Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The following table provides (i) the aggregate notional amounts of foreign currency contracts and (ii) the aggregate carrying value and fair value of foreign currency denominated debt at December 31:

(in millions)	2021		2020
Foreign currency contracts (notional amounts)	$	—	$	1,066
Foreign currency denominated debt
Carrying value	4,817		5,171
Fair value	5,114		5,687

Altria recorded non-cash, pre-tax unrealized losses, representing the changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant, as follows:

	For the Years Ended December 31,
(in millions)	2021		2020		2019
Fixed-price Preemptive Rights	$	23	$	45	$	434
Cronos warrant	125		95		977
Total	$	148	$	140	$	1,411

The pre-tax effects of Altria’s net investment hedges on accumulated other comprehensive losses and the consolidated statements of earnings (losses) were as follows:

	(Gain) Loss Recognized in Accumulated Other Comprehensive Losses						(Gain) Loss Recognized in Net Earnings (Losses)
	For the Years Ended December 31,
(in millions)	2021		2020		2019		2021		2020		2019
Foreign currency contracts	$	(16)	$	79	$	(23)	$	(7)	$	(40)	$	(36)
Foreign currency denominated debt	(359)		424		(35)		—		—		—
Total	$	(375)	$	503	$	(58)	$	(7)	$	(40)	$	(36)

Aggregate Fair Value and Carrying Value

The following table provides the aggregate carrying value and fair value of Altria’s total long-term debt at December 31:

(in millions)	2021		2020
Carrying value	$	28,044	$	29,471
Fair value	30,459		34,682

Fair Value Measurement Inputs and Valuation Techniques

The fair values of the Fixed-price Preemptive Rights and Cronos warrant are estimated using Black-Scholes option-pricing models, adjusted for observable inputs (which are classified in Level 1 of the fair value hierarchy), including share price, and unobservable inputs, including probability factors and weighting of expected life, volatility levels and risk-free interest rates (which are classified in Level 3 of the fair value hierarchy) based on the following assumptions at December 31:

	2021	2020	2021	2020
	Fixed-price Preemptive Rights		Cronos Warrant
Share price (1)	C$4.98	C$8.84	C$4.98	C$8.84
Expected life (2)	0.59 year	1.05 years	1.18 years	2.18 years
Expected volatility (3)	79.64%	80.68%	79.64%	80.68%
Risk-free interest rate (4)(5)	0.43%	0.13%	0.80%	0.21%
Expected dividend yield (6)	—%	—%	—%	—%

(1) Based on the closing market price for Cronos common stock on the Toronto Stock Exchange on the date indicated.

(2) Based on the weighted-average expected life of the Fixed-price Preemptive Rights (with a range from approximately 0.25 year to 4 years at December 31, 2021 and 0.25 year to 5 years at December 31, 2020) and the March 8, 2023 expiration date of the Cronos warrant.

(3) Based on a blend of historical volatility of the underlying equity security and implied volatility from traded options on the underlying equity security at December 31, 2021. Based on a blend of historical volatility levels of the underlying equity security and peer companies at December 31, 2020.

(4) Based on the implied yield currently available on Canadian Treasury zero coupon issues (with a range from approximately 0.16% to 1.14% at December 31, 2021 and 0.06% to 0.39% at December 31, 2020) weighted for the remaining expected life of the Fixed-price Preemptive Rights.

(5) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the Cronos warrant.

(6) Based on Cronos’s expected dividend payments.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending balance of the Fixed-price Preemptive Rights and Cronos warrant (which are classified in Level 3 of the fair value hierarchy):

(in millions)
Balance at December 31, 2019	$	303
Pre-tax losses recognized in net earnings (losses)	(140)
Balance at December 31, 2020	163
Pre-tax losses recognized in net earnings (losses)	(148)
Balance at December 31, 2021	$	15

Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location

The fair values of Altria’s derivative financial instruments on a gross basis included on the consolidated balance sheets were as follows at December 31:

	Fair Value of Assets					Fair Value of Liabilities
(in millions)	Balance Sheet Classification	2021		2020		Balance Sheet Classification	2021		2020
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	—	Other accrued liabilities	$	—	$	87
Foreign currency contracts	Other assets	—		—		Other liabilities	—		—
Total		$	—	$	—		$	—	$	87
Derivatives not designated as hedging instruments:
Cronos warrant	Investments in equity securities	$	14	$	139
Fixed-price Preemptive Rights	Investments in equity securities	1		24
Total		$	15	$	163
Total derivatives		$	15	$	163		$	—	$	87