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Asset Impairment, Exit and Implementation Costs
 9 Months Ended
Sep. 30, 2016
Restructuring and Related Activities [Abstract]  
Asset Impairment, Exit and Implementation Costs
Asset Impairment, Exit and Implementation Costs:

Productivity Initiative

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 nine and three months ended September 30, 2016 of $130 million, or $0.04 per share, and $6 million, respectively, recorded in connection with the productivity initiative consisted of the following:
 
For the Nine Months Ended September 30, 2016
 
For the Three Months Ended September 30, 2016
 
Asset Impairment and Exit Costs (1)
 
Implementation Costs
 
Total
 
Asset Impairment and Exit Costs
 
Implementation Costs
 
Total
 
(in millions)
Smokeable products
$
99

 
$
6

 
$
105

 
$
1

 
$
3

 
$
4

Smokeless products
13

 
1

 
14

 
—

 
1

 
1

All other
6

 
—

 
6

 
1

 
—

 
1

General corporate
5

 
—

 
5

 
—

 
—

 
—

Total
$
123

 
$
7

 
$
130

 
$
2

 
$
4

 
$
6


(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 Nine Months Ended September 30, 2016
 
(in millions)
Charges
$
103

Cash spent
(52
)
Balances at September 30, 2016
$
51



Facilities Consolidation
On October 27, 2016, Altria Group, Inc. announced the consolidation of certain operating companies’ manufacturing facilities to streamline operations and achieve greater efficiencies. Middleton will transfer its Limerick, Pennsylvania operations to the Manufacturing Center site in Richmond, Virginia. USSTC will transfer its Franklin Park, Illinois operations to its Nashville, Tennessee facility and the Manufacturing Center site in Richmond, Virginia. Employees affected by the consolidation will be offered the opportunity to transfer into available positions; those who do not do so will be offered separation benefits. The consolidation is expected to be completed by the first quarter of 2018 and deliver approximately $50 million in annualized cost savings by the end of 2018.
As a result of this consolidation, Altria Group, Inc. expects to record total pre-tax charges of approximately $150 million, or $0.05 per share. Of this amount, Altria Group, Inc. expects to record pre-tax charges of approximately $60 million, or $0.02 per share, in the fourth quarter of 2016, $75 million in 2017 and the remainder in 2018. The estimated charges relate primarily to accelerated depreciation ($55 million), employee separation costs ($45 million) and other exit and implementation costs ($50 million). Approximately $90 million of the total pre-tax charges are expected to result in cash expenditures. These estimated charges do not reflect the non-cash impact that may result from pension settlement and curtailment accounting.