Finance Assets, net (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Schedule of PMCC Leveraged Lease Charge

During the second quarter of 2012, Altria Group, Inc. entered into a closing agreement (the “Closing Agreement”) with the Internal Revenue Service (the “IRS”) that conclusively resolved the federal income tax treatment for all prior and future tax years of certain leveraged lease transactions entered into by PMCC. As a result of the Closing Agreement, Altria Group, Inc. recorded a one-time net earnings benefit of $68 million during the second quarter of 2012, due primarily to lower than estimated interest on tax underpayments, which was recorded as follows:

	For the Year Ended December 31, 2012
(in millions)	Net Revenues		Benefit for Income Taxes			Total
Reduction to cumulative lease earnings	$	7	$	(2	)	$	5
Interest on tax underpayments	—		(73		)	(73		)
Total	$	7	$	(75	)	$	(68	)

Summary of Net Investments in Finance Leases

A summary of the net investments in finance leases, substantially all of which are leveraged leases, at December 31, 2014 and 2013, before allowance for losses is as follows:

(in millions)	2014			2013
Rents receivable, net	$	1,241		$	1,495
Unguaranteed residual values	827			1,127
Unearned income	(412		)	(573		)
Investments in finance leases	1,656			2,049
Deferred income taxes	(1,135		)	(1,440		)
Net investments in finance leases	$	521		$	609

Schedule of Rents Receivable

Rents receivable in excess of debt service requirements on third-party nonrecourse debt at December 31, 2014 were as follows:

(in millions)
2015	$	229
2016	48
2017	68
2018	154
2019	181
Thereafter	561
Total	$	1,241

Schedule of Allowance for Losses on Finance Assets

The activity in the allowance for losses on finance assets for the years ended December 31, 2014, 2013 and 2012 was as follows:

(in millions)	2014			2013			2012
Balance at beginning of year	$	52		$	99		$	227
Decrease to allowance	(10		)	(47		)	(10		)
Amounts written-off	—			—			(118		)
Balance at end of year	$	42		$	52		$	99

Schedule of Credit Quality of Investments in Finance Leases

The credit quality of PMCC’s investments in finance leases as assigned by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”) at December 31, 2014 and 2013 was as follows:

(in millions)	2014		2013
Credit Rating by Standard & Poor’s/Moody’s:
“AAA/Aaa” to “A-/A3”	$	417	$	464
“BBB+/Baa1” to “BBB-/Baa3”	833		927
“BB+/Ba1” and Lower	406		658
Total	$	1,656	$	2,049