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Segment Reporting
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The products of Altria’s subsidiaries include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. The products and services of these subsidiaries constitute Altria’s reportable segments of smokeable products and oral tobacco products at December 31, 2021. The financial services and the innovative tobacco products businesses, which include the heated tobacco business and Helix ROW, are included in all other.
On October 1, 2021, UST sold IWS, which included Ste. Michelle, for a net purchase price of approximately $1.2 billion. Prior to October 1, 2021, wine produced and/or sold by Ste. Michelle was a reportable segment. For further discussion, see Note 1. Background and Basis of Presentation and Asset Impairment, Exit, Implementation, Acquisition and Disposition-Related Costs - Ste. Michelle Transaction below.
Altria’s chief operating decision maker (the “CODM”) reviews operating companies income (loss) (“OCI”) to evaluate the performance of, and allocate resources to, the segments. OCI for the segments is defined as operating income before general corporate expenses and amortization of intangibles. Interest and other debt expense, net, along with net periodic benefit income/cost, excluding service cost, and provision (benefit) for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by the CODM. Information about total assets by segment is not disclosed because such information is not reported to or used by the CODM. Substantially all of Altria’s long-lived assets are located in the United States. Segment goodwill and other intangible assets, net, are disclosed in Note 4. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies.
Segment data were as follows:
 For the Years Ended December 31,
(in millions)202120202019
Net revenues:
Smokeable products$22,866 $23,089 $21,996 
Oral tobacco products2,608 2,533 2,367 
Wine494 614 689 
All other45 (83)58 
Net revenues$26,013 $26,153 $25,110 
Earnings before income taxes:
OCI:
Smokeable products$10,394 $9,985 $9,009 
Oral tobacco products1,659 1,718 1,580 
Wine21 (360)(3)
All other(97)(172)(16)
Amortization of intangibles(72)(72)(44)
General corporate expenses(345)(227)(199)
Corporate asset impairment and exit costs
— 1 (1)
Operating income11,560 10,873 10,326 
Interest and other debt expense, net
1,162 1,209 1,280 
Loss on early extinguishment of debt649 — — 
Net periodic benefit income, excluding service cost (202)(77)(37)
(Income) losses from equity investments5,979 111 (1,725)
Impairment of JUUL equity securities
— 2,600 8,600 
Loss on Cronos-related financial instruments148 140 1,442 
Earnings before income taxes$3,824 $6,890 $766 
The smokeable products segment included net revenues of $21,877 million, $22,135 million and $21,158 million for the years ended December 31, 2021, 2020 and 2019, respectively, related to cigarettes and net revenues of $989 million, $954 million and $838 million for the years ended December 31, 2021, 2020 and 2019, respectively, related to cigars.
Substantially all of Altria’s net revenues are from sales generated in the United States for the years ended December 31, 2021, 2020 and 2019. PM USA, USSTC, Helix and Middleton’s customer, McLane Company, Inc., accounted for approximately 23%, 26% and 25% of Altria’s consolidated net revenues for the years ended December 31, 2021, 2020 and 2019, respectively. In addition, Performance Food Group Company, which acquired Core-Mark Holding Company, Inc. in 2021, also accounted for approximately 23% of Altria’s consolidated net revenues for the year ended December 31, 2021. Core-Mark Holding Company, Inc. accounted for 17% and 15% of Altria’s consolidated net revenues for the years ended December 31, 2020 and 2019, respectively. Substantially all of these net revenues were reported in the smokeable products and oral tobacco products segments. No other customer accounted for more than 10% of Altria’s consolidated net revenues for the years ended December 31, 2021, 2020 and 2019.
Details of Altria’s depreciation expense and capital expenditures were as follows:
 For the Years Ended December 31,
(in millions)202120202019
Depreciation expense:
Smokeable products$80 $81 $88 
Oral tobacco products34 32 27 
Wine27 40 41 
General corporate and other31 32 26 
Total depreciation expense$172 $185 $182 
Capital expenditures:
Smokeable products$48 $49 $61 
Oral tobacco products43 67 44 
Wine12 31 63 
General corporate and other66 84 78 
Total capital expenditures$169 $231 $246 
The comparability of OCI for the reportable segments and the all other category was affected by the following:
▪Non-Participating Manufacturer (“NPM”) Adjustment Items: Pre-tax (income) expense for NPM adjustment items was recorded to Altria’s consolidated statements of earnings (losses) as follows:
For the Years Ended December 31,
(in millions)20212020
Smokeable products segment
$(53)$4 
Interest and other debt expense, net
(23)— 
Total$(76)$4 
NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation in Note 18. Contingencies). The amounts shown in the table above for the smokeable products segment were recorded as (reductions) increases to cost of sales, which (increased) decreased OCI in the smokeable products segment. No NPM adjustment items were recorded for 2019.
▪Tobacco and Health and Certain Other Litigation Items: Pre-tax charges related to tobacco and health and certain other litigation items were recorded in Altria’s consolidated statements of earnings (losses) as follows:
For the Years Ended December 31,
(in millions)202120202019
Smokeable products segment
$83 $79 $72 
General corporate90 — — 
Interest and other debt expense, net
9 4 5 
Total$182 $83 $77 
The amounts shown in the table above for the smokeable products segment and general corporate were recorded in marketing, administration and research costs. For further discussion, see Note 18. Contingencies.
▪COVID-19 Special Items: Net pre-tax charges of $50 million ($41 million in the smokeable products segment and $9 million in the oral tobacco products segment) related to the COVID-19 pandemic were recorded in Altria’s consolidated statement of earnings (losses) for the year ended December 31, 2020. The net pre-tax charges, which were directly related to disruptions caused by or efforts to mitigate the impact of the COVID-19 pandemic, were all recorded in costs of sales and included premium pay, personal protective equipment and health screenings, which were partially offset by certain employment tax credits. The COVID-19 special items do not include the inventory-related implementation costs associated with the wine business strategic reset which are included in asset impairment, exit, implementation, acquisition and disposition-related costs. These implementation costs were due to increased inventory levels, which were further negatively impacted by the COVID-19 pandemic, including economic uncertainty and government restrictions.
▪Asset Impairment, Exit, Implementation, Acquisition and Disposition-Related Costs: For the years ended December 31, 2021, 2020 and 2019, Altria recorded pre-tax asset impairment, exit and implementation costs of $1 million, $407 million and $216 million, respectively. For a breakdown of asset impairment, exit and implementation costs by segment, see Note 5. Asset Impairment, Exit and Implementation Costs.
In addition, in 2021 the comparability of OCI was further impacted by the following disposition and acquisition-related costs:
Ste. Michelle Transaction: For the year ended December 31, 2021, net pre-tax disposition-related costs of $51 million were recorded in the wine segment, which consisted of a net pre-tax charge of $41 million to record the assets and liabilities associated with the Ste. Michelle Transaction at their fair value less costs to sell and $10 million of other disposition-related costs. The total net pre-tax charges of $51 million were recorded in marketing, administration and research costs in Altria’s consolidated statements of earnings (losses).
Acquisition-Related Costs: For the year ended December 31, 2021, Altria recorded pre-tax acquisition-related costs of $37 million in the oral tobacco products segment primarily for the settlement of an arbitration related to the 2019 on! transaction. These costs were included in marketing, administration and research costs in Altria’s consolidated statements of earnings (losses).
▪PMCC Residual Value Adjustments: For the year ended December 31, 2020, PMCC recorded pre-tax charges of $125 million (as a reduction to net revenues in the all other category) related to the decrease in unguaranteed residual values of certain leased assets. There were no such adjustments in 2021 or 2019.