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Altria Group, Inc. 120 Park Avenue New York, NY 10017
NEWS RELEASE
Contact: Nicholas M. Rolli (917) 663-3460 Timothy R. Kellogg
(917) 663-2759
ALTRIA GROUP, INC. REPORTS
2006 SECOND-QUARTER RESULTS
Reported Diluted Earnings Per Share from Continuing
Operations
Down 7.9% to $1.29 vs. $1.40 in Year-Ago Quarter
Excluding Items Detailed in Table Below,
Diluted Earnings Per Share from Continuing Operations
Up 6.8% to $1.41 vs. $1.32 in Year-Ago Quarter
Forecast Raised To A Range of $5.40 to $5.50
For 2006 Full-Year Diluted Earnings Per Share from Continuing
Operations
NEW YORK, July 25, 2006 Altria Group, Inc. (NYSE: MO) today
announced second-
quarter 2006 reported diluted earnings per share from continuing
operations of $1.29, including
items detailed on the attached Schedule 7, versus $1.40 in the
year-ago period.
Our second quarter results were solid in all respects, and we
are witnessing an
improvement in underlying fundamentals across all our
businesses. While the global economic
outlook continues to be a source of concern, we look forward to
continued momentum in the
second half of the year, said Louis C. Camilleri, chairman and
chief executive officer of Altria
Group, Inc. Our domestic tobacco business continued to increase
its market share, driven by
gains for both Marlboro and Parliament. Our international
tobacco business achieved strong
share gains in France, Germany and Italy, and benefited from
acquisitions. Our food business
made continued progress, with good top-line growth and solid
income performance.
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Excluding items shown in the table below, 2006 second-quarter
diluted earnings per
share from continuing operations increased 6.8%.
Q2 2006 Q2 2005 Change Reported diluted EPS from continuing
operations $1.29 $1.40 (7.9%) 2005 tax items, net of minority
interest impact -- (0.11) Asset impairment and exit costs, net of
minority interest impact 0.09 0.03 Provision for airline industry
exposure 0.03 -- Diluted EPS, excluding above items $1.41 $1.32
6.8%
As shown in the reconciliation on Schedule 7, the 7.9% decline
in reported diluted
earnings per share from continuing operations was due primarily
to an unfavorable comparison
with the year-ago period, which benefited from $0.11 per share
in tax benefits, primarily related
to the American Jobs Creation Act (AJCA), higher Kraft
restructuring charges for the second
quarter of 2006 versus 2005, and an increase in the allowance
for losses related to the airline
industry at Philip Morris Capital Corporation (PMCC).
2006 Full-Year Forecast
Altria Group raised its previously announced projection for 2006
full-year diluted
earnings per share from continuing operations from a range of
$5.25 to $5.35 to a range of $5.40
to $5.50. This change reflects Krafts anticipated gain on the
redemption of its interest in United
Biscuits (benefiting Altria by approximately $0.09 per share),
Krafts forecast for lower than
expected restructuring charges for the full year (negatively
impacting Altria by approximately
$0.28 per share versus $0.36 per share in previous guidance),
and a charge of $0.03 per share for
the increase in the allowance for losses related to the airline
industry at PMCC. The factors
described in the Forward-Looking and Cautionary Statements
section of this release represent
continuing risks to this projection.
Conference Call
A conference call with members of the investment community and
news media will be
Webcast at 9:00 a.m. Eastern Time on July 25, 2006. Access is
available at www.altria.com.
http://www.altria.com/
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ALTRIA GROUP, INC.
As described in Note 15. Segment Reporting of Altria Group,
Inc.s 2005 Annual Report,
management reviews operating companies income, which is defined
as operating income before
corporate expenses and amortization of intangibles, to evaluate
segment performance and
allocate resources. Management believes it is appropriate to
disclose this measure to help
investors analyze business performance and trends. For a
reconciliation of operating companies
income to operating income, see the Condensed Statements of
Earnings contained in this release.
All references in this news release are to continuing
operations, unless otherwise noted.
2006 Second-Quarter Results
Net revenues for the second quarter of 2006 increased 4.0%
versus 2005 to $25.8 billion,
including $484 million from acquisitions offset by unfavorable
currency of $450 million.
Operating income decreased 1.5% to $4.4 billion, reflecting the
items described in the
attached reconciliation on Schedule 3, including $247 million in
charges for asset impairment
and exit costs, primarily at Kraft, an increase of $103 million
in the allowance for losses related
to the airline industry at PMCC and unfavorable currency of $67
million. These were partially
offset by higher results from operations of $227 million, and
the positive impact from
acquisitions of $81 million, primarily Sampoerna.
Earnings from continuing operations decreased 6.9% to $2.7
billion, reflecting the factors
mentioned above and favorable tax items of $227 million, or
$0.11 per share, in the second
quarter of 2005, primarily due to the repatriation of $6.0
billion of earnings under provisions of
the AJCA. The companys effective tax rate was 33.6% in the
second quarter of 2006 compared
to 28.7% for the same period in 2005, which reflected the
dividend repatriation under the AJCA.
Net earnings, including discontinued operations, increased 1.6%
to $2.7 billion, aided by
a favorable comparison with the second quarter of 2005, when
Altria recorded a $245 million net
loss from discontinued operations, net of minority interest, as
a result of Krafts sale of its sugar
confectionery business. Diluted earnings per share, including
discontinued operations as detailed
on Schedule 1, increased 0.8% to $1.29, driven by the factors
mentioned above.
During the second quarter of 2006, Altria Group, Inc. declared a
regular quarterly
dividend of $0.80 per common share, which represents an
annualized rate of $3.20 per common
share.
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DOMESTIC TOBACCO
2006 Second-Quarter Results
For the second quarter of 2006, Philip Morris USA (PM USA),
Altria Group, Inc.s
domestic tobacco business, delivered solid income growth and
strong share performance, driven
by Marlboro and Parliament.
Operating companies income increased 3.2% to $1.3 billion,
primarily driven by lower
wholesale and retail promotional allowance rates, partially
offset by lower volume.
Shipment volume of 47.2 billion units was down 4.3% from the
previous year, reflecting
changes in wholesale and retail trade inventory levels and the
timing of 4th of July trade
purchases versus the year-ago period. Adjusting for those
factors, PM USA estimates that
shipment volume declined approximately 2.0% in the second
quarter of 2006 versus the second
quarter of 2005. Premium mix for PM USA increased by 0.4
percentage points to 92.0% in the
second quarter of 2006.
As shown in the following table, PM USAs total retail share
increased to 50.5% in the
second quarter of 2006, driven by Marlboro and Parliament.
Philip Morris USA Quarterly Retail Share*
Q2 2006 Q2 2005 ChangeMarlboro 40.6% 40.0% 0.6 pp Parliament
1.9% 1.7% 0.2 pp Virginia Slims 2.3% 2.3% 0.0 pp Basic 4.2% 4.3%
-0.1 ppFocus Brands 49.0% 48.3% 0.7 pp Other PM USA 1.5% 1.7% -0.2
ppTotal PM USA 50.5% 50.0% 0.5 pp * IRI/Capstone Total Retail Panel
was developed to measure market share in retail stores selling
cigarettes. It is not designed to capture Internet or direct mail
sales.
PM USAs share of the premium category was up 0.1 share points to
62.1%, while its
share of the discount category grew 0.3 share points to 16.7%.
The total industrys premium
category share increased 0.9 points to 74.6% in the second
quarter of 2006, while the discount
category share correspondingly declined to 25.4%. Within the
discount category, share of the
deep discount segment (which includes both major manufacturers
private label brands and all
other manufacturers discount brands) declined 0.5 points to
11.3%.
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As part of its tobacco category adjacency growth strategy to
develop new revenue and
income sources for the future, PM USA began test marketing a
smoke-free and spit-free tobacco
pouch product, called Taboka, designed especially for adult
smokers interested in smokeless
tobacco alternatives to smoking. Taboka Tobaccopaks come in two
versions Taboka
Original and Taboka Green, which is a menthol version. PM USA
began test marketing
Taboka in the Indianapolis area in early July.
On June 19, the Illinois Supreme Court, with consent from both
parties, ordered the
return to PM USA of the approximately $2.15 billion in cash
securing the appeal bond in the
Price Lights case. A $6 billion note, which also secured the
2003 judgment, will be returned
to the company if the U.S. Supreme Court declines to hear the
plaintiffs appeal. PM USAs
obligations to deposit payments on the note and to pay
administrative fees to the Madison
County, Illinois clerk also were terminated by the courts order
on June 19.
INTERNATIONAL TOBACCO
2006 Second-Quarter Results
Philip Morris International Inc. (PMI), Altria Group, Inc.s
international tobacco
business, delivered strong volume and income performance in the
second quarter of 2006,
despite the challenging environment in Spain.
Cigarette shipment volume increased 5.7% to 213.9 billion units.
The impact of
acquisitions in Indonesia and Colombia, and favorable timing of
shipments in Italy, coupled with
solid gains in Argentina, France, Poland, Ukraine and worldwide
duty-free, were partially offset
by declines in Portugal and Spain, as well as Japan and Russia
due to unfavorable timing of
shipments. Excluding acquisitions, PMIs cigarette shipment
volume was up 0.8%. PMIs total
tobacco volume, which included 2.2 billion cigarette equivalent
units of other tobacco products
(OTPs), grew 6.0% to 216.1 billion units.
Operating companies income was up 5.7% to $2.1 billion, due
primarily to higher pricing
and the favorable impact of acquisitions of $81 million,
partially offset by a negative currency
impact of $68 million.
PMIs market share in the second quarter of 2006 advanced in many
countries, with gains
achieved in several major markets including Argentina, Austria,
Belgium, Brazil, Egypt, France,
Germany, Hungary, Indonesia, Italy, Korea, Malaysia, Mexico, the
Philippines, Poland,
Switzerland, Turkey and Ukraine.
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Total Marlboro cigarette shipments of 81.6 billion units were
down 2.0%, due mainly to
the impact of the timing of shipments in Japan, as well as lower
volume in Germany and
Argentina. Marlboro market shares were up in Australia, Brazil,
France, Greece, Hungary,
Italy, Japan, Korea, Kuwait, Malaysia, Mexico, the Philippines,
Russia, Saudi Arabia and
Ukraine. PMI recently launched Marlboro Wides in Portugal,
France and Spain, and plans
additional market introductions later this year.
In the European Union (EU) region, PMIs cigarette shipments were
up 0.8%, as gains in
France and Poland, and the favorable timing of shipments in
Italy, were largely offset by
declines in Spain, Germany and Portugal. PMIs cigarette market
share in the EU region was
39.3%, down 0.2 points as strong share performances in France,
Germany, Italy and Poland were
offset by declines in the Czech Republic, Portugal and Spain.
Importantly, PMIs share of total
tobacco consumption (cigarettes and OTPs) in the EU was up 0.4
points to 35.4%.
In Germany, total tobacco consumption declined 5.6%, but PMIs
total tobacco
shipments were up 1.2%. PMIs share of total tobacco consumption
increased 2.0 points to
30.8%, representing sequential share growth for the third
consecutive quarter. The total cigarette
market declined 7.8%, while PMIs cigarette volume was down 6.1%,
resulting in PMIs
cigarette market share rising 0.7 points to 37.6%, driven by
L&M. Industry volume for tobacco
portions declined 14.4% to 4.7 billion units in the second
quarter and PMIs share of tobacco
portions rose 11.0 points to 25.1%. As of April 2006, tobacco
portions can no longer be
manufactured under favorable tax conditions in Germany. However,
the retail availability of
tobacco portions is expected to remain through the third quarter
of this year.
In Italy, the total cigarette market declined 1.5%, primarily
reflecting two less selling
days versus the prior-year quarter. PMIs reported shipment
volume was up 19.8%, helped by
the timing of shipments and a favorable comparison with the
second quarter of 2005, when
PMIs new distributor in Italy reduced its inventory by 1.0
billion units. Market share in Italy
rose 0.9 points to 53.6%, driven by Chesterfield and Marlboro,
which increased 0.5 share
points to 22.8%.
In France, PMIs volume and share performed strongly, reflecting
a stable pricing
environment and moderate price gaps. Shipments rose 10.9% and
share grew 1.1 points to
42.8% behind the continued success of Marlboro and the Philip
Morris brand.
In Spain, the total cigarette market declined 2.5%, but was
essentially flat when adjusted
for two less selling days in the second quarter of 2006, and
reflects some recovery after the first
quarter impact of the new tobacco law implemented on January 1.
PMIs cigarette shipments
were down 14.2%, driven by the lower industry, unfavorable
inventory movements and market
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share, which was 3.0 points lower at 31.6%. On a sequential
basis, PMIs market share has been
resilient over the past three quarters at approximately 32%.
Most of PMIs share losses,
compared to last years second quarter, were the result of
declines in Chesterfield in the
medium-price category and L&M in the low-price category.
Premium-price Marlboros share
in the second quarter was down a more moderate 0.3 share points
to 16.7%, while Chesterfield
and L&M were impacted by the repositioning of a competitive
brand from the premium-price
segment to the low-price segment. In addition, PMIs share was
impacted by the continued
availability of competitive brands in the super-low segment,
priced as low as 1.85 euros for a
pack of 20 cigarettes. However, PMI believes that over time its
strong brand portfolio will
steadily regain market share losses in Spain.
In the Czech Republic, the total market was essentially flat.
PMIs shipments were down
12.3% and share was lower, reflecting intense price competition.
In Portugal, the total market
was down 11.2%, due primarily to lower overall consumption and
higher cross-border purchases
in Spain. PMIs shipments declined 16.1% in Portugal and share
was down 4.7 points to 79.7%,
due to severe price competition and excise tax absorption by
some manufacturers.
In Eastern Europe, the Middle East and Africa, PMIs shipments
grew 0.6%, due mainly
to continued gains in Ukraine as well as several North African
markets, largely offset by lower
shipments in Russia and Turkey. Shipments in Russia were down
2.1%, driven by unfavorable
distributor inventory movements versus the prior-year quarter
and declines for local lower-
margin offerings, as well as L&M, partially offset by gains
for Marlboro, Muratti and
Parliament. In Turkey, shipments were down 4.3%. However, market
share rose 2.1 points to
42.6%, driven mainly by the continued success of Lark, partially
offset by a decline in low-price
Bond Street. In Ukraine, shipments rose 5.8%, while market share
increased 0.6 points to
32.7%, driven by the continued growth of Marlboro and
Chesterfield.
In Asia (including Japan), volume increased 20.5%, driven by the
acquisition of
Sampoerna in Indonesia. Excluding the acquisition, volume was
down 2.4%, due primarily to a
difficult comparison with the prior-year quarter in Japan.
In Japan, the total market was inflated by trade loading
patterns and rose 13.8%,
reflecting trade purchasing ahead of a tax-driven price increase
on July 1, 2006. PMIs in-
market sales were up 12.7%, also reflecting trade purchasing in
advance of the July price
increase. Market share declined 0.2 points to 24.4%, although
Marlboros share was up 0.2
points to 9.8%. Shipments were down 1.1 billion units or 5.7%,
reflecting an unfavorable
comparison due to distributor inventory movements related to the
return of the Marlboro license
in Japan in May 2005.
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In Indonesia, PMI achieved a 27.5% share in the second quarter,
up 1.9 share points on a
pro forma basis versus the prior-year quarter, demonstrating the
continued strength of its brand
portfolio, led by A Mild, Dji Sam Soe and A Hijau.
PMIs volume in Latin America increased 10.1%, due to good
performances in Argentina
and Mexico, as well as the acquisition of Coltabaco in Colombia.
Excluding that acquisition,
volume advanced 6.0%. The total market in Argentina was up
10.2%, while PMIs shipments
grew 17.5% and share was up 4.1 points to 66.2%, driven by the
price repositioning of the Philip
Morris brand and the recent launch of Next in the ultra
low-price segment. In Mexico, PMI
shipments and market share advanced versus the prior-year
quarter, driven by the continued
momentum of Marlboro and Benson & Hedges.
FOOD
2006 Second-Quarter Results
Yesterday, Kraft Foods Inc. (Kraft) reported 2006 second-quarter
results. Krafts net
revenues were up 3.4% to $8.6 billion, reflecting positive
product mix, the impact of price
increases and gains in Eastern Europe and Latin America, as well
as solid growth in North
America, partially offset by the impact of divestitures, as well
as unfavorable currency of $32
million.
Ongoing volume growth of 0.9% included gains in cheese, meats
and coffee. Volume
growth also included an estimated one percentage point benefit
from the shift in timing of Easter
shipments versus last year. In addition, the impact of product
item pruning and the
discontinuation of select product lines represented
approximately 2% of prior-year volume.
Operating income decreased 5.8% to $1.2 billion for the second
quarter, due to higher
asset impairment, exit and implementation costs. However,
excluding those costs and
gains/losses on the sale of businesses, operating income
increased 9.3% and operating income
margin increased to 16.6% from 15.7%. These gains were driven by
net revenue growth and
cost savings. Higher packaging and energy costs partially offset
the expansion in operating
income margins.
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NORTH AMERICAN FOOD
2006 Second-Quarter Results
For the second quarter 2006, Kraft North America Commercial
(KNAC) net revenues
were up 3.4% to $5.9 billion, reflecting increases in Convenient
Meals, Snacks & Cereals,
Beverages and Cheese & Foodservice and favorable currency of
$48 million, partially offset by
declines in Grocery. Ongoing volume increased 1.0% due to higher
volume in Cheese &
Foodservice, Convenient Meals, Grocery and Snacks & Cereals,
partially offset by decreases in
Beverages, driven largely by the impact of discontinued
products. Operating companies income
decreased 1.5% to $1.0 billion, with higher asset impairment and
exit costs only partially offset
by productivity and restructuring savings, positive mix, and
favorable currency of $8 million.
INTERNATIONAL FOOD
2006 Second-Quarter Results
For the second quarter 2006, net revenues for Kraft
International Commercial (KIC)
increased 3.5% to $2.7 billion, reflecting increases in
Developing Markets, Oceania & North
Asia, partially offset by unfavorable currency of $80 million.
Ongoing volume was up 0.5%,
with an increase in the European Union partially offset by a
slight decline in Developing
Markets, Oceania & North Asia. Operating companies income
decreased 25.5% to $184 million,
due to higher restructuring and impairment charges, as well as
unfavorable currency of $7
million, partially offset by positive mix and price
increases.
FINANCIAL SERVICES
2006 Second-Quarter Results
Philip Morris Capital Corporation (PMCC) reported an operating
companies loss of $59
million for the second quarter of 2006, versus operating
companies income of $70 million for the
year-earlier period. Results reflect an increase of $103 million
in the allowance for losses related
to continuing issues within the airline industry. Consistent
with its strategic shift in 2003, PMCC
is focused on managing its existing portfolio of finance assets
in order to maximize gains and
generate cash flow from asset sales and related activities. PMCC
is no longer making new
investments and expects that its operating companies income will
fluctuate over time as leases
mature or assets are sold.
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Altria Group, Inc. Profile
Altria Group, Inc. owns approximately 88.1% of the outstanding
common shares of Kraft
Foods Inc. and 100% of the outstanding common shares of Philip
Morris International Inc.,
Philip Morris USA Inc. and Philip Morris Capital Corporation. In
addition, Altria Group, Inc.
owns approximately 28.7% of SABMiller plc. The brand portfolio
of Altria Group, Inc.s
consumer packaged goods companies includes such well-known names
as Kraft, Jacobs, L&M,
Marlboro, Maxwell House, Nabisco, Oreo, Oscar Mayer, Parliament,
Philadelphia, Post
and Virginia Slims. Altria Group, Inc. recorded 2005 net
revenues of $97.9 billion.
Trademarks and service marks mentioned in this release are the
registered property of, or
licensed by, the subsidiaries of Altria Group, Inc.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and
other forward-looking statements that
involve a number of risks and uncertainties and are made
pursuant to the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995. The following
important factors could cause actual
results and outcomes to differ materially from those contained
in such forward-looking statements.
Altria Group, Inc.s consumer products subsidiaries are subject
to changing prices for raw
materials; intense price competition; changes in consumer
preferences and demand for their products;
fluctuations in levels of customer inventories; the effects of
foreign economies and local economic and
market conditions; unfavorable currency movements and changes to
income tax laws. Their results are
dependent upon their continued ability to promote brand equity
successfully; to anticipate and respond
to new consumer trends; to develop new products and markets and
to broaden brand portfolios in order
to compete effectively with lower-priced products; to improve
productivity; and to respond effectively
to changing prices for their raw materials.
Altria Group, Inc.s tobacco subsidiaries (Philip Morris USA and
Philip Morris International)
continue to be subject to litigation, including risks associated
with adverse jury and judicial
determinations, courts reaching conclusions at variance with the
companys understanding of applicable
law, bonding requirements and the absence of adequate appellate
remedies to get timely relief from any
of the foregoing; price gaps and changes in price gaps between
premium and lowest-price brands;
legislation, including actual and potential excise tax
increases; discriminatory excise tax structures;
increasing marketing and regulatory restrictions; the effects of
price increases related to excise tax
increases and concluded tobacco litigation settlements on
consumption rates and consumer preferences
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within price segments; health concerns relating to the use of
tobacco products and exposure to
environmental tobacco smoke; governmental regulation; privately
imposed smoking restrictions; and
governmental and grand jury investigations.
Altria Group, Inc. and its subsidiaries are subject to other
risks detailed from time to time
in its publicly filed documents, including its Quarterly Report
on Form 10-Q for the period ended
March 31, 2006. Altria Group, Inc. cautions that the foregoing
list of important factors is not
complete and does not undertake to update any forward-looking
statements that it may make.
# # #
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ALTRIA GROUP, INC. and SubsidiariesCondensed Statements of
Earnings For the Quarters Ended June 30 (Unaudited) - Schedule
1
(in millions, except per share data)
Quarter Ended Quarter EndedJune 30,
2006June 30,
2005
Net revenues. . . . . . . . . . . . . . . . . . . . . . . .
25,769$ 24,784$Cost of sales . . . . . . . . . . . . . . . . . . .
. . . . . 9,393 9,134Excise taxes on products (*) . . . . . . . . .
. . . . 7,895 7,459Gross profit. . . . . . . . . . . . . . . . . .
. . . . . . . 8,481 8,191Marketing, administration and research
costs . 3,516 3,478Domestic tobacco headquarters relocationcharges
. . . . . . . . . . . . . . . . . . . . . . . . . . 2
Asset impairment and exit costs . . . . . . . . . . 247 50Losses
on sales of businesses, net . . . . . . . . . 8 1Provision for
airline industry exposure . . . . . . 103 Operating companies
income . . . . . . . . . . . . 4,607 4,660Amortization of
intangibles . . . . . . . . . . . . . . 9 4General corporate
expenses . . . . . . . . . . . . . 163 165Asset impairment and exit
costs . . . . . . . . . . 32 20Operating income . . . . . . . . . .
. . . . . . . . . . 4,403 4,471Interest and other debt expense, net
. . . . . . . 266 320Earnings from continuing operations
beforeincome taxes, minority interest, and equityearnings, net. . .
. . . . . . . . . . . . . . . . . . . . 4,137 4,151
Provision for income taxes . . . . . . . . . . . . . . 1,388
1,192Earnings from continuing operations beforeminority interest
and equity earnings, net . . 2,749 2,959
Minority interest in earnings from continuingoperations, and
equity earnings, net . . . . . . 38 47
Earnings from continuing operations . . . . . . . 2,711
2,912Loss from discontinued operations, net ofincome taxes and
minority interest (**) . . . . (245)
Net earnings . . . . . . . . . . . . . . . . . . . . . . . .
2,711$ 2,667$
Per share data (***):Basic earnings per share from
continuingoperations. . . . . . . . . . . . . . . . . . . . . . . .
. 1.30$ 1.41$
Basic earnings per share from discontinuedoperations. . . . . .
. . . . . . . . . . . . . . . . . . . $ (0.12$ )
Basic earnings per share. . . . . . . . . . . . . . . . 1.30$
1.29$
Diluted earnings per share from continuingoperations. . . . . .
. . . . . . . . . . . . . . . . . . . 1.29$ 1.40$
Diluted earnings per share from discontinuedoperations. . . . .
. . . . . . . . . . . . . . . . . . . . $ (0.12$ )
Diluted earnings per share . . . . . . . . . . . . . . 1.29$
1.28$
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Weighted average number of sharesoutstanding - Basic . . . . . .
. . . . . . . . . . . . 2,085 2,067
Weighted average number of sharesoutstanding - Diluted . . . . .
. . . . . . . . . . . . 2,102 2,087
(*) The detail of excise taxes on products soldis as
follows:
Domestic tobacco . . . . . . . . . . . . . . . . . . . . 931$
971$International tobacco . . . . . . . . . . . . . . . . . . 6,964
6,488Total excise taxes . . . . . . . . . . . . . . . . . . . .
7,895$ 7,459$
Currency decreased international tobaccoexcise taxes by . . . .
. . . . . . . . . . . . . . . . . 228$ $
(**) Discontinued operations in 2005 includes $(255) from loss
on sale, and $10 ofearnings, net of minority interest impact
(***) Basic and diluted earnings per share are computed for each
of the periods presented. Accordingly, the sum of the quarterly
earnings per share amounts may not agree to the year-to-date
amounts.
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ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by
Business Segment For the Quarters Ended June 30, (Unaudited) -
Schedule 2
(in millions)
DomesticTobacco
Internat'lTobacco
NorthAmericanFood
Internat'lFood
FinancialServices Total
2006 Net Revenues . 4,785$ 12,310$ 5,945$ 2,674$ 55$ 25,769$2005
Net Revenues . 4,790 11,565 5,751 2,583 95 24,784
Reconciliation:2005 Net Revenues . 4,790$ 11,565$ 5,751$ 2,583$
95$ 24,784$Divested businesses- 2005 . . . . . . . . . (87) (5)
(92)
Divested businesses- 2006 . . . . . . . . . 3 3
Implementation -2005 . . . . . . . . . . 1 1
Implementation -2006 . . . . . . . . . .
Acquired businesses 484 484Currency . . . . . . . . (418) 48
(80) (450)Operations . . . . . . . (5) 679 229 176 (40) 1,0392006
Net Revenues . 4,785$ 12,310$ 5,945$ 2,674$ 55$ 25,769$
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ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by
Business Segment For the Quarters Ended June 30, (Unaudited) -
Schedule 3
(in millions)
DomesticTobacco
Internat'lTobacco
NorthAmericanFood
Internat'lFood
FinancialServices Total
2006 Operating CompaniesIncome. . . . . . . . . . . . . 1,301$
2,139$ 1,042$ 184$ (59$ ) 4,607$
2005 Operating CompaniesIncome. . . . . . . . . . . . . 1,261
2,024 1,058 247 70 4,660
Reconciliation:2005 Operating CompaniesIncome. . . . . . . . . .
. . . 1,261$ 2,024$ 1,058$ 247$ 70$ 4,660$
Divested businesses -2005 . . . . . . . . . . . . . . 2 2
Domestic tobaccoheadquarters relocationcharges - 2005 . . . . .
. . 2 2
Asset impairment and exitcosts - 2005 . . . . . . . . . 21 5 24
50
Losses on sales ofbusinesses - 2005 . . . . . 1 1
Implementation costs -2005 . . . . . . . . . . . . . . 18 8
26
2 21 26 32 81
Divested businesses -2006 . . . . . . . . . . . . . .
Asset impairment and exitcosts - 2006 . . . . . . . . . (21)
(120) (106) (247)
Losses on sales ofbusinesses - 2006 . . . . . (8) (8)
Implementation costs -2006 . . . . . . . . . . . . . . (10) (7)
(17)
Provision for airlineindustry exposure - 2006 (103) (103)
(21) (138) (113) (103) (375)
Acquired businesses. . . . . 81 81Currency. . . . . . . . . . .
. . (68) 8 (7) (67)Operations . . . . . . . . . . . 38 102 88 25
(26) 2272006 Operating CompaniesIncome. . . . . . . . . . . . .
1,301$ 2,139$ 1,042$ 184$ (59$ ) 4,607$
15
-
ALTRIA GROUP, INC. and SubsidiariesCondensed Statements of
Earnings For the Six Months Ended June 30, (Unaudited) - Schedule
4
(in millions, except per share data)
6 Months Ended 6 Months EndedJune 30,
2006June 30,
2005
Net revenues . . . . . . . . . . . . . . . . . . . . . . .
50,124$ 48,402$Cost of sales . . . . . . . . . . . . . . . . . . .
. . . . . 18,308 17,805Excise taxes on products (*). . . . . . . .
. . . . . 15,441 14,615Gross profit . . . . . . . . . . . . . . . .
. . . . . . . . 16,375 15,982Marketing, administration and research
costs . 6,903 6,874Domestic tobacco headquarters relocationcharges
. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Italian antitrust charge. . . . . . . . . . . . . . . . . 61
Asset impairment and exit costs . . . . . . . . . . 451 203Losses
(gains) on sales of businesses, net . . . 11 (115)Provision for
airline industry exposure . . . . . . 103 Operating companies
income . . . . . . . . . . . . 8,846 9,017Amortization of
intangibles . . . . . . . . . . . . . . 16 8General corporate
expenses . . . . . . . . . . . . . 316 324Asset impairment and exit
costs . . . . . . . . . . 32 38Operating income . . . . . . . . . .
. . . . . . . . . . 8,482 8,647Interest and other debt expense,
net. . . . . . . 509 601Earnings from continuing operations
beforeincome taxes, minority interest, and equityearnings, net . .
. . . . . . . . . . . . . . . . . . . . 7,973 8,046
Provision for income taxes . . . . . . . . . . . . . . 1,677
2,483Earnings from continuing operations beforeminority interest
and equity earnings, net . . 6,296 5,563
Minority interest in earnings from continuingoperations, and
equity earnings, net . . . . . . 108 67
Earnings from continuing operations . . . . . . . 6,188
5,496Loss from discontinued operations, net ofincome taxes and
minority interest (**). . . . (233)
Net earnings . . . . . . . . . . . . . . . . . . . . . . . .
6,188$ 5,263$
Per share data (***):Basic earnings per share from
continuingoperations . . . . . . . . . . . . . . . . . . . . . . .
. 2.97$ 2.66$
Basic earnings per share from discontinuedoperations . . . . . .
. . . . . . . . . . . . . . . . . . $ (0.11$ )
Basic earnings per share . . . . . . . . . . . . . . . 2.97$
2.55$
Diluted earnings per share from continuingoperations . . . . . .
. . . . . . . . . . . . . . . . . . 2.94$ 2.64$
Diluted earnings per share from discontinuedoperations . . . . .
. . . . . . . . . . . . . . . . . . . $ (0.11$ )
Diluted earnings per share . . . . . . . . . . . . . . 2.94$
2.53$
16
-
Weighted average number of sharesoutstanding - Basic . . . . . .
. . . . . . . . . . . . 2,083 2,064
Weighted average number of sharesoutstanding - Diluted . . . . .
. . . . . . . . . . . . 2,102 2,084
(*) The detail of excise taxes on products soldis as
follows:
Domestic tobacco . . . . . . . . . . . . . . . . . . . . 1,786$
1,816$International tobacco . . . . . . . . . . . . . . . . . .
13,655 12,799Total excise taxes . . . . . . . . . . . . . . . . . .
. . 15,441$ 14,615$
Currency decreased international tobaccoexcise taxes by . . . .
. . . . . . . . . . . . . . . . . 589$ $
(**) Discontinued operations in 2005 includes $(255) from loss
on sale, and $22 ofearnings, net of minority interest impact
(***) Basic and diluted earnings per share are computed for each
of the periods presented. Accordingly, the sum of the quarterly
earnings per share amounts may not agree to the year-to-date
amounts.
17
-
ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by
Business Segment For the Six Months Ended June 30 (Unaudited) -
Schedule 5
(in millions)
DomesticTobacco
Internat'lTobacco
NorthAmericanFood
Internat'lFood
FinancialServices Total
2006 Net Revenues . 9,108$ 24,111$ 11,588$ 5,154$ 163$
50,124$2005 Net Revenues . 8,936 22,910 11,304 5,089 163 48,402
Reconciliation:2005 Net Revenues . 8,936$ 22,910$ 11,304$ 5,089$
163$ 48,402$Divested businesses- 2005 . . . . . . . . . (210) (22)
(232)
Divested businesses- 2006 . . . . . . . . . 18 18
Implementation -2005 . . . . . . . . . . 1 1
Implementation -2006 . . . . . . . . . .
Acquired businesses 1,192 1,192Currency . . . . . . . . (1,072)
72 (199) (1,199)Operations . . . . . . . 172 1,081 403 286
1,9422006 Net Revenues . 9,108$ 24,111$ 11,588$ 5,154$ 163$
50,124$
18
-
ALTRIA GROUP, INC. and SubsidiariesSelected Financial Data by
Business Segment For the Six Months Ended June 30 (Unaudited) -
Schedule 6
(in millions)
DomesticTobacco
Internat'lTobacco
NorthAmericanFood
Internat'lFood
FinancialServices Total
2006 Operating CompaniesIncome. . . . . . . . . . . . . 2,417$
4,106$ 1,938$ 348$ 37$ 8,846$
2005 Operating CompaniesIncome. . . . . . . . . . . . . 2,299
4,099 1,968 540 111 9,017
Reconciliation:2005 Operating CompaniesIncome. . . . . . . . . .
. . . 2,299$ 4,099$ 1,968$ 540$ 111$ 9,017$
Divested businesses -2005 . . . . . . . . . . . . . . (2) (3)
(5)
Domestic tobaccoheadquarters relocationcharges - 2005 . . . . .
. . 3 3
Asset impairment and exitcosts - 2005 . . . . . . . . . 24 122
57 203
Losses (gains) on sales ofbusinesses - 2005 . . . . . 1 (116)
(115)
Implementation costs -2005 . . . . . . . . . . . . . . 32 13
45
3 24 153 (49) 131
Divested businesses -2006 . . . . . . . . . . . . . . (1)
(1)
Italian antitrust charge -2006 . . . . . . . . . . . . . . (61)
(61)
Asset impairment and exitcosts - 2006 . . . . . . . . . (23)
(254) (174) (451)
Losses on sales ofbusinesses - 2006 . . . . . (11) (11)
Implementation costs -2006 . . . . . . . . . . . . . . (17) (13)
(30)
Provision for airlineindustry exposure - 2006 (103) (103)
(84) (283) (187) (103) (657)
Acquired businesses. . . . . 227 227Currency. . . . . . . . . .
. . . (224) 13 (19) (230)Operations . . . . . . . . . . . 115 64 87
63 29 3582006 Operating CompaniesIncome. . . . . . . . . . . . .
2,417$ 4,106$ 1,938$ 348$ 37$ 8,846$
19
-
ALTRIA GROUP, INC. and SubsidiariesNet Earnings For the Quarters
Ended June 30 (Unaudited) - Schedule 7
(in millions)
Net Earnings
2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . .
. . . . . 2,711$2005 Continuing Earnings . . . . . . . . . . . . .
. . . . . . . . . . . . 2,912$
Reconciliation:2005 Continuing Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . 2,912$2005 Domestic tobacco headquarters
relocation charges . . . . 12005 Asset impairment, exit and
implementation costs, net ofminority interest impact . . . . . . .
. . . . . . . . . . . . . . . . . . 47
2005 Losses on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 1
2005 Corporate asset impairment and exit costs . . . . . . . . .
132005 Tax items, net of minority interest impact . . . . . . . . .
. (227)
(165)
2006 Asset impairment, exit and implementation costs, net
ofminority interest impact . . . . . . . . . . . . . . . . . . . .
. . . . . (159)
2006 Losses on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . (3)
2006 Corporate asset impairment and exit costs . . . . . . . . .
(21)2006 Provision for airline industry exposure. . . . . . . . . .
. . . (66)2006 Tax items, net of minority interest impact . . . . .
. . . . . (2)
(251)
Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (44)Change in shares . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . Change in tax rate . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 36Operations . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2232006 Continuing Earnings . . . . . . . . . . . . . . . . . . . .
. . . . . 2,711$2006 Discontinued Earnings . . . . . . . . . . . .
. . . . . . . . . . . . $2006 Net Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 2,711$
20
-
ALTRIA GROUP, INC. and SubsidiariesDiluted Earnings Per Share
For the Quarters Ended June 30 (Unaudited) - Schedule 7
(Dollars per share)
Diluted E.P.S. (*)
2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . .
. . . . . . . 1.29$2005 Continuing Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . . . 1.40$
Reconciliation:2005 Continuing Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . . . 1.40$2005 Domestic tobacco
headquarters relocation charges . . . . . 2005 Asset impairment,
exit and implementation costs, net ofminority interest impact . . .
. . . . . . . . . . . . . . . . . . . . . . . . 0.02
2005 Losses on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
2005 Corporate asset impairment and exit costs . . . . . . . . .
. . 0.012005 Tax items, net of minority interest impact . . . . . .
. . . . . . (0.11)
(0.08)
2006 Asset impairment, exit and implementation costs, net
ofminority interest impact . . . . . . . . . . . . . . . . . . . .
. . . . . . . (0.08)
2006 Losses on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
2006 Corporate asset impairment and exit costs . . . . . . . . .
. . (0.01)2006 Provision for airline industry exposure . . . . . .
. . . . . . . . (0.03)2006 Tax items, net of minority interest
impact . . . . . . . . . . . .
(0.12)
Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . (0.02)Change in shares . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . (0.01)Change in tax
rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 0.02Operations . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 0.102006 Continuing Earnings . . . . . . .
. . . . . . . . . . . . . . . . . . . . 1.29$2006 Discontinued
Earnings . . . . . . . . . . . . . . . . . . . . . . . . . $2006
Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 1.29$
(*) Basic and diluted earnings per share are computed for each
of the periodspresented. Accordingly, the sum of the quarterly
earnings per share amounts maynot agree to the year-to-date
amounts.
21
-
ALTRIA GROUP, INC. and SubsidiariesNet Earnings For the Six
Months Ended June 30 (Unaudited) - Schedule 8
(in millions)
Net Earnings
2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . .
. . . . . 6,188$2005 Continuing Earnings . . . . . . . . . . . . .
. . . . . . . . . . . . 5,496$
Reconciliation:2005 Continuing Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . 5,496$2005 Domestic tobacco headquarters
relocation charges . . . . 22005 Asset impairment, exit and
implementation costs, net ofminority interest impact . . . . . . .
. . . . . . . . . . . . . . . . . . 144
2005 Gains on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . (64)
2005 Corporate asset impairment and exit costs . . . . . . . . .
252005 Tax items, net of minority interest impact . . . . . . . . .
. (266)
(159)
2006 Italian antitrust charge . . . . . . . . . . . . . . . . .
. . . . . . (61)2006 Asset impairment, exit and implementation
costs, net ofminority interest impact . . . . . . . . . . . . . . .
. . . . . . . . . . (284)
2006 Losses on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . (6)
2006 Corporate asset impairment and exit costs . . . . . . . . .
(21)2006 Provision for airline industry exposure. . . . . . . . . .
. . . (66)2006 Tax items, net of minority interest impact . . . . .
. . . . . 965
527
Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (151)Change in shares . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . Change in tax rate . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 67Operations . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4082006 Continuing Earnings . . . . . . . . . . . . . . . . . . . .
. . . . . 6,188$2006 Discontinued Earnings . . . . . . . . . . . .
. . . . . . . . . . . . $2006 Net Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 6,188$
22
-
ALTRIA GROUP, INC. and SubsidiariesDiluted Earnings Per Share
For the Six Months Ended June 30 (Unaudited) - Schedule 8
(Dollars per share)
Diluted E.P.S. (*)
2006 Continuing Earnings . . . . . . . . . . . . . . . . . . . .
. . . . . . . 2.94$2005 Continuing Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . . . 2.64$
Reconciliation:2005 Continuing Earnings . . . . . . . . . . . .
. . . . . . . . . . . . . . . 2.64$2005 Domestic tobacco
headquarters relocation charges . . . . . 2005 Asset impairment,
exit and implementation costs, net ofminority interest impact . . .
. . . . . . . . . . . . . . . . . . . . . . . . 0.07
2005 Gains on sales of businesses, net of minority
interestimpact . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . (0.03)
2005 Corporate asset impairment and exit costs . . . . . . . . .
. . 0.012005 Tax items, net of minority interest impact . . . . . .
. . . . . . (0.13)
(0.08)
2006 Italian antitrust charge . . . . . . . . . . . . . . . . .
. . . . . . . . (0.03)2006 Asset impairment, exit and
implementation costs, net ofminority interest impact . . . . . . .
. . . . . . . . . . . . . . . . . . . . (0.14)
2006 Loss on sales of businesses, net of minority interestimpact
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .
2006 Corporate asset impairment and exit costs . . . . . . . . .
. . (0.01)2006 Provision for airline industry exposure . . . . . .
. . . . . . . . (0.03)2006 Tax items, net of minority interest
impact . . . . . . . . . . . . 0.46
0.25
Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . (0.07)Change in shares . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . (0.03)Change in tax
rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 0.03Operations . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 0.202006 Continuing Earnings . . . . . . .
. . . . . . . . . . . . . . . . . . . . 2.94$2006 Discontinued
Earnings . . . . . . . . . . . . . . . . . . . . . . . . . $2006
Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 2.94$
(*) Basic and diluted earnings per share are computed for each
of the periodspresented. Accordingly, the sum of the quarterly
earnings per share amounts maynot agree to the year-to-date
amounts.
23
-
ALTRIA GROUP, INC. and SubsidiariesCondensed Balance Sheets
(Unaudited) - Schedule 9
(in millions, except ratios)
June 30,2006
December 31,2005
AssetsCash and cash equivalents . . . . . . . . . . . . . . . .
. . 5,613$ 6,258$All other current assets. . . . . . . . . . . . .
. . . . . . . . 19,818 19,523Property, plant and equipment, net . .
. . . . . . . . . . 16,876 16,678Goodwill . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 32,154 31,219Other intangible
assets, net . . . . . . . . . . . . . . . . . 12,194 12,196Other
assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,250 14,667Total consumer products assets. . . . . . . . . . . .
. . . 99,905 100,541Total financial services assets . . . . . . . .
. . . . . . . . 6,859 7,408Total assets. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 106,764$ 107,949$
Liabilities and Stockholders' EquityShort-term borrowings . . .
. . . . . . . . . . . . . . . . . . 3,264$ 2,836$Current portion of
long-term debt . . . . . . . . . . . . . 2,852 3,430Accrued
settlement charges . . . . . . . . . . . . . . . . . 2,233 3,503All
other current liabilities . . . . . . . . . . . . . . . . . . .
16,838 16,389Long-term debt . . . . . . . . . . . . . . . . . . . .
. . . . . . 14,186 15,653Deferred income taxes . . . . . . . . . .
. . . . . . . . . . . 7,825 8,492Other long-term liabilities . . .
. . . . . . . . . . . . . . . . 12,757 13,813Total consumer
products liabilities . . . . . . . . . . . . . 59,955 64,116Total
financial services liabilities . . . . . . . . . . . . . . 7,118
8,126Total liabilities . . . . . . . . . . . . . . . . . . . . . .
. . . . . 67,073 72,242Total stockholders' equity . . . . . . . . .
. . . . . . . . . . 39,691 35,707Total liabilities and
stockholders' equity . . . . . . . . . 106,764$ 107,949$
Total consumer products debt . . . . . . . . . . . . . . . .
20,302$ 21,919$Debt/equity ratio - consumer products . . . . . . .
. . . 0.51 0.61Total debt . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 21,611$ 23,933$Total debt/equity ratio . . . . .
. . . . . . . . . . . . . . . . 0.54 0.67
24
-
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XBRL taxonomylinkbase mo-20060630_pre.xml
XBRL taxonomylinkbase mo-20060630_cal.xml
XBRL taxonomylinkbase mo-20060630_lab.xml
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The XBRL 2.1 instance document.Double click to open, or right
click for menu.
Condensed Statement Earnings link:presentationLink
link:calculationLink Revenue By Business Segment
link:presentationLink Revenue By Business Segment
link:presentationLink Operating Companies Income By Business
Segment link:presentationLink Balance Sheets link:presentationLink
link:calculationLink Net Earnings link:presentationLink Diluted
Earnings Per Share link:presentationLink
An extension taxonomy schema.Double click to open, or right
click for menu.
An extension taxonomy linkbase.Double click to open, or right
click for menu.
An extension taxonomy linkbase.Double click to open, or right
click for menu.
Accrued Settlement Charges Acquired Businesses, Operating
Companies Income Acquired Businesses, Net Revenue Acquired
Businesses, Operating Revenue Asset Impairment, Exit and
Implementation Costs, Net Minority Interest Impact Balance Sheet
Basic Earnings Per Share, Continuing Operations Change in Shares,
Continuing Earnings Change in Tax Rate, Continuing Earnings Asset
Impairment and Exit Costs, Operating Companies Income Operating
Expenses, Companies Operating Companies Income Companies Operating
Profit Reconciliation Consumer Products Assets, Total Consumer
Products Liabilities, Total Continuing Earnings Reconciliation
Asset Impairment and Exit Costs, Corporate Asset Impairment and
Exit Costs, Companies Asset Impairment and Exit Costs, Continuing
Earnings General Expenses, Corporate Operating Expenses, Corporate
Currency, Operating Companies Income Currency, Continuing Earnings
Currency, Net Revenues Diluted Earnings Per Share, Continuing
Operations Diluted Earnings Per Share, Discontinued Operations
Divested Businesses, Net Revenue Divested Businesses, Operating
Companies Income Excise Taxes on Products Financial Services
Assets, Total Financial Services Liabilities, Total Domestic
Tobacco Headquarters Relocation Charges Domestic Tobacco
Headquarters Relocation Charges, Continuing Earnings Implementation
Costs, Operating Companies Income Implementation, Net Revenue
Income/(Loss) from Continuing Operations After Minority Interest
Income (Loss) Continuing Operations After Minority Interest
Reconciliation, Total Earnings from continuing operations before
income taxes, minority interest, and equity earnings, net
International Agreements International Agreements Income (Loss)
Continuing Operations After Minority Interest Investment
Impairment, Net Minority Interest Impact Investment Impairment,
Operating Companies Income Italian Antitrust Charge Italian
Antitrust Charge, Operating Companies Income Long Term Deferred
Income Taxes Liability Losses (Gains) on Sales of Businesses, Net
Losses on Sales of Businesses, Operating Companies Income Loss on
Sales of Businesses, Net of Minority Interest Impact Loss on Sales
of Businesses, Net of Minority Interest Impact, Diluted EPS Gains
on Sales of Businesses, Operating Companies Income Gain on Sales of
Businesses, Net of Minority Interest Impact Gain on Sales of
Businesses, Net of Minority Interest Impact, Diluted EPS Marketing,
Administration and Research Costs Minority Interest in Earnings
from Continuing Operations, and Equity Earnings, Net Operations,
Operating Companies Income Operations, Continuing Earnings
Operations, Net Revenues Other Intangible Assets Excluding
Goodwill, Net Provision for Airline Industry Exposure Provision
Airline Industry Exposure, Continuing Earnings Quota Buy Out
Revenue Reconciliation Tax Items, Net Minority Interest Impact
Tobacco Pool Companies Operating Profit Reconciliation, Total Basic
Earnings Per Share, Discontinued Operations Asset Impairment, Exit
and Implementation Costs, Net Minority Interest Impact, Diluted EPS
Change in Shares, Continuing Earnings, Diluted EPS Change in Tax
rate, Continuing Earnings, Diluted EPS Total consumer products debt
Asset Impairment and Exit Costs, Continuing Earnings, Diluted EPS
Currency, Continuing Earnings, Diluted EPS Debt/equity ratio -
consumer products Total debt/equity ratio Total debt Domestic
Tobacco Headquarters Relocation Charges, Continuing Earnings,
Diluted EPS Income/ (Loss) from Continuing Operations After
Minority Interest, Diluted EPS Income/ (Loss) Continuing Operations
After Minority Interest, Reconciliation Total, Diluted EPS Income/
(Loss) Discontinued Operations, Net Tax Effect, Diluted EPS Italian
Antitrust Charge, Diluted EPS Net Income, Diluted EPS Operations,
Continuing Earnings, Diluted EPS Tax Items, Net Minority Interest
Impact, Diluted EPS Currency Decreased International Tobacco Excise
Taxes Domestic Tobacco Headquarters Relocation Charges, Operating
Companies Income Italian Antitrust Charge, Continuing Earnings
Provision for Airline Industry Exposure, Operating Companies Income
Provision for airline industry exposure, Diluted EPS
An extension taxonomy linkbase.Double click to open, or right
click for menu.
Condensed Statements of Earnings For the Quarters Ended June 30
(Unaudited) - Schedule 1Net revenuesCost of salesExcise taxes on
products (*)Gross profitMarketing, administration and research
costsDomestic tobacco headquarters relocation chargesAsset
impairment and exit costsLosses on sales of businesses,
netProvision for airline industry exposureOperating companies
incomeAmortization of intangiblesGeneral corporate expensesAsset
impairment and exit costsOperating incomeInterest and other debt
expense, netEarnings from continuing operations before income
taxes, minority interest, and equity earnings, netProvision for
income taxesEarnings from continuing operations before minority
interest and equity earnings, netMinority interest in earnings from
continuing operations, and equity earnings, netEarnings from
continuing operationsLoss from discontinued operations, net of
income taxes and minority interest (**)Net earningsPer share data
(***):Basic earnings per share from continuing operationsBasic
earnings per share from discontinued operationsBasic earnings per
shareDiluted earnings per share from continuing operationsDiluted
earnings per share from discontinued operationsDiluted earnings per
shareWeighted average number of shares outstanding - BasicWeighted
average number of shares outstanding - Diluted(*) The detail of
excise taxes on products sold is as follows:Domestic
tobaccoInternational tobaccoTotal excise taxesCurrency decreased
international tobacco excise taxes by(**) Discontinued operations
in 2005 includes $(255) from loss on sale, and $10 of earnings, net
of minority interest impact(***) Basic and diluted earnings per
share are computed for each of the periods presented. Accordingly,
the sum of the quarterly earnings per share amounts may not agree
to the year-to-date amounts.
Selected Financial Data by Business Segment For the Quarters
Ended June 30, (Unaudited) - Schedule 22006 Net Revenues2005 Net
RevenuesReconciliation:2005 Net RevenuesDivested businesses -
2005Divested businesses - 2006Implementation - 2005Implementation -
2006Acquired businessesCurrencyOperations2006 Net Revenues
Selected Financial Data by Business Segment For the Quarters
Ended June 30, (Unaudited) - Schedule 32006 Operating Companies
Income2005 Operating Companies IncomeReconciliation:2005 Operating
Companies IncomeDivested businesses - 2005Domestic tobacco
headquarters relocation charges - 2005Asset impairment and exit
costs - 2005Losses on sales of businesses - 2005Implementation
costs - 2005Divested businesses - 2006Asset impairment and exit
costs - 2006Losses on sales of businesses - 2006Implementation
costs - 2006Provision for airline industry exposure - 2006Acquired
businessesCurrencyOperations2006 Operating Companies Income
Condensed Statements of Earnings For the Six Months Ended June
30, (Unaudited) - Schedule 4Net revenuesCost of salesExcise taxes
on products (*)Gross profitMarketing, administration and research
costsDomestic tobacco headquarters relocation chargesItalian
antitrust chargeAsset impairment and exit costsLosses (gains) on
sales of businesses, netProvision for airline industry
exposureOperating companies incomeAmortization of
intangiblesGeneral corporate expensesAsset impairment and exit
costsOperating incomeInterest and other debt expense, netEarnings
from continuing operations before income taxes, minority interest,
and equity earnings, netProvision for income taxesEarnings from
continuing operations before minority interest and equity earnings,
netMinority interest in earnings from continuing operations, and
equity earnings, netEarnings from continuing operationsLoss from
discontinued operations, net of income taxes and minority interest
(**)Net earningsPer share data (***):Basic earnings per share from
continuing operationsBasic earnings per share from discontinued
operationsBasic earnings per shareDiluted earnings per share from
continuing operationsDiluted earnings per share from discontinued
operationsDiluted earnings per shareWeighted average number of
shares outstanding - BasicWeighted average number of shares
outstanding - Diluted(*) The detail of excise taxes on products
sold is as follows:Domestic tobaccoInternational tobaccoTotal
excise taxesCurrency decreased international tobacco excise taxes
by(**) Discontinued operations in 2005 includes $(255) from loss on
sale, and $22 of earnings, net of minority interest impact(***)
Basic and diluted earnings per share are computed for each of the
periods presented. Accordingly, the sum of the quarterly earnings
per share amounts may not agree to the year-to-date amounts.
Selected Financial Data by Business Segment For the Six Months
Ended June 30 (Unaudited) - Schedule 52006 Net Revenues2005 Net
RevenuesReconciliation:2005 Net RevenuesDivested businesses -
2005Divested businesses - 2006Implementation - 2005Implementation -
2006Acquired businessesCurrencyOperations2006 Net Revenues
Selected Financial Data by Business Segment For the Six Months
Ended June 30 (Unaudited) - Schedule 62006 Operating Companies
Income2005 Operating Companies IncomeReconciliation:2005 Operating
Companies IncomeDivested businesses - 2005Domestic tobacco
headquarters relocation charges - 2005Asset impairment and exit
costs - 2005Losses (gains) on sales of businesses -
2005Implementation costs - 2005Divested businesses - 2006Italian
antitrust charge - 2006Asset impairment and exit costs - 2006Losses
on sales of businesses - 2006Implementation costs - 2006Provision
for airline industry exposure - 2006Acquired
businessesCurrencyOperations2006 Operating Companies Income
Net Earnings For the Quarters Ended June 30 (Unaudited) -
Schedule 72006 Continuing Earnings2005 Continuing
EarningsReconciliation:2005 Continuing Earnings2005 Domestic
tobacco headquarters relocation charges2005 Asset impairment, exit
and implementation costs, net of minority interest impact2005
Losses on sales of businesses, net of minority interest impact2005
Corporate asset impairment and exit costs2005 Tax items, net of
minority interest impact2006 Asset impairment, exit and
implementation costs, net of minority interest impact2006 Losses on
sales of businesses, net of minority interest impact2006 Corporate
asset impairment and exit costs2006 Provision for airline industry
exposure2006 Tax items, net of minority interest
impactCurrencyChange in sharesChange in tax rateOperations2006
Continuing Earnings2006 Discontinued Earnings2006 Net Earnings
Diluted Earnings Per Share For the Quarters Ended June 30
(Unaudited) - Schedule 72006 Continuing Earnings2005 Continuing
EarningsReconciliation:2005 Continuing Earnings2005 Domestic
tobacco headquarters relocation charges2005 Asset impairment, exit
and implementation costs, net of minority interest impact2005
Losses on sales of businesses, net of minority interest impact2005
Corporate asset impairment and exit costs2005 Tax items, net of
minority interest impact2006 Asset impairment, exit and
implementation costs, net of minority interest impact2006 Losses on
sales of businesses, net of minority interest impact2006 Corporate
asset impairment and exit costs2006 Provision for airline industry
exposure2006 Tax items, net of minority interest
impactCurrencyChange in sharesChange in tax rateOperations2006
Continuing Earnings2006 Discontinued Earnings2006 Net Earnings(*)
Basic and diluted earnings per share are computed for each of the
periods presented. Accordingly, the sum of the quarterly earnings
per share amounts may not agree to the year-to-date amounts.
Net Earnings For the Six Months Ended June 30 (Unaudited) -
Schedule 82006 Continuing Earnings2005 Continuing
EarningsReconciliation:2005 Continuing Earnings2005 Domestic
tobacco headquarters relocation charges2005 Asset impairment, exit
and implementation costs, net of minority interest impact2005 Gains
on sales of businesses, net of minority interest impact2005
Corporate asset impairment and exit costs2005 Tax items, net of
minority interest impact2006 Italian antitrust charge2006 Asset
impairment, exit and implementation costs, net of minority interest
impact2006 Losses on sales of businesses, net of minority interest
impact2006 Corporate asset impairment and exit costs2006 Provision
for airline industry exposure2006 Tax items, net of minority
interest impactCurrencyChange in sharesChange in tax
rateOperations2006 Continuing Earnings2006 Discontinued
Earnings2006 Net Earnings
Diluted Earnings Per Share For the Six Months Ended June 30
(Unaudited) - Schedule 82006 Continuing Earnings2005 Continuing
EarningsReconciliation:2005 Continuing Earnings2005 Domestic
tobacco headquarters relocation charges2005 Asset impairment, exit
and implementation costs, net of minority interest impact2005 Gains
on sales of businesses, net of minority interest impact2005
Corporate asset impairment and exit costs2005 Tax items, net of
minority interest impact2006 Italian antitrust charge2006 Asset
impairment, exit and implementation costs, net of minority interest
impact2006 Loss on sales of businesses, net of minority interest
impact2006 Corporate asset impairment and exit costs2006 Provision
for airline industry exposure2006 Tax items, net of minority
interest impactCurrencyChange in sharesChange in tax
rateOperations2006 Continuing Earnings2006 Discontinued
Earnings2006 Net Earnings(*) Basic and diluted earnings per share
are computed for each of the periods presented. Accordingly, the
sum of the quarterly earnings per share amounts may not agree to
the year-to-date amounts.
Condensed Balance Sheets (Unaudited) - Schedule 9AssetsCash and
cash equivalentsAll other current assetsProperty, plant and
equipment, netGoodwillOther intangible assets, netOther assetsTotal
consumer products assetsTotal financial services assetsTotal
assetsLiabilities and Stockholders' EquityShort-term
borrowingsCurrent portion of long-term debtAccrued settlement
chargesAll other current liabilitiesLong-term debtDeferred income
taxesOther long-term liabilitiesTotal consumer products
liabilitiesTotal financial services liabilitiesTotal
liabilitiesTotal stockholders' equityTotal liabilities and
stockholders' equityTotal consumer products debtDebt/equity ratio -
consumer productsTotal debtTotal debt/equity ratio
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