MO · 10-Q · 2026Q2 · Full report
Oral Tobacco Margin Drivers
ALTRIA GROUP, INC. · 2026-07-30 · Importance 50 · Surprise 58 · In source text
Reported oral tobacco operating company income decreased $115 million, or 12.4%, in the first six months of 2026, primarily because of $78 million in USSTC Facilities Consolidation costs, $87 million from lower shipment volume and $25 million of higher costs. Reported OCI margin declined 7.6 percentage points to 61.0% for the six-month period and 13.2 percentage points to 55.2% in the second quarter. Adjusted OCI decreased $39 million, or 4.2%, for the first six months and $40 million, or 8.0%, for the second quarter. Adjusted OCI margins declined 1.9 percentage points to 67.0% for six months and 2.0 percentage points to 66.7% for the quarter, as lower volume and higher costs outweighed pricing benefits.
Key facts
- A hypothetical 1% increase in the discount rate used to estimate the fair value of the Skoal trademark would have resulted in an impairment charge of approximately $90 million based on the 2025 annual impairment test. source
- At December 31, 2025, the estimated fair value of the Skoal trademark exceeded its carrying value by approximately 7% ($0.3 billion). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | contingent | +0.1% | At December 31, 2025, the estimated fair value of the Skoal trademark exceeded its carrying value by approximately 7% ($0.3 billion). |
| assets | negative | contingent | -0.0% | A hypothetical 1% increase in the discount rate used to estimate the fair value of the Skoal trademark would have resulted in an… |