Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

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, 2013, 2012 and 2011:

(in millions)	2013			2012			2011
Earnings before income taxes:
United States	$	6,929		$	6,461		$	5,568
Outside United States	13			16			14
Total	$	6,942		$	6,477		$	5,582
Provision for income taxes:
Current:
Federal	$	2,066		$	2,870		$	2,353
State and local	423			348			275
Outside United States	4			5			4
	2,493			3,223			2,632
Deferred:
Federal	(77		)	(920		)	(458		)
State and local	(9		)	(9		)	15
	(86		)	(929		)	(443		)
Total provision for income taxes	$	2,407		$	2,294		$	2,189

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, 2013, 2012 and 2011 was as follows:

(in millions)	2013			2012			2011
Balance at beginning of year	$	262		$	381		$	399
Additions based on tax positions related to the current year	15			15			22
Additions for tax positions of prior years	35			170			71
Reductions for tax positions due to lapse of statutes of limitations	(1		)	(16		)	(39		)
Reductions for tax positions of prior years	—			(102		)	(67		)
Settlements	(84		)	(186		)	(5		)
Balance at end of year	$	227		$	262		$	381

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, 2013 and 2012, were as follows:

(in millions)	2013			2012
Unrecognized tax benefits — Altria Group, Inc.	$	188		$	156
Unrecognized tax benefits — Mondelēz	9			9
Unrecognized tax benefits — PMI	30			97
Unrecognized tax benefits	227			262
Accrued interest and penalties	48			66
Tax credits and other indirect benefits	(14		)	(20		)
Liability for tax contingencies	$	261		$	308

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, 2013, 2012 and 2011:

	2013		2012		2011
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	3.8		3.5		3.8
Uncertain tax positions	0.7		(0.7	)	5.5
SABMiller dividend benefit	(2.0	)	(0.1	)	(2.0	)
Domestic manufacturing deduction	(2.7	)	(2.0	)	(2.4	)
Other	(0.1	)	(0.3	)	(0.7	)
Effective tax rate	34.7	%	35.4	%	39.2	%

Schedule of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at December 31, 2013 and 2012:

(in millions)	2013			2012
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	934		$	1,109
Settlement charges	1,338			1,419
Accrued pension costs	33			549
Net operating losses and tax credit carryforwards	331			208
Total deferred income tax assets	2,636			3,285
Deferred income tax liabilities:
Property, plant and equipment	(462		)	(475		)
Intangible assets	(3,848		)	(3,787		)
Investment in SABMiller	(2,135		)	(2,198		)
Finance assets, net	(1,424		)	(1,706		)
Other	(190		)	(167		)
Total deferred income tax liabilities	(8,059		)	(8,333		)
Valuation allowances	(195		)	(184		)
Net deferred income tax liabilities	$	(5,618	)	$	(5,232	)