WPC[ zYOW.UP#j8`%p/L 0m9Z}keFjKIE\/*z #:|8*ҡI킌(/Z*J>@7*1LCEPf~rPM[q~ALiW>h%Mo&scaEʚ> 5Uyjn9jq| 8*Y R}``^ryR-JEk:nv3!^8Pr%L =-ye0*k49imJx 3a_* )8uK1yIa6,# UN % 0(UlNfg^ iwu4yffa mfaaNfU(,U.@'dgUPUN(i Baff(a*M>>>>fBEUNU@;; D+{ 0Cl 0Ja 0C  AP 0veeeee@z`````" BU* D5Cfxazo|fIAK~ ?zajf~ah$UN;favUN̩̩̩̩̩̩̩̩̩̩ Bfaݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯݯ:.-\\FP01\HP692c0(9 Z6Times New Roman RegularX($(hH  Z 6Times New Roman Regularb5 c.u)BackupTABLE A3|xU|Table_ATABLE BX'n2 ZTimes (@ Z(Times New Roman  LiggettAltriaredesignatedcouponing&ahZ 8CaslonOpnface BT Regular+ 1x 6Albertus Medium Regular dTABLE C \\R3'Avery 5261 Address\Table_A \\R3'Avery 5261 Address\ ; 4Vf$Ӏ  2    _  Cigarettesgivenaway'XXXXincludeallcigarettesdistributedforfree,whetherthrough 8 sampling,couponsforfreeproduct, buy3packs,get1freetypeoffers,orotherwise,aslongas $  thosecigaretteswerenotreportedassold.#XXX'X蜀#ԀInearlieryears,theCommissionrequiredthe 8 manufacturerstoreportthenumberC6z C ofcigarettestheysoldbutnotthenumbertheygaveaway.It $ ispossible,however,thatinthoseprioryears,somemanufacturersincludedintheirsalesfigures  somecigarettesthatwereactuallygivenaway.(hH  Z 6Times New Roman Regular<4 9Z+(Times New Roman 'dxd Level 1 Level 2 Level 3 Level 4 Level 5(2C$ !  ("$ Figure    TABLE A($    +,-* I&mage <=8C HKKKK(-!2Vf$ !  Ӏ  0   4Vf$Ӏ  1    _  Thisreportincludes2003salesandadvertisingandpromotionexpendituredatafor 8 Brown&WilliamsonTobaccoCorp.TJ:\Corel2K2\Corel\WORDPE~1\Graphics\FTCCLI~1\PC_FTC~1.GIF     P Pd%2A`ArialIIII)!dxdxTable_AWPC|d d d d 5134!*VVd d ++ H!!!)))999RRRZZZ{{{|ll}            ԇ          Ã                                      M       e   ~    8    z      m          ti         pi           _]           _X           SL         OH               OH            B;            >7         1/             1+          1+          %            !         !                                                                                                                                                                                                                                                                                                                                                                        5      -                             # #         3 4         L Q         e b    e b       e b       e b     a  U      3   +                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        )   '                             Q  L            M  L            M   H            H  H     )     ?   <         "               "                                                                                                                                                                                                                ߃                      ҃                                                                                       z                      Y                      3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ]              U                   M                    H                     D                  ;                3                   +                  #                                                                                                                                                                                                                                                                                                                                                                                                       !"       b     )+     #    )+            13            6;              :;               BH                FL            JP         WX          []           hi         hi            pz          xz                                    3                                     ԃ               4Vf$Ӏ  3    _  USDAsestimatesalsoincludesalesbysmallermanufacturersandimporters. 7 4Vf$Ӏ  4    _  Thereportedfiguresincludealladvertising,merchandising,andpromotional e expendituresrelatedtocigarettes,regardlessofwhethersuchexpenditureswouldconstitute Q  commercialspeechorwouldbeprotectedfromlawenforcementactionundertheFirst = Amendment.TheCommissionbeganrequiringtobaccocompaniestoincludeexpendituresfor ) suchprotectedspeechin1989. t    \R3'\  4Vf$Ӏ  5    _  Insomecases,thecompanieswereaskedtoreportthese dualexpendituresina e differentcategorythantheypreviouslywerereported. 4Vf$Ӏ  6    _  DetaileddefinitionsofthecategoriescurrentlyusedarereportedinAppendixA.:@tJ:\Corel2K2\Corel\WORDPE~1\Graphics\FTCCLI~1\PC_FTC~1.GIFJ:\Corel2K2\Corel\WordPerfect Office 2002\Graphics\FTC Clipart\pc_ftc_bw.gif TV TV TV |r $h@U*w09*w99 Uw@*w`P*wH 4Vf$Ӏ  7    _  Priorto2002,transitadvertisingwasdefinedasadvertisinginoronpublictransportation e facilities.TABLE DTABLE E  4Vf$Ӏ  8    _  Brandedspecialtyitemdistributionincludesthepracticeofsellingorgivingtoconsumers e noncigaretteitemssuchasTshirts,caps,sunglasses,keychains,calendars,lighters,and Q sportinggoodsbearingacigarettebrandsnameorlogo. ^ 4Vf$Ӏ  9    _Ԁ  Nonbrandedspecialtyitemdistributionincludesthepracticeofgivingconsumersnon e cigaretteitemssuchascompactdiscs,lighters,andsportinggoodsinconnectionwiththe Q marketingofcigarettes.  4Vf$Ӏ  10    _  Thecigarettecompaniesalsospent$160,000ondXXXXpublicentertainmenteventsdisplaying e theircorporatename,butnotdisplayingthenameorlogoofanybrandofcigarettesorotherwise Q referringtocigarettes.#XXXdX蜚#(hH  Z 6Times New Roman RegularTABLE F l 4Vf$Ӏ  11    _  Thiscategorydoesnotincludedirectmailcontainingcoupons.Couponssentviadirect e mailwerereportedinthecouponandretailvalueaddedcategoryfrom1988to1996,buthave Q beenreportedseparatelysince1997.  4Vf$Ӏ  12    _  In2002,theCommissionclarifiedthatlXXXXwhencouponsaredistributedforfreecigarettes e andnopurchaseisrequiredtoredeemthem,suchactivitiesshouldbereportedonlyas Q  sampling,notas coupons.#XXXlX蜒#(hH  Z 6Times New Roman Regular 4Vf$Ӏ  13    _  Thecigarettesandthebonusitemsareoftenpackagedtogetherasasingleunit.  dTABLE G  4Vf$Ӏ  14    _  Thisincludesexpendituresfor:(1)thesponsoring,advertising,orpromotionofsportsor e sportingevents;supportofanindividual,group,orsportsteam;andpurchaseoforsupportfor Q equipment,uniforms,sportsfacilities,and/ortrainingfacilities;(2)allexpendituresfor = advertisinginthenameofthecigarettecompanyoranyofitsbrandsinasportsfacility,ona ) scoreboard,orinconjunctionwiththereportingofsportsresults;and(3)allexpendituresfor  functionalpromotionalitems(clothing,hats,etc.)connectedwithasportingevent. 4Vf$Ӏ  15    _  Theseexpendituresarenotincludedinthe$15.14billionreportedinTable2C. 4Vf$Ӏ  16    _  Priorto2002,theCommissionaskedwhether tarandnicotineratingsweredisplayed e oncigarettepackaging.   0  e      $      !  _5Q5' XXX'g3:3#` p0' ` Eqg qq(#(# qqqq qqqq qqqq qqqq qqqq qqqq qqqq qqqq (#(#qq[XX [@dd #[ 9#X}[FederalTradeCommission p    `  CigaretteReport X    `    For2003   #X=XX}#X XX=@*#}  X#X  }ԈX@*   `     h      p ISSUED:2005  (J$ X X  TRX3'X3' Letter3'Letter5' XXX'g3:3'LetterT X  8585#}  X##XX }#8XXdd8  ?*XXXXpgI.0  INTRODUCTION 8T$T$ H  Thisreportisthelatestinaseriesoncigarettesales,advertising,andpromotionthatthe  FederalTradeCommission( theCommission)haspreparedannuallysince1967.     Thestatisticaltablesappendedtothisreportprovideinformationondomesticsalesand   advertisingandpromotionalactivityforU.S.manufacturedcigarettesfortheyears1963through  ` 2003.Thetableswerecompiledfromrawdatacontainedinspecialreportssubmittedtothe p 8  CommissionpursuanttocompulsoryprocessbythefivemajorcigarettemanufacturersintheUnited H  States:AltriaGroup,Inc.#XXXX蜇#XXXXԀ(theultimateparentofPhilipMorris);HouchensIndustries,Inc.(the    ultimateparentofCommonwealthBrands,Inc.);#XXXX? #XXXXԀLoewsCorp.(theultimateparentofLorillard  TobaccoCo.)#XXXX #XXXX;ReynoldsAmerican,Inc.(theultimateparentofR.J.ReynoldsTobaccoCo.and#XXXX蜜 #XXXXSanta  FeNaturalTobaccoCompany,Inc.andwhichacquiredBrown&WilliamsonTobaccoCorp.in p 2004#XXXX. #XXXX5 2  1      )#XXXX #XXXX;andVectorGroupLtd.(theultimateparentofLiggettGroup,Inc.and#XXXX蜐#VectorTobacco,Inc.)XXXX. H #XXXX/#  Thereportshowsthatthetotalnumberofcigarettessoldorgivenawaydecreasedby19.8 X  billioncigarettes(5.1percent)from2002to2003,whileadvertisingandpromotionalexpenditures 0 rose$2.68billion(21.5percent)to$15.15billion,themosteverreportedtotheCommission.The  largestsinglecategoryofexpenditureswasXXXXpricediscountspaidtocigaretteretailersorwholesalersin  ordertoreducethepriceofcigarettestoconsumers.Thisonecategoryaccountedfor$10.81billion, !  or71.4percentoftotaladvertisingand#XXXX#promotionalexpenditures.  #X"    Table1displaysannualcigarettesalesbymanufacturerstowholesalersandretailersfrom h%0!$ 1963to2000.Table1Adisplaysthetotalnumberofcigarettessoldandgivenawayfortheyears @'#& 2001through2003.&h 2  2      ׀In2003,themajordomesticcigarettemanufacturerssoldorgaveaway367.6 )$( p e8    billioncigarettesdomestically,19.8billion(5.1percent)fewerthanthe387.4billiontheysoldor e gaveawayin2002.Salesdeclinedfrom376.4billionin2002to360.5billionin2003,while = XXXXcigarettesgivenawaydecreasedfrom11.1billionin2002to7.1billion#XXXX蜥#XXXXin2003.#XXXX0#    BecausethecigarettesalesdatareportedtotheCommissionbythemajormanufacturersare   basedonfactoryshipments,andthuscanreflectchangesininventoryholdingsbycigarette  ` wholesalersandretailers,theCommissionsannualreportsalsoincludeinformationfromthe  8  cigaretteconsumptionseriesproducedbytheU.S.DepartmentofAgriculture(USDA),whichis u  basedonanestimateofthenumberofcigarettesactuallyconsumed.U@ 2  3      ׀USDAscigaretteconsumption M  estimates,whichareincludedinTables1and1A,showa3.6percentdecreasefrom2002to2003 % (from415billioncigarettesto400billion).     Tables2through2Cshowtheamountsspentoncigaretteadvertisingandpromotionforthe p years1970,and1975through2003.W 2  4      ׀Thesetableslisttheamountsspentonthedifferenttypesof H mediaadvertising(e.g.,newspapersandmagazines)andsalespromotionactivities(e.g.,distribution   ofcigarettesamples),andalsogivethepercentageofthetotalamountspentforthevarioustypesof ] advertisingandpromotion. 5 g       TheCommissionsubstantiallyreviseditsdefinitionsofthevariousadvertisingand e promotionalexpenditurecategoriesin2002.Theserevisionsclarified(and,insomecases,expanded) = thedefinitionsofcertaincategories,splitseveralcategoriesintosmallersubcategories,andspecified  wheremoneyshouldbereportedwhenexpendituresfellwithintwoormorecategoriesXXXX.Y 2  5      ׀The   Commissionalsoaddednewcategoriestopickupexpendituresthatmayhavepreviouslybeen  ` unreportedorreportedinthecatchall othercategory.#XXXXz#Zh 2  6        8    Table2Cshowsthatoverall,$15.15billionwasspentoncigaretteadvertisingandpromotion u  in2003,themosteverreportedbythemajorcigarettemanufacturers.The$15.15billionrepresents M  anincreaseof21.5percentfromthe$12.47billionspentin2002,andof35.0percentfromthe$11.22 % billionspentin2001.    Newspaperadvertisingexpendituresdecreasedfrom$25.5millionin2002to$8.3millionin p 2003,thesmallestamountreportedforthiscategorysincetheCommissionbeganaskingabout H newspaperspendingin1970.Thisadvertisingcategoryaccountsfor0.05percentofallexpenditures.   Althoughnewspaperspendingaccountedfor23.1percentoftotalexpendituresin1981,ithas ] accountedforlessthanonepercentofexpendituressince1992. 5   Themanufacturersreportedspending$156.4milliononmagazineadvertisingin2003,an   increaseof46.4percentfrom2002.Magazineadvertisingrepresented1.0percentoftotalspending. !  Spendingonmagazineadvertisingpeakedin1984,whenthecigarettecompaniesreportedspending #X" $425.9million(20.3percentoftotaladvertisingandpromotionalexpenditures). %0!$   Spendingon outdooradvertisingtotaled$32.6millionin2003,or0.2percentoftotal e advertisingandpromotionalspending.Thisrepresentsanincreaseof34.8%fromthe$24.2million = spentin2002.In2002,XXXX outdooradvertisingwasdefinedtomeanbillboards;signsandplacardsin  arenas,stadiums,andshoppingmalls(#XXXX&#whethertheyareopenairorenclosed);andanyother   advertisementsplacedoutdoors,regardlessoftheirsize,includingthoseoncigaretteretailerproperty.  ` Inprioryears, outdooradvertisingwasnotpreciselydefined.Inparticular,itwasnotclearthat  8  signsinarenas,shopping,stadiums,shoppingmalls,oronretailerpropertywouldhavebeenreported u  inthiscategory.Expenditureson outdooradvertisingpeakedat$386.1millionin1991. M    Astheyhavesince2001,thecompaniesreportedthattheymadenoexpendituresontransit % advertising(i.e.,advertisingwithinoronprivateorpublicvehiclesoranytransportationfacility)in  2003.Transitadvertisingpeakedat$60.2millionin1991.] 2  7       p   Spendingonpointofsalepromotionalmaterials(adspostedattheretaillocationbut H excludingoutdooradsonretailerproperty)declinedfrom$260.9millionin2002to$165.6millionin   2003,a36.5percentdecrease.Pointofsaleadvertisingaccountedfor1.1percentoftotaladvertising ] andpromotionin2003.Theseexpenditurespeakedin1993at$400.9million. 5   Beginningin2002,the promotionalallowancecategorywasbrokenintofournew   categories:pricediscounts,promotionalallowancespaidtoretailers,promotionalallowancespaidto !  wholesalers,andotherpromotionalallowances.Thelargest promotionalallowancecategorywas #X"  XXXXpricediscountspaidtocigaretteretailersorwholesalersinordertoreducethepriceofcigarettesto %0!$ consumers(e.g.,offinvoicediscounts,buydowns,andvoluntarypricereductions),whichaccounted m'#& ?* ?  ?  forexpendituresof$10.81billionin2003.Thiscategoryincreasedby$2.93billion,or37.3percent e from2002.Inaddition,in2003,theindustryspent$1.23billiononpromotionalallowancespaidto = cigaretteretailersinordertofacilitatethesaleorplacementofcigarettes(e.g.,paymentsforstocking,  shelving,displaying,andmerchandisingbrands;volumerebates;andincentivepayments)and$683.1   milliononpromotionalallowancespaidtocigarettewholesalers(e.g.,paymentsforvolumerebates,  ` incentivepayments,valueaddedservices,andpromotionalexecutions).Finally,$2.8millionwas  8  spentonpromotionalallowancespaidtoanyoneelse(otherthanretailers,wholesalers,andfulltime u  companyemployees)involvedinthecigarettedistributionandsalesprocess,inordertofacilitatethe M  saleorplacementofcigarettes.#XXXX.# Whenthesefourpromotionalallowancecategoriesarecombined, % theytotal$12.72billionandaccountfor84.0percentofall2003spending.In2002,thecompanies  reportedexpendituresof$9.66billiononthesecategories;andin2001,thelastyearbeforethe p Commissionreviseditsdefinitionsofpromotionalallowances,thecompaniesreportedexpenditures H of$4.45billion.     Moneyspentgivingcigarettesamplestothepublic( samplingdistribution)decreasedfrom ] $28.8millionin2002to$17.9millionin2003,adeclineof38.0percent. Samplingwasredefined 5 in2002toinclude,amongotherthings,XXXXwhencouponsaredistributedforfreecigarettesandno   purchaseisrequired#XXXXf7#.Cigarettesamplingdistributionaccountedfor0.1percentofthetotalspenton !  advertisingandpromotionin2003.Theseexpenditureshaveaccountedforlessthanonepercentof #X" totalspendingeveryyearsince1992. %0!$   In2002,thespecialtyitemdistributioncategorywasbrokenintotwonewcategories:branded m'#& andnonbranded.In2003,$9.2millionwasspentonbrandedspecialtyitemdistributionthroughthe E)$( mail,atpromotionalevents,orbyanymeansotherthanatthepointofsalewiththepurchaseof +&* cigarettes.a 2  8      ׀(Specialtyitemsdistributedalongwiththepurchaseofcigaretteswereredesignatedas e retailvalueaddedexpensesbeginningin1988.)In2003,another$255.0millionwasspent = distributingnonbranded,noncigaretteitemsinconnectionwiththemarketingorpromotionof  cigarettes.bT 2  9      ׀Thetotalof$264.2millionspentonspecialtyitemdistributionaccountsfor1.7percent   oftotaladvertisingandpromotionalexpenditures.In2002,specialtyitemdistributionexpenditures  ` were$223.6million.  8    In2003,expendituresforadultonlypublicentertainmentcategorydroppedto$150.9million, u  from$219.0millionin2002,adeclineof31.1percent.ThiscategoryXXXXincludespublicentertainment M  events#XXXXr>#(e.g.,sponsorshipofbarnightsorconcerts)XXXXԀthattakeplaceinanadultonlyfacility#XXXX ?#XXXXԀandthat % displaythenameorlogoofacompanyscigarettesorotherwiserefertocigarettes.In2003,a#XXXX蜌?#nother  $32.8millionwasspentongeneralaudiencepublicentertainment!i.e.,XXXXevents#XXXX蜼@#Ԁ(e.g.,sponsorshipof p afishingtournament)XXXXthatdonottakeplaceinanadultonlyfacility#XXXXLA#XXXXԀandthatdisplaythenameorlogo H ofacompanyscigarettesorotherwiserefertocigarettes.#XXXX蜾A#c 2  10      ׀Generalaudiencepublicentertainment   declined3.6percentfrom2002. ]   Thecompaniesalsoreportedspending$31.4millionin2003ontheXXXXsponsorshipofsports 5 teamsorindividualathletes.Thisexpenditurecategory,whichaccountsfor0.2percentofall   advertisingandpromotionalexpenditures,decreasedfrom$54.2millionin2002,a42.2percent e decline.#XXXX蜇C# =   Allreportingcompaniesindicatedthatnomoneyhadbeenspentonendorsementsand  testimonialsforcigarettesin2003.Noexpenditureshavebeenreportedinthiscategorysince1988.     Thecigarettecompaniesreportedatotalof$93.0millionfordirectmailadvertisingin2003,a  ` 16.5percentdecreasefromthe$111.3millionreportedin2002.j 2  11        8    Theindustryreportedspending$650.7milliononcouponsin2003,a24.6percentincrease u  fromthe$522.2millionreportedin2002.kT 2  12       M    Retailvalueaddedexpendituresarethecostsassociatedwithofferssuchas buyone,getone % freeand buythree,getafreeTshirt,wherethebonusitemisdistributedatretailwhenthe  cigarettesarepurchased.v 2  13      ׀Thecompaniesspent$677.3millionin2003onretailvalueadded p involvingfreecigarettes,a36.1percentdeclinefromthe$1.06billionreportedin2002.Theyalso H spent$20.5milliononretailvalueaddedinvolvingfreenoncigaretteitemsin2003,foratotalof   $697.8millionspentonanytypeofretailvalueadded.In2001,combinedretailvalueadded ] expenditureswere$4.76billion,makingretailvalueaddedthelargestcategoryofexpenditures 5 reportedbythecompaniesthatyear.     In2003,thecompaniesreportedspending$2.9milliononadvertisingonacompanyInternet !  website,threetimesthe$940,000reportedin2002.Thecompaniesreportednoexpendituresonany e otherInternetadvertising(e.g.,XXXXbanneradsonthirdpartysitesanddirectmailadvertisingusinge = mail).#XXXX M#    In2003,thecompaniesreportedspending$760,000ontelephoneadvertising,anincreaseof   11.9percentovertheXXXX$679,000#XXXXRN#Ԁreportedin2002.Thiscategoryincludesexpensesassociatedwith  ` XXXXtelemarketingcallsortheoperationofincomingtelephonelinesforconsumerstoparticipatein  8  promotionsorhearprerecordedproductmessages(butexcludescostsassociatedwithcustomer u  servicerepresentativesforrespondingtoconsumercomplaintsorquestions). M  #XXXXN#  In1988,theCommissionbeganrequiringthecigarettecompaniestoreportthetotalamountof % moneytheyspentadvertisingandpromotingsportsandsportingevents. 2  14      ׀Thisquestionisseparate  from,andduplicativeof,thereportingoftheindividualvariousadvertisingandpromotioncategories. p Forexample,moneyspentonamagazineadvertisementpromotingacigarettebrandedsports H tournamentopentothoseofallagesisreportedunderthecategory generalaudiencepublic   entertainmentandisalsoreportedasanexpenditureon sportsandsportingevents.Similarly, ] expendituresonsponsorshipofsportsteamsandindividualathletesarereportedunderthecategory 5  sponsorshipandarealsoreportedas sportsandsportingevents.Theseexpendituresareonly   countedonce,however,incomputingtheindustrystotaladvertisingandpromotionalexpenditures. !  For2003,themajordomesticcigarettecompaniesreportedthattheyspent$62.8milliononsports #X" andsportingevents,a42.8percentdecreasefromthe$109.7millionspentin2002. e   In2001,theCommissionbeganrequiringthemajorcigarettemanufacturerstoreport = expendituresXXXXonadvertisementsdirectedtoyouthortheirparentsthatareintendedtoreduceyouth  smoking.For#XXXXyV#2003,thecompaniesreportedspending$72.9milliononsuchadvertising. 2  15      ׀This   representsa1.8percentdecreasefromthe$74.2millionreportedin2002.  `   Cigarettemanufacturersreportedthattheypaidnomoneyorotherformofcompensationto  8  haveanycigarettebrandnamesortobaccoproductsappearinanymotionpicturesortelevision u  shows.Thispracticehasbeenreportedasunfundedsince1989.XXXXThecompaniesalsoreportedthat,in M  2003,theydidnotsolicittheappearanceofanycigaretteproductinanymotionpictureortelevision % show,orgrantpermissionfortheappearanceofanycigaretteproductinanymotionpictureor  televisionshow.#XXXXxY# p   Thedataoncigarette advertisingandpromotionalexpendituresreportedinTables2through H 2Cwerenotcollectedintheirpresentformuntil1975.Therefore,Table3reportscigarette   advertisingexpendituresfrom1963through1974. ]   Tables4and4Agivethedomesticmarketshareofcigaretteswithtarratingsof15milligrams 5 (mg.)orlessfortheyears1967through2003.Thedatafortheyearssince1982arefurtherbroken   downintosubcategoriesaccordingtotarratings,e.g.,3mg.orless,6mg.orless,etc.(categoriesare !  presentedcumulatively).In2003,cigaretteswithtarratingsof15mg.orlessconstituted84.9percent #X" ofthedomesticcigarettemarket.Cigaretteswithtarratingsof3mg.orless!thelowestrated %0!$ portionofthemarket!madeup1.0percentofthemarket. m'#&   AsshowninTables5and5A,filteredcigaretteshavedominatedthemarketsince_the E)$( Commissionbegancollectingthisinformationin1963.Filteredcigarettesheld99percentofthe e marketin2003. =   Tables6and6Aprovidethedomesticmarketshareofthevariouscigarettelengthcategories.  TheKingsize(7988mm.)categorycontinuestobethebiggestseller,with61percentofthemarket.   ThiscategoryisfollowedbytheLong(94101mm.)group,whichheld36percentofthemarketin  ` 2003.UltraLong(110121mm.)andRegular(6872mm.)cigarettesaccountedfortwopercentand  8  onepercent,respectively,ofthemarketin2003. u    Table7givesthemarketshareofmentholandnonmentholcigarettes.In2003,themarket M  shareofmentholcigaretteswas27percent,whilenonmentholsheld73percentofthemarket. %   Tables8and8Arelatetowhether tarratingsaredisplayedoncigarettepackaging.Table  8Ashows:(1)thepercentageoftheoverallcigarettemarketrepresentedbyvarietieswithdifferenttar p ratings,and(2)withineachtargroup,thepercentageofthosevarietiesthatdisclosestarratingson H theirpacks. 2  16      ׀Table8Ashowsthatcigarettevarietiesthatprintedtarratingsontheirpacks   representedonly1.2percentoftheoverallmarketin2003.Cigaretteswithtarratingsof811mg. ] represented43.3percentofthemarket;however,only0.8percentofthesecigarettesdisclosedtheir 5 ratingsonthepackin2003.Incontrast,79.8percentofcigarettesrated3mg.tarorlessdisclosed   theirratingsonthepackin2003,butthosecigarettesonlyaccountedfor0.6percentofthetotal !  market.  #X" XeXXXX8XXdXXd8* d dd Xdd Xdd X$$,00 ,00 ,'00 ,00 ,400 +  3) 03TABLE1 0 TOTALDOMESTICCIGARETTEUNITSALES  1XX(INBILLIONSOFINDIVIDUALCIGARETTES)#11g##XX1i# F<*" 0  0FYXYEAR 9/!" 9#XXhYj#1XTOTALSALESREPORTEDBY  CIGARETTE r  MANUFACTURERS* 9/!  " 9UNITCHANGE r  FROMPRIORYEAR 9/!  " 9%CHANGE r FROMPRIORYEAR 9/! " 9USDACIGARETTE r CONSUMPTIONESTIMATES11 e[' " 00  @19630@e#XX1 k#1X1963 }sB " @1963 @ $@516.5$@}516.5 [QC " $@516.5 $@ [Є 9/! " 9Є#11l#11 \R! " 33333_@523.933333_@\523.9#11n#11 }I " 33333_@523.9 00 33333_@ @19640@1964 }sB " @1964 @ @505.0@}505.0 ~tC " @505.0 @ '-11.5'~(11.5) }sC " '-11.5 ' -2.2}(2.2)#11o#11 }sB " -2.2  33333@511.233333@}511.2#11q#11 }I " 33333@511.2 00 33333@ @19650@1965 }sB " @1965 @ H@521.1H@}521.1 }sC " H@521.1 H@ 0@16.10@}16.1 {qB  " 0@16.1 0@  @3.2 @{3.2#11r#11 |rA !"  @3.2  @ @528.7@|528.7#11t#11 }I "" @528.7 00 @ @19660@1966 }sB  #" @1966 @ 33333@529.933333@}529.9 |rC  $" 33333@529.9 33333@ !@8.8!@|8.8 zpA  %" !@8.8 !@ 333333?1.7333333?z1.7#11u#11 |rA  &" 333333?1.7 333333? @541.2@|541.2#11w#11 }I  '" @541.2 00 @ @19670@1967 }sB (" @1967 @ fffff@535.8fffff@}_535.8_ |rC )" fffff@535.8 fffff@ @5.9@|5.9 zpA *" @5.9 @ ?1.1?z1.1#11x#11 |rA +" ?1.1 ? )@549.2)@|549.2#11,{#11 }I ," )@549.2 00 )@ @19680@1968 }sB  -" @1968 @ fffff@540.3fffff@}540.3 |rC  ." fffff@540.3 fffff@ @4.5@|4.5 yoA  /" @4.5 @  ?.8?y.8#11{#11 {q@  0"  ?.8 ?  @545.7 @{545.7#118~#11 }I  1"  @545.7 00  @ Ğ@19690Ğ@1969 }sB 2" Ğ@1969 Ğ@ 33333@527.933333@}527.9 ~tC 3" 33333@527.9 33333@ (-12.4(~(12.4) }sC 4" (-12.4 ( ffffff-2.3ffffff}(2.3)#11~#11 }sB 5" ffffff-2.3 ffffff 33333@528.933333@}528.9#11O#11 }I 6" 33333@528.9 00 33333@ Ȟ@19700Ȟ@1970 }sB 7" Ȟ@1970 Ȟ@ @534.2@}534.2 |rC 8" @534.2 @ 333333@6.3333333@|6.3 zpA 9" 333333@6.3 333333@ ?1.1?z1.1#11#11 |rA :" ?1.1 ? 33333À@536.433333À@|536.4#11^#11 }I ;" 33333À@536.4 00 33333À@ ̞@19710̞@1971 }sB <" ̞@1971 ̞@ @547.2@}547.2 }sC =" @547.2 @ *@13.0*@}13.0 {qB >" *@13.0 *@ 333333@2.4333333@{2.4#11!#11 |rA ?" 333333@2.4 333333@ X@555.1X@|555.1#11o#11 }I @" X@555.1 00 X@ О@19720О@1972 }sBA" О@1972 О@ @561.7@}561.7 }sCB" @561.7 @ -@14.5-@}14.5 {qBC" -@14.5 -@ @2.7@{2.7 |rAD" @2.7 @ fffff@566.8fffff@|566.8#112#11 }IE" fffff@566.8 00 fffff@ Ԟ@19730Ԟ@1973 }sBF" Ԟ@1973 Ԟ@ E@584.7E@}584.7 }sCG" E@584.7 E@ 7@23.07@}23.0 {qBH" 7@23.0 7@ ffffff@4.1ffffff@{4.1 |rAI" ffffff@4.1 ffffff@ m@589.7m@|589.7#11#11 }IJ" m@589.7 00 m@ ؞@19740؞@1974 }sBK" ؞@1974 ؞@ @594.5@}594.5 |rCL" @594.5 @ #@9.8#@|9.8 zpAM" #@9.8 #@ 333333?1.7333333?z1.7 |rAN" 333333?1.7 333333? @599.0@|599.0#11Ѝ#11 }IO" @599.0 00 @ ܞ@19750ܞ@1975 }sBP" ܞ@1975 ܞ@ ق@603.2ق@}603.2 |rCQ" ق@603.2 ق@ ffffff!@8.7ffffff!@|8.7 zpAR" ffffff!@8.7 ffffff!@ ?1.5?z1.5 |rAS" ?1.5 ? @607.2@|607.2#11#11 }IT" @607.2 00 @ @19760@1976 }sBU" @1976 @ 33333@609.933333@}609.9 |rCV" 33333@609.9 33333@ @6.7@|6.7 zpAW" @6.7 @ ?1.1?z1.1 |rAX" ?1.1 ? ,@613.5,@|613.5#11h#11 }IY" ,@613.5 00 ,@ @19770@1977 }sBZ" @1977 @ $@612.6$@}612.6 |rC[" $@612.6 $@ @2.7@|2.7 yoA\" @2.7 @  ?.4?y.4 {q@]"  ?.4 ? H@617.0H@{617.0#114#11 }I^" H@617.0 00 H@ @19780@1978 }sB_" @1978 @ fffff:@615.3fffff:@}615.3 |rC`" fffff:@615.3 fffff:@ @2.7@|2.7 yoAa" @2.7 @  ?.4?y.4 {q@b"  ?.4 ? @@616.0@@{616.0#11#11 }Ic" @@616.0 00 @@ @19790@1979 }sBd" @1979 @ fffffn@621.8fffffn@}621.8 |rCe" fffffn@621.8 fffffn@ @6.5@|6.5 zpAf" @6.5 @ ?1.1?z1.1 |rAg" ?1.1 ? l@621.5l@|621.5#11ƛ#11 }Ih" l@621.5 00 l@ @19800@1980 }sBi" @1980 @ @628.2@}628.2 |rCj" @628.2 @ @6.4@|6.4 zpAk" @6.4 @ ?1.0?z1.0 |rAl" ?1.0 ? @631.5@|631.5#11#11 }Im" @631.5 00 @ @19810@1981 }sBn" @1981 @ @636.5@}636.5 |rCo" @636.5 @  @8.3 @|8.3 zpAp"  @8.3  @ ?1.3?z1.3 |rAq" ?1.3 ? @640.0@|640.0#11^#11 }Ir" @640.0 00 @ @19820@1982 }sBs" @1982 @ ă@632.5ă@}632.5 }sCt" ă@632.5 ă@ -4.0}(4.0) {qBu" -4.0  333333-.6333333{(.6) |rAv" 333333-.6 333333 Ѓ@634.0Ѓ@|634.0#11*#11 }Iw" Ѓ@634.0 00 Ѓ@ @19830@1983 }sBx" @1983 @ ܂@603.6܂@}603.6 ~tCy" ܂@603.6 ܂@ fffff<-28.9fffff<~(28.9) }sCz" fffff<-28.9 fffff< ffffff-4.6ffffff}(4.6) }sB{" ffffff-4.6 ffffff @600.0@}600.0#11#11 }I|" @600.0 00 @ @19840@1984 }sB}" @1984 @ 33333@608.433333@}608.4 |rC~" 33333@608.4 33333@ 333333@4.8333333@|4.8 yoA" 333333@4.8 333333@  ?.8?y.8 {q@"  ?.8 ? 33333Â@600.433333Â@{600.4#11ҩ#11 }I" 33333Â@600.4 00 33333Â@ @19850@1985 }sB" @1985 @ fffff@599.3fffff@}599.3 }sC" fffff@599.3 fffff@ 333333"-9.1333333"}(9.1) |rB" 333333"-9.1 333333" -1.5|(1.5) }sB" -1.5  @594.0@}594.0#11#11 }I" @594.0 00 @ @19860@1986 }sB" @1986 @ 33333S@586.433333S@}586.4 ~tC" 33333S@586.4 33333S@ )-12.9)~(12.9) }sC" )-12.9 ) -2.2}(2.2) }sB" -2.2  fffff>@583.8fffff>@}583.8#11o#11 }I" fffff>@583.8 00 fffff>@  @19870 @1987 }sB "  @1987  @ 33333@575.433333@}575.4 ~tC " 33333@575.4 33333@ &-11.0&~(11.0) }sC " &-11.0 & ffffff-1.9ffffff}(1.9) }sB " ffffff-1.9 ffffff @575.0@}575.0#11F#11 }I " @575.0 00 @ @19880@1988 }sB!" @1988 @ @560.7@}560.7 ~tC!" @560.7 @ ffffff--14.7ffffff-~(14.7) }sC!" ffffff--14.7 ffffff- -2.6}(2.6) }sB!" -2.6  @562.5@}562.5#11#11 }I!" @562.5 00 @ @19890@1989 }sB"" @1989 @ l@525.6l@}525.6 ~tC"" l@525.6 l@ ̌A-35.1̌A~(35.1) }sC"" ̌A-35.1 ̌A 333333-6.3333333}(6.3) }sB"" 333333-6.3 333333 @540.0@}540.0#11#11 }I"" @540.0 00 @ @19900@1990 }sB# " @1990 @ ]@523.7]@}523.7 }sC# " ]@523.7 ]@ ffffff-1.9ffffff}(1.9) {qB# " ffffff-1.9 ffffff ٿ-.4ٿ{(.4) |rA# " ٿ-.4 ٿ h@525.0h@|525.0#11˺#11 }I# " h@525.0 00 h@ @19910@1991 }sB$!" @1991 @ fffff@510.9fffff@}510.9 ~tC$!" fffff@510.9 fffff@ )-12.8)~(12.8) }sC$!" )-12.8 ) 333333-2.4333333}(2.4) }sB$!" 333333-2.4 333333 @510.0@}510.0#11#11 }I$!" @510.0 00 @  @19920 @1992 }sB%""  @1992  @ fffff@506.4fffff@}506.4 }sC%"" fffff@506.4 fffff@ -4.5}(4.5) {qB%"" -4.5  -.9{(.9) |rA%"" -.9  @@500.0@@|500.0#11s#11 }I%"" @@500.0 00 @@ $@19930$@1993 }sB&#" $@1993 $@ fffff|@461.4fffff|@}461.4 ~tC&#" fffff|@461.4 fffff|@ F-45.0F~(45.0) }sC&#" F-45.0 F !-8.9!}(8.9) }sB&#" !-8.9 ! P~@485.0P~@}485.0#11D#11 }I&#" P~@485.0 00 P~@ (@19940(@1994 }sB'$" (@1994 (@ 33333~@490.233333~@}490.2 }sC'$" 33333~@490.2 33333~@ <@28.8<@}28.8 {qB'$" <@28.8 <@ @6.2@{6.2 |rA'$" @6.2 @ `~@486.0`~@|486.0#11#11 }I'$" `~@486.0 00 `~@ ,@19950,@1995 }sB(%" ,@1995 ,@ $~@482.3$~@}482.3 }sC(%" $~@482.3 $~@ -7.9}(7.9) |rB(%" -7.9  -1.6|(1.6) }sB(%" -1.6  p~@487.0p~@}487.0#11#11 }I(%" p~@487.0 00 p~@ 0@199600@ 1996 }sB)&" 0@1996 0@  A~@484.1A~@ }484.1 |rC)&" A~@484.1 A~@  ?1.8? |1.8 zpA)&" ?1.8 ?  ?0.4?z0.4 |rA)&" ?0.4 ? p~@487.0p~@|487.0#11#11 }I)&" p~@487.0 00 p~@ 4@199704@ 1997 }sB*'" 4@1997 4@  }@478.6}@ }478.6 }sC*'" }@478.6 }@  -5.5 }(5.5) |rB*'" -5.5   -1.1|(1.1) }sB*'" -1.1  ~@480.0~@}480.0#11#11 }I*'" ~@480.0 00 ~@ 8@199808@ 1998 }sB~+(" 8@1998 8@  |@458.6|@ }458.6 ~tC~+(" |@458.6 |@  4-20.14 ~(20.1) }sC~+(" 4-20.1 4  -4.2}(4.2) }sB~+(" -4.2  }@465.0}@}465.0#11^#11 }I~+(" }@465.0 00 }@ <@19990<@ 1999 }sBz,)" <@1999 <@  ̴y@411.3̴y@ }411.3 ~tCz,)" ̴y@411.3 ̴y@  G-47.2G ~(47.2) ~tCz,)" G-47.2 G  $-10.3$~(10.3) ~tCz,)" $-10.3 $ 0{@435.00{@~435.0#115#11 }Iz,)" 0{@435.0 00 0{@ @@20000@@ 2000 }sBv-*" @@2000 @@  fffffy@413.9fffffy@ }413.9 |rCv-*" fffffy@413.9 fffffy@  @2.6@ |2.6 yoAv-*" @2.6 @   333333?.6333333?y.6 {q@v-*"  333333?.6 333333? z@430.0z@{430.0YOMv-*" z@430.0 00 ' z@ Y#XX1m#YXX*0  #YY#CigarettessoldbymanufacturerstowholesalersandretailerswithintheU.S.andtoarmedforcespersonnelstationedoutside ., theU.S.#XXY1#YXXYY/,$$ #YY]##XXY>#YXX_ R0d- TRX3'Avery 5261 AddressX3'3'Letter261 AddressX%" ~@480.3'Letter5' XXX'g3:T*V^d (d00 00 '00 '00 400 4 $$,X00 ,X00 ,900 ,00 ,00 ,00 ,e00 +  3) 03#XXY#TABLE1A 0 TOTALDOMESTICCIGARETTEUNITSSOLDANDGIVENAWAY  1XX(INBILLIONSOFINDIVIDUALCIGARETTES)#XX1#   F<*" 0  0F1XYEAR 9/!  " 9UNITS 2 D SOLD* 9/! " 9UNITS   GIVEN 2 D AWAY** 9/! " 9TOTALNUMBER   SOLDANDGIVEN   AWAYASREPORTED 2 D BYMANUFACTURERS 9/! " 9UNIT  CHANGEINSOLD ^p ANDGIVEN    AWAY  ! FROMPRIOR 2 D" YEAR 9/! #" 9PERCENT $ CHANGEINSOLD ^p% ANDGIVEN  & AWAY  ' FROMPRIOR 2 D( YEAR 9/! )" 9USDA  , CIGARETTE  - CONSUMPTION 2 D. ESTIMATES e[' /" 00  D@20010D@ e2001 }sB 0" D@2001 D@  x@398.3x@ }398.3 |rC 1" x@398.3 x@  333333@3.9333333@ |3.9 |rA 2" 333333@3.9 333333@  x@398.3x@ |402.2 [QC 3" x@398.3 x@   [*** 9/! 4"  9*** \R! 5" z@425.0z@\425.0 }I 6" z@425.0 00 z@ H@20020H@ 2002 }sB 7" H@2002 H@  fffffw@376.4fffffw@ }376.4 }sC 8" fffffw@376.4 fffffw@  333333&@11.1333333&@ }11.1 }sB 9" 333333&@11.1 333333&@  fffff6x@387.4fffff6x@ }387.4 ~tC :" fffff6x@387.4 fffff6x@  --14.8- ~(14.8) }sC ;" --14.8 -   -3.7 }(3.7) }sB <"  -3.7   y@415.0y@}415.0 }I =" y@415.0 00 y@ L@20030L@ 2003 }sB >" L@2003 L@  v@360.5v@ }360.5 |rC ?" v@360.5 v@  ffffff@7.1ffffff@ |7.1 |rA @" ffffff@7.1 ffffff@  v@367.6v@ |367.6 ~tC A" v@367.6 v@  3-19.83 ~(19.8) }sC B" 3-19.8 3  ffffff-5.1ffffff}(5.1) }sB C" ffffff-5.1 ffffff y@400.0y@}400.0YOM D" y@400.0 00  y@ Y#XX1v#YXX   `     h #XXY&#1XX*0  CigarettessoldbymanufacturerstowholesalersandretailerswithintheU.S.andtoarmedforcespersonnel * (m stationedoutsidetheU.S.+(n$$ **  CigarettesgivenawaywithintheU.S.andtoarmedforcespersonnelstationedoutsidetheU.S.11 ,)o ***0  Priorto2001,theCommissiondidnotaskaboutcigarettesgivenaway,althoughsomecigarettesgivenawaymay F-X*p havebeenreportedassold.#XX1##XXXX# .+q$$ TRO'3Avery 5261 Address LandscapeX3'Avery 5261 Address'3Letter LandscapeLaser Ta Landscape3'Letter261 AddressX%" ~@480.TYXXYY  *RSd dX00 XX00 X900 900 00 00 e00 eV^H0H0,,,,,,,9,,9,9,9,,+  ,"  ,#XXY#1XX#11#(11  TABLE2    DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURESFORYEARS1970,19751985(DOLLARSINTHOUSANDS)* ND10B ,,    N 0&FX   0  %   %  '%3 ' '%3 ' '% 3 ' '% 3 ' '% 3 ' '% 3 ' '% 3 ' '%3 ' '%3 ' '%3 ' ?5%3  ?#(XPX(1#(X(XP3Ӏ @6  Ȟ@1970Ȟ@@1970 H>33 Ȟ@1970 Ȟ@ H1975 '3 '1976 '3 '1977 '3 '1978 '3 '1979 '3 '1980 '3 '1981 '3 '1982 '3 '1983 '3 '1984 '3 '1985 6,3  6        '!3 ' '"3 ' '#3 ' '$3 ' '%3 ' '&3 ' ''3 ' '(3 ' ')3 ' '*3 ' ?5+3  ?Newspapers  M_, $14,026  M_- $104,460 'M_.3 '$155,808 'M_/3 '$190,677 'M_03 '$186,947 'M_13 '$240,978 'M_23 '$304,380 'M_33 '$358,096 'M_43 '$282,897 'M_53 '$200,563 'M_63 '$193,519 'M_73 '$203,527 ?5M_83  ?  9 3.9%  : 21.3% ';3 '24.4% '<3 '24.5% '=3 '21.4% '>3 '22.2% '?3 '24.5% '@3 '23.1% 'A3 '15.8% 'B3 '10.6% 'C3 '9.2% 'D3 '8.2% 6,E3  6   F    G  ' H3 ' ' I3 ' ' J3 ' ' K3 ' ' L3 ' ' M3 ' ' N3 ' ' O3 ' ' P3 ' ' Q3 ' ?5 R3  ?Magazines  - ?S $50,018  - ?T $131,199 '- ?U3 '$148,032 '- ?V3 '$173,296 '- ?W3 '$184,236 '- ?X3 '$257,715 '- ?Y3 '$266,208 '- ?Z3 '$291,227 '- ?[3 '$349,229 '- ?\3 '$388,365 '- ?]3 '$425,912 '- ?^3 '$395,129 ?5- ?_3  ?   `  13.9%   a 26.6% ' b3 '23.2% ' c3 '22.2% ' d3 '21.1% ' e3 '23.8% ' f3 '21.4% ' g3 '18.8% ' h3 '19.5% ' i3 '20.4% ' j3 '20.3% ' k3 '16.0% 6, l3  6  m m   m n  'm o3 ' 'm p3 ' 'm q3 ' 'm r3 ' 'm s3 ' 'm t3 ' 'm u3 ' 'm v3 ' 'm w3 ' 'm x3 ' ?5m y3  ?Outdoor    z $7,338    { $84,329 '  |3 '$102,689 '  }3 '$120,338 '  ~3 '$149,010 '  3 '$162,966 '  3 '$193,333 '  3 '$228,081 '  3 '$266,925 '  3 '$295,226 '  3 '$284,927 '  3 '$300,233 ?5  3  ?    2.0%    17.2% ' 3 '16.1% ' 3 '15.4% ' 3 '17.0% ' 3 '15.0% ' 3 '15.6% ' 3 '14.7% ' 3 '14.9% ' 3 '15.5% ' 3 '13.6% ' 3 '12.1% 6, 3  6  M _    M _   'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' ?5M _ 3  ?Transit    $5,354    $10,852 ' 3 '$19,341 ' 3 '$21,530 ' 3 '$22,899 ' 3 '$21,151 ' 3 '$26,160 ' 3 '$21,931 ' 3 '$24,135 ' 3 '$26,652 ' 3 '$25,817 ' 3 '$33,136 ?5 3  ?    1.5%    2.2% ' 3 '3.0% ' 3 '2.8% ' 3 '2.6% ' 3 '2.1% ' 3 '2.0% ' 3 '1.4% ' 3 '1.3% ' 3 '1.4% ' 3 '1.2% ' 3 '1.3% 6, 3  6  -?    -?   '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' ?5-? 3  ?PointofSale    $11,663    $35,317 ' 3 '$44,176 ' 3 '$46,220 ' 3 '$57,384 ' 3 '$66,096 ' 3 '$79,799 ' 3 '$98,968 ' 3 '$116,954 ' 3 '$170,059 ' 3 '$167,279 ' 3 '$142,921 ?5 3  ?  m  3.2%  m  7.2% 'm 3 '6.9% 'm 3 '5.9% 'm 3 '6.6% 'm 3 '6.1% 'm 3 '6.4% 'm 3 '6.4% 'm 3 '6.5% 'm 3 '8.9% 'm 3 '8.0% 'm 3 '5.8% 6,m 3  6         ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3  ?PromotionalAllowances   $33,789   $72,018 '3 '$82,523 '3 '$108,227 '3 '$125,148 '3 '$137,111 '3 '$179,094 '3 '$229,077 '3 '$272,269 '3 '$366,153 '3 '$363,247 '3 '$548,877 ?53  ?  M_ 9.4%  M_ 14.7% 'M_3 '12.9% 'M_3 '13.9% 'M_3 '14.3% 'M_3 '12.7% 'M_3 '14.4% 'M_3 '14.8% 'M_3 '15.2% 'M_3 '19.3% 'M_3 '17.3% 'M_3 '22.2% 6,M_3  6         ' 3 ' ' 3 ' ' 3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?SamplingDistribution   $11,775   $24,196 '3 '$40,390 '3 '$47,683 '3 '$47,376 '3 '$64,286 '3 '$50,459 '3 '$81,522 '3 '$141,178 '3 '$125,968 ' 3 '$148,031 '!3 '$140,565 6,"3  6  -?# 3.3%  -?$ 4.9% '-?%3 '6.3% '-?&3 '6.1% '-?'3 '5.4% '-?(3 '5.9% '-?)3 '4.1% '-?*3 '5.3% '-?+3 '7.9% '-?,3 '6.6% '-?-3 '7.1% '-?.3 '5.7% 6,-?/3  6  0   1  '23 ' '33 ' '43 ' '53 ' '63 ' '73 ' '83 ' '93 ' ':3 ' ';3 ' ?5<3  ?SpecialtyItemDistribution  m= $5,652  m> $10,088 'm?3 '$20,030 'm@3 '$35,797 'mA3 '$48,281 'mB3 '$62,029 'mC3 '$69,248 'mD3 '$115,107 'mE3 '$95,246 'mF3 '$127,186 'mG3 '$140,431 'mH3 '$211,429 6,mI3  6   J 2.6%   K 2.1% ' L3 '3.1% ' M3 '4.6% ' N3 '5.5% ' O3 '5.7% ' P3 '5.6% ' Q3 '7.5% ' R3 '5.3% ' S3 '6.6% ' T3 '6.7% ' U3 '8.5% 6, V3  6  W   X  'Y3 ' 'Z3 ' '[3 ' '\3 ' ']3 ' '^3 ' '_3 ' '`3 ' 'a3 ' 'b3 ' ?5c3  ?PublicEntertainment  M_d $544  M_e $8,484 'M_f3 '$7,946 'M_g3 '$9,538 'M_h3 '$11,590 'M_i3 '$10,783 'M_j3 '$16,914 'M_k3 '$37,423 'M_l3 '$63,168 'M_m3 '$76,648 'M_n3 '$59,988 'M_o3 '$57,581 ?5M_p3  ?  q 0.2%  r 1.7% 's3 '1.3% 't3 '1.2% 'u3 '1.3% 'v3 '1.0% 'w3 '1.4% 'x3 '2.4% 'y3 '3.5% 'z3 '4.0% '{3 '2.9% '|3 '2.3% 6,}3  6  ~     '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?Other**  Zl $220,841  Zl $10,311 'Zl3 '$18,182 'Zl3 '$26,157 'Zl3 '$42,100 'Zl3 '$60,310 'Zl3 '$56,694 'Zl3 '$86,226 'Zl3 '$181,813 'Zl3 '$123,951 'Zl3 '$286,035 'Zl3 '$443,043 ?5Zl3  ?    61.1%    2.0% ' 3 '2.8% ' 3 '3.4% ' 3 '4.8% ' 3 '5.6% ' 3 '4.6% ' 3 '5.6% ' 3 '10.1% ' 3 '6.5% ' 3 '13.7% ' 3 '17.9% 6, 3  6       '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?Total  :L $361,000  :L $491,254 ':L3 '$639,117 ':L3 '$779,463 ':L3 '$874,971 ':L3 '$1,083,425 ':L3 '$1,242,289 ':L3 '$1,547,658 ':L3 '$1,793,814 ':L3 '$1,900,771 ':L3 '$2,095,231 ':L3 '$2,476,441 6,:L3  6 >4  ?100.0?>100% mc1 ?100.0 ? ?100?m100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100%SIG3 ?100  $ ? S#(##XXE#1XX#XX1H#YXX*0  Becauseofrounding,sumsofpercentagesmaynotequal100percent.*!<H0H0 **0  IncludesTVandRadioadvertisingexpendituresof$207,324,000and$12,492,000,respectively,for1970.BroadcastadvertisingwasbannedafterJanuary1,1971. ! Expendituresfordirectmail,endorsements,testimonials,andaudiovisualareincludedinthe AllOtherscategorytoavoiddisclosureofindividualcompanydata.#XXYI#1XX "H0H0 #XX1#K#X1XX%eS*P d %d99999999RSH0H0P,4,,,,,,,,9,9,+  5+  5(11#(XPX(1K#( X(XP@@3#(XPX( N#(1X(XPTABLE2A  DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURESFORYEARS19861995(DOLLARSINTHOUSANDS)*#(XPX(1!O##XXX(XPN#(XPXXX(1X(XP 9/ "    x9  ~   ~  '~3 ' '~3 ' '~3 ' '~3 ' '~ 3 ' '~ 3 ' '~ 3 ' '~ 3 ' ?5~ 3 x ?#(XPX(1)P#( X(XPԀ @6  @1986@@#(XPX( NR#(X(XP1986 aW* @1986 @  @1987 @a1987 H>33  @1987  @ H1988 '3 '1989 '3 '1990 '3 '1991 '3 '1992 '3 '1993 '3 '1994 '3 '1995 6,3  x6#(XPX(R#( X(XP   #(XPX( +U#(X(XP    '3 ' '3 ' '3 ' '3 ' '3 ' ' 3 ' '!3 ' '"3 ' ?5#3 x ?#(XPX(ɂU#(X(XPNewspapers   2$ #(XPX(YW#(X(XP$119,629   2% $95,810 ' 2&3 '$105,783 ' 2'3 '$76,993 ' 2(3 '$71,174 ' 2)3 '$48,212 ' 2*3 '$35,467 ' 2+3 '$36,220 ' 2,3 '$24,143 ' 2-3 '$19,122 ?5 2.3  ?#(XPX(W#(X(XP  / #(XPX(Y#(X(XP5.0%  0 3.7% '13 '3.2% '23 '2.1% '33 '1.8% '43 '1.0% '53 '0.7% '63 '0.6% '73 '0.5% '83 '0.4% 6,93  x6#(XPX(BZ#(X(XP  `r: #(XPX(8\#(X(XP  `r;  '`r<3 ' '`r=3 ' '`r>3 ' '`r?3 ' '`r@3 ' '`rA3 ' '`rB3 ' '`rC3 ' ?5`rD3 x ?#(XPX(ɏ\#(X(XPMagazines  E #(XPX(f^#(X(XP$340,160  F $317,748 'G3 '$355,055 'H3 '$380,393 'I3 '$328,143 'J3 '$278,110 'K3 '$237,061 'L3 '$235,253 'M3 '$251,644 'N3 '$248,848 6,O3  6#(XPX(^#(X(XP  xP #(XPX(`#(X(XP 14.3%  xQ 12.3% 'xR3 '10.8% 'xS3 '10.5% 'xT3 '8.2% 'xU3 '6.0% 'xV3 '4.5% 'xW3 '3.9% 'xX3 '5.2% 'xY3 '5.1% 6,xZ3  x6#(XPX(Pa#(X(XP   *[ #(XPX(Mc#(X(XP   *\  ' *]3 ' ' *^3 ' ' *_3 ' ' *`3 ' ' *a3 ' ' *b3 ' ' *c3 ' ' *d3 ' ?5 *e3 x ?#(XPX(ɤc#(X(XPOutdoor   f #(XPX({e#(X(XP$301,822   g $269,778 ' h3 '$319,293 ' i3 '$358,583 ' j3 '$375,627 ' k3 '$386,165 ' l3 '$295,657 ' m3 '$231,481 ' n3 '$240,024 ' o3 '$273,664 6, p3  6#(XPX(e#(X(XP  D Vq #(XPX(h#(X(XP12.7%  D Vr 10.5% 'D Vs3 '9.7% 'D Vt3 '9.9% 'D Vu3 '9.4% 'D Vv3 '8.3% 'D Vw3 '5.7% 'D Vx3 '3.8% 'D Vy3 '5.0% 'D Vz3 '5.6% 6,D V{3  x6#(XPX(`h#(X(XP   | #(XPX(Xj#(X(XP   }  ' ~3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3 x ?#(XPX(ɯj#(X(XPTransit  \ n #(XPX(Ɇl#(X(XP$34,725  \ n $35,822 '\ n3 '$44,379 '\ n3 '$52,294 '\ n3 '$60,249 '\ n3 '$60,163 '\ n3 '$53,293 '\ n3 '$39,117 '\ n3 '$29,323 '\ n3 '$22,543 ?5\ n3  ?#(XPX(l#(X(XP     #(XPX( o#(X(XP1.5%     1.4% '  3 '1.4% '  3 '1.4% '  3 '1.5% '  3 '1.3% '  3 '1.0% '  3 '0.6% '  3 '0.6% '  3 '0.5% 6,  3  x6#(XPX(jo#(X(XP    #(XPX(`q#(X(XP     ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3 x ?#(XPX(ɷq#(X(XPPointofSale   &  #(XPX(Ɏs#(X(XP$135,541   &  $153,494 ' & 3 '$222,289 ' & 3 '$241,809 ' & 3 '$303,855 ' & 3 '$344,580 ' & 3 '$366,036 ' & 3 '$400,943 ' & 3 '$342,650 ' & 3 '$259,035 ?5 & 3  ?#(XPX(s#(X(XP    #(XPX("v#(X(XP5.7%    5.9% ' 3 '6.8% ' 3 '6.7% ' 3 '7.6% ' 3 '7.4% ' 3 '7.0% ' 3 '6.6% ' 3 '7.1% ' 3 '5.3% 6, 3  x6#(XPX(ɂv#(X(XP  Tf  #(XPX(xx#(X(XP  Tf   'Tf 3 ' 'Tf 3 ' 'Tf 3 ' 'Tf 3 ' 'Tf 3 ' 'Tf 3 ' 'Tf 3 ' 'Tf 3 ' ?5Tf 3 x ?#(XPX(x#(X(XPPromotionalAllowances    #(XPX(ɦz#(X(XP$630,036    $702,430 ' 3 '$879,703 ' 3 '$999,843 ' 3 '$1,021,427 ' 3 '$1,156,280 ' 3 '$1,514,026 ' 3 '$1,557,635 ' 3 '$1,678,917 ' 3 '$1,865,657 ?5 3  ?#(XPX({#(X(XP  l~  #(XPX(O}#(X(XP26.4%  l~  27.2% 'l~ 3 '26.9% 'l~ 3 '27.6% 'l~ 3 '25.6% 'l~ 3 '24.9% 'l~ 3 '28.9% 'l~ 3 '25.8% 'l~ 3 '34.7% 'l~ 3 '38.1% 6,l~ 3  x6#(XPX(ɯ}#(X(XP     #(XPX(ɯ#(X(XP      '  3 ' '  3 ' '  3 ' '  3 ' '  3 ' '  3 ' '  3 ' '  3 ' ?5  3 x ?#(XPX(#(X(XPSamplingDistribution    #(XPX(݁#(X(XP$98,866    $55,020 ' 3 '$74,511 ' 3 '$57,771 ' 3 '$100,893 ' 3 '$56,970 ' 3 '$49,315 ' 3 '$40,202 ' 3 '$6,974 ' 3 '$13,836 ?5 3  ?#(XPX(R#(X(XP  $6 #(XPX(o#(X(XP4.1%  $6 2.1% '$63 '2.3% '$63 '1.6% '$63 '2.5% '$63 '1.2% '$63 '0.9% '$63 '0.7% '$63 '0.1% '$63 '0.3% 6,$63  x6#(XPX(τ#(X(XP   #(XPX(ņ#(X(XP    '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ' 3 ' ?5 3 x ?#(XPX(#(X(XPSpecialtyItemDistribution  <N  #(XPX(#(X(XP$210,128  <N  $391,351 '<N 3 '$190,003 '<N3 '$262,432 '<N3 '$307,037 '<N3 '$184,348 '<N3 '$339,997 '<N3 '$755,780 '<N3 '$850,810 '<N3 '$665,173 ?5<N3  ?#(XPX(n#(X(XP   #(XPX(ɕ#(X(XP8.8%   15.2% '3 '5.8% '3 '7.3% '3 '7.7% '3 '4.0% '3 '6.5% '3 '12.5% '3 '17.6% '3 '13.6% 6, 3  x6#(XPX(#(X(XP  |! #(XPX(#(X(XP  |"  '|#3 ' '|$3 ' '|%3 ' '|&3 ' '|'3 ' '|(3 ' '|)3 ' '|*3 ' ?5|+3 x ?#(XPX(F#(X(XPPublicEntertainment  , #(XPX(#(X(XP$71,439  - $71,389 '.3 '$88,072 '/3 '$92,120 '03 '$125,094 '13 '$118,622 '23 '$89,739 '33 '$84,276 '43 '$81,292 '53 '$110,669 6,63  6#(XPX(ɑ#(X(XP  7 #(XPX(ɨ#(X(XP3.0%  8 2.8% '93 '2.7% ':3 '2.5% ';3 '3.1% '<3 '2.6% '=3 '1.7% '>3 '1.4% '?3 '1.7% '@3 '2.3% 6,A3  x6#(XPX(#(X(XP  4FB #(XPX(#(X(XP  4FC  '4FD3 ' '4FE3 ' '4FF3 ' '4FG3 ' '4FH3 ' '4FI3 ' '4FJ3 ' '4FK3 ' ?54FL3 x ?#(XPX(U#(X(XPDirectMail  M #(XPX(,#(X(XP$187,057  N $187,931 'O3 '$42,545 'P3 '$45,498 'Q3 '$51,875 'R3 '$65,002 'S3 '$34,345 'T3 '$31,463 'U3 '$31,187 'V3 '$34,618 ?5W3  ?#(XPX(ɗ#(X(XP  L^X #(XPX(ɶ#(X(XP7.9%  L^Y 7.3% 'L^Z3 '1.3% 'L^[3 '1.3% 'L^\3 '1.3% 'L^]3 '1.4% 'L^^3 '0.7% 'L^_3 '0.5% 'L^`3 '0.7% 'L^a3 '0.7% 6,L^b3  6#(XPX(#(X(XP  c #(XPX( #(X(XP  d  'e3 ' 'f3 ' 'g3 ' 'h3 ' 'i3 ' 'j3 ' 'k3 ' 'l3 ' ?5m3 ?#(XPX(c#(X(XPEndorsements&Testimonials  n #(XPX(:#(X(XP$384  o $376 'p3 '$781 'q3 '$0 'r3 '$0#(XPX(ɵ#(X(XP#( P#( 's3 '$0#(ܟ#(#(XPX(ɚ#(X(XP 't3 '$0#(XPX(ɉ#(X(XP#(G#( 'u3 '$0#(6#(#(XPX(#(X(XP 'v3 '$0#(XPX(#(X(XP#(ɡ#( 'w3 '$0#(ɐ#(#(XPX(N#(X(XP ?5x3  ?#(XPX(=#(X(XP  >Py #(XPX(ɾ#(X(XP0.0%  >Pz 0.0% '>P{3 '0.0% '>P|3 '0.0%#(XPX(#(X(XP#(#( '>P}3 '0.0%#(XPX(ܤ#(X(XP#(#( '>P~3 '0.0%#(XPX(ɋ#(X(XP#(ͥ#( '>P3 '0.0%#(XPX(:#(X(XP#(|#( '>P3 '0.0%#(XPX(#(X(XP#(+#( '>P3 '0.0%#(XPX(ɘ#(X(XP#(ڧ#( '>P3 '0.0%#(XPX(G#(X(XP#(ɉ#( 6,>P3  x6#(XPX(#(X(XP   #(XPX(ɰ#(X(XP    '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53 x ?#(XPX(#(X(XPCoupons&RetailValueAdded  Vh #(XPX(ޫ#(X(XP*#(XPX(Z#(X(XP* 'Vh3 '#(XPX(ɝ#(X(XP** 'Vh3 '$874,127 'Vh3 '$959,965 'Vh3 '$1,183,798 'Vh3 '$1,882,905 'Vh3 '$2,175,373 'Vh3 '$2,559,387 'Vh3 '$1,248,896 'Vh3 '$1,348,378 ?5Vh3  ?#(XPX(#(X(XP   #(XPX(#(X(XP    '3 '26.7% '3 '26.5% '3 '29.6% '3 '40.4% '3 '41.6% '3 '42.4% '3 '25.8% '3 '27.5% 6,3  x6#(XPX(p#(X(XP   #(XPX(f#(X(XP    '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53 x ?#(XPX(ɽ#(X(XPOther***    #(XPX(ɔ#(X(XP$252,570    $299,355 ' 3 '$78,366 ' 3 '$89,290 ' 3 '$62,917 ' 3 '$68,758 ' 3 '$41,608 ' 3 '$63,680 ' 3 '$47,672 ' 3 '$33,680 ?5 3  ?#(XPX(#(X(XP   #(XPX(#(X(XP10.0%   11.6% '3 '2.4% '3 '2.5% '3 '1.6% '3 '1.5% '3 '0.8% '3 '1.2% '3 '1.0% '3 '0.7% 6,3  x6#(XPX({#(X(XP   #(XPX(s#(X(XP    '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53 x ?#(XPX(ʸ#(X(XPTotal  BT #(XPX(ɡ#(X(XP$2,382,357  BT $2,580,504 'BT3 '$3,274,853 'BT3 '$3,616,993 'BT3 '$3,992,008 'BT3 '$4,650,114 'BT3 '$5,231,917 'BT3 '$6,035,437 'BT3 '$4,833,532 'BT3 '$4,895,223 <2BT3  < B8 ?100?B100% ka/ ?100 ? ?100?k100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100%SIG3 ?100  , ? S#(8##XX#1XX9 X,` X:X XX9#XX1)#YXX*0  Becauseofrounding,sumsofpercentagesmaynotequal100percent. H0H0 **0  Priorto1987,theCommissiondidnotspecificallycollectinformationonCoupons&RetailValueAdded.!H0H0 #XXY#YXX***0  Expendituresforaudiovisualareincludedinthe AllOtherscategorytoavoiddisclosureofindividualcompanydata.>"PH0H0 #XXY#9HOXXXXOxXOX  "  %e %TRX3'Avery 5261 AddressO'3Avery 5261 Address Landscape3'Letter' '`r@3 ' '`r'3Letter LandscapeLaser Ta LandscapeT %  ** Fd -d449999 $$*,_ ,,,,,f,+  ," , #1Ox#(11  TABLE2B  DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURES v FORYEARS19962001(DOLLARSINTHOUSANDS)#(XPX(1#* ND1:L @/   N 4*   4 4*   4 0&Ug   0( X(XP  "4   "4  '"43 ' '"43 ' '"4 3 ' '"4 3 ' ?5"4 3  ?8Ӏ    1996    1997 '3 '1998 '3 '1999 I?3 @@2000@@I2000 j`33 @@2000 @@ D@2001D@j2001 WM>3 D@2001  D@ xW       '3 ' '3 ' '3 ' '3 ' ?53 x ?Newspapers    $14,067    $16,980 ' 3 '$29,444 ' 3 '$50,952 ' 3 '$51,652 ' 3 '$31,676 6,  3  6  ! 0.3%  " 0.3% '#3 '0.4% '$3 '0.6% '%3 '0.5% '&3 '0.3% 6,'3  x6  ` r(   ` r)  '` r*3 ' '` r+3 ' '` r,3 ' '` r-3 ' ?5` r.3 x ?Magazines   / $243,046   0 $236,950 ' 13 '$281,296 ' 23 '$377,364 ' 33 '$294,916 ' 43 '$172,853 ?5 53  ?   6  4.8%   7 4.2% ' 83 '4.2% ' 93 '4.6% ' :3 '3.1% ' ;3 '1.5% 6, <3  x6  8 J=   8 J>  '8 J?3 ' '8 J@3 ' '8 JA3 ' '8 JB3 ' ?58 JC3 x ?Outdoor   D $292,261   E $295,334 ' F3 '$294,721 ' G3 '$53,787 ' H3 '$9,262 ' I3 '$8,241 ?5 J3  ?  ` r K 5.7%  ` r L 5.2% '` r M3 '4.4% '` r N3 '0.7% '` r O3 '0.1% '` r P3 '0.1% 6,` r Q3  x6   " R    " S  ' " T3 ' ' " U3 ' ' " V3 ' ' " W3 ' ?5 " X3 x ?Transit   Y $28,865   Z $26,407 ' [3 '$40,158 ' \3 '$5,573 ' ]3 '$4 ' ^3 '$0 ?5 _3  ?  8J ` 0.6%  8J a 0.5% '8J b3 '0.6% '8J c3 '0.1% '8J d3 '0.0% '8J e3 '0.0% 6,8J f3  x6   g    h  ' i3 ' ' j3 ' ' k3 ' ' l3 ' ?5 m3 x ?PointofSale  `r n $252,619  `r o $305,360 '`r p3 '$290,739 '`r q3 '$329,429 '`r r3 '$347,038 '`r s3 '$284,319 ?5`r t3  ?  " u 4.9%  " v 5.4% '" w3 '4.3% '" x3 '4.0% '" y3 '3.6% '" z3 '2.5% 6," {3  x6   |    }  ' ~3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3 x ?PromotionalAllowances  8J $2,150,838  8J $2,438,468 '8J3 '$2,878,919 '8J3 '$3,542,950 '8J3 '$3,913,997 '8J3 '$4,452,709 6,8J3  6   42.1%   43.1% '3 '42.8% '3 '43.0% '3 '40.8% '3 '39.7% 6,3  x6       '3 ' '3 ' '3 ' '3 ' ?53 x ?SamplingDistribution  " $15,945  " $22,065 '"3 '$14,436 '"3 '$33,711 '"3 '$22,330 '"3 '$17,175 ?5"3  ?   0.3%   0.4% '3 '0.2% '3 '0.4% '3 '0.2% '3 '0.2% 6,3  x6  p   p  'p3 ' 'p3 ' 'p3 ' 'p3 ' ?5p3 x ?SpecialtyItemDistribution   $544,345   $512,602 '3 '$355,835 '3 '$335,680 '3 '$327,826 '3 '$333,394 ?53  ?   10.7%   9.6% '3 '5.3% '3 '4.1% '3 '3.4% '3 '3.0% 6,3  x6  HZ   HZ  'HZ3 ' 'HZ3 ' 'HZ3 ' 'HZ3 ' ?5HZ3 x ?PublicEntertainment   $171,177   $195,203 '3 '$248,536 '3 '$267,379 '3 '$309,610 '3 '$312,366 6,3  6  p 3.4%  p 3.4% 'p3 '3.7% 'p3 '3.3% 'p3 '3.2% 'p3 '2.8% 6,p3  x6   2    2  ' 23 ' ' 23 ' ' 23 ' ' 23 ' ?5 23 x ?DirectMail   $38,703   $37,310 '3 '$57,772 '3 '$94,610 '3 '$92,902 '3 '$133,947 ?53  ?  HZ 0.8%  HZ 0.7% 'HZ3 '0.9% 'HZ3 '1.2% 'HZ3 '1.0% 'HZ3 '1.2% 6,HZ3  x6         ' 3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3 x ?Endorsements&Testimonials  p $0  p $0 'p3 '$0 'p3 '$0 'p3 '$0 'p3 '$0 ?5p3  ?   2 0.0%   2 0.0% ' 23 '0.0% ' 23 '0.0% ' 23 '0.0% ' 23 '0.0% 6, 23  x6       '3 ' '3 ' '3 ' '3 ' ?53 x ?Coupons "xxx HZ "$1,308,708#Y( #( Y**  25.6%#Y( #( Y >4)Xj3xxx >$552,550 'HZ3 '$624,199 'HZ3 '$531,004 'HZ3 '$705,299 'HZ 3 '$602,110 6,HZ 3  6 "    " !    !9.8% '  3 '9.3% '  3 '6.5% ' 3 '7.4% ' 3 '5.4% 6, 3  6   #Y( ?#( Y !  ! '3 ' '3 ' '3 ' '3 ' ?53 ?RetailValueAdded " Xj "#Y( #( Y ! Xj !$970,363 'Xj3 '$1,555,391 'Xj3 '$2,559,883 'Xj3 '$3,453,446 'Xj3 '$4,761,792 6,Xj3  6 "  " !  !17.1% '3 '23.1% '3 '31.1% ' 3 '36.0% '!3 '42.5% 6,"3  x6  #   $  '%3 ' '&3 ' ''3 ' '(3 ' ?5)3 x ?Internet  0 B* $432  0 B+ $215 '0 B,3 '$125 '0 B-3 '$651 '0 B.3 '$949 '0 B/3 '$841 6,0 B03  6   1 0.0%   2 0.0% ' 33 '0.0% ' 43 '0.0% ' 53 '0.0% ' 63 '0.0% 6, 73  x6  !8   !9  '!:3 ' '!;3 ' '!<3 ' '!=3 ' ?5!>3 x ?Other***  "? $46,696  "@ $50,207 '"A3 '$61,584 '"B3 '$54,658 '"C3 '$63,395 '"D3 '$104,797 6,"E3  6  "F 0.9%  "G 1.0% '"H3 '0.9% '"I3 '0.7% '"J3 '0.7% '"K3 '0.9% 6,"L3  x6  h#z M   h#z N  'h#z O3 ' 'h#z P3 ' 'h#z Q3 ' 'h#z R3 ' ?5h#z S3 x ?Total  # T $5,107,700  # U $5,660,014 '# V3 '$6,733,157 '# W3 '$8,237,631 '# X3 '$9,592,627 '# Y3 '$11,216,220 <2# Z3  < B8$![ ?100?B100% ka/$!\ ?100 ? ?100?k100% tj8$!]3 ?100 ? ?100?t100% tj8$!^3 ?100 ? ?100?t100% tj8$!_3 ?100 ? ?100?t100% tj8$!`3 ?100 ? ?100?t100%SIG$!a3 ?100  5 ? S#(XPX( ##XXX(XPn#1XX#XX1G #YXXB X` X X,` X:XB*0  Becauseofrounding,sumsofpercentagesmaynotequal100percent.#XXY #YXX,)k$$ **0  Priorto1997,CouponsandRetailValueAddedwerereportedasasinglecategory.-*l$$ #XXYg #YXX***0  Expendituresforaudiovisualareincludedinthe AllOtherscategorytoavoiddisclosureofindividualcompanydata.H.Z+m$$ #XXYF #YXX  . ,n S    *_`Fd6Fd_ _ ff $$, ,F,R, R+  ," , ( Y  TABLE2C  DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURES ` FORYEARS2002AND2003(DOLLARSINTHOUSANDS)*#(XPX( 3 #(1X(XP =3     T= 0&D T  0#(XPX(1-#_(X(XP @6  H@2002H@@2002#(@#( pf33 H@2002 H@ L@2003L@p#(r#/; 2003# /;$#( TJ93 L@2003 L@ T <2# 3  T<  6   -#6 3 - 3)6 3 3 E;#6 3 T ENewspapers  b G=  @25538P@G#(j#/; $25,538# /;h#( wm:3P @25538 @ @8251P@w#(ɱ#/; K( 4 <DL X` XK$8,251# /;j#( TJ93P @8251 @ PT <2#3P  < E; ( Mb`?0.2Mb`?E0.2% tj8(3 Mb`?0.2 Mb`? MbP?0.1MbP?t0.1%#(#( SI8(3 MbP?0.1 MbP? S <2#(3  T< $ B $ 3)B3 P3 3)B3P P3 E;#B3P T EMagazines   H>   @@106852P@@H#(ɐ#/; $106,852# /;#( zp; 3P @@106852 @@ PA156394PPAz#(#/; <( 4 <DLX<$156,394# /;#( VL; 3P PA156394 PA PV <2# 3P  < $  4 P$0.9%#(%#( 3) 43P P31.0%#(!##XX#(XPXXX(X(XP 3) 4 3P P3 <2# 4!3P  T< $ V " P$#(ɽ#( 3)V #3P P3 3)V $3P P3 E;#V %3P T EOutdoor G=  && @24192P@G#(ɱ#/; $24,192# /;#( xn: &'3P @24192 @ @32599P@x#(5#/; <( 4 <DLX<$32,599# /;#( UK: &(3P @32599 @ PU <2# &)3P  < $ H * P$0.2%#(t#( SIH +3P  Mb`?.2Mb`?S#(o #(0.2% RH7H ,3  Mb`?.2 Mb`? R <2#H -3  T< $  b. P$ 3) b/3P P3 3) b03P P3 E;# b13P T ETransit 8. : 2 # P8$0 ZP+: 33P #  # PZ#(!#/; $0# /;B##( F<+: 43P #  PF <2#: 53P  < 8.  T 6 # 80.0% F<+ T 73 #  PF0.0%#(Ɇ###XX#(XPXXX(X(XP 3) T 83P P3 <2# T 93P  T<  $ v : $ 3)v ;3 P3 3)v <3P P3 E;#v =3P T EPointofSale H>  F > 0A260902P0AH#($#/; $260,902# /;&#( zp; F ?3P 0A260902 0A (6A165573P(6Az#(='#/; <( 4 <DLX<$165,573# /;'#( VL; F @3P (6A165573 (6A PV <2# F A3P  < E; h B /$?2.1/$?E2.1% SI8h C3 /$?2.1 /$? PS1.1%#((##XX%#(XPXXX(X(XP 3)h D3P P3 <2#h E3P  T< $  F $ 3) G3 P3 3) H3P P3 <2# I3P T < $ Z J $ 3)Z K3 P3 3)Z L3P P3 E;#Z M3P EPriceDiscounts  b I? Z N J ^A7873835PJ ^AI#(*#/; $7,873,835# /;,#( }s<Z O3P J ^A7873835 J ^A udA10808239PudA}#(7-#/; <( 4 <DLX<$10,808,239# /;-#( XN=Z P3P udA10808239 udA PX <2#Z Q3P  < $ t R P$63.2%#(.#( 3)t S3P P371.4%#(~/##XX5*#(XPXXX(X(XP 3)t T3P P3 <2#t U3P  T< $  V P$ 3) W3P P3 3) X3P P3 E;# Y3P T E PromotionalAllowances!Retailers I? f Z iW4A1333097PiW4AI#(0#/; $1,333,097# /;.2#( |r<f [3P iW4A1333097 iW4A 2A1229327P2A|#(z2#/; <( 4 <DLX<$1,229,327# /;83#( WM<f \3P 2A1229327 2A PW <2#f ]3P  < F< ^ 1Zd?10.71Zd?F10.7% TJ9_3 1Zd?10.7 1Zd? PT8.1%#(3##XX:0#(XPXXX(X(XP 3)`3P P3 <2#a3P  T< $ &b $ 3)&c3 P3 3)&d3P P3 E;#&e3P T EPromotionalAllowances!Wholesalers H> zf =A446327P=AH#([5#/; $446,327# /;i7#( zp;zg3P =A446327 =A v$A683067Pv$Az#(ɳ7#/; <( 4 <DLX<$683,067# /;o8#( VL;zh3P v$A683067 v$A PV <2#zi3P  <    b   E; j #( G=$w3P # G#(C?#(0.0% F<+$x3 #  F <2#$y3  T< $ Fz P$ 3)F{3P P3 3)F|3P P3 E;#F}3P T ESamplingDistribution#(?# G= ~ @@28777P@@G/; $28,777# /;A# xn:3P @@28777 @@ @o@17853P@o@x/; <( 4 <DLX<$17,853# /;B# UK:3P @o@17853 @o@ PU <2#3P  < $ 8 P$0.2% 3)83P P30.1%#XXz5#XX 3)83P P3 <2#83P  T< $ R P$ 3)R3P P3 3)R3P P3 <2#R3P T <SpecialtyItemDistribution!Branded G= * !@49423P!@G/; $49,423# /;E# wm:*3P !@49423 !@ @9195P@w/; <( 4 <DLX<$9,195# /;F# TJ9*3P @9195 @ PT <2#*3P  < D: D  Mbp?.4Mbp?D0.4% RH7D3  Mbp?.4 Mbp? PR0.1%#XXD#XX 3)D3P P3 <2#D3P  T< $ f $ 3)f3 P3 3)f3P P3 <2#f3P T <SpecialtyItemDistribution(ԀNonBranded H> 6 CA174201PCAH#(I#/; $174,201# /;wJ#( zp;63P CA174201 CA `A254956P`Az#(J#/; <( 4 <DLX<$254,956# /;}K#( VL;63P `A254956 `A PV <2#63P  < $ X P$1.4%#(L#( TJX3P  rh?1.7 rh?T#(L#(1.7% SI8X3  rh?1.7  rh? S <2#X3  T< $ r P$ 3)r3P P3 3)r3P P3 E;#r3P T EPublicEntertainment#(ɕM#(Ԁ!AdultOnly  H> J @ A219016P@ AH#(MO#/; $219,016# /;O#( zp;J3P @ A219016 @ A HkA150889PHkAz#(=P#/; <( 4 <DLX<$150,889# /;P#( VL;J3P HkA150889 HkA PV <2#J3P  < $ d P$1.8%#(Q#( TJd3P {Gz?1.0{Gz?T#({R#(1.0% SI8d3 {Gz?1.0 {Gz? S <2#d3  T< $  P$#(S#( 3)3P P3 3)3P P3 <2#3P T <PublicEntertainment#( T#(Ԁ!GeneralAudience G= V  @34089P @G#(U#/; $34,089# /;U#( xn:V3P  @34089  @  @32849P @x#(U#/; <( 4 <DLX<$32,849# /;V#( UK:V3P  @32849  @ PU <2#V3P  < D: x  ~jth?.3~jth?D0.3% rh7x3  ~jth?.3 ~jth?  Mb`?.2Mb`?r#()W#(0.2% RH7x3  Mb`?.2 Mb`? R <2#x3  T< $  $ 3)3 P3 3)3P P3 E;#3P T ESponsorships  b   G= j |@54247P|@G#(ɶX#/; $54,247# /;Z#( xn:j3P |@54247 |@ @31371P@x#([#/; <( 4 <DLX<$31,371# /;[#( UK:j3P @31371 @ PU <2#j3P  < D:   Mbp?.4Mbp?D0.4% rh73  Mbp?.4 Mbp?  Mb`?.2Mb`?r#(X\#(0.2% RH73  Mb`?.2 Mb`? R <2#3  T< $ " $ 3)"3 P3 3)"3P P3 <2#"3P T <Endorsements&Testimonials#(]#( b 8. v # P8$0 ZP+v3P #  # PZ#(ɚ_#/; $0# /;|`#( F<+v3P #  PF <2#v3P  < 8.  # 80.0% F<+3 #  PF0.0%#(`##XXpH#(XPXXX(X(XP 3)3P P3 <2#3P  T<  $ 6  $ 3)6 3 P3 3)6 3P P3 E;#6 3P T EDirectMail#(-b#(  b   H>   p-@111319Pp-@H#(c#/; $111,319# /;d#( yo; 3P p-@111319 p-@  @92978P @y#(d#/; <( 4 <DLX<$92,978# /;e#( UK: 3P  @92978  @ PU <2# 3P  < D: (!   " A522246PAH#(Ui#/; $522,246# /;i#( zp;"3P A522246 A :#A650653P:#Az#()j#/; <( 4 <DLX<$650,653# /;j#( VL;"3P :#A650653 :#A PV <2#"3P  < E; "4 /$?4.2/$?E4.2% SI8"43 /$?4.2 /$? PS4.3%#(kk##XXg#(XPXXX(X(XP 3)"43P P3 <2#"43P  T< $ V# $ 3)V#3 P3 3)V#3P P3 E;#V#3P T ERetailValueAdded#(m#(!BonusCigarettes I? #&  -0A1060304P-0AI#(ɴn#/; $1,060,304# /;To#( {q<#& 3P -0A1060304 -0A x$A677308Px$A{#(ɠo#/; <( 4 <DLX<$677,308# /;]p#( VL;#& 3P x$A677308 x$A PV <2##& 3P  < E; H$  (\µ?8.5(\µ?E8.5% tj8H$ 3 (\µ?8.5 (\µ?  ףp= ?4.5 ףp= ?t#(p#(4.5% SI8H$ 3  ףp= ?4.5  ףp= ? S <2#H$ 3  T< $ $b! $ 3)$b!3 P3 3)$b!3P P3 E;#$b!3P T ERetailValueAdded#(tr#(!NonCigaretteBonus G= :%! %@24727P%@G#(+t#/; $24,727# /;t#( xn::%!3P %@24727 %@  @20535P @x#(u#/; <( 4 <DLX<$20,535# /;u#( UK::%!3P  @20535  @ PU <2#:%!3P  < D: %T"  Mb`?.2Mb`?D0.2% rh7%T"3  Mb`?.2 Mb`?  MbP?.1MbP?r#(Tv#(0.1% RH7%T"3  MbP?.1 MbP? R <2#%T"3  T< $ & # $ 3)& #3 P3 3)& #3P P3 E;#& #3P T ECompanyWebsite E; &`# `@940P`@E#(w#/; $940# /;y#( uk8&`#3P `@940 `@ F@2851PF@u#(z#/; <( 4 <DLX<$2,851# /;z#( TJ9&`#3P F@2851 F@ PT <2#&`#3P  < 8. '# # 80.0% ZP+'#3 #  # Z#(Y{#(0.0% F<+'#3 #  F <2#'# 3  T< $  ($  $ 3) ($ 3 P3 3) ($ 3P P3 <2# ($ 3P T <Internet!Other#(|#(  b 8. t($ # P8$0#(b~#( ZP+t($3P #  # PZ#(~#/; $0# /;#( F<+t($3P #  PF <2#t($3P  < $ )% P$0.0%#(#( 3))%3P P30.0%#(€##XX!m#(XPXXX(X(XP 3))%3P P3 <2#)%3P  T< $ ),& P$ 3)),&3P P3 3)),&3P P3 <2#),&3P T <Telephone E; *& 8@679P8@E#(^#/; $679# /;B#( tj8*&3P 8@679 8@ @760P@t#(Ɉ#/; <( 4 <DLX<$760# /;>#( SI8*&3P @760 @ PS <2#*&3P  < 8. *' # 8#(#(0.0% ZP+*'3 #  # Z#(Ʌ#(0.0% F<+*' 3 #  F <2#*'!3  T< $ @+'" $ 3)@+'#3 P3 3)@+'$3P P3 E;#@+'%3P T EOther** H> +(& @112879P@H$112,879 zp;+('3P @112879 @ @117563P@z#(i#/; <( 4 <DLX<$117,563# /;ш#( VL;+((3P @117563 @ PV <2#+()3P  <    b   D: 2,(*  *6 ?100?E100.0% SI8->*73 ?100 ? PS100.0%#(##XX}#XX( 3)->*83P P33)'->*93P  N 3#(XPX(ɶ#( X(XP#Y( Տ##XXY}#XX*Becauseofrounding,sumsofpercentagesmaynotequal100percent. /+: **Expendituresforaudiovisualareincludedinthe AllOtherscategorytoavoiddisclosureofindividualcompanydata.#XX#YXX( Y  /*,; @::)#(XPX( #(&]"%X(XPTABLE3  @ DOMESTICCIGARETTEADVERTISINGEXPENDITURES 4 @BYMEDIAFORYEARS19631974*   @mm"(MILLIONSOFDOLLARS)#(XPX"%(&]ҍ#Ԉ ` *" X**d OFd  FFR R _`$$,dd ,dd,dd,dd ,dd ,9dd,dd,dd,dd+  $   @$(1X(XPYEAR ' t@ @'TV ' t U@ @'RADIO ' t U@ @'@M M <NEWSPAPER#1(1$##XX1#(XPXXX(1X(XPԈ ' t @ @'MAGAZINES#1(1##XX1ז#1XX(11 ' t @ @'DIRECT ' t U@ @'BILLBOARD/  t POSTER/  8 OUTDOOR/   TRANSIT 'D U@ @'OTHE  t R ' 8U@ @'TOTAL @6 tU@ @1963@@6, <2L" 61963 6,*   @1963 @ 6$151.7     31.6 D:    F@45.6F@D45.6 B86  " F@45.6 F@ B13.2     9, <2?L, <29NA   " 7.4     249.5     1964  p  170.2  p  25.5 D: p  F@45.2F@D45.2 B86p " F@45.2 F@ B14.6  p ! NA p "" 5.8  p # 261.3  p $ 1965  L % 175.6  L & 24.8 D: L ' 33333D@41.933333D@D41.9 B86L (" 33333D@41.9 33333D@ B14.7  L ) NA L *" 6.0  L + 263.0  L , 1966   - 198.0   . 31.3 D:  / 33333E@43.433333E@D43.4 B86 0" 33333E@43.4 33333E@ B17.9   1 NA  2" 6.9   3 297.5   4 1967  x5 226.9  x6 17.5 D: x7 D@41.2D@D41.2 B86x8" D@41.2 D@ B20.3  x9 NA =3x:"  @6@=6.0 3)'x;  @6 @ 3311.5  x< 1968  T= 217.2  T> 21.3 D: T? LF@44.6LF@D44.6 B86T@" LF@44.6 LF@ B21.6  TA NA =3TB"  @6@=6.0 3)'TC  @6 @ 3310.7  TD 1969  (E 221.3  (F 13.6 D: (G YH@48.7YH@D48.7 B86(H" YH@48.7 YH@ B13.4  (I NA (J" 8.9  (K 305.9  (L 1970  M 205.0  N 12.4 @6 O ffffff-@14.7ffffff-@@14.7 j`3PU ffffff-@14.7 ffffff-@ H@49.5H@j49.5 ?53QU H@49.5 H@ ?16.9 7- R ffffff'@11.7ffffff'@711.7 WM*S ffffff'@11.7 ffffff'@ @4.5@W4.5 5+)T @4.5 @ 5314.7  U 1971  \V 2.2  \W 0 @6 \X fffffM@59.3fffffM@@59.3 j`3\YU fffffM@59.3 fffffM@ 33333X@98.333333X@j98.3 ?53\ZU 33333X@98.3 33333X@ ?27.0 7- \[ LN@60.6LN@760.6 WM*\\ LN@60.6 LN@ @4.2@WЀ4.2 5+)\] @4.2 @ 5251.6  \^ 1972  0_ 0  0` 0 @6 0a ̌O@63.1̌O@@63.1 j`30bU ̌O@63.1 ̌O@ fffffX@96.1fffffX@j96.1 ?530cU fffffX@96.1 fffffX@ ?22.9 7- 0d P@67.5P@767.5 WM*0e P@67.5 P@  @8.0 @W8.0 5+)0f  @8.0  @ 5257.6  0g 1973   h 0   i 0 @6  j 33333SP@65.333333SP@@65.3 j`3 kU 33333SP@65.3 33333SP@ W@92.4W@j92.4 ?53 lU W@92.4 W@ ?15.2 7-  m O@63.2O@763.2 XN* n O@63.2 O@ &@11.4&@X11.4 6,* o &@11.4 &@ 6247.5   p 1974  dq 0  dr 0 @6 ds  T@80.5 T@@80.5 ka3dtU  T@80.5  T@ fffff\@114.6fffff\@k114.6 @64duU fffff\@114.6 fffff\@ @31.1 7- dv Q@71.4Q@771.4 WM*dw Q@71.4 Q@ ffffff"@9.2ffffff"@W9.2 XN)dx ffffff"@9.2 ffffff"@ ,s@306.8,s@X306.8;1/dy ,s@306.8 ,s@ ;#(XPX(1m#(1X(XP#(XPX(1#(1X(XP򀀀 ,$) ?, <2?L, <2?L?*0  ThedatareportedinTables2through2Cwerenotcollectedintheirpresentformuntil1975.Thus,Table3,which 0.* reportscigaretteadvertisingexpendituresfrom1963through1974,hasbeenretainedinthisreportforcomparative .p+ purposes.#(XPX(1ɭ#(1X(XP /4,$$ *d ddd dddddd dd 9dd9dddddd$$,Pdd ,Pdd ,Pdd ,Pdd ,Pdd ,_dd +   #(XPX(1#(&]"%X(XP  TABLE4 d DOMESTICMARKETSHAREOFCIGARETTESBYTARYIELD %<  %Year *  "" *  Marketshareofcigaretteshavingtaryieldsof: %,  %  4 ò15mg.orless   12mg.orless   9mg.orless   6mg.orless    3mg.orless ?5   @1967<<@?1967 f\*X  @1967 @ {Gz?2.0{Gz?f2.0% SI8X " {Gz?2.0 {Gz? SNA 3)X " 3NA 3)X" 3NA 3)X" 3NA TJX" << @1968<<@T1968 f\*,  @1968 @ ?2.5?f2.5% SI8, " ?2.5 ? SNA 3), " 3NA 3), " 3NA 3), " 3NA TJ, " << Ğ@1969<<Ğ@T1969 f\*|  Ğ@1969 Ğ@ Q?3.0Q?f3.0% SI8| " Q?3.0 Q? SNA 3)| " 3NA 3)| " 3NA 3)| " 3NA TJ| " << Ȟ@1970<<Ȟ@T1970 f\* H  Ȟ@1970 Ȟ@ " 3NA 3)\?" 3NA TJ\@" << @1976<<@T1976 g]*(A @1976 @ '1Z?15.9'1Z?g15.9% TJ9(B" '1Z?15.9 '1Z? TNA 3)(C" 3NA 3)(D" 3NA 3)(E" 3NA TJ(F" << @1977<<@T1977 g]*xG @1977 @ tV?22.7tV?g22.7% TJ9xH" tV?22.7 tV? TNA 3)xI" 3NA 3)xJ" 3NA 3)xK" 3NA TJxL" << @1978<<@T1978 g]*LM @1978 @ ?27.5?g27.5% TJ9LN" ?27.5 ? TNA 3)LO" 3NA 3)LP" 3NA 3)LQ" 3NA TJLR" << @1979<<@T1979 g]*S @1979 @ V-?40.9V-?g40.9% TJ9T" V-?40.9 V-? TNA 3)U" 3NA 3)V" 3NA 3)W" 3NA TJX" << @1980<<@T1980 g]*hY @1980 @ x&1?44.8x&1?g44.8% TJ9hZ" x&1?44.8 x&1? TNA 3)h[" 3NA 3)h\" 3NA 3)h]" 3NA TJh^" << @1981<<@T1981 g]*<_ @1981 @ Q?56.0Q?g56.0% TJ9<`" Q?56.0 Q? TNA 3)<a" 3NA 3)<b" 3NA 3)<c" 3NA TJ<d" << @1982<<@T1982 g]*e @1982 @ NbX9?52.2NbX9?g52.2% vl9f" NbX9?52.2 NbX9? x&1?43.8x&1?v43.8% vl9g" x&1?43.8 x&1? n?27.8n?v27.8% uk9h" n?27.8 n? cX9ȶ?8.9cX9ȶ?u8.9% tj8i" cX9ȶ?8.9 cX9ȶ? V-?2.9V-?t2.9% tj>j" V-?2.9 << V-? @1983<<@t1983 g]*Xk @1983 @ ˡE?53.1ˡE?g53.1% vl9Xl" ˡE?53.1 ˡE? #~j?44.9#~j?v44.9% vl9Xm" #~j?44.9 #~j? A`"?27.9A`"?v27.9% uk9Xn" A`"?27.9 A`"? Mb?9.4Mb?u9.4% tj8Xo" Mb?9.4 Mb? X9v?3.1X9v?t3.1% tj>Xp" X9v?3.1 << X9v? @1984<<@t1984 e[*,q @1984 @  RQ?51RQ?e51.0% tj7,r"  RQ?51 RQ? -?43.4-?t43.4% vl9,s" -?43.4 -? E?26.3E?v26.3% uk9,t" E?26.3 E? Mb?9.4Mb?u9.4% tj8,u" Mb?9.4 Mb? V-?2.9V-?t2.9% tj>,v" V-?2.9 << V-? @1985<<@t1985 g]*| w @1985 @ S㥛?51.9S㥛?g51.9% vl9| x" S㥛?51.9 S㥛? /$?43.1/$?v43.1% vl9| y" /$?43.1 /$? x&1?25.3x&1?v25.3% uk9| z" x&1?25.3 x&1? /$?8.4/$?u8.4% tj8| {" /$?8.4 /$? Zd;O?2.3Zd;O?t2.3% tj>| |" Zd;O?2.3 << Zd;O? @1986<<@t1986 g]*!H} @1986 @ E?52.6E?g52.6% vl9!H~" E?52.6 E? {Gz?44.5{Gz?v44.5% vl9!H" {Gz?44.5 {Gz? %C?22.3%C?v22.3% uk9!H" %C?22.3 %C? MbX?9.9MbX?u9.9% tj8!H" MbX?9.9 MbX? :v?2.6:v?t2.6% tj>!H" :v?2.6 << :v?  @1987<< @t1987 g]*#  @1987  @ |?5^?55.4|?5^?g55.4% vl9#" |?5^?55.4 |?5^? d;O?47.8d;O?v47.8% vl9#" d;O?47.8 d;O? A`"?20.2A`"?v20.2% tj9#" A`"?20.2 A`"?  ?10?t10.0% si7#"  ?10 ? ?2.5?s2.5% tj>#" ?2.5 << ? @1988<<@t1988 g]*l$  @1988 @ MbX?54.2MbX?g54.2% vl9l$ " MbX?54.2 MbX? _I +?48.7_I +?v48.7% vl9l$ " _I +?48.7 _I +? |?5^?20.1|?5^?v20.1% vl9l$ " |?5^?20.1 |?5^? 1Zd?10.71Zd?v10.7% uk9l$ " 1Zd?10.7 1Zd? X9v?3.1X9v?u3.1% tj>l$ " X9v?3.1 << X9v? @1989<<@t1989 g]*%8" @1989 @ oʡ?55.1oʡ?g55.1% vl9%8"" oʡ?55.1 oʡ? `"?48.4`"?v48.4% vl9%8"" `"?48.4 `"? Q?21.5Q?v21.5% vl9%8"" Q?21.5 Q? v/?11.4v/?v11.4% uk9%8"" v/?11.4 v/? ~jt?2.4~jt?u2.4% tj>%8"" ~jt?2.4 << ~jt? @1990<<@t1990 g]* '# @1990 @ 1Zd?60.61Zd?g60.6% vl9 '#" 1Zd?60.6 1Zd? {Gz?51.5{Gz?v51.5% vl9 '#" {Gz?51.5 {Gz? RQ?25.5RQ?v25.5% vl9 '#" RQ?25.5 RQ? Zd;?12.2Zd;?v12.2% uk9 '#" Zd;?12.2 Zd;? x&1?2.8x&1?u2.8%NDB '#" x&1?2.8 <<  x&1? N#(XPX"%(&]#   )% *efddPdd PPdd PPdd PPdd PPdd P_dd _$$,Pdd ,Pdd ,Pdd ,Pdd ,Pdd ,_dd +   (&]"%X(XP  TABLE4A d DOMESTICMARKETSHAREOFCIGARETTESBYTARYIELD %<  %Year *  "" *  Marketshareofcigaretteshavingtaryieldsof: %,  %  4 15mg.orless   12mg.orless   9mg.orless   6mg.orless    3mg.orless ?5   @1991<<@?1991 g]*X  @1991 @ \(\?60.5\(\?g60.5% vl9X " \(\?60.5 \(\? E?52.6E?v52.6% tj9X " E?52.6 E?  )\(?22)\(?t22.0% tj7X"  )\(?22 )\(? K7A?12.7K7A?t12.7% uk9X" K7A?12.7 K7A? :v?2.6:v?u2.6% tj>X" :v?2.6 << :v?  @1992<< @t1992 g]*,   @1992  @ Cl?68.7Cl?g68.7% vl9, " Cl?68.7 Cl? !rh?52.9!rh?v52.9% vl9, " !rh?52.9 !rh? Zd;?24.9Zd;?v24.9% vl9, " Zd;?24.9 Zd;? K7A?12.7K7A?v12.7% uk9, " K7A?12.7 K7A? ?2.5?u2.5% tj>, " ?2.5 << ? $@1993<<$@t1993 g]*|  $@1993 $@ HzG?66.5HzG?g66.5% vl9| " HzG?66.5 HzG? tV?53.3tV?v53.3% vl9| " tV?53.3 tV? ʡE?23.4ʡE?v23.4% vl9| " ʡE?23.4 ʡE? T㥛 ?12.6T㥛 ?v12.6% uk9| " T㥛 ?12.6 T㥛 ? ~jt?1.9~jt?u1.9% tj>| " ~jt?1.9 << ~jt? (@1994<<(@t1994 g]* H  (@1994 (@ cX9?71.2cX9?g71.2% vl9 H " cX9?71.2 cX9? v/?53.7v/?v53.7% vl9 H " v/?53.7 v/?  rh?23.1 rh?v23.1% vl9 H "  rh?23.1  rh? rh|?12.3rh|?v12.3% uk9 H !" rh|?12.3 rh|? /$?2.1/$?u2.1% tj> H "" /$?2.1 << /$? ,@1995<<,@t1995 g]* # ,@1995 ,@ $C?72.7$C?g72.7% vl9 $" $C?72.7 $C? x&?53.6x&?v53.6% vl9 %" x&?53.6 x&? MbX?27.1MbX?v27.1% vl9 &" MbX?27.1 MbX? Zd;?12.2Zd;?v12.2% uk9 '" Zd;?12.2 Zd;? I +?2.2I +?u2.2% tj> (" I +?2.2 << I +? 0@1996<<0@t1996 g]*l ) 0@1996 0@  rh?67.4 rh?g67.4% vl9l *"  rh?67.4  rh? (\?55.5(\?v55.5% vl9l +" (\?55.5 (\? %C?22.3%C?v22.3% vl9l ," %C?22.3 %C? X9v?11.9X9v?v11.9% uk9l -" X9v?11.9 X9v? ~jt?1.9~jt?u1.9% tj>l ." ~jt?1.9 << ~jt? 4@1997<<4@t1997 g]*8 / 4@1997 4@ X9v?70.2X9v?g70.2% vl98 0" X9v?70.2 X9v? n?55.6n?v55.6% vl98 1" n?55.6 n? x&1?21.9x&1?v21.9% vl98 2" x&1?21.9 x&1? q= ףp?11.5q= ףp?v11.5% uk98 3" q= ףp?11.5 q= ףp?  rh?1.7 rh?u1.7% tj>8 4"  rh?1.7 <<  rh? 8@1998<<8@t1998 g]* 5 8@1998 8@ i|?5?81.9i|?5?g81.9% vl9 6" i|?5?81.9 i|?5? V-?56.8V-?v56.8% vl9 7" V-?56.8 V-? Zd;O?22.9Zd;O?v22.9% vl9 8" Zd;O?22.9 Zd;O? L7A`?13.2L7A`?v13.2% uk9 9" L7A`?13.2 L7A`? Mb?1.6Mb?u1.6% tj> :" Mb?1.6 << Mb? <@1999<<<@t1999 g]*\; <@1999 <@ ʡE?86.6ʡE?g86.6% vl9\<" ʡE?86.6 ʡE? |?5^?57.4|?5^?v57.4% vl9\=" |?5^?57.4 |?5^? x&1?25.3x&1?v25.3% vl9\>" x&1?25.3 x&1?  rh?13.6 rh?v13.6% uk9\?"  rh?13.6  rh? Mb?1.6Mb?u1.6% tj>\@" Mb?1.6 << Mb? @@2000<<@@t2000 g]*(A @@2000 @@ Zd;?87.1Zd;?g87.1% vl9(B" Zd;?87.1 Zd;? T㥛 ?50.4T㥛 ?v50.4% vl9(C" T㥛 ?50.4 T㥛 ? tV?23.7tV?v23.7% vl9(D" tV?23.7 tV?  rh?13.6 rh?v13.6% uk9(E"  rh?13.6  rh? :v?1.3:v?u1.3% tj>(F" :v?1.3 << :v? D@2001<<D@t2001 g]*xG D@2001 D@ $C?85.2$C?g85.2% vl9xH" $C?85.2 $C? d;O?58.1d;O?v58.1% vl9xI" d;O?58.1 d;O? !rh?22.6!rh?v22.6% vl9xJ" !rh?22.6 !rh? L7A`?13.2L7A`?v13.2% uk9xK" L7A`?13.2 L7A`? {Gz?1.0{Gz?u1.0% tj>xL" {Gz?1.0 << {Gz? H@2002<<H@t2002 g]*LM H@2002 H@ _I +?84.9_I +?g84.9% vl9LN" _I +?84.9 _I +? :v?58.2:v?v58.2% vl9LO" :v?58.2 :v? ?22.5?v22.5% vl9LP" ?22.5 ? Pn?12.9Pn?v12.9% uk9LQ" Pn?12.9 Pn? LR" "@ & #  # H0.0% H>"@ ' #  # H0.0% H>"@ ( #  # H0.0% H>"@ ) #  # H0.0% H>"@ * #  # H0.0% H>"@ + #  # H0.0% H>"@ , #  # H0.0% 2("@ - #  21215mg.tar &d .A &marketshareof d / varietiesintargroup =3 , 0 NbX9?19.3NbX9?=19.3% bX0d 1 NbX9?19.3 NbX9?  zG?21zG?b21.0% bX.d 2  zG?21 zG? /$?15.3/$?b15.3% dZ0d 3 /$?15.3 /$? K7A`?16.7K7A`?d16.7% dZ0d 4 K7A`?16.7 K7A`? :v?29.1:v?d29.1% dZ0d 5 :v?29.1 :v? ?32.5?d32.5% bX0d 6 ?32.5 ?  (\?39(\?b39.0% bX.d 7  (\?39 (\? 5^I ?29.75^I ?b29.7% @60d 8 5^I ?29.7 5^I ? @  $ 8 %thatdiscloses 9 ratingsonpack /% P: # /0.0% TJ"; #   MbP?.1MbP?T0.1% `V.<  MbP?.1 MbP?  MbP?.1MbP?`0.1% `V.=  MbP?.1 MbP?  MbP?.1MbP?`0.1% `V.>  MbP?.1 MbP?  MbP?.1MbP?`0.1% `V.?  MbP?.1 MbP?  MbP?.1MbP?`0.1% `V.@  MbP?.1 MbP?  MbP?.1MbP?`0.1% TJ.A  MbP?.1 MbP? # T0.0% 2("B #  2811mg.tar &(CC &marketshareof (D varietiesintargroup =3 tE NbX9?38.6NbX9?=38.6% dZ0(F NbX9?38.6 NbX9? S㥛?38.7S㥛?d38.7% dZ0(G S㥛?38.7 S㥛? J +?39.2J +?d39.2% bX0(H J +?39.2 J +?  = ףp=?41= ףp=?b41.0% bX.(I  = ףp=?41 = ףp=? K7?39.4K7?b39.4% dZ0(J K7?39.4 K7? n?40.3n?d40.3% dZ0(K n?40.3 n? V-?33.9V-?d33.9% dZ0(L V-?33.9 V-? l?42.1l?d42.1% @60(M l?42.1 l? @  lM %thatdiscloses LN ratingsonpack <2 O ~jt?2.4~jt?<2.4% bX/LP ~jt?2.4 ~jt? x&1?2.8x&1?b2.8% bX/LQ x&1?2.8 x&1? :v?2.6:v?b2.6% bX/LR :v?2.6 :v? Zd;O?2.3Zd;O?b2.3% bX/LS Zd;O?2.3 Zd;O? Mb?3.2Mb?b3.2% bX/LT Mb?3.2 Mb? Mb?1.6Mb?b1.6% aW/LU Mb?1.6 Mb?  x&1|?.7x&1|?a0.7% aW.LV  x&1|?.7 x&1|? {Gz?1.0{Gz?a1.0% ?5/LW {Gz?1.0 {Gz? ?47mg.tar &pXE &marketshareof pY varietiesintargroup =3 8Z x&1?11.2x&1?=11.2% dZ0p[ x&1?11.2 x&1? S㥻?10.8S㥻?d10.8% dZ0p\ S㥻?10.8 S㥻? Cl?10.9Cl?d10.9% dZ0p] Cl?10.9 Cl? S㥻?10.8S㥻?d10.8% dZ0p^ S㥻?10.8 S㥻? X9v?11.9X9v?d11.9% dZ0p_ X9v?11.9 X9v? Zd;?12.2Zd;?d12.2% dZ0p` Zd;?12.2 Zd;? Pn?12.9Pn?d12.9% dZ0pa Pn?12.9 Pn? ?12.5?d12.5% @60pb ?12.5 ? @  0b %thatdiscloses c ratingsonpack =3 \d S?30.7S?=30.7% dZ0e S?30.7 S? $C?30.1$C?d30.1% dZ0f $C?30.1 $C? n?29.3n?d29.3% dZ0g n?29.3 n? M?28.6M?d28.6% dZ0h M?28.6 M? "~?20.7"~?d20.7% dZ0i "~?20.7 "~? #~j?16.2#~j?d16.2% dZ0j #~j?16.2 #~j? Q?16.5Q?d16.5% cY0k Q?16.5 Q? l?3.7l?c3.7% ?5/l l?3.7 l? ?3mg.tarorless &<mG &marketshareof <n varietiesintargroup <2 o /$?2.1/$?<2.1% bX/<p /$?2.1 /$? I +?2.2I +?b2.2% bX/<q I +?2.2 I +? ~jt?1.9~jt?b1.9% bX/<r ~jt?1.9 ~jt?  rh?1.7 rh?b1.7% bX/<s  rh?1.7  rh? Mb?1.6Mb?b1.6% bX/<t Mb?1.6 Mb? Mb?1.6Mb?b1.6% bX/<u Mb?1.6 Mb? :v?1.3:v?b1.3% bX/<v :v?1.3 :v? {Gz?1.0{Gz?b1.0% ?5/<w {Gz?1.0 {Gz? ?  xw %thatdiscloses `x ratingsonpack =3 (y K7A`?91.8K7A`?=91.8% dZ0`z K7A`?91.8 K7A`? On?89.1On?d89.1% dZ0`{ On?89.1 On? v?97.2v?d97.2% dZ0`| v?97.2 v? A`"?97.3A`"?d97.3% dZ0`} A`"?97.3 A`"? _I +?97.4_I +?d97.4% dZ0`~ _I +?97.4 _I +? K7?92.3K7?d92.3% bX0` K7?92.3 K7?  q= ףp?92q= ףp?b92.0% bX.`  q= ףp?92 q= ףp? T㥛 ?87.9T㥛 ?b87.9%@64` T㥛 ?87.9 T㥛 ? @#(XPX(1N#    e TRX3'Avery 5261 AddressO'3Avery 5261 Address Landscape3'Letter261 AddressX(X 8 '3Letter Landscapes LandscapeTABLE6AT   #XXX(XP-K#(XPXXX*{|d ddd rdd rdd dd dd dd dd dd dd dd  .$$,'dd ,dd ,dd ,dd +  pp (1X(XP  TABLE8A P 4~@j j 5DISCLOSUREOF@@BTARRATINGS \ @  5ONCIGARETTEPACKS(20022003)     :0 x H@2002H@:2002 XN*x H@2002 H@ L@2003L@X@QQ,2003 :0*x L@2003 L@ :%ofoverallmarketthatdiscloses  L  ratingsonthepack ?5    :v?1.3:v??1.3% bX/ L  :v?1.3 :v? ~jt?1.2~jt?b1.2%WW1W ?5/ L  ~jt?1.2 ~jt? ?morethan15mg.  h  tar & , I &marketshareof  h varietiesintar  ,  group =3 t  S?15.1S?=15.1% dZ0 h S?15.1 S? S?15.1S?d15.1% @60 h S?15.1 S? @  h  %thatdiscloses H  ratingsonpack /%   # /0.0% H>"H  #  # H0.0% 2("H  #  21215mg.tar &d  N &marketshareof d  varietiesintar ( group =3 p "D  #  # H0.0% 2("D! #  2811mg.tar &`" P &marketshareof `# varietiesintar $$ group =3 l% ~jt?42.9~jt?=42.9% dZ0`& ~jt?42.9 ~jt? ʡE?43.3ʡE?d43.3% @60`' ʡE?43.3 ʡE? @  `' %thatdiscloses @( ratingsonpack <2 )  tV?78.3 tV? K7?79.8K7?d79.8%@64"8? K7?79.8 K7? @'` [}` [" 'g#(XPX(1~#( X(XP  t$ ? @DD'#(XPX( # APPENDIXA ( X(XP    #(XPX( #2003AdvertisingandPromotionalExpenditureCategories( X(XP   #(XPX( ##XXX(XPI|#X$XXX   Newspapers :Newspaperadvertising;butexcludingexpendituresinconnectionwithsampling, 8 specialtyitemdistribution,publicentertainment,endorsements,sponsorships,coupons,andretailvalue ( added.   Magazines :Magazineadvertising;butexcludingexpendituresinconnectionwithsampling,specialty p  itemdistribution,publicentertainment,endorsements,sponsorships,coupons,andretailvalueadded.#XX$XX#X$XXX `    Outdoor #XX$XXh#XXXX:Billboards;signsandplacardsinarenas,stadiums,andshoppingmalls,#XXXXӒ#whethertheyare 8  openairorenclosed;XXXXandanyotheradvertisementsplacedoutdoors,regardlessoftheirsize,including (  thoseoncigaretteretailerproperty;but#XXXX蜛#X$XXXexcludingexpendituresinconnectionwithsampling,specialty   itemdistribution,publicentertainment,endorsements,sponsorships,coupons,andretailvalueadded.#XX$XXm#X$XXX |   Audiovisual : ` Audiovisualorvideoadvertisingonanymediumofelectroniccommunicationnot T subjecttotheFederalCommunicationCommissionsjurisdiction,includingscreensatmotionpicture D theaters,videocassettes,andmonitorsinstores;butexcludingexpendituresinconnectionwithInternet 0 advertising.   Transit :#XX$XXf#XXXXAdvertisingonorwithinprivateorpublicvehiclesandalladvertisementsplacedat,onor x withinanybusstop,taxistand,transportationwaitingarea,trainstation,airportoranyother h transportationfacility#XXXXy#X$XXX;#XX$XXĸ#XXXXbut#XXXX#X$XXXexcludingexpendituresinconnectionwithsampling,specialtyitem T distribution,publicentertainment,endorsements,sponsorships,coupons,andretailvalueadded.#XX$XXB#X$XXX @  PointofSale :Pointofsaleadvertisements;#XX$XX;#XXXXbut#XXXX͚#X$XXXexcludingexpendituresinconnectionwithoutdoor  advertising,sampling,specialtyitemdistribution,publicentertainment,endorsements,sponsorships,  coupons,andretailvalueadded.#XX$XX#X$XXX p #XX$XX5#XXXX Pricediscounts :Pricediscountspaidtocigaretteretailersorwholesalersinordertoreducetheprice H ofcigarettestoconsumers,includingoffinvoicediscounts,buydowns,voluntarypricereductions, 8 andtradeprograms;butexcludingretailvalueaddedexpendituresforpromotionsinvolvingfree  $  cigarettesandexpendituresinvolvingcoupons.#XXXX蜍#X$XXX !!  PromotionalAllowances!Retail :#XX$XXy#X$XXXԀPromotionalallowancespaidto#XX$XX#XXXXcigaretteretailersinorderto l## facilitatethesaleorplacementofanycigarette,includingpaymentsforstocking,shelving,displaying \$ $ andmerchandisingbrands,volumerebates,andincentivepayments;#XXXXc#XXXXԀbutexcluding#XXXX蜗#X$XXXԀexpendituresin H%!% connectionwithnewspapers,magazines,outdoor,audiovisual,transit,directmail,pointofsale,and 4&"& pricediscounts.#XX$XX#X$XXX  '#'  PromotionalAllowances!Wholesale :#XX$XX١#X$XXXԀPromotionalallowancespaidto#XX$XXc#XXXXcigarettewholesalersinorder (t%) tofacilitatethesaleorplacementofanycigarette,includingpaymentsforvolumerebates,incentive )d&* payments,valueaddedservices,promotionalexecutionandsatisfactionofreportingrequirements#XXXXƢ#XXXX;but *P'+ excluding#XXXX#X$XXXԀexpendituresinconnectionwithnewspapers,magazines,outdoor,audiovisual,transit,direct +<(, mail,pointofsale,pricediscounts,andretailpromotionalallowances.#XX$XX{#X$XXX ,()-   .+/  PromotionalAllowances!Other :#XX$XXx#X$XXXԀPromotionalallowancespaidto#XX$XX#XXXXanypersonsotherthanretailers,  wholesalers,andfulltimecompanyemployeeswhoareinvolvedinthecigarettedistributionandsales t processinordertofacilitatethesaleorplacementofanycigarette#XXXXv#XXXX;butexcluding#XXXX蜭#X$XXXԀexpendituresin ` connectionwithnewspapers,magazines,outdoor,audiovisual,transit,directmail,pointofsale,price L discounts,andretailandwholesalepromotionalallowances.#XX$XX#X$XXX 8 #XX$XX#X$XXX Sampling :Samplingofcigarettes,includingthecostofthecigarettes,allassociatedexcisetaxes#XX$XXt#Ԁand   increasedcostsundertheMasterSettlementAgreement,andthecostoforganizing,promoting,and  | conductingsampling.Samplingincludesthedistributionofcigarettesforconsumertestingor  h evaluationwhenconsumersareabletosmokethecigarettesoutsideofafacilityoperatedbythe  T  Company,butnotthecostofactualclinicaltestingormarketresearchassociatedwithsuchcigarette  @  distributions.Samplingalsoincludesthedistributionofcouponsforfreecigarettes,whenno  ,  purchaseorpaymentisrequiredtoobtainthecouponsorcigarettes.X$XXX    SpecialtyItemDistributionBranded :#XX$XXѬ#ԀAllcostsofdistributingitemsotherthancigarettes t  (whethertheitemsaresold,redeemedbycoupon,orotherwisedistributed)thatbearthename,logoor d  depictanimageofanyportionofthepackageofacigarettevariety,includingthecostoftheitems P distributedbutsubtractinganypaymentsreceivedfortheitem.Thecostsassociatedwithdistributing < noncigaretteitemsinconnectionwithsamplingorretailvalueaddedprogramsarereportedinthose ( categories,notasspecialtyitemdistribution.   SpecialtyItemDistributionNonBranded :Allcostsofdistributingitemsotherthancigarettesin h connectionwiththemarketingorpromotionofcigarettes(whethertheitemsaresold,redeemedby X coupon,orotherwisedistributed),wheresuchitemsdonotbearthename,logoordepictanimageof D X$XXXanyportionofthepackageofacigarettevariety,includingthecostoftheitemsdistributedbut 0 subtractinganypaymentsreceivedfortheitem.#XX$XXJ#ԀThecostsassociatedwithdistributingnoncigarette  itemsinconnectionwithsamplingorretailvalueaddedprogramsarereportedinthosecategories,not  asspecialtyitemdistribution.X$XXX x  DirectMail :Directmailadvertising;butexcludingexpendituresinconnectionwithsampling, P specialtyitemdistribution,publicentertainment,endorsements,sponsorships,coupons,retailvalue @ added#XX$XX#X$XXX,andInternetadvertising. ,   PublicEntertainment!AdultOnly :#XX$XXm#X$XXXԀPublicentertainmenteventsbearingorotherwisedisplayingthe "! #XX$XX#nameorlogooranimageofanyportionofthepackageofanyofacompanyscigarettesorotherwise "p" referringorrelatingtocigarettes,whichtakeplaceinanadultonlyfacilityX$XXX,includingallexpenditures #\ # madebythecompanyinpromotingand/orsponsoringsuchevents. $H!$ #XX$XXt#X$XXX PublicEntertainment!GeneralAudience :#XX$XX;#ԀPublicentertainmenteventsbearingorotherwise & #& displayingthenameorlogooranimageofanyportionofthepackageofanyofacompanys '$' cigarettesorotherwisereferringorrelatingtocigarettes,whichdonottakeplaceinanadultonly ($( facilityX$XXX,includingallexpendituresmadebythecompanyinpromotingand/orsponsoringsuchevents.#XX$XX#X$XXX l)%)  RetailValueAdded!BonusCigarettes :#XX$XXď#X$XXXԀ#XX$XX#XXXXRetailvalueaddedexpendituresforpromotionsinvolving D+'+ freecigarettes(e.g.,buytwopacks,getonefree),whetherornotthefreecigarettesarephysically 4,(, bundledtogetherwiththepurchasedcigarettes,includingallexpendituresandcostsassociatedwith  -)- thevalueaddedtothepurchaseofcigarettes(e.g.,excisetaxespaidforthefreecigarettesand  .*. increasedcostsundertheMasterSettlementAgreement#XXXX`#XXXX).#XXXX蜛#X$XXX .t+/ Ї RetailValueAdded!NonCigaretteBonus :#XX$XX߼#X$XXXԀ#XX$XXp#XXXXRetailvalueaddedexpendituresforpromotions p involvingfreenoncigarettesitems(e.g.,buytwopacks,getacigarettelighter),includingall ` expendituresandcostsassociatedwiththevalueaddedtothepurchaseofcigarettes.#XXXX蜴#X$XXX L 0  0` $$ ` $` $  Coupons :Allcostsassociatedwithcouponsforthereductionoftheretailcostofcigarettes,whether $ redeemedatthepointofsaleorbymail,includingallcostsassociatedwithadvertisingorpromotion,   design,printing,distributionandredemption.#XX$XX #XXXXHowever,whencouponsaredistributedforfree  | cigarettesandnopurchaseorpaymentisrequiredtoobtainthecouponsorthecigarettes,these  h activitiesareconsideredtobesamplingandnotcouponing.#XXXX#X$XXX  T  #XX$XX#XXXX Sponsorships :Sponsorshipsofsportsteamsorindividualathletes,butexcludingendorsements.#XXXXY#X$XXX  ,   Endorsements&Testimonials :#XX$XX#X$XXXԀEndorsementsandtestimonials#XX$XXą#XXXX.#XXXX#X$XXX   #XX$XX)#XXXX CompanyWebsite :AllexpendituresassociatedwithadvertisingonanycompanyInternetwebsite.#XXXX蜁#X$XXX h   Internet!Other :Internetadvertising#XX$XX.#XXXXԀotherthanontheCompanysownInternetwebsite#XXXX蜼#X$XXX,including D ontheWorldWideWeb,oncommercialon-lineservices,andthroughelectronicmailmessages. 4  Telephone :#XX$XX2#XXXXTelephoneadvertising,includingcostsassociatedwiththeplacementoftelemarketing   callsortheoperationofincomingtelephonelinesthatallowconsumerstoparticipateinany x promotionorhearprerecordedproductmessages;butexcludingcostsassociatedwithhaving d customerservicerepresentativesavailableforrespondingtoconsumercomplaintsorquestions.#XXXX#X$XXX P  AllOther :Advertisingandpromotionalexpendituresnotcoveredbyanothercategory.#XX$XX #