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Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting At September 30, 2025, our reportable segments were (i) smokeable products, consisting of combustible cigarettes and machine-made large cigars; and (ii) oral tobacco products, consisting of MST products and oral nicotine pouches. Our all other category included (i) NJOY; (ii) Horizon; (iii) Helix International; and (iv) other business activities, which primarily consists of research and development (“R&D”) expense related to certain new product platforms and technologies. Altria’s Chief Executive Officer is our chief operating decision maker (“CODM”). Our measure of segment profitability is segment operating companies income (loss) (“OCI”), which is defined as operating income before general corporate expenses and amortization of intangibles. Our CODM uses OCI for planning, forecasting and evaluating business and financial performance of the segments, including allocating capital and other resources to our segments and evaluating results relative to employee compensation targets. 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. We do not disclose information about total assets by segment because such information is not reported to or used by our CODM. Segment goodwill and other intangible assets, net, are disclosed in Note 4. Goodwill and Other Intangible Assets, net. Segment data were as follows:
| For the Nine Months Ended September 30, |  | For the Three Months Ended September 30, |  |
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Net revenues: |  |  |  |  |  |  |  |  |  |  |
Smokeable products | $ | 15,366 |  |  | $ | 15,941 |  |  | $ | 5,387 |  |  | $ | 5,540 |  |  |  |  |
Oral tobacco products | 2,096 |  |  | 2,084 |  |  | 689 |  |  | 722 |  |  |  |  |
All other | (29) |  |  | 19 |  |  | (4) |  |  | (3) |  |  |  |  |
Net revenues | $ | 17,433 |  |  | $ | 18,044 |  |  | $ | 6,072 |  |  | $ | 6,259 |  |  |  |  |
Earnings before income taxes: |  |  |  |  |  |  |  |  |  |  |
OCI: |  |  |  |  |  |  |  |  |  |  |
Smokeable products | $ | 8,341 |  |  | $ | 8,183 |  |  | $ | 2,942 |  |  | $ | 2,937 |  |  |  |  |
Oral tobacco products | 1,390 |  |  | 996 |  |  | 459 |  |  | 464 |  |  |  |  |
All other | (1,198) |  |  | (291) |  |  | (76) |  |  | (119) |  |  |  |  |
Amortization of intangibles | (112) |  |  | (102) |  |  | (38) |  |  | (38) |  |  |  |  |
General corporate expenses | (173) |  |  | (427) |  |  | (57) |  |  | (92) |  |  |  |  |
Operating income | 8,248 |  |  | 8,359 |  |  | 3,230 |  |  | 3,152 |  |  |  |  |
Interest and other debt expense, net | 815 |  |  | 782 |  |  | 278 |  |  | 267 |  |  |  |  |
Net periodic benefit income, excluding service cost | (45) |  |  | (74) |  |  | (16) |  |  | (25) |  |  |  |  |
(Income) losses from investments in equity securities | (398) |  |  | (530) |  |  | (107) |  |  | (116) |  |  |  |  |
Gain on the sale of IQOS System commercialization rights | — |  |  | (2,700) |  |  | — |  |  | — |  |  |  |  |
Earnings before income taxes | $ | 7,876 |  |  | $ | 10,881 |  |  | $ | 3,075 |  |  | $ | 3,026 |  |  |  |  |
Smokeable products segment OCI consisted of the following, including expenses under the significant expense principle in accordance with GAAP:
| For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Net revenues | $ | 15,366 |  |  | $ | 15,941 |  |  | $ | 5,387 |  |  | $ | 5,540 |  |  |
Settlement charges (1) | (2,278) |  |  | (2,654) |  |  | (792) |  |  | (875) |  |  |
Excise taxes on products sold | (2,299) |  |  | (2,630) |  |  | (797) |  |  | (888) |  |  |
Other segment items (2) | (2,448) |  |  | (2,474) |  |  | (856) |  |  | (840) |  |  |
Operating companies income | $ | 8,341 |  |  | $ | 8,183 |  |  | $ | 2,942 |  |  | $ | 2,937 |  |  |
(1) Represents charges related to State Settlement Agreements included in cost of sales. For additional information, see Health Care Cost Recovery Litigation in Note 14. Contingencies. (2) Other segment items includes manufacturing, marketing, administration and research costs and FDA user fees. For the oral tobacco products segment, we did not identify any expenses under the significant expense principle in accordance with GAAP. Other segment items for our oral tobacco products segment include manufacturing, asset impairment, marketing, administration and research costs and excise taxes on products sold. Total oral tobacco products other segment items were $706 million and $1,088 million for the nine months ended September 30, 2025 and 2024, respectively, and $230 million and $258 million for the three months ended September 30, 2025 and 2024, respectively. The CODM reviews total oral tobacco products segment expenses in the aggregate in conjunction with the review of budget-to-actual OCI variances to manage segment operations. Details of our depreciation expense and capital expenditures were as follows:
| For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Depreciation expense: |  |  |  |  |  |  |  |  |
Smokeable products | $ | 44 |  |  | $ | 52 |  |  | $ | 15 |  |  | $ | 16 |  |  |
Oral tobacco products | 30 |  |  | 30 |  |  | 9 |  |  | 9 |  |  |
General corporate and other | 26 |  |  | 29 |  |  | 8 |  |  | 11 |  |  |
Total depreciation expense | $ | 100 |  |  | $ | 111 |  |  | $ | 32 |  |  | $ | 36 |  |  |
Capital expenditures: |  |  |  |  |  |  |  |  |
Smokeable products | $ | 57 |  |  | $ | 38 |  |  | $ | 27 |  |  | $ | 11 |  |  |
Oral tobacco products | 42 |  |  | 24 |  |  | 20 |  |  | 8 |  |  |
General corporate and other | 25 |  |  | 33 |  |  | 7 |  |  | 12 |  |  |
Total capital expenditures | $ | 124 |  |  | $ | 95 |  |  | $ | 54 |  |  | $ | 31 |  |  |
The comparability of OCI for our reportable segments was affected by the following: ▪Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded net pre-tax income for NPM adjustment items as follows:
|  | For the Nine Months Ended September 30, |  | For the Three Months Ended September 30,
(in millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Smokeable products segment |  | $ | (2) |  |  | $ | (29) |  |  | $ | (2) |  |  | $ | (23) |
Interest and other debt expense, net |  | — |  |  | 2 |  |  | — |  |  | 2 |
Total |  | $ | (2) |  |  | $ | (27) |  |  | $ | (2) |  |  | $ | (21) |
We recorded the amounts shown in the table above in our smokeable products segment 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 further discussion, see Health Care Cost Recovery Litigation in Note 14. Contingencies. ▪Asset Impairment, Exit and Implementation Costs: We recorded exit and implementation costs of $43 million and $13 million related to the Initiative for the nine and three months ended September 30, 2025, respectively. For a breakdown of these costs by segment, see Note 5. Exit and Implementation Costs. We recorded a non-cash, pre-tax impairment of the Skoal trademark of $354 million for the nine months ended September 30, 2024 in our oral tobacco products segment. For further discussion, see Note 4. Goodwill and Other Intangible Assets, net. ▪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) | 2025 |  | 2024 |  | 2025 |  | 2024
Smokeable products segment | $ | 44 |  |  | 59 |  |  | 4 |  |  | 21 |
General corporate expenses | — |  |  | 30 |  |  | (1) |  |  | — |
Interest and other debt expense, net | 4 |  |  | 1 |  |  | — |  |  | 1 |
Total | $ | 48 |  |  | $ | 90 |  |  | $ | 3 |  |  | $ | 22 |
We recorded the amounts shown in the table above in our 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 14. Contingencies.

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- 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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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