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Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2012
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information:
PM USA, which is a wholly-owned subsidiary of Altria Group, Inc., has issued guarantees relating to Altria Group, Inc.’s obligations under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper program (the “Guarantees”). Pursuant to the Guarantees, PM USA fully and unconditionally guarantees, as primary obligor, the payment and performance of Altria Group, Inc.’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below.
The Guarantees provide that PM USA guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of PM USA under the Guarantees is absolute and unconditional irrespective of: any lack of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other circumstance that might otherwise constitute a defense available to, or a discharge of, Altria Group, Inc. or PM USA.
The obligations of PM USA under the Guarantees are limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of PM USA that are relevant under Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Guarantees, result in PM USA’s obligations under the Guarantees not constituting a fraudulent transfer or conveyance. For this purpose, “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.
PM USA will be unconditionally released and discharged from its obligations under each of the Guarantees upon the earliest to occur of:
the date, if any, on which PM USA consolidates with or merges into Altria Group, Inc. or any successor;
the date, if any, on which Altria Group, Inc. or any successor consolidates with or merges into PM USA;
the payment in full of the Obligations pertaining to such Guarantees; and
the rating of Altria Group, Inc.’s long-term senior unsecured debt by Standard & Poor’s of A or higher.
At June 30, 2012, the respective principal wholly-owned subsidiaries of Altria Group, Inc. and PM USA were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their common stock.
The following sets forth the condensed consolidating balance sheets as of June 30, 2012 and December 31, 2011, condensed consolidating statements of earnings and comprehensive earnings for the six and three months ended June 30, 2012 and 2011, and condensed consolidating statements of cash flows for the six months ended June 30, 2012 and 2011 for Altria Group, Inc., PM USA and Altria Group, Inc.’s other subsidiaries that are not guarantors of Altria Group, Inc.’s debt instruments (the “Non-Guarantor Subsidiaries”). The financial information is based on Altria Group, Inc.’s understanding of the SEC interpretation and application of Rule 3-10 of SEC Regulation S-X.
The financial information may not necessarily be indicative of results of operations or financial position had PM USA and the Non-Guarantor Subsidiaries operated as independent entities. Altria Group, Inc. and PM USA account for investments in their subsidiaries under the equity method of accounting.
Certain prior-period amounts have been recast to conform with the current-period presentation, due to Middleton becoming a wholly-owned subsidiary of PM USA effective January 1, 2012.
In the second quarter of 2012, Altria Group, Inc. has revised the classification of cash dividends received from subsidiaries on its condensed consolidating statements of cash flows to present them as cash flows from operating activities.  These amounts were previously classified as cash flows from financing activities.  As other prior period financial information is presented, Altria Group, Inc. will similarly revise the condensed consolidating statements of cash flows in its future filings. The impact of this revision, which Altria Group, Inc. determined is not material to the related financial statements, is to increase cash inflows from operating activities (and decrease cash inflows from financing activities) for Altria Group, Inc. and PM USA as follows:

 
Altria Group, Inc.
 
PM USA
 
(in millions)
For the years ended:
 
 
 
December 31, 2011
$
3,666

 
$
213

December 31, 2010
$
3,438

 
$
179

December 31, 2009
$
3,711

 
$
136

For the:
 
 
 
Three months ended March 31, 2012
$
923

 
$
59

Nine months ended September 30, 2011
$
2,702

 
$
110

Six months ended June 30, 2011
$
1,783

 
$
55

Three months ended March 31, 2011
$
890

 
$
26



There was no impact on Altria Group, Inc.'s consolidated statements of cash flows.


Condensed Consolidating Balance Sheets
June 30, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,502

 
$

 
$
26

 
$

 
$
1,528

Receivables
 
164

 
17

 
75

 

 
256

Inventories:
 
 
 
 
 
 
 
 
 
 
Leaf tobacco
 

 
445

 
354

 

 
799

Other raw materials
 

 
135

 
49

 

 
184

Work in process
 

 
4

 
265

 

 
269

Finished product
 

 
180

 
252

 

 
432

 
 

 
764

 
920

 

 
1,684

Due from Altria Group, Inc. and subsidiaries
 
986

 
1,909

 
1,608

 
(4,503
)
 

Deferred income taxes
 
9

 
1,157

 
41

 

 
1,207

Other current assets
 
85

 
312

 
71

 

 
468

Total current assets
 
2,746

 
4,159

 
2,741

 
(4,503
)
 
5,143

Property, plant and equipment, at cost
 
2

 
3,294

 
1,454

 

 
4,750

Less accumulated depreciation
 
2

 
2,074

 
543

 

 
2,619

 
 

 
1,220

 
911

 

 
2,131

Goodwill
 

 

 
5,174

 

 
5,174

Other intangible assets, net
 

 
2

 
12,086

 

 
12,088

Investment in SABMiller
 
6,486

 

 

 

 
6,486

Investment in consolidated subsidiaries
 
9,411

 
3,028

 

 
(12,439
)
 

Due from Altria Group, Inc. and subsidiaries
 
4,500

 

 

 
(4,500
)
 

Other assets
 
191

 
553

 
100

 
(372
)
 
472

Total consumer products assets
 
23,334

 
8,962

 
21,012

 
(21,814
)
 
31,494

Financial services
 
 
 
 
 
 
 
 
 
 
Finance assets, net
 

 

 
3,012

 

 
3,012

Other assets
 

 

 
41

 

 
41

Total financial services assets
 

 

 
3,053

 

 
3,053

Total Assets
 
$
23,334

 
$
8,962

 
$
24,065

 
$
(21,814
)
 
$
34,547




Condensed Consolidating Balance Sheets (Continued)
June 30, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Liabilities
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$

 
$

 
$
600

 
$

 
$
600

Accounts payable
 
69

 
127

 
139

 

 
335

Accrued liabilities:
 
 
 
 
 
 
 
 
 

Marketing
 

 
564

 
17

 

 
581

Taxes, except income taxes
 

 
203

 
15

 

 
218

Employment costs
 
25

 
9

 
76

 

 
110

Settlement charges
 

 
2,178

 
6

 

 
2,184

Other
 
308

 
552

 
357

 

 
1,217

Income taxes
 

 

 

 

 

Dividends payable
 
836

 

 

 

 
836

Due to Altria Group, Inc. and subsidiaries
 
2,506

 
349

 
1,316

 
(4,171
)
 

Total current liabilities
 
3,744

 
3,982

 
2,526

 
(4,171
)
 
6,081

Long-term debt
 
12,790

 

 
299

 

 
13,089

Deferred income taxes
 
2,046

 

 
3,400

 
(372
)
 
5,074

Accrued pension costs
 
230

 

 
909

 

 
1,139

Accrued postretirement health care costs
 

 
1,557

 
810

 

 
2,367

Due to Altria Group, Inc. and subsidiaries
 

 

 
4,500

 
(4,500
)
 

Other liabilities
 
251

 
203

 
152

 

 
606

Total consumer products liabilities
 
19,061

 
5,742

 
12,596

 
(9,043
)
 
28,356

Financial services
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 

 

 
1,764

 

 
1,764

Due to Altria Group, Inc. and subsidiaries
 

 

 
332

 
(332
)
 

Other liabilities
 

 

 
119

 

 
119

Total financial services liabilities
 

 

 
2,215

 
(332
)
 
1,883

Total liabilities
 
19,061

 
5,742

 
14,811

 
(9,375
)
 
30,239

Contingencies
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interest
 

 

 
33

 

 
33

Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
Common stock
 
935

 

 
9

 
(9
)
 
935

Additional paid-in capital
 
5,647

 
3,321

 
10,215

 
(13,536
)
 
5,647

Earnings reinvested in the business
 
24,334

 
205

 
593

 
(798
)
 
24,334

Accumulated other comprehensive losses
 
(1,674
)
 
(306
)
 
(1,598
)
 
1,904

 
(1,674
)
Cost of repurchased stock
 
(24,969
)
 

 

 

 
(24,969
)
Total stockholders’ equity attributable to Altria Group, Inc.
 
4,273

 
3,220

 
9,219

 
(12,439
)
 
4,273

Noncontrolling interests
 

 

 
2

 

 
2

Total stockholders’ equity
 
4,273

 
3,220

 
9,221

 
(12,439
)
 
4,275

Total Liabilities and Stockholders’ Equity
 
$
23,334

 
$
8,962

 
$
24,065

 
$
(21,814
)
 
$
34,547


Condensed Consolidating Balance Sheets
December 31, 2011
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
3,245

 
$

 
$
25

 
$

 
$
3,270

Receivables
 
174

 
16

 
78

 

 
268

Inventories:
 
 
 
 
 
 
 
 
 
 
Leaf tobacco
 

 
565

 
369

 

 
934

Other raw materials
 

 
128

 
42

 

 
170

Work in process
 

 
4

 
312

 

 
316

Finished product
 

 
126

 
233

 

 
359

 
 

 
823

 
956

 

 
1,779

Due from Altria Group, Inc. and subsidiaries
 
403

 
3,007

 
1,765

 
(5,175
)
 

Deferred income taxes
 
9

 
1,157

 
41

 

 
1,207

Other current assets
 
6

 
430

 
247

 
(76
)
 
607

Total current assets
 
3,837

 
5,433

 
3,112

 
(5,251
)
 
7,131

Property, plant and equipment, at cost
 
2

 
3,280

 
1,446

 

 
4,728

Less accumulated depreciation
 
2

 
2,005

 
505

 

 
2,512

 
 

 
1,275

 
941

 

 
2,216

Goodwill
 

 

 
5,174

 

 
5,174

Other intangible assets, net
 

 
2

 
12,096

 

 
12,098

Investment in SABMiller
 
5,509

 

 

 

 
5,509

Investment in consolidated subsidiaries
 
7,009

 
3,035

 

 
(10,044
)
 

Due from Altria Group, Inc. and subsidiaries
 
6,500

 

 

 
(6,500
)
 

Other assets
 
941

 
586

 
111

 
(381
)
 
1,257

Total consumer products assets
 
23,796

 
10,331

 
21,434

 
(22,176
)
 
33,385

Financial services
 
 
 
 
 
 
 
 
 
 
Finance assets, net
 

 

 
3,559

 

 
3,559

Due from Altria Group, Inc. and subsidiaries
 

 

 
292

 
(292
)
 

Other assets
 

 

 
18

 

 
18

Total financial services assets
 

 

 
3,869

 
(292
)
 
3,577

Total Assets
 
$
23,796

 
$
10,331

 
$
25,303

 
$
(22,468
)
 
$
36,962



Condensed Consolidating Balance Sheets (Continued)
December 31, 2011
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Liabilities
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$

 
$

 
$
600

 
$

 
$
600

Accounts payable
 
69

 
159

 
275

 

 
503

Accrued liabilities:
 
 
 
 
 
 
 
 
 

Marketing
 

 
390

 
40

 

 
430

Taxes, except income taxes
 

 
209

 
11

 

 
220

Employment costs
 
29

 
12

 
184

 

 
225

Settlement charges
 

 
3,508

 
5

 

 
3,513

Other
 
384

 
620

 
383

 
(76
)
 
1,311

Dividends payable
 
841

 

 

 

 
841

Due to Altria Group, Inc. and subsidiaries
 
3,792

 
474

 
1,201

 
(5,467
)
 

Total current liabilities
 
5,115

 
5,372

 
2,699

 
(5,543
)
 
7,643

Long-term debt
 
12,790

 

 
299

 

 
13,089

Deferred income taxes
 
1,787

 

 
3,345

 
(381
)
 
4,751

Accrued pension costs
 
236

 

 
1,426

 

 
1,662

Accrued postretirement health care costs
 

 
1,562

 
797

 

 
2,359

Due to Altria Group, Inc. and subsidiaries
 

 

 
6,500

 
(6,500
)
 

Other liabilities
 
188

 
216

 
198

 

 
602

Total consumer products liabilities
 
20,116

 
7,150

 
15,264

 
(12,424
)
 
30,106

Financial services
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 

 

 
2,811

 

 
2,811

Other liabilities
 

 

 
330

 

 
330

Total financial services liabilities
 

 

 
3,141

 

 
3,141

Total liabilities
 
20,116

 
7,150

 
18,405

 
(12,424
)
 
33,247

Contingencies
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interest
 

 

 
32

 

 
32

Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
Common stock
 
935

 

 
9

 
(9
)
 
935

Additional paid-in capital
 
5,674

 
3,283

 
8,238

 
(11,521
)
 
5,674

Earnings reinvested in the business
 
23,583

 
210

 
265

 
(475
)
 
23,583

Accumulated other comprehensive losses
 
(1,887
)
 
(312
)
 
(1,649
)
 
1,961

 
(1,887
)
Cost of repurchased stock
 
(24,625
)
 

 

 

 
(24,625
)
Total stockholders’ equity attributable to Altria Group, Inc.
 
3,680

 
3,181

 
6,863

 
(10,044
)
 
3,680

Noncontrolling interests
 

 

 
3

 

 
3

Total stockholders’ equity
 
3,680

 
3,181

 
6,866

 
(10,044
)
 
3,683

Total Liabilities and Stockholder’s Equity
 
$
23,796

 
$
10,331

 
$
25,303

 
$
(22,468
)
 
$
36,962



Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For The Six Months Ended June 30, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
10,646

 
$
1,500

 
$
(12
)
 
$
12,134

Cost of sales
 

 
3,475

 
415

 
(12
)
 
3,878

Excise taxes on products
 

 
3,411

 
149

 

 
3,560

Gross profit
 

 
3,760

 
936

 

 
4,696

Marketing, administration and research costs
 
87

 
918

 
125

 

 
1,130

Asset impairment and exit costs
 

 
36

 
1

 

 
37

Amortization of intangibles
 

 

 
10

 

 
10

Operating (expense) income
 
(87
)
 
2,806

 
800

 

 
3,519

Interest and other debt expense (income), net
 
367

 
(1
)
 
220

 

 
586

Earnings from equity investment in SABMiller
 
(743
)
 

 

 

 
(743
)
Earnings before income taxes and equity earnings of subsidiaries
 
289

 
2,807

 
580

 

 
3,676

Provision for income taxes
 
55

 
1,040

 
160

 

 
1,255

Equity earnings of subsidiaries
 
2,186

 
107

 

 
(2,293
)
 

Net earnings
 
2,420

 
1,874

 
420

 
(2,293
)
 
2,421

Net earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Net earnings attributable to Altria Group, Inc.
 
$
2,420

 
$
1,874

 
$
419

 
$
(2,293
)
 
$
2,420

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
2,420

 
$
1,874

 
$
420

 
$
(2,293
)
 
$
2,421

Other comprehensive earnings, net of deferred income taxes
 
213

 
6

 
51

 
(57
)
 
213

Comprehensive earnings
 
2,633

 
1,880

 
471

 
(2,350
)
 
2,634

Comprehensive earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Comprehensive earnings attributable to Altria Group, Inc.
 
$
2,633

 
$
1,880

 
$
470

 
$
(2,350
)
 
$
2,633



Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For The Six Months Ended June 30, 2011
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
10,698

 
$
877

 
$
(12
)
 
$
11,563

Cost of sales
 

 
3,455

 
382

 
(12
)
 
3,825

Excise taxes on products
 

 
3,452

 
166

 

 
3,618

Gross profit
 

 
3,791

 
329

 

 
4,120

Marketing, administration and research costs
 
84

 
1,052

 
136

 

 
1,272

Asset impairment and exit costs
 

 
3

 

 

 
3

Amortization of intangibles
 

 

 
11

 

 
11

Operating (expense) income
 
(84
)
 
2,736

 
182

 

 
2,834

Interest and other debt expense, net
 
340

 
4

 
228

 

 
572

Earnings from equity investment in SABMiller
 
(344
)
 

 

 

 
(344
)
(Loss) earnings before income taxes and equity earnings of subsidiaries
 
(80
)
 
2,732

 
(46
)
 

 
2,606

(Benefit) provision for income taxes
 
(71
)
 
1,016

 
279

 

 
1,224

Equity earnings of subsidiaries
 
1,390

 
67

 

 
(1,457
)
 

Net earnings (loss)
 
1,381

 
1,783

 
(325
)
 
(1,457
)
 
1,382

Net earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Net earnings (loss) attributable to Altria Group, Inc.
 
$
1,381

 
$
1,783

 
$
(326
)
 
$
(1,457
)
 
$
1,381

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss)
 
$
1,381

 
$
1,783

 
$
(325
)
 
$
(1,457
)
 
$
1,382

Other comprehensive earnings, net of deferred income taxes
 
205

 
7

 
53

 
(60
)
 
205

Comprehensive earnings (loss)
 
1,586

 
1,790

 
(272
)
 
(1,517
)
 
1,587

Comprehensive earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Comprehensive earnings (loss) attributable to Altria Group, Inc.
 
$
1,586

 
$
1,790

 
$
(273
)
 
$
(1,517
)
 
$
1,586




Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For The Three Months Ended June 30, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
5,724

 
$
769

 
$
(6
)
 
$
6,487

Cost of sales
 

 
1,876

 
216

 
(6
)
 
2,086

Excise taxes on products
 

 
1,834

 
73

 

 
1,907

Gross profit
 

 
2,014

 
480

 

 
2,494

Marketing, administration and research costs
 
53

 
487

 
56

 

 
596

Asset impairment and exit costs
 

 
16

 

 

 
16

Amortization of intangibles
 

 

 
5

 

 
5

Operating (expense) income
 
(53
)
 
1,511

 
419

 

 
1,877

Interest and other debt expense, net
 
182

 

 
111

 

 
293

Earnings from equity investment in SABMiller
 
(223
)
 

 

 

 
(223
)
(Loss) earnings before income taxes and equity earnings of subsidiaries
 
(12
)
 
1,511

 
308

 

 
1,807

(Benefit) provision for income taxes
 
(29
)
 
558

 
52

 

 
581

Equity earnings of subsidiaries
 
1,208

 
58

 

 
(1,266
)
 

Net earnings
 
1,225

 
1,011

 
256

 
(1,266
)
 
1,226

Net earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Net earnings attributable to Altria Group, Inc.
 
$
1,225

 
$
1,011

 
$
255

 
$
(1,266
)
 
$
1,225

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
1,225

 
$
1,011

 
$
256

 
$
(1,266
)
 
$
1,226

Other comprehensive earnings, net of deferred income taxes
 
11

 
7

 
30

 
(37
)
 
11

Comprehensive earnings
 
1,236

 
1,018

 
286

 
(1,303
)
 
1,237

Comprehensive earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Comprehensive earnings attributable to Altria Group, Inc.
 
$
1,236

 
$
1,018

 
$
285

 
$
(1,303
)
 
$
1,236




 
Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For The Three Months Ended June 30, 2011
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
5,687

 
$
239

 
$
(6
)
 
$
5,920

Cost of sales
 

 
1,838

 
198

 
(6
)
 
2,030

Excise taxes on products
 

 
1,833

 
85

 

 
1,918

Gross profit (loss)
 

 
2,016

 
(44
)
 

 
1,972

Marketing, administration and research costs
 
39

 
554

 
78

 

 
671

Asset impairment and exit costs
 

 
1

 

 

 
1

Amortization of intangibles
 

 

 
5

 

 
5

Operating (expense) income
 
(39
)
 
1,461

 
(127
)
 

 
1,295

Interest and other debt expense, net
 
175

 
6

 
113

 

 
294

Earnings from equity investment in SABMiller
 
(155
)
 

 

 

 
(155
)
(Loss) earnings before income taxes and equity earnings of subsidiaries
 
(59
)
 
1,455

 
(240
)
 

 
1,156

(Benefit) provision for income taxes
 
(41
)
 
543

 
210

 

 
712

Equity earnings of subsidiaries
 
462

 
42

 

 
(504
)
 

Net earnings (loss) attributable to Altria Group, Inc.
 
$
444

 
$
954

 
$
(450
)
 
$
(504
)
 
$
444

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss) attributable to Altria Group, Inc.
 
$
444

 
$
954

 
$
(450
)
 
$
(504
)
 
$
444

Other comprehensive earnings, net of deferred income taxes
 
112

 
3

 
27

 
(30
)
 
112

Comprehensive earnings (loss) attributable to Altria Group, Inc.
 
$
556

 
$
957

 
$
(423
)
 
$
(534
)
 
$
556





 
Condensed Consolidating Statements of Cash Flows
For The Six Months Ended June 30, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Cash Provided by (Used In) Operating Activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
714

 
$
935

 
$
229

 
$
(1,963
)
 
$
(85
)
Cash Provided by (Used In) Investing Activities
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(11
)
 
(28
)
 

 
(39
)
Other
 

 

 
(3
)
 

 
(3
)
Financial services
 
 
 
 
 
 
 
 
 
 
Proceeds from finance assets
 

 

 
552

 

 
552

Net cash (used in) provided by investing activities
 

 
(11
)
 
521

 

 
510

Cash Provided by (Used In) Financing Activities
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Repurchases of common stock
 
(360
)
 

 

 

 
(360
)
Dividends paid on common stock
 
(1,674
)
 

 

 

 
(1,674
)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries
 
(424
)
 
960

 
(536
)
 

 

Cash dividends paid to parent
 

 
(1,845
)
 
(118
)
 
1,963

 

Other
 
1

 
(39
)
 
(95
)
 

 
(133
)
Net cash used in financing activities
 
(2,457
)
 
(924
)
 
(749
)
 
1,963

 
(2,167
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
(Decrease) Increase
 
(1,743
)
 

 
1

 

 
(1,742
)
Balance at beginning of period
 
3,245

 

 
25

 

 
3,270

Balance at end of period
 
$
1,502

 
$

 
$
26

 
$

 
$
1,528




 
Condensed Consolidating Statements of Cash Flows
For The Six Months Ended June 30, 2011
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Cash Provided by (Used In) Operating Activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
1,356

 
$
1,022

 
$
(61
)
 
$
(1,838
)
 
$
479

Cash Provided by (Used In) Investing Activities
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(10
)
 
(30
)
 

 
(40
)
Other
 

 
1

 

 

 
1

Financial services
 
 
 
 
 
 
 
 
 
 
Proceeds from finance assets
 

 

 
129

 

 
129

Net cash (used in) provided by investing activities
 

 
(9
)
 
99

 

 
90

Cash Provided by (Used In) Financing Activities
 
 
 
 
 
 
 
 
 
 
Consumer products
 
 
 
 
 
 
 
 
 
 
Long-term debt issued
 
1,494

 

 

 

 
1,494

Repurchases of common stock
 
(575
)
 

 

 

 
(575
)
Dividends paid on common stock
 
(1,589
)
 

 

 

 
(1,589
)
Issuances of common stock
 
29

 

 

 

 
29

Changes in amounts due to/from Altria Group, Inc. and subsidiaries
 
(975
)
 
880

 
95

 

 

Financing fees and debt issuance costs
 
(23
)
 

 

 

 
(23
)
Cash dividends paid to parent
 

 
(1,783
)
 
(55
)
 
1,838

 

Other
 
26

 
(110
)
 
(71
)
 

 
(155
)
Net cash used in financing activities
 
(1,613
)
 
(1,013
)
 
(31
)
 
1,838

 
(819
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
(Decrease) Increase
 
(257
)
 

 
7

 

 
(250
)
Balance at beginning of period
 
2,298

 

 
16

 

 
2,314

Balance at end of period
 
$
2,041

 
$

 
$
23

 
$

 
$
2,064