Stock Analysis on Net
Stock Analysis on Net
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Reynolds American Inc. (NYSE:RAI)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Revenues

Advanced level

Accounting Policy on Revenue Recognition

Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the seller’s price to the buyer is fixed or determinable, and collectability is reasonably assured. These criteria are generally met when title and risk of loss pass to the customer. Payments received in advance of shipments are deferred and recorded in other accrued liabilities until shipment occurs. Certain sales of leaf to a related party, considered as bill-and-hold for accounting purposes, are recorded as deferred revenue when all of the above revenue recognition criteria are met except delivery, postponed at the customer’s request. Revenue is subsequently recognized upon delivery. The revenues recorded are presented net of excise tax collected on behalf of government authorities.

Shipping and handling costs are classified as cost of products sold. Net sales include certain sales incentives, including retail discounting, promotional allowances and coupons.

Source: 10-K (filing date: 2017-02-09).


Revenues as Reported

Reynolds American Inc., Income Statement, Revenues

US$ in millions

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12 months ended: Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
RJR Tobacco 10,314  8,634  6,767  6,728  6,960 
Santa Fe 973  818  658  572  486 
American Snuff 914  855  783  745  681 
All Other 302  368  263  191  177 
Consolidated net sales 12,503  10,675  8,471  8,236  8,304 

Based on: 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-10), 10-K (filing date: 2014-02-11), 10-K (filing date: 2013-02-12).

Item Description The company
Consolidated net sales Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss). Reynolds American Inc.’s consolidated net sales increased from 2014 to 2015 and from 2015 to 2016.