Analysis of Debt
Total Debt (Carrying Amount)
Reynolds American Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Total long-term debt remained relatively stable from 2012 through 2014, followed by a significant escalation in 2015 and a subsequent partial reduction by the end of 2016.
- Total Debt Carrying Amount
- Between 2012 and 2014, the total long-term debt exhibited minimal fluctuation, maintaining a range between 5,083 million and 5,099 million US dollars. A substantial increase occurred in 2015, where the carrying amount surged to 17,447 million US dollars, an increase of approximately 243% compared to the 2014 level. This peak was followed by a decline to 13,165 million US dollars by December 31, 2016.
- Current Maturities of Long-Term Debt
- Short-term obligations associated with long-term debt experienced a sharp increase after 2012. The amount rose from 60 million US dollars in 2012 to 450 million US dollars in 2014, eventually stabilizing around 500 million US dollars in 2015 and 2016. This indicates a shift toward higher annual repayment requirements in the later years of the period.
- Long-Term Debt Composition
- The non-current portion of long-term debt followed the general trajectory of total debt. After remaining consistent near 5 billion US dollars from 2012 to 2014, the non-current balance increased dramatically to 16,941 million US dollars in 2015 before moderating to 12,664 million US dollars in 2016.
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Total Debt (Fair Value)
| Dec 31, 2016 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total long-term debt (fair value) | 14,300) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.09 |
Based on: 10-K (reporting date: 2016-12-31).
Weighted-average Interest Rate on Debt
Effective average annual interest rate on debt: 5.00%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.00% | 14,300) | 715) | |
| Total | 14,300) | 715) | |
| 5.00% | |||
Based on: 10-K (reporting date: 2016-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 715 ÷ 14,300 = 5.00%