Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Reporting:

The products of Altria Group, Inc.’s subsidiaries include smokeable products comprised of cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; smokeless products manufactured and sold by or on behalf of USSTC and PM USA; and wine produced and/or distributed by Ste. Michelle. The products and services of these subsidiaries constitute Altria Group, Inc.’s reportable segments of smokeable products, smokeless products and wine. In addition, the financial services and the alternative products businesses are included in all other.

As discussed in Note 1. Background and Basis of Presentation,beginning with the first quarter of 2013, Altria Group, Inc. revised its reportable segments. Prior-period segment data have been recast to conform with the current-period segment presentation.

Altria Group, Inc.’s chief operating decision maker reviews operating companies income to evaluate the performance of and allocate resources to the segments. Operating companies income for the segments excludes general corporate expenses and amortization of intangibles. Interest and other debt expense, net, and provision 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 Altria Group, Inc.’s chief operating decision maker.

Segment data were as follows:

	For the Three Months Ended March 31,
	2013			2012
	(in millions)
Net revenues:
Smokeable products	$	4,968		$	5,100
Smokeless products	390			380
Wine	126			113
All other	44			54
Net revenues	$	5,528		$	5,647
Earnings before income taxes:
Operating companies income:
Smokeable products	$	1,920		$	1,439
Smokeless products	222			192
Wine	20			15
All other	50			52
Amortization of intangibles	(5		)	(5		)
General corporate expenses	(55		)	(51		)
Operating income	2,152			1,642
Interest and other debt expense, net	(261		)	(293		)
Earnings from equity investment in SABMiller	256			520
Earnings before income taxes	$	2,147		$	1,869

Items affecting the comparability of operating companies income for the segments were as follows:

Asset Impairment, Exit and Implementation Costs - SeeNote 2. Asset Impairment, Exit and Implementation Costs for a breakdown of these costs by segment.

Tobacco and Health Judgments - For the three months ended March 31, 2013, pre-tax charges of $5 million, excluding accrued interest of $1 million, related to certain tobacco and health judgments were recorded in operating companies income of the smokeable products segment. These charges were included in marketing, administration and research costs on Altria Group, Inc.’s condensed consolidated statement of earnings. See Note 10. Contingencies for further discussion.

Non-Participating Manufacturer Adjustment -For the three months ended March 31, 2013, PM USA recorded a reduction to cost of sales of $483 million on its condensed consolidated statement of earnings, which increased operating companies income in the smokeable products segment. This reduction to cost of sales resulted from the settlement of disputes with certain states related to the non-participating manufacturer adjustment (“NPM Adjustment”) under the 1998 Master Settlement Agreement (the “MSA”) for the years 2003 - 2012 discussed in detail under Possible Adjustments in MSA Payments for 2003 - 2012 in Note 10. Contingencies.