Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheets

(in millions of dollars)

____________________________

at December 31, 2019	Altria		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	2,022	$	—	$	95	$	—		$	2,117
Receivables	—		30		122		—			152
Inventories:
Leaf tobacco	—		494		380		—			874
Other raw materials	—		120		72		—			192
Work in process	—		4		692		—			696
Finished product	—		119		412		—			531
	—		737		1,556		—			2,293
Due from Altria and subsidiaries	88		4,005		1,359		(5,452		)	—
Income taxes	80		47		38		(49		)	116
Other current assets	53		17		76		—			146
Total current assets	2,243		4,836		3,246		(5,501		)	4,824
Property, plant and equipment, at cost	—		2,956		2,118		—			5,074
Less accumulated depreciation	—		2,166		909		—			3,075
	—		790		1,209		—			1,999
Goodwill	—		—		5,177		—			5,177
Other intangible assets, net	—		2		12,685		—			12,687
Investments in equity securities	18,071		—		5,510		—			23,581
Investment in consolidated subsidiaries	19,312		2,831		—		(22,143		)	—
Due from Altria and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	58		951		603		(609		)	1,003
Total Assets	$	44,474	$	9,410	$	28,430	$	(33,043	)	$	49,271

Condensed Consolidating Balance Sheets (Continued)

(in millions of dollars)

____________________________

at December 31, 2019	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Liabilities
Current portion of long-term debt	$	1,000		$	—		$	—		$	—		$	1,000
Accounts payable	—			146			179			—			325
Accrued liabilities:
Marketing	—			320			73			—			393
Settlement charges	—			3,340			6			—			3,346
Other	576			482			536			(49		)	1,545
Dividends payable	1,565			—			—			—			1,565
Due to Altria and subsidiaries	4,693			514			245			(5,452		)	—
Total current liabilities	7,834			4,802			1,039			(5,501		)	8,174
Long-term debt	27,042			—			—			—			27,042
Deferred income taxes	3,099			—			2,593			(609		)	5,083
Accrued pension costs	197			—			276			—			473
Accrued postretirement health care costs	—			1,078			719			—			1,797
Due to Altria and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	80			87			178			—			345
Total liabilities	38,252			5,967			9,595			(10,900		)	42,914
Contingencies
Redeemable noncontrolling interest	—			—			38			—			38
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,970			3,310			27,565			(30,875		)	5,970
Earnings reinvested in the business	36,539			352			(6,997		)	6,645			36,539
Accumulated other comprehensive losses	(2,864		)	(219		)	(1,877		)	2,096			(2,864		)
Cost of repurchased stock	(34,358		)	—			—			—			(34,358		)
Total stockholders’ equity attributable to Altria	6,222			3,443			18,700			(22,143		)	6,222
Noncontrolling interests	—			—			97			—			97
Total stockholders’ equity	6,222			3,443			18,797			(22,143		)	6,319
Total Liabilities and Stockholders’ Equity	$	44,474		$	9,410		$	28,430		$	(33,043	)	$	49,271

 

Condensed Consolidating Balance Sheets

(in millions of dollars)

____________________________

at December 31, 2018	Altria		PM USA		Non- Guarantor Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	1,277	$	—	$	56	$	—		$	1,333
Receivables	—		18		124		—			142
Inventories:
Leaf tobacco	—		561		379		—			940
Other raw materials	—		123		63		—			186
Work in process	—		2		645		—			647
Finished product	—		128		430		—			558
	—		814		1,517		—			2,331
Due from Altria and subsidiaries	46		3,828		1,194		(5,068		)	—
Income taxes	100		94		—		(27		)	167
Other current assets	41		167		118		—			326
Total current assets	1,464		4,921		3,009		(5,095		)	4,299
Property, plant and equipment, at cost	—		2,928		2,022		—			4,950
Less accumulated depreciation	—		2,111		901		—			3,012
	—		817		1,121		—			1,938
Goodwill	—		—		5,196		—			5,196
Other intangible assets, net	—		2		12,277		—			12,279
Investments in equity securities	17,696		—		12,800		—			30,496
Investment in consolidated subsidiaries	25,996		2,825		—		(28,821		)	—
Due from Altria and subsidiaries	4,790		—		—		(4,790		)	—
Other assets	193		955		773		(670		)	1,251
Total Assets	$	50,139	$	9,520	$	35,176	$	(39,376	)	$	55,459

Condensed Consolidating Balance Sheets (Continued)

(in millions of dollars)

____________________________

at December 31, 2018	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Liabilities
Short-term borrowings	12,704			—			—			—			12,704
Current portion of long-term debt	$	1,144		$	—		$	—		$	—		$	1,144
Accounts payable	1			91			307			—			399
Accrued liabilities:
Marketing	—			483			103			—			586
Settlement charges	—			3,448			6			—			3,454
Other	295			524			611			(27		)	1,403
Dividends payable	1,503			—			—			—			1,503
Due to Altria and subsidiaries	4,499			407			162			(5,068		)	—
Total current liabilities	20,146			4,953			1,189			(5,095		)	21,193
Long-term debt	11,898			—			—			—			11,898
Deferred income taxes	3,010			—			2,653			(670		)	4,993
Accrued pension costs	187			—			357			—			544
Accrued postretirement health care costs	—			1,072			677			—			1,749
Due to Altria and subsidiaries	—			—			4,790			(4,790		)	—
Other liabilities	111			47			96			—			254
Total liabilities	35,352			6,072			9,762			(10,555		)	40,631
Contingencies
Redeemable noncontrolling interest	—			—			39			—			39
Stockholders’ Equity
Common stock	935			—			9			(9		)	935
Additional paid-in capital	5,961			3,310			25,047			(28,357		)	5,961
Earnings reinvested in the business	43,962			359			2,201			(2,560		)	43,962
Accumulated other comprehensive losses	(2,547		)	(221		)	(1,884		)	2,105			(2,547		)
Cost of repurchased stock	(33,524		)	—			—			—			(33,524		)
Total stockholders’ equity attributable to Altria	14,787			3,448			25,373			(28,821		)	14,787
Noncontrolling interests	—			—			2			—			2
Total stockholders’ equity	14,787			3,448			25,375			(28,821		)	14,789
Total Liabilities and Stockholders’ Equity	$	50,139		$	9,520		$	35,176		$	(39,376	)	$	55,459

Condensed Consolidating of Earnings and Comprehensive Earnings Income Statement

Condensed Consolidating Statements of Earnings (Losses) and Comprehensive Earnings (Losses)

(in millions of dollars)

_____________________________

for the year ended December 31, 2019	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	21,065		$	4,081		$	(36	)	$	25,110
Cost of sales	—			5,997			1,124			(36		)	7,085
Excise taxes on products	—			5,111			203			—			5,314
Gross profit	—			9,957			2,754			—			12,711
Marketing, administration and research costs	182			1,591			453			—			2,226
Asset impairment and exit costs	1			39			119			—			159
Operating (expense) income	(183		)	8,327			2,182			—			10,326
Interest and other debt expense (income), net	1,152			(85		)	213			—			1,280
Net periodic benefit (income) cost, excluding service cost	5			(34		)	(8		)	—			(37		)
Earnings from equity investments	(1,229		)	—			(496		)	—			(1,725		)
Impairment of JUUL equity securities	—			—			8,600			—			8,600
Loss on Cronos-related financial instruments	—			—			1,442			—			1,442
Earnings (losses) before income taxes and equity earnings of subsidiaries	(111		)	8,446			(7,569		)	—			766
Provision (benefit) for income taxes	(243		)	2,102			205			—			2,064
Equity earnings (losses) of subsidiaries	(1,425		)	450			—			975			—
Net earnings (losses)	(1,293		)	6,794			(7,774		)	975			(1,298		)
Net (earnings) losses attributable to noncontrolling interests	—			—			5			—			5
Net earnings (losses) attributable to Altria	$	(1,293	)	$	6,794		$	(7,769	)	$	975		$	(1,293	)
Net earnings (losses)	$	(1,293	)	$	6,794		$	(7,774	)	$	975		$	(1,298	)
Other comprehensive earnings (losses), net of deferred income taxes	(317		)	2			7			(9		)	(317		)
Comprehensive earnings (losses)	(1,610		)	6,796			(7,767		)	966			(1,615		)
Comprehensive (earnings) losses attributable to noncontrolling interests	—			—			5			—			5
Comprehensive earnings (losses) attributable to Altria	$	(1,610	)	$	6,796		$	(7,762	)	$	966		$	(1,610	)

Condensed Consolidating Statements of Earnings (Losses) and Comprehensive Earnings (Losses)

(in millions of dollars)

_____________________________

for the year ended December 31, 2018	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	21,422		$	3,980		$	(38	)	$	25,364
Cost of sales	—			6,153			1,258			(38		)	7,373
Excise taxes on products	—			5,517			220			—			5,737
Gross profit	—			9,752			2,502			—			12,254
Marketing, administration and research costs	219			1,892			645			—			2,756
Asset impairment and exit costs	—			81			302			—			383
Operating (expense) income	(219		)	7,779			1,555			—			9,115
Interest and other debt expense (income), net	511			(61		)	215			—			665
Net periodic benefit (income) cost, excluding service cost	16			(41		)	(9		)	—			(34		)
Earnings from equity investments	(890		)	—			—			—			(890		)
(Gain) loss on ABI/SABMiller business combination	33			—			—			—			33
Earnings (losses) before income taxes and equity earnings of subsidiaries	111			7,881			1,349			—			9,341
Provision (benefit) for income taxes	36			1,980			358			—			2,374
Equity earnings (losses) of subsidiaries	6,888			402			—			(7,290		)	—
Net earnings (losses)	6,963			6,303			991			(7,290		)	6,967
Net (earnings) losses attributable to noncontrolling interests	—			—			(4		)	—			(4		)
Net earnings (losses) attributable to Altria	$	6,963		$	6,303		$	987		$	(7,290	)	$	6,963
Net earnings (losses)	$	6,963		$	6,303		$	991		$	(7,290	)	$	6,967
Other comprehensive earnings (losses), net of deferred income taxes	(242		)	104			(54		)	(50		)	(242		)
Comprehensive earnings (losses)	6,721			6,407			937			(7,340		)	6,725
Comprehensive (earnings) losses attributable to noncontrolling interests	—			—			(4		)	—			(4		)
Comprehensive earnings (losses) attributable to Altria	$	6,721		$	6,407		$	933		$	(7,340	)	$	6,721

Condensed Consolidating Statements of Earnings (Losses) and Comprehensive Earnings (Losses)

(in millions of dollars)

_____________________________

for the year ended December 31, 2017	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Net revenues	$	—		$	21,826		$	3,787		$	(37	)	$	25,576
Cost of sales	—			6,394			1,174			(37		)	7,531
Excise taxes on products	—			5,864			218			—			6,082
Gross profit	—			9,568			2,395			—			11,963
Marketing, administration and research costs	161			1,713			464			—			2,338
Asset impairment and exit costs	—			—			32			—			32
Operating (expense) income	(161		)	7,855			1,899			—			9,593
Interest and other debt expense (income), net	510			(20		)	215			—			705
Net periodic benefit (income) cost, excluding service cost	12			18			7			—			37
Earnings from equity investments	(532		)	—			—			—			(532		)
(Gain) loss on ABI/SABMiller business combination	(445		)	—			—			—			(445		)
Earnings (losses) before income taxes and equity earnings of subsidiaries	294			7,857			1,677			—			9,828
Provision (benefit) for income taxes	(2,624		)	3,127			(902		)	—			(399		)
Equity earnings (losses) of subsidiaries	7,304			558			—			(7,862		)	—
Net earnings (losses)	10,222			5,288			2,579			(7,862		)	10,227
Net (earnings) losses attributable to noncontrolling interests	—			—			(5		)	—			(5		)
Net earnings (losses) attributable to Altria	$	10,222		$	5,288		$	2,574		$	(7,862	)	$	10,222
Net earnings (losses)	$	10,222		$	5,288		$	2,579		$	(7,862	)	$	10,227
Other comprehensive earnings (losses), net of deferred income taxes	155			3			214			(217		)	155
Comprehensive earnings (losses)	10,377			5,291			2,793			(8,079		)	10,382
Comprehensive (earnings) losses attributable to noncontrolling interests	—			—			(5		)	—			(5		)
Comprehensive earnings (losses) attributable to Altria	$	10,377		$	5,291		$	2,788		$	(8,079	)	$	10,377

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statements of Cash Flows

(in millions of dollars)

_____________________________

for the year ended December 31, 2019	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by (Used In) Operating Activities
Net cash provided by (used in) operating activities	$	7,769		$	6,936		$	1,362		$	(8,230	)	$	7,837
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(56		)	(190		)	—			(246		)
Investment in Cronos	—			—			(1,899		)	—			(1,899		)
Acquisitions of businesses and assets	—			—			(421		)	—			(421		)
Investment in JUUL	—			—			(5		)	—			(5		)
Investment in consolidated subsidiaries	(2,518		)	—			—			2,518			—
Other, net	41			1			131			—			173
Net cash provided by (used in) investing activities	(2,477		)	(55		)	(2,384		)	2,518			(2,398		)
Cash Provided by (Used in) Financing Activities
Repayment of short-term borrowings	(12,800		)	—			—			—			(12,800		)
Long-term debt issued	16,265			—			—			—			16,265
Long-term debt repaid	(1,144		)	—			—			—			(1,144		)
Repurchases of common stock	(845		)	—			—			—			(845		)
Dividends paid on common stock	(6,069		)	—			—			—			(6,069		)
Changes in amounts due to/from Altria and subsidiaries	169			(137		)	2,486			(2,518		)	—
Cash dividends paid to parent	—			(6,801		)	(1,429		)	8,230			—
Other, net	(123		)	—			4			—			(119		)
Net cash provided by (used in) financing activities	(4,547		)	(6,938		)	1,061			5,712			(4,712		)
Cash, cash equivalents and restricted cash (1):
Increase (decrease)	745			(57		)	39			—			727
Balance at beginning of year	1,277			100			56			—			1,433
Balance at end of year	$	2,022		$	43		$	95		$	—		$	2,160

⁽¹⁾ Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 19. Contingencies.

Condensed Consolidating Statements of Cash Flows

(in millions of dollars)

_____________________________

for the year ended December 31, 2018	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by (Used In) Operating Activities
Net cash provided by (used in) operating activities	$	6,907		$	7,580		$	1,354		$	(7,450	)	$	8,391
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(57		)	(181		)	—			(238		)
Acquisitions of businesses and assets	—			—			(15		)	—			(15		)
Investment in JUUL	—			—			(12,800		)	—			(12,800		)
Investment in consolidated subsidiaries	(13,003		)	—			—			13,003			—
Other, net	35			—			30			—			65
Net cash provided by (used in) investing activities	(12,968		)	(57		)	(12,966		)	13,003			(12,988		)
Cash Provided by (Used in) Financing Activities
Proceeds from short-term borrowings	12,800			—			—			—			12,800
Long-term debt repaid	(864		)	—			—			—			(864		)
Repurchases of common stock	(1,673		)	—			—			—			(1,673		)
Dividends paid on common stock	(5,415		)	—			—			—			(5,415		)
Changes in amounts due to/from Altria and subsidiaries	1,415			(1,388		)	12,976			(13,003		)	—
Cash dividends paid to parent	—			(6,097		)	(1,353		)	7,450			—
Other	(128		)	—			(4		)	—			(132		)
Net cash provided by (used in) financing activities	6,135			(7,485		)	11,619			(5,553		)	4,716
Cash, cash equivalents and restricted cash (1):
Increase (decrease)	74			38			7			—			119
Balance at beginning of year	1,203			62			49			—			1,314
Balance at end of year	$	1,277		$	100		$	56		$	—		$	1,433

⁽¹⁾ Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 19. Contingencies.

Condensed Consolidating Statements of Cash Flows

(in millions of dollars)

_____________________________

for the year ended December 31, 2017	Altria			PM USA			Non- Guarantor Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash Provided by (Used In) Operating Activities
Net cash provided by (used in) operating activities	$	6,910		$	4,028		$	841		$	(6,878	)	$	4,901
Cash Provided by (Used in) Investing Activities
Capital expenditures	—			(34		)	(165		)	—			(199		)
Acquisitions of businesses and assets	—			—			(415		)	—			(415		)
Investment in consolidated subsidiaries	(460		)	—			—			460			—
Other, net	(5		)	4			148			—			147
Net cash provided by (used in) investing activities	(465		)	(30		)	(432		)	460			(467		)
Cash Provided by (Used in) Financing Activities
Repurchases of common stock	(2,917		)	—			—			—			(2,917		)
Dividends paid on common stock	(4,807		)	—			—			—			(4,807		)
Changes in amounts due to/from Altria and subsidiaries	(1,999		)	1,410			1,049			(460		)	—
Cash dividends paid to parent	—			(5,429		)	(1,449		)	6,878			—
Other	(40		)	—			(7		)	—			(47		)
Net cash provided by (used in) financing activities	(9,763		)	(4,019		)	(407		)	6,418			(7,771		)
Cash, cash equivalents and restricted cash (1):
Increase (decrease)	(3,318		)	(21		)	2			—			(3,337		)
Balance at beginning of year	4,521			83			47			—			4,651
Balance at end of year	$	1,203		$	62		$	49		$	—		$	1,314

⁽¹⁾ Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 19. Contingencies.