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Condensed Consolidating Financial Information (Tables)
6 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheets
June 30, 2015
(in millions of dollars)
 
 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,077

 
$
1

 
$
45

 
$

 
$
1,123

Receivables
 

 
4

 
138

 

 
142

Inventories:
 
 
 
 
 
 
 
 
 
 
Leaf tobacco
 

 
494

 
371

 

 
865

Other raw materials
 

 
131

 
70

 

 
201

Work in process
 

 
10

 
357

 

 
367

Finished product
 

 
167

 
314

 

 
481

 
 

 
802

 
1,112

 

 
1,914

Due from Altria Group, Inc. and subsidiaries
 

 
2,686

 
1,192

 
(3,878
)
 

Deferred income taxes
 
1

 
1,189

 
9

 
(56
)
 
1,143

Other current assets
 
179

 
82

 
58

 
(8
)
 
311

Total current assets
 
1,257

 
4,764

 
2,554

 
(3,942
)
 
4,633

Property, plant and equipment, at cost
 

 
3,103

 
1,702

 

 
4,805

Less accumulated depreciation
 

 
2,116

 
698

 

 
2,814

 
 

 
987

 
1,004

 

 
1,991

Goodwill
 

 

 
5,285

 

 
5,285

Other intangible assets, net
 

 
2

 
12,037

 

 
12,039

Investment in SABMiller
 
6,117

 

 

 

 
6,117

Investment in consolidated subsidiaries
 
11,404

 
2,769

 

 
(14,173
)
 

Finance assets, net
 

 

 
1,339

 

 
1,339

Due from Altria Group, Inc. and subsidiaries
 
4,790

 

 

 
(4,790
)
 

Other assets
 
141

 
543

 
105

 
(324
)
 
465

Total Assets
 
$
23,709

 
$
9,065

 
$
22,324

 
$
(23,229
)
 
$
31,869




Condensed Consolidating Balance Sheets (Continued)
June 30, 2015
(in millions of dollars)
 
 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Liabilities
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
1,000

 
$

 
$
3

 
$

 
$
1,003

Accounts payable
 
19

 
147

 
124

 

 
290

Accrued liabilities:
 
 
 
 
 
 
 
 
 
 
Marketing
 

 
588

 
86

 

 
674

Employment costs
 
14

 
9

 
81

 

 
104

Settlement charges
 

 
2,199

 
7

 

 
2,206

Other
 
322

 
467

 
236

 
(64
)
 
961

Dividends payable
 
1,023

 

 

 

 
1,023

Due to Altria Group, Inc. and subsidiaries
 
3,503

 
374

 
1

 
(3,878
)
 

Total current liabilities
 
5,881

 
3,784

 
538

 
(3,942
)
 
6,261

Long-term debt
 
12,901

 

 
16

 

 
12,917

Deferred income taxes
 
1,732

 

 
4,603

 
(324
)
 
6,011

Accrued pension costs
 
231

 

 
714

 

 
945

Accrued postretirement health care costs
 

 
1,588

 
863

 

 
2,451

Due to Altria Group, Inc. and subsidiaries
 

 

 
4,790

 
(4,790
)
 

Other liabilities
 
185

 
139

 
151

 

 
475

Total liabilities
 
20,930

 
5,511

 
11,675

 
(9,056
)
 
29,060

Contingencies
 


 


 


 


 


Redeemable noncontrolling interest
 

 

 
36

 

 
36

Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
Common stock
 
935

 

 
9

 
(9
)
 
935

Additional paid-in capital
 
5,768

 
3,310

 
11,339

 
(14,649
)
 
5,768

Earnings reinvested in the business
 
26,698

 
578

 
824

 
(1,402
)
 
26,698

Accumulated other comprehensive losses
 
(2,878
)
 
(334
)
 
(1,553
)
 
1,887

 
(2,878
)
Cost of repurchased stock
 
(27,744
)
 

 

 

 
(27,744
)
Total stockholders’ equity attributable to Altria Group, Inc.
 
2,779

 
3,554

 
10,619

 
(14,173
)
 
2,779

Noncontrolling interests
 

 

 
(6
)
 

 
(6
)
Total stockholders’ equity
 
2,779

 
3,554

 
10,613

 
(14,173
)
 
2,773

Total Liabilities and Stockholders’ Equity
 
$
23,709

 
$
9,065

 
$
22,324

 
$
(23,229
)
 
$
31,869





Condensed Consolidating Balance Sheets
December 31, 2014
(in millions of dollars)
 
 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
3,281

 
$
3

 
$
37

 
$

 
$
3,321

Receivables
 

 
6

 
118

 

 
124

Inventories:
 
 
 
 
 
 
 
 
 
 
Leaf tobacco
 

 
616

 
375

 

 
991

Other raw materials
 

 
132

 
68

 

 
200

Work in process
 

 
4

 
425

 

 
429

Finished product
 

 
134

 
286

 

 
420

 
 

 
886

 
1,154

 

 
2,040

Due from Altria Group, Inc. and subsidiaries
 
568

 
3,535

 
1,279

 
(5,382
)
 

Deferred income taxes
 

 
1,190

 
9

 
(56
)
 
1,143

Other current assets
 
54

 
101

 
122

 
(27
)
 
250

Total current assets
 
3,903

 
5,721

 
2,719

 
(5,465
)
 
6,878

Property, plant and equipment, at cost
 

 
3,112

 
1,643

 

 
4,755

Less accumulated depreciation
 

 
2,091

 
681

 

 
2,772

 
 

 
1,021

 
962

 

 
1,983

Goodwill
 

 

 
5,285

 

 
5,285

Other intangible assets, net
 

 
2

 
12,047

 

 
12,049

Investment in SABMiller
 
6,183

 

 

 

 
6,183

Investment in consolidated subsidiaries
 
10,665

 
2,775

 

 
(13,440
)
 

Finance assets, net
 

 

 
1,614

 

 
1,614

Due from Altria Group, Inc. and subsidiaries
 
4,790

 

 

 
(4,790
)
 

Other assets
 
148

 
541

 
121

 
(327
)
 
483

Total Assets
 
$
25,689

 
$
10,060

 
$
22,748

 
$
(24,022
)
 
$
34,475





Condensed Consolidating Balance Sheets (Continued)
December 31, 2014
(in millions of dollars)

 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Liabilities
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
1,000

 
$

 
$

 
$

 
$
1,000

Accounts payable
 
18

 
118

 
280

 

 
416

Accrued liabilities:
 
 
 
 
 
 
 
 
 
 
Marketing
 

 
505

 
113

 

 
618

Employment costs
 
18

 
10

 
158

 

 
186

Settlement charges
 

 
3,495

 
5

 

 
3,500

Other
 
321

 
400

 
287

 
(83
)
 
925

Dividends payable
 
1,028

 

 

 

 
1,028

Due to Altria Group, Inc. and subsidiaries
 
4,414

 
402

 
566

 
(5,382
)
 

Total current liabilities
 
6,799

 
4,930

 
1,409

 
(5,465
)
 
7,673

Long-term debt
 
13,693

 

 

 

 
13,693

Deferred income taxes
 
1,754

 

 
4,661

 
(327
)
 
6,088

Accrued pension costs
 
233

 

 
779

 

 
1,012

Accrued postretirement health care costs
 

 
1,608

 
853

 

 
2,461

Due to Altria Group, Inc. and subsidiaries
 

 

 
4,790

 
(4,790
)
 

Other liabilities
 
196

 
151

 
156

 

 
503

Total liabilities
 
22,675

 
6,689

 
12,648

 
(10,582
)
 
31,430

Contingencies
 


 


 


 


 


Redeemable noncontrolling interest
 

 

 
35

 

 
35

Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
Common stock
 
935

 

 
9

 
(9
)
 
935

Additional paid-in capital
 
5,735

 
3,310

 
10,688

 
(13,998
)
 
5,735

Earnings reinvested in the business
 
26,277

 
402

 
995

 
(1,397
)
 
26,277

Accumulated other comprehensive losses
 
(2,682
)
 
(341
)
 
(1,623
)
 
1,964

 
(2,682
)
Cost of repurchased stock
 
(27,251
)
 

 

 

 
(27,251
)
Total stockholders’ equity attributable to Altria Group, Inc.
 
3,014

 
3,371

 
10,069

 
(13,440
)
 
3,014

Noncontrolling interests
 

 

 
(4
)
 

 
(4
)
Total stockholders’ equity
 
3,014

 
3,371

 
10,065

 
(13,440
)
 
3,010

Total Liabilities and Stockholders’ Equity
 
$
25,689

 
$
10,060

 
$
22,748

 
$
(24,022
)
 
$
34,475

Condensed Consolidating Statements of Earnings and Comprehensive Earnings
Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Six Months Ended June 30, 2015
(in millions of dollars)
 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Net revenues
 
$

 
$
10,878

 
$
1,560

 
$
(21
)
 
$
12,417

Cost of sales
 

 
3,312

 
510

 
(21
)
 
3,801

Excise taxes on products
 

 
3,164

 
106

 

 
3,270

Gross profit
 

 
4,402

 
944

 

 
5,346

Marketing, administration and research costs
 
89

 
959

 
205

 

 
1,253

Asset impairment and exit costs
 

 

 
4

 

 
4

Operating (expense) income
 
(89
)
 
3,443

 
735

 

 
4,089

Interest and other debt expense, net
 
292

 

 
112

 

 
404

Loss on early extinguishment of debt
 
228

 

 

 

 
228

Earnings from equity investment in SABMiller
 
(359
)
 

 

 

 
(359
)
(Loss) Earnings before income taxes and equity earnings of subsidiaries
 
(250
)
 
3,443

 
623

 

 
3,816

(Benefit) provision for income taxes
 
(145
)
 
1,274

 
220

 

 
1,349

Equity earnings of subsidiaries
 
2,571

 
126

 

 
(2,697
)
 

Net earnings
 
2,466

 
2,295

 
403

 
(2,697
)
 
2,467

Net earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Net earnings attributable to Altria Group, Inc.
 
$
2,466

 
$
2,295

 
$
402

 
$
(2,697
)
 
$
2,466

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
2,466

 
$
2,295

 
$
403

 
$
(2,697
)
 
$
2,467

Other comprehensive (losses) earnings, net of deferred income taxes
 
(196
)
 
7

 
70

 
(77
)
 
(196
)
Comprehensive earnings
 
2,270

 
2,302

 
473

 
(2,774
)
 
2,271

Comprehensive earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Comprehensive earnings attributable to
Altria Group, Inc.
 
$
2,270

 
$
2,302

 
$
472

 
$
(2,774
)
 
$
2,270


Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Six Months Ended June 30, 2014
(in millions of dollars)

 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Net revenues
 
$

 
$
10,261

 
$
1,534

 
$
(22
)
 
$
11,773

Cost of sales
 

 
3,247

 
495

 
(22
)
 
3,720

Excise taxes on products
 

 
3,089

 
105

 

 
3,194

Gross profit
 

 
3,925

 
934

 

 
4,859

Marketing, administration and research costs
 
104

 
867

 
187

 

 
1,158

Asset impairment and exit costs
 

 
(8
)
 

 

 
(8
)
Operating (expense) income
 
(104
)
 
3,066

 
747

 

 
3,709

Interest and other debt expense (income), net
 
308

 
(47
)
 
122

 

 
383

Earnings from equity investment in SABMiller
 
(425
)
 

 

 

 
(425
)
Earnings before income taxes and equity earnings of subsidiaries
 
13

 
3,113

 
625

 

 
3,751

(Benefit) provision for income taxes
 
(65
)
 
1,154

 
225

 

 
1,314

Equity earnings of subsidiaries
 
2,359

 
117

 

 
(2,476
)
 

Net earnings
 
2,437

 
2,076

 
400

 
(2,476
)
 
2,437

Net earnings attributable to noncontrolling interests
 

 

 

 

 

Net earnings attributable to Altria Group, Inc.
 
$
2,437

 
$
2,076

 
$
400

 
$
(2,476
)
 
$
2,437

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
2,437

 
$
2,076

 
$
400

 
$
(2,476
)
 
$
2,437

Other comprehensive earnings, net of deferred income taxes
 
149

 
5

 
42

 
(47
)
 
149

Comprehensive earnings
 
2,586

 
2,081

 
442

 
(2,523
)
 
2,586

Comprehensive earnings attributable to noncontrolling interests
 

 

 

 

 

Comprehensive earnings attributable to
Altria Group, Inc.
 
$
2,586

 
$
2,081

 
$
442

 
$
(2,523
)
 
$
2,586

Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Three Months Ended June 30, 2015
(in millions of dollars)

 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Net revenues
 
$

 
$
5,810

 
$
815

 
$
(12
)
 
$
6,613

Cost of sales
 

 
1,746

 
270

 
(12
)
 
2,004

Excise taxes on products
 

 
1,684

 
54

 

 
1,738

Gross profit
 

 
2,380

 
491

 

 
2,871

Marketing, administration and research costs
 
47

 
494

 
102

 

 
643

Asset impairment and exit costs
 

 

 
4

 

 
4

Operating (expense) income
 
(47
)
 
1,886

 
385

 

 
2,224

Interest and other debt expense, net
 
138

 
1

 
56

 

 
195

Earnings from equity investment in SABMiller
 
(225
)
 

 

 

 
(225
)
Earnings before income taxes and equity earnings of subsidiaries
 
40

 
1,885

 
329

 

 
2,254

(Benefit) provision for income taxes
 
(2
)
 
690

 
117

 

 
805

Equity earnings of subsidiaries
 
1,406

 
65

 

 
(1,471
)
 

Net earnings
 
1,448

 
1,260

 
212

 
(1,471
)
 
1,449

Net earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Net earnings attributable to Altria Group, Inc.
 
$
1,448

 
$
1,260

 
$
211

 
$
(1,471
)
 
$
1,448

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
1,448

 
$
1,260

 
$
212

 
$
(1,471
)
 
$
1,449

Other comprehensive earnings, net of deferred income taxes
 
67

 
3

 
35

 
(38
)
 
67

Comprehensive earnings
 
1,515

 
1,263

 
247

 
(1,509
)
 
1,516

Comprehensive earnings attributable to noncontrolling interests
 

 

 
(1
)
 

 
(1
)
Comprehensive earnings attributable to
Altria Group, Inc.
 
$
1,515

 
$
1,263

 
$
246

 
$
(1,509
)
 
$
1,515


Condensed Consolidating Statements of Earnings and Comprehensive Earnings
For the Three Months Ended June 30, 2014
(in millions of dollars)

 
 
Altria
Group, Inc.

 
PM USA

 
Non-
Guarantor
Subsidiaries

 
Total
Consolidating
Adjustments

 
Consolidated

Net revenues
 
$

 
$
5,443

 
$
831

 
$
(18
)
 
$
6,256

Cost of sales
 

 
1,706

 
280

 
(18
)
 
1,968

Excise taxes on products
 

 
1,629

 
56

 

 
1,685

Gross profit
 

 
2,108

 
495

 

 
2,603

Marketing, administration and research costs
 
65

 
465

 
108

 

 
638

Asset impairment and exit costs
 

 
(10
)
 

 

 
(10
)
Operating (expense) income
 
(65
)
 
1,653

 
387

 

 
1,975

Interest and other debt expense, net
 
152

 
17

 
61

 

 
230

Earnings from equity investment in SABMiller
 
(200
)
 

 

 

 
(200
)
(Loss) earnings before income taxes and equity earnings of subsidiaries
 
(17
)
 
1,636

 
326

 

 
1,945

(Benefit) provision for income taxes
 
(42
)
 
607

 
118

 

 
683

Equity earnings of subsidiaries
 
1,237

 
64

 

 
(1,301
)
 

Net earnings
 
1,262

 
1,093

 
208

 
(1,301
)
 
1,262

Net earnings attributable to noncontrolling interests
 

 

 

 

 

Net earnings attributable to Altria Group, Inc.
 
$
1,262

 
$
1,093

 
$
208

 
$
(1,301
)
 
$
1,262

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
1,262

 
$
1,093

 
$
208

 
$
(1,301
)
 
$
1,262

Other comprehensive earnings, net of deferred income taxes
 
89

 
3

 
20

 
(23
)
 
89

Comprehensive earnings
 
1,351

 
1,096

 
228

 
(1,324
)
 
1,351

Comprehensive earnings attributable to noncontrolling interests
 

 

 

 

 

Comprehensive earnings attributable to
Altria Group, Inc.
 
$
1,351

 
$
1,096

 
$
228

 
$
(1,324
)
 
$
1,351

Condensed Consolidating Statements of Cash Flows
Condensed Consolidating Statements of Cash Flows
For the Six Months Ended June 30, 2015
(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
 
$
2,316

 
$
1,312

 
$
311

 
$
(2,692
)
 
$
1,247

Cash Provided by (Used in) Investing Activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(25
)
 
(74
)
 

 
(99
)
Proceeds from finance assets
 

 

 
185

 

 
185

Other
 

 
10

 
(9
)
 

 
1

Net cash (used in) provided by investing activities
 

 
(15
)
 
102

 

 
87

Cash Provided by (Used in) Financing Activities
 
 
 
 
 
 
 
 
 
 
Long-term debt repaid
 
(793
)
 

 

 

 
(793
)
Repurchases of common stock
 
(455
)
 

 

 

 
(455
)
Dividends paid on common stock
 
(2,050
)
 

 

 

 
(2,050
)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries
 
(996
)
 
820

 
176

 

 

Premiums and fees related to early extinguishment
of debt
 
(226
)
 

 

 

 
(226
)
Cash dividends paid to parent
 

 
(2,119
)
 
(573
)
 
2,692

 

Other
 

 

 
(8
)
 

 
(8
)
Net cash used in financing activities
 
(4,520
)
 
(1,299
)
 
(405
)
 
2,692

 
(3,532
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
(Decrease) increase
 
(2,204
)
 
(2
)
 
8

 

 
(2,198
)
Balance at beginning of period
 
3,281

 
3

 
37

 

 
3,321

Balance at end of period
 
$
1,077

 
$
1

 
$
45

 
$

 
$
1,123


Condensed Consolidating Statements of Cash Flows
For the Six Months Ended June 30, 2014
(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
 
$
2,121

 
$
846

 
$
223

 
$
(2,431
)
 
$
759

Cash Provided by (Used in) Investing Activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(21
)
 
(39
)
 

 
(60
)
Acquisition of Green Smoke, net of acquired cash
 

 

 
(93
)
 

 
(93
)
Proceeds from finance assets
 

 

 
189

 

 
189

Other
 

 
70

 
(4
)
 

 
66

Net cash provided by investing activities
 

 
49

 
53

 

 
102

Cash Provided by (Used in) Financing Activities
 
 
 
 
 
 
 
 
 
 
Long-term debt repaid
 
(525
)
 

 

 

 
(525
)
Repurchases of common stock
 
(404
)
 

 

 

 
(404
)
Dividends paid on common stock
 
(1,912
)
 

 

 

 
(1,912
)
Changes in amounts due to/from Altria Group, Inc. and subsidiaries
 
(1,248
)
 
1,042

 
206

 

 

Cash dividends paid to parent
 

 
(1,938
)
 
(493
)
 
2,431

 

Other
 

 

 
(2
)
 

 
(2
)
Net cash used in financing activities
 
(4,089
)
 
(896
)
 
(289
)
 
2,431

 
(2,843
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
Decrease
 
(1,968
)
 
(1
)
 
(13
)
 

 
(1,982
)
Balance at beginning of period
 
3,114

 
1

 
60

 

 
3,175

Balance at end of period
 
$
1,146

 
$

 
$
47

 
$

 
$
1,193