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Condensed Consolidating Financial Information | 9 Months Ended
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Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information: PM USA, which is a 100% owned subsidiary of Altria, has guaranteed Altria’s obligations under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper program (the “Guarantees”). Pursuant to the Guarantees, PM USA fully and unconditionally guarantees, as primary obligor, the payment and performance of Altria’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below. The Guarantees provide that PM USA guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of PM USA under the Guarantees is absolute and unconditional irrespective of: any lack of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other circumstance that might otherwise constitute a defense available to, or a discharge of, Altria or PM USA. The obligations of PM USA under the Guarantees are limited to the maximum amount as will not result in PM USA’s obligations under the Guarantees constituting a fraudulent transfer or conveyance, after giving effect to such maximum amount and all other contingent and fixed liabilities of PM USA that are relevant under Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Guarantees. For this purpose, “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors. PM USA will be unconditionally released and discharged from the Obligations upon the earliest to occur of:
▪ | the date, if any, on which PM USA consolidates with or merges into Altria or any successor;
▪ | the date, if any, on which Altria or any successor consolidates with or merges into PM USA;
▪ | the payment in full of the Obligations pertaining to such Guarantees; and
▪ | the rating of Altria’s long-term senior unsecured debt by Standard & Poor’s Ratings Services of A or higher.
At September 30, 2018, the respective principal 100% owned subsidiaries of Altria and PM USA 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. The following sets forth the condensed consolidating balance sheets as of September 30, 2018 and December 31, 2017, condensed consolidating statements of earnings and comprehensive earnings for the nine and three months ended September 30, 2018 and 2017, and condensed consolidating statements of cash flows for the nine months ended September 30, 2018 and 2017 for Altria, PM USA and, collectively, Altria’s other subsidiaries that are not guarantors of Altria’s debt instruments (the “Non-Guarantor Subsidiaries”). The financial information may not necessarily be indicative of results of operations or financial position had PM USA and the Non-Guarantor Subsidiaries operated as independent entities. Altria and PM USA account for investments in their subsidiaries under the equity method of accounting. Condensed Consolidating Balance Sheets September 30, 2018 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,346 |  |  | $ | — |  |  | $ | 47 |  |  | $ | — |  |  | $ | 2,393 |
Receivables |  | — |  |  | 14 |  |  | 173 |  |  | — |  |  | 187 |
Inventories: |  |  |  |  |  |  |  |  |  |
Leaf tobacco |  | — |  |  | 465 |  |  | 329 |  |  | — |  |  | 794 |
Other raw materials |  | — |  |  | 114 |  |  | 74 |  |  | — |  |  | 188 |
Work in process |  | — |  |  | 4 |  |  | 502 |  |  | — |  |  | 506 |
Finished product |  | — |  |  | 117 |  |  | 472 |  |  | — |  |  | 589 |
|  | — |  |  | 700 |  |  | 1,377 |  |  | — |  |  | 2,077 |
Due from Altria and subsidiaries |  | 7 |  |  | 4,085 |  |  | 1,233 |  |  | (5,325 | ) |  | — |
Income taxes |  | — |  |  | 223 |  |  | — |  |  | (139 | ) |  | 84 |
Other current assets |  | 56 |  |  | 334 |  |  | 34 |  |  | — |  |  | 424 |
Total current assets |  | 2,409 |  |  | 5,356 |  |  | 2,864 |  |  | (5,464 | ) |  | 5,165 |
Property, plant and equipment, at cost |  | — |  |  | 2,910 |  |  | 1,951 |  |  | — |  |  | 4,861 |
Less accumulated depreciation |  | — |  |  | 2,100 |  |  | 870 |  |  | — |  |  | 2,970 |
|  | — |  |  | 810 |  |  | 1,081 |  |  | — |  |  | 1,891 |
Goodwill |  | — |  |  | — |  |  | 5,307 |  |  | — |  |  | 5,307 |
Other intangible assets, net |  | — |  |  | 2 |  |  | 12,383 |  |  | — |  |  | 12,385 |
Investment in AB InBev |  | 17,825 |  |  | — |  |  | — |  |  | — |  |  | 17,825 |
Investment in consolidated subsidiaries |  | 14,081 |  |  | 2,861 |  |  | — |  |  | (16,942 | ) |  | — |
Finance assets, net |  | — |  |  | — |  |  | 848 |  |  | — |  |  | 848 |
Due from Altria and subsidiaries |  | 4,790 |  |  | — |  |  | — |  |  | (4,790 | ) |  | — |
Other assets |  | 159 |  |  | 717 |  |  | 144 |  |  | (488 | ) |  | 532 |
Total Assets |  | $ | 39,264 |  |  | $ | 9,746 |  |  | $ | 22,627 |  |  | $ | (27,684 | ) |  | $ | 43,953 |
Condensed Consolidating Balance Sheets (Continued) September 30, 2018 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Liabilities |  |  |  |  |  |  |  |  |  |
Current portion of long-term debt |  | $ | 2,007 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,007 |
Accounts payable |  | — |  |  | 78 |  |  | 211 |  |  | — |  |  | 289 |
Accrued liabilities: |  |  |  |  |  |  |  |  |  |
Marketing |  | — |  |  | 578 |  |  | 112 |  |  | — |  |  | 690 |
Employment costs |  | 14 |  |  | 11 |  |  | 122 |  |  | — |  |  | 147 |
Settlement charges |  | — |  |  | 3,222 |  |  | 8 |  |  | — |  |  | 3,230 |
Other |  | 277 |  |  | 335 |  |  | 302 |  |  | (139 | ) |  | 775 |
Dividends payable |  | 1,508 |  |  | — |  |  | — |  |  | — |  |  | 1,508 |
Due to Altria and subsidiaries |  | 4,814 |  |  | 426 |  |  | 85 |  |  | (5,325 | ) |  | — |
Total current liabilities |  | 8,620 |  |  | 4,650 |  |  | 840 |  |  | (5,464 | ) |  | 8,646 |
Long-term debt |  | 11,896 |  |  | — |  |  | — |  |  | — |  |  | 11,896 |
Deferred income taxes |  | 2,963 |  |  | — |  |  | 2,952 |  |  | (488 | ) |  | 5,427 |
Accrued pension costs |  | 197 |  |  | — |  |  | 63 |  |  | — |  |  | 260 |
Accrued postretirement health care costs |  | — |  |  | 1,213 |  |  | 770 |  |  | — |  |  | 1,983 |
Due to Altria and subsidiaries |  | — |  |  | — |  |  | 4,790 |  |  | (4,790 | ) |  | — |
Other liabilities |  | 94 |  |  | 30 |  |  | 83 |  |  | — |  |  | 207 |
Total liabilities |  | 23,770 |  |  | 5,893 |  |  | 9,498 |  |  | (10,742 | ) |  | 28,419 |
Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | — |  |  | — |  |  | 38 |  |  | — |  |  | 38 |
Stockholders’ Equity |  |  |  |  |  |  |  |  |  |
Common stock |  | 935 |  |  | — |  |  | 9 |  |  | (9 | ) |  | 935 |
Additional paid-in capital |  | 5,959 |  |  | 3,310 |  |  | 12,236 |  |  | (15,546 | ) |  | 5,959 |
Earnings reinvested in the business |  | 43,805 |  |  | 801 |  |  | 2,241 |  |  | (3,042 | ) |  | 43,805 |
Accumulated other comprehensive losses |  | (2,034 | ) |  | (258 | ) |  | (1,397 | ) |  | 1,655 |  |  | (2,034 | )
Cost of repurchased stock |  | (33,171 | ) |  | — |  |  | — |  |  | — |  |  | (33,171 | )
Total stockholders’ equity attributable to Altria |  | 15,494 |  |  | 3,853 |  |  | 13,089 |  |  | (16,942 | ) |  | 15,494 |
Noncontrolling interests |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Total stockholders’ equity |  | 15,494 |  |  | 3,853 |  |  | 13,091 |  |  | (16,942 | ) |  | 15,496 |
Total Liabilities and Stockholders’ Equity |  | $ | 39,264 |  |  | $ | 9,746 |  |  | $ | 22,627 |  |  | $ | (27,684 | ) |  | $ | 43,953 |
Condensed Consolidating Balance Sheets December 31, 2017 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,203 |  |  | $ | 1 |  |  | $ | 49 |  |  | $ | — |  |  | $ | 1,253 |
Receivables |  | 1 |  |  | 10 |  |  | 131 |  |  | — |  |  | 142 |
Inventories: |  |  |  |  |  |  |  |  |  |
Leaf tobacco |  | — |  |  | 579 |  |  | 362 |  |  | — |  |  | 941 |
Other raw materials |  | — |  |  | 111 |  |  | 59 |  |  | — |  |  | 170 |
Work in process |  | — |  |  | 5 |  |  | 555 |  |  | — |  |  | 560 |
Finished product |  | — |  |  | 128 |  |  | 426 |  |  | — |  |  | 554 |
|  | — |  |  | 823 |  |  | 1,402 |  |  | — |  |  | 2,225 |
Due from Altria and subsidiaries |  | 2 |  |  | 2,413 |  |  | 1,022 |  |  | (3,437 | ) |  | — |
Income taxes |  | — |  |  | 542 |  |  | 17 |  |  | (98 | ) |  | 461 |
Other current assets |  | 11 |  |  | 147 |  |  | 105 |  |  | — |  |  | 263 |
Total current assets |  | 1,217 |  |  | 3,936 |  |  | 2,726 |  |  | (3,535 | ) |  | 4,344 |
Property, plant and equipment, at cost |  | — |  |  | 2,930 |  |  | 1,949 |  |  | — |  |  | 4,879 |
Less accumulated depreciation |  | — |  |  | 2,086 |  |  | 879 |  |  | — |  |  | 2,965 |
|  | — |  |  | 844 |  |  | 1,070 |  |  | — |  |  | 1,914 |
Goodwill |  | — |  |  | — |  |  | 5,307 |  |  | — |  |  | 5,307 |
Other intangible assets, net |  | — |  |  | 2 |  |  | 12,398 |  |  | — |  |  | 12,400 |
Investment in AB InBev |  | 17,952 |  |  | — |  |  | — |  |  | — |  |  | 17,952 |
Investment in consolidated subsidiaries |  | 13,111 |  |  | 2,818 |  |  | — |  |  | (15,929 | ) |  | — |
Finance assets, net |  | — |  |  | — |  |  | 899 |  |  | — |  |  | 899 |
Due from Altria and subsidiaries |  | 4,790 |  |  | — |  |  | — |  |  | (4,790 | ) |  | — |
Other assets |  | 34 |  |  | 671 |  |  | 157 |  |  | (476 | ) |  | 386 |
Total Assets |  | $ | 37,104 |  |  | $ | 8,271 |  |  | $ | 22,557 |  |  | $ | (24,730 | ) |  | $ | 43,202 |
Condensed Consolidating Balance Sheets (Continued) December 31, 2017 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Liabilities |  |  |  |  |  |  |  |  |  |
Current portion of long-term debt |  | $ | 864 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 864 |
Accounts payable |  | 2 |  |  | 91 |  |  | 281 |  |  | — |  |  | 374 |
Accrued liabilities: |  |  |  |  |  |  |  |  |  |
Marketing |  | — |  |  | 578 |  |  | 117 |  |  | — |  |  | 695 |
Employment costs |  | 21 |  |  | 14 |  |  | 153 |  |  | — |  |  | 188 |
Settlement charges |  | — |  |  | 2,437 |  |  | 5 |  |  | — |  |  | 2,442 |
Other |  | 389 |  |  | 433 |  |  | 247 |  |  | (98 | ) |  | 971 |
Dividends payable |  | 1,258 |  |  | — |  |  | — |  |  | — |  |  | 1,258 |
Due to Altria and subsidiaries |  | 3,040 |  |  | 317 |  |  | 80 |  |  | (3,437 | ) |  | — |
Total current liabilities |  | 5,574 |  |  | 3,870 |  |  | 883 |  |  | (3,535 | ) |  | 6,792 |
Long-term debt |  | 13,030 |  |  | — |  |  | — |  |  | — |  |  | 13,030 |
Deferred income taxes |  | 2,809 |  |  | — |  |  | 2,914 |  |  | (476 | ) |  | 5,247 |
Accrued pension costs |  | 206 |  |  | — |  |  | 239 |  |  | — |  |  | 445 |
Accrued postretirement health care costs |  | — |  |  | 1,214 |  |  | 773 |  |  | — |  |  | 1,987 |
Due to Altria and subsidiaries |  | — |  |  | — |  |  | 4,790 |  |  | (4,790 | ) |  | — |
Other liabilities |  | 108 |  |  | 49 |  |  | 126 |  |  | — |  |  | 283 |
Total liabilities |  | 21,727 |  |  | 5,133 |  |  | 9,725 |  |  | (8,801 | ) |  | 27,784 |
Contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Redeemable noncontrolling interest |  | — |  |  | — |  |  | 38 |  |  | — |  |  | 38 |
Stockholders’ Equity |  |  |  |  |  |  |  |  |  |
Common stock |  | 935 |  |  | — |  |  | 9 |  |  | (9 | ) |  | 935 |
Additional paid-in capital |  | 5,952 |  |  | 3,310 |  |  | 12,045 |  |  | (15,355 | ) |  | 5,952 |
Earnings reinvested in the business |  | 42,251 |  |  | 96 |  |  | 2,243 |  |  | (2,339 | ) |  | 42,251 |
Accumulated other comprehensive losses |  | (1,897 | ) |  | (268 | ) |  | (1,506 | ) |  | 1,774 |  |  | (1,897 | )
Cost of repurchased stock |  | (31,864 | ) |  | — |  |  | — |  |  | — |  |  | (31,864 | )
Total stockholders’ equity attributable to Altria |  | 15,377 |  |  | 3,138 |  |  | 12,791 |  |  | (15,929 | ) |  | 15,377 |
Noncontrolling interests |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |
Total stockholders’ equity |  | 15,377 |  |  | 3,138 |  |  | 12,794 |  |  | (15,929 | ) |  | 15,380 |
Total Liabilities and Stockholders’ Equity |  | $ | 37,104 |  |  | $ | 8,271 |  |  | $ | 22,557 |  |  | $ | (24,730 | ) |  | $ | 43,202 |
Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Nine Months Ended September 30, 2018 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Net revenues |  | $ | — |  |  | $ | 16,339 |  |  | $ | 2,938 |  |  | $ | (27 | ) |  | $ | 19,250 |
Cost of sales |  | — |  |  | 4,666 |  |  | 870 |  |  | (27 | ) |  | 5,509 |
Excise taxes on products |  | — |  |  | 4,245 |  |  | 164 |  |  | — |  |  | 4,409 |
Gross profit |  | — |  |  | 7,428 |  |  | 1,904 |  |  | — |  |  | 9,332 |
Marketing, administration and research costs |  | 122 |  |  | 1,400 |  |  | 437 |  |  | — |  |  | 1,959 |
Asset impairment and exit costs |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Operating (expense) income |  | (122 | ) |  | 6,028 |  |  | 1,465 |  |  | — |  |  | 7,371 |
Interest and other debt expense (income), net |  | 378 |  |  | (37 | ) |  | 162 |  |  | — |  |  | 503 |
Net periodic benefit cost (income), excluding service cost |  | 3 |  |  | (33 | ) |  | (7 | ) |  | — |  |  | (37 | )
Earnings from equity investment in AB InBev |  | (759 | ) |  | — |  |  | — |  |  | — |  |  | (759 | )
Loss on AB InBev/SABMiller business combination |  | 33 |  |  | — |  |  | — |  |  | — |  |  | 33 |
Earnings before income taxes and equity earnings of subsidiaries |  | 223 |  |  | 6,098 |  |  | 1,310 |  |  | — |  |  | 7,631 |
Provision for income taxes |  | 67 |  |  | 1,537 |  |  | 311 |  |  | — |  |  | 1,915 |
Equity earnings of subsidiaries |  | 5,557 |  |  | 310 |  |  | — |  |  | (5,867 | ) |  | — |
Net earnings |  | 5,713 |  |  | 4,871 |  |  | 999 |  |  | (5,867 | ) |  | 5,716 |
Net earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (3 | ) |  | — |  |  | (3 | )
Net earnings attributable to Altria |  | $ | 5,713 |  |  | $ | 4,871 |  |  | $ | 996 |  |  | $ | (5,867 | ) |  | $ | 5,713 |
Net earnings |  | $ | 5,713 |  |  | $ | 4,871 |  |  | $ | 999 |  |  | $ | (5,867 | ) |  | $ | 5,716 |
Other comprehensive (losses) earnings, net of deferred income taxes |  | (137 | ) |  | 10 |  |  | 109 |  |  | (119 | ) |  | (137 | )
Comprehensive earnings |  | 5,576 |  |  | 4,881 |  |  | 1,108 |  |  | (5,986 | ) |  | 5,579 |
Comprehensive earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (3 | ) |  | — |  |  | (3 | )
Comprehensive earnings attributable to Altria |  | $ | 5,576 |  |  | $ | 4,881 |  |  | $ | 1,105 |  |  | $ | (5,986 | ) |  | $ | 5,576 |
Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Nine Months Ended September 30, 2017 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Net revenues |  | $ | — |  |  | $ | 16,748 |  |  | $ | 2,754 |  |  | $ | (27 | ) |  | $ | 19,475 |
Cost of sales |  | — |  |  | 4,888 |  |  | 858 |  |  | (27 | ) |  | 5,719 |
Excise taxes on products |  | — |  |  | 4,533 |  |  | 162 |  |  | — |  |  | 4,695 |
Gross profit |  | — |  |  | 7,327 |  |  | 1,734 |  |  | — |  |  | 9,061 |
Marketing, administration and research costs |  | 125 |  |  | 1,223 |  |  | 333 |  |  | — |  |  | 1,681 |
Asset impairment and exit costs |  | — |  |  | — |  |  | 24 |  |  | — |  |  | 24 |
Operating (expense) income |  | (125 | ) |  | 6,104 |  |  | 1,377 |  |  | — |  |  | 7,356 |
Interest and other debt expense (income), net |  | 375 |  |  | (12 | ) |  | 162 |  |  | — |  |  | 525 |
Net periodic benefit cost (income), excluding service cost |  | 1 |  |  | (28 | ) |  | (10 | ) |  | — |  |  | (37 | )
Earnings from equity investment in AB InBev |  | (332 | ) |  | — |  |  | — |  |  | — |  |  | (332 | )
Gain on AB InBev/SABMiller business combination |  | (445 | ) |  | — |  |  | — |  |  | — |  |  | (445 | )
Earnings before income taxes and equity earnings of subsidiaries |  | 276 |  |  | 6,144 |  |  | 1,225 |  |  | — |  |  | 7,645 |
(Benefit) provision for income taxes |  | (207 | ) |  | 2,173 |  |  | 420 |  |  | — |  |  | 2,386 |
Equity earnings of subsidiaries |  | 4,773 |  |  | 234 |  |  | — |  |  | (5,007 | ) |  | — |
Net earnings |  | 5,256 |  |  | 4,205 |  |  | 805 |  |  | (5,007 | ) |  | 5,259 |
Net earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (3 | ) |  | — |  |  | (3 | )
Net earnings attributable to Altria |  | $ | 5,256 |  |  | $ | 4,205 |  |  | $ | 802 |  |  | $ | (5,007 | ) |  | $ | 5,256 |
Net earnings |  | $ | 5,256 |  |  | $ | 4,205 |  |  | $ | 805 |  |  | $ | (5,007 | ) |  | $ | 5,259 |
Other comprehensive earnings, net of deferred income taxes |  | 106 |  |  | 10 |  |  | 83 |  |  | (93 | ) |  | 106 |
Comprehensive earnings |  | 5,362 |  |  | 4,215 |  |  | 888 |  |  | (5,100 | ) |  | 5,365 |
Comprehensive earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (3 | ) |  | — |  |  | (3 | )
Comprehensive earnings attributable to Altria |  | $ | 5,362 |  |  | $ | 4,215 |  |  | $ | 885 |  |  | $ | (5,100 | ) |  | $ | 5,362 |
Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended September 30, 2018 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Net revenues |  | $ | — |  |  | $ | 5,811 |  |  | $ | 1,035 |  |  | $ | (9 | ) |  | $ | 6,837 |
Cost of sales |  | — |  |  | 1,736 |  |  | 310 |  |  | (9 | ) |  | 2,037 |
Excise taxes on products |  | — |  |  | 1,491 |  |  | 54 |  |  | — |  |  | 1,545 |
Gross profit |  | — |  |  | 2,584 |  |  | 671 |  |  | — |  |  | 3,255 |
Marketing, administration and research costs |  | 45 |  |  | 491 |  |  | 164 |  |  | — |  |  | 700 |
Asset impairment and exit costs |  | — |  |  | — |  |  | (2 | ) |  | — |  |  | (2 | )
Operating (expense) income |  | (45 | ) |  | 2,093 |  |  | 509 |  |  | — |  |  | 2,557 |
Interest and other debt expense (income), net |  | 127 |  |  | (20 | ) |  | 52 |  |  | — |  |  | 159 |
Net periodic benefit cost (income), excluding service cost |  | 1 |  |  | (18 | ) |  | (4 | ) |  | — |  |  | (21 | )
Earnings from equity investment in AB InBev |  | (189 | ) |  | — |  |  | — |  |  | — |  |  | (189 | )
Earnings before income taxes and equity earnings of subsidiaries |  | 16 |  |  | 2,131 |  |  | 461 |  |  | — |  |  | 2,608 |
Provision for income taxes |  | 21 |  |  | 539 |  |  | 104 |  |  | — |  |  | 664 |
Equity earnings of subsidiaries |  | 1,948 |  |  | 119 |  |  | — |  |  | (2,067 | ) |  | — |
Net earnings |  | 1,943 |  |  | 1,711 |  |  | 357 |  |  | (2,067 | ) |  | 1,944 |
Net earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (1 | ) |  | — |  |  | (1 | )
Net earnings attributable to Altria |  | $ | 1,943 |  |  | $ | 1,711 |  |  | $ | 356 |  |  | $ | (2,067 | ) |  | $ | 1,943 |
Net earnings |  | $ | 1,943 |  |  | $ | 1,711 |  |  | $ | 357 |  |  | $ | (2,067 | ) |  | $ | 1,944 |
Other comprehensive (losses) earnings, net of deferred income taxes |  | (382 | ) |  | 2 |  |  | 36 |  |  | (38 | ) |  | (382 | )
Comprehensive earnings |  | 1,561 |  |  | 1,713 |  |  | 393 |  |  | (2,105 | ) |  | 1,562 |
Comprehensive earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (1 | ) |  | — |  |  | (1 | )
Comprehensive earnings attributable to Altria |  | $ | 1,561 |  |  | $ | 1,713 |  |  | $ | 392 |  |  | $ | (2,105 | ) |  | $ | 1,561 |
Condensed Consolidating Statements of Earnings and Comprehensive Earnings For the Three Months Ended September 30, 2017 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Net revenues |  | $ | — |  |  | $ | 5,764 |  |  | $ | 974 |  |  | $ | (9 | ) |  | $ | 6,729 |
Cost of sales |  | — |  |  | 1,668 |  |  | 293 |  |  | (9 | ) |  | 1,952 |
Excise taxes on products |  | — |  |  | 1,551 |  |  | 55 |  |  | — |  |  | 1,606 |
Gross profit |  | — |  |  | 2,545 |  |  | 626 |  |  | — |  |  | 3,171 |
Marketing, administration and research costs |  | 46 |  |  | 422 |  |  | 106 |  |  | — |  |  | 574 |
Asset impairment and exit costs |  | — |  |  | — |  |  | 8 |  |  | — |  |  | 8 |
Operating (expense) income |  | (46 | ) |  | 2,123 |  |  | 512 |  |  | — |  |  | 2,589 |
Interest and other debt expense (income), net |  | 122 |  |  | (6 | ) |  | 53 |  |  | — |  |  | 169 |
Net periodic benefit cost (income), excluding service cost |  | — |  |  | (14 | ) |  | (4 | ) |  | — |  |  | (18 | )
Earnings from equity investment in AB InBev |  | (169 | ) |  | — |  |  | — |  |  | — |  |  | (169 | )
Gain on AB InBev/SABMiller business combination |  | (37 | ) |  | — |  |  | — |  |  | — |  |  | (37 | )
Earnings before income taxes and equity earnings of subsidiaries |  | 38 |  |  | 2,143 |  |  | 463 |  |  | — |  |  | 2,644 |
(Benefit) provision for income taxes |  | (167 | ) |  | 776 |  |  | 168 |  |  | — |  |  | 777 |
Equity earnings of subsidiaries |  | 1,661 |  |  | 82 |  |  | — |  |  | (1,743 | ) |  | — |
Net earnings |  | 1,866 |  |  | 1,449 |  |  | 295 |  |  | (1,743 | ) |  | 1,867 |
Net earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (1 | ) |  | — |  |  | (1 | )
Net earnings attributable to Altria |  | $ | 1,866 |  |  | $ | 1,449 |  |  | $ | 294 |  |  | $ | (1,743 | ) |  | $ | 1,866 |
Net earnings |  | $ | 1,866 |  |  | $ | 1,449 |  |  | $ | 295 |  |  | $ | (1,743 | ) |  | $ | 1,867 |
Other comprehensive (losses) earnings, net of deferred income taxes |  | (108 | ) |  | 3 |  |  | 27 |  |  | (30 | ) |  | (108 | )
Comprehensive earnings |  | 1,758 |  |  | 1,452 |  |  | 322 |  |  | (1,773 | ) |  | 1,759 |
Comprehensive earnings attributable to noncontrolling interests |  | — |  |  | — |  |  | (1 | ) |  | — |  |  | (1 | )
Comprehensive earnings attributable to Altria |  | $ | 1,758 |  |  | $ | 1,452 |  |  | $ | 321 |  |  | $ | (1,773 | ) |  | $ | 1,758 |
Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2018 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Cash Provided by Operating Activities |  |  |  |  |  |  |  |  |  |
Net cash provided by operating activities |  | $ | 4,806 |  |  | $ | 5,801 |  |  | $ | 1,123 |  |  | $ | (5,164 | ) |  | $ | 6,566 |
Cash Provided by (Used in) Investing Activities |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (33 | ) |  | (99 | ) |  | — |  |  | (132 | )
Other |  | 8 |  |  | — |  |  | (13 | ) |  | — |  |  | (5 | )
Net cash provided by (used in) investing activities |  | 8 |  |  | (33 | ) |  | (112 | ) |  | — |  |  | (137 | )
Cash Provided by (Used in) Financing Activities |  |  |  |  |  |  |  |  |  |
Repurchases of common stock |  | (1,317 | ) |  | — |  |  | — |  |  | — |  |  | (1,317 | )
Dividends paid on common stock |  | (3,909 | ) |  | — |  |  | — |  |  | — |  |  | (3,909 | )
Changes in amounts due to/from Altria and subsidiaries |  | 1,576 |  |  | (1,565 | ) |  | (11 | ) |  | — |  |  | — |
Cash dividends paid to parent |  | — |  |  | (4,166 | ) |  | (998 | ) |  | 5,164 |  |  | — |
Other |  | (21 | ) |  | — |  |  | (4 | ) |  | — |  |  | (25 | )
Net cash used in financing activities |  | (3,671 | ) |  | (5,731 | ) |  | (1,013 | ) |  | 5,164 |  |  | (5,251 | )
Cash, cash equivalents and restricted cash (1): |  |  |  |  |  |  |  |  |  |
Increase (decrease) |  | 1,143 |  |  | 37 |  |  | (2 | ) |  | — |  |  | 1,178 |
Balance at beginning of period |  | 1,203 |  |  | 62 |  |  | 49 |  |  | — |  |  | 1,314 |
Balance at end of period |  | $ | 2,346 |  |  | $ | 99 |  |  | $ | 47 |  |  | $ | — |  |  | $ | 2,492 |
(1) Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 10. Contingencies. Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2017 (in millions of dollars)
|  | Altria |  |  | PM USA |  |  | Non- Guarantor Subsidiaries |  |  | Total Consolidating Adjustments |  |  | Consolidated |
Cash Provided by Operating Activities |  |  |  |  |  |  |  |  |  |
Net cash provided by operating activities |  | $ | 4,777 |  |  | $ | 3,664 |  |  | $ | 639 |  |  | $ | (4,936 | ) |  | $ | 4,144 |
Cash Provided by (Used in) Investing Activities |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | — |  |  | (21 | ) |  | (130 | ) |  | — |  |  | (151 | )
Proceeds from finance assets |  | — |  |  | — |  |  | 133 |  |  | — |  |  | 133 |
Other |  | (4 | ) |  | 2 |  |  | (182 | ) |  | — |  |  | (184 | )
Net cash used in investing activities |  | (4 | ) |  | (19 | ) |  | (179 | ) |  | — |  |  | (202 | )
Cash Provided by (Used in) Financing Activities |  |  |  |  |  |  |  |  |  |
Repurchases of common stock |  | (2,359 | ) |  | — |  |  | — |  |  | — |  |  | (2,359 | )
Dividends paid on common stock |  | (3,544 | ) |  | — |  |  | — |  |  | — |  |  | (3,544 | )
Changes in amounts due to/from Altria and subsidiaries |  | (813 | ) |  | 182 |  |  | 631 |  |  | — |  |  | — |
Cash dividends paid to parent |  | — |  |  | (3,849 | ) |  | (1,087 | ) |  | 4,936 |  |  | — |
Other |  | (40 | ) |  | — |  |  | (7 | ) |  | — |  |  | (47 | )
Net cash used in financing activities |  | (6,756 | ) |  | (3,667 | ) |  | (463 | ) |  | 4,936 |  |  | (5,950 | )
Cash, cash equivalents and restricted cash (1): |  |  |  |  |  |  |  |  |  |
Decrease |  | (1,983 | ) |  | (22 | ) |  | (3 | ) |  | — |  |  | (2,008 | )
Balance at beginning of period |  | 4,521 |  |  | 83 |  |  | 47 |  |  | — |  |  | 4,651 |
Balance at end of period |  | $ | 2,538 |  |  | $ | 61 |  |  | $ | 44 |  |  | $ | — |  |  | $ | 2,643 |
(1) Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 10. Contingencies.

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- Definition The entire disclosure for condensed financial statements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph d -Subparagraph 4 -Subsection 10 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph c -Subparagraph 4 -Subsection 10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 12 -Paragraph a -Subsection 04 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph e -Subparagraph 4 -Subsection 10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph f -Subparagraph 4 -Subsection 10 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
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