Group 1 - The company focuses on GARP (growth at a reasonable price) stocks while also exploring other investment opportunities [1] - The investment strategy is based on the validity of the investment thesis, with no specified time horizon for holding stocks [1] - The company has developed market-beating algorithms using Python to identify attractive investment opportunities within its portfolio since 2016 [1] Group 2 - The company has experience working at TipRanks as an analysis/news writer and editor, which has enhanced its market awareness and understanding of reader interests [2] - Attention to detail has been emphasized, with a recognition of the prevalence of misinformation and "fluff" in the market [2] - The goal of the company is to provide accurate and useful information to its audience [2] Group 3 - The company was previously associated with Investor's Compass [3]

Smoking doesn't align with my personal values.Dividends are a big part of my investment strategy. I prefer to invest in companies that offer attractive and growing dividends. I like to collect passive income, and dividend growers are proven wealth creators. Given all this, Altria Group (MO 7.84%) would seem to be the perfect stock for me. The company currently pays a dividend yielding more than 8%. Meanwhile, it has increased its payment 59 times over the last 55 years, a trend it expects will continue thro ...

The market was clearly impressed how management is coping with the company's challenging situation.On Thursday, good news from one of the market's favorite "sin stocks" drove its share price up by almost 8%. This lucky company was Altria (MO 7.84%); the cigarette maker's latest quarterly earnings report was received most favorably by market players. The stock's pop on the day was in market contrast to the 1.9% slump of the benchmark S&P 500 index.Slight increases and modest beatsThat morning, Altria release ...

Financial Data and Key Metrics Changes - Altria reported adjusted diluted earnings per share (EPS) growth of 7.8% in Q3 2024 and 1.6% for the first nine months, reaffirming full-year adjusted diluted EPS guidance in the range of $5.07 to $5.15, representing a growth rate of 2.5% to 4% from a base of $4.95 in 2023 [32][45] - Adjusted operating company's income (OCI) for the Smokable Products segment grew by 7.1% in Q3 and 0.9% for the first nine months, with adjusted OCI margins expanding to 63.1% for Q3 [33][34] - The company paid approximately $1.7 billion in dividends and repurchased 13.5 million shares for $680 million in Q3 2024 [45] Business Line Data and Key Metrics Changes - The Smokable Products segment saw domestic cigarette volumes decline by 8.6% in Q3 and 10.6% for the first nine months, with adjusted domestic cigarette volumes declining by an estimated 11.5% in Q3 [35][36] - The Oral Tobacco Products segment reported adjusted OCI growth of 2% in Q3 and 2.7% for the first nine months, with strong margins at 66.8% for Q3 [39] - NJOY consumables shipment volume grew more than 15% to 10.4 million units in Q3, with device shipment volume nearly tripling to 1.1 million units [15][16] Market Data and Key Metrics Changes - The e-vapor category included approximately 19 million adult vapors, up 2.5 million from the previous year, with illicit disposable products driving category growth [16][17] - The oral nicotine pouches category grew 11.4 share points, now representing nearly 44% of the category, contributing to a 7.5% increase in oral tobacco industry volume over the past six months [23] - The discount segment share grew by 1.5 share points in Q3, while Marlboro's retail share of the premium segment increased to 59.3% [37] Company Strategy and Development Direction - Altria is launching a multiphase initiative to modernize operations, aiming for at least $600 million in cumulative cost savings over the next five years [27][29] - The company continues to focus on transitioning adult smokers to smoke-free products, emphasizing the importance of regulatory support and enforcement against illicit products [30][19] - Altria's strategy includes maximizing profitability in the Smokable Products segment while investing in smoke-free product growth [33][66] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing economic pressures on consumers, impacting discretionary income and cigarette consumption [36][50] - The company remains optimistic about the potential of NJOY and on! brands, with plans to continue testing and investing in these smoke-free products [12][24] - Management expressed confidence in the company's ability to navigate regulatory challenges and litigation, particularly regarding NJOY's patent issues with Juul [20][70] Other Important Information - Altria recorded $144 million of adjusted equity earnings from its investment in ABI, reflecting a 0.7% increase year-over-year [42] - The company has ongoing litigation regarding patent infringement claims against NJOY, with a final determination expected by late December [21][68] - Altria's total debt to EBITDA ratio was 2.1 times as of September 30, aligning with its target of approximately two times [46] Q&A Session Summary Question: Guidance for Q4 and factors affecting it - Management acknowledged the benefit from the MSA legal fee expiration and an extra shipping day in Q4, contributing to their guidance [48][49] Question: Discount category share dynamics - Management noted economic strain on consumers is influencing category movements, with some consumers shifting to discount brands [50][51] Question: Maintaining guidance despite strong Q3 - Management explained that the dynamic market conditions and the impact of illicit products influenced their decision to maintain guidance [53][55] Question: Patent infringement lawsuit against NJOY - Management provided updates on the SE applications and ongoing negotiations with Juul, expressing confidence in avoiding patent infringement [70][71] Question: EBIT margin performance in smokables division - Management confirmed controllable costs were down due to timing factors and advised against extrapolating this performance over the long term [72][74] Question: Expectations for heated tobacco category - Management expects e-vapor to remain the largest category, with ongoing monitoring of the heated tobacco segment [76]

Altria Group Inc. (MO) posted third-quarter 2024 results, wherein the bottom line improved year over year and beat the Zacks Consensus Estimate, whereas revenues dipped due to the smokeable products segment.  However, the smokeable products segment saw robust operating income growth, driven by Marlboro's strong performance. In the oral tobacco category, MST brands sustained profitability, and on! continued its upward momentum in the market. Along with the earnings release, Altria has unveiled a new initiati ...

Altria Group, Inc. (NYSE: MO ) has just released its FY 2024 Q3's results as Seeking Alpha has covered here . While pre-market price action can be fickle, it looks like Altria investors are set for a day Dividends (DGI and DRIP) and Growth at reasonable price (GARP) for Long-term. Serious money.Fun trading for short-term. Play money.Ideas and thoughts presented in the articles are not professional recommendations. Analyst's Disclosure: I/we have a beneficial long position in the shares of MO either through ...

Altria (MO) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.47%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.35 per share when it actually produced earnings of $1.31, delivering a surprise of -2. ...

Altria's Third-Quarter and Nine-Months 2024 Earnings Conference Call October 31, 2024 FAMILY OF COMPANI 1 | ALCS | Q3 2024 | 10.31.24 | For Investor Purposes ONLY Safe Harbor Statement Statements, including earnings guidance, in this presentation that are not reported financial results or other historical information are "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, ...

PART I - FINANCIAL INFORMATION This part presents Altria Group, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Altria Group, Inc.'s unaudited condensed consolidated financial statements and related notes for the reported periods [Condensed Consolidated Balance Sheets](index=3&type=page&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position at specific dates, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (in millions of dollars) | Metric | Dec 31, 2023 | Sep 30, 2024 | Change | | :----- | :----------- | :----------- | :----- | | Cash and cash equivalents | $3,686 | $1,897 | $(1,789) | | Total current assets | $5,585 | $3,499 | $(2,086) | | Investments in equity securities | $10,011 | $8,153 | $(1,858) | | Total Assets | $38,570 | $34,167 | $(4,403) | | Current portion of long-term debt | $1,121 | $1,585 | $464 | | Deferred gain from IQOS sale | $2,700 | $0 | $(2,700) | | Total current liabilities | $11,319 | $7,996 | $(3,323) | | Long-term debt | $25,112 | $23,570 | $(1,542) | | Total Liabilities | $42,060 | $37,585 | $(4,475) | | Total Stockholders' Equity (Deficit) | $(3,490) | $(3,418) | $72 | [Condensed Consolidated Statements of Earnings](index=5&type=page&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Details the company's revenues, expenses, and net earnings over specific periods Condensed Consolidated Statements of Earnings (in millions of dollars, except per share data) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net revenues | $18,044 | $18,508 | $6,259 | $6,281 | | Cost of sales | $4,575 | $4,693 | $1,536 | $1,578 | | Excise taxes on products | $2,706 | $3,030 | $915 | $1,004 | | Gross profit | $10,763 | $10,785 | $3,808 | $3,699 | | Marketing, administration and research costs | $2,050 | $2,034 | $656 | $610 | | Asset impairment | $354 | $0 | $0 | $0 | | Operating income | $8,359 | $8,751 | $3,152 | $3,089 | | Interest and other debt expense, net | $782 | $758 | $267 | $272 | | Net periodic benefit income, excluding service cost | $(74) | $(95) | $(25) | $(33) | | (Income) losses from investments in equity securities | $(530) | $(105) | $(116) | $(58) | | Gain on the sale of IQOS System commercialization rights | $(2,700) | $0 | $0 | $0 | | Earnings before income taxes | $10,881 | $8,193 | $3,026 | $2,908 | | Provision for income taxes | $2,656 | $2,123 | $733 | $742 | | Net earnings | $8,225 | $6,070 | $2,293 | $2,166 | | Basic and diluted earnings per share | $4.75 | $3.40 | $1.34 | $1.22 | [Condensed Consolidated Statements of Comprehensive Earnings](index=6&type=page&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Earnings) Reports net earnings and other comprehensive earnings (losses) for the reported periods Condensed Consolidated Statements of Comprehensive Earnings (in millions of dollars) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net earnings | $8,225 | $6,070 | $2,293 | $2,166 | | Other comprehensive earnings (losses), net of deferred income taxes | $56 | $300 | $(334) | $238 | | Comprehensive earnings | $8,281 | $6,370 | $1,959 | $2,404 | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=7&type=page&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Shows changes in stockholders' equity (deficit) over the reported periods Changes in Stockholders' Equity (Deficit) (in millions of dollars) | Metric | Dec 31, 2023 Balance | Net Earnings | Other Comprehensive Earnings (Losses) | Cash Dividends Declared | Repurchases of Common Stock | Sep 30, 2024 Balance | | :----- | :------------------- | :----------- | :------------------------------------ | :---------------------- | :-------------------------- | :------------------- | | Total Stockholders' Equity (Deficit) attributable to Altria | $(3,490) | $8,225 | $56 | $(5,113) | $(3,090) | $(3,418) | [Condensed Consolidated Statements of Cash Flows](index=9&type=page&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in millions of dollars) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $5,413 | $6,060 | | Net cash provided by (used in) investing activities | $2,238 | $(1,217) | | Net cash provided by (used in) financing activities | $(9,444) | $(7,353) | | Increase (decrease) in cash, cash equivalents and restricted cash | $(1,793) | $(2,510) | | Balance at end of period | $1,928 | $1,581 | [Notes to Condensed Consolidated Financial Statements](index=11&type=page&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, significant transactions, and financial positions supporting the consolidated financial statements [Note 1. Background and Basis of Presentation](index=11&type=page&id=Note%201.%20Background%20and%20Basis%20of%20Presentation) Outlines Altria's corporate structure, dividend policy, and share repurchase programs - **Altria's** wholly-owned subsidiaries include **PM USA** (cigarettes), Middleton (cigars), **USSTC** (moist smokeless tobacco, snus), **Helix** (oral nicotine pouches), and **NJOY** (e-vapor products)[28](index=28&type=chunk) - The Board of Directors approved a **4.1%** increase in the quarterly dividend rate to **$1.02 per share**, resulting in an annualized dividend rate of **$4.08 per share**[28](index=28&type=chunk) - A new **$3.4 billion** share repurchase program was authorized in January **2024** (increased in March **2024**), with **$2.4 billion** executed through **Accelerated Share Repurchase** (**ASR**) transactions, funded by proceeds from the **ABI Transaction**[28](index=28&type=chunk) Share Repurchase Activity (in millions, except per share data) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total number of shares repurchased | 67.6 | 16.3 | 13.5 | 5.9 | | Aggregate cost of shares repurchased | $3,090 | $732 | $680 | $260 | | Average price per share | $45.68 | $44.97 | $50.37 | $44.26 | [Note 2. Acquisition of NJOY](index=12&type=page&id=Note%202.%20Acquisition%20of%20NJOY) Details the acquisition of NJOY, including purchase price, contingent payments, and goodwill allocation - **Altria** acquired **NJOY Holdings** for approximately **$2.9 billion**, comprising **$2.75 billion** in cash and up to **$500 million** in contingent payments tied to **FDA** authorizations[31](index=31&type=chunk) - **FDA** marketing granted orders for four **NJOY** menthol e-vapor products in Q2 **2024** triggered a **$250 million** cash payment, and a pre-tax charge of approximately **$140 million** was recorded for the change in fair value of contingent payments[31](index=31&type=chunk) NJOY Transaction Costs (in millions) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Change in fair value of contingent payments | $140 | $0 | $0 | $0 | | Other costs (primarily acquisition-related patent infringement lawsuits) | $47 | $54 | $44 | $13 | | Financing fees | $0 | $9 | $0 | $1 | | Total NJOY Transaction costs | $187 | $63 | $44 | $14 | - The final purchase price allocation for **NJOY** resulted in **$1,768 million** in goodwill, primarily reflecting the value of future growth opportunities in the e-vapor category[33](index=33&type=chunk)[35](index=35&type=chunk) [Note 3. Revenues from Contracts with Customers](index=13&type=page&id=Note%203.%20Revenues%20from%20Contracts%20with%20Customers) Explains revenue recognition policies and presents receivables and deferred revenue - Cash discounts for **PM USA** and **USSTC** changed from a flat rate per unit to a percentage of the list price in Q1 **2024**[36](index=36&type=chunk) Receivables and Deferred Revenue (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Receivables | $87 | $71 | | Deferred revenue | $218 | $258 | [Note 4. Supplier Financing](index=14&type=page&id=Note%204.%20Supplier%20Financing) Describes Altria's voluntary supplier financing program and outstanding obligations - **Altria** facilitates a voluntary supplier financing program, guaranteeing **ALCS's** obligations to participating financial institutions[39](index=39&type=chunk)[105](index=105&type=chunk) - Confirmed outstanding obligations under the program were **$115 million** at September **30, 2024**, down from **$119 million** at December **31, 2023**[39](index=39&type=chunk) [Note 5. Goodwill and Other Intangible Assets, net](index=14&type=page&id=Note%205.%20Goodwill%20and%20Other%20Intangible%20Assets,%20net) Reports on goodwill and other intangible assets, including impairment charges and amortization Goodwill and Other Intangible Assets, net (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Goodwill | $6,945 | $6,791 | | Other intangible assets, net | $13,010 | $13,686 | - A non-cash, pre-tax impairment of **$354 million** was recorded on the **Skoal** trademark in Q2 **2024** due to lower projected revenue and income from declining MST sales volumes, a decrease in perpetual growth rate, and an increase in the discount rate[44](index=44&type=chunk)[45](index=45&type=chunk) - A pre-tax gain of **$2.7 billion** was recorded for the nine months ended September **30, 2024**, from the assignment of **IQOS System** commercialization rights to PMI[43](index=43&type=chunk) - Annualized amortization expense for definite-lived intangible assets is estimated to be approximately **$150 million** for each of the next five years[43](index=43&type=chunk) [Note 6. Investments in Equity Securities](index=16&type=page&id=Note%206.%20Investments%20in%20Equity%20Securities) Details Altria's investments in ABI and Cronos, including sales and ownership interests Carrying Amount of Investments (in millions) | Investment | Sep 30, 2024 | Dec 31, 2023 | | :--------- | :----------- | :----------- | | ABI | $7,846 | $9,676 | | Cronos | $307 | $335 | | Total | $8,153 | $10,011 | - In March **2024**, **Altria** sold **35 million** ordinary shares of **ABI** and **3.3 million** ordinary shares to **ABI** in a private transaction, generating approximately **$2.4 billion** in gross proceeds[49](index=49&type=chunk) Pre-tax Gain on ABI Transaction (in millions) | Metric | 9 Months Ended Sep 30, 2024 | | :----- | :-------------------------- | | Gain on partial sale of investment | $165 | | Transaction costs | $(62) | | Total pre-tax gain | $103 | - **Altria** maintains an approximate **8.1%** ownership interest in **ABI** and a **41.0%** ownership interest in **Cronos**, both accounted for using the equity method[49](index=49&type=chunk)[50](index=50&type=chunk) - In March **2023**, **Altria** disposed of its **JUUL** equity securities, recording a non-cash, pre-tax loss of **$250 million**[51](index=51&type=chunk) [Note 7. Financial Instruments](index=18&type=page&id=Note%207.%20Financial%20Instruments) Discusses Altria's use of financial instruments, including foreign currency hedges and debt fair values - **Altria** uses foreign currency denominated debt as net investment hedges for its **ABI** investment to mitigate foreign currency exchange risk[52](index=52&type=chunk) Long-term Debt Carrying and Fair Value (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Carrying value | $25,155 | $26,233 | | Fair value | $24,031 | $24,373 | | Foreign currency denominated debt (carrying value) | $3,334 | $3,303 | | Foreign currency denominated debt (fair value) | $3,274 | $3,125 | - Pre-tax gains of **$29 million** from net investment hedges were recognized in accumulated other comprehensive losses for the nine months ended September **30, 2024**[54](index=54&type=chunk) [Note 8. Benefit Plans](index=19&type=page&id=Note%208.%20Benefit%20Plans) Presents net periodic benefit costs and employer contributions for pension and postretirement plans Net Periodic Benefit Cost (Income) (in millions) | Metric | 9 Months Ended Sep 30, 2024 (Pension) | 9 Months Ended Sep 30, 2023 (Pension) | 9 Months Ended Sep 30, 2024 (Postretirement) | 9 Months Ended Sep 30, 2023 (Postretirement) | | :----- | :------------------------------------ | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Service cost | $31 | $29 | $11 | $11 | | Interest cost | $242 | $250 | $46 | $49 | | Expected return on plan assets | $(349) | $(364) | $(4) | $(5) | | Net periodic benefit cost (income) | $(51) | $(78) | $19 | $23 | - Employer contributions of **$13 million** were made to pension plans during the nine months ended September **30, 2024**, with an anticipation of up to **$5 million** more in **2024**[57](index=57&type=chunk) [Note 9. Earnings per Share](index=19&type=page&id=Note%209.%20Earnings%20per%20Share) Provides detailed calculations for basic and diluted earnings per share Earnings per Share Data (in millions, except per share data) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net earnings | $8,225 | $6,070 | $2,293 | $2,166 | | Earnings for basic and diluted EPS | $8,205 | $6,058 | $2,287 | $2,161 | | Weighted-average shares for basic and diluted EPS | 1,726 | 1,780 | 1,703 | 1,773 | | Basic and diluted EPS | $4.75 | $3.40 | $1.34 | $1.22 | [Note 10. Other Comprehensive Earnings/Losses](index=20&type=page&id=Note%2010.%20Other%20Comprehensive%20Earnings/Losses) Details changes in accumulated other comprehensive losses and reclassifications to net earnings Changes in Accumulated Other Comprehensive Losses (in millions) | Component | Dec 31, 2023 Balance | 9 Months Ended Sep 30, 2024 Change | Sep 30, 2024 Balance | | :-------- | :------------------- | :--------------------------------- | :------------------- | | Benefit Plans | $(1,493) | $(4) | $(1,497) | | ABI | $(1,195) | $64 | $(1,131) | | Currency Translation Adjustments and Other | $15 | $(4) | $11 | | Total Accumulated Other Comprehensive Losses | $(2,673) | $56 | $(2,617) | Pre-tax Reclassifications from Accumulated Other Comprehensive Losses to Net Earnings (in millions) | Component | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :-------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Benefit Plans | $(5) | $(21) | $(2) | $(7) | | ABI | $258 | $(5) | $1 | $(14) | | Total | $253 | $(26) | $(1) | $(21) | [Note 11. Segment Reporting](index=22&type=page&id=Note%2011.%20Segment%20Reporting) Outlines Altria's reportable segments and their respective net revenues and operating income - **Altria's** reportable segments are smokeable products (cigarettes, machine-made large cigars) and oral tobacco products (MST, snus, oral nicotine pouches). The "all other" category includes **NJOY**, Horizon, **Helix** International, and R&D for new product platforms[67](index=67&type=chunk) Segment Net Revenues and OCI (in millions) | Metric | 9 Months Ended Sep 30, 2024 (Net Revenues) | 9 Months Ended Sep 30, 2023 (Net Revenues) | 9 Months Ended Sep 30, 2024 (OCI) | 9 Months Ended Sep 30, 2023 (OCI) | | :----- | :----------------------------------------- | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Smokeable products | $15,941 | $16,482 | $8,183 | $8,092 | | Oral tobacco products | $2,084 | $1,993 | $996 | $1,314 | | All other | $19 | $33 | $(291) | $(17) | | Total Net Revenues | $18,044 | $18,508 | | | | Total Operating Income | | | $8,359 | $8,751 | - The oral tobacco products segment recorded a non-cash, pre-tax impairment of **$354 million** on the **Skoal** trademark for the nine months ended September **30, 2024**[70](index=70&type=chunk) - R&D expense for certain new product platforms and technologies is now primarily recorded in the "all other" category, totaling **$165 million** for the nine months ended September **30, 2024**[73](index=73&type=chunk) [Note 12. Debt](index=24&type=page&id=Note%2012.%20Debt) Reports on Altria's short-term and long-term debt, including credit facilities and compliance - **Altria** had no short-term borrowings at September **30, 2024**[74](index=74&type=chunk) - Total long-term debt decreased from **$26.2 billion** at December **31, 2023**, to **$25.2 billion** at September **30, 2024**, with **$1,121 million** repaid in Q1 **2024**[74](index=74&type=chunk) - **Altria** maintains a **$3.0 billion** senior unsecured **5-year** revolving credit agreement and was in compliance with all covenants, including a **Consolidated EBITDA** to **Consolidated Interest Expense** ratio of not less than **4.0 to 1.0**[74](index=74&type=chunk) [Note 13. Income Taxes](index=25&type=page&id=Note%2013.%20Income%20Taxes) Presents income tax data, rates, and significant tax benefits or charges Income Tax Data (in millions) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Earnings before income taxes | $10,881 | $8,193 | $3,026 | $2,908 | | Provision for income taxes | $2,656 | $2,123 | $733 | $742 | | Income tax rate | 24.4% | 25.9% | 24.2% | 25.5% | - The income tax rate decreased due to an income tax benefit from the partial release of a valuation allowance on **JUUL**-related losses, triggered by the capital gain on the **ABI Transaction**[76](index=76&type=chunk)[77](index=77&type=chunk) - An agreement with the **IRS** in October **2024** is expected to result in a **$0.9 billion** tax benefit in Q4 **2024** from the reversal of an unrecognized tax benefit related to **JUUL** losses[78](index=78&type=chunk)[79](index=79&type=chunk) [Note 14. Contingencies](index=26&type=page&id=Note%2014.%20Contingencies) Details Altria's legal proceedings, including product liability, e-vapor, and patent infringement cases - **Altria** faces various legal proceedings, including product liability, health care cost recovery, e-vapor, and patent infringement cases[80](index=80&type=chunk) Accrued Liability for Litigation Items (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Accrued liability at beginning of period | $346 | $71 | | Pre-tax charges for tobacco and health and certain other litigation | $59 | $75 | | Pre-tax charges for JUUL-related settlements | $30 | $240 | | Related interest costs | $1 | $11 | | Payments | $(300) | $(122) | | Accrued liability at end of period | $136 | $373 | - As of October **28, 2024**, **178** individual smoking and health cases, **1** health care cost recovery action, and **75** e-vapor cases were pending against **Altria**[85](index=85&type=chunk) - In May **2023**, **Altria** settled the majority of **Multidistrict Litigation** lawsuits related to **JUUL** e-vapor products for **$235 million**, with final approval granted in March **2024**. A separate settlement for Native American tribes was agreed upon in July **2024** for **$20 million**[98](index=98&type=chunk) - **NJOY** is involved in patent infringement lawsuits regarding **NJOY ACE**, with an **ALJ** issuing an initial determination supporting plaintiffs' allegations for four patents in August **2024**, recommending an exclusion order. The **ITC** is expected to issue its final determination by December **23, 2024**[99](index=99&type=chunk) [Note 15. New Accounting Guidance Not Yet Adopted](index=37&type=page&id=Note%2015.%20New%20Accounting%20Guidance%20Not%20Yet%20Adopted) Identifies upcoming accounting standards that will impact future financial disclosures - **ASU 2023-07** (Segment Reporting) will require expanded footnote disclosures for segment information, effective for fiscal years beginning after December **15, 2024**[109](index=109&type=chunk) - **ASU 2023-09** (Income Taxes) will require additional income tax disclosures, primarily related to rate reconciliation and income taxes paid, effective for fiscal years beginning after December **15, 2024**[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Altria's financial condition, operating results, strategic goals, and critical accounting estimates for the reported periods [Executive Summary](index=37&type=page&id=Executive%20Summary) Outlines Altria's vision, strategic goals, and key initiatives for transitioning to a smoke-free future - **Altria's** vision is to responsibly lead the transition of adult smokers to a smoke-free future, focusing on moving adult smokers away from cigarettes to potentially less harmful choices[112](index=112&type=chunk) - The company's portfolio includes leading combustible brands (**Marlboro**, **Black & Mild**) and smoke-free brands (**Copenhagen**, **Skoal**, **on!**, **NJOY ACE**)[113](index=113&type=chunk)[114](index=114&type=chunk) Altria's 2028 Enterprise Goals | Goal Category | Metric | Target | | :------------ | :----- | :----- | | Corporate | Adjusted diluted EPS CAGR | Mid-single digits (from 2022 base) | | Corporate | Dividend per share growth | Mid-single digits annually | | Corporate | Debt-to-Consolidated EBITDA ratio | Approximately 2.0x | | Corporate | Total adjusted OCI margin | At least 60% annually | | U.S. Smoke-Free Portfolio | U.S. smoke-free volumes growth | At least 35% (from 2022 base of 800 million units) | | U.S. Smoke-Free Portfolio | U.S. smoke-free net revenues | Approximately double to $5 billion (from 2022 base, with $2 billion from innovative products) | - The "Optimize & Accelerate" initiative aims to deliver at least **$600 million** in cumulative cost savings over the next five years, with initial pre-tax charges of **$100 million** to **$125 million**[115](index=115&type=chunk) [Consolidated Results of Operations for the Nine Months Ended September 30, 2024](index=40&type=page&id=Consolidated%20Results%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20September%2030,%202024) Summarizes Altria's consolidated net earnings and diluted EPS performance for the nine-month period Consolidated Net Earnings and Diluted EPS (9 Months Ended Sep 30) | Metric | 2024 | 2023 | % Change | | :----- | :--- | :--- | :------- | | Reported Net Earnings (in millions) | $8,225 | $6,070 | 35.5% | | Reported Diluted EPS | $4.75 | $3.40 | 39.7% | | Adjusted Net Earnings (in millions) | $6,637 | $6,739 | (1.5)% | | Adjusted Diluted EPS | $3.84 | $3.78 | 1.6% | - The significant increase in reported net earnings and diluted **EPS** was primarily driven by the **$2.7 billion** gain on the sale of **IQOS System** commercialization rights and favorable results from equity investments[118](index=118&type=chunk)[131](index=131&type=chunk) - Fewer shares outstanding contributed **$0.12** to diluted **EPS** growth for the nine months ended September **30, 2024**[118](index=118&type=chunk) [Consolidated Results of Operations for the three months ended September 30, 2024](index=41&type=page&id=Consolidated%20Results%20of%20Operations%20for%20the%20three%20months%20ended%20September%2030,%202024) Summarizes Altria's consolidated net earnings and diluted EPS performance for the three-month period Consolidated Net Earnings and Diluted EPS (3 Months Ended Sep 30) | Metric | 2024 | 2023 | % Change | | :----- | :--- | :--- | :------- | | Reported Net Earnings (in millions) | $2,293 | $2,166 | 5.9% | | Reported Diluted EPS | $1.34 | $1.22 | 9.8% | | Adjusted Net Earnings (in millions) | $2,357 | $2,275 | 3.6% | | Adjusted Diluted EPS | $1.38 | $1.28 | 7.8% | - The increase in reported net earnings and diluted **EPS** was primarily due to higher operating income and favorable results from equity investments[132](index=132&type=chunk) - Fewer shares outstanding contributed **$0.05** to diluted **EPS** growth for the three months ended September **30, 2024**[120](index=120&type=chunk) [Non-GAAP Financial Measures](index=41&type=page&id=Non-GAAP%20Financial%20Measures) Explains Altria's use of non-GAAP financial measures for business analysis and internal evaluation - **Altria** uses non-GAAP financial measures (**adjusted OCI**, **adjusted OCI margins**, **adjusted net earnings**, **adjusted diluted EPS**, debt-to-**Consolidated EBITDA**) to provide insight into underlying business trends and for internal planning and evaluation[121](index=121&type=chunk)[122](index=122&type=chunk) - Special items excluded from non-GAAP measures include loss on early extinguishment of debt, restructuring charges, asset impairment charges, acquisition/disposition/integration-related items, equity investment-related special items, certain income tax items, tobacco and health litigation charges, and NPM Adjustment Items[121](index=121&type=chunk) [Discussion and Analysis](index=42&type=page&id=Discussion%20and%20Analysis) Provides in-depth analysis of critical accounting estimates, consolidated operating results, and segment performance [Critical Accounting Estimates](index=42&type=page&id=Critical%20Accounting%20Estimates) Discusses key accounting judgments, including asset impairment and the risks associated with e-vapor goodwill - A **$354 million** non-cash, pre-tax impairment was recorded on the **Skoal** trademark in Q2 **2024** due to lower projected revenue and income, a decreased perpetual growth rate (**0%** from **1%**), and an increased discount rate (**11.5%** from **11.0%**)[124](index=124&type=chunk) - The e-vapor reporting unit's goodwill (**$1.8 billion**) is at risk of material non-cash impairment due to ongoing patent infringement lawsuits against **NJOY ACE** and the negative impact of increasing illicit e-vapor product sales on **NJOY's** volume growth[124](index=124&type=chunk)[125](index=125&type=chunk) - A hypothetical **1%** increase in the discount rate or a **1%** decrease in the perpetual growth rate for **Skoal** could result in an additional pre-tax impairment of approximately **$300 million** and **$120 million**, respectively[124](index=124&type=chunk) [Consolidated Operating Results](index=43&type=page&id=Consolidated%20Operating%20Results) Analyzes Altria's overall net revenues and operating income trends for the reported periods Consolidated Net Revenues and Operating Income (in millions) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Revenues | $18,044 | $18,508 | $6,259 | $6,281 | | Operating Income | $8,359 | $8,751 | $3,152 | $3,089 | | Adjusted OCI | $9,272 | $9,454 | $3,096 | $3,011 | - Net revenues decreased for the nine months primarily due to lower shipment volume in the smokeable products segment, partially offset by higher oral tobacco product net revenues[130](index=130&type=chunk) - Operating income decreased for the nine months due to lower **OCI**, which includes the non-cash impairment of the **Skoal** trademark[130](index=130&type=chunk) [Operating Results by Business Segment](index=46&type=page&id=Operating%20Results%20by%20Business%20Segment) Details the financial performance and market trends of Altria's smokeable and oral tobacco product segments - The U.S. tobacco industry faces significant challenges from pending litigation, **FDA** regulations (including inaction on illicit products), illicit trade, excise tax increases, and shifts in adult tobacco consumer preferences[133](index=133&type=chunk)[134](index=134&type=chunk) - Total estimated domestic cigarette industry volume declined by **9%** in Q3 **2024**, primarily due to the growth of illicit e-vapor products and continued discretionary income pressures on adult tobacco consumers[134](index=134&type=chunk) - The e-vapor category grew approximately **30%** over the **12 months** ended September **30, 2024**, driven by illicit flavored disposable products, which now represent **65%** of the category[134](index=134&type=chunk) - The U.S. nicotine pouch category grew to **43.9%** of the U.S. oral tobacco category in Q3 **2024**, with **Altria's** **on!** brand achieving an **8.9%** share[136](index=136&type=chunk) [Smokeable Products Segment](index=59&type=page&id=Smokeable%20Products%20Segment) Examines the financial results, shipment volumes, and retail share performance of Altria's smokeable products Smokeable Products Segment Financial Results (in millions) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | % Change | | :----- | :-------------------------- | :-------------------------- | :------- | | Net revenues | $15,941 | $16,482 | (3.3)% | | Reported OCI | $8,183 | $8,092 | 1.1% | | Adjusted OCI | $8,213 | $8,142 | 0.9% | | Reported OCI margin | 61.5% | 59.8% | 1.7 pp | | Adjusted OCI margin | 61.7% | 60.1% | 1.6 pp | Smokeable Products Shipment Volume (sticks in millions) | Brand | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | % Change | | :---- | :-------------------------- | :-------------------------- | :------- | | Marlboro | 47,411 | 52,339 | (9.4)% | | Total cigarettes | 51,989 | 58,132 | (10.6)% | | Total smokeable products | 53,312 | 59,493 | (10.4)% | Cigarettes Retail Share Performance | Brand | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Percentage Point Change | | :---- | :-------------------------- | :-------------------------- | :---------------------- | | Marlboro | 41.9% | 42.1% | (0.2) | | Total cigarettes | 46.1% | 47.0% | (0.9) | - **PM USA** implemented multiple price increases across its cigarette brands in **2024** and **2023**, with increases ranging from **$0.15** to **$0.25 per pack**. Middleton also increased cigar list prices[168](index=168&type=chunk) [Oral Tobacco Products Segment](index=62&type=page&id=Oral%20Tobacco%20Products%20Segment) Reviews the financial results, shipment volumes, and retail share performance of Altria's oral tobacco products Oral Tobacco Products Segment Financial Results (in millions) | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | % Change | | :----- | :-------------------------- | :-------------------------- | :------- | | Net revenues | $2,084 | $1,993 | 4.6% | | Reported OCI | $996 | $1,314 | (24.2)% | | Adjusted OCI | $1,350 | $1,314 | 2.7% | | Reported OCI margin | 49.6% | 68.9% | (19.3) pp | | Adjusted OCI margin | 67.2% | 68.9% | (1.7) pp | Oral Tobacco Products Shipment Volume (cans and packs in millions) | Brand | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | % Change | | :---- | :-------------------------- | :-------------------------- | :------- | | Copenhagen | 304.4 | 333.3 | (8.7)% | | Skoal | 111.6 | 123.3 | (9.5)% | | on! | 116.4 | 83.9 | 38.7% | | Total oral tobacco products | 582.4 | 589.8 | (1.3)% | Oral Tobacco Products Retail Share Performance | Brand | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Percentage Point Change | | :---- | :-------------------------- | :-------------------------- | :---------------------- | | Copenhagen | 19.4% | 24.1% | (4.7) | | Skoal | 7.7% | 9.6% | (1.9) | | on! | 8.0% | 6.8% | 1.2 | | Total oral tobacco products | 37.8% | 43.4% | (5.6) | - **USSTC** and **Helix** implemented multiple price increases across their oral tobacco brands in **2024** and **2023**[175](index=175&type=chunk) [E-Vapor](index=64&type=page&id=E-Vapor) Reports on NJOY's shipment volumes and retail share performance within the e-vapor category - For the nine months ended September **30, 2024**, **NJOY** consumables shipment volume was **33.8 million units**, and device shipment volume was **3.9 million units**[176](index=176&type=chunk) - **NJOY's** retail share of consumables in the U.S. multi-outlet and convenience channel was **5.3%** for the nine months ended September **30, 2024**[176](index=176&type=chunk) - For the three months ended September **30, 2024**, **NJOY** consumables shipment volume increased **15.6%** YoY to **10.4 million units**, and device shipment volume increased over **100%** YoY to **1.1 million units**[176](index=176&type=chunk) - **NJOY's** retail share of consumables in the U.S. multi-outlet and convenience channel increased **2.8 percentage points** YoY to **6.2%** in Q3 **2024**[176](index=176&type=chunk) [Liquidity and Capital Resources](index=64&type=page&id=Liquidity%20and%20Capital%20Resources) Assesses Altria's cash flows, debt, credit ratings, and capital allocation strategies - **Altria's** liquidity is primarily dependent on cash flows from subsidiaries, a **$3.0 billion** revolving credit agreement, and access to credit markets[177](index=177&type=chunk)[178](index=178&type=chunk) - Cash and cash equivalents were **$1.9 billion** at September **30, 2024**[178](index=178&type=chunk) - Net cash provided by operating activities decreased to **$5,413 million** for the nine months ended September **30, 2024**, from **$6,060 million** in **2023**, due to higher income tax credit payments and litigation payments[187](index=187&type=chunk) - Net cash provided by investing activities was **$2,238 million** for the nine months ended September **30, 2024**, a significant improvement from a net use of **$1,217 million** in **2023**, driven by proceeds from the **ABI Transaction**[188](index=188&type=chunk) - Net cash used in financing activities increased to **$9,444 million** for the nine months ended September **30, 2024**, from **$7,353 million** in **2023**, primarily due to higher share repurchases[189](index=189&type=chunk) [Capital Markets and Other Matters](index=65&type=page&id=Capital%20Markets%20and%20Other%20Matters) Details Altria's credit ratings, debt levels, and capital market activities Credit Ratings at September 30, 2024 | Agency | Short-term Debt | Long-term Debt | Outlook | | :----- | :-------------- | :------------- | :------ | | Moody's | P-2 | A3 | Negative | | S&P | A-2 | BBB | Positive | | Fitch | F2 | BBB | Stable | - Total long-term debt was **$25.2 billion** at September **30, 2024**, down from **$26.2 billion** at December **31, 2023**[180](index=180&type=chunk) Debt Ratios at September 30, 2024 | Metric | Value | | :----- | :---- | | Total Debt / Consolidated net earnings | 2.4 | | Total Debt / Consolidated EBITDA | 2.1 | - Proceeds of approximately **$2.4 billion** from the **ABI Transaction** were used to fund **Accelerated Share Repurchase** (**ASR**) transactions[184](index=184&type=chunk) - A **$250 million** cash payment was made in July **2024** for **NJOY** contingent payments following **FDA** marketing granted orders[184](index=184&type=chunk) [Payments Under State Settlement Agreements and FDA Regulation](index=66&type=page&id=Payments%20Under%20State%20Settlement%20Agreements%20and%20FDA%20Regulation) Outlines estimated annual payments for state settlements and FDA user fees - Estimated average annual payments for State Settlement Agreements and **FDA** user fees are **$3.5 billion** for the next three years[184](index=184&type=chunk) - Payments for State Settlement Agreements are generally made in April of the following year, while **FDA** user fees are paid in the quarter incurred[184](index=184&type=chunk) - **PM USA's** obligation to pay settling plaintiffs' attorneys' fees under the State Settlement Agreements is expected to terminate in Q4 **2024**[184](index=184&type=chunk) [Equity and Dividends](index=67&type=page&id=Equity%20and%20Dividends) Summarizes Altria's dividend payments and share repurchase activities - Dividends paid increased by **1.3%** to **$5,108 million** for the first nine months of **2024**, driven by a higher dividend rate and fewer shares outstanding[186](index=186&type=chunk) - The quarterly dividend rate increased by **4.1%** to **$1.02 per share**, with an annualized rate of **$4.08 per share**, aligning with a progressive dividend goal targeting mid-single digit annual growth through **2028**[186](index=186&type=chunk) - **$2.4 billion** was paid for common stock repurchases under **Accelerated Share Repurchase** (**ASR**) transactions in the first half of **2024**, funded by **ABI Transaction** proceeds[186](index=186&type=chunk) [Financial Review](index=67&type=page&id=Financial%20Review) Provides a detailed review of cash flows from operating, investing, and financing activities [Cash Provided by/Used in Operating Activities](index=67&type=page&id=Cash%20Provided%20by/Used%20in%20Operating%20Activities) Analyzes changes in cash generated from Altria's core business operations - Net cash provided by operating activities decreased to **$5,413 million** for the first nine months of **2024** (from **$6,060 million** in **2023**), primarily due to payments for income tax credits, higher litigation payments, and **NJOY** contingent payments[187](index=187&type=chunk) [Cash Provided by/Used in Investing Activities](index=67&type=page&id=Cash%20Provided%20by/Used%20in%20Investing%20Activities) Examines cash flows related to Altria's investments and capital expenditures - Net cash provided by investing activities was **$2,238 million** for the first nine months of **2024**, compared to a net use of **$1,217 million** in **2023**, primarily due to proceeds from the **ABI Transaction**[188](index=188&type=chunk) - Capital expenditures for **2024** are projected to be in the range of **$125 million** to **$175 million**, a reduction from the previous estimate of **$175 million** to **$225 million**[188](index=188&type=chunk) [Cash Provided by/Used in Financing Activities](index=67&type=page&id=Cash%20Provided%20by/Used%20in%20Financing%20Activities) Details cash flows from Altria's debt, equity, and dividend activities - Net cash used in financing activities increased to **$9,444 million** for the first nine months of **2024** (from **$7,353 million** in **2023**), driven by higher share repurchases and **NJOY** contingent payments, partially offset by lower long-term debt repayments[189](index=189&type=chunk) [New Accounting Guidance Not Yet Adopted](index=67&type=page&id=New%20Accounting%20Guidance%20Not%20Yet%20Adopted) Identifies upcoming accounting standards that will impact future financial disclosures - **ASU 2023-07** (Segment Reporting) will require expanded footnote disclosures for segment information, effective for fiscal years beginning after December **15, 2024**[109](index=109&type=chunk)[190](index=190&type=chunk) - **ASU 2023-09** (Income Taxes) will require additional income tax disclosures, primarily related to rate reconciliation and income taxes paid, effective for fiscal years beginning after December **15, 2024**[109](index=109&type=chunk)[190](index=190&type=chunk) [Contingencies](index=68&type=page&id=Contingencies) Summarizes Altria's legal proceedings and related accrued liabilities - **Altria** faces various legal proceedings, including product liability, health care cost recovery, e-vapor, and patent infringement cases[80](index=80&type=chunk)[191](index=191&type=chunk) Accrued Liability for Litigation Items (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Accrued liability at beginning of period | $346 | $71 | | Pre-tax charges for tobacco and health and certain other litigation | $59 | $75 | | Pre-tax charges for JUUL-related settlements | $30 | $240 | | Related interest costs | $1 | $11 | | Payments | $(300) | $(122) | | Accrued liability at end of period | $136 | $373 | [Supplemental Guarantor Financial Information](index=68&type=page&id=Supplemental%20Guarantor%20Financial%20Information) Presents summarized financial information for Altria's parent company and guarantor subsidiary - **Philip Morris USA Inc.** (**PM USA**), a **100%** owned subsidiary, fully and unconditionally guarantees **Altria's** obligations under its outstanding debt securities, credit agreement, and commercial paper program[192](index=192&type=chunk) - The guarantees could be voided or subordinated under bankruptcy or fraudulent transfer laws if **PM USA** did not receive reasonably equivalent value or was insolvent when incurring the obligations[192](index=192&type=chunk) Summarized Balance Sheets (in millions of dollars) - Parent and Guarantor | Metric | Parent (Sep 30, 2024) | Parent (Dec 31, 2023) | Guarantor (Sep 30, 2024) | Guarantor (Dec 31, 2023) | | :----- | :-------------------- | :-------------------- | :----------------------- | :----------------------- | | Total current assets | $2,324 | $4,052 | $1,042 | $994 | | Total non-current assets | $14,532 | $16,358 | $1,319 | $1,334 | | Total current liabilities | $7,399 | $6,256 | $4,453 | $4,746 | | Total non-current liabilities | $26,436 | $27,876 | $585 | $590 | Summarized Statements of Earnings (Losses) (in millions of dollars) - Parent and Guarantor (9 Months Ended Sep 30, 2024) | Metric | Parent | Guarantor | | :----- | :----- | :-------- | | Net revenues | $0 | $15,049 | | Gross profit | $0 | $8,590 | | Net earnings (losses) | $(350) | $5,803 | [Cautionary Factors That May Affect Future Results](index=69&type=page&id=Cautionary%20Factors%20That%20May%20Affect%20Future%20Results) Highlights key risks and uncertainties that could impact Altria's future financial performance - Future results are subject to risks including changes in adult tobacco consumer preferences, inability to compete effectively, and the growth of illicit disposable e-vapor products[198](index=198&type=chunk) - Significant federal, state, and local government actions, including **FDA** regulatory actions and inaction, and increases in tobacco product-related taxes, pose material risks[198](index=198&type=chunk) - Risks also include failure to successfully manage strategic transactions (like **NJOY** acquisition), significant changes in raw material prices/availability, and potential asset impairment (trademarks, goodwill)[198](index=198&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Assesses Altria's exposure to market risks, primarily interest rate fluctuations on debt - **Altria's** primary market risk is interest rate risk on its fixed-rate long-term debt[200](index=200&type=chunk) Fair Value of Long-term Debt and Sensitivity (in billions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----- | :----------- | :----------- | | Fair value | $24.0 | $24.4 | | Decrease in fair value from a 1% increase in market interest rates | $1.9 | $1.9 | | Increase in fair value from a 1% decrease in market interest rates | $2.2 | $2.2 | [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of Altria's disclosure controls and internal financial reporting controls - **Altria's** disclosure controls and procedures were deemed effective as of September **30, 2024**, following an evaluation by management, including the CEO and CFO[201](index=201&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[201](index=201&type=chunk) PART II - OTHER INFORMATION This part provides additional information on legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) Refers to detailed disclosures on legal proceedings in the financial statement notes - Legal proceedings pending against **Altria** are detailed in Note **14** of the condensed consolidated financial statements[202](index=202&type=chunk) [Item 1A. Risk Factors](index=71&type=page&id=Item%201A.%20Risk%20Factors) Confirms no material changes to previously disclosed risk factors - No material changes to the risk factors previously disclosed in **Altria's** **2023** Form **10-K** have occurred[203](index=203&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Altria's share repurchase program and its execution - A **$3.4 billion** share repurchase program was authorized in January **2024** (increased in March **2024**), with completion expected by December **31, 2024**[204](index=204&type=chunk) Share Repurchase Activity (3 Months Ended Sep 30, 2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value Remaining | | :----- | :------------------------------- | :--------------------------- | :------------------------------- | | July 1-31, 2024 | 4,813,800 | $48.05 | $758,711,760 | | August 1-31, 2024 | 4,694,454 | $51.07 | $519,053,962 | | September 1-30, 2024 | 4,003,761 | $52.34 | $309,534,422 | | Total (3 months) | 13,512,015 | $50.37 | | - At September **30, 2024**, **$310 million** remained under the January **2024** share repurchase program[28](index=28&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) Confirms no changes in trading arrangements by directors or officers - No **Rule 10b5-1** or non-**Rule 10b5-1** trading arrangements were adopted, modified, or terminated by directors or officers during Q3 **2024**[206](index=206&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) Lists all supplementary documents and certifications filed with the report - Exhibits include certifications from the CEO and CFO (**31.1**, **31.2**, **32.1**, **32.2**), **XBRL** instance documents (**101.INS**, **101.SCH**, **101.CAL**, **101.DEF**, **101.LAB**, **101.PRE**, **104**), and additional litigation matters (**99.1**, **99.2**)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) Signature Identifies the signing officer and date of the financial report - The report was signed by Salvatore Mancuso, Executive Vice President and Chief Financial Officer, on October **31, 2024**[213](index=213&type=chunk)

Exhibit 99.1 ALTRIA REPORTS 2024 THIRD-QUARTER AND NINE-MONTHS RESULTS; REAFFIRMS 2024 FULL-YEAR EARNINGS GUIDANCE RICHMOND, Va. - October 31, 2024 - Altria Group, Inc. (NYSE: MO) today reports our 2024 third-quarter and ninemonths business results and reaffirms our guidance for 2024 full-year adjusted diluted earnings per share (EPS). "Altria delivered outstanding results in the third quarter," said Billy Gifford, Altria's Chief Executive Officer. "The smokeable products segment delivered solid operating c ...