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SEC Filings

8-K
ALTRIA GROUP, INC. filed this Form 8-K on 02/01/2018
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Altria’s full-year 2017 reported diluted EPS decreased 27.1% to $5.31, primarily driven by a lower gain on the AB InBev/SABMiller business combination and lower equity earnings from Altria’s beer investment, partially offset by lower reported taxes, the 2016 loss on early extinguishment of debt, higher reported OCI in the smokeable and smokeless products segments and fewer shares outstanding. Altria’s full-year 2017 adjusted diluted EPS, which excludes the special items shown in Table 1, increased 11.9% to $3.39, primarily driven by higher adjusted OCI in the smokeable and smokeless products segments, a lower adjusted effective tax rate and fewer shares outstanding.
Table 1 - Altria’s Adjusted Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter
 
Full Year
 
2017
2016
Change
 
2017
2016
Change
Reported diluted EPS
$
2.60

$
5.27

(50.7)%
 
$
5.31

$
7.28

(27.1)%
NPM Adjustment Items


 
 

0.01

 
Tobacco and health litigation items
0.02

0.01

 
 
0.03

0.04

 
AB InBev/SABMiller special items
0.02

(0.07
)
 
 
0.05

(0.03
)
 
Loss on early extinguishment of debt


 
 

0.28

 
Asset impairment, exit, implementation and acquisition-related costs

0.03

 
 
0.03

0.07

 
Patent litigation settlement

0.01

 
 

0.01

 
Gain on AB InBev/SABMiller business combination

(4.56
)
 
 
(0.15
)
(4.61
)
 
Settlement charge for lump sum pension payments
0.03


 
 
0.03


 
Tax items
(1.76
)
(0.01
)
 
 
(1.91
)
(0.02
)
 
Adjusted diluted EPS
$
0.91

$
0.68

33.8%
 
$
3.39

$
3.03

11.9%
Note: For details of pre-tax, tax and after-tax amounts, see Schedules 7 and 9.
AB InBev/SABMiller Special Items
In the fourth quarter of 2017, earnings from Altria’s equity investment in AB InBev included net pre-tax charges of $51 million, consisting primarily of Altria’s share of AB InBev’s Brazilian tax item. In the fourth quarter of 2016, Altria recorded net pre-tax income of $236 million related to SABMiller special items.
For the full year 2017, earnings from Altria’s equity investment in AB InBev included net pre-tax charges of $160 million. For full year 2016, earnings from Altria’s equity investment in SABMiller included net pre-tax income of $89 million.
The EPS impact of these items is shown in Table 1 and Schedules 7 and 9.
Loss on Early Extinguishment of Debt
In 2016, Altria completed a cash tender offer in which it purchased approximately $933 million aggregate principal amount of its senior unsecured 9.95% and 10.20% notes due in 2038 and 2039,

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