Asset Impairment, Exit and Implementation Costs

6 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

Asset Impairment, Exit and Implementation Costs

Asset Impairment, Exit and Implementation Costs:

In January 2016, Altria Group, Inc. announced a productivity initiative designed to maintain its operating companies’ leadership and cost competitiveness. The initiative reduces spending on certain selling, general and administrative infrastructure and implements a leaner organizational structure. As a result of this initiative, Altria Group, Inc. expects to incur total pre-tax restructuring charges of approximately $140 million, or $0.05 per share, substantially all of which are expected to be recorded in 2016 and result in cash expenditures. The charges consist of employee separation costs of approximately $120 million and other associated costs of approximately $20 million.

Pre-tax restructuring charges for the six and three months ended June 30, 2016 of $124 million, or $0.04 per share, and $2 million, respectively, recorded in connection with the productivity initiative consisted of the following:

	For the Six Months Ended June 30, 2016						For the Three Months Ended June 30, 2016
	Asset Impairment and Exit Costs (1)		Implementation Costs		Total		Asset Impairment and Exit Costs		Implementation Costs		Total
	(in millions)
Smokeable products	$	98	$	3	$	101	$	1	$	1	$	2
Smokeless products	13		—		13		—		—		—
All other	5		—		5		—		—		—
General corporate	5		—		5		—		—		—
Total	$	121	$	3	$	124	$	1	$	1	$	2

⁽¹⁾ Includes termination and curtailment costs of $20 million. See Note 3. Benefit Plans.

The movement in the restructuring liabilities (excluding termination and curtailment costs), substantially all of which are severance liabilities, was as follows:

	For the Six Months Ended June 30, 2016
	(in millions)
Charges	$	101
Cash spent	(29		)
Balances at June 30, 2016	$	72