false2021Q2000076418012/310.33330.3333P3YP1Y2111111100007641802021-01-012021-06-300000764180mo:CommonStock0.3313ParValueMember2021-01-012021-06-300000764180mo:CommonStock1.000NotesDue2023Member2021-01-012021-06-300000764180mo:CommonStock1.700NotesDue2025Member2021-01-012021-06-300000764180mo:CommonStock2.200NotesDue2027Member2021-01-012021-06-300000764180mo:CommonStock3.125NotesDue2031Member2021-01-012021-06-30xbrli:shares00007641802021-07-20iso4217:USD00007641802021-06-3000007641802020-12-31iso4217:USDxbrli:shares00007641802020-01-012020-06-3000007641802021-04-012021-06-3000007641802020-04-012020-06-300000764180us-gaap:CommonStockMember2020-12-310000764180us-gaap:AdditionalPaidInCapitalMember2020-12-310000764180us-gaap:RetainedEarningsMember2020-12-310000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000764180us-gaap:TreasuryStockMember2020-12-310000764180us-gaap:NoncontrollingInterestMember2020-12-310000764180us-gaap:RetainedEarningsMember2021-01-012021-06-300000764180us-gaap:NoncontrollingInterestMember2021-01-012021-06-300000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000764180us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300000764180us-gaap:TreasuryStockMember2021-01-012021-06-300000764180us-gaap:CommonStockMember2021-06-300000764180us-gaap:AdditionalPaidInCapitalMember2021-06-300000764180us-gaap:RetainedEarningsMember2021-06-300000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000764180us-gaap:TreasuryStockMember2021-06-300000764180us-gaap:NoncontrollingInterestMember2021-06-300000764180us-gaap:CommonStockMember2019-12-310000764180us-gaap:AdditionalPaidInCapitalMember2019-12-310000764180us-gaap:RetainedEarningsMember2019-12-310000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000764180us-gaap:TreasuryStockMember2019-12-310000764180us-gaap:NoncontrollingInterestMember2019-12-3100007641802019-12-310000764180us-gaap:RetainedEarningsMember2020-01-012020-06-300000764180us-gaap:NoncontrollingInterestMember2020-01-012020-06-300000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000764180us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300000764180us-gaap:TreasuryStockMember2020-01-012020-06-300000764180us-gaap:CommonStockMember2020-06-300000764180us-gaap:AdditionalPaidInCapitalMember2020-06-300000764180us-gaap:RetainedEarningsMember2020-06-300000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000764180us-gaap:TreasuryStockMember2020-06-300000764180us-gaap:NoncontrollingInterestMember2020-06-3000007641802020-06-300000764180us-gaap:CommonStockMember2021-03-310000764180us-gaap:AdditionalPaidInCapitalMember2021-03-310000764180us-gaap:RetainedEarningsMember2021-03-310000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000764180us-gaap:TreasuryStockMember2021-03-310000764180us-gaap:NoncontrollingInterestMember2021-03-3100007641802021-03-310000764180us-gaap:RetainedEarningsMember2021-04-012021-06-300000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764180us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000764180us-gaap:TreasuryStockMember2021-04-012021-06-300000764180us-gaap:NoncontrollingInterestMember2021-04-012021-06-300000764180us-gaap:CommonStockMember2020-03-310000764180us-gaap:AdditionalPaidInCapitalMember2020-03-310000764180us-gaap:RetainedEarningsMember2020-03-310000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000764180us-gaap:TreasuryStockMember2020-03-310000764180us-gaap:NoncontrollingInterestMember2020-03-3100007641802020-03-310000764180us-gaap:RetainedEarningsMember2020-04-012020-06-300000764180us-gaap:NoncontrollingInterestMember2020-04-012020-06-300000764180us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764180us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000764180us-gaap:TreasuryStockMember2020-04-012020-06-30xbrli:pure0000764180mo:HelixInnovationsLLCMember2021-04-292021-04-290000764180mo:HelixInnovationsLLCMember2020-12-012021-04-2900007641802020-12-012021-04-290000764180mo:July2019ShareRepurchaseProgramMember2019-07-310000764180mo:July2019ShareRepurchaseProgramMember2020-04-300000764180mo:July2019ShareRepurchaseProgramMember2020-01-012020-12-310000764180mo:January2021ShareRepurchaseProgramMember2021-01-310000764180mo:January2021ShareRepurchaseProgramMember2021-06-300000764180mo:January2021ShareRepurchaseProgramMember2021-01-012021-06-300000764180mo:January2021ShareRepurchaseProgramMember2021-04-012021-06-300000764180mo:ABInBevMember2021-06-300000764180mo:ABInBevMember2020-12-310000764180mo:JUULMember2021-06-300000764180mo:JUULMember2020-12-310000764180mo:CronosGroupInc.Member2021-06-300000764180mo:CronosGroupInc.Member2020-12-310000764180us-gaap:CommonStockMembermo:CronosGroupInc.Member2021-06-300000764180mo:CronosGroupInc.Membermo:EquityContractWarrantMember2021-06-300000764180mo:CronosGroupInc.Membermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180us-gaap:CommonStockMembermo:CronosGroupInc.Member2020-12-310000764180mo:CronosGroupInc.Membermo:EquityContractWarrantMember2020-12-310000764180mo:CronosGroupInc.Membermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180mo:ABInBevMember2021-01-012021-06-300000764180mo:ABInBevMember2020-01-012020-06-300000764180mo:ABInBevMember2021-04-012021-06-300000764180mo:ABInBevMember2020-04-012020-06-300000764180mo:CronosGroupInc.Member2021-01-012021-06-300000764180mo:CronosGroupInc.Member2020-01-012020-06-300000764180mo:CronosGroupInc.Member2021-04-012021-06-300000764180mo:CronosGroupInc.Member2020-04-012020-06-300000764180mo:JUULMember2021-01-012021-06-300000764180mo:JUULMember2020-01-012020-06-300000764180mo:JUULMember2021-04-012021-06-300000764180mo:JUULMember2020-04-012020-06-300000764180us-gaap:FairValueInputsLevel1Membermo:ABInBevMember2021-06-300000764180us-gaap:FairValueInputsLevel1Membermo:ABInBevMember2020-12-310000764180mo:ABInBevMember2020-01-012020-12-310000764180mo:JUULMember2018-12-310000764180mo:JUULMember2020-10-3100007641802020-10-310000764180mo:JUULMembermo:EquityMethodInvestmentsFairValueOptionMember2020-12-310000764180mo:JUULMembermo:EquityMethodInvestmentsFairValueOptionMember2021-01-012021-06-300000764180mo:JUULMembermo:EquityMethodInvestmentsFairValueOptionMember2021-06-30iso4217:CADxbrli:sharesiso4217:CAD0000764180mo:CronosGroupInc.Membermo:EquityContractWarrantMember2021-01-012021-06-300000764180mo:CronosGroupInc.Membermo:EquityContractPreemptiveRIghtsMember2021-01-012021-06-300000764180mo:CronosGroupInc.Memberus-gaap:SubsequentEventMembermo:EquityContractWarrantMember2021-07-262021-07-260000764180mo:CronosGroupInc.Memberus-gaap:SubsequentEventMembermo:EquityContractPreemptiveRIghtsMember2021-07-262021-07-260000764180mo:CronosGroupInc.Membermo:EquityContractWarrantAndEquityContractPreemptiveRightsMember2021-01-012021-06-300000764180mo:CronosGroupInc.Memberus-gaap:FairValueInputsLevel1Member2021-06-300000764180mo:CronosGroupInc.Memberus-gaap:FairValueInputsLevel1Member2020-12-310000764180mo:CronosGroupInc.Member2020-01-012020-12-310000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2020-12-310000764180mo:ForeignCurrencyDenominatedDebtMember2021-06-300000764180mo:ForeignCurrencyDenominatedDebtMember2020-12-310000764180mo:EquityContractPreemptiveRIghtsMemberus-gaap:MeasurementInputSharePriceMember2021-06-300000764180mo:EquityContractPreemptiveRIghtsMemberus-gaap:MeasurementInputSharePriceMember2020-12-310000764180mo:EquityContractWarrantMemberus-gaap:MeasurementInputSharePriceMember2021-06-300000764180mo:EquityContractWarrantMemberus-gaap:MeasurementInputSharePriceMember2020-12-31mo:year0000764180us-gaap:MeasurementInputExpectedTermMembermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180us-gaap:MeasurementInputExpectedTermMembermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180us-gaap:MeasurementInputExpectedTermMembermo:EquityContractWarrantMember2021-06-300000764180us-gaap:MeasurementInputExpectedTermMembermo:EquityContractWarrantMember2020-12-310000764180mo:EquityContractPreemptiveRIghtsMemberus-gaap:MeasurementInputPriceVolatilityMember2021-06-300000764180mo:EquityContractPreemptiveRIghtsMemberus-gaap:MeasurementInputPriceVolatilityMember2020-12-310000764180mo:EquityContractWarrantMemberus-gaap:MeasurementInputPriceVolatilityMember2021-06-300000764180mo:EquityContractWarrantMemberus-gaap:MeasurementInputPriceVolatilityMember2020-12-310000764180us-gaap:MeasurementInputRiskFreeInterestRateMembermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180us-gaap:MeasurementInputRiskFreeInterestRateMembermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180us-gaap:MeasurementInputRiskFreeInterestRateMembermo:EquityContractWarrantMember2021-06-300000764180us-gaap:MeasurementInputRiskFreeInterestRateMembermo:EquityContractWarrantMember2020-12-310000764180us-gaap:MeasurementInputExpectedDividendRateMembermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180us-gaap:MeasurementInputExpectedDividendRateMembermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180mo:EquityContractWarrantMemberus-gaap:MeasurementInputExpectedDividendRateMember2021-06-300000764180mo:EquityContractWarrantMemberus-gaap:MeasurementInputExpectedDividendRateMember2020-12-310000764180mo:MeasurementInputWeightedAverageExpectedTermMembermo:EquityContractPreemptiveRIghtsMembersrt:MinimumMember2021-06-300000764180mo:MeasurementInputWeightedAverageExpectedTermMembersrt:MaximumMembermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180mo:MeasurementInputWeightedAverageExpectedTermMembermo:EquityContractPreemptiveRIghtsMembersrt:MinimumMember2020-12-310000764180mo:MeasurementInputWeightedAverageExpectedTermMembersrt:MaximumMembermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180us-gaap:MeasurementInputRiskFreeInterestRateMembermo:EquityContractPreemptiveRIghtsMembersrt:MinimumMember2021-06-300000764180us-gaap:MeasurementInputRiskFreeInterestRateMembersrt:MaximumMembermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180us-gaap:MeasurementInputRiskFreeInterestRateMembermo:EquityContractPreemptiveRIghtsMembersrt:MinimumMember2020-12-310000764180us-gaap:MeasurementInputRiskFreeInterestRateMembersrt:MaximumMembermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel3Member2019-12-310000764180us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel3Member2020-01-012020-12-310000764180us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel3Member2020-12-310000764180us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-06-300000764180us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel3Member2021-06-300000764180us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000764180us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000764180us-gaap:ForeignExchangeContractMembermo:OtherAccruedLiabilitiesMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000764180us-gaap:ForeignExchangeContractMembermo:OtherAccruedLiabilitiesMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:OtherLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000764180us-gaap:NetInvestmentHedgingMembermo:InvestmentsInEquitySecuritiesMembermo:EquityContractWarrantMemberus-gaap:NondesignatedMember2021-06-300000764180us-gaap:NetInvestmentHedgingMembermo:InvestmentsInEquitySecuritiesMembermo:EquityContractWarrantMemberus-gaap:NondesignatedMember2020-12-310000764180us-gaap:NetInvestmentHedgingMembermo:InvestmentsInEquitySecuritiesMemberus-gaap:NondesignatedMembermo:EquityContractPreemptiveRIghtsMember2021-06-300000764180us-gaap:NetInvestmentHedgingMembermo:InvestmentsInEquitySecuritiesMemberus-gaap:NondesignatedMembermo:EquityContractPreemptiveRIghtsMember2020-12-310000764180us-gaap:EquityContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:NondesignatedMember2021-06-300000764180us-gaap:EquityContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:NondesignatedMember2020-12-310000764180us-gaap:NetInvestmentHedgingMember2021-06-300000764180us-gaap:NetInvestmentHedgingMember2020-12-310000764180mo:EquityContractPreemptiveRIghtsMember2021-01-012021-06-300000764180mo:EquityContractPreemptiveRIghtsMember2020-01-012020-06-300000764180mo:EquityContractPreemptiveRIghtsMember2021-04-012021-06-300000764180mo:EquityContractPreemptiveRIghtsMember2020-04-012020-06-300000764180mo:EquityContractWarrantMember2021-01-012021-06-300000764180mo:EquityContractWarrantMember2020-01-012020-06-300000764180mo:EquityContractWarrantMember2021-04-012021-06-300000764180mo:EquityContractWarrantMember2020-04-012020-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2020-01-012020-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-04-012021-06-300000764180us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2020-04-012020-06-300000764180mo:ForeignCurrencyDenominatedDebtMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-06-300000764180mo:ForeignCurrencyDenominatedDebtMemberus-gaap:NetInvestmentHedgingMember2020-01-012020-06-300000764180mo:ForeignCurrencyDenominatedDebtMemberus-gaap:NetInvestmentHedgingMember2021-04-012021-06-300000764180mo:ForeignCurrencyDenominatedDebtMemberus-gaap:NetInvestmentHedgingMember2020-04-012020-06-300000764180us-gaap:NetInvestmentHedgingMember2021-01-012021-06-300000764180us-gaap:NetInvestmentHedgingMember2020-01-012020-06-300000764180us-gaap:NetInvestmentHedgingMember2021-04-012021-06-300000764180us-gaap:NetInvestmentHedgingMember2020-04-012020-06-300000764180us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-06-300000764180us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-06-300000764180us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-06-300000764180us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-06-300000764180us-gaap:PensionPlansDefinedBenefitMember2021-04-012021-06-300000764180us-gaap:PensionPlansDefinedBenefitMember2020-04-012020-06-300000764180us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-06-300000764180us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-04-012020-06-300000764180us-gaap:PensionPlansDefinedBenefitMembersrt:MaximumMember2021-06-300000764180us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MaximumMember2021-06-3000007641802021-05-312021-05-310000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2020-12-310000764180us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2021-01-012021-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2021-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2021-03-310000764180us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2021-04-012021-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2019-12-310000764180us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2020-01-012020-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2020-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-03-310000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2020-03-310000764180us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-04-012020-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMember2020-04-012020-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMember2020-04-012020-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764180us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2021-01-012021-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2020-01-012020-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2021-04-012021-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2020-04-012020-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-04-012020-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764180mo:AccumulatedEquityMethodInvestmentsAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764180us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764180us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764180mo:SmokeableProductsSegmentMember2021-01-012021-06-300000764180mo:SmokeableProductsSegmentMember2020-01-012020-06-300000764180mo:SmokeableProductsSegmentMember2021-04-012021-06-300000764180mo:SmokeableProductsSegmentMember2020-04-012020-06-300000764180mo:OralTobaccoSegmentMember2021-01-012021-06-300000764180mo:OralTobaccoSegmentMember2020-01-012020-06-300000764180mo:OralTobaccoSegmentMember2021-04-012021-06-300000764180mo:OralTobaccoSegmentMember2020-04-012020-06-300000764180mo:WineSegmentMember2021-01-012021-06-300000764180mo:WineSegmentMember2020-01-012020-06-300000764180mo:WineSegmentMember2021-04-012021-06-300000764180mo:WineSegmentMember2020-04-012020-06-300000764180us-gaap:AllOtherSegmentsMember2021-01-012021-06-300000764180us-gaap:AllOtherSegmentsMember2020-01-012020-06-300000764180us-gaap:AllOtherSegmentsMember2021-04-012021-06-300000764180us-gaap:AllOtherSegmentsMember2020-04-012020-06-300000764180us-gaap:MaterialReconcilingItemsMember2021-01-012021-06-300000764180us-gaap:MaterialReconcilingItemsMember2020-01-012020-06-300000764180us-gaap:MaterialReconcilingItemsMember2021-04-012021-06-300000764180us-gaap:MaterialReconcilingItemsMember2020-04-012020-06-300000764180us-gaap:CorporateNonSegmentMember2021-01-012021-06-300000764180us-gaap:CorporateNonSegmentMember2020-01-012020-06-300000764180us-gaap:CorporateNonSegmentMember2021-04-012021-06-300000764180us-gaap:CorporateNonSegmentMember2020-04-012020-06-300000764180us-gaap:OperatingIncomeLossMembermo:PhilipMorrisUSAMembermo:NpmAdjustmentToCostOfSalesMembermo:SmokeableProductsSegmentMembermo:NonParticipatingManufacturerArbitrationPanelDecisionMember2021-01-012021-06-300000764180us-gaap:OperatingSegmentsMembermo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMembermo:SmokeableProductsSegmentMember2021-01-012021-06-300000764180us-gaap:OperatingSegmentsMembermo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMembermo:SmokeableProductsSegmentMember2020-01-012020-06-300000764180us-gaap:OperatingSegmentsMembermo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMembermo:SmokeableProductsSegmentMember2021-04-012021-06-300000764180us-gaap:OperatingSegmentsMembermo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMembermo:SmokeableProductsSegmentMember2020-04-012020-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMemberus-gaap:MaterialReconcilingItemsMember2021-01-012021-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMemberus-gaap:MaterialReconcilingItemsMember2020-01-012020-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMemberus-gaap:MaterialReconcilingItemsMember2021-04-012021-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMemberus-gaap:MaterialReconcilingItemsMember2020-04-012020-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMember2020-01-012020-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMember2021-04-012021-06-300000764180mo:TobaccoandHealthLitigationCasesMembermo:PhilipMorrisUSAMember2020-04-012020-06-300000764180mo:COVID19Member2020-04-012020-06-300000764180mo:COVID19Member2020-01-012020-06-300000764180mo:SmokeableProductsSegmentMembermo:COVID19Member2020-04-012020-06-300000764180mo:SmokeableProductsSegmentMembermo:COVID19Member2020-01-012020-06-300000764180mo:OralTobaccoSegmentMembermo:COVID19Member2020-01-012020-06-300000764180mo:OralTobaccoSegmentMembermo:COVID19Member2020-04-012020-06-300000764180mo:InventoryDisposalCostsandOtherMembermo:WineBusinessStrategicResetMember2020-01-012020-06-300000764180mo:InventoryWriteOffMembermo:WineBusinessStrategicResetMember2020-01-012020-06-300000764180us-gaap:PurchaseCommitmentMembermo:WineBusinessStrategicResetMember2020-01-012020-06-300000764180us-gaap:LineOfCreditMembermo:RevolvingCreditFacilityDueAugust2023Memberus-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300000764180us-gaap:LineOfCreditMembermo:RevolvingCreditFacilityDueAugust2023Memberus-gaap:RevolvingCreditFacilityMember2021-06-30mo:Extension0000764180us-gaap:LineOfCreditMembermo:RevolvingCreditFacilityDueAugust2023Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-06-300000764180us-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300000764180us-gaap:LineOfCreditMembermo:RevolvingCreditFacilityDueAugust2023Memberus-gaap:RevolvingCreditFacilityMember2020-03-012020-03-310000764180mo:USDDenominatedNotesMemberus-gaap:SeniorNotesMember2021-05-012021-05-310000764180mo:USDDenominatedNotesMemberus-gaap:SeniorNotesMember2021-02-280000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotesDue2032Member2021-02-280000764180mo:USDDenominatedNotesDue2041Memberus-gaap:SeniorNotesMember2021-02-280000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotesDue2051Member2021-02-280000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotesDue2061Member2021-02-280000764180us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMember2021-02-012021-02-280000764180us-gaap:SeniorNotesMember2021-06-300000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotes2850PercentDue2022Member2021-06-300000764180mo:USDDenominatedNotes2950PercentDue2023Memberus-gaap:SeniorNotesMember2021-06-300000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotes4000PercentDue2024Member2021-06-300000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotes3800PercentDue2024Member2021-06-300000764180mo:USDDenominatedNotes4400PercentDue2026Memberus-gaap:SeniorNotesMember2021-06-300000764180mo:USDDenominatedNotes4800PercentDue2029Memberus-gaap:SeniorNotesMember2021-06-300000764180mo:USDDenominatedNotes9950PercentDue2038Memberus-gaap:SeniorNotesMember2021-06-300000764180mo:USDDenominatedDebt10200PercentDue2039Memberus-gaap:SeniorNotesMember2021-06-300000764180mo:USDDenominatedDebt6200PercentDue2059Memberus-gaap:SeniorNotesMember2021-06-300000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotes3490PercentDue2022Member2021-03-310000764180us-gaap:SeniorNotesMembermo:USDDenominatedNotes3490PercentDue2022Member2021-01-012021-03-3100007641802021-01-012021-03-31mo:statemo:claim0000764180mo:IndividualSmokingAndHealthCasesMemberus-gaap:SubsequentEventMember2021-07-260000764180mo:IndividualSmokingAndHealthCasesMember2020-07-240000764180mo:IndividualSmokingAndHealthCasesMember2019-07-260000764180us-gaap:SubsequentEventMembermo:HealthCareCostRecoveryActionsMember2021-07-260000764180mo:HealthCareCostRecoveryActionsMember2020-07-240000764180mo:HealthCareCostRecoveryActionsMember2019-07-260000764180us-gaap:SubsequentEventMembermo:EvaporLitigationMember2021-07-260000764180mo:EvaporLitigationMember2020-07-240000764180mo:EvaporLitigationMember2019-07-260000764180us-gaap:SubsequentEventMembermo:OtherTabaccoRelatedCasesMember2021-07-260000764180mo:OtherTabaccoRelatedCasesMember2020-07-240000764180mo:OtherTabaccoRelatedCasesMember2019-07-260000764180mo:IndividualSmokingAndHealthCasesMemberus-gaap:SubsequentEventMemberstpr:ILus-gaap:PendingLitigationMember2021-07-260000764180mo:IndividualSmokingAndHealthCasesMemberus-gaap:SubsequentEventMemberstpr:NMus-gaap:PendingLitigationMember2021-07-260000764180mo:IndividualSmokingAndHealthCasesMemberus-gaap:SubsequentEventMemberstpr:MAus-gaap:PendingLitigationMember2021-07-260000764180mo:IndividualSmokingAndHealthCasesMemberus-gaap:SubsequentEventMemberstpr:FLus-gaap:PendingLitigationMember2021-07-26mo:case0000764180us-gaap:SubsequentEventMembermo:ETSSmokingandHealthCaseFlightAttendantsMemberus-gaap:PendingLitigationMember2021-07-262021-07-26mo:lawsuit0000764180mo:PendingIndividualLawsuitsMemberus-gaap:SubsequentEventMembermo:EvaporLitigationMember2021-07-260000764180mo:PendingLawsuitsFiledByStateOrLocalGovernmentsMemberus-gaap:SubsequentEventMembermo:EvaporLitigationMember2021-07-260000764180mo:ClassActionLawsuitMemberus-gaap:SubsequentEventMembermo:EvaporLitigationMember2021-07-260000764180country:CAus-gaap:SubsequentEventMembermo:HealthCareCostRecoveryActionsMember2021-07-260000764180country:CAus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActionsMember2021-07-260000764180country:CAmo:PhilipMorrisUSAandAltriaGroupMemberus-gaap:SubsequentEventMembermo:HealthCareCostRecoveryActionsMember2021-07-260000764180country:CAmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAandAltriaGroupMemberus-gaap:SubsequentEventMember2021-07-260000764180mo:EngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180stpr:AKmo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberstpr:CAus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:CT1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:FL1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:LA1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:MA1999-01-012021-07-260000764180stpr:MSmo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberstpr:MOus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180stpr:NHmo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberstpr:NJus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberstpr:NYus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180stpr:OHmo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:PA1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberstpr:RIus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:TN1999-01-012021-07-260000764180mo:NonEngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMemberstpr:WV1999-01-012021-07-260000764180mo:TobaccoandHealthJudgmentMember2004-10-012021-06-300000764180mo:EngleProgenyCasesMember2004-10-012021-06-300000764180mo:TobaccoandHealthJudgmentMembermo:LitigationCasesResultsMember2021-01-012021-06-300000764180mo:TobaccoandHealthJudgmentMembermo:LitigationCasesResultsMember2020-01-012020-06-300000764180mo:TobaccoandHealthJudgmentMembermo:LitigationCasesResultsMember2021-04-012021-06-300000764180mo:TobaccoandHealthJudgmentMembermo:LitigationCasesResultsMember2020-04-012020-06-300000764180mo:InterestExpenseRelatedToLitigationMember2021-01-012021-06-300000764180mo:InterestExpenseRelatedToLitigationMember2020-01-012020-06-300000764180mo:InterestExpenseRelatedToLitigationMember2021-04-012021-06-300000764180mo:InterestExpenseRelatedToLitigationMember2020-04-012020-06-300000764180mo:PhilipMorrisUSAMemberus-gaap:AssetsMemberus-gaap:PendingLitigationMember2021-06-300000764180mo:NonEngleProgenySmokingAndHealthCasePrincipeMember2020-02-290000764180mo:NonEngleProgenySmokingandHealthCaseGreeneMember2019-09-300000764180mo:NonEngleProgenySmokingandHealthCaseGreeneMember2020-05-310000764180mo:NonEngleProgenySmokingandHealthCaseGreeneMember2021-02-280000764180mo:NonEngleProgenySmokingandHealthCaseLaramieMember2019-08-310000764180mo:NonEngleProgenySmokingandHealthCaseGentileMember2017-10-310000764180mo:NonEngleProgenySmokingandHealthCaseGentileMembermo:PhilipMorrisUSAMember2017-10-310000764180mo:EngleProgenyCasesMember2000-07-310000764180mo:EngleProgenyCasesMembermo:PhilipMorrisUSAMember2000-07-310000764180mo:EngleProgenyCasesMembermo:PhilipMorrisUSAMember2006-07-012006-07-310000764180mo:EngleProgenyCasesMember2008-01-310000764180us-gaap:SubsequentEventMembermo:EngleProgenyCasesStateMember2021-07-26mo:plantiff0000764180us-gaap:SubsequentEventMembermo:EngleProgenyCasesStateMember2021-07-262021-07-260000764180mo:EngleProgenyCasesFederalMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-260000764180mo:EngleProgenyCasesMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180us-gaap:SubsequentEventMembermo:PhilipMorrisUSAMembermo:EngleProgenyCasesStateMember2021-07-262021-07-260000764180mo:EngleProgenyCasesPearsonDCohenCollarChaconMemberMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180mo:EngleProgenyCasesReiderandBanksMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180mo:EngleProgenyCasesWeingartandHancockMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180mo:EngleProgenyCasesPollariMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180mo:EngleProgenyCasesGlogerRintoulandDuignamMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180mo:EngleProgenyCasesFreemanMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180us-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-260000764180mo:EngleProgenyCasesGarciaMemberus-gaap:PendingLitigationMember2021-05-310000764180mo:EngleProgenyCasesDuignanMemberus-gaap:PendingLitigationMember2020-02-290000764180mo:EngleProgenyCasesDuignanMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2020-02-290000764180mo:EngleProgenyCasesCuddiheeMemberus-gaap:PendingLitigationMember2020-01-310000764180mo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMembermo:EngleProgenyCasesCuddiheeMember2020-01-310000764180mo:EngleProgenyCasesRintoulMemberus-gaap:PendingLitigationMember2019-11-300000764180mo:EngleProgenyCasesRintoulMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2019-11-300000764180mo:EngleProgenyCasesGlogerMemberus-gaap:PendingLitigationMember2019-11-300000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesGlogerMemberus-gaap:PendingLitigationMember2019-11-300000764180mo:EngleProgenyCasesMcCallMemberus-gaap:PendingLitigationMember2019-03-310000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesMcCallMemberus-gaap:PendingLitigationMember2019-03-310000764180mo:EngleProgenyCasesNeffMemberus-gaap:PendingLitigationMember2019-03-310000764180mo:EngleProgenyCasesNeffMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2019-03-310000764180mo:EngleProgenyCasesMahfuzMemberus-gaap:PendingLitigationMember2019-02-280000764180mo:EngleProgenyCasesMahfuzMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2019-02-280000764180mo:EngleProgenyCasesHollimanMemberus-gaap:PendingLitigationMember2019-02-280000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesHollimanMemberus-gaap:PendingLitigationMember2019-02-280000764180mo:EngleProgenyCasesChadwellMemberus-gaap:PendingLitigationMember2018-09-300000764180mo:EngleProgenyCasesChadwellMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2018-09-300000764180mo:EngleProgenyCasesKaplanMemberus-gaap:PendingLitigationMember2018-07-310000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesKaplanMemberus-gaap:PendingLitigationMember2018-07-310000764180mo:EngleProgenyCasesR.DouglasMemberus-gaap:PendingLitigationMember2017-11-300000764180mo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMembermo:EngleProgenyCasesR.DouglasMember2017-11-300000764180mo:EngleProgenyCasesSommersMemberus-gaap:PendingLitigationMember2017-04-300000764180mo:EngleProgenyCasesSommersMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2017-04-300000764180mo:EngleProgenyCasesSommersMemberus-gaap:PendingLitigationMember2021-01-012021-06-300000764180mo:EngleProgenyCasesCooperMemberus-gaap:PendingLitigationMember2015-09-300000764180mo:EngleProgenyCasesCooperMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2015-09-300000764180mo:EngleProgenyCasesD.BrownMemberus-gaap:PendingLitigationMember2015-01-310000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesD.BrownMemberus-gaap:PendingLitigationMember2015-01-310000764180mo:EngleProgenyCasesSommersMemberus-gaap:PendingLitigationMember2021-01-012021-03-310000764180us-gaap:SettledLitigationMembermo:EngleProgenyCasesBergerMember2021-01-012021-03-310000764180us-gaap:SettledLitigationMembermo:EngleProgenyCasesBergerMember2018-10-012018-12-310000764180us-gaap:SettledLitigationMembermo:EngleProgenyCasesSantoroMember2021-01-012021-03-310000764180us-gaap:SettledLitigationMembermo:EngleProgenyCasesSantoroMember2020-04-012020-06-300000764180us-gaap:SettledLitigationMembermo:PhilipMorrisUSAMembermo:EngleProgenyCasesDeanKerrivanMember2020-07-012020-09-300000764180us-gaap:SettledLitigationMembermo:EngleProgenyCasesLandiMember2020-04-012020-06-300000764180mo:EngleProgenyCasesNaugleGoreMBrownJordanTheisMembermo:PhilipMorrisUSAMember2021-06-300000764180mo:EngleProgenyCasesNaugleMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesGoreMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesM.BrownMember2021-01-012021-06-300000764180mo:EngleProgenyCasesJordanMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:EngleProgenyCasesTheisMemberus-gaap:SubsequentEventMembermo:PhilipMorrisUSAMember2021-07-262021-07-260000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesM.BrownMember2021-04-012021-04-290000764180mo:EngleProgenyCasesTheisMembermo:PhilipMorrisUSAMember2021-05-012021-05-310000764180mo:PhilipMorrisUSAMembermo:EngleProgenyCasesLandiMember2021-06-012021-06-300000764180mo:EngleProgenyCasesStateMemberstpr:FL2009-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180stpr:ARmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMemberstpr:CAmo:PhilipMorrisUSAMember1996-05-012021-06-300000764180stpr:DEmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180stpr:DCmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:FL1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMemberstpr:ILmo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMemberstpr:IAmo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:KS1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:LA1996-05-012021-06-300000764180stpr:MDmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180stpr:MImo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:MN1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:NV1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMemberstpr:NJmo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMemberstpr:NYmo:PhilipMorrisUSAMember1996-05-012021-06-300000764180stpr:OHmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:OK1996-05-012021-06-300000764180stpr:ORmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:PA1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMembercountry:PR1996-05-012021-06-300000764180stpr:SCmo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMemberstpr:TXmo:PhilipMorrisUSAMember1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAMemberstpr:WI1996-05-012021-06-300000764180mo:SmokingAndHealthClassActionsMembermo:PhilipMorrisUSAandAltriaGroupMemberus-gaap:SubsequentEventMembermo:BritishColumbiaSaskatchewanMember2021-07-26mo:manufacture0000764180country:CAmo:CanadianTobaccoManufacturersMembermo:SmokingAndHealthClassActionsMember2019-03-310000764180country:CAmo:SmokingAndHealthClassActionsMembermo:AltriaGroupMember2019-03-31mo:ruling0000764180country:CAmo:CanadianTobaccoManufacturersMembermo:SmokingAndHealthClassActionsMember2019-03-012019-03-310000764180country:CAus-gaap:ThreatenedLitigationMembermo:HealthCareCostRecoveryActionsMember2021-06-300000764180country:CAmo:CanadianTobaccoManufacturersMembermo:SmokingAndHealthClassActionsMember2021-06-300000764180mo:HealthCareCostRecoveryActionsMember1998-11-011998-11-300000764180mo:HealthCareCostRecoveryActionsMember1998-11-300000764180mo:HealthCareCostRecoveryActionsMember2021-04-012021-06-300000764180mo:HealthCareCostRecoveryActionsMember2020-04-012020-06-300000764180mo:HealthCareCostRecoveryActionsMember2020-01-012020-06-300000764180mo:HealthCareCostRecoveryActionsMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2004NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions2005NPMAdjustmentMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions2006NPMAdjustmentMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2007NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2008NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2009NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2010NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions2011NPMAdjustmentMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2012NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2013NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2014NPMAdjustmentMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions2015NPMAdjustmentsMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2016NPMAdjustmentsMemberMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2017NPMAdjustmentsMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2018NPMAdjustmentsMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActions2019NPMAdjustmentsMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions2020NPMAdjustmentsMember2021-01-012021-06-300000764180mo:HealthCareCostRecoveryActionsMembermo:PhilipMorrisUSAMember2018-01-012018-12-310000764180us-gaap:SettledLitigationMembermo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActionsMember2018-01-012018-12-310000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActionsMemberus-gaap:PendingLitigationMember2018-01-012018-12-310000764180mo:HealthCareCostRecoveryActionsMembermo:PhilipMorrisUSAMember2021-01-012021-06-300000764180us-gaap:SettledLitigationMemberstpr:NYmo:HealthCareCostRecoveryActionsTransitionYears20042020Membermo:PhilipMorrisUSAMember2015-01-012015-12-310000764180us-gaap:SettledLitigationMemberstpr:MTmo:PhilipMorrisUSAMember2020-01-012020-12-310000764180mo:HealthCareCostRecoveryActions2004NPMAdjustmentMembermo:PhilipMorrisUSAMemberus-gaap:PendingLitigationMember2021-01-012021-06-300000764180mo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions20052007NPMAdjustmentMemberus-gaap:PendingLitigationMember2021-01-012021-06-300000764180mo:PeriodOneMembermo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions20052007NPMAdjustmentMemberus-gaap:PendingLitigationMember2021-01-012021-06-300000764180mo:PeriodTwoMembermo:PhilipMorrisUSAMembermo:HealthCareCostRecoveryActions20052007NPMAdjustmentMemberus-gaap:PendingLitigationMember2021-01-012021-06-300000764180mo:FederalGovernmentsLawsuitMember2006-08-012006-08-310000764180mo:ImplementationofCorrectiveCommunicationsMembermo:FederalGovernmentsLawsuitMembermo:PhilipMorrisUSAMember2019-01-012019-12-310000764180mo:ImplementationofCorrectiveCommunicationsMembermo:FederalGovernmentsLawsuitMembermo:PhilipMorrisUSAMember2014-01-012014-12-310000764180mo:ImplementationofCorrectiveCommunicationsMembermo:FederalGovernmentsLawsuitMembermo:AltriaGroupMember2014-01-012014-12-310000764180mo:ImplementationofCorrectiveCommunicationsMembermo:FederalGovernmentsLawsuitMembermo:AltriaGroupMember2019-01-012019-12-310000764180us-gaap:SubsequentEventMembermo:EvaporLitigationMembermo:PendingLawsuitFiledBySchoolDistrictMember2021-07-260000764180mo:EvaporLitigationMember2020-12-012020-12-310000764180mo:EvaporLitigationMember2021-06-300000764180us-gaap:SettledLitigationMembermo:EvaporLitigationMember2021-01-012021-06-300000764180mo:IQOSMember2018-04-012020-04-300000764180mo:JUULMember2020-04-300000764180us-gaap:SubsequentEventMember2021-07-26mo:complaint00007641802020-11-30mo:shareholder00007641802019-10-012019-12-3100007641802020-08-012020-08-3100007641802021-04-290000764180us-gaap:SubsequentEventMembermo:LightsMember2021-07-260000764180mo:SmokingAndHealthClassActionsMemberus-gaap:SubsequentEventMember2021-07-260000764180mo:PendingIndividualLawsuitsMemberus-gaap:SubsequentEventMembermo:USTLitigationMember2021-07-260000764180us-gaap:LetterOfCreditMember2021-06-300000764180us-gaap:RevolvingCreditFacilityMembermo:CreditAgreementMember2021-06-30mo:court0000764180us-gaap:SubsequentEventMembermo:PhilipMorrisUSAMembermo:LightsMember2021-07-2600007641802020-09-012020-09-3000007641802020-10-012020-10-3100007641802021-01-012021-01-3100007641802021-03-012021-03-3100007641802021-05-012021-05-3100007641802021-06-012021-06-300000764180srt:ScenarioForecastMembermo:SteMichelleTransactionMember2021-07-012021-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                    
Commission File Number 1-08940
Altria Group, Inc.
(Exact name of registrant as specified in its charter)
Virginia   13-3260245
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer
Identification No.)
6601 West Broad Street, Richmond, Virginia 23230
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code (804) 274-2200 
 Former name, former address and former fiscal year, if changed since last report
Securities registered pursuant to Section 12(b) of the Act:
               Title of each class               
Trading Symbols Name of each exchange on which registered
Common Stock, $0.33 1/3 par value
MO New York Stock Exchange
1.000% Notes due 2023
MO23A New York Stock Exchange
1.700% Notes due 2025
MO25 New York Stock Exchange
2.200% Notes due 2027
MO27 New York Stock Exchange
3.125% Notes due 2031
MO31 New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   þ     No   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes   þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   þ Accelerated filer
Non-accelerated filer   Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes    No   þ
At July 20, 2021, there were 1,844,077,897 shares outstanding of the registrant’s common stock, par value $0.33 1/3 per share.




ALTRIA GROUP, INC.
TABLE OF CONTENTS
 
    Page No.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
3
5
6
7
8
9
Item 2.
Item 3.
Item 4.
PART II - OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.
Signature

2

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)
______________________________
 
June 30, 2021 December 31, 2020
Assets
Cash and cash equivalents $ 1,877  $ 4,945 
Receivables 132  137 
Inventories:
Leaf tobacco 642  844 
Other raw materials 177  200 
Work in process 450  502 
Finished product 525  420 
1,794  1,966 
Other current assets 381  69 
Total current assets 4,184  7,117 
Property, plant and equipment, at cost 5,103  5,150 
Less accumulated depreciation 3,170  3,138 
1,933  2,012 
Goodwill 5,177  5,177 
Other intangible assets, net 12,580  12,615 
Investments in equity securities ($1,775 million and $1,868 million at June 30, 2021 and December 31, 2020, respectively, measured at fair value)
19,831  19,529 
Other assets 683  964 
Total Assets $ 44,388  $ 47,414 
 
See notes to condensed consolidated financial statements.
3

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share and per share data)
(Unaudited)
________________________________________________
 
June 30, 2021 December 31, 2020
Liabilities
Current portion of long-term debt $   $ 1,500 
Accounts payable 260  380 
Accrued liabilities:
Marketing 684  523 
Settlement charges 1,980  3,564 
Other 1,266  1,494 
Dividends payable 1,593  1,602 
Total current liabilities 5,783  9,063 
Long-term debt 28,241  27,971 
Deferred income taxes 4,779  4,532 
Accrued pension costs 413  551 
Accrued postretirement health care costs 1,515  1,951 
Other liabilities 357  381 
Total liabilities 41,088  44,449 
Contingencies (Note 11)
Redeemable noncontrolling interest 41  40 
Stockholders’ Equity
Common stock, par value $0.33 1/3 per share
(2,805,961,317 shares issued)
935  935 
Additional paid-in capital 5,840  5,910 
Earnings reinvested in the business 35,065  34,679 
Accumulated other comprehensive losses (3,602) (4,341)
Cost of repurchased stock
(960,673,950 shares at June 30, 2021 and
947,542,152 shares at December 31, 2020)
(34,981) (34,344)
Total stockholders’ equity attributable to Altria
3,257  2,839 
Noncontrolling interests 2  86 
Total stockholders’ equity
3,259  2,925 
Total Liabilities and Stockholders’ Equity
$ 44,388  $ 47,414 
See notes to condensed consolidated financial statements.

4

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
(Unaudited)
_____________________________________ 
For the Six Months Ended June 30, For the Three Months Ended June 30,
2021 2020 2021 2020
Net revenues $ 12,972  $ 12,726  $ 6,936  $ 6,367 
Cost of sales 3,490  3,948  1,882  1,775 
Excise taxes on products 2,478  2,618  1,322  1,305 
Gross profit 7,004  6,160  3,732  3,287 
Marketing, administration and research costs 1,128  1,028  546  491 
Operating income 5,876  5,132  3,186  2,796 
Interest and other debt expense, net 603  583  295  308 
Loss on early extinguishment of debt 649  —    — 
Net periodic benefit income, excluding service cost (89) (55) (46) (28)
(Income) losses from equity investments (126) (166) (75) (9)
(Gain) loss on Cronos-related financial instruments (7) 97  103  (40)
Earnings before income taxes 4,846  4,673  2,909  2,565 
Provision for income taxes 1,275  1,185  759  627 
Net earnings 3,571  3,488  2,150  1,938 
Net (earnings) losses attributable to noncontrolling interests 2  (1)
Net earnings attributable to Altria $ 3,573  $ 3,495  $ 2,149  $ 1,943 
Per share data:
Basic and diluted earnings per share attributable to Altria $ 1.93  $ 1.88  $ 1.16  $ 1.04 
See notes to condensed consolidated financial statements.

5

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings
(in millions of dollars)
(Unaudited)
_____________________
For the Six Months Ended June 30, For the Three Months Ended June 30,
2021 2020 2021 2020
Net earnings $ 3,571  $ 3,488  $ 2,150  $ 1,938 
Other comprehensive earnings (losses), net of deferred income taxes:
Benefit plans 377  42  349  21 
ABI 334  (913) (183) (1,211)
Currency translation adjustments and other 28  (39) 6  (51)
Other comprehensive earnings (losses), net of deferred
income taxes
739  (910) 172  (1,241)
Comprehensive earnings (losses) 4,310  2,578  2,322  697 
Comprehensive (earnings) losses attributable to noncontrolling interests 2  (1)
Comprehensive earnings (losses) attributable to Altria $ 4,312  $ 2,585  $ 2,321  $ 702 
See notes to condensed consolidated financial statements.
6

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
for the Six Months Ended June 30, 2021 and 2020
(in millions of dollars, except per share data)
(Unaudited)
_______________________________________
 
  Attributable to Altria    
  Common
Stock
Additional
Paid-in
Capital
Earnings
Reinvested
in the
Business
Accumulated
Other
Comprehensive
Losses
Cost of
Repurchased
Stock
Non-
controlling
Interests
Total
Stockholders’
Equity
Balances, December 31, 2020 $ 935  $ 5,910  $ 34,679  $ (4,341) $ (34,344) $ 86  $ 2,925 
Net earnings (losses) (1)
    3,573      (4) 3,569 
Other comprehensive earnings (losses), net of deferred income taxes
      739      739 
Stock award activity   7      13    20 
Cash dividends declared ($1.72 per share)
    (3,187)       (3,187)
Repurchases of common stock         (650)   (650)
Other (2)
  (77)       (80) (157)
Balances, June 30, 2021 $ 935  $ 5,840  $ 35,065  $ (3,602) $ (34,981) $ 2  $ 3,259 


  Attributable to Altria    
  Common
Stock
Additional
Paid-in
Capital
Earnings
Reinvested
in the
Business
Accumulated
Other
Comprehensive
Losses
Cost of
Repurchased
Stock
Non-
controlling
Interests
Total
Stockholders’
Equity
Balances, December 31, 2019 $ 935  $ 5,970  $ 36,539  $ (2,864) $ (34,358) $ 97  $ 6,319 
Net earnings (losses) (1)
—  —  3,495  —  —  (8) 3,487 
Other comprehensive earnings (losses), net of deferred income taxes
—  —  —  (910) —  —  (910)
Stock award activity
—  (6) —  —  13  — 
Cash dividends declared ($1.68 per share)
—  —  (3,126) —  —  —  (3,126)
Other —  —  —  —  — 
Balances, June 30, 2020 $ 935  $ 5,964  $ 36,908  $ (3,774) $ (34,345) $ 98  $ 5,786 

(1)Amounts attributable to noncontrolling interests for the six months ended June 30, 2021 and 2020 exclude net earnings of $2 million and $1 million, respectively, due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars, which is reported in the mezzanine equity section on the condensed consolidated balance sheets.
(2) Represents the purchase of the remaining noncontrolling interests in Helix. For additional information, see Note 1. Background and Basis of Presentation.


See notes to condensed consolidated financial statements.


7

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
for the Three Months Ended June 30, 2021 and 2020
(in millions of dollars, except per share data)
(Unaudited)
_______________________________________ 

  Attributable to Altria    
  Common
Stock
Additional
Paid-in
Capital
Earnings
Reinvested
in the
Business
Accumulated
Other
Comprehensive
Losses
Cost of
Repurchased
Stock
Non-
controlling
Interests
Total
Stockholders’
Equity
Balances, March 31, 2021 $ 935  $ 5,905  $ 34,507  $ (3,774) $ (34,660) $ 82  $ 2,995 
Net earnings (losses) (1)
    2,149        2,149 
Other comprehensive earnings (losses), net of deferred income taxes
      172      172 
Stock award activity
  12      4    16 
Cash dividends declared $0.86 per share)
    (1,591)       (1,591)
Repurchases of common stock         (325)   (325)
Other (2)
  (77)       (80) (157)
Balances, June 30, 2021
$ 935  $ 5,840  $ 35,065  $ (3,602) $ (34,981) $ 2  $ 3,259 


  Attributable to Altria    
  Common
Stock
Additional
Paid-in
Capital
Earnings
Reinvested
in the
Business
Accumulated
Other
Comprehensive
Losses
Cost of
Repurchased
Stock
Non-
controlling
Interests
Total
Stockholders’
Equity
Balances, March 31, 2020 $ 935  $ 5,959  $ 36,528  $ (2,533) $ (34,346) $ 94  $ 6,637 
Net earnings (losses) —  —  1,943  —  —  (5) 1,938 
Other comprehensive earnings (losses), net of deferred income taxes
—  —  —  (1,241) —  —  (1,241)
Stock award activity
—  —  —  — 
Cash dividends declared ($0.84 per share)
—  —  (1,563) —  —  —  (1,563)
Other —  —  —  —  — 
Balances, June 30, 2020 $ 935  $ 5,964  $ 36,908  $ (3,774) $ (34,345) $ 98  $ 5,786 

(1) Amounts attributable to noncontrolling interests for the three months ended June 30, 2021 exclude net earnings of $1 million due to the redeemable noncontrolling interest related to Stag’s Leap Wine Cellars, which is reported in the mezzanine equity section on the condensed consolidated balance sheets.
(2) Represents the purchase of the remaining noncontrolling interests in Helix. For additional information, see Note 1. Background and Basis of Presentation.

See notes to condensed consolidated financial statements.


8

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of dollars)
(Unaudited)
_____________________
For the Six Months Ended June 30, 2021 2020
Cash Provided by (Used in) Operating Activities
Net earnings $ 3,571  $ 3,488 
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization 128  130 
Deferred income tax provision (benefit) 64  (4)
(Income) losses from equity investments (126) (166)
Dividends from ABI 119  108 
(Gain) loss on Cronos-related financial instruments (7) 97 
Loss on early extinguishment of debt 649  — 
Cash effects of changes:
Receivables 5  12 
Inventories 172  87 
Accounts payable (113) (47)
Income taxes (171) 1,049 
Accrued liabilities and other current assets 3  1,028 
Accrued settlement charges (1,584) (1,275)
Pension plan contributions (6) (11)
Pension provisions and postretirement, net (73) (38)
Other, net (1)
48  488 
Net cash provided by (used in) operating activities 2,679  4,946 
Cash Provided by (Used in) Investing Activities
Capital expenditures (53) (106)
Other, net 44  43 
Net cash provided by (used in) investing activities $ (9) $ (63)
(1) 2020 primarily reflects inventory-related amounts associated with the Wine Business Strategic Reset. For further discussion, see Note 8. Segment Reporting.
See notes to condensed consolidated financial statements.

9

Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(in millions of dollars)
(Unaudited)
_____________________
For the Six Months Ended June 30, 2021 2020
Cash Provided by (Used in) Financing Activities
Proceeds from short-term borrowings $   $ 3,000 
Repayment of short-term borrowings   (3,000)
Long-term debt issued 5,472  1,993 
Long-term debt repaid (6,542) (1,000)
Repurchases of common stock (650) — 
Dividends paid on common stock (3,196) (3,126)
Premiums and fees related to early extinguishment of debt (623) — 
Other, net (210) (16)
Net cash provided by (used in) financing activities (5,749) (2,149)
Cash, cash equivalents and restricted cash:
Increase (decrease) (3,079) 2,734 
Balance at beginning of period 5,006  2,160 
Balance at end of period $ 1,927  $ 4,894 
The following table provides a reconciliation of cash, cash equivalents and restricted cash to the amounts reported on Altria’s condensed consolidated balance sheets:
At June 30, 2021 At December 31, 2020
Cash and cash equivalents $ 1,877  $ 4,945 
Restricted cash included in other current assets (1)
5 
Restricted cash included in other assets (1)
45  60 
Cash, cash equivalents and restricted cash $ 1,927  $ 5,006 
(1)Restricted cash consisted of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 11. Contingencies.

See notes to condensed consolidated financial statements.
10


Altria Group, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Background and Basis of Presentation
When used in these notes, the term Altria,” refers to Altria Group, Inc. and its subsidiaries, unless the context requires otherwise.
Background: At June 30, 2021, Altria’s wholly owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco and is a wholly owned subsidiary of PM USA; UST LLC (“UST”), which through its wholly owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (“USSTC”) and Ste. Michelle Wine Estates Ltd. (“Ste. Michelle”), is engaged in the manufacture and sale of moist smokeless tobacco products (“MST”), snus products and wine; Helix Innovations LLC (“Helix”), which operates in the United States and Canada, and Helix Innovations GmbH and its subsidiaries (“Helix ROW”), which operate internationally in the rest-of-world, are engaged in the manufacture and sale of on! oral nicotine pouches; and Philip Morris Capital Corporation (“PMCC”), which maintains a portfolio of finance assets, substantially all of which are leveraged leases.
Altria owns 100% of the global on! business as a result of transactions in December 2020 and April 2021 to purchase the remaining 20% interest in (i) Helix ROW and (ii) Helix, respectively. The total purchase price of the December 2020 and April 2021 transactions was approximately $250 million.
Other Altria wholly owned subsidiaries included Altria Group Distribution Company, which provides sales and distribution services to certain Altria operating subsidiaries, and Altria Client Services LLC, which provides various support services in areas such as legal, regulatory, consumer engagement, finance, human resources and external affairs to Altria and its subsidiaries. Altria’s access to the operating cash flows of its wholly owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries. At June 30, 2021, Altria’s significant wholly owned subsidiaries were not limited by contractual obligations in their ability to pay cash dividends or make other distributions with respect to their equity interests.
At June 30, 2021, Altria’s investments in equity securities consisted of Anheuser-Busch InBev SA/NV (“ABI”), Cronos Group Inc. (“Cronos”) and JUUL Labs, Inc. (“JUUL”). Altria accounts for its investments in ABI and Cronos under the equity method of accounting using a one-quarter lag. Altria accounts for its equity investment in JUUL under the fair value option.
For further discussion of Altria’s investments in equity securities, see Note 3. Investments in Equity Securities.
On July 8, 2021, UST entered into a Share Purchase Agreement pursuant to which UST agreed to sell its subsidiary, International Wine & Spirits Ltd. (“IWS”), which includes Ste. Michelle. For further discussion, see Note 13. Subsequent Event.
Share Repurchases: In July 2019, Altria’s Board of Directors (the “Board of Directors” or “Board”) authorized a $1.0 billion share repurchase program. In April 2020, the Board rescinded the $500 million remaining in this program as part of Altria’s efforts to enhance its liquidity position in response to the COVID-19 pandemic. Altria did not repurchase any shares in 2020.
In January 2021, the Board authorized a new $2.0 billion share repurchase program. At June 30, 2021, Altria had $1,350 million remaining in this program. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of the Board.
Altria’s share repurchase activity for the six and three months ended June 30, 2021 was as follows:
(in millions, except per share data) For the Six Months Ended June 30, 2021 For the Three Months Ended June 30, 2021
Total number of shares repurchased
13.5  6.6 
Aggregate cost of shares repurchased
$ 650  $ 325 
Average price per share of shares repurchased
$ 48.09  $ 49.21 
Basis of Presentation: The interim condensed consolidated financial statements of Altria are unaudited. It is the opinion of Altria’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected in the interim condensed consolidated financial statements. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year.
11

Certain immaterial prior year amounts have been reclassified to conform with the current year’s presentation.
These statements should be read in conjunction with Altria’s audited consolidated financial statements and related notes, which appear in Altria’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”).
On January 1, 2021, Altria adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). This guidance removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The adoption of ASU No. 2019-12 did not have a material impact on Altria’s condensed consolidated financial statements.
Additionally, on January 1, 2021, Altria adopted ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU No. 2020-01”). This guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The adoption of ASU No. 2020-01 did not have a material impact on Altria’s condensed consolidated financial statements.
For a description of issued accounting guidance applicable to, but not yet adopted by, Altria, see Note 12. New Accounting Guidance Not Yet Adopted.

Note 2. Revenues from Contracts with Customers
Altria disaggregates net revenues based on product type. For further discussion, see Note 8. Segment Reporting.
A majority of Altria’s businesses offer cash discounts to customers for prompt payment and calculate cash discounts as a percentage of the list price based on historical experience and agreed-upon payment terms. Beginning in the first quarter of 2021, USSTC began calculating cash discounts as a flat rate per unit, based on agreed-upon payment terms. Altria’s businesses record receivables net of the cash discounts on Altria’s condensed consolidated balance sheets.
Altria’s businesses that receive payments in advance of product shipment record such payments as deferred revenue. These payments are included in other accrued liabilities on Altria’s condensed consolidated balance sheets until control of such products is obtained by the customer. Deferred revenue was $339 million and $301 million at June 30, 2021 and December 31, 2020, respectively. When cash is received in advance of product shipment, Altria’s businesses satisfy their performance obligations within three days of receiving payment. At June 30, 2021 and December 31, 2020, there were no differences between amounts recorded as deferred revenue and amounts subsequently recognized as revenue.
Receivables were $132 million and $137 million at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021 and December 31, 2020, there were no expected differences between amounts recorded and subsequently received, and Altria’s businesses did not record an allowance for doubtful accounts against these receivables.
Altria’s businesses record an allowance for returned goods, which is included in other accrued liabilities on Altria’s condensed consolidated balance sheets. While all of Altria’s tobacco operating companies sell tobacco products with dates relative to freshness as printed on product packaging, it is USSTC’s policy to accept authorized sales returns from its customers for products that have passed such dates due to the limited shelf life of USSTC’s MST and snus products. Altria’s businesses record estimated sales returns, which are based principally on historical volume and return rates, as a reduction to revenues. Actual sales returns will differ from estimated sales returns to the extent actual results differ from estimated assumptions. Altria’s businesses reflect differences between actual and estimated sales returns in the period in which the actual amounts become known. These differences, if any, have not had a material impact on Altria’s condensed consolidated financial statements. All returned goods are destroyed upon return and not included in inventory. Consequently, Altria’s businesses do not record an asset for their right to recover goods from customers upon return.
Sales incentives include variable payments related to goods sold by Altria’s businesses. Altria’s businesses include estimates of variable consideration as a reduction to revenues upon shipment of goods to customers. The sales incentives that require significant estimates and judgments are as follows:
Price promotion payments- Altria’s businesses make price promotion payments, substantially all of which are made to their retail partners, to incent the promotion of certain product offerings in select geographic areas.
Wholesale and retail participation payments- Altria’s businesses make payments to their wholesale and retail partners to incent merchandising and sharing of sales data in accordance with each business’s trade agreements.
These estimates primarily include estimated wholesale to retail sales volume and historical acceptance rates. Actual payments will differ from estimated payments to the extent actual results differ from estimated assumptions. Differences between actual and estimated payments are reflected in the period such information becomes available. These differences, if any, have not had a material impact on Altria’s condensed consolidated financial statements.
12



Note 3. Investments in Equity Securities
The carrying amount of Altria’s investments consisted of the following:
(in millions) June 30, 2021 December 31, 2020
ABI $ 17,185  $ 16,651 
JUUL
1,605  1,705 
Cronos (1)
1,041  1,173 
Total
$ 19,831  $ 19,529 
(1) June 30, 2021 included Altria’s equity method investment in Cronos ($871 million), the Cronos warrant ($150 million) and the Fixed-price Preemptive Rights ($20 million), (collectively, “Investment in Cronos”). The Investment in Cronos at December 31, 2020 included Altria’s equity method investment in Cronos ($1,010 million), the Cronos warrant ($139 million) and the Fixed-price Preemptive Rights ($24 million). See below for further discussion.
Income (losses) from equity investments accounted for under the equity method of accounting and fair value option consisted of the following:
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020
ABI $ 392  $ 112  $ 74  $ (22)
Cronos (166) 54  (99) 31 
Income (losses) from investments under equity method of accounting 226  166  $ (25) $
JUUL (100) —  100  — 
Income (losses) from equity investments $ 126  $ 166  $ 75  $
Investment in ABI
At June 30, 2021, Altria had a 10.0% ownership interest in ABI, consisting of 185 million restricted shares of ABI (the “Restricted Shares”) and 12 million ordinary shares of ABI. The Restricted Shares:
are unlisted and not admitted to trading on any stock exchange;
are subject to a five-year lock-up (subject to limited exceptions) ending October 10, 2021;
are convertible into ordinary shares of ABI on a one-for-one basis after the end of this five-year lock-up period;
rank equally with ordinary shares of ABI with regards to dividends and voting rights; and
have director nomination rights with respect to ABI.
Altria accounts for its investment in ABI under the equity method of accounting because Altria has the ability to exercise significant influence over the operating and financial policies of ABI, including having active representation on ABI’s board of directors and certain ABI board committees. Through this representation, Altria participates in ABI policy making processes.
Altria reports its share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for Altria to record them in the concurrent period.
The fair value of Altria’s equity investment in ABI is based on (i) unadjusted quoted prices in active markets for ABI’s ordinary shares and was classified in Level 1 of the fair value hierarchy and (ii) observable inputs other than Level 1 prices, such as quoted prices for similar assets for the Restricted Shares, and was classified in Level 2 of the fair value hierarchy. Altria may, in certain instances, pledge or otherwise grant a security interest in all or part of its Restricted Shares. If the pledgee or security interest holder forecloses on the Restricted Shares, the relevant Restricted Shares will be automatically converted, one-for-one, into ordinary shares. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share.
The fair value of Altria’s equity investment in ABI at June 30, 2021 and December 31, 2020 was $14.2 billion (carrying value of $17.2 billion) and $13.8 billion (carrying value of $16.7 billion), respectively, which was less than its carrying value by approximately 17% at the end of both periods. In October 2019, the fair value of Altria’s equity investment in ABI declined below its carrying value and has not recovered. Altria has evaluated the factors related to the fair value decline, including the impact on the fair value of ABI’s shares during the COVID-19 pandemic, which has negatively impacted ABI’s business. Altria has evaluated the duration and magnitude of the fair value decline at June 30, 2021, ABI’s financial
13

condition and near-term prospects, and Altria’s intent and ability to hold its investment in ABI until recovery. Altria concluded, both at June 30, 2021 and December 31, 2020, that the decline in fair value of its investment in ABI below its carrying value was temporary and, therefore, no impairment was recorded.
Investment in JUUL
In December 2018, Altria made an investment in JUUL and received a 35% economic interest in JUUL through non-voting shares, which were convertible at Altria’s election into voting shares (“Share Conversion”), and a security convertible into additional non-voting or voting shares, as applicable, upon settlement or exercise of certain JUUL convertible securities (the “JUUL Transaction”).
Altria received a broad preemptive right to purchase JUUL shares, exercisable each quarter upon dilution, to maintain its ownership percentage and is subject to a standstill restriction under which it may not acquire additional JUUL shares above its 35% interest. Furthermore, Altria agreed not to sell or transfer any of its JUUL shares until December 20, 2024.
On April 1, 2020, the U.S. Federal Trade Commission (“FTC”) issued an administrative complaint challenging Altria’s investment in JUUL. For further discussion, see Note 11. Contingencies - Antitrust Litigation.
In November 2020, Altria exercised its rights to convert its non-voting JUUL shares into voting shares. Altria does not currently intend to exercise its additional governance rights obtained upon Share Conversion, including the right to elect directors to JUUL’s board or to vote its JUUL shares other than as a passive investor, pending the outcome of the FTC administrative complaint. At June 30, 2021, Altria had a 35% ownership interest in JUUL, consisting of 42 million voting shares.
Prior to Share Conversion, Altria accounted for its investment in JUUL as an investment in an equity security. Since the JUUL shares do not have a readily determinable fair value, Altria elected to measure its investment in JUUL at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. There were no upward or downward adjustments to the carrying value of Altria’s investment in JUUL resulting from observable price changes in orderly transactions since the JUUL Transaction through the date of Share Conversion. In addition, prior to Share Conversion, Altria reviewed its investment in JUUL for impairment by performing a qualitative assessment of impairment indicators on a quarterly basis in connection with the preparation of its financial statements. If this qualitative assessment indicated that Altria’s investment in JUUL may be impaired, a quantitative assessment was performed. If the quantitative assessment indicated the estimated fair value of the investment was less than its carrying value, the investment was written down to its fair value. During the six months ended June 30, 2020, Altria did not record an impairment charge on its investment in JUUL.
Following Share Conversion in the fourth quarter of 2020, Altria elected to account for its equity method investment in JUUL under the fair value option. Under this option, Altria’s condensed consolidated statements of earnings include any cash dividends received from its investment in JUUL and any changes in the estimated fair value of its investment, which is calculated quarterly. Altria believes the fair value option provides quarterly transparency to investors as to the fair market value of Altria’s investment in JUUL, given the changes and volatility in the e-vapor category since Altria’s initial investment, as well as the lack of publicly available information regarding JUUL’s business or a market-derived valuation.
For the six and three months ended June 30, 2021, Altria recorded a non-cash, pre-tax unrealized loss of $100 million and a non-cash, pre-tax unrealized gain of $100 million, respectively, as a result of changes in the estimated fair value of its investment in JUUL. There were no material changes to the significant assumptions used in the valuations, as described below, during the six and three months ended June 30, 2021.
Altria uses an income approach to estimate the fair value of its investment in JUUL. The income approach reflects the discounting of future cash flows for the U.S. and international markets at a rate of return that incorporates the risk-free rate for the use of those funds, the expected rate of inflation and the risks associated with realizing future cash flows. Future cash flows were based on a range of scenarios that consider various potential regulatory and market outcomes.
In determining the estimated fair value of its investment in JUUL, as of June 30, 2021 and December 31, 2020, Altria made various judgments, estimates and assumptions, the most significant of which were sales volume, operating margins, discount rates and perpetual growth rates. All significant inputs used in the valuation are classified in Level 3 of the fair value hierarchy. Additionally, in determining these significant assumptions, Altria made judgments regarding the (i) likelihood and extent of various potential regulatory actions and the continued adverse public perception impacting the e-vapor category and specifically JUUL, (ii) risk created by the number and types of legal cases pending against JUUL and (iii) expectations for the future state of the e-vapor category, including competitive dynamics.
14

The following table provides a reconciliation of the beginning and ending balance of the JUUL investment, which is classified in Level 3 of the fair value hierarchy:
Investment
(in millions) Balance
Balance at December 31, 2020 $ 1,705 
Unrealized gains (losses) included in income (losses) from equity investments (100)
Balance at June 30, 2021 $ 1,605 
Investment in Cronos
At June 30, 2021, Altria had a 42.1% ownership interest in Cronos, consisting of 156.6 million shares, which Altria accounts for under the equity method of accounting. Altria’s ownership percentage decreased from 43.5% at December 31, 2020 due to the issuance of additional shares by Cronos. Altria reports its share of Cronos’s results using a one-quarter lag because Cronos’s results are not available in time for Altria to record them in the concurrent period.
As part of its Investment in Cronos, at June 30, 2021, Altria owned:
anti-dilution protections to purchase Cronos common shares, exercisable each quarter upon dilution, to maintain its ownership percentage. Certain of the anti-dilution protections provide Altria the ability to purchase additional Cronos common shares at a per share exercise price of Canadian dollar (“CAD”) $16.25 upon the occurrence of specified events (“Fixed-price Preemptive Rights”). Based on Altria’s assumptions as of June 30, 2021, Altria estimates the Fixed-price Preemptive Rights allows Altria to purchase up to an additional approximately 14 million common shares of Cronos; and
a warrant providing Altria the ability to purchase an additional approximate 10% of common shares of Cronos (approximately 83 million common shares at June 30, 2021) at a per share exercise price of CAD $19.00, which expires on March 8, 2023.
If exercised in full, the exercise prices for the warrant and Fixed-price Preemptive Rights are approximately CAD $1.6 billion and CAD $0.2 billion, respectively, (approximately USD $1.3 billion and $0.2 billion, respectively, based on the CAD to USD exchange rate on July 26, 2021). At June 30, 2021, upon full exercise of the Fixed-price Preemptive Rights, to the extent such rights become available, and the warrant, Altria would own approximately 53% of the outstanding common shares of Cronos.
For a discussion of derivatives related to the Investment in Cronos, including Altria’s accounting for changes in the fair value of these derivatives, see Note 4. Financial Instruments.
The fair value of Altria’s equity method investment in Cronos is based on unadjusted quoted prices in active markets for Cronos’s common shares and was classified in Level 1 of the fair value hierarchy. The fair value of Altria’s equity method investment in Cronos at June 30, 2021 and December 31, 2020 was $1.3 billion (carrying value of $0.9 billion) and $1.1 billion (carrying value of $1.0 billion), respectively, which exceeded its carrying value by approximately 55% and 8% at June 30, 2021 and December 31, 2020, respectively.

Note 4. Financial Instruments
Altria enters into derivative financial instruments to mitigate the potential impact of certain market risks, including foreign currency exchange rate risk. Altria uses various types of derivative financial instruments, including forward contracts, options and swaps. Altria does not enter into or hold derivative financial instruments for trading or speculative purposes.
Altria’s investment in ABI, whose functional currency is the Euro, exposes Altria to foreign currency exchange risk on the carrying value of its investment. To manage this risk, Altria designates certain foreign exchange contracts, including cross-currency swap contracts and forward contracts (collectively, “foreign currency contracts”), and Euro denominated unsecured long-term notes (“foreign currency denominated debt”) as net investment hedges of Altria’s investment in ABI.
In May 2021, all outstanding foreign currency contracts matured. When Altria has foreign currency contracts in effect, counterparties are domestic and international financial institutions. Under these contracts, Altria is exposed to potential losses due to non-performance by these counterparties. Altria manages its credit risk by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure Altria has with each counterparty and monitoring the financial condition of each counterparty. The counterparty agreements contain provisions that require Altria to maintain an investment grade credit rating. In the event Altria’s credit rating falls below investment grade, counterparties to Altria’s foreign currency contracts can require Altria to post collateral. No collateral was received or posted related to derivative assets and liabilities at December 31, 2020.
15

The following table provides (i) the aggregate notional amounts of foreign currency contracts and (ii) the aggregate carrying value and fair value of foreign currency denominated debt:
(in millions) June 30, 2021 December 31, 2020
Foreign currency contracts (notional amounts) $   $ 1,066 
Foreign currency denominated debt
Carrying value 5,021  5,171 
Fair value 5,431  5,687 
Altria’s estimates of the fair values of its foreign currency contracts are determined using valuation models with significant inputs that are readily available in public markets, or can be derived from observable market transactions, and therefore are classified in Level 2 of the fair value hierarchy. An adjustment for credit risk and non-performance risk is included in the fair values of foreign currency contracts.
The following table provides the aggregate carrying value and fair value of Altria’s total long-term debt:
(in millions) June 30, 2021 December 31, 2020
Carrying value $ 28,241  $ 29,471 
Fair value 31,360  34,682 
Altria’s estimate of the fair value of its total long-term debt is based on observable market information derived from a third-party pricing source and is classified in Level 2 of the fair value hierarchy.
The Fixed-price Preemptive Rights and Cronos warrant, which are further discussed in Note 3. Investments in Equity Securities, are derivative financial instruments, which are required to be recorded at fair value. The fair values of the Fixed-price Preemptive Rights and Cronos warrant are estimated using Black-Scholes option-pricing models, adjusted for observable inputs (which are classified in Level 1 of the fair value hierarchy), including share price, and unobservable inputs, including probability factors and weighting of expected life, volatility levels and risk-free interest rates (which are classified in Level 3 of the fair value hierarchy) based on the following assumptions at:
Fixed-price Preemptive Rights Cronos Warrant
June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020
Share price (1)
C$10.68 C$8.84 C$10.68 C$8.84
Expected life (2)
1.24 years 1.05 years 1.68 years 2.18 years
Expected volatility (3)
75.22% 80.68% 75.22% 80.68%
Risk-free interest rate (4)(5)
0.29% 0.13% 0.38% 0.21%
Expected dividend yield (6)
—% —% —% —%
(1) Based on the closing market price for Cronos common stock on the Toronto Stock Exchange on the date indicated.
(2) Based on the weighted-average expected life of the Fixed-price Preemptive Rights (with a range from approximately 0.25 year to 4.25 years at June 30, 2021 and 0.25 year to 5 years at December 31, 2020) and the March 8, 2023 expiration date of the Cronos warrant.
(3) Based on a blend of historical volatility of the underlying equity security and implied volatility from traded options on the underlying equity security at June 30, 2021. Based on a blend of historical volatility levels of the underlying equity security and peer companies at December 31, 2020.
(4) Based on the implied yield currently available on Canadian Treasury zero coupon issues (with a range from approximately 0.15% to 0.85% at June 30, 2021 and 0.06% to 0.39% at December 31, 2020) weighted for the remaining expected life of the Fixed-price Preemptive Rights.
(5) Based on the implied yield currently available on Canadian Treasury zero coupon issues and the expected life of the Cronos warrant.
(6) Based on Cronos’s expected dividend payments.
16

The following table provides a reconciliation of the beginning and ending balance of the Fixed-price Preemptive Rights and Cronos warrant, which are classified in Level 3 of the fair value hierarchy:
(in millions)
Balance at December 31, 2019 $ 303 
Pre-tax earnings (losses) recognized in net earnings (140)
Balance at December 31, 2020 163 
Pre-tax earnings (losses) recognized in net earnings 7 
Balance at June 30, 2021 $ 170 
Altria elects to record the gross assets and liabilities of derivative financial instruments executed with the same counterparty on its condensed consolidated balance sheets. The fair values of Altria’s derivative financial instruments on a gross basis included on the condensed consolidated balance sheets were as follows:
Fair Value of Assets Fair Value of Liabilities
(in millions)
Balance Sheet Classification June 30, 2021 December 31, 2020 Balance Sheet Classification June 30, 2021 December 31, 2020
Derivatives designated as hedging instruments:
    Foreign currency contracts
Other current assets
$   $ — 
Other accrued liabilities
$   $ 87 
    Foreign currency contracts
Other assets
  — 
Other liabilities
  — 
Total
$   $ —  $   $ 87 
Derivatives not designated as hedging instruments:
Cronos warrant
Investments in equity securities
$ 150  $ 139 
Fixed-price Preemptive Rights
Investments in equity securities
20  24 
Total
$ 170  $ 163 
Total derivatives
$ 170  $ 163  $   $ 87 
Altria records in its condensed consolidated statements of earnings any changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant as gains or losses on Cronos-related financial instruments in the periods in which the changes occur. For the six and three months ended June 30, 2021 and 2020, Altria recorded non-cash, pre-tax unrealized gains (losses), representing the changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant, as follows:
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020
Fixed-price Preemptive Rights $ (4) $ (29) $ (18) $
Cronos warrant 11  (68) (85) 34 
Total $ 7  $ (97) $ (103) $ 40 

17

Net Investment Hedging
The pre-tax effects of Altria’s net investment hedges on accumulated other comprehensive losses and the condensed consolidated statements of earnings were as follows:
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses Gain (Loss) Recognized in
Net Earnings
Gain (Loss) Recognized in Accumulated Other Comprehensive Losses Gain (Loss) Recognized in
Net Earnings
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020 2021 2020 2021 2020
Foreign currency contracts $ 16  $ 38  $ 7  $ 25  $ (19) $ (18) $ 2  $ 11 
Foreign currency denominated debt 152  (9)   —  (54) (86)   — 
Total $ 168  $ 29  $ 7  $ 25  $ (73) $ (104) $ 2  $ 11 
The changes in the fair value of the foreign currency contracts and in the carrying value of the foreign currency denominated debt due to changes in the Euro to USD exchange rate were recognized in accumulated other comprehensive losses related to ABI. Gains on the foreign currency contracts arising from components excluded from effectiveness testing were recognized in interest and other debt expense, net in the condensed consolidated statements of earnings based on an amortization approach.

Note 5. Benefit Plans
Components of Net Periodic Benefit (Income) Cost
Net periodic benefit (income) cost consisted of the following:
Pension Postretirement Pension Postretirement
For the Six Months Ended June 30, For the Three Months Ended June 30,
 (in millions) 2021 2020 2021 2020 2021 2020 2021 2020
Service cost $ 34  $ 37  $ 10  $ $ 17  $ 18  $ 5  $
Interest cost 93  126  21  30  47  63  10  15 
Expected return on plan assets
(262) (251) (8) (7) (131) (125) (4) (4)
Amortization:
Net loss 66  53  14  33  26  7 
Prior service cost (credit)
2  (15) (15) 1  (9) (8)
Net periodic benefit
(income) cost
$ (67) $ (33) $ 22  $ 23  $ (33) $ (17) $ 9  $ 11 
Employer Contributions
Altria makes contributions to the pension plans to the extent that the contributions are tax deductible and pays benefits that relate to plans for salaried employees that cannot be funded under Internal Revenue Service regulations. Altria made employer contributions of $6 million to its pension plans and did not make any contributions to its postretirement plans during the six months ended June 30, 2021. Currently, Altria anticipates making additional employer contributions to its pension and postretirement plans of up to approximately $25 million and $60 million, respectively, in 2021. However, the foregoing estimates of 2021 contributions to the pension and postretirement plans are subject to change as a result of changes in tax and other benefit laws, changes in interest rates, as well as asset performance significantly above or below the assumed long-term rate of return for each respective plan.
During the second quarter of 2021, Altria announced several amendments to its salaried retiree healthcare plans, primarily changing its post-age 65 coverage to a private medicare marketplace. These amendments triggered a plan remeasurement as of May 31, 2021 and resulted in Altria recording a reduction of $432 million to its accrued postretirement health care costs liability and a corresponding reduction to its accumulated other comprehensive losses on its condensed consolidated balance sheet at June 30, 2021. Ongoing amortization has been adjusted to reflect these changes as of June 1, 2021 and is reflected in the amounts shown above.
18

Note 6. Earnings per Share
Basic and diluted earnings per share (“EPS”) were calculated using the following:
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020
Net earnings attributable to Altria $ 3,573  $ 3,495  $ 2,149  $ 1,943 
Less: Distributed and undistributed earnings attributable to share-based awards
(6) (5) (3) (3)
Earnings for basic and diluted EPS $ 3,567  $ 3,490  $ 2,146  $ 1,940 
Weighted-average shares for basic EPS 1,853  1,858  1,849  1,858 
Plus: contingently issuable performance stock units   — 
Weighted-average shares for diluted EPS 1,853  1,859  1,849  1,859 

Note 7. Other Comprehensive Earnings/Losses
The following tables set forth the changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria:
For the Six Months Ended June 30, 2021
(in millions) Benefit Plans ABI Currency
Translation
Adjustments and Other
Accumulated
Other
Comprehensive
Losses
Balances, December 31, 2020 $ (2,420) $ (1,938) $ 17  $ (4,341)
Other comprehensive earnings (losses) before reclassifications
432 
(1)
470  29  931 
Deferred income taxes (109) (103)   (212)
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes
323  367  29  719 
Amounts reclassified to net earnings 72  (42) (1) 29 
Deferred income taxes (18) 9    (9)
Amounts reclassified to net earnings, net of deferred income taxes 54  (33) (1) 20 
Other comprehensive earnings (losses), net of deferred income taxes
377  334 
(2)
28  739 
Balances, June 30, 2021 $ (2,043) $ (1,604) $ 45  $ (3,602)

19

For the Three Months Ended June 30, 2021
(in millions) Benefit Plans ABI Currency
Translation
Adjustments and Other
Accumulated
Other
Comprehensive
Losses
Balances, March 31, 2021 $ (2,392) $ (1,421) $ 39  $ (3,774)
Other comprehensive earnings (losses) before reclassifications
432 
(1)
(220) 7  219 
Deferred income taxes (109) 48    (61)
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes
323  (172) 7  158 
Amounts reclassified to net earnings (losses) 34  (14) (1) 19 
Deferred income taxes (8) 3    (5)
Amounts reclassified to net earnings (losses), net of deferred income taxes
26  (11) (1) 14 
Other comprehensive earnings (losses), net of deferred income taxes
349  (183)
(2)
6  172 
Balances, June 30, 2021 $ (2,043) $ (1,604) $ 45  $ (3,602)

For the Six Months Ended June 30, 2020
(in millions) Benefit Plans ABI Currency
Translation
Adjustments and Other
Accumulated
Other
Comprehensive
Losses
Balances, December 31, 2019 $ (2,192) $ (693) $ 21  $ (2,864)
Other comprehensive earnings (losses) before reclassifications
—  (1,140) (39) (1,179)
Deferred income taxes —  238  —  238 
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes
—  (902) (39) (941)
Amounts reclassified to net earnings 56  (15) —  41 
Deferred income taxes (14) —  (10)
Amounts reclassified to net earnings, net of deferred income taxes 42  (11) —  31 
Other comprehensive earnings (losses), net of deferred income taxes
42  (913)
(2)
(39) (910)
Balances, June 30, 2020 $ (2,150) $ (1,606) $ (18) $ (3,774)


20

For the Three Months Ended June 30, 2020
(in millions) Benefit Plans ABI Currency
Translation
Adjustments and Other
Accumulated
Other
Comprehensive
Losses
Balances, March 31, 2020 $ (2,171) $ (395) $ 33  $ (2,533)
Other comprehensive earnings (losses) before reclassifications
—  (1,528) (51) (1,579)
Deferred income taxes —  323  —  323 
Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes
—  (1,205) (51) (1,256)
Amounts reclassified to net earnings (losses) 28  (8) —  20 
Deferred income taxes (7) —  (5)
Amounts reclassified to net earnings (losses), net of deferred income taxes
21  (6) —  15 
Other comprehensive earnings (losses), net of deferred income taxes
21  (1,211)
(2)
(51) (1,241)
Balances, June 30, 2020 $ (2,150) $ (1,606) $ (18) $ (3,774)
(1) Reflects the remeasurement impact of salaried retiree healthcare plan amendments. For further discussion, see Note 5. Benefit Plans.
(2) Primarily reflects Altria’s share of ABI’s currency translation adjustments and the impact of Altria’s designated net investment hedges. For further discussion of designated net investment hedges, see Note 4. Financial Instruments.

The following table sets forth pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings:
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020
Benefit Plans: (1)
Net loss $ 85  $ 69  $ 42  $ 35 
Prior service cost/credit (13) (13) (8) (7)
72  56  34  28 
ABI (2)
(42) (15) (14) (8)
Currency Translation Adjustments and Other (2)
(1) —  (1) — 
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 29  $ 41  $ 19  $ 20 
(1) Amounts are included in net defined benefit plan costs. For further information related to defined benefit plans, see Note 5. Benefit Plans.
(2) Amounts are included in (income) losses from equity investments. For further information related to equity investments, see Note 3. Investments in Equity Securities.

Note 8. Segment Reporting
The products of Altria’s subsidiaries include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix; and wine produced and/or distributed by Ste. Michelle. The products and services of these subsidiaries constitute Altria’s reportable segments of smokeable products, oral tobacco products and wine. The financial services and the innovative tobacco products businesses, which include the heated tobacco business and Helix ROW, are included in all other.
Altria’s chief operating decision maker (the “CODM”) reviews operating companies income (loss) (“OCI”) to evaluate the performance of, and allocate resources to, the segments. OCI for the segments is defined as operating income before general corporate expenses and amortization of intangibles. Interest and other debt expense, net, net periodic benefit income/cost,
21

excluding service cost, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by the CODM.
Segment data were as follows:
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020
Net Revenues:
Smokeable products $ 11,300  $ 11,209  $ 6,050  $ 5,603 
Oral tobacco products 1,319  1,261  693  660 
Wine 317  277  167  131 
All other 36  (21) 26  (27)
Net revenues $ 12,972  $ 12,726  $ 6,936  $ 6,367 
Earnings before Income Taxes:
OCI:
Smokeable products $ 5,148  $ 4,820  $ 2,776  $ 2,450 
Oral tobacco products 864  861  472  447 
Wine 45  (366) 27  13 
All other (26) (56) (12) (51)
Amortization of intangibles (35) (37) (18) (18)
General corporate expenses (120) (90) (59) (45)
Operating income 5,876  5,132  3,186  2,796 
Interest and other debt expense, net (603) (583) (295) (308)
Loss on early extinguishment of debt (649) —    — 
Net periodic benefit income, excluding service cost 89  55  46  28 
Income (losses) from equity investments 126  166  75 
Gain (loss) on Cronos-related financial instruments 7  (97) (103) 40 
Earnings before income taxes $ 4,846  $ 4,673  $ 2,909  $ 2,565 
The comparability of OCI for the reportable segments was affected by the following:
Non-Participating Manufacturer (“NPM”) Adjustment Items: For the six months ended June 30, 2021, pre-tax income for NPM adjustment items of $32 million was recorded to cost of sales in the smokeable products segment. NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the 1998 Master Settlement Agreement (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation in Note 11. Contingencies).
Tobacco and Health Litigation Items: Pre-tax charges related to certain tobacco and health litigation items were recorded in Altria’s condensed consolidated statements of earnings as follows:
For the Six Months Ended June 30, For the Three Months Ended June 30,
(in millions) 2021 2020 2021 2020
Smokeable products segment $ 43  $ 39  $ 8  $ 17 
Interest and other debt expense, net    
Total $ 43  $ 42  $ 8  $ 18 
The amounts shown in the table above for the smokeable products segment were recorded in marketing, administration and research costs. For further discussion, see Note 11. Contingencies.
22

COVID-19 Special Items: Net pre-tax charges of $50 million ($41 million in the smokeable products segment and $9 million in the oral tobacco products segment) related to the COVID-19 pandemic were recorded in Altria’s condensed consolidated statements of earnings for the six and three months ended June 30, 2020. The net pre-tax charges, which were directly related to disruptions caused by or efforts to mitigate the impact of the COVID-19 pandemic, were all recorded in costs of sales and included premium pay, personal protective equipment and health screenings, which were partially offset by certain employment tax credits. The COVID-19 special items do not include the inventory-related implementation costs associated with the wine business strategic reset discussed below. These implementation costs were due to increased inventory levels, which were further negatively impacted by the COVID-19 pandemic, including economic uncertainty and government restrictions.
Implementation and Acquisition-Related Costs:
Wine Business Strategic Reset: During the six months ended June 30, 2020, Ste. Michelle recorded pre-tax implementation costs of $394 million associated with a strategic reset initiated in the first quarter of 2020 to maximize Ste. Michelle’s profitability and achieve improved long-term cash flow generation. Substantially all of the charges consisted of the following: (i) write-off of inventory ($292 million) as Ste. Michelle no longer believed that the benefit of the blending and production plans for its inventory outweighed inventory carrying cost given the reduced product volume demand; and (ii) estimated losses on future non-cancelable grape purchase commitments that Ste. Michelle believed no longer had a future economic benefit ($100 million). These charges were included in cost of sales in Altria’s condensed consolidated statements of earnings.
Acquisition-Related Costs: For the six months ended June 30, 2021, Altria recorded pre-tax acquisition-related costs of $37 million in the oral tobacco products segment primarily for the settlement of an arbitration related to the 2019 on! transaction. These costs were included in marketing, administration and research costs in Altria’s condensed consolidated statements of earnings.

Note 9. Debt
Short-term Borrowings and Borrowing Arrangements
At June 30, 2021 and December 31, 2020, Altria had no short-term borrowings.
At June 30, 2021, Altria had a senior unsecured 5-year revolving credit agreement (as amended, the “Credit Agreement”) that provides for borrowings up to an aggregate principal amount of $3.0 billion. The Credit Agreement, which is used for general corporate purposes, expires on August 1, 2023 and includes an option, subject to certain conditions, for Altria to extend the Credit Agreement for two additional one-year periods. Pricing for interest and fees under the Credit Agreement may be modified in the event of a change in the rating of Altria’s long-term senior unsecured debt. Interest rates on borrowings under the Credit Agreement are expected to be based on the London Interbank Offered Rate (“LIBOR”), or any mutually agreed upon benchmark rate, plus a percentage based on the higher of the ratings of Altria’s long-term senior unsecured debt from Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”). The applicable percentage based on Altria’s long-term senior unsecured debt ratings at June 30, 2021 for borrowings under the Credit Agreement was 1.0%. The Credit Agreement does not include any other rating triggers, or any provisions that could require the posting of collateral.
The Credit Agreement includes various covenants, one of which requires Altria to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to Consolidated Interest Expense of not less than 4.0 to 1.0, calculated as of the end of the applicable quarter on a rolling four quarters basis. At June 30, 2021, the ratio of consolidated EBITDA to Consolidated Interest Expense, calculated in accordance with the Credit Agreement, was 9.7 to 1.0. At June 30, 2021, Altria was in compliance with its covenants in the Credit Agreement. The terms “Consolidated EBITDA” and “Consolidated Interest Expense,” each as defined in the Credit Agreement, include certain adjustments.
In March 2020, due to the uncertainty at that time in the global capital markets, including the commercial paper markets, resulting from the COVID-19 pandemic, Altria elected to borrow the full $3.0 billion available under the Credit Agreement as a precautionary measure to increase its cash position and preserve financial flexibility. In June 2020, Altria repaid the full amount outstanding under the Credit Agreement using the net proceeds from the issuance of long-term senior unsecured notes issued in May 2020 and available cash.
Any commercial paper issued by Altria and borrowings under the Credit Agreement are guaranteed by PM USA.
Long-term Debt
The aggregate carrying value of Altria’s total long-term debt at June 30, 2021 and December 31, 2020 was $28.2 billion and $29.5 billion, respectively.
23

In May 2021, Altria repaid in full senior unsecured notes in the aggregate principal amount of $1.5 billion at maturity.
In February 2021, Altria issued long-term senior unsecured notes in the aggregate principal amount of $5.5 billion (the “Notes”). The net proceeds from the Notes were used (i) to fund the purchase and redemption of certain unsecured notes and payment of related fees and expenses, as described below, and (ii) for other general corporate purposes. The Notes contain the following terms:
$1.75 billion at 2.450%, due 2032, interest payable semiannually beginning August 4, 2021;
$1.50 billion at 3.400%, due 2041, interest payable semiannually beginning August 4, 2021;
$1.25 billion at 3.700%, due 2051, interest payable semiannually beginning August 4, 2021; and
$1.00 billion at 4.000%, due 2061, interest payable semiannually beginning August 4, 2021.
The Notes are Altria’s senior unsecured obligations and rank equally in right of payment with all of Altria’s existing and future senior unsecured indebtedness. Upon the occurrence of both (i) a change of control of Altria and (ii) the Notes ceasing to be rated investment grade by each of Moody’s, S&P and Fitch Ratings, Inc. within a specified time period, Altria will be required to make an offer to purchase the Notes at a price equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to the date of repurchase as and to the extent set forth in the terms of the Notes.
The obligations of Altria under the Notes are guaranteed by PM USA.
During the first quarter of 2021, Altria completed debt tender offers to purchase for cash certain of its long-term senior unsecured notes in an aggregate principal amount of $4,042 million. Details of the debt tender offers are as follows:
(in millions) Principal Amount of Notes Purchased
2.850% Notes due 2022
$ 795 
2.950% Notes due 2023
132 
4.000% Notes due 2024
624 
3.800% Notes due 2024
655 
4.400% Notes due 2026
430 
4.800% Notes due 2029
1,094 
9.950% Notes due 2038
65 
10.200% Notes due 2039
18 
6.200% Notes due 2059
229 
$ 4,042 
During the first quarter of 2021, Altria also redeemed all of its outstanding 3.490% Notes due 2022 in an aggregate principal amount of $1.0 billion.
As a result of the debt tender offers and redemption, during the first quarter of 2021, Altria recorded pre-tax losses on early extinguishment of debt of $649 million, which included premiums and fees of $623 million and the write-off of related unamortized debt discounts and debt issuance costs of $26 million.
At June 30, 2021 and December 31, 2020, accrued interest on long-term debt of $384 million and $458 million, respectively, was included in other accrued liabilities on Altria’s condensed consolidated balance sheets.
For a discussion of the fair value of Altria’s long-term debt and the designation of its Euro denominated senior unsecured notes as a net investment hedge of its investment in ABI, see Note 4. Financial Instruments.

24

Note 10. Income Taxes
The income tax rates for the six and three months ended June 30, 2021 were 26.3% and 26.1%, respectively, versus 25.4% and 24.4% for the six and three months ended June 30, 2020, respectively. The changes in the tax rates for both periods were due primarily to higher net tax expense in 2021 due to valuation allowances recorded for deferred tax assets related to Altria’s investment in JUUL and Altria’s Investment in Cronos.
The following chart provides a reconciliation of the beginning and ending valuation allowances for the period ended June 30, 2021:
(in millions)
Balance at beginning of year $ 2,817 
Additions to valuation allowance charged to income tax expense 233 
Reductions to valuation allowance credited to income tax benefit (49)
Foreign currency translation (4)
Balance at end of period $ 2,997 
Altria determines the realizability of deferred tax assets based on the weight of available evidence, that it is more-likely-than-not that the deferred tax asset will not be realized. In reaching this determination, Altria considers all available positive and negative evidence, including the character of the loss, carryback and carryforward considerations, future reversals of temporary differences and available tax planning strategies.
The current changes in valuation allowances were due to deferred tax assets recorded in connection with Altria’s Investment in Cronos and changes in the estimated fair value of its investment in JUUL.

Note 11. Contingencies
Legal proceedings covering a wide range of matters are pending or threatened in various U.S. and foreign jurisdictions against Altria and its subsidiaries, including PM USA and USSTC, as well as their respective indemnitees and Altria’s investees. Various types of claims may be raised in these proceedings, including product liability, unfair trade practices, antitrust, tax, contraband shipments, patent infringement, employment matters, claims alleging violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), claims for contribution and claims of competitors, shareholders or distributors. Legislative action, such as changes to tort law, also may expand the types of claims and remedies available to plaintiffs.
Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending or future cases. An unfavorable outcome or settlement of pending tobacco-related or other litigation could encourage the commencement of additional litigation. Damages claimed in some tobacco-related and other litigation are or can be significant and, in certain cases, have ranged in the billions of dollars. The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome. In certain cases, plaintiffs claim that defendants’ liability is joint and several. In such cases, Altria or its subsidiaries may face the risk that one or more co-defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proporti