Overview

Altria Group

Our Companies & Their Brands

Our Management Team

National Impact

Corporate Governance

PMI Spin-off Compensation & Benefits Programs
-	Deferred Profit-Sharing Plan
	Stock-Based Plans
	-	Stock Options
	-	Restricted Stock
	-	Deferred Stock
	-	Tax Implications
	-	Suspension of Option Exercises
	-	Administrative Matters
-	FAQs

Our History

About Altria FAQs

Philip Morris International Spin-off (Completed)
Stock-Based Plans

The following section includes important information about how the Spin-off affected your stock options, restricted stock or deferred stock.

Highlights

Altria's objective, to the extent possible, has been to treat employees and former employees in a manner comparable to the way public shareholders were treated in the Spin-off.

If you held Altria stock options, in addition to continuing to hold these options, you received one PMI stock option for each Altria option held. The grant prices of the new PMI options were set and those of each Altria stock option adjusted so the total intrinsic value with respect to each stock option grant immediately after the Adjustment was the same as it was immediately before the Adjustment.
If you held Altria restricted or deferred stock awarded prior to January 30, 2008, you received one restricted or deferred share of PMI stock in addition to each share of Altria restricted or deferred stock. In the case of Altria deferred stock awarded on or after January 30, 2008, however, your award was adjusted on the Distribution Date and delivered to you entirely in the deferred stock of your employer (either Altria or PMI).

As you read the following information, keep in mind that Altria stock before the Spin-off included the value of PMI stock owned by Altria. As a result of the Spin-off, Altria distributed its ownership of PMI to Altria's shareholders. Therefore, the price of Altria stock decreased to reflect that PMI is no longer owned by Altria. Since the number of shares of, or options on, Altria stock that you have will not change (with the exception of the Altria deferred stock awarded on or after January 30, 2008), you received shares of, or options on, PMI stock to keep your holdings "whole." For Altria deferred stock awarded on or after January 30, 2008, your award has been restated and delivered to you in the deferred stock of your employer (either Altria or PMI ) - in either case, the value of your adjusted grant is equal to the value of your holdings when the Adjustment occurred.

The PMI Spin-off has no impact on Kraft stock options, Kraft restricted or deferred stock, or Kraft Stock Appreciation Rights (SARs).