Asset Impairment, Exit and Implementation Costs:

For the nine months ended September 30, 2013, pre-tax asset impairment and exit costs of $1 million were recorded in the smokeable products segment. For the nine months ended September 30, 2013, pre-tax implementation costs of $1 million were recorded in marketing, administration and research costs in the smokeable products segment.

Pre-tax asset impairment, exit and implementation costs for the nine and three months ended September 30, 2012 consisted of the following:



	For the Nine Months Ended September 30, 2012							For the Three Months Ended September 30, 2012
	Asset Impairment and Exit Costs		Implementation (Gain) Costs			Total		Asset Impairment and Exit Costs		Implementation Costs		Total
	(in millions)
Smokeable products	$	24	$	(11	)	$	13	$	1	$	1	$	2
Smokeless products	22		5			27		8		—		8
General corporate	1		(1		)	—		1		—		1
Total	$	47	$	(7	)	$	40	$	10	$	1	$	11

The asset impairment, exit and implementation (gain) costs shown in the table above were related to Altria Group, Inc.’s cost reduction program announced in October 2011 (the “2011 Cost Reduction Program”). Total pre-tax charges, net related to this program were substantially completed as of December 31, 2012.

For the nine months ended September 30, 2012, pre-tax implementation (gain) costs of $(7) million shown in the table above were recorded on Altria Group, Inc.’s condensed consolidated statement of earnings as follows: a net gain of $15 million, which included a $26 million curtailment gain related to amendments made to an Altria Group, Inc. postretirement benefit plan, was included in marketing, administration and research costs; and other costs of $8 million were included in cost of sales. For the three months ended September 30, 2012, pre-tax implementation costs of $1 million shown in the table above were recorded in marketing, administration and research costs on Altria Group, Inc.’s condensed consolidated statement of earnings.

The severance liability related to the 2011 Cost Reduction Program was $37 million at December 31, 2012, substantially all of which was paid as of June 30, 2013.