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Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At December 31, 2023 our reportable segments were (i) smokeable 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.
Our all other category included (i) the financial results of NJOY (beginning June 1, 2023); (ii) Horizon; (iii) Helix ROW; (iv) our former financial services business, which completed the wind-down of its portfolio of finance assets in 2022; and (v) the IQOS System heated tobacco business.
Prior to the sale of our wine business on October 1, 2021, wine produced and/or sold by Ste. Michelle was a reportable segment. For further discussion, see Note 1. Background and Basis of Presentation.
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. We do not disclose information about total assets by segment because such information is not reported to or used by our CODM. Substantially all of our long-lived assets were located in the United States at December 31, 2023. Segment goodwill and other intangible assets, net, are disclosed in Note 6. Goodwill and Other Intangible Assets, net. The accounting policies of the segments were the same at December 31, 2023 as those described in Note 2. Summary of Significant Accounting Policies.
Segment data were as follows:
 For the Years Ended December 31,
(in millions)202320222021
Net revenues:
Smokeable products$21,756 $22,476 $22,866 
Oral tobacco products2,667 2,580 2,608 
Wine— — 494 
All other60 40 45 
Net revenues$24,483 $25,096 $26,013 
Earnings before income taxes:
OCI:
Smokeable products$10,670 $10,688 $10,394 
Oral tobacco products1,722 1,632 1,659 
Wine— — 21 
All other(74)(36)(97)
Amortization of intangibles(128)(73)(72)
General corporate expenses(643)(292)(345)
Operating income11,547 11,919 11,560 
Interest and other debt expense, net
989 1,058 1,162 
Loss on early extinguishment of debt— — 649 
Net periodic benefit income, excluding service cost (127)(184)(202)
(Income) losses from investments in equity securities(243)3,641 5,979 
Loss on Cronos-related financial instruments— 15 148 
Earnings before income taxes$10,928 $7,389 $3,824 
The smokeable products segment included net revenues of $20,665 million, $21,457 million and $21,877 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to cigarettes and net revenues of $1,091 million, $1,019 million and $989 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to cigars.
Substantially all of our net revenues for the years ended December 31, 2023, 2022 and 2021 were from sales generated in the United States. PM USA, USSTC, Helix, Middleton and NJOY’s customer, Performance Food Group Company, accounted for approximately 25%, 24% and 23% of our consolidated net revenues for the years ended December 31, 2023, 2022 and 2021, respectively. In addition, McLane Company, Inc., accounted for approximately 23% of our consolidated net revenues for the years ended December 31, 2023, 2022 and 2021. Substantially all of these net revenues were reported in the smokeable products and oral tobacco products segments. No other customer accounted for more than 10% of our consolidated net revenues for the years ended December 31, 2023, 2022 and 2021.
Details of our depreciation expense and capital expenditures were as follows:
 For the Years Ended December 31,
(in millions)202320222021
Depreciation expense:
Smokeable products$73 $87 $80 
Oral tobacco products37 33 34 
Wine— — 27 
General corporate and other34 33 31 
Total depreciation expense$144 $153 $172 
Capital expenditures:
Smokeable products$77 $68 $48 
Oral tobacco products59 90 43 
Wine— — 12 
General corporate and other60 47 66 
Total capital expenditures$196 $205 $169 
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 as follows:
For the Years Ended December 31,
(in millions)202320222021
Smokeable products segment
$(29)$(63)$(53)
Interest and other debt expense, net
(21)(5)(23)
Total$(50)$(68)$(76)
We recorded the amounts in the table shown above for the smokeable products segment as reductions to cost of sales in our 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 additional information, see Health Care Cost Recovery Litigation in Note 19. 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 Years Ended December 31,
(in millions)202320222021
Smokeable products segment
$69 $101 $83 
General corporate expenses350 27 90 
Interest and other debt expense, net
11 3 9 
Total$430 $131 $182 
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 consolidated statements of earnings. For further discussion, see Note 19. Contingencies.
▪Ste. Michelle Transaction: We recorded pre-tax disposition-related costs of $51 million for the year ended December 31, 2021 in our former wine segment, which consisted of a pre-tax charge of $41 million to record the assets and liabilities associated with the Ste. Michelle Transaction at their fair value less costs to sell and $10 million of other disposition-related costs. We included these costs in marketing, administration and research costs in our consolidated statements of earnings.
▪Acquisition-Related Costs: We recorded pre-tax acquisition-related costs of $37 million for the year ended December 31, 2021 in our oral tobacco products segment primarily for the settlement of an arbitration related to the 2019 on! transaction. We included these costs in marketing, administration and research costs in our consolidated statements of earnings.