news release...2008/03/31 · news release altria group, inc. (altria) reports 2008 first-quarter...

NEWS RELEASE

ALTRIA GROUP, INC. (ALTRIA) REPORTS

2008 FIRST-QUARTER RESULTS

Net revenues increased 2.8% to $4.4 billion Adjusted diluted earnings per share from continuing operations up 12.1% to $0.37

versus $0.33 in the first quarter of 2007 Altria reaffirms its 2008 guidance for adjusted diluted earnings per share from

continuing operations in the range of $1.63 to $1.67, representing a growth rate of approximately 9% to 11%, from a base of $1.50 per share in 2007

Reported diluted earnings per share from continuing operations of $0.29, which

includes net costs and charges related to the spin-off of Philip Morris International Inc., versus $0.33 in the first quarter of 2007

Spin-off of Philip Morris International Inc. completed

Marlboro delivers strong retail share gains, up 0.7 share points to 41.5%

John Middleton, Inc. posts strong cigar volume gains, up 8.2%, driven by Black &

Mild RICHMOND, VA, April 24, 2008 – Altria Group, Inc. (NYSE: MO) today announced

reported diluted earnings per share from continuing operations of $0.29 in the first quarter of

2008 versus $0.33 in the first quarter of 2007, down 12.1% versus the prior year. This quarter’s

results were impacted by net costs and charges related to the spin-off of Philip Morris

International Inc. (PMI) and the closure of Altria’s headquarters in New York as well as other

items detailed in Schedule 2. Adjusted for items detailed in Table 1, diluted earnings per share

from continuing operations were up 12.1% to $0.37 versus $0.33 in the year-earlier period.

“In the first quarter, Altria successfully completed the spin-off of PMI, which we expect

will further enhance shareholder value,” said Michael E. Szymanczyk, Chairman and Chief

Executive Officer of Altria Group, Inc. “In conjunction with this spin-off, Altria also completed

6601 West Broad Street, Richmond, VA 23230

its corporate restructuring, including relocating our corporate headquarters to Richmond,

Virginia. These actions will substantially reduce the company’s cost structure.”

“Adjusted for special items, Altria delivered solid earnings per share growth of 12.1%,”

Mr. Szymanczyk said. “PM USA achieved strong retail share growth behind the strength of

Marlboro. As expected, PM USA’s operating income results were lower than last year. PM

USA expects income performance to improve as the year unfolds. We are pleased with John

Middleton’s strong income, volume and share performance. This is the first full quarter that John

Middleton is reporting results as an Altria operating company.”

Spin-off of Philip Morris International Inc. Completed

On March 28, 2008, Altria completed the spin-off of PMI to its shareholders. Altria’s

shareholders received one share of PMI common stock for every share of Altria common stock

outstanding as of the March 19, 2008 record date. Additional details of the spin-off are available

at www.altria.com/pmispinoff or in the information statement mailed to all shareholders of Altria

common stock as of the record date.

Altria’s 2008 reported results and previous-year results reflect PMI as a discontinued

operation. As such, net revenues and operating companies income for PMI are excluded from

the company’s continuing results, while the net earnings impact is included as a single line item.

Tender Offer for Altria Notes Completed

On February 29, 2008, in connection with the PMI spin-off, Altria and its subsidiary,

Altria Finance (Cayman Islands) Ltd., completed debt tender offers and consent solicitations to

purchase for cash $2.3 billion of notes and debentures denominated in U.S. dollars and €373

million in euro-denominated bonds. Altria arranged a $4.0 billion bridge loan facility to finance

the tender offer. Altria intends to access the public-debt market to replace the retired debt. As a

result of the tender offer and consent solicitations, Altria recorded a $393 million pre-tax loss for

the early retirement of this debt.

Sale of NY Headquarters Building Completed

On March 25, 2008, Altria completed the sale of its corporate headquarters building at

120 Park Avenue in New York City. Altria recorded a pre-tax gain of $404 million on the sale

of the headquarters building.

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Corporate Restructuring

In connection with the PMI spin-off, Altria has restructured its corporate headquarters

functions, which included the move of its corporate headquarters to Richmond, Virginia. Altria

incurred pre-tax charges of $247 million, consisting primarily of employee separation costs, as

well as investment banking and legal fees associated with the PMI spin-off. This restructuring

program is expected to yield approximately $250 million in annual savings, beginning in 2009.

Share Repurchase Program Commenced

As previously announced, the Board of Directors has authorized a $7.5 billion two-year

share repurchase program. Altria began repurchasing shares as part of this program in April

2008.

Conference Call

A conference call with members of the investment community and news media will be

webcast today at 5 p.m. Eastern Time. Access to the webcast is available at www.altria.com.

2008 First-Quarter Results Excluding Special Items

Adjusted for the items shown in the table below, diluted earnings per share from

continuing operations increased 12.1% to $0.37 for the first quarter of 2008.

Table 1

2008 2007 ChangeReported diluted EPS from continuing operations $0.29 $0.33 (12.1)%Asset impairment, exit, integration and implementation costs 0.08 0.02Recoveries from airline industry exposure - (0.04)Gain on sale of corporate headquarters (0.12) - Loss on early extinguishment of debt 0.12 - Interest on tax reserve transfers to Kraft - 0.02Diluted EPS from continuing operations, adjusted for the above items

$0.37 $0.33 12.1%

First Quarter

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2008 Full-Year Forecast

Altria reaffirms its 2008 earnings per share guidance. Altria forecasts that 2008 adjusted

full-year diluted earnings per share from continuing operations will grow in the range of $1.63 to

$1.67. This represents a 9% to 11% growth rate from an adjusted base of $1.50 per share in

2007 as shown in Table 2 below. This full-year earnings per share forecast reflects expected

stronger earnings per share growth in the second half of this year compared to the first half. This

forecast also reflects the income contribution from John Middleton, Inc. (Middleton), the impact

of share repurchases and a higher effective tax rate. Altria also expects full-year operating

companies income growth from continuing operations in the mid-single digits on a reported and

underlying basis. The factors described in the Forward-Looking and Cautionary Statements

section of this release represent continuing risks to these projections.

Full-year 2007Reported diluted EPS from continuing operations $1.48Tax items (0.09)Recoveries from airline industry exposure (0.06)Interest on tax reserve transfers to Kraft 0.02Asset impairment, exit and implementation costs 0.15Diluted EPS from continuing operations, adjusted for the above items $1.50

Table 2

ALTRIA GROUP, INC.

As described in “Note 15. Segment Reporting” of Altria’s 2007 Annual Report,

management reviews operating companies income, which is defined as operating income before

corporate expenses and amortization of intangibles, to evaluate segment performance and

allocate resources. Management believes it is appropriate to disclose this measure to help

investors analyze business performance and trends. For a reconciliation of operating companies

income to operating income, see the Condensed Consolidated Statements of Earnings contained

in this release.

Altria has revised its reporting segments to reflect the PMI spin-off and the December

2007 acquisition of Middleton. Beginning with the first quarter of 2008, Altria’s reporting

segments are Cigarettes and Other Tobacco Products, manufactured and sold by Philip Morris

USA (PM USA); Cigars, manufactured and sold by Middleton; and Financial Services, provided

by Philip Morris Capital Corporation (PMCC).

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All references in this news release are to continuing operations, unless otherwise noted.

Schedules reflecting the PMI spin-off and the Kraft Foods Inc. (Kraft) spin-off with associated

revised results for the years 2006 and 2007 are attached.

2008 First-Quarter Results

Net revenues increased 2.8% to $4.4 billion. Operating income increased 8.4% to $1.2

billion, primarily driven by the $404 million pre-tax gain on the sale of the corporate

headquarters building, partially offset by a pre-tax charge of $247 million for the corporate

restructuring, and other items detailed in Schedule 2.

Earnings from continuing operations decreased 11.8% to $614 million, reflecting a $393

million loss on the early extinguishment of debt related to the bond tender offer, partially offset

by the items mentioned above and interest on tax reserve transfers to Kraft in 2007.

Net earnings, which include PMI and Kraft as discontinued operations and the factors

mentioned above, decreased 10.8% to $2.5 billion. This decrease was primarily due to the spin-

off of Kraft in the first quarter of 2007, partially offset by higher earnings from PMI in the first

quarter of 2008. Diluted earnings per share, including discontinued operations as detailed on

Schedule 1, decreased 10.8% to $1.16.

CIGARETTES and OTHER TOBACCO PRODUCTS


PM USA achieved strong retail cigarette share results for the first-quarter 2008, driven by

Marlboro, which increased its retail market share 0.7 points to 41.5% in the first quarter.

Net revenues and revenues net of excise taxes were essentially unchanged at $4.2 billion

and $3.4 billion, respectively. Operating companies income decreased 8.0% to $1.0 billion

compared to the year-earlier period. The decline was driven by lower volume, costs related to

the reduction of volume produced for PMI, higher resolution expenses, the timing of promotional

expenditures and a $26 million pre-tax charge for the previously announced closure of the

Cabarrus, NC cigarette manufacturing facility. These factors were partially offset by lower

wholesale promotional allowance rates.

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PM USA’s cigarette shipment volume of 40.1 billion units was 1.2% lower than the

prior-year period, but was estimated to be down approximately 3.5% when adjusted for changes

in trade inventories. PM USA estimates that total cigarette industry volume declined

approximately 4% in the first quarter. For the full-year 2008, PM USA estimates a total cigarette

industry volume decline of approximately 3%.

Cigarette volume performance by brand for PM USA is summarized in the table below:

Q1 2008 Q1 2007 Change**Marlboro 33.2 33.3 (0.2)%Parliament 1.3 1.3 (3.8)%Virginia Slims 1.5 1.7 (9.5)%Basic 3.1 3.2 (3.0)%Focus Brands 39.1 39.5 (1.0)%Other PM USA 1.0 1.1 (8.3)%Total PM USA 40.1 40.6 (1.2)%

PM USA Cigarette Volume* by Brand (Billion Units)

* Unit volume includes units sold as well as promotional units, and excludes Puerto Rico, U.S.

Territories, Overseas Military and Philip Morris Duty Free Inc. ** Calculation based on millions of units.

As shown in the following table, PM USA’s total retail share increased to 50.9% in the

first quarter of 2008, driven by Marlboro, which had a strong retail share gain of 0.7 share

points.

Q1 2008 Q1 2007 ChangeMarlboro 41.5% 40.8% 0.7ppParliament 1.9% 1.9% 0.0ppVirginia Slims 2.1% 2.2% -0.1ppBasic 4.0% 4.1% -0.1ppFocus Brands 49.5% 49.0% 0.5ppOther PM USA 1.4% 1.4% 0.0ppTotal PM USA 50.9% 50.4% 0.5pp

PM USA Quarterly Retail Share*

* Retail share performance is based on data from the Information Resources, Inc. (IRI)/Capstone Total

Retail Panel, which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes. The panel was not designed to capture sales through other channels, including internet and direct mail.

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As part of its adjacency growth strategy to develop new revenue and income sources for

the future, PM USA is test marketing Marlboro Snus, which is a spit-free, smokeless tobacco

pouch product designed especially for adult smokers. PM USA began testing Marlboro Snus in

Dallas, Texas in August of 2007 and expanded the test into the Indianapolis, Indiana area in the

first quarter of 2008. PM USA believes snus offers long-term potential as an alternative product

for adult smokers as well as other adult tobacco users.

In addition, PM USA is test marketing Marlboro Moist Smokeless Tobacco, which is

designed to provide a premium quality product at an attractive price for adult moist smokeless

tobacco consumers. PM USA began testing Marlboro Moist Smokeless Tobacco in the Atlanta

area in October 2007, and expanded the test market to include additional counties in the greater

Atlanta, Georgia area in the first quarter of 2008.

CIGARS


As previously announced, Altria completed the acquisition of Middleton, a leading

manufacturer of machine-made large cigars in December 2007. This is the first full quarter that

Altria is reporting results for Middleton.

Middleton’s first-quarter net revenues were $91 million and revenues net of excise taxes

were $76 million. Operating companies income in the first quarter was $41 million, which

includes a pre-tax charge of $2 million for integration costs. Middleton’s first-quarter cigar

shipment volume grew 8.2% versus year-ago to 312 million units, driven by its leading brand

Black & Mild.

Middleton’s first-quarter retail share through February 2008 increased 2.7 share points

versus year-ago to 26.8% of the machine-made large cigar segment, driven by Black & Mild.

Retail share for Black & Mild increased 3.0 share points versus year-ago to 25.9% of the

machine-made large cigar segment. Retail share performance is based on data from the most

recent IRI Syndicated Reviews Database (February 2008 year-to-date), which is a tracking

service that uses a sample of stores to project market share performance across multiple product

categories, including machine-made large cigars.

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Middleton entered into an agreement with PM USA to leverage PM USA’s distribution

network and field sales force to represent Middleton’s brands. In March 2008, PM USA’s sales

force began representing Middleton’s brands at retail and supporting the execution of

Middleton’s trade marketing programs.

FINANCIAL SERVICES


PMCC reported operating companies income of $74 million for the first quarter of 2008

versus $160 million for the year-earlier period. First-quarter 2007 results reflected a cash

recovery of $129 million at PMCC from assets that had been previously written down.

Excluding the 2007 recovery, operating companies income for the first quarter of 2008 was

favorable due to higher asset management gains.

PMCC remains focused on managing its portfolio of leased assets to maximize gains and

cash flows from income generating assets, as well as asset sales and related activities. PMCC is

not making new investments and expects that its operating companies income will vary over time

as investments mature or are sold.

Altria Group, Inc. Profile

As of March 31, 2008, Altria owned 100% of Philip Morris USA Inc., John Middleton,

Inc. and Philip Morris Capital Corporation, and approximately 28.6% of SABMiller plc. The

brand portfolio of Altria’s tobacco operating companies includes such well-known names as

Marlboro, Parliament, Virginia Slims, Basic and Black & Mild. Altria recorded 2007 net

revenues from continuing operations, which includes excise taxes billed to customers, of $18.7

billion.

Trademarks and service marks referenced in this release are the property of, or licensed

by, Altria Group, Inc. or its subsidiaries.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking

statements that involve a number of risks and uncertainties and are made pursuant to the Safe

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Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The following

important factors could cause actual results and outcomes to differ materially from those

contained in such forward-looking statements.

Altria’s tobacco subsidiaries (PM USA and Middleton) are subject to intense price

competition; changes in consumer preferences and demand for their products; fluctuations in

raw material costs; fluctuations in levels of customer inventories; the effects of local economic

and market conditions; and changes to income tax laws. Their results are dependent upon their

continued ability to promote brand equity successfully; to anticipate and respond to new

consumer trends; to develop new products and markets and to broaden brand portfolios in order

to compete effectively with lower-priced products; and to improve productivity.

Altria’s tobacco subsidiaries continue to be subject to litigation, including risks

associated with adverse jury and judicial determinations, and courts reaching conclusions at

variance with the company’s understanding of applicable law and bonding requirements in the

limited number of jurisdictions that do not limit the dollar amount of appeal bonds; legislation,

including actual and potential excise tax increases; increasing marketing and regulatory

restrictions; the effects of price increases related to excise tax increases and concluded tobacco

litigation settlements on consumption rates and consumer preferences within price segments;

health concerns relating to the use of tobacco products and exposure to environmental tobacco

smoke; governmental regulation; privately imposed smoking restrictions; and governmental and

grand jury investigations.

Altria and its subsidiaries are subject to other risks detailed from time to time in its

publicly filed documents, including its Annual Report on Form 10-K for the period ended

December 31, 2007. Altria cautions that the foregoing list of important factors is not complete

and does not undertake to update any forward-looking statements that it may make.

# # #

Contact: Clifford B. Fleet Vice President, Investor Relations Altria Client Services Inc. (804) 484-8222 Daniel R. Murphy

Director, Financial Communications Altria Client Services Inc. (804) 484-8222

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ALTRIA GROUP, INC. Schedule 1and Subsidiaries

Condensed Consolidated Statements of EarningsFor the Quarters Ended March 31,

(in millions of dollars, except per share data)(Unaudited)

2008 2007 % ChangeNet revenues 4,410$ 4,288$ 2.8 %Cost of sales 1,887 1,788 5.5 %Excise taxes on products (*) 806 800 0.8 %Gross profit 1,717 1,700 1.0 %Marketing, administration and research costs 551 539Asset impairment and exit costs 11 -Recoveries from airline industry exposure - (129)Operating companies income 1,155 1,290 (10.5)%Amortization of intangibles 2 -General corporate expenses 97 110Gain on sale of corporate headquarters building (404) -Corporate asset impairment and exit costs 247 61Operating income 1,213 1,119 8.4 %Interest and other debt (income) expense, net (16) 104Loss on early extinguishment of debt 393 -Equity earnings in SABMiller (143) (98)Earnings from continuing operations before income taxes 979 1,113 (12.0)%Provision for income taxes 365 417 (12.5)%Earnings from continuing operations 614 696 (11.8)%Earnings from discontinued operations, net of income taxes and minority interest 1,840 2,054Net earnings 2,454$ 2,750$ (10.8)%

Per share data:Basic earnings per share:Continuing operations 0.29$ 0.33$ (12.1)%Discontinued operations 0.87$ 0.98$Net earnings 1.16$ 1.31$ (11.5)%

Diluted earnings per share:Continuing operations 0.29$ 0.33$ (12.1)%Discontinued operations 0.87$ 0.97$Net earnings 1.16$ 1.30$ (10.8)%

Weighted average number of shares outstanding:Basic 2,107 2,097 0.5 %Diluted 2,122 2,112 0.5 %

(*) The segment detail of excise taxes on products sold is shown in Schedule 2.

1


Selected Financial Data by Business SegmentFor the Quarters Ended March 31,

(in millions of dollars)(Unaudited)

Net Revenues Operating Companies IncomeCigarettes and

other tobaccoproducts Cigars

Financialservices Total

Cigarettes andother tobacco

products CigarsFinancial

services Total2008 4,233$ 91$ 86$ 4,410$ 1,040$ 41$ 74$ 1,155$2007 4,245 - 43 4,288 1,130 - 160 1,290% Change (0.3)% - 100.0% 2.8% (8.0)% - (53.8)% (10.5)%

Reconciliation:For the quarter ended March 31, 2007 4,245$ -$ 43$ 4,288$ 1,130$ -$ 160$ 1,290$

Recoveries from airline industry exposure - 2007 - - - - - - (129) (129)- - - - - - (129) (129)

Asset impairment and exit costs - 2008 - - - - (11) - - (11)Integration costs - 2008 - - - - - (2) - (2)Implementation costs - 2008 - - - - (15) - - (15)

- - - - (26) (2) - (28)

Acquired business - 91 - 91 - 43 - 43Operations (12) - 43 31 (64) - 43 (21)For the quarter ended March 31, 2008 4,233$ 91$ 86$ 4,410$ 1,040$ 41$ 74$ 1,155$

The detail of excise taxes on products sold is as follows:2008 791$ 15$ -$ 806$2007 800$ -$ -$ 800$

2


Net Earnings and Diluted Earnings Per ShareFor the Quarters Ended March 31,

(in millions of dollars, except per share data)(Unaudited)

DilutedNet Earnings E.P.S.

2008 Continuing Earnings 614$ 0.29$2007 Continuing Earnings 696$ 0.33$% Change (11.8) % (12.1) %

Reconciliation:2007 Continuing Earnings 696$ 0.33$

2007 Asset impairment and exit costs 36 0.022007 Interest on tax reserve transfers to Kraft 50 0.022007 Recoveries from airline industry exposure (83) (0.04)

3 -

2008 Asset impairment, exit, integration and implementation costs (172) (0.08)2008 Gain on sale of corporate headquarters building 263 0.122008 Loss on early extinguishment of debt (256) (0.12)

(165) (0.08)

Change in tax rate 6 -Operations 74 0.042008 Continuing Earnings 614$ 0.29$2008 Discontinued Earnings 1,840$ 0.87$2008 Net Earnings 2,454$ 1.16$

2008 Continuing Earnings Adjusted For Special Items 779$ 0.37$2007 Continuing Earnings Adjusted For Special Items 699$ 0.33$% Change 11.4 % 12.1 %

3


Condensed Consolidated Statements of EarningsRevised for Discontinued Operations

for the quarters ended March 31, June 30, September 30, and December 31, 2007(in millions of dollars, except per share data)

(Unaudited)

Q1 2007Revised

Q2 2007Revised

Q3 2007Revised

Q4 2007Revised

2007 Full YearRevised

Net revenues 4,288$ 4,861$ 4,987$ 4,528$ 18,664$Cost of sales 1,788 2,021 2,096 1,922 7,827Excise taxes on products 800 899 927 826 3,452Gross profit 1,700 1,941 1,964 1,780 7,385Marketing, administration and research costs 539 558 621 639 2,357Asset impairment and exit costs - 318 10 16 344Recoveries from airline industry exposure (129) (78) (7) - (214)Operating companies income 1,290 1,143 1,340 1,125 4,898General corporate expenses 110 116 115 86 427Corporate asset impairment and exit costs 61 - 3 34 98Operating income 1,119 1,027 1,222 1,005 4,373Interest and other debt expense, net 104 59 27 15 205Equity earnings in SABMiller (98) (162) (132) (118) (510)Earnings from continuing operations before income taxes 1,113 1,130 1,327 1,108 4,678Provision for income taxes 417 415 427 288 1,547Earnings from continuing operations 696 715 900 820 3,131Earnings from discontinued operations, net of income taxes and minority interest 2,054 1,500 1,733 1,368 6,655Net earnings 2,750$ 2,215$ 2,633$ 2,188$ 9,786$

Per share data: (*)Basic earnings per share:Continuing operations 0.33$ 0.34$ 0.43$ 0.39$ 1.49$Discontinued operations 0.98 0.71 0.82 0.65 3.17Net earnings 1.31$ 1.05$ 1.25$ 1.04$ 4.66$

Diluted earnings per share:Continuing operations 0.33$ 0.34$ 0.43$ 0.39$ 1.48$Discontinued operations 0.97 0.71 0.81 0.64 3.14Net earnings 1.30$ 1.05$ 1.24$ 1.03$ 4.62$

Weighted average number of shares outstanding:Basic 2,097 2,101 2,103 2,104 2,101Diluted 2,112 2,116 2,117 2,119 2,116

(*) Basic and diluted earnings per share are computed independently for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year.

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Condensed Consolidated Statements of EarningsRevised for Discontinued Operations

for the quarters ended March 31, June 30, September 30, and December 31, 2006(in millions of dollars, except per share data)

(Unaudited)

Q1 2006Revised Q2 2006 Revised

Q3 2006Revised

Q4 2006Revised

2006 Full YearRevised

Net revenues 4,431$ 4,840$ 4,939$ 4,580$ 18,790$Cost of sales 1,735 1,888 1,921 1,843 7,387Excise taxes on products 855 931 938 893 3,617Gross profit 1,841 2,021 2,080 1,844 7,786Marketing, administration and research costs 629 676 709 672 2,686Asset impairment and exit costs - - - 10 10Provision for airline industry exposure - 103 - - 103Operating companies income 1,212 1,242 1,371 1,162 4,987General corporate expenses 96 102 110 119 427Corporate asset impairment and exit costs - 32 3 7 42Operating income 1,116 1,108 1,258 1,036 4,518Interest and other debt expense, net 104 74 25 22 225Equity earnings in SABMiller (116) (112) (109) (123) (460)Earnings from continuing operations before income taxes 1,128 1,146 1,342 1,137 4,753Provision for income taxes 254 440 504 373 1,571Earnings from continuing operations 874 706 838 764 3,182Earnings from discontinued operations, net of income taxes and minority interest 2,603 2,005 2,037 2,195 8,840Net earnings 3,477$ 2,711$ 2,875$ 2,959$ 12,022$

Per share data: (*)Basic earnings per share:Continuing operations 0.42$ 0.34$ 0.40$ 0.37$ 1.52$Discontinued operations 1.25 0.96 0.98 1.04 4.24Net earnings 1.67$ 1.30$ 1.38$ 1.41$ 5.76$

Diluted earnings per share:Continuing operations 0.42$ 0.34$ 0.40$ 0.36$ 1.51$Discontinued operations 1.23 0.95 0.96 1.04 4.20Net earnings 1.65$ 1.29$ 1.36$ 1.40$ 5.71$

Weighted average number of shares outstanding:Basic 2,082 2,085 2,090 2,092 2,087Diluted 2,101 2,102 2,107 2,110 2,105

(*) Basic and diluted earnings per share are computed independently for each of the periods presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year.

5


Condensed Consolidated Balance Sheets(in millions of dollars)

(Unaudited)

March 31, December 31,2008 2007

AssetsCash and cash equivalents 4,813$ 4,842$Other current assets 3,822 3,281Property, plant and equipment, net 2,207 2,422Goodwill and other intangible assets, net 3,125 3,125Investment in SABMiller 4,126 3,960Other long-term assets 1,868 1,782Total assets of discontinued operations - 31,736Total consumer products assets 19,961 51,148Total financial services assets 5,886 6,063Total assets 25,847$ 57,211$

Liabilities and Stockholders' EquityCurrent portion of long-term debt 1,269 2,354Accrued settlement charges 5,167 3,986Other current liabilities 4,656 4,169Long-term debt 236 1,885Accrued postretirement health care costs 1,872 1,916Other long-term liabilities 2,400 2,406Total liabilities of discontinued operations - 16,338Total consumer products liabilities 15,600 33,054Total financial services liabilities 5,539 5,603Total liabilities 21,139 38,657Total stockholders' equity 4,708 18,554

Total liabilities and stockholders' equity 25,847$ 57,211$

Total consumer products debt 1,505$ 4,239$Total debt 2,005$ 4,739$

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7

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The XBRL 2.1 instance document.Double click to open, or right click for menu.

Condensed Statement Earnings link:presentationLink link:calculationLink Revenue By Business Segment link:presentationLink Operating Companies Income By Business Segment link:presentationLink Balance Sheets link:presentationLink link:calculationLink Net Earnings link:presentationLink Diluted Earnings Per Share link:presentationLink

An extension taxonomy schema.Double click to open, or right click for menu.

An extension taxonomy linkbase.Double click to open, or right click for menu.


Accrued Settlement Charges Acquired Businesses, Operating Companies Income Acquired Businesses, Net Revenues Acquired Businesses, Operating Revenue Asset Impairment, Exit and Implementation Costs, Net Minority Interest Impact Balance Sheet Basic Earnings Per Share, Continuing Operations Change in Shares, Continuing Earnings Change in Tax Rate, Continuing Earnings Asset Impairment and Exit Costs, Operating Companies Income Operating Expenses, Companies Operating Companies Income Companies Operating Profit Reconciliation Consumer Products Assets, Total Consumer Products Liabilities, Total Continuing Earnings Reconciliation Asset Impairment and Exit Costs, Corporate Asset Impairment and Exit Costs, Companies Asset Impairment and Exit Costs, Continuing Earnings General Expenses, Corporate Operating Expenses, Corporate Currency, Operating Companies Income Currency, Continuing Earnings Currency, Net Revenues Diluted Earnings Per Share, Continuing Operations Diluted Earnings Per Share, Discontinued Operations Divested Businesses, Net Revenues Divested Businesses, Operating Companies Income Excise Taxes on Products Financial Services Assets, Total Financial Services Liabilities, Total Domestic Tobacco Headquarters Relocation Charges Domestic Tobacco Headquarters Relocation Charges, Continuing Earnings Implementation Costs, Operating Companies Income Implementation, Net Revenues Income/(Loss) from Continuing Operations After Minority Interest Income (Loss) Continuing Operations After Minority Interest Reconciliation, Total Earnings from continuing operations before income taxes International Agreements International Agreements Income (Loss) Continuing Operations After Minority Interest Investment Impairment, Net Minority Interest Impact Investment Impairment, Operating Companies Income Italian Antitrust Charge Italian Antitrust Charge, Operating Companies Income Long Term Deferred Income Taxes Liability (Gains) on sales of businesses Losses on Sales of Businesses, Operating Companies Income Losses on Sales of Businesses, Net of Minority Interest Impact Loss on Sales of Businesses, Net of Minority Interest Impact, Diluted EPS Gains on Sales of Businesses, Operating Companies Income Marketing, Administration and Research Costs Equity earnings and minority interest, net Operations, Operating Companies Income Operations, Continuing Earnings Operations, Net Revenues Other Intangible Assets Excluding Goodwill, Net Provision for airline industry exposure Provision Airline Industry Exposure, Continuing Earnings Domestic Tobacco Quota Buy-Out Revenue Reconciliation Tax Items, Net Minority Interest Impact Tobacco Pool Operating Companies Income Reconciliation, Total Basic Earnings Per Share, Discontinued Operations Asset Impairment, Exit and Implementation Costs, Net Minority Interest Impact, Diluted EPS Change in Shares, Continuing Earnings, Diluted EPS Change in Tax rate, Continuing Earnings, Diluted EPS Total consumer products debt Asset Impairment and Exit Costs, Continuing Earnings, Diluted EPS Currency, Continuing Earnings, Diluted EPS Debt/equity ratio - consumer products Total debt/equity ratio Total debt Domestic Tobacco Headquarters Relocation Charges, Continuing Earnings, Diluted EPS Income/ (Loss) from Continuing Operations After Minority Interest, Diluted EPS Income/ (Loss) Continuing Operations After Minority Interest, Reconciliation Total, Diluted EPS Income/ (Loss) Discontinued Operations, Net Tax Effect, Diluted EPS Italian Antitrust Charge, Diluted EPS Net Income, Diluted EPS Operations, Continuing Earnings, Diluted EPS Tax Items, Net Minority Interest Impact, Diluted EPS Currency Increased International Tobacco Excise Taxes Domestic Tobacco Headquarters Relocation Charges, Operating Companies Income Italian Antitrust Charge, Continuing Earnings Provision for Airline Industry Exposure, Operating Companies Income Provision for airline industry exposure, Diluted EPS Domestic Tobacco Loss on U.S. Tobacco Pool Domestic Tobacco Loss on U.S Tobacco Pool, Operating Companies Income Domestic Tobacco Quota Buy-Out, Operating Companies Income

Domestic Tobacco Loss on U.S. Tobacco Pool , Continuing Earnings Domestic Tobacco Quota Buy-Out, Continuing Earnings Gains (Losses) on Sales of Businesses, Net of Minority Interest Impact Domestic Tobacco Loss on U.S. Tobacco Pool, Diluted EPS

Domestic Tobacco Quota Buy-Out, Diluted EPS

Gain on Redemption of United Biscuits Investment, Net of Minority Interest Impact, Diluted EPS

Gain on redemption of United Biscuits Investment, Operating Companies Income Gain on redemption of United Biscuits investment Italian antitrust charge, Net Revenues Italian antitrust charge, Net Revenues Asset impairment and exit costs, Net Revenues Asset impairment and exit costs, Net Revenues Recoveries for airline industry exposure, Net Revenues Recoveries for airline industry exposure, Net Revenues Recoveries from airline industry exposure, Operating Companies Income Net Revenues Reconciliation, Total Interest on tax reserve transfers to Kraft, Continuing Earnings Recoveries from airline industry exposure, Continuing Earnings Discontinued Earnings Discontinued Earnings Interest on tax reserve transfers to Kraft, Diluted EPS Recoveries from airline industry exposure, Diluted EPS Continuing Earnings Adjusted For Special Items Continuing Earnings Excluding Special Items, Diluted EPS Recoveries from airline industry exposure Earnings from continuing operations Loss on early extinguishment of debt Loss on early extinguishment of debt Integration costs, Net Revenues Integration costs, Net Revenues Integration Costs, Operating Companies Income Integration Costs, Operating Companies Income Goodwill and other intangible assets, net Goodwill Gain (Loss) on Sale of Property, Plant & Equipment Gain (Loss) on Sale of Property, Plant & Equipment Earnings (Losses) from Equity Investments Earnings (Losses) from Equity Investments Loss on early extinguishment of debt, Diluted EPS Loss on early extinguishment of debt, Diluted EPS Net Income, Diluted EPS Other Long-Term Assets Other Long-Term Assets Gain on Sale of Corporate Headquarters Building,ContinuingEarnings Gain on Sale of Corporate Headquarters Building,ContinuingEarnings Gain on Sale of Corporate Headquarters Building, Diluted EPS Gain on Sale of Corporate Headquarters Building, Diluted EPS


Net revenuesCost of salesExcise taxes on products (*)Gross profitMarketing, administration and research costsAsset impairment and exit costsRecoveries from airline industry exposureOperating companies incomeAmortization of intangiblesGeneral corporate expensesGain on sale of corporate headquarters buildingCorporate asset impairment and exit costsOperating incomeInterest and other debt (income) expense, netLoss on early extinguishment of debtEquity earnings in SABMillerEarnings from continuing operations before income taxesProvision for income taxesEarnings from continuing operationsEarnings from discontinued operations,net of income taxes and minority interestNet earningsPer share data:Basic earnings per share:Continuing operationsDiscontinued operationsNet earningsDiluted earnings per share:Continuing operationsDiscontinued operationsNet earningsWeighted average number of shares outstanding:BasicDiluted(*) The segment detail of excise taxes on products sold is shown in Schedule 2.

20082007% ChangeReconciliation:For the quarter ended March 31, 2007Recoveries from airline industry exposure - 2007Asset impairment and exit costs - 2008Integration costs - 2008Implementation costs - 2008Acquired businessOperationsFor the quarter ended March 31, 2008The detail of excise taxes on products sold is as follows:2008.02007.0

2008 Continuing Earnings2007 Continuing Earnings% ChangeReconciliation:2007 Continuing Earnings2007 Asset impairment and exit costs2007 Interest on tax reserve transfers to Kraft2007 Recoveries from airline industry exposure2008 Asset impairment, exit, integration and implementation costs2008 Gain on sale of corporate headquarters building2008 Loss on early extinguishment of debtChange in tax rateOperations2008 Continuing Earnings2008 Discontinued Earnings2008 Net Earnings2008 Continuing Earnings Adjusted For Special Items2007 Continuing Earnings Adjusted For Special Items% Change

Net revenuesCost of salesExcise taxes on productsGross profitMarketing, administration and research costsAsset impairment and exit costsRecoveries from airline industry exposureOperating companies incomeGeneral corporate expensesCorporate asset impairment and exit costsOperating incomeInterest and other debt expense, netEquity earnings in SABMillerEarnings from continuing operations before income taxesProvision for income taxesEarnings from continuing operationsEarnings from discontinued operations, net ofincome taxes and minority interestNet earningsPer share data: (*)Basic earnings per share:Continuing operationsDiscontinued operationsNet earningsDiluted earnings per share:Continuing operationsDiscontinued operationsNet earningsWeighted average number of shares outstanding:BasicDiluted(*) Basic and diluted earnings per share are computed independently for each of the periods presented. Accordingly,the sum of the quarterly earnings per share amounts may not agree to the total for the year.

Net revenuesCost of salesExcise taxes on productsGross profitMarketing, administration and research costsAsset impairment and exit costsProvision for airline industry exposureOperating companies incomeGeneral corporate expensesCorporate asset impairment and exit costsOperating incomeInterest and other debt expense, netEquity earnings in SABMillerEarnings from continuing operations before income taxesProvision for income taxesEarnings from continuing operationsEarnings from discontinued operations, net ofincome taxes and minority interestNet earningsPer share data: (*)Basic earnings per share:Continuing operationsDiscontinued operationsNet earningsDiluted earnings per share:Continuing operationsDiscontinued operationsNet earningsWeighted average number of shares outstanding:BasicDiluted(*) Basic and diluted earnings per share are computed independently for each of the periods presented. Accordingly,the sum of the quarterly earnings per share amounts may not agree to the total for the year.

AssetsCash and cash equivalentsOther current assetsProperty, plant and equipment, netGoodwill and other intangible assets, netInvestment in SABMillerOther long-term assetsTotal assets of discontinued operationsTotal consumer products assetsTotal financial services assetsTotal assetsLiabilities and Stockholders' EquityCurrent portion of long-term debtAccrued settlement chargesOther current liabilitiesLong-term debtAccrued postretirement health care costsOther long-term liabilitiesTotal liabilities of discontinued operationsTotal consumer products liabilitiesTotal financial services liabilitiesTotal liabilitiesTotal stockholders' equityTotal liabilities and stockholders' equityTotal consumer products debtTotal debt

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news release...2008/03/31 · news release altria group, inc. (altria) reports 2008 first-quarter...

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