TO: R. DESMOND
FROM: C. D. FRANCESCONI
SUBJ: ADDITIONAL CONTRIBUTION TO
B&WIS PENSION FUND
You asked for some additional information concerning the
accounting treatment of the proposed additional contribution,to
the RAW qualified pension funds. on a consolidated basis, BATuff-
Holdings, Inc. carries & not asset an its balance shoot
(classified as "Bundry Debtors") which includes the not
overfunding of its qualified pension plans. This not overfunding
is primarily a result of the RATUS restructuring and its offset
an the retail companies' ratirawant, plans.
'When making the additional contribution, B&K will incur
additiofial borrowings from B.A.T Capital Corporation since RAW
haa no cash of its own. The BATUS Holdings, Inc. consolidated
balance shoot will show an increase in "Long-Term Debt
(Intexcompank)" to reflect the additional borrowing from B.A.T
capital Corporation and a corresponding increase in "Sundry
Debtors".
3: hope this answers your question. If not, please call either
Pat Dougherty (568-7205) or Gone Tucker (568-8332).
C. D. T.
cc: P. Dougherty
G. Tucker
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B.A.T IMUNTRIES, P.LC. - MINNESOTA DEPOSITORY Copy PRODUCED PURSUANT To I VILD. OF
CONSENT JUDGMENT DATED 5/8418 IN STATE OF egEsOrA, ET AL V. P@KAP AftRRA CASE No. Cl-94-MS