XML 31 R13.htm IDEA: XBRL DOCUMENT
v3.22.4

Goodwill and Other Intangible Assets, net | 12 Months Ended
--- | ---
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill and other intangible assets, net, were as follows at December 31:
| Goodwill |  | Other Intangible Assets, net
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Smokeable products segment | $ | 99 |  |  | $ | 99 |  |  | $ | 2,989 |  |  | $ | 3,017 |
Oral tobacco products segment | 5,078 |  |  | 5,078 |  |  | 9,097 |  |  | 9,129 |
Other | — |  |  | — |  |  | 298 |  |  | 160 |
Total | $ | 5,177 |  |  | $ | 5,177 |  |  | $ | 12,384 |  |  | $ | 12,306 |
Other intangible assets consisted of the following at December 31:
| 2022 |  | 2021
(in millions) | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Indefinite-lived intangible assets | $ | 11,443 |  |  | $ | — |  |  | $ | 11,443 |  |  | $ | — |
Definite-lived intangible assets | 1,411 |  |  | 470 |  |  | 1,260 |  |  | 397 |
Total other intangible assets | $ | 12,854 |  |  | $ | 470 |  |  | $ | 12,703 |  |  | $ | 397 |
At December 31, 2022, substantially all of our indefinite-lived intangible assets consisted of (i) MST and snus trademarks of $8.8 billion, which consists of Copenhagen, Skoal and other MST and snus trademarks of $4.0 billion, $3.9 billion and $0.9 billion, respectively, and (ii) cigar trademarks of $2.6 billion from our 2009 acquisition of UST and 2007 acquisition of Middleton, respectively. Definite-lived intangible assets, which consist primarily of intellectual property, certain cigarette trademarks and customer relationships, are amortized over a weighted-average period of 20 years. Pre-tax amortization expense for definite-lived intangible assets during the years ended December 31, 2022, 2021 and 2020, was $73 million, $72 million and $72 million, respectively. Annual amortization expense for each of the next five years is estimated to be approximately $75 million, assuming no additional transactions occur that require the amortization of intangible assets. In October 2022, ALCS and Altria (solely with respect to certain provisions thereunder) entered into an agreement with Triaga, Inc. (“Triaga”), a subsidiary of Philip Morris International Inc. (“PMI”), and PMI (solely with respect to certain provisions thereunder), to, among other things, transition and ultimately conclude our relationship with respect to the IQOS Tobacco Heating System (“IQOS System”) in the United States. Under the terms of the agreement, Triaga paid ALCS $1.0 billion upon entry into the agreement and is obligated to make an additional payment of $1.7 billion (plus interest thereon from the effective date of October 19, 2022 at a per annum rate equal to 6%) to ALCS by July 15, 2023, for a total cash payment of approximately $2.7 billion (plus interest). For the consideration received, ALCS has agreed to assign to Triaga exclusive U.S. commercialization rights to the IQOS System effective April 30, 2024. PMI will not have access to the Marlboro brand name or other brand assets, as PM USA owns the Marlboro trademark in the United States. As a result of the agreement, we recorded (i) a pre-tax $2.7 billion deferred gain, which we expect to recognize in earnings when we relinquish our rights to the IQOS System, (ii) a $1.7 billion receivable and (iii) a $21 million interest receivable on our consolidated balance sheet at December 31, 2022. For the year ended December 31, 2022, we recorded $21 million of interest income in our consolidated statement of earnings. For the year ended December 31, 2022, we recorded $1.0 billion in cash received upon entry into the agreement. The changes in goodwill and net carrying amount of intangible assets were as follows:
| 2022 |  | 2021
(in millions) | Goodwill |  | Other Intangible Assets, net |  | Goodwill |  | Other Intangible Assets, net
Balance at January 1 | $ | 5,177 |  |  | $ | 12,306 |  |  | $ | 5,177 |  |  | $ | 12,615 |
Changes due to: |  |  |  |  |  |  |
Acquisitions (1) | — |  |  | 151 |  |  | — |  |  | — |
Dispositions (2) | — |  |  | — |  |  | — |  |  | (237) |
Amortization | — |  |  | (73) |  |  | — |  |  | (72) |
Balance at December 31 | $ | 5,177 |  |  | $ | 12,384 |  |  | $ | 5,177 |  |  | $ | 12,306 |
(1) Acquisitions of certain intellectual property related to other tobacco products, which included a $50 million non-cash contribution made by JTIUH to Horizon. For additional information regarding Horizon, see Note 1. Background and Basis of Presentation. (2) Dispositions related to the Ste. Michelle Transaction. See Note 1. Background and Basis of Presentation. During 2022, 2021 and 2020, our annual impairment test of goodwill and indefinite-lived intangible assets resulted in no impairment charges. At December 31, 2022 and 2021, there were no accumulated impairment losses related to goodwill.

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

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration