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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Our products include smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; and oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. These products constitute our reportable segments of smokeable products and oral tobacco products at September 30, 2022. The financial services and the innovative tobacco products businesses, which include the heated tobacco business and Helix ROW, are included in all other.
Prior to the sale of our wine business on October 1, 2021, wine produced and/or sold by Ste. Michelle was a reportable segment.
Our chief operating decision maker (“CODM”) reviews operating companies income (loss) (“OCI”) to evaluate the performance of, and allocate resources to, our segments. OCI for our segments is defined as operating income before general corporate expenses and amortization of intangibles. Interest and other debt expense, net, along with net periodic benefit
income/cost, excluding service cost, and provision (benefit) 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.
Segment data were as follows:
For the Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions)2022202120222021
Net Revenues:
Smokeable products$17,020 $17,275 $5,882 $5,975 
Oral tobacco products1,948 1,945 670 626 
Wine— 494 — 177 
All other17 44 (2)8 
Net revenues$18,985 $19,758 $6,550 $6,786 
Earnings (losses) before Income Taxes:
OCI:
Smokeable products$8,112 $7,901 $2,791 $2,753 
Oral tobacco products1,262 1,269 425 405 
Wine— 21 — (24)
All other(27)(56)(7)(30)
Amortization of intangibles(54)(53)(19)(18)
General corporate expenses(192)(255)(78)(135)
Operating income9,101 8,827 3,112 2,951 
Interest and other debt expense, net832 869 271 266 
Loss on early extinguishment of debt— 649 — — 
Net periodic benefit income, excluding service cost(137)(152)(44)(63)
(Income) losses from investments in equity securities3,707 5,789 2,478 5,915 
(Gain) loss on Cronos-related financial instruments14 128 — 135 
Earnings (losses) before income taxes$4,685 $1,544 $407 $(3,302)
The comparability of OCI for our reportable segments was affected by the following:
▪Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded pre-tax (income) for NPM adjustment items as follows:
For the Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions)2022202120222021
Smokeable products segment$(60)$(53)$— $(21)
Interest and other debt expense, net— (23)— (23)
Total$(60)$(76)$— $(44)
We recorded the amounts in the table shown above for the smokeable products segment as reductions in cost of sales in our condensed consolidated statements of earnings (losses), which increased OCI in our smokeable products segment. NPM adjustment items result from the resolutions of certain disputes with states and territories related to the NPM adjustment provision under the Master Settlement Agreement (such dispute resolutions are referred to as “NPM Adjustment Items” and are more fully described in Health Care Cost Recovery Litigation in Note 11. Contingencies).
▪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 Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions)2022202120222021
Smokeable products segment$71 $72 $21 $29 
General corporate expenses27 70 20 70 
Interest and other debt expense, net3 6 2 6 
Total$101 $148 $43 $105 
We recorded the amounts shown in the table above for the smokeable products segment and general corporate expenses in marketing, administration and research costs in our condensed consolidated statements of earnings (losses). For further discussion, see Note 11. Contingencies.
▪Acquisition and Disposition-Related Costs:
Disposition-Related Costs: We recorded pre-tax disposition-related costs of $51 million for the nine and three months ended September 30, 2021 in our former wine segment, which consisted of a pre-tax charge of $41 million to record the assets and liabilities associated with UST’s sale of its subsidiary, International Wine & Spirits Ltd. (which included Ste. Michelle), at their fair value less costs to sell and $10 million of other disposition-related costs. We included these costs in marketing, administration and research costs in our consolidated statements of earnings (losses).
Acquisition-Related Costs: We recorded pre-tax acquisition-related costs of $37 million for the nine months ended September 30, 2021 in our oral tobacco products segment primarily for the settlement of an arbitration related to the 2019 on! transaction. We included these costs in marketing, administration and research costs in our condensed consolidated statements of earnings (losses).