Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 20, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | mo | |
Entity Registrant Name | ALTRIA GROUP, INC. | |
Entity Central Index Key | 764,180 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,960,695,029 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||||
Cash and cash equivalents | $ 1,123 | $ 3,321 | $ 1,193 | $ 3,175 | ||
Receivables | 142 | 124 | ||||
Inventories: | ||||||
Leaf tobacco | 865 | 991 | ||||
Other raw materials | 201 | 200 | ||||
Work in process | 367 | 429 | ||||
Finished product | 481 | 420 | ||||
Inventory, net | 1,914 | 2,040 | ||||
Deferred income taxes | 1,143 | 1,143 | ||||
Other current assets | 311 | 250 | ||||
Total current assets | 4,633 | 6,878 | ||||
Property, plant and equipment, at cost | 4,805 | 4,755 | ||||
Less accumulated depreciation | 2,814 | 2,772 | ||||
Property, plant and equipment, net | 1,991 | 1,983 | ||||
Goodwill | 5,285 | 5,285 | ||||
Other intangible assets, net | 12,039 | 12,049 | ||||
Investment in SABMiller | 6,117 | 6,183 | ||||
Finance assets, net | 1,339 | 1,614 | ||||
Other assets | 465 | 483 | ||||
TOTAL ASSETS | 31,869 | 34,475 | ||||
LIABILITIES | ||||||
Current portion of long-term debt | 1,003 | 1,000 | ||||
Accounts payable | 290 | 416 | ||||
Accrued liabilities: | ||||||
Marketing | 674 | 618 | ||||
Employment costs | 104 | 186 | ||||
Settlement charges | 2,206 | 3,500 | ||||
Other | 961 | 925 | ||||
Dividends payable | 1,023 | 1,028 | ||||
Total current liabilities | 6,261 | 7,673 | ||||
Long-term debt | 12,917 | 13,693 | ||||
Deferred income taxes | 6,011 | 6,088 | ||||
Accrued pension costs | 945 | 1,012 | ||||
Accrued postretirement health care costs | 2,451 | 2,461 | ||||
Other liabilities | 475 | 503 | ||||
Total liabilities | $ 29,060 | $ 31,430 | ||||
Contingencies (Note 9) | ||||||
Redeemable noncontrolling interest | $ 36 | $ 35 | ||||
STOCKHOLDERS' EQUITY | ||||||
Common stock, par value $0.33 1/3 per share (2,805,961,317 shares issued) | 935 | 935 | ||||
Additional paid-in capital | 5,768 | 5,735 | ||||
Earnings reinvested in the business | 26,698 | 26,277 | ||||
Accumulated other comprehensive losses | (2,878) | $ (2,945) | (2,682) | $ (1,229) | $ (1,318) | (1,378) |
Cost of repurchased stock (843,994,958 shares at June 30, 2015 and 834,486,794 shares at December 31, 2014) | (27,744) | (27,251) | ||||
Total stockholders' equity attributable to Altria Group, Inc. | 2,779 | 3,014 | ||||
Noncontrolling interests | (6) | (4) | ||||
Total stockholders' equity | 2,773 | 3,010 | $ 4,118 | |||
Total Liabilities and Stockholders' Equity | $ 31,869 | $ 34,475 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.3333 | $ 0.3333 |
Common stock, shares issued | 2,805,961,317 | 2,805,961,317 |
Cost of repurchased stock, shares | 843,994,958 | 834,486,794 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 6,613 | $ 6,256 | $ 12,417 | $ 11,773 |
Cost of sales | 2,004 | 1,968 | 3,801 | 3,720 |
Excise taxes on products | 1,738 | 1,685 | 3,270 | 3,194 |
Gross profit | 2,871 | 2,603 | 5,346 | 4,859 |
Marketing, administration and research costs | 643 | 638 | 1,253 | 1,158 |
Asset impairment and exit costs | 4 | (10) | 4 | (8) |
Operating income (expense) | 2,224 | 1,975 | 4,089 | 3,709 |
Interest and other debt expense, net | 195 | 230 | 404 | 383 |
Loss on early extinguishment of debt | 0 | 0 | 228 | 0 |
Earnings from equity investment in SABMiller | (225) | (200) | (359) | (425) |
Earnings (loss) before income taxes | 2,254 | 1,945 | 3,816 | 3,751 |
Provision for income taxes | 805 | 683 | 1,349 | 1,314 |
Net earnings | 1,449 | 1,262 | 2,467 | 2,437 |
Net earnings attributable to noncontrolling interests | (1) | 0 | (1) | 0 |
Net earnings attributable to Altria Group, Inc. | $ 1,448 | $ 1,262 | $ 2,466 | $ 2,437 |
Per share data: | ||||
Basic and diluted earnings per share attributable to Altria Group, Inc. (usd per share) | $ 0.74 | $ 0.64 | $ 1.25 | $ 1.23 |
Dividends declared (usd per share) | $ 0.52 | $ 0.48 | $ 1.04 | $ 0.96 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net earnings | $ 1,449 | $ 1,262 | $ 2,467 | $ 2,437 |
Other comprehensive earnings (losses), net of deferred income taxes: | ||||
Currency translation adjustments | 0 | 1 | (1) | 1 |
Benefit plans | 39 | 24 | 81 | 49 |
SABMiller | 28 | 64 | (276) | 99 |
Other comprehensive earnings (losses), net of deferred income taxes | 67 | 89 | (196) | 149 |
Comprehensive earnings | 1,516 | 1,351 | 2,271 | 2,586 |
Comprehensive earnings attributable to noncontrolling interests | (1) | 0 | (1) | 0 |
Comprehensive earnings attributable to Altria Group, Inc. | $ 1,515 | $ 1,351 | $ 2,270 | $ 2,586 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Earnings Reinvested in the Business [Member] | Accumulated Other Comprehensive Losses [Member] | Cost of Repurchased Stock [Member] | Noncontrolling Interests [Member] | |
Beginning balance at Dec. 31, 2013 | $ 4,118 | $ 935 | $ 5,714 | $ 25,168 | $ (1,378) | $ (26,320) | $ (1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | [1] | 5,067 | 5,070 | (3) | ||||
Other comprehensive earnings (losses), net of deferred income taxes (benefit) | (1,304) | (1,304) | ||||||
Stock award activity | 29 | 21 | 8 | |||||
Cash dividends declared | (3,961) | (3,961) | ||||||
Repurchases of common stock | (939) | (939) | ||||||
Ending balance at Dec. 31, 2014 | 3,010 | 935 | 5,735 | 26,277 | (2,682) | (27,251) | (4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | [1] | 2,464 | 2,466 | (2) | ||||
Other comprehensive earnings (losses), net of deferred income taxes (benefit) | (196) | (196) | ||||||
Stock award activity | (5) | 33 | (38) | |||||
Cash dividends declared | (2,045) | (2,045) | ||||||
Repurchases of common stock | (455) | (455) | ||||||
Ending balance at Jun. 30, 2015 | $ 2,773 | $ 935 | $ 5,768 | $ 26,698 | $ (2,878) | $ (27,744) | $ (6) | |
[1] | Net losses attributable to noncontrolling interests for the six months ended June 30, 2015 and for the year ended December 31, 2014 exclude net earnings of $3 million for each period, due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars, which is reported in the mezzanine equity section in the condensed consolidated balance sheets at June 30, 2015 and December 31, 2014. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Net earnings Attributable to noncontrolling interests | $ 3 | $ 3 |
Cash Dividends declared | $ 1.04 | $ 2 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Provided by (Used in) Operating Activities | ||
Net earnings | $ 2,467 | $ 2,437 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 100 | 100 |
Deferred income tax provision (benefit) | 28 | (21) |
Earnings from equity investment in SABMiller | (359) | (425) |
Loss on early extinguishment of debt | 228 | 0 |
Cash effects of changes, net of the effects from acquisition of Green Smoke: | ||
Receivables, net | 19 | 12 |
Inventories | 105 | 38 |
Accounts payable | (154) | (121) |
Income taxes | (153) | (5) |
Accrued liabilities and other current assets | 74 | 12 |
Accrued settlement charges | (1,294) | (1,347) |
Pension plan contributions | (9) | (8) |
Pension provisions and postretirement, net | 55 | 15 |
Other | 140 | 72 |
Net cash provided by operating activities | 1,247 | 759 |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | (99) | (60) |
Acquisition of Green Smoke, net of acquired cash | 0 | (93) |
Proceeds from finance assets | 185 | 189 |
Other | 1 | 66 |
Net cash provided by (used in) investing activities | 87 | 102 |
Cash Used in Financing Activities | ||
Long-term debt repaid | (793) | (525) |
Repurchases of common stock | (455) | (404) |
Dividends paid on common stock | (2,050) | (1,912) |
Premium and fees related to early extinguishment of debt | (226) | 0 |
Other | (8) | (2) |
Cash used in financing activities | (3,532) | (2,843) |
Cash and cash equivalents: | ||
Increase (decrease) | (2,198) | (1,982) |
Balance at beginning of period | 3,321 | 3,175 |
Balance at end of period | $ 1,123 | $ 1,193 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation: Background At June 30, 2015 , Altria Group, Inc.’s wholly-owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is engaged predominantly in the manufacture and sale of cigarettes in the United States; John Middleton Co. (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco, and is a wholly-owned subsidiary of PM USA; and UST LLC (“UST”), which through its wholly-owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (“USSTC”) and Ste. Michelle Wine Estates Ltd. (“Ste. Michelle”), is engaged in the manufacture and sale of smokeless tobacco products and wine. Altria Group, Inc.’s other operating companies included Nu Mark LLC (“Nu Mark”), a wholly-owned subsidiary that is engaged in the manufacture and sale of innovative tobacco products, and Philip Morris Capital Corporation (“PMCC”), a wholly-owned subsidiary that maintains a portfolio of finance assets, substantially all of which are leveraged leases. Other Altria Group, Inc. wholly-owned subsidiaries included Altria Group Distribution Company, which provides sales, distribution and consumer engagement services to certain Altria Group, Inc. operating subsidiaries, and Altria Client Services Inc., which provides various support services, such as legal, regulatory, finance, human resources and external affairs, to Altria Group, Inc. and its subsidiaries. Altria Group, Inc.’s access to the operating cash flows of its wholly-owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries. At June 30, 2015 , Altria Group, Inc.’s principal wholly-owned subsidiaries were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their equity interests. At June 30, 2015 , Altria Group, Inc. also held approximately 27% of the economic and voting interest of SABMiller plc (“SABMiller”), which Altria Group, Inc. accounts for under the equity method of accounting. Altria Group, Inc. receives cash dividends on its interest in SABMiller if and when SABMiller pays such dividends. Share Repurchases Altria Group, Inc.’s share repurchase activity was as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions, except per share data) Total number of shares repurchased 8.8 10.8 5.2 3.3 Aggregate cost of shares repurchased $ 455 $ 404 $ 263 $ 132 Average price per share of shares repurchased $ 51.63 $ 37.40 $ 50.64 $ 40.72 In April 2013, Altria Group, Inc.’s Board of Directors (the “Board of Directors”) authorized a $300 million share repurchase program and expanded it to $1.0 billion in August 2013 (as expanded, the “April 2013 share repurchase program”). During the third quarter of 2014, Altria Group, Inc. completed the April 2013 share repurchase program, under which Altria Group, Inc. repurchased a total of 27.1 million shares of its common stock at an average price of $36.97 per share. In July 2014, the Board of Directors authorized a $1.0 billion share repurchase program (the “July 2014 share repurchase program”). At June 30, 2015 , Altria Group, Inc. had approximately $63 million remaining in the July 2014 share repurchase program. In July 2015, Altria Group, Inc. completed the July 2014 share repurchase program, under which it repurchased a total of 20.4 million shares of its common stock at an average price of $48.90 per share. In July 2015, the Board of Directors authorized a new $1.0 billion share repurchase program. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors. Basis of Presentation The interim condensed consolidated financial statements of Altria Group, Inc. are unaudited. It is the opinion of Altria Group, Inc.’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected in the interim condensed consolidated financial statements. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year. These statements should be read in conjunction with the consolidated financial statements and related notes, which appear in Altria Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2014 . |
Acquisition of Green Smoke
Acquisition of Green Smoke | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition of Green Smoke | Acquisition of Green Smoke: In April 2014 , Nu Mark acquired the e-vapor business of Green Smoke, Inc. and its affiliates (“Green Smoke”) for a total purchase price of approximately $130 million . The acquisition complements Nu Mark’s capabilities and enhances its competitive position by adding e-vapor experience, broadening product offerings and strengthening supply chain capabilities. Green Smoke’s financial position and results of operations have been consolidated with Altria Group, Inc. as of April 1, 2014. Pro forma results, as well as net revenues and net earnings for Green Smoke subsequent to the acquisition, have not been presented because the acquisition of Green Smoke is not material to Altria Group, Inc.’s consolidated results of operations. The purchase price allocation has been completed, and there were no changes subsequent to the acquisition date. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans: Subsidiaries of Altria Group, Inc. sponsor noncontributory defined benefit pension plans covering the majority of all employees of Altria Group, Inc. and its subsidiaries. However, employees hired on or after a date specific to their employee group are not eligible to participate in these noncontributory defined benefit pension plans but are instead eligible to participate in a defined contribution plan with enhanced benefits. This transition for new hires occurred from October 1, 2006 to January 1, 2008. In addition, effective January 1, 2010, certain employees of UST’s subsidiaries and Middleton who were participants in noncontributory defined benefit pension plans ceased to earn additional benefit service under those plans and became eligible to participate in a defined contribution plan with enhanced benefits. Altria Group, Inc. and its subsidiaries also provide health care and other benefits to the majority of retired employees. Pension Plans Components of Net Periodic Benefit Cost Net periodic pension cost consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 43 $ 34 $ 22 $ 17 Interest cost 168 172 84 86 Expected return on plan assets (270 ) (260 ) (135 ) (130 ) Amortization: Net loss 117 75 58 37 Prior service cost 4 5 2 2 Net periodic pension cost $ 62 $ 26 $ 31 $ 12 Employer Contributions Altria Group, Inc. makes contributions to the pension plans to the extent that the contributions are tax deductible and pays benefits that relate to plans for salaried employees that cannot be funded under Internal Revenue Service regulations. Employer contributions of $9 million were made to Altria Group, Inc.’s pension plans during the six months ended June 30, 2015 . Currently, Altria Group, Inc. anticipates making additional employer contributions to its pension plans during the remainder of 2015 of approximately $10 million to $40 million , based on current tax law. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest rates. Postretirement Benefit Plans Net postretirement health care costs consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 9 $ 8 $ 5 $ 4 Interest cost 51 54 25 27 Amortization: Net loss 23 14 11 7 Prior service credit (20 ) (21 ) (10 ) (10 ) Net postretirement health care costs $ 63 $ 55 $ 31 $ 28 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Net earnings attributable to Altria Group, Inc. $ 2,466 $ 2,437 $ 1,448 $ 1,262 Less: Distributed and undistributed earnings attributable to unvested restricted shares and restricted stock units (also known as deferred stock) (5 ) (6 ) (3 ) (3 ) Earnings for basic and diluted EPS $ 2,461 $ 2,431 $ 1,445 $ 1,259 Weighted-average shares for basic and diluted EPS 1,964 1,983 1,962 1,980 |
Other Comprehensive Earnings_Lo
Other Comprehensive Earnings/Losses | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Other Comprehensive Earnings/Losses | Other Comprehensive Earnings/Losses: The following tables set forth the changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria Group, Inc.: For the Six Months Ended June 30, 2015 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2014 $ (2 ) $ (2,040 ) $ (640 ) $ (2,682 ) Other comprehensive losses before reclassifications (1 ) — (434 ) (435 ) Deferred income taxes — — 151 151 Other comprehensive losses before reclassifications, net of deferred income taxes (1 ) — (283 ) (284 ) Amounts reclassified to net earnings — 134 9 143 Deferred income taxes — (53 ) (2 ) (55 ) Amounts reclassified to net earnings, net of deferred income taxes — 81 7 88 Other comprehensive (losses) earnings, net of deferred income taxes (1 ) 81 (276 ) (1) (196 ) Balances, June 30, 2015 $ (3 ) $ (1,959 ) $ (916 ) $ (2,878 ) For the Three Months Ended June 30, 2015 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, March 31, 2015 $ (3 ) $ (1,998 ) $ (944 ) $ (2,945 ) Other comprehensive earnings before reclassifications — — 37 37 Deferred income taxes — — (13 ) (13 ) Other comprehensive earnings before reclassifications, net of deferred income taxes — — 24 24 Amounts reclassified to net earnings — 66 5 71 Deferred income taxes — (27 ) (1 ) (28 ) Amounts reclassified to net earnings, net of deferred income taxes — 39 4 43 Other comprehensive earnings, net of deferred income taxes — 39 28 (1) 67 Balances, June 30, 2015 $ (3 ) $ (1,959 ) $ (916 ) $ (2,878 ) For the Six Months Ended June 30, 2014 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2013 $ — $ (1,273 ) $ (105 ) $ (1,378 ) Other comprehensive earnings before reclassifications 1 — 150 151 Deferred income taxes — — (53 ) (53 ) Other comprehensive earnings before reclassifications, net of deferred income taxes 1 — 97 98 Amounts reclassified to net earnings — 80 3 83 Deferred income taxes — (31 ) (1 ) (32 ) Amounts reclassified to net earnings, net of deferred income taxes — 49 2 51 Other comprehensive earnings, net of deferred income taxes 1 49 99 (1) 149 Balances, June 30, 2014 $ 1 $ (1,224 ) $ (6 ) $ (1,229 ) For the Three Months Ended June 30, 2014 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, March 31, 2014 $ — $ (1,248 ) $ (70 ) $ (1,318 ) Other comprehensive earnings before reclassifications 1 — 99 100 Deferred income taxes — — (35 ) (35 ) Other comprehensive earnings before reclassifications, net of deferred income taxes 1 — 64 65 Amounts reclassified to net earnings — 39 — 39 Deferred income taxes — (15 ) — (15 ) Amounts reclassified to net earnings, net of deferred income taxes — 24 — 24 Other comprehensive earnings, net of deferred income taxes 1 24 64 (1) 89 Balances, June 30, 2014 $ 1 $ (1,224 ) $ (6 ) $ (1,229 ) (1) For the six and three months ended June 30, 2015 and 2014 , Altria Group, Inc.’s proportionate share of SABMiller’s other comprehensive earnings/losses consisted primarily of currency translation adjustments. The following table sets forth pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Benefit Plans: (1) Net loss $ 150 $ 96 $ 74 $ 47 Prior service cost/credit (16 ) (16 ) (8 ) (8 ) 134 80 66 39 SABMiller (2) 9 3 5 — Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 143 $ 83 $ 71 $ 39 (1) Amounts are included in net defined benefit plan costs. For further details, see Note 3 . Benefit Plans. (2) Amounts are included in earnings from equity investment in SABMiller. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting: The products of Altria Group, Inc.’s subsidiaries include smokeable products comprised of cigarettes manufactured and sold by PM USA and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; smokeless products, substantially all of which are manufactured and sold by USSTC; and wine produced and/or distributed by Ste. Michelle. The products and services of these subsidiaries constitute Altria Group, Inc.’s reportable segments of smokeable products, smokeless products and wine. The financial services and the innovative tobacco products businesses are included in all other. Altria Group, Inc.’s chief operating decision maker reviews operating companies income to evaluate the performance of, and allocate resources to, the segments. Operating companies income for the segments is defined as operating income before amortization of intangibles and general corporate expenses. Interest and other debt expense, net, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by Altria Group, Inc.’s chief operating decision maker. Segment data were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Net revenues: Smokeable products $ 11,195 $ 10,569 $ 5,974 $ 5,611 Smokeless products 911 879 481 464 Wine 295 275 161 146 All other 16 50 (3 ) 35 Net revenues $ 12,417 $ 11,773 $ 6,613 $ 6,256 Earnings before income taxes: Operating companies income (loss): Smokeable products $ 3,710 $ 3,320 $ 2,024 $ 1,789 Smokeless products 544 524 293 285 Wine 62 50 35 28 All other (104 ) (54 ) (63 ) (53 ) Amortization of intangibles (10 ) (10 ) (5 ) (5 ) General corporate expenses (113 ) (121 ) (60 ) (69 ) Operating income 4,089 3,709 2,224 1,975 Interest and other debt expense, net (404 ) (383 ) (195 ) (230 ) Loss on early extinguishment of debt (228 ) — — — Earnings from equity investment in SABMiller 359 425 225 200 Earnings before income taxes $ 3,816 $ 3,751 $ 2,254 $ 1,945 The comparability of operating companies income for the reportable segments was affected by the following: Non-Participating Manufacturer (“NPM”) Adjustment Items - For the six and three months ended June 30, 2014, pre-tax income for NPM adjustment items was recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2014 2014 (in millions) Smokeable products segment $ 43 $ 43 Interest and other debt expense, net 47 (17 ) Total $ 90 $ 26 These adjustments resulted from the settlement of, and determinations made in connection with, disputes with certain states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (the “MSA”) for the years 2003-2012 (such settlements and determinations are referred to collectively as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation - NPM Adjustment Disputes in Note 9 . Contingencies ) . The amounts shown in the table above for the smokeable products segment were recorded by PM USA as reductions to cost of sales, which increased operating companies income in the smokeable products segment. Tobacco and Health Litigation Items - For the six and three months ended June 30, 2015 and 2014 , pre-tax charges related to certain tobacco and health litigation items were recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Smokeable products segment $ 48 $ 19 $ 5 $ 16 General corporate — 15 — 15 Interest and other debt expense, net — 1 — — Total $ 48 $ 35 $ 5 $ 31 During the first quarter of 2015, PM USA and certain other cigarette manufacturers reached a tentative agreement to resolve approximately 415 pending federal Engle progeny cases. As a result of the tentative agreement, during the first quarter of 2015, PM USA recorded a pre-tax provision of approximately $43 million in marketing, administration and research costs. For further discussion, see Smoking and Health Litigation - Tentative Agreement to Resolve Federal Engle Progeny Cases in Note 9 . Contingencies . During the second quarter of 2014, Altria Group, Inc. and PM USA recorded an aggregate pre-tax charge of $31 million in marketing, administration and research costs for the estimated costs of implementing the corrective communications remedy in connection with the federal government’s lawsuit against Altria Group, Inc. and PM USA. For further discussion, see Health Care Cost Recovery Litigation - Federal Government’s Lawsuit in Note 9 . Contingencies . Asset Impairment and Exit Costs - During the second quarter of 2014, PM USA sold its Cabarrus, North Carolina manufacturing facility for approximately $66 million in connection with the previously completed manufacturing optimization program associated with PM USA’s closure of the manufacturing facility in 2009. As a result, during the second quarter of 2014, PM USA recorded a pre-tax gain of $10 million . |
Finance Assets, net
Finance Assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Finance Assets, net | Finance Assets, net: In 2003, PMCC ceased making new investments and began focusing exclusively on managing its portfolio of finance assets in order to maximize its operating results and cash flows from its existing lease portfolio activities and asset sales. Accordingly, PMCC’s operating companies income will fluctuate over time as investments mature or are sold. At June 30, 2015 , finance assets, net, of $1,339 million were comprised of investments in finance leases of $1,381 million , reduced by the allowance for losses of $42 million . At December 31, 2014 , finance assets, net, of $1,614 million were comprised of investments in finance leases of $1,656 million , reduced by the allowance for losses of $42 million . During the second quarter of 2015, as a result of the commencement of marketing efforts to sell certain aircraft within PMCC’s portfolio, PMCC determined that the estimated unguaranteed residual values on these aircraft should be reduced by $35 million . This decrease in unguaranteed residual values resulted in a reduction to PMCC’s net revenues of $29 million in the second quarter of 2015. There were no such adjustments for the six months ended June 30, 2014. PMCC assesses the adequacy of its allowance for losses relative to the credit risk of its leasing portfolio on an ongoing basis. During the six months ended June 30, 2014 , PMCC determined that its allowance for losses exceeded the amount required based on management’s assessment of the credit quality and size of PMCC’s leasing portfolio. As a result, for the six months ended June 30, 2014, PMCC reduced its allowance for losses by $10 million . This decrease to the allowance for losses was recorded as a reduction to marketing, administration and research costs on Altria Group, Inc.’s condensed consolidated statement of earnings. PMCC believes that, as of June 30, 2015 , the allowance for losses of $42 million was adequate. PMCC continues to monitor economic and credit conditions, and the individual situations of its lessees and their respective industries, and may increase or decrease its allowance for losses if such conditions change in the future. The activity in the allowance for losses on finance assets for the six months ended June 30, 2015 and 2014 was as follows: For the Six Months Ended June 30, 2015 2014 (in millions) Balance at beginning of the year $ 42 $ 52 Decrease to allowance — (10 ) Balance at June 30 $ 42 $ 42 All PMCC lessees were current on their lease payment obligations as of June 30, 2015 . The credit quality of PMCC’s investments in finance leases as assigned by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”) at June 30, 2015 and December 31, 2014 was as follows: June 30, 2015 December 31, 2014 (in millions) Credit Rating by Standard & Poor’s/Moody’s: “AAA/Aaa” to “A-/A3” $ 261 $ 417 “BBB+/Baa1” to “BBB-/Baa3” 725 833 “BB+/Ba1” and Lower 395 406 Total $ 1,381 $ 1,656 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt: At June 30, 2015 and December 31, 2014 , Altria Group, Inc. had no short-term borrowings. Long-term Debt During the first quarter of 2015, Altria Group, Inc. completed a debt tender offer to purchase for cash $793 million aggregate principal amount of its senior unsecured 9.700% notes due 2018. As a result of the debt tender offer, during the first quarter of 2015, Altria Group, Inc. recorded a pre-tax loss on early extinguishment of debt of $228 million , which included premiums and fees of $226 million and the write-off of the related unamortized debt discount and debt issuance costs of $2 million . Altria Group, Inc.’s estimate of the fair value of its debt is based on observable market information derived from a third-party pricing source and is classified in Level 2 of the fair value hierarchy. The aggregate fair value of Altria Group, Inc.’s total long-term debt at June 30, 2015 and December 31, 2014 , was $15.4 billion and $17.0 billion , respectively, as compared with its carrying value of $13.9 billion and $14.7 billion , respectively. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies: Legal proceedings covering a wide range of matters are pending or threatened in various United States and foreign jurisdictions against Altria Group, Inc. and its subsidiaries, including PM USA and UST and its subsidiaries, as well as their respective indemnitees. Various types of claims may be raised in these proceedings, including product liability, consumer protection, antitrust, tax, contraband shipments, patent infringement, employment matters, claims for contribution and claims of competitors or distributors. Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending or future cases. An unfavorable outcome or settlement of pending tobacco-related or other litigation could encourage the commencement of additional litigation. Damages claimed in some tobacco-related and other litigation are or can be significant and, in certain cases, range in the billions of dollars. The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome. In certain cases, plaintiffs claim that defendants’ liability is joint and several. In such cases, Altria Group, Inc. or its subsidiaries may face the risk that one or more co-defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated share of a judgment. As a result, Altria Group, Inc. or its subsidiaries under certain circumstances may have to pay more than their proportionate share of any bonding- or judgment-related amounts. Furthermore, in those cases where plaintiffs are successful, Altria Group, Inc. or its subsidiaries may also be required to pay interest and attorneys’ fees. Although PM USA has historically been able to obtain required bonds or relief from bonding requirements in order to prevent plaintiffs from seeking to collect judgments while adverse verdicts have been appealed, there remains a risk that such relief may not be obtainable in all cases. This risk has been substantially reduced given that 47 states and Puerto Rico limit the dollar amount of bonds or require no bond at all. As discussed below, however, tobacco litigation plaintiffs have challenged the constitutionality of Florida’s bond cap statute in several cases and plaintiffs may challenge state bond cap statutes in other jurisdictions as well. Such challenges may include the applicability of state bond caps in federal court. Although Altria Group, Inc. cannot predict the outcome of such challenges, it is possible that the consolidated results of operations, cash flows or financial position of Altria Group, Inc., or one or more of its subsidiaries, could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome of one or more such challenges. Altria Group, Inc. and its subsidiaries record provisions in the condensed consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except to the extent discussed elsewhere in this Note 9 . Contingencies : (i) management has concluded that it is not probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss that could result from an unfavorable outcome in any of the pending tobacco-related cases; and (iii) accordingly, management has not provided any amounts in the condensed consolidated financial statements for unfavorable outcomes, if any. Litigation defense costs are expensed as incurred. Altria Group, Inc. and its subsidiaries have achieved substantial success in managing litigation. Nevertheless, litigation is subject to uncertainty and significant challenges remain. It is possible that the consolidated results of operations, cash flows or financial position of Altria Group, Inc., or one or more of its subsidiaries, could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation. Altria Group, Inc. and each of its subsidiaries named as a defendant believe, and each has been so advised by counsel handling the respective cases, that it has valid defenses to the litigation pending against it, as well as valid bases for appeal of adverse verdicts. Each of the companies has defended, and will continue to defend, vigorously against litigation challenges. However, Altria Group, Inc. and its subsidiaries may enter into settlement discussions in particular cases if they believe it is in the best interests of Altria Group, Inc. to do so. Overview of Altria Group, Inc. and/or PM USA Tobacco-Related Litigation Types and Number of Cases Claims related to tobacco products generally fall within the following categories: (i) smoking and health cases alleging personal injury brought on behalf of individual plaintiffs; (ii) smoking and health cases primarily alleging personal injury or seeking court-supervised programs for ongoing medical monitoring and purporting to be brought on behalf of a class of individual plaintiffs, including cases in which the aggregated claims of a number of individual plaintiffs are to be tried in a single proceeding; (iii) health care cost recovery cases brought by governmental (both domestic and foreign) plaintiffs seeking reimbursement for health care expenditures allegedly caused by cigarette smoking and/or disgorgement of profits; (iv) class action suits alleging that the uses of the terms “Lights” and “Ultra Lights” constitute deceptive and unfair trade practices, common law or statutory fraud, unjust enrichment, breach of warranty or violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”); and (v) other tobacco-related litigation described below. Plaintiffs’ theories of recovery and the defenses raised in pending smoking and health, health care cost recovery and “Lights/Ultra Lights” cases are discussed below. The table below lists the number of certain tobacco-related cases pending in the United States against PM USA and, in some instances, Altria Group, Inc. as of July 24, 2015, July 18, 2014 and July 22, 2013 . Type of Case Number of Cases Number of Cases Number of Cases Individual Smoking and Health Cases (1) 65 67 73 Smoking and Health Class Actions and Aggregated Claims Litigation (2) 5 5 6 Health Care Cost Recovery Actions (3) 1 1 1 “Lights/Ultra Lights” Class Actions 12 14 15 (1) Does not include 2,545 cases brought by flight attendants seeking compensatory damages for personal injuries allegedly caused by exposure to environmental tobacco smoke (“ETS”). The flight attendants allege that they are members of an ETS smoking and health class action in Florida, which was settled in 1997 ( Broin ). The terms of the court-approved settlement in that case allow class members to file individual lawsuits seeking compensatory damages, but prohibit them from seeking punitive damages. Also, does not include individual smoking and health cases brought by or on behalf of plaintiffs in Florida state and federal courts following the decertification of the Engle case (discussed below in Smoking and Health Litigation - Engle Class Action ). (2) Includes as one case the 600 civil actions (of which 346 were actions against PM USA) that were to be tried in a single proceeding in West Virginia ( In re: Tobacco Litigation ). The West Virginia Supreme Court of Appeals has ruled that the United States Constitution did not preclude a trial in two phases in this case. Issues related to defendants’ conduct and whether punitive damages are permissible were tried in the first phase. Trial in the first phase of this case began in April 2013. In May 2013, the jury returned a verdict in favor of defendants on the claims for design defect, negligence, failure to warn, breach of warranty, and concealment and declined to find that the defendants’ conduct warranted punitive damages. Plaintiffs prevailed on their claim that ventilated filter cigarettes should have included use instructions for the period 1964 - 1969. The second phase will consist of trials to determine liability and compensatory damages. In November 2013, plaintiffs filed their notice of appeal to the West Virginia Supreme Court of Appeals. In November 2014, the West Virginia Supreme Court of Appeals affirmed the final judgment and, in January 2015, denied plaintiffs’ petition for rehearing. In April 2015, plaintiffs filed a petition for writ of certiorari with the United States Supreme Court, which the Supreme Court denied on June 8, 2015. On July 13, 2015, the trial court entered an order that will result in the entry of final judgment in favor of defendants and against all but 30 plaintiffs who potentially have a claim against one or more defendants that may be pursued in a second phase of trial. The court intends to try the claims of these 30 plaintiffs in six consolidated trials, each with a group of five plaintiffs. The first trial is set to begin June 13, 2016, and the second on December 4, 2016. Dates for the four remaining consolidated trials have not been scheduled. (3) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. International Tobacco-Related Cases As of July 24, 2015, PM USA is a named defendant in ten health care cost recovery actions in Canada, eight of which also name Altria Group, Inc. as a defendant. PM USA and Altria Group, Inc. are also named defendants in seven smoking and health class actions filed in various Canadian provinces. See Guarantees and Other Similar Matters below for a discussion of the Distribution Agreement between Altria Group, Inc. and Philip Morris International Inc. (“PMI”) that provides for indemnities for certain liabilities concerning tobacco products. Tobacco-Related Cases Set for Trial As of July 24, 2015, 16 Engle progeny cases, one “Lights/Ultra Lights” class action and two individual smoking and health cases against PM USA are set for trial in 2015. Cases against other companies in the tobacco industry are also scheduled for trial in 2015. Trial dates are subject to change. Trial Results Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 56 smoking and health, “Lights/Ultra Lights” and health care cost recovery cases in which PM USA was a defendant. Verdicts in favor of PM USA and other defendants were returned in 38 of the 56 cases. These 38 cases were tried in Alaska (1), California (6), Florida (10), Louisiana (1), Massachusetts (1), Mississippi (1), Missouri (3), New Hampshire (1), New Jersey (1), New York (5), Ohio (2), Pennsylvania (1), Rhode Island (1), Tennessee (2) and West Virginia (2). A motion for a new trial was granted in one of the cases in Florida and in the case in Alaska. In the Alaska case ( Hunter ), the trial court withdrew its order for a new trial upon PM USA’s motion for reconsideration. Oral argument of plaintiff’s appeal of this ruling occurred in September 2014. See Types and Number of Cases above for a discussion of the trial results in In re: Tobacco Litigation (West Virginia consolidated cases). Of the 18 non- Engle progeny cases in which verdicts were returned in favor of plaintiffs, 15 have reached final resolution. A verdict against defendants in one health care cost recovery case ( Blue Cross/Blue Shield ) was reversed and all claims were dismissed with prejudice. In addition, a verdict against defendants in a purported “Lights” class action in Illinois ( Price ) was reversed and the case was dismissed with prejudice in December 2006, but plaintiff is seeking to reinstate the verdict, which an intermediate appellate court ordered in April 2014. PM USA filed a petition for leave to appeal, which automatically stayed the April 2014 order. In September 2014, the Illinois Supreme Court granted PM USA’s motion for leave to appeal. Oral argument occurred on May 19, 2015. See “Lights/Ultra Lights” Cases - The Price Case below for a discussion of developments in Price . As of July 24, 2015, 81 state and federal Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court’s Engle decision as follows: 43 verdicts were returned in favor of plaintiffs; 36 verdicts were returned in favor of PM USA; and two verdicts that were initially returned in favor of plaintiffs were reversed on appeal and remain pending. See Smoking and Health Litigation - Engle Progeny Trial Court Results below for a discussion of these verdicts. Judgments Paid and Provisions for Tobacco and Health Litigation Items (Including Engle Progeny Litigation) After exhausting all appeals in those cases resulting in adverse verdicts associated with tobacco-related litigation, since October 2004, PM USA has paid in the aggregate judgments (and related costs and fees) totaling approximately $276 million and interest totaling approximately $144 million as of July 24, 2015. These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $19 million and interest totaling approximately $3 million . The changes in Altria Group, Inc.’s accrued liability for tobacco and health litigation items, including related interest costs, for the periods specified below were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Accrued liability for tobacco and health litigation items at beginning of period $ 39 $ 3 $ 77 $ 7 Pre-tax charges for: Tobacco and health judgments 5 3 5 — Related interest costs — 1 — — Tentative agreement to resolve federal Engle progeny cases 43 — — — Implementation of corrective communications remedy pursuant to the federal government’s lawsuit — 31 — 31 Payments (10 ) (4 ) (5 ) (4 ) Accrued liability for tobacco and health litigation items at end of period $ 77 $ 34 $ 77 $ 34 The accrued liability for tobacco and health litigation items, including related interest costs, was included in liabilities on Altria Group, Inc.’s condensed consolidated balance sheets. Pre-tax charges for tobacco and health judgments, the tentative agreement to resolve federal Engle progeny cases (discussed below under “ Tentative Agreement to Resolve Federal Engle Progeny Cases ”) and corrective communications were included in marketing, administration and research costs on Altria Group, Inc.’s condensed consolidated statements of earnings. Pre-tax charges for related interest costs were included in interest and other debt expense, net on Altria Group, Inc.’s condensed consolidated statements of earnings. Security for Judgments To obtain stays of judgments pending current appeals, as of June 30, 2015 , PM USA has posted various forms of security totaling approximately $64 million , the majority of which has been collateralized with cash deposits that are included in other assets on the condensed consolidated balance sheet. Smoking and Health Litigation Overview Plaintiffs’ allegations of liability in smoking and health cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, nuisance, breach of express and implied warranties, breach of special duty, conspiracy, concert of action, violations of deceptive trade practice laws and consumer protection statutes, and claims under the federal and state anti-racketeering statutes. Plaintiffs in the smoking and health cases seek various forms of relief, including compensatory and punitive damages, treble/multiple damages and other statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and equitable relief. Defenses raised in these cases include lack of proximate cause, assumption of the risk, comparative fault and/or contributory negligence, statutes of limitations and preemption by the Federal Cigarette Labeling and Advertising Act. Non-Engle Progeny Litigation Summarized below are the non- Engle progeny smoking and health cases pending during 2015 in which verdicts were returned in favor of plaintiffs and against PM USA. Charts listing the verdicts for plaintiffs in the Engle progeny cases can be found in Smoking and Health Litigation - Engle Progeny Trial Results below. Schwarz : In March 2002 , an Oregon jury awarded $168,500 in compensatory damages and $150 million in punitive damages against PM USA. In May 2002 , the trial court reduced the punitive damages award to $100 million . In May 2006, the Oregon Court of Appeals affirmed the compensatory damages verdict, reversed the award of punitive damages and remanded the case to the trial court for a second trial to determine the amount of punitive damages, if any. In June 2006, plaintiff petitioned the Oregon Supreme Court to review the portion of the court of appeals’ decision reversing and remanding the case for a new trial on punitive damages. In June 2010, the Oregon Supreme Court affirmed the court of appeals’ decision and remanded the case to the trial court for a new trial limited to the question of punitive damages. In December 2010 , the Oregon Supreme Court reaffirmed its earlier ruling and awarded PM USA approximately $500,000 in costs. In March 2011, PM USA filed a claim against the plaintiff for its costs and disbursements on appeal, plus interest. Trial on the amount of punitive damages began in January 2012. In February 2012 , the jury awarded plaintiff $25 million in punitive damages. In September 2012, PM USA filed a notice of appeal from the trial court’s judgment with the Oregon Court of Appeals. On July 15, 2015, the Oregon Court of Appeals affirmed the judgment in favor of plaintiff. Federal Government’s Lawsuit : See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below for a discussion of the verdict and post-trial developments in the United States of America healthcare cost recovery case. Engle Class Action In July 2000 , in the second phase of the Engle smoking and health class action in Florida, a jury returned a verdict assessing punitive damages totaling approximately $145 billion against various defendants, including $74 billion against PM USA. Following entry of judgment, PM USA appealed. In May 2001, the trial court approved a stipulation providing that execution of the punitive damages component of the Engle judgment will remain stayed against PM USA and the other participating defendants through the completion of all judicial review. As a result of the stipulation, PM USA placed $500 million into an interest-bearing escrow account that, regardless of the outcome of the judicial review, was to be paid to the court and the court was to determine how to allocate or distribute it consistent with Florida Rules of Civil Procedure. In May 2003, the Florida Third District Court of Appeal reversed the judgment entered by the trial court and instructed the trial court to order the decertification of the class. Plaintiffs petitioned the Florida Supreme Court for further review. In July 2006, the Florida Supreme Court ordered that the punitive damages award be vacated, that the class approved by the trial court be decertified and that members of the decertified class could file individual actions against defendants within one year of issuance of the mandate. The court further declared the following Phase I findings are entitled to res judicata effect in such individual actions brought within one year of the issuance of the mandate: (i) that smoking causes various diseases; (ii) that nicotine in cigarettes is addictive; (iii) that defendants’ cigarettes were defective and unreasonably dangerous; (iv) that defendants concealed or omitted material information not otherwise known or available knowing that the material was false or misleading or failed to disclose a material fact concerning the health effects or addictive nature of smoking; (v) that defendants agreed to misrepresent information regarding the health effects or addictive nature of cigarettes with the intention of causing the public to rely on this information to their detriment; (vi) that defendants agreed to conceal or omit information regarding the health effects of cigarettes or their addictive nature with the intention that smokers would rely on the information to their detriment; (vii) that all defendants sold or supplied cigarettes that were defective; and (viii) that defendants were negligent. The court also reinstated compensatory damages awards totaling approximately $6.9 million to two individual plaintiffs and found that a third plaintiff’s claim was barred by the statute of limitations. In February 2008 , PM USA paid approximately $3 million , representing its share of compensatory damages and interest, to the two individual plaintiffs identified in the Florida Supreme Court’s order. In August 2006, PM USA sought rehearing from the Florida Supreme Court on parts of its July 2006 opinion, including the ruling (described above) that certain jury findings have res judicata effect in subsequent individual trials timely brought by Engle class members. The rehearing motion also asked, among other things, that legal errors that were raised but not expressly ruled upon in the Florida Third District Court of Appeal or in the Florida Supreme Court now be addressed. Plaintiffs also filed a motion for rehearing in August 2006 seeking clarification of the applicability of the statute of limitations to non-members of the decertified class. In December 2006, the Florida Supreme Court refused to revise its July 2006 ruling, except that it revised the set of Phase I findings entitled to res judicata effect by excluding finding (v) listed above (relating to agreement to misrepresent information), and added the finding that defendants sold or supplied cigarettes that, at the time of sale or supply, did not conform to the representations of fact made by defendants. In January 2007, the Florida Supreme Court issued the mandate from its revised opinion. Defendants then filed a motion with the Florida Third District Court of Appeal requesting that the court address legal errors that were previously raised by defendants but have not yet been addressed either by the Florida Third District Court of Appeal or by the Florida Supreme Court. In February 2007, the Florida Third District Court of Appeal denied defendants’ motion. In May 2007, defendants’ motion for a partial stay of the mandate pending the completion of appellate review was denied by the Florida Third District Court of Appeal. In May 2007, defendants filed a petition for writ of certiorari with the United States Supreme Court, which the United States Supreme Court denied later in 2007. In February 2008, the trial court decertified the class, except for purposes of the May 2001 bond stipulation, and formally vacated the punitive damages award pursuant to the Florida Supreme Court’s mandate. In April 2008, the trial court ruled that certain defendants, including PM USA, lacked standing with respect to allocation of the funds escrowed under the May 2001 bond stipulation and would receive no credit at that time from the $500 million paid by PM USA against any future punitive damages awards in cases brought by former Engle class members. In May 2008, the trial court, among other things, decertified the limited class maintained for purposes of the May 2001 bond stipulation and, in July 2008, severed the remaining plaintiffs’ claims except for those of Howard Engle. The only remaining plaintiff in the Engle case, Howard Engle, voluntarily dismissed his claims with prejudice. Engle Progeny Cases The deadline for filing Engle progeny cases, as required by the Florida Supreme Court’s Engle decision, expired in January 2008. As of July 24, 2015, approximately 3,125 state court cases were pending against PM USA or Altria Group, Inc. asserting individual claims by or on behalf of approximately 4,100 state court plaintiffs. Furthermore, as of July 24, 2015, approximately 425 cases were pending against PM USA in federal district court asserting individual claims by or on behalf of a similar number of federal court plaintiffs. Most of these federal cases are pending in the U.S. District Court for the Middle District of Florida. Moreover, most of these federal cases are subject to resolution pursuant to the agreement described below under Tentative Agreement to Resolve Federal Engle Progeny Cases . Because of a number of factors, including, but not limited to, docketing delays, duplicated filings and overlapping dismissal orders, these numbers are estimates. In July 2013, the district court issued an order transferring, for case management purposes, all the Middle District of Florida Engle progeny cases to a judge presiding in the District of Massachusetts. The order directed that the cases will remain in the Middle District of Florida and that such judge will be designated a judge of that district for purposes of managing the cases. The U.S. District Court for the Middle District of Florida dismissed a significant number of cases, of which approximately 750 were appealed by plaintiffs to the U.S. Court of Appeals for the Eleventh Circuit. In September 2014, the Eleventh Circuit affirmed those dismissals. Tentative Agreement to Resolve Federal Engle Progeny Cases In February 2015, PM USA, R.J. Reynolds Tobacco Company (“R.J. Reynolds”) and Lorillard Tobacco Company (“Lorillard”) reached a tentative agreement to resolve approximately 415 pending federal Engle progeny cases (the “Federal Engle Agreement”). Under the terms of the Federal Engle Agreement, PM USA paid into escrow approximately $43 million in March 2015, which was included in other current assets on Altria Group, Inc.’s condensed consolidated balance sheet at June 30, 2015. PM USA recorded a pre-tax provision of approximately $43 million in the first quarter of 2015. Federal cases that were in trial as of February 25, 2015 and those that have previously reached final verdict are not included in the Federal Engle Agreement. Engle progeny lawsuits pending in Florida state courts are also not part of the Federal Engle Agreement. The Federal Engle Agreement is conditioned on approval by all federal court plaintiffs in the cases resolved by the Federal Engle Agreement or as the parties otherwise agree. In February 2015, the U.S. District Court for the Middle District of Florida issued an order staying all upcoming federal trials pending final approval of the Federal Engle Agreement and, on May 11, 2015, approved the plaintiffs’ proposed plan for distribution among the plaintiffs of the amount in escrow. Engle Progeny Trial Results As of July 24, 2015, 81 federal and state Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court Engle decision. Forty-three verdicts were returned in favor of plaintiffs and two verdicts ( Graham and Skolnick ) that were initially returned in favor of plaintiffs were reversed on appeal and remain pending. Thirty-six verdicts were returned in favor of PM USA, of which 27 were state cases ( Gelep , Kalyvas , Gil de Rubio , Warrick , Willis , Russo (formerly Frazier ), C. Campbell , Rohr , Espinosa , Oliva , Weingart , Junious , Szymanski , Hancock , D. Cohen , LaMotte , J. Campbell , Dombey , Haldeman , Blasco , Gonzalez , Banks , Surico , Baum , Bishop , Vila and McMannis ) and 9 were federal cases ( Gollihue , McCray , Denton , Wilder , Jacobson , Reider , Davis , Starbuck and Sowers ). In addition, there have been a number of mistrials, only some of which have resulted in new trials as of July 24, 2015. The juries in the Reider and Banks cases returned zero damages verdicts in favor of PM USA . The juries in the Weingart and Hancock cases returned verdicts against PM USA awarding no damages, but the trial court in each case granted an additur . In the Russo case (formerly Frazier ), however, the Florida Third District Court of Appeal reversed the judgment in defendants’ favor in April 2012 and remanded the case for a new trial. Defendants sought review of the case in the Florida Supreme Court, which was granted in September 2013. In April 2015, the Florida Supreme Court affirmed the reversal, rejecting defendants’ argument that the statute of repose applies to fraud and conspiracy claims in Engle progeny cases, and defendants moved for a rehearing in the Florida Supreme Court. In the trial court, the case was retried and, on April 23, 2015, the jury returned a verdict in favor of defendants. The charts below list the verdicts and post-trial developments in certain Engle progeny cases in which verdicts were returned in favor of plaintiffs (including Hancock , where the verdict originally was returned in favor of PM USA). The first chart lists such cases that are pending as of July 24, 2015; the second chart lists such cases that were pending within the previous 12 months, but that are now concluded. Currently-Pending Cases ___________________________________________________________________________________________________ Plaintiff: Merino Date: July 2015 Verdict: On July 23, 2015, a Miami-Dade County jury returned a verdict in favor of plaintiff and against PM USA awarding $8 million in compensatory damages and $6.5 million in punitive damages. ___________________________________________________________________________________________________ Plaintiff: McCoy Date: July 2015 Verdict: On July 17, 2015, a Broward County jury returned a verdict in favor of plaintiff and against PM USA, R.J. Reynolds and Lorillard awarding $1.5 million in compensatory damages (to be divided among the defendants) and $3 million in punitive damages against each defendant. ___________________________________________________________________________________________________ Plaintiff: M. Brown Date: May 2015 Verdict: On May 1, 2015, a Duval County jury returned a verdict in favor of plaintiff and against PM USA in a partial retrial. In 2013, a jury returned a partial verdict against PM USA, but was deadlocked as to (i) the amount of compensatory damages, (ii) whether punitive damages should be awarded and, if so, (iii) the amount of punitive damages. In the partial retrial, the jury was asked to address these issues. On May 1, 2015, the jury awarded $6.375 million in compensatory damages, but did not award any punitive damages. Post-Trial Developments: On May 5, 2015, the trial court entered final judgment in favor of plaintiff and, on May 7, 2015, PM USA posted a bond in the amount of $5 million . On May 18, 2015, PM USA filed post-trial motions, including a motion to set aside the verdict and for a new trial. On May 19, 2015, PM USA filed a notice of appeal to the Florida First District Court of Appeal. On June 2, 2015, the Florida First District Court of Appeal stayed the appeal until the trial court disposes of the post-trial motions. ___________________________________________________________________________________________________ Plaintiff: Gore Date: March 2015 Verdict: An Indian River County jury returned a verdict in favor of plaintiff and against PM USA and R.J. Reynolds awarding $2 million in compensatory damages and allocating 23% of the fault to PM USA (an amount of $460,000 ). Post-Trial Developments: In April 2015, defendants filed post-trial motions, including motions to set aside the verdict and for a new trial. ____________________________________________________________________________________________________ Plaintiff: Pollari Date: March 2015 Verdict: A Broward County jury returned a verdict in favor of plaintiff and against PM USA and R.J. Reynolds awarding $10 million in compensatory damages (to be divided equally between the defendants) and $1.5 million in punitive damages against each defendant. Post-Trial Developments: In April 2015, PM USA filed post-trial motions, including motions to set aside the verdict and for a new trial. ___________________________________________________________________________________________________ Plaintiff: Zamboni Date: February 2015 Verdict: A jury in the U.S. District Court for the Middle District of Florida returned a verdict in favor of plaintiff and against PM USA and R.J. Reynolds awarding $340,000 in compensatory damages and allocating 10% of the fault to PM USA (an amount of $34,000 ). Post-Trial Developments: In April 2015, PM USA and |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information: PM USA, which is a 100% owned subsidiary of Altria Group, Inc., has guaranteed Altria Group, Inc.’s obligations under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper program (the “Guarantees”). Pursuant to the Guarantees, PM USA fully and unconditionally guarantees, as primary obligor, the payment and performance of Altria Group, Inc.’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below. The Guarantees provide that PM USA guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of PM USA under the Guarantees is absolute and unconditional irrespective of: any lack of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other circumstance that might otherwise constitute a defense available to, or a discharge of, Altria Group, Inc. or PM USA. The obligations of PM USA under the Guarantees are limited to the maximum amount as will not result in PM USA’s obligations under the Guarantees constituting a fraudulent transfer or conveyance, after giving effect to such maximum amount and all other contingent and fixed liabilities of PM USA that are relevant under Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Guarantees. For this purpose, “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors. PM USA will be unconditionally released and discharged from the Obligations upon the earliest to occur of: ▪ the date, if any, on which PM USA consolidates with or merges into Altria Group, Inc. or any successor; ▪ the date, if any, on which Altria Group, Inc. or any successor consolidates with or merges into PM USA; ▪ the payment in full of the Obligations pertaining to such Guarantees; and ▪ the rating of Altria Group, Inc.’s long-term senior unsecured debt by Standard & Poor’s of A or higher. At June 30, 2015 , the respective principal 100% owned subsidiaries of Altria Group, Inc. and PM USA were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their equity interests. The following sets forth the condensed consolidating balance sheets as of June 30, 2015 and December 31, 2014 , condensed consolidating statements of earnings and comprehensive earnings for the six and three months ended June 30, 2015 and 2014 , and condensed consolidating statements of cash flows for the six months ended June 30, 2015 and 2014 for Altria Group, Inc., PM USA and, collectively, Altria Group, Inc.’s other subsidiaries that are not guarantors of Altria Group, Inc.’s debt instruments (the “Non-Guarantor Subsidiaries”). The financial information is based on Altria Group, Inc.’s understanding of the Securities and Exchange Commission (“SEC”) interpretation and application of Rule 3-10 of SEC Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had PM USA and the Non-Guarantor Subsidiaries operated as independent entities. Altria Group, Inc. and PM USA account for investments in their subsidiaries under the equity method of accounting. Condensed Consolidating Balance Sheets June 30, 2015 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Assets Cash and cash equivalents $ 1,077 $ 1 $ 45 $ — $ 1,123 Receivables — 4 138 — 142 Inventories: Leaf tobacco — 494 371 — 865 Other raw materials — 131 70 — 201 Work in process — 10 357 — 367 Finished product — 167 314 — 481 — 802 1,112 — 1,914 Due from Altria Group, Inc. and subsidiaries — 2,686 1,192 (3,878 ) — Deferred income taxes 1 1,189 9 (56 ) 1,143 Other current assets 179 82 58 (8 ) 311 Total current assets 1,257 4,764 2,554 (3,942 ) 4,633 Property, plant and equipment, at cost — 3,103 1,702 — 4,805 Less accumulated depreciation — 2,116 698 — 2,814 — 987 1,004 — 1,991 Goodwill — — 5,285 — 5,285 Other intangible assets, net — 2 12,037 — 12,039 Investment in SABMiller 6,117 — — — 6,117 Investment in consolidated subsidiaries 11,404 2,769 — (14,173 ) — Finance assets, net — — 1,339 — 1,339 Due from Altria Group, Inc. and subsidiaries 4,790 — — (4,790 ) — Other assets 141 543 105 (324 ) 465 Total Assets $ 23,709 $ 9,065 $ 22,324 $ (23,229 ) $ 31,869 Condensed Consolidating Balance Sheets (Continued) June 30, 2015 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Liabilities Current portion of long-term debt $ 1,000 $ — $ 3 $ — $ 1,003 Accounts payable 19 147 124 — 290 Accrued liabilities: Marketing — 588 86 — 674 Employment costs 14 9 81 — 104 Settlement charges — 2,199 7 — 2,206 Other 322 467 236 (64 ) 961 Dividends payable 1,023 — — — 1,023 Due to Altria Group, Inc. and subsidiaries 3,503 374 1 (3,878 ) — Total current liabilities 5,881 3,784 538 (3,942 ) 6,261 Long-term debt 12,901 — 16 — 12,917 Deferred income taxes 1,732 — 4,603 (324 ) 6,011 Accrued pension costs 231 — 714 — 945 Accrued postretirement health care costs — 1,588 863 — 2,451 Due to Altria Group, Inc. and subsidiaries — — 4,790 (4,790 ) — Other liabilities 185 139 151 — 475 Total liabilities 20,930 5,511 11,675 (9,056 ) 29,060 Contingencies Redeemable noncontrolling interest — — 36 — 36 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,768 3,310 11,339 (14,649 ) 5,768 Earnings reinvested in the business 26,698 578 824 (1,402 ) 26,698 Accumulated other comprehensive losses (2,878 ) (334 ) (1,553 ) 1,887 (2,878 ) Cost of repurchased stock (27,744 ) — — — (27,744 ) Total stockholders’ equity attributable to Altria Group, Inc. 2,779 3,554 10,619 (14,173 ) 2,779 Noncontrolling interests — — (6 ) — (6 ) Total stockholders’ equity 2,779 3,554 10,613 (14,173 ) 2,773 Total Liabilities and Stockholders’ Equity $ 23,709 $ 9,065 $ 22,324 $ (23,229 ) $ 31,869 Condensed Consolidating Balance Sheets December 31, 2014 (in millions of dollars) Altria PM USA Non- Total Consolidated Assets Cash and cash equivalents $ 3,281 $ 3 $ 37 $ — $ 3,321 Receivables — 6 118 — 124 Inventories: Leaf tobacco — 616 375 — 991 Other raw materials — 132 68 — 200 Work in process — 4 425 — 429 Finished product — 134 286 — 420 — 886 1,154 — 2,040 Due from Altria Group, Inc. and subsidiaries 568 3,535 1,279 (5,382 ) — Deferred income taxes — 1,190 9 (56 ) 1,143 Other current assets 54 101 122 (27 ) 250 Total current assets 3,903 5,721 2,719 (5,465 ) 6,878 Property, plant and equipment, at cost — 3,112 1,643 — 4,755 Less accumulated depreciation — 2,091 681 — 2,772 — 1,021 962 — 1,983 Goodwill — — 5,285 — 5,285 Other intangible assets, net — 2 12,047 — 12,049 Investment in SABMiller 6,183 — — — 6,183 Investment in consolidated subsidiaries 10,665 2,775 — (13,440 ) — Finance assets, net — — 1,614 — 1,614 Due from Altria Group, Inc. and subsidiaries 4,790 — — (4,790 ) — Other assets 148 541 121 (327 ) 483 Total Assets $ 25,689 $ 10,060 $ 22,748 $ (24,022 ) $ 34,475 Condensed Consolidating Balance Sheets (Continued) December 31, 2014 (in millions of dollars) Altria PM USA Non- Total Consolidated Liabilities Current portion of long-term debt $ 1,000 $ — $ — $ — $ 1,000 Accounts payable 18 118 280 — 416 Accrued liabilities: Marketing — 505 113 — 618 Employment costs 18 10 158 — 186 Settlement charges — 3,495 5 — 3,500 Other 321 400 287 (83 ) 925 Dividends payable 1,028 — — — 1,028 Due to Altria Group, Inc. and subsidiaries 4,414 402 566 (5,382 ) — Total current liabilities 6,799 4,930 1,409 (5,465 ) 7,673 Long-term debt 13,693 — — — 13,693 Deferred income taxes 1,754 — 4,661 (327 ) 6,088 Accrued pension costs 233 — 779 — 1,012 Accrued postretirement health care costs — 1,608 853 — 2,461 Due to Altria Group, Inc. and subsidiaries — — 4,790 (4,790 ) — Other liabilities 196 151 156 — 503 Total liabilities 22,675 6,689 12,648 (10,582 ) 31,430 Contingencies Redeemable noncontrolling interest — — 35 — 35 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,735 3,310 10,688 (13,998 ) 5,735 Earnings reinvested in the business 26,277 402 995 (1,397 ) 26,277 Accumulated other comprehensive losses (2,682 ) (341 ) (1,623 ) 1,964 (2,682 ) Cost of repurchased stock (27,251 ) — — — (27,251 ) Total stockholders’ equity attributable to Altria Group, Inc. 3,014 3,371 10,069 (13,440 ) 3,014 Noncontrolling interests — — (4 ) — (4 ) Total stockholders’ equity 3,014 3,371 10,065 (13,440 ) 3,010 Total Liabilities and Stockholders’ Equity $ 25,689 $ 10,060 $ 22,748 $ (24,022 ) $ 34,475 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Six Months Ended June 30, 2015 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 10,878 $ 1,560 $ (21 ) $ 12,417 Cost of sales — 3,312 510 (21 ) 3,801 Excise taxes on products — 3,164 106 — 3,270 Gross profit — 4,402 944 — 5,346 Marketing, administration and research costs 89 959 205 — 1,253 Asset impairment and exit costs — — 4 — 4 Operating (expense) income (89 ) 3,443 735 — 4,089 Interest and other debt expense, net 292 — 112 — 404 Loss on early extinguishment of debt 228 — — — 228 Earnings from equity investment in SABMiller (359 ) — — — (359 ) (Loss) Earnings before income taxes and equity earnings of subsidiaries (250 ) 3,443 623 — 3,816 (Benefit) provision for income taxes (145 ) 1,274 220 — 1,349 Equity earnings of subsidiaries 2,571 126 — (2,697 ) — Net earnings 2,466 2,295 403 (2,697 ) 2,467 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria Group, Inc. $ 2,466 $ 2,295 $ 402 $ (2,697 ) $ 2,466 Net earnings $ 2,466 $ 2,295 $ 403 $ (2,697 ) $ 2,467 Other comprehensive (losses) earnings, net of deferred income taxes (196 ) 7 70 (77 ) (196 ) Comprehensive earnings 2,270 2,302 473 (2,774 ) 2,271 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to Altria Group, Inc. $ 2,270 $ 2,302 $ 472 $ (2,774 ) $ 2,270 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Six Months Ended June 30, 2014 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Net revenues $ — $ 10,261 $ 1,534 $ (22 ) $ 11,773 Cost of sales — 3,247 495 (22 ) 3,720 Excise taxes on products — 3,089 105 — 3,194 Gross profit — 3,925 934 — 4,859 Marketing, administration and research costs 104 867 187 — 1,158 Asset impairment and exit costs — (8 ) — — (8 ) Operating (expense) income (104 ) 3,066 747 — 3,709 Interest and other debt expense (income), net 308 (47 ) 122 — 383 Earnings from equity investment in SABMiller (425 ) — — — (425 ) Earnings before income taxes and equity earnings of subsidiaries 13 3,113 625 — 3,751 (Benefit) provision for income taxes (65 ) 1,154 225 — 1,314 Equity earnings of subsidiaries 2,359 117 — (2,476 ) — Net earnings 2,437 2,076 400 (2,476 ) 2,437 Net earnings attributable to noncontrolling interests — — — — — Net earnings attributable to Altria Group, Inc. $ 2,437 $ 2,076 $ 400 $ (2,476 ) $ 2,437 Net earnings $ 2,437 $ 2,076 $ 400 $ (2,476 ) $ 2,437 Other comprehensive earnings, net of deferred income taxes 149 5 42 (47 ) 149 Comprehensive earnings 2,586 2,081 442 (2,523 ) 2,586 Comprehensive earnings attributable to noncontrolling interests — — — — — Comprehensive earnings attributable to Altria Group, Inc. $ 2,586 $ 2,081 $ 442 $ (2,523 ) $ 2,586 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended June 30, 2015 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 5,810 $ 815 $ (12 ) $ 6,613 Cost of sales — 1,746 270 (12 ) 2,004 Excise taxes on products — 1,684 54 — 1,738 Gross profit — 2,380 491 — 2,871 Marketing, administration and research costs 47 494 102 — 643 Asset impairment and exit costs — — 4 — 4 Operating (expense) income (47 ) 1,886 385 — 2,224 Interest and other debt expense, net 138 1 56 — 195 Earnings from equity investment in SABMiller (225 ) — — — (225 ) Earnings before income taxes and equity earnings of subsidiaries 40 1,885 329 — 2,254 (Benefit) provision for income taxes (2 ) 690 117 — 805 Equity earnings of subsidiaries 1,406 65 — (1,471 ) — Net earnings 1,448 1,260 212 (1,471 ) 1,449 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria Group, Inc. $ 1,448 $ 1,260 $ 211 $ (1,471 ) $ 1,448 Net earnings $ 1,448 $ 1,260 $ 212 $ (1,471 ) $ 1,449 Other comprehensive earnings, net of deferred income taxes 67 3 35 (38 ) 67 Comprehensive earnings 1,515 1,263 247 (1,509 ) 1,516 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to $ 1,515 $ 1,263 $ 246 $ (1,509 ) $ 1,515 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended June 30, 2014 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 5,443 $ 831 $ (18 ) $ 6,256 Cost of sales — 1,706 280 (18 ) 1,968 Excise taxes on products — 1,629 56 — 1,685 Gross profit — 2,108 495 — 2,603 Marketing, administration and research costs 65 465 108 — 638 Asset impairment and exit costs — (10 ) — — (10 ) Operating (expense) income (65 ) 1,653 387 — 1,975 Interest and other debt expense, net 152 17 61 — 230 Earnings from equity investment in SABMiller (200 ) — — — (200 ) (Loss) earnings before income taxes and equity earnings of subsidiaries (17 ) 1,636 326 — 1,945 (Benefit) provision for income taxes (42 ) 607 118 — 683 Equity earnings of subsidiaries 1,237 64 — (1,301 ) — Net earnings 1,262 1,093 208 (1,301 ) 1,262 Net earnings attributable to noncontrolling interests — — — — — Net earnings attributable to Altria Group, Inc. $ 1,262 $ 1,093 $ 208 $ (1,301 ) $ 1,262 Net earnings $ 1,262 $ 1,093 $ 208 $ (1,301 ) $ 1,262 Other comprehensive earnings, net of deferred income taxes 89 3 20 (23 ) 89 Comprehensive earnings 1,351 1,096 228 (1,324 ) 1,351 Comprehensive earnings attributable to noncontrolling interests — — — — — Comprehensive earnings attributable to $ 1,351 $ 1,096 $ 228 $ (1,324 ) $ 1,351 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2015 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 2,316 $ 1,312 $ 311 $ (2,692 ) $ 1,247 Cash Provided by (Used in) Investing Activities Capital expenditures — (25 ) (74 ) — (99 ) Proceeds from finance assets — — 185 — 185 Other — 10 (9 ) — 1 Net cash (used in) provided by investing activities — (15 ) 102 — 87 Cash Provided by (Used in) Financing Activities Long-term debt repaid (793 ) — — — (793 ) Repurchases of common stock (455 ) — — — (455 ) Dividends paid on common stock (2,050 ) — — — (2,050 ) Changes in amounts due to/from Altria Group, Inc. and subsidiaries (996 ) 820 176 — — Premiums and fees related to early extinguishment of debt (226 ) — — — (226 ) Cash dividends paid to parent — (2,119 ) (573 ) 2,692 — Other — — (8 ) — (8 ) Net cash used in financing activities (4,520 ) (1,299 ) (405 ) 2,692 (3,532 ) Cash and cash equivalents: (Decrease) increase (2,204 ) (2 ) 8 — (2,198 ) Balance at beginning of period 3,281 3 37 — 3,321 Balance at end of period $ 1,077 $ 1 $ 45 $ — $ 1,123 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2014 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 2,121 $ 846 $ 223 $ (2,431 ) $ 759 Cash Provided by (Used in) Investing Activities Capital expenditures — (21 ) (39 ) — (60 ) Acquisition of Green Smoke, net of acquired cash — — (93 ) — (93 ) Proceeds from finance assets — — 189 — 189 Other — 70 (4 ) — 66 Net cash provided by investing activities — 49 53 — 102 Cash Provided by (Used in) Financing Activities Long-term debt repaid (525 ) — — — (525 ) Repurchases of common stock (404 ) — — — (404 ) Dividends paid on common stock (1,912 ) — — — (1,912 ) Changes in amounts due to/from Altria Group, Inc. and subsidiaries (1,248 ) 1,042 206 — — Cash dividends paid to parent — (1,938 ) (493 ) 2,431 — Other — — (2 ) — (2 ) Net cash used in financing activities (4,089 ) (896 ) (289 ) 2,431 (2,843 ) Cash and cash equivalents: Decrease (1,968 ) (1 ) (13 ) — (1,982 ) Balance at beginning of period 3,114 1 60 — 3,175 Balance at end of period $ 1,146 $ — $ 47 $ — $ 1,193 |
Recent Accounting Guidance Not
Recent Accounting Guidance Not Yet Adopted | 6 Months Ended |
Jun. 30, 2015 | |
Recent Accounting Guidance Not Yet Adopted [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recent Accounting Guidance Not Yet Adopted: In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. As a result of a July 9, 2015 FASB approval, the new guidance will be effective for Altria Group, Inc. for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Altria Group, Inc. is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In April 2015, the FASB issued authoritative guidance to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as a deferred charge ( i.e. , an asset). For Altria Group, Inc., the new guidance will be effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The guidance requires all prior period balance sheets to be adjusted retrospectively and early adoption is permitted. Altria Group, Inc. will adopt the new guidance by the first quarter of 2016. At June 30, 2015 and December 31, 2014, Altria Group, Inc. had $77 million and $83 million , respectively, of debt issuance costs included in other assets on its condensed consolidated balance sheets. |
Contingencies (Policies)
Contingencies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Loss Contingency [Abstract] | |
Contingencies | Altria Group, Inc. and its subsidiaries record provisions in the condensed consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except to the extent discussed elsewhere in this Note 9 . Contingencies : (i) management has concluded that it is not probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss that could result from an unfavorable outcome in any of the pending tobacco-related cases; and (iii) accordingly, management has not provided any amounts in the condensed consolidated financial statements for unfavorable outcomes, if any. Litigation defense costs are expensed as incurred. |
Environmental Costs | Altria Group, Inc. provides for expenses associated with environmental remediation obligations on an undiscounted basis when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change. |
Background and Basis of Prese21
Background and Basis of Presentation Organization, Consolidation and Presentation of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | Altria Group, Inc.’s share repurchase activity was as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions, except per share data) Total number of shares repurchased 8.8 10.8 5.2 3.3 Aggregate cost of shares repurchased $ 455 $ 404 $ 263 $ 132 Average price per share of shares repurchased $ 51.63 $ 37.40 $ 50.64 $ 40.72 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic pension cost consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 43 $ 34 $ 22 $ 17 Interest cost 168 172 84 86 Expected return on plan assets (270 ) (260 ) (135 ) (130 ) Amortization: Net loss 117 75 58 37 Prior service cost 4 5 2 2 Net periodic pension cost $ 62 $ 26 $ 31 $ 12 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Net postretirement health care costs consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 9 $ 8 $ 5 $ 4 Interest cost 51 54 25 27 Amortization: Net loss 23 14 11 7 Prior service credit (20 ) (21 ) (10 ) (10 ) Net postretirement health care costs $ 63 $ 55 $ 31 $ 28 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Net earnings attributable to Altria Group, Inc. $ 2,466 $ 2,437 $ 1,448 $ 1,262 Less: Distributed and undistributed earnings attributable to unvested restricted shares and restricted stock units (also known as deferred stock) (5 ) (6 ) (3 ) (3 ) Earnings for basic and diluted EPS $ 2,461 $ 2,431 $ 1,445 $ 1,259 Weighted-average shares for basic and diluted EPS 1,964 1,983 1,962 1,980 |
Other Comprehensive Earnings_24
Other Comprehensive Earnings/Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria Group, Inc.: For the Six Months Ended June 30, 2015 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2014 $ (2 ) $ (2,040 ) $ (640 ) $ (2,682 ) Other comprehensive losses before reclassifications (1 ) — (434 ) (435 ) Deferred income taxes — — 151 151 Other comprehensive losses before reclassifications, net of deferred income taxes (1 ) — (283 ) (284 ) Amounts reclassified to net earnings — 134 9 143 Deferred income taxes — (53 ) (2 ) (55 ) Amounts reclassified to net earnings, net of deferred income taxes — 81 7 88 Other comprehensive (losses) earnings, net of deferred income taxes (1 ) 81 (276 ) (1) (196 ) Balances, June 30, 2015 $ (3 ) $ (1,959 ) $ (916 ) $ (2,878 ) For the Three Months Ended June 30, 2015 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, March 31, 2015 $ (3 ) $ (1,998 ) $ (944 ) $ (2,945 ) Other comprehensive earnings before reclassifications — — 37 37 Deferred income taxes — — (13 ) (13 ) Other comprehensive earnings before reclassifications, net of deferred income taxes — — 24 24 Amounts reclassified to net earnings — 66 5 71 Deferred income taxes — (27 ) (1 ) (28 ) Amounts reclassified to net earnings, net of deferred income taxes — 39 4 43 Other comprehensive earnings, net of deferred income taxes — 39 28 (1) 67 Balances, June 30, 2015 $ (3 ) $ (1,959 ) $ (916 ) $ (2,878 ) For the Six Months Ended June 30, 2014 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2013 $ — $ (1,273 ) $ (105 ) $ (1,378 ) Other comprehensive earnings before reclassifications 1 — 150 151 Deferred income taxes — — (53 ) (53 ) Other comprehensive earnings before reclassifications, net of deferred income taxes 1 — 97 98 Amounts reclassified to net earnings — 80 3 83 Deferred income taxes — (31 ) (1 ) (32 ) Amounts reclassified to net earnings, net of deferred income taxes — 49 2 51 Other comprehensive earnings, net of deferred income taxes 1 49 99 (1) 149 Balances, June 30, 2014 $ 1 $ (1,224 ) $ (6 ) $ (1,229 ) For the Three Months Ended June 30, 2014 Currency Translation Adjustments Benefit Plans SABMiller Accumulated Other Comprehensive Losses (in millions) Balances, March 31, 2014 $ — $ (1,248 ) $ (70 ) $ (1,318 ) Other comprehensive earnings before reclassifications 1 — 99 100 Deferred income taxes — — (35 ) (35 ) Other comprehensive earnings before reclassifications, net of deferred income taxes 1 — 64 65 Amounts reclassified to net earnings — 39 — 39 Deferred income taxes — (15 ) — (15 ) Amounts reclassified to net earnings, net of deferred income taxes — 24 — 24 Other comprehensive earnings, net of deferred income taxes 1 24 64 (1) 89 Balances, June 30, 2014 $ 1 $ (1,224 ) $ (6 ) $ (1,229 ) (1) For the six and three months ended June 30, 2015 and 2014 , Altria Group, Inc.’s proportionate share of SABMiller’s other comprehensive earnings/losses consisted primarily of currency translation adjustments. |
Reclassification out of Accumulated Other Comprehensive Income | The following table sets forth pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Benefit Plans: (1) Net loss $ 150 $ 96 $ 74 $ 47 Prior service cost/credit (16 ) (16 ) (8 ) (8 ) 134 80 66 39 SABMiller (2) 9 3 5 — Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 143 $ 83 $ 71 $ 39 (1) Amounts are included in net defined benefit plan costs. For further details, see Note 3 . Benefit Plans. (2) Amounts are included in earnings from equity investment in SABMiller. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment data were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Net revenues: Smokeable products $ 11,195 $ 10,569 $ 5,974 $ 5,611 Smokeless products 911 879 481 464 Wine 295 275 161 146 All other 16 50 (3 ) 35 Net revenues $ 12,417 $ 11,773 $ 6,613 $ 6,256 Earnings before income taxes: Operating companies income (loss): Smokeable products $ 3,710 $ 3,320 $ 2,024 $ 1,789 Smokeless products 544 524 293 285 Wine 62 50 35 28 All other (104 ) (54 ) (63 ) (53 ) Amortization of intangibles (10 ) (10 ) (5 ) (5 ) General corporate expenses (113 ) (121 ) (60 ) (69 ) Operating income 4,089 3,709 2,224 1,975 Interest and other debt expense, net (404 ) (383 ) (195 ) (230 ) Loss on early extinguishment of debt (228 ) — — — Earnings from equity investment in SABMiller 359 425 225 200 Earnings before income taxes $ 3,816 $ 3,751 $ 2,254 $ 1,945 |
Schedule of NPM Adjustment Items [Table Text Block] | Non-Participating Manufacturer (“NPM”) Adjustment Items - For the six and three months ended June 30, 2014, pre-tax income for NPM adjustment items was recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2014 2014 (in millions) Smokeable products segment $ 43 $ 43 Interest and other debt expense, net 47 (17 ) Total $ 90 $ 26 |
Schedule of Pre-tax Tobacco and Health Litigation Items [Table Text Block] | Tobacco and Health Litigation Items - For the six and three months ended June 30, 2015 and 2014 , pre-tax charges related to certain tobacco and health litigation items were recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Smokeable products segment $ 48 $ 19 $ 5 $ 16 General corporate — 15 — 15 Interest and other debt expense, net — 1 — — Total $ 48 $ 35 $ 5 $ 31 |
Finance Assets, net (Tables)
Finance Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Allowance for Losses on Finance Assets | The activity in the allowance for losses on finance assets for the six months ended June 30, 2015 and 2014 was as follows: For the Six Months Ended June 30, 2015 2014 (in millions) Balance at beginning of the year $ 42 $ 52 Decrease to allowance — (10 ) Balance at June 30 $ 42 $ 42 |
Schedule of Credit Quality of Investments in Finance Assets | The credit quality of PMCC’s investments in finance leases as assigned by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”) at June 30, 2015 and December 31, 2014 was as follows: June 30, 2015 December 31, 2014 (in millions) Credit Rating by Standard & Poor’s/Moody’s: “AAA/Aaa” to “A-/A3” $ 261 $ 417 “BBB+/Baa1” to “BBB-/Baa3” 725 833 “BB+/Ba1” and Lower 395 406 Total $ 1,381 $ 1,656 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies By Contingency Text Block | The changes in Altria Group, Inc.’s accrued liability for tobacco and health litigation items, including related interest costs, for the periods specified below were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Accrued liability for tobacco and health litigation items at beginning of period $ 39 $ 3 $ 77 $ 7 Pre-tax charges for: Tobacco and health judgments 5 3 5 — Related interest costs — 1 — — Tentative agreement to resolve federal Engle progeny cases 43 — — — Implementation of corrective communications remedy pursuant to the federal government’s lawsuit — 31 — 31 Payments (10 ) (4 ) (5 ) (4 ) Accrued liability for tobacco and health litigation items at end of period $ 77 $ 34 $ 77 $ 34 |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies By Contingency Text Block | The table below lists the number of certain tobacco-related cases pending in the United States against PM USA and, in some instances, Altria Group, Inc. as of July 24, 2015, July 18, 2014 and July 22, 2013 . Type of Case Number of Cases Number of Cases Number of Cases Individual Smoking and Health Cases (1) 65 67 73 Smoking and Health Class Actions and Aggregated Claims Litigation (2) 5 5 6 Health Care Cost Recovery Actions (3) 1 1 1 “Lights/Ultra Lights” Class Actions 12 14 15 |
Condensed Consolidating Finan28
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheets June 30, 2015 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Assets Cash and cash equivalents $ 1,077 $ 1 $ 45 $ — $ 1,123 Receivables — 4 138 — 142 Inventories: Leaf tobacco — 494 371 — 865 Other raw materials — 131 70 — 201 Work in process — 10 357 — 367 Finished product — 167 314 — 481 — 802 1,112 — 1,914 Due from Altria Group, Inc. and subsidiaries — 2,686 1,192 (3,878 ) — Deferred income taxes 1 1,189 9 (56 ) 1,143 Other current assets 179 82 58 (8 ) 311 Total current assets 1,257 4,764 2,554 (3,942 ) 4,633 Property, plant and equipment, at cost — 3,103 1,702 — 4,805 Less accumulated depreciation — 2,116 698 — 2,814 — 987 1,004 — 1,991 Goodwill — — 5,285 — 5,285 Other intangible assets, net — 2 12,037 — 12,039 Investment in SABMiller 6,117 — — — 6,117 Investment in consolidated subsidiaries 11,404 2,769 — (14,173 ) — Finance assets, net — — 1,339 — 1,339 Due from Altria Group, Inc. and subsidiaries 4,790 — — (4,790 ) — Other assets 141 543 105 (324 ) 465 Total Assets $ 23,709 $ 9,065 $ 22,324 $ (23,229 ) $ 31,869 Condensed Consolidating Balance Sheets (Continued) June 30, 2015 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Liabilities Current portion of long-term debt $ 1,000 $ — $ 3 $ — $ 1,003 Accounts payable 19 147 124 — 290 Accrued liabilities: Marketing — 588 86 — 674 Employment costs 14 9 81 — 104 Settlement charges — 2,199 7 — 2,206 Other 322 467 236 (64 ) 961 Dividends payable 1,023 — — — 1,023 Due to Altria Group, Inc. and subsidiaries 3,503 374 1 (3,878 ) — Total current liabilities 5,881 3,784 538 (3,942 ) 6,261 Long-term debt 12,901 — 16 — 12,917 Deferred income taxes 1,732 — 4,603 (324 ) 6,011 Accrued pension costs 231 — 714 — 945 Accrued postretirement health care costs — 1,588 863 — 2,451 Due to Altria Group, Inc. and subsidiaries — — 4,790 (4,790 ) — Other liabilities 185 139 151 — 475 Total liabilities 20,930 5,511 11,675 (9,056 ) 29,060 Contingencies Redeemable noncontrolling interest — — 36 — 36 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,768 3,310 11,339 (14,649 ) 5,768 Earnings reinvested in the business 26,698 578 824 (1,402 ) 26,698 Accumulated other comprehensive losses (2,878 ) (334 ) (1,553 ) 1,887 (2,878 ) Cost of repurchased stock (27,744 ) — — — (27,744 ) Total stockholders’ equity attributable to Altria Group, Inc. 2,779 3,554 10,619 (14,173 ) 2,779 Noncontrolling interests — — (6 ) — (6 ) Total stockholders’ equity 2,779 3,554 10,613 (14,173 ) 2,773 Total Liabilities and Stockholders’ Equity $ 23,709 $ 9,065 $ 22,324 $ (23,229 ) $ 31,869 Condensed Consolidating Balance Sheets December 31, 2014 (in millions of dollars) Altria PM USA Non- Total Consolidated Assets Cash and cash equivalents $ 3,281 $ 3 $ 37 $ — $ 3,321 Receivables — 6 118 — 124 Inventories: Leaf tobacco — 616 375 — 991 Other raw materials — 132 68 — 200 Work in process — 4 425 — 429 Finished product — 134 286 — 420 — 886 1,154 — 2,040 Due from Altria Group, Inc. and subsidiaries 568 3,535 1,279 (5,382 ) — Deferred income taxes — 1,190 9 (56 ) 1,143 Other current assets 54 101 122 (27 ) 250 Total current assets 3,903 5,721 2,719 (5,465 ) 6,878 Property, plant and equipment, at cost — 3,112 1,643 — 4,755 Less accumulated depreciation — 2,091 681 — 2,772 — 1,021 962 — 1,983 Goodwill — — 5,285 — 5,285 Other intangible assets, net — 2 12,047 — 12,049 Investment in SABMiller 6,183 — — — 6,183 Investment in consolidated subsidiaries 10,665 2,775 — (13,440 ) — Finance assets, net — — 1,614 — 1,614 Due from Altria Group, Inc. and subsidiaries 4,790 — — (4,790 ) — Other assets 148 541 121 (327 ) 483 Total Assets $ 25,689 $ 10,060 $ 22,748 $ (24,022 ) $ 34,475 Condensed Consolidating Balance Sheets (Continued) December 31, 2014 (in millions of dollars) Altria PM USA Non- Total Consolidated Liabilities Current portion of long-term debt $ 1,000 $ — $ — $ — $ 1,000 Accounts payable 18 118 280 — 416 Accrued liabilities: Marketing — 505 113 — 618 Employment costs 18 10 158 — 186 Settlement charges — 3,495 5 — 3,500 Other 321 400 287 (83 ) 925 Dividends payable 1,028 — — — 1,028 Due to Altria Group, Inc. and subsidiaries 4,414 402 566 (5,382 ) — Total current liabilities 6,799 4,930 1,409 (5,465 ) 7,673 Long-term debt 13,693 — — — 13,693 Deferred income taxes 1,754 — 4,661 (327 ) 6,088 Accrued pension costs 233 — 779 — 1,012 Accrued postretirement health care costs — 1,608 853 — 2,461 Due to Altria Group, Inc. and subsidiaries — — 4,790 (4,790 ) — Other liabilities 196 151 156 — 503 Total liabilities 22,675 6,689 12,648 (10,582 ) 31,430 Contingencies Redeemable noncontrolling interest — — 35 — 35 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,735 3,310 10,688 (13,998 ) 5,735 Earnings reinvested in the business 26,277 402 995 (1,397 ) 26,277 Accumulated other comprehensive losses (2,682 ) (341 ) (1,623 ) 1,964 (2,682 ) Cost of repurchased stock (27,251 ) — — — (27,251 ) Total stockholders’ equity attributable to Altria Group, Inc. 3,014 3,371 10,069 (13,440 ) 3,014 Noncontrolling interests — — (4 ) — (4 ) Total stockholders’ equity 3,014 3,371 10,065 (13,440 ) 3,010 Total Liabilities and Stockholders’ Equity $ 25,689 $ 10,060 $ 22,748 $ (24,022 ) $ 34,475 |
Condensed Consolidating Statements of Earnings and Comprehensive Earnings | Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Six Months Ended June 30, 2015 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 10,878 $ 1,560 $ (21 ) $ 12,417 Cost of sales — 3,312 510 (21 ) 3,801 Excise taxes on products — 3,164 106 — 3,270 Gross profit — 4,402 944 — 5,346 Marketing, administration and research costs 89 959 205 — 1,253 Asset impairment and exit costs — — 4 — 4 Operating (expense) income (89 ) 3,443 735 — 4,089 Interest and other debt expense, net 292 — 112 — 404 Loss on early extinguishment of debt 228 — — — 228 Earnings from equity investment in SABMiller (359 ) — — — (359 ) (Loss) Earnings before income taxes and equity earnings of subsidiaries (250 ) 3,443 623 — 3,816 (Benefit) provision for income taxes (145 ) 1,274 220 — 1,349 Equity earnings of subsidiaries 2,571 126 — (2,697 ) — Net earnings 2,466 2,295 403 (2,697 ) 2,467 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria Group, Inc. $ 2,466 $ 2,295 $ 402 $ (2,697 ) $ 2,466 Net earnings $ 2,466 $ 2,295 $ 403 $ (2,697 ) $ 2,467 Other comprehensive (losses) earnings, net of deferred income taxes (196 ) 7 70 (77 ) (196 ) Comprehensive earnings 2,270 2,302 473 (2,774 ) 2,271 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to Altria Group, Inc. $ 2,270 $ 2,302 $ 472 $ (2,774 ) $ 2,270 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Six Months Ended June 30, 2014 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Net revenues $ — $ 10,261 $ 1,534 $ (22 ) $ 11,773 Cost of sales — 3,247 495 (22 ) 3,720 Excise taxes on products — 3,089 105 — 3,194 Gross profit — 3,925 934 — 4,859 Marketing, administration and research costs 104 867 187 — 1,158 Asset impairment and exit costs — (8 ) — — (8 ) Operating (expense) income (104 ) 3,066 747 — 3,709 Interest and other debt expense (income), net 308 (47 ) 122 — 383 Earnings from equity investment in SABMiller (425 ) — — — (425 ) Earnings before income taxes and equity earnings of subsidiaries 13 3,113 625 — 3,751 (Benefit) provision for income taxes (65 ) 1,154 225 — 1,314 Equity earnings of subsidiaries 2,359 117 — (2,476 ) — Net earnings 2,437 2,076 400 (2,476 ) 2,437 Net earnings attributable to noncontrolling interests — — — — — Net earnings attributable to Altria Group, Inc. $ 2,437 $ 2,076 $ 400 $ (2,476 ) $ 2,437 Net earnings $ 2,437 $ 2,076 $ 400 $ (2,476 ) $ 2,437 Other comprehensive earnings, net of deferred income taxes 149 5 42 (47 ) 149 Comprehensive earnings 2,586 2,081 442 (2,523 ) 2,586 Comprehensive earnings attributable to noncontrolling interests — — — — — Comprehensive earnings attributable to Altria Group, Inc. $ 2,586 $ 2,081 $ 442 $ (2,523 ) $ 2,586 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended June 30, 2015 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 5,810 $ 815 $ (12 ) $ 6,613 Cost of sales — 1,746 270 (12 ) 2,004 Excise taxes on products — 1,684 54 — 1,738 Gross profit — 2,380 491 — 2,871 Marketing, administration and research costs 47 494 102 — 643 Asset impairment and exit costs — — 4 — 4 Operating (expense) income (47 ) 1,886 385 — 2,224 Interest and other debt expense, net 138 1 56 — 195 Earnings from equity investment in SABMiller (225 ) — — — (225 ) Earnings before income taxes and equity earnings of subsidiaries 40 1,885 329 — 2,254 (Benefit) provision for income taxes (2 ) 690 117 — 805 Equity earnings of subsidiaries 1,406 65 — (1,471 ) — Net earnings 1,448 1,260 212 (1,471 ) 1,449 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria Group, Inc. $ 1,448 $ 1,260 $ 211 $ (1,471 ) $ 1,448 Net earnings $ 1,448 $ 1,260 $ 212 $ (1,471 ) $ 1,449 Other comprehensive earnings, net of deferred income taxes 67 3 35 (38 ) 67 Comprehensive earnings 1,515 1,263 247 (1,509 ) 1,516 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to $ 1,515 $ 1,263 $ 246 $ (1,509 ) $ 1,515 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended June 30, 2014 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 5,443 $ 831 $ (18 ) $ 6,256 Cost of sales — 1,706 280 (18 ) 1,968 Excise taxes on products — 1,629 56 — 1,685 Gross profit — 2,108 495 — 2,603 Marketing, administration and research costs 65 465 108 — 638 Asset impairment and exit costs — (10 ) — — (10 ) Operating (expense) income (65 ) 1,653 387 — 1,975 Interest and other debt expense, net 152 17 61 — 230 Earnings from equity investment in SABMiller (200 ) — — — (200 ) (Loss) earnings before income taxes and equity earnings of subsidiaries (17 ) 1,636 326 — 1,945 (Benefit) provision for income taxes (42 ) 607 118 — 683 Equity earnings of subsidiaries 1,237 64 — (1,301 ) — Net earnings 1,262 1,093 208 (1,301 ) 1,262 Net earnings attributable to noncontrolling interests — — — — — Net earnings attributable to Altria Group, Inc. $ 1,262 $ 1,093 $ 208 $ (1,301 ) $ 1,262 Net earnings $ 1,262 $ 1,093 $ 208 $ (1,301 ) $ 1,262 Other comprehensive earnings, net of deferred income taxes 89 3 20 (23 ) 89 Comprehensive earnings 1,351 1,096 228 (1,324 ) 1,351 Comprehensive earnings attributable to noncontrolling interests — — — — — Comprehensive earnings attributable to $ 1,351 $ 1,096 $ 228 $ (1,324 ) $ 1,351 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2015 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 2,316 $ 1,312 $ 311 $ (2,692 ) $ 1,247 Cash Provided by (Used in) Investing Activities Capital expenditures — (25 ) (74 ) — (99 ) Proceeds from finance assets — — 185 — 185 Other — 10 (9 ) — 1 Net cash (used in) provided by investing activities — (15 ) 102 — 87 Cash Provided by (Used in) Financing Activities Long-term debt repaid (793 ) — — — (793 ) Repurchases of common stock (455 ) — — — (455 ) Dividends paid on common stock (2,050 ) — — — (2,050 ) Changes in amounts due to/from Altria Group, Inc. and subsidiaries (996 ) 820 176 — — Premiums and fees related to early extinguishment of debt (226 ) — — — (226 ) Cash dividends paid to parent — (2,119 ) (573 ) 2,692 — Other — — (8 ) — (8 ) Net cash used in financing activities (4,520 ) (1,299 ) (405 ) 2,692 (3,532 ) Cash and cash equivalents: (Decrease) increase (2,204 ) (2 ) 8 — (2,198 ) Balance at beginning of period 3,281 3 37 — 3,321 Balance at end of period $ 1,077 $ 1 $ 45 $ — $ 1,123 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2014 (in millions of dollars) Altria Group, Inc. PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 2,121 $ 846 $ 223 $ (2,431 ) $ 759 Cash Provided by (Used in) Investing Activities Capital expenditures — (21 ) (39 ) — (60 ) Acquisition of Green Smoke, net of acquired cash — — (93 ) — (93 ) Proceeds from finance assets — — 189 — 189 Other — 70 (4 ) — 66 Net cash provided by investing activities — 49 53 — 102 Cash Provided by (Used in) Financing Activities Long-term debt repaid (525 ) — — — (525 ) Repurchases of common stock (404 ) — — — (404 ) Dividends paid on common stock (1,912 ) — — — (1,912 ) Changes in amounts due to/from Altria Group, Inc. and subsidiaries (1,248 ) 1,042 206 — — Cash dividends paid to parent — (1,938 ) (493 ) 2,431 — Other — — (2 ) — (2 ) Net cash used in financing activities (4,089 ) (896 ) (289 ) 2,431 (2,843 ) Cash and cash equivalents: Decrease (1,968 ) (1 ) (13 ) — (1,982 ) Balance at beginning of period 3,114 1 60 — 3,175 Balance at end of period $ 1,146 $ — $ 47 $ — $ 1,193 |
Background and Basis of Prese29
Background and Basis of Presentation (Equity Method Investment) (Narrative) (Details) | Jun. 30, 2015 |
SABMiller Plc [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage (approximately) | 27.00% |
Background and Basis of Prese30
Background and Basis of Presentation Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 13 Months Ended | 18 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jul. 31, 2015 | Sep. 30, 2014 | Jul. 31, 2014 | Aug. 31, 2013 | Apr. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchase of common stock, shares | 5.2 | 3.3 | 8.8 | 10.8 | ||||||
Repurchases of common stock, value | $ 263,000,000 | $ 132,000,000 | $ 455,000,000 | $ 404,000,000 | $ 939,000,000 | |||||
Average price of repurchased shares, per share | $ 50.64 | $ 40.72 | $ 51.63 | $ 37.40 | ||||||
April 2013 Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Planned share repurchase program | $ 1,000,000,000 | $ 300,000,000 | ||||||||
Repurchase of common stock, shares | 27.1 | |||||||||
Average price of repurchased shares, per share | $ 36.97 | |||||||||
July 2014 Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Planned share repurchase program | $ 1,000,000,000 | |||||||||
Amount remaining in the repurchase program | $ 63,000,000 | $ 63,000,000 | ||||||||
Subsequent Event [Member] | July 2014 Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchase of common stock, shares | 20.4 | |||||||||
Average price of repurchased shares, per share | $ 48.90 | |||||||||
Subsequent Event [Member] | July 2015 Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Planned share repurchase program | $ 1,000,000,000 |
Acquisition of Green Smoke Narr
Acquisition of Green Smoke Narrative (Details) $ in Millions | 1 Months Ended |
Apr. 30, 2014USD ($) | |
Business Acquisition, Green Smoke [Member] | |
Business Acquisition [Line Items] | |
Total purchase price | $ 130 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - Pension Plan [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 9 |
Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Anticipated additional employer contributions | 10 |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Anticipated additional employer contributions | $ 40 |
Benefit Plans (Schedule Of Comp
Benefit Plans (Schedule Of Components Of Net Periodic Pension Cost) (Details) - Pension Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $ 22 | $ 17 | $ 43 | $ 34 |
Interest cost | 84 | 86 | 168 | 172 |
Expected return on plan assets | (135) | (130) | (270) | (260) |
Amortization of net loss | 58 | 37 | 117 | 75 |
Amortization of prior service cost | 2 | 2 | 4 | 5 |
Net Periodic Benefit Cost | $ 31 | $ 12 | $ 62 | $ 26 |
Benefit Plans (Postretirement H
Benefit Plans (Postretirement Health Care Costs) (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5 | $ 4 | $ 9 | $ 8 |
Interest cost | 25 | 27 | 51 | 54 |
Amortization of net loss | 11 | 7 | 23 | 14 |
Amortization of prior service credit | (10) | (10) | (20) | (21) |
Net Periodic Benefit Cost | $ 31 | $ 28 | $ 63 | $ 55 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Altria Group, Inc. | $ 1,448 | $ 1,262 | $ 2,466 | $ 2,437 |
Less: Distributed and undistributed earnings attributable to unvested restricted shares and restricted stock units (also known as deferred stock) | (3) | (3) | (5) | (6) |
Earnings for Basic and Diluted EPS | $ 1,445 | $ 1,259 | $ 2,461 | $ 2,431 |
Weighted-average shares for basic and diluted EPS | 1,962 | 1,980 | 1,964 | 1,983 |
Other Comprehensive Earnings_36
Other Comprehensive Earnings/Losses (Changes in Each Component of Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balances at beginning of period | $ (2,945) | $ (1,318) | $ (2,682) | $ (1,378) | $ (1,378) | |
Other comprehensive earnings (losses) before reclassifications | 37 | 100 | (435) | 151 | ||
Deferred income taxes | (13) | (35) | 151 | (53) | ||
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | 24 | 65 | (284) | 98 | ||
Amounts reclassified to earnings | 71 | 39 | 143 | 83 | ||
Deferred income taxes | (28) | (15) | (55) | (32) | ||
Amounts reclassified to net earnings, net of deferred income taxes | 43 | 24 | 88 | 51 | ||
Other comprehensive earnings (losses), net of deferred income taxes | 67 | 89 | (196) | 149 | (1,304) | |
Balances at end of period | (2,878) | (1,229) | (2,878) | (1,229) | (2,682) | |
Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balances at beginning of period | (3) | 0 | (2) | |||
Other comprehensive earnings (losses) before reclassifications | 0 | 1 | (1) | 1 | ||
Deferred income taxes | 0 | 0 | 0 | 0 | ||
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | 0 | 1 | (1) | 1 | ||
Amounts reclassified to earnings | 0 | 0 | 0 | 0 | ||
Deferred income taxes | 0 | 0 | 0 | 0 | ||
Amounts reclassified to net earnings, net of deferred income taxes | 0 | 0 | 0 | 0 | ||
Other comprehensive earnings (losses), net of deferred income taxes | 0 | 1 | (1) | 1 | ||
Balances at end of period | (3) | 1 | (3) | 1 | (2) | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balances at beginning of period | (1,998) | (1,248) | (2,040) | (1,273) | (1,273) | |
Other comprehensive earnings (losses) before reclassifications | 0 | 0 | 0 | 0 | ||
Deferred income taxes | 0 | 0 | 0 | 0 | ||
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | 0 | 0 | 0 | 0 | ||
Amounts reclassified to earnings | 66 | 39 | 134 | 80 | ||
Deferred income taxes | (27) | (15) | (53) | (31) | ||
Amounts reclassified to net earnings, net of deferred income taxes | 39 | 24 | 81 | 49 | ||
Other comprehensive earnings (losses), net of deferred income taxes | 39 | 24 | 81 | 49 | ||
Balances at end of period | (1,959) | (1,224) | (1,959) | (1,224) | (2,040) | |
SABMiller Plc [Member] | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balances at beginning of period | (944) | (70) | (640) | (105) | (105) | |
Other comprehensive earnings (losses) before reclassifications | 37 | 99 | (434) | 150 | ||
Deferred income taxes | (13) | (35) | 151 | (53) | ||
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | 24 | 64 | (283) | 97 | ||
Amounts reclassified to earnings | 5 | 0 | 9 | 3 | ||
Deferred income taxes | (1) | 0 | (2) | (1) | ||
Amounts reclassified to net earnings, net of deferred income taxes | 4 | 0 | 7 | 2 | ||
Other comprehensive earnings (losses), net of deferred income taxes | [1] | 28 | 64 | (276) | 99 | |
Balances at end of period | $ (916) | $ (6) | $ (916) | $ (6) | $ (640) | |
[1] | For the six and three months ended June 30, 2015 and 2014, Altria Group, Inc.’s proportionate share of SABMiller’s other comprehensive earnings/losses consisted primarily of currency translation adjustments. |
Other Comprehensive Earnings_37
Other Comprehensive Earnings/Losses (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (loss) before income taxes | $ 2,254 | $ 1,945 | $ 3,816 | $ 3,751 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net Loss | [1] | 74 | 47 | 150 | 96 |
Prior service cost/credit | [1] | (8) | (8) | (16) | (16) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | [1] | 66 | 39 | 134 | 80 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (loss) before income taxes | 71 | 39 | 143 | 83 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | SABMiller Plc [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (loss) before income taxes | [2] | $ 5 | $ 0 | $ 9 | $ 3 |
[1] | Amounts are included in net defined benefit plan costs. For further details, see Note 3. Benefit Plans. | ||||
[2] | Amounts are included in earnings from equity investment in SABMiller. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)cases | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Loss Contingency Accrual, Provision | $ 5 | $ 31 | $ 48 | $ 35 | |
Pre-tax gain on sale of manufacturing facility | (4) | 10 | (4) | 8 | |
Engle Progeny Cases, Federal [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Loss Contingency Accrual, Provision | 0 | 0 | 43 | 0 | |
Engle Progeny Cases, Federal [Member] | Florida Engle [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Federal Engle Cases Resolved | cases | 415 | ||||
Engle Progeny Cases, Federal [Member] | Florida Engle [Member] | PM USA [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Loss Contingency Accrual, Provision | $ 43 | ||||
Corporate Segment [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Loss Contingency Accrual, Provision | 0 | 15 | 0 | 15 | |
Smokeable Products [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Loss Contingency Accrual, Provision | $ 5 | 16 | $ 48 | $ 19 | |
Manufacturing Optimization Plan [Member] | Smokeable Products [Member] | PM USA [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | |||||
Proceeds from Sale of Manufacturing Facility | 66 | ||||
Pre-tax gain on sale of manufacturing facility | $ 10 |
Segment Reporting (Segment Data
Segment Reporting (Segment Data Schedule) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenue, Net | $ 6,613 | $ 6,256 | $ 12,417 | $ 11,773 | |
Operating income | 2,224 | 1,975 | 4,089 | 3,709 | |
Interest and other debt expense, net | (195) | (230) | (404) | (383) | |
Loss on early extinguishment of debt | 0 | $ (228) | 0 | (228) | 0 |
Earnings from equity investment in SABMiller | 225 | 200 | 359 | 425 | |
Earnings (loss) before income taxes | 2,254 | 1,945 | 3,816 | 3,751 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 6,613 | 6,256 | 12,417 | 11,773 | |
Operating Segments [Member] | Smokeable Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 5,974 | 5,611 | 11,195 | 10,569 | |
Operating companies income (loss) | 2,024 | 1,789 | 3,710 | 3,320 | |
Operating Segments [Member] | Smokeless Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 481 | 464 | 911 | 879 | |
Operating companies income (loss) | 293 | 285 | 544 | 524 | |
Operating Segments [Member] | Wine [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | 161 | 146 | 295 | 275 | |
Operating companies income (loss) | 35 | 28 | 62 | 50 | |
Operating Segments [Member] | All Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue, Net | (3) | 35 | 16 | 50 | |
Operating companies income (loss) | (63) | (53) | (104) | (54) | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Amortization of intangibles | (5) | (5) | (10) | (10) | |
General corporate expenses | $ (60) | $ (69) | $ (113) | $ (121) |
Segment Reporting Schedule of N
Segment Reporting Schedule of NPM Adjustment Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 30 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2015 | |
NPM Adjustment [Line Items] | |||||
NPM Adjustment Items | $ 26 | $ 90 | |||
Non-Participating Manufacturer Adjustment Settlement [Member] | NPM Adjustment to Cost Of Sales [Member] | PM USA [Member] | Smokeable Products [Member] | |||||
NPM Adjustment [Line Items] | |||||
NPM Adjustment Items | $ 43 | $ 36 | $ 483 | $ 43 | $ 519 |
Segment Reporting Schedule of P
Segment Reporting Schedule of Pre-tax Tobacco and Health Litigation Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | ||||
Loss Contingency Accrual, Provision | $ 5 | $ 31 | $ 48 | $ 35 |
Smokeable Products [Member] | ||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | ||||
Loss Contingency Accrual, Provision | 5 | 16 | 48 | 19 |
Corporate Segment [Member] | ||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | ||||
Loss Contingency Accrual, Provision | 0 | 15 | 0 | 15 |
Interest Expense [Member] | ||||
Schedule of Pre-tax Tobacco and Health Litigation Items [Line Items] | ||||
Loss Contingency Accrual, Provision | 0 | 0 | 0 | 1 |
Commitments and Contingencies Accrued Interest | $ 0 | $ 0 | $ 0 | $ 1 |
Finance Assets, net (Narrative)
Finance Assets, net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Finance assets, net | $ 1,339 | $ 1,339 | $ 1,614 | ||
Allowance for credit losses | 42 | 42 | $ 42 | 42 | $ 52 |
(Decrease) increase to allowance | 0 | (10) | |||
Decrease to unguaranteed residual values | 35 | 0 | |||
Finance Leases Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Investments in finance leases | 1,381 | $ 1,381 | $ 1,656 | ||
Decrease in Unguaranteed Residual Value Resulting in Reduction to Net Revenues [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Reduction in net revenues | $ 29 | $ 0 |
Finance Assets, net (Schedule o
Finance Assets, net (Schedule of Allowance for Losses on Finance Assets) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 42 | $ 52 |
(Decrease) increase to allowance | 0 | (10) |
Ending balance | $ 42 | $ 42 |
Finance Assets, net (Schedule44
Finance Assets, net (Schedule of Credit Quality of Investments in Finance Leases) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Gross investments in finance leases | $ 1,381 | $ 1,656 |
Finance Leases Financing Receivable [Member] | Standard and Poors AAA to A minus [Member] | Moodys Aaa to A3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross investments in finance leases | 261 | 417 |
Finance Leases Financing Receivable [Member] | Standard and Poors BBB plus to BBB minus [Member] | Moodys Baa1 to Baa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross investments in finance leases | 725 | 833 |
Finance Leases Financing Receivable [Member] | Standard and Poors BB Plus and Lower [Member] | Moodys Ba1 and Lower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross investments in finance leases | $ 395 | $ 406 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Short-term borrowings | $ 0 | $ 0 | $ 0 | |||
Loss on early extinguishment of debt | $ 0 | $ 228,000,000 | $ 0 | $ 228,000,000 | $ 0 | |
Debt Tender Premium and Fees | 226,000,000 | |||||
Write off of Unamortized Debt Discounts and Debt Issuance Costs | $ 2,000,000 | |||||
Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 9.70% | |||||
Notes purchased | $ 793,000,000 |
Debt (Fair Values) (Details)
Debt (Fair Values) (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Billions | Jun. 30, 2015 | Dec. 31, 2014 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate value of Altria's total debt | $ 15.4 | $ 17 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate value of Altria's total debt | $ 13.9 | $ 14.7 |
Contingencies (Schedule Of Pend
Contingencies (Schedule Of Pending Cases) (Details) | Jul. 24, 2015cases | Jul. 18, 2014cases | Jul. 22, 2013cases | |
Pending Litigation [Member] | Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | [1] | 67 | 73 | |
Pending Litigation [Member] | Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | [2] | 5 | 6 | |
Pending Litigation [Member] | Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | [3] | 1 | 1 | |
Pending Litigation [Member] | Lights Ultra Lights Class Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | 14 | 15 | ||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | 2 | |||
Subsequent Event [Member] | Lights Ultra Lights Class Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | 1 | |||
Subsequent Event [Member] | Pending Litigation [Member] | Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | [1] | 65 | ||
Subsequent Event [Member] | Pending Litigation [Member] | Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | [2] | 5 | ||
Subsequent Event [Member] | Pending Litigation [Member] | Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | [3] | 1 | ||
Subsequent Event [Member] | Pending Litigation [Member] | Lights Ultra Lights Class Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Cases Pending | 12 | |||
[1] | Does not include 2,545 cases brought by flight attendants seeking compensatory damages for personal injuries allegedly caused by exposure to environmental tobacco smoke (“ETS”). The flight attendants allege that they are members of an ETS smoking and health class action in Florida, which was settled in 1997 (Broin). The terms of the court-approved settlement in that case allow class members to file individual lawsuits seeking compensatory damages, but prohibit them from seeking punitive damages. Also, does not include individual smoking and health cases brought by or on behalf of plaintiffs in Florida state and federal courts following the decertification of the Engle case (discussed below in Smoking and Health Litigation - Engle Class Action). | |||
[2] | ncludes as one case the 600 civil actions (of which 346 were actions against PM USA) that were to be tried in a single proceeding in West Virginia (In re: Tobacco Litigation). The West Virginia Supreme Court of Appeals has ruled that the United States Constitution did not preclude a trial in two phases in this case. Issues related to defendants’ conduct and whether punitive damages are permissible were tried in the first phase. Trial in the first phase of this case began in April 2013. In May 2013, the jury returned a verdict in favor of defendants on the claims for design defect, negligence, failure to warn, breach of warranty, and concealment and declined to find that the defendants’ conduct warranted punitive damages. Plaintiffs prevailed on their claim that ventilated filter cigarettes should have included use instructions for the period 1964 - 1969. The second phase will consist of trials to determine liability and compensatory damages. In November 2013, plaintiffs filed their notice of appeal to the West Virginia Supreme Court of Appeals. In November 2014, the West Virginia Supreme Court of Appeals affirmed the final judgment and, in January 2015, denied plaintiffs’ petition for rehearing. In April 2015, plaintiffs filed a petition for writ of certiorari with the United States Supreme Court, which the Supreme Court denied on June 8, 2015. | |||
[3] | See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. |
Contingencies (Schedule Of Pe48
Contingencies (Schedule Of Pending Cases) (Footnotedl) (Details) - Subsequent Event [Member] | Jul. 24, 2015cases |
Flight Attendants [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency pending claims, number not included | 2,545 |
West Virginia Consolidated Proceeding [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency pending claims, number included as one case | 600 |
West Virginia Consolidated Proceeding [Member] | PM USA [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency pending claims, number included | 346 |
Contingencies (International To
Contingencies (International Tobacco-Related Cases Narrative) (Details) - Jul. 24, 2015 - Subsequent Event [Member] | cases |
Lights Ultra Lights Class Actions [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 1 |
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | Canada | PM USA And Altria Group, Inc. [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 7 |
Health Care Cost Recovery Actions [Member] | Canada | Health Care Cost Recovery Actions [Member] | PM USA [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 10 |
Health Care Cost Recovery Actions [Member] | Canada | Health Care Cost Recovery Actions [Member] | PM USA And Altria Group, Inc. [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 8 |
Contingencies (Pending And Upco
Contingencies (Pending And Upcoming Tobacco-Related Trials Narrative) (Details) - Subsequent Event [Member] | Jul. 24, 2015 |
Individual Smoking And Health Cases [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 2 |
Lights Ultra Lights Class Actions [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 1 |
Engle Progeny Cases [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 16 |
Contingencies (Trial Results Na
Contingencies (Trial Results Narrative) (Details) - Jul. 24, 2015 - Subsequent Event [Member] $ in Millions | USD ($) | cases | cases |
Health Care Cost Recovery [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation, Verdict Reversed | 1 | ||
Non Engle Progeny Cases [Member] | Since January1999 [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Claims Decided | 56 | ||
Loss Contingency, Claims Decided Unfavorable, Number | 18 | ||
Loss Contingency, Claims Resolved | 15 | ||
Loss Contingency, Claims Decided Favorable, Number | 38 | ||
Engle and Non-Engle Cases [Member] | Since October 2004 [Member] | |||
Loss Contingencies [Line Items] | |||
Judgment Interest Paid Aggregate | $ | $ 144 | ||
Loss Contingency, Damages Paid, Value | $ | 276 | ||
Engle Progeny Cases [Member] | Since October 2004 [Member] | |||
Loss Contingencies [Line Items] | |||
Judgment Interest Paid Aggregate | $ | 3 | ||
Loss Contingency, Damages Paid, Value | $ | $ 19 | ||
Engle Progeny Cases [Member] | Since July 2006 [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation, Verdict Reversed | 2 | ||
Loss Contingency, Claims Decided | 81 | ||
Loss Contingency, Claims Decided Unfavorable, Number | 43 | ||
Loss Contingency, Claims Decided Favorable, Number | 36 |
Contingencies Contingencies (Ju
Contingencies Contingencies (Judgments Recorded and Paid) (Details) - Litigation Case [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Loss Contingencies Judgments Recorded and Paid [Line Items] | |||||
Accrued liability for tobacco and health litigation items at beginning of period | $ 77 | $ 39 | $ 7 | $ 39 | $ 3 |
Loss Contingency Accrual, Provision | 5 | 31 | 48 | 35 | |
Payments for tobacco and health litigation items | (5) | (4) | (10) | (4) | |
Accrued liability for tobacco and health litigation items at end of period | 77 | $ 77 | 34 | 77 | 34 |
Tobacco and Health Judgment [Member] | |||||
Loss Contingencies Judgments Recorded and Paid [Line Items] | |||||
Loss Contingency Accrual, Provision | 5 | 0 | 5 | 3 | |
Engle Progeny Cases, Federal [Member] | |||||
Loss Contingencies Judgments Recorded and Paid [Line Items] | |||||
Loss Contingency Accrual, Provision | 0 | 0 | 43 | 0 | |
Interest Expense [Member] | |||||
Loss Contingencies Judgments Recorded and Paid [Line Items] | |||||
Loss Contingency Accrual, Provision | 0 | 0 | 0 | 1 | |
Federal Governments Lawsuit [Member] | Health Care Cost Recovery Litigation [Member] | |||||
Loss Contingencies Judgments Recorded and Paid [Line Items] | |||||
Loss Contingency Accrual, Provision | $ 0 | $ 31 | $ 0 | $ 31 |
Contingencies (Security For Jud
Contingencies (Security For Judgments Narrative) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |
Security posted for appeal of judgments | $ 64 |
Contingencies (Non-Engle Progen
Contingencies (Non-Engle Progeny Cases Trial Results Narrative) (Details) - Loss Contingency, Nature [Domain] - Entity [Domain] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Loss Contingencies [Line Items] | ||||
Judgment plus interest and associated costs paid | $ 5,000,000 | $ 4,000,000 | $ 10,000,000 | $ 4,000,000 |
Oregon Schwarz [Member] | Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, period of occurrence | March 2,002 | |||
Compensatory damages jury award total excluding interest | 168,500 | $ 168,500 | ||
Loss contingency, court reduction date | May 2,002 | |||
Punitive damages reduced award total | 100,000,000 | $ 100,000,000 | ||
Date of Court Award of Costs to Defendant | December 2,010 | |||
Court Ordered Costs Returned To Defendant | $ 500,000 | |||
Punitive Damages Award Date | ||||
Punitive damages jury award allocation amount | 150,000,000 | $ 150,000,000 | ||
Retrial Punitive Damages Awarded | $ 25,000,000 | $ 25,000,000 |
Contingencies (Engle Class Acti
Contingencies (Engle Class Action And Engle Progeny Trial Results Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 109 Months Ended | ||||
May. 31, 2001USD ($) | Jun. 30, 2015USD ($)cases | Mar. 31, 2015USD ($)cases | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)cases | Jun. 30, 2014USD ($) | Jul. 24, 2015cases | Jul. 31, 2006USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Judgment plus interest and associated costs paid | $ 5,000,000 | $ 4,000,000 | $ 10,000,000 | $ 4,000,000 | ||||
Loss Contingency Accrual, Provision | 5,000,000 | 31,000,000 | 48,000,000 | 35,000,000 | ||||
Engle Progeny Cases, Federal [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency Accrual, Provision | 0 | $ 0 | 43,000,000 | $ 0 | ||||
Florida Engle [Member] | Engle Progeny Cases, Federal [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amounts placed in escrow | $ 43,000,000 | |||||||
Federal Engle Cases Resolved | cases | 415 | |||||||
Florida Engle [Member] | Engle Progeny Cases, Federal [Member] | PM USA [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency Accrual, Provision | $ 43,000,000 | |||||||
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | Florida Engle [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amounts placed in escrow | $ 500,000,000 | |||||||
Reinstated compensatory damages, award total | $ 6,900,000 | |||||||
Judgment plus interest and associated costs paid | $ 3,000,000 | |||||||
Loss Contingency, Damages Paid Date | February 2,008 | |||||||
Florida bond cap | $ 200,000,000 | $ 200,000,000 | ||||||
Engle Progeny Cases [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of Cases Appealed | cases | 750 | 750 | ||||||
Engle Progeny Cases [Member] | Florida/Harris [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Compensatory damages jury award total excluding interest | $ 1,730,000 | $ 1,730,000 | ||||||
Loss contingency, period of occurrence | July 2,014 | |||||||
Engle Progeny Cases [Member] | Florida/Reider [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Compensatory damages jury award total excluding interest | 0 | $ 0 | ||||||
Engle Progeny Cases [Member] | Florida/Banks [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Compensatory damages jury award total excluding interest | 0 | 0 | ||||||
Engle Progeny Cases [Member] | Florida Weingart [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Compensatory damages jury award total excluding interest | 0 | 0 | ||||||
Engle Progeny Cases [Member] | Florida Hancock [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Compensatory damages jury award total excluding interest | 0 | $ 0 | ||||||
Loss contingency, period of occurrence | August 2,012 | |||||||
Florida Engle [Member] | Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, period of occurrence | July 2,000 | |||||||
Punitive damages jury award total all defendants | 145,000,000,000 | $ 145,000,000,000 | ||||||
Punitive damages jury award allocation amount PM USA | $ 74,000,000,000 | $ 74,000,000,000 | ||||||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of plaintiffs | cases | 4,100 | |||||||
Loss contingency, pending claims | cases | 3,125 | |||||||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | Since July 2006 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Decided Favorable, Number | cases | 27 | |||||||
Subsequent Event [Member] | Engle Progeny Cases, Federal [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Active Cases Pending In Federal Court | cases | 425 | |||||||
Subsequent Event [Member] | Engle Progeny Cases, Federal [Member] | Since July 2006 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Decided Favorable, Number | cases | 9 | |||||||
Subsequent Event [Member] | Engle Progeny Cases [Member] | Since July 2006 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Decided Favorable, Number | cases | 36 |
Contingencies (Engle Progeny Ca
Contingencies (Engle Progeny Cases Trial Results Narrative) (Details) - Loss Contingency, Nature [Domain] - USD ($) | Jul. 23, 2015 | Jul. 17, 2015 | Jun. 30, 2015 | Oct. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 |
Loss Contingencies [Line Items] | ||||||||||
Judgment plus interest and associated costs paid | $ 5,000,000 | $ 4,000,000 | $ 10,000,000 | $ 4,000,000 | ||||||
Engle Progeny Cases [Member] | Florida/M.Brown [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | May 2,015 | |||||||||
Compensatory damages jury award total excluding interest | $ 6,375,000 | 6,375,000 | $ 6,375,000 | |||||||
Appeal bond posted by PM USA | $ 5,000,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Gore [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | March 2,015 | |||||||||
Compensatory damages jury award total excluding interest | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 23.00% | 23.00% | 23.00% | |||||||
Compensatory damages jury award allocation amount | $ 460,000 | $ 460,000 | $ 460,000 | |||||||
Engle Progeny Cases [Member] | Florida/Pollari [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | March 2,015 | |||||||||
Compensatory damages jury award total excluding interest | 10,000,000 | 10,000,000 | $ 10,000,000 | |||||||
Punitive damages jury award total all defendants | 1,500,000 | 1,500,000 | $ 1,500,000 | |||||||
Engle Progeny Cases [Member] | Florida/Zamboni [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | February 2,015 | |||||||||
Compensatory damages jury award total excluding interest | $ 340,000 | $ 340,000 | $ 340,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 10.00% | 10.00% | 10.00% | |||||||
Compensatory damages jury award allocation amount | $ 34,000 | $ 34,000 | $ 34,000 | |||||||
Engle Progeny Cases [Member] | Florida/Caprio [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | February 2,015 | |||||||||
Economic damages | $ 559,172 | $ 559,172 | $ 559,172 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 25.00% | 25.00% | 25.00% | |||||||
Engle Progeny Cases [Member] | Florida/McKeever [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | February 2,015 | |||||||||
Compensatory damages jury award total excluding interest | $ 5,800,000 | $ 5,800,000 | $ 5,800,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 60.00% | 60.00% | 60.00% | |||||||
Punitive damages jury award total all defendants | $ 11,630,000 | $ 11,630,000 | $ 11,630,000 | |||||||
Compensatory and Punitive Damages Jury Award Total | 17,400,000 | 17,400,000 | 17,400,000 | |||||||
Appeal bond posted by PM USA | $ 5,000,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Landau [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | February 2,015 | |||||||||
Compensatory damages jury award total excluding interest | 100,000 | 100,000 | $ 100,000 | |||||||
Engle Progeny Cases [Member] | Florida/D.Brown [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | January 2,015 | |||||||||
Compensatory damages jury award total excluding interest | 8,300,000 | 8,300,000 | $ 8,300,000 | |||||||
Punitive damages jury award total all defendants | 9,000,000 | 9,000,000 | $ 9,000,000 | |||||||
Engle Progeny Cases [Member] | Florida Allen [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | November 2,014 | |||||||||
Compensatory damages jury award total excluding interest | 6,000,000 | 6,000,000 | $ 6,000,000 | |||||||
Compensatory damages reduced amended award total | $ 3,100,000 | $ 3,100,000 | $ 3,100,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 6.00% | 6.00% | 6.00% | |||||||
Punitive damages reduced award total | $ 7,760,000 | $ 7,760,000 | $ 7,760,000 | |||||||
Punitive damages jury award total against each defendant | 17,000,000 | 17,000,000 | $ 17,000,000 | |||||||
Engle Progeny Cases [Member] | Florida/Perrotto [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | November 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 4,100,000 | $ 4,100,000 | $ 4,100,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 25.00% | 25.00% | 25.00% | |||||||
Compensatory damages jury award allocation amount | $ 1,020,000 | $ 1,020,000 | $ 1,020,000 | |||||||
Engle Progeny Cases [Member] | Florida/Boatright [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | November 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 85.00% | 85.00% | 85.00% | |||||||
Compensatory damages jury award allocation amount | $ 12,750,000 | $ 12,750,000 | $ 12,750,000 | |||||||
Punitive damages jury award allocation amount | 19,700,000 | 19,700,000 | 19,700,000 | |||||||
Appeal bond posted by PM USA | $ 3,980,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Kerrivan [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | October 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 15,800,000 | $ 15,800,000 | $ 15,800,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 50.00% | 50.00% | 50.00% | |||||||
Punitive damages jury award total all defendants | $ 25,300,000 | $ 25,300,000 | $ 25,300,000 | |||||||
Punitive damages jury award allocation amount | 15,700,000 | 15,700,000 | $ 15,700,000 | |||||||
Engle Progeny Cases [Member] | Florida/Lourie [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | October 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 1,370,000 | $ 1,370,000 | $ 1,370,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 27.00% | 27.00% | 27.00% | |||||||
Compensatory damages jury award allocation amount | $ 370,000 | $ 370,000 | $ 370,000 | |||||||
Appeal bond posted by PM USA | $ 370,318 | |||||||||
Engle Progeny Cases [Member] | Florida/Berger [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | September 2,014 | |||||||||
Compensatory damages jury award total excluding interest | 6,250,000 | 6,250,000 | $ 6,250,000 | |||||||
Punitive damages jury award total all defendants | 20,760,000 | 20,760,000 | $ 20,760,000 | |||||||
Engle Progeny Cases [Member] | Florida/Harris [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | July 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 1,730,000 | $ 1,730,000 | $ 1,730,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 15.00% | 15.00% | 15.00% | |||||||
Engle Progeny Cases [Member] | Florida/Griffin [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | June 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 1,270,000 | $ 1,270,000 | $ 1,270,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 50.00% | 50.00% | 50.00% | |||||||
Compensatory damages jury award allocation amount | $ 630,000 | $ 630,000 | $ 630,000 | |||||||
Appeal bond posted by PM USA | $ 640,543 | |||||||||
Engle Progeny Cases [Member] | Florida/Burkhart [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | May 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 15.00% | 15.00% | 15.00% | |||||||
Punitive damages jury award total all defendants | $ 2,500,000 | $ 2,500,000 | $ 2,500,000 | |||||||
Punitive damages jury award allocation amount | 750,000 | 750,000 | $ 750,000 | |||||||
Engle Progeny Cases [Member] | Florida/Bowden [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | March 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 30.00% | 30.00% | 30.00% | |||||||
Compensatory damages jury award allocation amount | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||||||
Appeal bond posted by PM USA | $ 1,500,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Goveia [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | February 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 850,000 | $ 850,000 | $ 850,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 35.00% | 35.00% | 35.00% | |||||||
Compensatory damages jury award allocation amount | $ 297,500 | $ 297,500 | $ 297,500 | |||||||
Punitive damages jury award total all defendants | 2,250,000 | 2,250,000 | 2,250,000 | |||||||
Appeal bond posted by PM USA | $ 2,500,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Cuculino [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | January 2,014 | |||||||||
Compensatory damages jury award total excluding interest | $ 12,500,000 | $ 12,500,000 | $ 12,500,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 40.00% | 40.00% | 40.00% | |||||||
Judgment plus interest and associated costs paid | $ 5,300,000 | |||||||||
Compensatory damages jury award allocation amount | 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||||
Appeal bond posted by PM USA | $ 5,000,000 | |||||||||
Loss Contingency Damages Recorded Costs And Interest | 5,300,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Rizzuto [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | August 2,013 | |||||||||
Compensatory damages jury award total excluding interest | 12,550,000 | 12,550,000 | $ 12,550,000 | |||||||
Economic damages | 2,550,000 | 2,550,000 | 2,550,000 | |||||||
Economic Damages Reduced Award Total | 1,100,000 | 1,100,000 | 1,100,000 | |||||||
Compensatory damages reduced award total | 11,100,000 | 11,100,000 | $ 11,100,000 | |||||||
Engle Progeny Cases [Member] | Florida/Skolnick [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | June 2,013 | |||||||||
Compensatory damages jury award total excluding interest | $ 2,555,000 | $ 2,555,000 | $ 2,555,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 30.00% | 30.00% | 30.00% | |||||||
Compensatory damages jury award allocation amount | $ 766,500 | $ 766,500 | $ 766,500 | |||||||
Appeal bond posted by PM USA | $ 766,500 | |||||||||
Engle Progeny Cases [Member] | Florida/Starr-Blundell [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | June 2,013 | |||||||||
Compensatory damages jury award total excluding interest | $ 500,000 | $ 500,000 | $ 500,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 10.00% | 10.00% | 10.00% | |||||||
Compensatory damages jury award allocation amount | $ 50,000 | $ 50,000 | $ 50,000 | |||||||
Engle Progeny Cases [Member] | Florida/Ruffo [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | May 2,013 | |||||||||
Compensatory damages jury award total excluding interest | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 12.00% | 12.00% | 12.00% | |||||||
Judgment plus interest and associated costs paid | $ 200,212 | |||||||||
Compensatory damages jury award allocation amount | $ 180,000 | 180,000 | $ 180,000 | |||||||
Appeal bond posted by PM USA | $ 180,000 | |||||||||
Loss Contingency Damages Recorded Costs And Interest | 193,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Graham [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | May 2,013 | |||||||||
Compensatory damages jury award total excluding interest | $ 2,750,000 | $ 2,750,000 | $ 2,750,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 10.00% | 10.00% | 10.00% | |||||||
Compensatory damages jury award allocation amount | $ 275,000 | $ 275,000 | $ 275,000 | |||||||
Appeal bond posted by PM USA | $ 277,750 | |||||||||
Engle Progeny Cases [Member] | Florida/Searcy [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | April 2,013 | |||||||||
Compensatory damages jury award total excluding interest | 6,000,000 | 6,000,000 | $ 6,000,000 | |||||||
Compensatory damages reduced award total | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 30.00% | 30.00% | 30.00% | |||||||
Punitive damages reduced award total | $ 1,670,000 | $ 1,670,000 | $ 1,670,000 | |||||||
Punitive damages jury award total against each defendant | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Appeal bond posted by PM USA | $ 2,200,000 | |||||||||
Engle Progeny Cases [Member] | Florida Buchanan [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | December 2,012 | |||||||||
Compensatory damages jury award total excluding interest | $ 5,500,000 | $ 5,500,000 | $ 5,500,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 37.00% | 37.00% | 37.00% | |||||||
Compensatory damages jury award allocation amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Appeal bond posted by PM USA | $ 2,500,000 | |||||||||
Engle Progeny Cases [Member] | Florida Hancock [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | August 2,012 | |||||||||
Compensatory damages jury award total excluding interest | 0 | 0 | $ 0 | |||||||
Additur damages imposed by trial court | $ 110,000 | $ 110,000 | $ 110,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 5.00% | 5.00% | 5.00% | |||||||
Loss contingency, damages allocated | $ 700 | |||||||||
Engle Progeny Cases [Member] | Florida Calloway [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | May 2,012 | |||||||||
Compensatory damages jury award total excluding interest | $ 21,000,000 | $ 21,000,000 | $ 21,000,000 | |||||||
Compensatory damages reduced award total | $ 16,100,000 | $ 16,100,000 | $ 16,100,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 25.00% | 25.00% | 25.00% | |||||||
Punitive damages jury award allocation amount | $ 17,000,000 | $ 17,000,000 | $ 17,000,000 | |||||||
Appeal bond posted by PM USA | $ 1,500,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Hallgren [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | January 2,012 | |||||||||
Compensatory damages jury award total excluding interest | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 25.00% | 25.00% | 25.00% | |||||||
Compensatory damages jury award allocation amount | $ 500,000 | $ 500,000 | $ 500,000 | |||||||
Punitive damages jury award total against each defendant | 750,000 | 750,000 | 750,000 | |||||||
Appeal bond posted by PM USA | $ 1,250,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Tullo [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | April 2,011 | |||||||||
Compensatory damages jury award total excluding interest | $ 4,500,000 | $ 4,500,000 | $ 4,500,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 45.00% | 45.00% | 45.00% | |||||||
Compensatory damages jury award allocation amount | $ 2,025,000 | $ 2,025,000 | $ 2,025,000 | |||||||
Appeal bond posted by PM USA | $ 2,000,000 | |||||||||
Loss Contingency Damages Recorded Costs And Interest | $ 3,900,000 | |||||||||
Loss Contingency, Damages Paid | $ 3,900,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Kayton (Formerly Tate) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | July 2,010 | |||||||||
Compensatory damages jury award total excluding interest | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 64.00% | 64.00% | 64.00% | |||||||
Compensatory damages jury award allocation amount | $ 5,100,000 | $ 5,100,000 | $ 5,100,000 | |||||||
Punitive damages jury award allocation amount | 16,200,000 | 16,200,000 | 16,200,000 | |||||||
Appeal bond posted by PM USA | $ 5,000,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Putney [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | April 2,010 | |||||||||
Compensatory damages jury award total excluding interest | $ 15,100,000 | $ 15,100,000 | $ 15,100,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 15.00% | 15.00% | 15.00% | |||||||
Compensatory damages jury award allocation amount | $ 2,300,000 | $ 2,300,000 | $ 2,300,000 | |||||||
Punitive damages jury award allocation amount | 2,500,000 | 2,500,000 | 2,500,000 | |||||||
Appeal bond posted by PM USA | $ 1,600,000 | |||||||||
Engle Progeny Cases [Member] | Florida/R. Cohen [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | March 2,010 | |||||||||
Compensatory damages jury award total excluding interest | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 33.30% | 33.30% | 33.30% | |||||||
Compensatory damages jury award allocation amount | $ 3,300,000 | $ 3,300,000 | $ 3,300,000 | |||||||
Punitive damages jury award total all defendants | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Punitive damages jury award total against each defendant | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Appeal bond posted by PM USA | $ 2,500,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Naugle [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | November 2,009 | |||||||||
Compensatory damages jury award total excluding interest | 56,600,000 | 56,600,000 | $ 56,600,000 | |||||||
Compensatory damages reduced award total | 13,000,000 | 13,000,000 | 13,000,000 | |||||||
Compensatory damages reduced amended award total | $ 12,300,000 | $ 12,300,000 | $ 12,300,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 90.00% | 90.00% | 90.00% | |||||||
Punitive damages jury award total all defendants | $ 244,000,000 | $ 244,000,000 | $ 244,000,000 | |||||||
Punitive damages reduced award total | 26,000,000 | 26,000,000 | 26,000,000 | |||||||
Punitive damages reduced amended award total | 24,500,000 | 24,500,000 | 24,500,000 | |||||||
Retrial Compensatory Damages Awarded | 3,700,000 | 3,700,000 | 3,700,000 | |||||||
Retrial Punitive Damages Awarded | 7,500,000 | 7,500,000 | 7,500,000 | |||||||
Appeal bond posted by PM USA | $ 5,000,000 | |||||||||
Engle Progeny Cases [Member] | Florida/Hess [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | February 2,009 | |||||||||
Compensatory damages jury award total excluding interest | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | |||||||
Compensatory damages jury award allocation percentage allocated to PM USA | 42.00% | 42.00% | 42.00% | |||||||
Compensatory damages jury award allocation amount | $ 1,260,000 | $ 1,260,000 | $ 1,260,000 | |||||||
Punitive damages jury award allocation amount | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||||
Loss Contingency Damages Recorded Costs And Interest | $ 3,200,000 | |||||||||
Subsequent Event [Member] | Engle Progeny Cases [Member] | Florida/Merino [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | July 2,015 | |||||||||
Compensatory damages jury award total excluding interest | $ 8,000,000 | |||||||||
Punitive damages jury award total all defendants | $ 6,500,000 | |||||||||
Subsequent Event [Member] | Engle Progeny Cases [Member] | Florida/McCoy [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, period of occurrence | July 2,015 | |||||||||
Compensatory damages jury award total excluding interest | $ 1,500,000 | |||||||||
Punitive damages jury award allocation amount | $ 3,000,000 |
Contingencies (Medical Monitori
Contingencies (Medical Monitoring Class Actions Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Medical Monitoring Class Actions [Member] | Donovan [Member] | Medical Monitoring Class Actions [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 190 |
Contingencies (Health Care Cost
Contingencies (Health Care Cost Recovery Litigation Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
State Settlements Agreements [Member] | Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, period of occurrence | November 1,998 | |||
State Settlement Agreements annual payments | $ 9,400 | |||
State Settlement Agreements attorney fees annual cap | 500 | |||
Aggregate Amount Recorded In Cost Of Sales Related To State Settlement Agreements And Federal Equitable Tobacco Reform Act | $ 1,200 | $ 1,200 | $ 2,300 | $ 2,300 |
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of Smoking and Health Class Certifications Denied or Reversed | 59 | 59 |
Contingencies (NPM Adjustment C
Contingencies (NPM Adjustment Calculation Narrative) (Details) - Jun. 30, 2015 - Segments [Domain] - Loss Contingency, Nature [Domain] - Entity [Domain] $ in Millions | USD ($)state |
Loss Contingencies [Line Items] | |
Partial Liability Reduction Percentage for 2003 N P M Adjustment for States that Are Party to Agreement re: Arbitration | 20.00% |
Challenges To MSA Found In Favor Of Defendants | 16 |
States Not Diligently Enforcing Escrow Statutes | state | 6 |
Year NPM Adjustment Calculated 2013 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | $ 219 |
Year NPM Adjustment Calculated 2012 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 211 |
Year Npm Adjustment Calculated 2011 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 166 |
Year Npm Adjustment Calculated 2010 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 218 |
Year NPM Adjustment Calculated 2009 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 211 |
Year Npm Adjustment Calculated 2008 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 250 |
Year Npm Adjustment Calculated 2007 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 185 |
Year Npm Adjustment Calculated 2006 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 154 |
Year Npm Adjustment Calculated 2005 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 181 |
Year Npm Adjustment Calculated 2004 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | 388 |
Year NPM Adjustment Calculated 2014 [Member] | |
Loss Contingencies [Line Items] | |
Affiliates Possible Excess MSA Payments | $ 247 |
2004-214 NPM Adjustment [Member] | |
Loss Contingencies [Line Items] | |
Non-signatory States | state | 17 |
Contingencies Contingencies (MS
Contingencies Contingencies (MSA Term Sheet Agreement) (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 30 Months Ended | ||||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Jun. 30, 2015USD ($)state | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)state | |
Loss Contingencies [Line Items] | |||||||||
Number of States Joining Term Sheet | state | 24 | ||||||||
Number of States Not Joining Settlement | state | 15 | ||||||||
States Not Diligently Enforcing Escrow Statutes | state | 6 | ||||||||
States Diligently Enforcing Escrow Statute | state | 9 | ||||||||
NPM Adjustment Items | $ 26 | $ 90 | |||||||
Earnings before income taxes | $ 2,254 | 1,945 | $ 3,816 | 3,751 | |||||
Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Projected Litigation Settlement Interest | (89) | ||||||||
Litigation Settlement Interest | (17) | $ 64 | 47 | ||||||
Projected Litigation Settlement Interest Not recorded | (25) | ||||||||
NPM Adjustment to Cost Of Sales [Member] | 2003 NPM Adjustment Amount [Member] | Non-Participating Manufacturer Adjustment Settlement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
NPM Adjustment Items | $ 599 | ||||||||
NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Projected Litigation Settlement, Amount | $ 145 | ||||||||
Appeals Bond Posted By Affiliate | 22 | ||||||||
NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Adjustment Settlement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
NPM Adjustment Items | 43 | $ 36 | $ 483 | 43 | 519 | ||||
NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | PM USA [Member] | 2013 Transition Year Adjustment [Member] | Non-Participating Manufacturer Adjustment Settlement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
NPM Adjustment Items | $ 35 | ||||||||
NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | PM USA [Member] | 2014 Transition Year Adjustment [Member] | Non-Participating Manufacturer Adjustment Settlement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
NPM Adjustment Items | 41 | ||||||||
Indiana/Kentucky [Member] | Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Projected Litigation Settlement, Amount | 26 | ||||||||
NPM Adjustment Items | 54 | ||||||||
Litigation Settlement Interest | (17) | $ 17 | |||||||
Earnings before income taxes | 26 | ||||||||
Indiana/Kentucky [Member] | NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Adjustment Settlement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of States Joining Term Sheet | state | 2 | ||||||||
NPM Adjustment Items | $ 43 | 37 | $ 80 | ||||||
Indiana/Kentucky [Member] | NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | PM USA [Member] | 2013 Transition Year Adjustment [Member] | Non-Participating Manufacturer Adjustment Settlement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
NPM Adjustment Items | 3 | ||||||||
Missouri [Member] | Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation Settlement Amount Possible Refund to States | 12 | ||||||||
Projected Litigation Settlement Interest Possible Refund to State | 7 | ||||||||
Remaining non-diligent states [Member] | Smokeable Products [Member] | PM USA [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Projected Litigation Settlement, Amount | 108 | ||||||||
NPM Adjustment Items | 79 | ||||||||
Litigation settlement, amount Recovery available if Successful on Appeal | 29 | ||||||||
Projected Litigation Settlement Interest | (66) | ||||||||
Litigation Settlement Interest | $ 47 | ||||||||
Projected litigation settlement Interest Reduced Amount | (48) | ||||||||
Litigation settlement interest Recovery Available if Successful On Appeal | $ (18) | ||||||||
Remaining non-diligent states [Member] | Smokeable Products [Member] | PM USA [Member] | 2003 NPM Adjustment Amount [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
States Not Diligently Enforcing Escrow Statutes | state | 4 |
Contingencies (Federal Governme
Contingencies (Federal Government's Lawsuit Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual, Provision | $ 5 | $ 31 | $ 48 | $ 35 |
Federal Governments Lawsuit [Member] | Health Care Cost Recovery Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Federal Government Original Complaint Date | 1,999 | |||
Loss contingency, period of occurrence | August 2,006 | |||
Loss Contingency Accrual, Provision | $ 0 | $ 31 | $ 0 | $ 31 |
Amount of alleged annual costs health care programs, minimum | 20,000 | |||
Amount of disgorgement of profits requested in Federal Government lawsuit | $ 280,000 | |||
Document Repository Agreement date | December 2,011 | |||
Loss contingency, amount of district court deposit | $ 3.1 | |||
Loss contingency installment period, years | 5 |
Contingencies (Other Matters Na
Contingencies (Other Matters Narrative) (Details) - Entity [Domain] $ in Millions | 3 Months Ended | 6 Months Ended | 80 Months Ended | |
Jun. 30, 2014USD ($) | Jun. 30, 2015 | Jun. 30, 2014USD ($) | Jul. 24, 2015 | |
Loss Contingencies [Line Items] | ||||
Litigation settlement, amount | $ 26 | $ 90 | ||
Lights Multi District Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Additional class action certifications denied, reversed, dismissed or resolved | 4 | |||
Lights [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cases Voluntarily Dismissed | 13 | |||
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lights Ultra Lights Class Certification Cases Pending in United States | 12 | |||
Subsequent Event [Member] | Lights [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purported number of class action lawsuits served | 26 | |||
Additional Class Action Certifications Denied Reversed Dismissed Or Resolved | 19 |
Contingencies Contingencies (St
Contingencies Contingencies (State Class Certifications) (Details) - Loss Contingency, Nature [Domain] - Litigation Status [Domain] - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Loss Contingencies [Line Items] | |||
Litigation settlement, amount | $ 26,000,000 | $ 90,000,000 | |
Brown Case [Member] | Lights [Member] | |||
Loss Contingencies [Line Items] | |||
Court Ordered Costs Returned To Defendant | $ 764,553 | ||
Maximum [Member] | Aspinall [Member] | Lights Ultra Lights Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 25 |
Contingencies (Other Litigation
Contingencies (Other Litigation Matters Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Loss Contingencies [Line Items] | ||||
Litigation settlement, amount | $ 26 | $ 90 | ||
Lights Ultra Lights Class Actions [Member] | Illinois Price [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, period of occurrence | March 2,003 | |||
Loss Contingency, Date of Dismissal | Dec. 31, 2006 | |||
Lights Ultra Lights Class Actions [Member] | Lights Ultra Lights Class Actions [Member] | Illinois Price [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Compensatory Damages | $ 7,100 | |||
Loss Contingency, Damages Awarded, Punitive Damages | $ 3,000 | |||
Aggregate Award Reinstated | $ 10,100 |
Contingencies (Certain Other Ac
Contingencies (Certain Other Actions Narrative) (Details) - Entity [Domain] $ in Millions | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | ||
Contingent liability related to performance surety bonds | $ 32 | |
Redeemable noncontrolling interest | $ 36 | $ 35 |
Argentine Growers Case [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 6 | |
Number of Cases Stayed | 5 | |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 64 | |
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Loss Contingencies [Line Items] | ||
Credit line available under the agreement | $ 3,000 |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Assets [Abstract] | ||||||
Cash and cash equivalents | $ 1,123 | $ 3,321 | $ 1,193 | $ 3,175 | ||
Receivables | 142 | 124 | ||||
Inventories: | ||||||
Leaf tobacco | 865 | 991 | ||||
Other raw materials | 201 | 200 | ||||
Work in process | 367 | 429 | ||||
Finished product | 481 | 420 | ||||
Inventory, net | 1,914 | 2,040 | ||||
Due from Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Deferred income taxes | 1,143 | 1,143 | ||||
Other current assets | 311 | 250 | ||||
Total current assets | 4,633 | 6,878 | ||||
Property, plant and equipment, at cost | 4,805 | 4,755 | ||||
Less accumulated depreciation | 2,814 | 2,772 | ||||
Property, plant and equipment, net | 1,991 | 1,983 | ||||
Goodwill | 5,285 | 5,285 | ||||
Other intangible assets, net | 12,039 | 12,049 | ||||
Investment in SABMiller | 6,117 | 6,183 | ||||
Investment in consolidated subsidiaries | 0 | 0 | ||||
Finance assets, net | 1,339 | 1,614 | ||||
Due from Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Other assets | 465 | 483 | ||||
TOTAL ASSETS | 31,869 | 34,475 | ||||
Liabilities [Abstract] | ||||||
Current portion of long-term debt | 1,003 | 1,000 | ||||
Accounts payable | 290 | 416 | ||||
Accrued liabilities: | ||||||
Marketing | 674 | 618 | ||||
Employment costs | 104 | 186 | ||||
Settlement charges | 2,206 | 3,500 | ||||
Other | 961 | 925 | ||||
Dividends payable | 1,023 | 1,028 | ||||
Due to Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Total current liabilities | 6,261 | 7,673 | ||||
Long-term debt | 12,917 | 13,693 | ||||
Deferred income taxes | 6,011 | 6,088 | ||||
Accrued pension costs | 945 | 1,012 | ||||
Accrued postretirement health care costs | 2,451 | 2,461 | ||||
Due to Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Other liabilities | 475 | 503 | ||||
Total liabilities | $ 29,060 | $ 31,430 | ||||
Contingencies | ||||||
Redeemable noncontrolling interest | $ 36 | $ 35 | ||||
Stockholders' Equity | ||||||
Common stock | 935 | 935 | ||||
Additional paid-in capital | 5,768 | 5,735 | ||||
Earnings reinvested in the business | 26,698 | 26,277 | ||||
Accumulated other comprehensive losses | (2,878) | $ (2,945) | (2,682) | (1,229) | $ (1,318) | (1,378) |
Cost of repurchased stock | (27,744) | (27,251) | ||||
Total stockholders' equity attributable to Altria Group, Inc. | 2,779 | 3,014 | ||||
Noncontrolling interests | (6) | (4) | ||||
Total stockholders' equity | 2,773 | 3,010 | 4,118 | |||
Total Liabilities and Stockholders' Equity | 31,869 | 34,475 | ||||
Reportable Legal Entities [Member] | Altria Group, Inc. [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 1,077 | 3,281 | 1,146 | 3,114 | ||
Receivables | 0 | 0 | ||||
Inventories: | ||||||
Leaf tobacco | 0 | 0 | ||||
Other raw materials | 0 | 0 | ||||
Work in process | 0 | 0 | ||||
Finished product | 0 | 0 | ||||
Inventory, net | 0 | 0 | ||||
Due from Altria Group, Inc. and subsidiaries | 0 | 568 | ||||
Deferred income taxes | 1 | 0 | ||||
Other current assets | 179 | 54 | ||||
Total current assets | 1,257 | 3,903 | ||||
Property, plant and equipment, at cost | 0 | 0 | ||||
Less accumulated depreciation | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investment in SABMiller | 6,117 | 6,183 | ||||
Investment in consolidated subsidiaries | 11,404 | 10,665 | ||||
Finance assets, net | 0 | 0 | ||||
Due from Altria Group, Inc. and subsidiaries | 4,790 | 4,790 | ||||
Other assets | 141 | 148 | ||||
TOTAL ASSETS | 23,709 | 25,689 | ||||
Liabilities [Abstract] | ||||||
Current portion of long-term debt | 1,000 | 1,000 | ||||
Accounts payable | 19 | 18 | ||||
Accrued liabilities: | ||||||
Marketing | 0 | 0 | ||||
Employment costs | 14 | 18 | ||||
Settlement charges | 0 | 0 | ||||
Other | 322 | 321 | ||||
Dividends payable | 1,023 | 1,028 | ||||
Due to Altria Group, Inc. and subsidiaries | 3,503 | 4,414 | ||||
Total current liabilities | 5,881 | 6,799 | ||||
Long-term debt | 12,901 | 13,693 | ||||
Deferred income taxes | 1,732 | 1,754 | ||||
Accrued pension costs | 231 | 233 | ||||
Accrued postretirement health care costs | 0 | 0 | ||||
Due to Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Other liabilities | 185 | 196 | ||||
Total liabilities | $ 20,930 | $ 22,675 | ||||
Contingencies | ||||||
Redeemable noncontrolling interest | $ 0 | $ 0 | ||||
Stockholders' Equity | ||||||
Common stock | 935 | 935 | ||||
Additional paid-in capital | 5,768 | 5,735 | ||||
Earnings reinvested in the business | 26,698 | 26,277 | ||||
Accumulated other comprehensive losses | (2,878) | (2,682) | ||||
Cost of repurchased stock | (27,744) | (27,251) | ||||
Total stockholders' equity attributable to Altria Group, Inc. | 2,779 | 3,014 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders' equity | 2,779 | 3,014 | ||||
Total Liabilities and Stockholders' Equity | 23,709 | 25,689 | ||||
Reportable Legal Entities [Member] | PM USA [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 1 | 3 | 0 | 1 | ||
Receivables | 4 | 6 | ||||
Inventories: | ||||||
Leaf tobacco | 494 | 616 | ||||
Other raw materials | 131 | 132 | ||||
Work in process | 10 | 4 | ||||
Finished product | 167 | 134 | ||||
Inventory, net | 802 | 886 | ||||
Due from Altria Group, Inc. and subsidiaries | 2,686 | 3,535 | ||||
Deferred income taxes | 1,189 | 1,190 | ||||
Other current assets | 82 | 101 | ||||
Total current assets | 4,764 | 5,721 | ||||
Property, plant and equipment, at cost | 3,103 | 3,112 | ||||
Less accumulated depreciation | 2,116 | 2,091 | ||||
Property, plant and equipment, net | 987 | 1,021 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 2 | 2 | ||||
Investment in SABMiller | 0 | 0 | ||||
Investment in consolidated subsidiaries | 2,769 | 2,775 | ||||
Finance assets, net | 0 | 0 | ||||
Due from Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Other assets | 543 | 541 | ||||
TOTAL ASSETS | 9,065 | 10,060 | ||||
Liabilities [Abstract] | ||||||
Current portion of long-term debt | 0 | 0 | ||||
Accounts payable | 147 | 118 | ||||
Accrued liabilities: | ||||||
Marketing | 588 | 505 | ||||
Employment costs | 9 | 10 | ||||
Settlement charges | 2,199 | 3,495 | ||||
Other | 467 | 400 | ||||
Dividends payable | 0 | 0 | ||||
Due to Altria Group, Inc. and subsidiaries | 374 | 402 | ||||
Total current liabilities | 3,784 | 4,930 | ||||
Long-term debt | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Accrued pension costs | 0 | 0 | ||||
Accrued postretirement health care costs | 1,588 | 1,608 | ||||
Due to Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Other liabilities | 139 | 151 | ||||
Total liabilities | $ 5,511 | $ 6,689 | ||||
Contingencies | ||||||
Redeemable noncontrolling interest | $ 0 | $ 0 | ||||
Stockholders' Equity | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 3,310 | 3,310 | ||||
Earnings reinvested in the business | 578 | 402 | ||||
Accumulated other comprehensive losses | (334) | (341) | ||||
Cost of repurchased stock | 0 | 0 | ||||
Total stockholders' equity attributable to Altria Group, Inc. | 3,554 | 3,371 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders' equity | 3,554 | 3,371 | ||||
Total Liabilities and Stockholders' Equity | 9,065 | 10,060 | ||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 45 | 37 | 47 | 60 | ||
Receivables | 138 | 118 | ||||
Inventories: | ||||||
Leaf tobacco | 371 | 375 | ||||
Other raw materials | 70 | 68 | ||||
Work in process | 357 | 425 | ||||
Finished product | 314 | 286 | ||||
Inventory, net | 1,112 | 1,154 | ||||
Due from Altria Group, Inc. and subsidiaries | 1,192 | 1,279 | ||||
Deferred income taxes | 9 | 9 | ||||
Other current assets | 58 | 122 | ||||
Total current assets | 2,554 | 2,719 | ||||
Property, plant and equipment, at cost | 1,702 | 1,643 | ||||
Less accumulated depreciation | 698 | 681 | ||||
Property, plant and equipment, net | 1,004 | 962 | ||||
Goodwill | 5,285 | 5,285 | ||||
Other intangible assets, net | 12,037 | 12,047 | ||||
Investment in SABMiller | 0 | 0 | ||||
Investment in consolidated subsidiaries | 0 | 0 | ||||
Finance assets, net | 1,339 | 1,614 | ||||
Due from Altria Group, Inc. and subsidiaries | 0 | 0 | ||||
Other assets | 105 | 121 | ||||
TOTAL ASSETS | 22,324 | 22,748 | ||||
Liabilities [Abstract] | ||||||
Current portion of long-term debt | 3 | 0 | ||||
Accounts payable | 124 | 280 | ||||
Accrued liabilities: | ||||||
Marketing | 86 | 113 | ||||
Employment costs | 81 | 158 | ||||
Settlement charges | 7 | 5 | ||||
Other | 236 | 287 | ||||
Dividends payable | 0 | 0 | ||||
Due to Altria Group, Inc. and subsidiaries | 1 | 566 | ||||
Total current liabilities | 538 | 1,409 | ||||
Long-term debt | 16 | 0 | ||||
Deferred income taxes | 4,603 | 4,661 | ||||
Accrued pension costs | 714 | 779 | ||||
Accrued postretirement health care costs | 863 | 853 | ||||
Due to Altria Group, Inc. and subsidiaries | 4,790 | 4,790 | ||||
Other liabilities | 151 | 156 | ||||
Total liabilities | $ 11,675 | $ 12,648 | ||||
Contingencies | ||||||
Redeemable noncontrolling interest | $ 36 | $ 35 | ||||
Stockholders' Equity | ||||||
Common stock | 9 | 9 | ||||
Additional paid-in capital | 11,339 | 10,688 | ||||
Earnings reinvested in the business | 824 | 995 | ||||
Accumulated other comprehensive losses | (1,553) | (1,623) | ||||
Cost of repurchased stock | 0 | 0 | ||||
Total stockholders' equity attributable to Altria Group, Inc. | 10,619 | 10,069 | ||||
Noncontrolling interests | (6) | (4) | ||||
Total stockholders' equity | 10,613 | 10,065 | ||||
Total Liabilities and Stockholders' Equity | 22,324 | 22,748 | ||||
Consolidation, Eliminations [Member] | ||||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Receivables | 0 | 0 | ||||
Inventories: | ||||||
Leaf tobacco | 0 | 0 | ||||
Other raw materials | 0 | 0 | ||||
Work in process | 0 | 0 | ||||
Finished product | 0 | 0 | ||||
Inventory, net | 0 | 0 | ||||
Due from Altria Group, Inc. and subsidiaries | (3,878) | (5,382) | ||||
Deferred income taxes | (56) | (56) | ||||
Other current assets | (8) | (27) | ||||
Total current assets | (3,942) | (5,465) | ||||
Property, plant and equipment, at cost | 0 | 0 | ||||
Less accumulated depreciation | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investment in SABMiller | 0 | 0 | ||||
Investment in consolidated subsidiaries | (14,173) | (13,440) | ||||
Finance assets, net | 0 | 0 | ||||
Due from Altria Group, Inc. and subsidiaries | (4,790) | (4,790) | ||||
Other assets | (324) | (327) | ||||
TOTAL ASSETS | (23,229) | (24,022) | ||||
Liabilities [Abstract] | ||||||
Current portion of long-term debt | 0 | 0 | ||||
Accounts payable | 0 | 0 | ||||
Accrued liabilities: | ||||||
Marketing | 0 | 0 | ||||
Employment costs | 0 | 0 | ||||
Settlement charges | 0 | 0 | ||||
Other | (64) | (83) | ||||
Dividends payable | 0 | 0 | ||||
Due to Altria Group, Inc. and subsidiaries | (3,878) | (5,382) | ||||
Total current liabilities | (3,942) | (5,465) | ||||
Long-term debt | 0 | 0 | ||||
Deferred income taxes | (324) | (327) | ||||
Accrued pension costs | 0 | 0 | ||||
Accrued postretirement health care costs | 0 | 0 | ||||
Due to Altria Group, Inc. and subsidiaries | (4,790) | (4,790) | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | $ (9,056) | $ (10,582) | ||||
Contingencies | ||||||
Redeemable noncontrolling interest | $ 0 | $ 0 | ||||
Stockholders' Equity | ||||||
Common stock | (9) | (9) | ||||
Additional paid-in capital | (14,649) | (13,998) | ||||
Earnings reinvested in the business | (1,402) | (1,397) | ||||
Accumulated other comprehensive losses | 1,887 | 1,964 | ||||
Cost of repurchased stock | 0 | 0 | ||||
Total stockholders' equity attributable to Altria Group, Inc. | (14,173) | (13,440) | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders' equity | (14,173) | (13,440) | ||||
Total Liabilities and Stockholders' Equity | $ (23,229) | $ (24,022) |
Condensed Consolidating Finan67
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Earnings and Comprehensive Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||||
Net revenues | $ 6,613 | $ 6,256 | $ 12,417 | $ 11,773 | ||
Cost of sales | 2,004 | 1,968 | 3,801 | 3,720 | ||
Excise taxes on products | 1,738 | 1,685 | 3,270 | 3,194 | ||
Gross profit | 2,871 | 2,603 | 5,346 | 4,859 | ||
Marketing, administration and research costs | 643 | 638 | 1,253 | 1,158 | ||
Asset impairment and exit costs | 4 | (10) | 4 | (8) | ||
Operating income (expense) | 2,224 | 1,975 | 4,089 | 3,709 | ||
Interest and other debt expense (income), net | 195 | 230 | 404 | 383 | ||
Loss on early extinguishment of debt | 0 | $ 228 | 0 | 228 | 0 | |
Earnings from equity investment in SABMiller | (225) | (200) | (359) | (425) | ||
Earnings (loss) before income taxes | 2,254 | 1,945 | 3,816 | 3,751 | ||
(Benefit) provision for income taxes | 805 | 683 | 1,349 | 1,314 | ||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||
Net earnings | 1,449 | 1,262 | 2,467 | 2,437 | ||
Net earnings attributable to noncontrolling interests | (1) | 0 | (1) | 0 | ||
Net earnings attributable to Altria Group, Inc. | 1,448 | 1,262 | 2,466 | 2,437 | ||
Other comprehensive (losses) earnings, net of deferred income taxes | 67 | 89 | (196) | 149 | $ (1,304) | |
Comprehensive earnings | 1,516 | 1,351 | 2,271 | 2,586 | ||
Comprehensive earnings attributable to noncontrolling interests | (1) | 0 | (1) | 0 | ||
Comprehensive earnings attributable to Altria Group, Inc. | 1,515 | 1,351 | 2,270 | 2,586 | ||
Reportable Legal Entities [Member] | Altria Group, Inc. [Member] | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Net revenues | 0 | 0 | 0 | 0 | ||
Cost of sales | 0 | 0 | 0 | 0 | ||
Excise taxes on products | 0 | 0 | 0 | 0 | ||
Gross profit | 0 | 0 | 0 | 0 | ||
Marketing, administration and research costs | 47 | 65 | 89 | 104 | ||
Asset impairment and exit costs | 0 | 0 | 0 | 0 | ||
Operating income (expense) | (47) | (65) | (89) | (104) | ||
Interest and other debt expense (income), net | 138 | 152 | 292 | 308 | ||
Loss on early extinguishment of debt | 228 | |||||
Earnings from equity investment in SABMiller | (225) | (200) | (359) | (425) | ||
Earnings (loss) before income taxes | 40 | (17) | (250) | 13 | ||
(Benefit) provision for income taxes | (2) | (42) | (145) | (65) | ||
Equity earnings of subsidiaries | 1,406 | 1,237 | 2,571 | 2,359 | ||
Net earnings | 1,448 | 1,262 | 2,466 | 2,437 | ||
Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net earnings attributable to Altria Group, Inc. | 1,448 | 1,262 | 2,466 | 2,437 | ||
Other comprehensive (losses) earnings, net of deferred income taxes | 67 | 89 | (196) | 149 | ||
Comprehensive earnings | 1,515 | 1,351 | 2,270 | 2,586 | ||
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive earnings attributable to Altria Group, Inc. | 1,515 | 1,351 | 2,270 | 2,586 | ||
Reportable Legal Entities [Member] | PM USA [Member] | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Net revenues | 5,810 | 5,443 | 10,878 | 10,261 | ||
Cost of sales | 1,746 | 1,706 | 3,312 | 3,247 | ||
Excise taxes on products | 1,684 | 1,629 | 3,164 | 3,089 | ||
Gross profit | 2,380 | 2,108 | 4,402 | 3,925 | ||
Marketing, administration and research costs | 494 | 465 | 959 | 867 | ||
Asset impairment and exit costs | 0 | (10) | 0 | (8) | ||
Operating income (expense) | 1,886 | 1,653 | 3,443 | 3,066 | ||
Interest and other debt expense (income), net | 1 | 17 | 0 | (47) | ||
Loss on early extinguishment of debt | 0 | |||||
Earnings from equity investment in SABMiller | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes | 1,885 | 1,636 | 3,443 | 3,113 | ||
(Benefit) provision for income taxes | 690 | 607 | 1,274 | 1,154 | ||
Equity earnings of subsidiaries | 65 | 64 | 126 | 117 | ||
Net earnings | 1,260 | 1,093 | 2,295 | 2,076 | ||
Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net earnings attributable to Altria Group, Inc. | 1,260 | 1,093 | 2,295 | 2,076 | ||
Other comprehensive (losses) earnings, net of deferred income taxes | 3 | 3 | 7 | 5 | ||
Comprehensive earnings | 1,263 | 1,096 | 2,302 | 2,081 | ||
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive earnings attributable to Altria Group, Inc. | 1,263 | 1,096 | 2,302 | 2,081 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Net revenues | 815 | 831 | 1,560 | 1,534 | ||
Cost of sales | 270 | 280 | 510 | 495 | ||
Excise taxes on products | 54 | 56 | 106 | 105 | ||
Gross profit | 491 | 495 | 944 | 934 | ||
Marketing, administration and research costs | 102 | 108 | 205 | 187 | ||
Asset impairment and exit costs | 4 | 0 | 4 | 0 | ||
Operating income (expense) | 385 | 387 | 735 | 747 | ||
Interest and other debt expense (income), net | 56 | 61 | 112 | 122 | ||
Loss on early extinguishment of debt | 0 | |||||
Earnings from equity investment in SABMiller | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes | 329 | 326 | 623 | 625 | ||
(Benefit) provision for income taxes | 117 | 118 | 220 | 225 | ||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||
Net earnings | 212 | 208 | 403 | 400 | ||
Net earnings attributable to noncontrolling interests | (1) | 0 | (1) | 0 | ||
Net earnings attributable to Altria Group, Inc. | 211 | 208 | 402 | 400 | ||
Other comprehensive (losses) earnings, net of deferred income taxes | 35 | 20 | 70 | 42 | ||
Comprehensive earnings | 247 | 228 | 473 | 442 | ||
Comprehensive earnings attributable to noncontrolling interests | (1) | 0 | (1) | 0 | ||
Comprehensive earnings attributable to Altria Group, Inc. | 246 | 228 | 472 | 442 | ||
Consolidation, Eliminations [Member] | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Net revenues | (12) | (18) | (21) | (22) | ||
Cost of sales | (12) | (18) | (21) | (22) | ||
Excise taxes on products | 0 | 0 | 0 | 0 | ||
Gross profit | 0 | 0 | 0 | 0 | ||
Marketing, administration and research costs | 0 | 0 | 0 | 0 | ||
Asset impairment and exit costs | 0 | 0 | 0 | 0 | ||
Operating income (expense) | 0 | 0 | 0 | 0 | ||
Interest and other debt expense (income), net | 0 | 0 | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | |||||
Earnings from equity investment in SABMiller | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes | 0 | 0 | 0 | 0 | ||
(Benefit) provision for income taxes | 0 | 0 | 0 | 0 | ||
Equity earnings of subsidiaries | (1,471) | (1,301) | (2,697) | (2,476) | ||
Net earnings | (1,471) | (1,301) | (2,697) | (2,476) | ||
Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net earnings attributable to Altria Group, Inc. | (1,471) | (1,301) | (2,697) | (2,476) | ||
Other comprehensive (losses) earnings, net of deferred income taxes | (38) | (23) | (77) | (47) | ||
Comprehensive earnings | (1,509) | (1,324) | (2,774) | (2,523) | ||
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive earnings attributable to Altria Group, Inc. | $ (1,509) | $ (1,324) | $ (2,774) | $ (2,523) |
Condensed Consolidating Finan68
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Provided by (Used in) Operating Activities | ||
Net cash provided by operating activities | $ 1,247 | $ 759 |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | (99) | (60) |
Acquisition of Green Smoke, net of acquired cash | 0 | (93) |
Proceeds from finance assets | 185 | 189 |
Other | 1 | 66 |
Net cash provided by (used in) investing activities | 87 | 102 |
Cash Provided by (Used in) Financing Activities | ||
Long-term debt repaid | (793) | (525) |
Repurchases of common stock | (455) | (404) |
Dividends paid on common stock | (2,050) | (1,912) |
Changes in amounts due to/from Altria Group, Inc. and subsidiaries | 0 | 0 |
Premium and fees related to early extinguishment of debt | (226) | 0 |
Cash dividends paid to parent | 0 | 0 |
Other | (8) | (2) |
Cash used in financing activities | (3,532) | (2,843) |
Cash and cash equivalents: | ||
Increase (decrease) | (2,198) | (1,982) |
Balance at beginning of period | 3,321 | 3,175 |
Balance at end of period | 1,123 | 1,193 |
Reportable Legal Entities [Member] | Altria Group, Inc. [Member] | ||
Cash Provided by (Used in) Operating Activities | ||
Net cash provided by operating activities | 2,316 | 2,121 |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | 0 | 0 |
Acquisition of Green Smoke, net of acquired cash | 0 | |
Proceeds from finance assets | 0 | 0 |
Other | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash Provided by (Used in) Financing Activities | ||
Long-term debt repaid | (793) | (525) |
Repurchases of common stock | (455) | (404) |
Dividends paid on common stock | (2,050) | (1,912) |
Changes in amounts due to/from Altria Group, Inc. and subsidiaries | (996) | (1,248) |
Premium and fees related to early extinguishment of debt | (226) | |
Cash dividends paid to parent | 0 | 0 |
Other | 0 | 0 |
Cash used in financing activities | (4,520) | (4,089) |
Cash and cash equivalents: | ||
Increase (decrease) | (2,204) | (1,968) |
Balance at beginning of period | 3,281 | 3,114 |
Balance at end of period | 1,077 | 1,146 |
Reportable Legal Entities [Member] | PM USA [Member] | ||
Cash Provided by (Used in) Operating Activities | ||
Net cash provided by operating activities | 1,312 | 846 |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | (25) | (21) |
Acquisition of Green Smoke, net of acquired cash | 0 | |
Proceeds from finance assets | 0 | 0 |
Other | 10 | 70 |
Net cash provided by (used in) investing activities | (15) | 49 |
Cash Provided by (Used in) Financing Activities | ||
Long-term debt repaid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Changes in amounts due to/from Altria Group, Inc. and subsidiaries | 820 | 1,042 |
Premium and fees related to early extinguishment of debt | 0 | |
Cash dividends paid to parent | (2,119) | (1,938) |
Other | 0 | 0 |
Cash used in financing activities | (1,299) | (896) |
Cash and cash equivalents: | ||
Increase (decrease) | (2) | (1) |
Balance at beginning of period | 3 | 1 |
Balance at end of period | 1 | 0 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Cash Provided by (Used in) Operating Activities | ||
Net cash provided by operating activities | 311 | 223 |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | (74) | (39) |
Acquisition of Green Smoke, net of acquired cash | (93) | |
Proceeds from finance assets | 185 | 189 |
Other | (9) | (4) |
Net cash provided by (used in) investing activities | 102 | 53 |
Cash Provided by (Used in) Financing Activities | ||
Long-term debt repaid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Changes in amounts due to/from Altria Group, Inc. and subsidiaries | 176 | 206 |
Premium and fees related to early extinguishment of debt | 0 | |
Cash dividends paid to parent | (573) | (493) |
Other | (8) | (2) |
Cash used in financing activities | (405) | (289) |
Cash and cash equivalents: | ||
Increase (decrease) | 8 | (13) |
Balance at beginning of period | 37 | 60 |
Balance at end of period | 45 | 47 |
Consolidation, Eliminations [Member] | ||
Cash Provided by (Used in) Operating Activities | ||
Net cash provided by operating activities | (2,692) | (2,431) |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | 0 | 0 |
Acquisition of Green Smoke, net of acquired cash | 0 | |
Proceeds from finance assets | 0 | 0 |
Other | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash Provided by (Used in) Financing Activities | ||
Long-term debt repaid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Changes in amounts due to/from Altria Group, Inc. and subsidiaries | 0 | 0 |
Premium and fees related to early extinguishment of debt | 0 | |
Cash dividends paid to parent | 2,692 | 2,431 |
Other | 0 | 0 |
Cash used in financing activities | 2,692 | 2,431 |
Cash and cash equivalents: | ||
Increase (decrease) | 0 | 0 |
Balance at beginning of period | 0 | 0 |
Balance at end of period | $ 0 | $ 0 |
Recent Accounting Guidance No69
Recent Accounting Guidance Not Yet Adopted (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 465 | $ 483 |
Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 77 | $ 83 |