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Segment Reporting | 9 Months Ended
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Sep. 30, 2016
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting: The products of Altria Group, Inc.’s subsidiaries include smokeable tobacco products, consisting of cigarettes manufactured and sold by PM USA and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; smokeless tobacco products, substantially all of which are manufactured and sold by USSTC; 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 is defined as operating income before 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,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
|  | (in millions)
Net revenues: |  |  |  |  |  |  |  |
Smokeable products |  | $ | 17,398 |  |  | $ | 17,235 |  |  | $ | 6,147 |  |  | $ | 6,040 |
Smokeless products |  | 1,530 |  |  | 1,393 |  |  | 528 |  |  | 482 |
Wine |  | 498 |  |  | 461 |  |  | 182 |  |  | 166 |
All other |  | 66 |  |  | 27 |  |  | 48 |  |  | 11 |
Net revenues |  | $ | 19,492 |  |  | $ | 19,116 |  |  | $ | 6,905 |  |  | $ | 6,699 |
Earnings before income taxes: |  |  |  |  |  |  |  |
Operating companies income (loss): |  |  |  |  |  |  |  |
Smokeable products |  | $ | 5,955 |  |  | $ | 5,831 |  |  | $ | 2,086 |  |  | $ | 2,121 |
Smokeless products |  | 930 |  |  | 830 |  |  | 312 |  |  | 286 |
Wine |  | 100 |  |  | 97 |  |  | 38 |  |  | 35 |
All other |  | (46 | ) |  | (139 | ) |  | 8 |  |  | (35 | )
Amortization of intangibles |  | (15 | ) |  | (16 | ) |  | (5 | ) |  | (6 | )
General corporate expenses |  | (150 | ) |  | (166 | ) |  | (57 | ) |  | (53 | )
Reduction of PMI tax-related receivable |  | — |  |  | (41 | ) |  | — |  |  | (41 | )
Corporate asset impairment and exit costs |  | (5 | ) |  | — |  |  | — |  |  | — |
Operating income |  | 6,769 |  |  | 6,396 |  |  | 2,382 |  |  | 2,307 |
Interest and other debt expense, net |  | (571 | ) |  | (609 | ) |  | (179 | ) |  | (205 | )
Loss on early extinguishment of debt |  | (823 | ) |  | (228 | ) |  | (823 | ) |  | — |
Earnings from equity investment in SABMiller |  | 564 |  |  | 546 |  |  | 299 |  |  | 187 |
Gain on derivative financial instruments |  | 205 |  |  | — |  |  | 48 |  |  | — |
Earnings before income taxes |  | $ | 6,144 |  |  | $ | 6,105 |  |  | $ | 1,727 |  |  | $ | 2,289 |
The comparability of operating companies income for the reportable segments was affected by the following: Non-Participating Manufacturer (“NPM”) Adjustment Items - Pre-tax expense (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,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
|  | (in millions)
Smokeable products segment |  | $ | 12 |  |  | $ | (126 | ) |  | $ | — |  |  | $ | (126 | )
Interest and other debt expense, net |  | 6 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 18 |  |  | $ | (126 | ) |  | $ | — |  |  | $ | (126 | )
NPM adjustment items result 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 (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 11. Contingencies). The amounts shown in the table above for the smokeable products segment were recorded by PM USA as increases (reductions) to cost of sales, which decreased (increased) operating companies income in the smokeable products segment. Tobacco and Health Litigation Items - 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,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
|  | (in millions)
Smokeable products segment |  | $ | 72 |  |  | $ | 102 |  |  | $ | 45 |  |  | $ | 54 |
Interest and other debt expense, net |  | 16 |  |  | 13 |  |  | — |  |  | 13 |
Total |  | $ | 88 |  |  | $ | 115 |  |  | $ | 45 |  |  | $ | 67 |
During the third quarter of 2016, PM USA recorded a pre-tax charge related to the Miner case of $45 million in marketing, administration and research costs. During the first quarter of 2016, PM USA recorded pre-tax charges, primarily related to the Aspinall case, of $26 million in marketing, administration and research costs and $12 million in interest costs. For further discussion, see “Lights/Ultra Lights” Cases - State Trial Court Class Certifications in Note 11. Contingencies. During the third quarter of 2015, PM USA recorded pre-tax charges of $54 million in marketing, administration and research costs related to tobacco and health judgments in six state Engle progeny lawsuits, as well as $13 million in interest costs related to those cases. During the first quarter of 2015, PM USA and certain other cigarette manufacturers reached an agreement to resolve approximately 415 pending federal Engle progeny cases. As a result of the agreement, during the first quarter of 2015, PM USA recorded a pre-tax provision of approximately $43 million in marketing, administration and research costs. For further discussion, see Smoking and Health Litigation in Note 11. Contingencies. Asset Impairment, Exit and Implementation Costs - See Note 2. Asset Impairment, Exit and Implementation Costs for a breakdown of these costs by segment.

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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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 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=68060357&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 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
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