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Exit and Implementation Costs
 12 Months Ended
Dec. 31, 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 years ended December 31:
Exit Costs
Implementation Costs (1)
Total
(in millions)202520242025202420252024
Smokeable products segment$7 $31 $42 $29 $49 $60 
Oral tobacco products segment1 4 6 4 7 8 
Total$8 $35 $48 $33 $56 $68 
(1) Recorded in marketing, administration and research costs in our consolidated statements of earnings.
There were no exit or implementation costs for the year ended December 31, 2023.
In October 2024, we announced a multi-phase Optimize & Accelerate initiative (“Initiative”) designed to modernize our ways of working, which would enable us to increase our organization’s speed, efficiency and effectiveness by centralizing work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes.
During the fourth quarter of 2025, we updated the estimated total pre-tax charges to approximately $175 million from the previous estimate of approximately $125 million as a result of finalizing the plans for all phases of the Initiative. As of December 31, 2025, total pre-tax charges since the inception of the Initiative were $124 million, consisting of employee separation cost of $43 million and implementation costs of $81 million. We expect to record the majority of the remaining charges by the end of 2027. 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. We record employee separation costs when probable and reasonably estimable. As of December 31, 2025, total cash payments since the inception of the Initiative were $90 million, consisting of $18 million for exit costs and $72 million for implementation costs.
A summary of the charges and cash paid for exit and implementation costs related to the Initiative is as follows:
(in millions)Exit CostsImplementation CostsTotal
Balances at December 31, 2023$— $— $— 
Charges35 33 68 
Cash paid— (11)(11)
Balances at December 31, 202435 22 57 
Charges8 48 56 
Cash paid(18)(61)(79)
Balances at December 31, 2025$25 (1)$9 $34 
(1) Restructuring liabilities, all of which were severance liabilities.