F
brovu & Wiluamson
SCh,4= O.F_AoolTIMQ IjMMMM Fad= Num, ;A49f"Ass Aug:: JAM AjqppA%T 3 1,
Date Prepureds- FW 1979
Delete as Apylluble
CONTINGENT LIAMILMIS MONS/
CURRENT ASSCIS I I MT&D TO AMUSE LESS TUN SOOK VALUZ NONE/
Kim TO Svosclas FOR, SAMUM Non/-.-
MIM ca0a UMITS OR LOSSM 09 MU'OlF ?=D ASSM
PAMUTS To DuAll I I W OWING COMPANY NOW
S 'TAL AUDITORS RUMTS Copy "at to lu KlUbank NONE
MORS 05 AUSITIS CTS & MMrT & LOSS AOMUNT w1w.
POST BALANCE SEW EVENTS NONE.,
mATERIAL TRANSATIONS INVOLVING DIRECTORS NON31,
DATE XA .........
Director Director
D A
REPORT OF THE AUDITORS 70 TM MRXC`TORS Olf Brovu &
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B.A.T hournmas P.Lr. - linsum Dwourony Copy - PMMCED PUFAMMff To VLD. OF
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BROWN A WILLIAMSON INDUSTRIES INCORPORATED
December 31, 1979
ATTACHMENT TO FORM F
Report of the Auditors to the Directors of Brown & Williamson
Industries Incorporated
We have examined the attached Consolidation Accounts, con-
sisting of Schedules A, Bl and G, of Brown & Williamson Industries
Incorporated, an Indirect wholly-owned subsidiary of B.A.T. Industries
Limited, a United Kingdom corporation (the ultimate holding company),
at December 31, 1979 and for the fifteen months then ended and at
September 30. 1978 and for the year then ended. Our examinations
were mad* in accordance with auditing standards generally accepted
in the United States and, accordingly, included such tests of the
accounting records Lad such other auditing procedures (which
included obtaining appropriate information and explanations) as
we considered necessary in the circumstances.
The primary purpose of the Consolidation Accounts which have
boon prepared In accordance with the ultimate holding compLny's
Memorandum on Consolidated Accounts and supplementary letters
thereto in to enable the Directors of the ultimate holding company
to prepare its coasolldatod financial statements in accordance
with United Kingdom accounting standards and in compliance with
United Kingdom company law. Those requiremonts differ in several
respect* from United States generally accepted accounting principles
an summarized in Schedule F to the Consolidation Accounts. Accor-
dingly, the &OCOMPsAyiXg Consolidation Acemuts, art not Intended
to present financial position and results of operations in conformity
with accounting principles generally accepted to the United States.
We expect to report separately on the consolidated financial state-
meats for the years ended December 31, 1979 and September 30, 1078
prepared in accordance with accounting principles generally accepted
in the United States.
An acted in Schedules F, G. N. Q and T to the Consolidation
Accounts, Brown & Williamson Industries Incorporated engages in
material transactions with affiliated companies.
to our opinion, the Consolidation Accounts consisting of the
schedules referred to in the first paragraph above present fairly
a true and fair view of the state of affairs of Brown & Williamsou
Industries Incorporated at December 31, 1979 and September 30, 1078
and of the results of its operations for the periods then ended, on
the basis of accounting specified by the Memorandum on Consolidated
Accounts and the supplementary letters thereto, which basis has been
consistently applied during the period.
Zu
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B.A..T k=XMM P.LX. - WRAWWA 000@ffony Copy pRontloo PLW4UOT TO I VLD. OF
Comw JUDOMW DA11ED 54M N STAg gF MMWEWA ST AL pWV CAn Hm CI-044MG
Our examinations have been made primarily for the purpose of
expressing an opinion on the Consolidation Accounts, taken as &
whole. The accompanying supplementary Information, which has been
prepared in accordance with the ultimate holding company's New-
randum an Consolidated Accounts and supplementary letters thereto,
consisting of Schedule* 92, Cl, C2, 8, L through 0, Q, 7 and Wl is
presented for analysis and ultinato holding company disclosure pur-
poses and is not necessary to present fairly a true and fair view
of the Consolidation Accounts referred to in the first paragraph
above. We have not examined the supplementary lnform&tioo for the
years ended December 31, 1979 and 1978 and, moo rdingly, we do not
express an opinion on it. Except for the information not examined
by us, the above noted supplementary Information has been subjected
to the tests and other auditing procedures applied in the examinations
of the Consolidation Accounts referred to in the first paragraph above
and, in our opinion, presents fairly & true and fair view, on the
basis described above, in all respects material in relation to the
Consolidation Accounts taken as a whole.
The statistical and other Information on Schedules R2, V and
W2 was not examined by us and, accordingly, we do not express an
opinion thereon.
This report in intended solely for the use of the ultimate
holding compsay's Board of Directors, mLs&gqm*nt and outside auditors;
it should not be proseat9d or quoted to anyone outside the Con W y
without our prior consent.
%I
Louisville, Kentucky
February 28. 1960
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Comw juDomw DATO &*U w SrAys oF Mlywom ErAL, y, A" MAU& Er CAMEN&C104MR
Company Nam: Brown & Williamson
Industries Me
Actual For: December 31 19h
Date Prepared: February 2% 1980
ATTACBMUT TO FORM F
The seem
Wigv= consolidation accounts do not include
Brown & W I an Industries. Inc.1a direct and Indirect
v1volly owned subsidiaries. Consolidation of those
4 as would be requit*d i VaLted, States
I --arally acceptod.accousting principles. Separate
consolidittion accounts are Limed with regard to these
subsidiaries as follows:
Brown and Williamson Tobacco Corporation
Gimbol-Bake Retailing Corporation
The Kohl Corporation
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Comm Amaw ftno Mn at $MIN gF MMMMrA, &T AL V. P#" MMM U-66 CmM MM C1 i @us
Company New: Brown& Williamson
Industries Inc.
Actual For: December H 1979
Date Prepared: February 24. 1980
ATTAMONT TO FORM F
U.S. $ in Thousands
Not intoms and stockholderfs equity are $12 and $37,
rBspectLval less under United Kingdom Accounting
S;Mwdords than under U.S. rZAAP since deferred
taxes are accounted for using the probable liability
method In aceordance, with WAS.
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comwff jugeow DAm swu w SrATs oF MWAwrA, ST AL v, P"v AWMK IT CAIS Ift C14M4M
Company Name; Brown & Williamson
Industries, Inc.
Date: December 31, 1979
Date Prepared: February 28, 1960
Currency: U. S. $ Thousands
ATTAr&NKMT TO FORK I
The Company has numerous transactions with Its affiliates
which are refloated elsewhere hotels with the exception
of service fees which wore an follows for the 15 months
ended, December 31, 1979:
Brown & Williamson Tobacco Corporation 510100
Glabol-Saks Retailing Corporation 5,198.1
Saks and Company 1,783/
The Kobl Corporation 1 150/
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Comm" JUDOOW WNW -2rM M A&MJRWA, T AL V. pWLV A@WM ET CAss No. C14M
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