Altria revises its guidance for 2013 full-year reported diluted EPS from a range of $2.57 to $2.62 to a range of $2.22 to $2.27, reflecting the Estimated Charge and the other special items detailed in Table 1 below.
Altria reaffirms its guidance for 2013 full-year adjusted diluted EPS, which excludes the special items shown in Table 1 below, to be in the range of $2.36 to $2.41, representing a growth rate of 7% to 9% from an adjusted diluted EPS base of $2.21 per share in 2012. Altria’s reaffirmation of the 2013 full-year adjusted diluted EPS guidance includes an increase in Altria’s 2013 full-year effective tax rate on operations that Altria expects to result from the tender offer, as discussed below.
The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this forecast. Reconciliations of full-year adjusted to reported diluted EPS are shown in Table 1 below.
|Table 1 - Altria’s Full-Year Earnings Per Share Guidance Excluding Special Items|
|Reported diluted EPS||$||2.22||to||$||2.27||$||2.06||8||%||to||10||%|
|NPM Adjustment items 1||(0.21||)||-|
|Asset impairment, exit and implementation costs||-||0.01|
|SABMiller special items||0.01||(0.08||)|
|PMCC leveraged lease benefit||-||(0.03||)|
|Loss on early extinguishment of debt||0.35||0.28|
|Tax items 2||(0.01||)||(0.03||)|
|Adjusted diluted EPS||$||2.36||to||$||2.41||$||2.21||7||%||to||9||%|
|1 Reflects the impact of Philip Morris USA Inc.’s (PM USA) settlement with certain states of the non-participating manufacturer adjustment (NPM Adjustment) disputes for 2003-2012 (NPM Adjustment Settlement) ($0.16) and the diligent enforcement rulings of the arbitration panel presiding over the NPM Adjustment dispute for 2003 (NPM Arbitration Panel Decision) ($0.05).|
|2 Excludes the tax impact of the Philip Morris Capital Corporation (PMCC) leveraged lease benefit.|
2013 Full-Year Tax Rate GuidanceAltria anticipates that its 2013 full-year effective tax rate on operations will increase by half of one percent to approximately 36.2% due to a reduction in certain consolidated tax benefits resulting from the tender offer. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this forecast. Reconciliations of 2013 full-year effective tax rate on operations to reported effective tax rate are shown in Table 2 below.
|Table 2 - Altria’s 2013 Tax Rates|
|Reported effective tax rate||35.6||%|
|Tax benefit from Mondelēz International, Inc. tax matters||0.2||%|
|Other tax benefits primarily due to the reversal of tax accruals no longer required|
|Effective tax rate on operations||36.2||%|
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