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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Earnings Before Income Taxes and Provision for Income Taxes | Earnings (losses) before income taxes and provision (benefit) for income taxes consisted of the following:
| For the Years Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Earnings (losses) before income taxes: |  |  |  |  |
United States | $ | 13,680 |  |  | $ | 10,971 |  |  | $ | 7,628 |
Outside United States | (22) |  |  | (43) |  |  | (239) |
Total | $ | 13,658 |  |  | $ | 10,928 |  |  | $ | 7,389 |
Provision (benefit) for income taxes: |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 927 |  |  | $ | 2,346 |  |  | $ | 1,968 |
State and local | 516 |  |  | 681 |  |  | 603 |
Outside United States | — |  |  | 1 |  |  | 1 |
| 1,443 |  |  | 3,028 |  |  | 2,572 |
Deferred: |  |  |  |  |
Federal | 764 |  |  | (133) |  |  | (893) |
State and local | 187 |  |  | (97) |  |  | (54) |
| 951 |  |  | (230) |  |  | (947) |
Total provision for income taxes | $ | 2,394 |  |  | $ | 2,798 |  |  | $ | 1,625 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending unrecognized tax benefits was as follows:
| For the Years Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Balance at beginning of year | $ | 1,608 |  |  | $ | 69 |  |  | $ | 53 |
Additions based on tax positions related to the current year | — |  |  | 1,548 |  |  | 1 |
Additions for tax positions of prior years | 33 |  |  | — |  |  | 16 |
Reductions for tax positions related to IRS Agreement | (1,343) |  |  | — |  |  | — |
Reductions for tax positions of prior years | (16) |  |  | (6) |  |  | — |
Tax settlements | — |  |  | (3) |  |  | (1) |
Balance at end of year | $ | 282 |  |  | $ | 1,608 |  |  | $ | 69 |
Reconciliation of Effective Tax Rate and U.S. Federal Statutory Rate | A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to earnings before income taxes was as follows:
|  | For the Years Ended December 31,
|  | 2024 |  | 2023 |  | 2022
(dollars in millions) |  | $ |  | % |  | $ |  | % |  | $ |  | %
U.S. federal statutory rate |  | $ | 2,868 |  |  | 21.0 | % |  | $ | 2,295 |  |  | 21.0 | % |  | $ | 1,552 |  |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal tax benefit |  | 557 |  |  | 4.1 |  |  | 463 |  |  | 4.2 |  |  | 435 |  |  | 5.9 |
Tax basis in foreign investments |  | (11) |  |  | (0.1) |  |  | 34 |  |  | 0.3 |  |  | 11 |  |  | 0.1 |
Uncertain tax positions |  | (15) |  |  | (0.1) |  |  | 8 |  |  | 0.1 |  |  | — |  |  | — |
Investment in ABI |  | (35) |  |  | (0.3) |  |  | (37) |  |  | (0.3) |  |  | (24) |  |  | (0.3) |
Investment in JUUL |  | — |  |  | — |  |  | 53 |  |  | 0.5 |  |  | 306 |  |  | 4.1 |
Investment in Cronos |  | 3 |  |  | — |  |  | 11 |  |  | 0.1 |  |  | 30 |  |  | 0.4 |
Valuation allowance releases |  | (939) |  |  | (6.9) |  |  | — |  |  | — |  |  | (664) |  |  | (9.0) |
Other |  | (34) |  |  | (0.2) |  |  | (29) |  |  | (0.3) |  |  | (21) |  |  | (0.2) |
Effective tax rate |  | $ | 2,394 |  |  | 17.5 | % |  | $ | 2,798 |  |  | 25.6 | % |  | $ | 1,625 |  |  | 22.0 | %
Schedule of Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at December 31:
(in millions) | 2024 |  | 2023
Deferred income tax assets: |  |  |
Accrued postretirement and postemployment benefits | $ | 270 |  |  | $ | 302 |
Settlement charges | 585 |  |  | 644 |
JUUL-related losses | 207 |  |  | 2,028 |
Investment in Cronos | 404 |  |  | 397 |
IQOS deferred gain | — |  |  | 691 |
Research and development costs | 112 |  |  | 86 |
Net operating losses and tax credit carryforwards | 224 |  |  | 217 |
Other | — |  |  | 39 |
Total deferred income tax assets | 1,802 |  |  | 4,404 |
Deferred income tax liabilities: |  |  |
Property, plant and equipment | (235) |  |  | (237) |
Intangible assets | (3,032) |  |  | (3,210) |
Investment in ABI | (1,370) |  |  | (1,391) |
Accrued pension costs | (108) |  |  | (81) |
Other | (133) |  |  | — |
Total deferred income tax liabilities | (4,878) |  |  | (4,919) |
Valuation allowances | (668) |  |  | (2,256) |
Net deferred income tax liabilities | $ | (3,744) |  |  | $ | (2,771) |
Summary of Valuation Allowance | A reconciliation of the beginning and ending valuation allowances was as follows:
|  | For the Years Ended December 31,
(in millions) |  | 2024 |  | 2023 |  | 2022
Balance at beginning of year |  | $ | 2,256 |  |  | $ | 2,800 |  |  | $ | 3,097 |
Additions to valuation allowance charged to income tax expense |  | 244 |  |  | 114 |  |  | 429 |
Reductions to valuation allowance credited to income tax benefit |  | (1,337) |  |  | (6) |  |  | (730) |
(Reductions) additions to valuation allowance due to NJOY Transaction (no impact to earnings) |  | (4) |  |  | 12 |  |  | — |
Reductions to valuation allowance offset to deferred tax asset (no impact to earnings) |  | (491) |  |  | (663) |  |  | — |
Foreign currency translation |  | — |  |  | (1) |  |  | 4 |
Balance at end of year |  | $ | 668 |  |  | $ | 2,256 |  |  | $ | 2,800 |

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