Altria Group Inc. (MO)

Statement of Cash Flows

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s statement of financial position.

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.

Altria Group Inc., Consolidated Statement of Cash Flows

USD $ in millions

12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net earnings	6,967	10,227	14,244	5,243	5,070
Depreciation and amortization	227	209	204	225	208
Deferred income tax provision (benefit)	(57)	(3,126)	3,119	(132)	(129)
Earnings from equity investment in AB InBev/SABMiller	(890)	(532)	(795)	(757)	(1,006)
(Gain) loss on AB InBev/SABMiller business combination	33	(445)	(13,865)	(5)	—
Dividends from AB InBev/SABMiller	657	806	739	495	456
Asset impairment and exit costs, net of cash paid	354	(38)	106	1	(9)
Loss on early extinguishment of debt	—	—	823	228	44
Receivables	—	10	(27)	3	(8)
Inventories	(129)	(171)	(34)	(33)	(184)
Accounts payable	27	(55)	(6)	(7)	(5)
Income taxes	218	(294)	(231)	(12)	1
Accrued liabilities and other current assets	(21)	(85)	(113)	184	(107)
Accrued settlement charges	980	(1,259)	111	90	109
Cash effects of changes in operating capital	1,075	(1,854)	(300)	225	(194)
Pension and postretirement plans contributions	(41)	(294)	(531)	(28)	(15)
Pension provisions and postretirement, net	(13)	(11)	(73)	114	21
Other, net	79	(20)	120	201	217
Adjustments to reconcile net earnings to operating cash flows	1,424	(5,305)	(10,453)	567	(407)
Net cash provided by operating activities	8,391	4,922	3,791	5,810	4,663
Capital expenditures	(238)	(199)	(189)	(229)	(163)
Acquisitions of businesses and assets	(15)	(415)	(45)	—	(102)
Investment in JUUL	(12,800)	—	—	—	—
Proceeds from finance assets	37	133	231	354	369
Proceeds from AB InBev/SABMiller business combination	—	—	4,773	—	—
Purchase of AB InBev ordinary shares	—	—	(1,578)	—	—
Proceeds from derivative financial instruments	35	—	510	—	—
Other, net	(7)	14	6	(140)	73
Net cash (used in) provided by investing activities	(12,988)	(467)	3,708	(15)	177
Proceeds from short-term borrowings	12,800	—	—	—	—
Long-term debt issued	—	—	1,976	—	999
Long-term debt repaid	(864)	—	(933)	(1,793)	(825)
Repurchases of common stock	(1,673)	(2,917)	(1,030)	(554)	(939)
Dividends paid on common stock	(5,415)	(4,807)	(4,512)	(4,179)	(3,892)
Premiums and fees related to early extinguishment of debt	—	—	(809)	(226)	(44)
Other, net	(132)	(47)	9	5	7
Net cash provided by (used in) financing activities	4,716	(7,771)	(5,299)	(6,747)	(4,694)
Cash, cash equivalents and restricted cash, increase (decrease)	119	(3,316)	2,200	(952)	146
Cash, cash equivalents and restricted cash, balance at beginning of year	1,314	4,569	2,369	3,321	3,175
Cash, cash equivalents and restricted cash, balance at end of year	1,433	1,253	4,569	2,369	3,321

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

Item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Altria Group Inc.’s net cash provided by operating activities increased from 2016 to 2017 and from 2017 to 2018.
Net cash (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Altria Group Inc.’s net cash (used in) provided by investing activities declined from 2016 to 2017 and from 2017 to 2018.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Altria Group Inc.’s net cash provided by (used in) financing activities declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.