Frequently Asked Questions
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I owned RJR stock and I haven't received my RAI dividend. Why not? - Holders of RJR Common Stock certificate(s) will not receive any dividends made by Reynolds American Inc. until their certificates are surrendered for exchange. Upon surrender and subject to applicable laws, such holders will receive payment for all dividends for record dates that occur after July 30, 2004. If you need a replacement Letter of Transmittal to exchange your certificate(s), please contact The Bank of New York, toll-free, 1-800-507-9357.
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What is the history of Reynolds American Inc.?
- On Oct. 27, 2003, R.J. Reynolds Tobacco Holdings, Inc. (NYSE: RJR) and British American Tobacco p.l.c. (AMEX: BTI) signed an agreement to combine the assets and operations of their respective U.S. tobacco businesses: R.J. Reynolds Tobacco Company (RJRT) and Brown & Williamson Tobacco Corp. (B&W).
The agreement provided for the establishment of a new publicly traded holding company, Reynolds American Inc., with approximately 150 million shares outstanding. At closing, on July 30, 2004, BAT owned 42 percent of those shares through its Brown & Williamson subsidiary, and the remaining 58 percent was owned by former RJR shareholders, who received RAI stock in a one-for-one exchange for their RJR stock.
Reynolds American Inc. first began trading on the New York Stock Exchange on Aug. 2, 2004 as the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc. and Lane Limited. Lane Limited was acquired from BAT as part of the transaction that established Reynolds American Inc.
R.J. Reynolds Tobacco Company, the second-largest U.S. cigarette manufacturer, manufactures about one of every three cigarettes sold in the United States, including five of the nation's 10 best-selling cigarette brands: Camel, Winston, Kool, Salem and Doral.
Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit additive-free cigarettes and other tobacco products, and markets them both nationally and internationally.
Lane Limited manufactures several roll-your-own, pipe tobacco and little cigar brands, and distributes Dunhill tobacco products. -
What effect does the formation of Reynolds American have on my RJR stock?
- On July 30, 2004, following approval by shareholders of R.J. Reynolds Tobacco Holdings, Inc. (NYSE: RJR), Reynolds American Inc. (NYSE: RAI) became the new, direct parent company of RJR (which owns all of the stock of R.J. Reynolds Tobacco Company), Santa Fe Natural Tobacco Company, Inc. and Cigarette Manufacturers Supplies Inc. (CMSI), which owns all of the stock of Lane Limited).
Under the terms of that transaction, each RJR shareholder is entitled to receive one share of Reynolds American common stock for each share of RJR common stock owned on the closing date. These shares in the aggregate constituted approximately 58 percent of the 150 million outstanding shares of Reynolds American common stock on the closing date. The remaining 42 percent ownership of RAI is indirectly held by British American Tobacco p.l.c. (AMEX: BTI) , which received those shares in exchange for the U.S. assets and operations of its Brown & Williamson Tobacco Corp. subsidiary, which have been combined with the operations of R.J. Reynolds Tobacco Company.
Prior to the close of the deal, the U.S. Internal Revenue Service issued a ruling indicating that RJR shareholders could exchange their RJR shares for RAI shares on a tax-free basis. For information about how to exchange RJR shares, click here. -
Who is RAI's stock transfer agent?
- RAI's stock transfer agent is the Bank of New York Mellon. Shareholders of record are encouraged to call (877) 679-5701 or e-mail shrrelations@bnymellon.com for:
- Questions regarding individual account positions in Reynolds American Inc. (RAI) or R.J. Reynolds Tobacco Holdings, Inc. (RJR) securities;
- Questions regarding IRS Forms 1099;
- Change of address;
- To arrange for electronic deposit of dividends; and
- Information about the BuyDIRECTSM direct stock purchase and dividend reinvestment programs.
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What is Reynolds American's dividend policy?
- Reynolds American is committed to building and returning value to shareholders. On Aug. 18, 2004, the Reynolds American board of directors endorsed a recommendation by RAI management that Reynolds American establish a dividend policy of annually returning approximately 75 percent of its consolidated net income to shareholders in the form of a dividend. The recommendation was made by RAI management pursuant to the terms of the business combination with Brown & Williamson Tobacco Corporation that was completed on July 30, 2004. On Dec. 6, 2010, RAI announced that the board had approved an increase in that dividend payout ratio to 80 percent.
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Does RAI conduct quarterly earnings conference calls?
- Yes. The company hosts regular conference calls four times each year – on the days that it issues a news release announcing quarterly results of operations. A replay of the call will be available on the company's Web site. Rebroadcast of the copyrighted call or any portion thereof is prohibited. Each call will be available to the public live online at www.reynoldsamerican.com on a listen-only basis. Click here to see if the next webcast has been scheduled.
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What is the history of R.J. Reynolds Tobacco Holdings, Inc. (RJR), which was a publicly traded company prior to the formation of Reynolds American Inc. (RAI)?
- On May 12, 1999, at its annual meeting of shareholders, RJR Nabisco Holdings Corp. announced the plan to spin off its domestic tobacco business from its foods business to create two independent, separately traded companies: R.J. Reynolds Tobacco Holdings, Inc. (RJR) and Nabisco Group Holdings Corp.(NGH). RJR's first day of public trading on the New York Stock Exchange was June 15, 1999.
On July 30, 2004, RJR became a wholly owned subsidiary of Reynolds American Inc., and RAI began trading on the New York Stock Exchange on Aug. 2, 2004. -
What did shareholders of RJR Nabisco Holdings Corp. stock receive as a result of RJR's 1999 spin-off from RJR Nabisco?
- As a result of the spin-off, RJR Nabisco Holdings Corp. (RN) was renamed Nabisco Group Holdings Corp. (NGH). NGH shareholders received one share of R.J. Reynolds Tobacco Holdings, Inc. (RJR) for every three shares of NGH they held as of the record date, May 27, 1999. As an example: if the NGH shareholder held 100 shares of NGH stock at the close of business on May 27, 1999, the shareholder received 33.3333 shares of RJR stock. The shares of RJR stock received by a shareholder were credited to their account by the transfer agent on or around June 14, 1999, and held in book-entry form, unless a shareholder requested physical certificates. In the example, the distribution of the RJR stock resulted in whole and partial shares. If the shareholder requested physical certificates, any partial share was paid out in cash.
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How do I enroll, or change my preferences, for electronic delivery of annual meeting materials?
- We are pleased to offer our Shareholders the benefits and convenience of electronic delivery. Please click here to enroll. Please click here to change your enrollment information
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