Instructions:
Altria Group, Inc., has several pages in the notes to their recent financial statement (Annual Report) dedicated to describing contingent liabilities. These pages include extensive descriiptions of multiple contingent liabilities. Use the Internet to research Altria Group, Inc. at http://www.altria.com Links to an external site. Then click on the Investor’s tab. From the drop-down, select Annual Reports. Click on the most recent Interactive Annual Report and go to the Table of Contents. You will look for the Contingent Liabilities section of the notes.
Questions:
1) identify the major business units for Altria Group.
2) Then based on your understanding of the company, why would Altria Group require this many pages of contingency disclosures?
3) What are the nature of the contingency disclosures? (Note: You do not have to list each lawsuit, just summarize the types of Altria Group’s contingent liabilities.)
4) If you were considering investing in Altria Group, how would these contingent liabilities impact your investment decision?
