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Philip Morris International Spin-off (Completed)Deferred Profit-Sharing (DPS) PlanIf you are a participant in the DPS Plan and all or a portion of your account was invested in the Altria Stock investment option at the close of business on the Distribution Date, the following contains important information related to the DPS Plan that affected your account. If no portion of your account was invested in the Altria Stock investment option as of the close of business on the Distribution Date, the Spin-off did not impact on your investments in the DPS Plan. You must have been invested in the Altria Stock investment option at the close of business on the Distribution Date to be eligible to participate in the distribution of PMI stock. The Distribution of PMI Stock in the DPS PlanIf you were a participant in the DPS Plan with a balance in the Altria Stock investment option on the Distribution Date, you were treated in a manner comparable to all public shareholders. Unlike public shareholders, however, DPS Plan participants may hold whole and fractional shares of Altria stock. Both your whole and fractional shares of Altria stock were credited with shares of PMI stock under the DPS Plan. This means for each whole and fractional share of Altria stock in your DPS Plan account at the close of business on the Distribution Date, you will have:
Example In this example, let's look at how the Spin-off affected the DPS Plan account of John, a participant who held Altria stock in the Altria Stock investment option at the close of business on the Distribution Date.
John's DPS Plan account was credited with 1,000.471 shares of PMI stock in a new investment option known as the PMI Stock investment option. Immediately after the Spin-off, the combined value of John's shares of Altria stock and his new shares of PMI stock equaled John's value in Altria stock just before the Spin-off. The price per share of Altria stock, however, decreased as a result of the Spin-off, reflecting the value of the PMI component of Altria's stock price prior to the Spin-off. The stock of each company now trades independently, from each other and the value of John's shares of Altria stock and PMI stock reflects the price movement of both independent companies. Note: The above example is for illustrative purposes only.
Employer Securities and TaxesThe shares of Altria stock in the Altria Stock investment option and the shares of PMI stock in the PMI Stock investment option are each employer securities. A tax benefit known as net unrealized appreciation may be available to any participant who receives an in-kind distribution of either or both of these employer securities as part of a lump-sum distribution or as a return of employee after-tax contributions from the DPS Plan. As this is a complicated area of the tax laws, you should consult with a tax advisor before taking the distribution from the DPS Plan. Cost BasisCost basis is used to determine net unrealized appreciation on in-kind distributions of employer securities. The cost basis of Altria stock in the Altria Stock investment option was allocated between your shares of Altria stock and the shares of PMI stock that you received as a result of the Spin-off. Fidelity maintains the records of your cost basis of Altria stock acquired in the Altria Stock investment option. The Following Sections Will Provide You With Additional Information:
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GlossaryGlossary terms are shown in colored links.Contact InformationAltria Group Benefits Center Contacts for Altria |
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