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Asset Impairment, Exit and Implementation Costs | 6 Months Ended
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Jun. 30, 2019
Restructuring and Related Activities [Abstract] |
Asset Impairment, Exit and Implementation Costs | Asset Impairment, Exit and Implementation Costs: Pre-tax asset impairment, exit and implementation costs consisted of the following:
| For the Six Months Ended June 30, 2019 |  | For the Six Months Ended June 30, 2018
| Asset Impairment and Exit Costs |  | Implementation Costs (1) |  | Total |  | Asset Impairment and Exit Costs |  | Implementation Costs (2) |  | Total
| (in millions)
Smokeable products | $ | 50 |  |  | $ | 25 |  |  | $ | 75 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 3 |
Smokeless products | 8 |  |  | 3 |  |  | 11 |  |  | 3 |  |  | 3 |  |  | 6 |
All other | 14 |  |  | (7 | ) |  | 7 |  |  | — |  |  | — |  |  | — |
General corporate | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |
Total | 73 |  |  | 21 |  |  | 94 |  |  | 4 |  |  | 5 |  |  | 9 |
Plus amounts included in net periodic benefit income, excluding service cost (3) | 12 |  |  | — |  |  | 12 |  |  | — |  |  | — |  |  | — |
Total | $ | 85 |  |  | $ | 21 |  |  | $ | 106 |  |  | $ | 4 |  |  | $ | 5 |  |  | $ | 9 |
(1) Included in cost of sales ($2 million cost reversal) and marketing, administration and research costs ($23 million) 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.
| For the Three Months Ended June 30, 2019 |  | For the Three Months Ended June 30, 2018
| Asset Impairment and Exit Costs |  | Implementation Costs (1) |  | Total |  | Asset Impairment and Exit Costs |  | Implementation Costs (2) |  | Total
| (in millions)
Smokeable products | $ | 14 |  |  | $ | 17 |  |  | $ | 31 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |
Smokeless products | — |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 3 |  |  | 4 |
All other | 19 |  |  | (7 | ) |  | 12 |  |  | — |  |  | — |  |  | — |
Total | $ | 33 |  |  | $ | 12 |  |  | $ | 45 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 6 |
(1) Included in cost of sales ($2 million cost reversal) and marketing, administration and research costs ($14 million) in Altria’s condensed consolidated statement of earnings. (2) Included in cost of sales in Altria’s condensed consolidated statements of earnings. The 2019 pre-tax asset impairment, exit and implementation costs are related to the cost reduction program and the refocus of innovative product efforts discussed below. The movement in the restructuring liabilities, substantially all of which are severance liabilities, was as follows:
| For the Six Months Ended June 30, 2019
| (in millions)
Balances at December 31, 2018 | $ | 155 |
Charges | 51 |
Cash spent | (86 | )
Balances at June 30, 2019 | $ | 120 |
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 $235 million, which now includes employee benefit-related curtailment and settlement costs. 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 $205 million and other costs of approximately $30 million. For the six and three months ended June 30, 2019, total pre-tax asset impairment, exit and implementation costs were $94 million and $33 million, respectively. Total pre-tax charges incurred since the inception of this cost reduction program were $215 million at June 30, 2019. Cash payments related to this cost reduction program of $72 million and $50 million were made during the six and three months ended June 30, 2019, respectively. There were no cash payments related to this program in 2018. Refocus of Innovative Product Efforts During the fourth quarter of 2018, Altria announced its decision to refocus its innovative product efforts, which included Nu Mark’s discontinuation of production and distribution of all e-vapor products. During the six and three months ended June 30, 2019, Altria incurred pre-tax charges of $12 million, consisting of asset impairment, exit and implementation costs. During 2018, Altria incurred pre-tax charges of $272 million, consisting of asset impairment and exit costs of $209 million related to the impairment of goodwill and other intangible assets and other charges of $63 million related to inventory write-offs and accelerated depreciation. The pre-tax charges related to the refocus of innovative product efforts have been substantially completed. The majority of the charges related to these efforts did not result in cash payments.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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