XML 31 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Reporting | 3 Months Ended
--- | ---
Mar. 31, 2018
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting: The products of Altria Group, Inc.’s subsidiaries include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA and Nat Sherman, machine-made large cigars and pipe tobacco manufactured and sold by Middleton and premium cigars sold by Nat Sherman; smokeless tobacco products, consisting of moist smokeless tobacco and snus products 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. As discussed in Note 1. Background and Basis of Presentation, on January 1, 2018, Altria Group, Inc. adopted ASU 2017-07, which resulted in a change to prior-period operating income. As a result, certain immaterial prior-period operating companies income (loss) data has been reclassified to conform with the current period’s presentation. Altria Group, Inc.’s chief operating decision maker (the “CODM”) 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, net periodic benefit cost/income, excluding service cost, 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 the CODM. Segment data were as follows:
|  | For the Three Months Ended March 31,
|  | 2018 |  | 2017
|  | (in millions)
Net revenues: |  |  |  |
Smokeable products |  | $ | 5,414 |  |  | $ | 5,458 |
Smokeless products |  | 525 |  |  | 466 |
Wine |  | 142 |  |  | 140 |
All other |  | 27 |  |  | 19 |
Net revenues |  | $ | 6,108 |  |  | $ | 6,083 |
Earnings before income taxes: |  |  |  |
Operating companies income (loss): |  |  |  |
Smokeable products |  | $ | 2,038 |  |  | $ | 2,036 |
Smokeless products |  | 338 |  |  | 246 |
Wine |  | 17 |  |  | 21 |
All other |  | (26 | ) |  | (13 | )
Amortization of intangibles |  | (5 | ) |  | (5 | )
General corporate expenses |  | (46 | ) |  | (46 | )
Operating income |  | 2,316 |  |  | 2,239 |
Interest and other debt expense, net |  | (166 | ) |  | (179 | )
Net periodic benefit income, excluding service cost |  | 7 |  |  | 8 |
Earnings from equity investment in AB InBev |  | 342 |  |  | 23 |
Loss on AB InBev/SABMiller business combination |  | (33 | ) |  | — |
Earnings before income taxes |  | $ | 2,466 |  |  | $ | 2,091 |
The comparability of operating companies income for the reportable segments was affected by the following: Non-Participating Manufacturer (“NPM”) Adjustment Items - Pre-tax (income) expense for NPM adjustment items was recorded in Altria Group, Inc.’s condensed consolidated statements of earnings as follows:
|  | For the Three Months Ended March 31,
|  | 2018 |  | 2017
|  | (in millions)
Smokeable products segment |  | $ | (68 | ) |  | $ | (8 | )
Interest and other debt expense, net |  | — |  |  | 7 |
Total |  | $ | (68 | ) |  | $ | (1 | )
NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation - NPM Adjustment Disputes in Note 10. 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 - 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 Three Months Ended March 31,
|  | 2018 |  | 2017
|  | (in millions)
Smokeable products segment |  | $ | 24 |  |  | $ | 1 |
Interest and other debt expense, net |  | 4 |  |  | — |
Total |  | $ | 28 |  |  | $ | 1 |
During the first quarter of 2018, PM USA recorded pre-tax charges of $24 million in marketing, administration and research costs and $4 million in interest costs, substantially all of which related to three Engle progeny cases. For further discussion, see Note 10. Contingencies. Smokeless Products Recall - During the first quarter of 2017, USSTC voluntarily recalled certain smokeless tobacco products manufactured at its Franklin Park, Illinois facility due to a product tampering incident (the “Recall”). USSTC estimated that the Recall reduced smokeless products segment operating companies income by approximately $60 million in the first quarter of 2017. Asset Impairment, Exit and Implementation Costs - See Note 3. Asset Impairment, Exit and Implementation Costs for a breakdown of these costs by segment.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration