1.0.0.3 false Income Taxes false 1 $ false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Income Taxes [Abstract] 0 rai_IncomeTaxesAbstract rai false na duration string Income Taxes. false false false false false true false false false 1 false false 0 0 false false Income Taxes. false 3 Income Taxes 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8 — Income Taxes</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The provision for income taxes in the second quarter of 2009 was $225 million, or an effective rate of 37.4%, compared with $216 million, or an effective rate of 37.2%, in the second quarter of 2008. The provision for income taxes in the first six months of 2009 was $234 million, or an effective rate of 37.8%, compared with $507 million, or an effective rate of 36.8%, in the first six months of 2008. The effective tax rate for the first six months of 2009 was unfavorably impacted by increases in unrecognized income tax benefits and increases in tax attributable to accumulated and undistributed foreign earnings. The effective rate for the first six months of 2008 was favorably impacted by a lower tax rate related to the gain on the termination of the Reynolds-Gallaher International Sarl joint venture. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The effective rate exceeds the federal statutory rate of 35% primarily due to the impact of state taxes and certain other nondeductible items, offset by the domestic production activities deduction of the American Jobs Creation Act, enacted on October 22, 2004. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The gross accruals for unrecognized income tax benefits, including interest and penalties, reflected in other noncurrent liabilities were $164 million and $159 million at June 30, 2009 and December 31, 2008, respectively. RAI accrues interest and penalties related to accruals for income taxes and reflects these amounts in tax expense. The gross amount of interest accrued at June 30, 2009 and December 31, 2008, was $53 million and $50 million, respectively. The gross amount of penalties accrued was $12 million at June 30, 2009 and December 31, 2008. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Gross increases in unrecognized tax benefits related to tax positions were $3 million for the six months ended June 30, 2009, attributable to current year tax positions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Gross decreases in unrecognized tax benefits were $1 million for the six months ended June 30, 2009, attributable to prior-year tax positions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2009, $58 million of unrecognized tax benefits and $45 million of interest and penalties, if recognized, would affect the effective tax rate. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Included in the provision for income taxes for the three months and six months ended June 30, 2009, was $2 million and $4 million of additional tax expense, including $1 million and $3 million of interest expense, net of federal benefit, and penalties associated with unrecognized tax benefits, respectively. Comparable amounts for the three and six months ended June 30, 2008, were $1 million and $9 million of additional tax expense, including $1 million and $2 million of interest expense, net of federal benefit, and penalties, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     RAI and its subsidiaries may be subject to income taxes in the United States, certain foreign jurisdictions and multiple state jurisdictions. A number of years may elapse before a particular matter, for which RAI has established an accrual, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. RAI’s major taxing jurisdictions and related open tax audits are discussed below. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     RAI filed a federal consolidated income tax return for the years 2005 through 2007. RAI expects to file a federal consolidated income tax return for 2008 on or before September 15, 2009. The statute of limitations remains open for the years 2005 through 2007. There are no IRS examinations scheduled at this time for these open years. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In 2007, the State of North Carolina completed its examination of RJR Tobacco for years 2000 through 2002 and issued a total assessment of $37 million: $21 million related to tax, $8 million related to interest and $8 million related to penalties. RJR Tobacco filed a protest in January 2008. RJR Tobacco will continue to work with North Carolina to resolve issues identified and assessed for years 2000 through 2002. A complete resolution is not anticipated within the next 12 months. However, in the event a complete resolution of this audit is reached during the next 12 months, RJR Tobacco could recognize additional expense up to $13 million, inclusive of tax, interest, net of federal benefit, and penalties. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     It is expected that the amount of unrecognized tax benefits will change in the next 12 months. Excluding the impact of North Carolina’s assessment for years 2000 through 2002, RAI does not expect the change to have a significant impact on its consolidated results of operations, cash flow or financial position. </div> </div> </body> </html>  Note 8 — Income Taxes      The provision for income false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true