MO · 10-Q · 2026Q3 · Full report
Settlement and FDA Payments
ALTRIA GROUP, INC. · 2026-10-29 · Importance 66 · Surprise 40 · From source text
Altria estimated average charges to cost of sales of $3.0 billion annually for the next three years for State Settlement Agreement payments and FDA user fees, based on current agreements and estimates. Payments for these items totaled approximately $2.6 billion in the first nine months of 2026, compared with $2.9 billion in the same 2025 period. Related cost-of-sales charges were $2.4 billion for the first nine months of 2026 versus $2.5 billion in 2025, including $0.8 billion in the third quarter of 2026 versus $0.9 billion a year earlier. State Settlement Agreement amounts are generally paid in April of the following year, while FDA user fees are generally paid in the quarter incurred.
Key facts
- Altria estimated State Settlement Agreement and FDA user fee charges to cost of sales would average $3.0 billion annually for the next three years, based on current agreements and estimates. source
- Altria paid approximately $2.6 billion for State Settlement Agreements and FDA user fees in the nine months ended September 30, 2026, compared with $2.9 billion in the corresponding 2025 period. source
- Altria recorded $2.4 billion of State Settlement Agreement and FDA user fee cost-of-sales charges for the nine months ended September 30, 2026, compared with $2.5 billion in 2025. source
- Altria recorded $0.8 billion of State Settlement Agreement and FDA user fee cost-of-sales charges for the three months ended September 30, 2026, compared with $0.9 billion in 2025. source
- As of December 2025, the State Settlement Agreements’ applicable inflation percentage was approximately 2.7%, based on the latest CPI-U data. source
- State Settlement Agreement cost-of-sales charges are generally paid in April of the following year, while FDA user fees are generally paid in the quarter incurred. source
- Altria stated that adverse litigation outcomes or settlements could materially adversely affect results of operations, cash flows or financial position in a particular fiscal quarter or year. source
- State Settlement Agreement payments are adjusted for inflation, operating income, market share, and industry volume; higher inflation can increase Altria’s financial liability. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -41.6% | Altria estimated State Settlement Agreement and FDA user fee charges to cost of sales would average $3.0 billion annually for the next… |
| operating_income | positive | realized | +1.6% | Altria recorded $2.4 billion of State Settlement Agreement and FDA user fee cost-of-sales charges for the nine months ended September 30,… |
| cash | positive | realized | +0.9% | Altria paid approximately $2.6 billion for State Settlement Agreements and FDA user fees in the nine months ended September 30, 2026,… |