Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 15, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date (tagged on cover for 10K only) | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-08940 | ||
Entity Registrant Name | ALTRIA GROUP, INC. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 13-3260245 | ||
Entity Address, Address Line One | 6601 West Broad Street, | ||
Entity Address, City or Town | Richmond, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23230 | ||
City Area Code | 804 | ||
Local Phone Number | 274-2200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 73 | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,858,689,654 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for use in connection with its annual meeting of shareholders to be held on May 20, 2021, to be filed with the Securities and Exchange Commission on or about April 8, 2021, are incorporated by reference into Part III hereof. | ||
Amendment Tag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000764180 | ||
Common Stock, $0.33 1/3 par value | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.33 1/3 par value | ||
Trading Symbol | MO | ||
Security Exchange Name | NYSE | ||
1.000% Notes due 2023 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.000% Notes due 2023 | ||
Trading Symbol | MO23A | ||
Security Exchange Name | NYSE | ||
1.700% Notes due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.700% Notes due 2025 | ||
Trading Symbol | MO25 | ||
Security Exchange Name | NYSE | ||
2.200% Notes due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.200% Notes due 2027 | ||
Trading Symbol | MO27 | ||
Security Exchange Name | NYSE | ||
3.125% Notes due 2031 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.125% Notes due 2031 | ||
Trading Symbol | MO31 | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 4,945 | $ 2,117 |
Receivables | 137 | 152 |
Inventories: | ||
Leaf tobacco | 844 | 874 |
Other raw materials | 200 | 192 |
Work in process | 502 | 696 |
Finished product | 420 | 531 |
Inventory, net | 1,966 | 2,293 |
Other current assets | 69 | 262 |
Total current assets | 7,117 | 4,824 |
Property, plant and equipment, at cost: | ||
Land and land improvements | 348 | 353 |
Buildings and building equipment | 1,480 | 1,461 |
Machinery and equipment | 3,010 | 2,998 |
Construction in progress | 312 | 262 |
Property, plant and equipment, at cost | 5,150 | 5,074 |
Less accumulated depreciation | 3,138 | 3,075 |
Property, plant and equipment, net | 2,012 | 1,999 |
Goodwill | 5,177 | 5,177 |
Other intangible assets, net | 12,615 | 12,687 |
Investments in equity securities ($1,868 million and $303 million at December 31, 2020 and 2019, respectively, measured at fair value) | 19,529 | 23,581 |
Other assets | 964 | 1,003 |
Total Assets | 47,414 | 49,271 |
Liabilities | ||
Current portion of long-term debt | 1,500 | 1,000 |
Accounts payable | 380 | 325 |
Accrued liabilities: | ||
Marketing | 523 | 393 |
Settlement charges | 3,564 | 3,346 |
Other | 1,494 | 1,545 |
Dividends payable | 1,602 | 1,565 |
Total current liabilities | 9,063 | 8,174 |
Long-term debt | 27,971 | 27,042 |
Deferred income taxes | 4,532 | 5,083 |
Accrued pension costs | 551 | 473 |
Accrued postretirement health care costs | 1,951 | 1,797 |
Other liabilities | 381 | 345 |
Total liabilities | 44,449 | 42,914 |
Contingencies | ||
Redeemable noncontrolling interest | 40 | 38 |
Stockholders’ Equity | ||
Common stock, par value $0.33 1/3 per share (2,805,961,317 shares issued) | 935 | 935 |
Additional paid-in capital | 5,910 | 5,970 |
Earnings reinvested in the business | 34,679 | 36,539 |
Accumulated other comprehensive losses | (4,341) | (2,864) |
Cost of repurchased stock (947,542,152 shares at December 31, 2020 and 947,979,763 shares at December 31, 2019) | (34,344) | (34,358) |
Total stockholders’ equity attributable to Altria | 2,839 | 6,222 |
Noncontrolling interests | 86 | 97 |
Total stockholders’ equity | 2,925 | 6,319 |
Total Liabilities and Stockholders’ Equity | $ 47,414 | $ 49,271 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders’ Equity | ||
Investments, fair value | $ 1,868 | $ 303 |
Common stock, par value (usd per share) | $ 0.3333 | $ 0.3333 |
Common stock, shares issued (in shares) | 2,805,961,317 | 2,805,961,317 |
Cost of repurchased stock, shares (in shares) | 947,542,152 | 947,979,763 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Losses) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net revenues | $ 26,153 | $ 25,110 | $ 25,364 |
Cost of sales | 7,818 | 7,085 | 7,373 |
Excise taxes on products | 5,312 | 5,314 | 5,737 |
Gross profit | 13,023 | 12,711 | 12,254 |
Marketing, administration and research costs | 2,154 | 2,226 | 2,756 |
Asset impairment and exit costs | (4) | 159 | 383 |
Operating income | 10,873 | 10,326 | 9,115 |
Interest and other debt expense, net | 1,209 | 1,280 | 665 |
Net periodic benefit income, excluding service cost | (77) | (37) | (34) |
(Income) losses from equity investments | 111 | (1,725) | (890) |
Impairment of JUUL equity securities | 2,600 | 8,600 | 0 |
Loss on Cronos-related financial instruments | 140 | 1,442 | 0 |
Loss on ABI/SABMiller business combination | 0 | 0 | 33 |
Earnings before income taxes | 6,890 | 766 | 9,341 |
Provision for income taxes | 2,436 | 2,064 | 2,374 |
Net earnings (losses) | 4,454 | (1,298) | 6,967 |
Net (earnings) losses attributable to noncontrolling interests | 13 | 5 | (4) |
Net earnings (losses) attributable to Altria | $ 4,467 | $ (1,293) | $ 6,963 |
Per share data: | |||
Basic earnings (losses) per share attributable to Altria (in usd per share) | $ 2.40 | $ (0.70) | $ 3.69 |
Diluted earnings (losses) per share attributable to Altria (in usd per share) | $ 2.40 | $ (0.70) | $ 3.68 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Losses) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (losses) | $ 4,454 | $ (1,298) | $ 6,967 |
Other comprehensive earnings (losses), net of deferred income taxes: | |||
Benefit plans | (228) | (24) | 68 |
ABI | (1,245) | (319) | (309) |
Currency translation adjustments and other | (4) | 26 | (1) |
Other comprehensive earnings (losses), net of deferred income taxes | (1,477) | (317) | (242) |
Comprehensive earnings (losses) | 2,977 | (1,615) | 6,725 |
Comprehensive (earnings) losses attributable to noncontrolling interests | 13 | 5 | (4) |
Comprehensive earnings (losses) attributable to Altria | $ 2,990 | $ (1,610) | $ 6,721 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash Provided by (Used in) Operating Activities | ||||||||||||
Net earnings (losses) | $ 1,922 | $ 1,550 | $ (1,814) | $ 1,121 | $ 4,454 | $ (1,298) | $ 6,967 | |||||
Adjustments to reconcile net earnings (losses) to operating cash flows: | ||||||||||||
Depreciation and amortization | 257 | 226 | 227 | |||||||||
Deferred income tax benefit | (164) | (95) | (57) | $ (57) | ||||||||
(Income) losses from equity investments | 111 | (1,725) | (890) | |||||||||
Loss on ABI/SABMiller business combination | 0 | 0 | 33 | |||||||||
Dividends from ABI | 108 | 396 | 657 | |||||||||
Loss on Cronos-related financial instruments | 140 | 1,442 | 0 | |||||||||
Impairment of JUUL equity securities | 0 | 0 | 4,100 | 0 | 2,600 | 8,600 | 0 | |||||
Asset impairment and exit costs, net of cash paid | (51) | 41 | 354 | |||||||||
Cash effects of changes: | ||||||||||||
Receivables | 20 | (8) | 0 | |||||||||
Inventories | 2 | 42 | (129) | |||||||||
Accounts payable | 53 | (79) | 27 | |||||||||
Income taxes | (29) | 89 | 218 | |||||||||
Accrued liabilities and other current assets | (15) | 11 | (21) | |||||||||
Accrued settlement charges | 218 | (108) | 980 | |||||||||
Pension plan contributions | (33) | (56) | (41) | |||||||||
Pension provisions and postretirement, net | (49) | (52) | (13) | |||||||||
Other, net | [1] | 763 | 411 | 79 | ||||||||
Net cash provided by (used in) operating activities | 8,385 | 7,837 | 8,391 | |||||||||
Cash Provided by (Used in) Investing Activities | ||||||||||||
Capital expenditures | (231) | (246) | (238) | |||||||||
Acquisitions of businesses and assets | 0 | (421) | (15) | |||||||||
Investment in JUUL | 0 | (5) | (12,800) | |||||||||
Investment in Cronos | 0 | (1,899) | 0 | |||||||||
Other, net | 88 | 173 | 65 | |||||||||
Net cash (used in) provided by investing activities | (143) | (2,398) | (12,988) | |||||||||
Cash Provided by (Used in) Financing Activities | ||||||||||||
Proceeds from short-term borrowings | 3,000 | 0 | 12,800 | |||||||||
Repayment of short-term borrowings | (3,000) | (12,800) | 0 | |||||||||
Long-term debt issued | 1,993 | 16,265 | 0 | |||||||||
Long-term debt repaid | (1,000) | (1,144) | (864) | |||||||||
Repurchases of common stock | 0 | (845) | (1,673) | |||||||||
Dividends paid on common stock | (6,290) | (6,069) | (5,415) | |||||||||
Other, net | (99) | (119) | (132) | |||||||||
Net cash used in financing activities | (5,396) | (4,712) | 4,716 | |||||||||
Cash, cash equivalents and restricted cash: | ||||||||||||
Increase (decrease) | 2,846 | 727 | 119 | |||||||||
Balance at beginning of year | 2,160 | 1,433 | 2,160 | 1,433 | 1,314 | |||||||
Balance at end of year | 5,006 | 2,160 | 5,006 | 2,160 | 1,433 | 1,314 | ||||||
Cash paid: Interest | 1,246 | 991 | 704 | |||||||||
Cash Paid: Income taxes | 2,616 | 1,977 | 2,307 | |||||||||
Cash and cash equivalents | $ 4,945 | $ 2,117 | $ 1,333 | |||||||||
Restricted cash included in other current assets | [2] | 1 | 0 | 57 | ||||||||
Restricted cash included in other assets | [2] | 60 | 43 | 43 | ||||||||
Cash, cash equivalents and restricted cash | $ 5,006 | $ 2,160 | $ 2,160 | $ 1,433 | $ 5,006 | $ 1,433 | $ 1,314 | $ 1,314 | $ 5,006 | $ 2,160 | $ 1,433 | |
[1] | 2020 reflects inventory-related amounts associated with the Wine Business Strategic Reset. For further discussion, see Note 5 . Asset Impairment, Exit and Implementation Costs . | |||||||||||
[2] | Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 18. Contingencies . |
Consolidated Statements of Stoc
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] | ||||||||
Reclassification due to adoption of ASU 2018-02 | [1] | 408 | (408) | |||||
Net earnings (losses) | [2] | 6,963 | 6,963 | |||||
Other comprehensive earnings (losses), net of deferred income taxes | (242) | (242) | ||||||
Stock award activity | 22 | 9 | 13 | |||||
Cash dividends declared | (5,660) | (5,660) | ||||||
Repurchases of common stock | (1,673) | (1,673) | ||||||
Other | (1) | (1) | ||||||
Ending balances 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 (losses) | [2] | (1,300) | (1,293) | (7) | ||||
Other comprehensive earnings (losses), net of deferred income taxes | (317) | (317) | ||||||
Stock award activity | 20 | 9 | 11 | |||||
Cash dividends declared | (6,130) | (6,130) | ||||||
Repurchases of common stock | (845) | (845) | ||||||
Issuance of noncontrolling interest in Helix | 88 | 88 | ||||||
Other | 14 | 14 | ||||||
Ending balances at Dec. 31, 2019 | 6,319 | 935 | 5,970 | 36,539 | (2,864) | (34,358) | 97 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | [2] | 4,451 | 4,467 | (16) | ||||
Other comprehensive earnings (losses), net of deferred income taxes | (1,477) | (1,477) | ||||||
Stock award activity | 27 | 13 | 14 | |||||
Cash dividends declared | (6,327) | (6,327) | ||||||
Other | (68) | (73) | 5 | |||||
Ending balances at Dec. 31, 2020 | $ 2,925 | $ 935 | $ 5,910 | $ 34,679 | $ (4,341) | $ (34,344) | $ 86 | |
[1] | In 2018, Altria adopted Accounting Standards Update (“ASU”) 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), and reclassified the stranded income tax effects of the 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) on items with accumulated other comprehensive losses to earnings reinvested in the business. | |||||||
[2] | Amounts attributable to noncontrolling interests for each of the years ended December 31, 2020, 2019 and 2018 exclude net earnings of $3 million, $2 million and $4 million, respectively, due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars, which is reported in the mezzanine equity section on the consolidated balance sheets at December 31, 2020, 2019 and 2018. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Net income (loss) attributable to redeemable noncontrolling interest | $ 3 | $ 2 | $ 4 |
Cash dividends declared (USD per share) | $ 3.40 | $ 3.28 | $ 3 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation When used in these notes, the term “Altria” refers to Altria Group, Inc. and its subsidiaries, unless the context requires otherwise. ▪ Background: At December 31, 2020, 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 (including super premium cigarettes previously manufactured and sold by Sherman Group Holdings, LLC and its subsidiaries (“Nat Sherman”); 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; 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 moist smokeless tobacco products (“MST”), snus products and wine; and Philip Morris Capital Corporation (“PMCC”), which maintains a portfolio of finance assets, substantially all of which are leveraged leases. In addition, at December 31, 2020, Altria owned an 80% interest in Helix Innovations LLC (“Helix”), which is engaged in the manufacture and sale of oral nicotine pouches. 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 December 31, 2020, Altria’s significant wholly owned subsidiaries were not limited by contractual obligations in their ability to pay cash dividends or make other distributions with respect to their equity interests. In 2019, Helix acquired Burger Söhne Holding and its subsidiaries as well as certain affiliated companies (the “Burger Group”) that are engaged in the manufacture and sale of on! oral nicotine pouches. At closing, Altria owned an 80% interest in Helix, for which Altria paid $353 million in 2019. The purchase price allocation has been completed, and there were no changes subsequent to the acquisition date. At December 31, 2020, Altria’s investments in equity securities consisted of Anheuser-Busch InBev SA/NV (“ABI”), Cronos Group Inc. (“Cronos”) and JUUL Labs, Inc. (“JUUL”). Altria accounts for its investments in ABI and Cronos under the equity method of accounting using a one-quarter lag. Altria accounts for its equity investment in JUUL under the fair value option. At December 31, 2020, Altria had a 10.0% ownership interest in ABI. Altria receives cash dividends on its interest in ABI and will continue to do so as long as ABI pays dividends. In December 2018, Altria made an investment in JUUL by purchasing shares of non-voting convertible common stock of JUUL representing a 35% ownership interest. JUUL is engaged in the manufacture and sale of e-vapor products in the U.S. and certain international markets. In November 2020, Altria exercised its rights to convert its non-voting shares to voting shares. Altria does not currently intend to exercise its additional governance rights obtained upon share conversion, including the right to elect directors to JUUL’s board, or to vote its JUUL shares other than as a passive investor, pending the outcome of the U.S. Federal Trade Commission (“FTC”) administrative complaint. At December 31, 2020, Altria had a 35% ownership interest in JUUL. In March 2019, Altria acquired a 45% ownership interest in Cronos, a global cannabinoid company headquartered in Toronto, Canada. At December 31, 2020, Altria had a 43.5% ownership interest in Cronos. For further discussion of Altria’s investments in equity securities, see Note 6. Investments in Equity Securities . ▪ Basis of Presentation: The consolidated financial statements include Altria, as well as its wholly owned and majority-owned subsidiaries. Investments in equity securities in which Altria has the ability to exercise significant influence over the operating and financial policies of the investee are accounted for under the equity method of accounting or the fair value option. Investments in equity securities that Altria does not have the ability to exercise significant influence over the operating and financial policies of the investee are accounted for as an investment in an equity security. All intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and expenses during the reporting periods. Significant estimates and assumptions include, among other things, pension and benefit plan assumptions, lives and valuation assumptions for goodwill and other intangible assets, impairment and fair value evaluations for equity investments, marketing programs, income taxes, and the estimated residual values of finance leases. Actual results could differ from those estimates. In the first quarter of 2020, Altria renamed its smokeless products segment as the oral tobacco products segment. Certain immaterial prior year amounts have been adjusted to conform with the current year’s presentation. During the second quarter of 2020, Altria began complying early with U.S. Securities and Exchange Commission (“SEC”) Regulation S-X Rules 13-01 and 13-02 regarding the financial disclosure requirements for registered debt securities with guarantees. In October 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-09, Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 , to reflect changes made to its disclosure rules on registered debt securities with guarantees. The new rules replace the previously required condensed consolidating financial information with summarized financial information of the issuer and the guarantor and, among other things, require expanded qualitative disclosures. Altria has elected to provide this information in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section in its Annual Report on Form 10-K as permitted by the new rules. During the fourth quarter of 2020, Altria began complying early with the SEC’s amendments to the financial disclosures rules regarding acquired and disposed businesses. Among other changes, the amendments impact SEC rules relating to the definition of “significant” subsidiaries and the requirements related to the provision of financial statements for “significant” acquisitions. On January 1, 2020, Altria adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments and all related ASU amendments (collectively “ASU No. 2016-13”). This 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 adoption of ASU No. 2016-13 did not have a material impact on Altria’s consolidated financial statements. Additionally, on January 1, 2020, Altria adopted ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU No. 2018-15”). This 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 adoption of ASU No. 2018-15 did not have a material impact on Altria’s consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies ▪ Cash and Cash Equivalents: Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. ▪ Depreciation, Amortization and Impairment Testing: Property, plant and equipment are stated at historical costs and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods up to 25 years, and buildings and building improvements over periods up to 50 years. Definite-lived intangible assets are amortized over their estimated useful lives up to 25 years. Altria reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable. Altria performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, Altria groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If Altria determines that an impairment exists, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Altria also reviews the estimated remaining useful lives of long-lived assets whenever events or changes in business circumstances indicate the lives may have changed. Altria conducts a required annual review of goodwill and indefinite-lived intangible assets for potential impairment, and more frequently if an event occurs or circumstances change that would require Altria to perform an interim review. Altria has the option of first performing a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test. If necessary, Altria will perform a single step quantitative impairment test. Additionally, Altria has the option to unconditionally bypass the qualitative assessment and perform a single step quantitative assessment. If the carrying value of a reporting unit that includes goodwill exceeds its fair value, which is determined using discounted cash flows, goodwill is considered impaired. The amount of impairment loss is measured as the difference between the carrying value and the fair value of a reporting unit, but is limited to the total amount of goodwill allocated to a reporting unit. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, which is determined using discounted cash flows, the intangible asset is considered impaired and is reduced to fair value in the period identified. ▪ Derivative Financial Instruments: Altria enters into derivatives 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. Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Derivative financial instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges at the inception of the contracts. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recorded in the consolidated statements of earnings (losses) each period. For cash flow hedges, changes in the fair value of the derivative are recorded each period in accumulated other comprehensive earnings (losses) and are reclassified to the consolidated statements of earnings (losses) in the same periods in which operating results are affected by the respective hedged item. For net investment hedges, changes in the fair value of the derivative or foreign currency transaction gains or losses on a nonderivative hedging instrument are recorded in accumulated other comprehensive earnings (losses) to offset the change in the value of the net investment being hedged. Such amounts remain in accumulated other comprehensive earnings (losses) until the complete or substantially complete liquidation of the underlying foreign operations occurs or, for investments in foreign entities accounted for under the equity method of accounting, Altria’s economic interest in the underlying foreign entity decreases. Cash flows from hedging instruments are classified in the same manner as the respective hedged item in the consolidated statements of cash flows. To qualify for hedge accounting, the hedging relationship, both at inception of the hedge and on an ongoing basis, is expected to be highly effective at offsetting changes in the fair value of the hedged risk during the period that the hedge is designated. Altria formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, the strategy for undertaking the hedge transaction and method for assessing hedge effectiveness. Additionally, for qualified hedges of forecasted transactions, if it becomes probable that a forecasted transaction will not occur, the hedge would no longer be considered effective and all of the derivative gains and losses would be recorded in the consolidated statement of earnings (losses) in the current period. For financial instruments that are not designated as hedging instruments or do not qualify for hedge accounting, changes in fair value are recorded in the consolidated statement of earnings (losses) each period. Altria does not enter into or hold derivative financial instruments for trading or speculative purposes. ▪ Employee Benefit Plans: Altria provides a range of benefits to certain employees and retired employees, including pension, postretirement health care and postemployment benefits. Altria records annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions as to discount rates, assumed rates of return on plan assets, mortality, compensation increases, turnover rates and health care cost trend rates. Altria recognizes the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheets and records as a component of other comprehensive earnings (losses), net of deferred income taxes, the gains or losses and prior service costs or credits that have not been recognized as components of net periodic benefit cost. The gains or losses and prior service costs or credits recorded as components of other comprehensive earnings (losses) are subsequently amortized into net periodic benefit cost in future years. ▪ Environmental Costs: Altria is subject to laws and regulations relating to the protection of the environment. Altria provides for expenses associated with environmental remediation obligations on an undiscounted basis when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change. Compliance with environmental laws and regulations, including the payment of any remediation and compliance costs or damages and the making of related expenditures, has not had, and is not expected to have, a material adverse effect on Altria’s consolidated results of operations, capital expenditures, financial position or cash flows. See Note 18. Contingencies - Environmental Regulation . ▪ Fair Value Measurements: Altria measures certain assets and liabilities at fair value. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Altria uses a fair value hierarchy, which gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs used to measure fair value are: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. ▪ Guarantees: Altria recognizes a liability for the fair value of the obligation of qualifying guarantee activities. See Note 18 . Contingencies for a further discussion of guarantees. ▪ Income Taxes: Significant judgment is required in determining income tax provisions and in evaluating tax positions. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Altria records a valuation allowance when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Altria recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Altria recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes in its consolidated statements of earnings (losses). ▪ Inventories: The last-in, first-out (“LIFO”) method is used to determine the cost of substantially all tobacco inventories. The cost of the remaining inventories is determined using the first-in, first-out (“FIFO”) and average cost methods. Inventories that are measured using the LIFO method are stated at the lower of cost or market. Inventories that are measured using the FIFO and average cost methods are stated at the lower of cost and net realizable value. It is a generally recognized industry practice to classify leaf tobacco and wine inventories as current assets although part of such inventory, because of the duration of the curing and aging process, ordinarily would not be used within one year. The cost of approximately 59% and 56% of inventories at December 31, 2020 and 2019, respectively, was determined using the LIFO method. The stated LIFO amounts of inventories were approximately $0.6 billion lower than the current cost of inventories at December 31, 2020 and 2019. ▪ Investments in Equity Securities: Investments in equity securities in which Altria has the ability to exercise significant influence over the operating and financial policies of the investee are accounted for under the equity method of accounting or the fair value option. The election of the fair value option is irrevocable and is made on an investment by investment basis. Altria elected to account for its investments in ABI and Cronos under the equity method of accounting. Altria’s share of equity earnings (losses) and other adjustments associated with these equity investments are included in income (losses) from equity investments in the consolidated statements of earnings (losses). The carrying value for each of Altria’s equity investments in ABI and Cronos is reported in investments in equity securities on the consolidated balance sheets. Equity method investments accounted for under the equity method of accounting are reported at cost and adjusted each period for Altria’s share of income (loss) and dividends paid, if any. Altria reports its share of ABI’s and Cronos’s results using a one-quarter lag because results are not available in time for Altria to record them in the concurrent period. Altria reviews its equity investments accounted for under the equity method of accounting for impairment by comparing the fair value of each of its investments to their carrying value. If the carrying value of an investment exceeds its fair value and the loss in value is other than temporary, the investment is considered impaired and reduced to fair value, and the impairment is recognized in the period identified. The factors used to make this determination include the duration and magnitude of the fair value decline, the financial condition and near-term prospects of the investee, and Altria’s intent and ability to hold its investment until recovery. Following Share Conversion (as defined in Note 6. Investments in Equity Securities ) in the fourth quarter of 2020, Altria elected to account for its equity investment in JUUL under the fair value option. Under this option, any cash dividends received and any changes in the fair value of the equity investment in JUUL, which is calculated quarterly using level 3 fair value measurements, are included in income (losses) from equity investments in the consolidated statements of earnings (losses). The fair value of the equity investment in JUUL is included in investments in equity securities on the consolidated balance sheet at December 31, 2020. Prior to Altria exercising its right to convert its non-voting shares to voting shares, Altria accounted for its investment in JUUL as an investment in an equity security. Since the JUUL shares did not have a readily determinable fair value, Altria elected to measure its investment in JUUL at its cost minus 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. ▪ Litigation Contingencies and Costs: Altria and its subsidiaries record provisions in the consolidated financial statements for pending litigation when it is determined that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Litigation defense costs are expensed as incurred and included in marketing, administration and research costs in the consolidated statements of earnings (losses). See Note 18. Contingencies . ▪ Marketing Costs: Altria’s businesses promote their products with consumer incentives, trade promotions and consumer engagement programs. These consumer incentive and trade promotion activities, which include discounts, coupons, rebates, in-store display incentives and volume-based incentives, do not create a distinct deliverable and are, therefore, recorded as a reduction of revenues. Consumer engagement program payments are made to third parties. Altria’s businesses expense these consumer engagement programs, which include event marketing, as incurred and such expenses are included in marketing, administration and research costs in Altria’s consolidated statements of earnings (losses). For interim reporting purposes, Altria’s businesses charge consumer engagement programs and certain consumer incentive expenses to operations as a percentage of sales, based on estimated sales and related expenses for the full year. ▪ Revenue Recognition: Altria’s businesses generate substantially all of their revenue from sales contracts with customers. While Altria’s businesses enter into separate sales contracts with each customer for each product type, all sales contracts are similarly structured. These contracts create an obligation to transfer product to the customer. All performance obligations are satisfied within one year; therefore, costs to obtain contracts are expensed as incurred and unsatisfied performance obligations are not disclosed. There is no financing component because Altria’s businesses expect, at contract inception, that the period between when Altria’s businesses transfer product to the customer and when the customer pays for that product will be one year or less. Altria’s businesses define net revenues as revenues, which include excise taxes and shipping and handling charges billed to customers, net of cash discounts for prompt payment, sales returns (also referred to as returned goods) and sales incentives. Altria’s businesses exclude from the transaction price sales taxes and value-added taxes imposed at the time of sale (which do not include excise taxes on cigarettes, cigars, smokeless tobacco or wine billed to customers). Altria’s businesses recognize revenues from sales contracts with customers upon shipment of goods when control of such products is obtained by the customer. Altria’s businesses determine that a customer obtains control of the product upon shipment when title of such product and risk of loss transfers to the customer. Altria’s businesses account for shipping and handling costs as fulfillment costs and such amounts are classified as part of cost of sales in Altria’s consolidated statements of earnings (losses). Altria’s businesses record an allowance for returned goods, based principally on historical volume and return rates, which is included in other accrued liabilities on Altria’s consolidated balance sheets. Altria’s businesses record sales incentives, which consist of consumer incentives and trade promotion activities, as a reduction to revenues (a portion of which is based on amounts estimated as being due to wholesalers, retailers and consumers at the end of a period) based principally on historical volume, utilization and redemption rates. Expected payments for sales incentives are included in accrued marketing liabilities on Altria’s consolidated balance sheets. Payment terms vary depending on product type. Altria’s businesses consider payments received in advance of product shipment as deferred revenue, which is included in other accrued liabilities on Altria’s consolidated balance sheets until revenue is recognized. PM USA receives payment in advance of a customer obtaining control of the product. USSTC receives substantially all payments within one business day of the customer obtaining control of the product. Ste. Michelle receives substantially all payments from customers within 45 days of the customer obtaining control of the product. Amounts due from customers are included in receivables on Altria’s consolidated balance sheets. ▪ 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 2019-12 Simplifying the Accounting for Income Taxes (Topic 740) The guidance removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Altria’s adoption of this guidance is not expected to have a material impact on its consolidated financial statements. ASU 2020-01 Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Altria’s adoption of this guidance is not expected to have a material impact on its consolidated financial statements. ASU 2020-06 Accounting for Convertible Instruments and Contracts in an Entity ’ s Own Equity The guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Key provisions of the guidance include reducing the number of accounting models, simplifying the earnings per share calculations and expanding the disclosures related to convertible instruments. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Altria is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
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 15. 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 consolidated balance sheets. Cash discounts at December 31, 2020 and 2019, were de minimis 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 consolidated balance sheets until control of such products is obtained by the customer. Deferred revenue was $301 million and $362 million at December 31, 2020 and 2019, respectively. When cash is received in advance of product shipment, Altria’s businesses satisfy their performance obligations within three days of receiving payment. At December 31, 2020 and 2019, there were no differences between amounts recorded as deferred revenue and amounts subsequently recognized as revenue. Receivables were $137 million and $152 million at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, 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 consolidated balance sheets. While all of Altria’s tobacco operating companies sell tobacco products with dates relative to freshness as printed on product packaging, it is USSTC’s policy to accept authorized sales returns from its customers for products that have passed such dates due to the limited shelf life of USSTC’s MST and snus products. 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 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. These estimates primarily include estimated wholesale to retail sales volume and historical acceptance rates. Actual payments will differ from estimated payments to the extent actual results differ from estimated assumptions. Differences between actual and estimated payments are reflected in the period such information becomes available. These differences, if any, have not had a material impact on Altria’s consolidated financial statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill and other intangible assets, net, by segment were as follows: Goodwill Other Intangible Assets, net (in millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Smokeable products $ 99 $ 99 $ 3,044 $ 3,071 Oral tobacco products 5,078 5,078 9,164 9,196 Wine — — 237 238 Other — — 170 182 Total $ 5,177 $ 5,177 $ 12,615 $ 12,687 At December 31, 2020 and 2019, the accumulated impairment losses related to goodwill were $185 million. Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Indefinite-lived intangible assets $ 11,676 $ — $ 11,676 $ — Definite-lived intangible assets 1,275 336 1,275 264 Total other intangible assets $ 12,951 $ 336 $ 12,951 $ 264 At December 31, 2020, indefinite-lived intangible assets consist substantially of trademarks from Altria’s 2009 acquisition of UST ($9.0 billion) and 2007 acquisition of Middleton ($2.6 billion). Definite-lived intangible assets, which consist primarily of intellectual property, customer relationships and certain cigarette trademarks, are amortized over a weighted-average period of 20 years. Pre-tax amortization expense for definite-lived intangible assets during the years ended December 31, 2020, 2019 and 2018, was $72 million, $44 million and $38 million, respectively. Annual amortization expense for each of the next five years is estimated to be approximately $70 million, assuming no additional transactions occur that require the amortization of intangible assets. The changes in goodwill and net carrying amount of intangible assets were as follows: 2020 2019 (in millions) Goodwill Other Intangible Assets, net Goodwill Other Intangible Assets, net Balance at January 1 $ 5,177 $ 12,687 $ 5,196 $ 12,279 Changes due to: Acquisitions (1) — — 55 451 Asset impairment — — (74) — Amortization — (72) — (43) Balance at December 31 $ 5,177 $ 12,615 $ 5,177 $ 12,687 (1) Substantially all of the 2019 changes reflect Helix’s acquisition of the Burger Group, which held assets consisting primarily of intellectual property. For further discussion, see Note 1. Background and Basis of Presentation . During 2020, Altria’s annual impairment test of goodwill and indefinite-lived intangible assets resulted in no impairment charges. During 2019, upon completion of Altria’s annual impairment testing of goodwill and other indefinite-lived intangible assets, Altria concluded that goodwill of $74 million in the wine segment was fully impaired as the wine reporting unit was impacted by a slowing growth rate in the premium wine category and higher inventories. During 2018, Altria recorded goodwill and other intangible asset impairment charges of $111 million and $44 million, respectively, related to Altria’s decision in the fourth quarter of 2018 to refocus its companies’ innovative product efforts, which included the discontinuation of production and distribution of all e-vapor products. In addition, during 2018, upon completion of Altria’s annual impairment testing, Altria concluded that the $54 million carrying value of the Columbia Crest trademark in the wine segment was fully impaired as Columbia Crest has been negatively impacted by an accelerated decline in the $7 to $10 premium wine segment, increased competition and reduction in trade support. |
Asset Impairment, Exit and Impl
Asset Impairment, Exit and Implementation Costs | 12 Months Ended |
Dec. 31, 2020 | |
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 (income) consisted of the following: (in millions) Asset Impairment Implementation Costs Total For the year ended December 31, 2020 2019 2018 2020 (1) 2019 (2) 2018 (1) 2020 2019 2018 Smokeable products $ 2 $ 59 $ 79 $ — $ 33 $ 1 $ 2 $ 92 $ 80 Oral tobacco products (5) 9 20 — 5 3 (5) 14 23 Wine (3) — 76 54 411 — — 411 76 54 All other — 14 227 — (10) 63 — 4 290 General corporate (1) 1 3 — — — (1) 1 3 Total (4) 159 383 411 28 67 407 187 450 Plus amounts included in net periodic benefit (income) cost, excluding service cost (4) — 29 3 — — — — 29 3 Total $ (4) $ 188 $ 386 $ 411 $ 28 $ 67 $ 407 $ 216 $ 453 (1) Included in cost of sales in Altria’s consolidated statements of earnings (losses). (2) Included in cost of sales ($2 million) and marketing, administration and research costs ($26 million) in Altria’s consolidated statement of earnings (losses). (3) Includes impairment of goodwill for the wine reporting unit in 2019 and impairment of the Columbia Crest trademark in 2018. See Note 4. Goodwill and Other Intangible Assets, net . (4) Represents settlement and curtailment costs. See Note 16. Benefit Plans . Implementation costs for 2020 were related to Ste. Michelle’s strategic reset, as discussed below. The 2019 pre-tax asset impairment, exit and implementation costs were related to the cost reduction program and the refocus of innovative product efforts discussed below, and the goodwill impairment for the wine reporting unit. Substantially all of the 2018 pre-tax asset impairment, exit and implementation costs were related to the refocus of innovative product efforts and the cost reduction program discussed below, and the impairment of the Columbia Crest trademark. The movement in the restructuring liabilities, substantially all of which were severance liabilities, for the years ended December 31, 2020 and 2019 was as follows: (in millions) Balances at December 31, 2018 $ 155 Charges 59 Cash spent (147) Balances at December 31, 2019 67 Cost reversals, net (4) Cash spent (47) Balances at December 31, 2020 $ 16 ▪ Wine Business Strategic Reset: Evolving adult consumer preferences have posed strategic challenges for Ste. Michelle, which has seen slowing growth in the wine category and increased inventory levels in recent periods. Against a backdrop of product volume demand uncertainty and long-term, non-cancelable grape purchase commitments, which have been further negatively impacted by the COVID-19 pandemic (including economic uncertainty and government actions that restrict direct-to-consumer sales and on-premise sales), Ste. Michelle experienced additional increases in inventory levels that, in 2020, significantly exceeded long-term forecasted demand. During the year ended December 31, 2020, Ste. Michelle recorded pre-tax charges of $411 million, which were included in cost of sales in Altria’s consolidated statement of earnings (losses). The charges consisted primarily of the following: (i) write-off of inventory ($292 million recorded in the first quarter of 2020) as Ste. Michelle no longer believed that the benefit of the blending and production plans for its inventory outweighs inventory carrying cost given the reduced product volume demand; (ii) estimated losses on future non-cancelable grape purchase commitments that Ste. Michelle believed no longer have a future economic benefit ($100 million recorded in the first quarter of 2020); and (iii) inventory disposal costs and other charges ($19 million). The non-cancelable grape purchase commitments will continue to require cash payments as grape commitments are fulfilled over the next four years. Given such uncertainty in economic conditions and product volume demand, as well as long-term supply-side contractual challenges, Altria and Ste. Michelle undertook a review of the wine business. As a result, Altria and Ste. Michelle implemented a strategic reset in order to maximize Ste. Michelle’s profitability and achieve improved long-term cash-flow generation. This strategic reset includes: (i) an updated approach to forecasting demand; (ii) supply chain optimization; (iii) SKU rationalization to reduce the number of products and eliminate underperforming brands; and (iv) streamlining operations by reducing future capital expenditures, working capital requirements and ongoing operating costs. ▪ Refocus of Innovative Product Efforts: During the fourth quarter of 2018, Altria refocused its companies’ innovative product efforts, which included the discontinuation of production and distribution of all e-vapor products . During the year ended December 31, 2019, Altria incurred pre-tax charges of $9 million, consisting of asset impairment, exit and implementation costs. During 2018, Altria incurred pre-tax charges of $272 million, consisting of asset impairment and exit costs of $209 million primarily related to the impairment of goodwill and other intangible assets and other charges of $63 million related to inventory write-offs and accelerated depreciation. The pre-tax charges related to the refocus of innovative product efforts have been completed. The majority of the charges related to these efforts did not result in cash payments. ▪ Cost Reduction Program: |
Investments in Equity Securitie
Investments in Equity Securities | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Equity Securities | Investments in Equity Securities Altria’s investments at December 31, 2020 and 2019 consisted of the following: Carrying Amount (in millions) December 31, 2020 December 31, 2019 ABI $ 16,651 $ 18,071 JUUL 1,705 4,205 Cronos (1) 1,173 1,305 Total $ 19,529 $ 23,581 (1) December 31, 2020 included Altria’s equity method investment in Cronos ($1,010 million), the Cronos warrant ($139 million) and the Fixed-price Preemptive Rights ($24 million), (collectively, “Investment in Cronos”). The Investment in Cronos at December 31, 2019 included Altria’s equity method investment in Cronos ($1,002 million), the Cronos warrant ($234 million) and the Fixed-price Preemptive Rights ($69 million). See below for further discussion. Income (losses) from equity investments accounted for under the equity method of accounting and fair value option for the years ended December 31, 2020, 2019 and 2018 consisted of the following: (in millions) 2020 2019 2018 ABI (1) $ (223) $ 1,229 $ 890 Cronos 12 496 — Income (losses) from investments under equity method of accounting (211) 1,725 890 JUUL 100 — — Income (losses) from equity investments $ (111) $ 1,725 $ 890 (1) During 2020, ABI amounts recorded by Altria included pre-tax losses associated with its share of ABI’s (i) mark-to-market losses on certain ABI financial instruments associated with its share commitments, (ii) completion of the sale of its Australia subsidiary and (iii) goodwill impairment charge associated with its Africa businesses. These amounts included Altria’s share of amounts recorded by ABI, and may also include additional adjustments related to (i) conversion from international financial reporting standards to GAAP and (ii) adjustments to Altria’s investment required under the equity method of accounting. Investment in ABI At December 31, 2020, Altria had a 10.0% ownership interest in ABI, consisting of 185 million restricted shares of ABI (the “Restricted Shares”) and 12 million ordinary shares of ABI. Altria’s ownership percentage decreased from 10.1% at December 31, 2019 due to the issuance of additional shares by ABI. The Restricted Shares: ▪ are unlisted and not admitted to trading on any stock exchange; ▪ are subject to a five-year lock-up (subject to limited exceptions) ending October 10, 2021; ▪ are convertible into ordinary shares of ABI on a one-for-one basis after the end of this five-year lock-up period; ▪ rank equally with ordinary shares of ABI with regards to dividends and voting rights; and ▪ have director nomination rights with respect to ABI. Altria accounts for its investment in ABI under the equity method of accounting because Altria has the ability to exercise significant influence over the operating and financial policies of ABI, including having active representation on ABI’s board of directors and certain ABI board committees. Through this representation, Altria participates in ABI policy making processes. Altria reports its share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for Altria to record them in the concurrent period. Summary financial data of ABI is as follows: For Altria’s Year Ended December 31, (in millions) 2020 (1) 2019 (1) 2018 (1) Net revenues $ 48,294 $ 54,187 $ 55,500 Gross profit $ 28,438 $ 33,735 $ 34,986 Earnings from continuing operations $ 4,265 $ 10,530 $ 9,020 Net earnings $ 4,266 $ 10,530 $ 9,020 Net earnings attributable to ABI $ 3,323 $ 9,189 $ 7,641 At September 30, (in millions) 2020 (1) 2019 (1) Current assets $ 28,672 $ 27,353 Long-term assets $ 185,106 $ 199,591 Current liabilities $ 34,884 $ 36,819 Long-term liabilities $ 117,400 $ 119,025 Noncontrolling interests $ 8,459 $ 8,765 (1) Reflects the one-quarter lag. At December 31, 2020, Altria’s carrying value of its equity investment in ABI exceeded its share of ABI’s net assets attributable to equity holders of ABI by approximately $11.3 billion. Substantially all of this difference is comprised of goodwill and other indefinite-lived intangible assets (consisting primarily of trademarks). The fair value of Altria’s equity investment in ABI is based on: (i) unadjusted quoted prices in active markets for ABI’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. If 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 ABI at December 31, 2020 and 2019 was $13.8 billion (carrying value of $16.7 billion) and $16.1 billion (carrying value of $18.1 billion), respectively, which was less than its carrying value by approximately 17% and 11%, respectively. In October 2019, the fair value of Altria’s equity investment in ABI declined below its carrying value and has not recovered. Altria has evaluated the factors related to the fair value decline, including the recent impact on the fair value of ABI’s shares during the COVID-19 pandemic, which has negatively impacted ABI’s business. Altria has evaluated the duration and magnitude of the fair value decline at December 31, 2020, ABI’s financial condition and near-term prospects, and Altria’s intent and ability to hold its investment in ABI until recovery. Altria concluded, both at December 31, 2020 and 2019, that the decline in fair value of its investment in ABI below its carrying value was temporary and, therefore, no impairment was recorded. In December 2020, ABI completed the issuance of a minority stake in its U.S.-based metal container plants for $3 billion in cash proceeds. Consistent with the one-quarter lag for reporting ABI’s results in Altria’s financial results, in the first quarter of 2021, Altria will record the financial statement impact, which has not yet been determined but may be material, related to this transaction. Investment in JUUL In December 2018, Altria made an investment in JUUL for $12.8 billion. In exchange for the investment, Altria received a 35% economic interest in JUUL through non-voting shares, which were convertible at Altria’s election into voting shares (“Share Conversion”), and for no additional payment, a security convertible into additional non-voting or voting shares, as applicable, upon settlement or exercise of certain JUUL convertible securities (the “JUUL Transaction”). Altria received a broad preemptive right to purchase JUUL shares, exercisable each quarter upon dilution, 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 until December 20, 2024. As part of the JUUL Transaction, Altria and JUUL entered into a services agreement pursuant to which Altria agreed to provide JUUL with certain commercial services, as requested by JUUL, for an initial term of six years. Altria also agreed to grant JUUL a non-exclusive, royalty-free perpetual, irrevocable, sublicensable license to Altria’s non-trademark licensable intellectual property rights in the e-vapor field, subject to the terms and conditions set forth in an intellectual property license agreement between the parties. Additionally, Altria 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 until at least December 20, 2024. In January 2020, Altria and JUUL amended certain JUUL Transaction agreements and entered into a new cooperation agreement, which included the following provisions: ▪ Altria will continue to provide regulatory affairs support for JUUL’s pursuit of its pre-market tobacco applications (“PMTA”) and/or its modified risk tobacco products authorization (“MRTP”) and discontinued all other services as of March 31, 2020. ▪ Altria will have the option to be released from its non-compete obligation (i) in the event JUUL is prohibited by federal law from selling e-vapor products in the U.S. for a continuous period of at least 12 months (subject to tolling of this period in certain circumstances) or (ii) if the carrying value of Altria’s investment in JUUL is not more than 10% of its initial carrying value of $12.8 billion. ▪ Altria and JUUL agreed that for a period of one year they will not pursue any litigation against each other in connection with any conduct that occurred prior to the date of such cooperation agreement, with statutes of limitation being tolled during the one-year period. • With respect to certain litigation in which Altria and JUUL are both defendants against third-party plaintiffs, Altria will not pursue any claims against JUUL for indemnification or reimbursement except for any non-contractual claims for contribution or indemnity where a judgment has been entered against Altria and JUUL. • In the event of Share Conversion and if Altria chooses to exercise its governance rights (which it has not currently elected to do, as discussed below), JUUL will: ▪ restructure JUUL’s current seven-member board of directors to a nine-member board that will include independent board members. The new structure will include: (i) three independent directors (one of whom will be designated by Altria and two of whom will be designated by JUUL stockholders other than Altria) unanimously certified as independent by a nominating committee, which will include at least one Altria designee, (ii) two directors designated by Altria, (iii) three directors designated by JUUL stockholders other than Altria, and (iv) the JUUL Chief Executive Officer; and ▪ create a Litigation Oversight Committee, which will include two Altria designated directors (one of whom will chair the Litigation Oversight Committee) that will have oversight authority and review of litigation management for matters in which JUUL and Altria are co-defendants and have or reasonably could have a written joint defense agreement in effect between them. Subject to certain limitations, the Litigation Oversight Committee will recommend to JUUL changes to outside counsel and litigation strategy by majority vote, with disagreements by JUUL’s management being resolved by majority vote of JUUL’s board of directors. On April 1, 2020, the FTC issued an administrative complaint challenging Altria’s investment in JUUL. For further discussion on the FTC litigation, see Note 18. Contingencies - Antitrust Litigation . In November 2020, Altria exercised its rights to convert its non-voting JUUL shares to voting shares. Altria does not currently intend to exercise its additional governance rights obtained upon Share Conversion, including the right to elect directors to JUUL’s board or to vote its JUUL shares other than as a passive investor, pending the outcome of the FTC administrative complaint. At December 31, 2020, Altria had a 35% ownership interest in JUUL, consisting of 42 million voting shares. Following Share Conversion in the fourth quarter of 2020, Altria elected to account for its equity method investment in JUUL under the fair value option. Under this option, Altria’s consolidated statements of earnings (losses) include any cash dividends received from its investment in JUUL and any changes in the fair value of its investment, which is calculated quarterly. Altria believes the fair value option provides quarterly transparency to investors as to the fair market value of Altria’s investment in JUUL, given the changes and volatility in the e-vapor category since Altria’s initial investment, as well as the lack of publicly available information regarding JUUL’s business or a market-derived valuation. The following table provides a reconciliation of the beginning and ending balance of the JUUL investment, which is classified in Level 3 of the fair value hierarchy: (in millions) Balance at December 31, 2019 $ — Transfers into Level 3 fair value 1,605 Unrealized gains included with income / (losses) from equity investments 100 Balance at December 31, 2020 $ 1,705 Prior to Share Conversion, Altria accounted for its investment in JUUL as an investment in an equity security. Since the JUUL shares do not have a readily determinable fair value, Altria elected to measure its investment in JUUL at its cost minus 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. There were no upward or downward adjustments to the carrying value of Altria’s investment in JUUL resulting from observable price changes in orderly transactions since the JUUL Transaction through the date of Share Conversion. In addition, Altria reviewed its investment in JUUL for impairment by performing a qualitative assessment of impairment indicators on a quarterly basis in connection with the preparation of its financial statements. If this qualitative assessment indicated that Altria’s investment in JUUL may be impaired, a quantitative assessment was performed. If the quantitative assessment indicated the fair value of the investment was less than its carrying value, the investment was written down to its fair value. 2020 Financial Activity ▪ Altria recorded a non-cash pre-tax unrealized gain of $100 million for the fourth quarter and year ended December 31, 2020 as a result of an increase in the fair value of JUUL. The increase in fair value was primarily driven by the effect of passage of time on the projected cash flows, as there were no material changes in the significant assumptions. ▪ JUUL announced a strategic update in September 2020, which included its plans for a significant global workforce reduction, its evaluation of its resource allocation and the possibility of exiting various international markets. As part of the preparation of Altria’s financial statements for the period ended September 30, 2020, Altria performed a qualitative assessment of impairment indicators for its investment in JUUL and determined that JUUL’s strategic update was an indicator of impairment at September 30, 2020, given the significant deterioration in JUUL’s business prospects. ▪ Given the existence of this impairment indicator, Altria performed a quantitative valuation of its investment in JUUL during the third quarter of 2020 and recorded a non-cash pre-tax charge of $2.6 billion for the year ended December 31, 2020, reported as impairment of JUUL equity securities in its consolidated statement of earnings (losses). The impairment charge was driven by Altria’s projections of lower JUUL revenues over time due to lower pricing assumptions and delays in JUUL achieving previously forecasted operating margin performance. These drivers were the result of: (i) JUUL’s revised international expansion plans and (ii) the evolving U.S. e-vapor category and associated competitive dynamics. 2019 Financial Activity ▪ In 2019, Altria recorded total non-cash pre-tax impairment charges of $8.6 billion ($4.5 billion in the third quarter of 2019 and $4.1 billion in the fourth quarter of 2019) related to its investment in JUUL resulting in a $4.2 billion carrying value of its investment in JUUL at December 31, 2019. ▪ In the third quarter of 2019, Altria performed a qualitative assessment for impairment indicators and concluded that impairment indicators existed. These indicators included significant adverse changes in both the e-vapor regulatory environment and the industry in which JUUL operates. While there was no single determinative event or factor, Altria considered in totality the following indicators of impairment: the increased likelihood of a United States Food and Drug Administration (“FDA”) compliance policy prohibiting the sale of certain flavored e-vapor products in the U.S. market without a pre-market authorization; various e-vapor bans put in place by certain states and cities in the U.S. and in certain international markets, coupled with the increased potential for additional bans in the future; and the impact of heightened adverse publicity, including news reports and public health advisories concerning vaping-related lung injuries and deaths. Altria determined that the third-quarter 2019 impairment charge was due primarily to lower e-vapor sales volume assumptions in the U.S. and international markets and a delay in achieving operating margin performance as compared to the assumptions at the time of the JUUL Transaction, which resulted in a non-cash pre-tax charge of $4.5 billion. • In the fourth quarter of 2019, Altria determined that a significant increase in the number of legal cases pending against JUUL in the fourth quarter of 2019, which included a variety of class action lawsuits and personal injury claims, as well as cases brought by state attorneys general and local governments, resulted in an additional indicator of impairment. Altria determined that the fourth-quarter 2019 impairment charge resulted substantially from increased discount rates applied to future cash flow projections, due to the significant risk created by the increase in the number of legal cases pending against JUUL and the expectation that the number of legal cases against JUUL will continue to increase, which resulted in an additional non-cash pre-tax charge of $4.1 billion. Altria uses an income approach to estimate the fair value of its investment in JUUL. The income approach reflects the discounting of future cash flows for the U.S. and international markets at a rate of return that incorporates the risk-free rate for the use of those funds, the expected rate of inflation and the risks associated with realizing future cash flows. Future cash flows were based on a range of scenarios that consider various potential regulatory and market outcomes. In determining the fair value of its investment in JUUL, in 2020 and 2019, Altria made various judgments, estimates and assumptions, the most significant of which were sales volume, operating margins, discount rates and perpetual growth rates. All significant inputs used in the valuation are classified in Level 3 of the fair value hierarchy. Additionally in determining these significant assumptions, Altria made judgments regarding the: (i) likelihood and extent of various potential regulatory actions and the continued adverse public perception impacting the e-vapor category and specifically JUUL, (ii) risk created by the number and types of legal cases pending against JUUL, and (iii) expectations for the future state of the e-vapor category including competitive dynamics. As disclosed in Note 8. Short-term Borrowings and Borrowing Arrangements , Altria financed the JUUL Transaction and the Investment in Cronos (defined below) through a senior unsecured term loan agreement (the “Term Loan Agreement”). Costs incurred to effect the Investment in Cronos In March 2019, Altria completed its acquisition of: ▪ 149.8 million newly issued common shares of Cronos (“Acquired Common Shares”), which represented a 45% economic and voting interest; ▪ anti-dilution protections to purchase Cronos common shares, exercisable each quarter upon dilution, 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 Canadian dollar (“CAD”) $16.25 upon the occurrence of specified events (“Fixed-price Preemptive Rights”). Based on Altria’s assumptions as of December 31, 2020, Altria estimates the Fixed-price Preemptive Rights allows Altria to purchase up to an additional approximately 30 million common shares of Cronos; and ▪ a warrant providing Altria the ability to purchase up to an additional 10% of common shares of Cronos (approximately 80 million common shares at December 31, 2020) 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 was CAD $2.4 billion (U.S. dollar (“USD”) $1.8 billion). 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 7. 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. If exercised in full, the exercise prices for the warrant and Fixed-price Preemptive Rights are approximately CAD $1.5 billion and CAD $0.5 billion (approximately USD $1.2 billion and $0.4 billion, respectively, based on the CAD to USD exchange rate on January 25, 2021). At December 31, 2020, upon full exercise of the Fixed-price Preemptive Rights, to the extent such rights become available, and the warrant, Altria would own approximately 54% of the outstanding common shares of Cronos. For a discussion of derivatives related to the Investment in Cronos, including Altria’s accounting for changes in the fair value of these derivatives, see Note 7. Financial Instruments . At December 31, 2020, Altria had a 43.5% ownership interest in Cronos, consisting of 156.6 million shares, which Altria accounts for under the equity method of accounting. Altria’s ownership percentage decreased from 45% at December 31, 2019 due to the issuance of additional shares by Cronos for which Altria did not exercise its Fixed-price Preemptive Rights. 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. Altria nominated four directors, including one director who is independent from Altria, who serve on Cronos’s seven-member board of directors. Summary financial data of Cronos is as follows: For Altria’s Year Ended December 31, (in millions) 2020 (1) 2019 (1) Net revenues $ 37 $ 21 Gross profit $ (31) $ 10 Earnings from continuing operations $ 99 $ 1,117 Net earnings $ 98 $ 1,117 Net earnings attributable to Cronos $ 100 $ 1,117 At September 30, (in millions) 2020 (1) 2019 (1) Current assets $ 1,394 $ 1,575 Long-term assets $ 525 $ 511 Current liabilities $ 143 $ 457 Long-term liabilities $ 12 $ 7 Noncontrolling interests $ (3) $ — (1) Reflects the one-quarter lag. Summary financial data of Cronos’s results for Altria’s year ended December 31, 2019 include Cronos’s results for the period March 8, 2019 through September 30, 2019. At December 31, 2020, Altria’s carrying value of its equity method investment in Cronos exceeded its share of Cronos’s net assets attributable to equity holders of Cronos by approximately $0.2 billion. Substantially all of this difference is comprised of definite-lived intangible assets (consisting of licenses, distribution agreements and developed technology). The fair value of Altria’s equity method investment in Cronos is based on unadjusted quoted prices in active markets for Cronos’s common shares and was classified in Level 1 of the fair value hierarchy. The fair value of Altria’s equity method investment in Cronos at December 31, 2020 and 2019 was $1.1 billion (carrying value of $1.0 billion) and $1.2 billion (carrying value of $1.0 billion), respectively, which exceeded its carrying value by approximately 8% and 20% at December 31, 2020 and 2019, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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 ABI, 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 unsecured long-term notes (“foreign currency denominated debt”) as net investment hedges of Altria’s investment in ABI. The following table provides (i) the aggregate notional amounts of foreign currency contracts and (ii) the aggregate carrying value and fair value of foreign currency denominated debt: (in millions) December 31, 2020 December 31, 2019 Foreign currency contracts (notional amounts) $ 1,066 $ 2,246 Foreign currency denominated debt Carrying value 5,171 4,741 Fair value 5,687 5,057 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. The following table provides the aggregate carrying value and fair value of Altria’s total long-term debt: (in millions) December 31, 2020 December 31, 2019 Carrying value $ 29,471 $ 28,042 Fair value 34,682 30,710 Altria’s estimate of the fair value of its total long-term 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 Fixed-price Preemptive Rights and Cronos warrant, which are further discussed in Note 6. 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 Cronos warrant are estimated using Black-Scholes option-pricing models, adjusted for observable inputs (which are classified in Level 1 of the fair value hierarchy), including share price, and 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: December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Fixed-price Preemptive Rights Cronos Warrant Share price (1) C$8.84 C$9.97 C$8.84 C$9.97 Expected life (2) 1.05 years 1.67 years 2.18 years 3.18 years Expected volatility (3) 80.68% 81.61% 80.68% 81.61% Risk-free interest rate (4)(5) 0.13% 1.71% 0.21% 1.69% Expected dividend yield (6) —% —% —% —% (1) Based on the closing market price for Cronos common stock on the Toronto Stock Exchange on the date indicated. (2) Based on the weighted-average expected life of the Fixed-price Preemptive Rights (with a range from approximately 0.25 year to 5 years at December 31, 2020 and 0.25 year to 6 years at December 31, 2019) and the March 8, 2023 expiration date of the Cronos warrant. (3) Based on a blend of historical volatility levels of the underlying equity security and peer companies. (4) Based on the implied yield currently available on Canadian Treasury zero coupon issues (with a range from approximately 0.06% to 0.39% at December 31, 2020 and 1.66% to 1.74% at December 31, 2019) weighted for the remaining expected life of the Fixed-price Preemptive Rights. (5) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the Cronos warrant. (6) 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 Cronos warrant, which are classified in Level 3 of the fair value hierarchy: (in millions) 2020 2019 Balance at January 1 $ 303 $ — Initial investment in Fixed-price Preemptive Rights and warrant — 1,736 Exercise of Fixed-price Preemptive Rights — (22) Pre-tax earnings (losses) recognized in net earnings (140) (1,411) Balance at December 31 $ 163 $ 303 Altria elects to record the gross assets and liabilities of derivative financial instruments executed with the same counterparty on its consolidated balance sheets. The fair values of Altria’s derivative financial instruments on a gross basis included on the consolidated balance sheets were as follows: Fair Value of Assets Fair Value of Liabilities (in millions) Balance Sheet Classification December 31, 2020 December 31, 2019 Balance Sheet Classification December 31, 2020 December 31, 2019 Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ — $ 46 Other accrued liabilities $ 87 $ 7 Foreign currency contracts Other assets — — Other liabilities — 21 Total $ — $ 46 $ 87 $ 28 Derivatives not designated as hedging instruments: Cronos warrant Investments in equity securities $ 139 $ 234 Fixed-price Preemptive Rights Investments in equity securities 24 69 Total $ 163 $ 303 Total derivatives $ 163 $ 349 $ 87 $ 28 Altria records in its consolidated statements of earnings (losses) any changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant as gains or losses on Cronos-related financial instruments in the periods in which the changes occur. For the years ended December 31, 2020 and 2019, Altria recognized pre-tax unrealized (losses) representing the changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant, as follows: For the Years Ended December 31, (in millions) 2020 2019 Fixed-price Preemptive Rights $ (45) $ (434) Cronos warrant (95) (977) Total $ (140) $ (1,411) Additionally, in January and February 2019, Altria entered into derivative financial instruments in the form of forward contracts, which were settled in March 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 Investment in Cronos. 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, in the first quarter of 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 consolidated statement of earnings (losses). 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. The counterparty agreements contain provisions that require Altria to maintain an investment grade credit rating. In the event Altria’s credit rating falls below investment grade, counterparties to Altria’s foreign currency contracts can require Altria to post collateral. No collateral was received or posted related to derivative assets and liabilities at December 31, 2020 and December 31, 2019. ▪ Net Investment Hedging: The pre-tax effects of Altria’s net investment hedges on accumulated other comprehensive losses and the consolidated statements of earnings (losses) were as follows: Gain (Loss) Recognized in Accumulated Other Comprehensive Losses Gain (Loss) Recognized in Net Earnings (Losses) (1) For the Years Ended December 31, (in millions) 2020 2019 2020 2019 Foreign currency contracts $ (79) $ 23 $ 40 $ 36 Foreign currency denominated debt (424) 35 — — Total $ (503) $ 58 $ 40 $ 36 (1) Related to amounts excluded from effectiveness testing. The changes in the fair value of the foreign currency contracts and in the carrying value of the foreign currency denominated debt due to changes in the Euro to USD exchange rate were recognized in accumulated other comprehensive losses related to ABI. Gains on the foreign currency contracts arising from components excluded from effectiveness testing were recognized in interest and other debt expense, net in the consolidated statements of earnings (losses) based on an amortization approach. |
Short-Term Borrowings and Borro
Short-Term Borrowings and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Borrowing Arrangements | Short-Term Borrowings and Borrowing Arrangements At December 31, 2020 and 2019, Altria had no short-term borrowings. At December 31, 2020, Altria had a senior unsecured 5-year revolving credit agreement (as amended, the “Credit Agreement”) that provides for borrowings up to an aggregate principal amount of $3.0 billion. The Credit Agreement, which is used for general corporate purposes, expires on August 1, 2023 and includes an option, subject to certain conditions, for Altria to extend the Credit Agreement for two additional one-year periods. Pricing for interest and fees under the Credit Agreement may be modified in the event of a change in the rating of Altria’s long-term senior unsecured debt. Interest rates on borrowings under the Credit Agreement are expected to be based on the London Interbank Offered Rate (“LIBOR”), or a mutually agreed upon benchmark rate, plus a percentage based on the higher of the ratings of Altria’s long-term senior unsecured debt from Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Services (“Standard & Poor’s”). The applicable percentage based on Altria’s long-term senior unsecured debt ratings at December 31, 2020 for borrowings under the Credit Agreement was 1.0%. The Credit Agreement does not include any other rating triggers, or any provisions that could require the posting of collateral. The Credit Agreement includes various covenants, one of which requires Altria to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to Consolidated Interest Expense of not less than 4.0 to 1.0, calculated as of the end of the applicable quarter on a rolling four quarters basis. At December 31, 2020, the ratio of consolidated EBITDA to Consolidated Interest Expense, calculated in accordance with the Credit Agreement, was 9.0 to 1.0. At December 31, 2020, Altria was in compliance with its covenants in the Credit Agreement. The terms “Consolidated EBITDA” and “Consolidated Interest Expense,” each as defined in the Credit Agreement, include certain adjustments. In March 2020, due to the uncertainty at that time in the global capital markets, including the commercial paper markets, resulting from the COVID-19 pandemic, Altria elected to borrow the full $3.0 billion available under the Credit Agreement as a precautionary measure to increase its cash position and preserve financial flexibility. In June 2020, Altria repaid the full amount outstanding under the Credit Agreement using the net proceeds from the issuance of long-term senior unsecured notes issued in May 2020 and available cash. At December 31, 2020 and 2019, Altria had no borrowings under the Credit Agreement. The credit line available to Altria at December 31, 2020 under the Credit Agreement was $3.0 billion. At December 31, 2018, Altria had aggregate short-term borrowings of $12.8 billion under the Term Loan Agreement that was set to mature in December 2019. In February 2019, Altria repaid all of the outstanding $12.8 billion using the net proceeds from the issuance of long-term senior unsecured notes. Upon repayment, the Term Loan Agreement terminated in 2019, and Altria recorded approximately $95 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 consolidated statement of earnings (losses). Any commercial paper issued by Altria and borrowings under the Credit Agreement are guaranteed by PM USA as further discussed in Note 9. Long-Term Debt. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt At December 31, 2020 and 2019, Altria’s long-term debt consisted of the following: (in millions) 2020 2019 USD notes, 2.350% to 10.20%, interest payable semi-annually, due through 2059 (1) $ 24,258 $ 23,259 USD Debenture, 7.75%, interest payable semi-annually, due 2027 42 42 Euro notes,1.000% to 3.125%, interest payable annually, due through 2031 (2) 5,171 4,741 29,471 28,042 Less current portion of long-term debt 1,500 1,000 $ 27,971 $ 27,042 (1) Weighted-average coupon interest rate of 4.6% at December 31, 2020 and 2019 . (2) Weighted-average coupon interest rate of 2.0% at December 31, 2020 and 2019 . At December 31, 2020, aggregate maturities of Altria’s long-term debt were as follows: (in millions) 2021 $ 1,500 2022 2,900 2023 1,877 2024 2,400 2025 1,666 Thereafter 19,358 29,701 Less: debt issuance costs 151 debt discounts 79 $ 29,471 At December 31, 2020 and 2019, accrued interest on long-term debt of $458 million and $470 million, respectively, was included in other accrued liabilities on Altria’s consolidated balance sheets. ▪ Altria Senior Notes: In May 2020, Altria issued USD denominated long-term senior unsecured notes in the aggregate principal amount of $2.0 billion. The net proceeds from the notes were used for general corporate purposes, which included repayment of the borrowings in March 2020 under the Credit Agreement. The Notes contain the following terms: ▪ $0.750 billion at 2.350%, due 2025, interest payable semiannually beginning November 6, 2020; ▪ $0.750 billion at 3.400%, due 2030, interest payable semiannually beginning November 6, 2020; and ▪ $0.500 billion at 4.450%, due 2050, interest payable semiannually beginning November 6, 2020. All of Altria’s outstanding notes are 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, Standard & Poor’s 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. During 2020, Altria repaid in full at maturity notes in the aggregate principal amount of $1.0 billion. PM USA (the “Guarantor”), which is a 100% owned subsidiary of Altria Group, Inc. (the “Parent”), has guaranteed the Parent’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, the Guarantor fully and unconditionally guarantees, as primary obligor, the payment and performance of the Parent’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below. The Guarantees provide that the Guarantor guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of the Guarantor 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, the Parent or the Guarantor. The Parent is a holding company; therefore, its 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. Neither the Guarantor nor other 100% owned subsidiaries of the Parent that are not guarantors of the Obligations are limited by contractual obligations on their ability to pay cash dividends or make other distributions with respect to their equity interests. For a discussion of the fair value of Altria’s long-term debt and the designation of its Euro denominated senior unsecured notes as a net investment hedge of its investment in ABI, see Note 7. Financial Instruments . |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | Capital Stock At December 31, 2020, Altria had 12 billion shares of authorized common stock; issued, repurchased and outstanding shares of common stock were as follows: Shares Issued Shares Repurchased Shares Outstanding Balances, December 31, 2017 2,805,961,317 (904,702,125) 1,901,259,192 Stock award activity — 676,727 676,727 Repurchases of common stock — (27,878,324) (27,878,324) Balances, December 31, 2018 2,805,961,317 (931,903,722) 1,874,057,595 Stock award activity — 427,276 427,276 Repurchases of common stock — (16,503,317) (16,503,317) Balances, December 31, 2019 2,805,961,317 (947,979,763) 1,857,981,554 Stock award activity — 437,611 437,611 Balances, December 31, 2020 2,805,961,317 (947,542,152) 1,858,419,165 At December 31, 2020, Altria had 28,357,980 shares of common stock reserved for stock-based awards under Altria’s stock plans. At December 31, 2020, 10 million shares of serial preferred stock, $1.00 par value, were authorized; no shares of serial preferred stock have been issued. ▪ Dividends: During the third quarter of 2020, Altria’s Board of Directors (the “Board of Directors”) approved a 2.4% increase in the quarterly dividend rate to $0.86 per share of Altria common stock versus the previous rate of $0.84 per share. The current annualized dividend rate is $3.44 per share. Future dividend payments remain subject to the discretion of the Board of Directors. ▪ Share Repurchases: In January 2018, the Board of Directors authorized a $1.0 billion share repurchase program that it expanded to $2.0 billion in May 2018 (as expanded, the “January 2018 share repurchase program”). In June 2019, Altria completed the January 2018 share repurchase program, under which it purchased a total of 34.0 million shares of its common stock at an average price of $58.86 per share. In July 2019, the Board of Directors authorized a $1.0 billion share repurchase program (the “July 2019 share repurchase program”). In April 2020, the Board of Directors rescinded the $500 million remaining in this program as part of Altria’s efforts to enhance its liquidity position in response to the COVID-19 pandemic. In January 2021, the Board of Directors authorized a new $2.0 billion share repurchase program. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors. Altria did not repurchase any shares in 2020. For the years ended December 31, 2019 and 2018, Altria’s total share repurchase activity was as follows: July 2019 Share Repurchase Program January 2018 Share Repurchase Program July 2015 Share Repurchase Program (1) Total (in millions, except per share data) 2019 2019 2018 2018 2019 2018 Total number of shares repurchased 10.1 6.4 27.6 0.3 16.5 27.9 Aggregate cost of shares repurchased $ 500 $ 345 $ 1,655 $ 18 $ 845 $ 1,673 Average price per share of shares repurchased $ 49.29 $ 54.36 $ 59.89 $ 71.68 $ 51.24 $ 60.00 (1) In July 2015, the Board of Directors authorized a $1.0 billion share repurchase program (expanded to $3.0 billion in October 2016 and to $4.0 billion in July 2017), which was completed in January 2018. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans In 2020, the Board of Directors adopted, and shareholders approved, the Altria Group, Inc. 2020 Performance Incentive Plan (the “2020 Plan”). The 2020 Plan succeeded the 2015 Performance Incentive Plan, under which no new awards were permitted to be made after May 31, 2020. Under the 2020 Plan, Altria may grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance stock units (“PSUs”) and other stock-based awards, as well as cash-based annual and long-term incentive awards to employees of Altria or any of its subsidiaries or affiliates. Any awards granted pursuant to the 2020 Plan may be in the form of performance-based awards, including PSUs subject to the achievement or satisfaction of performance goals and performance cycles. Up to 25 million shares of common stock may be issued under the 2020 Plan. In addition, under the 2015 Stock Compensation Plan for Non-Employee Directors (the “Directors Plan”), Altria may grant up to one million shares of common stock to members of the Board of Directors who are not employees of Altria. Shares available to be granted under the 2020 Plan and the Directors Plan at December 31, 2020, were 24,827,160 and 759,234, respectively. ▪ RSUs: During the vesting period, RSUs include nonforfeitable rights to dividends or dividend equivalents and may not be sold, assigned, pledged or otherwise encumbered. RSUs are subject to forfeiture if certain employment conditions are not met. Altria estimates the number of awards expected to be forfeited and adjusts this estimate when subsequent information indicates that the actual number of forfeitures is likely to differ from previous estimates. RSUs generally vest three years after the grant date. The fair value of the RSUs at the date of grant, net of estimated forfeitures, is amortized to expense ratably over the restriction period, which is generally three years. Altria recorded pre-tax compensation expense related to RSUs for the years ended December 31, 2020, 2019 and 2018 of $31 million, $28 million and $39 million, respectively. The deferred tax benefit recorded related to this compensation expense was $8 million, $7 million and $9 million for the years ended December 31, 2020, 2019 and 2018, respectively. The unamortized compensation expense related to RSUs was $54 million at December 31, 2020 and is expected to be recognized over a weighted-average period of approximately two years. RSU activity was as follows for the year ended December 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at December 31, 2019 1,909,642 $ 61.46 Granted 1,162,118 $ 42.59 Vested (542,331) $ 66.22 Forfeited (290,050) $ 51.91 Balance at December 31, 2020 2,239,379 $ 51.76 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2020, 2019 and 2018 was $49 million, $37 million and $60 million, respectively, or $42.59, $52.03 and $67.17 per RSU, respectively. The total vesting date fair value of restricted stock and RSUs that vested during the years ended December 31, 2020, 2019 and 2018 was $25 million, $30 million and $65 million, respectively. ▪ PSUs: Altria granted an aggregate of 275,288, 181,409 and 177,338 of PSUs during 2020, 2019 and 2018, respectively. The payout of the PSUs is based on the achievement of certain performance measures over the three-year performance period. For the 2020 grant, these performance measures consist of Altria’s adjusted diluted earnings per share compounded annual growth rate and a cash conversion measure for Altria. Additionally, the payout resulting from the performance measures is then adjusted up or down by a total shareholder return (“TSR”) performance multiplier, which depends on Altria’s relative TSR to a predetermined peer group. For the |
Earnings (Losses) per Share
Earnings (Losses) per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Losses) per Share | Earnings (Losses) per Share Basic and diluted earnings (losses) per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2020 2019 2018 Net earnings (losses) attributable to Altria $ 4,467 $ (1,293) $ 6,963 Less: Distributed and undistributed earnings attributable to share-based awards (8) (7) (8) Earnings (losses) for basic and diluted EPS $ 4,459 $ (1,300) $ 6,955 Weighted-average shares for basic EPS 1,858 1,869 1,887 Plus: contingently issuable PSUs 1 — 1 Weighted-average shares for diluted EPS 1,859 1,869 1,888 |
Other Comprehensive Earnings_Lo
Other Comprehensive Earnings/Losses | 12 Months Ended |
Dec. 31, 2020 | |
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: (in millions) Benefit Plans ABI Currency Accumulated Balances, December 31, 2017 $ (1,839) $ (54) $ (4) $ (1,897) Adoption of ASU No. 2018-02 (1) (397) (11) — (408) Other comprehensive earnings (losses) before reclassifications (151) (323) (1) (475) Deferred income taxes 39 64 — 103 Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (112) (259) (1) (372) Amounts reclassified to net earnings (losses) 241 (64) — 177 Deferred income taxes (61) 14 — (47) Amounts reclassified to net earnings (losses), net of deferred income taxes 180 (50) — 130 Other comprehensive earnings (losses), net of deferred income taxes 68 (309) (2) (1) (242) Balances, December 31, 2018 (2,168) (374) (5) (2,547) Other comprehensive earnings (losses) before reclassifications (204) (367) 26 (545) Deferred income taxes 51 75 — 126 Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (153) (292) 26 (419) Amounts reclassified to net earnings (losses) 173 (34) — 139 Deferred income taxes (44) 7 — (37) Amounts reclassified to net earnings (losses), net of deferred income taxes 129 (27) — 102 Other comprehensive earnings (losses), net of deferred income taxes (24) (319) (2) 26 (317) Balances, December 31, 2019 (2,192) (693) 21 (2,864) Other comprehensive earnings (losses) before reclassifications (454) (1,613) (4) (2,071) Deferred income taxes 115 352 — 467 Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (339) (1,261) (4) (1,604) Amounts reclassified to net earnings (losses) 148 21 — 169 Deferred income taxes (37) (5) — (42) Amounts reclassified to net earnings (losses), net of deferred income taxes 111 16 — 127 Other comprehensive earnings (losses), net of deferred income taxes (228) (1,245) (2) (4) (1,477) Balances, December 31, 2020 $ (2,420) $ (1,938) $ 17 $ (4,341) (1) Reflects the reclassification of the stranded income tax effects of the Tax Reform Act. (2) Primarily reflects Altria’s share of ABI’s currency translation adjustments and the impact of Altria’s designated net investment hedges. For further discussion of designated net investment hedges, see Note 7. Financial Instruments . The following table sets forth pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings (losses): For the Years Ended December 31, (in millions) 2020 2019 2018 Benefit Plans: (1) Net loss $ 173 $ 200 $ 276 Prior service cost/credit (25) (27) (35) 148 173 241 ABI (2) 21 (34) (64) Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) $ 169 $ 139 $ 177 ( 1) Amounts are included in net defined benefit plan costs. For further details, see Note 16. Benefit Plans. (2) Amounts are primarily included in income (losses) from equity investments. For further information, see Note 6. Investments in Equity Securities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings (losses) before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Earnings (losses) before income taxes: United States $ 6,842 $ 266 $ 9,441 Outside United States 48 500 (100) Total $ 6,890 $ 766 $ 9,341 Provision (benefit) for income taxes: Current: Federal $ 2,025 $ 1,686 $ 1,911 State and local 553 470 519 Outside United States 22 3 1 2,600 2,159 2,431 Deferred: Federal (130) (78) (18) State and local (34) (19) (42) Outside United States — 2 3 (164) (95) (57) Total provision for income taxes $ 2,436 $ 2,064 $ 2,374 Altria’s U.S. subsidiaries join in the filing of a U.S. federal consolidated income tax return. The U.S. federal income tax statute of limitations remains open for the year 2016 and forward, with years 2016 through 2018 currently under examination by the Internal Revenue Service (“IRS”) as part of an audit conducted in the ordinary course of business. State statutes of limitations generally remain open for the year 2016 and forward. Certain of Altria’s state tax returns are currently under examination by various states as part of routine audits conducted in the ordinary course of business. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 64 $ 85 $ 66 Additions for tax positions of prior years 12 32 22 Reductions for tax positions of prior years (2) (16) (1) Tax settlements — (37) (2) Balance at end of year $ 74 $ 64 $ 85 Unrecognized tax benefits and Altria’s consolidated liability for tax contingencies at December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Unrecognized tax benefits $ 74 $ 64 Accrued interest and penalties 15 11 Tax credits and other indirect benefits (1) (1) Liability for tax contingencies $ 88 $ 74 The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate at December 31, 2020 was $47 million, along with $27 million affecting deferred taxes. The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate at December 31, 2019 was $40 million, along with $24 million affecting deferred taxes. Altria recognizes accrued interest and penalties associated with uncertain tax positions as part of the tax provision. For the years ended December 31, 2020, 2019 and 2018, Altria recognized in its consolidated statements of earnings (losses) $4 million, $6 million and $5 million, respectively, of gross interest expense associated with uncertain tax positions. 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. 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 $8 million. A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to earnings (losses) before income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 (dollars in millions) $ % $ % $ % U.S. federal statutory rate $ 1,447 21.0 % $ 161 21.0 % $ 1,962 21.0 % Increase (decrease) resulting from: State and local income taxes, net of federal tax benefit 410 6.0 356 46.5 377 4.0 Tax basis in foreign investments 23 0.3 84 11.0 140 1.5 Deemed repatriation tax — — — — 14 0.1 Uncertain tax positions 9 0.1 (40) (5.2) 8 0.1 Investment in ABI (16) (0.2) (210) (27.4) (104) (1.1) Investment in JUUL 537 7.8 1,808 236.0 15 0.2 Investment in Cronos 20 0.3 (66) (8.6) — — Other (1) 6 0.1 (29) (3.8) (38) (0.4) Effective tax rate $ 2,436 35.4 % $ 2,064 269.5 % $ 2,374 25.4 % (1) Other in 2019 is primarily deferred profit sharing dividends tax benefit of $21 million and immaterial miscellaneous items. The tax provision in 2020 included tax expense of $612 million for a valuation allowance on a deferred tax asset related to Altria’s impairment of its investment in JUUL in the third quarter of 2020, partially offset by a $24 million tax benefit reflecting the release of a portion of the valuation allowance related to a reduction of a deferred tax asset associated with an increase in the estimated fair value of JUUL in the fourth quarter of 2020. The tax provision in 2019 included tax expense of $2,024 million for a valuation allowance on a deferred tax asset related to Altria’s impairment of its investment in JUUL, tax expense of $84 million resulting from a partial reversal of the tax basis benefit associated with the deemed repatriation tax recorded in 2017 and tax expense of $38 million for a valuation allowance against foreign tax credits not realizable. These amounts were partially offset by a tax benefit of $105 million for amended tax returns and audit adjustments relating to a prior year, a tax benefit of $100 million for accruals no longer required and a net tax benefit of $79 million related to Altria’s Investment in Cronos, including a valuation allowance release on a deferred tax asset. The tax provision in 2018 included tax expense of $188 million related to the Tax Reform Act as follows: (i) tax expense of $140 million resulting from a partial reversal of the tax basis benefit associated with the deemed repatriation tax recorded in 2017; (ii) tax expense of $34 million for a valuation allowance on foreign tax credit carryforwards that are not realizable as a result of updates to the provisional estimates recorded in 2017; and (iii) tax expense of $14 million for an adjustment to the provisional estimates for the repatriation tax recorded in 2017. Substantially all of the 2018 amounts related to the tax basis adjustment, valuation allowance on foreign tax credits and repatriation tax relate to Altria’s share of ABI’s accumulated earnings and associated taxes. The adjustments recorded in 2018 to the provisional estimates recorded in 2017 were based on (i) additional guidance related to, or interpretation of, the Tax Reform Act and associated tax laws and (ii) additional information received from ABI, including information regarding ABI’s accumulated earnings and associated taxes for the 2016 and 2017 tax years. The accounting for the repatriation tax was completed in 2018; therefore, no further adjustments to the provisional estimates were required. The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at December 31, 2020 and 2019: (in millions) 2020 2019 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 524 $ 491 Settlement charges 888 833 Accrued pension costs 148 131 Investment in JUUL 2,642 2,047 Investment in Cronos 128 197 Net operating losses and tax credit carryforwards 81 92 Total deferred income tax assets 4,411 3,791 Deferred income tax liabilities: Property, plant and equipment (273) (255) Intangible assets (2,806) (2,758) Investment in ABI (2,819) (3,115) Finance assets, net (117) (204) Other (12) (158) Total deferred income tax liabilities (6,027) (6,490) Valuation allowances (2,817) (2,324) Net deferred income tax liabilities $ (4,433) $ (5,023) At December 31, 2020, Altria had estimated gross state tax net operating losses of $808 million that, if unused, will expire in 2021 through 2040. A reconciliation of the beginning and ending valuation allowances for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 2,324 $ 71 $ — Additions to valuation allowance related to Altria’s initial Investment in Cronos — 352 — Additions to valuation allowance charged to income tax expense 692 2,063 71 Reductions to valuation allowance credited to income tax benefit (200) (159) — Foreign currency translation 1 (3) — Balance at end of year $ 2,817 $ 2,324 $ 71 Altria determines the realizability of deferred tax assets based on the weight of available evidence, that it is more-likely-than-not that the deferred tax asset will not be realized. In reaching this determination, Altria considers all available positive and negative evidence, including the character of the loss, carryback and carryforward considerations, future reversals of temporary differences and available tax planning strategies. The 2020 valuation allowance was primarily attributable to deferred tax assets recorded in connection with the impairments of Altria’s investment in JUUL of $2,610 million, and its Investment in Cronos of $121 million. The 2019 valuation allowance was primarily attributable to the deferred tax asset recorded in connection with the impairment of Altria’s investment in JUUL. Altria recorded a full valuation allowance of $2,024 million against this deferred tax asset. For a discussion regarding the impairment of Altria’s investment in JUUL, see Note 6. Investments in Equity Securities . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting In the first quarter of 2020, Altria renamed its smokeless products segment as the oral tobacco products segment. The products of Altria’s subsidiaries include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA (including super premium cigarettes previously manufactured and sold by Nat Sherman), machine-made large cigars and pipe tobacco manufactured and sold by Middleton; oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix; and wine produced and/or distributed by Ste. Michelle. The products and services of these subsidiaries constitute Altria’s reportable segments of smokeable products, oral tobacco products (formerly 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 (loss) (“OCI”) to evaluate the performance of, and allocate resources to, the segments. OCI 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 income/cost, 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. Information about total assets by segment is not disclosed because such information is not reported to or used by the CODM. Substantially all of Altria’s long-lived assets are located in the United States. Segment goodwill and other intangible assets, net, are disclosed in Note 4. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies. Segment data were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Net revenues: Smokeable products $ 23,089 $ 21,996 $ 22,297 Oral tobacco products 2,533 2,367 2,262 Wine 614 689 691 All other (83) 58 114 Net revenues $ 26,153 $ 25,110 $ 25,364 Earnings before income taxes: Operating companies income (loss): Smokeable products $ 9,985 $ 9,009 $ 8,408 Oral tobacco products 1,718 1,580 1,431 Wine (360) (3) 50 All other (172) (16) (421) Amortization of intangibles (72) (44) (38) General corporate expenses (227) (199) (315) Corporate asset impairment and exit costs 1 (1) — Operating income 10,873 10,326 9,115 Interest and other debt expense, net (1,209) (1,280) (665) Net periodic benefit income, excluding service cost 77 37 34 Income (losses) from equity investments (111) 1,725 890 Impairment of JUUL equity securities (2,600) (8,600) — Loss on Cronos-related financial instruments (140) (1,442) — Loss on ABI/SABMiller business combination — — (33) Earnings before income taxes $ 6,890 $ 766 $ 9,341 The smokeable products segment included net revenues of $22,135 million, $21,158 million and $21,506 million for the years ended December 31, 2020, 2019 and 2018, respectively, related to cigarettes and net revenues of $954 million, $838 million and $791 million for the years ended December 31, 2020, 2019 and 2018, respectively, related to cigars. Substantially all of Altria’s net revenues are from sales generated in the United States for the years ended December 31, 2020, 2019 and 2018. PM USA, USSTC, Helix and Middleton’s largest customer, McLane Company, Inc., accounted for approximately 26%, 25% and 27% of Altria’s consolidated net revenues for the years ended December 31, 2020, 2019 and 2018, respectively. In addition, Core-Mark Holding Company, Inc. accounted for approximately 17%, 15% and 14% of Altria’s consolidated net revenues for the years ended December 31, 2020, 2019 and 2018, respectively. Substantially all of these net revenues were reported in the smokeable products and oral tobacco products segments. Sales to two distributors accounted for approximately 68%, 67% and 64% of net revenues for the wine segment for the years ended December 31, 2020, 2019 and 2018 respectively. Details of Altria’s depreciation expense and capital expenditures were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Depreciation expense: Smokeable products $ 81 $ 88 $ 90 Oral tobacco products 32 27 28 Wine 40 41 40 General corporate and other 32 26 31 Total depreciation expense $ 185 $ 182 $ 189 Capital expenditures: Smokeable products $ 49 $ 61 $ 81 Oral tobacco products 67 44 73 Wine 31 63 40 General corporate and other 84 78 44 Total capital expenditures $ 231 $ 246 $ 238 The comparability of OCI for the reportable segments and the all other category was affected by the following: ▪ Non-Participating Manufacturer (“NPM”) Adjustment Items: For the years ended December 31, 2020 and 2018, pre-tax expense (income) for NPM adjustment items of $4 million and $(145) million, respectively, was recorded to cost of sales in the smokeable products segment. No NPM adjustment items were recorded for 2019. 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 18. Contingencies ). ▪ Tobacco and Health Litigation Items: For the years ended December 31, 2020, 2019 and 2018, pre-tax charges related to certain tobacco and health litigation items were recorded in Altria’s consolidated statements of earnings (losses) as follows: (in millions) 2020 2019 2018 Smokeable products segment $ 79 $ 72 $ 103 Oral tobacco products segment — — 10 Interest and other debt expense, net 4 5 18 Total $ 83 $ 77 $ 131 The amounts shown in the table above for the smokeable and oral tobacco products segments were recorded in marketing, administration and research costs. For further discussion, see Note 18. Contingencies . ▪ COVID-19 Special Items: Net pre-tax charges of $50 million ($41 million in the smokeable products segment and $9 million in the oral tobacco products segment) related to the COVID-19 pandemic were recorded in Altria’s consolidated statement of earnings (losses) for the year ended December 31, 2020. The net pre-tax charges, which were directly related to disruptions caused by or efforts to mitigate the impact of the COVID-19 pandemic, were all recorded in costs of sales and included premium pay, personal protective equipment and health screenings, which were partially offset by certain employment tax credits. The COVID-19 special items do not include the inventory-related implementation costs associated with the wine business strategic reset, which are included in asset impairment, exit and implementation costs. These implementation costs were due to increased inventory levels, which were further negatively impacted by the COVID-19 pandemic, including economic uncertainty and government restrictions. ▪ Asset Impairment, Exit and Implementation Costs: See Note 5. Asset Impairment, Exit and Implementation Costs for a breakdown of these costs by segment. ▪ PMCC Residual Value Adjustments: |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Subsidiaries of Altria sponsor noncontributory defined benefit pension plans covering certain employees of Altria and its subsidiaries. Employees hired on or after a date specific to their employee group, except for certain employees of UST’s subsidiaries and Middleton, are not eligible to participate in these noncontributory defined benefit pension plans but are instead eligible to participate in a defined contribution plan with enhanced benefits. Altria and its subsidiaries also provide postretirement health care and other benefits to certain retired employees. The plan assets and benefit obligations of Altria’s pension plans and postretirement plans are measured at December 31 of each year. The discount rates for Altria’s plans were based on a yield curve developed from a model portfolio of high-quality corporate bonds with durations that match the expected future cash flows of the pension and postretirement benefit obligations. ▪ Obligations and Funded Status: The benefit obligations, plan assets and funded status of Altria’s pension and postretirement plans at December 31, 2020 and 2019 were as follows: Pension Postretirement (in millions) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 8,659 $ 7,726 $ 2,091 $ 2,040 Service cost 74 70 16 16 Interest cost 251 306 59 76 Benefits paid (477) (493) (107) (126) Actuarial losses 970 1,025 169 78 Settlement and curtailment — 25 — 7 Other (12) — 1 — Benefit obligation at end of year 9,465 8,659 2,229 2,091 Change in plan assets: Fair value of plan assets at beginning of year 8,167 7,138 213 211 Actual return on plan assets 1,188 1,466 21 45 Employer contributions 33 56 — — Benefits paid (477) (493) (33) (43) Fair value of plan assets at end of year 8,911 8,167 201 213 Funded status at December 31 $ (554) $ (492) $ (2,028) $ (1,878) Amounts recognized on Altria’s consolidated balance sheets were as follows: Other accrued liabilities $ (23) $ (26) $ (77) $ (81) Accrued pension costs (551) (473) — — Other assets 20 7 — — Accrued postretirement health care costs — — (1,951) (1,797) $ (554) $ (492) $ (2,028) $ (1,878) The table above presents the projected benefit obligation for Altria’s pension plans. The accumulated benefit obligation, which represents benefits earned to date, for the pension plans was $9.1 billion and $8.4 billion at December 31, 2020 and 2019, respectively. Actuarial losses for the years ended December 31, 2020 and 2019 for the pension and postretirement plans were due primarily to changes in the discount rate assumptions. For pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2020, the accumulated benefit obligation and fair value of plan assets were $393 million and $149 million, respectively. For pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2019, the accumulated benefit obligation and fair value of plan assets were $357 million and $134 million, respectively. For pension plans with projected benefit obligations in excess of plan assets at December 31, 2020, the projected benefit obligation and fair value of plan assets were $9,324 million and $8,750 million, respectively. For pension plans with projected benefit obligations in excess of plan assets at December 31, 2019, the projected benefit obligation and fair value of plan assets were $8,522 million and $8,023 million, respectively. At December 31, 2020 and 2019, the accumulated postretirement benefit obligations were in excess of plan assets for all postretirement plans. The following assumptions were used to determine Altria’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2020 2019 2020 2019 Discount rate 2.7 % 3.4 % 2.6 % 3.4 % Rate of compensation increase 4.0 4.0 — — Health care cost trend rate assumed for next year — — 6.5 6.5 Ultimate trend rate — — 5.0 5.0 Year that the rate reaches the ultimate trend rate — — 2027 2025 ▪ Components of Net Periodic Benefit Cost (Income): Net periodic benefit cost (income) consisted of the following for the years ended December 31, 2020, 2019 and 2018: Pension Postretirement (in millions) 2020 2019 2018 2020 2019 2018 Service cost $ 74 $ 70 $ 81 $ 16 $ 16 $ 18 Interest cost 251 306 276 59 76 70 Expected return on plan assets (502) (576) (585) (14) (15) (19) Amortization: Net loss 134 159 225 10 5 21 Prior service cost (credit) 5 6 4 (30) (30) (42) Settlement and curtailment 10 27 16 — 5 — Net periodic benefit cost (income) $ (28) $ (8) $ 17 $ 41 $ 57 $ 48 Settlement and curtailment shown in the table above for 2019 and 2018 primarily relate to the cost reduction program discussed in Note 5. Asset Impairment, Exit and Implementation Costs . The amounts included in settlement and curtailment in the table above were comprised of the following changes: Pension Postretirement (in millions) 2020 2019 2018 2019 Benefit obligation $ — $ 6 $ — $ 10 Other comprehensive earnings/losses: Net loss 10 20 13 — Prior service cost (credit) — 1 3 (5) $ 10 $ 27 $ 16 $ 5 The following assumptions were used to determine Altria’s net periodic benefit cost for the years ended December 31: Pension Postretirement 2020 2019 2018 2020 2019 2018 Discount rates: Service cost 3.7 % 4.6 % 3.8 % 3.6 % 4.5 % 3.8 % Interest cost 3.0 4.0 3.3 3.0 4.0 3.3 Expected rate of return on plan assets 6.6 7.8 7.8 7.7 7.8 7.8 Rate of compensation increase 4.0 4.0 4.0 — — — Health care cost trend rate — — — 6.5 6.5 7.0 ▪ Defined Contribution Plans: Altria sponsors deferred profit-sharing plans covering certain salaried, non-union and union employees. Contributions and costs are determined generally as a percentage of earnings, as defined by the plans. Amounts charged to expense for these defined contribution plans totaled $88 million, $78 million and $85 million in 2020, 2019 and 2018, respectively. ▪ Pension and Postretirement Plan Assets: In managing its pension assets, Altria implements a liability-driven investment framework that aligns plan assets with liabilities. The current target allocation between fixed income and growth assets of 70%/30%, respectively, balances pension liability hedging and asset growth in order to maintain the plan’s funded status and cover incremental service accruals and interest cost. Liability hedging is achieved through investing in rate-sensitive fixed income securities, primarily corporate bonds and U.S. Treasuries, while growth assets are comprised of publicly traded equity securities. Altria’s investment strategy for its postretirement plan assets is aimed at maximizing the total asset return based on expectation that equity securities will outperform debt securities over the long term and reflects the maturity structure of the benefit obligation. The equity/fixed income target allocation for postretirement plan assets is 55%/45%. Altria believes that it implements these investment strategies in a prudent and risk-controlled manner, consistent with the fiduciary requirements of the Employee Retirement Income Security Act of 1974, by investing retirement plan assets in a well-diversified mix of equities, fixed income and other securities. The actual composition of Altria’s plan assets at December 31, 2020 was broadly characterized with the following allocation: Pension Postretirement Equity securities 31 % 58 % Corporate bonds 53 % 31 % U.S. Treasury and foreign government securities 16 % 11 % Altria’s pension and postretirement plan asset performance is monitored on an ongoing basis to adjust the mix as necessary. Substantially all pension and all postretirement assets can be used to make monthly benefit payments. Altria’s investment objective for its pension and postretirement plan assets is accomplished by investing in long-duration fixed income securities that primarily include U.S. corporate bonds of companies from diversified industries and U.S. Treasury securities that mirror Altria’s pension obligation benchmark, as well as U.S. and international equity index strategies that are intended to mirror broad market indices, including, the Standard & Poor’s 500 Index and Morgan Stanley Capital International (“MSCI”) Europe, Australasia, and the Far East (“EAFE”) Index. Altria’s pension and postretirement plans also invest in actively managed international equity securities of mid and small cap companies located in developed and emerging markets. For pension plan assets, the allocation to below investment grade securities represented 11% of the fixed income holdings or 8% of the total plan assets at December 31, 2020. The allocation to emerging markets represented 1% of equity holdings or less than 1% of total plan assets at December 31, 2020. For postretirement plan assets, the allocation to below investment grade securities represented 8% of the fixed income holdings or 3% of the total plan assets at December 31, 2020. There were no postretirement plan assets invested in emerging markets at December 31, 2020. Altria’s risk management practices for its pension and postretirement plans include (i) ongoing monitoring of asset allocation, investment performance and investment managers’ compliance with their investment guidelines, (ii) periodic rebalancing between equity and debt asset classes and (iii) annual actuarial re-measurement of plan liabilities. Altria’s expected rate of return on pension and postretirement plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. The forward-looking estimates are consistent with the long-term historical averages exhibited by returns on equity and fixed income securities. For determining its pension and postretirement net periodic benefit cost, Altria’s 2021 expected rate of return assumption remains unchanged from prior year at 6.6% and 7.7%, respectively. The fair values of the pension plan assets by asset category at December 31, 2020 and 2019 were as follows: 2020 2019 (in millions) Level 1 Level 2 Total Level 1 Level 2 Total U.S. and foreign government securities or their agencies: U.S. government and agencies $ — $ 950 $ 950 $ — $ 811 $ 811 U.S. municipal bonds — 64 64 — 57 57 Foreign government and agencies — 90 90 — 98 98 Corporate debt instruments: Above investment grade — 3,760 3,760 — 3,523 3,523 Below investment grade and no rating — 868 868 — 521 521 Common stock: International equities 316 — 316 296 — 296 U.S. equities 970 — 970 1,263 — 1,263 Other, net 21 356 377 (4) 479 475 $ 1,307 $ 6,088 $ 7,395 $ 1,555 $ 5,489 $ 7,044 Investments measured at NAV as a practical expedient for fair value: Collective investment funds U.S. large cap $ 924 $ 825 U.S. small cap 455 386 International developed markets 114 106 Total investments measured at NAV $ 1,493 $ 1,317 Other 23 (194) Fair value of plan assets, net $ 8,911 $ 8,167 Level 3 holdings and transactions were immaterial to total plan assets at December 31, 2020 and 2019. The fair value of the postretirement plan assets at December 31, 2020 and 2019 were as follows: 2020 2019 (in millions) Level 1 Level 2 Total Level 1 Level 2 Total U.S. and foreign government securities or their agencies: U.S. government and agencies $ — $ 6 $ 6 $ — $ 11 $ 11 Foreign government and agencies — 4 4 — 5 5 Corporate debt instruments: Above investment grade — 55 55 — 63 63 Below investment grade and no rating — 11 11 — 9 9 Other, net — 7 7 — 7 7 $ — $ 83 $ 83 $ — $ 95 $ 95 Investments measured at NAV as a practical expedient for fair value: Collective investment funds: U.S. large cap $ 97 $ 97 International developed markets 25 24 Total investments measured at NAV $ 122 $ 121 Other (4) (3) Fair value of plan assets, net $ 201 $ 213 There were no Level 3 postretirement plan holdings or transactions during 2020 and 2019. For a description of the fair value hierarchy and the three levels of inputs used to measure fair value, see Note 2. Summary of Significant Accounting Policies . Following is a description of the valuation methodologies used for investments measured at fair value. ▪ U.S. and Foreign Government Securities : U.S. and foreign government securities consist of investments in Treasury Nominal Bonds and Inflation Protected Securities and municipal securities. Government securities are valued at a price that is based on a compilation of primarily observable market information, such as broker quotes. Matrix pricing, yield curves and indices are used when broker quotes are not available. ▪ Corporate Debt Instruments : Corporate debt instruments are valued at a price that is based on a compilation of primarily observable market information, such as broker quotes. Matrix pricing, yield curves and indices are used when broker quotes are not available. ▪ Common Stock : Common stocks are valued based on the price of the security as listed on an open active exchange on last trade date. ▪ Collective Investment Funds : Collective investment funds consist of funds that are intended to mirror indices such as Standard & Poor’s 500 Index and MSCI EAFE Index. They are valued on the basis of the relative interest of each participating investor in the fair value of the underlying assets of each of the respective collective investment funds. The underlying assets are valued based on the net asset value (“NAV”), which is provided by the investment account manager as a practical expedient to estimate fair value. These investments are not classified by level but are disclosed to permit reconciliation to the fair value of plan assets. Cash Flows: 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 IRS regulations. Currently, Altria anticipates making employer contributions to its pension and postretirement plans of up to approximately $30 million and $60 million, respectively, i n 2021. However, this estimate is subject to change as a result of changes in tax and other benefit laws, changes in interest rates, as well as asset performance significantly above or below the assumed long-term rate of return for each respective plan. Estimated future benefit payments at December 31, 2020 were as follows: (in millions) Pension Postretirement 2021 $ 495 $ 120 2022 483 118 2023 483 115 2024 483 113 2025 485 112 2026-2030 2,437 563 Comprehensive Earnings/Losses The amounts recorded in accumulated other comprehensive losses at December 31, 2020 consisted of the following: (in millions) Pension Post- Post- Total Net loss $ (2,689) $ (541) $ (44) $ (3,274) Prior service (cost) credit (27) 41 (5) 9 Deferred income taxes 702 132 11 845 Amounts recorded in accumulated other comprehensive losses $ (2,014) $ (368) $ (38) $ (2,420) The amounts recorded in accumulated other comprehensive losses at December 31, 2019 consisted of the following: (in millions) Pension Post- Post- Total Net loss $ (2,565) $ (389) $ (45) $ (2,999) Prior service (cost) credit (27) 72 (5) 40 Deferred income taxes 670 86 11 767 Amounts recorded in accumulated other comprehensive losses $ (1,922) $ (231) $ (39) $ (2,192) The movements in other comprehensive earnings/losses during the year ended December 31, 2020 were as follows: (in millions) Pension Post- Post- Total Amounts reclassified to net earnings (losses) as components of net periodic Amortization: Net loss $ 134 $ 10 $ 19 $ 163 Prior service cost/credit 5 (30) — (25) Other expense (income): Net loss 10 — — 10 Prior service cost/credit — — — — Deferred income taxes (37) 5 (5) (37) $ 112 $ (15) $ 14 $ 111 Other movements during the year: Net loss $ (268) $ (162) $ (18) $ (448) Prior service cost/credit (5) (1) — (6) Deferred income taxes 69 41 5 115 $ (204) $ (122) $ (13) $ (339) Total movements in other comprehensive earnings/losses $ (92) $ (137) $ 1 $ (228) The movements in other comprehensive earnings/losses during the year ended December 31, 2019 were as follows: (in millions) Pension Post-retirement Post-employment Total Amounts reclassified to net earnings (losses) as components of net periodic benefit cost: Amortization: Net loss $ 159 $ 5 $ 20 $ 184 Prior service cost/credit 6 (30) 1 (23) Other expense (income): Net loss 20 — (4) 16 Prior service cost/credit 1 (5) — (4) Deferred income taxes (47) 7 (4) (44) $ 139 $ (23) $ 13 $ 129 Other movements during the year: Net loss $ (153) $ (67) $ 17 $ (203) Prior service cost/credit — (1) — (1) Deferred income taxes 38 18 (5) 51 $ (115) $ (50) $ 12 $ (153) Total movements in other comprehensive earnings/losses $ 24 $ (73) $ 25 $ (24) The movements in other comprehensive earnings/losses during the year ended December 31, 2018 were as follows: (in millions) Pension Post- Post- Total Amounts reclassified to net earnings (losses) as components of net periodic benefit cost: Amortization: Net loss $ 225 $ 21 $ 17 $ 263 Prior service cost/credit 4 (42) — (38) Other expense (income): Net loss 13 — — 13 Prior service cost/credit 3 — — 3 Deferred income taxes (61) 4 (4) (61) $ 184 $ (17) $ 13 $ 180 Other movements during the year: Adoption of ASU 2018-02 (1) $ (330) $ (55) $ (12) $ (397) Net loss (336) 264 (2) (74) Prior service cost/credit (26) (45) (6) (77) Deferred income taxes 91 (54) 2 39 $ (601) $ 110 $ (18) $ (509) Total movements in other comprehensive earnings/losses $ (417) $ 93 $ (5) $ (329) (1) Reflects the reclassification of the stranded income tax effects of the Tax Reform Act. |
Additional Information
Additional Information | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Information | Additional Information For the Years Ended December 31, (in millions) 2020 2019 2018 Research and development expense $ 131 $ 168 $ 252 Advertising expense $ 26 $ 33 $ 37 Interest and other debt expense, net: Interest expense $ 1,223 $ 1,322 $ 697 Interest income (14) (42) (32) $ 1,209 $ 1,280 $ 665 The activity in the allowance for discounts and allowance for returned goods for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Discounts Returned Goods Discounts Returned Goods Discounts Returned Goods Balance at beginning of year $ — $ 32 $ — $ 32 $ — $ 40 Charged to costs and expenses 633 98 604 127 620 97 Deductions (1) (633) (90) (604) (127) (620) (105) Balance at end of year $ — $ 40 $ — $ 32 $ — $ 32 (1) Represents the recording of discounts and returns for which allowances were created . The activity in the allowance for losses on finance assets for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 19 $ 19 $ 23 Decrease to allowance — — (4) Balance at end of year $ 19 $ 19 $ 19 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal proceedings covering a wide range of matters are pending or threatened in various U.S. and foreign jurisdictions against Altria and its subsidiaries, including PM USA and USSTC, as well as their respective indemnitees and Altria’s investees. Various types of claims may be raised in these proceedings, including product liability, unfair trade practices, antitrust, tax, contraband shipments, patent infringement, employment matters, claims for contribution and claims of competitors, shareholders or distributors. Legislative action, such as changes to tort law, also may expand the types of claims and remedies available to plaintiffs. 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 also may 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, also may 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 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 18. Contingencies : (i) management has concluded that it is not probable that a loss has been incurred in any of the pending 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 cases; and (iii) accordingly, management has not provided any amounts in the 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 U.S. 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) 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; (iii) e-vapor cases alleging violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), fraud, failure to warn, design defect, negligence, antitrust and unfair trade practices; and (iv) other tobacco-related litigation described below. Plaintiffs’ theories of recovery and the defenses raised in tobacco-related litigation are discussed below. The table below lists the number of certain tobacco-related cases pending in the U.S. against PM USA and/or Altria as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Individual Smoking and Health Cases (1) 148 104 100 Health Care Cost Recovery Actions (2) 1 1 1 E-vapor Cases (3) 1,563 101 — Other Tobacco-Related Cases (4) 3 4 4 (1) Includes 16 cases filed in New Mexico, 30 cases filed in Massachusetts and 60 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 1,471 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) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. (3) Includes 27 class action lawsuits, three of which were filed in Canada, 1,468 individual lawsuits and 68 “third party” lawsuits relating to JUUL e-vapor products, which include school districts, state and local government, tribal and healthcare organization lawsuits. JUUL is an additional named defendant in each of these lawsuits. (4) Includes one inactive smoking and health case alleging personal injury and purporting to be brought on behalf of a class of individual plaintiffs and two inactive class action lawsuits alleging that use 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 RICO. International Tobacco-Related Cases: As of January 25, 2021, (i) Altria is named as a defendant in three e-vapor class action lawsuits in Canada; (ii) PM USA is a named defendant in 10 health care cost recovery actions in Canada, eight of which also name Altria as a defendant; and (iii) PM USA and Altria are named as 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 January 25, 2021, one Engle progeny case against PM USA is set for trial through March 30, 2021. Trial dates are subject to change and many of the trials have been postponed due to the COVID-19 pandemic. Trial Results: Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 69 tobacco-related cases in which PM USA was a defendant. Verdicts in favor of PM USA and other defendants were returned in 44 of the 69 cases. These 44 cases were tried in Alaska (1), California (7), Connecticut (1), Florida (10), Louisiana (1), Massachusetts (4), 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). Of the 25 non- Engle progeny cases in which verdicts were returned in favor of plaintiffs, 20 have reached final resolution, and one case ( Gentile ) that was initially returned in favor of plaintiff was reversed post-trial and remains pending. 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 January 25, 2021. 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 judgments and settlements (including related costs and fees) totaling approximately $805 million and interest totaling approximately $218 million as of December 31, 2020. These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $365 million and related interest totaling approximately $56 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: (in millions) 2020 2019 2018 Accrued liability for tobacco and health litigation items at beginning of period (1) $ 14 $ 112 $ 106 Pre-tax charges for: Tobacco and health litigation 79 (1)(2) 72 (1)(2) 113 Related interest costs 4 5 18 Payments (1) (88) (3) (175) (3) (125) Accrued liability for tobacco and health litigation items at end of period (1) $ 9 $ 14 $ 112 (1) Includes amounts related to the costs of implementing the corrective communications remedy related to the Federal Government’s Lawsuit discussed below. (2) Includes certain costs related to pre-trial resolution of tobacco and health cases. (3) Includes amounts related to (i) payments for pre-trial resolution of tobacco and health cases and (ii) costs for pre-trial resolution of other tobacco and health cases accrued in the prior year and paid in the identified year. The accrued liability for tobacco and health litigation items, including related interest costs, was included in accrued liabilities on Altria’s consolidated balance sheets. Pre-tax charges for tobacco and health litigation were included in marketing, administration and research costs on Altria’s consolidated statements of earnings. Pre-tax charges for related interest costs were included in interest and other debt expense, net on Altria’s consolidated statements of earnings. Security for Judgments: To obtain stays of judgments pending appeal, PM USA has posted various forms of security. As of December 31, 2020, PM USA has posted appeal bonds totaling approximately $61 million, which have been collateralized with restricted cash that are included in assets on the consolidated balance sheets. 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 unfair 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 2020 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. Principe : In February 2020, a jury in a Florida state court returned a verdict in favor of plaintiff and against PM USA, awarding approximately $11 million in compensatory damages. There was no claim for punitive damages. PM USA’s appeal is pending in the Third District Court of Appeal. Greene : In September 2019, a jury in a Massachusetts state court returned a verdict in favor of plaintiffs and against PM USA, awarding approximately $10 million in compensatory damages. In May 2020, the court ruled on plaintiffs’ remaining claim and trebled the compensatory damages award to approximately $30 million. PM USA plans to file post-trial motions. Laramie : In August 2019, a jury in a Massachusetts state court returned a verdict in favor of plaintiff and against PM USA, awarding $11 million in compensatory damages and $10 million in punitive damages. PM USA and plaintiff have appealed. Gentile : In October 2017, a jury in a Florida state court returned a verdict in favor of plaintiff and against PM USA, awarding approximately $7.1 million in compensatory damages and allocating 75% of the fault to PM USA. PM USA appealed. In September 2019, the Florida Fourth District Court of Appeal reversed the judgment entered by the trial court, granted PM USA judgment on certain claims and remanded for a new trial on the remaining claims. Plaintiff petitioned the Florida Supreme Court for further review, which the court denied in January 2021. 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 February 2008, the trial court decertified the class. Pending Engl e Progeny Cases: The deadline for filing Engle progeny cases expired in January 2008, at which point a total of approximately 9,300 federal and state claims were pending. As of January 25, 2021, approximately 1,300 state court cases were pending against PM USA or Altria asserting individual claims by or on behalf of approximately 1,600 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 January 25, 2021, three cases were pending against PM USA in federal court representing the cases excluded from that agreement. Engle Progeny Trial Results: As of January 25, 2021, 134 federal and state Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court Engle decision. Seventy-six verdicts were returned in favor of plaintiffs and five verdicts ( Skolnick , Calloway , Oshinsky-Blacker, McCoy and Frogel ) that were initially returned in favor of plaintiffs were reversed post-trial or on appeal and remain pending. Forty-nine verdicts were returned in favor of PM USA, of which 43 were state cases. In addition, there have been a number of mistrials, only some of which have resulted in new trials as of January 25, 2021. 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 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 and defendants appealed the verdict and the appellate court affirmed the judgement in favor of the defendants. Three cases, Gloger, Rintoul ( Caprio ) and Duignan , resulted in verdicts in favor of plaintiffs following retrial of initial verdicts returned in favor of plaintiffs. Post-trial motions or appeals are pending. One case, Freeman , resulted in an appellate reversal of a jury verdict in favor of plaintiff, and a judgment in favor of PM USA. 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 January 25, 2021 where PM USA has recorded a provision in its consolidated financial statements because PM USA has determined that 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 January 25, 2021 but where PM USA has determined 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. 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 was denied by the district court. Upon appeal by PM USA, the Eleventh Circuit Court of Appeals affirmed the punitive damages award. $6 million accrual in the fourth quarter of 2018 Santoro March 2017 PM USA, R.J. Reynolds and Liggett Group (2) Broward $2 million (<$1 million PM USA) <$1 million The Fourth District Court of Appeal affirmed the compensatory damages award and reinstated the punitive damages award. Defendants’ motion for rehearing was denied. Defendants’ appeal to the Florida Supreme Court of the punitive damages award was also denied. <$1 million accrual for compensatory damages award in the second quarter of 2020 (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). (2) References to “R.J. Reynolds,” “Lorillard” and “Liggett Group” are to R.J. Reynolds Tobacco Company, Lorillard Tobacco Company and Liggett Group, LLC, respectively. 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 Duignan February 2020 (2) PM USA and Pinellas $3 million $12 million Appeal by defendants to Second District Court of Appeal pending. Cuddihee January 2020 PM USA Duval $3 million $0 Appeal by plaintiff and defendant to First District Court of Appeal pending. Rintoul ( Caprio ) November 2019 (2) PM USA and R.J. Reynolds Broward $9 million $74 million Appeal by plaintiff and defendants to Fourth District Court of Appeal pending. Gloger November 2019 (2) PM USA and R.J. Reynolds Miami-Dade $15 million $11 million Appeal by defendants to Third District Court of Appeal pending. McCall March 2019 PM USA Broward <$1 million (<$1 million PM USA) $0 New trial ordered on punitive damages. Neff March 2019 PM USA and R.J. Reynolds Broward $4 million $2 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Mahfuz February 2019 PM USA and R.J. Reynolds Broward $12 million $10 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Holliman February 2019 PM USA Miami-Dade $3 million $0 Defendant’s appeal to Third District Court of Appeal pending. Chadwell September 2018 PM USA Miami-Dade $2 million $0 Third District Court of Appeal affirmed the compensatory damages award. PM USA petitioned Florida Supreme Court for review. Case stayed pending Florida Supreme Court decision in Prentice . (3) Kaplan July 2018 PM USA and R.J. Reynolds Broward $2 million $2 million Fourth District Court of Appeal affirmed the verdict. Defendants’ motion for rehearing pending. (1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. (2) Plaintiff’s verdict following a retrial of an initial verdict in favor of plaintiff. (3) PM USA is not a defendant in this case. 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 R. Douglas November 2017 PM USA Duval <$1 million $0 Awaiting entry of final judgment by the trial court. Sommers April 2017 PM USA Miami-Dade $1 million $0 Third District Court of Appeal affirmed compensatory damages award and granted new trial on punitive damages. Florida Supreme Court denied PM USA’s petition for review of the Third District Court of Appeal's decision. PM USA paid approximately $1 million for the compensatory damages award and awaits the new trial on punitive damages. (2) Cooper (Blackwood) September 2015 PM USA and R.J. Reynolds Broward $5 million (<$1 million PM USA) $0 Fourth District Court of Appeal affirmed judgment and granted a new trial on punitive damages. D. Brown January 2015 PM USA Federal Court - Middle District of Florida $8 million $9 million Appeal by defendant to U.S. Court of Appeals for the Eleventh Circuit stayed pending Florida Supreme Court decision in Prentice . (3) Harris July 2014 PM USA, Federal Court - Middle District of Florida $2 million (<$1 million PM USA) $0 U.S. Court of Appeals for the Eleventh Circuit reversed the judgment against PM USA and remanded to the district court to enter judgment for the defendants. (1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. (2) Plaintiff was granted an award of approximately $3 million in fees, costs and interest that PM USA has appealed. (3) PM USA is not a defendant in this case. Engle Cases Concluded Within Past 12 Months (1) (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount Payment Date Dean (Kerrivan) (2) October 2014 PM USA and R.J. Reynolds Federal Court - Middle District of Florida Third quarter of 2020 $26 million August 2020 Landi (3) June 2018 PM USA and R.J. Reynolds Broward Second quarter of 2020 $10 million July 2020 Theis (4) May 2018 PM USA and Sarasota First quarter of 2020 $17 million February 2020 (1) In four cases in which PM USA paid the judgments more than a year ago, Naugle, Gore , M. Brown and Jordan , plaintiffs were awarded approximately $8 million, $2 million, $9 million and $4 million in fees and costs, respectively. PM USA has appealed in all of these cases. (2) In August 2020, the U.S. Court of Appeals for the Eleventh Circuit denied the defendants’ petition for rehearing. As a result, in the third quarter of 2020, PM USA recorded a pre-tax provision of approximately $26 million, reflecting its portion of the judgment plus interest, and paid this amount in August 2020. (3) In June 2020, the Fourth District Court of Appeal affirmed the compensatory damages award. As a result, in the second quarter of 2020, PM USA recorded a pre-tax provision of approximately $10 million for the judgment plus interest and paid this amount in July 2020. (4) In February 2020, the Florida Second District Court of Appeal denied PM USA’s petition for review. As a result, in the first quarter of 2020, PM USA recorded a pre-tax provision of approximately $17 million for the judgment plus interest and paid this amount. 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 have been unsuccessful in various challenges to the bond cap statute in Florida state court. No federal court has yet addressed the constitutionality of the bond cap statute or the applicability of the bond cap to Engle progeny cases tried in federal court. From time to time, legislation has been presented to the Florida legislature that would repeal the bond cap statute; however to date, no legislation repealing the statute has passed. Other Smoking and Health Class Actions: Since the dismissal in May 1996 of a purported nationwide class action brought on behalf of allegedly addicted smokers, plaintiffs have filed numerous putative smoking and health class action suits in various state and federal courts. In general, these cases purport to be brought on behalf of residents of a particular state or states (although a few cases purport to be nationwide in scope) and raise addiction claims and, in many cases, claims of physical injury as well. Class certification has been denied or reversed by courts in 61 smoking and health class actions involving PM USA in Arkansas (1), California (1), Delaware (1), the District of Columbia (2), Florida (2), Illinois (3), Iowa (1), Kansas (1), Louisiana (1), Maryland (1), Michigan (1), Minnesota (1), Nevada (29), New Jersey (6), New York (2), Ohio (1), Oklahoma (1), Oregon (1), Pennsylvania (1), Puerto Rico (1), South Carolina (1), Texas (1) and Wisconsin (1). See Certain Other Tobacco-Related Litigation below for a discussion of “Lights” and “Ultra Lights” class action cases and medical monitoring class action cases pending against PM USA. As of January 25, 2021, PM USA and Altria are named as defendants, along with other cigarette manufacturers, in seven class actions filed in the Canadian provinces of Alberta, Manitoba, Nova Scotia, Saskatchewan, British Columbia and Ontario. In Saskatchewan, British Columbia (two separate cases) and Ontario, plaintiffs seek class certification on behalf of individuals who suffer or have suffered from various diseases, including chronic obstructive pulmonary disease, emphysema, heart disease or cancer, after smoking defendants’ cigarettes. In the actions filed in Alberta, Manitoba and Nova Scotia, plaintiffs seek certification of classes of all individuals who smoked defendants’ cigarettes. In March 2019, all of these class actions were stayed as a result of three Canadian tobacco manufacturers (none of which is related to Altria or its subsidiaries) seeking protection under Canada’s Companies’ Creditors Arrangement Act (which is similar to Chapter 11 bankruptcy in the U.S.). The companies entered into these proceedings following a Canadian appellate court upholding two smoking and health class action verdicts against those companies totaling approximately CAD $13 billion. See Guarantees and Other Similar Matters below for a discussion of the Distribution Agreement between Altria and PMI, which provides for indemnities for certain liabilities concerning tobacco products. Health Care Cost Recovery Litigation Overview: In the health care cost recovery litigation, governmental entities seek reimbursement of health care cost expenditures allegedly caused by tobacco products and, in some cases, of future expenditures and damages. Relief sought by some but not all plaintiffs includes punitive damages, multiple damages and other statutory damages and penalties, injunctions prohibiting alleged marketing and sales to minors, disclosure of research, disgorgement of profits, funding of anti-smoking programs, additional disclosure of nicotine yields, and payment of attorney and expert witness fees. Although there have been some decisions to the contrary, most judicial decisions in the U.S. have dismissed all or most health care cost recovery claims against cigarette manufacturers. Nine federal circuit courts of appeals and eight state appellate courts, relying primarily on grounds that plaintiffs’ claims were too remote, have ordered or affirmed dismissals of health care cost recovery actions. The United States Supreme Court has refused to consider plaintiffs’ appeals from the cases decided by five federal circuit courts o |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) 2020 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,359 $ 6,367 $ 7,123 $ 6,304 Gross profit $ 2,873 $ 3,287 $ 3,717 $ 3,146 Net earnings (losses) $ 1,550 $ 1,938 $ (956) $ 1,922 Net earnings (losses) attributable to Altria $ 1,552 $ 1,943 $ (952) $ 1,924 Per share data: Basic and diluted earnings (losses) per share attributable to Altria $ 0.83 $ 1.04 $ (0.51) $ 1.03 2019 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 5,628 $ 6,619 $ 6,856 $ 6,007 Gross profit $ 2,811 $ 3,319 $ 3,497 $ 3,084 Net earnings (losses) $ 1,121 $ 1,997 $ (2,602) $ (1,814) Net earnings (losses) attributable to Altria $ 1,120 $ 1,996 $ (2,600) $ (1,809) Per share data: Basic earnings (losses) per share attributable to Altria $ 0.60 $ 1.07 $ (1.39) $ (0.97) Diluted earnings (losses) per share attributable to Altria $ 0.60 $ 1.07 $ (1.39) $ (1.00) During 2020 and 2019, the following pre-tax (gains) or charges were included in net earnings attributable to Altria: 2020 Quarters (in millions) 1st 2nd 3rd 4th Impairment of JUUL equity securities $ — $ — $ 2,600 $ — JUUL changes in fair value — — — (100) Tobacco and health litigation items, including accrued interest 24 18 34 7 Asset impairment, exit, implementation and acquisition-related costs 395 8 12 16 ABI-related special items 56 120 513 74 Cronos-related special items 89 (88) 143 (93) PMCC residual value adjustments — 34 — 91 COVID-19 special items — 50 — — $ 564 $ 142 $ 3,302 $ (5) 2019 Quarters (in millions) 1st 2nd 3rd 4th Impairment of JUUL equity securities $ — $ — $ 4,500 $ 4,100 Tobacco and health litigation items, including accrued interest 17 28 3 29 Asset impairment, exit, implementation and acquisition-related costs 159 45 11 116 ABI-related special items (1) 163 (129) (23) (394) Cronos-related special items 425 119 549 (165) $ 764 $ 63 $ 5,040 $ 3,686 (1) Prior period amounts have been recast to conform with current period presentation for certain ABI mark-to-market adjustments. As discussed in Note 14. Income Taxes , Altria has recognized income tax benefits and charges in the consolidated statements of earnings (losses) during 2020 and 2019 as a result of various tax events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. |
Depreciation and Amortization | Property, plant and equipment are stated at historical costs and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods up to 25 years, and buildings and building improvements over periods up to 50 years. Definite-lived intangible assets are amortized over their estimated useful lives up to 25 years. |
Impairment Testing and Asset Valuation | Altria reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable. Altria performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, Altria groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If Altria determines that an impairment exists, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Altria also reviews the estimated remaining useful lives of long-lived assets whenever events or changes in business circumstances indicate the lives may have changed.Altria conducts a required annual review of goodwill and indefinite-lived intangible assets for potential impairment, and more frequently if an event occurs or circumstances change that would require Altria to perform an interim review. Altria has the option of first performing a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test. If necessary, Altria will perform a single step quantitative impairment test. Additionally, Altria has the option to unconditionally bypass the qualitative assessment and perform a single step quantitative assessment. If the carrying value of a reporting unit that includes goodwill exceeds its fair value, which is determined using discounted cash flows, goodwill is considered impaired. The amount of impairment loss is measured as the difference between the carrying value and the fair value of a reporting unit, but is limited to the total amount of goodwill allocated to a reporting unit. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, which is determined using discounted cash flows, the intangible asset is considered impaired and is reduced to fair value in the period identified. |
Derivative Financial Instruments | Altria enters into derivatives 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. Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Derivative financial instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges at the inception of the contracts. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recorded in the consolidated statements of earnings (losses) each period. For cash flow hedges, changes in the fair value of the derivative are recorded each period in accumulated other comprehensive earnings (losses) and are reclassified to the consolidated statements of earnings (losses) in the same periods in which operating results are affected by the respective hedged item. For net investment hedges, changes in the fair value of the derivative or foreign currency transaction gains or losses on a nonderivative hedging instrument are recorded in accumulated other comprehensive earnings (losses) to offset the change in the value of the net investment being hedged. Such amounts remain in accumulated other comprehensive earnings (losses) until the complete or substantially complete liquidation of the underlying foreign operations occurs or, for investments in foreign entities accounted for under the equity method of accounting, Altria’s economic interest in the underlying foreign entity decreases. Cash flows from hedging instruments are classified in the same manner as the respective hedged item in the consolidated statements of cash flows. To qualify for hedge accounting, the hedging relationship, both at inception of the hedge and on an ongoing basis, is expected to be highly effective at offsetting changes in the fair value of the hedged risk during the period that the hedge is designated. Altria formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, the strategy for undertaking the hedge transaction and method for assessing hedge effectiveness. Additionally, for qualified hedges of forecasted transactions, if it becomes probable that a forecasted transaction will not occur, the hedge would no longer be considered effective and all of the derivative gains and losses would be recorded in the consolidated statement of earnings (losses) in the current period. For financial instruments that are not designated as hedging instruments or do not qualify for hedge accounting, changes in fair value are recorded in the consolidated statement of earnings (losses) each period. Altria does not enter into or hold derivative financial instruments for trading or speculative purposes. |
Employee Benefit Plans | Altria provides a range of benefits to certain employees and retired employees, including pension, postretirement health care and postemployment benefits. Altria records annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions as to discount rates, assumed rates of return on plan assets, mortality, compensation increases, turnover rates and health care cost trend rates.Altria recognizes the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheets and records as a component of other comprehensive earnings (losses), net of deferred income taxes, the gains or losses and prior service costs or credits that have not been recognized as components of net periodic benefit cost. The gains or losses and prior service costs or credits recorded as components of other comprehensive earnings (losses) are subsequently amortized into net periodic benefit cost in future years. |
Environmental Costs | Altria is subject to laws and regulations relating to the protection of the environment. Altria provides for expenses associated with environmental remediation obligations on an undiscounted basis when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change.Compliance with environmental laws and regulations, including the payment of any remediation and compliance costs or damages and the making of related expenditures, has not had, and is not expected to have, a material adverse effect on Altria’s consolidated results of operations, capital expenditures, financial position or cash flows. |
Fair Value Measurements | Altria measures certain assets and liabilities at fair value. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Altria uses a fair value hierarchy, which gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs used to measure fair value are: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Guarantees | Altria recognizes a liability for the fair value of the obligation of qualifying guarantee activities. |
Income Taxes | Significant judgment is required in determining income tax provisions and in evaluating tax positions. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Altria records a valuation allowance when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Altria recognizes a benefit for uncertain tax positions when a tax position taken or expected to be taken in a tax return is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit |
Inventories | The last-in, first-out (“LIFO”) method is used to determine the cost of substantially all tobacco inventories. The cost of the remaining inventories is determined using the first-in, first-out (“FIFO”) and average cost methods. Inventories that are measured using the LIFO method are stated at the lower of cost or market. Inventories that are measured using the FIFO and average cost methods are stated at the lower of cost and net realizable value. It is a generally recognized industry practice to classify leaf tobacco and wine inventories as current assets although part of such inventory, because of the duration of the curing and aging process, ordinarily would not be used within one year. |
Equity Method Investments | Investments in equity securities in which Altria has the ability to exercise significant influence over the operating and financial policies of the investee are accounted for under the equity method of accounting or the fair value option. The election of the fair value option is irrevocable and is made on an investment by investment basis. Altria elected to account for its investments in ABI and Cronos under the equity method of accounting. Altria’s share of equity earnings (losses) and other adjustments associated with these equity investments are included in income (losses) from equity investments in the consolidated statements of earnings (losses). The carrying value for each of Altria’s equity investments in ABI and Cronos is reported in investments in equity securities on the consolidated balance sheets. Equity method investments accounted for under the equity method of accounting are reported at cost and adjusted each period for Altria’s share of income (loss) and dividends paid, if any. Altria reports its share of ABI’s and Cronos’s results using a one-quarter lag because results are not available in time for Altria to record them in the concurrent period. Altria reviews its equity investments accounted for under the equity method of accounting for impairment by comparing the fair value of each of its investments to their carrying value. If the carrying value of an investment exceeds its fair value and the loss in value is other than temporary, the investment is considered impaired and reduced to fair value, and the impairment is recognized in the period identified. The factors used to make this determination include the duration and magnitude of the fair value decline, the financial condition and near-term prospects of the investee, and Altria’s intent and ability to hold its investment until recovery. Altria accounts for its investment in ABI under the equity method of accounting because Altria has the ability to exercise significant influence over the operating and financial policies of ABI, including having active representation on ABI’s board of directors and certain ABI board committees. Through this representation, Altria participates in ABI policy making processes. Altria reports its share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for Altria to record them in the concurrent period. |
Equity Securities without Readily Determinable Fair Value | Following Share Conversion (as defined in Note 6. Investments in Equity Securities Altria uses an income approach to estimate the fair value of its investment in JUUL. The income approach reflects the discounting of future cash flows for the U.S. and international markets at a rate of return that incorporates the risk-free rate for the use of those funds, the expected rate of inflation and the risks associated with realizing future cash flows. Future cash flows were based on a range of scenarios that consider various potential regulatory and market outcomes. In determining the fair value of its investment in JUUL, in 2020 and 2019, Altria made various judgments, estimates and assumptions, the most significant of which were sales volume, operating margins, discount rates and perpetual growth rates. All significant inputs used in the valuation are classified in Level 3 of the fair value hierarchy. Additionally in determining these significant assumptions, Altria made judgments regarding the: (i) likelihood and extent of various potential regulatory actions and the continued adverse public perception impacting the e-vapor category and specifically JUUL, (ii) risk created by the number and types of legal cases pending against JUUL, and (iii) expectations for the future state of the e-vapor category including competitive dynamics. As disclosed in Note 8. Short-term Borrowings and Borrowing Arrangements , Altria financed the JUUL Transaction and the Investment in Cronos (defined below) through a senior unsecured term loan agreement (the “Term Loan Agreement”). Costs incurred to effect the |
Litigation Contingencies and Costs | Altria and its subsidiaries record provisions in the consolidated financial statements for pending litigation when it is determined that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Litigation defense costs are expensed as incurred and included in marketing, administration and research costs in the consolidated statements of earnings (losses). |
Marketing Costs | Altria’s businesses promote their products with consumer incentives, trade promotions and consumer engagement programs. These consumer incentive and trade promotion activities, which include discounts, coupons, rebates, in-store display incentives and volume-based incentives, do not create a distinct deliverable and are, therefore, recorded as a reduction of revenues. Consumer engagement program payments are made to third parties. Altria’s businesses expense these consumer engagement programs, which include event marketing, as incurred and such expenses are included in marketing, administration and research costs in Altria’s consolidated statements of earnings (losses). For interim reporting purposes, Altria’s businesses charge consumer engagement programs and certain consumer incentive expenses to operations as a percentage of sales, based on estimated sales and related expenses for the full year. |
Revenue Recognition | Altria’s businesses generate substantially all of their revenue from sales contracts with customers. While Altria’s businesses enter into separate sales contracts with each customer for each product type, all sales contracts are similarly structured. These contracts create an obligation to transfer product to the customer. All performance obligations are satisfied within one year; therefore, costs to obtain contracts are expensed as incurred and unsatisfied performance obligations are not disclosed. There is no financing component because Altria’s businesses expect, at contract inception, that the period between when Altria’s businesses transfer product to the customer and when the customer pays for that product will be one year or less.Altria’s businesses define net revenues as revenues, which include excise taxes and shipping and handling charges billed to customers, net of cash discounts for prompt payment, sales returns (also referred to as returned goods) and sales incentives. Altria’s businesses exclude from the transaction price sales taxes and value-added taxes imposed at the time of sale (which do not include excise taxes on cigarettes, cigars, smokeless tobacco or wine billed to customers). Altria’s businesses recognize revenues from sales contracts with customers upon shipment of goods when control of such products is obtained by the customer. Altria’s businesses determine that a customer obtains control of the product upon shipment when title of such product and risk of loss transfers to the customer. Altria’s businesses account for shipping and handling costs as fulfillment costs and such amounts are classified as part of cost of sales in Altria’s consolidated statements of earnings (losses). Altria’s businesses record an allowance for returned goods, based principally on historical volume and return rates, which is included in other accrued liabilities on Altria’s consolidated balance sheets. Altria’s businesses record sales incentives, which consist of consumer incentives and trade promotion activities, as a reduction to revenues (a portion of which is based on amounts estimated as being due to wholesalers, retailers and consumers at the end of a period) based principally on historical volume, utilization and redemption rates. Expected payments for sales incentives are included in accrued marketing liabilities on Altria’s consolidated balance sheets. Payment terms vary depending on product type. Altria’s businesses consider payments received in advance of product shipment as deferred revenue, which is included in other accrued liabilities on Altria’s consolidated balance sheets until revenue is recognized. PM USA receives payment in advance of a customer obtaining control of the product. USSTC receives substantially all payments within one business day of the customer obtaining control of the product. Ste. Michelle receives substantially all payments from customers within 45 days of the customer obtaining control of the product. Amounts due from customers are included in receivables on Altria’s consolidated balance sheets. |
New Accounting Pronouncements and New Accounting Guidance Not Yet Adopted | During the second quarter of 2020, Altria began complying early with U.S. Securities and Exchange Commission (“SEC”) Regulation S-X Rules 13-01 and 13-02 regarding the financial disclosure requirements for registered debt securities with guarantees. In October 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-09, Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 , to reflect changes made to its disclosure rules on registered debt securities with guarantees. The new rules replace the previously required condensed consolidating financial information with summarized financial information of the issuer and the guarantor and, among other things, require expanded qualitative disclosures. Altria has elected to provide this information in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section in its Annual Report on Form 10-K as permitted by the new rules. During the fourth quarter of 2020, Altria began complying early with the SEC’s amendments to the financial disclosures rules regarding acquired and disposed businesses. Among other changes, the amendments impact SEC rules relating to the definition of “significant” subsidiaries and the requirements related to the provision of financial statements for “significant” acquisitions. On January 1, 2020, Altria adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments and all related ASU amendments (collectively “ASU No. 2016-13”). This 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 adoption of ASU No. 2016-13 did not have a material impact on Altria’s consolidated financial statements. Additionally, on January 1, 2020, Altria adopted ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU No. 2018-15”). This 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 adoption of ASU No. 2018-15 did not have a material impact on Altria’s consolidated financial statements. Standards Description Effective Date for Public Entity Effect on Financial Statements ASU 2019-12 Simplifying the Accounting for Income Taxes (Topic 740) The guidance removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Altria’s adoption of this guidance is not expected to have a material impact on its consolidated financial statements. ASU 2020-01 Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Altria’s adoption of this guidance is not expected to have a material impact on its consolidated financial statements. ASU 2020-06 Accounting for Convertible Instruments and Contracts in an Entity ’ s Own Equity The guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Key provisions of the guidance include reducing the number of accounting models, simplifying the earnings per share calculations and expanding the disclosures related to convertible instruments. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Altria is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Methodology of Determining Fair Value of Pension Assets | Following is a description of the valuation methodologies used for investments measured at fair value. ▪ U.S. and Foreign Government Securities : U.S. and foreign government securities consist of investments in Treasury Nominal Bonds and Inflation Protected Securities and municipal securities. Government securities are valued at a price that is based on a compilation of primarily observable market information, such as broker quotes. Matrix pricing, yield curves and indices are used when broker quotes are not available. ▪ Corporate Debt Instruments : Corporate debt instruments are valued at a price that is based on a compilation of primarily observable market information, such as broker quotes. Matrix pricing, yield curves and indices are used when broker quotes are not available. ▪ Common Stock : Common stocks are valued based on the price of the security as listed on an open active exchange on last trade date. ▪ Collective Investment Funds |
Basis of Presentation | The consolidated financial statements include Altria, as well as its wholly owned and majority-owned subsidiaries. Investments in equity securities in which Altria has the ability to exercise significant influence over the operating and financial policies of the investee are accounted for under the equity method of accounting or the fair value option. Investments in equity securities that Altria does not have the ability to exercise significant influence over the operating and financial policies of the investee are accounted for as an investment in an equity security. All intercompany transactions and balances have been eliminated.The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and expenses during the reporting periods. Significant estimates and assumptions include, among other things, pension and benefit plan assumptions, lives and valuation assumptions for goodwill and other intangible assets, impairment and fair value evaluations for equity investments, marketing programs, income taxes, and the estimated residual values of finance leases. Actual results could differ from those estimates. |
Investment, Policy | Altria accounts for its investments in ABI and Cronos under the equity method of accounting using a one-quarter lag. Altria accounts for its equity investment in JUUL under the fair value option. |
Income Tax Uncertainties, Policy | Altria recognizes accrued interest and penalties associated with uncertain tax positions as part of the tax provision. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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 2019-12 Simplifying the Accounting for Income Taxes (Topic 740) The guidance removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Altria’s adoption of this guidance is not expected to have a material impact on its consolidated financial statements. ASU 2020-01 Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Altria’s adoption of this guidance is not expected to have a material impact on its consolidated financial statements. ASU 2020-06 Accounting for Convertible Instruments and Contracts in an Entity ’ s Own Equity The guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Key provisions of the guidance include reducing the number of accounting models, simplifying the earnings per share calculations and expanding the disclosures related to convertible instruments. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Altria is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and other intangible assets, net, by segment were as follows: Goodwill Other Intangible Assets, net (in millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Smokeable products $ 99 $ 99 $ 3,044 $ 3,071 Oral tobacco products 5,078 5,078 9,164 9,196 Wine — — 237 238 Other — — 170 182 Total $ 5,177 $ 5,177 $ 12,615 $ 12,687 The changes in goodwill and net carrying amount of intangible assets were as follows: 2020 2019 (in millions) Goodwill Other Intangible Assets, net Goodwill Other Intangible Assets, net Balance at January 1 $ 5,177 $ 12,687 $ 5,196 $ 12,279 Changes due to: Acquisitions (1) — — 55 451 Asset impairment — — (74) — Amortization — (72) — (43) Balance at December 31 $ 5,177 $ 12,615 $ 5,177 $ 12,687 (1) Substantially all of the 2019 changes reflect Helix’s acquisition of the Burger Group, which held assets consisting primarily of intellectual property. For further discussion, see Note 1. Background and Basis of Presentation . |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Indefinite-lived intangible assets $ 11,676 $ — $ 11,676 $ — Definite-lived intangible assets 1,275 336 1,275 264 Total other intangible assets $ 12,951 $ 336 $ 12,951 $ 264 |
Schedule of Definite-Lived Intangible Assets | Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Indefinite-lived intangible assets $ 11,676 $ — $ 11,676 $ — Definite-lived intangible assets 1,275 336 1,275 264 Total other intangible assets $ 12,951 $ 336 $ 12,951 $ 264 |
Asset Impairment, Exit and Im_2
Asset Impairment, Exit and Implementation Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Pre-tax Asset Impairment, Exit, and Implementation Costs | Pre-tax asset impairment, exit and implementation costs (income) consisted of the following: (in millions) Asset Impairment Implementation Costs Total For the year ended December 31, 2020 2019 2018 2020 (1) 2019 (2) 2018 (1) 2020 2019 2018 Smokeable products $ 2 $ 59 $ 79 $ — $ 33 $ 1 $ 2 $ 92 $ 80 Oral tobacco products (5) 9 20 — 5 3 (5) 14 23 Wine (3) — 76 54 411 — — 411 76 54 All other — 14 227 — (10) 63 — 4 290 General corporate (1) 1 3 — — — (1) 1 3 Total (4) 159 383 411 28 67 407 187 450 Plus amounts included in net periodic benefit (income) cost, excluding service cost (4) — 29 3 — — — — 29 3 Total $ (4) $ 188 $ 386 $ 411 $ 28 $ 67 $ 407 $ 216 $ 453 (1) Included in cost of sales in Altria’s consolidated statements of earnings (losses). (2) Included in cost of sales ($2 million) and marketing, administration and research costs ($26 million) in Altria’s consolidated statement of earnings (losses). (3) Includes impairment of goodwill for the wine reporting unit in 2019 and impairment of the Columbia Crest trademark in 2018. See Note 4. Goodwill and Other Intangible Assets, net . (4) Represents settlement and curtailment costs. See Note 16. Benefit Plans . |
Schedule of Movement in Restructuring Liabilities | The movement in the restructuring liabilities, substantially all of which were severance liabilities, for the years ended December 31, 2020 and 2019 was as follows: (in millions) Balances at December 31, 2018 $ 155 Charges 59 Cash spent (147) Balances at December 31, 2019 67 Cost reversals, net (4) Cash spent (47) Balances at December 31, 2020 $ 16 |
Investments in Equity Securit_2
Investments in Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment | Altria’s investments at December 31, 2020 and 2019 consisted of the following: Carrying Amount (in millions) December 31, 2020 December 31, 2019 ABI $ 16,651 $ 18,071 JUUL 1,705 4,205 Cronos (1) 1,173 1,305 Total $ 19,529 $ 23,581 (1) December 31, 2020 included Altria’s equity method investment in Cronos ($1,010 million), the Cronos warrant ($139 million) and the Fixed-price Preemptive Rights ($24 million), (collectively, “Investment in Cronos”). The Investment in Cronos at December 31, 2019 included Altria’s equity method investment in Cronos ($1,002 million), the Cronos warrant ($234 million) and the Fixed-price Preemptive Rights ($69 million). See below for further discussion. |
Equity Method Investments | Income (losses) from equity investments accounted for under the equity method of accounting and fair value option for the years ended December 31, 2020, 2019 and 2018 consisted of the following: (in millions) 2020 2019 2018 ABI (1) $ (223) $ 1,229 $ 890 Cronos 12 496 — Income (losses) from investments under equity method of accounting (211) 1,725 890 JUUL 100 — — Income (losses) from equity investments $ (111) $ 1,725 $ 890 (1) During 2020, ABI amounts recorded by Altria included pre-tax losses associated with its share of ABI’s (i) mark-to-market losses on certain ABI financial instruments associated with its share commitments, (ii) completion of the sale of its Australia subsidiary and (iii) goodwill impairment charge associated with its Africa businesses. These amounts included Altria’s share of amounts recorded by ABI, and may also include additional adjustments related to (i) conversion from international financial reporting standards to GAAP and (ii) adjustments to Altria’s investment required under the equity method of accounting. Summary financial data of ABI is as follows: For Altria’s Year Ended December 31, (in millions) 2020 (1) 2019 (1) 2018 (1) Net revenues $ 48,294 $ 54,187 $ 55,500 Gross profit $ 28,438 $ 33,735 $ 34,986 Earnings from continuing operations $ 4,265 $ 10,530 $ 9,020 Net earnings $ 4,266 $ 10,530 $ 9,020 Net earnings attributable to ABI $ 3,323 $ 9,189 $ 7,641 At September 30, (in millions) 2020 (1) 2019 (1) Current assets $ 28,672 $ 27,353 Long-term assets $ 185,106 $ 199,591 Current liabilities $ 34,884 $ 36,819 Long-term liabilities $ 117,400 $ 119,025 Noncontrolling interests $ 8,459 $ 8,765 (1) Reflects the one-quarter lag. Summary financial data of Cronos is as follows: For Altria’s Year Ended December 31, (in millions) 2020 (1) 2019 (1) Net revenues $ 37 $ 21 Gross profit $ (31) $ 10 Earnings from continuing operations $ 99 $ 1,117 Net earnings $ 98 $ 1,117 Net earnings attributable to Cronos $ 100 $ 1,117 At September 30, (in millions) 2020 (1) 2019 (1) Current assets $ 1,394 $ 1,575 Long-term assets $ 525 $ 511 Current liabilities $ 143 $ 457 Long-term liabilities $ 12 $ 7 Noncontrolling interests $ (3) $ — (1) Reflects the one-quarter lag. Summary financial data of Cronos’s results for Altria’s year ended December 31, 2019 include Cronos’s results for the period March 8, 2019 through September 30, 2019. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the beginning and ending balance of the JUUL investment, which is classified in Level 3 of the fair value hierarchy: (in millions) Balance at December 31, 2019 $ — Transfers into Level 3 fair value 1,605 Unrealized gains included with income / (losses) from equity investments 100 Balance at December 31, 2020 $ 1,705 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The following table provides (i) the aggregate notional amounts of foreign currency contracts and (ii) the aggregate carrying value and fair value of foreign currency denominated debt: (in millions) December 31, 2020 December 31, 2019 Foreign currency contracts (notional amounts) $ 1,066 $ 2,246 Foreign currency denominated debt Carrying value 5,171 4,741 Fair value 5,687 5,057 For the Years Ended December 31, (in millions) 2020 2019 Fixed-price Preemptive Rights $ (45) $ (434) Cronos warrant (95) (977) Total $ (140) $ (1,411) Gain (Loss) Recognized in Accumulated Other Comprehensive Losses Gain (Loss) Recognized in Net Earnings (Losses) (1) For the Years Ended December 31, (in millions) 2020 2019 2020 2019 Foreign currency contracts $ (79) $ 23 $ 40 $ 36 Foreign currency denominated debt (424) 35 — — Total $ (503) $ 58 $ 40 $ 36 |
Aggregate Fair Value and Carrying Value | The following table provides the aggregate carrying value and fair value of Altria’s total long-term debt: (in millions) December 31, 2020 December 31, 2019 Carrying value $ 29,471 $ 28,042 Fair value 34,682 30,710 |
Fair Value Measurement Inputs and Valuation Techniques | The fair values of the Fixed-price Preemptive Rights and Cronos warrant are estimated using Black-Scholes option-pricing models, adjusted for observable inputs (which are classified in Level 1 of the fair value hierarchy), including share price, and 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: December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Fixed-price Preemptive Rights Cronos Warrant Share price (1) C$8.84 C$9.97 C$8.84 C$9.97 Expected life (2) 1.05 years 1.67 years 2.18 years 3.18 years Expected volatility (3) 80.68% 81.61% 80.68% 81.61% Risk-free interest rate (4)(5) 0.13% 1.71% 0.21% 1.69% Expected dividend yield (6) —% —% —% —% (1) Based on the closing market price for Cronos common stock on the Toronto Stock Exchange on the date indicated. (2) Based on the weighted-average expected life of the Fixed-price Preemptive Rights (with a range from approximately 0.25 year to 5 years at December 31, 2020 and 0.25 year to 6 years at December 31, 2019) and the March 8, 2023 expiration date of the Cronos warrant. (3) Based on a blend of historical volatility levels of the underlying equity security and peer companies. (4) Based on the implied yield currently available on Canadian Treasury zero coupon issues (with a range from approximately 0.06% to 0.39% at December 31, 2020 and 1.66% to 1.74% at December 31, 2019) weighted for the remaining expected life of the Fixed-price Preemptive Rights. (5) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the Cronos warrant. (6) 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 Cronos warrant, which are classified in Level 3 of the fair value hierarchy: (in millions) 2020 2019 Balance at January 1 $ 303 $ — Initial investment in Fixed-price Preemptive Rights and warrant — 1,736 Exercise of Fixed-price Preemptive Rights — (22) Pre-tax earnings (losses) recognized in net earnings (140) (1,411) Balance at December 31 $ 163 $ 303 |
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location | The fair values of Altria’s derivative financial instruments on a gross basis included on the consolidated balance sheets were as follows: Fair Value of Assets Fair Value of Liabilities (in millions) Balance Sheet Classification December 31, 2020 December 31, 2019 Balance Sheet Classification December 31, 2020 December 31, 2019 Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ — $ 46 Other accrued liabilities $ 87 $ 7 Foreign currency contracts Other assets — — Other liabilities — 21 Total $ — $ 46 $ 87 $ 28 Derivatives not designated as hedging instruments: Cronos warrant Investments in equity securities $ 139 $ 234 Fixed-price Preemptive Rights Investments in equity securities 24 69 Total $ 163 $ 303 Total derivatives $ 163 $ 349 $ 87 $ 28 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | At December 31, 2020 and 2019, Altria’s long-term debt consisted of the following: (in millions) 2020 2019 USD notes, 2.350% to 10.20%, interest payable semi-annually, due through 2059 (1) $ 24,258 $ 23,259 USD Debenture, 7.75%, interest payable semi-annually, due 2027 42 42 Euro notes,1.000% to 3.125%, interest payable annually, due through 2031 (2) 5,171 4,741 29,471 28,042 Less current portion of long-term debt 1,500 1,000 $ 27,971 $ 27,042 (1) Weighted-average coupon interest rate of 4.6% at December 31, 2020 and 2019 . (2) Weighted-average coupon interest rate of 2.0% at December 31, 2020 and 2019 . |
Aggregate Maturities of Long-Term Debt | At December 31, 2020, aggregate maturities of Altria’s long-term debt were as follows: (in millions) 2021 $ 1,500 2022 2,900 2023 1,877 2024 2,400 2025 1,666 Thereafter 19,358 29,701 Less: debt issuance costs 151 debt discounts 79 $ 29,471 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule Components of Issued, Repurchased and Outstanding Shares | At December 31, 2020, Altria had 12 billion shares of authorized common stock; issued, repurchased and outstanding shares of common stock were as follows: Shares Issued Shares Repurchased Shares Outstanding Balances, December 31, 2017 2,805,961,317 (904,702,125) 1,901,259,192 Stock award activity — 676,727 676,727 Repurchases of common stock — (27,878,324) (27,878,324) Balances, December 31, 2018 2,805,961,317 (931,903,722) 1,874,057,595 Stock award activity — 427,276 427,276 Repurchases of common stock — (16,503,317) (16,503,317) Balances, December 31, 2019 2,805,961,317 (947,979,763) 1,857,981,554 Stock award activity — 437,611 437,611 Balances, December 31, 2020 2,805,961,317 (947,542,152) 1,858,419,165 |
Share Repurchases | For the years ended December 31, 2019 and 2018, Altria’s total share repurchase activity was as follows: July 2019 Share Repurchase Program January 2018 Share Repurchase Program July 2015 Share Repurchase Program (1) Total (in millions, except per share data) 2019 2019 2018 2018 2019 2018 Total number of shares repurchased 10.1 6.4 27.6 0.3 16.5 27.9 Aggregate cost of shares repurchased $ 500 $ 345 $ 1,655 $ 18 $ 845 $ 1,673 Average price per share of shares repurchased $ 49.29 $ 54.36 $ 59.89 $ 71.68 $ 51.24 $ 60.00 (1) In July 2015, the Board of Directors authorized a $1.0 billion share repurchase program (expanded to $3.0 billion in October 2016 and to $4.0 billion in July 2017), which was completed in January 2018. |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Units Activity | RSU activity was as follows for the year ended December 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at December 31, 2019 1,909,642 $ 61.46 Granted 1,162,118 $ 42.59 Vested (542,331) $ 66.22 Forfeited (290,050) $ 51.91 Balance at December 31, 2020 2,239,379 $ 51.76 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Losses) Per Share | Basic and diluted earnings (losses) per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2020 2019 2018 Net earnings (losses) attributable to Altria $ 4,467 $ (1,293) $ 6,963 Less: Distributed and undistributed earnings attributable to share-based awards (8) (7) (8) Earnings (losses) for basic and diluted EPS $ 4,459 $ (1,300) $ 6,955 Weighted-average shares for basic EPS 1,858 1,869 1,887 Plus: contingently issuable PSUs 1 — 1 Weighted-average shares for diluted EPS 1,859 1,869 1,888 |
Other Comprehensive Earnings__2
Other Comprehensive Earnings/losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: (in millions) Benefit Plans ABI Currency Accumulated Balances, December 31, 2017 $ (1,839) $ (54) $ (4) $ (1,897) Adoption of ASU No. 2018-02 (1) (397) (11) — (408) Other comprehensive earnings (losses) before reclassifications (151) (323) (1) (475) Deferred income taxes 39 64 — 103 Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (112) (259) (1) (372) Amounts reclassified to net earnings (losses) 241 (64) — 177 Deferred income taxes (61) 14 — (47) Amounts reclassified to net earnings (losses), net of deferred income taxes 180 (50) — 130 Other comprehensive earnings (losses), net of deferred income taxes 68 (309) (2) (1) (242) Balances, December 31, 2018 (2,168) (374) (5) (2,547) Other comprehensive earnings (losses) before reclassifications (204) (367) 26 (545) Deferred income taxes 51 75 — 126 Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (153) (292) 26 (419) Amounts reclassified to net earnings (losses) 173 (34) — 139 Deferred income taxes (44) 7 — (37) Amounts reclassified to net earnings (losses), net of deferred income taxes 129 (27) — 102 Other comprehensive earnings (losses), net of deferred income taxes (24) (319) (2) 26 (317) Balances, December 31, 2019 (2,192) (693) 21 (2,864) Other comprehensive earnings (losses) before reclassifications (454) (1,613) (4) (2,071) Deferred income taxes 115 352 — 467 Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (339) (1,261) (4) (1,604) Amounts reclassified to net earnings (losses) 148 21 — 169 Deferred income taxes (37) (5) — (42) Amounts reclassified to net earnings (losses), net of deferred income taxes 111 16 — 127 Other comprehensive earnings (losses), net of deferred income taxes (228) (1,245) (2) (4) (1,477) Balances, December 31, 2020 $ (2,420) $ (1,938) $ 17 $ (4,341) (1) Reflects the reclassification of the stranded income tax effects of the Tax Reform Act. (2) Primarily reflects Altria’s share of ABI’s currency translation adjustments and the impact of Altria’s designated net investment hedges. For further discussion of designated net investment hedges, see Note 7. Financial Instruments . |
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 (losses): For the Years Ended December 31, (in millions) 2020 2019 2018 Benefit Plans: (1) Net loss $ 173 $ 200 $ 276 Prior service cost/credit (25) (27) (35) 148 173 241 ABI (2) 21 (34) (64) Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) $ 169 $ 139 $ 177 ( 1) Amounts are included in net defined benefit plan costs. For further details, see Note 16. Benefit Plans. (2) Amounts are primarily included in income (losses) from equity investments. For further information, see Note 6. Investments in Equity Securities. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings Before Income Taxes and Provision for Income Taxes | Earnings (losses) before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Earnings (losses) before income taxes: United States $ 6,842 $ 266 $ 9,441 Outside United States 48 500 (100) Total $ 6,890 $ 766 $ 9,341 Provision (benefit) for income taxes: Current: Federal $ 2,025 $ 1,686 $ 1,911 State and local 553 470 519 Outside United States 22 3 1 2,600 2,159 2,431 Deferred: Federal (130) (78) (18) State and local (34) (19) (42) Outside United States — 2 3 (164) (95) (57) Total provision for income taxes $ 2,436 $ 2,064 $ 2,374 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 64 $ 85 $ 66 Additions for tax positions of prior years 12 32 22 Reductions for tax positions of prior years (2) (16) (1) Tax settlements — (37) (2) Balance at end of year $ 74 $ 64 $ 85 |
Schedule of Unrecognized Tax Benefits and Consolidated Liability for Tax Contingencies | Unrecognized tax benefits and Altria’s consolidated liability for tax contingencies at December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Unrecognized tax benefits $ 74 $ 64 Accrued interest and penalties 15 11 Tax credits and other indirect benefits (1) (1) Liability for tax contingencies $ 88 $ 74 |
Reconciliation of Effective Tax Rate and U.S. Federal Statutory Rate | A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to earnings (losses) before income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 (dollars in millions) $ % $ % $ % U.S. federal statutory rate $ 1,447 21.0 % $ 161 21.0 % $ 1,962 21.0 % Increase (decrease) resulting from: State and local income taxes, net of federal tax benefit 410 6.0 356 46.5 377 4.0 Tax basis in foreign investments 23 0.3 84 11.0 140 1.5 Deemed repatriation tax — — — — 14 0.1 Uncertain tax positions 9 0.1 (40) (5.2) 8 0.1 Investment in ABI (16) (0.2) (210) (27.4) (104) (1.1) Investment in JUUL 537 7.8 1,808 236.0 15 0.2 Investment in Cronos 20 0.3 (66) (8.6) — — Other (1) 6 0.1 (29) (3.8) (38) (0.4) Effective tax rate $ 2,436 35.4 % $ 2,064 269.5 % $ 2,374 25.4 % (1) Other in 2019 is primarily deferred profit sharing dividends tax benefit of $21 million and immaterial miscellaneous items. |
Schedule of Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at December 31, 2020 and 2019: (in millions) 2020 2019 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 524 $ 491 Settlement charges 888 833 Accrued pension costs 148 131 Investment in JUUL 2,642 2,047 Investment in Cronos 128 197 Net operating losses and tax credit carryforwards 81 92 Total deferred income tax assets 4,411 3,791 Deferred income tax liabilities: Property, plant and equipment (273) (255) Intangible assets (2,806) (2,758) Investment in ABI (2,819) (3,115) Finance assets, net (117) (204) Other (12) (158) Total deferred income tax liabilities (6,027) (6,490) Valuation allowances (2,817) (2,324) Net deferred income tax liabilities $ (4,433) $ (5,023) |
Summary of Valuation Allowance | A reconciliation of the beginning and ending valuation allowances for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 2,324 $ 71 $ — Additions to valuation allowance related to Altria’s initial Investment in Cronos — 352 — Additions to valuation allowance charged to income tax expense 692 2,063 71 Reductions to valuation allowance credited to income tax benefit (200) (159) — Foreign currency translation 1 (3) — Balance at end of year $ 2,817 $ 2,324 $ 71 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Data Schedule | Segment data were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Net revenues: Smokeable products $ 23,089 $ 21,996 $ 22,297 Oral tobacco products 2,533 2,367 2,262 Wine 614 689 691 All other (83) 58 114 Net revenues $ 26,153 $ 25,110 $ 25,364 Earnings before income taxes: Operating companies income (loss): Smokeable products $ 9,985 $ 9,009 $ 8,408 Oral tobacco products 1,718 1,580 1,431 Wine (360) (3) 50 All other (172) (16) (421) Amortization of intangibles (72) (44) (38) General corporate expenses (227) (199) (315) Corporate asset impairment and exit costs 1 (1) — Operating income 10,873 10,326 9,115 Interest and other debt expense, net (1,209) (1,280) (665) Net periodic benefit income, excluding service cost 77 37 34 Income (losses) from equity investments (111) 1,725 890 Impairment of JUUL equity securities (2,600) (8,600) — Loss on Cronos-related financial instruments (140) (1,442) — Loss on ABI/SABMiller business combination — — (33) Earnings before income taxes $ 6,890 $ 766 $ 9,341 |
Schedule of Depreciation Expense and Capital Expenditures of Segments | Details of Altria’s depreciation expense and capital expenditures were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Depreciation expense: Smokeable products $ 81 $ 88 $ 90 Oral tobacco products 32 27 28 Wine 40 41 40 General corporate and other 32 26 31 Total depreciation expense $ 185 $ 182 $ 189 Capital expenditures: Smokeable products $ 49 $ 61 $ 81 Oral tobacco products 67 44 73 Wine 31 63 40 General corporate and other 84 78 44 Total capital expenditures $ 231 $ 246 $ 238 |
Schedule of Pre-tax Tobacco and Health Litigation Charges | For the years ended December 31, 2020, 2019 and 2018, pre-tax charges related to certain tobacco and health litigation items were recorded in Altria’s consolidated statements of earnings (losses) as follows: (in millions) 2020 2019 2018 Smokeable products segment $ 79 $ 72 $ 103 Oral tobacco products segment — — 10 Interest and other debt expense, net 4 5 18 Total $ 83 $ 77 $ 131 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The benefit obligations, plan assets and funded status of Altria’s pension and postretirement plans at December 31, 2020 and 2019 were as follows: Pension Postretirement (in millions) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 8,659 $ 7,726 $ 2,091 $ 2,040 Service cost 74 70 16 16 Interest cost 251 306 59 76 Benefits paid (477) (493) (107) (126) Actuarial losses 970 1,025 169 78 Settlement and curtailment — 25 — 7 Other (12) — 1 — Benefit obligation at end of year 9,465 8,659 2,229 2,091 Change in plan assets: Fair value of plan assets at beginning of year 8,167 7,138 213 211 Actual return on plan assets 1,188 1,466 21 45 Employer contributions 33 56 — — Benefits paid (477) (493) (33) (43) Fair value of plan assets at end of year 8,911 8,167 201 213 Funded status at December 31 $ (554) $ (492) $ (2,028) $ (1,878) Amounts recognized on Altria’s consolidated balance sheets were as follows: Other accrued liabilities $ (23) $ (26) $ (77) $ (81) Accrued pension costs (551) (473) — — Other assets 20 7 — — Accrued postretirement health care costs — — (1,951) (1,797) $ (554) $ (492) $ (2,028) $ (1,878) |
Net Pension Liability Recognized in Consolidated Balance Sheets | The benefit obligations, plan assets and funded status of Altria’s pension and postretirement plans at December 31, 2020 and 2019 were as follows: Pension Postretirement (in millions) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 8,659 $ 7,726 $ 2,091 $ 2,040 Service cost 74 70 16 16 Interest cost 251 306 59 76 Benefits paid (477) (493) (107) (126) Actuarial losses 970 1,025 169 78 Settlement and curtailment — 25 — 7 Other (12) — 1 — Benefit obligation at end of year 9,465 8,659 2,229 2,091 Change in plan assets: Fair value of plan assets at beginning of year 8,167 7,138 213 211 Actual return on plan assets 1,188 1,466 21 45 Employer contributions 33 56 — — Benefits paid (477) (493) (33) (43) Fair value of plan assets at end of year 8,911 8,167 201 213 Funded status at December 31 $ (554) $ (492) $ (2,028) $ (1,878) Amounts recognized on Altria’s consolidated balance sheets were as follows: Other accrued liabilities $ (23) $ (26) $ (77) $ (81) Accrued pension costs (551) (473) — — Other assets 20 7 — — Accrued postretirement health care costs — — (1,951) (1,797) $ (554) $ (492) $ (2,028) $ (1,878) |
Assumptions used to Determine Benefit Obligations | The following assumptions were used to determine Altria’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2020 2019 2020 2019 Discount rate 2.7 % 3.4 % 2.6 % 3.4 % Rate of compensation increase 4.0 4.0 — — Health care cost trend rate assumed for next year — — 6.5 6.5 Ultimate trend rate — — 5.0 5.0 Year that the rate reaches the ultimate trend rate — — 2027 2025 |
Schedule of Net Benefit Costs | Net periodic benefit cost (income) consisted of the following for the years ended December 31, 2020, 2019 and 2018: Pension Postretirement (in millions) 2020 2019 2018 2020 2019 2018 Service cost $ 74 $ 70 $ 81 $ 16 $ 16 $ 18 Interest cost 251 306 276 59 76 70 Expected return on plan assets (502) (576) (585) (14) (15) (19) Amortization: Net loss 134 159 225 10 5 21 Prior service cost (credit) 5 6 4 (30) (30) (42) Settlement and curtailment 10 27 16 — 5 — Net periodic benefit cost (income) $ (28) $ (8) $ 17 $ 41 $ 57 $ 48 |
Schedule Of Termination Settlement And Curtailment Cost | The amounts included in settlement and curtailment in the table above were comprised of the following changes: Pension Postretirement (in millions) 2020 2019 2018 2019 Benefit obligation $ — $ 6 $ — $ 10 Other comprehensive earnings/losses: Net loss 10 20 13 — Prior service cost (credit) — 1 3 (5) $ 10 $ 27 $ 16 $ 5 |
Schedule Of Assumptions To Determine Net Periodic Benefit Cost | The following assumptions were used to determine Altria’s net periodic benefit cost for the years ended December 31: Pension Postretirement 2020 2019 2018 2020 2019 2018 Discount rates: Service cost 3.7 % 4.6 % 3.8 % 3.6 % 4.5 % 3.8 % Interest cost 3.0 4.0 3.3 3.0 4.0 3.3 Expected rate of return on plan assets 6.6 7.8 7.8 7.7 7.8 7.8 Rate of compensation increase 4.0 4.0 4.0 — — — Health care cost trend rate — — — 6.5 6.5 7.0 |
Schedule of Fair Value of Plan Assets by Asset Category | The actual composition of Altria’s plan assets at December 31, 2020 was broadly characterized with the following allocation: Pension Postretirement Equity securities 31 % 58 % Corporate bonds 53 % 31 % U.S. Treasury and foreign government securities 16 % 11 % The fair values of the pension plan assets by asset category at December 31, 2020 and 2019 were as follows: 2020 2019 (in millions) Level 1 Level 2 Total Level 1 Level 2 Total U.S. and foreign government securities or their agencies: U.S. government and agencies $ — $ 950 $ 950 $ — $ 811 $ 811 U.S. municipal bonds — 64 64 — 57 57 Foreign government and agencies — 90 90 — 98 98 Corporate debt instruments: Above investment grade — 3,760 3,760 — 3,523 3,523 Below investment grade and no rating — 868 868 — 521 521 Common stock: International equities 316 — 316 296 — 296 U.S. equities 970 — 970 1,263 — 1,263 Other, net 21 356 377 (4) 479 475 $ 1,307 $ 6,088 $ 7,395 $ 1,555 $ 5,489 $ 7,044 Investments measured at NAV as a practical expedient for fair value: Collective investment funds U.S. large cap $ 924 $ 825 U.S. small cap 455 386 International developed markets 114 106 Total investments measured at NAV $ 1,493 $ 1,317 Other 23 (194) Fair value of plan assets, net $ 8,911 $ 8,167 Level 3 holdings and transactions were immaterial to total plan assets at December 31, 2020 and 2019. The fair value of the postretirement plan assets at December 31, 2020 and 2019 were as follows: 2020 2019 (in millions) Level 1 Level 2 Total Level 1 Level 2 Total U.S. and foreign government securities or their agencies: U.S. government and agencies $ — $ 6 $ 6 $ — $ 11 $ 11 Foreign government and agencies — 4 4 — 5 5 Corporate debt instruments: Above investment grade — 55 55 — 63 63 Below investment grade and no rating — 11 11 — 9 9 Other, net — 7 7 — 7 7 $ — $ 83 $ 83 $ — $ 95 $ 95 Investments measured at NAV as a practical expedient for fair value: Collective investment funds: U.S. large cap $ 97 $ 97 International developed markets 25 24 Total investments measured at NAV $ 122 $ 121 Other (4) (3) Fair value of plan assets, net $ 201 $ 213 |
Estimated Future Benefit Payments | Estimated future benefit payments at December 31, 2020 were as follows: (in millions) Pension Postretirement 2021 $ 495 $ 120 2022 483 118 2023 483 115 2024 483 113 2025 485 112 2026-2030 2,437 563 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts recorded in accumulated other comprehensive losses at December 31, 2020 consisted of the following: (in millions) Pension Post- Post- Total Net loss $ (2,689) $ (541) $ (44) $ (3,274) Prior service (cost) credit (27) 41 (5) 9 Deferred income taxes 702 132 11 845 Amounts recorded in accumulated other comprehensive losses $ (2,014) $ (368) $ (38) $ (2,420) The amounts recorded in accumulated other comprehensive losses at December 31, 2019 consisted of the following: (in millions) Pension Post- Post- Total Net loss $ (2,565) $ (389) $ (45) $ (2,999) Prior service (cost) credit (27) 72 (5) 40 Deferred income taxes 670 86 11 767 Amounts recorded in accumulated other comprehensive losses $ (1,922) $ (231) $ (39) $ (2,192) |
Movements in Other Comprehensive Earnings/Losses | The movements in other comprehensive earnings/losses during the year ended December 31, 2020 were as follows: (in millions) Pension Post- Post- Total Amounts reclassified to net earnings (losses) as components of net periodic Amortization: Net loss $ 134 $ 10 $ 19 $ 163 Prior service cost/credit 5 (30) — (25) Other expense (income): Net loss 10 — — 10 Prior service cost/credit — — — — Deferred income taxes (37) 5 (5) (37) $ 112 $ (15) $ 14 $ 111 Other movements during the year: Net loss $ (268) $ (162) $ (18) $ (448) Prior service cost/credit (5) (1) — (6) Deferred income taxes 69 41 5 115 $ (204) $ (122) $ (13) $ (339) Total movements in other comprehensive earnings/losses $ (92) $ (137) $ 1 $ (228) The movements in other comprehensive earnings/losses during the year ended December 31, 2019 were as follows: (in millions) Pension Post-retirement Post-employment Total Amounts reclassified to net earnings (losses) as components of net periodic benefit cost: Amortization: Net loss $ 159 $ 5 $ 20 $ 184 Prior service cost/credit 6 (30) 1 (23) Other expense (income): Net loss 20 — (4) 16 Prior service cost/credit 1 (5) — (4) Deferred income taxes (47) 7 (4) (44) $ 139 $ (23) $ 13 $ 129 Other movements during the year: Net loss $ (153) $ (67) $ 17 $ (203) Prior service cost/credit — (1) — (1) Deferred income taxes 38 18 (5) 51 $ (115) $ (50) $ 12 $ (153) Total movements in other comprehensive earnings/losses $ 24 $ (73) $ 25 $ (24) The movements in other comprehensive earnings/losses during the year ended December 31, 2018 were as follows: (in millions) Pension Post- Post- Total Amounts reclassified to net earnings (losses) as components of net periodic benefit cost: Amortization: Net loss $ 225 $ 21 $ 17 $ 263 Prior service cost/credit 4 (42) — (38) Other expense (income): Net loss 13 — — 13 Prior service cost/credit 3 — — 3 Deferred income taxes (61) 4 (4) (61) $ 184 $ (17) $ 13 $ 180 Other movements during the year: Adoption of ASU 2018-02 (1) $ (330) $ (55) $ (12) $ (397) Net loss (336) 264 (2) (74) Prior service cost/credit (26) (45) (6) (77) Deferred income taxes 91 (54) 2 39 $ (601) $ 110 $ (18) $ (509) Total movements in other comprehensive earnings/losses $ (417) $ 93 $ (5) $ (329) (1) Reflects the reclassification of the stranded income tax effects of the Tax Reform Act. |
Additional Information (Tables)
Additional Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | For the Years Ended December 31, (in millions) 2020 2019 2018 Research and development expense $ 131 $ 168 $ 252 Advertising expense $ 26 $ 33 $ 37 Interest and other debt expense, net: Interest expense $ 1,223 $ 1,322 $ 697 Interest income (14) (42) (32) $ 1,209 $ 1,280 $ 665 |
Schedule of Valuation and Qualifying Accounts | The activity in the allowance for discounts and allowance for returned goods for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Discounts Returned Goods Discounts Returned Goods Discounts Returned Goods Balance at beginning of year $ — $ 32 $ — $ 32 $ — $ 40 Charged to costs and expenses 633 98 604 127 620 97 Deductions (1) (633) (90) (604) (127) (620) (105) Balance at end of year $ — $ 40 $ — $ 32 $ — $ 32 (1) Represents the recording of discounts and returns for which allowances were created . The activity in the allowance for losses on finance assets for the years ended December 31, 2020, 2019 and 2018 was as follows: (in millions) 2020 2019 2018 Balance at beginning of year $ 19 $ 19 $ 23 Decrease to allowance — — (4) Balance at end of year $ 19 $ 19 $ 19 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contingencies | The table below lists the number of certain tobacco-related cases pending in the U.S. against PM USA and/or Altria as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Individual Smoking and Health Cases (1) 148 104 100 Health Care Cost Recovery Actions (2) 1 1 1 E-vapor Cases (3) 1,563 101 — Other Tobacco-Related Cases (4) 3 4 4 (1) Includes 16 cases filed in New Mexico, 30 cases filed in Massachusetts and 60 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 1,471 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) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. (3) Includes 27 class action lawsuits, three of which were filed in Canada, 1,468 individual lawsuits and 68 “third party” lawsuits relating to JUUL e-vapor products, which include school districts, state and local government, tribal and healthcare organization lawsuits. JUUL is an additional named defendant in each of these lawsuits. (4) Includes one inactive smoking and health case alleging personal injury and purporting to be brought on behalf of a class of individual plaintiffs and two inactive class action lawsuits alleging that use 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 RICO. 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: (in millions) 2020 2019 2018 Accrued liability for tobacco and health litigation items at beginning of period (1) $ 14 $ 112 $ 106 Pre-tax charges for: Tobacco and health litigation 79 (1)(2) 72 (1)(2) 113 Related interest costs 4 5 18 Payments (1) (88) (3) (175) (3) (125) Accrued liability for tobacco and health litigation items at end of period (1) $ 9 $ 14 $ 112 (1) Includes amounts related to the costs of implementing the corrective communications remedy related to the Federal Government’s Lawsuit discussed below. (2) Includes certain costs related to pre-trial resolution of tobacco and health cases. (3) Includes amounts related to (i) payments for pre-trial resolution of tobacco and health cases and (ii) costs for pre-trial resolution of other tobacco and health cases accrued in the prior year and paid in the identified year. 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 was denied by the district court. Upon appeal by PM USA, the Eleventh Circuit Court of Appeals affirmed the punitive damages award. $6 million accrual in the fourth quarter of 2018 Santoro March 2017 PM USA, R.J. Reynolds and Liggett Group (2) Broward $2 million (<$1 million PM USA) <$1 million The Fourth District Court of Appeal affirmed the compensatory damages award and reinstated the punitive damages award. Defendants’ motion for rehearing was denied. Defendants’ appeal to the Florida Supreme Court of the punitive damages award was also denied. <$1 million accrual for compensatory damages award in the second quarter of 2020 (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). (2) References to “R.J. Reynolds,” “Lorillard” and “Liggett Group” are to R.J. Reynolds Tobacco Company, Lorillard Tobacco Company and Liggett Group, LLC, respectively. 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 Duignan February 2020 (2) PM USA and Pinellas $3 million $12 million Appeal by defendants to Second District Court of Appeal pending. Cuddihee January 2020 PM USA Duval $3 million $0 Appeal by plaintiff and defendant to First District Court of Appeal pending. Rintoul ( Caprio ) November 2019 (2) PM USA and R.J. Reynolds Broward $9 million $74 million Appeal by plaintiff and defendants to Fourth District Court of Appeal pending. Gloger November 2019 (2) PM USA and R.J. Reynolds Miami-Dade $15 million $11 million Appeal by defendants to Third District Court of Appeal pending. McCall March 2019 PM USA Broward <$1 million (<$1 million PM USA) $0 New trial ordered on punitive damages. Neff March 2019 PM USA and R.J. Reynolds Broward $4 million $2 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Mahfuz February 2019 PM USA and R.J. Reynolds Broward $12 million $10 million Appeals by plaintiff and defendants to Fourth District Court of Appeal pending. Holliman February 2019 PM USA Miami-Dade $3 million $0 Defendant’s appeal to Third District Court of Appeal pending. Chadwell September 2018 PM USA Miami-Dade $2 million $0 Third District Court of Appeal affirmed the compensatory damages award. PM USA petitioned Florida Supreme Court for review. Case stayed pending Florida Supreme Court decision in Prentice . (3) Kaplan July 2018 PM USA and R.J. Reynolds Broward $2 million $2 million Fourth District Court of Appeal affirmed the verdict. Defendants’ motion for rehearing pending. (1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. (2) Plaintiff’s verdict following a retrial of an initial verdict in favor of plaintiff. (3) PM USA is not a defendant in this case. 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 R. Douglas November 2017 PM USA Duval <$1 million $0 Awaiting entry of final judgment by the trial court. Sommers April 2017 PM USA Miami-Dade $1 million $0 Third District Court of Appeal affirmed compensatory damages award and granted new trial on punitive damages. Florida Supreme Court denied PM USA’s petition for review of the Third District Court of Appeal's decision. PM USA paid approximately $1 million for the compensatory damages award and awaits the new trial on punitive damages. (2) Cooper (Blackwood) September 2015 PM USA and R.J. Reynolds Broward $5 million (<$1 million PM USA) $0 Fourth District Court of Appeal affirmed judgment and granted a new trial on punitive damages. D. Brown January 2015 PM USA Federal Court - Middle District of Florida $8 million $9 million Appeal by defendant to U.S. Court of Appeals for the Eleventh Circuit stayed pending Florida Supreme Court decision in Prentice . (3) Harris July 2014 PM USA, Federal Court - Middle District of Florida $2 million (<$1 million PM USA) $0 U.S. Court of Appeals for the Eleventh Circuit reversed the judgment against PM USA and remanded to the district court to enter judgment for the defendants. (1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. (2) Plaintiff was granted an award of approximately $3 million in fees, costs and interest that PM USA has appealed. (3) PM USA is not a defendant in this case. Engle Cases Concluded Within Past 12 Months (1) (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount Payment Date Dean (Kerrivan) (2) October 2014 PM USA and R.J. Reynolds Federal Court - Middle District of Florida Third quarter of 2020 $26 million August 2020 Landi (3) June 2018 PM USA and R.J. Reynolds Broward Second quarter of 2020 $10 million July 2020 Theis (4) May 2018 PM USA and Sarasota First quarter of 2020 $17 million February 2020 (1) In four cases in which PM USA paid the judgments more than a year ago, Naugle, Gore , M. Brown and Jordan , plaintiffs were awarded approximately $8 million, $2 million, $9 million and $4 million in fees and costs, respectively. PM USA has appealed in all of these cases. (2) In August 2020, the U.S. Court of Appeals for the Eleventh Circuit denied the defendants’ petition for rehearing. As a result, in the third quarter of 2020, PM USA recorded a pre-tax provision of approximately $26 million, reflecting its portion of the judgment plus interest, and paid this amount in August 2020. (3) In June 2020, the Fourth District Court of Appeal affirmed the compensatory damages award. As a result, in the second quarter of 2020, PM USA recorded a pre-tax provision of approximately $10 million for the judgment plus interest and paid this amount in July 2020. (4) In February 2020, the Florida Second District Court of Appeal denied PM USA’s petition for review. As a result, in the first quarter of 2020, PM USA recorded a pre-tax provision of approximately $17 million for the judgment plus interest and paid this amount. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | 2020 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,359 $ 6,367 $ 7,123 $ 6,304 Gross profit $ 2,873 $ 3,287 $ 3,717 $ 3,146 Net earnings (losses) $ 1,550 $ 1,938 $ (956) $ 1,922 Net earnings (losses) attributable to Altria $ 1,552 $ 1,943 $ (952) $ 1,924 Per share data: Basic and diluted earnings (losses) per share attributable to Altria $ 0.83 $ 1.04 $ (0.51) $ 1.03 2019 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 5,628 $ 6,619 $ 6,856 $ 6,007 Gross profit $ 2,811 $ 3,319 $ 3,497 $ 3,084 Net earnings (losses) $ 1,121 $ 1,997 $ (2,602) $ (1,814) Net earnings (losses) attributable to Altria $ 1,120 $ 1,996 $ (2,600) $ (1,809) Per share data: Basic earnings (losses) per share attributable to Altria $ 0.60 $ 1.07 $ (1.39) $ (0.97) Diluted earnings (losses) per share attributable to Altria $ 0.60 $ 1.07 $ (1.39) $ (1.00) |
Schedule Of Pre-Tax Charges (Gains) Included In Net Earnings | During 2020 and 2019, the following pre-tax (gains) or charges were included in net earnings attributable to Altria: 2020 Quarters (in millions) 1st 2nd 3rd 4th Impairment of JUUL equity securities $ — $ — $ 2,600 $ — JUUL changes in fair value — — — (100) Tobacco and health litigation items, including accrued interest 24 18 34 7 Asset impairment, exit, implementation and acquisition-related costs 395 8 12 16 ABI-related special items 56 120 513 74 Cronos-related special items 89 (88) 143 (93) PMCC residual value adjustments — 34 — 91 COVID-19 special items — 50 — — $ 564 $ 142 $ 3,302 $ (5) 2019 Quarters (in millions) 1st 2nd 3rd 4th Impairment of JUUL equity securities $ — $ — $ 4,500 $ 4,100 Tobacco and health litigation items, including accrued interest 17 28 3 29 Asset impairment, exit, implementation and acquisition-related costs 159 45 11 116 ABI-related special items (1) 163 (129) (23) (394) Cronos-related special items 425 119 549 (165) $ 764 $ 63 $ 5,040 $ 3,686 (1) Prior period amounts have been recast to conform with current period presentation for certain ABI mark-to-market adjustments. |
Background and Basis of Prese_2
Background and Basis of Presentation (Background Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
ABI [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage (approximately) | 10.10% | 10.00% | |||
JUUL [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity securities without readily determinable fair value, ownership percentage | 35.00% | 35.00% | 35.00% | ||
Cronos [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage (approximately) | 45.00% | 43.50% | 45.00% | ||
Helix Innovations LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 80.00% | 80.00% | |||
Business combination, consideration transferred | $ 353 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Inventories determined using LIFO method | 59.00% | 56.00% |
Current cost of inventories over LIFO amounts | $ 0.6 | $ 0.6 |
Revenue, contract duration | 1 year | |
Revenue, performance obligation, description of timing | three days | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Definite-lived intangible assets useful life maximum, years | 25 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of property, plant and equipment | 25 years | |
Maximum [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life of property, plant and equipment | 50 years | |
USSTC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revenue, performance obligation, description of timing | one business day | |
Ste. Michelle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revenue, performance obligation, description of timing | 45 days |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Allowance for cash discounts | $ 0 | $ 0 |
Contract with customer, liability | $ 301 | 362 |
Revenue, performance obligation, description of timing | three days | |
Receivables | $ 137 | $ 152 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net (Schedule of Goodwill and Intangible Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | |||
Goodwill | $ 5,177 | $ 5,177 | $ 5,196 |
Other Intangible Assets, net | 12,615 | 12,687 | $ 12,279 |
Smokeable Products [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 99 | 99 | |
Other Intangible Assets, net | 3,044 | 3,071 | |
Oral Tobacco Products [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 5,078 | 5,078 | |
Other Intangible Assets, net | 9,164 | 9,196 | |
Wine [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 0 | |
Other Intangible Assets, net | 237 | 238 | |
Other [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 0 | |
Other Intangible Assets, net | $ 170 | $ 182 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net (Other Intangible Assets Disclosure) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 11,676 | $ 11,676 |
Definite-lived intangible assets | 1,275 | 1,275 |
Total other intangible assets | 12,951 | 12,951 |
Definite-lived intangible assets, accumulated amortization | $ 336 | $ 264 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated goodwill impairment charges | $ 185 | $ 185 | $ 111 |
Amortization of intangibles | 72 | 44 | 38 |
Estimated future amortization, year 1 | 70 | ||
Estimated future amortization, year 2 | 70 | ||
Estimated future amortization, year 3 | 70 | ||
Estimated future amortization, year 4 | 70 | ||
Estimated future amortization, year 5 | 70 | ||
Goodwill impairment | 0 | 74 | |
Impairment of intangible assets (excluding goodwill) | 44 | ||
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 54 | ||
UST Litigation [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived trademarks | 9,000 | ||
Middleton [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived trademarks | $ 2,600 | ||
Wine [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 74 | ||
Weighted Average [Member] | Definite-Lived Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets amortization period, weighted average, in years | 20 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, net (Schedule of Goodwill and Net Carrying Amount of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | ||
Balance at beginning of period | $ 5,177 | $ 5,196 |
Acquisitions | 0 | 55 |
Asset impairment | 0 | (74) |
Balance of end of period | 5,177 | 5,177 |
Other Intangible Assets, net | ||
Balance beginning of period | 12,687 | 12,279 |
Acquisitions | 0 | 451 |
Asset impairment | 0 | 0 |
Amortization | (72) | (43) |
Balance end of period | $ 12,615 | $ 12,687 |
Asset Impairment, Exit and Im_3
Asset Impairment, Exit and Implementation Costs (Pre-tax Asset Impairment, Exit and Implementation Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment and Exit Costs | $ (4) | $ 159 | $ 383 |
Implementation Costs | 411 | 28 | 67 |
Total | 407 | 187 | 450 |
Plus amounts included in net periodic benefit (income) cost, excluding service cost, asset impairment and exit costs | 0 | 29 | 3 |
Plus amounts included in net periodic benefit (income) cost, excluding service cost, implementation costs | 0 | 0 | 0 |
Plus amounts included in net periodic benefit (income) cost, excluding service cost, total | 0 | 29 | 3 |
Total, Asset Impairment and Exit Costs | (4) | 188 | 386 |
Total, Implementation Costs | 411 | 28 | 67 |
Total | 407 | 216 | 453 |
Operating Segments [Member] | Smokeable Products [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment and Exit Costs | 2 | 59 | 79 |
Implementation Costs | 0 | 33 | 1 |
Total | 2 | 92 | 80 |
Operating Segments [Member] | Oral Tobacco Products [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment and Exit Costs | (5) | 9 | 20 |
Implementation Costs | 0 | 5 | 3 |
Total | (5) | 14 | 23 |
Operating Segments [Member] | Wine [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment and Exit Costs | 0 | 76 | 54 |
Implementation Costs | 411 | 0 | 0 |
Total | 411 | 76 | 54 |
Operating Segments [Member] | All Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment and Exit Costs | 0 | 14 | 227 |
Implementation Costs | 0 | (10) | 63 |
Total | 0 | 4 | 290 |
General Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment and Exit Costs | (1) | 1 | 3 |
Implementation Costs | 0 | 0 | 0 |
Total | (1) | 1 | 3 |
Total, Asset Impairment and Exit Costs | $ (1) | 1 | $ 0 |
Cost of Sales [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Implementation Costs | 2 | ||
Marketing Administration And Research Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Implementation Costs | $ 26 |
Asset Impairment, Exit and Im_4
Asset Impairment, Exit and Implementation Costs (Restructuring Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 67 | $ 155 |
Charges | (4) | 59 |
Cash spent | (47) | (147) |
Balance at end of period | $ 16 | $ 67 |
Asset Impairment, Exit and Im_5
Asset Impairment, Exit and Implementation Costs (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 25 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | $ 407,000,000 | $ 216,000,000 | $ 453,000,000 | ||
Payments for restructuring | 47,000,000 | 147,000,000 | |||
Wine Business Strategic Reset [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | $ 411,000,000 | ||||
Wine Business Strategic Reset [Member] | Inventory Write-Off [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | $ 292,000,000 | ||||
Wine Business Strategic Reset [Member] | Purchase Commitment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | $ 100,000,000 | ||||
Long-term purchase commitment, period | 4 years | ||||
Wine Business Strategic Reset [Member] | Inventory Disposal Costs and Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | $ 19,000,000 | ||||
Refocus of Innovative Product Efforts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | 9,000,000 | 272,000,000 | |||
Refocus of Innovative Product Efforts [Member] | Asset Impairment and Exit Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | 209,000,000 | ||||
Refocus of Innovative Product Efforts [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | 63,000,000 | ||||
Cost Reduction Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment, exit costs and implementation costs | 133,000,000 | $ 121,000,000 | |||
Restructuring and related cost, cost incurred to date | 250,000,000 | $ 250,000,000 | |||
Restructuring reserve, accrual adjustment | (4,000,000) | ||||
Payments for restructuring | 44,000,000 | $ 136,000,000 | 180,000,000 | ||
Cost Reduction Program [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, cost incurred to date | 52,000,000 | 52,000,000 | |||
Cost Reduction Program [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, cost incurred to date | $ 198,000,000 | $ 198,000,000 |
Investments in Equity Securit_3
Investments in Equity Securities (Summary of Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments [Line Items] | ||
Total | $ 19,529 | $ 23,581 |
ABI [Member] | ||
Investments [Line Items] | ||
Equity method investments | 16,651 | 18,071 |
JUUL [Member] | ||
Investments [Line Items] | ||
JUUL | 1,705 | 4,205 |
Cronos [Member] | ||
Investments [Line Items] | ||
Equity method investments | 1,173 | 1,305 |
Common Stock [Member] | Cronos [Member] | ||
Investments [Line Items] | ||
Equity method investments | 1,010 | 1,002 |
Equity Contract, Warrant [Member] | Cronos [Member] | ||
Investments [Line Items] | ||
Fair value of assets | 139 | 234 |
Equity Contract, Preemptive Rights [Member] | Cronos [Member] | ||
Investments [Line Items] | ||
Fair value of assets | 24 | 69 |
Net Investment Hedging [Member] | ||
Investments [Line Items] | ||
Fair value of assets | 163 | 349 |
Not Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Investments In Equity Securities [Member] | Equity Contract, Warrant [Member] | ||
Investments [Line Items] | ||
Fair value of assets | 139 | 234 |
Not Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Investments In Equity Securities [Member] | Equity Contract, Preemptive Rights [Member] | ||
Investments [Line Items] | ||
Fair value of assets | $ 24 | $ 69 |
Investments in Equity Securit_4
Investments in Equity Securities (Earnings from Equity Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Line Items] | |||||||
Income (losses) from investments under equity method of accounting | $ (211) | $ 1,725 | $ 890 | ||||
Income (losses) from equity investments | (111) | 1,725 | 890 | ||||
ABI [Member] | |||||||
Investments [Line Items] | |||||||
Income (losses) from investments under equity method of accounting | (223) | 1,229 | 890 | ||||
Cronos [Member] | |||||||
Investments [Line Items] | |||||||
Income (losses) from investments under equity method of accounting | 12 | 496 | 0 | ||||
JUUL [Member] | |||||||
Investments [Line Items] | |||||||
Income (losses) from investments under fair value option | $ 100 | $ 0 | $ 0 | $ 0 | $ 100 | $ 0 | $ 0 |
Investments in Equity Securit_5
Investments in Equity Securities (Investment in ABI Narrative) (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Line Items] | |||
Equity method investment, difference between carrying amount and fair value, percentage | 8.00% | 20.00% | |
ABI [Member] | |||
Investments [Line Items] | |||
Equity method investment, ownership percentage (approximately) | 10.00% | 10.00% | 10.10% |
Equity method investment, number of shares owned, restricted (in shares) | 185 | 185 | |
Equity method investment, number of shares owned, common (in shares) | 12 | 12 | |
Restricted shares, lock-up period | 5 years | ||
Difference between carrying amount and underlying equity | $ 11,300,000,000 | $ 11,300,000,000 | |
Equity method investments | 16,651,000,000 | $ 16,651,000,000 | $ 18,071,000,000 |
Equity method investment, difference between carrying amount and fair value, percentage | 17.00% | 11.00% | |
Proceeds from noncontrolling interests | 3,000,000,000 | ||
Equity method investment, impairment | $ 0 | $ 0 | |
Level 1 [Member] | ABI [Member] | |||
Investments [Line Items] | |||
Fair value of investment | $ 13,800,000,000 | $ 13,800,000,000 | $ 16,100,000,000 |
Investments in Equity Securit_6
Investments in Equity Securities (Summary of Financial Data in ABI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net revenues | $ 6,304 | $ 7,123 | $ 6,367 | $ 6,359 | $ 6,007 | $ 6,856 | $ 6,619 | $ 5,628 | $ 26,153 | $ 25,110 | $ 25,364 |
Gross profit | 3,146 | 3,717 | 3,287 | 2,873 | 3,084 | 3,497 | 3,319 | 2,811 | 13,023 | 12,711 | 12,254 |
Earnings from continuing operations | 6,890 | 766 | 9,341 | ||||||||
Net earnings | 1,922 | (956) | $ 1,938 | $ 1,550 | (1,814) | (2,602) | $ 1,997 | $ 1,121 | 4,454 | (1,298) | 6,967 |
Net earnings attributable to ABI | (13) | (5) | 4 | ||||||||
Total current assets | 7,117 | 4,824 | 7,117 | 4,824 | |||||||
Current liabilities | 9,063 | 8,174 | 9,063 | 8,174 | |||||||
Noncontrolling interests | $ 40 | $ 38 | 40 | 38 | |||||||
ABI [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net revenues | 48,294 | 54,187 | 55,500 | ||||||||
Gross profit | 28,438 | 33,735 | 34,986 | ||||||||
Earnings from continuing operations | 4,265 | 10,530 | 9,020 | ||||||||
Net earnings | 4,266 | 10,530 | 9,020 | ||||||||
Net earnings attributable to ABI | $ 3,323 | $ 9,189 | $ 7,641 | ||||||||
Total current assets | 28,672 | 27,353 | |||||||||
Long-term assets | 185,106 | 199,591 | |||||||||
Current liabilities | 34,884 | 36,819 | |||||||||
Long-term liabilities | 117,400 | 119,025 | |||||||||
Noncontrolling interests | $ 8,459 | $ 8,765 |
Investments in Equity Securit_7
Investments in Equity Securities (Investment in JUUL Narrative) (Details) shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2020director | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)directorshares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)directorshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 20, 2020USD ($) | Apr. 30, 2020 | |
Investments [Line Items] | |||||||||||||||
Investment in JUUL | $ | $ 0 | $ 5,000,000 | $ 12,800,000,000 | ||||||||||||
Equity securities without readily determinable fair value, upward price adjustment | $ | $ 0 | ||||||||||||||
Equity securities without readily determinable fair value, downward price adjustment, cumulative amount | $ | $ 0 | ||||||||||||||
Impairment of JUUL equity securities | $ | $ 0 | $ 2,600,000,000 | $ 0 | $ 0 | $ 4,100,000,000 | $ 4,500,000,000 | $ 0 | $ 0 | $ 2,600,000,000 | 8,600,000,000 | $ 0 | ||||
JUUL [Member] | |||||||||||||||
Investments [Line Items] | |||||||||||||||
Investment in JUUL | $ | $ 12,800,000,000 | ||||||||||||||
Equity securities without readily determinable fair value, ownership percentage | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||||
Service agreement term | 6 years | ||||||||||||||
Non-compete release trigger period | 12 months | ||||||||||||||
Non-compete release trigger percentage of initial investment carrying value | 10.00% | ||||||||||||||
Equity securities without readily determinable fair value, quantitative assessment adjustment, annual amount | $ | $ 12,800,000,000 | ||||||||||||||
No litigation period | 1 year | ||||||||||||||
Number of board members | director | 7 | 7 | |||||||||||||
Number of board members upon share conversion | director | 9 | ||||||||||||||
Number of independent board members upon share conversion | director | 3 | ||||||||||||||
Number of independent board members appointed by investor upon share conversion | director | 1 | ||||||||||||||
Number of independent board members appointed by investee stockholders upon share conversion | director | 2 | ||||||||||||||
Number of investor nominating committee designees | director | 1 | ||||||||||||||
Number of directors designated by investor upon share conversion | director | 2 | ||||||||||||||
Number of directors designated by JUUL shareholders other than Altria upon share conversion | director | 3 | ||||||||||||||
Number of oversight committee directors designated by investor upon share conversion | director | 2 | ||||||||||||||
Number of oversight committee chair directors designated by investor upon share conversion | director | 1 | ||||||||||||||
Equity investment, fair value option, voting shares (in shares) | shares | 42 | 42 | |||||||||||||
Equity securities without readily determinable fair value, unrealized gain (loss) | $ | $ 100,000,000 | ||||||||||||||
Impairment of JUUL equity securities | $ | 4,100,000,000 | $ 4,500,000,000 | $ 2,600,000,000 | 8,600,000,000 | |||||||||||
Equity securities without readily determinable fair value, amount | $ | $ 4,200,000,000 | 4,200,000,000 | |||||||||||||
Investment acquisition costs | $ | $ 8,000,000 | $ 85,000,000 |
Investments in Equity Securit_8
Investments in Equity Securities (JUUL Investment Classified as Level 3) (Details) - Equity Method Investments, Fair Value Option $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning of period | $ 0 |
Transfers into Level 3 fair value | 1,605 |
Unrealized gains included with income / (losses) from equity investments | 100 |
Balance at end of period | $ 1,705 |
Investments in Equity Securit_9
Investments in Equity Securities (Investment in Cronos Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions, $ in Billions | Mar. 31, 2019USD ($) | Mar. 31, 2019CAD ($)$ / sharesshares | Mar. 31, 2019CAD ($)$ / sharesshares | Dec. 31, 2020USD ($)directorboard_membershares | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) |
Investments [Line Items] | ||||||
Equity method investment, difference between carrying amount and fair value, percentage | 8.00% | 8.00% | 20.00% | |||
Cronos [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, number of shares owned, common (in shares) | shares | 149.8 | 149.8 | 156.6 | |||
Equity method investment, ownership percentage (approximately) | 45.00% | 45.00% | 43.50% | 45.00% | ||
Payments to acquire equity method investments and derivative instruments, investing | $ 1,800 | $ 2.4 | $ 2.4 | |||
Equity method investment, warrant exercised, ownership percentage | 54.00% | 54.00% | ||||
Payments to acquire equity method investments | 400 | |||||
Payments for deferred tax liability | 300 | |||||
Number of directors nominated | director | 4 | |||||
Number of independent directors nominated | director | 1 | |||||
Number of members on the board of directors | board_member | 7 | |||||
Difference between carrying amount and underlying equity | $ 200 | |||||
Equity method investments | 1,173 | $ 1,305 | ||||
Cronos [Member] | Common Stock [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investments | 1,010 | 1,002 | ||||
Cronos [Member] | Level 1 [Member] | ||||||
Investments [Line Items] | ||||||
Fair value of investment | $ 1,100 | $ 1,200 | ||||
Equity Contract, Preemptive Rights [Member] | Cronos [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, price per share if exercised | $ / shares | $ 16.25 | $ 16.25 | ||||
Equity method investment, number of shares eligible for purchase | shares | 30 | |||||
Payments for derivative instrument, investing activities | 500 | |||||
Equity method investment, total exercise price | $ 400 | $ 0.5 | ||||
Equity Contract, Warrant [Member] | Cronos [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, price per share if exercised | $ / shares | $ 19 | $ 19 | ||||
Equity method investment, number of shares eligible for purchase | shares | 80 | |||||
Equity method investment, percentage of shares eligible for purchase | 10.00% | 10.00% | ||||
Payments for derivative instrument, investing activities | $ 1,200 | |||||
Equity method investment, total exercise price | $ 1,200 | $ 1.5 |
Investments in Equity Securi_10
Investments in Equity Securities (Summary of Financial Data in Cronos) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net revenues | $ 6,304 | $ 7,123 | $ 6,367 | $ 6,359 | $ 6,007 | $ 6,856 | $ 6,619 | $ 5,628 | $ 26,153 | $ 25,110 | $ 25,364 |
Gross profit | 3,146 | 3,717 | 3,287 | 2,873 | 3,084 | 3,497 | 3,319 | 2,811 | 13,023 | 12,711 | 12,254 |
Earnings from continuing operations | 6,890 | 766 | 9,341 | ||||||||
Net earnings | 1,922 | (956) | $ 1,938 | $ 1,550 | (1,814) | (2,602) | $ 1,997 | $ 1,121 | 4,454 | (1,298) | 6,967 |
Net earnings attributable to Cronos | (13) | (5) | $ 4 | ||||||||
Total current assets | 7,117 | 4,824 | 7,117 | 4,824 | |||||||
Current liabilities | 9,063 | 8,174 | 9,063 | 8,174 | |||||||
Noncontrolling interests | $ 40 | $ 38 | 40 | 38 | |||||||
Cronos Group Inc. [Member] | Equity Method Investments [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net revenues | 37 | 21 | |||||||||
Gross profit | (31) | 10 | |||||||||
Earnings from continuing operations | 99 | 1,117 | |||||||||
Net earnings | 98 | 1,117 | |||||||||
Net earnings attributable to Cronos | $ 100 | $ 1,117 | |||||||||
Total current assets | 1,394 | 1,575 | |||||||||
Long-term assets | 525 | 511 | |||||||||
Current liabilities | 143 | 457 | |||||||||
Long-term liabilities | 12 | 7 | |||||||||
Noncontrolling interests | $ (3) | $ 0 |
Financial Instruments (Aggregat
Financial Instruments (Aggregate Notional Amounts, Aggregate Fair Values and Carrying Values) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Carrying value | $ 29,471 | $ 28,042 |
Foreign Currency Denominated Debt [Member] | ||
Derivative [Line Items] | ||
Carrying value | 5,171 | 4,741 |
Fair value | 5,687 | 5,057 |
Foreign Currency Contract [Member] | Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Foreign currency contracts (notional amounts) | $ 1,066 | $ 2,246 |
Financial Instruments (Aggreg_2
Financial Instruments (Aggregate Fair Value and Carrying Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying value | $ 29,471 | $ 28,042 |
Fair value | $ 34,682 | $ 30,710 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value using Black-Scholes Option-Pricing Model) (Details) | Dec. 31, 2020$ / sharesyear | Dec. 31, 2019year$ / shares |
Share Price (Canadian $/share) [Member] | Fixed Price Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | $ / shares | 8.84 | 9.97 |
Share Price (Canadian $/share) [Member] | Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | $ / shares | 8.84 | 9.97 |
Expected Life [Member] | Fixed Price Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 1.05 | 1.67 |
Expected Life [Member] | Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 2.18 | 3.18 |
Expected Volatility [Member] | Fixed Price Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.8068 | 0.8161 |
Expected Volatility [Member] | Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.8068 | 0.8161 |
Risk Free Interest Rate [Member] | Fixed Price Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.0013 | 0.0171 |
Risk Free Interest Rate [Member] | Fixed Price Preemptive Rights [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.0006 | 0.0166 |
Risk Free Interest Rate [Member] | Fixed Price Preemptive Rights [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.0039 | 0.0174 |
Risk Free Interest Rate [Member] | Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.0021 | 0.0169 |
Expected Dividend Rate [Member] | Fixed Price Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0 | 0 |
Expected Dividend Rate [Member] | Warrant [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0 | 0 |
Weighted Average Expected Term [Member] | Fixed Price Preemptive Rights [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 0.25 | 0.25 |
Weighted Average Expected Term [Member] | Fixed Price Preemptive Rights [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative asset, measurement input | 5 | 6 |
Financial Instruments (Beginnin
Financial Instruments (Beginning and Ending Balance of Fixed-price Preemptive Rights and Warrants) (Details) - Level 3 [Member] - Equity Contract [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 303 | $ 0 |
Initial investment in Fixed-price Preemptive Rights and warrant | 0 | 1,736 |
Exercise of Fixed-price Preemptive Rights | 0 | (22) |
Pre-tax earnings (losses) recognized in net earnings | (140) | (1,411) |
Balance at end of period | $ 163 | $ 303 |
Financial Instruments (Fair V_2
Financial Instruments (Fair Value Derivative Financial Instruments) (Details) - Net Investment Hedging [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | $ 163 | $ 349 |
Fair Value of Liabilities | 87 | 28 |
Foreign Currency Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 0 | 46 |
Fair Value of Liabilities | 87 | 28 |
Foreign Currency Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 0 | 46 |
Foreign Currency Contract [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 0 | 0 |
Foreign Currency Contract [Member] | Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 87 | 7 |
Foreign Currency Contract [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liabilities | 0 | 21 |
Equity Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 163 | 303 |
Equity Contract, Warrant [Member] | Not Designated as Hedging Instrument [Member] | Investments In Equity Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | 139 | 234 |
Fixed Price Preemptive Rights [Member] | Not Designated as Hedging Instrument [Member] | Investments In Equity Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Assets | $ 24 | $ 69 |
Financial Instruments (Change i
Financial Instruments (Change in Fair Values) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Unrealized gain (loss) on derivatives | $ (140) | $ (1,411) |
Fixed Price Preemptive Rights [Member] | ||
Derivative [Line Items] | ||
Unrealized gain (loss) on derivatives | (45) | (434) |
Warrant [Member] | ||
Derivative [Line Items] | ||
Unrealized gain (loss) on derivatives | $ (95) | $ (977) |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Millions, $ in Billions | Mar. 31, 2019USD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019CAD ($) |
Derivative [Line Items] | ||||||||
Loss on Cronos-related financial instruments | $ 140 | $ 1,442 | $ 0 | |||||
Cronos [Member] | ||||||||
Derivative [Line Items] | ||||||||
Payments to acquire equity method investments and derivative instruments, investing | $ 1,800 | $ 2.4 | $ 2.4 | |||||
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | $ 1,800 | $ 1,800 | $ 2.4 | |||||
Loss on Cronos-related financial instruments | $ 31 |
Financial Instruments (Effects
Financial Instruments (Effects of Net Investment Hedges on Accumulated Other Comprehensive Losses) (Details) - Net Investment Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses | $ (503) | $ 58 |
Gain (Loss) Recognized in Net Earnings (Losses) | 40 | 36 |
Foreign Currency Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses | (79) | 23 |
Gain (Loss) Recognized in Net Earnings (Losses) | 40 | 36 |
Foreign Currency Denominated Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses | (424) | 35 |
Gain (Loss) Recognized in Net Earnings (Losses) | $ 0 | $ 0 |
Short-Term Borrowings and Bor_2
Short-Term Borrowings and Borrowing Arrangements (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2020USD ($)Extension | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Short-term Debt [Line Items] | |||||
Short-term borrowings | $ 0 | $ 0 | |||
Debt instrument, covenant, consolidated EBITDA to interest expense ratio, minimum | 4 | ||||
Debt instrument, consolidated EBITDA to interest expense ratio | 9 | ||||
Repayment of short-term borrowings | $ 3,000,000,000 | 12,800,000,000 | $ 0 | ||
Term Loan Agreement, JUUL and Cronos [Member] | |||||
Short-term Debt [Line Items] | |||||
Repayment of short-term borrowings | $ 12,800,000,000 | ||||
Write off of debt issuance cost (approximately) | 95,000,000 | ||||
Line of Credit [Member] | Revolving Credit Facility Due August 2023 [Member] | Revolving Credit Facility [Member] | |||||
Short-term Debt [Line Items] | |||||
Term of debt | 5 years | ||||
Debt instrument, face amount | $ 3,000,000,000 | ||||
Debt instrument, number of extensions | Extension | 2 | ||||
Debt instrument, extension term | 1 year | ||||
Proceeds from issuance of debt | $ 3,000,000,000 | ||||
Long-term line of credit | $ 0 | $ 0 | |||
Credit line available under the credit agreement | $ 3,000,000,000 | ||||
Line of Credit [Member] | Revolving Credit Facility Due August 2023 [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Short-term Debt [Line Items] | |||||
Applicable portion of interest rate for borrowing | 1.00% | ||||
Notes Payable, Other Payables [Member] | Term Loan Agreement [Member] | |||||
Short-term Debt [Line Items] | |||||
Short-term borrowings | $ 12,800,000,000 |
Long-Term Debt (Components of L
Long-Term Debt (Components of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 29,471 | $ 28,042 |
Less current portion of long-term debt | 1,500 | 1,000 |
Long-term debt excluding current portion | 27,971 | 27,042 |
Notes 2.350% To 10.20%, interest payable semi-annually, due through 2059 [Member] | Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 24,258 | $ 23,259 |
Notes 2.350% To 10.20%, interest payable semi-annually, due through 2059 [Member] | Notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.35% | |
Notes 2.350% To 10.20%, interest payable semi-annually, due through 2059 [Member] | Notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 10.20% | |
Notes 2.350% To 10.20%, interest payable semi-annually, due through 2059 [Member] | Notes [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.60% | 4.60% |
Debenture, 7.75% interest payable semi-annually, due 2027 [Member] | Debenture [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 42 | $ 42 |
Stated interest rate | 7.75% | |
Euro notes, 1.000% to 3.125%, interest payable annually, due through 2031 [Member] | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,171 | $ 4,741 |
Euro notes, 1.000% to 3.125%, interest payable annually, due through 2031 [Member] | Notes Payable, Other Payables [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.00% | |
Euro notes, 1.000% to 3.125%, interest payable annually, due through 2031 [Member] | Notes Payable, Other Payables [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.125% | |
Euro notes, 1.000% to 3.125%, interest payable annually, due through 2031 [Member] | Notes Payable, Other Payables [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.00% | 2.00% |
Long-Term Debt (Aggregate Matur
Long-Term Debt (Aggregate Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 1,500 | |
2022 | 2,900 | |
2023 | 1,877 | |
2024 | 2,400 | |
2025 | 1,666 | |
Thereafter | 19,358 | |
Long-term debt before debt issuance costs and debt discount | 29,701 | |
Less: debt issuance costs | 151 | |
Less: debt discounts | 79 | |
Long-term debt | $ 29,471 | $ 28,042 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2020 | |
Debt Instrument [Line Items] | ||||
Interest payable | $ 458,000,000 | $ 470,000,000 | ||
Repayments of long-term debt | 1,000,000,000 | $ 1,144,000,000 | $ 864,000,000 | |
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 1,000,000,000 | |||
Senior Notes [Member] | Change of Control and Loss of Investment Grade Rating [Member] | ||||
Debt Instrument [Line Items] | ||||
Required purchase price as percentage of aggregate principal amount | 101.00% | |||
USD Denominated Notes [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 2,000,000,000 | |||
USD Denominated Notes Due 2025 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 750,000,000 | |||
Stated interest rate | 2.35% | |||
USD Denominated Notes Due 2030 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 750,000,000 | |||
Stated interest rate | 3.40% | |||
USD Denominated Notes Due 2050 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Stated interest rate | 4.45% |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 18 Months Ended | |||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jan. 31, 2021 | Apr. 30, 2020 | Jul. 31, 2019 | May 31, 2018 | Jan. 31, 2018 | Jul. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2015 | |
Class of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized (in shares) | 12,000,000,000 | |||||||||||||
Increase in quarterly dividend rate | 2.40% | |||||||||||||
Cash dividends declared (USD per share) | $ 0.86 | $ 0.84 | $ 3.40 | $ 3.28 | $ 3 | |||||||||
Common stock, dividends, per share, annualized (USD per share) | $ 3.44 | |||||||||||||
Stock repurchase program, authorized amount | $ 0 | |||||||||||||
Repurchase of common stock (in shares) | 16,503,317 | 27,878,324 | ||||||||||||
Average price of repurchased shares (USD per share) | $ 51.24 | $ 60 | ||||||||||||
January 2018 Share Repurchase Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | $ 1,000,000,000 | ||||||||||||
Repurchase of common stock (in shares) | 6,400,000 | 27,600,000 | 34,000,000 | |||||||||||
Average price of repurchased shares (USD per share) | $ 54.36 | $ 59.89 | $ 58.86 | |||||||||||
July 2019 Share Repurchase Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | |||||||||||||
Repurchase of common stock (in shares) | 10,100,000 | |||||||||||||
Average price of repurchased shares (USD per share) | $ 49.29 | |||||||||||||
Amount remaining in the share repurchased program | $ 500,000,000 | |||||||||||||
July 2015 Share Repurchase Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock repurchase program, authorized amount | $ 4,000,000,000 | $ 3,000,000,000 | $ 1,000,000,000 | |||||||||||
Repurchase of common stock (in shares) | 300,000 | |||||||||||||
Average price of repurchased shares (USD per share) | $ 71.68 | |||||||||||||
January 2021 Share Repurchase Program [Member] | Subsequent Event [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||||||||||||
Serial Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | |||||||||||||
Preferred stock, par value (USD per share) | $ 1 | |||||||||||||
Preferred stock, shares issued (in shares) | 0 | |||||||||||||
Share-based Payment Arrangement [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Shares of common stock reserved for stock-based awards (in shares) | 28,357,980 |
Capital Stock (Schedule of Issu
Capital Stock (Schedule of Issued Repurchased and Outstanding Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock, Shares Outstanding [Roll Forward] | |||
Beginning balance, Shares Issued (in shares) | 2,805,961,317 | 2,805,961,317 | 2,805,961,317 |
Beginning balance, Shares Repurchased (in shares) | (947,979,763) | (931,903,722) | (904,702,125) |
Beginning balance, Shares Outstanding (in shares) | 1,857,981,554 | 1,874,057,595 | 1,901,259,192 |
Stock award activity (in shares) | 437,611 | 427,276 | 676,727 |
Repurchases of common stock (in shares) | (16,503,317) | (27,878,324) | |
Ending balance, Shares Issued (in shares) | 2,805,961,317 | 2,805,961,317 | 2,805,961,317 |
Ending balance, Shares Repurchased (in shares) | (947,542,152) | (947,979,763) | (931,903,722) |
Ending balance, Shares Outstanding (in shares) | 1,858,419,165 | 1,857,981,554 | 1,874,057,595 |
Capital Stock (Schedule of Shar
Capital Stock (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 18 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Class of Stock [Line Items] | |||
Total number of shares repurchased (in shares) | 16,503,317 | 27,878,324 | |
Aggregate cost of shares repurchased | $ 845 | $ 1,673 | |
Average price per share of shares repurchased (USD per share) | $ 51.24 | $ 60 | |
July 2019 Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Total number of shares repurchased (in shares) | 10,100,000 | ||
Aggregate cost of shares repurchased | $ 500 | ||
Average price per share of shares repurchased (USD per share) | $ 49.29 | ||
January 2018 Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Total number of shares repurchased (in shares) | 6,400,000 | 27,600,000 | 34,000,000 |
Aggregate cost of shares repurchased | $ 345 | $ 1,655 | |
Average price per share of shares repurchased (USD per share) | $ 54.36 | $ 59.89 | $ 58.86 |
July 2015 Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Total number of shares repurchased (in shares) | 300,000 | ||
Aggregate cost of shares repurchased | $ 18 | ||
Average price per share of shares repurchased (USD per share) | $ 71.68 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, in years | 3 years | ||
Pre-tax compensation expense | $ 31 | $ 28 | $ 39 |
Deferred tax benefit | 8 | 7 | 9 |
Unamortized compensation expense | $ 54 | ||
Weighted-average period of recognition, in years | 2 years | ||
Weighted-average grant date fair value | $ 49 | $ 37 | $ 60 |
Weighted-average grant date fair value, per share (in USD per share) | $ 42.59 | $ 52.03 | $ 67.17 |
Granted, number of shares (in shares) | 1,162,118 | ||
Number of shares remaining (in shares) | 2,239,379 | 1,909,642 | |
Grant date fair value (in USD per share) | $ 51.76 | $ 61.46 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, in years | 3 years | ||
Pre-tax compensation expense | $ 4 | $ 4 | $ 7 |
Unamortized compensation expense | $ 9 | ||
Granted, number of shares (in shares) | 275,288 | 181,409 | 177,338 |
Number of shares remaining (in shares) | 409,392 | ||
Grant date fair value (in USD per share) | $ 49.63 | ||
Restricted Stock and Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value vested | $ 25 | $ 30 | $ 65 |
Common Stock [Member] | 2020 Performance Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares issuable under the stock compensation plan (in shares) | 25,000,000 | ||
Shares available to be granted (in shares) | 24,827,160 | ||
Common Stock [Member] | 2015 Directors Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares issuable under the stock compensation plan (in shares) | 1,000,000,000,000 | ||
Shares available to be granted (in shares) | 759,234 |
Stock Plans (Schedule of Restri
Stock Plans (Schedule of Restricted and Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Balance at beginning of year (in shares) | 1,909,642 | ||
Granted (in shares) | 1,162,118 | ||
Vested (in shares) | (542,331) | ||
Forfeited (in shares) | (290,050) | ||
Balance at end of year, (in shares) | 2,239,379 | 1,909,642 | |
Weighted-Average Grant Date Fair Value Per Share | |||
Balance at beginning of year (USD per share) | $ 61.46 | ||
Granted (USD per share) | 42.59 | $ 52.03 | $ 67.17 |
Vested (USD per share) | 66.22 | ||
Forfeited (USD per share) | 51.91 | ||
Balance at end of year (USD per share) | $ 51.76 | $ 61.46 |
Earnings (Losses) per Share (De
Earnings (Losses) per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings (losses) attributable to Altria | $ 1,924 | $ (952) | $ 1,943 | $ 1,552 | $ (1,809) | $ (2,600) | $ 1,996 | $ 1,120 | $ 4,467 | $ (1,293) | $ 6,963 |
Less: Distributed and undistributed earnings attributable to share-based awards | (8) | (7) | (8) | ||||||||
Earnings (losses) for basic and diluted EPS | $ 4,459 | $ (1,300) | $ 6,955 | ||||||||
Weighted-average shares for basic EPS (in shares) | 1,858 | 1,869 | 1,887 | ||||||||
Plus: contingently issuable PSUs (in shares) | 1 | 0 | 1 | ||||||||
Weighted-average shares for diluted EPS (in shares) | 1,859 | 1,869 | 1,888 |
Other Comprehensive Earnings__3
Other Comprehensive Earnings/Losses (Changes in Each Component of Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ 6,319 | $ 14,789 | $ 15,380 | |
Other comprehensive earnings (losses), net of deferred income taxes | (1,477) | (317) | (242) | |
Ending balances | 2,925 | 6,319 | 14,789 | |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (2,864) | (2,547) | (1,897) | |
Adoption of ASU No. 2018-02 | [1] | (408) | ||
Other comprehensive earnings (losses) before reclassifications | (2,071) | (545) | (475) | |
Deferred income taxes | 467 | 126 | 103 | |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | (1,604) | (419) | (372) | |
Amounts reclassified to net earnings (losses) | 169 | 139 | 177 | |
Deferred income taxes | (42) | (37) | (47) | |
Amounts reclassified to net earnings (losses), net of deferred income taxes | 127 | 102 | 130 | |
Other comprehensive earnings (losses), net of deferred income taxes | (1,477) | (317) | (242) | |
Ending balances | (4,341) | (2,864) | (2,547) | |
Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (2,192) | (2,168) | (1,839) | |
Adoption of ASU No. 2018-02 | (397) | |||
Other comprehensive earnings (losses) before reclassifications | (454) | (204) | (151) | |
Deferred income taxes | 115 | 51 | 39 | |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | (339) | (153) | (112) | |
Amounts reclassified to net earnings (losses) | 148 | 173 | 241 | |
Deferred income taxes | (37) | (44) | (61) | |
Amounts reclassified to net earnings (losses), net of deferred income taxes | 111 | 129 | 180 | |
Other comprehensive earnings (losses), net of deferred income taxes | (228) | (24) | 68 | |
Ending balances | (2,420) | (2,192) | (2,168) | |
Accumulated Equity Method Investments Attributable To Parent [Member] | AB InBev [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (693) | (374) | (54) | |
Adoption of ASU No. 2018-02 | (11) | |||
Other comprehensive earnings (losses) before reclassifications | (1,613) | (367) | (323) | |
Deferred income taxes | 352 | 75 | 64 | |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | (1,261) | (292) | (259) | |
Amounts reclassified to net earnings (losses) | 21 | (34) | (64) | |
Deferred income taxes | (5) | 7 | 14 | |
Amounts reclassified to net earnings (losses), net of deferred income taxes | 16 | (27) | (50) | |
Other comprehensive earnings (losses), net of deferred income taxes | (1,245) | (319) | (309) | |
Ending balances | (1,938) | (693) | (374) | |
Currency Translation Adjustments and Other [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 21 | (5) | (4) | |
Adoption of ASU No. 2018-02 | 0 | |||
Other comprehensive earnings (losses) before reclassifications | (4) | 26 | (1) | |
Deferred income taxes | 0 | 0 | 0 | |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | (4) | 26 | (1) | |
Amounts reclassified to net earnings (losses) | 0 | 0 | 0 | |
Deferred income taxes | 0 | 0 | 0 | |
Amounts reclassified to net earnings (losses), net of deferred income taxes | 0 | 0 | 0 | |
Other comprehensive earnings (losses), net of deferred income taxes | (4) | 26 | (1) | |
Ending balances | $ 17 | $ 21 | $ (5) | |
[1] | In 2018, Altria adopted Accounting Standards Update (“ASU”) 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), and reclassified the stranded income tax effects of the 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) on items with accumulated other comprehensive losses to earnings reinvested in the business. |
Other Comprehensive Earnings__4
Other Comprehensive Earnings/Losses (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net periodic benefit income, excluding service cost | $ (77) | $ (37) | $ (34) | ||||||||
Earnings from equity investment in ABI | 211 | (1,725) | (890) | ||||||||
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) | $ (1,922) | $ 956 | $ (1,938) | $ (1,550) | $ 1,814 | $ 2,602 | $ (1,997) | $ (1,121) | (4,454) | 1,298 | (6,967) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings from equity investment in ABI | 21 | (34) | (64) | ||||||||
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) | 169 | 139 | 177 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net loss [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net periodic benefit income, excluding service cost | 173 | 200 | 276 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Prior service costs/credit [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net periodic benefit income, excluding service cost | (25) | (27) | (35) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Benefit Plans [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net periodic benefit income, excluding service cost | $ 148 | $ 173 | $ 241 |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes and Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
United States | $ 6,842 | $ 266 | $ 9,441 | |
Outside United States | 48 | 500 | (100) | |
Earnings before income taxes | 6,890 | 766 | 9,341 | |
Current: | ||||
Federal | 2,025 | 1,686 | 1,911 | |
State and local | 553 | 470 | 519 | |
Outside United States | 22 | 3 | 1 | |
Total current provision for income taxes | 2,600 | 2,159 | 2,431 | |
Deferred: | ||||
Federal | (130) | (78) | (18) | |
State and local | (34) | (19) | (42) | |
Outside United States | 0 | 2 | 3 | |
Total deferred provision for income taxes | (164) | (95) | (57) | $ (57) |
Total provision for income taxes | $ 2,436 | $ 2,064 | $ 2,374 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Beginning and Ending Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 64 | $ 85 | $ 66 |
Additions for tax positions of prior years | 12 | 32 | 22 |
Reductions for tax positions of prior years | (2) | (16) | (1) |
Tax settlements | 0 | (37) | (2) |
Balance at end of year | $ 74 | $ 64 | $ 85 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits and Consolidated Liability for Tax Contingencies) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 74 | $ 64 | $ 85 | $ 66 |
Accrued interest and penalties | 15 | 11 | ||
Tax credits and other indirect benefits | (1) | (1) | ||
Liability for tax contingencies | $ 88 | $ 74 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits if recognized would impact effective tax rate | $ 47 | $ 40 | |
Unrecognized tax benefits if recognized would affect deferred taxes | 27 | 24 | |
Interest (income) expense associated with uncertain tax position | 4 | 6 | $ 5 |
Potential decrease in liability for uncertain tax positions | 8 | ||
Provision for income taxes | 2,436 | 2,064 | 2,374 |
Effective income tax rate reconciliation, Tax Cuts and Jobs Act, transition tax on accumulated foreign earnings, amount | 84 | 14 | |
Effective income tax rate reconciliation, Tax Cuts and Jobs Act, tax credit, foreign | 38 | 34 | |
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit) | 188 | ||
Effective income tax rate reconciliation, Tax Cuts and Jobs Act, transition tax on accumulated foreign earnings, amount | $ 140 | ||
Audit Adjustments Prior Year Tax Audits [Member] | |||
Income Taxes [Line Items] | |||
Tax benefit recorded | 105 | ||
Accruals no longer required [Member] | |||
Income Taxes [Line Items] | |||
Tax benefit recorded | 100 | ||
Equity Method Investments [Member] | |||
Income Taxes [Line Items] | |||
Tax benefit recorded | 79 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses carry forward | 808 | ||
JUUL [Member] | |||
Income Taxes [Line Items] | |||
Provision for income taxes | 612 | ||
Valuation allowance release | 24 | ||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | 2,610 | $ 2,024 | |
Cronos Group Inc. [Member] | |||
Income Taxes [Line Items] | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 121 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Effective Tax Rate and U.S. Federal Statutory Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
$ | |||
U.S. federal statutory rate | $ 1,447 | $ 161 | $ 1,962 |
State and local income taxes, net of federal tax benefit | 410 | 356 | 377 |
Tax basis in foreign investments | 23 | 84 | 140 |
Deemed repatriation tax | 0 | 0 | 14 |
Uncertain tax positions | 9 | (40) | 8 |
Other | 6 | (29) | (38) |
Total provision for income taxes | $ 2,436 | $ 2,064 | $ 2,374 |
% | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal tax benefit | 6.00% | 46.50% | 4.00% |
Tax basis in foreign investments | 0.30% | 11.00% | 1.50% |
Deemed repatriation tax | 0.00% | 0.00% | 0.10% |
Uncertain tax positions | 0.10% | (5.20%) | 0.10% |
Other | 0.10% | (3.80%) | (0.40%) |
Effective tax rate | 35.40% | 269.50% | 25.40% |
Effective income tax rate reconciliation, deferred profit sharing dividends | $ 21 | ||
ABI [Member] | |||
$ | |||
Investment in ABI | $ (16) | $ (210) | $ (104) |
% | |||
Investment in ABI | (0.20%) | (27.40%) | (1.10%) |
JUUL [Member] | |||
$ | |||
Investment | $ 537 | $ 1,808 | $ 15 |
Total provision for income taxes | $ 612 | ||
% | |||
Investment | 7.80% | 236.00% | 0.20% |
Cronos [Member] | |||
$ | |||
Investment | $ 20 | $ (66) | $ 0 |
% | |||
Investment | 0.30% | (8.60%) | 0.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||||
Accrued postretirement and postemployment benefits | $ 524 | $ 491 | ||
Settlement charges | 888 | 833 | ||
Accrued pension costs | 148 | 131 | ||
Investment in JUUL | 2,642 | 2,047 | ||
Investment in Cronos | 128 | 197 | ||
Net operating losses and tax credit carryforwards | 81 | 92 | ||
Total deferred income tax assets | 4,411 | 3,791 | ||
Deferred income tax liabilities: | ||||
Property, plant and equipment | (273) | (255) | ||
Intangible assets | (2,806) | (2,758) | ||
Investment in ABI | (2,819) | (3,115) | ||
Finance assets, net | (117) | (204) | ||
Other | (12) | (158) | ||
Total deferred income tax liabilities | (6,027) | (6,490) | ||
Valuation allowances | (2,817) | (2,324) | $ (71) | $ 0 |
Net deferred income tax liabilities | $ (4,433) | $ (5,023) |
Income Taxes (Summary of Valuat
Income Taxes (Summary of Valuation Allowance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 2,324 | $ 71 | $ 0 |
Additions to valuation allowance related to Altria’s initial Investment in Cronos | 0 | 352 | 0 |
Additions to valuation allowance charged to income tax expense | 692 | 2,063 | 71 |
Reductions to valuation allowance credited to income tax benefit | (200) | (159) | 0 |
Foreign currency translation | 1 | (3) | 0 |
Balance at end of year | $ 2,817 | $ 2,324 | $ 71 |
Segment Reporting (Segment Data
Segment Reporting (Segment Data Schedule) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 6,304 | $ 7,123 | $ 6,367 | $ 6,359 | $ 6,007 | $ 6,856 | $ 6,619 | $ 5,628 | $ 26,153 | $ 25,110 | $ 25,364 |
Operating income | 10,873 | 10,326 | 9,115 | ||||||||
Amortization of intangibles | (72) | (44) | (38) | ||||||||
Corporate asset impairment and exit costs | 4 | (188) | (386) | ||||||||
Interest and other debt expense, net | (1,209) | (1,280) | (665) | ||||||||
Net periodic benefit income, excluding service cost | 77 | 37 | 34 | ||||||||
(Income) losses from equity investments | (111) | 1,725 | 890 | ||||||||
Impairment of JUUL equity securities | $ 0 | $ (2,600) | $ 0 | $ 0 | $ (4,100) | $ (4,500) | $ 0 | $ 0 | (2,600) | (8,600) | 0 |
Loss on Cronos-related financial instruments | (140) | (1,442) | 0 | ||||||||
Loss on ABI/SABMiller business combination | 0 | 0 | (33) | ||||||||
Earnings before income taxes | 6,890 | 766 | 9,341 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General corporate expenses | (227) | (199) | (315) | ||||||||
Corporate asset impairment and exit costs | 1 | (1) | 0 | ||||||||
Smokeable Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 23,089 | 21,996 | 22,297 | ||||||||
Smokeable Products [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 9,985 | 9,009 | 8,408 | ||||||||
Oral Tobacco Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,533 | 2,367 | 2,262 | ||||||||
Oral Tobacco Products [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 1,718 | 1,580 | 1,431 | ||||||||
Wine [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 614 | 689 | 691 | ||||||||
Wine [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | (360) | (3) | 50 | ||||||||
All Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | (83) | 58 | 114 | ||||||||
All Other [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ (172) | $ (16) | $ (421) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 6,304,000,000 | $ 7,123,000,000 | $ 6,367,000,000 | $ 6,359,000,000 | $ 6,007,000,000 | $ 6,856,000,000 | $ 6,619,000,000 | $ 5,628,000,000 | $ 26,153,000,000 | $ 25,110,000,000 | $ 25,364,000,000 |
Cost of sales | 7,818,000,000 | 7,085,000,000 | 7,373,000,000 | ||||||||
Philip Morris Capital Corporation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Increase (decrease) residual value | 125,000,000 | $ 0 | $ 0 | ||||||||
COVID-19 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Cost of sales | $ 0 | $ 0 | $ 50,000,000 | $ 0 | $ 50,000,000 | ||||||
Revenue Benchmark [Member] | Credit Concentration Risk [Member] | McLane Company Inc [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Contribution of net revenues by major customer percentage | 26.00% | 25.00% | 27.00% | ||||||||
Revenue Benchmark [Member] | Credit Concentration Risk [Member] | Core-Mark Holding Company, Inc. [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Contribution of net revenues by major customer percentage | 17.00% | 15.00% | 14.00% | ||||||||
Smokeable Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 23,089,000,000 | $ 21,996,000,000 | $ 22,297,000,000 | ||||||||
Smokeable Products [Member] | Non-Participating Manufacturer Arbitration Panel Decision [Member] | Operating Income (Loss) [Member] | NPM Adjustment to Cost Of Sales [Member] | PM USA [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
(Gain) Loss Related to Litigation Settlement | 4,000,000 | 0 | (145,000,000) | ||||||||
Smokeable Products [Member] | COVID-19 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Cost of sales | 41,000,000 | ||||||||||
Smokeable Products [Member] | Cigarettes [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 22,135,000,000 | 21,158,000,000 | 21,506,000,000 | ||||||||
Smokeable Products [Member] | Cigars [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 954,000,000 | 838,000,000 | 791,000,000 | ||||||||
Wine [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 614,000,000 | $ 689,000,000 | $ 691,000,000 | ||||||||
Wine [Member] | Revenue Benchmark [Member] | Credit Concentration Risk [Member] | Two Distributors [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Contribution of net revenues by major customer percentage | 68.00% | 67.00% | 64.00% | ||||||||
Oral Tobacco Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 2,533,000,000 | $ 2,367,000,000 | $ 2,262,000,000 | ||||||||
Oral Tobacco Products [Member] | COVID-19 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Cost of sales | $ 9,000,000 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Depreciation Expense and Capital Expenditures of Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 185 | $ 182 | $ 189 |
Capital expenditures | 231 | 246 | 238 |
Operating Segments [Member] | Smokeable Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 81 | 88 | 90 |
Capital expenditures | 49 | 61 | 81 |
Operating Segments [Member] | Oral Tobacco Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 32 | 27 | 28 |
Capital expenditures | 67 | 44 | 73 |
Operating Segments [Member] | Wine [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 40 | 41 | 40 |
Capital expenditures | 31 | 63 | 40 |
General Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 32 | 26 | 31 |
Capital expenditures | $ 84 | $ 78 | $ 44 |
Segment Reporting (Schedule o_2
Segment Reporting (Schedule of Pre-tax Tobacco and Health Litigation Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||||||||
Provision related to litigation recorded | $ 7 | $ 34 | $ 18 | $ 24 | $ 29 | $ 3 | $ 28 | $ 17 | |||
Tobacco and Health Litigation Cases [Member] | |||||||||||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||||||||
Provision related to litigation recorded | $ 83 | $ 77 | $ 131 | ||||||||
Tobacco and Health Litigation Cases [Member] | Operating Income (Loss) [Member] | Operating Segments [Member] | Oral Tobacco Products [Member] | |||||||||||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||||||||
Provision related to litigation recorded | 0 | 0 | 10 | ||||||||
Tobacco and Health Litigation Cases [Member] | 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 | 4 | 5 | 18 | ||||||||
PM USA [Member] | Tobacco and Health Litigation Cases [Member] | 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 | $ 79 | $ 72 | $ 103 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts charged to expense for defined contribution plans | $ 88,000,000 | $ 78,000,000 | $ 85,000,000 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 9,100,000,000 | 8,400,000,000 | |
Accumulated benefit obligation | 393,000,000 | 357,000,000 | |
Fair value of plan assets | 149,000,000 | 134,000,000 | |
Projected benefit obligation | 9,324,000,000 | 8,522,000,000 | |
Defined benefit plan, pension plan with projected benefit obligation in excess of plan assets, plan assets | 8,750,000,000 | 8,023,000,000 | |
Defined benefit plan, plan assets, amount | $ 8,911,000,000 | $ 8,167,000,000 | $ 7,138,000,000 |
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 6.60% | 7.80% | 7.80% |
Pension [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions | $ 30,000,000 | ||
Pension [Member] | Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Composition of plan assets | 1.00% | ||
Pension [Member] | Below grade investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Composition of plan assets | 8.00% | ||
Pension [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation percentage | 70.00% | ||
Pension [Member] | Equity Securities [Member] | Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Composition of plan assets | 1.00% | ||
Pension [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation percentage | 30.00% | ||
Pension [Member] | Fixed Income Securities [Member] | Below grade investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Composition of plan assets | 11.00% | ||
Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 201,000,000 | $ 213,000,000 | $ 211,000,000 |
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 7.70% | 7.80% | 7.80% |
Postretirement Benefit Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions | $ 60,000,000 | ||
Postretirement Benefit Plan [Member] | Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 0 | ||
Postretirement Benefit Plan [Member] | Below grade investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Composition of plan assets | 3.00% | ||
Postretirement Benefit Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation percentage | 55.00% | ||
Postretirement Benefit Plan [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation percentage | 45.00% | ||
Postretirement Benefit Plan [Member] | Fixed Income Securities [Member] | Below grade investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Composition of plan assets | 8.00% | ||
Level 3 [Member] | Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 0 | $ 0 |
Benefit Plans (Projected Benefi
Benefit Plans (Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets: | |||
Accrued pension costs | $ (551) | $ (473) | |
Accrued postretirement health care costs | (1,951) | (1,797) | |
Pension [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 8,659 | 7,726 | |
Service cost | 74 | 70 | $ 81 |
Interest cost | 251 | 306 | 276 |
Benefits paid | (477) | (493) | |
Actuarial losses | 970 | 1,025 | |
Settlement and curtailment | 0 | 25 | |
Other | (12) | 0 | |
Benefit obligation at end of year | 9,465 | 8,659 | 7,726 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 8,167 | 7,138 | |
Actual return on plan assets | 1,188 | 1,466 | |
Employer contributions | 33 | 56 | |
Benefits paid | (477) | (493) | |
Fair value of plan assets at end of year | 8,911 | 8,167 | 7,138 |
Funded status at December 31 | (554) | (492) | |
Other accrued liabilities | (23) | (26) | |
Accrued pension costs | (551) | (473) | |
Other assets | 20 | 7 | |
Accrued postretirement health care costs | 0 | 0 | |
Defined benefit plan, amounts for asset (liability) recognized in statement of financial position | (554) | (492) | |
Postretirement Benefit Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,091 | 2,040 | |
Service cost | 16 | 16 | 18 |
Interest cost | 59 | 76 | 70 |
Benefits paid | (107) | (126) | |
Actuarial losses | 169 | 78 | |
Settlement and curtailment | 0 | 7 | |
Other | 1 | 0 | |
Benefit obligation at end of year | 2,229 | 2,091 | 2,040 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 213 | 211 | |
Actual return on plan assets | 21 | 45 | |
Employer contributions | 0 | 0 | |
Benefits paid | (33) | (43) | |
Fair value of plan assets at end of year | 201 | 213 | $ 211 |
Funded status at December 31 | (2,028) | (1,878) | |
Other accrued liabilities | (77) | (81) | |
Accrued pension costs | 0 | 0 | |
Other assets | 0 | 0 | |
Accrued postretirement health care costs | (1,951) | (1,797) | |
Defined benefit plan, amounts for asset (liability) recognized in statement of financial position | $ (2,028) | $ (1,878) |
Benefit Plans (Assumptions to D
Benefit Plans (Assumptions to Determine Postretirement Benefit Obligations) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.70% | 3.40% |
Rate of compensation increase | 4.00% | 4.00% |
Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.60% | 3.40% |
Rate of compensation increase | 0.00% | 0.00% |
Health care cost trend rate assumed for next year | 6.50% | 6.50% |
Ultimate trend rate | 5.00% | 5.00% |
Benefit Plans (Schedule of Comp
Benefit Plans (Schedule of Components of Net Periodic Pension Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 74 | $ 70 | $ 81 |
Interest cost | 251 | 306 | 276 |
Expected return on plan assets | (502) | (576) | (585) |
Amortization of net loss | 134 | 159 | 225 |
Amortization of prior service cost (credit) | 5 | 6 | 4 |
Settlement and curtailment | 10 | 27 | 16 |
Net periodic benefit cost (income) | (28) | (8) | 17 |
Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 16 | 16 | 18 |
Interest cost | 59 | 76 | 70 |
Expected return on plan assets | (14) | (15) | (19) |
Amortization of net loss | 10 | 5 | 21 |
Amortization of prior service cost (credit) | (30) | (30) | (42) |
Settlement and curtailment | 0 | 5 | 0 |
Net periodic benefit cost (income) | $ 41 | $ 57 | $ 48 |
Benefit Plans (Termination, Set
Benefit Plans (Termination, Settlement and Curtailment Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | $ 0 | $ 6 | $ 0 |
Net loss | 10 | 20 | 13 |
Prior service cost (credit) | 0 | 1 | 3 |
Termination, settlement, and curtailment costs | 10 | 27 | 16 |
Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation | 10 | ||
Net loss | 0 | ||
Prior service cost (credit) | (5) | ||
Termination, settlement, and curtailment costs | $ 0 | $ 5 | $ 0 |
Benefit Plans (Assumptions used
Benefit Plans (Assumptions used to Determine Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate: Service cost | 3.70% | 4.60% | 3.80% |
Discount rate: Interest cost | 3.00% | 4.00% | 3.30% |
Expected rate of return on plan assets | 6.60% | 7.80% | 7.80% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate: Service cost | 3.60% | 4.50% | 3.80% |
Discount rate: Interest cost | 3.00% | 4.00% | 3.30% |
Expected rate of return on plan assets | 7.70% | 7.80% | 7.80% |
Health care cost trend rate | 6.50% | 6.50% | 7.00% |
Benefit Plans (Asset Allocation
Benefit Plans (Asset Allocations) (Details) | Dec. 31, 2020 |
Equity Securities [Member] | Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Composition of plan assets | 31.00% |
Equity Securities [Member] | Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Composition of plan assets | 58.00% |
Corporate Bonds [Member] | Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Composition of plan assets | 53.00% |
Corporate Bonds [Member] | Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Composition of plan assets | 31.00% |
US Treasury And Foreign Government Securities [Member] | Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Composition of plan assets | 16.00% |
US Treasury And Foreign Government Securities [Member] | Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Composition of plan assets | 11.00% |
Benefit Plans (Fair Values of P
Benefit Plans (Fair Values of Pension and Postretirement Plan Assets) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 8,911,000,000 | $ 8,167,000,000 | $ 7,138,000,000 |
Pension [Member] | US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 950,000,000 | 811,000,000 | |
Pension [Member] | Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 64,000,000 | 57,000,000 | |
Pension [Member] | Debt Security, Government, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 90,000,000 | 98,000,000 | |
Pension [Member] | Corporate Debt Security, Above Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 3,760,000,000 | 3,523,000,000 | |
Pension [Member] | Corporate Debt Security, Below Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 868,000,000 | 521,000,000 | |
Pension [Member] | Common stock: International equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 316,000,000 | 296,000,000 | |
Pension [Member] | Common stock: U.S. equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 970,000,000 | 1,263,000,000 | |
Pension [Member] | Other, Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 377,000,000 | 475,000,000 | |
Pension [Member] | U S Large Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 924,000,000 | $ 825,000,000 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | |
Pension [Member] | U S Small Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 455,000,000 | $ 386,000,000 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | |
Pension [Member] | International Developed Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 114,000,000 | $ 106,000,000 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | |
Pension [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 23,000,000 | $ (194,000,000) | |
Pension [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 7,395,000,000 | 7,044,000,000 | |
Pension [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 1,307,000,000 | 1,555,000,000 | |
Pension [Member] | Level 1 [Member] | US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 1 [Member] | Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 1 [Member] | Debt Security, Government, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 1 [Member] | Corporate Debt Security, Above Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 1 [Member] | Corporate Debt Security, Below Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 1 [Member] | Common stock: International equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 316,000,000 | 296,000,000 | |
Pension [Member] | Level 1 [Member] | Common stock: U.S. equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 970,000,000 | 1,263,000,000 | |
Pension [Member] | Level 1 [Member] | Other, Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 21,000,000 | (4,000,000) | |
Pension [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 6,088,000,000 | 5,489,000,000 | |
Pension [Member] | Level 2 [Member] | US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 950,000,000 | 811,000,000 | |
Pension [Member] | Level 2 [Member] | Municipal Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 64,000,000 | 57,000,000 | |
Pension [Member] | Level 2 [Member] | Debt Security, Government, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 90,000,000 | 98,000,000 | |
Pension [Member] | Level 2 [Member] | Corporate Debt Security, Above Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 3,760,000,000 | 3,523,000,000 | |
Pension [Member] | Level 2 [Member] | Corporate Debt Security, Below Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 868,000,000 | 521,000,000 | |
Pension [Member] | Level 2 [Member] | Common stock: International equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 2 [Member] | Common stock: U.S. equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Pension [Member] | Level 2 [Member] | Other, Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 356,000,000 | 479,000,000 | |
Pension [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 1,493,000,000 | 1,317,000,000 | |
Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 201,000,000 | 213,000,000 | $ 211,000,000 |
Postretirement Benefit Plan [Member] | US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 6,000,000 | 11,000,000 | |
Postretirement Benefit Plan [Member] | Debt Security, Government, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 4,000,000 | 5,000,000 | |
Postretirement Benefit Plan [Member] | Corporate Debt Security, Above Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 55,000,000 | 63,000,000 | |
Postretirement Benefit Plan [Member] | Corporate Debt Security, Below Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 11,000,000 | 9,000,000 | |
Postretirement Benefit Plan [Member] | Other, Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 7,000,000 | 7,000,000 | |
Postretirement Benefit Plan [Member] | U S Large Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 97,000,000 | $ 97,000,000 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | |
Postretirement Benefit Plan [Member] | International Developed Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 25,000,000 | $ 24,000,000 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us_gaap:FairValueMeasuredAtNetAssetValuePerShareMember | |
Postretirement Benefit Plan [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ (4,000,000) | $ (3,000,000) | |
Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 83,000,000 | 95,000,000 | |
Postretirement Benefit Plan [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | Level 1 [Member] | US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | Level 1 [Member] | Debt Security, Government, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | Level 1 [Member] | Corporate Debt Security, Above Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | Level 1 [Member] | Corporate Debt Security, Below Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | Level 1 [Member] | Other, Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 83,000,000 | 95,000,000 | |
Postretirement Benefit Plan [Member] | Level 2 [Member] | US Treasury and Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 6,000,000 | 11,000,000 | |
Postretirement Benefit Plan [Member] | Level 2 [Member] | Debt Security, Government, Non-US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 4,000,000 | 5,000,000 | |
Postretirement Benefit Plan [Member] | Level 2 [Member] | Corporate Debt Security, Above Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 55,000,000 | 63,000,000 | |
Postretirement Benefit Plan [Member] | Level 2 [Member] | Corporate Debt Security, Below Investment Grade [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 11,000,000 | 9,000,000 | |
Postretirement Benefit Plan [Member] | Level 2 [Member] | Other, Net [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 7,000,000 | 7,000,000 | |
Postretirement Benefit Plan [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | 0 | 0 | |
Postretirement Benefit Plan [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, net | $ 122,000,000 | $ 121,000,000 |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 495 |
2022 | 483 |
2023 | 483 |
2024 | 483 |
2025 | 485 |
2026-2030 | 2,437 |
Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 120 |
2022 | 118 |
2023 | 115 |
2024 | 113 |
2025 | 112 |
2026-2030 | $ 563 |
Benefit Plans (Amounts Recorded
Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss | $ (3,274) | $ (2,999) |
Prior service (cost) credit | 9 | 40 |
Deferred income taxes | 845 | 767 |
Amounts recorded in accumulated other comprehensive losses | (2,420) | (2,192) |
Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss | (2,689) | (2,565) |
Prior service (cost) credit | (27) | (27) |
Deferred income taxes | 702 | 670 |
Amounts recorded in accumulated other comprehensive losses | (2,014) | (1,922) |
Postretirement Benefit Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss | (541) | (389) |
Prior service (cost) credit | 41 | 72 |
Deferred income taxes | 132 | 86 |
Amounts recorded in accumulated other comprehensive losses | (368) | (231) |
Postemployment Retirement Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss | (44) | (45) |
Prior service (cost) credit | (5) | (5) |
Deferred income taxes | 11 | 11 |
Amounts recorded in accumulated other comprehensive losses | $ (38) | $ (39) |
Benefit Plans (Movements in Oth
Benefit Plans (Movements in Other Comprehensive Earnings/Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization: | |||
Net loss | $ 163 | $ 184 | $ 263 |
Prior service cost/credit | (25) | (23) | (38) |
Other expense (income): | |||
Net loss | 10 | 16 | 13 |
Prior service cost/credit | 0 | (4) | 3 |
Deferred income taxes | (37) | (44) | (61) |
Amounts reclassified to net earnings as components of net periodic benefit cost | 111 | 129 | 180 |
Other movements during the year: | |||
Net loss | (448) | (203) | (74) |
Prior service cost/credit | (6) | (1) | (77) |
Deferred income taxes | 115 | 51 | 39 |
Other movements | (339) | (153) | (509) |
Total movements in other comprehensive earnings/losses | (228) | (24) | (329) |
Benefit Plans [Member] | |||
Other movements during the year: | |||
Adoption of ASU No. 2018-02 | (397) | ||
Pension [Member] | |||
Amortization: | |||
Net loss | 134 | 159 | 225 |
Prior service cost/credit | 5 | 6 | 4 |
Other expense (income): | |||
Net loss | 10 | 20 | 13 |
Prior service cost/credit | 0 | 1 | 3 |
Deferred income taxes | (37) | (47) | (61) |
Amounts reclassified to net earnings as components of net periodic benefit cost | 112 | 139 | 184 |
Other movements during the year: | |||
Net loss | (268) | (153) | (336) |
Prior service cost/credit | (5) | 0 | (26) |
Deferred income taxes | 69 | 38 | 91 |
Other movements | (204) | (115) | (601) |
Total movements in other comprehensive earnings/losses | (92) | 24 | (417) |
Pension [Member] | Benefit Plans [Member] | |||
Other movements during the year: | |||
Adoption of ASU No. 2018-02 | (330) | ||
Postretirement Benefit Plan [Member] | |||
Amortization: | |||
Net loss | 10 | 5 | 21 |
Prior service cost/credit | (30) | (30) | (42) |
Other expense (income): | |||
Net loss | 0 | 0 | 0 |
Prior service cost/credit | 0 | (5) | 0 |
Deferred income taxes | 5 | 7 | 4 |
Amounts reclassified to net earnings as components of net periodic benefit cost | (15) | (23) | (17) |
Other movements during the year: | |||
Net loss | (162) | (67) | 264 |
Prior service cost/credit | (1) | (1) | (45) |
Deferred income taxes | 41 | 18 | (54) |
Other movements | (122) | (50) | 110 |
Total movements in other comprehensive earnings/losses | (137) | (73) | 93 |
Postretirement Benefit Plan [Member] | Benefit Plans [Member] | |||
Other movements during the year: | |||
Adoption of ASU No. 2018-02 | (55) | ||
Postemployment Retirement Benefits [Member] | |||
Amortization: | |||
Net loss | 19 | 20 | 17 |
Prior service cost/credit | 0 | 1 | 0 |
Other expense (income): | |||
Net loss | 0 | (4) | 0 |
Prior service cost/credit | 0 | 0 | 0 |
Deferred income taxes | (5) | (4) | (4) |
Amounts reclassified to net earnings as components of net periodic benefit cost | 14 | 13 | 13 |
Other movements during the year: | |||
Net loss | (18) | 17 | (2) |
Prior service cost/credit | 0 | 0 | (6) |
Deferred income taxes | 5 | (5) | 2 |
Other movements | (13) | 12 | (18) |
Total movements in other comprehensive earnings/losses | $ 1 | $ 25 | (5) |
Postemployment Retirement Benefits [Member] | Benefit Plans [Member] | |||
Other movements during the year: | |||
Adoption of ASU No. 2018-02 | $ (12) |
Additional Information (Schedul
Additional Information (Schedule of Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development expense | $ 131 | $ 168 | $ 252 |
Advertising expense | 26 | 33 | 37 |
Interest expense | 1,223 | 1,322 | 697 |
Interest income | (14) | (42) | (32) |
Interest and other debt expense, net | $ 1,209 | $ 1,280 | $ 665 |
Additional Information (Sched_2
Additional Information (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discounts [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 0 | $ 0 | $ 0 |
Charged to costs and expenses | 633 | 604 | 620 |
Deductions | (633) | (604) | (620) |
Balance at end of year | 0 | 0 | 0 |
Returned Goods [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 32 | 32 | 40 |
Charged to costs and expenses | 98 | 127 | 97 |
Deductions | (90) | (127) | (105) |
Balance at end of year | 40 | 32 | 32 |
Allowance for Losses on Finance Assets [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 19 | 19 | 23 |
Decrease to allowance | 0 | 0 | (4) |
Balance at end of year | $ 19 | $ 19 | $ 19 |
Contingencies (General Informat
Contingencies (General Information) (Details) | Dec. 31, 2020state |
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) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018case | Dec. 31, 2020claimcaselawsuit | Dec. 31, 2019claim | Dec. 31, 2018claim | |
Individual Smoking and Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 148 | 104 | 100 | |
Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | New Mexico [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 16 | |||
Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | Massachusetts [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | case | 30 | |||
Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | Florida [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | case | 60 | |||
ETS Smoking and Health Case, Flight Attendants [Member] | Pending Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | case | 1,471 | |||
Number of claims dismissed | case | 923 | |||
Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1 | 1 | 1 | |
E-vapor Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1,563 | 101 | 0 | |
Number of class action lawsuits | lawsuit | 27 | |||
E-vapor Cases [Member] | Canada [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of class action lawsuits | lawsuit | 3 | |||
E-vapor Cases [Member] | Pending Individual Lawsuits [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1,468 | |||
E-vapor Cases [Member] | Pending Lawsuits Filed By State Or Local Governments [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 68 | |||
Other Tabacco-Related Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 3 | 4 | 4 | |
Number of inactive cases | case | 1 | |||
Number of cases alleging unfair practices | case | 2 |
Contingencies (Overview of Altr
Contingencies (Overview of Altria and/or PM USA Tobacco-Related Litigation Narrative) (Details) | Jan. 25, 2021claimcase | Jan. 25, 2021caseclaim | Dec. 31, 2020claim | Dec. 31, 2019claim | Dec. 31, 2018claim |
Health Care Cost Recovery Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | claim | 1 | 1 | 1 | ||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | Canada [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | claim | 3 | 3 | |||
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 | 1 | 1 | |||
Number of verdicts returned | 134 | ||||
Number of favorable verdicts | 49 | ||||
Number of unfavorable verdicts | 76 | ||||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of verdicts returned | 69 | ||||
Number of favorable verdicts | 44 | ||||
Number of unfavorable verdicts | 25 | ||||
Number of claims resolved | 20 | ||||
Verdicts reversed, number | 1 | ||||
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 | ||||
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 | 4 | ||||
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) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 195 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Loss Contingency Accrual [Roll Forward] | ||||||||||||
Accrued liability for tobacco and health litigation items at beginning of period | $ 14 | $ 112 | $ 14 | $ 112 | $ 106 | |||||||
Provision related to litigation recorded | $ 7 | $ 34 | $ 18 | $ 24 | $ 29 | $ 3 | $ 28 | $ 17 | ||||
Payments | (88) | (175) | (125) | |||||||||
Accrued liability for tobacco and health litigation items at end of period | 9 | $ 14 | 9 | 14 | 112 | $ 9 | ||||||
Related Interest Costs [Member] | ||||||||||||
Loss Contingency Accrual [Roll Forward] | ||||||||||||
Provision related to litigation recorded | 4 | 5 | 18 | |||||||||
Tobacco and Health Judgment [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Judgments paid (approximately) | 805 | |||||||||||
Litigation settlement interest (approximately) | 218 | |||||||||||
Tobacco and Health Judgment [Member] | Tobacco and Health Litigation [Member] | ||||||||||||
Loss Contingency Accrual [Roll Forward] | ||||||||||||
Provision related to litigation recorded | 79 | $ 72 | $ 113 | |||||||||
Engle Progeny Cases [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Judgments paid (approximately) | 365 | |||||||||||
Litigation settlement interest (approximately) | 56 | |||||||||||
Assets [Member] | Pending Litigation [Member] | PM USA [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Security posted for appeal of judgments | $ 61 | $ 61 | $ 61 |
Contingencies (Non-Engle Progen
Contingencies (Non-Engle Progeny Litigation) (Details) - USD ($) | May 31, 2020 | Feb. 29, 2020 | Sep. 30, 2019 | Aug. 31, 2019 | Oct. 31, 2017 |
Non-Engle Progeny Smoking And Health Case, Principe [Member] | |||||
Loss Contingencies [Line Items] | |||||
Compensatory damages awarded | $ 11,000,000 | ||||
Punitive damages awarded | $ 0 | ||||
Non-Engle Progeny Smoking and Health Case, Greene [Member] | |||||
Loss Contingencies [Line Items] | |||||
Compensatory damages awarded | $ 30,000,000 | $ 10,000,000 | |||
Non-Engle Progeny Smoking and Health Case, Laramie [Member] | |||||
Loss Contingencies [Line Items] | |||||
Compensatory damages awarded | $ 11,000,000 | ||||
Punitive damages awarded | $ 10,000,000 | ||||
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 award, allocation percentage | 75.00% |
Contingencies (Engle Class Acti
Contingencies (Engle Class Action And Engle Progeny Trial Results) (Details) | Jan. 25, 2021USD ($)caseplantiff | Jul. 31, 2006 | Jan. 31, 2008case | Jul. 31, 2000USD ($) |
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, State [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 9,300 | |||
Subsequent Event [Member] | Engle Progeny Cases [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of verdicts returned | 134 | |||
Number of unfavorable verdicts | 76 | |||
Number of claims with unfavorable verdicts pending/reversed | 5 | |||
Number of favorable verdicts | 49 | |||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1,300 | |||
Number of plaintiffs | plantiff | 1,600 | |||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 43 | |||
Subsequent Event [Member] | Engle Progeny Cases, Federal [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 3 | |||
Subsequent Event [Member] | Engle Progeny Cases, Pearson, D Cohen, Collar, Chacon [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Verdicts reversed, number | 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] | ||||
Damages awarded, value | $ | $ 0 | |||
Zero damages verdict modified | 2 | |||
Subsequent Event [Member] | Engle Progeny Cases, Pollari [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 1 | |||
Subsequent Event [Member] | Engle Progeny Cases, Gloger, Rintoul and Duignam [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of favorable verdicts | 3 | |||
Subsequent Event [Member] | Engle Progeny Cases, Freeman [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) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2020USD ($)case | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)case | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | Nov. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Sep. 30, 2018USD ($) | Jul. 31, 2018USD ($) | Nov. 30, 2017USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Provision related to litigation recorded | $ 7 | $ 34 | $ 18 | $ 24 | $ 29 | $ 3 | $ 28 | $ 17 | |||||||||||||||
Pre-tax charges (gain) included in net earning | $ (5) | 3,302 | 142 | 564 | $ 3,686 | $ 5,040 | $ 63 | 764 | |||||||||||||||
PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Pre-tax charges (gain) included in net earning | 10 | 17 | |||||||||||||||||||||
Engle Progeny Cases, Berger [Berger] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | $ 6 | ||||||||||||||||||||||
Provision related to litigation recorded | $ 6 | ||||||||||||||||||||||
Engle Progeny Cases, Berger [Berger] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Punitive damages awarded | $ 21 | ||||||||||||||||||||||
Engle Progeny Cases, Santoro [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||||||||||||
Provision related to litigation recorded | 1 | ||||||||||||||||||||||
Engle Progeny Cases, Santoro [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | 1 | ||||||||||||||||||||||
Punitive damages awarded | $ 1 | ||||||||||||||||||||||
Engle Progeny Cases, Duignan {Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | $ 3 | ||||||||||||||||||||||
Engle Progeny Cases, Duignan {Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Punitive damages awarded | $ 12 | ||||||||||||||||||||||
Engle Progeny Cases, Cuddihee [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | $ 3 | ||||||||||||||||||||||
Engle Progeny Cases, Cuddihee [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||||||||||||
Engle Progeny Cases, Rintoul [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | $ 9 | ||||||||||||||||||||||
Engle Progeny Cases, Rintoul [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Punitive damages awarded | 74 | ||||||||||||||||||||||
Engle Progeny Cases, Gloger [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | 15 | ||||||||||||||||||||||
Engle Progeny Cases, Gloger [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Punitive damages awarded | $ 11 | ||||||||||||||||||||||
Engle Progeny Cases, McCall [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | 1 | ||||||||||||||||||||||
Engle Progeny Cases, McCall [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | 1 | ||||||||||||||||||||||
Punitive damages awarded | 0 | ||||||||||||||||||||||
Engle Progeny Cases, Neff [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | 4 | ||||||||||||||||||||||
Engle Progeny Cases, Neff [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Punitive damages awarded | $ 2 | ||||||||||||||||||||||
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, 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, Sommers [Member] | Pending Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Compensatory damages awarded | $ 1 | ||||||||||||||||||||||
Provision related to litigation recorded | $ 1 | ||||||||||||||||||||||
Damages awarded, value | $ 3 | ||||||||||||||||||||||
Engle Progeny Cases, Sommers [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, 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, 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, Kerrivan [Member] | Settled Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | $ 26 | ||||||||||||||||||||||
Engle Progeny Cases, Landi [Member] | Settled Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | $ 10 | ||||||||||||||||||||||
Engle Progeny Cases, Theis [Member] | Settled Litigation [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | $ 17 | ||||||||||||||||||||||
Engle Progeny Cases, Naugle, Gore, M. Brown, Jordan [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, number of cases with payments a year or more ago | case | 4 | 4 | |||||||||||||||||||||
Engle Progeny Cases, Naugle [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | $ 8 | ||||||||||||||||||||||
Engle Progeny Cases, Gore [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | 2 | ||||||||||||||||||||||
Engle Progeny Cases, M. Brown [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | 9 | ||||||||||||||||||||||
Engle Progeny Cases, Jordan [Member] | PM USA [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Damages awarded, value | $ 4 |
Contingencies (Florida Bond Sta
Contingencies (Florida Bond Statute) (Details) $ in Millions | Jun. 30, 2009USD ($) |
Florida [Member] | Engle Progeny Cases, State [Member] | |
Loss Contingencies [Line Items] | |
Maximum bond for all defendants | $ 200 |
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 | 296 Months Ended | |
Mar. 31, 2019CAD ($)rulingmanufacture | Dec. 31, 2020casemanufacture | Jan. 25, 2021case | |
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 | ||
Amount awarded to other party | $ | $ 13 | ||
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) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 1998USD ($)state | Dec. 31, 2020USD ($)caseclaimmanufacture | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($)claim | Mar. 31, 2019manufacture | |
Health Care Cost Recovery Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | claim | 1 | 1 | 1 | ||
Number of states with settled litigation | state | 46 | ||||
State settlement agreements annual payments | $ 9,400 | ||||
State settlement agreements attorney fees annual cap | $ 500 | ||||
Litigation settlement | $ 4,400 | $ 4,200 | $ 4,200 | ||
Canada [Member] | Smoking and Health Class Actions and Aggregated Claims Litigation [Member] | Canadian Tobacco Manufacturers [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of manufacturers | manufacture | 3 | 3 | |||
Threatened Litigation [Member] | Canada [Member] | Health Care Cost Recovery Actions [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, 2020USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Oct. 31, 2017USD ($)state | Sep. 30, 2013USD ($)state | Nov. 30, 1998state | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($)state | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)stateclaim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)settlement_development | |
Health Care Cost Recovery Actions [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of states with settled litigation | state | 46 | ||||||||||||
Litigation settlement | $ 4,400 | $ 4,200 | $ 4,200 | ||||||||||
PM USA [Member] | Health Care Cost Recovery Actions [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency, reduction to cost of sales | $ 52 | $ 209 | $ 39 | ||||||||||
Amount ordered to be paid from other party | $ 361 | ||||||||||||
Loss contingency, settlement agreement, payment period | 9 years | ||||||||||||
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 | 3 | ||||||||||||
Number of states with settled litigation | state | 38 | ||||||||||||
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 | ||||||||||||
Loss contingency, number of settlement developments | settlement_development | 2 | ||||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2004-2017 [Member] | Settled Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency, number of additional states added | state | 10 | ||||||||||||
Payments received from litigation settlement | $ 47 | $ 121 | $ 68 | $ 248 | |||||||||
Loss contingency, number of additional states extended with settled litigation | state | 35 | ||||||||||||
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] | |||||||||||||
Loss contingency, damages sought, value | $ 13.8 | ||||||||||||
Litigation settlement | $ 4 | ||||||||||||
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 | 313 | ||||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2016 NPM Adjustments [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Estimate of possible gain | 305 | ||||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2017 NPM Adjustments [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Estimate of possible gain | 297 | ||||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2018 NPM Adjustments [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Estimate of possible gain | 340 | ||||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2019 NPM Adjustments [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Estimate of possible gain | 441 | ||||||||||||
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 | $ 317 | ||||||||||||
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 |
Contingencies (Other Disputes U
Contingencies (Other Disputes Under the State Settlement Agreements) (Details) - PM USA [Member] - Other Disputes Under the State Settlement Agreements [Member] - USD ($) $ in Millions | 1 Months Ended | |
Jan. 31, 2021 | Aug. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Amount ordered to be paid from other party | $ 9.8 | |
Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Amount ordered to be paid from other party | $ 32 |
Contingencies (Federal Governme
Contingencies (Federal Government's Lawsuit) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 72 Months Ended | |||||||
Aug. 31, 2006 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||||
Provision related to litigation recorded | $ 7 | $ 34 | $ 18 | $ 24 | $ 29 | $ 3 | $ 28 | $ 17 | ||
Federal Governments Lawsuit [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Disclosure period | 10 years | |||||||||
Implementation of Corrective Communications [Member] | Federal Governments Lawsuit [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Provision related to litigation recorded | $ 36 |
Contingencies (E-vapor Litigati
Contingencies (E-vapor Litigation) (Details) - E-vapor Litigation [Member] - claim | Jan. 25, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1,563 | 101 | 0 | |
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases set for trial | 0 | |||
Pending Class Action Lawsuits [Member] | Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 27 | |||
Pending Individual Lawsuits [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1,468 | |||
Pending Individual Lawsuits [Member] | Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1,631 | |||
Pending Lawsuit Filed By School District [Member] | Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 81 | |||
Pending Lawsuits Filed By State Or Local Governments [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 68 |
Contingencies (Antitrust Litiga
Contingencies (Antitrust Litigation) (Details) - shareholder | Jan. 25, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||||
Loss contingency, number of shareholders filing class action lawsuits | 2 | ||||
Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, number of shareholders filing class action lawsuits | 16 | ||||
JUUL [Member] | |||||
Loss Contingencies [Line Items] | |||||
Equity securities without readily determinable fair value, ownership percentage | 35.00% | 35.00% | 35.00% |
Contingencies (Shareholder Clas
Contingencies (Shareholder Class Action and Shareholder Derivative Lawsuits) (Details) - shareholder | Jan. 25, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number Of Shareholders Filing Derivative Lawsuits | 1 | 1 | 2 | |||
Loss contingency, number of shareholders filing class action lawsuits | 2 | |||||
Subsequent Event [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number Of Shareholders Filing Derivative Lawsuits | 1 | |||||
Loss contingency, number of shareholders filing class action lawsuits | 16 |
Contingencies (Lights_Ultra Lig
Contingencies (Lights/Ultra Lights Cases) (Details) - Subsequent Event [Member] | Jan. 25, 2021courtcase |
Lights [Member] | |
Loss Contingencies [Line Items] | |
Claims not certified, number | case | 23 |
Number of cases pending | court | 2 |
Lights [Member] | PM USA [Member] | |
Loss Contingencies [Line Items] | |
Number of state courts | court | 21 |
Lights Ultra Lights Class Actions [Member] | |
Loss Contingencies [Line Items] | |
Number of cases pending | case | 2 |
Contingencies (UST Litigations
Contingencies (UST Litigations Narrative) (Details) | Jan. 25, 2021claim |
Pending Individual Lawsuits [Member] | Subsequent Event [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 ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Contingent liability related to performance surety bonds | $ 25,000,000 | |
Noncontrolling interests | 40,000,000 | $ 38,000,000 |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Credit line available under the agreement | 49,000,000 | |
Revolving Credit Facility [Member] | Credit Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Credit line available under the agreement | $ 3,000,000,000 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (EPS attributable to Altria Group, Inc.) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenues | $ 6,304 | $ 7,123 | $ 6,367 | $ 6,359 | $ 6,007 | $ 6,856 | $ 6,619 | $ 5,628 | $ 26,153 | $ 25,110 | $ 25,364 |
Gross profit | 3,146 | 3,717 | 3,287 | 2,873 | 3,084 | 3,497 | 3,319 | 2,811 | 13,023 | 12,711 | 12,254 |
Net earnings (losses) | 1,922 | (956) | 1,938 | 1,550 | (1,814) | (2,602) | 1,997 | 1,121 | 4,454 | (1,298) | 6,967 |
Net earnings (losses) attributable to Altria | $ 1,924 | $ (952) | $ 1,943 | $ 1,552 | $ (1,809) | $ (2,600) | $ 1,996 | $ 1,120 | $ 4,467 | $ (1,293) | $ 6,963 |
Basic and diluted earnings (losses) per share attributable to Altria | $ 1.03 | $ (0.51) | $ 1.04 | $ 0.83 | |||||||
Basic earnings (losses) per share attributable to Altria (in usd per share) | $ (0.97) | $ (1.39) | $ 1.07 | $ 0.60 | $ 2.40 | $ (0.70) | $ 3.69 | ||||
Diluted earnings (losses) per share attributable to Altria (in usd per share) | $ (1) | $ (1.39) | $ 1.07 | $ 0.60 | $ 2.40 | $ (0.70) | $ 3.68 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) (Schedule of Pre-tax Charges or (Gains) Included in Net Earnings Attributable to Altria Group, Inc.) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Line Items] | |||||||||||
Impairment of JUUL equity securities | $ 0 | $ 2,600 | $ 0 | $ 0 | $ 4,100 | $ 4,500 | $ 0 | $ 0 | $ 2,600 | $ 8,600 | $ 0 |
Tobacco and health litigation items, including accrued interest | 7 | 34 | 18 | 24 | 29 | 3 | 28 | 17 | |||
Asset impairment, exit, implementation and acquisition-related costs | 16 | 12 | 8 | 395 | 116 | 11 | 45 | 159 | |||
PMCC residual value adjustments | 91 | 0 | 34 | 0 | |||||||
Cost of sales | 7,818 | 7,085 | 7,373 | ||||||||
Pre-tax charges (gains) included in net earnings | (5) | 3,302 | 142 | 564 | 3,686 | 5,040 | 63 | 764 | |||
COVID-19 [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Cost of sales | 0 | 0 | 50 | 0 | 50 | ||||||
ABI [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Investment special items | 74 | 513 | 120 | 56 | (394) | (23) | (129) | 163 | |||
Cronos [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Investment special items | (93) | 143 | (88) | 89 | (165) | 549 | $ 119 | $ 425 | |||
JUUL [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Impairment of JUUL equity securities | $ 4,100 | $ 4,500 | 2,600 | 8,600 | |||||||
JUUL changes in fair value | $ (100) | $ 0 | $ 0 | $ 0 | $ (100) | $ 0 | $ 0 |