Income Statement
Quarterly Data

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.

Reynolds American Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012	Sep 30, 2012	Jun 30, 2012	Mar 31, 2012
Net sales, includes excise taxes	3,893)	4,191)	4,276)	4,261)	3,892)	4,159)	4,315)	3,336)	2,815)	2,961)	3,131)	2,998)	2,695)	2,875)	3,027)	3,070)	2,657)	2,976)	3,013)	3,117)	2,779)
Net sales, related party	38)	63)	54)	54)	55)	57)	66)	54)	82)	63)	71)	91)	86)	84)	80)	92)	81)	81)	97)	87)	77)
Net sales, includes excise taxes	3,931)	4,254)	4,330)	4,315)	3,947)	4,216)	4,381)	3,390)	2,897)	3,024)	3,202)	3,089)	2,781)	2,959)	3,107)	3,162)	2,738)	3,057)	3,110)	3,204)	2,856)
Cost of products sold, excludes excise taxes	(1,199)	(1,212)	(1,189)	(1,275)	(1,165)	(1,350)	(1,404)	(1,084)	(850)	(1,135)	(1,034)	(959)	(930)	(981)	(1,004)	(999)	(694)	(1,133)	(1,082)	(1,112)	(994)
Excise taxes	(982)	(1,068)	(1,125)	(1,120)	(1,030)	(1,162)	(1,220)	(987)	(840)	(890)	(962)	(927)	(846)	(920)	(972)	(983)	(855)	(979)	(993)	(1,028)	(923)
Gross profit	1,750)	1,974)	2,016)	1,920)	1,752)	1,704)	1,757)	1,319)	1,207)	999)	1,206)	1,203)	1,005)	1,058)	1,131)	1,180)	1,189)	945)	1,035)	1,064)	939)
Selling, general and administrative expenses	(418)	(483)	(484)	(499)	(465)	(683)	(453)	(451)	(511)	(703)	(391)	(364)	(413)	(369)	(339)	(380)	(301)	(536)	(311)	(325)	(298)
Gain on divestitures	—)	—)	—)	—)	4,861)	(325)	7)	3,499)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Amortization expense	(6)	(5)	(6)	(6)	(6)	(6)	(6)	(3)	(3)	(3)	(3)	(3)	(2)	(1)	(1)	(2)	(1)	(5)	(5)	(5)	(6)
Asset impairment and exit charges	—)	—)	—)	—)	—)	—)	(99)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Trademark and other intangible asset impairment charges	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(32)	—)	—)	—)	(129)	—)	—)	—)
Restructuring charge	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(149)
Operating income	1,326)	1,486)	1,526)	1,415)	6,142)	690)	1,206)	4,364)	693)	293)	812)	836)	590)	656)	791)	798)	887)	275)	719)	734)	486)
Interest and debt expense	(149)	(150)	(150)	(152)	(174)	(185)	(189)	(105)	(91)	(89)	(76)	(62)	(59)	(66)	(66)	(65)	(62)	(64)	(56)	(58)	(56)
Interest income	2)	1)	2)	2)	3)	2)	3)	—)	1)	—)	1)	1)	1)	1)	1)	1)	2)	2)	1)	2)	2)
Other income (expense), net	(4)	1)	(10)	1)	(252)	3)	(5)	(20)	17)	5)	10)	—)	(1)	(131)	(6)	(2)	2)	(28)	(1)	(2)	(3)
Income from continuing operations before income taxes	1,175)	1,338)	1,368)	1,266)	5,719)	510)	1,015)	4,239)	620)	209)	747)	775)	531)	460)	720)	732)	829)	185)	663)	676)	429)
Provision for income taxes	(395)	(487)	(507)	(470)	(2,154)	(231)	(358)	(2,311)	(231)	(61)	(280)	(283)	(193)	(168)	(263)	(271)	(321)	(46)	(243)	(233)	(159)
Income from continuing operations	780)	851)	861)	796)	3,565)	279)	657)	1,928)	389)	148)	467)	492)	338)	292)	457)	461)	508)	139)	420)	443)	270)
Income from discontinued operations, net of tax	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	25)	—)	—)	—)	—)	—)	—)	—)	—)
Net income	780)	851)	861)	796)	3,565)	279)	657)	1,928)	389)	148)	467)	492)	363)	292)	457)	461)	508)	139)	420)	443)	270)

Net Sales: The net sales, including excise taxes, exhibited fluctuations over the observed quarters. From early 2012 to the end of 2013, sales generally ranged between approximately 2,600 to 3,100 million US dollars, with occasional dips and recoveries. Beginning in 2014, a noticeable increase occurred, culminating in a peak around Q3 2015, with a value exceeding 4,300 million US dollars. Following this peak, net sales demonstrated a declining trend through early 2017, falling back to levels near 3,900 million US dollars.
Cost of Products Sold and Excise Taxes: Cost of products sold (excluding excise taxes) and excise taxes both showed variability but established a general pattern of increase and decrease corresponding to net sales movements. Costs excluding excise taxes decreased sharply in early 2013 but increased again toward late 2015 and 2016, reaching highs of over 1,400 million US dollars before slightly reducing. Excise taxes follow a similar pattern, initially decreasing from early 2013 to mid-2014, then rising to a peak near the end of 2015, followed by a moderate decline into 2017.
Gross Profit: Gross profit mirrored the dynamics of sales and costs, maintaining above 900 million US dollars for most quarters, with peaks notably in the later part of the timeframe (2015 and 2016), surpassing 2,000 million US dollars. This suggests effective margin control despite fluctuations in costs and variable excise tax burdens.
Selling, General and Administrative Expenses (SG&A): SG&A expenses exhibited volatile behavior, with substantial increases in certain quarters. For example, Q4 2012 and Q4 2014 show significant enlargements in expenses, peaking near 700 million US dollars. There is no consistent seasonal trend, but spikes correspond to periods where operating income also behaves irregularly, suggesting possible episodic investments or nonrecurring costs.
Divestitures and Impairments: A significant gain on divestitures appeared sharply in Q4 2015 with 3,499 million US dollars and another large gain in Q4 2016 with 4,861 million US dollars. There are occasional asset impairments and restructuring charges recorded in the dataset, such as a restructuring charge in Q1 2012 and impairments in later years, indicating periodic strategic adjustments or asset revaluations impacting results.
Operating Income: Operating income fluctuated considerably, with a marked increase to 4,364 million US dollars in Q4 2015 and even higher in Q4 2016 at 6,142 million US dollars, largely attributed to divestiture gains. Outside of these spikes, operating income showed moderate variability, generally ranging between 400 to 1,500 million US dollars, reflecting core operational profitability aside from one-time gains.
Interest and Debt Expenses: Interest and debt expenses trended upward from roughly 56 million US dollars in early 2012 to peaks near 189 million US dollars in late 2015, then stabilized around 150 million US dollars through 2016 and early 2017. This pattern may reflect changes in debt structure or interest rates during the period.
Income from Continuing Operations: Income from continuing operations before taxes displayed volatility, with a remarkable surge in late 2015 and 2016 that aligns with operating income spikes. The net income after tax also mirrors this pattern, signaling strong underlying earnings supplemented by substantial gains on divestitures. Despite variability, income remained positive every quarter, indicating sustained profitability.
Income Taxes: The provision for income taxes aligned with fluctuations in pre-tax income, with notable spikes in tax provision during quarters of elevated income, such as late 2015 and 2016. There are also instances of reduced tax provision associated with lower income periods.
Overall Financial Trends: The data reveals a company with cyclical net sales and variable costs, managing to maintain gross profits and positive operating income consistently. Significant one-time gains from divestitures in late 2015 and 2016 greatly enhanced profitability during those periods. Interest expense increased moderately over time but did not overwhelm operational earnings. The company’s financial performance shows signs of periodic strategic shifts, likely involving asset sales and restructuring, which have materially influenced reported earnings.

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Reynolds American Inc. (NYSE:RAI)

Income StatementQuarterly Data

Income Statement
Quarterly Data