Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Reynolds American Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Net sales, includes excise taxes	16,620)	14,625)	11,785)	11,629)	11,885)
Net sales, related party	226)	259)	311)	337)	342)
Net sales, includes excise taxes	16,846)	14,884)	12,096)	11,966)	12,227)
Cost of products sold, excludes excise taxes	(4,841)	(4,688)	(4,058)	(3,678)	(4,321)
Excise taxes	(4,343)	(4,209)	(3,625)	(3,730)	(3,923)
Gross profit	7,662)	5,987)	4,413)	4,558)	3,983)
Selling, general and administrative expenses	(1,931)	(2,098)	(1,871)	(1,389)	(1,470)
Gain on divestitures	4,861)	3,181)	—)	—)	—)
Amortization expense	(23)	(18)	(11)	(5)	(21)
Asset impairment and exit charges	—)	(99)	—)	—)	—)
Trademark and other intangible asset impairment charges	—)	—)	—)	(32)	(129)
Restructuring charge	—)	—)	—)	—)	(149)
Operating income	10,569)	6,953)	2,531)	3,132)	2,214)
Interest and debt expense	(626)	(570)	(286)	(259)	(234)
Interest income	8)	6)	3)	5)	7)
Other income (expense), net	(260)	(5)	14)	(137)	(34)
Income from continuing operations before income taxes	9,691)	6,384)	2,262)	2,741)	1,953)
Provision for income taxes	(3,618)	(3,131)	(817)	(1,023)	(681)
Income from continuing operations	6,073)	3,253)	1,445)	1,718)	1,272)
Income from discontinued operations, net of tax	—)	—)	25)	—)	—)
Net income	6,073)	3,253)	1,470)	1,718)	1,272)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

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Income statement item	Description	The company
Net sales, includes excise taxes	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Reynolds American Inc. net sales, includes excise taxes increased from 2014 to 2015 and from 2015 to 2016.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Reynolds American Inc. operating income increased from 2014 to 2015 and from 2015 to 2016.
Income from continuing operations before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Reynolds American Inc. income from continuing operations before income taxes increased from 2014 to 2015 and from 2015 to 2016.
Net income	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Reynolds American Inc. net income increased from 2014 to 2015 and from 2015 to 2016.

Reynolds American Inc. (NYSE:RAI)

Income Statement