Altria Group, Inc. (MO)

FORM 10-Q | Quarterly Report
Jul. 30, 2019 10:40 AM
|
About: Altria Group, Inc. (MO)View as PDF
ALTRIA GROUP, INC. (Form: 10-Q, Received: 07/30/2019 10:40:44)
false--12-31Q22019000076418006000000100000050000002000000400000080000002000000100000010000001000000100000040000001000000200000016000000800000010000002000000100000010000008000000700000020000003000000120000001000000160000021000000000500000000100000020000000160000009000000300000000500000010000000200000001000000000.701.400.801.600.33330.333328059613172805961317P5Y2.013.692.324177000000001000000100000010000005000000100000010000004200000030000001100000080000002100000011000000500000020000004000000200000010000002600000060000001000000200000017900000012000000931903722937872295 0000764180 2019-01-01 2019-06-30 0000764180 mo:CommonStock1.000NotesDue2023Member 2019-01-01 2019-06-30 0000764180 mo:CommonStock1.700NotesDue2025Member 2019-01-01 2019-06-30 0000764180 mo:CommonStock2.200NotesDue2027Member 2019-01-01 2019-06-30 0000764180 mo:CommonStock0.3313ParValueMember 2019-01-01 2019-06-30 0000764180 mo:CommonStock3.125NotesDue2031Member 2019-01-01 2019-06-30 0000764180 2019-07-22 0000764180 2018-12-31 0000764180 2019-06-30 0000764180 2018-01-01 2018-06-30 0000764180 2019-04-01 2019-06-30 0000764180 2018-04-01 2018-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000764180 us-gaap:NoncontrollingInterestMember 2018-06-30 0000764180 us-gaap:NoncontrollingInterestMember 2017-12-31 0000764180 us-gaap:RetainedEarningsMember 2018-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000764180 us-gaap:TreasuryStockMember 2018-01-01 2018-06-30 0000764180 us-gaap:TreasuryStockMember 2017-12-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000764180 2018-06-30 0000764180 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0000764180 2017-12-31 0000764180 us-gaap:RetainedEarningsMember 2017-12-31 0000764180 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-06-30 0000764180 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000764180 us-gaap:CommonStockMember 2018-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000764180 us-gaap:CommonStockMember 2017-12-31 0000764180 us-gaap:TreasuryStockMember 2018-06-30 0000764180 us-gaap:NoncontrollingInterestMember 2019-06-30 0000764180 us-gaap:NoncontrollingInterestMember 2018-12-31 0000764180 us-gaap:CommonStockMember 2018-12-31 0000764180 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000764180 us-gaap:TreasuryStockMember 2018-12-31 0000764180 us-gaap:RetainedEarningsMember 2018-12-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000764180 us-gaap:CommonStockMember 2019-06-30 0000764180 us-gaap:TreasuryStockMember 2019-01-01 2019-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000764180 us-gaap:RetainedEarningsMember 2019-06-30 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000764180 us-gaap:TreasuryStockMember 2019-06-30 0000764180 us-gaap:CommonStockMember 2019-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000764180 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000764180 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000764180 us-gaap:TreasuryStockMember 2019-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000764180 2019-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000764180 us-gaap:NoncontrollingInterestMember 2019-03-31 0000764180 us-gaap:RetainedEarningsMember 2019-03-31 0000764180 us-gaap:TreasuryStockMember 2018-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000764180 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000764180 us-gaap:RetainedEarningsMember 2018-03-31 0000764180 2018-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000764180 us-gaap:CommonStockMember 2018-03-31 0000764180 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000764180 us-gaap:NoncontrollingInterestMember 2018-03-31 0000764180 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0000764180 mo:CronosGroupInc.Member 2019-06-30 0000764180 mo:CronosGroupInc.Member 2019-03-31 0000764180 mo:January2018ShareRepurchaseProgramMember 2018-01-01 2019-06-30 0000764180 mo:JUULMember 2019-06-30 0000764180 mo:July2019ShareRepurchaseProgramMember us-gaap:SubsequentEventMember 2019-07-31 0000764180 mo:January2018ShareRepurchaseProgramMember 2018-01-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2015-07-01 2018-01-31 0000764180 mo:January2018ShareRepurchaseProgramMember 2018-05-31 0000764180 mo:ABInBevMember 2019-06-30 0000764180 mo:July2015ShareRepurchaseProgramMember 2015-07-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2016-10-31 0000764180 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000764180 mo:JUULMember 2018-12-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2017-07-31 0000764180 mo:CostReductionProgramMember 2019-06-30 0000764180 mo:RefocusofInnovativeProductEffortsMember 2018-01-01 2018-12-31 0000764180 mo:AssetImpairmentandExitCostsMember mo:RefocusofInnovativeProductEffortsMember 2018-01-01 2018-12-31 0000764180 mo:CostReductionProgramMember 2018-01-01 2018-12-31 0000764180 mo:AssetImpairmentandExitCostsMember mo:CostReductionProgramMember 2019-04-01 2019-06-30 0000764180 us-gaap:CostOfSalesMember 2019-01-01 2019-06-30 0000764180 mo:CostReductionProgramMember 2019-04-01 2019-06-30 0000764180 us-gaap:EmployeeSeveranceMember mo:CostReductionProgramMember 2019-06-30 0000764180 us-gaap:CostOfSalesMember 2019-04-01 2019-06-30 0000764180 mo:AssetImpairmentandExitCostsMember mo:CostReductionProgramMember 2019-01-01 2019-06-30 0000764180 mo:CostReductionProgramMember 2018-12-01 2019-06-30 0000764180 us-gaap:OtherRestructuringMember mo:RefocusofInnovativeProductEffortsMember 2018-01-01 2018-12-31 0000764180 us-gaap:OtherRestructuringMember mo:CostReductionProgramMember 2019-06-30 0000764180 mo:CostReductionProgramMember 2019-01-01 2019-06-30 0000764180 mo:MarketingAdministrationAndResearchCostsMember 2019-04-01 2019-06-30 0000764180 mo:CostReductionProgramMember 2018-12-01 2018-12-31 0000764180 mo:MarketingAdministrationAndResearchCostsMember 2018-01-01 2018-06-30 0000764180 mo:RefocusofInnovativeProductEffortsMember 2019-01-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokelessProductsMember 2018-04-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokelessProductsMember 2019-04-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokeableProductsMember 2018-04-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokeableProductsMember 2019-04-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokeableProductsMember 2019-01-01 2019-06-30 0000764180 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokeableProductsMember 2018-01-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokelessProductsMember 2018-01-01 2018-06-30 0000764180 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:SmokelessProductsMember 2019-01-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000764180 mo:RefocusofInnovativeProductEffortsMember 2019-04-01 2019-06-30 0000764180 mo:ABInBevMember 2018-12-31 0000764180 mo:CronosGroupInc.Member 2018-12-31 0000764180 mo:CronosGroupInc.Member 2019-01-01 2019-06-30 0000764180 mo:ABInBevMember 2019-01-01 2019-06-30 0000764180 mo:CronosGroupInc.Member 2018-04-01 2018-06-30 0000764180 mo:ABInBevMember 2019-04-01 2019-06-30 0000764180 mo:CronosGroupInc.Member 2019-04-01 2019-06-30 0000764180 mo:ABInBevMember 2018-01-01 2018-06-30 0000764180 mo:CronosGroupInc.Member 2018-01-01 2018-06-30 0000764180 mo:ABInBevMember 2018-04-01 2018-06-30 0000764180 mo:ABInBevMember us-gaap:SubsequentEventMember 2019-07-23 2019-07-23 0000764180 mo:CronosGroupInc.Member mo:EquityContractWarrantMember 2019-06-30 0000764180 mo:CronosGroupInc.Member mo:EquityContractPreemptiveRIghtsMember 2019-06-30 0000764180 mo:CronosGroupInc.Member us-gaap:CommonStockMember 2019-06-30 0000764180 mo:ABInBevMember 2018-01-01 2018-12-31 0000764180 mo:JUULMember 2018-12-01 2018-12-31 0000764180 mo:CronosGroupInc.Member 2019-03-31 2019-03-31 0000764180 mo:CronosGroupInc.Member mo:EquityContractWarrantMember 2019-03-31 0000764180 mo:CronosGroupInc.Member mo:EquityContractPreemptiveRIghtsMember 2019-03-31 0000764180 mo:CronosGroupInc.Member mo:EquityContractPreemptiveRIghtsMember 2019-03-31 2019-03-31 0000764180 mo:CronosGroupInc.Member mo:EquityContractWarrantMember 2019-03-31 2019-03-31 0000764180 mo:EquityContractWarrantMember 2019-03-31 0000764180 us-gaap:NetInvestmentHedgingMember 2019-06-30 0000764180 us-gaap:OtherAssetsMember mo:EquityContractWarrantMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2019-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000764180 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000764180 mo:OtherAccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000764180 us-gaap:OtherAssetsMember mo:EquityContractPreemptiveRIghtsMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2018-12-31 0000764180 us-gaap:EquityContractMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2018-12-31 0000764180 us-gaap:EquityContractMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2019-06-30 0000764180 us-gaap:NetInvestmentHedgingMember 2018-12-31 0000764180 mo:OtherAccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000764180 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000764180 us-gaap:OtherAssetsMember mo:EquityContractWarrantMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2018-12-31 0000764180 us-gaap:OtherLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000764180 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000764180 us-gaap:OtherAssetsMember mo:EquityContractPreemptiveRIghtsMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2019-06-30 0000764180 us-gaap:OtherLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000764180 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000764180 mo:EquityContractWarrantMember 2019-04-01 2019-06-30 0000764180 mo:EquityContractWarrantMember 2019-01-01 2019-06-30 0000764180 mo:EquityContractPreemptiveRIghtsMember 2019-04-01 2019-06-30 0000764180 mo:CronosGroupInc.Member 2019-03-07 2019-03-07 0000764180 srt:MinimumMember mo:EquityContractPreemptiveRIghtsMember mo:MeasurementInputWeightedAverageExpectedTermMember 2019-06-30 0000764180 mo:ForeignCurrencyDenominatedDebtMember 2019-06-30 0000764180 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2019-03-07 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2019-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2018-12-31 0000764180 mo:EquityContractPreemptiveRIghtsMember 2019-01-01 2019-06-30 0000764180 srt:MaximumMember mo:EquityContractPreemptiveRIghtsMember mo:MeasurementInputWeightedAverageExpectedTermMember 2019-06-30 0000764180 mo:ForeignCurrencyDenominatedDebtMember 2018-12-31 0000764180 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2019-01-01 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-06-30 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputPriceVolatilityMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-06-30 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputPriceVolatilityMember 2019-06-30 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-06-30 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputPriceVolatilityMember 2019-06-30 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputPriceVolatilityMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-06-30 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-03-08 0000764180 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0000764180 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member 2019-01-01 2019-06-30 0000764180 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member 2019-06-30 0000764180 us-gaap:NetInvestmentHedgingMember 2018-01-01 2018-06-30 0000764180 mo:ForeignCurrencyDenominatedDebtMember us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-06-30 0000764180 mo:ForeignCurrencyDenominatedDebtMember us-gaap:NetInvestmentHedgingMember 2018-04-01 2018-06-30 0000764180 mo:ForeignCurrencyDenominatedDebtMember us-gaap:NetInvestmentHedgingMember 2019-04-01 2019-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2018-04-01 2018-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2019-04-01 2019-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-06-30 0000764180 us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-06-30 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2018-01-01 2018-06-30 0000764180 us-gaap:NetInvestmentHedgingMember 2019-04-01 2019-06-30 0000764180 mo:ForeignCurrencyDenominatedDebtMember us-gaap:NetInvestmentHedgingMember 2018-01-01 2018-06-30 0000764180 us-gaap:NetInvestmentHedgingMember 2018-04-01 2018-06-30 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedTermMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedTermMember 2019-06-30 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedTermMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedTermMember 2019-06-30 0000764180 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000764180 srt:MaximumMember us-gaap:PensionPlansDefinedBenefitMember 2019-06-30 0000764180 srt:MaximumMember us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-06-30 0000764180 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000764180 us-gaap:PensionPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000764180 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000764180 us-gaap:PensionPlansDefinedBenefitMember 2018-04-01 2018-06-30 0000764180 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-04-01 2018-06-30 0000764180 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-01-01 2018-06-30 0000764180 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-06-30 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2019-06-30 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2019-01-01 2019-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-12-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2019-04-01 2019-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2019-03-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2019-04-01 2019-06-30 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2017-12-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-01-01 2018-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-30 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-01 2018-06-30 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-04-01 2018-06-30 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-03-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-04-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-04-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-01-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-01-01 2018-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-04-01 2019-06-30 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonParticipatingManufacturerArbitrationPanelDecisionMember us-gaap:OperatingIncomeLossMember mo:NpmAdjustmentToCostOfSalesMember mo:SmokeableProductsMember 2018-04-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonParticipatingManufacturerArbitrationPanelDecisionMember us-gaap:OperatingIncomeLossMember mo:NpmAdjustmentToCostOfSalesMember mo:SmokeableProductsMember 2018-01-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:OperatingSegmentsMember mo:TobaccoandHealthLitigationCasesMember us-gaap:OperatingIncomeLossMember mo:SmokeableProductsMember 2018-01-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:MaterialReconcilingItemsMember mo:TobaccoandHealthLitigationCasesMember mo:InterestAndOtherDebtExpenseNetMember 2018-04-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:MaterialReconcilingItemsMember mo:TobaccoandHealthLitigationCasesMember mo:InterestAndOtherDebtExpenseNetMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:OperatingSegmentsMember mo:TobaccoandHealthLitigationCasesMember us-gaap:OperatingIncomeLossMember mo:SmokeableProductsMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:OperatingSegmentsMember mo:TobaccoandHealthLitigationCasesMember us-gaap:OperatingIncomeLossMember mo:SmokeableProductsMember 2018-04-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:TobaccoandHealthLitigationCasesMember 2018-01-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:TobaccoandHealthLitigationCasesMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:OperatingSegmentsMember mo:TobaccoandHealthLitigationCasesMember us-gaap:OperatingIncomeLossMember mo:SmokeableProductsMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:MaterialReconcilingItemsMember mo:TobaccoandHealthLitigationCasesMember mo:InterestAndOtherDebtExpenseNetMember 2018-01-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:TobaccoandHealthLitigationCasesMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:MaterialReconcilingItemsMember mo:TobaccoandHealthLitigationCasesMember mo:InterestAndOtherDebtExpenseNetMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:TobaccoandHealthLitigationCasesMember 2018-04-01 2018-06-30 0000764180 mo:WineMember 2019-01-01 2019-06-30 0000764180 us-gaap:CorporateNonSegmentMember 2019-04-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:WineMember 2019-04-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:WineMember 2018-01-01 2018-06-30 0000764180 mo:WineMember 2018-04-01 2018-06-30 0000764180 us-gaap:CorporateNonSegmentMember 2018-04-01 2018-06-30 0000764180 mo:SmokelessProductsMember 2019-01-01 2019-06-30 0000764180 mo:SmokeableProductsMember 2018-01-01 2018-06-30 0000764180 mo:SmokelessProductsMember 2018-01-01 2018-06-30 0000764180 us-gaap:MaterialReconcilingItemsMember 2019-04-01 2019-06-30 0000764180 us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000764180 mo:SmokeableProductsMember 2018-04-01 2018-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:WineMember 2019-01-01 2019-06-30 0000764180 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-06-30 0000764180 us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000764180 us-gaap:OperatingSegmentsMember mo:WineMember 2018-04-01 2018-06-30 0000764180 us-gaap:MaterialReconcilingItemsMember 2018-01-01 2018-06-30 0000764180 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-06-30 0000764180 mo:SmokelessProductsMember 2019-04-01 2019-06-30 0000764180 mo:SmokeableProductsMember 2019-01-01 2019-06-30 0000764180 us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000764180 us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000764180 mo:SmokeableProductsMember 2019-04-01 2019-06-30 0000764180 mo:WineMember 2019-04-01 2019-06-30 0000764180 mo:WineMember 2018-01-01 2018-06-30 0000764180 mo:SmokelessProductsMember 2018-04-01 2018-06-30 0000764180 mo:USDenominatedNotesDueTwoThousandFortyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandTwentyThreeMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-06-30 0000764180 mo:USDDenominatedNotesMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandThirtyOneMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandTwentyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandandTwentyTwoMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:TermLoanAgreementJUULandCronosMember 2019-01-01 2019-03-31 0000764180 mo:USDenominatedNotesDueTwoThousandTwentyFourMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandThirtyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesMember us-gaap:SeniorNotesMember 2019-02-01 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandTwentyFiveMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandTwentySixMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000764180 mo:TermLoanAgreementJUULandCronosMember 2019-02-01 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandFiftyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000764180 us-gaap:SeniorNotesMember 2019-01-01 2019-06-30 0000764180 mo:TermLoanAgreementJUULandCronosMember 2018-12-31 0000764180 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000764180 mo:IndividualSmokingAndHealthCasesMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:LightsUltraLightsClassActionsMember 2018-07-23 0000764180 mo:IndividualSmokingAndHealthCasesMember 2018-07-23 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember 2017-07-24 0000764180 mo:HealthCareCostRecoveryActionsMember 2018-07-23 0000764180 mo:IndividualSmokingAndHealthCasesMember 2017-07-24 0000764180 mo:LightsUltraLightsClassActionsMember 2017-07-24 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:HealthCareCostRecoveryActionsMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:LightsUltraLightsClassActionsMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember 2018-07-23 0000764180 mo:HealthCareCostRecoveryActionsMember 2017-07-24 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WV us-gaap:PendingLitigationMember 2017-01-01 2017-12-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:FL us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:NY us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 us-gaap:LetterOfCreditMember 2019-06-30 0000764180 mo:IndividualSmokingAndHealthCasesMember stpr:MA us-gaap:PendingLitigationMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesReiderandBanksMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:LightsMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2015NPMAdjustmentsMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:IA 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016and2017NPMAdjustmentsMember us-gaap:SettledLitigationMember 2018-04-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WV us-gaap:PendingLitigationMember 2017-01-01 2017-12-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:AK us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:TX 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2018-04-01 2018-04-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenySmokingandHealthCaseGentileMember 2017-10-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016and2017NPMAdjustmentsMember us-gaap:SettledLitigationMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember 2000-07-31 0000764180 mo:PhilipMorrisUSAandAltriaGroupMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:CA us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:DE 1996-05-01 2019-06-30 0000764180 mo:EngleProgenyCasesMember 2004-10-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:DC 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:MN 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:RI us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2018-01-01 2018-12-31 0000764180 mo:CanadianTobaccoManufacturersMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:CA 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember country:CA us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:LightsMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:ETSSmokingandHealthCaseFlightAttendantsMember us-gaap:PendingLitigationMember 2018-03-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:FL 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:LA 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2019-04-01 2019-04-30 0000764180 mo:FederalGovernmentsLawsuitMember mo:ImplementationofCorrectiveCommunicationsMember 2014-01-01 2014-12-31 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WV us-gaap:PendingLitigationMember 2017-12-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember us-gaap:CostOfSalesMember us-gaap:PendingLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember us-gaap:SettledLitigationMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:NH us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2017NPMAdjustmentsMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:IL 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2014NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:WV us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesWeingartandHancockMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:HealthCareCostRecoveryActionsMember 1998-11-01 1998-11-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2004NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:TN us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:EngleProgenyCasesMember 2000-07-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:LA us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:HealthCareCostRecoveryActionsMember 2019-04-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:NV 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember 2018-01-01 2018-03-31 0000764180 mo:EngleProgenyCasesStateMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2006NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:PA 1996-05-01 2019-06-30 0000764180 mo:EngleProgenyCasesStateMember stpr:FL 2009-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:CA 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:TobaccoandHealthJudgmentMember 2004-10-01 2019-06-30 0000764180 mo:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:CA us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2017NPMAdjustmentsMember 2018-04-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:IndividualSmokingAndHealthCasesMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:CanadianTobaccoManufacturersMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:CA 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:MI 1996-05-01 2019-06-30 0000764180 mo:IndividualSmokingAndHealthCasesMember stpr:FL us-gaap:PendingLitigationMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:NY 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember us-gaap:PendingLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:CT us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WI 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember 2018-04-01 2018-06-30 0000764180 mo:NonEngleProgenySmokingandHealthCaseCaponeMember 2019-04-01 2019-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFederalMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20152017TransitionYearsMember us-gaap:SettledLitigationMember 2019-04-01 2019-06-30 0000764180 mo:HealthCareCostRecoveryActionsMember country:CA us-gaap:ThreatenedLitigationMember 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFederalMember 2015-01-01 2015-12-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2007NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:HealthCareCostRecoveryActionsMember 2018-01-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember us-gaap:SettledLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20032015NPMAdjustmentsMember us-gaap:SettledLitigationMember 2017-10-01 2017-10-31 0000764180 mo:FederalGovernmentsLawsuitMember 2006-08-01 2006-08-31 0000764180 mo:HealthCareCostRecoveryActionsMember 1998-11-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember mo:MarylandMissouriNewMexicoandPennsylvaniaMember us-gaap:PendingLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:PR 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:OH 1996-05-01 2019-06-30 0000764180 mo:NonEngleProgenySmokingandHealthCaseCaponeMember 2018-12-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:NJ 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:NJ us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:AR 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:KS 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsTransitionYears20042017Member stpr:NY us-gaap:SettledLitigationMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember us-gaap:AssetsMember us-gaap:PendingLitigationMember 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember 2006-07-01 2006-07-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:MD 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:MS us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016NPMAdjustmentsMemberMember 2017-07-01 2017-09-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2005NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016NPMAdjustmentsMemberMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2013NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:MA us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:PA us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2010NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:EngleProgenyCasesStateMember mo:AlachuaCountyFloridaMember 2009-06-01 2009-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2012NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2009NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016and2017NPMAdjustmentsMember us-gaap:SettledLitigationMember 2019-04-01 2019-04-30 0000764180 mo:USTLitigationMember stpr:CA 2016-07-01 2016-07-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2008NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:OtherDisputesUndertheStateSettlementAgreementsMember 2018-08-01 2018-08-31 0000764180 mo:PhilipMorrisUSAandAltriaGroupMember mo:HealthCareCostRecoveryActionsMember country:CA us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:HealthCareCostRecoveryActionsMember 2018-04-01 2018-06-30 0000764180 mo:EngleProgenyCasesStateMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPollariMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2018NPMAdjustmentsMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:OK 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2011NPMAdjustmentMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesStateMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:NonEngleProgenySmokingandHealthCaseGentileMember 2017-10-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:OR 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:SC 1996-05-01 2019-06-30 0000764180 mo:HealthCareCostRecoveryActionsMember 2019-01-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:OH us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAandAltriaGroupMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember mo:BritishColumbiaSaskatchewanMember us-gaap:SubsequentEventMember 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:MO us-gaap:SubsequentEventMember 1999-01-01 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPearsonDCohenCollarChaconMemberMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember 1996-05-01 2019-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2018-04-01 2018-06-30 0000764180 mo:EngleProgenyCasesStateMember mo:EscambiaCountyFloridaMember 2009-06-01 2009-06-30 0000764180 mo:ETSSmokingandHealthCaseFlightAttendantsMember us-gaap:PendingLitigationMember us-gaap:SubsequentEventMember 2019-07-26 2019-07-26 0000764180 mo:InterestExpenseRelatedToLitigationMember 2018-04-01 2018-06-30 0000764180 mo:TobaccoandHealthJudgmentMember mo:LitigationCasesResultsMember 2018-04-01 2018-06-30 0000764180 mo:InterestExpenseRelatedToLitigationMember 2019-01-01 2019-06-30 0000764180 mo:TobaccoandHealthJudgmentMember mo:LitigationCasesResultsMember 2019-01-01 2019-06-30 0000764180 mo:TobaccoandHealthJudgmentMember mo:LitigationCasesResultsMember 2019-04-01 2019-06-30 0000764180 mo:TobaccoandHealthJudgmentMember mo:LitigationCasesResultsMember 2018-01-01 2018-06-30 0000764180 mo:InterestExpenseRelatedToLitigationMember 2019-04-01 2019-06-30 0000764180 mo:InterestExpenseRelatedToLitigationMember 2018-01-01 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesWallaceMember us-gaap:SettledLitigationMember 2019-05-01 2019-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBoatrightMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSearcyMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesJordanMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesDanielsonMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesM.BrownMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBryantMember us-gaap:SettledLitigationMember us-gaap:SubsequentEventMember 2019-07-30 2019-07-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesGoreMember us-gaap:SettledLitigationMember 2018-09-01 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPerrottoMember us-gaap:SettledLitigationMember 2018-09-01 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesS.MartinMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSimonMember us-gaap:SettledLitigationMember 2018-10-01 2018-10-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPutneyMember us-gaap:SettledLitigationMember 2018-09-01 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSermonsMember us-gaap:SettledLitigationMember 2018-08-01 2018-08-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMcKeeverMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBoulterMember us-gaap:SettledLitigationMember 2019-01-01 2019-01-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPardueMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesL.MartinMember us-gaap:SettledLitigationMember 2019-04-01 2019-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesJ.BrownMember us-gaap:SettledLitigationMember 2019-04-01 2019-04-30 0000764180 mo:EngleProgenyCasesBergerMember us-gaap:PendingLitigationMember 2014-09-30 0000764180 mo:EngleProgenyCasesBergerMember us-gaap:PendingLitigationMember 2018-10-01 2018-12-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBergerMember us-gaap:PendingLitigationMember 2014-09-30 0000764180 mo:EngleProgenyCasesD.BrownMember us-gaap:PendingLitigationMember 2015-01-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesCooperMember us-gaap:PendingLitigationMember 2015-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFrogelMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesD.BrownMember us-gaap:PendingLitigationMember 2015-01-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesLandiMember us-gaap:PendingLitigationMember 2018-06-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMcCallMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMahfuzMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:EngleProgenyCasesZingaroMember us-gaap:PendingLitigationMember 2019-05-31 0000764180 mo:EngleProgenyCasesFrogelMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:EngleProgenyCasesFreemanMember us-gaap:PendingLitigationMember 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSommersMember us-gaap:PendingLitigationMember 2017-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesZingaroMember us-gaap:PendingLitigationMember 2019-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesChadwellMember us-gaap:PendingLitigationMember 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMcCoyMember us-gaap:PendingLitigationMember 2015-07-31 0000764180 mo:EngleProgenyCasesGlogerMember us-gaap:PendingLitigationMember 2018-02-28 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesHollimanMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFreemanMember us-gaap:PendingLitigationMember 2018-03-31 0000764180 mo:EngleProgenyCasesKerrivanMember us-gaap:PendingLitigationMember 2014-10-31 0000764180 mo:EngleProgenyCasesCooperMember us-gaap:PendingLitigationMember 2015-09-30 0000764180 mo:EngleProgenyCasesSommersMember us-gaap:PendingLitigationMember 2017-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesHarrisMember us-gaap:PendingLitigationMember 2014-07-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesNeffMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:EngleProgenyCasesNeffMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSantoroMember us-gaap:PendingLitigationMember 2017-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesR.DouglasMember us-gaap:PendingLitigationMember 2017-11-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesTheisMember us-gaap:PendingLitigationMember 2018-05-31 0000764180 mo:EngleProgenyCasesSantoroMember us-gaap:PendingLitigationMember 2017-03-31 0000764180 mo:EngleProgenyCasesMcCallMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesKaplanMember us-gaap:PendingLitigationMember 2018-07-31 0000764180 mo:EngleProgenyCasesKaplanMember us-gaap:PendingLitigationMember 2018-07-31 0000764180 mo:EngleProgenyCasesLandiMember us-gaap:PendingLitigationMember 2018-06-30 0000764180 mo:EngleProgenyCasesR.DouglasMember us-gaap:PendingLitigationMember 2017-11-30 0000764180 mo:EngleProgenyCasesChadwellMember us-gaap:PendingLitigationMember 2018-09-30 0000764180 mo:EngleProgenyCasesHollimanMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:EngleProgenyCasesMcCoyMember us-gaap:PendingLitigationMember 2015-07-31 0000764180 mo:EngleProgenyCasesTheisMember us-gaap:PendingLitigationMember 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesKerrivanMember us-gaap:PendingLitigationMember 2014-10-31 0000764180 mo:EngleProgenyCasesHarrisMember us-gaap:PendingLitigationMember 2014-07-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesGlogerMember us-gaap:PendingLitigationMember 2018-02-28 0000764180 mo:EngleProgenyCasesMahfuzMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-01-01 2019-06-30 0000764180 srt:ConsolidationEliminationsMember 2019-06-30 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-06-30 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0000764180 srt:ConsolidationEliminationsMember 2018-12-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0000764180 srt:ConsolidationEliminationsMember 2019-01-01 2019-06-30 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0000764180 srt:ConsolidationEliminationsMember 2018-01-01 2018-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0000764180 srt:ConsolidationEliminationsMember 2018-04-01 2018-06-30 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0000764180 srt:ConsolidationEliminationsMember 2019-04-01 2019-06-30 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2017-12-31 0000764180 srt:ConsolidationEliminationsMember 2017-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0000764180 srt:ConsolidationEliminationsMember 2018-06-30 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-06-30 mo:year iso4217:USD mo:director iso4217:CAD xbrli:shares iso4217:CAD mo:board_member xbrli:shares iso4217:USD xbrli:shares xbrli:pure mo:case mo:state mo:ruling mo:trial mo:manufacture mo:claim mo:court mo:plantiff iso4217:EUR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                    
Commission File Number 1-08940
Altria Group, Inc.
(Exact name of registrant as specified in its charter)
Virginia
 
 
13-3260245
 
(State or other jurisdiction of incorporation or organization)
 
 
(I.R.S. Employer
Identification No.)
 
 
 
 
6601 West Broad Street,
Richmond,
Virginia
23230
 
(Address of principal executive offices)
 
 
(Zip Code)
 
Registrant’s telephone number, including area code  ( 804 ) 274-2200  
  Former name, former address and former fiscal year, if changed since last report
Securities registered pursuant to Section 12(b) of the Act:
               Title of each class               
 
Trading Symbols
Name of each exchange on which registered
 
Common Stock, $0.33 1/3 par value
MO
New York Stock Exchange
1.000% Notes due 2023
MO23A
New York Stock Exchange
1.700% Notes due 2025
MO25
New York Stock Exchange
2.200% Notes due 2027
MO27
New York Stock Exchange
3.125% Notes due 2031
MO31
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes    þ      No   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes    þ     No   ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
þ
 
Accelerated filer
 
Non-accelerated filer
 
  
Smaller reporting company
  
 
 
 
 
Emerging growth company
  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes     No    þ
At July 22, 2019 , there were 1,868,095,889 shares outstanding of the registrant’s common stock, par value $0.33 1/3 per share.





ALTRIA GROUP, INC.
TABLE OF CONTENTS
 
 
 
 
 
 
 
  
 
  
Page No.
PART I -
  
FINANCIAL INFORMATION
  
 
 
 
 
 
Item 1.
  
Financial Statements (Unaudited)
  
 
 
 
 
 
 
  
  
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
  
  
 
 
 
 
Item 2.
  
  
 
 
 
 
 
Item 3.
  
  
 
 
 
 
Item 4.
  
  
 
 
 
 
PART II -
  
OTHER INFORMATION
  
 
 
 
 
 
Item 1.
  
  
 
 
 
 
Item 1A.
  
  
 
 
 
 
Item 2.
  
  
 
 
 
 
 
Item 6.
  
  
 
 
 
 
Signature
  
  


2


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)
 
 
 
June 30, 2019
 
December 31, 2018
Assets
 
 
 
 
Cash and cash equivalents
 
$
1,796

 
$
1,333

Receivables
 
163

 
142

Inventories:
 

 

Leaf tobacco
 
837

 
940

Other raw materials
 
194

 
186

Work in process
 
603

 
647

Finished product
 
601

 
558

 
 
2,235

 
2,331

Income taxes
 
79

 
167

Other current assets
 
210

 
326

Total current assets
 
4,483

 
4,299

Property, plant and equipment, at cost
 
4,933

 
4,950

Less accumulated depreciation
 
3,016

 
3,012

 
 
1,917

 
1,938

Goodwill
 
5,196

 
5,196

Other intangible assets, net
 
12,331

 
12,279

Investments in equity securities
 
32,094

 
30,496

Other assets
 
1,480

 
1,430

Total Assets
 
$
57,501

 
$
55,638

 
See notes to condensed consolidated financial statements.

3



Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share and per share data)
(Unaudited)
 
 
 
June 30, 2019
 
December 31, 2018
Liabilities
 
 
 
 
Short-term borrowings
 
$

 
$
12,704

Current portion of long-term debt
 
2,144

 
1,144

Accounts payable
 
224

 
399

Accrued liabilities:
 
 
 
 
Marketing
 
576

 
586

Settlement charges
 
2,019

 
3,454

Other
 
1,491

 
1,403

Dividends payable
 
1,498

 
1,503

Total current liabilities
 
7,952

 
21,193

Long-term debt
 
27,096

 
11,898

Deferred income taxes
 
5,378

 
5,172

Accrued pension costs
 
439

 
544

Accrued postretirement health care costs
 
1,768

 
1,749

Other liabilities
 
364

 
254

Total liabilities
 
42,997

 
40,810

Contingencies (Note 12)
 

 

Redeemable noncontrolling interest
 
38

 
39

Stockholders’ Equity
 
 
 
 
Common stock, par value $0.33 1/3 per share
(2,805,961,317 shares issued)
 
935

 
935

Additional paid-in capital
 
5,953

 
5,961

Earnings reinvested in the business
 
44,081

 
43,962

Accumulated other comprehensive losses
 
(2,646
)
 
(2,547
)
Cost of repurchased stock
(937,872,295 shares at June 30, 2019 and
931,903,722 shares at December 31, 2018)
 
(33,859
)
 
(33,524
)
Total stockholders’ equity attributable to Altria
 
14,464

 
14,787

Noncontrolling interests
 
2

 
2

Total stockholders’ equity
 
14,466

 
14,789

Total Liabilities and Stockholders’ Equity
 
$
57,501

 
$
55,638

See notes to condensed consolidated financial statements.


4



Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
(Unaudited)
 
 
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Net revenues
 
$
12,247

 
$
12,413

 
$
6,619

 
$
6,305

Cost of sales
 
3,452

 
3,472

 
1,874

 
1,738

Excise taxes on products
 
2,665

 
2,864

 
1,426

 
1,426

Gross profit
 
6,130

 
6,077

 
3,319

 
3,141

Marketing, administration and research costs
 
1,102

 
1,259

 
569

 
641

Asset impairment and exit costs
 
73

 
4

 
33

 
2

Operating income
 
4,955

 
4,814

 
2,717

 
2,498

Interest and other debt expense, net
 
696

 
344

 
312

 
178

Net periodic benefit income, excluding service cost
 
(16
)
 
(16
)
 
(15
)
 
(9
)
Earnings from equity investments
 
(533
)
 
(570
)
 
(447
)
 
(228
)
Loss on Cronos-related financial instruments
 
691

 

 
266

 

Loss on ABI/SABMiller business combination
 

 
33

 

 

Earnings before income taxes
 
4,117

 
5,023

 
2,601

 
2,557

Provision for income taxes
 
999

 
1,251

 
604

 
680

Net earnings
 
3,118

 
3,772

 
1,997

 
1,877

Net earnings attributable to noncontrolling interests
 
(2
)
 
(2
)
 
(1
)
 
(1
)
Net earnings attributable to Altria
 
$
3,116

 
$
3,770

 
$
1,996

 
$
1,876

Per share data:
 
 
 
 
 
 
 
 
Basic and diluted earnings per share attributable to Altria
 
$
1.66

 
$
1.99

 
$
1.07

 
$
0.99

See notes to condensed consolidated financial statements.


5



Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings
(in millions of dollars)
(Unaudited)

 
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Net earnings
 
$
3,118

 
$
3,772

 
$
1,997

 
$
1,877

Other comprehensive earnings (losses), net of deferred income taxes:
 
 
 
 
 
 
 
 
Currency translation adjustments and other
 
11

 
(2
)
 
11

 
(2
)
Benefit plans
 
58

 
87

 
29

 
42

ABI
 
(168
)
 
160

 
31

 
235

Other comprehensive earnings (losses), net of deferred
income taxes
 
(99
)
 
245

 
71

 
275

 
 
 
 
 
 
 
 
 
Comprehensive earnings
 
3,019

 
4,017

 
2,068

 
2,152

Comprehensive earnings attributable to noncontrolling interests
 
(2
)
 
(2
)
 
(1
)
 
(1
)
Comprehensive earnings attributable to Altria
 
$
3,017

 
$
4,015

 
$
2,067

 
$
2,151

See notes to condensed consolidated financial statements.

6


Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
for the Six Months Ended June 30, 2019 and 2018
(in millions of dollars, except per share data)
(Unaudited)
 

 
 
Attributable to Altria
 
 
 
 
 
 
Common
Stock
 
Additional
Paid-in
Capital
 
Earnings
Reinvested
in the
Business
 
Accumulated
Other
Comprehensive
Losses
 
Cost of
Repurchased
Stock
 
Non-controlling
Interests
 
Total
Stockholders’
Equity
Balances, December 31, 2018
 
$
935

 
$
5,961

 
$
43,962

 
$
(2,547
)
 
$
(33,524
)
 
$
2

 
$
14,789

Net earnings (1)
 

 

 
3,116

 

 

 

 
3,116

Other comprehensive earnings (losses), net of deferred income taxes
 

 

 

 
(99
)
 

 

 
(99
)
Stock award activity
 

 
(8
)
 

 

 
11

 

 
3

Cash dividends declared ($1.60 per share)
 

 

 
(2,997
)
 

 

 

 
(2,997
)
Repurchases of common stock
 

 

 

 

 
(346
)
 

 
(346
)
Balances, June 30, 2019
 
$
935

 
$
5,953

 
$
44,081

 
$
(2,646
)
 
$
(33,859
)
 
$
2

 
$
14,466


 
 
Attributable to Altria
 
 
 
 
 
 
Common
Stock
 
Additional
Paid-in
Capital
 
Earnings
Reinvested
in the
Business
 
Accumulated
Other
Comprehensive
Losses
 
Cost of
Repurchased
Stock
 
Non-controlling
Interests
 
Total
Stockholders’
Equity
Balances, December 31, 2017
 
$
935

 
$
5,952

 
$
42,251

 
$
(1,897
)
 
$
(31,864
)
 
$
3

 
$
15,380

Net earnings (1)
 

 

 
3,770

 

 

 

 
3,770

Other comprehensive earnings (losses), net of deferred income taxes
 

 

 

 
245

 

 

 
245

Stock award activity
 

 
(4
)
 

 

 
10

 

 
6

Cash dividends declared ($1.40 per share)
 

 

 
(2,652
)
 

 

 

 
(2,652
)
Repurchases of common stock
 

 

 

 

 
(950
)
 

 
(950
)
Other
 

 

 

 

 

 
(1
)
 
(1
)
Balances, June 30, 2018
 
$
935

 
$
5,948

 
$
43,369

 
$
(1,652
)
 
$
(32,804
)
 
$
2

 
$
15,798


(1) Amounts attributable to noncontrolling interests for the six months ended June 30, 2019 and 2018 exclude net earnings of $2 million due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars , which is reported in the mezzanine equity section on the condensed consolidated balance sheets.

See notes to condensed consolidated financial statements.



7


Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
for the Three Months Ended June 30, 2019 and 2018
(in millions of dollars, except per share data)
(Unaudited)
 

 
 
Attributable to Altria
 
 
 
 
 
 
Common
Stock
 
Additional
Paid-in
Capital
 
Earnings
Reinvested
in the
Business
 
Accumulated
Other
Comprehensive
Losses
 
Cost of
Repurchased
Stock
 
Non-controlling
Interests
 
Total
Stockholders’
Equity
Balances, March 31, 2019
 
$
935

 
$
5,943

 
$
43,582

 
$
(2,717
)
 
$
(33,664
)
 
$
2

 
$
14,081

Net earnings (1)
 

 

 
1,996

 

 

 

 
1,996

Other comprehensive earnings (losses), net of deferred income taxes
 

 

 

 
71

 

 

 
71

Stock award activity
 

 
10

 

 

 

 

 
10

Cash dividends declared ($0.80 per share)
 

 

 
(1,497
)
 

 

 

 
(1,497
)
Repurchases of common stock
 

 

 

 

 
(195
)
 

 
(195
)
Balances, June 30, 2019
 
$
935

 
$
5,953

 
$
44,081

 
$
(2,646
)
 
$
(33,859
)
 
$
2

 
$
14,466


 
 
Attributable to Altria
 
 
 
 
 
 
Common
Stock
 
Additional
Paid-in
Capital
 
Earnings
Reinvested
in the
Business
 
Accumulated
Other
Comprehensive
Losses
 
Cost of
Repurchased
Stock
 
Non-controlling
Interests
 
Total
Stockholders’
Equity
Balances, March 31, 2018
 
$
935

 
$
5,938

 
$
42,816

 
$
(1,927
)
 
$
(32,368
)
 
$
3

 
$
15,397

Net earnings (1)
 

 

 
1,876

 

 

 

 
1,876

Other comprehensive earnings (losses), net of deferred income taxes
 

 

 

 
275

 

 

 
275

Stock award activity
 

 
10

 

 

 
1

 

 
11

Cash dividends declared ($0.70 per share)
 

 

 
(1,323
)
 

 

 

 
(1,323
)
Repurchases of common stock
 

 

 

 

 
(437
)
 

 
(437
)
Other
 

 

 

 

 

 
(1
)
 
(1
)
Balances, June 30, 2018
 
$
935

 
$
5,948

 
$
43,369

 
$
(1,652
)
 
$
(32,804
)
 
$
2

 
$
15,798


(1) Amounts attributable to noncontrolling interests for the three months ended June 30, 2019 and 2018 exclude net earnings of $1 million due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars , which is reported in the mezzanine equity section on the condensed consolidated balance sheets.

See notes to condensed consolidated financial statements.



8



Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of dollars)
(Unaudited)

 
 
For the Six Months Ended June 30,
 
 
2019
 
2018
Cash Provided by (Used in) Operating Activities
 
 
 
 
Net earnings
 
$
3,118

 
$
3,772

Adjustments to reconcile net earnings to operating cash flows:
 
 
 
 
Depreciation and amortization
 
106

 
104

Deferred income tax provision (benefit)
 
(52
)
 
64

Earnings from equity investments
 
(533
)
 
(570
)
Dividends from ABI
 
221

 
477

Loss on ABI/SABMiller business combination
 

 
33

Loss on Cronos-related financial instruments
 
691

 

Asset impairment and exit costs, net of cash paid
 
(1
)
 
(16
)
Cash effects of changes:
 
 
 
 
Receivables
 
(21
)
 
(2
)
Inventories
 
96

 
105

Accounts payable
 
(175
)
 
(158
)
Income taxes
 
94

 
225

Accrued liabilities and other current assets
 
80

 
121

Accrued settlement charges
 
(1,435
)
 
(369
)
Pension plan contributions
 
(14
)
 
(11
)
Pension provisions and postretirement, net
 
(18
)
 
(2
)
Other, net
 
235

 
77

Net cash provided by (used in) operating activities
 
2,392

 
3,850

Cash Provided by (Used in) Investing Activities
 
 
 
 
Capital expenditures
 
(79
)
 
(72
)
Investment in Cronos
 
(1,832
)
 

Other, net
 
(65
)
 
(9
)
Net cash provided by (used in) investing activities
 
$
(1,976
)
 
$
(81
)

9


Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(in millions of dollars)
(Unaudited)
 
 
For the Six Months Ended June 30,
 
 
2019
 
2018
Cash Provided by (Used in) Financing Activities
 
 
 
 
Repayment of short-term borrowings
 
$
(12,800
)
 
$

Long-term debt issued
 
16,265

 

Repurchases of common stock
 
(346
)
 
(950
)
Dividends paid on common stock
 
(3,001
)
 
(2,585
)
Other
 
(131
)
 
(25
)
Net cash provided by (used in) financing activities
 
(13
)
 
(3,560
)
Cash, cash equivalents and restricted cash:
 
 
 
 
Increase (decrease)
 
403

 
209

Balance at beginning of period
 
1,433

 
1,314

Balance at end of period
 
$
1,836

 
$
1,523

 
 
 
 
 
The following table provides a reconciliation of cash, cash equivalents and restricted cash to the amounts reported on Altria’s condensed consolidated balance sheets:
 
 
At June 30,
2019
 
At December 31, 2018
Cash and cash equivalents
 
$
1,796

 
$
1,333

Restricted cash included in other current assets (1)
 
6

 
57

Restricted cash included in other assets (1)
 
34

 
43

Cash, cash equivalents and restricted cash
 
$
1,836

 
$
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 12 . Contingencies .

See notes to condensed consolidated financial statements.

10



Altria Group, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Note 1 . Background and Basis of Presentation:

Background

At June 30, 2019 , Altria Group, Inc.’s (“Altria”) wholly-owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco and is a wholly-owned subsidiary of PM USA; Sherman Group Holdings, LLC and its subsidiaries (“Nat Sherman”), which are engaged in the manufacture and sale of super premium cigarettes and the sale of premium cigars; UST LLC (“UST”), which through its wholly-owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (“USSTC”) and Ste. Michelle Wine Estates Ltd. (“Ste. Michelle”), is engaged in the manufacture and sale of smokeless tobacco products and wine; and Philip Morris Capital Corporation (“PMCC”), which maintains a portfolio of finance assets, substantially all of which are leveraged leases. In December 2018, Altria announced the decision to refocus its innovative product efforts, which included the discontinuation of production and distribution of all e-vapor products by Nu Mark LLC (“Nu Mark”). Prior to that time, Nu Mark was engaged in the manufacture and sale of innovative tobacco products. Other Altria wholly-owned subsidiaries included Altria Group Distribution Company, which provides sales and distribution services to certain Altria operating subsidiaries, and Altria Client Services LLC, which provides various support services in areas such as legal, regulatory, consumer engagement, finance, human resources and external affairs to Altria and its subsidiaries. Altria’s 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. At June 30, 2019 , Altria’s principal wholly-owned subsidiaries were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their equity interests.

At June 30, 2019 , Altria had a 10.1% economic and voting interest in Anheuser-Busch InBev SA/NV (“ABI”), which Altria accounts for under the equity method of accounting using a one-quarter lag. Altria receives cash dividends on its interest in ABI and will continue to do so as long as ABI pays dividends.

In December 2018, Altria, through a wholly-owned subsidiary, purchased shares of non-voting convertible common stock of JUUL Labs, Inc. (“JUUL”), representing a 35% economic interest for $12.8 billion . JUUL is engaged in the manufacture and sale of e-vapor products globally and is the U.S. leader in e-vapor. If and when antitrust clearance is obtained, Altria’s non-voting shares will automatically convert to voting shares (“Share Conversion”). At June 30, 2019 , Altria had a 35% economic interest in JUUL, which Altria accounts for as an investment in an equity security. Upon Share Conversion, Altria expects to account for its investment in JUUL under the equity method of accounting. Altria has agreed to non-competition obligations generally requiring that it participate in the e-vapor business only through JUUL as long as Altria is supplying JUUL services, which Altria is committed to doing until at least December 20, 2024.

In March 2019, Altria, through a subsidiary, completed its acquisition of a 45% economic and voting interest in Cronos Group Inc. (“Cronos”), a global cannabinoid company headquartered in Toronto, Canada. At June 30, 2019 , Altria had a 45% economic and voting interest in Cronos, which Altria accounts for under the equity method of accounting using a one-quarter lag.

For further discussion of Altria’s investments in equity securities, see Note 4 . Investments in Equity Securities .

Share Repurchases

In July 2015, Altria’s Board of Directors (the “Board of Directors”) authorized a $1.0 billion share repurchase program that it expanded to $3.0 billion in October 2016 and to $4.0 billion in July 2017 (as expanded, the “July 2015 share repurchase program”). In January 2018, Altria completed the July 2015 share repurchase program, under which it purchased a total of 58.7 million shares of its common stock at an average price of $68.15 per share.

Following the completion of the July 2015 share repurchase program, the Board of Directors authorized a new $1.0 billion share repurchase program in January 2018 that it expanded to $2.0 billion in May 2018 (as expanded, the “January 2018 share

11


repurchase program”). In June 2019, Altria completed the January 2018 share repurchase program, under which it purchased a total of 34.0 million shares of its common stock at an average price of $58.86 per share.

In July 2019, the Board of Directors authorized a new $1.0 billion share repurchase program. Share repurchases under this program depend upon marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors.

Altria’s share repurchase activity was as follows:
 
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in millions, except per share data)
Total number of shares repurchased
 
6.4

 
15.6

 
3.7

 
7.6

Aggregate cost of shares repurchased
 
$
346

 
$
950

 
$
195

 
$
437

Average price per share of shares repurchased
 
$
54.36

 
$
61.07

 
$
52.93

 
$
57.65



Basis of Presentation

The interim condensed consolidated financial statements of Altria are unaudited. It is the opinion of Altria’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected in the interim condensed consolidated financial statements. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year.

These statements should be read in conjunction with the consolidated financial statements and related notes, which appear in Altria’s Annual Report on Form 10-K for the year ended December 31, 2018 .

On January 1, 2019, Altria adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and all related ASU amendments (collectively “ASU No. 2016-02”), which requires entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Altria has elected to apply the guidance retrospectively at the beginning of the period of adoption. As a result, comparative periods prior to adoption will continue to be presented in accordance with prior lease guidance, including disclosures. The impact of the adoption was not material to Altria’s consolidated financial statements. As a result of the adoption, Altria and its subsidiaries, as lessees, recorded right-of-use assets and lease liabilities of $179 million at January 1, 2019 for its leases, which were all operating leases. There was no cumulative effect adjustment to the opening balance of earnings reinvested in the business. Right-of-use assets and lease liabilities on Altria’s condensed consolidated balance sheet at June 30, 2019 were not materially different than the amounts recorded upon adoption of ASU No. 2016-02.

Additionally, in accordance with ASU No. 2016-02, lessor accounting for leveraged leases that commenced before the January 1, 2019 adoption date of ASU No. 2016-02 is unchanged unless there is a change in the scope of, or the consideration for, such leases. As a result, adoption of ASU No. 2016-02 as it relates to PMCC’s leveraged leases had no impact on Altria’s financial statements at the adoption date. During the first six months of 2019, PMCC had no new leases nor any changes in the scope of or the consideration for its existing leveraged leases.

For a description of issued accounting guidance applicable to, but not yet adopted by, Altria, see Note 14 . New Accounting Guidance Not Yet Adopted .

Note 2 . Revenues from Contracts with Customers:

Altria disaggregates net revenues based on product type. For further discussion, see Note 9 . Segment Reporting .

Altria’s businesses offer cash discounts to customers for prompt payment and calculate cash discounts as a percentage of the list price based on historical experience and agreed-upon payment terms. Altria’s businesses record an allowance for cash discounts, which is included as a contra-asset against receivables on Altria’s condensed consolidated balance sheets. There was no allowance for cash discounts at June 30, 2019 and December 31, 2018 , and there were no differences between amounts recorded as an allowance for cash discounts and cash discounts subsequently given to customers.


12


Altria’s businesses that receive payments in advance of product shipment record such payments as deferred revenue. These payments are included in other accrued liabilities on Altria’s condensed consolidated balance sheets until control of such products is obtained by the customer. Deferred revenue was $364 million and $288 million at June 30, 2019 and December 31, 2018 , respectively. When cash is received in advance of product shipment, Altria’s businesses satisfy their performance obligations within three days of receiving payment. At June 30, 2019 and December 31, 2018 , there were no differences between amounts recorded as deferred revenue and amounts subsequently recognized as revenue.

Receivables, which primarily reflect sales of wine produced and/or distributed by Ste. Michelle, were $163 million and $142 million at June 30, 2019 and December 31, 2018 , respectively. At June 30, 2019 and December 31, 2018 , there were no expected differences between amounts recorded and subsequently received, and Altria’s businesses did not record an allowance for doubtful accounts against these receivables.

Altria’s businesses record an allowance for returned goods, which is included in other accrued liabilities on Altria’s condensed consolidated balance sheets. While all of Altria’s tobacco operating companies sell tobacco products with dates relative to freshness as printed on product packaging, due to the limited shelf life of USSTC’s smokeless tobacco products it is USSTC’s policy to accept authorized sales returns from its customers for products that have passed such dates. Altria’s businesses record estimated sales returns, which are based principally on historical volume and return rates, as a reduction to revenues. Actual sales returns will differ from estimated sales returns to the extent actual results differ from estimated assumptions. Altria’s businesses reflect differences between actual and estimated sales returns in the period in which the actual amounts become known. These differences, if any, have not had a material impact on Altria’s condensed consolidated financial statements. All returned goods are destroyed upon return and not included in inventory. Consequently, Altria’s businesses do not record an asset for their right to recover goods from customers upon return.

Sales incentives include variable payments related to goods sold by Altria’s businesses. Altria’s businesses include estimates of variable consideration as a reduction to revenues upon shipment of goods to customers. The sales incentives that require significant estimates and judgments are as follows:

Price promotion payments- Altria’s businesses make price promotion payments, substantially all of which are made to their retail partners, to incent the promotion of certain product offerings in select geographic areas.

Wholesale and retail participation payments- Altria’s businesses make payments to their wholesale and retail partners to incent merchandising and sharing of sales data in accordance with each business’s trade agreements.

These estimates primarily include estimated wholesale to retail sales volume and historical acceptance rates. Actual payments will differ from estimated payments to the extent actual results differ from estimated assumptions. Differences between actual and estimated payments are reflected in the period such information becomes available. These differences, if any, have not had a material impact on Altria’s condensed consolidated financial statements.


13


Note 3 . Asset Impairment, Exit and Implementation Costs:

Pre-tax asset impairment, exit and implementation costs consisted of the following:
 
For the Six Months Ended June 30, 2019
 
For the Six Months Ended June 30, 2018
 
Asset Impairment and Exit Costs
 
Implementation Costs (1)
 
Total
 
Asset Impairment and Exit Costs
 
Implementation Costs (2)
 
Total
 
(in millions)
Smokeable products
$
50

 
$
25

 
$
75

 
$
1

 
$
2

 
$
3

Smokeless products
8

 
3

 
11

 
3

 
3

 
6

All other
14

 
(7
)
 
7

 

 

 

General corporate
1

 

 
1

 

 

 

Total
73

 
21

 
94

 
4

 
5

 
9

Plus amounts included in net periodic benefit income, excluding
service cost
(3)
12

 

 
12

 

 

 

Total
$
85

 
$
21

 
$
106

 
$
4

 
$
5

 
$
9

(1) Included in cost of sales ( $2 million cost reversal) and marketing, administration and research costs ( $23 million ) in Altria’s condensed consolidated statement of earnings.
(2) Included in cost of sales in Altria’s condensed consolidated statements of earnings.
(3) Represents curtailment costs. See Note 6. Benefit Plans .
 
For the Three Months Ended June 30, 2019
 
For the Three Months Ended June 30, 2018
 
Asset Impairment and Exit Costs
 
Implementation Costs (1)
 
Total
 
Asset Impairment and Exit Costs
 
Implementation Costs (2)
 
Total
 
(in millions)
Smokeable products
$
14

 
$
17

 
$
31

 
$
1

 
$
1

 
$
2

Smokeless products

 
2

 
2

 
1

 
3

 
4

All other
19

 
(7
)
 
12

 

 

 

Total
$
33

 
$
12

 
$
45

 
$
2

 
$
4

 
$
6


(1) Included in cost of sales ( $2 million cost reversal) and marketing, administration and research costs ( $14 million ) in Altria’s condensed consolidated statement of earnings.
(2) Included in cost of sales in Altria’s condensed consolidated statements of earnings.

The 2019 pre-tax asset impairment, exit and implementation costs are related to the cost reduction program and the refocus of innovative product efforts discussed below.

The movement in the restructuring liabilities, substantially all of which are severance liabilities, was as follows:
 
For the Six Months Ended June 30, 2019
 
(in millions)
Balances at December 31, 2018
$
155

Charges
51

Cash spent
(86
)
Balances at June 30, 2019
$
120



Cost Reduction Program
In December 2018, Altria announced a cost reduction program that includes, among other things, reducing third-party spending and workforce reductions across the businesses. As a result of the cost reduction program, Altria expects to record total pre-tax restructuring charges of approximately $235 million , which now includes employee benefit-related curtailment and settlement

14


costs. Of this amount, Altria incurred pre-tax charges of $121 million in 2018 and expects to record the remainder in 2019. The total estimated charges, substantially all of which will result in cash expenditures, relate primarily to employee separation costs of approximately $205 million and other costs of approximately $30 million . For the six and three months ended June 30, 2019, total pre-tax asset impairment, exit and implementation costs were $94 million and $33 million , respectively. Total pre-tax charges incurred since the inception of this cost reduction program were $215 million at June 30, 2019. Cash payments related to this cost reduction program of $72 million and $50 million were made during the six and three months ended June 30, 2019 , respectively. There were no cash payments related to this program in 2018.

Refocus of Innovative Product Efforts
During the fourth quarter of 2018, Altria announced its decision to refocus its innovative product efforts, which included Nu Mark’s discontinuation of production and distribution of all e-vapor products . During the six and three months ended June 30, 2019, Altria incurred pre-tax charges of $12 million , consisting of asset impairment, exit and implementation costs. During 2018, Altria incurred pre-tax charges of $272 million , consisting of asset impairment and exit costs of $209 million related to the impairment of goodwill and other intangible assets and other charges of $63 million related to inventory write-offs and accelerated depreciation. The pre-tax charges related to the refocus of innovative product efforts have been substantially completed. The majority of the charges related to these efforts did not result in cash payments.

Note 4 . Investments in Equity Securities:

Altria’s investments consisted of the following:
 
 
Carrying Amount
 
 
June 30, 2019
 
December 31, 2018
 
 
(in millions)
ABI
 
$
17,669

 
$
17,696

JUUL
 
12,805

 
12,800

Cronos  (1)
 
1,620

 

Total
 
$
32,094

 
$
30,496

( 1) Includes investment in Acquired Common Shares ( $544 million ), the Cronos warrant ( $763 million ) and the Fixed-price Preemptive Rights ( $313 million ) as discussed further below.
Earnings from equity investments accounted for under the equity method of accounting consisted of the following:
 
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
ABI
 
$
388

 
$
570

 
$
302

 
$
228

Cronos  (1)
 
145

 

 
145

 

 
 
$
533

 
$
570

 
$
447

 
$
228

( 1) Represents Altria’s share of Cronos’s earnings for the period March 8, 2019 through March 31, 2019, substantially all of which relates to mark-to-market gains on Cronos’s derivative financial instruments associated with the issuance of additional shares.
Investment in ABI

At June 30, 2019 , Altria had a 10.1% economic and voting interest in ABI, consisting of 185 million restricted shares of ABI (the “Restricted Shares”) and 12 million ordinary shares of ABI. Altria accounts for its investment in ABI under the equity method of accounting because Altria has the ability to exercise significant influence over the operating and financial policies of ABI, including having active representation on ABI’s Board of Directors (“ABI Board”) and certain ABI Board committees. Through this representation, Altria participates in ABI policy making processes.

Altria reviews its investment in ABI for impairment by comparing the fair value of its investment to its carrying value. If the carrying value of Altria’s investment exceeds its fair value and the loss in value is other than temporary, the investment is

15


considered impaired and impairment is recognized in the period identified. The factors used to make this determination include the duration and magnitude of the fair value decline, ABI’s financial condition and near-term prospects, and Altria’s intent and ability to hold its investment in ABI until recovery.

The fair value of Altria’s equity investment in ABI is based on (i) unadjusted quoted prices in active markets for ABI’s ordinary shares and was classified in Level 1 of the fair value hierarchy and (ii) observable inputs other than Level 1 prices, such as quoted prices for similar assets for the Restricted Shares, and was classified in Level 2 of the fair value hierarchy. Altria may, in certain instances, pledge or otherwise grant a security interest in all or part of its Restricted Shares. In the event the pledgee or security interest holder forecloses on the Restricted Shares, the relevant Restricted Shares will be automatically converted, one-for-one, into ordinary shares. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share.

The fair value of Altria’s equity investment in ABI at June 30, 2019 and December 31, 2018 was $17.5 billion and $13.1 billion , respectively, compared with its carrying value of $17.7 billion for both periods. At June 30, 2019, the fair value of Altria’s equity investment in ABI was less than its carrying value by 1% , as compared to 26% at December 31, 2018. At July 23, 2019, the fair value of Altria’s equity investment in ABI exceeded its carrying value by 7% . Based on Altria’s evaluation of the factors identified above, Altria concluded that the decline in fair value of its investment in ABI below its carrying value at June 30, 2019 is temporary and, therefore, Altria has not recorded any impairment.

Investment in JUUL

In December 2018, Altria, through a wholly-owned subsidiary, purchased shares of JUUL’s non-voting Class C-1 Common Stock for an aggregate price of $12.8 billion , which will convert automatically to shares of voting Class C Common Stock upon antitrust clearance, and a security convertible into additional shares of Class C-1 Common Stock or Class C Common Stock, as applicable, for no additional payment upon settlement or exercise of certain JUUL convertible securities (the “JUUL Transaction”). At June 30, 2019, Altria owned 35% of the issued and outstanding capital stock of JUUL.

Upon Share Conversion, Altria will possess 35% of JUUL’s outstanding voting power, except to the extent that Altria’s percentage ownership has decreased, and have the right to designate one-third of the members of the JUUL Board of Directors, subject to proportionate downward adjustment if Altria’s percentage ownership falls below 30% .

Altria received a broad preemptive right to purchase JUUL shares, exercisable each quarter upon dilution, to maintain its ownership percentage and is subject to a standstill restriction under which it may not acquire additional JUUL shares above its 35% interest. Furthermore, Altria agreed not to sell or transfer any of its JUUL shares until December 20, 2024.

At June 30, 2019 , Altria accounted for its investment in JUUL as an investment in an equity security. Since the JUUL shares do not have a readily determinable fair value, Altria has elected to measure its investment in JUUL at its cost minus any impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. There have been no such upward or downward adjustments to the carrying value of Altria’s investment in JUUL resulting from observable price changes since the JUUL Transaction. Upon Share Conversion, Altria expects to account for its investment in JUUL under the equity method of accounting.

Investment in Cronos

In March 2019, Altria, through a subsidiary, completed its acquisition of:
149.8 million newly issued common shares of Cronos (“Acquired Common Shares”), representing a 45% economic and voting interest;
anti-dilution protections to purchase Cronos common shares, exercisable each quarter upon dilution, to maintain its ownership percentage. Certain of the anti-dilution protections provide Altria the ability to purchase additional Cronos common shares at a per share exercise price of CAD $16.25 upon the occurrence of specified events (“Fixed-price Preemptive Rights”). Based on Altria’s assumptions as of June 30, 2019, Altria estimates the Fixed-price Preemptive Rights will allow Altria to purchase up to an additional approximately 40 million common shares of Cronos; and
a warrant providing Altria the ability to purchase up to an additional 10% of common shares of Cronos (approximately 75 million common shares at June 30, 2019) at a per share exercise price of CAD $19.00 , which expires on March 8, 2023.

16


The total purchase price for the Acquired Common Shares, Fixed-price Preemptive Rights and warrant (collectively, “Investment in Cronos”) was CAD $2.4 billion (USD $1.8 billion ). Upon full exercise of the Fixed-price Preemptive Rights, to the extent such rights become available, and the warrant, Altria would own a maximum of 55% of the outstanding common shares of Cronos.

In accounting for the acquisition of these assets as of the date of closing, the Fixed-price Preemptive Rights and warrant were recorded at each of their fair values using Black-Scholes option-pricing models, based on the assumptions described in Note 5 . Financial Instruments . In addition, a deferred tax liability related to the Fixed-price Preemptive Rights and warrant was recorded. The residual of the purchase price was allocated to the Acquired Common Shares. Accordingly, the CAD $2.4 billion (USD $1.8 billion ) purchase price was recorded in USD as follows:
$1.2 billion to the warrant;
$0.5 billion to the Fixed-price Preemptive Rights;
$0.4 billion to the Acquired Common Shares; and
$0.3 billion to a deferred tax liability.

For a discussion of derivatives related to Altria’s Investment in Cronos, including Altria’s accounting for changes in the fair value of these derivatives, see Note 5 . Financial Instruments .

At June 30, 2019, Altria had a 45% economic and voting interest in Cronos, which Altria accounts for under the equity method of accounting. Altria reports its share of Cronos’s results using a one-quarter lag because Cronos’s results are not available in time for Altria to record them in the concurrent period.

Altria nominated four directors, including one director who is independent from Altria, who serve on Cronos’s seven -member Board of Directors.

Note 5 . Financial Instruments:

Altria enters into derivative financial instruments to mitigate the potential impact of certain market risks, including foreign currency exchange rate risk. Altria uses various types of derivative financial instruments, including forward contracts, options and swaps. Altria does not enter into or hold derivative financial instruments for trading or speculative purposes.

Altria’s investment in ABI, whose functional currency is the Euro, exposes Altria to foreign currency exchange risk on the carrying value of its investment. To manage this risk, Altria designates certain foreign exchange contracts, including cross-currency swap contracts and forward contracts (collectively “foreign currency contracts”), and Euro denominated notes (“foreign currency denominated debt”) as net investment hedges of Altria’s investment in ABI.

At June 30, 2019 and December 31, 2018 , Altria had foreign currency contracts with aggregate notional amounts of $1,391 million and $1,226 million , respectively. At June 30, 2019 , Altria had foreign currency denominated debt with an aggregate fair value and carrying value of $5,085 million and $4,807 million , respectively. At December 31, 2018 , Altria had no foreign currency denominated debt.

Altria’s estimates of the fair values of its foreign currency contracts are determined using valuation models with significant inputs that are readily available in public markets, or can be derived from observable market transactions, and therefore are classified in Level 2 of the fair value hierarchy. An adjustment for credit risk and nonperformance risk is included in the fair values of foreign currency contracts. See Note 10 . Debt for a discussion of the fair value hierarchy related to Altria’s debt.


17


Altria’s Fixed-price Preemptive Rights and warrant related to its investment in Cronos, which is further discussed in Note 4 . Investments in Equity Securities , are derivative financial instruments, which are required to be recorded at fair value. The fair values of the Fixed-price Preemptive Rights and warrant are estimated using Black-Scholes option-pricing models, adjusted for 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:
 
 
June 30, 2019
 
March 8, 2019
 
June 30, 2019
 
March 8, 2019
 
 
Fixed-price Preemptive Rights
 
Warrant
Expected life (1)
 
2.01 years
 
2.32 years
 
3.69 years
 
4 years
Expected volatility (2)
 
88.98%
 
93.02%
 
88.98%
 
93.02%
Risk-free interest rate (3)(4)
 
1.46%
 
1.61%
 
1.40%
 
1.67%
Expected dividend yield (5)
 
—%
 
—%
 
—%
 
—%
(1) Based on the weighted-average remaining expected life of the Fixed-price Preemptive Rights (with a range from approximately 2 years to 7 years at June 30, 2019 and March 8, 2019) and the March 8, 2023 expiration date of the warrant.
(2) Based on a blend of historical volatility levels of the underlying equity security and peer companies.
(3) Based on the implied yield currently available on Canadian Treasury zero coupon issues weighted for the remaining expected life of the Fixed-price Preemptive Rights.
(4) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the warrant.
(5) Based on Cronos’s expected dividend payments .

The following table provides a reconciliation of the beginning and ending balance of the Fixed-price Preemptive Rights and warrant, which are classified in Level 3 of the fair value hierarchy:
 
 
(in millions)
Balance at December 31, 2018
 
$

Initial investment in Fixed-price Preemptive Rights and warrant
 
1,736

Pre-tax earnings (losses) recognized in net earnings
 
(660
)
Balance at June 30, 2019
 
$
1,076



Altria elects to record the gross assets and liabilities of derivative financial instruments executed with the same counterparty on its condensed consolidated balance sheets. The fair values of Altria’s derivative financial instruments on a gross basis included on the condensed consolidated balance sheets were as follows:
 
Fair Value of Assets
 
Fair Value of Liabilities
 
Balance Sheet Classification
 
June 30, 2019
 
December 31, 2018
 
Balance Sheet Classification
June 30, 2019
 
December 31, 2018
Derivatives designated as hedging instruments:
(in millions)
Foreign currency contracts
Other current assets
 
$
45

 
$
37

 
Other accrued liabilities
$

 
$

Foreign currency contracts
Other assets
 

 
4

 
Other liabilities
16

 
4

Total
 
$
45

 
$
41

 
 
$
16

 
$
4

 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
Cronos warrant
Investments in equity securities
 
$
763

 
$

 
 
 
 
 
Fixed-price Preemptive Rights
Investments in equity securities
 
313

 

 
 
 
 
 
Total
 
 
$
1,076

 
$

 
 

 

 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
$
1,121

 
$
41

 
 
$
16

 
$
4




Altria records in its condensed consolidated statements of earnings any changes in the fair values of the Fixed-price Preemptive Rights and warrant as gains or losses on Cronos-related financial instruments in the periods in which the changes occur. For the

18


six months ended June 30, 2019 , Altria recognized pre-tax unrealized losses of $660 million , consisting of $212 million and $448 million , representing the changes in the fair values of the Fixed-price Preemptive Rights and warrant, respectively. For the three months ended June 30, 2019 , Altria recognized pre-tax unrealized losses of $266 million , consisting of $80 million and $186 million , representing the changes in the fair values of the Fixed-price Preemptive Rights and warrant, respectively.

In January and February 2019, Altria entered into derivative financial instruments in the form of forward contracts, which were settled on March 7, 2019, to hedge Altria’s exposure to CAD to USD foreign currency exchange rate movements, in relation to the CAD $2.4 billion purchase price for the Cronos transaction. The aggregate notional amounts of the forward contracts were USD $1.8 billion (CAD $2.4 billion ). The forward contracts did not qualify for hedge accounting; therefore, in the first quarter of 2019, pre-tax losses of USD $31 million representing changes in the fair values of the forward contracts were recorded in loss on Cronos-related financial instruments in Altria’s condensed consolidated statement of earnings.

Counterparties to Altria’s foreign currency contracts are domestic and international financial institutions. Altria is exposed to potential losses due to non-performance by these counterparties. Altria manages its credit risk by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure Altria has with each counterparty, and monitoring the financial condition of each counterparty. No amounts of collateral were received or posted related to derivative assets and liabilities at June 30, 2019 and December 31, 2018 .

Net Investment Hedging

The pre-tax effects of Altria’s net investment hedges on accumulated other comprehensive losses and the condensed consolidated statements of earnings were as follows:
 
 
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses
 
Gain (Loss) Recognized in Net Earnings (1)
 
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses
 
Gain (Loss) Recognized in Net Earnings (1)
 
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
Foreign currency contracts
 
$
13

 
$
39

 
$
16

 
$
16

 
$
(10
)
 
$
72

 
$
7

 
$
8

Foreign currency denominated debt
 
(32
)
 

 

 

 
(65
)
 

 

 

Total
 
$
(19
)
 
$
39

 
$
16

 
$
16

 
$
(75
)
 
$
72

 
$
7

 
$
8

(1) Related to amounts excluded from effectiveness testing.

The changes in the fair value of the foreign currency contracts and in the carrying value of the foreign currency denominated debt due to changes in the Euro to USD exchange rate were recognized in accumulated other comprehensive losses related to ABI. Gains on the foreign currency contracts arising from components excluded from effectiveness testing were recognized in interest and other debt expense, net in the condensed consolidated statements of earnings based on an amortization approach.


19


Note 6 . Benefit Plans:

Components of Net Periodic Benefit (Income) Cost

Net periodic benefit (income) cost consisted of the following:  
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
Pension
 
Postretirement
 
Pension
 
Postretirement
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Service cost
$
35

 
$
41

 
$
8

 
$
9

 
$
18

 
$
20

 
$
4

 
$
5

Interest cost
152

 
138

 
40

 
37

 
75

 
70

 
20

 
18

Expected return on plan assets
(288
)
 
(292
)
 
(7
)
 
(9
)
 
(143
)
 
(146
)
 
(3
)
 
(4
)
Amortization:
 
 
 
 
 
 
 
 

 
 
 
 
 
 
Net loss
80

 
112

 
6

 
17

 
38

 
55

 
3

 
8

Prior service cost (credit)
3

 
2

 
(14
)
 
(21
)
 
2

 
1

 
(7
)
 
(11
)
Curtailment
7

 

 
5

 

 

 

 

 

Net periodic benefit (income) cost
$
(11
)
 
$
1

 
$
38

 
$
33

 
$
(10
)
 
$

 
$
17

 
$
16



Curtailment costs shown in the table above were related to the cost reduction program discussed in Note 3. Asset Impairment, Exit and Implementation Costs .

Employer Contributions

Altria makes contributions to the pension plans to the extent that the contributions are tax deductible and pays benefits that relate to plans for salaried employees that cannot be funded under Internal Revenue Service (“IRS”) regulations. Altria made employer contributions of $14 million to its pension plans during the six months ended June 30, 2019 . Currently, Altria anticipates making additional employer contributions to its pension plans during the remainder of 2019 of up to approximately $45 million , based on current tax law.

Altria did not make any employer contributions to its postretirement plans during the six months ended June 30, 2019 . Currently, Altria anticipates making employer contributions to its postretirement plans of up to approximately $60 million in 2019 .

Estimates for current-year contributions to Altria’s pension and postretirement plans may be subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on assets, changes in interest rates or other considerations.

Note 7 . Earnings Per Share:

Basic and diluted earnings per share (“EPS”) were calculated using the following:
 
 
For the Six Months Ended June 30,
 
For the Three Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
Net earnings attributable to Altria
 
$
3,116

 
$
3,770

 
$
1,996

 
$
1,876

Less: Distributed and undistributed earnings attributable to share-based awards
 
(4
)
 
(5
)
 
(2
)
 
(3
)
Earnings for basic and diluted EPS
 
$
3,112

 
$