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Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At June 30, 2023 our reportable segments were smokeable products and oral tobacco products, which include (i) smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; and (ii) oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix.
The all other category included (i) the financial results of NJOY (beginning June 1, 2023); (ii) Helix ROW; (iii) our former financial services business, which completed the wind-down of its portfolio of finance assets in 2022; and (iv) the IQOS System heated tobacco business.
Our chief operating decision maker (“CODM”) reviews operating companies income (loss) (“OCI”) to evaluate the performance of, and allocate resources to, our segments. OCI for our segments is defined as operating income before general corporate expenses and amortization of intangibles. 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.
Segment data were as follows:
For the Six Months Ended June 30,For the Three Months Ended June 30,
(in millions)2023202220232022
Net revenues:
Smokeable products$10,910 $11,138 $5,820 $5,873 
Oral tobacco products1,308 1,278 680 665 
All other9 19 8 5 
Net revenues$12,227 $12,435 $6,508 $6,543 
Earnings before income taxes:
OCI:
Smokeable products$5,349 $5,321 $2,846 $2,762 
Oral tobacco products859 837 443 430 
All other(13)(20)(4)(15)
Amortization of intangibles(45)(35)(27)(18)
General corporate expenses(488)(114)(353)(54)
Operating income5,662 5,989 2,905 3,105 
Interest and other debt expense, net486 561 257 280 
Net periodic benefit income, excluding service cost(62)(93)(31)(47)
(Income) losses from investments in equity securities(47)1,229 (127)1,263 
Loss on Cronos-related financial instruments— 14 — 4 
Earnings before income taxes$5,285 $4,278 $2,806 $1,605 
The comparability of OCI for our reportable segments was affected by the following:
▪Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded pre-tax income for NPM adjustment items of $60 million for the six months ended June 30, 2022 in our smokeable products segment. We recorded these items as reductions to cost of sales in our condensed consolidated statement 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 (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation in Note 13. Contingencies).
▪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 Six Months Ended June 30,For the Three Months Ended June 30,
(in millions)2023202220232022
Smokeable products segment$52 $50 $40 $38 
General corporate expenses338 7 240 7 
Interest and other debt expense, net11 1 10 1 
Total$401 $58 $290 $46 
We recorded the amounts shown in the table above for the 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 13. Contingencies.