Stock Analysis on Net
Stock Analysis on Net

Altria Group Inc. (NYSE:MO)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Altria Group Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 2,346 1,968 1,965 2,025 1,686
State and local 681 603 542 553 470
Outside United States 1 1 2 22 3
Current 3,028 2,572 2,509 2,600 2,159
Federal (133) (893) (1,190) (130) (78)
State and local (97) (54) 30 (34) (19)
Outside United States — — — — 2
Deferred (230) (947) (1,160) (164) (95)
Provision (benefit) for income taxes 2,798 1,625 1,349 2,436 2,064

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Altria Group Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Altria Group Inc. deferred increased from 2021 to 2022 and from 2022 to 2023.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Altria Group Inc. provision (benefit) for income taxes increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Altria Group Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State and local income taxes, net of federal tax benefit 4.20% 5.90% 11.80% 6.00% 46.50%
Tax basis in foreign investments 0.30% 0.10% 0.70% 0.30% 11.00%
Uncertain tax positions 0.10% 0.00% -0.70% 0.10% -5.20%
Investment in ABI -0.30% -0.30% -0.40% 0.10% -27.40%
Investment in JUUL 0.50% 4.10% 0.20% 7.80% 236.00%
Investment in Cronos 0.10% 0.40% 3.30% 0.30% -8.60%
Valuation allowance releases 0.00% -9.00% -0.40% -0.30% 0.00%
Other -0.30% -0.20% -0.20% 0.10% -3.80%
Effective tax rate 25.60% 22.00% 35.30% 35.40% 269.50%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Altria Group Inc. effective tax rate decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Altria Group Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Accrued postretirement and postemployment benefits 302 303 387 524 491
Settlement charges 644 729 835 888 833
Accrued pension costs — — — 148 131
JUUL related losses 2,028 3,001 2,652 2,642 2,047
Investment in Cronos 397 407 403 128 197
IQOS deferred gain 691 — — — —
Net operating losses and tax credit carryforwards 217 31 46 81 92
Other 125 — — — —
Deferred income tax assets, gross 4,404 4,471 4,323 4,411 3,791
Valuation allowances (2,256) (2,800) (3,097) (2,817) (2,324)
Deferred income tax assets, net 2,148 1,671 1,226 1,594 1,467
Property, plant and equipment (237) (233) (216) (273) (255)
Intangible assets (3,210) (2,849) (2,802) (2,806) (2,758)
Investment in ABI (1,391) (1,226) (1,695) (2,819) (3,115)
Finance assets, net — — (29) (117) (204)
Accrued pension costs (81) (70) (55) — —
Other — (115) (94) (12) (158)
Deferred income tax liabilities (4,919) (4,493) (4,891) (6,027) (6,490)
Net deferred income tax assets (liabilities) (2,771) (2,822) (3,665) (4,433) (5,023)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred income tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Altria Group Inc. deferred income tax assets, gross increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred income tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Altria Group Inc. deferred income tax assets, net increased from 2021 to 2022 and from 2022 to 2023.
Net deferred income tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Altria Group Inc. net deferred income tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Altria Group Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred income tax assets 28 75 27 99 60
Deferred income tax liabilities 2,799 2,897 3,692 4,532 5,083

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Altria Group Inc. deferred income tax assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Altria Group Inc. deferred income tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Altria Group Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 38,570 36,954 39,523 47,414 49,271
Less: Noncurrent deferred tax assets, net 28 75 27 99 60
Total assets (adjusted) 38,542 36,879 39,496 47,315 49,211
Adjustment to Total Liabilities
Total liabilities (as reported) 42,060 40,877 41,129 44,449 42,914
Less: Noncurrent deferred tax liabilities, net 2,799 2,897 3,692 4,532 5,083
Total liabilities (adjusted) 39,261 37,980 37,437 39,917 37,831
Adjustment to Stockholders’ Equity (deficit) Attributable To Altria
Stockholders’ equity (deficit) attributable to Altria (as reported) (3,540) (3,973) (1,606) 2,839 6,222
Less: Net deferred tax assets (liabilities) (2,771) (2,822) (3,665) (4,433) (5,023)
Stockholders’ equity (deficit) attributable to Altria (adjusted) (769) (1,151) 2,059 7,272 11,245
Adjustment to Net Earnings (losses) Attributable To Altria
Net earnings (losses) attributable to Altria (as reported) 8,130 5,764 2,475 4,467 (1,293)
Add: Deferred income tax expense (benefit) (230) (947) (1,160) (164) (95)
Net earnings (losses) attributable to Altria (adjusted) 7,900 4,817 1,315 4,303 (1,388)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Altria Group Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Altria Group Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 33.21% 22.97% 9.51% 17.08% -5.15%
Adjusted net profit margin 32.27% 19.19% 5.06% 16.45% -5.53%
Total Asset Turnover
Reported total asset turnover 0.63 0.68 0.66 0.55 0.51
Adjusted total asset turnover 0.64 0.68 0.66 0.55 0.51
Financial Leverage
Reported financial leverage — — — 16.70 7.92
Adjusted financial leverage — — 19.18 6.51 4.38
Return on Equity (ROE)
Reported ROE — — — 157.34% -20.78%
Adjusted ROE — — 63.87% 59.17% -12.34%
Return on Assets (ROA)
Reported ROA 21.08% 15.60% 6.26% 9.42% -2.62%
Adjusted ROA 20.50% 13.06% 3.33% 9.09% -2.82%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Altria Group Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Altria Group Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Altria Group Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Altria Group Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (losses) attributable to Altria 8,130 5,764 2,475 4,467 (1,293)
Net revenues 24,483 25,096 26,013 26,153 25,110
Profitability Ratio
Net profit margin1 33.21% 22.97% 9.51% 17.08% -5.15%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses) attributable to Altria 7,900 4,817 1,315 4,303 (1,388)
Net revenues 24,483 25,096 26,013 26,153 25,110
Profitability Ratio
Adjusted net profit margin2 32.27% 19.19% 5.06% 16.45% -5.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net earnings (losses) attributable to Altria ÷ Net revenues
= 100 × 8,130 ÷ 24,483 = 33.21%

2 Adjusted net profit margin = 100 × Adjusted net earnings (losses) attributable to Altria ÷ Net revenues
= 100 × 7,900 ÷ 24,483 = 32.27%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Altria Group Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net revenues 24,483 25,096 26,013 26,153 25,110
Total assets 38,570 36,954 39,523 47,414 49,271
Activity Ratio
Total asset turnover1 0.63 0.68 0.66 0.55 0.51
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues 24,483 25,096 26,013 26,153 25,110
Adjusted total assets 38,542 36,879 39,496 47,315 49,211
Activity Ratio
Adjusted total asset turnover2 0.64 0.68 0.66 0.55 0.51

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 24,483 ÷ 38,570 = 0.63

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 24,483 ÷ 38,542 = 0.64

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Altria Group Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 38,570 36,954 39,523 47,414 49,271
Stockholders’ equity (deficit) attributable to Altria (3,540) (3,973) (1,606) 2,839 6,222
Solvency Ratio
Financial leverage1 — — — 16.70 7.92
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 38,542 36,879 39,496 47,315 49,211
Adjusted stockholders’ equity (deficit) attributable to Altria (769) (1,151) 2,059 7,272 11,245
Solvency Ratio
Adjusted financial leverage2 — — 19.18 6.51 4.38

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity (deficit) attributable to Altria
= 38,570 ÷ -3,540 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit) attributable to Altria
= 38,542 ÷ -769 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (losses) attributable to Altria 8,130 5,764 2,475 4,467 (1,293)
Stockholders’ equity (deficit) attributable to Altria (3,540) (3,973) (1,606) 2,839 6,222
Profitability Ratio
ROE1 — — — 157.34% -20.78%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses) attributable to Altria 7,900 4,817 1,315 4,303 (1,388)
Adjusted stockholders’ equity (deficit) attributable to Altria (769) (1,151) 2,059 7,272 11,245
Profitability Ratio
Adjusted ROE2 — — 63.87% 59.17% -12.34%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net earnings (losses) attributable to Altria ÷ Stockholders’ equity (deficit) attributable to Altria
= 100 × 8,130 ÷ -3,540 = —

2 Adjusted ROE = 100 × Adjusted net earnings (losses) attributable to Altria ÷ Adjusted stockholders’ equity (deficit) attributable to Altria
= 100 × 7,900 ÷ -769 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (losses) attributable to Altria 8,130 5,764 2,475 4,467 (1,293)
Total assets 38,570 36,954 39,523 47,414 49,271
Profitability Ratio
ROA1 21.08% 15.60% 6.26% 9.42% -2.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses) attributable to Altria 7,900 4,817 1,315 4,303 (1,388)
Adjusted total assets 38,542 36,879 39,496 47,315 49,211
Profitability Ratio
Adjusted ROA2 20.50% 13.06% 3.33% 9.09% -2.82%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net earnings (losses) attributable to Altria ÷ Total assets
= 100 × 8,130 ÷ 38,570 = 21.08%

2 Adjusted ROA = 100 × Adjusted net earnings (losses) attributable to Altria ÷ Adjusted total assets
= 100 × 7,900 ÷ 38,542 = 20.50%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Altria Group Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.