RICHMOND, Va.--(BUSINESS WIRE)-- Altria Group, Inc. (NYSE: MO) today reports its 2022 second-quarter and first-half business results and reaffirms its guidance for 2022 full-year adjusted diluted earnings per share (EPS).
“Our tobacco businesses performed well in a challenging macroeconomic environment for the first half of the year,” said Billy Gifford, Altria’s Chief Executive Officer. “The smokeable products segment delivered solid operating companies income growth behind the resilience of Marlboro, and our moist smokeless tobacco brands continued to drive profitability. We also continued to make progress toward our Vision through the investments we laid out in January, which included supporting the expansion of on!. We are encouraged by on!’s retail momentum and significant share growth since achieving unconstrained capacity last summer.”
“We believe this is a pivotal point in the U.S. tobacco industry. The FDA has the opportunity to create a mature, regulated marketplace of smoke-free products that can successfully realize tobacco harm reduction and improve the lives of millions of adult smokers. We share the FDA’s goal to transition adult smokers away from cigarettes, but we continue to believe that harm reduction, not prohibition, is the best path forward.”
“Our financial plans for the year remain on track, and we reaffirm our guidance to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93. This range represents an adjusted diluted EPS growth rate of 4% to 7% from a $4.61 base in 2021.”
Altria Headline Financials1
($ in millions, except per share data) | Q2 2022 | Change vs. Q2 2021 |
| First Half 2022 | Change vs. First Half 2021 |
Net revenues | $6,543 | (5.7)% |
| $12,435 | (4.1)% |
Revenues net of excise taxes | $5,374 | (4.3)% |
| $10,193 | (2.9)% |
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Reported tax rate | 44.5% | 18.4 pp |
| 33.4% | 7.1 pp |
Adjusted tax rate | 24.8% | (0.1) pp |
| 24.9% | – pp |
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Reported diluted EPS2 | $0.49 | (57.8)% |
| $1.57 | (18.7)% |
Adjusted diluted EPS2 | $1.26 | 2.4% |
| $2.38 | 3.5% |
1 “Adjusted” financial measures presented in this release exclude the impact of special items. See “Basis of Presentation” for more information.
2 “EPS” represents diluted earnings per share attributable to Altria.
As previously announced, a conference call with the investment community and news media will be webcast on July 28, 2022 at 9:00 a.m. Eastern Time. Access to the webcast is available at www.altria.com/webcasts.
Cash Returns to Shareholders and Capital Markets Activity
Share Repurchase Program
Dividends
Capital Markets Activity
Environmental, Social and Governance (ESG)
Our Corporate Responsibility Focus Areas are (i) reduce the harm of tobacco products, (ii) prevent underage use, (iii) protect the environment, (iv) drive responsibility through our value chain, (v) support our people and communities and (vi) engage and lead responsibly. Our corporate responsibility reports are available on the Corporate Responsibility section of www.altria.com.
Macroeconomic and Geopolitical Conditions Impacting Our Businesses
Impact on Tobacco Business Operations
Impact on Adult Tobacco Consumers (ATCs)
Impact on ABI Investment
JUUL Investment Update
2022 Full-Year Guidance
We reaffirm our guidance to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93, representing a growth rate of 4% to 7% from an adjusted diluted EPS base of $4.61 in 2021. While the 2022 full-year adjusted diluted EPS guidance accounts for a range of scenarios, the external environment remains dynamic. We will continue to monitor conditions related to (i) the economy, including the impact of increased inflation, rising interest rates and global supply chain disruptions, (ii) the impact of current and future COVID-19 variants and mitigation strategies, (iii) ATC dynamics, including tobacco usage occasions, available disposable income, purchasing patterns and adoption of smoke-free products, (iv) regulatory and legislative developments and (v) the impacts of the Russian invasion of Ukraine.
Our 2022 full-year adjusted diluted EPS guidance range includes planned investments in support of our Vision, such as (i) enhancement of our digital consumer engagement system, (ii) increased smoke-free product research, development and regulatory preparation expenses and (iii) marketplace activities in support of our smoke-free products. The guidance range also includes anticipated inflationary increases in MSA expenses and direct and indirect materials costs and our current expectation that PM USA will not have access to the IQOS system in 2022.
Our full-year adjusted diluted EPS guidance range excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, for example, loss on early extinguishment of debt, restructuring charges, asset impairment charges, acquisition-related and disposition-related costs, equity investment-related special items (including any changes in fair value of our equity investment recorded using the fair value option and any changes in the fair value of related warrants and preemptive rights), certain income tax items, charges associated with tobacco and health and certain other litigation items, and resolutions of certain non-participating manufacturer (NPM) adjustment disputes under the MSA (such dispute resolutions are referred to as NPM Adjustment Items). See Table 1 below for the income and expense items for the first six months of 2022.
Our management cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on our reported diluted EPS because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, we do not provide a corresponding U.S. generally accepted accounting principles (GAAP) measure for, or reconciliation to, our adjusted diluted EPS guidance.
ALTRIA GROUP, INC.
See “Basis of Presentation” below for an explanation of financial measures and reporting segments discussed in this release.
Financial Performance
Second Quarter
First Half
Table 1 - Altria’s Adjusted Results |
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| Second Quarter |
| Six Months Ended June 30, | ||||
| 2022 | 2021 | Change |
| 2022 | 2021 | Change |
Reported diluted EPS | $ 0.49 | $ 1.16 | (57.8) % |
| $ 1.57 | $ 1.93 | (18.7) % |
NPM Adjustment Items | — | — |
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| (0.02) | (0.01) |
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Asset impairment, exit, implementation, acquisition and disposition-related costs | — | — |
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| — | 0.02 |
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Tobacco and health and certain other litigation items | 0.02 | — |
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| 0.02 | 0.02 |
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JUUL changes in fair value | 0.64 | (0.05) |
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| 0.70 | 0.05 |
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ABI-related special items | 0.05 | 0.02 |
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| 0.02 | (0.04) |
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Cronos-related special items | 0.06 | 0.10 |
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| 0.09 | 0.06 |
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Loss on early extinguishment of debt | — | — |
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| — | 0.27 |
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Adjusted diluted EPS | $ 1.26 | $ 1.23 | 2.4 % |
| $ 2.38 | $ 2.30 | 3.5 % |
Note: For details of pre-tax, tax and after-tax amounts, see Schedules 7 and 9.
Special Items
The EPS impact of the following special items is shown in Table 1 and Schedules 6, 7, 8 and 9.
NPM Adjustment Items
Tobacco and Health and Certain Other Litigation Items
JUUL Changes in Fair Value
We recorded non-cash, pre-tax unrealized (income) losses from equity investments as a result of changes in the estimated fair value of our investment in JUUL consisting of the following:
| Second Quarter |
| Six Months Ended June 30, | |||||||
($ in millions, except per share data) |
| 2022 |
| 2021 |
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| 2022 |
| 2021 |
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(Income) losses from equity investments | $ | 1,155 | $ | (100 | ) |
| $ | 1,255 | $ | 100 |
Earnings per share | $ | 0.64 | $ | (0.05 | ) |
| $ | 0.70 | $ | 0.05 |
We recorded corresponding adjustments to the JUUL tax valuation allowance in 2022 and 2021.
ABI-Related Special Items
The ABI-related special items above include our respective share of the amounts recorded by ABI and additional adjustments related to (i) conversion from international financial reporting standards to GAAP and (ii) adjustments to our investment required under the equity method of accounting.
Cronos-Related Special Items
We recorded net pre-tax (income) expense consisting of the following:
| Second Quarter |
| Six Months Ended June 30, | |||||||
($ in millions, except per share data) |
| 2022 |
| 2021 |
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| 2022 |
| 2021 |
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(Gain) loss on Cronos-related financial instruments 1 | $ | 4 | $ | 103 |
| $ | 14 | $ | (7 | ) |
(Income) losses from equity investments 2 |
| 110 |
| 78 |
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| 161 |
| 118 |
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Total Cronos-related special items - (income) expense | $ | 114 | $ | 181 |
| $ | 175 | $ | 111 |
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Earnings per share | $ | 0.06 | $ | 0.10 |
| $ | 0.09 | $ | 0.06 |
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1 Amounts are related to the non-cash change in the fair value of the warrant and certain anti-dilution protections.
2 Amounts include our share of special items recorded by Cronos and additional adjustments, if required under the equity method of accounting, related to our investment in Cronos including the $107 million non-cash, pre-tax impairment of our investment in Cronos in the second quarter of 2022.
We recorded corresponding adjustments to the Cronos tax valuation allowance in 2022 and 2021 relating to the special items.
Loss on Early Extinguishment of Debt
SMOKEABLE PRODUCTS
Second Quarter
First Half
Table 2 - Smokeable Products: Revenues and OCI ($ in millions) |
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| Second Quarter |
| Six Months Ended June 30, | ||||
| 2022 | 2021 | Change |
| 2022 | 2021 | Change |
Net revenues | $ 5,873 | $ 6,050 | (2.9) % |
| $ 11,138 | $ 11,300 | (1.4) % |
Excise taxes | (1,137) | (1,281) |
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| (2,181) | (2,402) |
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Revenues net of excise taxes | $ 4,736 | $ 4,769 | (0.7) % |
| $ 8,957 | $ 8,898 | 0.7 % |
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Reported OCI | $ 2,762 | $ 2,776 | (0.5) % |
| $ 5,321 | $ 5,148 | 3.4 % |
NPM Adjustment Items | — | — |
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| (60) | (32) |
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Tobacco and health and certain other litigation items | 38 | 8 |
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| 50 | 43 |
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Adjusted OCI | $ 2,800 | $ 2,784 | 0.6 % |
| $ 5,311 | $ 5,159 | 2.9 % |
Adjusted OCI margins 1 | 59.1 % | 58.4 % | 0.7 pp |
| 59.3 % | 58.0 % | 1.3 pp |
1 Adjusted OCI margins are calculated as adjusted OCI divided by revenues net of excise taxes.
Shipment Volume
Second Quarter
First Half
Table 3 - Smokeable Products: Reported Shipment Volume (sticks in millions) | |||||||
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| Second Quarter |
| Six Months Ended June 30, | ||||
| 2022 | 2021 | Change |
| 2022 | 2021 | Change |
Cigarettes: |
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Marlboro | 20,035 | 22,339 | (10.3) % |
| 38,325 | 41,754 | (8.2) % |
Other premium | 1,017 | 1,157 | (12.1) % |
| 1,954 | 2,138 | (8.6) % |
Discount | 1,457 | 1,810 | (19.5) % |
| 2,847 | 3,428 | (16.9) % |
Total cigarettes | 22,509 | 25,306 | (11.1) % |
| 43,126 | 47,320 | (8.9) % |
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Cigars: |
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Black & Mild | 432 | 453 | (4.6) % |
| 865 | 932 | (7.2) % |
Other | 1 | 3 | (66.7) % |
| 2 | 4 | (50.0) % |
Total cigars | 433 | 456 | (5.0) % |
| 867 | 936 | (7.4) % |
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Total smokeable products | 22,942 | 25,762 | (10.9) % |
| 43,993 | 48,256 | (8.8) % |
Note: Cigarettes volume includes units sold as well as promotional units, but excludes units sold for distribution to Puerto Rico, and units sold in U.S. Territories, to overseas military and by Philip Morris Duty Free Inc., none of which, individually or in the aggregate, is material to the smokeable products segment.
Retail Share and Brand Activity
Second Quarter
First Half
Table 4 - Smokeable Products: Cigarettes Retail Share (percent) |
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| Second Quarter |
| Six Months Ended June 30, | ||||||||||
| 2022 |
| 2021 |
| Percentage point change |
| 2022 |
| 2021 |
| Percentage point change | ||
Cigarettes: |
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Marlboro | 42.7 | % | 43.1 | % | (0.4 | ) |
| 42.6 | % | 43.0 | % | (0.4 | ) |
Other premium | 2.3 |
| 2.3 |
| — |
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| 2.3 |
| 2.3 |
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Discount | 3.2 |
| 3.5 |
| (0.3 | ) |
| 3.3 |
| 3.6 |
| (0.3 | ) |
Total cigarettes | 48.2 | % | 48.9 | % | (0.7 | ) |
| 48.2 | % | 48.9 | % | (0.7 | ) |
Note: Retail share results for cigarettes are based on data from IRI/MSAi, a tracking service that uses a sample of stores and certain wholesale shipments to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes. For other trade classes selling cigarettes, retail share is based on shipments from wholesalers to retailers (STARS). This service is not designed to capture sales through other channels, including the internet, direct mail and some illicitly tax-advantaged outlets. It is IRI’s standard practice to periodically refresh its services, which could restate retail share results that were previously released in this service.
ORAL TOBACCO PRODUCTS
Revenues and OCI
Second Quarter
First Half
Table 5 - Oral Tobacco Products: Revenues and OCI ($ in millions) |
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| Second Quarter |
| Six Months Ended June 30, | ||||
| 2022 | 2021 | Change |
| 2022 | 2021 | Change |
Net revenues | $ 665 | $ 693 | (4.0) % |
| $ 1,278 | $ 1,319 | (3.1) % |
Excise taxes | (32) | (35) |
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| (61) | (66) |
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Revenues net of excise taxes | $ 633 | $ 658 | (3.8) % |
| $ 1,217 | $ 1,253 | (2.9) % |
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Reported OCI | $ 430 | $ 472 | (8.9) % |
| $ 837 | $ 864 | (3.1) % |
Asset impairment, exit, implementation, acquisition and disposition-related costs | — | — |
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| — | 37 |
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Adjusted OCI | $ 430 | $ 472 | (8.9) % |
| $ 837 | $ 901 | (7.1) % |
Adjusted OCI margins 1 | 67.9 % | 71.7 % | (3.8) pp |
| 68.8 % | 71.9 % | (3.1) pp |
1 Adjusted OCI margins are calculated as adjusted OCI divided by revenues net of excise taxes.
Shipment Volume
Second Quarter
First Half
Table 6 - Oral Tobacco Products: Reported Shipment Volume (cans and packs in millions) | |||||||
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| Second Quarter |
| Six Months Ended June 30, | ||||
| 2022 | 2021 | Change |
| 2022 | 2021 | Change |
Copenhagen | 123.1 | 134.1 | (8.2) % |
| 238.3 | 257.0 | (7.3) % |
Skoal | 46.9 | 52.3 | (10.3) % |
| 90.8 | 100.5 | (9.7) % |
on! | 20.3 | 12.9 | 57.4 % |
| 38.6 | 22.1 | 74.7 % |
Other | 17.7 | 18.3 | (3.3) % |
| 34.4 | 35.9 | (4.2) % |
Total oral tobacco products | 208.0 | 217.6 | (4.4) % |
| 402.1 | 415.5 | (3.2) % |
Note: Volume includes cans and packs sold, as well as promotional units, but excludes international volume, which is currently not material to the oral tobacco products segment. New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. To calculate volumes of cans and packs shipped, one pack of snus or one can of oral nicotine pouches, irrespective of the number of pouches in the pack, is assumed to be equivalent to one can of MST.
Retail Share and Brand Activity
Second Quarter
First Half
Table 7 - Oral Tobacco Products: Retail Share (percent) | |||||||||||||
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| Second Quarter |
| Six Months Ended June 30, | ||||||||||
| 2022 |
| 2021 |
| Percentage point change |
| 2022 |
| 2021 |
| Percentage point change | ||
Copenhagen | 27.2 | % | 29.8 | % | (2.6 | ) |
| 27.6 | % | 30.0 | % | (2.4 | ) |
Skoal | 11.5 |
| 12.7 |
| (1.2 | ) |
| 11.6 |
| 12.8 |
| (1.2 | ) |
on! | 4.9 |
| 2.0 |
| 2.9 |
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| 4.5 |
| 1.8 |
| 2.7 |
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Other | 3.1 |
| 3.2 |
| (0.1 | ) |
| 3.1 |
| 3.3 |
| (0.2 | ) |
Total oral tobacco products | 46.7 | % | 47.7 | % | (1.0 | ) |
| 46.8 | % | 47.9 | % | (1.1 | ) |
Note: The oral tobacco products retail share results exclude international volume. Retail share results for oral tobacco products are based on data from IRI InfoScan, a tracking service that uses a sample of stores to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes on the number of cans and packs sold. Oral tobacco products is defined by IRI as moist smokeless, snus and oral nicotine pouches. New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. For example, one pack of snus or one can of oral nicotine pouches, irrespective of the number of pouches in the pack, is assumed to be equivalent to one can of MST. Because this service represents retail share performance only in key trade channels, it should not be considered a precise measurement of actual retail share. It is IRI’s standard practice to periodically refresh its InfoScan services, which could restate retail share results that were previously released in this service.
Altria’s Profile
We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. Our Vision by 2030 is to responsibly lead the transition of adult smokers to a smoke-free future (Vision). We are Moving Beyond Smoking™, leading the way in moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for adult tobacco consumers, our businesses and society.
Our wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, we own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S cigar manufacturer. Our smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, and Helix Innovations LLC (Helix), a rapidly growing manufacturer of oral nicotine pouches. We also enhance our smoke-free product portfolio with exclusive U.S. commercialization rights to the IQOS Tobacco Heating System® and Marlboro HeatSticks®, and an equity investment in JUUL Labs, Inc. (JUUL).
We also own equity investments in Anheuser-Busch InBev SA/NV (ABI), the world’s largest brewer, and Cronos Group Inc. (Cronos), a leading Canadian cannabinoid company.
The brand portfolios of our tobacco operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal® and on!®. Trademarks and service marks related to Altria referenced in this release are the property of Altria or our subsidiaries or are used with permission.
Learn more about Altria at www.altria.com and follow us on Twitter, Facebook and LinkedIn.
Basis of Presentation
We report our financial results in accordance with GAAP. Our management reviews OCI, which is defined as operating income before general corporate expenses and amortization of intangibles, to evaluate the performance of, and allocate resources to, our segments. Our management also reviews certain financial results, including OCI, OCI margins and diluted EPS, on an adjusted basis, which excludes certain income and expense items, including those items noted under “2022 Full-Year Guidance.” Our management does not view any of these special items to be part of our underlying results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Our management also reviews income tax rates on an adjusted basis. Our adjusted effective tax rate may exclude certain income tax items from our reported effective tax rate. Our management believes that adjusted financial measures provide useful additional insight into underlying business trends and results, and provide a more meaningful comparison of year-over-year results. Our management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. These adjusted financial measures are not required by, or calculated in accordance with GAAP and may not be calculated the same as similarly titled measures used by other companies. These adjusted financial measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. We provide reconciliations of historical adjusted financial measures to corresponding GAAP measures in this release.
We use the equity method of accounting for our investment in ABI and Cronos and report our share of ABI’s and Cronos’s results using a one-quarter lag because ABI’s and Cronos’s results are not available in time for us to record them in the concurrent period. The one-quarter reporting lag for ABI and Cronos does not affect our cash flows.
Our reportable segments are (i) smokeable products, including combustible cigarettes and cigars manufactured and sold by PM USA and Middleton, respectively, and (ii) oral tobacco products, including MST and snus products manufactured and sold by USSTC, and oral nicotine pouches sold by Helix. Prior to the sale of Ste. Michelle Wine Estates Ltd. (Ste. Michelle) on October 1, 2021, wine produced and/or sold by Ste. Michelle was a reportable segment. We have included results for innovative tobacco products and Philip Morris Capital Corporation in “All Other.” Comparisons are to the corresponding prior-year period unless otherwise stated.
Forward-Looking and Cautionary Statements
This release contains projections of future results and other forward-looking statements that are subject to a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Important factors that may cause actual results to differ materially from those contained in the forward-looking statements included in this release are described in our publicly filed reports, including our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Reports on Form 10-Q. These factors include the following:
We caution that the foregoing list of factors is not complete and we do not undertake to update any forward-looking statements that we may make except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements referenced above.
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| Schedule 1 | |||||
ALTRIA GROUP, INC. and Subsidiaries Consolidated Statements of Earnings For the Quarters Ended June 30, (dollars in millions, except per share data) (Unaudited)
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| 2022 |
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| 2021 |
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| % Change | |
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Net revenues | $ | 6,543 |
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| $ | 6,936 |
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| (5.7 | ) % |
Cost of sales 1 |
| 1,708 |
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| 1,882 |
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Excise taxes on products 1 |
| 1,169 |
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| 1,322 |
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Gross profit |
| 3,666 |
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| 3,732 |
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| (1.8 | ) % |
Marketing, administration and research costs |
| 489 |
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| 469 |
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Operating companies income |
| 3,177 |
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| 3,263 |
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| (2.6 | ) % |
Amortization of intangibles |
| 18 |
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| 18 |
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General corporate expenses |
| 54 |
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| 59 |
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Operating income |
| 3,105 |
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| 3,186 |
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| (2.5 | ) % |
Interest and other debt expense, net |
| 280 |
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| 295 |
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Net periodic benefit income, excluding service cost |
| (47 | ) |
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| (46 | ) |
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(Income) losses from equity investments 1 |
| 1,263 |
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| (75 | ) |
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(Gain) loss on Cronos-related financial instruments |
| 4 |
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| 103 |
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Earnings before income taxes |
| 1,605 |
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| 2,909 |
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| (44.8 | ) % |
Provision for income taxes |
| 714 |
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| 759 |
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Net earnings |
| 891 |
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| 2,150 |
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| (58.6 | ) % |
Net (earnings) losses attributable to noncontrolling interests |
| — |
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| (1 | ) |
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Net earnings attributable to Altria | $ | 891 |
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| $ | 2,149 |
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| (58.5 | ) % |
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Per share data: |
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Diluted earnings per share attributable to Altria | $ | 0.49 |
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| $ | 1.16 |
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| (57.8 | ) % |
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Weighted-average diluted shares outstanding |
| 1,809 |
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| 1,849 |
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| (2.2 | ) % |
1 Cost of sales includes charges for resolution expenses related to state settlement agreements and FDA user fees. Supplemental information concerning those items, excise taxes on products sold and (income) losses from equity investments is shown in Schedule 5.
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| Schedule 2 | |||||||||||
ALTRIA GROUP, INC. | |||||||||||||||
and Subsidiaries | |||||||||||||||
Selected Financial Data | |||||||||||||||
For the Quarters Ended June 30, | |||||||||||||||
(dollars in millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
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| Net Revenues | ||||||||||||||
| Smokeable Products | Oral Tobacco Products | Wine | All Other | Total | ||||||||||
2022 | $ | 5,873 |
| $ | 665 |
| $ | — |
| $ | 5 |
| $ | 6,543 |
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2021 |
| 6,050 |
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| 693 |
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| 167 |
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| 26 |
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| 6,936 |
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% Change |
| (2.9 | ) % |
| (4.0 | ) % |
| (100.0 | ) % |
| (80.8 | ) % |
| (5.7 | ) % |
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| ||||||||||
Reconciliation: |
|
|
|
|
| ||||||||||
For the quarter ended June 30, 2021 | $ | 6,050 |
| $ | 693 |
| $ | 167 |
| $ | 26 |
| $ | 6,936 |
|
Operations |
| (177 | ) |
| (28 | ) |
| (167 | ) |
| (21 | ) |
| (393 | ) |
For the quarter ended June 30, 2022 | $ | 5,873 |
| $ | 665 |
| $ | — |
| $ | 5 |
| $ | 6,543 |
|
|
|
|
|
|
| ||||||||||
| Operating Companies Income (Loss) | ||||||||||||||
| Smokeable Products | Oral Tobacco Products | Wine | All Other | Total | ||||||||||
2022 | $ | 2,762 |
| $ | 430 |
| $ | — |
| $ | (15 | ) | $ | 3,177 |
|
2021 |
| 2,776 |
|
| 472 |
|
| 27 |
|
| (12 | ) |
| 3,263 |
|
% Change |
| (0.5 | ) % |
| (8.9 | ) % |
| (100.0 | ) % |
| (25.0 | ) % |
| (2.6 | ) % |
|
|
|
|
|
| ||||||||||
Reconciliation: |
|
|
|
|
| ||||||||||
For the quarter ended June 30, 2021 | $ | 2,776 |
| $ | 472 |
| $ | 27 |
| $ | (12 | ) | $ | 3,263 |
|
|
|
|
|
|
| ||||||||||
Tobacco and health and certain other litigation items - 2021 |
| 8 |
|
| — |
|
| — |
|
| — |
|
| 8 |
|
|
| 8 |
|
| — |
|
| — |
|
| — |
|
| 8 |
|
|
|
|
|
|
| ||||||||||
Tobacco and health and certain other litigation items - 2022 |
| (38 | ) |
| — |
|
| — |
|
| — |
|
| (38 | ) |
|
| (38 | ) |
| — |
|
| — |
|
| — |
|
| (38 | ) |
Operations |
| 16 |
|
| (42 | ) |
| (27 | ) |
| (3 | ) |
| (56 | ) |
For the quarter ended June 30, 2022 | $ | 2,762 |
| $ | 430 |
| $ | — |
| $ | (15 | ) | $ | 3,177 |
|
|
|
|
| Schedule 3 | ||||||
ALTRIA GROUP, INC. | ||||||||||
and Subsidiaries | ||||||||||
Consolidated Statements of Earnings | ||||||||||
For the Six Months Ended June 30, | ||||||||||
(dollars in millions, except per share data) | ||||||||||
(Unaudited) | ||||||||||
|
|
|
|
|
| |||||
| 2022 |
| 2021 |
| % Change | |||||
|
|
|
|
|
| |||||
Net revenues | $ | 12,435 |
|
| $ | 12,972 |
|
| (4.1 | ) % |
Cost of sales 1 |
| 3,154 |
|
|
| 3,490 |
|
|
| |
Excise taxes on products 1 |
| 2,242 |
|
|
| 2,478 |
|
|
| |
Gross profit |
| 7,039 |
|
|
| 7,004 |
|
| 0.5 | % |
Marketing, administration and research costs |
| 901 |
|
|
| 973 |
|
|
| |
Operating companies income |
| 6,138 |
|
|
| 6,031 |
|
| 1.8 | % |
Amortization of intangibles |
| 35 |
|
|
| 35 |
|
|
| |
General corporate expenses |
| 114 |
|
|
| 120 |
|
|
| |
Operating income |
| 5,989 |
|
|
| 5,876 |
|
| 1.9 | % |
Interest and other debt expense, net |
| 561 |
|
|
| 603 |
|
|
| |
Loss on early extinguishment of debt |
| — |
|
|
| 649 |
|
|
| |
Net periodic benefit income, excluding service cost |
| (93 | ) |
|
| (89 | ) |
|
| |
(Income) losses from equity investments 1 |
| 1,229 |
|
|
| (126 | ) |
|
| |
(Gain) loss on Cronos-related financial instruments |
| 14 |
|
|
| (7 | ) |
|
| |
Earnings before income taxes |
| 4,278 |
|
|
| 4,846 |
|
| (11.7 | ) % |
Provision for income taxes |
| 1,428 |
|
|
| 1,275 |
|
|
| |
Net earnings |
| 2,850 |
|
|
| 3,571 |
|
| (20.2 | ) % |
Net (earnings) losses attributable to noncontrolling interests |
| — |
|
|
| 2 |
|
|
| |
Net earnings attributable to Altria | $ | 2,850 |
|
| $ | 3,573 |
|
| (20.2 | ) % |
|
|
|
|
|
| |||||
Per share data2: |
|
|
|
|
| |||||
Diluted earnings per share attributable to Altria | $ | 1.57 |
|
| $ | 1.93 |
|
| (18.7 | ) % |
|
|
|
|
|
| |||||
Weighted-average diluted shares outstanding |
| 1,813 |
|
|
| 1,853 |
|
| (2.2 | ) % |
1 Cost of sales includes charges for resolution expenses related to state settlement agreements and FDA user fees. Supplemental information concerning those items, excise taxes on products sold and income (losses) from equity investments is shown in Schedule 5.
2 Diluted earnings per share attributable to Altria are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.
|
|
|
|
| Schedule 4 | ||||||||||
ALTRIA GROUP, INC. | |||||||||||||||
and Subsidiaries | |||||||||||||||
Selected Financial Data | |||||||||||||||
For the Six Months Ended June 30, | |||||||||||||||
(dollars in millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
|
|
|
|
|
| ||||||||||
| Net Revenues | ||||||||||||||
| Smokeable Products | Oral Tobacco Products | Wine | All Other | Total | ||||||||||
2022 | $ | 11,138 |
| $ | 1,278 |
| $ | — |
| $ | 19 |
| $ | 12,435 |
|
2021 |
| 11,300 |
|
| 1,319 |
|
| 317 |
|
| 36 |
|
| 12,972 |
|
% Change |
| (1.4 | ) % |
| (3.1 | ) % |
| (100.0 | ) % |
| (47.2 | ) % |
| (4.1 | ) % |
|
|
|
|
|
| ||||||||||
Reconciliation: |
|
|
|
|
| ||||||||||
For the six months ended June 30, 2021 | $ | 11,300 |
| $ | 1,319 |
| $ | 317 |
| $ | 36 |
| $ | 12,972 |
|
Operations |
| (162 | ) |
| (41 | ) |
| (317 | ) |
| (17 | ) |
| (537 | ) |
For the six months ended June 30, 2022 | $ | 11,138 |
| $ | 1,278 |
| $ | — |
| $ | 19 |
| $ | 12,435 |
|
|
|
|
|
|
| ||||||||||
| Operating Companies Income (Loss) | ||||||||||||||
| Smokeable Products | Oral Tobacco Products | Wine | All Other | Total | ||||||||||
2022 | $ | 5,321 |
| $ | 837 |
| $ | — |
| $ | (20 | ) | $ | 6,138 |
|
2021 |
| 5,148 |
|
| 864 |
|
| 45 |
|
| (26 | ) |
| 6,031 |
|
% Change |
| 3.4 | % |
| (3.1 | ) % |
| (100.0 | ) % |
| 23.1 | % |
| 1.8 | % |
|
|
|
|
|
| ||||||||||
Reconciliation: |
|
|
|
|
| ||||||||||
For the six months ended June 30, 2021 | $ | 5,148 |
| $ | 864 |
| $ | 45 |
| $ | (26 | ) | $ | 6,031 |
|
|
|
|
|
|
| ||||||||||
NPM Adjustment Items - 2021 |
| (32 | ) |
| — |
|
| — |
|
| — |
|
| (32 | ) |
Asset impairment, exit, implementation, acquisition and disposition-related costs - 2021 |
| — |
|
| 37 |
|
| 1 |
|
| — |
|
| 38 |
|
Tobacco and health and certain other litigation items - 2021 |
| 43 |
|
| — |
|
| — |
|
| — |
|
| 43 |
|
|
| 11 |
|
| 37 |
|
| 1 |
|
| — |
|
| 49 |
|
|
|
|
|
|
| ||||||||||
NPM Adjustment Items - 2022 |
| 60 |
|
| — |
|
| — |
|
| — |
|
| 60 |
|
Tobacco and health and certain other litigation items - 2022 |
| (50 | ) |
| — |
|
| — |
|
| — |
|
| (50 | ) |
|
| 10 |
|
| — |
|
| — |
|
| — |
|
| 10 |
|
Operations |
| 152 |
|
| (64 | ) |
| (46 | ) |
| 6 |
|
| 48 |
|
For the six months ended June 30, 2022 | $ | 5,321 |
| $ | 837 |
| $ | — |
| $ | (20 | ) | $ | 6,138 |
|
Schedule 5 | |||||||||||||||
ALTRIA GROUP, INC. | |||||||||||||||
and Subsidiaries | |||||||||||||||
Supplemental Financial Data | |||||||||||||||
(dollars in millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
|
|
|
|
|
|
|
| ||||||||
| For the Quarters Ended June 30, |
| For the Six Months Ended June 30, | ||||||||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
The segment detail of excise taxes on products sold is as follows: |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
Smokeable products | $ | 1,137 |
|
| $ | 1,281 |
|
| $ | 2,181 |
|
| $ | 2,402 |
|
Oral tobacco products |
| 32 |
|
|
| 35 |
|
|
| 61 |
|
|
| 66 |
|
Wine |
| — |
|
|
| 5 |
|
|
| — |
|
|
| 9 |
|
All other |
| — |
|
|
| 1 |
|
|
| — |
|
|
| 1 |
|
| $ | 1,169 |
|
| $ | 1,322 |
|
| $ | 2,242 |
|
| $ | 2,478 |
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
The segment detail of charges for resolution expenses related to state settlement agreements included in cost of sales is as follows: |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
Smokeable products | $ | 1,054 |
|
| $ | 1,126 |
|
| $ | 1,933 |
|
| $ | 2,067 |
|
Oral tobacco products |
| 3 |
|
|
| 3 |
|
|
| 5 |
|
|
| 5 |
|
All other |
| — |
|
|
| 1 |
|
|
| — |
|
|
| 1 |
|
| $ | 1,057 |
|
| $ | 1,130 |
|
| $ | 1,938 |
|
| $ | 2,073 |
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
The segment detail of FDA user fees included in cost of sales is as follows: |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
Smokeable products | $ | 69 |
|
| $ | 69 |
|
| $ | 137 |
|
| $ | 137 |
|
Oral tobacco products |
| 1 |
|
|
| 1 |
|
|
| 2 |
|
|
| 2 |
|
| $ | 70 |
|
| $ | 70 |
|
| $ | 139 |
|
| $ | 139 |
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
The detail of (income) losses from equity investments is as follows: |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
| ||||||||
ABI | $ | (12 | ) |
| $ | (74 | ) |
| $ | (212 | ) |
| $ | (392 | ) |
Cronos |
| 120 |
|
|
| 99 |
|
|
| 186 |
|
|
| 166 |
|
JUUL |
| 1,155 |
|
|
| (100 | ) |
|
| 1,255 |
|
|
| 100 |
|
| $ | 1,263 |
|
| $ | (75 | ) |
| $ | 1,229 |
|
| $ | (126 | ) |
|
|
| Schedule 6 | ||||
ALTRIA GROUP, INC. | |||||||
and Subsidiaries | |||||||
Net Earnings and Diluted Earnings Per Share - Attributable to Altria Group, Inc. | |||||||
For the Quarters Ended June 30, | |||||||
(dollars in millions, except per share data) | |||||||
(Unaudited) | |||||||
|
|
|
| ||||
|
|
|
| ||||
| Net Earnings |
| Diluted EPS | ||||
2022 Net Earnings | $ | 891 |
|
| $ | 0.49 |
|
2021 Net Earnings | $ | 2,149 |
|
| $ | 1.16 |
|
% Change |
| (58.5 | ) % |
|
| (57.8 | ) % |
|
|
|
| ||||
Reconciliation: |
|
|
| ||||
2021 Net Earnings | $ | 2,149 |
|
| $ | 1.16 |
|
|
|
|
| ||||
2021 Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 6 |
|
|
| — |
|
2021 Tobacco and health and certain other litigation items |
| 7 |
|
|
| — |
|
2021 JUUL changes in fair value |
| (100 | ) |
|
| (0.05 | ) |
2021 ABI-related special items |
| 29 |
|
|
| 0.02 |
|
2021 Cronos-related special items |
| 186 |
|
|
| 0.10 |
|
2021 Income tax items |
| 9 |
|
|
| — |
|
Subtotal 2021 special items |
| 137 |
|
|
| 0.07 |
|
|
|
|
| ||||
2022 Asset impairment, exit, implementation, acquisition and disposition-related costs |
| (2 | ) |
|
| — |
|
2022 Tobacco and health and certain other litigation items |
| (35 | ) |
|
| (0.02 | ) |
2022 JUUL changes in fair value |
| (1,155 | ) |
|
| (0.64 | ) |
2022 ABI-related special items |
| (89 | ) |
|
| (0.05 | ) |
2022 Cronos-related special items |
| (106 | ) |
|
| (0.06 | ) |
2022 Income tax items |
| (4 | ) |
|
| — |
|
Subtotal 2022 special items |
| (1,391 | ) |
|
| (0.77 | ) |
|
|
|
| ||||
Fewer shares outstanding |
| — |
|
|
| 0.03 |
|
Change in tax rate |
| 3 |
|
|
| — |
|
Operations |
| (7 | ) |
|
| — |
|
2022 Net Earnings | $ | 891 |
|
| $ | 0.49 |
|
|
|
|
| Schedule 7 | |||||||||||
ALTRIA GROUP, INC. | |||||||||||||||
and Subsidiaries | |||||||||||||||
Reconciliation of GAAP and non-GAAP Measures | |||||||||||||||
For the Quarters Ended June 30, | |||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
| |||||||||||||||
|
|
|
|
|
| ||||||||||
| Earnings before Income Taxes | Provision for Income Taxes | Net Earnings | Net Earnings Attributable to Altria | Diluted EPS | ||||||||||
2022 Reported | $ | 1,605 |
| $ | 714 |
| $ | 891 |
| $ | 891 |
| $ | 0.49 |
|
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 2 |
|
| — |
|
| 2 |
|
| 2 |
|
| — |
|
Tobacco and health and certain other litigation items |
| 46 |
|
| 11 |
|
| 35 |
|
| 35 |
|
| 0.02 |
|
JUUL changes in fair value |
| 1,155 |
|
| — |
|
| 1,155 |
|
| 1,155 |
|
| 0.64 |
|
ABI-related special items |
| 112 |
|
| 23 |
|
| 89 |
|
| 89 |
|
| 0.05 |
|
Cronos-related special items |
| 114 |
|
| 8 |
|
| 106 |
|
| 106 |
|
| 0.06 |
|
Income tax items |
| — |
|
| (4 | ) |
| 4 |
|
| 4 |
|
| — |
|
2022 Adjusted for Special Items | $ | 3,034 |
| $ | 752 |
| $ | 2,282 |
| $ | 2,282 |
| $ | 1.26 |
|
|
|
|
|
|
| ||||||||||
2021 Reported | $ | 2,909 |
| $ | 759 |
| $ | 2,150 |
| $ | 2,149 |
| $ | 1.16 |
|
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 8 |
|
| 2 |
|
| 6 |
|
| 6 |
|
| — |
|
Tobacco and health and certain other litigation items |
| 8 |
|
| 1 |
|
| 7 |
|
| 7 |
|
| — |
|
JUUL changes in fair value |
| (100 | ) |
| — |
|
| (100 | ) |
| (100 | ) |
| (0.05 | ) |
ABI-related special items |
| 39 |
|
| 10 |
|
| 29 |
|
| 29 |
|
| 0.02 |
|
Cronos-related special items |
| 181 |
|
| (5 | ) |
| 186 |
|
| 186 |
|
| 0.10 |
|
Income tax items |
| — |
|
| (9 | ) |
| 9 |
|
| 9 |
|
| — |
|
2021 Adjusted for Special Items | $ | 3,045 |
| $ | 758 |
| $ | 2,287 |
| $ | 2,286 |
| $ | 1.23 |
|
|
|
|
|
|
| ||||||||||
2022 Reported Net Earnings |
|
|
| $ | 891 |
| $ | 0.49 |
| ||||||
2021 Reported Net Earnings |
|
|
| $ | 2,149 |
| $ | 1.16 |
| ||||||
% Change |
|
|
|
| (58.5 | ) % | (57.8 | ) % | |||||||
|
|
|
|
|
| ||||||||||
2022 Net Earnings Adjusted for Special Items |
|
| $ | 2,282 |
| $ | 1.26 |
| |||||||
2021 Net Earnings Adjusted for Special Items |
|
| $ | 2,286 |
| $ | 1.23 |
| |||||||
% Change |
|
|
|
| (0.2 | ) % |
| 2.4 | % |
|
|
| Schedule 8 | ||||
ALTRIA GROUP, INC. | |||||||
and Subsidiaries | |||||||
Net Earnings and Diluted Earnings Per Share - Attributable to Altria Group, Inc. | |||||||
For the Six Months Ended June 30, | |||||||
(dollars in millions, except per share data) | |||||||
(Unaudited) | |||||||
|
|
|
| ||||
|
|
|
| ||||
| Net Earnings |
| Diluted EPS1 | ||||
2022 Net Earnings | $ | 2,850 |
|
| $ | 1.57 |
|
2021 Net Earnings | $ | 3,573 |
|
| $ | 1.93 |
|
% Change |
| (20.2 | ) % |
|
| (18.7 | ) % |
|
|
|
| ||||
Reconciliation: |
|
|
| ||||
2021 Net Earnings | $ | 3,573 |
|
| $ | 1.93 |
|
|
|
|
| ||||
2021 NPM Adjustment Items |
| (24 | ) |
|
| (0.01 | ) |
2021 Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 43 |
|
|
| 0.02 |
|
2021 Tobacco and health and certain other litigation items |
| 33 |
|
|
| 0.02 |
|
2021 JUUL changes in fair value |
| 100 |
|
|
| 0.05 |
|
2021 ABI-related special items |
| (71 | ) |
|
| (0.04 | ) |
2021 Cronos-related special items |
| 116 |
|
|
| 0.06 |
|
2021 Loss on early extinguishment of debt |
| 496 |
|
|
| 0.27 |
|
2021 Income tax items |
| 3 |
|
|
| — |
|
Subtotal 2021 special items |
| 696 |
|
|
| 0.37 |
|
|
|
|
| ||||
2022 NPM Adjustment Items |
| 45 |
|
|
| 0.02 |
|
2022 Asset impairment, exit, implementation, acquisition and disposition-related costs |
| (7 | ) |
|
| — |
|
2022 Tobacco and health and certain other litigation items |
| (44 | ) |
|
| (0.02 | ) |
2022 JUUL changes in fair value |
| (1,255 | ) |
|
| (0.70 | ) |
2022 ABI-related special items |
| (42 | ) |
|
| (0.02 | ) |
2022 Cronos-related special items |
| (167 | ) |
|
| (0.09 | ) |
2022 Income tax items |
| (9 | ) |
|
| — |
|
Subtotal 2022 special items |
| (1,479 | ) |
|
| (0.81 | ) |
|
|
|
| ||||
Fewer shares outstanding |
| — |
|
|
| 0.05 |
|
Change in tax rate |
| (1 | ) |
|
| — |
|
Operations |
| 61 |
|
|
| 0.03 |
|
2022 Net Earnings | $ | 2,850 |
|
| $ | 1.57 |
|
|
|
|
|
1 Diluted earnings per share attributable to Altria are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.
|
|
|
| Schedule 9 | |||||||||||
ALTRIA GROUP, INC. | |||||||||||||||
and Subsidiaries | |||||||||||||||
Reconciliation of GAAP and non-GAAP Measures | |||||||||||||||
For the Six Months Ended June 30, | |||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
| |||||||||||||||
|
|
|
|
|
| ||||||||||
| Earnings before Income Taxes | Provision for Income Taxes | Net Earnings | Net Earnings Attributable to Altria | Diluted EPS1 | ||||||||||
2022 Reported | $ | 4,278 |
| $ | 1,428 |
| $ | 2,850 |
| $ | 2,850 |
| $ | 1.57 |
|
NPM Adjustment Items |
| (60 | ) |
| (15 | ) |
| (45 | ) |
| (45 | ) |
| (0.02 | ) |
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 9 |
|
| 2 |
|
| 7 |
|
| 7 |
|
| — |
|
Tobacco and health and certain other litigation items |
| 58 |
|
| 14 |
|
| 44 |
|
| 44 |
|
| 0.02 |
|
JUUL changes in fair value |
| 1,255 |
|
| — |
|
| 1,255 |
|
| 1,255 |
|
| 0.70 |
|
ABI-related special items |
| 53 |
|
| 11 |
|
| 42 |
|
| 42 |
|
| 0.02 |
|
Cronos-related special items |
| 175 |
|
| 8 |
|
| 167 |
|
| 167 |
|
| 0.09 |
|
Income tax items |
| — |
|
| (9 | ) |
| 9 |
|
| 9 |
|
| — |
|
2022 Adjusted for Special Items | $ | 5,768 |
| $ | 1,439 |
| $ | 4,329 |
| $ | 4,329 |
| $ | 2.38 |
|
|
|
|
|
|
| ||||||||||
2021 Reported | $ | 4,846 |
| $ | 1,275 |
| $ | 3,571 |
| $ | 3,573 |
| $ | 1.93 |
|
NPM Adjustment Items |
| (32 | ) |
| (8 | ) |
| (24 | ) |
| (24 | ) |
| (0.01 | ) |
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 56 |
|
| 13 |
|
| 43 |
|
| 43 |
|
| 0.02 |
|
Tobacco and health and certain other litigation items |
| 43 |
|
| 10 |
|
| 33 |
|
| 33 |
|
| 0.02 |
|
JUUL changes in fair value |
| 100 |
|
| — |
|
| 100 |
|
| 100 |
|
| 0.05 |
|
ABI-related special items |
| (89 | ) |
| (18 | ) |
| (71 | ) |
| (71 | ) |
| (0.04 | ) |
Cronos-related special items |
| 111 |
|
| (5 | ) |
| 116 |
|
| 116 |
|
| 0.06 |
|
Loss on early extinguishment of debt |
| 649 |
|
| 153 |
|
| 496 |
|
| 496 |
|
| 0.27 |
|
Income tax items |
| — |
|
| (3 | ) |
| 3 |
|
| 3 |
|
| — |
|
2021 Adjusted for Special Items | $ | 5,684 |
| $ | 1,417 |
| $ | 4,267 |
| $ | 4,269 |
| $ | 2.30 |
|
|
|
|
|
|
| ||||||||||
2022 Reported Net Earnings |
|
|
| $ | 2,850 |
| $ | 1.57 |
| ||||||
2021 Reported Net Earnings |
|
|
| $ | 3,573 |
| $ | 1.93 |
| ||||||
% Change |
|
|
|
| (20.2 | ) % |
| (18.7 | ) % | ||||||
|
|
|
|
|
| ||||||||||
2022 Net Earnings Adjusted for Special Items |
|
| $ | 4,329 |
| $ | 2.38 |
| |||||||
2021 Net Earnings Adjusted for Special Items |
|
| $ | 4,269 |
| $ | 2.30 |
| |||||||
% Change |
|
|
|
| 1.4 | % |
| 3.5 | % |
1 Diluted earnings per share attributable to Altria are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.
|
|
|
| Schedule 10 | ||||||
ALTRIA GROUP, INC. | ||||||||||
and Subsidiaries | ||||||||||
Reconciliation of GAAP and non-GAAP Measures | ||||||||||
For the Year Ended December 31, 2021 | ||||||||||
(dollars in millions, except per share data) | ||||||||||
(Unaudited) | ||||||||||
|
|
|
|
|
| |||||
| Earnings before Income Taxes | Provision for Income Taxes | Net Earnings | Net Earnings Attributable to Altria | Diluted EPS | |||||
2021 Reported | $ | 3,824 | $ | 1,349 | $ | 2,475 | $ | 2,475 | $ | 1.34 |
NPM Adjustment Items |
| (76) |
| (19) |
| (57) |
| (57) |
| (0.03) |
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 120 |
| 21 |
| 99 |
| 99 |
| 0.05 |
Tobacco and health and certain other litigation items |
| 182 |
| 44 |
| 138 |
| 138 |
| 0.07 |
ABI-related special items |
| 6,203 |
| 1,302 |
| 4,901 |
| 4,901 |
| 2.66 |
Cronos-related special items |
| 466 |
| (4) |
| 470 |
| 470 |
| 0.25 |
Loss on early extinguishment of debt |
| 649 |
| 153 |
| 496 |
| 496 |
| 0.27 |
Income tax items |
| — |
| 3 |
| (3) |
| (3) |
| — |
2021 Adjusted for Special Items | $ | 11,368 | $ | 2,849 | $ | 8,519 | $ | 8,519 | $ | 4.61 |
|
|
| Schedule 11 | ||||
ALTRIA GROUP, INC. | |||||||
and Subsidiaries | |||||||
Condensed Consolidated Balance Sheets | |||||||
(dollars in millions) | |||||||
(Unaudited) | |||||||
|
|
|
| ||||
| June 30, 2022 |
| December 31, 2021 | ||||
Assets |
|
|
| ||||
Cash and cash equivalents | $ | 2,567 |
|
| $ | 4,544 |
|
Inventories |
| 1,144 |
|
|
| 1,194 |
|
Other current assets |
| 375 |
|
|
| 345 |
|
Property, plant and equipment, net |
| 1,557 |
|
|
| 1,553 |
|
Goodwill and other intangible assets, net |
| 17,549 |
|
|
| 17,483 |
|
Investments in equity securities |
| 12,590 |
|
|
| 13,481 |
|
Other long-term assets |
| 964 |
|
|
| 923 |
|
Total assets | $ | 36,746 |
|
| $ | 39,523 |
|
|
|
|
| ||||
Liabilities and Stockholders’ Equity (Deficit) |
|
|
| ||||
Current portion of long-term debt | $ | 2,634 |
|
| $ | 1,105 |
|
Accrued settlement charges |
| 1,749 |
|
|
| 3,349 |
|
Other current liabilities |
| 3,928 |
|
|
| 4,125 |
|
Long-term debt |
| 25,046 |
|
|
| 26,939 |
|
Deferred income taxes |
| 3,898 |
|
|
| 3,692 |
|
Accrued pension costs |
| 197 |
|
|
| 200 |
|
Accrued postretirement health care costs |
| 1,437 |
|
|
| 1,436 |
|
Other long-term liabilities |
| 260 |
|
|
| 283 |
|
Total liabilities |
| 39,149 |
|
|
| 41,129 |
|
Total stockholders’ equity (deficit) |
| (2,403 | ) |
|
| (1,606 | ) |
Total liabilities and stockholders’ equity (deficit) | $ | 36,746 |
|
| $ | 39,523 |
|
|
|
|
| ||||
Total debt | $ | 27,680 |
|
| $ | 28,044 |
|
|
|
|
|
| Schedule 12 | ||||||
ALTRIA GROUP, INC. | |||||||||||
and Subsidiaries | |||||||||||
Supplemental Financial Data for Special Items | |||||||||||
For the Quarters Ended June 30, | |||||||||||
(dollars in millions) | |||||||||||
(Unaudited) | |||||||||||
|
|
|
|
|
| ||||||
| Marketing, administration and research costs | General corporate expenses | Interest and other debt expense, net | (Income) losses from equity investments | (Gain) loss on Cronos-related financial instruments | ||||||
2022 Special Items - (Income) Expense |
|
|
|
|
| ||||||
Asset impairment, exit, implementation, acquisition and disposition-related costs | $ | — | $ | 2 | $ | — | $ | — |
| $ | — |
Tobacco and health and certain other litigation items |
| 38 |
| 7 |
| 1 |
| — |
|
| — |
JUUL changes in fair value |
| — |
| — |
| — |
| 1,155 |
|
| — |
ABI-related special items |
| — |
| — |
| — |
| 112 |
|
| — |
Cronos-related special items |
| — |
| — |
| — |
| 110 |
|
| 4 |
|
|
|
|
|
| ||||||
2021 Special Items - (Income) Expense |
|
|
|
|
| ||||||
Asset impairment, exit, implementation, acquisition and disposition-related costs | $ | — | $ | 8 | $ | — | $ | — |
| $ | — |
Tobacco and health and certain other litigation items |
| 8 |
| — |
| — |
| — |
|
| — |
JUUL changes in fair value |
| — |
| — |
| — |
| (100 | ) |
| — |
ABI-related special items |
| — |
| — |
| — |
| 39 |
|
| — |
Cronos-related special items |
| — |
| — |
| — |
| 78 |
|
| 103 |
Note: This schedule is intended to provide supplemental financial data for certain income and expense items that management believes are not part of underlying operations and their presentation in Altria’s consolidated statements of earnings. This schedule is not intended to provide, or reconcile, non-GAAP financial measures.
|
|
|
|
|
| Schedule 13 | |||||||||||
ALTRIA GROUP, INC. | |||||||||||||||||
and Subsidiaries | |||||||||||||||||
Supplemental Financial Data for Special Items | |||||||||||||||||
For the Six Months Ended June 30, | |||||||||||||||||
(dollars in millions) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||
| Cost of Sales | Marketing, administration and research costs | General corporate expenses | Interest and other debt expense, net | Loss on early extinguishment of debt | (Income) losses from equity investments | (Gain) loss on Cronos-related financial instruments | ||||||||||
2022 Special Items - (Income) Expense |
|
|
|
|
|
|
| ||||||||||
NPM Adjustment Items | $ | (60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
| $ | — |
|
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| — |
|
| — |
| 9 |
| — |
| — |
| — |
|
| — |
|
Tobacco and health and certain other litigation items |
| — |
|
| 50 |
| 7 |
| 1 |
| — |
| — |
|
| — |
|
JUUL changes in fair value |
| — |
|
| — |
| — |
| — |
| — |
| 1,255 |
|
| — |
|
ABI-related special items |
| — |
|
| — |
| — |
| — |
| — |
| 53 |
|
| — |
|
Cronos-related special items |
| — |
|
| — |
| — |
| — |
| — |
| 161 |
|
| 14 |
|
|
|
|
|
|
|
|
| ||||||||||
2021 Special Items - (Income) Expense |
|
|
|
|
|
|
| ||||||||||
NPM Adjustment Items | $ | (32 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
| $ | — |
|
Asset impairment, exit, implementation, acquisition and disposition-related costs |
| 1 |
|
| 37 |
| 18 |
| — |
| — |
| — |
|
| — |
|
Tobacco and health and certain other litigation items |
| — |
|
| 43 |
| — |
| — |
| — |
| — |
|
| — |
|
JUUL changes in fair value |
| — |
|
| — |
| — |
| — |
| — |
| 100 |
|
| — |
|
ABI-related special items |
| — |
|
| — |
| — |
| — |
| — |
| (89 | ) |
| — |
|
Cronos-related special items |
| — |
|
| — |
| — |
| — |
| — |
| 118 |
|
| (7 | ) |
Loss on early extinguishment of debt |
| — |
|
| — |
| — |
| — |
| 649 |
| — |
|
| — |
|
Note: This schedule is intended to provide supplemental financial data for certain income and expense items that management believes are not part of underlying operations and their presentation in Altria’s consolidated statements of earnings. This schedule is not intended to provide, or reconcile, non-GAAP financial measures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005497/en/
Altria Client Services Investor Relations 804-484-8222
Altria Client Services Media Relations 804-484-8897
Source: Altria Group, Inc.