TO. R. DESMOND
FROM: C. D. FRANCESCONr
SUBU: ADDITIONAL CONIMBUTION TO
B&NIS PENSION FUND
You asked for soma additional information concerning the
accounting treatment of the pr9posad additional contribution to
the DO qualified pension funds. On a consolidated basis, NATus-
Holdings, Xac. carries a not asset an its balance sheet
(classified as "Sundry Debtors") which includes the not
overfunding of its qualified pension plans. This not avarfunding
is primaril a result of the BATUS restructuring and its offset
on the retail companies' retirement plans.
When making the additional contribution, R&W will incur
additional borrowings from B.A.T Capital Corporation since D&W
has no vash of its own. The SATUS Holdings, Inc. consolidated
balance sheet will show an increase in RLong-Tera Debt
(Intercompany)" to reflect the additional borrowing from B.A.T
Capital Corporation and a corresponding increase in "Sundry
Debtors".
I hope this answers your question. If not, please call either
Pat Dougherty (568-7203) or G*n* Tucker (56B-6332).
C. D. T.
cc: P. Dougherty
0. Tucker
410
7/
C:)
CO
B.A.T INDusTRiEs P.Lc. - UWNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To ALD. OF
CONSENT JUOGvfiW DATEo Son im STATE OF Aftw5oT,% ET AL V. PMEIP AIORRK ET AL, CAM No. C1. 5