MO · 10-Q · 2026Q2 · Full report

E-Vapor Goodwill Impairment Risk

ALTRIA GROUP, INC. · 2026-07-30 · Importance 53 · Surprise 60 · In source text

In 2025, Altria recorded impairments that reduced e-vapor reporting unit goodwill to an estimated fair value and carrying value of $610 million at December 31, 2025. The impairments followed the ITC exclusion order and cease-and-desist orders that prohibited importing and selling NJOY ACE in the United States, combined with slower expected enforcement against illicit flavored disposable e-vapor products. A hypothetical 1% increase in the discount rate used in the 2025 annual test would have produced an additional approximately $150 million goodwill impairment. Future impairment risk depends on enforcement timing, FDA authorizations, NJOY commercialization, e-vapor category growth and conversion of illicit-product consumers.

Key facts

• Altria states there is a risk that it may be required to write down goodwill and intangible assets, including trademarks and other intellectual property, due to impairment. source
• Altria recorded a non-cash impairment charge of $873 million to reduce the carrying value of the e-vapor reporting unit goodwill for the six months ended June 30, 2025. source
• If the discount rate used to estimate the fair value of the e-vapor reporting unit increased by a hypothetical 1%, it would have resulted in a goodwill impairment charge of approximately $150 million based on the 2025 annual impairment test. source
• As of December 31, 2025, the estimated fair value of the e-vapor goodwill was $610 million after recording impairments during the first and fourth quarters of 2025. source
• The carrying value of the e-vapor reporting unit’s net assets (including the effect of intercompany debt) was negative and approximated its estimated fair value as of December 31, 2025. source
• Altria conducted an annual goodwill and indefinite-lived intangible asset impairment review as of October 1 of each year and more frequently if events occur; there were no events requiring an interim quantitative impairment assessment as of June 30, 2026. source
• There were no events or circumstances indicating an impairment of the e-vapor reporting unit goodwill or the Skoal trademark for the six and three months ended June 30, 2026. source

Impact estimates