Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheets

September 30, 2014

(in millions of dollars)

	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	2,203	$	—	$	38	$	—		$	2,241
Receivables	1		3		102		—			106
Inventories:
Leaf tobacco	—		509		329		—			838
Other raw materials	—		124		66		—			190
Work in process	—		8		339		—			347
Finished product	—		169		346		—			515
	—		810		1,080		—			1,890
Due from Altria Group, Inc. and subsidiaries	597		3,224		1,887		(5,708		)	—
Deferred income taxes	—		1,132		32		(69		)	1,095
Other current assets	116		197		57		(40		)	330
Total current assets	2,917		5,366		3,196		(5,817		)	5,662
Property, plant and equipment, at cost	—		3,236		1,615		—			4,851
Less accumulated depreciation	—		2,183		670		—			2,853
	—		1,053		945		—			1,998
Goodwill	—		—		5,285		—			5,285
Other intangible assets, net	—		2		12,052		—			12,054
Investment in SABMiller	6,640		—		—		—			6,640
Investment in consolidated subsidiaries	11,797		2,990		—		(14,787		)	—
Finance assets, net	—		—		1,773		—			1,773
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	147		456		310		(243		)	670
Total Assets	$	26,291	$	9,867	$	23,561	$	(25,637	)	$	34,082

Condensed Consolidating Balance Sheets (Continued)

September 30, 2014

(in millions of dollars)

	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Liabilities
Current portion of long-term debt	$	1,000		$	—		$	300		$	—		$	1,300
Accounts payable	25			112			195			—			332
Accrued liabilities:
Marketing	—			488			79			—			567
Employment costs	15			9			117			—			141
Settlement charges	—			3,132			7			—			3,139
Other	300			436			230			(109		)	857
Dividends payable	1,031			—			—			—			1,031
Due to Altria Group, Inc. and subsidiaries	4,609			500			599			(5,708		)	—
Total current liabilities	6,980			4,677			1,527			(5,817		)	7,367
Long-term debt	12,693			—			—			—			12,693
Deferred income taxes	1,952			—			5,120			(243		)	6,829
Accrued pension costs	197			—			18			—			215
Accrued postretirement health care costs	—			1,410			740			—			2,150
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	175			171			156			—			502
Total liabilities	21,997			6,258			12,351			(10,850		)	29,756
Contingencies
Redeemable noncontrolling interest	—			—			35			—			35
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,723			3,310			10,568			(13,878		)	5,723
Earnings reinvested in the business	26,066			525			1,522			(2,047		)	26,066
Accumulated other comprehensive losses	(1,454		)	(226		)	(921		)	1,147			(1,454		)
Cost of repurchased stock	(26,976		)	—			—			—			(26,976		)
Total stockholders’ equity attributable to Altria Group, Inc.	4,294			3,609			11,178			(14,787		)	4,294
Noncontrolling interests	—			—			(3		)	—			(3		)
Total stockholders’ equity	4,294			3,609			11,175			(14,787		)	4,291
Total Liabilities and Stockholders’ Equity	$	26,291		$	9,867		$	23,561		$	(25,637	)	$	34,082

Condensed Consolidating Balance Sheets

December 31, 2013

(in millions of dollars)

	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)

December 31, 2013

(in millions of dollars)

	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 Statements of Earnings and Comprehensive Earnings

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Nine Months Ended September 30, 2014

(in millions of dollars)

	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	15,945		$	2,352	$	(33	)	$	18,264
Cost of sales	—			5,059			773		(33		)	5,799
Excise taxes on products	—			4,771			161		—			4,932
Gross profit	—			6,115			1,418		—			7,533
Marketing, administration and research costs	161			1,362			298		—			1,821
Changes to Mondelēz and PMI tax-related receivables/payables	5			—			—		—			5
Asset impairment and exit costs	—			(6		)	5		—			(1		)
Operating (expense) income	(166		)	4,759			1,115		—			5,708
Interest and other debt expense (income), net	458			(46		)	184		—			596
Earnings from equity investment in SABMiller	(753		)	—			—		—			(753		)
Earnings before income taxes and equity earnings of subsidiaries	129			4,805			931		—			5,865
(Benefit) provision for income taxes	(118		)	1,813			336		—			2,031
Equity earnings of subsidiaries	3,587			184			—		(3,771		)	—
Net earnings	3,834			3,176			595		(3,771		)	3,834
Net earnings attributable to noncontrolling interests	—			—			—		—			—
Net earnings attributable to Altria Group, Inc.	$	3,834		$	3,176		$	595	$	(3,771	)	$	3,834
Net earnings	$	3,834		$	3,176		$	595	$	(3,771	)	$	3,834
Other comprehensive (losses) earnings, net of deferred income taxes	(76		)	5			60		(65		)	(76		)
Comprehensive earnings	3,758			3,181			655		(3,836		)	3,758
Comprehensive earnings attributable to noncontrolling interests	—			—			—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	3,758		$	3,181		$	655	$	(3,836	)	$	3,758

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Nine Months Ended September 30, 2013

(in millions of dollars)

	Altria Group, Inc.			PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	15,967	$	2,436	$	(17	)	$	18,386
Cost of sales	—			4,550		677		(17		)	5,210
Excise taxes on products	—			4,936		191		—			5,127
Gross profit	—			6,481		1,568		—			8,049
Marketing, administration and research costs	155			1,384		199		—			1,738
Changes to Mondelēz and PMI tax-related receivables/payables	25			—		—		—			25
Asset impairment and exit costs	—			1		—		—			1
Operating (expense) income	(180		)	5,096		1,369		—			6,285
Interest and other debt expense, net	490			2		302		—			794
Earnings from equity investment in SABMiller	(738		)	—		—		—			(738		)
Earnings before income taxes and equity earnings of subsidiaries	68			5,094		1,067		—			6,229
(Benefit) provision for income taxes	(89		)	1,890		381		—			2,182
Equity earnings of subsidiaries	3,890			163		—		(4,053		)	—
Net earnings	4,047			3,367		686		(4,053		)	4,047
Net earnings attributable to noncontrolling interests	—			—		—		—			—
Net earnings attributable to Altria Group, Inc.	$	4,047		$	3,367	$	686	$	(4,053	)	$	4,047
Net earnings	$	4,047		$	3,367	$	686	$	(4,053	)	$	4,047
Other comprehensive (losses) earnings, net of deferred income taxes	(183		)	16		139		(155		)	(183		)
Comprehensive earnings	3,864			3,383		825		(4,208		)	3,864
Comprehensive earnings attributable to noncontrolling interests	—			—		—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	3,864		$	3,383	$	825	$	(4,208	)	$	3,864

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended September 30, 2014

(in millions of dollars)

	Altria Group, Inc.			PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	5,684	$	818	$	(11	)	$	6,491
Cost of sales	—			1,812		278		(11		)	2,079
Excise taxes on products	—			1,682		56		—			1,738
Gross profit	—			2,190		484		—			2,674
Marketing, administration and research costs	57			495		111		—			663
Changes to Mondelēz and PMI tax-related receivables/payables	5			—		—		—			5
Asset impairment and exit costs	—			2		5		—			7
Operating (expense) income	(62		)	1,693		368		—			1,999
Interest and other debt expense, net	150			1		62		—			213
Earnings from equity investment in SABMiller	(328		)	—		—		—			(328		)
Earnings before income taxes and equity earnings of subsidiaries	116			1,692		306		—			2,114
(Benefit) provision for income taxes	(53		)	659		111		—			717
Equity earnings of subsidiaries	1,228			67		—		(1,295		)	—
Net earnings	1,397			1,100		195		(1,295		)	1,397
Net earnings attributable to noncontrolling interests	—			—		—		—			—
Net earnings attributable to Altria Group, Inc.	$	1,397		$	1,100	$	195	$	(1,295	)	$	1,397
Net earnings	$	1,397		$	1,100	$	195	$	(1,295	)	$	1,397
Other comprehensive (losses) earnings, net of deferred income taxes	(225		)	—		18		(18		)	(225		)
Comprehensive earnings	1,172			1,100		213		(1,313		)	1,172
Comprehensive earnings attributable to noncontrolling interests	—			—		—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	1,172		$	1,100	$	213	$	(1,313	)	$	1,172

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended September 30, 2013

(in millions of dollars)

	Altria Group, Inc.			PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	5,627	$	932	$	(6	)	$	6,553
Cost of sales	—			1,698		247		(6		)	1,939
Excise taxes on products	—			1,728		65		—			1,793
Gross profit	—			2,201		620		—			2,821
Marketing, administration and research costs	60			517		87		—			664
Changes to Mondelēz and PMI tax-related receivables/payables	25			—		—		—			25
Asset impairment and exit costs	—			—		—		—			—
Operating (expense) income	(85		)	1,684		533		—			2,132
Interest and other debt expense, net	166			3		100		—			269
Earnings from equity investment in SABMiller	(255		)	—		—		—			(255		)
Earnings before income taxes and equity earnings of subsidiaries	4			1,681		433		—			2,118
(Benefit) provision for income taxes	(63		)	628		157		—			722
Equity earnings of subsidiaries	1,329			61		—		(1,390		)	—
Net earnings	1,396			1,114		276		(1,390		)	1,396
Net earnings attributable to noncontrolling interests	—			—		—		—			—
Net earnings attributable to Altria Group, Inc.	$	1,396		$	1,114	$	276	$	(1,390	)	$	1,396
Net earnings	$	1,396		$	1,114	$	276	$	(1,390	)	$	1,396
Other comprehensive earnings, net of deferred income taxes	107			4		41		(45		)	107
Comprehensive earnings	1,503			1,118		317		(1,435		)	1,503
Comprehensive earnings attributable to noncontrolling interests	—			—		—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	1,503		$	1,118	$	317	$	(1,435	)	$	1,503

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2014

(in millions of dollars)

	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by Operating Activities
Net cash provided by operating activities	$	3,270		$	2,839		$	455		$	(3,504	)	$	3,060
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(33		)	(83		)	—			(116		)
Acquisition of Green Smoke, net of acquired cash	—			—			(93		)	—			(93		)
Proceeds from finance assets	—			—			190			—			190
Other	—			70			9			—			79
Net cash provided by investing activities	—			37			23			—			60
Cash Provided by (Used in) Financing Activities
Long-term debt repaid	(525		)	—			—			—			(525		)
Repurchases of common stock	(679		)	—			—			—			(679		)
Dividends paid on common stock	(2,864		)	—			—			—			(2,864		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	(130		)	56			74			—			—
Financing fees and debt issuance costs	(1		)	—			—			—			(1		)
Cash dividends paid to parent	—			(2,933		)	(571		)	3,504			—
Other	18			—			(3		)	—			15
Net cash used in financing activities	(4,181		)	(2,877		)	(500		)	3,504			(4,054		)
Cash and cash equivalents:
Decrease	(911		)	(1		)	(22		)	—			(934		)
Balance at beginning of period	3,114			1			60			—			3,175
Balance at end of period	$	2,203		$	—		$	38		$	—		$	2,241

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2013

(in millions of dollars)

	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by Operating Activities
Net cash provided by operating activities	$	3,349		$	2,948		$	270		$	(3,708	)	$	2,859
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(18		)	(72		)	—			(90		)
Proceeds from finance assets	—			—			559			—			559
Other	—			—			16			—			16
Net cash (used in) provided by investing activities	—			(18		)	503			—			485
Cash Provided by (Used in) Financing Activities
Long-term debt issued	996			—			—			—			996
Repurchases of common stock	(382		)	—			—			—			(382		)
Dividends paid on common stock	(2,652		)	—			—			—			(2,652		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	(11		)	517			(506		)	—			—
Financing fees and debt issuance costs	(12		)	—			—			—			(12		)
Cash dividends paid to parent	—			(3,447		)	(261		)	3,708			—
Other	19			—			(2		)	—			17
Net cash used in financing activities	(2,042		)	(2,930		)	(769		)	3,708			(2,033		)
Cash and cash equivalents:
Increase	1,307			—			4			—			1,311
Balance at beginning of period	2,862			—			38			—			2,900
Balance at end of period	$	4,169		$	—		$	42		$	—		$	4,211