Altria(US:MO)2024-02-26 16:00Financial Performance - Net revenues for 2023 were $24,483 million, an increase from the previous year[141]. - Net earnings for 2023 reached $8,130 million, compared to $5,764 million in 2022, representing a 41.5% increase[143]. - The gross profit for 2023 was $14,284 million, with a gross margin of approximately 58.3%[141]. - Net cash provided by operating activities for 2023 was $9,287 million, compared to $8,256 million in 2022, reflecting a 12.5% increase[146]. - The company reported a loss of $2,751 million related to the acquisition of NJOY, net of cash acquired[149]. - Total dividends paid on common stock in 2023 were $6,779 million, slightly up from $6,599 million in 2022[149]. - The company repurchased $1,000 million of common stock in 2023, compared to $1,825 million in 2022[152]. - The company recorded pre-tax losses of $649 million during the first quarter of 2021 due to debt tender offers and redemption[201]. Assets and Liabilities - Total assets as of December 31, 2023, were $38,570 million, up from $36,954 million in 2022[138]. - Total liabilities increased to $42,060 million in 2023, compared to $40,877 million in 2022[138]. - The current portion of long-term debt decreased to $1,121 million in 2023 from $1,556 million in 2022[138]. - The carrying value of the company's total long-term debt was $26,233 million as of December 31, 2023, down from $26,680 million in 2022[191]. - The fair value of the company's total long-term debt was estimated at $24,373 million in 2023, compared to $22,928 million in 2022[191]. Employee and Diversity Initiatives - As of December 31, 2023, the company employed approximately 6,400 people, with 27% being hourly manufacturing employees[17]. - The company has established aspirational Inclusion & Diversity Aiming Points, including equal numbers of men and women among vice president and director-level employees[14]. - The company targets total compensation packages to be above peer companies, with actual total compensation potentially exceeding the 75th percentile based on performance[15]. Market and Product Segments - Total smokeable products segment's cigarette shipment volume in the United States was 76.3 billion units in 2023, a decrease of 9.9% from 2022[10]. - Total smokeable products segment's cigars shipment volume was approximately 1.8 billion units in 2023, an increase of 2.8% from 2022[10]. - Total oral tobacco products segment's shipment volume was 782.9 million units in 2023, a decrease of 2.2% from 2022[10]. - The company has exclusive U.S. commercialization rights to the IQOS Tobacco Heating System effective April 30, 2024[10]. - NJOY is currently the only e-vapor manufacturer to receive market authorizations from the U.S. FDA for a pod-based e-vapor product[10]. Tax and Legal Matters - The effective tax rate for 2023 was 25.6%, compared to 22.0% in 2022, with a total tax provision of $2,798 million for 2023[219]. - The balance of unrecognized tax benefits at December 31, 2023, was $1,608 million, significantly up from $69 million at the end of 2022[217]. - PM USA has paid approximately $1 billion in judgments and settlements related to tobacco litigation, with an additional $241 million in interest[255]. - The accrued liability for tobacco and health litigation items at the end of 2023 was $346 million, a significant increase from $71 million in 2022[256]. - PM USA recorded pre-tax charges of $242 million related to JUUL settlements in 2023, reflecting ongoing financial impacts from e-vapor litigation[256]. Research and Development - Research and development expenses increased to $220 million in 2023 from $162 million in 2022, reflecting a growth of 35.7%[250]. Pension and Employee Benefits - The company reported a funded status of $347 million for its pension plans as of December 31, 2023, compared to $311 million in 2022[229]. - The accumulated benefit obligation for pension plans was $6.3 billion at December 31, 2023, up from $6.1 billion in 2022[229]. - The net periodic benefit cost for pension plans was reported as a gain of $103 million in 2023, compared to a loss of $121 million in 2022[232]. Acquisitions and Investments - The acquisition of NJOY Holdings, Inc. was completed on June 1, 2023, for a total consideration of approximately $2.9 billion, including $2.75 billion in cash and up to $500 million in contingent payments based on FDA authorizations[164]. - NJOY's financial results have been consolidated into the company's financials starting June 1, 2023, and are categorized under "all other" in segment reporting[164]. - The fair value of the investment in ABI was $12.7 billion at December 31, 2023, exceeding its carrying value of $9.7 billion by approximately 32%[182]. Litigation and Regulatory Issues - PM USA is facing 5,177 e-vapor cases as of December 31, 2023, down from 5,283 cases in 2022, indicating a potential stabilization in litigation volume[259]. - The company has successfully defended against 49 out of 80 tobacco-related cases since January 1999, demonstrating a relatively strong litigation defense track record[259]. - PM USA recorded a pre-tax charge of approximately $48 million related to a Massachusetts Supreme Judicial Court ruling affirming a judgment against the company[261]. Environmental and Compliance Matters - The company has accrued for environmental remediation obligations, although future costs cannot be reasonably estimated[278]. - The company has not recorded any related liability for indemnification agreements with PMI as the fair value is considered insignificant[279].