Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule Of Earnings Before Income Taxes And Provision For Income Taxes

Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2012, 2011 and 2010:



(in millions)	2012			2011			2010
Earnings before income taxes:
United States	$	6,461		$	5,568		$	5,709
Outside United States	16			14			14
Total	$	6,477		$	5,582		$	5,723
Provision for income taxes:
Current:
Federal	$	2,870		$	2,353		$	1,430
State and local	348			275			258
Outside United States	5			4			4
	3,223			2,632			1,692
Deferred:
Federal	(920		)	(458		)	120
State and local	(9		)	15			4
	(929		)	(443		)	124
Total provision for income taxes	$	2,294		$	2,189		$	1,816

Reconciliation Of Beginning And Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010 was as follows:



(in millions)	2012			2011			2010
Balance at beginning of year	$	381		$	399		$	601
Additions based on tax positions
related to the current year	15			22			21
Additions for tax positions of
prior years	170			71			30
Reductions for tax positions due to
lapse of statutes of limitations	(16		)	(39		)	(58		)
Reductions for tax positions of
prior years	(102		)	(67		)	(164		)
Settlements	(186		)	(5		)	(31		)
Balance at end of year	$	262		$	381		$	399

Schedule Of Unrecognized Tax Benefits And Consolidated Liability For Tax Contingencies

Unrecognized tax benefits and Altria Group, Inc.'s consolidated liability for tax contingencies at December 31, 2012 and 2011, were as follows:



(in millions)	2012			2011
Unrecognized tax benefits — Altria Group, Inc.	$	156		$	191
Unrecognized tax benefits — Mondelēz	9			112
Unrecognized tax benefits — PMI	97			78
Unrecognized tax benefits	262			381
Accrued interest and penalties	66			618
Tax credits and other indirect benefits	(20		)	(211		)
Liability for tax contingencies	$	308		$	788

Reconciliation Of Effective Tax Rate And U.S. Federal Statutory Rate

The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2012, 2011 and 2010:



	2012		2011		2010
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
State and local income taxes, net
of federal tax benefit	3.5		3.8		3.7
Uncertain tax positions	(0.7	)	5.5		(2.3	)
SABMiller dividend benefit	(0.1	)	(2.0	)	(2.3	)
Domestic manufacturing deduction	(2.0	)	(2.4	)	(2.4	)
Other	(0.3	)	(0.7	)	—
Effective tax rate	35.4	%	39.2	%	31.7	%

Schedule Of Deferred Income Tax Assets And Liabilities

The tax effects of temporary differences that gave rise to consumer products deferred income tax assets and liabilities consisted of the following at December 31, 2012 and 2011:



(in millions)	2012			2011
Deferred income tax assets:
Accrued postretirement and
postemployment benefits	$	1,101		$	1,087
Settlement charges	1,419			1,382
Accrued pension costs	549			458
Net operating losses and tax credit
carryforwards	208			96
Total deferred income tax assets	3,277			3,023
Deferred income tax liabilities:
Property, plant and equipment	(475		)	(511		)
Intangible assets	(3,787		)	(3,721		)
Investment in SABMiller	(2,198		)	(1,803		)
Other	(166		)	(251		)
Total deferred income tax liabilities	(6,626		)	(6,286		)
Valuation allowances	(184		)	(82		)
Net deferred income tax liabilities	$	(3,533	)	$	(3,345	)