v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At June 30, 2026, our reportable segments were (i) smokeable products, consisting of combustible cigarettes and machine-made large cigars; and (ii) oral tobacco products, consisting of MST products and oral nicotine pouches.
For the year ended December 31, 2025, we concluded that our e-vapor products operating segment met the quantitative threshold for presentation as a reportable segment in accordance with Accounting Standards Codification 280, Segment Reporting (“ASC 280”), as a result of the non-cash impairments of e-vapor reporting unit goodwill and related definite-lived intangible assets recorded in 2025. For further discussion of non-cash impairments, see Note 2. Goodwill and Other Intangible Assets, net. As a result, in our 2025 Form 10-K, we presented e-vapor products as a reportable segment (previously in our all other category) and recast segment information for comparative periods. During the first quarter of 2026, we concluded that the e-vapor products operating segment was not expected to be of continuing significance and did not meet the quantitative thresholds as prescribed under ASC 280 for separate reportable segments. As such, the e-vapor products operating segment is no longer considered a reportable segment, and we included the e-vapor products operating segment results in our all other category for all periods presented.
At June 30, 2026, our all other category included (i) e-vapor products, consisting of our NJOY business; (ii) Horizon; (iii) Helix International; and (iv) other business activities, which primarily consists of research and development (“R&D”) expense related to certain new product platforms and technologies.
Altria’s Chief Executive Officer is our chief operating decision maker (“CODM”). Our measure of segment profitability is segment operating companies income (loss) (“OCI”), which is defined as operating income before general corporate expenses and amortization of intangibles. Our CODM uses OCI for planning, forecasting and evaluating business and financial performance of the segments, including allocating capital and other resources to our segments and evaluating results relative to employee compensation targets. 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. Segment goodwill and other intangible assets, net, are disclosed in Note 2. Goodwill and Other Intangible Assets, net.
Segment data were as follows:
For the Six Months Ended June 30,For the Three Months Ended June 30,
(in millions)2026202520262025
Net revenues:
Smokeable products$10,150 $9,979 $5,392 $5,357 
Oral tobacco products1,382 1,407 713 753 
All other7 (25)6 (8)
Net revenues$11,539 $11,361 $6,111 $6,102 
Earnings before income taxes:
OCI:
Smokeable products$5,615 $5,399 $2,942 $2,930 
Oral tobacco products816 931 381 498 
All other(153)(1,122)(77)(108)
Amortization of intangibles(46)(74)(23)(37)
General corporate expenses(140)(116)(87)(53)
Operating income6,092 5,018 3,136 3,230 
Interest and other debt expense, net553 537 295 275 
Net periodic benefit income, excluding service cost(4)(29)(1)(15)
(Income) losses from investments in equity securities(245)(291)(87)(148)
Earnings before income taxes$5,788 $4,801 $2,929 $3,118 
Smokeable products segment OCI consisted of the following, including expenses under the significant expense principle in accordance with GAAP:
For the Six Months Ended June 30,For the Three Months Ended June 30,
(in millions)2026202520262025
Net revenues$10,150 $9,979 $5,392 $5,357 
Settlement charges (1)
(1,453)(1,486)(785)(799)
Excise taxes on products sold(1,380)(1,502)(732)(787)
Other segment items (2)
(1,702)(1,592)(933)(841)
Operating companies income$5,615 $5,399 $2,942 $2,930 
(1) Represents charges related to State Settlement Agreements included in cost of sales. For additional information, see Health Care Cost Recovery Litigation in Note 12. Contingencies.
(2) Other segment items includes manufacturing, marketing, administration and research costs, FDA user fees and other costs.
For the oral tobacco products segment, we did not identify any expenses under the significant expense principle in accordance with GAAP. Other segment items for our oral tobacco products segment include manufacturing, marketing, administration and research costs and excise taxes on products sold. Total oral tobacco products other segment items were $566 million and $476 million for the six months ended June 30, 2026 and 2025, respectively, and $332 million and $255 million for the three months ended June 30, 2026 and 2025, respectively. The CODM reviews total oral tobacco products segment expenses in the aggregate in conjunction with the review of budget-to-actual OCI variances to manage segment operations.
Details of our depreciation expense and capital expenditures were as follows:
 For the Six Months Ended June 30,For the Three Months Ended June 30,
(in millions)2026202520262025
Depreciation expense:
Smokeable products$27 $29 $14 $14 
Oral tobacco products22 21 11 11 
General corporate and other17 18 8 9 
Total depreciation expense$66 $68 $33 $34 
Capital expenditures:
Smokeable products$81 $30 $29 $12 
Oral tobacco products52 22 18 9 
General corporate and other17 18 10 11 
Total capital expenditures$150 $70 $57 $32 
The comparability of OCI for our reportable segments was affected by the following:
▪Exit and Implementation Costs: We recorded exit and implementation costs of $94 million and $30 million for the six months ended June 30, 2026 and 2025, respectively, and $88 million and $15 million for the three months ended June 30, 2026 and 2025, respectively. For further discussion and a breakdown of these costs by segment, see Note 3. Exit and Implementation Costs.
▪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)2026202520262025
Smokeable products segment$69 $40 $67 $4 
General corporate expenses— 1 — 1 
Interest and other debt expense, net
24 4 24 — 
Total$93 $45 $91 $5 
We recorded the amounts shown in the table above in our smokeable products segment in marketing, administration and research costs in our condensed consolidated statements of earnings. For further discussion, see Note 12. Contingencies.