Financials Ex-Kraft

Notes to Pro Forma Consolidated Condensed Financial Statements

(a)	These columns reflect the historical consolidated statement of earnings and consolidated balance sheet of Altria, as appropriate.
(b)	These columns reflect the removal of Kraft’s consolidated statement of earnings from the Altria historical consolidated financial statements.
(c)	Represents the adjustment to remove the minority interest in Kraft’s earnings from continuing operations in the Altria historical consolidated statement of earnings.
(d)	This column reflects the removal of Kraft’s consolidated balance sheet from the Altria historical consolidated balance sheet.
(e)	Represents the adjustment to record the pro forma cash payment by Kraft to Altria of $133 million as a result of the modifications to the existing stock awards that were described in the introduction to the pro forma condensed consolidated financial statements. This cash receipt is reflected as a capital transaction in the Altria pro forma condensed consolidated balance sheet.
(f)	Represents the adjustment to record the pro forma cash payment by Altria to Kraft for tax contingencies of $305 million and the related accrued pre-tax interest of $66 million, ($42 million after tax). This entry also reflects the recognition of a long-term receivable from Kraft on the pro forma condensed consolidated balance sheet. This receivable arises from the Tax Sharing Agreement between Altria and Kraft, whereby Kraft will reimburse Altria for Kraft’s portion of tax contingencies that existed prior to the spin-off that may be paid to the taxing authorities in the future. The Altria pro forma condensed consolidated balance sheet contains a corresponding liability to the taxing authorities for the period prior to the spin-off under consolidated tax return regulations.
(g)	Represents the cash settlement of the $607 million payable to Altria recorded by Kraft in its historical balance sheet.
(h)	Represents an adjustment to the dividend of Kraft stock to Altria stockholders for the removal of the minority interest liability ($3,083 million) recorded in the historical balance sheet of Altria, partially offset by the removal of the goodwill ($1,485 million) recorded by Altria as a result of Kraft share repurchases. The total dividend to stockholders of $26,957 million reflects the removal of Kraft’s net equity of $28,555 million, partially offset by these adjustments.