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Segment Reporting | 9 Months Ended
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Sep. 30, 2014
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting: The products of Altria Group, Inc.’s subsidiaries include smokeable products comprised of cigarettes manufactured and sold by PM USA and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; smokeless products manufactured and sold by USSTC and PM USA; and wine produced and/or distributed by Ste. Michelle. The products and services of these subsidiaries constitute Altria Group, Inc.’s reportable segments of smokeable products, smokeless products and wine. The financial services and the innovative tobacco products businesses are included in all other. Altria Group, Inc.’s chief operating decision maker reviews operating companies income to evaluate the performance of and allocate resources to the segments. Operating companies income for the segments excludes general corporate expenses and amortization of intangibles. Interest and other debt expense, net, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by Altria Group, Inc.’s chief operating decision maker. Segment data were as follows:
|  | For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
|  | (in millions)
Net revenues: |  |  |  |  |  |  |  |
Smokeable products |  | $ | 16,428 |  |  | $ | 16,448 |  |  | $ | 5,859 |  |  | $ | 5,802 |
Smokeless products |  | 1,345 |  |  | 1,333 |  |  | 466 |  |  | 485 |
Wine |  | 428 |  |  | 411 |  |  | 153 |  |  | 148 |
All other |  | 63 |  |  | 194 |  |  | 13 |  |  | 118 |
Net revenues |  | $ | 18,264 |  |  | $ | 18,386 |  |  | $ | 6,491 |  |  | $ | 6,553 |
Earnings before income taxes: |  |  |  |  |  |  |  |
Operating companies income (loss): |  |  |  |  |  |  |  |
Smokeable products |  | $ | 5,160 |  |  | $ | 5,471 |  |  | $ | 1,840 |  |  | $ | 1,825 |
Smokeless products |  | 804 |  |  | 769 |  |  | 280 |  |  | 277 |
Wine |  | 81 |  |  | 73 |  |  | 31 |  |  | 28 |
All other |  | (143 | ) |  | 185 |  |  | (89 | ) |  | 92 |
Amortization of intangibles |  | (15 | ) |  | (15 | ) |  | (5 | ) |  | (5 | )
General corporate expenses |  | (174 | ) |  | (173 | ) |  | (53 | ) |  | (60 | )
Changes to Mondelēz and PMI tax-related receivables/payables |  | (5 | ) |  | (25 | ) |  | (5 | ) |  | (25 | )
Operating income |  | 5,708 |  |  | 6,285 |  |  | 1,999 |  |  | 2,132 |
Interest and other debt expense, net |  | (596 | ) |  | (794 | ) |  | (213 | ) |  | (269 | )
Earnings from equity investment in SABMiller |  | 753 |  |  | 738 |  |  | 328 |  |  | 255 |
Earnings before income taxes |  | $ | 5,865 |  |  | $ | 6,229 |  |  | $ | 2,114 |  |  | $ | 2,118 |
The comparability of operating companies income for the reportable segments was affected by the following items: Non-Participating Manufacturer (“NPM”) Adjustment Items - For the nine and three months ended September 30, 2014 and 2013, pre-tax income for NPM adjustment items was recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows:
|  | For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
|  | (in millions)
Smokeable products segment |  | $ | 43 |  |  | $ | 664 |  |  | $ | — |  |  | $ | 145 |
Interest and other debt expense, net |  | 47 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 90 |  |  | $ | 664 |  |  | $ | — |  |  | $ | 145 |
These adjustments resulted from the settlement of, and determinations made in connection with, disputes with certain states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (the “MSA”) for the years 2003-2012 (such settlements and determinations are referred to collectively as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation - NPM Adjustment Disputes in Note 9. Contingencies). The amounts shown in the table above for the smokeable products segment were recorded by PM USA as reductions to cost of sales, which increased operating companies income in the smokeable products segment. Tobacco and Health Litigation Items - For the nine and three months ended September 30, 2014 and 2013, pre-tax charges related to certain tobacco and health litigation items were recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows:
|  | For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
|  | (in millions)
Smokeable products segment |  | $ | 22 |  |  | $ | 18 |  |  | $ | 3 |  |  | $ | 13 |
General corporate expenses |  | 15 |  |  | — |  |  | — |  |  | — |
Interest and other debt expense, net |  | 2 |  |  | 4 |  |  | 1 |  |  | 3 |
Total |  | $ | 39 |  |  | $ | 22 |  |  | $ | 4 |  |  | $ | 16 |
During the second quarter of 2014, Altria Group, Inc. and PM USA recorded an aggregate pre-tax charge of $31 million in marketing, administration and research costs for the estimated costs of implementing the corrective communications remedy in connection with the federal government’s lawsuit against Altria Group, Inc. and PM USA. For further discussion, see Health Care Cost Recovery Litigation - Federal Government’s Lawsuit in Note 9. Contingencies. Asset Impairment and Exit Costs - During the second quarter of 2014, PM USA sold its Cabarrus, North Carolina manufacturing facility for approximately $66 million in connection with the previously completed manufacturing optimization program associated with PM USA’s closure of the manufacturing facility in 2009. As a result, during the second quarter of 2014, PM USA recorded a pre-tax gain of $10 million.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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