Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

March 31, 2015

(in millions of dollars)



	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	3,639	$	—	$	35	$	—		$	3,674
Receivables	—		4		168		—			172
Inventories:
Leaf tobacco	—		624		395		—			1,019
Other raw materials	—		129		71		—			200
Work in process	—		10		400		—			410
Finished product	—		155		301		—			456
	—		918		1,167		—			2,085
Due from Altria Group, Inc. and subsidiaries	8		5,121		1,498		(6,627		)	—
Deferred income taxes	1		1,189		9		(56		)	1,143
Other current assets	250		66		90		(247		)	159
Total current assets	3,898		7,298		2,967		(6,930		)	7,233
Property, plant and equipment, at cost	—		3,113		1,671		—			4,784
Less accumulated depreciation	—		2,112		700		—			2,812
	—		1,001		971		—			1,972
Goodwill	—		—		5,285		—			5,285
Other intangible assets, net	—		2		12,042		—			12,044
Investment in SABMiller	5,850		—		—		—			5,850
Investment in consolidated subsidiaries	11,407		2,769		—		(14,176		)	—
Finance assets, net	—		—		1,360		—			1,360
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	145		534		115		(326		)	468
Total Assets	$	26,090	$	11,604	$	22,740	$	(26,222	)	$	34,212

Condensed Consolidating Balance Sheets (Continued)

March 31, 2015

(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		$	—		$	—		$	—		$	1,000
Accounts payable	19			125			130			—			274
Accrued liabilities:
Marketing	—			512			93			—			605
Employment costs	12			10			45			—			67
Settlement charges	—			4,544			7			—			4,551
Other	266			451			229			(56		)	890
Income taxes	—			508			221			(247		)	482
Dividends payable	1,026			—			—			—			1,026
Due to Altria Group, Inc. and subsidiaries	6,257			354			16			(6,627		)	—
Total current liabilities	8,580			6,504			741			(6,930		)	8,895
Long-term debt	12,901			—			—			—			12,901
Deferred income taxes	1,638			—			4,595			(326		)	5,907
Accrued pension costs	232			—			746			—			978
Accrued postretirement health care costs	—			1,598			856			—			2,454
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	206			152			157			—			515
Total liabilities	23,557			8,254			11,885			(12,046		)	31,650
Contingencies
Redeemable noncontrolling interest	—			—			34			—			34
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,754			3,310			11,338			(14,648		)	5,754
Earnings reinvested in the business	26,271			377			1,067			(1,444		)	26,271
Accumulated other comprehensive losses	(2,945		)	(337		)	(1,588		)	1,925			(2,945		)
Cost of repurchased stock	(27,482		)	—			—			—			(27,482		)
Total stockholders’ equity attributable to Altria Group, Inc.	2,533			3,350			10,826			(14,176		)	2,533
Noncontrolling interests	—			—			(5		)	—			(5		)
Total stockholders’ equity	2,533			3,350			10,821			(14,176		)	2,528
Total Liabilities and Stockholders’ Equity	$	26,090		$	11,604		$	22,740		$	(26,222	)	$	34,212

Condensed Consolidating Balance Sheets

December 31, 2014

(in millions of dollars)



	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	3,281	$	3	$	37	$	—		$	3,321
Receivables	—		6		118		—			124
Inventories:
Leaf tobacco	—		616		375		—			991
Other raw materials	—		132		68		—			200
Work in process	—		4		425		—			429
Finished product	—		134		286		—			420
	—		886		1,154		—			2,040
Due from Altria Group, Inc. and subsidiaries	568		3,535		1,279		(5,382		)	—
Deferred income taxes	—		1,190		9		(56		)	1,143
Other current assets	54		101		122		(27		)	250
Total current assets	3,903		5,721		2,719		(5,465		)	6,878
Property, plant and equipment, at cost	—		3,112		1,643		—			4,755
Less accumulated depreciation	—		2,091		681		—			2,772
	—		1,021		962		—			1,983
Goodwill	—		—		5,285		—			5,285
Other intangible assets, net	—		2		12,047		—			12,049
Investment in SABMiller	6,183		—		—		—			6,183
Investment in consolidated subsidiaries	10,665		2,775		—		(13,440		)	—
Finance assets, net	—		—		1,614		—			1,614
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	148		541		121		(327		)	483
Total Assets	$	25,689	$	10,060	$	22,748	$	(24,022	)	$	34,475

Condensed Consolidating Balance Sheets (Continued)

December 31, 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		$	—		$	—		$	—		$	1,000
Accounts payable	18			118			280			—			416
Accrued liabilities:
Marketing	—			505			113			—			618
Employment costs	18			10			158			—			186
Settlement charges	—			3,495			5			—			3,500
Other	321			400			287			(83		)	925
Dividends payable	1,028			—			—			—			1,028
Due to Altria Group, Inc. and subsidiaries	4,414			402			566			(5,382		)	—
Total current liabilities	6,799			4,930			1,409			(5,465		)	7,673
Long-term debt	13,693			—			—			—			13,693
Deferred income taxes	1,754			—			4,661			(327		)	6,088
Accrued pension costs	233			—			779			—			1,012
Accrued postretirement health care costs	—			1,608			853			—			2,461
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	196			151			156			—			503
Total liabilities	22,675			6,689			12,648			(10,582		)	31,430
Contingencies
Redeemable noncontrolling interest	—			—			35			—			35
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,735			3,310			10,688			(13,998		)	5,735
Earnings reinvested in the business	26,277			402			995			(1,397		)	26,277
Accumulated other comprehensive losses	(2,682		)	(341		)	(1,623		)	1,964			(2,682		)
Cost of repurchased stock	(27,251		)	—			—			—			(27,251		)
Total stockholders’ equity attributable to Altria Group, Inc.	3,014			3,371			10,069			(13,440		)	3,014
Noncontrolling interests	—			—			(4		)	—			(4		)
Total stockholders’ equity	3,014			3,371			10,065			(13,440		)	3,010
Total Liabilities and Stockholders’ Equity	$	25,689		$	10,060		$	22,748		$	(24,022	)	$	34,475

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended March 31, 2015

(in millions of dollars)



	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	5,068		$	745	$	(9	)	$	5,804
Cost of sales	—			1,566			240		(9		)	1,797
Excise taxes on products	—			1,480			52		—			1,532
Gross profit	—			2,022			453		—			2,475
Marketing, administration and research costs	42			465			103		—			610
Operating (expense) income	(42		)	1,557			350		—			1,865
Interest and other debt expense (income), net	154			(1		)	56		—			209
Loss on early extinguishment of debt	228			—			—		—			228
Earnings from equity investment in SABMiller	(134		)	—			—		—			(134		)
(Loss) earnings before income taxes and equity earnings of subsidiaries	(290		)	1,558			294		—			1,562
(Benefit) provision for income taxes	(143		)	584			103		—			544
Equity earnings of subsidiaries	1,165			61			—		(1,226		)	—
Net earnings	1,018			1,035			191		(1,226		)	1,018
Net earnings attributable to noncontrolling interests	—			—			—		—			—
Net earnings attributable to Altria Group, Inc.	$	1,018		$	1,035		$	191	$	(1,226	)	$	1,018


Net earnings	$	1,018		$	1,035		$	191	$	(1,226	)	$	1,018
Other comprehensive (losses) earnings, net of deferred income taxes	(263		)	4			35		(39		)	(263		)
Comprehensive earnings	755			1,039			226		(1,265		)	755
Comprehensive earnings attributable to noncontrolling interests	—			—			—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	755		$	1,039		$	226	$	(1,265	)	$	755

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended March 31, 2014

(in millions of dollars)



	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	4,818		$	703	$	(4	)	$	5,517
Cost of sales	—			1,541			215		(4		)	1,752
Excise taxes on products	—			1,460			49		—			1,509
Gross profit	—			1,817			439		—			2,256
Marketing, administration and research costs	39			402			79		—			520
Asset impairment and exit costs	—			2			—		—			2
Operating (expense) income	(39		)	1,413			360		—			1,734
Interest and other debt expense (income), net	156			(64		)	61		—			153
Earnings from equity investment in SABMiller	(225		)	—			—		—			(225		)
Earnings before income taxes and equity earnings of subsidiaries	30			1,477			299		—			1,806
(Benefit) provision for income taxes	(23		)	547			107		—			631
Equity earnings of subsidiaries	1,122			53			—		(1,175		)	—
Net earnings	1,175			983			192		(1,175		)	1,175
Net earnings attributable to noncontrolling interests	—			—			—		—			—
Net earnings attributable to Altria Group, Inc.	$	1,175		$	983		$	192	$	(1,175	)	$	1,175


Net earnings	$	1,175		$	983		$	192	$	(1,175	)	$	1,175
Other comprehensive earnings, net of deferred income taxes	60			2			22		(24		)	60
Comprehensive earnings	1,235			985			214		(1,199		)	1,235
Comprehensive earnings attributable to noncontrolling interests	—			—			—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	1,235		$	985		$	214	$	(1,199	)	$	1,235

Condensed Consolidating Statements of Cash Flows

For the Three Months Ended March 31, 2015

(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	$	845		$	2,696		$	136		$	(1,179	)	$	2,498
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(15		)	(33		)	—			(48		)
Proceeds from finance assets	—			—			147			—			147
Other	—			10			(10		)	—			—
Net cash (used in) provided by investing activities	—			(5		)	104			—			99
Cash Provided by (Used in) Financing Activities
Long-term debt repaid	(793		)	—			—			—			(793		)
Repurchases of common stock	(192		)	—			—			—			(192		)
Dividends paid on common stock	(1,026		)	—			—			—			(1,026		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	1,750			(1,634		)	(116		)	—			—
Premiums and fees related to early extinguishment of debt	(226		)	—			—			—			(226		)
Cash dividends paid to parent	—			(1,060		)	(119		)	1,179			—
Other	—			—			(7		)	—			(7		)
Net cash used in financing activities	(487		)	(2,694		)	(242		)	1,179			(2,244		)
Cash and cash equivalents:
Increase (decrease)	358			(3		)	(2		)	—			353
Balance at beginning of period	3,281			3			37			—			3,321
Balance at end of period	$	3,639		$	—		$	35		$	—		$	3,674

Condensed Consolidating Statements of Cash Flows

For the Three Months Ended March 31, 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	$	1,076		$	2,360		$	91		$	(1,402	)	$	2,125
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(8		)	(19		)	—			(27		)
Proceeds from finance assets	—			—			98			—			98
Other	—			4			1			—			5
Net cash (used in) provided by investing activities	—			(4		)	80			—			76
Cash Provided by (Used in) Financing Activities
Long-term debt repaid	(525		)	—			—			—			(525		)
Repurchases of common stock	(272		)	—			—			—			(272		)
Dividends paid on common stock	(957		)	—			—			—			(957		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	1,143			(1,391		)	248			—			—
Cash dividends paid to parent	—			(965		)	(437		)	1,402			—
Other	—			—			(2		)	—			(2		)
Net cash used in financing activities	(611		)	(2,356		)	(191		)	1,402			(1,756		)
Cash and cash equivalents:
Increase (decrease)	465			—			(20		)	—			445
Balance at beginning of period	3,114			1			60			—			3,175
Balance at end of period	$	3,579		$	1		$	40		$	—		$	3,620