MO · 10-Q · 2026Q3 · Full report

E-Vapor Goodwill Impairment

ALTRIA GROUP, INC. · 2026-10-29 · Importance 52 · Surprise 42

Altria recorded a non-cash, pre-tax impairment charge of $873 million for the nine months ended September 30, 2025 to reduce the e-vapor reporting unit’s goodwill to estimated fair value. The impairment followed the ITC exclusion and cease-and-desist orders prohibiting importation and sale of NJOY ACE in the United States and expectations that enforcement against illicit flavored disposable e-vapor products would progress more gradually than initially anticipated. The prior-year charge increased the reported year-over-year operating-income growth comparison for the nine months ended September 30, 2026.

Key facts

• Altria recorded $873 million of non-cash impairment charges for the e-vapor reporting unit goodwill during the nine months ended September 30, 2025. source
• A hypothetical 1% increase in the discount rate in Altria’s 2025 annual e-vapor reporting unit impairment test would have resulted in an approximately $150 million goodwill impairment charge. source
• At December 31, 2025, the e-vapor reporting unit goodwill carrying value was $610 million after impairment charges in the first and fourth quarters of 2025, and its estimated fair value approximated carrying value. source
• Altria could record additional material non-cash e-vapor goodwill impairments in future periods if its e-vapor assumptions fail to materialize, litigation outcomes are unfavorable, or the discount rate increases. source
• Altria reported no events or circumstances indicating impairment of e-vapor reporting unit goodwill for the nine and three months ended September 30, 2026. source