Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 18, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 1,792,172,618 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000764180 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock, $0.33 1/3 par value [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.33 1/3 par value | |
Trading Symbol | MO | |
Security Exchange Name | NYSE | |
1.000% Notes due 2023 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2023 | |
Trading Symbol | MO23A | |
Security Exchange Name | NYSE | |
1.700% Notes due 2025 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.700% Notes due 2025 | |
Trading Symbol | MO25 | |
Security Exchange Name | NYSE | |
2.200% Notes due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.200% Notes due 2027 | |
Trading Symbol | MO27 | |
Security Exchange Name | NYSE | |
3.125% Notes due 2031 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.125% Notes due 2031 | |
Trading Symbol | MO31 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 2,483 | $ 4,544 |
Receivables | 52 | 47 |
Inventories: | ||
Leaf tobacco | 609 | 744 |
Other raw materials | 189 | 166 |
Work in process | 27 | 23 |
Finished product | 281 | 261 |
Inventory, net | 1,106 | 1,194 |
Other current assets | 379 | 298 |
Total current assets | 4,020 | 6,083 |
Property, plant and equipment, at cost | 4,409 | 4,432 |
Less accumulated depreciation | 2,822 | 2,879 |
Property, plant and equipment, net | 1,587 | 1,553 |
Goodwill | 5,177 | 5,177 |
Other intangible assets, net | 12,353 | 12,306 |
Investments in equity securities ($351 million and $1,720 million at September 30, 2022 and December 31, 2021, respectively, measured at fair value) | 9,814 | 13,481 |
Other assets | 1,002 | 923 |
Total Assets | 33,953 | 39,523 |
Liabilities | ||
Current portion of long-term debt | 1,443 | 1,105 |
Accounts payable | 417 | 449 |
Accrued liabilities: | ||
Marketing | 691 | 664 |
Settlement charges | 2,731 | 3,349 |
Other | 1,122 | 1,365 |
Dividends payable | 1,693 | 1,647 |
Total current liabilities | 8,097 | 8,579 |
Long-term debt | 24,848 | 26,939 |
Deferred income taxes | 3,330 | 3,692 |
Accrued pension costs | 196 | 200 |
Accrued postretirement health care costs | 1,436 | 1,436 |
Other liabilities | 278 | 283 |
Total liabilities | 38,185 | 41,129 |
Contingencies (Note 11) | ||
Stockholders’ Equity (Deficit) | ||
Common stock, par value $0.33 1/3 per share (2,805,961,317 shares issued) | 935 | 935 |
Additional paid-in capital | 5,873 | 5,857 |
Earnings reinvested in the business | 28,785 | 30,664 |
Accumulated other comprehensive losses | (2,383) | (3,056) |
Cost of repurchased stock (1,012,146,048 shares at September 30, 2022 and 982,785,699 shares at December 31, 2021) | (37,442) | (36,006) |
Total stockholders’ equity (deficit) | (4,232) | (1,606) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 33,953 | $ 39,523 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Stockholders’ Equity (Deficit) | ||
Investments, fair value disclosure | $ 351 | $ 1,720 |
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 |
Shares repurchased (in shares) | 1,012,146,048 | 982,785,699 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Losses) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net revenues | $ 6,550 | $ 6,786 | $ 18,985 | $ 19,758 |
Cost of sales | 1,715 | 1,858 | 4,869 | 5,348 |
Excise taxes on products | 1,138 | 1,255 | 3,380 | 3,733 |
Gross profit | 3,697 | 3,673 | 10,736 | 10,677 |
Marketing, administration and research costs | 585 | 722 | 1,635 | 1,850 |
Operating income | 3,112 | 2,951 | 9,101 | 8,827 |
Interest and other debt expense, net | 271 | 266 | 832 | 869 |
Loss on early extinguishment of debt | 0 | 0 | 0 | 649 |
Net periodic benefit income, excluding service cost | (44) | (63) | (137) | (152) |
(Income) losses from investments in equity securities | 2,478 | 5,915 | 3,707 | 5,789 |
(Gain) loss on Cronos-related financial instruments | 0 | 135 | 14 | 128 |
Earnings (losses) before income taxes | 407 | (3,302) | 4,685 | 1,544 |
Provision (benefit) for income taxes | 183 | (582) | 1,611 | 693 |
Net earnings (losses) | 224 | (2,720) | 3,074 | 851 |
Net (earnings) losses attributable to noncontrolling interests | 0 | (2) | 0 | 0 |
Net earnings (losses) attributable to Altria | $ 224 | $ (2,722) | $ 3,074 | $ 851 |
Per share data: | ||||
Basic earnings (losses) per share attributable to Altria (in usd per share) | $ 0.12 | $ (1.48) | $ 1.69 | $ 0.46 |
Diluted earnings (losses) per share attributable to Altria (in usd per share) | $ 0.12 | $ (1.48) | $ 1.69 | $ 0.46 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings (Losses) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (losses) | $ 224 | $ (2,720) | $ 3,074 | $ 851 |
Other comprehensive earnings (losses), net of deferred income taxes: | ||||
Benefit plans | 17 | 6 | 48 | 383 |
ABI | (6) | 161 | 637 | 495 |
Currency translation adjustments and other | (17) | 5 | (12) | 33 |
Other comprehensive earnings (losses), net of deferred income taxes | (6) | 172 | 673 | 911 |
Comprehensive earnings (losses) | 218 | (2,548) | 3,747 | 1,762 |
Comprehensive (earnings) losses attributable to noncontrolling interests | 0 | (2) | 0 | 0 |
Comprehensive earnings (losses) attributable to Altria | $ 218 | $ (2,550) | $ 3,747 | $ 1,762 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - 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, 2020 | $ 2,925 | $ 935 | $ 5,910 | $ 34,679 | $ (4,341) | $ (34,344) | $ 86 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | 847 | 851 | (4) | |||||
Other comprehensive earnings (losses), net of deferred income taxes | 911 | 911 | ||||||
Stock award activity | 26 | 13 | 13 | |||||
Cash dividends declared | (4,845) | (4,845) | ||||||
Repurchases of common stock | (972) | (972) | ||||||
Other | [1] | (157) | (77) | (80) | ||||
Ending balance at Sep. 30, 2021 | (1,265) | 935 | 5,846 | 30,685 | (3,430) | (35,303) | 2 | |
Beginning balance at Jun. 30, 2021 | 3,259 | 935 | 5,840 | 35,065 | (3,602) | (34,981) | 2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | (2,722) | (2,722) | ||||||
Other comprehensive earnings (losses), net of deferred income taxes | 172 | 172 | ||||||
Stock award activity | 6 | 6 | ||||||
Cash dividends declared | (1,658) | (1,658) | ||||||
Repurchases of common stock | (322) | (322) | ||||||
Ending balance at Sep. 30, 2021 | (1,265) | 935 | 5,846 | 30,685 | (3,430) | (35,303) | $ 2 | |
Beginning balance at Dec. 31, 2021 | (1,606) | 935 | 5,857 | 30,664 | (3,056) | (36,006) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | 3,074 | 3,074 | ||||||
Other comprehensive earnings (losses), net of deferred income taxes | 673 | 673 | ||||||
Stock award activity | 31 | 16 | 15 | |||||
Cash dividends declared | (4,953) | (4,953) | ||||||
Repurchases of common stock | (1,451) | (1,451) | ||||||
Ending balance at Sep. 30, 2022 | (4,232) | 935 | 5,873 | 28,785 | (2,383) | (37,442) | ||
Beginning balance at Jun. 30, 2022 | (2,403) | 935 | 5,861 | 30,252 | (2,377) | (37,074) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (losses) | 224 | 224 | ||||||
Other comprehensive earnings (losses), net of deferred income taxes | (6) | (6) | ||||||
Stock award activity | 12 | 12 | ||||||
Cash dividends declared | (1,691) | (1,691) | ||||||
Repurchases of common stock | (368) | (368) | ||||||
Ending balance at Sep. 30, 2022 | $ (4,232) | $ 935 | $ 5,873 | $ 28,785 | $ (2,383) | $ (37,442) | ||
[1]Represents the purchase of the remaining noncontrolling interests in Helix in the second quarter of 2021. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared (usd per share) | $ 0.94 | $ 0.94 | $ 0.90 | $ 0.90 | $ 2.74 | $ 2.62 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Cash Provided by (Used in) Operating Activities | |||
Net earnings (losses) | $ 224 | $ 3,074 | $ 851 |
Adjustments to reconcile net earnings (losses) to operating cash flows: | |||
Depreciation and amortization | 163 | 190 | |
Deferred income tax provision (benefit) | (550) | (1,180) | |
(Income) losses from investments in equity securities | 2,478 | 3,707 | 5,789 |
Dividends from ABI | 104 | 119 | |
(Gain) loss on Cronos-related financial instruments | 0 | 14 | 128 |
Loss on early extinguishment of debt | 0 | 0 | 649 |
Cash effects of changes: | |||
Receivables | (5) | (7) | |
Inventories | 88 | 118 | |
Accounts payable | (27) | 3 | |
Income taxes | 49 | (200) | |
Accrued liabilities and other current assets | (382) | (104) | |
Accrued settlement charges | (618) | (568) | |
Pension plan contributions | (11) | (23) | |
Pension and postretirement (income) cost, net | (110) | (127) | |
Other, net | 141 | 104 | |
Net cash provided by (used in) operating activities | 5,637 | 5,742 | |
Cash Provided by (Used in) Investing Activities | |||
Capital expenditures | (147) | (102) | |
Other, net | (68) | 60 | |
Net cash provided by (used in) investing activities | (215) | (42) | |
Cash Provided by (Used in) Financing Activities | |||
Long-term debt issued | 0 | 5,472 | |
Long-term debt repaid | (1,105) | (6,542) | |
Repurchases of common stock | (1,451) | (972) | |
Dividends paid on common stock | (4,908) | (4,787) | |
Premiums and fees related to early extinguishment of debt | 0 | (623) | |
Other, net | (12) | (216) | |
Net cash provided by (used in) financing activities | (7,476) | (7,668) | |
Cash, cash equivalents and restricted cash: | |||
Increase (decrease) | (2,054) | (1,968) | |
Balance at beginning of period | 4,594 | 5,006 | |
Balance at end of period | 2,540 | 2,540 | 3,038 |
Cash and cash equivalents | 2,483 | 2,483 | |
Restricted cash included in other current assets | 15 | 15 | |
Restricted cash included in other assets | 42 | 42 | |
Cash, cash equivalents and restricted cash | $ 2,540 | $ 2,540 | $ 3,038 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation When used in these notes, the terms “ Altria,” “we,” “us” and “our” refer to either (i) Altria Group, Inc. and its consolidated subsidiaries or (ii) Altria Group, Inc. only and not its consolidated subsidiaries, as appropriate in the context. ▪ Background: At September 30, 2022, our wholly owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco and is a wholly owned subsidiary of PM USA; UST LLC (“UST”), which through its wholly owned subsidiary U.S. Smokeless Tobacco Company LLC (“USSTC”), is engaged in the manufacture and sale of moist smokeless tobacco products (“MST”) and snus products; Helix Innovations LLC (“Helix”), which operates in the United States and Canada, and Helix Innovations GmbH and its affiliates (“Helix ROW”), which operate internationally in the rest-of-world, are engaged in the manufacture and sale of oral nicotine pouches; and Philip Morris Capital Corporation, which has one leveraged lease remaining. Other wholly owned subsidiaries included Altria Group Distribution Company, which provides sales and distribution services to our domestic tobacco operating companies, and Altria Client Services LLC (“ALCS”), which provides various support services to our companies in areas such as legal, regulatory, consumer engagement, finance, human resources and external affairs. Altria’s access to the operating cash flows of our wholly owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by our subsidiaries. At September 30, 2022, our 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. On October 1, 2021, UST sold its subsidiary, International Wine & Spirits Ltd., which included Ste. Michelle Wine Estates Ltd. (“Ste. Michelle”). At September 30, 2022, we had investments in the following equity securities: Anheuser-Busch InBev SA/NV (“ABI”), Cronos Group Inc. (“Cronos”) and JUUL Labs, Inc. (“JUUL”). We account for our investments in ABI and Cronos under the equity method of accounting using a one-quarter lag. We account for our investment in JUUL at fair value. For further discussion of our investments in equity securities, see Note 3. Investments in Equity Securities . ▪ Dividends and Share Repurchases: In August 2022, our Board of Directors (“Board of Directors” or “Board”) approved a 4.4% increase in the quarterly dividend rate to $0.94 per share of our common stock versus the previous rate of $0.90 per share. The current annualized dividend rate is $3.76. Future dividend payments remain subject to the discretion of our Board. In January 2021, our Board of Directors authorized a $2.0 billion share repurchase program that it expanded to $3.5 billion in October 2021 (as expanded, the “January 2021 share repurchase program”). At September 30, 2022, we had $374 million remaining in the January 2021 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 our Board. Our share repurchase activity was as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions, except per share data) 2022 2021 2022 2021 Total number of shares repurchased 29.9 20.2 8.5 6.7 Aggregate cost of shares repurchased $ 1,451 $ 972 $ 368 $ 322 Average price per share of shares repurchased $ 48.60 $ 48.17 $ 43.68 $ 48.35 ▪ Basis of Presentation: Our interim condensed consolidated financial statements are unaudited. Our management believes that all adjustments necessary for a fair statement of the interim results presented have been reflected in our interim condensed consolidated financial statements. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year. These statements should be read in conjunction with our audited consolidated financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2021. On January 1, 2022, we adopted Accounting Standards Update (“ASU”) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”). This 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. Our adoption of ASU No. 2020-06 did not have a material impact on our condensed consolidated financial statements. For a description of issued accounting guidance applicable to, but not yet adopted by, us, see Note 12. New Accounting Guidance Not Yet Adopted . |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers We disaggregate net revenues based on product type. For further discussion, see Note 8. Segment Reporting . We calculate substantially all cash discounts, offered to customers for prompt payment, as a flat rate per unit based on agreed-upon payment terms. Prior to the first quarter of 2021 for USSTC and the third quarter of 2021 for PM USA, cash discounts were calculated as a percentage of the list price based on historical experience and agreed-upon payment terms. We record receivables net of the cash discounts on our condensed consolidated balance sheets. We record payments received in advance of product shipment as deferred revenue. These payments are included in other accrued liabilities on our condensed consolidated balance sheets until control of such products is obtained by the customer. Deferred revenue was $310 million and $287 million at September 30, 2022 and December 31, 2021, respectively. When cash is received in advance of product shipment, we satisfy our performance obligations within three days of receiving payment. At September 30, 2022 and December 31, 2021, there were no differences between amounts recorded as deferred revenue and amounts subsequently recognized as revenue. Receivables were $52 million and $47 million at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, there were no expected differences between amounts recorded and subsequently received, and we did not record an allowance for credit losses against these receivables. We record an allowance for returned goods, which is included in other accrued liabilities on our condensed consolidated balance sheets. It is USSTC’s policy to accept authorized sales returns from its customers for products that have passed the freshness date printed on product packaging due to the limited shelf life of USSTC’s MST and snus products. We 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. We 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 our condensed consolidated financial statements. All returned goods are destroyed upon return and not included in inventory. Consequently, we do not record an asset for USSTC’s right to recover goods from customers upon return. Sales incentives include variable payments related to goods sold. We 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- We make price promotion payments, substantially all of which are made to our retail partners, to incent the promotion of certain product offerings in select geographic areas. Wholesale and retail participation payments- We make payments to our wholesale and retail partners to incent merchandising and sharing of sales data in accordance with our 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 our condensed consolidated financial statements. |
Investments in Equity Securitie
Investments in Equity Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Investments in Equity Securities | Investments in Equity Securities The carrying amount of our investments consisted of the following: (in millions) September 30, 2022 December 31, 2021 ABI $ 9,048 $ 11,144 JUUL 350 1,705 Cronos (1) 416 632 Total $ 9,814 $ 13,481 (1) Our investment in Cronos at September 30, 2022 and December 31, 2021 consisted of our equity method investment in Cronos of $415 million and $617 million, respectively, and also included the Cronos warrant and the Fixed-price Preemptive Rights, which are measured at fair value (collectively, “Investment in Cronos”). See below for further discussion. (Income) losses from investments in equity securities consisted of the following: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 ABI (1) $ 2,155 $ 5,644 $ 2,367 $ 6,036 Cronos (1) 197 145 11 (21) (Income) losses from investments under equity method of accounting 2,352 5,789 $ 2,378 $ 6,015 JUUL (2) 1,355 — 100 (100) (Income) losses from investments in equity securities $ 3,707 $ 5,789 $ 2,478 $ 5,915 (1) Includes our share of amounts recorded by our investees and additional adjustments, if required, related to (i) the conversion from international financial reporting standards to United States generally accepted accounting principles (“ GAAP”) and (ii) adjustments to our investment required under the equity method of accounting. (2) Investment in JUUL is accounted for as an investment in an equity security measured at fair value. See below for further discussion of the change from equity method of accounting in the third quarter of 2022. Investment in ABI At September 30, 2022, we had an approximate 10% ownership interest in ABI, consisting of 185 million restricted shares of ABI (the “Restricted Shares”) and 12 million ordinary shares of ABI. The Restricted Shares: ▪ are unlisted and not admitted to trading on any stock exchange; ▪ are convertible by us into ordinary shares of ABI on a one-for-one basis; ▪ rank equally with ordinary shares of ABI with regards to dividends and voting rights; and ▪ have director nomination rights with respect to ABI. The Restricted Shares were subject to a five-year lock-up period that ended October 10, 2021. As of this filing, we have not elected to convert our Restricted Shares into ordinary shares of ABI. We account for our investment in ABI under the equity method of accounting because we have 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, we participate in ABI’s policy making processes. We report our share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for us to record them in the concurrent period. The fair value of our 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. We can convert the Restricted Shares to ordinary shares at our discretion. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share. At December 31, 2021, the fair value of our equity investment in ABI was $11.9 billion (carrying value of $11.1 billion), which exceeded its carrying value by $0.8 billion or approximately 7%. In May 2022, the fair value of our equity investment in ABI declined below its carrying value and has not recovered. At June 30, 2022, the fair value of our equity investment in ABI was below its carrying value by $1.1 billion or approximately 9%. Accounting guidance requires the evaluation of the following factors when determining if the decline in fair value is other than temporary: (i) the duration and magnitude of the fair value decline; (ii) the financial condition and near-term prospects of the investee; and (iii) the investor’s intent and ability to hold its equity investment until recovery. In preparing our financial statements for the period ended June 30, 2022, we evaluated these factors and concluded that the decline in fair value of our equity investment in ABI at June 30, 2022 below its carrying value was temporary and, therefore, no impairment was recorded at that time. In preparing our financial statements for the period ended September 30, 2022, we considered the same accounting guidance described above to determine if the decline in fair value is other than temporary. We evaluated the factors related to the fair value decline, including the macroeconomic and geopolitical factors that have significantly impacted certain foreign exchange rates and global equity markets. We concluded that the decline in fair value of our equity investment in ABI at September 30, 2022 was other than temporary as we now anticipate that the full recovery to the carrying value will take longer than previously expected. As a result, we recorded a non-cash, pre-tax impairment charge of $2.5 billion for the nine and three months ended September 30, 2022, which was recorded to (income) losses from investments in equity securities in our condensed consolidated statements of earnings (losses). This impairment charge reflects the difference between the fair value of our equity investment in ABI using ABI’s share price at September 30, 2022 and the carrying value of our equity investment in ABI at September 30, 2022. At September 30, 2022, prior to recording the impairment charge, the fair value of our equity investment in ABI was below its carrying value by approximately 22%. After recording the impairment charge, each of the fair value and carrying value of our equity investment in ABI at September 30, 2022 was $9.0 billion. At September 30, 2022, the carrying value of our equity investment in ABI exceeded its share of ABI’s net assets attributable to equity holders of ABI by approximately $2.5 billion. Substantially all of this difference is comprised of goodwill and other indefinite-lived intangible assets (consisting primarily of trademarks). At September 30, 2021, the fair value of our equity investment in ABI had declined below its carrying value by $6.2 billion. We considered the same accounting guidance described above to determine if the decline in fair value was other than temporary. In preparing our financial statements for the period ended September 30, 2021, we concluded that the decline in fair value of our equity investment in ABI at September 30, 2021 was other than temporary. As a result, we recorded a non-cash, pre-tax impairment charge of $6.2 billion for the nine and three months ended September 30, 2021, which was recorded to (income) losses from investments in equity securities in our condensed consolidated statements of earnings (losses). This impairment charge reflected the difference between the fair value of our equity investment in ABI using ABI’s share price at September 30, 2021 and the carrying value of our equity investment in ABI at September 30, 2021. Investment in JUUL In December 2018, we made an investment in JUUL for $12.8 billion and received a 35% economic interest in JUUL through non-voting shares, which were converted at our election into voting shares in November 2020 (“Share Conversion”), and a security convertible into additional non-voting or voting shares, as applicable, upon settlement or exercise of certain JUUL convertible securities (the “JUUL Transaction”). At September 30, 2022, we had a 35% economic ownership interest in JUUL, consisting of 42 million voting shares. We are subject to a standstill restriction under which we may not acquire additional JUUL shares above our 35% interest and agreed not to sell or transfer any of our JUUL shares until December 20, 2024. Furthermore, at the time of the investment, we agreed to non-competition obligations generally requiring that we participate in the e-vapor business only through JUUL. In January 2020, we amended certain JUUL Transaction agreements and entered into a new cooperation agreement. One of the provisions was the option to be released from our non-compete obligation under certain circumstances, including if the carrying value of our investment in JUUL was not more than 10% of its initial carrying value of $12.8 billion. At June 30, 2022, the carrying value of our investment in JUUL was $450 million, which was less than 10% of our initial carrying value of $12.8 billion. As a result, in September 2022, we exercised our option to be released from our JUUL non-competition obligations, resulting in (i) the permanent termination of our non-competition obligations to JUUL, (ii) the loss of our JUUL board designation rights (other than the right to appoint one independent director so long as our ownership continues to be at least 10%), our preemptive rights, our consent rights and certain other rights with respect to our investment in JUUL and (iii) the conversion of our JUUL shares to single vote common stock, significantly reducing our voting power. We do not currently intend to exercise our remaining governance rights or to vote our JUUL shares other than as a passive investor. Additionally, as part of the amendment to certain JUUL Transaction agreements in January 2020, we agreed not to 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 us and JUUL with respect to certain litigation in which we and JUUL are both defendants against third-party plaintiffs. In April 2020, the U.S. Federal Trade Commission (“FTC”) issued an administrative complaint challenging our investment in JUUL. In February 2022, the administrative law judge dismissed the FTC’s complaint. FTC complaint counsel appealed that decision to the FTC, which appeal remains pending. For further discussion, see Note 11. Contingencies - Antitrust Litigation . In June 2022, the U.S. Food and Drug Administration (“FDA”) issued marketing denial orders (“MDOs”) to JUUL ordering all of JUUL’s products currently marketed in the United States off the market. In July 2022, the FDA administratively stayed the MDOs on a temporary basis, citing its determination that there are scientific issues unique to the JUUL pre-market tobacco applications that warrant additional review. This administrative stay temporarily suspends the MDOs and JUUL’s products currently remain on the market. Following Share Conversion in the fourth quarter of 2020, we elected to account for our equity method investment in JUUL under the fair value option. In making this election, we believed measuring our investment at fair value provided quarterly transparency to investors as to the fair market value of our investment in JUUL, given the changes and volatility in the e-vapor category since our initial investment, as well as the lack of publicly available information regarding JUUL’s business or a market-derived valuation. As a result of our loss of certain rights due to our exercise of our option to be released from our JUUL non-competition obligations in the third quarter of 2022, we no longer have the ability to exercise significant influence over the operating and financial policies of JUUL. Therefore, we are no longer able to account for our investment in JUUL as an equity method investment. As of September 30, 2022, we accounted for our investment in JUUL as an investment in an equity security. We will continue to measure our investment in JUUL at fair value, in accordance with GAAP. Our condensed consolidated statements of earnings (losses) include any cash dividends received from our investment in JUUL and any changes in the estimated fair value of our investment, which is calculated quarterly. We use an income approach to estimate the fair value of our investment in JUUL. The income approach reflects the discounting of future cash flows for the United States 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. In determining the estimated fair value of our investment in JUUL, at September 30, 2022 and December 31, 2021, we made certain judgments, estimates and assumptions, the most significant of which were likelihood of certain potential regulatory and liquidity outcomes, 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, we made judgments regarding the (i) likelihood of certain potential regulatory actions impacting the e-vapor category and specifically whether the FDA will ultimately authorize JUUL’s products, which have received MDOs and are now under additional administrative review; (ii) likelihood of JUUL maintaining adequate liquidity to fund projected cash needs, the absence of which could result in JUUL seeking protection under bankruptcy or other insolvency laws; (iii) risk created by the number and types of legal cases pending against JUUL; (iv) expectations for the future state of the e-vapor category, including competitive dynamics; and (v) timing of international expansion plans. Due to these uncertainties, our future cash flow projections of JUUL are based on a range of scenarios that consider certain potential regulatory, liquidity and market outcomes. The following table provides a reconciliation of the beginning and ending balance of our investment in JUUL, which is classified in Level 3 of the fair value hierarchy: Investment (in millions) Balance Balance at December 31, 2020 $ 1,705 Unrealized gains (losses) included in (income) losses from investments in equity securities — Balance at December 31, 2021 $ 1,705 Unrealized gains (losses) included in (income) losses from investments in equity securities (1,355) Balance at September 30, 2022 $ 350 For the nine months ended September 30, 2022, we recorded non-cash, pre-tax unrealized losses of $1,355 million as a result of changes in the estimated fair value of our investment in JUUL. The decrease in the estimated fair value was primarily driven by (i) a decrease in the likelihood of a favorable outcome from the FDA for JUUL’s products that are currently marketed in the United States, which have received MDOs and are now under additional administrative review, (ii) a decrease in the likelihood of JUUL maintaining adequate liquidity to fund projected cash needs, which could result in JUUL seeking protection under bankruptcy or other insolvency law, (iii) projections of higher operating expenses resulting in lower long-term operating margins and (iv) an increase in the discount rate due to changes in market factors, partially offset by the effect of passage of time on the projected cash flows. For the three months ended September 30, 2022, we recorded a non-cash, pre-tax unrealized loss of $100 million as a result of changes in the estimated fair value of our investment in JUUL. The decrease in the estimated fair value was primarily driven by an increase in the discount rate due to changes in market factors, partially offset by the effect of passage of time on the projected cash flows. For the three months ended September 30, 2021, we recorded a non-cash, pre-tax unrealized gain of $100 million as a result of changes in the estimated fair value of our investment in JUUL. There were no material changes to the significant assumptions used in the valuations, as described above, during the nine and three months ended September 30, 2021, compared to the assumptions used for the December 31, 2020 valuation. Investment in Cronos At September 30, 2022, we had a 41.4% ownership interest in Cronos, consisting of 156.6 million shares, which we account for under the equity method of accounting. We report our share of Cronos’s results using a one-quarter lag because Cronos’s results are not available in time for us to record them in the concurrent period. The fair value of our 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 and carrying value of our equity method investment in Cronos at December 31, 2021 was $617 million. In the second quarter of 2022, the fair value of our equity method investment in Cronos declined below its carrying value and had not recovered as of June 30, 2022. Accounting guidance requires the evaluation of the following factors when determining if the decline in fair value is other than temporary: (i) the duration and magnitude of the fair value decline; (ii) the financial condition and near-term prospects of the investee; and (iii) the investor’s intent and ability to hold its equity method investment until recovery. In preparing our financial statements for the period ended June 30, 2022, we evaluated these factors and concluded that the decline in fair value of our equity investment in Cronos below its carrying value at June 30, 2022 was other than temporary. As a result, we recorded a non-cash, pre-tax impairment charge of $107 million in the second quarter of 2022, which was recorded to (income) losses from investments in equity securities in our condensed consolidated statements of earnings (losses). The impairment charge reflects the difference between the fair value of our equity method investment in Cronos using Cronos’s share price and the Canadian dollar (“CAD”) to U.S. dollar exchange rate at June 30, 2022 and the carrying value of our equity method investment in Cronos at June 30, 2022. At June 30, 2022, prior to recording the impairment charge, the fair value of our equity method investment in Cronos was less than its carrying value by approximately 20%. After recording the impairment charge, each of the fair value and carrying value of our equity method investment in Cronos at June 30, 2022 was $437 million. At September 30, 2022, the fair value of our equity method investment in Cronos exceeded its carrying value by $22 million or approximately 5%. As part of our Investment in Cronos, at September 30, 2022, we also owned: ▪ anti-dilution protections to purchase Cronos common shares, exercisable each quarter upon dilution, to maintain our ownership percentage. Certain of the anti-dilution protections provide us the ability to purchase additional Cronos common shares at a per share exercise price of CAD $16.25 upon the occurrence of specified events (“Fixed-price Preemptive Rights”). Based on our assumptions as of September 30, 2022, we estimate the Fixed-price Preemptive Rights allows us to purchase up to an additional approximately 8 million common shares of Cronos; and ▪ a warrant providing us the ability to purchase an additional approximate 10% of common shares of Cronos (approximately 84 million common shares at September 30, 2022) at a per share exercise price of CAD $19.00, which expires on March 8, 2023. If exercised in full, the exercise prices for the warrant and Fixed-price Preemptive Rights would be approximately CAD $1.6 billion and CAD $0.1 billion, respectively (approximately U.S. dollar $1.2 billion and $0.1 billion, respectively, based on the CAD to U.S. dollar exchange rate on October 24, 2022). At September 30, 2022, upon full exercise of the Fixed-price Preemptive Rights, to the extent such rights become available, and the warrant, we would own approximately 52% of the outstanding common shares of Cronos. The Fixed-price Preemptive Rights and Cronos warrant 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). We elect to record the gross assets and liabilities of derivative financial instruments executed with the same counterparty on our condensed consolidated balance sheets in investments in equity securities. We record in our condensed 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. We recorded non-cash, pre-tax unrealized (gains) losses, representing the changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant, as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Fixed-price Preemptive Rights $ 1 $ 21 $ — $ 17 Cronos warrant 13 107 — 118 Total $ 14 $ 128 $ — $ 135 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We enter into derivative financial instruments to mitigate the potential impact of certain market risks, including foreign currency exchange rate risk. We use various types of derivative financial instruments, including forward contracts, options and swaps. We do not enter into or hold derivative financial instruments for trading or speculative purposes. Our investment in ABI, whose functional currency is the Euro, exposes us to foreign currency exchange risk on the carrying value of our investment. To manage this risk, we may designate 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 our investment in ABI. In May 2021, all outstanding foreign currency contracts matured and, at September 30, 2022 and December 31, 2021, we had no outstanding foreign currency contracts. When we have foreign currency contracts in effect, counterparties are domestic and international financial institutions. Under these contracts, we are exposed to potential losses in the event of non-performance by these counterparties. We manage our credit risk by entering into transactions with counterparties that have investment grade credit ratings, limiting the amount of exposure we have with each counterparty and monitoring the financial condition of each counterparty. The counterparty agreements contain provisions that require us to maintain an investment grade credit rating. In the event our credit rating falls below investment grade, counterparties to our foreign currency contracts can require us to post collateral. The following table provides the aggregate carrying value and fair value of our total long-term debt: (in millions) September 30, 2022 December 31, 2021 Carrying value $ 26,291 $ 28,044 Fair value 21,614 30,459 Foreign currency denominated debt included in long-term debt above: Carrying value 4,156 4,817 Fair value 3,780 5,114 Our estimate of the fair value of our 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 decrease in the fair value of our long-term debt was primarily driven by (i) rising interest rates in 2022, (ii) the August 2022 $1.1 billion repayment at maturity of senior unsecured notes and (iii) changes in Euro denominated debt resulting from the strengthening of the U.S. dollar versus the Euro during the first nine months of 2022. Net Investment Hedging The pre-tax effects of our net investment hedges on accumulated other comprehensive losses and our condensed consolidated statements of earnings (losses) were as follows: (Gain) Loss Recognized in Accumulated Other Comprehensive Losses (Gain) Loss Recognized in (Gain) Loss Recognized in Accumulated Other Comprehensive Losses For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 2022 2021 Foreign currency contracts $ — $ (16) $ — $ (7) $ — $ — Foreign currency denominated debt (664) (270) — — (289) (118) Total $ (664) $ (286) $ — $ (7) $ (289) $ (118) We recognized 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 U.S. dollar exchange rate in accumulated other comprehensive losses related to ABI. We recognized gains on the foreign currency contracts arising from components excluded from effectiveness testing in interest and other debt expense, net in our condensed consolidated statements of earnings (losses) based on an amortization approach. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Components of Net Periodic Benefit (Income) Cost Net periodic benefit (income) cost consisted of the following: Pension Postretirement Pension Postretirement For the Nine Months Ended For the Three Months Ended (in millions) 2022 2021 2022 2021 2022 2021 2022 2021 Service cost $ 48 $ 51 $ 17 $ 15 $ 16 $ 17 $ 7 $ 5 Interest cost 155 139 31 29 51 46 11 8 Expected return on plan assets (370) (393) (10) (10) (123) (131) (4) (2) Amortization: Net loss 72 99 14 16 24 33 6 2 Prior service cost (credit) 5 3 (34) (35) 2 1 (11) (20) Net periodic benefit (income) cost $ (90) $ (101) $ 18 $ 15 $ (30) $ (34) $ 9 $ (7) Employer Contributions We make contributions to our pension plans to the extent that the contributions are tax deductible and pays benefits that relate to plans for salaried employees that cannot be funded under Internal Revenue Service regulations. We made employer contributions of $11 million to our pension plans and did not make any contributions to our postretirement plans during the nine months ended September 30, 2022. Currently, we anticipate making additional employer contributions of approximately $10 million to our pension plans and no additional contributions to our postretirement plans in 2022. However, the foregoing estimates of 2022 contributions to our pension and postretirement plans are 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. Plan amendments to our postretirement plans for the year ended December 31, 2021 included several plan changes announced in the second quarter of 2021 to our salaried retiree healthcare plans, primarily changing post-age 65 coverage to a private medicare marketplace. These amendments triggered a plan remeasurement in the second quarter of 2021, resulting in a reduction of $432 million (including discount rate impact and other changes) to our postretirement obligation in the second quarter of 2021 and a corresponding reduction to accumulated other comprehensive losses. |
Earnings (Losses) per Share
Earnings (Losses) per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Losses) per Share | Earnings (Losses) per Share We calculated basic and diluted earnings (losses) per share (“EPS”) using the following: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Net earnings (losses) attributable to Altria $ 3,074 $ 851 $ 224 $ (2,722) Less: Distributed and undistributed earnings attributable to share-based awards (9) (8) (3) (2) Earnings (losses) for basic and diluted EPS $ 3,065 $ 843 $ 221 $ (2,724) Weighted-average shares for basic and diluted EPS 1,808 1,849 1,799 1,842 |
Other Comprehensive Earnings_Lo
Other Comprehensive Earnings/Losses | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Other Comprehensive Earnings/Losses | Other Comprehensive Earnings/Losses The following tables set forth the changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria: For the Nine Months Ended September 30, 2022 (in millions) Benefit Plans ABI Currency Accumulated Balances, December 31, 2021 $ (1,612) $ (1,512) $ 68 $ (3,056) Other comprehensive earnings (losses) before reclassifications — 902 (11) 891 Deferred income taxes — (206) — (206) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes — 696 (11) 685 Amounts reclassified to net earnings (losses) 65 (74) (1) (10) Deferred income taxes (17) 15 — (2) Amounts reclassified to net earnings (losses), net of deferred income taxes 48 (59) (1) (12) Other comprehensive earnings (losses), net of deferred income taxes 48 637 (1) (12) 673 Balances, September 30, 2022 $ (1,564) $ (875) $ 56 $ (2,383) For the Three Months Ended September 30, 2022 (in millions) Benefit Plans ABI Currency Accumulated Balances, June 30, 2022 $ (1,581) $ (869) $ 73 $ (2,377) Other comprehensive earnings (losses) before reclassifications — 18 (16) 2 Deferred income taxes — (11) — (11) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes — 7 (16) (9) Amounts reclassified to net earnings (losses) 24 (16) (1) 7 Deferred income taxes (7) 3 — (4) Amounts reclassified to net earnings (losses), net of deferred income taxes 17 (13) (1) 3 Other comprehensive earnings (losses), net of deferred income taxes 17 (6) (1) (17) (6) Balances, September 30, 2022 $ (1,564) $ (875) $ 56 $ (2,383) For the Nine Months Ended September 30, 2021 (in millions) Benefit Plans ABI Currency Accumulated Balances, December 31, 2020 $ (2,420) $ (1,938) $ 17 $ (4,341) Other comprehensive earnings (losses) before reclassifications 432 (2) 685 35 1,152 Deferred income taxes (118) (151) — (269) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes 314 534 35 883 Amounts reclassified to net earnings (losses) 92 (49) (2) 41 Deferred income taxes (23) 10 — (13) Amounts reclassified to net earnings (losses), net of deferred income taxes 69 (39) (2) 28 Other comprehensive earnings (losses), net of deferred income taxes 383 495 (1) 33 911 Balances, September 30, 2021 $ (2,037) $ (1,443) $ 50 $ (3,430) For the Three Months Ended September 30, 2021 (in millions) Benefit Plans ABI Currency Accumulated Balances, June 30, 2021 $ (2,043) $ (1,604) $ 45 $ (3,602) Other comprehensive earnings (losses) before reclassifications — 215 6 221 Deferred income taxes (9) (48) — (57) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (9) 167 6 164 Amounts reclassified to net earnings (losses) 20 (7) (1) 12 Deferred income taxes (5) 1 — (4) Amounts reclassified to net earnings (losses), net of deferred income taxes 15 (6) (1) 8 Other comprehensive earnings (losses), net of deferred income taxes 6 161 (1) 5 172 Balances, September 30, 2021 $ (2,037) $ (1,443) $ 50 $ (3,430) (1) Primarily reflects our share of ABI’s currency translation adjustments and the impact of our designated net investment hedges related to our equity investment in ABI. For further discussion of designated net investment hedges, see Note 4. Financial Instruments. (2) Reflects the remeasurement impact of salaried retiree healthcare plan amendments. For further discussion, see Note 5. Benefit Plans. The following table sets forth pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings (losses): For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Benefit Plans: (1) Net loss $ 94 $ 124 $ 33 $ 39 Prior service cost/credit (29) (32) (9) (19) 65 92 24 20 ABI (2) (74) (49) (16) (7) Currency Translation Adjustments and Other (2) (1) (2) (1) (1) Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) $ (10) $ 41 $ 7 $ 12 (1) Amounts are included in net defined benefit plan costs. For further details, see Note 5. Benefit Plans. (2) Amounts are included in (income) losses from investments in equity securities. For further information, see Note 3. Investments in Equity Securities. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our products include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; and oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. These products constitute our reportable segments of smokeable products and oral tobacco products at September 30, 2022. The financial services and the innovative tobacco products businesses, which include the heated tobacco business and Helix ROW, are included in all other. Prior to the sale of our wine business on October 1, 2021, wine produced and/or sold by Ste. Michelle was a reportable segment. Our chief operating decision maker (“CODM”) reviews operating companies income (loss) (“OCI”) to evaluate the performance of, and allocate resources to, our segments. OCI for our segments is defined as operating income before general corporate expenses and amortization of intangibles. Interest and other debt expense, net, along with net periodic benefit income/cost, excluding service cost, and provision (benefit) 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 our CODM. Segment data were as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Net Revenues: Smokeable products $ 17,020 $ 17,275 $ 5,882 $ 5,975 Oral tobacco products 1,948 1,945 670 626 Wine — 494 — 177 All other 17 44 (2) 8 Net revenues $ 18,985 $ 19,758 $ 6,550 $ 6,786 Earnings (losses) before Income Taxes: OCI: Smokeable products $ 8,112 $ 7,901 $ 2,791 $ 2,753 Oral tobacco products 1,262 1,269 425 405 Wine — 21 — (24) All other (27) (56) (7) (30) Amortization of intangibles (54) (53) (19) (18) General corporate expenses (192) (255) (78) (135) Operating income 9,101 8,827 3,112 2,951 Interest and other debt expense, net 832 869 271 266 Loss on early extinguishment of debt — 649 — — Net periodic benefit income, excluding service cost (137) (152) (44) (63) (Income) losses from investments in equity securities 3,707 5,789 2,478 5,915 (Gain) loss on Cronos-related financial instruments 14 128 — 135 Earnings (losses) before income taxes $ 4,685 $ 1,544 $ 407 $ (3,302) The comparability of OCI for our reportable segments was affected by the following: ▪ Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded pre-tax (income) for NPM adjustment items as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Smokeable products segment $ (60) $ (53) $ — $ (21) Interest and other debt expense, net — (23) — (23) Total $ (60) $ (76) $ — $ (44) We recorded the amounts in the table shown above for the smokeable products segment as reductions in cost of sales in our condensed consolidated statements of earnings (losses), which increased OCI in our smokeable products segment. NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the Master Settlement Agreement (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation in Note 11. Contingencies ). ▪ Tobacco and Health and Certain Other Litigation Items: We recorded pre-tax charges related to tobacco and health and certain other litigation items as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Smokeable products segment $ 71 $ 72 $ 21 $ 29 General corporate expenses 27 70 20 70 Interest and other debt expense, net 3 6 2 6 Total $ 101 $ 148 $ 43 $ 105 We recorded the amounts shown in the table above for the smokeable products segment and general corporate expenses in marketing, administration and research costs in our condensed consolidated statements of earnings (losses). For further discussion, see Note 11. Contingencies . ▪ Acquisition and Disposition-Related Costs: Disposition-Related Costs: We recorded pre-tax disposition-related costs of $51 million for the nine and three months ended September 30, 2021 in our former wine segment, which consisted of a pre-tax charge of $41 million to record the assets and liabilities associated with UST’s sale of its subsidiary, International Wine & Spirits Ltd. (which included Ste. Michelle), at their fair value less costs to sell and $10 million of other disposition-related costs. We included these costs in marketing, administration and research costs in our consolidated statements of earnings (losses). Acquisition-Related Costs: We recorded pre-tax acquisition-related costs of $37 million for the nine months ended September 30, 2021 in our oral tobacco products segment primarily for the settlement of an arbitration related to the 2019 on! transaction. We included these costs in marketing, administration and research costs in our condensed consolidated statements of earnings (losses). |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term Borrowings and Borrowing Arrangements At September 30, 2022 and December 31, 2021, we had no short-term borrowings. In August 2022, we entered into an extension and amendment (the “Extension and Amendment”) to our $3.0 billion senior unsecured 5-year revolving credit agreement (as amended, the “Credit Agreement”). The Extension and Amendment (i) extended the maturity date of the Credit Agreement from August 1, 2024 to August 1, 2025 and (ii) amended the Credit Agreement to update the benchmark interest rate to a rate based on the Term Secured Overnight Financing Rate (“Term SOFR”) and make certain other market updates. All other terms and conditions of the Credit Agreement remain in full force and effect. The Credit Agreement is used for general corporate purposes. At September 30, 2022, we had availability under the Credit Agreement for borrowings of up to an aggregate principal amount of $3.0 billion. Pricing for interest and fees under the Credit Agreement may be modified in the event of a change in the rating of our long-term senior unsecured debt. We expect interest rates on borrowings under the Credit Agreement to be based on the Term SOFR plus a percentage based on the higher of the ratings of our long-term senior unsecured debt from Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”). The applicable percentage for borrowings under the Credit Agreement at September 30, 2022 was 1.0% based on our long-term senior unsecured debt ratings on that date. 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 us 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 September 30, 2022, the ratio of consolidated EBITDA to Consolidated Interest Expense, calculated in accordance with the Credit Agreement, was 10.9 to 1.0. At September 30, 2022, we were in compliance with our covenants in the Credit Agreement. The terms “Consolidated EBITDA” and “Consolidated Interest Expense,” each as defined in the Credit Agreement, include certain adjustments. Any commercial paper issued by us and borrowings under the Credit Agreement are guaranteed by PM USA. Long-term Debt The aggregate carrying value of our total long-term debt at September 30, 2022 and December 31, 2021 was $26.3 billion and $28.0 billion, respectively. In August 2022, we repaid in full our 2.85% senior unsecured notes in the aggregate principal amount of $1.1 billion at maturity. During the first quarter of 2021, we issued long-term senior unsecured notes in the aggregate principal amount of $5.5 billion. We used the net proceeds from these notes (i) to fund the purchase and redemption of certain unsecured notes and payment of related fees and expenses, as described below, and (ii) for other general corporate purposes. During the first quarter of 2021, we completed debt tender offers to purchase for cash certain of our long-term senior unsecured notes in an aggregate principal amount of $4,042 million and also redeemed all of our outstanding 3.490% notes due 2022 in an aggregate principal amount of $1.0 billion. As a result of the debt tender offers and redemption, during the first quarter of 2021, we recorded pre-tax losses on early extinguishment of debt of $649 million, which included premiums and fees of $623 million and the write-off of unamortized debt discounts and debt issuance costs of $26 million. At September 30, 2022 and December 31, 2021, accrued interest on long-term debt of $196 million and $429 million, respectively, was included in other accrued liabilities on our condensed consolidated balance sheets. For a discussion of the fair value of our long-term debt and the designation of our Euro denominated senior unsecured notes as a net investment hedge of our investment in ABI, see Note 4. Financial Instruments . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In August 2022, the U.S. Government enacted legislation commonly referred to as the Inflation Reduction Act. The main provisions of the Inflation Reduction Act that we anticipate may impact us are: (i) a 15% corporate alternative minimum tax (“Corporate AMT”) and (ii) a 1% excise tax on share repurchases, which we expect to record in equity on our consolidated statements of stockholders’ equity (deficit), in each case, effective for tax years beginning after December 31, 2022. We will be considered an “applicable corporation” for purposes of the new Corporate AMT. We anticipate our regular federal income tax liability will generally exceed our Corporate AMT liability in future years. Earnings (losses) before income taxes, provision (benefit) for income taxes and income tax rates consisted of the following: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Earnings (losses) before income taxes $ 4,685 $ 1,544 $ 407 $ (3,302) Provision (benefit) for income taxes 1,611 693 183 (582) Income tax rate 34.4 % 44.9 % 45.0 % 17.6 % Our income tax rate for the nine and three months ended September 30, 2022 differs from the U.S. federal statutory rate of 21%, due primarily to state tax expense, including the state tax treatment of the impairment charge on our equity investment in ABI, and a valuation allowance recorded against a deferred tax asset related to the decrease in the estimated fair value of our investment in JUUL, partially offset by the release of a valuation allowance related to our Cronos warrant and tax accruals no longer required. Our income tax rates for the nine and three months ended September 30, 2021 differ from the U.S. federal statutory rate of 21%, due primarily to the state tax treatment of the impairment charge on our equity investment in ABI. For further information on the changes in the estimated fair value of our investment in JUUL and the impairment of our equity investment in ABI, see Note 3. Investments in Equity Securities . The following chart provides a reconciliation of the beginning and ending valuation allowances for the period ended September 30, 2022: (in millions) Balance at beginning of year $ 3,097 Additions to valuation allowance charged to income tax expense 395 Releases to valuation allowance credited to income tax benefit (65) Foreign currency translation — Balance at end of period $ 3,427 We determine 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, we consider 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 additions in valuation allowances for the nine months ended September 30, 2022 were due primarily to deferred tax assets recorded in connection with decreases in the estimated fair value of our investment in JUUL. The releases in valuation allowances for the nine months ended September 30, 2022 were due to realizability of anticipated capital losses related to our Cronos warrant. The cumulative valuation allowance at September 30, 2022 was primarily attributable to deferred tax assets recorded in connection with our investment in JUUL and our Investment in Cronos. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal proceedings covering a wide range of matters are pending or threatened in various United States and foreign jurisdictions against Altria and certain of our subsidiaries, including PM USA and USSTC, as well as our indemnitees and investees. Various types of claims may be raised in these proceedings, including product liability, unfair trade practices, antitrust, income tax liability, contraband shipments, patent infringement, employment matters, claims alleging violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 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, we 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, under certain circumstances, we may have to pay more than our proportionate share of any bonding- or judgment-related amounts. Furthermore, in those cases where plaintiffs are successful, we 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 we cannot predict the outcome of such challenges, it is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome of one or more such challenges. We record provisions in our condensed consolidated financial statements for pending litigation when we 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 11. 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 our condensed consolidated financial statements for unfavorable outcomes, if any. Litigation defense costs are expensed as incurred. We have achieved substantial success in managing litigation. Nevertheless, litigation is subject to uncertainty and significant challenges remain. It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation. We believe, and have been so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid bases for appeal of adverse verdicts. We have defended, and will continue to defend, vigorously against litigation challenges. However, we may enter into settlement discussions in particular cases if we believe it is in our best interests to do so. Judgments Paid and Provisions for Tobacco and Health (Including Engle Progeny Litigation) and Certain Other Litigation Items: The changes in our accrued liability for tobacco and health and certain other litigation items, including related interest costs, for the periods specified below are as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Accrued liability for tobacco and health and certain other litigation items at beginning of period $ 91 $ 9 $ 25 $ — Pre-tax charges for: Tobacco and health and certain other litigation (1) 98 142 41 99 Related interest costs 3 6 2 6 Payments (137) (60) (13) (8) Accrued liability for tobacco and health and certain other litigation items at end of period $ 55 $ 97 $ 55 $ 97 (1) Includes judgments, settlements and fee disputes associated with tobacco and health and certain other litigation. See S hareholder Class Action and Shareholder Derivative Lawsuits below for discussions of the shareholder class action case and related settlement and the proposed settlement of the federal and state shareholder derivative lawsuits. The accrued liability for tobacco and health and certain other litigation items, including related interest costs, was included in accrued liabilities on our condensed consolidated balance sheets. Pre-tax charges for tobacco and health and certain other litigation were included in marketing, administration and research costs on our condensed consolidated statements of earnings (losses). Pre-tax charges for related interest costs were included in interest and other debt expense, net on our condensed consolidated statements of earnings (losses). 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 $941 million and interest totaling approximately $230 million as of September 30, 2022. These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $432 million and related interest totaling approximately $59 million. Security for Judgments: To obtain stays of judgments pending appeal, PM USA has posted various forms of security. As of October 24, 2022, PM USA has posted appeal bonds totaling approximately $42 million, which have been collateralized with restricted cash that are included in assets on our condensed consolidated balance sheets. Overview of 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 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 United States against us as of: October 24, 2022 October 25, 2021 Individual Smoking and Health Cases (1) 161 179 Health Care Cost Recovery Actions (2) 1 1 E-vapor Cases (3) 4,351 2,951 Other Tobacco-Related Cases (4) 3 3 (1) Includes as of October 24, 2022, 18 cases filed in Illinois, 18 cases filed in New Mexico, 35 cases filed in Massachusetts and 54 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 1,395 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. Class members were prohibited from filing individual lawsuits after 2000 under the court-approved settlement. (2) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. (3) Includes as of October 24, 2022, 58 class action lawsuits, 3,119 individual lawsuits and 1,174 “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. The 58 class action lawsuits include 32 cases in the Northern District of California (“Multidistrict Litigation” or “MDL”) involving plaintiffs whose claims were previously included in other class action complaints but were refiled as separate stand-alone class actions for procedural and other reasons. (4) Includes as of October 24, 2022, 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 October 24, 2022, (i) Altria is named as a defendant in two 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 (defined below) 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 October 24, 2022, two Engle progeny cases, one individual smoking and health case and one e-vapor case are set for trial through December 31, 2022. Trial dates are subject to change. Trial Results: Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 72 tobacco-related cases in which PM USA was a defendant. Verdicts in favor of PM USA and other defendants were returned in 45 of the 72 cases. These 45 cases were tried in Alaska (1), California (7), Connecticut (1), Florida (10), Louisiana (1), Massachusetts (5), 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). One case in Massachusetts, Main , where the verdict was initially returned in favor of PM USA, was reversed on appeal and remanded for a new trial. Of the 27 non- Engle progeny cases in which verdicts were returned in favor of plaintiffs, 23 have reached final resolution. See Smoking and Health Liti gation - Engle Progeny Trial Results below for a discussion of verdicts in state and federal Engle progeny cases involving PM USA as of October 24, 2022. 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 2022 (or recently concluded) 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. Mendez : In September 2022, a jury in a Florida state court returned a verdict in favor of plaintiff and against PM USA and R.J. Reynolds Tobacco Company awarding approximately $4.5 million in compensatory damages and allocating 13% of the fault to PM USA. After applying comparative fault, PM USA’s portion of the compensatory damages is less than $1 million. There was no claim for punitive damages. PM USA’s post-trial motions are pending. Fontaine : In September 2022, a jury in a Massachusetts state court returned a verdict in favor of plaintiff and against PM USA, awarding approximately $8 million in compensatory damages and $1 billion in punitive damages. We intend to file post-trial motions challenging the award and, if necessary, an appeal. 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 appealed the trial court verdict to the Third District Court of Appeal and, in September 2021, the appellate court reversed the trial court’s decision and found in favor of PM USA. Plaintiff moved for a rehearing before the Third District Court of Appeal, which the court denied in March 2022. In April 2022, plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. In July 2022, the Florida Supreme Court denied plaintiff’s motion for discretionary review. 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. In February 2021, the trial court awarded plaintiffs attorneys’ fees and costs in the amount of approximately $2.3 million. In July 2021, following denial of PM USA’s post-trial motions, PM USA appealed the judgment to the Appeals Court of Massachusetts. In September 2022, the Massachusetts Supreme Judicial Court issued an order taking jurisdiction over the appeal, which remains pending. 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 appealed and, in February 2021, the Massachusetts Supreme Judicial Court asserted jurisdiction over the appeal. In September 2021, the Massachusetts Supreme Judicial Court affirmed the trial court award of $21 million in compensatory and punitive damages. PM USA recorded a pre-tax provision of approximately $27.1 million in the third quarter of 2021 and paid $30.3 million (including the judgment and interest) in December 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 October 24, 2022, approximately 691 state court cases were pending against PM USA or Altria asserting individual claims by or on behalf of approximately 869 state court plaintiffs. Because of a number of factors, including docketing delays, duplicated filings and overlapping dismissal orders, these numbers are estimates. The 2015 federal Engle agreement resolved nearly all Engle progeny cases pending in federal court as of the date of the agreement, and each case excluded from that agreement subsequently has been resolved. Engle Progeny Trial Results: As of October 24, 2022, 142 federal and state Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court Engle decision. Seventy-eight verdicts were returned in favor of plaintiffs, and seven verdicts ( Skolnick , Calloway , Oshinsky-Blacker, McCoy, Mahfuz, Neff and Gloger ) that were initially returned in favor of plaintiffs were reversed post-trial or on appeal and remain pending. In two cases, Kaplan ( McLaughlin ) and Sommers , the punitive damages awards were vacated on appeal and remanded for new trials. In Sommers , the trial court granted PM USA’s motion for summary judgment, and plaintiff has appealed. Fifty-six verdicts were returned in favor of PM USA, of which 46 were state cases. In addition, there have been a number of mistrials, only some of which have resulted in new trials as of October 24, 2022. The jury in one case, Garcia , awarded plaintiff compensatory damages and found plaintiff was entitled to punitive damages; however, the court declared a mistrial in the second phase of the trial regarding punitive damages because the jury was unable to determine the amount of the punitive damages. 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 judgment 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. A post-trial appeal is pending in Duignan. The verdicts in the retrials in Gloger and Rintoul ( Caprio ) were reversed upon appeal and remanded for new trials. Two cases, Freeman and Harris , resulted in an appellate reversal of a jury verdict in favor of plaintiff, and a judgment in favor of PM USA. One case, R. Douglas , was dismissed with prejudice following a verdict in favor of plaintiff. 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 cases that are pending as of October 24, 2022 where PM USA has recorded a provision in its condensed consolidated financial statements because we have determined that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated; the second chart lists cases that are pending as of October 24, 2022 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 cases that have concluded in the past 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. References below to “R.J. Reynolds,” “Lorillard” and “Liggett Group” are to R.J. Reynolds Tobacco Company, Lorillard Tobacco Company and Liggett Group, LLC, respectively. Currently Pending Engle Cases with Accrued Liabilities (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Post-Trial Status Accrual (1) Miller September 2022 PM USA and R.J. Reynolds Miami-Dade $2 million (<$1 million PM USA) $0 Defendants’ post-trial motions pending. <$1 million in the third quarter of 2022 (1) Accrual amounts include interest and associated costs, if applicable. For any case 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. Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Post-Trial Status Levine September 2022 PM USA and R.J. Reynolds Miami-Dade $1 million ($1 million PM USA) $0 Defendants’ post-trial motions pending. Schertzer April 2022 PM USA and R.J. Reynolds Miami-Dade $3 million $0 Appeal by defendants to the Third District Court of Appeal pending. Lipp September 2021 PM USA Miami-Dade $15 million $28 million Appeal by defendant to Third District Court of Appeal pending. Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Post-Trial Status Garcia May 2021 PM USA Miami-Dade $6 million Mistrial Appeals by plaintiff and defendant to Third District Court of Appeal pending. Duignan February 2020 (2) PM USA and R.J. Reynolds Pinellas $3 million $12 million Appeal by defendants to Third District Court of Appeal pending. McCall March 2019 PM USA Broward <$1 million (<$1 million PM USA) $0 Awaiting new trial date on punitive damages. Holliman February 2019 PM USA Miami-Dade $3 million $0 Appeal by defendant to Third District Court of Appeal pending. Chadwell September 2018 PM USA Miami-Dade $2 million $0 Defendant’s petition for review to the Florida Supreme Court pending. Kaplan ( McLaughlin ) July 2018 PM USA and R.J. Reynolds Broward $2 million $0 Florida Supreme Court vacated the punitive damages award in accordance with the decision in Sheffield (3) . The Fourth District Court of Appeals affirmed the compensatory damages award and granted a new trial on punitive damages. Cooper ( Blackwood ) September 2015 PM USA and R.J. Reynolds Broward $5 million (<$1 million PM USA) $0 Fourth District Court of Appeal affirmed the compensatory damages award and granted a new trial on punitive damages. D. Brown January 2015 PM USA Federal Court - Middle District of Florida $8 million ($5 million PM USA) $0 U.S. Court of Appeals for the Eleventh Circuit vacated the punitive damages award and reduced the compensatory damages award based on plaintiff’s comparative fault to $5 million, which was accrued and paid in August 2022. Awaiting new trial date on punitive damages. (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 Sheffield , which is discussed below in Engle Progeny Appellate Issues . Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount (if any) Payment Date Tuttle August 2022 PM USA Duval Third quarter of 2022 <$1 million October 2022 Cuddihee January 2020 PM USA Duval Second quarter of 2022 $2 million June 2022 Engle Progeny Appellate Issues: Appellate decisions in the following Engle progeny cases may have wide application to other Engle progeny cases: In Mary Sheffield v. R.J. Reynolds Tobacco Company , an Engle progeny case against R.J. Reynolds only, the Florida Supreme Court resolved a conflict among Florida’s District Courts of Appeal finding that the 1999 amendments to Florida’s punitive damages statute (including its caps and bar on multiple punitive damages awards for the same course of conduct) apply in wrongful death cases where the decedent was injured prior to the October 1, 1999 effective date of the amendments but died from his or her injuries after such effective date. In Linda Prentice v. R.J. Reynolds Tobacco Company , an Engle progeny case against R.J. Reynolds only, the Florida Supreme Court resolved a conflict among Florida’s District Courts of Appeal finding that in order for an Engle plaintiff to prevail on fraudulent concealment and conspiracy claims, plaintiff must prove that the smoker relied to his or her detriment on a statement that concealed or omitted material information about the health risks or addictiveness of smoking. The Florida Supreme Court declined to revisit its prior decisions giving preclusive effect to the Engle Phase I findings, described above in Engle Class Action . 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 have purported to be brought on behalf of residents of a particular state or states (although a few cases have purported to be nationwide in scope) and have raised 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 October 24, 2022, 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 us) seeking protection under Canada’s Companies’ Creditors Arrangement Act (which is similar to Chapter 11 bankruptcy in the United States). 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 contrar |
New Accounting Guidance Not Yet
New Accounting Guidance Not Yet Adopted | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance Not Yet Adopted | New Accounting Guidance Not Yet Adopted The following table provides a description of issued accounting guidance applicable to, but not yet adopted by, us: Standards Description Effective Date for Public Entity Effect on Financial Statements ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The guidance updates how an entity recognizes and measures contract assets and contract liabilities acquired in a business combination. Acquirers will now account for related revenue contracts in accordance with Topic 606 as if it had originated the contract. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We do not expect our adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also specify required disclosures for equity securities subject to contractual sale restrictions. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. We do not expect our adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Altria and PMI Purchase Agreement On October 19, 2022 (the “Effective Date”), ALCS and Altria (solely with respect to certain provisions thereunder) entered into an agreement (the “Purchase Agreement”) with Triaga, Inc. (“Triaga”), a subsidiary of PMI, and PMI (solely with respect to certain provisions thereunder), to, among other things, transition and ultimately conclude our relationship with respect to the IQOS Tobacco Heating System ® (“ IQOS System”) in the U.S. Under the terms of the Purchase Agreement, Triaga paid ALCS $1.0 billion upon entry into the Purchase Agreement and is obligated to make an additional payment of $1.7 billion (plus interest thereon from the Effective Date at a per annum rate equal to 6%) to ALCS by July 15, 2023, for a total cash payment of approximately $2.7 billion (plus interest). For the consideration received, ALCS has agreed to assign to Triaga exclusive U.S. commercialization rights to the IQOS System effective April 30, 2024. PMI will not have access to the Marlboro brand name or other brand assets, as PM USA owns the Marlboro trademark in the U.S. We expect to record the $2.7 billion pre-tax transaction amount as a deferred gain on our consolidated balance sheet in the fourth quarter of 2022. We expect to recognize this gain in earnings when we relinquish our rights to the IQOS System. Altria and Japan Tobacco Joint Venture On October 26, 2022, Altria, through PM USA, entered into a joint venture with JTI (US) Holding, Inc. (“JTIUH”), a subsidiary of Japan Tobacco Inc., for the U.S. marketing and commercialization of heated tobacco stick (“HTS”) products. HTS products are defined in the joint venture agreement as products that include both (i) a tobacco heating device intended to heat the consumable without combusting and (ii) a consumable that meets the definition of a cigarette under the U.S. Federal Cigarette Labeling and Advertising Act. The joint venture is structured to exist in perpetuity and forms the Horizon Innovations LLC (“Horizon”) entity, which is responsible for the U.S. commercialization of current and future HTS products owned by either party. Upon pre-market tobacco application (“PMTA”) authorization, Horizon will become the exclusive entity through which the parties market and commercialize HTS products in the U.S. The parties expect to jointly prepare FDA filings for the latest version of Ploom HTS products. Upon PMTA authorization of Ploom HTS products, JTIUH will supply Ploom heated tobacco stick devices and PM USA will manufacture Marlboro HTS consumables for U.S. commercialization. PM USA holds a 75% economic interest in Horizon, with JTIUH having a 25% economic interest. The parties plan to collaborate on a global smoke-free partnership. However, if an international heated tobacco joint venture between the parties is not reached over the next five years, PM USA may elect to increase its economic interest in Horizon to 80%. PM USA is responsible for making initial capital contributions to Horizon of up to $150 million, as charges are incurred. Any additional capital contributions made to Horizon after the initial $150 million will be split according to economic ownership. The parties will both maintain independent ownership of their respective intellectual property, including any intellectual property acquired that supports the development of future HTS products. The parties have agreed to commercialization milestones for Horizon, which include distribution requirements and minimum levels of cumulative marketing investment. Distribution requirements include minimum cumulative numbers of stores where devices and consumables are sold, minimum cumulative weighted distribution and minimum cumulative number of new metro areas where at least one direct retail store is established and fully operational. Horizon is governed by a board of managers. The board is comprised of four individuals designated by PM USA and three individuals designated by JTIUH. Both PM USA and JTIUH are also entitled to designate up to three board observers. We expect to include the financial results of Horizon as part of our “all other” category in our consolidated financial statements, with the 25% ownership interest held by JTIUH to be reported as a non-controlling interest. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investments in Equity Securities | We account for our investments in ABI and Cronos under the equity method of accounting using a one-quarter lag. We account for our investment in JUUL at fair value.As of September 30, 2022, we accounted for our investment in JUUL as an investment in an equity security. We will continue to measure our investment in JUUL at fair value, in accordance with GAAP. Our condensed consolidated statements of earnings (losses) include any cash dividends received from our investment in JUUL and any changes in the estimated fair value of our investment, which is calculated quarterly. We use an income approach to estimate the fair value of our investment in JUUL. The income approach reflects the discounting of future cash flows for the United States 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. In determining the estimated fair value of our investment in JUUL, at September 30, 2022 and December 31, 2021, we made certain judgments, estimates and assumptions, the most significant of which were likelihood of certain potential regulatory and liquidity outcomes, 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, we made judgments regarding the (i) likelihood of certain potential regulatory actions impacting the e-vapor category and specifically whether the FDA will ultimately authorize JUUL’s products, which have received MDOs and are now under additional administrative review; (ii) likelihood of JUUL maintaining adequate liquidity to fund projected cash needs, the absence of which could result in JUUL seeking protection under bankruptcy or other insolvency laws; (iii) risk created by the number and types of legal cases pending against JUUL; (iv) expectations for the future state of the e-vapor category, including competitive dynamics; and (v) timing of international expansion plans. Due to these uncertainties, our future cash flow projections of JUUL are based on a range of scenarios that consider certain potential regulatory, liquidity and market outcomes. |
Basis of Presentation | Our interim condensed consolidated financial statements are unaudited. Our management believes that all adjustments necessary for a fair statement of the interim results presented have been reflected in our interim condensed consolidated financial statements. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year. |
New Accounting Pronouncements | On January 1, 2022, we adopted Accounting Standards Update (“ASU”) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”). This 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. Our adoption of ASU No. 2020-06 did not have a material impact on our condensed consolidated financial statements. For a description of issued accounting guidance applicable to, but not yet adopted by, us, see Note 12. New Accounting Guidance Not Yet Adopted . Standards Description Effective Date for Public Entity Effect on Financial Statements ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The guidance updates how an entity recognizes and measures contract assets and contract liabilities acquired in a business combination. Acquirers will now account for related revenue contracts in accordance with Topic 606 as if it had originated the contract. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We do not expect our adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also specify required disclosures for equity securities subject to contractual sale restrictions. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. We do not expect our adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. |
Cash Discounts | We calculate substantially all cash discounts, offered to customers for prompt payment, as a flat rate per unit based on agreed-upon payment terms. Prior to the first quarter of 2021 for USSTC and the third quarter of 2021 for PM USA, cash discounts were calculated as a percentage of the list price based on historical experience and agreed-upon payment terms. We record receivables net of the cash discounts on our condensed consolidated balance sheets. |
Revenue from Contract with Customer | We record an allowance for returned goods, which is included in other accrued liabilities on our condensed consolidated balance sheets. It is USSTC’s policy to accept authorized sales returns from its customers for products that have passed the freshness date printed on product packaging due to the limited shelf life of USSTC’s MST and snus products. We 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. We 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 our condensed consolidated financial statements. All returned goods are destroyed upon return and not included in inventory. Consequently, we do not record an asset for USSTC’s right to recover goods from customers upon return. |
Equity Method Investments | We account for our investment in ABI under the equity method of accounting because we have 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, we participate in ABI’s policy making processes. We report our share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for us to record them in the concurrent period. The fair value of our 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. We can convert the Restricted Shares to ordinary shares at our discretion. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share. |
Equity Securities Without Readily Determinable Fair Value | Following Share Conversion in the fourth quarter of 2020, we elected to account for our equity method investment in JUUL under the fair value option. In making this election, we believed measuring our investment at fair value provided quarterly transparency to investors as to the fair market value of our investment in JUUL, given the changes and volatility in the e-vapor category since our initial investment, as well as the lack of publicly available information regarding JUUL’s business or a market-derived valuation. |
Derivatives, Policy | We recognized 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 U.S. dollar exchange rate in accumulated other comprehensive losses related to ABI. We recognized gains on the foreign currency contracts arising from components excluded from effectiveness testing in interest and other debt expense, net in our condensed consolidated statements of earnings (losses) based on an amortization approach. |
Income Taxes | We determine 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, we consider 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. |
Revenue From Contract With Customer, Deferred Revenue | We record payments received in advance of product shipment as deferred revenue. These payments are included in other accrued liabilities on our condensed consolidated balance sheets until control of such products is obtained by the customer. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Share Repurchase Activity | Our share repurchase activity was as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions, except per share data) 2022 2021 2022 2021 Total number of shares repurchased 29.9 20.2 8.5 6.7 Aggregate cost of shares repurchased $ 1,451 $ 972 $ 368 $ 322 Average price per share of shares repurchased $ 48.60 $ 48.17 $ 43.68 $ 48.35 |
Investments in Equity Securit_2
Investments in Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Investment | The carrying amount of our investments consisted of the following: (in millions) September 30, 2022 December 31, 2021 ABI $ 9,048 $ 11,144 JUUL 350 1,705 Cronos (1) 416 632 Total $ 9,814 $ 13,481 (1) Our investment in Cronos at September 30, 2022 and December 31, 2021 consisted of our equity method investment in Cronos of $415 million and $617 million, respectively, and also included the Cronos warrant and the Fixed-price Preemptive Rights, which are measured at fair value (collectively, “Investment in Cronos”). See below for further discussion. |
Equity Method Investments | (Income) losses from investments in equity securities consisted of the following: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 ABI (1) $ 2,155 $ 5,644 $ 2,367 $ 6,036 Cronos (1) 197 145 11 (21) (Income) losses from investments under equity method of accounting 2,352 5,789 $ 2,378 $ 6,015 JUUL (2) 1,355 — 100 (100) (Income) losses from investments in equity securities $ 3,707 $ 5,789 $ 2,478 $ 5,915 (1) Includes our share of amounts recorded by our investees and additional adjustments, if required, related to (i) the conversion from international financial reporting standards to United States generally accepted accounting principles (“ GAAP”) and (ii) adjustments to our investment required under the equity method of accounting. (2) Investment in JUUL is accounted for as an investment in an equity security measured at fair value. See below for further discussion of the change from equity method of accounting in the third quarter of 2022. We recorded non-cash, pre-tax unrealized (gains) losses, representing the changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant, as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Fixed-price Preemptive Rights $ 1 $ 21 $ — $ 17 Cronos warrant 13 107 — 118 Total $ 14 $ 128 $ — $ 135 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the beginning and ending balance of our investment in JUUL, which is classified in Level 3 of the fair value hierarchy: Investment (in millions) Balance Balance at December 31, 2020 $ 1,705 Unrealized gains (losses) included in (income) losses from investments in equity securities — Balance at December 31, 2021 $ 1,705 Unrealized gains (losses) included in (income) losses from investments in equity securities (1,355) Balance at September 30, 2022 $ 350 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Debt | The following table provides the aggregate carrying value and fair value of our total long-term debt: (in millions) September 30, 2022 December 31, 2021 Carrying value $ 26,291 $ 28,044 Fair value 21,614 30,459 Foreign currency denominated debt included in long-term debt above: Carrying value 4,156 4,817 Fair value 3,780 5,114 |
Pre-tax Effects of Net Investment Hedges on Accumulated Other Comprehensive Losses | The pre-tax effects of our net investment hedges on accumulated other comprehensive losses and our condensed consolidated statements of earnings (losses) were as follows: (Gain) Loss Recognized in Accumulated Other Comprehensive Losses (Gain) Loss Recognized in (Gain) Loss Recognized in Accumulated Other Comprehensive Losses For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 2022 2021 Foreign currency contracts $ — $ (16) $ — $ (7) $ — $ — Foreign currency denominated debt (664) (270) — — (289) (118) Total $ (664) $ (286) $ — $ (7) $ (289) $ (118) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit (Income) Cost | Net periodic benefit (income) cost consisted of the following: Pension Postretirement Pension Postretirement For the Nine Months Ended For the Three Months Ended (in millions) 2022 2021 2022 2021 2022 2021 2022 2021 Service cost $ 48 $ 51 $ 17 $ 15 $ 16 $ 17 $ 7 $ 5 Interest cost 155 139 31 29 51 46 11 8 Expected return on plan assets (370) (393) (10) (10) (123) (131) (4) (2) Amortization: Net loss 72 99 14 16 24 33 6 2 Prior service cost (credit) 5 3 (34) (35) 2 1 (11) (20) Net periodic benefit (income) cost $ (90) $ (101) $ 18 $ 15 $ (30) $ (34) $ 9 $ (7) |
Earnings (Losses) per Share (Ta
Earnings (Losses) per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | We calculated basic and diluted earnings (losses) per share (“EPS”) using the following: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Net earnings (losses) attributable to Altria $ 3,074 $ 851 $ 224 $ (2,722) Less: Distributed and undistributed earnings attributable to share-based awards (9) (8) (3) (2) Earnings (losses) for basic and diluted EPS $ 3,065 $ 843 $ 221 $ (2,724) Weighted-average shares for basic and diluted EPS 1,808 1,849 1,799 1,842 |
Other Comprehensive Earnings__2
Other Comprehensive Earnings/Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria: For the Nine Months Ended September 30, 2022 (in millions) Benefit Plans ABI Currency Accumulated Balances, December 31, 2021 $ (1,612) $ (1,512) $ 68 $ (3,056) Other comprehensive earnings (losses) before reclassifications — 902 (11) 891 Deferred income taxes — (206) — (206) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes — 696 (11) 685 Amounts reclassified to net earnings (losses) 65 (74) (1) (10) Deferred income taxes (17) 15 — (2) Amounts reclassified to net earnings (losses), net of deferred income taxes 48 (59) (1) (12) Other comprehensive earnings (losses), net of deferred income taxes 48 637 (1) (12) 673 Balances, September 30, 2022 $ (1,564) $ (875) $ 56 $ (2,383) For the Three Months Ended September 30, 2022 (in millions) Benefit Plans ABI Currency Accumulated Balances, June 30, 2022 $ (1,581) $ (869) $ 73 $ (2,377) Other comprehensive earnings (losses) before reclassifications — 18 (16) 2 Deferred income taxes — (11) — (11) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes — 7 (16) (9) Amounts reclassified to net earnings (losses) 24 (16) (1) 7 Deferred income taxes (7) 3 — (4) Amounts reclassified to net earnings (losses), net of deferred income taxes 17 (13) (1) 3 Other comprehensive earnings (losses), net of deferred income taxes 17 (6) (1) (17) (6) Balances, September 30, 2022 $ (1,564) $ (875) $ 56 $ (2,383) For the Nine Months Ended September 30, 2021 (in millions) Benefit Plans ABI Currency Accumulated Balances, December 31, 2020 $ (2,420) $ (1,938) $ 17 $ (4,341) Other comprehensive earnings (losses) before reclassifications 432 (2) 685 35 1,152 Deferred income taxes (118) (151) — (269) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes 314 534 35 883 Amounts reclassified to net earnings (losses) 92 (49) (2) 41 Deferred income taxes (23) 10 — (13) Amounts reclassified to net earnings (losses), net of deferred income taxes 69 (39) (2) 28 Other comprehensive earnings (losses), net of deferred income taxes 383 495 (1) 33 911 Balances, September 30, 2021 $ (2,037) $ (1,443) $ 50 $ (3,430) For the Three Months Ended September 30, 2021 (in millions) Benefit Plans ABI Currency Accumulated Balances, June 30, 2021 $ (2,043) $ (1,604) $ 45 $ (3,602) Other comprehensive earnings (losses) before reclassifications — 215 6 221 Deferred income taxes (9) (48) — (57) Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes (9) 167 6 164 Amounts reclassified to net earnings (losses) 20 (7) (1) 12 Deferred income taxes (5) 1 — (4) Amounts reclassified to net earnings (losses), net of deferred income taxes 15 (6) (1) 8 Other comprehensive earnings (losses), net of deferred income taxes 6 161 (1) 5 172 Balances, September 30, 2021 $ (2,037) $ (1,443) $ 50 $ (3,430) (1) Primarily reflects our share of ABI’s currency translation adjustments and the impact of our designated net investment hedges related to our equity investment in ABI. For further discussion of designated net investment hedges, see Note 4. Financial Instruments. (2) Reflects the remeasurement impact of salaried retiree healthcare plan amendments. For further discussion, see Note 5. Benefit Plans. |
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 Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Benefit Plans: (1) Net loss $ 94 $ 124 $ 33 $ 39 Prior service cost/credit (29) (32) (9) (19) 65 92 24 20 ABI (2) (74) (49) (16) (7) Currency Translation Adjustments and Other (2) (1) (2) (1) (1) Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) $ (10) $ 41 $ 7 $ 12 (1) Amounts are included in net defined benefit plan costs. For further details, see Note 5. Benefit Plans. (2) Amounts are included in (income) losses from investments in equity securities. For further information, see Note 3. Investments in Equity Securities. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment data were as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Net Revenues: Smokeable products $ 17,020 $ 17,275 $ 5,882 $ 5,975 Oral tobacco products 1,948 1,945 670 626 Wine — 494 — 177 All other 17 44 (2) 8 Net revenues $ 18,985 $ 19,758 $ 6,550 $ 6,786 Earnings (losses) before Income Taxes: OCI: Smokeable products $ 8,112 $ 7,901 $ 2,791 $ 2,753 Oral tobacco products 1,262 1,269 425 405 Wine — 21 — (24) All other (27) (56) (7) (30) Amortization of intangibles (54) (53) (19) (18) General corporate expenses (192) (255) (78) (135) Operating income 9,101 8,827 3,112 2,951 Interest and other debt expense, net 832 869 271 266 Loss on early extinguishment of debt — 649 — — Net periodic benefit income, excluding service cost (137) (152) (44) (63) (Income) losses from investments in equity securities 3,707 5,789 2,478 5,915 (Gain) loss on Cronos-related financial instruments 14 128 — 135 Earnings (losses) before income taxes $ 4,685 $ 1,544 $ 407 $ (3,302) |
Schedule of Non-Participating Manufacturer Adjustment Items | Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded pre-tax (income) for NPM adjustment items as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Smokeable products segment $ (60) $ (53) $ — $ (21) Interest and other debt expense, net — (23) — (23) Total $ (60) $ (76) $ — $ (44) |
Schedule of Tobacco and Health and Certain Other Litigation Items | We recorded pre-tax charges related to tobacco and health and certain other litigation items as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Smokeable products segment $ 71 $ 72 $ 21 $ 29 General corporate expenses 27 70 20 70 Interest and other debt expense, net 3 6 2 6 Total $ 101 $ 148 $ 43 $ 105 |
Income Taxes update (Tables)
Income Taxes update (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Taxes | Earnings (losses) before income taxes, provision (benefit) for income taxes and income tax rates consisted of the following: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Earnings (losses) before income taxes $ 4,685 $ 1,544 $ 407 $ (3,302) Provision (benefit) for income taxes 1,611 693 183 (582) Income tax rate 34.4 % 44.9 % 45.0 % 17.6 % |
Summary of Valuation Allowance | The following chart provides a reconciliation of the beginning and ending valuation allowances for the period ended September 30, 2022: (in millions) Balance at beginning of year $ 3,097 Additions to valuation allowance charged to income tax expense 395 Releases to valuation allowance credited to income tax benefit (65) Foreign currency translation — Balance at end of period $ 3,427 |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contingencies | The changes in our accrued liability for tobacco and health and certain other litigation items, including related interest costs, for the periods specified below are as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Accrued liability for tobacco and health and certain other litigation items at beginning of period $ 91 $ 9 $ 25 $ — Pre-tax charges for: Tobacco and health and certain other litigation (1) 98 142 41 99 Related interest costs 3 6 2 6 Payments (137) (60) (13) (8) Accrued liability for tobacco and health and certain other litigation items at end of period $ 55 $ 97 $ 55 $ 97 (1) Includes judgments, settlements and fee disputes associated with tobacco and health and certain other litigation. See S hareholder Class Action and Shareholder Derivative Lawsuits below for discussions of the shareholder class action case and related settlement and the proposed settlement of the federal and state shareholder derivative lawsuits. The table below lists the number of certain tobacco-related cases pending in the United States against us as of: October 24, 2022 October 25, 2021 Individual Smoking and Health Cases (1) 161 179 Health Care Cost Recovery Actions (2) 1 1 E-vapor Cases (3) 4,351 2,951 Other Tobacco-Related Cases (4) 3 3 (1) Includes as of October 24, 2022, 18 cases filed in Illinois, 18 cases filed in New Mexico, 35 cases filed in Massachusetts and 54 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 1,395 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. Class members were prohibited from filing individual lawsuits after 2000 under the court-approved settlement. (2) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. (3) Includes as of October 24, 2022, 58 class action lawsuits, 3,119 individual lawsuits and 1,174 “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. The 58 class action lawsuits include 32 cases in the Northern District of California (“Multidistrict Litigation” or “MDL”) involving plaintiffs whose claims were previously included in other class action complaints but were refiled as separate stand-alone class actions for procedural and other reasons. (4) Includes as of October 24, 2022, 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. Currently Pending Engle Cases with Accrued Liabilities (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Post-Trial Status Accrual (1) Miller September 2022 PM USA and R.J. Reynolds Miami-Dade $2 million (<$1 million PM USA) $0 Defendants’ post-trial motions pending. <$1 million in the third quarter of 2022 (1) Accrual amounts include interest and associated costs, if applicable. For any case 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. Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Post-Trial Status Levine September 2022 PM USA and R.J. Reynolds Miami-Dade $1 million ($1 million PM USA) $0 Defendants’ post-trial motions pending. Schertzer April 2022 PM USA and R.J. Reynolds Miami-Dade $3 million $0 Appeal by defendants to the Third District Court of Appeal pending. Lipp September 2021 PM USA Miami-Dade $15 million $28 million Appeal by defendant to Third District Court of Appeal pending. Plaintiff Verdict Date Defendant(s) Court Compensatory Damages (1) Punitive Damages Post-Trial Status Garcia May 2021 PM USA Miami-Dade $6 million Mistrial Appeals by plaintiff and defendant to Third District Court of Appeal pending. Duignan February 2020 (2) PM USA and R.J. Reynolds Pinellas $3 million $12 million Appeal by defendants to Third District Court of Appeal pending. McCall March 2019 PM USA Broward <$1 million (<$1 million PM USA) $0 Awaiting new trial date on punitive damages. Holliman February 2019 PM USA Miami-Dade $3 million $0 Appeal by defendant to Third District Court of Appeal pending. Chadwell September 2018 PM USA Miami-Dade $2 million $0 Defendant’s petition for review to the Florida Supreme Court pending. Kaplan ( McLaughlin ) July 2018 PM USA and R.J. Reynolds Broward $2 million $0 Florida Supreme Court vacated the punitive damages award in accordance with the decision in Sheffield (3) . The Fourth District Court of Appeals affirmed the compensatory damages award and granted a new trial on punitive damages. Cooper ( Blackwood ) September 2015 PM USA and R.J. Reynolds Broward $5 million (<$1 million PM USA) $0 Fourth District Court of Appeal affirmed the compensatory damages award and granted a new trial on punitive damages. D. Brown January 2015 PM USA Federal Court - Middle District of Florida $8 million ($5 million PM USA) $0 U.S. Court of Appeals for the Eleventh Circuit vacated the punitive damages award and reduced the compensatory damages award based on plaintiff’s comparative fault to $5 million, which was accrued and paid in August 2022. Awaiting new trial date on punitive damages. (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 Sheffield , which is discussed below in Engle Progeny Appellate Issues . Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million) Plaintiff Verdict Date Defendant(s) Court Accrual Date Payment Amount (if any) Payment Date Tuttle August 2022 PM USA Duval Third quarter of 2022 <$1 million October 2022 Cuddihee January 2020 PM USA Duval Second quarter of 2022 $2 million June 2022 |
New Accounting Guidance Not Y_2
New Accounting Guidance Not Yet Adopted (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Guidance Not Yet Adopted | The following table provides a description of issued accounting guidance applicable to, but not yet adopted by, us: Standards Description Effective Date for Public Entity Effect on Financial Statements ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The guidance updates how an entity recognizes and measures contract assets and contract liabilities acquired in a business combination. Acquirers will now account for related revenue contracts in accordance with Topic 606 as if it had originated the contract. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We do not expect our adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also specify required disclosures for equity securities subject to contractual sale restrictions. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. We do not expect our adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures. |
Background and Basis of Prese_4
Background and Basis of Presentation (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2022 $ / shares | Sep. 30, 2022 USD ($) lease $ / shares | Jun. 30, 2022 $ / shares | Sep. 30, 2021 $ / shares | Sep. 30, 2022 USD ($) lease $ / shares | Sep. 30, 2021 $ / shares | Oct. 28, 2021 USD ($) | Jan. 31, 2021 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of leveraged leases remaining | lease | 1 | 1 | ||||||
Common Stock, Dividend Increase, Percentage | 0.044 | |||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.94 | $ 0.94 | $ 0.90 | $ 0.90 | $ 2.74 | $ 2.62 | ||
Common Stock, Dividend Rate, Annual Per Share | $ / shares | $ 3.76 | $ 3.76 | ||||||
January 2021 Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Planned share repurchase program | $ | $ 3,500,000,000 | $ 2,000,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 374,000,000 | $ 374,000,000 |
Background and Basis of Prese_5
Background and Basis of Presentation (Share Repurchase Table) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Aggregate cost of shares repurchased | $ 368 | $ 322 | $ 1,451 | $ 972 |
January 2021 Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Total number of shares repurchased (shares) | 8.5 | 6.7 | 29.9 | 20.2 |
Aggregate cost of shares repurchased | $ 368 | $ 322 | $ 1,451 | $ 972 |
Average price per share of shares repurchased (usd per share) | $ 43.68 | $ 48.35 | $ 48.60 | $ 48.17 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 310,000,000 | $ 287,000,000 |
Expected period for satisfaction of performance obligation | three days | |
Receivables | $ 52,000,000 | 47,000,000 |
Allowance for doubtful accounts, receivables | $ 0 | $ 0 |
Investments in Equity Securit_3
Investments in Equity Securities (Summary of Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Investments [Line Items] | |||
Investments | $ 9,814 | $ 13,481 | |
ABI [Member] | |||
Investments [Line Items] | |||
ABI | 9,048 | 11,144 | |
JUUL [Member] | |||
Investments [Line Items] | |||
JUUL | 350 | 1,705 | |
Cronos [Member] | |||
Investments [Line Items] | |||
ABI | $ 437 | ||
Cronos | 416 | 632 | |
Common Stock [Member] | Cronos [Member] | |||
Investments [Line Items] | |||
ABI | $ 415 | $ 617 |
Investments in Equity Securit_4
Investments in Equity Securities (Earnings in Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
(Income) losses from investments under equity method of accounting | $ 2,378 | $ 6,015 | $ 2,352 | $ 5,789 |
(Income) losses from investments in equity securities | 2,478 | 5,915 | 3,707 | 5,789 |
ABI [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
(Income) losses from investments under equity method of accounting | 2,367 | 6,036 | 2,155 | 5,644 |
Cronos [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
(Income) losses from investments under equity method of accounting | 11 | (21) | 197 | 145 |
JUUL [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
(Income) losses from investments in equity securities | $ 100 | $ (100) | $ 1,355 | $ 0 |
Investments in Equity Securit_5
Investments in Equity Securities (Investment in ABI Narrative) (Details) - ABI [Member] - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 10% | 10% | ||||
Number of restricted shares owned (in shares) | 185 | 185 | ||||
Number of ordinary shares owned (in shares) | 12 | 12 | ||||
Restricted shares, lock-up period | 5 years | |||||
Equity method investments | $ 9,048 | $ 9,048 | $ 11,144 | |||
Impairment of JUUL equity securities | 2,500 | 2,500 | ||||
Equity method investment, impairment | $ 6,200 | $ 6,200 | ||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Fair value of equity investment | 9,000 | 9,000 | 11,900 | |||
Equity method investments | 11,100 | |||||
Equity method investment, difference between carrying amount and fair value | $ (2,500) | $ (6,200) | $ (2,500) | $ (6,200) | $ (1,100) | $ 800 |
Equity method investment, difference between carrying amount and fair value, percentage (approximately) | (22.00%) | (22.00%) | (9.00%) | 7% |
Investments in Equity Securit_6
Investments in Equity Securities (Investment in JUUL Narrative) (Details) - JUUL [Member] - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Apr. 30, 2020 | Jan. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to acquire equity securities without readily determinable fair value | $ 12,800 | ||||||
Equity securities, ownership percentage | 35% | 35% | |||||
Investment owned, balance, percentage | 35% | 35% | |||||
Investment owned, balance, shares (in shares) | 42 | 42 | |||||
Equity securities without readily determinable fair value, non-compete release trigger percentage of investment carrying value | 10% | ||||||
Equity securities without readily determinable fair value, quantitative assessment adjustment, annual amount | $ 12,800 | ||||||
Equity securities without readily determinable fair value, amount | $ 450 | ||||||
Equity securities, unrealized gain (loss) | $ (100) | $ 100 | $ (1,355) |
Investments in Equity Securit_7
Investments in Equity Securities (JUUL Investment Classified as Level 3) (Details) - Equity Securities [Member] - JUUL [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 1,705 | $ 1,705 |
Unrealized gains (losses) included in (income) losses from investments in equity securities | (1,355) | 0 |
Balance at end of period | $ 350 | $ 1,705 |
Investments in Equity Securit_8
Investments in Equity Securities (Investment in Cronos Narrative) (Details) - Cronos [Member] $ / shares in Units, shares in Thousands, $ in Millions, $ in Billions | 3 Months Ended | 9 Months Ended | ||||
Oct. 24, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 CAD ($) | Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 $ / shares | Dec. 31, 2021 USD ($) | |
Investments [Line Items] | ||||||
Ownership percentage | 41.40% | |||||
Number of ordinary shares owned (approximately) (in shares) | shares | 156,600 | |||||
Fair value of equity investment | $ 437 | $ 617 | ||||
Equity method investments | 437 | |||||
Impairment of JUUL equity securities | $ 107 | |||||
Equity method investment, difference between carrying amount and fair value, percentage (approximately) | (20.00%) | 5% | ||||
Equity method investment, difference between carrying amount and fair value | $ 22 | |||||
Equity Contract, Preemptive Rights [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, shares purchased, (CAD per share) | $ / shares | $ 16.25 | |||||
Equity method investment, number of shares eligible for purchase (approximately) (in shares) | shares | 8,000 | |||||
Equity method investment, aggregate exercise price | $ 0.1 | |||||
Equity Contract, Preemptive Rights [Member] | Subsequent Event [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, aggregate exercise price | $ 100 | |||||
Equity Contract, Warrant [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, shares purchased, (CAD per share) | $ / shares | $ 19 | |||||
Equity method investment, number of shares eligible for purchase (approximately) (in shares) | shares | 84,000 | |||||
Equity method investment, percentage of shares eligible for purchase (approximately) | 10% | |||||
Equity method investment, aggregate exercise price | $ 1.6 | |||||
Equity Contract, Warrant [Member] | Subsequent Event [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, aggregate exercise price | $ 1,200 | |||||
Equity Contract, Warrant And Equity Contract, Preemptive Rights [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investment, warrant exercised, ownership percentage | 52% | |||||
Common Stock [Member] | ||||||
Investments [Line Items] | ||||||
Equity method investments | $ 415 | $ 617 |
Investments in Equity Securit_9
Investments in Equity Securities (Investment in Cronos) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gain (loss) on derivatives | $ 0 | $ 135 | $ 14 | $ 128 |
Fixed-price Preemptive Rights [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gain (loss) on derivatives | 0 | 17 | 1 | 21 |
Cronos Warrant [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gain (loss) on derivatives | $ 0 | $ 118 | $ 13 | $ 107 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Long-term debt repaid | $ 1,105 | $ 6,542 |
Financial Instruments (Aggregat
Financial Instruments (Aggregate Fair Value and Carrying Value) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Carrying value | $ 26,291 | $ 28,044 |
Fair value | 21,614 | 30,459 |
Foreign currency denominated debt included in long-term debt above: | ||
Carrying value | 26,291 | 28,044 |
Foreign Currency Denominated Debt [Member] | ||
Derivative [Line Items] | ||
Carrying value | 4,156 | 4,817 |
Foreign currency denominated debt included in long-term debt above: | ||
Carrying value | 4,156 | 4,817 |
Fair value | $ 3,780 | $ 5,114 |
Financial Instruments (Effects
Financial Instruments (Effects of Net Investment Hedges on Accumulated Other Comprehensive Losses) (Details) - Net Investment Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) Loss Recognized in Accumulated Other Comprehensive Losses | $ (289) | $ (118) | $ (664) | $ (286) |
(Gain) Loss Recognized in Net Earnings (Losses) | 0 | (7) | ||
Foreign currency contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) Loss Recognized in Accumulated Other Comprehensive Losses | 0 | 0 | 0 | (16) |
(Gain) Loss Recognized in Net Earnings (Losses) | 0 | (7) | ||
Foreign currency denominated debt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) Loss Recognized in Accumulated Other Comprehensive Losses | $ (289) | $ (118) | (664) | (270) |
(Gain) Loss Recognized in Net Earnings (Losses) | $ 0 | $ 0 |
Benefit Plans (Schedule Of Comp
Benefit Plans (Schedule Of Components Of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 16 | $ 17 | $ 48 | $ 51 |
Interest cost | 51 | 46 | 155 | 139 |
Expected return on plan assets | (123) | (131) | (370) | (393) |
Amortization: | ||||
Net loss | 24 | 33 | 72 | 99 |
Prior service cost (credit) | 2 | 1 | 5 | 3 |
Net periodic benefit (income) cost | (30) | (34) | (90) | (101) |
Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | 5 | 17 | 15 |
Interest cost | 11 | 8 | 31 | 29 |
Expected return on plan assets | (4) | (2) | (10) | (10) |
Amortization: | ||||
Net loss | 6 | 2 | 14 | 16 |
Prior service cost (credit) | (11) | (20) | (34) | (35) |
Net periodic benefit (income) cost | $ 9 | $ (7) | $ 18 | $ 15 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2021 | Sep. 30, 2022 | |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, contributions by employer | $ 11,000,000 | |
Pension [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Anticipated additional employer contributions | 10,000,000 | |
Postretirement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, contributions by employer | 0 | |
Decrease in obligation, pension and other postretirement benefits | $ (432,000,000) | |
Postretirement [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Anticipated additional employer contributions | $ 0 |
Earnings (Losses) per Share (Ba
Earnings (Losses) per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net earnings (losses) attributable to Altria | $ 224 | $ (2,722) | $ 3,074 | $ 851 |
Less: Distributed and undistributed earnings attributable to share-based awards | (3) | (2) | (9) | (8) |
Earnings (losses) for basic EPS | 221 | (2,724) | 3,065 | 843 |
Earnings (losses) for diluted EPS | $ 221 | $ (2,724) | $ 3,065 | $ 843 |
Weighted-average shares for basic EPS (in shares) | 1,799,000 | 1,842,000 | 1,808,000 | 1,849,000 |
Weighted-average shares for diluted EPS (in shares) | 1,799,000 | 1,842,000 | 1,808,000 | 1,849,000 |
Other Comprehensive Earnings__3
Other Comprehensive Earnings/Losses (Changes in Each Component of Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ (2,403) | $ 3,259 | $ (1,606) | $ 2,925 |
Other comprehensive earnings (losses), net of deferred income taxes | (6) | 172 | 673 | 911 |
Ending balance | (4,232) | (1,265) | (4,232) | (1,265) |
Accumulated Other Comprehensive Losses [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (2,377) | (3,602) | (3,056) | (4,341) |
Other comprehensive earnings (losses) before reclassifications | 2 | 221 | 891 | 1,152 |
Deferred income taxes | (11) | (57) | (206) | (269) |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | (9) | 164 | 685 | 883 |
Amounts reclassified to net earnings (losses) | 7 | 12 | (10) | 41 |
Deferred income taxes | (4) | (4) | (2) | (13) |
Amounts reclassified to net earnings (losses), net of deferred income taxes | 3 | 8 | (12) | 28 |
Other comprehensive earnings (losses), net of deferred income taxes | (6) | 172 | 673 | 911 |
Ending balance | (2,383) | (3,430) | (2,383) | (3,430) |
Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (1,581) | (2,043) | (1,612) | (2,420) |
Other comprehensive earnings (losses) before reclassifications | 0 | 0 | 0 | 432 |
Deferred income taxes | 0 | (9) | 0 | (118) |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | 0 | (9) | 0 | 314 |
Amounts reclassified to net earnings (losses) | 24 | 20 | 65 | 92 |
Deferred income taxes | (7) | (5) | (17) | (23) |
Amounts reclassified to net earnings (losses), net of deferred income taxes | 17 | 15 | 48 | 69 |
Other comprehensive earnings (losses), net of deferred income taxes | 17 | 6 | 48 | 383 |
Ending balance | (1,564) | (2,037) | (1,564) | (2,037) |
ABI [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (869) | (1,604) | (1,512) | (1,938) |
Other comprehensive earnings (losses) before reclassifications | 18 | 215 | 902 | 685 |
Deferred income taxes | (11) | (48) | (206) | (151) |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | 7 | 167 | 696 | 534 |
Amounts reclassified to net earnings (losses) | (16) | (7) | (74) | (49) |
Deferred income taxes | 3 | 1 | 15 | 10 |
Amounts reclassified to net earnings (losses), net of deferred income taxes | (13) | (6) | (59) | (39) |
Other comprehensive earnings (losses), net of deferred income taxes | (6) | 161 | 637 | 495 |
Ending balance | (875) | (1,443) | (875) | (1,443) |
Currency Translation Adjustments and Other [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 73 | 45 | 68 | 17 |
Other comprehensive earnings (losses) before reclassifications | (16) | 6 | (11) | 35 |
Deferred income taxes | 0 | 0 | 0 | 0 |
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes | (16) | 6 | (11) | 35 |
Amounts reclassified to net earnings (losses) | (1) | (1) | (1) | (2) |
Deferred income taxes | 0 | 0 | 0 | 0 |
Amounts reclassified to net earnings (losses), net of deferred income taxes | (1) | (1) | (1) | (2) |
Other comprehensive earnings (losses), net of deferred income taxes | (17) | 5 | (12) | 33 |
Ending balance | $ 56 | $ 50 | $ 56 | $ 50 |
Other Comprehensive Earnings__4
Other Comprehensive Earnings/Losses (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net periodic benefit income, excluding service cost | $ (44) | $ (63) | $ (137) | $ (152) |
(Income) losses from investments in equity securities | 2,378 | 6,015 | 2,352 | 5,789 |
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) | (224) | 2,720 | (3,074) | (851) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings (losses) | 7 | 12 | (10) | 41 |
Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net periodic benefit income, excluding service cost | 24 | 20 | 65 | 92 |
Net loss [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net periodic benefit income, excluding service cost | 33 | 39 | 94 | 124 |
Prior service cost/credit [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net periodic benefit income, excluding service cost | (9) | (19) | (29) | (32) |
ABI [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Income) losses from investments in equity securities | (16) | (7) | (74) | (49) |
Currency Translation Adjustments and Other [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Income) losses from investments in equity securities | $ (1) | $ (1) | $ (1) | $ (2) |
Segment Reporting (Segment Data
Segment Reporting (Segment Data Schedule) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 6,550 | $ 6,786 | $ 18,985 | $ 19,758 | |
Amortization of intangibles | (19) | (18) | (54) | (53) | |
General corporate expenses | (78) | (135) | (192) | (255) | |
Operating income | 3,112 | 2,951 | 9,101 | 8,827 | |
Interest and other debt expense, net | 271 | 266 | 832 | 869 | |
Loss on early extinguishment of debt | 0 | 0 | $ 649 | 0 | 649 |
Net periodic benefit income, excluding service cost | (44) | (63) | (137) | (152) | |
(Income) losses from investments in equity securities | 2,478 | 5,915 | 3,707 | 5,789 | |
(Gain) loss on Cronos-related financial instruments | 0 | 135 | 14 | 128 | |
Earnings (losses) before income taxes | 407 | (3,302) | 4,685 | 1,544 | |
Smokeable Products Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 5,882 | 5,975 | 17,020 | 17,275 | |
OCI | 2,791 | 2,753 | 8,112 | 7,901 | |
Oral Tobacco Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 670 | 626 | 1,948 | 1,945 | |
OCI | 425 | 405 | 1,262 | 1,269 | |
Wine Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 0 | 177 | 0 | 494 | |
OCI | 0 | (24) | 0 | 21 | |
All Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | (2) | 8 | 17 | 44 | |
OCI | $ (7) | $ (30) | $ (27) | $ (56) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Ste. Michelle Transaction [Member] | ||
Segment Reporting Information [Line Items] | ||
Disposal group, total pre-tax charges | $ 41 | $ 41 |
Disposal group disposition related costs | 10 | 10 |
Oral Tobacco Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Business combination, acquisition related costs | 37 | |
Wine Segment [Member] | Marketing Administration And Research Costs [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Ste. Michelle Transaction [Member] | ||
Segment Reporting Information [Line Items] | ||
Disposal group, total pre-tax charges | $ 51 | $ 51 |
Segment Reporting (Non-Particip
Segment Reporting (Non-Participating Manufacturer Adjustment Items) (Details) - Non-Participating Manufacturer Arbitration Panel Decision [Member] - NPM Adjustment to Cost Of Sales [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Loss (gain) related to litigation settlement | $ 0 | $ 44 | $ 60 | $ 76 |
Operating Income (Loss) [Member] | Smokeable Products Segment [Member] | PM USA [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss (gain) related to litigation settlement | 0 | (21) | (60) | (53) |
Interest and other debt expense, net [Member] | Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss (gain) related to litigation settlement | $ 0 | $ 23 | $ 0 | $ 23 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Tobacco and Health and Certain Other Litigation Items) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||
Loss contingency accrual, provision | $ 90 | ||||
Tobacco and Health Litigation Cases [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||
Loss contingency accrual, provision | $ 43 | $ 105 | $ 101 | $ 148 | |
Tobacco and Health Litigation Cases [Member] | General corporate expenses [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||
Loss contingency accrual, provision | 20 | 70 | 27 | 70 | |
Tobacco and Health Litigation Cases [Member] | Segment Reconciling Items [Member] | Interest and other debt expense, net [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||
Loss contingency accrual, provision | 2 | 6 | 3 | 6 | |
PM USA [Member] | Tobacco and Health Litigation Cases [Member] | Operating Segments [Member] | Smokeable Products Segment [Member] | Operating Income (Loss) [Member] | |||||
Schedule of Pre-tax Tobacco and Health Litigation Charges [Line Items] | |||||
Loss contingency accrual, provision | $ 21 | $ 29 | $ 71 | $ 72 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Short-term debt | $ 0 | $ 0 | $ 0 | ||||
Carrying value | 26,291,000,000 | 26,291,000,000 | 28,044,000,000 | ||||
Long-term debt repaid | 1,105,000,000 | $ 6,542,000,000 | |||||
Loss on early extinguishment of debt | 0 | $ 0 | $ 649,000,000 | 0 | $ 649,000,000 | ||
Loss on extinguishment of debt, premiums and fees | 623,000,000 | ||||||
Write-off of amortized debt discounts and issuance costs, debt extinguishment | 26,000,000 | ||||||
Accrued interest on long-term debt | 196,000,000 | $ 196,000,000 | $ 429,000,000 | ||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, repurchased face amount | 4,042,000,000 | ||||||
Senior Notes [Member] | USD Denominated Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 5,500,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 2.85% | ||||||
Repayments of senior unsecured debt | $ 1,100,000,000 | ||||||
Senior Notes [Member] | USD Denominated Notes, 3.490 Percent, Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.49% | ||||||
Long-term debt repaid | $ 1,000,000,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, covenant, consolidated EBITDA to interest expense ratio, minimum | 4 | ||||||
Debt instrument, consolidated EBITDA to interest expense ratio | 10.9 | ||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility Due August 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 3,000,000,000 | $ 3,000,000,000 | |||||
Debt instrument, term | 5 years | ||||||
Term Secured Overnight Financing Rate ("Term SOFR") | Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility Due August 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Earnings (losses) before income taxes | $ 407 | $ (3,302) | $ 4,685 | $ 1,544 |
Provision (benefit) for income taxes | $ 183 | $ (582) | $ 1,611 | $ 693 |
Income tax rate | 45% | 17.60% | 34.40% | 44.90% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Valuation Allowance Rollforward [Roll Forward] | |
Balance at beginning of year | $ 3,097 |
Additions to valuation allowance charged to income tax expense | 395 |
Releases to valuation allowance credited to income tax benefit | (65) |
Foreign currency translation | 0 |
Balance at end of period | $ 3,427 |
Contingencies (General Informat
Contingencies (General Information) (Details) | Sep. 30, 2022 state |
Commitments and Contingencies Disclosure [Abstract] | |
Number of states that cap bond or require no bond | 47 |
Contingencies (Judgments Paid a
Contingencies (Judgments Paid and Provisions for Tobacco and Health Litigation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 216 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | Oct. 24, 2022 | |
Loss Contingency Accrual [Roll Forward] | |||||||
Accrued liability for tobacco and health litigation items at beginning of period | $ 25 | $ 0 | $ 91 | $ 9 | $ 9 | ||
Loss contingency accrual, provision | 90 | ||||||
Payments | (13) | (8) | (137) | (60) | |||
Accrued liability for tobacco and health litigation items at end of period | 55 | 97 | 55 | 97 | $ 91 | $ 55 | |
Related Interest Costs [Member] | |||||||
Loss Contingency Accrual [Roll Forward] | |||||||
Loss contingency accrual, provision | 2 | 6 | 3 | 6 | |||
Assets [Member] | Pending Litigation [Member] | PM USA [Member] | Subsequent Event [Member] | |||||||
Loss Contingency Accrual [Roll Forward] | |||||||
Security posted for appeal of judgments | $ 42 | ||||||
Tobacco and Health Judgment [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Judgments paid (approximately) | 941 | ||||||
Litigation settlement interest expense (income) | 230 | ||||||
Tobacco and Health Judgment [Member] | Tobacco and Health and Certain Other Litigation [Member] | |||||||
Loss Contingency Accrual [Roll Forward] | |||||||
Loss contingency accrual, provision | $ 41 | $ 99 | $ 98 | $ 142 | |||
Engle Progeny Cases [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Judgments paid (approximately) | 432 | ||||||
Litigation settlement interest expense (income) | $ 59 |
Contingencies (Schedule of Pend
Contingencies (Schedule of Pending Cases) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Oct. 24, 2022 claim lawsuit case | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Oct. 25, 2021 claim | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||
Pre-tax charge | $ | $ 55 | $ 97 | $ 55 | $ 97 | $ 91 | $ 25 | $ 0 | $ 9 | ||
Payments | $ | (13) | (8) | (137) | (60) | ||||||
Loss contingency accrual, provision | $ | $ 90 | |||||||||
Individual Smoking and Health Cases [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 179 | |||||||||
Health Care Cost Recovery Actions [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 1 | |||||||||
E-vapor Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 2,951 | |||||||||
Other Tabacco-Related Cases [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 3 | |||||||||
Tobacco and Health Judgment [Member] | Tobacco and Health and Certain Other Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency accrual, provision | $ | $ 41 | $ 99 | $ 98 | $ 142 | ||||||
Subsequent Event [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, class action lawsuit | lawsuit | 17 | |||||||||
Subsequent Event [Member] | Individual Smoking and Health Cases [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 161 | |||||||||
Subsequent Event [Member] | Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | Illinois [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 18 | |||||||||
Subsequent Event [Member] | Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | New Mexico [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 18 | |||||||||
Subsequent Event [Member] | Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | Massachusetts [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 35 | |||||||||
Subsequent Event [Member] | Individual Smoking and Health Cases [Member] | Pending Litigation [Member] | Florida [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 54 | |||||||||
Subsequent Event [Member] | ETS Smoking and Health Case, Flight Attendants [Member] | Pending Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases | case | 1,395 | |||||||||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 1 | |||||||||
Subsequent Event [Member] | E-vapor Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 4,351 | |||||||||
Loss contingency, class action lawsuit | lawsuit | 58 | |||||||||
Subsequent Event [Member] | E-vapor Litigation [Member] | Pending Individual Lawsuits [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 3,119 | |||||||||
Subsequent Event [Member] | E-vapor Litigation [Member] | Pending Lawsuits Filed By State Or Local Governments [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 1,174 | |||||||||
Subsequent Event [Member] | Other Tabacco-Related Cases [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases pending | 3 | |||||||||
Loss contingency, number of inactive cases | case | 1 | |||||||||
Loss contingency, number of inactive class action lawsuits | case | 2 |
Contingencies (Overview of Altr
Contingencies (Overview of Altria and/or PM USA Tobacco-Related Litigation Narrative) (Details) | 286 Months Ended | |||
Oct. 24, 2022 claim case | Oct. 24, 2022 case claim | Oct. 25, 2021 claim | Jan. 31, 2008 claim | |
Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 1 | |||
Engle Progeny Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 9,300 | |||
Individual Smoking and Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 179 | |||
E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 2,951 | |||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 1 | 1 | ||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | Canada [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 2 | 2 | ||
Subsequent Event [Member] | Smoking and Health Class Actions and Aggregated Claims Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 1 | 1 | ||
Subsequent Event [Member] | Individual Smoking and Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 161 | 161 | ||
Subsequent Event [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 4,351 | 4,351 | ||
Subsequent Event [Member] | PM USA [Member] | Health Care Cost Recovery Actions [Member] | Canada [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | claim | 10 | 10 | ||
Subsequent Event [Member] | PM USA [Member] | Engle Progeny Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases set for trial | 2 | 2 | ||
Number of verdicts returned | 142 | |||
Number of favorable verdicts | 56 | |||
Number of unfavorable verdicts | 78 | |||
Subsequent Event [Member] | PM USA [Member] | Non Engle Progeny Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of verdicts returned | 72 | |||
Number of favorable verdicts | 45 | |||
Number of unfavorable verdicts | 27 | |||
Number of claims resolved | 23 | |||
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 | 5 | |||
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] | PM USA [Member] | Individual Smoking and Health Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases set for trial | 1 | 1 | ||
Subsequent Event [Member] | PM USA [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases set for trial | 1 | 1 | ||
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 | claim | 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 | claim | 7 | 7 |
Contingencies (Non-Engle Progen
Contingencies (Non-Engle Progeny Litigation) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | Feb. 28, 2021 | May 31, 2020 | Feb. 29, 2020 | Sep. 30, 2019 | Aug. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||||
Loss contingency accrual, provision | $ 90,000,000 | |||||||||
Non-Engle Progeny Smoking And Health Case, Mendez [Member] | PM USA And R.J. Reynolds Tobacco Company [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 4,500,000 | |||||||||
Non-Engle Progeny Smoking And Health Case, Mendez [Member] | PM USA [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 1,000,000 | |||||||||
Loss contingency, fault allocation percentage | 13% | |||||||||
Punitive damages awarded | $ 0 | |||||||||
Non-Engle Progeny Smoking And Health Case, Fontaine [Member] | PM USA [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 8,000,000 | |||||||||
Punitive damages awarded | $ 1,000,000,000 | |||||||||
Non-Engle Progeny Smoking And Health Case, Principe [Member] | PM USA [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | 11,000,000 | |||||||||
Punitive damages awarded | $ 0 | |||||||||
Non-Engle Progeny Smoking and Health Case, Greene [Member] | PM USA [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 2,300,000 | $ 30,000,000 | $ 10,000,000 | |||||||
Non-Engle Progeny Smoking and Health Case, Laramie [Member] | PM USA [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 11,000,000 | |||||||||
Punitive damages awarded | $ 10,000,000 | |||||||||
Damages awarded, value | $ 21,000,000 | |||||||||
Loss contingency accrual, provision | $ 30,300,000 | $ 27,100,000 |
Contingencies (Engle Class Acti
Contingencies (Engle Class Action And Engle Progeny Trial Results) (Details) | 1 Months Ended | ||||
Oct. 24, 2022 USD ($) claim case plantiff | Feb. 28, 2022 claim | Jul. 31, 2006 | Jan. 31, 2008 claim | Jul. 31, 2000 USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | claim | 4 | ||||
Engle Progeny Cases [Member] | |||||
Loss Contingencies [Line Items] | |||||
Punitive damages awarded | $ | $ 145,000,000,000 | ||||
Number of cases pending | claim | 9,300 | ||||
Engle Progeny Cases [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Punitive damages awarded | $ | $ 74,000,000,000 | ||||
Loss contingency, period for decertified class members to file individual actions against defendants | 1 year | ||||
Subsequent Event [Member] | Engle Progeny Cases [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of verdicts returned | 142 | ||||
Number of unfavorable verdicts | 78 | ||||
Number of claims with unfavorable verdicts pending/reversed | 7 | ||||
Number of favorable verdicts | 56 | ||||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of cases pending | claim | 691 | ||||
Number of plaintiffs | plantiff | 869 | ||||
Subsequent Event [Member] | Engle Progeny Cases, State [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of favorable verdicts | 46 | ||||
Subsequent Event [Member] | Engle Progeny Cases, Pearson, D Cohen, Collar, Chacon [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of verdicts reversed | 4 | ||||
Subsequent Event [Member] | Engle Progeny Cases, Reider and Banks [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Zero damages verdicts | 2 | ||||
Damages awarded, value | $ | $ 0 | ||||
Subsequent Event [Member] | Engle Progeny Cases, Weingart and Hancock [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
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 | 2 | ||||
Subsequent Event [Member] | Engle Progeny Cases Kaplan And Sommers [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of claims with unfavorable verdicts pending/reversed | 2 | ||||
Subsequent Event [Member] | Engle Progeny Cases, R. Douglas [Member] | PM USA [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of claims dismissed | claim | 1 |
Contingencies (Engle Progeny Ca
Contingencies (Engle Progeny Cases Trial Results - Pending and Concluded) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | Sep. 30, 2021 | May 31, 2021 | Feb. 29, 2020 | Mar. 31, 2019 | Feb. 28, 2019 | Sep. 30, 2018 | Jul. 31, 2018 | Sep. 30, 2015 | Jan. 31, 2015 | |
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency accrual, provision | $ 90 | ||||||||||||
Engle Progeny Cases, Miller [Member] | Pending Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | $ 2 | ||||||||||||
Engle Progeny Cases, Miller [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | 1 | ||||||||||||
Punitive damages awarded | 0 | ||||||||||||
Engle Progeny Cases, Levine [Member] | Pending Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | 1 | ||||||||||||
Loss contingency accrual, provision | 1 | ||||||||||||
Engle Progeny Cases, Levine [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | 1 | ||||||||||||
Punitive damages awarded | 0 | ||||||||||||
Engle Progeny Cases, Schertzer [Member] | Pending Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | $ 3 | ||||||||||||
Engle Progeny Cases, Schertzer [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||
Engle Progeny Cases, Lipp [Member] | Pending Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | $ 15 | ||||||||||||
Engle Progeny Cases, Lipp [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Punitive damages awarded | $ 28 | ||||||||||||
Engle Progeny Cases, Garcia [Member] | Pending Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | $ 6 | ||||||||||||
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, 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, 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 | $ 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 | 5 | $ 8 | |||||||||||
Engle Progeny Cases, D. Brown [Member] | Pending Litigation [Member] | PM USA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages awarded | 5 | ||||||||||||
Punitive damages awarded | $ 0 | ||||||||||||
Engle Progeny Cases, Tuttle [Member] | Settled Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages awarded, value | $ 1 | ||||||||||||
Engle Progeny Cases, Cuddihee [Member] | Settled Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages awarded, value | $ 2 |
Contingencies (Florida Bond Sta
Contingencies (Florida Bond Statute) (Details) | Jun. 30, 2009 USD ($) |
Florida [Member] | Engle Progeny Cases, State [Member] | |
Loss Contingencies [Line Items] | |
Maximum bond for all defendants | $ 200,000,000 |
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 | 317 Months Ended | |
Mar. 31, 2019 CAD ($) ruling manufacture | Sep. 30, 2022 case manufacture | Oct. 24, 2022 claim | |
Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases pending | claim | 1 | ||
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] | Philip Morris USA and Altria Group [Member] | Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases pending | claim | 7 | ||
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 | ||
Canada [Member] | Altria Group [Member] | |||
Loss Contingencies [Line Items] | |||
Number of manufacturers | manufacture | 0 | ||
British Columbia and Saskatchewan [Member] | Philip Morris USA and Altria Group [Member] | Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases pending | claim | 2 |
Contingencies (Health Care Cost
Contingencies (Health Care Cost Recovery Litigation) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Nov. 30, 1998 USD ($) state | Sep. 30, 2022 USD ($) manufacture claim | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) manufacture claim | Sep. 30, 2021 USD ($) | Oct. 25, 2021 claim | Mar. 31, 2019 manufacture | |
Loss Contingencies [Line Items] | ||||||||
Litigation settlement | $ 90,000,000 | |||||||
Health Care Cost Recovery Actions [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of cases pending | claim | 1 | |||||||
Number of states with settled litigation | state | 46 | |||||||
State settlement agreements annual payments | $ 9,400,000,000 | |||||||
State settlement agreements attorney fees annual cap | $ 500,000,000 | |||||||
Litigation settlement | $ 1,100,000,000 | $ 1,100,000,000 | $ 3,000,000,000 | $ 3,200,000,000 | ||||
Threatened Litigation [Member] | Canada [Member] | Health Care Cost Recovery Actions [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of cases pending | claim | 10 | 10 | ||||||
Canadian Tobacco Manufacturers [Member] | Canada [Member] | Smoking and Health Class Actions and Aggregated Claims Litigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of manufacturers | manufacture | 3 | 3 | 3 |
Contingencies (NPM Adjustment D
Contingencies (NPM Adjustment Disputes) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) state | Sep. 30, 2021 state | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) state | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) state | Dec. 31, 2018 state | Dec. 31, 2015 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 90 | |||||||||||
Health Care Cost Recovery Actions [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 1,100 | $ 1,100 | $ 3,000 | $ 3,200 | ||||||||
PM USA [Member] | Pending Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, damages sought, value | $ 133 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of states with settled litigation including New York, subsequent expansion | state | 37 | 36 | ||||||||||
Loss contingency, credits to offset payments | 1,150 | |||||||||||
Litigation settlement, amount expected to be awarded from other party | 410 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions [Member] | Settled Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of additional states extended with settled litigation | state | 35 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions [Member] | Pending Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of additional states extended with settled litigation | state | 1 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2004 NPM Adjustment [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible gain | $ 388 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2004 NPM Adjustment [Member] | Pending Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of states with concluded hearings | state | 9 | 9 | ||||||||||
Loss contingency, number of states not settled | state | 10 | |||||||||||
Loss contingency, number of states not in compliance with escrow statues | state | 2 | |||||||||||
Loss contingency, number of states in compliance with escrow statues | state | 7 | |||||||||||
Loss contingency, damages sought, value | $ 23 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2004 NPM Adjustment [Member] | Pending Litigation [Member] | Cost of Sales [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, reduction to cost of sales | $ 21 | |||||||||||
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 | 292 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2017 NPM Adjustments [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible gain | 285 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2018 NPM Adjustments [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible gain | 318 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2019 NPM Adjustments [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible gain | 415 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2020 NPM Adjustments [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible gain | 573 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2021 NPM Adjustments [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible gain | $ 635 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2005-2007 NPM Adjustment [Member] | Pending Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of states not settled | state | 9 | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2005-2007 NPM Adjustment [Member] | Pending Litigation [Member] | Period One | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of states not settled | state | 8 | |||||||||||
Loss contingency, number of states not settled, arbitration period | 3 years | |||||||||||
PM USA [Member] | Health Care Cost Recovery Actions, 2005-2007 NPM Adjustment [Member] | Pending Litigation [Member] | Period Two | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, number of states not settled | state | 1 | |||||||||||
Loss contingency, number of states not settled, arbitration period | 1 year | |||||||||||
New York [Member] | PM USA [Member] | Health Care Cost Recovery Actions, Transition Years 2004-2018 [Member] | Settled Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 435 | |||||||||||
MONTANA [Member] | PM USA [Member] | Settled Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 4 | |||||||||||
Illinois [Member] | PM USA [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 80 | |||||||||||
Illinois [Member] | PM USA [Member] | Health Care Cost Recovery Actions, Transition Years 2004-2021 [Member] | Settled Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 80 | |||||||||||
Illinois [Member] | PM USA [Member] | Health Care Cost Recovery Actions, Transition Years 2019-2021 [Member] | Settled Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 20 |
Contingencies (Other Disputes U
Contingencies (Other Disputes Under the State Settlement Agreements) (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2021 USD ($) | |
PM USA [Member] | Other Disputes Under the State Settlement Agreements [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 | 12 Months Ended | ||
Aug. 31, 2006 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual, provision | $ 90 | |||
Federal Governments Lawsuit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Disclosure period | 10 years | |||
Implementation of Corrective Communications [Member] | Federal Governments Lawsuit [Member] | PM USA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual, provision | $ 36 | $ 36 | ||
Implementation of Corrective Communications [Member] | Federal Governments Lawsuit [Member] | Altria Group [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual, provision | $ 36 | $ 36 |
Contingencies (E-vapor Product
Contingencies (E-vapor Product Litigation and IQOS Litigation) (Details) | 1 Months Ended | |||
Oct. 24, 2022 USD ($) claim | Sep. 30, 2022 USD ($) case lawsuit | Apr. 30, 2020 USD ($) | Oct. 25, 2021 claim | |
E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 2,951 | |||
Number of third party lawsuits | lawsuit | 4 | |||
IQOS [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded, value | $ | $ 95,000,000 | |||
Loss contingency, damages recoverable, value | $ | $ 0 | |||
Subsequent Event [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 4,351 | |||
Class Action Lawsuit [Member] | Subsequent Event [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 58 | |||
Number of pending claims, consolidated for pre-trial purposes | 32 | |||
Pending Individual Lawsuits [Member] | Subsequent Event [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 3,119 | |||
Settled Litigation [Member] | Subsequent Event [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, claims settled, number | 4 | |||
Judgments paid (approximately) | $ | $ 20,000,000 | |||
Pending Class Action Lawsuit [Member] | Subsequent Event [Member] | E-vapor Litigation [Member] | Canada [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 3 | |||
Pending Litigation [Member] | E-vapor Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, number of cases with set trial dates | case | 5 |
Contingencies (Antitrust Litiga
Contingencies (Antitrust Litigation and Shareholder Class Action and Shareholder Derivative Lawsuits) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Feb. 28, 2022 claim | Jan. 31, 2022 USD ($) | Apr. 30, 2021 claim | Aug. 31, 2020 shareholder | Dec. 31, 2019 shareholder | Oct. 31, 2019 shareholder | Dec. 31, 2021 USD ($) | Mar. 31, 2021 shareholder | Jan. 31, 2022 claim | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Aug. 31, 2021 shareholder | Oct. 24, 2022 lawsuit | Nov. 30, 2020 complaint | Apr. 30, 2020 | Jan. 31, 2020 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||||||||||||||||
Loss contingency, number of complaints | complaint | 3 | ||||||||||||||||
Number of plaintiffs | claim | 4 | ||||||||||||||||
Loss contingency, number of shareholders filing class action lawsuits | shareholder | 2 | 2 | 2 | ||||||||||||||
Litigation settlement | $ 90 | ||||||||||||||||
Loss contingency accrual, provision | $ 90 | ||||||||||||||||
Payments for legal settlements | $ 90 | ||||||||||||||||
Loss contingency, number of pending cases consolidated | claim | 5 | 5 | |||||||||||||||
Loss contingency, number of shareholders filing derivative lawsuits | shareholder | 3 | 6 | |||||||||||||||
Federal And State Shareholder Derivative Lawsuits [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss contingency accrual, provision | $ 27 | ||||||||||||||||
JUUL [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Equity securities, ownership percentage | 35% | 35% | |||||||||||||||
Equity securities without readily determinable fair value, non-compete release trigger percentage of investment carrying value | 10% | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Loss contingency, class action lawsuit | lawsuit | 17 |
Contingencies (Lights_Ultra Lig
Contingencies (Lights/Ultra Lights Cases) (Details) - Subsequent Event [Member] | Oct. 24, 2022 case court claim |
Lights [Member] | |
Loss Contingencies [Line Items] | |
Claims not certified, number | case | 23 |
Number of cases pending | 2 |
Lights [Member] | PM USA [Member] | |
Loss Contingencies [Line Items] | |
Number of state courts | court | 21 |
Smoking and Health Class Actions and Aggregated Claims Litigation [Member] | |
Loss Contingencies [Line Items] | |
Number of cases pending | 1 |
Contingencies (UST Litigations
Contingencies (UST Litigations Narrative) (Details) | Oct. 24, 2022 claim |
Pending Individual Lawsuits [Member] | Subsequent Event [Member] | UST Litigation [Member] | |
Loss Contingencies [Line Items] | |
Number of cases pending | 0 |
Contingencies (Guarantees and O
Contingencies (Guarantees and Other Similar Matters Narrative) (Details) | Sep. 30, 2022 USD ($) |
Loss Contingencies [Line Items] | |
Contingent liability related to performance surety bonds | $ 19,000,000 |
Letter of Credit [Member] | |
Loss Contingencies [Line Items] | |
Credit line available under the agreement | 46,000,000 |
Revolving Credit Facility [Member] | Credit Agreement [Member] | |
Loss Contingencies [Line Items] | |
Credit line available under the agreement | $ 3,000,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) | 9 Months Ended | |||
Oct. 26, 2022 USD ($) retailStore board_member | Jul. 15, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 19, 2022 USD ($) | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of direct retail stores established and operational | retailStore | 1 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | IQOS Tobacco Heating System [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Disposal group, purchase agreement, consideration, initial payment | $ 1,000,000,000 | |||
Disposal group, purchase agreement, effective interest rate | 6% | |||
PM USA [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Majority owned subsidiaries, initial capital contribution, maximum | $ 150,000,000 | |||
Number of board members | board_member | 4 | |||
JTIUH [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of board members | board_member | 3 | |||
PM USA And JTIUH [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Length of time to reach a joint venture, term | 5 years | |||
PM USA And JTIUH [Member] | Subsequent Event [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of board observers | board_member | 3 | |||
Horizon [Member] | PM USA [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Ownership percentage in consolidated subsidiary | 75% | |||
Ownership percentage in consolidated subsidiary, increase potential | 80% | |||
Horizon [Member] | JTIUH [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 25% | |||
Forecast [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | IQOS Tobacco Heating System [Member] | ||||
Subsequent Event [Line Items] | ||||
Disposal group, purchase agreement, consideration, additional payment | $ 1,700,000,000 | |||
Forecast [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | IQOS Tobacco Heating System [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sale of rights under an agreement and the exclusive rights to distribute | $ 2,700,000,000 | |||
Disposal group, deferred gain on sale of rights under an agreement | $ 2,700,000,000 |
Uncategorized Items - mo-202209
Label | Element | Value |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 50,000,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 0 |