MO · 10-Q · 2026Q2 · Full report

Settlement and FDA Payments

ALTRIA GROUP, INC. · 2026-07-30 · Importance 56 · Surprise 24 · From source text

PM USA’s State Settlement Agreements with U.S. states, the District of Columbia and certain U.S. territories, together with quarterly FDA user fees imposed on PM USA, Middleton and USSTC under the Family Smoking Prevention and Tobacco Control Act, are expected to result in average cost-of-sales charges of approximately $3.0 billion annually over the next three years. The estimate incorporates inflation, operating income, market share and annual industry volume decline assumptions, but excludes potential NPM Adjustment Items. Altria paid approximately $2.6 billion during the six months ended June 30, 2026, versus $2.9 billion in the comparable 2025 period, and recorded $1.6 billion of charges in each six-month period. Future payments are subject to adjustments for inflation, operating income, market share and volume, and actual amounts may differ from current estimates.

Key facts

• Based on current agreements and estimates, the estimated amounts that Altria may charge to cost of sales for payments related to State Settlement Agreements and FDA user fees are $3.0 billion on average for the next three years. source
• Altria paid approximately $2.6 billion and $2.9 billion for the six months ended June 30, 2026 and 2025, respectively, in connection with the State Settlement Agreements and FDA user fees. source
• Altria recorded $1.6 billion of charges to cost of sales for each of the six months ended June 30, 2026 and 2025, and $0.9 billion of charges to cost of sales for each of the three months ended June 30, 2026 and 2025, in connection with the State Settlement Agreements and FDA user fees. source
• The FSPTCA user fees are imposed on cigarette, cigarette tobacco, smokeless tobacco, cigar and pipe tobacco manufacturers and importers, and the FSPTCA does not impose user fees on e-vapor or oral nicotine pouch manufacturers. source
• PM USA has entered into State Settlement Agreements with the states, the District of Columbia and certain U.S. territories that call for certain payments and PM USA, Middleton and USSTC are subject to quarterly FDA user fees imposed by the FSPTCA. source

Impact estimates