Stock Analysis on Net
Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Reynolds American Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Accounts payable 0.43 0.34 0.93 1.20 1.13
Tobacco settlement accruals 4.89 5.29 11.97 11.21 15.03
Due to related party 0.01 0.02 0.01 0.00 0.01
Deferred revenue, related party 0.13 0.06 0.21 0.31 0.25
Current maturities of long-term debt 0.98 0.95 2.96 0.00 0.36
Dividends payable on common stock 1.28 0.97 2.34 2.20 1.97
Payroll and employee benefits 0.52 0.39 1.17 1.16 0.78
Pension and other postretirement benefits 0.17 0.17 0.49 0.51 0.45
Marketing and advertising 0.30 0.40 0.88 0.76 0.64
Excise, franchise and property tax 0.34 0.41 1.06 1.02 0.90
Tobacco quota buyout 0.00 0.00 0.00 0.34 0.33
Other 0.69 0.95 1.29 1.25 0.91
Other current liabilities 2.03% 2.32% 4.90% 5.04% 4.01%
Current liabilities 9.76% 9.94% 23.32% 19.97% 22.76%
Long-term debt, less current maturities 24.79 31.83 30.49 33.11 30.41
Long-term deferred income taxes, net 18.80 19.23 2.52 4.27 2.78
Long-term retirement benefits, less current portion 3.66 4.26 13.14 7.93 11.00
Long-term deferred revenue, related party 0.08 0.00 0.00 0.00 0.00
Other noncurrent liabilities 0.43 0.45 0.77 1.18 1.29
Noncurrent liabilities 47.75% 55.77% 46.92% 46.48% 45.49%
Total liabilities 57.51% 65.71% 70.24% 66.45% 68.25%
Common stock 0.00 0.00 0.00 0.00 0.00
Paid-in capital 35.79 34.57 40.80 42.66 43.94
Retained earnings (accumulated deficit) 7.32 0.35 -8.65 -8.75 -10.31
Accumulated other comprehensive loss -0.61 -0.64 -2.40 -0.36 -1.88
Shareholders’ equity 42.49% 34.29% 29.76% 33.55% 31.75%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Current liabilities
Current liabilities as a percentage of total liabilities and shareholders’ equity decreased significantly from 22.76% in 2012 to 9.76% in 2016, with a notable drop occurring between 2014 (23.32%) and 2015 (9.94%). This decline reflects a reduction in short-term obligations relative to the overall capital structure.
Within current liabilities, accounts payable declined from 1.13% in 2012 to a low of 0.34% in 2015 before a slight increase to 0.43% in 2016. Tobacco settlement accruals showed a strong downward trend from 15.03% in 2012 to 4.89% in 2016, suggesting reduced liabilities related to tobacco settlements over time.
Dividends payable on common stock decreased from 1.97% in 2012 to 0.97% in 2015 but increased again to 1.28% in 2016, indicating fluctuations in dividend obligations. Payroll and employee benefits, as well as pension and other postretirement benefits, both saw declining percentages by 2016 compared to earlier years.
Marketing and advertising liabilities decreased substantially from 0.64% in 2012 to 0.30% in 2016, and excise, franchise, and property taxes followed a similar downward pattern. Other current liabilities halved from 4.01% in 2012 to 2.03% in 2016.
Noncurrent liabilities
Noncurrent liabilities as a proportion of total liabilities and shareholders’ equity were relatively stable, increasing slightly from 45.49% in 2012 to a peak of 55.77% in 2015 before decreasing to 47.75% in 2016.
Long-term debt, excluding current maturities, remained a major component, ranging from approximately 30% to 33% between 2012 and 2015, but fell to 24.79% in 2016. Long-term deferred income taxes, net, displayed a sharp increase from below 5% in 2012–2014 to nearly 19% in 2015 and 18.8% in 2016, indicating changes in tax-related deferred obligations.
Long-term retirement benefits showed volatility, with a marked decline from 13.14% in 2014 to just 3.66% in 2016, which may reflect changes in pension plans or funding status. Other noncurrent liabilities steadily decreased from 1.29% in 2012 to 0.43% in 2016.
Shareholders’ equity
Shareholders’ equity increased from 31.75% in 2012 to 42.49% in 2016. This rise was primarily driven by a notable shift in retained earnings from a negative position (-10.31% in 2012) to a positive 7.32% in 2016, signifying improved accumulated earnings over the period.
Paid-in capital decreased from 43.94% in 2012 to 35.79% in 2016, indicating some reduction in contributed capital or changes in capital structure. Accumulated other comprehensive loss fluctuated but remained a small negative proportion overall.
Total liabilities and shareholders’ equity
The total composition remained constant at 100% for all periods, serving as the basis for percentage comparisons.
Overall trends and insights
There was a clear trend of decreasing current liabilities relative to total capital, driven by reductions in settlement accruals, accounts payable, and other short-term obligations. Simultaneously, long-term liabilities and shareholders’ equity components experienced shifts that suggest active management of long-term debt and capital structure.
The significant increase in deferred income taxes points to changes in tax treatment or timing differences in income recognition. The improvement in retained earnings aligns with enhanced profitability or earnings retention policies. Meanwhile, the decline in long-term retirement benefits and other noncurrent liabilities suggests potential adjustments in postretirement obligations or liability classifications.
In sum, the financial data indicate a strengthening equity position, a reduction in short-term liabilities, and fluctuations in long-term obligations, reflecting evolving financial strategies and operational outcomes over the examined period.