Benefit Plans:

Subsidiaries of Altria Group, Inc. sponsor noncontributory defined benefit pension plans covering the majority of all employees of Altria Group, Inc. However, employees hired on or after a date specific to their employee group are not eligible to participate in these noncontributory defined benefit pension plans but are instead eligible to participate in a defined contribution plan with enhanced benefits. This transition for new hires occurred from October 1, 2006 to January 1, 2008. In addition, effective January 1, 2010, certain employees of UST and Middleton who were participants in noncontributory defined benefit pension plans ceased to earn additional benefit service under those plans and became eligible to participate in a defined contribution plan with enhanced benefits. Altria Group, Inc. and its subsidiaries also provide health care and other benefits to the majority of retired employees.

Pension Plans

Components of Net Periodic Benefit Cost

Net periodic pension cost consisted of the following:



	For the Nine Months Ended September 30,						For the Three Months Ended September 30,
	2014			2013			2014			2013
	(in millions)
Service cost	$	51		$	65		$	17		$	22
Interest cost	258			235			86			78
Expected return on plan assets	(389		)	(370		)	(129		)	(123		)
Amortization:
Net loss	111			203			36			67
Prior service cost	8			8			3			3
Net periodic pension cost	$	39		$	141		$	13		$	47

Employer Contributions

Altria Group, Inc. makes contributions to the pension plans to the extent that the contributions are tax deductible and pays benefits that relate to plans for salaried employees that cannot be funded under Internal Revenue Service regulations. Employer contributions of $12 million were made to Altria Group, Inc.’s pension plans during the nine months ended September 30, 2014. Currently, Altria Group, Inc. anticipates making additional employer contributions to its pension plans during the remainder of 2014 of up to approximately $10 million, based on current tax law. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest rates.

Postretirement Benefit Plans

Net postretirement health care costs consisted of the following:



	For the Nine Months Ended September 30,						For the Three Months Ended September 30,
	2014			2013			2014			2013
	(in millions)
Service cost	$	11		$	13		$	3		$	3
Interest cost	80			74			26			23
Amortization:
Net loss	17			38			3			10
Prior service credit	(32		)	(33		)	(11		)	(11		)
Net postretirement health care costs	$	76		$	92		$	21		$	25

On October 27, 2014, the Society of Actuaries released a new set of mortality tables. Altria Group, Inc. will evaluate any impact of these tables to its employee benefit plans.