Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2017

Segment data were as follows:



	For the Years Ended December 31,
(in millions)	2017			2016			2015
Net revenues:
Smokeable products	$	22,636		$	22,851		$	22,792
Smokeless products	2,155			2,051			1,879
Wine	698			746			692
All other	87			96			71
Net revenues	$	25,576		$	25,744		$	25,434
Earnings before income taxes:
Operating companies income (loss):
Smokeable products	$	8,408		$	7,768		$	7,569
Smokeless products	1,300			1,177			1,108
Wine	147			164			152
All other	(51		)	(99		)	(169		)
Amortization of intangibles	(21		)	(21		)	(21		)
General corporate expenses	(227		)	(222		)	(237		)
Reduction of PMI tax-related receivable	—			—			(41		)
Corporate asset impairment and exit costs	—			(5		)	—
Operating income	9,556			8,762			8,361
Interest and other debt expense, net	(705		)	(747		)	(817		)
Loss on early extinguishment of debt	—			(823		)	(228		)
Earnings from equity investment in AB InBev/SABMiller	532			795			757
Gain on AB InBev/SABMiller business combination	445			13,865			5
Earnings before income taxes	$	9,828		$	21,852		$	8,078

Schedule of Depreciation Expense and Capital Expenditures of Segments

Details of Altria Group, Inc.’s depreciation expense and capital expenditures were as follows:



	For the Years Ended December 31,
(in millions)	2017		2016		2015
Depreciation expense:
Smokeable products	$	93	$	93	$	117
Smokeless products	29		26		27
Wine	40		36		32
General corporate and other	26		28		28
Total depreciation expense	$	188	$	183	$	204
Capital expenditures:
Smokeable products	$	39	$	55	$	56
Smokeless products	61		52		113
Wine	53		59		42
General corporate and other	46		23		18
Total capital expenditures	$	199	$	189	$	229

Schedule of NPM Adjustment Items

For the years ended December 31, 2017, 2016 and 2015, pre-tax expense (income) for NPM adjustment items was recorded in Altria Group, Inc.’s consolidated statements of earnings as follows:



(in millions)	2017			2016		2015
Smokeable products segment	$	(5	)	$	12	$	(97	)
Interest and other debt expense, net	9			6		13
Total	$	4		$	18	$	(84	)

Schedule of Pre-tax Tobacco and Health Litigation Charges

For the years ended December 31, 2017, 2016 and 2015, pre-tax charges related to certain tobacco and health litigation items were recorded in Altria Group, Inc.’s consolidated statements of earnings as follows:



(in millions)	2017		2016		2015
Smokeable products segment	$	72	$	88	$	127
Interest and other debt expense, net	8		17		23
Total	$	80	$	105	$	150

Schedule Of Pre-Tax Charges (Gains) Included In Net Earnings

As a result of the 2017 lump sum distributions, a one-time pre-tax settlement charge of $81 million was recorded in 2017 in Altria Group, Inc.’s consolidated statement of earnings as follows:



For the Year Ended December 31, 2017
(in millions)	Cost of Sales		Marketing, Administration and Research Costs		Total
Smokeable products	$	39	$	18	$	57
Smokeless products	—		16		16
General corporate and other	—		8		8
Total	$	39	$	42	$	81

During 2017 and 2016, the following pre-tax charges or (gains) were included in net earnings attributable to Altria Group, Inc.:



	2017 Quarters
(in millions)	1st			2nd			3rd			4th
NPM Adjustment Items	$	(1	)	$	—		$	5		$	—
Tobacco and health litigation items, including accrued interest	1			17			—			62
Asset impairment, exit, implementation and acquisition-related costs	30			30			17			12
Settlement charge for lump sum pension payments	—			—			—			81
Gain on AB InBev/SABMiller business combination	—			(408		)	(37		)	—
AB InBev special items	73			2			34			51
	$	103		$	(359	)	$	19		$	206

	2016 Quarters
(in millions)	1st			2nd			3rd			4th
NPM Adjustment Items	$	18		$	—		$	—		$	—
Tobacco and health litigation items, including accrued interest	38			5			45			17
Patent litigation settlement	—			—			—			21
Asset impairment, exit, implementation and acquisition-related costs	122			5			6			73
Loss on early extinguishment of debt	—			—			823			—
Gain on AB InBev/SABMiller business combination	(40		)	(117		)	(48		)	(13,660		)
SABMiller special items	166			21			(40		)	(236		)
	$	304		$	(86	)	$	786		$	(13,785	)