Kraft Spin-off (Completed)
Investor Information FAQs

Kraft Spin-off Terms and Key Dates

Q:	What was the dollar value of the Kraft Spin-off? How was the value calculated?
Q:	Can you explain exactly what happened at each key point in the process of the Kraft Spin-off?
Q:	Are there any transition agreements between Altria and Kraft now that the Kraft Spin-off is completed?
Q:	How did my ownership in Altria change as a result of the Kraft Spin-off?
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Q:	What was the dollar value of the Kraft Spin-off? How was the value calculated?
A:	The Kraft Spin-off was valued at approximately $46.1 billion based on the closing price on March 30, 2007, for Kraft of $31.66 per share and 1,455,000,000 Kraft shares distributed by Altria. The distribution of 88.9% of Kraft's outstanding shares owned by Altria was made on March 30, 2007, to Altria's shareholders of record as of 5:00 p.m. Eastern Time on March 16, 2007 (the Record Date). On the Distribution Date, Altria distributed 0.692024 of a share of Kraft stock for each share of Altria stock outstanding as of the Record Date, based on the number of Altria shares outstanding on that date. For amounts of less than one share, Altria's shareholders received cash in lieu of a fractional share of Kraft. The Distribution Ratio of 0.692024 was determined on the Record Date.
Q:	Can you explain exactly what happened at each key point in the process of the Kraft Spin-off?
A:	January 31, 2007 – Altria's Board authorized the Kraft Spin-off of Altria's ownership interest in Kraft Foods Inc. March 16, 2007 – Altria shareholders of record as of 5:00 p.m. Eastern Time on this date (the Record Date) became entitled to receive 0.692024 of a share of Kraft stock for each share of Altria stock owned. March 20, 2007 – An Information Statement was mailed to shareholders of record of Altria stock as of the Record Date. The Information Statement provided details about the Kraft Spin-off, including the procedures by which the Kraft stock was distributed. March 30, 2007 – Kraft shares were distributed to shareholders of record of Altria stock that was held through the Distribution Date.
Q:	Are there any transition agreements between Altria and Kraft now that the Kraft Spin-off is completed?
A:	In connection with the Kraft Spin-off, Altria entered into certain agreements with Kraft to define responsibility for obligations arising before and after the Kraft Spin-off including, among others, obligations relating to employees, certain transition services and taxes.
Q:	How did my ownership in Altria change as a result of the Kraft Spin-off?
A:	The number of shares of Altria stock that you own did not change as a result of the Spin-off, but the dollar value of those shares did. On the Distribution Date, Altria's shareholders received 0.692024 of a share of Kraft stock for each share of Altria stock that they owned. The fair market value of each Altria share, however, was adjusted to reflect the Kraft Spin-off, and hence, the loss of the value of the Kraft stock.