Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

at December 31, 2013	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	3,114	$	1	$	60	$	—		$	3,175
Receivables	—		11		104		—			115
Inventories:
Leaf tobacco	—		564		369		—			933
Other raw materials	—		121		59		—			180
Work in process	—		3		391		—			394
Finished product	—		141		231		—			372
	—		829		1,050		—			1,879
Due from Altria Group, Inc. and subsidiaries	590		3,253		1,706		(5,549		)	—
Deferred income taxes	2		1,133		26		(61		)	1,100
Other current assets	109		125		105		(18		)	321
Total current assets	3,815		5,352		3,051		(5,628		)	6,590
Property, plant and equipment, at cost	2		3,269		1,546		—			4,817
Less accumulated depreciation	2		2,168		619		—			2,789
	—		1,101		927		—			2,028
Goodwill	—		—		5,174		—			5,174
Other intangible assets, net	—		2		12,056		—			12,058
Investment in SABMiller	6,455		—		—		—			6,455
Investment in consolidated subsidiaries	11,227		2,988		—		(14,215		)	—
Finance assets, net	—		—		1,997		—			1,997
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	157		455		218		(273		)	557
Total Assets	$	26,444	$	9,898	$	23,423	$	(24,906	)	$	34,859

Condensed Consolidating Balance Sheets (Continued)

(in millions of dollars)

____________________________

at December 31, 2013	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Liabilities
Current portion of long-term debt	$	525		$	—		$	—		$	—		$	525
Accounts payable	26			106			277			—			409
Accrued liabilities:
Marketing	—			464			48			—			512
Employment costs	94			10			151			—			255
Settlement charges	—			3,386			5			—			3,391
Other	302			531			253			(79		)	1,007
Dividends payable	959			—			—			—			959
Due to Altria Group, Inc. and subsidiaries	4,487			473			589			(5,549		)	—
Total current liabilities	6,393			4,970			1,323			(5,628		)	7,058
Long-term debt	13,692			—			300			—			13,992
Deferred income taxes	1,867			—			5,260			(273		)	6,854
Accrued pension costs	197			—			15			—			212
Accrued postretirement health care costs	—			1,437			718			—			2,155
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	176			130			129			—			435
Total Liabilities	22,325			6,537			12,535			(10,691		)	30,706
Contingencies
Redeemable noncontrolling interest	—			—			35			—			35
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,714			3,310			10,328			(13,638		)	5,714
Earnings reinvested in the business	25,168			282			1,498			(1,780		)	25,168
Accumulated other comprehensive losses	(1,378		)	(231		)	(981		)	1,212			(1,378		)
Cost of repurchased stock	(26,320		)	—			—			—			(26,320		)
Total stockholders’ equity attributable to Altria Group, Inc.	4,119			3,361			10,854			(14,215		)	4,119
Noncontrolling interests	—			—			(1		)	—			(1		)
Total stockholders’ equity	4,119			3,361			10,853			(14,215		)	4,118
Total Liabilities and Stockholders’ Equity	$	26,444		$	9,898		$	23,423		$	(24,906	)	$	34,859

Condensed Consolidating Balance Sheets

(in millions of dollars)

____________________________

at December 31, 2012	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	2,862	$	—	$	38	$	—		$	2,900
Receivables	101		7		85		—			193
Inventories:
Leaf tobacco	—		512		364		—			876
Other raw materials	—		127		46		—			173
Work in process	—		3		346		—			349
Finished product	—		117		231		—			348
	—		759		987		—			1,746
Due from Altria Group, Inc. and subsidiaries	834		3,424		1,171		(5,429		)	—
Deferred income taxes	—		1,246		16		(46		)	1,216
Other current assets	—		193		175		(108		)	260
Total current assets	3,797		5,629		2,472		(5,583		)	6,315
Property, plant and equipment, at cost	2		3,253		1,495		—			4,750
Less accumulated depreciation	2		2,073		573		—			2,648
	—		1,180		922		—			2,102
Goodwill	—		—		5,174		—			5,174
Other intangible assets, net	—		2		12,076		—			12,078
Investment in SABMiller	6,637		—		—		—			6,637
Investment in consolidated subsidiaries	9,521		3,018		—		(12,539		)	—
Finance assets, net	—		—		2,581		—			2,581
Due from Altria Group, Inc. and subsidiaries	4,500		—		—		(4,500		)	—
Other assets	136		530		141		(365		)	442
Total Assets	$	24,591	$	10,359	$	23,366	$	(22,987	)	$	35,329

Condensed Consolidating Balance Sheets (Continued)

(in millions of dollars)

____________________________

at December 31, 2012	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Liabilities
Current portion of long-term debt	$	1,459		$	—		$	—		$	—		$	1,459
Accounts payable	4			155			292			—			451
Accrued liabilities:
Marketing	—			526			42			—			568
Employment costs	27			10			147			—			184
Settlement charges	—			3,610			6			—			3,616
Other	469			506			272			(154		)	1,093
Dividends payable	888			—			—			—			888
Due to Altria Group, Inc. and subsidiaries	3,965			409			1,055			(5,429		)	—
Total current liabilities	6,812			5,216			1,814			(5,583		)	8,259
Long-term debt	12,120			—			299			—			12,419
Deferred income taxes	2,034			—			4,983			(365		)	6,652
Accrued pension costs	235			—			1,500			—			1,735
Accrued postretirement health care costs	—			1,759			745			—			2,504
Due to Altria Group, Inc. and subsidiaries	—			—			4,500			(4,500		)	—
Other liabilities	222			178			156			—			556
Total Liabilities	21,423			7,153			13,997			(10,448		)	32,125
Contingencies
Redeemable noncontrolling interest	—			—			34			—			34
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,688			3,321			10,272			(13,593		)	5,688
Earnings reinvested in the business	24,316			314			943			(1,257		)	24,316
Accumulated other comprehensive losses	(2,040		)	(429		)	(1,891		)	2,320			(2,040		)
Cost of repurchased stock	(25,731		)	—			—			—			(25,731		)
Total stockholders’ equity attributable to Altria Group, Inc.	3,168			3,206			9,333			(12,539		)	3,168
Noncontrolling interests	—			—			2			—			2
Total stockholders’ equity	3,168			3,206			9,335			(12,539		)	3,170
Total Liabilities and Stockholders’ Equity	$	24,591		$	10,359		$	23,366		$	(22,987	)	$	35,329

Condensed Consolidating Statements of Earnings

for the year ended December 31, 2013	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	21,231		$	3,269	$	(34	)	$	24,466
Cost of sales	—			6,281			959		(34		)	7,206
Excise taxes on products	—			6,553			250		—			6,803
Gross profit	—			8,397			2,060		—			10,457
Marketing, administration and research costs	223			1,837			260		—			2,320
Changes to Mondelēz & PMI tax-related receivables/payables	25			(3		)	—		—			22
Asset impairment and exit costs	—			3			8		—			11
Amortization of intangibles	—			—			20		—			20
Operating (expense) income	(248		)	6,560			1,772		—			8,084
Interest and other debt expense, net	643			2			404		—			1,049
Loss on early extinguishment of debt	1,084			—			—		—			1,084
Earnings from equity investment in SABMiller	(991		)	—			—		—			(991		)
(Loss) earnings before income taxes and equity earnings of subsidiaries	(984		)	6,558			1,368		—			6,942
(Benefit) provision for income taxes	(488		)	2,406			489		—			2,407
Equity earnings of subsidiaries	5,031			216			—		(5,247		)	—
Net earnings	4,535			4,368			879		(5,247		)	4,535
Net earnings attributable to noncontrolling interests	—			—			—		—			—
Net earnings attributable to Altria Group, Inc.	$	4,535		$	4,368		$	879	$	(5,247	)	$	4,535
Net earnings	$	4,535		$	4,368		$	879	$	(5,247	)	$	4,535
Other comprehensive earnings, net of deferred income taxes	662			198			910		(1,108		)	662
Comprehensive earnings	5,197			4,566			1,789		(6,355		)	5,197
Comprehensive earnings attributable to noncontrolling interests	—			—			—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	5,197		$	4,566		$	1,789	$	(6,355	)	$	5,197

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

(in millions of dollars)

_____________________________

for the year ended December 31, 2012	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	21,531		$	3,110		$	(23	)	$	24,618
Cost of sales	—			7,067			893			(23		)	7,937
Excise taxes on products	—			6,831			287			—			7,118
Gross profit	—			7,633			1,930			—			9,563
Marketing, administration and research costs	210			1,867			204			—			2,281
Changes to Mondelēz and PMI tax-related receivables/payables	(52		)	—			—			—			(52		)
Asset impairment and exit costs	1			59			1			—			61
Amortization of intangibles	—			—			20			—			20
Operating (expense) income	(159		)	5,707			1,705			—			7,253
Interest and other debt expense (income), net	705			(3		)	424			—			1,126
Loss on early extinguishment of debt	874			—			—			—			874
Earnings from equity investment in SABMiller	(1,224		)	—			—			—			(1,224		)
(Loss) earnings before income taxes and equity earnings of subsidiaries	(514		)	5,710			1,281			—			6,477
(Benefit) provision for income taxes	(196		)	2,100			390			—			2,294
Equity earnings of subsidiaries	4,498			218			—			(4,716		)	—
Net earnings	4,180			3,828			891			(4,716		)	4,183
Net earnings attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Net earnings attributable to Altria Group, Inc.	$	4,180		$	3,828		$	888		$	(4,716	)	$	4,180
Net earnings	$	4,180		$	3,828		$	891		$	(4,716	)	$	4,183
Other comprehensive losses, net of deferred income taxes	(153		)	(117		)	(242		)	359			(153		)
Comprehensive earnings	4,027			3,711			649			(4,357		)	4,030
Comprehensive earnings attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Comprehensive earnings attributable to Altria Group, Inc.	$	4,027		$	3,711		$	646		$	(4,357	)	$	4,027

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

(in millions of dollars)

_____________________________

for the year ended December 31, 2011	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	21,330		$	2,496		$	(26	)	$	23,800
Cost of sales	—			6,883			823			(26		)	7,680
Excise taxes on products	—			6,846			335			—			7,181
Gross profit	—			7,601			1,338			—			8,939
Marketing, administration and research costs	186			2,164			293			—			2,643
Changes to Mondelēz and PMI tax-related receivables/payables	(14		)	—			—			—			(14		)
Asset impairment and exit costs	8			200			14			—			222
Amortization of intangibles	—			—			20			—			20
Operating (expense) income	(180		)	5,237			1,011			—			6,068
Interest and other debt expense, net	698			61			457			—			1,216
Earnings from equity investment in SABMiller	(730		)	—			—			—			(730		)
(Loss) earnings before income taxes and equity earnings of subsidiaries	(148		)	5,176			554			—			5,582
(Benefit) provision for income taxes	(199		)	1,930			458			—			2,189
Equity earnings of subsidiaries	3,339			153			—			(3,492		)	—
Net earnings	3,390			3,399			96			(3,492		)	3,393
Net earnings attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Net earnings attributable to Altria Group, Inc.	$	3,390		$	3,399		$	93		$	(3,492	)	$	3,390
Net earnings	$	3,390		$	3,399		$	96		$	(3,492	)	$	3,393
Other comprehensive losses, net of deferred income taxes	(403		)	(36		)	(209		)	245			(403		)
Comprehensive earnings (losses)	2,987			3,363			(113		)	(3,247		)	2,990
Comprehensive earnings attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Comprehensive earnings attributable to Altria Group, Inc.	$	2,987		$	3,363		$	(116	)	$	(3,247	)	$	2,987

Condensed Consolidating Statements of Cash Flows

for the year ended December 31, 2013	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by Operating Activities
Net cash provided by operating activities	$	4,520		$	4,192		$	387		$	(4,724	)	$	4,375
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(31		)	(100		)	—			(131		)
Proceeds from finance assets	—			—			716			—			716
Other	—			—			17			—			17
Net cash (used in) provided by investing activities	—			(31		)	633			—			602
Cash Provided by (Used in) Financing Activities
Long-term debt issued	4,179			—			—			—			4,179
Long-term debt repaid	(3,559		)	—			—			—			(3,559		)
Repurchases of common stock	(634		)	—			—			—			(634		)
Dividends paid on common stock	(3,612		)	—			—			—			(3,612		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	432			240			(672		)	—			—
Financing fees and debt issuance costs	(39		)	—			—			—			(39		)
Tender premiums and fees related to early extinguishment of debt	(1,054		)	—			—			—			(1,054		)
Cash dividends paid to parent	—			(4,400		)	(324		)	4,724			—
Other	19			—			(2		)	—			17
Net cash used in financing activities	(4,268		)	(4,160		)	(998		)	4,724			(4,702		)
Cash and cash equivalents:
Increase	252			1			22			—			275
Balance at beginning of year	2,862			—			38			—			2,900
Balance at end of year	$	3,114		$	1		$	60		$	—		$	3,175

Condensed Consolidating Statements of Cash Flows

(in millions of dollars)

_____________________________

for the year ended December 31, 2012	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by Operating Activities
Net cash provided by operating activities	$	3,063		$	4,200		$	549		$	(3,927	)	$	3,885
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(35		)	(89		)	—			(124		)
Proceeds from finance assets	—			—			1,049			—			1,049
Other	—			—			(5		)	—			(5		)
Net cash (used in) provided by investing activities	—			(35		)	955			—			920
Cash Provided by (Used in) Financing Activities
Long-term debt issued	2,787			—			—			—			2,787
Long-term debt repaid	(2,000		)	—			(600		)	—			(2,600		)
Repurchases of common stock	(1,082		)	—			—			—			(1,082		)
Dividends paid on common stock	(3,400		)	—			—			—			(3,400		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	1,128			(475		)	(653		)	—			—
Financing fees and debt issuance costs	(22		)	—			—			—			(22		)
Tender premiums and fees related to early extinguishment  of debt	(864		)	—			—			—			(864		)
Cash dividends paid to parent	—			(3,690		)	(237		)	3,927			—
Other	7			—			(1		)	—			6
Net cash used in financing activities	(3,446		)	(4,165		)	(1,491		)	3,927			(5,175		)
Cash and cash equivalents:
(Decrease) increase	(383		)	—			13			—			(370		)
Balance at beginning of year	3,245			—			25			—			3,270
Balance at end of year	$	2,862		$	—		$	38		$	—		$	2,900

Condensed Consolidating Statements of Cash Flows

(in millions of dollars)

_____________________________

for the year ended December 31, 2011	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by Operating Activities
Net cash provided by operating activities	$	3,515		$	3,719		$	226		$	(3,879	)	$	3,581
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(26		)	(79		)	—			(105		)
Proceeds from finance assets	—			—			490			—			490
Other	—			1			1			—			2
Net cash (used in) provided by investing activities	—			(25		)	412			—			387
Cash Provided by (Used in) Financing Activities
Long-term debt issued	1,494			—			—			—			1,494
Repurchases of common stock	(1,327		)	—			—			—			(1,327		)
Dividends paid on common stock	(3,222		)	—			—			—			(3,222		)
Issuances of common stock	29			—			—			—			29
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	441			(28		)	(413		)	—			—
Financing fees and debt issuance costs	(24		)	—			—			—			(24		)
Cash dividends paid to parent	—			(3,666		)	(213		)	3,879			—
Other	41			—			(3		)	—			38
Net cash used in financing activities	(2,568		)	(3,694		)	(629		)	3,879			(3,012		)
Cash and cash equivalents:
Increase	947			—			9			—			956
Balance at beginning of year	2,298			—			16			—			2,314
Balance at end of year	$	3,245		$	—		$	25		$	—		$	3,270