Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 15, 2019 | |
Document And Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment Tag | false | |
Document period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | mo | |
Entity Registrant Name | Altria Group, Inc. | |
Entity Central Index Key | 0000764180 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 1,870,919,863 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 3,352,000,000 | $ 1,333,000,000 | ||
Receivables | 158,000,000 | 142,000,000 | ||
Inventories: | ||||
Leaf tobacco | 930,000,000 | 940,000,000 | ||
Other raw materials | 190,000,000 | 186,000,000 | ||
Work in process | 651,000,000 | 647,000,000 | ||
Finished product | 585,000,000 | 558,000,000 | ||
Inventory, net | 2,356,000,000 | 2,331,000,000 | ||
Income taxes | 3,000,000 | 167,000,000 | ||
Other current assets | 393,000,000 | 326,000,000 | ||
Total current assets | 6,262,000,000 | 4,299,000,000 | ||
Property, plant and equipment, at cost | 4,917,000,000 | 4,950,000,000 | ||
Less accumulated depreciation | 2,995,000,000 | 3,012,000,000 | ||
Property, plant and equipment, net | 1,922,000,000 | 1,938,000,000 | ||
Goodwill | 5,196,000,000 | 5,196,000,000 | ||
Other intangible assets, net | 12,327,000,000 | 12,279,000,000 | ||
Investments in equity securities | 32,015,000,000 | 30,496,000,000 | ||
Other assets | 1,511,000,000 | 1,430,000,000 | ||
Total Assets | 59,233,000,000 | 55,638,000,000 | ||
Liabilities | ||||
Short-term borrowings | 0 | 12,704,000,000 | ||
Current portion of long-term debt | 2,144,000,000 | 1,144,000,000 | ||
Accounts payable | 205,000,000 | 399,000,000 | ||
Accrued liabilities: | ||||
Marketing | 490,000,000 | 586,000,000 | ||
Settlement charges | 4,367,000,000 | 3,454,000,000 | ||
Other | 1,412,000,000 | 1,403,000,000 | ||
Dividends payable | 1,501,000,000 | 1,503,000,000 | ||
Total current liabilities | 10,119,000,000 | 21,193,000,000 | ||
Long-term debt | 27,024,000,000 | 11,898,000,000 | ||
Deferred income taxes | 5,353,000,000 | 5,172,000,000 | ||
Accrued pension costs | 497,000,000 | 544,000,000 | ||
Accrued postretirement health care costs | 1,764,000,000 | 1,749,000,000 | ||
Other liabilities | 357,000,000 | 254,000,000 | ||
Total liabilities | 45,114,000,000 | 40,810,000,000 | ||
Contingencies (Note 12) | ||||
Redeemable noncontrolling interest | 38,000,000 | 39,000,000 | ||
Stockholders’ Equity | ||||
Common stock, par value $0.33 1/3 per share (2,805,961,317 shares issued) | 935,000,000 | 935,000,000 | ||
Additional paid-in capital | 5,943,000,000 | 5,961,000,000 | ||
Earnings reinvested in the business | 43,582,000,000 | 43,962,000,000 | ||
Accumulated other comprehensive losses | (2,717,000,000) | (2,547,000,000) | ||
Cost of repurchased stock (934,207,054 shares at March 31, 2019 and 931,903,722 shares at December 31, 2018) | (33,664,000,000) | (33,524,000,000) | ||
Total stockholders’ equity attributable to Altria | 14,079,000,000 | 14,787,000,000 | ||
Noncontrolling interests | 2,000,000 | 2,000,000 | ||
Total stockholders’ equity | 14,081,000,000 | 14,789,000,000 | $ 15,397,000,000 | $ 15,380,000,000 |
Total Liabilities and Stockholders’ Equity | $ 59,233,000,000 | $ 55,638,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.3333 | $ 0.3333 |
Common stock, shares issued (shares) | 2,805,961,317 | 2,805,961,317 |
Shares repurchased (shares) | 934,207,054 | 931,903,722 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenues | $ 5,628 | $ 6,108 |
Cost of sales | 1,578 | 1,734 |
Excise taxes on products | 1,239 | 1,438 |
Gross profit | 2,811 | 2,936 |
Marketing, administration and research costs | 533 | 618 |
Asset impairment and exit costs | 40 | 2 |
Operating (expense) income | 2,238 | 2,316 |
Interest and other debt expense, net | 384 | 166 |
Net periodic benefit income, excluding service cost | (1) | (7) |
Earnings from equity investment in AB InBev | (86) | (342) |
Loss on Cronos-related financial instruments | 425 | 0 |
Loss on AB InBev/SABMiller business combination | 0 | 33 |
(Loss) earnings before income taxes and equity earnings of subsidiaries | 1,516 | 2,466 |
Provision for income taxes | 395 | 571 |
Net earnings | 1,121 | 1,895 |
Net earnings attributable to noncontrolling interests | (1) | (1) |
Net earnings attributable to Altria | $ 1,120 | $ 1,894 |
Per share data: | ||
Basic and diluted earnings per share attributable to Altria (in usd per share) | $ 0.60 | $ 1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 1,121 | $ 1,895 |
Other comprehensive earnings (losses), net of deferred income taxes: | ||
Benefit plans | 29 | 45 |
AB InBev | (199) | (75) |
Other comprehensive losses, net of deferred income taxes | (170) | (30) |
Comprehensive earnings | 951 | 1,865 |
Comprehensive earnings attributable to noncontrolling interests | (1) | (1) |
Comprehensive earnings attributable to Altria | $ 950 | $ 1,864 |
Condensed Consolidated Statem_3
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] | Non-controlling Interests [Member] | |
Beginning balance at Dec. 31, 2017 | $ 15,380 | $ 935 | $ 5,952 | $ 42,251 | $ (1,897) | $ (31,864) | $ 3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | [1] | 1,894 | 1,894 | |||||
Other comprehensive losses, net of deferred income taxes | (30) | (30) | ||||||
Stock award activity | (5) | (14) | 9 | |||||
Cash dividends declared | (1,329) | (1,329) | ||||||
Repurchases of common stock | (513) | (513) | ||||||
Ending balance at Mar. 31, 2018 | 15,397 | 935 | 5,938 | 42,816 | (1,927) | (32,368) | 3 | |
Beginning balance at Dec. 31, 2018 | 14,789 | 935 | 5,961 | 43,962 | (2,547) | (33,524) | 2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | [2] | 1,120 | 1,120 | |||||
Other comprehensive losses, net of deferred income taxes | (170) | (170) | ||||||
Stock award activity | (7) | (18) | 11 | |||||
Cash dividends declared | (1,500) | (1,500) | ||||||
Repurchases of common stock | (151) | (151) | ||||||
Ending balance at Mar. 31, 2019 | $ 14,081 | $ 935 | $ 5,943 | $ 43,582 | $ (2,717) | $ (33,664) | $ 2 | |
[1] | Amounts attributable to noncontrolling interests for the three months ended March 31, 2019 and 2018 exclude net earnings of $1 million due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars , | |||||||
[2] | Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 12 . Contingencies . |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Net earnings attributable to noncontrolling interests | $ 1 | $ 1 |
Dividends declared (usd per share) | $ 0.8 | $ 0.7 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Provided by (Used in) Operating Activities | ||
Net earnings | $ 1,121 | $ 1,895 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 53 | 53 |
Deferred income tax (benefit) provision | (72) | 54 |
Earnings from equity investment in AB InBev | (86) | (342) |
Loss on AB InBev/SABMiller business combination | 0 | 33 |
Loss on Cronos-related financial instruments | 425 | 0 |
Asset impairment and exit costs, net of cash paid | 17 | (7) |
Cash effects of changes: | ||
Receivables | (16) | 9 |
Inventories | (25) | (30) |
Accounts payable | (189) | (164) |
Income taxes | 471 | 521 |
Accrued liabilities and other current assets | (513) | (267) |
Accrued settlement charges | 913 | 1,018 |
Pension plan contributions | (3) | (7) |
Pension provisions and postretirement, net | (8) | 0 |
Other, net | 201 | 43 |
Net cash provided by operating activities | 2,289 | 2,809 |
Cash Provided by (Used in) Investing Activities | ||
Capital expenditures | (38) | (34) |
Investment in Cronos | (1,831) | 0 |
Other, net | (81) | (7) |
Net cash used in investing activities | (1,950) | (41) |
Cash Provided by (Used in) Financing Activities | ||
Repayment of short-term borrowings | (12,800) | 0 |
Long-term debt issued | 16,265 | 0 |
Repurchases of common stock | (151) | (513) |
Dividends paid on common stock | (1,502) | (1,257) |
Other | (129) | (23) |
Net cash provided by (used in) financing activities | 1,683 | (1,793) |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 2,022 | 975 |
Balance at beginning of period | 1,433 | 1,314 |
Balance at end of period | 3,455 | 2,289 |
Cash, cash equivalents and restricted cash | $ 1,433 | $ 1,314 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation: Background At March 31, 2019 , Altria Group, Inc.’s (“Altria”) wholly-owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is engaged 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; Sherman Group Holdings, LLC and its subsidiaries (“Nat Sherman”), which are engaged in the manufacture and sale of super premium cigarettes and the sale of premium cigars; 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; and Philip Morris Capital Corporation (“PMCC”), which maintains a portfolio of finance assets, substantially all of which are leveraged leases. In December 2018, Altria announced the decision to refocus its innovative product efforts, which included the discontinuation of production and distribution of all e-vapor products by Nu Mark LLC (“Nu Mark”). Prior to that time, Nu Mark was engaged in the manufacture and sale of innovative tobacco products. Other Altria wholly-owned subsidiaries included Altria Group Distribution Company, which provides sales and distribution services to certain Altria operating subsidiaries, and Altria Client Services LLC, which provides various support services in areas such as legal, regulatory, consumer engagement, finance, human resources and external affairs to Altria and its subsidiaries. Altria’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 March 31, 2019 , Altria’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 March 31, 2019 , Altria had a 10.1% economic and voting interest of Anheuser-Busch InBev SA/NV (“AB InBev”), which Altria accounts for under the equity method of accounting using a one-quarter lag. Altria receives cash dividends on its interest in AB InBev and will continue to do so as long as AB InBev pays dividends. In December 2018, Altria, through a wholly-owned subsidiary, purchased shares of non-voting convertible common stock of JUUL Labs, Inc. (“JUUL”), the U.S. leader in e-vapor, representing a 35% economic interest for $12.8 billion . JUUL is engaged in the manufacture and sale of e-vapor products globally. If and when antitrust clearance is obtained, Altria’s non-voting shares will automatically convert to voting shares (“Share Conversion”). At March 31, 2019 , Altria had a 35% economic interest in JUUL, which Altria accounts for as an investment in an equity security. Upon Share Conversion, Altria expects to account for its investment in JUUL under the equity method of accounting. Altria has agreed to non-competition obligations generally requiring that it participate in the e-vapor business only through JUUL as long as Altria is supplying JUUL services, which Altria is committed to doing for at least six years . On March 8, 2019, Altria, through a subsidiary, completed its acquisition of a 45% economic and voting interest in Cronos Group Inc. (“Cronos”), a global cannabinoid company headquartered in Toronto, Canada. At March 31, 2019 , Altria had a 45% economic and voting interest in Cronos, which Altria accounts for under the equity method of accounting using a one-quarter lag. As a result of the one-quarter lag, no earnings/losses from Altria’s equity investment in Cronos were recorded for the quarter ended March 31, 2019. For further discussion of Altria’s investments in equity securities, see Note 4 . Investments in Equity Securities. Share Repurchases In July 2015, Altria’s Board of Directors (the “Board of Directors”) authorized a $1.0 billion share repurchase program that it expanded to $3.0 billion in October 2016 and to $4.0 billion in July 2017 (as expanded, the “July 2015 share repurchase program”). In January 2018, Altria completed the July 2015 share repurchase program, under which it purchased a total of 58.7 million shares of its common stock at an average price of $68.15 per share. Following the completion of the July 2015 share repurchase program, the Board of Directors authorized a new $1.0 billion share repurchase program in January 2018 that it expanded to $2.0 billion in May 2018 (as expanded, the “January 2018 share repurchase program”). At March 31, 2019, Altria had $195 million remaining in the January 2018 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. Altria’s share repurchase activity was as follows: For the Three Months Ended March 31, 2019 2018 (in millions, except per share data) Total number of shares repurchased 2.7 8.0 Aggregate cost of shares repurchased $ 151 $ 513 Average price per share of shares repurchased $ 56.34 $ 64.33 Basis of Presentation The interim condensed consolidated financial statements of Altria are unaudited. It is the opinion of Altria’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’s Annual Report on Form 10-K for the year ended December 31, 2018 . On January 1, 2019, Altria adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and all related ASU amendments (collectively “ASU No. 2016-02”), which requires entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Altria has elected to apply the guidance retrospectively at the beginning of the period of adoption. As a result, comparative periods prior to adoption will continue to be presented in accordance with prior lease guidance, including disclosures. The impact of the adoption was not material to Altria’s consolidated financial statements. As a result of the adoption, Altria and its subsidiaries, as lessees, recorded right-of-use assets and lease liabilities of $179 million at January 1, 2019 for its leases, which were all operating leases. There was no cumulative effect adjustment to the opening balance of earnings reinvested in the business. Right-of-use assets and lease liabilities on Altria’s condensed consolidated balance sheet at March 31, 2019 were not materially different than the amounts recorded upon adoption of ASU No. 2016-02. Additionally, in accordance with ASU No. 2016-02, lessor accounting for leveraged leases that commenced before the January 1, 2019 adoption date of ASU No. 2016-02 is unchanged unless there is a change in the scope of, or the consideration for, such leases. As a result, adoption of ASU No. 2016-02 as it relates to PMCC’s leveraged leases had no impact on Altria’s financial statements at the adoption date. During the first three months of 2019, PMCC had no new leases nor any changes in the scope of or the consideration for its existing leveraged leases. For a description of issued accounting guidance applicable to, but not yet adopted by, Altria, see Note 14 . New Accounting Guidance Not Yet Adopted |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers: Altria disaggregates net revenues based on product type. For further discussion, see Note 9 . Segment Reporting . Altria’s businesses offer cash discounts to customers for prompt payment and calculate cash discounts as a percentage of the list price based on historical experience and agreed-upon payment terms. Altria’s businesses record an allowance for cash discounts, which is included as a contra-asset against receivables on Altria’s condensed consolidated balance sheets. There was no allowance for cash discounts at March 31, 2019 and December 31, 2018 , and there were no differences between amounts recorded as an allowance for cash discounts and cash discounts subsequently given to customers. Altria’s businesses that receive payments in advance of product shipment record such payments as deferred revenue. These payments are included in other accrued liabilities on Altria’s condensed consolidated balance sheets until control of such products is obtained by the customer. Deferred revenue was $233 million and $288 million at March 31, 2019 and December 31, 2018 , respectively. When cash is received in advance of product shipment, Altria’s businesses satisfy their performance obligations within three days of receiving payment. At March 31, 2019 and December 31, 2018 , there were no differences between amounts recorded as deferred revenue and amounts subsequently recognized as revenue. Receivables, which primarily reflect sales of wine produced and/or distributed by Ste. Michelle, were $158 million and $142 million at March 31, 2019 and December 31, 2018 , respectively. At March 31, 2019 and December 31, 2018 , there were no expected differences between amounts recorded and subsequently received, and Altria’s businesses did not record an allowance for doubtful accounts against these receivables. Altria’s businesses record an allowance for returned goods, which is included in other accrued liabilities on Altria’s condensed consolidated balance sheets. While all of Altria’s tobacco operating companies sell tobacco products with dates relative to freshness as printed on product packaging, due to the limited shelf life of USSTC’s smokeless tobacco products it is USSTC’s policy to accept authorized sales returns from its customers for products that have passed such dates. Altria’s businesses record estimated sales returns, which are based principally on historical volume and return rates, as a reduction to revenues. Actual sales returns will differ from estimated sales returns to the extent actual results differ from estimated assumptions. Altria’s businesses reflect differences between actual and estimated sales returns in the period in which the actual amounts become known. These differences, if any, have not had a material impact on Altria’s condensed consolidated financial statements. All returned goods are destroyed upon return and not included in inventory. Consequently, Altria’s businesses do not record an asset for their right to recover goods from customers upon return. Sales incentives include variable payments related to goods sold by Altria’s businesses. Altria’s businesses include estimates of variable consideration as a reduction to revenues upon shipment of goods to customers. The sales incentives that require significant estimates and judgments are as follows: Price promotion payments- Altria’s businesses make price promotion payments, substantially all of which are made to their retail partners, to incent the promotion of certain product offerings in select geographic areas. Wholesale and retail participation payments- Altria’s businesses make payments to their wholesale and retail partners to incent merchandising and sharing of sales data in accordance with each business’s trade agreements. |
Asset Impairment, Exit and Impl
Asset Impairment, Exit and Implmentation Costs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment, Exit and Implementation Costs | Asset Impairment, Exit and Implementation Costs: Pre-tax asset impairment, exit and implementation costs consisted of the following: For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018 Asset Impairment and Exit Costs Implementation Costs (1) Total Asset Impairment and Exit Costs Implementation Costs (2) Total (in millions) Smokeable products $ 36 $ 8 $ 44 $ — $ 1 $ 1 Smokeless products 8 1 9 2 — 2 All other (5 ) — (5 ) — — — General corporate 1 — 1 — — — Total 40 9 49 2 1 3 Plus amounts included in net periodic benefit income, excluding service cost (3) 12 — 12 — — — Total $ 52 $ 9 $ 61 $ 2 $ 1 $ 3 (1) Included in marketing, administration and research costs in Altria’s condensed consolidated statement of earnings. (2) Included in cost of sales in Altria’s condensed consolidated statements of earnings. (3) Represents curtailment costs. See Note 6. Benefit Plans . The 2019 pre-tax asset impairment, exit and implementation costs are related to the cost reduction program discussed below. The movement in the restructuring liabilities, substantially all of which are severance liabilities, was as follows: For the Three Months Ended March 31, 2019 (in millions) Balances at December 31, 2018 $ 155 Charges 40 Cash spent (35 ) Balances at March 31, 2019 $ 160 Cost Reduction Program In December 2018, Altria announced a cost reduction program that includes, among other things, reducing third-party spending and workforce reductions across the businesses. As a result of the cost reduction program, Altria expects to record total pre-tax restructuring charges of approximately $210 million . Of this amount, Altria incurred pre-tax charges of $121 million in 2018 and expects to record the remainder in 2019. The total estimated charges, substantially all of which will result in cash expenditures, relate primarily to employee separation costs of approximately $180 million and other costs of approximately $30 million . Total pre-tax charges incurred since the inception of this cost reduction program were $182 million . Cash payments related to this cost reduction program of $22 million were made during the three months ended March 31, 2019. There were no |
Investments in Equity Securitie
Investments in Equity Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments in Equity Securities | Investments in Equity Securities: Altria’s investments consisted of the following: Carrying Amount March 31, 2019 December 31, 2018 (in millions) AB InBev $ 17,476 $ 17,696 JUUL 12,800 12,800 Cronos (1) 1,739 — Total $ 32,015 $ 30,496 ( 1) Includes investment in Acquired Common Shares ( $397 million ), the Cronos warrant ( $949 million ) and the Fixed-price Preemptive Rights ( $393 million ) as discussed further below. Investment in AB InBev At March 31, 2019 , Altria had a 10.1% economic and voting interest of AB InBev, consisting of 185 million restricted shares of AB InBev (the “Restricted Shares”) and 12 million ordinary shares of AB InBev. Altria accounts for its investment in AB InBev under the equity method of accounting because Altria has the ability to exercise significant influence over the operating and financial policies of AB InBev, including having active representation on AB InBev’s Board of Directors (“AB InBev Board”) and certain AB InBev Board committees. Through this representation, Altria participates in AB InBev policy making processes. At December 31, 2018, AB InBev had derivative financial instruments used to hedge the share price related to 92.4 million of its share commitments. AB InBev’s share price in Euros at March 31, 2019 and December 31, 2018 was €74.76 and €57.70 , respectively. Consistent with the one-quarter lag for reporting AB InBev’s results in Altria’s financial results, Altria will record its share of AB InBev’s first quarter 2019 mark-to-market gains associated with these derivative financial instruments in the second quarter of 2019. Altria reviews its investment in AB InBev for impairment by comparing the fair value of its investment to its carrying value. If the carrying value of Altria’s investment exceeds its fair value and the loss in value is other than temporary, the investment is considered impaired and impairment is recognized in the period identified. The factors used to make this determination include the duration and magnitude of the fair value decline, AB InBev’s financial condition and near-term prospects, and Altria’s intent and ability to hold its investment in AB InBev until recovery. The fair value of Altria’s equity investment in AB InBev is based on: (i) unadjusted quoted prices in active markets for AB InBev’s ordinary shares and was classified in Level 1 of the fair value hierarchy and (ii) observable inputs other than Level 1 prices, such as quoted prices for similar assets for the Restricted Shares, and was classified in Level 2 of the fair value hierarchy. Altria may, in certain instances, pledge or otherwise grant a security interest in all or part of its Restricted Shares. In the event the pledgee or security interest holder forecloses on the Restricted Shares, the relevant Restricted Shares will be automatically converted, one-for-one, into ordinary shares. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share. The fair value of Altria’s equity investment in AB InBev at March 31, 2019 and December 31, 2018 was $16.6 billion and $13.1 billion , respectively, compared with its carrying value of $17.5 billion and $17.7 billion , respectively. At March 31, 2019, the fair value of Altria’s equity investment in AB InBev was less than its carrying value by 5% , as compared to 26% In December 2018, Altria, through a wholly-owned subsidiary, purchased shares of JUUL’s non-voting Class C-1 Common Stock for an aggregate price of $12.8 billion , which will convert automatically to shares of voting Class C Common Stock upon antitrust clearance, and a security convertible into additional shares of Class C-1 Common Stock or Class C Common Stock, as applicable, for no additional payment upon settlement or exercise of certain JUUL convertible securities (the “JUUL Transaction”). At March 31, 2019, Altria owned 35% of the issued and outstanding capital stock of JUUL. Upon Share Conversion, Altria will possess 35% of JUUL’s outstanding voting power, except to the extent that Altria’s percentage ownership has decreased, and have the right to designate one-third of the members of the JUUL Board of Directors, subject to proportionate downward adjustment if Altria’s percentage ownership falls below 30% . Altria received a broad preemptive right to purchase JUUL shares to maintain its ownership percentage and is subject to a standstill restriction under which it may not acquire additional JUUL shares above its 35% interest. Furthermore, Altria agreed not to sell or transfer any of its JUUL shares for six years from December 20, 2018. At March 31, 2019 On March 8, 2019, Altria, through a subsidiary, completed its acquisition of: ▪ 149.8 million newly issued common shares of Cronos (“Acquired Common Shares”), representing a 45% economic and voting interest. ▪ anti-dilution protections to purchase Cronos common shares to maintain its ownership percentage. Certain of the anti-dilution protections provide Altria the ability to purchase additional Cronos common shares at a per share exercise price of CAD $16.25 upon the occurrence of specified events (“Fixed-price Preemptive Rights”). Based on Altria’s assumptions as of March 31, 2019, Altria estimates the Fixed-price Preemptive Rights will allow Altria to purchase up to an additional approximately 40 million common shares of Cronos. ▪ a warrant providing Altria the ability to purchase up to an additional approximately 74 million common shares of Cronos at a per share exercise price of CAD $19.00 , which expires on March 8, 2023. The total purchase price for the Acquired Common Shares, Fixed-price Preemptive Rights and warrant (collectively, “Investment in Cronos”) was CAD $2.4 billion (USD $1.8 billion ). Upon full exercise of the Fixed-price Preemptive Rights, to the extent such rights become available, and the warrant, Altria would own a maximum of 55% of the outstanding common shares of Cronos. In accounting for the acquisition of these assets as of the date of closing, the Fixed-price Preemptive Rights and warrant were recorded at each of their fair values using Black-Scholes option-pricing models, based on the assumptions described in Note 5 . Financial Instruments . In addition, a deferred tax liability related to the Fixed-price Preemptive Rights and warrant was recorded. The residual of the purchase price was allocated to the Acquired Common Shares. Accordingly, the CAD $2.4 billion (USD $1.8 billion ) purchase price was recorded in USD as follows: ▪ $1.2 billion to the warrant; ▪ $0.5 billion to the Fixed-price Preemptive Rights; ▪ $0.4 billion to the Acquired Common Shares; and ▪ $0.3 billion to a deferred tax liability. For a discussion of derivatives related to Altria’s Investment in Cronos, including Altria’s accounting for changes in the fair value of these derivatives, see Note 5 . Financial Instruments . At March 31, 2019, Altria had a 45% economic and voting interest in Cronos, which Altria accounts for under the equity method of accounting. Altria reports its share of Cronos’s results using a one-quarter lag because Cronos’s results are not available in time for Altria to record them in the concurrent period. As a result of the one-quarter lag, no earnings/losses from Altria’s equity investment in Cronos were recorded for the quarter ended March 31, 2019. Altria nominated four directors, including one director who is independent from Altria, who were elected to serve on Cronos’s seven |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments: Altria enters into derivative financial instruments to mitigate the potential impact of certain market risks, including foreign currency exchange rate risk. Altria uses various types of derivative financial instruments, including forward contracts, options and swaps. Altria does not enter into or hold derivative financial instruments for trading or speculative purposes. Altria’s investment in AB InBev, whose functional currency is the Euro, exposes Altria to foreign currency exchange risk on the carrying value of its investment. To manage this risk, Altria designates certain foreign exchange contracts, including cross-currency swap contracts and forward contracts (collectively “foreign currency contracts”), and Euro denominated notes (“foreign currency denominated debt”) as net investment hedges of Altria’s investment in AB InBev. At March 31, 2019 and December 31, 2018 , Altria had foreign currency contracts with aggregate notional amounts of $1,226 million . At March 31, 2019 , Altria had foreign currency denominated debt with an aggregate fair value and carrying value of $4,851 million and $4,740 million , respectively. At December 31, 2018 , Altria had no foreign currency denominated debt. Altria’s estimates of the fair values of its foreign currency contracts are determined using valuation models with significant inputs that are readily available in public markets, or can be derived from observable market transactions, and therefore are classified in Level 2 of the fair value hierarchy. An adjustment for credit risk and nonperformance risk is included in the fair values of foreign currency contracts. See Note 10 . Debt for a discussion of the fair value hierarchy related to Altria’s debt. Altria’s Fixed-price Preemptive Rights and warrant related to its investment in Cronos, which is further discussed in Note 4 . Investments in Equity Securities , are derivative financial instruments, which are required to be recorded at fair value. The fair values of the Fixed-price Preemptive Rights and warrant are estimated using Black-Scholes option-pricing models, adjusted for unobservable inputs, including probability factors and weighting of expected life, volatility levels and risk-free interest rates (which are classified in Level 3 of the fair value hierarchy) based on the following assumptions at: March 31, 2019 March 8, 2019 March 31, 2019 March 8, 2019 Fixed-price Preemptive Rights Warrant Expected life (1) 2.27 years 2.32 years 3.94 years 4 years Expected volatility (2) 92.86% 93.02% 92.86% 93.02% Risk-free interest rate (3)(4) 1.54% 1.61% 1.52% 1.67% Expected dividend yield (5) —% —% —% —% (1) Based on the weighted-average remaining expected life of the Fixed-price Preemptive Rights (with a range from 1.75 years to 7 years) and the March 8, 2023 expiration date of the warrant. (2) Based on a blend of historical volatility levels of the underlying equity security and peer companies. (3) Based on the implied yield currently available on Canadian Treasury zero coupon issues weighted for the remaining expected life of the Fixed-price Preemptive Rights. (4) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the warrant. (5) Based on Cronos’s expected dividend payments . The following table provides a reconciliation of the beginning and ending balance of the Fixed-price Preemptive Rights and warrant, which are classified in Level 3 of the fair value hierarchy: (in millions) Balance at December 31, 2018 $ — Investment in Fixed-price Preemptive Rights and warrant 1,736 Pre-tax losses recognized in net earnings (394 ) Balance at March 31, 2019 $ 1,342 Altria elects to record the gross assets and liabilities of derivative financial instruments executed with the same counterparty on its condensed consolidated balance sheets. The fair values of Altria’s derivative financial instruments on a gross basis included on the condensed consolidated balance sheets were as follows: Fair Value of Assets Fair Value of Liabilities Balance Sheet Classification March 31, 2019 December 31, 2018 Balance Sheet Classification March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: (in millions) Foreign currency contracts Other current assets $ 48 $ 37 Other accrued liabilities $ — $ — Foreign currency contracts Other assets 15 4 Other liabilities — 4 Total $ 63 $ 41 $ — $ 4 Derivatives not designated as hedging instruments: Cronos warrant Investments in equity securities $ 949 $ — Fixed-price Preemptive Rights Investments in equity securities 393 — Total $ 1,342 $ — Total derivatives $ 1,405 $ 41 $ — $ 4 Altria records changes in the fair values of the Fixed-price Preemptive Rights and warrant as gains or losses in the periods in which the changes occur. For the three months ended March 31, 2019, Altria recognized pre-tax unrealized losses of $132 million and $262 million , representing the changes in the fair values of the Fixed-price Preemptive Rights and warrant, respectively, which were recorded in loss on Cronos-related financial instruments in Altria’s condensed consolidated statement of earnings. In January and February 2019, Altria entered into derivative financial instruments in the form of forward contracts, which were settled on March 7, 2019, to hedge Altria’s exposure to CAD to USD foreign currency exchange rate movements, in relation to the CAD $2.4 billion purchase price for the Cronos transaction. The aggregate notional amounts of the forward contracts were USD $1.8 billion (CAD $2.4 billion ). The forward contracts did not qualify for hedge accounting; therefore, for the three months ended March 31, 2019, pre-tax losses of USD $31 million representing changes in the fair values of the forward contracts were recorded in loss on Cronos-related financial instruments in Altria’s condensed consolidated statement of earnings. Counterparties to Altria’s foreign currency contracts are domestic and international financial institutions. Altria is exposed to potential losses due to non-performance by these counterparties. Altria manages its credit risk by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure Altria has with each counterparty, and monitoring the financial condition of each counterparty. No amounts of collateral were received or posted related to derivative assets and liabilities at March 31, 2019 and December 31, 2018 . Net Investment Hedging The pre-tax effects of Altria’s net investment hedges on accumulated other comprehensive losses and the condensed consolidated statements of earnings were as follows: Gain (Loss) Recognized in Accumulated Other Comprehensive Losses Gain Recognized in Net Earnings (1) For the Three Months Ended March 31, 2019 2018 2019 2018 (in millions) Foreign currency contracts $ 23 $ (33 ) $ 9 $ 8 Foreign currency denominated debt 33 — — — Total $ 56 $ (33 ) $ 9 $ 8 (1) Related to amounts excluded from effectiveness testing. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans: Components of Net Periodic Benefit (Income) Cost Net periodic benefit (income) cost consisted of the following: For the Three Months Ended March 31, Pension Postretirement 2019 2018 2019 2018 (in millions) Service cost $ 17 $ 21 $ 4 $ 4 Interest cost 77 68 20 19 Expected return on plan assets (145 ) (146 ) (4 ) (5 ) Amortization: Net loss 42 57 3 9 Prior service cost (credit) 1 1 (7 ) (10 ) Curtailment 7 — 5 — Net periodic benefit (income) cost $ (1 ) $ 1 $ 21 $ 17 Curtailment costs shown in the table above were related to the cost reduction program discussed in Note 3. Asset Impairment, Exit and Implementation Costs . Employer Contributions Altria 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 (“IRS”) regulations. Altria made employer contributions of $3 million to its pension plans during the three months ended March 31, 2019 . Currently, Altria anticipates making additional employer contributions to its pension plans during the remainder of 2019 of up to approximately $45 million , based on current tax law. Altria did not make any employer contributions to its postretirement plans during the three months ended March 31, 2019 . Currently, Altria anticipates making employer contributions to its postretirement plans of up to approximately $60 million in 2019 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Three Months Ended March 31, 2019 2018 (in millions) Net earnings attributable to Altria $ 1,120 $ 1,894 Less: Distributed and undistributed earnings attributable to share-based awards (2 ) (2 ) Earnings for basic and diluted EPS $ 1,118 $ 1,892 Weighted-average shares for basic and diluted EPS 1,874 1,899 |
Other Comprehensive Earnings_Lo
Other Comprehensive Earnings/Losses | 3 Months Ended |
Mar. 31, 2019 | |
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: For the Three Months Ended March 31, 2019 Benefit Plans AB InBev Currency Translation Adjustments and Other Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2018 $ (2,168 ) $ (374 ) $ (5 ) $ (2,547 ) Other comprehensive losses before reclassifications — (238 ) — (238 ) Deferred income taxes — 49 — 49 Other comprehensive losses before reclassifications, net of deferred income taxes — (189 ) — (189 ) Amounts reclassified to net earnings 39 (12 ) — 27 Deferred income taxes (10 ) 2 — (8 ) Amounts reclassified to net earnings, net of deferred income taxes 29 (10 ) — 19 Other comprehensive earnings (losses), net of deferred income taxes 29 (199 ) (1 ) — (170 ) Balances, March 31, 2019 $ (2,139 ) $ (573 ) $ (5 ) $ (2,717 ) For the Three Months Ended March 31, 2018 Benefit Plans AB InBev Currency Translation Adjustments and Other Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2017 $ (1,839 ) $ (54 ) $ (4 ) $ (1,897 ) Other comprehensive losses before reclassifications — (81 ) — (81 ) Deferred income taxes — 16 — 16 Other comprehensive losses before reclassifications, net of deferred income taxes — (65 ) — (65 ) Amounts reclassified to net earnings 61 (13 ) — 48 Deferred income taxes (16 ) 3 — (13 ) Amounts reclassified to net earnings, net of deferred income taxes 45 (10 ) — 35 Other comprehensive earnings (losses), net of deferred income taxes 45 (75 ) (1 ) — (30 ) Balances, March 31, 2018 $ (1,794 ) $ (129 ) $ (4 ) $ (1,927 ) (1) Primarily reflects Altria’s share of AB InBev’s currency translation adjustments and the impact of Altria’s designated net investment hedges. For further discussion of designated net investment hedges, see Note 5. For the Three Months Ended March 31, 2019 2018 (in millions) Benefit Plans: (1) Net loss $ 49 $ 70 Prior service cost/credit (10 ) (9 ) 39 61 AB InBev (2) (12 ) (13 ) Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 27 $ 48 (1) Amounts are included in net defined benefit plan costs. For further details, see Note 6 . Benefit Plans. (2) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting: The products of Altria’s subsidiaries include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA and Nat Sherman, machine-made large cigars and pipe tobacco manufactured and sold by Middleton and premium cigars sold by Nat Sherman; smokeless tobacco products, consisting of moist smokeless tobacco and snus products manufactured and sold by USSTC; and wine produced and/or distributed by Ste. Michelle. The products and services of these subsidiaries constitute Altria’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’s chief operating decision maker (the “CODM”) 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 general corporate expenses and amortization of intangibles. Interest and other debt expense, net, net periodic benefit cost/income, excluding service cost, 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 the CODM. Segment data were as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Net revenues: Smokeable products $ 4,935 $ 5,414 Smokeless products 540 525 Wine 151 142 All other 2 27 Net revenues $ 5,628 $ 6,108 Earnings before income taxes: Operating companies income (loss): Smokeable products $ 1,932 $ 2,038 Smokeless products 358 338 Wine 15 17 All other (12 ) (26 ) Amortization of intangibles (8 ) (5 ) General corporate expenses (46 ) (46 ) Corporate asset impairment and exit costs (1 ) — Operating income 2,238 2,316 Interest and other debt expense, net (384 ) (166 ) Net periodic benefit income, excluding service cost 1 7 Earnings from equity investment in AB InBev 86 342 Loss on Cronos-related financial instruments (425 ) — Loss on AB InBev/SABMiller business combination — (33 ) Earnings before income taxes $ 1,516 $ 2,466 The comparability of operating companies income for the reportable segments was affected by the following: Non-Participating Manufacturer (“NPM”) Adjustment Items - For the three months ended March 31, 2018, pre-tax income of $68 million for NPM adjustment items was recorded by PM USA as a reduction to cost of sales, which increased operating companies income in the smokeable products segment. NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation - NPM Adjustment Disputes in Note 12 . Contingencies ) . Tobacco and Health Litigation Items - Pre-tax charges related to certain tobacco and health litigation items were recorded in Altria’s condensed consolidated statements of earnings as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Smokeable products segment $ 15 $ 24 Interest and other debt expense, net 2 4 Total $ 17 $ 28 The amounts shown in the table above for the smokeable products segment were recorded in marketing, administration and research costs. For further discussion, see Note 12 . Contingencies . Asset Impairment, Exit and Implementation Costs - See Note 3 . Asset Impairment, Exit and Implementation Costs |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt: Short-term Borrowings and Borrowing Arrangements At March 31, 2019 , Altria had no short-term borrowings. At December 31, 2018 , Altria had $12.7 billion of short-term borrowings, net of $96 million of debt issuance costs, under the term loan agreement discussed below. On December 20, 2018, Altria entered into a senior unsecured term loan agreement in connection with its investments in JUUL and Cronos (the “Term Loan Agreement”). At December 31, 2018, Altria had aggregate short-term borrowings under the Term Loan Agreement of $12.8 billion . Borrowings under the Term Loan Agreement were set to mature on December 19, 2019. In February 2019, Altria repaid all of the outstanding $12.8 billion of short-term borrowings under the Term Loan Agreement with net proceeds from the issuance of long-term senior unsecured notes. See Long-term Debt below. Upon repayment, the Term Loan Agreement terminated in accordance with its terms. In the first quarter of 2019, Altria recorded $96 million of pre-tax acquisition-related costs for the write-off of the debt issuance costs related to the Term Loan Agreement, which were recorded in interest and other debt expense, net in Altria’s condensed consolidated statement of earnings. At December 31, 2018, Altria’s estimate of the fair value of its short-term borrowings was derived from discounted future cash flows based on the contractual terms of the Term Loan Agreement and observable interest rates and was classified in Level 2 of the fair value hierarchy. The fair value of Altria’s short-term borrowings at December 31, 2018 approximated its carrying value. At December 31, 2018, accrued interest on short-term borrowings of $15 million was included in other accrued liabilities on Altria’s condensed consolidated balance sheet. Long-term Debt In February 2019, Altria issued USD denominated and Euro denominated long-term senior unsecured notes in the aggregate principal amounts of $11.5 billion and €4.25 billion , respectively (collectively, the “Notes”). Altria immediately converted the proceeds of the Euro denominated notes into USD of $4.8 billion . The net proceeds from the Euro notes and a portion of the net proceeds from the USD notes were used to repay in full the $12.8 billion of short-term borrowings under the Term Loan Agreement, which were incurred to fund Altria’s investment in JUUL. The remaining net proceeds from the USD notes were used to fund Altria’s investment in Cronos in the first quarter of 2019 and for other general corporate purposes. The Notes contain the following terms: USD denominated notes ▪ $1.0 billion at 3.490% , due 2022 , interest payable semiannually beginning August 14, 2019; ▪ $1.0 billion at 3.800% , due 2024 , interest payable semiannually beginning August 14, 2019; ▪ $1.5 billion at 4.400% , due 2026 , interest payable semiannually beginning August 14, 2019; ▪ $3.0 billion at 4.800% , due 2029 , interest payable semiannually beginning August 14, 2019; ▪ $2.0 billion at 5.800% , due 2039 , interest payable semiannually beginning August 14, 2019; ▪ $2.5 billion at 5.950% , due 2049 , interest payable semiannually beginning August 14, 2019; and ▪ $0.5 billion at 6.200% , due 2059 , interest payable semiannually beginning August 14, 2019. Euro denominated notes ▪ €1.25 billion at 1.000% , due 2023 , interest payable annually beginning February 15, 2020; ▪ €0.75 billion at 1.700% , due 2025 , interest payable annually beginning June 15, 2020; ▪ €1.0 billion at 2.200% , due 2027 , interest payable annually beginning June 15, 2020; and ▪ €1.25 billion at 3.125% , due 2031 , interest payable annually beginning June 15, 2020. The Notes are Altria’s senior unsecured obligations and rank equally in right of payment with all of Altria’s existing and future senior unsecured indebtedness. Upon the occurrence of both (i) a change of control of Altria and (ii) the notes ceasing to be rated investment grade by each of Moody’s Investors Service, Inc., Standard & Poor’s Ratings Services and Fitch Ratings Ltd. within a specified time period, Altria will be required to make an offer to purchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest to the date of repurchase as and to the extent set forth in the terms of the Notes. Altria designated its Euro denominated notes as a net investment hedge of its investment in AB InBev. For further discussion, see Note 5 . Financial Instruments . The obligations of Altria under the Notes are guaranteed by PM USA. For further discussion, see Note 13 . Condensed Consolidating Financial Information . Altria’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’s total long-term debt at March 31, 2019 and December 31, 2018 , was $29.9 billion and $12.5 billion , respectively, as compared with its carrying value of $29.2 billion and $13.0 billion , respectively. At March 31, 2019 and December 31, 2018, accrued interest on long-term debt of $210 million and $207 million |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The income tax rate of 26.1% for the three months ended March 31, 2019 increased 2.9 percentage points from the three months ended March 31, 2018. The increase was due primarily to the following: ▪ tax benefits of $22 million in 2018 related to prior audit years; • tax benefits of $20 million in 2018 related to the 2017 Tax Cuts and Jobs Act; and • tax expense of $11 million in 2019 for a valuation allowance on foreign tax credit carryforwards that are not realizable; partially offset by: ▪ tax benefits of $11 million related to the effective settlement in March 2019 of the IRS audit of Altria and its consolidated subsidiaries’ 2014-2015 tax years. Altria is subject to income taxation in many jurisdictions. Unrecognized tax benefits reflect the difference between tax positions taken or expected to be taken on income tax returns and the amounts recognized in the financial statements. Resolution of the related tax positions with the relevant tax authorities may take many years to complete, and such timing is not entirely within the control of Altria. At March 31, 2019, Altria’s total unrecognized tax benefits were $55 million . The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate at March 31, 2019 was $45 million , along with $10 million affecting deferred taxes. It is reasonably possible that within the next 12 months certain examinations will be resolved, which could result in a decrease in unrecognized tax benefits of approximately $14 million . At December 31, 2018, Altria’s total unrecognized tax benefits were $85 million . The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate at December 31, 2018 was $59 million , along with $26 million |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: Legal proceedings covering a wide range of matters are pending or threatened in various United States and foreign jurisdictions against Altria 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, shareholders 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, have ranged 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 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 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 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. States, including Florida, may also seek to repeal or alter bond cap statutes through legislation. Although Altria cannot predict the outcome of such challenges, it is possible that the consolidated results of operations, cash flows or financial position of Altria, 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 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 12 . 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 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, 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 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 and its subsidiaries may enter into settlement discussions in particular cases if they believe it is in the best interests of Altria to do so. Overview of Altria 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 as of April 22, 2019, April 23, 2018 and April 27, 2017: April 22, 2019 April 23, 2018 April 27, 2017 Individual Smoking and Health Cases (1) 98 102 80 Smoking and Health Class Actions and Aggregated Claims Litigation (2) 2 4 5 Health Care Cost Recovery Actions (3) 1 1 1 “Lights/Ultra Lights” Class Actions 2 3 5 (1) Includes 29 cases filed in Massachusetts and 38 non- Engle cases filed in Florida. 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 (these Engle progeny cases are discussed below in Smoking and Health Litigation - Engle Class Action ). Also does not include 1,490 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 allowed class members to file individual lawsuits seeking compensatory damages, but prohibited them from seeking punitive damages. In March 2018, 923 of these cases were voluntarily dismissed without prejudice. (2) The 2017 pending cases include as one case the 30 civil actions that were to be tried in six consolidated trials in West Virginia ( In re: Tobacco Litigation ). PM USA was a defendant in nine of the 30 cases. The parties resolved these cases for an immaterial amount and in the second quarter of 2018, the court dismissed all 30 cases. (3) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. International Tobacco-Related Cases As of April 22, 2019, PM USA is a named defendant in 10 health care cost recovery actions in Canada, eight of which also name Altria as a defendant. PM USA and Altria 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 and Philip Morris International Inc. (“PMI”) that provides for indemnities for certain liabilities concerning tobacco products. Tobacco-Related Cases Set for Trial As of April 22, 2019, 4 Engle progeny cases are set for trial through June 30, 2019. In addition, there are no individual smoking and health cases against PM USA set for trial during this period. Cases against other companies in the tobacco industry may also be scheduled for trial during this period. Trial dates are subject to change. Trial Results Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 65 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 43 of the 65 cases. These 43 cases were tried in Alaska ( 1 ), California ( 7 ), Connecticut ( 1 ), Florida ( 10 ), Louisiana ( 1 ), Massachusetts ( 3 ), Mississippi ( 1 ), Missouri ( 4 ), 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 jury returned a verdict in favor of PM USA in April 2018 in the third trial of this case. In May 2018, plaintiff filed a motion for a new trial, which the court denied. Of the 22 non- Engle progeny cases in which verdicts were returned in favor of plaintiffs, 20 have reached final resolution. See Smoking and Health Litigation - Engle Progeny Trial Results below for a discussion of verdicts in state and federal Engle progeny cases involving PM USA as of April 22, 2019. 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 settlements (including related costs and fees) totaling approximately $668 million and interest totaling approximately $211 million as of March 31, 2019. These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $276 million and interest totaling approximately $49 million . The changes in Altria’s accrued liability for tobacco and health litigation items, including related interest costs, for the periods specified below are as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Accrued liability for tobacco and health litigation items at beginning of period (1) $ 112 $ 106 Pre-tax charges for: Tobacco and health litigation 15 24 Related interest costs 2 4 Payments (1) (109 ) (23 ) Accrued liability for tobacco and health litigation items at end of period (1) $ 20 $ 111 (1) Includes amounts related to the costs of implementing the corrective communications remedy related to the Federal Government’s Lawsuit discussed below. The accrued liability for tobacco and health litigation items, including related interest costs, was included in liabilities on Altria’s condensed consolidated balance sheets. Pre-tax charges for tobacco and health litigation were included in marketing, administration and research costs on Altria’s condensed consolidated statements of earnings. Pre-tax charges for related interest costs were included in interest and other debt expense, net on Altria’s condensed consolidated statements of earnings. Security for Judgments To obtain stays of judgments pending appeal, PM USA has posted various forms of security. As of March 31, 2019 , PM USA has posted appeal bonds totaling approximately $103 million , which have been collateralized with restricted cash that are included in 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 2019 in which a verdict was returned in favor of plaintiff and against PM USA. Charts listing certain verdicts for plaintiffs in the Engle progeny cases can be found in Smoking and Health Litigation - Engle Progeny Trial Results below. Capone: In December 2018, a jury in a Florida state court returned a verdict in favor of plaintiff, awarding $225,000 in compensatory damages. In the first quarter of 2019, PM USA recorded a provision on its condensed consolidated balance sheet of approximately $325,000 for the judgment and related costs and paid this amount in April 2019, concluding this litigation. Gentile : In October 2017, a jury in a Florida state court returned a verdict in favor of plaintiff, awarding approximately $7.1 million in compensatory damages and allocating 75% of the fault to PM USA (an amount of approximately $5.3 million ). In April 2018, the trial court entered final judgment in favor of plaintiff. In May 2018, PM USA filed a notice of appeal to the Florida Fourth District Court of Appeal. 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 health care 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 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. In August 2006, PM USA and plaintiffs sought rehearing from the Florida Supreme Court on parts of its July 2006 opinion. 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. In May 2007, defendants filed a petition for writ of certiorari with the United States Supreme Court, which was denied. In February 2008, the trial court decertified the class. Engle Progeny Cases The deadline for filing Engle progeny cases expired in January 2008. As of April 22, 2019, approximately 2,000 state court cases were pending against PM USA or Altria asserting individual claims by or on behalf of approximately 2,600 state court plaintiffs. Because of a number of factors, including, docketing delays, duplicated filings and overlapping dismissal orders, these numbers are estimates. While the Federal Engle Agreement (discussed below) resolved nearly all Engle progeny cases pending in federal court, as of April 22, 2019, approximately 4 cases were pending against PM USA in federal court representing the cases excluded from that agreement. Agreement to Resolve Federal Engle Progeny Cases In 2015, PM USA, R.J. Reynolds Tobacco Company (“R.J. Reynolds”) and Lorillard Tobacco Company (“Lorillard”) resolved approximately 415 pending federal Engle progeny cases (the “Federal Engle Agreement”). Federal cases that were in trial and those that previously reached final verdict were not included in the Federal Engle Agreement. Engle Progeny Trial Results As of April 22, 2019, 130 federal and state Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court Engle decision. Seventy-three verdicts were returned in favor of plaintiffs and seven verdicts ( Skolnick , Calloway , McCoy , Gloger , Duignan , Caprio and Oshinsky-Blacker ) that were initially returned in favor of plaintiffs were reversed post-trial or on appeal and remain pending. Skolnick was remanded for a new trial on plaintiff’s concealment and conspiracy claims; Calloway was reversed and remanded for a new trial on an appellate finding that improper arguments by plaintiff’s counsel deprived defendants of a fair trial; McCoy and Gloger were reversed and remanded for a new trial on appellate findings that the trial court erred in admitting certain materials into evidence that deprived defendants of fair trials; Duignan was reversed and remanded for a new trial on an appellate finding that the trial judge erred in responding to a question from the jury during deliberations; Caprio was reversed post-trial after defendants agreed to voluntarily dismiss their appeal in exchange for a full retrial; and Oshinsky-Blacker was reversed post-trial based on plaintiff’s counsel’s improper arguments at trial. Forty-six verdicts were returned in favor of PM USA, of which 41 were state cases. In addition, there have been a number of mistrials, only some of which have resulted in new trials as of April 22, 2019. Four verdicts ( Pearson, D. Cohen , Collar and Chacon ) that were returned in favor of PM USA were subsequently reversed for new trials. Juries in two cases ( Reider and Banks ) returned zero damages verdicts in favor of PM USA . Juries in two other cases ( Weingart and Hancock ) returned verdicts against PM USA awarding no damages, but the trial court in each case decided to award the plaintiffs damages. One case, Pollari, resulted in a verdict in favor of PM USA following a retrial of an initial verdict returned in favor of plaintiff. Plaintiff has filed a motion for a new trial. The charts below list the verdicts and post-trial developments in certain Engle progeny cases in which verdicts were returned in favor of plaintiffs. The first chart lists such cases that are pending as of April 22, 2019 where PM USA has recorded a provision in its condensed consolidated financial statements because an unfavorable outcome is probable and the amount of the loss can be reasonably estimated; the second chart lists other such cases that are pending as of April 22, 2019 but where an unfavorable outcome is not probable and the amount of loss cannot be reasonably estimated; and the third chart lists other such cases that have concluded within the previous 12 months. Unless otherwise noted for a particular case, the jury’s award for compensatory damages will not be reduced by any finding of plaintiff’s comparative fault (see Engle Progeny Appellate Issues below for a discussion of the Florida Supreme Court’s decision in Schoeff ). Further, the damages noted reflect adjustments based on post-trial or appellate rulings. Currently Pending Engle Cases with Accrued Liabilities (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (All Defendants) Punitive Damages (PM USA) Appeal Status Accrual (1) Berger ( Cote ) September 2014 PM USA Federal Court - Middle District of Florida $6 million $21 million The Eleventh Circuit Court of Appeals reinstated the punitive and compensatory damages awards and remanded the case to the district court. PM USA’s challenge to the punitive damages award in the district court is pending. $6 million accrual in the fourth quarter of 2018 (1) Accrual amounts include interest and associated costs, if applicable. For cases with multiple defendants, if any, accrual amounts reflect the portion of compensatory damages PM USA believes it will have to pay if the case is ultimately decided in plaintiff’s favor after taking into account any portion potentially payable by the other defendant(s). Other Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Appeal Status McCall March 2019 PM USA Broward <$1 million (<$1 million PM USA) <$1 million New trial ordered on punitive damages. Neff March 2019 PM USA and R.J. Reynolds Broward $4 million $2 million Post-trial motions pending. Frogel March 2019 PM USA Palm Beach <$1 million (<$1 million PM USA) $0 Post-trial motions pending. Mahfuz February 2019 PM USA and R.J. Reynolds Broward $12 million $10 million Post-trial motions pending. Holliman February 2019 PM USA Miami-Dade $3 million $0 Post-trial motions pending. Other Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Appeal Status Chadwell September 2018 PM USA Miami-Dade $2 million $0 Appeals by plaintiff and defendant to Third District Court of Appeal pending. Kaplan July 2018 PM USA and R.J. Reynolds Broward $2 million $2 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Landi June 2018 PM USA and R.J. Reynolds Broward $8 million $5 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Theis May 2018 PM USA and R.J. Reynolds Sarasota $7 million $10 million Defendants’ appeal to Second District Court of Appeal pending. Freeman March 2018 PM USA Alachua $4 million $0 Defendant’s appeal to First District Court of Appeal pending. Gloger February 2018 PM USA and R.J. Reynolds Miami-Dade $8 million $5 million Third District Court of Appeal reversed judgment and ordered a new trial; plaintiff’s motion for rehearing pending. Bryant December 2017 PM USA Escambia <$1 million <$1 million Defendant’s appeal to First District Court of Appeal pending. R. Douglas November 2017 PM USA Duval <$1 million $0 Awaiting entry of final judgment by the trial court. Wallace October 2017 PM USA and R.J. Reynolds Brevard $12 million $16 million Fifth District Court of Appeal affirmed trial court judgment. Sommers April 2017 PM USA Miami-Dade $1 million $0 New trial ordered on punitive damages; appeals by plaintiff and defendant to Third District Court of Appeal pending. Santoro March 2017 PM USA, R.J. Reynolds and Liggett Group Broward $2 million $0 Trial court set aside punitive damages award; appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Cooper September 2015 PM USA and R.J. Reynolds Broward $5 million $0 Fourth District Court of Appeal affirmed judgment and granted a new trial on punitive damages. McCoy July 2015 PM USA, Broward $2 million $3 million Fourth District Court of Appeal reversed judgment and ordered a new trial; plaintiff requested review by the Florida Supreme Court; case currently stayed. D. Brown January 2015 PM USA Federal Court - Middle District of Florida $8 million $9 million Appeal to U.S. Court of Appeals for the Eleventh Circuit pending. Kerrivan October 2014 PM USA and R.J. Reynolds Federal Court - Middle District of Florida $16 million $16 million Appeals by plaintiff and defendants to U.S. Court of Appeals for the Eleventh Circuit pending. Harris July 2014 PM USA, Federal Court - Middle District of Florida $2 million (<$ 1 million PM USA) $0 Awaiting entry of amended final judgment applying comparative fault. (1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount (if any) Payment Date J. Brown February 2017 PM USA and R.J. Reynolds Pinellas First quarter of 2019 $4 million April 2019 L. Martin May 2017 PM USA Miami-Dade First quarter of 2019 $2 million April 2019 Danielson November 2015 PM USA Escambia First quarter of 2019 $3 million March 2019 S. Martin November 2016 PM USA and Broward First quarter of 2019 $5 million March 2019 Searcy April 2013 PM USA and Federal Court - Middle District of Florida Third quarter of 2018 $2 million March 2019 Boatright November 2014 PM USA and Liggett Group Polk Second quarter of 2018 $42 million March 2019 M. Brown May 2015 PM USA Duval Second quarter of 2018 $8 million March 2019 Jordan August 2015 PM USA Duval Second quarter of 2018 $11 million March 2019 Pardue December 2016 PM USA and Alachua Second and Third quarters of 2018 $11 million March 2019 McKeever February 2015 PM USA Broward Fourth quarter of 2017 $21 million March 2019 Boulter December 2018 PM USA and Lee Fourth quarter of 2018 <$1 million January 2019 Simon September 2018 PM USA and Broward Fourth quarter of 2018 <$1 million October 2018 Perrotto November 2014 PM USA, Palm Beach Third quarter of 2018 $1 million September 2018 Gore March 2015 PM USA and Indian River First quarter of 2018 $1 million September 2018 Putney April 2010 PM USA, Broward Third quarter of 2018 $5 million September 2018 Sermons July 2016 PM USA and Duval Third quarter of 2018 <$1 million August 2018 Tognoli November 2015 PM USA Broward Fourth quarter of 2017 $1 million May 2018 Howles November 2016 PM USA and Broward First quarter of 2018 $6 million May 2018 Purdo April 2016 PM USA and Palm Beach First quarter of 2018 $10 million May 2018 Griffin June 2014 PM USA Federal Court - Middle District of Florida Second quarter of 2017 $1 million May 2018 Ledoux December 2015 PM USA and Miami-Dade Fourth quarter of 2017 $20 million May 2018 Burkhart May 2014 PM USA, Federal Court - Middle District of Florida Second quarter of 2018 $2 million May 2018 Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount (if any) Payment Date Barbose November 2015 PM USA and Pasco Fourth quarter of 2017 $12 million May 2018 Allen November 2014 PM USA and Duval First quarter of 2018 $10 million May 2018 Ahrens February 2016 PM USA and Pinellas Fourth quarter of 2017 $7 million May 2018 Engle Progeny Appellate Issues In Douglas , an Engle progeny case against PM USA and R.J. Reynolds, in March 2012, the Florida Second District Court of Appeal issued a decision affirming the judgment of the trial court in favor of the plaintiff and upholding the use of the Engle jury findings with respect to strict liability claims but certified to the Florida Supreme Court the question of whether granting res judicata effect to the Engle jury findings violates defendants’ federal due process rights. In March 2013, the Florida Supreme Court affirmed the final judgment entered in favor of plaintiff upholding the use of the Engle jury findings with respect to strict liability and negligence claims. PM USA’s subsequent petition for writ of certiorari with the United States Supreme Court was unsuccessful. In Graham , an Engle progeny case against PM USA and R.J. Reynolds, in April 2015, the U.S. Court of Appeals for the Eleventh Circuit found in favor of defendants on the basis of federal preemption, reversing the trial court’s denial of judgment as a matter of law. Thereafter, plaintiff filed a petition for rehearing en banc , which the Eleventh Circuit granted in January 2016. In May 2017, the U.S. Court of Appeals for the Eleventh Circuit rejected defendants’ preemption and due process arguments and affirmed the final judgment entered in plaintiff’s favor. In September 2017, defendants filed a petition for writ of certiorari with the United States Supreme Court on due process and federal preemption grounds, which the court denied in January 2018. In January 2016, in Marotta , a case against R.J. Reynolds on appeal to the Florida Fourth District Court of Appeal, the court rejected R.J. Reynolds’s federal preemption defense, but noted the conflict with Graham and certified the preemption question to the Florida Supreme Court. In March 2016, the Florida Supreme Court accepted review of Marotta and in April 2017, affirmed the Fourth District Court of Appeal’s ruling on preemption. In Burkhart and Searcy , Engle progeny cases against PM USA and R.J. Reynolds, defendants argued that application of the Engle findings to the Engle progeny plaintiffs’ concealment and conspiracy claims violated defendants’ due process rights. In March 2018, in Burkhart , the Eleventh Circuit rejected defendants’ due process arguments and affirmed the final judgment entered in plaintiff’s favor. Defendants filed a motion for rehearing challenging that decision, which the Eleventh Circuit denied. In September 2018, in Searcy , the Eleventh Circuit also affirmed the judgment in plaintiff’s favor and in February 2019, the United States Supreme Court denied PM USA’s petition for writ of certiorari. In Soffer , an Engle progeny case against R.J. Reynolds, the Florida Supreme Court ruled in 2016 that Engle progeny plaintiffs can recover punitive damages in connection with all of their claims. Plaintiffs now generally seek punitive damages in connection with all of their claims in Engle progeny cases. In Schoeff , another Engle progeny case against R.J. Reynolds, the Florida Supreme Court ruled in 2016 that comparative fault does not reduce compensatory damages awards for intentional torts. Florida Bond Statute In June 2009, Florida amended its existing bond cap statute by adding a $200 million bond cap that applies to all state Engle progeny lawsuits in the aggregate and establishes individual bond caps for individual Engle progeny cases in amounts that vary depending on the number of judgments in effect at a given time. Plaintiffs in three state Engle progeny cases against R.J. Reynolds in Alachua County, Florida ( Alexander , Townsend and Hall ) and one case in Escambia County ( Clay ) challenged the constitutionality of the bond cap statute. The Florida Attorney General intervened in these cases in defense of the constitutionality of the statute. Trial court rulings were rendered in Clay , Alexander , |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
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, has guaranteed Altria’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’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 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 or any successor; ▪ the date, if any, on which Altria 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’s long-term senior unsecured debt by Standard & Poor’s Ratings Services of A or higher. At March 31, 2019 , the respective principal 100% owned subsidiaries of Altria 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 March 31, 2019 and December 31, 2018 , condensed consolidating statements of earnings and comprehensive earnings for the three months ended March 31, 2019 and 2018 , and condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018 for Altria, PM USA and, collectively, Altria’s other subsidiaries that are not guarantors of Altria’s debt instruments (the “Non-Guarantor Subsidiaries”). March 31, 2019 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Assets Cash and cash equivalents $ 3,318 $ — $ 34 $ — $ 3,352 Receivables — 19 139 — 158 Inventories: Leaf tobacco — 544 386 — 930 Other raw materials — 122 68 — 190 Work in process — 10 641 — 651 Finished product — 159 426 — 585 — 835 1,521 — 2,356 Due from Altria and subsidiaries 82 4,574 1,166 (5,822 ) — Income taxes 189 3 — (189 ) 3 Other current assets 62 225 106 — 393 Total current assets 3,651 5,656 2,966 (6,011 ) 6,262 Property, plant and equipment, at cost — 2,931 1,986 — 4,917 Less accumulated depreciation — 2,128 867 — 2,995 — 803 1,119 — 1,922 Goodwill — — 5,196 — 5,196 Other intangible assets, net — 2 12,325 — 12,327 Investments in equity securities 17,476 — 14,539 — 32,015 Investment in consolidated subsidiaries 27,378 2,825 — (30,203 ) — Due from Altria and subsidiaries 4,790 — — (4,790 ) — Other assets 204 1,030 947 (670 ) 1,511 Total Assets $ 53,499 $ 10,316 $ 37,092 $ (41,674 ) $ 59,233 Condensed Consolidating Balance Sheets (Continued) March 31, 2019 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Liabilities Current portion of long-term debt $ 2,144 $ — $ — $ — $ 2,144 Accounts payable 1 66 138 — 205 Accrued liabilities: Marketing — 418 72 — 490 Settlement charges — 4,359 8 — 4,367 Other 311 715 575 (189 ) 1,412 Dividends payable 1,501 — — — 1,501 Due to Altria and subsidiaries 5,192 433 197 (5,822 ) — Total current liabilities 9,149 5,991 990 (6,011 ) 10,119 Long-term debt 27,024 — — — 27,024 Deferred income taxes 2,992 — 3,031 (670 ) 5,353 Accrued pension costs 188 — 309 — 497 Accrued postretirement health care costs — 1,074 690 — 1,764 Due to Altria and subsidiaries — — 4,790 (4,790 ) — Other liabilities 67 93 197 — 357 Total liabilities 39,420 7,158 10,007 (11,471 ) 45,114 Contingencies Redeemable noncontrolling interest — — 38 — 38 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,943 3,310 26,994 (30,304 ) 5,943 Earnings reinvested in the business 43,582 64 1,903 (1,967 ) 43,582 Accumulated other comprehensive losses (2,717 ) (216 ) (1,861 ) 2,077 (2,717 ) Cost of repurchased stock (33,664 ) — — — (33,664 ) Total stockholders’ equity attributable to Altria 14,079 3,158 27,045 (30,203 ) 14,079 Noncontrolling interests — — 2 — 2 Total stockholders’ equity 14,079 3,158 27,047 (30,203 ) 14,081 Total Liabilities and Stockholders’ Equity $ 53,499 $ 10,316 $ 37,092 $ (41,674 ) $ 59,233 Condensed Consolidating Balance Sheets December 31, 2018 (in millions of dollars) Altria PM USA Non- Total Consolidated Assets Cash and cash equivalents $ 1,277 $ — $ 56 $ — $ 1,333 Receivables — 18 124 — 142 Inventories: Leaf tobacco — 561 379 — 940 Other raw materials — 123 63 — 186 Work in process — 2 645 — 647 Finished product — 128 430 — 558 — 814 1,517 — 2,331 Due from Altria and subsidiaries 46 3,828 1,194 (5,068 ) — Income taxes 100 94 — (27 ) 167 Other current assets 41 167 118 — 326 Total current assets 1,464 4,921 3,009 (5,095 ) 4,299 Property, plant and equipment, at cost — 2,928 2,022 — 4,950 Less accumulated depreciation — 2,111 901 — 3,012 — 817 1,121 — 1,938 Goodwill — — 5,196 — 5,196 Other intangible assets, net — 2 12,277 — 12,279 Investments in equity securities 17,696 — 12,800 — 30,496 Investment in consolidated subsidiaries 25,996 2,825 — (28,821 ) — Due from Altria and subsidiaries 4,790 — — (4,790 ) — Other assets 193 955 952 (670 ) 1,430 Total Assets $ 50,139 $ 9,520 $ 35,355 $ (39,376 ) $ 55,638 Condensed Consolidating Balance Sheets (Continued) December 31, 2018 (in millions of dollars) Altria PM USA Non- Total Consolidated Liabilities Short-term borrowings $ 12,704 $ — $ — $ — $ 12,704 Current portion of long-term debt 1,144 — — — 1,144 Accounts payable 1 91 307 — 399 Accrued liabilities: Marketing — 483 103 — 586 Settlement charges — 3,448 6 — 3,454 Other 295 524 611 (27 ) 1,403 Dividends payable 1,503 — — — 1,503 Due to Altria and subsidiaries 4,499 407 162 (5,068 ) — Total current liabilities 20,146 4,953 1,189 (5,095 ) 21,193 Long-term debt 11,898 — — — 11,898 Deferred income taxes 3,010 — 2,832 (670 ) 5,172 Accrued pension costs 187 — 357 — 544 Accrued postretirement health care costs — 1,072 677 — 1,749 Due to Altria and subsidiaries — — 4,790 (4,790 ) — Other liabilities 111 47 96 — 254 Total liabilities 35,352 6,072 9,941 (10,555 ) 40,810 Contingencies Redeemable noncontrolling interest — — 39 — 39 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,961 3,310 25,047 (28,357 ) 5,961 Earnings reinvested in the business 43,962 359 2,201 (2,560 ) 43,962 Accumulated other comprehensive losses (2,547 ) (221 ) (1,884 ) 2,105 (2,547 ) Cost of repurchased stock (33,524 ) — — — (33,524 ) Total stockholders’ equity attributable to Altria 14,787 3,448 25,373 (28,821 ) 14,787 Noncontrolling interests — — 2 — 2 Total stockholders’ equity 14,787 3,448 25,375 (28,821 ) 14,789 Total Liabilities and Stockholders’ Equity $ 50,139 $ 9,520 $ 35,355 $ (39,376 ) $ 55,638 For the Three Months Ended March 31, 2019 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 4,725 $ 913 $ (10 ) $ 5,628 Cost of sales — 1,340 248 (10 ) 1,578 Excise taxes on products — 1,185 54 — 1,239 Gross profit — 2,200 611 — 2,811 Marketing, administration and research costs 35 384 114 — 533 Asset impairment and exit costs 1 35 4 — 40 Operating (expense) income (36 ) 1,781 493 — 2,238 Interest and other debt expense (income), net 355 (25 ) 54 — 384 Net periodic benefit cost (income), excluding service cost 1 — (2 ) — (1 ) Earnings from equity investment in AB InBev (86 ) — — — (86 ) Loss on Cronos-related financial instruments — — 425 — 425 (Loss) earnings before income taxes and equity earnings of subsidiaries (306 ) 1,806 16 — 1,516 (Benefit) provision for income taxes (75 ) 459 11 — 395 Equity earnings of subsidiaries 1,351 95 — (1,446 ) — Net earnings 1,120 1,442 5 (1,446 ) 1,121 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria $ 1,120 $ 1,442 $ 4 $ (1,446 ) $ 1,120 Net earnings $ 1,120 $ 1,442 $ 5 $ (1,446 ) $ 1,121 Other comprehensive (losses) earnings, net of deferred income taxes (170 ) 5 23 (28 ) (170 ) Comprehensive earnings 950 1,447 28 (1,474 ) 951 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to Altria $ 950 $ 1,447 $ 27 $ (1,474 ) $ 950 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended March 31, 2018 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Net revenues $ — $ 5,214 $ 904 $ (10 ) $ 6,108 Cost of sales — 1,487 257 (10 ) 1,734 Excise taxes on products — 1,383 55 — 1,438 Gross profit — 2,344 592 — 2,936 Marketing, administration and research costs 38 449 131 — 618 Asset impairment and exit costs — — 2 — 2 Operating (expense) income (38 ) 1,895 459 — 2,316 Interest and other debt expense (income), net 122 (9 ) 53 — 166 Net periodic benefit cost (income), excluding service cost 1 (6 ) (2 ) — (7 ) Earnings from equity investment in AB InBev (342 ) — — — (342 ) Loss on AB InBev/SABMiller business combination 33 — — — 33 Earnings before income taxes and equity earnings of subsidiaries 148 1,910 408 — 2,466 (Benefit) provision for income taxes (13 ) 482 102 — 571 Equity earnings of subsidiaries 1,733 89 — (1,822 ) — Net earnings 1,894 1,517 306 (1,822 ) 1,895 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria $ 1,894 $ 1,517 $ 305 $ (1,822 ) $ 1,894 Net earnings $ 1,894 $ 1,517 $ 306 $ (1,822 ) $ 1,895 Other comprehensive (losses) earnings, net of deferred income taxes (30 ) 4 39 (43 ) (30 ) Comprehensive earnings 1,864 1,521 345 (1,865 ) 1,865 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to Altria $ 1,864 $ 1,521 $ 344 $ (1,865 ) $ 1,864 For the Three Months Ended March 31, 2019 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 1,642 $ 2,520 $ 166 $ (2,039 ) $ 2,289 Cash Used in Investing Activities Capital expenditures — (9 ) (29 ) — (38 ) Investment in Cronos — — (1,831 ) — (1,831 ) Investment in consolidated subsidiaries (1,947 ) — — 1,947 — Other, net (3 ) — (78 ) — (81 ) Net cash used in investing activities (1,950 ) (9 ) (1,938 ) 1,947 (1,950 ) Cash Provided by (Used in) Financing Activities Repayment of short-term borrowings (12,800 ) — — — (12,800 ) Long-term debt issued 16,265 — — — 16,265 Repurchases of common stock (151 ) — — — (151 ) Dividends paid on common stock (1,502 ) — — — (1,502 ) Changes in amounts due to/from Altria and subsidiaries 657 (771 ) 2,061 (1,947 ) — Cash dividends paid to parent — (1,737 ) (302 ) 2,039 — Other (120 ) — (9 ) — (129 ) Net cash provided by (used in) financing activities 2,349 (2,508 ) 1,750 92 1,683 Cash, cash equivalents and restricted cash (1) : Increase (decrease) 2,041 3 (22 ) — 2,022 Balance at beginning of period 1,277 100 56 — 1,433 Balance at end of period $ 3,318 $ 103 $ 34 $ — $ 3,455 (1) Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 12 . Contingencies . Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2018 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 648 $ 2,923 $ 189 $ (951 ) $ 2,809 Cash Provided by (Used in) Investing Activities Capital expenditures — (1 ) (33 ) — (34 ) Other — — (7 ) — (7 ) Net cash used in investing activities — (1 ) (40 ) — (41 ) Cash Provided by (Used in) Financing Activities Repurchases of common stock (513 ) — — — (513 ) Dividends paid on common stock (1,257 ) — — — (1,257 ) Changes in amounts due to/from Altria and subsidiaries 2,091 (2,439 ) 348 — — Cash dividends paid to parent — (446 ) (505 ) 951 — Other (20 ) — (3 ) — (23 ) Net cash provided by (used in) financing activities 301 (2,885 ) (160 ) 951 (1,793 ) Cash, cash equivalents and restricted cash (1) : Increase (decrease) 949 37 (11 ) — 975 Balance at beginning of period 1,203 62 49 — 1,314 Balance at end of period $ 2,152 $ 99 $ 38 $ — $ 2,289 (1) Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 12 . Contingencies |
New Accounting Guidance Not Yet
New Accounting Guidance Not Yet Adopted | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance Not Yet Adopted | New Accounting Guidance Not Yet Adopted: The following table provides a description of issued accounting guidance applicable to, but not yet adopted by, Altria: Standards Description Effective Date for Public Entity Effect on Financial Statements ASU Nos. 2016-13 and 2018-19 Measurement of Credit Losses on Financial Instruments (Topic 326) The guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets with a methodology that reflects the entity’s current estimate of all expected credit losses and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The adoption of this guidance is not expected to have a material impact on Altria’s consolidated financial statements. ASU No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40) The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. Altria is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | On January 1, 2019, Altria adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and all related ASU amendments (collectively “ASU No. 2016-02”), which requires entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Altria has elected to apply the guidance retrospectively at the beginning of the period of adoption. As a result, comparative periods prior to adoption will continue to be presented in accordance with prior lease guidance, including disclosures. The impact of the adoption was not material to Altria’s consolidated financial statements. As a result of the adoption, Altria and its subsidiaries, as lessees, recorded right-of-use assets and lease liabilities of $179 million at January 1, 2019 for its leases, which were all operating leases. There was no Standards Description Effective Date for Public Entity Effect on Financial Statements ASU Nos. 2016-13 and 2018-19 Measurement of Credit Losses on Financial Instruments (Topic 326) The guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets with a methodology that reflects the entity’s current estimate of all expected credit losses and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The adoption of this guidance is not expected to have a material impact on Altria’s consolidated financial statements. ASU No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40) The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. Altria is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Equity Method Investments | Altria reviews its investment in AB InBev for impairment by comparing the fair value of its investment to its carrying value. If the carrying value of Altria’s investment exceeds its fair value and the loss in value is other than temporary, the investment is considered impaired and impairment is recognized in the period identified. The factors used to make this determination include the duration and magnitude of the fair value decline, AB InBev’s financial condition and near-term prospects, and Altria’s intent and ability to hold its investment in AB InBev until recovery. The fair value of Altria’s equity investment in AB InBev is based on: (i) unadjusted quoted prices in active markets for AB InBev’s ordinary shares and was classified in Level 1 of the fair value hierarchy and (ii) observable inputs other than Level 1 prices, such as quoted prices for similar assets for the Restricted Shares, and was classified in Level 2 of the fair value hierarchy. Altria may, in certain instances, pledge or otherwise grant a security interest in all or part of its Restricted Shares. In the event the pledgee or security interest holder forecloses on the Restricted Shares, the relevant Restricted Shares will be automatically converted, one-for-one, into ordinary shares. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share. |
Equity Security Investments | Since the JUUL shares do not have a readily determinable fair value, Altria has elected to measure its investment in JUUL at its cost minus any impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Share Repurchase Activity | Altria’s share repurchase activity was as follows: For the Three Months Ended March 31, 2019 2018 (in millions, except per share data) Total number of shares repurchased 2.7 8.0 Aggregate cost of shares repurchased $ 151 $ 513 Average price per share of shares repurchased $ 56.34 $ 64.33 |
Asset Impairment, Exit and Im_2
Asset Impairment, Exit and Implmentation Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Pre-tax asset impairment, exit and implementation costs consisted of the following: For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018 Asset Impairment and Exit Costs Implementation Costs (1) Total Asset Impairment and Exit Costs Implementation Costs (2) Total (in millions) Smokeable products $ 36 $ 8 $ 44 $ — $ 1 $ 1 Smokeless products 8 1 9 2 — 2 All other (5 ) — (5 ) — — — General corporate 1 — 1 — — — Total 40 9 49 2 1 3 Plus amounts included in net periodic benefit income, excluding service cost (3) 12 — 12 — — — Total $ 52 $ 9 $ 61 $ 2 $ 1 $ 3 (1) Included in marketing, administration and research costs in Altria’s condensed consolidated statement of earnings. (2) Included in cost of sales in Altria’s condensed consolidated statements of earnings. (3) Represents curtailment costs. See Note 6. Benefit Plans |
Schedule of Restructuring Reserve by Type of Cost | The movement in the restructuring liabilities, substantially all of which are severance liabilities, was as follows: For the Three Months Ended March 31, 2019 (in millions) Balances at December 31, 2018 $ 155 Charges 40 Cash spent (35 ) Balances at March 31, 2019 $ 160 |
Investments in Equity Securit_2
Investments in Equity Securities Investments in Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investment | Altria’s investments consisted of the following: Carrying Amount March 31, 2019 December 31, 2018 (in millions) AB InBev $ 17,476 $ 17,696 JUUL 12,800 12,800 Cronos (1) 1,739 — Total $ 32,015 $ 30,496 ( 1) Includes investment in Acquired Common Shares ( $397 million ), the Cronos warrant ( $949 million ) and the Fixed-price Preemptive Rights ( $393 million |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurement Inputs and Valuation Techniques | The fair values of the Fixed-price Preemptive Rights and warrant are estimated using Black-Scholes option-pricing models, adjusted for unobservable inputs, including probability factors and weighting of expected life, volatility levels and risk-free interest rates (which are classified in Level 3 of the fair value hierarchy) based on the following assumptions at: March 31, 2019 March 8, 2019 March 31, 2019 March 8, 2019 Fixed-price Preemptive Rights Warrant Expected life (1) 2.27 years 2.32 years 3.94 years 4 years Expected volatility (2) 92.86% 93.02% 92.86% 93.02% Risk-free interest rate (3)(4) 1.54% 1.61% 1.52% 1.67% Expected dividend yield (5) —% —% —% —% (1) Based on the weighted-average remaining expected life of the Fixed-price Preemptive Rights (with a range from 1.75 years to 7 years) and the March 8, 2023 expiration date of the warrant. (2) Based on a blend of historical volatility levels of the underlying equity security and peer companies. (3) Based on the implied yield currently available on Canadian Treasury zero coupon issues weighted for the remaining expected life of the Fixed-price Preemptive Rights. (4) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the warrant. (5) Based on Cronos’s expected dividend payments |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the beginning and ending balance of the Fixed-price Preemptive Rights and warrant, which are classified in Level 3 of the fair value hierarchy: (in millions) Balance at December 31, 2018 $ — Investment in Fixed-price Preemptive Rights and warrant 1,736 Pre-tax losses recognized in net earnings (394 ) Balance at March 31, 2019 $ 1,342 |
Schedule of Derivative Liabilities at Fair Value | The fair values of Altria’s derivative financial instruments on a gross basis included on the condensed consolidated balance sheets were as follows: Fair Value of Assets Fair Value of Liabilities Balance Sheet Classification March 31, 2019 December 31, 2018 Balance Sheet Classification March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: (in millions) Foreign currency contracts Other current assets $ 48 $ 37 Other accrued liabilities $ — $ — Foreign currency contracts Other assets 15 4 Other liabilities — 4 Total $ 63 $ 41 $ — $ 4 Derivatives not designated as hedging instruments: Cronos warrant Investments in equity securities $ 949 $ — Fixed-price Preemptive Rights Investments in equity securities 393 — Total $ 1,342 $ — Total derivatives $ 1,405 $ 41 $ — $ 4 |
Pre-tax Effects of Net Investment Hedges on Accumulated Other Comprehensive Losses | The pre-tax effects of Altria’s net investment hedges on accumulated other comprehensive losses and the condensed consolidated statements of earnings were as follows: Gain (Loss) Recognized in Accumulated Other Comprehensive Losses Gain Recognized in Net Earnings (1) For the Three Months Ended March 31, 2019 2018 2019 2018 (in millions) Foreign currency contracts $ 23 $ (33 ) $ 9 $ 8 Foreign currency denominated debt 33 — — — Total $ 56 $ (33 ) $ 9 $ 8 (1) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit (Income) Cost | Net periodic benefit (income) cost consisted of the following: For the Three Months Ended March 31, Pension Postretirement 2019 2018 2019 2018 (in millions) Service cost $ 17 $ 21 $ 4 $ 4 Interest cost 77 68 20 19 Expected return on plan assets (145 ) (146 ) (4 ) (5 ) Amortization: Net loss 42 57 3 9 Prior service cost (credit) 1 1 (7 ) (10 ) Curtailment 7 — 5 — Net periodic benefit (income) cost $ (1 ) $ 1 $ 21 $ 17 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Three Months Ended March 31, 2019 2018 (in millions) Net earnings attributable to Altria $ 1,120 $ 1,894 Less: Distributed and undistributed earnings attributable to share-based awards (2 ) (2 ) Earnings for basic and diluted EPS $ 1,118 $ 1,892 Weighted-average shares for basic and diluted EPS 1,874 1,899 |
Other Comprehensive Earnings__2
Other Comprehensive Earnings/Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: For the Three Months Ended March 31, 2019 Benefit Plans AB InBev Currency Translation Adjustments and Other Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2018 $ (2,168 ) $ (374 ) $ (5 ) $ (2,547 ) Other comprehensive losses before reclassifications — (238 ) — (238 ) Deferred income taxes — 49 — 49 Other comprehensive losses before reclassifications, net of deferred income taxes — (189 ) — (189 ) Amounts reclassified to net earnings 39 (12 ) — 27 Deferred income taxes (10 ) 2 — (8 ) Amounts reclassified to net earnings, net of deferred income taxes 29 (10 ) — 19 Other comprehensive earnings (losses), net of deferred income taxes 29 (199 ) (1 ) — (170 ) Balances, March 31, 2019 $ (2,139 ) $ (573 ) $ (5 ) $ (2,717 ) For the Three Months Ended March 31, 2018 Benefit Plans AB InBev Currency Translation Adjustments and Other Accumulated Other Comprehensive Losses (in millions) Balances, December 31, 2017 $ (1,839 ) $ (54 ) $ (4 ) $ (1,897 ) Other comprehensive losses before reclassifications — (81 ) — (81 ) Deferred income taxes — 16 — 16 Other comprehensive losses before reclassifications, net of deferred income taxes — (65 ) — (65 ) Amounts reclassified to net earnings 61 (13 ) — 48 Deferred income taxes (16 ) 3 — (13 ) Amounts reclassified to net earnings, net of deferred income taxes 45 (10 ) — 35 Other comprehensive earnings (losses), net of deferred income taxes 45 (75 ) (1 ) — (30 ) Balances, March 31, 2018 $ (1,794 ) $ (129 ) $ (4 ) $ (1,927 ) (1) Primarily reflects Altria’s share of AB InBev’s currency translation adjustments and the impact of Altria’s designated net investment hedges. For further discussion of designated net investment hedges, see Note 5. |
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 Three Months Ended March 31, 2019 2018 (in millions) Benefit Plans: (1) Net loss $ 49 $ 70 Prior service cost/credit (10 ) (9 ) 39 61 AB InBev (2) (12 ) (13 ) Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 27 $ 48 (1) Amounts are included in net defined benefit plan costs. For further details, see Note 6 . Benefit Plans. (2) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment data were as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Net revenues: Smokeable products $ 4,935 $ 5,414 Smokeless products 540 525 Wine 151 142 All other 2 27 Net revenues $ 5,628 $ 6,108 Earnings before income taxes: Operating companies income (loss): Smokeable products $ 1,932 $ 2,038 Smokeless products 358 338 Wine 15 17 All other (12 ) (26 ) Amortization of intangibles (8 ) (5 ) General corporate expenses (46 ) (46 ) Corporate asset impairment and exit costs (1 ) — Operating income 2,238 2,316 Interest and other debt expense, net (384 ) (166 ) Net periodic benefit income, excluding service cost 1 7 Earnings from equity investment in AB InBev 86 342 Loss on Cronos-related financial instruments (425 ) — Loss on AB InBev/SABMiller business combination — (33 ) Earnings before income taxes $ 1,516 $ 2,466 |
Schedule of Pre-tax Tobacco and Health Litigation Items | Tobacco and Health Litigation Items - Pre-tax charges related to certain tobacco and health litigation items were recorded in Altria’s condensed consolidated statements of earnings as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Smokeable products segment $ 15 $ 24 Interest and other debt expense, net 2 4 Total $ 17 $ 28 |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contingencies | Currently Pending Engle Cases with Accrued Liabilities (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (All Defendants) Punitive Damages (PM USA) Appeal Status Accrual (1) Berger ( Cote ) September 2014 PM USA Federal Court - Middle District of Florida $6 million $21 million The Eleventh Circuit Court of Appeals reinstated the punitive and compensatory damages awards and remanded the case to the district court. PM USA’s challenge to the punitive damages award in the district court is pending. $6 million accrual in the fourth quarter of 2018 (1) Accrual amounts include interest and associated costs, if applicable. For cases with multiple defendants, if any, accrual amounts reflect the portion of compensatory damages PM USA believes it will have to pay if the case is ultimately decided in plaintiff’s favor after taking into account any portion potentially payable by the other defendant(s). Other Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Appeal Status McCall March 2019 PM USA Broward <$1 million (<$1 million PM USA) <$1 million New trial ordered on punitive damages. Neff March 2019 PM USA and R.J. Reynolds Broward $4 million $2 million Post-trial motions pending. Frogel March 2019 PM USA Palm Beach <$1 million (<$1 million PM USA) $0 Post-trial motions pending. Mahfuz February 2019 PM USA and R.J. Reynolds Broward $12 million $10 million Post-trial motions pending. Holliman February 2019 PM USA Miami-Dade $3 million $0 Post-trial motions pending. Other Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Appeal Status Chadwell September 2018 PM USA Miami-Dade $2 million $0 Appeals by plaintiff and defendant to Third District Court of Appeal pending. Kaplan July 2018 PM USA and R.J. Reynolds Broward $2 million $2 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Landi June 2018 PM USA and R.J. Reynolds Broward $8 million $5 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Theis May 2018 PM USA and R.J. Reynolds Sarasota $7 million $10 million Defendants’ appeal to Second District Court of Appeal pending. Freeman March 2018 PM USA Alachua $4 million $0 Defendant’s appeal to First District Court of Appeal pending. Gloger February 2018 PM USA and R.J. Reynolds Miami-Dade $8 million $5 million Third District Court of Appeal reversed judgment and ordered a new trial; plaintiff’s motion for rehearing pending. Bryant December 2017 PM USA Escambia <$1 million <$1 million Defendant’s appeal to First District Court of Appeal pending. R. Douglas November 2017 PM USA Duval <$1 million $0 Awaiting entry of final judgment by the trial court. Wallace October 2017 PM USA and R.J. Reynolds Brevard $12 million $16 million Fifth District Court of Appeal affirmed trial court judgment. Sommers April 2017 PM USA Miami-Dade $1 million $0 New trial ordered on punitive damages; appeals by plaintiff and defendant to Third District Court of Appeal pending. Santoro March 2017 PM USA, R.J. Reynolds and Liggett Group Broward $2 million $0 Trial court set aside punitive damages award; appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Cooper September 2015 PM USA and R.J. Reynolds Broward $5 million $0 Fourth District Court of Appeal affirmed judgment and granted a new trial on punitive damages. McCoy July 2015 PM USA, Broward $2 million $3 million Fourth District Court of Appeal reversed judgment and ordered a new trial; plaintiff requested review by the Florida Supreme Court; case currently stayed. D. Brown January 2015 PM USA Federal Court - Middle District of Florida $8 million $9 million Appeal to U.S. Court of Appeals for the Eleventh Circuit pending. Kerrivan October 2014 PM USA and R.J. Reynolds Federal Court - Middle District of Florida $16 million $16 million Appeals by plaintiff and defendants to U.S. Court of Appeals for the Eleventh Circuit pending. Harris July 2014 PM USA, Federal Court - Middle District of Florida $2 million (<$ 1 million PM USA) $0 Awaiting entry of amended final judgment applying comparative fault. (1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount (if any) Payment Date J. Brown February 2017 PM USA and R.J. Reynolds Pinellas First quarter of 2019 $4 million April 2019 L. Martin May 2017 PM USA Miami-Dade First quarter of 2019 $2 million April 2019 Danielson November 2015 PM USA Escambia First quarter of 2019 $3 million March 2019 S. Martin November 2016 PM USA and Broward First quarter of 2019 $5 million March 2019 Searcy April 2013 PM USA and Federal Court - Middle District of Florida Third quarter of 2018 $2 million March 2019 Boatright November 2014 PM USA and Liggett Group Polk Second quarter of 2018 $42 million March 2019 M. Brown May 2015 PM USA Duval Second quarter of 2018 $8 million March 2019 Jordan August 2015 PM USA Duval Second quarter of 2018 $11 million March 2019 Pardue December 2016 PM USA and Alachua Second and Third quarters of 2018 $11 million March 2019 McKeever February 2015 PM USA Broward Fourth quarter of 2017 $21 million March 2019 Boulter December 2018 PM USA and Lee Fourth quarter of 2018 <$1 million January 2019 Simon September 2018 PM USA and Broward Fourth quarter of 2018 <$1 million October 2018 Perrotto November 2014 PM USA, Palm Beach Third quarter of 2018 $1 million September 2018 Gore March 2015 PM USA and Indian River First quarter of 2018 $1 million September 2018 Putney April 2010 PM USA, Broward Third quarter of 2018 $5 million September 2018 Sermons July 2016 PM USA and Duval Third quarter of 2018 <$1 million August 2018 Tognoli November 2015 PM USA Broward Fourth quarter of 2017 $1 million May 2018 Howles November 2016 PM USA and Broward First quarter of 2018 $6 million May 2018 Purdo April 2016 PM USA and Palm Beach First quarter of 2018 $10 million May 2018 Griffin June 2014 PM USA Federal Court - Middle District of Florida Second quarter of 2017 $1 million May 2018 Ledoux December 2015 PM USA and Miami-Dade Fourth quarter of 2017 $20 million May 2018 Burkhart May 2014 PM USA, Federal Court - Middle District of Florida Second quarter of 2018 $2 million May 2018 Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount (if any) Payment Date Barbose November 2015 PM USA and Pasco Fourth quarter of 2017 $12 million May 2018 Allen November 2014 PM USA and Duval First quarter of 2018 $10 million May 2018 Ahrens February 2016 PM USA and Pinellas Fourth quarter of 2017 $7 million May 2018 April 22, 2019 April 23, 2018 April 27, 2017 Individual Smoking and Health Cases (1) 98 102 80 Smoking and Health Class Actions and Aggregated Claims Litigation (2) 2 4 5 Health Care Cost Recovery Actions (3) 1 1 1 “Lights/Ultra Lights” Class Actions 2 3 5 (1) Includes 29 cases filed in Massachusetts and 38 non- Engle cases filed in Florida. 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 (these Engle progeny cases are discussed below in Smoking and Health Litigation - Engle Class Action ). Also does not include 1,490 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 allowed class members to file individual lawsuits seeking compensatory damages, but prohibited them from seeking punitive damages. In March 2018, 923 of these cases were voluntarily dismissed without prejudice. (2) The 2017 pending cases include as one case the 30 civil actions that were to be tried in six consolidated trials in West Virginia ( In re: Tobacco Litigation ). PM USA was a defendant in nine of the 30 cases. The parties resolved these cases for an immaterial amount and in the second quarter of 2018, the court dismissed all 30 cases. (3) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit For the Three Months Ended March 31, 2019 2018 (in millions) Accrued liability for tobacco and health litigation items at beginning of period (1) $ 112 $ 106 Pre-tax charges for: Tobacco and health litigation 15 24 Related interest costs 2 4 Payments (1) (109 ) (23 ) Accrued liability for tobacco and health litigation items at end of period (1) $ 20 $ 111 (1) Includes amounts related to the costs of implementing the corrective communications remedy related to the Federal Government’s Lawsuit discussed below. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheets March 31, 2019 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Assets Cash and cash equivalents $ 3,318 $ — $ 34 $ — $ 3,352 Receivables — 19 139 — 158 Inventories: Leaf tobacco — 544 386 — 930 Other raw materials — 122 68 — 190 Work in process — 10 641 — 651 Finished product — 159 426 — 585 — 835 1,521 — 2,356 Due from Altria and subsidiaries 82 4,574 1,166 (5,822 ) — Income taxes 189 3 — (189 ) 3 Other current assets 62 225 106 — 393 Total current assets 3,651 5,656 2,966 (6,011 ) 6,262 Property, plant and equipment, at cost — 2,931 1,986 — 4,917 Less accumulated depreciation — 2,128 867 — 2,995 — 803 1,119 — 1,922 Goodwill — — 5,196 — 5,196 Other intangible assets, net — 2 12,325 — 12,327 Investments in equity securities 17,476 — 14,539 — 32,015 Investment in consolidated subsidiaries 27,378 2,825 — (30,203 ) — Due from Altria and subsidiaries 4,790 — — (4,790 ) — Other assets 204 1,030 947 (670 ) 1,511 Total Assets $ 53,499 $ 10,316 $ 37,092 $ (41,674 ) $ 59,233 Condensed Consolidating Balance Sheets (Continued) March 31, 2019 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Liabilities Current portion of long-term debt $ 2,144 $ — $ — $ — $ 2,144 Accounts payable 1 66 138 — 205 Accrued liabilities: Marketing — 418 72 — 490 Settlement charges — 4,359 8 — 4,367 Other 311 715 575 (189 ) 1,412 Dividends payable 1,501 — — — 1,501 Due to Altria and subsidiaries 5,192 433 197 (5,822 ) — Total current liabilities 9,149 5,991 990 (6,011 ) 10,119 Long-term debt 27,024 — — — 27,024 Deferred income taxes 2,992 — 3,031 (670 ) 5,353 Accrued pension costs 188 — 309 — 497 Accrued postretirement health care costs — 1,074 690 — 1,764 Due to Altria and subsidiaries — — 4,790 (4,790 ) — Other liabilities 67 93 197 — 357 Total liabilities 39,420 7,158 10,007 (11,471 ) 45,114 Contingencies Redeemable noncontrolling interest — — 38 — 38 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,943 3,310 26,994 (30,304 ) 5,943 Earnings reinvested in the business 43,582 64 1,903 (1,967 ) 43,582 Accumulated other comprehensive losses (2,717 ) (216 ) (1,861 ) 2,077 (2,717 ) Cost of repurchased stock (33,664 ) — — — (33,664 ) Total stockholders’ equity attributable to Altria 14,079 3,158 27,045 (30,203 ) 14,079 Noncontrolling interests — — 2 — 2 Total stockholders’ equity 14,079 3,158 27,047 (30,203 ) 14,081 Total Liabilities and Stockholders’ Equity $ 53,499 $ 10,316 $ 37,092 $ (41,674 ) $ 59,233 Condensed Consolidating Balance Sheets December 31, 2018 (in millions of dollars) Altria PM USA Non- Total Consolidated Assets Cash and cash equivalents $ 1,277 $ — $ 56 $ — $ 1,333 Receivables — 18 124 — 142 Inventories: Leaf tobacco — 561 379 — 940 Other raw materials — 123 63 — 186 Work in process — 2 645 — 647 Finished product — 128 430 — 558 — 814 1,517 — 2,331 Due from Altria and subsidiaries 46 3,828 1,194 (5,068 ) — Income taxes 100 94 — (27 ) 167 Other current assets 41 167 118 — 326 Total current assets 1,464 4,921 3,009 (5,095 ) 4,299 Property, plant and equipment, at cost — 2,928 2,022 — 4,950 Less accumulated depreciation — 2,111 901 — 3,012 — 817 1,121 — 1,938 Goodwill — — 5,196 — 5,196 Other intangible assets, net — 2 12,277 — 12,279 Investments in equity securities 17,696 — 12,800 — 30,496 Investment in consolidated subsidiaries 25,996 2,825 — (28,821 ) — Due from Altria and subsidiaries 4,790 — — (4,790 ) — Other assets 193 955 952 (670 ) 1,430 Total Assets $ 50,139 $ 9,520 $ 35,355 $ (39,376 ) $ 55,638 Condensed Consolidating Balance Sheets (Continued) December 31, 2018 (in millions of dollars) Altria PM USA Non- Total Consolidated Liabilities Short-term borrowings $ 12,704 $ — $ — $ — $ 12,704 Current portion of long-term debt 1,144 — — — 1,144 Accounts payable 1 91 307 — 399 Accrued liabilities: Marketing — 483 103 — 586 Settlement charges — 3,448 6 — 3,454 Other 295 524 611 (27 ) 1,403 Dividends payable 1,503 — — — 1,503 Due to Altria and subsidiaries 4,499 407 162 (5,068 ) — Total current liabilities 20,146 4,953 1,189 (5,095 ) 21,193 Long-term debt 11,898 — — — 11,898 Deferred income taxes 3,010 — 2,832 (670 ) 5,172 Accrued pension costs 187 — 357 — 544 Accrued postretirement health care costs — 1,072 677 — 1,749 Due to Altria and subsidiaries — — 4,790 (4,790 ) — Other liabilities 111 47 96 — 254 Total liabilities 35,352 6,072 9,941 (10,555 ) 40,810 Contingencies Redeemable noncontrolling interest — — 39 — 39 Stockholders’ Equity Common stock 935 — 9 (9 ) 935 Additional paid-in capital 5,961 3,310 25,047 (28,357 ) 5,961 Earnings reinvested in the business 43,962 359 2,201 (2,560 ) 43,962 Accumulated other comprehensive losses (2,547 ) (221 ) (1,884 ) 2,105 (2,547 ) Cost of repurchased stock (33,524 ) — — — (33,524 ) Total stockholders’ equity attributable to Altria 14,787 3,448 25,373 (28,821 ) 14,787 Noncontrolling interests — — 2 — 2 Total stockholders’ equity 14,787 3,448 25,375 (28,821 ) 14,789 Total Liabilities and Stockholders’ Equity $ 50,139 $ 9,520 $ 35,355 $ (39,376 ) $ 55,638 |
Condensed Consolidating Statements of Earnings and Comprehensive Earnings | Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended March 31, 2019 (in millions of dollars) Altria PM USA Non- Total Consolidated Net revenues $ — $ 4,725 $ 913 $ (10 ) $ 5,628 Cost of sales — 1,340 248 (10 ) 1,578 Excise taxes on products — 1,185 54 — 1,239 Gross profit — 2,200 611 — 2,811 Marketing, administration and research costs 35 384 114 — 533 Asset impairment and exit costs 1 35 4 — 40 Operating (expense) income (36 ) 1,781 493 — 2,238 Interest and other debt expense (income), net 355 (25 ) 54 — 384 Net periodic benefit cost (income), excluding service cost 1 — (2 ) — (1 ) Earnings from equity investment in AB InBev (86 ) — — — (86 ) Loss on Cronos-related financial instruments — — 425 — 425 (Loss) earnings before income taxes and equity earnings of subsidiaries (306 ) 1,806 16 — 1,516 (Benefit) provision for income taxes (75 ) 459 11 — 395 Equity earnings of subsidiaries 1,351 95 — (1,446 ) — Net earnings 1,120 1,442 5 (1,446 ) 1,121 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria $ 1,120 $ 1,442 $ 4 $ (1,446 ) $ 1,120 Net earnings $ 1,120 $ 1,442 $ 5 $ (1,446 ) $ 1,121 Other comprehensive (losses) earnings, net of deferred income taxes (170 ) 5 23 (28 ) (170 ) Comprehensive earnings 950 1,447 28 (1,474 ) 951 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to Altria $ 950 $ 1,447 $ 27 $ (1,474 ) $ 950 Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended March 31, 2018 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Net revenues $ — $ 5,214 $ 904 $ (10 ) $ 6,108 Cost of sales — 1,487 257 (10 ) 1,734 Excise taxes on products — 1,383 55 — 1,438 Gross profit — 2,344 592 — 2,936 Marketing, administration and research costs 38 449 131 — 618 Asset impairment and exit costs — — 2 — 2 Operating (expense) income (38 ) 1,895 459 — 2,316 Interest and other debt expense (income), net 122 (9 ) 53 — 166 Net periodic benefit cost (income), excluding service cost 1 (6 ) (2 ) — (7 ) Earnings from equity investment in AB InBev (342 ) — — — (342 ) Loss on AB InBev/SABMiller business combination 33 — — — 33 Earnings before income taxes and equity earnings of subsidiaries 148 1,910 408 — 2,466 (Benefit) provision for income taxes (13 ) 482 102 — 571 Equity earnings of subsidiaries 1,733 89 — (1,822 ) — Net earnings 1,894 1,517 306 (1,822 ) 1,895 Net earnings attributable to noncontrolling interests — — (1 ) — (1 ) Net earnings attributable to Altria $ 1,894 $ 1,517 $ 305 $ (1,822 ) $ 1,894 Net earnings $ 1,894 $ 1,517 $ 306 $ (1,822 ) $ 1,895 Other comprehensive (losses) earnings, net of deferred income taxes (30 ) 4 39 (43 ) (30 ) Comprehensive earnings 1,864 1,521 345 (1,865 ) 1,865 Comprehensive earnings attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive earnings attributable to Altria $ 1,864 $ 1,521 $ 344 $ (1,865 ) $ 1,864 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2019 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 1,642 $ 2,520 $ 166 $ (2,039 ) $ 2,289 Cash Used in Investing Activities Capital expenditures — (9 ) (29 ) — (38 ) Investment in Cronos — — (1,831 ) — (1,831 ) Investment in consolidated subsidiaries (1,947 ) — — 1,947 — Other, net (3 ) — (78 ) — (81 ) Net cash used in investing activities (1,950 ) (9 ) (1,938 ) 1,947 (1,950 ) Cash Provided by (Used in) Financing Activities Repayment of short-term borrowings (12,800 ) — — — (12,800 ) Long-term debt issued 16,265 — — — 16,265 Repurchases of common stock (151 ) — — — (151 ) Dividends paid on common stock (1,502 ) — — — (1,502 ) Changes in amounts due to/from Altria and subsidiaries 657 (771 ) 2,061 (1,947 ) — Cash dividends paid to parent — (1,737 ) (302 ) 2,039 — Other (120 ) — (9 ) — (129 ) Net cash provided by (used in) financing activities 2,349 (2,508 ) 1,750 92 1,683 Cash, cash equivalents and restricted cash (1) : Increase (decrease) 2,041 3 (22 ) — 2,022 Balance at beginning of period 1,277 100 56 — 1,433 Balance at end of period $ 3,318 $ 103 $ 34 $ — $ 3,455 (1) Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 12 . Contingencies . Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2018 (in millions of dollars) Altria PM USA Non- Guarantor Subsidiaries Total Consolidating Adjustments Consolidated Cash Provided by Operating Activities Net cash provided by operating activities $ 648 $ 2,923 $ 189 $ (951 ) $ 2,809 Cash Provided by (Used in) Investing Activities Capital expenditures — (1 ) (33 ) — (34 ) Other — — (7 ) — (7 ) Net cash used in investing activities — (1 ) (40 ) — (41 ) Cash Provided by (Used in) Financing Activities Repurchases of common stock (513 ) — — — (513 ) Dividends paid on common stock (1,257 ) — — — (1,257 ) Changes in amounts due to/from Altria and subsidiaries 2,091 (2,439 ) 348 — — Cash dividends paid to parent — (446 ) (505 ) 951 — Other (20 ) — (3 ) — (23 ) Net cash provided by (used in) financing activities 301 (2,885 ) (160 ) 951 (1,793 ) Cash, cash equivalents and restricted cash (1) : Increase (decrease) 949 37 (11 ) — 975 Balance at beginning of period 1,203 62 49 — 1,314 Balance at end of period $ 2,152 $ 99 $ 38 $ — $ 2,289 (1) Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 12 . Contingencies |
New Accounting Guidance Not Y_2
New Accounting Guidance Not Yet Adopted (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Guidance Not Yet Adopted | The following table provides a description of issued accounting guidance applicable to, but not yet adopted by, Altria: Standards Description Effective Date for Public Entity Effect on Financial Statements ASU Nos. 2016-13 and 2018-19 Measurement of Credit Losses on Financial Instruments (Topic 326) The guidance replaces the current incurred loss impairment methodology for recognizing credit losses for financial assets with a methodology that reflects the entity’s current estimate of all expected credit losses and requires consideration of a broader range of reasonable and supportable information for estimating credit losses. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The adoption of this guidance is not expected to have a material impact on Altria’s consolidated financial statements. ASU No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40) The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. Altria is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Background and Basis of Prese_4
Background and Basis of Presentation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 31 Months Ended | |||||||
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 31, 2018 | Mar. 08, 2019 | Jan. 01, 2019 | May 31, 2018 | Jul. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Income (loss) from equity method investments | $ 86,000,000 | $ 342,000,000 | ||||||||
Repurchase of common stock (shares) | 2.7 | 8 | ||||||||
Average price of repurchased shares, per share (usd per share) | $ 56.34 | $ 64.33 | ||||||||
AB InBev [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Equity method investment, ownership percentage | 10.10% | |||||||||
JUUL [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Equity securities Fv Ni, ownership percentage | 35.00% | 35.00% | ||||||||
Equity securities Fv-Ni, purchase price | $ 12,800,000,000 | |||||||||
Related party transaction, services agreement, term | 6 years | |||||||||
Cronos Group Inc. [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Equity method investment, ownership percentage | 45.00% | 45.00% | ||||||||
Income (loss) from equity method investments | $ 0 | |||||||||
July 2015 Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Planned share repurchase program | $ 4,000,000,000 | $ 3,000,000,000 | $ 1,000,000,000 | |||||||
Repurchase of common stock (shares) | 58.7 | |||||||||
Average price of repurchased shares, per share (usd per share) | $ 68.15 | |||||||||
January 2018 Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Planned share repurchase program | $ 1,000,000,000 | $ 2,000,000,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 195,000,000 | |||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Operating lease, liability | $ 179,000,000 | |||||||||
Operating lease, right-of-use asset | 179,000,000 | |||||||||
Cumulative effect | $ 0 |
Background and Basis of Prese_5
Background and Basis of Presentation (Share Repurchase Table) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Total number of shares repurchased (shares) | 2.7 | 8 |
Aggregate cost of shares repurchased | $ 151 | $ 513 |
Average price per share of shares repurchased (usd per share) | $ 56.34 | $ 64.33 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Allowance for sales discounts, goods | $ 0 | $ 0 |
Deferred revenue | $ 233,000,000 | 288,000,000 |
Expected period for satisfaction of performance obligation | P3D | |
Receivables | $ 158,000,000 | $ 142,000,000 |
Asset Impairment, Exit and Im_3
Asset Impairment, Exit and Implementation Costs (Pre-tax Asset Impairment, Exit and Implementation Costs ) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | $ 40 | $ 2 |
Plus amounts included in net periodic benefit income, excluding service cost, Asset Impairment and Exit Costs | 12 | 0 |
Total, Asset Impairment and Exit Costs | 52 | 2 |
Implementation Costs | 9 | 1 |
Plus amounts included in net period benefit income, excluding service cost, Implementation Costs | 0 | 0 |
Total, Implementation Costs | 9 | 1 |
Restructuring Charges | 49 | 3 |
Plus amounts included in net periodic benefit income, excluding service cost, Total | 12 | 0 |
Total restructuring | 61 | 3 |
Operating Segments [Member] | Smokeable Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 36 | 0 |
Implementation Costs | 8 | 1 |
Restructuring Charges | 44 | 1 |
Operating Segments [Member] | Smokeless Products [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 8 | 2 |
Implementation Costs | 1 | 0 |
Restructuring Charges | 9 | 2 |
Operating Segments [Member] | All Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | (5) | 0 |
Implementation Costs | 0 | 0 |
Restructuring Charges | (5) | 0 |
Corporate, Non-Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 1 | 0 |
Implementation Costs | 0 | 0 |
Restructuring Charges | $ 1 | $ 0 |
Asset Impairment, Exit and Im_4
Asset Impairment, Exit and Implementation Costs (Movement in Restructuring Liabilities) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning of period | $ 155 |
Charges | 40 |
Cash spent | (35) |
Restructuring reserve, end of period | $ 160 |
Asset Impairment, Exit and Im_5
Asset Impairment, Exit and Implementation Costs (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ 40,000,000 | ||
Restructuring charges | 49,000,000 | $ 3,000,000 | |
Payments for restructuring | 35,000,000 | ||
Cost Reduction Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | $ 210,000,000 | ||
Charges | 182,000,000 | ||
Restructuring charges | 121,000,000 | ||
Payments for restructuring | $ 0 | 22,000,000 | |
Employee Severance [Member] | Cost Reduction Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 180,000,000 | ||
Other Restructuring [Member] | Cost Reduction Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | $ 30,000,000 |
Investments in Equity Securit_3
Investments in Equity Securities (Summary of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Investments in equity securities | $ 32,015 | $ 30,496 |
Investments | 32,015 | 30,496 |
AB InBev [Member] | ||
Investment [Line Items] | ||
Investments in equity securities | 17,476 | 17,696 |
JUUL [Member] | ||
Investment [Line Items] | ||
Equity securities, Fv-Ni | 12,800 | 12,800 |
Cronos Group Inc. [Member] | ||
Investment [Line Items] | ||
Investments in equity securities | 1,739 | $ 0 |
Equity Contract, Warrant [Member] | ||
Investment [Line Items] | ||
Derivative asset, fair value, gross asset | 949 | |
Equity Contract, Preemptive Rights [Member] | ||
Investment [Line Items] | ||
Derivative asset, fair value, gross asset | 393 | |
Common Stock [Member] | Cronos Group Inc. [Member] | ||
Investment [Line Items] | ||
Investments in equity securities | $ 397 |
Investments in Equity Securit_4
Investments in Equity Securities (Investment in AB InBev Narrative) (Details) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Mar. 31, 2019€ / shares | Dec. 31, 2018€ / shares | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity securities | $ | $ 32,015 | $ 30,496 | ||
AB InBev [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Derivative instrument, number of shares hedged (in shares) | shares | 92.4 | |||
AB InBev [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of ordinary shares owned (in shares) | shares | 12 | |||
Equity method investment, ownership percentage | 10.10% | |||
Number of restricted shares owned (in shares) | shares | 185 | |||
Share price (in Euro per share) | € / shares | € 74.76 | € 57.70 | ||
Fair value of equity investment | $ | $ 16,600 | $ 13,100 | ||
Investments in equity securities | $ | $ 17,476 | $ 17,696 | ||
Difference between carrying amount and underlying equity, percentage | 5.00% | 26.00% |
Investments in Equity Securit_5
Investments in Equity Securities (Investment in JUUL Narrative) (Details) - JUUL [Member] - USD ($) $ in Billions | Dec. 20, 2018 | Dec. 31, 2018 | Mar. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity securities Fv-Ni | $ 12.8 | ||
Equity securities Fv Ni, ownership percentage | 35.00% | 35.00% | |
Equity securities, Fv-Ni, ownership percentage upon conversion | 35.00% | ||
Equity securities Fv-Ni, threshold For downward adjustment of board election | 30.00% | ||
Equity securities Fv-Ni, ineligible for sale or transfer, period | 6 years |
Investments in Equity Securit_6
Investments in Equity Securities (Investment in Cronos Narrative) (Details) $ / shares in Units, shares in Millions, $ in Billions | Mar. 08, 2019USD ($)shares | Mar. 08, 2019CAD ($) | Mar. 31, 2019USD ($)directorboard_membershares | Mar. 31, 2018USD ($) | Mar. 08, 2019$ / shares |
Investment [Line Items] | |||||
Payments to acquire equity method investments | $ 1,831,000,000 | ||||
Earnings/losses from equity method investments | $ 86,000,000 | $ 342,000,000 | |||
Cronos Group Inc. [Member] | |||||
Investment [Line Items] | |||||
Number of ordinary shares owned (approximately) (in shares) | shares | 149.8 | ||||
Ownership percentage (approximately) | 45.00% | 45.00% | |||
Equity method investments, purchase price | $ 1,800,000,000 | $ 2.4 | |||
Equity method investment, warrant exercised, ownership percentage (approximately) | 55.00% | 55.00% | |||
Payments to acquire equity method investments | $ 400,000,000 | ||||
Payments for deferred tax liability | 300,000,000 | ||||
Earnings/losses from equity method investments | $ 0 | ||||
Number of directors nominated | director | 4 | ||||
Number of members on the Board of Directors | board_member | 7 | ||||
Equity Contract, Preemptive Rights [Member] | Cronos Group Inc. [Member] | |||||
Investment [Line Items] | |||||
Equity method investment, shares purchased, (CAD per share) | $ / shares | $ 16.25 | ||||
Equity method investment, number of shares eligible for purchase (in shares) | shares | 40 | ||||
Payments for derivative instrument, investing activities | $ 500,000,000 | ||||
Equity Contract, Warrant [Member] | Cronos Group Inc. [Member] | |||||
Investment [Line Items] | |||||
Equity method investment, shares purchased, (CAD per share) | $ / shares | $ 19 | ||||
Equity method investment, number of shares eligible for purchase (in shares) | shares | 74 | ||||
Payments for derivative instrument, investing activities | $ 1,200,000,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Billions | Mar. 08, 2019USD ($) | Mar. 08, 2019CAD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 08, 2019CAD ($) | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||||||
Derivative, gain (loss) on derivative, net | $ (425,000,000) | $ 0 | ||||
Equity Contract, Preemptive Rights [Member] | ||||||
Derivative [Line Items] | ||||||
Unrealized gain (loss) on derivatives | (132,000,000) | |||||
Equity Contract, Warrant [Member] | ||||||
Derivative [Line Items] | ||||||
Unrealized gain (loss) on derivatives | (262,000,000) | |||||
Net Investment Hedging [Member] | Foreign currency contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 1,226,000,000 | $ 1,226,000,000 | ||||
Cronos Group Inc. [Member] | ||||||
Derivative [Line Items] | ||||||
Equity method investments, purchase price | $ 1,800,000,000 | $ 2.4 | ||||
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | $ 1,800,000,000 | $ 2.4 | ||||
Derivative, gain (loss) on derivative, net | (31,000,000) | |||||
Foreign Currency Denominated Debt [Member] | ||||||
Derivative [Line Items] | ||||||
Debt instrument, fair value disclosure | 4,851,000,000 | |||||
Long-term debt | $ 4,740,000,000 | $ 0 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Using Black-Scholes Option-Pricing Model) (Details) | Mar. 31, 2019year | Mar. 08, 2019year |
Expected Life [Member] | Equity Contract, Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 2.27 | 2 |
Expected Life [Member] | Equity Contract, Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 3.94 | 4 |
Expected Volatility [Member] | Equity Contract, Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.9286 | 0.9302 |
Expected Volatility [Member] | Equity Contract, Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.9286 | 0.9302 |
Risk Free Interest Rate [Member] | Equity Contract, Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.0154 | 0.0161 |
Risk Free Interest Rate [Member] | Equity Contract, Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.0152 | 0.0167 |
Expected Dividend Yield [Member] | Equity Contract, Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0 | 0 |
Expected Dividend Yield [Member] | Equity Contract, Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0 | 0 |
Minimum [Member] | Measurement Input, Weighted Average Expected Term [Member] | Equity Contract, Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 1.75 | |
Maximum [Member] | Measurement Input, Weighted Average Expected Term [Member] | Equity Contract, Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 7 |
Financial Instruments (Beginnin
Financial Instruments (Beginning and Ending Balances of Fixed-price Preemptive Rights and Warrants) (Details) - Fair Value, Inputs, Level 3 [Member] - Equity Contract [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at begging of period | $ 0 |
Investment in Fixed-price Preemptive Rights and warrant | 1,736 |
Pre-tax losses recognized in net earnings | (394) |
Balance at end of period | $ 1,342 |
Financial Instruments (Fair V_2
Financial Instruments (Fair Value Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Equity Contract, Warrant [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | $ 949 | |
Equity Contract, Preemptive Rights [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 393 | |
Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 1,405 | $ 41 |
Fair Value of Liabilities | 0 | 4 |
Net Investment Hedging [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 63 | 41 |
Fair Value of Liabilities | 0 | 4 |
Net Investment Hedging [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 48 | 37 |
Net Investment Hedging [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 15 | 4 |
Net Investment Hedging [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 0 | 0 |
Net Investment Hedging [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 0 | 4 |
Net Investment Hedging [Member] | Equity Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 1,342 | 0 |
Net Investment Hedging [Member] | Equity Contract, Warrant [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 949 | 0 |
Net Investment Hedging [Member] | Equity Contract, Preemptive Rights [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | $ 393 | $ 0 |
Financial Instruments (Effects
Financial Instruments (Effects of Net Investment Hedges on Accumulated Other Comprehensive Losses) (Details) - Net Investment Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses | $ 56 | $ (33) |
Gain Recognized in Net Earnings | 9 | 8 |
Foreign currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses | 23 | (33) |
Gain Recognized in Net Earnings | 9 | 8 |
Foreign Currency Denominated Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses | 33 | 0 |
Gain Recognized in Net Earnings | $ 0 | $ 0 |
Benefit Plans (Schedule Of Comp
Benefit Plans (Schedule Of Components Of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 17 | $ 21 |
Interest cost | 77 | 68 |
Expected return on plan assets | (145) | (146) |
Amortization: | ||
Net loss | 42 | 57 |
Prior service cost (credit) | 1 | 1 |
Curtailment | 7 | 0 |
Net periodic benefit (income) cost | (1) | 1 |
Postretirement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 4 |
Interest cost | 20 | 19 |
Expected return on plan assets | (4) | (5) |
Amortization: | ||
Net loss | 3 | 9 |
Prior service cost (credit) | (7) | (10) |
Curtailment | 5 | 0 |
Net periodic benefit (income) cost | $ 21 | $ 17 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Additional employer contributions | $ 3 |
Pension [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Anticipated additional employer contributions | 45 |
Postretirement [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Anticipated additional employer contributions | $ 60 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net earnings attributable to Altria | $ 1,120 | $ 1,894 |
Less: Distributed and undistributed earnings attributable to share-based awards | (2) | (2) |
Earnings for basic and diluted EPS | $ 1,118 | $ 1,892 |
Weighted-average shares for basic and diluted EPS (in shares) | 1,874 | 1,899 |
Other Comprehensive Earnings__3
Other Comprehensive Earnings/Losses (Changes in Each Component of Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 14,789 | $ 15,380 |
Other comprehensive losses, net of deferred income taxes | (170) | (30) |
Ending balance | 14,081 | 15,397 |
Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (2,168) | (1,839) |
Other comprehensive (losses) earnings before reclassifications | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other comprehensive (losses) earnings before reclassifications, net of deferred income taxes | 0 | 0 |
Amounts reclassified to net earnings | 39 | 61 |
Deferred income taxes | (10) | (16) |
Amounts reclassified to net earnings, net of deferred income taxes | 29 | 45 |
Other comprehensive losses, net of deferred income taxes | 29 | 45 |
Ending balance | (2,139) | (1,794) |
AB InBev [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (374) | (54) |
Other comprehensive (losses) earnings before reclassifications | (238) | (81) |
Deferred income taxes | 49 | 16 |
Other comprehensive (losses) earnings before reclassifications, net of deferred income taxes | (189) | (65) |
Amounts reclassified to net earnings | (12) | (13) |
Deferred income taxes | 2 | 3 |
Amounts reclassified to net earnings, net of deferred income taxes | (10) | (10) |
Other comprehensive losses, net of deferred income taxes | (199) | (75) |
Ending balance | (573) | (129) |
Currency Translation Adjustments and Other [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (5) | (4) |
Other comprehensive (losses) earnings before reclassifications | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other comprehensive (losses) earnings before reclassifications, net of deferred income taxes | 0 | 0 |
Amounts reclassified to net earnings | 0 | 0 |
Deferred income taxes | 0 | 0 |
Amounts reclassified to net earnings, net of deferred income taxes | 0 | 0 |
Other comprehensive losses, net of deferred income taxes | 0 | 0 |
Ending balance | (5) | (4) |
Accumulated Other Comprehensive Losses [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (2,547) | (1,897) |
Other comprehensive (losses) earnings before reclassifications | (238) | (81) |
Deferred income taxes | 49 | 16 |
Other comprehensive (losses) earnings before reclassifications, net of deferred income taxes | (189) | (65) |
Amounts reclassified to net earnings | 27 | 48 |
Deferred income taxes | (8) | (13) |
Amounts reclassified to net earnings, net of deferred income taxes | 19 | 35 |
Other comprehensive losses, net of deferred income taxes | (170) | (30) |
Ending balance | $ (2,717) | $ (1,927) |
Other Comprehensive Earnings__4
Other Comprehensive Earnings/Losses (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net periodic benefit income, excluding service cost | $ (1) | $ (7) |
AB InBev | (86) | (342) |
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings | (1,121) | (1,895) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
AB InBev | (12) | (13) |
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings | 27 | 48 |
Net loss [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net periodic benefit income, excluding service cost | 49 | 70 |
Prior service cost/credit [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net periodic benefit income, excluding service cost | (10) | (9) |
Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net periodic benefit income, excluding service cost | $ 39 | $ 61 |
Segment Reporting (Segment Data
Segment Reporting (Segment Data Schedule) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 5,628 | $ 6,108 |
Operating income | 2,238 | 2,316 |
Corporate asset impairment and exit costs | 40 | 2 |
Interest and other debt expense, net | (384) | (166) |
Net periodic benefit income, excluding service cost | 1 | 7 |
Earnings from equity investment in AB InBev | 86 | 342 |
Loss on Cronos-related financial instruments | (425) | 0 |
Loss on AB InBev/SABMiller business combination | 0 | (33) |
(Loss) earnings before income taxes and equity earnings of subsidiaries | 1,516 | 2,466 |
Smokeable Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 4,935 | 5,414 |
Smokeless Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 540 | 525 |
Wine [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 151 | 142 |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 2 | 27 |
Operating Segments [Member] | Smokeable Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 1,932 | 2,038 |
Corporate asset impairment and exit costs | 36 | 0 |
Operating Segments [Member] | Smokeless Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 358 | 338 |
Corporate asset impairment and exit costs | 8 | 2 |
Operating Segments [Member] | Wine [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 15 | 17 |
Operating Segments [Member] | All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | (12) | (26) |
Corporate asset impairment and exit costs | (5) | 0 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Amortization of intangibles | (8) | (5) |
General corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
General corporate expenses | (46) | (46) |
Corporate asset impairment and exit costs | $ 1 | $ 0 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Tobacco and Health Litigation Items) (Details) - PM USA [Member] - Tobacco and Health Litigation Cases [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | ||
Provision related to litigation recorded | $ 17 | $ 28 |
Operating Income (Loss) [Member] | Operating Segments [Member] | Smokeable Products [Member] | ||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | ||
Provision related to litigation recorded | 15 | 24 |
Interest And Other Debt Expense, Net [Member] | Segment Reconciling Items [Member] | ||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | ||
Provision related to litigation recorded | $ 2 | $ 4 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
NPM Adjustment to Cost Of Sales [Member] | Smokeable Products [Member] | Operating Income (Loss) [Member] | PM USA [Member] | NPM [Member] | |
Segment Reporting Information [Line Items] | |
Gain (loss) related to litigation settlement | $ 68 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 3 Months Ended | |||
Feb. 28, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 0 | $ 12,704,000,000 | |||
Debt issuance costs | 96,000,000 | ||||
Accrued interest on short-term borrowings | 15,000,000 | ||||
Long-term debt issued | 16,265,000,000 | $ 0 | |||
Repayment of short-term borrowings | 12,800,000,000 | $ 0 | |||
Accrued interest on long-term debt | 210,000,000 | 207,000,000 | |||
Reported Value Measurement [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 29,200,000,000 | 13,000,000,000 | |||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 29,900,000,000 | 12,500,000,000 | |||
Term Loan Agreement, JUUL and Cronos [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 12,800,000,000 | ||||
Pre-tax acquisition-related costs | $ 96,000,000 | ||||
Repayment of short-term borrowings | $ 12,800,000,000 | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 101.00% | ||||
Senior Notes [Member] | USD Denominated Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | 11,500,000,000 | ||||
Senior Notes [Member] | Euro Denominated Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | € 4,250,000,000 | ||||
Long-term debt issued | 4,800,000,000 | ||||
Senior Notes [Member] | USD Denominated Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,000,000,000 | ||||
Stated interest rate | 3.49% | 3.49% | |||
Senior Notes [Member] | USD Denominated Notes Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,000,000,000 | ||||
Stated interest rate | 3.80% | 3.80% | |||
Senior Notes [Member] | USD Denominated Notes Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,500,000,000 | ||||
Stated interest rate | 4.40% | 4.40% | |||
Senior Notes [Member] | USD Denominated Notes Due 2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 3,000,000,000 | ||||
Stated interest rate | 4.80% | 4.80% | |||
Senior Notes [Member] | USD Denominated Notes Due 2039 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 2,000,000,000 | ||||
Stated interest rate | 5.80% | 5.80% | |||
Senior Notes [Member] | USD Denominated Notes Due 2049 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 2,500,000,000 | ||||
Stated interest rate | 5.95% | 5.95% | |||
Senior Notes [Member] | USD Denominated Notes Due 2059 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 500,000,000 | ||||
Stated interest rate | 6.20% | 6.20% | |||
Senior Notes [Member] | Euro Denominated Notes Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | € 1,250,000,000 | ||||
Stated interest rate | 1.00% | 1.00% | |||
Senior Notes [Member] | Euro Denominated Notes Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | € 750,000,000 | ||||
Stated interest rate | 1.70% | 1.70% | |||
Senior Notes [Member] | Euro Denominated Notes Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | € 1,000,000,000 | ||||
Stated interest rate | 2.20% | 2.20% | |||
Senior Notes [Member] | Euro Denominated Notes Due 2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | € 1,250,000,000 | ||||
Stated interest rate | 3.125% | 3.125% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax rate | 26.10% | |
Increase in income tax percentage | 0.029 | |
Tax benefits related to prior audit years | $ 22 | |
Tax benefits related to the 2017 Tax Cuts and Jobs Act | 20 | |
Tax expense related to valuation allowance on foreign tax credit carryforwards | $ 11 | |
Tax benefits related to effective settlement of IRS audit | 11 | |
Unrecognized tax benefits | 55 | 85 |
Unrecognized tax benefits that would impact the effective tax rate | 45 | 59 |
Unrecognized tax benefits that would impact deferred taxes | 10 | $ 26 |
Possible decrease in unrecognized tax benefits | $ 14 |
Contingencies (General Informat
Contingencies (General Information) (Details) | Mar. 31, 2019state |
Commitments and Contingencies Disclosure [Abstract] | |
Number of states that cap bond or require no bond | 47 |
Contingencies (Schedule Of Pend
Contingencies (Schedule Of Pending Cases) (Details) | Apr. 22, 2019case | Mar. 31, 2018case | Dec. 31, 2017caseplantifftrial | Apr. 23, 2018case | Apr. 27, 2017case |
Individual Smoking And Health Cases [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 102 | 80 | |||
ETS Smoking and Health Case, Flight Attendants [Member] | Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of claims dismissed | 923 | ||||
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 4 | 5 | |||
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | Pending Litigation [Member] | WEST VIRGINIA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases | 30 | ||||
Number of plaintiffs | plantiff | 30 | ||||
Number of consolidated trials | trial | 6 | ||||
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | Pending Litigation [Member] | WEST VIRGINIA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases | 9 | ||||
Health Care Cost Recovery Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 1 | 1 | |||
Lights Ultra Lights Class Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 3 | 5 | |||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 98 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Pending Litigation [Member] | MASSACHUSETTS [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 29 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Pending Litigation [Member] | FLORIDA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 38 | ||||
Subsequent Event [Member] | ETS Smoking and Health Case, Flight Attendants [Member] | Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases | 1,490 | ||||
Subsequent Event [Member] | Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 2 | ||||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 1 | ||||
Subsequent Event [Member] | Lights Ultra Lights Class Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 2 |
Contingencies (Overview of Altr
Contingencies (Overview of Altria and/or PM USA Tobacco-Related Litigation Narrative) (Details) - case | Apr. 22, 2019 | Apr. 22, 2019 | Apr. 23, 2018 | Apr. 27, 2017 |
Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1 | 1 | ||
Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 4 | 5 | ||
Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 102 | 80 | ||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1 | 1 | ||
Subsequent Event [Member] | Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 2 | 2 | ||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 98 | 98 | ||
Subsequent Event [Member] | PM USA [Member] | Health Care Cost Recovery Actions [Member] | CANADA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 10 | 10 | ||
Subsequent Event [Member] | PM USA [Member] | Engle Progeny Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases set for trial | 4 | 4 | ||
Number of verdicts returned | 130 | |||
Number of favorable verdicts | 46 | |||
Number of unfavorable verdicts | 73 | |||
Subsequent Event [Member] | PM USA [Member] | Individual Smoking And Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases set for trial | 0 | 0 | ||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of verdicts returned | 65 | |||
Number of favorable verdicts | 43 | |||
Number of unfavorable verdicts | 22 | |||
Number of claims resolved | 20 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | ALASKA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | CALIFORNIA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 7 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | CONNECTICUT [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | FLORIDA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 10 | |||
Number cases with granted new trial | 1 | 1 | ||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | LOUISIANA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | MASSACHUSETTS [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 3 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | MISSISSIPPI [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | MISSOURI [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 4 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | NEW HAMPSHIRE [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | NEW JERSEY [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | NEW YORK [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 5 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | OHIO [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 2 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | PENNSYLVANIA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | RHODE ISLAND [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | TENNESSEE [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 2 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | WEST VIRGINIA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 2 | |||
Subsequent Event [Member] | Philip Morris USA and Altria Group [Member] | Health Care Cost Recovery Actions [Member] | CANADA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 8 | 8 | ||
Subsequent Event [Member] | Philip Morris USA and Altria Group [Member] | Smoking And Health Class Actions And Aggregated Claims Litigation [Member] | CANADA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 7 | 7 |
Contingencies (Judgments Paid a
Contingencies (Judgments Paid and Provisions for Tobacco and Health Litigation) (Details) $ in Millions | 3 Months Ended | 174 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Loss Contingency Accrual [Roll Forward] | |||
Accrued liability for tobacco and health litigation items at beginning of period | $ 112 | $ 106 | |
Payments | (109) | (23) | |
Accrued liability for tobacco and health litigation items at end of period | 20 | 111 | $ 20 |
Interest Expense Related To Litigation [Member] | |||
Loss Contingency Accrual [Roll Forward] | |||
Provision related to litigation recorded | 2 | 4 | |
Tobacco and Health Judgment [Member] | |||
Loss Contingencies [Line Items] | |||
Judgments paid (approximately) | 668 | ||
Litigation settlement interest expense (income) | 211 | ||
Tobacco and Health Judgment [Member] | Litigation Cases Results [Member] | |||
Loss Contingency Accrual [Roll Forward] | |||
Provision related to litigation recorded | 15 | $ 24 | |
Engle Progeny Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Judgments paid (approximately) | 276 | ||
Litigation settlement interest expense (income) | 49 | ||
Assets [Member] | Pending Litigation [Member] | PM USA [Member] | |||
Loss Contingency Accrual [Roll Forward] | |||
Security posted for appeal of judgments | $ 103 | $ 103 |
Contingencies (Non-Engle Progen
Contingencies (Non-Engle Progeny Litigation) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Oct. 31, 2017 | |
Loss Contingencies [Line Items] | |||||
Loss contingency accrual, payments | $ 109,000,000 | $ 23,000,000 | |||
Non-Engle Progeny Smoking and Health Case, Capone [Member] | |||||
Loss Contingencies [Line Items] | |||||
Compensatory damages awarded | $ 225,000 | ||||
Non-Engle Progeny Smoking and Health Case, Capone [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Provision related to litigation recorded | $ 325,000 | ||||
Non-Engle Progeny Smoking and Health Case, Gentile [Member] | |||||
Loss Contingencies [Line Items] | |||||
Compensatory damages awarded | $ 7,100,000 | ||||
Non-Engle Progeny Smoking and Health Case, Gentile [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Compensatory damages awarded | $ 5,300,000 | ||||
Compensatory damages award, allocation percentage | 75.00% | ||||
Subsequent Event [Member] | Non-Engle Progeny Smoking and Health Case, Capone [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual, payments | $ 325,000 |
Contingencies (Engle Class Acti
Contingencies (Engle Class Action And Engle Progeny Trial Results) (Details) | Apr. 22, 2019USD ($)caseplantiff | Jul. 31, 2006 | Dec. 31, 2015case | Jul. 31, 2000USD ($) |
Engle Progeny Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Punitive damages awarded | $ | $ 145,000,000,000 | |||
Engle Progeny Cases [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Punitive damages awarded | $ | $ 74,000,000,000 | |||
Period for decertified class members could file individual actions | 1 year | |||
Engle Progeny Cases, Federal [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of claims resolved | 415 | |||
Subsequent Event [Member] | Engle Progeny Cases [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of verdicts returned | 130 | |||
Number of unfavorable verdicts | 73 | |||
Number of claims with unfavorable verdicts pending/reversed | 7 | |||
Number of favorable verdicts | 46 | |||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plantiff | 2,600 | |||
Number of cases pending | 2,000 | |||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 41 | |||
Subsequent Event [Member] | Engle Progeny Cases, Federal [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 4 | |||
Subsequent Event [Member] | Engle Progeny Cases, D Cohen, Collar, Chacon [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of verdicts reversed | 4 | |||
Subsequent Event [Member] | Engle Progeny Cases, Reider and Banks [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Zero damages verdicts | 2 | |||
Damages awarded, value | $ | $ 0 | |||
Subsequent Event [Member] | Engle Progeny Cases, Weingart and Hancock [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Zero damages verdict modified | 2 | |||
Damages awarded, value | $ | $ 0 | |||
Subsequent Event [Member] | Engle Progeny Cases, Pollari [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 |
Contingencies (Engle Progeny Ca
Contingencies (Engle Progeny Cases Trial Results - Pending and Concluded) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Feb. 28, 2019 | Jul. 31, 2018 | Jun. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Oct. 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2015 | Jul. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 109 | $ 23 | |||||||||||||||||||||||
Engle Progeny Cases, Berger [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 6 | ||||||||||||||||||||||||
Provision related to litigation recorded | $ 6 | ||||||||||||||||||||||||
Engle Progeny Cases, Berger [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 21 | ||||||||||||||||||||||||
Engle Progeny Cases, McCall [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 1 | 1 | |||||||||||||||||||||||
Engle Progeny Cases, McCall [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | 1 | 1 | |||||||||||||||||||||||
Engle Progeny Cases, Neff [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 4 | 4 | |||||||||||||||||||||||
Engle Progeny Cases, Neff [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | 2 | 2 | |||||||||||||||||||||||
Engle Progeny Cases, Frogel [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 1 | 1 | |||||||||||||||||||||||
Engle Progeny Cases, Frogel [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 1 | 1 | |||||||||||||||||||||||
Punitive damages awarded | 0 | $ 0 | |||||||||||||||||||||||
Engle Progeny Cases, Mahfuz [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 12 | ||||||||||||||||||||||||
Engle Progeny Cases, Mahfuz [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | 10 | ||||||||||||||||||||||||
Engle Progeny Cases, Holliman [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 3 | ||||||||||||||||||||||||
Engle Progeny Cases, Holliman [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Chadwell [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Chadwell [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Kaplan [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Kaplan [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Landi [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 8 | ||||||||||||||||||||||||
Engle Progeny Cases, Landi [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 5 | ||||||||||||||||||||||||
Engle Progeny Cases, Theis [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 7 | ||||||||||||||||||||||||
Engle Progeny Cases, Theis [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | 10 | ||||||||||||||||||||||||
Engle Progeny Cases, Freeman [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 4 | ||||||||||||||||||||||||
Engle Progeny Cases, Freeman [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Gloger [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 8 | ||||||||||||||||||||||||
Engle Progeny Cases, Gloger [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 5 | ||||||||||||||||||||||||
Engle Progeny Cases, Bryant [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Bryant [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, R. Douglas [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, R. Douglas [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Wallace [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 12 | ||||||||||||||||||||||||
Engle Progeny Cases, Wallace [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 16 | ||||||||||||||||||||||||
Engle Progeny Cases, Sommers [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Sommers [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Santoro [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Santoro [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Cooper [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 5 | ||||||||||||||||||||||||
Engle Progeny Cases, Cooper [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 1 | ||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, McCoy [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||||||||||||||
Engle Progeny Cases, McCoy [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 1 | ||||||||||||||||||||||||
Punitive damages awarded | $ 3 | ||||||||||||||||||||||||
Engle Progeny Cases, D. Brown [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 8 | ||||||||||||||||||||||||
Engle Progeny Cases, D. Brown [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 9 | ||||||||||||||||||||||||
Engle Progeny Cases, Kerrivan [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 16 | ||||||||||||||||||||||||
Engle Progeny Cases, Kerrivan [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Punitive damages awarded | $ 16 | ||||||||||||||||||||||||
Engle Progeny Cases, Harris [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Harris [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages awarded | 1 | ||||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||||
Engle Progeny Cases, Danielson [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 3 | ||||||||||||||||||||||||
Engle Progeny Cases, S. Martin [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 5 | ||||||||||||||||||||||||
Engle Progeny Cases, Searcy [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Boatright [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 42 | ||||||||||||||||||||||||
Engle Progeny Cases, M. Brown [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 8 | ||||||||||||||||||||||||
Engle Progeny Cases, Jordan [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 11 | ||||||||||||||||||||||||
Engle Progeny Cases, Pardue [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 11 | ||||||||||||||||||||||||
Engle Progeny Cases, McKeever [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 21 | ||||||||||||||||||||||||
Engle Progeny Cases, Boulter [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Simon [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Perrotto [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Gore [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Putney [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 5 | ||||||||||||||||||||||||
Engle Progeny Cases, Sermons [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Tognoli [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Howles [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 6 | ||||||||||||||||||||||||
Engle Progeny Cases, Purdo [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 10 | ||||||||||||||||||||||||
Engle Progeny Cases, Griffin [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 1 | ||||||||||||||||||||||||
Engle Progeny Cases, Ledoux [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 20 | ||||||||||||||||||||||||
Engle Progeny Cases, Burkhart [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 2 | ||||||||||||||||||||||||
Engle Progeny Cases, Barbose [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 12 | ||||||||||||||||||||||||
Engle Progeny Cases, Allen [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | 10 | ||||||||||||||||||||||||
Engle Progeny Cases, Ahrens [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 7 | ||||||||||||||||||||||||
Subsequent Event [Member] | Engle Progeny Cases, J. Brown [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 4 | ||||||||||||||||||||||||
Subsequent Event [Member] | Engle Progeny Cases, L. Martin [Member] | Settled Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency accrual, payments | $ 2 |
Contingencies (Florida Bond Sta
Contingencies (Florida Bond Statute) (Details) - Engle Progeny Cases, State [Member] $ in Millions | 1 Months Ended |
Jun. 30, 2009USD ($)case | |
Florida [Member] | |
Loss Contingencies [Line Items] | |
Maximum bond for all defendants | $ | $ 200 |
Alachua County, Florida [Member] | |
Loss Contingencies [Line Items] | |
Number of cases in which plaintiffs that challenged constitutionality of bond cap statute | 3 |
Escambia County, Florida [Member] | |
Loss Contingencies [Line Items] | |
Number of cases in which plaintiffs that challenged constitutionality of bond cap statute | 1 |
Contingencies (Other Smoking an
Contingencies (Other Smoking and Health Class Actions) (Details) - Smoking And Health Class Actions And Aggregated Claims Litigation [Member] $ in Billions | 1 Months Ended | 275 Months Ended | |||
Mar. 31, 2019CAD ($)rulingmanufacture | Mar. 31, 2019caserulingmanufacture | Apr. 22, 2019case | Apr. 23, 2018case | Apr. 27, 2017case | |
Loss Contingencies [Line Items] | |||||
Number of cases pending | 4 | 5 | |||
PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 61 | ||||
ARKANSAS [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
CALIFORNIA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
DELAWARE [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
DISTRICT OF COLUMBIA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 2 | ||||
Florida [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 2 | ||||
ILLINOIS [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 3 | ||||
IOWA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
KANSAS [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
LOUISIANA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
MARYLAND [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
MICHIGAN [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
MINNESOTA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
NEVADA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 29 | ||||
NEW JERSEY [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 6 | ||||
NEW YORK [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 2 | ||||
OHIO [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
OKLAHOMA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
OREGON [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
PENNSYLVANIA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
PUERTO RICO [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
SOUTH CAROLINA [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
TEXAS [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
WISCONSIN [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Class not certified | 1 | ||||
CANADA [Member] | Canadian Tobacco Manufacturers [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of manufacturers | manufacture | 3 | 3 | |||
Number of verdicts upheld | ruling | 2 | 2 | |||
Amount awarded to other party | $ | $ 13 | ||||
Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 2 | ||||
Subsequent Event [Member] | CANADA [Member] | Philip Morris USA and Altria Group [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 7 | ||||
Subsequent Event [Member] | BRITISH COLUMBIA and SASKATCHEWAN [Member] | Philip Morris USA and Altria Group [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | 2 |
Contingencies (Health Care Cost
Contingencies (Health Care Cost Recovery Litigation) (Details) - Health Care Cost Recovery Actions [Member] | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 1998USD ($)state | Mar. 31, 2019USD ($)case | Mar. 31, 2018USD ($) | Apr. 23, 2018case | Apr. 27, 2017case | |
Loss Contingencies [Line Items] | |||||
Number of cases pending | case | 1 | 1 | |||
Number of states with settled litigation | state | 46 | ||||
State settlement agreements annual payments | $ 9,400,000,000 | ||||
State settlement agreements attorney fees annual cap | $ 500,000,000 | ||||
Litigation settlement | $ 900,000,000 | $ 1,000,000,000 | |||
Threatened Litigation [Member] | Canada [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | case | 10 |
Contingencies (NPM Adjustment D
Contingencies (NPM Adjustment Disputes - Settlement with 36 States and Territories and Settlement with New York) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2019USD ($) | Apr. 25, 2019USD ($) | Apr. 30, 2018USD ($) | Oct. 31, 2017USD ($)state | Sep. 30, 2013USD ($)state | Nov. 30, 1998state | Mar. 31, 2019USD ($)claimstate | Jun. 30, 2018USD ($)state | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018state | |
Health Care Cost Recovery Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of states with settled litigation | state | 46 | ||||||||||
Litigation settlement | $ 900 | $ 1,000 | |||||||||
PM USA [Member] | Health Care Cost Recovery Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, reduction to cost of sales | $ 52 | $ 90 | 81 | ||||||||
PM USA [Member] | Health Care Cost Recovery Actions [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, number of states with settled litigation including New York, subsequent expansion | state | 36 | ||||||||||
Settlement agreements, number | claim | 2 | ||||||||||
Number of states with settled litigation | state | 37 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2003-2015 NPM Adjustments [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, number of states with settled litigation including New York, subsequent expansion | state | 26 | ||||||||||
Proceeds from legal settlements | $ 740 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2004-2017 [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Proceeds from legal settlements | $ 90 | $ 81 | |||||||||
Loss contingency, number of additional states added | state | 9 | ||||||||||
Payments received from litigation settlement | $ 68 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2015-2017 Transition Years [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Proceeds from legal settlements | 13 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2003 NPM Adjustment [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of states with settled litigation | state | 2 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2003 NPM Adjustment [Member] | Pending Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, number of states | state | 15 | ||||||||||
Number of states without defense | state | 6 | ||||||||||
Loss contingency, number of disputes outstanding | state | 2 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2003 NPM Adjustment [Member] | Pending Litigation [Member] | Cost of Sales [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, reduction to cost of sales | $ 74 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2004 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 388 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2005 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 181 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2006 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 154 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2007 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 185 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2008 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 250 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2009 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 211 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2010 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 218 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2011 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 166 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2012 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 214 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2013 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 224 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2014 NPM Adjustment [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 258 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2015 NPM Adjustments [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 299 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2016 NPM Adjustments [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, reduction to cost of sales | $ 39 | ||||||||||
Estimate of possible gain | 292 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2017 NPM Adjustments [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, reduction to cost of sales | $ 38 | ||||||||||
Estimate of possible gain | 285 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2016 and 2017 NPM Adjustments [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, number of states with settled litigation including New York, subsequent expansion | state | 26 | ||||||||||
Proceeds from legal settlements | 77 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2018 NPM Adjustments [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible gain | 332 | ||||||||||
NEW YORK [Member] | PM USA [Member] | Health Care Cost Recovery Actions, Transition Years 2004-2017 [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Proceeds from legal settlements | $ 265 | ||||||||||
Maryland, Missouri, New Mexico and Pennsylvania [Member] | PM USA [Member] | Health Care Cost Recovery Actions, 2003 NPM Adjustment [Member] | Pending Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, number of states remaining | state | 4 | ||||||||||
Subsequent Event [Member] | PM USA [Member] | Health Care Cost Recovery Actions, 2004-2017 [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Proceeds from legal settlements | $ 77 | ||||||||||
Payments received from litigation settlement | $ 5 | ||||||||||
Subsequent Event [Member] | PM USA [Member] | Health Care Cost Recovery Actions, 2016 and 2017 NPM Adjustments [Member] | Settled Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Proceeds from legal settlements | $ 39 |
Contingencies (Other Disputes U
Contingencies (Other Disputes Under the State Settlement Agreements) (Details) $ in Millions | 1 Months Ended |
Aug. 31, 2018USD ($) | |
PM USA [Member] | Other Disputes Under the State Settlement Agreements [Member] | |
Loss Contingencies [Line Items] | |
Amount ordered to be paid from other party | $ 9.8 |
Contingencies (Federal Governme
Contingencies (Federal Government's Lawsuit) (Details) - Federal Governments Lawsuit [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Aug. 31, 2006 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||
Disclosure period | 10 years | |
Implementation of Corrective Communications [Member] | ||
Loss Contingencies [Line Items] | ||
Provision related to litigation recorded | $ 31 |
Contingencies (Lights_Ultra Lig
Contingencies (Lights/Ultra Lights Cases) (Details) | Apr. 22, 2019casecourt | Apr. 23, 2018case | Apr. 27, 2017case |
Lights Ultra Lights Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases pending | 3 | 5 | |
Subsequent Event [Member] | Lights Ultra Lights Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases pending | 2 | ||
Subsequent Event [Member] | Lights [Member] | |||
Loss Contingencies [Line Items] | |||
Claims not certified, number | 23 | ||
Subsequent Event [Member] | Lights [Member] | PM USA [Member] | |||
Loss Contingencies [Line Items] | |||
Number of state courts | court | 21 |
Contingencies (UST Litigations
Contingencies (UST Litigations Narrative) (Details) | 1 Months Ended |
Jul. 31, 2006case | |
CALIFORNIA [Member] | UST Litigation [Member] | |
Loss Contingencies [Line Items] | |
Claims filed, number | 1 |
Contingencies (Guarantees and O
Contingencies (Guarantees and Other Similar Matters Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Contingent liability related to performance surety bonds | $ 30,000,000 | |
Redeemable noncontrolling interest | 38,000,000 | $ 39,000,000 |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Credit line available under the agreement | 56,000,000 | |
Revolving Credit Facility [Member] | Credit Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Credit line available under the agreement | $ 3,000,000,000 | |
Debt instrument, term | 5 years |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 3,352,000,000 | $ 1,333,000,000 | ||
Receivables | 158,000,000 | 142,000,000 | ||
Inventories: | ||||
Leaf tobacco | 930,000,000 | 940,000,000 | ||
Other raw materials | 190,000,000 | 186,000,000 | ||
Work in process | 651,000,000 | 647,000,000 | ||
Finished product | 585,000,000 | 558,000,000 | ||
Inventory, net | 2,356,000,000 | 2,331,000,000 | ||
Due from Altria and subsidiaries | 0 | 0 | ||
Income taxes | 3,000,000 | 167,000,000 | ||
Other current assets | 393,000,000 | 326,000,000 | ||
Total current assets | 6,262,000,000 | 4,299,000,000 | ||
Property, plant and equipment, at cost | 4,917,000,000 | 4,950,000,000 | ||
Less accumulated depreciation | 2,995,000,000 | 3,012,000,000 | ||
Property, plant and equipment, net | 1,922,000,000 | 1,938,000,000 | ||
Goodwill | 5,196,000,000 | 5,196,000,000 | ||
Other intangible assets, net | 12,327,000,000 | 12,279,000,000 | ||
Investments in equity securities | 32,015,000,000 | 30,496,000,000 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Due from Altria and subsidiaries | 0 | 0 | ||
Other assets | 1,511,000,000 | 1,430,000,000 | ||
Total Assets | 59,233,000,000 | 55,638,000,000 | ||
Liabilities | ||||
Short-term borrowings | 0 | 12,704,000,000 | ||
Current portion of long-term debt | 2,144,000,000 | 1,144,000,000 | ||
Accounts payable | 205,000,000 | 399,000,000 | ||
Accrued liabilities: | ||||
Marketing | 490,000,000 | 586,000,000 | ||
Settlement charges | 4,367,000,000 | 3,454,000,000 | ||
Other | 1,412,000,000 | 1,403,000,000 | ||
Dividends payable | 1,501,000,000 | 1,503,000,000 | ||
Due to Altria and subsidiaries | 0 | 0 | ||
Total current liabilities | 10,119,000,000 | 21,193,000,000 | ||
Long-term debt | 27,024,000,000 | 11,898,000,000 | ||
Deferred income taxes | 5,353,000,000 | 5,172,000,000 | ||
Accrued pension costs | 497,000,000 | 544,000,000 | ||
Accrued postretirement health care costs | 1,764,000,000 | 1,749,000,000 | ||
Due to Altria and subsidiaries | 0 | 0 | ||
Other liabilities | 357,000,000 | 254,000,000 | ||
Total liabilities | 45,114,000,000 | 40,810,000,000 | ||
Contingencies | ||||
Redeemable noncontrolling interest | 38,000,000 | 39,000,000 | ||
Stockholders’ Equity | ||||
Common stock | 935,000,000 | 935,000,000 | ||
Additional paid-in capital | 5,943,000,000 | 5,961,000,000 | ||
Earnings reinvested in the business | 43,582,000,000 | 43,962,000,000 | ||
Accumulated other comprehensive losses | (2,717,000,000) | (2,547,000,000) | ||
Cost of repurchased stock | (33,664,000,000) | (33,524,000,000) | ||
Total stockholders’ equity attributable to Altria | 14,079,000,000 | 14,787,000,000 | ||
Noncontrolling interests | 2,000,000 | 2,000,000 | ||
Total stockholders’ equity | 14,081,000,000 | 14,789,000,000 | $ 15,397,000,000 | $ 15,380,000,000 |
Total Liabilities and Stockholders’ Equity | 59,233,000,000 | 55,638,000,000 | ||
Reportable Legal Entities [Member] | Altria Group, Inc. [Member] | ||||
Assets | ||||
Cash and cash equivalents | 3,318,000,000 | 1,277,000,000 | ||
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 and subsidiaries | 82,000,000 | 46,000,000 | ||
Income taxes | 189,000,000 | 100,000,000 | ||
Other current assets | 62,000,000 | 41,000,000 | ||
Total current assets | 3,651,000,000 | 1,464,000,000 | ||
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 | ||
Investments in equity securities | 17,476,000,000 | 17,696,000,000 | ||
Investment in consolidated subsidiaries | 27,378,000,000 | 25,996,000,000 | ||
Due from Altria and subsidiaries | 4,790,000,000 | 4,790,000,000 | ||
Other assets | 204,000,000 | 193,000,000 | ||
Total Assets | 53,499,000,000 | 50,139,000,000 | ||
Liabilities | ||||
Short-term borrowings | 12,704,000,000 | |||
Current portion of long-term debt | 2,144,000,000 | 1,144,000,000 | ||
Accounts payable | 1,000,000 | 1,000,000 | ||
Accrued liabilities: | ||||
Marketing | 0 | 0 | ||
Settlement charges | 0 | 0 | ||
Other | 311,000,000 | 295,000,000 | ||
Dividends payable | 1,501,000,000 | 1,503,000,000 | ||
Due to Altria and subsidiaries | 5,192,000,000 | 4,499,000,000 | ||
Total current liabilities | 9,149,000,000 | 20,146,000,000 | ||
Long-term debt | 27,024,000,000 | 11,898,000,000 | ||
Deferred income taxes | 2,992,000,000 | 3,010,000,000 | ||
Accrued pension costs | 188,000,000 | 187,000,000 | ||
Accrued postretirement health care costs | 0 | 0 | ||
Due to Altria and subsidiaries | 0 | 0 | ||
Other liabilities | 67,000,000 | 111,000,000 | ||
Total liabilities | 39,420,000,000 | 35,352,000,000 | ||
Contingencies | ||||
Redeemable noncontrolling interest | 0 | 0 | ||
Stockholders’ Equity | ||||
Common stock | 935,000,000 | 935,000,000 | ||
Additional paid-in capital | 5,943,000,000 | 5,961,000,000 | ||
Earnings reinvested in the business | 43,582,000,000 | 43,962,000,000 | ||
Accumulated other comprehensive losses | (2,717,000,000) | (2,547,000,000) | ||
Cost of repurchased stock | (33,664,000,000) | (33,524,000,000) | ||
Total stockholders’ equity attributable to Altria | 14,079,000,000 | 14,787,000,000 | ||
Noncontrolling interests | 0 | 0 | ||
Total stockholders’ equity | 14,079,000,000 | 14,787,000,000 | ||
Total Liabilities and Stockholders’ Equity | 53,499,000,000 | 50,139,000,000 | ||
Reportable Legal Entities [Member] | PM USA [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables | 19,000,000 | 18,000,000 | ||
Inventories: | ||||
Leaf tobacco | 544,000,000 | 561,000,000 | ||
Other raw materials | 122,000,000 | 123,000,000 | ||
Work in process | 10,000,000 | 2,000,000 | ||
Finished product | 159,000,000 | 128,000,000 | ||
Inventory, net | 835,000,000 | 814,000,000 | ||
Due from Altria and subsidiaries | 4,574,000,000 | 3,828,000,000 | ||
Income taxes | 3,000,000 | 94,000,000 | ||
Other current assets | 225,000,000 | 167,000,000 | ||
Total current assets | 5,656,000,000 | 4,921,000,000 | ||
Property, plant and equipment, at cost | 2,931,000,000 | 2,928,000,000 | ||
Less accumulated depreciation | 2,128,000,000 | 2,111,000,000 | ||
Property, plant and equipment, net | 803,000,000 | 817,000,000 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 2,000,000 | 2,000,000 | ||
Investments in equity securities | 0 | 0 | ||
Investment in consolidated subsidiaries | 2,825,000,000 | 2,825,000,000 | ||
Due from Altria and subsidiaries | 0 | 0 | ||
Other assets | 1,030,000,000 | 955,000,000 | ||
Total Assets | 10,316,000,000 | 9,520,000,000 | ||
Liabilities | ||||
Short-term borrowings | 0 | |||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 66,000,000 | 91,000,000 | ||
Accrued liabilities: | ||||
Marketing | 418,000,000 | 483,000,000 | ||
Settlement charges | 4,359,000,000 | 3,448,000,000 | ||
Other | 715,000,000 | 524,000,000 | ||
Dividends payable | 0 | 0 | ||
Due to Altria and subsidiaries | 433,000,000 | 407,000,000 | ||
Total current liabilities | 5,991,000,000 | 4,953,000,000 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Accrued pension costs | 0 | 0 | ||
Accrued postretirement health care costs | 1,074,000,000 | 1,072,000,000 | ||
Due to Altria and subsidiaries | 0 | 0 | ||
Other liabilities | 93,000,000 | 47,000,000 | ||
Total liabilities | 7,158,000,000 | 6,072,000,000 | ||
Contingencies | ||||
Redeemable noncontrolling interest | 0 | 0 | ||
Stockholders’ Equity | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 3,310,000,000 | 3,310,000,000 | ||
Earnings reinvested in the business | 64,000,000 | 359,000,000 | ||
Accumulated other comprehensive losses | (216,000,000) | (221,000,000) | ||
Cost of repurchased stock | 0 | 0 | ||
Total stockholders’ equity attributable to Altria | 3,158,000,000 | 3,448,000,000 | ||
Noncontrolling interests | 0 | 0 | ||
Total stockholders’ equity | 3,158,000,000 | 3,448,000,000 | ||
Total Liabilities and Stockholders’ Equity | 10,316,000,000 | 9,520,000,000 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 34,000,000 | 56,000,000 | ||
Receivables | 139,000,000 | 124,000,000 | ||
Inventories: | ||||
Leaf tobacco | 386,000,000 | 379,000,000 | ||
Other raw materials | 68,000,000 | 63,000,000 | ||
Work in process | 641,000,000 | 645,000,000 | ||
Finished product | 426,000,000 | 430,000,000 | ||
Inventory, net | 1,521,000,000 | 1,517,000,000 | ||
Due from Altria and subsidiaries | 1,166,000,000 | 1,194,000,000 | ||
Income taxes | 0 | 0 | ||
Other current assets | 106,000,000 | 118,000,000 | ||
Total current assets | 2,966,000,000 | 3,009,000,000 | ||
Property, plant and equipment, at cost | 1,986,000,000 | 2,022,000,000 | ||
Less accumulated depreciation | 867,000,000 | 901,000,000 | ||
Property, plant and equipment, net | 1,119,000,000 | 1,121,000,000 | ||
Goodwill | 5,196,000,000 | 5,196,000,000 | ||
Other intangible assets, net | 12,325,000,000 | 12,277,000,000 | ||
Investments in equity securities | 14,539,000,000 | 12,800,000,000 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Due from Altria and subsidiaries | 0 | 0 | ||
Other assets | 947,000,000 | 952,000,000 | ||
Total Assets | 37,092,000,000 | 35,355,000,000 | ||
Liabilities | ||||
Short-term borrowings | 0 | |||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 138,000,000 | 307,000,000 | ||
Accrued liabilities: | ||||
Marketing | 72,000,000 | 103,000,000 | ||
Settlement charges | 8,000,000 | 6,000,000 | ||
Other | 575,000,000 | 611,000,000 | ||
Dividends payable | 0 | 0 | ||
Due to Altria and subsidiaries | 197,000,000 | 162,000,000 | ||
Total current liabilities | 990,000,000 | 1,189,000,000 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 3,031,000,000 | 2,832,000,000 | ||
Accrued pension costs | 309,000,000 | 357,000,000 | ||
Accrued postretirement health care costs | 690,000,000 | 677,000,000 | ||
Due to Altria and subsidiaries | 4,790,000,000 | 4,790,000,000 | ||
Other liabilities | 197,000,000 | 96,000,000 | ||
Total liabilities | 10,007,000,000 | 9,941,000,000 | ||
Contingencies | ||||
Redeemable noncontrolling interest | 38,000,000 | 39,000,000 | ||
Stockholders’ Equity | ||||
Common stock | 9,000,000 | 9,000,000 | ||
Additional paid-in capital | 26,994,000,000 | 25,047,000,000 | ||
Earnings reinvested in the business | 1,903,000,000 | 2,201,000,000 | ||
Accumulated other comprehensive losses | (1,861,000,000) | (1,884,000,000) | ||
Cost of repurchased stock | 0 | 0 | ||
Total stockholders’ equity attributable to Altria | 27,045,000,000 | 25,373,000,000 | ||
Noncontrolling interests | 2,000,000 | 2,000,000 | ||
Total stockholders’ equity | 27,047,000,000 | 25,375,000,000 | ||
Total Liabilities and Stockholders’ Equity | 37,092,000,000 | 35,355,000,000 | ||
Total Consolidating Adjustments [Member] | ||||
Assets | ||||
Cash and cash equivalents | 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 and subsidiaries | (5,822,000,000) | (5,068,000,000) | ||
Income taxes | (189,000,000) | (27,000,000) | ||
Other current assets | 0 | 0 | ||
Total current assets | (6,011,000,000) | (5,095,000,000) | ||
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 | ||
Investments in equity securities | 0 | 0 | ||
Investment in consolidated subsidiaries | (30,203,000,000) | (28,821,000,000) | ||
Due from Altria and subsidiaries | (4,790,000,000) | (4,790,000,000) | ||
Other assets | (670,000,000) | (670,000,000) | ||
Total Assets | (41,674,000,000) | (39,376,000,000) | ||
Liabilities | ||||
Short-term borrowings | 0 | |||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued liabilities: | ||||
Marketing | 0 | 0 | ||
Settlement charges | 0 | 0 | ||
Other | (189,000,000) | (27,000,000) | ||
Dividends payable | 0 | 0 | ||
Due to Altria and subsidiaries | (5,822,000,000) | (5,068,000,000) | ||
Total current liabilities | (6,011,000,000) | (5,095,000,000) | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | (670,000,000) | (670,000,000) | ||
Accrued pension costs | 0 | 0 | ||
Accrued postretirement health care costs | 0 | 0 | ||
Due to Altria and subsidiaries | (4,790,000,000) | (4,790,000,000) | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (11,471,000,000) | (10,555,000,000) | ||
Contingencies | ||||
Redeemable noncontrolling interest | 0 | 0 | ||
Stockholders’ Equity | ||||
Common stock | (9,000,000) | (9,000,000) | ||
Additional paid-in capital | (30,304,000,000) | (28,357,000,000) | ||
Earnings reinvested in the business | (1,967,000,000) | (2,560,000,000) | ||
Accumulated other comprehensive losses | 2,077,000,000 | 2,105,000,000 | ||
Cost of repurchased stock | 0 | 0 | ||
Total stockholders’ equity attributable to Altria | (30,203,000,000) | (28,821,000,000) | ||
Noncontrolling interests | 0 | 0 | ||
Total stockholders’ equity | (30,203,000,000) | (28,821,000,000) | ||
Total Liabilities and Stockholders’ Equity | $ (41,674,000,000) | $ (39,376,000,000) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Earnings and Comprehensive Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | $ 5,628 | $ 6,108 |
Cost of sales | 1,578 | 1,734 |
Excise taxes on products | 1,239 | 1,438 |
Gross profit | 2,811 | 2,936 |
Marketing, administration and research costs | 533 | 618 |
Asset impairment and exit costs | 40 | 2 |
Operating (expense) income | 2,238 | 2,316 |
Interest and other debt expense (income), net | 384 | 166 |
Net periodic benefit income, excluding service cost | (1) | (7) |
Earnings from equity investment in AB InBev | (86) | (342) |
Gain on Cronos-related financial instruments, net | 425 | |
Loss on AB InBev/SABMiller business combination | 0 | 33 |
(Loss) earnings before income taxes and equity earnings of subsidiaries | 1,516 | 2,466 |
(Benefit) provision for income taxes | 395 | 571 |
Equity earnings of subsidiaries | 0 | 0 |
Net earnings | 1,121 | 1,895 |
Net earnings attributable to noncontrolling interests | (1) | (1) |
Net earnings attributable to Altria | 1,120 | 1,894 |
Net earnings | 1,121 | 1,895 |
Other comprehensive (losses) earnings, net of deferred income taxes | (170) | (30) |
Comprehensive earnings | 951 | 1,865 |
Comprehensive earnings attributable to noncontrolling interests | (1) | (1) |
Comprehensive earnings attributable to Altria | 950 | 1,864 |
Reportable Legal Entities [Member] | Altria Group, Inc. [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | 0 | 0 |
Cost of sales | 0 | 0 |
Excise taxes on products | 0 | 0 |
Gross profit | 0 | 0 |
Marketing, administration and research costs | 35 | 38 |
Asset impairment and exit costs | 1 | 0 |
Operating (expense) income | (36) | (38) |
Interest and other debt expense (income), net | 355 | 122 |
Net periodic benefit income, excluding service cost | 1 | 1 |
Earnings from equity investment in AB InBev | (86) | (342) |
Gain on Cronos-related financial instruments, net | 0 | |
Loss on AB InBev/SABMiller business combination | 33 | |
(Loss) earnings before income taxes and equity earnings of subsidiaries | (306) | 148 |
(Benefit) provision for income taxes | (75) | (13) |
Equity earnings of subsidiaries | 1,351 | 1,733 |
Net earnings | 1,120 | 1,894 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to Altria | 1,120 | 1,894 |
Net earnings | 1,120 | 1,894 |
Other comprehensive (losses) earnings, net of deferred income taxes | (170) | (30) |
Comprehensive earnings | 950 | 1,864 |
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
Comprehensive earnings attributable to Altria | 950 | 1,864 |
Reportable Legal Entities [Member] | PM USA [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | 4,725 | 5,214 |
Cost of sales | 1,340 | 1,487 |
Excise taxes on products | 1,185 | 1,383 |
Gross profit | 2,200 | 2,344 |
Marketing, administration and research costs | 384 | 449 |
Asset impairment and exit costs | 35 | 0 |
Operating (expense) income | 1,781 | 1,895 |
Interest and other debt expense (income), net | (25) | (9) |
Net periodic benefit income, excluding service cost | 0 | (6) |
Earnings from equity investment in AB InBev | 0 | 0 |
Gain on Cronos-related financial instruments, net | 0 | |
Loss on AB InBev/SABMiller business combination | 0 | |
(Loss) earnings before income taxes and equity earnings of subsidiaries | 1,806 | 1,910 |
(Benefit) provision for income taxes | 459 | 482 |
Equity earnings of subsidiaries | 95 | 89 |
Net earnings | 1,442 | 1,517 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to Altria | 1,442 | 1,517 |
Net earnings | 1,442 | 1,517 |
Other comprehensive (losses) earnings, net of deferred income taxes | 5 | 4 |
Comprehensive earnings | 1,447 | 1,521 |
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
Comprehensive earnings attributable to Altria | 1,447 | 1,521 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | 913 | 904 |
Cost of sales | 248 | 257 |
Excise taxes on products | 54 | 55 |
Gross profit | 611 | 592 |
Marketing, administration and research costs | 114 | 131 |
Asset impairment and exit costs | 4 | 2 |
Operating (expense) income | 493 | 459 |
Interest and other debt expense (income), net | 54 | 53 |
Net periodic benefit income, excluding service cost | (2) | (2) |
Earnings from equity investment in AB InBev | 0 | 0 |
Gain on Cronos-related financial instruments, net | 425 | |
Loss on AB InBev/SABMiller business combination | 0 | |
(Loss) earnings before income taxes and equity earnings of subsidiaries | 16 | 408 |
(Benefit) provision for income taxes | 11 | 102 |
Equity earnings of subsidiaries | 0 | 0 |
Net earnings | 5 | 306 |
Net earnings attributable to noncontrolling interests | (1) | (1) |
Net earnings attributable to Altria | 4 | 305 |
Net earnings | 5 | 306 |
Other comprehensive (losses) earnings, net of deferred income taxes | 23 | 39 |
Comprehensive earnings | 28 | 345 |
Comprehensive earnings attributable to noncontrolling interests | (1) | (1) |
Comprehensive earnings attributable to Altria | 27 | 344 |
Total Consolidating Adjustments [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | (10) | (10) |
Cost of sales | (10) | (10) |
Excise taxes on products | 0 | 0 |
Gross profit | 0 | 0 |
Marketing, administration and research costs | 0 | 0 |
Asset impairment and exit costs | 0 | 0 |
Operating (expense) income | 0 | 0 |
Interest and other debt expense (income), net | 0 | 0 |
Net periodic benefit income, excluding service cost | 0 | 0 |
Earnings from equity investment in AB InBev | 0 | 0 |
Gain on Cronos-related financial instruments, net | 0 | |
Loss on AB InBev/SABMiller business combination | 0 | |
(Loss) earnings before income taxes and equity earnings of subsidiaries | 0 | 0 |
(Benefit) provision for income taxes | 0 | 0 |
Equity earnings of subsidiaries | (1,446) | (1,822) |
Net earnings | (1,446) | (1,822) |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to Altria | (1,446) | (1,822) |
Net earnings | (1,446) | (1,822) |
Other comprehensive (losses) earnings, net of deferred income taxes | (28) | (43) |
Comprehensive earnings | (1,474) | (1,865) |
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
Comprehensive earnings attributable to Altria | $ (1,474) | $ (1,865) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Provided by Operating Activities | ||
Net cash provided by operating activities | $ 2,289 | $ 2,809 |
Cash Used in Investing Activities | ||
Capital expenditures | (38) | (34) |
Investment in Cronos common shares and warrant | (1,831) | |
Investment in consolidated subsidiaries | 0 | |
Other, net | (81) | (7) |
Net cash used in investing activities | (1,950) | (41) |
Cash Provided by (Used in) Financing Activities | ||
Repayment of short-term borrowings | (12,800) | 0 |
Long-term debt issued | 16,265 | 0 |
Repurchases of common stock | (151) | (513) |
Dividends paid on common stock | (1,502) | (1,257) |
Changes in amounts due to/from Altria and subsidiaries | 0 | 0 |
Cash dividends paid to parent | 0 | 0 |
Other | (129) | (23) |
Net cash provided by (used in) financing activities | 1,683 | (1,793) |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 2,022 | 975 |
Balance at beginning of period | 1,433 | 1,314 |
Balance at end of period | 3,455 | 2,289 |
Reportable Legal Entities [Member] | Altria Group, Inc. [Member] | ||
Cash Provided by Operating Activities | ||
Net cash provided by operating activities | 1,642 | 648 |
Cash Used in Investing Activities | ||
Capital expenditures | 0 | 0 |
Investment in Cronos common shares and warrant | 0 | |
Investment in consolidated subsidiaries | (1,947) | |
Other, net | (3) | 0 |
Net cash used in investing activities | (1,950) | 0 |
Cash Provided by (Used in) Financing Activities | ||
Repayment of short-term borrowings | (12,800) | |
Long-term debt issued | 16,265 | |
Repurchases of common stock | (151) | (513) |
Dividends paid on common stock | (1,502) | (1,257) |
Changes in amounts due to/from Altria and subsidiaries | 657 | 2,091 |
Cash dividends paid to parent | 0 | 0 |
Other | (120) | (20) |
Net cash provided by (used in) financing activities | 2,349 | 301 |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 2,041 | 949 |
Balance at beginning of period | 1,277 | 1,203 |
Balance at end of period | 3,318 | 2,152 |
Reportable Legal Entities [Member] | PM USA [Member] | ||
Cash Provided by Operating Activities | ||
Net cash provided by operating activities | 2,520 | 2,923 |
Cash Used in Investing Activities | ||
Capital expenditures | (9) | (1) |
Investment in Cronos common shares and warrant | 0 | |
Investment in consolidated subsidiaries | 0 | |
Other, net | 0 | 0 |
Net cash used in investing activities | (9) | (1) |
Cash Provided by (Used in) Financing Activities | ||
Repayment of short-term borrowings | 0 | |
Long-term debt issued | 0 | |
Repurchases of common stock | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Changes in amounts due to/from Altria and subsidiaries | (771) | (2,439) |
Cash dividends paid to parent | (1,737) | (446) |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | (2,508) | (2,885) |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 3 | 37 |
Balance at beginning of period | 100 | 62 |
Balance at end of period | 103 | 99 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Cash Provided by Operating Activities | ||
Net cash provided by operating activities | 166 | 189 |
Cash Used in Investing Activities | ||
Capital expenditures | (29) | (33) |
Investment in Cronos common shares and warrant | (1,831) | |
Investment in consolidated subsidiaries | 0 | |
Other, net | (78) | (7) |
Net cash used in investing activities | (1,938) | (40) |
Cash Provided by (Used in) Financing Activities | ||
Repayment of short-term borrowings | 0 | |
Long-term debt issued | 0 | |
Repurchases of common stock | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Changes in amounts due to/from Altria and subsidiaries | 2,061 | 348 |
Cash dividends paid to parent | (302) | (505) |
Other | (9) | (3) |
Net cash provided by (used in) financing activities | 1,750 | (160) |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | (22) | (11) |
Balance at beginning of period | 56 | 49 |
Balance at end of period | 34 | 38 |
Total Consolidating Adjustments [Member] | ||
Cash Provided by Operating Activities | ||
Net cash provided by operating activities | (2,039) | (951) |
Cash Used in Investing Activities | ||
Capital expenditures | 0 | 0 |
Investment in Cronos common shares and warrant | 0 | |
Investment in consolidated subsidiaries | 1,947 | |
Other, net | 0 | 0 |
Net cash used in investing activities | 1,947 | 0 |
Cash Provided by (Used in) Financing Activities | ||
Repayment of short-term borrowings | 0 | |
Long-term debt issued | 0 | |
Repurchases of common stock | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Changes in amounts due to/from Altria and subsidiaries | (1,947) | 0 |
Cash dividends paid to parent | 2,039 | 951 |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 92 | 951 |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 0 | 0 |
Balance at beginning of period | 0 | 0 |
Balance at end of period | $ 0 | $ 0 |
Uncategorized Items - a2019form
Label | Element | Value | [1] |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 68,000,000 | |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 57,000,000 | |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 35,000,000 | |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 43,000,000 | |
[1] | Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 12 . Contingencies . |