\nWe published our 2022 Lobbying and Political Activity Transparency & Integrity Annual Report, which examines our public policy activities – including lobbying at the federal, state and local levels, grassroots (indirect) lobbying activities, and support of public policy organizations, candidates and political committees – as well as our extensive compliance program that governs these activities.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n2023 Full-Year Guidance<\/b><\/p>\n
\nWe reaffirm our guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.98 to $5.13, representing a growth rate of 3% to 6% from an adjusted diluted EPS base of $4.84 in 2022. While the 2023 full-year adjusted diluted EPS guidance accounts for a range of scenarios, the external environment remains dynamic. We will continue to monitor conditions related to (i) the economy, including the impact of high inflation, rising interest rates and global supply chain disruptions, (ii) ATC dynamics, including disposable income, purchasing patterns and adoption of smoke-free products, and (iii) regulatory and legislative developments.<\/p>\n
\nOur 2023 full-year adjusted diluted EPS guidance range includes planned investments in support of our Vision, such as (i) continued smoke-free product research, development and regulatory preparation expenses, (ii) enhancement of our digital consumer engagement system and (iii) marketplace activities in support of our smoke-free products. The guidance range also includes lower expected net periodic benefit income due to market factors, including higher interest rates, and the impact of the 2022 completion of the wind-down of our former financial services business. This guidance range does not include the potential financial impacts of the NJOY Transaction.<\/p>\n
Our<\/i> full-year adjusted diluted EPS guidance range excludes the impact of certain income and expense items that our 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 and disposition-related items, equity investment-related special items (including any changes in fair value of our equity investment recorded at fair value and any changes in the fair value of related warrants and preemptive rights), certain income tax items, charges associated with tobacco and health and certain other litigation items, and resolutions of certain non-participating manufacturer (NPM) adjustment disputes under the MSA (such dispute resolutions are referred to as NPM Adjustment Items). See Table 1 below for the income and expense items for the first quarter of 2023.<\/i><\/p>\n
Our manag<\/i>ement cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on our reported diluted EPS because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, we do not provide a corresponding U.S. generally accepted accounting principles (GAAP) measure for, or reconciliation to, our adjusted diluted EPS guidance.<\/i><\/p>\n
ALTRIA GROUP, INC.<\/b><\/p>\n
See <\/i>\u201cBasis of Presentation<\/i>\u201d below <\/i>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 2.9% to $5.7 billion, primarily driven by lower net revenues in the smokeable products segment. Revenues net of excise taxes decreased 1.2% to $4.8 billion.<\/p>\n<\/li>\n
- \nReported diluted EPS decreased 7.4% to $1.00, primarily driven by loss on the disposition of our JUUL equity securities, higher tobacco and health and certain other litigation items, partially offset by 2022 changes in the estimated fair value of our former investment in JUUL equity securities, favorable interest expense and fewer shares outstanding.<\/p>\n<\/li>\n
- \nAdjusted diluted EPS increased 5.4% to $1.18, primarily driven by fewer shares outstanding, higher adjusted earnings from our investment in ABI and favorable interest expense.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 1 – Altria\u2019s Adjusted Results<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/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 1.00<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.08<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (7.4<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNPM Adjustment Items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(0.02<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTobacco and health and certain other litigation items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.04<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLoss on disposition and changes in fair value of JUUL equity securities<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.14<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.05<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nABI-related special items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(0.01<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(0.02<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCronos-related special items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.01<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.03<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted diluted EPS<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.18<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.12<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 5.4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/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 NPM Adjustment Items<\/i><\/b><\/p>\n\n- \nIn the first quarter of 2022, we recorded pre-tax income of $60 million (or $0.02 per share) due to NPM Adjustments items.<\/p>\n<\/li>\n<\/ul>\n
Tobacco and Health and Certain Other Litigation Items<\/i><\/b><\/p>\n\n- \nIn the first quarter of 2023, we recorded pre-tax charges of $111 million (or $0.04 per share), for tobacco and health and certain other litigation items and related interest costs.<\/p>\n<\/li>\n<\/ul>\n
Loss on Disposition and Changes in Fair Value of JUUL Equity Securities<\/i><\/b><\/p>\n \nWe recorded non-cash, pre-tax losses from investments in equity securities as a result of the 2023 JUUL Transaction and changes in the estimated fair value of our former investment in JUUL in 2022. Amounts consisted of the following:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, except per share data)<\/b><\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(Income) losses from investments in equity securities<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n250<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n100<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLosses per share<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n0.14<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n0.05<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nWe recorded corresponding adjustments to the JUUL tax valuation allowance in 2023 and 2022.<\/p>\n ABI-Related Special Items<\/i><\/b><\/p>\n\n- \nIn the first quarter of 2022, equity earnings from ABI included net pre-tax income of $59 million (or $0.02 per share), primarily related to ABI\u2019s mark-to-market gains on certain ABI financial instruments associated with its share commitments.<\/p>\n<\/li>\n<\/ul>\n
\nThe ABI-related special items above include our respective share of the amounts recorded by ABI and additional adjustments related to (i) conversion from international financial reporting standards to GAAP and (ii) adjustments to our investment required under the equity method of accounting.<\/p>\n Cronos-Related Special Items<\/i><\/b><\/p>\n \nWe recorded net pre-tax expense consisting of the following:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, except per share data)<\/b><\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nLoss on Cronos-related financial instruments<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n10<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(Income) losses from investments in equity securities 1<\/sup><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n26<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n51<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal Cronos-related special items – (income) expense<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n26<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n61<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLosses per share<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n0.01<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n0.03<\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1<\/sup> Amounts include our share of special items recorded by Cronos and additional adjustments, if required under the equity method of accounting, related to our investment in Cronos.<\/p>\n\nWe recorded corresponding adjustments to the Cronos tax valuation allowance in 2023 and 2022 relating to the special items.<\/p>\n SMOKEABLE PRODUCTS<\/b><\/p>\n Revenues and OCI<\/b><\/p>\n\n- \nNet revenues decreased 3.3%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 1.4%.<\/p>\n<\/li>\n
- \nReported operating companies income (OCI) decreased 2.2%, primarily driven by lower shipment volume, higher per unit settlement charges, 2022 NPM Adjustment Items and higher promotional investments, partially offset by higher pricing.<\/p>\n<\/li>\n
- \nAdjusted OCI was essentially unchanged, as higher pricing was mostly offset by lower shipment volume, higher per unit settlement changes and higher promotional investments. Adjusted OCI margins increased by 0.9 percentage points to 60.4%.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 2 – Smokeable Products: Revenues and OCI ($ in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/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 5,090<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 5,265<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (3.3<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nExcise taxes<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(928<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,044<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/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 4,162<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,221<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (1.4<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Reported OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,503<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,559<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (2.2<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNPM Adjustment Items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(60<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTobacco and health and certain other litigation items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n12<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n12<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,515<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,511<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 0.2<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Reported OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 60.1<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 60.6<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n (0.5<\/b><\/p>\n<\/td>\n | \n ) pp<\/b>\u00a0<\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 60.4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 59.5<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n 0.9<\/b><\/p>\n<\/td>\n | \n \u00a0pp<\/b>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1<\/sup><\/i>Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.<\/i><\/p>\nShipment Volume<\/b><\/p>\n\n- \nSmokeable products segment reported domestic cigarette shipment volume decreased 11.4%, primarily driven by the industry\u2019s decline rate, retail share losses (both of which were impacted by macroeconomic pressures on ATC disposable income) and trade inventory movements, partially offset by calendar differences.<\/p>\n<\/li>\n
- \nWhen adjusted for trade inventory movements and calendar differences, smokeable products segment domestic cigarette shipment volume decreased by an estimated 11%.<\/p>\n<\/li>\n
- \nWhen adjusted for calendar differences, trade inventory movements and other factors, total estimated domestic cigarette industry volume decreased by an estimated 9%.<\/p>\n<\/li>\n
- \nReported cigar shipment volume increased 2.3%.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 3 – Smokeable Products: Reported Shipment Volume (sticks in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Cigarettes:<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Marlboro<\/i><\/b><\/p>\n<\/td>\n | \n \n16,396<\/p>\n<\/td>\n | \n \n18,290<\/p>\n<\/td>\n | \n \n(10.4<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Other premium<\/b><\/p>\n<\/td>\n | \n \n825<\/p>\n<\/td>\n | \n \n937<\/p>\n<\/td>\n | \n \n(12.0<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Discount<\/b><\/p>\n<\/td>\n | \n \n1,048<\/p>\n<\/td>\n | \n \n1,390<\/p>\n<\/td>\n | \n \n(24.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total cigarettes<\/b><\/p>\n<\/td>\n | \n 18,269<\/b><\/p>\n<\/td>\n | \n 20,617<\/b><\/p>\n<\/td>\n | \n (11.4<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Cigars:<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Black & Mild<\/i><\/b><\/p>\n<\/td>\n | \n \n443<\/p>\n<\/td>\n | \n \n433<\/p>\n<\/td>\n | \n \n2.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Other<\/b><\/p>\n<\/td>\n | \n \n1<\/p>\n<\/td>\n | \n \n1<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total cigars<\/b><\/p>\n<\/td>\n | \n 444<\/b><\/p>\n<\/td>\n | \n 434<\/b><\/p>\n<\/td>\n | \n 2.3<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total smokeable products<\/b><\/p>\n<\/td>\n | \n 18,713<\/b><\/p>\n<\/td>\n | \n 21,051<\/b><\/p>\n<\/td>\n | \n (11.1<\/b><\/p>\n<\/td>\n | \n )%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Note: <\/i>Cigarettes volume includes units sold as well as promotional units but excludes units sold for distribution to Puerto Rico, U.S. Territories to overseas military and by Philip Morris Duty Free Inc., none of which, individually or in the aggregate, is material to our smokeable products segment.<\/i><\/p>\n Retail Share and Brand Activity<\/b><\/p>\n First Quarter<\/b><\/p>\n\n- Marlboro<\/i> retail share of the total cigarette category was 42.0%, a decrease of 0.6 share points versus the prior year and 0.2 share points sequentially, primarily due to increased macroeconomic pressures on ATC disposable income and increased competitive activity. However, Marlboro<\/i> share of the premium segment was 58.5%, an increase of 0.7 share points versus the prior year and 0.1 share point sequentially.\n<\/li>\n
- \nThe cigarette industry discount retail share was 28.2%, an increase of 1.8 share points versus the prior year and 0.5 share points sequentially primarily due to the ATC factors mentioned above.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 4 – Smokeable Products: Cigarettes Retail Share (percent)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |