Capital Stock

At December 31, 2015, Altria Group, Inc. had 12 billion shares of authorized common stock; issued, repurchased and outstanding shares of common stock were as follows:



	Shares Issued	Shares Repurchased		Shares Outstanding
Balances, December 31, 2012	2,805,961,317	(796,221,021	)	2,009,740,296
Stock award activity	—	391,899		391,899
Repurchases of common stock	—	(16,652,913	)	(16,652,913	)
Balances, December 31, 2013	2,805,961,317	(812,482,035	)	1,993,479,282
Stock award activity	—	447,840		447,840
Repurchases of common stock	—	(22,452,599	)	(22,452,599	)
Balances, December 31, 2014	2,805,961,317	(834,486,794	)	1,971,474,523
Stock award activity	—	(732,623	)	(732,623	)
Repurchases of common stock	—	(10,682,419	)	(10,682,419	)
Balances, December 31, 2015	2,805,961,317	(845,901,836	)	1,960,059,481

At December 31, 2015, 42,209,751 shares of common stock were reserved for stock-based awards under Altria Group, Inc.’s stock plans, and 10 million shares of serial preferred stock, $1.00 par value, were authorized. No shares of serial preferred stock have been issued.

▪Dividends: During the third quarter of 2015, the Board of Directors approved an 8.7% increase in the quarterly dividend rate to $0.565 per common share versus the previous rate of $0.52 per common share. The current annualized dividend rate is $2.26 per Altria Group, Inc. common share. Future dividend payments remain subject to the discretion of the Board of Directors.

▪Share Repurchases: In October 2011, the Board of Directors authorized a $1.0 billion share repurchase program and expanded it to $1.5 billion in October 2012 (as expanded, the “October 2011 share repurchase program”). During the first quarter of 2013, Altria Group, Inc. completed the October 2011 share repurchase program, under which Altria Group, Inc.

repurchased a total of 48.3 million shares of its common stock at an average price of $31.06 per share.

In April 2013, the Board of Directors authorized a $300 million share repurchase program and expanded it to $1.0 billion in August 2013 (as expanded, the “April 2013 share repurchase program”). During the third quarter of 2014, Altria Group, Inc. completed the April 2013 share repurchase program, under which Altria Group, Inc. repurchased a total of 27.1 million shares of its common stock at an average price of $36.97 per share.

In July 2014, the Board of Directors authorized a $1.0 billion share repurchase program (the “July 2014 share repurchase program”). During the third quarter of 2015, Altria Group, Inc. completed the July 2014 share repurchase program, under which Altria Group, Inc. repurchased a total of 20.4 million shares of its common stock at an average price of $48.90 per share.

In July 2015, the Board of Directors authorized a $1.0 billion share repurchase program (the “July 2015 share repurchase program”). During 2015, Altria Group, Inc. repurchased 0.6 million shares of its common stock (at an aggregate cost of approximately $35 million, and at an average price of $57.66 per share) under the July 2015 share repurchase program. At December 31, 2015, Altria Group, Inc. had approximately $965 million remaining in the July 2015 share repurchase program. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors.

For the years ended December 31, 2015, 2014 and 2013, Altria Group, Inc.’s total share repurchase activity was as follows:



	2015		2014		2013
	(in millions, except per share data)
Total number of shares repurchased	10.7		22.5		16.7
Aggregate cost of shares repurchased	$	554	$	939	$	600
Average price per share of shares repurchased	$	51.83	$	41.79	$	36.05