Political Contributions and Lobbying Expenditures
Lorillard recognizes that good citizenship includes involvement in the political process. This means supporting political leaders who give full and careful consideration to all sides of an issue as well as participating in the public policy debate. Lorillard seeks to play a constructive role in helping to build lines of communication regarding legislation and regulations that may impact our ability to manufacture, market and sell our tobacco products and the freedom of our consumers to enjoy using our products. Elected officials make decisions that directly affect our ability to offer quality tobacco products to our adult consumers at an affordable price. Therefore, our active participation in the political process is important to ensure that we have a voice in these decisions.
It is Lorillard’s policy that all political contributions and lobbying expenditures are made in support of the business interests of Lorillard, although we may not agree with every position taken by a candidate or organization to whom we have contributed. Decisions made with regard to such expenditures are made without regard to the individual political preferences of our executives.
Lorillard may make corporate contributions to support political organizations (such as those organized under section 527 of the Internal Revenue Code), independent expenditure committees, and candidates and committees in those states where such corporate contributions are allowed by law. In addition, Lorillard maintains the non-partisan Lorillard Tobacco Company Public Affairs Committee (“LOPAC”) to allow eligible Lorillard employees to combine their personal funds to participate in the federal and state political process. Both corporate and LOPAC contributions comply with all local, state and federal laws and all public disclosure requirements. Criteria for making political contributions include:
- Does the organization, candidate or committee support pro business policies and public policy that promote choice and free markets?
- Does the candidate serve on legislative committees with jurisdiction over issues of importance to our business?
- Does Lorillard conduct business in the state or district represented by the candidate or where the committee or organization is active?
- Does the candidate represent or is the organization or committee active in a state or district where Lorillard has a large concentration of employees and/or adult consumers?
Public Policy Advocacy
Lorillard directly participates in the public policy debate through our employees and third-party allies advocating our positions at the state and federal levels. We seek support for public policy positions that defend our freedom to operate and protect the rights of adult consumers who choose to use and enjoy our products. Lobbying activities comply with all local, state and federal laws, including all public disclosure requirements. Our External Affairs Department oversees all lobbying activities.
Contributions to Third Parties
From time to time, Lorillard may contribute to third-party groups, including trade associations organized under sections 501(c) of the Internal Revenue Code, that may engage in political activity. While we generally agree with positions taken by these groups, we may not agree with every position taken by a group to which we have contributed. We request that all 501(c) organizations advise us of the portion of our payments that are used for political activities, which are not deductible under the Internal Revenue Code. In the event that the annual non-deductible payments to such organizations exceed $50,000, we will disclose on an annual basis the aggregate non-deductible contributions to all such organizations.
Approval Process and Oversight
All corporate political contributions and lobbying expenditures are approved by a Vice President, External Affairs, and amounts exceeding $100,000 must also be approved by the Chief Executive Officer. LOPAC contributions are approved by the Chairman of the LOPAC Board of Directors, who is an employee of Lorillard, and in compliance with all applicable federal and state laws.
Lorillard’s corporate political contributions and lobbying expenditures, including payments to third-party groups, are regularly reported to the Nominating and Corporate Governance Committee of the Board of Directors, which is comprised entirely of outside directors. The Committee oversees the Company’s political contributions and lobbying expenditures, including payments to third-party groups, to ensure compliance with the policy. The Committee makes regular reports to the Board of Directors.
Aggregate political contributions and lobbying expenditures will be disclosed on Lorillard’s website on a semiannual basis.
Political Contributions and Lobbying Expenditures
In the first half of 2014, Lorillard made $237,700 in corporate political contributions, and LOPAC made $118,206 in political contributions. In addition, Lorillard spent $2,189,006 on federal and state lobbying activities in the first half of 2014.
Information regarding many of Lorillard’s corporate political contributions can be found on the Internal Revenue Service website at www.irs.gov. Information on other Lorillard corporate contributions generally can be searched on the websites of the state campaign finance agencies that administer the reporting rules in the various states. Links to the various campaign finance agencies can be found at the Federal Election Commission link below.
Reports for LOPAC are filed according to the requirements of the Federal Election Commission and can be found at www.fec.gov. A link to the LOPAC political contribution reports is provided below.
The websites noted above include Lorillard contributions made to political candidates, political parties, political committees and other political entities organized and operating under 26 USC Section 527 of the Internal Revenue Code.
Reports for Lorillard, lobbyists representing Lorillard, or other organizations or committees to whom Lorillard has contributed are filed in compliance with all laws with the appropriate regulatory body where Lorillard is engaged in the public policy debate. Links to the various regulatory bodies where such reports have been filed can be found via the links below.
Federal Lobbying Websites
State Lobbying Websites
Select a state in the drop down menu below to retrieve a complete list of lobbyist disclosures for individuals and employers: