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Segment Reporting
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting
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. 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 Nine Months Ended September 30,
 
For the Three Months Ended September 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
(in millions)
Net revenues:
 
 
 
 
 
 
 
 
Smokeable products
 
$
16,448

 
$
16,616

 
$
5,802

 
$
5,613

Smokeless products
 
1,333

 
1,243

 
485

 
437

Wine
 
411

 
381

 
148

 
140

All other
 
194

 
136

 
118

 
52

Net revenues
 
$
18,386

 
$
18,376

 
$
6,553

 
$
6,242

Earnings before income taxes:
 
 
 
 
 
 
 
 
Operating companies income:
 
 
 
 
 
 
 
 
Smokeable products
 
$
5,471

 
$
4,716

 
$
1,825

 
$
1,637

Smokeless products
 
769

 
678

 
277

 
246

Wine
 
73

 
63

 
28

 
26

All other
 
185

 
166

 
92

 
79

Amortization of intangibles
 
(15
)
 
(15
)
 
(5
)
 
(5
)
General corporate expenses
 
(173
)
 
(168
)
 
(60
)
 
(62
)
Changes to Mondelēz and PMI tax-related receivables/payables
 
(25
)
 
48

 
(25
)
 
48

Operating income
 
6,285

 
5,488

 
2,132

 
1,969

Interest and other debt expense, net
 
(794
)
 
(868
)
 
(269
)
 
(282
)
Loss on early extinguishment of debt
 
—

 
(874
)
 
—

 
(874
)
Earnings from equity investment in SABMiller
 
738

 
973

 
255

 
230

Earnings before income taxes
 
$
6,229

 
$
4,719

 
$
2,118

 
$
1,043



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

Non-Participating Manufacturer (“NPM”) Adjustment Items - For the nine and three months ended September 30, 2013, PM USA recorded pre-tax income of $664 million and $145 million, respectively, on Altria Group, Inc.’s condensed consolidated statements of earnings, which increased operating companies income in the smokeable products segment. This recording of pre-tax income resulted from the following:
•
a reduction to cost of sales of $519 million for the nine months ended September 30, 2013 for the settlement of disputes with certain states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (the “MSA”) for the years 2003 - 2012; and

•
a reduction to cost of sales of $145 million for the nine and three months ended September 30, 2013 for the September 11, 2013 diligent enforcement rulings of the arbitration panel presiding over the NPM adjustment dispute for 2003.

For further discussion of these items, see Possible Adjustments in MSA Payments for 2003 - 2012 in Note 11. Contingencies.
Asset Impairment, Exit and Implementation Costs - See Note 2. Asset Impairment, Exit and Implementation Costs for a breakdown of these costs by segment.

Tobacco and Health Judgments - See Note 11. Contingencies for pre-tax charges related to tobacco and health judgments recorded in operating companies income in the smokeable products segment.