Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Earnings (losses) before income taxes:
United States	$	7,628	$	4,239	$	6,842
Outside United States	(239)		(415)		48
Total	$	7,389	$	3,824	$	6,890
Provision (benefit) for income taxes:
Current:
Federal	$	1,968	$	1,965	$	2,025
State and local	603		542		553
Outside United States	1		2		22
	2,572		2,509		2,600
Deferred:
Federal	(893)		(1,190)		(130)
State and local	(54)		30		(34)
	(947)		(1,160)		(164)
Total provision for income taxes	$	1,625	$	1,349	$	2,436

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

	For the Years Ended December 31,
(in millions)	2022		2021		2020
Balance at beginning of year	$	53	$	74	$	64
Additions based on tax positions related to the current year	1		—		—
Additions for tax positions of prior years	16		40		12
Reductions for tax positions due to lapse of statutes of limitations	—		(5)		—
Reductions for tax positions of prior years	—		(23)		(2)
Tax settlements	(1)		(33)		—
Balance at end of year	$	69	$	53	$	74

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,
	2022				2021				2020
(dollars in millions)	$		%		$		%		$		%
U.S. federal statutory rate	$	1,552	21.0	%	$	803	21.0	%	$	1,447	21.0	%
Increase (decrease) resulting from:
State and local income taxes, net of federal tax benefit	435		5.9		451		11.8		410		6.0
Tax basis in foreign investments	11		0.1		25		0.7		23		0.3
Uncertain tax positions	—		—		(25)		(0.7)		9		0.1
Investment in ABI	(24)		(0.3)		(16)		(0.4)		3		0.1
Investment in JUUL	306		4.1		7		0.2		537		7.8
Investment in Cronos	30		0.4		128		3.3		20		0.3
Valuation allowance releases	(664)		(9.0)		(15)		(0.4)		(19)		(0.3)
Other	(21)		(0.2)		(9)		(0.2)		6		0.1
Effective tax rate	$	1,625	22.0	%	$	1,349	35.3	%	$	2,436	35.4	%

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)	2022		2021
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	303	$	387
Settlement charges	729		835
Investment in JUUL	3,001		2,652
Investment in Cronos	407		403
Net operating losses and tax credit carryforwards	31		46
Total deferred income tax assets	4,471		4,323
Deferred income tax liabilities:
Property, plant and equipment	(233)		(216)
Intangible assets	(2,849)		(2,802)
Investment in ABI	(1,226)		(1,695)
Finance assets, net	—		(29)
Accrued pension costs	(70)		(55)
Other	(115)		(94)
Total deferred income tax liabilities	(4,493)		(4,891)
Valuation allowances	(2,800)		(3,097)
Net deferred income tax liabilities	$	(2,822)	$	(3,665)

Summary of Valuation Allowance

A reconciliation of the beginning and ending valuation allowances was as follows:

	For the Years Ended December 31,
(in millions)	2022		2021		2020
Balance at beginning of year	$	3,097	$	2,817	$	2,324
Additions to valuation allowance charged to income tax expense	429		401		692
Reductions to valuation allowance credited to income tax benefit	(730)		(118)		(200)
Foreign currency translation	4		(3)		1
Balance at end of year	$	2,800	$	3,097	$	2,817