R.J.

Reynolds International Financing

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Exhibit 1 Consolidated Statements of Earnings and Earnings Retained (Dollars in
millions except per share amounts)
1984 1983 1982
Net Sales $12,974 $12,312 $10,160
Costs and expenses:
Cost of products sold 8,282 8,226 6,719
Selling, advertising, administrative, and
general expenses 3,073 2,689 2,219
Earnings from continuing operations 1,619 1,397 1,222
Interest and debt expense (net of capitalized
amounts of $29, $9, and $4 respectively) (187) (196) (186)
Other income (expense), net 120 87 61
Earnings from continuing operations before
provisions for income taxes 1,552 1,288 1,097
Provision for income taxes 709 586 513
Earnings after taxes 843 702 584
Extraordinary items 311 117 250
Net earnings applicable to common stock 1,154 819 834
Earnings retained at beginning of year 4,461 3,987 3,457
Less:
Cash dividends on common stock 360 345 304
Distribution of Sea-Land stock 540 -- --
Retirement of common stock 681 -- --
Earnings retained at end of year $4,034 $4,461 $3,987
Net earnings per common share:
Continuing operations $7.00 $5.66 $5.14
Discontinued operations 3.27 1.59 2.68
$10.27 $7.25 $7.82
Average number of common shares outstanding
(in thousands) 112,375 112,997 106,706
Exhibit 2 Consolidated Balance Sheets—December 31 (Dollars in
millions)

1984 1983
ASSETS
Current assets:
Cash and short-term investments $1,323 $ 363
Accounts and notes receivable (net) 1,226 1,344
Inventories 2,493 2,69
Prepaid expenses 72 64
Total current assets $5,114 $4,461
Property, plant, and equipment—at cost $3,760 $3,001
Less depreciation and amortization (944) (794)
Net property, plant, and equipment 2,816 2,207
Other assets 1,342 2,549
Total Assets $9,272 $9,217
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable $ 101 $ 132
Accounts payable and accrued accounts 1,459 1,205
Current maturities of long-term debt 227 38
Income taxes accrued 463 124
Total current liabilities $2,250 $1,499
Long-term debt (less current maturities) 1,257 1,42
Other noncurrent liabilities 265 168
Deferred income taxes 523 276
Redeemable preferred stocks 499 631
Common stockholders' equity
Common stock 255 280
Paid-in capital 344 585
Cumulative translation adjustments (155) (103)
Earnings retained 4,034 4,461
Total common stockholders' equity 4,478 5,223
Total liabilities and stockholders' equity $9,272 $9,217
Exhibit 3 R.J. Reynolds Geographic Data (Dollars in millions)

1984 1983 1982

Net Sales:
United States $10,216 $9,584 $7,753
Canada 628 566 548
Europe 1,336 1,383 1,146
Other geographic areas 1,194 1,117 1,038
Less transfer between geographic areas (400) (338) (325)
Consolidated net sales $12,974 $12,312 $10,160
Earnings from continuing operations:
United States $1,464 $1,297 $1,172
Canada 53 44 44
Europe 46 37 32
Other geographic areas 150 110 50
Other (principally corporate expense) (94) (91) (76)
Consolidated earnings from continuing
operations $1,619 $1,397 $1,222
Assets:
United States $5,203 $4,443 $4,641
Canada 399 337 304
Europe 511 451 413
Other geographic areas 594 560 515
Corporate 2,565 1,977 1,517
Net assets of discontinued operations -- 1,449 1,85
Consolidated assets $9,272 $9,217 $9,240
Liabilities of company's continuing
operations located in foreign countries $832 $844 $729
Exhibit 4 Nabisco Brands, Inc.—Consolidated Statement of
Income (Dollars in millions except per share data)
1984 1983 1982
Net sales $6,253 $5,985 $5,871
Cost of sales 3,939 3,73 3,7
Gross profit 2,314 2,255 2,171
Selling, general, and administrative
expenses 1,735 1,627 1,597
Operating income 579 628 574
Interest expense 77 77 90
Miscellaneous (income) expense, net (27) (15) (39)
Income before income taxes 529 566 523
Income taxes:
Current
United States 86 90 75
Foreign 75 78 74
State and local 19 13 20
Deferred 40 62 39
Total income taxes 220 243 208
Net income $309 $323 $315
Net income per common share $5,03 $4,87 $4,84
Dividends declared per common share $2,48 $2,28 $2,05
Average common shares outstanding (in
thousands) 61,486 66,31 65,026
Exhibit 5 Nabisco Brands, Inc.—Consolidated Balance Sheet—
December 31 (Dollars in millions)
1984 1983
ASSETS
Current assets:
Cash and short-term investments $268 $251
Accounts receivable (net) 604 621
Inventories 766 766
Prepaid expenses 29 25
Total current assets $1,667 $1,663
Property, plant and equipment 2,459 2,376
Less depreciation (913) (868)
Other assets (net) 548 455
$3,761 $3,626
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable $27 $39
Accounts payable and accrued expenses 923 924
Current maturities of long-term debt 33 42
Income taxes accrued 54 74
Total current liabilities $1,037 $1,079
Long-term debt $682 $482
Other liabilities and minority interests 205 110
Deferred income taxes 292 244
Redeemable preferred stocks 2 2
Common stockholders' equity:
Common stock 139 139
Paid-in capital 277 276
Cumulative translation adjustments 1,837 1,680
Earnings retained (215) (151)
Less treasury stock at cost (495) (235)
Total common stockholders' equity $1,543 $1,709
$3,761 $3,626
Exhibit 6 Nabisco Geographic Data (Dollars in millions)

1984 1983 1982

Net Sales:
United States $3,950 $3,622 $3,491
Canada 721 732 639
Europe 1,102 1,138 782
Latin America 290 298 374
Asia/Pacific 190 195 178
Other 407
Consolidated net sales $6,253 $5,985 $5,871
Earnings from continuing operations:
United States $451 $475 $438
Canada 61 67 60
Europe 78 81 67
Latin America 53 58 57
Asia/Pacific 10 13 12
Other (principally corporate expense) (63) (66) (60)
Consolidated earnings from continuing $590 $628 $574
operations

Assets:
United States $1,730 $1,659 $1,541
Canada 373 376 415
Europe 791 822 819
Latin America 197 191 259
Asia/Pacific 119 136 120
Corporate 551 442 770
Consolidated assets $3,761 $3,626 $3,924
Exhibit 7 Summary of Five-Year Eurobond Terms Available to R.J.
Reynolds

Yen/Dollar Dual
Dollar Yen Currency
Eurobonds Eurobonds Eurobonds
Face value $100 million ¥25 billion ¥25 billion
Price 100.125% 100.250% 101.500%
Fees 1.875% 1.875% 1.875%
Coupon (paid annually) 10.125% 6.375% 7.750%
Final Redemption Par Par $115.956 million
Exhibit 8 Long-Dated Yen/Dollar
Forward Exchange Rates (Forwards
Arranged by Nikko Securities)

Outright Rates
Year Bid Offer
0 236.80a 236.90
1 231.30 231.70
2 223.90 225.90
3 215.60 218.70
4 207.10 211.20
5 197.60 202.70

a
Bid and offer rates are quoted from the
perspective of the market-making dealer. For
example, a dealer bank would buy a dollar
from a corporation in exchange for selling to it
236.80 yen. Similarly, the bank would sell a
dollar to a corporation in exchange for buying
from it 236.90 yen.
Exhibit 9 Currency and Interest Rate Swap Indications (All rates are against six-month dollar
LIBOR)
Semiannual Benchma Semiannual Fixed Annual Fixed
Quotations rk U.S. Rates Against 6- Rates Against 6-
Treasury Month Dollar Month Dollar
Pay Receive Pay LIBOR
a
Receive PayLIBOR
Receive
5-Year Dollar Ratesb T+60 T+76 9.88% 10.48% 10.64% 10.75% 10.92%
5-Year Yen Rates 6.98% 7.22% 7.10% 7.35%
a
AII rates are quoted from the perspective of the bank offering the swap—that is, a bank would agree to pay semiannual
fixed dollars at 10.48% against receiving semiannual six-month dollar LIBOR. Similarly, the bank would agree to receive
semiannual fixed dollars at 10.64% against paying semiannual six-month dollar LIBOR.
b
T represents the semiannual yield on five-year U.S. Treasury securities.