www.altria.com\/webcasts<\/a>.\n<\/p>\nCash Returns to Shareholders<\/b><\/p>\n
Dividends<\/i><\/b><\/p>\n\n- \nIn the first quarter, Altria paid $1.6 billion in dividends.\n<\/li>\n
- \nAltria\u2019s current annualized dividend rate is $3.44 per share.\n<\/li>\n
- \nAltria maintains its long-term objective of a dividend payout ratio target of approximately 80% of its adjusted diluted EPS. Future dividend payments remain subject to the discretion of Altria\u2019s Board of Directors (Board).\n<\/li>\n<\/ul>\n
Share Repurchase Program<\/i><\/b><\/p>\n\n- \nIn the first quarter, Altria repurchased 6.9 million shares at an average price of $47.02, for a total cost of $325 million.\n<\/li>\n
- \nAs of March 31, 2021, Altria had approximately $1.7 billion remaining under the current $2 billion share repurchase program, which Altria expects to complete by June 30, 2022. Share repurchases depend on marketplace conditions and other factors, and the program remains subject to the discretion of Altria\u2019s Board.\n<\/li>\n<\/ul>\n
Non-combustible Products Business Platform <\/b><\/p>\n
Heated Tobacco<\/i><\/b><\/p>\n\n- \nIn March, PM USA introduced the new IQOS<\/i> 3 device for sale in all current markets. IQOS<\/i> 3 has a longer battery life and a faster re-charging time compared to the 2.4 version.\n<\/li>\n
- \nAs of the end of April, PM USA expanded Marlboro HeatSticks <\/i>in retail stores statewide, across Georgia, Virginia, North Carolina and South Carolina.\n<\/li>\n
- \nIn the first quarter, Marlboro HeatSticks<\/i> achieved a cigarette category retail share in stores with distribution of:<\/p>\n
\n- \n1.1% in Atlanta, an increase of 0.2% from the fourth quarter of 2020.\n<\/li>\n
- \n1.0% in Charlotte, an increase of 0.3% from the fourth quarter of 2020.\n<\/li>\n<\/ul>\n<\/li>\n
- \nIn June, PM USA plans to open a new IQOS <\/i>boutique in the Tysons Corner Mall, a center point in the highly populated Northern Virginia metro market.\n<\/li>\n
- \nAs previously announced, PM USA:<\/p>\n
\n- \nplans to expand IQOS <\/i>and Marlboro HeatSticks<\/i> into three additional metro markets in 2021.\n<\/li>\n
- \nexpects Marlboro HeatSticks<\/i> to be sold in geographies covering approximately 25% of U.S. cigarette industry volume by the end of 2021.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Oral Tobacco<\/i><\/b><\/p>\n\n- \nIn December 2020 and April 2021, Altria subsidiaries closed transactions to acquire the remaining 20% of the global on! <\/i>business for a total of approximately $250 million.\n<\/li>\n
- \nIn the first quarter, Helix expanded the distribution of on!<\/i> by an additional 15,000 stores. on!<\/i> was available in approximately 93,000 stores as of the end of the first quarter.\n<\/li>\n
- on!<\/i>\u2019sretail share performance:\n
\n- on!<\/i>\u2019s retail share of the total oral tobacco category was 1.7% in the first quarter, an increase of 0.6% from the fourth quarter of 2020.\n<\/li>\n
- on!<\/i>\u2019s retail share of the oral tobacco category in stores with on!<\/i> distribution was 3.1% for the twelve months ended March 31, 2021, an increase of 0.7% from the twelve months ended December 31, 2020.\n<\/li>\n<\/ul>\n<\/li>\n
- \nAs previously announced, Helix expects by mid-year 2021:<\/p>\n
\n- \nunconstrained on!<\/i> manufacturing capacity in the U.S. market.\n<\/li>\n
- on!<\/i> to be sold in stores covering 90% of total oral tobacco category volume and 80% of total cigarette category volume in the U.S.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
JUUL Investment<\/b><\/p>\n
\nIn the first quarter:\n<\/p>\n
\n- \nAltria estimates (i) total e-vapor category volumes increased by 24% versus a year ago and 7% sequentially and (ii) JUUL<\/i>\u2019s retail share of the total e-vapor category was 33%, a decrease of 6% year-over-year and 2% sequentially.\n<\/li>\n
- \nAltria recorded a non-cash pre-tax unrealized loss of $200 million as a result of a decrease in the fair value of JUUL. The decrease in fair value was primarily driven by (i) Altria\u2019s projections of lower JUUL revenues over time due to lower JUUL volume assumptions resulting from a continuation of heightened competitive dynamics in the U.S. e-vapor category and (ii) an increase in the discount rate due to a change in market factors.\n<\/li>\n<\/ul>\n
\nAs of March 31, 2021, the fair value of Altria\u2019s JUUL investment was $1.5 billion.\n<\/p>\n
\nAltria accounts for its investment in JUUL under the fair value option. Under this option, Altria\u2019s consolidated statement of earnings includes any cash dividends received from its investment in JUUL as well as any change in the fair value of the investment, which is calculated quarterly. These fair value changes are treated as special items and are excluded from Altria\u2019s adjusted results.\n<\/p>\n
Capital Markets Activity<\/b><\/p>\n
Debt Liability Management Transaction<\/i><\/b><\/p>\n
\nIn the first quarter, Altria:\n<\/p>\n
\n- \nExecuted a series of transactions to take advantage of favorable market conditions to adjust its debt maturity profile and extend the weighted average maturity of its debt. Specifically, Altria issued new long-term senior unsecured notes totaling $5.5 billion and repurchased over $5 billion aggregate principal amount in outstanding long-term senior unsecured notes through cash tender offers and a redemption (\u201cDebt Liability Management Transaction\u201d).\n<\/li>\n
- \nRecorded pre-tax losses on early extinguishment of debt in the amount of $649 million as a result of the tender offers and the redemption.\n<\/li>\n<\/ul>\n
\nFollowing the completion of the Debt Liability Management Transaction, Altria\u2019s weighted average coupon rate was 4.0% as of March 31, 2021 compared to 4.1% as of December 31, 2020.\n<\/p>\n
Debt Maturity<\/i><\/b><\/p>\n
\nIn May, Altria expects to retire $1.5 billion aggregate principal amount of long-term senior unsecured notes at maturity with available cash.\n<\/p>\n
Environmental, Social and Governance (ESG) <\/b><\/p>\n
\nAltria\u2019s Corporate Responsibility Focus Areas are: reducing the harm of tobacco products, preventing underage use, protecting the environment, driving responsibility through our value chain, supporting our people and communities and engaging and leading responsibly.\n<\/p>\n
Environmental<\/i><\/b><\/p>\n\n- \nIn April, Altria joined over 400 businesses and investors in supporting the Biden administration\u2019s commitment to climate action and calling for U.S. targets aligned with the Paris Agreement and the latest climate science. The letter Altria signed was organized by the We Mean Business coalition and Ceres. It communicates business and investor support for an ambitious 2030 emissions reduction target, or Nationally Determined Contribution pursuant to the Paris Agreement, in pursuit of reaching net-zero emissions by 2050.\n<\/li>\n<\/ul>\n
Social<\/i><\/b><\/p>\n\n- \nIn April, Altria released its 2020-2021 Supporting our People and Communities Corporate Responsibility Progress Report. 2020 Highlights include:<\/p>\n
\n- \nAltria established aspirational Inclusion and Diversity Aiming Points, which include 50-50 gender parity at its Vice President and above levels and a composition of at least 30% ethnically diverse executives. At the end of 2020, approximately 34% of Altria\u2019s VPs were women and approximately 19% were ethnically diverse.\n<\/li>\n
- \nAltria\u2019s data on pay equity showed that salaries of non-white employees are 99.6% of white employees\u2019 salaries, and female employees\u2019 salaries are 99.4% of male employees\u2019 salaries when adjusted for factors generally considered to be legitimate differentiators of salary.\n<\/li>\n
- \nAltria\u2019s Corporate Giving, Employee Community Engagement and Race & Equity Initiative included $55 million of corporate giving, of which, Altria contributed $5 million to help address systemic racism.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Governance<\/i><\/b><\/p>\n\n- \nIn April, Thomas F. Farrell II, Altria\u2019s Chairman of the Board passed away. The Board plans to evaluate Board leadership succession and appoint a new Chair at its meeting following Altria\u2019s 2021 Annual Meeting of Shareholders in May.\n<\/li>\n<\/ul>\n
Impact of COVID-19 Pandemic<\/b><\/p>\n
Impact on Tobacco Business Operations<\/i><\/b><\/p>\n\n- \nTo date, Altria\u2019s tobacco businesses have not experienced any material adverse effects associated with governmental actions to restrict consumer movement or business operations, but Altria continues to monitor these factors. The majority of retail stores in which tobacco products are sold, including convenience stores, have been deemed to be essential businesses by authorities and remain open.\n<\/li>\n
- \nAltria continues to monitor the macroeconomic risks of COVID-19 and its effect on adult tobacco consumers (ATC), including stay-at-home practices, disposable income (which may be impacted by unemployment rates and fiscal stimulus), purchasing patterns and adoption of non-combustible products.\n<\/li>\n<\/ul>\n
Impact on Wine Business Operations<\/i><\/b><\/p>\n\n- \nIn 2020, Ste. Michelle\u2019s on-premise and direct-to-consumer sales were significantly impacted by COVID-19. Ste. Michelle continues to monitor the impact of the COVID-19 pandemic-associated risks to its businesses.\n<\/li>\n<\/ul>\n
Impact on ABI, JUUL and Cronos Investments<\/i><\/b><\/p>\n\n- \nABI has been, and continues to be, impacted by COVID-19. While ABI stated in its year end 2020 earnings report that it expects its financial results in 2021 to improve meaningfully versus 2020, ABI did not provide earnings guidance for 2021 given the continued uncertainty. The extreme market disruption and volatility associated with the COVID-19 pandemic resulted in a steep decline in ABI\u2019s stock price in the first half of 2020. Although there was a gradual recovery in ABI\u2019s stock price in the second half of 2020 and again in April 2021, the fair value of Altria\u2019s investment in ABI continues to be below the carrying value. While Altria believes that this decline is temporary, it will continue to monitor its investment in ABI, including the impact of the COVID-19 pandemic on ABI\u2019s business and market valuation.\n<\/li>\n
- \nJUUL\u2019s operations were negatively impacted in 2020 by COVID-19 due to stay-at-home practices and government-mandated restrictions. While the impact was considered in Altria\u2019s quantitative valuations conducted in connection with the preparation of its financial statements for the three months ended March 31, 2021 and the year ended December 31, 2020, Altria does not believe the COVID-19 pandemic was a primary driver of the non-cash pre-tax impairment charge recorded during 2020 or the changes in fair value recorded during 2020 and during the three months ended March 31, 2021. Altria will continue to monitor the impact of the COVID-19 pandemic on JUUL\u2019s business in its quarterly valuations of JUUL.\n<\/li>\n
- \nCronos has been, and continues to be, impacted by COVID-19, due in part to government actions limiting access to retail stores in the United States and Canada. Altria will continue to monitor its investment in Cronos, including the impact of the COVID-19 pandemic on Cronos\u2019s business and market valuation.\n<\/li>\n<\/ul>\n
2021 Full-Year Guidance<\/b><\/p>\n
\nAltria reaffirms its guidance for 2021 full-year adjusted diluted EPS to be in a range of $4.49 to $4.62, representing a growth rate of 3% to 6% from an adjusted diluted EPS base of $4.36 in 2020. While the 2021 full-year adjusted diluted EPS guidance accounts for a range of scenarios, the external environment remains dynamic. Altria will continue to monitor conditions related to (i) unemployment rates, (ii) fiscal stimulus, (iii) ATC dynamics, including stay-at-home practices, disposable income, purchasing patterns and adoption of non-combustible products, (iv) regulatory and legislative (including excise tax) developments, (v) the timing and breadth of COVID-19 vaccine administration and (vi) expectations for adjusted earnings contributions from its alcohol assets.\n<\/p>\n
\nAltria\u2019s 2021 full-year adjusted diluted EPS guidance range includes planned investments in support of its Vision, such as (i) marketplace investments to expand the availability and awareness of Altria\u2019s non-combustible products, (ii) costs associated with building an industry-leading consumer engagement platform that enhances data collection and insights in support of ATC conversion to non-combustible products and (iii) increased non-combustible product research and development expense. Altria expects 2021 adjusted diluted EPS growth in the last three quarters of the year.\n<\/p>\n
\nAltria continues to expect its 2021 full-year adjusted effective tax rate will be in a range of 24.5% to 25.5%.\n<\/p>\n
Altria\u2019s full-year adjusted diluted EPS guidance and full-year forecast for its adjusted effective tax rate exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, for example, loss on early extinguishment of debt, restructuring charges, asset impairment charges, acquisition-related costs, COVID-19 special items, equity investment-related special items (including any changes in fair value of the equity investment and any related warrants and preemptive rights), certain tax items, charges associated with tobacco and health litigation items, and resolutions of certain nonparticipating manufacturer (NPM) adjustment disputes under the 1998 Master Settlement Agreement (such dispute resolutions are referred to as NPM Adjustment Items).<\/i><\/p>\n
Altria\u2019s management cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on its reported diluted EPS or its reported effective tax rate because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, Altria does not provide a corresponding U.S. generally accepted accounting principles (GAAP) measure for, or reconciliation to, its adjusted diluted EPS guidance or its adjusted effective tax rate forecast.<\/i><\/p>\n
ALTRIA GROUP, INC.<\/b><\/p>\n
See <\/i>\u201cBasis of Presentation<\/i>\u201d below for an explanation of financial measures and reporting segments discussed in this release. <\/i><\/p>\n
Financial Performance<\/b><\/p>\n\n- \nNet revenues decreased 5.1% to $6.0 billion, primarily driven by lower net revenues in the smokeable products segment. Revenues net of excise taxes decreased 3.3% to $4.9 billion.\n<\/li>\n
- \nReported diluted EPS decreased 7.2% to $0.77, primarily driven by losses on early extinguishment of debt from the Debt Liability Management Transaction, a decrease in the estimated fair value of Altria\u2019s investment in JUUL and higher acquisition-related costs, partially offset by higher reported operating companies income (OCI) in the wine segment and favorable Cronos-related and ABI-related special items.\n<\/li>\n
- \nAdjusted diluted EPS decreased 1.8% to $1.07, primarily driven by unfavorable timing of interest expense and a higher adjusted income tax rate.\n<\/li>\n<\/ul>\n
\n\n| \n Table 1 – Altria\u2019s Adjusted Results<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n |
\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n |
\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Reported diluted EPS<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 0.77<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 0.83 <\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (7.2)<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNPM Adjustment Items\n<\/p>\n<\/td>\n | \n \n(0.01\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nImplementation and acquisition-related costs\n<\/p>\n<\/td>\n | \n \n0.02\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.16\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTobacco and health litigation items\n<\/p>\n<\/td>\n | \n \n0.01\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.01\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nJUUL changes in fair value\n<\/p>\n<\/td>\n | \n \n0.10\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nABI-related special items\n<\/p>\n<\/td>\n | \n \n(0.05\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.03\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCronos-related special items\n<\/p>\n<\/td>\n | \n \n(0.04\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.05\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLoss on early extinguishment of debt\n<\/p>\n<\/td>\n | \n \n0.27\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTax items\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.01\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted diluted EPS<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.07<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.09 <\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (1.8)<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n Note: For details of pre-tax, tax and after-tax amounts, see Schedule 5.<\/i><\/p>\n Special Items<\/b><\/p>\n The EPS impact of the following special items is shown in Table 1 and Schedules 4 and 5.<\/i><\/p>\n Implementation and Acquisition-Related Costs<\/i><\/b><\/p>\n\n- \nIn the first quarter of 2021, Altria recorded pre-tax charges of $48 million (or $0.02 per share), primarily related to acquisition-related costs for the settlement of an arbitration related to the 2019 on!<\/i> transaction.\n<\/li>\n
- \nIn the first quarter of 2020, Ste. Michelle recorded pre-tax charges of $392 million (or $0.16 per share) consisting of $292 million for a wine inventory write-off and $100 million for estimated losses on future non-cancelable grape purchase commitments that Ste. Michelle believes no longer have a future economic benefit.\n<\/li>\n<\/ul>\n
ABI-Related Special Items <\/i><\/b><\/p>\n\n- \nIn the first quarter of 2021, equity earnings from ABI included net pre-tax income of $128 million (or $0.05 per share), consisting primarily of (i) ABI\u2019s completion of the issuance of a minority stake in its U.S.-based metal container operations, (ii) mark-to-market gains on certain ABI financial instruments associated with its share commitments and (iii) charges associated with an early bond termination by ABI.\n<\/li>\n
- \nIn the first quarter of 2020, equity earnings from ABI included net pre-tax charges of $56 million (or $0.03 per share), consisting primarily of (i) mark-to-market losses on certain ABI financial instruments associated with its share commitments and (ii) ABI\u2019s completion of its initial public offering of a minority stake of its Asia Pacific subsidiary.\n<\/li>\n<\/ul>\n
\nThe special items above include Altria\u2019s respective share of the specific amounts recorded by ABI and may also include additional adjustments related to (i) conversion from international financial reporting standards to GAAP and (ii) adjustments to Altria\u2019s investment required under the equity method of accounting.\n<\/p>\n Cronos-Related Special Items<\/i><\/b><\/p>\n \nIn the first quarter 2021, Altria recorded net pre-tax (income) expense consisting of the following:\n<\/p>\n \n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, except per share data)<\/b><\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(Gain) loss on Cronos-related financial instruments 1<\/sup><\/p>\n<\/td>\n| \n \n$\n<\/p>\n<\/td>\n | \n \n(110)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n137\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(Income) losses from equity investments 2<\/sup><\/p>\n<\/td>\n| \n \n40\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(48)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal Cronos-related special items – (income) expense\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(70)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n89\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEarnings per share\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(0.04)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n0.05\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1 <\/sup>The 2021 and 2020 amounts are related to the non-cash change in the fair value of the warrant and certain anti-dilution protections acquired in the Cronos transaction.\n<\/p>\n2<\/sup> Amounts primarily include Altria\u2019s share of Cronos\u2019s non-cash change in the fair value of Cronos\u2019s derivative financial instruments associated with the issuance of additional shares.\n<\/p>\nJUUL Changes in Fair Value<\/i><\/b><\/p>\n\n- \nIn the first quarter of 2021, Altria recorded a non-cash pre-tax unrealized loss of $200 million (or $0.10 per share) as a result of a decrease in the fair value of Altria\u2019s investment in JUUL. A corresponding adjustment was made to the JUUL tax valuation allowance.\n<\/li>\n<\/ul>\n
Loss on Early Extinguishment of Debt<\/i><\/b><\/p>\n\n- \nIn the first quarter of 2021, Altria recorded pre-tax losses on early extinguishment of debt of $649 million (or $0.27 per share) as a result of the Debt Liability Management Transaction.<\/p>\n
\n\u00a0\n<\/p>\n<\/li>\n<\/ul>\n SMOKEABLE PRODUCTS<\/b><\/p>\n Revenues and OCI<\/b><\/p>\n\n- \nNet revenues decreased 6.4%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 4.6%.\n<\/li>\n
- \nReported OCI was essentially unchanged, as higher pricing, lower costs and NPM Adjustment Items, were mostly offset by lower shipment volume, higher promotional investments and higher per unit settlement charges.\n<\/li>\n
- \nAdjusted OCI decreased 0.7%, primarily driven by lower shipment volume, higher promotional investments and higher per unit settlement charges, partially offset by higher pricing and lower costs. Adjusted OCI margins increased by 2.2 percentage points to 57.5%.\n<\/li>\n<\/ul>\n
\n\n| \n Table 2 – Smokeable Products: Revenues and OCI ($ in millions)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net revenues<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 5,250<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 5,606<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (6.4)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nExcise taxes\n<\/p>\n<\/td>\n | \n \n(1,121)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1,278)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Revenues net of excise taxes<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,129<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,328<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (4.6)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Reported OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,372<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,370<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 0.1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNPM Adjustment Items\n<\/p>\n<\/td>\n | \n \n(32)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTobacco and health litigation items\n<\/p>\n<\/td>\n | \n \n35\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n22\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,375<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,392<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (0.7)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n 57.5<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n 55.3<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n 2.2 pp<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n 1<\/sup> Adjusted OCI margins are calculated as adjusted OCI divided by revenues net of excise taxes.<\/i><\/p>\nShipment Volume<\/b><\/p>\n\n- \nSmokeable products segment reported domestic cigarette shipment volume decreased 12.0%, primarily driven by trade inventory movements, the industry\u2019s rate of decline, one fewer shipping day and other factors.\n<\/li>\n
- \nWhen adjusted for trade inventory movements, one fewer shipping day and other factors, smokeable products segment domestic cigarette shipment volume decreased by an estimated 3.5%.\n<\/li>\n
- \nWhen adjusted for trade inventory movements, one fewer shipping day and other factors, total estimated domestic cigarette industry volumes decreased by an estimated 2%.\n<\/li>\n
- \nReported cigar shipment volume increased 11.1%.\n<\/li>\n<\/ul>\n
\n\n| \n Table 3 – Smokeable Products: Shipment Volume (sticks in millions)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n | | | | | | | | | | | | | | | | | | | |