Altria(US:MO)2023-02-26 16:00Shipment Volumes - Total smokeable products segment's cigarette shipment volume in the United States was 84.7 billion units in 2022, a decrease of 9.7% from 2021[10] - Total cigars shipment volume in the smokeable products segment was approximately 1.7 billion units in 2022, a decrease of 4.0% from 2021[10] - Total oral tobacco products segment's shipment volume was 800.6 million units in 2022, a decrease of 2.4% from 2021[10] Financial Performance - Net revenues for the year ended December 31, 2022, were $25,096 million, compared to $26,000 million in 2021, reflecting a decrease of approximately 3.5%[143] - Gross profit for 2022 was $14,246 million, resulting in a gross margin of approximately 56.7%[143] - Net earnings attributable to Altria for 2022 were $5,764 million, with basic and diluted earnings per share of $3.19[143] - Total revenue for the company decreased to $9,600 million in 2022 from $13,481 million in 2021, representing a decline of approximately 28%[175] - Operating income for 2022 increased to $11,919 million, up from $11,560 million in 2021, reflecting a growth of 3.1%[224] - Earnings before income taxes for 2022 were $7,389 million, significantly higher than $3,824 million in 2021, marking an increase of 93.3%[224] Assets and Liabilities - Total assets decreased from $39,523 million in 2021 to $36,954 million in 2022, a decline of approximately 6.5%[138] - Total liabilities increased from $40,877 million in 2021 to $40,877 million in 2022, remaining stable year-over-year[140] - Cash and cash equivalents decreased from $4,544 million in 2021 to $4,030 million in 2022, a decline of approximately 11.4%[138] - The carrying value of the company's total long-term debt was $26,680 million as of December 31, 2022, down from $28,044 million in 2021[188] Investments and Impairments - The company recognized losses from investments in equity securities amounting to $3,641 million in 2022, down from $5,979 million in 2021[148] - A non-cash, pre-tax impairment charge of $2.5 billion was recorded in Q3 2022 due to a decline in the fair value of the investment in ABI[181] - The carrying value of the investment in JUUL was $450 million as of June 30, 2022, which is less than 10% of its initial carrying value of $12.8 billion[181] - The company recorded a non-cash, pre-tax impairment charge of $205 million for its investment in Cronos for the year ended December 31, 2021, as the fair value was less than its carrying value by approximately 25%[186] Employee and Diversity Metrics - As of December 31, 2022, women represented 34% of vice president-level and 41% of director-level roles[12] - The company aims to have equal numbers of men and women among vice president and director-level employees[12] - The company employed approximately 6,300 people as of December 31, 2022[15] Legal and Regulatory Matters - In 2022, the company reported 162 individual smoking and health cases, a decrease from 176 in 2021, and an increase from 148 in 2020[260] - The company is currently involved in 57 class action lawsuits related to JUUL e-vapor products, with 3,830 individual lawsuits filed[260] - PM USA was ordered to pay $5 million in compensatory damages in January 2023, with $3 million specifically attributed to PM USA[264] - The company is currently under examination by the IRS for tax years 2017 through 2020, which may affect future tax provisions[214] Taxation - The provision for income taxes in 2022 was $1,625 million, compared to $1,349 million in 2021, indicating a rise of 20.4%[216] - The effective tax rate for 2022 was 22.0%, a decrease from 35.3% in 2021[216] - The investment in JUUL contributed $3,001 million to deferred income tax assets in 2022, an increase from $2,652 million in 2021[219] Shareholder Returns - Dividends paid on common stock in 2022 totaled $6,599 million, slightly higher than $6,446 million in 2021[150] - The quarterly dividend rate was increased by 4.4% to $0.94 per share, resulting in an annualized dividend rate of $3.76 per share[201] - The company repurchased $1,825 million of common stock in 2022, compared to $1,675 million in 2021[150] Pension and Employee Benefits - The accumulated benefit obligation for pension plans was $6.1 billion at December 31, 2022, down from $8.2 billion in 2021[231] - The actual return on plan assets for 2022 was a loss of $1,748 million, compared to a gain of $466 million in 2021, indicating a significant decline in asset performance[234] - Employer contributions to the pension plan were $20 million in 2022, down from $26 million in 2021[234] Environmental and Compliance Costs - Environmental compliance costs are not expected to have a material adverse effect on consolidated results, capital expenditures, or cash flows[160] - The company expects to continue making capital expenditures related to environmental laws and regulations, although compliance is not expected to materially affect financial results[281] Internal Controls and Governance - The company maintained effective internal control over financial reporting as of December 31, 2022, according to the independent auditor's opinion[285] - Management's assessment included evaluation of design and operational effectiveness of internal controls[298] - There are inherent limitations in internal control that may not prevent or detect misstatements[298]