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Exit and Implementation Costs | 9 Months Ended
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Sep. 30, 2025
Restructuring and Related Activities [Abstract] |
Exit and Implementation Costs | Exit and Implementation Costs Pre-tax exit and implementation costs consisted of the following:
| For the Nine Months Ended September 30, 2025 |  |  |  | For the Three Months Ended September 30, 2025 |  |
(in millions) | Exit Costs |  | Implementation Costs (1) |  | Exit Costs |  | Implementation Costs (1)
Smokeable products segment | $ | 3 |  |  |  |  | $ | 35 |  |  |  |  | $ | 2 |  |  |  |  | $ | 10 |  |  |
Oral tobacco products segment | — |  |  |  |  | 5 |  |  |  |  | — |  |  |  |  | 1 |  |  |
Total | $ | 3 |  |  |  |  | $ | 40 |  |  |  |  | $ | 2 |  |  |  |  | $ | 11 |  |  |
(1) Recorded in marketing, administration and research costs in our condensed consolidated statement of earnings. There were no exit or implementation costs for the nine months ended September 30, 2024. In October 2024, we announced a multi-phase Optimize & Accelerate initiative (“Initiative”) designed to modernize our ways of working. Through the Initiative, we plan to increase our organization’s speed, efficiency and effectiveness by centralizing work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes. We expect the design and detailed plans for all phases of the Initiative to be substantially complete in early 2026. We estimate total pre-tax charges for the Initiative’s currently planned phases to be approximately $125 million. As of September 30, 2025, total pre-tax charges since the inception of the Initiative were $111 million, consisting of employee separation cost of $38 million and implementation costs of $73 million. All of these charges result in cash expenditures and consist of severance payments associated with employee separations, implementation costs for new technology and business advisory services and other costs. Employee separation costs are recorded when probable and reasonably estimable. As we further develop and finalize detailed plans for the additional phases of the Initiative, we will update estimated pre-tax charges for the Initiative. As of September 30, 2025, total cash payments since the inception of the Initiative were $74 million, consisting of $12 million for exit costs and $62 million for implementation costs. A summary of the Initiative’s charges and cash paid for exit and implementation costs is as follows:
(in millions) |  | Exit Costs |  |  |  | Implementation Costs |  | Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balances at December 31, 2023 |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charges |  | 35 |  |  |  |  | 33 |  |  | 68 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash paid |  | — |  |  |  |  | (11) |  |  | (11) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balances at December 31, 2024 |  | 35 |  |  |  |  | 22 |  |  | 57 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charges |  | 3 |  |  |  |  | 40 |  |  | 43 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash paid |  | (12) |  |  |  |  | (51) |  |  | (63) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balances at September 30, 2025 |  | $ | 26 |  |  |  | (1) | $ | 11 |  |  | $ | 37 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) Restructuring liabilities, all of which were severance liabilities.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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