Investment in SABMiller
At December 31, 2013, Altria Group, Inc. held approximately 26.8% of the economic and voting interest of SABMiller. Altria Group, Inc. accounts for its investment in SABMiller under the equity method of accounting.
Pre-tax earnings from Altria Group, Inc.’s equity investment in SABMiller consisted of the following:
|
| | | | | | | | | | | |
| For the Years Ended December 31, |
(in millions) | 2013 |
| | 2012 |
| | 2011 |
|
Equity earnings | $ | 906 |
| | $ | 1,181 |
| | $ | 703 |
|
Gains resulting from issuances of common stock by SABMiller | 85 |
| | 43 |
| | 27 |
|
| $ | 991 |
| | $ | 1,224 |
| | $ | 730 |
|
Altria Group, Inc.’s equity earnings for the year ended December 31, 2012 included its share of pre-tax non-cash gains of $342 million resulting from SABMiller’s strategic alliance transactions with Anadolu Efes and Castel.
Summary financial data of SABMiller is as follows:
|
| | | | | | | |
| At December 31, |
(in millions) | 2013 |
| | 2012 |
|
Current assets | $ | 5,833 |
| | $ | 5,742 |
|
Long-term assets | $ | 48,460 |
| | $ | 51,733 |
|
Current liabilities | $ | 8,177 |
| | $ | 8,944 |
|
Long-term liabilities | $ | 20,315 |
| | $ | 22,000 |
|
Noncontrolling interests | $ | 1,202 |
| | $ | 1,105 |
|
|
| | | | | | | | | | | |
| For the Years Ended December 31, |
(in millions) | 2013 |
| | 2012 |
| | 2011 |
|
Net revenues | $ | 22,684 |
| | $ | 23,449 |
| | $ | 20,780 |
|
Operating profit | $ | 4,201 |
| | $ | 5,243 |
| | $ | 3,603 |
|
Net earnings | $ | 3,375 |
| | $ | 4,362 |
| | $ | 2,596 |
|
The fair value of Altria Group, Inc.’s equity investment in SABMiller is based on unadjusted quoted prices in active markets and is classified in Level 1 of the fair value hierarchy. The fair value of Altria Group, Inc.’s equity investment in SABMiller at December 31, 2013 and 2012, was $22.1 billion and $19.8 billion, respectively, as compared with its carrying value of $6.5 billion and $6.6 billion, respectively.
At December 31, 2013, Altria Group, Inc.’s earnings reinvested in the business on its consolidated balance sheet included approximately $2.7 billion of undistributed earnings from its equity investment in SABMiller.
