Name: Altria Group Inc. (NYSE:MO) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Altria Group Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current portion of long-term debt	1,121)	1,556)	1,105)	1,500)	1,000)
Accounts payable	582)	552)	449)	380)	325)
Marketing	716)	599)	664)	523)	393)
Settlement charges	2,563)	2,925)	3,349)	3,564)	3,346)
Other	1,902)	1,299)	1,365)	1,494)	1,545)
Accrued liabilities	5,181)	4,823)	5,378)	5,581)	5,284)
Deferred gain from the sale of IQOS System commercialization rights	2,700)	—)	—)	—)	—)
Dividends payable	1,735)	1,685)	1,647)	1,602)	1,565)
Current liabilities	11,319)	8,616)	8,579)	9,063)	8,174)
Long-term debt, excluding current portion	25,112)	25,124)	26,939)	27,971)	27,042)
Deferred income taxes	2,799)	2,897)	3,692)	4,532)	5,083)
Accrued pension costs	130)	133)	200)	551)	473)
Accrued postretirement health care costs	1,079)	1,083)	1,436)	1,951)	1,797)
Deferred gain from the sale of IQOS System commercialization rights	—)	2,700)	—)	—)	—)
Other liabilities	1,621)	324)	283)	381)	345)
Non-current liabilities	30,741)	32,261)	32,550)	35,386)	34,740)
Total liabilities	42,060)	40,877)	41,129)	44,449)	42,914)
Redeemable noncontrolling interest	—)	—)	—)	40)	38)
Common stock, par value $0.33 1/3 per share	935)	935)	935)	935)	935)
Additional paid-in capital	5,906)	5,887)	5,857)	5,910)	5,970)
Earnings reinvested in the business	31,094)	29,792)	30,664)	34,679)	36,539)
Accumulated other comprehensive losses	(2,673)	(2,771)	(3,056)	(4,341)	(2,864)
Cost of repurchased stock	(38,802)	(37,816)	(36,006)	(34,344)	(34,358)
Stockholders’ equity (deficit) attributable to Altria	(3,540)	(3,973)	(1,606)	2,839)	6,222)
Noncontrolling interests	50)	50)	—)	86)	97)
Total stockholders’ equity (deficit)	(3,490)	(3,923)	(1,606)	2,925)	6,319)
Total liabilities and stockholders’ equity (deficit)	38,570)	36,954)	39,523)	47,414)	49,271)

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).

The financial structure of the organization has undergone a significant transformation between 2019 and 2023, characterized by a shift toward a negative stockholders' equity position and a reallocation of liabilities from long-term to short-term obligations.

Liability Trends and Composition: Total liabilities remained relatively stable over the five-year period, moving from 42,914 million USD in 2019 to 42,060 million USD in 2023. However, a notable shift occurred in the composition of these liabilities. Current liabilities increased from 8,174 million USD to 11,319 million USD, largely driven by a 2,700 million USD deferred gain from the sale of IQOS System commercialization rights recognized in 2023. Conversely, non-current liabilities declined from 34,740 million USD to 30,741 million USD.; Long-term debt, excluding the current portion, showed a general downward trajectory, decreasing from 27,042 million USD in 2019 to 25,112 million USD in 2023. This reduction is complemented by a substantial decrease in deferred income taxes, which fell from 5,083 million USD to 2,799 million USD, and a reduction in accrued pension and postretirement health care costs.
Stockholders' Equity and Capital Structure: The most prominent trend is the erosion of stockholders' equity, which transitioned from a positive 6,319 million USD in 2019 to a deficit of 3,490 million USD by 2023. The equity deficit first materialized in 2021 and has persisted through 2023.; This deficit is primarily attributable to aggressive share repurchase activity. The cost of repurchased stock increased from a negative 34,358 million USD in 2019 to a negative 38,802 million USD in 2023. This trend occurred alongside a decrease in earnings reinvested in the business, which fell from 36,539 million USD to 31,094 million USD over the same period.
Working Capital and Other Obligations: Accounts payable and marketing obligations have both trended upward, with accounts payable rising from 325 million USD to 582 million USD. Settlement charges, while remaining a significant liability, showed a steady decline from 3,346 million USD in 2019 to 2,563 million USD in 2023. Dividends payable remained relatively stable, showing a marginal increase from 1,565 million USD to 1,735 million USD, indicating consistent dividend commitments despite the negative equity position.

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