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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes and Provision for Income Taxes

Earnings (losses) before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2020, 2019 and 2018: 

(in millions)			2020						2019						2018
Earnings (losses) before income taxes:
United States			$	6,842					$	266					$	9,441
Outside United States			48						500						(100)
Total			$	6,890					$	766					$	9,341
Provision (benefit) for income taxes:
Current:
Federal			$	2,025					$	1,686					$	1,911
State and local			553						470						519
Outside United States			22						3						1
			2,600						2,159						2,431
Deferred:
Federal			(130)						(78)						(18)
State and local			(34)						(19)						(42)
Outside United States			—						2						3
			(164)						(95)						(57)
Total provision for income taxes			$	2,436					$	2,064					$	2,374

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows: 

(in millions)			2020						2019						2018
Balance at beginning of year			$	64					$	85					$	66
Additions for tax positions of prior years			12						32						22
Reductions for tax positions of prior years			(2)						(16)						(1)
Tax settlements			—						(37)						(2)
Balance at end of year			$	74					$	64					$	85

Schedule of Unrecognized Tax Benefits and Consolidated Liability for Tax Contingencies

Unrecognized tax benefits and Altria’s consolidated liability for tax contingencies at December 31, 2020 and 2019 were as follows:

(in millions)			2020						2019
Unrecognized tax benefits			$	74					$	64
Accrued interest and penalties			15						11
Tax credits and other indirect benefits			(1)						(1)
Liability for tax contingencies			$	88					$	74

Reconciliation of Effective Tax Rate and U.S. Federal Statutory Rate

A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to earnings (losses) before income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows:

						2020												2019												2018
(dollars in millions)						$						%						$						%						$						%
U.S. federal statutory rate						$	1,447					21.0		%				$	161					21.0		%				$	1,962					21.0		%
Increase (decrease) resulting from:
State and local income taxes, net of federal tax benefit						410						6.0						356						46.5						377						4.0
Tax basis in foreign investments						23						0.3						84						11.0						140						1.5
Deemed repatriation tax						—						—						—						—						14						0.1
Uncertain tax positions						9						0.1						(40)						(5.2)						8						0.1
Investment in ABI						(16)						(0.2)						(210)						(27.4)						(104)						(1.1)
Investment in JUUL						537						7.8						1,808						236.0						15						0.2
Investment in Cronos						20						0.3						(66)						(8.6)						—						—
Other (1)						6						0.1						(29)						(3.8)						(38)						(0.4)
Effective tax rate						$	2,436					35.4		%				$	2,064					269.5		%				$	2,374					25.4		%

(1) Other in 2019 is primarily deferred profit sharing dividends tax benefit of $21 million and immaterial miscellaneous items.

Schedule of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at December 31, 2020 and 2019:

(in millions)			2020						2019
Deferred income tax assets:
Accrued postretirement and postemployment benefits			$	524					$	491
Settlement charges			888						833
Accrued pension costs			148						131
Investment in JUUL			2,642						2,047
Investment in Cronos			128						197
Net operating losses and tax credit carryforwards			81						92
Total deferred income tax assets			4,411						3,791
Deferred income tax liabilities:
Property, plant and equipment			(273)						(255)
Intangible assets			(2,806)						(2,758)
Investment in ABI			(2,819)						(3,115)
Finance assets, net			(117)						(204)
Other			(12)						(158)
Total deferred income tax liabilities			(6,027)						(6,490)
Valuation allowances			(2,817)						(2,324)
Net deferred income tax liabilities			$	(4,433)					$	(5,023)

Summary of Valuation Allowance

A reconciliation of the beginning and ending valuation allowances for the years ended December 31, 2020, 2019 and 2018 was as follows: 

(in millions)						2020						2019						2018
Balance at beginning of year						$	2,324					$	71					$	—
Additions to valuation allowance related to Altria’s initial Investment in Cronos						—						352						—
Additions to valuation allowance charged to income tax expense						692						2,063						71
Reductions to valuation allowance credited to income tax benefit						(200)						(159)						—
Foreign currency translation						1						(3)						—
Balance at end of year						$	2,817					$	2,324					$	71

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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