For the nine months and three months ended September 30, 2026, PMI recorded total pre-tax restructuring charges of $34 million and $4 million, respectively. For the nine months ended September 30, 2025, PMI recorded total pre-tax restructuring

charges of $243 million. For the three months ended September 30, 2025, PMI did not record any charges related to restructuring activities. The pre-tax charges were included in marketing, administration and research costs in the condensed consolidated statements of earnings. As discussed in Note 8. Segment Reporting, marketing, administration and research costs, including restructuring charges, are not allocated to segments to determine the primary measure of segment profitability.

In the first quarter of 2026, the PMI U.S. organization announced a series of footprint optimization initiatives under the Further Integration Program (“FIP”). These initiatives include the planned closure of the Richmond office and the transition of certain roles and capabilities to strategic U.S. locations, primarily the newly established Business Solutions Center (“BSC”) in Tampa, Florida, and the PMI U.S. headquarters in Stamford, Connecticut. The program also includes the closure of the cigar manufacturing facility in Dothan, Alabama and the consolidation of its cigar production operations into PMI’s manufacturing footprint in the Dominican Republic.

As a result of these actions, PMI recorded pre‑tax restructuring charges of $34 million and $4 million for the nine months and three months ended September 30, 2026, respectively. These charges primarily included employee separation and other employee related costs of $29 million, and asset impairment charges of $5 million for the nine months ended September 30, 2026.

In October 2026, PMI initiated a project to optimize the operations of its wellness business unit, Aspeya. As part of this initiative, operations related to certain product lines are expected to transition to an asset-light operating model, primarily through joint ventures and other partnership arrangements. PMI is currently evaluating the total costs associated with the restructuring project, which are expected to be incurred in the fourth quarter of 2026 and the first half of 2027. In addition, the transition to a partnership-based operating model may result in revisions to the financial projections for the wellness business unit, which could result in an impairment of goodwill. For further details related to goodwill attributed to the wellness reporting unit, see Note 5. Goodwill and Other Intangible Assets, net.

As a result of declining demand for cigarettes and other combustible tobacco products in Europe, two of PMI’s German subsidiaries, Philip Morris Manufacturing GmbH and F6 Cigarettenfabrik GmbH & Co. KG, initiated consultations with employee representatives on October 29, 2024, on a proposal to end production in the factories located in Berlin and in Dresden by the end of the second quarter of 2025, and to seek to agree on fair solutions for any impacted employees.

The consultation processes for both of these factories were concluded in April 2025, and as a result of the closure PMI recorded pre-tax restructuring charges of $243 million in the second quarter of 2025. This amount included pension and employee separation costs of $127 million and contract termination and other costs of $24 million, which were paid in cash, as well as asset impairment costs of $92 million, primarily related to property lease, and machinery and equipment, which were non-cash charges.