Asset Impairment, Exit and Implementation Costs (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

Pre-tax asset impairment, exit and implementation costs consisted of the following:

		For the Nine Months Ended September 30,
		2020				2019
		Implementation Costs (1)		Total		Asset Impairment and Exit Costs		Implementation Costs (2)		Total
	(in millions)
Smokeable products		$	—	$	—	$	50	$	29	$	79
Oral tobacco products		—		—		9		3		12
Wine		395		395		—		—		—
All other		—		—		14		(7)		7
General corporate		—		—		1		—		1
Total		395		395		74		25		99
Plus amounts included in net periodic benefit income, excluding service cost (3)		—		—		12		—		12
Total		$	395	$	395	$	86	$	25	$	111

(1) Included in cost of sales in Altria’s condensed consolidated statements of earnings.

(2) Included in cost of sales ($1 million cost reversal) and marketing, administration and research costs ($26 million) in Altria’s condensed consolidated statements of earnings.

(3) Represents curtailment costs. See Note 6. Benefit Plans.

		For the Three Months Ended September 30,
	2020					2019
		Implementation Costs (1)		Total		Asset Impairment and Exit Costs		Implementation Costs (2)		Total
	(in millions)
Smokeable products		$	—	$	—	$	—	$	4	$	4
Oral tobacco products		—		—		1		—		1
Wine		1		1		—		—		—
Total		$	1	$	1	$	1	$	4	$	5

(1) Included in cost of sales in Altria’s condensed consolidated statements of earnings.

(2) Included in cost of sales ($1 million) and marketing, administration and research costs ($3 million) in Altria’s condensed consolidated statements of earnings.

Schedule of Restructuring Reserve by Type of Cost

The movement in the restructuring liabilities, substantially all of which were severance liabilities, related to the cost reduction program was as follows:

	(in millions)
Balances at December 31, 2019	$	67
Charges	—
Cash spent	(42)
Balances at September 30, 2020	$	25