2013 Reporting SegmentsEffective January 1, 2013, Altria's reportable segments will be Smokeable Products, Smokeless Products and Wine. In connection with this revision, results of the financial services business and the alternative products business will be combined in an All Other category. Altria is making these changes due to the continued reduction of the lease portfolio of Philip Morris Capital Corporation (PMCC) and the relative financial contribution of Altria's alternative products business to its consolidated results. Altria will begin reporting the All Other category and presenting comparable results for prior periods with its 2013 first-quarter results. New Retail Tracking Service Altria's tobacco companies are transitioning to new retail tracking services to measure cigarette, cigar and smokeless products performance beginning in the first quarter of 2013. ALTRIA GROUP, INC. Altria reports its financial results, including diluted EPS, in accordance with U.S. generally accepted accounting principles (GAAP). Altria's management reviews operating companies income (OCI), which is defined as operating income before corporate expenses and amortization of intangibles, to evaluate segment performance and allocate resources. Altria's management also reviews OCI, operating margins and EPS on an adjusted basis, which excludes certain income and expense items that management believes are not part of underlying operations. These items include loss on early extinguishment of debt, restructuring charges, SABMiller special items, certain PMCC leveraged lease items, certain tax items, and tobacco and health judgments. Altria's management does not view any of these special items to be part of Altria's sustainable results as they may be highly variable and difficult to predict and can distort underlying business trends and results. Altria's management also reviews income tax rates on an adjusted basis. Altria's effective tax rate on operations may exclude certain tax items from its reported effective tax rate. Altria's management believes that adjusted measures for OCI, operating margins and EPS, as well as the effective tax rate on operations, provide useful insight into underlying business trends and results and provide a more meaningful comparison of year-over-year results. Altria's management uses adjusted measures internally for planning, forecasting and evaluating the performance of Altria's businesses, including allocating resources and evaluating results relative to employee compensation targets. These adjusted financial measures are not consistent with GAAP, and should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. Reconciliations of adjusted measures to corresponding GAAP measures are provided in the release. Comparisons are to the same prior-year period unless otherwise stated. Altria's 2012 reportable segments are Smokeable Products, manufactured and sold by PM USA and John Middleton Co. (Middleton); Smokeless Products, manufactured and sold by or on behalf of U.S. Smokeless Tobacco Company LLC (USSTC) and PM USA; Wine, produced and/or distributed by Ste. Michelle Wine Estates Ltd. (Ste. Michelle); and Financial Services, provided by PMCC. Prior-period segment data have been recast to conform with the current-period segment presentation. Altria's net revenues increased 1.8% to $6.2 billion for the fourth quarter of 2012 primarily due to higher net revenues from smokeable products, partially offset by lower revenues from financial services. For the full year of 2012, Altria's net revenues increased 3.4% to $24.6 billion primarily due to higher net revenues from financial services and smokeable products. Altria's revenues net of excise taxes increased 2.6% to $4.5 billion for the fourth quarter of 2012, and grew 5.3% to $17.5 billion for the full year of 2012. Comparisons of Altria's full-year net revenues and revenues net of excise taxes were impacted by a 2011 charge related to certain PMCC leveraged lease transactions.