XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.23.3

Segment Reporting | 9 Months Ended
--- | ---
Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting At September 30, 2023 our reportable segments were smokeable products and oral tobacco products, which include (i) smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; and (ii) oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. The all other category included (i) the financial results of NJOY (beginning June 1, 2023); (ii) Helix ROW; (iii) our former financial services business, which completed the wind-down of its portfolio of finance assets in 2022; and (iv) the IQOS System heated tobacco business. Our chief operating decision maker (“CODM”) reviews operating companies income (loss) (“OCI”) to evaluate the performance of, and allocate resources to, our segments. OCI for our segments is defined as operating income before general corporate expenses and amortization of intangibles. Interest and other debt expense, net, along with net periodic benefit income, excluding service cost, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by our CODM. Segment data were as follows:
|  | For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
(in millions) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Net revenues: |  |  |  |  |  |  |  |
Smokeable products |  | $ | 16,482 |  |  | $ | 17,020 |  |  | $ | 5,572 |  |  | $ | 5,882 |
Oral tobacco products |  | 1,993 |  |  | 1,948 |  |  | 685 |  |  | 670 |
All other |  | 33 |  |  | 17 |  |  | 24 |  |  | (2) |
Net revenues |  | $ | 18,508 |  |  | $ | 18,985 |  |  | $ | 6,281 |  |  | $ | 6,550 |
Earnings before income taxes: |  |  |  |  |  |  |  |
OCI: |  |  |  |  |  |  |  |
Smokeable products |  | $ | 8,092 |  |  | $ | 8,112 |  |  | $ | 2,743 |  |  | $ | 2,791 |
Oral tobacco products |  | 1,314 |  |  | 1,262 |  |  | 455 |  |  | 425 |
All other |  | (17) |  |  | (27) |  |  | (4) |  |  | (7) |
Amortization of intangibles |  | (87) |  |  | (54) |  |  | (42) |  |  | (19) |
General corporate expenses |  | (551) |  |  | (192) |  |  | (63) |  |  | (78) |
Operating income |  | 8,751 |  |  | 9,101 |  |  | 3,089 |  |  | 3,112 |
Interest and other debt expense, net |  | 758 |  |  | 832 |  |  | 272 |  |  | 271 |
Net periodic benefit income, excluding service cost |  | (95) |  |  | (137) |  |  | (33) |  |  | (44) |
(Income) losses from investments in equity securities |  | (105) |  |  | 3,707 |  |  | (58) |  |  | 2,478 |
Loss on Cronos-related financial instruments |  | — |  |  | 14 |  |  | — |  |  | — |
Earnings before income taxes |  | $ | 8,193 |  |  | $ | 4,685 |  |  | $ | 2,908 |  |  | $ | 407 |
The comparability of OCI for our reportable segments was affected by the following: ▪Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded pre-tax income for NPM adjustment items of $15 million for the nine and three months ended September 30, 2023 and $60 million for the nine months ended September 30, 2022 in our smokeable products segment. We recorded these items as reductions to cost of sales in our condensed consolidated statements of earnings, which resulted in increased OCI in our smokeable products segment. NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the Master Settlement Agreement (“NPM Adjustment Items”). For additional information, see Health Care Cost Recovery Litigation in Note 13. Contingencies. ▪Tobacco and Health and Certain Other Litigation Items: We recorded pre-tax charges related to tobacco and health and certain other litigation items as follows:
|  | For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
(in millions) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Smokeable products segment |  | $ | 65 |  |  | $ | 71 |  |  | $ | 13 |  |  | $ | 21 |
General corporate expenses |  | 348 |  |  | 27 |  |  | 10 |  |  | 20 |
Interest and other debt expense, net |  | 11 |  |  | 3 |  |  | — |  |  | 2 |
Total |  | $ | 424 |  |  | $ | 101 |  |  | $ | 23 |  |  | $ | 43 |
We recorded the amounts shown in the table above for the smokeable products segment and general corporate expenses in marketing, administration and research costs in our condensed consolidated statements of earnings. For further discussion, see Note 13. Contingencies.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration