Altria's ProfileAltria's wholly-owned subsidiaries include Philip Morris USA Inc., U.S. Smokeless Tobacco Company LLC, John Middleton Co., Sherman Group Holdings, LLC and its subsidiaries, Nu Mark LLC, Ste. Michelle Wine Estates Ltd. (Ste. Michelle) and Philip Morris Capital Corporation. Altria holds an equity investment in Anheuser-Busch InBev SA/NV. The brand portfolios of Altria's tobacco operating companies include Marlboro ® , Black & Mild ® , Copenhagen ® , Skoal ® , MarkTen ® and Green Smoke ® . Ste. Michelle produces and markets premium wines sold under various labels, including Chateau Ste. Michelle ® , Columbia Crest ® , 14 Hands ® and Stag's Leap Wine Cellars ™ , and it imports and markets Antinori ® , Champagne Nicolas Feuillatte ™ , Torres ® and Villa Maria Estate ™ products in the United States. Trademarks and service marks related to Altria referenced in this release are the property of Altria or its subsidiaries or are used with permission. More information about Altria is available at altria.com and on the Altria Investor app. 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. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in today's remarks are described in Altria's publicly filed reports, including its Annual Report on Form 10-K for the year ended December 31, 2016 and its Quarterly Report on Form 10-Q for the period ended September 30, 2017.
These factors include the following: significant competition; changes in adult consumer preferences and demand for Altria's operating companies' products; fluctuations in raw material availability, quality and price; reliance on key facilities and suppliers; reliance on critical information systems, many of which are managed by third-party service providers; fluctuations in levels of customer inventories; the effects of global, national and local economic and market conditions; changes to income tax laws; federal, state and local legislative activity, including actual and potential federal and state excise tax increases; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases and concluded tobacco litigation settlements, consumption rates and consumer preferences within price segments; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; privately imposed smoking restrictions; and, from time to time, governmental investigations.Furthermore, the results of Altria's tobacco businesses are dependent upon their continued ability to promote brand equity successfully; to anticipate and respond to evolving adult consumer preferences; to develop, manufacture, market and distribute products that appeal to adult tobacco consumers (including, where appropriate, through arrangements with, and investments in, third parties); to improve productivity; and to protect or enhance margins through cost savings and price increases. Altria and its tobacco businesses are also subject to federal, state and local government regulation, including by the U.S. Food and Drug Administration. Altria and its subsidiaries continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, courts reaching conclusions at variance with the companies' understanding of applicable law, bonding requirements in the limited number of jurisdictions that do not limit the dollar amount of appeal bonds and certain challenges to bond cap statutes. In addition, the factors related to Altria's investment in AB InBev include the following: AB InBev's inability to successfully execute its business plans and strategies; that Altria's equity securities in AB InBev, which it received in AB InBev's business combination with SABMiller, are subject to restrictions on transfer until October 10, 2021; the risk that Altria's reported earnings from and carrying value of its equity investment in AB InBev may be adversely affected by unfavorable foreign currency exchange rates and other factors, including the risks encountered by AB InBev in its business; the risk that the tax treatment of Altria's transaction consideration from the AB InBev/SABMiller business combination and the accounting treatment of its equity investment are not guaranteed; and the risk that the tax treatment of the dividends Altria expects to receive from AB InBev may not be as favorable as Altria anticipates.
Altria 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 except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements referenced above.
|ALTRIA GROUP, INC. and Subsidiaries Reconciliation of GAAP and non-GAAP Measures (dollars in millions, except per share data) (Unaudited)|
|Reconciliation of Altria's Full-Year 2017 Adjusted Results|
|Earnings before Income Taxes||(Benefit) Provision for Income Taxes||Net Earnings||Net Earnings Attributable to Altria Group, Inc.||Diluted EPS|
|For the year ended December 31, 2017|
|NPM Adjustment Items||4||2||2||2||—|
|Tobacco and health litigation items||80||30||50||50||0.03|
|AB InBev special items||160||55||105||105||0.05|
|Asset impairment, exit, implementation and acquisition-related costs||89||34||55||55||0.03|
|Gain on AB InBev/SABMiller business combination||(445||)||(156||)||(289||)||(289||)||(0.15||)|
|Settlement charge for lump sum pension payments||81||32||49||49||0.03|
|Adjusted for Special Items||$||9,797||$||3,272||$||6,525||$||6,520||$||3.39|