(Condensed Consolidating Financial Information) (Tables)

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

March 31, 2016

(in millions of dollars)



	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	3,749	$	—	$	66	$	—		$	3,815
Receivables	—		6		98		—			104
Inventories:
Leaf tobacco	—		594		400		—			994
Other raw materials	—		118		60		—			178
Work in process	—		8		428		—			436
Finished product	—		157		343		—			500
	—		877		1,231		—			2,108
Due from Altria Group, Inc. and subsidiaries	16		5,129		1,820		(6,965		)	—
Deferred income taxes	—		1,268		7		(100		)	1,175
Other current assets	301		21		80		(106		)	296
Total current assets	4,066		7,301		3,302		(7,171		)	7,498
Property, plant and equipment, at cost	—		3,069		1,780		—			4,849
Less accumulated depreciation	—		2,141		753		—			2,894
	—		928		1,027		—			1,955
Goodwill	—		—		5,285		—			5,285
Other intangible assets, net	—		2		12,021		—			12,023
Investment in SABMiller	5,743		—		—		—			5,743
Investment in consolidated subsidiaries	11,131		2,709		—		(13,840		)	—
Finance assets, net	—		—		1,165		—			1,165
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	19		571		141		(337		)	394
Total Assets	$	25,749	$	11,511	$	22,941	$	(26,138	)	$	34,063

Condensed Consolidating Balance Sheets (Continued)

March 31, 2016

(in millions of dollars)



	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Liabilities
Current portion of long-term debt	$	—		$	—		$	4		$	—		$	4
Accounts payable	—			107			101			—			208
Accrued liabilities:
Marketing	—			578			109			—			687
Employment costs	66			5			66			—			137
Settlement charges	—			4,753			7			—			4,760
Other	323			569			329			(100		)	1,121
Income taxes	—			522			174			(106		)	590
Dividends payable	1,109			—			—			—			1,109
Due to Altria Group, Inc. and subsidiaries	6,720			220			25			(6,965		)	—
Total current liabilities	8,218			6,754			815			(7,171		)	8,616
Long-term debt	12,834			—			12			—			12,846
Deferred income taxes	1,638			—			4,305			(337		)	5,606
Accrued pension costs	204			—			1,275			—			1,479
Accrued postretirement health care costs	—			1,483			831			—			2,314
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	110			130			177			—			417
Total liabilities	23,004			8,367			12,205			(12,298		)	31,278
Contingencies
Redeemable noncontrolling interest	—			—			37			—			37
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,818			3,310			11,446			(14,756		)	5,818
Earnings reinvested in the business	27,367			106			1,089			(1,195		)	27,367
Accumulated other comprehensive losses	(3,327		)	(272		)	(1,848		)	2,120			(3,327		)
Cost of repurchased stock	(28,048		)	—			—			—			(28,048		)
Total stockholders’ equity attributable to Altria Group, Inc.	2,745			3,144			10,696			(13,840		)	2,745
Noncontrolling interests	—			—			3			—			3
Total stockholders’ equity	2,745			3,144			10,699			(13,840		)	2,748
Total Liabilities and Stockholders’ Equity	$	25,749		$	11,511		$	22,941		$	(26,138	)	$	34,063

Condensed Consolidating Balance Sheets

December 31, 2015

(in millions of dollars)



	Altria Group, Inc.		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	2,313	$	—	$	56	$	—		$	2,369
Receivables	—		7		117		—			124
Inventories:
Leaf tobacco	—		562		395		—			957
Other raw materials	—		123		58		—			181
Work in process	—		5		439		—			444
Finished product	—		121		328		—			449
	—		811		1,220		—			2,031
Due from Altria Group, Inc. and subsidiaries	—		3,821		1,807		(5,628		)	—
Deferred income taxes	—		1,268		7		(100		)	1,175
Other current assets	284		65		112		(74		)	387
Total current assets	2,597		5,972		3,319		(5,802		)	6,086
Property, plant and equipment, at cost	—		3,102		1,775		—			4,877
Less accumulated depreciation	—		2,157		738		—			2,895
	—		945		1,037		—			1,982
Goodwill	—		—		5,285		—			5,285
Other intangible assets, net	—		2		12,026		—			12,028
Investment in SABMiller	5,483		—		—		—			5,483
Investment in consolidated subsidiaries	11,648		2,715		—		(14,363		)	—
Finance assets, net	—		—		1,239		—			1,239
Due from Altria Group, Inc. and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	20		536		131		(327		)	360
Total Assets	$	24,538	$	10,170	$	23,037	$	(25,282	)	$	32,463

Condensed Consolidating Balance Sheets (Continued)

December 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	$	—		$	—		$	4		$	—		$	4
Accounts payable	3			104			293			—			400
Accrued liabilities:
Marketing	—			586			109			—			695
Employment costs	18			11			169			—			198
Settlement charges	—			3,585			5			—			3,590
Other	354			616			285			(174		)	1,081
Dividends payable	1,110			—			—			—			1,110
Due to Altria Group, Inc. and subsidiaries	5,427			191			10			(5,628		)	—
Total current liabilities	6,912			5,093			875			(5,802		)	7,078
Long-term debt	12,831			—			12			—			12,843
Deferred income taxes	1,547			—			4,443			(327		)	5,663
Accrued pension costs	215			—			1,062			—			1,277
Accrued postretirement health care costs	—			1,460			785			—			2,245
Due to Altria Group, Inc. and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	153			126			168			—			447
Total liabilities	21,658			6,679			12,135			(10,919		)	29,553
Contingencies
Redeemable noncontrolling interest	—			—			37			—			37
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,813			3,310			11,456			(14,766		)	5,813
Earnings reinvested in the business	27,257			436			1,099			(1,535		)	27,257
Accumulated other comprehensive losses	(3,280		)	(255		)	(1,692		)	1,947			(3,280		)
Cost of repurchased stock	(27,845		)	—			—			—			(27,845		)
Total stockholders’ equity attributable to Altria Group, Inc.	2,880			3,491			10,872			(14,363		)	2,880
Noncontrolling interests	—			—			(7		)	—			(7		)
Total stockholders’ equity	2,880			3,491			10,865			(14,363		)	2,873
Total Liabilities and Stockholders’ Equity	$	24,538		$	10,170		$	23,037		$	(25,282	)	$	32,463

Condensed Consolidating Statements of Earnings and Comprehensive Earnings

For the Three Months Ended March 31, 2016

(in millions of dollars)



	Altria Group, Inc.			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	5,265		$	810		$	(9	)	$	6,066
Cost of sales	—			1,642			241			(9		)	1,874
Excise taxes on products	—			1,487			49			—			1,536
Gross profit	—			2,136			520			—			2,656
Marketing, administration and research costs	36			415			108			—			559
Asset impairment and exit costs	5			94			21			—			120
Operating (expense) income	(41		)	1,627			391			—			1,977
Interest and other debt expense, net	129			15			56			—			200
Earnings from equity investment in SABMiller	(66		)	—			—			—			(66		)
Gain on derivative financial instrument	(40		)	—			—			—			(40		)
(Loss) earnings before income taxes and equity earnings of subsidiaries	(64		)	1,612			335			—			1,883
(Benefit) provision for income taxes	(49		)	603			111			—			665
Equity earnings of subsidiaries	1,232			60			—			(1,292		)	—
Net earnings	1,217			1,069			224			(1,292		)	1,218
Net earnings attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Net earnings attributable to Altria Group, Inc.	$	1,217		$	1,069		$	223		$	(1,292	)	$	1,217


Net earnings	$	1,217		$	1,069		$	224		$	(1,292	)	$	1,218
Other comprehensive losses, net of deferred income taxes	(47		)	(17		)	(156		)	173			(47		)
Comprehensive earnings	1,170			1,052			68			(1,119		)	1,171
Comprehensive earnings attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Comprehensive earnings attributable to Altria Group, Inc.	$	1,170		$	1,052		$	67		$	(1,119	)	$	1,170

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 Cash Flows

For the Three Months Ended March 31, 2016

(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	$	1,433		$	2,780		$	108		$	(1,632	)	$	2,689
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(7		)	(19		)	—			(26		)
Proceeds from finance assets	—			—			56			—			56
Other	—			—			4			—			4
Net cash (used in) provided by investing activities	—			(7		)	41			—			34
Cash Provided by (Used in) Financing Activities
Repurchases of common stock	(168		)	—			—			—			(168		)
Dividends paid on common stock	(1,108		)	—			—			—			(1,108		)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries	1,279			(1,374		)	95			—			—
Cash dividends paid to parent	—			(1,399		)	(233		)	1,632			—
Other	—			—			(1		)	—			(1		)
Net cash provided by (used in) financing activities	3			(2,773		)	(139		)	1,632			(1,277		)
Cash and cash equivalents:
Increase	1,436			—			10			—			1,446
Balance at beginning of period	2,313			—			56			—			2,369
Balance at end of period	$	3,749		$	—		$	66		$	—		$	3,815

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