Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | BTI |
Entity Registrant Name | British American Tobacco p.l.c. |
Entity Central Index Key | 0001303523 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 2,456,415,884 |
Group Income Statement
Group Income Statement - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue | [1] | £ 24,492 | £ 14,130 | |
Raw materials and consumables used | (4,664) | (3,777) | ||
Changes in inventories of finished goods and work in progress | 114 | 44 | ||
Employee benefit costs | (3,005) | £ (2,679) | (2,274) | |
Depreciation, amortisation and impairment costs | (1,038) | (902) | (607) | |
Other operating income | 85 | 176 | ||
Loss on reclassification from amortised cost to fair value | (3) | |||
Other operating expenses | (6,668) | (3,037) | ||
Profit from operations | 9,313 | 4,655 | ||
Net finance costs | (1,381) | (1,094) | (637) | |
Share of post-tax results of associates and joint ventures | 419 | 2,227 | ||
Profit before taxation | 8,351 | 6,245 | ||
Taxation on ordinary activities | (2,141) | (1,406) | ||
Profit for the year | 6,210 | 4,839 | ||
Attributable to: | ||||
Owners of the parent | 6,032 | 4,648 | ||
Non-controlling interests | £ 178 | £ 191 | ||
Earnings per share | ||||
Basic | £ 2.640 | £ 2.502 | ||
Diluted | £ 2.632 | £ 2.492 | ||
Restatement Adjustments | ||||
Revenue | [1] | 19,564 | ||
Raw materials and consumables used | (4,520) | |||
Changes in inventories of finished goods and work in progress | (513) | |||
Employee benefit costs | (2,679) | |||
Depreciation, amortisation and impairment costs | (902) | |||
Other operating income | 144 | |||
Other operating expenses | (4,682) | |||
Profit from operations | 6,412 | |||
Net finance costs | (1,094) | |||
Share of post-tax results of associates and joint ventures | 24,209 | |||
Profit before taxation | 29,527 | |||
Taxation on ordinary activities | 8,129 | |||
Profit for the year | 37,656 | |||
Attributable to: | ||||
Owners of the parent | 37,485 | |||
Non-controlling interests | £ 171 | |||
Earnings per share | ||||
Basic | £ 18.339 | |||
Diluted | £ 18.276 | |||
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Group Income Statement (Parenth
Group Income Statement (Parenthetical) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Duty excise and other taxes levied on tobacco and tobacco related products | £ 38,553 | £ 37,780 | £ 32,136 |
Group Statement of Comprehensiv
Group Statement of Comprehensive Income £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Restatement Adjustments | |
Profit for the year | £ 37,656 |
Other comprehensive income/(expense) | |
Items that may be reclassified subsequently to profit or loss: | (3,809) |
Differences on exchange | (3,084) |
Cash flow hedges | |
– net fair value (losses)/gains | (264) |
– reclassified and reported in profit for the year | 109 |
– reclassified and reported in total assets | (16) |
Investments held at fair value | |
– net fair value losses | (27) |
Net investment hedges | |
– net fair value (losses)/gains | 425 |
– differences on exchange on borrowings | (68) |
Associates – share of OCI, net of tax | (918) |
Tax on items that may be reclassified | 34 |
Items that will not be reclassified subsequently to profit or loss: | 681 |
Retirement benefit schemes | |
– net actuarial gains/(losses) | 833 |
– surplus recognition and minimum funding obligations | (6) |
Associates – share of OCI, net of tax | 25 |
Tax on items that will not be reclassified | (171) |
Total other comprehensive income/(expense) for the year, net of tax | (3,128) |
Total comprehensive income for the year, net of tax | 34,528 |
Attributable to: | |
Owners of the parent | 34,361 |
Non-controlling interests | 167 |
Total comprehensive income for the year, net of tax | £ 34,528 |
Group Statement of Changes in E
Group Statement of Changes in Equity - GBP (£) £ in Millions | Total | Share Capital | Share Premium, Capital Redemption and Merger Reserves | Other Reserves | Retained Earnings | Total Attributable to Owners of Parent | Non- Controlling Interests |
Beginning balance at Dec. 31, 2015 | £ 5,032 | £ 507 | £ 3,927 | £ (1,294) | £ 1,754 | £ 4,894 | £ 138 |
Total comprehensive income for the year, net of tax | 6,426 | 1,707 | 4,473 | 6,180 | 246 | ||
Profit for the year | 4,839 | 4,648 | 4,648 | 191 | |||
Other comprehensive income for the year | 1,587 | 1,707 | (175) | 1,532 | 55 | ||
– reclassified and reported in total assets | (12) | ||||||
Other changes in equity | |||||||
– value of employee services | 71 | 71 | 71 | ||||
– proceeds from shares issued | 4 | 4 | 4 | ||||
– ordinary shares | (2,910) | (2,910) | (2,910) | ||||
– to non-controlling interests | (156) | (156) | |||||
– held in employee share ownership trusts | (64) | (64) | (64) | ||||
Non-controlling interests – acquisitions | 4 | 4 | (4) | ||||
Other movements | 3 | 3 | 3 | ||||
Ending balance (Restatement Adjustments) at Dec. 31, 2016 | 8,406 | 507 | 3,931 | 413 | 3,331 | 8,182 | 224 |
Ending balance at Dec. 31, 2016 | 8,406 | 507 | 3,931 | 413 | 3,331 | 8,182 | 224 |
Total comprehensive income for the year, net of tax | Restatement Adjustments | 34,528 | (3,805) | 38,166 | 34,361 | 167 | ||
Profit for the year | Restatement Adjustments | 37,656 | 37,485 | 37,485 | 171 | |||
Other comprehensive income for the year | Restatement Adjustments | (3,128) | (3,805) | 681 | (3,124) | (4) | ||
– reclassified and reported in total assets | Restatement Adjustments | (16) | ||||||
Other changes in equity | |||||||
– value of employee services | Restatement Adjustments | 105 | 105 | 105 | ||||
– proceeds from shares issued | Restatement Adjustments | 5 | 5 | 5 | ||||
– ordinary shares | Restatement Adjustments | (4,465) | (4,465) | (4,465) | ||||
– to non-controlling interests | Restatement Adjustments | (169) | (169) | |||||
– held in employee share ownership trusts | Restatement Adjustments | (205) | (205) | (205) | ||||
Shares issued- RAI acquisition | Restatement Adjustments | 22,773 | 107 | 22,666 | 22,773 | |||
Other movements | Restatement Adjustments | 3 | 3 | 3 | ||||
Ending balance (Accounting policy change (IFRS 9)) at Dec. 31, 2017 | (38) | (9) | (29) | (38) | |||
Ending balance (Revised for IFRS 9) at Dec. 31, 2017 | 60,943 | 614 | 26,602 | (3,401) | 36,906 | 60,721 | 222 |
Ending balance (Restatement Adjustments) at Dec. 31, 2017 | 60,981 | 614 | 26,602 | (3,392) | 36,935 | 60,759 | 222 |
Ending balance at Dec. 31, 2017 | 60,981 | 614 | 26,602 | (3,392) | 36,935 | 60,759 | 222 |
Total comprehensive income for the year, net of tax | 9,424 | 3,090 | 6,149 | 9,239 | 185 | ||
Profit for the year | 6,210 | 6,032 | 6,032 | 178 | |||
Other comprehensive income for the year | 3,214 | 3,090 | 117 | 3,207 | 7 | ||
– reclassified and reported in total assets | (22) | (22) | (22) | ||||
Other changes in equity | |||||||
– value of employee services | 121 | 121 | 121 | ||||
– proceeds from shares issued | 4 | 4 | 4 | ||||
– ordinary shares | (4,463) | (4,463) | (4,463) | ||||
– to non-controlling interests | (163) | (163) | |||||
– held in employee share ownership trusts | (139) | (139) | (139) | ||||
Non-controlling interests – acquisitions | (11) | (11) | (11) | ||||
Other movements | (6) | (6) | (6) | ||||
Ending balance at Dec. 31, 2018 | £ 65,688 | £ 614 | £ 26,606 | £ (333) | £ 38,557 | £ 65,444 | £ 244 |
Group Balance Sheet
Group Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Intangible assets | £ 124,013 | £ 117,785 |
Property, plant and equipment | 5,166 | 4,882 |
Investments in associates and joint ventures | 1,737 | |
Retirement benefit assets | 1,147 | |
Deferred tax assets | 344 | 333 |
Trade and other receivables | 685 | 756 |
Investments held at fair value | 39 | |
Derivative financial instruments | 556 | 590 |
Total non-current assets | 133,687 | |
Inventories | 6,029 | 5,864 |
Income tax receivable | 74 | |
Trade and other receivables | 3,588 | 4,053 |
Investments held at fair value | 178 | |
Derivative financial instruments | 179 | 228 |
Cash and cash equivalents | 2,602 | 3,291 |
Total current assets other than non-current assets classified as held for sale | 12,650 | |
Assets classified as held-for-sale | 5 | |
Total current assets | 12,655 | |
Total assets | 146,342 | |
Equity – capital and reserves | ||
Share capital | 614 | |
Share premium, capital redemption and merger reserves | 26,606 | |
Other reserves | (333) | |
Retained earnings | 38,557 | |
Owners of the parent | 65,444 | |
Non-controlling interests | 244 | |
Total equity | 65,688 | 60,981 |
Liabilities | ||
Borrowings | 43,284 | |
Retirement benefit liabilities | 1,665 | 1,821 |
Deferred tax liabilities | 17,776 | 17,129 |
Other provisions for liabilities | 331 | |
Trade and other payables | 1,055 | |
Derivative financial instruments | 214 | 79 |
Total non-current liabilities | 64,325 | |
Borrowings | 4,225 | |
Income tax payable | 853 | |
Other provisions for liabilities | 318 | |
Trade and other payables | 10,631 | |
Derivative financial instruments | 302 | 155 |
Total current liabilities | 16,329 | |
Total equity and liabilities | £ 146,342 | |
Restatement Adjustments | ||
Assets | ||
Intangible assets | 117,785 | |
Property, plant and equipment | 4,882 | |
Investments in associates and joint ventures | 1,577 | |
Retirement benefit assets | 1,123 | |
Deferred tax assets | 333 | |
Trade and other receivables | 756 | |
Investments held at fair value | 42 | |
Derivative financial instruments | 590 | |
Total non-current assets | 127,088 | |
Inventories | 5,864 | |
Income tax receivable | 460 | |
Trade and other receivables | 4,053 | |
Investments held at fair value | 65 | |
Derivative financial instruments | 228 | |
Cash and cash equivalents | 3,291 | |
Total current assets other than non-current assets classified as held for sale | 13,961 | |
Assets classified as held-for-sale | 5 | |
Total current assets | 13,966 | |
Total assets | 141,054 | |
Equity – capital and reserves | ||
Share capital | 614 | |
Share premium, capital redemption and merger reserves | 26,602 | |
Other reserves | (3,392) | |
Retained earnings | 36,935 | |
Owners of the parent | 60,759 | |
Non-controlling interests | 222 | |
Total equity | 60,981 | |
Liabilities | ||
Borrowings | 44,027 | |
Retirement benefit liabilities | 1,821 | |
Deferred tax liabilities | 17,129 | |
Other provisions for liabilities | 354 | |
Trade and other payables | 1,058 | |
Derivative financial instruments | 79 | |
Total non-current liabilities | 64,468 | |
Borrowings | 5,423 | |
Income tax payable | 720 | |
Other provisions for liabilities | 399 | |
Trade and other payables | 8,908 | |
Derivative financial instruments | 155 | |
Total current liabilities | 15,605 | |
Total equity and liabilities | £ 141,054 |
Group Cash Flow Statement
Group Cash Flow Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Cash Flow [Line Items] | |||
Profit from operations | £ 9,313 | £ 4,655 | |
Adjustments for | |||
– depreciation, amortisation and impairment costs | 1,038 | 607 | |
– (increase)/decrease in inventories | (192) | (638) | |
– decrease/(increase) in trade and other receivables | 502 | 87 | |
– increase in amounts recoverable in respect of Quebec class action | (242) | ||
– increase/(decrease) in provision for Master Settlement Agreement | 1,364 | ||
– increase/(decrease) in trade and other payables | 123 | 428 | |
– decrease in net retirement benefit liabilities | (100) | (145) | |
– (decrease)/increase in other provisions for liabilities | (107) | 141 | |
– other non-cash items | 31 | ||
Cash generated from operating activities | 11,972 | 4,893 | |
Dividends received from associates | 214 | 962 | |
Tax paid | (1,891) | (1,245) | |
Net cash generated from operating activities | 10,295 | 4,610 | |
Cash flows from investing activities | |||
Interest received | 52 | 62 | |
Purchases of property, plant and equipment | (758) | (586) | |
Proceeds on disposal of property, plant and equipment | 38 | 93 | |
Purchases of intangibles | (185) | (88) | |
Purchases of investments | (320) | (109) | |
Proceeds on disposals of investments | 167 | 22 | |
Investment in associates and acquisitions of other subsidiaries net of cash acquired | (32) | (57) | |
Proceeds on disposal of non-core business net of cash disposed | 17 | ||
Proceeds from associates' share buy-backs | 23 | ||
Net cash used in investing activities | (1,021) | (640) | |
Cash flows from financing activities | |||
Interest paid | (1,559) | (641) | |
Proceeds from increases in and new borrowings | 2,111 | 3,476 | |
Inflows/(outflows) relating to derivative financial instruments | 49 | (26) | |
Purchases of own shares held in employee share ownership trusts | (139) | (64) | |
Reductions in and repayments of borrowings | (5,596) | (3,840) | |
Dividends paid to owners of the parent | (4,347) | (2,910) | |
Purchases of non-controlling interests | (11) | (70) | |
Dividends paid to non-controlling interests | (142) | (147) | |
Other | 4 | (7) | |
Net cash (used in)/from financing activities | (9,630) | (4,229) | |
Net cash flows generated (used in)/from operating, investing and financing activities | (356) | (259) | |
Differences on exchange | (138) | 180 | |
(Decrease)/increase in net cash and cash equivalents in the year | (494) | (79) | |
Net cash and cash equivalents at 1 January | 2,822 | £ 1,651 | 1,730 |
Net cash and cash equivalents at 31 December | 2,328 | 2,822 | £ 1,651 |
Restatement Adjustments | |||
Statement of Cash Flow [Line Items] | |||
Profit from operations | 6,412 | ||
Adjustments for | |||
– depreciation, amortisation and impairment costs | 902 | ||
– (increase)/decrease in inventories | 1,409 | ||
– decrease/(increase) in trade and other receivables | (732) | ||
– increase in amounts recoverable in respect of Quebec class action | (130) | ||
– increase/(decrease) in provision for Master Settlement Agreement | (934) | ||
– increase/(decrease) in trade and other payables | (685) | ||
– decrease in net retirement benefit liabilities | (131) | ||
– (decrease)/increase in other provisions for liabilities | (78) | ||
– other non-cash items | 86 | ||
Cash generated from operating activities | 6,119 | ||
Dividends received from associates | 903 | ||
Tax paid | (1,675) | ||
Net cash generated from operating activities | 5,347 | ||
Cash flows from investing activities | |||
Interest received | 83 | ||
Purchases of property, plant and equipment | (791) | ||
Proceeds on disposal of property, plant and equipment | 95 | ||
Purchases of intangibles | (187) | ||
Purchases of investments | (170) | ||
Proceeds on disposals of investments | 160 | ||
Acquisition of Reynolds American Inc. net of cash acquired | (17,657) | ||
Investment in associates and acquisitions of other subsidiaries net of cash acquired | (77) | ||
Net cash used in investing activities | (18,544) | ||
Cash flows from financing activities | |||
Interest paid | (1,114) | ||
Proceeds from increases in and new borrowings | 40,937 | ||
Inflows/(outflows) relating to derivative financial instruments | (406) | ||
Purchases of own shares held in employee share ownership trusts | (205) | ||
Reductions in and repayments of borrowings | (20,827) | ||
Dividends paid to owners of the parent | (3,465) | ||
Dividends paid to non-controlling interests | (167) | ||
Other | 6 | ||
Net cash (used in)/from financing activities | 14,759 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 1,562 | ||
Differences on exchange | (391) | ||
(Decrease)/increase in net cash and cash equivalents in the year | 1,171 | ||
Net cash and cash equivalents at 1 January | £ 2,822 | ||
Net cash and cash equivalents at 31 December | £ 2,822 |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Accounting Policies [Abstract] | |
Accounting policies | 1 Accounting policies Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), IFRS as adopted by the European Union (EU). IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the Group’s consolidated financial statements for the periods presented. The consolidated financial statements have been prepared on a going concern basis under the historical cost convention except as described in the accounting policy below on financial instruments. With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers In addition, with effect from 1 January 2018, the Group has adopted IFRS 9 Financial Instruments Financial Instruments IFRS 9 has also changed the classification and measurement of financial assets. The category of available-for-sale investments (where fair value changes were deferred in reserves until disposal of the investment) has been replaced with the category of financial assets at Fair Value through Profit and Loss (for most investments) and the category of financial assets at Fair Value through Other Comprehensive Income (for qualifying equity investments). The available-for-sale reserve at 1 January 2018 has been reclassified as appropriate into retained earnings. In addition, certain loans and receivables which do not meet the measurement tests for amortised cost classification under IFRS 9 have been reclassified as financial assets at Fair Value through Profit and Loss at the same date. Given the immateriality of the various investment classes and to avoid clutter on the face of the balance sheet, the Group will use the term “investments held at fair value” to refer to all of these financial assets both pre- and post- the adoption of IFRS 9. For further details on the impact on the Group’s balance sheet of these changes, refer to note 31. The Group has adopted the hedge accounting requirements of IFRS 9 prospectively from 1 January 2018. All of the Group’s hedging relationships at the end of 2017 are considered to be continuing hedge relationships on the adoption of IFRS 9. In addition, with effect from 1 January 2018, the Group has changed certain estimates of useful economic lives for cigarette-making machinery across the Group, harmonising depreciation rates used by the historic BAT Group and by Reynolds American Inc. from 14 years and 30 years, respectively, to a standard 20-year life. The effect of the change is not material to the Group, and is estimated to be around £66 million for the year. Reynolds American Inc. recognised an impairment charge of £13 million in adopting the new estimate of useful economic lives. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. The key estimates and assumptions are set out in the accounting policies below, together with the related notes to the accounts. The critical accounting estimates include: - the review of asset values, especially indefinite life assets such as goodwill and certain trademarks and similar intangibles. The key assumptions used in respect of the impairment testing are the determination of cash-generating units, the budgeted cash flows of these units, the long-term growth rate for cash flow projections and the rate used to discount the cash flow projections. These are described in note 9; - the estimation of and accounting for retirement benefit costs. The determination of the carrying value of assets and liabilities, as well as the charge for the year, and amounts recognised in other comprehensive income, involves judgements made in conjunction with independent actuaries. These involve estimates about uncertain future events based on the environment in different countries, including life expectancy of scheme members, salary and pension increases, inflation, as well as discount rates and asset values at the year end. The assumptions used by the Group and sensitivity analysis are described in note 12; - the estimation of amounts to be recognised in respect of taxation and legal matters, and the estimation of other provisions for liabilities and charges are subject to uncertain future events, may extend over several years and so the amount and/or timing may differ from current assumptions. The accounting policy for taxation is explained below. The recognised deferred tax assets and liabilities, together with a note of unrecognised amounts, are shown in note 13, and a contingent tax asset is explained in note 6(b). Other provisions for liabilities and charges are as set out in note 21. The accounting policy on contingent liabilities, which are not provided for, is set out below and the contingent liabilities of the Group are explained in note 28. The application of these accounting policies to the payments made and credits recognised under the Master Settlement Agreement by Reynolds American Inc.(“Reynolds”) is described in note 3(d); and - the estimation of the fair values of acquired net assets arising in a business combination and the allocation of the purchase consideration between the underlying net assets acquired, including intangible assets other than goodwill, on the basis of their fair values. These estimates are prepared in conjunction with the advice of independent valuation experts where appropriate. The relevant transactions for 2018, 2017 and 2016 are described in note 24. The critical accounting judgements include: - the definition of adjusting items, which are separately disclosed as memorandum information, is explained below and the impact of these on the calculation of adjusted earnings per share is described in note 7; - the determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exists in relation to the investments held by the Group. This is assessed after taking into account the Group’s ability to appoint Directors to the entity’s Board, its relative shareholding compared with other shareholders, any significant contracts or arrangements with the entity or its other shareholders and other relevant facts and circumstances; and - the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on the free access to foreign currency, or multiple exchange rates. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management’s best judgement at the date of the financial statements. In the future, actual experience may deviate from these estimates and assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the circumstances change. These consolidated financial statements were authorised for issue by the Board of Directors on 27 February 2019. Basis of consolidation The consolidated financial information includes the financial statements of British American Tobacco p.l.c. and its subsidiary undertakings, collectively “the Group”, together with the Group’s share of the results of its associates and joint arrangements. A subsidiary is an entity controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group’s interest in the equity capital is long term and over whose operating and financial policies the Group exercises a significant influence. They are accounted for using the equity method. Joint arrangements comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of the entity require unanimous consent. Joint operations are jointly-controlled arrangements where the parties to the arrangement have rights to the underlying assets and obligations for the underlying liabilities relating to the arrangement. The Group accounts for its share of the assets, liabilities, income and expenses of any such arrangement. Joint ventures comprise arrangements where the parties to the arrangement have rights to the net assets of the arrangement. They are accounted for using the equity method. Foreign currencies and hyperinflationary territories The functional currency of the Parent Company is sterling and this is also the presentation currency of the Group. The income and cash flow statements of Group undertakings expressed in currencies other than sterling are translated to sterling using exchange rates applicable to the dates of the underlying transactions. Average rates of exchange in each year are used where the average rate approximates the relevant exchange rate at the date of the underlying transactions. Assets and liabilities of Group undertakings are translated at the applicable rates of exchange at the end of each year. In territories where there are restrictions on the free access to foreign currency or multiple exchange rates, the applicable rates of exchange are regularly reviewed. The differences between retained profits translated at average and closing rates of exchange are taken to reserves, as are differences arising on the retranslation to sterling (using closing rates of exchange) of overseas net assets at the beginning of the year, and are presented as a separate component of equity. They are recognised in the income statement when the gain or loss on disposal of a Group undertaking is recognised. Foreign currency transactions are initially recognised in the functional currency of each entity in the Group using the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of foreign currency assets and liabilities at year end rates of exchange are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges, on intercompany net investment loans and qualifying net investment hedges. Foreign exchange gains or losses recognised in the income statement are included in profit from operations or net finance costs depending on the underlying transactions that gave rise to these exchange differences. In addition, for hyperinflationary countries where the effect on the Group results would be significant, the financial statements Financial Reporting in Hyperinflationary Economies Impairment of Assets The results and balance sheets of operations in hyperinflationary territories are translated at the period end rate. In the case of Venezuela, the Group Revenue Revenue principally comprises sales of cigarettes, other tobacco products, and nicotine products, to external customers. Revenue excludes duty, excise and other taxes and is after deducting rebates, returns and other similar discounts and payments to direct and indirect customers. Revenue is recognised when control of the goods is transferred to a customer; this is usually evidenced by a transfer of the significant risks and rewards of ownership upon delivery to the customer, which in terms of timing is not materially different to the date of shipping. Retirement benefit costs The Group operates both defined benefit and defined contribution schemes including post-retirement healthcare schemes. The net deficit or surplus for each defined benefit pension scheme is calculated in accordance with IAS 19 Employee Benefits For defined benefit schemes, the actuarial cost charged to profit from operations consists of current service cost, net interest on the net defined benefit liability or asset, past service cost and the impact of any settlements. Some benefits are provided through defined contribution schemes and payments to these are charged as an expense as they fall due. Share-based payments The Group has equity-settled and cash-settled share-based compensation plans. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group’s estimate of awards that will eventually vest. For plans where vesting conditions are based on total shareholder returns, the fair value at date of grant reflects these conditions, whereas earnings per share vesting conditions are reflected in the calculation of awards that will eventually vest over the vesting period. For cash-settled share-based payments, a liability equal to the portion of the services received is recognised at its current fair value determined at each balance sheet date. Fair value is measured by the use of the Black-Scholes option pricing model, except where vesting is dependent on market conditions when the Monte-Carlo option pricing model is used. The expected life used in the models has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. Research and development Research expenditure is charged to income in the year in which it is incurred. Development expenditure is charged to income in the year it is incurred, unless it meets the recognition criteria of IAS 38 Intangible Assets Taxation Taxation is that chargeable on the profits for the period, together with deferred taxation. The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group’s subsidiaries, associates and joint arrangements operate and generate taxable income. Deferred taxation is provided in full using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or deferred tax liability is settled. Tax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in the statement of other comprehensive income or the statement of changes in equity. The Group has exposures in respect of the payment or recovery of a number of taxes. Liabilities or assets for these payments or recoveries are recognised at such time as an outcome becomes probable and when the amount can reasonably be estimated. Goodwill Goodwill arising on acquisitions is capitalised and any impairment of goodwill is recognised immediately in the income statement and is not subsequently reversed. Goodwill in respect of subsidiaries is included in intangible assets. In respect of associates and joint ventures, goodwill is included in the carrying value of the investment in the associated company or joint venture. On disposal of a subsidiary, associate or joint venture, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Intangible assets other than goodwill The intangible assets shown on the Group balance sheet consist mainly of trademarks and similar intangibles, including certain intellectual property, acquired by the Group’s subsidiary undertakings and computer software. Acquired trademarks and similar assets are carried at cost less accumulated amortisation and impairment. Trademarks with indefinite lives are not amortised but are reviewed annually for impairment. Other trademarks and similar assets are amortised on a straight-line basis over their remaining useful lives, consistent with the pattern of economic benefits expected to be received, which do not exceed 20 years. Any impairments of trademarks are recognised in the income statement but increases in trademark values are not recognised. Computer software is carried at cost less accumulated amortisation and impairment, and, with the exception of global software solutions, is amortised on a straight-line basis over periods ranging from three years to five years. Global software solutions are software assets designed to be implemented on a global basis and used as a standard solution by all of the operating companies in the Group. These assets are amortised on a straight-line basis over periods not exceeding ten years. Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight-line basis to write off the assets over their useful economic life. No depreciation is provided on freehold land or assets classified as held-for-sale. Freehold and leasehold property are depreciated at rates between 2.5% and 4% per annum, and plant and equipment at rates between 3% and 25% per annum. As noted above, with effect from 1 January 2018, cigarette-making machinery within this category is depreciated at 5% per annum (previously, between 3% and 7% per annum) as disclosed in note 3(b). Capitalised interest Borrowing costs which are directly attributable to the acquisition, construction or production of intangible assets or property, plant and equipment that takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of the asset. Leased assets Assets where the Group has substantially all the risks and rewards of ownership of the leased asset are classified as finance leases and are included as part of property, plant and equipment. Finance lease assets are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, then depreciated over the shorter of the lease term and their estimated useful lives. Leasing payments consist of capital and finance charge elements and the finance element is charged to the income statement. Rental payments under operating leases are charged to the income statement on a straight-line basis over the lease term. Impairment of non-financial assets Assets are reviewed for impairment whenever events indicate that the carrying amount of a cash-generating unit may not be recoverable. In addition, assets that have indefinite useful lives are tested annually for impairment. An impairment loss is recognised to the extent that the carrying value exceeds the higher of the asset’s fair value less costs to sell and its value in use. A cash-generating unit is the smallest identifiable group of assets that generates cash flows which are largely independent of the cash flows from other assets or groups of assets. At the acquisition date, any goodwill acquired is allocated to the relevant cash-generating unit or group of cash-generating units expected to benefit from the acquisition for the purpose of impairment testing of goodwill. Impairment of financial assets Financial assets are reviewed at each balance sheet date, or whenever events indicate that the carrying amount may not be recoverable. With effect from 1 January 2018, loss allowances for expected credit losses on financial assets which are held at amortised cost are recognised on initial recognition of the underlying asset. As permitted by IFRS 9, the loss allowance on trade receivables arising from the recognition of revenue under IFRS 15 are initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal to 12-month expected credit losses. Allowances are measured at an amount equal to the lifetime expected credit losses where the credit risk on the receivables increases significantly after initial recognition. Prior to 1 January 2018, financial assets were reviewed for impairment at each balance sheet date, or whenever events indicated that the carrying amount might not be recoverable. Inventories Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average cost incurred in acquiring inventories and bringing them to their existing location and condition, which will include raw materials, direct labour and overheads, where appropriate. Net realisable value is the estimated selling price less costs to completion and sale. Tobacco inventories which have an operating cycle that exceeds 12 months are classified as current assets, consistent with recognised industry practice. Financial instruments The Group’s business model for managing financial assets is set out in the Group Treasury Manual which notes that the primary objective with regard to the management of cash and investments is to protect against the loss of principal. Additionally, the Group aims: to maximise Group liquidity by concentrating cash at the Centre, to align the maturity profile of external investments with that of the forecast liquidity profile, to wherever practicable, match the interest rate profile of external investments to that of debt maturities or fixings, and to optimise the investment yield within the Group’s investment parameters. The majority of financial assets are held in order to collect contractual cash flows (typically cash and cash equivalents and loans and other receivables) but some assets (typically investments) are held for investment potential. Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the relevant instrument and derecognised when it ceases to be a party to such provisions. Such assets and liabilities are classified as current if they are expected to be realised or settled within 12 months after the balance sheet date. If not, they are classified as non-current. Non-derivative financial assets are classified on initial recognition in accordance with the Group’s business model as investments at fair value through profit and loss, investments at fair value through OCI, loans and receivables, or cash and cash equivalents and accounted for as follows: - Investments: These are non-derivative financial assets that cannot be classified as loans and receivables or cash and cash equivalents. Dividend and interest income on these investments are included within finance income when the Group’s right to receive payments is established. This category includes financial assets at fair value through profit and loss, financial assets at fair value through other comprehensive income and, prior to 1 January 2018, available-for-sale investments as defined by IAS 39. - Loans and other receivables: These are non-derivative financial assets with fixed or determinable payments that are solely payments of principal and interest on the principal amount outstanding, that are primarily held in order to collect contractual cash flows. These balances include trade and other receivables and are measured at amortised cost, using the effective interest rate method, and stated net of allowances for credit losses. - Cash and cash equivalents: Cash and cash equivalents include cash in hand and deposits held on call, together with other short-term highly liquid investments including investments in certain money market funds. Cash equivalents normally comprise instruments with maturities of three months or less at date of acquisition. In the cash flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in the liabilities section on the balance sheet. Fair values for quoted investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established by using valuation techniques principally involving discounted cash flow analysis. Non-derivative financial liabilities , including borrowings and trade payables, are stated at amortised cost using the effective interest method. For borrowings, their carrying value includes accrued interest payable, as well as unamortised issue costs. As shown in note 20, certain borrowings are subject to fair value hedges, as defined below. Derivative financial assets and liabilities are initially recognised, and subsequently measured, at fair value, which includes accrued interest receivable and payable where relevant. Changes in their fair values are recognised as follows: - for derivatives that are designated as cash flow hedges, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where the hedged item results in a non-financial asset, the accumulated gains and losses, previously recognised in other comprehensive income, are included in the initial carrying value of the asset (basis adjustment) and recognised in the income statement in the same periods as the hedged item. Where the underlying transaction does not result in such an asset, the accumulated gains and losses are reclassified to the income statement in the same periods as the hedged item; - for derivatives that are designated as fair value hedges, the carrying value of the hedged item is adjusted for the fair value changes attributable to the risk being hedged, with the corresponding entry being made in the income statement. The changes in fair value of these derivatives are also recognised in the income statement; - for derivatives that are designated as hedges of net investments in foreign operations, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where non-derivatives such as foreign currency borrowings are designated as net investment hedges, the relevant exchange differences are similarly recognised. The accumulated gains and losses are reclassified to the income statement when the foreign operation is disposed of; and - for derivatives that do not qualify for hedge accounting or are not designated as hedges, the changes in their fair values are recognised in the income statement in the period in which they arise. These are referred to as “held-for-trading”. In order to qualify for hedge accounting, the Group is required to document prospectively the economic relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the economic relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is re-performed periodically to ensure that the hedge has remained, and is expected to remain, highly effective. Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry or disposal), or no longer qualifies for hedge accounting. Where the hedged item is a highly probable forecast transaction, the related gains and losses remain in equity until the transaction takes place, when they are reclassified to the income statement in the same manner as for cash flow hedges as described above. When a hedged future transaction is no longer expected to occur, any related gains and losses, previously recognised in other comprehensive income, are immediately reclassified to the income statement. Derivative fair value changes recognised in the income statement are either reflected in arriving at profit from operations (if the hedged item is similarly reflected) or in finance costs. All of the Group’s hedging relationships at the end of 2017 are considered to be continuing hedge relationships on the adoption of IFRS 9. The Group’s accounting policies for financial instruments prior to the adoption of IFRS 9 on 1 January 2018, were as set out above, except for the following: non-derivative financial assets were classified on initial recognition as available-for-sale investments, loans and receivables or cash and cash equivalents. Available-for-sale investments were non-derivative financial assets that could not be classified as loans and receivables or cash and cash equivalents. Apart from available-for-sale investments, non-derivative financial assets were stated at amortised cost using the effective interest method, subject to reduction for allowances for estimated irrecoverable amounts. These estimates for irrecoverable amounts were recognised when there was objective evidence that the full amount receivable would not be collected according to the original terms of the asset. Available-for-sale investments were stated at fair value, with changes in fair value being recognised directly in other comprehensive income. When such investments were derecognised (e.g. through disposal) or became impaired, the accumulated gains and losses, previously recognised in other comprehensive income, were reclassified to the income statement within ‘finance income’. Dividend and interest income on available-for-sale investments were included within ‘finance income’ when the Group’s right to receive payments was established. Dividends Dividend Segmental analysis The Group is organised and managed on the basis of its geographic regions. These are the reportable segments for the Group as they form the focus of the Group’s internal reporting systems and are the basis used by the chief operating decision maker, identified as the Management Board, for assessing performance and allocating resources. The Group is primarily a single product business providing cigarettes and other tobacco products. While the Group has clearly differentiated brands, global segmentation between a wide portfolio of brands is not part of the regular internally reported financial information. The results of Next Generation Products are reported as part of the results of each geographic region, and are not currently material to the Group. The prices agreed between Group companies for intra-group sales of materials, manufactured goods, charges for royalties, commissions, services and fees, are based on normal commercial practices which would apply between independent businesses. Royalty income, less related expenditure, is included in the region in which the licensor is based. Adjusting items Adjusting items are significant items of o The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance and are used to derive the Group’s principal non-GAAP measures of adjusted revenue, adjusted profit from operations, adjusted diluted earnings per share, operating cash flow conversion ratio and adjusted cash from operations, all of which are before the impact of adjusting items and which are reconciled from revenue, profit from operations, diluted earnings per share, cash conversion . Provisions Provisions are recognised when either a legal or constructive obligation as a result of a past event exists at the balance sheet date, it is probable that an outflow of economic resources will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation. Contingent liabilities and contingent assets Subsidiaries and associate companies are defendants in tobacco-related and other litigation. Provision for this litigation (including legal costs) is made at such time as an unfavourable outcome becomes probable and the amount can be reasonably estimated. Contingent assets are possible assets whose existence will only be confirmed by future events not wholly within the control of the entity and are not recognised as assets until the realisation of income is virtually certain. Where a provision has not been recognised, the Group records its external legal fees and other external defence costs for tobacco-related and other litigation as these costs are incurred. Repurchase of share capital When share capital is repurchased the amount of consideration paid, including directly attributable costs, is recognised as a deduction from equity. Re |
Segmental analyses
Segmental analyses | 12 Months Ended |
Dec. 31, 2018 | |
Reportable Segments [Abstract] | |
Segmental analyses | 2 Segmental analyses (revised) With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers. Due to the acquisition of RAI, the Group revised its organisational structure. RAI is reported as a separate region (United States). The markets which previously comprised EEMEA merged with the Americas, Western Europe and Asia-Pacific to form three new regions. The markets in the Middle East merged with Asia-Pacific to form the Asia-Pacific and Middle East region (APME). The markets in East and Central Africa, West Africa and Southern Africa merged with the Americas region to form the Americas and Sub-Saharan Africa region (AmSSA). The markets in Russia, Ukraine, Caucasus, Central Asia, Belarus, Turkey and North Africa merged with the Western Europe region to form the Europe and North Africa region (ENA). The segments disclosed below have been revised on this new basis. As the chief operating decision maker, the Management Board reviews external adjusted revenues and adjusted profit from operations to evaluate segment performance and allocate resources to the overall business. The results of Next Generation Products are reported as part of the results of each geographic region and are not currently material to the Group. Consequently, it is not considered a reportable segment that requires separate disclosure under the requirements of IFRS 8 Operating Segments. The four geographic regions are the reportable segments for the Group as they form the focus of the Group’s internal reporting systems and are the basis used by the Management Board for assessing performance and allocating resources. The Management Board reviews current and prior year adjusted segmental revenue, adjusted profit from operations of subsidiaries and joint operations, and adjusted post-tax results of associates and joint ventures at constant rates of exchange. The constant rate comparison provided for reporting segment information is based on a retranslation, at prior year exchange rates, of the current year results of the Group, including intercompany royalties payable in foreign currency to UK entities. However, the Group does not adjust for the normal transactional gains and losses in operations which are generated by movements in exchange rates. In respect of the United States region, all financial statements and financial information provided by or with respect to the US business or RAI (and/or the RAI Group) are prepared on the basis of US GAAP and constitute the primary financial statements or financial information of the US business or RAI (and/or the RAI Group). Solely for the purpose of consolidation within the results of BAT p.l.c. and the BAT Group, this financial information is then converted to International Financial Reporting Standards as issued by the IASB and adopted by the European Union (IFRS). To the extent any such financial information provided in these financial statements relate to the US business or RAI (and/or the RAI Group) it is provided as an explanation of the US business' or RAI’s (and/or the RAI Group’s) primary US GAAP based financial statements and information. The following table shows 2018 revenue and adjusted revenue at current rates, and 2018 adjusted revenue translated using 2017 rates of exchange. The 2017 figures are stated at the 2017 rates of exchange. 2018 2017 Adjusted Revenue Constant rates £m Translation exchange £m Adjusted Revenue Current rates £m Adjusting items Current rates £m Revenue Current rates £m Adjusted Revenue £m Adjusting items £m Revenue £m United States 9,838 (343 ) 9,495 – 9,495 4,160 – 4,160 APME 5,250 (368 ) 4,882 – 4,882 4,973 – 4,973 AMSSA 4,560 (449 ) 4,111 – 4,111 4,323 – 4,323 ENA 6,112 (288 ) 5,824 180 6,004 5,850 258 6,108 Revenue 25,760 (1,448 ) 24,312 180 24,492 19,306 258 19,564 Note: adjusting items in revenue are in respect of excise included in goods acquired from a third party under short term arrangements and then passed on to customers. This is deemed as adjusting due to the distorting nature to revenue and operating margin. The following table shows 2017 revenue and adjusted revenue at current rates, and 2017 adjusted revenue translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange. 2017 2016 Adjusted Revenue Constant rates £m Translation exchange £m Adjusted Revenue Current rates £m Adjusting items Current rates £m Revenue Current rates £m Revenue £m United States 3,958 202 4,160 – 4,160 – APME 4,776 197 4,973 – 4,973 4,769 AMSSA 4,365 (42 ) 4,323 – 4,323 4,038 ENA 5,507 343 5,850 258 6,108 5,323 Revenue 18,606 700 19,306 258 19,564 14,130 Note: adjusting items in revenue are in respect of excise included in goods acquired from a third party under short term arrangements and then passed on to customers. This is deemed as adjusting due to the distorting nature to revenue and operating margin. The following table shows 2018 profit from operations and adjusted profit from operations at current rates, and 2018 adjusted profit from operations translated using 2017 rates of exchange. The 2017 figures are stated at the 2017 rates. 2018 2017 Adjusted* segment result Constant rates £ m Translation exchange £ m Adjusted* segment result Current rates £ m Adjusting* items £ m Segment result Current rates £ m Adjusted* segment result £m Adjusting* items £m Segment result £m United States 4,686 (175 ) 4,511 (505 ) 4,006 1,928 (763 ) 1,165 APME 2,099 (151 ) 1,948 (90 ) 1,858 2,049 (147 ) 1,902 AMSSA 1,922 (184 ) 1,738 (194 ) 1,544 1,782 (134 ) 1,648 ENA 2,217 (67 ) 2,150 (245 ) 1,905 2,170 (473 ) 1,697 Profit from operations 10,924 (577 ) 10,347 (1,034 ) 9,313 7,929 (1,517 ) 6,412 Net finance costs (1,415 ) 30 (1,385 ) 4 (1,381 ) (889 ) (205 ) (1,094 ) United States – – – – – 624 23,195 23,819 APME 417 (33 ) 384 32 416 384 29 413 ENA 3 – 3 – 3 4 (27 ) (23 ) Share of post-tax results of associates and joint ventures 420 (33 ) 387 32 419 1,012 23,197 24,209 Profit/(loss) before taxation 9,929 (580 ) 9,349 (998 ) 8,351 8,052 21,475 29,527 Taxation (charge)/credit on ordinary activities (2,508 ) 144 (2,364 ) 223 (2,141 ) (2,091 ) 10,220 8,129 Profit for the year 6,210 37,656 * The adjustments to profit from operations, net finance costs and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(h), note 4(b), note 5(a), and note 6(b), 6(d) and 6(e), respectively. The following table shows 2017 profit from operations and adjusted profit from operations at current rates, and 2017 adjusted profit from operations translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange. 2017 2016 Adjusted* segment result Constant rates £m Translation exchange £m Adjusted* segment result Current rates £m Adjusting* items £m Segment result Current rates £m Adjusted* segment result £m Adjusting* items £m Segment result £m United States 1,827 101 1,928 (763 ) 1,165 – – – APME 1,962 87 2,049 (147 ) 1,902 1,972 (198 ) 1,774 AMSSA 1,799 (17 ) 1,782 (134 ) 1,648 1,684 (262 ) 1,422 ENA 2,017 153 2,170 (473 ) 1,697 1,824 (345 ) 1,479 7,605 324 7,929 (1,517 ) 6,412 5,480 (805 ) 4,675 Fox River** – – (20 ) (20 ) Profit from operations 7,605 324 7,929 (1,517 ) 6,412 5,480 (825 ) 4,655 Net finance (costs)/income (833 ) (56 ) (889 ) (205 ) (1,094 ) (529 ) (108 ) (637 ) United States 593 31 624 23,195 23,819 991 889 1,880 APME 354 30 384 29 413 333 11 344 AMSSA – – – – – – – – ENA 4 – 4 (27 ) (23 ) 3 – 3 Share of post-tax results of associates and joint ventures 951 61 1,012 23,197 24,209 1,327 900 2,227 Profit/(loss) before taxation 7,723 329 8,052 21,475 29,527 6,278 (33 ) 6,245 Taxation on ordinary activities (2,017 ) (74 ) (2,091 ) 10,220 8,129 (1,473 ) 67 (1,406 ) Profit for the year 37,656 4,839 * The adjustments to profit from operations, net finance (costs)/income and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(h), note 4(b), note 5(a) and note 6(b), 6(d) and 6(e) respectively. ** The Fox River charge in 2016 (see note 3(g) and note 28) has not been allocated to any segment as it neither relates to current operations nor the tobacco business. It has been presented separately from the segmental reporting which is used to evaluate segment performance and to allocate resources, and is reported to the chief operating decision maker on this basis. Adjusted profit from operations at constant rates of £10,924 million (2017: £7,605 million; 2016: £5,197 million) excludes certain depreciation, amortisation and impairment charges as explained in notes 3(e),(f) and (3h). These are excluded from segmental profit from operations at constant rates as follows: 2018 2017 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m United States 158 (4 ) 154 289 443 59 116 175 APME 111 (6 ) 105 22 127 111 24 135 AMSSA 100 1 101 115 216 102 32 134 ENA 148 (5 ) 143 109 252 162 296 458 517 (14 ) 503 535 1,038 434 468 902 2017 2016 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m United States 57 2 59 116 175 – – – APME 109 2 111 24 135 114 52 166 AMSSA 99 3 102 32 134 121 48 169 ENA 153 9 162 296 458 160 112 272 418 16 434 468 902 395 212 607 External revenue and non-current assets other than financial instruments, deferred tax assets and retirement benefit assets are analysed between the UK and all foreign countries at current rates of exchange as follows: United Kingdom All foreign countries Group Revenue is based on location of sale 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m External revenue 184 203 266 24,308 19,361 13,864 24,492 19,564 14,130 United Kingdom All foreign countries Group 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Intangible assets 529 514 123,484 117,271 124,013 117,785 Property, plant and equipment 404 406 4,762 4,476 5,166 4,882 Investments in associates and joint ventures – – 1,737 1,577 1,737 1,577 The consolidated results of RAI companies operating in the United States met the criteria for separate disclosure under the requirements of IFRS 8 Operating Segments The main acquisitions comprising the goodwill balance of £46,163 million (2017: £44,147 million), included in intangible assets, are provided in note 9. Included in investments in associates and joint ventures are amounts of £1,682 million (2017: £1,527 million) attributable to the investment in ITC Ltd. Further information is provided in notes 5 and 11. |
Profit from operations
Profit from operations | 12 Months Ended |
Dec. 31, 2018 | |
Profit From Operations [Abstract] | |
Profit from operations | 3 Profit from operations Enumerated below are movements in costs that have impacted profit from operations in 2018, 2017 and 2016. These include changes in our underlying business performance, as well as the impact of adjusting items, as defined in note 1, in profit from operations (note 3(d) to 3(h)). (a) Employee benefit costs 2018 £ m 2017 £m 2016 £m Wages and salaries 2,463 2,131 1,882 Social security costs 207 216 207 Other pension and retirement benefit costs (note 12) 212 215 101 Share-based payments – equity and cash-settled (note 25) 123 117 84 3,005 2,679 2,274 (b) Depreciation, amortisation and impairment costs 2018 £ m 2017 £m 2016 £m Intangibles – amortisation and impairment of trademarks and similar intangibles (note 3(f)) 377 383 149 – amortisation and impairment of other intangibles 111 140 81 Property, plant and equipment – depreciation and impairment 550 379 377 1,038 902 607 Included within depreciation are gains and losses recognised on the sale of property, plant and equipment. With effect from 1 January 2018, cigarette making machinery within property, plant and equipment is depreciated at 5% per annum (previously, between 3% and 7% per annum). The impact of this change in accounting estimate is a net reduction in depreciation expense for the year of £53 million. (c) Other operating expenses include: 2018 £ m 2017 £m 2016 £m Research and development expenses (excluding employee benefit costs and depreciation) 105 80 53 Exchange differences (15 ) (6 ) (2 ) Hedge ineffectiveness within operating profit (8 ) – – Rent of plant and equipment (operating leases) – minimum lease payments 61 41 20 Rent of property (operating leases) – minimum lease payments 110 85 51 Auditor's remuneration Total expense for audit services pursuant to legislation: – fees to KPMG LLP for Parent Company and Group audit 6.3 6.3 2.0 – fees to KPMG LLP firms and associates for local statutory and Group reporting audits 8.8 11.3 7.2 Total audit fees expense – KPMG LLP firms and associates 15.1 17.6 9.2 Audit fees expense to other firms 0.2 0.2 – Total audit fees expense 15.3 17.8 9.2 Fees to KPMG LLP firms and associates for other services: – audit-related assurance services 9.4 8.0 0.2 – other assurance services 0.3 4.1 0.1 – tax advisory services – – 0.2 – tax compliance – 0.2 0.3 – audit of defined benefit schemes of the Company 0.4 – – – other non-audit services – – 1.4 10.1 12.3 2.2 The total auditor’s remuneration to KPMG firms and associates included above are £25.2 million (2017: £29.9 million; 2016: £11.4 million). During 2018 the Group incurred expenditure of £8.7 million (2017: £nil million, 2016: £nil million) within audit-related assurance services associated with the controls attestation of the Group’s implementation of Sarbanes-Oxley Section 404 during 2018. During 2017, the Group incurred additional expenditure with the Group’s auditor, as part of the acquisition of the remaining shares in RAI not previously owned. This was due to the Securities and Exchange Commission (SEC) listing requirements to re-audit 2015 and 2016 under Public Company Accounting Oversight Board (“PCAOB”) standards, to audit the purchase price allocation, to provide assurance services on the registration documents and to provide, amongst other things, assurance services with regards to the planned 2018 implementation of Sarbanes-Oxley Section 404. Accordingly, the following costs, related to the acquisition of RAI and treated as an adjusting item, were incurred within the respective categories: audit-related assurance service £7.7 million and within other assurance . Under SEC regulations, the remuneration to KPMG firms and associates of £25.2 million in 2018 (2017: £30.1 million; 2016: £11.4 million) is required to be presented as follows: audit fees £24.7 million (2017: £29.2 million; 2016: £9.2 million), audit-related fees £0.4 million (2017: £0.5 million; 2016: £0.2 million), tax fees £nil million (2017: £0.2 million; 2016: £0.5 million) and all other fees £0.1 million (2017: £0.2 million; 2016: £1.5 million). Total research and development costs including employee benefit costs and depreciation are £258 million (2017: £191 million; 2016: £144 million). (d) Master Settlement Agreement In 1998, the major US cigarette manufacturers (including R.J. Reynolds Tobacco Company, Lorillard and Brown & Williamson, businesses which are now part of Reynolds American) entered into the Master Settlement Agreement (MSA) with attorneys general representing most US states and territories. The MSA imposes a perpetual stream of future payment obligations on the major US cigarette manufacturers. The amounts of money that the participating manufacturers are required to annually contribute are based upon, amongst other things, the volume of cigarettes sold and market share (based on cigarette shipments in that year). During 2012, R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company (SFNTC), various other tobacco manufacturers, 17 states, the District of Columbia and Puerto Rico reached an agreement related to the Non-Participating Manufacturer (NPM) adjustment under the MSA and three more states joined the agreement in 2013. Under this agreement, R.J. Reynolds Tobacco Company will receive credits, currently estimated to be more than US$1 billion, in respect of its Non-Participating Manufacturer (NPM) Adjustment claims related to the period from 2003 to 2012. These credits have been and will be applied against the companies’ MSA payments over a period of five years from 2013, subject to, and dependent upon, meeting the various ongoing performance obligations. During 2014, two additional states agreed to settle NPM disputes related to claims for the period 2003 to 2012. It is estimated that R.J. Reynolds Tobacco Company will receive US$170 million in credits, which will be applied over a five-year period from 2014. During 2015, another state agreed to settle NPM disputes related to claims for the period 2004 to 2014. It is estimated that R.J. Reynolds Tobacco Company will receive US$285 million in credits, which will be applied over a four-year period from 2015. During 2016, no additional states agreed to settle NPM disputes. During 2017, two more states agreed to settle NPM disputes related to claims for the period 2004 to 2014. It is estimated that R.J. Reynolds Tobacco Company will receive US$61 million in credits, which will be applied over a five-year period from 2017. During 2018, nine more states agreed to settle NPM disputes related to claims for the period 2004 to 2019, with an option through 2022, subject to certain conditions. It is estimated that R.J. Reynolds Tobacco Company will receive US$182 million in credits for settled periods through 2017, which will be applied over a five-year period from 2018. Also in 2018, one additional state agreed to settle NPM disputes related to claims for the period 2004 to 2024, subject to certain conditions. It is estimated that R.J. Reynolds Tobacco Company will receive US$205 million in credits for settled periods through 2017, which will be applied over a five-year period from 2019. Credits in respect of future years’ payments and the NPM Adjustment claims would be accounted for in the applicable year and will not be treated as adjusting items. Only credits in respect of prior year payments are included as adjusting items. The BAT Group is subject to substantial payment obligations under the MSA and the state settlement agreements with the states of Mississippi, Florida, Texas and Minnesota (such settlement agreements, collectively State Settlement Agreements). RAl’s operating subsidiaries’ expenses and payments under the MSA and the State Settlement Agreements for 2017 amounted to US$2,856 million in respect of settlement expenses and US$4,612 million in respect of settlement cash payments. RAl’s operating subsidiaries’ expenses and payments under the MSA and the State Settlement Agreements for 2018 amounted to US$2,741 million in respect of settlement expenses and US$917 million in respect of settlement cash payments. (e) Restructuring and integration costs Restructuring costs reflect the costs incurred as a result of initiatives to improve the effectiveness and the efficiency of the Group as a globally integrated enterprise, including the relevant operating costs of implementing the new operating model. These costs represent additional expenses incurred, which are not related to the normal business and day-to-day activities. The new operating model is underpinned by a global single instance of SAP with full deployment occurring during 2016 with benefits already realised within the business and future savings expected in the years to come. The initiatives also include a review of the Group’s trade marketing and manufacturing operations, supply chain, overheads and indirect costs, organisational structure and systems and software used. The costs of the Group’s initiatives together with the costs of integrating acquired businesses into existing operations, including acquisition costs, are included in profit from operations under the following headings: 2018 £ m 2017 £m 2016 £m Employee benefit costs 176 193 240 Depreciation, amortisation and impairment costs 48 85 64 Other operating expenses 145 330 325 Other operating income (6 ) (8 ) (26 ) 363 600 603 Restructuring and integration costs in 2018 include integration costs associated with the acquisition of RAI and ongoing costs of implementing the revisions to the Group’s operating model. This includes the cost of packages in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. The costs also cover downsizing activities in Russia, Germany and APME, partially offset by the income from sale of certain assets that have become available as part of the downsizing activities. Restructuring and integration costs in 2017 include advisor fees and costs incurred related to the acquisition of the remaining shares in RAI not already owned by the Group, that completed on 25 July 2017 (note 24). It also includes the implementation of a new operating model and the cost of redundancy packages in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. The costs also cover integration costs incurred as a result of the RAI acquisition, factory closure and downsizing activities in Germany and Malaysia, certain exit costs and asset write-offs related to the withdrawal from the Philippines. Restructuring and integration costs in 2016 principally related to the restructuring initiatives directly related to implementation of a new operating model and the cost of initiatives in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. The costs also covered factory closures and downsizing activities in Germany, Malaysia and Brazil, certain exit costs and asset write-offs related to the change in approach to the commercialisation of Voke, uncertainties surrounding regulatory changes and restructurings in Japan and Australia. In 2018, other operating income includes gains from the sale of land and buildings in The Netherlands and in 2017, this included gains from the sale of land and buildings in Brazil. In 2016, this included gains from the sale of land and buildings in Malaysia. (f) Amortisation and impairment of trademarks and similar intangibles Acquisitions including RAI, TDR d.o.o. (TDR) and Skandinavisk Tobakskompagni (ST) in previous years, have resulted in the capitalisation of trademarks and similar intangibles which are amortised over their expected useful lives, which do not exceed 20 years. The amortisation and impairment charge of £377 million (2017: £383 million; 2016: £149 million) is included in depreciation, amortisation and impairment costs in profit from operations. (g) Fox River As explained in note 28, a Group subsidiary has certain liabilities in respect of indemnities given on the purchase and disposal of former businesses in the United States and in 2011, the subsidiary provided £274 million in respect of claims in relation to environmental clean-up costs of the Fox River. On 30 September 2014, a Group subsidiary, NCR, Appvion and Windward Prospects entered into a Funding Agreement with regard to the costs for the clean-up of Fox River. In January 2017, NCR and Appvion entered into a consent decree with the US Government to resolve how the remaining clean-up will be funded and to resolve further outstanding claims between them. The Consent Decree was approved by a US District Judge in August 2017 but is currently subject to appeal in the US Seventh Circuit Court of Appeals, refer to note 28 for further details. In July 2016, the High Court ruled in a Group subsidiary’s favour that a dividend of €135 million paid by Windward to Sequana in May 2009 was a transaction made with the intention of putting assets beyond the reach of the Group subsidiary and of negatively impacting its interests. On 10 February 2017, further to a hearing in January 2017 to determine the relief due, the Court found in the Group subsidiary’s favour, ordering that Sequana must pay an amount up to the full value of the dividend plus interest which equates to around US$185 million, related to past and future clean-up costs. The Court granted all parties leave to appeal and Sequana a stay in respect of the above payments. In June 2018, the Court of Appeal heard arguments in the Sequana Claims Appeal (as defined in note 28). On 6 February 2019, the Court of Appeal gave judgment upholding the High Court’s findings, with one immaterial change to the method of calculating the damages awarded. Sequana therefore remains liable to pay the above mentioned dividend. Due to the uncertain outcome of the case no asset has been recognised in relation to this ruling. In February 2017, Sequana entered into a process in France seeking court protection (the “Sauvegarde”), exiting the Sauvegarde in June 2017. No payments have been received. The provision is £108 million at 31 December 2018 (2017: £138 million). Based on this Funding Agreement, £30 million has been paid in 2018, which includes legal costs of £5 million (2017: £25 million, including legal costs of £7 million; 2016: £17 million, including legal costs of £11 million). In addition, in 2016 the devaluation of sterling against the US dollar led to a charge of (h) Other adjusting items In 2018, the Group incurred £294 178 In 2018, the European Securities and Markets Authority (ESMA) recognised the specific issues related to Venezuela and proposed that companies with exposure to Venezuela use an “estimated” exchange rate rather than the official exchange rate, as otherwise required under IAS 21. Accordingly, the Group has used an exchange rate calculated with reference to the estimated inflation since the latest dividend payment in 2010. In addition, the net assets of the Group’s Venezuelan operations are subject to accounting adjustments IAS 29 Financial Reporting in Hyperinflationary Economies believes that such a revaluation is not reflective of the recoverable value of those assets and have incurred an impairment charge of 110 million. This charge has been treated as an adjusting item as it does not reflect the underlying performance of the Group. The Group has also recognised a gain of £ million within net finance costs (note 4), being the partial counter-party to the above non-monetary asset movement, generating a monetary gain due to hyperinflation accounting under IAS 29. In 2017, the release of the fair value acquisition accounting adjustments to finished goods inventories of £465 million on the RAI acquisition has been adjusted within ‘Changes in inventories of finished goods and work in progress’. Also included in 2017 is the impairment of certain assets of £69 million related to a third-party distributor (Agrokor) in Croatia, that has been adjusted within ‘other operating expenses’. In 2016, the Board of Audit and Inspection of Korea (“BAI”) concluded its tax assessment in relation to the 2014 year-end tobacco inventory, and imposed additional sales tax (excise and VAT) and penalties. This resulted in the recognition of a £53 million charge by a Group subsidiary. Management deems the tax and penalties to be unfounded and has appealed to the tax tribunal against the assessment. Based on the legal opinion from a local law firm, management believes that this appeal will be successful, and that the findings of the BAI will be reversed. On grounds of materiality and the high likelihood of the tax and penalties being reversed in future, the Group has classified the tax and penalties charge as an adjusting item in 2016. |
Net finance costs
Net finance costs | 12 Months Ended |
Dec. 31, 2018 | |
Net Finance Costs [Abstract] | |
Net finance costs | 4 Net finance costs (a) Net finance costs/(income) 2018 £m 2017 £m 2016 £m Interest expense 1,593 1,081 645 Facility fees 13 13 5 Interest related to adjusting tax payables (note 4(b)) 41 43 25 Loss on bond redemption (note 4(b)) – – 101 Acquisition of RAI (note 4(b)) – 153 – Fair value changes on derivative financial instruments and hedged items (154 ) (149 ) (458 ) Hedge ineffectiveness (note 4(b)) – 9 – Venezuela hyperinflation (note 4(b)) (45 ) – – Exchange differences on financial liabilities 36 47 363 Finance costs 1,484 1,197 681 Interest under the effective interest method (68 ) (83 ) (68 ) Dividend income – (1 ) – Hedge ineffectiveness (note 4(b)) – – (18 ) Exchange differences on financial assets (35 ) (19 ) 42 Finance income (103 ) (103 ) (44 ) Net finance costs 1,381 1,094 637 The Group manages foreign exchange gains and losses and fair value changes on a net basis excluding adjusting items, which are explained in note 4(b); and the derivatives that generate the fair value changes are in note 16. Facility fees principally relate to the Group's central banking facilities. (b) Adjusting items included in net finance costs Adjusting items are significant items in net finance costs which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. In 2018, the Group incurred interest on adjusting tax payables of £41 million (2017: £43 million; 2016: £25 million). This included interest of £25 million (2017: £25 million; 2016: £25 million) in relation to the Franked Investment Income Group Litigation Order (FII GLO) (note 6(b)) and interest of £12 million in relation to retrospective guidance by a tax authority on overseas withholding tax. Also in 2018, the Group recognised a monetary gain of £45 million related to the application of hyperinflationary accounting in Venezuela (note 3(h)). In 2017, the Group incurred pre-financing costs related to the acquisition of RAI of £153 million. Also in 2017, the Group realised a £9 million charge in relation to the reversal of a gain recognised in 2016, related to hedge ineffectiveness on external swaps following the referendum regarding “Brexit”. The gain in 2016 of £18 million was deemed to be adjusting as it is not representative of the underlying performance of the business and so the partial reversal has also been deemed as an adjusting item. In 2016, the Group redeemed a US$700 million bond, prior to its original maturity date of 15 November 2018. This led to a loss of US$130 million (£101 million), which has been treated as an adjusting item. |
Associates and joint ventures
Associates and joint ventures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Associates And Joint Ventures [Abstract] | |
Associates and joint ventures | 5 Associates and joint ventures 2018 2017 2016 Total £m Group’s share £m Total £m Group’s share £m Total £m Group’s share £m Revenue 7,235 2,058 14,085 4,794 16,491 5,997 Profit from operations* 2,128 630 4,342 24,854 9,379 3,740 Net finance costs (8 ) (3 ) (279 ) (116 ) (477 ) (200 ) Profit on ordinary activities before taxation 2,120 627 4,063 24,738 8,902 3,540 Taxation on ordinary activities (678 ) (201 ) (1,441 ) (522 ) (3,280 ) (1,308 ) Profit on ordinary activities after taxation 1,442 426 2,622 24,216 5,622 2,232 Non-controlling interests (24 ) (7 ) (22 ) (7 ) (17 ) (5 ) Post-tax results of associates and joint ventures 1,418 419 2,600 24,209 5,605 2,227 Comprised of: – adjusted share of post-tax results of associates and joint ventures 1,308 387 2,785 1,012 3,461 1,327 – issue of shares and change in shareholding 75 22 98 29 36 11 – gain on deemed divestment of RAI – – – 23,288 – – – gain on disposal of assets – – – – 2,231 941 – other 35 10 (283 ) (120 ) (123 ) (52 ) 1,418 419 2,600 24,209 5,605 2,227 * The gain on deemed divestment of RAI is recognised in the Group’s share of associates profit from operations. Enumerated below are movements that have impacted the post-tax results of associates and joint ventures in 2018, 2017 and 2016. (a) Adjusting items In 2018, the Group’s interest in ITC Ltd. (ITC) decreased from 29.71% to 29.57% (2017: 29.89% to 29.71%; 2016: 30.06% to 29.89%) as a result of ITC issuing ordinary shares under the ITC Employee Share Option Scheme. The issue of these shares and change in the Group’s share of ITC resulted in a gain of £22 million (2017: £29 million; 2016: £11 million), which is treated as a deemed partial disposal and included in the income statement. ITC has also recognised an adjusting gain in respect of the release of certain provisions related to a tax claim, the Group’s share of which was £10 million. On 25 July 2017, the Group announced the completion of the acquisition of the 57.8% of RAI the Group did not already own. As at this date RAI ceased to be reported as an associate and has become a fully owned subsidiary. Accordingly, as at that date, the Group was deemed to divest its investment in RAI as an associate and consolidated RAI in accordance with IFRS 10 Consolidated Financial Statements In 2017, due to a deterioration in the financial performance of Tisak d.d. (Tisak), linked to the financial difficulties associated with a third-party distributor (Agrokor) in Croatia, the Group impaired the carrying value of this investment. This resulted in a charge of £27 million to the income statement that has been reported as an “other” adjusting item. In 2016, RAI recognised a gain in relation to the sale of the international rights to Natural American Spirit to the Japan Tobacco Group of companies (JT) of US$4,861 million. The Group’s share of this net gain amounted to £941 million (net of tax). In 2017, RAI recognised, prior to acquisition by the Group, the following amounts in ‘other’: transaction costs associated with the acquisition by the Group of US$125 million, the Group’s share of which is £33 million (net of tax) (2016: £nil million), deferred tax charges in respect of temporary differences on trademarks of US$51 million, the Group’s share of which is £18 million (2016: £nil million), restructuring charges of US$79 million, the Group’s share of which is £14 million (net of tax) (2016: US$36 million, the Group’s share of which is £7 million) and costs in respect of a number of Engle progeny lawsuits and other tobacco litigation charges that amounted to US$162 million, the Group’s share of which is £32 million (net of tax) (2016: US$86 million, the Group’s share of which is £17 million (net of tax)). Additionally, there is income of US$17 million (2016: US$6 million) related to the Non-Participating Manufacturer (NPM) Adjustment claims of the states no longer challenging the findings of non-diligence entered against them by an Arbitration Panel, the Group’s share of which is £4 million (net of tax) (2016: £2 million). The remaining costs in 2016 includes income relating to the early termination of the Manufacturing Agreement between BATUS Japan Inc. and RJRT (note 27) of US$90 million, the Group’s share of which is £18 million (net of tax) and transaction costs of US$5 million and financing costs of US$243 million, connected with the acquisition of Lorillard, the Group's share is £1 million (net of tax) and £47 million of financing costs. (b) Master Settlement Agreement For information on the Master Settlement Agreement applicable to RAI as an associate for the period up to and including 24 July 2017 (note 3(d)). (c) Other financial information The Group’s share of the results of associates and joint ventures is shown in the table below. 2018 2017 2016 Group’s share £m Group’s share £m Group’s share £m Profit on ordinary activities after taxation – attributable to owners of the Parent 419 24,209 2,227 Other comprehensive income: Items that may be reclassified to profit & loss (38 ) (918 ) 1,415 Items that will not be reclassified to profit & loss 6 25 20 Total comprehensive income 387 23,316 3,662 Summarised financial information of the Group’s associates and joint ventures is shown below. 2018 ITC £m Others £m Total £m Revenue 5,072 2,163 7,235 Profit on ordinary activities before taxation 2,059 61 2,120 Post-tax results of associates and joint ventures 1,373 45 1,418 Other comprehensive income (110 ) – (110 ) Total comprehensive income 1,263 45 1,308 2017 RAI* £m ITC £m Others £m Total £m Revenue 5,525 6,607 1,953 14,085 Profit on ordinary activities before taxation 2,017 2,054 (8 ) 4,063 Post-tax results of associates and joint ventures 1,261 1,362 (23 ) 2,600 Other comprehensive income (595 ) (135 ) (8 ) (738 ) Total comprehensive income 666 1,227 (31 ) 1,862 * The information presented above for RAI is for the period from 1 January 2017 up to and including 24 July 2017 (see note 24). 2016 RAI £m ITC £m Others £m Total £m Revenue 9,224 5,350 1,917 16,491 Profit on ordinary activities before taxation 7,111 1,743 48 8,902 Post-tax results of associates and joint ventures 4,457 1,114 34 5,605 Other comprehensive income 3,125 712 (178 ) 3,659 Total comprehensive income 7,582 1,826 (144 ) 9,264 |
Taxation on ordinary activities
Taxation on ordinary activities | 12 Months Ended |
Dec. 31, 2018 | |
Major Components Of Tax Expense Income [Abstract] | |
Taxation on ordinary activities | 6 Taxation on ordinary activities (a) Summary of taxation on ordinary activities 2018 £m 2017 £m 2016 £m Revised UK corporation tax 60 26 7 Comprising: – current year tax expense 66 26 7 – adjustments in respect of prior periods (6 ) - - Overseas tax 2,455 1,617 1,395 Comprising: – current year tax expense 2,460 1,615 1,382 – adjustments in respect of prior periods (5 ) 2 13 Total current tax 2,515 1,643 1,402 Deferred tax (374 ) (9,772 ) 4 Comprising: – deferred tax relating to origination and reversal of temporary differences (304 ) (152 ) 4 – deferred tax relating to changes in tax rates (70 ) (9,620 ) - 2,141 (8,129 ) 1,406 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers (b) Franked Investment Income Group Litigation Order The Group is the principal test claimant in an action in the United Kingdom against HM Revenue and Customs (HMRC) in the Franked Investment Income Group Litigation Order (FII GLO). There are 25 corporate groups in the FII GLO. The case concerns the treatment for UK corporate tax purposes of profits earned overseas and distributed to the UK. The original claim was filed in 2003. The trial of the claim was split broadly into issues of liability and quantification. The main liability issues were heard by the High Court, Court of Appeal and Supreme Court in the UK and the European Court of Justice in the period to November 2012. The detailed technical issues of the quantification mechanics of the claim were heard by the High Court during May and June 2014 and the judgment handed down on 18 December 2014. The High Court determined that in respect of issues concerning the calculation of unlawfully charged corporation tax and advance corporation tax, the law of restitution including the defence on change of position and questions concerning the calculation of overpaid interest, the approach of the Group was broadly preferred. The conclusion reached by the High Court would, if upheld, produce an estimated receivable of £1.2 billion for the Group. Appeals on a majority of the issues were made to the Court of Appeal, which heard the arguments in June 2016. The Court of Appeal determined in November 2016 on the majority of issues that the conclusion reached by the High Court should be upheld. HMRC have sought permission to appeal to the Supreme Court on all issues. A decision on whether permission will be granted is anticipated in early 2019. If permission is granted the Supreme Court will not be expected to hand down its judgment until 2020. In July 2018, the Supreme Court handed down its judgment in the Prudential Assurance Company Ltd case, which is closely related to the FII GLO. Applying the Prudential judgment reduces the value of the FII claim to approximately £0.6 billion, mainly as the result of the application of simple interest. During 2015, HMRC paid to the Group a gross amount of £1,224 million in two separate payments. The payments made by HMRC have been made without any admission of liability and are subject to refund were HMRC to succeed on appeal. The second payment in November 2015 followed the introduction of a new 45% tax on the interest component of restitution claims against HMRC. HMRC held back £261 million from the second payment contending that it represents the new 45% tax on that payment, leading to total cash received by the Group of £963 million. Actions challenging the legality of the withholding of the 45% tax have been lodged by the Group. The First Tier Tribunal found in favour of HMRC in July 2017 and the Group’s appeal to the Upper Tribunal was heard in July 2018 and judgment has not yet been handed down. Due to the uncertainty of the amounts and eventual outcome the Group has not recognised any impact in the Income Statement in the current or prior period. The receipt, net of the deduction by HMRC, is held as deferred income as disclosed in note 22. Any future recognition as income will be treated as an adjusting item, due to the size of the amount, with interest of £25 million for the 12 months to 31 December 2018 (2017: £25 million; 2016: £25 million) accruing on the balance, which was also treated as an adjusting item. (c) Factors affecting the taxation charge The taxation charge differs from the standard 19% (2017: 19%; 2016: 20%) rate of corporation tax in the UK. The major causes of this difference are listed below: 2018 2017 2016 Revised £m % £m % £m % Profit before tax 8,351 29,527 6,245 Less: share of post-tax results of associates and joint ventures (see note 5) (419 ) (24,209 ) (2,227 ) 7,932 5,318 4,018 Tax at 19% (2017: 19%; 2016: 20%) on the above 1,507 19.0 1,010 19.0 804 20.0 Factors affecting the tax rate: Tax at standard rates other than UK corporation tax rate 384 4.8 389 7.3 93 2.3 Other national tax charges 204 2.6 119 2.2 74 1.9 Permanent differences 7 0.1 40 0.8 143 3.6 Overseas tax on distributions – – 25 0.5 41 1.0 Overseas withholding taxes 155 1.9 191 3.6 200 5.0 Double taxation relief on UK profits (35 ) (0.4 ) (29 ) (0.5 ) (8 ) (0.2 ) Unutilised/(utilised) tax losses 5 0.1 (38 ) (0.7 ) 32 0.8 Adjustments in respect of prior periods (11 ) (0.1 ) 2 0.0 13 0.3 Deferred tax relating to changes in tax rates (70 ) (0.9 ) (9,620 ) (180.9 ) – – Deemed US repatriation tax – – 34 0.6 – – Release of deferred tax on unremitted earnings of associates – – (180 ) (3.4 ) – – Additional net deferred tax (credits)/charges (5 ) (0.1 ) (72 ) (1.4 ) 14 0.3 0.0 0.0 2,141 27.0 (8,129 ) (152.9 ) 1,406 35.0 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers In 2016, permanent differences include non-tax deductible expenses for a number of items including expenditure relating to restructuring and integration costs such as factory rationalisation (d) Adjusting items included in taxation In 2018, adjusting items in taxation relate to a £79 million credit due to changes in US state tax rates in the period, relating to the revaluation of deferred tax liabilities arising on trademarks recognised in the RAI acquisition in 2017, and a £55 million charge related to retrospective guidance issued by a tax authority in the ENA region regarding the application of withholding tax (WHT) between 2015 and 2017. On 22 December 2017, the United States Government enacted comprehensive tax legislation which, among other things, changed the Federal tax rate to 21% from 1 January 2018. This revised rate has been used to revalue net deferred tax liabilities in the United States, leading to a credit to the income statement of £9,620 million. The net deferred tax liabilities largely relate to the difference in tax value versus the fair market value of trademarks accounted for under IFRS as part of the RAI acquisition. The legislation also imposed a one-time deemed repatriation tax on accumulated foreign earnings. The impact of the repatriation tax, less foreign tax credits, was £34 million. IFRS also requires entities to provide deferred taxation on the undistributed earnings of associates and joint ventures. From the date of the acquisition of the remaining shares in RAI not already owned by the Group, the Group has consolidated the results of RAI as a wholly owned subsidiary and as such the deferred tax liability of £180 million on unremitted earnings of RAI as an associate was released to the income statement in 2017. In 2016, the Group’s share of the gain on the divestiture of intangibles and other assets by RAI to Japan Tobacco International was £941 million. Given that the profit on this item was recognised as an adjusting item by the Group, the additional deferred tax charge of £61 million on the potential distribution of these undistributed earnings was also treated as adjusting. (e) Tax on adjusting items In addition, the tax on adjusting items, separated between the different categories, as per note 7, amounted to £199 million (2017: £454 million; 2016: £128 million). The adjustment to the adjusted earnings per share (note 7) also includes £6 million (2017: £4 million; 2016: £1 million) in respect of the non-controlling interests’ share of the adjusting items net of tax. (f) Tax on items recognised directly in other comprehensive income 2018 £m 2017 £m 2016 £m Current tax (8) (4 ) (53 ) Deferred tax (7) (133 ) 70 (Charged)/credited to other comprehensive income (15) (137 ) 17 The tax relating to each component of other comprehensive income is disclosed in note 19. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | 7 Earnings per share 2018 2017 2016 Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Revised Revised Basic earnings per share (ordinary shares of 25p each) 6,032 2,285 264.0 37,485 2,044 1,833.9 4,648 1,858 250.2 Share options – 7 (0.8 ) – 7 (6.3 ) – 7 (1.0 ) Diluted earnings per share 6,032 2,292 263.2 37,485 2,051 1,827.6 4,648 1,865 249.2 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers Adjusted earnings per share calculation Earnings have been affected by a number of adjusting items, which are described in notes 3 to 6. Adjusting items are significant items in the profit from operations, net finance costs, taxation and the Group’s share of the post-tax results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance. To illustrate the impact of these items, an adjusted earnings per share calculation is shown below. Basic 2018 2017 2016 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Basic earnings per share 6,032 264.0 37,485 1,833.9 4,648 250.2 Effect of restructuring and integration costs 3(e) 363 15.9 600 29.4 603 32.4 Tax and non-controlling interests on restructuring and integration costs (83 ) (3.6 ) (133 ) (6.5 ) (90 ) (4.9 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 377 16.5 383 18.7 149 8.0 Tax on amortisation and impairment of trademarks and similar intangibles (78 ) (3.4 ) (90 ) (4.4 ) (32 ) (1.7 ) Effect of associates' adjusting items net of tax 5(a) (32 ) (1.4 ) (23,197 ) (1,134.9 ) (900 ) (48.4 ) Effect of hyperinflation on Venezuela's retained earnings 3(h),4(b) 65 2.8 – – – – Other adjusting items 3(h) 184 8.0 534 26.1 53 2.9 Tax effect on other adjusting items (44 ) (1.9 ) (184 ) (8.9 ) (5 ) (0.3 ) Deferred tax relating to changes in tax rates 13 (79 ) (3.5 ) (9,586 ) (469.0 ) – – Release of deferred tax on unremitted earnings from associates 6(d) – – (180 ) (8.8 ) – – Effect of Fox River 3(g) – – – – 20 1.1 Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – – – 61 3.3 Effect of interest on FII GLO settlement and other 4(b) 41 1.8 43 2.1 25 1.3 Effect of retrospective guidance on WHT 6(d) 55 2.4 – – – – Effect of adjusting finance costs in relation to acquisition of RAI 4(b) – – 153 7.5 – – Tax Effect of adjusting finance costs in relation to acquisition of RAI – – (49 ) (2.4 ) – – Effect of hedge ineffectiveness 4(b) – – 9 0.4 (18 ) (1.0 ) Tax effect on hedge ineffectiveness – – (2 ) (0.1 ) – – Effect of US bond buy back 4(b) – – – – 101 5.5 Adjusted earnings per share (basic) 6,801 297.6 5,786 283.1 4,615 248.4 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers . Diluted 2018 2017 2016 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Diluted earnings per share 6,032 263.2 37,485 1,827.6 4,648 249.2 Effect of restructuring and integration costs 3(e) 363 15.8 600 29.3 603 32.3 Tax and non-controlling interests on restructuring and integration costs (83 ) (3.6 ) (133 ) (6.5 ) (90 ) (4.8 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 377 16.4 383 18.7 149 8.0 Tax on amortisation and impairment of trademarks and similar intangibles (78 ) (3.4 ) (90 ) (4.4 ) (32 ) (1.7 ) Effect of associates' adjusting items net of tax 5(a) (32 ) (1.4 ) (23,197 ) (1,131.0 ) (900 ) (48.3 ) Effect of hyperinflation on Venezuela's retained earnings 3(h),4(b) 65 2.8 – – – – – – – – Other adjusting items 3(h) 184 8.0 534 26.0 53 2.9 Tax effect on other adjusting items (44 ) (1.9 ) (184 ) (8.9 ) (5 ) (0.3 ) Deferred tax relating to changes in tax rates 13 (79 ) (3.4 ) (9,586 ) (467.4 ) – – Release of deferred tax on unremitted earnings from associates 6(d) – – (180 ) (8.8 ) – – Effect of Fox River 3(g) – – – – 20 1.1 Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – – – 61 3.3 Effect of interest on FII GLO settlement and other 4(b) 41 1.8 43 2.1 25 1.3 Effect of retrospective guidance on WHT 6(d) 55 2.4 – – – – Effect of adjusting finance costs in relation to acquisition of RAI 4(b) – – 153 7.5 – – Tax Effect of adjusting finance costs in relation to acquisition of RAI – – (49 ) (2.4 ) – – Effect of hedge ineffectiveness 4(b) – – 9 0.4 (18 ) (1.0 ) Tax effect on hedge ineffectiveness – – (2 ) (0.1 ) – – Effect of US bond buy back 4(b) – – – – 101 5.5 Adjusted earnings per share (diluted) 6,801 296.7 5,786 282.1 4,615 247.5 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers . Headline earnings per share as required by the JSE Limited The presentation of headline earnings per share, as an alternative measure of earnings per share, is mandated under the JSE Listing Requirements. It is calculated in accordance with Circular 4/2018 ‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants. Basic 2018 2017 2016 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Basic earnings per share 6,032 264.0 37,485 1,833.9 4,648 250.2 Effect of impairment of intangibles, property, plant and equipment and assets held-for-sale 238 10.3 179 8.7 126 6.8 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (65 ) (2.8 ) (35 ) (1.7 ) (35 ) (1.9 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (11 ) (0.5 ) (48 ) (2.3 ) (59 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 4 0.2 13 0.6 30 1.6 Effect of gains on disposal of businesses, non-current investments and brands (10 ) (0.4 ) – – – – Tax on gains on disposal of businesses, non-current investments and brands 2 0.1 – – – – Gain on deemed disposal of RAI associate – – (23,288 ) (1,139.3 ) – – Write-off of investment in associate – – 27 1.3 – – Share of associates' gains on disposal of assets – – – – (941 ) (50.6 ) Tax effect of associates' disposal of assets – – – – 61 3.3 Issue of shares and change in shareholding in associate (22 ) (1.0 ) (29 ) (1.4 ) (11 ) (0.6 ) Headline earnings per share (basic) 6,168 269.9 14,304 699.8 3,819 205.6 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers The Group has revised 2017, as explained in notes 1 and 31. Diluted 2018 2017 2016 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Diluted earnings per share 6,032 263.2 37,485 1,827.6 4,648 249.2 Effect of impairment of intangibles, property, plant and equipment and assets held-for-sale 238 10.3 179 8.6 126 6.8 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (65 ) (2.8 ) (35 ) (1.7 ) (35 ) (1.9 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (11 ) (0.5 ) (48 ) (2.3 ) (59 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 4 0.2 13 0.6 30 1.6 Effect of gains on disposal of businesses, non-current investments and brands (10 ) (0.4 ) – – – – Tax on gains on disposal of businesses, non-current investments and brands 2 0.1 – – – – Gain on deemed disposal of RAI associate – – (23,288 ) (1,135.4 ) – – Write-off of investment in associate – – 27 1.3 – – Share of associates' gains on disposal of assets – – – – (941 ) (50.4 ) Tax effect of associates' disposal of assets – – – – 61 3.3 Issue of shares and change in shareholding in associate (22 ) (1.0 ) (29 ) (1.4 ) (11 ) (0.6 ) Headline earnings per share (diluted) 6,168 269.1 14,304 697.3 3,819 204.8 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers The Group has revised 2017, as explained in notes 1 and 31. |
Dividends and other appropriati
Dividends and other appropriations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Dividends [Abstract] | |
Dividends and other appropriations | 8 Dividends and other appropriations 2018 2017 2016 Dividends paid to owners of the parent Pence per share £m Pence per share £m Pence per share £m Ordinary shares Interim 2018 paid 15 November 2018 48.8 1,114 2018 paid 8 August 2018 48.8 1,118 2018 paid 9 May 2018 48.8 1,111 2017 paid 8 February 2018 43.6 1,004 2017 paid 28 September 2017 56.5 1,284 2016 paid 28 September 2016 51.3 961 Final 2016 paid 4 May 2017 118.1 2,181 2015 paid 5 May 2016 104.6 1,949 190.0 4,347 174.6 3,465 155.9 2,910 From 1 January 2018, the Group moved to four interim quarterly dividend payments of 48.8p per ordinary share. As part of the transition, and to ensure shareholders receive the equivalent amount of total cash payments in 2018 as they would have under the previous payment policy, an additional interim dividend of 43.6 pence per share was announced on 5 December 2017 which was paid on 8 February 2018. The dividend declared in 2018 for payment on 9 May 2018, 8 August 2018, 15 November 2018 and 7 February 2019 was £1,117 million, £1,112 million, £1,115 million and £1,119 million respectively and is estimated based on the number of shares and the proportion of dividends to be paid in foreign currency using the applicable exchange rate. This takes the total dividend declared in respect of 2018 to £4,463 million. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Intangible Assets [Abstract] | |
Intangible assets | 9 Intangible assets 2018 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 44,147 1,119 74,136 71 119,473 Accumulated amortisation and impairment (672 ) (1,016 ) (1,688 ) Net book value at 1 January 44,147 447 73,120 71 117,785 Differences on exchange 2,024 – 4,483 6,507 Additions – internal development – – – 120 120 – acquisitions (note 24) 14 – 13 – 27 – separately acquired – – 62 – 62 Reallocations (22 ) 58 30 (66 ) – Amortisation charge – (102 ) (342 ) – (444 ) Impairment – – (44 ) – (44 ) 31 December Cost 46,163 1,101 78,736 125 126,125 Accumulated amortisation and impairment (698 ) (1,414 ) (2,112 ) Net book value at 31 December 46,163 403 77,322 125 124,013 2017 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 11,023 1,054 1,255 60 13,392 Accumulated amortisation and impairment (616 ) (659 ) (1,275 ) Net book value at 1 January 11,023 438 596 60 12,117 Differences on exchange (1,189 ) (3 ) (2,669 ) – (3,861 ) Additions – internal development – – – 87 87 – acquisitions (note 24) 34,313 33 75,488 4 109,838 – separately acquired – 29 98 – 127 Reallocations – 80 – (80 ) – Amortisation charge – (88 ) (268 ) – (356 ) Impairment – (42 ) (125 ) – (167 ) 31 December Cost 44,147 1,119 74,136 71 119,473 Accumulated amortisation and impairment (672 ) (1,016 ) (1,688 ) Net book value at 31 December 44,147 447 73,120 71 117,785 Included in computer software and assets in the course of development are internally developed assets with a carrying value of £523 million (2017: £459 million). The costs of internally developed assets include capitalised expenses of employees working full time on software development projects, third-party consultants, and software licence fees from third-party suppliers. The Group has £6 million future contractual commitments (2017: £16 million) related to intangible assets. Trademarks and similar Included in the net book value of trademarks and similar intangibles are trademarks relating to the acquisition of RAI with indefinite lives amounting to £73,885 million (2017: £69,562 million). The trademarks and similar intangibles have been tested for impairment in line with the following methodology. The recoverable amounts of trademarks and similar intangibles with indefinite lives have been determined on a value-in-use basis. The value-in-use calculations use cash flows based on detailed brand budgets prepared by management using projected sales volumes and projected brand profitability covering a five-year to 10-year horizon depending on the brand and, thereafter, grown into perpetuity. The brand budgets include an allocation for corporate costs based on volumes. The discount rate of 6.5% and long-term growth rates applied to the brand value-in-use calculations have been determined by local management based on experience, specific market and brand trends, pricing expectations and costs. The brand budgets are incorporated into the budget information used in the goodwill impairment review below. Following the application of a reasonable range of sensitivities, there was no indication of impairment. Trademarks and similar Included in the net book value of trademarks and similar intangibles are trademarks relating to the acquisition of RAI £3,013 million (2017: £3,097 million), Skandinavisk Tobakskompagni (ST) £209 million (2017: £230 million) and TDR d.o.o. £40 million (2017: £61 million). During 2018, a purchase price allocation adjustment was recognised in respect of the provisional goodwill recognised as a result of the Group acquiring certain tobacco assets, including a distribution company, from Bulgartabac Holdings AD in Bulgaria. The provisional goodwill of £22 million was reclassified to trademarks and similar intangibles with definite lives. Impairment testing for goodwill Goodwill of £46,163 million (2017: £44,147 million) is included in intangible assets in the balance sheet of which the following are the significant acquisitions: RAI £35,117 million (2017: £33,062 million); Rothmans Group £4,856 million (2017: £4,834 million); Imperial Tobacco Canada £2,307 million (2017: £2,367 million); ETI (Italy) £1,478 million (2017: £1,462 million) and ST (principally Scandinavia) £1,111 million (2017: £1,102 million). The principal allocations of goodwill in the Rothmans’ acquisition are to the cash-generating units of Europe and South Africa, with the remainder mainly relating to operations in the domestic and export markets in the United Kingdom and operations in APME. As a consequence of the Group’s new regional structure effective 1 January 2018, goodwill allocated to the Western Europe cash-generating unit (2017: £4,033 million and pre-tax discount rate of 7.3%) has been combined with the goodwill allocated to the Eastern Europe cash-generating unit (2017: £980 million and pre-tax discount rate of 8.1%) to create the new Europe cash-generating unit. In 2018, goodwill was allocated for impairment testing purposes to 19 (2017: 19) individual cash-generating units – one in the United States (2017: one), five in APME (2017: five), six in AMSSA (2017: six) and seven in ENA (2017: seven). 2018 2017 Carrying amount £m Pre-tax discount rate % Carrying amount £m Pre-tax discount rate % Cash Generating Unit RAI 35,117 7.7 33,062 7.7 Canada 2,307 7.5 2,367 7.5 Europe 5,069 7.5 5,013 7.3 / 8.1 South Africa 605 10.6 661 9.6 Australia 740 7.9 775 7.9 Singapore 615 6.6 591 6.6 Malaysia 448 8.2 431 8.3 Other 1,262 1,247 Total 46,163 44,147 The recoverable amounts of all cash-generating units have been determined on a value-in-use basis. The key assumptions for the recoverable amounts of all units are the budgeted volumes, operating margins and long-term growth rates, which directly impact the cash flows, and the discount rates used in the calculation. The long-term growth rate is used purely for the impairment testing of goodwill under IAS 36 Impairment of Assets Pre-tax discount rates of between 6.6% and 22.0% (2017: 6.6% and 19.2%) were used, based on the Group’s weighted average cost of capital, taking into account the cost of capital and borrowings, to which specific market-related premium adjustments are made. These adjustments are derived from external sources and are based on the spread between bonds (or credit default swaps, or similar indicators) issued by the US or comparable governments and by the local government, adjusted for the Group’s own credit market risk. For ease of use and consistency in application, these results are periodically calibrated into bands based on internationally recognised credit ratings. The long-term growth rates and discount rates have been applied to the budgeted cash flows of each cash-generating unit. These cash flows have been determined by local management based on experience, specific market and brand trends, pricing expectations and costs, and have been endorsed by Group management as part of the consolidated Group budget. The value-in-use calculations use cash flows based on detailed financial budgets prepared by management covering a one-year period extrapolated over a 10-year horizon with growth of On 15th November 2018, the U.S. Food and Drug Administration (FDA) announced an intention to ban flavoured vaping products and menthol cigarettes. Market speculation in the days leading up to the announcement over the financial impact of a possible menthols ban had a significant negative impact on the share price of the Group. However, the Group does not believe that there is an impairment trigger at this stage on either the Newport brand or the US goodwill for the following reasons: • the multitude of procedures embedded in the comprehensive rule-making process; • the possibility that any proposed regulation fails to withstand judicial review; • the possibility that any proposed regulation would not apply to the US market for several years; • the uncertainty surrounding how any potential regulation will affect the manufacture and marketing of Newport; and • the lack of any other indicators of impairment in relation to the US business. The Group will continue to monitor developments in relation to the proposed ban on flavoured vaping products and menthol cigarettes. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Property, plant and equipment | 10 Property, plant and equipment 2018 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 1,455 267 5,552 917 8,191 Accumulated depreciation and impairment (369 ) (124 ) (2,816 ) (3,309 ) Net book value at 1 January 1,086 143 2,736 917 4,882 Differences on exchange 76 4 27 (5 ) 102 Additions – separately acquired 5 1 41 722 769 Reallocations 58 2 466 (526 ) - Depreciation (34 ) (11 ) (318 ) (363 ) Impairment (74 ) – (120 ) (194 ) Disposals (13 ) – (17 ) (30 ) 31 December Cost 1,515 268 5,763 1,108 8,654 Accumulated depreciation and impairment (411 ) (129 ) (2,948 ) (3,488 ) Net book value at 31 December 1,104 139 2,815 1,108 5,166 In 2018, the differences on exchange include £149 million of indexation in respect of the operations in Venezuela. However, management believes that such a revaluation is not reflective of the fair value of assets in Venezuela and an impairment charge of £110 million has been recognised, as explained in note 3(h). 2017 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 1,163 239 5,022 725 7,149 Accumulated depreciation and impairment (360 ) (116 ) (2,991 ) (21 ) (3,488 ) Net book value at 1 January 803 123 2,031 704 3,661 Differences on exchange (33 ) (11 ) (117 ) (49 ) (210 ) Additions – acquisitions (note 24) 349 4 626 62 1,041 – separately acquired 23 – 47 753 823 Reallocations (5 ) 35 523 (553 ) – Depreciation (29 ) (7 ) (352 ) (388 ) Impairment (1 ) (1 ) (10 ) (12 ) Disposals (4 ) – (12 ) (16 ) Net reclassifications as held-for-sale (17 ) – – (17 ) 31 December Cost 1,455 267 5,552 917 8,191 Accumulated depreciation and impairment (369 ) (124 ) (2,816 ) (3,309 ) Net book value at 31 December 1,086 143 2,736 917 4,882 Net book value of assets held under finance leases for 2018 was £16 million (2017: £29 million). The Group's finance lease arrangements relate principally to the lease of tobacco vending machines by the Group’s subsidiary in Japan. In 2017, the Group’s finance lease arrangements related principally to the lease of tobacco vending machines and buildings in Japan and Peru respectively. Assets held under finance leases are secured under finance lease obligations included in note 20. As explained in note 12, contributions to the British American Tobacco UK Pension Fund are secured by a charge over the Group’s Head Office (Globe House). Globe House is included in freehold property above with a carrying value of £185 million (2017: £187 million). 2018 £m 2017 £m Cost of freehold land within freehold property on which no depreciation is provided 255 253 Leasehold property comprises – net book value of long leasehold 100 104 – net book value of short leasehold 46 39 146 143 Contracts placed for future expenditure 141 85 |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2018 | |
Investments In Subsidiaries Joint Ventures And Associates [Abstract] | |
Investments in associates and joint ventures | 11 Investments in associates and joint ventures 2018 £m 2017 £m 1 January 1,577 9,507 Total comprehensive income (note 5) 387 23,316 Dividends (211 ) (688 ) Additions – 13 Reclassification of Reynolds American Inc. (RAI) – (30,521 ) Other equity movements (16 ) (50 ) 31 December 1,737 1,577 Non-current assets 1,225 1,127 Current assets 953 1,019 Non-current liabilities (71 ) (67 ) Current liabilities (370 ) (502 ) 1,737 1,577 ITC Ltd. (Group's share of the market value is £11,465 million (2017: £11,036 million)) 1,682 1,527 Other listed associates (Group's share of the market value is £183 million (2017: £184 million)) 20 18 Unlisted associates 35 32 1,737 1,577 On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of RAI the Group did not already own. As at that date, RAI ceased to be reported as an associate and has become a fully owned subsidiary. Accordingly, as at that date, RAI has been consolidated in accordance with IFRS 10 Consolidated Financial Statements The Effects of Changes in Foreign Exchange Rates Prior to 25 July 2017, the Group accounted for RAI as an associate, having concluded that it did not have de facto control of RAI because of the operation of the governance agreement between the Group and RAI which ensured that the Group did not have the practical ability to direct relevant activities of RAI. The Group’s investment in Tisak d.d. (Tisak) was acquired as part of the TDR transaction (note 24). During 2016, the Group entered into an agreement with Tisak’s parent Agrokor d.d. (Agrokor) to convert certain outstanding trading balances into long-term loans and an additional shareholding in Tisak. As part of the agreement, Agrokor had the right to reacquire the additional shareholding in Tisak. As a consequence of this, while the Group had legal ownership of the additional shareholding, it did not consider that the shares provided any additional equity interest and continued to account for 26% of the equity of Tisak. In 2017, due to the financial difficulties of Agrokor and Tisak, the Group fully impaired this investment. This resulted in a charge of £27 million to the income statement that has been reported as an adjusting item in note 5. In July 2018, Agrokor’s creditors approved a settlement plan proposed by Agrokor’s administrators that is expected to be implemented during 2019. In its current form, the settlement plan is unlikely to return any value to the Group on this investment. Included within the dividends amount of £211 million (2017: £688 million) are £nil million (2017: £477 million) attributable to dividends declared by RAI and £204 million (2017: £204 million) attributable to dividends declared by ITC. The principal associate undertaking of the Group is ITC Ltd. (ITC) as shown under associates undertakings and joint ventures. ITC Ltd. ITC is an Indian conglomerate based in Kolkata and maintains a presence in cigarettes, hotels, paper and packaging, agri-business and other fast-moving goods (e.g. confectionery, IT, branded apparel, personal care, greetings cards and safety matches). BAT’s interest in ITC is 29.57%. ITC prepares accounts on a quarterly basis with a 31 March year end. As permitted by IAS 28, results up to 30 September 2018 have been used in applying the equity method. This is driven by the availability of information at the half year, to be consistent with the treatment in the Group’s interim accounts. Any further information available after the date used for reporting purposes is reviewed and any material items adjusted for in the final results. The latest published information available is at 31 December 2018. 2018 £m 2017 £m Non-current assets 4,106 3,738 Current assets 2,823 3,089 Non-current liabilities (238 ) (240 ) Current liabilities (1,002 ) (1,446 ) 5,689 5,141 Group's share of ITC Ltd. (2018: 29.57%; 2017: 29.71%) 1,682 1,527 |
Retirement benefit schemes
Retirement benefit schemes | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Defined Benefit Plans [Abstract] | |
Retirement benefit schemes | 12 Retirement benefit schemes The Group’s subsidiary undertakings operate over 190 retirement benefit arrangements worldwide. The majority of scheme members belong to defined benefit schemes, most of which are funded externally and many of which are closed to new entrants. The Group also operates a number of defined contribution schemes. The liabilities arising in the defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. It is Group policy that all schemes are formally valued at least every three years. The principal schemes are in the USA, UK, Germany, Canada, The Netherlands and Switzerland. Together, schemes in these territories account for over 85% of the total obligations of the Group’s defined benefit schemes. These obligations consist mainly of final salary pension schemes which provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. In addition, the Group operates several healthcare benefit schemes, of which the most significant are in the USA and Canada. The liabilities in respect of healthcare benefits are also assessed by qualified independent actuaries, applying the projected unit credit method. All of these arrangements, including funded schemes where formal trusts or equivalents are required, have been developed and are operated in accordance with local practices and regulations where applicable in the countries concerned. For example, in the USA, the main funded pension schemes are the Reynolds American Retirement Plan and the Retirement Income Plan for Certain RAI Affiliates, and the main funded healthcare scheme is the Brown & Williamson Tobacco Corporation Welfare & Fringe Benefit Plan, all of which are established with corporate trustees that are required to run the schemes in accordance with the Plan’s rules and to comply with all relevant legislation, including the Employee Retirement Income Security Act 1974 and US law. Similarly, in the UK, the main pension scheme is the British American Tobacco UK Pension Fund, which is established under trust law and has a corporate trustee that is required to run the scheme in accordance with the Fund’s Trust Deed and Rules and to comply with the Pension Scheme Act 1993, Pensions Act 1995, Pensions Act 2004 and all the relevant legislation. Responsibility for the governance of the schemes across the Group, including investment decisions and contribution schedules, generally lies with the trustees. The trustees for each arrangement will usually consist of representatives appointed by both the sponsoring company and the beneficiaries. In the USA, the corporate trustees act as custodians with a committee of local management acting in a fiduciary capacity with regard to investment decisions, risk mitigation and administration of the arrangements. The majority of schemes are subject to local regulations regarding funding requirements. Contributions to defined benefit schemes are determined after consultation with the respective trustees and actuaries of the individual externally funded schemes, and after taking into account regulatory requirements in each territory. The Group’s contributions to funded retirement benefit schemes in 2019 are expected to be £88 million in total compared to £221 million in 2018. Contributions to the various funded schemes in the USA are agreed with the relevant corporate Trustee, the named fiduciary, scheme actuaries and the committee of local management after taking account of statutory requirements including the Pensions Protection Act of 2006, as amended. Through its subsidiaries in the USA, the Group intends to make significant regular contributions, when required, with the aim of maintaining a funding status of at least 90%, and becoming fully funded long-term. The Group contributed £ 87 pension plans and £40 Contributions to the British American Tobacco UK Pension Fund for 2017 and 2016 were agreed with the Trustee as part of a recovery plan to include £30 million a year to cover ongoing service costs, with additional contributions to eliminate a funding shortfall. Additional contributions were Total contributions payable to the UK Pension Fund are secured by a charge over the Group’s Head Office (Globe House) up to a maximum of £150 million. The charge would be triggered in the event that the Group defaults on agreed contributions due to the Fund or if an insolvency event occurs with respect to the UK entity responsible for making the payments. The charge is due to be released in 2039 but may be released earlier by negotiation or if the assets of the Fund are sufficient to achieve certain funding levels. Under the rules of the scheme, any future surplus would be returnable to the Group by refund at the end of the life of the scheme. The funding commitment is therefore not considered onerous, and in accordance with IFRIC 14 no additional liabilities or surplus restriction have been recognised in respect of this commitment. Payments made to pensioners by the operating companies in Germany, net of income on scheme assets, are deemed to be company contributions to the Contractual Trust Arrangements and are anticipated to be around £25 million in 2019 and ranging from £24 million per annum, decreasing to £21 million in 2023. Contributions to pension schemes in Canada, The Netherlands and Switzerland in total are anticipated to be around £25 million in 2019 and then around £10 million per annum for the four years after that. The majority of benefit payments are from trustee administered funds, however, there are also a number of unfunded schemes where the sponsoring company meets the benefit payment obligation as it falls due. For unfunded schemes in the USA, UK and Canada, 41% of the liabilities reported at year end are expected to be settled by the Group within 10 years, 29% between 10 and 20 years, 17% between 20 and 30 years, and 13% thereafter. The funded arrangements in the Group have policies on investment management, including strategies over a preferred long-term investment profile, and schemes in certain territories including Canada and The Netherlands manage their bond portfolios to match the weighted average duration of scheme liabilities. For funded schemes in the USA, the Group employs a risk mitigation strategy which seeks to balance pension plan returns with a reasonable level of funded status volatility. Based on this framework, the asset allocation has two primary components. The first component is the hedging portfolio, which uses extended duration fixed income holdings (typically US Government and investment grade corporate bonds) and to a lesser extent derivatives to match a portion of the interest rate risk associated with the benefit obligations, thereby reducing expected funded status volatility. The second component is the return seeking portfolio, which is designed to enhance portfolio returns. The return seeking portfolio is broadly diversified across asset classes. In addition, the main scheme in the UK had a target investment strategy such that, by 31 December 2018, the scheme would have moved to 20% return-seeking assets and 80% risk-reducing assets. This objective was achieved during the first quarter of 2018 and the Trustee has subsequently selected an investment strategy with a high-level target of broadly 10% return-seeking and 90% risk-reducing assets. Investments are diversified by type of investment, by investment sector, and where appropriate by country. Through its defined benefit pension schemes and healthcare schemes, the Group is exposed to a number of risks, including: Asset volatility: The plan liabilities are calculated using discount rates set by reference to bond yields. If plan assets underperform this yield, e.g. due to stock market volatility, this will create a deficit. However, most schemes hold a proportion of assets which are expected to outperform bonds in the long term, and the majority of schemes by value are subject to local regulation regarding funding deficits. Changes in bond yields: A Inflation risk: Some of the Group’s pension obligations are linked to inflation and higher inflation will lead to higher liabilities, although in most cases, caps on the level of inflationary increases are in place in the scheme rules, while some assets and derivatives provide specific inflation protection. Life expectancy: The majority of the schemes’ obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans’ liabilities. Assumptions regarding mortality and mortality improvements are regularly reviewed in line with actuarial tables and scheme specific experience. The amounts recognised in the balance sheet are determined as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Present value of funded scheme liabilities (11,031 ) (11,542 ) (286 ) (326 ) (11,317 ) (11,868 ) Fair value of funded scheme assets 11,747 12,157 178 193 11,925 12,350 716 615 (108 ) (133 ) 608 482 Unrecognised funded scheme surpluses (20 ) (23 ) – – (20 ) (23 ) 696 592 (108 ) (133 ) 588 459 Present value of unfunded scheme liabilities (531 ) (535 ) (575 ) (622 ) (1,106 ) (1,157 ) 165 57 (683 ) (755 ) (518 ) (698 ) The above net asset/(liability) is recognised in the balance sheet as follows: – retirement benefit scheme liabilities (982 ) (1,065 ) (683 ) (756 ) (1,665 ) (1,821 ) – retirement benefit scheme assets 1,147 1,122 – 1 1,147 1,123 165 57 (683 ) (755 ) (518 ) (698 ) The net liabilities of funded pension schemes by territory are as follows: Liabilities Assets Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m – USA (4,835 ) (5,022 ) 4,464 4,640 (371 ) (382 ) – UK (2,962 ) (3,133 ) 4,016 4,119 1,054 986 – Germany (949 ) (998 ) 948 945 (1 ) (53 ) – Canada (694 ) (782 ) 708 779 14 (3 ) – Netherlands (782 ) (769 ) 793 819 11 50 – Switzerland (326 ) (330 ) 283 285 (43 ) (45 ) – Rest of Group (483 ) (508 ) 535 570 52 62 Funded schemes (11,031 ) (11,542 ) 11,747 12,157 716 615 Of the Group’s unfunded pension schemes 48% The amounts recognised in the income statement are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Defined benefit schemes Service cost – current service cost 95 104 2 – 97 104 – past service cost/(credit), curtailments and settlements – 11 (1 ) – (1 ) 11 Net interest on the net defined benefit liability – interest on scheme liabilities 364 291 33 19 397 310 – interest on scheme assets (362 ) (276 ) (8 ) (4 ) (370 ) (280 ) – interest on unrecognised funded scheme surpluses 2 2 – – 2 2 99 132 26 15 125 147 Defined contribution schemes 87 68 – – 87 68 Total amount recognised in the income statement (note 3(a)) 186 200 26 15 212 215 The above charges are recognised within employee benefit costs in note 3(a) and include a charge of £3 million in 2018 (2017: £12 million charge) in respect of settlements, past service costs and defined contribution costs reported as part of the restructuring costs charged in arriving at profit from operations The movements in scheme liabilities are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Present value at 1 January 12,077 7,510 948 120 13,025 7,630 Differences on exchange 295 (199 ) 43 (35 ) 338 (234 ) Current service cost 95 105 2 2 97 107 Past service cost/(credit) – 4 – – – 4 Settlements (10 ) 7 (1 ) – (11 ) 7 Interest on scheme liabilities 364 292 33 19 397 311 Contributions by scheme members 2 3 – – 2 3 Benefits paid (694 ) (523 ) (62 ) (31 ) (756 ) (554 ) Acquisition of subsidiaries – 5,211 – 882 – 6,093 Actuarial (gains)/losses – arising from changes in demographic assumptions (12 ) (418 ) (4 ) (8 ) (16 ) (426 ) – arising from changes in financial assumptions (547 ) 92 (49 ) 9 (596 ) 101 Experience gains (8 ) (7 ) (49 ) (10 ) (57 ) (17 ) Present value at 31 December 11,562 12,077 861 948 12,423 13,025 Changes in financial assumptions principally relate to discount rate movements in both years. Scheme liabilities by scheme membership: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Active members 1,785 1,928 55 69 1,840 1,997 Deferred members 1,259 1,394 2 3 1,261 1,397 Retired members 8,518 8,755 804 876 9,322 9,631 Present value at 31 December 11,562 12,077 861 948 12,423 13,025 Approximately 95% of scheme liabilities in both years relate to guaranteed benefits. The movements in funded scheme assets are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Fair value of scheme assets at 1 January 12,157 7,264 193 14 12,350 7,278 Differences on exchange 262 (170 ) 8 (7 ) 270 (177 ) Settlements (10 ) (1 ) – – (10 ) (1 ) Interest on scheme assets 362 277 8 4 370 281 Company contributions 176 232 45 22 221 254 Contributions by scheme members – 4 – – – 4 Benefits paid (684 ) (509 ) (61 ) (25 ) (745 ) (534 ) Acquisition of subsidiaries – 4,574 – 180 – 4,754 Actuarial gains/(losses) (516 ) 486 (15 ) 5 (531 ) 491 Fair value of scheme assets at 31 December 11,747 12,157 178 193 11,925 12,350 Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Equities ‒ listed 1,133 2,444 5 6 1,138 2,450 Equities ‒ unlisted 930 1,337 59 71 989 1,408 Bonds ‒ listed 5,925 5,272 11 14 5,936 5,286 Bonds ‒ unlisted 1,672 1,346 84 84 1,756 1,430 Other assets ‒ listed 618 682 10 9 628 691 Other assets ‒ unlisted 1,469 1,076 9 9 1,478 1,085 Fair value of scheme assets at 31 December 11,747 12,157 178 193 11,925 12,350 Scheme assets have been diversified into equities, bonds and other assets and are typically invested via fund investment managers into both pooled and segregated mandates of listed and unlisted equities and bonds. In the USA, pension plan assets are invested using active investment strategies and multiple investment management firms. Managers within each asset class cover a range of investment styles and approaches. Allowable investment types include global equity, fixed income, real assets, private equity and absolute return. The range of allowable investment types utilised for pension assets provides enhanced returns and more widely diversifies the plan. In addition, certain scheme assets, including a portion of the assets held in the main UK pension scheme, are further diversified by investing in equities listed on non-UK stock exchanges via investment funds. The main UK scheme also makes use of liability driven investment funds and inflation opportunity funds as part of its investment portfolio. In the above analysis investments via equity-based investment funds are shown under listed equities, and investments via bond-based investment funds are shown under listed bonds. Other assets include cash and other deposits, derivatives and other hedges, recoverable taxes, reinsurance contracts, infrastructure investments and investment property. The actuarial gains and losses in both years principally relate to movements in the fair values of scheme assets and actual returns are stated net of applicable taxes and fund management fees. The fair values of listed scheme assets were derived from observable data including quoted market prices and other market data, including market values of individual segregated investments and of pooled investment funds where quoted. The fair values of unlisted assets were derived from cash flow projections of estimated future income after taking into account the estimated recoverable value of these assets. The movements in the unrecognised scheme surpluses, recognised in other comprehensive income, are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m Unrecognised funded scheme surpluses at 1 January (23 ) (18 ) (11 ) – – – (23 ) (18 ) (11 ) Differences on exchange 1 3 (4 ) – – – 1 3 (4 ) Interest on unrecognised funded scheme surpluses (2 ) (2 ) (2 ) – – – (2 ) (2 ) (2 ) Movement in year (note 19) 4 (6 ) (1 ) – – – 4 (6 ) (1 ) Unrecognised funded scheme surpluses at 31 December (20 ) (23 ) (18 ) – – – (20 ) (23 ) (18 ) The principal actuarial assumptions (weighted to reflect individual scheme differences) used in the following principal countries are shown below. In both years, discount rates are determined by reference to normal yields on high quality corporate bonds at the balance sheet date. For countries where there is not a deep market in such corporate bonds, the yield on government bonds is used. 2018 2017 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Rate of increase in salaries (%) 3.9 3.2 1.7 3.0 2.1 1.3 3.9 3.2 2.5 3.0 2.0 1.3 Rate of increase in pensions in payment (%) 2.5 3.2 1.1 Nil 1.1 Nil 2.5 3.2 1.8 Nil 1.2 Nil Rate of increase in deferred pensions (%) – 2.2 1.1 Nil 1.1 – – 2.2 1.8 Nil 1.2 – Discount rate (%) 4.3 2.9 1.3 3.8 1.8 0.9 3.7 2.5 1.9 3.3 2.0 0.6 General inflation (%) 2.5 3.2 1.1 2.0 2.0 1.1 2.5 3.2 1.8 2.0 2.0 1.0 2018 2017 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Weighted average duration of liabilities (years) 10.8 16.0 8.2 10.5 17.5 12.8 11.3 16.9 13.7 11.0 17.8 13.5 For healthcare inflation in the USA, the assumption is 6.5% (2017: 7.0%) and in Canada, the assumption is 5.0% (2017: 5.0%). Mortality assumptions are subject to regular review. The principal schemes used the following tables at year-end: USA RP-2018 mortality tables without collar or amounts adjusted projected with MP-2018 generational projection (2017: RP-2017 and MP-2017) UK S2PA (YOB) with the CMI (2017) improvement model with a 1.25% long term improvement rate (2017: CMI (2016)) Germany RT Heubeck 2018 G (2017: Heubeck 2005 G) Canada CPM-2014 Private Table (both years) Netherlands AG Prognosetafel 2018 (2017: AG Prognosetafel 2016) Switzerland LPP/BVG 2015 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate (both years) Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows: USA UK Germany Canada Netherlands Switzerland Male Female Male Female Male Female Male Female Male Female Male Female 31 December 2018 Member age 65 (current life expectancy) 20.7 22.7 22.6 24.1 17.0 20.6 21.5 23.9 20.8 24.5 21.8 23.8 Member age 45 (life expectancy at age 65) 22.3 24.2 24.2 25.4 19.8 22.8 22.5 24.8 23.1 26.5 23.6 25.6 31 December 2017 Member age 65 (current life expectancy) 20.7 22.7 22.7 24.2 19.3 23.3 21.4 23.8 20.8 24.8 21.7 23.7 Member age 45 (life expectancy at age 65) 22.3 24.2 24.3 25.5 21.9 25.8 22.5 24.8 23.3 27.0 23.5 25.5 For the remaining territories, typical assumptions are that real salary increases will be from 0.5% to 6.3% (2017: 0.5% to 4.0%) per annum and discount rates will be from 0.6% to 7.6% (2017: 0.5% to 10.0%) above inflation. Pension increases, where allowed for, are generally assumed to be in line with inflation. Assumptions of life expectancy are in line with best practice in each territory. The valuation of retirement benefit schemes involves judgements about uncertain future events. Sensitivities in respect of the key assumptions used to measure the principal pension schemes as at 31 December 2018 are set out below. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation, with the exception of the sensitivity to inflation which incorporates the impact of certain correlating assumptions such as salary increases. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation, while asset values also change, and the impacts may offset to some extent. 1 year increase £m 1 year decrease £m 0.25 percentage point increase £m 0.25 percentage point decrease £m Average life expectancy – increase/(decrease) of scheme liabilities 339 (340 ) Rate of inflation – increase/(decrease) of scheme liabilities 169 (159 ) Discount rate – (decrease)/increase of scheme liabilities (267 ) 286 A one percentage point increase in healthcare inflation would increase healthcare scheme liabilities by £42 million, and a one percentage point decrease would decrease liabilities by £36 million. The income statement effect of this change in assumption is not material. |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract] | |
Deferred tax | 13 Deferred tax Net deferred tax assets/(liabilities) comprise: Stock relief £m Excess of capital allowances over depreciation £m Tax losses £m Undistributed earnings of associates and subsidiaries £m Retirement benefits £m Trademarks £m Other temporary differences £m Total £m At 31 December 2017 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 656 (16,796 ) Accounting policy change (IFRS 9) (note 31) – – – – – – 7 7 At 1 January 2018 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 663 (16,789 ) Differences on exchange (7 ) (10 ) 4 6 15 (1,066 ) 47 (1,011 ) Subsidiaries acquired (note 24) – – – – – (3 ) 4 1 Credited/(charged) to the income statement 27 (16 ) (11 ) (46 ) (36 ) 67 319 304 Credited/(charged) relating to changes in tax rates 1 (10 ) (1 ) – 4 79 (3 ) 70 (Charged)/credited to other comprehensive income – – – – (25 ) – 18 (7 ) At 31 December 2018 (70 ) (210 ) 105 (281 ) 222 (18,246 ) 1,048 (17,432 ) Revised At 1 January 2017 31 (58 ) 89 (392 ) 117 (95 ) 92 (216 ) Differences on exchange 2 15 (6 ) 13 (12 ) 862 (22 ) 852 Subsidiaries acquired (note 24) (375 ) (234 ) – – 514 (28,091 ) 1,115 (27,071 ) Credited/(charged) to the income statement 180 19 30 138 10 66 (291 ) 152 Credited/(charged) relating to changes in tax rates 71 84 – – (194 ) 9,935 (276 ) 9,620 (Charged)/credited to other comprehensive income – – – – (171 ) – 38 (133 ) At 31 December 2017 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 656 (16,796 ) With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers In 2017, as part of the acquisition of RAI, the Group had to account for the assets and liabilities of the RAI companies at fair market value at the acquisition date of 25 July 2017 (note 24). The increase in the net asset value versus the tax bases created net deferred tax liabilities, valued within the purchase price allocation process at the prevailing Federal and State corporation tax rate at the date of the acquisition. Subsequently on 22 December 2017, the Federal corporation tax rate was changed to 21% from 1 January 2018. This revised rate has been used to revalue the net deferred tax liabilities in the United States, reducing the liability leading to a credit in the income statement of £9,620 million. The net deferred tax liabilities are reflected in the Group balance sheet as follows: deferred tax asset of £344 million and deferred tax liability of £17,776 million (2017: deferred tax asset of £333 million and deferred tax liability of £17,129 million), after offsetting assets and liabilities where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred income taxes relate to the same fiscal authority. At the balance sheet date, the Group has not recognised a deferred tax asset in respect of unused tax losses of £308 million (2017: £301 million) which have no expiry date and unused tax losses of £502 million (2017: £616 million) which will expire within the next 10 years. At the balance sheet date, the Group has not recognised a deferred tax asset in respect of deductible temporary differences of £nil million (2017: £nil million), which have no expiry date and £184 million (2017: £140 million), which will expire within the next 10 years. At the balance sheet date, the Group has unused tax credits of £80 million (2017: £80 million) which have no expiry date. No amount of deferred tax has been recognised in respect of these unused tax credits. At the balance sheet date, the aggregate amount of undistributed earnings of subsidiaries which would be subject to dividend withholding tax and for which no withholding tax liability has been recognised was £0.7 billion (2017: £0.7 billion). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Receivables [Abstract] | |
Trade and other receivables | 14 Trade and other receivables 2018 £m 2017 £m Trade receivables 2,868 3,306 Loans and other receivables 1,082 1,214 Prepayments and accrued income 323 289 4,273 4,809 Current 3,588 4,053 Non-current 685 756 4,273 4,809 In certain countries, the Group has entered into factoring arrangements and periodically sells certain trade receivables to banks and other financial institutions, without recourse, for cash. These trade receivables have been derecognised from the statement of financial position, because the Group has transferred substantially all of the risks and rewards of the receivables, including credit risk. The cash inflows have been recognised within operating cash flows. Typically in these arrangements, the Group also acts as a collection agent for the bank. At 31 December, the value of trade receivables derecognised through the factoring arrangements where the Group acts as a collection agent was £428 million and where the Group does not act as a collection agent was £40 million (2017: £139 million, £nil million respectively). Included in trade receivables above is £270 million (2017: £54 million) of trade debtor balances which were available for factoring under these arrangements. Included in loans and other receivables are £553 million of litigation related deposits (2017: £603 million). The Group has determined that these payments are recoverable on conclusion of ongoing appeals and the deposits have not been discounted. Litigation related deposits include £436 million (2017: £449 million) in respect of payments made by a Group subsidiary in relation to the Quebec Class Action, as detailed in note 28. While there is uncertainty over the timeframe of the appeal process, it is estimated that had discounting been applied the carrying value of the asset would have been reduced by approximately £24 million (2017: £21 million). Amounts receivable from related parties including associated undertakings are shown in note 27. Trade and other receivables have been reported in the balance sheet net of allowances as follows: 2018 £m 2017 £m Trade receivables - gross 2,898 3,345 Trade receivables - allowance (30 ) (39 ) Loans and other receivables - gross 1,092 1,260 Loans and other receivables - allowance (10 ) (46 ) Prepayments and accrued income 323 289 Net trade and other receivables per balance sheet 4,273 4,809 The movements in the allowance account are as follows: Trade receivables Loans and other receivables Total Trade receivables Loans and other receivables Total 2018 £m 2018 £m 2018 £m 2017 £m 2017 £m 2017 £m 1 January 39 46 85 87 - 87 Accounting policy change (IFRS 9) (notes 1 and 31) 37 8 45 - - - Revised 1 January 76 54 130 87 - 87 Differences on exchange 2 - 2 4 - 4 Provided in the year 16 10 26 - 46 46 Released (64 ) (54 ) (118 ) (52 ) - (52 ) 31 December 30 10 40 39 46 85 As permitted by IFRS 9, the loss allowance on trade receivables arising from the recognition of revenue under IFRS 15 is initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal to 12-month expected credit losses. Allowances are measured at an amount equal to the lifetime expected credit losses where the credit risk on the receivables increases significantly after initial recognition. Prior to the adoption of IFRS 9 on 1 January 2018, loans and receivables were stated net of allowances for estimated irrecoverable amounts due to the identification of a loss event (the incurred loss method). The Group holds bank guarantees, other guarantees and credit insurance in respect of some of the past due debtor balances. Trade and other receivables are predominantly denominated in the functional currencies of subsidiary undertakings apart from the following: US dollar: 3.5% (2017: 1.4%), UK sterling: 4.2% (2017: 4.3%), Euro: 1.6% (2017: 1.5%) and other currencies: 6.6% (2017: 9.6%). There is no material difference between the above amounts for trade and other receivables and their fair value due to the short-term duration of the majority of trade and other receivables as determined using discounted cash flow analysis. There is no concentration of credit risk with respect to trade receivables as the Group has a large number of internationally dispersed customers. |
Investments held at fair value
Investments held at fair value | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Investments Held At Fair Value [Abstract] | |
Investments Held at Fair Value | 15 Investments held at fair value Investments Fair value through P&L Fair value through OCI Available-for-sale Total Available-for-sale investments 2018 £m 2017 £m 31 December 107 107 58 Accounting policy change (IFRS 9) (note 31) 237 16 (107 ) 146 - 1 January 237 16 - 253 58 Differences on exchange (53 ) - - (53 ) - Additions 278 4 - 282 90 Revaluations 36 - - 36 (27 ) Disposals (285 ) (16 ) - (301 ) (14 ) 31 December 213 4 - 217 107 Current 178 - - 178 65 Non-current 35 4 - 39 42 213 4 - 217 107 2018 £m 2017 £m Functional currency 212 107 US dollar - - Euro - - Other currency 5 - 217 107 The classification of these investments under the IFRS 13 fair value hierarchy is given in note 23. There is no material difference between the maturity profile of investments in the table above and the maturity profile on a gross contractual basis where the values in each year include the investments maturing in that year together with forecast interest receipts on all investments which are due for all or part of that year. Investments are all denominated in the functional currency of the subsidiary undertaking holding the investments. Investments held at fair value through OCI relate to the Group’s strategic investments in China Materialia Fund II. The Group’s investment in Landewyck Holdings s.a.r.l. was disposed of during the year. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Financial Assets And Liabilities [Abstract] | |
Derivative financial instruments | 16 Derivative financial instruments The fair values of derivatives are determined based on market data (primarily yield curves, implied volatilities and exchange rates) to calculate the present value of all estimated flows associated with each derivative at the balance sheet date. In the absence of sufficient market data, fair values would be based on the quoted market price of similar derivatives. The classification of these derivative assets and liabilities under the IFRS 13 fair value hierarchy is given in note 23. 2018 2017 Assets £m Liabilities £m Assets £m Liabilities £m Fair value hedges – interest rate swaps 181 83 97 14 – cross-currency swaps 282 - 263 – Cash flow hedges – interest rate swaps - 98 1 – – cross-currency swaps 149 56 187 – – forward foreign currency contracts 61 42 82 73 Net investment hedges – forward foreign currency contracts 10 174 85 39 Held-for-trading* – interest rate swaps 6 - 68 77 – forward foreign currency contracts 46 63 35 31 Total 735 516 818 234 Current 179 302 228 155 Non-current 556 214 590 79 735 516 818 234 Derivatives – in respect of net debt 647 269 640 117 – other 88 247 178 117 735 516 818 234 * Derivatives which do not meet the tests for hedge accounting under IFRS 9 (previously under IAS 39) or which are not designated as hedging instruments are referred to as “held-for-trading”. These derivatives principally consist of forward foreign currency contracts which have not been designated as hedges due to their value changes offsetting with other components of net finance costs relating to financial assets and financial liabilities. The Group do not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes. For cash flow hedges, the timing of expected cash flows is as follows: assets of £210 million (2017: £270 million) of which £59 million (2017: £73 million) is expected within one year and £149 million (2017: £165 million) beyond five years and liabilities of £196 million (2017: £73 million) of which £39 million (2017: £69 million) is expected within one year and £113 million (2017: £ nil) beyond five years. The Group’s cash flow hedges are principally in respect of sales or purchases of inventory and certain debt instruments. A certain number of forward foreign currency contracts were used to manage the currency profile of external borrowings and are reflected in the currency table in note 20. Interest rate swaps have been used to manage the interest rate profile of external borrowings and are reflected in the re-pricing table in note 20. The tables below set out the maturities of the Group’s derivative financial instruments on an undiscounted contractual basis, based on spot rates. The maturity dates of all gross-settled derivative financial instruments are as follows: 2018 2017 Assets Liabilities Assets Liabilities Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Within one year – forward foreign currency contracts 7,081 (6,526 ) 9,876 (9,749 ) 8,874 (8,702 ) 5,929 (6,059 ) – cross-currency swaps 55 (54 ) 33 (92 ) 56 (97 ) - - Between one and two years – forward foreign currency contracts 332 (330 ) 449 (441 ) 339 (328 ) 229 (230 ) – cross-currency swaps 36 (43 ) 20 (73 ) 89 (135 ) – – Between two and three years – cross-currency swaps 830 (771 ) 1,008 (1,075 ) 60 (108 ) – – Between three and four years – cross-currency swaps 15 (26 ) 17 (38 ) 1,812 (1,782 ) – – Between four and five years – cross-currency swaps 733 (592 ) 690 (730 ) 32 (62 ) – – Beyond five years – cross-currency swaps 754 (625 ) 469 (490 ) 2,623 (2,366 ) – – 9,836 (8,967 ) 12,562 (12,688 ) 13,885 (13,580 ) 6,158 (6,289 ) The maturity dates of net-settled derivative financial instruments, which primarily relate to interest rate swaps, are as follows: 2018 2017 Assets Inflow £m Liabilities Outflow £m Assets Inflow £m Liabilities Outflow £m Within one year 53 40 44 18 Between one and two years 48 19 34 5 Between two and three years 45 15 28 6 Between three and four years 26 13 26 6 Between four and five years 23 15 12 7 Beyond five years 15 23 28 51 210 125 172 93 The items designated as hedging instruments are as follows: 2018 Nominal amount Changes in fair of hedging value used for instrument calculating hedge ineffectiveness for 2018 £m £m Interest rate risk exposure: Fair value hedges – interest rate swaps 4,470 11 – cross-currency swaps 1,561 19 Cash flow hedges – interest rate swaps 2,715 (98 ) – cross-currency swaps 2,856 (91 ) Foreign currency risk exposure: Cash flow hedges – forward foreign currency contracts 3,574 (4 ) Net investment hedges (derivative related) – forward foreign currency contracts 5,291 (166 ) Net investment hedges (non-derivative related) – debt (carrying value) in borrowings designated as net investment hedges of net assets 4,647 (226 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Classes Of Inventories [Abstract] | |
Inventories | 17 Inventories 2018 £m 2017 £m Raw materials and consumables 3,049 3,027 Finished goods and work in progress 2,877 2,692 Goods purchased for resale 103 145 6,029 5,864 Inventories pledged as security for liabilities amount to £7 million (2017: £7 million). Write-offs taken to other operating expenses in the Group income statement comprise £148 million (2017: £114 million; 2016: £127 million), including amounts relating to restructuring costs. 2018 £m 2017 £m Raw materials and consumables 3,049 3,027 Finished goods and work in progress 2,877 2,692 Goods purchased for resale 103 145 6,029 5,864 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 18 Cash and cash equivalents 2018 £m 2017 £m Cash and bank balances 2,069 1,967 Cash equivalents 533 1,324 2,602 3,291 The carrying value of cash and cash equivalents approximates their fair value. Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: 2018 £m 2017 £m Functional currency 2,144 2,842 US dollar 158 161 Euro 174 159 Other currency 126 129 2,602 3,291 In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows: 2018 £m 2017 £m Cash and cash equivalents as above 2,602 3,291 Less overdrafts and accrued interest (274 ) (469 ) Net cash and cash equivalents 2,328 2,822 Cash and cash equivalents include restricted amounts of £170 million (2017: £160 million), principally due to exchange control regulations in certain countries. Cash and cash equivalents also include £125 million (2017: £12 million) of cash that is held as a hedging instrument. 2018 £m 2017 £m Cash and bank balances 2,069 1,967 Cash equivalents 533 1,324 2,602 3,291 |
Capital and reserves - reconcil
Capital and reserves - reconciliation of movement in total equity | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Abstract] | |
Capital and reserves - reconciliation of movement in total equity | 19 Capital and reserves – reconciliation of movement in total equity Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 31 December 2017 614 26,602 (3,392 ) 36,935 60,759 222 60,981 Accounting policy change (IFRS 9) (note 31) – – (9 ) (29 ) (38 ) – (38 ) Revised 1 January 2018 614 26,602 (3,401 ) 36,906 60,721 222 60,943 Comprehensive income and expense Profit for the year – – – 6,032 6,032 178 6,210 Differences on exchange – – 3,861 – 3,861 7 3,868 Cash flow hedges – net fair value losses – – (58 ) – (58 ) – (58 ) – reclassified and reported in profit for the year – – 17 – 17 – 17 Investments held at fair value – reclassified and reported in retained earnings – – (8 ) 8 – – – Net investment hedges – net fair value losses – – (472 ) – (472 ) – (472 ) – differences on exchange on borrowings – – (236 ) – (236 ) – (236 ) Associates – – – (38 ) – (38 ) – (38 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 18 – 18 – 18 Retirement benefit schemes – net actuarial gains (note 12) – – – 138 138 – 138 – surplus recognition and minimum funding obligations – – – 4 4 – 4 (note 12) Associates – – – 6 – 6 – 6 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (33 ) (33 ) – (33 ) Cash flow hedges reclassified and reported in total assets – – (22 ) – (22 ) – (22 ) Other changes in equity Employee share options – value of employee services – – – 121 121 – 121 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares (note 8) – – – (4,463 ) (4,463 ) – (4,463 ) – to non-controlling interests – – – – – (163 ) (163 ) Purchase of own shares – held in employee share ownership trusts – – – (139 ) (139 ) – (139 ) Non-controlling interests – acquisitions (note 24(c)) – – – (11 ) (11 ) – (11 ) Other movements – – – (6 ) (6 ) – (6 ) 31 December 2018 614 26,606 (333 ) 38,557 65,444 244 65,688 Attributable to owners of the parent Revised Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2017 507 3,931 413 3,331 8,182 224 8,406 Comprehensive income and expense Profit for the year – – – 37,485 37,485 171 37,656 Differences on exchange – – (3,082 ) – (3,082 ) (2 ) (3,084 ) Cash flow hedges – net fair value losses – – (263 ) – (263 ) (1 ) (264 ) – reclassified and reported in profit for the year – – 109 – 109 – 109 – reclassified and reported in total assets – – (16 ) – (16 ) – (16 ) Investments held at fair value – net fair value losses – – (27 ) – (27 ) – (27 ) Net investment hedges – net fair value gains – – 425 – 425 – 425 – differences on exchange on borrowings – – (67 ) – (67 ) (1 ) (68 ) Associates – – – (918 ) – (918 ) – (918 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 34 – 34 – 34 Retirement benefit schemes – – – net actuarial gains (note 12) – – – 832 832 1 833 – surplus recognition and minimum funding obligations – – – (5 ) (5 ) (1 ) (6 ) (note 12) Associates – – – – 25 25 – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (171 ) (171 ) – (171 ) Other changes in equity Employee share options – value of employee services – – – 105 105 – 105 – proceeds from shares issued – 5 – – 5 – 5 Dividends and other appropriations – ordinary shares – – – (4,465 ) (4,465 ) – (4,465 ) – to non-controlling interests – – – – – (169 ) (169 ) Purchase of own shares – held in employee share ownership trusts – – – (205 ) (205 ) – (205 ) Shares issued – RAI acquisition (note 24(a)) 107 22,666 – – 22,773 – 22,773 Other movements – – – 3 3 – 3 31 December 2017 614 26,602 (3,392 ) 36,935 60,759 222 60,981 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers Differences on exchange in respect of associates of £923 million, net fair value gains in respect of associates of £5 million and actuarial gains in respect of associates of £25 million have been reclassified to associates – share of OCI, net of tax. Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2016 507 3,927 (1,294 ) 1,754 4,894 138 5,032 Comprehensive income and expense Profit for the year – – – 4,648 4,648 191 4,839 Differences on exchange – – 1,218 – 1,218 52 1,270 Cash flow hedges – net fair value gains – – 28 – 28 1 29 – reclassified and reported in profit for the year – – 38 – 38 – 38 – reclassified and reported in total assets – – (12 ) – (12 ) – (12 ) Net investment hedges – net fair value losses – – (837 ) – (837 ) – (837 ) – differences on exchange on borrowings – – (124 ) – (124 ) – (124 ) Associates – – – 1,415 – 1,415 – 1,415 Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – (19 ) – (19 ) – (19 ) Retirement benefit schemes – net actuarial losses – – – (231 ) (231 ) 3 (228 ) – surplus recognition and minimum funding obligations – – – – – (1 ) (1 ) (note 12) Associates – – – - 20 20 – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – 36 36 – 36 Other changes in equity Employee share options – value of employee services – – – 71 71 – 71 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares – – – (2,910 ) (2,910 ) – (2,910 ) – to non-controlling interests – – – — — (156 ) (156 ) Purchase of own shares – held in employee share ownership trusts – – – (64 ) (64 ) – (64 ) Non-controlling interests – acquisitions (note 24(c)) – – – 4 4 (4 ) – Other movements – – – 3 3 – 3 31 December 2016 507 3,931 413 3,331 8,182 224 8,406 Differences on exchange in respect of associates of £1,425 million, net fair value losses in respect of associates of £10 million and actuarial gains in respect of associates of £20 million have been reclassified to associates – share of OCI, net of tax. (a) Share premium account, capital redemption reserves and merger reserves comprise: Share premium account £m Capital redemption reserves £m Merger reserves £m Total £m 31 December 2018 91 101 26,414 26,606 31 December 2017 87 101 26,414 26,602 31 December 2016 82 101 3,748 3,931 The share premium account includes the difference between the value of shares issued and their nominal value. The increase of £4 million (2017: £5 million; 2016: £4 million) relates solely to ordinary shares issued under the Company’s share option schemes. On the purchase of own shares as part of the share buy-back programme for shares which are cancelled, a transfer is made from retained earnings to the capital redemption reserve equivalent to the nominal value of shares purchased. Purchased shares which are not cancelled are classified as treasury shares and presented as a deduction from total equity. In 1999, shares were issued for the acquisition of the Rothmans International B.V. Group, and the difference between the fair value of shares issued and their nominal value of £3,748 million was credited to merger reserves. On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of RAI not already owned by the Group. Shares were issued for the acquisition and the difference between the fair value of shares issued and their nominal value of £22,666 million was credited to merger reserves. Total equity attributable to owners of the parent is stated after deducting the cost of treasury shares which include £4,845 million (2017: £4,845 million; 2016: £4,845 million) for shares repurchased and not cancelled and £397 million (2017: £350 million; 2016 £208 million) in respect of the cost of own shares held in employee share ownership trusts. The share buy-back programme was suspended from 30 July 2014. As at 31 December 2018, treasury shares include 7,536,408 Other movements in shareholders’ funds principally relate to the release of treasury shares as a result of the exercise of share options. Called-up share capital Ordinary shares of 25p each Number of shares £m Allotted and fully paid 1 January 2018 2,456,278,414 614.06 Changes during the year – share option schemes 137,470 0.03 31 December 2018 2,456,415,884 614.09 Allotted and fully paid 1 January 2017 2,027,019,508 506.75 Changes during the year – share option schemes 213,144 0.05 – Issue of shares RAI acquisition 429,045,762 107.26 31 December 2017 2,456,278,414 614.06 Allotted and fully paid 1 January 2016 2,026,866,724 506.71 Changes during the year – share option schemes 152,784 0.04 31 December 2016 2,027,019,508 506.75 (b) Information on the principal components of non-controlling interests is provided in note 29. Movements in other reserves and retained earnings (which are after deducting treasury shares) shown above comprise: Retained earnings Translation reserve £m Hedging reserve £m Fair value reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 31 December 2017 (4,029 ) (132 ) 17 179 573 (3,392 ) (5,195 ) 42,130 Accounting policy change (IFRS 9) (note 31) – – (9 ) – – (9 ) – (29 ) 1 January 2018 (4,029 ) (132 ) 8 179 573 (3,401 ) (5,195 ) 42,101 Comprehensive income and expense Profit for the year – – – – – – – 6,032 Differences on exchange 3,861 – – – – 3,861 – – Cash flow hedges – net fair value losses – (58 ) – – – (58 ) – – – reclassified and reported in profit for the year – 17 – – – 17 – – Investments held at fair value – reclassified and reported in retained earnings – – (8 ) – – (8 ) – 8 Net investment hedges – net fair value losses (472 ) – – – – (472 ) – – – differences on exchange on borrowings (236 ) – – – – (236 ) – – Associates – (38 ) – – – – (38 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – 18 – – – 18 – – Retirement benefit schemes – net actuarial gains (note 12) – – – – – – – 138 – surplus recognition and minimum funding obligations (note 12) – – – – – – – 4 Associates – – – 6 – – 6 – – Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – (33 ) Cash flow hedges reclassified and reported in total assets – (22 ) – – – (22 ) – – Other changes in equity Employee share options – value of employee services – – – – – – – 121 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (4,463 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (139 ) – Non-controlling interests – acquisitions (note 24(c)) – – – – – – – (11 ) Other movements – – – – – – 92 (98 ) 31 December 2018 (914 ) (177 ) 6 179 573 (333 ) (5,242 ) 43,799 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers In 2018, within the translation reserve differences on exchange, a gain of £107 million has been recognised in relation to the application of hyperinflationary accounting in Venezuela as explained in note 3 (h). Retained earnings Revised Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2017 (382 ) 4 39 179 573 413 (5,053 ) 8,384 Comprehensive income and expense Profit for the year – – – – – – – 37,485 Differences on exchange (3,082 ) – – – – (3,082 ) – – Cash flow hedges – net fair value losses – (263 ) – – – (263 ) – – – reclassified and reported in profit for the year – 109 – – – 109 – – – reclassified and reported in total assets – (16 ) – – – (16 ) – – Investments held at fair value – net fair value losses – – (27 ) – – (27 ) – – Net investment hedges – net fair value gains 425 – – – – 425 – – – differences on exchange on borrowings (67 ) – – – – (67 ) – – Associates – (923 ) – 5 – – (918 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – 34 – – – 34 – – Retirement benefit schemes – net actuarial gains (note 12) – – – – – – – 832 – surplus recognition and minimum funding obligations (note 12) – – – – – – – (5 ) Associates – – – – – – – – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – (171 ) Other changes in equity Employee share options – value of employee services – – – – – – – 105 Dividends and other appropriations – ordinary shares – – – – – – – (4,465 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (205 ) 0 Other movements – – – – – – 63 (60 ) 31 December 2017 (4,029 ) (132 ) 17 179 573 (3,392 ) (5,195 ) 42,130 Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2016 (2,062 ) (33 ) 49 179 573 (1,294 ) (5,049 ) 6,803 Comprehensive income and expense Profit for the year – – – – – – – 4,648 Differences on exchange 1,218 – – – – 1,218 – – Cash flow hedges – net fair value gains – 28 – – – 28 – – – reclassified and reported in profit for the year – 38 – – – 38 – – – reclassified and reported in total assets – (12 ) – – – (12 ) – – Net investment hedges – net fair value losses (837 ) – – – – (837 ) – – – differences on exchange on borrowings (124 ) – – – – (124 ) – – Associates – 1,425 – (10 ) – – 1,415 – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) (2 ) (17 ) – – – (19 ) – – Retirement benefit schemes – net actuarial losses – – – – – – – (231 ) Associates – – – – – – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – 36 Other changes in equity Employee share options – value of employee services – – – – – – – 71 Dividends and other appropriations – ordinary shares – – – – – – – (2,910 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (64 ) – Non-controlling interests – acquisitions (note 24(c)) – – – – – – – 4 Other movements – – – – – – 60 (57 ) 31 December 2016 (382 ) 4 39 179 573 413 (5,053 ) 8,384 The translation reserve (applicable to 2017 and 2016) and the fair value reserve is explained in the accounting policy on foreign currencies in note 1. The hedging reserve and the available-for-sale reserve are explained in the accounting policy on financial instruments in note 1. The revaluation reserve relates to the acquisition of the cigarette and snus business of ST in 2008. Of the amounts released from the hedging reserve during the year, a gain of £15 million (2017: £52 million gain; 2016: £142 million loss) and a gain of £23 million (2017: £27 million loss; 2016: £2 million loss) were reported within revenue and raw materials and consumables respectively, together with a loss of £7 In 2017, included within the £923 million of differences on exchange in respect of associates is a debit of £545 million in respect of foreign exchange recycled from reserves as a result of the divestment of the RAI associate. This has been reported in the Group’s share of post-tax results of associates and joint ventures . Other reserves comprise: (a) £483 million which arose in 1998 from merger accounting in a Scheme of Arrangement and Reconstruction whereby British American Tobacco p.l.c. acquired the entire share capital of B.A.T Industries p.l.c. and the share capital of that company’s principal financial services subsidiaries was distributed, so effectively demerging them; and (b) In the Rothmans transaction, convertible redeemable preference shares were issued as part of the consideration. The discount on these shares was amortised by crediting other reserves and charging retained earnings. The £90 million balance in other reserves comprises the accumulated balance in respect of the preference shares converted during 2004. The tax attributable to components of other comprehensive income is as follows: 2018 £m 2017 £m 2016 £m Translation reserve Net investment hedges – net fair value losses – – (2 ) – – (2 ) Hedging reserve Cash flow hedges – net fair value losses/(gains) 18 34 (11 ) – reclassified and reported in profit for the year – – (6 ) 18 34 (17 ) Retained earnings – actuarial (gains)/losses in respect of subsidiaries (33 ) (171 ) 36 (33 ) (171 ) 36 Owners of the parent (15 ) (137 ) 17 Non-controlling interests – – – Total tax recognised in other comprehensive income for the year (note 6(f)) (15 ) (137 ) 17 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Detailed Information About Borrowings [Abstract] | |
Borrowings | 20 Borrowings Currency Maturity dates Interest rates 2018 £m 2017 £m Eurobonds Euro 2019 to 2045 0.4% to 4.9% 8,717 8,585 Euro 2021 3m EURIBOR +50bps 986 1,326 UK sterling 2019 to 2055 1.8% to 7.3% 4,671 4,680 US dollar 2019 1.6% 512 482 Swiss franc 2021 to 2026 0.6% to 1.4% 523 498 Bonds issued pursuant to Rules under the US Securities Act (as amended) US dollar 2019 to 2047 2.3% to 8.1% 25,428 25,545 US dollar 2020 to 2022 USD 3m LIBOR + 59bps to 88bps 1,381 1,665 Bonds and notes 42,218 42,781 Commercial paper 536 1,200 Other loans 3,859 4,466 Bank loans 608 512 Bank overdrafts 274 469 Finance leases 14 22 47,509 49,450 The interest on the commercial paper referred to in the table above is based on USD LIBOR plus a margin ranging between 22 and 65 basis points and EURIBOR plus a margin ranging between 8 and 15 basis points (2017: USD LIBOR plus a margin ranging between 19 and 38 basis points and EURIBOR plus a margin ranging between 10 and 24 basis points). Current borrowings per the balance sheet include interest payable of £470 million at 31 December 2018 (2017: £445 million). Included within borrowings are £6,245 million (2017: £6,690 million) of borrowings subject to fair value hedges where their amortised cost has been increased by £179 million (2017: £208 million) in the table above. The fair value of borrowings is estimated to be £44,457 million (2017: £50,449 million). £39,169 million (2017: £43,780 million) has been calculated using quoted market prices and is within level 1 of the fair value hierarchy. £5,288 million (2017: £6,669 million) has been calculated based on discounted cash flow analysis and is within level 3 of the fair value hierarchy. The amounts secured on Group assets as at 31 December 2018 is £75 million (2017: £159 million), including finance leases of £14 million (2017: £20 million) and amounts secured on certain inventory of the Group (note 17). Borrowings are repayable as follows: Per balance sheet Contractual gross maturities 2018 £m 2017 £m 2018 £m 2017 £m Within one year 4,225 5,423 5,636 6,381 Between one and two years 7,261 2,344 8,471 3,609 Between two and three years 2,958 7,011 4,086 8,141 Between three and four years 7,095 2,913 8,131 4,034 Between four and five years 2,580 6,857 3,462 7,836 Beyond five years 23,390 24,902 32,712 34,842 47,509 49,450 62,498 64,843 The contractual gross maturities in each year include the borrowings maturing in that year together with forecast interest payments on all borrowings which are outstanding for all or part of that year. Borrowings are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: Functional currency £m US dollar £m UK sterling £m Euro £m Canadian dollar £m Other currencies £m Total £m 31 December 2018 Total borrowings 32,612 3,803 450 10,089 – 555 47,509 Effect of derivative financial instruments – cross-currency swaps 4,029 17 (450 ) (3,653 ) – (256 ) (313 ) – forward foreign currency contracts (1,905 ) 1,961 – (389 ) – 321 (12 ) 34,736 5,781 – 6,047 – 620 47,184 31 December 2017 Total borrowings 32,580 4,789 450 10,837 – 794 49,450 Effect of derivative financial instruments – cross-currency swaps 3,903 16 (450 ) (3,613 ) – (243 ) (387 ) – forward foreign currency contracts (1,142 ) 922 – (388 ) 215 388 (5 ) 35,341 5,727 – 6,836 215 939 49,058 The exposure to interest rate changes when borrowings are re-priced is as follows: Within 1 year £m Between 1-2 years £m Between 2-3 years £m Between 3-4 years £m Between 4-5 years £m Beyond 5 years £m Total £m 31 December 2018 Total borrowings 10,384 4,540 1,967 4,577 2,585 23,456 47,509 Effect of derivative financial instruments – interest rate swaps 3,069 (589 ) (539 ) (236 ) – (1,705 ) – – cross-currency swaps 1,318 – (793 ) – (700 ) (138 ) (313 ) 14,771 3,951 635 4,341 1,885 21,613 47,196 31 December 2017 Total borrowings 12,516 2,325 4,321 1,941 4,332 24,015 49,450 Effect of derivative financial instruments – interest rate swaps 2,995 — (554 ) (533 ) (222 ) (1,686 ) – – cross-currency swaps 1,287 (17 ) – (775 ) – (882 ) (387 ) 16,798 2,308 3,767 633 4,110 21,447 49,063 Finance lease liabilities per the balance sheet and on a contractual gross maturity basis are payable as follows: £7 million (2017: £10 million) repayable within one year and £7 million (2017: £12 million) repayable between one and five years. The Group’s undrawn committed borrowing facilities (note 23) total £6,000 million (2017: £5,400 million) with £3,000 million (2017: £2,400 million) maturing within one year and with £3,000 million expiring between two and three years (2017: £3,000 million expiring between three and four years). The Group defines net debt as follows: 2018 £m 2017 £m Borrowings* 47,509 49,450 Derivatives in respect of net debt: – assets (note 16) (647 ) (640 ) – liabilities (note 16) 269 117 Cash and cash equivalents (note 18) (2,602 ) (3,291 ) Current investments held at fair value (note 15) (178 ) (65 ) 44,351 45,571 * Borrowings as at 31 December 2018 include £944 million (2017: £947 million) in respect of the purchase price adjustments relating to the acquisition of Reynolds. The movements in net debt are presented below: 2018 £m Opening balance Accounting policy change (IFRS 9) (note 31) Revised opening balance Subsidiaries acquired Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 49,450 – 49,450 – (3,671 ) 1,730 47,509 Derivatives in respect of net debt: – assets (note 16) (640 ) – (640 ) – 109 (116 ) (647 ) – liabilities (note 16) 117 – 117 – (6 ) 158 269 Cash and cash equivalents (note 18) (3,291 ) – (3,291 ) (1 ) 563 127 (2,602 ) Current investments held at fair value (note 15) (65 ) (144 ) (209 ) – 9 22 (178 ) 45,571 (144 ) 45,427 (1 ) (2,996 ) 1,921 44,351 2017 £m Opening balance Subsidiaries acquired Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 19,495 11,203 20,024 (1,272 ) 49,450 Derivatives in respect of net debt: – assets (note 16) (809 ) - 106 63 (640 ) – liabilities (note 16) 300 - (380 ) 197 117 Cash and cash equivalents (note 18) (2,204 ) (1,288 ) 57 144 (3,291 ) Current investments held at fair value (note 15) (15 ) - (44 ) (6 ) (65 ) 16,767 9,915 19,763 (874 ) 45,571 |
Provisions for liabilities
Provisions for liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Other Provisions [Abstract] | |
Provisions for liabilities | 21 Provisions for liabilities Restructuring of existing businesses £m Employee-related benefits £m Fox River £m Other provisions £m Total £m 1 January 2018 158 40 138 417 753 Differences on exchange - (3 ) - (15 ) (18 ) Provided in respect of the year 41 10 - 50 101 Utilised during the year (72 ) (14 ) (30 ) (71 ) (187 ) 31 December 2018 127 33 108 381 649 Analysed on the balance sheet as – current 74 17 19 208 318 – non-current 53 16 89 173 331 127 33 108 381 649 Restructuring of existing businesses £m Employee- related benefits £m Fox River £m Other provisions £m Total £m 1 January 2017 190 40 163 400 793 Differences on exchange 4 (3 ) – (22 ) (21 ) Subsidiaries acquired - - – 42 42 Provided in respect of the year 172 15 - 95 282 Utilised during the year (208 ) (12 ) (25 ) (98 ) (343 ) 31 December 2017 158 40 138 417 753 Analysed on the balance sheet as – current 87 24 22 266 399 – non-current 71 16 116 151 354 158 40 138 417 753 The restructuring provisions relate to the restructuring and integration costs incurred and reported as adjusting items in the income statement. The principal restructuring activities in 2018 and 2017 are as described in note 3(e). While some elements of the non-current provisions of £53 million will unwind over several years, as termination payments are made over extended periods in some countries, it is estimated that approximately 30% will unwind within five years. Employee-related benefits mainly relate to employee benefits other than post-employment benefits. The principal components of these provisions are gratuity and termination awards, and ‘jubilee’ payments due after a certain service period. It is estimated that approximately 30% of the non-current provisions of £16 million will unwind within five years. A provision of £274 million was made in 2011 for a potential claim under a 1998 settlement agreement entered into by a Group subsidiary in respect of the clean-up of sediment in the Fox River. On 30 September 2014, the Group, NCR, Appvion and Windward Prospects entered into a funding agreement; the details of this agreement are explained in note 28. This agreement led to payments of £25 million in 2018 (2017: £18 million). In addition, the Group incurred legal costs of £5 million (2017: £7 million), which were also charged against the provision. It is expected that the non-current provision will unwind within five years. On 10 February 2017, a decision was delivered on the further hearing related to a payment of dividends by Windward to Sequana in May 2009. Further details are provided in note 28. Other provisions comprise balances set up in the ordinary course of general business that cannot be classified within the other categories, such as sales returns and onerous contracts, together with amounts in respect of supplier, excise and other disputes. The nature of the amounts provided in respect of disputes is such that the extent and timing of cash flows are difficult to estimate and the ultimate liability may vary from the amounts provided. Amounts provided above are shown net of reversals of unused provisions which include reversals of £12 million (2017: £7 million) for restructuring of existing businesses, £4 million (2017: £5 million) for employee benefits and £111 million (2017: £49 million) for other provisions, of which £56 million was reclassified to trade and other payables. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Current Payables [Abstract] | |
Trade and other payables | 22 Trade and other payables 2018 £m 2017 £m Revised Trade payables 3,557 2,298 Duty, excise and other taxes 3,519 3,577 Accrued charges and deferred income 2,038 1,807 FII GLO deferred income (note 6(b)) 963 963 Social security and other taxation 55 50 Sundry payables 1,554 1,271 11,686 9,966 Current 10,631 8,908 Non-current 1,055 1,058 11,686 9,966 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers As explained in note 14, the Group acts as a collection agent for banks in certain debt factoring arrangements. The cash collected in respect of these arrangements that has not yet been remitted amounts to £118 million (2017: £108 million) and is included in trade and other payables. The Group has Supply Chain Financing (SCF) arrangements in place. The principal purpose of these arrangements is to provide the supplier with the option to access liquidity earlier through the sale of its receivables due from the Group to a third party bank prior to their due date. The invoice due date, from the Group’s perspective, remains unaltered. At 31 December 2018, the value of invoices sold under the SCF programmes was £45 million (2017: £45 million). Accrued charges and deferred income include £5 million of deferred income (2017: £8 million) and £51 million (2017: £16 million) in respect of interest payable mainly related to tax matters. FII GLO deferred income of £963 million relates to receipts in 2015, in respect of the Franked Investment Income Government Litigation Order (note 6(b)). Amounts payable to related parties including associated undertakings are shown in note 27. There is no material difference between the above amounts for trade and other payables and their fair value due to the short-term duration of the majority of trade and other payables, as determined using discounted cash flow analysis. Trade and other payables are predominantly denominated in the functional currencies of subsidiary undertakings with less than 5% in other currencies (2017: less than 5%). |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Financial instruments and risk management | 23 Financial instruments and risk management Management of financial risks One of the principal responsibilities of Treasury is to manage the financial risks arising from the Group’s underlying operations. Specifically, Treasury manages, within an overall policy framework set by the Group’s Main Board and Corporate Finance Committee (CFC), the Group’s exposure to funding and liquidity, interest rate, foreign exchange and counterparty risks. The Group’s treasury position is monitored by the CFC which meets regularly throughout the year and is chaired by the Group Finance Director. The approach is one of risk reduction within an overall framework of delivering total shareholder return. The Group defines capital as net debt (note 20) and equity (note 19). The only externally imposed capital requirement for the Group is interest cover as described under interest rate risk below. The Group assesses its financial capacity by reference to cash flow, net debt and interest cover. Group policies include a set of financing principles and key performance indicators including the monitoring of credit ratings, interest cover and liquidity. These provide a framework within which the Group’s capital base is managed and, in particular, the policies on dividends (as a percentage of long-term sustainable earnings) and share buy-back are decided. The key objective of the financing principles is to appropriately balance the interests of equity and debt holders in driving an efficient financing mix for the Group. The Group’s average cost of debt in 2018 is 3.0% (2017: 3.3%). The Group manages its financial risks in line with the classification of its financial assets and liabilities in the Group's balance sheet and related notes. The Group’s management of specific risks is dealt with as follows: Liquidity risk It is the policy of the Group to maximise financial flexibility and minimise refinancing risk by issuing debt with a range of maturities, generally matching the projected cash flows of the Group and obtaining this financing from a wide range of sources . It is Group policy that short-term sources of funds (including drawings under both the Group US$4 billion US commercial paper (US CP) programme and the Group £3 billion euro commercial paper (ECP) programme) are backed by undrawn committed lines of credit and cash. Commercial paper is issued by B.A.T. International Finance p.l.c. and B.A.T Capital Corporation and guaranteed by British American Tobacco p.l.c.. At 31 December 2018, commercial paper of £536 million was outstanding (2017: £1,200 million). The Group utilises cash pooling and zero balancing bank account structures in addition to intercompany loans and borrowings to mobilise cash efficiently within the Group. The key objectives of Treasury in respect of cash and cash equivalents are to protect their principal value, to concentrate cash at the centre, to minimise the required debt issuance and to optimise the yield earned. The amount of debt issued by the Group is determined by forecasting the net debt requirement after the mobilisation of cash. The Group continues to target a solid investment-grade credit rating. Following the announcement of the agreement to acquire the remaining 57.8% of Reynolds American Inc. not already owned by the Group, in January 2017, Moody’s and S&P revised the Group’s rating to Baa2 and BBB+ with stable outlook, respectively. The Group’s strategy is to continue deleveraging post completion of the transaction and is seeking to recover to Baa1/BBB+ in the medium term. The Group is confident of its continued ability to successfully access the debt capital markets. As part of its short-term cash management, the Group invests in a range of cash and cash equivalents, including money market funds, which are regarded as highly liquid and are not exposed to significant changes in fair value. These are kept under continuous review as described in the credit risk section below. At 31 December 2018, cash and cash equivalents include £25 million invested in money market funds (2017: £668 million). Subsidiary companies are funded by share capital and retained earnings, loans from the central finance companies on commercial terms, or through local borrowings by the subsidiaries in appropriate currencies to predominantly fund short-to-medium term working capital requirements. All contractual borrowing covenants have been met and none of them is expected to inhibit the Group’s operations or funding plans. In January 2018, the Group repaid the £600 million that was drawn under the 364-day £3 billion Group revolving credit facility. The facility had a one-year extension option which was utilised in July 2018. In March and June 2018, the Group repaid €400 million and US$2,500 million bonds at maturity respectively. In March and April 2017, the Group arranged short term bilateral facilities with core relationship banks for a total amount of approximately £1.6 billion. These facilities provided an alternative source of cost-effective short-term funding for the Group and all matured prior to year-end 2017. In June 2017, the Group repaid US$600 $ . In July 2017, following the shareholder approvals of acquisition of RAI, the Group utilised its US$25 billion acquisition facility provided by a syndicate of relationship banks, comprising US$15 billion and US$5 billion bridge facilities with one and two-year maturities, respectively. In addition, the acquisition facility included two £1.9 billion (equivalent of US$2.5 billion) term loans with maturity in 2020 and 2022, respectively. In August 2017, the bridge facilities were refinanced in the US and European capital markets. Four series of bonds were issued in August 2017, pursuant to the EMTN programme and comprised of a £450 million bond maturing in August 2025 and three euro denominated bonds totalling €3.1 billion, comprising of a €1.1 billion bond maturing in August 2021, a €750 million bond maturing in November 2023 and a €1.25 billion bond maturing in January 2030. Eight series of US$ denominated unregistered bonds totalling US$17.25 billion were issued in August 2017 pursuant to Rule 144A with registration rights, whereby the Group committed to investors that the bonds would be exchangeable for registered notes. In October 2018, investors were offered to exchange their unregistered bonds for registered bonds in line with the registration rights. The exchange offer was completed in November with 99.7% of the bonds exchanged. Additionally, in 2017, the Group replaced its existing £3 billion revolving credit facility maturing in 2021 with a new two-tranche £6 billion revolving credit facility. This consists of a 364-day revolving credit facility of £3 billion (with a one-year extension, which was exercised in 2018, and a one-year term-out option), and a £3 billion revolving credit facility maturing in 2021. At 31 December 2018, the facility was undrawn £ The Group also increased the EMTN programme in 2017 from £15 billion to £25 billion and increased its US and European commercial paper programmes from US$3 billion to US$4 billion and from £1 billion to £3 billion, respectively, to accommodate the liquidity needs of the enlarged Group. Currency risk The Group is subject to exposure on the translation of the net assets of foreign currency subsidiaries and associates into its reporting currency, sterling. The Group’s primary balance sheet translation exposures are to the US dollar, Canadian dollar, euro, Danish krone, Swiss franc, South African rand, Russian rouble, Brazilian real, Australian dollar, Malaysian ringgit, Singaporean dollar and Indian Rupees. These exposures are kept under continuous review. The Group's policy on borrowings is to broadly match the currency of these borrowings with the currency of cash flows arising from the Group's underlying operations. Within this overall policy, the Group aims to minimise all balance sheet translation exposure where it is practicable and cost-effective to do so through matching currency assets with currency borrowings. The main objective of these policies is to protect shareholder value by increasing certainty and minimising volatility in earnings per share. At 31 December 2018, the currency profile of the Group’s gross debt, after taking into account derivative contracts, was 65% US dollar (2017: 62%), 13% euro (2017: 14%), 16% sterling (2017: 20%), and 6% other currencies (2017: 4%). The Group faces currency exposures arising from the translation of profits earned in foreign currency subsidiaries and associates and joint arrangements; these exposures are not normally hedged. Exposures also arise from: (i) foreign currency denominated trading transactions undertaken by subsidiaries. These exposures comprise committed and highly probable forecast sales and purchases, which are offset wherever possible. The remaining exposures are hedged within the Treasury policies and procedures with forward foreign exchange contracts and options, which are designated as hedges of the foreign exchange risk of the identified future transactions; and (ii) forecast dividend flows from subsidiaries to the centre. To ensure cash flow certainty, the Group enters into forward foreign exchange contracts which are designated as net investment hedges of the foreign exchange risk arising from the investments in these subsidiaries. IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of hypothetical changes of exchange rates in respect of non-functional currency financial assets and liabilities held across the Group. All other variables are held constant although, in practice, market rates rarely change in isolation. Financial assets and liabilities held in the functional currency of the Group’s subsidiaries, as well as non-financial assets and liabilities and translation risk, are not included in the analysis. The Group considers a 10% strengthening or weakening of the A 10% strengthening of functional currencies against non-functional currencies would result in pre-tax profit being £33 million higher (2017: £14 million lower; 2016: £2 million higher) and items recognised directly in other comprehensive income being £384 million higher (2017: £148 million higher; 2016: £413 million higher). A 10% weakening of functional currencies against non-functional currencies would result in pre-tax profit being £41 million lower (2017: £4 million higher; 2016: £4 million lower) and items recognised directly in other comprehensive income being £469 million lower (2017: £148 million lower; 2016: £505 million lower). The exchange sensitivities on items recognised directly in other comprehensive income relate to hedging of certain net asset currency positions in the Group, as well as on cash flow hedges in respect of future transactions, but does not include sensitivities in respect of exchange on non-financial assets or liabilities. Interest rate risk The objectives of the Group’s interest rate risk management policy are to lessen the impact of adverse interest rate movements on the earnings, cash flow and economic value of the Group and to safeguard against any possible breach of its financial covenants. Additional objectives are to minimise the cost of hedging and the associated counterparty risk. The Group targets an interest cover ratio, as calculated under its key central banking facilities, of greater than 5 and for 2018 it is 7.2 times (2017: 7.8 times; 2016: 12.2 times). The only externally imposed capital requirement the Group has is in respect of its centrally managed banking facilities, which require a gross interest cover of at least 4.5 times. In order to manage its interest rate risk, the Group maintains both floating rate and fixed rate debt. The Group sets targets (within overall guidelines) for the desired ratio of floating to fixed rate debt on a net basis (at least 50% fixed on a net basis in the short to medium term) as a result of regular reviews of market conditions and strategy by the Corporate Finance Committee and the board of the main central finance company. At 31 December 2018, the relevant ratios of floating to fixed rate borrowings were IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of hypothetical changes of interest rates in respect of financial assets and liabilities of the Group. All other variables are held constant although, in practice, market rates rarely change in isolation. For the purposes of this sensitivity analysis, financial assets and liabilities with fixed interest rates are not included. The Group considers a 100 basis point change in interest rates a reasonably possible change except where rates are less than 100 basis points. In these instances it is assumed that the interest rates increase by 100 basis points and decrease to zero for the purpose of performing the sensitivity analysis. The impact is calculated with reference to the financial asset or liability held as at the year-end, unless this is unrepresentative of the position during the year. A 100 basis point increase in interest rates would result in pre-tax profit being £90 million lower (2017: £108 million lower; 2016: £37 million lower). A 100 basis point decrease in interest rates, or less where applicable, would result in pre-tax profit being £74 million higher (2017: £77 million higher; 2016: £16 million higher). The effect of these interest rate changes on items recognised directly in other comprehensive income is not material in either year. Credit risk The Group has no significant concentrations of customer credit risk. Subsidiaries have policies in place requiring appropriate credit checks on potential customers before sales commence. The process for monitoring and managing credit risk once sales to customers have been made varies depending on local practice in the countries concerned. Certain territories have bank guarantees, other guarantees or credit insurance provided in the Group’s favour in respect of Group trade receivables, the issuance and terms of which are dependent on local practices in the countries concerned. All derivatives are subject to ISDA agreements or equivalent documentation. Cash deposits and other financial instruments give rise to credit risk on the amounts due from the related counterparties. Generally, the Group aims to transact with counterparties with strong investment grade credit ratings. However, the Group recognises that due to the need to operate over a large geographic footprint, this will not always be possible. Counterparty credit risk is managed on a global basis by limiting the aggregate amount and duration of exposure to any one counterparty, taking into account its credit rating. The credit ratings of all counterparties are reviewed regularly. The Group ensures that it has sufficient counterparty credit capacity of requisite quality to undertake all anticipated transactions throughout its geographic footprint, while at the same time ensuring that there is no geographic concentration in the location of counterparties. With the following exceptions, the maximum exposure to the credit risk of financial assets at the balance sheet date is reflected by the carrying values included in the Group’s balance sheet. In 2014, the Group entered into a guarantee arrangement in respect of the borrowings of the non-controlling interest in relation to the capital injection made to the Group’s Algerian business. The Group no longer has this credit exposure as it was repaid in 2018. The maximum exposure under the arrangement Price risk The Group is exposed to price risk on investments held by the Group, which are included in investments held at fair value on the consolidated balance sheet, but the quantum of such is not material. Hedge accounting In order to qualify for hedge accounting, the Group is required to document prospectively the economic relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the economic relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is repeated periodically to ensure that the hedge has remained, and is expected to remain highly effective. The prospective effectiveness testing determines that an economic relationship between the hedged item and the hedging instrument exists. In accordance with the Group Treasury Manual, the exact hedge ratios and profile of a hedge relationship will depend on several factors, including the desired degree of certainty and reduced volatility of net interest costs and market conditions, trends and expectations in the relevant markets. The sources of ineffectiveness include spot and forward differences, impact of time value and timing differences between periods in the hedged item and hedging instrument. The Group’s risk management strategy has been explained in further detail in note 23 under interest rate risk and currency risk. Fair value estimation The fair values of financial assets and liabilities with maturities of less than one year, other than derivatives, are assumed to approximate their book values. For other financial instruments which are measured at fair value in the balance sheet, the basis for fair values is described below. Fair value hierarchy The following table presents the Group's financial assets and liabilities that are measured at fair value in accordance with IFRS 13 classification hierarchy: 2018 2017 Level 1 £m Level 2 £m Level 3 £m Total £m Level 1 £m Level 2 £m Level 3 £m Total £m Assets at fair value Investment held at fair value (note 15) 141 – 76 217 91 – 16 107 Derivatives relating to – interest rate swaps (note 16) – 187 – 187 – 166 – 166 – cross-currency swaps (note 16) – 431 – 431 – 450 – 450 – forward foreign currency contracts (note 16) – 117 – 117 – 202 – 202 Assets at fair value 141 735 76 952 91 818 16 925 Liabilities at fair value Derivatives relating to – interest rate swaps (note 16) – 181 – 181 – 91 – 91 – cross-currency swaps (note 16) – 56 – 56 – – – – – forward foreign currency contracts (note 16) – 279 – 279 – 143 – 143 Liabilities at fair value – 516 – 516 – 234 – 234 Level 2 financial instruments are not traded in an active market, but the fair values are based on quoted market prices, broker/dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The Group’s level 2 financial instruments include OTC derivatives. Netting arrangements of derivative financial instruments The gross fair value of derivative financial instruments as presented in the Group balance sheet, together with the Group's rights of offset associated with recognised financial assets and recognised financial liabilities subject to enforceable master netting arrangements and similar agreements, is summarised as follows: 2018 2017 Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Financial Assets – Derivative Financial Instruments (note 16) 735 (295 ) 440 818 (211 ) 607 Financial Liabilities – Derivative Financial Instruments (note 16) (516 ) 295 (221 ) (234 ) 211 (23 ) 219 – 219 584 – 584 * No financial instruments have been offset in the Group balance sheet. The Group is subject to master netting arrangements in force with financial counterparties with whom the Group trades derivatives. The master netting arrangements determine the proceedings should either party default on their obligations. In case of any event of default: the non-defaulting party will calculate the sum of the replacement cost of outstanding transactions and amounts owed to it by the defaulting party. If that sum exceeds the amounts owed to the defaulting party, the defaulting party will pay the balance to the non-defaulting party. If the sum is less than the amounts owed to the defaulting party, the non-defaulting party will pay the balance to the defaulting party. The hedged items by risk category are presented below: 2018 Accumulated amount of fair value hedge adjustments on the hedged Line item in the Changes in fair Carrying amount of the hedged item item included in the carrying amount of the hedged item statement of financial value used for calculating Cash flow hedge reserve position where hedge Liabilities Liabilities the hedged item is included ineffectiveness for 2018 £m £m £m £m Fair value hedges Interest rate risk – borrowings 6,424 179 Borrowings (32 ) Cash flow hedges Interest rate risk – borrowings 2,819 Borrowings 189 (146 ) The change in the value used for calculating hedge ineffectiveness for hedged items designated under net investment hedge relationship is £226 million. As at 31 December 2018, the total balance of the cash flow hedge reserve was a loss of £177 million including a £146 million loss in relation to interest rate exposure and foreign currency exposure arising from borrowings held by the Group, a £98 million loss in relation to interest rate exposure on forecasted borrowings, and a £48 million gain in relation to deferred tax arising from cash flow hedges. The remainder related to the Group’s foreign currency exposure on forecasted transactions. |
Business combinations, disposal
Business combinations, disposals and other changes in the Group | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Business Combinations [Abstract] | |
Business combinations, disposals and other changes in the Group | 24 Business combinations, disposals and other changes in the Group (a) Reynolds American Inc. (“RAI”) On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of RAI In accordance with IFRS 3, the step-acquisition of RAI has been accounted for as if the Group has contributed its previously held equity interest in RAI at fair value as part of the consideration for acquiring 100% of the net assets of RAI. The value attributable to BAT’s shareholding was £30,145 million, making the total acquisition price £71,915 million. The difference between the fair value and the carrying value of the previously held equity interest has been recognised as a gain in the income statement. The goodwill of £34,280 million and brands and similar intangibles of £75,482 million were recognised in the transaction . (b) During 2018, 2017 and 2016, the Group acquired certain businesses and other tobacco assets as noted below. The financial impact of these transactions to the Group were immaterial individually and in aggregate. Except as noted, there were no material differences between the fair value and book values of net assets acquired in business combinations. On 22 November 2018, the Group completed the acquisition of Quantus Beteiligungs-und Beratungsgesellschaft mbH On 26 September 2018, 44% st Star Way Limited 6 . £3 . On 1 August 2017, Tobacco Press d.o.o. Mostar , 2 of £ 9 39 On 5 May 2017, the Group acquired certain tobacco assets, including a distribution company, Express Logistic and Distribution EOOD On 5 April 2017, the Group acquired the business and certain assets of Must Have Limited On 4 January 2017, the Group completed the acquisition of 100% of Winnington Holding AB On 20 April 2016, the Group completed the acquisition of 100% of Ten Motives Limited 10 Motives Limited On 30 December 2015, the Group acquired 100% of the CHIC Group On Blue Nile Cigarette Company Limited 1 On 30 September 2015, the Group acquired TDR (c) Non-controlling interests Included in the acquisition of non-controlling interests are the purchases of the remaining shares in British American Tobacco Vranje a.d. British American Tobacco Myanmar Limited During 2017, the Group acquired the remaining 49% interest in IPRESS d.o.o On 16 October 2015, the Group announced that it had concluded the auction related to its public tender offer in Brazil to acquire up to all of the 24.7% of Souza Cruz During 2015, the Group acquired a further 0.2 BAT Chile Operaciones S.A . 1 99 (d) Other transactions On 21 December 2017, the Group signed an agreement to acquire 100% of the share capital of Twisp Propriety Limited On 10 January 2019, the Group acquired a minority stake in AYR Limited |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | |
Share-based payments | 25 Share-based payments The Group operates a number of share-based payment arrangements of which the two principal ones are: Long-Term Incentive Plan (LTIP) Nil-cost options exercisable after three years from date of grant with a contractual life of ten years. Payout is subject to performance conditions based on earnings per share (40% of grant), Following the acquisition of RAI on 25 July 2017, underlying RAI shares for LTIPs were replaced with B.A.T American Depositary Shares (ADS). LTIP awards for ADSs are measured against the performance conditions of RAI at the maximum of 150% at the vesting date. Equity settled LTIPs were granted by RAI in March of 2018 (2017: March) with options exercisable after 3 years from the date of grant with the payment made no later than 90 days from date of vesting. Participants are not entitled to dividends prior to exercise of the options. Deferred Share Bonus Scheme (DSBS) Free ordinary shares released three years from date of grant and may be subject to forfeit if a participant leaves employment before the end of the three-year holding period. Participants receive a separate payment equivalent to a proportion of the dividend payment during the holding period. Both equity and cash-settled deferred shares are granted in March each year. The Group also has a number of other arrangements which are not material for the Group and these are as follows: Sharesave Scheme (SAYE) Options granted in March each year from 2011 onwards (previously November until 2009 and no options were granted during 2010) by invitation at a 20% discount to the market price. Options to this equity-settled scheme are exercisable at the end of a three year or five year savings contract. Participants are not entitled to dividends prior to the exercise of the options. The maximum amount that can be saved by a participant in this way is £6,000 in any tax year. Share Reward Scheme (SRS) and International Share Reward Scheme (ISRS) Free shares granted in April each year (maximum £3,600 in any year) under the equity-settled schemes are subject to a three- year holding period. Participants receive dividends during the holding period which are reinvested to buy further shares. Partnership Share Scheme Open to all eligible employees, where employees can allocate part of their pre-tax salary to purchase shares in British American Tobacco p.l.c.. The maximum amount that can be allocated in this way to any individual is £1,800 in any tax year. The shares purchased are held in a UK-based trust and are normally capable of transfer to participants tax free after a five-year holding period. Share-based payment expense The amounts recognised in the income statement in respect of share-based payments were as follows: 2018 2017 2016 Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m LTIP (note (a)) 70 - 56 3 25 6 DSBS (note (b)) 44 2 42 9 40 7 Other schemes 7 - 7 – 6 – Total recognised in the income statement (note 3(a)) 121 2 105 12 71 13 Share-based payment liability The Group issues to certain employees cash-settled share-based payments that require the Group to pay the intrinsic value of these share-based payments to the employee at the date of exercise. The Group has recorded liabilities in respect of vested and unvested grants at the end of 2018 and 2017: 2018 2017 Vested £m Unvested £m Vested £m Unvested £m LTIP 0.5 2.6 0.3 9.1 DSBS 0.2 6.1 0.3 11.6 Total liability 0.7 8.7 0.6 20.7 (a) Long-Term incentive Plan Details of the movements for the equity- and cash-settled LTIP scheme during the years ended 31 December 2018 and 31 December 2017, were as follows: 2018 2017 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 6,030 378 5,337 407 Granted during the period 3,067 66 1,690 152 Acquired from RAI - - 904 - Exercised during the period (1,739 ) (102 ) (746 ) (65 ) Forfeited during the period (450 ) (36 ) (1,155 ) (116 ) Outstanding at end of year 6,908 306 6,030 378 Exercisable at end of year 676 22 653 7 As at 31 December 2018, the Group has 6,908,000 shares (2017: 6,030,000 shares) outstanding which includes 1,208,129 shares (2017: 891,677 shares) which are related to RAI LTIP awards from which 72,033 shares (2017: 327,463 shares) are exercisable at the end of the year. The weighted average British American Tobacco p.l.c. share price at the date of exercise for share options exercised during the period was £38.90 (2017: £51.95; 2016: £45.80) for equity-settled and £40.62 (2017: £52.08; 2016: £47.00) for cash-settled options. The weighted average British American Tobacco p.l.c. share price for ADS on the New York Stock Exchange at the date of exercise for share options exercised during the period relating to equity-settled RAI LTIP awards was US$51.43 (2017: US$62.67). The outstanding shares for the year ended 31 December 2018 had a weighted average remaining contractual life of 8.1 years (2017: 8.1 years; 2016: 8.2 years) for the equity-settled scheme, 1.91 years for RAI equity-settled scheme (2017: 2.17 years) and 8.1 years (2017: 8.3 years; 2016: 7.9 years) for the cash-settled share-based payment arrangements. (b) Deferred Share Bonus Scheme Details of the movements for the equity- and cash-settled DSBS scheme during the years ended 31 December 2018 and 31 December 2017, were as follows: 2018 2017 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 2,962 382 3,225 423 Granted during the period 1,262 66 1,079 136 Exercised during the period (940 ) (145 ) (1,267 ) (165 ) Forfeited during the period (36 ) (22 ) (75 ) (12 ) Outstanding at end of year 3,248 281 2,962 382 Exercisable at end of year 79 5 61 5 The weighted average British American Tobacco p.l.c. share price at the date of exercise for share options exercised during the financial year was £40.00 (2017: £52.52; 2016: £42.26) for equity-settled and £40.51 (2017: £52.50; 2016: £41.97) for cash-settled options. The outstanding shares for the year ended 31 December 2018 had a weighted average remaining contractual life of 1.3 years (2017: 1.3 years; 2016: 1.3 years) for the equity-settled scheme and 1.1 years (2017: 1.2 years; 2016: 1.2 years) for the cash-settled scheme. Valuation assumptions Assumptions used in the Black-Scholes models to determine the fair value of share options at grant date were as follows: 2018 2017 LTIP DSBS LTIP DSBS Expected volatility (%) 18 18 18 18 Average expected term to exercise (years) 3.5 3.0 3.5 3.0 Risk-free rate (%) 1.0 1.0 0.3 0.3 Expected dividend yield (%) 5.0 5.0 3.2 3.2 Share price at date of grant (£) 38.94 38.94 52.11 52.11 Fair value at grant date (£) 29.39 33.50 41.04 47.27 Market condition features were incorporated into the Monte-Carlo models for the total shareholder return elements of the LTIP, in determining fair value at grant date. Assumptions used in these models were as follows: 2018 2017 LTIP LTIP Average share price volatility FMCG comparator group (%) 18 19 Average correlation FMCG comparator group (%) 31 31 Fair values determined from the Black-Scholes and Monte-Carlo models use assumptions revised at the end of each reporting period for cash-settled share-based payment arrangements. The expected British American Tobacco p.l.c. share price volatility was determined taking account of the return index (the share price index plus the dividend reinvested) over a five-year period. The FMCG share price volatility and correlation was also determined over the same periods. The average expected term to exercise used in the models has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural conditions, forfeiture and historical experience. The risk-free rate has been determined from market yield curves for government gilts with outstanding terms equal to the average expected term to exercise for each relevant grant. The expected dividend yield was determined by calculating the yield from the last two declared dividends divided by the grant share price. In addition to these valuation assumptions, LTIP awards contain earnings per share performance conditions. As these are non-market performance conditions they are not included in the determination of fair value of share options at the grant date, however they are used to estimate the number of awards expected to vest. This pay-out calculation is based on expectations published in analysts' forecasts. |
Group employees
Group employees | 12 Months Ended |
Dec. 31, 2018 | |
Number And Average Number Of Employees [Abstract] | |
Group employees | 26 Group employees The average number of persons employed by the Group and its associates during the year, including Directors, was 95,239 (2017: 91,402). 2018 Number 2017 Number United States 5,066 2,168 APME 15,074 14,075 AMSSA 19,351 19,158 ENA 26,102 25,192 Subsidiary undertakings 65,593 60,593 Associates 29,646 30,809 95,239 91,402 Included within the employee numbers for ENA are certain employees in the UK in respect of central functions. Some of the costs of these employees are allocated or charged to the various regions and markets in the Group. |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Related party disclosures | 27 Related party disclosures The Group has a number of transactions and relationships with related parties, as defined in IAS 24 Related Party Disclosures Transactions and balances with associates relate mainly to the sale and purchase of cigarettes and tobacco leaf. Amounts receivable from associates in respect of dividends included in the table below were £nil million (2017: £nil million; 2016: £221 million). The Group’s share of dividends from associates, included in other net income in the table below, was £211 million (2017: £688 million; 2016: £1,024 million). 2018 £m 2017 £m 2016 £m Transactions – revenue 473 366 370 – purchases (101 ) (218 ) (298 ) – other net income 216 699 1,023 Amounts receivable at 31 December 26 40 270 Amounts payable at 31 December (1 ) (1 ) (2 ) As explained in note 24, in 2017, the Group completed the acquisition of the remaining 57.8% of RAI not already owned. This transaction has not been included in the table above. On 17 December 2012, a wholly owned subsidiary of the Group, BATUS Japan Inc. (BATUSJ), entered into an Amendment and Extension Agreement (referred to as the Amendment) with a wholly owned subsidiary of RAI, R.J. Reynolds Tobacco Company (referred to as RJRTC). The Amendment modifies the American-blend Cigarette Manufacturing Agreement (referred to as the 2010 Agreement), effective as of 1 January 2010. Prior to the Amendment, the term of the 2010 Agreement was scheduled to expire on 31 December 2014, subject to early termination and extension provisions. Pursuant to the Amendment, the Manufacturing Agreement would remain in effect beyond 31 December 2014, provided that either RJRTC or BATUSJ may terminate the Manufacturing Agreement by furnishing three years’ notice to the other party. Such notice was given in January 2016. As a result of early termination of this agreement the Group agreed to a compensation payment of US$90 million of which US$7 million were paid to RJRTC on 22 September 2016, with the Group recognising the full expense of US$90 million as required by IFRS in 2016. The balance was paid in March 2017. During 2018, the Group acquired a further 44% interest in British American Tobacco Myanmar Limited and a further 11% interest in British American Tobacco Vranje. During 2017, the Group acquired the remaining 49% interest in IPRESS d.o.o. and a further 0.01% interest in British American Tobacco Chile Operaciones S.A. The combined costs are less than £1 million. During 2016, the Group received proceeds of £23 million in respect of its participation in the share buy-back programme conducted by RAI. This programme ceased in the fourth quarter of 2016. During 2016, the Group acquired the remaining 1% interest in Souza Cruz at a cost of £70 million. This transaction is shown as a £4 million increase in reserves attributable to the owners of the parent and a £4 million reduction in reserves attributable to non-controlling interests in note 19. As explained in note 12, contributions to the British American Tobacco UK Pension Fund are secured by a charge over the Group’s Head Office (Globe House) up to a maximum of £150 million. The key management personnel of British American Tobacco consist of the members of the Board of Directors of British American Tobacco p.l.c. and the members of the Management Board. No such person had any material interest during the year in a contract of significance (other than a service contract) with the Company or any subsidiary company. The term key management personnel in this context includes their close family members. 2018 £m 2017 £m 2016 £m The total compensation for key management personnel, including Directors, was: – salaries and other short-term employee benefits 21 24 18 – post-employment benefits 4 5 3 – share-based payments 18 16 12 43 45 33 The following table, which is not part of IAS24 disclosures, shows the aggregate emoluments of the Directors of the Company. Executive Directors Chairman Non-Executive Directors Total 2018 £'000 2017 £'000 2016 £'000 2018 £'000 2017 £'000 2016 £'000 2018 £'000 2017 £'000 2016 £'000 2018 £'000 2017 £'000 2016 £'000 Salary; fees; benefits; incentives – salary 2,211 2,122 2,057 – – – – – – 2,211 2,122 2,057 – fees – – – 680 660 645 1,092 1,042 1,051 1,772 1,702 1,696 – taxable benefits 427 385 335 116 129 106 303 195 122 846 709 563 – short-term incentives 5,031 4,689 4,622 – – – - – – 5,031 4,689 4,622 – long-term incentives 5,300 10,192 4,483 – – – - – – 5,300 10,192 4,483 Sub-total 12,969 17,388 11,497 796 789 751 1,395 1,237 1,173 15,160 19,414 13,421 Pension; other emoluments – pension 921 612 634 – – – – – – 921 612 634 – other emoluments 50 50 44 – – – – – – 50 50 44 Sub-total 971 662 678 – – – – – – 971 662 678 Total emoluments 13,940 18,050 12,175 796 789 751 1,395 1,237 1,173 16,131 20,076 14,099 Aggregate gains on LTIP shares exercised in the year Award Exercised LTIP shares Exercise date Price per share (£) Aggregate gain (£) Nicandro Durante 27 Mar 2015 122,477 27 Mar 2018 39.46 4,832,942 Ben Stevens 27 Mar 2015 66,925 27 Mar 2018 39.46 2,640,861 LTIP - Value of awards 2015 Shares Price per share (£) 1 Face value (£) Nicandro Durante 127,448 36.25 4,619,990 Ben Stevens 69,641 36.25 2,524,486 1 For information only as awards are made as nil cost options. In 2018, no Sharesave were exercised by Executive Directors. |
Contingent liabilities and fina
Contingent liabilities and financial commitments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Contingent Liabilities [Abstract] | |
Contingent liabilities and financial commitments | 28 Contingent liabilities and financial commitments 1. The Group is subject to contingencies pursuant to requirements that it complies with relevant laws, regulations and standards. 2. Failure to comply could result in restrictions in operations, damages, fines, increased tax, increased cost of compliance, interest charges, reputational damage or other sanctions. These matters are inherently difficult to quantify. In cases where the Group has an obligation as a result of a past event existing at the balance sheet date, if it is probable that an outflow of economic resources will be required to settle the obligation and if the amount of the obligation can be reliably estimated, a provision will be recognised based on best estimates and management judgment. 3. There are, however, contingent liabilities in respect of litigation, taxes in some countries and guarantees for which no provisions have been made. General Litigation Overview 1. There are a number of legal and regulatory actions, proceedings and claims against Group companies related to tobacco products that are pending in a number of jurisdictions. These proceedings include, among other things, claims for personal injury (both individual claims and class actions) and claims for economic loss arising from the treatment of smoking and health-related diseases (such as medical recoupment claims brought by local governments). 2. The plaintiffs in these cases seek recovery on a variety of legal theories, including negligence, strict liability in tort, design defect, failure to warn, fraud, misrepresentation, violations of unfair and deceptive trade practices statutes, conspiracy, medical monitoring and violations of competition and antitrust laws. The plaintiffs seek various forms of relief, including compensatory and, where available, punitive damages, treble or multiple damages and statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, attorneys' fees, and injunctive and other equitable relief. 3. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into the hundreds of millions and even hundreds of billions of pounds. 4. With the exception of the Engle Engle 5. Group companies generally do not settle claims. However, Group companies may enter into settlement discussions in some cases, if they believe it is in their best interests to do so. Exceptions to this general approach include, but are not limited to, actions taken pursuant to "offer of judgment" statutes and Filter Cases, as defined below. An "offer of judgment," if rejected by the plaintiff, preserves the Group's right to recover attorneys’ fees under certain statutes in the event of a verdict favourable to the Group. Such offers are sometimes made through court-ordered mediations. Other settlements by Group companies include the State Settlement Agreements (described below), the funding by various tobacco companies of a US$5.2 billion (approximately £4.1 billion) trust fund contemplated by the Master Settlement Agreement to benefit tobacco growers, the original Broin Engle 6. Although the Group intends to defend all pending cases vigorously, and believes that the Group's companies have valid bases for appeals of adverse verdicts and valid defences to all actions, and that an outflow of resources related to any individual case is not considered probable, litigation is subject to many uncertainties, and, generally, it is not possible to predict the outcome of any particular litigation pending against Group companies, or to reasonably estimate the amount or range of any possible loss. Furthermore, a number of political, legislative, regulatory and other developments relating to the tobacco industry and cigarette smoking have received wide media attention. These developments may negatively affect the outcomes of tobacco-related legal actions and encourage the commencement of additional similar litigation. Therefore, the Group does not provide estimates of the financial effect of the contingent liabilities represented by such litigation, as such estimates are not practicable. 7. The following table lists the categories of the tobacco-related actions pending against Group companies as of 31 December 2018 and the increase or decrease from the number of cases pending against Group Companies as of 31 December 2017. Details of the quantum of past judgments awarded against Group companies, the majority of which are under appeal, are also identified, along with any settlements reached during the relevant period. Given the volume and more active nature of the Engle et seq Case Type Case Numbers as at 31 December 2018 Case Numbers as at 31 December 2017 (note 1) Change in Number Increase/(Decrease) US tobacco related actions Medical reimbursement cases (note 2) 2 2 No change Class actions (note 3) 20 24 (4 ) Individual smoking and health cases (note 4) 111 99 12 West Virginia IPIC (note 5) 1 1 No change Engle Progeny Cases (note 6) 2,268 2,569 (301 ) Broin II Cases (note 7) 1,406 2,321 (915 ) Filter Cases (note 8) 58 71 (13 ) State Settlement Agreements – Enforcement and Validity (note 9) 3 2 1 Non-US tobacco related actions Medical reimbursement cases 19 19 No change Class actions (note 10) 13 14 (1 ) Individual smoking and health cases (note 11) 107 120 (13 ) (Note 1) This includes cases to which the RAI group companies were a party at such date. (Note 2) This category of cases includes the Department of Justice action. See note 28, paragraphs 20-24 and the list of Closed Litigation Matters. (Note 3) See note 28, paragraphs 25-39. (Note 4) This category of cases includes smoking and health cases alleging personal injuries caused by tobacco use or exposure brought by or on behalf of individual plaintiffs based on theories of negligence, strict liability, breach of express or implied warranty and violations of state deceptive trade practices or consumer protection statutes. The plaintiffs seek to recover compensatory damages, attorneys’ fees and costs and punitive damages. Out of the 111 active individual smoking and health cases, five judgments have been returned in the plaintiffs’ favour, awarding damages totalling US$209.4 million (approximately £164.4 million), all of which are on appeal. For a further description of these cases, see note 28, paragraph 40. (Note 5) The West Virginia IPIC cases are a series of roughly 1,200 cases, filed in West Virginia beginning in 1999, asserting claims against PM USA, Lorillard Tobacco, RJRT, B&W and The American Tobacco Company. These cases were brought in consolidated proceedings in West Virginia alleging personal injuries. The one claim upon which plaintiffs prevailed was a limited failure to instruct claim covering a narrow window of time. Only 30 plaintiffs qualified to pursue that narrow claim. In 2017, the court dismissed all claims of those 30 plaintiffs with prejudice pursuant to an agreement providing that each plaintiff who submits a release within one year will receive US$7,000 (approximately £5,496). In addition to the foregoing claims, various plaintiffs in 1999 and 2000 asserted claims against retailers and distributors (which have not been pursued in light of the result in the Phase I trial in defendants’ favour), as well as smokeless claims against various defendants including RJRT, Lorillard, American Snuff and B&W. 41 plaintiffs sought to pursue their smokeless claims in 2017. In April 2017, the court dismissed the claims of those 41 smokeless plaintiffs with prejudice. For a further discussion of the related plaintiffs’ claims, see note 28, paragraph 41. (Note 6) In July 1998, trial began in Engle v R.J. Reynolds Tobacco Co Engle Engle Engle Engle Engle (Note 7) Broin v Philip Morris, Inc Broin Broin Broin Broin (Note 8) Includes claims brought against Lorillard Tobacco and Lorillard by individuals who seek damages resulting from their alleged exposure to asbestos fibres that were incorporated into filter material used in one brand of cigarettes manufactured by a predecessor to Lorillard Tobacco for a limited period of time ending more than 50 years ago. Since 1 January 2016, Lorillard Tobacco and RJRT have paid, or have reached agreement to pay, a total of approximately US$30.2 million (approximately £23.7 million) in settlements to resolve 137 Filter Cases. See note 28, paragraph 41. (Note 9) Group companies’ expenses and payments under the State Settlement Agreements for 2018 amounted to US$2,741 million (approximately £2,152 million) in respect of settlement expenses and US$917 million (approximately £720 million) in respect of settlement cash payments. See note 28, paragraph 44. The pending cases referred to above relate to the enforcement, validity or interpretation of the State Settlement Agreements in which RJR Tobacco, B&W or Lorillard Tobacco is a party. See note 28, paragraphs 42-53. (Note 10) Outside the United States, there are 13 class actions being brought against Group companies (excluding one class action in Brazil that is included in the medical reimbursement category) as of 31 December 2018. These include class actions in the following jurisdictions: Brazil (1), Canada (11) and Venezuela (1). For a description of the Group companies’ class actions, see note 28, paragraphs 65-77. Pursuant to the judgment in 2015 in the two Quebec class actions, the plaintiffs were awarded damages and interest in the amount of CAD$15.6 billion (approximately £8.9 billion or US$11.4 billion), of which the Group companies’ share is CAD$10.4 billion (approximately £5.9 billion or US$7.6 billion). The class actions are currently under appeal. For a further description of the Quebec class actions, see note 28, paragraph 72. (Note 11) As at 31 December 2018, the jurisdictions with the most active individual cases against Group companies were, in descending order: Brazil (56), Italy (25), Chile (10), Canada (5), Argentina (5) and Ireland (2). There were a further four jurisdictions with one active case only. Out of these 107 cases, in 2018, 2 judgments have been returned in the plaintiffs’ favour as of 31 December 2018, one case in Brazil awarding damages totalling R$ 637,500 (approximately £129,149 or US$ $164,484) and one case in Italy awarding damages totalling €789,970, (approximately £709,054 or US$903,051), both of which are currently on appeal. 8. Certain terms and phrases used in this note 28 may require some explanation. a. "Judgment" or "final judgment" refers to the final decision of the court resolving the dispute and determining the rights and obligations of the parties. At the trial court level, for example, a final judgment generally is entered by the court after a jury verdict and after post-verdict motions have been decided. In most cases, the losing party can appeal a verdict only after a final judgment has been entered by the trial court. b. "Damages" refers to the amount of money sought by a plaintiff in a complaint, or awarded to a party by a jury or, in some cases, by a judge. "Compensatory damages" are awarded to compensate the prevailing party for actual losses suffered, if liability is proved. In cases in which there is a finding that a defendant has acted wilfully, maliciously or fraudulently, generally based on a higher burden of proof than is required for a finding of liability for compensatory damages, a plaintiff also may be awarded "punitive damages". Although damages may be awarded at the trial court stage, a losing party may be protected from paying any damages until all appellate avenues have been exhausted by posting a supersedeas bond. The amount of such a bond is governed by the law of the relevant jurisdiction and generally is set at the amount of damages plus some measure of statutory interest, modified at the discretion of the appropriate court or subject to limits set by a court or statute. c. "Settlement" refers to certain types of cases in which cigarette manufacturers, including RJRT, B&W and Lorillard Tobacco, have agreed to resolve disputes with certain plaintiffs without resolving the cases through trial. d. All sums set out in this note 28 have been converted to GBP and US$ using the following end closing rates as at December 2018: GBP 1 to US$ 1.273600, GBP 1 to CAD$1.739480, GBP 1 to EURO 1.1141192, GBP 1 to BRL 4.93616, GBP 1 to AOA 393.04188, GBP 1 to NGN 462.9536, GBP 1 to KRW 1421.08 and GBP 1 to HRK 8.25382, and GBP 1 to JPY 139.73302. US Litigation 9. Group companies, notably R. J. Reynolds Tobacco Company ("RJRT") (individually and as successor by merger to Lorillard Tobacco Company ("Lorillard Tobacco")) and Brown & Williamson Holdings, Inc. (formerly Brown & Williamson Tobacco Corporation) ("B&W") as well as other leading cigarette manufacturers, are defendants in a number of product liability cases. In a number of these cases, the amounts of compensatory and punitive damages sought are significant. 10. The total number of US tobacco product liability cases pending at 31 December 2018 involving RJRT, Lorillard Tobacco and/or B&W was approximately 3,900. As at 31 December 2018, British American Tobacco (Investments) Limited (“Investments”) has been served as a co-defendant in one of those cases (2017:1). No other UK-based Group company has been served as a co-defendant in any US tobacco product liability case pending as at 31 December 2018. 11. Since many of these pending cases seek unspecified damages, it is not possible to quantify the total amounts being claimed, but the aggregate amounts involved in such litigation are significant, possibly totalling billions of US dollars. The cases fall into four broad categories: medical reimbursement cases; class actions; individual cases and other claims. 12. RJRT (individually and as successor by merger to Lorillard Tobacco), American Snuff Co., Santa Fe Natural Tobacco Company, Inc. (“SFNTC”), R.J. Reynolds Vapor Company (“RJR Vapor”), RAI, Lorillard, other RAI affiliates and indemnitees, including but not limited to B&W (collectively, the "Reynolds Defendants"), believe that they have valid defences to the tobacco-related litigation claims against them, as well as valid bases for appeal of adverse verdicts against them. The Reynolds Defendants have, through their counsel, filed pleadings and memoranda in pending tobacco-related litigation that set forth and discuss a number of grounds and defences that they and their counsel believe have a valid basis in law and fact. 13. Scheduled trials. Trial schedules are subject to change, and many cases are dismissed before trial. In the US, there are 34 cases, exclusive of Engle Engle 14. Trial results. From 1 January 2016 through 31 December 2018, 117 individual smoking and health, Engle (a) Medical Reimbursement Cases 15. These civil actions seek to recover amounts spent by government entities and other third-party providers on healthcare and welfare costs claimed to result from illnesses associated with smoking. 16. At 31 December 2018, one US medical reimbursement suit ( Crow Creek Sioux Tribe v American Tobacco Co US Department of Justice Action 17. On 22 September 1999, the US Department of Justice brought an action in the US District Court for the District of Columbia against various industry members, including RJRT, Lorillard Tobacco, B&W, B.A.T Industries p.l.c. ("Industries") and Investments ( United States v Philip Morris USA Inc 18. Industries was dismissed for lack of personal jurisdiction on 28 September 2000. In addition, Investments was a defendant at the trial, but intervening changes in controlling law post-trial led to a 28 March 2011 court ruling that the court's Final Judgment and Remedial Order no longer applied to Investments prospectively, and for this reason, Investments would not have to comply with any of the remaining injunctive remedies being sought by the government. As the government did not appeal the 28 March 2011 ruling, this means that Investments is no longer in the case and is not subject to any injunctive relief that the court is expected to order against the remaining defendants. As the case continued as against RJRT and Lorillard Tobacco with respect to injunctive relief and related matters, the following is noted. 19. The non-jury trial of the RICO portion of the claim began on 21 September 2004, and ended on 9 June 2005. On 17 August 2006, the federal district court issued its Final Judgment and Remedial Order, which found certain defendants, including RJRT, B&W, Lorillard Tobacco and Investments, had violated RICO, but did not impose any direct financial penalties. The district court instead enjoined the defendants from committing future racketeering acts, participating in certain trade organisations, making misrepresentations concerning smoking and health and youth marketing, and using certain brand descriptors such as "low tar", "light", "ultra-light", "mild" and "natural". The district court also ordered the defendants to issue "corrective communications" on five subjects, including smoking and health and addiction, and to comply with further undertakings, including maintaining web sites of historical corporate documents and disseminating certain marketing information on a confidential basis to the government. In addition, the district court placed restrictions on the defendants' ability to dispose of certain assets for use in the United States, unless the transferee agrees to abide by the terms of the district court's order, and ordered certain defendants to reimburse the US Department of Justice its taxable costs incurred in connection with the case. 20. Defendants, including RJRT, Lorillard Tobacco, B&W and Investments, appealed, and the US government cross-appealed to the DC Circuit. On 22 May 2009, the DC Circuit affirmed the federal district court's RICO liability judgment, but vacated the order and remanded for further factual findings and clarification as to whether liability should be imposed against B&W, based on changes in the nature of B&W's business operations (including the extent of B&W's control over tobacco operations). The court also remanded on three other discrete issues relating to the injunctive remedies, including for the district court "to reformulate" the injunction on the use of low-tar descriptors "to exempt foreign activities that have no substantial, direct, and foreseeable domestic effects," and for the district court to evaluate whether corrective communications could be required at point-of-sale displays (which requirement the DC Circuit vacated). On 28 June 2010, the US Supreme Court denied the parties' petitions for further review. 21. On 22 December 2010, the district court dismissed B&W from the litigation. In November 2012, the trial court entered an order setting forth the text of the corrective statements and directed the parties to engage in discussions with the Special Master to implement them. After various proceedings and appeals, the federal district court in October 2017 ordered RJRT and the other US tobacco company defendants to fund the publishing of compelled public statements in various US media outlets, including in newspapers, and on television, the companies' websites and cigarette packaging. The compelled public statements began appearing in US newspapers on 24 November 2017 and ran serially over four months; they began appearing on national US broadcast television networks on 27 November 2017 and ran several times per week for one year. The statements also began appearing on RJRT websites on 18 June 2018 and first appeared on package onserts beginning in November 2018 (the onserts will be distributed periodically through mid-2020). The district court is considering mandating the display of the compelled public statements at retail point of sale; briefing on that issue concluded on 14 September 2018. (b) Class Actions 22. At 31 December 2018, RJRT, Lorillard Tobacco and B&W were named as a defendant in two separate actions attempting to assert claims on behalf of classes of persons allegedly injured or financially impacted by their smoking, and SFNTC was named in 18 separate cases relating to the use of the words “natural”, “additive-free”. or “organic” in Natural American Spirit advertising and promotional materials. If the classes are or remain certified, separate trials may be needed to assess individual plaintiffs' damages. Among the pending class actions, 19 specified the amount of the claim in the complaint, including 18 that alleged that the plaintiffs were seeking in excess of US$5,000,000 (approximately £3,900,000) and one that alleged that the plaintiffs were seeking less than US$75,000 (approximately £59,000) per class member plus unspecified punitive damages. No Additive/Natural/Organic Claim Cases 23. A total of 17 putative class actions have been filed in nine US federal district courts against SFNTC, a subsidiary of RAI, which cases generally allege, in various combinations, violations of state deceptive and unfair trade practice statutes, and claim state common law fraud, negligent misrepresentation, and unjust enrichment based on the use of descriptors such as "natural", "organic" and "100% additive-free" in the marketing, labelling, advertising, and promotion of SFNTC's Natural American Spirit brand cigarettes. In these actions, the plaintiffs allege that the use of these terms suggests that Natural American Spirit brand cigarettes are less harmful than other cigarettes and, for that reason, violated state consumer protection statutes or amounted to fraud or a negligent or intentional misrepresentation. The actions seek various categories of recovery, including economic damages, injunctive relief (including medical monitoring and cessation programmes), interest, restitution, disgorgement, treble and punitive damages, and attorneys' fees and costs. In April 2016, in response to a motion by the various plaintiffs, the US Judicial Panel on Multidistrict Litigation ("JPML") consolidated these cases for pre-trial purposes before a federal court in New Mexico. That court heard argument on defendants' motion to dismiss the current consolidated complaint on 9 June 2017. On 21 December 2017, the district court granted the motion in part, dismissing a number of claims with prejudice, and denied it in part. Previously established deadlines for class certification briefing and a class certification hearing have been suspended pending resolution of disputes concerning discovery. 24. On 7 November 2016, a public health advocacy organisation filed a putative class action ( Breathe DC v Santa Fe Natural Tobacco Co., Inc Other Putative Class Actions 25. Jones v. American Tobacco Co ., Inc. is a putative class action filed in December 1998 in the Circuit Court, Jackson County, Missouri. The action was brought by a plaintiff on behalf of a putative class of Missouri tobacco product users and purchasers against various defendants, including RJRT, Lorillard Tobacco and B&W, alleging that the plaintiffs' use of the defendants' tobacco products has caused them to become addicted to nicotine, and seeking an unspecified amount of compensatory and punitive damages. There is currently no activity in this case. 26. Young v. American Tobacco Co ., Inc. is a case filed in November 1997 in the Circuit Court, Orleans Parish, Louisiana against various US cigarette manufacturers, including RJRT and B&W, and parent companies of such manufacturers. This putative ETS class action was brought on behalf of a putative class of Louisiana residents who, though not themselves cigarette smokers, have been exposed to second-hand smoke from cigarettes manufactured by the defendants, and who allegedly suffered injury as a result of that exposure, and seeks an unspecified amount of compensatory and punitive damages. In March 2016, the court entered an order staying the case, including all discovery, pending the completion of an ongoing smoking cessation programme ordered by the court in a now concluded Louisiana state court certified class action, Engle Class Action and Progeny Cases (Florida) 27. In July 1998, trial began in Engle v. R. J. Reynolds Tobacco Co. 28. In July 2000, the jury in Phase II awarded the class a total of approximately US$145 billion (approximately £114 billion) in punitive damages, apportioned US$36.3 billion (approximately £28.5 billion) to RJRT, US$17.6 billion (approximately £13.8 billion) to B&W, and US$16.3 billion (approximately £12.8 billion) to Lorillard Tobacco. The three class representatives in the Engle 29. This decision was appealed and ultimately resulted in the Florida Supreme Court in December 2006 decertifying the class and allowing judgments entered for only two of the three Engle Engle Engl 30. During 2015, RJRT and Lorillard Tobacco, together with Philip Morris USA Inc. ("PM USA"), settled virtually all of the Engle Engle 31. As at 31 December 2018, there were approximately 2,268 Engle Engle 32. 109 Engle 33. The following chart identifies the number of trials in Engle Phase three trials/verdicts/judgments of individual Engle progeny cases 1 January 2016 to 31 December 2018: Total number of trials 109 Number of trials resulting in plaintiffs’ verdicts 46** Total damages awarded in final judgments against RJRT US$341,698,989 (approximately £270 million) Amount of overall damages comprising ‘compensatory damages’ (approximately) US$159,145,914 (of overall US$341,698,989) (approximately £125 million of £268 million) Amount of overall damages comprising ‘punitive damages’ (approximately) US$182,553,075 (of overall US$341,698,989) (approximately £143 million of £268 million) **Of the 46 trials resulting in plaintiffs’ verdicts 1 January 2016 to 31 December 2018: Number of adverse judgments appealed by RJRT 38 (note 12) Number of adverse judgments (not yet appealed), in which RJRT still has time to file an appeal 3 (note 13) Number of adverse judgments in which no appeal was, and can no longer be, sought 5 Appeals of individual Engle progeny cases 1 January 2016 to 31 December 2018: Number of adverse judgments appealed by RJRT 45 (note 14) Note 12: Of the 38 adverse judgments appealed by RJRT as a result of judgments arising in the period 1 January 2016 to 31 December 2018: a. 20 appeals remain undecided in the District Courts of Appeal, two additional cases were affirmed, but the time for filing a post-opinion motion is pending so they are not final, there is one case that was reversed for reinstatement of full compensatory amount, but the time for filing a post-opinion motion is pending so it is not final, and there is one case that was reversed to reduce the compensatory damages amount by the comparative fault found by the jury, but the time for filing a post-opinion motion is pending so it is not final; and b. 14 were decided and/or closed. Of these 14 appeals, 12 were affirmed in favour of the plaintiff (further review of the U.S. Supreme Court remains pending in 3, 1 is pending review of the U.S. Supreme Court, 1 is pending review of the Florida Supreme Court), 1 was reversed for new trial, however the judgments were paid, 1 in which there was an appeal of the judgment which was subsequently dismissed. The total damages award may vary depending on the outcome of the pending appeals. Note 13: One case (Bessent-Dixon) is not included as the case proceeded to a new punitive-only trial, while the compensatory judgment was stayed. RJRT still has time to file an appeal. Note 14: Of the 45 adverse judgments appealed by RJRT: a. 20 appeals remain undecided in the District Courts of Appeal, two additional cases were affirmed, but the time for filing a post-opinion motion is pending so they are not final, there is one case that was reversed for reinstatement of full compensatory amount, but the time for filing a post opinion motion is pending so it is not final, and there is one case that was reversed to reduce the compensatory damages amount by the comparative fault found by the jury, but the time for filing a post-opinion motion is pending so it is not final; b. 21 were decided and/or closed in the District Courts of Appeal. Of these 21 appeals, 15 were affirmed in favour of plaintiff (review of Florida Supreme Court sought in one case, review of the US Supreme Court has been sought in one case, and further review of the US Supreme Court remains pending in three cases). One had the liability findings affirmed but was reversed for reinstatement of full compensatory damages amount, however the judgment was paid, one was affirmed as to compensatory damages, but reversed for Plaintiff to seek punitive damages on negligence and strict liability claims, one was reversed for new trial, however the judgments were paid, two in which there was an appeal of the judgment which was subsequently dismissed and the judgment paid, and one was affirmed on compensatory damages but reversed on punitive damages and on retrial, a directed verdict was entered in favour of RJRT on punitive damages. RJRT has paid damages to plaintiffs in five cases that were not appealed that are now closed. The total damages award may vary depending on the outcome of the pending appeals; and c. Includes appeals of six adverse judgements rendered prior to 1 January 2016 that were appealed by RJRT in the period from 1 January 2016 to 31 December 2018. 34. By statute, Florida applies a US$200 million (approximately £157 million) bond cap to all Engle Engle Engle Engle 35. In 2018, RJRT or Lorillard Tobacco has paid judgments in 33 Engle 36. In addition, accruals for damages and attorneys' fees and statutory interest for 8 cases ( Starr-Blundell v R. J. Reynolds Tobacco Co., Odom v. R. J. Reynolds Tobacco Co., Nally v. R. J. Reynolds Tobacco Co., Johnston v. R. J. Reynolds Tobacco Co., Searcy v. R. J. Reynolds Tobacco Co., Fox v. R. J. Reynolds Tobacco Co., Lima v. R. J. Reynolds Tobacco Co and Pardue v. R. J. Reynolds Tobacco Co (c) Individual Cases 37. As of 31 December 2018, 111 individual cases were pending in the United States against RJRT, Lorillard Tobacco and/or B&W. This category of cases includes smoking and health cases alleging personal injuries caused by tobacco use or exposure brought by or on behalf of individual plaintiffs based on theories of negligence, strict liability, breach of express or implied warranty, and violations of state deceptive trade practices or consumer protection statutes. The plaintiffs seek to recover compensatory damages, attorneys' fees and costs, and punitive damages. The category does not include the West Virginia personal injury cases (“West Virginia IPIC”) cases, Engle Broin 38. The following chart identifies the number of individual cases pending as of 31 December 2018 as against the number pending as of 31 December 2017, along with the number of West Virginia IPIC cases, Engle progeny cases, Broin II cases, and Filter Cases, which are discussed further below. Case Type US Case Numbers 31 December 2018 US Case Numbers 31 December 2017 Change in Number Increase / (Decrease) US tobacco related actions Individual Smoking and Health Cases (note 15) 111 99 12 West Virginia IPIC (Number of Plaintiffs) (note 16) 1 (1) 1 (564) No change / (563) Engle Progeny Cases (Number of Plaintiffs) (note 17) 2,268 (2,841) 2,569 (3,276) (301) (435) Broin II Cases (note 18) 1,406 2,321 (915 ) Filter Cases (note 19) 58 71 (13 ) (Note 15) Out of the 111 pending individual smoking and health cases, five have received adverse verdicts in the court of first instance or on appeal, and the total amount of those verdicts is US$209.4 million (approximately £164.4 million). (Note 16) The West Virginia IPIC cases are a series of roughly 1,200 cases, filed in West Virginia beginning in 1999, asserting claims against PM USA, Lorillard Tobacco, RJRT, B&W and The American Tobacco Company. These cases were brought in consolidated proceedings in West Virginia alleging personal injuries, where the first phase of the trial began on 15 April 2013 and on 15 May 2013 the jury returned a verdict for defendants on all but one of plaintiffs' claims (the verdict was affirmed on appeal). The one claim upon which plaintiffs prevailed was a limited failure to instruct claim covering a narrow window of time. Only 30 plaintiffs qualified to pursue that narrow claim. In 2017, those 30 plaintiffs agreed to resolve their claims for US$7,000 (approximately £5,496) per case. All of those failure to instruct claims have been dismissed with prejudice, with the agreement that each plaintiff who submi |
Interests in subsidiaries
Interests in subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Subsidiaries [Abstract] | |
Interests in subsidiaries | 29 Interests in subsidiaries Subsidiaries with material non-controlling interests Non-controlling interests principally arise from the Group's listed investment in Malaysia (British American Tobacco (Malaysia) Berhad), where the Group held 50% of the listed holding company in 2018, 2017 and 2016. The Group has assessed that it exercises de facto control over Malaysia as it has the practical ability to direct the business through effective control of the company’s board as a result of the Group controlling the largest shareholding block in comparison to other shareholdings which are widely dispersed. Summarised financial information for Malaysia is shown below as required by IFRS 12. As part of the Group’s reporting processes, Malaysia report consolidated financial information for the Malaysia group which has been adjusted to comply with Group accounting policies which may differ to local accounting practice. Goodwill in respect of Malaysia, which arose as a result of the acquisition of the Rothmans group referred to in note 9, has not been included as part of the net assets below. In addition, no adjustments have been made to the information below for the elimination of intercompany transactions and balances with the rest of the Group. Summarised financial information 2018 £m 2017 £m 2016 £m Revised Revised Revenue 231 237 317 Profit for the year 87 89 129 – Attributable to non-controlling interests 43 44 64 Total comprehensive income 87 87 146 – Attributable to non-controlling interests 43 43 73 Dividends paid to non-controlling interests (40 ) (64 ) (59 ) Summary net assets: Non-current assets 16 18 31 Current assets 116 101 103 Non-current liabilities – (5 ) (4 ) Current liabilities (129 ) (120 ) (94 ) Total equity at the end of the year 3 (6 ) 36 – Attributable to non-controlling interests 1 (3 ) 18 Net cash generated from operating activities 86 67 108 Net cash generated in investing activities (2 ) 14 45 Net cash used in financing activities (77 ) (86 ) (151 ) Differences on exchange 1 (1 ) 1 Increase/(decrease) in net cash and cash equivalents 8 (6 ) 3 Net cash and cash equivalents at 1 January 2 8 5 Net cash and cash equivalents at 31 December 10 2 8 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers Other shareholdings The Group holds 92% of the equity shares of PT Bentoel Internasional Investama Tbk (“Bentoel”). In 2011, the Group sold 984 million shares, representing approximately 14% of Bentoel’s share capital, for the purposes of fulfilling certain obligations pursuant to Bapepam LK (Indonesia) takeover regulations. The Group simultaneously entered into a total return swap on 971 million of the shares. In June 2016, the Group and other investors participated in a rights issue by Bentoel, increasing its stake in Bentoel to 92%. Simultaneously, the Group amended the total return swap to take account of an addition 1,684 million shares. The shares subject to the total return swap now represent 7% of Bentoel’s issued capital. While the Group does not have legal ownership of these shares, it retains the risks and rewards associated with them which results in the Group continuing to recognise an effective interest in 99% of Bentoel’s net assets and results. Refer to note 11 for information on the Group’s 42% investment in Tisak d.d.. |
Condensed consolidating financi
Condensed consolidating financial information | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Condensed Consolidating Financial Information [Abstract] | |
Condensed consolidating financial information | 30 Condensed consolidating financial information The following consolidating financial information is required by the rules of the Securities and Exchange Commission and has been prepared as a requirement of the Regulation S-X 3-10. The following condensed consolidating financial information relates to the guarantees of: • US$11 billion RAI unsecured notes; • US$231 million of Lorillard unsecured notes; and • US$17.2 billion of bonds representing the registered portion (99.7%) of a total US$17.25 billion of bonds issued by BATCAP in connection with the acquisition of RAI. The condensed consolidating financial information has been prepared as a requirement of the Regulation S-X 3-10. All financial statements and financial information provided by or with respect to the US business or RAI (and/or the RAI Group) are prepared on the basis of US GAAP and constitute the primary financial statements or financial information of the US business or RAI (and/or the RAI Group). Solely for the purpose of consolidation within the results of BAT p.l.c. and the BAT Group, this financial information is then converted to International Financial Reporting Standards as issued by the IASB and adopted by the European Union (IFRS). To the extent any such financial information provided in these financial statements relates to the US business or RAI (and/or the RAI Group) it is provided as an explanation of the US business’ or RAI’s (and/or the RAI Group’s) primary US GAAP-based financial statements and information. With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers (a) RAI and Lorillard unsecured notes The following condensed consolidating financial information relates to the guarantees of: US$11 billion (2017: US$12.2 billion) RAI unsecured notes (referred to as “RB” below) and US$231 million of Lorillard unsecured notes (referred to as “LB” below). The subsidiaries disclosed below are wholly owned and the guarantees provided are full and unconditional, and joint and several. The following condensed consolidating financial information includes the accounts and activities of: a. British American Tobacco p.l.c. (parent guarantor of RB and LB), referred to as “BAT p.l.c.” in financials below; b. R.J. Reynolds Tobacco Company (issuer of LB), referred to as “RJRT” in financials below; c. Reynolds American Inc. (issuer of RB, subsidiary guarantor of LB), referred to as “RAI” in financials below; d. R.J. Reynolds Tobacco Holdings Inc. (subsidiary guarantor of RB and LB), referred to as “RJRTH” in financials below; e. other direct and indirect subsidiaries of the BAT Group that are not guarantors; f. elimination entries necessary to consolidate the parent with the issuer, the subsidiary guarantors and non-guarantor subsidiaries; and g. the BAT Group on a consolidated basis. Condensed Consolidated Income Statement Year ended 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Revenue — 7,752 — — 16,959 (219 ) 24,492 Raw materials and consumables used — (662 ) — — (4,161 ) 159 (4,664 ) Changes in inventories of finished goods and work in progress — (4 ) — — 118 — 114 Employee benefit costs (5 ) (169 ) (13 ) — (2,822 ) 4 (3,005 ) Depreciation, amortisation and impairment costs — (91 ) — — (947 ) — (1,038 ) Other operating income — 3 22 — 3,847 (3,787 ) 85 Loss on reclassification from amortised cost to fair value — — — — (3 ) — (3 ) Other operating expenses (124 ) (6,579 ) (17 ) — (3,819 ) 3,871 (6,668 ) (Loss)/profit from operations (129 ) 250 (8 ) — 9,172 28 9,313 Net finance income/(costs) 95 9 (421 ) 3 (947 ) (120 ) (1,381 ) Share of post-tax results of associates and joint ventures — — — — 419 — 419 Profit before taxation (34 ) 259 (429 ) 3 8,644 (92 ) 8,351 Taxation on ordinary activities — (100 ) 93 1 (2,135 ) — (2,141 ) Equity income from subsidiaries 6,210 2,569 3,436 2,755 — (14,970 ) — Profit for the year 6,176 2,728 3,100 2,759 6,509 (15,062 ) 6,210 Attributable to: Owners of the parent 6,176 2,728 3,100 2,759 6,331 (15,062 ) 6,032 Non-controlling interests — — — — 178 — 178 6,176 2,728 3,100 2,759 6,509 (15,062 ) 6,210 Condensed Consolidated Income Statement Year ended 31 December 2017 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Revenue — 3,459 — — 16,243 (138 ) 19,564 Raw materials and consumables used — (346 ) — — (4,286 ) 112 (4,520 ) Changes in inventories of finished goods and work in progress — (7 ) — — (507 ) 1 (513 ) Employee benefit costs (8 ) (117 ) (35 ) (2 ) (2,525 ) 8 (2,679 ) Depreciation, amortisation and impairment costs — (28 ) — — (874 ) — (902 ) Other operating income — 7 34 — 1,859 (1,756 ) 144 Other operating expenses (101 ) (2,889 ) (6 ) — (3,499 ) 1,813 (4,682 ) (Loss)/profit from operations (109 ) 79 (7 ) (2 ) 6,411 40 6,412 Net finance income/(costs) 3 11 (190 ) 9 (908 ) (19 ) (1,094 ) Share of post-tax results of associates and joint ventures — — — — 24,209 — 24,209 Profit before taxation (106 ) 90 (197 ) 7 29,712 21 29,527 Taxation on ordinary activities — (240 ) 61 (3 ) 8,311 — 8,129 Equity income from subsidiaries 37,656 3,870 4,259 3,893 — (49,678 ) — Profit for the year 37,550 3,720 4,123 3,897 38,023 (49,657 ) 37,656 Attributable to: Owners of the parent 37,550 3,720 4,123 3,897 37,852 (49,657 ) 37,485 Non-controlling interests — — — — 171 — 171 37,550 3,720 4,123 3,897 38,023 (49,657 ) 37,656 Condensed Consolidated Income Statement Year ended 31 December 2016 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Revenue — — — — 14,130 — 14,130 Raw materials and consumables used — — — — (3,777 ) — (3,777 ) Changes in inventories of finished goods and work in progress — — — — 44 — 44 Employee benefit costs (7 ) — — — (2,274 ) 7 (2,274 ) Depreciation, amortisation and impairment costs — — — — (607 ) — (607 ) Other operating income — — — — 176 — 176 Other operating expenses (75 ) — — — (3,037 ) 75 (3,037 ) (Loss)/profit from operations (82 ) — — — 4,655 82 4,655 Net finance (costs)/income (54 ) — — — (637 ) 54 (637 ) Share of post-tax results of associates and joint ventures — — — — 2,227 — 2,227 Profit before taxation (136 ) — — — 6,245 136 6,245 Taxation on ordinary activities — — — — (1,406 ) — (1,406 ) Equity income from subsidiaries 4,839 — — — — (4,839 ) — Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Attributable to: Owners of the parent 4,703 — — — 4,648 (4,703 ) 4,648 Non-controlling interests — — — — 191 — 191 4,703 — — — 4,839 (4,703 ) 4,839 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Profit for the year 6,176 2,728 3,100 2,759 6,509 (15,062 ) 6,210 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — — — 3,099 — 3,099 Differences on exchange — — — — 3,868 — 3,868 Cash flow hedges — — — — (41 ) — (41 ) Net investment hedges — — — — (708 ) — (708 ) Associates - share of OCI, net of tax — — — — (38 ) — (38 ) Tax on items that may be reclassified — — — — 18 — 18 Items that will not be reclassified subsequently to profit or loss: — — — — 115 — 115 Retirement benefit schemes — — — — 142 — 142 Associates - share of OCI, net of tax — — — — 6 — 6 Tax on items that will not be reclassified — — — — (33 ) — (33 ) Total other comprehensive income for the year, net of tax — — — — 3,214 — 3,214 Share of subsidiaries OCI (other reserves) 115 — — — — (115 ) — Share of subsidiaries OCI (retained earnings) 3,099 — — — — (3,099 ) — Total comprehensive income/(expense) for the year, net of tax 9,390 2,728 3,100 2,759 9,723 (18,276 ) 9,424 Attributable to: Owners of the parent 9,390 2,728 3,100 2,759 9,538 (18,276 ) 9,239 Non-controlling interests — — — — 185 — 185 9,390 2,728 3,100 2,759 9,723 (18,276 ) 9,424 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2017 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Profit for the year 37,550 3,720 4,123 3,897 38,023 (49,657 ) 37,656 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — — — (3,809 ) — (3,809 ) Differences on exchange — — — — (3,084 ) — (3,084 ) Cash flow hedges — — — — (171 ) — (171 ) Investments held at fair value — — — — (27 ) — (27 ) Net investment hedges — — — — 357 — 357 Associates - share of OCI, net of tax — — — — (918 ) — (918 ) Tax on items that may be reclassified — — — — 34 — 34 Items that will not be reclassified subsequently to profit or loss: — — — — 681 — 681 Retirement benefit schemes — — — — 827 — 827 Associates - share of OCI, net of tax — — — — 25 — 25 Tax on items that will not be reclassified — — — — (171 ) — (171 ) Total other comprehensive expense for the year, net of tax — — — — (3,128 ) — (3,128 ) Share of subsidiaries OCI (other reserves) 681 — — — — (681 ) — Share of subsidiaries OCI (retained earnings) (3,809 ) — — — — 3,809 — Total comprehensive income/(expense) for the year, net of tax 34,422 3,720 4,123 3,897 34,895 (46,529 ) 34,528 Attributable to: Owners of the parent 34,422 3,720 4,123 3,897 34,728 (46,529 ) 34,361 Non-controlling interests — — — — 167 — 167 34,422 3,720 4,123 3,897 34,895 (46,529 ) 34,528 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2016 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — — — 1,760 — 1,760 Differences on exchange — — — — 1,270 — 1,270 Cash flow hedges — — — — 55 — 55 Net investment hedges — — — — (961 ) — (961 ) Associates - share of OCI, net of tax — — — — 1,415 — 1,415 Tax on items that may be reclassified — — — — (19 ) — (19 ) Items that will not be reclassified subsequently to profit or loss: — — — — (173 ) — (173 ) Retirement benefit schemes — — — — (229 ) — (229 ) Associates - share of OCI, net of tax — — — — 20 — 20 Tax on items that will not be reclassified — — — — 36 — 36 Total other comprehensive income for the year, net of tax — — — — 1,587 — 1,587 Share of subsidiaries OCI (other reserves) (173 ) — — — — 173 — Share of subsidiaries OCI (retained earnings) 1,760 — — — — (1,760 ) — Total comprehensive income/(expense) for the year, net of tax 6,290 — — — 6,426 (6,290 ) 6,426 Attributable to: Owners of the parent 6,290 — — — 6,180 (6,290 ) 6,180 Non-controlling interests — — — — 246 — 246 6,290 — — — 6,426 (6,290 ) 6,426 Condensed Consolidated Balance Sheet As at 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Assets Intangible assets — 2,935 — 7,737 113,342 (1 ) 124,013 Property, plant and equipment — 763 1 — 4,402 — 5,166 Investments in subsidiaries 32,543 21,368 30,625 19,636 — (104,172 ) — Investments in associates and joint ventures — — — — 1,737 — 1,737 Retirement benefit assets — — — — 1,147 — 1,147 Deferred tax assets — 521 17 4 (198 ) — 344 Trade and other receivables — 5 464 32 762 (578 ) 685 Investments held at fair value — — — — 39 — 39 Derivative financial instruments — — — — 556 — 556 Total non-current assets 32,543 25,592 31,107 27,409 121,787 (104,751 ) 133,687 Inventories — 711 — — 5,319 (1 ) 6,029 Income tax receivable — — — — 74 — 74 Trade and other receivables 7,306 1,102 820 59 4,431 (10,130 ) 3,588 Investments held at fair value — — — — 178 — 178 Derivative financial instruments — — — — 179 — 179 Cash and cash equivalents 6 — — — 2,602 (6 ) 2,602 7,312 1,813 820 59 12,783 (10,137 ) 12,650 Assets classified as held-for-sale — — — — 5 — 5 Total current assets 7,312 1,813 820 59 12,788 (10,137 ) 12,655 Total assets 39,855 27,405 31,927 27,468 134,575 (114,888 ) 146,342 Equity - capital and reserves Share capital 614 14,948 14,348 22,586 1,921 (53,803 ) 614 Share premium, capital redemption and merger reserves 22,854 — — — 28,755 (25,003 ) 26,606 Other reserves 204 (46 ) (44 ) (46 ) (335 ) (66 ) (333 ) Retained earnings 11,291 8,420 6,853 4,888 36,974 (29,869 ) 38,557 Owners of the parent 34,963 23,322 21,157 27,428 67,315 (108,741 ) 65,444 Non-controlling interests — — — — 244 — 244 Total equity 34,963 23,322 21,157 27,428 67,559 (108,741 ) 65,688 Liabilities Borrowings 1,571 126 8,140 — 35,018 (1,571 ) 43,284 Retirement benefit liabilities — 853 53 18 741 — 1,665 Deferred tax liabilities — — — — 17,776 — 17,776 Other provisions for liabilities 1 1 — — 330 (1 ) 331 Trade and other payables 8 15 89 — 1,529 (586 ) 1,055 Derivative financial instruments — — — — 214 — 214 Total non-current liabilities 1,580 995 8,282 18 55,608 (2,158 ) 64,325 Borrowings 2,062 98 1,573 — 3,497 (3,005 ) 4,225 Income tax payable — 8 133 — 712 — 853 Other provisions for liabilities — 20 — — 298 — 318 Trade and other payables 1,248 2,962 782 22 6,599 (982 ) 10,631 Derivative financial instruments 2 — — — 302 (2 ) 302 Total current liabilities 3,312 3,088 2,488 22 11,408 (3,989 ) 16,329 Total equity and liabilities 39,855 27,405 31,927 27,468 134,575 (114,888 ) 146,342 Condensed Consolidated Balance Sheet As at 31 December 2017 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Assets Intangible assets — 2,780 — 7,284 107,722 (1 ) 117,785 Property, plant and equipment — 677 2 — 4,203 — 4,882 Investments in subsidiaries 58,255 17,217 29,165 18,972 — (123,609 ) — Investments in associates and joint ventures — — — — 1,577 — 1,577 Retirement benefit assets — — — — 1,123 — 1,123 Deferred tax assets — 320 16 4 (7 ) — 333 Trade and other receivables — 23 860 42 826 (995 ) 756 Investments held at fair value — — — — 42 — 42 Derivative financial instruments — — — — 590 — 590 Total non-current assets 58,255 21,017 30,043 26,302 116,076 (124,605 ) 127,088 Inventories — 721 — — 5,144 (1 ) 5,864 Income tax receivable — — 339 — 121 — 460 Trade and other receivables 7,365 — 571 9 5,725 (9,617 ) 4,053 Investments held at fair value — — — — 65 — 65 Derivative financial instruments — — — — 228 — 228 Cash and cash equivalents 5 2 2 — 3,287 (5 ) 3,291 7,370 723 912 9 14,570 (9,623 ) 13,961 Assets classified as held-for-sale — — — — 5 — 5 Total current assets 7,370 723 912 9 14,575 (9,623 ) 13,966 Total assets 65,625 21,740 30,955 26,311 130,651 (134,228 ) 141,054 Equity - capital and reserves Share capital 614 14,070 13,509 21,260 1,297 (50,136 ) 614 Share premium, capital redemption and merger reserves 22,939 — — — 26,602 (22,939 ) 26,602 Other reserves 805 (25 ) (24 ) (24 ) (3,392 ) (732 ) (3,392 ) Retained earnings 36,511 5,128 6,276 5,055 37,434 (53,469 ) 36,935 Owners of the parent 60,869 19,173 19,761 26,291 61,941 (127,276 ) 60,759 Non-controlling interests — — — — 222 — 222 Total equity 60,869 19,173 19,761 26,291 62,163 (127,276 ) 60,981 Liabilities Borrowings 1,571 186 8,212 — 35,629 (1,571 ) 44,027 Retirement benefit liabilities — 926 42 20 833 — 1,821 Deferred tax liabilities — — — — 17,129 — 17,129 Other provisions for liabilities — 1 — — 353 — 354 Trade and other payables 8 18 102 — 1,933 (1,003 ) 1,058 Derivative financial instruments — — — — 79 — 79 Total non-current liabilities 1,579 1,131 8,356 20 55,956 (2,574 ) 64,468 Borrowings 2,058 40 1,009 — 4,374 (2,058 ) 5,423 Income tax payable — 23 — — 697 — 720 Other provisions for liabilities — 4 — — 395 — 399 Trade and other payables 1,119 1,369 1,829 — 6,911 (2,320 ) 8,908 Derivative financial instruments — — — — 155 — 155 Total current liabilities 3,177 1,436 2,838 — 12,532 (4,378 ) 15,605 Total equity and liabilities 65,625 21,740 30,955 26,311 130,651 (134,228 ) 141,054 Condensed Consolidated Cash Flow Statement Year ended 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (45 ) 1,670 349 (7 ) 8,249 79 10,295 Net cash generated from/(used in) investing activities 187 3,039 4,280 3,366 (877 ) (11,016 ) (1,021 ) Net cash (used in)/generated from financing activities (140 ) (4,711 ) (4,631 ) (3,359 ) (11,391 ) 14,602 (9,630 ) Net cash flows generated from/(used in) operating, investing and financing activities 2 (2 ) (2 ) — (4,019 ) 3,665 (356 ) Differences on exchange (1 ) — — — (138 ) 1 (138 ) Increase/(decrease) in net cash and cash equivalents in the year 1 (2 ) (2 ) — (4,157 ) 3,666 (494 ) Net cash and cash equivalents at 1 January* 5 2 2 — 2,813 — 2,822 Net cash and cash equivalents at 31 December 6 — — — (1,344 ) 3,666 2,328 Condensed Consolidated Cash Flow Statement Year ended 31 December 2017 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (12 ) (1,860 ) (270 ) (11 ) 7,488 12 5,347 Net cash generated from/(used in) investing activities 2 (88 ) 1,116 1 (19,512 ) (63 ) (18,544 ) Net cash generated from/(used in) financing activities 10 1,950 (844 ) 10 21,030 (7,397 ) 14,759 Net cash flows generated from/(used in) operating, investing and financing activities — 2 2 — 9,006 (7,448 ) 1,562 Differences on exchange — — — — (391 ) — (391 ) Increase/(decrease) in net cash and cash equivalents in the year — 2 2 — 8,615 (7,448 ) 1,171 Net cash and cash equivalents at 1 January* 5 — — — 1,646 — 1,651 Net cash and cash equivalents at 31 December 5 2 2 — 10,261 (7,448 ) 2,822 Condensed Consolidated Cash Flow Statement Year ended 31 December 2016 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (23 ) — — — 4,610 23 4,610 Net cash generated from/(used in) investing activities 24 — — — (571 ) (93 ) (640 ) Net cash generated from/(used in) financing activities — — — — 1,746 (5,975 ) (4,229 ) Net cash flows generated from/(used in) operating, investing and financing activities 1 — — — 5,785 (6,045 ) (259 ) Differences on exchange 1 — — — 179 — 180 Increase/(decrease) in net cash and cash equivalents in the year 2 — — — 5,964 (6,045 ) (79 ) Net cash and cash equivalents at 1 January* 3 — — — 1,727 — 1,730 Net cash and cash equivalents at 31 December 5 — — — 7,691 (6,045 ) 1,651 *The opening balance of net cash and cash equivalents represents external cash held by the parent guarantor, issuers, subsidiary guarantors and non-guarantor subsidiaries. ( b ) BATCAP bonds The following condensed consolidating financial information is in respect of US$17.2 billion of bonds representing the registered portion (99.7%) of a total US$17.25 billion principal amount of bonds issued by BATCAP in connection with the exchange offer required by the registration rights agreement entered into in connection with the bond offering related to the acquisition of RAI. The following condensed consolidating financial information includes the accounts and activities of: a. British American Tobacco p.l.c. (parent guarantor), referred to as “BAT p.l.c.” in financials below; b. B.A.T Capital Corporation (issuer), referred to as “BATCAP” in financials below; c. B.A.T. International Finance p.l.c. (subsidiary guarantor), referred to as “BATIF” in the financials below; d. British American Tobacco Holdings (The Netherlands) B.V. (subsidiary guarantor), referred to as “BATHTN” in the financials below; e. B.A.T. Netherlands Finance B.V. and Reynolds American Inc. (subsidiary guarantors), referred to as “BATNF” and “RAI” respectively in the financials below; f. other direct and indirect subsidiaries of the BAT Group that are not guarantors; g. elimination entries necessary to consolidate the parent with the issuer, the subsidiary guarantors and non-guarantor subsidiaries; and h. the BAT Group on a consolidated basis. The information presented is based on the results for the twelve-month period ended 31 December 2018, and the revised results for the twelve-month period ended 31 December 2017 and 31 December 2016 as explained in notes 1 and 31. Condensed Consolidated Income Statement Year ended 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Revenue — — — — — 24,492 — 24,492 Raw materials and consumables used — — — — — (4,664 ) — (4,664 ) Changes in inventories of finished goods and work in progress — — — — — 114 — 114 Employee benefit costs (5 ) — — (2 ) (13 ) (2,990 ) 5 (3,005 ) Depreciation, amortisation and impairment costs — — — — — (1,038 ) — (1,038 ) Other operating income — — — — 22 63 — 85 Loss on reclassification from amortised cost to fair value — — — — — (3 ) — (3 ) Other operating expenses (124 ) (3 ) (1 ) (4 ) (17 ) (6,643 ) 124 (6,668 ) (Loss)/Profit from operations (129 ) (3 ) (1 ) (6 ) (8 ) 9,331 129 9,313 Net finance income/(costs) 95 239 96 248 (421 ) (599 ) (1,039 ) (1,381 ) Share of post-tax results of associates and joint ventures — — — — — 419 — 419 Profit before taxation (34 ) 236 95 242 (429 ) 9,151 (910 ) 8,351 Taxation on ordinary activities — (79 ) 7 1 93 (2,163 ) — (2,141 ) Equity income from subsidiaries 6,210 — — — 3,436 — (9,646 ) — Profit for the year 6,176 157 102 243 3,100 6,988 (10,556 ) 6,210 Attributable to: Owners of the parent 6,176 157 102 243 3,100 6,810 (10,556 ) 6,032 Non-controlling interests — — — — — 178 — 178 6,176 157 102 243 3,100 6,988 (10,556 ) 6,210 Condensed Consolidated Income Statement Year ended 31 December 2017 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Revenue — — — — — 19,564 — 19,564 Raw materials and consumables used — — — — — (4,520 ) — (4,520 ) Changes in inventories of finished goods and work in progress — — — — — (513 ) — (513 ) Employee benefit costs (8 ) — — (3 ) (35 ) (2,641 ) 8 (2,679 ) Depreciation, amortisation and impairment costs — — — — — (902 ) — (902 ) Other operating income — 1 — 1 33 109 — 144 Other operating expenses (101 ) (1 ) (1 ) (2 ) (7 ) (4,671 ) 101 (4,682 ) (Loss)/Profit from operations (109 ) — (1 ) (4 ) (9 ) 6,426 109 6,412 Net finance income/(costs) 3 (62 ) (22 ) 636 (191 ) (1,403 ) (55 ) (1,094 ) Share of post-tax results of associates and joint ventures — — — — — 24,209 — 24,209 Profit before taxation (106 ) (62 ) (23 ) 632 (200 ) 29,232 54 29,527 Taxation on ordinary activities — 10 (40 ) 4 61 8,094 — 8,129 Equity income from subsidiaries 37,656 — — — 4,259 — (41,915 ) — Profit for the year 37,550 (52 ) (63 ) 636 4,120 37,326 (41,861 ) 37,656 Attributable to: Owners of the parent 37,550 (52 ) (63 ) 636 4,120 37,155 (41,861 ) 37,485 Non-controlling interests — — — — — 171 — 171 37,550 (52 ) (63 ) 636 4,120 37,326 (41,861 ) 37,656 Condensed Consolidated Income Statement Year ended 31 December 2016 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Revenue — — — — — 14,130 — 14,130 Raw materials and consumables used — — — — — (3,777 ) — (3,777 ) Changes in inventories of finished goods and work in progress — — — — — 44 — 44 Employee benefit costs (7 ) — — (3 ) — (2,271 ) 7 (2,274 ) Depreciation, amortisation and impairment costs — — — — — (607 ) — (607 ) Other operating income — — — — — 176 — 176 Other operating expenses (75 ) — (4 ) — — (3,033 ) 75 (3,037 ) (Loss)/profit from operations (82 ) — (4 ) (3 ) — 4,662 82 4,655 Net finance (costs)/income (54 ) — 1,006 (412 ) — (1,231 ) 54 (637 ) Share of post-tax results of associates and joint ventures — — — — — 2,227 — 2,227 Profit before taxation (136 ) — 1,002 (415 ) — 5,658 136 6,245 Taxation on ordinary activities — — (2 ) 65 — (1,469 ) — (1,406 ) Equity income from subsidiaries 4,839 — — — — — (4,839 ) — Profit for the year 4,703 — 1,000 (350 ) — 4,189 (4,703 ) 4,839 Attributable to: Owners of the parent 4,703 — 1,000 (350 ) — 3,998 (4,703 ) 4,648 Non-controlling interests — — — — — 191 — 191 4,703 — 1,000 (350 ) — 4,189 (4,703 ) 4,839 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Profit for the year 6,176 157 102 243 3,100 6,988 (10,556 ) 6,210 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — (101 ) 15 — — 3,185 — 3,099 Differences on exchange — — — — — 3,868 — 3,868 Cash flow hedges — (101 ) 15 — — 45 — (41 ) Net investment hedges — — — — — (708 ) — (708 ) Associates - share of OCI, net of tax — — — — — (38 ) — (38 ) Tax on items that may be reclassified — — — — — 18 — 18 Items that will not be reclassified subsequently to profit or loss: — — — — — 115 — 115 Retirement benefit schemes — — — — — 142 — 142 Associates - share of OCI, net of tax — — — — — 6 — 6 Tax on items that will not be reclassified — — — — — (33 ) — (33 ) Total other comprehensive (expense)/income for the year, net of tax — (101 ) 15 — — 3,300 — 3,214 Share of subsidiaries OCI (other reserves) 115 — — — — — (115 ) — Share of subsidiaries OCI (retained earnings) 3,099 — — — — — (3,099 ) — Total comprehensive income/(expense) for the year, net of tax 9,390 56 117 243 3,100 10,288 (13,770 ) 9,424 Attributable to: Owners of the parent 9,390 56 117 243 3,100 10,103 (13,770 ) 9,239 Non-controlling interests — — — — — 185 — 185 9,390 56 117 243 3,100 10,288 (13,770 ) 9,424 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2017 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Profit for the year 37,550 (52 ) (63 ) 636 4,120 37,326 (41,861 ) 37,656 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — (242 ) (21 ) — — (3,546 ) — (3,809 ) Differences on exchange — — — — — (3,084 ) — (3,084 ) Cash flow hedges — (242 ) (10 ) — — 81 — (171 ) Investments held at fair value — — — — — (27 ) — (27 ) Net investment hedges — — (11 ) — — 368 — 357 Associates - share of OCI, net of tax — — — — — (918 ) — (918 ) Tax on items that may be reclassified — — — — — 34 — 34 Items that will not be reclassified subsequently to profit or loss: — — — — — 681 — 681 Retirement benefit schemes — — — — — 827 — 827 Associates - share of OCI, net of tax — — — — — 25 — 25 Tax on items that will not be reclassified — — — — — (171 ) — (171 ) Total other comprehensive expense for the year, net of tax — (242 ) (21 ) — — (2,865 ) — (3,128 ) Share of subsidiaries OCI (other reserves) 681 — — — — — (681 ) — Share of subsidiaries OCI (retained earnings) (3,809 ) — — — — — 3,809 — Total comprehensive income/(expense) for the year, net of tax 34,422 (294 ) (84 ) 636 4,120 34,461 (38,733 ) 34,528 Attributable to: Owners of the parent 34,422 (294 ) (84 ) 636 4,120 34,294 (38,733 ) 34,361 Non-controlling interests — — — — — 167 — 167 34,422 (294 ) (84 ) 636 4,120 34,461 (38,733 ) 34,528 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2016 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Profit for the year 4,703 — 1,000 (350 ) — 4,189 (4,703 ) 4,839 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — (397 ) — — 2,157 — 1,760 Differences on exchange — — — — — 1,270 — 1,270 Cash flow hedges — — 5 — — 50 — 55 Net investment hedges — — (402 ) — — (559 ) — (961 ) Associates - share of OCI, net of tax — — — — — 1,415 — 1,415 Tax on items that may be reclassified — — — — — (19 ) — (19 ) Items that will not be reclassified subsequently to profit or loss: — — — — — (173 ) — (173 ) Retirement benefit schemes — — — — — (229 ) — (229 ) Associates - share of OCI, net of tax — — — — — 20 — 20 Tax on items that will not be reclassified — — — — — 36 — 36 Total other comprehensive (expense)/income for the year, net of tax — — (397 ) — — 1,984 — 1,587 Share of subsidiaries OCI (other reserves) (173 ) — — — — — 173 — Share of subsidiaries OCI (retained earnings) 1,760 — — — — — (1,760 ) — Total comprehensive income/(expense) for the year, net of tax 6,290 — 603 (350 ) — 6,173 (6,290 ) 6,426 Attributable to: Owners of the parent 6,290 — 603 (350 ) — 5,927 (6,290 ) 6,180 Non-controlling interests — — — — — 246 — 246 6,290 — 603 (350 ) — 6,173 (6,290 ) 6,426 Condensed Consolidated Balance Sheet As at 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Assets Intangible assets — — — — — 124,013 — 124,013 Property, plant and equipment — — — — 1 5,165 — 5,166 Investments in subsidiaries 32,543 — 718 3,732 30,625 — (67,618 ) — Investments in associates and joint ventures — — — — — 1,737 — 1,737 Retirement benefit assets — — — 15 — 1,132 — 1,147 Deferred tax assets — 74 — — 17 253 — 344 Trade and other receivables — 15,707 21,911 — 464 (38,343 ) 946 685 Investments held at fair value — — — — — 39 — 39 Derivative financial instruments — — 708 — — (7 ) (145 ) 556 Total non-current assets 32,543 15,781 23,337 3,747 31,107 93,989 (66,817 ) 133,687 Inventories — — — — — 6,029 — 6,029 Income tax receivable — — — — — 74 — 74 Trade and other receivables 7,306 2,567 19,576 15 820 (13,626 ) (13,070 ) 3,588 Investments held at fair value — — — — — 178 — 178 Derivative financial instruments — — 405 — — (215 ) (11 ) 179 Cash and cash equivalents 6 9 56 — — 2,537 (6 ) 2,602 7,312 2,576 20,037 15 820 (5,023 ) (13,087 ) 12,650 Assets classified as held-for-sale — — — — — 5 — 5 Total current assets 7,312 2,576 20,037 15 820 (5,018 ) (13,087 ) 12,655 Total assets 39,855 18,357 43,374 3,762 31,927 88,971 (79,904 ) 146,342 Equity - capital and reserves Share capital 614 — 231 91 14,348 614 (15,284 ) 614 — Share premium, capital redemption and merger reserves 22,854 30 — 3,401 — 33,562 (33,241 ) 26,606 — Other reserves 204 (195 ) (1,091 ) 363 (44 ) (333 ) 763 (333 ) Retained earnings 11,291 105 2,841 (100 ) 6,853 38,557 (20,990 ) 38,557 Owners of the parent 34,963 (60 ) 1,981 3,755 21,157 72,400 (68,752 ) 65,444 Non-controlling interests — — — — — 244 — 244 Total equity 34,963 (60 ) 1,981 3,755 21,157 72,644 (68,752 ) 65,688 Liabilities Borrowings 1,571 15,599 18,450 — 8,140 (1,422 ) 946 43,284 Retirement benefit liabi |
Accounting Policy Changes and R
Accounting Policy Changes and Regional Restructure | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Initial Application Of Standards Or Interpretations [Abstract] | |
Accounting Policy Changes and Regional Restructure | 31 Accounting policy changes and regional restructure Revisions to previously issued consolidated financial statements Adoption of IFRS 15 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers Segment revision In connection with the acquisition of RAI, the Group has revised its organisational structure. RAI is reported as a separate region (United States). The markets which previously comprised EEMEA merged with the Americas, Western Europe and Asia-Pacific to form three new regions. The markets in the Middle East merged with Asia-Pacific to form the Asia-Pacific and Middle East region (APME). The markets in East and Central Africa, West Africa and Southern Africa merged with the Americas region to form the Americas and Sub-Saharan Africa region (AmSSA). The markets in Russia, Ukraine, Caucasus, Central Asia, Belarus, Turkey and North Africa merged with the Western Europe region to form the Europe and North Africa region (ENA). Accordingly the following disclosures have been revised in these consolidated financials: - Note 2 Segmental analyses - Note 9 Intangible assets - Note 26 Group employees Adoption of new accounting standards effective 1 January 2018 Adoption of IFRS 9 In addition, with effect from 1 January 2018, the Group has adopted IFRS 9 Financial Instruments The cumulative impact of adopting the Standard, including the effect of tax entries, has been recognised as a restatement of opening reserves in 2018, and is £38 million, arising from the impairment of financial assets under the expected loss model. A simplified “lifetime expected loss model” is available for balances arising as a result of revenue recognition, by applying a standard rate of provision on initial recognition of trade debtors based upon the Group’s historical experience of credit loss modified by expectations of the future, and increasing this provision to take account of overdue receivables. Applying the requirements of IFRS 9 has resulted in a decrease of trade and other debtors of £45 million as at 1 January 2018. IFRS 9 also changes the classification and measurement of financial assets. The category of available-for-sale investments (where fair value changes were deferred in reserves until disposal of the investment) has been replaced with the category of financial assets at Fair Value through Profit and Loss (for most investments) and the category of financial assets at Fair Value through Other Comprehensive Income (for qualifying equity investments), and the available-for-sale reserve at 1 January 2018 has been reclassified into retained earnings. In addition, certain loans and receivables which do not meet the measurement tests for amortised cost classification under IFRS 9 have been reclassified as financial assets at Fair Value through Profit and Loss at the same date. The Group has used the term “investments held at fair value” to refer to all of these financial assets both pre- and post- the adoption of IFRS 9. 31 December 2017 Impact of IFRS 9 01 Jan 2018 Reported Adoption of IFRS 15 Revised Financial assets reclass Expected loss impairment Revised for IFRS 9 £m £m £m £m £m £m Assets Non-current assets Deferred tax assets 317 16 333 - 7 340 Trade and other receivables 756 - 756 (2 ) - 754 Investments held at fair value 42 - 42 2 - 44 Other 125,957 - 125,957 - - 125,957 Total non-current assets 127,072 16 127,088 - 7 127,095 Current assets Trade and other receivables 4,053 - 4,053 (144 ) (45 ) 3,864 Investments held at fair value 65 - 65 144 - 209 Other 9,848 - 9,848 - - 9,848 Total current assets 13,966 - 13,966 - (45 ) 13,921 Total assets 141,038 16 141,054 - (38 ) 141,016 Equity Capital and reserves Share capital 614 - 614 - - 614 Share premium, capital redemption and merger reserves 26,602 - 26,602 - - 26,602 Other reserves (3,395 ) 3 (3,392 ) (9 ) - (3,401 ) Retained earnings 36,983 (48 ) 36,935 9 (38 ) 36,906 Owners of the parent 60,804 (45 ) 60,759 - (38 ) 60,721 Non-controlling interests 222 - 222 - - 222 Total equity 61,026 (45 ) 60,981 - (38 ) 60,943 Liabilities Non-current liabilities Other 64,468 - 64,468 - - 64,468 Total non-current liabilities 64,468 - 64,468 - - 64,468 Current liabilities Trade and other payables 8,847 61 8,908 - - 8,908 Other 6,697 - 6,697 - - 6,697 Total current liabilities 15,544 61 15,605 - - 15,605 Total equity and liabilities 141,038 16 141,054 - (38 ) 141,016 Adoption of new accounting standards effective 1 January 2019 Adoption of IFRS 16 As set out in note 1, IFRS 16 Leases In adopting IFRS 16, the Group will apply the modified retrospective approach consistently across the Group, with no restatement of prior periods, as permitted by the Standard. On the initial implementation of the Standard, previously recognised operating leases will be capitalised as right-to-use assets and financial liabilities will be recognised at the same initial value. The Group will take advantage of certain practical expedients available under the Standard including: • “grandfathering” previously recognised lease arrangements; • applying a single discount rate to a portfolio of leases with reasonably similar characteristics; • assessing whether a lease is onerous prior to applying the Standard; • applying hindsight in determining the lease term if the contract contains options to extend or terminate the lease; and • not applying the capitalisation requirements of the Standard to leases for which the lease term ends within 12 months of the date of initial application. Going forward, the Group will also adopt several practical expedients under the Standard including: • not applying the requirements of IFRS 16 to leases of intangible assets; • applying the portfolio approach where appropriate to do so; • not applying the recognition and measurement requirements of IFRS 16 to short-term leases and to leases of low-value assets; and • not separating non-lease components from lease components (except in the case of property-related leases). The anticipated impact of the new Standard to the Group’s balance sheet at 1 January 2019, and a reconciliation to reported leasing commitments in note 28, is shown below: £m Minimum lease commitments as disclosed in note 28 690 Additional commitments on the exercise of options 28 Low value leases and short-term leases excluded (24 ) Discounted to present value (132 ) To be capitalised as lease liabilities at 1 January 2019 562 Prepaid leases reclassified from receivables 3 To be capitalised as right-to-use assets at 1 January 2019 565 The weighted average incremental borrowing rate applied in discounting lease commitments was 5.76%. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), IFRS as adopted by the European Union (EU). IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the Group’s consolidated financial statements for the periods presented. The consolidated financial statements have been prepared on a going concern basis under the historical cost convention except as described in the accounting policy below on financial instruments. With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers In addition, with effect from 1 January 2018, the Group has adopted IFRS 9 Financial Instruments Financial Instruments IFRS 9 has also changed the classification and measurement of financial assets. The category of available-for-sale investments (where fair value changes were deferred in reserves until disposal of the investment) has been replaced with the category of financial assets at Fair Value through Profit and Loss (for most investments) and the category of financial assets at Fair Value through Other Comprehensive Income (for qualifying equity investments). The available-for-sale reserve at 1 January 2018 has been reclassified as appropriate into retained earnings. In addition, certain loans and receivables which do not meet the measurement tests for amortised cost classification under IFRS 9 have been reclassified as financial assets at Fair Value through Profit and Loss at the same date. Given the immateriality of the various investment classes and to avoid clutter on the face of the balance sheet, the Group will use the term “investments held at fair value” to refer to all of these financial assets both pre- and post- the adoption of IFRS 9. For further details on the impact on the Group’s balance sheet of these changes, refer to note 31. The Group has adopted the hedge accounting requirements of IFRS 9 prospectively from 1 January 2018. All of the Group’s hedging relationships at the end of 2017 are considered to be continuing hedge relationships on the adoption of IFRS 9. In addition, with effect from 1 January 2018, the Group has changed certain estimates of useful economic lives for cigarette-making machinery across the Group, harmonising depreciation rates used by the historic BAT Group and by Reynolds American Inc. from 14 years and 30 years, respectively, to a standard 20-year life. The effect of the change is not material to the Group, and is estimated to be around £66 million for the year. Reynolds American Inc. recognised an impairment charge of £13 million in adopting the new estimate of useful economic lives. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. The key estimates and assumptions are set out in the accounting policies below, together with the related notes to the accounts. The critical accounting estimates include: - the review of asset values, especially indefinite life assets such as goodwill and certain trademarks and similar intangibles. The key assumptions used in respect of the impairment testing are the determination of cash-generating units, the budgeted cash flows of these units, the long-term growth rate for cash flow projections and the rate used to discount the cash flow projections. These are described in note 9; - the estimation of and accounting for retirement benefit costs. The determination of the carrying value of assets and liabilities, as well as the charge for the year, and amounts recognised in other comprehensive income, involves judgements made in conjunction with independent actuaries. These involve estimates about uncertain future events based on the environment in different countries, including life expectancy of scheme members, salary and pension increases, inflation, as well as discount rates and asset values at the year end. The assumptions used by the Group and sensitivity analysis are described in note 12; - the estimation of amounts to be recognised in respect of taxation and legal matters, and the estimation of other provisions for liabilities and charges are subject to uncertain future events, may extend over several years and so the amount and/or timing may differ from current assumptions. The accounting policy for taxation is explained below. The recognised deferred tax assets and liabilities, together with a note of unrecognised amounts, are shown in note 13, and a contingent tax asset is explained in note 6(b). Other provisions for liabilities and charges are as set out in note 21. The accounting policy on contingent liabilities, which are not provided for, is set out below and the contingent liabilities of the Group are explained in note 28. The application of these accounting policies to the payments made and credits recognised under the Master Settlement Agreement by Reynolds American Inc.(“Reynolds”) is described in note 3(d); and - the estimation of the fair values of acquired net assets arising in a business combination and the allocation of the purchase consideration between the underlying net assets acquired, including intangible assets other than goodwill, on the basis of their fair values. These estimates are prepared in conjunction with the advice of independent valuation experts where appropriate. The relevant transactions for 2018, 2017 and 2016 are described in note 24. The critical accounting judgements include: - the definition of adjusting items, which are separately disclosed as memorandum information, is explained below and the impact of these on the calculation of adjusted earnings per share is described in note 7; - the determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exists in relation to the investments held by the Group. This is assessed after taking into account the Group’s ability to appoint Directors to the entity’s Board, its relative shareholding compared with other shareholders, any significant contracts or arrangements with the entity or its other shareholders and other relevant facts and circumstances; and - the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on the free access to foreign currency, or multiple exchange rates. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management’s best judgement at the date of the financial statements. In the future, actual experience may deviate from these estimates and assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the circumstances change. These consolidated financial statements were authorised for issue by the Board of Directors on 27 February 2019. |
Basis of consolidation | Basis of consolidation The consolidated financial information includes the financial statements of British American Tobacco p.l.c. and its subsidiary undertakings, collectively “the Group”, together with the Group’s share of the results of its associates and joint arrangements. A subsidiary is an entity controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group’s interest in the equity capital is long term and over whose operating and financial policies the Group exercises a significant influence. They are accounted for using the equity method. Joint arrangements comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of the entity require unanimous consent. Joint operations are jointly-controlled arrangements where the parties to the arrangement have rights to the underlying assets and obligations for the underlying liabilities relating to the arrangement. The Group accounts for its share of the assets, liabilities, income and expenses of any such arrangement. Joint ventures comprise arrangements where the parties to the arrangement have rights to the net assets of the arrangement. They are accounted for using the equity method. |
Foreign currencies | Foreign currencies and hyperinflationary territories The functional currency of the Parent Company is sterling and this is also the presentation currency of the Group. The income and cash flow statements of Group undertakings expressed in currencies other than sterling are translated to sterling using exchange rates applicable to the dates of the underlying transactions. Average rates of exchange in each year are used where the average rate approximates the relevant exchange rate at the date of the underlying transactions. Assets and liabilities of Group undertakings are translated at the applicable rates of exchange at the end of each year. In territories where there are restrictions on the free access to foreign currency or multiple exchange rates, the applicable rates of exchange are regularly reviewed. The differences between retained profits translated at average and closing rates of exchange are taken to reserves, as are differences arising on the retranslation to sterling (using closing rates of exchange) of overseas net assets at the beginning of the year, and are presented as a separate component of equity. They are recognised in the income statement when the gain or loss on disposal of a Group undertaking is recognised. Foreign currency transactions are initially recognised in the functional currency of each entity in the Group using the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of foreign currency assets and liabilities at year end rates of exchange are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges, on intercompany net investment loans and qualifying net investment hedges. Foreign exchange gains or losses recognised in the income statement are included in profit from operations or net finance costs depending on the underlying transactions that gave rise to these exchange differences. In addition, for hyperinflationary countries where the effect on the Group results would be significant, the financial statements Financial Reporting in Hyperinflationary Economies Impairment of Assets The results and balance sheets of operations in hyperinflationary territories are translated at the period end rate. In the case of Venezuela, the Group |
Revenue | Revenue Revenue principally comprises sales of cigarettes, other tobacco products, and nicotine products, to external customers. Revenue excludes duty, excise and other taxes and is after deducting rebates, returns and other similar discounts and payments to direct and indirect customers. Revenue is recognised when control of the goods is transferred to a customer; this is usually evidenced by a transfer of the significant risks and rewards of ownership upon delivery to the customer, which in terms of timing is not materially different to the date of shipping. |
Retirement benefit costs | Retirement benefit costs The Group operates both defined benefit and defined contribution schemes including post-retirement healthcare schemes. The net deficit or surplus for each defined benefit pension scheme is calculated in accordance with IAS 19 Employee Benefits For defined benefit schemes, the actuarial cost charged to profit from operations consists of current service cost, net interest on the net defined benefit liability or asset, past service cost and the impact of any settlements. Some benefits are provided through defined contribution schemes and payments to these are charged as an expense as they fall due. |
Share-based payments | Share-based payments The Group has equity-settled and cash-settled share-based compensation plans. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group’s estimate of awards that will eventually vest. For plans where vesting conditions are based on total shareholder returns, the fair value at date of grant reflects these conditions, whereas earnings per share vesting conditions are reflected in the calculation of awards that will eventually vest over the vesting period. For cash-settled share-based payments, a liability equal to the portion of the services received is recognised at its current fair value determined at each balance sheet date. Fair value is measured by the use of the Black-Scholes option pricing model, except where vesting is dependent on market conditions when the Monte-Carlo option pricing model is used. The expected life used in the models has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. |
Research and development | Research and development Research expenditure is charged to income in the year in which it is incurred. Development expenditure is charged to income in the year it is incurred, unless it meets the recognition criteria of IAS 38 Intangible Assets |
Taxation | Taxation Taxation is that chargeable on the profits for the period, together with deferred taxation. The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group’s subsidiaries, associates and joint arrangements operate and generate taxable income. |
Deferred taxation | Deferred taxation is provided in full using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or deferred tax liability is settled. Tax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in the statement of other comprehensive income or the statement of changes in equity. The Group has exposures in respect of the payment or recovery of a number of taxes. Liabilities or assets for these payments or recoveries are recognised at such time as an outcome becomes probable and when the amount can reasonably be estimated. |
Goodwill | Goodwill Goodwill arising on acquisitions is capitalised and any impairment of goodwill is recognised immediately in the income statement and is not subsequently reversed. Goodwill in respect of subsidiaries is included in intangible assets. In respect of associates and joint ventures, goodwill is included in the carrying value of the investment in the associated company or joint venture. On disposal of a subsidiary, associate or joint venture, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. |
Intangible assets other than goodwill | Intangible assets other than goodwill The intangible assets shown on the Group balance sheet consist mainly of trademarks and similar intangibles, including certain intellectual property, acquired by the Group’s subsidiary undertakings and computer software. Acquired trademarks and similar assets are carried at cost less accumulated amortisation and impairment. Trademarks with indefinite lives are not amortised but are reviewed annually for impairment. Other trademarks and similar assets are amortised on a straight-line basis over their remaining useful lives, consistent with the pattern of economic benefits expected to be received, which do not exceed 20 years. Any impairments of trademarks are recognised in the income statement but increases in trademark values are not recognised. Computer software is carried at cost less accumulated amortisation and impairment, and, with the exception of global software solutions, is amortised on a straight-line basis over periods ranging from three years to five years. Global software solutions are software assets designed to be implemented on a global basis and used as a standard solution by all of the operating companies in the Group. These assets are amortised on a straight-line basis over periods not exceeding ten years. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight-line basis to write off the assets over their useful economic life. No depreciation is provided on freehold land or assets classified as held-for-sale. Freehold and leasehold property are depreciated at rates between 2.5% and 4% per annum, and plant and equipment at rates between 3% and 25% per annum. As noted above, with effect from 1 January 2018, cigarette-making machinery within this category is depreciated at 5% per annum (previously, between 3% and 7% per annum) as disclosed in note 3(b). |
Capitalised interest | Capitalised interest Borrowing costs which are directly attributable to the acquisition, construction or production of intangible assets or property, plant and equipment that takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of the asset. |
Leased assets | Leased assets Assets where the Group has substantially all the risks and rewards of ownership of the leased asset are classified as finance leases and are included as part of property, plant and equipment. Finance lease assets are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, then depreciated over the shorter of the lease term and their estimated useful lives. Leasing payments consist of capital and finance charge elements and the finance element is charged to the income statement. Rental payments under operating leases are charged to the income statement on a straight-line basis over the lease term. |
Impairment of non-financial assets | Impairment of non-financial assets Assets are reviewed for impairment whenever events indicate that the carrying amount of a cash-generating unit may not be recoverable. In addition, assets that have indefinite useful lives are tested annually for impairment. An impairment loss is recognised to the extent that the carrying value exceeds the higher of the asset’s fair value less costs to sell and its value in use. A cash-generating unit is the smallest identifiable group of assets that generates cash flows which are largely independent of the cash flows from other assets or groups of assets. At the acquisition date, any goodwill acquired is allocated to the relevant cash-generating unit or group of cash-generating units expected to benefit from the acquisition for the purpose of impairment testing of goodwill. |
Impairment of financial assets | Impairment of financial assets Financial assets are reviewed at each balance sheet date, or whenever events indicate that the carrying amount may not be recoverable. With effect from 1 January 2018, loss allowances for expected credit losses on financial assets which are held at amortised cost are recognised on initial recognition of the underlying asset. As permitted by IFRS 9, the loss allowance on trade receivables arising from the recognition of revenue under IFRS 15 are initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal to 12-month expected credit losses. Allowances are measured at an amount equal to the lifetime expected credit losses where the credit risk on the receivables increases significantly after initial recognition. Prior to 1 January 2018, financial assets were reviewed for impairment at each balance sheet date, or whenever events indicated that the carrying amount might not be recoverable. |
Inventories | Inventories Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average cost incurred in acquiring inventories and bringing them to their existing location and condition, which will include raw materials, direct labour and overheads, where appropriate. Net realisable value is the estimated selling price less costs to completion and sale. Tobacco inventories which have an operating cycle that exceeds 12 months are classified as current assets, consistent with recognised industry practice. |
Financial instruments | Financial instruments The Group’s business model for managing financial assets is set out in the Group Treasury Manual which notes that the primary objective with regard to the management of cash and investments is to protect against the loss of principal. Additionally, the Group aims: to maximise Group liquidity by concentrating cash at the Centre, to align the maturity profile of external investments with that of the forecast liquidity profile, to wherever practicable, match the interest rate profile of external investments to that of debt maturities or fixings, and to optimise the investment yield within the Group’s investment parameters. The majority of financial assets are held in order to collect contractual cash flows (typically cash and cash equivalents and loans and other receivables) but some assets (typically investments) are held for investment potential. Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the relevant instrument and derecognised when it ceases to be a party to such provisions. Such assets and liabilities are classified as current if they are expected to be realised or settled within 12 months after the balance sheet date. If not, they are classified as non-current. Non-derivative financial assets are classified on initial recognition in accordance with the Group’s business model as investments at fair value through profit and loss, investments at fair value through OCI, loans and receivables, or cash and cash equivalents and accounted for as follows: - Investments: These are non-derivative financial assets that cannot be classified as loans and receivables or cash and cash equivalents. Dividend and interest income on these investments are included within finance income when the Group’s right to receive payments is established. This category includes financial assets at fair value through profit and loss, financial assets at fair value through other comprehensive income and, prior to 1 January 2018, available-for-sale investments as defined by IAS 39. - Loans and other receivables: These are non-derivative financial assets with fixed or determinable payments that are solely payments of principal and interest on the principal amount outstanding, that are primarily held in order to collect contractual cash flows. These balances include trade and other receivables and are measured at amortised cost, using the effective interest rate method, and stated net of allowances for credit losses. Fair values for quoted investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established by using valuation techniques principally involving discounted cash flow analysis. Non-derivative financial liabilities , including borrowings and trade payables, are stated at amortised cost using the effective interest method. For borrowings, their carrying value includes accrued interest payable, as well as unamortised issue costs. As shown in note 20, certain borrowings are subject to fair value hedges, as defined below. Derivative financial assets and liabilities are initially recognised, and subsequently measured, at fair value, which includes accrued interest receivable and payable where relevant. Changes in their fair values are recognised as follows: - for derivatives that are designated as cash flow hedges, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where the hedged item results in a non-financial asset, the accumulated gains and losses, previously recognised in other comprehensive income, are included in the initial carrying value of the asset (basis adjustment) and recognised in the income statement in the same periods as the hedged item. Where the underlying transaction does not result in such an asset, the accumulated gains and losses are reclassified to the income statement in the same periods as the hedged item; - for derivatives that are designated as fair value hedges, the carrying value of the hedged item is adjusted for the fair value changes attributable to the risk being hedged, with the corresponding entry being made in the income statement. The changes in fair value of these derivatives are also recognised in the income statement; - for derivatives that are designated as hedges of net investments in foreign operations, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where non-derivatives such as foreign currency borrowings are designated as net investment hedges, the relevant exchange differences are similarly recognised. The accumulated gains and losses are reclassified to the income statement when the foreign operation is disposed of; and - for derivatives that do not qualify for hedge accounting or are not designated as hedges, the changes in their fair values are recognised in the income statement in the period in which they arise. These are referred to as “held-for-trading”. In order to qualify for hedge accounting, the Group is required to document prospectively the economic relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the economic relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is re-performed periodically to ensure that the hedge has remained, and is expected to remain, highly effective. Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry or disposal), or no longer qualifies for hedge accounting. Where the hedged item is a highly probable forecast transaction, the related gains and losses remain in equity until the transaction takes place, when they are reclassified to the income statement in the same manner as for cash flow hedges as described above. When a hedged future transaction is no longer expected to occur, any related gains and losses, previously recognised in other comprehensive income, are immediately reclassified to the income statement. Derivative fair value changes recognised in the income statement are either reflected in arriving at profit from operations (if the hedged item is similarly reflected) or in finance costs. All of the Group’s hedging relationships at the end of 2017 are considered to be continuing hedge relationships on the adoption of IFRS 9. The Group’s accounting policies for financial instruments prior to the adoption of IFRS 9 on 1 January 2018, were as set out above, except for the following: non-derivative financial assets were classified on initial recognition as available-for-sale investments, loans and receivables or cash and cash equivalents. Available-for-sale investments were non-derivative financial assets that could not be classified as loans and receivables or cash and cash equivalents. Apart from available-for-sale investments, non-derivative financial assets were stated at amortised cost using the effective interest method, subject to reduction for allowances for estimated irrecoverable amounts. These estimates for irrecoverable amounts were recognised when there was objective evidence that the full amount receivable would not be collected according to the original terms of the asset. Available-for-sale investments were stated at fair value, with changes in fair value being recognised directly in other comprehensive income. When such investments were derecognised (e.g. through disposal) or became impaired, the accumulated gains and losses, previously recognised in other comprehensive income, were reclassified to the income statement within ‘finance income’. Dividend and interest income on available-for-sale investments were included within ‘finance income’ when the Group’s right to receive payments was established. |
Dividends | Dividends Dividend |
Segmental analysis | Segmental analysis The Group is organised and managed on the basis of its geographic regions. These are the reportable segments for the Group as they form the focus of the Group’s internal reporting systems and are the basis used by the chief operating decision maker, identified as the Management Board, for assessing performance and allocating resources. The Group is primarily a single product business providing cigarettes and other tobacco products. While the Group has clearly differentiated brands, global segmentation between a wide portfolio of brands is not part of the regular internally reported financial information. The results of Next Generation Products are reported as part of the results of each geographic region, and are not currently material to the Group. The prices agreed between Group companies for intra-group sales of materials, manufactured goods, charges for royalties, commissions, services and fees, are based on normal commercial practices which would apply between independent businesses. Royalty income, less related expenditure, is included in the region in which the licensor is based. |
Adjusting items | Adjusting items are significant items of o The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance and are used to derive the Group’s principal non-GAAP measures of adjusted revenue, adjusted profit from operations, adjusted diluted earnings per share, operating cash flow conversion ratio and adjusted cash from operations, all of which are before the impact of adjusting items and which are reconciled from revenue, profit from operations, diluted earnings per share, cash conversion . |
Provisions | Provisions Provisions are recognised when either a legal or constructive obligation as a result of a past event exists at the balance sheet date, it is probable that an outflow of economic resources will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation. |
Contingent liabilities and contingent assets | Contingent liabilities and contingent assets Subsidiaries and associate companies are defendants in tobacco-related and other litigation. Provision for this litigation (including legal costs) is made at such time as an unfavourable outcome becomes probable and the amount can be reasonably estimated. Contingent assets are possible assets whose existence will only be confirmed by future events not wholly within the control of the entity and are not recognised as assets until the realisation of income is virtually certain. Where a provision has not been recognised, the Group records its external legal fees and other external defence costs for tobacco-related and other litigation as these costs are incurred. |
Repurchase of share capital | Repurchase of share capital When share capital is repurchased the amount of consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares which are not cancelled, or shares purchased for the employee share ownership trusts, are classified as treasury shares and presented as a deduction from total equity. |
Future changes to accounting policies | Future changes to accounting policies Certain changes to IFRS will be applicable to the Group financial statements in future years. Set out below are those which are considered to be most relevant to the Group. IFRS 16 Leases This Standard was finalised and published in January 2016 with a mandatory effective date of implementation of 1 January 2019. In adopting IFRS 16, the Group will apply the modified retrospective approach consistently across the Group, with no restatement of prior periods, as permitted by the Standard. On the initial implementation of the Standard, virtually all previously recognised operating leases will be capitalised as right-to-use assets and financial liabilities will be recognised at the same initial value. The Group will take advantage of certain practical expedients available under the Standard, including “grandfathering” previously recognised lease arrangements such that contracts will not be reassessed at the implementation date as to whether they are, or contain, a lease, and leases previously classified as finance leases under IAS 17 Leases Going forward, the Group will also adopt several practical expedients under the Standard including not applying the requirements of IFRS 16 to leases of intangible assets, applying the portfolio approach where appropriate to do so, and not applying the recognition and measurement requirements of IFRS 16 to short-term leases (leases of less than 12 months maximum duration) and to leases of low-value assets. Except for property-related leases, non-lease components will not be separated from lease components. The Group will continue to report recognised assets and liabilities under leases within property, plant and equipment and borrowings respectively rather than show these as separate line items on the face of the balance sheet. Had the Standard been applied to the 2018 results, profit for the year would have been £11 million lower and non-current assets and liabilities would have each been increased by £564 million at the start of the year. At the end of the year, non-current assets would have been increased by £551 million and non-current liabilities by £558 million. The anticipated impact of the new Standard to the Group’s balance sheet at 1 January 2019, and a reconciliation to reported leasing commitments, is shown in note 31. IFRIC 23 Uncertainty over Income Tax treatments. This interpretation was finalised and published in June 2017 with a mandatory effective date of implementation of 1 January 2019. The Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. In particular, the Interpretation addresses whether uncertain tax treatments should be considered separately or together with one or more other uncertain tax treatments, and addresses the assumptions an entity makes about how probable it is that a taxation authority will accept an uncertain tax treatment. The impact on the Group’s profit and equity is not expected to be material. Other interpretations and revisions In addition, a number of other interpretations and revisions to existing standards have been issued which will be applicable to the Group’s financial statements in future years, but will not have a material effect on reported profit or equity or on the disclosures in the financial statements. |
Segmental analyses (Tables)
Segmental analyses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reportable Segments [Abstract] | |
Disclosure of Revenue, Adjusted Revenue at Constant And Current Rates of Exchange | The following table shows 2018 revenue and adjusted revenue at current rates, and 2018 adjusted revenue translated using 2017 rates of exchange. The 2017 figures are stated at the 2017 rates of exchange. 2018 2017 Adjusted Revenue Constant rates £m Translation exchange £m Adjusted Revenue Current rates £m Adjusting items Current rates £m Revenue Current rates £m Adjusted Revenue £m Adjusting items £m Revenue £m United States 9,838 (343 ) 9,495 – 9,495 4,160 – 4,160 APME 5,250 (368 ) 4,882 – 4,882 4,973 – 4,973 AMSSA 4,560 (449 ) 4,111 – 4,111 4,323 – 4,323 ENA 6,112 (288 ) 5,824 180 6,004 5,850 258 6,108 Revenue 25,760 (1,448 ) 24,312 180 24,492 19,306 258 19,564 Note: adjusting items in revenue are in respect of excise included in goods acquired from a third party under short term arrangements and then passed on to customers. This is deemed as adjusting due to the distorting nature to revenue and operating margin. The following table shows 2017 revenue and adjusted revenue at current rates, and 2017 adjusted revenue translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange. 2017 2016 Adjusted Revenue Constant rates £m Translation exchange £m Adjusted Revenue Current rates £m Adjusting items Current rates £m Revenue Current rates £m Revenue £m United States 3,958 202 4,160 – 4,160 – APME 4,776 197 4,973 – 4,973 4,769 AMSSA 4,365 (42 ) 4,323 – 4,323 4,038 ENA 5,507 343 5,850 258 6,108 5,323 Revenue 18,606 700 19,306 258 19,564 14,130 Note: adjusting items in revenue are in respect of excise included in goods acquired from a third party under short term arrangements and then passed on to customers. This is deemed as adjusting due to the distorting nature to revenue and operating margin. |
Disclosure of Segment Results at Constant And Current Rates of Exchange | The following table shows 2018 profit from operations and adjusted profit from operations at current rates, and 2018 adjusted profit from operations translated using 2017 rates of exchange. The 2017 figures are stated at the 2017 rates. 2018 2017 Adjusted* segment result Constant rates £ m Translation exchange £ m Adjusted* segment result Current rates £ m Adjusting* items £ m Segment result Current rates £ m Adjusted* segment result £m Adjusting* items £m Segment result £m United States 4,686 (175 ) 4,511 (505 ) 4,006 1,928 (763 ) 1,165 APME 2,099 (151 ) 1,948 (90 ) 1,858 2,049 (147 ) 1,902 AMSSA 1,922 (184 ) 1,738 (194 ) 1,544 1,782 (134 ) 1,648 ENA 2,217 (67 ) 2,150 (245 ) 1,905 2,170 (473 ) 1,697 Profit from operations 10,924 (577 ) 10,347 (1,034 ) 9,313 7,929 (1,517 ) 6,412 Net finance costs (1,415 ) 30 (1,385 ) 4 (1,381 ) (889 ) (205 ) (1,094 ) United States – – – – – 624 23,195 23,819 APME 417 (33 ) 384 32 416 384 29 413 ENA 3 – 3 – 3 4 (27 ) (23 ) Share of post-tax results of associates and joint ventures 420 (33 ) 387 32 419 1,012 23,197 24,209 Profit/(loss) before taxation 9,929 (580 ) 9,349 (998 ) 8,351 8,052 21,475 29,527 Taxation (charge)/credit on ordinary activities (2,508 ) 144 (2,364 ) 223 (2,141 ) (2,091 ) 10,220 8,129 Profit for the year 6,210 37,656 * The adjustments to profit from operations, net finance costs and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(h), note 4(b), note 5(a), and note 6(b), 6(d) and 6(e), respectively. The following table shows 2017 profit from operations and adjusted profit from operations at current rates, and 2017 adjusted profit from operations translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange. 2017 2016 Adjusted* segment result Constant rates £m Translation exchange £m Adjusted* segment result Current rates £m Adjusting* items £m Segment result Current rates £m Adjusted* segment result £m Adjusting* items £m Segment result £m United States 1,827 101 1,928 (763 ) 1,165 – – – APME 1,962 87 2,049 (147 ) 1,902 1,972 (198 ) 1,774 AMSSA 1,799 (17 ) 1,782 (134 ) 1,648 1,684 (262 ) 1,422 ENA 2,017 153 2,170 (473 ) 1,697 1,824 (345 ) 1,479 7,605 324 7,929 (1,517 ) 6,412 5,480 (805 ) 4,675 Fox River** – – (20 ) (20 ) Profit from operations 7,605 324 7,929 (1,517 ) 6,412 5,480 (825 ) 4,655 Net finance (costs)/income (833 ) (56 ) (889 ) (205 ) (1,094 ) (529 ) (108 ) (637 ) United States 593 31 624 23,195 23,819 991 889 1,880 APME 354 30 384 29 413 333 11 344 AMSSA – – – – – – – – ENA 4 – 4 (27 ) (23 ) 3 – 3 Share of post-tax results of associates and joint ventures 951 61 1,012 23,197 24,209 1,327 900 2,227 Profit/(loss) before taxation 7,723 329 8,052 21,475 29,527 6,278 (33 ) 6,245 Taxation on ordinary activities (2,017 ) (74 ) (2,091 ) 10,220 8,129 (1,473 ) 67 (1,406 ) Profit for the year 37,656 4,839 * The adjustments to profit from operations, net finance (costs)/income and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(h), note 4(b), note 5(a) and note 6(b), 6(d) and 6(e) respectively. ** The Fox River charge in 2016 (see note 3(g) and note 28) has not been allocated to any segment as it neither relates to current operations nor the tobacco business. It has been presented separately from the segmental reporting which is used to evaluate segment performance and to allocate resources, and is reported to the chief operating decision maker on this basis. |
Summary of Depreciation Amortisation and Impairment Charges | Adjusted profit from operations at constant rates of £10,924 million (2017: £7,605 million; 2016: £5,197 million) excludes certain depreciation, amortisation and impairment charges as explained in notes 3(e),(f) and (3h). These are excluded from segmental profit from operations at constant rates as follows: 2018 2017 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m United States 158 (4 ) 154 289 443 59 116 175 APME 111 (6 ) 105 22 127 111 24 135 AMSSA 100 1 101 115 216 102 32 134 ENA 148 (5 ) 143 109 252 162 296 458 517 (14 ) 503 535 1,038 434 468 902 2017 2016 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m United States 57 2 59 116 175 – – – APME 109 2 111 24 135 114 52 166 AMSSA 99 3 102 32 134 121 48 169 ENA 153 9 162 296 458 160 112 272 418 16 434 468 902 395 212 607 |
Disclosure of Geographical Information of External Revenue and Non-Current Assets | External revenue and non-current assets other than financial instruments, deferred tax assets and retirement benefit assets are analysed between the UK and all foreign countries at current rates of exchange as follows: United Kingdom All foreign countries Group Revenue is based on location of sale 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m External revenue 184 203 266 24,308 19,361 13,864 24,492 19,564 14,130 United Kingdom All foreign countries Group 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Intangible assets 529 514 123,484 117,271 124,013 117,785 Property, plant and equipment 404 406 4,762 4,476 5,166 4,882 Investments in associates and joint ventures – – 1,737 1,577 1,737 1,577 |
Profit from operations (Tables)
Profit from operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Profit From Operations [Abstract] | |
Summary of Employee Benefit Costs | (a) Employee benefit costs 2018 £ m 2017 £m 2016 £m Wages and salaries 2,463 2,131 1,882 Social security costs 207 216 207 Other pension and retirement benefit costs (note 12) 212 215 101 Share-based payments – equity and cash-settled (note 25) 123 117 84 3,005 2,679 2,274 |
Summary of Depreciation Amortisation and Impairment Costs | (b) Depreciation, amortisation and impairment costs 2018 £ m 2017 £m 2016 £m Intangibles – amortisation and impairment of trademarks and similar intangibles (note 3(f)) 377 383 149 – amortisation and impairment of other intangibles 111 140 81 Property, plant and equipment – depreciation and impairment 550 379 377 1,038 902 607 |
Summary of Other Operating Expenses | (c) Other operating expenses include: 2018 £ m 2017 £m 2016 £m Research and development expenses (excluding employee benefit costs and depreciation) 105 80 53 Exchange differences (15 ) (6 ) (2 ) Hedge ineffectiveness within operating profit (8 ) – – Rent of plant and equipment (operating leases) – minimum lease payments 61 41 20 Rent of property (operating leases) – minimum lease payments 110 85 51 Auditor's remuneration Total expense for audit services pursuant to legislation: – fees to KPMG LLP for Parent Company and Group audit 6.3 6.3 2.0 – fees to KPMG LLP firms and associates for local statutory and Group reporting audits 8.8 11.3 7.2 Total audit fees expense – KPMG LLP firms and associates 15.1 17.6 9.2 Audit fees expense to other firms 0.2 0.2 – Total audit fees expense 15.3 17.8 9.2 Fees to KPMG LLP firms and associates for other services: – audit-related assurance services 9.4 8.0 0.2 – other assurance services 0.3 4.1 0.1 – tax advisory services – – 0.2 – tax compliance – 0.2 0.3 – audit of defined benefit schemes of the Company 0.4 – – – other non-audit services – – 1.4 10.1 12.3 2.2 |
Summary of Restructuring and Integration Costs | 2018 £ m 2017 £m 2016 £m Employee benefit costs 176 193 240 Depreciation, amortisation and impairment costs 48 85 64 Other operating expenses 145 330 325 Other operating income (6 ) (8 ) (26 ) 363 600 603 |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Finance Costs [Abstract] | |
Summary of Net Finance Costs/(Income) | (a) Net finance costs/(income) 2018 £m 2017 £m 2016 £m Interest expense 1,593 1,081 645 Facility fees 13 13 5 Interest related to adjusting tax payables (note 4(b)) 41 43 25 Loss on bond redemption (note 4(b)) – – 101 Acquisition of RAI (note 4(b)) – 153 – Fair value changes on derivative financial instruments and hedged items (154 ) (149 ) (458 ) Hedge ineffectiveness (note 4(b)) – 9 – Venezuela hyperinflation (note 4(b)) (45 ) – – Exchange differences on financial liabilities 36 47 363 Finance costs 1,484 1,197 681 Interest under the effective interest method (68 ) (83 ) (68 ) Dividend income – (1 ) – Hedge ineffectiveness (note 4(b)) – – (18 ) Exchange differences on financial assets (35 ) (19 ) 42 Finance income (103 ) (103 ) (44 ) Net finance costs 1,381 1,094 637 |
Associates and joint ventures (
Associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Associates And Joint Ventures [Abstract] | |
Schedule of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method | 2018 2017 2016 Total £m Group’s share £m Total £m Group’s share £m Total £m Group’s share £m Revenue 7,235 2,058 14,085 4,794 16,491 5,997 Profit from operations* 2,128 630 4,342 24,854 9,379 3,740 Net finance costs (8 ) (3 ) (279 ) (116 ) (477 ) (200 ) Profit on ordinary activities before taxation 2,120 627 4,063 24,738 8,902 3,540 Taxation on ordinary activities (678 ) (201 ) (1,441 ) (522 ) (3,280 ) (1,308 ) Profit on ordinary activities after taxation 1,442 426 2,622 24,216 5,622 2,232 Non-controlling interests (24 ) (7 ) (22 ) (7 ) (17 ) (5 ) Post-tax results of associates and joint ventures 1,418 419 2,600 24,209 5,605 2,227 Comprised of: – adjusted share of post-tax results of associates and joint ventures 1,308 387 2,785 1,012 3,461 1,327 – issue of shares and change in shareholding 75 22 98 29 36 11 – gain on deemed divestment of RAI – – – 23,288 – – – gain on disposal of assets – – – – 2,231 941 – other 35 10 (283 ) (120 ) (123 ) (52 ) 1,418 419 2,600 24,209 5,605 2,227 * The gain on deemed divestment of RAI is recognised in the Group’s share of associates profit from operations. |
Summary of Group's Share of the Result of Associates and Joint Ventures | The Group’s share of the results of associates and joint ventures is shown in the table below. 2018 2017 2016 Group’s share £m Group’s share £m Group’s share £m Profit on ordinary activities after taxation – attributable to owners of the Parent 419 24,209 2,227 Other comprehensive income: Items that may be reclassified to profit & loss (38 ) (918 ) 1,415 Items that will not be reclassified to profit & loss 6 25 20 Total comprehensive income 387 23,316 3,662 |
Summary of Financial Information of the Group's Associates and Joint Ventures | Summarised financial information of the Group’s associates and joint ventures is shown below. 2018 ITC £m Others £m Total £m Revenue 5,072 2,163 7,235 Profit on ordinary activities before taxation 2,059 61 2,120 Post-tax results of associates and joint ventures 1,373 45 1,418 Other comprehensive income (110 ) – (110 ) Total comprehensive income 1,263 45 1,308 2017 RAI* £m ITC £m Others £m Total £m Revenue 5,525 6,607 1,953 14,085 Profit on ordinary activities before taxation 2,017 2,054 (8 ) 4,063 Post-tax results of associates and joint ventures 1,261 1,362 (23 ) 2,600 Other comprehensive income (595 ) (135 ) (8 ) (738 ) Total comprehensive income 666 1,227 (31 ) 1,862 * The information presented above for RAI is for the period from 1 January 2017 up to and including 24 July 2017 (see note 24). 2016 RAI £m ITC £m Others £m Total £m Revenue 9,224 5,350 1,917 16,491 Profit on ordinary activities before taxation 7,111 1,743 48 8,902 Post-tax results of associates and joint ventures 4,457 1,114 34 5,605 Other comprehensive income 3,125 712 (178 ) 3,659 Total comprehensive income 7,582 1,826 (144 ) 9,264 |
Taxation on ordinary activiti_2
Taxation on ordinary activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Major Components Of Tax Expense Income [Abstract] | |
Summary of Taxation on Ordinary Activities | (a) Summary of taxation on ordinary activities 2018 £m 2017 £m 2016 £m Revised UK corporation tax 60 26 7 Comprising: – current year tax expense 66 26 7 – adjustments in respect of prior periods (6 ) - - Overseas tax 2,455 1,617 1,395 Comprising: – current year tax expense 2,460 1,615 1,382 – adjustments in respect of prior periods (5 ) 2 13 Total current tax 2,515 1,643 1,402 Deferred tax (374 ) (9,772 ) 4 Comprising: – deferred tax relating to origination and reversal of temporary differences (304 ) (152 ) 4 – deferred tax relating to changes in tax rates (70 ) (9,620 ) - 2,141 (8,129 ) 1,406 |
Summary of Factors Affecting Taxation Charge | The taxation charge differs from the standard 19% (2017: 19%; 2016: 20%) rate of corporation tax in the UK. The major causes of this difference are listed below: 2018 2017 2016 Revised £m % £m % £m % Profit before tax 8,351 29,527 6,245 Less: share of post-tax results of associates and joint ventures (see note 5) (419 ) (24,209 ) (2,227 ) 7,932 5,318 4,018 Tax at 19% (2017: 19%; 2016: 20%) on the above 1,507 19.0 1,010 19.0 804 20.0 Factors affecting the tax rate: Tax at standard rates other than UK corporation tax rate 384 4.8 389 7.3 93 2.3 Other national tax charges 204 2.6 119 2.2 74 1.9 Permanent differences 7 0.1 40 0.8 143 3.6 Overseas tax on distributions – – 25 0.5 41 1.0 Overseas withholding taxes 155 1.9 191 3.6 200 5.0 Double taxation relief on UK profits (35 ) (0.4 ) (29 ) (0.5 ) (8 ) (0.2 ) Unutilised/(utilised) tax losses 5 0.1 (38 ) (0.7 ) 32 0.8 Adjustments in respect of prior periods (11 ) (0.1 ) 2 0.0 13 0.3 Deferred tax relating to changes in tax rates (70 ) (0.9 ) (9,620 ) (180.9 ) – – Deemed US repatriation tax – – 34 0.6 – – Release of deferred tax on unremitted earnings of associates – – (180 ) (3.4 ) – – Additional net deferred tax (credits)/charges (5 ) (0.1 ) (72 ) (1.4 ) 14 0.3 0.0 0.0 2,141 27.0 (8,129 ) (152.9 ) 1,406 35.0 |
Summary of Tax on Items Recognised Directly in Other Comprehensive Income | (f) Tax on items recognised directly in other comprehensive income 2018 £m 2017 £m 2016 £m Current tax (8) (4 ) (53 ) Deferred tax (7) (133 ) 70 (Charged)/credited to other comprehensive income (15) (137 ) 17 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | 2018 2017 2016 Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Revised Revised Basic earnings per share (ordinary shares of 25p each) 6,032 2,285 264.0 37,485 2,044 1,833.9 4,648 1,858 250.2 Share options – 7 (0.8 ) – 7 (6.3 ) – 7 (1.0 ) Diluted earnings per share 6,032 2,292 263.2 37,485 2,051 1,827.6 4,648 1,865 249.2 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers |
Summary of Adjusted Earnings Per Share | Earnings have been affected by a number of adjusting items, which are described in notes 3 to 6. Adjusting items are significant items in the profit from operations, net finance costs, taxation and the Group’s share of the post-tax results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance. To illustrate the impact of these items, an adjusted earnings per share calculation is shown below. Basic 2018 2017 2016 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Basic earnings per share 6,032 264.0 37,485 1,833.9 4,648 250.2 Effect of restructuring and integration costs 3(e) 363 15.9 600 29.4 603 32.4 Tax and non-controlling interests on restructuring and integration costs (83 ) (3.6 ) (133 ) (6.5 ) (90 ) (4.9 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 377 16.5 383 18.7 149 8.0 Tax on amortisation and impairment of trademarks and similar intangibles (78 ) (3.4 ) (90 ) (4.4 ) (32 ) (1.7 ) Effect of associates' adjusting items net of tax 5(a) (32 ) (1.4 ) (23,197 ) (1,134.9 ) (900 ) (48.4 ) Effect of hyperinflation on Venezuela's retained earnings 3(h),4(b) 65 2.8 – – – – Other adjusting items 3(h) 184 8.0 534 26.1 53 2.9 Tax effect on other adjusting items (44 ) (1.9 ) (184 ) (8.9 ) (5 ) (0.3 ) Deferred tax relating to changes in tax rates 13 (79 ) (3.5 ) (9,586 ) (469.0 ) – – Release of deferred tax on unremitted earnings from associates 6(d) – – (180 ) (8.8 ) – – Effect of Fox River 3(g) – – – – 20 1.1 Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – – – 61 3.3 Effect of interest on FII GLO settlement and other 4(b) 41 1.8 43 2.1 25 1.3 Effect of retrospective guidance on WHT 6(d) 55 2.4 – – – – Effect of adjusting finance costs in relation to acquisition of RAI 4(b) – – 153 7.5 – – Tax Effect of adjusting finance costs in relation to acquisition of RAI – – (49 ) (2.4 ) – – Effect of hedge ineffectiveness 4(b) – – 9 0.4 (18 ) (1.0 ) Tax effect on hedge ineffectiveness – – (2 ) (0.1 ) – – Effect of US bond buy back 4(b) – – – – 101 5.5 Adjusted earnings per share (basic) 6,801 297.6 5,786 283.1 4,615 248.4 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers . Diluted 2018 2017 2016 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Diluted earnings per share 6,032 263.2 37,485 1,827.6 4,648 249.2 Effect of restructuring and integration costs 3(e) 363 15.8 600 29.3 603 32.3 Tax and non-controlling interests on restructuring and integration costs (83 ) (3.6 ) (133 ) (6.5 ) (90 ) (4.8 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 377 16.4 383 18.7 149 8.0 Tax on amortisation and impairment of trademarks and similar intangibles (78 ) (3.4 ) (90 ) (4.4 ) (32 ) (1.7 ) Effect of associates' adjusting items net of tax 5(a) (32 ) (1.4 ) (23,197 ) (1,131.0 ) (900 ) (48.3 ) Effect of hyperinflation on Venezuela's retained earnings 3(h),4(b) 65 2.8 – – – – – – – – Other adjusting items 3(h) 184 8.0 534 26.0 53 2.9 Tax effect on other adjusting items (44 ) (1.9 ) (184 ) (8.9 ) (5 ) (0.3 ) Deferred tax relating to changes in tax rates 13 (79 ) (3.4 ) (9,586 ) (467.4 ) – – Release of deferred tax on unremitted earnings from associates 6(d) – – (180 ) (8.8 ) – – Effect of Fox River 3(g) – – – – 20 1.1 Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – – – 61 3.3 Effect of interest on FII GLO settlement and other 4(b) 41 1.8 43 2.1 25 1.3 Effect of retrospective guidance on WHT 6(d) 55 2.4 – – – – Effect of adjusting finance costs in relation to acquisition of RAI 4(b) – – 153 7.5 – – Tax Effect of adjusting finance costs in relation to acquisition of RAI – – (49 ) (2.4 ) – – Effect of hedge ineffectiveness 4(b) – – 9 0.4 (18 ) (1.0 ) Tax effect on hedge ineffectiveness – – (2 ) (0.1 ) – – Effect of US bond buy back 4(b) – – – – 101 5.5 Adjusted earnings per share (diluted) 6,801 296.7 5,786 282.1 4,615 247.5 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers . |
Summary of Headline Earnings Per Share | The presentation of headline earnings per share, as an alternative measure of earnings per share, is mandated under the JSE Listing Requirements. It is calculated in accordance with Circular 4/2018 ‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants. Basic 2018 2017 2016 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Basic earnings per share 6,032 264.0 37,485 1,833.9 4,648 250.2 Effect of impairment of intangibles, property, plant and equipment and assets held-for-sale 238 10.3 179 8.7 126 6.8 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (65 ) (2.8 ) (35 ) (1.7 ) (35 ) (1.9 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (11 ) (0.5 ) (48 ) (2.3 ) (59 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 4 0.2 13 0.6 30 1.6 Effect of gains on disposal of businesses, non-current investments and brands (10 ) (0.4 ) – – – – Tax on gains on disposal of businesses, non-current investments and brands 2 0.1 – – – – Gain on deemed disposal of RAI associate – – (23,288 ) (1,139.3 ) – – Write-off of investment in associate – – 27 1.3 – – Share of associates' gains on disposal of assets – – – – (941 ) (50.6 ) Tax effect of associates' disposal of assets – – – – 61 3.3 Issue of shares and change in shareholding in associate (22 ) (1.0 ) (29 ) (1.4 ) (11 ) (0.6 ) Headline earnings per share (basic) 6,168 269.9 14,304 699.8 3,819 205.6 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers The Group has revised 2017, as explained in notes 1 and 31. Diluted 2018 2017 2016 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Revised Revised Diluted earnings per share 6,032 263.2 37,485 1,827.6 4,648 249.2 Effect of impairment of intangibles, property, plant and equipment and assets held-for-sale 238 10.3 179 8.6 126 6.8 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (65 ) (2.8 ) (35 ) (1.7 ) (35 ) (1.9 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (11 ) (0.5 ) (48 ) (2.3 ) (59 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 4 0.2 13 0.6 30 1.6 Effect of gains on disposal of businesses, non-current investments and brands (10 ) (0.4 ) – – – – Tax on gains on disposal of businesses, non-current investments and brands 2 0.1 – – – – Gain on deemed disposal of RAI associate – – (23,288 ) (1,135.4 ) – – Write-off of investment in associate – – 27 1.3 – – Share of associates' gains on disposal of assets – – – – (941 ) (50.4 ) Tax effect of associates' disposal of assets – – – – 61 3.3 Issue of shares and change in shareholding in associate (22 ) (1.0 ) (29 ) (1.4 ) (11 ) (0.6 ) Headline earnings per share (diluted) 6,168 269.1 14,304 697.3 3,819 204.8 With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue from Contracts with Customers The Group has revised 2017, as explained in notes 1 and 31. |
Dividends and other appropria_2
Dividends and other appropriations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Dividends [Abstract] | |
Summary of Detailed Information About Dividends | 2018 2017 2016 Dividends paid to owners of the parent Pence per share £m Pence per share £m Pence per share £m Ordinary shares Interim 2018 paid 15 November 2018 48.8 1,114 2018 paid 8 August 2018 48.8 1,118 2018 paid 9 May 2018 48.8 1,111 2017 paid 8 February 2018 43.6 1,004 2017 paid 28 September 2017 56.5 1,284 2016 paid 28 September 2016 51.3 961 Final 2016 paid 4 May 2017 118.1 2,181 2015 paid 5 May 2016 104.6 1,949 190.0 4,347 174.6 3,465 155.9 2,910 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Intangible Assets [Abstract] | |
Schedule of Movement In Intangible Assets | 2018 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 44,147 1,119 74,136 71 119,473 Accumulated amortisation and impairment (672 ) (1,016 ) (1,688 ) Net book value at 1 January 44,147 447 73,120 71 117,785 Differences on exchange 2,024 – 4,483 6,507 Additions – internal development – – – 120 120 – acquisitions (note 24) 14 – 13 – 27 – separately acquired – – 62 – 62 Reallocations (22 ) 58 30 (66 ) – Amortisation charge – (102 ) (342 ) – (444 ) Impairment – – (44 ) – (44 ) 31 December Cost 46,163 1,101 78,736 125 126,125 Accumulated amortisation and impairment (698 ) (1,414 ) (2,112 ) Net book value at 31 December 46,163 403 77,322 125 124,013 2017 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 11,023 1,054 1,255 60 13,392 Accumulated amortisation and impairment (616 ) (659 ) (1,275 ) Net book value at 1 January 11,023 438 596 60 12,117 Differences on exchange (1,189 ) (3 ) (2,669 ) – (3,861 ) Additions – internal development – – – 87 87 – acquisitions (note 24) 34,313 33 75,488 4 109,838 – separately acquired – 29 98 – 127 Reallocations – 80 – (80 ) – Amortisation charge – (88 ) (268 ) – (356 ) Impairment – (42 ) (125 ) – (167 ) 31 December Cost 44,147 1,119 74,136 71 119,473 Accumulated amortisation and impairment (672 ) (1,016 ) (1,688 ) Net book value at 31 December 44,147 447 73,120 71 117,785 |
Schedule of Cash Generating Unit | 2018 2017 Carrying amount £m Pre-tax discount rate % Carrying amount £m Pre-tax discount rate % Cash Generating Unit RAI 35,117 7.7 33,062 7.7 Canada 2,307 7.5 2,367 7.5 Europe 5,069 7.5 5,013 7.3 / 8.1 South Africa 605 10.6 661 9.6 Australia 740 7.9 775 7.9 Singapore 615 6.6 591 6.6 Malaysia 448 8.2 431 8.3 Other 1,262 1,247 Total 46,163 44,147 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | 2018 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 1,455 267 5,552 917 8,191 Accumulated depreciation and impairment (369 ) (124 ) (2,816 ) (3,309 ) Net book value at 1 January 1,086 143 2,736 917 4,882 Differences on exchange 76 4 27 (5 ) 102 Additions – separately acquired 5 1 41 722 769 Reallocations 58 2 466 (526 ) - Depreciation (34 ) (11 ) (318 ) (363 ) Impairment (74 ) – (120 ) (194 ) Disposals (13 ) – (17 ) (30 ) 31 December Cost 1,515 268 5,763 1,108 8,654 Accumulated depreciation and impairment (411 ) (129 ) (2,948 ) (3,488 ) Net book value at 31 December 1,104 139 2,815 1,108 5,166 In 2018, the differences on exchange include £149 million of indexation in respect of the operations in Venezuela. However, management believes that such a revaluation is not reflective of the fair value of assets in Venezuela and an impairment charge of £110 million has been recognised, as explained in note 3(h). 2017 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 1,163 239 5,022 725 7,149 Accumulated depreciation and impairment (360 ) (116 ) (2,991 ) (21 ) (3,488 ) Net book value at 1 January 803 123 2,031 704 3,661 Differences on exchange (33 ) (11 ) (117 ) (49 ) (210 ) Additions – acquisitions (note 24) 349 4 626 62 1,041 – separately acquired 23 – 47 753 823 Reallocations (5 ) 35 523 (553 ) – Depreciation (29 ) (7 ) (352 ) (388 ) Impairment (1 ) (1 ) (10 ) (12 ) Disposals (4 ) – (12 ) (16 ) Net reclassifications as held-for-sale (17 ) – – (17 ) 31 December Cost 1,455 267 5,552 917 8,191 Accumulated depreciation and impairment (369 ) (124 ) (2,816 ) (3,309 ) Net book value at 31 December 1,086 143 2,736 917 4,882 |
Schedule of Cost of Freehold Land, Net Book Value of Leasehold Properties and Contracts Placed for Future Expenditure | 2018 £m 2017 £m Cost of freehold land within freehold property on which no depreciation is provided 255 253 Leasehold property comprises – net book value of long leasehold 100 104 – net book value of short leasehold 46 39 146 143 Contracts placed for future expenditure 141 85 |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |
Summary of Investments In Associates And Joint Ventures | 2018 £m 2017 £m 1 January 1,577 9,507 Total comprehensive income (note 5) 387 23,316 Dividends (211 ) (688 ) Additions – 13 Reclassification of Reynolds American Inc. (RAI) – (30,521 ) Other equity movements (16 ) (50 ) 31 December 1,737 1,577 Non-current assets 1,225 1,127 Current assets 953 1,019 Non-current liabilities (71 ) (67 ) Current liabilities (370 ) (502 ) 1,737 1,577 ITC Ltd. (Group's share of the market value is £11,465 million (2017: £11,036 million)) 1,682 1,527 Other listed associates (Group's share of the market value is £183 million (2017: £184 million)) 20 18 Unlisted associates 35 32 1,737 1,577 |
ITC Ltd. | |
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |
Summary of Latest Published Information | 2018 £m 2017 £m Non-current assets 4,106 3,738 Current assets 2,823 3,089 Non-current liabilities (238 ) (240 ) Current liabilities (1,002 ) (1,446 ) 5,689 5,141 Group's share of ITC Ltd. (2018: 29.57%; 2017: 29.71%) 1,682 1,527 |
Retirement Benefit Schemes (Tab
Retirement Benefit Schemes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Defined Benefit Plans [Abstract] | |
Schedule of Defined Benefit Amounts Recognised in Balance Sheets | The amounts recognised in the balance sheet are determined as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Present value of funded scheme liabilities (11,031 ) (11,542 ) (286 ) (326 ) (11,317 ) (11,868 ) Fair value of funded scheme assets 11,747 12,157 178 193 11,925 12,350 716 615 (108 ) (133 ) 608 482 Unrecognised funded scheme surpluses (20 ) (23 ) – – (20 ) (23 ) 696 592 (108 ) (133 ) 588 459 Present value of unfunded scheme liabilities (531 ) (535 ) (575 ) (622 ) (1,106 ) (1,157 ) 165 57 (683 ) (755 ) (518 ) (698 ) The above net asset/(liability) is recognised in the balance sheet as follows: – retirement benefit scheme liabilities (982 ) (1,065 ) (683 ) (756 ) (1,665 ) (1,821 ) – retirement benefit scheme assets 1,147 1,122 – 1 1,147 1,123 165 57 (683 ) (755 ) (518 ) (698 ) The net liabilities of funded pension schemes by territory are as follows: Liabilities Assets Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m – USA (4,835 ) (5,022 ) 4,464 4,640 (371 ) (382 ) – UK (2,962 ) (3,133 ) 4,016 4,119 1,054 986 – Germany (949 ) (998 ) 948 945 (1 ) (53 ) – Canada (694 ) (782 ) 708 779 14 (3 ) – Netherlands (782 ) (769 ) 793 819 11 50 – Switzerland (326 ) (330 ) 283 285 (43 ) (45 ) – Rest of Group (483 ) (508 ) 535 570 52 62 Funded schemes (11,031 ) (11,542 ) 11,747 12,157 716 615 The movements in funded scheme assets are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Fair value of scheme assets at 1 January 12,157 7,264 193 14 12,350 7,278 Differences on exchange 262 (170 ) 8 (7 ) 270 (177 ) Settlements (10 ) (1 ) – – (10 ) (1 ) Interest on scheme assets 362 277 8 4 370 281 Company contributions 176 232 45 22 221 254 Contributions by scheme members – 4 – – – 4 Benefits paid (684 ) (509 ) (61 ) (25 ) (745 ) (534 ) Acquisition of subsidiaries – 4,574 – 180 – 4,754 Actuarial gains/(losses) (516 ) 486 (15 ) 5 (531 ) 491 Fair value of scheme assets at 31 December 11,747 12,157 178 193 11,925 12,350 Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Equities ‒ listed 1,133 2,444 5 6 1,138 2,450 Equities ‒ unlisted 930 1,337 59 71 989 1,408 Bonds ‒ listed 5,925 5,272 11 14 5,936 5,286 Bonds ‒ unlisted 1,672 1,346 84 84 1,756 1,430 Other assets ‒ listed 618 682 10 9 628 691 Other assets ‒ unlisted 1,469 1,076 9 9 1,478 1,085 Fair value of scheme assets at 31 December 11,747 12,157 178 193 11,925 12,350 |
Schedule of Defined Benefit Amounts Recognised in Income Statement | The amounts recognised in the income statement are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Defined benefit schemes Service cost – current service cost 95 104 2 – 97 104 – past service cost/(credit), curtailments and settlements – 11 (1 ) – (1 ) 11 Net interest on the net defined benefit liability – interest on scheme liabilities 364 291 33 19 397 310 – interest on scheme assets (362 ) (276 ) (8 ) (4 ) (370 ) (280 ) – interest on unrecognised funded scheme surpluses 2 2 – – 2 2 99 132 26 15 125 147 Defined contribution schemes 87 68 – – 87 68 Total amount recognised in the income statement (note 3(a)) 186 200 26 15 212 215 The movements in scheme liabilities are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Present value at 1 January 12,077 7,510 948 120 13,025 7,630 Differences on exchange 295 (199 ) 43 (35 ) 338 (234 ) Current service cost 95 105 2 2 97 107 Past service cost/(credit) – 4 – – – 4 Settlements (10 ) 7 (1 ) – (11 ) 7 Interest on scheme liabilities 364 292 33 19 397 311 Contributions by scheme members 2 3 – – 2 3 Benefits paid (694 ) (523 ) (62 ) (31 ) (756 ) (554 ) Acquisition of subsidiaries – 5,211 – 882 – 6,093 Actuarial (gains)/losses – arising from changes in demographic assumptions (12 ) (418 ) (4 ) (8 ) (16 ) (426 ) – arising from changes in financial assumptions (547 ) 92 (49 ) 9 (596 ) 101 Experience gains (8 ) (7 ) (49 ) (10 ) (57 ) (17 ) Present value at 31 December 11,562 12,077 861 948 12,423 13,025 Scheme liabilities by scheme membership: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2018 £m 2017 £m 2018 £m 2017 £m Active members 1,785 1,928 55 69 1,840 1,997 Deferred members 1,259 1,394 2 3 1,261 1,397 Retired members 8,518 8,755 804 876 9,322 9,631 Present value at 31 December 11,562 12,077 861 948 12,423 13,025 |
Disclosure - Retirement Benefit Schemes - Summary of Movements in the Unrecognised Scheme Surpluses Recognised in Other Comprehensive Income | The movements in the unrecognised scheme surpluses, recognised in other comprehensive income, are as follows: Pension schemes Healthcare schemes Total 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m 2018 £m 2017 £m 2016 £m Unrecognised funded scheme surpluses at 1 January (23 ) (18 ) (11 ) – – – (23 ) (18 ) (11 ) Differences on exchange 1 3 (4 ) – – – 1 3 (4 ) Interest on unrecognised funded scheme surpluses (2 ) (2 ) (2 ) – – – (2 ) (2 ) (2 ) Movement in year (note 19) 4 (6 ) (1 ) – – – 4 (6 ) (1 ) Unrecognised funded scheme surpluses at 31 December (20 ) (23 ) (18 ) – – – (20 ) (23 ) (18 ) |
Disclosure - Retirement Benefit Schemes - Summary of Actuarial Assumptions Rate for Valuations Plans | The principal actuarial assumptions (weighted to reflect individual scheme differences) used in the following principal countries are shown below. In both years, discount rates are determined by reference to normal yields on high quality corporate bonds at the balance sheet date. For countries where there is not a deep market in such corporate bonds, the yield on government bonds is used. 2018 2017 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Rate of increase in salaries (%) 3.9 3.2 1.7 3.0 2.1 1.3 3.9 3.2 2.5 3.0 2.0 1.3 Rate of increase in pensions in payment (%) 2.5 3.2 1.1 Nil 1.1 Nil 2.5 3.2 1.8 Nil 1.2 Nil Rate of increase in deferred pensions (%) – 2.2 1.1 Nil 1.1 – – 2.2 1.8 Nil 1.2 – Discount rate (%) 4.3 2.9 1.3 3.8 1.8 0.9 3.7 2.5 1.9 3.3 2.0 0.6 General inflation (%) 2.5 3.2 1.1 2.0 2.0 1.1 2.5 3.2 1.8 2.0 2.0 1.0 2018 2017 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Weighted average duration of liabilities (years) 10.8 16.0 8.2 10.5 17.5 12.8 11.3 16.9 13.7 11.0 17.8 13.5 Mortality assumptions are subject to regular review. The principal schemes used the following tables at year-end: USA RP-2018 mortality tables without collar or amounts adjusted projected with MP-2018 generational projection (2017: RP-2017 and MP-2017) UK S2PA (YOB) with the CMI (2017) improvement model with a 1.25% long term improvement rate (2017: CMI (2016)) Germany RT Heubeck 2018 G (2017: Heubeck 2005 G) Canada CPM-2014 Private Table (both years) Netherlands AG Prognosetafel 2018 (2017: AG Prognosetafel 2016) Switzerland LPP/BVG 2015 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate (both years) Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows: USA UK Germany Canada Netherlands Switzerland Male Female Male Female Male Female Male Female Male Female Male Female 31 December 2018 Member age 65 (current life expectancy) 20.7 22.7 22.6 24.1 17.0 20.6 21.5 23.9 20.8 24.5 21.8 23.8 Member age 45 (life expectancy at age 65) 22.3 24.2 24.2 25.4 19.8 22.8 22.5 24.8 23.1 26.5 23.6 25.6 31 December 2017 Member age 65 (current life expectancy) 20.7 22.7 22.7 24.2 19.3 23.3 21.4 23.8 20.8 24.8 21.7 23.7 Member age 45 (life expectancy at age 65) 22.3 24.2 24.3 25.5 21.9 25.8 22.5 24.8 23.3 27.0 23.5 25.5 The valuation of retirement benefit schemes involves judgements about uncertain future events. Sensitivities in respect of the key assumptions used to measure the principal pension schemes as at 31 December 2018 are set out below. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation, with the exception of the sensitivity to inflation which incorporates the impact of certain correlating assumptions such as salary increases. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation, while asset values also change, and the impacts may offset to some extent. 1 year increase £m 1 year decrease £m 0.25 percentage point increase £m 0.25 percentage point decrease £m Average life expectancy – increase/(decrease) of scheme liabilities 339 (340 ) Rate of inflation – increase/(decrease) of scheme liabilities 169 (159 ) Discount rate – (decrease)/increase of scheme liabilities (267 ) 286 |
Deferred tax (Tables)
Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract] | |
Summary of Reconciliation of Net Deferred Tax Assets/(Liabilities) | Net deferred tax assets/(liabilities) comprise: Stock relief £m Excess of capital allowances over depreciation £m Tax losses £m Undistributed earnings of associates and subsidiaries £m Retirement benefits £m Trademarks £m Other temporary differences £m Total £m At 31 December 2017 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 656 (16,796 ) Accounting policy change (IFRS 9) (note 31) – – – – – – 7 7 At 1 January 2018 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 663 (16,789 ) Differences on exchange (7 ) (10 ) 4 6 15 (1,066 ) 47 (1,011 ) Subsidiaries acquired (note 24) – – – – – (3 ) 4 1 Credited/(charged) to the income statement 27 (16 ) (11 ) (46 ) (36 ) 67 319 304 Credited/(charged) relating to changes in tax rates 1 (10 ) (1 ) – 4 79 (3 ) 70 (Charged)/credited to other comprehensive income – – – – (25 ) – 18 (7 ) At 31 December 2018 (70 ) (210 ) 105 (281 ) 222 (18,246 ) 1,048 (17,432 ) Revised At 1 January 2017 31 (58 ) 89 (392 ) 117 (95 ) 92 (216 ) Differences on exchange 2 15 (6 ) 13 (12 ) 862 (22 ) 852 Subsidiaries acquired (note 24) (375 ) (234 ) – – 514 (28,091 ) 1,115 (27,071 ) Credited/(charged) to the income statement 180 19 30 138 10 66 (291 ) 152 Credited/(charged) relating to changes in tax rates 71 84 – – (194 ) 9,935 (276 ) 9,620 (Charged)/credited to other comprehensive income – – – – (171 ) – 38 (133 ) At 31 December 2017 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 656 (16,796 ) |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Receivables [Abstract] | |
Summary of trade and other receivables | 2018 £m 2017 £m Trade receivables 2,868 3,306 Loans and other receivables 1,082 1,214 Prepayments and accrued income 323 289 4,273 4,809 Current 3,588 4,053 Non-current 685 756 4,273 4,809 |
Summary of trade and other receivables reported in balance sheet net of allowances | Trade and other receivables have been reported in the balance sheet net of allowances as follows: 2018 £m 2017 £m Trade receivables - gross 2,898 3,345 Trade receivables - allowance (30 ) (39 ) Loans and other receivables - gross 1,092 1,260 Loans and other receivables - allowance (10 ) (46 ) Prepayments and accrued income 323 289 Net trade and other receivables per balance sheet 4,273 4,809 |
Summary of movements in allowance account | The movements in the allowance account are as follows: Trade receivables Loans and other receivables Total Trade receivables Loans and other receivables Total 2018 £m 2018 £m 2018 £m 2017 £m 2017 £m 2017 £m 1 January 39 46 85 87 - 87 Accounting policy change (IFRS 9) (notes 1 and 31) 37 8 45 - - - Revised 1 January 76 54 130 87 - 87 Differences on exchange 2 - 2 4 - 4 Provided in the year 16 10 26 - 46 46 Released (64 ) (54 ) (118 ) (52 ) - (52 ) 31 December 30 10 40 39 46 85 |
Investments Held at Fair Value
Investments Held at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Investments Held At Fair Value [Abstract] | |
Schedule of Available-for-sale Investments | Investments Fair value through P&L Fair value through OCI Available-for-sale Total Available-for-sale investments 2018 £m 2017 £m 31 December 107 107 58 Accounting policy change (IFRS 9) (note 31) 237 16 (107 ) 146 - 1 January 237 16 - 253 58 Differences on exchange (53 ) - - (53 ) - Additions 278 4 - 282 90 Revaluations 36 - - 36 (27 ) Disposals (285 ) (16 ) - (301 ) (14 ) 31 December 213 4 - 217 107 Current 178 - - 178 65 Non-current 35 4 - 39 42 213 4 - 217 107 2018 £m 2017 £m Functional currency 212 107 US dollar - - Euro - - Other currency 5 - 217 107 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Summary of derivatives | 2018 2017 Assets £m Liabilities £m Assets £m Liabilities £m Fair value hedges – interest rate swaps 181 83 97 14 – cross-currency swaps 282 - 263 – Cash flow hedges – interest rate swaps - 98 1 – – cross-currency swaps 149 56 187 – – forward foreign currency contracts 61 42 82 73 Net investment hedges – forward foreign currency contracts 10 174 85 39 Held-for-trading* – interest rate swaps 6 - 68 77 – forward foreign currency contracts 46 63 35 31 Total 735 516 818 234 Current 179 302 228 155 Non-current 556 214 590 79 735 516 818 234 Derivatives – in respect of net debt 647 269 640 117 – other 88 247 178 117 735 516 818 234 * Derivatives which do not meet the tests for hedge accounting under IFRS 9 (previously under IAS 39) or which are not designated as hedging instruments are referred to as “held-for-trading”. These derivatives principally consist of forward foreign currency contracts which have not been designated as hedges due to their value changes offsetting with other components of net finance costs relating to financial assets and financial liabilities. The Group do not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes. |
Summary of maturity dates of derivative financial instruments | The maturity dates of all gross-settled derivative financial instruments are as follows: 2018 2017 Assets Liabilities Assets Liabilities Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Within one year – forward foreign currency contracts 7,081 (6,526 ) 9,876 (9,749 ) 8,874 (8,702 ) 5,929 (6,059 ) – cross-currency swaps 55 (54 ) 33 (92 ) 56 (97 ) - - Between one and two years – forward foreign currency contracts 332 (330 ) 449 (441 ) 339 (328 ) 229 (230 ) – cross-currency swaps 36 (43 ) 20 (73 ) 89 (135 ) – – Between two and three years – cross-currency swaps 830 (771 ) 1,008 (1,075 ) 60 (108 ) – – Between three and four years – cross-currency swaps 15 (26 ) 17 (38 ) 1,812 (1,782 ) – – Between four and five years – cross-currency swaps 733 (592 ) 690 (730 ) 32 (62 ) – – Beyond five years – cross-currency swaps 754 (625 ) 469 (490 ) 2,623 (2,366 ) – – 9,836 (8,967 ) 12,562 (12,688 ) 13,885 (13,580 ) 6,158 (6,289 ) |
Summary of items designated as hedging instruments | The items designated as hedging instruments are as follows: 2018 Nominal amount Changes in fair of hedging value used for instrument calculating hedge ineffectiveness for 2018 £m £m Interest rate risk exposure: Fair value hedges – interest rate swaps 4,470 11 – cross-currency swaps 1,561 19 Cash flow hedges – interest rate swaps 2,715 (98 ) – cross-currency swaps 2,856 (91 ) Foreign currency risk exposure: Cash flow hedges – forward foreign currency contracts 3,574 (4 ) Net investment hedges (derivative related) – forward foreign currency contracts 5,291 (166 ) Net investment hedges (non-derivative related) – debt (carrying value) in borrowings designated as net investment hedges of net assets 4,647 (226 ) |
Net-settled Derivative Financial Instruments | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Summary of maturity dates of derivative financial instruments | The maturity dates of net-settled derivative financial instruments, which primarily relate to interest rate swaps, are as follows: 2018 2017 Assets Inflow £m Liabilities Outflow £m Assets Inflow £m Liabilities Outflow £m Within one year 53 40 44 18 Between one and two years 48 19 34 5 Between two and three years 45 15 28 6 Between three and four years 26 13 26 6 Between four and five years 23 15 12 7 Beyond five years 15 23 28 51 210 125 172 93 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Classes Of Inventories [Abstract] | |
Inventories | 17 Inventories 2018 £m 2017 £m Raw materials and consumables 3,049 3,027 Finished goods and work in progress 2,877 2,692 Goods purchased for resale 103 145 6,029 5,864 Inventories pledged as security for liabilities amount to £7 million (2017: £7 million). Write-offs taken to other operating expenses in the Group income statement comprise £148 million (2017: £114 million; 2016: £127 million), including amounts relating to restructuring costs. 2018 £m 2017 £m Raw materials and consumables 3,049 3,027 Finished goods and work in progress 2,877 2,692 Goods purchased for resale 103 145 6,029 5,864 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 18 Cash and cash equivalents 2018 £m 2017 £m Cash and bank balances 2,069 1,967 Cash equivalents 533 1,324 2,602 3,291 The carrying value of cash and cash equivalents approximates their fair value. Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: 2018 £m 2017 £m Functional currency 2,144 2,842 US dollar 158 161 Euro 174 159 Other currency 126 129 2,602 3,291 In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows: 2018 £m 2017 £m Cash and cash equivalents as above 2,602 3,291 Less overdrafts and accrued interest (274 ) (469 ) Net cash and cash equivalents 2,328 2,822 Cash and cash equivalents include restricted amounts of £170 million (2017: £160 million), principally due to exchange control regulations in certain countries. Cash and cash equivalents also include £125 million (2017: £12 million) of cash that is held as a hedging instrument. 2018 £m 2017 £m Cash and bank balances 2,069 1,967 Cash equivalents 533 1,324 2,602 3,291 |
Summary of Cash and Cash Equivalents Denominated in the Functional Currency of the Subsidiary Undertaking or Other Currencies | Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: 2018 £m 2017 £m Functional currency 2,144 2,842 US dollar 158 161 Euro 174 159 Other currency 126 129 2,602 3,291 |
Summary of Net Cash and Cash Equivalents Shown After Deducting Bank Overdrafts and Accrued Interest | In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows: 2018 £m 2017 £m Cash and cash equivalents as above 2,602 3,291 Less overdrafts and accrued interest (274 ) (469 ) Net cash and cash equivalents 2,328 2,822 |
Capital and reserves - reconc_2
Capital and reserves - reconciliation of movement in total equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Abstract] | |
Summary of Capital and Reserves - Reconciliation of Movement in Total Equity | Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 31 December 2017 614 26,602 (3,392 ) 36,935 60,759 222 60,981 Accounting policy change (IFRS 9) (note 31) – – (9 ) (29 ) (38 ) – (38 ) Revised 1 January 2018 614 26,602 (3,401 ) 36,906 60,721 222 60,943 Comprehensive income and expense Profit for the year – – – 6,032 6,032 178 6,210 Differences on exchange – – 3,861 – 3,861 7 3,868 Cash flow hedges – net fair value losses – – (58 ) – (58 ) – (58 ) – reclassified and reported in profit for the year – – 17 – 17 – 17 Investments held at fair value – reclassified and reported in retained earnings – – (8 ) 8 – – – Net investment hedges – net fair value losses – – (472 ) – (472 ) – (472 ) – differences on exchange on borrowings – – (236 ) – (236 ) – (236 ) Associates – – – (38 ) – (38 ) – (38 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 18 – 18 – 18 Retirement benefit schemes – net actuarial gains (note 12) – – – 138 138 – 138 – surplus recognition and minimum funding obligations – – – 4 4 – 4 (note 12) Associates – – – 6 – 6 – 6 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (33 ) (33 ) – (33 ) Cash flow hedges reclassified and reported in total assets – – (22 ) – (22 ) – (22 ) Other changes in equity Employee share options – value of employee services – – – 121 121 – 121 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares (note 8) – – – (4,463 ) (4,463 ) – (4,463 ) – to non-controlling interests – – – – – (163 ) (163 ) Purchase of own shares – held in employee share ownership trusts – – – (139 ) (139 ) – (139 ) Non-controlling interests – acquisitions (note 24(c)) – – – (11 ) (11 ) – (11 ) Other movements – – – (6 ) (6 ) – (6 ) 31 December 2018 614 26,606 (333 ) 38,557 65,444 244 65,688 Attributable to owners of the parent Revised Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2017 507 3,931 413 3,331 8,182 224 8,406 Comprehensive income and expense Profit for the year – – – 37,485 37,485 171 37,656 Differences on exchange – – (3,082 ) – (3,082 ) (2 ) (3,084 ) Cash flow hedges – net fair value losses – – (263 ) – (263 ) (1 ) (264 ) – reclassified and reported in profit for the year – – 109 – 109 – 109 – reclassified and reported in total assets – – (16 ) – (16 ) – (16 ) Investments held at fair value – net fair value losses – – (27 ) – (27 ) – (27 ) Net investment hedges – net fair value gains – – 425 – 425 – 425 – differences on exchange on borrowings – – (67 ) – (67 ) (1 ) (68 ) Associates – – – (918 ) – (918 ) – (918 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 34 – 34 – 34 Retirement benefit schemes – – – net actuarial gains (note 12) – – – 832 832 1 833 – surplus recognition and minimum funding obligations – – – (5 ) (5 ) (1 ) (6 ) (note 12) Associates – – – – 25 25 – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (171 ) (171 ) – (171 ) Other changes in equity Employee share options – value of employee services – – – 105 105 – 105 – proceeds from shares issued – 5 – – 5 – 5 Dividends and other appropriations – ordinary shares – – – (4,465 ) (4,465 ) – (4,465 ) – to non-controlling interests – – – – – (169 ) (169 ) Purchase of own shares – held in employee share ownership trusts – – – (205 ) (205 ) – (205 ) Shares issued – RAI acquisition (note 24(a)) 107 22,666 – – 22,773 – 22,773 Other movements – – – 3 3 – 3 31 December 2017 614 26,602 (3,392 ) 36,935 60,759 222 60,981 Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2016 507 3,927 (1,294 ) 1,754 4,894 138 5,032 Comprehensive income and expense Profit for the year – – – 4,648 4,648 191 4,839 Differences on exchange – – 1,218 – 1,218 52 1,270 Cash flow hedges – net fair value gains – – 28 – 28 1 29 – reclassified and reported in profit for the year – – 38 – 38 – 38 – reclassified and reported in total assets – – (12 ) – (12 ) – (12 ) Net investment hedges – net fair value losses – – (837 ) – (837 ) – (837 ) – differences on exchange on borrowings – – (124 ) – (124 ) – (124 ) Associates – – – 1,415 – 1,415 – 1,415 Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – (19 ) – (19 ) – (19 ) Retirement benefit schemes – net actuarial losses – – – (231 ) (231 ) 3 (228 ) – surplus recognition and minimum funding obligations – – – – – (1 ) (1 ) (note 12) Associates – – – - 20 20 – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – 36 36 – 36 Other changes in equity Employee share options – value of employee services – – – 71 71 – 71 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares – – – (2,910 ) (2,910 ) – (2,910 ) – to non-controlling interests – – – — — (156 ) (156 ) Purchase of own shares – held in employee share ownership trusts – – – (64 ) (64 ) – (64 ) Non-controlling interests – acquisitions (note 24(c)) – – – 4 4 (4 ) – Other movements – – – 3 3 – 3 31 December 2016 507 3,931 413 3,331 8,182 224 8,406 |
Summary of Composition of Share Premium Account, Capital Redemption Reserves and Merger Reserves | Share premium account, capital redemption reserves and merger reserves comprise: Share premium account £m Capital redemption reserves £m Merger reserves £m Total £m 31 December 2018 91 101 26,414 26,606 31 December 2017 87 101 26,414 26,602 31 December 2016 82 101 3,748 3,931 |
Summary of Movements of Called Up Share Capital | Called-up share capital Ordinary shares of 25p each Number of shares £m Allotted and fully paid 1 January 2018 2,456,278,414 614.06 Changes during the year – share option schemes 137,470 0.03 31 December 2018 2,456,415,884 614.09 Allotted and fully paid 1 January 2017 2,027,019,508 506.75 Changes during the year – share option schemes 213,144 0.05 – Issue of shares RAI acquisition 429,045,762 107.26 31 December 2017 2,456,278,414 614.06 Allotted and fully paid 1 January 2016 2,026,866,724 506.71 Changes during the year – share option schemes 152,784 0.04 31 December 2016 2,027,019,508 506.75 |
Summary of Movements in Other Reserves and Retained Earnings | Movements in other reserves and retained earnings (which are after deducting treasury shares) shown above comprise: Retained earnings Translation reserve £m Hedging reserve £m Fair value reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 31 December 2017 (4,029 ) (132 ) 17 179 573 (3,392 ) (5,195 ) 42,130 Accounting policy change (IFRS 9) (note 31) – – (9 ) – – (9 ) – (29 ) 1 January 2018 (4,029 ) (132 ) 8 179 573 (3,401 ) (5,195 ) 42,101 Comprehensive income and expense Profit for the year – – – – – – – 6,032 Differences on exchange 3,861 – – – – 3,861 – – Cash flow hedges – net fair value losses – (58 ) – – – (58 ) – – – reclassified and reported in profit for the year – 17 – – – 17 – – Investments held at fair value – reclassified and reported in retained earnings – – (8 ) – – (8 ) – 8 Net investment hedges – net fair value losses (472 ) – – – – (472 ) – – – differences on exchange on borrowings (236 ) – – – – (236 ) – – Associates – (38 ) – – – – (38 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – 18 – – – 18 – – Retirement benefit schemes – net actuarial gains (note 12) – – – – – – – 138 – surplus recognition and minimum funding obligations (note 12) – – – – – – – 4 Associates – – – 6 – – 6 – – Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – (33 ) Cash flow hedges reclassified and reported in total assets – (22 ) – – – (22 ) – – Other changes in equity Employee share options – value of employee services – – – – – – – 121 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (4,463 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (139 ) – Non-controlling interests – acquisitions (note 24(c)) – – – – – – – (11 ) Other movements – – – – – – 92 (98 ) 31 December 2018 (914 ) (177 ) 6 179 573 (333 ) (5,242 ) 43,799 Retained earnings Revised Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2017 (382 ) 4 39 179 573 413 (5,053 ) 8,384 Comprehensive income and expense Profit for the year – – – – – – – 37,485 Differences on exchange (3,082 ) – – – – (3,082 ) – – Cash flow hedges – net fair value losses – (263 ) – – – (263 ) – – – reclassified and reported in profit for the year – 109 – – – 109 – – – reclassified and reported in total assets – (16 ) – – – (16 ) – – Investments held at fair value – net fair value losses – – (27 ) – – (27 ) – – Net investment hedges – net fair value gains 425 – – – – 425 – – – differences on exchange on borrowings (67 ) – – – – (67 ) – – Associates – (923 ) – 5 – – (918 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – 34 – – – 34 – – Retirement benefit schemes – net actuarial gains (note 12) – – – – – – – 832 – surplus recognition and minimum funding obligations (note 12) – – – – – – – (5 ) Associates – – – – – – – – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – (171 ) Other changes in equity Employee share options – value of employee services – – – – – – – 105 Dividends and other appropriations – ordinary shares – – – – – – – (4,465 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (205 ) 0 Other movements – – – – – – 63 (60 ) 31 December 2017 (4,029 ) (132 ) 17 179 573 (3,392 ) (5,195 ) 42,130 Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2016 (2,062 ) (33 ) 49 179 573 (1,294 ) (5,049 ) 6,803 Comprehensive income and expense Profit for the year – – – – – – – 4,648 Differences on exchange 1,218 – – – – 1,218 – – Cash flow hedges – net fair value gains – 28 – – – 28 – – – reclassified and reported in profit for the year – 38 – – – 38 – – – reclassified and reported in total assets – (12 ) – – – (12 ) – – Net investment hedges – net fair value losses (837 ) – – – – (837 ) – – – differences on exchange on borrowings (124 ) – – – – (124 ) – – Associates – 1,425 – (10 ) – – 1,415 – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) (2 ) (17 ) – – – (19 ) – – Retirement benefit schemes – net actuarial losses – – – – – – – (231 ) Associates – – – – – – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – 36 Other changes in equity Employee share options – value of employee services – – – – – – – 71 Dividends and other appropriations – ordinary shares – – – – – – – (2,910 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (64 ) – Non-controlling interests – acquisitions (note 24(c)) – – – – – – – 4 Other movements – – – – – – 60 (57 ) 31 December 2016 (382 ) 4 39 179 573 413 (5,053 ) 8,384 |
Summary of Tax Attributable to Components of Other Comprehensive Income | The tax attributable to components of other comprehensive income is as follows: 2018 £m 2017 £m 2016 £m Translation reserve Net investment hedges – net fair value losses – – (2 ) – – (2 ) Hedging reserve Cash flow hedges – net fair value losses/(gains) 18 34 (11 ) – reclassified and reported in profit for the year – – (6 ) 18 34 (17 ) Retained earnings – actuarial (gains)/losses in respect of subsidiaries (33 ) (171 ) 36 (33 ) (171 ) 36 Owners of the parent (15 ) (137 ) 17 Non-controlling interests – – – Total tax recognised in other comprehensive income for the year (note 6(f)) (15 ) (137 ) 17 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Detailed Information About Borrowings [Abstract] | |
Schedule of Detailed Information About Borrowings | Currency Maturity dates Interest rates 2018 £m 2017 £m Eurobonds Euro 2019 to 2045 0.4% to 4.9% 8,717 8,585 Euro 2021 3m EURIBOR +50bps 986 1,326 UK sterling 2019 to 2055 1.8% to 7.3% 4,671 4,680 US dollar 2019 1.6% 512 482 Swiss franc 2021 to 2026 0.6% to 1.4% 523 498 Bonds issued pursuant to Rules under the US Securities Act (as amended) US dollar 2019 to 2047 2.3% to 8.1% 25,428 25,545 US dollar 2020 to 2022 USD 3m LIBOR + 59bps to 88bps 1,381 1,665 Bonds and notes 42,218 42,781 Commercial paper 536 1,200 Other loans 3,859 4,466 Bank loans 608 512 Bank overdrafts 274 469 Finance leases 14 22 47,509 49,450 |
Schedule of Detailed Information About Repayment of Borrowings | Borrowings are repayable as follows: Per balance sheet Contractual gross maturities 2018 £m 2017 £m 2018 £m 2017 £m Within one year 4,225 5,423 5,636 6,381 Between one and two years 7,261 2,344 8,471 3,609 Between two and three years 2,958 7,011 4,086 8,141 Between three and four years 7,095 2,913 8,131 4,034 Between four and five years 2,580 6,857 3,462 7,836 Beyond five years 23,390 24,902 32,712 34,842 47,509 49,450 62,498 64,843 |
Schedule of Analysis of Borrowings by Currency | Borrowings are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: Functional currency £m US dollar £m UK sterling £m Euro £m Canadian dollar £m Other currencies £m Total £m 31 December 2018 Total borrowings 32,612 3,803 450 10,089 – 555 47,509 Effect of derivative financial instruments – cross-currency swaps 4,029 17 (450 ) (3,653 ) – (256 ) (313 ) – forward foreign currency contracts (1,905 ) 1,961 – (389 ) – 321 (12 ) 34,736 5,781 – 6,047 – 620 47,184 31 December 2017 Total borrowings 32,580 4,789 450 10,837 – 794 49,450 Effect of derivative financial instruments – cross-currency swaps 3,903 16 (450 ) (3,613 ) – (243 ) (387 ) – forward foreign currency contracts (1,142 ) 922 – (388 ) 215 388 (5 ) 35,341 5,727 – 6,836 215 939 49,058 |
Schedule of Analysis of Borrowings by Interest Rate Changes | The exposure to interest rate changes when borrowings are re-priced is as follows: Within 1 year £m Between 1-2 years £m Between 2-3 years £m Between 3-4 years £m Between 4-5 years £m Beyond 5 years £m Total £m 31 December 2018 Total borrowings 10,384 4,540 1,967 4,577 2,585 23,456 47,509 Effect of derivative financial instruments – interest rate swaps 3,069 (589 ) (539 ) (236 ) – (1,705 ) – – cross-currency swaps 1,318 – (793 ) – (700 ) (138 ) (313 ) 14,771 3,951 635 4,341 1,885 21,613 47,196 31 December 2017 Total borrowings 12,516 2,325 4,321 1,941 4,332 24,015 49,450 Effect of derivative financial instruments – interest rate swaps 2,995 — (554 ) (533 ) (222 ) (1,686 ) – – cross-currency swaps 1,287 (17 ) – (775 ) – (882 ) (387 ) 16,798 2,308 3,767 633 4,110 21,447 49,063 |
Schedule of Analysis of Net Debt | The Group defines net debt as follows: 2018 £m 2017 £m Borrowings* 47,509 49,450 Derivatives in respect of net debt: – assets (note 16) (647 ) (640 ) – liabilities (note 16) 269 117 Cash and cash equivalents (note 18) (2,602 ) (3,291 ) Current investments held at fair value (note 15) (178 ) (65 ) 44,351 45,571 * Borrowings as at 31 December 2018 include £944 million (2017: £947 million) in respect of the purchase price adjustments relating to the acquisition of Reynolds. |
Schedule of Analysis of Net Debt Movements | The movements in net debt are presented below: 2018 £m Opening balance Accounting policy change (IFRS 9) (note 31) Revised opening balance Subsidiaries acquired Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 49,450 – 49,450 – (3,671 ) 1,730 47,509 Derivatives in respect of net debt: – assets (note 16) (640 ) – (640 ) – 109 (116 ) (647 ) – liabilities (note 16) 117 – 117 – (6 ) 158 269 Cash and cash equivalents (note 18) (3,291 ) – (3,291 ) (1 ) 563 127 (2,602 ) Current investments held at fair value (note 15) (65 ) (144 ) (209 ) – 9 22 (178 ) 45,571 (144 ) 45,427 (1 ) (2,996 ) 1,921 44,351 2017 £m Opening balance Subsidiaries acquired Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 19,495 11,203 20,024 (1,272 ) 49,450 Derivatives in respect of net debt: – assets (note 16) (809 ) - 106 63 (640 ) – liabilities (note 16) 300 - (380 ) 197 117 Cash and cash equivalents (note 18) (2,204 ) (1,288 ) 57 144 (3,291 ) Current investments held at fair value (note 15) (15 ) - (44 ) (6 ) (65 ) 16,767 9,915 19,763 (874 ) 45,571 |
Provisions for liabilities (Tab
Provisions for liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Other Provisions [Abstract] | |
Summary of Provisions Excluding Post-Retirement Benefits | Restructuring of existing businesses £m Employee-related benefits £m Fox River £m Other provisions £m Total £m 1 January 2018 158 40 138 417 753 Differences on exchange - (3 ) - (15 ) (18 ) Provided in respect of the year 41 10 - 50 101 Utilised during the year (72 ) (14 ) (30 ) (71 ) (187 ) 31 December 2018 127 33 108 381 649 Analysed on the balance sheet as – current 74 17 19 208 318 – non-current 53 16 89 173 331 127 33 108 381 649 Restructuring of existing businesses £m Employee- related benefits £m Fox River £m Other provisions £m Total £m 1 January 2017 190 40 163 400 793 Differences on exchange 4 (3 ) – (22 ) (21 ) Subsidiaries acquired - - – 42 42 Provided in respect of the year 172 15 - 95 282 Utilised during the year (208 ) (12 ) (25 ) (98 ) (343 ) 31 December 2017 158 40 138 417 753 Analysed on the balance sheet as – current 87 24 22 266 399 – non-current 71 16 116 151 354 158 40 138 417 753 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Current Payables [Abstract] | |
Summary of Trade and Other Payables | 2018 £m 2017 £m Revised Trade payables 3,557 2,298 Duty, excise and other taxes 3,519 3,577 Accrued charges and deferred income 2,038 1,807 FII GLO deferred income (note 6(b)) 963 963 Social security and other taxation 55 50 Sundry payables 1,554 1,271 11,686 9,966 Current 10,631 8,908 Non-current 1,055 1,058 11,686 9,966 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | The following table presents the Group's financial assets and liabilities that are measured at fair value in accordance with IFRS 13 classification hierarchy: 2018 2017 Level 1 £m Level 2 £m Level 3 £m Total £m Level 1 £m Level 2 £m Level 3 £m Total £m Assets at fair value Investment held at fair value (note 15) 141 – 76 217 91 – 16 107 Derivatives relating to – interest rate swaps (note 16) – 187 – 187 – 166 – 166 – cross-currency swaps (note 16) – 431 – 431 – 450 – 450 – forward foreign currency contracts (note 16) – 117 – 117 – 202 – 202 Assets at fair value 141 735 76 952 91 818 16 925 Liabilities at fair value Derivatives relating to – interest rate swaps (note 16) – 181 – 181 – 91 – 91 – cross-currency swaps (note 16) – 56 – 56 – – – – – forward foreign currency contracts (note 16) – 279 – 279 – 143 – 143 Liabilities at fair value – 516 – 516 – 234 – 234 |
Summary of Derivative Financial Asset and Liabilities Offsetting Arrangements | The gross fair value of derivative financial instruments as presented in the Group balance sheet, together with the Group's rights of offset associated with recognised financial assets and recognised financial liabilities subject to enforceable master netting arrangements and similar agreements, is summarised as follows: 2018 2017 Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Financial Assets – Derivative Financial Instruments (note 16) 735 (295 ) 440 818 (211 ) 607 Financial Liabilities – Derivative Financial Instruments (note 16) (516 ) 295 (221 ) (234 ) 211 (23 ) 219 – 219 584 – 584 * No financial instruments have been offset in the Group balance sheet. |
Schedule of Detailed Information About Hedged Items by Risk Category | The hedged items by risk category are presented below: 2018 Accumulated amount of fair value hedge adjustments on the hedged Line item in the Changes in fair Carrying amount of the hedged item item included in the carrying amount of the hedged item statement of financial value used for calculating Cash flow hedge reserve position where hedge Liabilities Liabilities the hedged item is included ineffectiveness for 2018 £m £m £m £m Fair value hedges Interest rate risk – borrowings 6,424 179 Borrowings (32 ) Cash flow hedges Interest rate risk – borrowings 2,819 Borrowings 189 (146 ) |
Share-based Payments (Tables)
Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Summary of Share-based Payment Expense | The amounts recognised in the income statement in respect of share-based payments were as follows: 2018 2017 2016 Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m LTIP (note (a)) 70 - 56 3 25 6 DSBS (note (b)) 44 2 42 9 40 7 Other schemes 7 - 7 – 6 – Total recognised in the income statement (note 3(a)) 121 2 105 12 71 13 |
Summary of Share-based Payment Liability | The Group has recorded liabilities in respect of vested and unvested grants at the end of 2018 and 2017: 2018 2017 Vested £m Unvested £m Vested £m Unvested £m LTIP 0.5 2.6 0.3 9.1 DSBS 0.2 6.1 0.3 11.6 Total liability 0.7 8.7 0.6 20.7 |
Summary of Valuation Assumptions Used to Determine Fair Value of Share Options | Assumptions used in the Black-Scholes models to determine the fair value of share options at grant date were as follows: 2018 2017 LTIP DSBS LTIP DSBS Expected volatility (%) 18 18 18 18 Average expected term to exercise (years) 3.5 3.0 3.5 3.0 Risk-free rate (%) 1.0 1.0 0.3 0.3 Expected dividend yield (%) 5.0 5.0 3.2 3.2 Share price at date of grant (£) 38.94 38.94 52.11 52.11 Fair value at grant date (£) 29.39 33.50 41.04 47.27 |
Summary of Valuation Assumptions Used in Monte-Carlo Models | Market condition features were incorporated into the Monte-Carlo models for the total shareholder return elements of the LTIP, in determining fair value at grant date. Assumptions used in these models were as follows: 2018 2017 LTIP LTIP Average share price volatility FMCG comparator group (%) 18 19 Average correlation FMCG comparator group (%) 31 31 |
Long Term Incentive Plan | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Summary of Movements for Equity and Cash-Settled Share-based Awards | Details of the movements for the equity- and cash-settled LTIP scheme during the years ended 31 December 2018 and 31 December 2017, were as follows: 2018 2017 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 6,030 378 5,337 407 Granted during the period 3,067 66 1,690 152 Acquired from RAI - - 904 - Exercised during the period (1,739 ) (102 ) (746 ) (65 ) Forfeited during the period (450 ) (36 ) (1,155 ) (116 ) Outstanding at end of year 6,908 306 6,030 378 Exercisable at end of year 676 22 653 7 |
Deferred Share Bonus Scheme | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Summary of Movements for Equity and Cash-Settled Share-based Awards | Details of the movements for the equity- and cash-settled DSBS scheme during the years ended 31 December 2018 and 31 December 2017, were as follows: 2018 2017 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 2,962 382 3,225 423 Granted during the period 1,262 66 1,079 136 Exercised during the period (940 ) (145 ) (1,267 ) (165 ) Forfeited during the period (36 ) (22 ) (75 ) (12 ) Outstanding at end of year 3,248 281 2,962 382 Exercisable at end of year 79 5 61 5 |
Group Employees (Tables)
Group Employees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Number And Average Number Of Employees [Abstract] | |
Summary of Average Number of Persons Employed by Group and Associates | 2018 Number 2017 Number United States 5,066 2,168 APME 15,074 14,075 AMSSA 19,351 19,158 ENA 26,102 25,192 Subsidiary undertakings 65,593 60,593 Associates 29,646 30,809 95,239 91,402 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Summary of Transactions Between Related Parties | 2018 £m 2017 £m 2016 £m Transactions – revenue 473 366 370 – purchases (101 ) (218 ) (298 ) – other net income 216 699 1,023 Amounts receivable at 31 December 26 40 270 Amounts payable at 31 December (1 ) (1 ) (2 ) |
Summary of Amounts Incurred by Entity for Provision of Key Management Personnel Services | 2018 £m 2017 £m 2016 £m The total compensation for key management personnel, including Directors, was: – salaries and other short-term employee benefits 21 24 18 – post-employment benefits 4 5 3 – share-based payments 18 16 12 43 45 33 The following table, which is not part of IAS24 disclosures, shows the aggregate emoluments of the Directors of the Company. Executive Directors Chairman Non-Executive Directors Total 2018 £'000 2017 £'000 2016 £'000 2018 £'000 2017 £'000 2016 £'000 2018 £'000 2017 £'000 2016 £'000 2018 £'000 2017 £'000 2016 £'000 Salary; fees; benefits; incentives – salary 2,211 2,122 2,057 – – – – – – 2,211 2,122 2,057 – fees – – – 680 660 645 1,092 1,042 1,051 1,772 1,702 1,696 – taxable benefits 427 385 335 116 129 106 303 195 122 846 709 563 – short-term incentives 5,031 4,689 4,622 – – – - – – 5,031 4,689 4,622 – long-term incentives 5,300 10,192 4,483 – – – - – – 5,300 10,192 4,483 Sub-total 12,969 17,388 11,497 796 789 751 1,395 1,237 1,173 15,160 19,414 13,421 Pension; other emoluments – pension 921 612 634 – – – – – – 921 612 634 – other emoluments 50 50 44 – – – – – – 50 50 44 Sub-total 971 662 678 – – – – – – 971 662 678 Total emoluments 13,940 18,050 12,175 796 789 751 1,395 1,237 1,173 16,131 20,076 14,099 |
Summary of Aggregate Gains on LTIP Shares Exercised | Aggregate gains on LTIP shares exercised in the year Award Exercised LTIP shares Exercise date Price per share (£) Aggregate gain (£) Nicandro Durante 27 Mar 2015 122,477 27 Mar 2018 39.46 4,832,942 Ben Stevens 27 Mar 2015 66,925 27 Mar 2018 39.46 2,640,861 LTIP - Value of awards 2015 Shares Price per share (£) 1 Face value (£) Nicandro Durante 127,448 36.25 4,619,990 Ben Stevens 69,641 36.25 2,524,486 1 For information only as awards are made as nil cost options. In 2018, no Sharesave were exercised by Executive Directors. |
Contingent liabilities and fi_2
Contingent liabilities and financial commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Summary of Cases | Case Type Case Numbers as at 31 December 2018 Case Numbers as at 31 December 2017 (note 1) Change in Number Increase/(Decrease) US tobacco related actions Medical reimbursement cases (note 2) 2 2 No change Class actions (note 3) 20 24 (4 ) Individual smoking and health cases (note 4) 111 99 12 West Virginia IPIC (note 5) 1 1 No change Engle Progeny Cases (note 6) 2,268 2,569 (301 ) Broin II Cases (note 7) 1,406 2,321 (915 ) Filter Cases (note 8) 58 71 (13 ) State Settlement Agreements – Enforcement and Validity (note 9) 3 2 1 Non-US tobacco related actions Medical reimbursement cases 19 19 No change Class actions (note 10) 13 14 (1 ) Individual smoking and health cases (note 11) 107 120 (13 ) |
Operating Subsidiaries' Expenses and Payments under State Settlement Agreements | 2016 2017 2018 2019 and thereafter Settlement expenses $2,727 $2,856 $2,741 Settlement cash payments $3,042 $4,612 $917 Projected settlement expenses $>2,800 Projected settlement cash payments $>2,800 *Subject to adjustments for changes in sales volume, inflation, operating profit and other factors. Payments are allocated among the companies on the basis of relative market share or other methods. |
Summary of Current Status of Litigation Cases | Canadian province Act pursuant to which Claim was brought Companies named as Defendants Current stage British Columbia Tobacco Damages and Health Care Costs Recovery Act 2000 Imperial Investments Industries Carreras Rothmans Limited RJR Companies Other former Rothmans Group companies All have been served. The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed, and document production and discoveries are ongoing. On 13 February 2017 the province delivered an expert report dated October 2016, quantifying its damages in the amount of CAD$118 billion (approximately £68 billion or US$ 86.3 billion). No trial date has been set. The federal government is seeking CAD$5 million (approximately £2.9 million or US$3.7 million) jointly from all the defendants in respect of costs pertaining to the third-party claim, now dismissed. New Brunswick Tobacco Damages and Health Care Costs Recovery Act 2006 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production and discoveries are substantially complete. The most recent expert report filed by the Province estimates a range of damages between CAD$11.1 billion (approximately £6.4 billion or US$8.1 billion) - CAD$23.2 billion (approximately £13.4 billion or US$17 billion), including expected future costs. Following a motion to set a trial date, the court ordered that the trial commence on 4 November 2019. Ontario Tobacco Damages and Health Care Costs Recovery Act 2009 Imperial the UK Companies and RJR Companies have all been named as defendants and served. The defences of Imperial, the UK Companies and the RJR Companies have been filed. The parties completed significant document production in summer of 2017 and discoveries commenced in the fall of 2018. On 15 June 2018, the province delivered an expert report quantifying its damages in the range of CAD$280 billion (approximately £161 billion or US$205 billion) – CAD$630 billion (approximately £362 billion or US$ 461 billion) in 2016/2017 dollars for the period 1954 – 2060, and the Province has amended the damages sought in its Statement of Claim to CAD$330 billion (approximately £190 billion or US$242 billion). On 31 January 2019, the Province delivered a further expert report claiming an additional CAD $9.4 billion (approximately £5.4 billion or US$6.9 billion) -10.9 billion in damages (approximately £6.3 billion or US$7.9 billion) in respect of environmental tobacco smoke. No trial date has been set. Newfoundland and Labrador Tobacco Health Care Costs Recovery Act 2001 Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. The case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province began its document production in March 2018. Damages have not been quantified by the province. No trial date has been set. Saskatchewan Tobacco Damages and Health Care Costs Recovery Act 2007 Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province has delivered a test shipment of documents. Damages have not been quantified by the province. No trial date has been set. Manitoba Tobacco Damages Health Care Costs Recovery Act 2006 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. Damages have not been quantified by the province. No trial date has been set. Alberta Crown’s Right of Recovery Act 2009 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. The province has stated its claim to be worth CAD$10 billion (approximately £5.7 billion or US$7.3 billion). No trial date has been set. Quebec Tobacco Related Damages and Health Care Costs Recovery Act 2009 Imperial, Investments, Industries, the RJR Companies and Carreras Rothmans Limited have been named as defendants and served. The case is at an early case management stage. The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed. Motions over admissibility of documents and damages discovery have been filed but not heard. The province is seeking CAD$60 billion (approximately £34.4 billion or US$44 billion). No trial date has been set. Prince Edward Island Tobacco Damages and Health Care Costs Recovery Act 2009 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the next step will be document production, which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set. Nova Scotia Tobacco Health Care Costs Recovery Act 2005 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed. The province provided a test document production in March 2018. Damages have not been quantified by the province. No trial date has been set. |
Closed Litigation Matters Explanatory | Matter Jurisdiction Companies named as Defendants Description Disposition Fontem USA R.J. Reynolds Vapor Company Alleged patent infringement Settlement agreed on confidential terms Codacons Italy BAT Italia Smoking and health class action Supreme Court decision Investments Indemnity Japan British American Tobacco (Investments) Limited Alleged patent infringement Settlement agreed on confidential terms Lights Class Actions USA RJRT and B&W Four Lights class actions Court ordered dismissal Parsons Class Action USA RJRT and B&W Smoking and health class action Court ordered dismissal |
Schedule of Total Future Minimum Lease Payments under Non-cancellable Operating Leases | Total future minimum lease payments under non-cancellable operating leases comprise leases where payments fall due: 2018 £m 2017 £m Property Within one year 111 75 Between one and five years 269 183 Beyond five years 137 117 517 375 Plant and equipment and other Within one year 66 32 Between one and five years 107 38 173 70 Total operating lease commitments (note 31) 690 445 |
Interests in subsidiaries (Tabl
Interests in subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Subsidiaries [Abstract] | |
Summarised Financial Information of Subsidiaries With Material Noncontrolling Interests Explanatory | Summarised financial information 2018 £m 2017 £m 2016 £m Revised Revised Revenue 231 237 317 Profit for the year 87 89 129 – Attributable to non-controlling interests 43 44 64 Total comprehensive income 87 87 146 – Attributable to non-controlling interests 43 43 73 Dividends paid to non-controlling interests (40 ) (64 ) (59 ) Summary net assets: Non-current assets 16 18 31 Current assets 116 101 103 Non-current liabilities – (5 ) (4 ) Current liabilities (129 ) (120 ) (94 ) Total equity at the end of the year 3 (6 ) 36 – Attributable to non-controlling interests 1 (3 ) 18 Net cash generated from operating activities 86 67 108 Net cash generated in investing activities (2 ) 14 45 Net cash used in financing activities (77 ) (86 ) (151 ) Differences on exchange 1 (1 ) 1 Increase/(decrease) in net cash and cash equivalents 8 (6 ) 3 Net cash and cash equivalents at 1 January 2 8 5 Net cash and cash equivalents at 31 December 10 2 8 |
Condensed consolidating finan_2
Condensed consolidating financial information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |
Condensed Consolidated Income Statement | Condensed Consolidated Income Statement Year ended 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Revenue — 7,752 — — 16,959 (219 ) 24,492 Raw materials and consumables used — (662 ) — — (4,161 ) 159 (4,664 ) Changes in inventories of finished goods and work in progress — (4 ) — — 118 — 114 Employee benefit costs (5 ) (169 ) (13 ) — (2,822 ) 4 (3,005 ) Depreciation, amortisation and impairment costs — (91 ) — — (947 ) — (1,038 ) Other operating income — 3 22 — 3,847 (3,787 ) 85 Loss on reclassification from amortised cost to fair value — — — — (3 ) — (3 ) Other operating expenses (124 ) (6,579 ) (17 ) — (3,819 ) 3,871 (6,668 ) (Loss)/profit from operations (129 ) 250 (8 ) — 9,172 28 9,313 Net finance income/(costs) 95 9 (421 ) 3 (947 ) (120 ) (1,381 ) Share of post-tax results of associates and joint ventures — — — — 419 — 419 Profit before taxation (34 ) 259 (429 ) 3 8,644 (92 ) 8,351 Taxation on ordinary activities — (100 ) 93 1 (2,135 ) — (2,141 ) Equity income from subsidiaries 6,210 2,569 3,436 2,755 — (14,970 ) — Profit for the year 6,176 2,728 3,100 2,759 6,509 (15,062 ) 6,210 Attributable to: Owners of the parent 6,176 2,728 3,100 2,759 6,331 (15,062 ) 6,032 Non-controlling interests — — — — 178 — 178 6,176 2,728 3,100 2,759 6,509 (15,062 ) 6,210 Condensed Consolidated Income Statement Year ended 31 December 2017 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Revenue — 3,459 — — 16,243 (138 ) 19,564 Raw materials and consumables used — (346 ) — — (4,286 ) 112 (4,520 ) Changes in inventories of finished goods and work in progress — (7 ) — — (507 ) 1 (513 ) Employee benefit costs (8 ) (117 ) (35 ) (2 ) (2,525 ) 8 (2,679 ) Depreciation, amortisation and impairment costs — (28 ) — — (874 ) — (902 ) Other operating income — 7 34 — 1,859 (1,756 ) 144 Other operating expenses (101 ) (2,889 ) (6 ) — (3,499 ) 1,813 (4,682 ) (Loss)/profit from operations (109 ) 79 (7 ) (2 ) 6,411 40 6,412 Net finance income/(costs) 3 11 (190 ) 9 (908 ) (19 ) (1,094 ) Share of post-tax results of associates and joint ventures — — — — 24,209 — 24,209 Profit before taxation (106 ) 90 (197 ) 7 29,712 21 29,527 Taxation on ordinary activities — (240 ) 61 (3 ) 8,311 — 8,129 Equity income from subsidiaries 37,656 3,870 4,259 3,893 — (49,678 ) — Profit for the year 37,550 3,720 4,123 3,897 38,023 (49,657 ) 37,656 Attributable to: Owners of the parent 37,550 3,720 4,123 3,897 37,852 (49,657 ) 37,485 Non-controlling interests — — — — 171 — 171 37,550 3,720 4,123 3,897 38,023 (49,657 ) 37,656 Condensed Consolidated Income Statement Year ended 31 December 2016 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Revenue — — — — 14,130 — 14,130 Raw materials and consumables used — — — — (3,777 ) — (3,777 ) Changes in inventories of finished goods and work in progress — — — — 44 — 44 Employee benefit costs (7 ) — — — (2,274 ) 7 (2,274 ) Depreciation, amortisation and impairment costs — — — — (607 ) — (607 ) Other operating income — — — — 176 — 176 Other operating expenses (75 ) — — — (3,037 ) 75 (3,037 ) (Loss)/profit from operations (82 ) — — — 4,655 82 4,655 Net finance (costs)/income (54 ) — — — (637 ) 54 (637 ) Share of post-tax results of associates and joint ventures — — — — 2,227 — 2,227 Profit before taxation (136 ) — — — 6,245 136 6,245 Taxation on ordinary activities — — — — (1,406 ) — (1,406 ) Equity income from subsidiaries 4,839 — — — — (4,839 ) — Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Attributable to: Owners of the parent 4,703 — — — 4,648 (4,703 ) 4,648 Non-controlling interests — — — — 191 — 191 4,703 — — — 4,839 (4,703 ) 4,839 |
Condensed Consolidated Statement of Comprehensive Income | Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Profit for the year 6,176 2,728 3,100 2,759 6,509 (15,062 ) 6,210 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — — — 3,099 — 3,099 Differences on exchange — — — — 3,868 — 3,868 Cash flow hedges — — — — (41 ) — (41 ) Net investment hedges — — — — (708 ) — (708 ) Associates - share of OCI, net of tax — — — — (38 ) — (38 ) Tax on items that may be reclassified — — — — 18 — 18 Items that will not be reclassified subsequently to profit or loss: — — — — 115 — 115 Retirement benefit schemes — — — — 142 — 142 Associates - share of OCI, net of tax — — — — 6 — 6 Tax on items that will not be reclassified — — — — (33 ) — (33 ) Total other comprehensive income for the year, net of tax — — — — 3,214 — 3,214 Share of subsidiaries OCI (other reserves) 115 — — — — (115 ) — Share of subsidiaries OCI (retained earnings) 3,099 — — — — (3,099 ) — Total comprehensive income/(expense) for the year, net of tax 9,390 2,728 3,100 2,759 9,723 (18,276 ) 9,424 Attributable to: Owners of the parent 9,390 2,728 3,100 2,759 9,538 (18,276 ) 9,239 Non-controlling interests — — — — 185 — 185 9,390 2,728 3,100 2,759 9,723 (18,276 ) 9,424 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2017 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Profit for the year 37,550 3,720 4,123 3,897 38,023 (49,657 ) 37,656 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — — — (3,809 ) — (3,809 ) Differences on exchange — — — — (3,084 ) — (3,084 ) Cash flow hedges — — — — (171 ) — (171 ) Investments held at fair value — — — — (27 ) — (27 ) Net investment hedges — — — — 357 — 357 Associates - share of OCI, net of tax — — — — (918 ) — (918 ) Tax on items that may be reclassified — — — — 34 — 34 Items that will not be reclassified subsequently to profit or loss: — — — — 681 — 681 Retirement benefit schemes — — — — 827 — 827 Associates - share of OCI, net of tax — — — — 25 — 25 Tax on items that will not be reclassified — — — — (171 ) — (171 ) Total other comprehensive expense for the year, net of tax — — — — (3,128 ) — (3,128 ) Share of subsidiaries OCI (other reserves) 681 — — — — (681 ) — Share of subsidiaries OCI (retained earnings) (3,809 ) — — — — 3,809 — Total comprehensive income/(expense) for the year, net of tax 34,422 3,720 4,123 3,897 34,895 (46,529 ) 34,528 Attributable to: Owners of the parent 34,422 3,720 4,123 3,897 34,728 (46,529 ) 34,361 Non-controlling interests — — — — 167 — 167 34,422 3,720 4,123 3,897 34,895 (46,529 ) 34,528 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2016 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — — — 1,760 — 1,760 Differences on exchange — — — — 1,270 — 1,270 Cash flow hedges — — — — 55 — 55 Net investment hedges — — — — (961 ) — (961 ) Associates - share of OCI, net of tax — — — — 1,415 — 1,415 Tax on items that may be reclassified — — — — (19 ) — (19 ) Items that will not be reclassified subsequently to profit or loss: — — — — (173 ) — (173 ) Retirement benefit schemes — — — — (229 ) — (229 ) Associates - share of OCI, net of tax — — — — 20 — 20 Tax on items that will not be reclassified — — — — 36 — 36 Total other comprehensive income for the year, net of tax — — — — 1,587 — 1,587 Share of subsidiaries OCI (other reserves) (173 ) — — — — 173 — Share of subsidiaries OCI (retained earnings) 1,760 — — — — (1,760 ) — Total comprehensive income/(expense) for the year, net of tax 6,290 — — — 6,426 (6,290 ) 6,426 Attributable to: Owners of the parent 6,290 — — — 6,180 (6,290 ) 6,180 Non-controlling interests — — — — 246 — 246 6,290 — — — 6,426 (6,290 ) 6,426 |
Condensed Consolidated Balance Sheet | Condensed Consolidated Balance Sheet As at 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Assets Intangible assets — 2,935 — 7,737 113,342 (1 ) 124,013 Property, plant and equipment — 763 1 — 4,402 — 5,166 Investments in subsidiaries 32,543 21,368 30,625 19,636 — (104,172 ) — Investments in associates and joint ventures — — — — 1,737 — 1,737 Retirement benefit assets — — — — 1,147 — 1,147 Deferred tax assets — 521 17 4 (198 ) — 344 Trade and other receivables — 5 464 32 762 (578 ) 685 Investments held at fair value — — — — 39 — 39 Derivative financial instruments — — — — 556 — 556 Total non-current assets 32,543 25,592 31,107 27,409 121,787 (104,751 ) 133,687 Inventories — 711 — — 5,319 (1 ) 6,029 Income tax receivable — — — — 74 — 74 Trade and other receivables 7,306 1,102 820 59 4,431 (10,130 ) 3,588 Investments held at fair value — — — — 178 — 178 Derivative financial instruments — — — — 179 — 179 Cash and cash equivalents 6 — — — 2,602 (6 ) 2,602 7,312 1,813 820 59 12,783 (10,137 ) 12,650 Assets classified as held-for-sale — — — — 5 — 5 Total current assets 7,312 1,813 820 59 12,788 (10,137 ) 12,655 Total assets 39,855 27,405 31,927 27,468 134,575 (114,888 ) 146,342 Equity - capital and reserves Share capital 614 14,948 14,348 22,586 1,921 (53,803 ) 614 Share premium, capital redemption and merger reserves 22,854 — — — 28,755 (25,003 ) 26,606 Other reserves 204 (46 ) (44 ) (46 ) (335 ) (66 ) (333 ) Retained earnings 11,291 8,420 6,853 4,888 36,974 (29,869 ) 38,557 Owners of the parent 34,963 23,322 21,157 27,428 67,315 (108,741 ) 65,444 Non-controlling interests — — — — 244 — 244 Total equity 34,963 23,322 21,157 27,428 67,559 (108,741 ) 65,688 Liabilities Borrowings 1,571 126 8,140 — 35,018 (1,571 ) 43,284 Retirement benefit liabilities — 853 53 18 741 — 1,665 Deferred tax liabilities — — — — 17,776 — 17,776 Other provisions for liabilities 1 1 — — 330 (1 ) 331 Trade and other payables 8 15 89 — 1,529 (586 ) 1,055 Derivative financial instruments — — — — 214 — 214 Total non-current liabilities 1,580 995 8,282 18 55,608 (2,158 ) 64,325 Borrowings 2,062 98 1,573 — 3,497 (3,005 ) 4,225 Income tax payable — 8 133 — 712 — 853 Other provisions for liabilities — 20 — — 298 — 318 Trade and other payables 1,248 2,962 782 22 6,599 (982 ) 10,631 Derivative financial instruments 2 — — — 302 (2 ) 302 Total current liabilities 3,312 3,088 2,488 22 11,408 (3,989 ) 16,329 Total equity and liabilities 39,855 27,405 31,927 27,468 134,575 (114,888 ) 146,342 Condensed Consolidated Balance Sheet As at 31 December 2017 (revised) BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Assets Intangible assets — 2,780 — 7,284 107,722 (1 ) 117,785 Property, plant and equipment — 677 2 — 4,203 — 4,882 Investments in subsidiaries 58,255 17,217 29,165 18,972 — (123,609 ) — Investments in associates and joint ventures — — — — 1,577 — 1,577 Retirement benefit assets — — — — 1,123 — 1,123 Deferred tax assets — 320 16 4 (7 ) — 333 Trade and other receivables — 23 860 42 826 (995 ) 756 Investments held at fair value — — — — 42 — 42 Derivative financial instruments — — — — 590 — 590 Total non-current assets 58,255 21,017 30,043 26,302 116,076 (124,605 ) 127,088 Inventories — 721 — — 5,144 (1 ) 5,864 Income tax receivable — — 339 — 121 — 460 Trade and other receivables 7,365 — 571 9 5,725 (9,617 ) 4,053 Investments held at fair value — — — — 65 — 65 Derivative financial instruments — — — — 228 — 228 Cash and cash equivalents 5 2 2 — 3,287 (5 ) 3,291 7,370 723 912 9 14,570 (9,623 ) 13,961 Assets classified as held-for-sale — — — — 5 — 5 Total current assets 7,370 723 912 9 14,575 (9,623 ) 13,966 Total assets 65,625 21,740 30,955 26,311 130,651 (134,228 ) 141,054 Equity - capital and reserves Share capital 614 14,070 13,509 21,260 1,297 (50,136 ) 614 Share premium, capital redemption and merger reserves 22,939 — — — 26,602 (22,939 ) 26,602 Other reserves 805 (25 ) (24 ) (24 ) (3,392 ) (732 ) (3,392 ) Retained earnings 36,511 5,128 6,276 5,055 37,434 (53,469 ) 36,935 Owners of the parent 60,869 19,173 19,761 26,291 61,941 (127,276 ) 60,759 Non-controlling interests — — — — 222 — 222 Total equity 60,869 19,173 19,761 26,291 62,163 (127,276 ) 60,981 Liabilities Borrowings 1,571 186 8,212 — 35,629 (1,571 ) 44,027 Retirement benefit liabilities — 926 42 20 833 — 1,821 Deferred tax liabilities — — — — 17,129 — 17,129 Other provisions for liabilities — 1 — — 353 — 354 Trade and other payables 8 18 102 — 1,933 (1,003 ) 1,058 Derivative financial instruments — — — — 79 — 79 Total non-current liabilities 1,579 1,131 8,356 20 55,956 (2,574 ) 64,468 Borrowings 2,058 40 1,009 — 4,374 (2,058 ) 5,423 Income tax payable — 23 — — 697 — 720 Other provisions for liabilities — 4 — — 395 — 399 Trade and other payables 1,119 1,369 1,829 — 6,911 (2,320 ) 8,908 Derivative financial instruments — — — — 155 — 155 Total current liabilities 3,177 1,436 2,838 — 12,532 (4,378 ) 15,605 Total equity and liabilities 65,625 21,740 30,955 26,311 130,651 (134,228 ) 141,054 |
Condensed Consolidated Cash Flow Statement | Condensed Consolidated Cash Flow Statement Year ended 31 December 2018 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (45 ) 1,670 349 (7 ) 8,249 79 10,295 Net cash generated from/(used in) investing activities 187 3,039 4,280 3,366 (877 ) (11,016 ) (1,021 ) Net cash (used in)/generated from financing activities (140 ) (4,711 ) (4,631 ) (3,359 ) (11,391 ) 14,602 (9,630 ) Net cash flows generated from/(used in) operating, investing and financing activities 2 (2 ) (2 ) — (4,019 ) 3,665 (356 ) Differences on exchange (1 ) — — — (138 ) 1 (138 ) Increase/(decrease) in net cash and cash equivalents in the year 1 (2 ) (2 ) — (4,157 ) 3,666 (494 ) Net cash and cash equivalents at 1 January* 5 2 2 — 2,813 — 2,822 Net cash and cash equivalents at 31 December 6 — — — (1,344 ) 3,666 2,328 Condensed Consolidated Cash Flow Statement Year ended 31 December 2017 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (12 ) (1,860 ) (270 ) (11 ) 7,488 12 5,347 Net cash generated from/(used in) investing activities 2 (88 ) 1,116 1 (19,512 ) (63 ) (18,544 ) Net cash generated from/(used in) financing activities 10 1,950 (844 ) 10 21,030 (7,397 ) 14,759 Net cash flows generated from/(used in) operating, investing and financing activities — 2 2 — 9,006 (7,448 ) 1,562 Differences on exchange — — — — (391 ) — (391 ) Increase/(decrease) in net cash and cash equivalents in the year — 2 2 — 8,615 (7,448 ) 1,171 Net cash and cash equivalents at 1 January* 5 — — — 1,646 — 1,651 Net cash and cash equivalents at 31 December 5 2 2 — 10,261 (7,448 ) 2,822 Condensed Consolidated Cash Flow Statement Year ended 31 December 2016 BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (23 ) — — — 4,610 23 4,610 Net cash generated from/(used in) investing activities 24 — — — (571 ) (93 ) (640 ) Net cash generated from/(used in) financing activities — — — — 1,746 (5,975 ) (4,229 ) Net cash flows generated from/(used in) operating, investing and financing activities 1 — — — 5,785 (6,045 ) (259 ) Differences on exchange 1 — — — 179 — 180 Increase/(decrease) in net cash and cash equivalents in the year 2 — — — 5,964 (6,045 ) (79 ) Net cash and cash equivalents at 1 January* 3 — — — 1,727 — 1,730 Net cash and cash equivalents at 31 December 5 — — — 7,691 (6,045 ) 1,651 *The opening balance of net cash and cash equivalents represents external cash held by the parent guarantor, issuers, subsidiary guarantors and non-guarantor subsidiaries. *The opening balance of net cash and cash equivalents represents external cash held by the parent guarantor, issuers, subsidiary guarantors and non-guarantor subsidiaries. |
Statement preparation in anticipation of exchange offer | |
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |
Condensed Consolidated Income Statement | Condensed Consolidated Income Statement Year ended 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Revenue — — — — — 24,492 — 24,492 Raw materials and consumables used — — — — — (4,664 ) — (4,664 ) Changes in inventories of finished goods and work in progress — — — — — 114 — 114 Employee benefit costs (5 ) — — (2 ) (13 ) (2,990 ) 5 (3,005 ) Depreciation, amortisation and impairment costs — — — — — (1,038 ) — (1,038 ) Other operating income — — — — 22 63 — 85 Loss on reclassification from amortised cost to fair value — — — — — (3 ) — (3 ) Other operating expenses (124 ) (3 ) (1 ) (4 ) (17 ) (6,643 ) 124 (6,668 ) (Loss)/Profit from operations (129 ) (3 ) (1 ) (6 ) (8 ) 9,331 129 9,313 Net finance income/(costs) 95 239 96 248 (421 ) (599 ) (1,039 ) (1,381 ) Share of post-tax results of associates and joint ventures — — — — — 419 — 419 Profit before taxation (34 ) 236 95 242 (429 ) 9,151 (910 ) 8,351 Taxation on ordinary activities — (79 ) 7 1 93 (2,163 ) — (2,141 ) Equity income from subsidiaries 6,210 — — — 3,436 — (9,646 ) — Profit for the year 6,176 157 102 243 3,100 6,988 (10,556 ) 6,210 Attributable to: Owners of the parent 6,176 157 102 243 3,100 6,810 (10,556 ) 6,032 Non-controlling interests — — — — — 178 — 178 6,176 157 102 243 3,100 6,988 (10,556 ) 6,210 Condensed Consolidated Income Statement Year ended 31 December 2017 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Revenue — — — — — 19,564 — 19,564 Raw materials and consumables used — — — — — (4,520 ) — (4,520 ) Changes in inventories of finished goods and work in progress — — — — — (513 ) — (513 ) Employee benefit costs (8 ) — — (3 ) (35 ) (2,641 ) 8 (2,679 ) Depreciation, amortisation and impairment costs — — — — — (902 ) — (902 ) Other operating income — 1 — 1 33 109 — 144 Other operating expenses (101 ) (1 ) (1 ) (2 ) (7 ) (4,671 ) 101 (4,682 ) (Loss)/Profit from operations (109 ) — (1 ) (4 ) (9 ) 6,426 109 6,412 Net finance income/(costs) 3 (62 ) (22 ) 636 (191 ) (1,403 ) (55 ) (1,094 ) Share of post-tax results of associates and joint ventures — — — — — 24,209 — 24,209 Profit before taxation (106 ) (62 ) (23 ) 632 (200 ) 29,232 54 29,527 Taxation on ordinary activities — 10 (40 ) 4 61 8,094 — 8,129 Equity income from subsidiaries 37,656 — — — 4,259 — (41,915 ) — Profit for the year 37,550 (52 ) (63 ) 636 4,120 37,326 (41,861 ) 37,656 Attributable to: Owners of the parent 37,550 (52 ) (63 ) 636 4,120 37,155 (41,861 ) 37,485 Non-controlling interests — — — — — 171 — 171 37,550 (52 ) (63 ) 636 4,120 37,326 (41,861 ) 37,656 Condensed Consolidated Income Statement Year ended 31 December 2016 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Revenue — — — — — 14,130 — 14,130 Raw materials and consumables used — — — — — (3,777 ) — (3,777 ) Changes in inventories of finished goods and work in progress — — — — — 44 — 44 Employee benefit costs (7 ) — — (3 ) — (2,271 ) 7 (2,274 ) Depreciation, amortisation and impairment costs — — — — — (607 ) — (607 ) Other operating income — — — — — 176 — 176 Other operating expenses (75 ) — (4 ) — — (3,033 ) 75 (3,037 ) (Loss)/profit from operations (82 ) — (4 ) (3 ) — 4,662 82 4,655 Net finance (costs)/income (54 ) — 1,006 (412 ) — (1,231 ) 54 (637 ) Share of post-tax results of associates and joint ventures — — — — — 2,227 — 2,227 Profit before taxation (136 ) — 1,002 (415 ) — 5,658 136 6,245 Taxation on ordinary activities — — (2 ) 65 — (1,469 ) — (1,406 ) Equity income from subsidiaries 4,839 — — — — — (4,839 ) — Profit for the year 4,703 — 1,000 (350 ) — 4,189 (4,703 ) 4,839 Attributable to: Owners of the parent 4,703 — 1,000 (350 ) — 3,998 (4,703 ) 4,648 Non-controlling interests — — — — — 191 — 191 4,703 — 1,000 (350 ) — 4,189 (4,703 ) 4,839 |
Condensed Consolidated Statement of Comprehensive Income | Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Profit for the year 6,176 157 102 243 3,100 6,988 (10,556 ) 6,210 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — (101 ) 15 — — 3,185 — 3,099 Differences on exchange — — — — — 3,868 — 3,868 Cash flow hedges — (101 ) 15 — — 45 — (41 ) Net investment hedges — — — — — (708 ) — (708 ) Associates - share of OCI, net of tax — — — — — (38 ) — (38 ) Tax on items that may be reclassified — — — — — 18 — 18 Items that will not be reclassified subsequently to profit or loss: — — — — — 115 — 115 Retirement benefit schemes — — — — — 142 — 142 Associates - share of OCI, net of tax — — — — — 6 — 6 Tax on items that will not be reclassified — — — — — (33 ) — (33 ) Total other comprehensive (expense)/income for the year, net of tax — (101 ) 15 — — 3,300 — 3,214 Share of subsidiaries OCI (other reserves) 115 — — — — — (115 ) — Share of subsidiaries OCI (retained earnings) 3,099 — — — — — (3,099 ) — Total comprehensive income/(expense) for the year, net of tax 9,390 56 117 243 3,100 10,288 (13,770 ) 9,424 Attributable to: Owners of the parent 9,390 56 117 243 3,100 10,103 (13,770 ) 9,239 Non-controlling interests — — — — — 185 — 185 9,390 56 117 243 3,100 10,288 (13,770 ) 9,424 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2017 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Profit for the year 37,550 (52 ) (63 ) 636 4,120 37,326 (41,861 ) 37,656 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — (242 ) (21 ) — — (3,546 ) — (3,809 ) Differences on exchange — — — — — (3,084 ) — (3,084 ) Cash flow hedges — (242 ) (10 ) — — 81 — (171 ) Investments held at fair value — — — — — (27 ) — (27 ) Net investment hedges — — (11 ) — — 368 — 357 Associates - share of OCI, net of tax — — — — — (918 ) — (918 ) Tax on items that may be reclassified — — — — — 34 — 34 Items that will not be reclassified subsequently to profit or loss: — — — — — 681 — 681 Retirement benefit schemes — — — — — 827 — 827 Associates - share of OCI, net of tax — — — — — 25 — 25 Tax on items that will not be reclassified — — — — — (171 ) — (171 ) Total other comprehensive expense for the year, net of tax — (242 ) (21 ) — — (2,865 ) — (3,128 ) Share of subsidiaries OCI (other reserves) 681 — — — — — (681 ) — Share of subsidiaries OCI (retained earnings) (3,809 ) — — — — — 3,809 — Total comprehensive income/(expense) for the year, net of tax 34,422 (294 ) (84 ) 636 4,120 34,461 (38,733 ) 34,528 Attributable to: Owners of the parent 34,422 (294 ) (84 ) 636 4,120 34,294 (38,733 ) 34,361 Non-controlling interests — — — — — 167 — 167 34,422 (294 ) (84 ) 636 4,120 34,461 (38,733 ) 34,528 Condensed Consolidated Statement of Comprehensive Income Year ended 31 December 2016 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Profit for the year 4,703 — 1,000 (350 ) — 4,189 (4,703 ) 4,839 Other comprehensive income/(expense) Items that may be reclassified subsequently to profit or loss: — — (397 ) — — 2,157 — 1,760 Differences on exchange — — — — — 1,270 — 1,270 Cash flow hedges — — 5 — — 50 — 55 Net investment hedges — — (402 ) — — (559 ) — (961 ) Associates - share of OCI, net of tax — — — — — 1,415 — 1,415 Tax on items that may be reclassified — — — — — (19 ) — (19 ) Items that will not be reclassified subsequently to profit or loss: — — — — — (173 ) — (173 ) Retirement benefit schemes — — — — — (229 ) — (229 ) Associates - share of OCI, net of tax — — — — — 20 — 20 Tax on items that will not be reclassified — — — — — 36 — 36 Total other comprehensive (expense)/income for the year, net of tax — — (397 ) — — 1,984 — 1,587 Share of subsidiaries OCI (other reserves) (173 ) — — — — — 173 — Share of subsidiaries OCI (retained earnings) 1,760 — — — — — (1,760 ) — Total comprehensive income/(expense) for the year, net of tax 6,290 — 603 (350 ) — 6,173 (6,290 ) 6,426 Attributable to: Owners of the parent 6,290 — 603 (350 ) — 5,927 (6,290 ) 6,180 Non-controlling interests — — — — — 246 — 246 6,290 — 603 (350 ) — 6,173 (6,290 ) 6,426 |
Condensed Consolidated Balance Sheet | Condensed Consolidated Balance Sheet As at 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Assets Intangible assets — — — — — 124,013 — 124,013 Property, plant and equipment — — — — 1 5,165 — 5,166 Investments in subsidiaries 32,543 — 718 3,732 30,625 — (67,618 ) — Investments in associates and joint ventures — — — — — 1,737 — 1,737 Retirement benefit assets — — — 15 — 1,132 — 1,147 Deferred tax assets — 74 — — 17 253 — 344 Trade and other receivables — 15,707 21,911 — 464 (38,343 ) 946 685 Investments held at fair value — — — — — 39 — 39 Derivative financial instruments — — 708 — — (7 ) (145 ) 556 Total non-current assets 32,543 15,781 23,337 3,747 31,107 93,989 (66,817 ) 133,687 Inventories — — — — — 6,029 — 6,029 Income tax receivable — — — — — 74 — 74 Trade and other receivables 7,306 2,567 19,576 15 820 (13,626 ) (13,070 ) 3,588 Investments held at fair value — — — — — 178 — 178 Derivative financial instruments — — 405 — — (215 ) (11 ) 179 Cash and cash equivalents 6 9 56 — — 2,537 (6 ) 2,602 7,312 2,576 20,037 15 820 (5,023 ) (13,087 ) 12,650 Assets classified as held-for-sale — — — — — 5 — 5 Total current assets 7,312 2,576 20,037 15 820 (5,018 ) (13,087 ) 12,655 Total assets 39,855 18,357 43,374 3,762 31,927 88,971 (79,904 ) 146,342 Equity - capital and reserves Share capital 614 — 231 91 14,348 614 (15,284 ) 614 — Share premium, capital redemption and merger reserves 22,854 30 — 3,401 — 33,562 (33,241 ) 26,606 — Other reserves 204 (195 ) (1,091 ) 363 (44 ) (333 ) 763 (333 ) Retained earnings 11,291 105 2,841 (100 ) 6,853 38,557 (20,990 ) 38,557 Owners of the parent 34,963 (60 ) 1,981 3,755 21,157 72,400 (68,752 ) 65,444 Non-controlling interests — — — — — 244 — 244 Total equity 34,963 (60 ) 1,981 3,755 21,157 72,644 (68,752 ) 65,688 Liabilities Borrowings 1,571 15,599 18,450 — 8,140 (1,422 ) 946 43,284 Retirement benefit liabilities — — — — 53 1,612 — 1,665 Deferred tax liabilities — — 30 4 — 17,742 — 17,776 Other provisions for liabilities 1 — — — — 331 (1 ) 331 Trade and other payables 8 — 4 — 89 962 (8 ) 1,055 Derivative financial instruments — 145 217 — — (3 ) (145 ) 214 Total non-current liabilities 1,580 15,744 18,701 4 8,282 19,222 792 64,325 Borrowings 2,062 2,637 22,293 1 1,573 (12,519 ) (11,822 ) 4,225 Income tax payable — 2 — — 133 718 — 853 Other provisions for liabilities — — — — — 318 — 318 Trade and other payables 1,248 25 30 2 782 8,677 (133 ) 10,631 Derivative financial instruments 2 9 369 — — (89 ) 11 302 Total current liabilities 3,312 2,673 22,692 3 2,488 (2,895 ) (11,944 ) 16,329 Total equity and liabilities 39,855 18,357 43,374 3,762 31,927 88,971 (79,904 ) 146,342 Condensed Consolidated Balance Sheet As at 31 December 2017 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Assets Intangible assets — — — — — 117,785 — 117,785 Property, plant and equipment — — — — 2 4,880 — 4,882 Investments in subsidiaries 58,255 — 718 3,687 29,165 — (91,825 ) — Investments in associates and joint ventures — — — — — 1,577 — 1,577 Retirement benefit assets — — — 52 — 1,071 — 1,123 Deferred tax assets — 49 — — 16 268 — 333 Trade and other receivables — 14,787 12,333 — 860 (27,699 ) 475 756 Investments held at fair value — — — — — 42 — 42 Derivative financial instruments — 68 594 — — (4 ) (68 ) 590 Total non-current assets 58,255 14,904 13,645 3,739 30,043 97,920 (91,418 ) 127,088 Inventories — — — — — 5,864 — 5,864 Income tax receivable — — — — 339 121 — 460 Trade and other receivables 7,365 56 30,789 24 569 (25,490 ) (9,260 ) 4,053 Investments held at fair value — — — — — 65 — 65 Derivative financial instruments — — 339 — — (111 ) — 228 Cash and cash equivalents 5 122 750 — 2 2,417 (5 ) 3,291 — — — 5 — 5 7,370 178 31,878 24 910 (17,134 ) (9,265 ) 13,961 Assets classified as held-for-sale — — — — — 5 — 5 Total current assets 7,370 178 31,878 24 910 (17,129 ) (9,265 ) 13,966 Total assets 65,625 15,082 45,523 3,763 30,953 80,791 (100,683 ) 141,054 Equity - capital and reserves Share capital 614 — 231 91 13,509 614 (14,445 ) 614 Share premium, capital redemption and merger reserves 22,939 258 — 3,401 — 22,943 (22,939 ) 26,602 Other reserves 805 (129 ) (1,106 ) 322 (25 ) (3,427 ) 168 (3,392 ) Retained earnings 36,511 (52 ) 2,741 (75 ) 6,275 46,032 (54,497 ) 36,935 Owners of the parent 60,869 77 1,866 3,739 19,759 66,162 (91,713 ) 60,759 Non-controlling interests — — — — — 222 — 222 Total equity 60,869 77 1,866 3,739 19,759 66,384 (91,713 ) 60,981 Liabilities Borrowings 1,571 14,783 19,873 — 8,212 (1,364 ) 952 44,027 Retirement benefit liabilities — — — — 42 1,779 — 1,821 Deferred tax liabilities — — 38 13 — 17,078 — 17,129 Other provisions for liabilities — — — — — 354 — 354 Trade and other payables 8 — 4 — 102 952 (8 ) 1,058 Derivative financial instruments — — 158 — — (11 ) (68 ) 79 Total non-current liabilities 1,579 14,783 20,073 13 8,356 18,788 876 64,468 Borrowings 2,058 160 23,290 1 1,009 (11,408 ) (9,687 ) 5,423 Income tax payable — 2 — 7 — 711 — 720 Other provisions for liabilities — — — 1 — 398 — 399 Trade and other payables 1,119 54 8 2 1,829 6,049 (153 ) 8,908 Derivative financial instruments — 6 286 — — (131 ) (6 ) 155 Total current liabilities 3,177 222 23,584 11 2,838 (4,381 ) (9,846 ) 15,605 Total equity and liabilities 65,625 15,082 45,523 3,763 30,953 80,791 (100,683 ) 141,054 |
Condensed Consolidated Cash Flow Statement | Condensed Consolidated Cash Flow Statement Year ended 31 December 2018 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (45 ) (81 ) 19 (13 ) 349 10,025 41 10,295 Net cash generated from/(used in) investing activities 187 946 709 2 4,280 (6,853 ) (292 ) (1,021 ) Net cash (used in)/generated from financing activities (140 ) (980 ) (1,355 ) 11 (4,631 ) (3,663 ) 1,128 (9,630 ) Net cash flows generated from/(used in) operating, investing and financing activities 2 (115 ) (627 ) — (2 ) (491 ) 877 (356 ) Differences on exchange (1 ) 2 34 — — (173 ) — (138 ) Increase/(decrease) in net cash and cash equivalents in the year 1 (113 ) (593 ) — (2 ) (664 ) 877 (494 ) Net cash and cash equivalents at 1 January* 5 122 558 — 2 2,135 — 2,822 Net cash and cash equivalents at 31 December 6 9 (35 ) — — 1,471 877 2,328 Condensed Consolidated Cash Flow Statement Year ended 31 December 2017 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (12 ) 67 10 69 (270 ) 5,470 13 5,347 Net cash generated from/(used in) investing activities 2 113 350 — 1,116 (20,020 ) (105 ) (18,544 ) Net cash generated from/(used in) financing activities 10 (52 ) 237 (69 ) (844 ) 22,772 (7,295 ) 14,759 Net cash flows generated from/(used in) operating, investing and financing activities — 128 597 — 2 8,222 (7,387 ) 1,562 Differences on exchange — (6 ) 15 — — (400 ) — (391 ) Increase/(decrease) in net cash and cash equivalents in the year — 122 612 — 2 7,822 (7,387 ) 1,171 Net cash and cash equivalents at 1 January* 5 — (56 ) — — 1,702 — 1,651 Net cash and cash equivalents at 31 December 5 122 556 — 2 9,524 (7,387 ) 2,822 Condensed Consolidated Cash Flow Statement Year ended 31 December 2016 BAT p.l.c. BATCAP BATIF BATHTN BATNF and RAI All other companies BAT Group Parent guarantor Issuer Subsidiary guarantor Subsidiary guarantor Subsidiary guarantors Non-guarantor subsidiaries Eliminations Consolidated £m £m £m £m £m £m £m £m Net cash (used in)/generated from operating activities (23 ) — (8 ) 20 — 4,598 23 4,610 Net cash generated from/(used in) investing activities 24 — 406 2,811 — (3,788 ) (93 ) (640 ) Net cash generated from/(used in) financing activities — — 2,073 (2,813 ) — 2,486 (5,975 ) (4,229 ) Net cash flows generated from/(used in) operating, investing and financing activities 1 — 2,471 18 — 3,296 (6,045 ) (259 ) Differences on exchange 1 — (42 ) — — 221 — 180 Increase/(decrease) in net cash and cash equivalents in the year 2 — 2,429 18 — 3,517 (6,045 ) (79 ) Net cash and cash equivalents at 1 January* 3 — 261 — — 1,466 — 1,730 Net cash and cash equivalents at 31 December 5 — 2,690 18 — 4,983 (6,045 ) 1,651 |
Accounting Policy Changes and_2
Accounting Policy Changes and Regional Restructure (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Initial Application Of Standards Or Interpretations [Abstract] | |
Summary of Implementation of IFRS 15 and IFRS 9 | 31 December 2017 Impact of IFRS 9 01 Jan 2018 Reported Adoption of IFRS 15 Revised Financial assets reclass Expected loss impairment Revised for IFRS 9 £m £m £m £m £m £m Assets Non-current assets Deferred tax assets 317 16 333 - 7 340 Trade and other receivables 756 - 756 (2 ) - 754 Investments held at fair value 42 - 42 2 - 44 Other 125,957 - 125,957 - - 125,957 Total non-current assets 127,072 16 127,088 - 7 127,095 Current assets Trade and other receivables 4,053 - 4,053 (144 ) (45 ) 3,864 Investments held at fair value 65 - 65 144 - 209 Other 9,848 - 9,848 - - 9,848 Total current assets 13,966 - 13,966 - (45 ) 13,921 Total assets 141,038 16 141,054 - (38 ) 141,016 Equity Capital and reserves Share capital 614 - 614 - - 614 Share premium, capital redemption and merger reserves 26,602 - 26,602 - - 26,602 Other reserves (3,395 ) 3 (3,392 ) (9 ) - (3,401 ) Retained earnings 36,983 (48 ) 36,935 9 (38 ) 36,906 Owners of the parent 60,804 (45 ) 60,759 - (38 ) 60,721 Non-controlling interests 222 - 222 - - 222 Total equity 61,026 (45 ) 60,981 - (38 ) 60,943 Liabilities Non-current liabilities Other 64,468 - 64,468 - - 64,468 Total non-current liabilities 64,468 - 64,468 - - 64,468 Current liabilities Trade and other payables 8,847 61 8,908 - - 8,908 Other 6,697 - 6,697 - - 6,697 Total current liabilities 15,544 61 15,605 - - 15,605 Total equity and liabilities 141,038 16 141,054 - (38 ) 141,016 |
Disclosure of Implementation of IFRS 16 | The anticipated impact of the new Standard to the Group’s balance sheet at 1 January 2019, and a reconciliation to reported leasing commitments in note 28, is shown below: £m Minimum lease commitments as disclosed in note 28 690 Additional commitments on the exercise of options 28 Low value leases and short-term leases excluded (24 ) Discounted to present value (132 ) To be capitalised as lease liabilities at 1 January 2019 562 Prepaid leases reclassified from receivables 3 To be capitalised as right-to-use assets at 1 January 2019 565 |
Accounting policies - Additiona
Accounting policies - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Accounting Policies [Line Items] | |||
Impairment charge | £ 194 | £ 12 | |
Property Plant And Equipment Depreciation Rates | 5.00% | ||
Profit for the year | £ 6,210 | £ 4,839 | |
Noncurrent assets | 133,687 | ||
Noncurrent liabilities | 64,325 | ||
I F R S16 | |||
Disclosure Of Accounting Policies [Line Items] | |||
Profit for the year | 11 | ||
Noncurrent assets | 551 | 564 | |
Noncurrent liabilities | £ 558 | £ 564 | |
Top of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 25.00% | 7.00% | |
Bottom of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 3.00% | 3.00% | |
Cigarette Making Machinery | |||
Disclosure Of Accounting Policies [Line Items] | |||
Estimates of useful economic lives | 20-year | 14 years | |
Impairment charge | £ 66 | ||
Property Plant And Equipment Depreciation Rates | 5.00% | ||
Cigarette Making Machinery | Top of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 7.00% | ||
Cigarette Making Machinery | Bottom of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 3.00% | ||
Freehold Land or Assets Classified as Held-for-sale | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 0.00% | ||
Freehold and Leasehold Property | Top of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 4.00% | ||
Freehold and Leasehold Property | Bottom of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Property Plant And Equipment Depreciation Rates | 2.50% | ||
Reynolds American Inc. | |||
Disclosure Of Accounting Policies [Line Items] | |||
Profit for the year | £ 1,261 | 4,457 | |
Reynolds American Inc. | Cigarette Making Machinery | |||
Disclosure Of Accounting Policies [Line Items] | |||
Estimates of useful economic lives | 20-year | 30 years | |
Impairment charge | £ 13 | ||
Trade Debtors | |||
Disclosure Of Accounting Policies [Line Items] | |||
Decrease in trade receivable | £ 45 | ||
Other Trademarks and Similar Assets | Top of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Intangible assets, remaining useful lives | 20 years | ||
Computer Software | Top of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Intangible assets, remaining useful lives | five years | ||
Computer Software | Bottom of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Intangible assets, remaining useful lives | three years | ||
Global Software Solutions | Top of Range | |||
Disclosure Of Accounting Policies [Line Items] | |||
Intangible assets, remaining useful lives | ten years | ||
IFRS 15 Revenue | |||
Disclosure Of Accounting Policies [Line Items] | |||
Decrease in revenue | £ 664 | 621 | |
IFRS 15 Revenue | Timing of Recognition of Certain Payments to Indirect Customers | |||
Disclosure Of Accounting Policies [Line Items] | |||
Decrease in revenue | £ 64 | £ 0 | |
Adoption Of IFRS 9 | |||
Disclosure Of Accounting Policies [Line Items] | |||
Impairment of financial assets | £ 38 |
Segmental Analyses - Additional
Segmental Analyses - Additional Information (Details) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018GBP (£)Segment | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | ||
Disclosure Of Geographical Areas [Line Items] | ||||
Number of reportable segment | Segment | 4 | |||
Profit (loss) from continuing operations | £ 9,313 | £ 4,655 | ||
Revenue from operations | [1] | 24,492 | 14,130 | |
Noncurrent assets | 133,687 | |||
Goodwill | 46,163 | £ 44,147 | ||
Investments in associates and joint ventures | 1,737 | |||
Associates And Joint Ventures | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue from operations | 7,235 | 14,085 | 16,491 | |
Noncurrent assets | 1,225 | 1,127 | ||
Investments in associates and joint ventures | 1,737 | 1,577 | 9,507 | |
ITC Ltd. | Associates And Joint Ventures | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Investments in associates and joint ventures | 1,682 | 1,527 | ||
United States | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue from operations | 9,495 | |||
RAI | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue from operations | 5,525 | 9,224 | ||
RAI | United States | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue from operations | 9,506 | 4,160 | ||
Noncurrent assets | 113,935 | 107,154 | ||
Constant Rates | Previously Stated | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Profit (loss) from continuing operations | £ 10,924 | £ 7,605 | £ 5,197 | |
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Segmental Analyses - Disclosure
Segmental Analyses - Disclosure of Revenues at Current Rates and Revenues Translated (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | [1] | £ 24,492 | £ 14,130 | |
Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | [1] | £ 19,564 | ||
Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 180 | |||
Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 258 | |||
Constant Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 25,760 | |||
Constant Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 18,606 | |||
Exchange | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | (1,448) | |||
Exchange | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 700 | |||
Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 24,312 | |||
Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 19,306 | |||
United States | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 9,495 | |||
United States | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,160 | |||
United States | Constant Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 9,838 | |||
United States | Constant Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 3,958 | |||
United States | Exchange | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | (343) | |||
United States | Exchange | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 202 | |||
United States | Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 9,495 | |||
United States | Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,160 | |||
APME | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,882 | 4,769 | ||
APME | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,973 | |||
APME | Constant Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 5,250 | |||
APME | Constant Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,776 | |||
APME | Exchange | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | (368) | |||
APME | Exchange | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 197 | |||
APME | Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,882 | |||
APME | Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,973 | |||
AMSSA | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,111 | 4,038 | ||
AMSSA | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,323 | |||
AMSSA | Constant Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,560 | |||
AMSSA | Constant Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,365 | |||
AMSSA | Exchange | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | (449) | |||
AMSSA | Exchange | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 42 | |||
AMSSA | Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,111 | |||
AMSSA | Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 4,323 | |||
ENA | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 6,004 | £ 5,323 | ||
ENA | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 6,108 | |||
ENA | Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 180 | |||
ENA | Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 258 | |||
ENA | Constant Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 6,112 | |||
ENA | Constant Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 5,507 | |||
ENA | Exchange | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | (288) | |||
ENA | Exchange | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | 343 | |||
ENA | Current Rates | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | £ 5,824 | |||
ENA | Current Rates | Restatement Adjustments | ||||
Disclosure Of Geographical Areas [Line Items] | ||||
Revenue | £ 5,850 | |||
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Segmental Analyses - Disclosu_2
Segmental Analyses - Disclosure of Operating Segment Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | £ 9,313 | £ 4,655 | |
Net finance costs | (1,381) | £ (1,094) | (637) |
Share of post-tax results of associates and joint ventures | 419 | 2,227 | |
Profit/(loss) before taxation | 8,351 | 6,245 | |
Taxation on ordinary activities | (2,141) | (1,406) | |
Profit for the year | 6,210 | 4,839 | |
Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 6,412 | ||
Net finance costs | (1,094) | ||
Share of post-tax results of associates and joint ventures | 24,209 | ||
Profit/(loss) before taxation | 29,527 | ||
Taxation on ordinary activities | 8,129 | ||
Profit for the year | 37,656 | ||
Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 10,347 | 5,480 | |
Net finance costs | (1,385) | (529) | |
Share of post-tax results of associates and joint ventures | 387 | 1,327 | |
Profit/(loss) before taxation | 9,349 | 6,278 | |
Taxation on ordinary activities | (2,364) | (1,473) | |
Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 7,929 | ||
Net finance costs | (889) | ||
Share of post-tax results of associates and joint ventures | 1,012 | ||
Profit/(loss) before taxation | 8,052 | ||
Taxation on ordinary activities | (2,091) | ||
Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (1,034) | (825) | |
Net finance costs | 4 | (108) | |
Share of post-tax results of associates and joint ventures | 32 | 900 | |
Profit/(loss) before taxation | (998) | (33) | |
Taxation on ordinary activities | 223 | 67 | |
Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (1,517) | ||
Net finance costs | (205) | ||
Share of post-tax results of associates and joint ventures | 23,197 | ||
Profit/(loss) before taxation | 21,475 | ||
Taxation on ordinary activities | 10,220 | ||
United States | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 1,880 | ||
United States | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 23,819 | ||
United States | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 991 | ||
United States | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 624 | ||
United States | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 889 | ||
United States | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 23,195 | ||
APME | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 416 | 344 | |
APME | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 413 | ||
APME | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 384 | 333 | |
APME | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 384 | ||
APME | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 32 | 11 | |
APME | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 29 | ||
ENA | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 3 | 3 | |
ENA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | (23) | ||
ENA | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 3 | 3 | |
ENA | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 4 | ||
ENA | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | (27) | ||
Operating segments [member] | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 4,675 | ||
Operating segments [member] | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 6,412 | ||
Operating segments [member] | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 5,480 | ||
Operating segments [member] | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 7,929 | ||
Operating segments [member] | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (805) | ||
Operating segments [member] | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (1,517) | ||
Operating segments [member] | United States | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 4,006 | ||
Operating segments [member] | United States | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,165 | ||
Operating segments [member] | United States | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 4,511 | ||
Operating segments [member] | United States | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,928 | ||
Operating segments [member] | United States | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (505) | ||
Operating segments [member] | United States | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (763) | ||
Operating segments [member] | APME | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,858 | 1,774 | |
Operating segments [member] | APME | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,902 | ||
Operating segments [member] | APME | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,948 | 1,972 | |
Operating segments [member] | APME | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 2,049 | ||
Operating segments [member] | APME | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (90) | (198) | |
Operating segments [member] | APME | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (147) | ||
Operating segments [member] | AMSSA | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,544 | 1,422 | |
Operating segments [member] | AMSSA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,648 | ||
Operating segments [member] | AMSSA | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,738 | 1,684 | |
Operating segments [member] | AMSSA | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,782 | ||
Operating segments [member] | AMSSA | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (194) | (262) | |
Operating segments [member] | AMSSA | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (134) | ||
Operating segments [member] | ENA | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,905 | 1,479 | |
Operating segments [member] | ENA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,697 | ||
Operating segments [member] | ENA | Adjusted Segment Result Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 2,150 | 1,824 | |
Operating segments [member] | ENA | Adjusted Segment Result Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 2,170 | ||
Operating segments [member] | ENA | Current Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (245) | (345) | |
Operating segments [member] | ENA | Current Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (473) | ||
Unallocated amounts [member] | Fox River | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (20) | ||
Unallocated amounts [member] | Current Rates | Fox River | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | £ (20) | ||
Constant Rates | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 10,924 | ||
Net finance costs | (1,415) | ||
Share of post-tax results of associates and joint ventures | 420 | ||
Profit/(loss) before taxation | 9,929 | ||
Taxation on ordinary activities | (2,508) | ||
Constant Rates | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 7,605 | ||
Net finance costs | (833) | ||
Share of post-tax results of associates and joint ventures | 951 | ||
Profit/(loss) before taxation | 7,723 | ||
Taxation on ordinary activities | (2,017) | ||
Constant Rates | United States | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 593 | ||
Constant Rates | APME | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 417 | ||
Constant Rates | APME | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 354 | ||
Constant Rates | ENA | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 3 | ||
Constant Rates | ENA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 4 | ||
Constant Rates | Operating segments [member] | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 7,605 | ||
Constant Rates | Operating segments [member] | United States | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 4,686 | ||
Constant Rates | Operating segments [member] | United States | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,827 | ||
Constant Rates | Operating segments [member] | APME | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 2,099 | ||
Constant Rates | Operating segments [member] | APME | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,962 | ||
Constant Rates | Operating segments [member] | AMSSA | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,922 | ||
Constant Rates | Operating segments [member] | AMSSA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 1,799 | ||
Constant Rates | Operating segments [member] | ENA | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 2,217 | ||
Constant Rates | Operating segments [member] | ENA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 2,017 | ||
Translation Exchange | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (577) | ||
Net finance costs | 30 | ||
Share of post-tax results of associates and joint ventures | (33) | ||
Profit/(loss) before taxation | (580) | ||
Taxation on ordinary activities | 144 | ||
Translation Exchange | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 324 | ||
Net finance costs | (56) | ||
Share of post-tax results of associates and joint ventures | 61 | ||
Profit/(loss) before taxation | 329 | ||
Taxation on ordinary activities | (74) | ||
Translation Exchange | United States | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 31 | ||
Translation Exchange | APME | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | (33) | ||
Translation Exchange | APME | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Share of post-tax results of associates and joint ventures | 30 | ||
Translation Exchange | Operating segments [member] | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 324 | ||
Translation Exchange | Operating segments [member] | United States | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (175) | ||
Translation Exchange | Operating segments [member] | United States | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 101 | ||
Translation Exchange | Operating segments [member] | APME | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (151) | ||
Translation Exchange | Operating segments [member] | APME | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | 87 | ||
Translation Exchange | Operating segments [member] | AMSSA | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (184) | ||
Translation Exchange | Operating segments [member] | AMSSA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | (17) | ||
Translation Exchange | Operating segments [member] | ENA | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | £ (67) | ||
Translation Exchange | Operating segments [member] | ENA | Restatement Adjustments | |||
Disclosure Of Operating Segments [Line Items] | |||
Profit (loss) from continuing operations | £ 153 |
Segmental Analyses - Summary of
Segmental Analyses - Summary of Depreciation Amortisation and Impairment Charges (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | £ 1,038 | £ 902 | £ 607 |
Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 902 | ||
Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 535 | 212 | |
Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 468 | ||
Constant Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 517 | ||
Constant Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 418 | ||
Translation Exchange | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | (14) | ||
Translation Exchange | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 16 | ||
Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 503 | 395 | |
Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 434 | ||
United States | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 443 | ||
United States | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 175 | ||
United States | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 289 | ||
United States | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 116 | ||
United States | Constant Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 158 | ||
United States | Constant Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 57 | ||
United States | Translation Exchange | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | (4) | ||
United States | Translation Exchange | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 2 | ||
United States | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 154 | ||
United States | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 59 | ||
APME | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 127 | 166 | |
APME | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 135 | ||
APME | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 22 | 52 | |
APME | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 24 | ||
APME | Constant Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 111 | ||
APME | Constant Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 109 | ||
APME | Translation Exchange | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | (6) | ||
APME | Translation Exchange | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 2 | ||
APME | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 105 | 114 | |
APME | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 111 | ||
AMSSA | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 216 | 169 | |
AMSSA | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 134 | ||
AMSSA | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 115 | 48 | |
AMSSA | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 32 | ||
AMSSA | Constant Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 100 | ||
AMSSA | Constant Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 99 | ||
AMSSA | Translation Exchange | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 1 | ||
AMSSA | Translation Exchange | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 3 | ||
AMSSA | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 101 | 121 | |
AMSSA | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 102 | ||
ENA | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 252 | 272 | |
ENA | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 458 | ||
ENA | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 109 | 112 | |
ENA | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 296 | ||
ENA | Constant Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 148 | ||
ENA | Constant Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 153 | ||
ENA | Translation Exchange | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | (5) | ||
ENA | Translation Exchange | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | 9 | ||
ENA | Current Rates | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | £ 143 | £ 160 | |
ENA | Current Rates | Restatement Adjustments | |||
Disclosure Of Depreciation Amortization And Impairment [Line Items] | |||
Depreciation, amortisation and impairment | £ 162 |
Segmental Analyses - Disclosu_3
Segmental Analyses - Disclosure of Geographical Information of External Revenue (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
External revenue | [1] | £ 24,492 | £ 14,130 | |
Intangible assets | 124,013 | £ 117,785 | 12,117 | |
Property, plant and equipment | 5,166 | 4,882 | 3,661 | |
Investments in associates and joint ventures | 1,737 | |||
Restatement Adjustments | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
External revenue | [1] | 19,564 | ||
Intangible assets | 117,785 | |||
Property, plant and equipment | 4,882 | |||
Investments in associates and joint ventures | 1,577 | |||
United Kingdom | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
External revenue | 184 | 266 | ||
Intangible assets | 529 | |||
Property, plant and equipment | 404 | |||
United Kingdom | Restatement Adjustments | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
External revenue | 203 | |||
Intangible assets | 514 | |||
Property, plant and equipment | 406 | |||
All foreign countries | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
External revenue | 24,308 | £ 13,864 | ||
Intangible assets | 123,484 | |||
Property, plant and equipment | 4,762 | |||
Investments in associates and joint ventures | £ 1,737 | |||
All foreign countries | Restatement Adjustments | ||||
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items] | ||||
External revenue | 19,361 | |||
Intangible assets | 117,271 | |||
Property, plant and equipment | 4,476 | |||
Investments in associates and joint ventures | £ 1,577 | |||
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Profit from Operations - Summar
Profit from Operations - Summary of Employee Benefit Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit From Operations [Abstract] | |||
Wages and salaries | £ 2,463 | £ 2,131 | £ 1,882 |
Social security costs | 207 | 216 | 207 |
Other pension and retirement benefit costs (note 12) | 212 | 215 | 101 |
Share-based payments – equity and cash-settled (note 25) | 123 | 117 | 84 |
Employee benefit costs | £ 3,005 | £ 2,679 | £ 2,274 |
Profit from Operations - Summ_2
Profit from Operations - Summary of Depreciation Amortisation and Impairment Costs (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation, amortisation and impairment costs | £ 1,038 | £ 902 | £ 607 |
Property, plant and equipment [member] | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Depreciation and impairment of property, plant and equipment | 550 | 379 | 377 |
Other Trademarks and Similar Assets | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Amortisation and impairment of intangibles | 377 | 383 | 149 |
Other Intangibles | |||
Depreciation Amortisation And Impairment Costs [Line Items] | |||
Amortisation and impairment of intangibles | £ 111 | £ 140 | £ 81 |
Profit from Operations - Deprec
Profit from Operations - Depreciation, Amortisation and Impairment Costs - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Operating Expenses [Line Items] | ||
Property Plant And Equipment Depreciation Rates | 5.00% | |
Increase decrease in depreciation expense | £ 53 | |
Bottom of Range | ||
Other Operating Expenses [Line Items] | ||
Property Plant And Equipment Depreciation Rates | 3.00% | 3.00% |
Top of Range | ||
Other Operating Expenses [Line Items] | ||
Property Plant And Equipment Depreciation Rates | 25.00% | 7.00% |
Profit from Operations - Summ_3
Profit from Operations - Summary of Other Operating Expenses (Details) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Operating Expenses [Line Items] | |||
Research and development expenses (excluding employee benefit costs and depreciation) | £ 105,000,000 | £ 80,000,000 | £ 53,000,000 |
Exchange differences | (15,000,000) | (6,000,000) | (2,000,000) |
Hedge ineffectiveness within operating profit | (8,000,000) | ||
Minimum lease payments | 690,000,000 | ||
Total audit fees expense | 15,300,000 | 17,800,000 | 9,200,000 |
Fees payable for other services | 100,000 | 200,000 | 1,500,000 |
Property, Plant and Equipment | |||
Other Operating Expenses [Line Items] | |||
Minimum lease payments | 61,000,000 | 41,000,000 | 20,000,000 |
Property | |||
Other Operating Expenses [Line Items] | |||
Minimum lease payments | 110,000,000 | 85,000,000 | 51,000,000 |
KPMG LLP | Parent Company and Group Audit | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 6,300,000 | 6,300,000 | 2,000,000 |
KPMG LLP Firms and Associates | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 15,100,000 | 17,600,000 | 9,200,000 |
Fees payable for other services | 10,100,000 | 12,300,000 | 2,200,000 |
KPMG LLP Firms and Associates | Audit Related Assurance Services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 9,400,000 | 8,000,000 | 200,000 |
KPMG LLP Firms and Associates | Other Assurance Services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 300,000 | 4,100,000 | 100,000 |
KPMG LLP Firms and Associates | Tax Advisory Services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 200,000 | ||
KPMG LLP Firms and Associates | Tax Compliance | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 200,000 | 300,000 | |
KPMG LLP Firms and Associates | Audit of defined benefit schemes of the Company | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 400,000 | ||
KPMG LLP Firms and Associates | Other Non Audit Services | |||
Other Operating Expenses [Line Items] | |||
Fees payable for other services | 1,400,000 | ||
KPMG LLP Firms and Associates | Local Statutory and Group Reporting Audits | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | 8,800,000 | 11,300,000 | £ 7,200,000 |
Other Firms | |||
Other Operating Expenses [Line Items] | |||
Total audit fees expense | £ 200,000 | £ 200,000 |
Profit from Operations - Other
Profit from Operations - Other Operating Expenses - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, audit fees | £ 15.3 | £ 17.8 | £ 9.2 |
Remuneration of auditor, all other fees | 0.1 | 0.2 | 1.5 |
Remuneration of auditor, other audit-related fees | 0.4 | 0.5 | 0.2 |
Remuneration of auditor, tax fees | 0 | 0.2 | 0.5 |
Research and development costs including employee benefit costs and depreciation | 258 | 191 | 144 |
Audit Related Assurance Services | Reynolds American Inc. | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, all other fees | 7.7 | ||
Audit Related Assurance Services | Sarbanes-Oxley | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, audit fees | 8.7 | 0 | 0 |
Other Assurance Services | Reynolds American Inc. | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, all other fees | 3.5 | ||
KPMG LLP Firms and Associates | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor | 25.2 | 29.9 | 11.4 |
Remuneration of auditor, audit fees | 15.1 | 17.6 | 9.2 |
Remuneration of auditor, all other fees | 10.1 | 12.3 | 2.2 |
KPMG LLP Firms and Associates | SEC Regulations | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor | 25.2 | 30.1 | 11.4 |
KPMG LLP Firms and Associates | Audit Related Assurance Services | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, all other fees | 9.4 | 8 | 0.2 |
KPMG LLP Firms and Associates | Other Assurance Services | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, all other fees | 0.3 | 4.1 | 0.1 |
Accounting firms | |||
Other Operating Expenses [Line Items] | |||
Remuneration of auditor, audit fees | £ 24.7 | £ 29.2 | £ 9.2 |
Profit from Operations - Master
Profit from Operations - Master Settlements Agreement - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Profit From Operations [Line Items] | ||||||
Settlement expenses | £ 164.4 | $ 209.4 | ||||
Master Settlement Agreement and State Settlement Agreements | ||||||
Profit From Operations [Line Items] | ||||||
Settlement expenses | 2,741 | $ 2,856 | ||||
Settlement cash payments | 917 | 4,612 | ||||
Non-Participating Manufacturer Adjustment Claims Related to Period from 2003 to 2012 | Master Settlement Agreement | ||||||
Profit From Operations [Line Items] | ||||||
Increase of income related to payment obligation | $ 1,000 | |||||
Non-Participating Manufacturer Adjustment Claims Related to Period from 2003 to 2012 | Master Settlement Agreement | R.J. Reynolds Tobacco Company | ||||||
Profit From Operations [Line Items] | ||||||
Additional credit recognised | $ 170 | |||||
Non-Participating Manufacturer Adjustment Claims Related to Period from 2004 to 2014 | Non-Participating Manufacturer | R.J. Reynolds Tobacco Company | ||||||
Profit From Operations [Line Items] | ||||||
Additional credit recognised | $ 61 | $ 285 | ||||
Non-Participating Manufacturer Adjustment Claims Related to Period from 2004 to 2019 | Non-Participating Manufacturer | R.J. Reynolds Tobacco Company | ||||||
Profit From Operations [Line Items] | ||||||
Additional credit recognised | 182 | |||||
Non-Participating Manufacturer Adjustment Claims Related to Period from 2004 to 2024 | Non-Participating Manufacturer | R.J. Reynolds Tobacco Company | ||||||
Profit From Operations [Line Items] | ||||||
Additional credit recognised | $ 205 |
Profit from Operations - Summ_4
Profit from Operations - Summary Costs of Integrating Acquired Businesses into Existing Operations (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Costs and Depreciation, Amortisation and Impairment [Line Items] | |||
Employee benefit costs | £ 3,005 | £ 2,679 | £ 2,274 |
Depreciation, amortisation and impairment costs | 1,038 | 902 | 607 |
Other operating expenses | 6,668 | 3,037 | |
Other operating income | (85) | (176) | |
Restructuring and Integration Costs | |||
Employee Benefit Costs and Depreciation, Amortisation and Impairment [Line Items] | |||
Employee benefit costs | 176 | 193 | 240 |
Depreciation, amortisation and impairment costs | 48 | 85 | 64 |
Other operating expenses | 145 | 330 | 325 |
Other operating income | (6) | (8) | (26) |
Business combination integration cost | £ 363 | £ 600 | £ 603 |
Profit from Operations - Restru
Profit from Operations - Restructuring and Integration Costs - Additional Information (Details) - Other Trademarks and Similar Assets - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expense Of Restructuring Activities [Line Items] | |||
Amortisation and impairment of intangibles | £ 377 | £ 383 | £ 149 |
Top of Range | |||
Expense Of Restructuring Activities [Line Items] | |||
Intangibles assets expected useful lives | 20 years |
Profit from Operations - Fox Ri
Profit from Operations - Fox River - Additional Information (Details) € in Millions, $ in Millions | Feb. 10, 2017GBP (£) | Feb. 10, 2017USD ($) | Jul. 31, 2016EUR (€) | Jun. 30, 2017GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) |
Profit From Operations [Line Items] | |||||||
Group's provision | £ 649,000,000 | £ 753,000,000 | £ 793,000,000 | ||||
Windward and Sequana | |||||||
Profit From Operations [Line Items] | |||||||
Assets recognised | 0 | ||||||
Payments received | £ 0 | ||||||
Windward Dividend Claim | |||||||
Profit From Operations [Line Items] | |||||||
Dividend paid to Sequana | € | € 135 | ||||||
Windward Dividend Claim | Windward | |||||||
Profit From Operations [Line Items] | |||||||
Litigation settlement amount | £ 145,000,000 | $ 185 | |||||
Fox River | |||||||
Profit From Operations [Line Items] | |||||||
Claims in relation to environmental clean up costs | 274,000,000 | ||||||
Fox River | N C R Appvion And Windward Prospects | |||||||
Profit From Operations [Line Items] | |||||||
Payments for environmental clean up and legal costs | 30,000,000 | 25,000,000 | 17,000,000 | ||||
Payment for legal costs | 5,000,000 | 7,000,000 | 11,000,000 | ||||
Fox River | N C R Appvion And Windward Prospects | Funding | |||||||
Profit From Operations [Line Items] | |||||||
Devaluation of currency charge net | 20,000,000 | ||||||
Fox River | |||||||
Profit From Operations [Line Items] | |||||||
Group's provision | £ 108,000,000 | £ 138,000,000 | £ 163,000,000 |
Profit from Operations - Othe_2
Profit from Operations - Other Adjusting Items - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | |
Profit From Operations [Line Items] | ||||
Other adjusting items | £ 294 | |||
Litigation expense included in other operating expense | 164.4 | $ 209.4 | ||
Changes in inventories of finished goods and work in progress | (114) | £ (44) | ||
Recognized a gain within finance cost | 45 | |||
South Korea Sales Tax | ||||
Profit From Operations [Line Items] | ||||
Recognized sales tax and penalties | £ 53 | |||
Venezuela | ||||
Profit From Operations [Line Items] | ||||
Impairment of assets | 110 | |||
Agrokor | ||||
Profit From Operations [Line Items] | ||||
Impairment of assets | £ 69 | |||
Reynolds American Inc. | ||||
Profit From Operations [Line Items] | ||||
Changes in inventories of finished goods and work in progress | £ 465 | |||
Engle Progeny Cases | ||||
Profit From Operations [Line Items] | ||||
Litigation expense included in other operating expense | £ 178 |
Net Finance Costs - Summary of
Net Finance Costs - Summary of Net Finance Costs/(Income) (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | |
Disclosure of Finance Income and Costs [Line Items] | ||||
Interest expense | £ 1,593 | £ 1,081 | £ 645 | |
Facility fees | 13 | 13 | 5 | |
Interest related to adjusting tax payables | 41 | 43 | 25 | |
Loss on bond redemption | 101 | $ 130 | ||
Fair value changes on derivative financial instruments and hedged items | (154) | (149) | (458) | |
Hedge ineffectiveness | 9 | (18) | ||
Venezuela hyperinflation (note 4(b)) | (45) | |||
Exchange differences on financial liabilities | 36 | 47 | 363 | |
Finance costs | 1,484 | 1,197 | 681 | |
Interest under the effective interest method | (68) | (83) | (68) | |
Dividend income | (1) | |||
Exchange differences on financial assets | (35) | (19) | 42 | |
Finance income | (103) | (103) | (44) | |
Net finance costs | £ 1,381 | 1,094 | £ 637 | |
RAI | ||||
Disclosure of Finance Income and Costs [Line Items] | ||||
Acquisition of RAI | £ 153 |
Net Finance Costs - Additional
Net Finance Costs - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | |
Disclosure of Finance Income and Costs [Line Items] | ||||
Interest related to adjusting tax payables | £ 41 | £ 43 | £ 25 | |
Monetary gain (loss) | 45 | |||
Hedge ineffectiveness | (9) | £ 18 | ||
Bond redeemed amount | $ | $ 700 | |||
Bond maturity date | Nov. 15, 2018 | Nov. 15, 2018 | ||
Loss on bond redemption | £ 101 | $ 130 | ||
RAI | ||||
Disclosure of Finance Income and Costs [Line Items] | ||||
Pre-financing costs related to acquisition of shares | 153 | |||
Interest on tax payables including FIIGLO | ||||
Disclosure of Finance Income and Costs [Line Items] | ||||
Interest related to adjusting tax payables | 25 | £ 25 | £ 25 | |
Overseas Withholding Tax | ||||
Disclosure of Finance Income and Costs [Line Items] | ||||
Interest related to adjusting tax payables | £ 12 |
Associates and Joint Ventures -
Associates and Joint Ventures - Schedule of Profit Loss of Associates and Joint Ventures Accounted for Using Equity Method (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||
Revenue | [1] | £ 24,492 | £ 14,130 | |
Profit from operations | 9,313 | 4,655 | ||
Net finance costs | (1,381) | £ (1,094) | (637) | |
Profit before taxation | 8,351 | 6,245 | ||
Taxation on ordinary activities | (2,141) | (1,406) | ||
Profit on ordinary activities after taxation | 6,032 | 4,648 | ||
Non-controlling interests | 178 | 191 | ||
Profit for the year | 6,210 | 4,839 | ||
Associates And Joint Ventures | ||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||
Revenue | 7,235 | 14,085 | 16,491 | |
Profit from operations | 2,128 | 4,342 | 9,379 | |
Net finance costs | (8) | (279) | (477) | |
Profit before taxation | 2,120 | 4,063 | 8,902 | |
Taxation on ordinary activities | (678) | (1,441) | (3,280) | |
Profit on ordinary activities after taxation | 1,442 | 2,622 | 5,622 | |
Non-controlling interests | (24) | (22) | (17) | |
Profit for the year | 1,418 | 2,600 | 5,605 | |
– adjusted share of post-tax results of associates and joint ventures | 1,308 | 2,785 | 3,461 | |
– issue of shares and change in shareholding | 75 | 98 | 36 | |
– gain on disposal of assets | 2,231 | |||
– other | 35 | (283) | (123) | |
Groups Share in Associates and Joint Ventures | ||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||
Revenue | 2,058 | 4,794 | 5,997 | |
Profit from operations | 630 | 24,854 | 3,740 | |
Net finance costs | (3) | (116) | (200) | |
Profit before taxation | 627 | 24,738 | 3,540 | |
Taxation on ordinary activities | (201) | (522) | (1,308) | |
Profit on ordinary activities after taxation | 426 | 24,216 | 2,232 | |
Non-controlling interests | (7) | (7) | (5) | |
Profit for the year | 419 | 24,209 | 2,227 | |
– adjusted share of post-tax results of associates and joint ventures | 387 | 1,012 | 1,327 | |
– issue of shares and change in shareholding | 22 | 29 | 11 | |
– gain on deemed divestment of RAI | 23,288 | |||
– gain on disposal of assets | 941 | |||
– other | £ 10 | £ (120) | £ (52) | |
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Associates and Joint Ventures_2
Associates and Joint Ventures - Additional Information (Details) $ in Millions | Jul. 25, 2017 | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2015 |
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Deferred tax charges | £ (5,000,000) | £ 14,000,000 | ||||||
Tobacco litigation charges | £ 164,400,000 | $ 209.4 | ||||||
Associates And Joint Ventures | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Ownership interest acquired | 57.80% | |||||||
Groups Share in Associates and Joint Ventures | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Transaction costs | £ 33,000,000 | 0 | ||||||
Deferred tax charges | 18,000,000 | 0 | ||||||
Restructuring charges | 14,000,000 | 7,000,000 | ||||||
Tobacco litigation charges | 32,000,000 | 17,000,000 | ||||||
Income related to NPM adjustment | 4,000,000 | 2,000,000 | ||||||
Termination of manufacturing agreement | 18,000,000 | |||||||
Subsidiaries | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Gains (losses) on remeasuring available-for-sale financial assets, before tax | (27,000,000) | |||||||
ITC Ltd. | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Percentage of interest in associate | 29.57% | 29.57% | ||||||
Gain on sale of interest in associate | £ 22,000,000 | £ 29,000,000 | £ 11,000,000 | |||||
ITC Ltd. | Associates And Joint Ventures | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Percentage of interest in associate | 29.57% | 29.57% | 29.71% | 29.71% | 29.89% | 29.89% | 30.06% | |
ITC Ltd. | Groups Share in Associates and Joint Ventures | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Adjusting gain recognised in respect of release of certain provision related to tax claim | £ 10,000,000 | |||||||
Reynolds American Inc. | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Gain on sale of international rights | $ | $ 4,861 | |||||||
Share of net gain sale of assets | £ 941,000,000 | |||||||
Transaction costs | $ | $ 125 | 5 | ||||||
Deferred tax charges | 61,000,000 | |||||||
Restructuring charges | $ | 79 | 36 | ||||||
Tobacco litigation charges | $ | 162 | 86 | ||||||
Income related to NPM adjustment | $ | 17 | 6 | ||||||
Termination of manufacturing agreement | $ | 90 | |||||||
Financing costs | $ | $ 243 | |||||||
Reynolds American Inc. | Other Temporary Differences | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Deferred tax charges | $ | $ 51 | |||||||
Reynolds American Inc. | Groups Share in Associates and Joint Ventures | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Transaction costs | 1,000,000 | |||||||
Financing costs | £ 47,000,000 | |||||||
Groups Share in Associates and Joint Ventures | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Gain on divestment of RAI | £ 23,288,000,000 |
Associates and Joint Ventures_3
Associates and Joint Ventures - Summary of Group's Share of the Result of Associates and Joint Ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
Profit on ordinary activities after taxation attributable to owners of the Parent | £ 6,032 | £ 4,648 | |
Other comprehensive income: | |||
Total comprehensive income for the year, net of tax | 9,424 | 6,426 | |
Groups Share in Associates and Joint Ventures | |||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
Profit on ordinary activities after taxation attributable to owners of the Parent | 419 | £ 24,209 | 2,227 |
Other comprehensive income: | |||
Items that may be reclassified to profit & loss | (38) | (918) | 1,415 |
Items that will not be reclassified to profit & loss | 6 | 25 | 20 |
Groups Share in Associates and Joint Ventures | Investments Accounted for Using Equity Method | |||
Other comprehensive income: | |||
Total comprehensive income for the year, net of tax | £ 387 | £ 23,316 | £ 3,662 |
Associates and Joint Ventures_4
Associates and Joint Ventures - Summary of Financial Information of the Group's Associates and Joint Ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | [1] | £ 24,492 | £ 14,130 | |
Profit/(loss) before taxation | 8,351 | 6,245 | ||
Post-tax results of associates and joint ventures | 6,210 | 4,839 | ||
Other comprehensive income | 3,214 | 1,587 | ||
Total comprehensive income | 9,424 | 6,426 | ||
Associates And Joint Ventures | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 7,235 | £ 14,085 | 16,491 | |
Profit/(loss) before taxation | 2,120 | 4,063 | 8,902 | |
Post-tax results of associates and joint ventures | 1,418 | 2,600 | 5,605 | |
Other comprehensive income | (110) | (738) | 3,659 | |
Total comprehensive income | 1,308 | 1,862 | 9,264 | |
ITC Ltd. | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 5,072 | 6,607 | 5,350 | |
Profit/(loss) before taxation | 2,059 | 2,054 | 1,743 | |
Post-tax results of associates and joint ventures | 1,373 | 1,362 | 1,114 | |
Other comprehensive income | (110) | (135) | 712 | |
Total comprehensive income | 1,263 | 1,227 | 1,826 | |
Other Associates | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 2,163 | 1,953 | 1,917 | |
Profit/(loss) before taxation | 61 | (8) | 48 | |
Post-tax results of associates and joint ventures | 45 | (23) | 34 | |
Other comprehensive income | (8) | (178) | ||
Total comprehensive income | £ 45 | (31) | (144) | |
Reynolds American Inc. | ||||
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items] | ||||
Revenue | 5,525 | 9,224 | ||
Profit/(loss) before taxation | 2,017 | 7,111 | ||
Post-tax results of associates and joint ventures | 1,261 | 4,457 | ||
Other comprehensive income | (595) | 3,125 | ||
Total comprehensive income | £ 666 | £ 7,582 | ||
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Taxation on Ordinary Activiti_3
Taxation on Ordinary Activities - Summary of Taxation on Ordinary Activities (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Taxation on Ordinary Activities [Line Items] | |||
Total current tax | £ 2,515 | £ 1,402 | |
– adjustments in respect of prior periods | (11) | 13 | |
Deferred tax | (374) | 4 | |
– deferred tax relating to origination and reversal of temporary differences | (304) | 4 | |
– deferred tax relating to changes in tax rates | (70) | £ (9,620) | |
Taxation on ordinary activities | 2,141 | 1,406 | |
Restatement Adjustments | |||
Disclosure Of Taxation on Ordinary Activities [Line Items] | |||
Total current tax | 1,643 | ||
– adjustments in respect of prior periods | 2 | ||
Deferred tax | (9,772) | ||
– deferred tax relating to origination and reversal of temporary differences | (152) | ||
– deferred tax relating to changes in tax rates | (9,620) | ||
Taxation on ordinary activities | (8,129) | ||
United Kingdom | |||
Disclosure Of Taxation on Ordinary Activities [Line Items] | |||
Total current tax | 60 | 7 | |
– current year tax expense | 66 | 7 | |
– adjustments in respect of prior periods | (6) | ||
United Kingdom | Restatement Adjustments | |||
Disclosure Of Taxation on Ordinary Activities [Line Items] | |||
Total current tax | 26 | ||
– current year tax expense | 26 | ||
All foreign countries | |||
Disclosure Of Taxation on Ordinary Activities [Line Items] | |||
Total current tax | 2,455 | 1,395 | |
– current year tax expense | 2,460 | 1,382 | |
– adjustments in respect of prior periods | £ (5) | £ 13 | |
All foreign countries | Restatement Adjustments | |||
Disclosure Of Taxation on Ordinary Activities [Line Items] | |||
Total current tax | 1,617 | ||
– current year tax expense | 1,615 | ||
– adjustments in respect of prior periods | £ 2 |
Taxation on Ordinary Activiti_4
Taxation on Ordinary Activities - Additional Information (Details) £ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2018GBP (£) | Dec. 31, 2018GBP (£)CorporateGroup | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | Dec. 31, 2014GBP (£) | |
Income Tax Disclosure [Line Items] | ||||||
Corporation tax rate | 19.00% | 20.00% | ||||
Change to the deferred tax liabilities due to the effect of change in tax rate | £ 79 | |||||
Charge on withholding taxes | 55 | |||||
Deferred tax relating to changes in tax rates | (70) | £ (9,620) | ||||
Additional deferred tax charge | (5) | £ 14 | ||||
Tax on adjusting items | 199 | 454 | 128 | |||
Non-controlling interests' share of the adjusting items net of tax | £ 6 | 4 | 1 | |||
Federal Tax Rate | ||||||
Income Tax Disclosure [Line Items] | ||||||
Corporation tax rate | 21.00% | |||||
Reynolds American Inc. | ||||||
Income Tax Disclosure [Line Items] | ||||||
Deemed repatriation tax | 34 | |||||
Release of deferred tax on unremitted earnings of associates | £ 180 | |||||
Share of net gain sale of assets | 941 | |||||
Additional deferred tax charge | 61 | |||||
Restatement Adjustments | ||||||
Income Tax Disclosure [Line Items] | ||||||
Corporation tax rate | 19.00% | |||||
Deferred tax relating to changes in tax rates | £ (9,620) | |||||
Release of deferred tax on unremitted earnings of associates | 180 | |||||
Additional deferred tax charge | (72) | |||||
Interest on tax payables including FIIGLO | ||||||
Income Tax Disclosure [Line Items] | ||||||
Number of corporate groups in FII GLO | CorporateGroup | 25 | |||||
Litigation settlement amount ordered by court | £ 1,200 | |||||
Litigation settlement amount, applying Prudential judgement | £ 600 | |||||
Litigation settlement amount received | £ 1,224 | |||||
Tax on litigation settlement | £ 261 | |||||
Tax rate on litigation settlement | 45.00% | |||||
Litigation settlement amount received after tax | £ 963 | |||||
Interest related to FII GLO | £ 25 | £ 25 | £ 25 |
Taxation on Ordinary Activiti_5
Taxation on Ordinary Activities - Summary of Factors Affecting the Taxation Charge (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Reconciliation Of Effective Tax Rate [Line Items] | |||
Profit before taxation | £ 8,351 | £ 6,245 | |
Less: share of post-tax results of associates and joint ventures | (419) | (2,227) | |
Profit net of tax | 7,932 | 4,018 | |
Tax at 19% (2017: 19%; 2016: 20%) on the above | 1,507 | 804 | |
Tax at standard rates other than UK corporation tax rate | 384 | 93 | |
Other national tax charges | 204 | 74 | |
Permanent differences | 7 | 143 | |
Overseas tax on distributions | 41 | ||
Overseas withholding taxes | 155 | 200 | |
Double taxation relief on UK profits | (35) | (8) | |
Unutilised/(utilised) tax losses | 5 | 32 | |
Adjustments in respect of prior periods | (11) | 13 | |
Deferred tax relating to changes in tax rates | (70) | £ (9,620) | |
Additional net deferred tax (credits)/charges | (5) | 14 | |
Taxation on ordinary activities | £ 2,141 | £ 1,406 | |
Corporation tax rate | 19.00% | 20.00% | |
Tax at standard rates other than UK corporation tax rate, percentage | 4.80% | 2.30% | |
Other national tax charges, percentage | 2.60% | 1.90% | |
Permanent differences, percentage | 0.10% | 3.60% | |
Overseas tax on distributions, percentage | 1.00% | ||
Overseas withholding taxes, percentage | 1.90% | 5.00% | |
Double taxation relief on UK profits, percentage | (0.40%) | (0.20%) | |
Unutilised/(utilised) tax losses, percentage | 0.10% | 0.80% | |
Adjustments in respect of prior periods, percentage | (0.10%) | 0.30% | |
Deferred tax relating to changes in tax rates, percentage | (0.90%) | ||
Additional net deferred tax (credits)/charges, percentage | (0.10%) | 0.30% | |
Tax, net of factors affecting the tax rate, percentage | 27.00% | 35.00% | |
Restatement Adjustments | |||
Disclosure Of Reconciliation Of Effective Tax Rate [Line Items] | |||
Profit before taxation | 29,527 | ||
Less: share of post-tax results of associates and joint ventures | (24,209) | ||
Profit net of tax | 5,318 | ||
Tax at 19% (2017: 19%; 2016: 20%) on the above | 1,010 | ||
Tax at standard rates other than UK corporation tax rate | 389 | ||
Other national tax charges | 119 | ||
Permanent differences | 40 | ||
Overseas tax on distributions | 25 | ||
Overseas withholding taxes | 191 | ||
Double taxation relief on UK profits | (29) | ||
Unutilised/(utilised) tax losses | (38) | ||
Adjustments in respect of prior periods | 2 | ||
Deferred tax relating to changes in tax rates | (9,620) | ||
Deemed US repatriation tax | 34 | ||
Release of deferred tax on unremitted earnings of associates | (180) | ||
Additional net deferred tax (credits)/charges | (72) | ||
Taxation on ordinary activities | £ (8,129) | ||
Corporation tax rate | 19.00% | ||
Tax at standard rates other than UK corporation tax rate, percentage | 7.30% | ||
Other national tax charges, percentage | 2.20% | ||
Permanent differences, percentage | 0.80% | ||
Overseas tax on distributions, percentage | 0.50% | ||
Overseas withholding taxes, percentage | 3.60% | ||
Double taxation relief on UK profits, percentage | (0.50%) | ||
Unutilised/(utilised) tax losses, percentage | (0.70%) | ||
Adjustments in respect of prior periods, percentage | 0.00% | ||
Deferred tax relating to changes in tax rates, percentage | (180.90%) | ||
Deemed US repatriation tax, percentage | 0.60% | ||
Release of deferred tax on unremitted earnings of associates, percentage | (3.40%) | ||
Additional net deferred tax (credits)/charges, percentage | (1.40%) | ||
Tax, net of factors affecting the tax rate, percentage | (152.90%) |
Taxation on Ordinary Activiti_6
Taxation on Ordinary Activities - Summary of Factors Affecting the Taxation Charge (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Reconciliation Of Effective Tax Rate [Line Items] | |||
Corporation tax rate | 19.00% | 20.00% | |
Restatement Adjustments | |||
Disclosure Of Reconciliation Of Effective Tax Rate [Line Items] | |||
Corporation tax rate | 19.00% |
Taxation on Ordinary Activiti_7
Taxation on Ordinary Activities - Summary of Tax on Items Recognised Directly in Other Comprehensive Income (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax On Items Recognised Directly In Other Comprehensive Income [Abstract] | |||
Current tax | £ (8) | £ (4) | £ (53) |
Deferred tax | (7) | (133) | 70 |
(Charged)/credited to other comprehensive income | £ (15) | £ (137) | £ 17 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Line Items] | |||
Basic earnings per share (ordinary shares of 25p each), Earnings | £ 6,032 | £ 4,648 | |
Diluted earnings per share, Earnings | £ 6,032 | £ 4,648 | |
Basic earnings per share (ordinary shares of 25p each), Weighted average number of shares | 2,285 | 1,858 | |
Diluted earnings per share, Weighted average number of shares | 2,292 | 1,865 | |
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence | £ 2.640 | £ 2.502 | |
Diluted earnings per share, Earnings per share pence | £ 2.632 | £ 2.492 | |
Restatement Adjustments | |||
Earnings Per Share [Line Items] | |||
Basic earnings per share (ordinary shares of 25p each), Earnings | £ 37,485 | ||
Diluted earnings per share, Earnings | £ 37,485 | ||
Basic earnings per share (ordinary shares of 25p each), Weighted average number of shares | 2,044 | ||
Diluted earnings per share, Weighted average number of shares | 2,051 | ||
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence | £ 18.339 | ||
Diluted earnings per share, Earnings per share pence | £ 18.276 | ||
Share Options | |||
Earnings Per Share [Line Items] | |||
Share options, Weighted average number of shares | 7 | 7 | |
Share options, Earnings per share pence | £ (0.008) | £ (0.010) | |
Share Options | Restatement Adjustments | |||
Earnings Per Share [Line Items] | |||
Share options, Weighted average number of shares | 7 | ||
Share options, Earnings per share pence | £ (0.063) |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Earnings Per Share (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2018£ / shares | |
Earnings Per Share [Abstract] | |
Ordinary price per shares | £ 25 |
Earnings Per Share - Summary _3
Earnings Per Share - Summary of Adjusted Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjusted Earnings Per Share [Line Items] | |||
Basic earnings | £ 6,032 | £ 4,648 | |
Effect of restructuring and integration costs (basic) | 363 | 603 | |
Tax and non-controlling interests on restructuring and integration costs (basic) | (83) | (90) | |
Effect of amortisation and impairment of trademarks and similar intangibles (basic) | 377 | 149 | |
Tax on amortisation and impairment of trademarks and similar intangibles (basic) | (78) | (32) | |
Effect of associates' adjusting items net of tax (basic) | (32) | (900) | |
Effect of hyperinflation on Venezuela's retained earnings (basic) | 65 | ||
Other adjusting items (basic) | 184 | 53 | |
Tax effect on other adjusting items (basic) | (44) | (5) | |
Deferred tax relating to changes in tax rates (basic) | (79) | ||
Effect of retrospective guidance on WHT (basic) | 55 | ||
Effect of hedge ineffectiveness (basic) | (18) | ||
Effect of US bond buy back (basic) | 101 | ||
Adjusted Earnings | £ 6,801 | £ 4,615 | |
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence | £ 2.640 | £ 2.502 | |
Effect of restructuring and integration costs per share (basic) | 0.159 | 0.324 | |
Tax and non-controlling interests on restructuring and integration costs per share (basic) | (0.036) | (0.049) | |
Effect of amortisation and impairment of trademarks and similar intangibles per share (basic) | 0.165 | 0.080 | |
Tax on amortisation and impairment of trademarks and similar intangibles per share (basic) | (0.034) | (0.017) | |
Effect of associates' adjusting items net of tax per share (basic) | (0.014) | (0.484) | |
Effect of hyperinflation on Venezuela's retained earnings per share (basic) | 0.028 | ||
Other adjusting items per share (basic) | 0.080 | 0.029 | |
Tax effect on other adjusting items per share (basic) | (0.019) | (0.003) | |
Deferred tax relating to changes in tax rates per share (basic) | (0.035) | ||
Effect of retrospective guidance on WHT (basic) | 0.024 | ||
Effect of hedge ineffectiveness per share (basic) | (0.010) | ||
Effect of US bond buy back per share (basic) | 0.055 | ||
Adjusted earnings per share (basic) | £ 2.976 | £ 2.484 | |
Diluted earnings | £ 6,032 | £ 4,648 | |
Effect of restructuring and integration costs (diluted) | 363 | 603 | |
Tax and non-controlling interests on restructuring and integration costs (diluted) | (83) | (90) | |
Effect of amortisation and impairment of trademarks and similar intangibles (diluted) | 377 | 149 | |
Tax on amortisation and impairment of trademarks and similar intangibles (diluted) | (78) | (32) | |
Effect of associates' adjusting items net of tax (diluted) | (32) | (900) | |
Effect of hyperinflation on Venezuela's retained earnings (diluted) | 65 | ||
Other adjusting items (diluted) | 184 | 53 | |
Tax effect on other adjusting items (diluted) | (44) | (5) | |
Deferred tax relating to changes in tax rates (diluted) | (79) | ||
Effect of retrospective guidance on WHT (diluted) | 55 | ||
Effect of hedge ineffectiveness (diluted) | (18) | ||
Effect of US bond buy back (diluted) | 101 | ||
Adjusted earnings (diluted) | £ 6,801 | £ 4,615 | |
Diluted earnings per share | £ 2.632 | £ 2.492 | |
Effect of restructuring and integration costs per share (diluted) | 0.158 | 0.323 | |
Tax and non-controlling interests on restructuring and integration costs per share (diluted) | (0.036) | (0.048) | |
Effect of amortisation and impairment of trademarks and similar intangibles per share (diluted) | 0.164 | 0.080 | |
Tax on amortisation and impairment of trademarks and similar intangibles per share (diluted) | (0.034) | (0.017) | |
Effect of associates' adjusting items net of tax per share (diluted) | (0.014) | (0.483) | |
Effect of hyperinflation on Venezuela's retained earnings per share (diluted) | 0.028 | ||
Other adjusting items per share (diluted) | 0.080 | 0.029 | |
Tax effect on other adjusting items per share (diluted) | (0.019) | (0.003) | |
Deferred tax relating to changes in tax rates per share (diluted) | (0.034) | ||
Effect of retrospective guidance on WHT (diluted) | 0.024 | ||
Effect of hedge ineffectiveness per share (diluted) | (0.010) | ||
Effect of US bond buy back per share (diluted) | 0.055 | ||
Adjusted earnings per share (diluted) | £ 2.967 | £ 2.475 | |
Fox River | |||
Adjusted Earnings Per Share [Line Items] | |||
Net effect of changes in foreign exchange rates (basic) | £ 20 | ||
Net effect of changes in foreign exchange rates per share (basic) | £ 0.011 | ||
Net effect of changes in foreign exchange rates (diluted) | £ 20 | ||
Net effect of changes in foreign exchange rates per share (diluted) | £ 0.011 | ||
FII GLO | |||
Adjusted Earnings Per Share [Line Items] | |||
Effect of interest on FII GLO settlement and other (basic) | £ 41 | £ 25 | |
Effect of interest on FII GLO settlement and other per share (basic) | £ 0.018 | £ 0.013 | |
Effect of interest on FII GLO settlement and other (diluted) | £ 41 | £ 25 | |
Effect of interest on FII GLO settlement and other per share (diluted) | £ 0.018 | £ 0.013 | |
Restatement Adjustments | |||
Adjusted Earnings Per Share [Line Items] | |||
Basic earnings | £ 37,485 | ||
Effect of restructuring and integration costs (basic) | 600 | ||
Tax and non-controlling interests on restructuring and integration costs (basic) | (133) | ||
Effect of amortisation and impairment of trademarks and similar intangibles (basic) | 383 | ||
Tax on amortisation and impairment of trademarks and similar intangibles (basic) | (90) | ||
Effect of associates' adjusting items net of tax (basic) | (23,197) | ||
Other adjusting items (basic) | 534 | ||
Tax effect on other adjusting items (basic) | (184) | ||
Deferred tax relating to changes in tax rates (basic) | (9,586) | ||
Release of deferred tax on unremitted earnings from associates (basic) | (180) | ||
Effect of hedge ineffectiveness (basic) | 9 | ||
Tax effect on hedge ineffectiveness (basic) | (2) | ||
Adjusted Earnings | £ 5,786 | ||
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence | £ 18.339 | ||
Effect of restructuring and integration costs per share (basic) | 0.294 | ||
Tax and non-controlling interests on restructuring and integration costs per share (basic) | (0.065) | ||
Effect of amortisation and impairment of trademarks and similar intangibles per share (basic) | 0.187 | ||
Tax on amortisation and impairment of trademarks and similar intangibles per share (basic) | (0.044) | ||
Effect of associates' adjusting items net of tax per share (basic) | (11.349) | ||
Other adjusting items per share (basic) | 0.261 | ||
Tax effect on other adjusting items per share (basic) | (0.089) | ||
Deferred tax relating to changes in tax rates per share (basic) | (4.690) | ||
Release of deferred tax on unremitted earnings from associates per share (basic) | (0.088) | ||
Effect of hedge ineffectiveness per share (basic) | 0.004 | ||
Tax effect on hedge ineffectiveness per share (basic) | (0.001) | ||
Adjusted earnings per share (basic) | £ 2.831 | ||
Diluted earnings | £ 37,485 | ||
Effect of restructuring and integration costs (diluted) | 600 | ||
Tax and non-controlling interests on restructuring and integration costs (diluted) | (133) | ||
Effect of amortisation and impairment of trademarks and similar intangibles (diluted) | 383 | ||
Tax on amortisation and impairment of trademarks and similar intangibles (diluted) | (90) | ||
Effect of associates' adjusting items net of tax (diluted) | (23,197) | ||
Other adjusting items (diluted) | 534 | ||
Tax effect on other adjusting items (diluted) | (184) | ||
Deferred tax relating to changes in tax rates (diluted) | (9,586) | ||
Release of deferred tax on unremitted earnings from associates (diluted) | (180) | ||
Effect of hedge ineffectiveness (diluted) | 9 | ||
Tax effect on hedge ineffectiveness (diluted) | (2) | ||
Adjusted earnings (diluted) | £ 5,786 | ||
Diluted earnings per share | £ 18.276 | ||
Effect of restructuring and integration costs per share (diluted) | 0.293 | ||
Tax and non-controlling interests on restructuring and integration costs per share (diluted) | (0.065) | ||
Effect of amortisation and impairment of trademarks and similar intangibles per share (diluted) | 0.187 | ||
Tax on amortisation and impairment of trademarks and similar intangibles per share (diluted) | (0.044) | ||
Effect of associates' adjusting items net of tax per share (diluted) | (11.310) | ||
Other adjusting items per share (diluted) | 0.260 | ||
Tax effect on other adjusting items per share (diluted) | (0.089) | ||
Deferred tax relating to changes in tax rates per share (diluted) | (4.674) | ||
Release of deferred tax on unremitted earnings from associates per share (diluted) | (0.088) | ||
Effect of hedge ineffectiveness per share (diluted) | 0.004 | ||
Tax effect on hedge ineffectiveness per share (diluted) | (0.001) | ||
Adjusted earnings per share (diluted) | £ 2.821 | ||
Restatement Adjustments | FII GLO | |||
Adjusted Earnings Per Share [Line Items] | |||
Effect of interest on FII GLO settlement and other (basic) | £ 43 | ||
Effect of interest on FII GLO settlement and other per share (basic) | £ 0.021 | ||
Effect of interest on FII GLO settlement and other (diluted) | £ 43 | ||
Effect of interest on FII GLO settlement and other per share (diluted) | £ 0.021 | ||
Reynolds American Inc. | |||
Adjusted Earnings Per Share [Line Items] | |||
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) (basic) | £ 61 | ||
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) per share (basic) | £ 0.033 | ||
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) (diluted) | £ 61 | ||
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) per share (diluted) | £ 0.033 | ||
Reynolds American Inc. | Restatement Adjustments | |||
Adjusted Earnings Per Share [Line Items] | |||
Effect of adjusting finance costs in relation to acquisition of RAI (basic) | £ 153 | ||
Tax Effect of adjusting finance costs in relation to acquisition of RAI (basic) | £ (49) | ||
Effect of adjusting finance costs in relation to acquisition of RAI per share (basic) | £ 0.075 | ||
Tax Effect of adjusting finance costs in relation to acquisition of RAI per share (basic) | £ (0.024) | ||
Effect of adjusting finance costs in relation to acquisition of RAI (diluted) | £ 153 | ||
Tax Effect of adjusting finance costs in relation to acquisition of RAI (diluted) | £ (49) | ||
Effect of adjusting finance costs in relation to acquisition of RAI per share (diluted) | £ 0.075 | ||
Tax Effect of adjusting finance costs in relation to acquisition of RAI per share (diluted) | £ (0.024) |
Earnings Per Share - Summary _4
Earnings Per Share - Summary of Headline Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Headline Earnings Loss [Line Items] | |||
Basic earnings | £ 6,032 | £ 4,648 | |
Effect of impairment of intangibles, property, plant and equipment and assets held-for-sale | 238 | 126 | |
Tax and non-controlling interests on impairment of intangibles and property, plant and equipment | (65) | (35) | |
Effect of gains on disposal of property, plant and equipment and held-for-sale assets | (11) | (59) | |
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets | 4 | 30 | |
Effect of gains on disposal of businesses, non-current investments and brands | (10) | ||
Tax on gains on disposal of businesses, non-current investments and brands | 2 | ||
Share of associates' gains on disposal of assets | (941) | ||
Tax effect of associates' disposal of assets | 61 | ||
Issue of shares and change in shareholding in associate | (22) | (11) | |
Headline earnings (basic) | £ 6,168 | £ 3,819 | |
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence | £ 2.640 | £ 2.502 | |
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale (basic) | 0.103 | 0.068 | |
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment per share (basic) | (0.028) | (0.019) | |
Effect of gains on disposal of property, plant and equipment and held-for-sale assets per share (basic) | (0.005) | (0.032) | |
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets per share (basic) | 0.002 | 0.016 | |
Effect of gains on disposal of businesses, non-current investments and brands | (0.004) | ||
Tax on gains on disposal of businesses, non-current investments and brands | 0.001 | ||
Share of associates' gains on disposal of assets per share (basic) | (0.506) | ||
Tax effect of associates' disposal of assets per share (basic) | 0.033 | ||
Issue of shares and change in shareholding in associate per share (basic) | (0.010) | (0.006) | |
Headline earnings per share (basic) | £ 2.699 | £ 2.056 | |
Diluted earnings | £ 6,032 | £ 4,648 | |
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale (diluted) | 238 | 126 | |
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment (diluted) | (65) | (35) | |
Effect of gains on disposal of property, plant and equipment and held-for-sale assets (diluted) | (11) | (59) | |
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets (diluted) | 4 | 30 | |
Effect of gains on disposal of businesses, non current investments and brands (diluted) | (10) | ||
Tax on gains on disposal of businesses, non current investments and brands (diluted) | 2 | ||
Share of associates' gains on disposal of assets (diluted) | (941) | ||
Tax effect of associates' disposal of assets (diluted) | 61 | ||
Issue of shares and change in shareholding in associate (diluted) | (22) | (11) | |
Headline earnings (diluted) | £ 6,168 | £ 3,819 | |
Diluted earnings per share | £ 2.632 | £ 2.492 | |
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale per share (diluted) | 0.103 | 0.068 | |
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment per share (diluted) | (0.028) | (0.019) | |
Effect of gains on disposal of property, plant and equipment and held-for-sale assets per share (diluted) | (0.005) | (0.032) | |
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets per share (diluted) | 0.002 | 0.016 | |
Effect of gains on disposal of businesses, non current investments and brands (diluted) | (0.004) | ||
Tax on gains on disposal of businesses, non current investments and brands (diluted) | 0.001 | ||
Share of associates' gains on disposal of assets per share (diluted) | (0.504) | ||
Tax effect of associates' disposal of assets per share (diluted) | 0.033 | ||
Issue of shares and change in shareholding in associate per share (diluted) | (0.010) | (0.006) | |
Headline earnings per share (diluted) | £ 2.691 | £ 2.048 | |
Restatement Adjustments | |||
Disclosure Of Headline Earnings Loss [Line Items] | |||
Basic earnings | £ 37,485 | ||
Effect of impairment of intangibles, property, plant and equipment and assets held-for-sale | 179 | ||
Tax and non-controlling interests on impairment of intangibles and property, plant and equipment | (35) | ||
Effect of gains on disposal of property, plant and equipment and held-for-sale assets | (48) | ||
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets | 13 | ||
Gain on deemed disposal of RAI associate | (23,288) | ||
Write-off of investment in associate | 27 | ||
Issue of shares and change in shareholding in associate | (29) | ||
Headline earnings (basic) | £ 14,304 | ||
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence | £ 18.339 | ||
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale (basic) | 0.087 | ||
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment per share (basic) | (0.017) | ||
Effect of gains on disposal of property, plant and equipment and held-for-sale assets per share (basic) | (0.023) | ||
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets per share (basic) | 0.006 | ||
Gain on deemed disposal of RAI associate per share (basic) | (11.393) | ||
Write off of investment in associate per share (basic) | 0.013 | ||
Issue of shares and change in shareholding in associate per share (basic) | (0.014) | ||
Headline earnings per share (basic) | £ 6.998 | ||
Diluted earnings | £ 37,485 | ||
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale (diluted) | 179 | ||
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment (diluted) | (35) | ||
Effect of gains on disposal of property, plant and equipment and held-for-sale assets (diluted) | (48) | ||
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets (diluted) | 13 | ||
Gain on deemed disposal of RAI associate (diluted) | (23,288) | ||
Write off of investment in associate (diluted) | 27 | ||
Issue of shares and change in shareholding in associate (diluted) | (29) | ||
Headline earnings (diluted) | £ 14,304 | ||
Diluted earnings per share | £ 18.276 | ||
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale per share (diluted) | 0.086 | ||
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment per share (diluted) | (0.017) | ||
Effect of gains on disposal of property, plant and equipment and held-for-sale assets per share (diluted) | (0.023) | ||
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets per share (diluted) | 0.006 | ||
Gain on deemed disposal of RAI associate per share (diluted) | (11.354) | ||
Write off of investment in associate per share (diluted) | 0.013 | ||
Issue of shares and change in shareholding in associate per share (diluted) | (0.014) | ||
Headline earnings per share (diluted) | £ 6.973 |
Dividends and Other Appropria_3
Dividends and Other Appropriations - Summary of Detailed Information About Dividends (Details) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 190 | £ 174.6 | £ 155.9 |
Ordinary shares | £ 4,347,000,000 | £ 3,465,000,000 | £ 2,910,000,000 |
2018 paid 15 November 2018 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 48.8 | ||
Ordinary shares | £ 1,114,000,000 | ||
2018 paid 8 August 2018 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 48.8 | ||
Ordinary shares | £ 1,118,000,000 | ||
2018 paid 9 May 2018 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 48.8 | ||
Ordinary shares | £ 1,111,000,000 | ||
2017 paid 8 February 2018 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 43.6 | ||
Ordinary shares | £ 1,004,000,000 | ||
2017 paid 28 September 2018 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 56.5 | ||
Ordinary shares | £ 1,284,000,000 | ||
2016 paid 28 September 2016 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 51.3 | ||
Ordinary shares | £ 961,000,000 | ||
2016 paid 4 May 2017 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 118.1 | ||
Ordinary shares | £ 2,181,000,000 | ||
2015 paid 5 May 2016 | |||
Disclosure Of Dividends [Line Items] | |||
GBP per share | £ 104.6 | ||
Ordinary shares | £ 1,949,000,000 |
Dividends and Other Appropria_4
Dividends and Other Appropriations - Additional Information (Details) £ / shares in Units, £ in Millions | Feb. 07, 2019GBP (£) | Nov. 15, 2018GBP (£) | Aug. 08, 2018GBP (£) | May 09, 2018GBP (£) | Dec. 31, 2018GBP (£)InterimDividend£ / shares | Dec. 31, 2017£ / shares | Dec. 31, 2016GBP (£) |
Disclosure Of Dividends [Line Items] | |||||||
Number of interim quarterly dividend payments | InterimDividend | 4 | ||||||
Dividend declared per share | £ / shares | £ 48.8 | ||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | £ / shares | £ 0.436 | ||||||
Dividend declared | £ | £ 1,115 | £ 1,112 | £ 1,117 | £ 4,463 | £ 2,910 | ||
Interim dividend payable date | Nov. 15, 2018 | Aug. 8, 2018 | May 9, 2018 | Feb. 8, 2018 | |||
Major Ordinary Share Transactions | |||||||
Disclosure Of Dividends [Line Items] | |||||||
Dividend declared | £ | £ 1,119 | ||||||
Interim dividend payable date | Feb. 7, 2019 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Movement In Intangible Assets (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | £ 117,785 | £ 12,117 | |
Differences on exchange | 6,507 | (3,861) | |
– internal development | 120 | 87 | |
– acquisitions | 27 | 109,838 | |
– separately acquired | 62 | 127 | |
Amortisation charge | (444) | (356) | |
Impairment | (44) | (167) | |
Net book value at 31 December | 124,013 | 117,785 | |
Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 119,473 | 13,392 | |
Net book value at 31 December | 126,125 | 119,473 | |
Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | (2,112) | (1,688) | £ (1,275) |
Goodwill | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 44,147 | 11,023 | |
Differences on exchange | 2,024 | (1,189) | |
– acquisitions | 14 | 34,313 | |
Reallocations | (22) | ||
Net book value at 31 December | 46,163 | 44,147 | |
Goodwill | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 44,147 | 11,023 | |
Net book value at 31 December | 46,163 | 44,147 | |
Computer Software | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 447 | 438 | |
Differences on exchange | (3) | ||
– acquisitions | 33 | ||
– separately acquired | 29 | ||
Reallocations | 58 | 80 | |
Amortisation charge | (102) | (88) | |
Impairment | (42) | ||
Net book value at 31 December | 403 | 447 | |
Computer Software | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 1,119 | 1,054 | |
Net book value at 31 December | 1,101 | 1,119 | |
Computer Software | Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | (698) | (672) | (616) |
Trademarks and Similar Intangibles | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 73,120 | 596 | |
Differences on exchange | 4,483 | (2,669) | |
– acquisitions | 13 | 75,488 | |
– separately acquired | 62 | 98 | |
Reallocations | 30 | ||
Amortisation charge | (342) | (268) | |
Impairment | (44) | (125) | |
Net book value at 31 December | 77,322 | 73,120 | |
Trademarks and Similar Intangibles | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 74,136 | 1,255 | |
Net book value at 31 December | 78,736 | 74,136 | |
Trademarks and Similar Intangibles | Accumulated amortisation and impairment | |||
Disclosure Of Intangible Assets [Line Items] | |||
Accumulated amortisation and impairment | (1,414) | (1,016) | £ (659) |
Assets In the Course of Development | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 71 | 60 | |
– internal development | 120 | 87 | |
– acquisitions | 4 | ||
Reallocations | (66) | (80) | |
Net book value at 31 December | 125 | 71 | |
Assets In the Course of Development | Cost | |||
Disclosure Of Intangible Assets [Line Items] | |||
Net book value at 1 January | 71 | 60 | |
Net book value at 31 December | £ 125 | £ 71 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£)CashGeneratingUnit | Dec. 31, 2017GBP (£)CashGeneratingUnit | Jul. 25, 2017GBP (£) | |
Disclosure Of Intangible Assets [Line Items] | |||
Internally developed assets, carrying value | £ 120 | £ 87 | |
Future contractual commitments | 6 | 16 | |
Goodwill | £ 46,163 | £ 44,147 | |
Number of cash-generating units assessed for impairment | CashGeneratingUnit | 19 | 19 | |
Percentage of growth of operating units in financial budget in year 2 to 10 per annum | 4.00% | ||
Percentage of inflation rate in financial budget | 2.00% | 1.00% | |
Percentage of total growth rate assumed | 2.00% | 2.00% | |
Sensitivity analysis - reduction in cash flows | 10.00% | ||
Sensitivity analysis - increase in post-tax discount rate | 1.00% | ||
Impairment amount if discount rate increase at post rate of one percent | 0.00% | ||
Bottom of Range | |||
Disclosure Of Intangible Assets [Line Items] | |||
Pre-tax discount rate | 6.60% | 6.60% | |
Top of Range | |||
Disclosure Of Intangible Assets [Line Items] | |||
Pre-tax discount rate | 22.00% | 19.20% | |
United States | |||
Disclosure Of Intangible Assets [Line Items] | |||
Number of cash-generating units assessed for impairment | CashGeneratingUnit | 1 | 1 | |
APME | |||
Disclosure Of Intangible Assets [Line Items] | |||
Number of cash-generating units assessed for impairment | CashGeneratingUnit | 5 | 5 | |
AMSSA | |||
Disclosure Of Intangible Assets [Line Items] | |||
Number of cash-generating units assessed for impairment | CashGeneratingUnit | 6 | 6 | |
ENA | |||
Disclosure Of Intangible Assets [Line Items] | |||
Number of cash-generating units assessed for impairment | CashGeneratingUnit | 7 | 7 | |
Trademarks and Similar Intangibles | |||
Disclosure Of Intangible Assets [Line Items] | |||
Discount Rate applied to value-in-use calculations | 6.50% | ||
Western Europe | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | £ 4,033 | ||
Pre-tax discount rate | 7.30% | ||
Eastern Europe | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | £ 980 | ||
Pre-tax discount rate | 8.10% | ||
Reynolds American Inc. | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | £ 35,117 | £ 33,062 | £ 34,280 |
Skandinavisk Tobakskompagni | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | 1,111 | 1,102 | |
Rothmans Group | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | 4,856 | 4,834 | |
Imperial Tobacco Canada | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | 2,307 | 2,367 | |
ETI | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | 1,478 | 1,462 | |
Trademarks and Similar Intangibles | Reynolds American Inc. | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets | 73,885 | 69,562 | |
Trademarks and Similar Intangibles | Reynolds American Inc. | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets | 3,013 | 3,097 | |
Trademarks and Similar Intangibles | TDR D.O.O | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets | 40 | 61 | |
Trademarks and Similar Intangibles | Bulgartabac Holding AD | |||
Disclosure Of Intangible Assets [Line Items] | |||
Goodwill | 22 | ||
Trademarks and Similar Intangibles | Skandinavisk Tobakskompagni | |||
Disclosure Of Intangible Assets [Line Items] | |||
Intangible assets | 209 | 230 | |
Carrying Value | Computer Software and Assets in the Course of Development | Internally Developed | |||
Disclosure Of Intangible Assets [Line Items] | |||
Internally developed assets, carrying value | £ 523 | £ 459 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Cash Generating Unit (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 46,163 | £ 44,147 |
Western Europe | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 4,033 | |
Pre-tax discount rate | 7.30% | |
Eastern Europe | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 980 | |
Pre-tax discount rate | 8.10% | |
Individual Assets Or Cash Generating Units | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | 46,163 | £ 44,147 |
Individual Assets Or Cash Generating Units | Reynolds American Inc. | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 35,117 | £ 33,062 |
Pre-tax discount rate | 7.70% | 7.70% |
Individual Assets Or Cash Generating Units | Canada | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 2,307 | £ 2,367 |
Pre-tax discount rate | 7.50% | 7.50% |
Individual Assets Or Cash Generating Units | Western Europe | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Pre-tax discount rate | 7.30% | |
Individual Assets Or Cash Generating Units | South Africa | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 605 | £ 661 |
Pre-tax discount rate | 10.60% | 9.60% |
Individual Assets Or Cash Generating Units | Europe | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 5,069 | £ 5,013 |
Pre-tax discount rate | 7.50% | |
Individual Assets Or Cash Generating Units | Eastern Europe | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Pre-tax discount rate | 8.10% | |
Individual Assets Or Cash Generating Units | Australia | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 740 | £ 775 |
Pre-tax discount rate | 7.90% | 7.90% |
Individual Assets Or Cash Generating Units | Singapore | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 615 | £ 591 |
Pre-tax discount rate | 6.60% | 6.60% |
Individual Assets Or Cash Generating Units | Malaysia | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 448 | £ 431 |
Pre-tax discount rate | 8.20% | 8.30% |
Individual Assets Or Cash Generating Units | Other | ||
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items] | ||
Goodwill | £ 1,262 | £ 1,247 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | £ 4,882 | £ 3,661 | |
Differences on exchange | 102 | (210) | |
– acquisitions (note 24) | 1,041 | ||
– separately acquired | 769 | 823 | |
Depreciation | (363) | (388) | |
Impairment | (194) | (12) | |
Disposals | (30) | (16) | |
Net reclassifications as held-for-sale | (17) | ||
Net book value | 5,166 | 4,882 | |
Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 8,191 | 7,149 | |
Net book value | 8,654 | 8,191 | |
Accumulated amortisation and impairment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Accumulated depreciation and impairment | (3,488) | (3,309) | £ (3,488) |
Freehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 1,086 | 803 | |
Differences on exchange | 76 | (33) | |
– acquisitions (note 24) | 349 | ||
– separately acquired | 5 | 23 | |
Reallocations | 58 | (5) | |
Depreciation | (34) | (29) | |
Impairment | (74) | (1) | |
Disposals | (13) | (4) | |
Net reclassifications as held-for-sale | (17) | ||
Net book value | 1,104 | 1,086 | |
Freehold Property | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 1,455 | 1,163 | |
Net book value | 1,515 | 1,455 | |
Freehold Property | Accumulated amortisation and impairment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Accumulated depreciation and impairment | (411) | (369) | (360) |
Leasehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 143 | 123 | |
Differences on exchange | 4 | (11) | |
– acquisitions (note 24) | 4 | ||
– separately acquired | 1 | ||
Reallocations | 2 | 35 | |
Depreciation | (11) | (7) | |
Impairment | (1) | ||
Net book value | 139 | 143 | |
Leasehold Property | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 267 | 239 | |
Net book value | 268 | 267 | |
Leasehold Property | Accumulated amortisation and impairment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Accumulated depreciation and impairment | (129) | (124) | (116) |
Plant and Equipment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 2,736 | 2,031 | |
Differences on exchange | 27 | (117) | |
– acquisitions (note 24) | 626 | ||
– separately acquired | 41 | 47 | |
Reallocations | 466 | 523 | |
Depreciation | (318) | (352) | |
Impairment | (120) | (10) | |
Disposals | (17) | (12) | |
Net book value | 2,815 | 2,736 | |
Plant and Equipment | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 5,552 | 5,022 | |
Net book value | 5,763 | 5,552 | |
Plant and Equipment | Accumulated amortisation and impairment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Accumulated depreciation and impairment | (2,948) | (2,816) | (2,991) |
Assets in the Course of Construction | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 917 | 704 | |
Differences on exchange | (5) | (49) | |
– acquisitions (note 24) | 62 | ||
– separately acquired | 722 | 753 | |
Reallocations | (526) | (553) | |
Net book value | 1,108 | 917 | |
Assets in the Course of Construction | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Net book value | 917 | 725 | |
Net book value | £ 1,108 | £ 917 | |
Assets in the Course of Construction | Accumulated amortisation and impairment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Accumulated depreciation and impairment | £ (21) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Impairment charge | £ 194 | £ 12 | |
Net book value of assets held under finance leases | 16 | 29 | |
Property, plant and equipment | 5,166 | 4,882 | £ 3,661 |
Freehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Impairment charge | 74 | 1 | |
Property, plant and equipment | 1,104 | 1,086 | 803 |
Carrying Value | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 8,654 | 8,191 | 7,149 |
Carrying Value | Freehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 1,515 | 1,455 | £ 1,163 |
Carrying Value | Freehold Property | Globe House | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 185 | £ 187 | |
Venezuela | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Indexation in respect of operations | 149 | ||
Impairment charge | £ 110 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Schedule of Cost of Freehold Land, Net Book Value of Leasehold Properties and Contracts Placed for Future Expenditure (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | £ 5,166 | £ 4,882 | £ 3,661 |
Contracts placed for future expenditure | 141 | 85 | |
Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 8,654 | 8,191 | £ 7,149 |
Freehold Land within Freehold Property on Which no Depreciate is Provided | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 255 | 253 | |
Short Term and Long Term Leasehold Property | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 146 | 143 | |
Long Leasehold | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 100 | 104 | |
Short Leasehold | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | £ 46 | £ 39 |
Investments in Associates and_3
Investments in Associates and Joint Ventures - Summary of Investments In Associates And Joint Ventures (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Dividends paid by the associate | £ (211) | £ (688) |
Investments in associates and joint ventures | 1,737 | |
Noncurrent assets | 133,687 | |
Current assets | 12,655 | |
Non-current liabilities | (64,325) | |
Current liabilities | (16,329) | |
ITC Ltd. | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Dividends paid by the associate | (204) | (204) |
Noncurrent assets | 4,106 | 3,738 |
Current assets | 2,823 | 3,089 |
Non-current liabilities | (238) | (240) |
Current liabilities | (1,002) | (1,446) |
Associates And Joint Ventures | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Investments in associates and joint ventures | 1,577 | 9,507 |
Total comprehensive income (note 5) | 387 | 23,316 |
Dividends paid by the associate | (211) | (688) |
Additions | 13 | |
Reclassification of Reynolds American Inc. (RAI) | (30,521) | |
Other equity movements | (16) | (50) |
Investments in associates and joint ventures | 1,737 | 1,577 |
Noncurrent assets | 1,225 | 1,127 |
Current assets | 953 | 1,019 |
Non-current liabilities | (71) | (67) |
Current liabilities | (370) | (502) |
Associates And Joint Ventures | ITC Ltd. | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Investments in associates and joint ventures | 1,527 | |
Investments in associates and joint ventures | 1,682 | 1,527 |
Associates And Joint Ventures | Other Listed Associates | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Investments in associates and joint ventures | 18 | |
Investments in associates and joint ventures | 20 | 18 |
Associates And Joint Ventures | Unlisted Associates | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Investments in associates and joint ventures | 32 | |
Investments in associates and joint ventures | £ 35 | £ 32 |
Investments in Associates and_4
Investments in Associates and Joint Ventures - Summary of Investments In Associates And Joint Ventures (Parenthetical) (Details) - Associates And Joint Ventures - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ITC Ltd. | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Market value of investments in associates | £ 11,465 | £ 11,036 |
Other Listed Associates | ||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | ||
Market value of investments in associates | £ 183 | £ 184 |
Investments in Associates and_5
Investments in Associates and Joint Ventures - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 25, 2017 | |
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Dividends paid by the associate | £ 211 | £ 688 | |||
Reynolds American Inc. | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Ownership interest acquired | 57.80% | ||||
Dividends paid by the associate | £ 0 | 477 | |||
Agrokor d.d. | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Shares owned by related party in non-controlling interest | 26.00% | ||||
ITC Ltd. | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Dividends paid by the associate | £ 204 | 204 | |||
Percentage of interest in associate | 29.57% | ||||
Associates And Joint Ventures | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Deemed gain related to the investment in Reynolds | 30,521 | ||||
Dividends paid by the associate | £ 211 | £ 688 | |||
Associates And Joint Ventures | Reynolds American Inc. | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Ownership interest acquired | 57.80% | ||||
Deemed gain related to the investment in Reynolds | 30,521 | ||||
Gains on disposals of investment | £ 23,288 | ||||
Associates And Joint Ventures | ITC Ltd. | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Percentage of interest in associate | 29.57% | 29.71% | 29.89% | 30.06% | |
Subsidiaries | |||||
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items] | |||||
Gains (losses) on remeasuring available-for-sale financial assets, before tax | £ (27) |
Investments in Associates and_6
Investments in Associates and Joint Ventures - Summary of Principal Associate Undertakings (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Significant Investments In Associates [Line Items] | ||
Noncurrent assets | £ 133,687 | |
Current assets | 12,655 | |
Non-current liabilities | (64,325) | |
Current liabilities | (16,329) | |
Investments in associates and joint ventures | 1,737 | |
ITC Ltd. | ||
Disclosure Of Significant Investments In Associates [Line Items] | ||
Noncurrent assets | 4,106 | £ 3,738 |
Current assets | 2,823 | 3,089 |
Non-current liabilities | (238) | (240) |
Current liabilities | (1,002) | (1,446) |
Investments in associates and joint ventures | 5,689 | 5,141 |
Associates And Joint Ventures | ||
Disclosure Of Significant Investments In Associates [Line Items] | ||
Noncurrent assets | 1,225 | 1,127 |
Current assets | 953 | 1,019 |
Non-current liabilities | (71) | (67) |
Current liabilities | (370) | (502) |
Associates And Joint Ventures | ITC Ltd. | ||
Disclosure Of Significant Investments In Associates [Line Items] | ||
Investments in associates | £ 1,682 | £ 1,527 |
Investments in Associates and_7
Investments in Associates and Joint Ventures - Summary of Principal Associate Undertakings (Parenthetical) (Details) - ITC Ltd. | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Significant Investments In Associates [Line Items] | ||||
Percentage of interest in associate | 29.57% | |||
Associates And Joint Ventures | ||||
Disclosure Of Significant Investments In Associates [Line Items] | ||||
Percentage of interest in associate | 29.57% | 29.71% | 29.89% | 30.06% |
Retirement Benefit Schemes - Ad
Retirement Benefit Schemes - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018GBP (£)RetirementBenefitArrangement | Dec. 31, 2018GBP (£)RetirementBenefitArrangement | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | |
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Number of retirement benefit arrangements operated by the Group's subsidiary undertakings | | RetirementBenefitArrangement | 190 | 190 | ||
Description of basis of valuation of assets available for benefits | It is Group policy that all schemes are formally valued at least every three years. | |||
Percentage of principal schemes to total defined benefit schemes | 85.00% | |||
Description of basis of valuation of defined benefit schemes | For unfunded schemes in the USA, UK and Canada, 41% of the liabilities reported at year end are expected to be settled by the Group within 10 years, 29% between 10 and 20 years, 17% between 20 and 30 years, and 13% thereafter | |||
Employee benefit costs, in respect of settlements, past service costs and defined contribution costs reported as part of restructuring costs | £ 3,000,000 | £ 12,000,000 | ||
Percentage of scheme liabilities relate to guaranteed benefits | 95.00% | 95.00% | 95.00% | |
Increase of actuarial assumption | £ 339,000,000 | £ 339,000,000 | ||
Decrease of actuarial assumption | £ (340,000,000) | £ (340,000,000) | ||
United Kingdom | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Percentage of return-seeking assets scheme | 10.00% | 20.00% | ||
Percentage of risk-reducing assets scheme | 90.00% | 80.00% | ||
General inflation (%) | 3.20% | 3.20% | 3.20% | |
Rate of increase in salaries (%) | 3.20% | 3.20% | 3.20% | |
Discount rate (%) | 2.90% | 2.90% | 2.50% | |
Germany | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
General inflation (%) | 1.10% | 1.10% | 1.80% | |
Rate of increase in salaries (%) | 1.70% | 1.70% | 2.50% | |
Discount rate (%) | 1.30% | 1.30% | 1.90% | |
United States | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
General inflation (%) | 2.50% | 2.50% | 2.50% | |
Rate of increase in salaries (%) | 3.90% | 3.90% | 3.90% | |
Discount rate (%) | 4.30% | 4.30% | 3.70% | |
Canada | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
General inflation (%) | 2.00% | 2.00% | 2.00% | |
Rate of increase in salaries (%) | 3.00% | 3.00% | 3.00% | |
Discount rate (%) | 3.80% | 3.80% | 3.30% | |
All Other Countries | Bottom of Range | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Rate of increase in salaries (%) | 0.50% | 0.50% | 0.50% | |
Discount rate (%) | 0.60% | 0.60% | 0.50% | |
All Other Countries | Top of Range | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Rate of increase in salaries (%) | 6.30% | 6.30% | 4.00% | |
Discount rate (%) | 7.60% | 7.60% | 10.00% | |
Funded Retirement Benefit | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Funded retirement benefit schemes | £ 88,000,000 | £ 221,000,000 | ||
Funded Pension Plans | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Pension schemes contribution | 87,000,000 | |||
Funded Postretirement Plans | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Pension schemes contribution | 40,000,000 | |||
Pension Schemes | United Kingdom | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Value contributed to cover on-going service costs and additional contributions to eliminate a funding shortfall | 30,000,000 | |||
Additional contributions to cover on-going service costs and additional contributions to eliminate a funding shortfall | £ 78,000,000 | £ 78,000,000 | ||
Contributions to be paid to meet cost of future benefit accruals | 18,000,000 | |||
Additional contributions to cover on-going service costs and additional contributions to eliminate a funding shortfall in 2019 | 11,000,000 | |||
Maximum charge to secure total contributions payable over the Group's Head Office | £ 150,000,000 | |||
Year in which charge is due to be released | 2039 | |||
Percentage of unfunded benefit schemes | 48.00% | 47.00% | ||
Pension Schemes | Germany | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Company contributions to pension schemes, 2019 | £ 25,000,000 | £ 25,000,000 | ||
Company contributions to pension schemes, 2020 | 24,000,000 | 24,000,000 | ||
Company contributions to pension schemes. 2021 | 24,000,000 | 24,000,000 | ||
Company contributions to pension schemes, 2022 | 24,000,000 | 24,000,000 | ||
Company contributions to pension schemes, 2023 | 21,000,000 | 21,000,000 | ||
Pension Schemes | Canada, the Netherlands and Switzerland | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Company contributions to pension schemes, 2019 | 25,000,000 | 25,000,000 | ||
Company contributions to pension schemes, 2020 | 10,000,000 | 10,000,000 | ||
Company contributions to pension schemes. 2021 | 10,000,000 | 10,000,000 | ||
Company contributions to pension schemes, 2022 | 10,000,000 | 10,000,000 | ||
Company contributions to pension schemes, 2023 | 10,000,000 | £ 10,000,000 | ||
Pension Schemes | United States | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Percentage of unfunded benefit schemes | 32.00% | 33.00% | ||
Healthcare Schemes | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Increase of actuarial assumption | 42,000,000 | £ 42,000,000 | ||
Decrease of actuarial assumption | £ (36,000,000) | £ (36,000,000) | ||
Healthcare Schemes | United States | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Percentage of unfunded benefit schemes | 87.00% | 86.00% | ||
General inflation (%) | 6.50% | 6.50% | 7.00% | |
Healthcare Schemes | Canada | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
General inflation (%) | 5.00% | 5.00% | 5.00% | |
Administration Costs | ||||
Disclosure Of Defined Benefit Plans [Line Items] | ||||
Current service costs | £ 16,000,000 | £ 16,000,000 |
Retirement Benefit Schemes - Sc
Retirement Benefit Schemes - Schedule of Defined Benefit Amounts Recognised in Balance Sheets (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded scheme liabilities | £ (12,423) | £ (13,025) | ||
Unrecognised funded scheme surpluses | (20) | (23) | £ (18) | £ (11) |
Net defined benefit liability | (518) | (698) | ||
Funded Defined Benefit Obligation | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded scheme liabilities | (11,317) | (11,868) | ||
Fair value of funded scheme assets | 11,925 | 12,350 | ||
Surplus (deficit) in plan | 608 | 482 | ||
Unrecognised funded scheme surpluses | (20) | (23) | ||
Surplus Deficit In Plan Net Unrecognised Funded | 588 | 459 | ||
Unfunded Defined Benefit Obligation | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of unfunded scheme liabilities | (1,106) | (1,157) | ||
Net defined benefit liability | (518) | (698) | ||
Pension Schemes | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded scheme liabilities | (11,562) | (12,077) | ||
Unrecognised funded scheme surpluses | (20) | (23) | £ (18) | £ (11) |
Net defined benefit liability | 165 | 57 | ||
Pension Schemes | Funded Defined Benefit Obligation | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded scheme liabilities | (11,031) | (11,542) | ||
Fair value of funded scheme assets | 11,747 | 12,157 | ||
Surplus (deficit) in plan | 716 | 615 | ||
Unrecognised funded scheme surpluses | (20) | (23) | ||
Surplus Deficit In Plan Net Unrecognised Funded | 696 | 592 | ||
Pension Schemes | Unfunded Defined Benefit Obligation | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of unfunded scheme liabilities | (531) | (535) | ||
Net defined benefit liability | 165 | 57 | ||
Healthcare Schemes | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded scheme liabilities | (861) | (948) | ||
Net defined benefit liability | (683) | (755) | ||
Healthcare Schemes | Funded Defined Benefit Obligation | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of funded scheme liabilities | (286) | (326) | ||
Fair value of funded scheme assets | 178 | 193 | ||
Surplus (deficit) in plan | (108) | (133) | ||
Surplus Deficit In Plan Net Unrecognised Funded | (108) | (133) | ||
Healthcare Schemes | Unfunded Defined Benefit Obligation | ||||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||||
Present value of unfunded scheme liabilities | (575) | (622) | ||
Net defined benefit liability | £ (683) | £ (755) |
Retirement Benefit Schemes - _2
Retirement Benefit Schemes - Schedule of Defined Net Asset/ (Liability) Recognised in Balance Sheets (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
– retirement benefit scheme liabilities | £ (1,665) | £ (1,821) |
– retirement benefit scheme assets | 1,147 | 1,123 |
Net defined benefit liability | (518) | (698) |
Pension Schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
– retirement benefit scheme liabilities | (982) | (1,065) |
– retirement benefit scheme assets | 1,147 | 1,122 |
Net defined benefit liability | 165 | 57 |
Healthcare Schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
– retirement benefit scheme liabilities | (683) | (756) |
– retirement benefit scheme assets | 1 | |
Net defined benefit liability | £ (683) | £ (755) |
Retirement Benefit Schemes - _3
Retirement Benefit Schemes - Schedule of Net Liabilities of Funded Pension Schemes by Territory (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | £ (12,423) | £ (13,025) |
Funded Defined Benefit Obligation | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (11,317) | (11,868) |
Assets | 11,925 | 12,350 |
Surplus (deficit) in plan | 608 | 482 |
Pension Schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (11,562) | (12,077) |
Pension Schemes | Funded Defined Benefit Obligation | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (11,031) | (11,542) |
Assets | 11,747 | 12,157 |
Surplus (deficit) in plan | 716 | 615 |
Pension Schemes | United States | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (4,835) | (5,022) |
Assets | 4,464 | 4,640 |
Surplus (deficit) in plan | (371) | (382) |
Pension Schemes | United Kingdom | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (2,962) | (3,133) |
Assets | 4,016 | 4,119 |
Surplus (deficit) in plan | 1,054 | 986 |
Pension Schemes | Germany | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (949) | (998) |
Assets | 948 | 945 |
Surplus (deficit) in plan | (1) | (53) |
Pension Schemes | Canada | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (694) | (782) |
Assets | 708 | 779 |
Surplus (deficit) in plan | 14 | (3) |
Pension Schemes | Netherlands | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (782) | (769) |
Assets | 793 | 819 |
Surplus (deficit) in plan | 11 | 50 |
Pension Schemes | Switzerland | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (326) | (330) |
Assets | 283 | 285 |
Surplus (deficit) in plan | (43) | (45) |
Pension Schemes | Rest of Group | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Liabilities | (483) | (508) |
Assets | 535 | 570 |
Surplus (deficit) in plan | £ 52 | £ 62 |
Retirement Benefit Schemes - _4
Retirement Benefit Schemes - Schedule of Defined Benefit Amounts Recognised in Income Statement (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Defined Benefit Plans [Line Items] | |||
– current service cost | £ 97 | £ 104 | |
– past service cost/(credit), curtailments and settlements | (1) | 11 | |
– interest on scheme liabilities | 397 | 310 | |
– interest on scheme assets | (370) | (280) | |
– interest on unrecognised funded scheme surpluses | 2 | 2 | £ 2 |
Defined benefit schemes | 125 | 147 | |
Defined contribution schemes | 87 | 68 | |
Total amount recognised in the income statement | 212 | 215 | 101 |
Pension Schemes | |||
Disclosure Of Defined Benefit Plans [Line Items] | |||
– current service cost | 95 | 104 | |
– past service cost/(credit), curtailments and settlements | 11 | ||
– interest on scheme liabilities | 364 | 291 | |
– interest on scheme assets | (362) | (276) | |
– interest on unrecognised funded scheme surpluses | 2 | 2 | £ 2 |
Defined benefit schemes | 99 | 132 | |
Defined contribution schemes | 87 | 68 | |
Total amount recognised in the income statement | 186 | 200 | |
Healthcare Schemes | |||
Disclosure Of Defined Benefit Plans [Line Items] | |||
– current service cost | 2 | ||
– past service cost/(credit), curtailments and settlements | (1) | ||
– interest on scheme liabilities | 33 | 19 | |
– interest on scheme assets | (8) | (4) | |
Defined benefit schemes | 26 | 15 | |
Total amount recognised in the income statement | £ 26 | £ 15 |
Retirement Benefit Schemes - _5
Retirement Benefit Schemes - Schedule of Movements in Scheme Liabilities (Details) - Liabilities [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value beginning balance | £ 13,025 | £ 7,630 |
Differences on exchange | 338 | (234) |
Current service costs | 97 | 107 |
Past service cost/(credit) | 4 | |
Settlements | (11) | 7 |
Interest on scheme liabilities | 397 | 311 |
Contributions by scheme members | 2 | 3 |
Benefits paid | (756) | (554) |
Acquisition of subsidiaries | 6,093 | |
Actuarial losses/(gains) arising from changes in demographic assumptions | (16) | (426) |
Actuarial losses/(gains)arising from changes in financial assumptions | (596) | 101 |
Experience gains | (57) | (17) |
Present value ending balance | 12,423 | 13,025 |
Pension Schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value beginning balance | 12,077 | 7,510 |
Differences on exchange | 295 | (199) |
Current service costs | 95 | 105 |
Past service cost/(credit) | 4 | |
Settlements | (10) | 7 |
Interest on scheme liabilities | 364 | 292 |
Contributions by scheme members | 2 | 3 |
Benefits paid | (694) | (523) |
Acquisition of subsidiaries | 5,211 | |
Actuarial losses/(gains) arising from changes in demographic assumptions | (12) | (418) |
Actuarial losses/(gains)arising from changes in financial assumptions | (547) | 92 |
Experience gains | (8) | (7) |
Present value ending balance | 11,562 | 12,077 |
Healthcare Schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value beginning balance | 948 | 120 |
Differences on exchange | 43 | (35) |
Current service costs | 2 | 2 |
Settlements | (1) | |
Interest on scheme liabilities | 33 | 19 |
Benefits paid | (62) | (31) |
Acquisition of subsidiaries | 882 | |
Actuarial losses/(gains) arising from changes in demographic assumptions | (4) | (8) |
Actuarial losses/(gains)arising from changes in financial assumptions | (49) | 9 |
Experience gains | (49) | (10) |
Present value ending balance | £ 861 | £ 948 |
Retirement Benefit Schemes - _6
Retirement Benefit Schemes - Schedule of Scheme Liabilities by Scheme Membership (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | £ 12,423 | £ 13,025 |
Active Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 1,840 | 1,997 |
Deferred Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 1,261 | 1,397 |
Retired Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 9,322 | 9,631 |
Pension Schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 11,562 | 12,077 |
Pension Schemes | Active Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 1,785 | 1,928 |
Pension Schemes | Deferred Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 1,259 | 1,394 |
Pension Schemes | Retired Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 8,518 | 8,755 |
Healthcare Schemes | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 861 | 948 |
Healthcare Schemes | Active Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 55 | 69 |
Healthcare Schemes | Deferred Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | 2 | 3 |
Healthcare Schemes | Retired Members | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Present value | £ 804 | £ 876 |
Retirement Benefit Schemes - Su
Retirement Benefit Schemes - Summary of Movements in Funded Scheme Assets (Details) - Plan assets [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | £ 12,350 | £ 7,278 |
Differences on exchange | 270 | (177) |
Settlements | (10) | (1) |
Interest on scheme assets | 370 | 281 |
Company contributions | 221 | 254 |
Contributions by scheme members | 4 | |
Benefits paid | (745) | (534) |
Acquisition of subsidiaries | 4,754 | |
Actuarial gains/(losses) | (531) | 491 |
Fair value of scheme assets at 31 December | 11,925 | 12,350 |
Assets | 11,925 | 12,350 |
Listed | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 1,138 | 2,450 |
Bonds | 5,936 | 5,286 |
Other assets | 628 | 691 |
Unlisted | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 989 | 1,408 |
Bonds | 1,756 | 1,430 |
Other assets | 1,478 | 1,085 |
Pension Schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | 12,157 | 7,264 |
Differences on exchange | 262 | (170) |
Settlements | (10) | (1) |
Interest on scheme assets | 362 | 277 |
Company contributions | 176 | 232 |
Contributions by scheme members | 4 | |
Benefits paid | (684) | (509) |
Acquisition of subsidiaries | 4,574 | |
Actuarial gains/(losses) | (516) | 486 |
Fair value of scheme assets at 31 December | 11,747 | 12,157 |
Assets | 11,747 | 12,157 |
Pension Schemes | Listed | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 1,133 | 2,444 |
Bonds | 5,925 | 5,272 |
Other assets | 618 | 682 |
Pension Schemes | Unlisted | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 930 | 1,337 |
Bonds | 1,672 | 1,346 |
Other assets | 1,469 | 1,076 |
Healthcare Schemes | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Fair value of scheme assets at 1 January | 193 | 14 |
Differences on exchange | 8 | (7) |
Interest on scheme assets | 8 | 4 |
Company contributions | 45 | 22 |
Benefits paid | (61) | (25) |
Acquisition of subsidiaries | 180 | |
Actuarial gains/(losses) | (15) | 5 |
Fair value of scheme assets at 31 December | 178 | 193 |
Assets | 178 | 193 |
Healthcare Schemes | Listed | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 5 | 6 |
Bonds | 11 | 14 |
Other assets | 10 | 9 |
Healthcare Schemes | Unlisted | ||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | ||
Equities | 59 | 71 |
Bonds | 84 | 84 |
Other assets | £ 9 | £ 9 |
Retirement Benefit Schemes - _7
Retirement Benefit Schemes - Summary of Movements in the Unrecognised Scheme Surpluses Recognised in Other Comprehensive Income (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | |||
Unrecognised funded scheme surpluses, beginning balance | £ (23) | £ (18) | £ (11) |
Differences on exchange | 1 | 3 | (4) |
Interest on unrecognised funded scheme surpluses | (2) | (2) | (2) |
Movement in year | 4 | (6) | (1) |
Unrecognised funded scheme surpluses, ending balance | (20) | (23) | (18) |
Pension Schemes | |||
Disclosure Of Net Defined Benefit Liability Asset [Line Items] | |||
Unrecognised funded scheme surpluses, beginning balance | (23) | (18) | (11) |
Differences on exchange | 1 | 3 | (4) |
Interest on unrecognised funded scheme surpluses | (2) | (2) | (2) |
Movement in year | 4 | (6) | (1) |
Unrecognised funded scheme surpluses, ending balance | £ (20) | £ (23) | £ (18) |
Retirement Benefit Schemes - _8
Retirement Benefit Schemes - Summary of Actuarial Assumptions Rate for Valuations Plans (Details) - GBP (£) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
USA | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 3.90% | 3.90% |
Rate of increase in pensions in payment (%) | 2.50% | 2.50% |
Rate of increase in deferred pensions (%) | 0.00% | 0.00% |
Discount rate (%) | 4.30% | 3.70% |
General inflation (%) | 2.50% | 2.50% |
Weighted average duration of liabilities (years) | 10.8 | 11.3 |
United Kingdom | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 3.20% | 3.20% |
Rate of increase in pensions in payment (%) | 3.20% | 3.20% |
Rate of increase in deferred pensions (%) | 2.20% | 2.20% |
Discount rate (%) | 2.90% | 2.50% |
General inflation (%) | 3.20% | 3.20% |
Weighted average duration of liabilities (years) | 16 | 16.9 |
Germany | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 1.70% | 2.50% |
Rate of increase in pensions in payment (%) | 1.10% | 1.80% |
Rate of increase in deferred pensions (%) | 1.10% | 1.80% |
Discount rate (%) | 1.30% | 1.90% |
General inflation (%) | 1.10% | 1.80% |
Weighted average duration of liabilities (years) | 8.2 | 13.7 |
Canada | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 3.00% | 3.00% |
Rate of increase in pensions in payment (%) | 0.00% | 0.00% |
Rate of increase in deferred pensions (%) | 0.00% | 0.00% |
Discount rate (%) | 3.80% | 3.30% |
General inflation (%) | 2.00% | 2.00% |
Weighted average duration of liabilities (years) | 10.5 | 11 |
Netherlands | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 2.10% | 2.00% |
Rate of increase in pensions in payment (%) | 1.10% | 1.20% |
Rate of increase in deferred pensions (%) | 1.10% | 1.20% |
Discount rate (%) | 1.80% | 2.00% |
General inflation (%) | 2.00% | 2.00% |
Weighted average duration of liabilities (years) | 17.5 | 17.8 |
Switzerland | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Rate of increase in salaries (%) | 1.30% | 1.30% |
Rate of increase in pensions in payment (%) | 0.00% | 0.00% |
Rate of increase in deferred pensions (%) | 0.00% | 0.00% |
Discount rate (%) | 0.90% | 0.60% |
General inflation (%) | 1.10% | 1.00% |
Weighted average duration of liabilities (years) | 12.8 | 13.5 |
Retirement Benefit Schemes - _9
Retirement Benefit Schemes - Summary of Principal Schemes Used (Details) | 12 Months Ended |
Dec. 31, 2018 | |
United Kingdom | |
Disclosure Of Actuarial Assumptions Used [Line Items] | |
Mortality assumptions | S2PA (YOB) with the CMI (2017) improvement model with a 1.25% long term improvement rate (2017: CMI (2016)) |
United States | |
Disclosure Of Actuarial Assumptions Used [Line Items] | |
Mortality assumptions | RP-2018 mortality tables without collar or amounts adjusted projected with MP-2018 generational projection (2017: RP-2017 and MP-2017) |
Germany | |
Disclosure Of Actuarial Assumptions Used [Line Items] | |
Mortality assumptions | RT Heubeck 2018 G (2017: Heubeck 2005 G) |
Canada | |
Disclosure Of Actuarial Assumptions Used [Line Items] | |
Mortality assumptions | CPM-2014 Private Table (both years) |
Netherlands | |
Disclosure Of Actuarial Assumptions Used [Line Items] | |
Mortality assumptions | AG Prognosetafel 2018 (2017: AG Prognosetafel 2016) |
Switzerland | |
Disclosure Of Actuarial Assumptions Used [Line Items] | |
Mortality assumptions | LPP/BVG 2015 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate (both years) |
Retirement Benefit Schemes -_10
Retirement Benefit Schemes - Summary of Weighted Average Life Expectancy Used to Determine Benefit Obligations (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
United States | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 20 years 8 months 12 days | 20 years 8 months 12 days |
Member age 65 (current life expectancy), Female | 22 years 8 months 12 days | 22 years 8 months 12 days |
Member age 45 (life expectancy at age 65), Male | 22 years 3 months 18 days | 22 years 3 months 18 days |
Member age 45 (life expectancy at age 65), Female | 24 years 2 months 12 days | 24 years 2 months 12 days |
United Kingdom | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 22 years 7 months 6 days | 22 years 8 months 12 days |
Member age 65 (current life expectancy), Female | 24 years 1 month 6 days | 24 years 2 months 12 days |
Member age 45 (life expectancy at age 65), Male | 24 years 2 months 12 days | 24 years 3 months 18 days |
Member age 45 (life expectancy at age 65), Female | 25 years 4 months 24 days | 25 years 6 months |
Germany | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 17 years | 19 years 3 months 19 days |
Member age 65 (current life expectancy), Female | 20 years 7 months 6 days | 23 years 3 months 19 days |
Member age 45 (life expectancy at age 65), Male | 19 years 9 months 18 days | 21 years 10 months 24 days |
Member age 45 (life expectancy at age 65), Female | 22 years 9 months 18 days | 25 years 9 months 18 days |
Canada | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 21 years 6 months | 21 years 4 months 24 days |
Member age 65 (current life expectancy), Female | 23 years 10 months 24 days | 23 years 9 months 18 days |
Member age 45 (life expectancy at age 65), Male | 22 years 6 months | 22 years 6 months |
Member age 45 (life expectancy at age 65), Female | 24 years 9 months 18 days | 24 years 9 months 18 days |
Netherlands | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 20 years 9 months 18 days | 20 years 9 months 18 days |
Member age 65 (current life expectancy), Female | 24 years 6 months | 24 years 9 months 18 days |
Member age 45 (life expectancy at age 65), Male | 23 years 1 month 6 days | 23 years 3 months 18 days |
Member age 45 (life expectancy at age 65), Female | 26 years 6 months | 27 years |
Switzerland | ||
Disclosure Of Life Expectancy [Line Items] | ||
Member age 65 (current life expectancy), Male | 21 years 9 months 18 days | 21 years 8 months 12 days |
Member age 65 (current life expectancy), Female | 23 years 9 months 18 days | 23 years 8 months 12 days |
Member age 45 (life expectancy at age 65), Male | 23 years 7 months 6 days | 23 years 6 months |
Member age 45 (life expectancy at age 65), Female | 25 years 7 months 6 days | 25 years 6 months |
Retirement Benefit Schemes -_11
Retirement Benefit Schemes - Summary of Sensitivity Analysis (Details) £ in Millions | Dec. 31, 2018GBP (£) |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
1 year increase | £ 339 |
1 year decrease | (340) |
Rate of Inflation ? Increase/(Decrease) of Scheme Liabilities | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
0.25 percentage point increase | 169 |
0.25 percentage point decrease | (159) |
Discount Rate ? (Decrease)/Increase of Scheme Liabilities | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | |
0.25 percentage point increase | (267) |
0.25 percentage point decrease | £ 286 |
Deferred Tax - Summary of Recon
Deferred Tax - Summary of Reconciliation of Net Deferred Tax Assets/(Liabilities) (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | £ (16,796) | |||
Accounting policy change (IFRS 9) (note 31) | £ 7 | |||
At 1 January 2018 | (16,789) | |||
Differences on exchange | (1,011) | |||
Subsidiaries acquired | 1 | |||
(Charged)/credited to the income statement | 304 | £ (4) | ||
– deferred tax relating to changes in tax rates | (70) | £ (9,620) | ||
(Charged)/credited to other comprehensive income | (7) | |||
At 31 December | (17,432) | (16,796) | ||
Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (16,796) | (216) | ||
Differences on exchange | 852 | |||
Subsidiaries acquired | (27,071) | |||
(Charged)/credited to the income statement | 152 | |||
– deferred tax relating to changes in tax rates | (9,620) | |||
(Charged)/credited to other comprehensive income | (133) | |||
At 31 December | (16,796) | (216) | ||
Stock relief | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (91) | |||
At 1 January 2018 | (91) | |||
Differences on exchange | (7) | |||
(Charged)/credited to the income statement | 27 | |||
– deferred tax relating to changes in tax rates | 1 | |||
At 31 December | (70) | (91) | ||
Stock relief | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (91) | 31 | ||
Differences on exchange | 2 | |||
Subsidiaries acquired | (375) | |||
(Charged)/credited to the income statement | 180 | |||
– deferred tax relating to changes in tax rates | 71 | |||
At 31 December | (91) | 31 | ||
Excess of capital allowances over depreciation | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (174) | |||
At 1 January 2018 | (174) | |||
Differences on exchange | (10) | |||
(Charged)/credited to the income statement | (16) | |||
– deferred tax relating to changes in tax rates | (10) | |||
At 31 December | (210) | (174) | ||
Excess of capital allowances over depreciation | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (174) | (58) | ||
Differences on exchange | 15 | |||
Subsidiaries acquired | (234) | |||
(Charged)/credited to the income statement | 19 | |||
– deferred tax relating to changes in tax rates | 84 | |||
At 31 December | (174) | (58) | ||
Tax losses | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | 113 | |||
At 1 January 2018 | 113 | |||
Differences on exchange | 4 | |||
(Charged)/credited to the income statement | (11) | |||
– deferred tax relating to changes in tax rates | (1) | |||
At 31 December | 105 | 113 | ||
Tax losses | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | 113 | 89 | ||
Differences on exchange | (6) | |||
(Charged)/credited to the income statement | 30 | |||
At 31 December | 113 | 89 | ||
Undistributed earnings of associates and subsidiaries | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (241) | |||
At 1 January 2018 | (241) | |||
Differences on exchange | 6 | |||
(Charged)/credited to the income statement | (46) | |||
At 31 December | (281) | (241) | ||
Undistributed earnings of associates and subsidiaries | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (241) | (392) | ||
Differences on exchange | 13 | |||
(Charged)/credited to the income statement | 138 | |||
At 31 December | (241) | (392) | ||
Retirement benefits | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | 264 | |||
At 1 January 2018 | 264 | |||
Differences on exchange | 15 | |||
(Charged)/credited to the income statement | (36) | |||
– deferred tax relating to changes in tax rates | 4 | |||
(Charged)/credited to other comprehensive income | (25) | |||
At 31 December | 222 | 264 | ||
Retirement benefits | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | 264 | 117 | ||
Differences on exchange | (12) | |||
Subsidiaries acquired | 514 | |||
(Charged)/credited to the income statement | 10 | |||
– deferred tax relating to changes in tax rates | (194) | |||
(Charged)/credited to other comprehensive income | (171) | |||
At 31 December | 264 | 117 | ||
Trademarks | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (17,323) | |||
At 1 January 2018 | (17,323) | |||
Differences on exchange | (1,066) | |||
Subsidiaries acquired | (3) | |||
(Charged)/credited to the income statement | 67 | |||
– deferred tax relating to changes in tax rates | 79 | |||
At 31 December | (18,246) | (17,323) | ||
Trademarks | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | (17,323) | (95) | ||
Differences on exchange | 862 | |||
Subsidiaries acquired | (28,091) | |||
(Charged)/credited to the income statement | 66 | |||
– deferred tax relating to changes in tax rates | 9,935 | |||
At 31 December | (17,323) | (95) | ||
Other Temporary Differences | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | 656 | |||
Accounting policy change (IFRS 9) (note 31) | 7 | |||
At 1 January 2018 | £ 663 | |||
Differences on exchange | 47 | |||
Subsidiaries acquired | 4 | |||
(Charged)/credited to the income statement | 319 | |||
– deferred tax relating to changes in tax rates | (3) | |||
(Charged)/credited to other comprehensive income | 18 | |||
At 31 December | 1,048 | 656 | ||
Other Temporary Differences | Restatement Adjustments | ||||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||||
At 31 December 2017 | £ 656 | 92 | ||
Differences on exchange | (22) | |||
Subsidiaries acquired | 1,115 | |||
(Charged)/credited to the income statement | (291) | |||
– deferred tax relating to changes in tax rates | (276) | |||
(Charged)/credited to other comprehensive income | 38 | |||
At 31 December | £ 656 | £ 92 |
Deferred Tax - Additional Infor
Deferred Tax - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Federal corporation tax rate | 21.00% | |
Credited/(charged) relating to changes in tax rates | £ 70 | £ 9,620 |
Deferred tax assets | 344 | 333 |
Deferred tax liabilities | 17,776 | 17,129 |
Undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised | £ 700 | £ 700 |
No expiry date | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Expiry period for which no deferred tax asset recognised | no expiry date | no expiry date |
Unused tax credits for which no deferred tax asset recognised | £ 80 | £ 80 |
Unused tax losses | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Credited/(charged) relating to changes in tax rates | £ 1 | |
Unused tax losses | No expiry date | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Expiry period for which no deferred tax asset recognised | no expiry date | no expiry date |
Unused tax losses for which no deferred tax asset recognised | £ 308 | £ 301 |
Unused tax losses | Within next 10 years | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Expiry period for which no deferred tax asset recognised | within the next 10 years | within the next 10 years |
Unused tax losses for which no deferred tax asset recognised | £ 502 | £ 616 |
Deductible temporary differences | No expiry date | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Expiry period for which no deferred tax asset recognised | no expiry date | no expiry date |
Deductible temporary differences for which no deferred tax asset recognised | £ 0 | £ 0 |
Deductible temporary differences | Within next 10 years | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Expiry period for which no deferred tax asset recognised | within the next 10 years | within the next 10 years |
Deductible temporary differences for which no deferred tax asset recognised | £ 184 | £ 140 |
Reynolds American Inc. | ||
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits | ||
Name of acquiree | RAI | |
Date of acquisition | Jul. 25, 2017 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade And Other Receivables [Abstract] | ||
Trade receivables | £ 2,868 | £ 3,306 |
Loans and other receivables | 1,082 | 1,214 |
Prepayments and accrued income | 323 | 289 |
Net trade and other receivables per balance sheet | 4,273 | 4,809 |
Trade and other receivables, Current | 3,588 | 4,053 |
Trade and other receivables, Non-current | £ 685 | £ 756 |
Trade and Other Receivables - A
Trade and Other Receivables - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade debtor balance | £ 270 | £ 54 |
Litigation deposits | 553 | 603 |
Recoverable payments under Quebec Class Action, discount effect | £ 24 | £ 21 |
US Dollar | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 3.50% | 1.40% |
UK sterling | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 4.20% | 4.30% |
Euro | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 1.60% | 1.50% |
Other Currencies | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Percentage of trade and other receivables denominated in other currencies | 6.60% | 9.60% |
Canada | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Recoverable payments under Quebec Class Action | £ 436 | £ 449 |
Factoring of receivables | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables derecognised through factoring arrangements | £ 428 | £ 139 |
Trade and Other Receivables -_2
Trade and Other Receivables - Summary of Trade and Other Receivables Reported in Balance Sheet Net of Allowances (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade And Other Receivables [Abstract] | ||
Trade receivables - gross | £ 2,898 | £ 3,345 |
Trade receivables - allowance | (30) | (39) |
Loans and other receivables - gross | 1,092 | 1,260 |
Loans and other receivables - allowance | (10) | (46) |
Prepayments and accrued income | 323 | 289 |
Net trade and other receivables per balance sheet | £ 4,273 | £ 4,809 |
Trade and Other Receivables -_3
Trade and Other Receivables - Summary of Movements in Allowance Account (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade And Other Receivables | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade and other receivables | £ 85 | £ 87 |
Trade and other receivables | 45 | |
Revised 1 January | 130 | 87 |
Differences on exchange | 2 | 4 |
Provided in the year | 26 | 46 |
Released | (118) | (52) |
Trade and other receivables | 40 | 85 |
Loans and Other Receivables | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade and other receivables | 46 | |
Trade and other receivables | 8 | |
Revised 1 January | 54 | |
Provided in the year | 10 | 46 |
Released | (54) | |
Trade and other receivables | 10 | 46 |
Trade Debtors | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade and other receivables | 39 | 87 |
Trade and other receivables | 37 | |
Revised 1 January | 76 | 87 |
Differences on exchange | 2 | 4 |
Provided in the year | 16 | |
Released | (64) | (52) |
Trade and other receivables | £ 30 | £ 39 |
Investments Held at Fair Valu_2
Investments Held at Fair Value - Schedule of Investments (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Financial Assets [Line Items] | ||
Asset held at fair value, Beginning | £ 107 | |
Accounting policy change (IFRS 9) (note 31) | 146 | |
Asset held at fair value, adjusted balance | 253 | |
Differences on exchange | (53) | |
Additions | 282 | |
Revaluations | 36 | |
Disposals | (301) | |
Asset held at fair value, Ending | 217 | £ 107 |
Available-for-sale investments, Current | 178 | |
Available-for-sale investments, Non-current | 39 | |
Fair value through P&L | ||
Disclosure Of Financial Assets [Line Items] | ||
Accounting policy change (IFRS 9) (note 31) | 237 | |
Asset held at fair value, adjusted balance | 237 | |
Differences on exchange | (53) | |
Additions | 278 | |
Revaluations | 36 | |
Disposals | (285) | |
Asset held at fair value, Ending | 213 | |
Available-for-sale investments, Current | 178 | |
Available-for-sale investments, Non-current | 35 | |
Fair value through OCI | ||
Disclosure Of Financial Assets [Line Items] | ||
Accounting policy change (IFRS 9) (note 31) | 16 | |
Asset held at fair value, adjusted balance | 16 | |
Additions | 4 | |
Disposals | (16) | |
Asset held at fair value, Ending | 4 | |
Available-for-sale investments, Non-current | 4 | |
Available-for-sale | ||
Disclosure Of Financial Assets [Line Items] | ||
Asset held at fair value, Beginning | 107 | 58 |
Accounting policy change (IFRS 9) (note 31) | £ (107) | |
Additions | 90 | |
Revaluations | (27) | |
Disposals | (14) | |
Asset held at fair value, Ending | 107 | |
Available-for-sale investments, Current | 65 | |
Available-for-sale investments, Non-current | £ 42 |
Investments Held at Fair Valu_3
Investments Held at Fair Value - Schedule of Investments in Currency (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Assets [Line Items] | ||
Financial assets, at fair value | £ 217 | £ 107 |
Functional Currency | ||
Disclosure Of Financial Assets [Line Items] | ||
Financial assets, at fair value | 212 | £ 107 |
Other currency | ||
Disclosure Of Financial Assets [Line Items] | ||
Financial assets, at fair value | £ 5 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivatives (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | £ 735 | £ 818 |
Liabilities | 516 | 234 |
Derivative financial instruments | 179 | 228 |
Derivative financial instruments | 556 | 590 |
Assets, Derivatives ? in respect of net debt | 647 | 640 |
Assets, Derivatives ? other | 88 | 178 |
Derivative financial instruments | 302 | 155 |
Derivative financial instruments | 214 | 79 |
Liabilities, Derivatives - in respect of net debt | 269 | 117 |
Liabilities, Derivatives - other | 247 | 117 |
Interest Rate Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 187 | 166 |
Liabilities | 181 | 91 |
Fair Value Hedges | Interest Rate Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 181 | 97 |
Liabilities | 83 | 14 |
Fair Value Hedges | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 282 | 263 |
Cash Flow Hedges | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 210 | 270 |
Liabilities | 196 | 73 |
Cash Flow Hedges | Interest Rate Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 1 | |
Liabilities | 98 | |
Cash Flow Hedges | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 149 | 187 |
Liabilities | 56 | |
Cash Flow Hedges | Forward Foreign Currency Contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 61 | 82 |
Liabilities | 42 | 73 |
Net Investment Hedges | Forward Foreign Currency Contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 10 | 85 |
Liabilities | 174 | 39 |
Held-for-trading | Interest Rate Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 6 | 68 |
Liabilities | 77 | |
Held-for-trading | Forward Foreign Currency Contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 46 | 35 |
Liabilities | £ 63 | £ 31 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | £ 735 | £ 818 |
Liabilities | 516 | 234 |
Cash Flow Hedges | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 210 | 270 |
Liabilities | 196 | 73 |
Cash Flow Hedges | Within One Year | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 59 | 73 |
Liabilities | 39 | 69 |
Cash Flow Hedges | Beyond 5 Years | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets | 149 | 165 |
Liabilities | £ 113 | £ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Maturity Dates of Gross-settled Derivative Financial Instruments (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | £ 9,836 | £ 13,885 |
Assets Outflow | (8,967) | (13,580) |
Liabilities Inflow | 12,562 | 6,158 |
Liabilities Outflow | (12,688) | (6,289) |
Within One Year | Forward Foreign Currency Contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 7,081 | 8,874 |
Assets Outflow | (6,526) | (8,702) |
Liabilities Inflow | 9,876 | 5,929 |
Liabilities Outflow | (9,749) | (6,059) |
Within One Year | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 55 | 56 |
Assets Outflow | (54) | (97) |
Liabilities Inflow | 33 | |
Liabilities Outflow | (92) | |
Between One and Two Years | Forward Foreign Currency Contracts | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 332 | 339 |
Assets Outflow | (330) | (328) |
Liabilities Inflow | 449 | 229 |
Liabilities Outflow | (441) | (230) |
Between One and Two Years | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 36 | 89 |
Assets Outflow | (43) | (135) |
Liabilities Inflow | 20 | |
Liabilities Outflow | (73) | |
Between Two and Three Years | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 830 | 60 |
Assets Outflow | (771) | (108) |
Liabilities Inflow | 1,008 | |
Liabilities Outflow | (1,075) | |
Between Three and Four Years | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 15 | 1,812 |
Assets Outflow | (26) | (1,782) |
Liabilities Inflow | 17 | |
Liabilities Outflow | (38) | |
Between Four and Five Years | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 733 | 32 |
Assets Outflow | (592) | (62) |
Liabilities Inflow | 690 | |
Liabilities Outflow | (730) | |
Beyond Five Years | Cross-currency Swaps | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 754 | 2,623 |
Assets Outflow | (625) | £ (2,366) |
Liabilities Inflow | 469 | |
Liabilities Outflow | £ (490) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Maturity Dates of Net-settled Derivative Financial Instruments (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | £ 210 | £ 172 |
Liabilities Outflow | 125 | 93 |
Interest Rate Swaps | Within One Year | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 53 | 44 |
Liabilities Outflow | 40 | 18 |
Interest Rate Swaps | Between One and Two Years | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 48 | 34 |
Liabilities Outflow | 19 | 5 |
Interest Rate Swaps | Between Two and Three Years | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 45 | 28 |
Liabilities Outflow | 15 | 6 |
Interest Rate Swaps | Between Three and Four Years | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 26 | 26 |
Liabilities Outflow | 13 | 6 |
Interest Rate Swaps | Between Four and Five Years | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 23 | 12 |
Liabilities Outflow | 15 | 7 |
Interest Rate Swaps | Beyond Five Years | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Assets Inflow | 15 | 28 |
Liabilities Outflow | £ 23 | £ 51 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Items Designated As Hedging Instruments (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Fair Value Hedges | Interest Rate Swaps | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 4,470 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ 11 |
Fair Value Hedges | Cross-currency Swaps | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 1,561 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ 19 |
Cash Flow Hedges | Interest Rate Swaps | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 2,715 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (98) |
Cash Flow Hedges | Cross-currency Swaps | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 2,856 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (91) |
Cash Flow Hedges | Forward Foreign Currency Contracts | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 3,574 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (4) |
Net Investment Hedges (Non-derivative Related) | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (226) |
Net Investment Hedges (Non-derivative Related) | Long-term borrowings [member] | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 4,647 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (226) |
Net Investment Hedges (Non-derivative Related) | Forward Foreign Currency Contracts | |
Disclosure Of Financial Assets And Liabilities [Line Items] | |
Nominal amount of hedging instrument | 5,291 |
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (166) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Classes Of Inventories [Abstract] | ||
Raw materials and consumables | £ 3,049 | £ 3,027 |
Finished goods and work in progress | 2,877 | 2,692 |
Goods purchased for resale | 103 | 145 |
Inventories | £ 6,029 | £ 5,864 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes Of Inventories [Abstract] | |||
Inventories pledged as security for liabilities | £ 7 | £ 7 | |
Inventory write-offs | £ 148 | £ 114 | £ 127 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule Representing Cash and Cash Equivalents (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||
Cash and bank balances | £ 2,069 | £ 1,967 |
Cash equivalents | 533 | 1,324 |
Cash and cash equivalents | £ 2,602 | £ 3,291 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents Denominated in the Functional Currency of the Subsidiary Undertaking or Other Currencies (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 2,602 | £ 3,291 |
Functional Currency | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 2,144 | 2,842 |
US Dollar | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 158 | 161 |
Euro | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | 174 | 159 |
Other Currency | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 126 | £ 129 |
Cash and Cash Equivalents - S_2
Cash and Cash Equivalents - Summary of Net Cash and Cash Equivalents Shown After Deducting Bank Overdrafts and Accrued Interest (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | £ 2,602 | £ 3,291 | ||
Less overdrafts and accrued interest | (274) | (469) | ||
Net cash and cash equivalents | £ 2,328 | £ 2,822 | £ 1,651 | £ 1,730 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalent [Line Items] | ||
Restricted cash and cash equivalents | £ 170 | £ 160 |
Cash and cash equivalents | 2,602 | 3,291 |
Hedging Instrument | ||
Cash And Cash Equivalent [Line Items] | ||
Cash and cash equivalents | £ 125 | £ 12 |
Capital and Reserves - Reconc_3
Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Capital and Reserves - Reconciliation of Movement in Total Equity (Details) - GBP (£) £ in Millions | Nov. 15, 2018 | Aug. 08, 2018 | May 09, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | £ 60,981 | £ 8,406 | £ 5,032 | |||
Comprehensive income and expense | ||||||
Profit for the year | 6,210 | 4,839 | ||||
Differences on exchange | 3,868 | 1,270 | ||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (58) | 29 | ||||
– reclassified and reported in profit for the year | 17 | 38 | ||||
– reclassified and reported in total assets | (12) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | (472) | (837) | ||||
– differences on exchange on borrowings | (236) | (124) | ||||
Associates – share of OCI, net of tax | (38) | 1,415 | ||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 18 | (19) | ||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 138 | (228) | ||||
– surplus recognition and minimum funding obligations | 4 | (1) | ||||
Associates – share of OCI, net of tax | 6 | 20 | ||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (33) | 36 | ||||
Cash flow hedges reclassified and reported in total assets | (22) | |||||
– value of employee services | 121 | 71 | ||||
– proceeds from shares issued | 4 | 4 | ||||
– ordinary shares | £ (1,115) | £ (1,112) | £ (1,117) | (4,463) | (2,910) | |
– to non-controlling interests | (163) | (156) | ||||
– held in employee share ownership trusts | (139) | (64) | ||||
Non-controlling interests – acquisitions | (11) | |||||
Other movements | (6) | 3 | ||||
Ending balance | 65,688 | 60,981 | 8,406 | |||
Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 60,981 | 8,406 | ||||
Comprehensive income and expense | ||||||
Profit for the year | 37,656 | |||||
Differences on exchange | (3,084) | |||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (264) | |||||
– reclassified and reported in profit for the year | 109 | |||||
– reclassified and reported in total assets | (16) | |||||
Investments held at fair value | ||||||
– net fair value losses | (27) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | 425 | |||||
– differences on exchange on borrowings | (68) | |||||
Associates – share of OCI, net of tax | (918) | |||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 34 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 833 | |||||
– surplus recognition and minimum funding obligations | (6) | |||||
Associates – share of OCI, net of tax | 25 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (171) | |||||
– value of employee services | 105 | |||||
– proceeds from shares issued | 5 | |||||
– ordinary shares | (4,465) | |||||
– to non-controlling interests | (169) | |||||
– held in employee share ownership trusts | (205) | |||||
Shares issued- RAI acquisition | 22,773 | |||||
Other movements | 3 | |||||
Ending balance | 60,981 | 8,406 | ||||
Accounting policy change (IFRS 9) | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (38) | |||||
Retirement benefit schemes | ||||||
Ending balance | (38) | |||||
Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 60,943 | |||||
Retirement benefit schemes | ||||||
Ending balance | 60,943 | |||||
Share Capital | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 614 | 507 | 507 | |||
Retirement benefit schemes | ||||||
Ending balance | 614 | 614 | 507 | |||
Share Capital | Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 614 | 507 | ||||
Retirement benefit schemes | ||||||
Shares issued- RAI acquisition | 107 | |||||
Ending balance | 614 | 507 | ||||
Share Capital | Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 614 | |||||
Retirement benefit schemes | ||||||
Ending balance | 614 | |||||
Share Premium, Capital Redemption and Merger Reserves | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 26,602 | 3,931 | 3,927 | |||
Retirement benefit schemes | ||||||
– proceeds from shares issued | 4 | 4 | ||||
Ending balance | 26,606 | 26,602 | 3,931 | |||
Share Premium, Capital Redemption and Merger Reserves | Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 26,602 | 3,931 | ||||
Retirement benefit schemes | ||||||
– proceeds from shares issued | 5 | |||||
Shares issued- RAI acquisition | 22,666 | |||||
Ending balance | 26,602 | 3,931 | ||||
Share Premium, Capital Redemption and Merger Reserves | Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 26,602 | |||||
Retirement benefit schemes | ||||||
Ending balance | 26,602 | |||||
Other Reserves | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (3,392) | 413 | (1,294) | |||
Comprehensive income and expense | ||||||
Differences on exchange | 3,861 | 1,218 | ||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (58) | 28 | ||||
– reclassified and reported in profit for the year | 17 | 38 | ||||
– reclassified and reported in total assets | (12) | |||||
Investments held at fair value | ||||||
– reclassified and reported in retained earnings | (8) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | (472) | (837) | ||||
– differences on exchange on borrowings | (236) | (124) | ||||
Associates – share of OCI, net of tax | (38) | 1,415 | ||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 18 | (19) | ||||
Retirement benefit schemes | ||||||
Associates – share of OCI, net of tax | 6 | |||||
Cash flow hedges reclassified and reported in total assets | (22) | |||||
Ending balance | (333) | (3,392) | 413 | |||
Other Reserves | Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (3,392) | 413 | ||||
Comprehensive income and expense | ||||||
Differences on exchange | (3,082) | |||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (263) | |||||
– reclassified and reported in profit for the year | 109 | |||||
– reclassified and reported in total assets | (16) | |||||
Investments held at fair value | ||||||
– net fair value losses | (27) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | 425 | |||||
– differences on exchange on borrowings | (67) | |||||
Associates – share of OCI, net of tax | (918) | |||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 34 | |||||
Retirement benefit schemes | ||||||
Ending balance | (3,392) | 413 | ||||
Other Reserves | Accounting policy change (IFRS 9) | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (9) | |||||
Retirement benefit schemes | ||||||
Ending balance | (9) | |||||
Other Reserves | Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (3,401) | |||||
Retirement benefit schemes | ||||||
Ending balance | (3,401) | |||||
Retained Earnings | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 36,935 | 3,331 | 1,754 | |||
Comprehensive income and expense | ||||||
Profit for the year | 6,032 | 4,648 | ||||
Investments held at fair value | ||||||
– reclassified and reported in retained earnings | 8 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 138 | (231) | ||||
– surplus recognition and minimum funding obligations | 4 | |||||
Associates – share of OCI, net of tax | 20 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (33) | 36 | ||||
– value of employee services | 121 | 71 | ||||
– ordinary shares | (4,463) | (2,910) | ||||
– held in employee share ownership trusts | (139) | (64) | ||||
Non-controlling interests – acquisitions | (11) | 4 | ||||
Other movements | (6) | 3 | ||||
Ending balance | 38,557 | 36,935 | 3,331 | |||
Retained Earnings | Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 36,935 | 3,331 | ||||
Comprehensive income and expense | ||||||
Profit for the year | 37,485 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 832 | |||||
– surplus recognition and minimum funding obligations | (5) | |||||
Associates – share of OCI, net of tax | 25 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (171) | |||||
– value of employee services | 105 | |||||
– ordinary shares | (4,465) | |||||
– held in employee share ownership trusts | (205) | |||||
Other movements | 3 | |||||
Ending balance | 36,935 | 3,331 | ||||
Retained Earnings | Accounting policy change (IFRS 9) | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (29) | |||||
Retirement benefit schemes | ||||||
Ending balance | (29) | |||||
Retained Earnings | Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 36,906 | |||||
Retirement benefit schemes | ||||||
Ending balance | 36,906 | |||||
Total Attributable to Owners of Parent | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 60,759 | 8,182 | 4,894 | |||
Comprehensive income and expense | ||||||
Profit for the year | 6,032 | 4,648 | ||||
Differences on exchange | 3,861 | 1,218 | ||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (58) | 28 | ||||
– reclassified and reported in profit for the year | 17 | 38 | ||||
– reclassified and reported in total assets | (12) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | (472) | (837) | ||||
– differences on exchange on borrowings | (236) | (124) | ||||
Associates – share of OCI, net of tax | (38) | 1,415 | ||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 18 | (19) | ||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 138 | (231) | ||||
– surplus recognition and minimum funding obligations | 4 | |||||
Associates – share of OCI, net of tax | 6 | 20 | ||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (33) | 36 | ||||
Cash flow hedges reclassified and reported in total assets | (22) | |||||
– value of employee services | 121 | 71 | ||||
– proceeds from shares issued | 4 | 4 | ||||
– ordinary shares | (4,463) | (2,910) | ||||
– held in employee share ownership trusts | (139) | (64) | ||||
Non-controlling interests – acquisitions | (11) | 4 | ||||
Other movements | (6) | 3 | ||||
Ending balance | 65,444 | 60,759 | 8,182 | |||
Total Attributable to Owners of Parent | Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 60,759 | 8,182 | ||||
Comprehensive income and expense | ||||||
Profit for the year | 37,485 | |||||
Differences on exchange | (3,082) | |||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (263) | |||||
– reclassified and reported in profit for the year | 109 | |||||
– reclassified and reported in total assets | (16) | |||||
Investments held at fair value | ||||||
– net fair value losses | (27) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | 425 | |||||
– differences on exchange on borrowings | (67) | |||||
Associates – share of OCI, net of tax | (918) | |||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 34 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 832 | |||||
– surplus recognition and minimum funding obligations | (5) | |||||
Associates – share of OCI, net of tax | 25 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (171) | |||||
– value of employee services | 105 | |||||
– proceeds from shares issued | 5 | |||||
– ordinary shares | (4,465) | |||||
– held in employee share ownership trusts | (205) | |||||
Shares issued- RAI acquisition | 22,773 | |||||
Other movements | 3 | |||||
Ending balance | 60,759 | 8,182 | ||||
Total Attributable to Owners of Parent | Accounting policy change (IFRS 9) | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | (38) | |||||
Retirement benefit schemes | ||||||
Ending balance | (38) | |||||
Total Attributable to Owners of Parent | Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 60,721 | |||||
Retirement benefit schemes | ||||||
Ending balance | 60,721 | |||||
Non- Controlling Interests | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 222 | 224 | 138 | |||
Comprehensive income and expense | ||||||
Profit for the year | 178 | 191 | ||||
Differences on exchange | 7 | 52 | ||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | 1 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 3 | |||||
– surplus recognition and minimum funding obligations | (1) | |||||
– to non-controlling interests | (163) | (156) | ||||
Non-controlling interests – acquisitions | (4) | |||||
Ending balance | 244 | 222 | 224 | |||
Non- Controlling Interests | Restatement Adjustments | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | 222 | 224 | ||||
Comprehensive income and expense | ||||||
Profit for the year | 171 | |||||
Differences on exchange | (2) | |||||
Cash flow hedges | ||||||
– net fair value (losses)/gains | (1) | |||||
Net investment hedges | ||||||
– differences on exchange on borrowings | (1) | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 1 | |||||
– surplus recognition and minimum funding obligations | (1) | |||||
– to non-controlling interests | (169) | |||||
Ending balance | 222 | £ 224 | ||||
Non- Controlling Interests | Revised for IFRS 9 | ||||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||||
Beginning balance | £ 222 | |||||
Retirement benefit schemes | ||||||
Ending balance | £ 222 |
Capital and Reserves - Reconc_4
Capital and Reserves - Reconciliation of Movement in Total Equity - Additional Information (Details) - GBP (£) | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 25, 2017 | Dec. 31, 2015 | Dec. 31, 2004 | Dec. 31, 1999 | |
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Differences on exchange | £ 3,868,000,000 | £ 1,270,000,000 | |||||
Associates - share of OCI, net of tax | 3,099,000,000 | 1,760,000,000 | |||||
Shares issued under share option schemes | 121,000,000 | 71,000,000 | |||||
Equity | 65,688,000,000 | £ 60,981,000,000 | 8,406,000,000 | £ 5,032,000,000 | |||
Cost of treasury shares repurchased | 4,845,000,000 | 4,845,000,000 | 4,845,000,000 | ||||
Cost of own shares held in employee share ownership trusts | £ 397,000,000 | £ 350,000,000 | £ 208,000,000 | ||||
Treasury shares held in trust | 7,536,408 | 6,750,597 | 5,137,602 | ||||
Treasury shares repurchased | 162,645,590 | 162,645,590 | 162,645,590 | ||||
Other reserves | £ (333,000,000) | ||||||
B A T Industries Plc | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Other reserves | 483,000,000 | ||||||
Reynolds American Inc. | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Ownership interest acquired | 57.80% | ||||||
Merger Reserves | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Equity | 26,414,000,000 | £ 26,414,000,000 | £ 3,748,000,000 | ||||
Merger Reserves | Reynolds American Inc. | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Equity | £ 22,666,000,000 | ||||||
Merger Reserves | Rothmans International B.V. Group | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Equity | £ 3,748,000,000 | ||||||
Difference on Exchange Relating to Venezuela | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Differences on exchange | 107,000,000 | ||||||
Hedging Reserve | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Gain (loss) reported in revenue | 15,000,000 | 52,000,000 | (142,000,000) | ||||
Gain (loss) reported in raw materials and consumables | 23,000,000 | (27,000,000) | (2,000,000) | ||||
Gain (loss) reported in operating expenses | (7,000,000) | 4,000,000 | (6,000,000) | ||||
Gain (loss) reported in operating income | 0 | 0 | 9,000,000 | ||||
Gain (loss) reported in net finance costs | (14,000,000) | 80,000,000 | 93,000,000 | ||||
Ordinary Shares | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Shares issued under share option schemes | £ 4,000,000 | 5,000,000 | 4,000,000 | ||||
Convertible Redeemable Preference Shares | Rothmans | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Other reserves | £ 90,000,000 | ||||||
Associates | |||||||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||||||
Differences on exchange | (923,000,000) | 1,425,000,000 | |||||
Net fair value gains in respect of associates | 5,000,000 | 10,000,000 | |||||
Associates - share of OCI, net of tax | 25,000,000 | £ 20,000,000 | |||||
Debit on exchange | £ (545,000,000) |
Capital and Reserves - Reconc_5
Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Composition of Share Premium Account, Capital Redemption Reserves and Merger Reserves (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Equity | £ 65,688 | £ 60,981 | £ 8,406 | £ 5,032 |
Share Premium Account | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Equity | 91 | 87 | 82 | |
Capital Redemption Reserve | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Equity | 101 | 101 | 101 | |
Merger Reserves | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Equity | 26,414 | 26,414 | 3,748 | |
Share Premium, Capital Redemption and Merger Reserves | ||||
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items] | ||||
Equity | £ 26,606 | £ 26,602 | £ 3,931 | £ 3,927 |
Capital and Reserves - Reconc_6
Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Movements of Called Up Share Capital (Details) - Ordinary Shares | 12 Months Ended | ||
Dec. 31, 2018GBP (£)shares | Dec. 31, 2017GBP (£)shares | Dec. 31, 2016GBP (£)shares | |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Allotted and fully paid beginning balance | shares | 2,456,278,414 | 2,027,019,508 | 2,026,866,724 |
Changes during the year share option schemes | shares | 137,470 | 213,144 | 152,784 |
Changes during the year? Issue of shares RAI acquisition | shares | 429,045,762 | ||
Allotted and fully paid ending balance | shares | 2,456,415,884 | 2,456,278,414 | 2,027,019,508 |
Allotted and fully paid beginning balance | £ | £ 614,060,000 | £ 506,750,000 | £ 506,710,000 |
Changes during the year - share option schemes | £ | 30,000 | 50,000 | 40,000 |
Allotted and fully paid ending balance | £ | £ 614,090,000 | 614,060,000 | £ 506,750,000 |
– Issue of shares RAI acquisition | £ | £ 107,260,000 |
Capital and Reserves - Reconc_7
Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Movements in Other Reserves and Retained Earnings (Details) - GBP (£) £ in Millions | Nov. 15, 2018 | Aug. 08, 2018 | May 09, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | £ 60,981 | £ 8,406 | £ 5,032 | |||
Comprehensive income and expense | ||||||
Profit for the year | 6,210 | 4,839 | ||||
Differences on exchange | 3,868 | 1,270 | ||||
Cash flow hedges | ||||||
net fair value (losses)/gains | (58) | 29 | ||||
– reclassified and reported in profit for the year | 17 | 38 | ||||
– reclassified and reported in total assets | (12) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | (472) | (837) | ||||
– differences on exchange on borrowings | (236) | (124) | ||||
Associates – share of OCI, net of tax | (38) | 1,415 | ||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 18 | (19) | ||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 138 | (228) | ||||
– surplus recognition and minimum funding obligations | 4 | (1) | ||||
Associates – share of OCI, net of tax | 6 | 20 | ||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (33) | 36 | ||||
Cash flow hedges reclassified and reported in total assets | (22) | |||||
Employee share options | ||||||
– value of employee services | 121 | 71 | ||||
Dividends and other appropriations | ||||||
– ordinary shares | £ (1,115) | £ (1,112) | £ (1,117) | (4,463) | (2,910) | |
Purchase of own shares | ||||||
– held in employee share ownership trusts | (139) | (64) | ||||
Non-controlling interests – acquisitions | (11) | |||||
Other movements | (6) | 3 | ||||
Ending balance | 65,688 | 60,981 | 8,406 | |||
Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 60,981 | 8,406 | ||||
Comprehensive income and expense | ||||||
Profit for the year | 37,656 | |||||
Differences on exchange | (3,084) | |||||
Cash flow hedges | ||||||
net fair value (losses)/gains | (264) | |||||
– reclassified and reported in profit for the year | 109 | |||||
– reclassified and reported in total assets | (16) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | 425 | |||||
– differences on exchange on borrowings | (68) | |||||
Associates – share of OCI, net of tax | (918) | |||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 34 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 833 | |||||
– surplus recognition and minimum funding obligations | (6) | |||||
Associates – share of OCI, net of tax | 25 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (171) | |||||
Employee share options | ||||||
– value of employee services | 105 | |||||
Dividends and other appropriations | ||||||
– ordinary shares | (4,465) | |||||
Purchase of own shares | ||||||
– held in employee share ownership trusts | (205) | |||||
Other movements | 3 | |||||
Ending balance | 60,981 | 8,406 | ||||
Accounting policy change (IFRS 9) | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (38) | |||||
Purchase of own shares | ||||||
Ending balance | (38) | |||||
Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 60,943 | |||||
Purchase of own shares | ||||||
Ending balance | 60,943 | |||||
Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 60,943 | |||||
Purchase of own shares | ||||||
Ending balance | 60,943 | |||||
Translation Reserve | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (382) | (2,062) | ||||
Comprehensive income and expense | ||||||
Differences on exchange | 3,861 | 1,218 | ||||
Net investment hedges | ||||||
- net fair value gains/(losses) | (472) | (837) | ||||
– differences on exchange on borrowings | (236) | (124) | ||||
Associates – share of OCI, net of tax | (38) | 1,425 | ||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | (2) | |||||
Purchase of own shares | ||||||
Ending balance | (914) | (382) | ||||
Translation Reserve | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (4,029) | |||||
Comprehensive income and expense | ||||||
Differences on exchange | (3,082) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | 425 | |||||
– differences on exchange on borrowings | (67) | |||||
Associates – share of OCI, net of tax | (923) | |||||
Purchase of own shares | ||||||
Ending balance | (4,029) | |||||
Translation Reserve | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (4,029) | |||||
Purchase of own shares | ||||||
Ending balance | (4,029) | |||||
Hedging Reserve | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 4 | (33) | ||||
Cash flow hedges | ||||||
net fair value (losses)/gains | (58) | 28 | ||||
– reclassified and reported in profit for the year | 17 | 38 | ||||
– reclassified and reported in total assets | (12) | |||||
Net investment hedges | ||||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 18 | (17) | ||||
Retirement benefit schemes | ||||||
Cash flow hedges reclassified and reported in total assets | (22) | |||||
Purchase of own shares | ||||||
Ending balance | (177) | 4 | ||||
Hedging Reserve | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (132) | |||||
Cash flow hedges | ||||||
net fair value (losses)/gains | (263) | |||||
– reclassified and reported in profit for the year | 109 | |||||
– reclassified and reported in total assets | (16) | |||||
Net investment hedges | ||||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 34 | |||||
Purchase of own shares | ||||||
Ending balance | (132) | |||||
Hedging Reserve | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (132) | |||||
Purchase of own shares | ||||||
Ending balance | (132) | |||||
Available for Sale Reserve | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 39 | 49 | ||||
Investments held at fair value | ||||||
– reclassified and reported in retained earnings | (8) | |||||
Net investment hedges | ||||||
Associates – share of OCI, net of tax | (10) | |||||
Retirement benefit schemes | ||||||
Associates – share of OCI, net of tax | 6 | |||||
Purchase of own shares | ||||||
Ending balance | 6 | 39 | ||||
Available for Sale Reserve | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 17 | |||||
Investments held at fair value | ||||||
– net fair value losses | (27) | |||||
Net investment hedges | ||||||
Associates – share of OCI, net of tax | 5 | |||||
Purchase of own shares | ||||||
Ending balance | 17 | |||||
Available for Sale Reserve | Accounting policy change (IFRS 9) | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (9) | |||||
Purchase of own shares | ||||||
Ending balance | (9) | |||||
Available for Sale Reserve | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 8 | |||||
Purchase of own shares | ||||||
Ending balance | 8 | |||||
Revaluation Reserve | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 179 | 179 | ||||
Purchase of own shares | ||||||
Ending balance | 179 | 179 | ||||
Revaluation Reserve | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 179 | |||||
Purchase of own shares | ||||||
Ending balance | 179 | |||||
Revaluation Reserve | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 179 | |||||
Purchase of own shares | ||||||
Ending balance | 179 | |||||
Other | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 573 | 573 | ||||
Purchase of own shares | ||||||
Ending balance | 573 | 573 | ||||
Other | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 573 | |||||
Purchase of own shares | ||||||
Ending balance | 573 | |||||
Other | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 573 | |||||
Purchase of own shares | ||||||
Ending balance | 573 | |||||
Other Reserves | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (3,392) | 413 | (1,294) | |||
Comprehensive income and expense | ||||||
Differences on exchange | 3,861 | 1,218 | ||||
Cash flow hedges | ||||||
net fair value (losses)/gains | (58) | 28 | ||||
– reclassified and reported in profit for the year | 17 | 38 | ||||
– reclassified and reported in total assets | (12) | |||||
Investments held at fair value | ||||||
– reclassified and reported in retained earnings | (8) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | (472) | (837) | ||||
– differences on exchange on borrowings | (236) | (124) | ||||
Associates – share of OCI, net of tax | (38) | 1,415 | ||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 18 | (19) | ||||
Retirement benefit schemes | ||||||
Associates – share of OCI, net of tax | 6 | |||||
Cash flow hedges reclassified and reported in total assets | (22) | |||||
Purchase of own shares | ||||||
Ending balance | (333) | (3,392) | 413 | |||
Other Reserves | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (3,392) | 413 | ||||
Comprehensive income and expense | ||||||
Differences on exchange | (3,082) | |||||
Cash flow hedges | ||||||
net fair value (losses)/gains | (263) | |||||
– reclassified and reported in profit for the year | 109 | |||||
– reclassified and reported in total assets | (16) | |||||
Investments held at fair value | ||||||
– net fair value losses | (27) | |||||
Net investment hedges | ||||||
- net fair value gains/(losses) | 425 | |||||
– differences on exchange on borrowings | (67) | |||||
Associates – share of OCI, net of tax | (918) | |||||
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss | 34 | |||||
Purchase of own shares | ||||||
Ending balance | (3,392) | 413 | ||||
Other Reserves | Accounting policy change (IFRS 9) | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (9) | |||||
Purchase of own shares | ||||||
Ending balance | (9) | |||||
Other Reserves | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (3,401) | |||||
Purchase of own shares | ||||||
Ending balance | (3,401) | |||||
Other Reserves | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (3,401) | |||||
Purchase of own shares | ||||||
Ending balance | (3,401) | |||||
Treasury Shares | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (5,053) | (5,049) | ||||
Purchase of own shares | ||||||
– held in employee share ownership trusts | (139) | (64) | ||||
Other movements | 92 | 60 | ||||
Ending balance | (5,242) | (5,053) | ||||
Treasury Shares | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (5,195) | |||||
Purchase of own shares | ||||||
– held in employee share ownership trusts | (205) | |||||
Other movements | 63 | |||||
Ending balance | (5,195) | |||||
Treasury Shares | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (5,195) | |||||
Purchase of own shares | ||||||
Ending balance | (5,195) | |||||
Retained Earnings Other | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 8,384 | 6,803 | ||||
Comprehensive income and expense | ||||||
Profit for the year | 6,032 | 4,648 | ||||
Investments held at fair value | ||||||
– reclassified and reported in retained earnings | 8 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 138 | (231) | ||||
– surplus recognition and minimum funding obligations | 4 | |||||
Associates – share of OCI, net of tax | 20 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (33) | 36 | ||||
Employee share options | ||||||
– value of employee services | 121 | 71 | ||||
Dividends and other appropriations | ||||||
– ordinary shares | (4,463) | (2,910) | ||||
Purchase of own shares | ||||||
Non-controlling interests – acquisitions | (11) | 4 | ||||
Other movements | (98) | (57) | ||||
Ending balance | 43,799 | £ 8,384 | ||||
Retained Earnings Other | Restatement Adjustments | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | 42,130 | |||||
Comprehensive income and expense | ||||||
Profit for the year | 37,485 | |||||
Retirement benefit schemes | ||||||
– net actuarial gains/(losses) | 832 | |||||
– surplus recognition and minimum funding obligations | (5) | |||||
Associates – share of OCI, net of tax | 25 | |||||
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss | (171) | |||||
Employee share options | ||||||
– value of employee services | 105 | |||||
Dividends and other appropriations | ||||||
– ordinary shares | (4,465) | |||||
Purchase of own shares | ||||||
– held in employee share ownership trusts | 0 | |||||
Other movements | (60) | |||||
Ending balance | 42,130 | |||||
Retained Earnings Other | Accounting policy change (IFRS 9) | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | (29) | |||||
Purchase of own shares | ||||||
Ending balance | (29) | |||||
Retained Earnings Other | Revised for IFRS 9 | ||||||
Disclosure Of Reserves Within Equity [Line Items] | ||||||
Beginning balance | £ 42,101 | |||||
Purchase of own shares | ||||||
Ending balance | £ 42,101 |
Capital and Reserves - Reconc_8
Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Tax Attributable to Components of Other Comprehensive Income (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
Total tax recognised in other comprehensive income for the year | £ (15) | £ (137) | £ 17 |
Translation Reserve | Net Investment Hedges | |||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
– net fair value losses | (2) | ||
Total tax recognised in other comprehensive income for the year | (2) | ||
Hedging Reserve | Cash Flow Hedges | |||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
– net fair value losses | 18 | 34 | (11) |
reclassified and reported in profit for the year | (6) | ||
Total tax recognised in other comprehensive income for the year | 18 | 34 | (17) |
Retained Earnings | |||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
actuarial losses/(gains) in respect of subsidiaries | (33) | (171) | 36 |
Total tax recognised in other comprehensive income for the year | (33) | (171) | 36 |
Owners of the Parent | |||
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items] | |||
Total tax recognised in other comprehensive income for the year | £ (15) | £ (137) | £ 17 |
Borrowings - Schedule of Detail
Borrowings - Schedule of Detailed Information About Borrowings (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bonds and notes | £ 42,218 | £ 42,781 |
Commercial paper | 536 | 1,200 |
Other loans | 3,859 | 4,466 |
Bank loans | 608 | 512 |
Bank overdrafts | 274 | 469 |
Finance leases | 14 | 22 |
Borrowings | £ 47,509 | 49,450 |
Eurobonds One | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | Euro | |
Bonds and notes | £ 8,717 | 8,585 |
Eurobonds One | Bottom of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2019 | |
Borrowings, interest rate | 0.40% | |
Eurobonds One | Top of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2045 | |
Borrowings, interest rate | 4.90% | |
Eurobonds Two | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | Euro | |
Borrowings, maturity | 2021 | |
Borrowings, interest rate basis | 3m EURIBOR +50bps | |
Bonds and notes | £ 986 | 1,326 |
Adjustment to interest rate basis | 0.50% | |
Eurobonds Three | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | UK sterling | |
Bonds and notes | £ 4,671 | 4,680 |
Eurobonds Three | Bottom of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2019 | |
Borrowings, interest rate | 1.80% | |
Eurobonds Three | Top of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2055 | |
Borrowings, interest rate | 7.30% | |
Eurobonds Four | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | US dollar | |
Borrowings, maturity | 2019 | |
Borrowings, interest rate | 1.60% | |
Bonds and notes | £ 512 | 482 |
Eurobonds Five | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | Swiss franc | |
Bonds and notes | £ 523 | 498 |
Eurobonds Five | Bottom of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2021 | |
Borrowings, interest rate | 0.60% | |
Eurobonds Five | Top of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2026 | |
Borrowings, interest rate | 1.40% | |
Bonds Issued One | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | US dollar | |
Bonds and notes | £ 25,428 | 25,545 |
Bonds Issued One | Bottom of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2019 | |
Borrowings, interest rate | 2.30% | |
Bonds Issued One | Top of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2047 | |
Borrowings, interest rate | 8.10% | |
Bonds Issued Two | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Currency | US dollar | |
Borrowings, interest rate basis | USD 3m LIBOR + 59bps to 88bps | |
Bonds and notes | £ 1,381 | £ 1,665 |
Bonds Issued Two | Bottom of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2020 | |
Adjustment to interest rate basis | 0.59% | |
Bonds Issued Two | Top of Range | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, maturity | 2022 | |
Adjustment to interest rate basis | 0.88% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Interest payable | £ 470 | £ 445 |
Borrowings | 47,509 | 49,450 |
Borrowings subject to fair value hedges, Increase in amortised cost | 179 | 208 |
Borrowing amounts secured on group assets | 75 | 159 |
Finance leases secured on group assets | 14 | 20 |
Finance leases | 14 | 22 |
Undrawn committed borrowing facilities | 6,000 | 5,400 |
Within One Year | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,225 | 5,423 |
Finance leases | 7 | 10 |
Undrawn committed borrowing facilities | 3,000 | 2,400 |
Between One and Five Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Finance leases | 7 | 12 |
Between Two and Three Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 2,958 | 7,011 |
Undrawn committed borrowing facilities | 3,000 | |
Between Three and Four Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 7,095 | 2,913 |
Undrawn committed borrowing facilities | 3,000 | |
At Fair Value | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 44,457 | 50,449 |
At Fair Value | Quoted Market Prices | Level 1 | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 39,169 | 43,780 |
At Fair Value | Discounted Cash Flow | Level 2 | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,288 | 6,669 |
Borrowings Subject to Fair Value Hedges | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | £ 6,245 | £ 6,690 |
Commercial Papers | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate basis | USD LIBOR plus a margin ranging between 22 and 65 basis points and EURIBOR plus a margin ranging between 8 and 15 basis points (2017: USD LIBOR plus a margin ranging between 19 and 38 basis points and EURIBOR plus a margin ranging between 10 and 24 basis points | |
USD LIBOR | Bottom of Range | Commercial Papers | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Adjustment to interest rate basis | 0.22% | 0.19% |
USD LIBOR | Top of Range | Commercial Papers | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Adjustment to interest rate basis | 0.65% | 0.38% |
EURIBOR | Bottom of Range | Commercial Papers | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Adjustment to interest rate basis | 0.08% | 0.10% |
EURIBOR | Top of Range | Commercial Papers | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Adjustment to interest rate basis | 0.15% | 0.24% |
Borrowings - Schedule of Deta_2
Borrowings - Schedule of Detailed Information About Repayment of Borrowings (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | £ 47,509 | £ 49,450 |
Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 62,498 | 64,843 |
Within One Year | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,225 | 5,423 |
Within One Year | Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 5,636 | 6,381 |
Between One and Two Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 7,261 | 2,344 |
Between One and Two Years | Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 8,471 | 3,609 |
Between Two and Three Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 2,958 | 7,011 |
Between Two and Three Years | Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 4,086 | 8,141 |
Between Three and Four Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 7,095 | 2,913 |
Between Three and Four Years | Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 8,131 | 4,034 |
Between Four and Five Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 2,580 | 6,857 |
Between Four and Five Years | Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 3,462 | 7,836 |
Beyond 5 Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | 23,390 | 24,902 |
Beyond 5 Years | Contractual Gross Maturities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings | £ 32,712 | £ 34,842 |
Borrowings - Schedule of Analys
Borrowings - Schedule of Analysis of Borrowings by Currency (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | £ 47,509 | £ 49,450 |
Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 47,509 | 49,450 |
Borrowings net, derivative instruments adjustment | 47,184 | 49,058 |
Cross-currency Swaps | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (313) | (387) |
Forward Foreign Currency Contracts | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (12) | (5) |
Functional Currency | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 32,612 | 32,580 |
Borrowings net, derivative instruments adjustment | 34,736 | 35,341 |
Functional Currency | Cross-currency Swaps | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 4,029 | 3,903 |
Functional Currency | Forward Foreign Currency Contracts | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (1,905) | (1,142) |
US Dollar | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 3,803 | 4,789 |
Borrowings net, derivative instruments adjustment | 5,781 | 5,727 |
US Dollar | Cross-currency Swaps | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 17 | 16 |
US Dollar | Forward Foreign Currency Contracts | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 1,961 | 922 |
UK sterling | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 450 | 450 |
UK sterling | Cross-currency Swaps | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (450) | (450) |
Euro | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 10,089 | 10,837 |
Borrowings net, derivative instruments adjustment | 6,047 | 6,836 |
Euro | Cross-currency Swaps | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (3,653) | (3,613) |
Euro | Forward Foreign Currency Contracts | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (389) | (388) |
Canadian Dollar | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings net, derivative instruments adjustment | 215 | |
Canadian Dollar | Forward Foreign Currency Contracts | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 215 | |
Other Currencies | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 555 | 794 |
Borrowings net, derivative instruments adjustment | 620 | 939 |
Other Currencies | Cross-currency Swaps | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (256) | (243) |
Other Currencies | Forward Foreign Currency Contracts | Currency Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | £ 321 | £ 388 |
Borrowings - Schedule of Anal_2
Borrowings - Schedule of Analysis of Borrowings by Interest Rate Changes (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | £ 47,509 | £ 49,450 |
Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 47,509 | 49,450 |
Borrowings net, derivative instruments adjustment | 47,196 | 49,063 |
Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (313) | (387) |
Within 1 Year | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 4,225 | 5,423 |
Within 1 Year | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 10,384 | 12,516 |
Borrowings net, derivative instruments adjustment | 14,771 | 16,798 |
Within 1 Year | Interest Rate Risk | Interest Rate Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 3,069 | 2,995 |
Within 1 Year | Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | 1,318 | 1,287 |
Between 1-2 Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 7,261 | 2,344 |
Between 1-2 Years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 4,540 | 2,325 |
Borrowings net, derivative instruments adjustment | 3,951 | 2,308 |
Between 1-2 Years | Interest Rate Risk | Interest Rate Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (589) | |
Between 1-2 Years | Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (17) | |
Between 2-3 Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 2,958 | 7,011 |
Between 2-3 Years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 1,967 | 4,321 |
Borrowings net, derivative instruments adjustment | 635 | 3,767 |
Between 2-3 Years | Interest Rate Risk | Interest Rate Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (539) | (554) |
Between 2-3 Years | Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (793) | |
Between 3-4 Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 7,095 | 2,913 |
Between 3-4 Years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 4,577 | 1,941 |
Borrowings net, derivative instruments adjustment | 4,341 | 633 |
Between 3-4 Years | Interest Rate Risk | Interest Rate Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (236) | (533) |
Between 3-4 Years | Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (775) | |
Between 4-5 Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 2,580 | 6,857 |
Between 4-5 Years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 2,585 | 4,332 |
Borrowings net, derivative instruments adjustment | 1,885 | 4,110 |
Between 4-5 Years | Interest Rate Risk | Interest Rate Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (222) | |
Between 4-5 Years | Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (700) | |
Beyond Five Years | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 23,390 | 24,902 |
Beyond Five Years | Interest Rate Risk | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | 23,456 | 24,015 |
Borrowings net, derivative instruments adjustment | 21,613 | 21,447 |
Beyond Five Years | Interest Rate Risk | Interest Rate Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | (1,705) | (1,686) |
Beyond Five Years | Interest Rate Risk | Cross-currency Swaps | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Effect of derivative financial instruments | £ (138) | £ (882) |
Borrowings - Schedule of Anal_3
Borrowings - Schedule of Analysis of Net Debt (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Detailed Information About Borrowings [Abstract] | |||
Borrowings | £ 47,509 | £ 49,450 | |
Derivatives in respect of net debt, assets | (647) | (640) | |
Liabilities, Derivatives - in respect of net debt | 269 | 117 | |
Cash and cash equivalents (note 18) | (2,602) | (3,291) | |
Current investments held at fair value | (178) | (65) | |
Net Debt | £ 44,351 | £ 45,571 | £ 16,767 |
Borrowings - Schedule of Anal_4
Borrowings - Schedule of Analysis of Net Debt (Parenthetical) (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Reynolds American Inc. | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Purchase price adjustments relating to acquisition | £ 944 | £ 947 |
Borrowings - Schedule of Anal_5
Borrowings - Schedule of Analysis of Net Debt Movements (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | £ 45,571 | £ 16,767 |
Accounting policy change (IFRS 9) | (144) | |
Revised opening balance | 45,427 | |
Net debt, Subsidiaries acquired | (1) | 9,915 |
Net debt, Cash flow | (2,996) | 19,763 |
Net debt, Foreign exchange, accrued interest and other | 1,921 | (874) |
Net debt, Closing balance | 44,351 | 45,571 |
Borrowings | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | 49,450 | 19,495 |
Revised opening balance | 49,450 | |
Net debt, Subsidiaries acquired | 11,203 | |
Net debt, Cash flow | (3,671) | 20,024 |
Net debt, Foreign exchange, accrued interest and other | 1,730 | (1,272) |
Net debt, Closing balance | 47,509 | 49,450 |
Derivatives in Respect of Net Debt, Assets | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | (640) | (809) |
Revised opening balance | (640) | |
Net debt, Cash flow | 109 | 106 |
Net debt, Foreign exchange, accrued interest and other | (116) | 63 |
Net debt, Closing balance | (647) | (640) |
Derivatives in Respect of Net Debt, Liabilities | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | 117 | 300 |
Revised opening balance | 117 | |
Net debt, Cash flow | (6) | (380) |
Net debt, Foreign exchange, accrued interest and other | 158 | 197 |
Net debt, Closing balance | 269 | 117 |
Cash and Cash Equivalents | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | (3,291) | (2,204) |
Revised opening balance | (3,291) | |
Net debt, Subsidiaries acquired | (1) | (1,288) |
Net debt, Cash flow | 563 | 57 |
Net debt, Foreign exchange, accrued interest and other | 127 | 144 |
Net debt, Closing balance | (2,602) | (3,291) |
Current Investments Held at Fair Value | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Net debt, Opening balance | (65) | (15) |
Accounting policy change (IFRS 9) | (144) | |
Revised opening balance | (209) | |
Net debt, Cash flow | 9 | (44) |
Net debt, Foreign exchange, accrued interest and other | 22 | (6) |
Net debt, Closing balance | £ (178) | £ (65) |
Provisions for liabilities - Su
Provisions for liabilities - Summary of Provisions Excluding Post-Retirement Benefits (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | £ 753 | £ 793 |
Differences on exchange | (18) | (21) |
Subsidiaries acquired | 42 | |
Provided in respect of the year | 101 | 282 |
Utilised during the year | (187) | (343) |
Ending balance | 649 | 753 |
– current | 318 | 399 |
– non-current | 331 | 354 |
Restructuring of Existing Businesses | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 158 | 190 |
Differences on exchange | 4 | |
Provided in respect of the year | 41 | 172 |
Utilised during the year | (72) | (208) |
Ending balance | 127 | 158 |
– current | 74 | 87 |
– non-current | 53 | 71 |
Employee Related Benefits | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 40 | 40 |
Differences on exchange | (3) | (3) |
Provided in respect of the year | 10 | 15 |
Utilised during the year | (14) | (12) |
Ending balance | 33 | 40 |
– current | 17 | 24 |
– non-current | 16 | 16 |
Fox River | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 138 | 163 |
Utilised during the year | (30) | (25) |
Ending balance | 108 | 138 |
– current | 19 | 22 |
– non-current | 89 | 116 |
Other Provisions | ||
Disclosure Of Other Provisions [Line Items] | ||
Beginning balance | 417 | 400 |
Differences on exchange | (15) | (22) |
Subsidiaries acquired | 42 | |
Provided in respect of the year | 50 | 95 |
Utilised during the year | (71) | (98) |
Ending balance | 381 | 417 |
– current | 208 | 266 |
– non-current | £ 173 | £ 151 |
Provisions for liabilities - Ad
Provisions for liabilities - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2011GBP (£) | |
Disclosure Of Other Provisions [Line Items] | ||||
Payments for funding agreement | £ 25 | $ 32 | £ 18 | |
Restructuring of Existing Businesses | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Noncurrent provisions relates to termination payments | £ 53 | |||
Estimated unwind percentage of noncurrent provisions relates to termination payments | 30.00% | 30.00% | ||
Reversals of unused provisions | £ 12 | 7 | ||
Employee Related Benefits | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Noncurrent provisions | £ 16 | |||
Estimated unwind percentage of noncurrent provisions | 30.00% | 30.00% | ||
Reversals of unused provisions | £ 4 | 5 | ||
Fox River | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Provision made during period | £ 274 | |||
Legal costs incurred | 5 | 7 | ||
Other Provisions | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Reversals of unused provisions | 111 | £ 49 | ||
Trade And Other Payables | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Reversals of unused provisions | £ 56 | |||
Top of Range | Restructuring of Existing Businesses | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Expected unwind period | 5 years | 5 years | ||
Top of Range | Employee Related Benefits | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Expected unwind period | 5 years | 5 years | ||
Top of Range | Fox River | ||||
Disclosure Of Other Provisions [Line Items] | ||||
Expected unwind period | 5 years | 5 years |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade And Other Payables [Line Items] | ||
Trade payables | £ 3,557 | |
Duty, excise and other taxes | 3,519 | |
Accrued charges and deferred income | 2,038 | |
FII GLO deferred income | 963 | £ 963 |
Social security and other taxation | 55 | |
Sundry payables | 1,554 | |
Trade and other payables | 11,686 | |
Trade and other payables, current | 10,631 | |
Trade and other payables, non-current | £ 1,055 | |
Restatement Adjustments | ||
Trade And Other Payables [Line Items] | ||
Trade payables | 2,298 | |
Duty, excise and other taxes | 3,577 | |
Accrued charges and deferred income | 1,807 | |
FII GLO deferred income | 963 | |
Social security and other taxation | 50 | |
Sundry payables | 1,271 | |
Trade and other payables | 9,966 | |
Trade and other payables, current | 8,908 | |
Trade and other payables, non-current | £ 1,058 |
Trade and Other Payables - Addi
Trade and Other Payables - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade And Other Payables [Line Items] | ||
Interest payable | £ 51 | £ 16 |
Deferred income | 5 | 8 |
FII GLO deferred income | £ 963 | £ 963 |
Percentage of trade and other payables denominated in other than the functional currency of the subsidiary | 5.00% | 5.00% |
Trade And Other Payables | ||
Trade And Other Payables [Line Items] | ||
Cash collected debt factoring arrangements | £ 118 | £ 108 |
Supply Chain Financing Arrangements | ||
Trade And Other Payables [Line Items] | ||
Trade and other payables | £ 45 | £ 45 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Additional Information (Details) € in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Nov. 30, 2018 | Jun. 30, 2018USD ($) | Mar. 31, 2018EUR (€) | Jan. 31, 2018GBP (£) | Aug. 31, 2017USD ($)Bond | Jul. 31, 2017GBP (£) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Aug. 31, 2017GBP (£) | Aug. 31, 2017EUR (€) | Jul. 31, 2017USD ($) | Apr. 30, 2017GBP (£) | Mar. 31, 2017GBP (£) | |
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Proportion of average cost of debt | 3.00% | 3.30% | |||||||||||||||||
Commercial paper | £ 536,000,000 | £ 1,200,000,000 | |||||||||||||||||
Cash and cash equivalents | 2,602,000,000 | 3,291,000,000 | |||||||||||||||||
Repayments of borrowings | 5,596,000,000 | £ 3,840,000,000 | |||||||||||||||||
Bank loans | 608,000,000 | 512,000,000 | |||||||||||||||||
Impact of 10% strengthening of functional currencies against non-functional currencies on pre-tax profit | 33,000,000 | (14,000,000) | 2,000,000 | ||||||||||||||||
Impact of 10% strengthening of functional currencies against non-functional currencies on items recognised directly in other comprehensive income | 384,000,000 | 148,000,000 | 413,000,000 | ||||||||||||||||
Impact of 10% weakening of functional currencies against non-functional currencies on pre-tax profit | (41,000,000) | 4,000,000 | (4,000,000) | ||||||||||||||||
Impact of 10% weakening of functional currencies against non-functional currencies on items recognised directly in other comprehensive income | £ 469,000,000 | 148,000,000 | 505,000,000 | ||||||||||||||||
Maximum exposure to credit risk | 3,000,000 | ||||||||||||||||||
Financial assets maturity period | 1 year | ||||||||||||||||||
Financial Liabilities maturity period | 1 year | ||||||||||||||||||
Net Investment Hedges | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Changes in fair value used for calculating hedge ineffectiveness for 2018 | £ (226,000,000) | ||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Cash flow hedge reserve for borrowings | 146,000,000 | ||||||||||||||||||
Total cash flow hedge reserve | 177,000,000 | ||||||||||||||||||
Gain in relation to deferred tax arising from cash flow hedges | 48,000,000 | ||||||||||||||||||
Forecasted Borrowings Subject to Fair Value Hedges | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Loss in relation to interest rate exposure on forecasted borrowings | 98,000,000 | ||||||||||||||||||
Leaf Supply Arrangements | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Maximum exposure to credit risk | 102,000,000 | 96,000,000 | |||||||||||||||||
US Dollar | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Cash and cash equivalents | 158,000,000 | 161,000,000 | |||||||||||||||||
Euro | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Cash and cash equivalents | 174,000,000 | 159,000,000 | |||||||||||||||||
Short Term Credit Facility | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Maximum exposure to credit risk | £ 102,000,000 | £ 116,000,000 | |||||||||||||||||
Liquidity Risk | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Target average centrally managed debt maturity | 5 years | ||||||||||||||||||
Average centrally managed debt maturity | 8 years 9 months 18 days | 9 years 2 months 12 days | |||||||||||||||||
Peak maturity of centrally managed debt maturing in a rolling 12-month period | 18.40% | 13.20% | 18.40% | 18.40% | 13.20% | ||||||||||||||
Commercial paper | $ 4,000 | € 3,000,000 | |||||||||||||||||
Outstanding amount on commercial paper | £ 536,000,000 | £ 1,200,000,000 | |||||||||||||||||
Ownership interest acquired | 57.80% | ||||||||||||||||||
Repayments of bonds at maturity | $ 500 | $ 600 | € 1,250,000 | ||||||||||||||||
Bonds issued | £ 1,600,000,000 | £ 1,600,000,000 | |||||||||||||||||
Bank loans | $ | $ 25,000 | ||||||||||||||||||
Number of series of bonds issued under EMTN programme | Bond | 4 | ||||||||||||||||||
Percentage of bonds exchanged | 99.70% | ||||||||||||||||||
Liquidity Risk | 364-day Revolving Credit Facility | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Repayments of borrowings | £ 600,000,000 | ||||||||||||||||||
Period of borrowings maturity | 364 days | 364 days | |||||||||||||||||
Borrowings capacity | £ 3,000,000,000 | £ 3,000,000,000 | |||||||||||||||||
Extension option on borrowings | 1 year | 1 year | |||||||||||||||||
Repayments of bonds at maturity | $ 2,500 | € 400,000 | |||||||||||||||||
Term out option on borrowings | 1 year | ||||||||||||||||||
Liquidity Risk | Bridge Facilities One Year Maturity | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Period of borrowings maturity | 1 year | ||||||||||||||||||
Bank loans | $ | 15,000 | ||||||||||||||||||
Liquidity Risk | Bridge Facilities Two Year Maturity | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Period of borrowings maturity | 2 years | ||||||||||||||||||
Bank loans | $ | 5,000 | ||||||||||||||||||
Liquidity Risk | Term Loans With Maturity In 2020 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bank loans | £ 1,900,000,000 | 2,500 | |||||||||||||||||
Borrowings, maturity | 2020 | ||||||||||||||||||
Liquidity Risk | Term Loans With Maturity In 2022 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bank loans | £ 1,900,000,000 | $ 2,500 | |||||||||||||||||
Borrowings, maturity | 2022 | ||||||||||||||||||
Liquidity Risk | Bonds Under EMTN Programme Maturing in August 2025 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bonds issued | £ 450,000,000 | ||||||||||||||||||
Borrowings, maturity | August 2025 | ||||||||||||||||||
Liquidity Risk | Euro Denominated Bonds Under EMTN Programme | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bonds issued | € | € 3,100,000 | ||||||||||||||||||
Number of Bonds | Bond | 3 | ||||||||||||||||||
Liquidity Risk | Euro Denominated Bonds Under EMTN Programme Maturing in August 2021 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bonds issued | € | 1,100,000 | ||||||||||||||||||
Borrowings, maturity | August 2021 | ||||||||||||||||||
Liquidity Risk | Euro Denominated Bonds Under EMTN Programme Maturing in November 2023 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bonds issued | € | 750,000 | ||||||||||||||||||
Borrowings, maturity | November 2023 | ||||||||||||||||||
Liquidity Risk | Euro Denominated Bonds Under EMTN Programme Maturing in January 2030 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bonds issued | € | 1,250,000 | ||||||||||||||||||
Borrowings, maturity | January 2030 | ||||||||||||||||||
Liquidity Risk | U S D Denominated Bonds | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Bonds issued | € | € 17,250 | ||||||||||||||||||
Number of Bonds | Bond | 8 | ||||||||||||||||||
Liquidity Risk | Revolving Credit Facility Maturing in 2021 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Borrowings capacity | 3,000,000,000 | ||||||||||||||||||
Drawings from current borrowing capacity | 600,000,000 | ||||||||||||||||||
Liquidity Risk | Two-tranche Revolving Credit Facility | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Borrowings capacity | £ 6,000,000,000 | ||||||||||||||||||
Liquidity Risk | New Revolving Credit Facility Maturing in 2021 | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Borrowings capacity | £ 3,000,000,000 | ||||||||||||||||||
Borrowings, maturity | 2021 | ||||||||||||||||||
Liquidity Risk | Money Market Fund | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Cash and cash equivalents | £ 25,000,000 | £ 668,000,000 | |||||||||||||||||
Liquidity Risk | Top of Range | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Target centrally managed debt maturing in a rolling 12-month period | 20.00% | ||||||||||||||||||
EMTN Programme | 25,000,000,000 | ||||||||||||||||||
Liquidity Risk | Top of Range | US Commercial Paper Programme | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Euro Medium Term Note Programme | $ | $ 4,000 | ||||||||||||||||||
Liquidity Risk | Top of Range | Euro Commercial Paper (ECP) Programme | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Euro Medium Term Note Programme | 3,000,000,000 | ||||||||||||||||||
Liquidity Risk | Bottom of Range | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
EMTN Programme | 15,000,000,000 | ||||||||||||||||||
Liquidity Risk | Bottom of Range | US Commercial Paper Programme | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Euro Medium Term Note Programme | $ | $ 3,000 | ||||||||||||||||||
Liquidity Risk | Bottom of Range | Euro Commercial Paper (ECP) Programme | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Euro Medium Term Note Programme | £ 1,000,000,000 | ||||||||||||||||||
Currency Risk | US Dollar | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Percentage of gross debt after taking into account derivative contracts | 65.00% | 62.00% | 65.00% | 65.00% | 62.00% | ||||||||||||||
Currency Risk | Euro | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Percentage of gross debt after taking into account derivative contracts | 13.00% | 14.00% | 13.00% | 13.00% | 14.00% | ||||||||||||||
Currency Risk | UK sterling | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Percentage of gross debt after taking into account derivative contracts | 16.00% | 20.00% | 16.00% | 16.00% | 20.00% | ||||||||||||||
Currency Risk | Rest of Group | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Percentage of gross debt after taking into account derivative contracts | 6.00% | 4.00% | 6.00% | 6.00% | 4.00% | ||||||||||||||
Interest Rate Risk | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Description of hedging instruments | The Group targets an interest cover ratio, as calculated under its key central banking facilities, of greater than 5 and for 2018 it is 7.2 times (2017: 7.8 times; 2016: 12.2 times). The only externally imposed capital requirement the Group has is in respect of its centrally managed banking facilities, which require a gross interest cover of at least 4.5 times. | ||||||||||||||||||
Description of interest rate sensitivity | IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of hypothetical changes of interest rates in respect of financial assets and liabilities of the Group. All other variables are held constant although, in practice, market rates rarely change in isolation. For the purposes of this sensitivity analysis, financial assets and liabilities with fixed interest rates are not included. The Group considers a 100 basis point change in interest rates a reasonably possible change except where rates are less than 100 basis points. In these instances it is assumed that the interest rates increase by 100 basis points and decrease to zero for the purpose of performing the sensitivity analysis. The impact is calculated with reference to the financial asset or liability held as at the year-end, unless this is unrepresentative of the position during the year. | ||||||||||||||||||
Borrowings, interest rate basis | 1.00% | 1.00% | 1.00% | ||||||||||||||||
Decrease in pre-tax profit based on 100 basis point increase in interest rates | £ 90,000,000 | £ 108,000,000 | 37,000,000 | ||||||||||||||||
Increase in pre-tax profit based on 100 basis point decrease in interest rates, or less | £ 74,000,000 | £ 77,000,000 | £ 16,000,000 | ||||||||||||||||
Interest Rate Risk | Fixed Rate | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Target for floating to fixed rate debt | 50.00% | 50.00% | 50.00% | ||||||||||||||||
Borrowings, adjustment to interest rate on a fixed basis, description | At 31 December 2018, the relevant ratios of floating to fixed rate borrowings were 21:79 (2017: 19:81) on a net basis. | ||||||||||||||||||
Credit Risk | |||||||||||||||||||
Disclosure Of Fair Value Measurement Of Liabilities [Line Items] | |||||||||||||||||||
Concentrations of customer credit risk | No significant concentrations of customer credit risk |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Summary of Assets and Liabilities Measured at Fair Value (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 217 | £ 107 |
Assets | 735 | 818 |
Assets at fair value | 952 | 925 |
Liabilities | 516 | 234 |
Liabilities at fair value | 516 | 234 |
Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 141 | 91 |
Assets at fair value | 141 | 91 |
Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 735 | 818 |
Liabilities at fair value | 516 | 234 |
Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 76 | 16 |
Assets at fair value | 76 | 16 |
Interest Rate Swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 187 | 166 |
Liabilities | 181 | 91 |
Interest Rate Swaps | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 187 | 166 |
Liabilities | 181 | 91 |
Cross-Currency Swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 431 | 450 |
Liabilities | 56 | |
Cross-Currency Swaps | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 431 | 450 |
Liabilities | 56 | |
Forward Foreign Currency Contracts | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 117 | 202 |
Liabilities | 279 | 143 |
Forward Foreign Currency Contracts | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 117 | 202 |
Liabilities | £ 279 | £ 143 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Summary of Derivative Financial Asset and Liabilities Offsetting Arrangements (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items] | ||
Amount presented in the Group balance sheet | £ 219 | £ 584 |
Net amount | 219 | 584 |
Financial Derivative Assets | ||
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items] | ||
Amount presented in the Group balance sheet | 735 | 818 |
Related amounts not offset in the Group balance sheet | (295) | (211) |
Net amount | 440 | 607 |
Financial Derivative Liabilities | ||
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items] | ||
Amount presented in the Group balance sheet | (516) | (234) |
Related amounts not offset in the Group balance sheet | 295 | 211 |
Net amount | £ (221) | £ (23) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Schedule of Detailed Information About Hedged Items by Risk Category (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Fair Value Hedges | |
Disclosure Of Detailed Information About Borrowings [Line Items] | |
Line item in the statement of financial position where the hedged item is included | Borrowings |
Changes in fair value used for calculating hedge ineffectiveness | £ (32) |
Fair Value Hedges | Liabilities | |
Disclosure Of Detailed Information About Borrowings [Line Items] | |
Carrying amount of the hedged item | 6,424 |
Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item | £ 179 |
Cash Flow Hedges | |
Disclosure Of Detailed Information About Borrowings [Line Items] | |
Line item in the statement of financial position where the hedged item is included | Borrowings |
Changes in fair value used for calculating hedge ineffectiveness | £ 189 |
Cash flow hedge reserve | (146) |
Cash Flow Hedges | Liabilities | |
Disclosure Of Detailed Information About Borrowings [Line Items] | |
Carrying amount of the hedged item | £ 2,819 |
Business Combinations, Dispos_2
Business Combinations, Disposals and Other Changes in the Group - Additional Information (Details) € in Millions, £ in Millions | Aug. 01, 2017GBP (£) | Jul. 25, 2017GBP (£)shares | Jul. 25, 2017GBP (£)$ / sharesshares | May 05, 2017GBP (£) | Apr. 05, 2017GBP (£) | Jan. 04, 2017GBP (£) | Apr. 20, 2016GBP (£) | Feb. 05, 2016GBP (£) | Dec. 30, 2015GBP (£) | Nov. 17, 2015GBP (£) | Oct. 16, 2015 | Sep. 30, 2015GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | Jan. 10, 2019GBP (£) | Nov. 22, 2018GBP (£) | Sep. 26, 2018GBP (£) | Sep. 30, 2015EUR (€) |
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Goodwill | £ 46,163 | £ 44,147 | ||||||||||||||||||
Consideration paid for additional interest acquired | 11 | £ 70 | ||||||||||||||||||
AYR Limited [Member] | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Acquisition of minority stake | £ 8 | |||||||||||||||||||
Reynolds American Inc. | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Jul. 25, 2017 | |||||||||||||||||||
Percentage of equity interest proposed to acquire | 57.80% | |||||||||||||||||||
Consideration paid | £ 41,800 | |||||||||||||||||||
Cash Consideration Paid | $ / shares | $ 29.44 | |||||||||||||||||||
Share Consideration Received | shares | 0.5260 | 0.5260 | ||||||||||||||||||
Fair value of consideration | £ 41,770 | $ 41,770 | ||||||||||||||||||
Fair Value of non-cash consideration paid to RAI shareholders | 22,828 | |||||||||||||||||||
Non-cash consideration paid to RAI shareholders | £ 22,773 | |||||||||||||||||||
Acquisition percentage | 100.00% | 100.00% | ||||||||||||||||||
Value attributable to BAT shareholding | £ 30,145 | $ 30,145 | ||||||||||||||||||
Total | 71,915 | 71,915 | ||||||||||||||||||
Goodwill | 34,280 | 34,280 | 35,117 | 33,062 | ||||||||||||||||
Intangible assets | £ 75,482 | $ 75,482 | ||||||||||||||||||
Quantus Beteiligungsund Mb H | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Fair value of consideration | £ 21 | |||||||||||||||||||
Goodwill | 11 | |||||||||||||||||||
Intangible assets | £ 13 | |||||||||||||||||||
Star Way Limited | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Fair value of consideration | £ 6 | |||||||||||||||||||
Acquisition percentage | 44.00% | |||||||||||||||||||
Goodwill | £ 3 | |||||||||||||||||||
Fabrika Duhana Sarajevo d.d | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Aug. 1, 2017 | |||||||||||||||||||
Fair value of consideration | £ 39 | |||||||||||||||||||
Intangible assets | 39 | |||||||||||||||||||
Goodwill | £ 2 | |||||||||||||||||||
Bulgartabac Holding AD | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | May 5, 2017 | |||||||||||||||||||
Fair value of consideration | £ 110 | |||||||||||||||||||
Intangible assets | 95 | 117 | ||||||||||||||||||
Goodwill | 22 | 0 | ||||||||||||||||||
Contingent consideration payable | £ 28 | 14 | ||||||||||||||||||
Must Have Limited | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Apr. 5, 2017 | |||||||||||||||||||
Fair value of consideration | £ 12 | |||||||||||||||||||
Intangible assets | 9 | |||||||||||||||||||
Goodwill | £ 1 | |||||||||||||||||||
Winnington Holding AB | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Jan. 4, 2017 | |||||||||||||||||||
Fair value of consideration | £ 31 | |||||||||||||||||||
Acquisition percentage | 100.00% | |||||||||||||||||||
Intangible assets | £ 28 | |||||||||||||||||||
Goodwill | £ 8 | |||||||||||||||||||
Ten Motives Limited | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Apr. 20, 2016 | |||||||||||||||||||
Fair value of consideration | £ 56 | |||||||||||||||||||
Acquisition percentage | 100.00% | |||||||||||||||||||
Goodwill | £ 21 | |||||||||||||||||||
Intangible assets | £ 33 | |||||||||||||||||||
CHIC Group | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Dec. 30, 2015 | |||||||||||||||||||
Consideration paid | 1 | 13 | 6 | |||||||||||||||||
Fair value of consideration | £ 82 | |||||||||||||||||||
Acquisition percentage | 100.00% | |||||||||||||||||||
Contingent consideration payable | £ 30 | |||||||||||||||||||
Blue Nile Cigarette Company Limited | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Nov. 17, 2015 | |||||||||||||||||||
Consideration paid | £ 1 | £ 5 | £ 1 | |||||||||||||||||
Fair value of consideration | £ 45 | |||||||||||||||||||
Acquisition percentage | 100.00% | |||||||||||||||||||
Contingent consideration payable | £ 8 | |||||||||||||||||||
TDR | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Sep. 30, 2015 | |||||||||||||||||||
Consideration paid | £ 5 | |||||||||||||||||||
Fair value of consideration | € | € 550 | |||||||||||||||||||
IPRESS.d.o.o | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Acquisition percentage | 49.00% | |||||||||||||||||||
Souza Cruz S.A. | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Oct. 16, 2015 | |||||||||||||||||||
Acquisition percentage | 24.70% | |||||||||||||||||||
Ownership percentage after additional acquisition | 99.10% | |||||||||||||||||||
Consideration paid for additional interest acquired | £ 70 | £ 1,660 | ||||||||||||||||||
BAT Chile Operaciones, SA | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Acquisition percentage | 0.01% | 0.20% | ||||||||||||||||||
Ownership percentage after additional acquisition | 99.00% | |||||||||||||||||||
Consideration paid for additional interest acquired | £ 1 | |||||||||||||||||||
Twisp Propriety Limited | ||||||||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||||||||
Date of acquisition | Dec. 21, 2017 | |||||||||||||||||||
Acquisition percentage | 100.00% |
Share-based Payments - Addition
Share-based Payments - Additional Information (Details) | Jul. 25, 2017 | Dec. 31, 2018GBP (£)sharesyr | Dec. 31, 2018USD ($)sharesyr | Dec. 31, 2017GBP (£)sharesyr | Dec. 31, 2017USD ($)sharesyr | Dec. 31, 2016GBP (£)sharesyr | Dec. 31, 2010shares |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Share price volatility calculation period | five-year | five-year | |||||
Expected dividend yield calculation determination | The expected dividend yield was determined by calculating the yield from the last two declared dividends divided by the grant share price. | The expected dividend yield was determined by calculating the yield from the last two declared dividends divided by the grant share price. | |||||
Sharesave Scheme (SAYE) | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Discount percentage on market price | 20.00% | 20.00% | |||||
Number of options granted | 0 | ||||||
Maximum savings by participant to buy shares in any tax year | £ | £ 6,000 | ||||||
Sharesave Scheme (SAYE) | Bottom of Range | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Options exercisable period | 3 years | 3 years | |||||
Sharesave Scheme (SAYE) | Top of Range | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Options exercisable period | 5 years | 5 years | |||||
Share Reward Scheme (SRS) and International Share Reward Scheme (ISRS) | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Maximum amount of free shares that can be granted | £ | £ 3,600 | ||||||
Investment holding period | 3 years | 3 years | |||||
Partnership Share Scheme | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Maximum amount allocated to purchase shares | £ | £ 1,800 | ||||||
Period taken to transfer to participants tax free | 5 years | 5 years | |||||
Equity Settled Long Term Incentive Plan | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Number of options granted | 3,067,000 | 3,067,000 | 1,690,000 | 1,690,000 | |||
Number of options outstanding | 6,908,000 | 6,908,000 | 6,030,000 | 6,030,000 | 5,337,000 | ||
Number of share options exercisable | 676,000 | 676,000 | 653,000 | 653,000 | |||
Weighted average share price at date of exercise for share options exercised | £ | £ 38.90 | £ 51.95 | £ 45.80 | ||||
Weighted average remaining contractual life of outstanding shares | yr | 8.1 | 8.1 | 8.1 | 8.1 | 8.2 | ||
LTIP, Cash-settled | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Number of options granted | 66,000 | 66,000 | 152,000 | 152,000 | |||
Number of options outstanding | 306,000 | 306,000 | 378,000 | 378,000 | 407,000 | ||
Number of share options exercisable | 22,000 | 22,000 | 7,000 | 7,000 | |||
Weighted average share price at date of exercise for share options exercised | £ | £ 40.62 | £ 52.08 | £ 47 | ||||
Weighted average remaining contractual life of outstanding shares | yr | 8.1 | 8.1 | 8.3 | 8.3 | 7.9 | ||
DSBS, Equity-settled | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Number of options granted | 1,262,000 | 1,262,000 | 1,079,000 | 1,079,000 | |||
Number of options outstanding | 3,248,000 | 3,248,000 | 2,962,000 | 2,962,000 | 3,225,000 | ||
Number of share options exercisable | 79,000 | 79,000 | 61,000 | 61,000 | |||
Weighted average share price at date of exercise for share options exercised | £ | £ 40 | £ 52.52 | £ 42.26 | ||||
Weighted average remaining contractual life of outstanding shares | yr | 1.3 | 1.3 | 1.3 | 1.3 | 1.3 | ||
DSBS, Cash-settled | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Number of options granted | 66,000 | 66,000 | 136,000 | 136,000 | |||
Number of options outstanding | 281,000 | 281,000 | 382,000 | 382,000 | 423,000 | ||
Number of share options exercisable | 5,000 | 5,000 | 5,000 | 5,000 | |||
Weighted average share price at date of exercise for share options exercised | £ | £ 40.51 | £ 52.50 | £ 41.97 | ||||
Weighted average remaining contractual life of outstanding shares | yr | 1.1 | 1.1 | 1.2 | 1.2 | 1.2 | ||
Reynolds American Inc. | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Number of options outstanding | 1,208,129 | 1,208,129 | |||||
Number of share options exercisable | 72,033 | 72,033 | |||||
Weighted average share price at date of exercise for share options exercised | $ | $ 51.43 | $ 62.67 | |||||
Reynolds American Inc. | Equity Settled Long Term Incentive Plan | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Weighted average remaining contractual life of outstanding shares | yr | 1.91 | 1.91 | 2.17 | 2.17 | |||
Long Term Incentive Plan | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Nil-cost options exercisable - contractual life in years | yr | 10 | 10 | |||||
Options exercisable period | 3 years | 3 years | |||||
Long Term Incentive Plan | Earnings Per Share | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Percentage of grant | 40.00% | 40.00% | 40.00% | 40.00% | 40.00% | ||
Long Term Incentive Plan | Operating Cash Flow | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Percentage of grant | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | ||
Long Term Incentive Plan | Total Shareholder Return | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Percentage of grant | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | ||
Long Term Incentive Plan | Net Turnover | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Percentage of grant | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | ||
Long Term Incentive Plan | Reynolds American Inc. | |||||||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||||||
Percentage of grant | 150.00% | 150.00% | |||||
Date of acquisition | Jul. 25, 2017 |
Share-based Payments - Summary
Share-based Payments - Summary of Share-based Payment Expense (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | £ 123 | £ 117 | £ 84 |
LTIP, Cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | 3 | 6 | |
DSBS, Cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | 2 | 9 | 7 |
Cash-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | 2 | 12 | 13 |
Equity Settled Long Term Incentive Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | 70 | 56 | 25 |
DSBS, Equity-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | 44 | 42 | 40 |
Other schemes, Equity-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | 7 | 7 | 6 |
Equity-settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based payments – equity and cash-settled (note 25) | £ 121 | £ 105 | £ 71 |
Share-based Payments - Summar_2
Share-based Payments - Summary of Share-based Payment Liability (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
LTIP, Vested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | £ 0.5 | £ 0.3 |
DSBS, Vested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 0.2 | 0.3 |
Vested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 0.7 | 0.6 |
LTIP, Unvested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 2.6 | 9.1 |
LTIP, Unvested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | 6.1 | 11.6 |
Unvested | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Total liability | £ 8.7 | £ 20.7 |
Share-based Payments - Summar_3
Share-based Payments - Summary of Movements for Equity and Cash-Settled LTIP Scheme (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Settled Long Term Incentive Plan | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year | 6,030,000 | 5,337,000 |
Number of options granted | 3,067,000 | 1,690,000 |
Number of options, Acquired from RAI | 904,000 | |
Number of options, Exercised during the period | (1,739,000) | (746,000) |
Number of options, Forfeited during the period | (450,000) | (1,155,000) |
Number of options, Outstanding at end of year | 6,908,000 | 6,030,000 |
Number of options, Exercisable at end of year | 676,000 | 653,000 |
LTIP, Cash-settled | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year | 378,000 | 407,000 |
Number of options granted | 66,000 | 152,000 |
Number of options, Exercised during the period | (102,000) | (65,000) |
Number of options, Forfeited during the period | (36,000) | (116,000) |
Number of options, Outstanding at end of year | 306,000 | 378,000 |
Number of options, Exercisable at end of year | 22,000 | 7,000 |
Share-based Payments - Summar_4
Share-based Payments - Summary of Movements for Equity and Cash-Settled DSBS Scheme (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DSBS, Equity-settled | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year | 2,962 | 3,225 |
Number of options granted | 1,262 | 1,079 |
Number of options, Exercised during the period | (940) | (1,267) |
Number of options, Forfeited during the period | (36) | (75) |
Number of options, Outstanding at end of year | 3,248 | 2,962 |
Number of options, Exercisable at end of year | 79 | 61 |
DSBS, Cash-settled | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Number of options, Outstanding at start of year | 382 | 423 |
Number of options granted | 66 | 136 |
Number of options, Exercised during the period | (145) | (165) |
Number of options, Forfeited during the period | (22) | (12) |
Number of options, Outstanding at end of year | 281 | 382 |
Number of options, Exercisable at end of year | 5 | 5 |
Share-based Payments - Valuatio
Share-based Payments - Valuation Assumptions (Details) - GBP (£) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Long Term Incentive Plan | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Expected volatility (%) | 18.00% | 18.00% |
Average expected term to exercise (years) | 3 years 6 months | 3 years 6 months |
Risk-free rate (%) | 1.00% | 0.30% |
Expected dividend yield (%) | 5.00% | 3.20% |
Share price at date of grant (£) | £ 38.94 | £ 52.11 |
Fair value at grant date (£) | £ 29.39 | £ 41.04 |
Deferred Share Bonus Scheme | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Expected volatility (%) | 18.00% | 18.00% |
Average expected term to exercise (years) | 3 years | 3 years |
Risk-free rate (%) | 1.00% | 0.30% |
Expected dividend yield (%) | 5.00% | 3.20% |
Share price at date of grant (£) | £ 38.94 | £ 52.11 |
Fair value at grant date (£) | £ 33.50 | £ 47.27 |
Share-based Payments - Summar_5
Share-based Payments - Summary of Valuation Assumptions Used in Models (Details) - Long Term Incentive Plan | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Average share price volatility FMCG comparator group (%) | 18.00% | 19.00% |
Average correlation FMCG comparator group (%) | 31.00% | 31.00% |
Group Employees - Additional In
Group Employees - Additional Information (Details) - Employee | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number And Average Number Of Employees [Abstract] | ||
Average number of employees | 95,239 | 91,402 |
Group Employees - Summary of Av
Group Employees - Summary of Average Number of Persons Employed by Group and Associates (Details) - Employee | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 95,239 | 91,402 |
Associates | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 29,646 | 30,809 |
Subsidiaries | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 65,593 | 60,593 |
Subsidiaries | APME | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 15,074 | 14,075 |
Subsidiaries | AMSSA | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 19,351 | 19,158 |
Subsidiaries | ENA | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 26,102 | 25,192 |
Subsidiaries | United States | ||
Number and Average Number of Employees [Line Items] | ||
Average number of employees | 5,066 | 2,168 |
Related Party Disclosures - Add
Related Party Disclosures - Additional information (Details) $ in Millions | Sep. 22, 2016USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) |
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Consideration paid for additional interest acquired | £ 11,000,000 | £ 70,000,000 | |||
Proceeds from share buy-back programme by RAI | 23,000,000 | ||||
Pension Schemes | United Kingdom | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Maximum charge to secure total contributions payable over the Group's Head Office | £ 150,000,000 | ||||
British American Tobacco Myanmar Limited | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Acquisition percentage | 44.00% | ||||
IPRESS.d.o.o | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Acquisition percentage | 49.00% | ||||
British American Tobacco Vranje | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Acquisition percentage | 11.00% | ||||
British American Tobacco Chile Operaciones S A | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Acquisition percentage | 0.01% | ||||
British American Tobacco Chile Operaciones S A and IPRESS d.o.o. | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Consideration paid for additional interest acquired | £ 1,000,000 | ||||
Associates | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Share of dividends from associates in respect of dividends | £ 211,000,000 | 688,000,000 | 1,024,000,000 | ||
Associates | Dividends Receivable | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Amounts receivable from associates in respect of dividends | £ 0 | £ 0 | 221,000,000 | ||
R.J. Reynolds Tobacco Company | 2010 Agreement | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Agreement termination date | Dec. 31, 2014 | ||||
Agreement notice period | three years | ||||
Early termination compensation recognized | $ | $ 90 | ||||
Early termination compensation paid | $ | $ 7 | ||||
RAI | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Proceeds from share buy-back programme by RAI | £ 23,000,000 | ||||
Subsidiaries | Souza Cruz | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Acquisition percentage | 1.00% | ||||
Consideration paid for additional interest acquired | £ 70,000,000 | ||||
Increase in reserves attributable to the owners of the parent | 4,000,000 | ||||
Decrease in reserves attributable to non-controlling interests | £ 4,000,000 |
Related Party Disclosures - Sum
Related Party Disclosures - Summary of Transactions Between Related Parties (Details) - Related Parties - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transactions | |||
– revenue | £ 473 | £ 366 | £ 370 |
– purchases | (101) | (218) | (298) |
– other net income | 216 | 699 | 1,023 |
Amounts receivable at 31 December | 26 | 40 | 270 |
Amounts payable at 31 December | £ (1) | £ (1) | £ (2) |
Related Party Disclosures - S_2
Related Party Disclosures - Summary of Amounts Incurred by Entity for Provision of Key Management Personnel Services (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Amounts Incurred By Entity For Provision Of Key Management Personnel Services Provided By Separate Management Entities [Line Items] | |||
Key management personnel compensation salaries and other short-term employee benefits | £ 21 | £ 24 | £ 18 |
Key management personnel compensation post-employment benefits | 4 | 5 | 3 |
Key management personnel compensation share-based payments | 18 | 16 | 12 |
Key management personnel compensation - total | 43 | 45 | 33 |
Salary; fees; benefits; incentives | |||
– salary | 2,211 | 2,122 | 2,057 |
– fees | 1,772 | 1,702 | 1,696 |
– taxable benefits | 846 | 709 | 563 |
– short-term incentives | 5,031 | 4,689 | 4,622 |
– long-term incentives | 5,300 | 10,192 | 4,483 |
Sub-total | 15,160 | 19,414 | 13,421 |
Pension; other emoluments | |||
– pension | 921 | 612 | 634 |
– other emoluments | 50 | 50 | 44 |
Sub-total | 971 | 662 | 678 |
Total emoluments | 16,131 | 20,076 | 14,099 |
Executive Directors [Member] | |||
Salary; fees; benefits; incentives | |||
– salary | 2,211 | 2,122 | 2,057 |
– taxable benefits | 427 | 385 | 335 |
– short-term incentives | 5,031 | 4,689 | 4,622 |
– long-term incentives | 5,300 | 10,192 | 4,483 |
Sub-total | 12,969 | 17,388 | 11,497 |
Pension; other emoluments | |||
– pension | 921 | 612 | 634 |
– other emoluments | 50 | 50 | 44 |
Sub-total | 971 | 662 | 678 |
Total emoluments | 13,940 | 18,050 | 12,175 |
Chairman [Member] | |||
Salary; fees; benefits; incentives | |||
– fees | 680 | 660 | 645 |
– taxable benefits | 116 | 129 | 106 |
Sub-total | 796 | 789 | 751 |
Pension; other emoluments | |||
Total emoluments | 796 | 789 | 751 |
Non-Executive Directors [Member] | |||
Salary; fees; benefits; incentives | |||
– fees | 1,092 | 1,042 | 1,051 |
– taxable benefits | 303 | 195 | 122 |
Sub-total | 1,395 | 1,237 | 1,173 |
Pension; other emoluments | |||
Total emoluments | £ 1,395 | £ 1,237 | £ 1,173 |
Related Party Disclosures - S_3
Related Party Disclosures - Summary of Aggregate Gains on LTIP Shares Exercised (Details) - Long Term Incentive Plan | 12 Months Ended |
Dec. 31, 2018GBP (£)shares | |
Nicandro Durante | |
Disclosure Of Transactions Between Related Parties [Line Items] | |
Award Date | Mar. 27, 2015 |
Exercised, shares | shares | 122,477 |
Exercise date | Mar. 27, 2018 |
Price per share | £ 39.46 |
Aggregate gain | £ 4,832,942 |
Shares | shares | 127,448 |
Price per share | £ 36.25 |
Face Value | £ 4,619,990 |
Ben Stevens | |
Disclosure Of Transactions Between Related Parties [Line Items] | |
Award Date | Mar. 27, 2015 |
Exercised, shares | shares | 66,925 |
Exercise date | Mar. 27, 2018 |
Price per share | £ 39.46 |
Aggregate gain | £ 2,640,861 |
Shares | shares | 69,641 |
Price per share | £ 36.25 |
Face Value | £ 2,524,486 |
Related Party Disclosures - S_4
Related Party Disclosures - Summary of Aggregate Gains on LTIP Shares Exercised (Parenthetical) (Details) - Long Term Incentive Plan | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Nicandro Durante | |
Disclosure Of Transactions Between Related Parties [Line Items] | |
Cost of options | £ 0 |
Ben Stevens | |
Disclosure Of Transactions Between Related Parties [Line Items] | |
Cost of options | £ 0 |
Contingent Liabilities and Fi_3
Contingent Liabilities and Financial Commitments - General Litigation Overview - Additional Information (Details) $ in Billions | 1 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Dec. 31, 2006Class | Dec. 31, 2018GBP (£)CasePlaintiffClaimJudgment | Dec. 31, 2018USD ($)CasePlaintiffClaimJudgment | Dec. 31, 2018EUR (€)CasePlaintiffClaimJudgment | Dec. 31, 2018CAD ($)CasePlaintiffClaimJudgment | Dec. 31, 2018BRL (R$)CasePlaintiffClaimJudgment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018GBP (£)Judgment | Dec. 31, 2018USD ($) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of active individual cases | 111 | 111 | 111 | 111 | 111 | |||||
Number of cases awarded damages | 5 | 5 | 5 | 5 | 5 | |||||
Settlement expenses | £ 164,400,000 | $ 209,400,000 | ||||||||
Amount of punitive damages | £ 114,000,000,000 | $ 145,000,000,000 | ||||||||
Number of Engle class representatives for which judgments allowed to stand | Class | 2 | |||||||||
Number of judgments returned in plaintiff favor | Judgment | 2 | 2 | 2 | 2 | 2 | 46 | ||||
Payment related to fund research on diseases | £ 175,000,000 | £ 175,000,000 | $ 223,000,000 | |||||||
Settlement expenses | $ | $ 2,741,000,000 | $ 2,856,000,000 | $ 2,727,000,000 | |||||||
Number of active case | 1 | 1 | 1 | 1 | 1 | |||||
Number of cases Filed during year | 107 | 107 | 107 | 107 | 107 | |||||
BRAZIL | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Settlement expenses | £ 129,149 | $ 164,484 | R$ 637500 | |||||||
Number of cases filed | 56 | 56 | 56 | 56 | 56 | |||||
Canada | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 5 | 5 | 5 | 5 | 5 | |||||
ITALY | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Settlement expenses | £ 709,054 | $ 903,051 | € 789,970 | |||||||
Number of cases filed | 25 | 25 | 25 | 25 | 25 | |||||
CHILE | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 10 | 10 | 10 | 10 | 10 | |||||
ARGENTINA | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 5 | 5 | 5 | 5 | 5 | |||||
IRELAND | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 2 | 2 | 2 | 2 | 2 | |||||
West Virginia I P I C | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 1,200 | 1,200 | 1,200 | 1,200 | 1,200 | |||||
Number plaintiffs qualified for claim | Plaintiff | 30 | 30 | 30 | 30 | 30 | |||||
Amount received on dismissal of claims | £ 5,496,000,000 | $ 7,000,000,000 | ||||||||
Number of plaintiffs sought for damages | Plaintiff | 41 | 41 | 41 | 41 | 41 | |||||
Number of claims with prejudice dismissed | Claim | 41 | 41 | 41 | 41 | 41 | |||||
RJRT | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Amount of punitive damages | £ 28,500,000,000 | $ 36,300,000,000 | ||||||||
B&W | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Amount of punitive damages | £ 13,800,000,000 | $ 17,600,000,000 | ||||||||
Lorillard Tobacco | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 137 | 137 | 137 | 137 | 137 | |||||
Amount of punitive damages | £ 12,800,000,000 | $ 16,300,000,000 | ||||||||
Payments related to settlements to resolve filter cases | 23,700,000 | 23,700,000 | 30,200,000 | |||||||
Engle Defendants | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Settlement expenses | 268,300,000 | 341,700,000 | ||||||||
Broin V Philip Morris Inc | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Payment related to fund research on diseases | 236,000,000 | £ 236,000,000 | $ 300,000,000 | |||||||
Plaintiffs’ counsel's fees and expenses | 38,500,000 | 49,000,000 | ||||||||
Group Companies Litigation | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Provisions Under State Settlement Agreements | £ 4,100,000,000 | $ 5,200,000,000 | ||||||||
Initial number of cases | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | |||||
Number of cases after reduction | 400 | 400 | 400 | 400 | 400 | |||||
State Settlement Agreements | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Settlement expenses | £ 2,152,000,000 | $ 2,741,000,000 | ||||||||
Settlement cash payments | 720,000,000 | 917,000,000 | ||||||||
Two Quebec Class Actions | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Settlement expenses | £ 8,900,000,000 | $ 11,400,000,000 | $ 15.6 | |||||||
Two Quebec Class Actions | BRAZIL | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 1 | 1 | 1 | 1 | 1 | |||||
Two Quebec Class Actions | Venezuela | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 1 | 1 | 1 | 1 | 1 | |||||
Two Quebec Class Actions | Canada | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Number of cases filed | 11 | 11 | 11 | 11 | 11 | |||||
Two Quebec Class Actions | Parent Company | ||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||
Settlement expenses | £ 5,900,000,000 | $ 7,600,000,000 | $ 10.4 |
Contingent Liabilities and Fi_4
Contingent Liabilities and Financial Commitments - General Litigation Overview - Schedule of Categories of Tobacco Related Actions Pending Against Group companies (Details) - Case | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Individual Smoking and Health Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Change in Number Increase/(Decrease) | 12 | |
West Virginia I P I C | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Change in Number Increase/(Decrease) | (563) | |
Engle Progeny Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Change in Number Increase/(Decrease) | (301) | |
Filter Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Change in Number Increase/(Decrease) | (13) | |
US Tobacco Related Actions | Medical Reimbursement Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 2 | 2 |
Change in Number Increase/(Decrease) | 0 | |
US Tobacco Related Actions | Class Actions | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 20 | 24 |
Change in Number Increase/(Decrease) | (4) | |
US Tobacco Related Actions | Individual Smoking and Health Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 111 | 99 |
Change in Number Increase/(Decrease) | 12 | |
US Tobacco Related Actions | West Virginia I P I C | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 1 | 1 |
Change in Number Increase/(Decrease) | 0 | |
US Tobacco Related Actions | Engle Progeny Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 2,268 | 2,569 |
Change in Number Increase/(Decrease) | (301) | |
US Tobacco Related Actions | Broin I I Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 1,406 | 2,321 |
Change in Number Increase/(Decrease) | (915) | |
US Tobacco Related Actions | Filter Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 58 | 71 |
Change in Number Increase/(Decrease) | (13) | |
US Tobacco Related Actions | State Settlement Agreements Enforcement And Validity | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 3 | 2 |
Change in Number Increase/(Decrease) | 1 | |
Non-US Tobacco Related Actions | Medical Reimbursement Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 19 | 19 |
Change in Number Increase/(Decrease) | 0 | |
Non-US Tobacco Related Actions | Class Actions | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 13 | 14 |
Change in Number Increase/(Decrease) | (1) | |
Non-US Tobacco Related Actions | Individual Smoking and Health Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Case Numbers as at 31 December 2018 | 107 | 120 |
Change in Number Increase/(Decrease) | (13) |
Contingent Liabilities and Fi_5
Contingent Liabilities and Financial Commitments - US Litigation - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||||
Dec. 31, 2018GBP (£)CaseClassAction | Dec. 31, 2018USD ($)CaseClassAction | Dec. 31, 2017Case | Dec. 31, 2018Case | Dec. 31, 2018Case | Dec. 31, 2017Case | Sep. 22, 1999GBP (£) | Sep. 22, 1999USD ($) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases affirmed in favour of plaintiffs | 15 | 15 | 12 | |||||
Number of cases resolved | 1 | |||||||
Industry claim for disgorgement | £ 220,000 | $ 280,000 | ||||||
Number of class action specified the amount of claim | ClassAction | 19 | 19 | ||||||
Class action alleged excess amount that plaintiffs seeking | £ 3,900,000 | $ 5,000,000 | ||||||
Class action alleged maximum amount that plaintiffs seeking | £ 59,000 | $ 75,000 | ||||||
Class Actions One | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of class action alleged that plaintiffs seeking in excess of US$5,000,000 | ClassAction | 18 | 18 | ||||||
Class Actions Two | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of class action alleged that plaintiffs seeking in excess of US$5,000,000 | ClassAction | 1 | 1 | ||||||
SFNTC [Member] | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of putative class actions filed | ClassAction | 17 | 17 | ||||||
Motion in part granted, date | Dec. 21, 2017 | Dec. 21, 2017 | ||||||
United States | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Category of case | 4 | 4 | ||||||
Number of cases tried | 117 | |||||||
Corrective communications through newspaper | 4 months | 4 months | ||||||
Corrective communications through television | 1 year | 1 year | ||||||
United States | Reynolds Defendants | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases, mistrials declared | 13 | |||||||
Total number of cases affirmed in favour of defendants | 29 | |||||||
Florida | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases, mistrials declared | 26 | |||||||
Number of cases dismissed | 47 | |||||||
Total number of cases affirmed in favour of plaintiffs | 50 | |||||||
Number of cases continued | 2 | |||||||
Number of cases dismissed during trial | 5 | |||||||
Number of punitive damage cases | 4 | |||||||
Florida | Reynolds Defendants | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases affirmed in favour of defendants | 27 | |||||||
Florida | Engle Progeny Cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases tried | 109 | 109 | ||||||
California | Reynolds Defendants | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases affirmed in favour of defendants | 1 | |||||||
New Jersey | Reynolds Defendants | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of cases affirmed in favour of defendants | 1 | |||||||
United States | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Total number of tobacco product liability case | 3,900 | 3,900 | 1 | |||||
United States | Engle Progeny Cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases scheduled for trial | 135 | 135 | 135 | 135 | ||||
United States | Reynolds Defendants | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases scheduled for trial | 34 | 34 | 34 | 34 | ||||
United States | Reynolds Defendants | Individual Smoking and Health Cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases scheduled for trial | 12 | 12 | 12 | 12 | ||||
United States | Reynolds Defendants | Filter Cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases scheduled for trial | 20 | 20 | 20 | 20 | ||||
United States | Reynolds Defendants | Other Non-smoking and Health Cases | ||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||
Number of cases scheduled for trial | 1 | 1 | 1 | 1 |
Contingent Liabilities and Fi_6
Contingent Liabilities and Financial Commitments - Engle Class Action and Engle Progeny Cases - Additional Information (Details) | Jan. 28, 2019GBP (£) | Jan. 28, 2019USD ($) | Mar. 26, 2018GBP (£) | Mar. 26, 2018USD ($) | Feb. 17, 2017 | Jan. 18, 2017GBP (£) | Jan. 18, 2017USD ($) | Jul. 31, 2000GBP (£) | Jul. 31, 2000USD ($) | Nov. 30, 1998CaseState | Dec. 31, 2018GBP (£)CasePlaintiff | Dec. 31, 2018USD ($)CasePlaintiff | Dec. 31, 2017Case | Dec. 31, 2015GBP (£)Case | Dec. 31, 2015USD ($)Case | Dec. 31, 2012GBP (£)State | Dec. 31, 2012USD ($)State | Dec. 31, 2018USD ($) |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Amount of punitive damages | £ 114,000,000,000 | $ 145,000,000,000 | ||||||||||||||||
Total number of cases | 111 | 111 | ||||||||||||||||
Amount paid for attorneys fees and statutory interest | £ 82,367,291 | $ 104,902,981.61 | ||||||||||||||||
Trust Fund | £ 5,000,000,000 | $ 5,200,000,000 | ||||||||||||||||
Number of states bot diligently enforced qualifying statuses | State | 6 | 6 | ||||||||||||||||
Events After Reporting Period | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
State settlement agreement | £ 98,000,000 | $ 125,000,000 | ||||||||||||||||
N P M Adjustment Settlement Agreement | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Number of states additionally joined | State | 10 | 10 | ||||||||||||||||
Bottom of Range | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Proceeds from credits | £ 863,000,000 | $ 1,100,000,000 | ||||||||||||||||
Phase II | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Amount of punitive damages | £ 114,000,000,000 | $ 145,000,000,000 | ||||||||||||||||
Loss Contingency Amount of Overall Damages comprising Compensatory Damages | 10,000,000 | 12,700,000 | ||||||||||||||||
Engle Progeny Cases | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Litigation settlement amount | £ 78,500,000 | $ 100,000,000 | ||||||||||||||||
Number of cases covered by settlement | 400 | 400 | ||||||||||||||||
Number of cases not covered by settlement | 12 | 12 | ||||||||||||||||
Number of cases not covered by settlement, filed by different lawyer | 2 | 2 | ||||||||||||||||
Total number of cases | 2,268 | 2,268 | 2,569 | |||||||||||||||
Number of plaintiffs | Plaintiff | 2,841 | 2,841 | ||||||||||||||||
Number of additional cases | 9 | 9 | ||||||||||||||||
Payment for compensatory and punitive damages | £ 261,000,000 | $ 333,000,000 | ||||||||||||||||
Engle Progeny Cases | Florida | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Number of cases tried | 109 | 109 | ||||||||||||||||
Total bond cap | £ 157,000,000 | $ 200,000,000 | ||||||||||||||||
R.J. Reynolds Tobacco Company | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
State settlement agreement | £ 31,400,000 | $ 40,000,000 | ||||||||||||||||
Future annual losses | £ 11,800,000 | $ 15,000,000 | ||||||||||||||||
Net operating profit penalty | 78,000,000 | 99,400,000 | ||||||||||||||||
Penalty due | £ | 0 | |||||||||||||||||
R.J. Reynolds Tobacco Company | Florida | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Net operating profit penalty | 65,600,000 | 83,500,000 | ||||||||||||||||
R.J. Reynolds Tobacco Company | Phase II | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Amount of punitive damages | 28,500,000,000 | 36,300,000,000 | ||||||||||||||||
R.J. Reynolds Tobacco Company | Engle Progeny Cases | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Litigation settlement amount | £ 33,300,000 | $ 42,500,000 | ||||||||||||||||
Brown and Williamson Holdings Inc | Phase II | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Amount of punitive damages | 13,800,000,000 | 17,600,000,000 | ||||||||||||||||
Lorillard Inc | Phase II | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Amount of punitive damages | £ 12,800,000,000 | $ 16,300,000,000 | ||||||||||||||||
PM USA | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Net operating profit penalty | 12,500,000 | 15,900,000 | ||||||||||||||||
PM USA | Engle Progeny Cases | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Litigation settlement amount | 33,300,000 | 42,500,000 | ||||||||||||||||
Lorillard Tobacco | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Amount of punitive damages | £ 12,800,000,000 | $ 16,300,000,000 | ||||||||||||||||
Lorillard Tobacco | Engle Progeny Cases | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Litigation settlement amount | £ 11,800,000 | $ 15,000,000 | ||||||||||||||||
R J Reynolds Tobacco Company Lorillard Tobacco And Brown And Williamson Holdings Inc | Master Settlement Agreement | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
Number of states representing Master Settlement Agreement | State | 46 | |||||||||||||||||
Number of previously settled cases brought forward | 4 | |||||||||||||||||
ITG | ||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||
State settlement agreement | £ 35,300,000 | $ 45,000,000 | ||||||||||||||||
Future annual losses | £ 23,600,000 | $ 30,000,000 | ||||||||||||||||
Lawsuit filing date | Feb. 17, 2017 |
Contingent Liabilities and Fi_7
Contingent Liabilities and Financial Commitments - Summary of Engle Progeny Cases (Details) £ in Billions | 12 Months Ended | 24 Months Ended | 36 Months Ended | |
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)TrialAdverseJudgement | Dec. 31, 2017USD ($)TrialAdverseJudgement | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Amount of punitive damages | £ 114 | $ 145,000,000,000 | ||
Number of adverse judgments appealed by RJRT | 45 | |||
Number of adverse judgments in which no appeal was, and can no longer be, sought | 5 | |||
Engle Progeny Cases | ||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Total number of trials | Trial | 109 | 109 | ||
Number of trials resulting in plaintiffs’ verdicts | Trial | 46 | 46 | ||
Subsidiaries | ||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Number of adverse judgments appealed by RJRT | 45 | |||
Subsidiaries | Engle Progeny Cases | ||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Total damages awarded in final judgments against RJRT | $ | $ 341,698,989 | $ 336,757,755 | ||
Loss Contingency Amount of Overall Damages comprising Compensatory Damages | $ | 159,145,914 | 159,170,680 | ||
Amount of punitive damages | $ | $ 182,553,075 | $ 177,587,075 | ||
Number of adverse judgments appealed by RJRT | 38 | 39 | ||
Number of adverse judgments (not yet appealed), in which RJRT still has time to file an appeal | 3 | 3 | ||
Number of adverse judgments in which no appeal was, and can no longer be, sought | 5 |
Contingent Liabilities and Fi_8
Contingent Liabilities and Financial Commitments - Summary of Engle Progeny Cases (Parenthetical) (Details) - Case | 12 Months Ended | 24 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Disclosure Of Commitments And Contingencies [Abstract] | ||
Total number of cases remain undecided | 20 | 20 |
Additional number of cases affirmed | 2 | 2 |
Number of cases decided or closed | 21 | 14 |
Number of cases reversed for reinstatement | 1 | 1 |
Total number of cases affirmed in favour of plaintiffs | 15 | 12 |
Number of pending to review | 3 | |
Number of cases reversed for new trial | 1 | 1 |
Number of cases subsequently dismissed | 2 | 1 |
Contingent Liabilities and Fi_9
Contingent Liabilities and Financial Commitments - Summary of Individual Cases (Details) - Case | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 111 | |
Individual Smoking and Health Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 111 | 99 |
Change in Number Increase/(Decrease) | 12 | |
West Virginia I P I C | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 1 | 1 |
Change in Number Increase/(Decrease) | (563) | |
Number of plaintiffs | 1 | 564 |
Change in Number Increase / (Decrease) | (563) | |
Engle Progeny Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 2,268 | 2,569 |
Change in Number Increase/(Decrease) | (301) | |
Number of plaintiffs | 2,841 | 3,276 |
Change in Number Increase / (Decrease) | (435) | |
Broin | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 1,406 | 2,321 |
Change in Number Increase/(Decrease) | (915) | |
Filter Cases | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Total number of cases | 58 | 71 |
Change in Number Increase/(Decrease) | (13) |
Contingent Liabilities and F_10
Contingent Liabilities and Financial Commitments - Summary of Individual Cases (Parenthetical) (Details) | Jan. 01, 1999GBP (£)Plaintiff | Dec. 31, 2018Case | Oct. 31, 1997GBP (£)Instalment | Oct. 31, 1997USD ($)Instalment | Dec. 31, 2018GBP (£)Case | Dec. 31, 2018USD ($)Case | Dec. 31, 2017Plaintiff | Dec. 31, 2007USD ($)Plaintiff | Dec. 31, 2017Case |
Individual Smoking and Health Cases | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Net amount against verdicts | £ 164,400,000 | $ 209,400,000 | |||||||
West Virginia I P I C | West Virginia | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Number of cases | Plaintiff | 1,200 | ||||||||
Number of plaintiffs qualified to pursue narrow claim | Plaintiff | 30 | ||||||||
Litigation settlement amount per case | £ 5,496 | $ 7,000 | |||||||
Number of plaintiffs sought for damages | Plaintiff | 41 | ||||||||
Broin V Philip Morris Inc | Florida | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Litigation settlement amount | £ 236,000,000 | $ 300,000,000 | |||||||
Number of annual installment for payment | Instalment | 3 | 3 | |||||||
Litigation settlement, annual installment amount | £ 79,000,000 | $ 100,000,000 | |||||||
Number of plaintiffs sought for damages | 38,500,000 | 49,000,000 | |||||||
Total number of trials | Case | 0 | ||||||||
Broin V Philip Morris Inc | Florida | R.J. Reynolds Tobacco Company | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Loss contingency, right to re-file plaintiffs, period | 68,000,000 | 86,000,000 | |||||||
Broin V Philip Morris Inc | Florida | Lorillard Tobacco | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Loss contingency, right to re-file plaintiffs, period | 45,000,000 | 57,000,000 | |||||||
Broin V Philip Morris Inc | Florida | Brown and Williamson Holdings Inc | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Loss contingency, right to re-file plaintiffs, period | £ 24,300,000 | $ 31,000,000 | |||||||
Filter Cases | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Litigation settlement amount | £ 24,000,000 | $ 30,200,000 | |||||||
Number of cases for which damages paid to plaintiffs | Case | 137 | 137 | |||||||
Filter Cases | Lorillard Tobacco | |||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||
Number of cases | Case | 58 |
Contingent Liabilities and F_11
Contingent Liabilities and Financial Commitments - Operating Subsidiaries' Expenses and Payments under State Settlement Agreements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Commitments And Contingencies [Line Items] | |||
Settlement expenses | $ 2,741,000,000 | $ 2,856,000,000 | $ 2,727,000,000 |
Settlement cash payments | 917,000,000 | $ 4,612,000,000 | $ 3,042,000,000 |
Bottom of Range | 2019 and Thereafter | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Projected settlement expenses | 2,800,000,000 | ||
Projected settlement cash payments | $ 2,800,000,000 |
Contingent Liabilities and F_12
Contingent Liabilities and Financial Commitments - Tobacco Related Litigation Outside the United States - Additional Information (Details) - 1 months ended Dec. 31, 2018 | GBP (£)ClaimMarket | USD ($)ClaimMarket | EUR (€)ClaimMarket |
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | € | 107 | ||
Number of claims received unfavourable verdicts | € | 2 | ||
Total value of unfavourable verdicts | £ 719,819 | $ 916,750 | € 801,954 |
Outside US | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of markets outside US | Market | 14 | 14 | 14 |
BRAZIL | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 56 | 56 | 56 |
ITALY | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 25 | 25 | 25 |
CHILE | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 10 | 10 | 10 |
Canada | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 5 | 5 | 5 |
ARGENTINA | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 5 | 5 | 5 |
IRELAND | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 2 | 2 | 2 |
Four Jurisdictions | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Number of personal injury claims | 1 | 1 | 1 |
Contingent Liabilities and F_13
Contingent Liabilities and Financial Commitments - Product Liability Outside the United States - Additional Information (Details) £ in Millions, Kz in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2016USD ($) | Nov. 30, 2016AOA (Kz) | Dec. 31, 2018GBP (£) | |
Disclosure Of Commitments And Contingencies [Line Items] | |||
Lawsuit seek damage amount | $ 2.6 | Kz 800,000,000 | £ 2 |
Angola | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Lawsuit filing date | 2016-11 | ||
Filing of response to claim | Dec. 5, 2016 | ||
BRAZIL | Souza Cruz S.A. | |||
Disclosure Of Commitments And Contingencies [Line Items] | |||
Lawsuit filing date | 2007-08 | ||
Case dismissed date | Oct. 4, 2011 |
Contingent Liabilities and F_14
Contingent Liabilities and Financial Commitments - Summary of Current Status of Litigation Cases (Details) £ in Millions, $ in Millions, $ in Millions | Jan. 31, 2019GBP (£) | Jan. 31, 2019USD ($) | Jan. 31, 2019CAD ($) | Jun. 15, 2018GBP (£) | Jun. 15, 2018USD ($) | Jun. 15, 2018CAD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) |
British Columbia | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Damages and Health Care Costs Recovery Act 2000 | Tobacco Damages and Health Care Costs Recovery Act 2000 | Tobacco Damages and Health Care Costs Recovery Act 2000 | ||||||
Companies named as Defendants | Imperial Investments Industries Carreras Rothmans Limited RJR Companies Other former Rothmans Group companies All have been served. | Imperial Investments Industries Carreras Rothmans Limited RJR Companies Other former Rothmans Group companies All have been served. | Imperial Investments Industries Carreras Rothmans Limited RJR Companies Other former Rothmans Group companies All have been served. | ||||||
Current stage | The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed, and document production and discoveries are ongoing. On 13 February 2017 the province delivered an expert report dated October 2016, quantifying its damages in the amount of CAD$118 billion (approximately £68 billion or US$ 86.3 billion). No trial date has been set. The federal government is seeking CAD$5 million (approximately £2.9 million or US$3.7 million) jointly from all the defendants in respect of costs pertaining to the third-party claim, now dismissed. | The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed, and document production and discoveries are ongoing. On 13 February 2017 the province delivered an expert report dated October 2016, quantifying its damages in the amount of CAD$118 billion (approximately £68 billion or US$ 86.3 billion). No trial date has been set. The federal government is seeking CAD$5 million (approximately £2.9 million or US$3.7 million) jointly from all the defendants in respect of costs pertaining to the third-party claim, now dismissed. | The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed, and document production and discoveries are ongoing. On 13 February 2017 the province delivered an expert report dated October 2016, quantifying its damages in the amount of CAD$118 billion (approximately £68 billion or US$ 86.3 billion). No trial date has been set. The federal government is seeking CAD$5 million (approximately £2.9 million or US$3.7 million) jointly from all the defendants in respect of costs pertaining to the third-party claim, now dismissed. | ||||||
Damages sought by the provincial government | £ 68,000 | $ 86,300 | $ 118,000 | ||||||
Damages sought by the federal government | £ 2.9 | $ 3.7 | $ 5 | ||||||
New Brunswick | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Damages and Health Care Costs Recovery Act 2006 | Tobacco Damages and Health Care Costs Recovery Act 2006 | Tobacco Damages and Health Care Costs Recovery Act 2006 | ||||||
Companies named as Defendants | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | ||||||
Current stage | The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production and discoveries are substantially complete. The most recent expert report filed by the Province estimates a range of damages between CAD$11.1 billion (approximately £6.4 billion or US$8.1 billion) - CAD$23.2 billion (approximately £13.4 billion or US$17 billion), including expected future costs. Following a motion to set a trial date, the court ordered that the trial commence on 4 November 2019. | The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production and discoveries are substantially complete. The most recent expert report filed by the Province estimates a range of damages between CAD$11.1 billion (approximately £6.4 billion or US$8.1 billion) - CAD$23.2 billion (approximately £13.4 billion or US$17 billion), including expected future costs. Following a motion to set a trial date, the court ordered that the trial commence on 4 November 2019. | The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production and discoveries are substantially complete. The most recent expert report filed by the Province estimates a range of damages between CAD$11.1 billion (approximately £6.4 billion or US$8.1 billion) - CAD$23.2 billion (approximately £13.4 billion or US$17 billion), including expected future costs. Following a motion to set a trial date, the court ordered that the trial commence on 4 November 2019. | ||||||
New Brunswick | Bottom of Range | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Damages sought by the provincial government | £ 6,400 | $ 8,100 | $ 11,100 | ||||||
New Brunswick | Top of Range | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Damages sought by the provincial government | £ 13,400 | $ 17,000 | $ 23,200 | ||||||
Ontario | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Damages and Health Care Costs Recovery Act 2009 | Tobacco Damages and Health Care Costs Recovery Act 2009 | Tobacco Damages and Health Care Costs Recovery Act 2009 | ||||||
Companies named as Defendants | Imperial the UK Companies and RJR Companies have all been named as defendants and served. | Imperial the UK Companies and RJR Companies have all been named as defendants and served. | Imperial the UK Companies and RJR Companies have all been named as defendants and served. | ||||||
Current stage | The defences of Imperial, the UK Companies and the RJR Companies have been filed. The parties completed significant document production in summer of 2017 and discoveries commenced in the fall of 2018. On 15 June 2018, the province delivered an expert report quantifying its damages in the range of CAD$280 billion (approximately £161 billion or US$205 billion) – CAD$630 billion (approximately £362 billion or US$ 461 billion) in 2016/2017 dollars for the period 1954 – 2060, and the Province has amended the damages sought in its Statement of Claim to CAD$330 billion (approximately £190 billion or US$242 billion). On 31 January 2019, the Province delivered a further expert report claiming an additional CAD $9.4 billion (approximately £5.4 billion or US$6.9 billion) -10.9 billion in damages (approximately £6.3 billion or US$7.9 billion) in respect of environmental tobacco smoke. No trial date has been set. | The defences of Imperial, the UK Companies and the RJR Companies have been filed. The parties completed significant document production in summer of 2017 and discoveries commenced in the fall of 2018. On 15 June 2018, the province delivered an expert report quantifying its damages in the range of CAD$280 billion (approximately £161 billion or US$205 billion) – CAD$630 billion (approximately £362 billion or US$ 461 billion) in 2016/2017 dollars for the period 1954 – 2060, and the Province has amended the damages sought in its Statement of Claim to CAD$330 billion (approximately £190 billion or US$242 billion). On 31 January 2019, the Province delivered a further expert report claiming an additional CAD $9.4 billion (approximately £5.4 billion or US$6.9 billion) -10.9 billion in damages (approximately £6.3 billion or US$7.9 billion) in respect of environmental tobacco smoke. No trial date has been set. | The defences of Imperial, the UK Companies and the RJR Companies have been filed. The parties completed significant document production in summer of 2017 and discoveries commenced in the fall of 2018. On 15 June 2018, the province delivered an expert report quantifying its damages in the range of CAD$280 billion (approximately £161 billion or US$205 billion) – CAD$630 billion (approximately £362 billion or US$ 461 billion) in 2016/2017 dollars for the period 1954 – 2060, and the Province has amended the damages sought in its Statement of Claim to CAD$330 billion (approximately £190 billion or US$242 billion). On 31 January 2019, the Province delivered a further expert report claiming an additional CAD $9.4 billion (approximately £5.4 billion or US$6.9 billion) -10.9 billion in damages (approximately £6.3 billion or US$7.9 billion) in respect of environmental tobacco smoke. No trial date has been set. | ||||||
Damages sought by the provincial government | £ 190 | $ 242 | $ 330 | ||||||
Ontario | Bottom of Range | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Damages sought by the provincial government | £ 161,000 | $ 205,000 | $ 280,000 | ||||||
Ontario | Top of Range | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Damages sought by the provincial government | £ 362,000 | $ 461,000 | $ 630,000 | ||||||
Ontario | Loss Contingency | Bottom of Range | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Damages sought by the provincial government, additional claim | £ 5,400 | $ 6,900 | $ 9,400 | ||||||
Ontario | Loss Contingency | Top of Range | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Damages sought by the provincial government, additional claim | £ 6,300 | $ 7,900 | $ 10,900 | ||||||
Newfoundland and Labrador | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Health Care Costs Recovery Act 2001 | Tobacco Health Care Costs Recovery Act 2001 | Tobacco Health Care Costs Recovery Act 2001 | ||||||
Companies named as Defendants | Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. | ||||||
Current stage | The case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province began its document production in March 2018. Damages have not been quantified by the province. No trial date has been set. | The case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province began its document production in March 2018. Damages have not been quantified by the province. No trial date has been set. | The case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province began its document production in March 2018. Damages have not been quantified by the province. No trial date has been set. | ||||||
Saskatchewan | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Damages and Health Care Costs Recovery Act 2007 | Tobacco Damages and Health Care Costs Recovery Act 2007 | Tobacco Damages and Health Care Costs Recovery Act 2007 | ||||||
Companies named as Defendants | Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. | ||||||
Current stage | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province has delivered a test shipment of documents. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province has delivered a test shipment of documents. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the province has delivered a test shipment of documents. Damages have not been quantified by the province. No trial date has been set. | ||||||
Manitoba | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Damages Health Care Costs Recovery Act 2006 | Tobacco Damages Health Care Costs Recovery Act 2006 | Tobacco Damages Health Care Costs Recovery Act 2006 | ||||||
Companies named as Defendants | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | ||||||
Current stage | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. Damages have not been quantified by the province. No trial date has been set. | ||||||
Alberta | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Crown’s Right of Recovery Act 2009 | Crown’s Right of Recovery Act 2009 | Crown’s Right of Recovery Act 2009 | ||||||
Companies named as Defendants | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | ||||||
Current stage | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. The province has stated its claim to be worth CAD$10 billion (approximately £5.7 billion or US$7.3 billion). No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. The province has stated its claim to be worth CAD$10 billion (approximately £5.7 billion or US$7.3 billion). No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production is underway. The province has stated its claim to be worth CAD$10 billion (approximately £5.7 billion or US$7.3 billion). No trial date has been set. | ||||||
Damages sought by the provincial government | £ 5,700 | $ 7,300 | $ 10,000 | ||||||
Quebec | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Related Damages and Health Care Costs Recovery Act 2009 | Tobacco Related Damages and Health Care Costs Recovery Act 2009 | Tobacco Related Damages and Health Care Costs Recovery Act 2009 | ||||||
Companies named as Defendants | Imperial, Investments, Industries, the RJR Companies and Carreras Rothmans Limited have been named as defendants and served. | Imperial, Investments, Industries, the RJR Companies and Carreras Rothmans Limited have been named as defendants and served. | Imperial, Investments, Industries, the RJR Companies and Carreras Rothmans Limited have been named as defendants and served. | ||||||
Current stage | The case is at an early case management stage. The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed. Motions over admissibility of documents and damages discovery have been filed but not heard. The province is seeking CAD$60 billion (approximately £34.4 billion or US$44 billion). No trial date has been set. | The case is at an early case management stage. The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed. Motions over admissibility of documents and damages discovery have been filed but not heard. The province is seeking CAD$60 billion (approximately £34.4 billion or US$44 billion). No trial date has been set. | The case is at an early case management stage. The defences of Imperial, Investments, Industries, Carreras Rothmans Limited and the RJR Companies have been filed. Motions over admissibility of documents and damages discovery have been filed but not heard. The province is seeking CAD$60 billion (approximately £34.4 billion or US$44 billion). No trial date has been set. | ||||||
Damages sought by the provincial government | £ 34,400 | $ 44,000 | $ 60,000 | ||||||
Prince Edward Island | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Damages and Health Care Costs Recovery Act 2009 | Tobacco Damages and Health Care Costs Recovery Act 2009 | Tobacco Damages and Health Care Costs Recovery Act 2009 | ||||||
Companies named as Defendants | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | ||||||
Current stage | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the next step will be document production, which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the next step will be document production, which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed and the next step will be document production, which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set. | ||||||
Nova Scotia | |||||||||
Disclosure of Current Status of Litigation Cases [Line Items] | |||||||||
Act pursuant to which Claim was brought | Tobacco Health Care Costs Recovery Act 2005 | Tobacco Health Care Costs Recovery Act 2005 | Tobacco Health Care Costs Recovery Act 2005 | ||||||
Companies named as Defendants | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | Imperial, the UK Companies and RJR Companies have all been named as defendants and served. | ||||||
Current stage | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed. The province provided a test document production in March 2018. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed. The province provided a test document production in March 2018. Damages have not been quantified by the province. No trial date has been set. | This case is at an early case management stage. The defences of Imperial, the UK Companies and the RJR Companies have been filed. The province provided a test document production in March 2018. Damages have not been quantified by the province. No trial date has been set. |
Contingent Liabilities and F_15
Contingent Liabilities and Financial Commitments - Non-Tobacco Related Litigation - Additional Information (Details) $ / shares in Units, € in Millions, ¥ in Millions | Feb. 06, 2019GBP (£) | Feb. 06, 2019USD ($) | Jun. 22, 2018GBP (£) | Jun. 22, 2018USD ($) | Jun. 22, 2018JPY (¥) | Apr. 30, 2018GBP (£) | Apr. 30, 2018USD ($) | Apr. 30, 2018HRK (kn) | Mar. 29, 2018GBP (£) | Mar. 29, 2018USD ($) | Nov. 29, 2017CaseGroup$ / shares | Oct. 11, 2017 | Aug. 22, 2017GBP (£) | Aug. 22, 2017USD ($) | Aug. 22, 2017HRK (kn) | Feb. 10, 2017GBP (£) | Feb. 10, 2017USD ($) | Aug. 08, 2014GBP (£) | Aug. 08, 2014USD ($) | Jul. 15, 2014 | Jul. 31, 2016EUR (€) | Sep. 30, 2014GBP (£) | Sep. 30, 2014USD ($) | May 31, 2012 | Apr. 30, 2016GBP (£) | Apr. 30, 2016USD ($) | Apr. 30, 2016EUR (€) | Dec. 31, 2015GBP (£) | Dec. 31, 2015USD ($) | Mar. 31, 2018GBP (£) | Mar. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2014GBP (£) | Dec. 31, 2014USD ($) | Dec. 31, 2009GBP (£) | Dec. 31, 2009USD ($) | Dec. 31, 2009EUR (€) | Dec. 31, 2008GBP (£) | Dec. 31, 2008USD ($) | Dec. 31, 2008EUR (€) | Jul. 25, 2017 | Feb. 17, 2017GBP (£) | Feb. 17, 2017USD ($) |
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs commitment allocated to later period | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||
Payments for funding agreement | £ 25,000,000 | $ 32,000,000 | £ 18,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Provision for environmental clean-up costs | 108,000,000 | 137,500,000 | |||||||||||||||||||||||||||||||||||||||||||
Amount paid for attorneys fees and statutory interest | £ 82,367,291 | $ 104,902,981.61 | |||||||||||||||||||||||||||||||||||||||||||
Windward Dividend Claim | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Dividend paid to Sequana | € | € 135 | ||||||||||||||||||||||||||||||||||||||||||||
Windward Dividend Claim | Windward | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement amount | £ 145,000,000 | $ 185,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Initial litigation settlement amount awarded to Windward | £ 108,700,000 | $ 138,400,000 | |||||||||||||||||||||||||||||||||||||||||||
Windward Dividend Claim | Windward | Judgment from Court of Appeal | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement amount liable to pay due to calculation change | £ 145,000,000 | $ 185,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Fox River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs commitment with NCR | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||
Fox River | Sequana | Judgment from Court of Appeal | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement amount liable to pay due to calculation change | £ 10,000,000 | $ 12,700,000 | |||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Past remediation costs | £ 43,000,000 | $ 55,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Cost of performing future remediation | £ 526,000,000 | $ 670,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | N C R | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Estimated recovery percentage by related party | 40.00% | 40.00% | 60.00% | 60.00% | |||||||||||||||||||||||||||||||||||||||||
Amount paid for attorneys fees and statutory interest | £ 17,300,000 | $ 22,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Kalamazoo River | N C R And Appvion | Funding | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Recovery amount for Future Sites | £ 19,700,000 | $ 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Windward Dividend Claim | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Dividend paid to Sequana | £ 121,000,000 | $ 154,000,000 | € 135 | £ 121,000,000 | $ 154,000,000 | € 135 | £ 398,000,000 | $ 506,000,000 | € 443 | ||||||||||||||||||||||||||||||||||||
Fox River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Total estimated clean-up costs | £ 648,000,000 | $ 825,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Case dismissed date | Oct. 11, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs obligation commitment with NCR | 60.00% | 60.00% | |||||||||||||||||||||||||||||||||||||||||||
Percentage of environmental clean-up costs demanded | 60.00% | ||||||||||||||||||||||||||||||||||||||||||||
Bottom of Range | Fox River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Total NRDs | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Top of Range | Fox River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Total NRDs | £ 193,000,000 | $ 246,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Glo Litigation | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Amount of damages claimed | £ 715,650 | $ 911,452 | ¥ 100 | ||||||||||||||||||||||||||||||||||||||||||
Mozambican IP Litigation | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation | £ 572,907 | $ 730,000 | £ 190,000,000 | $ 242,000,000 | |||||||||||||||||||||||||||||||||||||||||
Windward | Fox River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Environmental clean-up costs paid by related party | £ 7,800,000 | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Appvion | Fox River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Environmental clean-up costs paid by related party | 19,600,000 | 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Appvion | Kalamazoo River | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Environmental clean-up costs paid by related party | £ 19,600,000 | $ 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Reynolds American Inc. | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 57.80% | ||||||||||||||||||||||||||||||||||||||||||||
Number of dissenting stockholders | Case | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Number of groups justice dissenting stockholders | Group | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Reynolds American Inc. | Group One | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Affiliated entities claiming price per share value | $ 81.21 | ||||||||||||||||||||||||||||||||||||||||||||
Reynolds American Inc. | Group Two | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Affiliated entities claiming price per share value | 88.16 | ||||||||||||||||||||||||||||||||||||||||||||
Reynolds American Inc. | Group Three | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Affiliated entities claiming price per share value | $ 94.33 | ||||||||||||||||||||||||||||||||||||||||||||
Reynolds American Inc. | Lorillard Inc | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Definitive merger agreement announced date | Jul. 15, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Percentage of interest in associate | 42.20% | ||||||||||||||||||||||||||||||||||||||||||||
Maximum amount of purchased newly issued stock | £ 722,000,000 | $ 920,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Croatian Distributor Dispute | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Amount of damages related to litigation | £ 49,000,000 | $ 63,000,000 | kn 408,401,866.15 | ||||||||||||||||||||||||||||||||||||||||||
Amount of claim against damages related to litigation | £ 49,000,000 | $ 63,000,000 | kn 408,401,866.15 | ||||||||||||||||||||||||||||||||||||||||||
Croatian Distributor Dispute | Reynolds American Inc. | |||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Attorney fees and costs | £ 326,000 | $ 415,000 |
Contingent Liabilities and F_16
Contingent Liabilities and Financial Commitments - Closed Litigation Matters Explanatory (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Fontem Patent Litigation | United States | |
Disclosure of Current Status of Litigation Cases [Line Items] | |
Matter | Fontem |
Jurisdiction | USA |
Companies named as Defendants | R.J. Reynolds Vapor Company |
Description | Alleged patent infringement |
Disposition | Settlement agreed on confidential terms |
Codacons | ITALY | |
Disclosure of Current Status of Litigation Cases [Line Items] | |
Matter | Codacons |
Jurisdiction | Italy |
Companies named as Defendants | BAT Italia |
Description | Smoking and health class action |
Disposition | Supreme Court decision |
Investments Indemnity | JAPAN | |
Disclosure of Current Status of Litigation Cases [Line Items] | |
Matter | Investments Indemnity |
Jurisdiction | Japan |
Companies named as Defendants | British American Tobacco (Investments) Limited |
Description | Alleged patent infringement |
Disposition | Settlement agreed on confidential terms |
Lights Class Actions | United States | |
Disclosure of Current Status of Litigation Cases [Line Items] | |
Matter | Lights Class Actions |
Jurisdiction | USA |
Companies named as Defendants | RJRT and B&W |
Description | Four Lights class actions |
Disposition | Court ordered dismissal |
Parsons Class Action | United States | |
Disclosure of Current Status of Litigation Cases [Line Items] | |
Matter | Parsons Class Action |
Jurisdiction | USA |
Companies named as Defendants | RJRT and B&W |
Description | Smoking and health class action |
Disposition | Court ordered dismissal |
Contingent Liabilities and F_17
Contingent Liabilities and Financial Commitments - Other contingencies - Additional Information (Details) € in Millions, £ in Millions, $ in Millions | Jun. 12, 2015Cigarette | Dec. 31, 2018GBP (£)ClassAction | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Purchase agreement Date | Mar. 9, 1999 | |||
Purchase agreement Amendment Date | May 11, 1999 | |||
Loews | ||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Loss contingency number of cases affirmed in favour of defendants | ClassAction | 3 | |||
SFRTI Indemnity | ||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Amount of dispute | £ 18.8 | $ 24 | € 21 | |
Winston Kool Salem Or Maverick | ||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||
Purchase agreement Date | Jun. 12, 2015 | |||
Cigarette brand subjected to indemnity | Cigarette | 1 |
Contingent Liabilities and F_18
Contingent Liabilities and Financial Commitments - Tax Disputes - Additional Information (Details) € in Millions, £ in Millions, R$ in Millions, R in Billions | 12 Months Ended | |||||
Dec. 31, 2018GBP (£)Case | Dec. 31, 2015 | Dec. 31, 2018EUR (€) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018ZAR (R) | Jul. 25, 2018GBP (£) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Reassessment, statute of limitation period | 5 years | |||||
BRAZIL | Tax Reassessment | Souza Cruz | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Tax reassessed amount | £ 330 | R$ 1630 | ||||
South Africa | Tax Reassessment | British American Tobacco South Africa | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Tax reassessed amount | 116 | R 2.1 | ||||
Netherlands | Tax Reassessment | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Tax reassessed amount | € | € 902 | |||||
Bangladesh | Tax Reassessment | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Tax reassessed amount | £ 170 | |||||
EGYPT | Tax Reassessment | ||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||
Tax reassessed amount | £ 102 | |||||
Number of ongoing civil cases | Case | 2 |
Contingent Liabilities and F_19
Contingent Liabilities and Financial Commitments - Schedule of Total Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) - GBP (£) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | £ 690,000,000 | £ 445,000,000 |
Property | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | 517,000,000 | 375,000,000 |
Property, Plant and Equipment | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | 173,000,000 | 70,000,000 |
Within One Year | Property | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | 111,000,000 | 75,000,000 |
Within One Year | Property, Plant and Equipment | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | 66,000,000 | 32,000,000 |
Between One and Five Years | Property | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | 269,000,000 | 183,000,000 |
Between One and Five Years | Property, Plant and Equipment | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | 107,000,000 | 38,000,000 |
Beyond 5 Years | Property | ||
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items] | ||
Total future minimum lease payments | £ 137,000,000 | £ 117,000,000 |
Contingent Liabilities and F_20
Contingent Liabilities and Financial Commitments - Performance Guarantees - Additional Information (Details) - GBP (£) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Croatia | Increase (Decrease) due to Corrections of Prior Period Errors | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Performance guarantees period under acquisition | 5 years | |
Maximum exposure under guarantees | £ 46,000,000 | £ 46,000,000 |
Rovinji | ||
Disclosure Of Commitments And Contingencies [Line Items] | ||
Performance guarantees period under acquisition | 4 years | |
Maximum exposure under guarantees | £ 1,000,000 |
Interests in Subsidiaries - Add
Interests in Subsidiaries - Additional Information (Details) - shares shares in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2011 | |
Disclosure of Significant Investments in Subsidiaries [Line Items] | ||||
Ownership held in non-controlling interest | 50.00% | 50.00% | ||
PT Bentoel Internasional Investama Tbk | ||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | ||||
Ownership held in non-controlling interest | 92.00% | 92.00% | ||
Shares sold in non-controlling interest | 984 | |||
Percentage of share sold in non-controlling interest | 14.00% | |||
Total return swap entered, shares | 1,684 | 971 | ||
Percentage of total return swap of issued capital | 7.00% | |||
Effective interest recognise of net assets | 99.00% | |||
Tisak d.d. | ||||
Disclosure of Significant Investments in Subsidiaries [Line Items] | ||||
Investment percentage | 42.00% |
Interests in Subsidiaries - Sum
Interests in Subsidiaries - Summary of Financial Information of Subsidiaries with Material Non-controlling Interests (Details) - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | |||||
Revenue | [1] | £ 24,492 | £ 14,130 | ||
Profit for the year | 6,210 | 4,839 | |||
– Attributable to non-controlling interests | 178 | 191 | |||
Total comprehensive income | 9,424 | 6,426 | |||
– Attributable to non-controlling interests | 185 | 246 | |||
Summary net assets: | |||||
Noncurrent assets | 133,687 | ||||
Current assets | 12,655 | ||||
Non-current liabilities | (64,325) | ||||
Current liabilities | (16,329) | ||||
Total equity | 65,688 | £ 60,981 | 8,406 | £ 5,032 | |
Net cash generated from operating activities | 10,295 | 4,610 | |||
Net cash generated in investing activities | (1,021) | (640) | |||
Net cash used in financing activities | (9,630) | (4,229) | |||
Differences on exchange | (138) | 180 | |||
(Decrease)/increase in net cash and cash equivalents in the year | (494) | (79) | |||
Net cash and cash equivalents at 1 January | 2,822 | 1,651 | 1,730 | ||
Net cash and cash equivalents at 31 December | 2,328 | 2,822 | 1,651 | ||
Restatement Adjustments | |||||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | |||||
Revenue | [1] | 19,564 | |||
Profit for the year | 37,656 | ||||
– Attributable to non-controlling interests | 171 | ||||
Total comprehensive income | 34,528 | ||||
– Attributable to non-controlling interests | 167 | ||||
Summary net assets: | |||||
Noncurrent assets | 127,088 | ||||
Current assets | 13,966 | ||||
Non-current liabilities | (64,468) | ||||
Current liabilities | (15,605) | ||||
Total equity | 60,981 | 8,406 | |||
Net cash generated from operating activities | 5,347 | ||||
Net cash generated in investing activities | (18,544) | ||||
Net cash used in financing activities | 14,759 | ||||
Differences on exchange | (391) | ||||
(Decrease)/increase in net cash and cash equivalents in the year | 1,171 | ||||
Net cash and cash equivalents at 1 January | 2,822 | ||||
Net cash and cash equivalents at 31 December | 2,822 | ||||
Subsidiaries with Material Non-controlling Interests | |||||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | |||||
Revenue | 231 | 317 | |||
Profit for the year | 87 | 129 | |||
– Attributable to non-controlling interests | 43 | 64 | |||
Total comprehensive income | 87 | 146 | |||
– Attributable to non-controlling interests | 43 | 73 | |||
Dividends paid to non-controlling interests | (40) | (59) | |||
Summary net assets: | |||||
Noncurrent assets | 16 | 31 | |||
Current assets | 116 | 103 | |||
Non-current liabilities | (4) | ||||
Current liabilities | (129) | (94) | |||
Total equity | 3 | 36 | |||
– Attributable to non-controlling interests | 1 | 18 | |||
Net cash generated from operating activities | 86 | 108 | |||
Net cash generated in investing activities | (2) | 45 | |||
Net cash used in financing activities | (77) | (151) | |||
Differences on exchange | 1 | 1 | |||
(Decrease)/increase in net cash and cash equivalents in the year | 8 | 3 | |||
Net cash and cash equivalents at 1 January | 2 | 8 | 5 | ||
Net cash and cash equivalents at 31 December | 10 | 2 | 8 | ||
Subsidiaries with Material Non-controlling Interests | Restatement Adjustments | |||||
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items] | |||||
Revenue | 237 | ||||
Profit for the year | 89 | ||||
– Attributable to non-controlling interests | 44 | ||||
Total comprehensive income | 87 | ||||
– Attributable to non-controlling interests | 43 | ||||
Dividends paid to non-controlling interests | (64) | ||||
Summary net assets: | |||||
Noncurrent assets | 18 | ||||
Current assets | 101 | ||||
Non-current liabilities | (5) | ||||
Current liabilities | (120) | ||||
Total equity | (6) | ||||
– Attributable to non-controlling interests | (3) | ||||
Net cash generated from operating activities | 67 | ||||
Net cash generated in investing activities | 14 | ||||
Net cash used in financing activities | (86) | ||||
Differences on exchange | (1) | ||||
(Decrease)/increase in net cash and cash equivalents in the year | (6) | ||||
Net cash and cash equivalents at 1 January | £ 2 | 8 | |||
Net cash and cash equivalents at 31 December | £ 2 | £ 8 | |||
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Condensed consolidating finan_3
Condensed consolidating financial information - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Reynolds American Inc. | ||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||
Unsecured notes | $ 11,000 | $ 12,200 |
Bonds Issued, registered portion | $ 17,200 | |
Bonds Issued, registered portion percentage | 99.70% | |
Bonds issued | $ 17,250 | |
Lorillard Inc | ||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||
Unsecured notes | $ 231 |
Condensed consolidating finan_4
Condensed consolidating financial information - Condensed Consolidated Income Statement (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | [1] | £ 24,492 | £ 14,130 | |
Raw materials and consumables used | (4,664) | (3,777) | ||
Changes in inventories of finished goods and work in progress | 114 | 44 | ||
Employee benefit costs | (3,005) | £ (2,679) | (2,274) | |
Depreciation, amortisation and impairment costs | (1,038) | (902) | (607) | |
Other operating income | 85 | 176 | ||
Loss on reclassification from amortised cost to fair value | (3) | |||
Other operating expenses | (6,668) | (3,037) | ||
Profit from operations | 9,313 | 4,655 | ||
Net finance costs | (1,381) | (1,094) | (637) | |
Share of post-tax results of associates and joint ventures | 419 | 2,227 | ||
Profit before taxation | 8,351 | 6,245 | ||
Taxation on ordinary activities | (2,141) | (1,406) | ||
Profit for the year | 6,210 | 4,839 | ||
Attributable to: | ||||
Owners of the parent | 6,032 | 4,648 | ||
Non-controlling interests | 178 | 191 | ||
Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 24,492 | 14,130 | ||
Raw materials and consumables used | (4,664) | (3,777) | ||
Changes in inventories of finished goods and work in progress | 114 | 44 | ||
Employee benefit costs | (3,005) | (2,274) | ||
Depreciation, amortisation and impairment costs | (1,038) | (607) | ||
Other operating income | 85 | 176 | ||
Loss on reclassification from amortised cost to fair value | (3) | |||
Other operating expenses | (6,668) | (3,037) | ||
Profit from operations | 9,313 | 4,655 | ||
Net finance costs | (1,381) | (637) | ||
Share of post-tax results of associates and joint ventures | 419 | 2,227 | ||
Profit before taxation | 8,351 | 6,245 | ||
Taxation on ordinary activities | (2,141) | (1,406) | ||
Profit for the year | 6,210 | 4,839 | ||
Attributable to: | ||||
Owners of the parent | 6,032 | 4,648 | ||
Non-controlling interests | 178 | 191 | ||
Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | [1] | 19,564 | ||
Raw materials and consumables used | (4,520) | |||
Changes in inventories of finished goods and work in progress | (513) | |||
Employee benefit costs | (2,679) | |||
Depreciation, amortisation and impairment costs | (902) | |||
Other operating income | 144 | |||
Other operating expenses | (4,682) | |||
Profit from operations | 6,412 | |||
Net finance costs | (1,094) | |||
Share of post-tax results of associates and joint ventures | 24,209 | |||
Profit before taxation | 29,527 | |||
Taxation on ordinary activities | 8,129 | |||
Profit for the year | 37,656 | |||
Attributable to: | ||||
Owners of the parent | 37,485 | |||
Non-controlling interests | 171 | |||
Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 19,564 | |||
Raw materials and consumables used | (4,520) | |||
Changes in inventories of finished goods and work in progress | (513) | |||
Employee benefit costs | (2,679) | |||
Depreciation, amortisation and impairment costs | (902) | |||
Other operating income | 144 | |||
Other operating expenses | (4,682) | |||
Profit from operations | 6,412 | |||
Net finance costs | (1,094) | |||
Share of post-tax results of associates and joint ventures | 24,209 | |||
Profit before taxation | 29,527 | |||
Taxation on ordinary activities | 8,129 | |||
Profit for the year | 37,656 | |||
Attributable to: | ||||
Owners of the parent | 37,485 | |||
Non-controlling interests | 171 | |||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (5) | (7) | ||
Other operating expenses | (124) | (75) | ||
Profit from operations | (129) | (82) | ||
Net finance costs | 95 | (54) | ||
Profit before taxation | (34) | (136) | ||
Equity income from subsidiaries | 6,210 | 4,839 | ||
Profit for the year | 6,176 | 4,703 | ||
Attributable to: | ||||
Owners of the parent | 6,176 | 4,703 | ||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (5) | (7) | ||
Other operating expenses | (124) | (75) | ||
Profit from operations | (129) | (82) | ||
Net finance costs | 95 | (54) | ||
Profit before taxation | (34) | (136) | ||
Equity income from subsidiaries | 6,210 | 4,839 | ||
Profit for the year | 6,176 | 4,703 | ||
Attributable to: | ||||
Owners of the parent | 6,176 | 4,703 | ||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (8) | |||
Other operating expenses | (101) | |||
Profit from operations | (109) | |||
Net finance costs | 3 | |||
Profit before taxation | (106) | |||
Equity income from subsidiaries | 37,656 | |||
Profit for the year | 37,550 | |||
Attributable to: | ||||
Owners of the parent | 37,550 | |||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (8) | |||
Other operating expenses | (101) | |||
Profit from operations | (109) | |||
Net finance costs | 3 | |||
Profit before taxation | (106) | |||
Equity income from subsidiaries | 37,656 | |||
Profit for the year | 37,550 | |||
Attributable to: | ||||
Owners of the parent | 37,550 | |||
Reportable Legal Entities | RJRT, Issuer (LB) | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 7,752 | |||
Raw materials and consumables used | (662) | |||
Changes in inventories of finished goods and work in progress | (4) | |||
Employee benefit costs | (169) | |||
Depreciation, amortisation and impairment costs | (91) | |||
Other operating income | 3 | |||
Other operating expenses | (6,579) | |||
Profit from operations | 250 | |||
Net finance costs | 9 | |||
Profit before taxation | 259 | |||
Taxation on ordinary activities | (100) | |||
Equity income from subsidiaries | 2,569 | |||
Profit for the year | 2,728 | |||
Attributable to: | ||||
Owners of the parent | 2,728 | |||
Reportable Legal Entities | RJRT, Issuer (LB) | Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 3,459 | |||
Raw materials and consumables used | (346) | |||
Changes in inventories of finished goods and work in progress | (7) | |||
Employee benefit costs | (117) | |||
Depreciation, amortisation and impairment costs | (28) | |||
Other operating income | 7 | |||
Other operating expenses | (2,889) | |||
Profit from operations | 79 | |||
Net finance costs | 11 | |||
Profit before taxation | 90 | |||
Taxation on ordinary activities | (240) | |||
Equity income from subsidiaries | 3,870 | |||
Profit for the year | 3,720 | |||
Attributable to: | ||||
Owners of the parent | 3,720 | |||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (13) | |||
Other operating income | 22 | |||
Other operating expenses | (17) | |||
Profit from operations | (8) | |||
Net finance costs | (421) | |||
Profit before taxation | (429) | |||
Taxation on ordinary activities | 93 | |||
Equity income from subsidiaries | 3,436 | |||
Profit for the year | 3,100 | |||
Attributable to: | ||||
Owners of the parent | 3,100 | |||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (35) | |||
Other operating income | 34 | |||
Other operating expenses | (6) | |||
Profit from operations | (7) | |||
Net finance costs | (190) | |||
Profit before taxation | (197) | |||
Taxation on ordinary activities | 61 | |||
Equity income from subsidiaries | 4,259 | |||
Profit for the year | 4,123 | |||
Attributable to: | ||||
Owners of the parent | 4,123 | |||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Net finance costs | 3 | |||
Profit before taxation | 3 | |||
Taxation on ordinary activities | 1 | |||
Equity income from subsidiaries | 2,755 | |||
Profit for the year | 2,759 | |||
Attributable to: | ||||
Owners of the parent | 2,759 | |||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (2) | |||
Profit from operations | (2) | |||
Net finance costs | 9 | |||
Profit before taxation | 7 | |||
Taxation on ordinary activities | (3) | |||
Equity income from subsidiaries | 3,893 | |||
Profit for the year | 3,897 | |||
Attributable to: | ||||
Owners of the parent | 3,897 | |||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 16,959 | 14,130 | ||
Raw materials and consumables used | (4,161) | (3,777) | ||
Changes in inventories of finished goods and work in progress | 118 | 44 | ||
Employee benefit costs | (2,822) | (2,274) | ||
Depreciation, amortisation and impairment costs | (947) | (607) | ||
Other operating income | 3,847 | 176 | ||
Loss on reclassification from amortised cost to fair value | (3) | |||
Other operating expenses | (3,819) | (3,037) | ||
Profit from operations | 9,172 | 4,655 | ||
Net finance costs | (947) | (637) | ||
Share of post-tax results of associates and joint ventures | 419 | 2,227 | ||
Profit before taxation | 8,644 | 6,245 | ||
Taxation on ordinary activities | (2,135) | (1,406) | ||
Profit for the year | 6,509 | 4,839 | ||
Attributable to: | ||||
Owners of the parent | 6,331 | 4,648 | ||
Non-controlling interests | 178 | 191 | ||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 24,492 | 14,130 | ||
Raw materials and consumables used | (4,664) | (3,777) | ||
Changes in inventories of finished goods and work in progress | 114 | 44 | ||
Employee benefit costs | (2,990) | (2,271) | ||
Depreciation, amortisation and impairment costs | (1,038) | (607) | ||
Other operating income | 63 | 176 | ||
Loss on reclassification from amortised cost to fair value | (3) | |||
Other operating expenses | (6,643) | (3,033) | ||
Profit from operations | 9,331 | 4,662 | ||
Net finance costs | (599) | (1,231) | ||
Share of post-tax results of associates and joint ventures | 419 | 2,227 | ||
Profit before taxation | 9,151 | 5,658 | ||
Taxation on ordinary activities | (2,163) | (1,469) | ||
Profit for the year | 6,988 | 4,189 | ||
Attributable to: | ||||
Owners of the parent | 6,810 | 3,998 | ||
Non-controlling interests | 178 | 191 | ||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 16,243 | |||
Raw materials and consumables used | (4,286) | |||
Changes in inventories of finished goods and work in progress | (507) | |||
Employee benefit costs | (2,525) | |||
Depreciation, amortisation and impairment costs | (874) | |||
Other operating income | 1,859 | |||
Other operating expenses | (3,499) | |||
Profit from operations | 6,411 | |||
Net finance costs | (908) | |||
Share of post-tax results of associates and joint ventures | 24,209 | |||
Profit before taxation | 29,712 | |||
Taxation on ordinary activities | 8,311 | |||
Profit for the year | 38,023 | |||
Attributable to: | ||||
Owners of the parent | 37,852 | |||
Non-controlling interests | 171 | |||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | 19,564 | |||
Raw materials and consumables used | (4,520) | |||
Changes in inventories of finished goods and work in progress | (513) | |||
Employee benefit costs | (2,641) | |||
Depreciation, amortisation and impairment costs | (902) | |||
Other operating income | 109 | |||
Other operating expenses | (4,671) | |||
Profit from operations | 6,426 | |||
Net finance costs | (1,403) | |||
Share of post-tax results of associates and joint ventures | 24,209 | |||
Profit before taxation | 29,232 | |||
Taxation on ordinary activities | 8,094 | |||
Profit for the year | 37,326 | |||
Attributable to: | ||||
Owners of the parent | 37,155 | |||
Non-controlling interests | 171 | |||
Reportable Legal Entities | BATCAP, Issuer | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Other operating expenses | (3) | |||
Profit from operations | (3) | |||
Net finance costs | 239 | |||
Profit before taxation | 236 | |||
Taxation on ordinary activities | (79) | |||
Profit for the year | 157 | |||
Attributable to: | ||||
Owners of the parent | 157 | |||
Reportable Legal Entities | BATCAP, Issuer | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Other operating income | 1 | |||
Other operating expenses | (1) | |||
Net finance costs | (62) | |||
Profit before taxation | (62) | |||
Taxation on ordinary activities | 10 | |||
Profit for the year | (52) | |||
Attributable to: | ||||
Owners of the parent | (52) | |||
Reportable Legal Entities | BATIF | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Other operating expenses | (1) | (4) | ||
Profit from operations | (1) | (4) | ||
Net finance costs | 96 | 1,006 | ||
Profit before taxation | 95 | 1,002 | ||
Taxation on ordinary activities | 7 | (2) | ||
Profit for the year | 102 | 1,000 | ||
Attributable to: | ||||
Owners of the parent | 102 | 1,000 | ||
Reportable Legal Entities | BATIF | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Other operating expenses | (1) | |||
Profit from operations | (1) | |||
Net finance costs | (22) | |||
Profit before taxation | (23) | |||
Taxation on ordinary activities | (40) | |||
Profit for the year | (63) | |||
Attributable to: | ||||
Owners of the parent | (63) | |||
Reportable Legal Entities | BATHTN | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (2) | (3) | ||
Other operating expenses | (4) | |||
Profit from operations | (6) | (3) | ||
Net finance costs | 248 | (412) | ||
Profit before taxation | 242 | (415) | ||
Taxation on ordinary activities | 1 | 65 | ||
Profit for the year | 243 | (350) | ||
Attributable to: | ||||
Owners of the parent | 243 | (350) | ||
Reportable Legal Entities | BATHTN | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (3) | |||
Other operating income | 1 | |||
Other operating expenses | (2) | |||
Profit from operations | (4) | |||
Net finance costs | 636 | |||
Profit before taxation | 632 | |||
Taxation on ordinary activities | 4 | |||
Profit for the year | 636 | |||
Attributable to: | ||||
Owners of the parent | 636 | |||
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (13) | |||
Other operating income | 22 | |||
Other operating expenses | (17) | |||
Profit from operations | (8) | |||
Net finance costs | (421) | |||
Profit before taxation | (429) | |||
Taxation on ordinary activities | 93 | |||
Equity income from subsidiaries | 3,436 | |||
Profit for the year | 3,100 | |||
Attributable to: | ||||
Owners of the parent | 3,100 | |||
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | (35) | |||
Other operating income | 33 | |||
Other operating expenses | (7) | |||
Profit from operations | (9) | |||
Net finance costs | (191) | |||
Profit before taxation | (200) | |||
Taxation on ordinary activities | 61 | |||
Equity income from subsidiaries | 4,259 | |||
Profit for the year | 4,120 | |||
Attributable to: | ||||
Owners of the parent | 4,120 | |||
Eliminations | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | (219) | |||
Raw materials and consumables used | 159 | |||
Employee benefit costs | 4 | 7 | ||
Other operating income | (3,787) | |||
Other operating expenses | 3,871 | 75 | ||
Profit from operations | 28 | 82 | ||
Net finance costs | (120) | 54 | ||
Profit before taxation | (92) | 136 | ||
Equity income from subsidiaries | (14,970) | (4,839) | ||
Profit for the year | (15,062) | (4,703) | ||
Attributable to: | ||||
Owners of the parent | (15,062) | (4,703) | ||
Eliminations | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | 5 | 7 | ||
Other operating expenses | 124 | 75 | ||
Profit from operations | 129 | 82 | ||
Net finance costs | (1,039) | 54 | ||
Profit before taxation | (910) | 136 | ||
Equity income from subsidiaries | (9,646) | (4,839) | ||
Profit for the year | (10,556) | (4,703) | ||
Attributable to: | ||||
Owners of the parent | £ (10,556) | £ (4,703) | ||
Eliminations | Restatement Adjustments | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Revenue | (138) | |||
Raw materials and consumables used | 112 | |||
Changes in inventories of finished goods and work in progress | 1 | |||
Employee benefit costs | 8 | |||
Other operating income | (1,756) | |||
Other operating expenses | 1,813 | |||
Profit from operations | 40 | |||
Net finance costs | (19) | |||
Profit before taxation | 21 | |||
Equity income from subsidiaries | (49,678) | |||
Profit for the year | (49,657) | |||
Attributable to: | ||||
Owners of the parent | (49,657) | |||
Eliminations | Restatement Adjustments | Registered BATCAP bonds | ||||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | ||||
Employee benefit costs | 8 | |||
Other operating expenses | 101 | |||
Profit from operations | 109 | |||
Net finance costs | (55) | |||
Profit before taxation | 54 | |||
Equity income from subsidiaries | (41,915) | |||
Profit for the year | (41,861) | |||
Attributable to: | ||||
Owners of the parent | £ (41,861) | |||
[1] | Revenue is net of duty, excise and other taxes of £38,553 million, £37,780 million and £32,136 million for the years ended 31 December 2018, 2017 and 2016, respectively. |
Condensed consolidating finan_5
Condensed consolidating financial information - Condensed Consolidated Statement of Comprehensive Income (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | £ 6,210 | £ 4,839 | |
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | 3,099 | 1,760 | |
Differences on exchange | 3,868 | 1,270 | |
Cash flow hedges | (41) | 55 | |
Net investment hedges | (708) | (961) | |
Associates – share of OCI, net of tax | (38) | 1,415 | |
Tax on items that may be reclassified | 18 | (19) | |
Items that will not be reclassified subsequently to profit or loss: | 115 | (173) | |
Retirement benefit schemes | 142 | (229) | |
Associates – share of OCI, net of tax | 6 | 20 | |
Tax on items that will not be reclassified | (33) | 36 | |
Total other comprehensive income/(expense) for the year, net of tax | 3,214 | 1,587 | |
Total comprehensive income for the year, net of tax | 9,424 | 6,426 | |
Attributable to: | |||
Owners of the parent | 9,239 | 6,180 | |
Non-controlling interests | 185 | 246 | |
Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 6,210 | 4,839 | |
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | 3,099 | 1,760 | |
Differences on exchange | 3,868 | 1,270 | |
Cash flow hedges | (41) | 55 | |
Net investment hedges | (708) | (961) | |
Associates – share of OCI, net of tax | (38) | 1,415 | |
Tax on items that may be reclassified | 18 | (19) | |
Items that will not be reclassified subsequently to profit or loss: | 115 | (173) | |
Retirement benefit schemes | 142 | (229) | |
Associates – share of OCI, net of tax | 6 | 20 | |
Tax on items that will not be reclassified | (33) | 36 | |
Total other comprehensive income/(expense) for the year, net of tax | 3,214 | 1,587 | |
Total comprehensive income for the year, net of tax | 9,424 | 6,426 | |
Attributable to: | |||
Owners of the parent | 9,239 | 6,180 | |
Non-controlling interests | 185 | 246 | |
Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | £ 37,656 | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (3,809) | ||
Differences on exchange | (3,084) | ||
Cash flow hedges | (171) | ||
Investments held at fair value | (27) | ||
Net investment hedges | 357 | ||
Associates – share of OCI, net of tax | (918) | ||
Tax on items that may be reclassified | 34 | ||
Items that will not be reclassified subsequently to profit or loss: | 681 | ||
Retirement benefit schemes | 827 | ||
Associates – share of OCI, net of tax | 25 | ||
Tax on items that will not be reclassified | (171) | ||
Total other comprehensive income/(expense) for the year, net of tax | (3,128) | ||
Total comprehensive income for the year, net of tax | 34,528 | ||
Attributable to: | |||
Owners of the parent | 34,361 | ||
Non-controlling interests | 167 | ||
Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 37,656 | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (3,809) | ||
Differences on exchange | (3,084) | ||
Cash flow hedges | (171) | ||
Investments held at fair value | (27) | ||
Net investment hedges | 357 | ||
Associates – share of OCI, net of tax | (918) | ||
Tax on items that may be reclassified | 34 | ||
Items that will not be reclassified subsequently to profit or loss: | 681 | ||
Retirement benefit schemes | 827 | ||
Associates – share of OCI, net of tax | 25 | ||
Tax on items that will not be reclassified | (171) | ||
Total other comprehensive income/(expense) for the year, net of tax | (3,128) | ||
Total comprehensive income for the year, net of tax | 34,528 | ||
Attributable to: | |||
Owners of the parent | 34,361 | ||
Non-controlling interests | 167 | ||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 6,176 | 4,703 | |
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 9,390 | 6,290 | |
Attributable to: | |||
Owners of the parent | 9,390 | 6,290 | |
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 6,176 | 4,703 | |
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 9,390 | 6,290 | |
Attributable to: | |||
Owners of the parent | 9,390 | 6,290 | |
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 37,550 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 34,422 | ||
Attributable to: | |||
Owners of the parent | 34,422 | ||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 37,550 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 34,422 | ||
Attributable to: | |||
Owners of the parent | 34,422 | ||
Reportable Legal Entities | RJRT, Issuer (LB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 2,728 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 2,728 | ||
Attributable to: | |||
Owners of the parent | 2,728 | ||
Reportable Legal Entities | RJRT, Issuer (LB) | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 3,720 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 3,720 | ||
Attributable to: | |||
Owners of the parent | 3,720 | ||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 3,100 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 3,100 | ||
Attributable to: | |||
Owners of the parent | 3,100 | ||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 4,123 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 4,123 | ||
Attributable to: | |||
Owners of the parent | 4,123 | ||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 2,759 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 2,759 | ||
Attributable to: | |||
Owners of the parent | 2,759 | ||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 3,897 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 3,897 | ||
Attributable to: | |||
Owners of the parent | 3,897 | ||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 6,509 | 4,839 | |
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | 3,099 | 1,760 | |
Differences on exchange | 3,868 | 1,270 | |
Cash flow hedges | (41) | 55 | |
Net investment hedges | (708) | (961) | |
Associates – share of OCI, net of tax | (38) | 1,415 | |
Tax on items that may be reclassified | 18 | (19) | |
Items that will not be reclassified subsequently to profit or loss: | 115 | (173) | |
Retirement benefit schemes | 142 | (229) | |
Associates – share of OCI, net of tax | 6 | 20 | |
Tax on items that will not be reclassified | (33) | 36 | |
Total other comprehensive income/(expense) for the year, net of tax | 3,214 | 1,587 | |
Total comprehensive income for the year, net of tax | 9,723 | 6,426 | |
Attributable to: | |||
Owners of the parent | 9,538 | 6,180 | |
Non-controlling interests | 185 | 246 | |
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 6,988 | 4,189 | |
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | 3,185 | 2,157 | |
Differences on exchange | 3,868 | 1,270 | |
Cash flow hedges | 45 | 50 | |
Net investment hedges | (708) | (559) | |
Associates – share of OCI, net of tax | (38) | 1,415 | |
Tax on items that may be reclassified | 18 | (19) | |
Items that will not be reclassified subsequently to profit or loss: | 115 | (173) | |
Retirement benefit schemes | 142 | (229) | |
Associates – share of OCI, net of tax | 6 | 20 | |
Tax on items that will not be reclassified | (33) | 36 | |
Total other comprehensive income/(expense) for the year, net of tax | 3,300 | 1,984 | |
Total comprehensive income for the year, net of tax | 10,288 | 6,173 | |
Attributable to: | |||
Owners of the parent | 10,103 | 5,927 | |
Non-controlling interests | 185 | 246 | |
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 38,023 | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (3,809) | ||
Differences on exchange | (3,084) | ||
Cash flow hedges | (171) | ||
Investments held at fair value | (27) | ||
Net investment hedges | 357 | ||
Associates – share of OCI, net of tax | (918) | ||
Tax on items that may be reclassified | 34 | ||
Items that will not be reclassified subsequently to profit or loss: | 681 | ||
Retirement benefit schemes | 827 | ||
Associates – share of OCI, net of tax | 25 | ||
Tax on items that will not be reclassified | (171) | ||
Total other comprehensive income/(expense) for the year, net of tax | (3,128) | ||
Total comprehensive income for the year, net of tax | 34,895 | ||
Attributable to: | |||
Owners of the parent | 34,728 | ||
Non-controlling interests | 167 | ||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 37,326 | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (3,546) | ||
Differences on exchange | (3,084) | ||
Cash flow hedges | 81 | ||
Investments held at fair value | (27) | ||
Net investment hedges | 368 | ||
Associates – share of OCI, net of tax | (918) | ||
Tax on items that may be reclassified | 34 | ||
Items that will not be reclassified subsequently to profit or loss: | 681 | ||
Retirement benefit schemes | 827 | ||
Associates – share of OCI, net of tax | 25 | ||
Tax on items that will not be reclassified | (171) | ||
Total other comprehensive income/(expense) for the year, net of tax | (2,865) | ||
Total comprehensive income for the year, net of tax | 34,461 | ||
Attributable to: | |||
Owners of the parent | 34,294 | ||
Non-controlling interests | 167 | ||
Reportable Legal Entities | BATCAP, Issuer | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 157 | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (101) | ||
Cash flow hedges | (101) | ||
Total other comprehensive income/(expense) for the year, net of tax | (101) | ||
Total comprehensive income for the year, net of tax | 56 | ||
Attributable to: | |||
Owners of the parent | 56 | ||
Reportable Legal Entities | BATCAP, Issuer | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | (52) | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (242) | ||
Cash flow hedges | (242) | ||
Total other comprehensive income/(expense) for the year, net of tax | (242) | ||
Total comprehensive income for the year, net of tax | (294) | ||
Attributable to: | |||
Owners of the parent | (294) | ||
Reportable Legal Entities | BATIF | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 102 | 1,000 | |
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | 15 | (397) | |
Cash flow hedges | 15 | 5 | |
Net investment hedges | (402) | ||
Total other comprehensive income/(expense) for the year, net of tax | 15 | (397) | |
Total comprehensive income for the year, net of tax | 117 | 603 | |
Attributable to: | |||
Owners of the parent | 117 | 603 | |
Reportable Legal Entities | BATIF | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | (63) | ||
Other comprehensive income/(expense) | |||
Items that may be reclassified subsequently to profit or loss: | (21) | ||
Cash flow hedges | (10) | ||
Net investment hedges | (11) | ||
Total other comprehensive income/(expense) for the year, net of tax | (21) | ||
Total comprehensive income for the year, net of tax | (84) | ||
Attributable to: | |||
Owners of the parent | (84) | ||
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 3,100 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 3,100 | ||
Attributable to: | |||
Owners of the parent | 3,100 | ||
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 4,120 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 4,120 | ||
Attributable to: | |||
Owners of the parent | 4,120 | ||
Reportable Legal Entities | BATHTN | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 243 | (350) | |
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 243 | (350) | |
Attributable to: | |||
Owners of the parent | 243 | (350) | |
Reportable Legal Entities | BATHTN | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 636 | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | 636 | ||
Attributable to: | |||
Owners of the parent | 636 | ||
Eliminations | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | (15,062) | (4,703) | |
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | (18,276) | (6,290) | |
Attributable to: | |||
Owners of the parent | (18,276) | (6,290) | |
Eliminations | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | (10,556) | (4,703) | |
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | (13,770) | (6,290) | |
Attributable to: | |||
Owners of the parent | (13,770) | (6,290) | |
Eliminations | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | (49,657) | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | (46,529) | ||
Attributable to: | |||
Owners of the parent | (46,529) | ||
Eliminations | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | (41,861) | ||
Other comprehensive income/(expense) | |||
Total comprehensive income for the year, net of tax | (38,733) | ||
Attributable to: | |||
Owners of the parent | (38,733) | ||
Other Reserves | |||
Other comprehensive income/(expense) | |||
Differences on exchange | 3,861 | 1,218 | |
Associates – share of OCI, net of tax | (38) | 1,415 | |
Tax on items that may be reclassified | 18 | (19) | |
Associates – share of OCI, net of tax | 6 | ||
Total other comprehensive income/(expense) for the year, net of tax | 3,090 | 1,707 | |
Total comprehensive income for the year, net of tax | 3,090 | 1,707 | |
Other Reserves | Restatement Adjustments | |||
Other comprehensive income/(expense) | |||
Differences on exchange | (3,082) | ||
Associates – share of OCI, net of tax | (918) | ||
Tax on items that may be reclassified | 34 | ||
Total other comprehensive income/(expense) for the year, net of tax | (3,805) | ||
Total comprehensive income for the year, net of tax | (3,805) | ||
Other Reserves | Reportable Legal Entities | BAT p.l.c., Parent guarantor | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 115 | (173) | |
Other Reserves | Reportable Legal Entities | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 115 | (173) | |
Other Reserves | Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 681 | ||
Other Reserves | Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 681 | ||
Other Reserves | Eliminations | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (115) | 173 | |
Other Reserves | Eliminations | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (115) | 173 | |
Other Reserves | Eliminations | Restatement Adjustments | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (681) | ||
Other Reserves | Eliminations | Restatement Adjustments | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (681) | ||
Retained Earnings | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 6,032 | 4,648 | |
Other comprehensive income/(expense) | |||
Associates – share of OCI, net of tax | 20 | ||
Tax on items that will not be reclassified | (33) | 36 | |
Total other comprehensive income/(expense) for the year, net of tax | 117 | (175) | |
Total comprehensive income for the year, net of tax | 6,149 | 4,473 | |
Retained Earnings | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Profit for the year | 37,485 | ||
Other comprehensive income/(expense) | |||
Associates – share of OCI, net of tax | 25 | ||
Tax on items that will not be reclassified | (171) | ||
Total other comprehensive income/(expense) for the year, net of tax | 681 | ||
Total comprehensive income for the year, net of tax | 38,166 | ||
Retained Earnings | Reportable Legal Entities | BAT p.l.c., Parent guarantor | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 3,099 | 1,760 | |
Retained Earnings | Reportable Legal Entities | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 3,099 | 1,760 | |
Retained Earnings | Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (3,809) | ||
Retained Earnings | Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (3,809) | ||
Retained Earnings | Eliminations | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | (3,099) | (1,760) | |
Retained Earnings | Eliminations | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | £ (3,099) | £ (1,760) | |
Retained Earnings | Eliminations | Restatement Adjustments | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | 3,809 | ||
Retained Earnings | Eliminations | Restatement Adjustments | Registered BATCAP bonds | |||
Other comprehensive income/(expense) | |||
Share of subsidiaries OCI | £ 3,809 |
Condensed consolidating finan_6
Condensed consolidating financial information - Condensed Consolidated Balance Sheet (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Intangible assets | £ 124,013 | £ 117,785 | £ 12,117 | |
Property, plant and equipment | 5,166 | 4,882 | 3,661 | |
Investments in associates and joint ventures | 1,737 | |||
Retirement benefit assets | 1,147 | |||
Deferred tax assets | 344 | 333 | ||
Trade and other receivables | 685 | 756 | ||
Investments held at fair value | 39 | |||
Derivative financial instruments | 556 | 590 | ||
Total non-current assets | 133,687 | |||
Inventories | 6,029 | 5,864 | ||
Income tax receivable | 74 | |||
Trade and other receivables | 3,588 | 4,053 | ||
Investments held at fair value | 178 | 65 | ||
Derivative financial instruments | 179 | 228 | ||
Cash and cash equivalents | 2,602 | 3,291 | ||
Total current assets other than non-current assets classified as held for sale | 12,650 | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | 12,655 | |||
Total assets | 146,342 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 26,606 | |||
Other reserves | (333) | |||
Retained earnings | 38,557 | |||
Owners of the parent | 65,444 | |||
Non-controlling interests | 244 | |||
Total equity | 65,688 | 60,981 | 8,406 | £ 5,032 |
Liabilities | ||||
Borrowings | 43,284 | |||
Retirement benefit liabilities | 1,665 | 1,821 | ||
Deferred tax liabilities | 17,776 | 17,129 | ||
Other provisions for liabilities | 331 | 354 | ||
Trade and other payables | 1,055 | |||
Derivative financial instruments | 214 | 79 | ||
Total non-current liabilities | 64,325 | |||
Borrowings | 4,225 | |||
Income tax payable | 853 | |||
Other provisions for liabilities | 318 | 399 | ||
Trade and other payables | 10,631 | |||
Derivative financial instruments | 302 | 155 | ||
Total current liabilities | 16,329 | |||
Total equity and liabilities | 146,342 | |||
Registered BATCAP bonds | ||||
Assets | ||||
Intangible assets | 124,013 | |||
Property, plant and equipment | 5,166 | |||
Investments in associates and joint ventures | 1,737 | |||
Retirement benefit assets | 1,147 | |||
Deferred tax assets | 344 | |||
Trade and other receivables | 685 | |||
Investments held at fair value | 39 | |||
Derivative financial instruments | 556 | |||
Total non-current assets | 133,687 | |||
Inventories | 6,029 | |||
Income tax receivable | 74 | |||
Trade and other receivables | 3,588 | |||
Investments held at fair value | 178 | |||
Derivative financial instruments | 179 | |||
Cash and cash equivalents | 2,602 | |||
Total current assets other than non-current assets classified as held for sale | 12,650 | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | 12,655 | |||
Total assets | 146,342 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 26,606 | |||
Other reserves | (333) | |||
Retained earnings | 38,557 | |||
Owners of the parent | 65,444 | |||
Non-controlling interests | 244 | |||
Total equity | 65,688 | |||
Liabilities | ||||
Borrowings | 43,284 | |||
Retirement benefit liabilities | 1,665 | |||
Deferred tax liabilities | 17,776 | |||
Other provisions for liabilities | 331 | |||
Trade and other payables | 1,055 | |||
Derivative financial instruments | 214 | |||
Total non-current liabilities | 64,325 | |||
Borrowings | 4,225 | |||
Income tax payable | 853 | |||
Other provisions for liabilities | 318 | |||
Trade and other payables | 10,631 | |||
Derivative financial instruments | 302 | |||
Total current liabilities | 16,329 | |||
Total equity and liabilities | 146,342 | |||
Restatement Adjustments | ||||
Assets | ||||
Intangible assets | 117,785 | |||
Property, plant and equipment | 4,882 | |||
Investments in associates and joint ventures | 1,577 | |||
Retirement benefit assets | 1,123 | |||
Deferred tax assets | 333 | |||
Trade and other receivables | 756 | |||
Investments held at fair value | 42 | |||
Derivative financial instruments | 590 | |||
Total non-current assets | 127,088 | |||
Inventories | 5,864 | |||
Income tax receivable | 460 | |||
Trade and other receivables | 4,053 | |||
Investments held at fair value | 65 | |||
Derivative financial instruments | 228 | |||
Cash and cash equivalents | 3,291 | |||
Total current assets other than non-current assets classified as held for sale | 13,961 | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | 13,966 | |||
Total assets | 141,054 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 26,602 | |||
Other reserves | (3,392) | |||
Retained earnings | 36,935 | |||
Owners of the parent | 60,759 | |||
Non-controlling interests | 222 | |||
Total equity | 60,981 | £ 8,406 | ||
Liabilities | ||||
Borrowings | 44,027 | |||
Retirement benefit liabilities | 1,821 | |||
Deferred tax liabilities | 17,129 | |||
Other provisions for liabilities | 354 | |||
Trade and other payables | 1,058 | |||
Derivative financial instruments | 79 | |||
Total non-current liabilities | 64,468 | |||
Borrowings | 5,423 | |||
Income tax payable | 720 | |||
Other provisions for liabilities | 399 | |||
Trade and other payables | 8,908 | |||
Derivative financial instruments | 155 | |||
Total current liabilities | 15,605 | |||
Total equity and liabilities | 141,054 | |||
Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Intangible assets | 117,785 | |||
Property, plant and equipment | 4,882 | |||
Investments in associates and joint ventures | 1,577 | |||
Retirement benefit assets | 1,123 | |||
Deferred tax assets | 333 | |||
Trade and other receivables | 756 | |||
Investments held at fair value | 42 | |||
Derivative financial instruments | 590 | |||
Total non-current assets | 127,088 | |||
Inventories | 5,864 | |||
Income tax receivable | 460 | |||
Trade and other receivables | 4,053 | |||
Investments held at fair value | 65 | |||
Derivative financial instruments | 228 | |||
Cash and cash equivalents | 3,291 | |||
Total current assets other than non-current assets classified as held for sale | 13,961 | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | 13,966 | |||
Total assets | 141,054 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 26,602 | |||
Other reserves | (3,392) | |||
Retained earnings | 36,935 | |||
Owners of the parent | 60,759 | |||
Non-controlling interests | 222 | |||
Total equity | 60,981 | |||
Liabilities | ||||
Borrowings | 44,027 | |||
Retirement benefit liabilities | 1,821 | |||
Deferred tax liabilities | 17,129 | |||
Other provisions for liabilities | 354 | |||
Trade and other payables | 1,058 | |||
Derivative financial instruments | 79 | |||
Total non-current liabilities | 64,468 | |||
Borrowings | 5,423 | |||
Income tax payable | 720 | |||
Other provisions for liabilities | 399 | |||
Trade and other payables | 8,908 | |||
Derivative financial instruments | 155 | |||
Total current liabilities | 15,605 | |||
Total equity and liabilities | 141,054 | |||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | ||||
Assets | ||||
Investments in subsidiaries | 32,543 | |||
Total non-current assets | 32,543 | |||
Trade and other receivables | 7,306 | |||
Cash and cash equivalents | 6 | |||
Total current assets other than non-current assets classified as held for sale | 7,312 | |||
Total current assets | 7,312 | |||
Total assets | 39,855 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 22,854 | |||
Other reserves | 204 | |||
Retained earnings | 11,291 | |||
Owners of the parent | 34,963 | |||
Total equity | 34,963 | |||
Liabilities | ||||
Borrowings | 1,571 | |||
Other provisions for liabilities | 1 | |||
Trade and other payables | 8 | |||
Total non-current liabilities | 1,580 | |||
Borrowings | 2,062 | |||
Trade and other payables | 1,248 | |||
Derivative financial instruments | 2 | |||
Total current liabilities | 3,312 | |||
Total equity and liabilities | 39,855 | |||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | 32,543 | |||
Total non-current assets | 32,543 | |||
Trade and other receivables | 7,306 | |||
Cash and cash equivalents | 6 | |||
Total current assets other than non-current assets classified as held for sale | 7,312 | |||
Total current assets | 7,312 | |||
Total assets | 39,855 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 22,854 | |||
Other reserves | 204 | |||
Retained earnings | 11,291 | |||
Owners of the parent | 34,963 | |||
Total equity | 34,963 | |||
Liabilities | ||||
Borrowings | 1,571 | |||
Other provisions for liabilities | 1 | |||
Trade and other payables | 8 | |||
Total non-current liabilities | 1,580 | |||
Borrowings | 2,062 | |||
Trade and other payables | 1,248 | |||
Derivative financial instruments | 2 | |||
Total current liabilities | 3,312 | |||
Total equity and liabilities | 39,855 | |||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | ||||
Assets | ||||
Investments in subsidiaries | 58,255 | |||
Total non-current assets | 58,255 | |||
Trade and other receivables | 7,365 | |||
Cash and cash equivalents | 5 | |||
Total current assets other than non-current assets classified as held for sale | 7,370 | |||
Total current assets | 7,370 | |||
Total assets | 65,625 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 22,939 | |||
Other reserves | 805 | |||
Retained earnings | 36,511 | |||
Owners of the parent | 60,869 | |||
Total equity | 60,869 | |||
Liabilities | ||||
Borrowings | 1,571 | |||
Trade and other payables | 8 | |||
Total non-current liabilities | 1,579 | |||
Borrowings | 2,058 | |||
Trade and other payables | 1,119 | |||
Total current liabilities | 3,177 | |||
Total equity and liabilities | 65,625 | |||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | 58,255 | |||
Total non-current assets | 58,255 | |||
Trade and other receivables | 7,365 | |||
Cash and cash equivalents | 5 | |||
Total current assets other than non-current assets classified as held for sale | 7,370 | |||
Total current assets | 7,370 | |||
Total assets | 65,625 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 22,939 | |||
Other reserves | 805 | |||
Retained earnings | 36,511 | |||
Owners of the parent | 60,869 | |||
Total equity | 60,869 | |||
Liabilities | ||||
Borrowings | 1,571 | |||
Trade and other payables | 8 | |||
Total non-current liabilities | 1,579 | |||
Borrowings | 2,058 | |||
Trade and other payables | 1,119 | |||
Total current liabilities | 3,177 | |||
Total equity and liabilities | 65,625 | |||
Reportable Legal Entities | RJRT, Issuer (LB) | ||||
Assets | ||||
Intangible assets | 2,935 | |||
Property, plant and equipment | 763 | |||
Investments in subsidiaries | 21,368 | |||
Deferred tax assets | 521 | |||
Trade and other receivables | 5 | |||
Total non-current assets | 25,592 | |||
Inventories | 711 | |||
Trade and other receivables | 1,102 | |||
Total current assets other than non-current assets classified as held for sale | 1,813 | |||
Total current assets | 1,813 | |||
Total assets | 27,405 | |||
Equity – capital and reserves | ||||
Share capital | 14,948 | |||
Other reserves | (46) | |||
Retained earnings | 8,420 | |||
Owners of the parent | 23,322 | |||
Total equity | 23,322 | |||
Liabilities | ||||
Borrowings | 126 | |||
Retirement benefit liabilities | 853 | |||
Other provisions for liabilities | 1 | |||
Trade and other payables | 15 | |||
Total non-current liabilities | 995 | |||
Borrowings | 98 | |||
Income tax payable | 8 | |||
Other provisions for liabilities | 20 | |||
Trade and other payables | 2,962 | |||
Total current liabilities | 3,088 | |||
Total equity and liabilities | 27,405 | |||
Reportable Legal Entities | RJRT, Issuer (LB) | Restatement Adjustments | ||||
Assets | ||||
Intangible assets | 2,780 | |||
Property, plant and equipment | 677 | |||
Investments in subsidiaries | 17,217 | |||
Deferred tax assets | 320 | |||
Trade and other receivables | 23 | |||
Total non-current assets | 21,017 | |||
Inventories | 721 | |||
Cash and cash equivalents | 2 | |||
Total current assets other than non-current assets classified as held for sale | 723 | |||
Total current assets | 723 | |||
Total assets | 21,740 | |||
Equity – capital and reserves | ||||
Share capital | 14,070 | |||
Other reserves | (25) | |||
Retained earnings | 5,128 | |||
Owners of the parent | 19,173 | |||
Total equity | 19,173 | |||
Liabilities | ||||
Borrowings | 186 | |||
Retirement benefit liabilities | 926 | |||
Other provisions for liabilities | 1 | |||
Trade and other payables | 18 | |||
Total non-current liabilities | 1,131 | |||
Borrowings | 40 | |||
Income tax payable | 23 | |||
Other provisions for liabilities | 4 | |||
Trade and other payables | 1,369 | |||
Total current liabilities | 1,436 | |||
Total equity and liabilities | 21,740 | |||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | ||||
Assets | ||||
Property, plant and equipment | 1 | |||
Investments in subsidiaries | 30,625 | |||
Deferred tax assets | 17 | |||
Trade and other receivables | 464 | |||
Total non-current assets | 31,107 | |||
Trade and other receivables | 820 | |||
Total current assets other than non-current assets classified as held for sale | 820 | |||
Total current assets | 820 | |||
Total assets | 31,927 | |||
Equity – capital and reserves | ||||
Share capital | 14,348 | |||
Other reserves | (44) | |||
Retained earnings | 6,853 | |||
Owners of the parent | 21,157 | |||
Total equity | 21,157 | |||
Liabilities | ||||
Borrowings | 8,140 | |||
Retirement benefit liabilities | 53 | |||
Trade and other payables | 89 | |||
Total non-current liabilities | 8,282 | |||
Borrowings | 1,573 | |||
Income tax payable | 133 | |||
Trade and other payables | 782 | |||
Total current liabilities | 2,488 | |||
Total equity and liabilities | 31,927 | |||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | Restatement Adjustments | ||||
Assets | ||||
Property, plant and equipment | 2 | |||
Investments in subsidiaries | 29,165 | |||
Deferred tax assets | 16 | |||
Trade and other receivables | 860 | |||
Total non-current assets | 30,043 | |||
Income tax receivable | 339 | |||
Trade and other receivables | 571 | |||
Cash and cash equivalents | 2 | |||
Total current assets other than non-current assets classified as held for sale | 912 | |||
Total current assets | 912 | |||
Total assets | 30,955 | |||
Equity – capital and reserves | ||||
Share capital | 13,509 | |||
Other reserves | (24) | |||
Retained earnings | 6,276 | |||
Owners of the parent | 19,761 | |||
Total equity | 19,761 | |||
Liabilities | ||||
Borrowings | 8,212 | |||
Retirement benefit liabilities | 42 | |||
Trade and other payables | 102 | |||
Total non-current liabilities | 8,356 | |||
Borrowings | 1,009 | |||
Trade and other payables | 1,829 | |||
Total current liabilities | 2,838 | |||
Total equity and liabilities | 30,955 | |||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | ||||
Assets | ||||
Intangible assets | 7,737 | |||
Investments in subsidiaries | 19,636 | |||
Deferred tax assets | 4 | |||
Trade and other receivables | 32 | |||
Total non-current assets | 27,409 | |||
Trade and other receivables | 59 | |||
Total current assets other than non-current assets classified as held for sale | 59 | |||
Total current assets | 59 | |||
Total assets | 27,468 | |||
Equity – capital and reserves | ||||
Share capital | 22,586 | |||
Other reserves | (46) | |||
Retained earnings | 4,888 | |||
Owners of the parent | 27,428 | |||
Total equity | 27,428 | |||
Liabilities | ||||
Retirement benefit liabilities | 18 | |||
Total non-current liabilities | 18 | |||
Trade and other payables | 22 | |||
Total current liabilities | 22 | |||
Total equity and liabilities | 27,468 | |||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | Restatement Adjustments | ||||
Assets | ||||
Intangible assets | 7,284 | |||
Investments in subsidiaries | 18,972 | |||
Deferred tax assets | 4 | |||
Trade and other receivables | 42 | |||
Total non-current assets | 26,302 | |||
Trade and other receivables | 9 | |||
Total current assets other than non-current assets classified as held for sale | 9 | |||
Total current assets | 9 | |||
Total assets | 26,311 | |||
Equity – capital and reserves | ||||
Share capital | 21,260 | |||
Other reserves | (24) | |||
Retained earnings | 5,055 | |||
Owners of the parent | 26,291 | |||
Total equity | 26,291 | |||
Liabilities | ||||
Retirement benefit liabilities | 20 | |||
Total non-current liabilities | 20 | |||
Total equity and liabilities | 26,311 | |||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | ||||
Assets | ||||
Intangible assets | 113,342 | |||
Property, plant and equipment | 4,402 | |||
Investments in associates and joint ventures | 1,737 | |||
Retirement benefit assets | 1,147 | |||
Deferred tax assets | (198) | |||
Trade and other receivables | 762 | |||
Investments held at fair value | 39 | |||
Derivative financial instruments | 556 | |||
Total non-current assets | 121,787 | |||
Inventories | 5,319 | |||
Income tax receivable | 74 | |||
Trade and other receivables | 4,431 | |||
Investments held at fair value | 178 | |||
Derivative financial instruments | 179 | |||
Cash and cash equivalents | 2,602 | |||
Total current assets other than non-current assets classified as held for sale | 12,783 | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | 12,788 | |||
Total assets | 134,575 | |||
Equity – capital and reserves | ||||
Share capital | 1,921 | |||
Share premium, capital redemption and merger reserves | 28,755 | |||
Other reserves | (335) | |||
Retained earnings | 36,974 | |||
Owners of the parent | 67,315 | |||
Non-controlling interests | 244 | |||
Total equity | 67,559 | |||
Liabilities | ||||
Borrowings | 35,018 | |||
Retirement benefit liabilities | 741 | |||
Deferred tax liabilities | 17,776 | |||
Other provisions for liabilities | 330 | |||
Trade and other payables | 1,529 | |||
Derivative financial instruments | 214 | |||
Total non-current liabilities | 55,608 | |||
Borrowings | 3,497 | |||
Income tax payable | 712 | |||
Other provisions for liabilities | 298 | |||
Trade and other payables | 6,599 | |||
Derivative financial instruments | 302 | |||
Total current liabilities | 11,408 | |||
Total equity and liabilities | 134,575 | |||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Registered BATCAP bonds | ||||
Assets | ||||
Intangible assets | 124,013 | |||
Property, plant and equipment | 5,165 | |||
Investments in associates and joint ventures | 1,737 | |||
Retirement benefit assets | 1,132 | |||
Deferred tax assets | 253 | |||
Trade and other receivables | (38,343) | |||
Investments held at fair value | 39 | |||
Derivative financial instruments | (7) | |||
Total non-current assets | 93,989 | |||
Inventories | 6,029 | |||
Income tax receivable | 74 | |||
Trade and other receivables | (13,626) | |||
Investments held at fair value | 178 | |||
Derivative financial instruments | (215) | |||
Cash and cash equivalents | 2,537 | |||
Total current assets other than non-current assets classified as held for sale | (5,023) | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | (5,018) | |||
Total assets | 88,971 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 33,562 | |||
Other reserves | (333) | |||
Retained earnings | 38,557 | |||
Owners of the parent | 72,400 | |||
Non-controlling interests | 244 | |||
Total equity | 72,644 | |||
Liabilities | ||||
Borrowings | (1,422) | |||
Retirement benefit liabilities | 1,612 | |||
Deferred tax liabilities | 17,742 | |||
Other provisions for liabilities | 331 | |||
Trade and other payables | 962 | |||
Derivative financial instruments | (3) | |||
Total non-current liabilities | 19,222 | |||
Borrowings | (12,519) | |||
Income tax payable | 718 | |||
Other provisions for liabilities | 318 | |||
Trade and other payables | 8,677 | |||
Derivative financial instruments | (89) | |||
Total current liabilities | (2,895) | |||
Total equity and liabilities | 88,971 | |||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Restatement Adjustments | ||||
Assets | ||||
Intangible assets | 107,722 | |||
Property, plant and equipment | 4,203 | |||
Investments in associates and joint ventures | 1,577 | |||
Retirement benefit assets | 1,123 | |||
Deferred tax assets | (7) | |||
Trade and other receivables | 826 | |||
Investments held at fair value | 42 | |||
Derivative financial instruments | 590 | |||
Total non-current assets | 116,076 | |||
Inventories | 5,144 | |||
Income tax receivable | 121 | |||
Trade and other receivables | 5,725 | |||
Investments held at fair value | 65 | |||
Derivative financial instruments | 228 | |||
Cash and cash equivalents | 3,287 | |||
Total current assets other than non-current assets classified as held for sale | 14,570 | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | 14,575 | |||
Total assets | 130,651 | |||
Equity – capital and reserves | ||||
Share capital | 1,297 | |||
Share premium, capital redemption and merger reserves | 26,602 | |||
Other reserves | (3,392) | |||
Retained earnings | 37,434 | |||
Owners of the parent | 61,941 | |||
Non-controlling interests | 222 | |||
Total equity | 62,163 | |||
Liabilities | ||||
Borrowings | 35,629 | |||
Retirement benefit liabilities | 833 | |||
Deferred tax liabilities | 17,129 | |||
Other provisions for liabilities | 353 | |||
Trade and other payables | 1,933 | |||
Derivative financial instruments | 79 | |||
Total non-current liabilities | 55,956 | |||
Borrowings | 4,374 | |||
Income tax payable | 697 | |||
Other provisions for liabilities | 395 | |||
Trade and other payables | 6,911 | |||
Derivative financial instruments | 155 | |||
Total current liabilities | 12,532 | |||
Total equity and liabilities | 130,651 | |||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Intangible assets | 117,785 | |||
Property, plant and equipment | 4,880 | |||
Investments in associates and joint ventures | 1,577 | |||
Retirement benefit assets | 1,071 | |||
Deferred tax assets | 268 | |||
Trade and other receivables | (27,699) | |||
Investments held at fair value | 42 | |||
Derivative financial instruments | (4) | |||
Total non-current assets | 97,920 | |||
Inventories | 5,864 | |||
Income tax receivable | 121 | |||
Trade and other receivables | (25,490) | |||
Investments held at fair value | 65 | |||
Derivative financial instruments | (111) | |||
Cash and cash equivalents | 2,417 | |||
Total current assets other than non-current assets classified as held for sale | (17,134) | |||
Assets classified as held-for-sale | 5 | |||
Total current assets | (17,129) | |||
Total assets | 80,791 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 22,943 | |||
Other reserves | (3,427) | |||
Retained earnings | 46,032 | |||
Owners of the parent | 66,162 | |||
Non-controlling interests | 222 | |||
Total equity | 66,384 | |||
Liabilities | ||||
Borrowings | (1,364) | |||
Retirement benefit liabilities | 1,779 | |||
Deferred tax liabilities | 17,078 | |||
Other provisions for liabilities | 354 | |||
Trade and other payables | 952 | |||
Derivative financial instruments | (11) | |||
Total non-current liabilities | 18,788 | |||
Borrowings | (11,408) | |||
Income tax payable | 711 | |||
Other provisions for liabilities | 398 | |||
Trade and other payables | 6,049 | |||
Derivative financial instruments | (131) | |||
Total current liabilities | (4,381) | |||
Total equity and liabilities | 80,791 | |||
Reportable Legal Entities | BATCAP, Issuer | Registered BATCAP bonds | ||||
Assets | ||||
Deferred tax assets | 74 | |||
Trade and other receivables | 15,707 | |||
Total non-current assets | 15,781 | |||
Trade and other receivables | 2,567 | |||
Cash and cash equivalents | 9 | |||
Total current assets other than non-current assets classified as held for sale | 2,576 | |||
Total current assets | 2,576 | |||
Total assets | 18,357 | |||
Equity – capital and reserves | ||||
Share premium, capital redemption and merger reserves | 30 | |||
Other reserves | (195) | |||
Retained earnings | 105 | |||
Owners of the parent | (60) | |||
Total equity | (60) | |||
Liabilities | ||||
Borrowings | 15,599 | |||
Derivative financial instruments | 145 | |||
Total non-current liabilities | 15,744 | |||
Borrowings | 2,637 | |||
Income tax payable | 2 | |||
Trade and other payables | 25 | |||
Derivative financial instruments | 9 | |||
Total current liabilities | 2,673 | |||
Total equity and liabilities | 18,357 | |||
Reportable Legal Entities | BATCAP, Issuer | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Deferred tax assets | 49 | |||
Trade and other receivables | 14,787 | |||
Derivative financial instruments | 68 | |||
Total non-current assets | 14,904 | |||
Trade and other receivables | 56 | |||
Cash and cash equivalents | 122 | |||
Total current assets other than non-current assets classified as held for sale | 178 | |||
Total current assets | 178 | |||
Total assets | 15,082 | |||
Equity – capital and reserves | ||||
Share premium, capital redemption and merger reserves | 258 | |||
Other reserves | (129) | |||
Retained earnings | (52) | |||
Owners of the parent | 77 | |||
Total equity | 77 | |||
Liabilities | ||||
Borrowings | 14,783 | |||
Total non-current liabilities | 14,783 | |||
Borrowings | 160 | |||
Income tax payable | 2 | |||
Trade and other payables | 54 | |||
Derivative financial instruments | 6 | |||
Total current liabilities | 222 | |||
Total equity and liabilities | 15,082 | |||
Reportable Legal Entities | BATIF | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | 718 | |||
Trade and other receivables | 21,911 | |||
Derivative financial instruments | 708 | |||
Total non-current assets | 23,337 | |||
Trade and other receivables | 19,576 | |||
Derivative financial instruments | 405 | |||
Cash and cash equivalents | 56 | |||
Total current assets other than non-current assets classified as held for sale | 20,037 | |||
Total current assets | 20,037 | |||
Total assets | 43,374 | |||
Equity – capital and reserves | ||||
Share capital | 231 | |||
Other reserves | (1,091) | |||
Retained earnings | 2,841 | |||
Owners of the parent | 1,981 | |||
Total equity | 1,981 | |||
Liabilities | ||||
Borrowings | 18,450 | |||
Deferred tax liabilities | 30 | |||
Trade and other payables | 4 | |||
Derivative financial instruments | 217 | |||
Total non-current liabilities | 18,701 | |||
Borrowings | 22,293 | |||
Trade and other payables | 30 | |||
Derivative financial instruments | 369 | |||
Total current liabilities | 22,692 | |||
Total equity and liabilities | 43,374 | |||
Reportable Legal Entities | BATIF | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | 718 | |||
Trade and other receivables | 12,333 | |||
Derivative financial instruments | 594 | |||
Total non-current assets | 13,645 | |||
Trade and other receivables | 30,789 | |||
Derivative financial instruments | 339 | |||
Cash and cash equivalents | 750 | |||
Total current assets other than non-current assets classified as held for sale | 31,878 | |||
Total current assets | 31,878 | |||
Total assets | 45,523 | |||
Equity – capital and reserves | ||||
Share capital | 231 | |||
Other reserves | (1,106) | |||
Retained earnings | 2,741 | |||
Owners of the parent | 1,866 | |||
Total equity | 1,866 | |||
Liabilities | ||||
Borrowings | 19,873 | |||
Deferred tax liabilities | 38 | |||
Trade and other payables | 4 | |||
Derivative financial instruments | 158 | |||
Total non-current liabilities | 20,073 | |||
Borrowings | 23,290 | |||
Trade and other payables | 8 | |||
Derivative financial instruments | 286 | |||
Total current liabilities | 23,584 | |||
Total equity and liabilities | 45,523 | |||
Reportable Legal Entities | BATHTN | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | 3,732 | |||
Retirement benefit assets | 15 | |||
Total non-current assets | 3,747 | |||
Trade and other receivables | 15 | |||
Total current assets other than non-current assets classified as held for sale | 15 | |||
Total current assets | 15 | |||
Total assets | 3,762 | |||
Equity – capital and reserves | ||||
Share capital | 91 | |||
Share premium, capital redemption and merger reserves | 3,401 | |||
Other reserves | 363 | |||
Retained earnings | (100) | |||
Owners of the parent | 3,755 | |||
Total equity | 3,755 | |||
Liabilities | ||||
Deferred tax liabilities | 4 | |||
Total non-current liabilities | 4 | |||
Borrowings | 1 | |||
Trade and other payables | 2 | |||
Total current liabilities | 3 | |||
Total equity and liabilities | 3,762 | |||
Reportable Legal Entities | BATHTN | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | 3,687 | |||
Retirement benefit assets | 52 | |||
Total non-current assets | 3,739 | |||
Trade and other receivables | 24 | |||
Total current assets other than non-current assets classified as held for sale | 24 | |||
Total current assets | 24 | |||
Total assets | 3,763 | |||
Equity – capital and reserves | ||||
Share capital | 91 | |||
Share premium, capital redemption and merger reserves | 3,401 | |||
Other reserves | 322 | |||
Retained earnings | (75) | |||
Owners of the parent | 3,739 | |||
Total equity | 3,739 | |||
Liabilities | ||||
Deferred tax liabilities | 13 | |||
Total non-current liabilities | 13 | |||
Borrowings | 1 | |||
Income tax payable | 7 | |||
Other provisions for liabilities | 1 | |||
Trade and other payables | 2 | |||
Total current liabilities | 11 | |||
Total equity and liabilities | 3,763 | |||
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Registered BATCAP bonds | ||||
Assets | ||||
Property, plant and equipment | 1 | |||
Investments in subsidiaries | 30,625 | |||
Deferred tax assets | 17 | |||
Trade and other receivables | 464 | |||
Total non-current assets | 31,107 | |||
Trade and other receivables | 820 | |||
Total current assets other than non-current assets classified as held for sale | 820 | |||
Total current assets | 820 | |||
Total assets | 31,927 | |||
Equity – capital and reserves | ||||
Share capital | 14,348 | |||
Other reserves | (44) | |||
Retained earnings | 6,853 | |||
Owners of the parent | 21,157 | |||
Total equity | 21,157 | |||
Liabilities | ||||
Borrowings | 8,140 | |||
Retirement benefit liabilities | 53 | |||
Trade and other payables | 89 | |||
Total non-current liabilities | 8,282 | |||
Borrowings | 1,573 | |||
Income tax payable | 133 | |||
Trade and other payables | 782 | |||
Total current liabilities | 2,488 | |||
Total equity and liabilities | 31,927 | |||
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Property, plant and equipment | 2 | |||
Investments in subsidiaries | 29,165 | |||
Deferred tax assets | 16 | |||
Trade and other receivables | 860 | |||
Total non-current assets | 30,043 | |||
Income tax receivable | 339 | |||
Trade and other receivables | 569 | |||
Cash and cash equivalents | 2 | |||
Total current assets other than non-current assets classified as held for sale | 910 | |||
Total current assets | 910 | |||
Total assets | 30,953 | |||
Equity – capital and reserves | ||||
Share capital | 13,509 | |||
Other reserves | (25) | |||
Retained earnings | 6,275 | |||
Owners of the parent | 19,759 | |||
Total equity | 19,759 | |||
Liabilities | ||||
Borrowings | 8,212 | |||
Retirement benefit liabilities | 42 | |||
Trade and other payables | 102 | |||
Total non-current liabilities | 8,356 | |||
Borrowings | 1,009 | |||
Trade and other payables | 1,829 | |||
Total current liabilities | 2,838 | |||
Total equity and liabilities | 30,953 | |||
Eliminations | ||||
Assets | ||||
Intangible assets | (1) | |||
Investments in subsidiaries | (104,172) | |||
Trade and other receivables | (578) | |||
Total non-current assets | (104,751) | |||
Inventories | (1) | |||
Trade and other receivables | (10,130) | |||
Cash and cash equivalents | (6) | |||
Total current assets other than non-current assets classified as held for sale | (10,137) | |||
Total current assets | (10,137) | |||
Total assets | (114,888) | |||
Equity – capital and reserves | ||||
Share capital | (53,803) | |||
Share premium, capital redemption and merger reserves | (25,003) | |||
Other reserves | (66) | |||
Retained earnings | (29,869) | |||
Owners of the parent | (108,741) | |||
Total equity | (108,741) | |||
Liabilities | ||||
Borrowings | (1,571) | |||
Other provisions for liabilities | (1) | |||
Trade and other payables | (586) | |||
Total non-current liabilities | (2,158) | |||
Borrowings | (3,005) | |||
Trade and other payables | (982) | |||
Derivative financial instruments | (2) | |||
Total current liabilities | (3,989) | |||
Total equity and liabilities | (114,888) | |||
Eliminations | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | (67,618) | |||
Trade and other receivables | 946 | |||
Derivative financial instruments | (145) | |||
Total non-current assets | (66,817) | |||
Trade and other receivables | (13,070) | |||
Derivative financial instruments | (11) | |||
Cash and cash equivalents | (6) | |||
Total current assets other than non-current assets classified as held for sale | (13,087) | |||
Total current assets | (13,087) | |||
Total assets | (79,904) | |||
Equity – capital and reserves | ||||
Share capital | (15,284) | |||
Share premium, capital redemption and merger reserves | (33,241) | |||
Other reserves | 763 | |||
Retained earnings | (20,990) | |||
Owners of the parent | (68,752) | |||
Total equity | (68,752) | |||
Liabilities | ||||
Borrowings | 946 | |||
Other provisions for liabilities | (1) | |||
Trade and other payables | (8) | |||
Derivative financial instruments | (145) | |||
Total non-current liabilities | 792 | |||
Borrowings | (11,822) | |||
Trade and other payables | (133) | |||
Derivative financial instruments | 11 | |||
Total current liabilities | (11,944) | |||
Total equity and liabilities | £ (79,904) | |||
Eliminations | Restatement Adjustments | ||||
Assets | ||||
Intangible assets | (1) | |||
Investments in subsidiaries | (123,609) | |||
Trade and other receivables | (995) | |||
Total non-current assets | (124,605) | |||
Inventories | (1) | |||
Trade and other receivables | (9,617) | |||
Cash and cash equivalents | (5) | |||
Total current assets other than non-current assets classified as held for sale | (9,623) | |||
Total current assets | (9,623) | |||
Total assets | (134,228) | |||
Equity – capital and reserves | ||||
Share capital | (50,136) | |||
Share premium, capital redemption and merger reserves | (22,939) | |||
Other reserves | (732) | |||
Retained earnings | (53,469) | |||
Owners of the parent | (127,276) | |||
Total equity | (127,276) | |||
Liabilities | ||||
Borrowings | (1,571) | |||
Trade and other payables | (1,003) | |||
Total non-current liabilities | (2,574) | |||
Borrowings | (2,058) | |||
Trade and other payables | (2,320) | |||
Total current liabilities | (4,378) | |||
Total equity and liabilities | (134,228) | |||
Eliminations | Restatement Adjustments | Registered BATCAP bonds | ||||
Assets | ||||
Investments in subsidiaries | (91,825) | |||
Trade and other receivables | 475 | |||
Derivative financial instruments | (68) | |||
Total non-current assets | (91,418) | |||
Trade and other receivables | (9,260) | |||
Cash and cash equivalents | (5) | |||
Total current assets other than non-current assets classified as held for sale | (9,265) | |||
Total current assets | (9,265) | |||
Total assets | (100,683) | |||
Equity – capital and reserves | ||||
Share capital | (14,445) | |||
Share premium, capital redemption and merger reserves | (22,939) | |||
Other reserves | 168 | |||
Retained earnings | (54,497) | |||
Owners of the parent | (91,713) | |||
Total equity | (91,713) | |||
Liabilities | ||||
Borrowings | 952 | |||
Trade and other payables | (8) | |||
Derivative financial instruments | (68) | |||
Total non-current liabilities | 876 | |||
Borrowings | (9,687) | |||
Trade and other payables | (153) | |||
Derivative financial instruments | (6) | |||
Total current liabilities | (9,846) | |||
Total equity and liabilities | £ (100,683) |
Condensed consolidating finan_7
Condensed consolidating financial information - Condensed Consolidated Cash Flow Statement (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | £ 10,295 | £ 4,610 | |
Net cash generated from/(used in) investing activities | (1,021) | (640) | |
Net cash (used in)/generated from financing activities | (9,630) | (4,229) | |
Net cash flows generated (used in)/from operating, investing and financing activities | (356) | (259) | |
Differences on exchange | (138) | 180 | |
(Decrease)/increase in net cash and cash equivalents in the year | (494) | (79) | |
Net cash and cash equivalents at 1 January | £ 1,651 | 1,730 | |
Net cash and cash equivalents at 31 December | 2,328 | 2,822 | 1,651 |
Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 10,295 | 4,610 | |
Net cash generated from/(used in) investing activities | (1,021) | (640) | |
Net cash (used in)/generated from financing activities | (9,630) | (4,229) | |
Net cash flows generated (used in)/from operating, investing and financing activities | (356) | (259) | |
Differences on exchange | (138) | 180 | |
(Decrease)/increase in net cash and cash equivalents in the year | (494) | (79) | |
Net cash and cash equivalents at 1 January | 1,651 | 1,730 | |
Net cash and cash equivalents at 31 December | 2,328 | 1,651 | |
Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 5,347 | ||
Net cash generated from/(used in) investing activities | (18,544) | ||
Net cash (used in)/generated from financing activities | 14,759 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 1,562 | ||
Differences on exchange | (391) | ||
(Decrease)/increase in net cash and cash equivalents in the year | 1,171 | ||
Net cash and cash equivalents at 1 January | 2,822 | ||
Net cash and cash equivalents at 31 December | 2,822 | ||
Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 5,347 | ||
Net cash generated from/(used in) investing activities | (18,544) | ||
Net cash (used in)/generated from financing activities | 14,759 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 1,562 | ||
Differences on exchange | (391) | ||
(Decrease)/increase in net cash and cash equivalents in the year | 1,171 | ||
Net cash and cash equivalents at 1 January | 2,822 | ||
Net cash and cash equivalents at 31 December | 2,822 | ||
Reportable Legal Entities | BAT p.l.c., Parent guarantor | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (45) | (23) | |
Net cash generated from/(used in) investing activities | 187 | 24 | |
Net cash (used in)/generated from financing activities | (140) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 2 | 1 | |
Differences on exchange | (1) | 1 | |
(Decrease)/increase in net cash and cash equivalents in the year | 1 | 2 | |
Net cash and cash equivalents at 1 January | 5 | 3 | |
Net cash and cash equivalents at 31 December | 6 | 5 | |
Reportable Legal Entities | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (45) | (23) | |
Net cash generated from/(used in) investing activities | 187 | 24 | |
Net cash (used in)/generated from financing activities | (140) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 2 | 1 | |
Differences on exchange | (1) | 1 | |
(Decrease)/increase in net cash and cash equivalents in the year | 1 | 2 | |
Net cash and cash equivalents at 1 January | 5 | 3 | |
Net cash and cash equivalents at 31 December | 6 | 5 | |
Reportable Legal Entities | RJRT, Issuer (LB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 1,670 | ||
Net cash generated from/(used in) investing activities | 3,039 | ||
Net cash (used in)/generated from financing activities | (4,711) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | (2) | ||
(Decrease)/increase in net cash and cash equivalents in the year | (2) | ||
Reportable Legal Entities | RAI, Issuer (RB), Subsidiary guarantor (LB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 349 | ||
Net cash generated from/(used in) investing activities | 4,280 | ||
Net cash (used in)/generated from financing activities | (4,631) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | (2) | ||
(Decrease)/increase in net cash and cash equivalents in the year | (2) | ||
Reportable Legal Entities | RJRTH, Subsidiary guarantor (LB & RB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (7) | ||
Net cash generated from/(used in) investing activities | 3,366 | ||
Net cash (used in)/generated from financing activities | (3,359) | ||
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 8,249 | 4,610 | |
Net cash generated from/(used in) investing activities | (877) | (571) | |
Net cash (used in)/generated from financing activities | (11,391) | 1,746 | |
Net cash flows generated (used in)/from operating, investing and financing activities | (4,019) | 5,785 | |
Differences on exchange | (138) | 179 | |
(Decrease)/increase in net cash and cash equivalents in the year | (4,157) | 5,964 | |
Net cash and cash equivalents at 1 January | 1,646 | 1,727 | |
Net cash and cash equivalents at 31 December | (1,344) | 7,691 | |
Reportable Legal Entities | All other companies, Non-guarantor subsidiaries | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 10,025 | 4,598 | |
Net cash generated from/(used in) investing activities | (6,853) | (3,788) | |
Net cash (used in)/generated from financing activities | (3,663) | 2,486 | |
Net cash flows generated (used in)/from operating, investing and financing activities | (491) | 3,296 | |
Differences on exchange | (173) | 221 | |
(Decrease)/increase in net cash and cash equivalents in the year | (664) | 3,517 | |
Net cash and cash equivalents at 1 January | 1,702 | 1,466 | |
Net cash and cash equivalents at 31 December | 1,471 | 4,983 | |
Reportable Legal Entities | BATCAP, Issuer | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (81) | ||
Net cash generated from/(used in) investing activities | 946 | ||
Net cash (used in)/generated from financing activities | (980) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | (115) | ||
Differences on exchange | 2 | ||
(Decrease)/increase in net cash and cash equivalents in the year | (113) | ||
Net cash and cash equivalents at 31 December | 9 | ||
Reportable Legal Entities | BATIF | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 19 | (8) | |
Net cash generated from/(used in) investing activities | 709 | 406 | |
Net cash (used in)/generated from financing activities | (1,355) | 2,073 | |
Net cash flows generated (used in)/from operating, investing and financing activities | (627) | 2,471 | |
Differences on exchange | 34 | (42) | |
(Decrease)/increase in net cash and cash equivalents in the year | (593) | 2,429 | |
Net cash and cash equivalents at 1 January | (56) | 261 | |
Net cash and cash equivalents at 31 December | (35) | 2,690 | |
Reportable Legal Entities | BATNF and RAI, Subsidiary guarantors | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 349 | ||
Net cash generated from/(used in) investing activities | 4,280 | ||
Net cash (used in)/generated from financing activities | (4,631) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | (2) | ||
(Decrease)/increase in net cash and cash equivalents in the year | (2) | ||
Reportable Legal Entities | BATHTN | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (13) | 20 | |
Net cash generated from/(used in) investing activities | 2 | 2,811 | |
Net cash (used in)/generated from financing activities | 11 | (2,813) | |
Net cash flows generated (used in)/from operating, investing and financing activities | 18 | ||
(Decrease)/increase in net cash and cash equivalents in the year | 18 | ||
Net cash and cash equivalents at 31 December | 18 | ||
Reportable Legal Entities | Restatement Adjustments | BAT p.l.c., Parent guarantor | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (12) | ||
Net cash generated from/(used in) investing activities | 2 | ||
Net cash (used in)/generated from financing activities | 10 | ||
Net cash and cash equivalents at 1 January | 5 | ||
Net cash and cash equivalents at 31 December | 5 | ||
Reportable Legal Entities | Restatement Adjustments | BAT p.l.c., Parent guarantor | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (12) | ||
Net cash generated from/(used in) investing activities | 2 | ||
Net cash (used in)/generated from financing activities | 10 | ||
Net cash and cash equivalents at 1 January | 5 | ||
Net cash and cash equivalents at 31 December | 5 | ||
Reportable Legal Entities | Restatement Adjustments | RJRT, Issuer (LB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (1,860) | ||
Net cash generated from/(used in) investing activities | (88) | ||
Net cash (used in)/generated from financing activities | 1,950 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 2 | ||
(Decrease)/increase in net cash and cash equivalents in the year | 2 | ||
Net cash and cash equivalents at 1 January | 2 | ||
Net cash and cash equivalents at 31 December | 2 | ||
Reportable Legal Entities | Restatement Adjustments | RAI, Issuer (RB), Subsidiary guarantor (LB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (270) | ||
Net cash generated from/(used in) investing activities | 1,116 | ||
Net cash (used in)/generated from financing activities | (844) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 2 | ||
(Decrease)/increase in net cash and cash equivalents in the year | 2 | ||
Net cash and cash equivalents at 1 January | 2 | ||
Net cash and cash equivalents at 31 December | 2 | ||
Reportable Legal Entities | Restatement Adjustments | RJRTH, Subsidiary guarantor (LB & RB) | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (11) | ||
Net cash generated from/(used in) investing activities | 1 | ||
Net cash (used in)/generated from financing activities | 10 | ||
Reportable Legal Entities | Restatement Adjustments | All other companies, Non-guarantor subsidiaries | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 7,488 | ||
Net cash generated from/(used in) investing activities | (19,512) | ||
Net cash (used in)/generated from financing activities | 21,030 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 9,006 | ||
Differences on exchange | (391) | ||
(Decrease)/increase in net cash and cash equivalents in the year | 8,615 | ||
Net cash and cash equivalents at 1 January | 2,813 | ||
Net cash and cash equivalents at 31 December | 10,261 | ||
Reportable Legal Entities | Restatement Adjustments | All other companies, Non-guarantor subsidiaries | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 5,470 | ||
Net cash generated from/(used in) investing activities | (20,020) | ||
Net cash (used in)/generated from financing activities | 22,772 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 8,222 | ||
Differences on exchange | (400) | ||
(Decrease)/increase in net cash and cash equivalents in the year | 7,822 | ||
Net cash and cash equivalents at 1 January | 2,135 | ||
Net cash and cash equivalents at 31 December | 9,524 | ||
Reportable Legal Entities | Restatement Adjustments | BATCAP, Issuer | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 67 | ||
Net cash generated from/(used in) investing activities | 113 | ||
Net cash (used in)/generated from financing activities | (52) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 128 | ||
Differences on exchange | (6) | ||
(Decrease)/increase in net cash and cash equivalents in the year | 122 | ||
Net cash and cash equivalents at 1 January | 122 | ||
Net cash and cash equivalents at 31 December | 122 | ||
Reportable Legal Entities | Restatement Adjustments | BATIF | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 10 | ||
Net cash generated from/(used in) investing activities | 350 | ||
Net cash (used in)/generated from financing activities | 237 | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 597 | ||
Differences on exchange | 15 | ||
(Decrease)/increase in net cash and cash equivalents in the year | 612 | ||
Net cash and cash equivalents at 1 January | 558 | ||
Net cash and cash equivalents at 31 December | 556 | ||
Reportable Legal Entities | Restatement Adjustments | BATNF and RAI, Subsidiary guarantors | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | (270) | ||
Net cash generated from/(used in) investing activities | 1,116 | ||
Net cash (used in)/generated from financing activities | (844) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | 2 | ||
(Decrease)/increase in net cash and cash equivalents in the year | 2 | ||
Net cash and cash equivalents at 1 January | 2 | ||
Net cash and cash equivalents at 31 December | 2 | ||
Reportable Legal Entities | Restatement Adjustments | BATHTN | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 69 | ||
Net cash (used in)/generated from financing activities | (69) | ||
Eliminations | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 79 | 23 | |
Net cash generated from/(used in) investing activities | (11,016) | (93) | |
Net cash (used in)/generated from financing activities | 14,602 | (5,975) | |
Net cash flows generated (used in)/from operating, investing and financing activities | 3,665 | (6,045) | |
Differences on exchange | 1 | ||
(Decrease)/increase in net cash and cash equivalents in the year | 3,666 | (6,045) | |
Net cash and cash equivalents at 31 December | 3,666 | (6,045) | |
Eliminations | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 41 | 23 | |
Net cash generated from/(used in) investing activities | (292) | (93) | |
Net cash (used in)/generated from financing activities | 1,128 | (5,975) | |
Net cash flows generated (used in)/from operating, investing and financing activities | 877 | (6,045) | |
(Decrease)/increase in net cash and cash equivalents in the year | 877 | (6,045) | |
Net cash and cash equivalents at 31 December | £ 877 | £ (6,045) | |
Eliminations | Restatement Adjustments | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 12 | ||
Net cash generated from/(used in) investing activities | (63) | ||
Net cash (used in)/generated from financing activities | (7,397) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | (7,448) | ||
(Decrease)/increase in net cash and cash equivalents in the year | (7,448) | ||
Net cash and cash equivalents at 31 December | (7,448) | ||
Eliminations | Restatement Adjustments | Registered BATCAP bonds | |||
Disclosure Of Condensed Consolidating Financial Information [Line Items] | |||
Net cash (used in)/generated from operating activities | 13 | ||
Net cash generated from/(used in) investing activities | (105) | ||
Net cash (used in)/generated from financing activities | (7,295) | ||
Net cash flows generated (used in)/from operating, investing and financing activities | (7,387) | ||
(Decrease)/increase in net cash and cash equivalents in the year | (7,387) | ||
Net cash and cash equivalents at 31 December | £ (7,387) |
Accounting Policy Changes and_3
Accounting Policy Changes and Regional Restructure - Additional Information (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adoption Of IFRS 9 | |||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |||
Impairment of financial assets | £ 38 | ||
I F R S16 | |||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 5.76% | ||
Trade Debtors | |||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |||
Decrease in trade receivable | £ 45 | ||
IFRS 15 Revenue | |||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |||
Decrease in revenue | £ 664 | £ 621 | |
IFRS 15 Revenue | Timing of Recognition of Certain Payments to Indirect Customers | |||
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |||
Decrease in revenue | £ 64 | £ 0 |
Accounting Policy Changes and_4
Accounting Policy Changes and Regional Restructure - Summary of Implementation of IFRS 15 (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Non-current assets | ||||
Deferred tax assets | £ 344 | £ 333 | ||
Trade and other receivables | 685 | 756 | ||
Investments held at fair value | 39 | |||
Total non-current assets | 133,687 | |||
Current assets | ||||
Trade and other receivables | 3,588 | 4,053 | ||
Total current assets | 12,655 | |||
Total assets | 146,342 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 26,606 | |||
Other reserves | (333) | |||
Retained earnings | 38,557 | |||
Owners of the parent | 65,444 | |||
Non-controlling interests | 244 | |||
Total equity | 65,688 | 60,981 | £ 8,406 | £ 5,032 |
Non-current liabilities | ||||
Total non-current liabilities | 64,325 | |||
Current liabilities | ||||
Trade and other payables | 10,631 | |||
Total current liabilities | 16,329 | |||
Total equity and liabilities | 146,342 | |||
Impact of IFRS 15 | ||||
Non-current assets | ||||
Deferred tax assets | 340 | 333 | ||
Trade and other receivables | 754 | 756 | ||
Investments held at fair value | 44 | 42 | ||
Other | 125,957 | 125,957 | ||
Total non-current assets | 127,095 | 127,088 | ||
Current assets | ||||
Trade and other receivables | 3,864 | 4,053 | ||
Investments held at fair value | 209 | 65 | ||
Other | 9,848 | 9,848 | ||
Total current assets | 13,921 | 13,966 | ||
Total assets | 141,016 | 141,054 | ||
Equity – capital and reserves | ||||
Share capital | 614 | 614 | ||
Share premium, capital redemption and merger reserves | 26,602 | 26,602 | ||
Other reserves | (3,401) | (3,392) | ||
Retained earnings | 36,906 | 36,935 | ||
Owners of the parent | 60,721 | 60,759 | ||
Non-controlling interests | 222 | 222 | ||
Total equity | 60,943 | 60,981 | ||
Non-current liabilities | ||||
Other | 64,468 | 64,468 | ||
Total non-current liabilities | 64,468 | 64,468 | ||
Current liabilities | ||||
Trade and other payables | 8,908 | 8,908 | ||
Other | 6,697 | 6,697 | ||
Total current liabilities | 15,605 | 15,605 | ||
Total equity and liabilities | 141,016 | 141,054 | ||
Impact of IFRS 15 | Reported [Member] | ||||
Non-current assets | ||||
Deferred tax assets | 317 | |||
Trade and other receivables | 756 | |||
Investments held at fair value | 42 | |||
Other | 125,957 | |||
Total non-current assets | 127,072 | |||
Current assets | ||||
Trade and other receivables | 4,053 | |||
Investments held at fair value | 65 | |||
Other | 9,848 | |||
Total current assets | 13,966 | |||
Total assets | 141,038 | |||
Equity – capital and reserves | ||||
Share capital | 614 | |||
Share premium, capital redemption and merger reserves | 26,602 | |||
Other reserves | (3,395) | |||
Retained earnings | 36,983 | |||
Owners of the parent | 60,804 | |||
Non-controlling interests | 222 | |||
Total equity | 61,026 | |||
Non-current liabilities | ||||
Other | 64,468 | |||
Total non-current liabilities | 64,468 | |||
Current liabilities | ||||
Trade and other payables | 8,847 | |||
Other | 6,697 | |||
Total current liabilities | 15,544 | |||
Total equity and liabilities | 141,038 | |||
Impact of IFRS 15 | IFRS 15 Revenue | ||||
Non-current assets | ||||
Deferred tax assets | 16 | |||
Total non-current assets | 16 | |||
Current assets | ||||
Total assets | 16 | |||
Equity – capital and reserves | ||||
Other reserves | 3 | |||
Retained earnings | (48) | |||
Owners of the parent | (45) | |||
Total equity | (45) | |||
Current liabilities | ||||
Trade and other payables | 61 | |||
Total current liabilities | 61 | |||
Total equity and liabilities | £ 16 | |||
Impact of IFRS 15 | Impact of IFRS 9, Financial Assets Reclass [Member] | ||||
Non-current assets | ||||
Trade and other receivables | (2) | |||
Investments held at fair value | 2 | |||
Current assets | ||||
Trade and other receivables | (144) | |||
Investments held at fair value | 144 | |||
Equity – capital and reserves | ||||
Other reserves | (9) | |||
Retained earnings | 9 | |||
Impact of IFRS 15 | Impact of IFRS 9, Expected Loss Impairment [Member] | ||||
Non-current assets | ||||
Deferred tax assets | 7 | |||
Total non-current assets | 7 | |||
Current assets | ||||
Trade and other receivables | (45) | |||
Total current assets | (45) | |||
Total assets | (38) | |||
Equity – capital and reserves | ||||
Retained earnings | (38) | |||
Owners of the parent | (38) | |||
Total equity | (38) | |||
Current liabilities | ||||
Total equity and liabilities | £ (38) |
Accounting Policy Changes and_5
Accounting Policy Changes and Regional Restructure - Summary of Implementation of IFRS 16 (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Minimum lease payments | £ 690 |
I F R S16 | |
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items] | |
Additional commitments on the exercise of options | 28 |
Low value leases and short-term leases excluded | (24) |
Discounted to present value | (132) |
To be capitalised as lease liabilities at 1 January 2019 | 562 |
Prepaid leases reclassified from receivables | 3 |
To be capitalised as right-to-use assets at 1 January 2019 | £ 565 |