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Long-Term Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Altria’s long-term debt consisted of the following at December 31:
(in millions)20212020
USD notes, 2.350% to 10.20%, interest payable semi-annually, due through 2061 (1)
$23,185 $24,258 
USD debenture, 7.75%, interest payable semi-annually, due 2027
42 42 
Euro notes, 1.000% to 3.125%, interest payable annually, due through 2031 (2)
4,817 5,171 
28,044 29,471 
Less current portion of long-term debt1,105 1,500 
$26,939 $27,971 
(1) Weighted-average coupon interest rate of 4.4% and 4.6% at December 31, 2021 and 2020, respectively.
(2) Weighted-average coupon interest rate of 2.0% at December 31, 2021 and 2020.
At December 31, 2021, Altria’s outstanding long-term debt consisted of the following:
(in millions)
TypeFace ValueInterest RateIssuanceMaturity
USD notes$1,1052.850%August 2012August 2022
Euro notes€1,2501.000%February 2019February 2023
USD notes$2182.950%May 2013May 2023
USD notes$7764.000%October 2013January 2024
USD notes$3453.800%February 2019February 2024
USD notes$7502.350%May 2020May 2025
Euro notes€7501.700%February 2019June 2025
USD notes$1,0694.400%February 2019February 2026
USD notes$5002.625%September 2016September 2026
USD debenture$427.750%January 1997January 2027
Euro notes€1,0002.200%February 2019June 2027
USD notes$1,9064.800%February 2019February 2029
USD notes$7503.400%May 2020May 2030
Euro notes€1,2503.125%February 2019June 2031
USD notes$1,7502.450%February 2021February 2032
USD notes$1779.950%November 2008November 2038
USD notes$20810.200%February 2009February 2039
USD notes$2,0005.800%February 2019February 2039
USD notes$1,5003.400%February 2021February 2041
USD notes$9004.250%August 2012August 2042
USD notes$6504.500%May 2013May 2043
USD notes$1,8005.375%October 2013January 2044
USD notes$1,5003.875%September 2016September 2046
USD notes$2,5005.950%February 2019February 2049
USD notes$5004.450%May 2020May 2050
USD notes$1,2503.700%February 2021February 2051
USD notes$2716.200%February 2019February 2059
USD notes$1,0004.000%February 2021February 2061
At December 31, 2021, aggregate maturities of Altria’s long-term debt were as follows:
(in millions)Aggregate Maturities
2022$1,105 
20231,639 
20241,121 
20251,603 
20261,569 
Thereafter21,262 
28,299 
Less:debt issuance costs163 
debt discounts92 
$28,044 
At December 31, 2021 and 2020, accrued interest on long-term debt of $429 million and $458 million, respectively, was included in other accrued liabilities on Altria’s consolidated balance sheets.
▪Altria Senior Notes: In February 2021, Altria issued long-term senior unsecured notes in the aggregate principal amount of $5.5 billion (the “Notes”). The net proceeds from the Notes were used (i) to fund the purchase and redemption of certain unsecured notes and payment of related fees and expenses, as described below, and (ii) for other general corporate purposes. The Notes contain the following terms:
▪$1.75 billion at 2.450%, due 2032, interest payable semiannually beginning August 4, 2021;
▪$1.50 billion at 3.400%, due 2041, interest payable semiannually beginning August 4, 2021;
▪$1.25 billion at 3.700%, due 2051, interest payable semiannually beginning August 4, 2021; and
▪$1.00 billion at 4.000%, due 2061, interest payable semiannually beginning August 4, 2021.
The Notes are Altria’s senior unsecured obligations and rank equally in right of payment with all of Altria’s existing and future senior unsecured indebtedness. Upon the occurrence of both (i) a change of control of Altria and (ii) the Notes ceasing to be rated investment grade by each of Moody’s, S&P and Fitch Ratings Inc. within a specified time period, Altria will be required to make an offer to purchase the Notes at a price equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to the date of repurchase as and to the extent set forth in the terms of the Notes.
In May 2021, Altria repaid in full its 4.75% senior unsecured notes in the aggregate principal amount of $1.5 billion at maturity.
▪Debt Tender Offers and Redemption: During the first quarter of 2021, Altria completed debt tender offers to purchase for cash certain of its long-term senior unsecured notes in an aggregate principal amount of $4,042 million. Details of the debt tender offers are as follows:
(in millions)Principal Amount of Notes Purchased
2.850% Notes due 2022
$795 
2.950% Notes due 2023
132 
4.000% Notes due 2024
624 
3.800% Notes due 2024
655 
4.400% Notes due 2026
430 
4.800% Notes due 2029
1,094 
9.950% Notes due 2038
65 
10.200% Notes due 2039
18 
6.200% Notes due 2059
229 
$4,042 
During the first quarter of 2021, Altria also redeemed all of its outstanding 3.490% Notes due 2022 in an aggregate principal amount of $1.0 billion.
As a result of the debt tender offers and redemption, Altria recorded pre-tax losses on early extinguishment of debt as follows:
(in millions)For the Year Ended December 31, 2021
Premiums and fees$623 
Write-off of unamortized debt discounts and debt issuance costs26 
Total$649 
PM USA (the “Guarantor”), which is a 100% owned subsidiary of Altria Group, Inc. (the “Parent”), has guaranteed the Parent’s obligations under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper program (the “Guarantees”). Pursuant to the Guarantees, the Guarantor fully and unconditionally guarantees, as primary obligor, the payment and performance of the Parent’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below.
The Guarantees provide that the Guarantor guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of the Guarantor under the Guarantees is absolute and unconditional irrespective of: any lack of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Parent or the Guarantor.
The Parent is a holding company; therefore, its access to the operating cash flows of its wholly owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries. Neither the Guarantor nor other 100% owned subsidiaries of the Parent that are not guarantors of the Obligations are limited by contractual obligations on their ability to pay cash dividends or make other distributions with respect to their equity interests.
For a discussion of the fair value of Altria’s long-term debt and the designation of its Euro denominated senior unsecured notes as a net investment hedge of its investment in ABI, see Note 7. Financial Instruments.