v3.26.3
Exit and Implementation Costs (Tables)
 9 Months Ended
Sep. 30, 2026
Restructuring and Related Activities [Abstract]  
Pre-tax Asset Impairment, Exit, and Implementation Costs
Pre-tax exit and implementation costs consisted of the following:
Exit CostsImplementation CostsExit CostsImplementation Costs
For the Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions)20262025
2026 (1)
2025 (3)
20262025
2026 (2)
2025 (3)
USSTC Facilities Consolidation:
Oral tobacco products segment$21 $— $66 $— $2 $— $7 $— 
Optimize & Accelerate initiative:
Smokeable products segment3 3 14 35 1 2 2 10 
Oral tobacco products segment— — 2 5 — — — 1 
Total Optimize & Accelerate initiative
3 3 16 40 1 2 2 11 
Total$24 $3 $82 $40 $3 $2 $9 $11 
Amounts are recorded in our condensed consolidated statements of earnings as follows:
(1) Cost of sales ($66 million) and marketing, administration and research costs ($16 million).
(2) Cost of sales ($7 million) and marketing, administration and research costs ($2 million).
(3) Marketing, administration and research costs.
Schedule of Restructuring Reserve by Type of Cost
The movement in liabilities related to exit and implementation costs is as follows:
(in millions)Exit CostsImplementation CostsTotal
Balances at December 31, 2024$35 $22 $57 
Charges8 48 56 
Cash paid(18)(61)(79)
Balances at December 31, 202525 9 34 
Charges (1)
24 19 43 
Cash paid(17)(23)(40)
Balances at September 30, 2026$32 (2)$5 $37 
(1) Implementation costs exclude non-cash asset-related charges associated with the USSTC Facilities Consolidation discussed below.
(2) Represents liabilities for employee separation costs and other exit costs.