Name: Altria Group Inc. (NYSE:MO) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Altria Group Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net earnings (losses)	8,130)	5,764)	2,475)	4,454)	(1,298)
Depreciation and amortization	272)	226)	244)	257)	226)
Deferred income tax benefit	(230)	(947)	(1,160)	(164)	(95)
Unrecognized tax benefit	1,111)	16)	(21)	—)	—)
(Income) losses from investments in equity securities	(243)	3,641)	5,979)	111)	(1,725)
Dividends from ABI	163)	104)	119)	108)	396)
Loss on Cronos-related financial instruments	—)	15)	148)	140)	1,442)
Impairment of JUUL equity securities	—)	—)	—)	2,600)	8,600)
Loss on early extinguishment of debt	—)	—)	649)	—)	—)
Receivables	6)	(21)	(18)	20)	(8)
Inventories	(15)	14)	57)	2)	42)
Accounts payable	38)	92)	163)	53)	(79)
Income taxes	6)	(118)	(149)	(29)	89)
Accrued liabilities and other current assets	280)	(129)	165)	(15)	11)
Accrued settlement charges	(362)	(424)	(215)	218)	(108)
Cash effects of changes in operating capital	(47)	(586)	3)	249)	(53)
Pension plan contributions	(20)	(20)	(26)	(33)	(56)
Pension and postretirement, net	(136)	(156)	(175)	(49)	(52)
Other, net	287)	199)	170)	712)	452)
Adjustments to reconcile net earnings (losses) to operating cash flows	1,157)	2,492)	5,930)	3,931)	9,135)
Net cash provided by operating activities	9,287)	8,256)	8,405)	8,385)	7,837)
Capital expenditures	(196)	(205)	(169)	(231)	(246)
Proceeds from the sale of IQOS System commercialization rights	1,700)	1,000)	—)	—)	—)
Acquisitions of businesses and assets	—)	—)	—)	—)	(421)
Investment in Cronos	—)	—)	—)	—)	(1,899)
Proceeds from the Ste. Michelle Transaction, net of cash transferred	—)	—)	1,176)	—)	—)
Acquisition of NJOY, net of cash acquired	(2,751)	—)	—)	—)	—)
Other, net	(36)	(13)	205)	88)	168)
Net cash (used in) provided by investing activities	(1,283)	782)	1,212)	(143)	(2,398)
Proceeds from short-term borrowings	2,000)	—)	—)	3,000)	—)
Repayment of short-term borrowings	(2,000)	—)	—)	(3,000)	(12,800)
Long-term debt issued	998)	—)	5,472)	1,993)	16,265)
Long-term debt repaid	(1,566)	(1,105)	(6,542)	(1,000)	(1,144)
Repurchases of common stock	(1,000)	(1,825)	(1,675)	—)	(845)
Dividends paid on common stock	(6,779)	(6,599)	(6,446)	(6,290)	(6,069)
Premiums and fees related to early extinguishment of debt	—)	—)	(623)	—)	—)
Other, net	(27)	(12)	(215)	(99)	(119)
Net cash used in financing activities	(8,374)	(9,541)	(10,029)	(5,396)	(4,712)
Cash, cash equivalents and restricted cash, increase (decrease)	(370)	(503)	(412)	2,846)	727)
Cash, cash equivalents and restricted cash, balance at beginning of year	4,091)	4,594)	5,006)	2,160)	1,433)
Cash, cash equivalents and restricted cash, balance at end of year	3,721)	4,091)	4,594)	5,006)	2,160)

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 trajectory from 2019 to 2023 is characterized by a stark divergence between reported net earnings and actual cash generation from operations. While net earnings exhibited extreme volatility, swinging from a loss of $1,298 million in 2019 to a peak of $8,130 million in 2023, the net cash provided by operating activities remained remarkably stable, consistently ranging between $7,837 million and $9,287 million. This suggests that the core business generates a steady stream of liquidity regardless of non-cash accounting charges.

Operating Cash Flow Drivers: The volatility in net earnings was primarily driven by massive non-cash adjustments. A significant impairment of JUUL equity securities totaling $8,600 million in 2019 and $2,600 million in 2020 heavily suppressed reported earnings but did not impact cash liquidity. Conversely, operating cash flow peaked in 2023 at $9,287 million, supported by rising net earnings and positive adjustments in accrued liabilities.
Investing Activities and Strategic Shifts: Investing cash flows reflect a transition from aggressive equity investments to targeted acquisitions and strategic divestments. Significant outflows were noted for the investment in Cronos in 2019 ($1,899 million) and the acquisition of NJOY in 2023 ($2,751 million). These were partially offset by inflows from the sale of IQOS System commercialization rights, which provided $1,000 million in 2022 and $1,700 million in 2023. Capital expenditures remained consistently low and stable, averaging approximately $215 million per year.
Financing and Shareholder Returns: Financing activities show a consistent and heavy commitment to shareholder distributions. Dividends paid on common stock increased every year, rising from $6,069 million in 2019 to $6,779 million in 2023. The company also engaged in intermittent share repurchases, with the highest expenditure occurring in 2022 at $1,825 million. To support these outflows and manage obligations, the company utilized significant long-term debt issuances, most notably $16,265 million in 2019 and $5,472 million in 2021.
Liquidity and Cash Position: The balance of cash, cash equivalents, and restricted cash peaked in 2020 at $5,006 million. Following this peak, a downward trend is observed, with the balance decreasing to $3,721 million by the end of 2023. This decline coincides with the period of sustained high dividend payments and the acquisition of NJOY, despite the strong operating cash inflows.

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