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Condensed Consolidating Financial Information
9 Months Ended
Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information:

PM USA, which is a wholly-owned subsidiary of Altria Group, Inc., has issued guarantees relating to Altria Group, Inc.’s obligations under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper program (the “Guarantees”). Pursuant to the Guarantees, PM USA fully and unconditionally guarantees, as primary obligor, the payment and performance of Altria Group, Inc.’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below.
The Guarantees provide that PM USA guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of PM USA under the Guarantees is absolute and unconditional irrespective of: any lack of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other circumstance that might otherwise constitute a defense available to, or a discharge of, Altria Group, Inc. or PM USA.
The obligations of PM USA under the Guarantees are limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of PM USA that are relevant under Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Guarantees, result in PM USA’s obligations under the Guarantees not constituting a fraudulent transfer or conveyance. For this purpose, “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

PM USA will be unconditionally released and discharged from the Obligations upon the earliest to occur of:

the date, if any, on which PM USA consolidates with or merges into Altria Group, Inc. or any successor;

the date, if any, on which Altria Group, Inc. or any successor consolidates with or merges into PM USA;

the payment in full of the Obligations pertaining to such Guarantees; and
the rating of Altria Group, Inc.’s long-term senior unsecured debt by Standard & Poor’s of A or higher.

At September 30, 2013, the respective principal wholly-owned subsidiaries of Altria Group, Inc. and PM USA were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their common stock.
The following sets forth the condensed consolidating balance sheets as of September 30, 2013 and December 31, 2012, condensed consolidating statements of earnings and comprehensive earnings for the nine and three months ended September 30, 2013 and 2012, and condensed consolidating statements of cash flows for the nine months ended September 30, 2013 and 2012 for Altria Group, Inc., PM USA and Altria Group, Inc.’s other subsidiaries that are not guarantors of Altria Group, Inc.’s debt instruments (the “Non-Guarantor Subsidiaries”). The financial information is based on Altria Group, Inc.’s understanding of the Securities and Exchange Commission (“SEC”) interpretation and application of Rule 3-10 of SEC Regulation S-X.
The financial information may not necessarily be indicative of results of operations or financial position had PM USA and the Non-Guarantor Subsidiaries operated as independent entities. Altria Group, Inc. and PM USA account for investments in their subsidiaries under the equity method of accounting.


Condensed Consolidating Balance Sheets
September 30, 2013
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
4,169

 
$

 
$
42

 
$

 
$
4,211

Receivables
 

 
6

 
86

 

 
92

Inventories:
 
 
 
 
 
 
 
 
 
 
Leaf tobacco
 

 
459

 
339

 

 
798

Other raw materials
 

 
126

 
51

 

 
177

Work in process
 

 
9

 
298

 

 
307

Finished product
 

 
162

 
274

 

 
436

 
 

 
756

 
962

 

 
1,718

Due from Altria Group, Inc. and subsidiaries
 
5,469

 
2,953

 
1,679

 
(10,101
)
 

Deferred income taxes
 
1

 
1,246

 
16

 
(45
)
 
1,218

Other current assets
 
131

 
259

 
47

 
(127
)
 
310

Total current assets
 
9,770

 
5,220

 
2,832

 
(10,273
)
 
7,549

Property, plant and equipment, at cost
 
2

 
3,257

 
1,528

 

 
4,787

Less accumulated depreciation
 
2

 
2,144

 
600

 

 
2,746

 
 

 
1,113

 
928

 

 
2,041

Goodwill
 

 

 
5,174

 

 
5,174

Other intangible assets, net
 

 
2

 
12,061

 

 
12,063

Investment in SABMiller
 
6,520

 

 

 

 
6,520

Investment in consolidated subsidiaries
 
10,042

 
2,996

 

 
(13,038
)
 

Finance assets, net
 

 

 
2,153

 

 
2,153

Other assets
 
151

 
561

 
113

 
(375
)
 
450

Total Assets
 
$
26,483

 
$
9,892

 
$
23,261

 
$
(23,686
)
 
$
35,950


Continued

Condensed Consolidating Balance Sheets (Continued)
September 30, 2013
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Liabilities
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
1,984

 
$

 
$

 
$

 
$
1,984

Accounts payable
 
30

 
128

 
189

 

 
347

Accrued liabilities:
 
 
 
 
 
 
 
 
 

Marketing
 

 
494

 
29

 

 
523

Employment costs
 
89

 
9

 
117

 

 
215

Settlement charges
 

 
3,041

 
6

 

 
3,047

Other
 
364

 
704

 
362

 
(172
)
 
1,258

Dividends payable
 
963

 

 

 

 
963

Due to Altria Group, Inc. and subsidiaries
 
4,088

 
453

 
5,560

 
(10,101
)
 

Total current liabilities
 
7,518

 
4,829

 
6,263

 
(10,273
)
 
8,337

Long-term debt
 
12,592

 

 
300

 

 
12,892

Deferred income taxes
 
2,012

 

 
4,829

 
(375
)
 
6,466

Accrued pension costs
 
223

 

 
1,020

 

 
1,243

Accrued postretirement health care costs
 

 
1,728

 
764

 

 
2,492

Other liabilities
 
157

 
194

 
154

 

 
505

Total liabilities
 
22,502

 
6,751

 
13,330

 
(10,648
)
 
31,935

Contingencies
 


 


 


 


 


Redeemable noncontrolling interest
 

 

 
34

 

 
34

Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
Common stock
 
935

 

 
9

 
(9
)
 
935

Additional paid-in capital
 
5,701

 
3,320

 
10,273

 
(13,593
)
 
5,701

Earnings reinvested in the business
 
25,636

 
234

 
1,367

 
(1,601
)
 
25,636

Accumulated other comprehensive losses
 
(2,223
)
 
(413
)
 
(1,752
)
 
2,165

 
(2,223
)
Cost of repurchased stock
 
(26,068
)
 

 

 

 
(26,068
)
Total stockholders’ equity attributable to Altria Group, Inc.
 
3,981

 
3,141

 
9,897

 
(13,038
)
 
3,981

Noncontrolling interests
 

 

 

 

 

Total stockholders’ equity
 
3,981

 
3,141

 
9,897

 
(13,038
)
 
3,981

Total Liabilities and Stockholders’ Equity
 
$
26,483

 
$
9,892

 
$
23,261

 
$
(23,686
)
 
$
35,950


Condensed Consolidating Balance Sheets
December 31, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
2,862

 
$

 
$
38

 
$

 
$
2,900

Receivables
 
101

 
7

 
85

 

 
193

Inventories:
 
 
 
 
 
 
 
 
 
 
Leaf tobacco
 

 
512

 
364

 

 
876

Other raw materials
 

 
127

 
46

 

 
173

Work in process
 

 
3

 
346

 

 
349

Finished product
 

 
117

 
231

 

 
348

 
 

 
759

 
987

 

 
1,746

Due from Altria Group, Inc. and subsidiaries
 
834

 
3,424

 
1,171

 
(5,429
)
 

Deferred income taxes
 

 
1,246

 
16

 
(46
)
 
1,216

Other current assets
 

 
193

 
175

 
(108
)
 
260

Total current assets
 
3,797

 
5,629

 
2,472

 
(5,583
)
 
6,315

Property, plant and equipment, at cost
 
2

 
3,253

 
1,495

 

 
4,750

Less accumulated depreciation
 
2

 
2,073

 
573

 

 
2,648

 
 

 
1,180

 
922

 

 
2,102

Goodwill
 

 

 
5,174

 

 
5,174

Other intangible assets, net
 

 
2

 
12,076

 

 
12,078

Investment in SABMiller
 
6,637

 

 

 

 
6,637

Investment in consolidated subsidiaries
 
9,521

 
3,018

 

 
(12,539
)
 

Finance assets, net
 

 

 
2,581

 

 
2,581

Due from Altria Group, Inc. and subsidiaries
 
4,500

 

 

 
(4,500
)
 

Other assets
 
136

 
530

 
141

 
(365
)
 
442

Total Assets
 
$
24,591

 
$
10,359

 
$
23,366

 
$
(22,987
)
 
$
35,329


Continued


Condensed Consolidating Balance Sheets (Continued)
December 31, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Liabilities
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
1,459

 
$

 
$

 
$

 
$
1,459

Accounts payable
 
4

 
155

 
292

 

 
451

Accrued liabilities:
 
 
 
 
 
 
 
 
 

Marketing
 

 
526

 
42

 

 
568

Employment costs
 
27

 
10

 
147

 

 
184

Settlement charges
 

 
3,610

 
6

 

 
3,616

Other
 
469

 
506

 
272

 
(154
)
 
1,093

Dividends payable
 
888

 

 

 

 
888

Due to Altria Group, Inc. and subsidiaries
 
3,965

 
409

 
1,055

 
(5,429
)
 

Total current liabilities
 
6,812

 
5,216

 
1,814

 
(5,583
)
 
8,259

Long-term debt
 
12,120

 

 
299

 

 
12,419

Deferred income taxes
 
2,034

 

 
4,983

 
(365
)
 
6,652

Accrued pension costs
 
235

 

 
1,500

 

 
1,735

Accrued postretirement health care costs
 

 
1,759

 
745

 

 
2,504

Due to Altria Group, Inc. and subsidiaries
 

 

 
4,500

 
(4,500
)
 

Other liabilities
 
222

 
178

 
156

 

 
556

Total liabilities
 
21,423

 
7,153

 
13,997

 
(10,448
)
 
32,125

Contingencies
 


 


 


 


 


Redeemable noncontrolling interest
 

 

 
34

 

 
34

Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
Common stock
 
935

 

 
9

 
(9
)
 
935

Additional paid-in capital
 
5,688

 
3,321

 
10,272

 
(13,593
)
 
5,688

Earnings reinvested in the business
 
24,316

 
314

 
943

 
(1,257
)
 
24,316

Accumulated other comprehensive losses
 
(2,040
)
 
(429
)
 
(1,891
)
 
2,320

 
(2,040
)
Cost of repurchased stock
 
(25,731
)
 

 

 

 
(25,731
)
Total stockholders’ equity attributable to Altria Group, Inc.
 
3,168

 
3,206

 
9,333

 
(12,539
)
 
3,168

Noncontrolling interests
 

 

 
2

 

 
2

Total stockholders’ equity
 
3,168

 
3,206

 
9,335

 
(12,539
)
 
3,170

Total Liabilities and Stockholders’ Equity
 
$
24,591

 
$
10,359

 
$
23,366

 
$
(22,987
)
 
$
35,329



Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Nine Months Ended September 30, 2013
(in millions of dollars)

 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
15,967

 
$
2,436

 
$
(17
)
 
$
18,386

Cost of sales
 

 
4,550

 
677

 
(17
)
 
5,210

Excise taxes on products
 

 
4,936

 
191

 

 
5,127

Gross profit
 

 
6,481

 
1,568

 

 
8,049

Marketing, administration and research costs
 
155

 
1,384

 
184

 

 
1,723

Changes to Mondelēz and PMI tax-related receivables/payables
 
25

 

 

 

 
25

Asset impairment and exit costs
 

 
1

 

 

 
1

Amortization of intangibles
 

 

 
15

 

 
15

Operating (expense) income
 
(180
)
 
5,096

 
1,369

 

 
6,285

Interest and other debt expense, net
 
490

 
2

 
302

 

 
794

Earnings from equity investment in SABMiller
 
(738
)
 

 

 

 
(738
)
Earnings before income taxes and equity earnings of subsidiaries
 
68

 
5,094

 
1,067

 

 
6,229

(Benefit) provision for income taxes
 
(89
)
 
1,890

 
381

 

 
2,182

Equity earnings of subsidiaries
 
3,890

 
163

 

 
(4,053
)
 

Net earnings
 
4,047

 
3,367

 
686

 
(4,053
)
 
4,047

Net earnings attributable to noncontrolling interests
 

 

 

 

 

Net earnings attributable to Altria Group, Inc.
 
$
4,047

 
$
3,367

 
$
686

 
$
(4,053
)
 
$
4,047

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
4,047

 
$
3,367

 
$
686

 
$
(4,053
)
 
$
4,047

Other comprehensive (losses) earnings, net of deferred income taxes
 
(183
)
 
16

 
139

 
(155
)
 
(183
)
Comprehensive earnings
 
3,864

 
3,383

 
825

 
(4,208
)
 
3,864

Comprehensive losses (earnings) attributable to noncontrolling interests
 

 

 

 

 

Comprehensive earnings attributable to
Altria Group, Inc.
 
$
3,864

 
$
3,383

 
$
825

 
$
(4,208
)
 
$
3,864


Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Nine Months Ended September 30, 2012
(in millions of dollars)

 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
16,090

 
$
2,304

 
$
(18
)
 
$
18,376

Cost of sales
 

 
5,238

 
640

 
(18
)
 
5,860

Excise taxes on products
 

 
5,117

 
219

 

 
5,336

Gross profit
 

 
5,735

 
1,445

 

 
7,180

Marketing, administration and research costs
 
148

 
1,382

 
148

 

 
1,678

Changes to Mondelēz and PMI tax-related receivables/payables
 
(48
)
 

 

 

 
(48
)
Asset impairment and exit costs
 
1

 
45

 
1

 

 
47

Amortization of intangibles
 

 

 
15

 

 
15

Operating (expense) income
 
(101
)
 
4,308

 
1,281

 

 
5,488

Interest and other debt expense (income), net
 
548

 
(2
)
 
322

 

 
868

Loss on early extinguishment of debt
 
874

 

 

 

 
874

Earnings from equity investment in SABMiller
 
(973
)
 

 

 

 
(973
)
(Loss) earnings before income taxes and equity earnings of subsidiaries
 
(550
)
 
4,310

 
959

 

 
4,719

(Benefit) provision for income taxes
 
(240
)
 
1,567

 
314

 

 
1,641

Equity earnings of subsidiaries
 
3,387

 
163

 

 
(3,550
)
 

Net earnings
 
3,077

 
2,906

 
645

 
(3,550
)
 
3,078

Net earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Net earnings attributable to Altria Group, Inc.
 
$
3,077

 
$
2,906

 
$
644

 
$
(3,550
)
 
$
3,077

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
3,077

 
$
2,906

 
$
645

 
$
(3,550
)
 
$
3,078

Other comprehensive earnings, net of deferred income taxes
 
283

 
10

 
82

 
(92
)
 
283

Comprehensive earnings
 
3,360

 
2,916

 
727

 
(3,642
)
 
3,361

Comprehensive earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Comprehensive earnings attributable to
    Altria Group, Inc.
 
$
3,360

 
$
2,916

 
$
726

 
$
(3,642
)
 
$
3,360




Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Three Months Ended September 30, 2013
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
5,627

 
$
932

 
$
(6
)
 
$
6,553

Cost of sales
 

 
1,698

 
247

 
(6
)
 
1,939

Excise taxes on products
 

 
1,728

 
65

 

 
1,793

Gross profit
 

 
2,201

 
620

 

 
2,821

Marketing, administration and research costs
 
60

 
517

 
82

 

 
659

Changes to Mondelēz and PMI tax-related receivables/payables
 
25

 

 

 

 
25

Asset impairment and exit costs
 

 

 

 

 

Amortization of intangibles
 

 

 
5

 

 
5

Operating (expense) income
 
(85
)
 
1,684

 
533

 

 
2,132

Interest and other debt expense, net
 
166

 
3

 
100

 

 
269

Earnings from equity investment in SABMiller
 
(255
)
 

 

 

 
(255
)
Earnings before income taxes and equity earnings of subsidiaries
 
4

 
1,681

 
433

 

 
2,118

(Benefit) provision for income taxes
 
(63
)
 
628

 
157

 

 
722

Equity earnings of subsidiaries
 
1,329

 
61

 

 
(1,390
)
 

Net earnings
 
1,396

 
1,114

 
276

 
(1,390
)
 
1,396

Net earnings attributable to noncontrolling interests
 

 

 

 

 

Net earnings attributable to Altria Group, Inc.
 
$
1,396

 
$
1,114

 
$
276

 
$
(1,390
)
 
$
1,396

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
1,396

 
$
1,114

 
$
276

 
$
(1,390
)
 
$
1,396

Other comprehensive earnings, net of deferred income taxes
 
107

 
4

 
41

 
(45
)
 
107

Comprehensive earnings
 
1,503

 
1,118

 
317

 
(1,435
)
 
1,503

Comprehensive losses (earnings) attributable to noncontrolling interests
 

 

 

 

 

Comprehensive earnings attributable to
Altria Group, Inc.
 
$
1,503

 
$
1,118

 
$
317

 
$
(1,435
)
 
$
1,503




 
Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Three Months Ended September 30, 2012
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Net revenues
 
$

 
$
5,444

 
$
804

 
$
(6
)
 
$
6,242

Cost of sales
 

 
1,763

 
225

 
(6
)
 
1,982

Excise taxes on products
 

 
1,706

 
70

 

 
1,776

Gross profit
 

 
1,975

 
509

 

 
2,484

Marketing, administration and research costs
 
61

 
464

 
23

 

 
548

Changes to Mondelēz and PMI tax-related receivables/payables
 
(48
)
 

 

 

 
(48
)
Asset impairment and exit costs
 
1

 
9

 

 

 
10

Amortization of intangibles
 

 

 
5

 

 
5

Operating (expense) income
 
(14
)
 
1,502

 
481

 

 
1,969

Interest and other debt expense (income), net
 
181

 
(1
)
 
102

 

 
282

Loss on early extinguishment of debt
 
874

 

 

 

 
874

Earnings from equity investment in SABMiller
 
(230
)
 

 

 

 
(230
)
(Loss) earnings before income taxes and equity earnings of subsidiaries
 
(839
)
 
1,503

 
379

 

 
1,043

(Benefit) provision for income taxes
 
(295
)
 
527

 
154

 

 
386

Equity earnings of subsidiaries
 
1,201

 
56

 

 
(1,257
)
 

Net earnings
 
657

 
1,032

 
225

 
(1,257
)
 
657

Net earnings attributable to noncontrolling interests
 

 

 

 

 

Net earnings attributable to Altria Group, Inc.
 
$
657

 
$
1,032

 
$
225

 
$
(1,257
)
 
$
657

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
657

 
$
1,032

 
$
225

 
$
(1,257
)
 
$
657

Other comprehensive earnings, net of deferred income taxes
 
70

 
4

 
31

 
(35
)
 
70

Comprehensive earnings
 
727

 
1,036

 
256

 
(1,292
)
 
727

Comprehensive earnings attributable to noncontrolling interests
 

 

 

 

 

Comprehensive earnings attributable to
    Altria Group, Inc.
 
$
727

 
$
1,036

 
$
256

 
$
(1,292
)
 
$
727





 
Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2013
(in millions of dollars)
 
 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Cash Provided by Operating Activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
3,347

 
$
2,986

 
$
351

 
$
(3,708
)
 
$
2,976

Cash Provided by (Used in) Investing Activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(18
)
 
(72
)
 

 
(90
)
Proceeds from finance assets
 

 

 
559

 

 
559

Other
 

 

 
16

 

 
16

Net cash (used in) provided by investing activities
 

 
(18
)
 
503

 

 
485

Cash Provided by (Used in) Financing Activities
 
 
 
 
 
 
 
 
 
 
Long-term debt issued
 
996

 

 

 

 
996

Repurchases of common stock
 
(382
)
 

 

 

 
(382
)
Dividends paid on common stock
 
(2,652
)
 

 

 

 
(2,652
)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries
 
(11
)
 
517

 
(506
)
 

 

Financing fees and debt issuance costs
 
(12
)
 

 

 

 
(12
)
Cash dividends paid to parent
 

 
(3,447
)
 
(261
)
 
3,708

 

Other
 
21

 
(38
)
 
(83
)
 

 
(100
)
Net cash used in financing activities
 
(2,040
)
 
(2,968
)
 
(850
)
 
3,708

 
(2,150
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
Increase
 
1,307

 

 
4

 

 
1,311

Balance at beginning of period
 
2,862

 

 
38

 

 
2,900

Balance at end of period
 
$
4,169

 
$

 
$
42

 
$

 
$
4,211



 



Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2012
(in millions of dollars)

 
 
Altria
Group, Inc.
 
PM USA
 
Non-
Guarantor
Subsidiaries
 
Total
Consolidating
Adjustments
 
Consolidated
Cash Provided by Operating Activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
1,883

 
$
2,814

 
$
382

 
$
(2,959
)
 
$
2,120

Cash Provided by (Used in) Investing Activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(18
)
 
(59
)
 

 
(77
)
Proceeds from finance assets
 

 

 
813

 

 
813

Other
 

 

 
(8
)
 

 
(8
)
Net cash (used in) provided by investing activities
 

 
(18
)
 
746

 

 
728

Cash Provided by (Used in) Financing Activities
 
 
 
 
 
 
 
 
 
 
Long-term debt issued
 
2,787

 

 

 

 
2,787

Long-term debt repaid
 
(2,000
)
 

 
(600
)
 

 
(2,600
)
Repurchases of common stock
 
(595
)
 

 

 

 
(595
)
Dividends paid on common stock
 
(2,508
)
 

 

 

 
(2,508
)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries
 
220

 
17

 
(237
)
 

 

Financing fees and debt issuance costs
 
(22
)
 

 

 

 
(22
)
Tender premiums and fees related to early extinguishment of debt
 
(864
)
 

 

 

 
(864
)
Cash dividends paid to parent
 

 
(2,774
)
 
(185
)
 
2,959

 

Other
 
7

 
(39
)
 
(98
)
 

 
(130
)
Net cash used in financing activities
 
(2,975
)
 
(2,796
)
 
(1,120
)
 
2,959

 
(3,932
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
(Decrease) increase
 
(1,092
)
 

 
8

 

 
(1,084
)
Balance at beginning of period
 
3,245

 

 
25

 

 
3,270

 
 
$
2,153

 
$

 
$
33

 
$

 
$
2,186