Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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Reynolds American Inc. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Reynolds American Inc., consolidated income statement
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).
The financial data demonstrates several notable trends in the company's performance over the period from 2012 to 2016.
- Net Sales
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Net sales including excise taxes showed a generally increasing trend, rising from approximately $11,885 million in 2012 to $16,620 million in 2016. There was a slight dip in 2013 before a steady increase thereafter, with a significant jump between 2014 and 2015. Related party sales, however, decreased consistently from $342 million in 2012 to $226 million in 2016.
- Cost of Products Sold and Excise Taxes
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The cost of products sold excluding excise taxes varied somewhat, with a low point in 2013 at around $3,678 million, increasing to approximately $4,841 million by 2016. Excise taxes also increased slightly over the period, from about $3,923 million in 2012 to $4,343 million in 2016. Combined, these costs have increased, impacting gross profit dynamics.
- Gross Profit
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Gross profit increased steadily from $3,983 million in 2012 to $7,662 million in 2016, more than doubling over the five-year span. This reflects improved operational efficiency and increased sales despite rising costs.
- Selling, General and Administrative Expenses (SG&A)
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SG&A expenses showed fluctuations, initially decreasing from $1,470 million in 2012 to $1,389 million in 2013, then increased sharply to $1,871 million in 2014 and remained elevated in 2015 ($2,098 million) before declining again in 2016 to $1,931 million. This suggests some operational cost management but also periods of increased expenditure.
- Non-Operating and Other Income Items
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Significant gains on divestitures appeared in 2015 ($3,181 million) and grew further in 2016 ($4,861 million), contributing substantially to operating income. Asset impairment and restructuring charges were recorded in earlier years but were minimal or absent by 2016. Amortization expenses remained low and relatively stable. Other income (expense), net, shows variability with a notable negative amount in 2016 (-$260 million), indicating some financial pressures or one-time costs.
- Operating Income
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Operating income increased markedly over the period, from $2,214 million in 2012 to $10,569 million in 2016, driven largely by increased gross profit and gains on divestitures. The sharp rise particularly after 2014 reflects improved profitability and operational gains.
- Interest and Debt Expense
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Interest and debt expenses rose gradually from $234 million in 2012 to $626 million in 2016, indicating increased borrowing costs or higher debt levels. Interest income was minimal but showed a slight increase over time.
- Income from Continuing Operations and Net Income
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Income from continuing operations rose significantly from $1,272 million in 2012 to $6,073 million in 2016. Net income mirrored this trend, reflecting strong bottom-line growth. The provision for income taxes increased substantially in absolute terms but remained proportionate to pre-tax income levels.
- Other Observations
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The data indicates a one-time income from discontinued operations in 2014 ($25 million), which did not recur in other years. Overall, the company displayed solid growth in sales, profit margins, and net income, supported by efficiency improvements and strategic divestitures.