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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans

The benefit obligations, plan assets and funded status of Altria’s pension and postretirement plans at December 31, 2019 and 2018 were as follows:

	Pension								Postretirement
(in millions)	2019				2018				2019				2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	7,726			$	8,510			$	2,040			$	2,335
Service cost	70				81				16				18
Interest cost	306				276				76				70
Benefits paid	(493		)		(488		)		(126		)		(130		)
Actuarial (gains) losses	1,025				(660		)		78				(298		)
Settlement and curtailment	25				(18		)		7				—
Other	—				25				—				45
Benefit obligation at end of year	8,659				7,726				2,091				2,040
Change in plan assets:
Fair value of plan assets at beginning of year	7,138				8,015				211				270
Actual return on plan assets	1,466				(430		)		45				(14		)
Employer contributions	56				41				—				—
Benefits paid	(493		)		(488		)		(43		)		(45		)
Fair value of plan assets at end of year	8,167				7,138				213				211
Funded status at December 31	$	(492	)		$	(588	)		$	(1,878	)		$	(1,829	)
Amounts recognized on Altria’s consolidated balance sheets were as follows:
Other accrued liabilities	$	(26	)		$	(44	)		$	(81	)		$	(80	)
Accrued pension costs	(473		)		(544		)		—				—
Other assets	7				—				—				—
Accrued postretirement health care costs	—				—				(1,797		)		(1,749		)
	$	(492	)		$	(588	)		$	(1,878	)		$	(1,829	)

Net Pension Liability Recognized in Consolidated Balance Sheets

The benefit obligations, plan assets and funded status of Altria’s pension and postretirement plans at December 31, 2019 and 2018 were as follows:

	Pension								Postretirement
(in millions)	2019				2018				2019				2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	7,726			$	8,510			$	2,040			$	2,335
Service cost	70				81				16				18
Interest cost	306				276				76				70
Benefits paid	(493		)		(488		)		(126		)		(130		)
Actuarial (gains) losses	1,025				(660		)		78				(298		)
Settlement and curtailment	25				(18		)		7				—
Other	—				25				—				45
Benefit obligation at end of year	8,659				7,726				2,091				2,040
Change in plan assets:
Fair value of plan assets at beginning of year	7,138				8,015				211				270
Actual return on plan assets	1,466				(430		)		45				(14		)
Employer contributions	56				41				—				—
Benefits paid	(493		)		(488		)		(43		)		(45		)
Fair value of plan assets at end of year	8,167				7,138				213				211
Funded status at December 31	$	(492	)		$	(588	)		$	(1,878	)		$	(1,829	)
Amounts recognized on Altria’s consolidated balance sheets were as follows:
Other accrued liabilities	$	(26	)		$	(44	)		$	(81	)		$	(80	)
Accrued pension costs	(473		)		(544		)		—				—
Other assets	7				—				—				—
Accrued postretirement health care costs	—				—				(1,797		)		(1,749		)
	$	(492	)		$	(588	)		$	(1,878	)		$	(1,829	)

Assumptions used to Determine Benefit Obligations

The following assumptions were used to determine Altria’s pension and postretirement benefit obligations at December 31:

	Pension						Postretirement
	2019			2018			2019			2018
Discount rate	3.4	%		4.4	%		3.4	%		4.4	%
Rate of compensation increase	4.0			4.0			—			—
Health care cost trend rate assumed for next year	—			—			6.5			6.5
Ultimate trend rate	—			—			5.0			5.0
Year that the rate reaches the ultimate trend rate	—			—			2025			2025

Schedule of Net Benefit Costs

Net periodic benefit cost (income) consisted of the following for the years ended December 31, 2019, 2018 and 2017:

	Pension												Postretirement
(in millions)	2019				2018				2017				2019				2018				2017
Service cost	$	70			$	81			$	75			$	16			$	18			$	16
Interest cost	306				276				288				76				70				76
Expected return on plan assets	(576		)		(585		)		(601		)		(15		)		(19		)		—
Amortization:
Net loss	159				225				197				5				21				25
Prior service cost (credit)	6				4				4				(30		)		(42		)		(38		)
Settlement and curtailment	27				16				86				5				—				—
Net periodic benefit cost (income)	$	(8	)		$	17			$	49			$	57			$	48			$	79

Schedule Of Termination Settlement And Curtailment Cost

The amounts included in settlement and curtailment in the table above were comprised of the following changes:

	Pension												Postretirement
(in millions)	2019				2018				2017				2019
Benefit obligation	$	6			$	—			$	—			$	10
Other comprehensive earnings/losses:
Net loss	20				13				86				—
Prior service cost (credit)	1				3				—				(5		)
	$	27			$	16			$	86			$	5

Schedule Of Assumptions To Determine Net Periodic Benefit Cost

The following assumptions were used to determine Altria’s net periodic benefit cost for the years ended December 31:

	Pension									Postretirement
	2019			2018			2017			2019			2018			2017
Discount rates:
Service cost	4.6	%		3.8	%		4.3	%		4.5	%		3.8	%		4.3	%
Interest cost	4.0			3.3			3.5			4.0			3.3			3.5
Expected rate of return on plan assets	7.8			7.8			8.0			7.8			7.8			—
Rate of compensation increase	4.0			4.0			4.0			—			—			—
Health care cost trend rate	—			—			—			6.5			7.0			7.0

Schedule of Fair Value of Plan Assets by Asset Category

The fair values of the pension plan assets by asset category at December 31, 2019 and 2018 were as follows:

	2019											2018
(in millions)	Level 1			Level 2				Total				Level 1			Level 2				Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—		$	811			$	811			$	—		$	868			$	868
U.S. municipal bonds	—			57				57				—			73				73
Foreign government and agencies	—			98				98				—			115				115
Corporate debt instruments:
Above investment grade	—			3,523				3,523				—			1,726				1,726
Below investment grade and no rating	—			521				521				—			478				478
Common stock:
International equities	296			—				296				237			—				237
U.S. equities	1,263			—				1,263				1,082			—				1,082
Other, net	(4		)	479				475				36			339				375
	$	1,555		$	5,489			$	7,044			$	1,355		$	3,599			$	4,954
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds
U.S. large cap								$	825										$	1,722
U.S. small cap								386											328
International developed markets								106											86
Total investments measured at NAV								$	1,317										$	2,136
Other								(194		)									48
Fair value of plan assets, net								$	8,167										$	7,138

Level 3 holdings and transactions were immaterial to total plan assets at December 31, 2019 and 2018.

The fair value of the postretirement plan assets at December 31, 2019 and 2018 were as follows:

	2019											2018
(in millions)	Level 1			Level 2				Total				Level 1			Level 2				Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—		$	11			$	11			$	—		$	13			$	13
Foreign government and agencies	—			5				5				—			3				3
Corporate debt instruments:
Above investment grade	—			63				63				—			71				71
Below investment grade and no rating	—			9				9				—			8				8
Other, net	—			7				7				2			2				4
	$	—		$	95			$	95			$	2		$	97			$	99
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds:
U.S. large cap								$	97										$	77
International developed markets								24											26
Total investments measured at NAV								$	121										$	103
Other								(3		)									9
Fair value of plan assets, net								$	213										$	211

The actual composition of Altria’s plan assets at December 31, 2019 was broadly characterized with the following allocation:

	Pension			Postretirement
Equity securities	35	%		56	%
Corporate bonds	52	%		34	%
U.S. Treasury and foreign government securities	13	%		10	%

Estimated Future Benefit Payments

Estimated future benefit payments at December 31, 2019 were as follows:

(in millions)	Pension				Postretirement
2020	$	472			$	126
2021	477				124
2022	479				121
2023	483				117
2024	481				115
2025-2029	2,430				555

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The amounts recorded in accumulated other comprehensive losses at December 31, 2019 consisted of the following:

(in millions)	Pension				Post- retirement				Post- employment				Total
Net loss	$	(2,565	)		$	(389	)		$	(45	)		$	(2,999	)
Prior service (cost) credit	(27		)		72				(5		)		40
Deferred income taxes	670				86				11				767
Amounts recorded in accumulated other comprehensive losses	$	(1,922	)		$	(231	)		$	(39	)		$	(2,192	)

The amounts recorded in accumulated other comprehensive losses at December 31, 2018 consisted of the following:

(in millions)	Pension				Post- retirement				Post- employment				Total
Net loss	$	(2,591	)		$	(327	)		$	(78	)		$	(2,996	)
Prior service (cost) credit	(34		)		108				(6		)		68
Deferred income taxes	679				61				20				760
Amounts recorded in accumulated other comprehensive losses	$	(1,946	)		$	(158	)		$	(64	)		$	(2,168	)

Movements in Other Comprehensive Earnings/Losses

The movements in other comprehensive earnings/losses during the year ended December 31, 2019 were as follows:

(in millions)	Pension				Post- retirement				Post- employment				Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	159			$	5			$	20			$	184
Prior service cost/credit	6				(30		)		1				(23		)
Other expense (income):
Net loss	20				—				(4		)		16
Prior service cost/credit	1				(5		)		—				(4		)
Deferred income taxes	(47		)		7				(4		)		(44		)
	$	139			$	(23	)		$	13			$	129
Other movements during the year:
Net loss	$	(153	)		$	(67	)		$	17			$	(203	)
Prior service cost/credit	—				(1		)		—				(1		)
Deferred income taxes	38				18				(5		)		51
	$	(115	)		$	(50	)		$	12			$	(153	)
Total movements in other comprehensive earnings/losses	$	24			$	(73	)		$	25			$	(24	)

The movements in other comprehensive earnings/losses during the year ended December 31, 2018 were as follows:

(in millions)	Pension				Post-retirement				Post-employment				Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	225			$	21			$	17			$	263
Prior service cost/credit	4				(42		)		—				(38		)
Other expense (income):
Net loss	13				—				—				13
Prior service cost/credit	3				—				—				3
Deferred income taxes	(61		)		4				(4		)		(61		)
	$	184			$	(17	)		$	13			$	180
Other movements during the year:
Adoption of ASU 2018-02 (1)	$	(330	)		$	(55	)		$	(12	)		$	(397	)
Net loss	(336		)		264				(2		)		(74		)
Prior service cost/credit	(26		)		(45		)		(6		)		(77		)
Deferred income taxes	91				(54		)		2				39
	$	(601	)		$	110			$	(18	)		$	(509	)
Total movements in other comprehensive earnings/losses	$	(417	)		$	93			$	(5	)		$	(329	)

⁽¹⁾ Reflects the reclassification of the stranded income tax effects of the Tax Reform Act.

The movements in other comprehensive earnings/losses during the year ended December 31, 2017 were as follows:

(in millions)	Pension				Post- retirement				Post- employment				Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	197			$	25			$	17			$	239
Prior service cost/credit	4				(38		)		—				(34		)
Other expense (income):
Net loss	86				—				—				86
Deferred income taxes	(113		)		6				(6		)		(113		)
	$	174			$	(7	)		$	11			$	178
Other movements during the year:
Net loss	$	81			$	(56	)		$	(11	)		$	14
Prior service cost/credit	—				38				—				38
Deferred income taxes	(32		)		7				4				(21		)
	$	49			$	(11	)		$	(7	)		$	31
Total movements in other comprehensive earnings/losses	$	223			$	(18	)		$	4			$	209

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