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Goodwill and Other Intangible Assets, net
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, net
Goodwill and Other Intangible Assets, net
Goodwill and other intangible assets, net, by segment were as follows:
 
Goodwill
 
Other Intangible Assets, net
(in millions)
December 31, 2018

 
December 31, 2017

 
December 31, 2018

 
December 31, 2017

Smokeable products
$
99

 
$
99

 
$
3,037

 
$
3,054

Smokeless products
5,023

 
5,023

 
8,825

 
8,827

Wine
74

 
74

 
239

 
294

Other

 
111

 
178

 
225

Total
$
5,196

 
$
5,307

 
$
12,279

 
$
12,400


Goodwill relates to the 2017 acquisition of Nat Sherman, the 2014 acquisition of Green Smoke, Inc. and its affiliates, the 2009 acquisition of UST and the 2007 acquisition of Middleton.
Other intangible assets consisted of the following: 
 
December 31, 2018
 
December 31, 2017
(in millions)
Gross Carrying Amount

 
Accumulated Amortization

 
Gross Carrying Amount

 
Accumulated Amortization

Indefinite-lived intangible assets
$
11,846

 
$

 
$
12,125

 
$

Definite-lived intangible assets
654

 
221

 
465

 
190

Total other intangible assets
$
12,500

 
$
221

 
$
12,590

 
$
190


At December 31, 2018, indefinite-lived intangible assets consist substantially of trademarks from Altria’s 2009 acquisition of UST ($9.0 billion) and 2007 acquisition of Middleton ($2.6 billion). Definite-lived intangible assets, which consist primarily of customer relationships, certain cigarette trademarks and intellectual property, are amortized over periods up to 25 years. Pre-tax amortization expense for definite-lived intangible assets during the years ended December 31, 2018, 2017 and 2016, was $38 million, $21 million and $21 million, respectively. Annual amortization expense for each of the next five years is estimated to be approximately $30 million, assuming no additional transactions occur that require the amortization of intangible assets.
The changes in goodwill and net carrying amount of intangible assets are as follows:
 
2018
 
2017
(in millions)
Goodwill
 
Other Intangible Assets, net
 
Goodwill
 
Other Intangible Assets, net
Balance at January 1
$
5,307

 
$
12,400

 
$
5,285

 
$
12,036

Changes due to:
 
 
 
 
 
 
 
   Acquisitions (1)

 
15

 
22

 
385

   Asset impairment (2) 
(111
)
 
(98
)
 

 

   Amortization

 
(38
)
 

 
(21
)
Balance at December 31
$
5,196

 
$
12,279

 
$
5,307

 
$
12,400

(1) Reflects the 2018 and 2017 purchase of certain intellectual property primarily related to innovative tobacco products, and the 2017 acquisition of Nat Sherman.
(2) Reflects asset impairment of goodwill and other intangible assets, net related to e-vapor products, and the Columbia Crest trademark.
During 2018, Altria recorded goodwill and other intangible asset impairment charges of $111 million and $44 million, respectively, related to Altria’s decision in the fourth quarter of 2018 to refocus its innovative product efforts, which includes the discontinuation of production and distribution of all MarkTen and Green Smoke e-vapor products.
In addition, during 2018, Altria completed its quantitative annual impairment test of goodwill and indefinite-lived intangible assets. Upon completion of this testing, Altria concluded, in the wine segment, that the Columbia Crest trademark of $54 million was fully impaired as Columbia Crest has been negatively impacted by an accelerated decline in the $7 to $10 premium wine segment, increased competition and reduction in trade support.
During 2017 and 2016, Altria’s quantitative annual impairment test of goodwill and indefinite-lived intangible assets resulted in no impairment charges. In addition, there were no accumulated impairment losses related to goodwill and other intangible assets, net at December 31, 2017.