Asset Impairment, Exit and Implementation Costs

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Asset Impairment, Exit and Implementation Costs

Asset Impairment, Exit and Implementation Costs:

Pre-tax asset impairment, exit and implementation costs recorded in connection with the facilities consolidation, as discussed below, consisted of the following:



	For the Three Months Ended March 31, 2018						For the Three Months Ended March 31, 2017
	Asset Impairment and Exit Costs		Implementation Costs ⁽¹⁾		Total		Asset Impairment and Exit Costs		Implementation Costs ⁽¹⁾		Total
	(in millions)
Smokeable products	$	—	$	1	$	1	$	1	$	5	$	6
Smokeless products	2		—		2		3		18		21
Total	$	2	$	1	$	3	$	4	$	23	$	27

⁽¹⁾ The pre-tax implementation costs were included in cost of sales in Altria Group, Inc.’s condensed consolidated statements of earnings.

The movement in the restructuring liabilities (excluding termination, settlement and curtailment costs), substantially all of which are severance liabilities, was as follows:



	For the Three Months Ended March 31, 2018
	(in millions)
Balances at December 31, 2017	$	33
Charges	2
Cash spent	(9		)
Balances at March 31, 2018	$	26

Facilities Consolidation

In October 2016, Altria Group, Inc. announced the consolidation of certain of its operating companies’ manufacturing facilities to streamline operations and achieve greater efficiencies. In the first quarter of 2018, Middleton completed the transfer of its Limerick, Pennsylvania operations to the Manufacturing Center site in Richmond, Virginia (“Richmond Manufacturing Center”), and USSTC completed the transfer of its Franklin Park, Illinois operations to its Nashville, Tennessee facility and the Richmond Manufacturing Center. The pre-tax charges related to the consolidation have been substantially completed.

As a result of the consolidation, Altria Group, Inc. has recorded total pre-tax charges of approximately $150 million, or $0.05 per share since inception.

Cash payments related to the consolidation of $10 million were made during the three months ended March 31, 2018 for total cash payments of $73 million since inception. Altria Group, Inc. expects a total of approximately $100 million in cash expenditures.