Toggle SGML Header (+)


Section 1: 10-Q (FORM 10-Q)

Document
false--12-31Q120190000764180falseLarge Accelerated Filerfalsemo12260000000600000010000005000000200000010000004000000800000020000001000000100000010000004000000100000020000001600000080000001000000200000010000001200000010000008000000700000020000003000000120000002100000000100000005000000001000000200000001600000090000003000000016000000050000001000000020000000100000000.70.80.33330.333328059613172805961317P5Y2.273.942470000001000000012000000200000010000006000000200000001000000010000001000000100000010000005000000100000010000004200000030000001100000080000002100000011000000500000020000004000000200000032500060000001000000179000000931903722934207054 0000764180 2019-01-01 2019-03-31 0000764180 2019-04-15 0000764180 2018-12-31 0000764180 2019-03-31 0000764180 2018-01-01 2018-03-31 0000764180 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000764180 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000764180 us-gaap:NoncontrollingInterestMember 2018-12-31 0000764180 us-gaap:TreasuryStockMember 2019-03-31 0000764180 us-gaap:CommonStockMember 2019-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000764180 us-gaap:NoncontrollingInterestMember 2019-03-31 0000764180 us-gaap:TreasuryStockMember 2018-12-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000764180 us-gaap:RetainedEarningsMember 2019-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000764180 us-gaap:CommonStockMember 2018-12-31 0000764180 us-gaap:RetainedEarningsMember 2018-12-31 0000764180 us-gaap:TreasuryStockMember 2017-12-31 0000764180 us-gaap:CommonStockMember 2017-12-31 0000764180 us-gaap:CommonStockMember 2018-03-31 0000764180 2017-12-31 0000764180 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000764180 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0000764180 us-gaap:RetainedEarningsMember 2017-12-31 0000764180 us-gaap:TreasuryStockMember 2018-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000764180 us-gaap:NoncontrollingInterestMember 2018-03-31 0000764180 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000764180 us-gaap:NoncontrollingInterestMember 2017-12-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000764180 2018-03-31 0000764180 us-gaap:RetainedEarningsMember 2018-03-31 0000764180 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000764180 mo:JUULMember 2018-12-01 2018-12-31 0000764180 mo:ABInBevMember 2019-03-31 0000764180 mo:JUULMember 2019-03-31 0000764180 mo:CronosGroupInc.Member 2019-03-08 0000764180 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000764180 mo:January2018ShareRepurchaseProgramMember 2018-05-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2016-10-31 0000764180 mo:CronosGroupInc.Member 2019-01-01 2019-03-31 0000764180 mo:CronosGroupInc.Member 2019-03-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2017-07-31 0000764180 mo:JUULMember 2018-12-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2015-07-01 2018-01-31 0000764180 mo:January2018ShareRepurchaseProgramMember 2019-03-31 0000764180 mo:January2018ShareRepurchaseProgramMember 2018-01-31 0000764180 mo:July2015ShareRepurchaseProgramMember 2015-07-31 0000764180 us-gaap:OperatingSegmentsMember mo:SmokeableProductsMember 2018-01-01 2018-03-31 0000764180 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-03-31 0000764180 us-gaap:OperatingSegmentsMember mo:SmokelessProductsMember 2019-01-01 2019-03-31 0000764180 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-03-31 0000764180 us-gaap:OperatingSegmentsMember mo:SmokelessProductsMember 2018-01-01 2018-03-31 0000764180 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-03-31 0000764180 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0000764180 us-gaap:OperatingSegmentsMember mo:SmokeableProductsMember 2019-01-01 2019-03-31 0000764180 mo:CostReductionProgramMember 2018-12-01 2018-12-31 0000764180 us-gaap:OtherRestructuringMember mo:CostReductionProgramMember 2019-03-31 0000764180 mo:CostReductionProgramMember 2019-01-01 2019-03-31 0000764180 mo:CostReductionProgramMember 2018-12-31 0000764180 us-gaap:EmployeeSeveranceMember mo:CostReductionProgramMember 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember 2019-03-31 0000764180 mo:ABInBevMember 2018-12-31 0000764180 mo:ABInBevMember 2018-01-01 2018-12-31 0000764180 mo:ABInBevMember 2019-01-01 2019-03-31 0000764180 mo:CronosGroupInc.Member us-gaap:CommonStockMember 2019-03-31 0000764180 mo:EquityContractWarrantMember 2019-03-31 0000764180 mo:ABInBevMember 2018-12-31 0000764180 mo:CronosGroupInc.Member 2018-12-31 0000764180 mo:JUULMember 2018-12-20 2018-12-20 0000764180 mo:CronosGroupInc.Member 2019-03-08 2019-03-08 0000764180 mo:CronosGroupInc.Member mo:EquityContractWarrantMember 2019-03-08 2019-03-08 0000764180 mo:CronosGroupInc.Member mo:EquityContractWarrantMember 2019-03-08 0000764180 mo:CronosGroupInc.Member mo:EquityContractPreemptiveRIghtsMember 2019-03-08 2019-03-08 0000764180 mo:CronosGroupInc.Member mo:EquityContractPreemptiveRIghtsMember 2019-03-31 0000764180 mo:CronosGroupInc.Member mo:EquityContractPreemptiveRIghtsMember 2019-03-08 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-03-31 0000764180 mo:ForeignCurrencyDenominatedDebtMember us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-03-31 0000764180 mo:ForeignCurrencyDenominatedDebtMember us-gaap:NetInvestmentHedgingMember 2018-01-01 2018-03-31 0000764180 us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-03-31 0000764180 us-gaap:NetInvestmentHedgingMember 2018-01-01 2018-03-31 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2018-01-01 2018-03-31 0000764180 us-gaap:NetInvestmentHedgingMember 2019-03-31 0000764180 us-gaap:OtherAssetsMember mo:EquityContractWarrantMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2019-03-31 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 0000764180 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 0000764180 mo:OtherAccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 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 2019-03-31 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 2019-03-31 0000764180 us-gaap:OtherAssetsMember mo:EquityContractPreemptiveRIghtsMember us-gaap:NetInvestmentHedgingMember us-gaap:NondesignatedMember 2019-03-31 0000764180 us-gaap:OtherLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-03-31 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 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0000764180 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member 2019-01-01 2019-03-31 0000764180 us-gaap:EquityContractMember us-gaap:FairValueInputsLevel3Member 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputPriceVolatilityMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-03-31 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputPriceVolatilityMember 2019-03-31 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputPriceVolatilityMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputPriceVolatilityMember 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-03-08 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2019-03-31 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2019-03-31 0000764180 mo:ForeignCurrencyDenominatedDebtMember 2019-03-31 0000764180 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2019-01-01 2019-03-31 0000764180 mo:ForeignCurrencyDenominatedDebtMember 2018-12-31 0000764180 srt:MinimumMember mo:EquityContractPreemptiveRIghtsMember mo:MeasurementInputWeightedAverageExpectedTermMember 2019-03-31 0000764180 mo:EquityContractPreemptiveRIghtsMember 2019-01-01 2019-03-31 0000764180 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2019-03-08 0000764180 srt:MaximumMember mo:EquityContractPreemptiveRIghtsMember mo:MeasurementInputWeightedAverageExpectedTermMember 2019-03-31 0000764180 mo:EquityContractWarrantMember 2019-01-01 2019-03-31 0000764180 us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2018-12-31 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedTermMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedTermMember 2019-03-08 0000764180 mo:EquityContractPreemptiveRIghtsMember us-gaap:MeasurementInputExpectedTermMember 2019-03-31 0000764180 mo:EquityContractWarrantMember us-gaap:MeasurementInputExpectedTermMember 2019-03-31 0000764180 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-03-31 0000764180 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-03-31 0000764180 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-01-01 2018-03-31 0000764180 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-03-31 0000764180 srt:MaximumMember us-gaap:PensionPlansDefinedBenefitMember 2019-03-31 0000764180 srt:MaximumMember us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-03-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2019-01-01 2019-03-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2019-03-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-12-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-03-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-01-01 2018-03-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-03-31 0000764180 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2018-03-31 0000764180 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2018-03-31 0000764180 mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember 2017-12-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-01-01 2018-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-01-01 2018-03-31 0000764180 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonParticipatingManufacturerArbitrationPanelDecisionMember us-gaap:OperatingIncomeLossMember mo:NpmAdjustmentToCostOfSalesMember mo:SmokeableProductsMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember us-gaap:MaterialReconcilingItemsMember mo:TobaccoandHealthLitigationCasesMember mo:InterestAndOtherDebtExpenseNetMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember us-gaap:OperatingSegmentsMember mo:TobaccoandHealthLitigationCasesMember us-gaap:OperatingIncomeLossMember mo:SmokeableProductsMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:TobaccoandHealthLitigationCasesMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember us-gaap:MaterialReconcilingItemsMember mo:TobaccoandHealthLitigationCasesMember mo:InterestAndOtherDebtExpenseNetMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:TobaccoandHealthLitigationCasesMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember us-gaap:OperatingSegmentsMember mo:TobaccoandHealthLitigationCasesMember us-gaap:OperatingIncomeLossMember mo:SmokeableProductsMember 2019-01-01 2019-03-31 0000764180 mo:WineMember 2018-01-01 2018-03-31 0000764180 mo:SmokelessProductsMember 2019-01-01 2019-03-31 0000764180 mo:SmokeableProductsMember 2018-01-01 2018-03-31 0000764180 us-gaap:MaterialReconcilingItemsMember 2018-01-01 2018-03-31 0000764180 mo:WineMember 2019-01-01 2019-03-31 0000764180 us-gaap:OperatingSegmentsMember mo:WineMember 2018-01-01 2018-03-31 0000764180 mo:SmokeableProductsMember 2019-01-01 2019-03-31 0000764180 mo:SmokelessProductsMember 2018-01-01 2018-03-31 0000764180 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-03-31 0000764180 us-gaap:AllOtherSegmentsMember 2018-01-01 2018-03-31 0000764180 us-gaap:OperatingSegmentsMember mo:WineMember 2019-01-01 2019-03-31 0000764180 us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0000764180 mo:USDenominatedNotesDueTwoThousandFortyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:TermLoanAgreementJUULandCronosMember 2019-02-01 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandTwentyFourMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandTwentyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDDenominatedNotesMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandTwentyFiveMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000764180 mo:EuroDenominatedNotesMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandandTwentyTwoMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandThirtyOneMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesDueTwoThousandTwentyThreeMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandTwentySixMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:TermLoanAgreementJUULandCronosMember 2019-01-01 2019-03-31 0000764180 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-03-31 0000764180 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000764180 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-03-31 0000764180 mo:EuroDenominatedNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 us-gaap:SeniorNotesMember 2019-01-01 2019-03-31 0000764180 mo:USDenominatedNotesDueTwoThousandThirtyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:EuroDenominatedNotesMember us-gaap:SeniorNotesMember 2019-02-01 2019-02-28 0000764180 mo:USDenominatedNotesDueTwoThousandFiftyNineMember us-gaap:SeniorNotesMember 2019-02-28 0000764180 mo:TermLoanAgreementJUULandCronosMember 2018-12-31 0000764180 2018-01-01 2018-12-31 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember 2018-04-23 0000764180 mo:IndividualSmokingAndHealthCasesMember 2018-04-23 0000764180 mo:LightsUltraLightsClassActionsMember 2018-04-23 0000764180 mo:IndividualSmokingAndHealthCasesMember 2017-04-27 0000764180 mo:HealthCareCostRecoveryActionsMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:HealthCareCostRecoveryActionsMember 2017-04-27 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:IndividualSmokingAndHealthCasesMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember 2017-04-27 0000764180 mo:HealthCareCostRecoveryActionsMember 2018-04-23 0000764180 mo:LightsUltraLightsClassActionsMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:LightsUltraLightsClassActionsMember 2017-04-27 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2018NPMAdjustmentsMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:KS 1996-05-01 2019-03-31 0000764180 mo:EngleProgenyCasesStateMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:IA 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016NPMAdjustmentsMemberMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:NJ 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAandAltriaGroupMember mo:HealthCareCostRecoveryActionsMember country:CA us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:DC 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2013NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:HealthCareCostRecoveryActionsMember country:CA us-gaap:ThreatenedLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:OtherDisputesUndertheStateSettlementAgreementsMember 2018-08-01 2018-08-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:OH 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenySmokingandHealthCaseGentileMember 2017-10-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:PA 1996-05-01 2019-03-31 0000764180 mo:EngleProgenyCasesMember 2004-10-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20032015NPMAdjustmentsMember us-gaap:SettledLitigationMember 2017-10-01 2017-10-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:NY 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:TN us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:CanadianTobaccoManufacturersMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:CA 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFederalMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember us-gaap:SettledLitigationMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenySmokingandHealthCaseCaponeMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2018-04-01 2018-04-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016and2017NPMAdjustmentsMember us-gaap:SettledLitigationMember 2018-04-01 2018-06-30 0000764180 mo:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2010NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:LA us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:USTLitigationMember stpr:CA 2006-07-01 2006-07-31 0000764180 us-gaap:LetterOfCreditMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:NH us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember us-gaap:PendingLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2005NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember us-gaap:SubsequentEventMember 2019-04-01 2019-04-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:WV us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesReiderandBanksMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2015NPMAdjustmentsMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember 2006-07-01 2006-07-31 0000764180 mo:ETSSmokingandHealthCaseFlightAttendantsMember us-gaap:PendingLitigationMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:PhilipMorrisUSAandAltriaGroupMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:CA us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WV us-gaap:PendingLitigationMember 2017-01-01 2017-12-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2012NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:AR 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesDCohenCollarChaconMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:NonEngleProgenySmokingandHealthCaseGentileMember 2017-10-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesWeingartandHancockMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:EngleProgenyCasesStateMember stpr:FL 2009-06-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2017NPMAdjustmentsMember 2018-04-01 2018-06-30 0000764180 mo:IndividualSmokingAndHealthCasesMember stpr:MA us-gaap:PendingLitigationMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016and2017NPMAdjustmentsMember us-gaap:SettledLitigationMember 2019-01-01 2019-03-31 0000764180 mo:HealthCareCostRecoveryActionsMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2008NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsTransitionYears20042017Member stpr:NY us-gaap:SettledLitigationMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:MS us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2018-01-01 2018-12-31 0000764180 mo:EngleProgenyCasesStateMember mo:AlachuaCountyFloridaMember 2009-06-01 2009-06-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:IL 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:MI 1996-05-01 2019-03-31 0000764180 mo:EngleProgenyCasesStateMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20042017Member us-gaap:SettledLitigationMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:TX 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:LightsMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:MN 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:RI us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:EngleProgenyCasesMember 2000-07-31 0000764180 mo:FederalGovernmentsLawsuitMember 2006-08-01 2006-08-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:OR 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:AK us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:OK 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:CA 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016and2017NPMAdjustmentsMember us-gaap:SettledLitigationMember us-gaap:SubsequentEventMember 2019-04-01 2019-04-25 0000764180 mo:ETSSmokingandHealthCaseFlightAttendantsMember us-gaap:PendingLitigationMember 2018-03-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions20152017TransitionYearsMember us-gaap:SettledLitigationMember 2019-01-01 2019-03-31 0000764180 mo:EngleProgenyCasesStateMember mo:EscambiaCountyFloridaMember 2009-06-01 2009-06-30 0000764180 mo:LightsMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2014NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:IndividualSmokingAndHealthCasesMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:HealthCareCostRecoveryActionsMember 1998-11-01 1998-11-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:MO us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:FL us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:IndividualSmokingAndHealthCasesMember stpr:FL us-gaap:PendingLitigationMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:NJ us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:OH us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WV us-gaap:PendingLitigationMember 2017-01-01 2017-12-31 0000764180 mo:TobaccoandHealthJudgmentMember 2004-10-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2004NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:HealthCareCostRecoveryActionsMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember us-gaap:CostOfSalesMember us-gaap:PendingLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:NV 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:SC 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:PA us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WV us-gaap:PendingLitigationMember 2017-12-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember mo:MarylandMissouriNewMexicoandPennsylvaniaMember us-gaap:PendingLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:FL 1996-05-01 2019-03-31 0000764180 mo:FederalGovernmentsLawsuitMember mo:ImplementationofCorrectiveCommunicationsMember 2014-01-01 2014-12-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember 2018-04-01 2018-06-30 0000764180 mo:CanadianTobaccoManufacturersMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:CA 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesStateMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:WI 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMember 2000-07-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPollariMember us-gaap:SubsequentEventMember 2019-04-22 2019-04-22 0000764180 mo:PhilipMorrisUSAandAltriaGroupMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember mo:BritishColumbiaSaskatchewanMember us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2006NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2016NPMAdjustmentsMemberMember 2017-07-01 2017-09-30 0000764180 mo:HealthCareCostRecoveryActionsMember 1998-11-30 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2017NPMAdjustmentsMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2007NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:CA us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFederalMember 2015-01-01 2015-12-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:DE 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2003NPMAdjustmentMember us-gaap:SettledLitigationMember 2013-09-01 2013-09-30 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:FL us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:NY us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:CT us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember us-gaap:AssetsMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2009NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActions2011NPMAdjustmentMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:MD 1996-05-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenyCasesMember stpr:MA us-gaap:SubsequentEventMember 1999-01-01 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:HealthCareCostRecoveryActionsMember country:CA us-gaap:SubsequentEventMember 2019-04-22 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember stpr:LA 1996-05-01 2019-03-31 0000764180 mo:NonEngleProgenySmokingandHealthCaseCaponeMember 2018-12-31 0000764180 mo:PhilipMorrisUSAMember mo:SmokingAndHealthClassActionsAndAggregatedClaimsLitigationMember country:PR 1996-05-01 2019-03-31 0000764180 mo:InterestExpenseRelatedToLitigationMember 2019-01-01 2019-03-31 0000764180 mo:TobaccoandHealthJudgmentMember mo:LitigationCasesResultsMember 2019-01-01 2019-03-31 0000764180 mo:InterestExpenseRelatedToLitigationMember 2018-01-01 2018-03-31 0000764180 mo:TobaccoandHealthJudgmentMember mo:LitigationCasesResultsMember 2018-01-01 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesKerrivanMember us-gaap:PendingLitigationMember 2014-10-31 0000764180 mo:EngleProgenyCasesD.BrownMember us-gaap:PendingLitigationMember 2015-01-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesChadwellMember us-gaap:PendingLitigationMember 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSommersMember us-gaap:PendingLitigationMember 2017-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBryantMember us-gaap:PendingLitigationMember 2017-12-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesCooperMember us-gaap:PendingLitigationMember 2015-09-30 0000764180 mo:EngleProgenyCasesNeffMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesKaplanMember us-gaap:PendingLitigationMember 2018-07-31 0000764180 mo:EngleProgenyCasesChadwellMember us-gaap:PendingLitigationMember 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMahfuzMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesHarrisMember us-gaap:PendingLitigationMember 2014-07-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesHollimanMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMcCoyMember us-gaap:PendingLitigationMember 2015-07-31 0000764180 mo:EngleProgenyCasesSommersMember us-gaap:PendingLitigationMember 2017-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesWallaceMember us-gaap:PendingLitigationMember 2017-10-31 0000764180 mo:EngleProgenyCasesMcCallMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesTheisMember us-gaap:PendingLitigationMember 2018-05-31 0000764180 mo:EngleProgenyCasesKaplanMember us-gaap:PendingLitigationMember 2018-07-31 0000764180 mo:EngleProgenyCasesBryantMember us-gaap:PendingLitigationMember 2017-12-31 0000764180 mo:EngleProgenyCasesKerrivanMember us-gaap:PendingLitigationMember 2014-10-31 0000764180 mo:EngleProgenyCasesTheisMember us-gaap:PendingLitigationMember 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFreemanMember us-gaap:PendingLitigationMember 2018-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesNeffMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesLandiMember us-gaap:PendingLitigationMember 2018-06-30 0000764180 mo:EngleProgenyCasesMahfuzMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesGlogerMember us-gaap:PendingLitigationMember 2018-02-28 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesD.BrownMember us-gaap:PendingLitigationMember 2015-01-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesMcCallMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesFrogelMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesR.DouglasMember us-gaap:PendingLitigationMember 2017-11-30 0000764180 mo:EngleProgenyCasesSantoroMember us-gaap:PendingLitigationMember 2017-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSantoroMember us-gaap:PendingLitigationMember 2017-03-31 0000764180 mo:EngleProgenyCasesHarrisMember us-gaap:PendingLitigationMember 2014-07-31 0000764180 mo:EngleProgenyCasesGlogerMember us-gaap:PendingLitigationMember 2018-02-28 0000764180 mo:EngleProgenyCasesMcCoyMember us-gaap:PendingLitigationMember 2015-07-31 0000764180 mo:EngleProgenyCasesWallaceMember us-gaap:PendingLitigationMember 2017-10-31 0000764180 mo:EngleProgenyCasesR.DouglasMember us-gaap:PendingLitigationMember 2017-11-30 0000764180 mo:EngleProgenyCasesFreemanMember us-gaap:PendingLitigationMember 2018-03-31 0000764180 mo:EngleProgenyCasesFrogelMember us-gaap:PendingLitigationMember 2019-03-31 0000764180 mo:EngleProgenyCasesCooperMember us-gaap:PendingLitigationMember 2015-09-30 0000764180 mo:EngleProgenyCasesHollimanMember us-gaap:PendingLitigationMember 2019-02-28 0000764180 mo:EngleProgenyCasesLandiMember us-gaap:PendingLitigationMember 2018-06-30 0000764180 mo:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-01-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:NonEngleProgenySmokingandHealthCaseCaponeMember us-gaap:SubsequentEventMember 2019-04-01 2019-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesS.MartinMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBarboseMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBoatrightMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBurkhartMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSearcyMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesGoreMember us-gaap:SettledLitigationMember 2018-09-01 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesAhrensMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesAllenMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesSermonsMember us-gaap:SettledLitigationMember 2018-08-01 2018-08-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesM.BrownMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesLedouxMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 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:EngleProgenyCasesMcKeeverMember 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:EngleProgenyCasesPerrottoMember us-gaap:SettledLitigationMember 2018-09-01 2018-09-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesDanielsonMember 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:EngleProgenyCasesPurdoMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesHowlesMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesJ.BrownMember us-gaap:SettledLitigationMember us-gaap:SubsequentEventMember 2019-04-01 2019-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesTognoliMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesL.MartinMember us-gaap:SettledLitigationMember us-gaap:SubsequentEventMember 2019-04-01 2019-04-30 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesGriffinMember us-gaap:SettledLitigationMember 2018-05-01 2018-05-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesPardueMember us-gaap:SettledLitigationMember 2019-03-01 2019-03-31 0000764180 mo:PhilipMorrisUSAMember mo:EngleProgenyCasesBergerMember us-gaap:PendingLitigationMember 2014-09-30 0000764180 mo:EngleProgenyCasesBergerMember us-gaap:PendingLitigationMember 2014-09-30 0000764180 mo:EngleProgenyCasesBergerMember us-gaap:PendingLitigationMember 2018-10-01 2018-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-03-31 0000764180 srt:ConsolidationEliminationsMember 2019-03-31 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-03-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-03-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-12-31 0000764180 srt:ConsolidationEliminationsMember 2018-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-03-31 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-03-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-03-31 0000764180 srt:ConsolidationEliminationsMember 2018-01-01 2018-03-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0000764180 srt:ConsolidationEliminationsMember 2019-01-01 2019-03-31 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0000764180 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-03-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2017-12-31 0000764180 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-03-31 0000764180 srt:ConsolidationEliminationsMember 2018-03-31 0000764180 srt:ConsolidationEliminationsMember 2017-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0000764180 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-03-31 mo:case mo:year mo:ruling iso4217:USD mo:director iso4217:CAD xbrli:shares mo:manufacture mo:claim iso4217:CAD mo:state mo:plantiff mo:board_member iso4217:EUR xbrli:shares iso4217:USD xbrli:shares xbrli:shares xbrli:pure iso4217:EUR mo:court mo:trial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 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
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 April 15, 2019, there were 1,870,919,863 shares outstanding of the registrant’s common stock, par value $0.33 1/3 per share.


Table of Contents    



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

Table of Contents    

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)
 
 
 
March 31, 2019
 
December 31, 2018
Assets
 
 
 
 
Cash and cash equivalents
 
$
3,352

 
$
1,333

Receivables
 
158

 
142

Inventories:
 

 

Leaf tobacco
 
930

 
940

Other raw materials
 
190

 
186

Work in process
 
651

 
647

Finished product
 
585

 
558

 
 
2,356

 
2,331

Income taxes
 
3

 
167

Other current assets
 
393

 
326

Total current assets
 
6,262

 
4,299

Property, plant and equipment, at cost
 
4,917

 
4,950

Less accumulated depreciation
 
2,995

 
3,012

 
 
1,922

 
1,938

Goodwill
 
5,196

 
5,196

Other intangible assets, net
 
12,327

 
12,279

Investments in equity securities
 
32,015

 
30,496

Other assets
 
1,511

 
1,430

Total Assets
 
$
59,233

 
$
55,638

 
See notes to condensed consolidated financial statements.

3

Table of Contents    


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

 
$
12,704

Current portion of long-term debt
 
2,144

 
1,144

Accounts payable
 
205

 
399

Accrued liabilities:
 
 
 
 
Marketing
 
490

 
586

Settlement charges
 
4,367

 
3,454

Other
 
1,412

 
1,403

Dividends payable
 
1,501

 
1,503

Total current liabilities
 
10,119

 
21,193

Long-term debt
 
27,024

 
11,898

Deferred income taxes
 
5,353

 
5,172

Accrued pension costs
 
497

 
544

Accrued postretirement health care costs
 
1,764

 
1,749

Other liabilities
 
357

 
254

Total liabilities
 
45,114

 
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
 
5,943

 
5,961

Earnings reinvested in the business
 
43,582

 
43,962

Accumulated other comprehensive losses
 
(2,717
)
 
(2,547
)
Cost of repurchased stock
(934,207,054 shares at March 31, 2019 and
931,903,722 shares at December 31, 2018)
 
(33,664
)
 
(33,524
)
Total stockholders’ equity attributable to Altria
 
14,079

 
14,787

Noncontrolling interests
 
2

 
2

Total stockholders’ equity
 
14,081

 
14,789

Total Liabilities and Stockholders’ Equity
 
$
59,233

 
$
55,638

See notes to condensed consolidated financial statements.


4

Table of Contents    


Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
(Unaudited)
 
 
 
For the Three Months Ended March 31,
 
 
2019
 
2018
Net revenues
 
$
5,628

 
$
6,108

Cost of sales
 
1,578

 
1,734

Excise taxes on products
 
1,239

 
1,438

Gross profit
 
2,811

 
2,936

Marketing, administration and research costs
 
533

 
618

Asset impairment and exit costs
 
40

 
2

Operating income
 
2,238

 
2,316

Interest and other debt expense, net
 
384

 
166

Net periodic benefit income, excluding service cost
 
(1
)
 
(7
)
Earnings from equity investment in AB InBev
 
(86
)
 
(342
)
Loss on Cronos-related financial instruments
 
425

 

Loss on AB InBev/SABMiller business combination
 

 
33

Earnings before income taxes
 
1,516

 
2,466

Provision for income taxes
 
395

 
571

Net earnings
 
1,121

 
1,895

Net earnings attributable to noncontrolling interests
 
(1
)
 
(1
)
Net earnings attributable to Altria
 
$
1,120

 
$
1,894

Per share data:
 
 
 
 
Basic and diluted earnings per share attributable to Altria
 
$
0.60

 
$
1.00

See notes to condensed consolidated financial statements.


5

Table of Contents    


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

 
 
For the Three Months Ended March 31,
 
 
2019
 
2018
Net earnings
 
$
1,121

 
$
1,895

Other comprehensive earnings (losses), net of deferred income taxes:
 
 
 
 
Benefit plans
 
29

 
45

AB InBev
 
(199
)
 
(75
)
Other comprehensive losses, net of deferred income taxes
 
(170
)
 
(30
)
 
 
 
 
 
Comprehensive earnings
 
951

 
1,865

Comprehensive earnings attributable to noncontrolling interests
 
(1
)
 
(1
)
Comprehensive earnings attributable to Altria
 
$
950

 
$
1,864

See notes to condensed consolidated financial statements.


6

Table of Contents    

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
for the Three Months Ended March 31, 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)
 

 

 
1,120

 

 

 

 
1,120

Other comprehensive losses, net of deferred income taxes
 

 

 

 
(170
)
 

 

 
(170
)
Stock award activity
 

 
(18
)
 

 

 
11

 

 
(7
)
Cash dividends declared ($0.80 per share)
 

 

 
(1,500
)
 

 

 

 
(1,500
)
Repurchases of common stock
 

 

 

 

 
(151
)
 

 
(151
)
Balances, March 31, 2019
 
$
935

 
$
5,943

 
$
43,582

 
$
(2,717
)
 
$
(33,664
)
 
$
2

 
$
14,081


 
 
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)
 

 

 
1,894

 

 

 

 
1,894

Other comprehensive losses, net of deferred income taxes
 

 

 

 
(30
)
 

 

 
(30
)
Stock award activity
 

 
(14
)
 

 

 
9

 

 
(5
)
Cash dividends declared ($0.70 per share)
 

 

 
(1,329
)
 

 

 

 
(1,329
)
Repurchases of common stock
 

 

 

 

 
(513
)
 

 
(513
)
Balances, March 31, 2018
 
$
935

 
$
5,938

 
$
42,816

 
$
(1,927
)
 
$
(32,368
)
 
$
3

 
$
15,397


(1) Amounts attributable to noncontrolling interests for the three months ended March 31, 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.



7

Table of Contents    


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

 
 
For the Three Months Ended March 31,
 
 
2019
 
2018
Cash Provided by (Used in) Operating Activities
 
 
 
 
Net earnings
 
$
1,121

 
$
1,895

Adjustments to reconcile net earnings to operating cash flows:
 
 
 
 
Depreciation and amortization
 
53

 
53

Deferred income tax (benefit) provision
 
(72
)
 
54

Earnings from equity investment in AB InBev
 
(86
)
 
(342
)
Loss on AB InBev/SABMiller business combination
 

 
33

Loss on Cronos-related financial instruments
 
425

 

Asset impairment and exit costs, net of cash paid
 
17

 
(7
)
Cash effects of changes:
 
 
 
 
Receivables
 
(16
)
 
9

Inventories
 
(25
)
 
(30
)
Accounts payable
 
(189
)
 
(164
)
Income taxes
 
471

 
521

Accrued liabilities and other current assets
 
(513
)
 
(267
)
Accrued settlement charges
 
913

 
1,018

Pension plan contributions
 
(3
)
 
(7
)
Pension provisions and postretirement, net
 
(8
)
 

Other, net
 
201

 
43

Net cash provided by operating activities
 
2,289

 
2,809

Cash Used in Investing Activities
 
 
 
 
Capital expenditures
 
(38
)
 
(34
)
Investment in Cronos
 
(1,831
)
 

Other, net
 
(81
)
 
(7
)
Net cash used in investing activities
 
$
(1,950
)
 
$
(41
)

8

Table of Contents    

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(in millions of dollars)
(Unaudited)
 
 
For the Three Months Ended March 31,
 
 
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
 
(151
)
 
(513
)
Dividends paid on common stock
 
(1,502
)
 
(1,257
)
Other
 
(129
)
 
(23
)
Net cash provided by (used in) financing activities
 
1,683

 
(1,793
)
Cash, cash equivalents and restricted cash:
 
 
 
 
Increase
 
2,022

 
975

Balance at beginning of period
 
1,433

 
1,314

Balance at end of period
 
$
3,455

 
$
2,289

 
 
 
 
 
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 March 31, 2019
 
At December 31, 2018
Cash and cash equivalents
 
$
3,352

 
$
1,333

Restricted cash included in other current assets (1)
 
68

 
57

Restricted cash included in other assets (1)
 
35

 
43

Cash, cash equivalents and restricted cash
 
$
3,455

 
$
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.

9

Table of Contents    


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

Note 1. Background and Basis of Presentation:

Background

At March 31, 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 March 31, 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 March 31, 2019, Altria had a 10.1% economic and voting interest of Anheuser-Busch InBev SA/NV (“AB InBev”), which Altria accounts for under the equity method of accounting using a one-quarter lag. Altria receives cash dividends on its interest in AB InBev and will continue to do so as long as AB InBev pays dividends.

In December 2018, Altria, through a wholly-owned subsidiary, purchased shares of non-voting convertible common stock of JUUL Labs, Inc. (“JUUL”), the U.S. leader in e-vapor, representing a 35% economic interest for $12.8 billion. JUUL is engaged in the manufacture and sale of e-vapor products globally. If and when antitrust clearance is obtained, Altria’s non-voting shares will automatically convert to voting shares (“Share Conversion”). At March 31, 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 for at least six years.

On March 8, 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 March 31, 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. As a result of the one-quarter lag, no earnings/losses from Altria’s equity investment in Cronos were recorded for the quarter ended March 31, 2019.

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

10

Table of Contents

repurchase program”). At March 31, 2019, Altria had $195 million remaining in the January 2018 share repurchase program. The timing of share repurchases under this program depends 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 Three Months Ended March 31,
 
 
2019
 
2018
 
 
(in millions, except per share data)
Total number of shares repurchased
 
2.7

 
8.0

Aggregate cost of shares repurchased
 
$
151

 
$
513

Average price per share of shares repurchased
 
$
56.34

 
$
64.33



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 March 31, 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 three 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 March 31, 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.

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 $233 million and $288 million at March 31, 2019 and December

11

Table of Contents

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 March 31, 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 $158 million and $142 million at March 31, 2019 and December 31, 2018, respectively. At March 31, 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.

Note 3. Asset Impairment, Exit and Implementation Costs:

Pre-tax asset impairment, exit and implementation costs consisted of the following:
 
For the Three Months Ended March 31, 2019
 
For the Three Months Ended March 31, 2018
 
Asset Impairment and Exit Costs
 
Implementation Costs (1)
 
Total
 
Asset Impairment and Exit Costs
 
Implementation Costs (2)
 
Total
 
(in millions)
Smokeable products
$
36

 
$
8

 
$
44

 
$

 
$
1

 
$
1

Smokeless products
8

 
1

 
9

 
2

 

 
2

All other
(5
)
 

 
(5
)
 

 

 

General corporate
1

 

 
1

 

 

 

Total
40

 
9

 
49

 
2

 
1

 
3

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

 

 
12

 

 

 

Total
$
52

 
$
9

 
$
61

 
$
2

 
$
1

 
$
3

(1) Included in marketing, administration and research costs 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.
 
 
 
 
 
 
 
 
 
 
 
 


12

Table of Contents

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

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

Charges
40

Cash spent
(35
)
Balances at March 31, 2019
$
160



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 $210 million. 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 $180 million and other costs of approximately $30 million. Total pre-tax charges incurred since the inception of this cost reduction program were $182 million. Cash payments related to this cost reduction program of $22 million were made during the three months ended March 31, 2019. There were no cash payments related to this program in 2018.


Note 4. Investments in Equity Securities:

Altria’s investments consisted of the following:
 
 
Carrying Amount
 
 
March 31, 2019
 
December 31, 2018
 
 
(in millions)
AB InBev
 
$
17,476

 
$
17,696

JUUL
 
12,800

 
12,800

Cronos (1)
 
1,739

 

Total
 
$
32,015

 
$
30,496

(1) Includes investment in Acquired Common Shares ($397 million), the Cronos warrant ($949 million) and the Fixed-price Preemptive Rights ($393 million) as discussed further below.
Investment in AB InBev

At March 31, 2019, Altria had a 10.1% economic and voting interest of AB InBev, consisting of 185 million restricted shares of AB InBev (the “Restricted Shares”) and 12 million ordinary shares of AB InBev. Altria accounts for its investment in AB InBev under the equity method of accounting because Altria has the ability to exercise significant influence over the operating and financial policies of AB InBev, including having active representation on AB InBev’s Board of Directors (“AB InBev Board”) and certain AB InBev Board committees. Through this representation, Altria participates in AB InBev policy making processes.

At December 31, 2018, AB InBev had derivative financial instruments used to hedge the share price related to 92.4 million of its share commitments. AB InBev’s share price in Euros at March 31, 2019 and December 31, 2018 was 74.76 and 57.70, respectively. Consistent with the one-quarter lag for reporting AB InBev’s results in Altria’s financial results, Altria will record its share of AB InBev’s first quarter 2019 mark-to-market gains associated with these derivative financial instruments in the second quarter of 2019.


13

Table of Contents

Altria reviews its investment in AB InBev 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 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, AB InBev’s financial condition and near-term prospects, and Altria’s intent and ability to hold its investment in AB InBev until recovery.

The fair value of Altria’s equity investment in AB InBev is based on: (i) unadjusted quoted prices in active markets for AB InBev’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 AB InBev at March 31, 2019 and December 31, 2018 was $16.6 billion and $13.1 billion, respectively, compared with its carrying value of $17.5 billion and $17.7 billion, respectively. At March 31, 2019, the fair value of Altria’s equity investment in AB InBev was less than its carrying value by 5%, as compared to 26% at December 31, 2018. At April 18, 2019, the fair value of Altria’s equity investment in AB InBev approximated its carrying value. Based on Altria’s evaluation of the factors identified above, Altria concluded that the decline in fair value of its investment in AB InBev below its carrying value at March 31, 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 March 31, 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 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 for six years from December 20, 2018.

At March 31, 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

On March 8, 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 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 March 31, 2019, Altria estimates the Fixed-price Preemptive Rights will allow Altria to purchase up to an additional approximately 40 million common shares of Cronos.

14

Table of Contents

a warrant providing Altria the ability to purchase up to an additional approximately 74 million common shares of Cronos at a per share exercise price of CAD $19.00, which expires on March 8, 2023.
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 March 31, 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. As a result of the one-quarter lag, no earnings/losses from Altria’s equity investment in Cronos were recorded for the quarter ended March 31, 2019.

Altria nominated four directors, including one director who is independent from Altria, who were elected to 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 AB InBev, 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 AB InBev.

At March 31, 2019 and December 31, 2018, Altria had foreign currency contracts with aggregate notional amounts of $1,226 million. At March 31, 2019, Altria had foreign currency denominated debt with an aggregate fair value and carrying value of $4,851 million and $4,740 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.


15

Table of Contents

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:
 
 
March 31, 2019
 
March 8, 2019
 
March 31, 2019
 
March 8, 2019
 
 
Fixed-price Preemptive Rights
 
Warrant
Expected life (1)
 
2.27 years
 
2.32 years
 
3.94 years
 
4 years
Expected volatility (2)
 
92.86%
 
93.02%
 
92.86%
 
93.02%
Risk-free interest rate (3)(4)
 
1.54%
 
1.61%
 
1.52%
 
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 1.75 years to 7 years) 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
 
$

Investment in Fixed-price Preemptive Rights and warrant
 
1,736

Pre-tax losses recognized in net earnings
 
(394
)
Balance at March 31, 2019
 
$
1,342



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
 
March 31, 2019
 
December 31, 2018
 
Balance Sheet Classification
March 31, 2019
 
December 31, 2018
Derivatives designated as hedging instruments: