Note 17 — RAI Guaranteed, Unsecured Notes — Condensed Consolidating Financial Statements
The following condensed consolidating financial statements relate to the guaranties of RAI’s $5.1 billion unsecured notes. See note 10 for additional information relating to these notes. Certain of RAI’s direct, wholly owned subsidiaries and certain of its indirectly owned subsidiaries have fully and unconditionally, and jointly and severally, guaranteed these notes. The following condensed consolidating financial statements include: the accounts and activities of RAI, the parent issuer; RJR, RJR Tobacco, American Snuff Co., SFNTC and certain of RAI’s other subsidiaries, the Guarantors; other direct and indirect subsidiaries of RAI that are not Guarantors; and elimination adjustments.
Condensed Consolidating Statements of Income
(Dollars in Millions)
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||
|
For the Year Ended December 31, 2013 |
||||||||||||||||||||
|
Net sales |
$ | — | $ | 7,785 | $ | 147 | $ | (33 | ) | $ | 7,899 | |||||||||
|
Net sales, related party |
— | 337 | — | — | 337 | |||||||||||||||
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|
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|
|||||||||||
|
Net Sales |
— | 8,122 | 147 | (33 | ) | 8,236 | ||||||||||||||
|
Cost of products sold |
— | 3,628 | 83 | (33 | ) | 3,678 | ||||||||||||||
|
Selling, general and administrative expenses |
13 | 1,222 | 154 | — | 1,389 | |||||||||||||||
|
Amortization expense |
— | 5 | — | — | 5 | |||||||||||||||
|
Trademark and other intangible asset impairment charges |
— | 32 | — | — | 32 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Operating income (loss) |
(13 | ) | 3,235 | (90 | ) | — | 3,132 | |||||||||||||
|
Interest and debt expense |
255 | 113 | 2 | (111 | ) | 259 | ||||||||||||||
|
Interest income |
(111 | ) | (3 | ) | (2 | ) | 111 | (5 | ) | |||||||||||
|
Other expense (income), net |
129 | (45 | ) | 10 | 43 | 137 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Income (loss) before income taxes |
(286 | ) | 3,170 | (100 | ) | (43 | ) | 2,741 | ||||||||||||
|
Provision for (benefit from) income taxes |
(95 | ) | 1,154 | (36 | ) | — | 1,023 | |||||||||||||
|
Equity income from subsidiaries |
1,909 | 5 | — | (1,914 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net income (loss) |
$ | 1,718 | $ | 2,021 | $ | (64 | ) | $ | (1,957 | ) | $ | 1,718 | ||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||
|
For the Year Ended December 31, 2012 |
||||||||||||||||||||
|
Net sales |
$ | — | $ | 7,857 | $ | 134 | $ | (29 | ) | $ | 7,962 | |||||||||
|
Net sales, related party |
— | 342 | — | — | 342 | |||||||||||||||
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|
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|
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|
Net Sales |
— | 8,199 | 134 | (29 | ) | 8,304 | ||||||||||||||
|
Cost of products sold |
— | 4,316 | 34 | (29 | ) | 4,321 | ||||||||||||||
|
Selling, general and administrative expenses |
23 | 1,341 | 106 | — | 1,470 | |||||||||||||||
|
Amortization expense |
— | 21 | — | — | 21 | |||||||||||||||
|
Restructuring charge |
4 | 145 | — | — | 149 | |||||||||||||||
|
Trademark and other intangible asset impairment charges |
— | 82 | 47 | — | 129 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Operating income (loss) |
(27 | ) | 2,294 | (53 | ) | — | 2,214 | |||||||||||||
|
Interest and debt expense |
228 | 119 | — | (113 | ) | 234 | ||||||||||||||
|
Interest income |
(113 | ) | (3 | ) | (4 | ) | 113 | (7 | ) | |||||||||||
|
Other expense (income), net |
26 | (44 | ) | 9 | 43 | 34 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Income (loss) before income taxes |
(168 | ) | 2,222 | (58 | ) | (43 | ) | 1,953 | ||||||||||||
|
Provision for (benefit from) income taxes |
(59 | ) | 762 | (21 | ) | (1 | ) | 681 | ||||||||||||
|
Equity income (loss) from subsidiaries |
1,381 | (16 | ) | — | (1,365 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net income (loss) |
$ | 1,272 | $ | 1,444 | $ | (37 | ) | $ | (1,407 | ) | $ | 1,272 | ||||||||
|
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|
|
|
|
|
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|
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|
For the Year Ended December 31, 2011 |
||||||||||||||||||||
|
Net sales |
$ | — | $ | 7,971 | $ | 116 | $ | (25 | ) | $ | 8,062 | |||||||||
|
Net sales, related party |
— | 479 | — | — | 479 | |||||||||||||||
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|
|||||||||||
|
Net Sales |
— | 8,450 | 116 | (25 | ) | 8,541 | ||||||||||||||
|
Cost of products sold |
— | 4,460 | 29 | (25 | ) | 4,464 | ||||||||||||||
|
Selling, general and administrative expenses |
129 | 1,386 | 91 | — | 1,606 | |||||||||||||||
|
Amortization expense |
— | 24 | — | — | 24 | |||||||||||||||
|
Trademark impairment charges |
— | 48 | — | — | 48 | |||||||||||||||
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|
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|
|
|
|
|
|||||||||||
|
Operating income (loss) |
(129 | ) | 2,532 | (4 | ) | — | 2,399 | |||||||||||||
|
Interest and debt expense |
213 | 125 | — | (117 | ) | 221 | ||||||||||||||
|
Interest income |
(118 | ) | (4 | ) | (6 | ) | 117 | (11 | ) | |||||||||||
|
Other expense (income), net |
8 | (47 | ) | (1 | ) | 43 | 3 | |||||||||||||
|
|
|
|
|
|
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|
|||||||||||
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Income (loss) before income taxes |
(232 | ) | 2,458 | 3 | (43 | ) | 2,186 | |||||||||||||
|
Provision for (benefit from) income taxes |
(89 | ) | 875 | (6 | ) | — | 780 | |||||||||||||
|
Equity income from subsidiaries |
1,549 | 20 | — | (1,569 | ) | — | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||
|
Net income |
$ | 1,406 | $ | 1,603 | $ | 9 | $ | (1,612 | ) | $ | 1,406 | |||||||||
|
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|
|
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Condensed Consolidating Statements of Comprehensive Income
(Dollars in Millions)
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||
|
For the Year Ended December 31, 2013 |
||||||||||||||||||||
|
Net income (loss) |
$ | 1,718 | $ | 2,021 | $ | (64 | ) | $ | (1,957 | ) | $ | 1,718 | ||||||||
|
Other comprehensive income (loss), net of tax: |
||||||||||||||||||||
|
Retirement benefits |
248 | 239 | (1 | ) | (238 | ) | 248 | |||||||||||||
|
Unrealized gain on long-term investments |
5 | 5 | — | (5 | ) | 5 | ||||||||||||||
|
Realized loss on hedging instruments |
1 | — | — | — | 1 | |||||||||||||||
|
Cumulative translation adjustment and other |
1 | 1 | 14 | (15 | ) | 1 | ||||||||||||||
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|
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Comprehensive income (loss) |
$ | 1,973 | $ | 2,266 | $ | (51 | ) | $ | (2,215 | ) | $ | 1,973 | ||||||||
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|
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|
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|
|||||||||||
|
For the Year Ended December 31, 2012 |
||||||||||||||||||||
|
Net income (loss) |
$ | 1,272 | $ | 1,444 | $ | (37 | ) | $ | (1,407 | ) | $ | 1,272 | ||||||||
|
Other comprehensive income (loss), net of tax: |
||||||||||||||||||||
|
Retirement benefits |
65 | 65 | — | (65 | ) | 65 | ||||||||||||||
|
Unrealized gain on long-term investments |
7 | 7 | — | (7 | ) | 7 | ||||||||||||||
|
Realized loss on hedging instruments |
(14 | ) | — | — | — | (14 | ) | |||||||||||||
|
Cumulative translation adjustment and other |
13 | 13 | 9 | (22 | ) | 13 | ||||||||||||||
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|
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|
|
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|
|||||||||||
|
Comprehensive income (loss) |
$ | 1,343 | $ | 1,529 | $ | (28 | ) | $ | (1,501 | ) | $ | 1,343 | ||||||||
|
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|
|
|
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|
|
|
|||||||||||
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For the Year Ended December 31, 2011 |
||||||||||||||||||||
|
Net income |
$ | 1,406 | $ | 1,603 | $ | 9 | $ | (1,612 | ) | $ | 1,406 | |||||||||
|
Other comprehensive income (loss), net of tax: |
||||||||||||||||||||
|
Retirement benefits |
(144 | ) | (141 | ) | 6 | 135 | (144 | ) | ||||||||||||
|
Unrealized loss on long-term investments |
(12 | ) | (12 | ) | — | 12 | (12 | ) | ||||||||||||
|
Cumulative translation adjustment and other |
(8 | ) | (8 | ) | (11 | ) | 19 | (8 | ) | |||||||||||
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Comprehensive income |
$ | 1,242 | $ | 1,442 | $ | 4 | $ | (1,446 | ) | $ | 1,242 | |||||||||
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Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statements of income for the year ended December 31, 2013, were as follows:
|
Components |
Amount Reclassified |
Affected Line Item |
||||||||||||||||||||
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||||
|
Defined benefit pension and postretirement plans: |
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|
Amortization of prior service costs |
$ | (21 | ) | $ | (21 | ) | $ | — | $ | 21 | $ | (21 | ) | Cost of products sold | ||||||||
| (18 | ) | (18 | ) | — | 18 | (18 | ) | Selling, general and administrative expenses | ||||||||||||||
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Amortization of prior service costs |
(39 | ) | (39 | ) | — | 39 | (39 | ) | ||||||||||||||
|
Deferred taxes |
16 | 16 | — | (16 | ) | 16 | Provision for income taxes | |||||||||||||||
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|
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|
|
|
|
|
|
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|
Net of tax |
$ | (23 | ) | $ | (23 | ) | $ | — | $ | 23 | $ | (23 | ) | |||||||||
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Loss on hedging instruments: |
||||||||||||||||||||||
|
Amortization of realized loss |
$ | 2 | $ | — | $ | — | $ | — | $ | 2 | Interest and debt expense | |||||||||||
|
Deferred taxes |
(1 | ) | — | — | — | (1 | ) | Provision for income taxes | ||||||||||||||
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|
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Net of tax |
$ | 1 | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||
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Total reclassifications |
$ | (22 | ) | $ | (23 | ) | $ | — | $ | 23 | $ | (22 | ) | Net income | ||||||||
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Condensed Consolidating Statements of Cash Flows
(Dollars in Millions)
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||
|
For the Year Ended December 31, 2013 |
||||||||||||||||||||
|
Cash flows from (used in) operating activities |
$ | 1,519 | $ | 945 | $ | (70 | ) | $ | (1,086 | ) | $ | 1,308 | ||||||||
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Cash flows from (used in) investing activities: |
||||||||||||||||||||
|
Capital expenditures |
— | (80 | ) | (74 | ) | 1 | (153 | ) | ||||||||||||
|
Proceeds from termination of joint venture |
— | — | 31 | — | 31 | |||||||||||||||
|
Return of intercompany investments |
300 | — | — | (300 | ) | — | ||||||||||||||
|
Other, net |
81 | 33 | (1 | ) | (104 | ) | 9 | |||||||||||||
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|
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Net cash flows from (used in) investing activities |
381 | (47 | ) | (44 | ) | (403 | ) | (113 | ) | |||||||||||
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Cash flows from (used in) financing activities: |
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|
Dividends paid on common stock |
(1,335 | ) | (1,042 | ) | — | 1,042 | (1,335 | ) | ||||||||||||
|
Repurchase of common stock |
(775 | ) | — | — | — | (775 | ) | |||||||||||||
|
Excess tax benefit on stock-based compensation plans |
14 | — | — | — | 14 | |||||||||||||||
|
Principal borrowings under term loan credit facility |
500 | — | — | — | 500 | |||||||||||||||
|
Repayment of term loan credit facility |
(500 | ) | — | — | — | (500 | ) | |||||||||||||
|
Proceeds from issuance of long-term debt, net of discounts |
1,097 | — | — | — | 1,097 | |||||||||||||||
|
Repayments of long-term debt |
(975 | ) | (60 | ) | — | — | (1,035 | ) | ||||||||||||
|
Debt issuance costs and financing fees |
(18 | ) | — | — | — | (18 | ) | |||||||||||||
|
Dividends paid on preferred stock |
(43 | ) | — | — | 43 | — | ||||||||||||||
|
Distribution of equity |
— | (300 | ) | — | 300 | — | ||||||||||||||
|
Make-whole premium for early extinguishment of debt |
(155 | ) | — | — | — | (155 | ) | |||||||||||||
|
Other, net |
(21 | ) | (220 | ) | 137 | 104 | — | |||||||||||||
|
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|
|
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|
|
|
|
|||||||||||
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Net cash flows from (used in) financing activities |
(2,211 | ) | (1,622 | ) | 137 | 1,489 | (2,207 | ) | ||||||||||||
|
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|
|||||||||||
|
Effect of exchange rate changes on cash and cash equivalents |
— | — | 10 | — | 10 | |||||||||||||||
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|
|||||||||||
|
Net change in cash and cash equivalents |
(311 | ) | (724 | ) | 33 | — | (1,002 | ) | ||||||||||||
|
Cash and cash equivalents at beginning of year |
755 | 1,420 | 327 | — | 2,502 | |||||||||||||||
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Cash and cash equivalents at end of year |
$ | 444 | $ | 696 | $ | 360 | $ | — | $ | 1,500 | ||||||||||
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|
For the Year Ended December 31, 2012 |
||||||||||||||||||||
|
Cash flows from operating activities |
$ | 454 | $ | 1,801 | $ | 29 | $ | (716 | ) | $ | 1,568 | |||||||||
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|
|||||||||||
|
Cash flows from (used in) investing activities: |
||||||||||||||||||||
|
Capital expenditures |
— | (79 | ) | (1 | ) | (8 | ) | (88 | ) | |||||||||||
|
Proceeds from termination of joint venture |
— | — | 30 | — | 30 | |||||||||||||||
|
Return of intercompany investments |
898 | — | — | (898 | ) | — | ||||||||||||||
|
Other, net |
40 | 17 | 1 | (54 | ) | 4 | ||||||||||||||
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|
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|
Net cash flows from (used in) investing activities |
938 | (62 | ) | 30 | (960 | ) | (54 | ) | ||||||||||||
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|
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|
Cash flows from (used in) financing activities: |
||||||||||||||||||||
|
Dividends paid on common stock |
(1,307 | ) | (684 | ) | — | 684 | (1,307 | ) | ||||||||||||
|
Repurchase of common stock |
(1,101 | ) | — | — | — | (1,101 | ) | |||||||||||||
|
Excess tax benefit on stock-based compensation plans |
39 | — | — | — | 39 | |||||||||||||||
|
Principal borrowings under term loan credit facility |
750 | — | — | — | 750 | |||||||||||||||
|
Repayment of term loan credit facility |
(750 | ) | — | — | — | (750 | ) | |||||||||||||
|
Proceeds from issuance of long-term debt, net of discounts |
2,539 | — | — | — | 2,539 | |||||||||||||||
|
Repayments of long-term debt |
(1,018 | ) | (58 | ) | — | — | (1,076 | ) | ||||||||||||
|
Debt issuance costs and financing fees |
(22 | ) | — | — | — | (22 | ) | |||||||||||||
|
Payment to settle forward starting interest rate contracts |
(23 | ) | — | — | — | (23 | ) | |||||||||||||
|
Dividends paid on preferred stock |
(43 | ) | — | — | 43 | — | ||||||||||||||
|
Distribution of equity |
— | (898 | ) | — | 898 | — | ||||||||||||||
|
Other, net |
(29 | ) | (40 | ) | (2 | ) | 51 | (20 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net cash flows used in financing activities |
(965 | ) | (1,680 | ) | (2 | ) | 1,676 | (971 | ) | |||||||||||
|
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|
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|
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|
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|
|||||||||||
|
Effect of exchange rate changes on cash and cash equivalents |
— | — | 3 | — | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net change in cash and cash equivalents |
427 | 59 | 60 | — | 546 | |||||||||||||||
|
Cash and cash equivalents at beginning of year |
328 | 1,361 | 267 | — | 1,956 | |||||||||||||||
|
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|
|
|
|
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|
Cash and cash equivalents at end of year |
$ | 755 | $ | 1,420 | $ | 327 | $ | — | $ | 2,502 | ||||||||||
|
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|||||||||||
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||
|
For the Year Ended December 31, 2011 |
||||||||||||||||||||
|
Cash flows from (used in) operating activities |
$ | 641 | $ | 1,571 | $ | (3 | ) | $ | (789 | ) | $ | 1,420 | ||||||||
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|
Cash flows from (used in) investing activities: |
||||||||||||||||||||
|
Capital expenditures |
— | (190 | ) | — | — | (190 | ) | |||||||||||||
|
Net proceeds from sale of business |
79 | 123 | — | — | 202 | |||||||||||||||
|
Proceeds from termination of joint venture |
— | — | 32 | — | 32 | |||||||||||||||
|
Return of intercompany investments |
1,040 | — | — | (1,040 | ) | — | ||||||||||||||
|
Other, net |
40 | 60 | — | (84 | ) | 16 | ||||||||||||||
|
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|
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|
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|
Net cash flows from (used in) investing activities |
1,159 | (7 | ) | 32 | (1,124 | ) | 60 | |||||||||||||
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|
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|
Cash flows from (used in) financing activities: |
||||||||||||||||||||
|
Dividends paid on common stock |
(1,212 | ) | (740 | ) | (6 | ) | 746 | (1,212 | ) | |||||||||||
|
Repurchase of common stock |
(282 | ) | — | — | — | (282 | ) | |||||||||||||
|
Excess tax benefit on stock-based compensation plans |
1 | — | — | — | 1 | |||||||||||||||
|
Repayments of long-term debt |
(400 | ) | — | — | — | (400 | ) | |||||||||||||
|
Debt issuance costs and financing fees |
(7 | ) | — | — | — | (7 | ) | |||||||||||||
|
Proceeds from termination of interest rate swaps |
185 | 1 | — | — | 186 | |||||||||||||||
|
Dividends paid on preferred stock |
(43 | ) | — | — | 43 | — | ||||||||||||||
|
Distribution of equity |
— | (1,040 | ) | — | 1,040 | — | ||||||||||||||
|
Other, net |
(41 | ) | (40 | ) | (3 | ) | 84 | — | ||||||||||||
|
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|
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Net cash flows used in financing activities |
(1,799 | ) | (1,819 | ) | (9 | ) | 1,913 | (1,714 | ) | |||||||||||
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|
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Effect of exchange rate changes on cash and cash equivalents |
— | — | (5 | ) | — | (5 | ) | |||||||||||||
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|
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Net change in cash and cash equivalents |
1 | (255 | ) | 15 | — | (239 | ) | |||||||||||||
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Cash and cash equivalents at beginning of year |
327 | 1,616 | 252 | — | 2,195 | |||||||||||||||
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Cash and cash equivalents at end of year |
$ | 328 | $ | 1,361 | $ | 267 | $ | — | $ | 1,956 | ||||||||||
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Condensed Consolidating Balance Sheets
(Dollars in Millions)
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||
|
December 31, 2013 |
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Assets |
||||||||||||||||||||
|
Cash and cash equivalents |
$ | 444 | $ | 696 | $ | 360 | $ | — | $ | 1,500 | ||||||||||
|
Accounts receivable |
— | 74 | 32 | — | 106 | |||||||||||||||
|
Accounts receivable, related party |
— | 56 | — | — | 56 | |||||||||||||||
|
Notes receivable |
— | 1 | 36 | — | 37 | |||||||||||||||
|
Other receivables |
76 | 198 | 6 | (264 | ) | 16 | ||||||||||||||
|
Inventories |
— | 1,069 | 59 | (1 | ) | 1,127 | ||||||||||||||
|
Deferred income taxes, net |
— | 614 | 1 | (9 | ) | 606 | ||||||||||||||
|
Prepaid expenses and other |
29 | 172 | 7 | (1 | ) | 207 | ||||||||||||||
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|
|
|
|
|
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Total current assets |
549 | 2,880 | 501 | (275 | ) | 3,655 | ||||||||||||||
|
Property, plant and equipment, net |
5 | 986 | 83 | — | 1,074 | |||||||||||||||
|
Trademarks and other intangible assets, net |
— | 2,413 | 4 | — | 2,417 | |||||||||||||||
|
Goodwill |
— | 7,999 | 12 | — | 8,011 | |||||||||||||||
|
Long-term intercompany notes |
1,842 | 1,295 | — | (3,137 | ) | — | ||||||||||||||
|
Investment in subsidiaries |
9,736 | 473 | — | (10,209 | ) | — | ||||||||||||||
|
Other assets and deferred charges |
94 | 187 | 18 | (54 | ) | 245 | ||||||||||||||
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|
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|
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Total assets |
$ | 12,226 | $ | 16,233 | $ | 618 | $ | (13,675 | ) | $ | 15,402 | |||||||||
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Liabilities and shareholders’ equity |
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Accounts payable |
$ | 1 | $ | 169 | $ | 15 | $ | — | $ | 185 | ||||||||||
|
Tobacco settlement accruals |
— | 1,727 | — | — | 1,727 | |||||||||||||||
|
Deferred revenue, related party |
— | 48 | — | — | 48 | |||||||||||||||
|
Other current liabilities |
601 | 744 | 46 | (275 | ) | 1,116 | ||||||||||||||
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|
|
|
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|
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|
Total current liabilities |
602 | 2,688 | 61 | (275 | ) | 3,076 | ||||||||||||||
|
Intercompany notes and interest payable |
1,295 | 1,700 | 142 | (3,137 | ) | — | ||||||||||||||
|
Long-term debt (less current maturities) |
5,099 | — | — | — | 5,099 | |||||||||||||||
|
Deferred income taxes, net |
— | 710 | 2 | (54 | ) | 658 | ||||||||||||||
|
Long-term retirement benefits (less current portion) |
38 | 1,172 | 11 | — | 1,221 | |||||||||||||||
|
Other noncurrent liabilities |
25 | 156 | — | — | 181 | |||||||||||||||
|
Shareholders’ equity |
5,167 | 9,807 | 402 | (10,209 | ) | 5,167 | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
|
Total liabilities and shareholders’ equity |
$ | 12,226 | $ | 16,233 | $ | 618 | $ | (13,675 | ) | $ | 15,402 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Parent Issuer |
Guarantors | Non- Guarantors |
Eliminations | Consolidated | ||||||||||||||||
|
December 31, 2012 |
||||||||||||||||||||
|
Assets |
||||||||||||||||||||
|
Cash and cash equivalents |
$ | 755 | $ | 1,420 | $ | 327 | $ | — | $ | 2,502 | ||||||||||
|
Accounts receivable |
— | 63 | 24 | — | 87 | |||||||||||||||
|
Accounts receivable, related party |
— | 61 | — | — | 61 | |||||||||||||||
|
Notes receivable |
— | 1 | 34 | — | 35 | |||||||||||||||
|
Other receivables |
369 | 48 | 4 | (405 | ) | 16 | ||||||||||||||
|
Inventories |
— | 944 | 41 | (1 | ) | 984 | ||||||||||||||
|
Deferred income taxes, net |
— | 909 | 1 | (2 | ) | 908 | ||||||||||||||
|
Prepaid expenses and other |
25 | 188 | 8 | (2 | ) | 219 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total current assets |
1,149 | 3,634 | 439 | (410 | ) | 4,812 | ||||||||||||||
|
Property, plant and equipment, net |
5 | 1,019 | 12 | 1 | 1,037 | |||||||||||||||
|
Trademarks and other intangible assets, net |
— | 2,450 | 5 | — | 2,455 | |||||||||||||||
|
Goodwill |
— | 7,999 | 12 | — | 8,011 | |||||||||||||||
|
Long-term intercompany notes |
1,920 | 1,316 | — | (3,236 | ) | — | ||||||||||||||
|
Investment in subsidiaries |
8,956 | 456 | — | (9,412 | ) | — | ||||||||||||||
|
Other assets and deferred charges |
88 | 165 | 51 | (62 | ) | 242 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total assets |
$ | 12,118 | $ | 17,039 | $ | 519 | $ | (13,119 | ) | $ | 16,557 | |||||||||
|
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|
|
|
|
|
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|
|
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|
Liabilities and shareholders’ equity |
||||||||||||||||||||
|
Accounts payable |
$ | 1 | $ | 183 | $ | 3 | $ | — | $ | 187 | ||||||||||
|
Tobacco settlement accruals |
— | 2,489 | — | — | 2,489 | |||||||||||||||
|
Due to related party |
— | 1 | — | — | 1 | |||||||||||||||
|
Deferred revenue, related party |
— | 42 | — | — | 42 | |||||||||||||||
|
Current maturities of long-term debt |
— | 60 | — | — | 60 | |||||||||||||||
|
Other current liabilities |
425 | 910 | 64 | (409 | ) | 990 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total current liabilities |
426 | 3,685 | 67 | (409 | ) | 3,769 | ||||||||||||||
|
Intercompany notes and interest payable |
1,316 | 1,920 | — | (3,236 | ) | — | ||||||||||||||
|
Long-term debt (less current maturities) |
5,035 | — | — | — | 5,035 | |||||||||||||||
|
Deferred income taxes, net |
— | 523 | — | (62 | ) | 461 | ||||||||||||||
|
Long-term retirement benefits (less current portion) |
58 | 1,752 | 11 | — | 1,821 | |||||||||||||||
|
Other noncurrent liabilities |
26 | 188 | — | — | 214 | |||||||||||||||
|
Shareholders’ equity |
5,257 | 8,971 | 441 | (9,412 | ) | 5,257 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total liabilities and shareholders’ equity |
$ | 12,118 | $ | 17,039 | $ | 519 | $ | (13,119 | ) | $ | 16,557 | |||||||||
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