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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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