UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(X) | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2004
OR
( ) | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________ to ___________
Commission file number 1-8940
Altria Group, Inc.
(Exact name of registrant as specified in its charter)
| Virginia (State or other jurisdiction of incorporation or organization) |
13-3260245 (I.R.S. Employer Identification No.) |
| 120 Park Avenue,
New York, New York (Address of principal executive offices) |
10017 (Zip Code) |
Registrant’s telephone number, including area code (917) 663-4000
_________________________________________________________________
Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes X No
At April 30, 2004, there were 2,050,802,670 shares outstanding of the registrant’s common stock, par value $0.33 1/3 per share.
ALTRIA GROUP, INC.
TABLE OF CONTENTS
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Page No. |
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PART I |
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FINANCIAL INFORMATION |
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Item 1. |
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Financial Statements (Unaudited) |
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Condensed Consolidated Balance Sheets at March 31, 2004 and December 31, 2003 |
3 – 4 |
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Condensed Consolidated Statements of Earnings for the Three Months Ended March 31, 2004 and 2003 |
5 |
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6 |
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Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2004 and 2003 |
7 – 8 |
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9 – 29 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
30 – 53 |
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Item 4. |
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54 |
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PART II |
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OTHER INFORMATION |
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Item 1. |
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55 |
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Item 2. |
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Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
55 |
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Item 4. |
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56 |
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Item 6. |
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57 |
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58 |
-2-
PART I – FINANCIAL INFORMATION
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Item 1. |
Financial Statements. |
Altria
Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)
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March
31, |
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December
31, |
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ASSETS |
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Consumer products |
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Cash and cash equivalents |
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$ |
3,204 |
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$ |
3,777 |
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Receivables (less allowances of $141 and $135) |
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5,592 |
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5,256 |
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Inventories: |
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Leaf tobacco |
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3,389 |
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3,591 |
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Other raw materials |
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2,148 |
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2,009 |
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Finished product |
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4,006 |
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3,940 |
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9,543 |
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9,540 |
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Other current assets |
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1,980 |
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2,809 |
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Total current assets |
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20,319 |
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21,382 |
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Property, plant and equipment, at cost |
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27,637 |
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27,233 |
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Less accumulated depreciation |
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11,628 |
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11,166 |
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16,009 |
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16,067 |
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Goodwill |
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28,277 |
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27,742 |
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Other intangible assets, net |
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11,402 |
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11,803 |
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Other assets |
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11,222 |
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10,641 |
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Total consumer products assets |
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87,229 |
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87,635 |
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Financial services |
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Finance assets, net |
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8,188 |
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8,393 |
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Other assets |
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148 |
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147 |
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Total financial services assets |
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8,336 |
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8,540 |
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TOTAL ASSETS |
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$ |
95,565 |
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$ |
96,175 |
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See notes to condensed consolidated financial statements.
Continued
-3-
Altria
Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share and per share data)
(Unaudited)
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March
31, |
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December
31, |
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LIABILITIES |
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Consumer products |
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Short-term borrowings |
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$ |
2,494 |
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$ |
1,715 |
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Current portion of long-term debt |
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1,528 |
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1,661 |
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Accounts payable |
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2,780 |
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3,198 |
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Accrued liabilities: |
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Marketing |
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2,445 |
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2,443 |
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Taxes, except income taxes |
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2,510 |
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2,325 |
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Employment costs |
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856 |
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1,363 |
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Settlement charges |
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1,265 |
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3,530 |
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Other |
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2,778 |
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2,455 |
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Income taxes |
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771 |
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1,316 |
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Dividends payable |
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1,396 |
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1,387 |
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Total current liabilities |
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18,823 |
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21,393 |
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Long-term debt |
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19,294 |
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18,953 |
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Deferred income taxes |
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7,224 |
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7,295 |
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Accrued postretirement health care costs |
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3,263 |
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3,216 |
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Minority interest |
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4,762 |
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4,760 |
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Other liabilities |
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7,162 |
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7,161 |
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Total consumer products liabilities |
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60,528 |
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62,778 |
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Financial services |
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Long-term debt |
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2,077 |
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2,210 |
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Deferred income taxes |
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5,785 |
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5,815 |
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Other liabilities |
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335 |
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295 |
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Total financial services liabilities |
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8,197 |
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8,320 |
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Total liabilities |
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68,725 |
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71,098 |
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Contingencies (Note 9) |
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STOCKHOLDERS’ EQUITY |
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Common stock, par value $0.33 1/3 per share (2,805,961,317 shares issued) |
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935 |
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935 |
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Additional paid-in capital |
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5,072 |
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4,813 |
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Earnings reinvested in the business |
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47,696 |
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47,008 |
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Accumulated other comprehensive losses (including currency translation of $1,166 and $1,578) |
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(1,711 |
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(2,125 |
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51,992 |
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50,631 |
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Less cost of repurchased stock (756,104,883 and 768,697,895 shares) |
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(25,152 |
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(25,554 |
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Total stockholders’ equity |
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26,840 |
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