Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans

The benefit obligations, plan assets and funded status of Altria Group, Inc.’s pension and postretirement plans at December 31, 2017 and 2016 were as follows:



	Pension						Postretirement
(in millions)	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	8,312		$	8,011		$	2,364		$	2,392
Service cost	75			76			16			17
Interest cost	288			281			76			77
Benefits paid	(703		)	(440		)	(139		)	(135		)
Actuarial losses	589			367			56			24
Termination, settlement and curtailment	(51		)	13			—			5
Other	—			4			(38		)	(16		)
Benefit obligation at end of year	8,510			8,312			2,335			2,364
Change in plan assets:
Fair value of plan assets at beginning of year	7,475			6,706			—			—
Actual return on plan assets	1,219			678			—			—
Employer contributions	24			531			270			—
Benefits paid	(703		)	(440		)	—			—
Fair value of plan assets at end of year	8,015			7,475			270			—
Funded status at December 31	$	(495	)	$	(837	)	$	(2,065	)	$	(2,364	)
Amounts recognized on Altria Group, Inc.’s consolidated balance sheets were as follows:
Other accrued liabilities	$	(51	)	$	(32	)	$	(78	)	$	(147	)
Accrued pension costs	(445		)	(805		)	—			—
Other assets	1			—			—			—
Accrued postretirement health care costs	—			—			(1,987		)	(2,217		)
	$	(495	)	$	(837	)	$	(2,065	)	$	(2,364	)

Net Pension Liability Recognized in Consolidated Balance Sheets

The benefit obligations, plan assets and funded status of Altria Group, Inc.’s pension and postretirement plans at December 31, 2017 and 2016 were as follows:



	Pension						Postretirement
(in millions)	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	8,312		$	8,011		$	2,364		$	2,392
Service cost	75			76			16			17
Interest cost	288			281			76			77
Benefits paid	(703		)	(440		)	(139		)	(135		)
Actuarial losses	589			367			56			24
Termination, settlement and curtailment	(51		)	13			—			5
Other	—			4			(38		)	(16		)
Benefit obligation at end of year	8,510			8,312			2,335			2,364
Change in plan assets:
Fair value of plan assets at beginning of year	7,475			6,706			—			—
Actual return on plan assets	1,219			678			—			—
Employer contributions	24			531			270			—
Benefits paid	(703		)	(440		)	—			—
Fair value of plan assets at end of year	8,015			7,475			270			—
Funded status at December 31	$	(495	)	$	(837	)	$	(2,065	)	$	(2,364	)
Amounts recognized on Altria Group, Inc.’s consolidated balance sheets were as follows:
Other accrued liabilities	$	(51	)	$	(32	)	$	(78	)	$	(147	)
Accrued pension costs	(445		)	(805		)	—			—
Other assets	1			—			—			—
Accrued postretirement health care costs	—			—			(1,987		)	(2,217		)
	$	(495	)	$	(837	)	$	(2,065	)	$	(2,364	)

Assumptions used to Determine Benefit Obligations

The following assumptions were used to determine Altria Group, Inc.’s pension benefit obligations at December 31:



	2017		2016
Discount rate	3.7	%	4.1	%
Rate of compensation increase	4.0		4.0

The following assumptions were used to determine Altria Group, Inc.’s postretirement benefit obligations at December 31:



	2017		2016
Discount rate	3.7	%	4.1	%
Health care cost trend rate assumed for next year	7.0		7.0
Ultimate trend rate	5.0		5.0
Year that the rate reaches the ultimate trend rate	2022		2022

Schedule of Net Benefit Costs

Net periodic benefit cost consisted of the following for the years ended December 31, 2017, 2016 and 2015:



	Pension									Postretirement
(in millions)	2017			2016			2015			2017			2016			2015
Service cost	$	75		$	76		$	86		$	16		$	17		$	18
Interest cost	288			281			337			76			77			100
Expected return on plan assets	(601		)	(553		)	(539		)	—			—			—
Amortization:
Net loss	197			171			234			25			25			43
Prior service cost (credit)	4			5			7			(38		)	(39		)	(39		)
Termination, settlement and curtailment	86			34			8			—			(2		)	—
Net periodic benefit cost	$	49		$	14		$	133		$	79		$	78		$	122

Schedule Of Termination Settlement And Curtailment Cost

The amounts included in termination, settlement and curtailment in the table above were comprised of the following changes:



	Pension						Post- retirement
(in millions)	2017		2016		2015		2016
Benefit obligation	$	—	$	23	$	—	$	11
Other comprehensive earnings/losses:
Net loss	86		9		8		—
Prior service cost (credit)	—		2		—		(13		)
	$	86	$	34	$	8	$	(2	)

Schedule of Estimated Net Loss and Prior Service Cost (Credit) Expected to be Amortized in 2017

The estimated net loss and prior service cost (credit) that are expected to be amortized from accumulated other comprehensive losses into net periodic benefit cost during 2018 is as follows:



(in millions)	Pension		Postretirement
Net loss	$	228	$	35
Prior service cost (credit)	4		(42		)

Schedule Of Assumptions To Determine Net Periodic Benefit Cost

The following assumptions were used to determine Altria Group, Inc.’s net periodic benefit cost for the years ended December 31:



	Pension						Postretirement
	2017		2016		2015		2017		2016		2015
Discount rates:
Service cost	4.3	%	4.7	%	4.1	%	4.3	%	4.5	%	4.0	%
Interest cost	3.5		3.6		4.1		3.5		3.4		4.0
Expected rate of return on plan assets	8.0		8.0		8.0		—		—		—
Rate of compensation increase	4.0		4.0		4.0		—		—		—
Health care cost trend rate	—		—		—		7.0		6.5		7.0

Effects of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage-point change in assumed health care cost trend rates would have had the following effects as of December 31, 2017:



	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on total of postretirement service and interest cost	7.8	%	(6.9	)%
Effect on postretirement benefit obligation	6.6	%	(5.5	)%

Schedule of Fair Value of Plan Assets by Asset Category

The fair values of Altria Group, Inc.’s pension plan assets by asset category at December 31, 2017 and 2016 were as follows:



	2017								2016
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	588	$	—	$	588	$	—	$	444	$	—	$	444
U.S. municipal bonds	—		81		—		81		—		102		—		102
Foreign government and agencies	—		150		—		150		—		185		—		185
Corporate debt instruments:
Above investment grade	—		1,789		—		1,789		—		1,735		—		1,735
Below investment grade and no rating	—		511		—		511		—		602		—		602
Common stock:
International equities	1,396		—		—		1,396		1,076		—		—		1,076
U.S. equities	831		—		—		831		760		—		—		760
Other, net	120		74		—		194		142		33		13		188
	$	2,347	$	3,193	$	—	$	5,540	$	1,978	$	3,101	$	13	$	5,092
Investments measured at NAV as a practical expedient for fair value:
Common/collective trusts:
U.S. large cap							2,014								1,940
U.S. small cap							361								363
International developed markets							100								80
Fair value of plan assets, net							$	8,015							$	7,475

Estimated Future Benefit Payments

Estimated future benefit payments at December 31, 2017 were as follows:



(in millions)	Pension		Postretirement
2018	$	480	$	142
2019	451		140
2020	456		138
2021	459		136
2022	463		133
2023-2027	2,372		620

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The amounts recorded in accumulated other comprehensive losses at December 31, 2017 consisted of the following:



(in millions)	Pension			Post- retirement			Post- employment			Total
Net loss	$	(2,493	)	$	(612	)	$	(93	)	$	(3,198	)
Prior service (cost) credit	(15		)	195			—			180
Deferred income taxes	979			166			34			1,179
Amounts recorded in accumulated other comprehensive losses	$	(1,529	)	$	(251	)	$	(59	)	$	(1,839	)

The amounts recorded in accumulated other comprehensive losses at December 31, 2016 consisted of the following:



(in millions)	Pension			Post- retirement			Post- employment			Total
Net loss	$	(2,857	)	$	(581	)	$	(99	)	$	(3,537	)
Prior service (cost) credit	(19		)	195			—			176
Deferred income taxes	1,124			153			36			1,313
Amounts recorded in accumulated other comprehensive losses	$	(1,752	)	$	(233	)	$	(63	)	$	(2,048	)

Movements in Other Comprehensive Earnings/Losses

The movements in other comprehensive earnings/losses during the year ended December 31, 2017 were as follows:



(in millions)	Pension			Post- retirement			Post- employment			Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	197		$	25		$	17		$	239
Prior service cost/credit	4			(38		)	—			(34		)
Other expense:
Net loss	86			—			—			86
Deferred income taxes	(113		)	6			(6		)	(113		)
	174			(7		)	11			178
Other movements during the year:
Net loss	81			(56		)	(11		)	14
Prior service cost/credit	—			38			—			38
Deferred income taxes	(32		)	7			4			(21		)
	49			(11		)	(7		)	31
Total movements in other comprehensive earnings/losses	$	223		$	(18	)	$	4		$	209

The movements in other comprehensive earnings/losses during the year ended December 31, 2016 were as follows:



(in millions)	Pension			Post- retirement			Post- employment			Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	171		$	25		$	18		$	214
Prior service cost/credit	5			(39		)	—			(34		)
Other expense (income):
Net loss	9			—			—			9
Prior service cost/credit	2			(13		)	—			(11		)
Deferred income taxes	(69		)	11			(7		)	(65		)
	118			(16		)	11			113
Other movements during the year:
Net loss	(232		)	(18		)	(9		)	(259		)
Prior service cost/credit	(4		)	16			—			12
Deferred income taxes	92			1			3			96
	(144		)	(1		)	(6		)	(151		)
Total movements in other comprehensive earnings/losses	$	(26	)	$	(17	)	$	5		$	(38	)

The movements in other comprehensive earnings/losses during the year ended December 31, 2015 were as follows:



(in millions)	Pension			Post- retirement			Post- employment			Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	234		$	43		$	19		$	296
Prior service cost/credit	7			(39		)	—			(32		)
Other expense:
Net loss	8			—			—			8
Deferred income taxes	(96		)	(2		)	(7		)	(105		)
	153			2			12			167
Other movements during the year:
Net loss	(410		)	192			(5		)	(223		)
Prior service cost/credit	(6		)	6			—			—
Deferred income taxes	160			(75		)	1			86
	(256		)	123			(4		)	(137		)
Total movements in other comprehensive earnings/losses	$	(103	)	$	125		$	8		$	30