Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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, 2014, 2013 and 2012:

(in millions)	2014			2013			2012
Earnings before income taxes:
United States	$	7,763		$	6,929		$	6,461
Outside United States	11			13			16
Total	$	7,774		$	6,942		$	6,477
Provision for income taxes:
Current:
Federal	$	2,350		$	2,066		$	2,870
State and local	480			423			348
Outside United States	3			4			5
	2,833			2,493			3,223
Deferred:
Federal	(124		)	(77		)	(920		)
State and local	(5		)	(9		)	(9		)
	(129		)	(86		)	(929		)
Total provision for income taxes	$	2,704		$	2,407		$	2,294

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, 2014, 2013 and 2012 was as follows:

(in millions)	2014			2013			2012
Balance at beginning of year	$	227		$	262		$	381
Additions based on tax positions related to the current year	15			15			15
Additions for tax positions of prior years	29			35			170
Reductions for tax positions due to lapse of statutes of limitations	(2		)	(1		)	(16		)
Reductions for tax positions of prior years	—			—			(102		)
Settlements	(11		)	(84		)	(186		)
Balance at end of year	$	258		$	227		$	262

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, 2014 and 2013, were as follows:

(in millions)	2014			2013
Unrecognized tax benefits — Altria Group, Inc.	$	228		$	188
Unrecognized tax benefits — Mondelēz	—			9
Unrecognized tax benefits — PMI	30			30
Unrecognized tax benefits	258			227
Accrued interest and penalties	57			48
Tax credits and other indirect benefits	(17		)	(14		)
Liability for tax contingencies	$	298		$	261

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, 2014, 2013 and 2012:

	2014		2013		2012
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	4.0		3.8		3.5
Uncertain tax positions	0.5		0.7		(0.7	)
SABMiller dividend benefit	(2.3	)	(2.0	)	(0.1	)
Domestic manufacturing deduction	(2.4	)	(2.7	)	(2.0	)
Other	—		(0.1	)	(0.3	)
Effective tax rate	34.8	%	34.7	%	35.4	%

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, 2014 and 2013:

(in millions)	2014			2013
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	1,054		$	934
Settlement charges	1,379			1,338
Accrued pension costs	410			33
Net operating losses and tax credit carryforwards	357			331
Total deferred income tax assets	3,200			2,636
Deferred income tax liabilities:
Property, plant and equipment	(468		)	(462		)
Intangible assets	(3,915		)	(3,848		)
Investment in SABMiller	(2,039		)	(2,135		)
Finance assets, net	(1,123		)	(1,424		)
Other	(190		)	(190		)
Total deferred income tax liabilities	(7,735		)	(8,059		)
Valuation allowances	(211		)	(195		)
Net deferred income tax liabilities	$	(4,746	)	$	(5,618	)