Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

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)	2025		2024		2023
Earnings (losses) before income taxes:
United States	$	9,382	$	13,680	$	10,971
Outside United States	7		(22)		(43)
Total	$	9,389	$	13,658	$	10,928
Provision (benefit) for income taxes:
Current:
Federal	$	2,348	$	927	$	2,346
State and local	410		516		681
Outside United States	—		—		1
	2,758		1,443		3,028
Deferred:
Federal	(259)		764		(133)
State and local	(57)		187		(97)
	(316)		951		(230)
Total provision for income taxes	$	2,442	$	2,394	$	2,798

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

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

	For the Years Ended December 31,
(in millions)	2025		2024		2023
Balance at beginning of year	$	282	$	1,608	$	69
Additions based on tax positions related to the current year	21		—		1,548
Additions for tax positions of prior years	304		33		—
Reductions for tax positions related to IRS Agreement	—		(1,343)		—
Reductions for tax positions of prior years	(21)		(16)		(6)
Tax settlements	(1)		—		(3)
Balance at end of year	$	585	$	282	$	1,608

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,
	2025				2024 (1)				2023 (1)
(dollars in millions)	$		%		$		%		$		%
Provision computed at U.S. federal statutory rate	$	1,972	21.0	%	$	2,868	21.0	%	$	2,295	21.0	%
Increase (decrease) resulting from:
Domestic state and local taxes, net of federal effect (2)	278		3.0		557		4.1		463		4.2
Foreign tax effects	(10)		(0.1)		3		—		11		0.1
Cross-border tax laws	3		—		(46)		(0.4)		(2)		—
Tax credits	(39)		(0.4)		(31)		(0.2)		(25)		(0.2)
Changes in valuation allowance	91		1.0		(939)		(6.9)		57		0.5
Nontaxable or nondeductible items
Nondeductible goodwill	243		2.6		—		—		—		—
Other	8		—		(3)		—		(9)		(0.1)
Worldwide changes in unrecognized tax benefits	(104)		(1.1)		(15)		(0.1)		8		0.1
Effective tax rate	$	2,442	26.0	%	$	2,394	17.5	%	$	2,798	25.6	%

(1) As discussed in Note 1. Background and Basis of Presentation, we retrospectively adopted ASU No. 2023-09. As a result, 2024 and 2023 amounts are now presented in categories in accordance with ASU No. 2023-09.

(2) State taxes in Pennsylvania, Virginia, New Jersey, California, Michigan, Tennessee, Illinois, Indiana and Kentucky make up greater than 50% of the total tax effect in this category for 2025. State taxes in Pennsylvania, California, Virginia, New Jersey, Illinois, Kentucky, Michigan, Alabama and Georgia make up greater than 50% of the total tax effect in this category for 2024. State taxes in Pennsylvania, California, Illinois, New Jersey, Virginia, Kentucky, Michigan, Alabama and Florida make up greater than 50% of the total tax effect in this category for 2023.

Schedule of Income before Income Tax, Domestic and Foreign

Cash taxes paid, net of refunds, consisted of the following:

	For the Years Ended December 31,
(in millions)	2025		2024		2023
Federal	$	1,340	$	1,161	$	1,219
State and local	354		547		654
Outside United States	1		1		1
Total	$	1,695	$	1,709	$	1,874

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)	2025		2024
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	264	$	270
Settlement charges	520		585
JUUL-related losses	290		207
Investment in Cronos	410		404
Research and development costs	14		112
Net operating losses and tax credit carryforwards	146		224
Total deferred income tax assets	1,644		1,802
Deferred income tax liabilities:
Property, plant and equipment	(231)		(235)
Intangible assets	(2,747)		(3,032)
Investment in ABI	(1,085)		(1,370)
Accrued pension costs	(126)		(108)
Other	(35)		(133)
Total deferred income tax liabilities	(4,224)		(4,878)
Valuation allowances	(779)		(668)
Net deferred income tax liabilities	$	(3,359)	$	(3,744)

Summary of Valuation Allowance

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

	For the Years Ended December 31,
(in millions)	2025		2024		2023
Balance at beginning of year	$	668	$	2,256	$	2,800
Additions to valuation allowance charged to income tax expense	124		244		114
Reductions to valuation allowance credited to income tax benefit	(15)		(1,337)		(6)
(Reductions) additions to valuation allowance due to NJOY Transaction (no impact to earnings)	—		(4)		12
Reductions to valuation allowance offset to deferred tax asset (no impact to earnings)	—		(491)		(663)
Foreign currency translation	2		—		(1)
Balance at end of year	$	779	$	668	$	2,256