Cover
Cover | 12 Months Ended |
Dec. 31, 2022 | |
Document Information [Line Items] | |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38159 |
Entity Registrant Name | BRITISH AMERICAN TOBACCO P.L.C. |
Entity Address, Address Line One | Globe House |
Entity Address, Address Line Two | 4 Temple Place |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | WC2R 2PG |
Entity Address, Country | GB |
Entity Central Index Key | 0001303523 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Group Income Statement
Group Income Statement - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Profit or loss [abstract] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Raw materials and consumables used | (4,781) | (4,542) | (4,583) | |
Changes in inventories of finished goods and work in progress | 227 | 160 | 445 | |
Employee benefit costs | (2,972) | (2,717) | (2,744) | |
Depreciation, amortisation and impairment costs | (1,305) | (1,076) | (1,450) | |
Other operating income | 722 | 196 | 188 | |
Loss on reclassification from amortised cost to fair value | (5) | (3) | (3) | |
Other operating expenses | (9,018) | (7,468) | (7,667) | |
Profit from operations | 10,523 | 10,234 | 9,962 | |
Net finance costs | (1,641) | (1,486) | (1,745) | |
Share of post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Taxation on ordinary activities | (2,478) | (2,189) | (2,108) | |
Profit for the year | 6,846 | 6,974 | 6,564 | |
Attributable to: | ||||
Owners of the parent | 6,666 | 6,801 | 6,400 | |
Non-controlling interests | 180 | 173 | 164 | |
Profit for the year | £ 6,846 | £ 6,974 | £ 6,564 | |
Earnings per share | ||||
Basic (in GBP per share) | £ 2.933 | £ 2.969 | £ 2.800 | |
Diluted (in GBP per share) | £ 2.919 | £ 2.956 | £ 2.789 | |
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Group Income Statement (Parenth
Group Income Statement (Parenthetical) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Duty excise and other taxes levied on tobacco and tobacco related products | £ 38,527 | £ 38,595 | £ 39,172 |
Group Statement of Comprehensiv
Group Statement of Comprehensive Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |||
Profit for the year | £ 6,846 | £ 6,974 | £ 6,564 |
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | 8,506 | 509 | (2,997) |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 8,923 | 32 | (2,597) |
– reclassified and reported in profit for the year | 5 | 291 | 0 |
– net investment hedges - net fair value (losses)/gains on derivatives | (578) | 75 | (16) |
– net investment hedges - differences on exchange on borrowings | (21) | 24 | (163) |
Cash flow hedges | |||
– net fair value gains/(losses) | 81 | 95 | (257) |
– reclassified and reported in profit for the year | 101 | 32 | 90 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | (17) | (32) | 44 |
Investments held at fair value | |||
– net fair value gains | 6 | 9 | 0 |
Associates – share of OCI, net of tax | 6 | (17) | (98) |
Items that will not be reclassified subsequently to profit or loss: | 201 | 313 | 55 |
Retirement benefit schemes | |||
– net actuarial gains | 316 | 382 | 105 |
– surplus recognition | (39) | (1) | 10 |
– tax on actuarial gains in respect of subsidiaries | (95) | (82) | (26) |
Associates – share of OCI, net of tax | 19 | 14 | (34) |
Total other comprehensive income/(expense) for the year, net of tax | 8,707 | 822 | (2,942) |
Total comprehensive income for the year, net of tax | 15,553 | 7,796 | 3,622 |
Attributable to: | |||
Owners of the parent | 15,370 | 7,622 | 3,474 |
Non-controlling interests | 183 | 174 | 148 |
Total comprehensive income for the year, net of tax | £ 15,553 | £ 7,796 | £ 3,622 |
Group Statement of changes in E
Group Statement of changes in Equity - GBP (£) £ in Millions | Total | held in employee share ownership trusts | Presented In C I E | Share capital £m | Share premium, capital redemption and merger reserves £m | Other reserves £m | Other reserves £m held in employee share ownership trusts | Other reserves £m Presented In C I E | Retained earnings £m | Retained earnings £m held in employee share ownership trusts | In respect of assets held-for-sale £m | Total attributable to owners of parent £m | Total attributable to owners of parent £m held in employee share ownership trusts | Total attributable to owners of parent £m Presented In C I E | Perpetual hybrid bonds £m | Non- controlling interests £m |
Balance, beginning at Dec. 31, 2019 | £ 64,160 | £ 614 | £ 26,609 | £ (3,555) | £ 40,234 | £ 63,902 | £ 258 | |||||||||
Total comprehensive income for the year, net of tax | 3,622 | (3,012) | 6,486 | 3,474 | 148 | |||||||||||
Profit for the year | 6,564 | 0 | 6,400 | 6,400 | 164 | |||||||||||
Other comprehensive (expense)/income for the year | (2,942) | (3,012) | 86 | (2,926) | (16) | |||||||||||
Other changes in equity | ||||||||||||||||
Cash flow hedges reclassified and reported in total assets | £ (33) | 33 | £ (33) | £ (33) | ||||||||||||
Employee share options | ||||||||||||||||
value of employee services | 88 | 0 | 88 | 88 | ||||||||||||
proceeds from new shares issued | 2 | 2 | 2 | |||||||||||||
treasury shares used for share option schemes | 0 | 7 | 0 | (7) | 0 | |||||||||||
Dividends and other appropriations | ||||||||||||||||
ordinary shares | (4,747) | 0 | (4,747) | (4,747) | ||||||||||||
to non-controlling interests | (141) | 0 | (141) | |||||||||||||
Purchase of own shares | ||||||||||||||||
held in employee share ownership trusts | £ (17) | £ 0 | £ (17) | £ (17) | ||||||||||||
Perpetual hybrid bonds | ||||||||||||||||
Other movements – non-controlling interests | 17 | 0 | 17 | |||||||||||||
Other movements | 4 | 0 | 4 | 4 | ||||||||||||
Balance, ending at Dec. 31, 2020 | 62,955 | 614 | 26,618 | (6,600) | 42,041 | 62,673 | £ 0 | 282 | ||||||||
Total comprehensive income for the year, net of tax | 7,796 | 523 | 7,099 | 7,622 | 174 | |||||||||||
Profit for the year | 6,974 | 0 | 6,801 | 6,801 | 173 | |||||||||||
Other comprehensive (expense)/income for the year | 822 | 523 | 298 | 821 | 1 | |||||||||||
Other changes in equity | ||||||||||||||||
Cash flow hedges reclassified and reported in total assets | (45) | (45) | (45) | (45) | ||||||||||||
Employee share options | ||||||||||||||||
value of employee services | 76 | 0 | 76 | 76 | ||||||||||||
proceeds from new shares issued | 4 | |||||||||||||||
treasury shares used for share option schemes | 0 | 0 | (4) | 0 | ||||||||||||
Dividends and other appropriations | ||||||||||||||||
ordinary shares | (4,904) | 0 | (4,904) | (4,904) | ||||||||||||
to non-controlling interests | (162) | (162) | ||||||||||||||
Purchase of own shares | ||||||||||||||||
held in employee share ownership trusts | (82) | 0 | (82) | £ (82) | ||||||||||||
Perpetual hybrid bonds | ||||||||||||||||
proceeds, net of issuance fees | 1,681 | 0 | 1,681 | |||||||||||||
tax on issuance fees | 4 | 0 | 4 | |||||||||||||
coupons paid | (6) | 0 | (6) | (6) | ||||||||||||
tax on coupons paid | 1 | 0 | 1 | 1 | ||||||||||||
Non-controlling interests – acquisitions | (5) | 0 | (5) | (5) | ||||||||||||
Other movements – non-controlling interests | 6 | 0 | 6 | |||||||||||||
Other movements | (4) | 0 | (4) | (4) | ||||||||||||
Balance, ending at Dec. 31, 2021 | 67,401 | 614 | 26,622 | (6,032) | 44,212 | £ 0 | 65,416 | 1,685 | 300 | |||||||
Total comprehensive income for the year, net of tax | 15,553 | 8,521 | 6,849 | 15,370 | 183 | |||||||||||
Profit for the year | 6,846 | 0 | 6,666 | 6,666 | 180 | |||||||||||
Other comprehensive (expense)/income for the year | 8,707 | 8,521 | 183 | 8,704 | 3 | |||||||||||
Other changes in equity | ||||||||||||||||
Cash flow hedges reclassified and reported in total assets | £ (129) | 129 | £ (129) | £ (129) | ||||||||||||
Employee share options | ||||||||||||||||
value of employee services | 81 | 0 | 81 | 81 | ||||||||||||
proceeds from new shares issued | 5 | 5 | 5 | |||||||||||||
treasury shares used for share option schemes | 0 | 1 | 0 | (1) | 0 | |||||||||||
Dividends and other appropriations | ||||||||||||||||
ordinary shares | (4,915) | 0 | (4,915) | (4,915) | ||||||||||||
to non-controlling interests | (141) | (141) | ||||||||||||||
Purchase of own shares | ||||||||||||||||
held in employee share ownership trusts | £ (80) | £ 0 | £ (80) | (80) | ||||||||||||
share buy-back programme | (2,012) | (2,012) | (2,012) | |||||||||||||
Perpetual hybrid bonds | ||||||||||||||||
coupons paid | (59) | 0 | (59) | (59) | ||||||||||||
tax on coupons paid | 11 | 0 | 11 | 11 | ||||||||||||
Non-controlling interests – acquisitions | (1) | 0 | (1) | (1) | ||||||||||||
Reclassification of equity in respect of assets classified as held-for-sale | 0 | 295 | (295) | 0 | ||||||||||||
Other movements | (4) | 0 | (4) | (4) | ||||||||||||
Balance, ending at Dec. 31, 2022 | £ 75,710 | £ 614 | £ 26,628 | £ 2,655 | £ 44,081 | £ (295) | £ 73,683 | £ 1,685 | £ 342 |
Group Balance Sheet
Group Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Intangible assets | £ 129,075 | £ 115,625 |
Property, plant and equipment | 4,867 | 4,953 |
Investments in associates and joint ventures | 2,020 | 1,948 |
Retirement benefit assets | 1,000 | 918 |
Deferred tax assets | 682 | 611 |
Trade and other receivables | 241 | 210 |
Investments held at fair value | 121 | 50 |
Derivative financial instruments | 131 | 243 |
Total non-current assets | 138,137 | 124,558 |
Inventories | 5,671 | 5,279 |
Income tax receivable | 149 | 117 |
Trade and other receivables | 4,367 | 3,951 |
Investments held at fair value | 579 | 456 |
Derivative financial instruments | 430 | 182 |
Cash and cash equivalents | 3,446 | 2,809 |
Total current assets other than non-current assets classified as held for sale | 14,642 | 12,794 |
Assets classified as held-for-sale | 767 | 13 |
Total current assets | 15,409 | 12,807 |
Total assets | 153,546 | 137,365 |
Equity – capital and reserves | ||
Share capital | 614 | 614 |
Share premium, capital redemption and merger reserves | 26,628 | 26,622 |
Other reserves | 2,655 | (6,032) |
Retained earnings | 44,081 | 44,212 |
In respect of assets held-for-sale | (295) | 0 |
Owners of the parent | 73,683 | 65,416 |
Perpetual hybrid bonds | 1,685 | 1,685 |
Non-controlling interests | 342 | 300 |
Total equity | 75,710 | 67,401 |
Liabilities | ||
Non-current borrowings | 38,726 | 35,666 |
Retirement benefit liabilities | 949 | 1,239 |
Deferred tax liabilities | 18,428 | 16,462 |
Other provisions for liabilities | 434 | 392 |
Trade and other payables | 944 | 982 |
Derivative financial instruments | 502 | 79 |
Non-current liabilities | 59,983 | 54,820 |
Current borrowings | 4,413 | 3,992 |
Income tax payable | 1,049 | 879 |
Other provisions for liabilities | 1,087 | 461 |
Trade and other payables | 10,449 | 9,577 |
Derivative financial instruments | 427 | 235 |
Current liabilities other than liabilities included in disposal groups classified as held for sale | 17,425 | 15,144 |
Liabilities classified as held for sale | 428 | 0 |
Current liabilities | 17,853 | 15,144 |
Total equity and liabilities | £ 153,546 | £ 137,365 |
Group Cash Flow Statement
Group Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of cash flows [abstract] | |||
Profit for the year | £ 6,846 | £ 6,974 | £ 6,564 |
Taxation on ordinary activities | 2,478 | 2,189 | 2,108 |
Share of post-tax results of associates and joint ventures | (442) | (415) | (455) |
Net finance costs | 1,641 | 1,486 | 1,745 |
Profit from operations | 10,523 | 10,234 | 9,962 |
Adjustments for | |||
– depreciation, amortisation and impairment costs | 1,305 | 1,076 | 1,450 |
– (increase)/decrease in inventories | (246) | 433 | (144) |
– (increase)/decrease in trade and other receivables | (42) | (393) | 300 |
– (decrease)/increase in Master Settlement Agreement payable | (145) | (36) | 369 |
– increase/(decrease) in trade and other payables | 3 | 183 | (320) |
– decrease in net retirement benefit liabilities | (110) | (104) | (96) |
– increase/(decrease) in other provisions for liabilities | 643 | (145) | 0 |
– other non-cash items | 606 | 430 | 46 |
Cash generated from operating activities | 12,537 | 11,678 | 11,567 |
Dividends received from associates | 394 | 353 | 351 |
Tax paid | (2,537) | (2,314) | (2,132) |
Net cash generated from operating activities | 10,394 | 9,717 | 9,786 |
Cash flows from investing activities | |||
Interest received | 85 | 33 | 48 |
Purchases of property, plant and equipment | (523) | (527) | (511) |
Proceeds on disposal of property, plant and equipment | 31 | 31 | 44 |
Purchases of intangibles | (133) | (218) | (244) |
Proceeds on disposals of intangibles | 3 | 0 | 0 |
Purchases of investments | (257) | (369) | (343) |
Proceeds on disposals of investments | 128 | 141 | 184 |
Investment in associates and acquisitions of other subsidiaries net of cash acquired | (39) | (133) | 39 |
Disposal of subsidiary, net of cash disposed of | 0 | (98) | 0 |
Net cash used in investing activities | (705) | (1,140) | (783) |
Cash flows from financing activities | |||
Interest paid | (1,578) | (1,479) | (1,737) |
Interest element of lease liabilities | (25) | (23) | (26) |
Capital element of lease liabilities | (161) | (154) | (164) |
Proceeds from increases in and new borrowings | 3,267 | 978 | 9,826 |
Reductions in and repayments of borrowings | (3,044) | (4,843) | (10,633) |
(Outflows)/inflows relating to derivative financial instruments | (117) | 229 | (283) |
Purchase of own shares | (2,012) | 0 | 0 |
Purchases of own shares held in employee share ownership trusts | (80) | (82) | (18) |
Proceeds from the issue of perpetual hybrid bonds, net of issuance costs | 0 | 1,681 | 0 |
Coupon paid on perpetual hybrid bonds | (60) | (6) | 0 |
Dividends paid to owners of the parent | (4,915) | (4,904) | (4,745) |
Capital injection from and purchases of non-controlling interests | (1) | 1 | 17 |
Dividends paid to non-controlling interests | (158) | (150) | (136) |
Other | 6 | 3 | 2 |
Net cash used in financing activities | (8,878) | (8,749) | (7,897) |
Net cash flows generated from/(used in) operating, investing and financing activities | 811 | (172) | 1,106 |
Transferred to held-for-sale | (368) | 0 | 0 |
Differences on exchange | 431 | (253) | (253) |
Increase/(decrease) in net cash and cash equivalents in the year | 874 | (425) | 853 |
Net cash and cash equivalents at 1 January | 2,463 | 2,888 | 2,035 |
Net cash and cash equivalents at 31 December | £ 3,337 | £ 2,463 | £ 2,888 |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Accounting Policies [Abstract] | |
Accounting policies | 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) and UK-adopted international accounting standards. UK-adopted international accounting standards differ 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. In performing its going concern assessment, management considered forecasts and liquidity requirements covering a period of at least twelve months from the date of approval of the financial statements and including the Group’s ability to fund its operations and generate cash to pay for debt as it falls due and takes into account the payments arising from the Master Settlement Agreement due in the U.S. in 2023 and other known liabilities or future payments (including interim dividends), as they fall due. This assessment includes consideration of geopolitical events in Europe and the general outlook in the global economy, as well as plausible downside scenarios after taking into account the Group’s Principal Risks and how they could impact the Group’s operations. Any mitigating actions, should they be required, are all within management’s control and could include reductions in discretionary spending such as acquisitions and capital expenditure, or drawdowns on committed facilities. After reviewing the Group’s annual budget, plans and financing arrangements, the Directors consider that the Group has adequate resources to continue operating and that it is therefore appropriate to continue to adopt the going concern basis in preparing the Annual Report and Form 20‑F. Management have, in preparing the financial statements, considered the impact of climate change. Management has considered the impact of climate change and determined that the impact is not expected to be material: – On the going concern of the Group, over the next three years; – On the Group’s assessment of future cash flows (including as related to the capital expenditure plans as related to the Group’s emission commitments) as used in impairment assessments for the value in use of non-current assets including goodwill (note 12(e)); and – In respect of factors including useful lives and residual values that determine the carrying value of non-financial current assets. There has been no material impact identified on the financial reporting judgements and estimates. Management is aware that the risks related to climate change are developing and ever changing. Accordingly, these judgements and estimates will be kept under review as the future impacts of climate change on the Group’s financial statements depend on environmental, regulatory and other factors outside of the Group’s control which are not all currently known. 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 critical accounting judgements include: – the identification and quantification of adjusting items, which are separately disclosed as memorandum information, is explained below and the impact of these on the calculation of adjusted earnings per share is described in note 11; – the presentation of disposal groups, including assets classified as held-for-sale and liabilities associated with assets classified as held-for-sale, including the assessment as to whether control would be lost based on the proposed terms of the sale and the impact of regulatory procedures, where applicable, to approve the sale, including amounts in respect of the proposed disposal of the Group’s businesses in Russia and Belarus (note 27(d)); – the determination as to whether to recognise provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims, as well as other contingent liabilities. 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 31. Judgement is necessary to assess the likelihood that a pending claim is probable (more likely than not to succeed), possible or remote; – 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. The application of these policies to Group subsidiaries in territories including Canada is explained in note 32; – the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on free access to foreign currency, or multiple exchange rates; and – the determination as to whether perpetual hybrid bonds should be classified as equity instead of borrowings (note 22(d)). The critical accounting estimates include: – t he review of asset values, including indefinite life assets, such as goodwill and certain trademarks and similar intangibles. The key assumptions used in respect of the impairment testing are the determination of cash-generating units, the budgeted and forecast 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 12; – the estimation of value ascribed to held-for-sale assets and disposal groups, which are measured at the lower of carrying amount and fair value of expected consideration less costs to sell, reflecting management’s best estimates after taking into account the amount and anticipated timing of sales proceeds less any costs to sell; – 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 15; and – 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 16, and a contingent tax asset is explained in note 10(b). Other provisions for liabilities and charges are as set out in note 24. Litigation related deposits are shown in note 17. The application of these accounting policies to the payments made and credits recognised under the Master Settlement Agreement by Reynolds American Inc. (Reynolds American) is described in note 6(b). 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 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. Non-controlling interests represent the share of earnings or equity in subsidiaries that is not attributable, directly or indirectly, to shareholders of the Group. Business combinations are accounted for using the acquisition method with identifiable assets, liabilities and contingent liabilities acquired measured at fair value at the date of acquiring control. Disposals of subsidiaries and businesses due to sale or market withdrawal are accounted for as disposals from the date of losing control and may be classified as held-for-sale disposal groups at the balance sheet date if specific tests under IFRS 5 Non-current Assets Held For Sale and Discontinued Operations are met. A disposal group is a group of assets to be disposed of, by sale or otherwise, together in a single transaction. Discontinued operations, where applicable, comprise material disposal groups representing a significant geographical area of operations or business activities. 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 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 and hyperinflationary territories 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 free access to foreign currency or multiple exchange rates, the applicable rates of exchange are regularly reviewed. 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 in the Translation reserve within Other reserves, as shown in note 22. 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. In addition, for hyperinflationary countries where the effect on the Group results would be significant, the financial statements in local currency are adjusted to reflect the impact of local inflation prior to translation into sterling, in accordance with IAS 29 Financial Reporting in Hyperinflationary Economies . Where applicable, IAS 29 requires all transactions to be indexed by an inflationary factor to the balance sheet date, potentially leading Impairment of Assets , where appropriate, to ensure that the carrying value correctly reflects the economic value of such assets. The results and balance sheets of operations in hyperinflationary territories are translated at the period end rate. Revenue Revenue principally comprises sales of cigarettes, other tobacco products, and nicotine products, to external customers. Revenue excludes duty, excise and other taxes related to sales in the period and is stated after deducting rebates, returns and other similar discounts and payments to direct and indirect customers. For the vast majority of the Group’s sales, revenue is recognised when control of the goods is transferred to a customer at a point in time; this is usually evidenced by a transfer of the significant risks and rewards of ownership upon delivery to the customer, which in terms of timing is not materially different to the date of shipping. For certain e-commerce subscription sales, revenue is allocated to each component of the subscription, with revenue recognised as each component is delivered to the customer. These sales are not material to the Group’s results. Retirement benefit costs The Group operates both defined benefit and defined contribution schemes including post-retirement healthcare schemes. 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. The net deficit or surplus for each defined benefit pension scheme is calculated in accordance with IAS 19 Employee Benefits 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. 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 profit or loss in the year in which it is incurred. Development expenditure is charged to profit or loss in the year it is incurred, unless it meets the recognition criteria of IAS 38 Intangible Assets to be capitalised as an intangible asset. Taxation Tax is chargeable on the profits for the period, together with deferred tax. The current income tax charge is calculated Deferred tax 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 taxes and applies IFRIC 23 Uncertainty over Income Tax Treatments which requires that, where there is uncertainty as to whether a particular tax treatment will be accepted by the relevant taxation authority, the financial statements reflect the probable outcome with estimated amounts determined based on the most likely amount or expected value, depending on which method is expected to better predict the resolution of the uncertainty. 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 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. Prior to 2021, these assets were amortised on a straight-line basis over periods not exceeding 10 years and are currently amortised on a straight-line basis over periods not exceeding 13 years due to ongoing use of the assets and the extension of third-party supplier support. In 2021 and 2022, the impact of this change in accounting estimate was a reduction in annual amortisation expense of £26 million and, in 2023, is estimated to be a reduction in annual amortisation expense of £12 million . Property, plant and equipment Purchased 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. Non-current assets are classified as held-for sale if their carrying value will be recovered principally through a sale transaction rather than through continuing use and if all of the conditions of IFRS 5 are met. Purchased 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 Leased assets The Group applies IFRS 16 Leases to contractual arrangements which are, or contain, leases of assets. Lease liabilities are initially recognised at an amount equal to the present value of estimated contractual lease payments at the inception of the lease, after taking into account any options to extend the term of the lease. Lease commitments are discounted to present value using the interest rate implicit in the lease if this can be readily determined, or the applicable incremental rate of borrowing, as appropriate. Right-of-use lease assets are initially recognised at an amount equal to the lease liability, adjusted for initial direct costs in relation to the assets, then depreciated over the shorter of the lease term and their estimated useful lives. Right-of-use assets are included as part of property, plant and equipment in note 13, with the lease liabilities included as part of borrowings in note 23. The Group has adopted several practical expedients available under the Standard including not applying the requirements of IFRS 16 to leases of intangible assets, applying the portfolio approach where appropriate to do so, and to not apply the recognition and measurement requirements of IFRS 16 to short-term leases (leases of less than 12 months maximum duration) or leases of low-value assets. Except for property-related leases, non-lease components have not been separated from lease components. 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 Impairment of financial assets held at amortised cost Loss allowances for expected credit losses on financial assets which are held at amortised cost are recognised on initial recognition of the underlying asset. As permitted by IFRS 9 Financial Instruments , loss allowances on trade receivables arising from the recognition of revenue under IFRS 15 Revenue from Contracts with Customers are initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal 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. Biological Assets The investments in associates and joint ventures shown in the Group balance sheet include biological assets held by Organigram Holdings Inc. In accordance with IAS 41 Agriculture , the Group measures biological assets at fair value less costs to sell up to the point of harvest, at which point this becomes the basis for the cost of finished goods inventories after harvest with subsequent expenditures incurred on these being capitalised, where applicable, in accordance with IAS 2 Inventories . Unrealised fair value gains and losses arising during the growth of biological assets are recognised immediately in the income statement. Equity instruments Instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements. Instruments that cannot be settled in the Group’s own equity instruments and that include no contractual obligation to deliver cash or another financial asset are classified as equity. Equity instruments issued by the Group are recognised at the proceeds received, net of issuance costs. On 27 September 2021, the Group issued two €1 billion perpetual hybrid bonds. As the Group has the unconditional right to avoid transferring cash or another financial asset in relation to these bonds, they are classified as equity instruments in the consolidated financial statements. Financial instruments The Group’s business model for managing financial assets is set out in the Group Treasury Manual which notes that the primary objective with regard to the management of cash and investments is to protect against the loss of principal. Additionally, the Group aims: to maximise Group liquidity by concentrating cash at the Centre, to align the maturity profile of external investments with that of the forecast liquidity profile, to wherever practicable, match the interest rate profile of external investments to that of debt maturities or fixings, and to optimise the investment yield within the Group’s investment parameters. The majority of financial assets are held in order to collect contractual cash flows (typically cash and cash equivalents and loans and other receivables), but some assets (typically investments) are held for investment potential. 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. In addition, current liabilities include amounts where the entity does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. The Group early adopted the phase one and phase two Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures regarding Interest Rate Benchmark Reform in 2019 and 2020, respectively. The Amendments provide an exemption for certain hedging relationships directly affected by changes in interest rate benchmarks where the reform gives rise to uncertainties regarding the interest rate designated as a hedged risk, or the timing or amount of interest rate cash flows of either the hedged item or of the hedging instrument, such that without the exemption the relationship might not qualify for hedge accounting. In addition, the Amendments provide a practical expedient for financial assets and financial liabilities that are modified or have existing contractual terms activated that change the basis for determining the contractual cash flows as a result of Interest Rate Benchmark Reform, such that the change to the contractual cash flows is applied prospectively by revising the effective interest rate. Non-derivative financial assets are classified on initial recognition in accordance with the Group’s business model as investments, loans and receivables, or cash and cash equivalents and accounted for as follows: – Investments : these are non-derivative financial assets that cannot be classified as loans and other receivables or cash – Loans and other receivables : these are non-derivative finan cial assets with fixed or determinable payments that are solely payments of principal and interest on the principal amount outstanding, that are primarily held in order to collect contractual cash flows. These balances include trade and other receivables, which are measured at amortised cost, using the effective interest rate method, and stated net of allowances for credit losses, and deposits with banks and other financial institutions which cannot be classified as cash and cash equivalents. In addition, as explained in no te 17, certain litigation related deposits are recognised as assets within loans and other receivables where management has determined that these payments represent a resource controlled by the entity as a result of past events. These deposits are held at the fair value of consideration transferred less impairment, if applicable, and have not been discounted. – 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 their as current borrowings in the liabilities section on the balance sheet. 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 , including borrowings and trade payables, 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. Drawdowns and repayments of short-term borrowings which have a maturity period of three months or less are stated net in the cash flow statement; drawdowns and repayments on all other borrowings are stated gross in the cash flow statement. As shown in note 23, certain borrowings are subject to fair value hedges, as defined below. 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 |
Segmental analyses
Segmental analyses | 12 Months Ended |
Dec. 31, 2022 | |
Reportable Segments [Abstract] | |
Segmental analyses | 2 Segmental analyses (revised) The chief operating decision maker, the Management Board, reviews adjusted profit from operations at constant currencies to As part of plans to reduce complexity and drive efficiency in management structures and achieve a better balance in the scale of our regions, it was decided to reduce the management structure from four regions to three regions, with the new organisational structures in place beginning April 2023 as follows: – Americas and Europe (AME), comprising largely the former Europe region with the inclusion of the markets in Latin America and Canada that were parts of the former AmSSA region. – Asia-Pacific, Middle East and Africa (APMEA) comprising the former APME region with the inclusion of the markets in Sub-Saharan Africa. Armenia, Azerbaijan, Caucasus, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan and Uzbekistan that were part of the former Europe region are now included as part of APMEA; and – the U.S. has remained unchanged. Accordingly, the following disclosures have been revised for all periods presented in these consolidated financials: – Note 2 Segmental analyses; – Note 12 Intangible assets; and – Note 29 Group employees. The three 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. Transactions between Group subsidiaries are conducted on arm’s length terms in accordance with appropriate transfer pricing rules and Organisation for Economic Cooperation & Development (OECD) principles. Net finance costs (comprising interest income and interest expense), share of post-tax results of associates and joint ventures and taxation are centrally managed, and accordingly, such items are not presented by segment as they are excluded from the measure of segment profitability. Regional Directors are responsible for delivering the operating and financial results of their Region inclusive of all product categories. Therefore, the results of New Categories (comprising Vapour products, Tobacco Heating products and Modern Oral products) are reported to the Management Board as part of the results of each geographic region. However, additional information has been provided to disaggregate revenue based on product category to enable investors to better compare the Group’s business performance across periods and by reference to the Group’s investment activity. In respect of the U.S. region, all financial statements and financial information provided by or with respect to the U.S. business or Reynolds American Inc. (RAI) (and/or RAI and its subsidiaries (collectively, the ‘Reynolds Group’)) are prepared on the basis of US GAAP and constitute the primary financial statements or financial information of the U.S. business or RAI (and/or the Reynolds 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 IFRS. To the extent any such financial information provided in these financial statements relates to the U.S. business or RAI (and/or the Reynolds Group), it is provided as an explanation of the U.S. business’s or RAI’s (and/or the Reynolds Group’s) primary US GAAP based financial statements and information. The following table shows 2022 revenue at current rates, and 2022 revenue translated using 2021 rates of exchange. The 2021 figures are stated at the 2021 rates of exchange. 2022 2021 Revenue Constant rates Translation exchange Revenue Current Rates Revenue U.S. 11,358 1,281 12,639 11,691 AME 9,119 168 9,287 8,444 APMEA 5,796 (67) 5,729 5,549 Revenue 26,273 1,382 27,655 25,684 The following table shows 2021 revenue at current rates, and 2021 revenue translated using 2020 rates of exchange. The 2020 figures are stated at the 2020 rates of exchange. 2021 2020 Revenue Constant rates Translation exchange Revenue Current Rates Revenue U.S. 12,530 (839) 11,691 11,473 AME 8,925 (481) 8,444 8,366 APMEA 6,106 (557) 5,549 5,937 Revenue 27,561 (1,877) 25,684 25,776 The following table shows 2022 profit from operations and adjusted profit from operations at current rates, and 2022 adjusted profit from operations translated using 2021 rates of exchange. The 2021 figures are stated at the 2021 rates of exchange. 2022 2021 Adjusted* segment result Constant rates Translation exchange Adjusted* segment result Current rates Adjusting* items Segment result Current rates Adjusted* segment result Adjusting* items Segment result U.S. 6,095 740 6,835 (630) 6,205 5,887 (321) 5,566 AME 3,268 80 3,348 (422) 2,926 3,059 (157) 2,902 APMEA 2,263 (38) 2,225 (833) 1,392 2,204 (438) 1,766 Profit from operations 11,626 782 12,408 (1,885) 10,523 11,150 (916) 10,234 Net finance costs (1,641) (1,486) Share of post-tax results of associates and joint ventures 442 415 Profit before taxation 9,324 9,163 Taxation on ordinary activities (2,478) (2,189) Profit for the year 6,846 6,974 Note: * The adjustments to profit from operations are explained in notes 3, 4, 6(d), 6(f), 6(g), 6(h), 6(i), 6(j), and 7. The following table shows 2021 profit from operations and adjusted profit from operations at current rates, and 2021 adjusted profit from operations translated using 2020 rates of exchange. The 2020 figures are stated at the 2020 rates of exchange. 2021 2020 Adjusted* segment result Constant rates Translation exchange Adjusted* segment result Current rates Adjusting* items Segment result Current rates Adjusted* segment result Adjusting* items Segment result U.S. 6,343 (456) 5,887 (321) 5,566 5,784 (809) 4,975 AME 3,210 (151) 3,059 (157) 2,902 3,259 (183) 3,076 APMEA 2,399 (195) 2,204 (438) 1,766 2,322 (411) 1,911 Profit from operations 11,952 (802) 11,150 (916) 10,234 11,365 (1,403) 9,962 Net finance costs (1,486) (1,745) Share of post-tax results of associates and joint ventures 415 455 Profit before taxation 9,163 8,672 Taxation on ordinary activities (2,189) (2,108) Profit for the year 6,974 6,564 Note: * The adjustments to profit from operations are explained in notes 3, 4, 6(d), 6(f), 6(g), 6(h), 6(i), 6(j), and 7. Adjusted profit from operations at constant rates of £11,626 million (2021: £11,952 million; 2020: £11,661 million) excludes adjusting depreciation, amortisation and impairment charges as explained in notes 4 and 7. These are excluded from segmental adjusted profit from operations at constant rates as follows: 2022 2021 Adjusted depreciation, amortisation and impairment Constant rates Translation exchange Adjusted depreciation, amortisation and impairment Current rates Adjusting items Depreciation, amortisation and impairment Current rates Adjusted depreciation, amortisation and impairment Adjusting items Depreciation, amortisation and impairment U.S. 221 16 237 322 559 203 276 479 AME 363 11 374 116 490 333 56 389 APMEA 186 3 189 67 256 188 20 208 770 30 800 505 1,305 724 352 1,076 2021 2020 Adjusted depreciation, amortisation and impairment Constant rates Translation exchange Adjusted depreciation, amortisation and impairment Current rates Adjusting items Depreciation, amortisation and impairment Current rates Adjusted depreciation, amortisation and impairment Adjusting items Depreciation, amortisation and impairment U.S. 210 (7) 203 276 479 204 272 476 AME 351 (18) 333 56 389 336 126 462 APMEA 200 (12) 188 20 208 211 301 512 761 (37) 724 352 1,076 751 699 1,450 Additional information by product category Although the Group’s operations are managed on a Regional basis, additional information for revenue is provided based on product category as follows: Revenue 2022 £m 2021 £m 2020 £m New Categories 2,894 2,054 1,443 Vapour 1,436 927 611 THP 1,060 853 634 Modern Oral 398 274 198 Traditional Oral 1,209 1,118 1,160 Combustibles 23,030 22,029 22,752 Other 522 483 421 Revenue 27,655 25,684 25,776 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 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m External revenue 228 209 188 27,427 25,475 25,588 27,655 25,684 25,776 United Kingdom All foreign countries Group 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Intangible assets 529 481 128,546 115,144 129,075 115,625 Property, plant and equipment 215 339 4,652 4,614 4,867 4,953 Investments in associates and joint ventures — 8 2,020 1,940 2,020 1,948 The consolidated results of the Reynolds Group operating in the U.S. met the criteria for separate disclosure under the requirements of IFRS 8 Operating Segments . Revenue arising from the operations of the Reynolds Group, inclusive of the sales made to fellow Group companies, in 2022, 2021 and 2020 was £12,635 million, £11,707 million and £11,481 million, respectively. The majority of sales are to customers based in the U.S.. Non-current assets attributable to the operations of the Reynolds Group were £119,597 million (2021: £106,495 million). The main acquisitions comprising the goodwill balance of £47,956 million (2021: £43,194 million), included in intangible assets, are provided in note 12. Included in investments in associates and joint ventures are amounts of £ 1,865 million (2021: £1,759 million) attributable to the investment in ITC Ltd. Further information is provided in notes 9 and 14. |
Employee benefit costs
Employee benefit costs | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of defined benefit plans [abstract] | |
Employee benefit costs | 3 Employee benefit costs Note 2022 £m 2021 £m 2020 £m Wages and salaries 2,553 2,315 2,277 Social security costs 201 185 194 Other pension and retirement benefit costs 15 133 139 182 Share-based payments - equity and cash-settled 28 85 78 91 2,972 2,717 2,744 Included within employee benefits costs are expenses in relation to the Group’s restructuring and integration initiatives of £315 million (2021: £160 million; 2020: £91 million), as explained in note 7. Following a partial buy-out in 2021, in 2022, a second partial buy-out was concluded in the U.S. with approximately US$1.6 billion ( £1.3 billion ) (2021: US$1.9 billion ( £1.4 billion )) of plan liabilities being removed from the balance sheet, resulting in a settlement gain of £16 million (2021: £35 million ), which was reported in the income statement, and recognised as an adjusting item. |
Depreciation, amortisation and
Depreciation, amortisation and impairment costs | 12 Months Ended |
Dec. 31, 2022 | |
Depreciation Amortisation And Impairment Costs [Abstract] | |
Depreciation, amortisation and impairment costs | 4 Depreciation, amortisation and impairment costs 2022 £m 2021 £m 2020 £m Intangibles – amortisation and impairment of trademarks and similar intangibles 317 333 360 – amortisation and impairment of computer software 142 129 129 – impairment of goodwill — 57 209 Property, plant and equipment - depreciation and impairment 846 557 752 1,305 1,076 1,450 Enumerated below are movements in costs that have impacted depreciation, amortisation and impairment in 2022, 2021 and 2020. These include changes in our underlying business performance, as well as impact of adjusting items, as defined in note 1. Intangibles – amortisation and impairment of trademarks and similar intangibles Acquisitions in previous years have resulted in the capitalisation of trademarks and similar intangibles, including those which are amortised over their expected useful lives, which do not exceed 20 years. The amortisation and impairment of these acquired trademarks and similar intangibles are charged to the income statement of which the adjusting element is £288 million (2021: Impairment of goodwill The impairment of goodwill is charged to the income statement as adjusting. During 2022, the Group made no impairments of goodwill. During 2021, the Group impaired £3 million of goodwill held in Myanmar as a result of the decision to cease activities in the market. £54 million in 2021 due to continued difficult trading conditions in Peru as During 2020, the Group impaired the goodwill arising from Malaysia amounting to £197 million, goodwill arising from the acquisition of Twisp of £11 million and goodwill arising from the acquisition of Blue Nile of £1 million . Property, plant and equipment – depreciation and impairment The following items are included within depreciation and impairment of property, plant and equipment: – Restructuring and integration related depreciation and impairment costs and reversals were a net cost of £220 million (2021: £11 million net credit; 2020: £151 million net cost) resulting from obsolete machines in relation to downsizing and factory rationalisation as mentioned in note 7; and – Gains and losses recognised on disposal of property, plant and equipment. |
Other operating income
Other operating income | 12 Months Ended |
Dec. 31, 2022 | |
Other Operating Income [Abstract] | |
Other operating income | 5 Other operating income Other operating income of £722 million (2021: £196 million; 2020: £188 million) comprises income that is associated with the Group’s normal activities, but which falls outside the definition of turnover and includes one-off capital profits on property sales and one-off disposals of fixed assets. In 2022, other operating income mainly related to the calculation of historical VAT on social contributions in Brazil, where the Group recognised £472 million. This has been treated as an adjusting item. In addition, £78 million of the contingent asset in respect of historical VAT on social contributions claims was sold to financial institutions for £38 million. In 2021 and 2020, the Group recognised £5 million and £58 million, respectively, in respect of a tax case in Brazil. In addition, during 2021, £130 million of the unrecognised contingent asset in respect of historical VAT on social contributions claims was sold to financial institutions for £45 million. In 2022, as disclosed in note 7, certain items of operating income have been recognised as part of the Group’s restructuring and integration activities. Also, in 2021, R.J. Reynolds Tobacco Company (RJRT) reached an agreement with several Master Settlement Agreement (MSA) states to waive RJRT’s claims under the MSA in connection with a settlement between those MSA states and a non-participating manufacturer, S&M Brands, Inc. (S&M Brands), under which the states released certain claims against S&M Brands in exchange for receiving a portion of the funds S&M Brands had deposited into escrow accounts in those states pursuant to the states’ escrow statutes. In consideration for waiving claims, RJRT, together with Santa Fe Natural Tobacco Company, received approximately £40 million from the escrow funds paid to those MSA states under their settlement with S&M Brands. |
Other operating expenses
Other operating expenses | 12 Months Ended |
Dec. 31, 2020 | |
Expenses by nature [abstract] | |
Other operating expenses | 6 Other operating expenses (a) Items included within other operating expenses The following items are included within other operating expenses: Notes 2022 £m 2021 £m 2020 £m Other operating expenses 9,018 7,468 7,667 The following items are included within other operating expenses: Master settlement agreement 6(b),(d) 2,387 2,486 2,783 Marketing costs in operating expenses 6(c) 1,160 1,242 1,096 Inventory write-offs 20 250 215 309 Research and development expenses (excluding employee benefit costs and depreciation) 6(e) 138 141 121 Loss on disposal of businesses 6(f) (6) 358 — Excise, VAT and penalties in respect of disputes in Turkey, South Korea and Russia 6(g) — 26 (40) Charges in respect of DOJ investigation 6(h) 450 — — Charges in respect of assets held-for-sale 6(j) 612 — — Charges in respect of Nigerian FCCPC case 6(i) 79 — — Social contribution expense related to Brazil VAT case 12 — — Exchange differences 92 19 (29) Hedge ineffectiveness within operating profit 36 (5) (3) Expenses relating to short-term leases 11 8 10 Expenses relating to leases of low-value assets 1 1 1 Gains arising from sale and leaseback transactions — — (1) Auditor’s remuneration 6(k) 29 27 28 (b) Master Settlement Agreement In 1998, the major U.S. cigarette manufacturers (including the R.J. Reynolds Tobacco Company, Lorillard and Brown & Williamson, businesses which are now part of the Reynolds Group) entered into the Master Settlement Agreement (MSA) with attorneys general representing most U.S. states and territories. The MSA imposes a perpetual stream of future payment obligations on the major U.S. cigarette manufacturers. The amounts of money that the participating manufacturers are required to annually contribute are based upon, amongst other things, the volume of cigarettes sold and market share (based on cigarette shipments in that year). During 2012, R.J. Reynolds Tobacco Company, 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 the MSA, and three more states joined the agreement in 2013. Under this agreement, R.J. Reynolds Tobacco Company has received credits of more than US$1 billion, in respect of its Non-Participating Manufacturer (NPM) Adjustment claims related to the period from 2003 to 2012. These credits have been applied against the companies’ MSA payments over a period of five years from 2013, subject to, and dependent upon, meeting the various ongoing performance obligations. During 2014, two additional states agreed to settle NPM disputes related to claims for the period 2003 to 2012. R.J. Reynolds Tobacco Company has received US$170 million in credits, which has been applied over a five-year period from 2014. During 2015, another state agreed to settle NPM disputes related to claims for the period 2004 to 2014 and included a method to determine future adjustments from 2015 forward. R.J. Reynolds Tobacco Company has received US$285 million in credits, which was applied over a four-year period from 2016. During 2016, no additional states agreed to settle NPM disputes. During 2017, two more states agreed to settle NPM disputes related to claims for the period 2004 to 2014. It is estimated that R.J. Reynolds Tobacco Company will receive US$61 million in credits, which will be applied over a five-year period from 2017. During 2018, nine more states agreed to settle NPM disputes related to claims for the period 2004 to 2019, with an option through 2022, subject to certain conditions. It is estimated that R.J. Reynolds Tobacco Company will receive US$182 million in credits for settled periods through 2017, which will be applied over a five-year period from 2018. Also, in 2018, one additional state agreed to settle NPM disputes related to claims for the period 2004 to 2024, subject to certain conditions. It is estimated that R.J. Reynolds Tobacco Company will receive US$205 million in credits for settled periods through 2017, which will be applied over a five-year period from 2019. In the first quarter of 2020, certain conditions set forth in the 2017 and 2018 agreements were met for those 10 states. In 2022, an additional state settled NPM disputes related to claims for the period 2005 to 2018. It is estimated that R.J. Reynolds Tobacco Company will receive a credit of US$130 million for settled periods through 2018, which will be applied over a five-year period from 2022. Credits in respect of future years’ payments and the NPM Adjustment claims 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 as adjusting items. In 2020, R.J. Reynolds Tobacco Company recognised additional expenses under the state settlement agreements in the States of Mississippi, Florida, Texas and Minnesota. R.J. Reynolds Tobacco Company recognised US$241 million of expense for payment obligations to the State of Florida for the ITG Brands, LLC acquired brands from the date of divestiture, June 12, 2015, as a result of an unfavourable judgment. In addition, The BAT Group is subject to substantial payment obligations under the MSA and the state settlement agreements with the States of Mississippi, Florida, Texas and Minnesota (such settlement agreements, collectively State Settlement Agreements). Reynolds Group’s operating subsidiaries’ expenses and payments under the MSA and the State Settlement Agreements for 2022 amounted to US$2,951 million (2021: US$3,420 million; 2020: US$3,572 million) in respect of settlement expenses and US$3,129 million (2021: US$3,744 million; 2020: US$2,848 million) in respect of settlement cash payments. (c) Marketing costs recognised as operating expenses Certain marketing activities, such as discounts or allowances provided to customers, are required to be deducted from revenue as explained in note 1. Other marketing expenses, such as point of sale and promotional materials, media advertising and sponsorship, and consumer research, are reported as operating expenses and have been shown in the table above. (d) Litigation costs Litigation costs included within other operating expenses, and reported as an adjusting item, were £170 million (2021: £54 million; 2020: £87 million) predominantly related to litigation costs including Engle progeny with the remainder relating to immaterial other health related claims. In 2022, the Group received £26 million of NPM credits related to a favourable resolution in respect of MSA litigation in the state of Illinois. In 2020, also included as an adjusting item was a charge of £400 million incurred largely in respect of charges following the development in cases regarding payment obligations under the state settlement agreements with Florida, Texas, Minnesota and Mississippi for brands previously sold to a third party. The Group recognised a charge of £188 million in the period for a final judgment of a case in the Florida court. The Group continues to pursue indemnification remedies in a Delaware court for payments made to Florida as a result of this judgment, as explained in note 31. During 2020, the Group also recognised a provision of £212 million related to the settlement discussions with other manufacturers and the States of Texas, Minnesota and Mississippi for payment obligations related to these brands in prior years. During 2021, an additional £12 million expense was recognised in relation to the final resolution of the Texas and Minnesota claims. (e) Research and development Total research and development costs, including employee benefit costs and depreciation, are £323 million (2021: £304 million; 2020: £307 million). (f) Loss on disposal of businesses On 6 August 2021, the Group disposed of its Iranian subsidiary, B.A.T. Pars Company PJSC (BAT Pars). Included within other operating expenses, and recognised as an adjusting item in 2021, was a charge of £358 million comprising £272 million of foreign exchange reclassified from other comprehensive income (note 22(c)(i)) and an impairment charge and associated costs of £88 million. In 2022, as a result of the unwind of discounting on the deferred proceeds and a true-up on the completion of accounts, a credit of £6 million (2021: £2 million) was recognised. (g) Tax disputes in Turkey, South Korea and Russia The settlement of tax disputes in Turkey, South Korea and Russia were recognised as adjusting items. Turkey British American Tobacco Tutun Mamulleri Sanayi ve Ticaret Anonim Sirketi (BAT Tutun) was subject to a series of tax audits mainly on inventory movements for the years 2015, 2016 and 2019. In August 2021, BAT Tutun applied under the relevant tax amnesty law to settle its retrospective tax assessments. Based on the settlement through the tax amnesty procedure, in 2021, BAT Tutun agreed to pay £47 million in 18 instalments from 1 November 2021 until 31 July 2024. Of the £47 million, £30 million of excise and penalties were recognised and charged to operating profit, £11 million as interest in net finance costs (note 8(b)) and £6 million in taxation. South Korea As explained in note 31, on 16 September 2021, Rothmans Far East B.V. Korea Branch Office received £4 million in relation to a VAT case. In line with the treatment of the associated expense incurred in 2016, the cash received was recognised as an adjusting item in 2021. Russia In August 2019, the Russian tax authority issued a final audit report to JSC British American Tobacco-SPb (BAT SpB) related to the application of legislation introduced in 2017 that prospectively limited the amount of production that could take place prior to excise tax increases, without being subject to higher excise tax rates. The final audit report sought to retrospectively apply the legislation to the years 2015 to 2017. BAT SpB submitted an appeal to the Federal Tax Services (FTS) objecting to the findings. The FTS accepted some of BAT SpB’s arguments and, on 27 January 2020, a final claim was issued by the FTS. As a consequence, the Group recognised a charge of £202 million. In 2020, a credit of £40 million was recognised in relation to the 2019 charge discussed above, of which £14 million was offset in the adjusting items included in taxation (note 10(d)). (h) Charges in respect of DOJ and OFAC investigations From time to time, the Group investigates, and becomes aware of governmental authorities’ investigations into, allegations of misconduct, including alleged breaches of sanctions and allegations of corruption, against Group companies. The Group cooperates with the authorities’ investigations, where appropriate. For example, the Group has been cooperating with investigations by the DOJ and OFAC into suspicions of breaches of sanctions. The Group is currently engaged in discussions with both agencies to find a resolution through settlement. A provision of £450 million has been recognised in 2022, however it cannot be excluded that the amount of any potential settlement with the DOJ and OFAC may vary from this amount. (i) Charges in respect of Nigerian FCCPC case In 2022, a charge of £79 million was recognised, related to the conclusion of the investigation into alleged violations of the Nigerian Competition and Consumer Protection Act and National Tobacco Control Act. (j) Charges in respect of assets held-for-sale On 11 March 2022, the Group announced the intention to transfer its Russian business in full compliance with international and local laws. The Group has two subsidiaries in Russia (BAT Russia), being JSC British American Tobacco-SPb and JSC International Tobacco Marketing Services (ITMS). In addition, the Group's subsidiary in Belarus, International Tobacco Marketing Services BY, will form part of the transaction. Upon completion, it is intended that the Group will no longer have a presence in Russia (or Belarus). In accordance with IFRS 5, the assets and liabilities of these subsidiaries have been classified as held-for-sale at 31 December 2022 and presented as such on the balance sheet at an estimated fair value less costs to sell. An impairment charge of £554 million and associated costs of £58 million have been recognised in Other operating expenses as adjusting items. Refer to note 27(d)(i) for further details. (k) Auditor’s remuneration 2022 £m 2021 £m 2020 £m Auditor’s remuneration Total expense for audit services pursuant to legislation: – fees to KPMG LLP for Parent Company and Group audit 9.4 8.7 8.7 – fees to KPMG LLP firms and associates for local statutory and Group 11.0 9.5 9.9 Total audit fees expense - KPMG LLP firms and associates 20.4 18.2 18.6 Audit fees expense to other firms 0.2 0.2 0.2 Total audit fees expense 20.6 18.4 18.8 Fees to KPMG LLP firms and associates for other services: – audit-related assurance services 7.1 8.0 8.5 – other assurance services 0.9 0.3 0.5 – tax advisory services — — — – tax compliance — — — – audit of defined benefit schemes of the Company 0.2 0.4 0.5 – other non-audit services — — — 8.2 8.7 9.5 The total auditor’s remuneration to KPMG firms and associates included above are £28.6 million (2021: £26.9 million; 2020: £28.1 million). |
Restructuring and integration c
Restructuring and integration costs | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
Restructuring and integration costs | 7 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. These costs represent additional expenses incurred that are not related to the normal business and day-to-day activities. These initiatives include the costs associated with Quantum, being a review of the Group’s organisational structure announced in 2019 to simplify the business and create a more efficient, agile and focused company. In 2020 and 2022, these also included a review of the Group’s manufacturing operations. Restructuring initiatives (including as related to Quantum) have largely been announced to those that will be impacted, although the delivery of such programmes is expected to be substantially completed by the end of 2023. The costs of the Group’s initiatives are included in profit from operations under the following headings: Notes 2022 £m 2021 £m 2020 £m Employee benefit costs 3 315 160 91 Depreciation, amortisation and impairment costs 4 220 (11) 151 Other operating income 5 (1) — — Other operating expenses 237 1 166 771 150 408 The adjusting charge in 2022, 2021 and 2020 relates to the cost of employee packages in respect of Quantum and the ongoing costs associated with initiatives to improve the effectiveness and efficiency of the Group as a globally integrated organisation. In addition, Quantum initiatives in certain countries have resulted in the move to above market business models utilising local distributors as importers. As a consequence, with the cessation of a physical presence in these markets, foreign exchange previously recognised in Other Comprehensive Income for these countries has been reclassified to the income statement and reported within other operating expenses (note 22(c)(i)). The restructuring costs in 2022 include costs related to factory closures or rationalisation in APME, Europe and the U.S. and costs recognised as part of the Group's announced exit from Egypt. In 2021, included under the Quantum initiatives above is a charge of £27 million, including £4 million for foreign exchange reclassified from equity (note 22(c)(i)), related to the Group's withdrawal from Myanmar. In addition, as set out in note 4, goodwill in relation to Myanmar was impaired and charged to the income statement. The depreciation, amortisation and impairment costs in 2021 included a credit of £25 million due to a partial reversal of previously estimated impairment following the revision of factory rationalisation initiatives. Also, in 2021, included within other operating expenses is a credit of £59 million representing the release of an accrual on the successful conclusion of the dispute with former shareholders of Reynolds American, as explained in note 31. The adjusting charges in 2020 are mainly in relation to Quantum and the downsizing and factory rationalisation activities in the Netherlands, Hungary, Russia and APME. Also, in 2020, as a consequence of a reduction in volumes due to the significant increase in excise in Indonesia, the Group announced a restructuring programme which included the partial closure of the factory operations in Indonesia. As a result of this decision, a £69 million impairment was recognised in respect of machinery. This impairment charge related to some of the machinery in use as well as machinery held for future use which, following the significant changes in consumer preferences, is not expected to be brought in to manufacturing in the future. |
Net finance costs
Net finance costs | 12 Months Ended |
Dec. 31, 2022 | |
Net Finance Costs [Abstract] | |
Net finance costs | 8 Net finance costs (a) Net finance costs/(income) 2022 £m 2021 £m 2020 £m Interest expense 1,602 1,436 1,605 Interest expense on lease liabilities 25 24 26 Facility fees 21 33 23 Interest and fair value related to early repurchase of bonds (note 8(b)) — — 142 Interest related to adjusting tax payables (note 8(b)) 36 31 11 Fair value changes on derivative financial instruments and hedged items (473) 252 (217) Fair value change on other financial items (note 8(b)) (2) 24 — Exchange differences 524 (279) 205 Finance costs 1,733 1,521 1,795 Interest under the effective interest method (92) (35) (50) Finance income (92) (35) (50) Net finance costs 1,641 1,486 1,745 The Group manages foreign exchange gains and losses and fair value changes on a net basis excluding adjusting items, which are explained in note 8(b). The derivatives that generate the fair value changes are explained in note 19. Facility fees principally relate to the Group’s central banking facilities. In October 2020, the Group completed a tender offer to repurchase sterling-equivalent £2,653 million of bonds, including £24 million equivalent £462 million of bonds, including £6 million of accrued interest. Other costs directly associated with the early repurchase of bonds, including the premium paid, were treated as adjusting items, as detailed in note 8(b). (b) Adjusting items included in net finance costs Adjusting items are significant items in net finance costs which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. The Group recognised interest on adjusting tax payables of £36 million (2021: £31 million; 2020: £11 million), which included interest of Included within £2 million of fair value changes on other financial items are: (i) £15 million of foreign exchange arising on the revaluation of foreign currency balances held in Russia that no longer qualify for hedge accounting, due to the proposed transfer of the Group's Russian business as detailed in note 27(d)(i); and (ii) In 2021, as part of the disposal of the Group’s operations in Iran (note 27(d)), a provision of £24 million was charged to net finance costs against non-current investments held at fair value due to the uncertainty around recovery of these funds. In 2022, part of these funds were recovered and therefore a reversal of the provision of £17 million is recognised in net finance costs. In 2020, the Group incurred additional interest costs of £157 million and fair value gains of £15 million in relation to the early repurchase of bonds. |
Associates and joint ventures
Associates and joint ventures | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Associates And Joint Ventures [Abstract] | |
Associates and joint ventures | 9 Associates and joint ventures 2022 2021 2020 Total Group’s Total Group's share Total Group's share Revenue 9,486 2,675 7,668 2,164 7,001 1,983 Profit from operations 1,971 622 1,911 567 2,006 591 Net finance costs 21 4 13 2 (6) (2) Profit on ordinary activities 1,992 626 1,924 569 2,000 589 Taxation on ordinary activities (595) (176) (499) (147) (421) (125) Profit on ordinary activities after taxation 1,397 450 1,425 422 1,579 464 Non-controlling interests (27) (8) (22) (7) (30) (9) Post-tax results of associates and joint ventures 1,370 442 1,403 415 1,549 455 Enumerated below are movements that have impacted the post-tax results of associates and joint ventures in 2022, 2021 and 2020. (a) Adjusting items In 2022, the Group’s interest in ITC Ltd. (ITC) decreased from 29.38% to 29.19% (2021: 29.42% to 29.38%; 2020: 29.46% to 29.42%) 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 loss of £3 million (2021: £6 million gain; 2020: £17 million gain), which is treated as a deemed partial disposal and included in the income statement. Also, in the first half of 2022, the Group impaired the investment in Organigram by £59 million (net of tax), driven by the decrease in the company’s share price. In addition to this, the Group incurred a £2 million charge (2021: £2 million; 2020: £nil) in relation to the amortisation of acquired intangibles associated with the acquisition of Organigram in March 2021, as described in note 14. During 2022, the Group decided to cease business activities altogether in Yemen, due to the challenging operating environment in the country. This led to the full impairment of the investment in the Group's remaining associate in Yemen, United Industries Company Limited, with a charge of £18 million to the income statement. In 2021, the Group had already impaired the investment in Kamaran Industry & Investment Company, the Group’s other associate in Yemen. This resulted in a charge of £18 million to the income statement. As detailed in note 14, also in 2021, as a result of the liquidation of Tisak d.d., the Group reclassified the foreign exchange previously recognised in other comprehensive income to the income statement. This resulted in a credit of £2 million to the income statement. In 2020, ITC recognised a charge in respect of the cost of leaf tobacco stocks destroyed in a third-party warehouse fire, the Group’s share of which was £4 million. (b) Other financial information The Group’s share of the results of associates and joint ventures is shown in the table below. 2022 2021 2020 Group’s Group’s Group’s Profit on ordinary activities after taxation – attributable to owners of the parent 442 415 455 Other comprehensive income: Items that may be reclassified to profit and loss 6 (17) (98) Items that will not be reclassified to profit and loss 19 14 (34) Total comprehensive income 467 412 323 Summarised financial information of the Group’s associates and joint ventures is shown below. 2022 ITC Others Total Revenue 7,126 2,360 9,486 Profit on ordinary activities before taxation 2,395 (403) 1,992 Post-tax results of associates and joint ventures 1,761 (391) 1,370 Other comprehensive income 56 32 88 Total comprehensive income 1,817 (359) 1,458 2021 ITC Others Total Revenue 5,312 2,356 7,668 Profit on ordinary activities before taxation 1,931 (7) 1,924 Post-tax results of associates and joint ventures 1,427 (24) 1,403 Other comprehensive income (11) — (11) Total comprehensive income 1,416 (24) 1,392 2020 ITC Others Total Revenue 4,892 2,109 7,001 Profit on ordinary activities before taxation 1,930 70 2,000 Post-tax results of associates and joint ventures 1,495 54 1,549 Other comprehensive income (450) — (450) Total comprehensive income 1,045 54 1,099 |
Taxation on ordinary activities
Taxation on ordinary activities | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Taxation on ordinary activities | 10 Taxation on ordinary activities (a) Summary of taxation on ordinary activities 2022 £m 2021 £m 2020 £m UK corporation tax (3) (25) 38 Comprising: – current year tax expense 2 1 38 – adjustments in respect of prior periods (5) (26) — Overseas tax 2,721 2,401 2,387 Comprising: – current year tax expense 2,675 2,418 2,369 – adjustments in respect of prior periods 46 (17) 18 Total current tax 2,718 2,376 2,425 Deferred tax (240) (187) (317) Comprising: – deferred tax relating to origination and reversal of temporary differences (174) (29) (184) – deferred tax relating to changes in tax rates (66) (158) (133) 2,478 2,189 2,108 (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 were 17 corporate groups in the FII GLO as at 31 December 2022. 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 Supreme Court gave permission for a number of issues to be appealed in two separate hearings. The first, in February 2020, concerned the time limit for bringing claims. HMRC sought to challenge existing case law. In November 2020, the Supreme Court handed down its judgment. The Supreme Court agreed to overturn existing case law partially but introduced a new test for determining whether claims of this type are in time. The case has been remitted to the High Court to apply that new test to the facts. The second hearing was heard in December 2020 and concerned issues relating to the type of claims BAT is entitled to bring. The judgment from the second hearing was handed down in July 2021. Applying that judgment reduces the value of the FII claim to approximately £0.3 billion, mainly as the result of the application of simple interest and the limitation to claims for advance corporation tax offset against lawful corporation tax charges, which is subject to the determination of the timing issue by the High Court and any subsequent appeal. 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 was heard in July 2018 and judgment has not yet been handed down. The net £0.9 billion held by the Group is higher than the current value of the claim referred to above. 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 within trade and other payables as disclosed in note 25. Any future recognition as income will be treated as an adjusting item, due to the size of the amount, with interest of £33 million for the 12 months to 31 December 2022 (2021: £20 million; 2020: £21 million) accruing on the balance, which was also treated as an adjusting item. The final resolution of all issues in the litigation is likely to take a number of years. The Group made an interim repayment to HMRC of £50 million in 2022 and intends to make further interim repayments in future periods. (c) Factors affecting the taxation charge The taxation charge differs from the standard rate of corporation tax in the UK of 19% for 2022, 2021 and 2020. The major causes of this difference are listed below; 2022 2021 2020 £m % £m % £m % Profit before tax 9,324 9,163 8,672 Less: share of post-tax results of associates and joint ventures (see note 9) (442) (415) (455) 8,882 8,748 8,217 Tax at 19% (2021: 19% and 2020: 19%) on the above 1,688 19.0 1,662 19.0 1,561 19.0 Factors affecting the tax rate: Tax at standard rates other than UK corporation tax rate 397 4.5 319 3.6 368 4.5 Other national tax charges 244 2.7 184 2.1 142 1.7 Permanent differences 83 0.9 87 1.0 20 0.3 Overseas withholding taxes 156 1.8 189 2.2 155 1.9 Double taxation relief on UK profits (26) (0.3) (23) (0.3) (22) (0.3) Unutilised/(utilised) tax losses 12 0.1 (10) (0.1) 5 0.1 Adjustments in respect of prior periods 41 0.5 (43) (0.5) 18 0.2 Deferred tax relating to changes in tax rates (66) (0.7) (158) (1.8) (133) (1.6) Additional net deferred tax (credits)/charges (51) (0.6) (18) (0.2) (6) (0.1) 2,478 27.9 2,189 25.0 2,108 25.7 (d) Adjusting items included in taxation In 2022, adjusting items in taxation included a net credit of £27 million mainly relating to the revaluation of deferred tax liabilities arising on trademarks recognised in the Reynolds American acquisition in 2017 due to changes in U.S. state tax rates and a potential clawback of tax reliefs arising on the closure of the Group's factory in Switzerland. In 2021, adjusting items in taxation included a net credit of £91 million mainly relating to the revaluation of deferred tax liabilities arising on trademarks recognised in the Reynolds American acquisition in 2017 due to changes in U.S. state tax rates. In 2020, adjusting items in taxation included a net credit of £35 million mainly relating to the release of a provision regarding the application of overseas withholding tax, the revaluation of deferred tax liabilities arising on trademarks recognised in the Reynolds American acquisition in 2017 due to changes in U.S. state tax rates and the excise dispute in Russia (note 6(g)). (e) Tax on adjusting items In addition, the tax on adjusting items, separated between the different categories, as per note 11, amounted to £176 million (2021: £119 million; 2020: £287 million). The adjustment to the adjusted earnings per share (note 11) also includes £5 million (2021: £6 million; 2020: £8 million) in respect of the non-controlling interests’ share of the adjusting items net of tax. (f) Tax on items recognised directly in other comprehensive income 2022 £m 2021 £m 2020 £m Current tax (6) (4) (5) Deferred tax (106) (110) 23 (Charged)/credited to other comprehensive income (112) (114) 18 (g) Tax on items recognised directly in equity In relation to the perpetual hybrid bonds issued on 27 September 2021 (note 22(d)), tax relief of £11 million (2021: £5 million) has been recognised, principally in relation to the coupon incurred. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Earnings per share | 11 Earnings per share Earnings used in the basic, diluted and headline earnings per share calculation represent the profit attributable to the ordinary equity shareholders after deducting amounts representing the coupon on perpetual hybrid bonds on a pro-rata basis regardless of whether coupons have been deferred or paid in the period. Below is a reconciliation of the earnings used to calculate earnings per share: 2022 £m 2021 £m 2020 £m Earnings attributable to owners of the parent 6,666 6,801 6,400 Coupon on perpetual hybrid bonds (60) (15) — Tax on coupon on perpetual hybrid bonds 11 3 — Earnings 6,617 6,789 6,400 Below is a reconciliation from basic to diluted earnings per share: 2022 2021 2020 Earnings Weighted Earnings Earnings Weighted Earnings Earnings Weighted Earnings Basic earnings per share (ordinary shares of 25p each) 6,617 2,256 293.3 6,789 2,287 296.9 6,400 2,286 280.0 Share options — 11 (1.4) — 10 (1.3) — 9 (1.1) Diluted earnings per share 6,617 2,267 291.9 6,789 2,297 295.6 6,400 2,295 278.9 Adjusted earnings per share calculation Earnings have been affected by a number of adjusting items, which are described in notes 3 to 10. 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. Basic 2022 2021 2020 Notes Earnings Earnings Earnings Earnings Earnings Earnings Basic earnings per share 6,617 293.3 6,789 296.9 6,400 280.0 Effect of amortisation and impairment of goodwill, trademarks and similar intangibles 4 285 12.6 363 15.9 548 24.0 Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles 10(e) (67) (3.0) (71) (3.1) (77) (3.4) Effect of Brazil VAT case 5,6(a) (460) (20.4) — — — — Tax on Brazil VAT case 10(e) 72 3.2 — — — — Effect of disposal of subsidiaries 6(f) (6) (0.3) 358 15.7 — — Effect of excise and VAT disputes 6(g) — — 26 1.1 (40) (1.7) Tax on excise and VAT disputes 10(d) — — (3) (0.1) 14 0.6 Effect of charges in respect of DOJ and OFAC investigations 6(h) 450 19.9 — — — — Effect of charges in respect of Nigerian FCCPC case 6(i) 79 3.5 — — — — Effect of impairment on held-for-sale assets and associated costs 6(j) 612 27.2 — — — — Tax effect of impairment of assets held-for-sale and associated costs 10(e) (10) (0.4) — — — — Effect of restructuring and integration costs 7 771 34.2 150 6.5 408 17.8 Tax and non-controlling interests on restructuring and integration costs 10(d)(e) (116) (5.1) (39) (1.7) (64) (2.8) Other adjusting items 3,6(d) 154 6.8 19 0.8 487 21.2 Tax effect on other adjusting items 10(e) (37) (1.6) (5) (0.2) (104) (4.5) Effect of early repurchase of bonds 8(b) — — — — 142 6.2 Tax effect of early repurchase of bonds 10(e) — — — — (32) (1.4) Effect of interest on FII GLO settlement and other 8(b) 34 1.5 55 2.4 11 0.5 Tax effect of interest on FII GLO settlement and other 10(e) (6) (0.3) — — (4) (0.2) Effect of associates' adjusting items net of tax 9(a) 92 4.1 12 0.5 (13) (0.6) Deferred tax relating to changes in tax rates 10(d) (44) (2.0) (98) (4.3) (21) (0.9) Effect of retrospective guidance on WHT 10(d) — — — — (42) (1.8) Adjusted earnings per share (basic) 8,420 373.2 7,556 330.4 7,613 333.0 Diluted 2022 2021 2020 Notes Earnings Earnings Earnings Earnings Earnings Earnings Diluted earnings per share 6,617 291.9 6,789 295.6 6,400 278.9 Effect of amortisation and impairment of goodwill, trademarks and similar intangibles 4 285 12.6 363 15.8 548 23.9 Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles 10(e) (67) (3.0) (71) (3.1) (77) (3.4) Effect of Brazil VAT case 5,6(a) (460) (20.3) — — — — Tax on Brazil VAT case 10(e) 72 3.2 — — — — Effect of disposal of subsidiaries 6(f) (6) (0.3) 358 15.6 — — Effect of excise and VAT disputes 6(g) — — 26 1.1 (40) (1.7) Tax on excise and VAT disputes 10(d) — — (3) (0.1) 14 0.6 Effect of charges in respect of DOJ and OFAC investigations 6(h) 450 19.9 — — — — Effect of charges in respect of Nigerian FCCPC case 6(i) 79 3.5 — — — — Effect of impairment on held-for-sale assets and associated costs 6(j) 612 26.8 — — — — Tax effect of impairment of assets held-for-sale and associated costs 10(e) (10) (0.4) — — — — Effect of restructuring and integration costs 7 771 34.0 150 6.6 408 17.7 Tax and non-controlling interests on restructuring and integration costs 10(d)(e) (116) (5.1) (39) (1.7) (64) (2.8) Other adjusting items 3,6(d) 154 6.8 19 0.8 487 21.2 Tax effect on other adjusting items 10(e) (37) (1.6) (5) (0.2) (104) (4.5) Effect of early repurchase of bonds 8(b) — — — — 142 6.2 Tax effect of early repurchase of bonds 10(e) — — — — (32) (1.4) Effect of interest on FII GLO settlement and other 8(b) 34 1.5 55 2.4 11 0.5 Tax effect of interest on FII GLO settlement and other 10(e) (6) (0.3) — — (4) (0.2) Effect of associates' adjusting items net of tax 9(a) 92 4.1 12 0.5 (13) (0.6) Deferred tax relating to changes in tax rates 10(d) (44) (1.9) (98) (4.3) (21) (0.9) Effect of retrospective guidance on WHT 10(d) — — — — (42) (1.8) Adjusted earnings per share (diluted) 8,420 371.4 7,556 329.0 7,613 331.7 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 1/2021 ‘Headline Earnings’, as issued by the South African Institute of Basic 2022 2021 2020 Earnings Earnings Earnings Earnings Earnings Earnings Basic earnings per share 6,617 293.3 6,789 296.9 6,400 280.0 Effect of impairment of intangibles, property, plant and equipment, associates and assets held-for-sale 429 19.0 138 6.0 465 20.3 Tax and non-controlling interests on intangibles, property, plant and equipment, associates and assets held-for-sale (77) (3.4) (42) (1.8) (74) (3.3) Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (21) (0.9) (10) (0.4) (26) (1.1) Tax and non-controlling interests on disposal of property, plant and equipment, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback 5 0.2 2 0.1 8 0.3 Effect of impairment of subsidiaries 548 24.2 83 3.6 — — Tax on impairment of subsidiaries (10) (0.4) — — — — Effect of foreign exchange reclassification from reserves to the income statement – Subsidiaries 6 0.3 291 12.7 — — – Associates (1) — (2) (0.1) — — Issue of shares and change in shareholding in associate 3 0.1 (6) (0.3) (17) (0.7) Headline earnings per share (basic) 7,499 332.4 7,243 316.7 6,756 295.5 Diluted 2022 2021 2020 Earnings Earnings Earnings Earnings Earnings Earnings Diluted earnings per share 6,617 291.9 6,789 295.6 6,400 278.9 Effect of impairment of intangibles, property, plant and equipment, associates and assets held-for-sale 429 18.9 138 6.0 465 20.3 Tax and non-controlling interests on intangibles, property, plant and equipment, associates and assets held-for-sale (77) (3.4) (42) (1.8) (74) (3.3) Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (21) (0.9) (10) (0.4) (26) (1.1) Tax and non-controlling interests on disposal of property, plant and equipment, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback 5 0.2 2 0.1 8 0.3 Effect of impairment of subsidiaries 548 24.1 83 3.6 — — Tax on impairment of subsidiaries (10) (0.4) — — — — Effect of foreign exchange reclassification from reserves to the income statement – Subsidiaries 6 0.3 291 12.6 — — – Associates (1) — (2) (0.1) — — Issue of shares and change in shareholding in associate 3 0.1 (6) (0.3) (17) (0.7) Headline earnings per share (diluted) 7,499 330.8 7,243 315.3 6,756 294.4 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible assets | 12 Intangible assets (revised) (a) Overview of intangible assets 2022 Goodwill Computer Trademarks Assets in Total 1 January Cost 43,194 1,266 74,227 156 118,843 Accumulated amortisation and impairment (858) (2,360) (3,218) Net book value at 1 January 43,194 408 71,867 156 115,625 Differences on exchange 4,762 5 9,033 2 13,802 Additions – internal development — — — 37 37 – separately acquired — — — 85 85 Reallocations — 96 29 (125) — Amortisation charge — (128) (309) — (437) Impairment — (3) (10) (11) (24) Disposals — — (7) — (7) Held for sale — (4) — (2) (6) 31 December Cost 47,956 1,379 83,454 153 132,942 Accumulated amortisation and impairment (1,005) (2,851) (11) (3,867) Net book value at 31 December 47,956 374 80,603 142 129,075 2021 Goodwill Computer Trademarks Assets in Total 1 January Cost 43,319 1,307 73,598 120 118,344 Accumulated amortisation and impairment (885) (2,116) (3,001) Net book value at 1 January 43,319 422 71,482 120 115,343 Differences on exchange (68) (3) 640 — 569 Additions – internal development — — — 139 139 – separately acquired — — 60 33 93 Reallocations — 118 18 (136) — Amortisation charge — (116) (319) — (435) Impairment (57) (13) (14) — (84) 31 December Cost 43,194 1,266 74,227 156 118,843 Accumulated amortisation and impairment (858) (2,360) (3,218) Net book value at 31 December 43,194 408 71,867 156 115,625 (b) Goodwill Goodwill of £47,956 million (2021: £43,194 million) is included in intangible assets in the balance sheet of which the following are the significant acquisitions: Reynolds American £37,181 million (2021: £33,021 million); Rothmans Group £4,704 million (2021: £4,408 million); Imperial Tobacco Canada £2,460 million (2021: £2,345 million); ETI (Italy) £1,461 million (2021: £1,384 million) and ST (principally Scandinavia) £1,102 million (2021: £1,043 million). The principal allocations of goodwill in the Rothmans’ acquisition are to the Europe cash generating unit and the South African cash generating unit, with the remainder mainly relating to other operations in APMEA. During 2022, there was no goodwill impairment (2021: £57 million) as explained in note 12(e)(iv) below. (c) Trademarks and similar intangibles Trademarks and similar intangibles with indefinite lives The net book value of trademarks and similar intangibles with indefinite lives is £78,228 million (2021: £69,475 million) and relates to the acquisition of Reynolds American. The trademarks acquired, including Newport, Camel, Natural American Spirit, Grizzly and Pall Mall, all of which are part of the Group’s Strategic Portfolio of key brands, form the core focus of the U.S. business and receive significant support in the form of dedicated internal resources, forecasting and, where appropriate, marketing investment. These trademarks have significant market share and positive cashflow growth expectations. There are no regulatory or contractual restrictions on the use of the trademarks, and there are no plans by management to significantly redirect resources elsewhere. Consequently, in the view of management, these trademarks do not have a foreseeable and definite end to their ability to generate future cash flows and hence are not amortised. Trademarks and similar intangibles with definite lives The majority of trademarks and similar intangibles with definite lives relate to trademarks acquired in previous years. These trademarks are amortised over their expected useful lives, which do not exceed 20 years. Included in the net book value of trademarks and similar intangibles are trademarks relating to the acquisition of Reynolds American £2,071 million (2021: £2,038 million). (d) Computer software and assets in the course of development Included in computer software and assets in the course of development are internally developed assets with a carrying value of £423 million (2021: £517 million). The costs of internally developed assets include capitalised expenses of employees working full time on software development projects, third-party consultants and software licence fees from third-party suppliers. The Group has £1 million of future contractual commitments (2021: £2 million) related to intangible assets. (e) Impairment testing (i) Overview a. Estimation uncertainty As described in note 1, the critical accounting estimates used in the preparation of the consolidated financial statements include the review of asset values, especially indefinite life assets such as goodwill and certain trademarks and similar intangibles. There is significant judgement with regard to assumptions and estimates involved in the forecasting of future cash flows, which form the basis of the assessment of the recoverability of these assets, with the effect that the value-in-use of calculations incorporate estimation uncertainty, particularly for certain assets held in relation to the Canadian and U.S. markets. b. Impact of climate change The impact of climate change on the future cash flows has been considered for scenarios analysed in terms of future access to tobacco and nicotine. The climate change scenario analyses – conducted in line with TCFD recommendations – undertaken this year did not identify any material financial impact. (ii) Impairment testing – Trademarks and similar intangibles with indefinite lives (brands) The trademarks and similar intangibles with indefinite lives (brands) have been tested for impairment on a value-in-use basis. The value-in-use calculations use cash flows based on detailed brand budgets prepared by management using projected sales volumes and pricing (net revenue) and projected brand profitability covering a five-year horizon and, thereafter, grown into perpetuity. Corporate costs are allocated to the brand budgets based on either specific allocations, where appropriate, or based on revenue. The discount rates and long-term growth rates applied to the brand value-in-use calculations have been determined by local management based on experience, specific market and brand trends and pricing and cost expectations. As the trademarks and similar intangibles with indefinite lives relate to the acquisition of Reynolds American, the brand budgets used in the value-in-use calculations have also been incorporated into the budget information used in the impairment testing of Reynolds American goodwill. 2022 2021 Carrying Pre-tax Carrying Pre-tax Indefinite-lived intangibles Newport 33,236 9.2 29,517 9.9 Camel 14,058 8.9 12,485 9.4 Pall Mall 6,252 8.6 5,552 8.8 Natural American Spirit 13,019 8.6 11,562 8.7 Camel Snus 1,355 8.6 1,203 8.7 Grizzly 10,308 8.6 9,155 8.7 Total 78,228 69,474 Note: * The pre-tax discount rates for all indefinite-lived intangibles have declined in comparison to 2021 primarily as the result of a change in U.S. federal tax rate assumption in 2022. On a post-tax basis the discount rates for all the indefinite-lived intangibles have increased when compared with 2021, except for Newport which, as the most exposed brand to mentholated products, saw a greater shift in risk for the discount rate into the cash flows, in 2022, in relation to the proposed product standard to prohibit menthol as a characterising flavour in cigarettes (outlined further in note 12(e)(v). Refer to note 12(e)(v) for further information on brand impairment testing. (iii) Cash-generating units and information on goodwill impairment testing In 2022, goodwill was allocated for impairment testing purposes to 17 (2021: 17) individual cash-generating units (CGUs) – one in the U.S. 2022 2021 Carrying Pre-tax Carrying Pre-tax Cash-generating unit Reynolds American 37,181 8.8 33,021 8.4 Europe 5,670 7.5 5,362 6.1 Canada 2,460 19.4 2,345 19.3 Australia 755 8.2 719 6.8 South Africa* 541 10.4 512 14.6 Singapore 398 7.9 352 8.2 GTR 264 7.6 233 7.7 Malaysia 240 11.4 226 11.2 Peru* 103 7.5 91 10.7 Other 344 8.0 333 6.8 Total 47,956 43,194 Note: * Due to difficult trading conditions and uncertainties resulting from the COVID-19 pandemic in the prior year, a more granular market-led approach was adopted in formulating the CGUs financial forecast and value-in-use assumptions. However, given these risk factors have now dissipated, the CGUs have been assessed through the established Group approach in the current year. Included within ‘Other’ above is goodwill arising on various acquisitions that have been allocated to eight cash-generating units which are, individually, insignificant. The pre-tax discount rate represents the weighted average pre-tax discount rate. 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 projected sales volumes and pricing (net revenues), 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 is used purely for the impairment testing of goodwill under IAS 36 Impairment of Assets and does not reflect long-term planning assumptions used by the Group for investment proposals or for any other assessments. Post-tax discount rates were used in the impairment testing, 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 relevant local (or comparable) 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. This applies to all CGUs with the exception of Reynolds which had its discount rate independently determined based on its own weighted average cost of capital and U.S. market-related premiums. In general, an overall increase in post-tax discount rates in 2022 has been observed, primarily driven by higher interest rates and bond yields. In relation to Reynolds, this has been partially offset by a reduction in the risk-adjustment incorporated into the 2021 discount rates which has now been incorporated directly into the cash flows. 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, as well as pricing and cost expectations. These have been endorsed by Group management as part of the consolidated Group’s budget. (iv) Impairment testing – Goodwill (excluding Reynolds American and Canada) 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 3% (2021: 3%) in years 2 to 10, after which a growth rate of 1% (2021: 1%) having been assumed as the long-term volume decline is more than offset by pricing to drive revenue growth. 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. For the Malaysian cash-generating unit, as a result of regulatory and macro-economic conditions, the above assumptions were amended to reflect the short- to medium-term plans of the country or area management spanning up to a period of five years after which a long-term growth rate of 0% has been assumed. For the Malaysian cash-generating units headroom to reduce to £nil, the forecasted cash flows would need to reduce by 11.5% year on year or the pre-tax discount rate would have to increase by 1.5%, both of which management does not consider to be reasonably possible. The Group will continue to monitor Malaysia's performance going forward to identify if any impairment triggers materialise. South Africa is positively recovering from the COVID-19 pandemic and the five-month sales ban in 2020, with the forecasted cashflows prepared to reflect the continued expected recovery with no further indication of impairment. The Group had recognised an impairment charge of £54 million in 2021 for its Peruvian cash generating unit due to continued difficult trading conditions as a consequence of the COVID-19 pandemic and its impact on the forecasted operating cashflows which partially reduced the carrying value of goodwill to £91 million. As a result of the assessment, in 2022, no further deterioration in performance was identified requiring further impairment consideration. In 2021, the Group also impaired in full the goodwill of Myanmar resulting in an impairment charge of £3 million. Following the application of a reasonable range of sensitivities to all cash-generating units, there was no reasonably possible scenario identified that would lead to a potential impairment charge. (v) Impairment testing – Reynolds American Goodwill relating to Reynolds American and the indefinite-lived brand intangibles On 28 April 2022, the FDA announced a proposed product standard to prohibit menthol as a characterising flavour in cigarettes, consistent with their previously stated timeline. Management notes that the proposal of a product standard does not itself constitute a ban on menthol in cigarettes given the proposed standard is still required to go through the established U.S. comprehensive rule-making process, the timetable and outcome for which was, and remains, uncertain. Further to this, on 21 June 2022, the FDA announced plans to develop a proposed product standard that would establish a maximum nicotine level in cigarettes and certain other combustible tobacco products to reduce addictiveness. Management notes that the FDA announcement does not itself constitute restrictions on nicotine levels in cigarettes, and any proposed regulation of nicotine in cigarettes would need to be introduced through the established U.S. comprehensive rule-making process, the timetable and outcome for which was, and remains, uncertain. Management do not deem this to be a new development but rather a continuation of the rulemaking process that the FDA initiated in 2017 that was later put on hold. In December 2022, the sale of most tobacco products with characterising flavours (including menthol) other than tobacco were banned in the state of California. The impact of such ban does not present an indicator of a potential impairment for Reynolds American goodwill or any of the indefinite-lived intangibles. The Group has a long-standing track record of managing regulatory shifts and, in the event of regulatory change, the Group remains confident in its ability to navigate that environment successfully. Since 2018, having considered the combination of the risk of implementation and impact of any change in regulations, the Group has not recognised any impairment on either the Newport or Camel brands or the Reynolds American cash-generating unit. In 2022, the value-in-use calculations have been determined based on probability weighted scenarios to derive a risk-adjusted cash flow forecast applied within the valuations. Management incorporated the following scenarios into the valuation: – Management’s internal forecast (risk of the proposed product standard to prohibit menthol as a characterising flavour in cigarettes incorporated into the long-term growth rate). – Assuming a final product standard to prohibit menthol as a characterising flavour in cigarettes becomes effective in the final year of the discrete forecast period (Management’s best estimate of the ban’s effective date, if a final rule is published). – No product standard to prohibit menthol as a characterising flavour in cigarettes ultimately ends up being introduced. This is a change in valuation methodology from 2021 where management prepared one cash flow forecast with the potential impact/risk of a proposed product standard to prohibit menthol as a characterising flavour in cigarettes incorporated into the long-term growth rate and discount rate. This change was a result of the timing of a proposed product standard narrowing given we have moved one year further forward. The value-in-use calculations for brands, as described in note 12(e)(ii) above, have been incorporated in the probability weighted scenarios used in the Reynolds American goodwill model. The value-in-use calculations have been prepared based on a five-year risk-adjusted cash flow forecast which assumes a long-term volume decline of cigarettes generally offset by pricing. After this forecast, a probability weighted growth rate of 1.05% has been assumed for the Reynolds American cash-generating unit, 0.89% for Newport, 0.93% for Camel, and 1.0%for all remaining indefinite life intangibles. The excess of value-in-use earnings over the carrying values (headroom) of the Reynolds American cash-generating unit and the Newport, Camel, Pall Mall, Grizzly and Camel Snus brand intangibles would be reduced to nil if the following individual changes were made to the key assumptions used in the impairment model. Reynolds American goodwill Newport Camel Pall Mall Grizzly Camel Snus Assumptions Decrease in revenue by* 6.1 21.0 28.6 14.1 8.9 5.1 Increase in pre-tax discount rate by 0.8 3.4 5.5 2.2 0.8 0.4 Decrease in long-term growth rate by 0.8 4.0 7.0 2.4 1.0 0.5 Note: * Revenue sensitivities are performed in isolation and do not include the removal of the corresponding variable cost of sales. The change in revenue assumption is based on revenue in the five-year forecast reducing by the stated percentage in each year without any future recovery and assumes that other assumptions are not changed. Management concluded that such reduction would not be reasonably possible for either Reynolds American goodwill or the indefinite-lived intangibles. As a result of a reduction in the excess of value-in-use earnings over the carrying values (headroom) on Reynolds American goodwill in 2022, reasonably possible changes to key assumptions, within the value-in-use model, could result in an impairment charge. The following movements in key assumptions are deemed to be reasonably possible and would result in the following: Current headroom (£m) Assumptions Reasonable possible change Impact Possible impairment 11,826 Pre-tax discount rate Increase of 0.93% (13,355) (1,529) Long-term growth rates Decrease of 0.85% (13,036) (1,210) Reasonably possible changes to key assumptions, within the value-in-use model, which could result in an impairment charge were also identified for Camel Snus. The following movements in key assumptions are deemed to be reasonably possible and would result in the following: Current headroom (£m) Assumptions Reasonable possible change Impact Possible impairment 95 Pre-tax discount rate Increase of 0.94% (165) (70) Long-term growth rates Decrease of 1.00% (175) (80) The sensitivities relating to the pre-tax discount rates above are based upon a change in the risk-free rate only, as a directional potential impact. It is recognised that such changes may arise in a combination of assumptions within the discount rate calculation. Apart from Camel Snus, management concluded that no reasonably possible scenarios were identified that resulted in any of the indefinite-lived intangibles requiring an impairment charge. However, it is noted that if adverse movement occurred in a combination of the above key assumptions for the Pall Mall brand intangible this may result in an impairment charge. (vi) Impairment testing – Canada Goodwill relating to Imperial Tobacco Canada Ltd (ITCAN) In March 2019, ITCAN obtained an Initial Order from the Ontario Superior Court of Justice granting it protection under the Companies’ Creditors Arrangement Act (CCAA). If the CCAA creditor protection were to end, significant liabilities might crystallise. As a consequence, to reflect the risk to future operating cash flows, the value-in-use calculations have been prepared based on a five-year cash flow forecast, after which a growth rate of -2.5% and a pre-tax discount rate of 19.4% (2021: 19.3%) have been assumed. Further information on the Quebec Class Actions and CCAA can be found in note 31. In addition to the increase in discount rate, a reasonable range of sensitivities was applied to the value-in-use calculation, and there was no risk of an impairment charge identified. The excess of value-in-use earnings over the carrying values (headroom) of the ITCAN goodwill would be reduced to nil if the following individual changes, none of which are considered reasonably possible by management, were made to the key assumptions used in the impairment model. The change in revenue assumption is based on combustibles revenue in the five-year forecast reducing by 20.6% in each year and assumes that other assumptions are not changed. Canada Assumptions Decrease in revenue by 20.6 Increase in pre-tax discount rate by 10.2 Note: * Revenue sensitivities are performed in isolation and do not include the removal of the corresponding variable cost of sales. The £2,460 million of goodwill relating to ITCAN on the Group’s balance sheet at 31 December 2022 will continue to be reviewed on a regular basis. Any future impairment charge would result in a non-cash charge to the income statement that will be treated as an adjusting item. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 13 Property, plant and equipment (a) Overview of property, plant and equipment, including right-of-use assets 2022 Freehold Leasehold Plant, Plant, Assets in the Total 1 January Cost 1,421 847 5,750 247 706 8,971 Accumulated depreciation and impairment (388) (370) (3,130) (130) (4,018) Net book value at 1 January 1,033 477 2,620 117 706 4,953 Differences on exchange 68 30 164 9 48 319 Additions – right-of-use assets — 117 — 117 — 234 – separately acquired — — 32 — 471 503 Reallocations 44 21 374 2 (441) — Depreciation (36) (112) (323) (68) — (539) Impairment (62) (39) (210) (4) (4) (319) Right-of-use assets - reassessments, modifications and terminations — (16) — 4 — (12) Disposals (4) (2) (15) — 3 (18) Net reclassifications as held-for-sale (41) (10) (187) — (16) (254) 31 December Cost 1,475 940 5,962 362 767 9,506 Accumulated depreciation and impairment (473) (474) (3,507) (185) (4,639) Net book value at 31 December 1,002 466 2,455 177 767 4,867 2021 Freehold Leasehold Plant, Plant, Assets in the Total 1 January Cost 1,518 798 5,807 217 764 9,104 Accumulated depreciation and impairment (444) (315) (3,175) (110) (4,044) Net book value at 1 January 1,074 483 2,632 107 764 5,060 Differences on exchange (23) (22) (135) (5) (18) (203) Additions – right-of-use assets — 88 — 76 — 164 – separately acquired — 1 45 — 508 554 Reallocations 44 51 441 1 (537) — Depreciation (35) (110) (303) (57) — (505) Impairment (4) (2) (37) — (11) (54) Right-of-use assets - reassessments, modifications and terminations — (11) — (5) — (16) Disposals (7) (1) (12) — — (20) Net reclassifications as held-for-sale (16) — (11) — — (27) 31 December Cost 1,421 847 5,750 247 706 8,971 Accumulated depreciation and impairment (388) (370) (3,130) (130) (4,018) Net book value at 31 December 1,033 477 2,620 117 706 4,953 Refer to notes 4 and 7 for more information on property, plant and equipment impairments. The £254 million (2021: £27 million) of assets reclassified as held-for-sale in 2022 primarily relates to the Group's operations in Russia and Belarus and in 2021, the Group's Iranian subsidiary, BAT Pars, as disclosed in note 27(d). ESG Investments: Included in additions in 2022 is an amount of £27.1 million related to investments directed towards equipment to drive energy efficiency and renewable energy generation, water recycling and efficiency projects, waste reduction, and product innovation-led specification improvements to drive recyclability and reduce waste. The Group has £80 million of future contractual commitments (2021: £90 million) related to property, plant and equipment. (b) Right-of-use assets In accordance with IFRS 16 Leases , the right-of-use assets related to leased properties have been included in the asset class ‘Leasehold Property’ (note 13(c)) and other right-of-use assets have been reported under ‘Plant, equipment and other leased’. The Group leases various offices, warehouses, retail spaces, equipment and vehicles through its subsidiaries across the globe. Arrangements are entered into in the course of ordinary business, and lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions reflecting local commercial practice. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. Assets representing ‘plant, equipment and other’ relate to leases of various assets including tobacco vending machines, industrial equipment and distribution vehicles in Brazil, Japan, Pakistan, Poland, Romania, Switzerland, the U.S. and other countries. (c) Leasehold property As of 31 December 2022, the Group holds £152 million (2021: £165 million) of leasehold properties acquired and another £314 million (2021: £312 million) of right-of-use leased properties. Assets representing ‘leasehold property’ relate to leases in respect of offices, retail space, warehouses and manufacturing facilities occupied by Group subsidiaries and include property leases with lease terms of more than five years in Bangladesh, Brazil, China, Germany, Italy, Mexico, Romania, Singapore, the UK and the U.S., amongst other countries. In addition, capitalised expenditure representing leasehold improvements is included in this asset class. 2022 £m 2021 £m Leasehold land and property comprises - net book value of long leasehold 15 14 - net book value of short leasehold 451 463 466 477 2022 Leasehold property net book value movements for the year ended 31 December 2022 Net book value at 1 January Differences on exchange Depreciation and impairment Other net movements * £m Net book value at 31 December - Property acquired (IAS 16) 165 11 (41) 17 152 - Right-of-use properties (IFRS 16) 312 19 (110) 93 314 477 30 (151) 110 466 2021 Leasehold property net book value movements for the year ended 31 December 2021 Net book value at 1 January Differences on exchange Depreciation and impairment Other net movements* Net book value at 31 December - Property acquired (IAS 16) 132 (8) (13) 54 165 - Right-of-use properties (IFRS 16) 351 (14) (99) 74 312 483 (22) (112) 128 477 Note: * Property acquired (IAS 16 Property, plant and equipment ) other net movements for leasehold improvements represent additions (directly acquired and/or transferred from assets in the course of construction) net of disposals, whereas other net movements for right-of-use properties (IFRS 16) relate to new leases net of reassessments, modifications and terminations as reported in the Property, plant and equipment movement table in note 13(a). (d) Freehold property As of 31 December 2022, the Group owns freehold property amounting to £1,002 million (2021: £1,033 million), representing factories, warehouses and office buildings together with adjoining land, mainly in the U.S., the UK, Bangladesh, Indonesia and South Korea. 2022 £m 2021 £m Cost of freehold land within freehold property on which no depreciation is provided 246 242 |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2022 | |
Investments in subsidiaries, joint ventures and associates reported in separate financial statements [abstract] | |
Investments in associates and joint ventures | 14 Investments in associates and joint ventures 2022 £m 2021 £m 1 January 1,948 1,796 Total comprehensive income (note 9) 467 412 Dividends (438) (392) Additions (note 27(c)) 39 130 Other equity movements 4 2 31 December 2,020 1,948 Non-current assets 1,400 1,286 Current assets 1,138 1,144 Non-current liabilities (75) (83) Current liabilities (443) (399) 2,020 1,948 ITC Ltd. (Group’s share of the market value is £12,059 million (2021 £7,839 million)) 1,865 1,759 Other listed associates (Group’s share of the market value is £206 million (2021: £232 million)) 106 154 Unlisted associates 49 35 2,020 1,948 The principal associate undertaking of the Group is ITC Ltd. (ITC). Included within the dividends amount of £438 million As explained in note 27(c), acquisitions during the year included mostly investments in Sanity Group GmbH and Steady State LLC. In 2021, acquisitions largely related to investments in Organigram Holdings Inc. Organigram On 11 March 2021, the Group announced a strategic collaboration agreement with Organigram Inc., a wholly owned subsidiary of publicly traded Organigram Holdings Inc. (collectively, Organigram). Under the terms of the transaction, a Group subsidiary acquired a 19.9% (2022: 19.4%) equity stake in Organigram Holdings Inc. (listed on both the Nasdaq and Toronto Stock Exchange under the symbol ‘OGI’) to become its largest shareholder. The Group’s share of the fair value of net assets acquired included £49 million of intangibles and £30 million of goodwill, representing a strategic premium to enter the legal cannabis market in North America. During 2022, management reassessed the carrying value of the Group’s investment in Organigram Holdings Inc. due to a reduction in the entity's share price being identified as a trigger for a detailed impairment assessment to be undertaken. As part of this exercise, management took into consideration Organigram’s share price, internal value-in-use calculations, external trading multiples and broker forecasts. As a result of this analysis, it was concluded that an impairment charge of £65 million (or £59 million net of tax) was required against the carrying value of the investment in associate, with the recoverable amount as at 31 December 2022 being £73 million (2021: £125 million). Management will continue to monitor the carrying value, in line with IAS 36, over the course of future periods. Tisak d.d. The Group’s investment in Tisak d.d. (Tisak) was acquired as part of the TDR Group in 2015. 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 had the right to reacquire the additional shareholding in Tisak. As a consequence of this, while the Group had legal ownership of the additional shareholding, it did not consider that the shares provided any additional equity interest and continued to account for 26% of the equity of Tisak. In 2017, due to the financial difficulties of Agrokor and Tisak, the Group fully impaired this investment resulting in a charge of £27 million to the income statement in that year that was reported as an adjusting item. In July 2018, Agrokor’s creditors approved a settlement plan proposed by Agrokor’s administrators. The settlement plan has not returned any value to the Group, and Tisak was liquidated on 21 September 2021. Charlotte’s Web Holdings Inc. In November 2022, the Group announced a £48 million investment in Charlotte’s Web Holdings, Inc. (Charlotte's Web). Based in Colorado, USA, and listed on the Toronto Stock Exchange, Charlotte’s Web holds a prominent position in innovative hemp extract wellness products. The Group’s investment has been made via a 7-year convertible debenture which is convertible at the Group’s discretion into a non-controlling equity stake in Charlotte’s Web of around 19.9%. As part of the investment agreement, the Group has the right to appoint directors to the Board of Charlotte’s Web. However, given the investment does not give the Group any current right to a share of the earnings or net assets of the investee, the investment has been classified as an investment at fair value through profit and loss (see note 18). On conversion of the loan note, the Group would equity account for its investment. ITC Ltd. ITC is an Indian conglomerate based in Kolkata and maintains a presence in cigarettes, hotels, paper and packaging, agri-business ITC prepares accounts on a quarterly basis with a 31 March year-end. As permitted by IAS 28 Investments in associates and joint ventures , results up to 30 September 2022 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 2022. 2022 £m 2021 £m Non-current assets 4,402 3,889 Current assets 3,465 3,391 Non-current liabilities (233) (231) Current liabilities (1,244) (1,061) 6,390 5,988 Group’s share of ITC Ltd. (2022: 29.19%; 2021: 29.38%) 1,865 1,759 |
Retirement benefit schemes
Retirement benefit schemes | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of defined benefit plans [abstract] | |
Retirement benefit schemes | 15 Retirement benefit schemes The Group operates various funded and unfunded defined benefit schemes, including pension and post-retirement healthcare schemes, and defined contribution pension schemes through its subsidiary undertakings in multiple jurisdictions, with its most significant arrangements being in the U.S., the UK, Canada, Germany, Switzerland and the Netherlands. Together, schemes in these territories account for over 90% of the total underlying obligations of the Group’s defined benefit arrangements and over 70% of the current service cost. Pension 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 U.S. and Canada. The majority of defined benefit schemes allow for the future accrual of benefits. With the exception of arrangements required under local regulations, most of the Group’s arrangements are closed to new entrants. Benefits provided through defined contribution schemes are charged as an expense as payments fall due. The liabilities arising in respect of defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. It is Group policy that all schemes are formally valued at least every three years. Through its defined benefit pension schemes and healthcare benefit schemes, the Group is exposed to a number of risks, including: – Asset volatility: The scheme liabilities are calculated using discount rates set by reference to bond yields. If scheme assets underperform this yield, e.g. due to stock market volatility, this may create a deficit. However, most funded 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. In addition, schemes in the UK and Canada have purchased insurance contracts which exactly match valuation volatility of all or part of the scheme liabilities. – Changes in bond yields: A decrease in corporate bond yields will increase scheme liabilities, although this will be partially offset by an increase in the value of the schemes’ bond holdings, ‘buy-in’ insurance assets or other hedging instruments. – 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 Group has an internal body, the Pensions Executive Committee (PEC), that is chaired by the Finance and Transformation Director. The PEC sets and oversees a set of philosophies, policies and practices in respect of post-employment benefits including, but not limited to, design, funding, investment strategy, risk management and governance. It also reviews significant changes to defined benefit schemes in the countries with the most significant liabilities, and defined contribution schemes in the countries with the most significant costs. Significant changes to defined benefit arrangements include scheme closures to future accrual and risk management exercises such as the ‘buy-in’ and ‘buy-out’ transactions referred to below. A ‘buy-out’ transaction is where a pension scheme derecognises all (or part) of its liabilities, removing it from the balance sheet, by permanently transferring those obligations from the sponsoring employer to a third-party provider and eliminating all further legal or constructive obligation to the pension scheme or to the sponsoring employer. By contrast, with a ‘buy-in’ transaction the scheme liabilities remain on the balance sheet and the sponsoring employer remains responsible for the fulfilment of the pension obligations. However, these obligations are de-risked through the purchase of an insurance product designed to match the underlying cash flows of the pension liability reducing the risks associated with improved longevity and interest and discount rate movements. The Group consequently benefits from the ‘buy-in’ as it reduces the individual scheme’s reliance on the Group for future cash funding requirements. All of the Group’s 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. Responsibility for the governance of these schemes, including specific investment decisions and funding contribution schedules, generally lies with the trustees, or equivalent bodies, of each arrangement. The trustees will usually consist of representatives appointed by both the sponsoring company and the beneficiaries. 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. In addition, as noted below, certain arrangements in the UK and Canada have been de-risked through the purchase of insurance policies. The majority of funded 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. The Group’s contributions to funded defined benefit schemes in 2023 in total are expected to be £110 million compared to £74 million in 2022. U.S. In the U.S., the main funded pension plan is the Reynolds and Affiliates Pension Plan which was formed at the end of 2022 through a merger of the Reynolds American Retirement Plan (PEP) and the Retirement Income Plan for Certain RAI Affiliates (Affiliates). The only funded healthcare scheme is the Brown & Williamson Tobacco Corporation Welfare & Fringe Benefit Plan. Each of the above were established with corporate trustees that are required to run the plan in accordance with the plan’s rules and to comply with all relevant legislation, including the Employee Retirement Income Security Act of 1974. The corporate trustees act as custodians with a committee of local management acting in a fiduciary capacity with regard to investment decisions, risk mitigation and administration of the arrangements. Contributions to the various funded plans are agreed with the named fiduciary, scheme actuaries and the committee of local management after taking account of statutory requirements including the Pension Protection Act of 2006, as amended. Through its U.S. subsidiaries, the Group may make significant contributions, either as required by statutory requirements or at the discretion of the Group, with the aim of maintaining a funding status of at least 90% and remaining fully funded in the long term. During 2022, the Group did not contribute to its funded pension and post-retirement plans in the U.S. and does not expect to do so in 2023. For funded plans in the U.S., the trustees employ 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, to a lesser extent, derivatives to match a significant 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. On 7 October 2021, the Group concluded a transaction affecting portions of the membership of the former PEP and former Affiliates plans referred to above, allowing the Group to fully settle portions of its liability by transferring the obligations to the Metropolitan Tower Life Insurance Company in a buy-out. Approximately US$1.9 billion (£1.4 billion) of plan liabilities were removed from the balance sheet, resulting in a settlement gain of £35 million. A further partial buy-out affecting portions of the membership of the former PEP and former Affiliates plans was concluded on 7 June 2022, with approximately US$1.6 billion (£1.3 billion) of plan liabilities removed from the balance sheet, resulting in a settlement gain of £16 million. At 31 December 2022, the Reynolds and Affiliates Pension Plan was reporting a surplus under IAS 19 in total of £567 million (2021: £463 million). Under the rules of this plan, after assuming the gradual settlement of the plan liabilities over the lives of the arrangements, any surplus would be returnable to the Group in the event of a termination or could otherwise be repurposed for other existing or replacement benefit plans, and accordingly, no surplus restriction has been recognised. United Kingdom In the UK, the main pension arrangement is the British American Tobacco UK Pension Fund (UKPF), which is established under trust law and has a corporate trustee that is required to run the scheme in accordance with the UKPF’s Trust Deed and Rules and to comply with the Pension Scheme Act 1993, Pensions Act 1995, Pensions Act 2004 and all other relevant legislation. With effect from 1 July 2020, UKPF was closed to further accrual of benefits with all active members becoming deferred members. A past service credit was recognised on the difference between the salary increase assumption for active members and the inflation assumption for deferred members at the date of the plan amendment and curtailment of benefits. The formal triennial actuarial valuation of the UKPF was last carried out with an effective date of 31 March 2020. This showed that UKPF had a surplus of £139 million on a Technical Provisions basis, in accordance with the statutory funding objective. The Trustee also has a Long-Term Funding Target to be fully funded on a Solvency Liabilities basis by 2026, and on this basis UKPF had a surplus of £7 million at the valuation date. Under IAS 19, this was reported as a net retirement benefit asset of £143 million (2021: £293 million). Under the UKPF scheme rules, the Trustee does not have a unilateral power to commence a wind up of UKPF, and the Group has recognised a surplus as an unconditional right to a refund assuming the gradual settlement of the UKPF liabilities over the life of the scheme with any future surplus returnable to the Group at the end of the life of the scheme. The funding commitment is not considered onerous, and no additional liabilities or surplus restrictions have been recognised. Following the completion of the valuation noted above, the Trustee and the Group agreed a new Schedule of Contributions with an effective date of 5 October 2020. This schedule was subsequently replaced with a new Schedule with an effective date of 30 March 2021, such that the Group made no contributions in 2021 but was committed to pay £18 million in July 2022 and £18 million in July 2023 as contributions towards further de-risking of UKPF’s assets and securing members’ benefits. The Schedule of Contributions was further amended on 8 August 2022 such that the Group would make no contributions in 2022 but would commit to pay £36 million in July 2023. However, the Trustee retained the right to require an interim payment of up to £18 million at any time before 19 August 2023 should it consider this, in all the circumstances, to be necessary and appropriate. Consequently, no contributions were made to UKPF in 2022 or 2021. On 26 October 2022, the Group entered into an agreement with the Trustee to provide a temporary liquidity facility capped at £40 million for up to two years. The facility will be used for the purposes of providing short-term liquidity for UKPF, should this be necessary, in meeting capital calls in respect of the certain residual investments held by UKPF. Once borrowed and repaid, amounts cannot be redrawn. Interest will accrue on the amounts borrowed under the facility at SONIA plus 2.25% p.a. A commitment charge of 0.56% will be paid by the Trustee. As at 31 December 2022 this facility was undrawn. As part of its risk management strategy, on 31 May 2019, the UK Trustee entered into a buy-in agreement with Pension Insurance Corporation plc (‘PIC’) to acquire an insurance policy with the intent of matching a specific part of UKPF’s future cash flows arising from the accrued pension liabilities of retired and deferred members and improving the security to the UKPF and its members. On an IAS 19 basis, the subsequent fair value of the insurance policy matches the present value of the liabilities being insured. On 19 May 2021, the Trustee entered into an agreement with PIC to acquire a second buy-in policy which involved the transfer of £383 million of assets held by UKPF to PIC, and on 26 October 2022, a third and final buy-in policy was acquired with PIC. £198 million of assets were transferred immediately with £35 million of the premium deferred until 2023 and 2024. As a result of these transactions, approximately 94% of the assets held by UKPF (2021: 84%) are represented by the buy-in contracts, covering 100% of UKPF’s retirement liabilities (2021: 91%). On an IAS 19 basis, the subsequent fair value of the insurance policies matches the present value of the liabilities being insured. For the residual assets held by UKPF, the current allocation is broadly split as 75% in risk reducing assets and 25% in return seeking assets. The return seeking portfolio is invested in illiquid assets which, in the normal course of events, will wind down naturally over time, with their value being realised as the investments mature. This is consistent with the Trustee’s ultimate target which is to be 100% invested in risk reducing assets or matching assets. Given the strong funding position of UKPF as shown in the 31 March 2020 actuarial valuation, the Trustee will continue to review the investment strategy and may look to increase the proportion of risk-reducing or matching assets, commensurate with their ultimate target to further reduce UKPF’s exposure to asset volatility. Other territories 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 £40 million in 2023 and £39 million per annum for the four years after that. Contributions to pension schemes in Canada, Netherlands and Switzerland in total are anticipated to be around £17 million in 2023 and then also around £9 million per annum for the four years after that. For schemes in the Netherlands reporting surpluses of £46 million (2021: £77 million), these surpluses have been recognised as an unconditional right to a refund assuming the gradual settlement of the pension liabilities over the life of the scheme, with any future surplus returnable to the Group at the end of the life of the scheme, and similarly for the surplus relating to schemes in Germany of £150 million (2021: £nil). For schemes in surplus in Canada of £35 million (2021: £27 million), the economic benefit has been calculated as a combination of the expected level of administration expenses which may be charged to the plan assets in accordance with the plan rules, which economically represents a potential surplus refund, and the value of the employer reserve account as defined in legislation, which represents a potential reduction in contributions on an ongoing basis or a surplus refund at the end of the life of the scheme. On 2 September 2021, the Group through its Canadian subsidiaries entered into a buy-in agreement with five insurers to acquire insurance policies that operate as assets of its largest Canadian scheme, the Imasco Pension Fund Society Plan (Society Plan), by transferring plan assets of CAD $766 million (£451 million). The transaction was met entirely from the pension plan assets with no further funding required from the Group. The buy-in covered all the Society Plan’s liabilities in relation to pensioners and deferred members as well as the pensions accrued up to 31 December 2021 for active members. The Group consequently benefits from the buy-in as it reduces the Society Plan’s reliance on the Group for future cash funding requirements. For the residual assets, the Society Plan is 100% invested in risk reducing assets, consistent with the Canadian subsidiary’s ultimate de-risking target. Unfunded arrangements 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, including UK-based Defined Benefit and Defined Contribution Unapproved Unfunded Retirement Benefit Schemes (DB UURBS and DC UURBS respectively). The DC UURBS credits accrued in the year are increased in line with the Company’s Weighted Average Cost of Debt and the scheme is therefore treated as a defined benefit scheme under IAS 19. For unfunded pension schemes in the U.S. and UK, 50% of the liabilities reported at year-end are expected to be settled by the Group within 10 years, 29% between 10 and 20 years, 14% between 20 and 30 years, and 7% thereafter. For unfunded healthcare schemes in the U.S. and Canada, 71% of the liabilities reported at year-end are expected to be settled by the Group within 10 years, 23% between 10 and 20 years, 5% between 20 and 30 years, and 1% thereafter. The amounts recognised in the balance sheet are determined as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Present value of funded scheme liabilities (6,310) (9,859) (205) (225) (6,515) (10,084) Fair value of funded scheme assets 7,271 10,644 153 172 7,424 10,816 961 785 (52) (53) 909 732 Unrecognised funded scheme surpluses (61) (16) — — (61) (16) 900 769 (52) (53) 848 716 Present value of unfunded scheme liabilities (387) (555) (410) (482) (797) (1,037) 513 214 (462) (535) 51 (321) The above net asset/(liability) is recognised in the balance sheet as follows: – retirement benefit scheme liabilities (483) (702) (466) (537) (949) (1,239) – retirement benefit scheme assets 996 916 4 2 1,000 918 513 214 (462) (535) 51 (321) The net assets/(liabilities) of funded pension schemes by territory are as follows: Liabilities Assets Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m – U.S. (1,552) (3,378) 2,046 3,748 494 370 – UK (2,114) (3,357) 2,256 3,645 142 288 – Germany (711) (913) 861 896 150 (17) – Canada (574) (706) 613 724 39 18 – Netherlands (693) (769) 739 846 46 77 – Switzerland (279) (317) 308 311 29 (6) – Rest of Group (387) (419) 448 474 61 55 Funded schemes (6,310) (9,859) 7,271 10,644 961 785 Of the Group’s unfunded pension schemes, 47% (2021: 57%) relate to arrangements in the UK and 39% (2021: 32%) relate to arrangements in the U.S., while 86% (2021: 85%) of the Group’s unfunded healthcare arrangements relate to arrangements in the U.S. The amounts recognised in the income statement are as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Defined benefit schemes Service cost – current service cost 50 60 1 2 51 62 – past service credit, curtailments and settlements (14) (29) 1 — (13) (29) Net interest on the net defined benefit liability – interest on scheme liabilities 224 226 23 19 247 245 – interest on scheme assets (240) (226) (6) (5) (246) (231) – interest on unrecognised funded scheme surpluses 1 1 — — 1 1 21 32 19 16 40 48 Defined contribution schemes 93 91 — — 93 91 Total amount recognised in the income statement (note 3) 114 123 19 16 133 139 The above charges are recognised within employee benefit costs in note 3 and include a credit of £9 million in 2022 (2021: £23 million) in respect of settlements, past service costs and defined contribution costs reported as part of the restructuring costs and other adjusting items charged in arriving at profit from operations (note 7). Included in current service cost in 2022 is £13 million (2021: £15 million) of administration costs. Current service cost is stated after netting employee contributions, where applicable. The movements in scheme liabilities are as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Present value at 1 January 10,414 12,572 707 798 11,121 13,370 Differences on exchange 567 (122) 78 5 645 (117) Current service cost 50 60 1 2 51 62 Past service (credit)/cost and settlements (1,308) (1,426) 1 — (1,307) (1,426) Interest on scheme liabilities 224 226 23 19 247 245 Contributions by scheme members 3 3 — — 3 3 Benefits paid (586) (705) (59) (55) (645) (760) Actuarial (gains)/losses – arising from changes in demographic assumptions (18) 147 — 3 (18) 150 – arising from changes in financial assumptions (2,775) (394) (145) (18) (2,920) (412) Experience losses/(gains) 126 53 9 (47) 135 6 Present value at 31 December 6,697 10,414 615 707 7,312 11,121 Changes in financial assumptions principally relate to discount rate movements in both years, offset by changes in inflation. Experience losses/(gains) relates to variations from previous assumptions for inflationary increases for pensions-in-payment and deferred pensions as well as adjustments for membership data. Past service (credit)/cost and settlements in the table above includes amounts relating to the U.S. buy-out transaction in both years. Scheme liabilities by scheme membership: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Active members 756 1,090 31 41 787 1,131 Deferred members 1,055 1,750 1 1 1,056 1,751 Retired members 4,886 7,574 583 665 5,469 8,239 Present value at 31 December 6,697 10,414 615 707 7,312 11,121 Approximately 95% of scheme liabilities in both years relate to guaranteed benefits. The movements in funded scheme assets are as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Fair value of scheme assets 10,644 12,403 172 173 10,816 12,576 Differences on exchange 606 (116) 21 — 627 (116) Settlements (1,294) (1,397) — — (1,294) (1,397) Interest on scheme assets 240 226 6 5 246 231 Company contributions 74 74 — — 74 74 Contributions by scheme members 3 3 — — 3 3 Benefits paid (546) (668) (15) (13) (561) (681) Actuarial (losses)/gains (2,456) 119 (31) 7 (2,487) 126 Fair value of scheme assets 7,271 10,644 153 172 7,424 10,816 The actuarial losses and gains in both years principally relate to movements in the fair values of scheme assets including revaluations on initial recognition and subsequent remeasurement of insurance assets acquired in the buy-in transactions referred to above. Actual returns are stated net of applicable taxes and fund management fees. Past service and settlements in the table above includes amounts relating to the U.S. buy-out transactions in both years. 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. Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Equities ‒ listed 623 741 5 6 628 747 Equities ‒ unlisted 756 892 50 65 806 957 Bonds ‒ listed 1,167 1,929 18 5 1,185 1,934 Bonds ‒ unlisted 768 1,924 64 72 832 1,996 Other assets ‒ listed 473 543 7 15 480 558 Other assets ‒ unlisted 3,484 4,615 9 9 3,493 4,624 Fair value of scheme assets 7,271 10,644 153 172 7,424 10,816 In the above analysis, investments via equity-based investment funds are shown under listed equities, and investments via bond-based investment funds are shown under listed bonds. Other assets include insurance contracts, cash and other deposits, derivatives and other hedges, recoverable taxes, infrastructure investments and investment property. 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. Insurance policies of £2,453 million (2021: £3,473 million), acquired in buy-in transactions in the UK and Canada are included within ‘other assets-unlisted’ in the table above. The fair value of these assets was estimated as the present value of the underlying obligations covered by the insurance policy and consequently the valuation of these assets at each balance sheet date is subject to the same measurement uncertainty as for the related scheme liabilities. The fair values of other unlisted assets, excluding buy-in insurance policies, were determined using an income approach that utilised cash flow models utilising observable inputs and comparing these valuations to benchmark valuations of similar assets. In addition, the fair value of a proportion of the unlisted bonds is estimated by reference to daily broker auctions. In the U.S, pension 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 public equity, fixed income, real assets, private equity and hedge funds. The range of allowable investment types utilised for pension assets provides enhanced returns and more widely diversifies the plan. As noted above, during 2022, 2021 and 2019, the UKPF Trustee acquired insurance policies that operate as a UK Fund investment asset in a buy-in transaction. The residual assets of this fund of £143 million (2021: £586 million) now predominantly consist of cash and a proportion of illiquid investments, such as private equity and infrastructure investments, as well as certain liability-driven investments and absolute return funds. The recognition of retirement benefit surpluses on the balance sheet is restricted where the economic benefit, in the form of a potential refund or reduction in future contributions, has a present value which is less than the net assets of the scheme. The movements in the unrecognised scheme surpluses, recognised in other comprehensive income, are as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m Unrecognised funded scheme surpluses at (16) (16) (28) — — — (16) (16) (28) Differences (4) 2 3 — — — (4) 2 3 Interest on unrecognised funded scheme surpluses (1) (1) (1) — — — (1) (1) (1) Movement in year (note 22) (39) (1) 10 — — — (39) (1) 10 Unrecognised funded scheme surpluses at (60) (16) (16) — — — (60) (16) (16) The principal actuarial assumptions (weighted to reflect individual scheme differences) used in the following territories 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. 2022 2021 U.S. UK Germany Canada Netherlands Switzerland U.S. UK Germany Canada Netherlands Switzerland Rate of increase in salaries (%) 3.3 Nil 2.5 2.5 1.4 1.5 3.4 — 2.5 2.5 1.4 1.2 Rate of increase in pensions in payment (%) 2.4 3.2 2.3 Nil 2.2 Nil 2.5 3.4 1.8 Nil 1.1 Nil Rate of increase in deferred pensions (%) 0.1 2.8 2.3 Nil 2.2 — 0.1 3.0 1.8 Nil 1.1 — Discount rate (%) 5.5 5.0 4.2 5.0 3.7 2.1 3.0 1.8 1.3 2.8 1.0 0.2 General inflation (%) 2.5 3.2 2.3 2.0 2.0 1.2 2.5 3.4 1.8 2.0 2.0 1.0 2022 2021 U.S. UK Germany Canada Netherlands Switzerland U.S. UK Germany Canada Netherlands Switzerland Weighted average duration of liabilities (years) 10.7 12.4 10.9 9.0 14.4 10.2 12.3 16.7 13.6 11.0 17.1 13.3 For healthcare inflation in the U.S., the assumption is 7.5% for 2022 (2021: 7.0%) and in Canada, the assumption is 5.0% for both years. Mortality assumptions are subject to regular review. The principal schemes used the following tables: U.S. PRI-2012 mortality tables without collar or amount, projected with MP-2021 generational projection except for a specific group of retired members for which the mortality assumption is 99.5% of the RP-2006 table with white collar adjustment, projected with MP-2021 generational projection (both years) UK S3PA (YOB) with the CMI (2021) improvement model with a 1.25% long-term improvement rate (2021: S3PA (YOB) with the CMI (2020) improvement model with a 1.25% long-term improvement rate) Germany RT Heubeck 2018 G (both years) Canada CPM-2014 Private Table (both years) Netherlands AG Prognosetafel 2022 (2021: AG Prognosetafel 2020) Switzerland LPP/BVG 2020 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate (2021: LPP/BVG 2020 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate) Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows: U.S. UK Germany Canada Netherlands Switzerland Male Female Male Female Male Female Male Female Male Female Male Female 31 December 2022 Member age 65 (current life expectancy) 22.1 23.6 22.9 24.2 20.6 24.0 22.0 24.4 21.0 24.4 22.0 23.7 Member age 45 (life expectancy at age 65) 22.2 24.1 24.5 26.0 23.4 26.3 23.0 25.3 23.2 26.3 23.9 25.6 31 December 2021 Member age 65 (current life expectancy) 21.6 23.5 22.9 24.2 20.5 23.9 22.0 24.3 20.7 24.1 21.9 23.6 Member age 45 (life expectancy at age 65) 22.1 24.0 24.5 25.9 23.2 26.2 23.0 25.3 22.8 25.8 23.8 25.5 For the remaining territories, typical assumptions are that real salary increases will be from 0% to 8.0% (2021: 0% to 8.0%) per annum and discount rates will be from 0% to 7.5% (2021: 0% to 11.0%) above inflation. Pension increases, where allowed for, are generally assumed to be in line with inflation. Assumptions of life expectancy are in line with best practice in each territory. For countries where there is not a deep market in such corporate bonds, the yield on government bonds is used. The 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 2022 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 and pension 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 1 year percentage increase percentage decrease Average life expectancy – increase/(decrease) of scheme liabilities 170 (171) Rate of inflation (+/- 25bps) – increase/(decrease) of scheme liabilities 95 (91) Discount rate (+/- 50bps) – (decrease)/increase of scheme liabilities (309) 328 A one percent increase in healthcare inflation would increase healthcare scheme liabilities by £25 million, and a one percent decrease would decrease liabilities by £19 million. The income statement effect of this change in assumption is not material. |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Deferred tax | 16 Deferred tax Net deferred tax (liabilities)/assets comprise: Stock Excess of Tax Undistributed earnings of associates and subsidiaries Retirement Trademarks Other Total 1 January 2022 (4) (151) 94 (221) 139 (16,779) 1,071 (15,851) Differences on exchange (8) (20) 5 (8) 7 (2,109) 126 (2,007) Credited/(charged) to the income statement 46 50 77 — (18) 70 (51) 174 Credited/(charged) relating to changes in tax rates — (3) 34 — (1) 45 (9) 66 Charged to other — — — — (89) — (17) (106) Net reclassifications as held-for-sale (4) 9 — — — — (27) (22) 31 December 2022 30 (115) 210 (229) 38 (18,773) 1,093 (17,746) 1 January 2021 (13) (189) 58 (231) 246 (16,784) 1,133 (15,780) Differences on exchange (3) 5 (3) 2 (4) (149) 4 (148) Credited/(charged) to the income statement 12 (16) 34 8 (22) 63 (50) 29 Credited/(charged) relating to changes in tax rates — 49 5 — (3) 91 16 158 Charged to other comprehensive income — — — — (78) — (32) (110) 31 December 2021 (4) (151) 94 (221) 139 (16,779) 1,071 (15,851) The net deferred tax liabilities are reflected in the Group balance sheet as follows: deferred tax asset of £682 million and deferred tax liability of £18,428 million (2021: deferred tax asset of £611 million and deferred tax liability of £16,462 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. At the balance sheet date, the Group has not recognised a deferred tax asset in respect of unused tax losses of £364 million (2021: £342 million) which have no expiry date and unused tax losses of £429 million (2021: £452 million) which will expire within the next 20 years. In 2022 and 2021 the Group has not recognised any deferred tax asset in respect of deductible temporary differences which have no expiry date and has not recognised £41 million (2021: £148 million) in respect of deductible temporary differences which will expire within the next 10 years. At the balance sheet date, the Group has unused tax credits of £80 million (2021: £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 and for which no withholding tax liability has been recognised was £1.6 billion (2021: £0.9 billion). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 17 Trade and other receivables 2022 £m 2021 £m Trade receivables 2,609 2,998 Loans and other receivables 1,568 755 Prepayments and accrued income 431 408 4,608 4,161 Current 4,367 3,951 Non-current 241 210 4,608 4,161 The majority of receivables are held in order to collect contractual cash flows, in accordance with the Group’s business model for managing financial assets, and hence are measured at amortised cost. In certain countries, however, the Group has entered into factoring arrangements and periodically sells certain trade receivables to banks and other financial institutions, without recourse, for cash. These trade receivables have been derecognised from the statement of financial position to reflect the transfer by the Group of substantially all of the risks and rewards of the receivables, including credit risk. Consequently, the cash inflows have been recognised within operating cash flows. Typically in these arrangements, the Group also acts as a collection agent for the bank. At 31 December 2022, the value of trade receivables derecognised through the factoring arrangements where the Group acts as a collection agent was £533 million (2021: £562 million) and where the Group does not act as a collection agent was £22 million (2021: £8 million). Included in trade receivables above is £164 million (2021: £110 million) of trade debtor balances which were available for factoring under these arrangements. In addition, the Group participates in certain supply chain finance programmes utilised by our customers allowing us to receive payment for invoices earlier than the agreed due date at a discounted value. At 31 December 2022, the value of trade receivables derecognised through these arrangements was £81 million (2021: £171 million). Included in loans and other receivables are £114 million of litigation related deposits (2021: £84 million). Management has determined that these payments represent a resource controlled by the entity, as a result of past events and from which future economic benefits are expected to flow to the entity either by being recoverable on conclusion of ongoing appeal processes or by reducing amounts potentially payable should the appeal process fail. These deposits are held at the fair value of consideration transferred less impairment, if applicable. The effect of discounting would be immaterial. In March 2017, the Brazilian Supreme Court ruled that for all taxpayers VAT should not be included in the calculation of social contribution taxes (PIS/Cofins) which are levied based on revenue. In August 2022, Souza Cruz achieved the favourable final and unappealable decision in its individual lawsuit in respect of overpaid taxes to the government. Accordingly, an asset has been recognised in the amount of £624 million (principal amount plus interest) . Furthermore, the Group has a right related to an earn-out linked to the timing of the credit compensation of £97 million. Also included in loans and other receivables are deposits that do not meet the definition of cash and cash equivalents as well as loans provided to farmers. The cash flows arising from these transactions are included in investing activities and have been reconciled, in note 18, to the cash flow statement. Prepayments and accrued income include £21 million (2021: £24 million) of accrued income primarily in relation to rebates. Amounts receivable from related parties including associated undertakings are shown in note 30. Trade and other receivables have been reported in the balance sheet net of allowances as follows: 2022 £m 2021 £m Trade receivables – gross 2,660 3,035 Trade receivables – allowance (51) (37) Loans and other receivables – gross 1,568 755 Loans and other receivables – allowance — — Prepayments and accrued income 431 408 Net trade and other receivables per balance sheet 4,608 4,161 The movements in the allowance account are as follows: 2022 2021 Trade receivables Loans Total Trade receivables Loans Total 1 January 37 — 37 41 — 41 Differences on exchange 2 — 2 (2) — (2) Provided in the year 28 — 28 7 — 7 Released (16) — (16) (9) — (9) 31 December 51 — 51 37 — 37 As permitted by IFRS 9, the loss allowance on trade receivables arising from the recognition of revenue under IFRS 15 is initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal to 12-month expected credit losses. Allowances are measured at an amount equal to the lifetime expected credit losses where the credit risk on the receivables increases significantly after initial recognition. 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: U.S. dollar: 1.9% (2021: 2.2%), UK sterling: 0.0% (2021: 0.1%), Euro: 5.7% (2021: 3.6%) and other currencies: 2.4% (2021: 0.9%). 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. |
Investments held at fair value
Investments held at fair value | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Investments Held At Fair Value [Abstract] | |
Investments held at fair value | 18 Investments held at fair value 2022 2021 Fair value through P&L Fair value through OCI Total Fair value through P&L Fair value through OCI Total 1 January 469 37 506 255 9 264 Difference on exchange 18 1 19 3 1 4 Additions 209 19 228 327 18 345 Disposals (93) (3) (96) (98) — (98) Provisions 17 — 17 (24) — (24) Other fair value movements 20 6 26 6 9 15 31 December 640 60 700 469 37 506 Current 579 — 579 456 — 456 Non-current 61 60 121 13 37 50 640 60 700 469 37 506 The Group’s investments principally consist of non-derivative financial assets that cannot be classified as loans and other receivables Investments held at fair value through profit and loss principally consist of government securities, indexed deposits, treasury bills or other treasury products with maturities of more than three months which, if held for less than 12 months, form part of the Group’s definition Investments held at fair value through profit and loss above include restricted amounts of £396 million (2021: £351 million) due to investments held by subsidiaries in CCAA protection (note 32), as well as £78 million (2021: £61 million) subject to potential exchange control restrictions. In 2021, as part of the disposal of the Group’s operations in Iran (note 27(d)), a provision of £24 million against non-current investments held at fair value was charged to net finance costs as recoverability of these funds was not certain. During 2022, £17 million was recovered with some progress on resolving issues over the release of the remaining funds. Investments held at fair value are predominantly denominated in the functional currencies of subsidiary undertakings with less than The classification of these investments under the IFRS 13 Fair Value Measurement fair value hierarchy is given in note 26. 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, including discounted cash flow analyses and share of net assets. The fair value of the 7-year convertible debenture in Charlotte’s Web has been determined using a binomial option pricing model. Included in the values in the table above are £186 million (2021: £101 million) of level 3 assets. Movements in these assets in 2022 included £133 million (2021: £73 million) of additions, £82 million (2021: £56 million) of disposals and £26 million (£9 million) of net fair value gains. Below is a reconciliation of the fair value investments cash flows to the cash flow statement – investing activities: 2022 £m 2021 £m Cash outflow from investments held at fair value 228 345 Cash outflow from loans and other receivables 29 24 Cash outflows from investments per cash flow statement 257 369 Cash inflow from investments held at fair value (96) (98) Cash inflow from loans and other receivables (32) (43) Cash inflows from investments per cash flow statement (128) (141) |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Derivative Financial Instruments [Abstract] | |
Derivative financial instruments | 19 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 26. 2022 2021 Assets Liabilities Assets Liabilities Fair value hedges – interest rate swaps 27 435 5 2 – cross-currency swaps 126 — 114 — Cash flow hedges – interest rate swaps 5 — — — – cross-currency swaps 127 121 107 35 – forward foreign currency contracts 70 71 81 35 Net investment hedges – forward foreign currency contracts 45 247 62 81 Held-for-trading* – interest rate swaps 12 14 28 34 – forward foreign currency contracts 149 41 28 127 Total 561 929 425 314 Current 430 427 182 235 Non-current 131 502 243 79 561 929 425 314 Derivatives – in respect of net debt** 438 605 273 182 – other 123 324 152 132 561 929 425 314 Notes: * Derivatives which do not meet the tests for hedge accounting under IFRS 9 or which are not designated as hedging instruments are referred to as ‘held-for-trading’. These derivatives principally consist of interest rate swaps and 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 does not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes. ** Derivatives in respect of net debt are in a net liability position of £167 million as at 31 December 2022 (2021: net asset position of £91 million). The Group’s net debt is presented in note 23. For cash flow hedges, the timing of expected cash flows is as follows: assets of £202 million (2021: £188 million) of which £72 million (2021: £78 million) is expected within one year and £nil million (2021: £107 million) beyond five years and liabilities of £192 million (2021: £70 million) of which £134 million (2021: £33 million) is expected within one year and £nil (2021: £nil) beyond five years. 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 23. 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 23. 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: 2022 2021 Assets Liabilities Assets Liabilities Inflow Outflow Inflow Outflow Inflow Outflow Inflow Outflow Within one year – forward foreign currency contracts 12,506 (12,249) 8,691 (9,049) 5,743 (4,727) 12,407 (12,096) – cross-currency swaps 731 (608) 689 (767) 14 (22) 17 (36) Between one and two years – forward foreign currency contracts 199 (193) 243 (247) 807 (779) 143 (113) – cross-currency swaps 9 (15) 10 (17) 705 (592) 665 (689) Between two and three years – cross-currency swaps 9 (15) 460 (502) 9 (15) 10 (15) Between three and four years – cross-currency swaps 9 (15) — — 9 (15) 460 (445) Between four and five years – cross-currency swaps 756 (579) — — 9 (15) — — Beyond five years – cross-currency swaps — — — — 726 (579) — — 14,219 (13,674) 10,093 (10,582) 8,022 (6,744) 13,702 (13,394) The maturity dates of net-settled derivative financial instruments, which primarily relate to interest rate swaps, are as follows: 2022 2021 Assets Liabilities Assets Liabilities Within one year 263 531 127 225 Between one and two years 30 134 25 19 Between two and three years — 84 23 11 Between three and four years — 66 (2) 11 Between four and five years — 7 — 12 Beyond five years 23 460 — (17) 316 1,282 173 261 The items designated as hedging instruments are as follows: 2022 2021 Nominal Changes in Nominal Changes in Interest rate risk exposure: Fair value hedges – interest rate swaps 4,657 (417) 4,413 (35) – cross-currency swaps 710 11 672 (52) Cash flow hedges – interest rate swaps 1,247 (5) — — – cross-currency swaps 1,825 60 1,751 69 Foreign currency risk exposure: Cash flow hedges – forward foreign currency contracts 3,695 (2) 3,573 49 Net investment hedges (derivative related) – forward foreign currency contracts 6,407 (208) 6,120 (27) Net investment hedges (non-derivative related) – debt (carrying value) in borrowings designated as net investment hedges of net assets 389 21 368 (24) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Inventories | 20 Inventories 2022 £m 2021 £m Raw materials and consumables 2,370 2,100 Finished goods and work in progress 3,159 3,046 Goods purchased for resale 142 133 5,671 5,279 Write-offs taken to other operating expenses in the Group income statement were £250 million (2021: £215 million; 2020: £309 million). Goods purchased for resale include Group brands produced under third-party contract manufacturing arrangements. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 21 Cash and cash equivalents 2022 £m 2021 £m Cash and bank balances 3,116 2,529 Cash equivalents 330 280 3,446 2,809 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: 2022 £m 2021 £m Functional currency 2,979 2,422 U.S. dollar 207 170 Euro 129 92 Other currencies 131 125 3,446 2,809 In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows: 2022 £m 2021 £m Cash and cash equivalents as above 3,446 2,809 Less overdrafts and accrued interest (109) (346) Net cash and cash equivalents 3,337 2,463 Cash and cash equivalents also include £34 million (2021: £42 million) of cash that is held as a hedging instrument. Restricted cash |
Capital and reserves
Capital and reserves | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Abstract] | |
Capital and reserves | 22 Capital and reserves (a) Share capital Ordinary shares of 25p each Number of shares £m Allotted and fully paid 1 January 2022 2,456,617,788 614.15 Changes during the year – share option schemes 249,632 0.06 31 December 2022 2,456,867,420 614.21 Allotted and fully paid 1 January 2021 2,456,591,597 614.14 Changes during the year – share option schemes 26,191 0.01 31 December 2021 2,456,617,788 614.15 Allotted and fully paid 1 January 2020 2,456,520,738 614.12 Changes during the year – share option schemes 70,859 0.02 31 December 2020 2,456,591,597 614.14 Share capital The Company’s ordinary shares are fully paid and no further contribution of capital may be required by the Company from the shareholders. All ordinary shares rank equally with regard to participation in dividends and to share in the proceeds of the Company’s residual assets upon a winding up of the Company. Shareholders may, by ordinary resolution, declare final dividends, but not in excess of the amount recommended by the Directors. Holders of ordinary shares have no pre-emptive rights. On a show of hands every shareholder who is present in person at a general meeting is entitled to one vote regardless of the number of shares held by the shareholder, unless a poll is demanded. On a poll, every shareholder who is present in person or by proxy has one vote for every share held by the shareholder. The Company’s Annual General Meeting voting is undertaken by way of a poll. All rights attached to the Company’s shares held by the Group as treasury shares are suspended until those shares are reissued. (b) Share premium account, capital redemption reserves and merger reserves comprise: Share Capital Merger Total 31 December 2022 113 101 26,414 26,628 31 December 2021 107 101 26,414 26,622 31 December 2020 103 101 26,414 26,618 Share premium account The share premium account includes the difference between the value of shares issued and their nominal value. The share premium increase includes £5 million (2021: £nil; 2020: £2 million) in respect of ordinary shares issued under the Company’s share option schemes. A further £1 million (2021: £4 million; 2020: £7 million) increase in share premium is related to shares repurchased and not cancelled that have been transferred from the Company to other Group undertakings, to be granted to certain employees on vesting of awards, and represents the excess of transfer price of the share over the original weighted average cost of shares. Capital redemption account 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. Merger reserve account The merger reserve comprises: a. 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; and b. 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. (c) Equity attributed to owners of the parent - movements in other reserves and retained earnings (which are after deducting treasury shares) comprise: Retained earnings Translation Hedging Fair value reserve Revaluation Other Total other Treasury Other 1 January 2022 (6,427) (363) 6 179 573 (6,032) (5,122) 49,334 Comprehensive income and expense Profit for the year — — — — — — — 6,666 Foreign currency translation and hedges of net investments in foreign operations – differences on exchange from translation of foreign operations 8,920 — — — — 8,920 — — – reclassified and reported in profit for the year 5 — — — — 5 — — – net investment hedges - net fair value gains on derivatives (578) — — — — (578) — — – net investment hedges - differences on exchange on borrowings (21) — — — — (21) — — Cash flow hedges – net fair value gains — 81 — — — 81 — — – reclassified and reported in profit for the year — 101 — — — 101 — — – tax on net fair value gains in respect of cash flow hedges (note 10(f)) — (17) — — — (17) — — Investments held at fair value – net fair value gains — — 6 — — 6 — — Associates - share of OCI, net of tax (note 9) 6 — — — — 6 — — Retirement benefit schemes – net actuarial gains (note 15) — — — — — — — 316 – surplus recognition (note 15) — — — — — — — (39) – tax on actuarial gains in respect of subsidiaries (note 10(f)) — — — — — — — (95) Associates - share of OCI, net of tax (note 9) — — 18 — — 18 — 1 Other changes in equity Cash flow hedges reclassified and reported in total assets — (129) — — — (129) — — Employee share options – value of employee services — — — — — — — 81 – treasury shares used for share option schemes — — — — — — 14 (15) Dividends and other appropriations – ordinary shares — — — — — — — (4,915) Purchase of own shares – held in employee share ownership trusts — — — — — — (80) — – share buy-back programme — — — — — — (2,012) — Perpetual hybrid bonds – coupons paid — — — — — — — (59) – tax on coupons paid — — — — — — — 11 Non-controlling interests - acquisitions (note 27(b)) — — — — — — — (1) Reclassification of equity related to assets held-for-sale 295 — — — — 295 — — Other movements — — — — — — 84 (88) 31 December 2022 2,200 (327) 30 179 573 2,655 (7,116) 51,197 Retained earnings Translation Hedging Fair value reserve Revaluation Other Total other Treasury Other 1 January 2021 (6,830) (504) (18) 179 573 (6,600) (5,150) 47,191 Comprehensive income and expense Profit for the year — — — — — — — 6,801 Foreign currency translation and hedges of net investments in foreign operations – differences on exchange from translation of foreign operations 31 — — — — 31 — — – reclassified and reported in profit for the year 291 — — — — 291 — — – net investment hedges – net fair value gains on derivatives 75 — — — — 75 — — – net investment hedges – differences on exchange on borrowings 24 — — — — 24 — — Cash flow hedges – net fair value gains — 95 — — — 95 — — – reclassified and reported in profit for the year — 32 — — — 32 — — – tax on net fair value gains in respect of cash flow hedges (note 10(f)) — (32) — — — (32) — — Investments held at fair value – net fair value gains — — 9 — — 9 — — Associates – share of OCI, net of tax (note 9) (18) 1 — — — (17) — — Retirement benefit schemes – net actuarial gains (note 15) — — — — — — — 382 – surplus recognition (note 15) — — — — — — — (1) – tax on actuarial gains in respect of subsidiaries (note 10(f)) — — — — — — — (82) Associates - share of OCI, net of tax (note 9) — — 15 — — 15 — (1) Other changes in equity Cash flow hedges reclassified and reported in total assets — 45 — — — 45 — — Employee share options – value of employee services — — — — — — — 76 – treasury shares used for share option schemes — — — — — — 13 (17) Dividends and other appropriations – ordinary shares — — — — — — — (4,904) Purchase of own shares – held in employee share ownership trusts — — — — — — (82) — Perpetual hybrid bonds – coupons paid — — — — — — — (6) – tax on coupons paid — — — — — — — 1 Non-controlling interests – acquisitions (note 27(b)) — — — — — — — (5) Other movements — — — — — — 97 (101) 31 December 2021 (6,427) (363) 6 179 573 (6,032) (5,122) 49,334 Retained earnings Translation Hedging Fair value reserve Revaluation Other Total other Treasury Other 1 January 2020 (3,974) (346) 13 179 573 (3,555) (5,261) 45,495 Comprehensive income and expense Profit for the year — — — — — — — 6,400 Foreign currency translation and hedges of net investments in foreign operations – differences on exchange from translation of foreign operations (2,582) — — — — (2,582) — — – net investment hedges – net fair value losses on derivatives (16) — — — — (16) — — – net investment hedges – differences on exchange on borrowings (163) — — — — (163) — — Cash flow hedges – net fair value losses — (256) — — — (256) — — – reclassified and reported in profit for the year — 90 — — — 90 — — – tax on net fair value losses in respect of cash flow hedges (note 10(f)) — 44 — — — 44 — — Associates – share of OCI, net of tax (note 9) (95) (3) — — — (98) — — Retirement benefit schemes – net actuarial gains (note 15) — — — — — — — 105 – surplus recognition (note 15) — — — — — — — 10 – tax on actuarial gains in respect of subsidiaries (note 10(f)) — — — — — — — (26) Associates - share of OCI, net of tax (note 9) — — (31) — — (31) — (3) Other changes in equity Cash flow hedges reclassified and reported in total assets — (33) — — — (33) — — Employee share options – value of employee services — — — — — — — 88 – treasury shares used for share option schemes — — — — — — 9 (16) Dividends and other appropriations – ordinary shares — — — — — — — (4,747) Purchase of own shares – held in employee share ownership trusts — — — — — — (17) — Other movements — — — — — — 119 (115) 31 December 2020 (6,830) (504) (18) 179 573 (6,600) (5,150) 47,191 (i) Translation reserve: The translation reserve is explained in the accounting policy on foreign currencies in note 1. In 2022, included within the differences on exchange from translation of foreign operations is £5 million (2021: £291 million; 2020: £nil) which has been reclassified from reserves to the income statement and recognised in other operating expenses as an adjusting item. This amount includes £4 million in respect of the exit from Egypt and £2 million (2021: £19 million; 2020: £nil) from other Quantum-related initiatives. In addition, in certain markets, the Group has moved to above market business models utilising local distributors as importers. As a consequence, with the cessation of a physical presence in these markets, foreign exchange previously recognised in other comprehensive income for these entities has been reclassified to the income statement. In 2022, as detailed in note 14, as a result of the liquidation of Yemen, the Group reclassified to the income statement the foreign exchange previously recognised in associates other comprehensive income. This resulted in a credit of £1 million to the income statement. (ii) Hedging reserve: The hedging reserve is explained in the accounting policy on financial instruments in note 1. Of the amounts reclassified from the hedging reserve and reported in profit for the year, a loss of £16 million (2021: £29 million loss; 2020: £16 million gain) and a loss of £2 million (2021: £6 million gain; 2020: £19 million gain) were reported within revenue and raw materials and consumables, respectively, together with a gain of £46 million (2021: £4 million loss; 2020: £2 million loss) reported in other operating expenses, and a gain of £73 million (2021: £59 million gain; 2020: £57 million gain) reported within net finance costs. The Group hedges certain foreign currency denominated borrowings with cross-currency interest rate swaps. As permitted by IFRS 9 Financial Instruments , the foreign currency basis spreads have been separated from the hedging instrument and are recognised in reserves as a ‘cost of hedging’ and are reclassified to the income statement in the same period in which profit and loss is affected by the hedged expected cashflows as a component of the associated interest expense. The basis spreads are included within hedging reserves as they are not material. Included within the balance of hedging reserves at 31 December 2022 is an accumulated gain of £5 million (2021: £4 million; 2020: £9 million) in respect of the cost of hedging. (iii) Fair value reserve: The fair value reserve is explained in the accounting policy on financial instruments in note 1. Fair value gains and losses arising from investments held at fair value through other comprehensive income are recognised in this reserve. (iv) Revaluation reserve: The revaluation reserve relates to the acquisition of the cigarette and snus business of ST in 2008. (v) Other reserves: 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 1999 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. (vi) Treasury shares: Total equity attributable to owners of the parent is stated after deducting the cost of treasury shares which include £6,821 million (2021: £4,823 million; 2020: £4,836 million) for shares repurchased and not cancelled and £295 million (2021: £299 million; 2020: £314 million) in respect of the cost of own shares held in employee share ownership trusts. The increase in the shares repurchased and not cancelled is primarily due to the Group’s share buy-back programme net of shares reissued to satisfy the vesting of U.S. share options. On 10 February 2022, the Board approved a proposed £2 billion share buy-back programme for 2022. The previous share buy-back programme was suspended from 30 July 2014. As at 31 December 2022, treasury shares include 5,920,638 (2021: 6,269,959; 2020: 6,053,158) shares held in trust and 221,000,192 (2021: 161,930,217; 2020: 162,347,246) shares repurchased and not cancelled as part of the Company’s share buy-back programme. From March 2020, the Company has utilised shares acquired in the share buy-back programme to satisfy shared-based payment awards made to certain employees. (d) Perpetual hybrid bonds On 27 September 2021, the Group issued two €1 billion perpetual hybrid bonds amounting to £1,703 million, which have been classified These bonds include redemption options exercisable at the Group’s discretion from September 2026 to December 2026 (the The coupons associated with these perpetual hybrid bonds are fixed at 3% until 2026 and 3.75% until 2029, respectively, and would reset to rates determined by the contractual terms of each instrument on certain dates thereafter. The bonds are perpetual in nature and do not have maturity dates for the repayment of principal. The contractual terms of the perpetual hybrid bonds allow the Group to defer coupon payments, however certain contingent events could trigger mandatory payments of such deferred coupons, including the payment of dividends on, and the repurchase of, ordinary shares, subject to certain exceptions in each case. The full terms and conditions of such events can be found in the prospectus dated 27 September 2021 which is available under the debt facilities section of the Group’s debt microsite (bat.com/debt). As the Group has the unconditional right to avoid transferring cash or another financial asset in relation to these bonds, they are classified as equity instruments in the consolidated financial statements. During the year, the Group did not defer any eligible coupon payments and paid a coupon of £33 million in September 2022 on the The fair value of these bonds at 31 December 2022 is £1,331 million (2021: £1,651 million). (e) Non-controlling interests Movements in non-controlling interests primarily relate to profit for the year and dividends (reported as a movement in retained earnings) and differences on exchange arising from the translation into sterling (reported as a movement in other reserves). Information on subsidiaries with material non-controlling interests is provided in note 32. (f) Dividends and other appropriations The interim quarterly dividend payment for the year ended 31 December 2021 of 217.8p per ordinary share (31 December 2020: 215.6p per ordinary share) was payable in four equal instalments: amounts payable in May 2022 of £1,239 million (May 2021: £1,241 million), August 2022 of £1,223 million (August 2021: £1,228 million), November 2022 of £1,219 million (November 2021: £1,232 million) and £1,211 million in February 2023 (February 2022: £1,236 million) respectively. The total dividends recognised as an appropriation from reserves in 2022 was £4,915 million (2021: £4,904 million; 2020: £4,747 million). The Board has declared an interim dividend of 230.9p per ordinary share of 25p, for the year ended 31 December 2022, payable in four equal quarterly instalments of 57.72p per ordinary share in May 2023, August 2023, November 2023 and February 2024. These payments will be recognised as appropriations from reserves in 2023 and 2024. The total amount payable is estimated to be £5,163 million based on the number of shares outstanding at the date of these accounts. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [abstract] | |
Borrowings | 23 Borrowings Currency Maturity dates Interest rates 2022 £m 2021 £m Eurobonds Euro 2023 to 2045 0.9% to 3.1% 7,149 7,316 UK sterling 2024 to 2055 2.1% to 7.3% 3,884 4,086 Swiss franc 2026 1.4% 226 203 Bonds issued pursuant to Rules under the U.S. Securities Act (as amended) U.S. dollar 2023 to 2052 1.7% to 8.1% 30,152 25,625 U.S. dollar* 2022 USD3m LIBOR + 0.88 bps — 554 Bonds and notes 41,411 37,784 Commercial paper 27 269 Other loans 875 500 Bank loans 203 313 Bank overdrafts 106 346 Lease liabilities 517 446 43,139 39,658 Note: * As at 31 December 2022, there were no outstanding floating rate U.S. dollar bonds (2021: £554 million, 3M LIBOR +88bps) Perpetual hybrid bonds issued by the Group have been classified as equity (note 22(d)) and are therefore excluded from borrowings. Other loans comprise £875 million (2021: £500 million) relating to a bilateral facility. Commercial paper is issued at competitive rates to meet short-term borrowing requirements as and when needed. Current borrowings per the balance sheet include interest payable of £524 million at 31 December 2022 (2021: £460 million). Included within borrowings are £9,223 million (2021: £9,197 million) of borrowings subject to fair value hedges where their amortised cost has The fair value of borrowings is estimated to be £37,170 million (2021: £40,557 million) of which £35,440 million (2021: £38,683 million) Amounts secured on Group assets including property, plant and equipment, inventory and receivables as at 31 December 2022 are Borrowings are repayable as follows: Per balance sheet Contractual gross maturities 2022 £m 2021 £m 2022 £m 2021 £m Within one year 4,413 3,992 5,426 4,860 Between one and two years 4,253 2,484 5,763 3,740 Between two and three years 4,406 3,853 5,673 5,092 Between three and four years 3,013 4,090 4,141 5,034 Between four and five years 4,077 2,739 5,494 3,675 Beyond five years 22,977 22,500 33,806 32,203 43,139 39,658 60,303 54,604 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 U.S. UK Euro Other Total 31 December 2022 Total borrowings 33,438 3,383 452 5,579 287 43,139 Effect of derivative financial instruments – cross-currency swaps 2,356 — (450) (2,085) — (179) – forward foreign currency contracts (40) (998) — 590 454 6 35,754 2,385 2 4,084 741 42,966 31 December 2021 Total borrowings 30,363 2,837 453 5,775 230 39,658 Effect of derivative financial instruments – cross-currency swaps 2,219 — (450) (1,973) — (204) – forward foreign currency contracts (24) (464) — 58 432 2 32,558 2,373 3 3,860 662 39,456 The exposure to interest rate changes when borrowings are re-priced is as follows: Within Between Between Between Between Beyond Total 31 December 2022 Total borrowings 4,398 4,246 4,407 3,013 4,077 22,998 43,139 Effect of derivative financial instruments – interest rate swaps 4,657 (500) (1,247) — (2,910) — — – cross-currency swaps (77) — 36 — (138) — (179) 8,978 3,746 3,196 3,013 1,029 22,998 42,960 31 December 2021 Total borrowings 3,999 2,477 3,853 4,090 2,739 22,500 39,658 Effect of derivative financial instruments – interest rate swaps 4,192 — (500) (1,107) — (2,585) — – cross-currency swaps 566 (652) — (19) — (99) (204) 8,757 1,825 3,353 2,964 2,739 19,816 39,454 Lease liabilities are repayable as follows: Per balance sheet Contractual gross maturities 2022 £m 2021 £m 2022 £m 2021 £m Within one year 142 126 161 142 Between one and two years 109 93 122 106 Between two and three years 76 66 85 76 Between three and four years 58 49 65 56 Between four and five years 50 38 54 43 Beyond five years 82 74 112 103 517 446 599 526 For more information on leasing arrangements, refer to note 13(b) . As at 31 December 2022, the Group’s undrawn committed borrowing facilities (note 26) amount to £7,828 million (2021: £7,850 million) with £4,828 million maturing within one year (2021: £4,850 million maturing within one year), £150 million maturing between two and three years (2021: £nil maturing between two and three years), £350 million maturing between three and four years (2021: £150 million maturing between three and four years) and £2,500 million maturing between four and five years (2021: £2,850 million maturing between four and five years). The Group’s composition and movements in net debt are presented below along with a reconciliation to the financing activities in the Group Cash Flow Statement: 2022 £m Notes Opening balance Cash flow Foreign exchange Fair value, accrued interest and other Held for Sale Closing balance Borrowings (excluding lease liabilities)* 39,212 (17) 3,881 (454) — 42,622 Lease liabilities 446 (161) 30 218 (16) 517 Derivatives in respect of net debt 19 (91) 348 (435) 345 — 167 Cash and cash equivalents 21 (2,809) (571) (431) (3) 368 (3,446) Current investments held at fair value 18 (456) (86) (15) (22) — (579) 36,302 (487) 3,030 84 352 39,281 2021 £m Notes Opening Cash flow Foreign Fair value, Held for Sale Closing balance Borrowings (excluding lease liabilities)* 43,493 (3,768) (387) (126) — 39,212 Lease liabilities 475 (154) (22) 147 — 446 Derivatives in respect of net debt 19 (346) (22) 277 — — (91) Cash and cash equivalents 21 (3,139) 75 258 (3) — (2,809) Current investments held at fair value 18 (242) (205) (2) (7) — (456) 40,241 (4,074) 124 11 — 36,302 Note: * Borrowings as at 31 December 2022 include £798 million (2021: £754 million) in respect of the purchase price adjustments relating to the acquisition of Reynolds American. In the table above, movements in accrued interest relate to the net movement year on year and cash flows related to interest payments are not included. ' 2022 £m 2021 £m Cash flows per net debt statement (487) (4,074) Non-financing cash flows included in net debt 897 33 Interest paid (1,578) (1,479) Interest element of lease liabilities (25) (23) Remaining cash flows relating to derivative financial instruments (465) 251 Purchases of own shares held in employee share ownership trusts (80) (82) Purchase of own shares (2,012) — Proceeds from issue of perpetual hybrid bonds — 1,681 Coupon paid on perpetual hybrid bonds (60) (6) Dividends paid to owners of the parent (4,915) (4,904) Capital injection from and purchase of non-controlling interests (1) 1 Dividends paid to non-controlling interests (158) (150) Other 6 3 Net cash used in financing activities per cash flow statement (8,878) (8,749) |
Provisions for liabilities
Provisions for liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other provisions [abstract] | |
Provisions for liabilities | 24 Provisions for liabilities Restructuring Employee-related Fox River DOJ and OFAC investigations £m Other Total 1 January 2022 179 41 62 — 571 853 Differences on exchange 9 2 — — 15 26 Provided in respect of the year (*) 198 10 — 450 187 845 Transferred to liabilities associated with assets held for sale (20) — — — (6) (26) Utilised during the year (69) (9) (8) — (91) (177) 31 December 2022 297 44 54 450 676 1,521 Analysed on the balance sheet as – current 240 14 10 450 373 1,087 – non-current 57 30 44 — 303 434 297 44 54 450 676 1,521 Restructuring Employee-related Fox River Other Total 1 January 2021 241 38 70 636 985 Differences on exchange (13) (3) — (23) (39) Provided in respect of the year (*) 32 27 — 199 258 Utilised during the year (81) (21) (8) (241) (351) - in respect of MSA litigation (Texas, Minnesota, Mississippi) — — — (199) (199) - in respect of other (81) (21) (8) (42) (152) 31 December 2021 179 41 62 571 853 Analysed on the balance sheet as – current 123 14 8 316 461 – non-current 56 27 54 255 392 179 41 62 571 853 Note: * Amounts provided above are shown net of reversals of unused provisions which include reversals of £35 million (2021: £20 million) for restructuring of existing businesses, The restructuring provisions relate to the restructuring and integration costs incurred and are reported as adjusting items. The principal restructuring activities in 2022 and 2021 are as described in note 7 and primarily include the cost of employee packages and long-term social plans associated with redundancy programmes from previous years. Provisions associated with redundancy packages are determined based on termination packages offered in each country. The long-term social plans primarily relate to social plans in Germany, which span over several years and are based on actuarial calculations. These are discounted to present value using Central Bank rates. We do not consider the effect of discounting to be material. The provisions for long-term social plans include future payments related to contracts that are already fixed. Given that there is little or no variability expected in the timing and amount of the payments, no additional risk has been incorporated in the discounting. While some elements of the non-current provisions of £57 million will unwind over several years, as termination payments are made over extended periods in some countries, it is estimated that approximately 97% of these non-current provisions 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, ‘jubilee’ payments due after a certain service period and expected payments associated with long-term disability. The majority of these provisions are calculated by actuaries. It is estimated that approximately 81% of the non-current provisions of £30 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 31. This agreement led to payments of £1 million in 2022 (2021: £2 million). In addition, the Group incurred legal costs of £7 million (2021: £6 million), which were also charged against the provision. It is expected that the non-current provision will unwind within five years. As discussed earlier (in note 6(h) Other Operating Expenses), the Group has been cooperating with investigations by the DOJ and OFAC into suspicions of breaches of sanctions. The Group is engaged in discussions with both agencies to find a resolution through settlement. A provision of £450 million has been recognised in 2022, however it cannot be excluded that the amount of any potential settlement with the DOJ and OFAC may vary from this amount. 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. Other provisions also include a provision for interest of £183 million in relation to the Franked Investment Income Group Litigation Order (FII GLO), as mentioned in notes 8(b) and 10(b). The provision is calculated based on the UK central bank base rate plus 2% and has been charged to net finance costs. As there is uncertainty over the potential timing In 2020, the Group recognised a provision of US$272 million (£212 million) in relation to the ITG Brands, LLC MSA litigation agreements with the States of Texas, Minnesota and Mississippi which was utilised in 2021. Further details are provided in note 31. On 1 March 2019, the Quebec Court of Appeal in Montreal upheld the Superior Court’s decision of May 2015 (reducing ITCAN’s share of the judgment due to a change in interest computation to a maximum of CAD$9.2 billion). The Court of Appeal also upheld the previously stated requirements for the defendants to deposit CAD$1.1 billion into an escrow account. The Board of Directors of ITCAN reassessed the recoverability of the litigation related deposit and, accordingly, the Group recognised a charge against the income statement of CAD$758 million (£436 million) in 2019, reflecting the amount of the judgment that is considered to be probable and estimable in line with IAS 37 Provisions, Contingent Liabilities and Contingent Assets . Consequently, the Group utilised the litigation related deposit which was shown as a receivable at 31 December 2018 (within trade and other receivables) against the current estimate of the liability and both the provision and litigation related deposit were reduced accordingly. Further details are provided in note 31. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Trade and other payables | 25 Trade and other payables 2022 £m 2021 £m Trade payables 4,055 3,923 Duty, excise and other taxes 3,104 3,148 Accrued charges and deferred income 2,713 2,095 FII GLO (note 10(b)) 913 963 Social security and other taxation 61 55 Sundry payables 547 375 11,393 10,559 Current 10,449 9,577 Non-current 944 982 11,393 10,559 As explained in note 17, the Group acts as a collection agent for banks and other financial institutions in certain debt factoring arrangements. The cash collected in respect of these arrangements that has not yet been remitted amounts to £119 million (2021: £137 million) and is included in sundry payables. In addition, the Group has certain Supply Chain Financing (SCF) or ‘reverse factoring’ arrangements in place. The principal purpose of these arrangements is to provide the supplier with the option to access liquidity earlier through the sale of its receivables due from the Group to a bank or other financial institution prior to their due date. Management has determined that the Group’s payables to these suppliers have neither been extinguished nor have the liabilities been significantly modified by these arrangements. The value of amounts payable, invoice due dates and other terms and conditions applicable, from the Group’s perspective, remain unaltered, with only the ultimate payee being changed. At 31 December 2022, the value of amounts payable under the SCF programmes was £257 million (2021: £251 million). The cash outflows in respect of these arrangements have been recognised within operating cash flows. Included in this amount is £161 million (2021: £156 million) of leaf payables where the standard payment terms with the vendor is 150 days, consistent with credit terms normally available in certain markets. During 2022, following an investigation by the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) into alleged violations of the Nigerian Competition and Consumer Protection Act and National Tobacco Control Act, a consent order was entered into between the FCCPC and British American Tobacco (Holdings) Limited, British American Tobacco (Nigeria) Limited and British American Tobacco Marketing (Nigeria) Limited in December 2022 terminating the investigation and associated proceedings. A penalty equivalent to US$110 million has been accrued for and will be paid in Naira in instalments, among other measures. Accrued charges and deferred income include £20 million of deferred income (2021: £1 million) relating to certain customer deposits in advance of shipments and £66 million (2021: £58 million) in respect of interest payable mainly related to tax matters. FII GLO of £913 million (2021: £963 million) relates to receipts in 2015, in respect of the Franked Investment Income Government Litigation Order (note 10(b)). Amounts payable to related parties including associated undertakings are shown in note 30. 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 7% in other currencies (2021: less than 6% in other currencies). |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Financial instruments and risk management | 26 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 (note 23) and equity (note 22). There are no externally imposed capital requirements for the Group. Group policies include a set of financing principles that 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 2022 is 4.0% (2021: 3.5%). 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: Liquidity risk It is the policy of the Group to maximise financial flexibility 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 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. The Group continues to target a solid investment-grade credit rating. Moody’s and S&P's current ratings for the Group are Baa2 (stable outlook) and BBB+ (negative outlook), respectively. The Group’s strategy is to continue deleveraging. The Group is confident of its continued ability to successfully access the debt capital markets for future refinancing requirements. 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 2022, As part of its working capital management, in certain countries, the Group has entered into factoring arrangements and supply chain financing arrangements. These are explained in further detail in note 17 and note 25. 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 to predominantly fund short- to medium-term working capital requirements. Available facilities in current year: It is Group policy that short-term sources of funds (including drawings under both the Group US$4 billion U.S. commercial paper (U.S. CP) programme and the Group £3 billion euro commercial paper (ECP) programme) are backed by undrawn committed lines of credit and cash. Commercial paper is issued At 31 December 2022, the Group had access to a £5.69 billion revolving credit facility. In February 2022, the Group exercised the second of the one-year extension options.Therefore, the £2.85 billion 364-d ay tranche was extended to March 2023 at the reduced amount of £2.7 billion and £2.5 billion of the five-year tranche was extended from March 2026 to March 2027 (with £3.0 billion of this tranche remaining available until March 2025 and £2.85 billion remaining available from March 2025 to March 2026). The Group anticipates to refinance the £2.7 billion 364-day tranche in the first half of the 2023 financial year. During 2022, the Group extended short-term bilateral facilities totalling £3.0 billion. As at 31 December 2022, £875 million was drawn on a short-term basis with £2.1 billion undrawn and still available under such bilateral facilities. Cash flows relating to bilateral facilities that have maturity periods of three months or less are presented on a net basis in the Group’s cash flow statement. Issuance, drawdowns and repayments in current year: – In March 2022, the Group accessed the US dollar market under its SEC Shelf Programme, raising a total of US$2.5 billion across two tranches; – In May 2022, the Group repaid a €600 million bond at maturity; – In June 2022, the Group repaid US$419 million and £180 million bonds at maturity; – In August 2022, the Group repaid US$750 million and US$601 million bonds at maturity; and – In October 2022, the Group raised US$600 million in the US dollar market under its SEC Shelf Programme. In January 2023, the Group repaid a €750 million bond at maturity. Available facilities in prior year: At 31 December 2021, the Group had access to a £5.85 billion revolving credit facility. This facility was undrawn at During 2021, the Group extended short-term bilateral facilities totalling £2.5 billion until March or April 2022, some with extension options to extend for further periods. As at 31 December 2021, £500 million was drawn on a short-term basis. Issuance, drawdowns and repayments in prior year: – In February 2021, the Group repaid a €650 million bond at maturity; – In June 2021, the Group repaid £500 million of the £1,929 million term loan that has a maturity date in January 2022; the remaining £1,429 million was repaid in September 2021; – In July, August, September and November 2021, the Group repaid £500 million, €1,100 million, CHF 400 million and €500 million of bonds at maturity, respectively; and The Group issued perpetual hybrid bonds totalling €2 billion in September 2021. Please refer to note 22(d) for further details. 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, Euro, Canadian dollar, Australian dollar, Indian rupee, South African rand, Indonesian rupiah, Danish krone, Brazilian real, Russian rouble, Singaporean dollar and Swiss franc. 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 2022, the currency profile of the Group’s gross debt, after taking into account derivative contracts, was 71% U.S. dollar (2021: 68%), 13% euro (2021: 13%), 12% sterling (2021: 13%) and 4% other currencies (2021: 6%). 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 functional currency against the non-functional currency of its subsidiaries as a reasonably possible change. 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 10% strengthening of functional currencies against non-functional currencies would result in pre-tax profit being £49 million lower (2021: £53 million lower; 2020: £61 million lower) and items recognised directly in other comprehensive income being £445 million higher (2021: £144 million higher; 2020: £57 million higher). A 10% weakening of functional currencies against non-functional currencies would result in pre-tax profit being £60 million higher (2021: £65 million higher; 2020: £74 million higher) and items recognised directly in other comprehensive income being £543 million lower (2021: £177 million lower; 2020: £70 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 do 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. Additional objectives are to minimise the cost of hedging and the associated counterparty risk. 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) as a result of regular reviews of market conditions and strategy by the Corporate Finance Committee and the board of the main central finance company. 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, or forward starting swaps to manage the refinancing risk. The interest rate profile of liquid assets included in net debt are considered to offset floating rate debt and are taken into account in determining the net interest rate exposure. At 31 December 2022, the relevant ratio of floating to fixed rate borrowings after the impact of derivatives was 12:88 (2021: 18:82). On a net debt basis, after offsetting liquid assets, the relevant ratio of floating to fixed rate borrowings was 3:97 (2021: 10:90). Excluding cash and other liquid assets in Canada, which are subject to certain restrictions under CCAA protection, the ratio of floating to fixed rate borrowings was 7:93 (2021: 13:87). 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 £50 million lower (2021: £44 million lower; 2020: £31 million lower). A 100 basis point decrease in interest rates, or less where applicable, would result in pre-tax profit being £50 million higher (2021: £47 million higher; 2020: £29 million higher). The effect of these interest rate changes on items recognised directly in other comprehensive income is not material in either year. In accordance with the UK Financial Conduct Authority’s announcement on 27 July 2017, and following the decision taken by global regulators in 2018 to replace Interbank Offered Rates with alternative nearly risk-free rates, such benchmark rates were expected to be largely discontinued after 2021. The IASB addressed the effects of interest rate benchmark reform on financial reporting, with two phases of Amendments to IFRS 9 Financial Instruments (and other Standards) which the Group adopted in its 2019 and 2020 accounts, respectively, as explained in the accounting policies (note 1). The impact on the Group’s profit or equity from the application of these amendments was not material. In January 2021, the Group confirmed adherence to the ISDA 2020 IBOR Fallbacks Protocol as published by the International Swaps and Derivatives Association, Inc. (ISDA) on 23 October 2020 (the Protocol), ensuring that appropriate fallback rates can apply to derivatives in the event of LIBOR discontinuation. As at 31 December 2022, the Group had no outstanding floating rate bonds using historical benchmark rates (2021: US$750 million (£554 million)). The Group’s syndicated revolving credit facility (undrawn at 31 December 2022 and 2021) has historically had references to USD London Interbank Offered Rate (''LIBOR''), EURIBOR and GBP LIBOR. This facility includes market standard LIBOR replacement language, and with effect from June 2021 the agreement has adopted SOFR and SONIA as the alternative benchmark rates in respect of USD LIBOR and GBP LIBOR, respectively. Following announcements by the respective regulators, EURIBOR is expected to continue for the foreseeable future, with USD LIBOR rates potentially discontinued only after June 2023. The Group is party to the ISDA fallback protocol and in January 2022, it automatically replaced the GBP LIBOR with economically equivalent interest rate derivatives referencing SONIA on their reset date. The four impacted derivatives (cross currency interest rate swaps) with nominal values totalling €800 million (£672 million) maturing in October 2023 are in fair value hedge relationships which were indexed to GBP LIBOR interest rates. The Group has updated the respective hedge documentation accordingly since the uncertainty regarding the transition for these four derivatives has ceased. The hedge relationships on these derivatives continue with resulting ineffectiveness expected to be immaterial. 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. 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 £90 million (2021: £89 million). In addition, the Group has entered into a guarantee arrangement to support a short-term bank credit facility with a supply chain partner. The maximum exposure under the arrangement would be £1 million (2021: £1 million). Price risk The Group is exposed to price risk on investments held by the Group, which are included in investments held at fair value 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 economic relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the economic 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. The prospective effectiveness testing determines that an economic relationship between the hedged item and the hedging instrument exists. In accordance with the Group Treasury Policy, the exact hedge ratios and profile of a hedge relationship will depend on several factors, including the desired degree of certainty and reduced volatility of net interest costs and market conditions, trends and expectations in the relevant markets. The sources of ineffectiveness include spot and forward differences, impact of time value and timing differences between periods in the hedged item and hedging instrument. The Group’s risk management strategy has been explained in further detail under the interest rate risk and currency risk sections of this note. 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 In accordance with IFRS 13 classification hierarchy, the following table presents the Group’s financial assets and liabilities that are measured at fair value: 2022 2021 Notes Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets at fair value Investment held at fair value 18 514 — 186 700 405 — 101 506 Derivatives relating to – interest rate swaps 19 — 43 — 43 — 33 — 33 – cross-currency swaps 19 — 254 — 254 — 221 — 221 – forward foreign currency contracts 19 — 264 — 264 — 171 — 171 Assets at fair value 514 561 186 1,261 405 425 101 931 Liabilities at fair value Derivatives relating to – interest rate swaps 19 — 450 — 450 — 36 — 36 – cross-currency swaps 19 — 121 — 121 — 35 — 35 – forward foreign currency contracts 19 — 358 — 358 — 243 — 243 Liabilities at fair value — 929 — 929 — 314 — 314 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. 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: 2022 2021 Amount presented in the Group balance sheet* Related amounts not offset in the Group balance Net amount Amount presented in Related amounts not offset in the Group Net amount Financial assets – Derivative financial instruments (note 19) 561 (405) 156 425 (184) 241 Financial liabilities – Derivative financial instruments (note 19) (929) 405 (524) (314) 184 (130) (368) — (368) 111 — 111 Note: * 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. The hedged items by risk category are presented below: 2022 Carrying amount of the hedged item Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item Line item in the statement of financial position where the hedged item is included Changes in fair value used for calculating hedge ineffectiveness Cash flow hedge reserve (gross of tax) Fair value hedges Interest rate risk – borrowings (liabilities) 9,223 (355) Borrowings 399 Cash flow hedges Interest rate risk – borrowings (liabilities) 1,824 Borrowings (55) (464) 2021 Carrying amount of the hedged item Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item Line item in the statement of financial position where the hedged item is included Changes in fair value used for calculating hedge ineffectiveness Cash flow hedge Fair value hedges Interest rate risk – borrowings (liabilities) 9,197 101 Borrowings 87 — Cash flow hedges Interest rate risk – borrowings (liabilities) 2,132 — Borrowings (69) (538) £389 million (2021: £368 million) of the Group’s borrowings are designated as net investment hedge instruments of the Group’s net investments in foreign operations. In line with the Group’s risk management policies, the net investment hedge relationships are reviewed periodically. The change in the value used for calculating hedge ineffectiveness for hedged items designated under net investment hedge relationships is £21 million (2021: £24 million). |
Changes in the Group
Changes in the Group | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Changes in the Group | 27 Changes in the Group (a) Acquisitions 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 12 November 2020, the Group acquired 100% of the share capital in Eastern Tobacco Company for Trading , subsequently renamed as BAT Arabia for Trading, for £50 million. Goodwill of £36 million, representing anticipated synergies, and trademarks and similar intangibles of £39 million, as well as £96 million of cash and cash equivalents, were recognised on acquisition. On 30 September 2019, the Group acquired control of Twisp Proprietary Limited , a South African e-cigarette/nicotine Vapour company for a purchase price of £25 million of which £6 million was deferred and contingent upon future performance in the market. Goodwill of £12 million, representing a strategic premium to enter this segment of the South African Vapour market, and trademarks and similar intangibles of £15 million were recognised on acquisition. Due to difficult trading conditions, the goodwill and intangibles were fully impaired in 2020. The final payment of deferred consideration of £3 million was paid in 2021. (b) Non-controlling interests In 2022, the Group acquired a further 3.3% in Hrvatski Duhani d.d. Tobacco Leaf Processing at a cost of £1 million, following the acquisition of an additional 2.7% in Hrvatski Duhani d.d. Tobacco Leaf Processing in 2021 at a cost of £1 million. In 2021, the Group made a capital contribution to Brascuba Cigarrillos S.A . at a cost of £6 million (2020: £17 million). This contribution was in proportion to a capital contribution made by the non-controlling interest to the company and as such, the Group’s shareholding remains unchanged. Also in 2021, as part of a Voluntary Tender Offer for the non-controlling interests of the Group’s Indonesian subsidiary, the Group acquired 0.2% additional shares at a cost of £4 million as explained in note 30. (c) Other transactions (i) Organigram On 11 March 2021, the Group announced a strategic collaboration agreement with Organigram Inc., a wholly owned subsidiary of publicly traded Organigram Holdings Inc. (collectively, Organigram). Under the terms of the transaction, a Group subsidiary acquired a 19.9% equity stake in Organigram Holdings Inc. to become its largest shareholder, with the ability to appoint two directors to Organigram Holdings Inc.’s board of directors and representation on its investment committee. The Group accounts for the investment as an associate. The Group’s initial investment of £129 million was allocated against the Group’s share of Organigram’s net assets, including the recognition of £49 million of intangibles, and goodwill of £30 million, which represents a strategic premium to enter the legal cannabis market in North America. During 2021, Organigram acquired all of the issued and outstanding shares of The Edibles & Infusions Corporation (EIC) for an initial consideration of CAD$22 million, payable in shares. Organigram also acquired all of the issued and outstanding shares of Laurentian Organic Inc. for consideration of CAD$36 million, payable in cash and shares. The impact of these transactions on the Group was not material. As a result of these transactions, the Group’s shareholding was reduced to 18.8%. In 2022, the Group exercised its top-up rights and invested a further £4 million to maintain its ownership stake. (ii) Other acquisitions On 26 September 2022, the Group announced a £32 million investment in exchange for 16% of Sanity Group GmbH (Sanity Group), a German based cannabis company which has a well-established product portfolio of CBD consumer brands and medical cannabis brands and is actively engaged in the research, development, and marketing of cannabis products. The Group’s investment was part of a series-B investment round. As part of the investment agreement, the Group has the right to appoint directors to the Sanity Group's board and will account for the investment as an associate. The Group’s investment was allocated against the Group’s share of Sanity Group’s net assets, including the recognition of £4 million of intangibles, and goodwill of £28 million, which represents a strategic premium in expectation of the legalisation of cannabis in Germany and elsewhere in Europe. In November 2022, the Group announced that it had invested in Charlotte’s Web Holdings, Inc. (Charlotte’s Web), via a convertible debenture of £48 million. Charlotte's Web is based in Colorado, USA, listed on the Toronto Stock Exchange, and holds a prominent position in innovative hemp extract wellness products across major retail channels, including food/drug/mass retail, and natural grocery and vitamin retailers. Their product formats include tinctures, capsules, chews and topicals. The debenture is currently convertible into a non-controlling equity stake in Charlotte’s Web of approximately 19.9% and is convertible at BAT’s discretion. Given that the nature of the investment as a convertible loan note does not give the Group any current right to a share of the earnings or net assets of the investee, despite the ability to appoint directors, the investment will be recognised at fair value through profit and loss with fair value changes in the investment recognised in net finance costs. On conversion of the loan note, the Group will equity account for its investment. During 2022, the Group increased its ownership of a wholesale producer and distributor operating in the agriculture sector based in Uzbekistan, FE “Samfruit” JSC by 2.8% to 45.4%, for £1 million. During 2021, the ownership was increased by 4%, for £1 million and in 2020, by 28.4%, for £5 million. The Group accounts for the investment as an associate. In addition, during 2022, the Group made a non-controlling investment in Steady State LLC , a U.S. based cGMP certified manufacturer and distributor of cannabinoid ingredients, food products and nutraceuticals, for £4 million. The Group accounts for the investment as an associate. (d) Assets held for sale and business disposals (i) BAT Russia On 11 March 2022, the Group announced the intention to transfer its Russian business in full compliance with international and local laws. The Group has two subsidiaries in Russia (BAT Russia), being JSC British American Tobacco-SPb and JSC International Tobacco Marketing Services (ITMS) . In addition, the Group’s subsidiary in Belarus, International Tobacco Marketing Services BY , will form part of the transaction. Upon completion, it is intended that the Group will no longer have a presence in Russia (or Belarus). It is intended that, as a result of a potential sale of its shares to an acquirer, the Group will have neither voting rights nor the ability or means to direct day-to-day activities, appoint management, or make business decisions. Since the Group will not own any shares in the transferred businesses, and is not providing any financing to the proposed buyer, the Group will not have any exposure to returns from the business, having no rights to dividends, royalties or amendments to the agreed-upon consideration to take account of post-disposal trading. Consequently, management have classified the assets and liabilities of these entities as a disposal group in accordance with IFRS 5. At 30 June 2022, £387 million of property, plant and equipment and other non-current assets, £696 million of trade and other receivables, £240 million of cash and cash equivalents and £144 million of other current assets principally relating to inventories, were classified as held-for-sale in respect of this anticipated disposal and presented as such on the balance sheet at an estimated fair value less costs to sell. In addition, £11 million of borrowings and £528 million of trade creditors and other current liabilities were also classified as held-for-sale. Impairment charges and associated costs of £957 million were recognised in the Income Statement and were treated as a non-cash, adjusting item. The assets and liabilities recognised as held-for-sale, as at 30 June 2022, and the subsequent impairment charge, did not include Belarus. At 31 December 2022, £281 million of property, plant and equipment and other non-current assets, £474 million of trade and other receivables, £368 million of cash and cash equivalents and £181 million of other current assets principally relating to inventories, have been similarly classified as held-for-sale and presented as such on the balance sheet at an estimated fair value less costs to sell. In addition, £16 million of borrowings and £412 million of trade creditors and other current liabilities have been classified as held-for-sale at 31 December 2022. Impairment charges of £554 million and associated costs of £58 million have been recognised in the Income Statement as adjusting items. An estimated charge of £295 million in respect of foreign exchange previously recognised in other comprehensive income will be reclassified to the income statement on completion of the transaction as has been shown as a separate amount within Group reserves. At the date of approval of these accounts, no definitive agreement to transfer the shares in these subsidiaries had been entered into, with no final consideration agreed. The assessment of the recoverable value (fair value less costs to sell) at 30 June and 31 December 2022 has taken into account a range of internal assumptions, including those regarding the likely consideration for the sale, the impact, extent and duration of sanctions, the likelihood of consideration being significantly deferred and ongoing macro-economic developments, including the impact of inflation and interest rates. All assumptions are based on current expectations and are subject to a very high degree of volatility and uncertainty and therefore may change up until the final value can be determined, based on an actual transaction. The following is a reconciliation between the total assets available for sale and their estimated recoverable value (fair value less costs to sell): 31 December 2022 £m Total assets held-for-sale 1 1,321 Impairment of non-current assets held-for-sale - Russia and Belarus (281) 1,040 Excess impairment beyond non-current assets held-for-sale - Russia and Belarus (273) 767 Note: 1. (ii) B.A.T. Pars Company PJSC (BAT Pars) On 25 June 2021, the Group agreed to dispose of its Iranian subsidiary, BAT Pars to DTM ME FZE LLC. Accordingly, BAT Pars was classified as held-for-sale at that date and £152 million of assets, primarily comprised £98 million of cash and cash equivalents, £38 million of inventory and £14 million of property, plant and equipment, were transferred to held-for-sale assets. Also, £24 million of liabilities, primarily comprised £10 million of trade creditors and £8 million of corporation tax payable, were transferred to held-for-sale liabilities. Subsequently an impairment charge and associated costs of £88 million was recognised in the income statement and treated as an adjusting item. Completion took place on 6 August 2021. £272 million in respect of foreign exchange previously recognised in other comprehensive income has been reclassified to the income statement. The financial impact of this has also been treated as an adjusting item. In compliance with IAS 7 Statement of cash flows , the £98 million of cash and cash equivalents held at the date of disposal was reported as a cash outflow under investing activities. In 2022, as a result of the unwind of discounting on the deferred proceeds and a true-up on the completion of accounts, a credit of £6 million (2021: £2 million) was recognised. The value of the consideration remains outstanding at 31 December 2022, and £56 million is recognised as a current receivable. In addition, in 2021, £24 million of related investments held at fair value were provided against as a charge to net finance costs given uncertainties regarding recovery of these funds. During 2022, £17 million was recovered with some progress on resolving issues over the release of the remaining funds. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-based payments | 28 Share-based payments The Group operates a number of share-based payment arrangements of which the three principal ones are: LTIP - Performance Share Plan (PSP): Since 2020, performance-related conditional awards under which shares are released automatically following a 3-year vesting period (5-year period for the Executive Directors). LTIP awards granted up to 2019 are nil-cost options exercisable after three years from date of grant (five years for Executive Directors) with a contractual life of 10 years. For awards granted in 2021, 2020 and 2019, vesting is subject to performance conditions measured over a 3-year period (for all awards), based on earnings per share (40% of grant), operating cash flow (20% of grant), total shareholder return (20% of grant) and net turnover (20% of grant). Total shareholder return combines the share price and dividend performance of the Company by reference to one comparator group. For 2022 awards, the performance conditions are based on earnings per share (30% of grant), operating cash flow (20% of grant), total shareholder return (20% of grant), net turnover (15% of the grant) and New Categories revenue growth (15% of the grant). Participants are not entitled to dividends prior to the vesting or exercise of the awards. A cash equivalent dividend accrues through the vesting period (other than for the Executive Directors where additional shares are delivered in lieu of cash) and is paid on vesting. Both equity and cash-settled PSP awards are granted in March each year. In the U.S., PSP awards are made over BAT American Depository Shares (ADSs). Restricted Share Plan (RSP): Introduced in 2020, conditional awards under which shares are released three years from date of grant, subject to a continuous employment condition during the three-year vesting period. Participants are not entitled to dividends prior to shares vesting. A cash equivalent dividend accrues through the vesting period and is paid on vesting. Both equity and cash settled RSP awards are granted in March or September. In the U.S., RSP awards are made over BAT American Depository Shares (ADSs). Deferred Share Bonus Scheme (DSBS): Granted in connection with annual bonuses, conditional awards under which shares are released three years from date of grant subject to a continuous employment condition during the three-year vesting period. A cash equivalent dividend accrues through the vesting period and is paid quarterly (other than for the Executive Directors where additional shares are delivered in lieu of cash). Both equity and cash-settled DSBS awards 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 are granted in March each year by invitation at a 20% discount to the market price. Options under 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) Free shares are granted in April each year (up to an equivalent of £3,600 in any year) under the equity-settled schemes are subject to a three-year holding period. Participants receive dividends during the holding period which are reinvested to buy further shares. The shares are held in a UK-based trust and are normally capable of transfer to participants tax-free after a five-year holding period. International Share Reward Scheme (ISRS) Conditional shares are granted in April each year (up to an equivalent of £3,600 in any year) subject to a three-year vesting period. Dividend equivalents accrue through the vesting period and additional shares are delivered at vesting. Awards may be equity or cash-settled. Partnership Share Scheme Employees can allocate part of their pre-tax salary to purchase shares in British American Tobacco p.l.c. (maximum £1,800 in any 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. The amounts recognised in the income statement in respect of share-based payments were as follows: 2022 2021 2020 Notes Equity- Cash- Equity- Cash- Equity- Cash- LTIP - PSP & RSP 28(a) 38 1 30 — 36 — DSBS 28(b) 36 3 39 2 44 3 Other schemes 7 — 7 — 8 — Total recognised in the income statement 3 81 4 76 2 88 3 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 2022 and 2021: 2022 2021 Vested Unvested Vested Unvested LTIP - PSP & RSP (0.3) 1.9 0.1 1.1 DSBS 0.5 6.6 0.1 6.4 Total liability 0.2 8.5 0.2 7.5 Note: * The reduction in the liabilities for vested LTIPs was due to shares being exercised at prices lower than the share price at date of grant. (a) Long-Term Incentive Plan - PSP & RSP Details of the movements for the equity- and cash-settled LTIP scheme during the years ended 31 December 2022 and 31 December 2021, were as follows: 2022 2021 Equity-settled Cash-settled Equity-settled Cash-settled Outstanding at start of year 9,891 243 10,000 274 Granted during the period 2,927 58 3,440 81 Exercised during the period (1,606) (58) (1,639) (48) Forfeited during the period (2,252) (47) (1,910) (64) Outstanding at end of year 8,960 196 9,891 243 Exercisable at end of year 661 40 611 29 As at 31 December 2022, the Group has 8,960,000 shares (2021: 9,891,000 shares) outstanding which includes 1,749,762 shares (2021: 2,650,364 shares) which are related to Reynolds American LTIP awards from which nil shares (2021: nil shares) 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 £32.84 (2021: £27.67; 2020: £29.37) for equity-settled and £33.01 (2021: £27.59; 2020: £28.68) for cash-settled options. The weighted average British American Tobacco p.l.c. share price for ADS on the New York Stock Exchange at the date of exercise for share options exercised during the period relating to equity-settled Reynolds American LTIP awards was US$38.37 (2021: US$35.93; 2020: US$40.04). The outstanding shares for the year ended 31 December 2022 had a weighted average remaining contractual life of 1.8 years (2021: 3.7 years; 2020: 8.1 years) for the equity-settled scheme, 1.8 years for Reynolds American equity-settled scheme (2021: 1.70 years; 2020: 1.72 years) and 1.7 years (2021: 4.1 years; 2020: 8.1 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 2022 and 31 December 2021, were as follows: 2022 2021 Equity-settled Cash-settled Equity-settled Cash-settled Outstanding at start of year 4,141 223 4,141 200 Granted during the period 1,616 85 1,562 179 Exercised during the period (1,609) (159) (1,497) (142) Forfeited during the period (133) (8) (65) (14) Outstanding at end of year 4,015 141 4,141 223 Exercisable at end of year 1 14 — 1 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 £32.20 (2021: £27.58; 2020: £28.08) for equity-settled and £32.50 (2021: £27.70; 2020: £28.06) for cash-settled options. The outstanding shares for the year ended 31 December 2022 had a weighted average remaining contractual life of 1.3 years (2021: 1.3 years; 2020: 1.4 years) for the equity-settled scheme and 1.1 years (2021: 1.3 years; 2020: 1.4 years) for the cash-settled scheme. Valuation assumptions Assumptions used in the Black-Scholes models to determine the fair value of share options at grant date were as follows: 2022 2021 LTIP – DSBS LTIP – DSBS Expected volatility (%) 27.0 27.0 27.0 27.0 Average expected term to exercise (years) 3.0 3.0 3.0 3.0 Risk-free rate (%) 1.4 1.4 0.2 0.2 Expected dividend yield (%) 6.8 6.8 7.7 7.7 Share price at date of grant (£) 32.18 32.18 27.94 27.94 Fair value at grant date (£)* 27.46 / 26.28 26.28 19.87/22.20 22.20 Fair value at grant date (£)* - Management Board 24.80 / 26.28 26.28 17.35/22.20 22.20 Note: * Where two figures have been quoted for the Long-Term Incentive Plan, the numbers relate to PSP and RSP awards, respectively. Market condition features were incorporated into the Monte-Carlo models for the total shareholder return elements of the LTIP - PSP, in determining fair value at grant date. Assumptions used in these models were as follows: 2022 LTIP - PSP 2021 LTIP - PSP Average share price volatility FMCG comparator group (%) 23 23 Average correlation FMCG comparator group (%) 31 29 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, excluding RSP, 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. |
Group employees
Group employees | 12 Months Ended |
Dec. 31, 2022 | |
Number and average number of employees [abstract] | |
Group employees | 29 Group employees (revised) The average number of persons employed by the Group and its associates during the year, including Directors, was 77,951 (2021: 82,868). 2022 Number 2021 Number U.S. 4,274 4,789 AME 34,162 35,092 APMEA 13,641 14,484 Subsidiary undertakings 52,077 54,365 Associates 25,874 28,503 77,951 82,868 Included within the employee numbers for AME 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. |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Related party disclosures | 30 Related party disclosures The Group has a number of transactions and relationships with related parties, as defined in IAS 24 Related Party Disclosures , all of which are undertaken in the normal course of business. Transactions with CTBAT International Limited (a joint operation) are not included in these disclosures as the results are immaterial to the Group. Intercompany transactions and balances are eliminated on consolidation and therefore are not disclosed. Transactions and balances with associates relate mainly to the sale and purchase of cigarettes and tobacco leaf. The Group’s share of dividends from associates, included in other net income in the table below, was £438 million (2021: £392 million; 2020: £394 million). 2022 £m 2021 £m 2020 £m Transactions – revenue 494 524 495 – purchases (190) (123) (80) – other net income 440 387 388 Amounts receivable at 31 December 51 48 33 Amounts payable at 31 December (4) (3) (5) In 2022, as mentioned in note 27, the Group made a £32 million investment in exchange for 16% of Sanity Group GmbH and made a non-controlling investment in Steady State LLC for £4 million. Also in 2022, the Group acquired a further 3.3% in Hrvatski Duhani d.d. Tobacco Leaf Processing at a cost of £1 million, following the acquisition of an additional 2.7% in 2021 at a cost of £1 million. During 2022, the Group increased its ownership of a wholesale producer and distributor operating in the agriculture sector based in Uzbekistan, FE “Samfruit” JSC to 45.40% for £1 million. In 2021, the Group increased its ownership to 42.61%, for £1 million (2020: increase to 38.63% for £5 million). In 2021, the Group made a capital contribution in Brascuba Cigarrillos S.A. at a cost of £6 million (2020: £17 million). There was a capital reduction in CTBAT International Limited of approximately US$171 million with funds remitted prorata to investors in 2021. On 5 October 2021, PT Bentoel Internasional Investama Tbk (Bentoel) announced its intention to delist from the Indonesia Stock Exchange and go private by conducting a Voluntary Tender Offer (VTO). As part of this, in two phases in November and December 2021, the Group acquired an additional 0.2% of shares in Bentoel from independent shareholders at a cost of £4 million and terminated the total return swap (as explained in note 32). As explained in note 15, in 2022 the Group provided a temporary liquidity facility to the main UK pension fund. As at 31 December 2022 this facility was undrawn. As set out in note 27, in March 2021, the Group acquired a 19.9% equity stake in Organigram. The Group and Organigram also entered into a Product Development Collaboration Agreement following which a Centre of Excellence has been established to focus on developing the next generation of cannabis products with an initial focus on cannabidiol (CBD). 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. 2022 £m 2021 £m 2020 £m The total compensation for key management personnel, including Directors, was: – salaries and other short-term employee benefits 19 18 17 – post-employment benefits 1 1 2 – share-based payments 17 16 13 37 35 32 The following table, which is not part of IAS 24 disclosures, shows the aggregate emoluments of the Directors of the Company. Executive Directors Chair Non-Executive Directors Total 2022 £'000 2021 £'000 2020 £'000 2022 £'000 2021 £'000 2020 £'000 2022 £'000 2021 £'000 2020 £'000 2022 £'000 2021 £'000 2020 £'000 Salary; fees; benefits; incentives – salary 2,129 2,119 2,026 2,129 2,119 2,026 – fees 670 727 714 1,027 1,045 1,028 1,697 1,772 1,742 – taxable benefits 449 420 744 59 55 77 78 2 72 586 477 893 – short-term incentives 3,761 4,128 3,274 3,761 4,128 3,274 – long-term incentives 7,888 3,399 1,294 7,888 3,399 1,294 Sub-total 14,227 10,066 7,338 729 782 791 1,105 1,047 1,100 16,061 11,895 9,229 Pension; other emoluments – pension 320 318 304 320 318 304 – other emoluments 6 6 20 6 6 20 Sub-total 326 324 324 326 324 324 Total emoluments 14,553 10,390 7,662 729 782 791 1,105 1,047 1,100 16,387 12,219 9,553 |
Contingent liabilities and fina
Contingent liabilities and financial commitments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of contingent liabilities [abstract] | |
Contingent liabilities and financial commitments | 31 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 provisions have been made. General Litigation Overview 4. There are a number of legal and regulatory actions, proceedings and claims against Group companies related to tobacco and New Category products that are pending in a number of jurisdictions. These proceedings include, among other things, 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, public nuisance, 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 hundreds of billions of sterling. 7. The Group has successfully managed tobacco-related litigation, and a very high percentage of the tobacco-related litigation claims brought against them, including Engle progeny cases, continue to be dismissed at or before trial. Based on their experience in tobacco-related litigation and the strength of the defences available to them in such litigation, the Group’s companies believe that their successful defence of tobacco-related litigation in the past will continue in the future. 8. It is the policy of the Group to defend tobacco-related litigation claims vigorously; generally, Group companies do not settle such claims. However, Group companies may enter into settlement discussions in certain cases, if they believe it is in their best interests to do so. Exceptions to this 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 (as defined in paragraph 40 below), the funding by various tobacco companies of a US$5.2 billion (approximately £4.3 billion) trust fund contemplated by the Master Settlement Agreement (as described in paragraph 40 below) to benefit tobacco growers, the original Broin flight attendant case, and most of the Engle progeny cases pending in U.S. federal court, after the initial docket of over 4,000 such cases was reduced to approximately 400 cases. The Group believes that the circumstances surrounding these claims are readily distinguishable from the current categories of tobacco-related litigation claims involving Group companies. 9. Although the Group intends to defend all pending cases vigorously, and believes that the Group’s companies have valid bases for appeals of adverse verdicts and valid defences to all actions, and that an outflow of resources related to any individual case is not considered probable, 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. Therefore, the Group does not provide estimates of the financial effect of the contingent liabilities represented by such litigation, as such estimates are not practicable. 10. The following table lists the categories of the tobacco-related actions pending against Group companies as at 31 December 2022 and the increase or decrease from the number of cases pending against Group companies as at 31 December 2021. Details of the quantum of past judgments awarded against Group companies, the majority of which are under appeal, are also identified along with any settlements reached during the relevant period. Given the volume and more active nature of the Engle progeny cases and the Filter Cases in the U.S. described below, and the fluctuation in the number of such cases and amounts awarded from year to year, the Group presents judgment or settlement figures for these cases on a three-year basis. Where no quantum is identified, either no judgment has been awarded against a Group company, or where a verdict has been reached no quantification of damages has been given, or no settlement has been entered into. Further details on the judgments, damages quantification and settlements are included within the case narratives below. For a discussion of the non-tobacco related litigation pending against the Group, see note 31, paragraph 82, et seq. Case Type Notes Case Numbers as at 31 December 2022 (note 31(a)) Case Numbers as at 31 December 2021 (note 31(a)) Change in Number Increase/(decrease) U.S. tobacco-related actions Medical reimbursement cases 31(b) 2 2 No change Class actions 31(c) 20 20 No change Individual smoking and health cases 31(d) 206 222 (16) Engle Progeny Cases 31(e) 665 1,071 (406) Broin II Cases 31(f) 1,183 1,200 (17) Filter Cases 31(g) 46 46 No change State Settlement Agreements – Enforcement and Validity 31(h) 1 2 (1) Non-U.S. tobacco-related actions Medical reimbursement cases 18 19 (1) Class actions 31(i) 12 12 No change Individual smoking and health cases 31(j) 51 68 (17) (Note 31(a)) This includes cases to which the Reynolds American Inc. (Reynolds American) group companies were a party at such date. (Note 31(b)) This category of cases includes the Department of Justice action. See note 31, paragraphs 20-23. (Note 31(c)) See note 31, paragraphs 24-37. (Note 31(d)) See note 31, paragraphs 38-39. (Note 31(e)) See note 31, paragraphs 28-37. (Note 31(f)) See note 31, paragraph 39. (Note 31(g)) See note 31, paragraph 39. (Note 31(h)) See note 31, paragraphs 40-54. (Note 31(i)) Outside the United States, there are 12 class actions being brought against Group companies as at 31 December 2022. These include class actions in the following jurisdictions: Canada (11) and Venezuela (1). For a description of the Group companies’ class actions, see note 31, paragraphs 69-80. For a description of the Quebec Class Actions, see note 31, paragraph 75. All of the class actions in Canada are currently stayed pursuant to a court order. See note 31, paragraph 57. (Note 31(j)) As at 31 December 2022, the jurisdictions with the most active individual cases against Group companies were, in descending order: Brazil (17), Chile (11), Italy (9), Canada (5), Argentina (5) and Ireland (2). There were a further two jurisdictions with one active case only. Out of these 51 active individual cases, as at 31 December 2022 there were two cases in Argentina that have resulted in pending unfavourable judgments. In one case, damages were awarded totalling ARS 685,976 (approximately £3,200) in compensatory damages and ARS 2,500,000 (approximately £11,700) in punitive damages, with post-judgment interest totalling approximately ARS 5,288,000 (approximately £25,000), while in the other case, compensatory damages were awarded totalling ARS 2,850,000 (approximately £13,400), with post-judgment interest totalling approximately ARS 92,638,000 (approximately £435,000). Both judgments are currently on appeal. 11. Certain terms and phrases used in this note 31 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 R. J. Reynolds Tobacco Co. (RJRT), Brown & Williamson Tobacco Corporation (now known as Brown & Williamson Holdings, Inc.) (B&W), and Lorillard Tobacco Company (Lorillard Tobacco), have agreed to resolve disputes with certain plaintiffs without resolving the cases through trial. d) All sums set out in note 31 have been converted to GBP and US$ using the following end closing rates: GBP 1 to US$ 1.2029, GBP 1 to CAD$ 1.6299, GBP 1 to EUR 1.1271, GBP 1 to BRL 6.3510, GBP 1 to AOA 613.3401, GBP 1 to NGN 703.8799, GBP 1 to KRW 1,521.0700, GBP 1 to HRK 8.4921, GBP 1 to JPY 158.7166, GBP 1 to QAR 4.3807, GBP 1 to SAR 4.5205, GBP 1 to ARS 213.0510, GBP 1 to MZN 77.0999 and GBP 1 to EGP 29.7778. U.S. Tobacco Litigation 12. Group companies, notably RJRT (individually and as successor by merger to Lorillard Tobacco) and 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. 13. The total number of U.S. tobacco product liability cases pending as at 31 December 2022 involving RJRT, B&W and/or Lorillard Tobacco was approximately 2,140. 14. 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 U.S. dollars. The cases fall into four broad categories: medical reimbursement cases; class actions; individual cases; and other claims. 15. 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), Reynolds American, Lorillard Inc., other Reynolds American 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. 16. Scheduled trials. Trial schedules are subject to change, and many cases are dismissed before trial. In the U.S., there are 48 cases, exclusive of Engle progeny cases, scheduled for trial as at 31 December 2022 through 31 December 2023, for the Reynolds Defendants: 35 individual smoking and health cases, 11 Filter Cases, and two other cases. There are also approximately 77 Engle progeny cases against RJRT (individually and as successor to Lorillard Tobacco) and B&W scheduled for trial through 31 December 2023. It is not known how many of these cases will actually be tried. 17. Trial results. From 1 January 2020 through 31 December 2022, 44 trials occurred in individual smoking and health, Engle progeny, and patent cases in which the Reynolds Defendants were defendants, including nine where mistrials were declared. Verdicts in favour of the Reynolds Defendants and, in some cases, other defendants, were returned in eight cases, tried in Florida (5), Oregon (1), and Massachusetts (2). Verdicts in favour of the plaintiffs were returned in 23 cases, tried in Florida (18), Massachusetts (1), New Mexico (1), Oregon (2) and North Carolina (1). Three of the cases (in Florida) were dismissed during trial. One of the cases (in Florida) was a punitive damages re-trial. (a) Medical Reimbursement Cases 18. 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. 19. As at 31 December 2022, one U.S. medical reimbursement suit ( Crow Creek Sioux Tribe v. American Tobacco Co. , filed in 1997) was pending against RJRT, B&W and Lorillard Tobacco in a Native American tribal court in South Dakota. The plaintiffs seek to recover actual and punitive damages, restitution, funding of a clinical cessation programme, funding of a corrective public education programme, and disgorgement of unjust profits from sales to minors. There has been no recent activity in this case, and no other medical reimbursement suits are pending against these companies by county or other political subdivisions of the states. U.S. Department of Justice Action 20. On 22 September 1999, the U.S. Department of Justice (DOJ) brought an action in the U.S. District Court for the District of Columbia against various industry members, including RJRT, B&W, Lorillard Tobacco, B.A.T Industries p.l.c. (Industries) and Investments ( United States v. Philip Morris USA Inc. ). The DOJ initially sought (i) recovery of certain federal funds expended in providing health care to smokers who developed alleged smoking-related diseases and (ii) equitable relief under the civil provisions of the Racketeer Influenced and Corrupt Organizations Act (RICO), including (a) disgorgement of roughly US$280 billion (approximately £232.8 billion) in profits allegedly earned from a purported racketeering ‘enterprise’ - a remedy the U.S. Court of Appeals for the DC Circuit ruled in February 2005 was not available - and (b) certain ‘corrective communications’. In September 2000, the district court dismissed Industries for lack of personal jurisdiction and dismissed the health care cost recovery claims. 21. After a roughly nine-month non-jury trial of the remaining RICO claims, the district court issued its Final Judgment and Remedial Order (the Remedial Order) on 17 August 2006. That order found certain defendants, including RJRT, B&W, Lorillard Tobacco and Investments, had violated RICO, imposed financial penalties and 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 Remedial Order also required the defendants to issue ‘corrective communications’ on five subjects, including smoking and health and addiction, and to comply with further undertakings, including maintaining websites 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. 22. The parties appealed and cross-appealed and, on 22 May 2009, the DC Circuit affirmed the district court’s RICO liability judgment but vacated the Remedial Order in part 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 DC Circuit also remanded 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 U.S. Supreme Court denied the parties' petitions for further review. 23. On 22 December 2010, the district court dismissed B&W from the litigation. Due to intervening changes in controlling law, on 28 March 2011, the district court ruled that the 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. In November 2012, the district 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 district court in October 2017 ordered RJRT and the other U.S. tobacco company defendants to fund the publication of compelled public statements in various U.S. media outlets, including in newspapers, on television, on the companies’ websites, and in onserts on cigarette packaging. The compelled public statements in newspapers and on television were completed in 2018 and in package onserts in mid-2020. The compelled public statements now also appear on RJRT websites. The final issue regarding corrective statements was their display at retail point of sale. On 6 December 2022, the district court entered a consent order requiring the tobacco company defendants to have the compelled public statements posted at retail point of sale from October 2023 through June 2025. (b) Class Actions 24. As at 31 December 2022, RJRT, B&W and Lorillard Tobacco were named as defendants in two actions asserting claims on behalf of putative classes of persons allegedly injured or financially impacted by their smoking, and SFNTC was named in 17 putative class actions relating to the use of the words ‘natural’, ‘100% additive-free’ or ‘organic’ in Natural American Spirit advertising and promotional materials. If the classes are or remain certified, separate trials may be needed to assess individual plaintiffs’ damages. Among the pending class actions, 16 specified the amount of the claim in the complaint and alleged that the plaintiffs were seeking in excess of US$5 million (approximately £4.16 million) and one that alleged that the plaintiffs were seeking less than US$75,000 (approximately £62,349) per class member plus unspecified punitive damages. No Additive/Natural/Organic Claim Cases 25. A total of 17 pending putative class actions were filed in nine U.S. federal district courts against SFNTC, a subsidiary of Reynolds American, 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. In these actions, the plaintiffs allege that the use of these terms suggests that Natural American Spirit brand 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. The actions seek various categories of recovery, including economic damages, injunctive relief (including medical monitoring and cessation programmes), interest, restitution, disgorgement, treble and punitive damages, and attorneys’ fees and costs. In April 2016, the U.S. Judicial Panel on Multidistrict Litigation (JPML) consolidated the 16 cases pending at that time for pre-trial purposes before a federal district court in New Mexico, and a later-filed case was transferred there for pre-trial purposes in 2018. On 21 December 2017, that court granted the defendants’ motion to dismiss in part, dismissing a number of claims with prejudice, and denied it in part. The district court conducted a five-day hearing on the motion for class certification and on the motion challenging the admissibility of expert opinion testimony in December 2020. The parties filed post-hearing briefs in January 2021 and filed proposed findings of fact and conclusions of law in February 2021. A decision is pending. Other Putative Class Actions 26. Jones v. American Tobacco Co. is a putative class action filed in December 1998 in the Circuit Court, Jackson County, Missouri, against various U.S. cigarette manufacturers, including RJRT, B&W, Lorillard Tobacco and certain parent companies. The action was brought by a plaintiff on behalf of a putative class of Missouri tobacco product users and purchasers 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. 27. Young v. American Tobacco Co. is a putative class action filed in November 1997 in the Circuit Court, Orleans Parish, Louisiana against various U.S. cigarette manufacturers, including RJRT, B&W, Lorillard Tobacco and certain parent companies. This 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. The action 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 an ongoing smoking cessation programme ordered by the court in a now-concluded Louisiana state court certified class action, Scott v. American Tobacco Co. Engle Class Action and Engle Progeny Cases (Florida) 28. In July 1998, trial began in Engle v. R. J. Reynolds Tobacco Co. , a then-certified class action filed in Circuit Court, Miami-Dade County, Florida, against U.S. cigarette manufacturers, including RJRT, B&W, Lorillard Tobacco and Lorillard Inc. The then-certified class consisted of Florida citizens and residents, and their survivors, who suffered from smoking-related diseases that first manifested between 5 May 1990, and 21 November 1996, and were caused by an addiction to cigarettes. In July 1999, the jury in this Phase I found against RJRT, B&W, Lorillard Tobacco, Lorillard Inc. and the other defendants on common issues relating to the defendants’ conduct, general causation, the addictiveness of cigarettes, and entitlement to punitive damages. 29. In July 2000, the jury in Phase II awarded the class a total of approximately US$145 billion (approximately £120.5 billion) in punitive damages, apportioned US$36.3 billion (approximately £30.2 billion) to RJRT, US$17.6 billion (approximately £14.6 billion) to B&W, and US$16.3 billion (approximately £13.6 billion) to Lorillard Tobacco and Lorillard Inc. The three class representatives in the Engle class action were awarded US$13 million (approximately £10.8 million) in compensatory damages. 30. 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 class representatives to stand and setting aside the punitive damages award. The court preserved certain of the jury’s Phase I findings, including that cigarettes can cause certain diseases, nicotine is addictive, and defendants placed defective cigarettes on the market, breached duties of care, concealed health-related information and conspired. Putative Engle class members were permitted to file individual lawsuits, deemed ‘ Engle progeny cases’, against the Engle defendants, within one year of the Supreme Court’s decision (subsequently extended to 11 January 2008). 31. During 2015, RJRT and Lorillard Tobacco, together with Philip Morris USA Inc. (PM USA), settled virtually all of the Engle progeny cases then pending against them in federal district court. The total amount of the settlement was US$100 million (approximately £83.1 million) divided as follows: RJRT US$42.5 million (approximately £35.3 million); PM USA US$42.5 million (approximately £35.3 million); and Lorillard Tobacco US$15 million (approximately £12.5 million). The settlement covered more than 400 federal Engle progeny cases but did not cover 12 federal progeny cases previously tried to verdict and then pending on post-trial motions or appeal, and two federal progeny cases filed by different lawyers from the ones who negotiated the settlement for the plaintiffs. 32. As at 31 December 2022, there were approximately 665 Engle progeny cases pending in which RJRT, B&W and/or Lorillard Tobacco have all been named as defendants and served. These cases include claims by or on behalf of 838 plaintiffs. In addition, as at 31 December 2022, RJRT was aware of five additional Engle progeny cases that have been filed but not served. The number of pending cases fluctuates for a variety of reasons, including voluntary and involuntary dismissals. Voluntary dismissals include cases in which a plaintiff accepts an ‘offer of judgment’ from RJRT and/or RJRT’s affiliates and indemnitees. An offer of judgment, if rejected by the plaintiff, preserves the offering party's right to seek attorneys’ fees under Florida law in the event of a favourable verdict. Such offers are sometimes made through court-ordered mediations. 33. 31 trials occurred in Engle progeny cases in Florida state and federal courts against RJRT, B&W and/or Lorillard Tobacco from 1 January 2020 through 31 December 2022, and additional state court trials are scheduled for 2023. 34. The following chart identifies the number of trials in Engle progeny cases as at 31 December 2022 and additional information about the adverse judgments entered: Trials/verdicts/judgments of individual Engle progeny cases from 1 January 2020 through 31 December 2022: Total number of trials 31 Number of trials resulting in plaintiffs’ verdicts 16 ** Total damages awarded in final judgments against RJRT US$92,934,000 (approximately £77 million) Amount of overall damages comprising ‘compensatory damages’ (approximately) US$57,869,000 (of overall US$92,934,000 ) (approximately £48 million of £77 million) Amount of overall damages comprising ‘punitive damages’ (approximately) US$35,065,000 (of overall US$92,934,000) (approximately £29 million of £77 million) Note: ** Of the 16 trials resulting in plaintiffs’ verdicts 1 January 2020 to 31 December 2022 (note 31(k)): Number of adverse judgments appealed by RJRT (note 31(l)) 12 Number of adverse judgments, in which RJRT still has time to file an appeal 2 Number of adverse judgments in which an appeal was not, and can no longer be, sought 2 Appeals of individual Engle progeny cases 1 January 2020 to 31 December 2022: Number of adverse judgments appealed by RJRT (note 31(m)) 13 (Note 31(k)) The 31 trials include two cases that were tried twice ( Yount v. R.J. Reynolds Tobacco Co. and Rutkowski v. R. J. Reynolds Tobacco Co. ). In each case, the first trial resulted in mistrial, while the second resulted in a verdict for plaintiff. The 31 cases also include one trial that resulted in a plaintiff verdict, but a new trial was ordered ( Leidinger v. R. J. Reynolds Tobacco Co. ). (Note 31(l)) Of the 12 adverse verdicts appealed by RJRT as a result of judgments arising in the period 1 January 2020 to 31 December 2022: a. eight appeals remain undecided in the District Courts of Appeal; b. two appeals were decided and/or closed in the District Court of Appeals; c. one judgment was affirmed and paid; and d. there was one appeal in which the case was resolved and appeal dismissed. (Note 31(m)) In addition to the 12 cases discussed in note 31(l), RJRT appealed one additional case during the 1 January 2020 to 31 December 2022 period, the original plaintiff verdict of which was returned in November 2019. 35. By statute, Florida applies a US$200 million (approximately £166.3 million) bond cap to all Engle progeny cases in the aggregate. Individual bond caps for any given Engle progeny case vary depending on the number of judgments in effect at a given time. Judicial attempts by several plaintiffs in the Engle progeny cases to challenge the bond cap as violating the Florida Constitution have failed. In addition, bills have been introduced in sessions of the Florida legislature that would eliminate the Engle progeny bond cap, but those bills have not been enacted as at 31 December 2022. 36. In 2022, RJRT paid judgments in 11 Engle progeny cases. Those payments totalled US$13.2 million (approximately £11.0 million) in compensatory or punitive damages. Additional costs were paid in respect of attorneys’ fees and statutory interest. 37. In addition, accruals for damages and attorneys’ fees and statutory interest for 14 cases and three resolution bundles ( Konzelman v. R. J. Reynolds Tobacco Co., Ledo v. R. J. Reynolds Tobacco Co., Blackwood v. R. J. Reynolds Tobacco Co., Lane v. R. J. Reynolds Tobacco Co. , McKeehan v. R. J. Reynolds Tobacco Co. , Woodley v. R. J. Reynolds Tobacco Co. , Rodriguez v. R. J. Reynolds Tobacco Co. , French v. R. J. Reynolds Tobacco Co. , Rembe v. R. J. Reynolds Tobacco Co. , Canady v. R. J. Reynolds Tobacco Co. , Redburn v. R. J. Reynolds Tobacco Co. , Phelps v. R. J. Reynolds Tobacco Co. , Wlasiuk v. R. J. Reynolds Tobacco Co. , Leidinger v. R. J. Reynolds Tobacco Co. , the Gary Williams Engle progeny bundle, the Ogle/Wiggins Child Engle progeny bundle, and the Ogle Engle progeny bundle) were recorded in Reynolds American’s consolidated balance sheet as at 31 December 2022 to the value of approximately US$53 million (approximately £44.1 million). (c) Individual Cases 38. As at 31 December 2022, 206 individual cases were pending in the United States against RJRT, B&W and/or Lorillard Tobacco. 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 Engle progeny cases, Broin II cases, and Filter Cases discussed above and below. One of the individual cases is brought by |
Interests in subsidiaries
Interests in subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
Interests in subsidiaries | 32 Interests in subsidiaries Subsidiaries with material non-controlling interests Non-controlling interests principally arise from the Group’s listed investment in Bangladesh (British American Tobacco Bangladesh Company Limited) where the Group held 72.91% in 2022, 2021 and 2020. Summarised financial information for Bangladesh is shown below as required by IFRS 12 Disclosure of interest in other entities . 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 2022 £m 2021 £m 2020 £m Revenue 732 640 553 Profit for the year 153 127 101 – Attributable to non-controlling interests 41 34 27 Total comprehensive income 132 127 91 – Attributable to non-controlling interests 36 34 25 Dividends paid and other appropriations made to non-controlling interests (32) (28) (31) Summary net assets: Non-current assets 322 303 271 Current assets 253 345 271 Non-current liabilities 78 70 58 Current liabilities 166 262 190 Total equity at the end of the year 331 316 294 – Attributable to non-controlling interests 90 86 80 Net cash generated from operating activities 164 52 137 Net cash used in investing activities (46) (26) (11) Net cash used in financing activities (147) (55) (111) Differences on exchange 4 — (1) (Decrease)/increase in net cash and cash equivalents (25) (29) 14 Net cash and cash equivalents at 1 January 1 30 16 Net cash and cash equivalents at 31 December (24) 1 30 Subsidiaries subject to restrictions: As a result of the Group’s Canadian subsidiary, Imperial Tobacco Canada (ITCAN), entering CCAA protection, the assets of ITCAN Summarised financial information 2022 £m 2021 £m Non-current assets 2,554 2,403 Current assets 2,193 1,630 Non-current liabilities (114) (109) Current liabilities (526) (479) 4,107 3,445 Under the terms of CCAA, the court has appointed FTI Consulting Canada Inc. to act as a monitor. This monitor has no operational input and is not involved in the management of the business. The Group considers that ITCAN continues to meet the requirements of IFRS 10 Consolidated Financial Statements, and, until such requirements are not met, the Group will continue to consolidate the results of ITCAN. Whilst the Group continues to control the operations of its Canadian subsidiary, there are restrictions over the ability to access or use certain assets including the ability to remit dividends. Included in non-current assets for 2022 and 2021 is goodwill of £2.5 billion subject to impairment reviews (note 12). Included in current liabilities are trade and other payables of £391 million (2021: £341 million), the majority of which are amounts payable in respect of duties and excise. A breakdown of current assets has been provided below. 2022 £m 2021 £m Cash and cash equivalents* 1,569 1,114 Inventory 182 126 Investments held at fair value 396 351 Other 46 39 2,193 1,630 Note: * Cash and cash equivalents above include £1,411 million (2021: £1,024 million) of restricted cash and cash equivalents. The Group defines restricted cash and cash equivalents as where there are significant restrictions on its ability to access or use the assets and settle the liabilities of the Group, but excludes cash and cash equivalents where there are also outstanding local currency borrowings or where there is an outstanding excise liability. In addition, dividends payable would also be excluded from restricted cash and cash equivalents if the dividend has been approved by the necessary regulatory channels. Refer to note 31 for information on the Quebec Class Actions. Other shareholdings At 31 December 2022, the Group holds almost 100% (2021: 99%; 2020: 92%) of the equity shares of PT Bentoel Internasional Investama Tbk (Bentoel). Between 2011 and 2021, the Group was party to a total return swap on approximately 7% of Bentoel’s issued capital. While the Group did not have legal ownership of these shares in this period, it retained the risks and rewards associated with them which resulted in the Group continuing to recognise an effective interest in 99% of Bentoel’s net assets and results. In 2021, the Group terminated the total return swap as part of its intention to delist from the Indonesia Stock Exchange and go private by conducting a Voluntary Tender Offer (VTO), as a result of which the Group acquired 0.2% additional shares at a cost of £4 million. Shares from over one thousand individual shareholders who could not be contacted are in the process of being transferred to a courts-approved Public Trustee. When this is complete, approvals will be sought from the relevant authorities to delist the company. |
Summarised Financial Informatio
Summarised Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Condensed Consolidating Financial Information [Abstract] | |
Summarised financial information | 33 Summarised financial information The following summarised financial information is required by the rules of the Securities and Exchange Commission and has been prepared as a requirement of the Regulation S-X 3-10 in respect of the guarantees of: – US$11.00 billion of outstanding bonds issued by B.A.T Capital Corporation (BATCAP) in connection with the acquisition of Reynolds American Inc. (Reynolds American), including registered bonds issued in exchange for the initially issued bonds (the 2017 Bonds); – US$12.15 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on July 17, 2019, and US$0.6 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on July 1, 2022 pursuant to which BATCAP or BATIF may issue an indefinite amount of debt securities; and – US$2.50 billion of outstanding bonds issued by BATIF pursuant to the Shelf Registration Statement on Form F-3 filed on July 17, 2019, pursuant to which BATCAP or BATIF may issue an indefinite amount of debt securities. As of July 28, 2020, all relevant Group entities suspended their reporting obligations with respect to the US$7.7 billion (2022: US$7.7 billion) of Reynolds American unsecured notes and US$40.9 million (2022: US$40.9 million) of Lorillard unsecured notes. As such, no summarised financial information is provided with respect to these securities. As described below, Reynolds American is a subsidiary guarantor of all outstanding series of BATCAP and BATIF bonds. Under the terms of the indentures governing such notes, any subsidiary guarantor (including Reynolds American) other than BATCAP or BATIF, as applicable, BATNF and BATHTN, will automatically and unconditionally be released from all obligations under its guarantee, and such guarantee shall thereupon terminate and be discharged and of no further force or effect, in the event that (1) its guarantee of all then outstanding notes issued under the Group’s EMTN Programme is released or (2) at substantially the same time its guarantee of the debt securities is terminated, such subsidiary guarantor is released from all obligations in respect of indebtedness for borrowed money for which such subsidiary guarantor is an obligor (as a guarantor or borrower). Under the EMTN Programme, Reynolds American’s guarantee is released if at any time the aggregate amount of indebtedness for borrowed money, subject to certain exceptions, for which Reynolds American is an obligor does not exceed 10% of the outstanding long-term debt of BAT as reflected in the balance sheet included in BAT’s most recent publicly released interim or annual consolidated financial statements. Reynolds American’s guarantee may be released notwithstanding Reynolds American guaranteeing other indebtedness, provided Reynolds American’s guarantee of outstanding notes issued under the EMTN Programme is released. If Reynolds American’s guarantee is released, BAT is not required to replace such guarantee, and the debt securities will have the benefit of fewer subsidiary guarantees for the remaining maturity of the debt securities. Note: The following summarised financial information report the unconsolidated contribution of each applicable company to the Group’s consolidated results and not the separate financial statements for each applicable company as local financial statements are prepared in accordance with local legislative requirements and may differ from the financial information provided below. In particular, in respect of the U.S. region, all financial statements and financial information provided by or with respect to the U.S. business or RAI (and/or RAI and its subsidiaries (collectively, the Reynolds Group)) are prepared on the basis of US GAAP and constitute the primary financial statements or financial information of the U.S. business or RAI (and/or the Reynolds 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 IFRS. To the extent any such financial information provided in these financial statements relates to the U.S. business or RAI (and/or the Reynolds Group), it is provided as an explanation of the U.S. business’s or RAI’s (and/or the Reynolds Group’s) primary US GAAP based financial statements and information. The subsidiaries disclosed below are wholly-owned and the guarantees provided are full and unconditional, and joint and several: a. British American Tobacco p.l.c. (as the parent guarantor), referred to as ‘BAT p.l.c.’ in the financials below; b. B.A.T Capital Corporation (as an issuer or a subsidiary guarantor, as the case may be), referred to as ‘BATCAP’ in the financials below; c. B.A.T. International Finance p.l.c. (as an issuer or a subsidiary guarantor, as the case may be), referred to as ‘BATIF’ in the financials below; d. B.A.T. Netherlands Finance B.V. (as a subsidiary guarantor), referred to as ‘BATNF’ in the financials below; e. Reynolds American Inc. (as a subsidiary guarantor), referred to as ‘RAI’ in the financials below; and f. British American Tobacco Holdings (The Netherlands) B.V. (as a subsidiary guarantor of the 2017 Bonds only), referred to as ‘BATHTN’ in the financials below. In accordance with Regulation S-X 13-01, information in respect of investments in subsidiaries that are not issuers or guarantors has been excluded from non-current assets as shown in the balance sheet table below. The ‘BATHTN’ column in the summarised financial information is only applicable in the context of the 2017 Bonds. British American Tobacco Holdings (The Netherlands) B.V. (BATHTN) is not an issuer nor guarantor of any of the other securities referenced in this note. None of the issuers or other guarantors has material balances with or an investment in BATHTN. Investments in subsidiaries represents share capital acquired in relation to or issued by subsidiary undertakings. Summarised Financial Information Year ended 31 December 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Income Statement Revenue — — — — — — (Loss)/profit from operations (115) (1) (2) — 5 1 Dividend income 7,515 — — — 4,835 148 Net finance income/(costs) 264 (52) 187 — (500) — Profit/(loss) before taxation 7,664 (53) 185 — 4,340 149 Taxation on ordinary activities (10) (9) (21) — 110 — Profit/(loss) for the year 7,654 (62) 164 — 4,450 149 Intercompany Transactions – Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (116) (1) (2) — 47 — Transactions with non-issuer/non-guarantor subsidiaries net finance (cost)/income 52 815 732 — 25 — Dividend income from non-issuer/non-guarantor subsidiaries 7,515 — — — 4,835 148 Summarised Financial Information Year ended 31 December 2021 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Income Statement Revenue — — — — — — (Loss)/profit from operations (111) (1) (2) — 3 — Dividend income 6,200 — — — 4,827 164 Net finance income/(costs) 170 (43) 63 1 (421) — Profit/(loss) before taxation 6,259 (44) 61 1 4,409 164 Taxation on ordinary activities 5 19 1 — 97 — Profit/(loss) for the year 6,264 (25) 62 1 4,506 164 Intercompany Transactions – Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (111) (1) (2) — 36 — Transactions with non-issuer/non-guarantor subsidiaries net finance (cost)/income (2) 709 370 — 28 — Dividend income from non-issuer/non-guarantor subsidiaries 6,200 — — — 4,827 164 Summarised Financial Information As at 31 December 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Balance Sheet Non-current assets 1,917 20,962 2,480 1,500 405 45 Current assets 9,166 7,947 42,748 22 1,135 8 Non-current liabilities 1,580 20,018 14,058 1,500 10,094 12 Non-current borrowings 1,572 19,762 13,510 1,500 10,033 — Other non-current liabilities 8 256 548 — 61 12 Current liabilities 55 8,749 29,379 21 1,011 1 Current borrowings 23 8,657 28,525 21 568 1 Other current liabilities 32 92 854 — 443 — Intercompany Transactions – Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 9,117 17,003 42,752 — 700 8 Amounts due to non-issuer/non-guarantor subsidiaries 5 3,890 22,702 — 34 1 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 26,690 1,573 Summarised Financial Information As at 31 December 2021 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Balance Sheet Non-current assets 1,916 18,192 4,986 1,417 357 75 Current assets 8,443 3,583 35,772 21 1,033 19 Non-current liabilities 9 17,024 13,667 1,417 8,778 19 Non-current borrowings — 16,965 13,560 1,417 8,719 — Other non-current liabilities 9 59 107 — 59 19 Current liabilities 1,607 4,633 25,451 20 882 10 Current borrowings 1,580 4,602 25,081 20 263 10 Other current liabilities 27 31 370 — 619 — Intercompany Transactions - Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 8,405 14,999 38,539 — 1,360 19 Amounts due to non-issuer/non-guarantor subsidiaries — 3,006 20,422 — 48 9 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 23,643 1,488 Perpetual hybrid bonds BAT p.l.c. has issued two €1 billion of perpetual hybrid bonds which have been classified as equity as there is no contractual obligation to either repay the principal or make payments of interest (note 22(d)). BAT p.l.c.’s unconsolidated contribution to the Group’s consolidated equity results is shown below: BAT p.l.c. As at 31 December 2022 £m 2021 £m Total equity 36,682 35,977 Share capital 614 614 Share premium 113 107 Perpetual hybrid bonds 1,685 1,685 Other equity 34,270 33,571 |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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) and UK-adopted international accounting standards. UK-adopted international accounting standards differ 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. In performing its going concern assessment, management considered forecasts and liquidity requirements covering a period of at least twelve months from the date of approval of the financial statements and including the Group’s ability to fund its operations and generate cash to pay for debt as it falls due and takes into account the payments arising from the Master Settlement Agreement due in the U.S. in 2023 and other known liabilities or future payments (including interim dividends), as they fall due. This assessment includes consideration of geopolitical events in Europe and the general outlook in the global economy, as well as plausible downside scenarios after taking into account the Group’s Principal Risks and how they could impact the Group’s operations. Any mitigating actions, should they be required, are all within management’s control and could include reductions in discretionary spending such as acquisitions and capital expenditure, or drawdowns on committed facilities. After reviewing the Group’s annual budget, plans and financing arrangements, the Directors consider that the Group has adequate resources to continue operating and that it is therefore appropriate to continue to adopt the going concern basis in preparing the Annual Report and Form 20‑F. Management have, in preparing the financial statements, considered the impact of climate change. Management has considered the impact of climate change and determined that the impact is not expected to be material: – On the going concern of the Group, over the next three years; – On the Group’s assessment of future cash flows (including as related to the capital expenditure plans as related to the Group’s emission commitments) as used in impairment assessments for the value in use of non-current assets including goodwill (note 12(e)); and – In respect of factors including useful lives and residual values that determine the carrying value of non-financial current assets. There has been no material impact identified on the financial reporting judgements and estimates. Management is aware that the risks related to climate change are developing and ever changing. Accordingly, these judgements and estimates will be kept under review as the future impacts of climate change on the Group’s financial statements depend on environmental, regulatory and other factors outside of the Group’s control which are not all currently known. 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 critical accounting judgements include: – the identification and quantification of adjusting items, which are separately disclosed as memorandum information, is explained below and the impact of these on the calculation of adjusted earnings per share is described in note 11; – the presentation of disposal groups, including assets classified as held-for-sale and liabilities associated with assets classified as held-for-sale, including the assessment as to whether control would be lost based on the proposed terms of the sale and the impact of regulatory procedures, where applicable, to approve the sale, including amounts in respect of the proposed disposal of the Group’s businesses in Russia and Belarus (note 27(d)); – the determination as to whether to recognise provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims, as well as other contingent liabilities. 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 31. Judgement is necessary to assess the likelihood that a pending claim is probable (more likely than not to succeed), possible or remote; – 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. The application of these policies to Group subsidiaries in territories including Canada is explained in note 32; – the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on free access to foreign currency, or multiple exchange rates; and – the determination as to whether perpetual hybrid bonds should be classified as equity instead of borrowings (note 22(d)). The critical accounting estimates include: – t he review of asset values, including indefinite life assets, such as goodwill and certain trademarks and similar intangibles. The key assumptions used in respect of the impairment testing are the determination of cash-generating units, the budgeted and forecast 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 12; – the estimation of value ascribed to held-for-sale assets and disposal groups, which are measured at the lower of carrying amount and fair value of expected consideration less costs to sell, reflecting management’s best estimates after taking into account the amount and anticipated timing of sales proceeds less any costs to sell; – 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 15; and – 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 16, and a contingent tax asset is explained in note 10(b). Other provisions for liabilities and charges are as set out in note 24. Litigation related deposits are shown in note 17. The application of these accounting policies to the payments made and credits recognised under the Master Settlement Agreement by Reynolds American Inc. (Reynolds American) is described in note 6(b). |
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. Non-controlling interests represent the share of earnings or equity in subsidiaries that is not attributable, directly or indirectly, to shareholders of the Group. Business combinations are accounted for using the acquisition method with identifiable assets, liabilities and contingent liabilities acquired measured at fair value at the date of acquiring control. Disposals of subsidiaries and businesses due to sale or market withdrawal are accounted for as disposals from the date of losing control and may be classified as held-for-sale disposal groups at the balance sheet date if specific tests under IFRS 5 Non-current Assets Held For Sale and Discontinued Operations are met. A disposal group is a group of assets to be disposed of, by sale or otherwise, together in a single transaction. Discontinued operations, where applicable, comprise material disposal groups representing a significant geographical area of operations or business activities. 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 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 and hyperinflationary territories 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 free access to foreign currency or multiple exchange rates, the applicable rates of exchange are regularly reviewed. 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 in the Translation reserve within Other reserves, as shown in note 22. 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. In addition, for hyperinflationary countries where the effect on the Group results would be significant, the financial statements in local currency are adjusted to reflect the impact of local inflation prior to translation into sterling, in accordance with IAS 29 Financial Reporting in Hyperinflationary Economies . Where applicable, IAS 29 requires all transactions to be indexed by an inflationary factor to the balance sheet date, potentially leading Impairment of Assets , where appropriate, to ensure that the carrying value correctly reflects the economic value of such assets. |
Revenue | Revenue Revenue principally comprises sales of cigarettes, other tobacco products, and nicotine products, to external customers. Revenue excludes duty, excise and other taxes related to sales in the period and is stated after deducting rebates, returns and other similar discounts and payments to direct and indirect customers. For the vast majority of the Group’s sales, revenue is recognised when control of the goods is transferred to a customer at a point in time; this is usually evidenced by a transfer of the significant risks and rewards of ownership upon delivery to the customer, which in terms of timing is not materially different to the date of shipping. For certain e-commerce subscription sales, revenue is allocated to each component of the subscription, with revenue recognised as each component is delivered to the customer. These sales are not material to the Group’s results. |
Retirement benefit costs | Retirement benefit costs The Group operates both defined benefit and defined contribution schemes including post-retirement healthcare schemes. 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. The net deficit or surplus for each defined benefit pension scheme is calculated in accordance with IAS 19 Employee Benefits 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. 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 profit or loss in the year in which it is incurred. Development expenditure is charged to profit or loss in the year it is incurred, unless it meets the recognition criteria of IAS 38 Intangible Assets |
Taxation | Taxation Tax is chargeable on the profits for the period, together with deferred tax. The current income tax charge is calculated |
Deferred taxation | Deferred tax 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 taxes and applies IFRIC 23 Uncertainty over Income Tax Treatments |
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 |
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. Prior to 2021, these assets were amortised on a straight-line basis over periods not exceeding 10 years and are currently amortised on a straight-line basis over periods not exceeding 13 years due to ongoing use of the assets and the extension of third-party supplier support. In 2021 and 2022, the impact of this change in accounting estimate was a reduction in annual amortisation expense of £26 million and, in 2023, is estimated to be a reduction in annual amortisation expense of £12 million . |
Property, plant and equipment | Property, plant and equipment Purchased 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. Non-current assets are classified as held-for sale if their carrying value will be recovered principally through a sale transaction rather than through continuing use and if all of the conditions of IFRS 5 are met. Purchased 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% |
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 |
Leased assets | Leased assets The Group applies IFRS 16 Leases to contractual arrangements which are, or contain, leases of assets. Lease liabilities are initially recognised at an amount equal to the present value of estimated contractual lease payments at the inception of the lease, after taking into account any options to extend the term of the lease. Lease commitments are discounted to present value using the interest rate implicit in the lease if this can be readily determined, or the applicable incremental rate of borrowing, as appropriate. Right-of-use lease assets are initially recognised at an amount equal to the lease liability, adjusted for initial direct costs in relation to the assets, then depreciated over the shorter of the lease term and their estimated useful lives. Right-of-use assets are included as part of property, plant and equipment in note 13, with the lease liabilities included as part of borrowings in note 23. |
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 |
Impairment of financial assets held at amortized cost | Impairment of financial assets held at amortised cost Loss allowances for expected credit losses on financial assets which are held at amortised cost are recognised on initial recognition of the underlying asset. As permitted by IFRS 9 Financial Instruments , loss allowances on trade receivables arising from the recognition of revenue under IFRS 15 Revenue from Contracts with Customers are initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal |
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. |
Biological assets | Biological Assets The investments in associates and joint ventures shown in the Group balance sheet include biological assets held by Organigram Holdings Inc. In accordance with IAS 41 Agriculture , the Group measures biological assets at fair value less costs to sell up to the point of harvest, at which point this becomes the basis for the cost of finished goods inventories after harvest with subsequent expenditures incurred on these being capitalised, where applicable, in accordance with IAS 2 Inventories . Unrealised fair value gains and losses arising during the growth of biological assets are recognised immediately in the income statement. |
Equity instruments | Equity instruments Instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements. Instruments that cannot be settled in the Group’s own equity instruments and that include no contractual obligation to deliver cash or another financial asset are classified as equity. Equity instruments issued by the Group are recognised at the proceeds received, net of issuance costs. On 27 September 2021, the Group issued two €1 billion perpetual hybrid bonds. As the Group has the unconditional right to avoid transferring cash or another financial asset in relation to these bonds, they are classified as equity instruments in the consolidated financial statements. |
Financial instruments | Financial instruments The Group’s business model for managing financial assets is set out in the Group Treasury Manual which notes that the primary objective with regard to the management of cash and investments is to protect against the loss of principal. Additionally, the Group aims: to maximise Group liquidity by concentrating cash at the Centre, to align the maturity profile of external investments with that of the forecast liquidity profile, to wherever practicable, match the interest rate profile of external investments to that of debt maturities or fixings, and to optimise the investment yield within the Group’s investment parameters. The majority of financial assets are held in order to collect contractual cash flows (typically cash and cash equivalents and loans and other receivables), but some assets (typically investments) are held for investment potential. 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. In addition, current liabilities include amounts where the entity does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. The Group early adopted the phase one and phase two Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures regarding Interest Rate Benchmark Reform in 2019 and 2020, respectively. The Amendments provide an exemption for certain hedging relationships directly affected by changes in interest rate benchmarks where the reform gives rise to uncertainties regarding the interest rate designated as a hedged risk, or the timing or amount of interest rate cash flows of either the hedged item or of the hedging instrument, such that without the exemption the relationship might not qualify for hedge accounting. In addition, the Amendments provide a practical expedient for financial assets and financial liabilities that are modified or have existing contractual terms activated that change the basis for determining the contractual cash flows as a result of Interest Rate Benchmark Reform, such that the change to the contractual cash flows is applied prospectively by revising the effective interest rate. Non-derivative financial assets are classified on initial recognition in accordance with the Group’s business model as investments, loans and receivables, or cash and cash equivalents and accounted for as follows: – Investments : these are non-derivative financial assets that cannot be classified as loans and other receivables or cash – Loans and other receivables : these are non-derivative finan cial assets with fixed or determinable payments that are solely payments of principal and interest on the principal amount outstanding, that are primarily held in order to collect contractual cash flows. These balances include trade and other receivables, which are measured at amortised cost, using the effective interest rate method, and stated net of allowances for credit losses, and deposits with banks and other financial institutions which cannot be classified as cash and cash equivalents. In addition, as explained in no te 17, certain litigation related deposits are recognised as assets within loans and other receivables where management has determined that these payments represent a resource controlled by the entity as a result of past events. These deposits are held at the fair value of consideration transferred less impairment, if applicable, and have not been discounted. – 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 their as current borrowings in the liabilities section on the balance sheet. 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 , including borrowings and trade payables, 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. Drawdowns and repayments of short-term borrowings which have a maturity period of three months or less are stated net in the cash flow statement; drawdowns and repayments on all other borrowings are stated gross in the cash flow statement. As shown in note 23, certain borrowings are subject to fair value hedges, as defined below. 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. These are referred to as ‘held-for-trading’. In order to qualify for hedge accounting, the Group is required to document prospectively the economic relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the economic 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 re-performed 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 The Company pays interim quarterly dividends, and the Group recognises the interim dividend in the period in which it is paid. |
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. 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 New Category products are reported as part of the results of each geographic region. The prices agreed between Group companies for intra-group |
Adjusting items | Adjusting items Adjusting items are significant items of income or expense in revenue, profit from operations, net finance costs, taxation and The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance and are used to derive the Group’s principal non-GAAP measures of adjusted profit from operations and adjusted diluted earnings per share, all of which are before the impact of adjusting items and which are reconciled from profit from operations and diluted earnings per share . |
Provisions | ProvisionsProvisions 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. These exposures are regularly reviewed on an on-going basis and provision for this litigation (including legal costs) is made at such time as an unfavourable outcome becomes probable and the amount can be reasonably estimated. Contingent assets are possible assets whose existence will only 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. As explained in note 17, certain litigation-related deposits are recognised as assets within loans and other receivables where management has determined that these payments represent a resource controlled by the entity. These deposits are held at the fair value of consideration transferred less impairment, if applicable , and have not been discounted. |
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, but are not expected to 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, 2022 | |
Reportable Segments [Abstract] | |
Disclosure of Operating Segment Information | The following table shows 2022 revenue at current rates, and 2022 revenue translated using 2021 rates of exchange. The 2021 figures are stated at the 2021 rates of exchange. 2022 2021 Revenue Constant rates Translation exchange Revenue Current Rates Revenue U.S. 11,358 1,281 12,639 11,691 AME 9,119 168 9,287 8,444 APMEA 5,796 (67) 5,729 5,549 Revenue 26,273 1,382 27,655 25,684 The following table shows 2021 revenue at current rates, and 2021 revenue translated using 2020 rates of exchange. The 2020 figures are stated at the 2020 rates of exchange. 2021 2020 Revenue Constant rates Translation exchange Revenue Current Rates Revenue U.S. 12,530 (839) 11,691 11,473 AME 8,925 (481) 8,444 8,366 APMEA 6,106 (557) 5,549 5,937 Revenue 27,561 (1,877) 25,684 25,776 The following table shows 2022 profit from operations and adjusted profit from operations at current rates, and 2022 adjusted profit from operations translated using 2021 rates of exchange. The 2021 figures are stated at the 2021 rates of exchange. 2022 2021 Adjusted* segment result Constant rates Translation exchange Adjusted* segment result Current rates Adjusting* items Segment result Current rates Adjusted* segment result Adjusting* items Segment result U.S. 6,095 740 6,835 (630) 6,205 5,887 (321) 5,566 AME 3,268 80 3,348 (422) 2,926 3,059 (157) 2,902 APMEA 2,263 (38) 2,225 (833) 1,392 2,204 (438) 1,766 Profit from operations 11,626 782 12,408 (1,885) 10,523 11,150 (916) 10,234 Net finance costs (1,641) (1,486) Share of post-tax results of associates and joint ventures 442 415 Profit before taxation 9,324 9,163 Taxation on ordinary activities (2,478) (2,189) Profit for the year 6,846 6,974 Note: * The adjustments to profit from operations are explained in notes 3, 4, 6(d), 6(f), 6(g), 6(h), 6(i), 6(j), and 7. The following table shows 2021 profit from operations and adjusted profit from operations at current rates, and 2021 adjusted profit from operations translated using 2020 rates of exchange. The 2020 figures are stated at the 2020 rates of exchange. 2021 2020 Adjusted* segment result Constant rates Translation exchange Adjusted* segment result Current rates Adjusting* items Segment result Current rates Adjusted* segment result Adjusting* items Segment result U.S. 6,343 (456) 5,887 (321) 5,566 5,784 (809) 4,975 AME 3,210 (151) 3,059 (157) 2,902 3,259 (183) 3,076 APMEA 2,399 (195) 2,204 (438) 1,766 2,322 (411) 1,911 Profit from operations 11,952 (802) 11,150 (916) 10,234 11,365 (1,403) 9,962 Net finance costs (1,486) (1,745) Share of post-tax results of associates and joint ventures 415 455 Profit before taxation 9,163 8,672 Taxation on ordinary activities (2,189) (2,108) Profit for the year 6,974 6,564 Note: * The adjustments to profit from operations are explained in notes 3, 4, 6(d), 6(f), 6(g), 6(h), 6(i), 6(j), and 7. |
Summary of Depreciation Amortisation and Impairment Charges | Adjusted profit from operations at constant rates of £11,626 million (2021: £11,952 million; 2020: £11,661 million) excludes adjusting depreciation, amortisation and impairment charges as explained in notes 4 and 7. These are excluded from segmental adjusted profit from operations at constant rates as follows: 2022 2021 Adjusted depreciation, amortisation and impairment Constant rates Translation exchange Adjusted depreciation, amortisation and impairment Current rates Adjusting items Depreciation, amortisation and impairment Current rates Adjusted depreciation, amortisation and impairment Adjusting items Depreciation, amortisation and impairment U.S. 221 16 237 322 559 203 276 479 AME 363 11 374 116 490 333 56 389 APMEA 186 3 189 67 256 188 20 208 770 30 800 505 1,305 724 352 1,076 2021 2020 Adjusted depreciation, amortisation and impairment Constant rates Translation exchange Adjusted depreciation, amortisation and impairment Current rates Adjusting items Depreciation, amortisation and impairment Current rates Adjusted depreciation, amortisation and impairment Adjusting items Depreciation, amortisation and impairment U.S. 210 (7) 203 276 479 204 272 476 AME 351 (18) 333 56 389 336 126 462 APMEA 200 (12) 188 20 208 211 301 512 761 (37) 724 352 1,076 751 699 1,450 |
Disclosure of Additional Information by Product Category | Additional information by product category Although the Group’s operations are managed on a Regional basis, additional information for revenue is provided based on product category as follows: Revenue 2022 £m 2021 £m 2020 £m New Categories 2,894 2,054 1,443 Vapour 1,436 927 611 THP 1,060 853 634 Modern Oral 398 274 198 Traditional Oral 1,209 1,118 1,160 Combustibles 23,030 22,029 22,752 Other 522 483 421 Revenue 27,655 25,684 25,776 |
Disclosure of Geographical Information of External Revenue | 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 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m External revenue 228 209 188 27,427 25,475 25,588 27,655 25,684 25,776 |
Disclosure of Geographical Information of Non-Current Assets | United Kingdom All foreign countries Group 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Intangible assets 529 481 128,546 115,144 129,075 115,625 Property, plant and equipment 215 339 4,652 4,614 4,867 4,953 Investments in associates and joint ventures — 8 2,020 1,940 2,020 1,948 |
Employee benefit costs (Tables)
Employee benefit costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of defined benefit plans [abstract] | |
Summary of Employee Benefit Costs | Note 2022 £m 2021 £m 2020 £m Wages and salaries 2,553 2,315 2,277 Social security costs 201 185 194 Other pension and retirement benefit costs 15 133 139 182 Share-based payments - equity and cash-settled 28 85 78 91 2,972 2,717 2,744 |
Depreciation, amortisation an_2
Depreciation, amortisation and impairment costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Depreciation Amortisation And Impairment Costs [Abstract] | |
Summary of Depreciation Amortisation and Impairment Costs | 2022 £m 2021 £m 2020 £m Intangibles – amortisation and impairment of trademarks and similar intangibles 317 333 360 – amortisation and impairment of computer software 142 129 129 – impairment of goodwill — 57 209 Property, plant and equipment - depreciation and impairment 846 557 752 1,305 1,076 1,450 |
Other operating expenses (Table
Other operating expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
Summary of Other Operating Expenses | The following items are included within other operating expenses: Notes 2022 £m 2021 £m 2020 £m Other operating expenses 9,018 7,468 7,667 The following items are included within other operating expenses: Master settlement agreement 6(b),(d) 2,387 2,486 2,783 Marketing costs in operating expenses 6(c) 1,160 1,242 1,096 Inventory write-offs 20 250 215 309 Research and development expenses (excluding employee benefit costs and depreciation) 6(e) 138 141 121 Loss on disposal of businesses 6(f) (6) 358 — Excise, VAT and penalties in respect of disputes in Turkey, South Korea and Russia 6(g) — 26 (40) Charges in respect of DOJ investigation 6(h) 450 — — Charges in respect of assets held-for-sale 6(j) 612 — — Charges in respect of Nigerian FCCPC case 6(i) 79 — — Social contribution expense related to Brazil VAT case 12 — — Exchange differences 92 19 (29) Hedge ineffectiveness within operating profit 36 (5) (3) Expenses relating to short-term leases 11 8 10 Expenses relating to leases of low-value assets 1 1 1 Gains arising from sale and leaseback transactions — — (1) Auditor’s remuneration 6(k) 29 27 28 |
Summary of Auditor"s Remuneration | (k) Auditor’s remuneration 2022 £m 2021 £m 2020 £m Auditor’s remuneration Total expense for audit services pursuant to legislation: – fees to KPMG LLP for Parent Company and Group audit 9.4 8.7 8.7 – fees to KPMG LLP firms and associates for local statutory and Group 11.0 9.5 9.9 Total audit fees expense - KPMG LLP firms and associates 20.4 18.2 18.6 Audit fees expense to other firms 0.2 0.2 0.2 Total audit fees expense 20.6 18.4 18.8 Fees to KPMG LLP firms and associates for other services: – audit-related assurance services 7.1 8.0 8.5 – other assurance services 0.9 0.3 0.5 – tax advisory services — — — – tax compliance — — — – audit of defined benefit schemes of the Company 0.2 0.4 0.5 – other non-audit services — — — 8.2 8.7 9.5 |
Restructuring and Integration_2
Restructuring and Integration Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature [abstract] | |
Summary of Cost of Initiatives in Profit from Operations | The costs of the Group’s initiatives are included in profit from operations under the following headings: Notes 2022 £m 2021 £m 2020 £m Employee benefit costs 3 315 160 91 Depreciation, amortisation and impairment costs 4 220 (11) 151 Other operating income 5 (1) — — Other operating expenses 237 1 166 771 150 408 |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Finance Costs [Abstract] | |
Summary of Net Finance Costs/(Income) | (a) Net finance costs/(income) 2022 £m 2021 £m 2020 £m Interest expense 1,602 1,436 1,605 Interest expense on lease liabilities 25 24 26 Facility fees 21 33 23 Interest and fair value related to early repurchase of bonds (note 8(b)) — — 142 Interest related to adjusting tax payables (note 8(b)) 36 31 11 Fair value changes on derivative financial instruments and hedged items (473) 252 (217) Fair value change on other financial items (note 8(b)) (2) 24 — Exchange differences 524 (279) 205 Finance costs 1,733 1,521 1,795 Interest under the effective interest method (92) (35) (50) Finance income (92) (35) (50) Net finance costs 1,641 1,486 1,745 |
Associates and joint ventures (
Associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Associates And Joint Ventures [Abstract] | |
Schedule of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method | 2022 2021 2020 Total Group’s Total Group's share Total Group's share Revenue 9,486 2,675 7,668 2,164 7,001 1,983 Profit from operations 1,971 622 1,911 567 2,006 591 Net finance costs 21 4 13 2 (6) (2) Profit on ordinary activities 1,992 626 1,924 569 2,000 589 Taxation on ordinary activities (595) (176) (499) (147) (421) (125) Profit on ordinary activities after taxation 1,397 450 1,425 422 1,579 464 Non-controlling interests (27) (8) (22) (7) (30) (9) Post-tax results of associates and joint ventures 1,370 442 1,403 415 1,549 455 |
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. 2022 2021 2020 Group’s Group’s Group’s Profit on ordinary activities after taxation – attributable to owners of the parent 442 415 455 Other comprehensive income: Items that may be reclassified to profit and loss 6 (17) (98) Items that will not be reclassified to profit and loss 19 14 (34) Total comprehensive income 467 412 323 |
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. 2022 ITC Others Total Revenue 7,126 2,360 9,486 Profit on ordinary activities before taxation 2,395 (403) 1,992 Post-tax results of associates and joint ventures 1,761 (391) 1,370 Other comprehensive income 56 32 88 Total comprehensive income 1,817 (359) 1,458 2021 ITC Others Total Revenue 5,312 2,356 7,668 Profit on ordinary activities before taxation 1,931 (7) 1,924 Post-tax results of associates and joint ventures 1,427 (24) 1,403 Other comprehensive income (11) — (11) Total comprehensive income 1,416 (24) 1,392 2020 ITC Others Total Revenue 4,892 2,109 7,001 Profit on ordinary activities before taxation 1,930 70 2,000 Post-tax results of associates and joint ventures 1,495 54 1,549 Other comprehensive income (450) — (450) Total comprehensive income 1,045 54 1,099 |
Taxation on ordinary activiti_2
Taxation on ordinary activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Summary of Taxation on Ordinary Activities | (a) Summary of taxation on ordinary activities 2022 £m 2021 £m 2020 £m UK corporation tax (3) (25) 38 Comprising: – current year tax expense 2 1 38 – adjustments in respect of prior periods (5) (26) — Overseas tax 2,721 2,401 2,387 Comprising: – current year tax expense 2,675 2,418 2,369 – adjustments in respect of prior periods 46 (17) 18 Total current tax 2,718 2,376 2,425 Deferred tax (240) (187) (317) Comprising: – deferred tax relating to origination and reversal of temporary differences (174) (29) (184) – deferred tax relating to changes in tax rates (66) (158) (133) 2,478 2,189 2,108 |
Summary of Factors Affecting Taxation Charge | The taxation charge differs from the standard rate of corporation tax in the UK of 19% for 2022, 2021 and 2020. The major causes of this difference are listed below; 2022 2021 2020 £m % £m % £m % Profit before tax 9,324 9,163 8,672 Less: share of post-tax results of associates and joint ventures (see note 9) (442) (415) (455) 8,882 8,748 8,217 Tax at 19% (2021: 19% and 2020: 19%) on the above 1,688 19.0 1,662 19.0 1,561 19.0 Factors affecting the tax rate: Tax at standard rates other than UK corporation tax rate 397 4.5 319 3.6 368 4.5 Other national tax charges 244 2.7 184 2.1 142 1.7 Permanent differences 83 0.9 87 1.0 20 0.3 Overseas withholding taxes 156 1.8 189 2.2 155 1.9 Double taxation relief on UK profits (26) (0.3) (23) (0.3) (22) (0.3) Unutilised/(utilised) tax losses 12 0.1 (10) (0.1) 5 0.1 Adjustments in respect of prior periods 41 0.5 (43) (0.5) 18 0.2 Deferred tax relating to changes in tax rates (66) (0.7) (158) (1.8) (133) (1.6) Additional net deferred tax (credits)/charges (51) (0.6) (18) (0.2) (6) (0.1) 2,478 27.9 2,189 25.0 2,108 25.7 |
Summary of Tax on Items Recognised Directly in Other Comprehensive Income | (f) Tax on items recognised directly in other comprehensive income 2022 £m 2021 £m 2020 £m Current tax (6) (4) (5) Deferred tax (106) (110) 23 (Charged)/credited to other comprehensive income (112) (114) 18 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Summary of Reconciliation of Earnings Used To Calculate Earnings Per Share | Earnings used in the basic, diluted and headline earnings per share calculation represent the profit attributable to the ordinary equity shareholders after deducting amounts representing the coupon on perpetual hybrid bonds on a pro-rata basis regardless of whether coupons have been deferred or paid in the period. Below is a reconciliation of the earnings used to calculate earnings per share: 2022 £m 2021 £m 2020 £m Earnings attributable to owners of the parent 6,666 6,801 6,400 Coupon on perpetual hybrid bonds (60) (15) — Tax on coupon on perpetual hybrid bonds 11 3 — Earnings 6,617 6,789 6,400 |
Summary of Reconciliation from Basic to Diluted Earnings Per Share | Below is a reconciliation from basic to diluted earnings per share: 2022 2021 2020 Earnings Weighted Earnings Earnings Weighted Earnings Earnings Weighted Earnings Basic earnings per share (ordinary shares of 25p each) 6,617 2,256 293.3 6,789 2,287 296.9 6,400 2,286 280.0 Share options — 11 (1.4) — 10 (1.3) — 9 (1.1) Diluted earnings per share 6,617 2,267 291.9 6,789 2,297 295.6 6,400 2,295 278.9 |
Summary of Adjusted Earnings Per Share | Adjusted earnings per share calculation Earnings have been affected by a number of adjusting items, which are described in notes 3 to 10. 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. Basic 2022 2021 2020 Notes Earnings Earnings Earnings Earnings Earnings Earnings Basic earnings per share 6,617 293.3 6,789 296.9 6,400 280.0 Effect of amortisation and impairment of goodwill, trademarks and similar intangibles 4 285 12.6 363 15.9 548 24.0 Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles 10(e) (67) (3.0) (71) (3.1) (77) (3.4) Effect of Brazil VAT case 5,6(a) (460) (20.4) — — — — Tax on Brazil VAT case 10(e) 72 3.2 — — — — Effect of disposal of subsidiaries 6(f) (6) (0.3) 358 15.7 — — Effect of excise and VAT disputes 6(g) — — 26 1.1 (40) (1.7) Tax on excise and VAT disputes 10(d) — — (3) (0.1) 14 0.6 Effect of charges in respect of DOJ and OFAC investigations 6(h) 450 19.9 — — — — Effect of charges in respect of Nigerian FCCPC case 6(i) 79 3.5 — — — — Effect of impairment on held-for-sale assets and associated costs 6(j) 612 27.2 — — — — Tax effect of impairment of assets held-for-sale and associated costs 10(e) (10) (0.4) — — — — Effect of restructuring and integration costs 7 771 34.2 150 6.5 408 17.8 Tax and non-controlling interests on restructuring and integration costs 10(d)(e) (116) (5.1) (39) (1.7) (64) (2.8) Other adjusting items 3,6(d) 154 6.8 19 0.8 487 21.2 Tax effect on other adjusting items 10(e) (37) (1.6) (5) (0.2) (104) (4.5) Effect of early repurchase of bonds 8(b) — — — — 142 6.2 Tax effect of early repurchase of bonds 10(e) — — — — (32) (1.4) Effect of interest on FII GLO settlement and other 8(b) 34 1.5 55 2.4 11 0.5 Tax effect of interest on FII GLO settlement and other 10(e) (6) (0.3) — — (4) (0.2) Effect of associates' adjusting items net of tax 9(a) 92 4.1 12 0.5 (13) (0.6) Deferred tax relating to changes in tax rates 10(d) (44) (2.0) (98) (4.3) (21) (0.9) Effect of retrospective guidance on WHT 10(d) — — — — (42) (1.8) Adjusted earnings per share (basic) 8,420 373.2 7,556 330.4 7,613 333.0 Diluted 2022 2021 2020 Notes Earnings Earnings Earnings Earnings Earnings Earnings Diluted earnings per share 6,617 291.9 6,789 295.6 6,400 278.9 Effect of amortisation and impairment of goodwill, trademarks and similar intangibles 4 285 12.6 363 15.8 548 23.9 Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles 10(e) (67) (3.0) (71) (3.1) (77) (3.4) Effect of Brazil VAT case 5,6(a) (460) (20.3) — — — — Tax on Brazil VAT case 10(e) 72 3.2 — — — — Effect of disposal of subsidiaries 6(f) (6) (0.3) 358 15.6 — — Effect of excise and VAT disputes 6(g) — — 26 1.1 (40) (1.7) Tax on excise and VAT disputes 10(d) — — (3) (0.1) 14 0.6 Effect of charges in respect of DOJ and OFAC investigations 6(h) 450 19.9 — — — — Effect of charges in respect of Nigerian FCCPC case 6(i) 79 3.5 — — — — Effect of impairment on held-for-sale assets and associated costs 6(j) 612 26.8 — — — — Tax effect of impairment of assets held-for-sale and associated costs 10(e) (10) (0.4) — — — — Effect of restructuring and integration costs 7 771 34.0 150 6.6 408 17.7 Tax and non-controlling interests on restructuring and integration costs 10(d)(e) (116) (5.1) (39) (1.7) (64) (2.8) Other adjusting items 3,6(d) 154 6.8 19 0.8 487 21.2 Tax effect on other adjusting items 10(e) (37) (1.6) (5) (0.2) (104) (4.5) Effect of early repurchase of bonds 8(b) — — — — 142 6.2 Tax effect of early repurchase of bonds 10(e) — — — — (32) (1.4) Effect of interest on FII GLO settlement and other 8(b) 34 1.5 55 2.4 11 0.5 Tax effect of interest on FII GLO settlement and other 10(e) (6) (0.3) — — (4) (0.2) Effect of associates' adjusting items net of tax 9(a) 92 4.1 12 0.5 (13) (0.6) Deferred tax relating to changes in tax rates 10(d) (44) (1.9) (98) (4.3) (21) (0.9) Effect of retrospective guidance on WHT 10(d) — — — — (42) (1.8) Adjusted earnings per share (diluted) 8,420 371.4 7,556 329.0 7,613 331.7 |
Summary of Headline Earnings Per Share | 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 1/2021 ‘Headline Earnings’, as issued by the South African Institute of Basic 2022 2021 2020 Earnings Earnings Earnings Earnings Earnings Earnings Basic earnings per share 6,617 293.3 6,789 296.9 6,400 280.0 Effect of impairment of intangibles, property, plant and equipment, associates and assets held-for-sale 429 19.0 138 6.0 465 20.3 Tax and non-controlling interests on intangibles, property, plant and equipment, associates and assets held-for-sale (77) (3.4) (42) (1.8) (74) (3.3) Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (21) (0.9) (10) (0.4) (26) (1.1) Tax and non-controlling interests on disposal of property, plant and equipment, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback 5 0.2 2 0.1 8 0.3 Effect of impairment of subsidiaries 548 24.2 83 3.6 — — Tax on impairment of subsidiaries (10) (0.4) — — — — Effect of foreign exchange reclassification from reserves to the income statement – Subsidiaries 6 0.3 291 12.7 — — – Associates (1) — (2) (0.1) — — Issue of shares and change in shareholding in associate 3 0.1 (6) (0.3) (17) (0.7) Headline earnings per share (basic) 7,499 332.4 7,243 316.7 6,756 295.5 Diluted 2022 2021 2020 Earnings Earnings Earnings Earnings Earnings Earnings Diluted earnings per share 6,617 291.9 6,789 295.6 6,400 278.9 Effect of impairment of intangibles, property, plant and equipment, associates and assets held-for-sale 429 18.9 138 6.0 465 20.3 Tax and non-controlling interests on intangibles, property, plant and equipment, associates and assets held-for-sale (77) (3.4) (42) (1.8) (74) (3.3) Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (21) (0.9) (10) (0.4) (26) (1.1) Tax and non-controlling interests on disposal of property, plant and equipment, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback 5 0.2 2 0.1 8 0.3 Effect of impairment of subsidiaries 548 24.1 83 3.6 — — Tax on impairment of subsidiaries (10) (0.4) — — — — Effect of foreign exchange reclassification from reserves to the income statement – Subsidiaries 6 0.3 291 12.6 — — – Associates (1) — (2) (0.1) — — Issue of shares and change in shareholding in associate 3 0.1 (6) (0.3) (17) (0.7) Headline earnings per share (diluted) 7,499 330.8 7,243 315.3 6,756 294.4 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of Movement in Intangible Assets | 2022 Goodwill Computer Trademarks Assets in Total 1 January Cost 43,194 1,266 74,227 156 118,843 Accumulated amortisation and impairment (858) (2,360) (3,218) Net book value at 1 January 43,194 408 71,867 156 115,625 Differences on exchange 4,762 5 9,033 2 13,802 Additions – internal development — — — 37 37 – separately acquired — — — 85 85 Reallocations — 96 29 (125) — Amortisation charge — (128) (309) — (437) Impairment — (3) (10) (11) (24) Disposals — — (7) — (7) Held for sale — (4) — (2) (6) 31 December Cost 47,956 1,379 83,454 153 132,942 Accumulated amortisation and impairment (1,005) (2,851) (11) (3,867) Net book value at 31 December 47,956 374 80,603 142 129,075 2021 Goodwill Computer Trademarks Assets in Total 1 January Cost 43,319 1,307 73,598 120 118,344 Accumulated amortisation and impairment (885) (2,116) (3,001) Net book value at 1 January 43,319 422 71,482 120 115,343 Differences on exchange (68) (3) 640 — 569 Additions – internal development — — — 139 139 – separately acquired — — 60 33 93 Reallocations — 118 18 (136) — Amortisation charge — (116) (319) — (435) Impairment (57) (13) (14) — (84) 31 December Cost 43,194 1,266 74,227 156 118,843 Accumulated amortisation and impairment (858) (2,360) (3,218) Net book value at 31 December 43,194 408 71,867 156 115,625 |
Schedule of impairment of intangible assets with indefinite useful life | As the trademarks and similar intangibles with indefinite lives relate to the acquisition of Reynolds American, the brand budgets used in the value-in-use calculations have also been incorporated into the budget information used in the impairment testing of Reynolds American goodwill. 2022 2021 Carrying Pre-tax Carrying Pre-tax Indefinite-lived intangibles Newport 33,236 9.2 29,517 9.9 Camel 14,058 8.9 12,485 9.4 Pall Mall 6,252 8.6 5,552 8.8 Natural American Spirit 13,019 8.6 11,562 8.7 Camel Snus 1,355 8.6 1,203 8.7 Grizzly 10,308 8.6 9,155 8.7 Total 78,228 69,474 Note: |
Schedule of Cash Generating Unit | 2022 2021 Carrying Pre-tax Carrying Pre-tax Cash-generating unit Reynolds American 37,181 8.8 33,021 8.4 Europe 5,670 7.5 5,362 6.1 Canada 2,460 19.4 2,345 19.3 Australia 755 8.2 719 6.8 South Africa* 541 10.4 512 14.6 Singapore 398 7.9 352 8.2 GTR 264 7.6 233 7.7 Malaysia 240 11.4 226 11.2 Peru* 103 7.5 91 10.7 Other 344 8.0 333 6.8 Total 47,956 43,194 Note: |
Schedule of Impairment Charge From Possible Change in Assumptions | Reynolds American goodwill Newport Camel Pall Mall Grizzly Camel Snus Assumptions Decrease in revenue by* 6.1 21.0 28.6 14.1 8.9 5.1 Increase in pre-tax discount rate by 0.8 3.4 5.5 2.2 0.8 0.4 Decrease in long-term growth rate by 0.8 4.0 7.0 2.4 1.0 0.5 Note: * Revenue sensitivities are performed in isolation and do not include the removal of the corresponding variable cost of sales. Current headroom (£m) Assumptions Reasonable possible change Impact Possible impairment 11,826 Pre-tax discount rate Increase of 0.93% (13,355) (1,529) Long-term growth rates Decrease of 0.85% (13,036) (1,210) Reasonably possible changes to key assumptions, within the value-in-use model, which could result in an impairment charge were also identified for Camel Snus. The following movements in key assumptions are deemed to be reasonably possible and would result in the following: Current headroom (£m) Assumptions Reasonable possible change Impact Possible impairment 95 Pre-tax discount rate Increase of 0.94% (165) (70) Long-term growth rates Decrease of 1.00% (175) (80) Canada Assumptions Decrease in revenue by 20.6 Increase in pre-tax discount rate by 10.2 Note: * Revenue sensitivities are performed in isolation and do not include the removal of the corresponding variable cost of sales. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | (a) Overview of property, plant and equipment, including right-of-use assets 2022 Freehold Leasehold Plant, Plant, Assets in the Total 1 January Cost 1,421 847 5,750 247 706 8,971 Accumulated depreciation and impairment (388) (370) (3,130) (130) (4,018) Net book value at 1 January 1,033 477 2,620 117 706 4,953 Differences on exchange 68 30 164 9 48 319 Additions – right-of-use assets — 117 — 117 — 234 – separately acquired — — 32 — 471 503 Reallocations 44 21 374 2 (441) — Depreciation (36) (112) (323) (68) — (539) Impairment (62) (39) (210) (4) (4) (319) Right-of-use assets - reassessments, modifications and terminations — (16) — 4 — (12) Disposals (4) (2) (15) — 3 (18) Net reclassifications as held-for-sale (41) (10) (187) — (16) (254) 31 December Cost 1,475 940 5,962 362 767 9,506 Accumulated depreciation and impairment (473) (474) (3,507) (185) (4,639) Net book value at 31 December 1,002 466 2,455 177 767 4,867 2021 Freehold Leasehold Plant, Plant, Assets in the Total 1 January Cost 1,518 798 5,807 217 764 9,104 Accumulated depreciation and impairment (444) (315) (3,175) (110) (4,044) Net book value at 1 January 1,074 483 2,632 107 764 5,060 Differences on exchange (23) (22) (135) (5) (18) (203) Additions – right-of-use assets — 88 — 76 — 164 – separately acquired — 1 45 — 508 554 Reallocations 44 51 441 1 (537) — Depreciation (35) (110) (303) (57) — (505) Impairment (4) (2) (37) — (11) (54) Right-of-use assets - reassessments, modifications and terminations — (11) — (5) — (16) Disposals (7) (1) (12) — — (20) Net reclassifications as held-for-sale (16) — (11) — — (27) 31 December Cost 1,421 847 5,750 247 706 8,971 Accumulated depreciation and impairment (388) (370) (3,130) (130) (4,018) Net book value at 31 December 1,033 477 2,620 117 706 4,953 |
Schedule of Leasehold Land and Property Comprises | 2022 £m 2021 £m Leasehold land and property comprises - net book value of long leasehold 15 14 - net book value of short leasehold 451 463 466 477 |
Schedule of Leasehold Property Net Book Value Movements | 2022 Leasehold property net book value movements for the year ended 31 December 2022 Net book value at 1 January Differences on exchange Depreciation and impairment Other net movements * £m Net book value at 31 December - Property acquired (IAS 16) 165 11 (41) 17 152 - Right-of-use properties (IFRS 16) 312 19 (110) 93 314 477 30 (151) 110 466 2021 Leasehold property net book value movements for the year ended 31 December 2021 Net book value at 1 January Differences on exchange Depreciation and impairment Other net movements* Net book value at 31 December - Property acquired (IAS 16) 132 (8) (13) 54 165 - Right-of-use properties (IFRS 16) 351 (14) (99) 74 312 483 (22) (112) 128 477 Note: * Property acquired (IAS 16 Property, plant and equipment |
Schedule of Cost of Freehold Land | 2022 £m 2021 £m Cost of freehold land within freehold property on which no depreciation is provided 246 242 |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments in subsidiaries, joint ventures and associates reported in separate financial statements [abstract] | |
Summary of Investments In Associates And Joint Ventures | 2022 £m 2021 £m 1 January 1,948 1,796 Total comprehensive income (note 9) 467 412 Dividends (438) (392) Additions (note 27(c)) 39 130 Other equity movements 4 2 31 December 2,020 1,948 Non-current assets 1,400 1,286 Current assets 1,138 1,144 Non-current liabilities (75) (83) Current liabilities (443) (399) 2,020 1,948 ITC Ltd. (Group’s share of the market value is £12,059 million (2021 £7,839 million)) 1,865 1,759 Other listed associates (Group’s share of the market value is £206 million (2021: £232 million)) 106 154 Unlisted associates 49 35 2,020 1,948 |
Summary of Latest Published Information | 2022 £m 2021 £m Non-current assets 4,402 3,889 Current assets 3,465 3,391 Non-current liabilities (233) (231) Current liabilities (1,244) (1,061) 6,390 5,988 Group’s share of ITC Ltd. (2022: 29.19%; 2021: 29.38%) 1,865 1,759 |
Retirement Benefit Schemes (Tab
Retirement Benefit Schemes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Present value of funded scheme liabilities (6,310) (9,859) (205) (225) (6,515) (10,084) Fair value of funded scheme assets 7,271 10,644 153 172 7,424 10,816 961 785 (52) (53) 909 732 Unrecognised funded scheme surpluses (61) (16) — — (61) (16) 900 769 (52) (53) 848 716 Present value of unfunded scheme liabilities (387) (555) (410) (482) (797) (1,037) 513 214 (462) (535) 51 (321) The above net asset/(liability) is recognised in the balance sheet as follows: – retirement benefit scheme liabilities (483) (702) (466) (537) (949) (1,239) – retirement benefit scheme assets 996 916 4 2 1,000 918 513 214 (462) (535) 51 (321) The net assets/(liabilities) of funded pension schemes by territory are as follows: Liabilities Assets Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m – U.S. (1,552) (3,378) 2,046 3,748 494 370 – UK (2,114) (3,357) 2,256 3,645 142 288 – Germany (711) (913) 861 896 150 (17) – Canada (574) (706) 613 724 39 18 – Netherlands (693) (769) 739 846 46 77 – Switzerland (279) (317) 308 311 29 (6) – Rest of Group (387) (419) 448 474 61 55 Funded schemes (6,310) (9,859) 7,271 10,644 961 785 The movements in scheme liabilities are as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Present value at 1 January 10,414 12,572 707 798 11,121 13,370 Differences on exchange 567 (122) 78 5 645 (117) Current service cost 50 60 1 2 51 62 Past service (credit)/cost and settlements (1,308) (1,426) 1 — (1,307) (1,426) Interest on scheme liabilities 224 226 23 19 247 245 Contributions by scheme members 3 3 — — 3 3 Benefits paid (586) (705) (59) (55) (645) (760) Actuarial (gains)/losses – arising from changes in demographic assumptions (18) 147 — 3 (18) 150 – arising from changes in financial assumptions (2,775) (394) (145) (18) (2,920) (412) Experience losses/(gains) 126 53 9 (47) 135 6 Present value at 31 December 6,697 10,414 615 707 7,312 11,121 Scheme liabilities by scheme membership: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Active members 756 1,090 31 41 787 1,131 Deferred members 1,055 1,750 1 1 1,056 1,751 Retired members 4,886 7,574 583 665 5,469 8,239 Present value at 31 December 6,697 10,414 615 707 7,312 11,121 Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Fair value of scheme assets 10,644 12,403 172 173 10,816 12,576 Differences on exchange 606 (116) 21 — 627 (116) Settlements (1,294) (1,397) — — (1,294) (1,397) Interest on scheme assets 240 226 6 5 246 231 Company contributions 74 74 — — 74 74 Contributions by scheme members 3 3 — — 3 3 Benefits paid (546) (668) (15) (13) (561) (681) Actuarial (losses)/gains (2,456) 119 (31) 7 (2,487) 126 Fair value of scheme assets 7,271 10,644 153 172 7,424 10,816 Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Equities ‒ listed 623 741 5 6 628 747 Equities ‒ unlisted 756 892 50 65 806 957 Bonds ‒ listed 1,167 1,929 18 5 1,185 1,934 Bonds ‒ unlisted 768 1,924 64 72 832 1,996 Other assets ‒ listed 473 543 7 15 480 558 Other assets ‒ unlisted 3,484 4,615 9 9 3,493 4,624 Fair value of scheme assets 7,271 10,644 153 172 7,424 10,816 |
Schedule of Defined Benefit Amounts Recognised in Income Statement | The amounts recognised in the income statement are as follows: Pension schemes Healthcare schemes Total 2022 £m 2021 £m 2022 £m 2021 £m 2022 £m 2021 £m Defined benefit schemes Service cost – current service cost 50 60 1 2 51 62 – past service credit, curtailments and settlements (14) (29) 1 — (13) (29) Net interest on the net defined benefit liability – interest on scheme liabilities 224 226 23 19 247 245 – interest on scheme assets (240) (226) (6) (5) (246) (231) – interest on unrecognised funded scheme surpluses 1 1 — — 1 1 21 32 19 16 40 48 Defined contribution schemes 93 91 — — 93 91 Total amount recognised in the income statement (note 3) 114 123 19 16 133 139 |
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 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m 2022 £m 2021 £m 2020 £m Unrecognised funded scheme surpluses at (16) (16) (28) — — — (16) (16) (28) Differences (4) 2 3 — — — (4) 2 3 Interest on unrecognised funded scheme surpluses (1) (1) (1) — — — (1) (1) (1) Movement in year (note 22) (39) (1) 10 — — — (39) (1) 10 Unrecognised funded scheme surpluses at (60) (16) (16) — — — (60) (16) (16) |
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 territories 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. 2022 2021 U.S. UK Germany Canada Netherlands Switzerland U.S. UK Germany Canada Netherlands Switzerland Rate of increase in salaries (%) 3.3 Nil 2.5 2.5 1.4 1.5 3.4 — 2.5 2.5 1.4 1.2 Rate of increase in pensions in payment (%) 2.4 3.2 2.3 Nil 2.2 Nil 2.5 3.4 1.8 Nil 1.1 Nil Rate of increase in deferred pensions (%) 0.1 2.8 2.3 Nil 2.2 — 0.1 3.0 1.8 Nil 1.1 — Discount rate (%) 5.5 5.0 4.2 5.0 3.7 2.1 3.0 1.8 1.3 2.8 1.0 0.2 General inflation (%) 2.5 3.2 2.3 2.0 2.0 1.2 2.5 3.4 1.8 2.0 2.0 1.0 2022 2021 U.S. UK Germany Canada Netherlands Switzerland U.S. UK Germany Canada Netherlands Switzerland Weighted average duration of liabilities (years) 10.7 12.4 10.9 9.0 14.4 10.2 12.3 16.7 13.6 11.0 17.1 13.3 For healthcare inflation in the U.S., the assumption is 7.5% for 2022 (2021: 7.0%) and in Canada, the assumption is 5.0% for both years. Mortality assumptions are subject to regular review. The principal schemes used the following tables: U.S. PRI-2012 mortality tables without collar or amount, projected with MP-2021 generational projection except for a specific group of retired members for which the mortality assumption is 99.5% of the RP-2006 table with white collar adjustment, projected with MP-2021 generational projection (both years) UK S3PA (YOB) with the CMI (2021) improvement model with a 1.25% long-term improvement rate (2021: S3PA (YOB) with the CMI (2020) improvement model with a 1.25% long-term improvement rate) Germany RT Heubeck 2018 G (both years) Canada CPM-2014 Private Table (both years) Netherlands AG Prognosetafel 2022 (2021: AG Prognosetafel 2020) Switzerland LPP/BVG 2020 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate (2021: LPP/BVG 2020 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate) Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows: U.S. UK Germany Canada Netherlands Switzerland Male Female Male Female Male Female Male Female Male Female Male Female 31 December 2022 Member age 65 (current life expectancy) 22.1 23.6 22.9 24.2 20.6 24.0 22.0 24.4 21.0 24.4 22.0 23.7 Member age 45 (life expectancy at age 65) 22.2 24.1 24.5 26.0 23.4 26.3 23.0 25.3 23.2 26.3 23.9 25.6 31 December 2021 Member age 65 (current life expectancy) 21.6 23.5 22.9 24.2 20.5 23.9 22.0 24.3 20.7 24.1 21.9 23.6 Member age 45 (life expectancy at age 65) 22.1 24.0 24.5 25.9 23.2 26.2 23.0 25.3 22.8 25.8 23.8 25.5 For the remaining territories, typical assumptions are that real salary increases will be from 0% to 8.0% (2021: 0% to 8.0%) per annum and discount rates will be from 0% to 7.5% (2021: 0% to 11.0%) above inflation. Pension increases, where allowed for, are generally assumed to be in line with inflation. Assumptions of life expectancy are in line with best practice in each territory. For countries where there is not a deep market in such corporate bonds, the yield on government bonds is used. The 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 2022 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 and pension 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 1 year percentage increase percentage decrease Average life expectancy – increase/(decrease) of scheme liabilities 170 (171) Rate of inflation (+/- 25bps) – increase/(decrease) of scheme liabilities 95 (91) Discount rate (+/- 50bps) – (decrease)/increase of scheme liabilities (309) 328 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Summary of Reconciliation of Net Deferred Tax Assets/(Liabilities) | Net deferred tax (liabilities)/assets comprise: Stock Excess of Tax Undistributed earnings of associates and subsidiaries Retirement Trademarks Other Total 1 January 2022 (4) (151) 94 (221) 139 (16,779) 1,071 (15,851) Differences on exchange (8) (20) 5 (8) 7 (2,109) 126 (2,007) Credited/(charged) to the income statement 46 50 77 — (18) 70 (51) 174 Credited/(charged) relating to changes in tax rates — (3) 34 — (1) 45 (9) 66 Charged to other — — — — (89) — (17) (106) Net reclassifications as held-for-sale (4) 9 — — — — (27) (22) 31 December 2022 30 (115) 210 (229) 38 (18,773) 1,093 (17,746) 1 January 2021 (13) (189) 58 (231) 246 (16,784) 1,133 (15,780) Differences on exchange (3) 5 (3) 2 (4) (149) 4 (148) Credited/(charged) to the income statement 12 (16) 34 8 (22) 63 (50) 29 Credited/(charged) relating to changes in tax rates — 49 5 — (3) 91 16 158 Charged to other comprehensive income — — — — (78) — (32) (110) 31 December 2021 (4) (151) 94 (221) 139 (16,779) 1,071 (15,851) |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Summary of trade and other receivables | 2022 £m 2021 £m Trade receivables 2,609 2,998 Loans and other receivables 1,568 755 Prepayments and accrued income 431 408 4,608 4,161 Current 4,367 3,951 Non-current 241 210 4,608 4,161 |
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: 2022 £m 2021 £m Trade receivables – gross 2,660 3,035 Trade receivables – allowance (51) (37) Loans and other receivables – gross 1,568 755 Loans and other receivables – allowance — — Prepayments and accrued income 431 408 Net trade and other receivables per balance sheet 4,608 4,161 |
Summary of movements in allowance account | The movements in the allowance account are as follows: 2022 2021 Trade receivables Loans Total Trade receivables Loans Total 1 January 37 — 37 41 — 41 Differences on exchange 2 — 2 (2) — (2) Provided in the year 28 — 28 7 — 7 Released (16) — (16) (9) — (9) 31 December 51 — 51 37 — 37 |
Investments held at fair value
Investments held at fair value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Investments Held At Fair Value [Abstract] | |
Investments Held at Fair Value | 2022 2021 Fair value through P&L Fair value through OCI Total Fair value through P&L Fair value through OCI Total 1 January 469 37 506 255 9 264 Difference on exchange 18 1 19 3 1 4 Additions 209 19 228 327 18 345 Disposals (93) (3) (96) (98) — (98) Provisions 17 — 17 (24) — (24) Other fair value movements 20 6 26 6 9 15 31 December 640 60 700 469 37 506 Current 579 — 579 456 — 456 Non-current 61 60 121 13 37 50 640 60 700 469 37 506 |
Schedule of Reconciliation of Fair Value Investments Cash Flows to Cash Flow Statements | Below is a reconciliation of the fair value investments cash flows to the cash flow statement – investing activities: 2022 £m 2021 £m Cash outflow from investments held at fair value 228 345 Cash outflow from loans and other receivables 29 24 Cash outflows from investments per cash flow statement 257 369 Cash inflow from investments held at fair value (96) (98) Cash inflow from loans and other receivables (32) (43) Cash inflows from investments per cash flow statement (128) (141) |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Derivative Financial Instruments [Abstract] | |
Summary of derivatives | 2022 2021 Assets Liabilities Assets Liabilities Fair value hedges – interest rate swaps 27 435 5 2 – cross-currency swaps 126 — 114 — Cash flow hedges – interest rate swaps 5 — — — – cross-currency swaps 127 121 107 35 – forward foreign currency contracts 70 71 81 35 Net investment hedges – forward foreign currency contracts 45 247 62 81 Held-for-trading* – interest rate swaps 12 14 28 34 – forward foreign currency contracts 149 41 28 127 Total 561 929 425 314 Current 430 427 182 235 Non-current 131 502 243 79 561 929 425 314 Derivatives – in respect of net debt** 438 605 273 182 – other 123 324 152 132 561 929 425 314 Notes: * Derivatives which do not meet the tests for hedge accounting under IFRS 9 or which are not designated as hedging instruments are referred to as ‘held-for-trading’. These derivatives principally consist of interest rate swaps and 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 does not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes. ** Derivatives in respect of net debt are in a net liability position of £167 million as at 31 December 2022 (2021: net asset position of £91 million). The Group’s net debt is presented in note 23. |
Summary of maturity dates of derivative financial instruments | The maturity dates of all gross-settled derivative financial instruments are as follows: 2022 2021 Assets Liabilities Assets Liabilities Inflow Outflow Inflow Outflow Inflow Outflow Inflow Outflow Within one year – forward foreign currency contracts 12,506 (12,249) 8,691 (9,049) 5,743 (4,727) 12,407 (12,096) – cross-currency swaps 731 (608) 689 (767) 14 (22) 17 (36) Between one and two years – forward foreign currency contracts 199 (193) 243 (247) 807 (779) 143 (113) – cross-currency swaps 9 (15) 10 (17) 705 (592) 665 (689) Between two and three years – cross-currency swaps 9 (15) 460 (502) 9 (15) 10 (15) Between three and four years – cross-currency swaps 9 (15) — — 9 (15) 460 (445) Between four and five years – cross-currency swaps 756 (579) — — 9 (15) — — Beyond five years – cross-currency swaps — — — — 726 (579) — — 14,219 (13,674) 10,093 (10,582) 8,022 (6,744) 13,702 (13,394) The maturity dates of net-settled derivative financial instruments, which primarily relate to interest rate swaps, are as follows: 2022 2021 Assets Liabilities Assets Liabilities Within one year 263 531 127 225 Between one and two years 30 134 25 19 Between two and three years — 84 23 11 Between three and four years — 66 (2) 11 Between four and five years — 7 — 12 Beyond five years 23 460 — (17) 316 1,282 173 261 |
Summary of items designated as hedging instruments | The items designated as hedging instruments are as follows: 2022 2021 Nominal Changes in Nominal Changes in Interest rate risk exposure: Fair value hedges – interest rate swaps 4,657 (417) 4,413 (35) – cross-currency swaps 710 11 672 (52) Cash flow hedges – interest rate swaps 1,247 (5) — — – cross-currency swaps 1,825 60 1,751 69 Foreign currency risk exposure: Cash flow hedges – forward foreign currency contracts 3,695 (2) 3,573 49 Net investment hedges (derivative related) – forward foreign currency contracts 6,407 (208) 6,120 (27) Net investment hedges (non-derivative related) – debt (carrying value) in borrowings designated as net investment hedges of net assets 389 21 368 (24) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Summary of Inventories | 2022 £m 2021 £m Raw materials and consumables 2,370 2,100 Finished goods and work in progress 3,159 3,046 Goods purchased for resale 142 133 5,671 5,279 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Schedule Representing Cash and Cash Equivalents | 2022 £m 2021 £m Cash and bank balances 3,116 2,529 Cash equivalents 330 280 3,446 2,809 |
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: 2022 £m 2021 £m Functional currency 2,979 2,422 U.S. dollar 207 170 Euro 129 92 Other currencies 131 125 3,446 2,809 |
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: 2022 £m 2021 £m Cash and cash equivalents as above 3,446 2,809 Less overdrafts and accrued interest (109) (346) Net cash and cash equivalents 3,337 2,463 |
Capital and reserves (Tables)
Capital and reserves (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Abstract] | |
Summary of Capital and Reserves - Reconciliation of Movement in Total Equity | (a) Share capital Ordinary shares of 25p each Number of shares £m Allotted and fully paid 1 January 2022 2,456,617,788 614.15 Changes during the year – share option schemes 249,632 0.06 31 December 2022 2,456,867,420 614.21 Allotted and fully paid 1 January 2021 2,456,591,597 614.14 Changes during the year – share option schemes 26,191 0.01 31 December 2021 2,456,617,788 614.15 Allotted and fully paid 1 January 2020 2,456,520,738 614.12 Changes during the year – share option schemes 70,859 0.02 31 December 2020 2,456,591,597 614.14 |
Summary of Composition of Share Premium Account, Capital Redemption Reserves and Merger Reserves | (b) Share premium account, capital redemption reserves and merger reserves comprise: Share Capital Merger Total 31 December 2022 113 101 26,414 26,628 31 December 2021 107 101 26,414 26,622 31 December 2020 103 101 26,414 26,618 |
Summary of Movements in Other Reserves and Retained Earnings | (c) Equity attributed to owners of the parent - movements in other reserves and retained earnings (which are after deducting treasury shares) comprise: Retained earnings Translation Hedging Fair value reserve Revaluation Other Total other Treasury Other 1 January 2022 (6,427) (363) 6 179 573 (6,032) (5,122) 49,334 Comprehensive income and expense Profit for the year — — — — — — — 6,666 Foreign currency translation and hedges of net investments in foreign operations – differences on exchange from translation of foreign operations 8,920 — — — — 8,920 — — – reclassified and reported in profit for the year 5 — — — — 5 — — – net investment hedges - net fair value gains on derivatives (578) — — — — (578) — — – net investment hedges - differences on exchange on borrowings (21) — — — — (21) — — Cash flow hedges – net fair value gains — 81 — — — 81 — — – reclassified and reported in profit for the year — 101 — — — 101 — — – tax on net fair value gains in respect of cash flow hedges (note 10(f)) — (17) — — — (17) — — Investments held at fair value – net fair value gains — — 6 — — 6 — — Associates - share of OCI, net of tax (note 9) 6 — — — — 6 — — Retirement benefit schemes – net actuarial gains (note 15) — — — — — — — 316 – surplus recognition (note 15) — — — — — — — (39) – tax on actuarial gains in respect of subsidiaries (note 10(f)) — — — — — — — (95) Associates - share of OCI, net of tax (note 9) — — 18 — — 18 — 1 Other changes in equity Cash flow hedges reclassified and reported in total assets — (129) — — — (129) — — Employee share options – value of employee services — — — — — — — 81 – treasury shares used for share option schemes — — — — — — 14 (15) Dividends and other appropriations – ordinary shares — — — — — — — (4,915) Purchase of own shares – held in employee share ownership trusts — — — — — — (80) — – share buy-back programme — — — — — — (2,012) — Perpetual hybrid bonds – coupons paid — — — — — — — (59) – tax on coupons paid — — — — — — — 11 Non-controlling interests - acquisitions (note 27(b)) — — — — — — — (1) Reclassification of equity related to assets held-for-sale 295 — — — — 295 — — Other movements — — — — — — 84 (88) 31 December 2022 2,200 (327) 30 179 573 2,655 (7,116) 51,197 Retained earnings Translation Hedging Fair value reserve Revaluation Other Total other Treasury Other 1 January 2021 (6,830) (504) (18) 179 573 (6,600) (5,150) 47,191 Comprehensive income and expense Profit for the year — — — — — — — 6,801 Foreign currency translation and hedges of net investments in foreign operations – differences on exchange from translation of foreign operations 31 — — — — 31 — — – reclassified and reported in profit for the year 291 — — — — 291 — — – net investment hedges – net fair value gains on derivatives 75 — — — — 75 — — – net investment hedges – differences on exchange on borrowings 24 — — — — 24 — — Cash flow hedges – net fair value gains — 95 — — — 95 — — – reclassified and reported in profit for the year — 32 — — — 32 — — – tax on net fair value gains in respect of cash flow hedges (note 10(f)) — (32) — — — (32) — — Investments held at fair value – net fair value gains — — 9 — — 9 — — Associates – share of OCI, net of tax (note 9) (18) 1 — — — (17) — — Retirement benefit schemes – net actuarial gains (note 15) — — — — — — — 382 – surplus recognition (note 15) — — — — — — — (1) – tax on actuarial gains in respect of subsidiaries (note 10(f)) — — — — — — — (82) Associates - share of OCI, net of tax (note 9) — — 15 — — 15 — (1) Other changes in equity Cash flow hedges reclassified and reported in total assets — 45 — — — 45 — — Employee share options – value of employee services — — — — — — — 76 – treasury shares used for share option schemes — — — — — — 13 (17) Dividends and other appropriations – ordinary shares — — — — — — — (4,904) Purchase of own shares – held in employee share ownership trusts — — — — — — (82) — Perpetual hybrid bonds – coupons paid — — — — — — — (6) – tax on coupons paid — — — — — — — 1 Non-controlling interests – acquisitions (note 27(b)) — — — — — — — (5) Other movements — — — — — — 97 (101) 31 December 2021 (6,427) (363) 6 179 573 (6,032) (5,122) 49,334 Retained earnings Translation Hedging Fair value reserve Revaluation Other Total other Treasury Other 1 January 2020 (3,974) (346) 13 179 573 (3,555) (5,261) 45,495 Comprehensive income and expense Profit for the year — — — — — — — 6,400 Foreign currency translation and hedges of net investments in foreign operations – differences on exchange from translation of foreign operations (2,582) — — — — (2,582) — — – net investment hedges – net fair value losses on derivatives (16) — — — — (16) — — – net investment hedges – differences on exchange on borrowings (163) — — — — (163) — — Cash flow hedges – net fair value losses — (256) — — — (256) — — – reclassified and reported in profit for the year — 90 — — — 90 — — – tax on net fair value losses in respect of cash flow hedges (note 10(f)) — 44 — — — 44 — — Associates – share of OCI, net of tax (note 9) (95) (3) — — — (98) — — Retirement benefit schemes – net actuarial gains (note 15) — — — — — — — 105 – surplus recognition (note 15) — — — — — — — 10 – tax on actuarial gains in respect of subsidiaries (note 10(f)) — — — — — — — (26) Associates - share of OCI, net of tax (note 9) — — (31) — — (31) — (3) Other changes in equity Cash flow hedges reclassified and reported in total assets — (33) — — — (33) — — Employee share options – value of employee services — — — — — — — 88 – treasury shares used for share option schemes — — — — — — 9 (16) Dividends and other appropriations – ordinary shares — — — — — — — (4,747) Purchase of own shares – held in employee share ownership trusts — — — — — — (17) — Other movements — — — — — — 119 (115) 31 December 2020 (6,830) (504) (18) 179 573 (6,600) (5,150) 47,191 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of Detailed Information About Borrowings | Currency Maturity dates Interest rates 2022 £m 2021 £m Eurobonds Euro 2023 to 2045 0.9% to 3.1% 7,149 7,316 UK sterling 2024 to 2055 2.1% to 7.3% 3,884 4,086 Swiss franc 2026 1.4% 226 203 Bonds issued pursuant to Rules under the U.S. Securities Act (as amended) U.S. dollar 2023 to 2052 1.7% to 8.1% 30,152 25,625 U.S. dollar* 2022 USD3m LIBOR + 0.88 bps — 554 Bonds and notes 41,411 37,784 Commercial paper 27 269 Other loans 875 500 Bank loans 203 313 Bank overdrafts 106 346 Lease liabilities 517 446 43,139 39,658 Note: * As at 31 December 2022, there were no outstanding floating rate U.S. dollar bonds (2021: £554 million, 3M LIBOR +88bps) |
Schedule of Detailed Information About Repayment of Borrowings | Borrowings are repayable as follows: Per balance sheet Contractual gross maturities 2022 £m 2021 £m 2022 £m 2021 £m Within one year 4,413 3,992 5,426 4,860 Between one and two years 4,253 2,484 5,763 3,740 Between two and three years 4,406 3,853 5,673 5,092 Between three and four years 3,013 4,090 4,141 5,034 Between four and five years 4,077 2,739 5,494 3,675 Beyond five years 22,977 22,500 33,806 32,203 43,139 39,658 60,303 54,604 |
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 U.S. UK Euro Other Total 31 December 2022 Total borrowings 33,438 3,383 452 5,579 287 43,139 Effect of derivative financial instruments – cross-currency swaps 2,356 — (450) (2,085) — (179) – forward foreign currency contracts (40) (998) — 590 454 6 35,754 2,385 2 4,084 741 42,966 31 December 2021 Total borrowings 30,363 2,837 453 5,775 230 39,658 Effect of derivative financial instruments – cross-currency swaps 2,219 — (450) (1,973) — (204) – forward foreign currency contracts (24) (464) — 58 432 2 32,558 2,373 3 3,860 662 39,456 |
Schedule of Analysis of Borrowings by Interest Rate Changes | The exposure to interest rate changes when borrowings are re-priced is as follows: Within Between Between Between Between Beyond Total 31 December 2022 Total borrowings 4,398 4,246 4,407 3,013 4,077 22,998 43,139 Effect of derivative financial instruments – interest rate swaps 4,657 (500) (1,247) — (2,910) — — – cross-currency swaps (77) — 36 — (138) — (179) 8,978 3,746 3,196 3,013 1,029 22,998 42,960 31 December 2021 Total borrowings 3,999 2,477 3,853 4,090 2,739 22,500 39,658 Effect of derivative financial instruments – interest rate swaps 4,192 — (500) (1,107) — (2,585) — – cross-currency swaps 566 (652) — (19) — (99) (204) 8,757 1,825 3,353 2,964 2,739 19,816 39,454 |
Disclosure of Detailed Information About Repayment of Lease Liabilities | Lease liabilities are repayable as follows: Per balance sheet Contractual gross maturities 2022 £m 2021 £m 2022 £m 2021 £m Within one year 142 126 161 142 Between one and two years 109 93 122 106 Between two and three years 76 66 85 76 Between three and four years 58 49 65 56 Between four and five years 50 38 54 43 Beyond five years 82 74 112 103 517 446 599 526 |
Schedule of Analysis of Net Debt Movements Along with Reconciliation to the Financing Activities in the Group Cash Flow Statement | The Group’s composition and movements in net debt are presented below along with a reconciliation to the financing activities in the Group Cash Flow Statement: 2022 £m Notes Opening balance Cash flow Foreign exchange Fair value, accrued interest and other Held for Sale Closing balance Borrowings (excluding lease liabilities)* 39,212 (17) 3,881 (454) — 42,622 Lease liabilities 446 (161) 30 218 (16) 517 Derivatives in respect of net debt 19 (91) 348 (435) 345 — 167 Cash and cash equivalents 21 (2,809) (571) (431) (3) 368 (3,446) Current investments held at fair value 18 (456) (86) (15) (22) — (579) 36,302 (487) 3,030 84 352 39,281 2021 £m Notes Opening Cash flow Foreign Fair value, Held for Sale Closing balance Borrowings (excluding lease liabilities)* 43,493 (3,768) (387) (126) — 39,212 Lease liabilities 475 (154) (22) 147 — 446 Derivatives in respect of net debt 19 (346) (22) 277 — — (91) Cash and cash equivalents 21 (3,139) 75 258 (3) — (2,809) Current investments held at fair value 18 (242) (205) (2) (7) — (456) 40,241 (4,074) 124 11 — 36,302 Note: * Borrowings as at 31 December 2022 include £798 million (2021: £754 million) in respect of the purchase price adjustments relating to the acquisition of Reynolds American. In the table above, movements in accrued interest relate to the net movement year on year and cash flows related to interest payments are not included. ' 2022 £m 2021 £m Cash flows per net debt statement (487) (4,074) Non-financing cash flows included in net debt 897 33 Interest paid (1,578) (1,479) Interest element of lease liabilities (25) (23) Remaining cash flows relating to derivative financial instruments (465) 251 Purchases of own shares held in employee share ownership trusts (80) (82) Purchase of own shares (2,012) — Proceeds from issue of perpetual hybrid bonds — 1,681 Coupon paid on perpetual hybrid bonds (60) (6) Dividends paid to owners of the parent (4,915) (4,904) Capital injection from and purchase of non-controlling interests (1) 1 Dividends paid to non-controlling interests (158) (150) Other 6 3 Net cash used in financing activities per cash flow statement (8,878) (8,749) |
Provisions for liabilities (Tab
Provisions for liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other provisions [abstract] | |
Summary of Provisions Excluding Post-Retirement Benefits | Restructuring Employee-related Fox River DOJ and OFAC investigations £m Other Total 1 January 2022 179 41 62 — 571 853 Differences on exchange 9 2 — — 15 26 Provided in respect of the year (*) 198 10 — 450 187 845 Transferred to liabilities associated with assets held for sale (20) — — — (6) (26) Utilised during the year (69) (9) (8) — (91) (177) 31 December 2022 297 44 54 450 676 1,521 Analysed on the balance sheet as – current 240 14 10 450 373 1,087 – non-current 57 30 44 — 303 434 297 44 54 450 676 1,521 Restructuring Employee-related Fox River Other Total 1 January 2021 241 38 70 636 985 Differences on exchange (13) (3) — (23) (39) Provided in respect of the year (*) 32 27 — 199 258 Utilised during the year (81) (21) (8) (241) (351) - in respect of MSA litigation (Texas, Minnesota, Mississippi) — — — (199) (199) - in respect of other (81) (21) (8) (42) (152) 31 December 2021 179 41 62 571 853 Analysed on the balance sheet as – current 123 14 8 316 461 – non-current 56 27 54 255 392 179 41 62 571 853 Note: * Amounts provided above are shown net of reversals of unused provisions which include reversals of £35 million (2021: £20 million) for restructuring of existing businesses, |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Summary of Trade and Other Payables | 2022 £m 2021 £m Trade payables 4,055 3,923 Duty, excise and other taxes 3,104 3,148 Accrued charges and deferred income 2,713 2,095 FII GLO (note 10(b)) 913 963 Social security and other taxation 61 55 Sundry payables 547 375 11,393 10,559 Current 10,449 9,577 Non-current 944 982 11,393 10,559 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | In accordance with IFRS 13 classification hierarchy, the following table presents the Group’s financial assets and liabilities that are measured at fair value: 2022 2021 Notes Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets at fair value Investment held at fair value 18 514 — 186 700 405 — 101 506 Derivatives relating to – interest rate swaps 19 — 43 — 43 — 33 — 33 – cross-currency swaps 19 — 254 — 254 — 221 — 221 – forward foreign currency contracts 19 — 264 — 264 — 171 — 171 Assets at fair value 514 561 186 1,261 405 425 101 931 Liabilities at fair value Derivatives relating to – interest rate swaps 19 — 450 — 450 — 36 — 36 – cross-currency swaps 19 — 121 — 121 — 35 — 35 – forward foreign currency contracts 19 — 358 — 358 — 243 — 243 Liabilities at fair value — 929 — 929 — 314 — 314 |
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: 2022 2021 Amount presented in the Group balance sheet* Related amounts not offset in the Group balance Net amount Amount presented in Related amounts not offset in the Group Net amount Financial assets – Derivative financial instruments (note 19) 561 (405) 156 425 (184) 241 Financial liabilities – Derivative financial instruments (note 19) (929) 405 (524) (314) 184 (130) (368) — (368) 111 — 111 Note: * No financial instruments have been offset in the Group balance sheet. |
Schedule of Detailed Information About Hedged Items by Risk Category | The hedged items by risk category are presented below: 2022 Carrying amount of the hedged item Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item Line item in the statement of financial position where the hedged item is included Changes in fair value used for calculating hedge ineffectiveness Cash flow hedge reserve (gross of tax) Fair value hedges Interest rate risk – borrowings (liabilities) 9,223 (355) Borrowings 399 Cash flow hedges Interest rate risk – borrowings (liabilities) 1,824 Borrowings (55) (464) 2021 Carrying amount of the hedged item Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item Line item in the statement of financial position where the hedged item is included Changes in fair value used for calculating hedge ineffectiveness Cash flow hedge Fair value hedges Interest rate risk – borrowings (liabilities) 9,197 101 Borrowings 87 — Cash flow hedges Interest rate risk – borrowings (liabilities) 2,132 — Borrowings (69) (538) |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Reconciliation between total assets available for sale and recoverable amount | The following is a reconciliation between the total assets available for sale and their estimated recoverable value (fair value less costs to sell): 31 December 2022 £m Total assets held-for-sale 1 1,321 Impairment of non-current assets held-for-sale - Russia and Belarus (281) 1,040 Excess impairment beyond non-current assets held-for-sale - Russia and Belarus (273) 767 Note: 1. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Summary of Share-based Payment Expense | The amounts recognised in the income statement in respect of share-based payments were as follows: 2022 2021 2020 Notes Equity- Cash- Equity- Cash- Equity- Cash- LTIP - PSP & RSP 28(a) 38 1 30 — 36 — DSBS 28(b) 36 3 39 2 44 3 Other schemes 7 — 7 — 8 — Total recognised in the income statement 3 81 4 76 2 88 3 |
Summary of Share-based Payment Liability | The Group has recorded liabilities in respect of vested and unvested grants at the end of 2022 and 2021: 2022 2021 Vested Unvested Vested Unvested LTIP - PSP & RSP (0.3) 1.9 0.1 1.1 DSBS 0.5 6.6 0.1 6.4 Total liability 0.2 8.5 0.2 7.5 Note: * The reduction in the liabilities for vested LTIPs was due to shares being exercised at prices lower than the share price at date of grant. Details of the movements for the equity- and cash-settled LTIP scheme during the years ended 31 December 2022 and 31 December 2021, were as follows: 2022 2021 Equity-settled Cash-settled Equity-settled Cash-settled Outstanding at start of year 9,891 243 10,000 274 Granted during the period 2,927 58 3,440 81 Exercised during the period (1,606) (58) (1,639) (48) Forfeited during the period (2,252) (47) (1,910) (64) Outstanding at end of year 8,960 196 9,891 243 Exercisable at end of year 661 40 611 29 Details of the movements for the equity- and cash-settled DSBS scheme during the years ended 31 December 2022 and 31 December 2021, were as follows: 2022 2021 Equity-settled Cash-settled Equity-settled Cash-settled Outstanding at start of year 4,141 223 4,141 200 Granted during the period 1,616 85 1,562 179 Exercised during the period (1,609) (159) (1,497) (142) Forfeited during the period (133) (8) (65) (14) Outstanding at end of year 4,015 141 4,141 223 Exercisable at end of year 1 14 — 1 |
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: 2022 2021 LTIP – DSBS LTIP – DSBS Expected volatility (%) 27.0 27.0 27.0 27.0 Average expected term to exercise (years) 3.0 3.0 3.0 3.0 Risk-free rate (%) 1.4 1.4 0.2 0.2 Expected dividend yield (%) 6.8 6.8 7.7 7.7 Share price at date of grant (£) 32.18 32.18 27.94 27.94 Fair value at grant date (£)* 27.46 / 26.28 26.28 19.87/22.20 22.20 Fair value at grant date (£)* - Management Board 24.80 / 26.28 26.28 17.35/22.20 22.20 Note: * Where two figures have been quoted for the Long-Term Incentive Plan, the numbers relate to PSP and RSP awards, respectively. |
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 - PSP, in determining fair value at grant date. Assumptions used in these models were as follows: 2022 LTIP - PSP 2021 LTIP - PSP Average share price volatility FMCG comparator group (%) 23 23 Average correlation FMCG comparator group (%) 31 29 |
Group employees (Tables)
Group employees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Number and average number of employees [abstract] | |
Summary of Average Number of Persons Employed by Group and Associates | 2022 Number 2021 Number U.S. 4,274 4,789 AME 34,162 35,092 APMEA 13,641 14,484 Subsidiary undertakings 52,077 54,365 Associates 25,874 28,503 77,951 82,868 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Summary of Transactions Between Related Parties | 2022 £m 2021 £m 2020 £m Transactions – revenue 494 524 495 – purchases (190) (123) (80) – other net income 440 387 388 Amounts receivable at 31 December 51 48 33 Amounts payable at 31 December (4) (3) (5) |
Summary of Amounts Incurred by Entity for Provision of Key Management Personnel Services | 2022 £m 2021 £m 2020 £m The total compensation for key management personnel, including Directors, was: – salaries and other short-term employee benefits 19 18 17 – post-employment benefits 1 1 2 – share-based payments 17 16 13 37 35 32 The following table, which is not part of IAS 24 disclosures, shows the aggregate emoluments of the Directors of the Company. Executive Directors Chair Non-Executive Directors Total 2022 £'000 2021 £'000 2020 £'000 2022 £'000 2021 £'000 2020 £'000 2022 £'000 2021 £'000 2020 £'000 2022 £'000 2021 £'000 2020 £'000 Salary; fees; benefits; incentives – salary 2,129 2,119 2,026 2,129 2,119 2,026 – fees 670 727 714 1,027 1,045 1,028 1,697 1,772 1,742 – taxable benefits 449 420 744 59 55 77 78 2 72 586 477 893 – short-term incentives 3,761 4,128 3,274 3,761 4,128 3,274 – long-term incentives 7,888 3,399 1,294 7,888 3,399 1,294 Sub-total 14,227 10,066 7,338 729 782 791 1,105 1,047 1,100 16,061 11,895 9,229 Pension; other emoluments – pension 320 318 304 320 318 304 – other emoluments 6 6 20 6 6 20 Sub-total 326 324 324 326 324 324 Total emoluments 14,553 10,390 7,662 729 782 791 1,105 1,047 1,100 16,387 12,219 9,553 |
Contingent liabilities and fi_2
Contingent liabilities and financial commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Summary of Cases | Case Type Notes Case Numbers as at 31 December 2022 (note 31(a)) Case Numbers as at 31 December 2021 (note 31(a)) Change in Number Increase/(decrease) U.S. tobacco-related actions Medical reimbursement cases 31(b) 2 2 No change Class actions 31(c) 20 20 No change Individual smoking and health cases 31(d) 206 222 (16) Engle Progeny Cases 31(e) 665 1,071 (406) Broin II Cases 31(f) 1,183 1,200 (17) Filter Cases 31(g) 46 46 No change State Settlement Agreements – Enforcement and Validity 31(h) 1 2 (1) Non-U.S. tobacco-related actions Medical reimbursement cases 18 19 (1) Class actions 31(i) 12 12 No change Individual smoking and health cases 31(j) 51 68 (17) Trials/verdicts/judgments of individual Engle progeny cases from 1 January 2020 through 31 December 2022: Total number of trials 31 Number of trials resulting in plaintiffs’ verdicts 16 ** Total damages awarded in final judgments against RJRT US$92,934,000 (approximately £77 million) Amount of overall damages comprising ‘compensatory damages’ (approximately) US$57,869,000 (of overall US$92,934,000 ) (approximately £48 million of £77 million) Amount of overall damages comprising ‘punitive damages’ (approximately) US$35,065,000 (of overall US$92,934,000) (approximately £29 million of £77 million) Note: ** Of the 16 trials resulting in plaintiffs’ verdicts 1 January 2020 to 31 December 2022 (note 31(k)): Number of adverse judgments appealed by RJRT (note 31(l)) 12 Number of adverse judgments, in which RJRT still has time to file an appeal 2 Number of adverse judgments in which an appeal was not, and can no longer be, sought 2 Appeals of individual Engle progeny cases 1 January 2020 to 31 December 2022: Number of adverse judgments appealed by RJRT (note 31(m)) 13 (Note 31(k)) The 31 trials include two cases that were tried twice ( Yount v. R.J. Reynolds Tobacco Co. and Rutkowski v. R. J. Reynolds Tobacco Co. ). In each case, the first trial resulted in mistrial, while the second resulted in a verdict for plaintiff. The 31 cases also include one trial that resulted in a plaintiff verdict, but a new trial was ordered ( Leidinger v. R. J. Reynolds Tobacco Co. ). (Note 31(l)) Of the 12 adverse verdicts appealed by RJRT as a result of judgments arising in the period 1 January 2020 to 31 December 2022: a. eight appeals remain undecided in the District Courts of Appeal; b. two appeals were decided and/or closed in the District Court of Appeals; c. one judgment was affirmed and paid; and d. there was one appeal in which the case was resolved and appeal dismissed. (Note 31(m)) In addition to the 12 cases discussed in note 31(l), RJRT appealed one additional case during the 1 January 2020 to 31 December 2022 period, the original plaintiff verdict of which was returned in November 2019. Case Type U.S. Case Numbers 31 December 2022 U.S. Case Numbers 31 December 2021 Change in Individual Smoking and Health Cases (note 31(n)) 206 222 (16) Engle Progeny Cases (Number of Plaintiffs) (note 31(o)) 665 (838) 1,071 (1,304) (406) (466) Broin II Cases (note 31(p)) 1,183 1,200 (17) Filter Cases (note 31(q)) 46 46 No change |
Operating Subsidiaries' Expenses and Payments under State Settlement Agreements | Reynolds American’s operating subsidiaries’ expenses and payments under the State Settlement Agreements for 2019, 2020, 2021 and 2022 and the projected expenses and payments for 2023 and onwards are set forth below (in millions of U.S. dollars)*: 2019 2020 2021 2022 2023 2024 and thereafter Settlement expenses $2,762 $3,572 $3,420 $2,951 Settlement cash payments $2,918 $2,848 $3,744 $3,129 Projected settlement expenses >$2,800 >$2,800 Projected settlement cash payments >$3,000 >$2,800 Note: * Subject to adjustments for changes in sales volume, inflation, operating profit and other factors. Payments are allocated among the companies on the basis of relative market share or other methods. |
Closed Litigation Matters Explanatory | The following matters on which the Company reported in the contingent liabilities and financial commitments note 31 to the Company’s 2021 financial statements have been dismissed, concluded or resolved as noted below: Matter Jurisdiction Companies named as Defendants Description Disposition Minnesota State Settlement Agreement U.S. RJRT State Settlement Agreements - Enforcement and Validity Settled Texas State Settlement Agreement U.S. RJRT State Settlement Agreements - Enforcement and Validity Settled Fuma International LLC patent litigation U.S. RJR Vapor Vuse patent infringement claims Resolved Reynolds American dissenters' litigation U.S. Reynolds American Inc. Shareholder Litigation Final judgment of North Carolina Supreme Court (upholding Reynolds American's proposed valuation) Rentko / Smoltino asbestos litigation U.S. Reynolds American, RJRT, the Company, BATUS Holdings, Inc., and British American Tobacco (Brands) Inc. Personal Injury Voluntary dismissal by plaintiffs Gilbride asbestos litigation U.S. RJRT Personal Injury Voluntary dismissal by plaintiffs Argentina Tort Law Association medical reimbursement matter Argentina Nobleza Medical reimbursement Court judgment of dismissal |
Schedule of Total Future Minimum Lease Payment under Non-cancellable Operating Leases | The total future minimum payments under non-cancellable service contracts based on when payments fall due: 2022 £m 2021 £m Service contracts Within one year 45 41 Between one and five years 66 81 Beyond five years — 5 111 127 |
Interests in subsidiaries (Tabl
Interests in subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
Summarised Financial Information of Subsidiaries With Material Noncontrolling Interests Explanatory | Summarised financial information 2022 £m 2021 £m 2020 £m Revenue 732 640 553 Profit for the year 153 127 101 – Attributable to non-controlling interests 41 34 27 Total comprehensive income 132 127 91 – Attributable to non-controlling interests 36 34 25 Dividends paid and other appropriations made to non-controlling interests (32) (28) (31) Summary net assets: Non-current assets 322 303 271 Current assets 253 345 271 Non-current liabilities 78 70 58 Current liabilities 166 262 190 Total equity at the end of the year 331 316 294 – Attributable to non-controlling interests 90 86 80 Net cash generated from operating activities 164 52 137 Net cash used in investing activities (46) (26) (11) Net cash used in financing activities (147) (55) (111) Differences on exchange 4 — (1) (Decrease)/increase in net cash and cash equivalents (25) (29) 14 Net cash and cash equivalents at 1 January 1 30 16 Net cash and cash equivalents at 31 December (24) 1 30 |
Summary of Financial Information of Subsidiaries Subject to Significant Restrictions | The table below summarises the assets and liabilities of ITCAN: Summarised financial information 2022 £m 2021 £m Non-current assets 2,554 2,403 Current assets 2,193 1,630 Non-current liabilities (114) (109) Current liabilities (526) (479) 4,107 3,445 |
Summary of Breakdown of Current Assets | A breakdown of current assets has been provided below. 2022 £m 2021 £m Cash and cash equivalents* 1,569 1,114 Inventory 182 126 Investments held at fair value 396 351 Other 46 39 2,193 1,630 Note: * Cash and cash equivalents above include £1,411 million (2021: £1,024 million) of restricted cash and cash equivalents. The Group defines restricted cash and cash equivalents as where there are significant restrictions on its ability to access or use the assets and settle the liabilities of the Group, but excludes cash and cash equivalents where there are also outstanding local currency borrowings or where there is an outstanding excise liability. In addition, dividends payable would also be excluded from restricted cash and cash equivalents if the dividend has been approved by the necessary regulatory channels. |
Summarised financial informat_2
Summarised financial information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Condensed Consolidating Financial Information [Abstract] | |
Summarised Financial Information of Income Statement | Summarised Financial Information Year ended 31 December 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Income Statement Revenue — — — — — — (Loss)/profit from operations (115) (1) (2) — 5 1 Dividend income 7,515 — — — 4,835 148 Net finance income/(costs) 264 (52) 187 — (500) — Profit/(loss) before taxation 7,664 (53) 185 — 4,340 149 Taxation on ordinary activities (10) (9) (21) — 110 — Profit/(loss) for the year 7,654 (62) 164 — 4,450 149 Intercompany Transactions – Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (116) (1) (2) — 47 — Transactions with non-issuer/non-guarantor subsidiaries net finance (cost)/income 52 815 732 — 25 — Dividend income from non-issuer/non-guarantor subsidiaries 7,515 — — — 4,835 148 Summarised Financial Information Year ended 31 December 2021 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Income Statement Revenue — — — — — — (Loss)/profit from operations (111) (1) (2) — 3 — Dividend income 6,200 — — — 4,827 164 Net finance income/(costs) 170 (43) 63 1 (421) — Profit/(loss) before taxation 6,259 (44) 61 1 4,409 164 Taxation on ordinary activities 5 19 1 — 97 — Profit/(loss) for the year 6,264 (25) 62 1 4,506 164 Intercompany Transactions – Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (111) (1) (2) — 36 — Transactions with non-issuer/non-guarantor subsidiaries net finance (cost)/income (2) 709 370 — 28 — Dividend income from non-issuer/non-guarantor subsidiaries 6,200 — — — 4,827 164 |
Summarised Financial Information of Balance Sheet | Summarised Financial Information As at 31 December 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Balance Sheet Non-current assets 1,917 20,962 2,480 1,500 405 45 Current assets 9,166 7,947 42,748 22 1,135 8 Non-current liabilities 1,580 20,018 14,058 1,500 10,094 12 Non-current borrowings 1,572 19,762 13,510 1,500 10,033 — Other non-current liabilities 8 256 548 — 61 12 Current liabilities 55 8,749 29,379 21 1,011 1 Current borrowings 23 8,657 28,525 21 568 1 Other current liabilities 32 92 854 — 443 — Intercompany Transactions – Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 9,117 17,003 42,752 — 700 8 Amounts due to non-issuer/non-guarantor subsidiaries 5 3,890 22,702 — 34 1 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 26,690 1,573 Summarised Financial Information As at 31 December 2021 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN Balance Sheet Non-current assets 1,916 18,192 4,986 1,417 357 75 Current assets 8,443 3,583 35,772 21 1,033 19 Non-current liabilities 9 17,024 13,667 1,417 8,778 19 Non-current borrowings — 16,965 13,560 1,417 8,719 — Other non-current liabilities 9 59 107 — 59 19 Current liabilities 1,607 4,633 25,451 20 882 10 Current borrowings 1,580 4,602 25,081 20 263 10 Other current liabilities 27 31 370 — 619 — Intercompany Transactions - Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 8,405 14,999 38,539 — 1,360 19 Amounts due to non-issuer/non-guarantor subsidiaries — 3,006 20,422 — 48 9 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 23,643 1,488 |
Summary of Unconsolidated Equity Results | BAT p.l.c.’s unconsolidated contribution to the Group’s consolidated equity results is shown below: BAT p.l.c. As at 31 December 2022 £m 2021 £m Total equity 36,682 35,977 Share capital 614 614 Share premium 113 107 Perpetual hybrid bonds 1,685 1,685 Other equity 34,270 33,571 |
Accounting policies (Details)
Accounting policies (Details) £ in Millions, € in Billions | 12 Months Ended | ||||
Sep. 27, 2021 EUR (€) BOND | Dec. 31, 2020 | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure Of Accounting Policies [Line Items] | |||||
Number of perpetual bonds issued | BOND | 2 | ||||
Perpetual bonds | € | € 1 | ||||
Freehold Land Or Assets Classified As Held For Sale | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Property plant and equipment depreciation rates | 0% | ||||
Global Software Solutions | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Reduction in annual amortization expense | £ 26 | £ 26 | |||
Global Software Solutions | Forecast | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Reduction in annual amortization expense | £ 12 | ||||
Bottom of range | Land and buildings | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Property plant and equipment depreciation rates | 2.50% | ||||
Bottom of range | Plant And Equipment | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Property plant and equipment depreciation rates | 3% | ||||
Bottom of range | Computer software | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Intangible assets, remaining useful lives | 3 years | ||||
Top of range | Land and buildings | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Property plant and equipment depreciation rates | 4% | ||||
Top of range | Plant And Equipment | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Property plant and equipment depreciation rates | 25% | ||||
Top of range | Brand names | |||||
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 | 5 years | ||||
Top of range | Global Software Solutions | |||||
Disclosure Of Accounting Policies [Line Items] | |||||
Intangible assets, remaining useful lives | 10 years | 13 years |
Segmental Analyses - Disclosure
Segmental Analyses - Disclosure of Operating Segment Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Profit from operations | 10,523 | 10,234 | 9,962 | |
Net finance costs | (1,641) | (1,486) | (1,745) | |
Share of post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Taxation on ordinary activities | (2,478) | (2,189) | (2,108) | |
Profit for the year | 6,846 | 6,974 | 6,564 | |
Revenue Constant rates £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 11,626 | 11,952 | 11,661 | |
Translation exchange £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 1,382 | (1,877) | ||
Profit from operations | 782 | (802) | ||
Adjusted at current rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 12,408 | 11,150 | 11,365 | |
Adjusting Items | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | (1,885) | (916) | (1,403) | |
Reported | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 27,655 | 25,684 | 25,776 | |
Profit from operations | 10,523 | 10,234 | 9,962 | |
Net finance costs | (1,641) | (1,486) | (1,745) | |
Share of post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Taxation on ordinary activities | (2,478) | (2,189) | (2,108) | |
Profit for the year | 6,846 | 6,974 | 6,564 | |
Reported At Constant Rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 26,273 | 27,561 | ||
U.S. | Revenue Constant rates £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 6,095 | 6,343 | ||
U.S. | Translation exchange £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 1,281 | (839) | ||
Profit from operations | 740 | (456) | ||
U.S. | Adjusted at current rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 6,835 | 5,887 | 5,784 | |
U.S. | Adjusting Items | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | (630) | (321) | (809) | |
U.S. | Reported | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 12,639 | 11,691 | 11,473 | |
Profit from operations | 6,205 | 5,566 | 4,975 | |
U.S. | Reported At Constant Rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 11,358 | 12,530 | ||
AME | Revenue Constant rates £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 3,268 | 3,210 | ||
AME | Translation exchange £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 168 | (481) | ||
Profit from operations | 80 | (151) | ||
AME | Adjusted at current rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 3,348 | 3,059 | 3,259 | |
AME | Adjusting Items | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | (422) | (157) | (183) | |
AME | Reported | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 9,287 | 8,444 | 8,366 | |
Profit from operations | 2,926 | 2,902 | 3,076 | |
AME | Reported At Constant Rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 9,119 | 8,925 | ||
APMEA | Revenue Constant rates £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 2,263 | 2,399 | ||
APMEA | Translation exchange £m | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | (67) | (557) | ||
Profit from operations | (38) | (195) | ||
APMEA | Adjusted at current rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | 2,225 | 2,204 | 2,322 | |
APMEA | Adjusting Items | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Profit from operations | (833) | (438) | (411) | |
APMEA | Reported | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | 5,729 | 5,549 | 5,937 | |
Profit from operations | 1,392 | 1,766 | £ 1,911 | |
APMEA | Reported At Constant Rates | ||||
Disclosure Of Operating Segments [Line Items] | ||||
Revenue | £ 5,796 | £ 6,106 | ||
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Segmental Analyses - Additional
Segmental Analyses - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Geographical Areas [Line Items] | ||||
Profit from operations | £ 10,523 | £ 10,234 | £ 9,962 | |
Revenue from operations | [1] | 27,655 | 25,684 | 25,776 |
Non-current assets for operations | 138,137 | 124,558 | ||
Intangible assets | 129,075 | 115,625 | 115,343 | |
Investments in associates and joint ventures | 2,020 | 1,948 | ||
Goodwill | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Intangible assets | 47,956 | 43,194 | 43,319 | |
ITC Ltd. | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue from operations | 7,126 | 5,312 | 4,892 | |
Non-current assets for operations | 4,402 | 3,889 | ||
Reynolds | U.S. | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue from operations | 12,635 | 11,707 | 11,481 | |
Non-current assets for operations | 119,597 | 106,495 | ||
Revenue Constant rates £m | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Profit from operations | 11,626 | 11,952 | £ 11,661 | |
Revenue Constant rates £m | U.S. | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Profit from operations | 6,095 | 6,343 | ||
Revenue Constant rates £m | AME | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Profit from operations | 3,268 | 3,210 | ||
Revenue Constant rates £m | APMEA | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Profit from operations | £ 2,263 | £ 2,399 | ||
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Segmental Analyses - Summary of
Segmental Analyses - Summary of Depreciation Amortisation and Impairment Charges (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | £ 1,305 | £ 1,076 | £ 1,450 |
Revenue Constant rates £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 770 | 761 | |
Translation exchange £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 30 | (37) | |
Adjusted at current rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 800 | 724 | 751 |
Adjusting Items | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 505 | 352 | 699 |
Reported | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 1,305 | 1,076 | 1,450 |
U.S. | Revenue Constant rates £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 221 | 210 | |
U.S. | Translation exchange £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 16 | (7) | |
U.S. | Adjusted at current rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 237 | 203 | 204 |
U.S. | Adjusting Items | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 322 | 276 | 272 |
U.S. | Reported | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 559 | 479 | 476 |
AME | Revenue Constant rates £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 363 | 351 | |
AME | Translation exchange £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 11 | (18) | |
AME | Adjusted at current rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 374 | 333 | 336 |
AME | Adjusting Items | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 116 | 56 | 126 |
AME | Reported | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 490 | 389 | 462 |
APMEA | Revenue Constant rates £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 186 | 200 | |
APMEA | Translation exchange £m | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 3 | (12) | |
APMEA | Adjusted at current rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 189 | 188 | 211 |
APMEA | Adjusting Items | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 67 | 20 | 301 |
APMEA | Reported | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | £ 256 | £ 208 | £ 512 |
Segmental Analyses - Disclosu_2
Segmental Analyses - Disclosure of Additional Information by Product Category (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
New Categories | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | 2,894 | 2,054 | 1,443 | |
New Categories | Vapour | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | 1,436 | 927 | 611 | |
New Categories | THP | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | 1,060 | 853 | 634 | |
New Categories | Modern Oral | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | 398 | 274 | 198 | |
Traditional Oral | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | 1,209 | 1,118 | 1,160 | |
Combustibles | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | 23,030 | 22,029 | 22,752 | |
Other | ||||
Disclosure Of Products And Services [Line Items] | ||||
Revenue | £ 522 | £ 483 | £ 421 | |
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Segmental Analyses - Disclosu_3
Segmental Analyses - Disclosure of Geographical Information of External Revenue (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Intangible assets | 129,075 | 115,625 | 115,343 | |
Property, plant and equipment | 4,867 | 4,953 | 5,060 | |
Investments in associates and joint ventures | 2,020 | 1,948 | ||
United Kingdom | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
Revenue | 228 | 209 | 188 | |
Intangible assets | 529 | 481 | ||
Property, plant and equipment | 215 | 339 | ||
Investments in associates and joint ventures | 0 | 8 | ||
All foreign countries | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
Revenue | 27,427 | 25,475 | £ 25,588 | |
Intangible assets | 128,546 | 115,144 | ||
Property, plant and equipment | 4,652 | 4,614 | ||
Investments in associates and joint ventures | £ 2,020 | £ 1,940 | ||
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Employee Benefit Costs - Summar
Employee Benefit Costs - Summary of Employee Benefit Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |||
Wages and salaries | £ 2,553 | £ 2,315 | £ 2,277 |
Social security costs | 201 | 185 | 194 |
Other pension and retirement benefit costs | 133 | 139 | 182 |
Share-based payments - equity and cash-settled | 85 | 78 | 91 |
Employee benefit costs | £ 2,972 | £ 2,717 | £ 2,744 |
Employee Benefit Costs - Additi
Employee Benefit Costs - Additional Information (Details) £ in Millions, $ in Billions | 12 Months Ended | ||||
Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure Of Defined Benefit Plans [Line Items] | |||||
Employee benefit costs | £ 315 | £ 160 | £ 91 | ||
United States | |||||
Disclosure Of Defined Benefit Plans [Line Items] | |||||
Gain (loss) on settlement of plan assets and liabilities | 35 | ||||
United States | Reynolds american funded retirement plan (PEP and Affiliates) | |||||
Disclosure Of Defined Benefit Plans [Line Items] | |||||
Retirement plan liabilities | 1,300 | 1,400 | $ 1.6 | $ 1.9 | |
Gain (loss) on settlement of plan assets and liabilities | £ 16 | £ 35 |
Depreciation, Amortisation an_3
Depreciation, Amortisation and Impairment Costs - Summary of Depreciation Amortisation and Impairment Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment costs | £ 1,305 | £ 1,076 | £ 1,450 |
Impairment of goodwill | 0 | 57 | 209 |
Property, plant and equipment | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment costs | 846 | 557 | 752 |
Brand names | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment costs | 317 | 333 | 360 |
Computer software | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment costs | £ 142 | £ 129 | £ 129 |
Depreciation, Amortisation an_4
Depreciation, Amortisation and Impairment Costs - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment | £ 1,305 | £ 1,076 | £ 1,450 |
Impairment of goodwill | 0 | 57 | 209 |
Depreciation and impairment income (cost) | 220 | (11) | 151 |
Adjusting Items | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment | 505 | 352 | 699 |
Twisp Proprietary Limited | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Impairment of goodwill | 11 | ||
Blue Nile Cigarette Company Limited | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Impairment of goodwill | 1 | ||
Myanmar | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Impairment of goodwill | 3 | ||
Peru | COVID-19 | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Impairment of goodwill | 54 | ||
Malaysia | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Impairment of goodwill | 197 | ||
Trademarks and Similar Intangibles | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment | 317 | 333 | 360 |
Gains on disposals of non-current assets | 3 | ||
Trademarks and Similar Intangibles | Adjusting Items | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment | £ 288 | £ 306 | £ 339 |
Top of range | Trademarks and Similar Intangibles | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Intangible assets, remaining useful lives | 20 years |
Other Operating Income - Additi
Other Operating Income - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Income [Line Items] | |||
Other operating income | £ 722 | £ 196 | £ 188 |
Brazil | |||
Other Operating Income [Line Items] | |||
Tax credit other than income tax credits | 472 | ||
Master settlement agreement | RJRT | |||
Other Operating Income [Line Items] | |||
Amount received from escrow funds paid under settlement | 40 | ||
Brazil | |||
Other Operating Income [Line Items] | |||
Adjustment to other taxes levied on tobacco and tobacco related products | 5 | £ 58 | |
Increase (decrease) in contingent consideration asset (liability) | 78 | 130 | |
Social contribution claims sold to financial institutions | £ 38 | £ 45 |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Other Operating Expenses (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Line Items] | |||
Other operating expenses | £ 9,018 | £ 7,468 | £ 7,667 |
The following items are included within other operating expenses: | |||
Master settlement agreement | 2,387 | 2,486 | 2,783 |
Marketing costs in operating expenses | 1,160 | 1,242 | 1,096 |
Inventory write-offs | 250 | 215 | 309 |
Research and development expenses (excluding employee benefit costs and depreciation) | 138 | 141 | 121 |
Loss on disposal of businesses | 6 | (358) | 0 |
Other adjusting items in other operating expenses | 0 | 0 | |
Charges in respect of assets held-for-sale | 612 | 0 | 0 |
Exchange differences | (92) | (19) | 29 |
Hedge ineffectiveness within operating profit | 36 | (5) | (3) |
Expenses relating to short-term leases | 11 | 8 | 10 |
Expenses relating to leases of low-value assets | 1 | 1 | 1 |
Gains arising from sale and leaseback transactions | 0 | 0 | (1) |
Auditor’s remuneration | 29 | 27 | 28 |
Brazil | |||
The following items are included within other operating expenses: | |||
Other adjusting items in other operating expenses | 12 | ||
Competition investigations | |||
The following items are included within other operating expenses: | |||
Other adjusting items in other operating expenses | 79 | 0 | 0 |
Charges in respect of DOJ investigation | |||
Other Operating Expenses [Line Items] | |||
Other operating expenses | 450 | 0 | 0 |
Excise dispute in Turkey, South Korea and Russia | |||
The following items are included within other operating expenses: | |||
Other adjusting items in other operating expenses | £ 0 | £ 26 | £ (40) |
Other Operating Expenses - Mast
Other Operating Expenses - Master Settlements Agreement - Additional Information (Details) £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2020 State | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 GBP (£) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) State | Dec. 31, 2017 USD ($) State | Dec. 31, 2016 State | Dec. 31, 2015 USD ($) | Dec. 31, 2014 GBP (£) State | Dec. 31, 2014 USD ($) State | Dec. 31, 2013 State | Dec. 31, 2012 USD ($) State | |
Other Operating Expenses [Line Items] | ||||||||||||||||
Master settlement agreement | £ | £ 2,387 | £ 2,486 | £ 2,783 | |||||||||||||
R J Reynolds Tobacco Company | Texas, Minnesota and Mississippi | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Payments of litigation claim settlements | $ 8 | |||||||||||||||
R J Reynolds Tobacco Company | Payment obligation | Florida | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Master settlement agreement | 241 | |||||||||||||||
R J Reynolds Tobacco Company | Resolution of claims | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Master settlement agreement | $ 37 | |||||||||||||||
R J Reynolds Tobacco Company | Resolution of claims | Texas, Minnesota and Mississippi | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Master settlement agreement | 264 | |||||||||||||||
R J Reynolds Tobacco Company | Final resolution | Texas and Minnesota | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Master settlement agreement | £ 12 | $ 17 | ||||||||||||||
R J Reynolds Tobacco Company | Master Settlement Agreement and State Settlement Agreements | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Master settlement agreement | 2,951 | 3,420 | 3,572 | |||||||||||||
Settlement cash payments | $ 3,129 | $ 3,744 | $ 2,848 | |||||||||||||
R J Reynolds Tobacco Company | Master settlement agreement | Illinois | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Additional credit received | £ | £ 26 | |||||||||||||||
Claims related to period 2003 to 2012 | R J Reynolds Tobacco Company | Master settlement agreement | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Number of states | State | 2 | 0 | 2 | 2 | 3 | 17 | ||||||||||
Increase of income related to payment obligation | $ 1,000 | |||||||||||||||
Credit period | 5 years | 5 years | 5 years | |||||||||||||
Additional credit received | $ 170 | |||||||||||||||
Claims related to period 2004 to 2014 | R J Reynolds Tobacco Company | Master settlement agreement | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Credit period | 4 years | 4 years | ||||||||||||||
Claims related to period 2004 to 2014 | R J Reynolds Tobacco Company | Master settlement agreement | Five-Year Period from 2016 | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Additional credit received | $ 285 | |||||||||||||||
Claims related to period 2004 to 2014 | R J Reynolds Tobacco Company | Master settlement agreement | Five-Year Period from 2017 | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Credit period | 5 years | |||||||||||||||
Additional credit recognised | $ 61 | |||||||||||||||
Claims related to period 2004 To 2019 | R J Reynolds Tobacco Company | Master settlement agreement | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Number of states | State | 9 | |||||||||||||||
Claims related to period 2004 to 2017 | R J Reynolds Tobacco Company | Master settlement agreement | Five-Year Period from 2018 | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Credit period | 5 years | |||||||||||||||
Additional credit recognised | $ 182 | |||||||||||||||
Claims related to period 2004 to 2017 | R J Reynolds Tobacco Company | Master settlement agreement | Five-Year Period from 2019 | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Credit period | 5 years | |||||||||||||||
Additional credit recognised | $ 205 | |||||||||||||||
Claims related to period 2004 To 2024 | R J Reynolds Tobacco Company | Master settlement agreement | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Number of states | State | 10 | 1 | ||||||||||||||
Claims related to period 2004 To 2018 | R J Reynolds Tobacco Company | Master settlement agreement | Five-Year Period from 2019 | ||||||||||||||||
Other Operating Expenses [Line Items] | ||||||||||||||||
Credit period | 5 years | 5 years | ||||||||||||||
Additional credit recognised | $ 130 |
Other Operating Expenses - Liti
Other Operating Expenses - Litigation costs - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 GBP (£) | Dec. 31, 2020 USD ($) | Dec. 31, 2014 GBP (£) | |
Other Operating Expenses [Line Items] | ||||||
Other adjusting items which have been adjusted within other operating expenses | £ 0 | £ 0 | ||||
Master settlement agreement | £ 2,387 | 2,486 | 2,783 | |||
R J Reynolds Tobacco Company | Illinois | Master settlement agreement | ||||||
Other Operating Expenses [Line Items] | ||||||
Additional credit received | £ 26 | |||||
Engle and Other Litigations Costs | ||||||
Other Operating Expenses [Line Items] | ||||||
Other adjusting items which have been adjusted within other operating expenses | £ 170 | 54 | 87 | |||
Payment obligation | R J Reynolds Tobacco Company | Florida, Texas, Minnesota and Mississippi | ||||||
Other Operating Expenses [Line Items] | ||||||
Other adjusting items which have been adjusted within other operating expenses | 400 | |||||
Payment obligation | R J Reynolds Tobacco Company | Florida | ||||||
Other Operating Expenses [Line Items] | ||||||
Other adjusting items which have been adjusted within other operating expenses | 188 | |||||
Master settlement agreement | $ | $ 241 | |||||
Payment obligation | R J Reynolds Tobacco Company | Texas, Minnesota and Mississippi | ||||||
Other Operating Expenses [Line Items] | ||||||
Other adjusting items which have been adjusted within other operating expenses | £ 212 | |||||
Final resolution | R J Reynolds Tobacco Company | Texas and Minnesota | ||||||
Other Operating Expenses [Line Items] | ||||||
Master settlement agreement | £ 12 | $ 17 |
Other Operating Expenses - Rese
Other Operating Expenses - Research and Development - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature [abstract] | |||
Research and development costs including employee benefit costs and depreciation | £ 323 | £ 304 | £ 307 |
Other Operating Expenses - Loss
Other Operating Expenses - Loss on Disposal of BAT Pars - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Aug. 06, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Line Items] | ||||
Gains (losses) recognised when control of subsidiary is lost | £ (6) | £ 358 | £ 0 | |
B.A.T. Pars Company PJSC | ||||
Other Operating Expenses [Line Items] | ||||
Gains (losses) recognised when control of subsidiary is lost | 358 | |||
Foreign exchange recycled from equity | £ 272 | |||
Impairment charge and associated costs | £ 88 | |||
Unwinding discounted proceeds | £ 6 | £ 2 |
Other Operating Expenses - Tax
Other Operating Expenses - Tax Disputes in Turkey, South Korea and Russia - Additional Information (Details) £ in Millions, ₩ in Billions | 1 Months Ended | 12 Months Ended | ||||
Sep. 16, 2021 GBP (£) | Aug. 23, 2019 KRW (₩) | Nov. 30, 2021 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2019 GBP (£) | |
Other Operating Expenses [Line Items] | ||||||
Other adjusting items in other operating expenses | £ 0 | £ 0 | ||||
Turkey | BAT Tutun | ||||||
Other Operating Expenses [Line Items] | ||||||
Tax installment amount | £ 47 | |||||
South Korea | BAT Korea | Tax reassessment | VAT | ||||||
Other Operating Expenses [Line Items] | ||||||
Settlement received | £ 4 | ₩ 6.7 | ||||
Tax Disputes in Turkey | Turkey | BAT Tutun | ||||||
Other Operating Expenses [Line Items] | ||||||
Tax installment amount | £ 47 | |||||
Number of tax payment instalment | 18 | |||||
Tax Disputes in Turkey | Turkey | BAT Tutun | Excise and penalties disputes | ||||||
Other Operating Expenses [Line Items] | ||||||
Tax installment amount | £ 30 | |||||
Tax Disputes in Turkey | Turkey | BAT Tutun | Interest in net finance costs | ||||||
Other Operating Expenses [Line Items] | ||||||
Tax installment amount | 11 | |||||
Tax Disputes in Turkey | Turkey | BAT Tutun | Taxation | ||||||
Other Operating Expenses [Line Items] | ||||||
Tax installment amount | £ 6 | |||||
Excise dispute in Russia | ||||||
Other Operating Expenses [Line Items] | ||||||
Other adjusting items in other operating expenses | £ 202 | |||||
Amount recognised in relation to prior year | 40 | |||||
Amount used to offset adjusting items included in taxation | £ 14 |
Other Operating Expenses - Char
Other Operating Expenses - Charges in Respect of Nigerian FCCPC Case - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Line Items] | |||
Other adjusting items in other operating expenses | £ 0 | £ 0 | |
Competition investigations | |||
Other Operating Expenses [Line Items] | |||
Other adjusting items in other operating expenses | £ 79 | £ 0 | £ 0 |
Nigerian court | Competition investigations | |||
Other Operating Expenses [Line Items] | |||
Other adjusting items in other operating expenses | £ 79 |
Other Operating Expenses - Asse
Other Operating Expenses - Assets held for sale - Additional Information (Details) - GBP (£) £ in Millions | 4 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Line Items] | ||||
Charges in respect of assets held-for-sale | £ 612 | £ 0 | £ 0 | |
BAT Russia | Discontinued operations | ||||
Other Operating Expenses [Line Items] | ||||
Impairment charges and associated costs | £ 957 | 554 | ||
Charges in respect of assets held-for-sale | £ 58 |
Other Operating Expenses - Su_2
Other Operating Expenses - Summary of Auditor's Remuneration (Details) - KPMG LLP Firms and Associates - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Line Items] | |||
Fees payable for other services | £ 8.2 | £ 8.7 | £ 9.5 |
audit-related assurance services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 7.1 | 8 | 8.5 |
other assurance services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 0.9 | 0.3 | 0.5 |
tax advisory services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 0 | 0 | 0 |
tax compliance | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 0 | 0 | 0 |
audit of defined benefit schemes of the Company | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 0.2 | 0.4 | 0.5 |
other non-audit services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 0 | 0 | 0 |
Other firms | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 0.2 | 0.2 | 0.2 |
Audit providers | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 20.6 | 18.4 | 18.8 |
Parent Company and Group Audit | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 9.4 | 8.7 | 8.7 |
Local Statutory and Group Reporting Audits | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 11 | 9.5 | 9.9 |
Parent Company Local Statutory And Group Audits | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | £ 20.4 | £ 18.2 | £ 18.6 |
Other Operating Expenses - Audi
Other Operating Expenses - Auditor"s Remuneration - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Line Items] | |||
Auditor’s remuneration | £ 29 | £ 27 | £ 28 |
KPMG LLP Firms and Associates | |||
Other Operating Expenses [Line Items] | |||
Auditor’s remuneration | 28.6 | 26.9 | 28.1 |
KPMG LLP Firms and Associates | SEC Regulations | |||
Other Operating Expenses [Line Items] | |||
Auditor’s remuneration | 28.6 | 26.9 | 28.1 |
Remuneration of auditor, other audit-related fees | 0.2 | 0.4 | 0.5 |
Remuneration of auditor, tax fees | 0 | 0 | 0 |
Remuneration of auditor, all other fees | 0.9 | 0.3 | 0.1 |
Accounting firms | SEC Regulations | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, audit fees | £ 27.5 | £ 26.2 | £ 27.5 |
Restructuring and Integration_3
Restructuring and Integration Costs - Summary of Cost of Initiatives in Profit from Operations (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature [abstract] | |||
Employee benefit costs | £ 315 | £ 160 | £ 91 |
Depreciation and impairment income (cost) | 220 | (11) | 151 |
Other operating income | (1) | ||
Other operating expenses | 237 | 1 | 166 |
Business combination integration cost | £ 771 | £ 150 | £ 408 |
Restructuring and Integration_4
Restructuring and Integration Costs - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expense Of Restructuring Activities [Line Items] | |||
Impairment of non-current assets held-for-sale - Russia and Belarus | £ 319 | £ 54 | |
Reynolds American Inc. | |||
Expense Of Restructuring Activities [Line Items] | |||
Reversal of accrual related to shareholders litigation claims | 59 | ||
Factory rationalisation partial reversal of previously estimated impairment | |||
Expense Of Restructuring Activities [Line Items] | |||
Depreciation, amortisation and impairment costs | (25) | ||
Myanmar | |||
Expense Of Restructuring Activities [Line Items] | |||
Quantum initiatives charge | 27 | ||
Quantum initiatives foreign exchange reclassified from equity included in total charge | £ 4 | ||
Indonesia | Machinery | |||
Expense Of Restructuring Activities [Line Items] | |||
Impairment of non-current assets held-for-sale - Russia and Belarus | £ 69 |
Net finance costs - Summary of
Net finance costs - Summary of Net Finance Costs/(Income) (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Finance Costs [Abstract] | |||
Interest expense | £ 1,602 | £ 1,436 | £ 1,605 |
Interest expense on lease liabilities | 25 | 24 | 26 |
Facility fees | 21 | 33 | 23 |
Interest and fair value related to early repurchase of bonds | 0 | 0 | 142 |
Interest related to adjusting tax payables | 36 | 31 | 11 |
Fair value changes on derivative financial instruments and hedged items | (473) | 252 | (217) |
Fair value change on other financial items | (2) | 24 | 0 |
Exchange differences | 524 | (279) | 205 |
Finance costs | 1,733 | 1,521 | 1,795 |
Interest under the effective interest method | (92) | (35) | (50) |
Finance income | (92) | (35) | (50) |
Net finance costs | £ 1,641 | £ 1,486 | £ 1,745 |
Net finance costs - Additional
Net finance costs - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | |
Disclosure Of Finance Income And Costs [Line Items] | |||||
Tender offer | £ 2,653 | ||||
Tender offer accrued interest | £ 24 | ||||
Make-whole bond redemption exercise | £ 462 | ||||
Make-whole bond redemption exercise accrued interest | £ 6 | ||||
Interest related to adjusting tax payables | £ 36 | £ 31 | £ 11 | ||
Fair value change on other financial items | (2) | 24 | 0 | ||
Differences on exchange | 431 | (253) | (253) | ||
Adjusting items which have been adjusted within net finance costs | |||||
Disclosure Of Finance Income And Costs [Line Items] | |||||
Provision charged to net finance costs against non-current investments | 24 | ||||
Provision Reversal To Net Finance Costs Against Non Current Investments | 17 | ||||
Russia | |||||
Disclosure Of Finance Income And Costs [Line Items] | |||||
Differences on exchange | 15 | ||||
Adjusting items which have been adjusted within net finance costs | |||||
Disclosure Of Finance Income And Costs [Line Items] | |||||
Interest related to adjusting tax payables | 31 | 11 | |||
Interest costs | 157 | ||||
Fair value gains to repurchase of bonds | 15 | ||||
Adjusting items which have been adjusted within net finance costs | Factory closure in switzerland | |||||
Disclosure Of Finance Income And Costs [Line Items] | |||||
Interest related to adjusting tax payables | £ 3 | ||||
Adjusting items which have been adjusted within net finance costs | Amnesty tax payment in Turkey | |||||
Disclosure Of Finance Income And Costs [Line Items] | |||||
Interest related to adjusting tax payables | £ 11 | ||||
Adjusting items which have been adjusted within net finance costs | Russia excise dispute | |||||
Disclosure Of Finance Income And Costs [Line Items] | |||||
Interest related to adjusting tax payables | £ 10 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Profit from operations | 10,523 | 10,234 | 9,962 | |
Net finance costs | (1,641) | (1,486) | (1,745) | |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Taxation on ordinary activities | (2,478) | (2,189) | (2,108) | |
Profit for the year | 6,846 | 6,974 | 6,564 | |
Non-controlling interests | (180) | (173) | (164) | |
Post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Associates and JVs | ||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||
Revenue | 9,486 | 7,668 | 7,001 | |
Profit from operations | 1,971 | 1,911 | 2,006 | |
Net finance costs | 21 | 13 | (6) | |
Profit before taxation | 1,992 | 1,924 | 2,000 | |
Taxation on ordinary activities | (595) | (499) | (421) | |
Profit for the year | 1,397 | 1,425 | 1,579 | |
Non-controlling interests | (27) | (22) | (30) | |
Post-tax results of associates and joint ventures | 1,370 | 1,403 | 1,549 | |
Groups Share in Associates and Joint Ventures | ||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||
Revenue | 2,675 | 2,164 | 1,983 | |
Profit from operations | 622 | 567 | 591 | |
Net finance costs | 4 | 2 | (2) | |
Profit before taxation | 626 | 569 | 589 | |
Taxation on ordinary activities | (176) | (147) | (125) | |
Profit for the year | 450 | 422 | 464 | |
Non-controlling interests | (8) | (7) | (9) | |
Post-tax results of associates and joint ventures | £ 442 | £ 415 | £ 455 | |
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Associates and Joint Ventures_2
Associates and Joint Ventures - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
ITC Ltd. | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Ownership interest in associates | 29.19% | 29.38% | 29.42% | 29.46% | |
Group's portion of charges related to stocks destroyed | £ 4 | ||||
Adjustments for gain (loss) on disposal of investments in subsidiaries, joint ventures and associates | £ (3) | £ 6 | 17 | ||
Organigram Inc. | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Amortisation of acquired intangibles | 2 | 2 | £ 0 | ||
Excess impairment beyond non-current assets held-for-sale - Russia and Belarus | 65 | ||||
Impairment Loss Recognised In Profit Or Loss Net Of Tax | 59 | ||||
Tisak d.d. | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Ownership interest in associates | 26% | ||||
Reclassified foreign exchange previously recognised in other comprehensive income | 2 | ||||
Kamaran Industry & Investment Company | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Excess impairment beyond non-current assets held-for-sale - Russia and Belarus | £ 18 | ||||
United Industries Company Limited | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Excess impairment beyond non-current assets held-for-sale - Russia and Belarus | £ 18 |
Associates and Joint Ventures_3
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Share of post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Other comprehensive (expense)/income for the year | 8,707 | 822 | (2,942) | |
Total comprehensive income for the year, net of tax | 15,553 | 7,796 | 3,622 | |
Other comprehensive income: | ||||
Items that may be reclassified to profit and loss | 6 | (17) | (98) | |
Items that will not be reclassified to profit and loss | 19 | 14 | (34) | |
Profit from operations | 10,523 | 10,234 | 9,962 | |
Net finance costs | (1,641) | (1,486) | (1,745) | |
Taxation on ordinary activities | (2,478) | (2,189) | (2,108) | |
Profit for the year | 6,846 | 6,974 | 6,564 | |
Non-controlling interests | 180 | 173 | 164 | |
Groups Share in Associates and Joint Ventures | ||||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | ||||
Revenue | 2,675 | 2,164 | 1,983 | |
Profit before taxation | 626 | 569 | 589 | |
Share of post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Other comprehensive income: | ||||
Items that may be reclassified to profit and loss | 6 | (17) | (98) | |
Items that will not be reclassified to profit and loss | 19 | 14 | (34) | |
Total comprehensive income (note 9) | 467 | 412 | 323 | |
Profit from operations | 622 | 567 | 591 | |
Net finance costs | 4 | 2 | (2) | |
Taxation on ordinary activities | (176) | (147) | (125) | |
Profit for the year | 450 | 422 | 464 | |
Non-controlling interests | 8 | 7 | 9 | |
Associates and JVs | ||||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | ||||
Revenue | 9,486 | 7,668 | 7,001 | |
Profit before taxation | 1,992 | 1,924 | 2,000 | |
Share of post-tax results of associates and joint ventures | 1,370 | 1,403 | 1,549 | |
Other comprehensive income: | ||||
Profit from operations | 1,971 | 1,911 | 2,006 | |
Net finance costs | 21 | 13 | (6) | |
Taxation on ordinary activities | (595) | (499) | (421) | |
Profit for the year | 1,397 | 1,425 | 1,579 | |
Non-controlling interests | 27 | 22 | 30 | |
ITC Ltd. | ||||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | ||||
Revenue | 7,126 | 5,312 | 4,892 | |
Profit before taxation | 2,395 | 1,931 | 1,930 | |
Share of post-tax results of associates and joint ventures | 1,761 | 1,427 | 1,495 | |
Other comprehensive (expense)/income for the year | 56 | (11) | (450) | |
Total comprehensive income for the year, net of tax | £ 1,817 | £ 1,416 | £ 1,045 | |
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Associates and Joint Ventures_4
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Post-tax results of associates and joint ventures | 442 | 415 | 455 | |
Other comprehensive (expense)/income for the year | 8,707 | 822 | (2,942) | |
Total comprehensive income | 15,553 | 7,796 | 3,622 | |
ITC Ltd. | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 7,126 | 5,312 | 4,892 | |
Profit before taxation | 2,395 | 1,931 | 1,930 | |
Post-tax results of associates and joint ventures | 1,761 | 1,427 | 1,495 | |
Other comprehensive (expense)/income for the year | 56 | (11) | (450) | |
Total comprehensive income | 1,817 | 1,416 | 1,045 | |
Other associates | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 2,360 | 2,356 | 2,109 | |
Profit before taxation | (403) | (7) | 70 | |
Post-tax results of associates and joint ventures | (391) | (24) | 54 | |
Other comprehensive (expense)/income for the year | 32 | 0 | 0 | |
Total comprehensive income | (359) | (24) | 54 | |
Associates and Joint Ventures | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 9,486 | 7,668 | 7,001 | |
Profit before taxation | 1,992 | 1,924 | 2,000 | |
Post-tax results of associates and joint ventures | 1,370 | 1,403 | 1,549 | |
Other comprehensive (expense)/income for the year | 88 | (11) | (450) | |
Total comprehensive income | £ 1,458 | £ 1,392 | £ 1,099 | |
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Taxation on Ordinary Activiti_3
Taxation on Ordinary Activities - Summary of Taxation on Ordinary Activities (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Major Components Of Tax Expense Income [Line Items] | |||
Total current tax | £ 2,718 | £ 2,376 | £ 2,425 |
– adjustments in respect of prior periods | 41 | (43) | 18 |
Deferred tax | (240) | (187) | (317) |
– deferred tax relating to origination and reversal of temporary differences | (174) | (29) | (184) |
Deferred tax relating to changes in tax rates | (66) | (158) | (133) |
Taxation on ordinary activities | 2,478 | 2,189 | 2,108 |
United Kingdom | |||
Major Components Of Tax Expense Income [Line Items] | |||
Total current tax | (3) | (25) | 38 |
– current year tax expense | 2 | 1 | 38 |
– adjustments in respect of prior periods | (5) | (26) | 0 |
All foreign countries | |||
Major Components Of Tax Expense Income [Line Items] | |||
Total current tax | 2,721 | 2,401 | 2,387 |
– current year tax expense | 2,675 | 2,418 | 2,369 |
– adjustments in respect of prior periods | £ 46 | £ (17) | £ 18 |
Taxation on Ordinary Activiti_4
Taxation on Ordinary Activities - Additional Information (Details) £ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 GBP (£) | Dec. 31, 2022 GBP (£) CorporateGroup | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2015 GBP (£) | Dec. 31, 2014 GBP (£) | |
Income Tax Disclosure [Line Items] | ||||||
Interest related to adjusting tax payables | £ 36 | £ 31 | £ 11 | |||
Corporation tax rate | 19% | 19% | 19% | |||
Adjusting items in tax | £ (27) | £ (91) | £ (35) | |||
Tax on adjusting items | (176) | (119) | (287) | |||
Non-controlling interests' share of the adjusting items net of tax | 5 | 6 | 8 | |||
Perpetual hybrid bonds £m | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax relief on issuance cost and coupon incurred | £ 11 | 5 | ||||
Adjusting items which have been adjusted within net finance costs | ||||||
Income Tax Disclosure [Line Items] | ||||||
Interest related to adjusting tax payables | 31 | 11 | ||||
Interest on tax payables including FIIGLO | ||||||
Income Tax Disclosure [Line Items] | ||||||
Number of corporate groups in FII GLO | CorporateGroup | 17 | |||||
Litigation settlement amount ordered by court | £ 1,200 | |||||
Litigation settlement amount, applying judgement | £ 300 | |||||
Litigation settlement amount received | £ 1,224 | |||||
Tax on litigation settlement | £ 261 | |||||
Tax rate on litigation settlement | 45% | |||||
Litigation settlement amount received after tax | £ 900 | £ 963 | ||||
Interim repayment made on litigation settlement | 50 | |||||
Interest on tax payables including FIIGLO | Adjusting items which have been adjusted within net finance costs | ||||||
Income Tax Disclosure [Line Items] | ||||||
Interest related to adjusting tax payables | £ 33 | £ 20 | £ 21 |
Taxation on Ordinary Activiti_5
Taxation on Ordinary Activities - Summary of Factors Affecting the Taxation Charge (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |||
Profit before taxation | £ 9,324 | £ 9,163 | £ 8,672 |
Share of post-tax results of associates and joint ventures | (442) | (415) | (455) |
Profit before tax excluding associates and joint ventures | 8,882 | 8,748 | 8,217 |
Tax at 19% (2021 and 2020: 19%) on the above | 1,688 | 1,662 | 1,561 |
Tax at standard rates other than UK corporation tax rate | 397 | 319 | 368 |
Other national tax charges | 244 | 184 | 142 |
Permanent differences | 83 | 87 | 20 |
Overseas withholding taxes | 156 | 189 | 155 |
Double taxation relief on UK profits | (26) | (23) | (22) |
Unutilised/(utilised) tax losses | 12 | (10) | 5 |
Adjustments in respect of prior periods | 41 | (43) | 18 |
Deferred tax relating to changes in tax rates | (66) | (158) | (133) |
Additional net deferred tax (credits)/charges | (51) | (18) | (6) |
Taxation on ordinary activities | £ 2,478 | £ 2,189 | £ 2,108 |
Tax at 19% (2021 and 2020: 19%) on the above, percentage | 19% | 19% | 19% |
Tax at standard rates other than UK corporation tax rate, percentage | 4.50% | 3.60% | 4.50% |
Other national tax charges, percentage | 2.70% | 2.10% | 1.70% |
Permanent differences, percentage | 0.90% | 1% | 0.30% |
Overseas withholding taxes, percentage | 1.80% | 2.20% | 1.90% |
Double taxation relief on UK profits, percentage | 0.30% | 0.30% | 0.30% |
(Utilised)/unutilised tax losses, percentage | 0.10% | (0.10%) | 0.10% |
Adjustments in respect of prior periods, percentage | 0.50% | (0.50%) | 0.20% |
Deferred tax relating to changes in tax rates, percentage | (0.70%) | (1.80%) | (1.60%) |
Additional net deferred tax (credits)/charges, percentage | (0.60%) | (0.20%) | (0.10%) |
Total average effective tax rate | 27.90% | 25% | 25.70% |
Taxation on Ordinary Activiti_6
Taxation on Ordinary Activities - Summary of Tax on Items Recognised Directly in Other Comprehensive Income (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |||
Current tax | £ (6) | £ (4) | £ (5) |
Deferred tax | (106) | (110) | 23 |
(Charged)/credited to other comprehensive income | £ (112) | £ (114) | £ 18 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Earnings Used To Calculate Earnings Per Share (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | |||
Owners of the parent | £ 6,666 | £ 6,801 | £ 6,400 |
Coupon on perpetual hybrid bonds | (60) | (15) | 0 |
Tax on coupon on perpetual hybrid bonds | 11 | 3 | 0 |
Earnings | £ 6,617 | £ 6,789 | £ 6,400 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Reconciliation from Basic to Diluted Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | |||
Basic earnings per share (ordinary shares of 25p each), Earnings | £ 6,617 | £ 6,789 | £ 6,400 |
Diluted earnings per share, Earnings | £ 6,617 | £ 6,789 | £ 6,400 |
Basic earnings per share (ordinary shares of 25p each), Weighted average number of shares (in shares) | 2,256 | 2,287 | 2,286 |
Share options, Weighted average number of shares (in shares) | 11 | 10 | 9 |
Diluted earnings per share, Weighted average number of shares (in shares) | 2,267 | 2,297 | 2,295 |
Basic earnings per share (in GBP per share) | £ 2.933 | £ 2.969 | £ 2.800 |
Share options (in GBP pence per share) | (0.014) | (0.013) | (0.011) |
Diluted earnings per share (in GBP per share) | 2.919 | £ 2.956 | £ 2.789 |
Price per ordinary shares (in GBP pence per share) | £ 0.25 |
Earnings Per Share - Summary _3
Earnings Per Share - Summary of Adjusted Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Adjustments to reconcile profit (loss) to numerator used in calculating basic earnings per share [abstract] | |||
Basic earnings | £ 6,617 | £ 6,789 | £ 6,400 |
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles | 285 | 363 | 548 |
Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles | (67) | (71) | (77) |
Effect of Brazil VAT case | (460) | 0 | 0 |
Tax on Brazil VAT case | 72 | 0 | 0 |
Effect of disposal of subsidiaries | (6) | 358 | 0 |
Effect of excise and VAT disputes | 0 | 26 | (40) |
Tax on excise and VAT disputes | 0 | (3) | 14 |
Effect of charges in respect of DOJ and OFAC investigations | 450 | 0 | 0 |
Effect of charges in respect of Nigerian FCCPC case | 79 | 0 | 0 |
Effect of impairment on held-for-sale assets and associated costs | 612 | 0 | 0 |
Tax effect of impairment of assets held-for-sale and associated costs | 10 | 0 | 0 |
Effect of restructuring and integration costs | 771 | 150 | 408 |
Tax and non-controlling interests on restructuring and integration costs | (116) | (39) | (64) |
Other adjusting items | 154 | 19 | 487 |
Tax effect on other adjusting items | (37) | (5) | (104) |
Effect of early repurchase of bonds | 0 | 0 | 142 |
Tax effect of early repurchase of bonds | 0 | 0 | (32) |
Effect of interest on FII GLO settlement and other | 34 | 55 | 11 |
Tax effect of interest on FII GLO settlement and other | (6) | 0 | (4) |
Effect of associates' adjusting items net of tax | 92 | 12 | (13) |
Deferred tax relating to changes in tax rates | (44) | (98) | (21) |
Effect of retrospective guidance on WHT | 0 | 0 | 42 |
Adjusted earnings (basic) | £ 8,420 | £ 7,556 | £ 7,613 |
Basic earnings per share [abstract] | |||
Basic earnings per share (in GBP per share) | £ 2.933 | £ 2.969 | £ 2.800 |
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles (in GBP per share) | 0.126 | 0.159 | 0.240 |
Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles per share (in GBP per share) | (0.030) | (0.031) | (0.034) |
Effect of Brazil VAT case (in GBP per share) | (0.204) | 0 | 0 |
Tax on Brazil VAT case (in GBP per share) | 0.032 | 0 | 0 |
Effect of disposal of subsidiaries (in GBP per share) | (0.003) | 0.157 | 0 |
Effect of excise and VAT disputes (in GBP per share) | 0 | 0.011 | (0.017) |
Tax on excise and VAT disputes (in GBP per share) | 0 | (0.001) | 0.006 |
Effect of charges in respect of DOJ and OFAC investigations (in GBP per share) | 0.199 | 0 | 0 |
Effect of charges in respect of Nigerian FCCPC case (in GBP per share) | 0.035 | 0 | 0 |
Effect of impairment on held-for-sale assets and associated costs (in GBP per share) | 0.272 | 0 | 0 |
Tax effect of impairment of assets held-for-sale and associated costs (in GBP per share) | (0.004) | 0 | 0 |
Effect of restructuring and integration costs (in GBP per share) | 0.342 | 0.065 | 0.178 |
Tax and non-controlling interests on restructuring and integration costs (in GBP per share) | (0.051) | (0.017) | (0.028) |
Other adjusting items (in GBP per share) | 0.068 | 0.008 | 0.212 |
Tax effect on other adjusting items (in GBP per share) | (0.016) | (0.002) | (0.045) |
Effect of early repurchase of bonds (in GBP per share) | 0 | 0 | 0.062 |
Tax effect of early repurchase of bonds (in GBP per share) | 0 | 0 | (0.014) |
Effect of interest on FII GLO settlement and other (in GBP per share) | 0.015 | 0.024 | 0.005 |
Tax effect of interest on FII GLO settlement and other (in GBP per share) | (0.003) | 0 | (0.002) |
Effect of associates' adjusting items net of tax (in GBP per share) | 0.041 | 0.005 | (0.006) |
Deferred tax relating to changes in tax rates (in GBP per share) | (0.020) | (0.043) | (0.009) |
Effect of retrospective guidance on WHT (in GBP per share) | 0 | 0 | (0.018) |
Adjusted earnings per share (basic) (GBP per share) | £ 3.732 | £ 3.304 | £ 3.330 |
Adjustments to reconcile profit (loss) to numerator used in calculating diluted earnings per share [Abstract] | |||
Diluted earnings per share | £ 6,617 | £ 6,789 | £ 6,400 |
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles | 285 | 363 | 548 |
Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles | (67) | (71) | (77) |
Effect of Brazil VAT case | (460) | 0 | 0 |
Tax on Brazil VAT case | 72 | 0 | 0 |
Effect of disposal of subsidiaries | (6) | 358 | 0 |
Effect of excise and VAT disputes | 0 | 26 | (40) |
Tax on excise and VAT disputes | 0 | (3) | 14 |
Effect of charges in respect of DOJ and OFAC investigations | 450 | 0 | 0 |
Effect of charges in respect of Nigerian FCCPC case | 79 | 0 | 0 |
Effect of impairment on held-for-sale assets and associated costs | 612 | 0 | 0 |
Tax effect of impairment of assets held-for-sale and associated costs | (10) | 0 | 0 |
Effect of restructuring and integration costs | 771 | 150 | 408 |
Tax and non-controlling interests on restructuring and integration costs | (116) | (39) | (64) |
Other adjusting items | 154 | 19 | 487 |
Tax effect on other adjusting items | (37) | (5) | (104) |
Effect of early repurchase of bonds | 0 | 0 | 142 |
Tax effect of early repurchase of bonds | 0 | 0 | (32) |
Effect of interest on FII GLO settlement and other | 34 | 55 | 11 |
Tax effect of interest on FII GLO settlement and other | (6) | 0 | (4) |
Effect of associates' adjusting items net of tax | 92 | 12 | (13) |
Deferred tax relating to changes in tax rates | (44) | (98) | (21) |
Effect of retrospective guidance on WHT | 0 | 0 | (42) |
Adjusted earnings (diluted) | £ 8,420 | £ 7,556 | £ 7,613 |
Diluted earnings per share [abstract] | |||
Diluted earnings per share (in GBP per share) | £ 2.919 | £ 2.956 | £ 2.789 |
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles per share (in GBP per share) | 0.126 | 0.158 | 0.239 |
Tax and non-controlling interests on amortisation and impairment of goodwill, trademarks and similar intangibles per share (in GBP per share) | (0.030) | (0.031) | (0.034) |
Effect of Brazil VAT case per share (in GBP per share) | (0.203) | 0 | 0 |
Tax on Brazil VAT case per share (in GBP per share) | 0.032 | 0 | 0 |
Effect of disposal of subsidiaries (in GBP per share) | (0.003) | 0.156 | 0 |
Effect of excise and VAT disputes (in GBP per share) | 0 | 0.011 | (0.017) |
Tax on excise and VAT disputes (in GBP per share) | 0 | (0.001) | 0.006 |
Effect of charges in respect of DOJ and OFAC investigations (in GBP per share) | 0.199 | 0 | 0 |
Effect of charges in respect of Nigerian FCCPC case (in GBP per share) | 0.035 | 0 | 0 |
Effect of impairment on held-for-sale assets and associated costs (in GBP per share) | 0.268 | 0 | 0 |
Tax on effect of disposal of subsidiaries Tax effect of impairment of assets held-for-sale and associated costs (in GBP per share) | (0.004) | 0 | 0 |
Effect of restructuring and integration costs per share (in GBP per share) | 0.340 | 0.066 | 0.177 |
Tax and non-controlling interests on restructuring and integration costs (in GBP per share) | (0.051) | (0.017) | (0.028) |
Other adjusting items per share (in GBP per share) | 0.068 | 0.008 | 0.212 |
Tax effect on other adjusting items (in GBP per share) | (0.016) | (0.002) | (0.045) |
Effect of early repurchase of bonds (in GBP per share) | 0 | 0 | 0.062 |
Tax effect of early repurchase of bonds (in GBP per share) | 0 | 0 | (0.014) |
Effect of interest on FII GLO settlement and other (in GBP per share) | 0.015 | 0.024 | 0.005 |
Tax effect of interest on FII GLO settlement and other (in GBP per share) | (0.003) | 0 | (0.002) |
Effect of associates' adjusting items net of tax (in GBP per share) | 0.041 | 0.005 | (0.006) |
Deferred tax relating to changes in tax rates (in GBP per share) | (0.019) | (0.043) | (0.009) |
Effect of retrospective guidance on WHT (in GBP per share) | 0 | 0 | (0.018) |
Adjusted earnings per share (diluted) (GBP per share) | £ 3.714 | £ 3.290 | £ 3.317 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Movement In Intangible Assets (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | £ 115,625 | £ 115,343 | |
Differences on exchange | 13,802 | 569 | |
Reallocations | 0 | 0 | |
Amortisation charge | (437) | (435) | |
Impairment | (24) | (84) | |
Disposals | (7) | ||
Held for sale | (6) | ||
Net book value at 31 December | 129,075 | 115,625 | |
– internal development | |||
Disclosure Of Intangible Assets [Line Items] | |||
– internal development | 37 | 139 | |
– separately acquired | |||
Disclosure Of Intangible Assets [Line Items] | |||
– separately acquired | 85 | 93 | |
Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 118,843 | 118,344 | |
Net book value at 31 December | 132,942 | 118,843 | |
Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | 3,867 | 3,218 | £ 3,001 |
Goodwill | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 43,194 | 43,319 | |
Differences on exchange | 4,762 | (68) | |
Reallocations | 0 | 0 | |
Impairment | 0 | (57) | |
Disposals | 0 | ||
Held for sale | 0 | ||
Net book value at 31 December | 47,956 | 43,194 | |
Goodwill | – internal development | |||
Disclosure Of Intangible Assets [Line Items] | |||
– internal development | 0 | 0 | |
Goodwill | – separately acquired | |||
Disclosure Of Intangible Assets [Line Items] | |||
– separately acquired | 0 | 0 | |
Goodwill | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 43,194 | 43,319 | |
Net book value at 31 December | 47,956 | 43,194 | |
Computer software | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 408 | 422 | |
Differences on exchange | 5 | (3) | |
Reallocations | 96 | 118 | |
Amortisation charge | (128) | (116) | |
Impairment | (3) | (13) | |
Disposals | 0 | ||
Held for sale | (4) | ||
Net book value at 31 December | 374 | 408 | |
Computer software | – internal development | |||
Disclosure Of Intangible Assets [Line Items] | |||
– internal development | 0 | 0 | |
Computer software | – separately acquired | |||
Disclosure Of Intangible Assets [Line Items] | |||
– separately acquired | 0 | 0 | |
Computer software | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 1,266 | 1,307 | |
Net book value at 31 December | 1,379 | 1,266 | |
Computer software | Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | 1,005 | 858 | 885 |
Brand names | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 71,867 | 71,482 | |
Differences on exchange | 9,033 | 640 | |
Reallocations | 29 | 18 | |
Amortisation charge | (309) | (319) | |
Impairment | (10) | (14) | |
Disposals | (7) | ||
Held for sale | 0 | ||
Net book value at 31 December | 80,603 | 71,867 | |
Brand names | – internal development | |||
Disclosure Of Intangible Assets [Line Items] | |||
– internal development | 0 | 0 | |
Brand names | – separately acquired | |||
Disclosure Of Intangible Assets [Line Items] | |||
– separately acquired | 0 | 60 | |
Brand names | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 74,227 | 73,598 | |
Net book value at 31 December | 83,454 | 74,227 | |
Brand names | Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | 2,851 | 2,360 | £ 2,116 |
Assets in the course of development | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 156 | 120 | |
Differences on exchange | 2 | 0 | |
Reallocations | (125) | (136) | |
Amortisation charge | 0 | 0 | |
Impairment | (11) | 0 | |
Disposals | 0 | ||
Held for sale | (2) | ||
Net book value at 31 December | 142 | 156 | |
Assets in the course of development | – internal development | |||
Disclosure Of Intangible Assets [Line Items] | |||
– internal development | 37 | 139 | |
Assets in the course of development | – separately acquired | |||
Disclosure Of Intangible Assets [Line Items] | |||
– separately acquired | 85 | 33 | |
Assets in the course of development | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 156 | 120 | |
Net book value at 31 December | 153 | £ 156 | |
Assets in the course of development | Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | £ 11 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) £ in Millions | 12 Months Ended | ||||||
Mar. 11, 2021 GBP (£) | Dec. 31, 2022 GBP (£) CASHGENERATINGUNIT | Dec. 31, 2021 GBP (£) CASHGENERATINGUNIT | Dec. 31, 2020 GBP (£) | Dec. 31, 2019 | Dec. 31, 2017 GBP (£) | Dec. 31, 2016 | |
Disclosure Of Intangible Assets [Line Items] | |||||||
Intangible assets | £ 129,075 | £ 115,625 | £ 115,343 | ||||
Goodwill | 47,956 | 43,194 | |||||
Impairment loss recognised in profit or loss, intangible assets and goodwill | 24 | 84 | |||||
Future contractual commitments | £ 1 | £ 2 | |||||
Number of cash-generating units assessed for impairment | CASHGENERATINGUNIT | 17 | 17 | |||||
Value-in-use calculation on detailed financial budgets extrapolated period | 10 years | ||||||
Percentage of growth of operating units in financial budget in year 2 to 10 per annum | 3% | 3% | |||||
Value-in-use calculation on detailed financial budgets, period | 2 years | ||||||
Percentage of growth of operating units in financial budget after year 10 per annum | 1% | 1% | |||||
Goodwill impairment charge | £ 0 | £ 57 | 209 | ||||
Investments in associates and joint ventures | 2,020 | 1,948 | |||||
Investments held at fair value | £ 121 | 50 | |||||
Charlotte's Web Holdings, Inc. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Investment term | 7 years | ||||||
Organigram Inc. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Acquisition percentage | 19.90% | 19.40% | |||||
Excess impairment beyond non-current assets held-for-sale - Russia and Belarus | £ 65 | ||||||
Investments in associates and joint ventures | 73 | 125 | |||||
Tisak d.d. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Ownership interest in associates | 26% | ||||||
Impairment loss (reversal of impairment loss) recognised in profit or loss | £ 27 | ||||||
Associates and JVs | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Investments in associates and joint ventures | 2,020 | 1,948 | 1,796 | ||||
Dividends received | £ (438) | £ (392) | £ (394) | ||||
ITC Ltd. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Ownership interest in associates | 29.19% | 29.38% | 29.42% | 29.46% | |||
Dividends received | £ (427) | £ (383) | |||||
South Africa Cash-generating Unit | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Impairment charge and associated costs | £ 0 | ||||||
United States | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Number of cash-generating units assessed for impairment | CASHGENERATINGUNIT | 1 | 1 | |||||
APMEA | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Number of cash-generating units assessed for impairment | CASHGENERATINGUNIT | 7 | 7 | |||||
Peru | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | £ 103 | £ 91 | |||||
Impairment charge and associated costs | £ 54 | ||||||
Pre-tax discount rates | 7.50% | 10.70% | |||||
Myanmar | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill impairment charge | £ 3 | ||||||
Malaysia | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | £ 240 | £ 226 | |||||
Forecast assumptions amended period | 5 years | ||||||
Percentage of growth of operating units in financial budget after year 5 per annum | 0% | ||||||
Percentage of decrease in forecast cash flows to reduce headroom to nil | 11.50% | ||||||
Percentage of increase in pre-tax discount to reduce headroom to nil | 1.50% | ||||||
Goodwill impairment charge | £ 197 | ||||||
Pre-tax discount rates | 11.40% | 11.20% | |||||
AME | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Number of cash-generating units assessed for impairment | CASHGENERATINGUNIT | 9 | 9 | |||||
Internally Developed | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Internally developed assets, carrying value | £ 37 | £ 139 | |||||
Cost | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Intangible assets | 132,942 | 118,843 | 118,344 | ||||
Goodwill | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Intangible assets | 47,956 | 43,194 | 43,319 | ||||
Impairment loss recognised in profit or loss, intangible assets and goodwill | 0 | 57 | |||||
Goodwill | Organigram Inc. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Fair Value Of Assets Acquired | £ 30 | ||||||
Goodwill | Internally Developed | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Internally developed assets, carrying value | 0 | 0 | |||||
Goodwill | Cost | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Intangible assets | 47,956 | 43,194 | £ 43,319 | ||||
Computer Software and Assets in the Course of Development | Cost | Internally Developed | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Internally developed assets, carrying value | £ 423 | 517 | |||||
Newport | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Long-term growth rates | 0.89% | ||||||
Camel | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Long-term growth rates | 0.93% | ||||||
Intangible assets other than goodwill | Organigram Inc. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Fair Value Of Assets Acquired | £ 49 | ||||||
Reynolds American Inc. | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Period of value in use calculation on basis of cash flow forecast | 5 years | ||||||
Reynolds American Inc. | Reynolds Goodwill | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | £ 37,181 | 33,021 | |||||
Long-term growth rates | 1.05% | ||||||
Reynolds American Inc. | Trademarks and Similar Intangibles | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Intangible assets | £ 2,071 | 2,038 | |||||
Reynolds American Inc. | Trademarks and Similar Intangibles | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Intangible assets | £ 78,228 | 69,475 | |||||
Reynolds American Inc. | Trademarks and Similar Intangibles | Top of range | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Expected useful lives of definite lived intangible assets | 20 years | ||||||
Rothmans Group | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | £ 4,704 | 4,408 | |||||
Imperial Tobacco Canada | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | 2,460 | £ 2,345 | |||||
Goodwill impairment charge | £ 0 | ||||||
Period of value in use calculation on basis of cash flow forecast | 5 years | ||||||
Long-term growth rates | (2.50%) | ||||||
Pre-tax discount rates | 19.40% | 19.30% | |||||
Period of change in revenue assumption based on combustibles revenue | 5 years | ||||||
Percentage of decrease in revenue in each year | 20.60% | ||||||
ETI | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | £ 1,461 | £ 1,384 | |||||
Skandinavisk Tobakskompagni | |||||||
Disclosure Of Intangible Assets [Line Items] | |||||||
Goodwill | £ 1,102 | £ 1,043 |
Intangible assets (Details) - I
Intangible assets (Details) - Indefinite Lived Intangible Assets - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pall Mall Grizzly CamelSnus Natural American Spirit | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Long-term growth rates | 1% | |
Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 78,228 | £ 69,474 |
Newport | Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 33,236 | £ 29,517 |
Pre-tax discount rates | 9.20% | 9.90% |
Camel | Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 14,058 | £ 12,485 |
Pre-tax discount rates | 8.90% | 9.40% |
Pall Mall | Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 6,252 | £ 5,552 |
Pre-tax discount rates | 8.60% | 8.80% |
Natural American Spirit | Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 13,019 | £ 11,562 |
Pre-tax discount rates | 8.60% | 8.70% |
Camel Snus | Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 1,355 | £ 1,203 |
Pre-tax discount rates | 8.60% | 8.70% |
Grizzly | Brand names | ||
Disclosure of intangible assets with indefinite useful life [line items] | ||
Carrying amount | £ 10,308 | £ 9,155 |
Pre-tax discount rates | 8.60% | 8.70% |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Cash Generating Unit (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 47,956 | £ 43,194 |
Europe | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 5,670 | £ 5,362 |
Pre-tax discount rates | 7.50% | 6.10% |
Canada | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 2,460 | £ 2,345 |
Pre-tax discount rates | 19.40% | 19.30% |
Australia | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 755 | £ 719 |
Pre-tax discount rates | 8.20% | 6.80% |
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] | ||
Carrying amount | £ 541 | £ 512 |
Pre-tax discount rates | 10.40% | 14.60% |
Singapore | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 398 | £ 352 |
Pre-tax discount rates | 7.90% | 8.20% |
Malaysia | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 240 | £ 226 |
Pre-tax discount rates | 11.40% | 11.20% |
Peru | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 103 | £ 91 |
Pre-tax discount rates | 7.50% | 10.70% |
Other | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 344 | £ 333 |
Pre-tax discount rates | 8% | 6.80% |
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] | ||
Pre-tax discount rates | 8.80% | 8.40% |
Global Travel Retail | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Carrying amount | £ 264 | £ 233 |
Pre-tax discount rates | 7.60% | 7.70% |
Intangible Assets - Schedule _3
Intangible Assets - Schedule of Impairment Charge From Possible Change in Assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Newport | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 0.89% |
Camel | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 0.93% |
Reynolds American Inc. | Reynolds Goodwill | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 0.80% |
Reynolds American Inc. | Reynolds Goodwill | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 6.10% |
Reynolds American Inc. | Reynolds Goodwill | Decrease in Terminal Value Rate | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 0.80% |
Reynolds American Inc. | Newport | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 3.40% |
Reynolds American Inc. | Newport | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 21% |
Reynolds American Inc. | Newport | Decrease in Terminal Value Rate | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 4% |
Reynolds American Inc. | Camel | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 5.50% |
Reynolds American Inc. | Camel | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 28.60% |
Reynolds American Inc. | Camel | Decrease in Terminal Value Rate | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 7% |
Reynolds American Inc. | Pall Mall | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 2.20% |
Reynolds American Inc. | Pall Mall | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 14.10% |
Reynolds American Inc. | Pall Mall | Decrease in Terminal Value Rate | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 2.40% |
Reynolds American Inc. | Grizzly | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 0.80% |
Reynolds American Inc. | Grizzly | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 8.90% |
Reynolds American Inc. | Grizzly | Decrease in Terminal Value Rate | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 1% |
Reynolds American Inc. | Camel Snus | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 0.40% |
Reynolds American Inc. | Camel Snus | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 5.10% |
Reynolds American Inc. | Camel Snus | Decrease in Terminal Value Rate | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in long-term growth rate by | 0.50% |
Imperial Tobacco Canada | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Increase in pre-tax discount rate by | 10.20% |
Imperial Tobacco Canada | Decrease in Revenue | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Line Items] | |
Decrease in revenue by | 20.60% |
Intangible assets (Details) Goo
Intangible assets (Details) Goodwill Impairment £ in Millions | 12 Months Ended |
Dec. 31, 2022 GBP (£) | |
Camel Snus | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Current headroom | £ 95 |
Reynolds American Inc. | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Current headroom | £ 11,826 |
Increase in pre tax discount rate | Camel Snus | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Assumptions increase in pre-tax discount rate | 0.94% |
Impact | £ (165) |
Possible impairment | £ (70) |
Increase in pre tax discount rate | Reynolds American Inc. | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Assumptions increase in pre-tax discount rate | 0.93% |
Impact | £ (13,355) |
Possible impairment | £ (1,529) |
Decrease in long term growth rates | Camel Snus | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Assumptions decrease in long term growth rate | 1% |
Impact | £ (175) |
Possible impairment | £ (80) |
Decrease in long term growth rates | Reynolds American Inc. | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Assumptions decrease in long term growth rate | 0.85% |
Impact | £ (13,036) |
Possible impairment | £ (1,210) |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | £ 4,953 | £ 5,060 |
Differences on exchange | 319 | (203) |
Additions | 503 | 554 |
Reallocations | 0 | 0 |
Depreciation | (539) | (505) |
Impairment | (319) | (54) |
Right-of-use assets - reassessments, modifications and terminations | (12) | (16) |
Disposals | (18) | (20) |
Net reclassifications as held-for-sale | 254 | 27 |
Property, plant and equipment closing balance | 4,867 | 4,953 |
Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 8,971 | 9,104 |
Property, plant and equipment closing balance | 9,506 | 8,971 |
Accumulated depreciation and impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | (4,018) | (4,044) |
Property, plant and equipment closing balance | (4,639) | (4,018) |
Right-of-use Assets | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Additions | 234 | 164 |
Freehold property | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 1,033 | 1,074 |
Differences on exchange | 68 | (23) |
Additions | 0 | 0 |
Reallocations | 44 | 44 |
Depreciation | (36) | (35) |
Impairment | (62) | (4) |
Right-of-use assets - reassessments, modifications and terminations | 0 | 0 |
Disposals | (4) | (7) |
Net reclassifications as held-for-sale | 41 | 16 |
Property, plant and equipment closing balance | 1,002 | 1,033 |
Freehold property | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 1,421 | 1,518 |
Property, plant and equipment closing balance | 1,475 | 1,421 |
Freehold property | Accumulated depreciation and impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | (388) | (444) |
Property, plant and equipment closing balance | (473) | (388) |
Freehold property | Right-of-use Assets | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Additions | 0 | 0 |
Leasehold property | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 477 | 483 |
Differences on exchange | 30 | (22) |
Additions | 0 | 1 |
Reallocations | 21 | 51 |
Depreciation | (112) | (110) |
Impairment | (39) | (2) |
Right-of-use assets - reassessments, modifications and terminations | (16) | (11) |
Disposals | (2) | (1) |
Net reclassifications as held-for-sale | 10 | 0 |
Property, plant and equipment closing balance | 466 | 477 |
Leasehold property | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 847 | 798 |
Property, plant and equipment closing balance | 940 | 847 |
Leasehold property | Accumulated depreciation and impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | (370) | (315) |
Property, plant and equipment closing balance | (474) | (370) |
Leasehold property | Right-of-use Assets | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Additions | 117 | 88 |
Plant, Equipment and Other Owned | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 2,620 | 2,632 |
Differences on exchange | 164 | (135) |
Additions | 32 | 45 |
Reallocations | 374 | 441 |
Depreciation | (323) | (303) |
Impairment | (210) | (37) |
Right-of-use assets - reassessments, modifications and terminations | 0 | 0 |
Disposals | (15) | (12) |
Net reclassifications as held-for-sale | 187 | 11 |
Property, plant and equipment closing balance | 2,455 | 2,620 |
Plant, Equipment and Other Owned | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 5,750 | 5,807 |
Property, plant and equipment closing balance | 5,962 | 5,750 |
Plant, Equipment and Other Owned | Accumulated depreciation and impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | (3,130) | (3,175) |
Property, plant and equipment closing balance | (3,507) | (3,130) |
Plant, Equipment and Other Owned | Right-of-use Assets | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Additions | 0 | 0 |
Plant, Equipment and Other Leased | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 117 | 107 |
Differences on exchange | 9 | (5) |
Additions | 0 | 0 |
Reallocations | 2 | 1 |
Depreciation | (68) | (57) |
Impairment | (4) | 0 |
Right-of-use assets - reassessments, modifications and terminations | 4 | (5) |
Disposals | 0 | 0 |
Net reclassifications as held-for-sale | 0 | 0 |
Property, plant and equipment closing balance | 177 | 117 |
Plant, Equipment and Other Leased | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 247 | 217 |
Property, plant and equipment closing balance | 362 | 247 |
Plant, Equipment and Other Leased | Accumulated depreciation and impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | (130) | (110) |
Property, plant and equipment closing balance | (185) | (130) |
Plant, Equipment and Other Leased | Right-of-use Assets | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Additions | 117 | 76 |
Assets in the Course of Construction | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 706 | 764 |
Differences on exchange | 48 | (18) |
Additions | 471 | 508 |
Reallocations | (441) | (537) |
Depreciation | 0 | 0 |
Impairment | (4) | (11) |
Right-of-use assets - reassessments, modifications and terminations | 0 | 0 |
Disposals | (3) | 0 |
Net reclassifications as held-for-sale | 16 | 0 |
Property, plant and equipment closing balance | 767 | 706 |
Assets in the Course of Construction | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Property, plant and equipment opening balance | 706 | 764 |
Property, plant and equipment closing balance | 767 | 706 |
Assets in the Course of Construction | Right-of-use Assets | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Additions | £ 0 | £ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Decrease through classified as held for sale, property, plant and equipment | £ 254 | £ 27 | |
Additions | 503 | 554 | |
Future contractual commitments | 80 | 90 | |
Property, plant and equipment | 4,867 | 4,953 | £ 5,060 |
ESG investment equipment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Additions | 27.1 | ||
Property acquired | IAS16 | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 152 | 165 | 132 |
Right-of use properties | Impact of IFRS 16 | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 314 | 312 | 351 |
Leasehold property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Decrease through classified as held for sale, property, plant and equipment | 10 | 0 | |
Additions | 0 | 1 | |
Property, plant and equipment | £ 466 | 477 | 483 |
Leasehold property | Bottom of range | Brazil, Bangladesh, Germany, Mexico, Romania, Singapore and Vietnam | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Lease term | 5 years | ||
Freehold property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Decrease through classified as held for sale, property, plant and equipment | £ 41 | 16 | |
Additions | 0 | 0 | |
Property, plant and equipment | 1,002 | 1,033 | £ 1,074 |
Freehold property | US, UK, Bangladesh, Indonesia and South Korea | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 1,002 | 1,033 | |
Russia and Belarus Subsidiaries | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Decrease through classified as held for sale, property, plant and equipment | £ 254 | ||
BAT Pars Company PJSC | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Decrease through classified as held for sale, property, plant and equipment | £ 27 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Schedule of Leasehold Land and Property Comprises (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | £ 4,867 | £ 4,953 | £ 5,060 |
Long Leasehold | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 15 | 14 | |
Short Leasehold | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 451 | 463 | |
Short Term and Long Term Leasehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | £ 466 | £ 477 | £ 483 |
Property, Plant And Equipment_4
Property, Plant And Equipment - Schedule of Leasehold Property Net Book Value Movements (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment opening balance | £ 4,953 | £ 5,060 | |
Differences on exchange | 319 | (203) | |
Depreciation, amortisation and impairment | 1,305 | 1,076 | £ 1,450 |
Property, plant and equipment closing balance | 4,867 | 4,953 | 5,060 |
Property acquired | IAS16 | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment opening balance | 165 | 132 | |
Differences on exchange | 11 | (8) | |
Depreciation, amortisation and impairment | 41 | 13 | |
Other net movements | 17 | 54 | |
Property, plant and equipment closing balance | 152 | 165 | 132 |
Right-of use properties | Impact of IFRS 16 | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment opening balance | 312 | 351 | |
Differences on exchange | 19 | (14) | |
Depreciation, amortisation and impairment | 110 | 99 | |
Other net movements | 93 | 74 | |
Property, plant and equipment closing balance | 314 | 312 | 351 |
Short Term and Long Term Leasehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment opening balance | 477 | 483 | |
Differences on exchange | 30 | (22) | |
Depreciation, amortisation and impairment | 151 | 112 | |
Other net movements | 110 | 128 | |
Property, plant and equipment closing balance | £ 466 | £ 477 | £ 483 |
Property, Plant and Equipment_5
Property, Plant and Equipment - Schedule of Cost of Freehold Land (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | £ 4,867 | £ 4,953 | £ 5,060 |
Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 9,506 | 8,971 | £ 9,104 |
Freehold Land within Freehold Property on Which no Depreciate is Provided | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | £ 246 | £ 242 |
Investments in Associates and_3
Investments in Associates and Joint Ventures - Summary of Investments In Associates And Joint Ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
1 January | £ 1,948 | ||
31 December | 2,020 | £ 1,948 | |
Non-current assets | 138,137 | 124,558 | |
Current assets | 15,409 | 12,807 | |
Non-current liabilities | (59,983) | (54,820) | |
Current liabilities | (17,853) | (15,144) | |
Associates and JVs | |||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
1 January | 1,948 | 1,796 | |
Dividends | (438) | (392) | £ (394) |
Additions (note 27(c)) | 39 | 130 | |
Other equity movements | (4) | (2) | |
31 December | 2,020 | 1,948 | 1,796 |
Non-current assets | 1,400 | 1,286 | |
Current assets | 1,138 | 1,144 | |
Non-current liabilities | (75) | (83) | |
Current liabilities | (443) | (399) | |
ITC Ltd. | |||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
Dividends | (427) | (383) | |
Non-current assets | 4,402 | 3,889 | |
Current assets | 3,465 | 3,391 | |
Non-current liabilities | (233) | (231) | |
Current liabilities | (1,244) | (1,061) | |
Market value of investments in associates | 12,059 | 7,839 | |
Other Listed Associates | |||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
1 January | 154 | ||
31 December | 106 | 154 | |
Unlisted Associates | |||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
1 January | 35 | ||
31 December | 49 | 35 | |
Other Lead Associates | |||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
Market value of investments in associates | 206 | 232 | |
Groups Share in Associates and Joint Ventures | |||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||
Total comprehensive income (note 9) | £ 467 | £ 412 | £ 323 |
Investments in Associates and_4
Investments in Associates and Joint Ventures - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |||||||
Mar. 11, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2022 | |
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Investments in associates and joint ventures | £ 2,020 | £ 1,948 | ||||||
Investments held at fair value | £ 121 | 50 | ||||||
Charlotte's Web Holdings, Inc. | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Investments held at fair value | £ 48 | |||||||
Investment term | 7 years | |||||||
Potential proportion ownership interest | 19.90% | |||||||
Organigram Inc. | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Acquisition percentage | 19.90% | 19.40% | ||||||
Impairment loss recognised in profit or loss | £ 65 | |||||||
Impairment Loss Recognised In Profit Or Loss Net Of Tax | 59 | |||||||
Investments in associates and joint ventures | 73 | 125 | ||||||
Organigram Inc. | Intangible assets other than goodwill | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Fair value of net assets acquired | £ 49 | |||||||
Organigram Inc. | Goodwill | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Fair value of net assets acquired | £ 30 | |||||||
Associates and JVs | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Dividends paid by the associate | 438 | 392 | £ 394 | |||||
Investments in associates and joint ventures | 2,020 | 1,948 | £ 1,796 | |||||
ITC Ltd. | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Dividends paid by the associate | £ 427 | £ 383 | ||||||
Ownership interest in associates | 29.19% | 29.38% | 29.42% | 29.46% | ||||
Tisak d.d. | ||||||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||||||||
Ownership interest in associates | 26% | |||||||
Impairment charge recognised in income statement | £ 27 |
Investments in Associates and_5
Investments in Associates and Joint Ventures - Summary of Principal Associate Undertakings (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Significant Investments In Associates [Line Items] | ||||
Non-current assets | £ 138,137 | £ 124,558 | ||
Current assets | 15,409 | 12,807 | ||
Non-current liabilities | (59,983) | (54,820) | ||
Current liabilities | (17,853) | (15,144) | ||
ITC Ltd. | ||||
Disclosure Of Significant Investments In Associates [Line Items] | ||||
Non-current assets | 4,402 | 3,889 | ||
Current assets | 3,465 | 3,391 | ||
Non-current liabilities | (233) | (231) | ||
Current liabilities | (1,244) | (1,061) | ||
Net assets (liabilities) | £ 6,390 | £ 5,988 | ||
Ownership interest in associates | 29.19% | 29.38% | 29.42% | 29.46% |
Investments in associates and joint ventures | £ 1,865 | £ 1,759 |
Retirement Benefit Schemes - Ad
Retirement Benefit Schemes - Additional Information (Details) £ in Millions, $ in Millions, $ in Billions | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 26, 2022 GBP (£) | May 19, 2021 GBP (£) | Mar. 31, 2020 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 GBP (£) | |
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Percentage of principal schemes to total defined benefit schemes | 90% | |||||||||
Percentage of defined benefit net costs charged to the adjusted profit | 70% | |||||||||
Surplus (deficit) in plan | £ 51 | £ (321) | ||||||||
Surplus | £ 909 | £ 732 | ||||||||
Employee benefit costs, in respect of settlements, past service costs and defined contribution costs reported as part of restructuring costs | £ (9) | £ (23) | ||||||||
Current service costs | 13 | 15 | ||||||||
Percentage of scheme liabilities relate to guaranteed benefits | 95% | 95% | 95% | 95% | ||||||
Plan assets | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions | 74 | 74 | ||||||||
Unlisted | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Other assets | £ 3,493 | £ 4,624 | ||||||||
United States | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Gain (loss) on settlement of plan assets and liabilities | 35 | |||||||||
General inflation (%) | 2.50% | 2.50% | 2.50% | 2.50% | ||||||
Rate of increase in salaries (%) | 3.30% | 3.30% | 3.40% | 3.40% | ||||||
Discount rate (%) | 5.50% | 5.50% | 3% | 3% | ||||||
United Kingdom | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
General inflation (%) | 3.20% | 3.20% | 3.40% | 3.40% | ||||||
Rate of increase in salaries (%) | 0% | 0% | 0% | 0% | ||||||
Discount rate (%) | 5% | 5% | 1.80% | 1.80% | ||||||
Germany | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
General inflation (%) | 2.30% | 2.30% | 1.80% | 1.80% | ||||||
Rate of increase in salaries (%) | 2.50% | 2.50% | 2.50% | 2.50% | ||||||
Discount rate (%) | 4.20% | 4.20% | 1.30% | 1.30% | ||||||
Netherlands | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
General inflation (%) | 2% | 2% | 2% | 2% | ||||||
Rate of increase in salaries (%) | 1.40% | 1.40% | 1.40% | 1.40% | ||||||
Discount rate (%) | 3.70% | 3.70% | 1% | 1% | ||||||
Canada | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
General inflation (%) | 2% | 2% | 2% | 2% | ||||||
Rate of increase in salaries (%) | 2.50% | 2.50% | 2.50% | 2.50% | ||||||
Discount rate (%) | 5% | 5% | 2.80% | 2.80% | ||||||
United States and United Kingdom | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Unfunded healthcare expected settlement within 10 years | 50% | 50% | ||||||||
Unfunded healthcare expected settlement between 10 and 20 years | 29% | 29% | ||||||||
Unfunded healthcare expected settlement between 20 and 30 years | 14% | 14% | ||||||||
Unfunded healthcare expected settlement after 30 years | 7% | 7% | ||||||||
United States and Canada | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Unfunded healthcare expected settlement within 10 years | 71% | 71% | ||||||||
Unfunded healthcare expected settlement between 10 and 20 years | 23% | 23% | ||||||||
Unfunded healthcare expected settlement between 20 and 30 years | 5% | 5% | ||||||||
Unfunded healthcare expected settlement after 30 years | 1% | 1% | ||||||||
All other countries | Top of range | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Rate of increase in salaries (%) | 8% | 8% | 8% | 8% | ||||||
Discount rate (%) | 7.50% | 7.50% | 11% | 11% | ||||||
All other countries | Bottom of range | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Rate of increase in salaries (%) | 0% | 0% | 0% | 0% | ||||||
Discount rate (%) | 0% | 0% | 0% | 0% | ||||||
Funded defined benefit plans | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2022 | 110 | |||||||||
Surplus (deficit) in plan | £ 848 | £ 716 | ||||||||
Funded Defined Benefit | Funded defined benefit plans | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions | 74 | |||||||||
Pension schemes | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus (deficit) in plan | 513 | 214 | ||||||||
Surplus | 961 | 785 | ||||||||
Pension schemes | Plan assets | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions | 74 | £ 74 | ||||||||
Pension schemes | Unlisted | Plan assets | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Other assets | 3,484 | 4,615 | ||||||||
Pension schemes | United States | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions | £ 0 | |||||||||
Percentage of funding status remaining fully funded long-term | 90% | |||||||||
Surplus | 494 | 370 | ||||||||
Percentage of unfunded benefit schemes | 39% | 32% | 32% | |||||||
Pension schemes | United Kingdom | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Percentage of risk-reducing assets scheme | 75% | |||||||||
Percentage of return-seeking assets scheme | 25% | |||||||||
Ultimate target to invest in risk reducing asset | 100% | |||||||||
Surplus | 142 | 288 | ||||||||
Percentage of unfunded benefit schemes | 47% | 57% | 57% | |||||||
Pension schemes | Germany | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2023 | 39 | |||||||||
Company contributions to pension schemes. 2024 | 39 | |||||||||
Company contributions to pension schemes, 2025 | 39 | |||||||||
Company contributions to pension schemes, 2026 | 39 | |||||||||
Surplus | 150 | (17) | ||||||||
Pension schemes | Canada, the Netherlands and Switzerland | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2023 | 9 | |||||||||
Company contributions to pension schemes. 2024 | 9 | |||||||||
Company contributions to pension schemes, 2025 | 9 | |||||||||
Company contributions to pension schemes, 2026 | 9 | |||||||||
Pension schemes | Netherlands | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus | 46 | 77 | ||||||||
Pension schemes | Canada | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus | 39 | 18 | ||||||||
Pension schemes | Funded defined benefit plans | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus (deficit) in plan | 900 | 769 | ||||||||
Surplus | 961 | 785 | ||||||||
Pension schemes | Funded defined benefit plans | Germany | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2022 | £ 40 | |||||||||
Pension schemes | Funded defined benefit plans | Canada, the Netherlands and Switzerland | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2022 | 17 | |||||||||
Pension schemes | Solvency liabilities basis | United Kingdom | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus of contributions | £ 7 | |||||||||
Pension schemes | Schemes in surplus only | Germany | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Net retirement benefit asset | 150 | 0 | ||||||||
Pension schemes | Schemes in surplus only | Netherlands | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Net retirement benefit asset | 46 | 77 | ||||||||
Pension schemes | Schemes in surplus only | Canada | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Net retirement benefit asset | 35 | 27 | ||||||||
Reynolds american funded retirement plan (PEP and Affiliates) | United States | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Retirement plan liabilities | $ 1.6 | 1,300 | $ 1.9 | 1,400 | ||||||
Gain (loss) on settlement of plan assets and liabilities | 16 | £ 35 | ||||||||
Surplus (deficit) in plan | 567 | 463 | ||||||||
British American Tobacco UK Pension Fund | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Net retirement benefit asset | 143 | 293 | ||||||||
British American Tobacco UK Pension Fund | Funded defined benefit plans | United Kingdom | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2022 | 36 | 18 | ||||||||
Company contributions | 0 | |||||||||
Surplus (deficit) in plan | £ 139 | |||||||||
Expected benefit payment, year two | 18 | |||||||||
Net defined benefit liability (asset) | 0 | 0 | ||||||||
Assets of benefit plan | £ 143 | £ 586 | ||||||||
British American Tobacco UK Pension Fund | Funded defined benefit plans | United Kingdom | Temporary liquidity facility | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Nominal value | £ 40 | |||||||||
Borrowings maturity term | 2 years | |||||||||
Commitment charge percentage | 0.56% | |||||||||
British American Tobacco UK Pension Fund | Funded defined benefit plans | United Kingdom | Temporary liquidity facility | SONIA | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Borrowings, adjustment to interest rate basis | 2.25% | |||||||||
British American Tobacco UK Pension Fund | Funded defined benefit plans | United Kingdom | Interim payment | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions to pension schemes, 2022 | 18 | |||||||||
Buy-in contract | United Kingdom | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Defined benefit plan ,transfer of assets | £ 198 | £ 383 | ||||||||
Defined benefit plan, deferred premium | £ 35 | |||||||||
Proportion of scheme assets represented by buy-in contracts | 94% | 94% | 84% | 84% | ||||||
Proportion of scheme liabilities represented by buy-in contracts | 100% | 100% | 91% | 91% | ||||||
Imasco Pension Fund Society Plan | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Assets invested in risk-reducing assets | 100% | 100% | ||||||||
Imasco Pension Fund Society Plan | Canada | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Defined benefit plan ,transfer of assets | 451 | $ 766 | ||||||||
Healthcare schemes | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus (deficit) in plan | £ (462) | £ (535) | ||||||||
Surplus | (52) | (53) | ||||||||
Increase of actuarial assumption | 25 | |||||||||
Decrease of actuarial assumption | 19 | |||||||||
Healthcare schemes | Plan assets | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Company contributions | £ 0 | £ 0 | ||||||||
Healthcare schemes | Unlisted | Plan assets | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Other assets | £ 9 | £ 9 | ||||||||
Healthcare schemes | United States | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Percentage of unfunded benefit schemes | 86% | 85% | 85% | |||||||
General inflation (%) | 7.50% | 7.50% | 7% | 7% | ||||||
Healthcare schemes | Canada | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
General inflation (%) | 5% | 5% | ||||||||
Healthcare schemes | UK and Canada | Unlisted | Plan assets | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Other assets | £ 2,453 | £ 3,473 | ||||||||
Healthcare schemes | Funded defined benefit plans | ||||||||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||||||||
Surplus (deficit) in plan | £ (52) | £ (53) |
Retirement Benefit Schemes - Sc
Retirement Benefit Schemes - Schedule of Defined Benefit Amounts Recognised in Balance Sheets (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | £ (7,312) | £ (11,121) | ||
Fair value of funded scheme assets | 7,424 | 10,816 | ||
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 909 | 732 | ||
Unrecognised funded scheme surpluses | 60 | 16 | £ 16 | £ 28 |
Surplus (deficit) in plan | 51 | (321) | ||
Non-current net defined benefit liability | (949) | (1,239) | ||
Retirement benefit assets | 1,000 | 918 | ||
Funded defined benefit plans | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (6,515) | (10,084) | ||
Fair value of funded scheme assets | 7,424 | 10,816 | ||
Unrecognised funded scheme surpluses | (61) | (16) | ||
Surplus (deficit) in plan | 848 | 716 | ||
Unfunded Defined Benefit Plans | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (797) | (1,037) | ||
Pension schemes | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (6,697) | (10,414) | ||
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 961 | 785 | ||
Unrecognised funded scheme surpluses | 60 | 16 | 16 | 28 |
Surplus (deficit) in plan | 513 | 214 | ||
Non-current net defined benefit liability | (483) | (702) | ||
Retirement benefit assets | 996 | 916 | ||
Pension schemes | Funded defined benefit plans | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (6,310) | (9,859) | ||
Fair value of funded scheme assets | 7,271 | 10,644 | ||
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 961 | 785 | ||
Unrecognised funded scheme surpluses | (61) | (16) | ||
Surplus (deficit) in plan | 900 | 769 | ||
Pension schemes | Unfunded Defined Benefit Plans | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (387) | (555) | ||
Healthcare schemes | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (615) | (707) | ||
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | (52) | (53) | ||
Unrecognised funded scheme surpluses | 0 | 0 | £ 0 | £ 0 |
Surplus (deficit) in plan | (462) | (535) | ||
Non-current net defined benefit liability | (466) | (537) | ||
Retirement benefit assets | 4 | 2 | ||
Healthcare schemes | Funded defined benefit plans | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | (205) | (225) | ||
Fair value of funded scheme assets | 153 | 172 | ||
Unrecognised funded scheme surpluses | 0 | 0 | ||
Surplus (deficit) in plan | (52) | (53) | ||
Healthcare schemes | Unfunded Defined Benefit Plans | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded/unfunded scheme liabilities | £ (410) | £ (482) |
Retirement Benefit Schemes - _2
Retirement Benefit Schemes - Schedule of Net Liabilities of Funded Pension Schemes by Territory (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | £ (7,312) | £ (11,121) |
Fair value of funded scheme assets | 7,424 | 10,816 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 909 | 732 |
Funded defined benefit plans | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (6,515) | (10,084) |
Fair value of funded scheme assets | 7,424 | 10,816 |
Pension schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (6,697) | (10,414) |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 961 | 785 |
Pension schemes | Funded defined benefit plans | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (6,310) | (9,859) |
Fair value of funded scheme assets | 7,271 | 10,644 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 961 | 785 |
Pension schemes | United States | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (1,552) | (3,378) |
Fair value of funded scheme assets | 2,046 | 3,748 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 494 | 370 |
Pension schemes | United Kingdom | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (2,114) | (3,357) |
Fair value of funded scheme assets | 2,256 | 3,645 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 142 | 288 |
Pension schemes | Germany | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (711) | (913) |
Fair value of funded scheme assets | 861 | 896 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 150 | (17) |
Pension schemes | Canada | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (574) | (706) |
Fair value of funded scheme assets | 613 | 724 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 39 | 18 |
Pension schemes | Netherlands | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (693) | (769) |
Fair value of funded scheme assets | 739 | 846 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 46 | 77 |
Pension schemes | Switzerland | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (279) | (317) |
Fair value of funded scheme assets | 308 | 311 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | 29 | (6) |
Pension schemes | Rest of Group | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Present value of funded/unfunded scheme liabilities | (387) | (419) |
Fair value of funded scheme assets | 448 | 474 |
Surplus (deficit) in funded plans excluding unrecognised scheme surpluses | £ 61 | £ 55 |
Retirement Benefit Schemes - _3
Retirement Benefit Schemes - Schedule of Defined Benefit Amounts Recognised in Income Statement (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Defined Benefit Plans [Line Items] | |||
– current service cost | £ 51 | £ 62 | |
– past service credit, curtailments and settlements | (13) | (29) | |
– interest on scheme liabilities | 247 | 245 | |
– interest on scheme assets | (246) | (231) | |
– interest on unrecognised funded scheme surpluses | 1 | 1 | £ 1 |
Defined benefit schemes | 40 | 48 | |
Defined contribution schemes | 93 | 91 | |
Total amount recognised in the income statement | 133 | 139 | 182 |
Pension schemes | |||
Disclosure Of Defined Benefit Plans [Line Items] | |||
– current service cost | 50 | 60 | |
– past service credit, curtailments and settlements | (14) | (29) | |
– interest on scheme liabilities | 224 | 226 | |
– interest on scheme assets | (240) | (226) | |
– interest on unrecognised funded scheme surpluses | 1 | 1 | 1 |
Defined benefit schemes | 21 | 32 | |
Defined contribution schemes | 93 | 91 | |
Total amount recognised in the income statement | 114 | 123 | |
Healthcare schemes | |||
Disclosure Of Defined Benefit Plans [Line Items] | |||
– current service cost | 1 | 2 | |
– past service credit, curtailments and settlements | 1 | 0 | |
– interest on scheme liabilities | 23 | 19 | |
– interest on scheme assets | (6) | (5) | |
– interest on unrecognised funded scheme surpluses | 0 | 0 | £ 0 |
Defined benefit schemes | 19 | 16 | |
Defined contribution schemes | 0 | 0 | |
Total amount recognised in the income statement | £ 19 | £ 16 |
Retirement Benefit Schemes - _4
Retirement Benefit Schemes - Schedule of Movements in Scheme Liabilities (Details) - Liabilities - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value beginning balance | £ 11,121 | £ 13,370 |
Differences on exchange | 645 | (117) |
Current service cost | 51 | 62 |
Past service (credit)/cost and settlements | (1,307) | (1,426) |
Interest on scheme liabilities | 247 | 245 |
Contributions by scheme members | (3) | (3) |
Benefits paid | (645) | (760) |
Actuarial losses/(gains) arising from changes in demographic assumptions | (18) | 150 |
Actuarial losses/(gains)arising from changes in financial assumptions | (2,920) | (412) |
Experience losses/(gains) | (135) | (6) |
Present value ending balance | 7,312 | 11,121 |
Pension schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value beginning balance | 10,414 | 12,572 |
Differences on exchange | 567 | (122) |
Current service cost | 50 | 60 |
Past service (credit)/cost and settlements | (1,308) | (1,426) |
Interest on scheme liabilities | 224 | 226 |
Contributions by scheme members | (3) | (3) |
Benefits paid | (586) | (705) |
Actuarial losses/(gains) arising from changes in demographic assumptions | (18) | 147 |
Actuarial losses/(gains)arising from changes in financial assumptions | (2,775) | (394) |
Experience losses/(gains) | (126) | (53) |
Present value ending balance | 6,697 | 10,414 |
Healthcare schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value beginning balance | 707 | 798 |
Differences on exchange | 78 | 5 |
Current service cost | 1 | 2 |
Past service (credit)/cost and settlements | 1 | 0 |
Interest on scheme liabilities | 23 | 19 |
Contributions by scheme members | 0 | 0 |
Benefits paid | (59) | (55) |
Actuarial losses/(gains) arising from changes in demographic assumptions | 0 | 3 |
Actuarial losses/(gains)arising from changes in financial assumptions | (145) | (18) |
Experience losses/(gains) | (9) | 47 |
Present value ending balance | £ 615 | £ 707 |
Retirement Benefit Schemes - _5
Retirement Benefit Schemes - Schedule of Scheme Liabilities by Scheme Membership (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | £ 7,312 | £ 11,121 |
Pension schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 6,697 | 10,414 |
Healthcare schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 615 | 707 |
Active members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 787 | 1,131 |
Active members | Pension schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 756 | 1,090 |
Active members | Healthcare schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 31 | 41 |
Deferred members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 1,056 | 1,751 |
Deferred members | Pension schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 1,055 | 1,750 |
Deferred members | Healthcare schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 1 | 1 |
Retired members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 5,469 | 8,239 |
Retired members | Pension schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | 4,886 | 7,574 |
Retired members | Healthcare schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Defined benefit obligation, at present value | £ 583 | £ 665 |
Retirement Benefit Schemes - Su
Retirement Benefit Schemes - Summary of Movements in Funded Scheme Assets (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | £ 10,816 | |
Fair value of scheme assets at 31 December | 7,424 | £ 10,816 |
Listed | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 628 | 747 |
Bonds | 1,185 | 1,934 |
Other assets | 480 | 558 |
Unlisted | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 806 | 957 |
Bonds | 832 | 1,996 |
Other assets | 3,493 | 4,624 |
Plan assets | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | 10,816 | 12,576 |
Differences on exchange | 627 | (116) |
Settlements | (1,294) | (1,397) |
Interest on scheme assets | 246 | 231 |
Company contributions | 74 | 74 |
Contributions by scheme members | 3 | 3 |
Benefits paid | (561) | (681) |
Actuarial losses/(gains)arising from changes in financial assumptions | 2,487 | (126) |
Fair value of scheme assets at 31 December | 7,424 | 10,816 |
Plan assets | Pension schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | 10,644 | 12,403 |
Differences on exchange | 606 | (116) |
Settlements | (1,294) | (1,397) |
Interest on scheme assets | 240 | 226 |
Company contributions | 74 | 74 |
Contributions by scheme members | 3 | 3 |
Benefits paid | (546) | (668) |
Actuarial losses/(gains)arising from changes in financial assumptions | 2,456 | (119) |
Fair value of scheme assets at 31 December | 7,271 | 10,644 |
Plan assets | Pension schemes | Listed | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 623 | 741 |
Bonds | 1,167 | 1,929 |
Other assets | 473 | 543 |
Plan assets | Pension schemes | Unlisted | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 756 | 892 |
Bonds | 768 | 1,924 |
Other assets | 3,484 | 4,615 |
Plan assets | Healthcare schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | 172 | 173 |
Differences on exchange | 21 | 0 |
Settlements | 0 | 0 |
Interest on scheme assets | 6 | 5 |
Company contributions | 0 | 0 |
Contributions by scheme members | 0 | 0 |
Benefits paid | (15) | (13) |
Actuarial losses/(gains)arising from changes in financial assumptions | 31 | (7) |
Fair value of scheme assets at 31 December | 153 | 172 |
Plan assets | Healthcare schemes | Listed | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 5 | 6 |
Bonds | 18 | 5 |
Other assets | 7 | 15 |
Plan assets | Healthcare schemes | Unlisted | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 50 | 65 |
Bonds | 64 | 72 |
Other assets | £ 9 | £ 9 |
Retirement Benefit Schemes - _6
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | |||
Unrecognised funded scheme surpluses, beginning balance | £ 16 | £ 16 | £ 28 |
Differences on exchange | 4 | (2) | (3) |
Interest on unrecognised funded scheme surpluses | (1) | (1) | (1) |
Movement in year | 39 | 1 | (10) |
Unrecognised funded scheme surpluses, ending balance | 60 | 16 | 16 |
Pension schemes | |||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | |||
Unrecognised funded scheme surpluses, beginning balance | 16 | 16 | 28 |
Differences on exchange | 4 | (2) | (3) |
Interest on unrecognised funded scheme surpluses | (1) | (1) | (1) |
Movement in year | 39 | 1 | (10) |
Unrecognised funded scheme surpluses, ending balance | 60 | 16 | 16 |
Healthcare schemes | |||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | |||
Unrecognised funded scheme surpluses, beginning balance | 0 | 0 | 0 |
Differences on exchange | 0 | 0 | 0 |
Interest on unrecognised funded scheme surpluses | 0 | 0 | 0 |
Movement in year | 0 | 0 | 0 |
Unrecognised funded scheme surpluses, ending balance | £ 0 | £ 0 | £ 0 |
Retirement Benefit Schemes - _7
Retirement Benefit Schemes - Summary of Actuarial Assumptions Rate for Valuations Plans (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United States | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 3.30% | 3.40% |
Rate of increase in pensions in payment (%) | 2.40% | 2.50% |
Rate of increase in deferred pensions (%) | 0.10% | 0.10% |
Discount rate (%) | 5.50% | 3% |
General inflation (%) | 2.50% | 2.50% |
Weighted average duration of liabilities (years) | 10 years 8 months 12 days | 12 years 3 months 18 days |
United Kingdom | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 0% | 0% |
Rate of increase in pensions in payment (%) | 3.20% | 3.40% |
Rate of increase in deferred pensions (%) | 2.80% | 3% |
Discount rate (%) | 5% | 1.80% |
General inflation (%) | 3.20% | 3.40% |
Weighted average duration of liabilities (years) | 12 years 4 months 24 days | 16 years 8 months 12 days |
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 (%) | 2.30% | 1.80% |
Rate of increase in deferred pensions (%) | 2.30% | 1.80% |
Discount rate (%) | 4.20% | 1.30% |
General inflation (%) | 2.30% | 1.80% |
Weighted average duration of liabilities (years) | 10 years 10 months 24 days | 13 years 7 months 6 days |
Canada | ||
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 (%) | 0% | 0% |
Rate of increase in deferred pensions (%) | 0% | 0% |
Discount rate (%) | 5% | 2.80% |
General inflation (%) | 2% | 2% |
Weighted average duration of liabilities (years) | 9 years | 11 years |
Netherlands | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 1.40% | 1.40% |
Rate of increase in pensions in payment (%) | 2.20% | 1.10% |
Rate of increase in deferred pensions (%) | 2.20% | 1.10% |
Discount rate (%) | 3.70% | 1% |
General inflation (%) | 2% | 2% |
Weighted average duration of liabilities (years) | 14 years 4 months 24 days | 17 years 1 month 6 days |
Switzerland | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 1.50% | 1.20% |
Rate of increase in pensions in payment (%) | 0% | 0% |
Rate of increase in deferred pensions (%) | 0% | 0% |
Discount rate (%) | 2.10% | 0.20% |
General inflation (%) | 1.20% | 1% |
Weighted average duration of liabilities (years) | 10 years 2 months 12 days | 13 years 3 months 18 days |
Retirement Benefit Schemes - _8
Retirement Benefit Schemes - Summary of Weighted Average Life Expectancy Used to Determine Benefit Obligations (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United States | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 22 years 1 month 6 days | 21 years 7 months 6 days |
Member age 65 (current life expectancy), Female | 23 years 7 months 6 days | 23 years 6 months |
Member age 45 (life expectancy at age 65), Male | 22 years 2 months 12 days | 22 years 1 month 6 days |
Member age 45 (life expectancy at age 65), Female | 24 years 1 month 6 days | 24 years |
United Kingdom | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 22 years 10 months 24 days | 22 years 10 months 24 days |
Member age 65 (current life expectancy), Female | 24 years 2 months 12 days | 24 years 2 months 12 days |
Member age 45 (life expectancy at age 65), Male | 24 years 6 months | 24 years 6 months |
Member age 45 (life expectancy at age 65), Female | 26 years | 25 years 10 months 24 days |
Germany | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 20 years 7 months 6 days | 20 years 6 months |
Member age 65 (current life expectancy), Female | 24 years | 23 years 10 months 24 days |
Member age 45 (life expectancy at age 65), Male | 23 years 4 months 24 days | 23 years 2 months 12 days |
Member age 45 (life expectancy at age 65), Female | 26 years 3 months 18 days | 26 years 2 months 12 days |
Canada | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 22 years | 22 years |
Member age 65 (current life expectancy), Female | 24 years 4 months 24 days | 24 years 3 months 18 days |
Member age 45 (life expectancy at age 65), Male | 23 years | 23 years |
Member age 45 (life expectancy at age 65), Female | 25 years 3 months 18 days | 25 years 3 months 18 days |
Netherlands | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 21 years | 20 years 8 months 12 days |
Member age 65 (current life expectancy), Female | 24 years 4 months 24 days | 24 years 1 month 6 days |
Member age 45 (life expectancy at age 65), Male | 23 years 2 months 12 days | 22 years 9 months 18 days |
Member age 45 (life expectancy at age 65), Female | 26 years 3 months 18 days | 25 years 9 months 18 days |
Switzerland | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 22 years | 21 years 10 months 24 days |
Member age 65 (current life expectancy), Female | 23 years 8 months 12 days | 23 years 7 months 6 days |
Member age 45 (life expectancy at age 65), Male | 23 years 10 months 24 days | 23 years 9 months 18 days |
Member age 45 (life expectancy at age 65), Female | 25 years 7 months 6 days | 25 years 6 months |
Retirement Benefit Schemes - _9
Retirement Benefit Schemes - Summary of Sensitivity Analysis (Details) £ in Millions | Dec. 31, 2022 GBP (£) |
Actuarial Assumption of Life Expectancy After Retirement | 1 Year Increase | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year increase | £ 170 |
Actuarial Assumption of Life Expectancy After Retirement | 1 Year Decrease | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year decrease | (171) |
Rate of Inflation - Increase/(Decrease) of Scheme Liabilities | 1 Year Increase | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year increase | 95 |
Rate of Inflation - Increase/(Decrease) of Scheme Liabilities | 1 Year Decrease | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year decrease | (91) |
Discount Rate - (Decrease)/Increase of Scheme Liabilities | 1 Year Increase | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year increase | (309) |
Discount Rate - (Decrease)/Increase of Scheme Liabilities | 1 Year Decrease | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year decrease | £ 328 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | £ 15,851 | £ 15,780 | |
Differences on exchange | (2,007) | (148) | |
Credited/(charged) to the income statement | 174 | 29 | |
Credited/(charged) relating to changes in tax rates | 66 | 158 | £ 133 |
Deferred tax | (106) | (110) | 23 |
Net reclassifications as held-for-sale | (22) | ||
Ending balance at 31 December | 17,746 | 15,851 | 15,780 |
Stock relief | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | 4 | 13 | |
Differences on exchange | (8) | (3) | |
Credited/(charged) to the income statement | 46 | 12 | |
Credited/(charged) relating to changes in tax rates | 0 | 0 | |
Deferred tax | 0 | 0 | |
Net reclassifications as held-for-sale | (4) | ||
Ending balance at 31 December | (30) | 4 | 13 |
Excess of capital allowances over depreciation | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | 151 | 189 | |
Differences on exchange | (20) | 5 | |
Credited/(charged) to the income statement | 50 | (16) | |
Credited/(charged) relating to changes in tax rates | (3) | 49 | |
Deferred tax | 0 | 0 | |
Net reclassifications as held-for-sale | 9 | ||
Ending balance at 31 December | 115 | 151 | 189 |
Tax losses | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | (94) | (58) | |
Differences on exchange | 5 | (3) | |
Credited/(charged) to the income statement | 77 | 34 | |
Credited/(charged) relating to changes in tax rates | 34 | 5 | |
Deferred tax | 0 | 0 | |
Net reclassifications as held-for-sale | 0 | ||
Ending balance at 31 December | (210) | (94) | (58) |
Undistributed earnings of associates and subsidiaries | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | 221 | 231 | |
Differences on exchange | (8) | 2 | |
Credited/(charged) to the income statement | 0 | 8 | |
Credited/(charged) relating to changes in tax rates | 0 | 0 | |
Deferred tax | 0 | 0 | |
Net reclassifications as held-for-sale | 0 | ||
Ending balance at 31 December | 229 | 221 | 231 |
Retirement benefits | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | (139) | (246) | |
Differences on exchange | 7 | (4) | |
Credited/(charged) to the income statement | (18) | (22) | |
Credited/(charged) relating to changes in tax rates | (1) | (3) | |
Deferred tax | (89) | (78) | |
Net reclassifications as held-for-sale | 0 | ||
Ending balance at 31 December | (38) | (139) | (246) |
Trademarks | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | 16,779 | 16,784 | |
Differences on exchange | (2,109) | (149) | |
Credited/(charged) to the income statement | 70 | 63 | |
Credited/(charged) relating to changes in tax rates | 45 | 91 | |
Deferred tax | 0 | 0 | |
Net reclassifications as held-for-sale | 0 | ||
Ending balance at 31 December | 18,773 | 16,779 | 16,784 |
Other temporary differences | |||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | |||
Beginning balance at 1 January | (1,071) | (1,133) | |
Differences on exchange | 126 | 4 | |
Credited/(charged) to the income statement | (51) | (50) | |
Credited/(charged) relating to changes in tax rates | (9) | 16 | |
Deferred tax | (17) | (32) | |
Net reclassifications as held-for-sale | (27) | ||
Ending balance at 31 December | £ (1,093) | £ (1,071) | £ (1,133) |
Deferred tax - Additional Infor
Deferred tax - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Deferred tax assets | £ 682 | £ 611 |
Deferred tax liabilities | 18,428 | 16,462 |
Undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised | 1,600 | 900 |
No expiry date | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Unused tax losses for which no deferred tax asset recognised | 364 | 342 |
Unused tax credits for which no deferred tax asset recognised | 80 | 80 |
Within next 20 years | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Unused tax losses for which no deferred tax asset recognised | 429 | 452 |
Within next 10 years | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Deductible temporary differences for which no deferred tax asset is recognised | £ 41 | £ 148 |
Trade and other receivables - S
Trade and other receivables - Summary of trade and other receivables (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other receivables [abstract] | ||
Trade receivables | £ 2,609 | £ 2,998 |
Loans and other receivables | 1,568 | 755 |
Prepayments and accrued income | 431 | 408 |
Net trade and other receivables per balance sheet | 4,608 | 4,161 |
Trade and other receivables, Current | 4,367 | 3,951 |
Trade and other receivables, Non-current | £ 241 | £ 210 |
Trade and other receivables - A
Trade and other receivables - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade debtor balance | £ 164 | £ 110 |
Litigation deposits | 114 | 84 |
Prepayments and accrued income | £ 21 | £ 24 |
U.S. dollar | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 1.90% | 2.20% |
UK Sterling | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 0% | 0.10% |
Euro | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 5.70% | 3.60% |
Other currencies | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 2.40% | 0.90% |
Souza Cruz | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Current receivables from taxes other than income tax | £ 624 | |
Other current receivables | 97 | |
Factoring of receivables | Collection agent | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables derecognised | 533 | £ 562 |
Factoring of receivables | Non collection agent | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables derecognized | 22 | 8 |
Supply chain financing arrangements | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables derecognized | £ 81 | £ 171 |
Trade and other receivables -_2
Trade and other receivables - Summary of trade and other receivables reported in balance sheet net of allowances (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables | £ 2,609 | £ 2,998 |
Loans and other receivables | 1,568 | 755 |
Prepayments and accrued income | 431 | 408 |
Net trade and other receivables per balance sheet | 4,608 | 4,161 |
Cost | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables | 2,660 | 3,035 |
Loans and other receivables | 1,568 | 755 |
Allowance | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables | (51) | (37) |
Loans and other receivables | £ 0 | £ 0 |
Trade and other receivables -_3
Trade and other receivables - Summary of movements in allowance accounts (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Trade And Other Receivables [Line Items] | ||
Allowance account for credit losses of financial assets at beginning of period | £ 37 | £ 41 |
Differences on exchange | 2 | (2) |
Provided in the year | 28 | 7 |
Released | (16) | (9) |
Allowance account for credit losses of financial assets at end of period | 51 | 37 |
Loans and other receivables | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Allowance account for credit losses of financial assets at beginning of period | 0 | 0 |
Differences on exchange | 0 | 0 |
Provided in the year | 0 | 0 |
Released | 0 | 0 |
Allowance account for credit losses of financial assets at end of period | 0 | 0 |
Trade receivables | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Allowance account for credit losses of financial assets at beginning of period | 37 | 41 |
Differences on exchange | 2 | (2) |
Provided in the year | 28 | 7 |
Released | (16) | (9) |
Allowance account for credit losses of financial assets at end of period | £ 51 | £ 37 |
Investments held at fair valu_2
Investments held at fair value - Schedule of Investments (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Financial Assets [Line Items] | ||
Beginning balance | £ 506 | £ 264 |
Difference on exchange | 19 | 4 |
Additions | 228 | 345 |
Disposals | (96) | (98) |
Provisions | 17 | (24) |
Other fair value movements | 26 | 15 |
Ending balance | 700 | 506 |
Current | 579 | 456 |
Non-current | 121 | 50 |
Fair value through P&L | ||
Disclosure Of Financial Assets [Line Items] | ||
Beginning balance | 469 | 255 |
Difference on exchange | 18 | 3 |
Additions | 209 | 327 |
Disposals | (93) | (98) |
Provisions | 17 | (24) |
Other fair value movements | 20 | 6 |
Ending balance | 640 | 469 |
Current | 579 | 456 |
Non-current | 61 | 13 |
Fair value through OCI | ||
Disclosure Of Financial Assets [Line Items] | ||
Beginning balance | 37 | 9 |
Difference on exchange | 1 | 1 |
Additions | 19 | 18 |
Disposals | (3) | 0 |
Provisions | 0 | 0 |
Other fair value movements | 6 | 9 |
Ending balance | 60 | 37 |
Current | 0 | 0 |
Non-current | £ 60 | £ 37 |
Investments Held at Fair Valu_3
Investments Held at Fair Value - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Financial Assets [Line Items] | |||
Investments held at fair value | £ 579 | £ 456 | |
Investments held at fair value through profit and loss due to exchange control restrictions | £ 78 | £ 61 | |
Percentage of investments held at fair value denominated in other than the functional currency of the subsidiary | 5% | 4% | |
Investments other than investments accounted for using equity method | £ 700 | £ 506 | £ 264 |
Additions | 228 | 345 | |
Disposals | 96 | 98 | |
Other fair value movements | 26 | 15 | |
Level 3 | |||
Disclosure Of Financial Assets [Line Items] | |||
Investments other than investments accounted for using equity method | 186 | 101 | |
Additions | 133 | 73 | |
Disposals | 82 | 56 | |
Other fair value movements | £ 26 | 9 | |
Charlotte's Web Holdings, Inc. | |||
Disclosure Of Financial Assets [Line Items] | |||
Investment term | 7 years | ||
Iran | |||
Disclosure Of Financial Assets [Line Items] | |||
Reversal of provision | £ 17 | 24 | |
Imperial Tobacco Canada | |||
Disclosure Of Financial Assets [Line Items] | |||
Investments held at fair value | £ 396 | £ 351 |
Investments Held at Fair Valu_4
Investments Held at Fair Value - Schedule of Reconciliation of Fair Value Investments Cash Flows to Cash Flow Statements (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Available-for-sale financial assets [abstract] | ||
Cash outflow from investments held at fair value | £ 228 | £ 345 |
Cash outflow from loans and other receivables | 29 | 24 |
Cash outflows from investments per cash flow statement | 257 | 369 |
Cash inflow from investments held at fair value | (96) | (98) |
Cash inflow from loans and other receivables | (32) | (43) |
Cash inflows from investments per cash flow statement | £ (128) | £ (141) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivatives (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | £ 561 | £ 425 | |
Liabilities | 929 | 314 | |
Derivative financial assets, Current | 430 | 182 | |
Derivative financial assets, Non-current | 131 | 243 | |
Assets, Derivatives - in respect of net debt | 438 | 273 | |
Assets, Derivatives - other | 123 | 152 | |
Derivative financial liabilities, Current | 427 | 235 | |
Derivative financial liabilities, Non-current | 502 | 79 | |
Liabilities, Derivatives - in respect of net debt | 605 | 182 | |
Liabilities, Derivatives - other | 324 | 132 | |
Net debt | 39,281 | 36,302 | £ 40,241 |
Derivatives in respect of net debt | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Net debt | 167 | (91) | £ (346) |
interest rate swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 43 | 33 | |
Liabilities | 450 | 36 | |
– cross-currency swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 254 | 221 | |
Liabilities | 121 | 35 | |
– forward foreign currency contracts | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 264 | 171 | |
Liabilities | 358 | 243 | |
Fair value hedges | interest rate swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 27 | 5 | |
Liabilities | 435 | 2 | |
Fair value hedges | – cross-currency swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 126 | 114 | |
Liabilities | 0 | 0 | |
Cash flow hedges | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 202 | 188 | |
Liabilities | 192 | 70 | |
Cash flow hedges | interest rate swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 5 | 0 | |
Liabilities | 0 | 0 | |
Cash flow hedges | – cross-currency swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 127 | 107 | |
Liabilities | 121 | 35 | |
Cash flow hedges | – forward foreign currency contracts | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 70 | 81 | |
Liabilities | 71 | 35 | |
Net investment hedges | – forward foreign currency contracts | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 45 | 62 | |
Liabilities | 247 | 81 | |
Held-for-trading | interest rate swaps | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 12 | 28 | |
Liabilities | 14 | 34 | |
Held-for-trading | – forward foreign currency contracts | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Assets | 149 | 28 | |
Liabilities | £ 41 | £ 127 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Assets | £ 561 | £ 425 |
Liabilities | 929 | 314 |
Cash flow hedges | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Assets | 202 | 188 |
Liabilities | 192 | 70 |
Cash flow hedges | Within one year | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Assets | 72 | 78 |
Liabilities | 134 | 33 |
Cash flow hedges | Beyond five years | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Assets | 0 | 107 |
Liabilities | £ 0 | £ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Maturity Dates of Gross-settled Derivative Financial Instruments (Details) - Gross Settled - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | £ 14,219 | £ 8,022 |
Liabilities Inflow | 10,093 | 13,702 |
Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (13,674) | (6,744) |
Liabilities Outflow | (10,582) | (13,394) |
Within one year | – forward foreign currency contracts | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 12,506 | 5,743 |
Liabilities Inflow | 8,691 | 12,407 |
Within one year | – forward foreign currency contracts | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (12,249) | (4,727) |
Liabilities Outflow | (9,049) | (12,096) |
Within one year | – cross-currency swaps | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 731 | 14 |
Liabilities Inflow | 689 | 17 |
Within one year | – cross-currency swaps | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (608) | (22) |
Liabilities Outflow | (767) | (36) |
Later than one year and not later than two years | – forward foreign currency contracts | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 199 | 807 |
Liabilities Inflow | 243 | 143 |
Later than one year and not later than two years | – forward foreign currency contracts | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (193) | (779) |
Liabilities Outflow | (247) | (113) |
Later than one year and not later than two years | – cross-currency swaps | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 9 | 705 |
Liabilities Inflow | 10 | 665 |
Later than one year and not later than two years | – cross-currency swaps | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (15) | (592) |
Liabilities Outflow | (17) | (689) |
2024 and thereafter | – cross-currency swaps | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 9 | 9 |
Liabilities Inflow | 460 | 10 |
2024 and thereafter | – cross-currency swaps | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (15) | (15) |
Liabilities Outflow | (502) | (15) |
Between three and four years | – cross-currency swaps | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 9 | 9 |
Liabilities Inflow | 0 | 460 |
Between three and four years | – cross-currency swaps | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (15) | (15) |
Liabilities Outflow | 0 | (445) |
Between four and five years | – cross-currency swaps | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 756 | 9 |
Liabilities Inflow | 0 | 0 |
Between four and five years | – cross-currency swaps | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | (579) | (15) |
Liabilities Outflow | 0 | 0 |
Beyond five years | – cross-currency swaps | Inflow | ||
Disclosure of derivative financial instruments | ||
Assets Inflow | 0 | 726 |
Liabilities Inflow | 0 | 0 |
Beyond five years | – cross-currency swaps | Outflow | ||
Disclosure of derivative financial instruments | ||
Assets Outflow | 0 | (579) |
Liabilities Outflow | £ 0 | £ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Maturity Dates of Net-settled Derivative Financial Instruments (Details) - Net settled - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | £ 316 | £ 173 |
Liabilities outflow/(inflow) | 1,282 | 261 |
interest rate swaps | Within one year | ||
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | 263 | 127 |
Liabilities outflow/(inflow) | 531 | 225 |
interest rate swaps | Later than one year and not later than two years | ||
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | 30 | 25 |
Liabilities outflow/(inflow) | 134 | 19 |
interest rate swaps | 2024 and thereafter | ||
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | 0 | 23 |
Liabilities outflow/(inflow) | 84 | 11 |
interest rate swaps | Between three and four years | ||
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | 0 | (2) |
Liabilities outflow/(inflow) | 66 | 11 |
interest rate swaps | Between four and five years | ||
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | 0 | 0 |
Liabilities outflow/(inflow) | 7 | 12 |
interest rate swaps | Beyond five years | ||
Disclosure of derivative financial instruments | ||
Assets Inflow/(outflow) | 23 | 0 |
Liabilities outflow/(inflow) | £ 460 | £ (17) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Items Designated As Hedging Instruments (Details) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Fair value hedges | interest rate swaps | Interest rate risk exposure | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 4,657 | 4,413 |
Changes in fair value used for calculating hedge ineffectiveness | £ (417) | £ (35) |
Fair value hedges | – cross-currency swaps | Interest rate risk exposure | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 710 | 672 |
Changes in fair value used for calculating hedge ineffectiveness | £ 11 | £ (52) |
Cash flow hedges | interest rate swaps | Interest rate risk exposure | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 1,247 | 0 |
Changes in fair value used for calculating hedge ineffectiveness | £ (5) | £ 0 |
Cash flow hedges | – cross-currency swaps | Interest rate risk exposure | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 1,825 | 1,751 |
Changes in fair value used for calculating hedge ineffectiveness | £ 60 | £ 69 |
Cash flow hedges | – forward foreign currency contracts | Foreign currency risk exposure | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 3,695 | 3,573 |
Changes in fair value used for calculating hedge ineffectiveness | £ (2) | £ 49 |
Net investment hedges (derivative related) | – forward foreign currency contracts | Foreign currency risk exposure | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 6,407 | 6,120 |
Changes in fair value used for calculating hedge ineffectiveness | £ (208) | £ (27) |
Net investment hedges (non-derivative related) | Long-term Borrowings | ||
Disclosure of derivative financial instruments | ||
Nominal amount of hedging instrument | 389 | 368 |
Changes in fair value used for calculating hedge ineffectiveness | £ 21 | £ (24) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Classes of current inventories [abstract] | ||
Raw materials and consumables | £ 2,370 | £ 2,100 |
Finished goods and work in progress | 3,159 | 3,046 |
Goods purchased for resale | 142 | 133 |
Inventories | £ 5,671 | £ 5,279 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of current inventories [abstract] | |||
Inventory write-offs | £ 250 | £ 215 | £ 309 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule Representing Cash and Cash Equivalents (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents [abstract] | ||
Cash and bank balances | £ 3,116 | £ 2,529 |
Cash equivalents | 330 | 280 |
Cash and cash equivalents | £ 3,446 | £ 2,809 |
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, 2022 | Dec. 31, 2021 |
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 3,446 | £ 2,809 |
Functional currency | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 2,979 | 2,422 |
U.S. dollar | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 207 | 170 |
Euro | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 129 | 92 |
Other currencies | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 131 | £ 125 |
Cash and Cash Equivalents - S_2
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents [abstract] | ||||
Cash and cash equivalents | £ 3,446 | £ 2,809 | ||
Less overdrafts and accrued interest | (109) | (346) | ||
Net cash and cash equivalents | £ 3,337 | £ 2,463 | £ 2,888 | £ 2,035 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 3,446 | £ 2,809 |
Restricted cash and cash equivalents principally due to exchange control restrictions | 324 | 305 |
Imperial Tobacco Canada | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 1,569 | 1,114 |
Restricted cash and cash equivalents | 1,411 | 1,024 |
Hedging Instrument | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 34 | £ 42 |
Capital and reserves - Summary
Capital and reserves - Summary of Movements of Called Up Share Capital (Details) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 GBP (£) shares | Dec. 31, 2021 GBP (£) shares | Dec. 31, 2020 GBP (£) shares | |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Allotted and fully paid beginning balance | £ 614,000 | ||
Changes during the year - share option schemes | 5,000 | £ 2,000 | |
Allotted and fully paid ending balance | £ 614,000 | £ 614,000 | |
Ordinary shares [member] | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Allotted and fully paid beginning balance (in shares) | shares | 2,456,617,788 | 2,456,591,597 | 2,456,520,738 |
Changes during the year - share option schemes (in shares) | shares | 249,632 | 26,191 | 70,859 |
Allotted and fully paid ending balance (in shares) | shares | 2,456,867,420 | 2,456,617,788 | 2,456,591,597 |
Allotted and fully paid beginning balance | £ 614,150 | £ 614,140 | £ 614,120 |
Changes during the year - share option schemes | 60 | 10 | 20 |
Allotted and fully paid ending balance | £ 614,210 | £ 614,150 | £ 614,140 |
Capital and reserves - Summar_2
Capital and reserves - Summary of Composition of Share Premium Account, Capital Redemption Reserves and Merger Reserves (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Total equity | £ 75,710 | £ 67,401 | £ 62,955 | £ 64,160 |
Share premium account | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Total equity | 113 | 107 | 103 | |
Capital redemption reserve | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Total equity | 101 | 101 | 101 | |
Merger reserves | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Total equity | 26,414 | 26,414 | 26,414 | |
Share premium, capital redemption and merger reserves £m | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Total equity | £ 26,628 | £ 26,622 | £ 26,618 | £ 26,609 |
Capital and reserves - Addition
Capital and reserves - Additional Information (Details) £ / shares in Units, € in Millions, £ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Feb. 29, 2024 £ / shares | Nov. 30, 2023 £ / shares | Aug. 31, 2023 £ / shares | May 31, 2023 £ / shares | Feb. 28, 2023 GBP (£) | Nov. 30, 2022 GBP (£) | Aug. 31, 2022 GBP (£) | May 31, 2022 GBP (£) | Feb. 28, 2022 GBP (£) | Feb. 10, 2022 GBP (£) | Nov. 30, 2021 GBP (£) | Sep. 27, 2021 GBP (£) BOND | Sep. 27, 2021 EUR (€) BOND | Aug. 31, 2021 GBP (£) | May 31, 2021 GBP (£) | Dec. 31, 2022 GBP (£) INSTALMENT £ / shares shares | Sep. 30, 2022 GBP (£) | Dec. 31, 2021 GBP (£) shares | Dec. 31, 2022 GBP (£) INSTALMENT £ / shares shares | Dec. 31, 2021 GBP (£) £ / shares shares | Dec. 31, 2020 GBP (£) £ / shares shares | Sep. 27, 2021 EUR (€) | Dec. 31, 2019 GBP (£) | Dec. 31, 2018 GBP (£) | Jul. 25, 2017 GBP (£) | Dec. 31, 2004 GBP (£) | Dec. 31, 1999 GBP (£) | |
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Increase decrease from share based payment transactions | £ 81 | £ 76 | £ 88 | ||||||||||||||||||||||||
Total equity | £ 75,710 | £ 67,401 | 75,710 | 67,401 | 62,955 | £ 64,160 | |||||||||||||||||||||
– reclassified and reported in profit for the year | 5 | 291 | 0 | ||||||||||||||||||||||||
Cost of treasury shares repurchased and not cancelled | 6,821 | 4,823 | 4,836 | ||||||||||||||||||||||||
Cost of own shares held in employee share ownership trusts | £ 295 | £ 299 | £ 314 | ||||||||||||||||||||||||
Proposed treasury shares repurchase amount | £ 2,000 | ||||||||||||||||||||||||||
Treasury shares held in trust | shares | 5,920,638 | 6,269,959 | 5,920,638 | 6,269,959 | 6,053,158 | ||||||||||||||||||||||
Treasury shares repurchased | shares | 221,000,192 | 161,930,217 | 221,000,192 | 161,930,217 | 162,347,246 | ||||||||||||||||||||||
Number of perpetual hybrid bonds issued | BOND | 2 | 2 | |||||||||||||||||||||||||
Perpetual hybrid bonds | € | € 1,000 | ||||||||||||||||||||||||||
Perpetual hybrid bonds total | £ 1,685 | £ 1,685 | £ 1,685 | £ 1,685 | |||||||||||||||||||||||
Total issuance cost | £ 22 | € 26 | |||||||||||||||||||||||||
Payment of coupons | £ 60 | £ 6 | £ 0 | ||||||||||||||||||||||||
Interim quarterly Dividend declared per share | £ / shares | £ 2.309 | £ 2.178 | £ 2.156 | ||||||||||||||||||||||||
Dividend payable | £ 1,219 | £ 1,223 | £ 1,239 | £ 1,236 | £ 1,232 | £ 1,228 | £ 1,241 | ||||||||||||||||||||
Dividend recognised as appropriation from reserves | £ 4,915 | £ 4,904 | £ 4,747 | ||||||||||||||||||||||||
Price per ordinary shares (in GBP pence per share) | £ / shares | £ 0.25 | £ 0.25 | |||||||||||||||||||||||||
Dividends payable number of installments | INSTALMENT | 4 | 4 | |||||||||||||||||||||||||
Dividend payables | £ 5,163 | £ 5,163 | |||||||||||||||||||||||||
At Fair Value | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Perpetual hybrid bonds total | 1,331 | 1,651 | 1,331 | 1,651 | |||||||||||||||||||||||
September 2021 equity classified bonds 1&2 | 3% Perpetual hybrid bond | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Payment of coupons | 27 | £ 6 | |||||||||||||||||||||||||
September 2021 equity classified bonds 1&2 | 3.75% Perpetual hybrid bond | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Payment of coupons | £ 33 | ||||||||||||||||||||||||||
Five year tranches | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Percentage of coupon associated with perpetual bonds | 3% | 3% | 3% | ||||||||||||||||||||||||
Eight year tranches | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Percentage of coupon associated with perpetual bonds | 3.75% | 3.75% | 3.75% | ||||||||||||||||||||||||
Ordinary share | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Dividend payable | £ 1,211 | ||||||||||||||||||||||||||
Dividend payable per ordinary share | £ / shares | £ 57.72 | £ 57.72 | £ 57.72 | £ 57.72 | |||||||||||||||||||||||
B A T Industries Plc | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
BAT Plc acquisition of BAT Industries 1998 | £ 483 | ||||||||||||||||||||||||||
Rothmans | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Accumulated balance preference shares converted 2004 relating to Rothmans transactions | £ 90 | ||||||||||||||||||||||||||
Kamaran Industry & Investment Company | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
– reclassified and reported in profit for the year | 1 | ||||||||||||||||||||||||||
Reynolds American Inc. | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Ownership interest acquired | 57.80% | ||||||||||||||||||||||||||
Share premium account | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Total equity | 113 | £ 107 | 113 | 107 | 103 | ||||||||||||||||||||||
Share premium account | Ordinary shares issued under share option schemes | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Increase decrease from share based payment transactions | 5 | 0 | 2 | ||||||||||||||||||||||||
Share premium account | Shares repurchased and not cancelled | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Increase decrease from share based payment transactions | 1 | 4 | 7 | ||||||||||||||||||||||||
Merger reserves | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Total equity | 26,414 | 26,414 | 26,414 | 26,414 | 26,414 | ||||||||||||||||||||||
Merger reserves | Reynolds American Inc. | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Total equity | £ 22,666 | ||||||||||||||||||||||||||
Merger reserves | Rothmans International B.V. Group | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Total equity | £ 3,748 | ||||||||||||||||||||||||||
Difference on exchange relating to Egypt | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
– reclassified and reported in profit for the year | 4 | ||||||||||||||||||||||||||
Difference on exchange relating to other entities | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
– reclassified and reported in profit for the year | 2 | 19 | 0 | ||||||||||||||||||||||||
Hedging reserve | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
(Loss) Gain reported in revenue | (16) | (29) | 16 | ||||||||||||||||||||||||
(Loss) gain reported in raw materials and consumables | (2) | 6 | 19 | ||||||||||||||||||||||||
Gain (loss) reported in operating expenses | (46) | (4) | (2) | ||||||||||||||||||||||||
Gain (loss) reported in net finance costs | 73 | 59 | 57 | ||||||||||||||||||||||||
Hedging reserve | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Increase decrease from share based payment transactions | 0 | 0 | 0 | ||||||||||||||||||||||||
Total equity | (327) | (363) | (327) | (363) | (504) | £ (346) | |||||||||||||||||||||
– reclassified and reported in profit for the year | 0 | 0 | |||||||||||||||||||||||||
Foreign exchange basis spread gain in respect of cost of hedging | 5 | 4 | 9 | ||||||||||||||||||||||||
Dividend recognised as appropriation from reserves | 0 | 0 | 0 | ||||||||||||||||||||||||
Perpetual hybrid bonds £m | |||||||||||||||||||||||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||||||||||||||||||||||
Total equity | £ 1,685 | £ 1,685 | £ 1,685 | £ 1,685 | £ 0 | ||||||||||||||||||||||
Perpetual hybrid bonds total | £ 1,703 |
Capital and reserves - Summar_3
Capital and reserves - Summary of Equity Attributed to Owners of The Parent - Movements in Other Reserves and Retained Earnings (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | £ 67,401 | £ 62,955 | £ 64,160 |
Comprehensive income and expense | |||
Profit for the year | 6,846 | 6,974 | 6,564 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 8,923 | 32 | (2,597) |
– reclassified and reported in profit for the year | 5 | 291 | 0 |
– net investment hedges - net fair value (losses)/gains on derivatives | (578) | 75 | (16) |
net investment hedges - differences on exchange on borrowings | (21) | 24 | (163) |
Cash flow hedges | |||
– net fair value gains/(losses) | 81 | 95 | (257) |
– reclassified and reported in profit for the year | 101 | 32 | 90 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | (17) | (32) | 44 |
Investments held at fair value | |||
– net fair value gains | 6 | 9 | 0 |
Associates – share of OCI, net of tax | 6 | (17) | (98) |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 316 | 382 | 105 |
– surplus recognition | (39) | (1) | 10 |
– tax on actuarial (gains)/losses in respect of subsidiaries | (95) | (82) | (26) |
Associates – share of OCI, net of tax | 19 | 14 | (34) |
Employee share options | |||
value of employee services | 81 | 76 | 88 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | (4,915) | (4,904) | (4,747) |
Purchase of own shares | |||
share buy-back programme | 2,012 | ||
Perpetual hybrid bonds | |||
coupons paid | (59) | (6) | |
tax on coupons paid | 11 | 1 | |
Non-controlling interests – acquisitions | (1) | (5) | |
Other movements | (4) | (4) | 4 |
Balance, ending | 75,710 | 67,401 | 62,955 |
held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | (80) | (82) | (17) |
Translation reserve | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | (6,427) | (6,830) | (3,974) |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 8,920 | 31 | (2,582) |
– reclassified and reported in profit for the year | (5) | (291) | |
– net investment hedges - net fair value (losses)/gains on derivatives | (578) | 75 | (16) |
net investment hedges - differences on exchange on borrowings | 21 | (24) | 163 |
Cash flow hedges | |||
– net fair value gains/(losses) | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | 0 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 0 | 0 | 0 |
Investments held at fair value | |||
– net fair value gains | 0 | 0 | |
Associates – share of OCI, net of tax | 6 | (18) | (95) |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 0 | 0 | 0 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 295 | ||
Other movements | 0 | 0 | 0 |
Balance, ending | 2,200 | (6,427) | (6,830) |
Translation reserve | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | 0 | 0 |
Translation reserve | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | 0 | ||
Hedging reserve | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | (363) | (504) | (346) |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | |
– net investment hedges - net fair value (losses)/gains on derivatives | 0 | 0 | 0 |
net investment hedges - differences on exchange on borrowings | 0 | 0 | 0 |
Cash flow hedges | |||
– net fair value gains/(losses) | 81 | 95 | (256) |
– reclassified and reported in profit for the year | (101) | (32) | (90) |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 17 | 32 | (44) |
Investments held at fair value | |||
– net fair value gains | 0 | 0 | |
Associates – share of OCI, net of tax | 0 | 1 | (3) |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 129 | (45) | 33 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 0 | ||
Other movements | 0 | 0 | 0 |
Balance, ending | (327) | (363) | (504) |
Hedging reserve | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | 0 | 0 |
Hedging reserve | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | 0 | ||
Fair value reserve | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | 6 | (18) | 13 |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | |
– net investment hedges - net fair value (losses)/gains on derivatives | 0 | 0 | 0 |
net investment hedges - differences on exchange on borrowings | 0 | 0 | 0 |
Cash flow hedges | |||
– net fair value gains/(losses) | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | 0 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 0 | 0 | 0 |
Investments held at fair value | |||
– net fair value gains | 6 | 9 | |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 18 | 15 | (31) |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 0 | 0 | 0 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 0 | ||
Other movements | 0 | 0 | 0 |
Balance, ending | 30 | 6 | (18) |
Fair value reserve | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | 0 | 0 |
Fair value reserve | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | 0 | ||
Revaluation reserve | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | 179 | 179 | 179 |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | |
– net investment hedges - net fair value (losses)/gains on derivatives | 0 | 0 | 0 |
net investment hedges - differences on exchange on borrowings | 0 | 0 | 0 |
Cash flow hedges | |||
– net fair value gains/(losses) | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | 0 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 0 | 0 | 0 |
Investments held at fair value | |||
– net fair value gains | 0 | 0 | |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 0 | 0 | 0 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 0 | ||
Other movements | 0 | 0 | 0 |
Balance, ending | 179 | 179 | 179 |
Revaluation reserve | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | 0 | 0 |
Revaluation reserve | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | 0 | ||
Other | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | 573 | 573 | 573 |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | |
– net investment hedges - net fair value (losses)/gains on derivatives | 0 | 0 | 0 |
net investment hedges - differences on exchange on borrowings | 0 | 0 | 0 |
Cash flow hedges | |||
– net fair value gains/(losses) | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | 0 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 0 | 0 | 0 |
Investments held at fair value | |||
– net fair value gains | 0 | 0 | |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 0 | 0 | 0 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 0 | ||
Other movements | 0 | 0 | 0 |
Balance, ending | 573 | 573 | 573 |
Other | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | 0 | 0 |
Other | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | 0 | ||
Total other reserves | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | (6,032) | (6,600) | (3,555) |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 8,920 | 31 | (2,582) |
– reclassified and reported in profit for the year | (5) | (291) | |
– net investment hedges - net fair value (losses)/gains on derivatives | (578) | 75 | (16) |
net investment hedges - differences on exchange on borrowings | 21 | (24) | 163 |
Cash flow hedges | |||
– net fair value gains/(losses) | 81 | 95 | (256) |
– reclassified and reported in profit for the year | (101) | (32) | (90) |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 17 | 32 | (44) |
Investments held at fair value | |||
– net fair value gains | 6 | 9 | |
Associates – share of OCI, net of tax | 6 | (17) | (98) |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 18 | 15 | (31) |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 129 | (45) | 33 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 0 | 0 | 0 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 295 | ||
Other movements | 0 | 0 | 0 |
Balance, ending | 2,655 | (6,032) | (6,600) |
Total other reserves | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | 0 | 0 |
Total other reserves | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | 0 | ||
Retained earnings - Treasury shares | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | (5,122) | (5,150) | (5,261) |
Comprehensive income and expense | |||
Profit for the year | 0 | 0 | 0 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | |
– net investment hedges - net fair value (losses)/gains on derivatives | 0 | 0 | 0 |
net investment hedges - differences on exchange on borrowings | 0 | 0 | 0 |
Cash flow hedges | |||
– net fair value gains/(losses) | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | 0 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 0 | 0 | 0 |
Investments held at fair value | |||
– net fair value gains | 0 | 0 | |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 0 | 0 | 0 |
– surplus recognition | 0 | 0 | 0 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 0 | 0 | 0 |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 0 | 0 | 0 |
Employee share options | |||
value of employee services | 0 | 0 | 0 |
treasury shares used for share option schemes | 14 | 13 | 9 |
Dividends and other appropriations | |||
– ordinary shares | 0 | 0 | 0 |
Perpetual hybrid bonds | |||
coupons paid | 0 | 0 | |
tax on coupons paid | 0 | 0 | |
Non-controlling interests – acquisitions | 0 | 0 | |
Reclassification of equity related to assets held-for-sale | 0 | ||
Other movements | 84 | 97 | 119 |
Balance, ending | (7,116) | (5,122) | (5,150) |
Retained earnings - Treasury shares | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 80 | 82 | 17 |
Retained earnings - Treasury shares | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | (2,012) | ||
Retained earnings - Other | |||
Disclosure Of Reserves Within Equity [Line Items] | |||
Balance, beginning | 49,334 | 47,191 | 45,495 |
Comprehensive income and expense | |||
Profit for the year | 6,666 | 6,801 | 6,400 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | |
– net investment hedges - net fair value (losses)/gains on derivatives | 0 | 0 | 0 |
net investment hedges - differences on exchange on borrowings | 0 | 0 | 0 |
Cash flow hedges | |||
– net fair value gains/(losses) | 0 | 0 | 0 |
– reclassified and reported in profit for the year | 0 | 0 | 0 |
– tax on net fair value (gains)/losses in respect of cash flow hedges | 0 | 0 | 0 |
Investments held at fair value | |||
– net fair value gains | 0 | 0 | |
Associates – share of OCI, net of tax | 0 | 0 | 0 |
Retirement benefit schemes | |||
– net actuarial gains/(losses) | 316 | 382 | 105 |
– surplus recognition | (39) | (1) | 10 |
– tax on actuarial (gains)/losses in respect of subsidiaries | 95 | 82 | 26 |
Associates – share of OCI, net of tax | 1 | (1) | (3) |
Other changes in equity | |||
Cash flow hedges reclassified and reported in total assets | 0 | 0 | 0 |
Employee share options | |||
value of employee services | 81 | 76 | 88 |
treasury shares used for share option schemes | (15) | (17) | (16) |
Dividends and other appropriations | |||
– ordinary shares | 4,915 | 4,904 | 4,747 |
Perpetual hybrid bonds | |||
coupons paid | (59) | (6) | |
tax on coupons paid | 11 | 1 | |
Non-controlling interests – acquisitions | (1) | (5) | |
Reclassification of equity related to assets held-for-sale | 0 | ||
Other movements | (88) | (101) | (115) |
Balance, ending | 51,197 | 49,334 | 47,191 |
Retained earnings - Other | held in employee share ownership trusts | |||
Purchase of own shares | |||
– held in employee share ownership trusts | 0 | £ 0 | £ 0 |
Retained earnings - Other | Held In Treasury | |||
Purchase of own shares | |||
share buy-back programme | £ 0 |
Borrowings - Schedule of Detail
Borrowings - Schedule of Detailed Information About Borrowings (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | £ 41,411 | £ 37,784 |
Commercial paper | 27 | |
Other loans | 875 | 500 |
Bank loans | 203 | 313 |
Bank overdrafts | 106 | 346 |
Lease liabilities | 517 | 446 |
Borrowings | £ 43,139 | 39,658 |
Minimum | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 1.70% | |
Eurobonds One | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | £ 7,149 | 7,316 |
Eurobonds One | Minimum | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 0.90% | |
Eurobonds One | Maximum | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 3.10% | |
Eurobonds Three | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | £ 3,884 | 4,086 |
Eurobonds Three | Minimum | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 2.10% | |
Eurobonds Three | Maximum | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 7.30% | |
Eurobonds Four | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 1.40% | |
Bonds and notes | £ 226 | 203 |
Bonds Issued One | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | 30,152 | 25,625 |
Bonds Issued One | Floating interest rate | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | £ 0 | £ 554 |
Borrowings, adjustment to interest rate basis | 0.88% | |
Bonds Issued One | Maximum | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 8.10% | |
Bonds Issued Two | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | £ 0 | £ 554 |
Bonds Issued Two | London Interbank Offered Rate | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, adjustment to interest rate basis | 0.88% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Other loans | £ 875 | £ 500 |
Interest payable | 524 | 460 |
Borrowings | 43,139 | 39,658 |
Borrowings subject to fair value hedges, Increase in amortised cost | (355) | 101 |
Undrawn committed borrowing facilities | 7,828 | 7,850 |
Fair value, accrued interest and other | 84 | 11 |
Within one year | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,413 | 3,992 |
Undrawn committed borrowing facilities | 4,828 | 4,850 |
Between three and four years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 3,013 | 4,090 |
Undrawn committed borrowing facilities | 350 | 150 |
Between four and five years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,077 | 2,739 |
Undrawn committed borrowing facilities | 2,500 | 2,850 |
2024 and thereafter | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,406 | 3,853 |
Undrawn committed borrowing facilities | 150 | |
Property, Plant and Equipment, Inventory and Receivables | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowing amounts secured on group assets | 9 | 10 |
At Fair Value | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 37,170 | 40,557 |
At Fair Value | Quoted Market Prices | Level 1 | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 35,440 | 38,683 |
At Fair Value | Discounted Cash Flow | Level 3 | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 1,730 | 1,874 |
Borrowings subject to fair value hedges | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 9,223 | 9,197 |
Bilateral facilities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Other loans | 875 | 500 |
Lease liabilities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Increase in lease liabilities | 218 | 147 |
Current investments held at fair value | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Increase in current investments held at fair value | £ (22) | £ (7) |
Borrowings - Schedule of Deta_2
Borrowings - Schedule of Detailed Information About Repayment of Borrowings (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | £ 43,139 | £ 39,658 |
Lease liabilities | 517 | 446 |
Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 60,303 | 54,604 |
Lease liabilities | 599 | 526 |
Within one year | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,413 | 3,992 |
Lease liabilities | 142 | 126 |
Within one year | Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,426 | 4,860 |
Lease liabilities | 161 | 142 |
Later than one year and not later than two years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,253 | 2,484 |
Lease liabilities | 109 | 93 |
Later than one year and not later than two years | Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,763 | 3,740 |
Lease liabilities | 122 | 106 |
2024 and thereafter | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,406 | 3,853 |
Lease liabilities | 76 | 66 |
2024 and thereafter | Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,673 | 5,092 |
Lease liabilities | 85 | 76 |
Between three and four years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 3,013 | 4,090 |
Lease liabilities | 58 | 49 |
Between three and four years | Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,141 | 5,034 |
Lease liabilities | 65 | 56 |
Between four and five years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,077 | 2,739 |
Lease liabilities | 50 | 38 |
Between four and five years | Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,494 | 3,675 |
Lease liabilities | 54 | 43 |
Beyond five years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 22,977 | 22,500 |
Lease liabilities | 82 | 74 |
Beyond five years | Contractual gross maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 33,806 | 32,203 |
Lease liabilities | £ 112 | £ 103 |
Borrowings - Schedule of Analys
Borrowings - Schedule of Analysis of Borrowings by Currency (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | £ 43,139 | £ 39,658 |
Borrowings net, derivative instruments adjustment | 42,966 | 39,456 |
Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (179) | (204) |
– forward foreign currency contracts | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 6 | 2 |
Functional currency | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 33,438 | 30,363 |
Borrowings net, derivative instruments adjustment | 35,754 | 32,558 |
Functional currency | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 2,356 | 2,219 |
Functional currency | – forward foreign currency contracts | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (40) | (24) |
U.S. dollar | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 3,383 | 2,837 |
Borrowings net, derivative instruments adjustment | 2,385 | 2,373 |
U.S. dollar | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | 0 |
U.S. dollar | – forward foreign currency contracts | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (998) | (464) |
UK sterling | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 452 | 453 |
Borrowings net, derivative instruments adjustment | 2 | 3 |
UK sterling | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (450) | (450) |
UK sterling | – forward foreign currency contracts | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | 0 |
Euro | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,579 | 5,775 |
Borrowings net, derivative instruments adjustment | 4,084 | 3,860 |
Euro | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (2,085) | (1,973) |
Euro | – forward foreign currency contracts | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 590 | 58 |
Other currencies | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 287 | 230 |
Borrowings net, derivative instruments adjustment | 741 | 662 |
Other currencies | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | 0 |
Other currencies | – forward foreign currency contracts | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | £ 454 | £ 432 |
Borrowings - Schedule of Anal_2
Borrowings - Schedule of Analysis of Borrowings by Interest Rate Changes (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | £ 43,139 | £ 39,658 |
Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (179) | (204) |
Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 42,960 | 39,454 |
Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | 0 |
Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (179) | (204) |
Within 1 year | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | 4,398 | 3,999 |
Within 1 year | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 8,978 | 8,757 |
Within 1 year | Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 4,657 | 4,192 |
Within 1 year | Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (77) | 566 |
Between 1-2 years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | 4,246 | 2,477 |
Between 1-2 years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 3,746 | 1,825 |
Between 1-2 years | Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (500) | 0 |
Between 1-2 years | Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | (652) |
Between 2-3 years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | 4,407 | 3,853 |
Between 2-3 years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 3,196 | 3,353 |
Between 2-3 years | Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (1,247) | (500) |
Between 2-3 years | Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 36 | 0 |
Between 3-4 years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | 3,013 | 4,090 |
Between 3-4 years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 3,013 | 2,964 |
Between 3-4 years | Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | (1,107) |
Between 3-4 years | Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | (19) |
Between 4-5 years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | 4,077 | 2,739 |
Between 4-5 years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 1,029 | 2,739 |
Between 4-5 years | Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (2,910) | 0 |
Between 4-5 years | Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (138) | 0 |
Beyond 5 years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Repriced Borrowings | 22,998 | 22,500 |
Beyond 5 years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 22,998 | 19,816 |
Beyond 5 years | Interest Rate Risk | interest rate swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 0 | (2,585) |
Beyond 5 years | Interest Rate Risk | Cross-currency swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | £ 0 | £ (99) |
Borrowings - Schedule of Anal_3
Borrowings - Schedule of Analysis of Net Debt Movements (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | £ 36,302 | £ 40,241 |
Cash flows per net debt statement | (487) | (4,074) |
Foreign exchange | 3,030 | 124 |
Fair value, accrued interest and other | 84 | 11 |
Held for Sale | 352 | 0 |
Net debt, Closing balance | 39,281 | 36,302 |
Reynolds American Inc. | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Purchase price adjustments relating to acquisition | 798 | 754 |
Borrowings (excluding lease liabilities) | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | 39,212 | 43,493 |
Cash flows per net debt statement | (17) | (3,768) |
Foreign exchange | 3,881 | (387) |
Fair value, accrued interest and other | (454) | (126) |
Held for Sale | 0 | 0 |
Net debt, Closing balance | 42,622 | 39,212 |
Lease liabilities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | 446 | 475 |
Cash flows per net debt statement | (161) | (154) |
Foreign exchange | 30 | (22) |
Held for Sale | (16) | 0 |
Net debt, Closing balance | 517 | 446 |
Derivatives in respect of net debt | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | (91) | (346) |
Cash flows per net debt statement | 348 | (22) |
Foreign exchange | (435) | 277 |
Fair value, accrued interest and other | 345 | 0 |
Held for Sale | 0 | 0 |
Net debt, Closing balance | 167 | (91) |
Cash and cash equivalents | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | (2,809) | (3,139) |
Cash flows per net debt statement | (571) | 75 |
Foreign exchange | (431) | 258 |
Fair value, accrued interest and other | (3) | (3) |
Held for Sale | 368 | 0 |
Net debt, Closing balance | (3,446) | (2,809) |
Current investments held at fair value | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | (456) | (242) |
Cash flows per net debt statement | (86) | (205) |
Foreign exchange | (15) | (2) |
Held for Sale | 0 | 0 |
Net debt, Closing balance | £ (579) | £ (456) |
Borrowings - Schedule of Anal_4
Borrowings - Schedule of Analysis of Net Debt Movements Along with Reconciliation to the Financing Activities in the Group Cash Flow Statement (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | |||
Cash flows per net debt statement | £ (487) | £ (4,074) | |
Non-financing cash flows included in net debt | 897 | 33 | |
Interest paid | (1,578) | (1,479) | £ (1,737) |
Interest element of lease liabilities | (25) | (23) | (26) |
Remaining cash flows relating to derivative financial instruments | (465) | 251 | |
Purchases of own shares held in employee share ownership trusts | (80) | (82) | (18) |
Purchase of own shares | (2,012) | 0 | 0 |
Proceeds from issue of perpetual hybrid bonds | 0 | 1,681 | 0 |
Coupon paid on perpetual hybrid bonds | (60) | (6) | 0 |
Dividends paid to owners of the parent | (4,915) | (4,904) | (4,745) |
Capital injection from and purchases of non-controlling interests | (1) | 1 | 17 |
Dividends paid to non-controlling interests | (158) | (150) | (136) |
Other | 6 | 3 | 2 |
Net cash used in financing activities | £ (8,878) | £ (8,749) | £ (7,897) |
Provisions for liabilities - Su
Provisions for liabilities - Summary of Provisions Excluding Post-Retirement Benefits (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | £ 853 | £ 985 |
Differences on exchange | 26 | (39) |
Provided in respect of the year | 845 | 258 |
Transferred to liabilities associated with assets held for sale | (26) | |
Utilised during the year | (177) | (351) |
Ending balance | 1,521 | 853 |
– current | 1,087 | 461 |
– non-current | 434 | 392 |
Provisions for liabilities | 1,521 | 853 |
- in respect of MSA litigation (Texas, Minnesota, Mississippi) | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (199) | |
- in respect of other | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (152) | |
Restructuring of existing businesses | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 179 | 241 |
Differences on exchange | 9 | (13) |
Provided in respect of the year | 198 | 32 |
Transferred to liabilities associated with assets held for sale | (20) | |
Utilised during the year | (69) | (81) |
Ending balance | 297 | 179 |
– current | 240 | 123 |
– non-current | 57 | 56 |
Provisions for liabilities | 297 | 179 |
Reversals of unused provisions | 35 | 20 |
Restructuring of existing businesses | - in respect of MSA litigation (Texas, Minnesota, Mississippi) | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | 0 | |
Restructuring of existing businesses | - in respect of other | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (81) | |
Employee-related benefits | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 41 | 38 |
Differences on exchange | 2 | (3) |
Provided in respect of the year | 10 | 27 |
Transferred to liabilities associated with assets held for sale | 0 | |
Utilised during the year | (9) | (21) |
Ending balance | 44 | 41 |
– current | 14 | 14 |
– non-current | 30 | 27 |
Provisions for liabilities | 44 | 41 |
Reversals of unused provisions | 10 | 1 |
Employee-related benefits | - in respect of MSA litigation (Texas, Minnesota, Mississippi) | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | 0 | |
Employee-related benefits | - in respect of other | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (21) | |
Fox River | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 62 | 70 |
Differences on exchange | 0 | 0 |
Provided in respect of the year | 0 | 0 |
Transferred to liabilities associated with assets held for sale | 0 | |
Utilised during the year | (8) | (8) |
Ending balance | 54 | 62 |
– current | 10 | 8 |
– non-current | 44 | 54 |
Provisions for liabilities | 54 | 62 |
Fox River | - in respect of MSA litigation (Texas, Minnesota, Mississippi) | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | 0 | |
Fox River | - in respect of other | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (8) | |
Other provisions | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 571 | 636 |
Differences on exchange | 15 | (23) |
Provided in respect of the year | 187 | 199 |
Transferred to liabilities associated with assets held for sale | (6) | |
Utilised during the year | (91) | (241) |
Ending balance | 676 | 571 |
– current | 373 | 316 |
– non-current | 303 | 255 |
Provisions for liabilities | 676 | 571 |
Reversals of unused provisions | 225 | 147 |
Other provisions | DOJ and OFAC investigations £m | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 0 | |
Differences on exchange | 0 | |
Provided in respect of the year | 450 | |
Transferred to liabilities associated with assets held for sale | 0 | |
Utilised during the year | 0 | |
Ending balance | 450 | 0 |
– current | 450 | |
– non-current | 0 | |
Provisions for liabilities | 450 | 0 |
Other provisions | - in respect of MSA litigation (Texas, Minnesota, Mississippi) | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (199) | |
Other provisions | - in respect of other | ||
Disclosure Of Other Provisions [Line Items] | ||
Utilised during the year | (42) | |
Trade and other payables | ||
Disclosure Of Other Provisions [Line Items] | ||
Reversals of unused provisions | £ 74 | £ 34 |
Provisions for liabilities - Ad
Provisions for liabilities - Additional Information (Details) £ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2011 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 GBP (£) | Dec. 31, 2019 CAD ($) | Mar. 01, 2019 CAD ($) | |
Disclosure Of Other Provisions [Line Items] | ||||||||
Other provisions for liabilities | £ 434 | £ 392 | ||||||
Provision for interest | £ 183 | |||||||
Percentage of base rate charged to net finance costs | 2% | |||||||
Provision for expected liability | £ 1,521 | 853 | £ 985 | |||||
Canada | Imperial Tobacco Canada | ||||||||
Disclosure Of Other Provisions [Line Items] | ||||||||
Reducing payments under Quebec Class Action | $ | $ 9,200 | |||||||
Deposit amount to escrow account under Quebec Class Action | $ | $ 1,100 | |||||||
ITG Brands, LLC MSA Litigation Agreements | Texas, Minnesota and Mississippi | ||||||||
Disclosure Of Other Provisions [Line Items] | ||||||||
Provision for expected liability | 212 | $ 272 | ||||||
Quebec class actions | ||||||||
Disclosure Of Other Provisions [Line Items] | ||||||||
Provision for expected liability | £ 436 | $ 758 | ||||||
Restructuring of existing businesses | ||||||||
Disclosure Of Other Provisions [Line Items] | ||||||||
Other provisions for liabilities | £ 57 | 56 | ||||||
Estimated unwind percentage of noncurrent provisions relates to termination payments | 97% | |||||||
Provision for expected liability | £ 297 | 179 | 241 | |||||
Employee-related benefits | ||||||||
Disclosure Of Other Provisions [Line Items] | ||||||||
Other provisions for liabilities | £ 30 | 27 | ||||||
Estimated unwind percentage of noncurrent provisions | 8,100% | |||||||
Provision for expected liability | £ 44 | 41 | 38 | |||||
Fox River | ||||||||
Disclosure Of Other Provisions [Line Items] | ||||||||
Other provisions for liabilities | 44 | 54 | ||||||
Charges in respect of DOJ investigation | £ 274 | |||||||
Payments for funding agreement | 1 | 2 | ||||||
Legal costs incurred | 7 | 6 | ||||||
Provision for expected liability | £ 54 | £ 62 | £ 70 | |||||
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, 2022 | Dec. 31, 2021 |
Trade and other payables [abstract] | ||
Trade payables | £ 4,055 | £ 3,923 |
Duty, excise and other taxes | 3,104 | 3,148 |
Accrued charges and deferred income | 2,713 | 2,095 |
FII GLO (note 10(b)) | 913 | 963 |
Social security and other taxation | 61 | 55 |
Sundry payables | 547 | 375 |
Trade and other payables | 11,393 | 10,559 |
Trade and other payables, Current | 10,449 | 9,577 |
Trade and other payables, Non-current | £ 944 | £ 982 |
Trade and other payables - Addi
Trade and other payables - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2022 GBP (£) | |
Trade And Other Payables [Line Items] | |||
Cash collected debt factoring arrangements | £ 375 | £ 547 | |
Trade payables | 3,923 | 4,055 | |
Leaf payables | 156 | 161 | |
Deferred income | 1 | 20 | |
Interest payable | 58 | 66 | |
FII GLO (note 10(b)) | £ 963 | 913 | |
Percentage of trade and other payables denominated in other than the functional currency of the subsidiary | 7% | 6% | |
Competition investigations | |||
Trade And Other Payables [Line Items] | |||
Penalty due | $ | $ 110 | ||
Factoring of receivables | |||
Trade And Other Payables [Line Items] | |||
Cash collected debt factoring arrangements | £ 137 | 119 | |
Supply chain financing arrangements | |||
Trade And Other Payables [Line Items] | |||
Trade payables | £ 251 | £ 257 |
Financial instruments and ris_3
Financial instruments and risk management - Management of Financial Risks, Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
Proportion of average cost of debt | 400% | 350% |
Financial instruments and ris_4
Financial instruments and risk management - Liquidity Risk, Additional Information (Details) € in Millions, £ in Millions, SFr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Oct. 19, 2022 USD ($) | Mar. 16, 2022 USD ($) tranche | Feb. 28, 2022 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Jan. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Aug. 15, 2022 USD ($) | Jun. 29, 2022 GBP (£) | Jun. 07, 2022 USD ($) | May 23, 2022 GBP (£) | Nov. 30, 2021 EUR (€) | Sep. 30, 2021 GBP (£) | Sep. 30, 2021 EUR (€) | Sep. 30, 2021 CHF (SFr) | Aug. 31, 2021 EUR (€) | Jul. 31, 2021 GBP (£) | Jun. 30, 2021 GBP (£) | Feb. 28, 2021 GBP (£) | Jul. 31, 2020 GBP (£) | |
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Cash and cash equivalents | £ 3,446 | £ 2,809 | |||||||||||||||||||
Commercial paper | 27 | ||||||||||||||||||||
Current borrowings | 4,413 | 3,992 | |||||||||||||||||||
Proceeds from the issue of perpetual hybrid bonds, net of issuance costs | £ 0 | £ 1,681 | £ 0 | ||||||||||||||||||
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 10 months 24 days | 10 years 1 month 6 days | 9 years 10 months 24 days | ||||||||||||||||||
Peak maturity of centrally managed debt maturing in a rolling 12-month period | 1,860% | 1,860% | 1,860% | ||||||||||||||||||
Commercial paper issuance facility amount | £ 3,000 | $ 4,000 | |||||||||||||||||||
Commercial paper | 27 | £ 269 | |||||||||||||||||||
Revolving credit facility | 5,690 | 5,850 | |||||||||||||||||||
One year option exercised | one-year | ||||||||||||||||||||
Proceeds from the issue of perpetual hybrid bonds, net of issuance costs | $ | $ 600 | $ 2,500 | |||||||||||||||||||
Number of tranches | tranche | 2 | ||||||||||||||||||||
Amount repaid at maturity | £ 180 | $ 419 | £ 600 | € 500 | SFr 400 | € 1,100 | £ 500 | £ 650 | |||||||||||||
Repayment of remaining term loan | £ 1,429 | £ 500 | |||||||||||||||||||
Amount of term loan repaid | £ 1,929 | ||||||||||||||||||||
Issuance of perpetual hybrid bonds | € | € 2,000 | ||||||||||||||||||||
Liquidity Risk | 364-day Tranche | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Revolving credit facility | £ 2,850 | ||||||||||||||||||||
Period of tranche | 364 days | ||||||||||||||||||||
Liquidity Risk | March 2027 | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Revolving credit facility | £ 2,500 | ||||||||||||||||||||
Period of tranche | 5 years | ||||||||||||||||||||
Liquidity Risk | Until March 2025 | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Remaining amount available | £ 3,000 | ||||||||||||||||||||
Liquidity Risk | From March 2025 To March 2026 | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Remaining amount available | 2,850 | ||||||||||||||||||||
Liquidity Risk | Bilateral facilities | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Remaining amount available | 2,100 | ||||||||||||||||||||
Current borrowings | 3,000 | 2,500 | |||||||||||||||||||
Amount withdrawn and outstanding | 875 | 500 | |||||||||||||||||||
Liquidity Risk | Bond repaid, August 2022 one | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Amount repaid at maturity | $ | $ 750 | ||||||||||||||||||||
Liquidity Risk | Bond repaid, August 2022 two | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Amount repaid at maturity | $ | $ 601 | ||||||||||||||||||||
Liquidity Risk | Bond repaid, January 2023 | Repayments of borrowings | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Amount repaid at maturity | € | € 750 | ||||||||||||||||||||
Liquidity Risk | March Two Thousand And Twenty Three | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Revolving credit facility | £ 2,700 | ||||||||||||||||||||
Liquidity Risk | Money Market fund | |||||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||||
Cash and cash equivalents | £ 0 | £ 0 | |||||||||||||||||||
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% |
Financial instruments and ris_5
Financial instruments and risk management - Currency Risk, Additional Information (Details) - Currency Risk - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||
Currency risk sensitivity factor | 10% | ||
Impact of 10% strengthening of functional currencies against non-functional currencies on pre-tax profit | £ 49 | £ 53 | £ 61 |
Impact of 10% strengthening of functional currencies against non-functional currencies on items recognised directly in other comprehensive income | 445 | 144 | 57 |
Impact of 10% weakening of functional currencies against non-functional currencies on pre-tax profit | 60 | 65 | 74 |
Impact of 10% weakening of functional currencies against non-functional currencies on items recognised directly in other comprehensive incomee | £ 543 | £ 177 | £ 70 |
Rest of Group | |||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||
Percentage of gross debt after taking into account derivative contracts | 400% | 600% | |
U.S. dollar | |||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||
Percentage of gross debt after taking into account derivative contracts | 7,100% | 6,800% | |
Euro | |||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||
Percentage of gross debt after taking into account derivative contracts | 1,300% | 1,300% | |
UK Sterling | |||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||
Percentage of gross debt after taking into account derivative contracts | 1,200% | 1,300% |
Financial instruments and ris_6
Financial instruments and risk management - Interest Rate Risk, Additional Information (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2022 USD ($) | Jan. 31, 2022 GBP (£) Derivative | Jan. 31, 2022 EUR (€) Derivative | Dec. 31, 2021 USD ($) | |
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||
Ratio of floating rate borrowings after impact of derivatives | 0.18 | 0.12 | 0.18 | ||||
Ratio of fixed rate borrowings after impact of derivatives | 0.82 | 0.88 | 0.82 | ||||
Ratio on net debt basis of floating rate borrowings after offsetting liquid assets | 0.10 | 0.03 | 0.10 | ||||
Ratio on net debt basis of fixed rate borrowings after offsetting liquid assets | 0.90 | 0.97 | 0.90 | ||||
Ratio of floating rate borrowings, excluding cash and other liquid assets in Canada | 0.13 | 0.07 | 0.13 | ||||
Ratio of fixed rate borrowings, excluding cash and other liquid assets in Canada | 0.87 | 0.93 | 0.87 | ||||
Interest Rate Risk | |||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||
Decrease in pre-tax profit based on 100 basis point increase in interest rates | £ 50 | £ 44 | £ 31 | ||||
Increase in pre-tax profit based on 100 basis point decrease in interest rates, or less | £ 50 | 47 | £ 29 | ||||
Nominal value of floating rate bond | £ 554 | $ 0 | $ 750 | ||||
Number of impacted derivatives | Derivative | 4 | 4 | |||||
Nominal value | £ 672 | € 800 | |||||
Fixed Rate | Interest Rate Risk | |||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||
Target for floating to fixed rate debt | 50% |
Financial instruments and ris_7
Financial instruments and risk management - Credit Risk, Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Short Term Credit Facility | ||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||
Maximum exposure to credit risk | £ 1 | £ 1 |
Leaf Supply Arrangements | ||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||
Maximum exposure to credit risk | £ 90 | £ 89 |
Financial instruments and ris_8
Financial instruments and risk management - Summary of Assets and Liabilities Measured at Fair Value (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Investment held at fair value | £ 700 | £ 506 | £ 264 |
Assets | 561 | 425 | |
Assets at fair value | 1,261 | 931 | |
Liabilities | 929 | 314 | |
Liabilities at fair value | 929 | 314 | |
Level 1 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Investment held at fair value | 514 | 405 | |
Assets at fair value | 514 | 405 | |
Liabilities at fair value | 0 | 0 | |
Level 2 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Investment held at fair value | 0 | 0 | |
Assets at fair value | 561 | 425 | |
Liabilities at fair value | 929 | 314 | |
Level 3 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Investment held at fair value | 186 | 101 | |
Assets at fair value | 186 | 101 | |
Liabilities at fair value | 0 | 0 | |
interest rate swaps | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 43 | 33 | |
Liabilities | 450 | 36 | |
interest rate swaps | Level 1 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
interest rate swaps | Level 2 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 43 | 33 | |
Liabilities | 450 | 36 | |
interest rate swaps | Level 3 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
– cross-currency swaps | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 254 | 221 | |
Liabilities | 121 | 35 | |
– cross-currency swaps | Level 1 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
– cross-currency swaps | Level 2 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 254 | 221 | |
Liabilities | 121 | 35 | |
– cross-currency swaps | Level 3 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
– forward foreign currency contracts | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 264 | 171 | |
Liabilities | 358 | 243 | |
– forward foreign currency contracts | Level 1 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
– forward foreign currency contracts | Level 2 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 264 | 171 | |
Liabilities | 358 | 243 | |
– forward foreign currency contracts | Level 3 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | £ 0 | £ 0 |
Financial instruments and ris_9
Financial instruments and risk management - Summary of Derivative Financial Asset and Liabilities Offsetting Arrangements (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items] | ||
Amount presented in the Group balance sheet, assets | £ 561 | £ 425 |
Related amounts not offset in the Group balance sheet | (405) | (184) |
Amount presented in the Group balance sheet, liabilities | (929) | (314) |
Related amounts not offset in the Group balance sheet | 405 | 184 |
Amount presented in the Group balance sheet | (368) | 111 |
Net amount | (368) | 111 |
Financial assets | ||
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items] | ||
Net amount | 156 | 241 |
Financial liabilities | ||
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items] | ||
Net amount | £ (524) | £ (130) |
Financial instruments and ri_10
Financial instruments and risk management - Schedule of Detailed Information About Hedged Items by Risk Category (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value hedges | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Carrying amount of the hedged item | £ 9,223 | £ 9,197 |
Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item | £ (355) | £ 101 |
Line item in the statement of financial position where the hedged item is included | Borrowings | Borrowings |
Changes in fair value used for calculating hedge ineffectiveness | £ 399 | £ 87 |
Cash flow hedges | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Carrying amount of the hedged item | £ 1,824 | £ 2,132 |
Line item in the statement of financial position where the hedged item is included | Borrowings | Borrowings |
Changes in fair value used for calculating hedge ineffectiveness | £ (55) | £ (69) |
Cash flow hedge reserve | £ (464) | £ (538) |
Financial instruments and ri_11
Financial instruments and risk management - Fair Value Estimation, Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||||
Total equity | £ 75,710 | £ 67,401 | £ 62,955 | £ 64,160 |
Hedging reserve | ||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||||
Total equity | (327) | (363) | £ (504) | £ (346) |
Cash flow hedges | ||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||||
Cash flow hedge reserve | (464) | (538) | ||
Cash flow hedges | Currency Risk | ||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||||
Cash flow hedge reserve | £ (99) | £ 116 | ||
Long-term Borrowings | Net investment hedges (non-derivative related) | ||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | ||||
Nominal amount of hedging instrument | 389 | 368 | ||
Changes in fair value used for calculating hedge ineffectiveness | £ 21 | £ (24) |
Changes in the Group- Acquisiti
Changes in the Group- Acquisitions (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 12, 2020 | Sep. 30, 2019 | |
Eastern Tobacco Company | |||
Disclosure Of Business Combinations [Line Items] | |||
Acquisition percentage | 100% | ||
Fair value total | £ 50 | ||
Goodwill | 36 | ||
Intangibles | 39 | ||
Cash and cash equivalents recognised on acquisition | £ 96 | ||
Twisp Proprietary Limited | |||
Disclosure Of Business Combinations [Line Items] | |||
Fair value total | £ 25 | ||
Goodwill | 12 | ||
Intangibles | 15 | ||
Contingent consideration recognised as of acquisition date | £ 6 | ||
Consideration paid (received) | £ 3 |
Changes in the Group- Non-contr
Changes in the Group- Non-controlling Interests (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Business Combinations [Line Items] | |||
Percentage of additional voting equity interests acquired | 0.20% | ||
Hrvatski Duhani D D Tobacco Leaf Processing | |||
Disclosure Of Business Combinations [Line Items] | |||
NCI percentage acquired | 2.70% | ||
Payment to acquire NCI | £ 1 | £ 1 | |
Brascuba Cigarrillos S.A | |||
Disclosure Of Business Combinations [Line Items] | |||
Payment to match contributions made by non-controlling interests | 6 | £ 17 | |
Group's Indonesian subsidiary | |||
Disclosure Of Business Combinations [Line Items] | |||
Payment to acquire NCI | £ 4 | ||
Percentage of additional voting equity interests acquired | 0.20% |
Changes in the Group - Other Tr
Changes in the Group - Other Transactions (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 GBP (£) | Dec. 31, 2022 GBP (£) | Nov. 30, 2022 GBP (£) | Sep. 26, 2022 GBP (£) | Dec. 31, 2021 CAD ($) | Mar. 11, 2021 GBP (£) director | Dec. 31, 2020 GBP (£) | |
Disclosure Of Business Combinations [Line Items] | |||||||
Investments held at fair value | £ 50 | £ 121 | |||||
Charlotte's Web Holdings, Inc. | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Investments held at fair value | £ 48 | ||||||
Investment term | 7 years | ||||||
Potential proportion ownership interest | 19.90% | ||||||
Organigram Inc. | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Acquisition percentage | 19.40% | 19.90% | |||||
Fair value total | £ 129 | ||||||
Intangibles | 49 | ||||||
Goodwill | £ 30 | ||||||
Purchase of interests in investments accounted for using equity method | £ 4 | ||||||
Organigram Inc. | Edibles Infusions Corporation | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Fair value total | $ | $ 22 | ||||||
Organigram Inc. | Laurentian Organic Inc | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Fair value total | $ | $ 36 | ||||||
Sanity Group GmbH | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Acquisition percentage | 16% | ||||||
Fair value total | £ 32 | ||||||
Intangibles | 4 | ||||||
Goodwill | £ 28 | ||||||
Steady State LLC | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Fair value total | £ 4 | ||||||
Canada | Organigram Inc. | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Acquisition percentage | 19.90% | ||||||
Number of directors entitled to be appointed in the acquiree | director | 2 | ||||||
Ownership interest in associates | 18.80% | ||||||
Uzbekistan | Samfruit | |||||||
Disclosure Of Business Combinations [Line Items] | |||||||
Acquisition percentage | 4% | 2.80% | 4% | 28.40% | |||
Fair value total | £ 1 | £ 1 | £ 5 | ||||
Ownership interest in associates | 45.40% |
Changes in the Group - Assets H
Changes in the Group - Assets Held For Sale and Business Disposals - Narrative (Details) - GBP (£) £ in Millions | 4 Months Ended | 12 Months Ended | ||||
Jun. 25, 2021 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Business Combinations [Line Items] | ||||||
Foreign exchange gain loss reclassified from other comprehensive income on disposal of business | £ (5) | £ (291) | £ 0 | |||
Liabilities classified as held for sale | 428 | 0 | ||||
Discontinued operations | ||||||
Disclosure Of Business Combinations [Line Items] | ||||||
Assets classified as held for sale | 1,321 | |||||
BAT Russia | Forecast | ||||||
Disclosure Of Business Combinations [Line Items] | ||||||
Foreign exchange gain loss reclassified from other comprehensive income on disposal of business | £ 295 | |||||
BAT Russia | Discontinued operations | ||||||
Disclosure Of Business Combinations [Line Items] | ||||||
Assets reclassified as held-for-sale | £ 387 | 281 | ||||
Trade and other receivables classified as held for sale | 696 | 474 | ||||
Cash and cash equivalents classified as part of disposal group held for sale | 240 | 368 | ||||
Inventory classified as held for sale | 144 | 181 | ||||
Borrowings classified as held for sale | 11 | 16 | ||||
Trade creditors classified as held for sale | 528 | 412 | ||||
Impairment charges and associated costs | £ 957 | 554 | ||||
BAT Pars Company PJSC | ||||||
Disclosure Of Business Combinations [Line Items] | ||||||
Foreign exchange gain loss reclassified from other comprehensive income on disposal of business | 272 | |||||
Disposal group discontinued operation discounted consideration receivable | 56 | |||||
Cash outflow from investing activities discontinuing operations | 98 | |||||
Unwinding of discount | 6 | 2 | ||||
BAT Pars Company PJSC | Adjusting items which have been adjusted within net finance costs | ||||||
Disclosure Of Business Combinations [Line Items] | ||||||
Investments pledged | £ 24 | |||||
Investments recovered | £ 17 | |||||
BAT Pars Company PJSC | Discontinued operations | ||||||
Disclosure Of Business Combinations [Line Items] | ||||||
Assets reclassified as held-for-sale | £ 14 | |||||
Cash and cash equivalents classified as part of disposal group held for sale | 98 | |||||
Inventory classified as held for sale | 38 | |||||
Trade creditors classified as held for sale | 10 | |||||
Impairment charges and associated costs | 88 | |||||
Assets classified as held for sale | 152 | |||||
Liabilities classified as held for sale | 24 | |||||
Corporation tax payable classified as held for sale | £ 8 |
Changes in the Group - Assets_2
Changes in the Group - Assets Held For Sale and Business Disposals (Details) - GBP (£) £ in Millions | 10 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Business Combinations [Line Items] | |||
Impairment of non-current assets held-for-sale - Russia and Belarus | £ (319) | £ (54) | |
Assets classified as held-for-sale | £ 767 | 767 | £ 13 |
Discontinued operations | |||
Disclosure Of Business Combinations [Line Items] | |||
Total assets held for sale | 1,321 | 1,321 | |
Assets held for sale, net of impairment on non current assets | 1,040 | 1,040 | |
Assets classified as held-for-sale | 767 | 767 | |
BAT Russia | Discontinued operations | |||
Disclosure Of Business Combinations [Line Items] | |||
Impairment of non-current assets held-for-sale - Russia and Belarus | (281) | ||
Impairment loss recognised in profit or loss | (273) | ||
Territories Other Than Russia And Belarus | Discontinued operations | |||
Disclosure Of Business Combinations [Line Items] | |||
Total assets held for sale | £ 15 | £ 15 |
Share-based payments - Addition
Share-based payments - Additional Information (Details) | 12 Months Ended | 60 Months Ended | ||||||
Dec. 31, 2022 GBP (£) shares £ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares £ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares £ / shares | Dec. 31, 2020 shares $ / shares | Dec. 31, 2019 | Dec. 31, 2021 shares | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Share price volatility calculation period | 5 years | |||||||
Long Term Incentive Plan | Performance Share Plan (PSP) | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Options exercisable period | 3 years | |||||||
Expiration period | 10 years | |||||||
Long Term Incentive Plan | Performance Share Plan (PSP) | Earnings Per Share | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Percentage of grant | 30% | 40% | 40% | 40% | 40% | 40% | ||
Long Term Incentive Plan | Performance Share Plan (PSP) | Operating Cash Flow | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Percentage of grant | 20% | 20% | 20% | 20% | 20% | 20% | ||
Long Term Incentive Plan | Performance Share Plan (PSP) | Total Shareholder Return | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Percentage of grant | 20% | 20% | 20% | 20% | 20% | |||
Long Term Incentive Plan | Performance Share Plan (PSP) | Net Turnover | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Percentage of grant | 15% | 20% | 20% | 20% | 20% | 20% | ||
Long Term Incentive Plan | Performance Share Plan (PSP) | New Categories Revenue Growth | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Percentage of grant | 15% | |||||||
Long Term Incentive Plan | Performance Share Plan (PSP) | Total Shareholder Return | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Percentage of grant | 20% | |||||||
Long Term Incentive Plan | Performance Share Plan (PSP) | Executive director | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Options exercisable period | 5 years | |||||||
Long Term Incentive Plan | Restricted Share Plan (RSP) | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Options exercisable period | 3 years | |||||||
Deferred Share Bonus Scheme (DSBS) | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Options exercisable period | 3 years | |||||||
Sharesave Scheme (SAYE) | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Discount percentage on market price | 20% | 20% | ||||||
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) | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Maximum amount of free shares that can be granted | £ | £ 3,600 | |||||||
Investment holding period | 3 years | |||||||
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 | |||||||
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 | |||||||
Equity Settled Long Term Incentive Plan | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Number of options outstanding (in shares) | 8,960,000 | 8,960,000 | 9,891,000 | 9,891,000 | 10,000,000 | 10,000,000 | 9,891,000 | |
Number of share options exercisable (in shares) | 661,000 | 661,000 | 611,000 | 611,000 | 611,000 | |||
Weighted average share price at date of exercise for share options exercised (in GBP per share) | £ / shares | £ 32.84 | £ 27.67 | £ 29.37 | |||||
Weighted average remaining contractual life of outstanding shares | 1 year 9 months 18 days | 3 years 8 months 12 days | 3 years 8 months 12 days | 8 years 1 month 6 days | 8 years 1 month 6 days | |||
Equity Settled Long Term Incentive Plan | Reynolds American Inc. | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Number of options outstanding (in shares) | 1,749,762 | 1,749,762 | 2,650,364 | 2,650,364 | 2,650,364 | |||
Number of share options exercisable (in shares) | 0 | 0 | 0 | 0 | 0 | |||
Weighted average share price at date of exercise for share options exercised (in GBP per share) | $ / shares | $ 38.37 | $ 35.93 | $ 40.04 | |||||
Weighted average remaining contractual life of outstanding shares | 1 year 9 months 18 days | 1 year 8 months 12 days | 1 year 8 months 12 days | 1 year 8 months 19 days | 1 year 8 months 19 days | |||
LTIP, Cash-settled | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Number of options outstanding (in shares) | 196,000 | 196,000 | 243,000 | 243,000 | 274,000 | 274,000 | 243,000 | |
Number of share options exercisable (in shares) | 40,000 | 40,000 | 29,000 | 29,000 | 29,000 | |||
Weighted average share price at date of exercise for share options exercised (in GBP per share) | £ / shares | £ 33.01 | £ 27.59 | £ 28.68 | |||||
Weighted average remaining contractual life of outstanding shares | 1 year 8 months 12 days | 4 years 1 month 6 days | 4 years 1 month 6 days | 8 years 1 month 6 days | 8 years 1 month 6 days | |||
DSBS, Equity-settled | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Number of options outstanding (in shares) | 4,015,000 | 4,015,000 | 4,141,000 | 4,141,000 | 4,141,000 | 4,141,000 | 4,141,000 | |
Number of share options exercisable (in shares) | 1,000 | 1,000 | 0 | 0 | 0 | |||
Weighted average share price at date of exercise for share options exercised (in GBP per share) | £ / shares | £ 32.20 | £ 27.58 | £ 28.08 | |||||
Weighted average remaining contractual life of outstanding shares | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 4 months 24 days | 1 year 4 months 24 days | |||
DSBS, Cash-settled | ||||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||||||||
Number of options outstanding (in shares) | 141,000 | 141,000 | 223,000 | 223,000 | 200,000 | 200,000 | 223,000 | |
Number of share options exercisable (in shares) | 14,000 | 14,000 | 1,000 | 1,000 | 1,000 | |||
Weighted average share price at date of exercise for share options exercised (in GBP per share) | £ / shares | £ 32.50 | £ 27.70 | £ 28.06 | |||||
Weighted average remaining contractual life of outstanding shares | 1 year 1 month 6 days | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 4 months 24 days | 1 year 4 months 24 days |
Share-based payments - Summary
Share-based payments - Summary of Share-based Payment Expense (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | £ 85 | £ 78 | £ 91 |
Equity-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 81 | 76 | 88 |
Equity Settled Long Term Incentive Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 38 | 30 | 36 |
DSBS, Equity-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 36 | 39 | 44 |
Other schemes, Equity-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 7 | 7 | 8 |
Cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 4 | 2 | 3 |
LTIP, Cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 1 | 0 | 0 |
DSBS, Cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | 3 | 2 | 3 |
Other schemes, cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Total recognised in the income statement | £ 0 | £ 0 | £ 0 |
Share-based payments - Summar_2
Share-based payments - Summary of Share-based Payment Liability (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
LTIP, Vested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | £ 0.1 | |
LTIP, Vested | True-up liability | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | £ (0.3) | |
DSBS, Vested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 0.5 | 0.1 |
Vested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 0.2 | 0.2 |
LTIP, Unvested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 1.9 | 1.1 |
DSBS, Unvested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 6.6 | 6.4 |
Unvested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | £ 8.5 | £ 7.5 |
Share-based payments - Summar_3
Share-based payments - Summary of Movements for Equity and Cash-Settled LTIP Scheme (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Settled Long Term Incentive Plan | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year (in shares) | 9,891 | 10,000 |
Number of options granted (in shares) | 2,927 | 3,440 |
Number of options, Exercised during the period (in shares) | (1,606) | (1,639) |
Number of options, Forfeited during the period (in shares) | (2,252) | (1,910) |
Number of options, Outstanding at end of year (in shares) | 8,960 | 9,891 |
Number of options, Exercisable at end of year (in shares) | 661 | 611 |
LTIP, Cash-settled | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year (in shares) | 243 | 274 |
Number of options granted (in shares) | 58 | 81 |
Number of options, Exercised during the period (in shares) | (58) | (48) |
Number of options, Forfeited during the period (in shares) | (47) | (64) |
Number of options, Outstanding at end of year (in shares) | 196 | 243 |
Number of options, Exercisable at end of year (in shares) | 40 | 29 |
Share-based payments - Summar_4
Share-based payments - Summary of Movements for Equity and Cash-Settled DSBS Scheme (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
DSBS, Equity-settled | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year (in shares) | 4,141 | 4,141 |
Number of options granted (in shares) | 1,616 | 1,562 |
Number of options, Exercised during the period (in shares) | (1,609) | (1,497) |
Number of options, Forfeited during the period (in shares) | (133) | (65) |
Number of options, Outstanding at end of year (in shares) | 4,015 | 4,141 |
Number of options, Exercisable at end of year (in shares) | 1 | 0 |
DSBS, Cash-settled | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year (in shares) | 223 | 200 |
Number of options granted (in shares) | 85 | 179 |
Number of options, Exercised during the period (in shares) | (159) | (142) |
Number of options, Forfeited during the period (in shares) | (8) | (14) |
Number of options, Outstanding at end of year (in shares) | 141 | 223 |
Number of options, Exercisable at end of year (in shares) | 14 | 1 |
Share-based payments - Valuatio
Share-based payments - Valuation Assumptions (Details) - GBP (£) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Long Term Incentive Plan | Total Company | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Expected volatility (%) | 27% | 27% |
Average expected term to exercise (years) | 3 years | 3 years |
Risk-free rate (%) | 1.40% | 0.20% |
Expected dividend yield (%) | 6.80% | 7.70% |
Share price at date of grant (in £ per share) | £ 32.18 | £ 27.94 |
Long Term Incentive Plan | Total Company | Bottom of range | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Fair value at grant date (in £ per share) | £ 27.46 | £ 19.87 |
Long Term Incentive Plan | Total Company | Top of range | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Fair value at grant date (in £ per share) | 26.28 | 22.20 |
Long Term Incentive Plan | Management Board | Bottom of range | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Fair value at grant date (in £ per share) | 24.80 | 17.35 |
Long Term Incentive Plan | Management Board | Top of range | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Fair value at grant date (in £ per share) | £ 26.28 | £ 22.20 |
Deferred Share Bonus Scheme (DSBS) | Total Company | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Expected volatility (%) | 27% | 27% |
Average expected term to exercise (years) | 3 years | 3 years |
Risk-free rate (%) | 1.40% | 0.20% |
Expected dividend yield (%) | 6.80% | 7.70% |
Share price at date of grant (in £ per share) | £ 32.18 | £ 27.94 |
Fair value at grant date (in £ per share) | £ 26.28 | £ 22.20 |
Deferred Share Bonus Scheme (DSBS) | Management Board | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Fair value at grant date (in £ per share) | £ 26.28 | £ 22.20 |
Share-based payments - Summar_5
Share-based payments - Summary of Valuation Assumptions Used in Models (Details) - Long Term Incentive Plan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Average share price volatility FMCG comparator group (%) | 23% | 23% |
Average correlation FMCG comparator group (%) | 31% | 29% |
Group employees - Additional In
Group employees - Additional Information (Details) - Employee | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number and average number of employees [abstract] | ||
Average number of employees | 77,951 | 82,868 |
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, 2022 | Dec. 31, 2021 | |
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 77,951 | 82,868 |
Associates | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 25,874 | 28,503 |
Subsidiaries | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 52,077 | 54,365 |
Subsidiaries | U.S. | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 4,274 | 4,789 |
Subsidiaries | AME | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 34,162 | 35,092 |
Subsidiaries | APMEA | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 13,641 | 14,484 |
Related party disclosures - Add
Related party disclosures - Additional information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 26, 2022 | Mar. 31, 2021 | |
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Percentage of additional voting equity interests acquired | 0.20% | ||||
Sanity Group GmbH | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Fair value total | £ 32 | ||||
Acquisition percentage | 16% | ||||
Steady State LLC | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Fair value total | £ 4 | ||||
Associates and JVs | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Dividends paid by the associate | £ 438 | £ 392 | £ 394 | ||
Hrvatski Duhani D D Tobacco Leaf Processing | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Fair value total | £ 1 | ||||
Acquisition percentage | 3.30% | 2.70% | |||
Payment to acquire NCI | £ 1 | £ 1 | |||
Samfruit | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Fair value total | £ 1 | £ 1 | £ 5 | ||
Samfruit | Uzbekistan | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Ownership interest in associates | 45.40% | 42.61% | 38.63% | ||
Brascuba Cigarrillos S.A | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Payment to match contributions made by non-controlling interests | £ 6 | £ 17 | |||
Bentoel | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Fair value total | £ 4 | ||||
Organigram | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Acquisition percentage | 19.90% |
Related party disclosures - Sum
Related party disclosures - Summary of Transactions Between Related Parties (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transactions | |||
– revenue | £ 494 | £ 524 | £ 495 |
– purchases | (190) | (123) | (80) |
– other net income | 440 | 387 | 388 |
Amounts receivable at 31 December | 51 | 48 | 33 |
Amounts payable at 31 December | £ (4) | £ (3) | £ (5) |
Related party disclosures - S_2
Related party disclosures - Summary of Amounts Incurred by Entity for Provision of Key Management Personnel Services (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
The total compensation for key management personnel, including Directors, was: | |||
– salaries and other short-term employee benefits | £ 19,000 | £ 18,000 | £ 17,000 |
– post-employment benefits | 1,000 | 1,000 | 2,000 |
– share-based payments | 17,000 | 16,000 | 13,000 |
Key management personnel compensation - total | 37,000 | 35,000 | 32,000 |
Salary; fees; benefits; incentives | |||
– salary | 2,553,000 | 2,315,000 | 2,277,000 |
Pension; other emoluments | |||
Total emoluments | 19,000 | 18,000 | 17,000 |
Executive Directors | |||
The total compensation for key management personnel, including Directors, was: | |||
– salaries and other short-term employee benefits | 14,553 | 10,390 | 7,662 |
– post-employment benefits | 320 | 318 | 304 |
Salary; fees; benefits; incentives | |||
– salary | 2,129 | 2,119 | 2,026 |
– taxable benefits | 449 | 420 | 744 |
– short-term incentives | 3,761 | 4,128 | 3,274 |
– long-term incentives | 7,888 | 3,399 | 1,294 |
Sub-total | 14,227 | 10,066 | 7,338 |
Pension; other emoluments | |||
– other emoluments | 6 | 6 | 20 |
Sub-total | 326 | 324 | 324 |
Total emoluments | 14,553 | 10,390 | 7,662 |
Chairman | |||
The total compensation for key management personnel, including Directors, was: | |||
– salaries and other short-term employee benefits | 729 | 782 | 791 |
Salary; fees; benefits; incentives | |||
– fees | 670 | 727 | 714 |
– taxable benefits | 59 | 55 | 77 |
Sub-total | 729 | 782 | 791 |
Pension; other emoluments | |||
Total emoluments | 729 | 782 | 791 |
Non-Executive Directors | |||
The total compensation for key management personnel, including Directors, was: | |||
– salaries and other short-term employee benefits | 1,105 | 1,047 | 1,100 |
Salary; fees; benefits; incentives | |||
– fees | 1,027 | 1,045 | 1,028 |
– taxable benefits | 78 | 2 | 72 |
Sub-total | 1,105 | 1,047 | 1,100 |
Pension; other emoluments | |||
Total emoluments | 1,105 | 1,047 | 1,100 |
Total Directors | |||
The total compensation for key management personnel, including Directors, was: | |||
– salaries and other short-term employee benefits | 16,387 | 12,219 | 9,553 |
– post-employment benefits | 320 | 318 | 304 |
Salary; fees; benefits; incentives | |||
– salary | 2,129 | 2,119 | 2,026 |
– fees | 1,697 | 1,772 | 1,742 |
– taxable benefits | 586 | 477 | 893 |
– short-term incentives | 3,761 | 4,128 | 3,274 |
– long-term incentives | 7,888 | 3,399 | 1,294 |
Sub-total | 16,061 | 11,895 | 9,229 |
Pension; other emoluments | |||
– other emoluments | 6 | 6 | 20 |
Sub-total | 326 | 324 | 324 |
Total emoluments | £ 16,387 | £ 12,219 | £ 9,553 |
Contingent liabilities and fi_3
Contingent liabilities and financial commitments - General Litigation Overview - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 GBP (£) EGP (ج.م.) HRK (kn) USD ($) EUR (€) JPY (¥) CAD ($) QAR (ر.ق) BRL (R$) SAR (ر.س) AOA (Kz) ARS ($) NGN (₦) MZN (MT) KRW (₩) Case | Dec. 31, 2022 USD ($) EGP (ج.م.) HRK (kn) EUR (€) JPY (¥) CAD ($) QAR (ر.ق) BRL (R$) SAR (ر.س) AOA (Kz) ARS ($) NGN (₦) MZN (MT) KRW (₩) Case | Dec. 31, 2022 ARS ($) EGP (ج.م.) HRK (kn) USD ($) EUR (€) JPY (¥) CAD ($) QAR (ر.ق) BRL (R$) SAR (ر.س) AOA (Kz) NGN (₦) MZN (MT) KRW (₩) Case | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | |
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Provisions under state settlement agreements | £ 4,300,000,000 | $ 5,200,000,000 | |||
Initial number of cases | Case | 4,000 | 4,000 | 4,000 | ||
Number of cases after reduction | Case | 400 | 400 | 400 | ||
Settlement expenses | £ | £ 2,387,000,000 | £ 2,486,000,000 | £ 2,783,000,000 | ||
Case 2 | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Post-judgment interest | £ 435,000 | $ 92,638,000 | |||
U.S. dollar | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | 1.2029 | 1.2029 | 1.2029 | ||
Canada, Dollars | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | 1.6299 | 1.6299 | 1.6299 | ||
Euro | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | € | 1.1271 | 1.1271 | 1.1271 | ||
Brazil, Brazil Real | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | R$ | 6.3510 | 6.3510 | 6.3510 | ||
Angola, Kwanza | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | Kz | 613.3401 | 613.3401 | 613.3401 | ||
Nigeria, Nairas | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | ₦ | 703.8799 | 703.8799 | 703.8799 | ||
Korea (South), Won | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | ₩ | 1,521.07 | 1,521.07 | 1,521.07 | ||
Croatia, Kuna | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | kn | 8.4921 | 8.4921 | 8.4921 | ||
Japan, Yen | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | ¥ | 158.7166 | 158.7166 | 158.7166 | ||
Qatar, Rials | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | ر.ق | 4.3807 | 4.3807 | 4.3807 | ||
Saudi Arabia, Riyals | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | ر.س | 4.5205 | 4.5205 | 4.5205 | ||
Argentina, Pesos | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | 213.0510 | 213.0510 | 213.0510 | ||
Mozambique, Meticais | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | MT | 77.0999 | 77.0999 | 77.0999 | ||
Egypt, Pounds | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Closing foreign exchange rate of GBP 1 | ج.م. | 29.7778 | 29.7778 | 29.7778 |
Contingent liabilities and fi_4
Contingent liabilities and financial commitments - General Litigation Overview - Schedule of Categories of Tobacco Related Actions Pending Against Group Companies (Details) | 12 Months Ended | |||||
Dec. 31, 2022 GBP (£) | Dec. 31, 2022 Case | Dec. 31, 2022 CASE | Dec. 31, 2022 ARS ($) | Dec. 31, 2021 GBP (£) Case | Dec. 31, 2020 GBP (£) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Master settlement agreement | £ | £ 2,387,000,000 | £ 2,486,000,000 | £ 2,783,000,000 | |||
Case 1 | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Post-judgment interest | 25,000 | $ 5,288,000 | ||||
Case 2 | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Post-judgment interest | 435,000 | 92,638,000 | ||||
Medical reimbursement cases | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 2 | 2 | ||||
Change in Number Increase/(decrease) | ||||||
Class actions | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 20 | 20 | ||||
Change in Number Increase/(decrease) | ||||||
Individual smoking and health cases | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 206 | 222 | ||||
Change in Number Increase/(decrease) | (16) | |||||
Engle Progeny Cases | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 665 | 1,071 | ||||
Change in Number Increase/(decrease) | (406) | |||||
Broin II Cases | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 1,183 | 1,200 | ||||
Change in Number Increase/(decrease) | (17) | |||||
Filter Cases | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 46 | 46 | ||||
Change in Number Increase/(decrease) | ||||||
State Settlement Agreements – Enforcement and Validity | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 1 | 2 | ||||
Change in Number Increase/(decrease) | (1) | |||||
Medical reimbursement cases, Non-US tobacco related | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 18 | 19 | ||||
Change in Number Increase/(decrease) | (1) | |||||
Class actions, Non-US tobacco related | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 12 | 12 | ||||
Change in Number Increase/(decrease) | ||||||
Class actions, Non-US tobacco related | Outside United States | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 12 | |||||
Class actions, Non-US tobacco related | Canada | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 11 | |||||
Class actions, Non-US tobacco related | Venezeula | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 1 | |||||
Individual smoking and health cases, Non-US tobacco related | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 51 | 68 | ||||
Change in Number Increase/(decrease) | (17) | |||||
Individual smoking and health cases, Non-US tobacco related | Canada | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | CASE | 5 | |||||
Individual smoking and health cases, Non-US tobacco related | Brazil | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | CASE | 17 | |||||
Individual smoking and health cases, Non-US tobacco related | Chile | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | CASE | 11 | |||||
Individual smoking and health cases, Non-US tobacco related | Italy | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | CASE | 9 | |||||
Individual smoking and health cases, Non-US tobacco related | Argentina | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 2 | 5 | ||||
Individual smoking and health cases, Non-US tobacco related | Argentina | Case 1 | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Post-judgment interest | 25,000 | 5,288,000 | ||||
Individual smoking and health cases, Non-US tobacco related | Argentina | Case 2 | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Master settlement agreement | 13,400 | 2,850,000 | ||||
Post-judgment interest | 435,000 | 92,638,000 | ||||
Individual smoking and health cases, Non-US tobacco related | Argentina | Compensatory damages | Case 1 | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Master settlement agreement | 3,200 | 685,976 | ||||
Individual smoking and health cases, Non-US tobacco related | Argentina | Punitive damages | Case 1 | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Master settlement agreement | £ 11,700 | $ 2,500,000 | ||||
Individual smoking and health cases, Non-US tobacco related | Ireland | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | CASE | 2 | |||||
Individual smoking and health cases, Non-US tobacco related | Further two jurisdictions | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Case numbers | 1 |
Contingent liabilities and fi_5
Contingent liabilities and financial commitments - US Tobacco Litigation - Additional Information (Details) | 12 Months Ended | 36 Months Ended | |||||
Aug. 17, 2006 SUBJECT | Dec. 31, 2022 USD ($) CLASSACTION CASE DISTRICTCOURT REIMBURSEMENT | Dec. 31, 2022 GBP (£) CLASSACTION CASE DISTRICTCOURT REIMBURSEMENT | Dec. 31, 2022 CASE CLASSACTION REIMBURSEMENT | Apr. 30, 2016 CLASSACTION | Sep. 22, 1999 USD ($) | Sep. 22, 1999 GBP (£) | |
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Industry claim for disgorgement | $ 280,000,000,000 | £ 232,800,000,000 | |||||
Number of brand descriptors directed by court for corrective communications | SUBJECT | 5 | ||||||
Number of class actions in lawsuit | CLASSACTION | 17 | 17 | 17 | ||||
Percentage of additive-free cigarettes | 100% | 100% | |||||
Class action alleged excess amount that plaintiffs seeking | $ 5,000,000 | £ 4,160,000 | |||||
Top of range | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Class action alleged maximum amount that plaintiffs seeking | $ 75,000 | £ 62,349 | |||||
US tobacco related actions | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of class action raised against plaintiffs seeking more than 5m | CLASSACTION | 16 | 16 | |||||
Number of class action raised against plaintiffs seeking less than 75k | CLASSACTION | 1 | 1 | |||||
Jones v. American Tobacco Co. | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Other putative class action case filed date | 1998-12 | 1998-12 | |||||
Other putative class action case activities current | CLASSACTION | 0 | 0 | |||||
Young v. American Tobacco Co. | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Other putative class action case filed date | 1997-11 | 1997-11 | |||||
R J R T B and W and Lorillard Tobacco | Crow Creek Sioux Tribe and American Tobacco Co | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number reimbursement pending | REIMBURSEMENT | 1 | 1 | 1 | ||||
Reynolds defendants | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Total number of cases affirmed in favour of plaintiffs | 23 | ||||||
Number of cases dismissed during trial | 3 | ||||||
Number of cases for which new trial is ordered | 1 | ||||||
Reynolds defendants | Florida | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Total number of cases affirmed in favour of defendants | 5 | ||||||
Total number of cases affirmed in favour of plaintiffs | 18 | ||||||
Reynolds defendants | Oregon | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Total number of cases affirmed in favour of defendants | 1 | ||||||
Total number of cases affirmed in favour of plaintiffs | 2 | ||||||
Reynolds defendants | Massachusetts | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Total number of cases affirmed in favour of defendants | 2 | ||||||
Total number of cases affirmed in favour of plaintiffs | 1 | ||||||
Reynolds defendants | New Mexico | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Total number of cases affirmed in favour of plaintiffs | 1 | ||||||
SFNTC | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Percentage of additive-free cigarettes | 100% | 100% | |||||
Number of putative class actions filed | CLASSACTION | 17 | 17 | 17 | 16 | |||
Hearing period | 5 days | 5 days | |||||
United States | Engle Progeny cases | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of cases scheduled for trial | 77 | 77 | 77 | ||||
United States | R J R T B and W and Lorillard Tobacco | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Total number of tobacco product liability case | 2,140 | 2,140 | |||||
United States | US Tobacco litigation | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Category of case | 4 | 4 | |||||
United States | Reynolds defendants | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of cases scheduled for trial | 48 | 48 | 48 | ||||
Number of cases defendants | 44 | ||||||
Number of cases, mistrials declared | 9 | ||||||
Total number of cases affirmed in favour of defendants | 8 | ||||||
United States | Reynolds defendants | Individual smoking and health cases | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of cases scheduled for trial | 35 | 35 | 35 | ||||
United States | Reynolds defendants | Filter cases | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of cases scheduled for trial | 11 | 11 | 11 | ||||
United States | Reynolds defendants | Other non smoking and health cases | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of cases scheduled for trial | 2 | 2 | 2 | ||||
United States | SFNTC | |||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||
Number of district courts filed class actions cases | DISTRICTCOURT | 9 | 9 |
Contingent liabilities and fi_6
Contingent liabilities and financial commitments - Engle Class Action and Engle Progeny Cases (Florida) - Additional Information (Details) | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||||||
Jul. 31, 2020 GBP (£) REPRESENTATIVE | Jul. 31, 2020 USD ($) REPRESENTATIVE | Dec. 31, 2022 GBP (£) CASE REPRESENTATIVE | Dec. 31, 2022 USD ($) CASE REPRESENTATIVE | Dec. 31, 2021 GBP (£) Case | Dec. 31, 2020 GBP (£) | Dec. 31, 2015 GBP (£) CASE | Dec. 31, 2015 USD ($) CASE | Dec. 31, 2022 GBP (£) CASE | Dec. 31, 2022 USD ($) CASE | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Master settlement agreement | £ | £ 2,387,000,000 | £ 2,486,000,000 | £ 2,783,000,000 | |||||||
Number of paid judgements cases | 11 | 11 | ||||||||
Phase II | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Master settlement agreement | £ 120,500,000,000 | $ 145,000,000,000 | ||||||||
Number of representative in Engle class action awarded | REPRESENTATIVE | 3 | 3 | ||||||||
Loss contingency amount of overall damages comprising compensatory damages | £ 10,800,000 | $ 13,000,000 | ||||||||
Engle class action and Engle Progeny cases Florida | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of representative in Engle class action awarded | REPRESENTATIVE | 3 | 3 | ||||||||
Number of representatives allowed by judgment to stand aside punitive damages award | REPRESENTATIVE | 2 | 2 | ||||||||
Members permitted to file description | Putative | Putative | ||||||||
Period of permission to file individual lawsuits | 1 year | 1 year | ||||||||
Individual lawsuits extended date | Jan. 11, 2008 | Jan. 11, 2008 | ||||||||
Engle Progeny cases | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Master settlement agreement | £ 77,000,000 | $ 92,934,000 | ||||||||
Litigation settlement amount | £ 83,100,000 | $ 100,000,000 | ||||||||
Number of cases covered by settlement | 400 | 400 | ||||||||
Number of cases not covered by settlement | 12 | 12 | ||||||||
Number of cases not covered by settlement, filed by different lawyer | 2 | 2 | ||||||||
Total number of cases | 665 | 665 | 1,071 | |||||||
Number of plaintiffs | 838 | 838 | ||||||||
Number of cases | 5 | 5 | ||||||||
Payment for compensatory and punitive damages | £ 11,000,000 | $ 13,200,000 | ||||||||
Number of cases for attorneys fees and statutory interest | 14 | 14 | 14 | 14 | ||||||
Number of resolution bundles for attorneys fees and statutory interest | 3 | 3 | 3 | 3 | ||||||
Amount paid for attorneys fees and statutory interest | £ 44,100,000 | $ 53,000,000 | ||||||||
Engle Progeny cases | Florida | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Total number of trials | 31 | 31 | ||||||||
Total bond cap | £ 166,300,000 | $ 200,000,000 | ||||||||
R J Reynolds Tobacco Company | Phase II | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Master settlement agreement | 30,200,000,000 | 36,300,000,000 | ||||||||
R J Reynolds Tobacco Company | Engle Progeny cases | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Litigation settlement amount | £ 35,300,000 | $ 42,500,000 | ||||||||
Brown and Williamson Holdings Inc | Phase II | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Master settlement agreement | 14,600,000,000 | 17,600,000,000 | ||||||||
Lorillard Inc | Phase II | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Master settlement agreement | £ 13,600,000,000 | $ 16,300,000,000 | ||||||||
PM USA | Engle Progeny cases | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Litigation settlement amount | 35,300,000 | 42,500,000 | ||||||||
Lorillard Tobacco | Engle Progeny cases | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Litigation settlement amount | £ 12,500,000 | $ 15,000,000 |
Contingent liabilities and fi_7
Contingent liabilities and financial commitments - Engle Class Action and Engle Progeny Cases (Florida) (Details) £ in Millions | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2022 GBP (£) CASE | Dec. 31, 2021 GBP (£) Case | Dec. 31, 2020 GBP (£) | Dec. 31, 2022 GBP (£) Case CASE | Dec. 31, 2022 USD ($) Case CASE | |
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Master settlement agreement | £ | £ 2,387 | £ 2,486 | £ 2,783 | ||
Number of paid judgements cases | CASE | 11 | ||||
Engle Progeny cases | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Number of trials resulting in plaintiffs’ verdicts | 16 | 16 | |||
Master settlement agreement | £ 77 | $ 92,934,000 | |||
Number of adverse judgments appealed | 13 | 13 | |||
Number of adverse judgments, still has time to file an appeal | 2 | 2 | |||
Number of adverse judgments in which an appeal was not, and can no longer be, sought | 2 | 2 | |||
Total number of cases | 665 | 1,071 | |||
Engle Progeny cases | Judgements arising three years before reporting year | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Number of adverse judgments appealed | 12 | 12 | |||
Total number of cases | 8 | 8 | |||
Number of resolved cases | 2 | 2 | |||
Number of paid judgements cases | 1 | 1 | |||
Number of cases dismissed during trial | 1 | 1 | |||
Number of additional judgments appealed | 1 | 1 | |||
Engle Progeny cases | Compensatory damages | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Master settlement agreement | £ 48 | $ 57,869,000 | |||
Engle Progeny cases | Punitive damages | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Master settlement agreement | £ 29 | $ 35,065,000 | |||
Engle Progeny cases | Florida | |||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||
Total number of trials | CASE | 31 | 31 | |||
Number of cases tried twice | CASE | 2 | 2 | |||
Number of cases for which new trial is ordered | 1 | 1 |
Contingent liabilities and fi_8
Contingent liabilities and financial commitments - Individual Cases - Additional Information (Details) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | 36 Months Ended | 191 Months Ended | ||||
Oct. 31, 1997 USD ($) INSTALMENT | Oct. 31, 1997 GBP (£) INSTALMENT | Dec. 31, 2022 USD ($) Case CASE | Dec. 31, 2022 GBP (£) Case CASE | Dec. 31, 2021 Case | Dec. 31, 2022 USD ($) CASE | Dec. 31, 2022 GBP (£) CASE | Dec. 31, 2022 CASE | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of individual cases is brought by or on behalf of an individual survivors alleging personal injury as result of exposure to ETS | 1 | 1 | 1 | 1 | 1 | |||
Individual smoking and health cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases | Case | 206 | 206 | 222 | |||||
Individual smoking and health cases | US tobacco related actions | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases have received adverse verdicts or judgments | 9 | 9 | 9 | 9 | 9 | |||
Net amount against verdicts | $ 60 | £ 49.9 | ||||||
Broin I I Cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases | Case | 1,183 | 1,183 | 1,200 | |||||
Loss Contingency Number Of Trials | 0 | |||||||
Filter cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases | Case | 46 | 46 | 46 | |||||
Filter cases | Lorillard Tobacco and RJRT | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Litigation settlement amount | $ 22.3 | £ 18.5 | ||||||
Number of cases | 46 | 46 | ||||||
Number of cases for which damages paid to plaintiffs | 84 | 84 | ||||||
Florida | Broin V Philip Morris Inc | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Litigation settlement amount | $ 300 | £ 249 | ||||||
Number of annual installment for payment | INSTALMENT | 3 | 3 | ||||||
Litigation settlement, annual installment amount | $ 100 | £ 83.1 | ||||||
Amount of plaintiff's counsel fees payable | 49 | 40.7 | ||||||
Florida | R J Reynolds Tobacco Company | Broin V Philip Morris Inc | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, right to re-file plaintiffs, period | 86 | 71.5 | ||||||
Florida | Brown and Williamson Holdings Inc | Broin V Philip Morris Inc | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, right to re-file plaintiffs, period | 57 | 47.4 | ||||||
Florida | Lorillard Tobacco | Broin V Philip Morris Inc | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, right to re-file plaintiffs, period | $ 31 | £ 25.8 |
Contingent liabilities and fi_9
Contingent liabilities and financial commitments - Summary of Individual Cases (Details) | 12 Months Ended | |
Dec. 31, 2022 Case CASE | Dec. 31, 2021 Case | |
Engle Progeny cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 665 | 1,071 |
Number of plaintiffs | CASE | 838 | |
Number of plaintiffs, loss contingency | (1,304) | |
Change in Number Increase/(decrease) | (406) | |
Change in Number Increase / (Decrease) | (466) | |
Individual smoking and health cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 206 | 222 |
Change in Number Increase / (Decrease) | (16) | |
Broin I I Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 1,183 | 1,200 |
Change in Number Increase / (Decrease) | (17) | |
Filter cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 46 | 46 |
Change in Number Increase / (Decrease) |
Contingent liabilities and f_10
Contingent liabilities and financial commitments - State Settlement Agreements - Additional Information (Details) £ in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jul. 28, 2022 USD ($) | Jul. 28, 2022 GBP (£) | May 27, 2022 USD ($) | May 27, 2022 GBP (£) | Jun. 14, 2021 USD ($) | Jun. 14, 2021 GBP (£) | Oct. 05, 2020 USD ($) | Oct. 05, 2020 GBP (£) | Jan. 18, 2017 USD ($) | Jan. 18, 2017 GBP (£) | Sep. 30, 2021 STATE | Nov. 30, 1998 USD ($) CASE | Sep. 30, 2013 STATE | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | Dec. 31, 2018 USD ($) | Dec. 31, 2018 GBP (£) | Dec. 31, 2017 | Jun. 07, 2022 USD ($) | Jun. 07, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Jan. 01, 2021 USD ($) | Jan. 01, 2021 GBP (£) | Oct. 05, 2020 GBP (£) | Nov. 30, 1998 GBP (£) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Trust fund | $ 5,200,000,000 | £ 4,300 | ||||||||||||||||||||||||
Number of states bot diligently enforced qualifying statuses | STATE | 2 | 6 | ||||||||||||||||||||||||
Fair value of bonds | £ | £ 41,411 | £ 37,784 | ||||||||||||||||||||||||
Corporation tax rate | 19% | 19% | 19% | |||||||||||||||||||||||
United States | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Corporation tax rate | 21% | 21% | 35% | |||||||||||||||||||||||
Mississippi settlement agreement | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Settlement payments | $ 5,100,000 | £ 4.2 | ||||||||||||||||||||||||
Imperial Tobacco Group PLC | Florida State settlement agreement wrt 4 brands | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
State settlement agreement | $ 45,000,000 | £ 37.4 | ||||||||||||||||||||||||
Imperial Tobacco Group PLC | Mississippi settlement agreement | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Net operating profits claiming damages | $ 6,000,000 | £ 5 | ||||||||||||||||||||||||
Master settlement agreement | Iowa | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Lawsuit seek damage amount | $ 130,000,000 | £ 108 | ||||||||||||||||||||||||
R J Reynolds Tobacco Company | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Fair value of bonds | $ 187,797,139.83 | £ 156.1 | ||||||||||||||||||||||||
Final judgment litigation settlement amount | $ 192,869,589.86 | £ 160.3 | ||||||||||||||||||||||||
R J Reynolds Tobacco Company | Florida | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Attorney fee payment | $ 3,200,000 | £ 2.7 | ||||||||||||||||||||||||
R J Reynolds Tobacco Company | Master settlement agreement | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of states representing master settlement agreement | 46 | |||||||||||||||||||||||||
Number of previously settled cases brought forward | 4 | |||||||||||||||||||||||||
RJRT | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Extra payment ordered by court as base to calculate payment | $ 5,000,000 | £ 4.2 | ||||||||||||||||||||||||
Receipt from escrow funds | $ 55,400,000 | £ 46.1 | ||||||||||||||||||||||||
Estimated financial effect of contingent liabilities | $ 37,000,000 | £ 30.8 | ||||||||||||||||||||||||
RJRT and ITG | ||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||||
Increase of income related to payment obligation | $ 80,000,000 | £ 66.5 |
Contingent liabilities and f_11
Contingent liabilities and financial commitments - Operating Subsidiaries' Expenses and Payments under State Settlement Agreements (Details) £ in Millions, $ in Millions | 12 Months Ended | 119 Months Ended | |||||||
Jan. 18, 2017 USD ($) | Jan. 18, 2017 GBP (£) | Dec. 31, 2024 GBP (£) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2012 STATE | |
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Settlement expenses | $ | $ 2,951 | $ 3,420 | $ 3,572 | $ 2,762 | |||||
Settlement cash payments | $ | $ 3,129 | $ 3,744 | $ 2,848 | $ 2,918 | |||||
N P M adjustment settlement agreement | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Number of states additionally joined | STATE | 11 | ||||||||
N P M adjustment settlement agreement | Imperial Tobacco Group PLC | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Future annual losses | $ 30 | £ 24.9 | |||||||
Bottom of range | 2023 | Forecast | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Projected settlement expenses | £ 2,800 | ||||||||
Projected settlement cash payments | £ 3,000 | ||||||||
Bottom of range | 2024 and thereafter | Forecast | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Projected settlement expenses | £ 2,800 | ||||||||
Projected settlement cash payments | £ 2,800 |
Contingent liabilities and f_12
Contingent liabilities and financial commitments - Tobacco-Related Litigation Outside the U.S. - Additional Information (Details) $ in Millions, ₩ in Billions, ₦ in Trillions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
May 21, 2019 DISEASE | Mar. 01, 2019 GBP (£) | Mar. 01, 2019 CAD ($) | Jun. 15, 2018 GBP (£) | Jun. 15, 2018 CAD ($) | Feb. 13, 2017 GBP (£) | Feb. 13, 2017 CAD ($) | Oct. 27, 2015 GBP (£) | Oct. 27, 2015 CAD ($) | Jun. 06, 2015 GBP (£) | Jun. 06, 2015 CAD ($) | May 27, 2015 GBP (£) | May 27, 2015 CAD ($) | Nov. 30, 2016 GBP (£) | Nov. 30, 2016 AOA (Kz) | Dec. 31, 2022 ARS ($) CLAIM Case ACTION | Dec. 31, 2022 GBP (£) CLAIM Case province ACTION CLASSACTION territory | Dec. 31, 2022 CAD ($) CLAIM Case ACTION | Dec. 31, 2022 NGN (₦) CLAIM Case ACTION | Dec. 31, 2022 KRW (₩) CLAIM Case ACTION | Dec. 31, 2021 GBP (£) MARKET | Dec. 31, 2021 CAD ($) MARKET | Dec. 31, 2022 CAD ($) CLASSACTION territory province ACTION | Mar. 01, 2019 CAD ($) | Jan. 31, 2019 GBP (£) | Jan. 31, 2019 CAD ($) | Jun. 15, 2018 CAD ($) | Jun. 30, 2010 CLASSACTION | Jun. 30, 2009 CLASSACTION | |
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Canadian provinces | province | 10 | 10 | |||||||||||||||||||||||||||
Canadian territories where legislation has Royal Assent | territory | 2 | 2 | |||||||||||||||||||||||||||
Canadian territories | territory | 3 | 3 | |||||||||||||||||||||||||||
Number of class actions in lawsuit | CLASSACTION | 17 | 17 | |||||||||||||||||||||||||||
Number of personal injury claims | 51 | 51 | 51 | 51 | 51 | ||||||||||||||||||||||||
Number of claims received unfavourable verdicts | Case | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Nigerian court | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation damages sought value | £ 15,000,000,000 | ₦ 10.6 | |||||||||||||||||||||||||||
Case 1 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Post-judgment interest | $ 5,288,000 | 25,000 | |||||||||||||||||||||||||||
Case 2 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Total value of unfavourable verdicts | 2,850,000 | 13,400 | |||||||||||||||||||||||||||
Post-judgment interest | 92,638,000 | 435,000 | |||||||||||||||||||||||||||
Tobacco product liability claims | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of markets outside US | MARKET | 12 | 12 | |||||||||||||||||||||||||||
Knight class action | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Cost order amount | 3,100,000 | $ 5 | |||||||||||||||||||||||||||
Compensatory damages | Case 1 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Total value of unfavourable verdicts | 685,976 | 3,200 | |||||||||||||||||||||||||||
Punitive damages | Case 1 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Total value of unfavourable verdicts | $ 2,500,000 | £ 11,700 | |||||||||||||||||||||||||||
Canada | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of class actions | ACTION | 11 | 11 | |||||||||||||||||||||||||||
Number of personal injury claims | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||||||||
Canada | Tobacco Damages and Health Care Costs Recovery Act 2000 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Lawsuit seek damage amount | £ 3,100,000 | $ 5 | |||||||||||||||||||||||||||
Canada | Treatment of smoking and health related diseases | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of actions for recovery of health care costs | ACTION | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||||||||
Canada | Growers class action | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation damages sought value | £ 30,700,000 | $ 50 | |||||||||||||||||||||||||||
Canada | Quebec class actions | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of class actions in lawsuit | CLASSACTION | 2 | 2 | |||||||||||||||||||||||||||
Domestic manufacturers party to litigation | CLASSACTION | 2 | 2 | |||||||||||||||||||||||||||
Litigation settlement amount | £ 9,600,000,000 | $ 15,600 | |||||||||||||||||||||||||||
Litigation settlement provisional execution amount | £ 694,000,000 | $ 1,131 | |||||||||||||||||||||||||||
Litigation settlement guarantee amount | 3,100,000,000 | 5,000 | |||||||||||||||||||||||||||
Security amount to be posted by parties | £ 604,000,000 | $ 984 | |||||||||||||||||||||||||||
Litigation settlement reduction of total maximum adjustments | £ 8,400,000,000 | $ 13,700 | |||||||||||||||||||||||||||
Canada | Quebec class actions | Imperial Tobacco Canada Limited | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation settlement amount | £ 6,400,000,000 | $ 10,400 | |||||||||||||||||||||||||||
Litigation settlement provisional execution amount | £ 455,000,000 | $ 742 | |||||||||||||||||||||||||||
Security amount to be posted by parties | £ 465,000,000 | $ 758 | |||||||||||||||||||||||||||
Payment of litigation initial deposits | 465,700,000 | $ 759 | |||||||||||||||||||||||||||
Litigation settlement reduction of total maximum adjustments | 5,600,000,000 | 9,200 | |||||||||||||||||||||||||||
Canada | Other Canadian smoking and health class actions | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of class actions in lawsuit | CLASSACTION | 7 | 7 | 4 | ||||||||||||||||||||||||||
Canadian Province | Treatment of smoking and health related diseases | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of actions for recovery of health care costs | ACTION | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||||||||
South Korea | National Health Insurance Service | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation damages sought value | £ 35,500,000 | ₩ 54 | |||||||||||||||||||||||||||
Brazil | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of personal injury claims | 17 | 17 | 17 | 17 | 17 | ||||||||||||||||||||||||
Brazil | Federal Attorney's office | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of tobacco-related diseases allegedly expended as public health care expenses | DISEASE | 26 | ||||||||||||||||||||||||||||
British Columbia | Other Canadian smoking and health class actions | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of class actions in lawsuit | CLASSACTION | 2 | ||||||||||||||||||||||||||||
Angola | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Lawsuit seek damage amount | £ 1,300,000 | Kz 800,000,000 | |||||||||||||||||||||||||||
British Columbia | Tobacco Damages and Health Care Costs Recovery Act 2000 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Lawsuit seek damage amount | £ 72,400,000,000 | $ 118,000 | |||||||||||||||||||||||||||
British Columbia | Tobacco Damages and Health Care Costs Recovery Act 2000 | Bottom of range | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Tax assessment amount | £ 6,800,000,000 | $ 11,100 | |||||||||||||||||||||||||||
British Columbia | Tobacco Damages and Health Care Costs Recovery Act 2000 | Top of range | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Tax assessment amount | £ 14,200,000,000 | $ 23,200 | |||||||||||||||||||||||||||
Ontario | Tobacco Damages And Health Care Costs Recovery Act 2009 | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Lawsuit seek damage amount | £ 202,500,000,000 | $ 330,000 | |||||||||||||||||||||||||||
Ontario | Tobacco Damages And Health Care Costs Recovery Act 2009 | Bottom of range | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Tax assessment amount | 172,000,000,000 | $ 280,000 | |||||||||||||||||||||||||||
Additon to estimated effect of contingent liabilities | £ 5,800,000,000 | $ 9,400 | |||||||||||||||||||||||||||
Ontario | Tobacco Damages And Health Care Costs Recovery Act 2009 | Top of range | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Tax assessment amount | £ 387,000,000,000 | $ 630,000 | |||||||||||||||||||||||||||
Additon to estimated effect of contingent liabilities | £ 6,700,000,000 | $ 10,900 | |||||||||||||||||||||||||||
Chile | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of personal injury claims | 11 | 11 | 11 | 11 | 11 | ||||||||||||||||||||||||
Italy | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of personal injury claims | 9 | 9 | 9 | 9 | 9 | ||||||||||||||||||||||||
Argentina | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of personal injury claims | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||||||||
Ireland | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of personal injury claims | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Two Jurisdictions | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of personal injury claims | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Imperial Tobacco Canada | Canada | |||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||
Settlement proceeds from judgement | £ 5,600,000,000 | $ 9,200 | |||||||||||||||||||||||||||
Settlement payments | £ 465,000,000 | $ 758 |
Contingent liabilities and f_13
Contingent liabilities and financial commitments - Non-Tobacco-Related Litigation - Additional Information (Details) € in Millions, ¥ in Millions, $ in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Sep. 07, 2022 GBP (£) | Sep. 07, 2022 USD ($) | Jun. 15, 2022 GBP (£) patent | Jun. 15, 2022 USD ($) patent | Jan. 25, 2021 GBP (£) | Jan. 25, 2021 SAR (ر.س) | Jan. 07, 2021 QAR (ر.ق) | Dec. 31, 2020 FARMER affiliate | Aug. 16, 2020 GBP (£) Case consignment | Aug. 16, 2020 QAR (ر.ق) Case consignment | Dec. 11, 2019 GBP (£) | Dec. 11, 2019 USD ($) | Feb. 06, 2019 GBP (£) | Feb. 06, 2019 USD ($) | Jan. 17, 2019 GBP (£) | Jan. 17, 2019 JPY (¥) | Dec. 31, 2018 GBP (£) | Dec. 31, 2018 MZN (MT) | Apr. 30, 2018 GBP (£) | Apr. 30, 2018 HRK (kn) | Aug. 22, 2017 GBP (£) | Aug. 22, 2017 HRK (kn) | Jan. 31, 2022 FARMER | Sep. 30, 2014 GBP (£) | Sep. 30, 2014 USD ($) | May 31, 2012 | Dec. 31, 2015 GBP (£) | Dec. 31, 2015 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Nov. 10, 2022 Case | Mar. 31, 2018 GBP (£) | Mar. 31, 2018 MZN (MT) | Dec. 31, 2022 GBP (£) Employee | Dec. 31, 2022 USD ($) Employee | Dec. 31, 2022 CAD ($) Employee | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2019 GBP (£) | Dec. 31, 2009 GBP (£) | Dec. 31, 2009 USD ($) | Dec. 31, 2009 EUR (€) | Dec. 31, 2008 GBP (£) | Dec. 31, 2008 EUR (€) | Jan. 27, 2023 | Jan. 11, 2023 Case | Jun. 08, 2022 patent | May 12, 2021 patent | Jun. 29, 2020 patent | May 28, 2020 patent | Apr. 09, 2020 patent | Nov. 30, 2019 GBP (£) | Nov. 30, 2019 USD ($) | |
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs obligation commitment with NCR | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental clean-up costs paid by related party | £ 20,800,000 | $ 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of employees | Employee | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Crown's Right Of Recovery Act 2009 | Alberta | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Lawsuit seek damage amount | £ 6,100,000,000 | $ 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tobacco Damages And Health Care Costs Recovery Act 2009 | Quebec | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Lawsuit seek damage amount | 36,800,000,000 | $ 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ali Bin Ali establishment | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of cases | Case | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Customs duties and penalties | ر.ق 160,531,588 | £ 36,600,000 | ر.ق 160,531,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of cigarette consignments | consignment | 27 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Al Naghi | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reimbursement of funds allegedly due under contract | £ 466,000,000 | ر.س 2,105,356,121 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Malawi group | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of farmer claimants | FARMER | 7,500 | 3,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of affiliate claimants | affiliate | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Camellia Chastain | Litigation Outcome | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of class actions | Case | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Croatian distributor dispute | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation | £ 48,000,000 | kn 408,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of claim against damages related to litigation | £ 48,000,000 | kn 408,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Glo litigation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of damages claimed | £ 630,054 | ¥ 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Altria Client Services LLC | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation | £ 79,000,000 | $ 95,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted dropped | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Altria Client Services LLC | Vuse Vibe | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Altria Client Services LLC | Vuse Alto | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted | 3 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted dropped | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents infringed | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Altria Client Services LLC | Velo oral product | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Altria Client Services LLC | Solo | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents infringed | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Altria Client Services LLC | Litigation Outcome | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Royalty rate awarded | 5.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Philip Morris | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation | £ 8,944,846 | $ 10,759,755 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted | 2 | 5 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of patents asserted dropped | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation incl supplement | £ 11,690,699 | $ 14,062,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mozambican IP litigation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation | £ 188,200,000 | MT 14,500,000,000 | £ 607,156 | MT 46,811,700 | |||||||||||||||||||||||||||||||||||||||||||||||||
Asbestos litigation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of cases | Case | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fox River | N C R | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total estimated clean-up costs | £ 1,119,000,000 | $ 1,346,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amount claimed by contractor on contractual dispute | £ 8,300,000 | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share of NCR costs | 25% | 25% | 25% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs demanded | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs commitment with NCR | 50% | 50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs commitment allocated to later period | 50% | 50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental clean-up costs paid by related party | £ | £ 2,000,000 | £ 2,000,000 | £ 32,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for environmental clean-up costs | £ | £ 54,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fox River | Windward | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental clean-up costs paid by related party | £ 8,300,000 | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Windward dividend claim | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend paid by Windward to Sequana | £ 119,800,000 | € 135 | £ 393,000,000 | € 443 | |||||||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement amount liable to pay due to calculation change | £ 153,800,000 | $ 185,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Windward dividend claim | Sequana | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend paid by Windward to Sequana | £ 153,800,000 | $ 185,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend paid by Sequana | £ | £ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to made on remediation work | £ 204,000,000 | $ 245,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | N C R | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated recovery percentage by related party | 60% | 60% | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | N C R | Georgia-Pacific | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of outstanding judgment by a related party to related party | £ 16,600,000 | $ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | NCR and Appvion | Funding | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Recovery amount for future sites | £ 20,800,000 | $ 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
DOJ and OFAC investigations £m | Other provisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Charges in respect of DOJ investigation | £ 450,000,000 | $ 541,000,000 |
Contingent liabilities and f_14
Contingent liabilities and financial commitments - General Litigation Conclusion - Additional Information (Details) £ in Millions, $ in Millions | Mar. 01, 2019 CAD ($) People | Mar. 01, 2019 GBP (£) People |
Disclosure Of Commitments And Contingencies [Abstract] | ||
Number of persons in trial judgement panel | 5 | 5 |
Initial estimable deposit amount | $ 758 | £ 465 |
Contingent liabilities and f_15
Contingent liabilities and financial commitments - Other contingencies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) ProductLiabilityAction | Dec. 31, 2022 GBP (£) ProductLiabilityAction | |
SFRTI indemnity | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Amount of damages related to litigation | $ 4,653,009 | £ 3,868,159 |
Competition investigations | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Penalty due | $ | $ 110,000,000 | |
Loews | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Loss contingency number of indemnity cases pending | ProductLiabilityAction | 3 | 3 |
Contingent liabilities and f_16
Contingent liabilities and financial commitments - Tax Disputes - Additional Information (Details) ج.م. in Millions, £ in Millions, R$ in Millions, ₩ in Billions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2022 GBP (£) | Jun. 30, 2022 EGP (ج.م.) | Jun. 30, 2022 GBP (£) Case | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 GBP (£) | Dec. 31, 2017 GBP (£) | Dec. 31, 2015 | Dec. 31, 2022 BRL (R$) | Aug. 23, 2019 GBP (£) | Dec. 31, 2016 GBP (£) | Dec. 31, 2016 KRW (₩) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Income taxes paid, classified as operating activities | £ 2,537 | £ 2,314 | £ 2,132 | |||||||||
Brazil | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Reassessment, statute of limitation period | 5 years | |||||||||||
Brazil | Tax reassessment | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | 131 | R$ 833 | ||||||||||
Brazil | Tax reassessment | Souza Cruz | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | 302 | R$ 1919 | ||||||||||
Netherlands | Tax reassessment | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | 1,221 | |||||||||||
Netherlands | Tax reassessment | Case 1 | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | 285 | |||||||||||
Netherlands | Tax reassessment | Case 2 | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | £ 936 | |||||||||||
Bangladesh | Tax assessment | BAT Bangladesh | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Un-paid VAT and Supplementary Duty amount | £ 210 | |||||||||||
Egypt | Tax reassessment | British American Tobacco Egypt LLC | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | £ 88 | £ 88 | ||||||||||
Income taxes paid, classified as operating activities | £ 50 | ج.م. 1,183 | ||||||||||
Egypt | Tax assessment | British American Tobacco Egypt LLC | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Number of ongoing civil cases | Case | 2 | |||||||||||
Egypt | Tax and penalties | British American Tobacco Egypt LLC | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Reduction of penalties | 65% | |||||||||||
South Korea | Tax assessment | BAT Korea | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | £ 50 | ₩ 80.7 | ||||||||||
South Korea | Tax assessment | BAT Korea | VAT | ||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||
Tax assessment amount | £ 4 |
Contingent liabilities and f_17
Contingent liabilities and financial commitments - Schedule of Total Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Finance Lease And Operating Lease By Lessee1 [Line Items] | ||
Total future minimum payments under non-cancellable service contracts | £ 111 | £ 127 |
Property, plant and equipment | ||
Disclosure Of Finance Lease And Operating Lease By Lessee1 [Line Items] | ||
Lease commitments for short-term leases for which recognition exemption has been used | 50 | 19 |
Property | ||
Disclosure Of Finance Lease And Operating Lease By Lessee1 [Line Items] | ||
Lease commitments for short-term leases for which recognition exemption has been used | 30 | 7 |
Within one year | ||
Disclosure Of Finance Lease And Operating Lease By Lessee1 [Line Items] | ||
Total future minimum payments under non-cancellable service contracts | 45 | 41 |
Between one and five years | ||
Disclosure Of Finance Lease And Operating Lease By Lessee1 [Line Items] | ||
Total future minimum payments under non-cancellable service contracts | 66 | 81 |
Beyond five years | ||
Disclosure Of Finance Lease And Operating Lease By Lessee1 [Line Items] | ||
Total future minimum payments under non-cancellable service contracts | £ 0 | £ 5 |
Interests in subsidiaries - Add
Interests in subsidiaries - Additional Information (Details) £ in Millions | 12 Months Ended | 132 Months Ended | |||
Dec. 31, 2022 GBP (£) shareholder | Dec. 31, 2021 GBP (£) | Dec. 31, 2020 | Dec. 31, 2011 | Dec. 31, 2021 GBP (£) | |
Disclosure of Significant Investments in Subsidiaries [Line Items] | |||||
Goodwill | £ 47,956 | £ 43,194 | £ 43,194 | ||
Trade and other payables | 11,393 | 10,559 | 10,559 | ||
Canada | |||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | |||||
Goodwill | £ 2,460 | £ 2,345 | 2,345 | ||
British American Tobacco Bangladesh Company Limited | |||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | |||||
Ownership held in non-controlling interest | 72.91% | 72.91% | 72.91% | ||
Imperial Tobacco Canada | |||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | |||||
Trade and other payables | £ 391 | £ 341 | 341 | ||
Imperial Tobacco Canada | Canada | |||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | |||||
Goodwill | £ 2,500 | £ 2,500 | £ 2,500 | ||
PT Bentoel Internasional Investama Tbk | |||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | |||||
Ownership held in non-controlling interest | 100% | 99% | 92% | ||
Percentage of total return swap of issued capital | 7% | ||||
Effective interest recognise of net assets | 99% | ||||
Acquisition percentage | 0.20% | 0.20% | |||
Cost of acquisition | £ 4 | £ 4 | |||
Number of shareholders | shareholder | 1,000 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | |||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 | |
Profit for the year | 6,846 | 6,974 | 6,564 | ||
– Attributable to non-controlling interests | 180 | 173 | 164 | ||
Total comprehensive income | 15,553 | 7,796 | 3,622 | ||
– Attributable to non-controlling interests | 183 | 174 | 148 | ||
Summary net assets: | |||||
Non-current assets | 138,137 | 124,558 | |||
Current assets | 15,409 | 12,807 | |||
Non-current liabilities | 59,983 | 54,820 | |||
Current liabilities | 17,853 | 15,144 | |||
Total equity | 75,710 | 67,401 | 62,955 | £ 64,160 | |
Net cash generated from operating activities | 10,394 | 9,717 | 9,786 | ||
Net cash used in investing activities | (705) | (1,140) | (783) | ||
Net cash used in financing activities | (8,878) | (8,749) | (7,897) | ||
Differences on exchange | 431 | (253) | (253) | ||
Increase/(decrease) in net cash and cash equivalents in the year | 874 | (425) | 853 | ||
Net cash and cash equivalents at 1 January | 2,463 | 2,888 | 2,035 | ||
Net cash and cash equivalents at 31 December | 3,337 | 2,463 | 2,888 | ||
British American Tobacco Bangladesh Company Limited | |||||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | |||||
Revenue | 732 | 640 | 553 | ||
Profit for the year | 153 | 127 | 101 | ||
– Attributable to non-controlling interests | 41 | 34 | 27 | ||
Total comprehensive income | 132 | 127 | 91 | ||
– Attributable to non-controlling interests | 36 | 34 | 25 | ||
Dividends paid and other appropriations made to non-controlling interests | (32) | (28) | (31) | ||
Summary net assets: | |||||
Non-current assets | 322 | 303 | 271 | ||
Current assets | 253 | 345 | 271 | ||
Non-current liabilities | 78 | 70 | 58 | ||
Current liabilities | 166 | 262 | 190 | ||
Total equity | 331 | 316 | 294 | ||
– Attributable to non-controlling interests | 90 | 86 | 80 | ||
Net cash generated from operating activities | 164 | 52 | 137 | ||
Net cash used in investing activities | (46) | (26) | (11) | ||
Net cash used in financing activities | (147) | (55) | (111) | ||
Differences on exchange | 4 | 0 | (1) | ||
Increase/(decrease) in net cash and cash equivalents in the year | (25) | (29) | 14 | ||
Net cash and cash equivalents at 1 January | 1 | 30 | 16 | ||
Net cash and cash equivalents at 31 December | £ (24) | £ 1 | £ 30 | ||
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Interests in subsidiaries - S_2
Interests in subsidiaries - Summary of Financial Information of Subsidiaries Subject to Significant Restrictions (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | ||
Non-current assets | £ 138,137 | £ 124,558 |
Current assets | 15,409 | 12,807 |
Non-current liabilities | (59,983) | (54,820) |
Current liabilities | (17,853) | (15,144) |
Imperial Tobacco Canada | ||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | ||
Non-current assets | 2,554 | 2,403 |
Current assets | 2,193 | 1,630 |
Non-current liabilities | (114) | (109) |
Current liabilities | (526) | (479) |
Net assets (liabilities) | £ 4,107 | £ 3,445 |
Interests in subsidiaries - S_3
Interests in subsidiaries - Summary of Breakdown of Current Assets (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Summarised Financial Information Of Subsidiaries Subject To Restrictions [Line Items] | ||
Cash and cash equivalents | £ 3,446 | £ 2,809 |
Inventories | 5,671 | 5,279 |
Investments held at fair value | 579 | 456 |
Total current assets | 15,409 | 12,807 |
Imperial Tobacco Canada | ||
Summarised Financial Information Of Subsidiaries Subject To Restrictions [Line Items] | ||
Cash and cash equivalents | 1,569 | 1,114 |
Inventories | 182 | 126 |
Investments held at fair value | 396 | 351 |
Other | 46 | 39 |
Total current assets | 2,193 | 1,630 |
Restricted cash and cash equivalents | £ 1,411 | £ 1,024 |
Summarised financial informat_3
Summarised financial information - Additional Information (Details) £ in Millions, $ in Millions, € in Billions | 12 Months Ended | ||||||
Sep. 27, 2021 EUR (€) BOND | Dec. 31, 2022 GBP (£) BOND | Dec. 31, 2022 USD ($) | Jul. 01, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Jul. 28, 2020 USD ($) | Jul. 17, 2019 USD ($) | |
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Bonds and notes | £ | £ 41,411 | £ 37,784 | |||||
Number of perpetual hybrid bonds issued | BOND | 2 | ||||||
Perpetual hybrid bonds | € | € 1 | ||||||
Contractual obligation | £ | £ 80 | £ 90 | |||||
Lorillard Inc | |||||||
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Unsecured notes | $ 40.9 | $ 40.9 | |||||
BAT p.l.c. | |||||||
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Number of perpetual hybrid bonds issued | BOND | 2 | ||||||
Perpetual hybrid bonds | € | € 1 | ||||||
Contractual obligation | £ | £ 0 | ||||||
Reynolds American Inc. | |||||||
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Unsecured notes | $ 7,700 | $ 7,700 | |||||
Outstanding long-term debt | 10% | 10% | |||||
Registered BATCAP Bonds in Connection with the Acquisition of RAI | |||||||
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Bonds Issued, registered portion | $ 11,000 | ||||||
Registered BATCAP bonds | |||||||
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Bonds and notes | $ 600 | $ 12,150 | |||||
Registered BATIF Bonds | |||||||
Disclosure Of Summarised Financial Information [Line Items] | |||||||
Bonds and notes | $ 2,500 |
Summarised financial informat_4
Summarised financial information - Summarised Financial Information of Income Statement (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | [1] | £ 27,655 | £ 25,684 | £ 25,776 |
Profit from operations | 10,523 | 10,234 | 9,962 | |
Net finance costs | (1,641) | (1,486) | (1,745) | |
Profit before taxation | 9,324 | 9,163 | 8,672 | |
Taxation on ordinary activities | (2,478) | (2,189) | (2,108) | |
Profit for the year | 6,846 | 6,974 | £ 6,564 | |
Registered BATCAP bonds | BAT p.l.c. | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Profit from operations | (115) | (111) | ||
Dividend income | 7,515 | 6,200 | ||
Net finance costs | 264 | 170 | ||
Profit before taxation | 7,664 | 6,259 | ||
Taxation on ordinary activities | (10) | 5 | ||
Profit for the year | 7,654 | 6,264 | ||
Registered BATCAP bonds | BAT p.l.c. | Transactions with non-issuer/non-guarantor subsidiaries | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 7,515 | 6,200 | ||
Net finance costs | 52 | (2) | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | (116) | (111) | ||
Registered BATCAP bonds | BATCAP | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Profit from operations | (1) | (1) | ||
Dividend income | 0 | 0 | ||
Net finance costs | (52) | (43) | ||
Profit before taxation | (53) | (44) | ||
Taxation on ordinary activities | (9) | 19 | ||
Profit for the year | (62) | (25) | ||
Registered BATCAP bonds | BATCAP | Transactions with non-issuer/non-guarantor subsidiaries | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance costs | 815 | 709 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | (1) | (1) | ||
Registered BATCAP bonds | BATIF | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Profit from operations | (2) | (2) | ||
Dividend income | 0 | 0 | ||
Net finance costs | 187 | 63 | ||
Profit before taxation | 185 | 61 | ||
Taxation on ordinary activities | (21) | 1 | ||
Profit for the year | 164 | 62 | ||
Registered BATCAP bonds | BATIF | Transactions with non-issuer/non-guarantor subsidiaries | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance costs | 732 | 370 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | (2) | (2) | ||
Registered BATCAP bonds | BATNF | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Profit from operations | 0 | 0 | ||
Dividend income | 0 | 0 | ||
Net finance costs | 0 | 1 | ||
Profit before taxation | 0 | 1 | ||
Taxation on ordinary activities | 0 | 0 | ||
Profit for the year | 0 | 1 | ||
Registered BATCAP bonds | BATNF | Transactions with non-issuer/non-guarantor subsidiaries | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance costs | 0 | 0 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | 0 | 0 | ||
Registered BATCAP bonds | RAI | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Profit from operations | 5 | 3 | ||
Dividend income | 4,835 | 4,827 | ||
Net finance costs | (500) | (421) | ||
Profit before taxation | 4,340 | 4,409 | ||
Taxation on ordinary activities | 110 | 97 | ||
Profit for the year | 4,450 | 4,506 | ||
Registered BATCAP bonds | RAI | Transactions with non-issuer/non-guarantor subsidiaries | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 4,835 | 4,827 | ||
Net finance costs | 25 | 28 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | 47 | 36 | ||
Registered BATCAP bonds | BATHTN | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Profit from operations | 1 | 0 | ||
Dividend income | 148 | 164 | ||
Net finance costs | 0 | 0 | ||
Profit before taxation | 149 | 164 | ||
Taxation on ordinary activities | 0 | 0 | ||
Profit for the year | 149 | 164 | ||
Registered BATCAP bonds | BATHTN | Transactions with non-issuer/non-guarantor subsidiaries | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 148 | 164 | ||
Net finance costs | 0 | 0 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | £ 0 | £ 0 | ||
[1]Revenue is net of duty, excise and other taxes of £38,527 million, £38,595 million and £39,172 million for the years ended 31 December 2022, 2021 and 2020, respectively. |
Summarised financial informat_5
Summarised financial information - Summarised Financial Information of Balance Sheet (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | £ 138,137 | £ 124,558 |
Current assets | 15,409 | 12,807 |
Non-current liabilities | 59,983 | 54,820 |
Non-current borrowings | 38,726 | 35,666 |
Current liabilities | 17,853 | 15,144 |
Current borrowings | 4,413 | 3,992 |
Registered BATCAP bonds | BAT p.l.c. | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | 1,917 | 1,916 |
Current assets | 9,166 | 8,443 |
Non-current liabilities | 1,580 | 9 |
Non-current borrowings | 1,572 | 0 |
Other non-current liabilities | 8 | 9 |
Current liabilities | 55 | 1,607 |
Current borrowings | 23 | 1,580 |
Other current liabilities | 32 | 27 |
Registered BATCAP bonds | BAT p.l.c. | Transactions with non-issuer/non-guarantor subsidiaries | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Amounts due from subsidiaries | 9,117 | 8,405 |
Amounts due to subsidiaries | 5 | 0 |
Investment in subsidiaries | 27,234 | 27,234 |
Registered BATCAP bonds | BATCAP | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | 20,962 | 18,192 |
Current assets | 7,947 | 3,583 |
Non-current liabilities | 20,018 | 17,024 |
Non-current borrowings | 19,762 | 16,965 |
Other non-current liabilities | 256 | 59 |
Current liabilities | 8,749 | 4,633 |
Current borrowings | 8,657 | 4,602 |
Other current liabilities | 92 | 31 |
Registered BATCAP bonds | BATCAP | Transactions with non-issuer/non-guarantor subsidiaries | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Amounts due from subsidiaries | 17,003 | 14,999 |
Amounts due to subsidiaries | 3,890 | 3,006 |
Investment in subsidiaries | 0 | 0 |
Registered BATCAP bonds | BATIF | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | 2,480 | 4,986 |
Current assets | 42,748 | 35,772 |
Non-current liabilities | 14,058 | 13,667 |
Non-current borrowings | 13,510 | 13,560 |
Other non-current liabilities | 548 | 107 |
Current liabilities | 29,379 | 25,451 |
Current borrowings | 28,525 | 25,081 |
Other current liabilities | 854 | 370 |
Registered BATCAP bonds | BATIF | Transactions with non-issuer/non-guarantor subsidiaries | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Amounts due from subsidiaries | 42,752 | 38,539 |
Amounts due to subsidiaries | 22,702 | 20,422 |
Investment in subsidiaries | 718 | 718 |
Registered BATCAP bonds | BATNF | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | 1,500 | 1,417 |
Current assets | 22 | 21 |
Non-current liabilities | 1,500 | 1,417 |
Non-current borrowings | 1,500 | 1,417 |
Other non-current liabilities | 0 | 0 |
Current liabilities | 21 | 20 |
Current borrowings | 21 | 20 |
Other current liabilities | 0 | 0 |
Registered BATCAP bonds | BATNF | Transactions with non-issuer/non-guarantor subsidiaries | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Amounts due from subsidiaries | 0 | 0 |
Amounts due to subsidiaries | 0 | 0 |
Investment in subsidiaries | 0 | 0 |
Registered BATCAP bonds | RAI | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | 405 | 357 |
Current assets | 1,135 | 1,033 |
Non-current liabilities | 10,094 | 8,778 |
Non-current borrowings | 10,033 | 8,719 |
Other non-current liabilities | 61 | 59 |
Current liabilities | 1,011 | 882 |
Current borrowings | 568 | 263 |
Other current liabilities | 443 | 619 |
Registered BATCAP bonds | RAI | Transactions with non-issuer/non-guarantor subsidiaries | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Amounts due from subsidiaries | 700 | 1,360 |
Amounts due to subsidiaries | 34 | 48 |
Investment in subsidiaries | 26,690 | 23,643 |
Registered BATCAP bonds | BATHTN | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Non-current assets | 45 | 75 |
Current assets | 8 | 19 |
Non-current liabilities | 12 | 19 |
Non-current borrowings | 0 | 0 |
Other non-current liabilities | 12 | 19 |
Current liabilities | 1 | 10 |
Current borrowings | 1 | 10 |
Other current liabilities | 0 | 0 |
Registered BATCAP bonds | BATHTN | Transactions with non-issuer/non-guarantor subsidiaries | ||
Disclosure Of Summarised Financial Information [Line Items] | ||
Amounts due from subsidiaries | 8 | 19 |
Amounts due to subsidiaries | 1 | 9 |
Investment in subsidiaries | £ 1,573 | £ 1,488 |
Summarised financial informat_6
Summarised financial information - Summary of Unconsolidated Equity Results (Details) - GBP (£) £ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Summarised Financial Information [Line Items] | ||||
Total equity | £ 75,710 | £ 67,401 | £ 62,955 | £ 64,160 |
Share capital | 614 | 614 | ||
Perpetual hybrid bonds | 1,685 | 1,685 | ||
BAT p.l.c. | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Total equity | 36,682 | 35,977 | ||
Share capital | 614 | 614 | ||
Share premium | 113 | 107 | ||
Perpetual hybrid bonds | 1,685 | 1,685 | ||
Other equity | £ 34,270 | £ 33,571 |
Uncategorized Items - bti-20221
Label | Element | Value |
Headline Earnings Diluted | bti_HeadlineEarningsDiluted | £ 7,499,000,000 |
Headline Earnings Diluted | bti_HeadlineEarningsDiluted | 7,243,000,000 |
Headline Earnings Diluted | bti_HeadlineEarningsDiluted | £ 6,756,000,000 |
Headline Earnings Per Share Basic Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareBasicTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 0.002 |
Headline Earnings Per Share Basic Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareBasicTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 0.001 |
Headline Earnings Per Share Basic Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareBasicTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 0.003 |
Headline Earnings Per Share Diluted | bti_HeadlineEarningsPerShareDiluted | 3.308 |
Headline Earnings Per Share Diluted | bti_HeadlineEarningsPerShareDiluted | 3.153 |
Headline Earnings Per Share Diluted | bti_HeadlineEarningsPerShareDiluted | £ 2.944 |
Headline Earnings Basic Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsBasicTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 2,000,000 |
Headline Earnings Basic Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsBasicTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 8,000,000 |
Headline Earnings Basic Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsBasicTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 5,000,000 |
Headline Earnings Diluted Issue Of Shares And Change In Share Holding In Associate | bti_HeadlineEarningsDilutedIssueOfSharesAndChangeInShareHoldingInAssociate | (3,000,000) |
Headline Earnings Diluted Issue Of Shares And Change In Share Holding In Associate | bti_HeadlineEarningsDilutedIssueOfSharesAndChangeInShareHoldingInAssociate | 6,000,000 |
Headline Earnings Diluted Issue Of Shares And Change In Share Holding In Associate | bti_HeadlineEarningsDilutedIssueOfSharesAndChangeInShareHoldingInAssociate | 17,000,000 |
Headline Earnings Basic Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsBasicEffectOfImpairmentOfSubsidiaries | 548,000,000 |
Headline Earnings Basic Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsBasicEffectOfImpairmentOfSubsidiaries | 83,000,000 |
Headline Earnings Basic Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsBasicEffectOfImpairmentOfSubsidiaries | £ 0 |
Headline Earnings Per Share Diluted Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsPerShareDilutedIssueOfSharesAndChangeInShareholdingInAssociate | £ 0.001 |
Headline Earnings Per Share Diluted Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsPerShareDilutedIssueOfSharesAndChangeInShareholdingInAssociate | (0.003) |
Headline Earnings Per Share Diluted Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsPerShareDilutedIssueOfSharesAndChangeInShareholdingInAssociate | (0.007) |
Headline Earnings Per Share Basic Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareBasicEffectOfImpairmentOfSubsidiaries | 0.242 |
Headline Earnings Per Share Basic Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareBasicEffectOfImpairmentOfSubsidiaries | 0.036 |
Headline Earnings Per Share Basic Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareBasicEffectOfImpairmentOfSubsidiaries | 0 |
Headline Earnings Per Share Diluted Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareDilutedTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Per Share Diluted Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareDilutedTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Per Share Diluted Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareDilutedTaxEffectOnImpairmentOfSubsidiaries | £ (0.004) |
Headline Earnings Diluted Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsDilutedTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 8,000,000 |
Headline Earnings Diluted Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsDilutedTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 5,000,000 |
Headline Earnings Diluted Tax And Non Controlling Interests On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsDilutedTaxAndNonControllingInterestsOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 2,000,000 |
Headline Earnings Per Share Basic Tax And Noncontrolling Interests Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareBasicTaxAndNoncontrollingInterestsOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ (0.034) |
Headline Earnings Per Share Basic Tax And Noncontrolling Interests Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareBasicTaxAndNoncontrollingInterestsOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | (0.018) |
Headline Earnings Per Share Basic Tax And Noncontrolling Interests Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareBasicTaxAndNoncontrollingInterestsOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | (0.033) |
Headline Earnings Per Share Diluted Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareDilutedTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | (0.033) |
Headline Earnings Per Share Diluted Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareDilutedTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | (0.034) |
Headline Earnings Per Share Diluted Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareDilutedTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ (0.018) |
Headline Earnings Basic Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsBasicIssueOfSharesAndChangeInShareholdingInAssociate | £ 6,000,000 |
Headline Earnings Basic Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsBasicIssueOfSharesAndChangeInShareholdingInAssociate | 17,000,000 |
Headline Earnings Basic Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsBasicIssueOfSharesAndChangeInShareholdingInAssociate | (3,000,000) |
Headline Earnings Diluted Effect Of Impairment Of Intangibles Property Plant And Equipment And Associates Assets Held For Sale | bti_HeadlineEarningsDilutedEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAndAssociatesAssetsHeldForSale | 429,000,000 |
Headline Earnings Diluted Effect Of Impairment Of Intangibles Property Plant And Equipment And Associates Assets Held For Sale | bti_HeadlineEarningsDilutedEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAndAssociatesAssetsHeldForSale | 138,000,000 |
Headline Earnings Diluted Effect Of Impairment Of Intangibles Property Plant And Equipment And Associates Assets Held For Sale | bti_HeadlineEarningsDilutedEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAndAssociatesAssetsHeldForSale | 465,000,000 |
Headline Earnings Basic Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsBasicTaxEffectOnImpairmentOfSubsidiaries | 10,000,000 |
Headline Earnings Basic Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsBasicTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Basic Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsBasicTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Diluted Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsDilutedTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Diluted Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsDilutedTaxEffectOnImpairmentOfSubsidiaries | 10,000,000 |
Headline Earnings Diluted Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsDilutedTaxEffectOnImpairmentOfSubsidiaries | £ 0 |
Headline Earnings Per Share Diluted Tax And N C I On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareDilutedTaxAndNCIOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 0.003 |
Headline Earnings Per Share Diluted Tax And N C I On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareDilutedTaxAndNCIOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 0.002 |
Headline Earnings Per Share Diluted Tax And N C I On Disposal Of Property Plant And Equipment Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareDilutedTaxAndNCIOnDisposalOfPropertyPlantAndEquipmentHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 0.001 |
Headline Earnings Diluted Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsDilutedEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 21,000,000 |
Headline Earnings Diluted Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsDilutedEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 10,000,000 |
Headline Earnings Diluted Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsDilutedEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 26,000,000 |
Headline Earnings Per Share Diluted Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareDilutedEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ 0.189 |
Headline Earnings Per Share Diluted Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareDilutedEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 0.060 |
Headline Earnings Per Share Diluted Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareDilutedEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ 0.203 |
Headline Earnings Basic Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsBasicTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ 42,000,000 |
Headline Earnings Basic Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsBasicTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 74,000,000 |
Headline Earnings Basic Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsBasicTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ 77,000,000 |
Headline Earnings Per Share Basic Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareBasicTaxEffectOnImpairmentOfSubsidiaries | £ (0.004) |
Headline Earnings Per Share Basic Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareBasicTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Per Share Basic Tax Effect On Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareBasicTaxEffectOnImpairmentOfSubsidiaries | 0 |
Headline Earnings Per Share Basic Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsPerShareBasicIssueOfSharesAndChangeInShareholdingInAssociate | (0.003) |
Headline Earnings Per Share Basic Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsPerShareBasicIssueOfSharesAndChangeInShareholdingInAssociate | (0.007) |
Headline Earnings Per Share Basic Issue Of Shares And Change In Shareholding In Associate | bti_HeadlineEarningsPerShareBasicIssueOfSharesAndChangeInShareholdingInAssociate | £ 0.001 |
Headline Earnings Diluted Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsDilutedEffectOfImpairmentOfSubsidiaries | £ 548,000,000 |
Headline Earnings Diluted Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsDilutedEffectOfImpairmentOfSubsidiaries | 83,000,000 |
Headline Earnings Diluted Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsDilutedEffectOfImpairmentOfSubsidiaries | £ 0 |
Headline Earnings Per Share Diluted Effect Of Losses Gains On Disposal Of Property Plant & Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareDilutedEffectOfLossesGainsOnDisposalOfPropertyPlantEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ (0.009) |
Headline Earnings Per Share Diluted Effect Of Losses Gains On Disposal Of Property Plant & Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareDilutedEffectOfLossesGainsOnDisposalOfPropertyPlantEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | (0.004) |
Headline Earnings Per Share Diluted Effect Of Losses Gains On Disposal Of Property Plant & Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareDilutedEffectOfLossesGainsOnDisposalOfPropertyPlantEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | (0.011) |
Headline Earnings Per Share Diluted Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareDilutedEffectOfImpairmentOfSubsidiaries | 0.241 |
Headline Earnings Per Share Diluted Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareDilutedEffectOfImpairmentOfSubsidiaries | 0.036 |
Headline Earnings Per Share Diluted Effect Of Impairment Of Subsidiaries | bti_HeadlineEarningsPerShareDilutedEffectOfImpairmentOfSubsidiaries | £ 0 |
Headline Earnings Basic | bti_HeadlineEarningsBasic | £ (7,499,000,000) |
Headline Earnings Basic | bti_HeadlineEarningsBasic | 7,243,000,000 |
Headline Earnings Basic | bti_HeadlineEarningsBasic | 6,756,000,000 |
Headline Earnings Basic Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsBasicEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 429,000,000 |
Headline Earnings Basic Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsBasicEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 138,000,000 |
Headline Earnings Basic Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsBasicEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 465,000,000 |
Headline Earnings Basic Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsBasicEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 21,000,000 |
Headline Earnings Basic Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsBasicEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | 10,000,000 |
Headline Earnings Basic Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsBasicEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ 26,000,000 |
Headline Earnings Per Share Basic | bti_HeadlineEarningsPerShareBasic | £ 3.324 |
Headline Earnings Per Share Basic | bti_HeadlineEarningsPerShareBasic | 3.167 |
Headline Earnings Per Share Basic | bti_HeadlineEarningsPerShareBasic | 2.955 |
Headline Earnings Per Share Basic Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareBasicEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 0.190 |
Headline Earnings Per Share Basic Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareBasicEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 0.060 |
Headline Earnings Per Share Basic Effect Of Impairment Of Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsPerShareBasicEffectOfImpairmentOfIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 0.203 |
Headline Earnings Per Share Basic Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareBasicEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | (0.009) |
Headline Earnings Per Share Basic Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareBasicEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | (0.004) |
Headline Earnings Per Share Basic Effect Of Losses Gains On Disposal Of Property Plant And Equipment Trademarks Held For Sale Assets Partial Full Termination Of I F R S16 Leases And Sale And Leaseback | bti_HeadlineEarningsPerShareBasicEffectOfLossesGainsOnDisposalOfPropertyPlantAndEquipmentTrademarksHeldForSaleAssetsPartialFullTerminationOfIFRS16LeasesAndSaleAndLeaseback | £ (0.011) |
Headline Earnings Diluted Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsDilutedTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | £ 77,000,000 |
Headline Earnings Diluted Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsDilutedTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 42,000,000 |
Headline Earnings Diluted Tax And Noncontrolling Interests On Intangibles Property Plant And Equipment Associates And Assets Held For Sale | bti_HeadlineEarningsDilutedTaxAndNoncontrollingInterestsOnIntangiblesPropertyPlantAndEquipmentAssociatesAndAssetsHeldForSale | 74,000,000 |
Associates [member] | ||
Headline Earnings Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | (1,000,000) |
Headline Earnings Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | (2,000,000) |
Headline Earnings Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Per Share Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Per Share Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | (0.001) |
Headline Earnings Per Share Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ (1,000,000) |
Headline Earnings Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | (2,000,000) |
Headline Earnings Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Per Share Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Per Share Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | (0.001) |
Headline Earnings Per Share Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Subsidiaries [member] | ||
Headline Earnings Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 6,000,000 |
Headline Earnings Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | 291,000,000 |
Headline Earnings Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Per Share Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0.003 |
Headline Earnings Per Share Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | 0.126 |
Headline Earnings Per Share Diluted Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareDilutedEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0 |
Headline Earnings Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 291,000,000 |
Headline Earnings Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | 0 |
Headline Earnings Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 6,000,000 |
Headline Earnings Per Share Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0.127 |
Headline Earnings Per Share Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | 0 |
Headline Earnings Per Share Basic Effect Of Foreign Exchange Reclassification From Reserves To Income Statement | bti_HeadlineEarningsPerShareBasicEffectOfForeignExchangeReclassificationFromReservesToIncomeStatement | £ 0.003 |