Capital Stock

At December 31, 2016, Altria Group, Inc. had 12 billion shares of authorized common stock; issued, repurchased and outstanding shares of common stock were as follows:



	Shares Issued	Shares Repurchased		Shares Outstanding
Balances, December 31, 2013	2,805,961,317	(812,482,035	)	1,993,479,282
Stock award activity	—	447,840		447,840
Repurchases of common stock	—	(22,452,599	)	(22,452,599	)
Balances, December 31, 2014	2,805,961,317	(834,486,794	)	1,971,474,523
Stock award activity	—	(732,623	)	(732,623	)
Repurchases of common stock	—	(10,682,419	)	(10,682,419	)
Balances, December 31, 2015	2,805,961,317	(845,901,836	)	1,960,059,481
Stock award activity	—	(566,256	)	(566,256	)
Repurchases of common stock	—	(16,221,001	)	(16,221,001	)
Balances, December 31, 2016	2,805,961,317	(862,689,093	)	1,943,272,224

At December 31, 2016, 41,952,545 shares of common stock were reserved for stock-based awards under Altria Group, Inc.’s stock plans, and 10 million shares of serial preferred stock, $1.00 par value, were authorized. No shares of serial preferred stock have been issued.

▪Dividends: During the third quarter of 2016, Altria Group, Inc.’s Board of Directors (the “Board of Directors”) approved an 8.0% increase in the quarterly dividend rate to $0.61 per share of Altria Group, Inc. common stock versus the previous rate of $0.565 per share. The current annualized dividend rate is $2.44 per share. Future dividend payments remain subject to the discretion of the Board of Directors.

▪Share Repurchases: In April 2013, the Board of Directors authorized a $300 million share repurchase program and expanded it to $1.0 billion in August 2013 (as expanded, the “April 2013 share repurchase program”). During the third quarter of 2014, Altria Group, Inc. completed the April 2013 share repurchase program, under which Altria Group, Inc. repurchased a total of 27.1 million shares of its common stock at an average price of $36.97 per share.

In July 2014, the Board of Directors authorized a $1.0 billion share repurchase program (the “July 2014 share repurchase program”). During the third quarter of 2015, Altria Group, Inc. completed the July 2014 share repurchase program, under which Altria Group, Inc. repurchased a total of 20.4 million shares of its common stock at an average price of $48.90 per share.

In July 2015, the Board of Directors authorized a $1.0 billion share repurchase program that it expanded to $3.0 billion in October 2016 (as expanded, the “July 2015 share repurchase program”). During 2016 and 2015, Altria Group, Inc. repurchased 16.2 million shares and 0.6 million shares, respectively, of its common stock (at an aggregate cost of approximately $1,030 million and $35 million, respectively, and at an average price of $63.48 per share and $57.66 per share, respectively) under the July 2015 share repurchase program. At December 31, 2016, Altria Group, Inc. had approximately $1,935 million remaining in the July 2015 share repurchase program. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors.

For the years ended December 31, 2016, 2015 and 2014, Altria Group, Inc.’s total share repurchase activity was as follows:



	2016		2015		2014
	(in millions, except per share data)
Total number of shares repurchased	16.2		10.7		22.5
Aggregate cost of shares repurchased	$	1,030	$	554	$	939
Average price per share of shares repurchased	$	63.48	$	51.83	$	41.79