Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheets

June 30, 2015

(in millions of dollars)

	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	1,077	$	1	$	45	$	—		$	1,123
Receivables	—		4		138		—			142
Inventories:
Leaf tobacco	—		494		371		—			865
Other raw materials	—		131		70		—			201
Work in process	—		10		357		—			367
Finished product	—		167		314		—			481
	—		802		1,112		—			1,914
Due from Altria Group, Inc. and subsidiaries	—		2,686		1,192		(3,878		)	—
Deferred income taxes	1		1,189		9		(56		)	1,143
Other current assets	179		82		58		(8		)	311
Total current assets	1,257		4,764		2,554		(3,942		)	4,633
Property, plant and equipment, at cost	—		3,103		1,702		—			4,805
Less accumulated depreciation	—		2,116		698		—			2,814
	—		987		1,004		—			1,991
Goodwill	—		—		5,285		—			5,285
Other intangible assets, net	—		2		12,037		—			12,039
Investment in SABMiller	6,117		—		—		—			6,117
Investment in consolidated subsidiaries	11,404		2,769		—		(14,173		)	—
Finance assets, net	—		—		1,339		—			1,339
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	141		543		105		(324		)	465
Total Assets	$	23,709	$	9,065	$	22,324	$	(23,229	)	$	31,869

Condensed Consolidating Balance Sheets (Continued)

June 30, 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		$	—		$	3		$	—		$	1,003
Accounts payable	19			147			124			—			290
Accrued liabilities:
Marketing	—			588			86			—			674
Employment costs	14			9			81			—			104
Settlement charges	—			2,199			7			—			2,206
Other	322			467			236			(64		)	961
Dividends payable	1,023			—			—			—			1,023
Due to Altria Group, Inc. and subsidiaries	3,503			374			1			(3,878		)	—
Total current liabilities	5,881			3,784			538			(3,942		)	6,261
Long-term debt	12,901			—			16			—			12,917
Deferred income taxes	1,732			—			4,603			(324		)	6,011
Accrued pension costs	231			—			714			—			945
Accrued postretirement health care costs	—			1,588			863			—			2,451
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	185			139			151			—			475
Total liabilities	20,930			5,511			11,675			(9,056		)	29,060
Contingencies
Redeemable noncontrolling interest	—			—			36			—			36
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,768			3,310			11,339			(14,649		)	5,768
Earnings reinvested in the business	26,698			578			824			(1,402		)	26,698
Accumulated other comprehensive losses	(2,878		)	(334		)	(1,553		)	1,887			(2,878		)
Cost of repurchased stock	(27,744		)	—			—			—			(27,744		)
Total stockholders’ equity attributable to Altria Group, Inc.	2,779			3,554			10,619			(14,173		)	2,779
Noncontrolling interests	—			—			(6		)	—			(6		)
Total stockholders’ equity	2,779			3,554			10,613			(14,173		)	2,773
Total Liabilities and Stockholders’ Equity	$	23,709		$	9,065		$	22,324		$	(23,229	)	$	31,869

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

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Six Months Ended June 30, 2015

(in millions of dollars)

	Altria Group, Inc.			PM USA		Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	10,878	$	1,560		$	(21	)	$	12,417
Cost of sales	—			3,312		510			(21		)	3,801
Excise taxes on products	—			3,164		106			—			3,270
Gross profit	—			4,402		944			—			5,346
Marketing, administration and research costs	89			959		205			—			1,253
Asset impairment and exit costs	—			—		4			—			4
Operating (expense) income	(89		)	3,443		735			—			4,089
Interest and other debt expense, net	292			—		112			—			404
Loss on early extinguishment of debt	228			—		—			—			228
Earnings from equity investment in SABMiller	(359		)	—		—			—			(359		)
(Loss) Earnings before income taxes and equity earnings of subsidiaries	(250		)	3,443		623			—			3,816
(Benefit) provision for income taxes	(145		)	1,274		220			—			1,349
Equity earnings of subsidiaries	2,571			126		—			(2,697		)	—
Net earnings	2,466			2,295		403			(2,697		)	2,467
Net earnings attributable to noncontrolling interests	—			—		(1		)	—			(1		)
Net earnings attributable to Altria Group, Inc.	$	2,466		$	2,295	$	402		$	(2,697	)	$	2,466
Net earnings	$	2,466		$	2,295	$	403		$	(2,697	)	$	2,467
Other comprehensive (losses) earnings, net of deferred income taxes	(196		)	7		70			(77		)	(196		)
Comprehensive earnings	2,270			2,302		473			(2,774		)	2,271
Comprehensive earnings attributable to noncontrolling interests	—			—		(1		)	—			(1		)
Comprehensive earnings attributable to Altria Group, Inc.	$	2,270		$	2,302	$	472		$	(2,774	)	$	2,270

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Six Months Ended June 30, 2014

(in millions of dollars)

	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	10,261		$	1,534	$	(22	)	$	11,773
Cost of sales	—			3,247			495		(22		)	3,720
Excise taxes on products	—			3,089			105		—			3,194
Gross profit	—			3,925			934		—			4,859
Marketing, administration and research costs	104			867			187		—			1,158
Asset impairment and exit costs	—			(8		)	—		—			(8		)
Operating (expense) income	(104		)	3,066			747		—			3,709
Interest and other debt expense (income), net	308			(47		)	122		—			383
Earnings from equity investment in SABMiller	(425		)	—			—		—			(425		)
Earnings before income taxes and equity earnings of subsidiaries	13			3,113			625		—			3,751
(Benefit) provision for income taxes	(65		)	1,154			225		—			1,314
Equity earnings of subsidiaries	2,359			117			—		(2,476		)	—
Net earnings	2,437			2,076			400		(2,476		)	2,437
Net earnings attributable to noncontrolling interests	—			—			—		—			—
Net earnings attributable to Altria Group, Inc.	$	2,437		$	2,076		$	400	$	(2,476	)	$	2,437
Net earnings	$	2,437		$	2,076		$	400	$	(2,476	)	$	2,437
Other comprehensive earnings, net of deferred income taxes	149			5			42		(47		)	149
Comprehensive earnings	2,586			2,081			442		(2,523		)	2,586
Comprehensive earnings attributable to noncontrolling interests	—			—			—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	2,586		$	2,081		$	442	$	(2,523	)	$	2,586

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended June 30, 2015

(in millions of dollars)

	Altria Group, Inc.			PM USA		Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	5,810	$	815		$	(12	)	$	6,613
Cost of sales	—			1,746		270			(12		)	2,004
Excise taxes on products	—			1,684		54			—			1,738
Gross profit	—			2,380		491			—			2,871
Marketing, administration and research costs	47			494		102			—			643
Asset impairment and exit costs	—			—		4			—			4
Operating (expense) income	(47		)	1,886		385			—			2,224
Interest and other debt expense, net	138			1		56			—			195
Earnings from equity investment in SABMiller	(225		)	—		—			—			(225		)
Earnings before income taxes and equity earnings of subsidiaries	40			1,885		329			—			2,254
(Benefit) provision for income taxes	(2		)	690		117			—			805
Equity earnings of subsidiaries	1,406			65		—			(1,471		)	—
Net earnings	1,448			1,260		212			(1,471		)	1,449
Net earnings attributable to noncontrolling interests	—			—		(1		)	—			(1		)
Net earnings attributable to Altria Group, Inc.	$	1,448		$	1,260	$	211		$	(1,471	)	$	1,448
Net earnings	$	1,448		$	1,260	$	212		$	(1,471	)	$	1,449
Other comprehensive earnings, net of deferred income taxes	67			3		35			(38		)	67
Comprehensive earnings	1,515			1,263		247			(1,509		)	1,516
Comprehensive earnings attributable to noncontrolling interests	—			—		(1		)	—			(1		)
Comprehensive earnings attributable to Altria Group, Inc.	$	1,515		$	1,263	$	246		$	(1,509	)	$	1,515

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended June 30, 2014

(in millions of dollars)

	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	5,443		$	831	$	(18	)	$	6,256
Cost of sales	—			1,706			280		(18		)	1,968
Excise taxes on products	—			1,629			56		—			1,685
Gross profit	—			2,108			495		—			2,603
Marketing, administration and research costs	65			465			108		—			638
Asset impairment and exit costs	—			(10		)	—		—			(10		)
Operating (expense) income	(65		)	1,653			387		—			1,975
Interest and other debt expense, net	152			17			61		—			230
Earnings from equity investment in SABMiller	(200		)	—			—		—			(200		)
(Loss) earnings before income taxes and equity earnings of subsidiaries	(17		)	1,636			326		—			1,945
(Benefit) provision for income taxes	(42		)	607			118		—			683
Equity earnings of subsidiaries	1,237			64			—		(1,301		)	—
Net earnings	1,262			1,093			208		(1,301		)	1,262
Net earnings attributable to noncontrolling interests	—			—			—		—			—
Net earnings attributable to Altria Group, Inc.	$	1,262		$	1,093		$	208	$	(1,301	)	$	1,262
Net earnings	$	1,262		$	1,093		$	208	$	(1,301	)	$	1,262
Other comprehensive earnings, net of deferred income taxes	89			3			20		(23		)	89
Comprehensive earnings	1,351			1,096			228		(1,324		)	1,351
Comprehensive earnings attributable to noncontrolling interests	—			—			—		—			—
Comprehensive earnings attributable to Altria Group, Inc.	$	1,351		$	1,096		$	228	$	(1,324	)	$	1,351

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the Six Months Ended June 30, 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	$	2,316		$	1,312		$	311		$	(2,692	)	$	1,247
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(25		)	(74		)	—			(99		)
Proceeds from finance assets	—			—			185			—			185
Other	—			10			(9		)	—			1
Net cash (used in) provided by investing activities	—			(15		)	102			—			87
Cash Provided by (Used in) Financing Activities
Long-term debt repaid	(793		)	—			—			—			(793		)
Repurchases of common stock	(455		)	—			—			—			(455		)
Dividends paid on common stock	(2,050		)	—			—			—			(2,050		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	(996		)	820			176			—			—
Premiums and fees related to early extinguishment of debt	(226		)	—			—			—			(226		)
Cash dividends paid to parent	—			(2,119		)	(573		)	2,692			—
Other	—			—			(8		)	—			(8		)
Net cash used in financing activities	(4,520		)	(1,299		)	(405		)	2,692			(3,532		)
Cash and cash equivalents:
(Decrease) increase	(2,204		)	(2		)	8			—			(2,198		)
Balance at beginning of period	3,281			3			37			—			3,321
Balance at end of period	$	1,077		$	1		$	45		$	—		$	1,123

Condensed Consolidating Statements of Cash Flows

For the Six Months Ended June 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	$	2,121		$	846		$	223		$	(2,431	)	$	759
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(21		)	(39		)	—			(60		)
Acquisition of Green Smoke, net of acquired cash	—			—			(93		)	—			(93		)
Proceeds from finance assets	—			—			189			—			189
Other	—			70			(4		)	—			66
Net cash provided by investing activities	—			49			53			—			102
Cash Provided by (Used in) Financing Activities
Long-term debt repaid	(525		)	—			—			—			(525		)
Repurchases of common stock	(404		)	—			—			—			(404		)
Dividends paid on common stock	(1,912		)	—			—			—			(1,912		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	(1,248		)	1,042			206			—			—
Cash dividends paid to parent	—			(1,938		)	(493		)	2,431			—
Other	—			—			(2		)	—			(2		)
Net cash used in financing activities	(4,089		)	(896		)	(289		)	2,431			(2,843		)
Cash and cash equivalents:
Decrease	(1,968		)	(1		)	(13		)	—			(1,982		)
Balance at beginning of period	3,114			1			60			—			3,175
Balance at end of period	$	1,146		$	—		$	47		$	—		$	1,193