| (a) |
These columns reflect the historical consolidated statement of earnings, excluding the results of discontinued operations related to Kraft Foods Inc., and the consolidated balance sheet of Altria, as appropriate. |
| (b) |
These columns reflect the removal of PMI’s consolidated statement of earnings from, and Altria’s related consolidating adjustments to, the Altria historical consolidated statement of earnings. |
| (c) |
This column reflects the removal of PMI’s consolidated balance sheet from, and Altria’s related consolidating adjustments to, the Altria historical consolidated balance sheet. |
| (d) |
Represents the adjustment to record the pro forma cash payment by Altria to PMI of $427 million as a result of the modifications to the existing stock awards that were described in the introduction to the pro forma condensed consolidated financial statements. This cash payment is reflected as a decrease to Altria’s stockholders’ equity in the Altria pro forma condensed consolidated balance sheet. |
| (e) |
Represents the adjustment to record the $900 million of special dividends paid by PMI in the first quarter of 2008 that were described in the introduction to the pro forma condensed consolidated financial statements. The dividend payment from PMI increases Altria’s pro forma cash and cash equivalents and Altria’s stockholders’ equity on the pro forma condensed consolidated balance sheet. |
| (f) |
Represents the adjustment to record the pro forma cash payment by Altria to PMI for tax contingencies of $97 million. This entry also reflects the recognition of a long-term receivable from PMI on the pro forma condensed consolidated balance sheet. The receivable arises from the Tax Sharing Agreement between Altria and PMI, whereby PMI will reimburse Altria for PMI’s portion of tax contingencies that existed prior to the spin-off that may be paid to the taxing authorities in the future. The Altria pro forma condensed consolidated balance sheet contains a corresponding liability to the taxing authorities for the period prior to the spin-off under consolidated tax return regulations. |
| (g) |
Represents the cash settlement of a $257 million receivable from Altria recorded by PMI in its historical balance sheet. |
| (h) |
Represents the adjustment to record the pro forma cash payment by Altria to PMI of $38 million to transfer certain benefit plan liabilities related to PMI employees that were described in the introduction to the pro forma condensed consolidated financial statements. The transfer of these benefit plan liabilities will reduce Altria’s pro forma liabilities by $98 million, partially offset by a reduction of the related deferred tax assets of $37 million and a reduction of the SFAS 158 adjustment to stockholders’ equity of $23 million. |
