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Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At June 30, 2024, our reportable segments were (i) smokeable products, consisting of combustible cigarettes and machine-made large cigars; and (ii) oral tobacco products, consisting of MST, snus and oral nicotine pouches.
Our all other category included (i) NJOY (beginning June 1, 2023); (ii) Horizon; (iii) Helix International; and (iv) other business activities, all of which consists of research and development (“R&D”) expense related to certain new product platforms and technologies.
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, 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.
Segment data were as follows:
For the Six Months Ended June 30,For the Three Months Ended June 30,
(in millions)2024202320242023
Net revenues:
Smokeable products$10,401 $10,910 $5,495 $5,820 
Oral tobacco products1,362 1,308 711 680 
All other22 9 3 8 
Net revenues$11,785 $12,227 $6,209 $6,508 
Earnings before income taxes:
OCI:
Smokeable products$5,246 $5,349 $2,807 $2,846 
Oral tobacco products532 859 97 443 
All other(172)(13)(111)(4)
Amortization of intangibles(64)(45)(37)(27)
General corporate expenses(335)(488)(223)(353)
Operating income5,207 5,662 2,533 2,905 
Interest and other debt expense, net515 486 261 257 
Net periodic benefit income, excluding service cost(49)(62)(25)(31)
(Income) losses from investments in equity securities(414)(47)(119)(127)
Gain on the sale of IQOS System commercialization rights
(2,700)— (2,700)— 
Earnings before income taxes$7,855 $5,285 $5,116 $2,806 
The comparability of OCI for our reportable segments was affected by the following:
▪Asset Impairment: We recorded a non-cash, pre-tax impairment of the Skoal trademark of $354 million for the six and three months ended June 30, 2024 in our oral tobacco products segment. For further discussion, see Note 5. Goodwill and Other Intangible Assets, net.
▪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)2024202320242023
Smokeable products segment$38 $52 $20 $40 
General corporate expenses30 338 24 240 
Interest and other debt expense, net— 11 — 10 
Total$68 $401 $44 $290 
We recorded the amounts shown in the table above for our smokeable products segment and general corporate expenses in marketing, administration and research costs in our condensed consolidated statements of earnings. For further discussion, see Note 14. Contingencies.
▪Other Business Activities: Our R&D investments have evolved and shifted from our traditional tobacco businesses to new product platforms and technologies. Beginning January 1, 2024, our R&D expense is aligned with how our CODM now evaluates performance results and allocates resources for segment reporting. For the six and three months ended June 30, 2024, using this approach, we recorded the majority of our pre-tax R&D expense of $104 million and $53 million, respectively, in our all other category, which now includes other business activities related to R&D expense for certain new product platforms and technologies. For the six and three months ended June 30, 2023, the majority of our pre-tax R&D expense of $98 million and $55 million, respectively, was recorded in our smokeable products segment.