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Altria Group, Inc., is the largest publicly traded, Fortune 200 tobacco company operating in the United States, and is based in Richmond, Virginia. <ref> Sandler O’Neill & Partners, [http://www.sandleroneill.com/Collateral/Documents/English-US/Altria-Middleton%20Announcement%2011-01-2007.pdf Altria Group Agrees to Acquire John Middleton, Inc. for $2.9 Billion], 1 November 2007, Accessed January 2019 </ref> Altria only sells its tobacco products in the United States, though it has purchased shares in companies that sell products in other countries. <ref name="ALT_SUB"> Altria website, [http://www.altria.com/About-altria/our-companies/at-a-glance/Pages/default.aspx Our Companies], Accessed 28 December 2018 </ref>
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Altria Group, Inc., is the largest publicly traded, Fortune 200 tobacco company operating in the United States, and is based in Richmond, Virginia. <ref> Sandler O’Neill & Partners, [http://www.sandleroneill.com/Collateral/Documents/English-US/Altria-Middleton%20Announcement%2011-01-2007.pdf Altria Group Agrees to Acquire John Middleton, Inc. for $2.9 Billion], November 1, 2007, Accessed January 2019 </ref> Altria only sells its tobacco products in the United States, though it has purchased shares in companies that sell products in other countries. <ref name="ALT_SUB"> Altria website, [http://www.altria.com/About-altria/our-companies/at-a-glance/Pages/default.aspx Our Companies], Accessed December 28, 2018 </ref>
  
 
==Company Overview==
 
==Company Overview==
  
Philip Morris Companies, Inc. changed its name to Altria in 2003. Altria has several subsidiaries and spun off [[Philip Morris International]] in March 2008. [[Philip Morris International]] and Altria are now legally separate companies. Altria also has shares in alcohol companies. <ref name="ALT_SUB"/>
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Philip Morris Companies, Inc. changed its name to Altria in 2003. Altria has several subsidiaries and spun off [[Philip Morris International]] in March 2008. Philip Morris International and Altria are now legally separate companies. Altria also has shares in alcohol companies. <ref name="ALT_SUB"/>
  
 
===Key Executives===
 
===Key Executives===
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A graduate of Marquette University, K.C. earned his MBA from Providence College. K.C. currently serves on the Board of Directors for UNCF and the National Association of Manufacturers​. <ref name="ALT_BOARD"/>  
 
A graduate of Marquette University, K.C. earned his MBA from Providence College. K.C. currently serves on the Board of Directors for UNCF and the National Association of Manufacturers​. <ref name="ALT_BOARD"/>  
 
|-
 
|-
|Murray Garnick
 
 
|Executive Vice President and General Counsel, Altria Group (since 2017)
 
|Executive Vice President and General Counsel, Altria Group (since 2017)
 
|Murray Garnick serves as Executive Vice President and General Counsel for Altria Group. In his role, he leads the company's Law department and the Corporate Secretary's office, Regulatory Affairs and Regulatory Sciences. He has held this position since 2017.
 
|Murray Garnick serves as Executive Vice President and General Counsel for Altria Group. In his role, he leads the company's Law department and the Corporate Secretary's office, Regulatory Affairs and Regulatory Sciences. He has held this position since 2017.
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|-
 
|-
 
|Michael Thorne-Begland
 
|Michael Thorne-Begland
|Vice President & Chief Transformation Officer for Client Services
 
 
|Michael Thorne-Begland is Vice President & Chief Transformation Officer for Altria Client Services, which provides professional services and support to Altria Group and its operating companies. In his role, Michael helps drive and facilitate the cultural and business change necessary to win in the future.​
 
|Michael Thorne-Begland is Vice President & Chief Transformation Officer for Altria Client Services, which provides professional services and support to Altria Group and its operating companies. In his role, Michael helps drive and facilitate the cultural and business change necessary to win in the future.​
 
   
 
   
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| John T. Casteen III
 
| John T. Casteen III
 
| Director since 2010
 
| Director since 2010
| Mr. Casteen became President Emeritus of the University of Virginia in August 2010 after having served as President of the University since 1990. He is both University Professor and Professor of English. Previously, Mr. Casteen served as Secretary of Education for the Commonwealth of Virginia from 1982 to 1985 and President of the University of Connecticut from 1985 to 1990. He is a director of Strayer Education, Inc. He also serves as a director of the Chesapeake Bay Foundation, the Jamestown-Yorktown Foundation, the Virginia Foundation for Community College Education, the Woodrow Wilson International Center for Scholars, the Leifur Eiríksson Foundation and several privately-held companies. Mr. Casteen is a member of the Audit, Compensation and Innovation Committees. <ref name="ALT_BOARD2">Altria Website, [http://www.altria.com/About-Altria/Board-of-Directors-and-Committees/Board-of-Directors/Pages/default.aspx Board Of Directors], Accessed 28 December 28 2018 </ref>  
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| Mr. Casteen became President Emeritus of the University of Virginia in August 2010 after having served as President of the University since 1990. He is both University Professor and Professor of English. Previously, Mr. Casteen served as Secretary of Education for the Commonwealth of Virginia from 1982 to 1985 and President of the University of Connecticut from 1985 to 1990. He is a director of Strayer Education, Inc. He also serves as a director of the Chesapeake Bay Foundation, the Jamestown-Yorktown Foundation, the Virginia Foundation for Community College Education, the Woodrow Wilson International Center for Scholars, the Leifur Eiríksson Foundation and several privately-held companies. Mr. Casteen is a member of the Audit, Compensation and Innovation Committees. <ref name=”ALT_BOARD2”>Altria Website, [http://www.altria.com/About-Altria/Board-of-Directors-and-Committees/Board-of-Directors/Pages/default.aspx Board Of Directors], Accessed December 28, 2018. </ref>  
 
|-
 
|-
 
| Dinyar S. Devitre
 
| Dinyar S. Devitre
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===2018 Forecast===
 
===2018 Forecast===
 
 
==Profitability==
 
==Profitability==
 
===Annual Trends===
 
===Annual Trends===
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| Altria
 
| Altria
 
| November 2007
 
| November 2007
| 2.9 billion <ref> Sandler O’Neill & Partners, [http://www.sandleroneill.com/Collateral/Documents/English-US/Altria-Middleton%20Announcement%2011-01-2007.pdf Altria Group Agrees to Acquire John Middleton, Inc. for $2.9 Billion], 1 November 2007, Accessed January 2019 </ref>
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| 2.9 billion <ref> Sandler O’Neill & Partners, [http://www.sandleroneill.com/Collateral/Documents/English-US/Altria-Middleton%20Announcement%2011-01-2007.pdf Altria Group Agrees to Acquire John Middleton, Inc. for $2.9 Billion], November 1, 2007, Accessed January 2019 </ref>
 
|-
 
|-
 
| U.S. Smokeless Tobacco Company
 
| U.S. Smokeless Tobacco Company
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| Altria
 
| Altria
 
| September 2008
 
| September 2008
| 11.7 billion <ref>[https://www.ft.com/content/e6f588cc-7d9e-11dd-bdbd-000077b07658 Altria buys UST for $11.7bn], ''Financial Times'', 8 September 2008, Accessed January 2019 </ref>
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| 11.7 billion <ref>[https://www.ft.com/content/e6f588cc-7d9e-11dd-bdbd-000077b07658 Altria buys UST for $11.7bn], ''Financial Times '', September 8, 2008, Accessed January 2019 </ref>
 
|-
 
|-
 
| Nat Sherman
 
| Nat Sherman
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| Altria
 
| Altria
 
| January 2017
 
| January 2017
| NA <ref>Altria website, [http://investor.altria.com/file/Index?KeyFile=394250144 Altria Announces Acquisition of Sherman Group Holdings, LLC Press release ], 17 January 2017, Accessed January 2019 </ref>  
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| NA <ref>Altria website, [http://investor.altria.com/file/Index?KeyFile=394250144 Altria Announces Acquisition of Sherman Group Holdings, LLC Press release ], January 17, 2017, Accessed January 2019 </ref>  
 
|-
 
|-
 
| Green Smoke
 
| Green Smoke
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| April 2014
 
| April 2014
 
| 110 million cash
 
| 110 million cash
20 million incentive payments <ref>[https://www.businesswire.com/news/home/20140401006617/en/Altria-Completes-Acquisition-Green-Smoke Altria Completes Acquisition of Green Smoke ], ''Business Wire'', 1 April 2014, Accessed January 2019 </ref>  
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20 million incentive payments <ref>[https://www.businesswire.com/news/home/20140401006617/en/Altria-Completes-Acquisition-Green-Smoke Altria Completes Acquisition of Green Smoke ], '' Business Wire', April 1, 2014, Accessed January 2019 </ref>  
 
|}
 
|}
 +
  
 
===Investments===
 
===Investments===
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| JUUL
 
| JUUL
 
| December 2018
 
| December 2018
| 12.8 billion <ref name=”ALT_INVST”>Altria website, [http://investor.altria.com/file/Index?KeyFile=396169695 Altria Makes $12.8 Billion Minority Investment in JUUL to Accelerate Harm Reduction and Drive Growth  Press Release], 20 December 2018, Accessed January 2019 </ref>
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| 12.8 billion <ref mane=”ALT_INVST”>Altria website, [http://investor.altria.com/file/Index?KeyFile=396169695 Altria Makes $12.8 Billion Minority Investment in JUUL to Accelerate Harm Reduction and Drive Growth  Press Release], December 20, 2018, Accessed January 2019 </ref>
 
|-
 
|-
 
| Cronos
 
| Cronos
 
| December 2018
 
| December 2018
| 1.8 billion  <ref>Altria website, [http://investor.altria.com/file/Index?KeyFile=396027308 Altria to Make Growth Investment in Cronos Group Press Release], 7 December 2018, Accessed January 2019 </ref>
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| 1.8 billion  <ref>Altria website, [http://investor.altria.com/file/Index?KeyFile=396027308 Altria to Make Growth Investment in Cronos Group Press Release], December 7, 2018, Accessed January 2019 </ref>
 
|}
 
|}
 +
  
 
===Market Share===
 
===Market Share===
According to Altria’s 2017 Annual Report filed with the SEC, Altria’s cigarette brands made up 50.7% share of the United States cigarette market, down from 51.1% in 2016. Altria’s smokeless tobacco products made up 53.7% of the total United States smokeless tobacco product market, down from 54.7% in 2016.<ref name="ALT_TABLE"> Altria Group, Inc., [https://www.sec.gov/Archives/edgar/data/764180/000076418018000028/a2017form10-kq4.htm 2017 Annual Report Form 10-K], 27 February 2018, pp. 31-32, Accessed January 2019 </ref>
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According to Altria’s 2017 Annual Report filed with the SEC, Altria’s cigarette brands made up 50.7% share of the United States cigarette market, down from 51.1% in 2016. Altria’s smokeless tobacco products made up 53.7% of the total United States smokeless tobacco product market, down from 54.7% in 2016.<ref name=”ALT_TABLE”> Altria Group, Inc., [https://www.sec.gov/Archives/edgar/data/764180/000076418018000028/a2017form10-kq4.htm 2017 Annual Report Form 10-K, February 27, 2018, Pages 31-32, Accessed January 2019 </ref>
 
===Emerging Markets===
 
===Emerging Markets===
 
===Factory Openings and Closures===
 
===Factory Openings and Closures===
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|-
 
|-
 
| Marlboro Cigarettes
 
| Marlboro Cigarettes
| In 2017, Marlboro cigarettes made up 43.3% of the U.S. cigarette market. <ref name="ALT_TABLE"/>
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| In 2017, Marlboro cigarettes made up 43.3% of the U.S. cigarette market. <ref name=”ALT_TABLE”/>
 
|-
 
|-
 
| Other Premium Cigarette Brands: Virginia Slims, Parliament, Benson & Hedges
 
| Other Premium Cigarette Brands: Virginia Slims, Parliament, Benson & Hedges
| In 2017, Altria’s other premium brands made up 2.7% of the total U.S. cigarette market, down from 2.8% in 2016. <ref name="ALT_TABLE"/>
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| In 2017, Altria’s other premium brands made up 2.7% of the total U.S. cigarette market, down from 2.8% in 2016. <ref name=”ALT_TABLE”/>
  
 
|-
 
|-
 
| Discount Cigarette Brands:L&M, Basic, others
 
| Discount Cigarette Brands:L&M, Basic, others
| In 2017, Altria’s discount brands made up 4.7% of the total U.S. cigarette market, up from 4.6% in 2016. <ref name="ALT_TABLE"/>  
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| In 2017, Altria’s discount brands made up 4.7% of the total U.S. cigarette market, up from 4.6% in 2016. <ref name=”ALT_TABLE”/>  
 
|-
 
|-
 
| Black & Mild Cigars
 
| Black & Mild Cigars
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|-
 
|-
 
| E-Cigarettes
 
| E-Cigarettes
| Altria had developed its own line of e-cigarette products under the brand name MarkTen, and also sold e-cigarettes manufactured by its subsidiary, Green Smoke.,However, in December 2018, Altria announced that it would stop marketing all of its e-cigarettes <ref>Altria website, [http://investor.altria.com/file/Index?KeyFile=396027556 Altria Refocuses Innovative Product Efforts Press statement ], 7 December 2018 , Accessed January 2019 </ref>  and purchased 35% stake in the popular e-cigarette company, JUUL. <ref name="ALT_TABLE"/>  
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| Altria had developed its own line of e-cigarette products under the brand name MarkTen, and also sold e-cigarettes manufactured by its subsidiary, Green Smoke.,However, in December 2018, Altria announced that it would stop marketing all of its e-cigarettes <ref>Altria website, [http://investor.altria.com/file/Index?KeyFile=396027556 Altria Refocuses Innovative Product Efforts Press statement ], December 7, 2018 , Accessed January 2019 </ref>  and purchased 35% stake in the popular e-cigarette company, JUUL. <ref name=”ALT_TABLE”/>  
 
|-
 
|-
 
| Premium Cigarettes and Cigars
 
| Premium Cigarettes and Cigars
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===Heated Tobacco Products===
 
===Heated Tobacco Products===
Altria has entered into a deal with [[Philip Morris International]] to market the IQOS system in the U.S. if the product receives a pre-market authorization order from the FDA.<ref>Altria website, [http://investor.altria.com/Cache/1001246289.PDF?O=PDF&T=&Y=&D=&FID=1001246289&iid=4087349 Altria’s Statement on Philip Morris International’s Premarket Tobacco Product Application Submission to the FDA Press statement ], 31 March 2017, Accessed January 2019 </ref>
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Altria has entered into a deal with Philip Morris International to market the IQOS system in the U.S. if the product receives a pre-market authorization order from the FDA.<ref>Altria website, [http://investor.altria.com/Cache/1001246289.PDF?O=PDF&T=&Y=&D=&FID=1001246289&iid=4087349 Altria’s Statement on Philip Morris International’s Premarket Tobacco Product Application Submission to the FDA Press statement ], March 31, 2017, Accessed January 2019 </ref>
 
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=== Shipment Volumes===
 
=== Shipment Volumes===
 
====Combustible tobacco products====
 
====Combustible tobacco products====
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! style="font-weight:bold;" | Shipment Volume
 
! style="font-weight:bold;" | Shipment Volume
 
For the Year Ended December 31(sticks in millions)
 
For the Year Ended December 31(sticks in millions)
! style="font-weight:bold;" | 2017 <ref name="ALT_TABLE"/>
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! style="font-weight:bold;" | 2017 <ref name=”ALT_TABLE”/>
! style="font-weight:bold;" | 2016 <ref name="ALT_TABLE"/>
+
! style="font-weight:bold;" | 2016 <ref name=”ALT_TABLE”/>
! style="font-weight:bold;" | 2015 <ref name="ALT_TABLE"/>
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! style="font-weight:bold;" | 2015<ref name=”ALT_TABLE”/>
 
|-
 
|-
 
| style="font-weight:bold;" | Cigarettes
 
| style="font-weight:bold;" | Cigarettes
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| 127,343
 
| 127,343
 
|}
 
|}
 
 
====Smokeless tobacco products====
 
====Smokeless tobacco products====
 
{| class="wikitable"
 
{| class="wikitable"
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===Global Campaigns===
 
===Global Campaigns===
 
===Corporate Social Responsibility===
 
===Corporate Social Responsibility===
Altria reports four areas of corporate responsibility:  harm reduction, supply chain responsibility, marketing responsibly, and “our employees.” <ref> Altria website, [http://www.altria.com/Responsibility/At-A-Glance/Pages/default.aspx Where We’re Focused], Accessed 28 December 2018 </ref>
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Altria reports four areas of corporate responsibility:  harm reduction, supply chain responsibility, marketing responsibly, and “our employees.” <ref> Altria website, [http://www.altria.com/Responsibility/At-A-Glance/Pages/default.aspx Where We’re Focused], Accessed December 28, 2018 </ref>
 
   
 
   
 
Altria publishes its annual list of charitable giving recipients [ http://www.altria.com/Responsibility/Investing-In-Communities/Documents/GranteesList.pdf here].
 
Altria publishes its annual list of charitable giving recipients [ http://www.altria.com/Responsibility/Investing-In-Communities/Documents/GranteesList.pdf here].
 
   
 
   
 
===Lobbying===
 
===Lobbying===
On the federal level, Altria spends millions of dollars each year to lobby and influence members of the U.S. Congress. According to the figures compiled by the Center for Responsive Politics, Altria spent more than USD 7 million on federal lobbying in 2018 (through the third quarter of the year).<ref name="ALT_CFRPL2"> Center for Responsive Politics, [https://www.opensecrets.org/lobby/clientsum.php?id=D000000067&year=2018 Top Spenders],  Accessed January 2019 </ref>
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On the federal level, Altria spends millions of dollars each year to lobby and influence members of the U.S. Congress. According to the figures compiled by the Center for Responsive Politics, Altria spent more than USD 7 million on federal lobbying in 2018 (through the third quarter of the year).<ref name=”ALT_CFRPL2”> Center for Responsive Politics, [https://www.opensecrets.org/lobby/clientsum.php?id=D000000067&year=2018 Top Spenders],  Accessed January 2019 </ref>
 
Altria spent more than USD 194 million since 1998 on professional lobbying firms and in-house lobbyists, making the company among the top 20 overall spenders on federal lobbying. {{r|ALT_CFRPL2}} These figures reflect lobbying expenditures reported to the Secretary of the Senate and the Clerk of the House.   
 
Altria spent more than USD 194 million since 1998 on professional lobbying firms and in-house lobbyists, making the company among the top 20 overall spenders on federal lobbying. {{r|ALT_CFRPL2}} These figures reflect lobbying expenditures reported to the Secretary of the Senate and the Clerk of the House.   
 
   
 
   
 
At the state level, Altria was one of two dozen companies with registered lobbyists in every state between 2010 and 2014. <ref> Kusnetz, N, [https://www.publicintegrity.org/2016/03/25/19468/how-big-tobacco-lobbies-safeguard-e-cigarettes How Big Tobacco Lobbies to Safeguard E-cigarettes],  ''Public Integrity '', 25 March 2016, Accessed January 2019 </ref>
 
At the state level, Altria was one of two dozen companies with registered lobbyists in every state between 2010 and 2014. <ref> Kusnetz, N, [https://www.publicintegrity.org/2016/03/25/19468/how-big-tobacco-lobbies-safeguard-e-cigarettes How Big Tobacco Lobbies to Safeguard E-cigarettes],  ''Public Integrity '', 25 March 2016, Accessed January 2019 </ref>
 
   
 
   
Lobbying spending at the state level is difficult to track. However, news reports have shown that Altria actively contributes at the state and local level. For instance, in 2011, Altria spent more than USD 165,000 lobbying in Idaho, 82% higher than any other company or group that year.<ref name=”ALT_AP”>[http://www.washingtontimes.com/news/2017/may/19/how-big-tobacco-stopped-a-smoking-tax-in-marlboro-/ How Big Tobacco Stopped a Smoking Tax in Marlboro Country (aka Montana)], ''Associated Press '', May 19, 2017, Accessed January 2019 </ref>  In 2017, Altria spent USD 120,000 to lobby in Montana, which exceeded all lobby spending in the first three months. <ref name=”ALT_AP”/>
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Lobbying spending at the state level is difficult to track. However, news reports have shown that Altria actively contributes at the state and local level. For instance, in 2011, Altria spent more than USD 165,000 lobbying in Idaho, 82% higher than any other company or group that year.<ref name=”ALT_AP”>[http://www.washingtontimes.com/news/2017/may/19/how-big-tobacco-stopped-a-smoking-tax-in-marlboro-/
 +
How Big Tobacco Stopped a Smoking Tax in Marlboro Country (aka Montana)], ''Associated Press '', May 19, 2017, Accessed January 2019 </ref>  In 2017, Altria spent USD 120,000 to lobby in Montana, which exceeded all lobby spending in the first three months. <ref name=”ALT_AP”/>
 
   
 
   
 
Altria has also spent millions of dollars to oppose ballot initiatives for effective tobacco control measures in states:
 
Altria has also spent millions of dollars to oppose ballot initiatives for effective tobacco control measures in states:
 
*2018 Montana USD 1.00 tobacco tax increase: USD 17.2 million to oppose <ref name=”ALT_AP”/>
 
*2018 Montana USD 1.00 tobacco tax increase: USD 17.2 million to oppose <ref name=”ALT_AP”/>
*2018 South Dakota USD 1.00 tobacco tax increase: USD 6 million to oppose <ref> South Dakota Secretary of State, [https://sdcfr.sdsos.gov/Document.aspx?DocumentID=33581&type=doc Campaign Finance Disclosure Report for South Dakotans Against Higher Taxes, filed October 22, 2018], pp. 1-4, Accessed January 2019</ref>
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*2018 South Dakota USD 1.00 tobacco tax increase: USD 6 million to oppose <ref> South Dakota Secretary of State, [https://sdcfr.sdsos.gov/Document.aspx?DocumentID=33581&type=doc Campaign Finance Disclosure Report for South Dakotans Against Higher Taxes, filed October 22, 2018], Pages 1,4, Accessed January 2019</ref>
*2016 California USD 2.00 tobacco tax increase:  USD 44 million to oppose (includes contributions from Altria subsidiaries) <ref> California Fair Political Practices Commission,[http://www.fppc.ca.gov/transparency/top-contributors/nov-16-gen/nov-16-gen-v2.html Top Contributors to Primarily Formed Committees: November 2016 General Election], 7 February 2018, Accessed January 2019</ref>   
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*2016 California USD 2.00 tobacco tax increase:  USD 44 million to oppose (includes contributions from Altria subsidiaries) <ref> California Fair Political Practices Commission,[ http://www.fppc.ca.gov/transparency/top-contributors/nov-16-gen/nov-16-gen-v2.html Top Contributors to Primarily Formed Committees: November 2016 General Election], February 7, 2018, Accessed January 2019</ref>   
*2004 Oklahoma 80-cent tobacco tax increase:  USD 1 million to oppose <ref>[https://newsok.com/article/2871469/tobacco-companies-sellers-fund-effort-against-question Tobacco companies, sellers fund effort against question], ''The Oklahoman'', 26 October 2004, Accessed January 2019</ref>  
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*2004 Oklahoma 80-cent tobacco tax increase:  USD 1 million to oppose <ref>[https://newsok.com/article/2871469/tobacco-companies-sellers-fund-effort-against-question Tobacco companies, sellers fund effort against question], ''The Oklahoman'', October 26, 2004, ,Accessed January 2019</ref>  
 
   
 
   
 
For additional examples, see Campaign for Tobacco-Free Kids [https://www.tobaccofreekids.org/assets/factsheets/0389.pdf factsheet].
 
For additional examples, see Campaign for Tobacco-Free Kids [https://www.tobaccofreekids.org/assets/factsheets/0389.pdf factsheet].
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===Research and Development===
 
===Research and Development===
 
===Marketing to Kids===
 
===Marketing to Kids===
The Federal Trade Commission (FTC) collects and releases marketing and advertising spending by the top five tobacco companies, which includes Altria. The spending amounts in the FTC reports are in aggregate, so that the amounts cannot be broken down by company. In 2016 (the most recent report available), the major tobacco companies spent USD 9.5 billion per year—nearly USD 26 million every day—to promote their products. This amount is a slight increase from 2015 spending, but a 37.6% increase since the 1998 Master Settlement Agreement. Cigarette marketing expenditures increased to USD 8.7 billion in 2016 from USD 8.3 in 2015, due mainly to an increase in spending at the point of sale, including price discounts. The increase in cigarette marketing was coupled with an 11 percent increase in smokeless tobacco marketing. Tobacco companies spent an additional USD 759.3 million on smokeless tobacco marketing—more than five times the amount spent in 1998 and more than three times the amount spent in 2005 (USD 250.8 million), the year before cigarette companies entered the smokeless tobacco market. <ref name= "ALT_FED1">U.S. Federal Trade Commission , [https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2016-federal-trade-commission-smokeless-tobacco-report/ftc_cigarette_report_for_2016_0.pdf Cigarette Report for 2016  ], 2018, pp. 15-19, Accessed January 2019 </ref> <ref name= "ALT_FED2"> U.S. Federal Trade Commission [https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2016-federal-trade-commission-smokeless-tobacco-report/ftc_cigarette_report_for_2016_0.pdf Smokeless Tobacco Report for 2016 ], 2018, pp. 18-22, Accessed January 2019 </ref>
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The Federal Trade Commission (FTC) collects and releases marketing and advertising spending by the top five tobacco companies, which includes Altria. The spending amounts in the FTC reports are in aggregate, so that the amounts cannot be broken down by company. In 2016 (the most recent report available), the major tobacco companies spent USD 9.5 billion per year—nearly USD 26 million every day—to promote their products. This amount is a slight increase from 2015 spending, but a 37.6% increase since the 1998 Master Settlement Agreement. Cigarette marketing expenditures increased to USD 8.7 billion in 2016 from USD 8.3 in 2015, due mainly to an increase in spending at the point of sale, including price discounts. The increase in cigarette marketing was coupled with an 11 percent increase in smokeless tobacco marketing. Tobacco companies spent an additional USD 759.3 million on smokeless tobacco marketing—more than five times the amount spent in 1998 and more than three times the amount spent in 2005 (USD 250.8 million), the year before cigarette companies entered the smokeless tobacco market. <ref name= “ALT_FED1”>U.S. Federal Trade Commission , [https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2016-federal-trade-commission-smokeless-tobacco-report/ftc_cigarette_report_for_2016_0.pdf Cigarette Report for 2016  ], 2018, Pages 15-19, Accessed January 2019 </ref> <ref name= “ALT_FED2”> U.S. Federal Trade Commission [https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2016-federal-trade-commission-smokeless-tobacco-report/ftc_cigarette_report_for_2016_0.pdf Smokeless Tobacco Report for 2016 ], 2018, Pages 18-22, Accessed January 2019 </ref>
 
   
 
   
 
For decades, Altria has recognized the value of marketing to kids. In her Final Opinion in the federal racketeering case against the major tobacco companies, U.S. District Court Judge Gladys Kessler stated,  
 
For decades, Altria has recognized the value of marketing to kids. In her Final Opinion in the federal racketeering case against the major tobacco companies, U.S. District Court Judge Gladys Kessler stated,  
   “From the 1950s to the present, different defendants, at different times and using different methods, have intentionally marketed to young people under the age of twenty-one in order to recruit ‘replacement smokers’ to ensure the economic future of the tobacco industry.” <ref> Tobacco Free Kids website, [https://www.tobaccofreekids.org/assets/content/what_we_do/industry_watch/doj/FinalOpinion.pdf U.S. V. Philip Morris USA, Inc., et al., No. 99-CV-02496GK (U.S. Dist. Ct., D.C.), Final Opinion, August 17, 2006], 2006, Accessed January 2019</ref>  
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   “From the 1950s to the present, different defendants, at different times and using different methods, have intentionally marketed to young people under the age of twenty-one in order to recruit ‘replacement smokers’ to ensure the economic future of the tobacco industry.” <ref> Tobacco Free Kids website, [https://www.tobaccofreekids.org/assets/content/what_we_do/industry_watch/doj/FinalOpinion.pdf U.S. V. Philip Morris USA, Inc., et al., No. 99-CV-02496GK (U.S. Dist. Ct., D.C.), Final Opinion, August 17, 2006], 2006, Accessed January 2019</ref> In 1981, a Philip Morris report stated,    
 
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  “Today’s teenager is tomorrow’s potential regular customer, and the overwhelming majority of smokers first begin to smoke while still in their teens…The smoking patterns of teenagers are particularly important to Philip Morris.” <ref> Philip Morris, [https://www.industrydocumentslibrary.ucsf.edu/tobacco/docs/#id=fgpb0040 Special Report, “Young Smokers: Prevalence, Trends, Implications, and Related Demographic Trends” Bates No. 1000390803.  
In 1981, a Philip Morris report stated,
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] March 1981, Accessed January 2019 </ref>
  “Today’s teenager is tomorrow’s potential regular customer, and the overwhelming majority of smokers first begin to smoke while still in their teens…The smoking patterns of teenagers are particularly important to Philip Morris.” <ref> Philip Morris, [https://www.industrydocumentslibrary.ucsf.edu/tobacco/docs/#id=fgpb0040 Special Report, “Young Smokers: Prevalence, Trends, Implications, and Related Demographic Trends” Bates No. 1000390803.] March 1981, Accessed January 2019 </ref>
 
 
Despite claims that they have changed, the 2014 Surgeon General’s report stated,
 
Despite claims that they have changed, the 2014 Surgeon General’s report stated,
   “the tobacco industry continues to position itself to sustain its sales by recruiting youth and young adults…as consumers of all their nicotine-containing products including cigarettes.” <ref> U.S. Department of Health and Human Services (HHS) website, [https://www.surgeongeneral.gov/library/reports/50-years-of-progress/full-report.pdf The Health Consequences of Smoking—50 Years of Progress: A Report of the Surgeon General], 2014, p. 867, Accessed January 2019 </ref>
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   “the tobacco industry continues to position itself to sustain its sales by recruiting youth and young adults…as consumers of all their nicotine-containing products including cigarettes.” <ref> U.S. Department of Health and Human Services (HHS) website,[ https://www.surgeongeneral.gov/library/reports/50-years-of-progress/full-report.pdf The Health Consequences of Smoking—50 Years of Progress: A Report of the Surgeon General], 2014, Page 867, Accessed January 2019 </ref>
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This report added to the findings of a comprehensive report on the media and tobacco use, released by the National Cancer Institute (NCI) in June 2008, that describes how tobacco company advertising targets specific populations, such as youth and young adults, by employing themes and messages that resonate with them. <ref> National Cancer Institute website, [ http://cancercontrol.cancer.gov/tcrb/monographs/19/m19_complete.pdf The Role of the Media in Promoting and Reducing Tobacco Use, Smoking and Tobacco Control Monograph], No. 19, NIH Pub. No. 07-6242, June 2008, Accessed January 2019. </ref>  
 
   
 
   
This report added to the findings of a comprehensive report on the media and tobacco use, released by the National Cancer Institute (NCI) in June 2008, that describes how tobacco company advertising targets specific populations, such as youth and young adults, by employing themes and messages that resonate with them. <ref> National Cancer Institute website, [http://cancercontrol.cancer.gov/tcrb/monographs/19/m19_complete.pdf The Role of the Media in Promoting and Reducing Tobacco Use, Smoking and Tobacco Control Monograph], No. 19, NIH Pub. No. 07-6242, June 2008, Accessed January 2019. </ref>
 
 
 
===Political Spending===
 
===Political Spending===
In the 2017-2018 election cycle, Altria Group gave more than USD 800,000 in Political Action Committees (PAC) contributions to federal candidates (according to the Center for Responsive Politics). <ref name="ALT_CFRPL"> Center for Responsive Politics, [https://www.opensecrets.org/pacs/pacgot.php?cmte=C00089136&cycle=2018 Altria Group Contributions to Federal Candidates, 2018 cycle],  Accessed January 2019 </ref>
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In the 2017-2018 election cycle, Altria Group gave more than USD 800,000 in Political Action Committees (PAC) contributions to federal candidates (according to the Center for Responsive Politics). <ref name=”ALT_CFRPL”> Center for Responsive Politics, [https://www.opensecrets.org/pacs/pacgot.php?cmte=C00089136&cycle=2018 Altria Group Contributions to Federal Candidates, 2018 cycle],  Accessed January 2019 </ref>
 
The Altria PAC also contributed to numerous other leadership PACs and party committees.{{r|ALT_CFRPL}}  Since 2005, Altria has given more than USD 6 million in PAC contributions to federal candidates. {{r|ALT_FED1}}  {{r|ALT_FED2}}
 
The Altria PAC also contributed to numerous other leadership PACs and party committees.{{r|ALT_CFRPL}}  Since 2005, Altria has given more than USD 6 million in PAC contributions to federal candidates. {{r|ALT_FED1}}  {{r|ALT_FED2}}
  
 
==Reporting and Regulation==  
 
==Reporting and Regulation==  
 
===Tobacco Litigation===
 
===Tobacco Litigation===
Altria is involved in several legal proceedings as defendants and plaintiffs, at the state and federal level. A series of lawsuits against tobacco companies in Florida, known as the Engle progeny cases, where smokers have sued tobacco companies for damages, continues to proceed, with some results in Altria’s favor and some results in favor of the plaintiffs. Altria reports the most recent results in its annual reports to the SEC.  <ref name=”ALT_TL”> Altria Group, Inc., [https://www.sec.gov/Archives/edgar/data/764180/000076418018000028/a2017form10-kq4.htm 2017 Annual Report Form 10-K], 27 February 2018, pp. 10, 71-96, Accessed January 2019 </ref>
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Altria is involved in several legal proceedings as defendants and plaintiffs, at the state and federal level. A series of lawsuits against tobacco companies in Florida, known as the Engle progeny cases, where smokers have sued tobacco companies for damages, continues to proceed, with some results in Altria’s favor and some results in favor of the plaintiffs. Altria reports the most recent results in its annual reports to the SEC.  <ref name=”ALT_TL”> Altria Group, Inc., [https://www.sec.gov/Archives/edgar/data/764180/000076418018000028/a2017form10-kq4.htm 2017 Annual Report Form 10-K, February 27, 2018, Pages 10, 71-96, Accessed January 2019 </ref>
 
   
 
   
Altria has also challenged the FDA in court over various regulatory actions, including the FDA’s revised guidance on substantial equivalence, and FDA’s application of the descriptor ban on cigars manufactured by Altria’s subsidiary, John Middleton, under the brand name “Black & Mild” after FDA deemed authority over cigars. {{r|ALT_TABLE|p=26-27}}  
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Altria has also challenged the FDA in court over various regulatory actions, including the FDA’s revised guidance on substantial equivalence (“SE”), and FDA’s application of the descriptor ban on cigars manufactured by Altria’s subsidiary, John Middleton, under the brand name “Black & Mild” after FDA deemed authority over cigars. {{r|ALT_TABLE|p=26-27}}  
 
   
 
   
 
Altria has also been involved in lawsuits at the state and local level, to block tobacco control policies from going into effect or to threaten states and localities from passing legislation.<ref> [https://www.bloomberg.com/news/articles/2011-11-15/smokeless-tobacco-makers-lawsuit-over-new-york-city-law-is-thrown-out Altria Suit to Block New York Flavored Tobacco Ban Dismissed], ''Bloomberg'', November 2011, Accessed January 2019 </ref>
 
Altria has also been involved in lawsuits at the state and local level, to block tobacco control policies from going into effect or to threaten states and localities from passing legislation.<ref> [https://www.bloomberg.com/news/articles/2011-11-15/smokeless-tobacco-makers-lawsuit-over-new-york-city-law-is-thrown-out Altria Suit to Block New York Flavored Tobacco Ban Dismissed], ''Bloomberg'', November 2011, Accessed January 2019 </ref>
 
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==Partners and Allies==
 
==Partners and Allies==
 
===Audit and Accounting===
 
===Audit and Accounting===

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