Altria Group

Altria Group, Inc. 
Annual Report
2024 
From tobacco company
To tobacco harm reduction company.

William F. Gifford, Jr., Chief Executive Officer
Kathryn B. McQuade, Chair of the Board
 For important factors that may cause actual results to differ materially from those contained in the forward-looking statements included herein, see Item 1A. 
Risk Factors in Part I of the enclosed Annual Report on Form 10-K. 
* For explanations and reconciliations of adjusted measures to corresponding GAAP financial measures used herein, see Item 7. Management’s Discussion 
and Analysis of Financial Condition and Results of Operations in Part II of the enclosed Annual Report on Form 10-K.
D E A R  F E L LO W  S H A R E H O L D E R S
2024 was another pivotal year for Altria. We made meaningful 
advancements towards our Vision, delivered strong financial 
performance and provided substantial returns to you, our valued 
shareholders. Our core tobacco businesses successfully executed 
their strategies in a challenging environment, and our smoke-free 
products continued their momentum in the marketplace. 
n  Progress Toward Our Vision.   The potential for tobacco 
harm reduction in the U.S. is significant. In 2024, our companies 
continued their efforts to position our smoke-free products for 
sustained success in the sizeable U.S. nicotine space. 
NJOY made significant progress in 2024, growing volume and 
share in a competitive pod segment. To improve availability, 
NJOY expanded distribution of NJOY ACE to over 100,000 stores 
and amplified visibility by securing premium positioning in more 
than 80% of contracted stores through NJOY’s first retail trade 
program. NJOY executed a variety of trial-generating activities 
and introduced a new brand equity campaign that resonated 
strongly with adult tobacco consumers. Despite challenges from 
patent litigation before the U.S. International Trade Commission, 
as discussed in the enclosed Annual Report on Form 10-K, and 
the growing illicit e-vapor marketplace, NJOY has demonstrated 
its ability to successfully build a brand and responsibly grow in the 
e-vapor category. NJOY is building a pipeline of products to meet 
evolving adult tobacco consumer preferences, and we believe 
NJOY’s proven capabilities will directly translate to our future 
e-vapor efforts. 
Helix continued to participate in the oral tobacco category 
growth, increasing on! reported shipment volume by more than 
40% to 160 million cans in 2024. on! retail share momentum 
continued as the brand reached 8.3% of the total U.S. oral tobacco 
category for full-year 2024. Notably, Helix achieved profitability for 
the first time in the fourth quarter, ahead of its 2025 goal. Outside 
of the U.S., we are encouraged by the steady momentum that  
on! PLUS is building at retail and on e-commerce within Sweden 
and the United Kingdom. 
In heated tobacco, our teams continued to advance our product 
pipeline. During 2024, we made progress toward a Premarket 
Tobacco Product Application and accelerated work on a Modified 
Risk Tobacco Product Application submission to the U.S. Food 
and Drug Administration (FDA) for Ploom through Horizon, our 
joint venture with JT Group. We expect to make a combined 
submission in the middle of this year. We also commenced a 
small-scale international test of SWIC, our internally developed 
heated tobacco capsule product, to gain adult tobacco consumer 
insights and further inform our heated tobacco strategy. 
Achieving our Vision and the full promise of tobacco harm 
reduction requires the entire industry operating within science-
based regulation, a variety of satisfying, FDA-authorized product 
choices for adult tobacco consumers and underage tobacco use 
continuing to decline or remaining low. Last year, we advocated 
for a responsible and well-regulated marketplace by calling 
on the FDA to prioritize innovation, increase the number and 
pace of product authorizations to expand the legal market of 
smoke-free products and take enforcement action against illicit 
e-vapor manufacturers, wholesalers and retailers. We encouraged 
regulators to use all available tools to enforce the regulatory 
framework and hold rule breakers accountable. Once regulation is 
functioning as intended, we believe Altria has the experience and 
capabilities to make significant progress toward our Vision. 
n  Resilient Traditional Tobacco Businesses.   Our traditional 
businesses delivered solid financial performance in 2024. The 
smokeable products segment grew its adjusted operating 
companies income (OCI) to $10.9* billion and expanded adjusted 
OCI margins nearly 2 percentage points to 61.6%*. Marlboro 
performance was resilient, and its share of the premium segment 
expanded to 59.3% for full-year 2024.
Our oral tobacco products segment financials remained strong, 
driven by Copenhagen, the leader in MST. In 2024, the oral 
tobacco products segment reported higher adjusted OCI and 
OCI margins. Adjusted OCI grew 5.2%* and adjusted OCI margins 
expanded to an impressive 67.8%*. 
n  Strong Financial Performance and Significant Cash 
Returns to Shareholders.   We grew full-year adjusted diluted 
earnings per share by 3.4%,* and we continued our long history 
of rewarding shareholders by returning over $10.2 billion through 
dividends and share repurchases combined. Our Board of 
Directors raised the dividend for the 59th time in 55 years, and we 
completed our $3.4 billion share repurchase program funded, in 
part, by the partial sale of our investment in Anheuser-Busch InBev 
SA/NV, representing our largest single-year share repurchase in 
over two decades.
n   Looking Forward.   We continue to believe Altria is well 
positioned to responsibly lead the transition of adult smokers to 
a smoke-free future. The tobacco harm reduction opportunity 
remains in front of us, and we believe we have the right strategies 
to make it a reality. Those strategies, together with the strength of 
our traditional tobacco businesses and talented employees, give 
me confidence that we can achieve our Vision.
Thank you, as always, for your ongoing support of Altria. 
March 21, 2025

Title of each class
Trading Symbols
Name of each exchange on which registered
Common Stock, $0.33  1/3 par value
MO
New York Stock Exchange
1.700% Notes due 2025
MO25
New York Stock Exchange
2.200% Notes due 2027
MO27
New York Stock Exchange
3.125% Notes due 2031
MO31
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:  None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.           þ Yes  ¨ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.        ¨ Yes    þ No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.   þ Yes     ¨   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of 
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such 
files).     þ Yes   ¨ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or 
emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth 
company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
þ
Accelerated filer
☐
Non-accelerated filer 
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any 
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal 
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that 
prepared or issued its audit report. ☑ 
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the 
filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation 
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     ☐ Yes    þ No
Class                           
Outstanding at February 14, 2025
Common Stock, $0.33  1/3 par value
 
1,690,661,641 shares
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
FORM 10-K
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the fiscal year ended December 31, 2024 
OR 
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from                     to                      
Commission File Number 1-08940
ALTRIA GROUP, INC.
(Exact name of registrant as specified in its charter)
804-274-2200
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Virginia
13-3260245
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
6601 West Broad Street, 
Richmond, Virginia
23230
(Address of principal executive offices)
(Zip Code)
Portions of the registrant’s definitive proxy statement for use in connection with its annual meeting of shareholders to be held on 
May 15, 2025, to be filed with the U.S. Securities and Exchange Commission on or about April 3, 2025, are incorporated by 
reference into Part III hereof.
As of June 28, 2024, the last business day of the registrant’s most recently completed second fiscal quarter, the aggregate market value of the 
registrant’s common stock held by non-affiliates of the registrant was approximately $78 billion based on the closing sale price of the common stock as 
reported on the New York Stock Exchange.
DOCUMENTS INCORPORATED BY REFERENCE 

TABLE OF CONTENTS
Page
PART I
Item 1.
Business
1
Item 1A.
Risk Factors
5
Item 1B.
Unresolved Staff Comments
15
Item 1C.
Cybersecurity
15
Item 2.
Properties
17
Item 3.
Legal Proceedings
17
Item 4.
Mine Safety Disclosures
17
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of 
Equity Securities
18
Item 6.
[Reserved]
19
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
19
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
51
Item 8.
Financial Statements and Supplementary Data
52
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
106
Item 9A.
Controls and Procedures
106
Item 9B.
Other Information
106
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
106
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
106
Item 11.
Executive Compensation
107
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder 
Matters
107
Item 13.
Certain Relationships and Related Transactions, and Director Independence
107
Item 14.
Principal Accountant Fees and Services
107
PART IV
Item 15.
Exhibits and Financial Statement Schedules
108
Item 16.
Form 10-K Summary
111
Signatures
112
b

Part I
Item 1.  Business.
General Development of Business
When used in this Annual Report on Form 10-K (“Form 10-K”), the terms “Altria,” “we,” “us” and “our” refer to either (i) Altria 
Group, Inc. and its consolidated subsidiaries or (ii) Altria Group, Inc. only and not its consolidated subsidiaries, as appropriate in the 
context.
We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+.  Our Vision is to responsibly lead the transition of 
adult smokers to a smoke-free future (“Vision”).  We are Moving Beyond SmokingTM, leading the way in moving adult smokers away 
from cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for 
adult tobacco consumers, our businesses and society.
Our wholly owned subsidiaries include Philip Morris USA Inc. (“PM USA”), which is engaged in the manufacture and sale of cigarettes 
in the United States; John Middleton Co. (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and 
is a wholly owned subsidiary of PM USA; UST LLC (“UST”), which, through its wholly owned subsidiary U.S. Smokeless Tobacco 
Company LLC (“USSTC”), is engaged in the manufacture and sale of moist smokeless tobacco (“MST”) products;  Helix Innovations 
LLC (“Helix”), which operates in the United States, and its foreign affiliates (“Helix International”), which operate in certain other 
countries, are engaged in the manufacture and sale of oral nicotine pouches; and NJOY, LLC (“NJOY”), which is engaged in the 
manufacture and sale of e-vapor products.  Other wholly owned subsidiaries include Altria Group Distribution Company (“AGDC”), 
which provides sales and distribution services to our domestic operating companies, and Altria Client Services LLC (“ALCS”), which 
provides various support services to our companies in areas such as legal, regulatory, research and product development, consumer 
engagement, finance, human resources and external affairs.
On June 1, 2023, we completed our acquisition of NJOY Holdings, Inc. (“NJOY Holdings”), the parent of NJOY (“NJOY Transaction”). 
As a result of the acquisition, NJOY became a wholly owned subsidiary of Altria.  For further details, see Note 3. Acquisition of NJOY 
to our consolidated financial statements in Item 8. Financial Statements and Supplementary Data of this Form 10-K (“Item 8”).
In October 2022, we entered into a joint venture with JTI (US) Holding, Inc. (“JTIUH”), a subsidiary of Japan Tobacco Inc. (“Japan 
Tobacco”), for the U.S. marketing and commercialization of heated tobacco stick (“HTS”) products.  The joint venture entity, Horizon 
Innovations LLC (“Horizon”), is structured to exist in perpetuity and is responsible for the U.S. commercialization of HTS products 
owned by either party.  We own a 75% economic interest in Horizon with JTIUH owning a 25% economic interest.  Horizon is governed 
by a board of managers, which is comprised of four individuals designated by PM USA and three individuals designated by JTIUH.  For 
further information, see Other Tobacco Products below.
At December 31, 2024, our reportable segments were smokeable products and oral tobacco products.  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 expense related to certain new product platforms and technologies.  For further information, see Note 17. Segment 
Reporting to our consolidated financial statements in Item 8. (“Note 17”).
Our investments include Anheuser-Busch InBev SA/NV (“ABI”) and Cronos Group Inc. (“Cronos”), which we account for under the 
equity method of accounting using a one-quarter lag.
In March 2024, we sold a portion of our investment in ABI (“ABI Transaction”).  We used the proceeds from the sale to fund the 
repurchase of our common stock through accelerated share repurchase (“ASR”) transactions.  In March 2023, we entered into a stock 
transfer agreement with JUUL Labs, Inc (“JUUL”) pursuant to which we transferred to JUUL all of our beneficially owned JUUL equity 
securities.  For further information on our current and former investments, the ABI Transaction and the ASR transactions, see Note 8. 
Investments in Equity Securities to our consolidated financial statements in Item 8 (“Note 8”) and Note 12. Capital Stock to our 
consolidated financial statements in Item 8 (“Note 12”), respectively.
Description of Business
Portions of the information relating to this Item are included in Operating Results by Business Segment in Item 7. Management’s 
Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K (“Item 7”).
Our operating companies include PM USA, Middleton, USSTC, Helix and NJOY.
The products of our operating companies include: (i) smokeable tobacco products, consisting of combustible cigarettes manufactured 
and sold by PM USA and machine-made large cigars manufactured and sold by Middleton; (ii) oral tobacco products, consisting of MST 
products manufactured and sold by USSTC and oral nicotine pouches manufactured and sold by Helix; and (iii) e-vapor products 
manufactured and sold by NJOY.
▪
Cigarettes: PM USA is the largest cigarette company in the United States and substantially all cigarettes are manufactured and
sold to customers in the United States.  Marlboro, the principal cigarette brand of PM USA, has been the largest-selling cigarette brand
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in the United States for 50 years.  Total smokeable products segment’s cigarettes shipment volume in the United States was 68.6 billion 
units in 2024, a decrease of 10.2% from 2023.
▪
Cigars: Middleton is engaged in the manufacture and sale of machine-made large cigars.  Middleton contracts with a third-
party importer to supply substantially all of its cigars and sells substantially all of its cigars to customers in the United States.  Black &
Mild is the principal cigar brand of Middleton.  Total smokeable products segment’s cigars shipment volume was approximately
1.8 billion units in 2024, a decrease of 1.5% from 2023.
▪
Oral tobacco products: USSTC is the leading producer and marketer of MST products.  The oral tobacco products segment
includes the premium brands, Copenhagen and Skoal, and a value brand, Red Seal, sold by USSTC.  In addition, the oral tobacco
products segment includes on! oral nicotine pouches sold by Helix.  Substantially all of the oral tobacco products are manufactured and
sold to customers in the United States.  Total oral tobacco products segment’s shipment volume was 774.7 million units in 2024, a
decrease of 1.0% from 2023.
▪
E-Vapor products: NJOY contracts with third-party importers to supply all of its products and sells its e-vapor products to
customers in the United States.  NJOY ACE is the principal e-vapor product of NJOY.  NJOY’s commercialized product portfolio of
tobacco and menthol e-vapor products is fully covered by marketing granted orders (“MGO”) from the U.S. Food and Drug
Administration (“FDA”).
▪
Other tobacco products: In connection with the joint venture agreement with JTIUH, Horizon will market and commercialize
HTS products, which are defined in the joint venture agreement as products that include both (i) a tobacco heating device intended to
heat the consumable without combusting and (ii) a consumable that meets the definition of a cigarette under the U.S. Federal Cigarette
Labeling and Advertising Act.  Horizon is responsible for the U.S. commercialization of current and future HTS products owned by
either party and, upon authorization by the FDA of a pre-market tobacco application (“PMTA”), will become the exclusive entity
through which the parties market and commercialize HTS products in the United States.  Upon PMTA authorization of Ploom HTS
products, JTIUH will supply Ploom HTS devices and PM USA will manufacture Marlboro HTS consumables for U.S.
commercialization.  As of February 26, 2025, there are no products in the U.S. marketplace from the joint venture.
On April 30, 2024, we assigned the exclusive U.S. commercialization rights to the IQOS Tobacco Heating System (“IQOS System”) to 
Philip Morris International Inc. (“PMI”) pursuant to the terms of a purchase agreement entered into with PMI in October 2022.  For 
further discussion of the agreement with PMI see Note 6. Goodwill and Other Intangible Assets, net to our consolidated financial 
statements in Item 8 (“Note 6”).
▪
Distribution, Competition and Raw Materials: Our tobacco subsidiaries sell their tobacco products principally to wholesalers
(including distributors) and large retail organizations, including chain stores.
The market for tobacco products is highly competitive, characterized by brand recognition and loyalty, with product quality, taste, price, 
product innovation, marketing, packaging and distribution constituting the significant methods of competition.  Promotional activities 
include, in certain instances and where permitted by law, allowances, the distribution of incentive items, price promotions, product 
promotions, coupons and other discounts.
In the United States, under a contract growing program, PM USA purchases the majority of its burley and flue-cured leaf tobaccos 
directly from domestic tobacco growers.  Under the terms of this program, PM USA agrees to purchase the amount of tobacco specified 
in the grower contracts that meets PM USA’s grade and quality standards.  PM USA also purchases a portion of its tobacco requirements 
through leaf merchants.
USSTC purchases dark fire-cured, dark air-cured and burley leaf tobaccos from domestic tobacco growers under a contract growing 
program.  Under the terms of this program, USSTC agrees to purchase the amount of tobacco specified in the grower contracts that 
meets USSTC’s grade and quality standards.
Middleton purchases burley, dark air-cured and flue-cured leaf tobaccos through leaf merchants.  Middleton does not have a contract 
growing program.
Helix, through an affiliate, and NJOY purchase tobacco-derived nicotine materials from suppliers and believe their suppliers can satisfy 
current and anticipated future production requirements.
Our tobacco subsidiaries believe there is an adequate supply of tobacco in the world markets to satisfy their current and anticipated 
production requirements.
Other Matters
▪
Customers: For a discussion of our largest customers, including their percentages of our consolidated net revenues for the
years ended December 31, 2024, 2023 and 2022, see Note 17.
▪
Executive Officers of Altria: The disclosure regarding executive officers is included in Item 10. Directors, Executive Officers
and Corporate Governance - Information about Our Executive Officers as of February 14, 2025 of this Form 10-K.
2

▪
Human Capital Resources: We believe our workforce is critical to achieving our Vision.  Attracting, developing, retaining
and deploying the best talent with the skills to make significant progress toward our Vision is a key business priority.  Moreover, we
recognize the importance of doing business the right way.  We believe culture influences employee actions and decision making.  This is
why we dedicate resources to promoting a vibrant, inclusive workplace; attracting, developing, retaining and deploying talented
employees to build a high-performing and diverse talent pipeline; promoting a culture of compliance and integrity; creating a safe
workplace; and rewarding and recognizing employees for both the results they deliver and, importantly, how they deliver them.
Oversight and Management
Our Human Resources department is responsible for managing employment-related matters, including recruiting and hiring, onboarding, 
compensation and benefits design and implementation, performance management, career management and succession planning and 
professional and learning development.  Our inclusion, diversity and equity efforts are managed by our Corporate Citizenship 
department.  Our Board of Directors (“Board of Directors” or “Board”) and the Compensation and Talent Development Committee 
provide oversight of human capital matters, including reviewing initiatives and programs related to corporate culture and enterprise-wide 
talent development.
“Supporting our People and our Communities” is one of our Responsibility Focus Areas, which includes two goals related to developing 
a high-performing and diverse talent pipeline: (i) enhance the diversity of our organization and leadership teams while building an 
inclusive and equitable culture; and (ii) build employee capability and well-being to succeed in uncertain and rapidly changing 
environments.
Compensation and Benefits
Our compensation and benefits programs are designed to help us attract, retain and motivate strong talent.  However, we recognize that 
the decreasing social acceptance of tobacco usage may impact our ability to attract and retain talent with skills necessary for us to 
achieve our Vision.  We work to manage this risk by, among other things, targeting total compensation packages to be above peer 
companies with which we compete for talent.  Depending on employee level, total compensation includes different elements – base 
salary, annual cash incentives, long-term equity and cash incentives and benefits.
We are committed to pay equity across our companies.  Based on the most recent annual analysis we conducted in 2024, for employees 
performing the same or similar duties regardless of any differentiating factors, such as performance and tenure, salaries of our female 
employees were 98.2% of those of our male employees, and salaries of our employees of color were 98.2% of those of our white 
employees.  If we adjust for differentiating factors that legitimately influence pay, salaries of our female employees were 99.8% of those 
of our male employees, and salaries of our employees of color were 99.9% of those of our white employees.
In addition to cash and equity compensation, we offer generous employee benefits such as significant company contributions to deferred 
profit sharing plans, consumer-driven health plan coverage, vacation and holiday pay, disability and life insurance.  We also offer up to 
12 weeks paid family leave to bond with a newborn child, the placement of a child for adoption or foster care, or to care for a family 
member who has a serious health condition.  Our benefits also include physical, emotional and financial wellness programs and family 
creation assistance benefits, such as reimbursement of surrogacy, adoption assistance and doula expenses.  While there is some 
variability in employee benefits across our companies, the examples we provide are available to most employees.
We are also committed to investing in the educational development of our workforce through a tuition refund program for job-related 
courses or company-related degrees.  We also provide eligible employees with a company-funded contribution applied to the employee’s 
qualified higher education student loans to help reduce student loan debt.
Attracting, Developing, Retaining and Deploying Talent
We are focused on identifying the most qualified talent and investing in leader and employee development to build a diverse talent 
pipeline prepared and willing to lead at every level.  Additionally, we are dedicated to being an inclusive place to work for all 
employees, regardless of personal background or work function.  We recognize the critical importance of these efforts toward pursuing 
our Vision and believe in the value of a workforce composed of a broad and diverse spectrum of backgrounds, skills, experiences and 
cultures.
Our salaried entry-level recruitment efforts focus on building relationships with university students, internship opportunities and 
partnerships with organizations that support a broad range of students.  We complement these recruiting efforts with hiring experienced 
employees with demonstrated skills and/or leadership capabilities.
To help our employees succeed in their roles and develop in their careers, we emphasize ongoing training and leadership development 
opportunities.  Building skills that drive innovation and aligning our employees to our Vision is important for our long-term success.  
The Human Resources department leads our learning and development efforts partnering with learning professionals embedded in 
functions throughout our operating and services companies.  Employees have access to a wide variety of development programs, 
including new employee onboarding, in-person, virtual and self-guided training programs, technical training, including training to 
maintain professional certifications, and our educational refund program for continuing education.
3

We also have an employee recognition program that allows leaders and employees to reward and recognize colleagues for their 
outstanding performance and everyday excellence.
We regularly conduct confidential employee engagement surveys to seek feedback on a variety of topics, including employee 
satisfaction, support from leadership, corporate culture and culture of compliance.  In addition, in 2024, these quarterly employee 
surveys sought feedback on topics such as workplace flexibility, workload, inclusion, equal opportunity, development opportunities, 
management support, compliance and understanding of business strategy.  Survey results, including comparisons to prior results, are 
shared with our employees and our Board and are used to modify or enhance our human capital management programs.
We also monitor our progress toward building a diverse organization through various metrics, including comparisons to external 
benchmarks, and report workforce data annually.  Our data-driven efforts focus on removing barriers to equal opportunity in compliance 
with applicable law.
Work Modernization
As part of our multi-phase Optimize & Accelerate initiative (“Initiative”), we plan to increase our organization’s speed, efficiency and 
effectiveness by centralizing work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes.  
Our Accelerated Business Solutions (“ABS”) organization will be responsible for driving efficiency and process improvement across our 
companies in partnership with external service providers.  We are implementing organizational design changes to support our enhanced 
business processes.  In addition, we are supporting the workforce with change management plans at the enterprise and function levels.  
For additional information, see Our Business in Item 7.
Workplace Safety
Our goal is for every employee to experience an injury-free career, which is supported by our Safety Management System (“SMS”).  We 
strive for continuous improvement in our employee safety program through SMS infrastructure.  Our Occupational Safety and Health 
Administration recordable injury rate for 2024 was 1.8% (versus 1.2% for 2023) and remains below the benchmark for companies in the 
U.S. Beverage and Tobacco Product Manufacturing industry classification.
Number of Employees and Labor Relations
At December 31, 2024, we employed approximately 6,200 people.  Twenty-six percent of our employees were hourly manufacturing 
employees who are members of labor unions subject to collective bargaining agreements.  We believe we engage and collaborate 
effectively with our hourly employees, as demonstrated by the positive working relationship between our companies and the unions.  We 
also have long-term agreements that resolve any collective bargaining dispute through binding arbitration, which further demonstrates 
our trust-based relationship with the unions.
Supply Chain Human Capital Matters
We support efforts to address human capital concerns in the tobacco supply chain.  For example, in our domestic tobacco supply chain, 
in 2024, all of our domestic tobacco growers participated in the Good Agricultural Practices Certification Program to assess growers’ 
compliance with practices related to labor management and all of our tobacco suppliers participated in the tobacco industry’s Sustainable 
Tobacco Program, which includes standards related to human and labor rights.  Our tobacco companies also establish contract terms and 
conditions with tobacco growers and leaf suppliers addressing child and forced labor and conduct social compliance audits at leaf 
supplier facilities in high-risk tobacco growing regions within the United States and internationally.  In addition, all suppliers of goods 
and services that maintain operations in high-risk countries are subject to social compliance audits of those operations.
More information about efforts discussed in this section can be found in our Corporate Responsibility Reports at www.altria.com/ under 
Responsibility.
▪
Intellectual Property: Trademarks are of material importance to us and are protected by registration or otherwise.  In addition,
as of December 31, 2024, the portfolio of United States patents owned by our businesses, as a whole, was material to us and our
businesses.  However, no one patent or group of related patents was material to our businesses as of December 31, 2024.  Our businesses
also have proprietary trade secrets, technology, know-how, processes and other intellectual property rights that are protected by
appropriate confidentiality measures.  Certain trade secrets are material to us and our businesses.
▪
Government Regulations: We are subject to various federal, state and local laws and regulations.  For example, the Family
Smoking Prevention and Tobacco Control Act (“FSPTCA”) provides the FDA with broad authority to regulate the design, manufacture,
packaging, advertising, promotion, sale and distribution of tobacco products; the authority to require disclosures of related information;
and the authority to enforce the FSPTCA and related regulations.  For further discussion of laws and regulations impacting our operating
companies, see Operating Results by Business Segment - Business Environment in Item 7.
We and our subsidiaries (and former subsidiaries) are also subject to various federal, state and local laws and regulations concerning the 
discharge of materials into the environment, or otherwise related to environmental protection, including, in the United States: the Clean 
Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, 
Compensation and Liability Act (commonly known as “Superfund”), which can impose joint and several liability on each responsible 
4

party.  Altria and our former subsidiaries are involved in several matters subjecting them to potential costs of remediation and natural 
resource damages under Superfund or other laws and regulations.  Our subsidiaries expect to continue to make capital and other 
expenditures in connection with environmental laws and regulations.  In the opinion of our management, however, compliance with 
environmental laws and regulations, including the payment of any remediation costs or damages and related expenditures, has not had, 
and is not expected to have, a material adverse effect on our business, results of operations, capital expenditures, financial position or 
cash flows.
For further discussion of the foregoing matters, the business environment, trends in market demand and competitive conditions, and 
related risks, see Item 1A. Risk Factors of this Form 10-K (“Item 1A”) and Critical Accounting Estimates and Operating Results by 
Business Segment - Business Environment in Item 7.
Available Information
We are required to file annual, quarterly and current reports, proxy statements and other information with the U.S. Securities and 
Exchange Commission (“SEC”).  The SEC maintains an Internet website at www.sec.gov that contains reports, proxy and information 
statements, and other information regarding issuers from which investors can electronically access our SEC filings.
We make available free of charge on or through our website (www.altria.com) our Form 10-K, Quarterly Reports on Form 10-Q, Current 
Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange 
Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we electronically file such material with, or furnish it 
to, the SEC.  Investors can access our filings with the SEC by visiting www.altria.com/secfilings.
The information on our respective websites is not, and shall not be deemed to be, a part of this Form 10-K or incorporated into any other 
filings we make with the SEC.
Item 1A.  Risk Factors.
Our business is subject to various risks and uncertainties that are difficult to predict, may materially affect actual results and are often 
outside of our control.  We identify a number of these risks and uncertainties below.  You should read the following risk factors carefully 
in connection with evaluating our business and the forward-looking statements contained in this Form 10-K.
This Form 10-K contains statements concerning our expectations, plans, objectives, future financial performance and other statements 
that are not historical facts.  You can identify these forward-looking statements by our use of words such as “strategy,” “expects,” 
“continues,” “plans,” “anticipates,” “believes,” “will,” “estimates,” “forecasts,” “intends,” “projects,” “goals,” “objectives,” “guidance,” 
“targets” and other words of similar meaning.  You can also identify them by the fact that they do not relate strictly to historical or 
current facts.
We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans, 
estimates and assumptions.  Achievement of future results is subject to risks, uncertainties and assumptions that may prove to be 
inaccurate.  If risks or uncertainties materialize, or if underlying estimates or assumptions prove inaccurate, actual results could differ 
materially from those anticipated.  You should bear this in mind as you consider forward-looking statements and whether to invest in or 
remain invested in our securities.  Under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we 
identify important factors that, individually or in the aggregate, could cause actual results and outcomes, including with respect to our 
ability to achieve our Vision, to differ materially from those contained in, or implied by, any forward-looking statements we make.  We 
elaborate on these important factors and the risks we face throughout this Form 10-K, particularly in the “Executive Summary” and 
“Business Environment” sections preceding our discussion of the operating results of our segments in Item 7.  You should understand 
that it is not possible to predict or identify all factors and risks.  Consequently, you should not consider the foregoing list to be complete.  
We do not undertake to update any forward-looking statement that we may make from time to time except as required by applicable law.
Risks Relating to Our Business
Business Operations Risks
We may be unsuccessful in anticipating and responding to changes in adult tobacco consumer preferences and purchase 
behavior, including as a result of difficult economic conditions, which could have a material adverse effect on our business, 
results of operations, cash flows or financial position.
Our operating companies’ portfolios of tobacco products are largely comprised of premium brands, such as Marlboro, Copenhagen and 
Skoal.  The willingness of adult tobacco consumers to purchase premium brands is affected by macroeconomic conditions, including 
inflation and overall economic stability.  In periods of economic uncertainty and high inflation, we have observed that adult tobacco 
consumers reduce consumption, purchase more discount brands and consider lower-priced tobacco products, increasing the market share 
of competitive discount products.
In addition, as adult tobacco consumer preferences evolve, consumers are increasingly moving across tobacco categories, including 
selecting different categories of tobacco products than those they traditionally purchase and purchasing illicit flavored e-vapor products. 
5

The primary impacts of these conditions include higher than expected domestic cigarette industry volume declines and declines in pod-
based product volume within the e-vapor category, which have negatively impacted our business.
If our operating companies are unable to take actions to mitigate the effects of inflationary pressures and other factors that contribute to 
their products’ industry volume decline rates, it could negatively impact our business, results of operations, cash flows or financial 
position.  For example, the inability of our operating companies to sufficiently increase the prices of their premium products to offset 
volume declines from consumers down-trading to lower-priced competitive brands or moving across tobacco categories could have a 
material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision.
Furthermore, our ability to effectively respond to new and evolving adult tobacco consumer purchase behavior catalyzed by challenging 
macroeconomic conditions and changes in adult tobacco consumer preferences depends on our ability to promote brand equity 
successfully among our premium and discount brands and broaden our product portfolios across price-points and categories, including 
by bringing to market new and innovative tobacco products that appeal to adult tobacco consumers.  Our failure to do so or our failure to 
anticipate changing adult tobacco consumer preferences, improve productivity or protect or enhance margins through cost savings and 
price increases, could have a material adverse effect on our business, results of operations, cash flows or financial position.
We face significant competition, and our failure to compete effectively could have a material adverse effect on our business, 
results of operations, cash flows or financial position and our ability to achieve our Vision.
Our operating companies operate in highly competitive environments.  Significant competition exists with respect to product quality, 
taste, price, product innovation, marketing, packaging, distribution and promotional activities.  Because many of our operating 
companies’ products are market leaders, we are subject to antitrust risk.  In addition, as adult tobacco consumer preferences evolve, 
consumers are increasingly moving across tobacco categories.  Our operating companies’ failure to compete effectively in these 
environments could negatively impact their profitability, market share and shipment volume.
The growth of innovative tobacco products, including legal and illicit e-vapor products and oral nicotine pouches, has contributed to 
reductions in the consumption levels and industry sales volumes of cigarettes and other tobacco products, including MST products.  
These reductions have negatively impacted our business.  Furthermore, the proliferation of illicit flavored disposable e-vapor products 
has negatively impacted the growth of pod-based e-vapor products, including NJOY.  If we are unable to compete effectively in 
innovative tobacco product categories, including through internal product development, on! oral nicotine pouch products, NJOY e-vapor 
products, our participation in Horizon, other potential future partnerships with Japan Tobacco and potential future relationships and 
investments, such inability could have a material adverse impact on our business, results of operations, cash flows or financial position 
and our ability to achieve our Vision.
The competitive environments in which our operating companies compete and our operating companies’ competitive positions can be 
significantly influenced by the price differentials between premium and discount brands.  PM USA faces competition from lower-priced 
brands sold by certain United States and foreign manufacturers that have cost advantages because they are not parties to settlements of 
certain healthcare cost recovery litigation in the United States and, as such, are not required to make annual settlement payments as 
required by the parties to the settlements.  These settlement payments, which are inflation-adjusted, are significant for PM USA and have 
contributed to substantial cigarette price increases to help cover their cost.  Manufacturers not party to the settlements are subject to state 
escrow legislation requiring escrow deposits.  Such manufacturers may avoid these escrow obligations by concentrating on certain states 
where escrow deposits are not required or are required on fewer than all such manufacturers’ cigarettes sold in such states.  Additional 
competition has resulted from diversion into the United States market of cigarettes intended for sale outside the United States, diversion 
of tobacco products intended for sale in one taxing jurisdiction within the United States into another taxing jurisdiction, the sale of 
counterfeit cigarettes by third parties, the sale of cigarettes by third parties over the Internet and by other means designed to avoid 
collection of applicable taxes and imports of foreign lower-priced brands.  Competition may also result from tax advantages available to 
companies with significant imports and exports of finished goods.  Our failure to compete with lower-priced brands and counter the 
impacts of illicit trade in tobacco products could have a material adverse effect on our business, results of operations, cash flows or 
financial position.
We may be unsuccessful in commercializing innovative products, including tobacco products with reduced health risks relative 
to certain other tobacco products and that appeal to adult tobacco consumers, which may have a material adverse effect on our 
business, results of operations, cash flows or financial position and our ability to achieve our Vision.
We have growth strategies involving innovative products that may have reduced health risks relative to certain other tobacco products, 
while continuing to offer adult tobacco consumers (within and outside the United States) products that meet their taste expectations and 
evolving preferences.  These strategies include e-vapor, heated tobacco and oral nicotine pouch products.  For example, we have plans to 
commercialize next generation on! and NJOY products once regulatory authorizations are received.  If the outcome of any legal 
proceedings or investigations involving NJOY prevent us from, or we are otherwise unsuccessful in, executing these strategies, there 
could be a material negative impact on our business and our ability to achieve our Vision.  For example, in January 2025, in a patent 
lawsuit adjudicated before the U.S. International Trade Commission (“ITC”), the ITC imposed bans on the importation of NJOY ACE 
into the United States and the sale and marketing of NJOY ACE products previously imported into the United States.  The ITC’s decision 
to impose these restrictions is currently under a 60-day review by the Office of the U.S. Trade Representative, which could approve or 
6

reject the ITC’s decision.  If the Office of the U.S. Trade Representative does not reject the ITC’s decision, the restrictions will take 
effect on March 31, 2025 or earlier if the Trade Representative notifies the ITC of approval before the 60 days elapse.
The success of Horizon, our joint venture with JTIUH for the marketing and commercialization of HTS products in the United States, in 
generating new revenue streams by commercializing current and future HTS products owned by us or Japan Tobacco is dependent upon 
a number of factors.  These factors include (i) receipt of regulatory authorizations, (ii) prevailing economic, market, regulatory or 
business conditions, or changes in such conditions, negatively affecting the parties or their plans for future collaboration and 
partnerships, (iii) changes in market or other conditions resulting in unanticipated delays in the design and development of future 
products or the commencement of test launches, (iv) the outcome of any legal proceedings or investigations that may be instituted 
against the parties or others related to the joint venture, (v) changes in the preferences of U.S. adult tobacco consumers, (vi) the failure to 
meet commercialization milestones and (vii) the ability of the parties to enter into future partnerships on terms acceptable to both parties 
and in the expected manner or timeframe, if at all.  Such factors could have a negative effect on our ability to generate new revenue 
streams and enter new geographic markets.
Lengthy and unpredictable regulatory review periods complicate efforts to strategize and plan with respect to commercialization of new 
products, and we cannot predict or influence the speed with which the FDA reviews PMTAs.  For example, a protracted FDA review of 
one of our operating companies’ PMTAs would allow competitive products already on the market to establish market share, brand 
recognition and adult tobacco consumer loyalty in the absence of competition from our product.  If we do not succeed in 
commercializing innovative tobacco products that appeal to adult tobacco consumers or we fail to obtain or maintain regulatory 
authorization for the marketing or sale of these products, including with claims of reduced health risks, we could be at a competitive 
disadvantage, which could have a material adverse effect on our business, results of operations, cash flows or financial position and our 
ability to achieve our Vision.
Our inability to successfully counter the effects of illicit trade in tobacco products, including e-vapor products, could have a 
material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our 
Vision.
Illicit trade in tobacco products has had, and could continue to have, an adverse impact on our business, including the sales volumes and 
market shares of our operating companies’ innovative and smoke-free products and traditional tobacco products.  Illicit trade can take 
many forms, including the sale of counterfeit tobacco products; the sale of tobacco products that do not comply with the FSPTCA and 
FDA regulations; the sale of tobacco products in the United States that are intended for sale outside the country; the sale of untaxed 
tobacco products over the Internet and by other means designed to avoid the collection of applicable taxes; and the diversion into one 
taxing jurisdiction of tobacco products intended for sale in another jurisdiction.  Counterfeit versions of our operating companies’ 
products can negatively affect adult tobacco consumer experiences with and opinions of those brands as well as other stakeholders’ 
perceptions and opinions of our companies and brands.  Illicit trade in tobacco products also harms law-abiding wholesalers and retailers 
by depriving them of lawful sales and undermines the significant investment we have made in legitimate distribution channels. 
Moreover, illicit trade in tobacco products results in federal, state and local governments losing tax revenues.  Losses in tax revenues can 
cause such governments to take various actions, including increasing excise taxes, imposing legislative or regulatory requirements, or 
asserting claims against manufacturers of tobacco products or members of the trade channels through which such tobacco products are 
legally distributed and sold, each of which could have an adverse effect on our business, results of operations, cash flows or financial 
position.
In the e-vapor category, illicit flavored disposable product usage has significantly increased, and such products now comprise the 
majority of the e-vapor category.  The impacts of this dynamic include declines in pod-based e-vapor product volume and increased 
cross-category movement among adult cigarette smokers that has contributed to higher than expected domestic cigarette industry volume 
declines.  Recent enforcement actions by regulatory agencies have not had a material impact in curbing the proliferation and sale of 
illicit disposable e-vapor products.  This dynamic has made the operating environment challenging for our businesses.  We have 
increased engagement with the FDA and other government agencies to encourage enforcement action against these illicit products, but 
such enforcement has been inadequate to date.  We also have taken legal action to protect our lawful e-vapor business, which exposes us 
to additional costs and expenses.  Our failure to counter the impacts of illicit flavored disposable e-vapor products and the FDA’s failure 
to take meaningful enforcement actions against manufacturers and products that violate the law could have a material adverse effect on 
our business, results of operations, cash flows or financial position and our ability to achieve our Vision.
Failure to complete or manage strategic transactions, including acquisitions, dispositions, joint ventures and investments in third 
parties, or realize the anticipated benefits of such transactions, could have a material adverse effect on our business, financial 
position and our ability to achieve our Vision.
We regularly evaluate potential strategic transactions, including acquisitions, dispositions, joint ventures and investments in third parties. 
Opportunities for strategic transactions may be limited, and the success of any such transaction is dependent upon our ability to complete 
and realize the expected benefits of the transaction in the expected time frame or at all.  Following the completion of a transaction there 
may be certain financial, managerial, staffing and talent and operational risks, including diversion of management’s attention from 
existing core businesses, difficulties integrating other businesses into existing operations and other challenges presented by a transaction 
7

that does not achieve anticipated sales levels and profitability.  We may not be able to enter into attractive business relationships or 
execute and complete strategic transactions on favorable terms or at all, and any such relationships or transactions may not improve our 
competitive position or have the intended financial outcomes.  For example, our former investment in JUUL did not result in and, to 
date, our investment in Cronos has not, resulted in the economic and competitive advantages expected at the time the investments were 
made.
We may not be able to realize the expected benefits of the NJOY Transaction in the expected manner or timeframe, if at all, including 
due to failure to receive or maintain regulatory authorizations, changes in adult tobacco consumer preferences, failure to comply with 
regulatory requirements, prevailing economic, market, regulatory or business conditions, or changes in such conditions negatively 
affecting our business and our plans with respect to the e-vapor category, the outcome of any current or future legal proceeding or 
investigation related to the NJOY Transaction or NJOY or its products and the occurrence of any event requiring us to write down the 
value of NJOY’s goodwill or intangible assets, or both, due to impairment.  For example, in January 2025, in a patent lawsuit 
adjudicated before the ITC, the ITC imposed a ban on the importation of NJOY ACE into the United States and the sale and marketing of 
NJOY ACE products previously imported into the United States.  If the ban on the importation into the United States and the sale and 
marketing of NJOY ACE becomes effective, it could have a material adverse effect on our ability to realize the anticipated benefits of the 
NJOY Transaction.
If the NJOY Transaction or any other acquisition, disposition, joint venture, investment in a third party or other strategic relationship is 
not successful, there could be a material negative impact on our business, financial position and results of operations and our ability to 
achieve our Vision.
Significant changes in price, availability or quality of tobacco, other raw materials or component parts could have a material 
adverse effect on our profitability and business.
Shifts in crops (such as those driven by macroeconomic conditions and adverse weather patterns), government restrictions and mandated 
prices, production control programs, economic trade sanctions, import duties and tariffs, international trade disruptions, labor 
disruptions, inflation, geopolitical instability, climate and environmental changes and disruptions due to man-made or natural disasters 
may increase the cost or reduce the supply or quality of tobacco and other raw materials, ingredients and component parts used to 
manufacture our products.  Any significant change in such factors could restrict our ability to continue manufacturing and marketing 
existing products or impact adult tobacco consumer product acceptability and have a material adverse effect on our business and 
profitability.
For varieties of tobacco only available in limited geographies, government-mandated prices and production control programs, political 
instability or government prohibitions on the import or export of tobacco in certain countries pose additional risks to price, availability 
and quality.  As consumer demand increases for innovative smoke-free products and decreases for combustible and MST products, the 
volume of tobacco leaf required for production of these products has decreased, resulting in reduced tobacco leaf demand.  Reduced 
demand for tobacco leaf may result in the reduced supply and availability of domestic tobacco and increased costs, as growers divert 
resources to other crops or cease farming.  Macroeconomic factors, such as tariffs, may exacerbate reductions in demand for tobacco leaf 
by increasing the cost of purchasing tobacco leaf from a supplier in another country.  The unavailability or unacceptability of any one or 
more particular varieties of tobacco leaf or the unavailability of nicotine extract necessary to manufacture our operating companies’ 
products could negatively impact our ability to continue marketing existing products or impact adult tobacco consumer product 
acceptability, which could have a material adverse effect on our business and profitability.  In addition, the nicotine used in our operating 
companies’ innovative smoke-free products is extracted from tobacco produced in one country.  If we are unable to identify alternate 
sources of nicotine for our operating companies’ innovative products, we could be exposed to the risks discussed above.
Current geopolitical and macroeconomic conditions (including tariffs, inflation, high interest rates, labor shortages, supply and demand 
imbalances and international armed conflicts) are causing worldwide disruptions and delays to supply chains and commercial markets, 
which limit access to, and increase the cost of, raw materials, ingredients and component parts (for example, wood tips used in our cigar 
products and aluminum used in our packaging).  As consumer demand increases for innovative smoke-free products and decreases for 
combustible and MST products, the volume of raw materials, ingredients and component parts required for the production of these 
products has decreased.  Reduced demand for raw materials, ingredients and component parts may reduce supply and availability and 
increase the cost of raw materials, ingredients and component parts as suppliers divert resources to other products or cease producing 
these products.  Furthermore, challenging economic conditions can create the risk that our suppliers, distributors, logistics providers or 
other third-party partners suffer financial or operational difficulties, which may impact their ability to provide us with or distribute 
finished product, raw materials and component parts and services in a timely manner or at all.  If we are unable to identify alternate 
sources of raw materials, ingredients and component parts for our operating companies’ products, we could be exposed to supply risk.
In addition, government taxes, restrictions and prohibitions on the sale and use of certain products may limit access to, and increase the 
costs of, raw materials and component parts and, potentially, impede our ability to sell certain of our products.  For example, certain 
states have passed extended producer responsibility legislation concerning packaging.  Because certain of our products’ packaging 
consists of single-use plastics, single-use plastic bans and extended producer responsibility mandates could result in bans on some of our 
product packaging or our products and adversely impact our costs and revenues.  Additional taxes and limitations on the use of certain 
8

single-use plastics have been proposed by the U.S. Congress and various state and local governments.  These existing and potential 
future laws and regulations could increase the costs of, and impair our ability to, source certain materials used in the packaging for our 
products.
If we are unable to compensate for supply shortages or elevated commodity and other costs through sustained price increases, cost 
efficiencies, such as in manufacturing and distribution, or otherwise manage the exposure through sourcing strategies, the limited use of 
commodity hedging contracts or through other initiatives, our business, results of operations, cash flows and financial condition could be 
materially adversely impacted.
Our operating companies rely on a few significant facilities and a small number of key suppliers, distributors and distribution 
chain service providers, and an extended disruption at a facility or in service by a supplier, distributor or distribution chain 
service provider could have a material adverse effect on our business, results of operations, cash flows or financial position.
Our operating companies face risks inherent in reliance on a few significant manufacturing facilities and a small number of key 
suppliers, distributors and distribution chain service providers.  A natural or man-made disaster, cybersecurity incident, global pandemic, 
labor disruption or other disruption that affects the manufacturing operations of any of our operating companies, the operations of any 
key supplier, distributor or distribution chain service provider of any of our operating companies or any other disruption in the supply or 
distribution of goods or services (including a key supplier’s inability to comply with government regulations, lack of available workers 
or unwillingness to supply goods or services to a tobacco company) could adversely impact operations.  Operations of our operating 
companies, suppliers, distributors and distribution chain service providers could be suspended temporarily once or multiple times, or 
halted permanently, depending on various factors.  An extended disruption in operations experienced by one or more of our operating 
companies or in the supply or distribution of goods or services by one or more key suppliers, distributors or distribution chain service 
providers, could have a material adverse effect on our business, results of operations, cash flows or financial position.
We may be required to write down goodwill and intangible assets, including trademarks and intellectual property, due to 
impairment, which could have a material adverse effect on our results of operations or financial position.
We periodically calculate the fair value of our reporting units and intangible assets to test for impairment.  This calculation may be 
affected by several factors, including general macroeconomic conditions, the proliferation of illicit products, government actions, 
including FDA regulatory actions and inaction, changes in category growth (decline) rates as a result of changing adult tobacco 
consumer preferences, success of planned new product expansions, competitive activity, unfavorable outcomes with respect to litigation 
proceedings, including actions brought against us alleging patent infringement, and income and excise taxes.  Certain events also can 
trigger an immediate review of intangible assets.
For example, we recorded an impairment on the value of the Skoal trademark in the second quarter of 2024.  The impairment was the 
result of the decrease in the fair value of the Skoal trademark caused by decreases in the size of the MST products category, which were 
due, in part, to the growth of nicotine pouch volumes.  We continue to monitor several factors that impact the fair value of the Skoal 
trademark.  For example, if Skoal’s actual revenue and income or long-term outlook are significantly different from forecasted 
performance used to estimate the fair value or if the discount rate used to estimate the fair value increases, we could have an additional 
non-cash impairment on the carrying value of the Skoal trademark in future periods.
We monitor several factors that could impact the carrying value of our e-vapor reporting unit’s goodwill and related definite-lived 
intangible assets.  Increasing sales of illicit flavored disposable e-vapor products and the lack of meaningful enforcement against these 
products have negatively impacted the volume growth of NJOY’s pod-based e-vapor products.  Additionally, in January 2025, in a 
patent lawsuit adjudicated before the ITC, the ITC imposed bans on the importation of NJOY ACE into the United States and the sale and 
marketing of NJOY ACE products previously imported into the United States.  If the bans on the importation into the United States and 
the sale and marketing of NJOY ACE become effective or continued illicit e-vapor product sales or other factors result in a significantly 
unfavorable long-term outlook for NJOY’s volume growth rates versus our projections used to estimate the fair value, either 
development could result in a non-cash impairment of our e-vapor reporting unit’s goodwill or related definite-lived intangible assets, or 
both, in future periods.
If any impairment is determined to exist, we will incur impairment charges, which could have a material adverse effect on our results of 
operations or financial position.
Our Optimize & Accelerate initiative may expose us to increased risks relating to business continuity and our internal control 
over financial reporting and audit procedures, among others, which could have a material adverse impact on our business, cash 
flows, financial position or results of operations.
In October 2024, we announced the multi-phase Initiative, through which we plan to increase our organization’s speed, efficiency and 
effectiveness by centralizing work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes.
The Initiative presents a number of risks that could adversely impact our business, such as risks relating to operational continuity, talent 
management and internal control over financial reporting and audit procedures.  For example, we may experience a loss of continuity, 
loss of accumulated knowledge and inefficiency during transitional periods.  Furthermore, many of the tasks that will be outsourced will 
be performed in developing countries that may be at a heightened risk for geopolitical uncertainty, which could result in service 
9

interruptions.  The expected savings associated with the Initiative may be offset to some extent by business disruption during the 
implementation phase as well as investments in new processes and systems until such time as the Initiative is fully implemented.  The 
accelerated frequency and scale of new technology and systems deployment to support the Initiative may increase risks to our internal 
control framework, protection of sensitive data and regulatory compliance.  Additionally, the Initiative may lead to a loss of control and 
oversight of outsourced functions, which could weaken our existing internal control over financial reporting and present audit 
challenges.  If the vendors to whom we outsource certain tasks do not adhere to our financial controls and compliance processes and 
procedures, we could be at an increased risk for fraud and financial misstatements.
If actual results of the Initiative differ from our expectations with respect to the continuity and reliability of outsourced tasks, 
maintenance of internal control over financial reporting and audit procedures, we may experience an adverse impact on our business, 
results of operations or financial position.
We could decide, or be required to, recall products, which could have a material adverse effect on our business, reputation, 
results of operations, cash flows or financial position.
We could decide, or laws or regulations could require us, to recall products due to the failure to meet quality standards or specifications, 
suspected or confirmed and deliberate or unintentional product contamination, or other product adulteration, misbranding or tampering.  
A product recall or a product liability or other claim (even if unsuccessful or without merit) could have negative economic consequences 
and also generate negative publicity about us and our products.  In addition, if another company recalls or experiences negative publicity 
related to a product in a category in which we compete, adult tobacco consumers might reduce their overall consumption of products in 
the category.  Any of these events could have a material adverse effect on our business, reputation, results of operations, cash flows or 
financial position.
We face various risks related to health epidemics and pandemics, and such events, and the measures that international, federal, 
state and local governments, agencies, law enforcement and health authorities implement to address them, could have a material 
adverse effect on our business, results of operations, cash flows or financial position.
An epidemic, pandemic or other significant public health emergency, and the measures taken by governmental authorities to address it, 
could significantly disrupt our ability to operate our businesses in the ordinary course.  Furthermore, any associated economic 
consequences could have a material adverse effect on our business, results of operations, cash flows or financial position.
If any public health emergency were to occur in the future, we could experience negative impacts.  In addition, the specific 
characteristics of any future public health emergency and associated governmental responses could result in other negative impacts that 
we cannot foresee.  Accordingly, any future emergence or resurgence of an epidemic, pandemic or other public health emergency could 
have a material adverse effect on our business, results of operations, cash flows or financial position.
We may be unable to attract and retain a highly skilled workforce due to the decreasing social acceptance of tobacco usage, 
tobacco control actions and other factors, which could have a material adverse effect on our business and our ability to achieve 
our Vision.
Our ability to implement our strategy of attracting and retaining a highly skilled workforce may be impaired by the decreasing social 
acceptance of tobacco usage, tobacco regulation and control actions and other factors.  We compete for talent with the consumer 
products industry and other companies that may enjoy greater societal acceptance and fewer long-term challenges.  As a result, we may 
be unable to attract and retain highly qualified talent, which could have a material adverse effect on our business and our ability to 
achieve our Vision.
Litigation, Legislative and Regulatory Risks
Unfavorable outcomes with respect to litigation proceedings or any governmental investigations could materially adversely affect 
our results of operations, cash flows or financial position and our ability to achieve our Vision.
Legal proceedings covering a wide range of matters are pending or threatened in various U.S. and foreign jurisdictions against us and 
our subsidiaries, including PM USA, as well as our and their respective indemnitees and indemnitors.  Various types of claims may be 
raised in these proceedings, including product liability, unfair trade practices, antitrust, tax, contraband-related claims, patent 
infringement, employment matters, environmental matters, claims alleging violations of the Racketeer Influenced and Corrupt 
Organizations Act (“RICO”), claims for contribution and claims of competitors, shareholders and distributors.  Legislative action, such 
as changes to tort law, also may expand the types of claims and remedies available to plaintiffs.
Competitors and other third parties have brought and may in the future bring action against us, our subsidiaries and/or our suppliers 
alleging patent infringement.  Such claims, regardless of merit, expose us to significant litigation costs and damages, importation bans 
with respect to products and product components manufactured abroad, divert management’s attention and compromise our operating 
companies’ abilities to commercialize and improve their products.  This risk is especially pertinent to smoke-free products where 
technology continues advancing rapidly, resulting in a high volume of patents in relevant technology spaces.  In a patent lawsuit 
adjudicated before the ITC, the ITC banned the importation of IQOS devices, Marlboro HeatSticks and component parts into the United 
States and the sale and marketing of any such products previously imported into the United States.  As a result of the ITC’s decision, PM 
10

USA removed the IQOS devices, Marlboro HeatSticks and any infringing components from the marketplace.  We assigned the U.S. 
commercialization rights to the IQOS System to PMI in April 2024.  In a separate patent lawsuit brought by JUUL, the ITC imposed 
similar restrictions on NJOY ACE.  If the ban on the importation into the United States and the sale and marketing of NJOY ACE 
becomes effective, it could have a material adverse effect on our business, our valuation of NJOY’s assets and our plans with respect to 
the e-vapor category.
In certain litigation, we and our subsidiaries may face potentially significant non-monetary remedies in addition to importation bans that 
could have a material adverse effect on our businesses.  For example, in the Federal Government’s lawsuit alleging that certain 
defendants, including Altria and PM USA, violated RICO and engaged in certain “sub-schemes” to defraud, the district court did not 
impose monetary penalties but ordered significant non-monetary remedies, including the issuance of “corrective statements.”
Litigation is subject to significant uncertainty, and there could be adverse developments in pending or future cases.  An unfavorable 
outcome or settlement of pending tobacco-related or other litigation could encourage the commencement of additional litigation.  
Damages claimed in some tobacco-related or other litigation are significant and, in certain cases, have ranged in the billions of dollars. 
The variability in pleadings in multiple jurisdictions and the actual experience of management in litigating claims demonstrate that the 
monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome.
We have extensive experience litigating tobacco-related cases in a number of jurisdictions, with the vast majority of these cases having 
been filed in Florida.  However, in recent years, we have seen an increase in the number of these cases filed against PM USA in 
jurisdictions outside of Florida.  Managing complex litigation in multiple jurisdictions at an accelerated rate compounds the significant 
uncertainty as to the likelihood of adverse developments in pending or future cases.
In certain cases, plaintiffs claim that defendants’ liability is joint and several.  In such cases, we may face the risk that one or more co-
defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated 
share of a judgment.  As a result, we may have to pay more than our proportionate share of any bonding- or judgment-related amounts 
under certain circumstances.  Furthermore, in cases where plaintiffs are successful, we also may be required to pay interest and 
attorneys’ fees.
Although we historically have been able to obtain required bonds or relief from bonding requirements in order to prevent plaintiffs from 
seeking to collect judgments while adverse verdicts have been appealed, there remains a risk that such relief may not be obtainable in all 
cases.  This risk has been substantially reduced given that 47 states and Puerto Rico now limit the dollar amount of bonds or require no 
bond at all.  However, tobacco litigation plaintiffs have challenged the constitutionality of Florida’s bond cap statute in several cases and 
plaintiffs may challenge state bond cap statutes in other jurisdictions as well.  Such challenges may include the applicability of state 
bond caps in federal court.  Although we cannot predict the outcome of such challenges, it is possible that our business, results of 
operations, cash flows or financial position could be materially adversely affected in a particular fiscal quarter or fiscal year by an 
unfavorable outcome of one or more such challenges.
Each of Altria and our subsidiaries named as a defendant in pending litigation believes, and each has been so advised by counsel 
handling the respective cases, that it has valid defenses to the litigation pending against it, as well as valid bases for appeal of adverse 
verdicts.
We have defended, and will continue to defend, vigorously against litigation challenges.  However, we may enter into settlement 
discussions in particular cases if we believe it is in our best interests to do so.
We cannot predict the outcome of any litigation proceedings or governmental investigations, and unfavorable outcomes in any such 
proceedings or investigations could materially adversely affect our results of operations, cash flows or financial position.
Significant federal, state and local governmental actions, including FDA regulatory actions and inaction, and various private 
sector actions may continue to have a material adverse impact on our operating companies’ sales volumes and our business.
We face significant governmental and private sector actions, including efforts aimed at reducing the incidence of tobacco use and 
seeking to hold us responsible for the adverse health effects associated with both smoking and exposure to environmental tobacco 
smoke.  These actions, combined with the diminishing social acceptance of smoking, have resulted in reduced cigarette industry volume, 
and we expect that these factors will continue to reduce cigarette consumption levels, which could have a material adverse effect on our 
business, results of operations, cash flows or financial position.
We cannot predict whether regulators, including the FDA, will permit the marketing or sale of any particular innovative products 
(including products with claims of reduced risk to adult tobacco consumers) or whether they will impose a burdensome regulatory 
framework on such products.  In addition, the FDA could, for a variety of reasons, determine that innovative products on the market but 
pending FDA review of the associated PMTA (such as on! oral nicotine pouches), or those that have previously received authorization 
are not appropriate for the public health, and the FDA could require such products be taken off the market.  We also cannot predict 
whether or to what extent the FDA will take enforcement actions against manufacturers and products that violate the law.
The actions and inaction of regulators, including the FDA, can result in competitive challenges.  For example, unpredictable and lengthy 
regulatory review periods complicate efforts to strategize and plan with respect to commercialization of new products, and we cannot 
11

predict or influence the speed with which the FDA reviews PMTAs.  A protracted FDA review of one of our operating companies’ 
PMTAs would allow competitive products already on the market to establish market share, brand recognition and adult tobacco 
consumer loyalty in the absence of competition from our product.  Additionally, we cannot control the order in which the FDA reviews 
PMTAs.  The FDA could review a PMTA for a competitor’s product before it reviews a PMTA submitted by one of our operating 
companies with respect to a competing product notwithstanding that our operating company submitted its PMTA first.  Scenarios such as 
these would put us at a competitive disadvantage, which could have a material adverse impact on our business, profitability and our 
ability to achieve our Vision.
In addition to the outcomes discussed above, actions and inaction by the FDA and other federal, state or local governments or agencies 
can (i) impact the adult tobacco consumer acceptability of or access to tobacco products (for example, through nicotine or constituent 
limits or menthol or other flavor bans), (ii) limit adult tobacco consumer choices, (iii) restrict communications to adult tobacco 
consumers, (iv) restrict the ability to differentiate tobacco products, (v) impose additional manufacturing, labeling or packaging 
requirements, (vi) interrupt manufacturing or otherwise significantly increase the cost of doing business, (vii) result in increased illicit 
trade in tobacco products, (viii) restrict or prevent the use of specified tobacco products in certain locations or the sale of tobacco 
products by certain retail establishments, (ix) require the recall of tobacco products due to a determination relating to product 
contamination or (x) otherwise require the removal of tobacco products from the marketplace (for example, due to a determination that 
one or more tobacco products fail to satisfy the statutory requirements for substantial equivalence, must proceed through the pre-market 
review process or must be removed from the marketplace for the protection of public health).
Any federal, state or local governmental action, including regulatory actions and inaction by the FDA, may have a material adverse 
impact on our business, results of operations, cash flows or financial position.  Such action and inaction also could negatively impact 
adult smokers’ transition to these products, which could materially adversely affect our ability to achieve our Vision.
Tobacco products are subject to substantial taxation, and any increases in tobacco product-related taxes could have a material 
adverse impact on sales of our operating companies’ products.
Tobacco products are subject to substantial taxation, including excise taxes.  Significant increases in taxes or fees on tobacco products 
(including traditional products as well as e-vapor and oral nicotine products) have been proposed or enacted and are likely to continue to 
be proposed or enacted within the United States at the federal, state and local levels.  The frequency and magnitude of excise tax 
increases can be influenced by various factors, including federal and state budgets and the composition of executive and legislative 
bodies.  Tax increases are expected to continue to have an adverse impact on sales of our operating companies’ tobacco products through 
lower consumption levels and the potential shift in adult tobacco consumer purchases from the premium to the non-premium or discount 
segments, to other low-priced or low-taxed tobacco products or to counterfeit and contraband products.  Such shifts may also have an 
adverse impact on the reported share performance of our tobacco products.  Any increases in tobacco-related taxes or fees could have a 
material adverse impact on our business, results of operations, cash flows or financial position.  In addition, substantial excise tax 
increases on e-vapor and oral nicotine products could negatively impact adult smokers’ transition to these products, which could 
materially adversely affect our ability to achieve our Vision.
International business operations subject us to various U.S. and foreign laws and regulations, and violations of such laws or 
regulations could result in reputational harm, legal challenges and significant penalties and other costs.
While we are primarily engaged in business activities in the United States, we engage (directly or indirectly) in certain international 
business activities that are subject to various U.S. and foreign laws and regulations, such as foreign privacy laws, the U.S. Foreign 
Corrupt Practices Act and other laws prohibiting bribery and corruption.  Although we have a Code of Conduct for Compliance and 
Integrity and a compliance system designed to prevent and detect violations of applicable law, no system can provide assurance that it 
will always protect against improper actions by employees, joint venture partners, investees or third parties.  Violations of these laws, or 
allegations of such violations could result in reputational harm, legal challenges and significant penalties and other costs.
A challenge to our tax positions, an increase in the income tax rate or other changes to federal or state tax laws could materially 
adversely affect our earnings or cash flows.
Tax laws and regulations are complex and subject to varying interpretations.  A successful challenge to one or more of our tax positions 
(which could give rise to additional liabilities, including interest and potential penalties), an increase in the corporate income tax rate or 
other changes to federal or state tax laws, including changes to how foreign investments are taxed, could materially adversely affect our 
earnings or cash flows.
Legal and regulatory requirements related to climate change and other environmental sustainability matters could have a 
material adverse impact on our business and results of operations.
The increased concern over climate change and other sustainability matters is likely to result in new or additional legal and regulatory 
requirements intended to reduce or mitigate environmental issues.  Furthermore, as our operating companies do business in new 
international markets and expand their product portfolios, we may become subject to new legal and regulatory requirements related to 
climate change and other environmental and corporate sustainability matters.  New or additional requirements may relate to, among 
other things, greenhouse gas emissions, alternative energy policy, single-use plastics and additional disclosure obligations with respect to 
12

climate change and environmental sustainability matters.  These additional laws and regulations could materially adversely affect our 
business, results of operations, cash flows and financial condition by increasing our compliance and manufacturing costs and creating 
legal and reputational risk if we are unable to, or are perceived not to, satisfy such requirements.
Capital Markets and Financing Risks
Disruption and uncertainty in the credit and capital markets could materially adversely affect our business.
Access to the credit and capital markets is important for us to satisfy our liquidity and financing needs.  We typically access the 
commercial paper market in the second quarter to help fund payments under the Master Settlement Agreement (the “MSA”), tax 
obligations and shareholder dividends.  Disruption and uncertainty in the credit or capital markets or high interest rates could negatively 
impact the availability or cost of capital and adversely affect our liquidity, cash flow, earnings and dividend rate.  In addition, tighter 
credit markets could lead to business disruptions for our suppliers and service providers, which could, in turn, materially adversely 
impact our business, results of operations, cash flows and financial condition.
A downgrade or potential downgrade of our credit ratings could adversely impact our borrowing costs and access to credit and 
capital markets, which could materially adversely affect our financial condition.
Rating agencies routinely evaluate us, and their ratings are based on a number of factors, including our cash generating capability, levels 
of indebtedness, policies with respect to shareholder distributions, the impact of strategic transactions and our financial strength 
generally, as well as factors beyond our control, such as the state of the economy and our industry.  Any downgrade or announcement 
that we are under review for a potential downgrade of our credit ratings, as occurred following our former investment in JUUL, 
especially any downgrade to below investment grade, could increase our future borrowing costs, impair our ability to access the credit 
and capital markets, including the commercial paper market, on terms commercially acceptable to us or at all or result in a reduction in 
our liquidity, requiring us to rely on more expensive types of financing.  Any such outcome could have a material adverse impact on our 
financial condition.
Our performance relating to corporate responsibility matters and investor and stakeholder responses thereto may impact our 
reputation, ability to attract investors and the market value of our stock.
There has been a heightened focus from investors and other stakeholders on corporate responsibility, including with respect to 
environmental, social and governance matters.  In response, there has been an increase in third-party providers of assessments and 
ratings to satisfy investor demand for measurement of corporate responsibility performance, and the criteria by which these third parties 
measure such performance may vary or change over time.  Furthermore we have published reports concerning our goals, approach and 
progress with respect to a range of corporate responsibility focus areas.  Investors may use these non-financial performance factors and 
reports to guide investment strategies, and investor and other stakeholder expectations of and responses to our policies, actions, goals 
and disclosures concerning corporate responsibility matters may evolve over time.  Investors may choose not to invest in us if their 
policies prevent them from investing in tobacco companies and may base investment and other decisions on their view of our policies, 
actions, goals or disclosures with respect to corporate responsibility matters.
There is also increased focus, including by governmental and non-governmental organizations, investors, trade customers, consumers, 
our employees and others, on environmental, social and governance matters.  Despite our efforts, any failure to achieve our corporate 
responsibility goals, including those aimed at reducing the harm associated with our companies’ products and our underage tobacco 
prevention goals, could result in adverse publicity.  Furthermore, if investors or other stakeholders view our corporate responsibility 
policies, actions, goals or disclosures as insufficient or otherwise unacceptable, we could incur negative publicity and litigation 
challenges.  These outcomes could materially adversely affect our businesses and reputation and impair our ability to attract and retain 
investors, which could have a material negative impact on the market value of our stock.
Information Technology and Data Privacy Risks
The failure of our, or our service providers’, key suppliers’ or trade customers’, information systems to function as intended, or 
cyber-attacks or security breaches, could have a material adverse effect on our business, reputation, results of operations, cash 
flows or financial position.
We rely extensively on information technology, much of which is managed by third-party service providers (such as cloud data service 
providers), to support a variety of business processes and activities, including: complying with regulatory, legal, financial reporting and 
tax requirements; engaging in marketing and e-commerce activities; managing and improving the effectiveness of our operations; 
researching, developing, manufacturing and distributing our products; collecting and storing sensitive data and confidential information; 
and communicating with employees, investors, suppliers, trade customers, adult tobacco consumers and others.  Our suppliers, supply 
chain service providers and trade customers also rely extensively on information systems.  We are also increasing the frequency and 
scale of new technology and systems deployment both directly and through third parties.
We continue to make appropriate investments in administrative, technical and physical safeguards to protect our information systems 
and data from cyber-threats, including human error and malicious acts.  Our safeguards include employee training, testing and auditing 
13

protocols, backup systems and business continuity plans, maintenance of security policies and procedures, monitoring of networks and 
systems, and third-party risk management.
From time-to-time, we and our service providers, suppliers and trade customers experience attempts to infiltrate and interrupt 
information systems.  To date, we have not experienced any interruptions of these information systems as a result of infiltration attempts. 
However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent, there can be 
no assurance that such incidents will not cause interruptions that could have a material adverse effect on us in the future.  For example, 
the rapid evolution and increased adoption of artificial intelligence technologies may intensify our and our service providers’, key 
suppliers’ and trade customers’ cybersecurity risks.  Bad actors around the world use increasingly sophisticated methods, including the 
use of artificial intelligence, to engage in illegal activities involving the theft and misuse of personal information, confidential 
information and intellectual property.  Any of these outcomes could damage our reputation, result in the loss of valuable property and 
information and adversely impact our business.
Outsourcing certain business functions pursuant to the Initiative may increase our exposure to risks such as data breaches, which could 
compromise sensitive information.  Implementation of new technology and systems deployment may increase our risk of data security 
incidents, internal control failures and regulatory noncompliance.  Our vendors and third-party partners may incorporate artificial 
intelligence tools into their offerings with or without disclosing this use to us.  The providers of these artificial intelligence tools may not 
meet existing or rapidly evolving regulatory or industry standards concerning privacy and data protection, which may result in a loss of 
intellectual property or confidential information or cause harm to our reputation and the public perception of the effectiveness of our 
security measures.  Failure of our, or our service providers’, key suppliers’ or trade customers’, information systems to function as 
intended, or cyber-attacks or security breaches, could result in loss of revenue, assets, personal data, intellectual property, trade secrets or 
other sensitive and confidential data, financial misstatements, violation of applicable privacy and data security laws, reputational harm to 
our operating companies and their brands, operational disruptions, legal challenges and significant remediation and other costs, all of 
which could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position.
Our failure, or the failure of our service providers, key suppliers or trade customers, to comply with personal data protection, 
privacy, artificial intelligence and information security laws could materially adversely affect our business.
We and our service providers, key suppliers and trade customers are subject to a variety of continuously evolving and developing laws 
and regulations in numerous jurisdictions regarding personal data protection, privacy, artificial intelligence and information security.
These laws and regulations may be interpreted and applied differently from country to country or, within the United States, from state to 
state, and can create inconsistent or conflicting requirements.  For example, as our business expands internationally and we outsource 
certain business functions to vendors in foreign jurisdictions as part of the Initiative, we may incur additional costs associated with 
compliance with foreign data protection laws and incur additional risk of non-compliance with such laws.  Privacy laws and regulations 
are also expanding in the United States.  Comprehensive state privacy laws are either in effect or have been enacted in a number of 
states, and similar laws are being considered in several other states, as well as at the federal and local levels.  Our efforts, and the efforts 
of our service providers, key suppliers and trade customers, to comply with the evolving patchwork of differing foreign, federal, state 
and local laws and regulations impose significant costs and challenges that are likely to continue to increase over time, particularly as 
additional jurisdictions adopt similar regulations.  Failure to comply with these laws and regulations or to otherwise protect personal data 
from unauthorized access, use or other processing, could result in litigation, claims, regulatory proceedings, inquiries or investigations, 
damage to our reputation, fines, penalties and business disruptions, all of which could have a material adverse effect on our business, 
reputation, results of operations, cash flows or financial position.
Risks Relating to Our Investments in Equity Securities
The expected benefits of our investment in ABI may not materialize in the expected manner or timeframe or at all, which could 
have a material adverse impact on our financial position or earnings.
The expected benefits of our investment in ABI may not materialize in the expected manner or timeframe or at all, including due to 
foreign currency exchange rates; ABI’s business results; ABI’s share price; impairment losses on the value of our investment; our 
incurrence of additional tax liabilities related to our investment in ABI; and potential reductions in the number of directors that we can 
have appointed to the ABI board of directors.
We account for our investment in ABI under the equity method of accounting.  For purposes of financial reporting, the earnings from 
and carrying value of our investment in ABI are translated into U.S. dollars (“USD”) from various local currencies.  In addition, ABI 
pays dividends in euros, which we convert into USD.  During times of a strengthening USD against these currencies, our reported 
earnings from and carrying value of our investment in ABI will be reduced because these currencies will translate into fewer USD and 
the dividends that we receive from ABI will convert into fewer USD.  Dividends and earnings from and carrying value of our investment 
in ABI are also subject to the risks encountered by ABI in its business, its business outlook, cash flow requirements and financial 
performance, the state of the market and the general economic climate.  For example, in 2020, as a result of the uncertainty, volatility 
and impact of the COVID-19 pandemic on ABI’s business, ABI reduced by 50% its final 2019 dividend paid in the second quarter of 
14

2020 and did not pay its interim 2020 dividend that would have been paid in the fourth quarter of 2020, which resulted in a reduction of 
cash dividends we received from ABI.
We assess the value of our investment in ABI as required by United States generally accepted accounting principles (“GAAP”).  If the 
carrying value of our investment in ABI exceeds its fair value and we determine that the loss in value is other than temporary, we record 
appropriate impairment losses.  In a prior period, we concluded that the fair value of our investment in ABI declined below the carrying 
value of our investment in ABI and that this decline in fair value was other than temporary.  As a result, we recorded a non-cash, pre-tax 
impairment charge for that period.  It is possible that we may be required to record significant impairment charges in the future and, if 
we do so, our net earnings and carrying value of our investment in ABI could be materially adversely affected.
In the event that our ownership percentage in ABI were to decrease below certain levels, (i) we may be subject to additional tax 
liabilities, (ii) the number of nominees that we have the right to select for election to the ABI board of directors could be reduced and 
(iii) we may be unable to continue to account for our investment in ABI under the equity method of accounting.
Our investment in Cronos subjects us to certain risks associated with Cronos’s business, including legal, regulatory and 
reputational risks.
Our investment in Cronos, a Canadian cannabinoid company, subjects us to various risks relating to Cronos’s business, such as legal, 
regulatory and reputational risks.  Cronos is engaged in the cultivation, manufacture and marketing of cannabis and cannabis-derived 
products for the medical and adult-use markets in various international jurisdictions.  Accordingly, Cronos’s operations are subject to 
laws, regulations and guidelines promulgated by various governmental authorities.  In the United States, these laws include the 
Controlled Substances Act, the Civil Assets Forfeiture Reform Act (as it relates to violation of the Controlled Substances Act), all related 
applicable anti-money laundering laws and FDA regulations.  A failure by Cronos or Altria to comply with applicable laws, including 
cannabis laws, could result in criminal, civil or tax liability, negative impacts on the availability and cost of capital and credit or 
reputational harm for Altria.
Item 1B.  Unresolved Staff Comments.
None.
Item 1C.  Cybersecurity.
Risk Management and Strategy
We rely extensively on information technology, much of which is managed by third-party service providers (such as cloud data service 
providers), to support a variety of business processes and activities, including: complying with regulatory, legal, financial reporting and 
tax requirements; engaging in marketing and e-commerce activities; managing and improving the effectiveness of our operations; 
researching, developing, manufacturing and distributing our products; collecting and storing sensitive data and confidential information; 
and communicating with employees, investors, suppliers, trade customers, adult tobacco consumers and others.  Recognizing the critical 
importance of cybersecurity in today’s digital landscape, we are committed to safeguarding our information assets, protecting consumer 
data and maintaining the integrity and availability of our systems.  Accordingly, we have implemented an extensive cybersecurity risk 
management framework designed to identify, assess, mitigate and prevent potential cybersecurity risks and to align with industry best 
practices and all applicable regulatory requirements.  We leverage the National Institute of Standards and Technology (“NIST”) 
Cybersecurity Framework and industry best practices to identify and prioritize cybersecurity risks based on their potential impacts.  We 
also use the NIST framework and industry best practices to drive enhancements to our program that are designed to protect our assets 
and third-party partners.  The NIST framework also helps us maintain ongoing compliance with regulatory requirements.  We align our 
security standards for infrastructure configuration with the Center for Internet Security’s Benchmarks, which are prescriptive 
recommendations based upon the consensus of global cybersecurity experts.
Our framework is built around the following key principles: (i) risk assessment and threat intelligence; (ii) security controls; (iii) incident 
response; (iv) employee awareness and training; and (v) third-party risk management.  We have integrated our cybersecurity framework 
into our broad enterprise risk management processes, which allows us to leverage our existing enterprise-wide experience in managing 
risk and adapting to change in the cybersecurity threat landscape.
▪
Risk Assessment and Threat Intelligence: We conduct regular risk assessments to identify potential cybersecurity
vulnerabilities and threats.  Our Information Technology (“IT”) Risk Management function, overseen by our Chief Information Security
Officer (“CISO”), leads internal self-assessments, which involve evaluating the security posture of critical systems, networks and
applications as well as the potential impact of cybersecurity threats on our business operations, financial condition and reputation.  IT
Risk Management also conducts ongoing threat monitoring and has implemented monitoring systems, including technologies such as
intrusion detection systems, security information and event management tools and threat intelligence programs.
We regularly engage third-party consulting services to conduct audits and assessments of the effectiveness of our cybersecurity controls 
and processes and identify areas for improvement based on developments in industry best practices.  We typically engage these services 
15

annually, though the cadence can differ based on the results of the audits and assessments.  We also leverage third parties to evaluate our 
cybersecurity and risk management strategy, review policies and procedures to address new risks and maintain ongoing compliance with 
evolving legal and regulatory requirements.  For example, we partner with leading global security providers to leverage various threat 
intelligence channels as input to monitor and tune our cybersecurity controls.
▪
Security Controls: We employ a layered approach to cybersecurity, implementing a range of technical and procedural controls
designed to protect critical systems and data.  These controls include (i) firewalls and intrusion detection and prevention systems to
monitor and block unauthorized access attempts, detect and deter malicious activity and safeguard network infrastructure, (ii)
encryption, including secure protocols and multi-factor authentication, to protect information in transit and at rest and (iii) secure
network architecture that segregates critical systems from the public internet, limiting exposure to potential threats.  We also conduct
regular security patching to manage emerging cyber threats.
▪
Incident Response: We have established an incident response plan and playbooks, which include procedures designed to
respond to and recover from cybersecurity incidents.  These procedures, which our IT Risk Management function reviews on an ongoing
basis both internally and with third-party consultants, provide detailed descriptions of the roles and responsibilities of key stakeholders
and the procedures for communication and coordination during an incident.  The procedures also provide guidelines for escalating
information to senior management, our Disclosure Controls Committee, our Audit Committee, which, as discussed below, has been
delegated cybersecurity program oversight responsibility, and our full Board and for providing timely public disclosure, when necessary.
To maintain incident readiness, business continuity and IT resilience, we conduct periodic disaster recovery exercises and cybersecurity 
incident management exercises led by our IT Risk Management function.  These exercises involve simulating various scenarios and 
testing our response strategies, allowing us to identify vulnerabilities, refine procedures and enhance our overall crisis management and 
recovery capabilities.  We believe regular practice and evaluation allows us to minimize the impact of potential disruptions and 
safeguard our operations, data and reputation.
▪
Employee Awareness and Training: We recognize that employees play a critical role in maintaining a strong cybersecurity
posture.  Our Information Governance Policy sets forth the requirements for employee conduct relating to company information and
company-managed devices, including relevant privacy, data security and data retention policies.  We believe that our Information
Governance Policy is aligned with industry best practices and applicable legal and regulatory requirements.  In addition to our
Information Governance Policy, we conduct cybersecurity training programs emphasizing the importance of cybersecurity awareness at
least annually and more frequently as necessary or advisable.  These programs address relevant cybersecurity topics, such as common
cybersecurity threats, phishing awareness and best practices for safeguarding sensitive information.  Employees are held accountable for
completing all assigned cybersecurity programs and meeting certain performance thresholds in phishing awareness exercises, and there
is a range of consequences for underperformance that includes termination.
▪
Third-Party Risk Management: We acknowledge the potential cybersecurity risks inherent in our relationships with third-
parties.  Accordingly, we have implemented a third-party risk management program to identify and oversee such risks.  This program
relies on key elements including risk assessment, due diligence, contractual provisions and ongoing monitoring to identify and mitigate
impacts from high-risk third-parties and of specific risks.  We use security risk assessment questionnaire tools to identify high-risk third-
parties, which we believe allows us to effectively assess and mitigate potential security vulnerabilities.
Our third-party risk assessment framework evaluates the cybersecurity practices and controls of third-parties.  For high-risk third-parties, 
we perform due diligence inquiries, reviewing documentation with respect to their security policies, incident response capabilities, data 
protection measures and regulatory compliance.  We also review evidence of cybersecurity certifications and the results of independent 
audits.  For high-risk third-parties with access to sensitive data or systems, we conduct more in-depth assessments.  Our contracts with 
high-risk third-parties contain provisions related to data protection, confidentiality, incident reporting and compliance with all applicable 
laws and regulations.  Throughout our engagements with high-risk third-parties, we maintain a monitoring program with respect to their 
cybersecurity posture.  Leveraging tools such as security questionnaires, security ratings and external threat intelligence, we regularly 
review and update third-party risk assessments based on changes in the third-party’s services or practices and the risk landscape.
Governance
Our Board devotes significant time and attention to our cybersecurity and information technology risks.  Our Board executes its 
cybersecurity risk oversight as a whole and by delegating responsibility to our Audit Committee.  Our CISO and Chief Information 
Officer present to our Board annually and to our Audit Committee at least twice each year on a broad range of topics, such as recent and 
potential cybersecurity threats and incidents across our industry, best practices and policies, emerging trends, vulnerability assessments 
and management’s ongoing efforts to prevent, detect and address internal and external cybersecurity threats specific to us.  These 
briefings also include reporting on periodic third-party cybersecurity program assessments and benchmarks and updates from our 
cybersecurity incident management exercises.  Cybersecurity risks are documented in an IT Risk Dashboard, which is shared with our 
Audit Committee for awareness several times each year.  Our full Board also has access to these materials.  Finally, we provide periodic 
cybersecurity training to our Audit Committee and Board to further cybersecurity awareness and risk oversight.
16

While our Board and Audit Committee oversee cybersecurity risk, senior management is responsible for actively managing 
cybersecurity risk, including by overseeing and executing the risk management strategies discussed above.  Our Risk Oversight 
Committee, which is chaired by our Chief Compliance Officer and comprised of members of senior management, including our Chief 
Financial Officer, Chief Operating Officer, Chief Strategy and Growth Officer and General Counsel, oversees the management of key 
enterprise risks, including cybersecurity risks.  Senior management reports annually to the Board with respect to our overall enterprise 
risk management processes.  Our CISO presents to the Risk Oversight Committee quarterly to review the status of management’s key 
cybersecurity risk management strategies.  The Risk Oversight Committee also receives the quarterly IT Risk Dashboard.
Our CISO is responsible for assessing and managing cybersecurity risks and maintaining our cybersecurity program.  Our CISO has over 
25 years of experience, including five years as our CISO, managing technology risks across multiple industries, including financial 
services, technology and manufacturing.  Through strategic hiring and internal development, our CISO enhances the levels of skill and 
experience on our IT Risk Management team to stay ahead of evolving cybersecurity threats.  As of the date of this filing, 100% of our 
IT Risk Management team has technical industry certification, and members of the IT Risk Management team have an average of 15 
years of cybersecurity experience.  Our CISO currently serves as an advisor to multiple industry groups.  Our cybersecurity program 
undergoes an annual third-party controls effectiveness assessment and bi-annual program maturity evaluation against industry peers and 
consistently receives assessments indicating that it is ahead of the cybersecurity programs of our peer group.
As of the date of this filing, we are not aware of any current cybersecurity threats or cybersecurity incidents that have materially affected 
or are reasonably likely to materially affect our business, results of operations or financial condition.  From time-to-time, we and our 
third-party service providers, suppliers and trade customers experience attempts to infiltrate and interrupt information systems.  To date, 
we have not experienced any interruptions of these information systems as a result of infiltration attempts.  For further discussion of the 
risks related to cybersecurity, see Risks Relating to Our Business - Information Technology and Data Privacy Risks in Item 1A.
Item 2.  Properties.
ALCS owns one property in Richmond, Virginia that serves as the headquarters facilities for Altria, PM USA, USSTC, Middleton, 
Helix, NJOY and certain other subsidiaries.
PM USA owns and operates a manufacturing facility located in Richmond, Virginia that PM USA uses in the manufacturing of 
cigarettes (smokeable products segment).  PM USA leases portions of this facility to our other subsidiaries for use in the manufacturing 
of cigars (smokeable products segment) and oral nicotine pouches (oral tobacco products segment).  In addition, PM USA owns a 
research and technology center in Richmond, Virginia that it leases to ALCS.
The oral tobacco products segment has various manufacturing and processing facilities, the most significant of which are located in 
Nashville, Tennessee and Hopkinsville, Kentucky.
The plants and properties owned or leased and operated by us are maintained in good condition and are believed to be suitable and 
adequate for present needs.
Item 3.  Legal Proceedings.
The information required by this Item is included in Note 20. Contingencies to our consolidated financial statements in Item 8 (“Note 
20”) and Exhibits 99.1 and 99.2 to this Form 10-K.  Altria’s consolidated financial statements and accompanying notes for the year 
ended December 31, 2024 were filed on Form 8-K on January 30, 2025 (such consolidated financial statements and accompanying notes 
are also included in Item 8).  The following summarizes certain developments in Altria’s litigation since the filing of the Form 8-K.
Recent Developments
▪
E-vapor Product Litigation
In February 2025, we filed a motion for reconsideration of the ITC’s determination finding that NJOY ACE infringes the four patents 
plaintiff asserted, asking the ITC to reverse its determination that NJOY ACE infringes one of the four patents that the ITC determined 
NJOY ACE infringes.
Item 4.  Mine Safety Disclosures.
Not applicable.
17

Date
Altria
S&P Food, Beverage 
& Tobacco
S&P 500
December 2019
$ 
100.00 
$ 
100.00 
$ 
100.00 
December 2020
$ 
89.62 
$ 
105.56 
$ 
118.40 
December 2021
$ 
111.37 
$ 
122.64 
$ 
152.39 
December 2022
$ 
116.24 
$ 
133.76 
$ 
124.79 
December 2023
$ 
112.08 
$ 
127.99 
$ 
157.59 
December 2024
$ 
157.88 
$ 
132.50 
$ 
197.02 
Source: FactSet - Total return assumes reinvestment of dividends as of the ex-dividend date.
Market and Dividend Information
The principal stock exchange on which our common stock (par value $0.33 1/3 per share) is listed is the New York Stock Exchange 
under the trading symbol “MO”.  At February 14, 2025, there were approximately 46,000 holders of record of our common stock.
We have a history of paying cash dividends, and have a progressive dividend goal targeting mid-single digits dividend per share growth 
annually through 2028.  Future dividend payments remain subject to the discretion of our Board.
Part II
Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of 
Equity Securities.
Performance Graph
The graph below compares the cumulative total shareholder return of our common stock for the last five years with the cumulative total 
return for the same period of the S&P 500 Index and the S&P Food, Beverage and Tobacco Industry Group Total Return Index.  The 
graph assumes the investment of $100 in common stock and each of the indices as of the market close on December 31, 2019 and the 
reinvestment of all dividends on a quarterly basis.
2019 
2020  
2021 
2022 
2023 
2024
$200
$150
$100
$50
Comparison of Five-Year Cumulative Total Shareholder Return
S&P Food, Beverage & Tobacco
Year Ending
Altria/Index Value
S&P 500
Altria
18

Issuer Purchases of Equity Securities During the Quarter Ended December 31, 2024
In January 2024, our Board authorized a $1.0 billion share repurchase program that it increased to $3.4 billion in March 2024 (as 
increased, “January 2024 share repurchase program”), which we completed in December 2024.
In January 2025, our Board authorized a new $1.0 billion share repurchase program, which we expect to complete by December 31, 
2025.  The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program 
remains subject to the discretion of our Board.
Our share repurchase activity for each of the three months in the period ended December 31, 2024, was as follows:
Period
Total Number of 
Shares Purchased (1)
Average 
Price Paid 
Per Share
Total Number of 
Shares Purchased as 
Part of Publicly 
Announced Plans or 
Programs
Approximate Dollar 
Value of Shares that 
May Yet be Purchased 
Under the Plans or 
Programs 
October 1- October 31, 2024
2,352,238 $ 
50.04 
2,351,399 $ 
191,863,426 
November 1- November 30, 2024
1,781,329 $ 
55.30 
1,777,700 $ 
93,546,378 
December 1- December 31, 2024
1,707,103 $ 
54.80 
1,707,103 $ 
— 
For the Quarter Ended December 31, 2024
5,840,670 $ 
53.04 
5,836,202 
(1)  The total number of shares purchased includes (a) shares purchased under the January 2024 share repurchase program and (b) shares withheld by
Altria in an amount equal to the statutory withholding taxes for vested stock-based awards previously granted to eligible employees (which totaled
839 in October and 3,629 in November).
Item 6.  [Reserved].
Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion should be read in conjunction with the other sections of this Form 10-K, including our consolidated financial 
statements and related notes contained in Item 8, and the discussion of risk factors that may affect future results in Item 1A.  
Additionally, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) in 
our 2023 Annual Report on Form 10-K for management’s discussion and analysis of financial condition and results of operations for the 
year ended December 31, 2023 compared to the year ended December 31, 2022, which we filed with the SEC on February 27, 2024 and 
is incorporated by reference into this Form 10-K.
In this MD&A section, we refer to the following “adjusted” financial measures: adjusted operating companies income (loss) (“OCI”); 
adjusted OCI margins; adjusted net earnings; adjusted diluted earnings per share (“EPS”); and adjusted effective tax rates.  We also refer 
to the ratio of debt-to-Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization, as defined in our credit 
agreement, which includes certain adjustments).  These financial measures are not required by, or calculated in accordance with, GAAP 
and may not be calculated the same as similarly titled measures used by other companies.  These financial measures should thus be 
considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in 
accordance with GAAP.  For a further description of these non-GAAP financial measures, see the Non-GAAP Financial Measures 
section below.
Executive Summary
Our Business
We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+.  Our Vision is to responsibly lead the transition of 
adult smokers to a smoke-free future.  We are Moving Beyond SmokingTM, leading the way in moving adult smokers away from 
cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for adult 
tobacco consumers, our businesses and society.
Our wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products.  In combustibles, we own 
PM USA, the most profitable U.S. cigarette manufacturer, and Middleton, a leading U.S. cigar manufacturer.
In smoke-free products, we own USSTC, the leading global MST manufacturer, Helix, a leading manufacturer of oral nicotine pouches, 
and NJOY, an e-vapor manufacturer with a commercialized product portfolio fully covered by MGOs from the FDA.  Additionally, we 
have a majority-owned joint venture, Horizon, for the U.S. marketing and commercialization of HTS products.
The brand portfolios of our operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.  Trademarks 
related to Altria referenced in this Form 10-K are the property of Altria or our subsidiaries or are used with permission.
Our investments in equity securities include ABI, the world’s largest brewer, and Cronos, a leading Canadian cannabinoid company.
19

For a description of Altria, see Item 1. Business of this Form 10-K (“Item 1”).
Vision and 2028 Goals
As we execute on our Vision, we established our 2028 Enterprise Goals (“2028 Goals”) to provide our investors with specific metrics to 
measure our progress.  Our 2028 Goals are:
▪
Corporate
▪
Deliver a mid-single digits adjusted diluted EPS compounded annual growth rate in 2028 from a $4.84 base in 2022 (for our
progress through 2024, see Consolidated Results of Operations);
▪
A progressive dividend goal targeting mid-single digits dividend per share growth annually through 2028;
▪
Target a debt-to-Consolidated EBITDA ratio of approximately 2.0x (see Liquidity and Capital Resources);
▪
Maintain our leadership position in the U.S. tobacco space; and
▪
Maintain a total adjusted OCI margin of at least 60% in each year through 2028 (see Operating Results by Business Segment).
▪
U.S. Smoke-Free Portfolio
▪
Grow U.S. smoke-free volumes by at least 35% from our 2022 base of 800 million units by 2028 (see Operating Results by
Business Segment); and
▪
Approximately double our U.S. smoke-free net revenues to $5 billion by 2028 from our 2022 base, with $2 billion sourced from
innovative smoke-free products (see Operating Results by Business Segment).
We are reassessing our U.S. smoke-free goals due to the continued proliferation of illicit flavored disposable e-vapor products resulting 
from insufficient enforcement action against manufacturers, distributors and retailers of these products.  We anticipate providing updated 
U.S. smoke-free goals when we have more clarity on how the legitimate e-vapor market may evolve.  For additional information on the 
e-vapor category, see Operating Results by Business Segment - Business Environment.
▪
Long-Term Growth
▪
Compete internationally in the top innovative oral tobacco markets and develop a pathway to participate in heated tobacco and
e-vapor markets; and
▪
Enter non-nicotine categories with broad commercial distribution of at least five products by 2028.
Optimize & Accelerate Initiative
In October 2024, we announced a multi-phase Initiative designed to modernize our ways of working as we work towards achieving our 
Vision and 2028 Goals.  Through the Initiative, we plan to increase our organization’s speed, efficiency and effectiveness by centralizing 
work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes.  We expect the design and 
detailed plans for all phases of the Initiative to be substantially complete in early 2026.  As part of the Initiative, we established an ABS 
organization within ALCS.  This organization will be responsible for driving efficiency and process improvement across our companies 
in partnership with external service providers.
We expect the initial phases of the Initiative will deliver at least $600 million in cumulative cost savings over the next five years, which 
we plan to reinvest in our businesses in support of our Vision and 2028 Goals.  The cumulative cost savings exclude our estimated total 
pre-tax charges for the Initiative’s initial phases of approximately $100 million to $125 million, which we will treat as special items and 
exclude from our adjusted diluted EPS.  For further discussion of the Initiative, see Note 7. Asset Impairment, Exit and Implementation 
Costs to our consolidated financial statements in Item 8 (“Note 7”).
Trends and Developments
In this MD&A section, we discuss factors that have impacted our businesses as of the date of this Form 10-K.  In addition, we are aware 
of and address certain trends and developments that could, individually or in the aggregate, have a material impact on our businesses, 
including the value of our investments in equity securities, in the future.  We focus in this Trends and Developments section on the 
discretionary income pressures on adult tobacco consumers, illicit flavored disposable e-vapor products and recent regulatory and 
executive actions and their effects or potential effects on our businesses.
U.S. adult tobacco consumers remained under pressure throughout 2024 largely due to the compounding effects of high prices exceeding 
overall wage growth and historically high levels of consumer credit and credit card delinquency rates.  Although inflation rates stabilized 
in 2024, increased prices continued to pressure adult tobacco consumers.  These pressures influenced the discount segment retail share 
growth within the cigarette industry year-over-year.  We will continue to monitor conditions that impact adult tobacco consumer 
discretionary income and overall purchasing behaviors, including overall tobacco product expenditures, mix between premium and 
discount brand purchases and adoption of smoke-free products.  We expect discretionary income pressures will continue to influence 
adult tobacco consumers’ purchase behaviors in 2025.
Product assortment, regulation and enforcement continue to evolve in the e-vapor category.  For the 12 months ended December 31, 
2024, we estimate the e-vapor category grew by approximately 30% versus the prior 12-month period, driven by the growth of illicit 
20

flavored disposable e-vapor products.  We estimate that illicit products now represent more than 60% of the e-vapor category.  In 
response to the proliferation of illicit disposable e-vapor products, states and the federal government took various regulatory and 
enforcement actions throughout the year in 2024, but these actions have failed to curb this trend.  Select states have established e-vapor 
product registries based on PMTA submissions or MGOs.  Additionally, we continue to see increased illicit activity across multiple 
tobacco categories, including nicotine pouch products and cigarettes.
Tobacco companies are subject to broad and evolving regulatory and legislative frameworks that could have a material impact on our 
businesses.  For example, the FDA submitted proposed product standards banning menthol in cigarettes, which was delayed indefinitely 
in April 2024, and banning all characterizing flavors in cigars, both of which were withdrawn in January 2025.  In addition, in January 
2025, the FDA proposed a tobacco product standard that would establish a maximum nicotine level in cigarettes and certain other 
combustible tobacco products significantly lower than the average concentration in these products on the market today with the aim of 
making such products minimally or non-addictive.  The proposed rule is subject to the Trump Administration’s January 2025 executive 
order pausing all federal agency rulemaking for 60 days.  Following the 60-day pause, the proposed product standard, if not withdrawn, 
may proceed through the rulemaking process, including the solicitation of public comment.
See Operating Results by Business Segment - Business Environment for additional information on the trends and developments discussed 
above.
ABI’s business is exposed to foreign exchange rate fluctuations, inflation, commodity price movements and other macroeconomic 
factors that could impact financial performance from time to time.  We will continue to monitor these conditions and other factors as 
they could affect our equity earnings, our other comprehensive earnings/losses and the dividends that we receive from ABI, and the fair 
value of our investment in ABI.  See Note 8 for additional information on our investment in ABI.
The trends and developments discussed above have not had a material adverse impact on our consolidated financial statements, but we 
continue to monitor these trends and developments and potential financial impacts.  While the growth of illicit flavored disposable e-
vapor products has caused us to reassess certain of our 2028 Goals, we do not believe the trends and developments discussed above have 
materially impacted our ability to achieve our Vision.  As the trends and developments evolve and new ones emerge, we will continue to 
evaluate the potential impacts on our businesses, investments and Vision.
21

Consolidated Results of Operations
The changes in net earnings and diluted EPS for the year ended December 31, 2024, from the year ended December 31, 2023, were due 
primarily to the following:
(in millions, except per share data)
Net Earnings
Diluted EPS
For the year ended December 31, 2023
$ 
8,130 
$ 
4.57 
2023 NPM Adjustment Items
(38)
(0.02)
2023 Acquisition, disposition and integration-related items
26 
0.01 
2023 Tobacco and health and certain other litigation items
323 
0.18 
2023 Loss on disposition of JUUL equity securities
250 
0.14 
2023 ABI-related special items
70 
0.03 
2023 Cronos-related special items
29 
0.02 
2023 Income tax items
32 
0.02 
Subtotal 2023 special items
692 
0.38 
2024 NPM Adjustment Items
20 
0.01 
2024 Acquisition, disposition and integration-related items
1,862 
1.08 
2024 Asset impairment, exit and implementation costs
(315)
(0.18)
2024 Tobacco and health and certain other litigation items
(76)
(0.04)
2024 ABI-related special items
(2)
—
2024 Cronos-related special items
(15)
(0.01)
2024 Income tax items
969 
0.56 
Subtotal 2024 special items
2,443 
1.42 
Fewer shares outstanding
— 
0.17 
Change in tax rate
47 
0.03 
Operations
(48)
(0.03)
For the year ended December 31, 2024
$ 
11,264 
$ 
6.54 
2024 Reported Net Earnings 
$ 
11,264 
$ 
6.54 
2023 Reported Net Earnings 
$ 
8,130 
$ 
4.57 
% Change
 38.5 %
 43.1 %
2024 Adjusted Net Earnings and Adjusted Diluted EPS
$ 
8,821 
$ 
5.12 
2023 Adjusted Net Earnings and Adjusted Diluted EPS
$ 
8,822 
$ 
4.95 
% Change
 — %
 3.4 %
For a discussion of special items and other business drivers affecting the comparability of statements of earnings amounts and 
reconciliations of adjusted earnings and adjusted diluted EPS, see Consolidated Operating Results below.
▪
Fewer Shares Outstanding: Fewer shares outstanding were due to shares we repurchased under our share repurchase programs.
▪
Change in Tax Rate: The change in the tax rate (which excludes the impact of special items shown in the table above) was driven
primarily by lower state tax expense.
▪
Operations: The decrease of $48 million in operations (which excludes the impact of special items shown in the table above) was
due primarily to lower OCI and lower net periodic benefit income, excluding service cost.
For further details, see Consolidated Operating Results and Operating Results by Business Segment below.
22

Compounded EPS Growth Rate
Our 2028 Goals include delivering a mid-single digits adjusted diluted EPS compounded annual growth rate (“CAGR”) in 2028 from a 
$4.84 base in 2022.  Our calculation of progress towards this goal through 2024 is as follows:
For the Years Ended December 31,
CAGR
2024
2022
Reported diluted EPS
$ 
6.54 
$ 
3.19 
 43.2 %
NPM Adjustment Items
(0.01) 
(0.03) 
Acquisition, disposition and integration-related items
(1.08) 
— 
Asset impairment, exit and implementation costs
0.18 
— 
Tobacco and health and certain other litigation items
0.04 
0.05 
JUUL changes in fair value
— 
0.81 
ABI-related special items
— 
1.12 
Cronos-related special items
0.01 
0.10 
Income tax items
(0.56) 
(0.40) 
Adjusted diluted EPS
$ 
5.12 
$ 
4.84 
 2.9 %
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP.  However, our management also reviews certain financial results, including 
OCI, OCI margins, net earnings and diluted EPS, on an adjusted basis, which excludes certain income and expense items that our 
management believes are not part of underlying operations.  These items may include, for example, loss on early extinguishment of debt, 
restructuring charges, asset impairment charges, acquisition, disposition and integration-related items, equity investment-related special 
items, certain income tax items, charges associated with tobacco and health and certain other litigation items, and resolutions of certain 
non-participating manufacturer (“NPM”) adjustment disputes under the Master Settlement Agreement (“NPM Adjustment Items”).  In 
addition, our management reviews the ratio of debt-to-Consolidated EBITDA, which we use as a factor to determine our ability to access 
the capital markets and make investments in pursuit of our Vision.  Consolidated EBITDA is calculated in accordance with our Credit 
Agreement (defined below in Liquidity and Capital Resources) and includes certain adjustments.  Our management does not view any of 
these special items to be part of our underlying results as they may be highly variable, may be unusual or infrequent, are difficult to 
predict and can distort underlying business trends and results.  Our management also reviews income tax rates on an adjusted basis, 
which may exclude certain income tax items from our reported effective tax rate.
Our management believes that the foregoing financial measures provide useful additional insight into underlying business trends and 
results, and provide a more meaningful comparison of year-over-year results.  Our management uses these financial measures and 
regularly provides these to our chief operating decision maker (“CODM”) for planning, forecasting and evaluating business and financial 
performance, including allocating capital and other resources and evaluating results relative to employee compensation targets.  The 
foregoing financial measures are not required by, or calculated in accordance with, GAAP and may not be calculated the same as 
similarly titled measures used by other companies.  The foregoing financial measures should thus be considered as supplemental in 
nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.  When 
we provide a non-GAAP measure in this Form 10-K, we also provide a reconciliation of that non-GAAP financial measure to the most 
directly comparable GAAP financial measure.
Discussion and Analysis
Critical Accounting Estimates
Note 2. Summary of Significant Accounting Policies to our consolidated financial statements in Item 8 (“Note 2”) includes a summary of 
the significant accounting policies and methods used in the preparation of our consolidated financial statements.  In most instances, we 
must use an accounting policy or method because it is the only policy or method permitted under GAAP.
The preparation of financial statements includes the use of estimates and assumptions that affect the reported amounts of assets and 
liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and 
expenses during the reporting periods.  If actual amounts are ultimately different from previous estimates, the revisions are included in 
our consolidated results of operations for the period in which the actual amounts become known.  Historically, the aggregate differences, 
if any, between our estimates and actual amounts in any year have not had a significant impact on our consolidated financial statements.
23

The following is a review of the more significant assumptions and estimates, as well as the accounting policies and methods, used in the 
preparation of our consolidated financial statements:
▪
Revenue Recognition: Our businesses generate substantially all of their revenue from sales contracts with customers.  Our
businesses define net revenues as revenues, which include excise taxes and shipping and handling charges billed to customers, net of
cash discounts for prompt payment, sales returns (also referred to as returned goods) and sales incentives.  Our businesses exclude from
the transaction price sales taxes and value-added taxes imposed at the time of sale.
Our businesses record sales incentives, which consist of consumer incentives and trade promotion activities, as a reduction to revenues 
(a portion of which is based on amounts estimated as being due to wholesalers, retailers and consumers at the end of a period) based 
principally on historical volume, utilization and redemption rates.  We include expected payments for sales incentives in accrued 
marketing liabilities on our consolidated balance sheets.
For further discussion, see Note 4. Revenues from Contracts with Customers to our consolidated financial statements in Item 8.
▪
Depreciation, Amortization, Impairment Testing and Asset Valuation: We depreciate property, plant and equipment and
amortize our definite-lived intangible assets using the straight-line method over the estimated useful lives of the assets.  We depreciate
machinery and equipment over periods up to 20 years, and buildings and building improvements over periods up to 50 years.  We
amortize definite-lived intangible assets over their estimated useful lives up to 25 years.
We review long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in business 
circumstances indicate that the carrying value of the assets may not be fully recoverable.  We perform undiscounted operating cash flow 
analyses to determine if an impairment exists.  For purposes of recognition and measurement of an impairment for assets held for use, 
we group assets and liabilities at the lowest level for which cash flows are separately identifiable.  If we determine that an impairment 
exists, any related impairment loss is calculated based on fair value.  We base impairment losses on assets to be disposed of, if any, on 
the estimated proceeds to be received, less costs of disposal.  We also review the estimated remaining useful lives of long-lived assets 
whenever events or changes in business circumstances indicate the lives may have changed.
We conduct a required annual review of goodwill and indefinite-lived intangible assets for potential impairment as of October 1 of each 
year, and more frequently if an event occurs or circumstances change that would require us to perform an interim review.  We have the 
option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit or 
indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a 
quantitative impairment test.  If necessary, we will perform a single step quantitative impairment test.  Additionally, we have the option 
to unconditionally bypass the qualitative assessment and perform a single step quantitative assessment.  If the carrying value of a 
reporting unit that includes goodwill exceeds its fair value, which is determined using discounted cash flows, goodwill is considered 
impaired.  We measure the amount of impairment loss as the difference between the carrying value and the fair value of a reporting unit; 
however, the amount of the impairment loss is limited to the total amount of goodwill allocated to a reporting unit.  If the carrying value 
of an indefinite-lived intangible asset exceeds its fair value, which is determined using discounted cash flows, we consider the intangible 
asset to be impaired and reduce the carrying value to fair value in the period identified.
We use an income approach to estimate the fair value of our reporting units and trademarks using information available as of the 
impairment testing date.  The income approach reflects the discounting of expected future cash flows at a rate of return that incorporates 
the risk-free rate for the use of those funds, the expected rate of inflation and the risks associated with realizing expected future cash 
flows.
Goodwill by reporting unit and indefinite-lived intangible assets at December 31, 2024 were as follows:
(in millions)
Goodwill
Indefinite-Lived
Intangible Assets
Cigarettes
$ 
22 $ 
2 
MST products
5,023 
8,447 
Cigars
77 
2,640 
Oral nicotine pouches
55 
— 
E-vapor
1,768 
— 
Total
$ 
6,945 $ 
11,089 
Second Quarter of 2024 Skoal Impairment:
At December 31, 2023, the estimated fair value of the Skoal trademark exceeded its carrying value of $3.9 billion by approximately 6% 
($0.2 billion).  Sales volumes of MST products, including Skoal, have been negatively impacted due in part to evolving adult tobacco 
consumer preferences, which has resulted in consumers increasingly moving across tobacco categories.  In connection with the 
preparation of our financial statements for the period ended June 30, 2024, we evaluated the accelerated growth of innovative tobacco 
products, including oral nicotine pouches, and the related increase in competitive activity among tobacco categories, which have 
24

contributed to reductions in sales volumes for MST products, including Skoal.  We concluded that the expected impact from the sales 
volume declines on the Skoal trademark represented a triggering event and, as a result of this conclusion, we performed an interim 
impairment assessment as of June 30, 2024.  We determined the estimated fair value of the Skoal trademark as of June 30, 2024, was 
below its carrying value and recorded a non-cash, pre-tax impairment of $354 million during the second quarter of 2024, which was 
recorded in our consolidated statement of earnings for the year ended December 31, 2024.  Our estimate of the fair value and carrying 
value of the Skoal trademark at June 30, 2024 was $3.6 billion after recording the impairment.
2024 Annual Review of Goodwill and Indefinite-lived Intangible Assets:
We completed our annual impairment test of goodwill and indefinite-lived intangible assets performed as of October 1, 2024.  We 
elected to perform a qualitative assessment for certain of our reporting units and indefinite-lived intangible assets.  This qualitative 
assessment included the review of certain macroeconomic factors and entity-specific qualitative factors to determine if it was more likely 
than not that the fair values of our reporting units and indefinite-lived intangible assets were below carrying value.  For certain of our 
other reporting units and indefinite-lived intangible assets, we elected to unconditionally bypass the qualitative assessment and perform a 
single step quantitative assessment.
Upon completion of this testing, we determined that the estimated fair values of our reporting units and our indefinite-lived intangible 
assets exceeded their carrying values in all circumstances and thus, no impairment charges were recorded.  The estimated fair values 
substantially exceeded the carrying values for all of our reporting units and indefinite-lived intangible assets with the exception of our 
Skoal trademark and e-vapor reporting unit discussed below.
Although the estimated fair value of the Skoal trademark exceeded its carrying value of $3.6 billion by approximately 7% ($0.3 billion), 
MST products, including Skoal, continued to be negatively impacted due in part to evolving adult tobacco consumer preferences, which 
have continued to contribute to reductions in sales volumes for MST products, including Skoal, as discussed above.  We believe if the 
decline in sales volume for Skoal is higher than currently estimated and results in material revenue declines, there may be a material 
adverse effect on the significant assumptions used in performing our valuation.  These adverse effects, including if Skoal’s actual 
revenue and income or long-term outlook are significantly unfavorable compared to forecasted performance used to estimate the fair 
value or if the discount rate used to estimate the fair value increases, could result in a material non-cash impairment of our Skoal 
trademark in future periods.  Based on the 2024 annual impairment test, a hypothetical 1% increase to the discount rate used would have 
resulted in an impairment charge to the Skoal intangible asset of approximately $85 million.
While the estimated fair value of our e-vapor reporting unit exceeded its carrying value by approximately 28% ($0.3 billion), we 
continue to monitor several factors that could impact the carrying value of our e-vapor reporting unit’s goodwill, including the 
following:
▪
Altria and certain of our affiliates, including NJOY, are defendants in lawsuits alleging patent infringement based on the sale of
NJOY ACE in the United States.  On January 29, 2025, the ITC issued its final determination regarding the complaint filed by
JUUL against Altria and certain of our affiliates, including NJOY, finding that NJOY ACE infringes on JUUL’s patents and
issued an exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE in the United States.
The ITC’s determination is currently under a 60-day review period by the Office of the United States Trade Representative
which could reject the ITC’s determination.  If the Trade Representative does not affirmatively reject the ITC’s determination,
the determination will automatically become final and the ITC’s orders will take effect on March 31, 2025, or earlier if the
Trade Representative notifies the ITC of approval before the 60 days elapse.  The final exclusion order and cease-and-desist
orders can be appealed to the U.S. Court of Appeals for the Federal Circuit, but the final exclusion order and cease-and-desist
orders prohibiting the importation and sale of NJOY ACE would likely not be stayed during the pendency of such an appeal.
We continue to vigorously defend this litigation, including our motion filed in February 2025 seeking reconsideration of the
ITC’s determination on one of the four patents as discussed in Item 3. Legal Proceedings of this Form 10-K (“Item 3”).
▪
Additionally, sales of illicit flavored disposable e-vapor products continue to increase with limited effective enforcement
against these products, contributing to declines in pod-based e-vapor product volume, which negatively impacted NJOY ACE’s
volume growth in 2024.
We are pursuing pathways to minimize the disruption the ITC’s decision could cause.  NJOY is working on a product solution that 
addresses all of the patents at issue in the event the Trade Representative does not affirmatively reject the ITC’s determination.  
Additionally, NJOY is pursuing potential solutions with a pipeline of other alternative e-vapor products.  However, in the event the 
Trade Representative does not affirmatively reject the ITC’s determination, it is likely that NJOY will not be able to sell NJOY ACE in 
the United States until a product solution addressing all of the patents at issue in the ITC action has received the necessary regulatory 
approvals.
If we continue to experience unfavorable outcomes with respect to the patent infringement lawsuits and our related strategies, or if 
continued illicit e-vapor product sales or other factors result in a significantly different long-term outlook for NJOY’s volume growth 
rates versus projections, there may be a material adverse effect on the significant assumptions used in performing our valuation.  These 
adverse effects, including if NJOY’s actual revenue and income or long-term outlook are significantly unfavorable compared to 
forecasted performance used to estimate the fair value or if the discount rate used to estimate the fair value increases, could result in a 
25

material non-cash impairment of our e-vapor reporting unit’s goodwill or related definite-lived intangible assets (carrying value of $1.8 
billion and $1.1 billion, respectively, at December 31, 2024), or both, in future periods.  Based on our 2024 annual impairment test, a 
hypothetical 1% increase to the discount rate used to estimate the fair value of the e-vapor reporting unit would have resulted in an 
impairment charge of approximately $125 million.
We made various judgments, estimates and assumptions in determining the estimated fair values of our reporting units and indefinite-
lived assets, the most significant of which were volume, revenue, income, perpetual growth rates and discount rates in performing our 
annual impairment test of goodwill and indefinite-lived intangible assets.  All significant inputs used in the valuation are classified in 
Level 3 of the fair value hierarchy.  Our annual impairment test incorporated assumptions used in our long-term financial forecast, which 
is used by our management to evaluate business and financial performance, including allocating resources and evaluating results relative 
to setting employee compensation targets.  The assumptions incorporated the highest and best use of our reporting units and indefinite-
lived intangible assets and also included perpetual growth rates for periods beyond the long-term financial forecast.  The perpetual 
growth rates and discount rates used in performing the valuations ranged from 0% to 2% and 10.0% to 13.5%, respectively.  
Additionally, in determining these significant assumptions, we made judgments regarding the: (i) timing of effective enforcement against 
illicit flavored disposable e-vapor products; (ii) timing and receipt of regulatory authorizations of innovative tobacco products, including 
oral nicotine pouches and e-vapor products; (iii) long-term growth of innovative tobacco products, including oral nicotine pouches, and 
the related impact on the MST category; (iv) long-term growth of the e-vapor category; (v) conversion rates of illicit flavored disposable 
e-vapor consumers to pod-based systems and specifically, NJOY ACE; and (vi) ability of NJOY ACE to remain on the market.  Fair value
calculations are sensitive to changes in these estimates and assumptions, some of which relate to broader macroeconomic conditions
outside of our control.
Although our discounted cash flow analyses are based on assumptions that are considered reasonable and based on the best available 
information as of October 1, 2024, our annual impairment testing date, we used significant judgment in determining future cash flows. 
In addition to the judgments discussed above, the following factors also have the potential to impact our assumptions and thus the 
expected future cash flows and, therefore, our impairment conclusions: general macroeconomic conditions; governmental actions, 
including FDA regulatory actions and inaction; changes in category growth (decline) rates as a result of changing adult tobacco 
consumer preferences; success of planned new product expansions; competitive activity; and income and excise taxes.  For further 
discussion of these factors, see Operating Results by Business Segment - Business Environment below.
While our management believes that the estimated fair values of each reporting unit and indefinite-lived intangible asset at December 31, 
2024 are reasonable, actual performance in the short term or long term could be significantly different from forecasted performance, 
which could result in impairment charges in future periods.
During 2023, our quantitative annual impairment test of goodwill and indefinite-lived intangible assets resulted in no impairment 
charges.
For further discussion of goodwill and other intangible assets, including the impairment charge of the Skoal trademark in the second 
quarter of 2024, see Note 6.
▪
Investments in Equity Securities: At the end of each reporting period, we review our equity investments accounted for under
the equity method of accounting (ABI and Cronos) for impairment by comparing the fair value of each of our investments to their
carrying value.  If the carrying value of an investment exceeds its fair value and the loss in value is other than temporary, we consider
the investment impaired, reduce its carrying value to its fair value and record the impairment in the period identified.  We use certain
factors to make this determination, including (i) the duration and magnitude of the fair value decline, (ii) the financial condition and
near-term prospects of the investee and (iii) our intent and ability to hold our investment until recovery to its carrying value.
For further discussion of our investments in equity securities, see Note 8.
▪
Marketing Costs: Our businesses promote their products with consumer incentives, trade promotions and consumer
engagement programs.  These consumer incentive and trade promotion activities, which include discounts, coupons, rebates, in-store
display incentives and volume-based incentives, do not create a distinct deliverable and are, therefore, recorded as a reduction of
revenues.  We make consumer engagement program payments to third parties.  Our businesses expense these consumer engagement
programs, which include event marketing, as incurred and such expenses are included in marketing, administration and research costs in
our consolidated statements of earnings.  For interim reporting purposes, our businesses charge consumer engagement programs and
certain consumer incentive expenses to operations as a percentage of sales, based on estimated sales and related expenses for the full
year.
▪
Contingencies: As discussed in Note 20 and Item 3, legal proceedings covering a wide range of matters are pending or
threatened in various United States and foreign jurisdictions against Altria and certain of our subsidiaries, including PM USA and
NJOY, as well as certain respective indemnitees.  In 1998, PM USA and certain other tobacco product manufacturers entered into the
MSA with 46 states, the District of Columbia and certain United States territories to settle asserted and unasserted health care cost
recovery and other claims.  PM USA and certain other U.S. tobacco product manufacturers had previously entered into agreements to
settle similar claims brought by Mississippi, Florida, Texas and Minnesota (together with the MSA, “State Settlement Agreements”).
26

PM USA’s portion of ongoing adjusted payments is based on its relative share of the settling manufacturers’ domestic cigarette 
shipments, including roll-your-own cigarettes, in the year preceding that in which the payment is due.  PM USA’s obligations under the 
State Settlement Agreements to make quarterly payments with respect to settling plaintiffs’ attorneys’ fees ended in the fourth quarter of 
2024.  In addition, PM USA, Middleton and USSTC are subject to quarterly user fees imposed by the FDA as a result of the FSPTCA.  
Payments under the State Settlement Agreements and the FDA user fees are based on variable factors, such as volume, operating 
income, market share and inflation, depending on the subject payment.  Our subsidiaries account for the cost of the State Settlement 
Agreements and FDA user fees as a component of cost of sales.  Our subsidiaries recorded approximately $3.7 billion and $4.0 billion of 
charges to cost of sales for the years ended December 31, 2024 and 2023, respectively, in connection with the State Settlement 
Agreements and FDA user fees.
We record provisions in our consolidated financial statements for pending litigation when we determine that an unfavorable outcome is 
probable and the amount of the loss can be reasonably estimated.  At the present time, while it is reasonably possible that an unfavorable 
outcome in a case may occur, except to the extent discussed in Note 20 and Item 3: (i) management has concluded that it is not probable 
that a loss has been incurred in any pending litigation; (ii) management is unable to estimate the possible loss or range of loss that could 
result from an unfavorable outcome in any pending case; and (iii) accordingly, management has not provided any amounts in our 
consolidated financial statements for unfavorable outcomes, if any.  We expense litigation defense costs as incurred and include such 
costs in marketing, administration and research costs in our consolidated statements of earnings.
▪
Employee Benefit Plans: We provide a range of benefits to certain employees and retired employees, including pension,
postretirement health care and postemployment benefits.  We record annual amounts relating to these plans based on calculations
specified by GAAP, which include various actuarial assumptions as to discount rates, assumed rates of return on plan assets, mortality,
compensation increases, turnover rates and health care cost trend rates.  We review our actuarial assumptions on an annual basis and
make modifications to the assumptions based on current rates and trends when it is deemed appropriate to do so.  Any effect of the
modifications is generally amortized over future periods.
We recognize the funded status of our defined benefit pension and other postretirement plans on the consolidated balance sheets and 
record as a component of other comprehensive earnings (losses), net of deferred income taxes, the gains or losses and prior service costs 
or credits that have not been recognized as components of net periodic benefit cost (income).  We subsequently amortize the gains or 
losses and prior service costs or credits recorded as components of other comprehensive earnings (losses) into net periodic benefit cost 
(income) in future years.
Due to changes in market factors, our discount rates used to determine our pension plan and postretirement plan obligations increased to 
5.7% at December 31, 2024 from 5.3% and 5.2%, respectively, for these plans at December 31, 2023.  We presently anticipate net pre-
tax pension and postretirement income of approximately $15 million in 2025 versus net pre-tax income of $46 million in 2024.  This 
decrease is due primarily to lower expected income on plan assets and higher amortization of net unrecognized losses in 2025, partially 
offset by lower service and interest costs.  Assuming no change to the shape of the yield curve, a 50 basis point decrease (increase) in 
our discount rates would increase (decrease) our pension and postretirement expense by approximately $10 million.  Similarly, a 50 
basis point decrease (increase) in the expected return on plan assets would increase (decrease) our pension and postretirement expense 
by approximately $40 million.
For additional information see Note 18. Benefit Plans to our consolidated financial statements in Item 8 (“Note 18”).
▪
Income Taxes: Significant judgment is required in determining income tax provisions and in evaluating tax positions.  We
determine deferred tax assets and liabilities based on the difference between the financial statement and tax bases of assets and liabilities,
using enacted tax rates in effect for the year in which the differences are expected to reverse.  We record a valuation allowance when it is
more likely than not that some portion or all of a deferred tax asset will not be realized.  We determine the realizability of deferred tax
assets based on the weight of all available positive and negative evidence.  In reaching this determination, we consider the character of
the assets and the possible sources of taxable income of the appropriate character within the available carryback and carryforward
periods available under the tax law.
We recognize the financial statement benefit for uncertain income tax positions in our consolidated financial statements when it is more 
likely than not, based on the technical merits, that the position will be sustained upon examination by taxing authorities.  The amount 
recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.  For 
those income tax positions where it is more likely than not that a tax benefit will not be sustained, no tax benefit is recognized in the 
financial statements.  We recognize accrued interest and penalties associated with uncertain tax positions as part of the provision for 
income taxes in our consolidated statements of earnings.
We recognized income tax benefits and charges in the consolidated statements of earnings during 2024 and 2023 as a result of various 
tax events.
For additional information on income taxes, see Note 16. Income Taxes to our consolidated financial statements in Item 8 (“Note 16”).
27

Consolidated Operating Results
For the Years Ended December 31,
(in millions)
2024
2023
Net Revenues:
Smokeable products
$ 
21,204 
$ 
21,756 
Oral tobacco products
2,776 
2,667 
All other
38 
60 
Net revenues
$ 
24,018 
$ 
24,483 
Excise Taxes on Products:
Smokeable products
$ 
3,469 
$ 
3,869 
Oral tobacco products
105 
112 
Excise taxes on products
$ 
3,574 
$ 
3,981 
Operating Income:
OCI:
Smokeable products
$ 
10,821 
$ 
10,670 
Oral tobacco products
1,449 
1,722 
All other
(414)
(74)
Amortization of intangibles
(139)
(128)
General corporate expenses
(476)
(643)
Operating income
$ 
11,241 
$ 
11,547 
As discussed further in Note 17, our CODM reviews OCI, which is defined as operating income before general corporate expenses and 
amortization of intangibles, to evaluate the performance of, and allocate resources to, our segments.  Our management believes it is 
appropriate to disclose this measure to help investors analyze our business performance and trends.
The following table provides a reconciliation of adjusted net earnings and adjusted diluted EPS for the years ended December 31:
(in millions of dollars, except per share data)
Earnings 
before Income 
Taxes
Provision for 
Income 
Taxes
Net Earnings Diluted EPS
2024 Reported
$ 
13,658 $ 
2,394 $ 
11,264 $ 
6.54 
NPM Adjustment Items
(27) 
(7)
(20)
(0.01) 
Acquisition, disposition and integration-related items
(2,527) 
(665)
(1,862)
(1.08) 
Asset impairment, exit and implementation costs
422 
107 
315 
0.18 
Tobacco and health and certain other litigation items
101 
25 
76 
0.04 
ABI-related special items
2 
— 
2 
— 
Cronos-related special items
18 
3 
15 
0.01 
Income tax items
— 
969 
(969)
(0.56)
2024 Adjusted for Special Items
$ 
11,647 $ 
2,826 $ 
8,821 $ 
5.12 
2023 Reported
$ 
10,928 $ 
2,798 $ 
8,130 $ 
4.57 
NPM Adjustment Items
(50) 
(12)
(38)
(0.02) 
Acquisition, disposition and integration-related items
35 
9 
26 
0.01 
Tobacco and health and certain other litigation items 
430 
107 
323 
0.18 
Loss on disposition of JUUL equity securities
250 
— 
250 
0.14 
ABI-related special items
89 
19 
70 
0.03 
Cronos-related special items
29 
— 
29 
0.02 
Income tax items
— 
(32)
32
0.02 
2023 Adjusted for Special Items
$ 
11,711 $ 
2,889 $ 
8,822 $ 
4.95 
28

The following special items affected the comparability of statements of earnings amounts for the years ended December 31, 2024 and 
2023.
▪
NPM Adjustment Items: For a discussion of NPM Adjustment Items and a breakdown of these items by segment, see Health
Care Cost Recovery Litigation in Note 20 and NPM Adjustment Items in Note 17, respectively.
▪
Acquisition, Disposition and Integration-Related Items: We recorded a pre-tax gain of $2.7 billion upon the assignment of
the IQOS System commercialization rights to PMI in April 2024, for the year ended December 31, 2024.  For a discussion of the sale of
the IQOS System commercialization rights, see Note 6.
We recorded net pre-tax expenses of $176 million for the year ended December 31, 2024 related to the NJOY Transaction.  For further 
information on the costs incurred for the NJOY Transaction, see Note 3. Acquisition of NJOY to our consolidated financial statements in 
Item 8 (“Note 3”).
▪
Asset Impairment, Exit and Implementation Costs: We recorded a non-cash, pre-tax impairment of the Skoal trademark of
$354 million for the year ended December 31, 2024 in our oral tobacco products segment.  For further discussion, see Note 6.  In
addition, we recorded exit and implementation costs of $68 million related to the Initiative for the year ended December 31, 2024.  For a
breakdown of these costs by segment, see Note 7.
▪
Tobacco and Health and Certain Other Litigation Items: For a discussion of tobacco and health and certain other litigation
items and a breakdown of these costs by segment, see Note 20 and Tobacco and Health and Certain Other Litigation Items in Note 17,
respectively.
▪
Loss on Disposition of JUUL Equity Securities: We recorded a non-cash, pre-tax loss of $250 million related to the
disposition of our former investment in JUUL for the year ended December 31, 2023 as (income) losses from investments in equity
securities in our consolidated statement of earnings.  We recorded a corresponding adjustment to the JUUL tax valuation allowance in
2023.  For further discussion, see Note 8 and Note 16.
▪
ABI-Related Special Items: We recorded net pre-tax expense of $2 million from our investment in ABI for the year ended
December 31, 2024, which consists primarily of mark-to-market losses on certain ABI financial instruments associated with its share
commitments, mostly offset by a gain related to the ABI Transaction.  For further information on the gain related to the ABI
Transaction, see Note 8.
We recorded net pre-tax losses of $89 million from our investment in ABI for the year ended December 31, 2023, consisting primarily of 
mark-to-market losses on certain ABI financial instruments associated with its share commitments and a loss on ABI’s sale of certain 
brands and associated assets in the United States.
The ABI-related special items include our respective share of the amounts recorded by ABI and additional adjustments related to (i) the 
conversion of ABI-related special items from international financial reporting standards to GAAP and (ii) adjustments to our investment 
required under the equity method of accounting.
▪
Cronos-Related Special Items: We recorded pre-tax losses of $29 million for Cronos-related special items for the year ended
December 31, 2023, substantially all of which related to our share of special items recorded by Cronos.  We recorded a corresponding
adjustment to the Cronos tax valuation allowance.
▪
Income Tax Items: We recorded income tax items of $969 million for the year ended December 31, 2024, due primarily to an
income tax benefit from partial releases of valuation allowances on JUUL-related losses in connection with an agreement reached in
October 2024 with the Internal Revenue Service (“IRS”) and in connection with the ABI Transaction.  For further discussion, see Note
16.
We recorded income tax items of $32 million for the year ended December 31, 2023, due primarily to tax expense associated with a tax 
basis adjustment related to our investment in ABI.
2024 Compared with 2023
Net revenues, which include excise taxes billed to customers, decreased $465 million (1.9%), due primarily to lower net revenues in the 
smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment.
Cost of sales decreased $141 million (2.3%), due primarily to lower shipment volume in our smokeable products segment, partially 
offset by higher per unit settlement charges and higher manufacturing costs in our smokeable products segment and higher NJOY costs.
Excise taxes on products decreased $407 million (10.2%), due primarily to lower shipment volume in our smokeable products segment.
Marketing, administration and research costs were unchanged compared to 2023 as higher costs, including NJOY and other costs in 
support of our Vision and 2024 costs related to the Initiative, were offset by lower general corporate expenses.  The lower general 
corporate expenses were due primarily to lower charges to resolve certain JUUL-related litigation and the 2023 settlement of the 
shareholder derivative lawsuits, partially offset by higher net acquisition-related costs primarily associated with the NJOY Transaction 
and 2024 transaction costs from the ABI Transaction.  See Note 3, Note 8 and Note 20 for a discussion of litigation items.
29

Operating income decreased $306 million (2.7%), due primarily to lower OCI (which includes a non-cash impairment of the Skoal 
trademark in our oral tobacco product segment and costs related to the Initiative), partially offset by lower general corporate expenses.
Interest and other debt expense, net increased $48 million (4.9%), due primarily to 2023 interest income associated with the sale of the 
IQOS System commercialization rights and unfavorable NPM Adjustment Items, partially offset by 2023 interest expense and fees for 
the term loan facility associated with the NJOY Transaction.  For additional information regarding the sale of the IQOS System 
commercialization rights, see Note 6.
Net periodic benefit income, excluding service cost, decreased by $25 million (19.7%), due primarily to lower income on plan assets and 
higher amortization of net unrecognized losses in 2024.  For additional information, see Note 18.
(Income) losses from investments in equity securities, which were favorable $409 million (100+%), were positively impacted by the 
2023 loss on the disposition of our JUUL equity securities and favorable results in 2024 from our investment in ABI (due primarily to 
our gain on the ABI Transaction).
Provision for income taxes decreased $404 million (14.4%), due primarily to favorable tax items, partially offset by higher earnings 
before income taxes.  For additional information, see Note 16.
Reported net earnings of $11,264 million increased $3,134 million (38.5%), due primarily to the gain on the sale of the IQOS System 
commercialization rights, favorable income tax items and favorable results from our investments in equity securities, partially offset by 
lower operating income.  Reported basic and diluted EPS of $6.54, each increased by 43.1% due to higher reported net earnings and 
fewer shares outstanding.
Adjusted net earnings of $8,821 million were essentially unchanged compared to 2023, as lower OCI and lower net periodic benefit 
income, excluding service costs, was offset by a lower adjusted tax rate.  Adjusted diluted EPS of $5.12 increased by 3.4%, due to fewer 
shares outstanding.
Operating Results by Business Segment
Business Environment
Summary
The U.S. tobacco industry faces a number of business and legal challenges that have materially adversely affected and may continue to 
materially adversely affect our business, results of operations, cash flows or financial position or our ability to achieve our Vision.  
These challenges, some of which are discussed in more detail in Note 20, Item 1A and Item 3, include:
▪
pending and threatened litigation and bonding requirements;
▪
restrictions and requirements imposed by the FSPTCA and restrictions and requirements (and related enforcement actions) that
have been, and in the future will be, imposed by the FDA;
▪
the FDA’s failure to effectively address illicit tobacco products on the market, including illicit e-vapor and oral nicotine pouch
products;
▪
illicit trade in tobacco products, including cigarettes, e-vapor products and oral nicotine pouch products;
▪
actual and proposed excise tax increases, as well as changes in tax structures and tax stamping requirements;
▪
bans and restrictions on tobacco use imposed by governmental entities and private establishments and employers;
▪
other federal, state and local government actions, including:
▪
restrictions on the sale of certain tobacco products, the sale of tobacco products by certain retail establishments, the sale of
tobacco products with characterizing flavors and the sale of tobacco products in certain package sizes;
▪
additional restrictions on the advertising and promotion of tobacco products;
▪
other actual and proposed tobacco-related legislation and regulation; and
▪
governmental investigations;
▪
reductions in consumption levels of cigarettes and MST products resulting in lower shipment volumes;
▪
increased efforts by tobacco control advocates and other private sector entities (including retail establishments) to further
restrict the availability and use of tobacco products or the ability to communicate with consumers through third-party digital
platforms;
▪
changes in adult tobacco consumer purchase behavior, which is influenced by various factors such as macroeconomic
conditions (including inflation), the proliferation of illicit disposable e-vapor products, excise taxes and price gap relationships,
each of which may result in adult tobacco consumers switching to lower-priced tobacco products and lower shipment volumes;
▪
the highly competitive nature of all tobacco categories, including competitive disadvantages related to the impact on cigarette
prices due to the settlement of certain healthcare cost recovery litigation and the proliferation of innovative tobacco products,
such as e-vapor and oral nicotine pouch products;
30

▪
the proliferation of products using nicotine analogues that are designed to imitate the effects of nicotine but are not subject to
the FDA regulatory framework for tobacco products; and
▪
potential adverse changes in prices, availability and quality of tobacco, other raw materials and component parts, including as a
result of changes in macroeconomic, geopolitical and climate and environmental conditions.
In addition to and in connection with the foregoing, evolving adult tobacco consumer preferences continue to impact the tobacco 
industry, including negatively impacting cigarette and MST shipment volumes.  We believe that a significant number of adult tobacco 
consumers switch among tobacco categories, use multiple forms of tobacco products and try innovative tobacco products, such as e-
vapor products and oral nicotine pouches.  As innovative smoke-free products evolve to better address the preferences of adult tobacco 
consumers, these consumers continue to transition from cigarettes and MST products to exclusive use of innovative smoke-free tobacco 
product alternatives, which aligns with our Vision.  As a result, long-term trends in the overall nicotine space are improving.  Industry 
equivalized nicotine volumes increased for the second consecutive year in 2024 and grew by a compounded annual growth rate of 
approximately 2% over the past five years.
We work to meet these evolving adult tobacco consumer preferences over time by developing, manufacturing, marketing and 
distributing products both within and outside the United States through innovation and other growth strategies (including, where 
appropriate, arrangements with, or investments in, third parties and acquisitions).
We estimate that, when adjusted for calendar differences and trade inventory movements, total estimated domestic cigarette industry 
volume declined by 8% in the fourth quarter of 2024 and 9% for the full year.  PM USA reported domestic cigarette volumes declined 
by 8.8% in the fourth quarter of 2024 and 10.2% for the full year.  When adjusted for calendar differences and trade inventory 
movements, PM USA volumes for the fourth quarter of 2024 and the full year each declined by an estimated 11%.  In the fourth quarter, 
Marlboro share of the total cigarette category was 41.3%, a decrease of 1.0 share point versus the prior year and 0.3 share points in the 
fourth quarter.  Marlboro share performance is discussed further in the Operating Results - Smokeable Products Segment below.
We have been monitoring shifts in adult tobacco consumer preferences and their effects on cigarette industry decline rates.  As a result, 
we believe that the decline in adult smokers, excluding any cross category movement, resulted in an estimated 2.5% decline in cigarette 
industry volume over the 12 months ended December 31, 2024.  We estimate that cross-category movement contributed to cigarette 
industry volume declines in a range of approximately 3% to 4% over the 12 months ended December 31, 2024.
For the 12 months ended December 31, 2024, we estimate the e-vapor category grew approximately 30% versus the prior 12-month 
period, driven by the growth of illicit flavored disposable e-vapor products.  We estimate that illicit products now represent more than 
60% of the e-vapor category.  These illicit disposable e-vapor products are largely distributed through non-traditional retail channels 
(including e-commerce and vape retail channels), making them more difficult to track.  In addition, we believe illicit cigarettes are 
becoming more prevalent in the United States, based on the results of discarded pack studies we conducted in select geographies.  We 
believe the FDA’s inadequate enforcement and slow pace of smoke-free product authorizations enables bad actors to disregard 
regulation and illicit products to proliferate.  Through our competitive intelligence tracking, we continue to monitor these growing trends 
and evaluate the impacts on the overall nicotine and tobacco categories.
For the fourth quarter of 2024, reported shipment volume of NJOY consumables (including NJOY ACE and NJOY DAILY) was 
approximately 12.8 million units, and NJOY device shipment volume was approximately 1.1 million units.  The NJOY share of the pod-
based e-vapor category reached 6.4% in the fourth quarter of 2024, an increase of 0.2 share points sequentially and 2.8 share points 
versus the fourth quarter of 2023.
The U.S. nicotine pouch category continued to grow significantly throughout the fourth quarter of 2024 to 45.7% of the U.S. oral 
tobacco category, an increase of 9.6 share points versus the fourth quarter of 2023.  on! maintained year-over-year share momentum 
through the fourth quarter of 2024 to achieve 8.9% of the total oral tobacco category, an increase of 2.0 share points versus the fourth 
quarter of 2023 and unchanged sequentially.
For the fourth quarter 2024, the traditional smokeless category (including MST) share of the total oral tobacco category declined to 
54.3%, down 9.6 share points versus the fourth quarter of 2023.  Copenhagen had an oral tobacco category share of 18.1% for the fourth 
quarter of 2024, a decrease of 3.6 share points when compared to the fourth quarter of 2023.  We continue to track the growth of nicotine 
pouch volumes and the related impact on the size of the MST category.  Decreases in the size of the MST category could impact the 
carrying value of our assets, such as our smokeless tobacco product goodwill and trademarks.  For example, in the second quarter of 
2024, we recorded a non-cash, pre-tax impairment on the value of the Skoal trademark.
Throughout the full year 2024, U.S. adult tobacco consumers remained under pressure largely due to the compounding effects of high 
prices exceeding overall wage growth.  In addition, consumer credit and credit card delinquency rates rose to the highest levels since 
2011 in the first half of 2024.  While recent reports indicate that consumer credit and delinquency rates are beginning to moderate, these 
rates remain at historically high levels.  Although the monthly rate of inflation stabilized during the year, headwinds continued for U.S. 
adult tobacco consumers.  Gas prices throughout the fourth quarter of 2024 experienced seasonal declines, averaging $3.02 per gallon for 
the month of December 2024.  While gas prices were lower than in the prior year, they remained consistently above $3.00 per gallon 
throughout 2024.
31

Discretionary income pressures on adult tobacco consumers have influenced discount brand share performance.  For the fourth quarter of 
2024, the discount share of the cigarette category reached 30.4%, an increase of 0.6 share points sequentially and an increase of 1.7 share 
points versus the fourth quarter of 2023.
We continue to monitor the evolving regulatory, macroeconomic and consumer dynamics within our business environment for impacts 
on our businesses.  Changes in these and other conditions could have a material adverse effect on our business, results of operations, 
cash flows or financial position.
FSPTCA and FDA Regulation
▪
The Regulatory Framework: The FSPTCA and its related regulations establish broad FDA regulatory authority over all
tobacco products and, among other provisions:
▪
impose restrictions on the advertising, promotion, sale and distribution of tobacco products (see Final Tobacco Marketing
Rule below);
▪
establish pre-market review pathways for new and modified tobacco products (see Pre-Market Review Pathways for
Tobacco Products and Market Authorization Enforcement below);
▪
prohibit any express or implied claims that a tobacco product is or may be less harmful than other tobacco products without
FDA authorization;
▪
authorize the FDA to impose tobacco product standards that are appropriate for the protection of the public health (see
Potential Product Standards below); and
▪
equip the FDA with a variety of investigatory and enforcement tools, including the authority to inspect product
manufacturing and other facilities (see Investigation and Enforcement below).
The FSPTCA also bans descriptors such as “light,” “low” or “mild” when used as descriptors of modified risk, unless expressly 
authorized by the FDA.
Effective April 2022, the U.S. Congress expanded the statutory definition of tobacco products to include products containing nicotine 
derived from any source, including synthetic nicotine.  See Pre-Market Review Pathways for Tobacco Products and Market 
Authorization Enforcement below for additional information on the effects of the statutory change.  Currently, however, the statutory 
definition of tobacco products does not cover products containing nicotine analogues, which are designed to imitate the effects of 
nicotine.  As a result, products containing nicotine analogues are not subject to the FDA regulatory framework for tobacco products, 
including the requirements that manufacturers submit a PMTA to, and receive an MGO from, the FDA before marketing such products 
in the United States.
▪
Final Tobacco Marketing Rule: As required by the FSPTCA, in March 2010, the FDA promulgated a wide range of
advertising and promotion restrictions for cigarettes and smokeless tobacco(1) products (the “Final Tobacco Marketing Rule”).  The May
2016 deeming regulations amended the Final Tobacco Marketing Rule to expand specific provisions to all tobacco products, including
cigars, pipe tobacco and e-vapor and oral nicotine products containing tobacco-derived nicotine or other tobacco derivatives.
The Final Tobacco Marketing Rule, as amended, among other things:
▪
restricts the use of non-tobacco trade and brand names on cigarettes and smokeless tobacco products;
▪
prohibits sampling of all tobacco products except that sampling of smokeless tobacco products is permitted in qualified
adult-only facilities;
▪
prohibits the sale or distribution of items such as hats and tee shirts with cigarette or smokeless tobacco brands or logos;
▪
prohibits cigarettes and smokeless tobacco brand name sponsorship of any athletic, musical, artistic or other social or
cultural event, or any entry or team in any event; and
▪
requires the development by the FDA of graphic warnings for cigarettes, establishes warning requirements for other
tobacco products and gives the FDA the authority to require new warnings for any type of tobacco product (see FDA
Regulatory Actions - Graphic Warnings below).
Subject to certain limitations arising from legal challenges, the Final Tobacco Marketing Rule took effect in June 2010 for cigarettes and 
smokeless tobacco products, in August 2016 for all other tobacco products, including e-vapor and oral nicotine pouch products 
containing tobacco-derived nicotine, and in April 2022 for tobacco products, including e-vapor and oral nicotine pouch products, that 
contain nicotine from any source other than tobacco, such as synthetic nicotine.  The Final Tobacco Marketing Rule currently does not 
apply to products containing nicotine analogues.
▪
Rulemaking and Guidance: From time to time, the FDA issues proposed regulations and guidance, which may be issued in
draft or final form, that generally involve public comment and may include scientific review.  The FDA also may request comments on
(1) “Smokeless tobacco,” as used in this section of this Form 10-K, refers to smokeless tobacco products first regulated by the FDA in 2009, including
MST.  It excludes oral nicotine pouches, which were first regulated by the FDA in 2016.
32

broad topics through an Advanced Notice of Proposed Rulemaking (“ANPRM”).  We actively engage with the FDA to develop and 
implement the FSPTCA’s regulatory framework, including submission of comments to various FDA policies and proposals and 
participation in public hearings and engagement sessions.
The FDA’s implementation of the FSPTCA and related regulations and guidance also may have an impact on enforcement efforts by 
states, territories and localities of their laws and regulations as well as of the State Settlement Agreements (see State Settlement 
Agreements below).  Such enforcement efforts may adversely affect our operating companies’ ability to market and sell tobacco products 
in those states, territories and localities.
▪
FDA’s Five-Year Strategic Plan for Tobacco and Nicotine Regulation: In December 2023, the FDA released its five-year
strategic plan to address concerns raised by the Reagan-Udall Foundation’s operational evaluation of the FDA’s Center for Tobacco
Products.  The Reagan-Udall report urged the FDA to clearly define product pathways, accelerate PMTA decision making, address the
need for health risk communications to tobacco consumers and take enforcement actions against manufacturers and products that violate
the law.
The FDA’s five-year strategic plan lists five goals:
▪
develop, advance and communicate comprehensive and impactful tobacco regulations and guidance;
▪
ensure timely, clear and consistent product application review;
▪
strengthen compliance of regulated industry using all available tools, including robust enforcement actions;
▪
enhance knowledge and understanding of the risks associated with tobacco product use; and
▪
advance operational excellence.
Although the FDA, in conjunction with other federal entities, has increased enforcement activity, insufficient actions against 
manufacturers, distributors and retailers of certain product categories that violate the law, including certain disposable and flavored e-
vapor products, certain oral nicotine pouch products and products targeted to minors, have allowed such products to proliferate on the 
market.  In addition, the FDA’s failure to clearly define product pathways and accelerate PMTA decision making has resulted in a 
market with few authorized smoke-free products available to adult tobacco consumers.
▪
Pre-Market Review Pathways for Tobacco Products and Market Authorization Enforcement: The FSPTCA permits the
sale of tobacco products on the market as of February 15, 2007 and not subsequently modified (“Pre-existing Tobacco Products”) and
new or modified products authorized through the PMTA, Substantial Equivalence (“SE”) or SE Exemption pathways.  Subsequent FDA
rules also provide a Supplemental PMTA pathway designed to increase the efficiency of submission and review for modified versions of
previously authorized products.
The FDA pre-market authorization enforcement policy varies based on product type and date of availability on the market, specifically:
▪
Pre-existing Tobacco Products are exempt from the pre-market authorization requirement;
▪
cigarette and smokeless tobacco products that were modified or first introduced into the market between February 15, 2007
and March 22, 2011 are generally considered “Provisional Products” for which SE reports were required to be filed by
March 22, 2011.  These reports must demonstrate that the product has the same characteristics as a product on the market
as of February 15, 2007 or to a product previously determined to be substantially equivalent, or has different characteristics
but does not raise different questions of public health;
▪
tobacco products that were first regulated by the FDA in 2016, including cigars, e-vapor products and oral nicotine pouches
that are not Pre-existing Tobacco Products, are generally products for which either an SE report or PMTA needed to be
filed by September 9, 2020; and
▪
tobacco products containing nicotine from any source other than tobacco (e.g., synthetic nicotine) that were on the market
between March 15, 2022 and April 14, 2022 and are not Pre-existing Tobacco Products are generally products for which a
manufacturer must have filed a PMTA by May 14, 2022.  A manufacturer was permitted to keep such a product on the
market until July 13, 2022 provided that a PMTA was filed by May 14, 2022.  Thereafter, unless the FDA granted the
product a marketing order, the product is subject to possible FDA enforcement.
Modifications to currently marketed products, including modifications that result from, for example, changes to the quantity of tobacco 
product(s) in a package, a manufacturer being unable to acquire ingredients or a supplier or contract manufacturer being unable to 
maintain the consistency required in ingredients or manufacturing processes, could trigger the FDA’s pre-market review processes.  
Additionally, a manufacturer may be unable to maintain consistency in manufacturing processes as it increases the scale of its 
manufacturing operations in response to market expansion or product introduction.  These circumstances could cause a manufacturer to 
receive (i) a “not substantially equivalent” determination or (ii) a denial or withdrawal of a PMTA, either of which could result in a 
product being removed from the market.  In addition, new scientific data continues to be developed relating to innovative tobacco 
products, which could impact the FDA’s determination as to whether a product is, or continues to be, appropriate for the protection of 
public health and could, therefore, result in the removal of one or more products from the market.  Any such actions affecting our 
33

operating companies’ products could have a material adverse impact on our business, results of operations, cash flows or financial 
position.
Products Regulated in 2009: Most cigarette and smokeless tobacco products currently marketed by PM USA and USSTC are 
“Provisional Products.”  PM USA and USSTC timely submitted SE reports for these Provisional Products and have received SE 
determinations on certain Provisional Products.  Those products that were found by the FDA to be not substantially equivalent (certain 
smokeless tobacco products) had been discontinued for business reasons prior to the FDA’s determinations; therefore, those 
determinations did not impact business results.  PM USA and USSTC have other Provisional Products that continue to be subject to the 
FDA’s pre-market review process.  In the meantime, they can continue marketing these products unless the FDA determines that a 
specific Provisional Product is not substantially equivalent.
In addition, the FDA has communicated that it will not review a certain subset of Provisional Product SE reports and that the products 
that are the subject of those reports can continue to be legally marketed without further FDA review.  PM USA and USSTC have 
Provisional Products included in this subset of products.
While we believe PM USA’s and USSTC’s current Provisional Products meet the statutory requirements of the FSPTCA, we cannot 
predict how the FDA will ultimately apply law, regulation and guidance to their various SE reports.  Should PM USA or USSTC receive 
unfavorable determinations on any SE reports currently pending with the FDA, we believe PM USA and USSTC can replace the vast 
majority of these product volumes with other FDA authorized products or with Pre-existing Tobacco Products.
Cigarette and smokeless tobacco products introduced into the market or modified after March 22, 2011 are “Non-Provisional Products” 
and must receive a marketing order from the FDA prior to being offered for sale.  Marketing orders for Non-Provisional Products may 
be obtained by filing an SE report, a PMTA or using another pre-market pathway established by the FDA.  PM USA and USSTC may 
not be able to obtain a marketing order for non-provisional products because the FDA may determine that any such product does not 
meet the statutory requirements for approval.
Products Regulated in 2016: Manufacturers of products first regulated by the FDA in 2016, including cigars, oral nicotine pouches and 
e-vapor products, that were on the market as of August 8, 2016 and not subsequently modified must have filed an SE report or a PMTA
by the filing deadline of September 9, 2020 in order for their products to remain on the market.  These products can remain on the
market during FDA review through court-allowed, case-by-case discretion, so long as the report or application was timely filed with the
FDA.  In September 2022, the FDA represented that it had resolved more than 99% of the timely applications it had received, the vast
majority of which were for e-vapor products and resulted in denials.  A number of the denials are subject to challenges initiated by the
affected manufacturers.  For those products still under FDA review, it is uncertain when and for how long the FDA may permit
continued marketing and sale of those products pursuant to its case-by-case discretion.  For products (new or modified) not on the
market as of August 8, 2016, manufacturers must file an SE report or a PMTA and receive FDA authorization prior to marketing and
selling the product.
Helix submitted PMTAs for on! oral nicotine pouches in May 2020 and PMTAs for on! PLUS oral nicotine pouches in tobacco, mint 
and wintergreen flavors in June 2024.  As of February 24, 2025, the FDA has not issued marketing order decisions for any on! or on! 
PLUS products.
As of February 24, 2025, Middleton has received marketing orders or exemptions that cover over 99% of its cigar product volume.
In October 2021, the FDA authorized the marketing and sale of four of USSTC’s Verve oral nicotine products, including Green Mint and 
Blue Mint varieties, representing the first flavored product authorizations issued by the FDA for newly deemed innovative products.  
These products are not currently marketed or sold.
In March 2023, the FDA authorized USSTC to communicate a modified risk claim about its Copenhagen Classic Snuff MST product.  
This product is not currently marketed or sold.  The authorized claim for Copenhagen Classic Snuff is “IF YOU SMOKE, CONSIDER 
THIS:  Switching completely to this product from cigarettes reduces risk of lung cancer.”  In February 2025, USSTC filed a notice with 
the FDA withdrawing its modified risk application.
As a result of our June 2023 acquisition of NJOY Holdings, we gained full global ownership of NJOY’s e-vapor product portfolio, 
including NJOY ACE, a pod-based e-vapor product with an MGO from the FDA, and NJOY DAILY, which also has an MGO.  In June 
2024, NJOY received MGOs with respect to two NJOY ACE menthol products and two NJOY DAILY menthol products.  In May 2024, 
NJOY submitted a supplemental PMTA to the FDA to commercialize and market the NJOY ACE 2.0 device, which leverages 
Bluetooth® connectivity to incorporate access restriction technology designed to prevent underage use by authenticating the user before 
unlocking the device.  Also in May 2024, NJOY re-submitted PMTAs for blueberry and watermelon flavored pod-based e-vapor 
products that work exclusively with the Bluetooth®-enabled NJOY ACE 2.0 device.  These products previously received marketing 
denial orders (“MDOs”) on the basis of FDA concerns regarding underage use.
Post-Market Surveillance: Manufacturers that receive MGOs must adhere to the FDA post-market record keeping and reporting 
requirements, as detailed in market orders and in the final PMTA rule.  The requirements include prior notification of marketing 
activities.  The FDA may amend requirements of an MGO or withdraw the MGO based on this information if, among other reasons, it 
determines that the continued marketing of the products is no longer appropriate for the protection of the public health.
34

Effect of Adverse FDA Determinations: FDA review time frames have varied.  It is therefore difficult to predict the duration of FDA 
reviews of SE reports or PMTAs.  An unfavorable determination on an application, the withdrawal by the FDA of a prior MGO or other 
changes in FDA regulatory requirements could result in the removal of products from the market.  A “not substantially equivalent” 
determination, a denial of a PMTA or an MGO withdrawal by the FDA on one or more products (which would require the removal of 
the product or products from the market) could have a material adverse impact on our business, results of operations, cash flows or 
financial position.  Also, adverse FDA determinations on innovative tobacco products could have a material adverse effect on our 
innovative tobacco businesses and our ability to achieve our Vision.
▪
FDA Regulatory Actions
▪
Graphic Warnings: In March 2020, the FDA issued a final rule requiring 11 textual warnings accompanied by color graphics
depicting certain negative health consequences of smoking on cigarette packaging and advertising.  PM USA and other
cigarette manufacturers filed lawsuits challenging the final rule on substantive and procedural grounds.  In December 2022, the
U.S. District Court for the Eastern District of Texas found in favor of cigarette manufacturers in one such suit and blocked the
rule, finding it unconstitutional on the basis that it compelled speech in violation of the First Amendment.  The FDA appealed
the decision, and, in March 2024, the U.S. Court of Appeals for the Fifth Circuit reversed the trial court and remanded the case
for further proceedings.  In August 2024, the cigarette manufacturers in the suit petitioned the U.S. Supreme Court to review the
case, which the U.S. Supreme Court declined to do in November 2024.
In January 2025, the U.S. District Court for the Eastern District of Texas found in favor of cigarette manufacturers that had
challenged the final rule on the basis that the FDA exceeded its statutory authority by requiring cigarette packaging and
advertising to contain 11 specific warnings when it only had the authority to require nine.  In its ruling, the court granted a
preliminary injunction staying the FDA’s enforcement of the rule against all cigarette manufacturers pending further litigation.
In December 2024, PM USA and several Georgia co-plaintiffs filed suit against the FDA in the U.S. District Court for the
Southern District of Georgia, challenging the final rule on substantive and procedural grounds.  Briefing is ongoing, and a
hearing on PM USA’s request to enjoin the rule is set for April 2025.
▪
Underage Access and Use of Certain Tobacco Products: The FDA announced regulatory actions in September 2018 to address
underage access to and use of e-vapor products.  We have engaged with the FDA on this topic and have reaffirmed to the FDA
our ongoing and long-standing commitment to preventing underage use.  For example, we advocated raising the minimum legal
age to purchase all tobacco products to 21 at the federal and state levels to further address underage use, which is now federal
law.  We continue to advocate in states that have not yet raised the minimum legal age to purchase all tobacco products to 21.
See Federal, State and Local Legislation to Increase the Legal Age to Purchase Tobacco Products below for further discussion.
Additionally, the FDA issued final guidance in April 2020, stating that it intended to prioritize enforcement action against
certain product categories, including pod-based, flavored e-vapor products and products targeted to minors.  More recently, the
FDA has taken limited  action aimed at manufacturers and retailers of certain disposable flavored e-vapor products.  However,
despite some enforcement activity, insufficient actions against manufacturers, distributors and retailers of certain product
categories that violate the law, including certain disposable and flavored e-vapor products, certain oral nicotine pouch products
and products targeted to minors, have allowed such products to proliferate on the market.
▪
E-Vapor Products: As of February 24, 2025, many manufacturers of menthol and other flavored e-vapor products have received
MDOs for failure to provide sufficiently strong product-specific scientific evidence to demonstrate that the benefit of their
products to adult smokers overcomes the risk that their products pose to youth.  The FDA has communicated in these MDOs
that vapor products with non-tobacco flavors present unique questions relevant to the FDA’s “Appropriate for the Protection of
Public Health” standard and that successful applications require strong, product-specific evidence.  A number of these
manufacturers are challenging the MDOs for their products.  In January 2024, the U.S. Court of Appeals for the Fifth Circuit
ruled that the FDA process and procedure for addressing an e-vapor PMTA violated federal law and that, among other things,
the FDA failed to give the manufacturer plaintiff fair notice of, and repeatedly changed positions with respect to, the
information required to obtain a PMTA.  The court decided the case en banc, with all judges on the court hearing the case.  In
July 2024, the U.S. Supreme Court agreed to review the U.S. Court of Appeals for the Fifth Circuit’s decision, and the case was
argued before the U.S. Supreme Court in December 2024.  Other U.S. Courts of Appeals have upheld adverse FDA
determinations, and there are pending requests that the U.S. Supreme Court review these decisions.
▪
Potential Product Standards
▪
Nicotine in Cigarettes and Other Combustible Tobacco Products: In March 2018, the FDA issued an ANPRM seeking
comments on the potential public health benefits and any possible adverse effects of lowering nicotine in combustible cigarettes
to non-addictive or minimally addictive levels.  In January 2025, the FDA proposed a tobacco product standard that would
establish a maximum nicotine level in cigarettes and certain other combustible tobacco products (including little cigars,
cigarillos and most large cigars) significantly lower than the average concentration in these products currently on the market
with the aim of making such products minimally or non-addictive.  The proposed rule does not apply to e-vapor products,
35

nicotine pouches, heated tobacco products, MST products or premium cigars.  The proposed rule is subject to the Trump 
Administration’s January 2025 executive order pausing all federal agency rulemaking for 60 days.  Following the 60-day pause, 
the proposed product standard, if not withdrawn, may proceed through the rulemaking process, including the solicitation of 
public comment, which we believe would take multiple years to complete.
▪
Flavors in Tobacco Products: In April 2022, the FDA issued two proposed product standards: (i) banning menthol in cigarettes
and (ii) banning all characterizing flavors (including menthol) in cigars.  We submitted comments during the notice-and-
comment period.  In October 2023, the FDA submitted the two proposed product standards to the White House Office of
Management and Budget for review.  In April 2024, the FDA announced the indefinite delay of a decision on the menthol ban,
citing the high volume of feedback received during the notice-and-comment period.  In January 2025, the Trump
Administration withdrew the two proposed product standards from the Office of Management and Budget (“OMB”) and sent
them back to the FDA.
▪
N-nitrosonornicotine (“NNN”) in Smokeless Tobacco: In January 2017, the FDA proposed a product standard for NNN levels
in finished smokeless tobacco products.
If any one or more of the foregoing potential product standards were to become final and was appealed and upheld in the courts, it could 
have a material adverse effect on our business, results of operations, cash flows or financial position, including a material adverse effect 
on the carrying value of certain of our assets such as our cigar trademarks.
▪
Tobacco Product Manufacturing Practices: In March 2023, the FDA, pursuant to the requirements of the FSPTCA, issued a
proposed rule setting forth requirements for tobacco product manufacturers regarding the manufacture, design, packing and
storage of their products.  This proposed rule establishes a framework of tobacco product manufacturing practices, including
by:
▪
establishing tobacco product design and development controls;
▪
ensuring that finished and bulk tobacco products are manufactured according to established specifications;
▪
minimizing the manufacture and distribution of tobacco products that do not meet specifications;
▪
requiring manufacturers to take appropriate measures to prevent contamination of tobacco products;
▪
requiring investigation and identification of products that do not meet specifications and requiring manufacturers to
institute appropriate corrective actions, such as a recall; and
▪
establishing the ability to trace all components or parts, ingredients, additives and materials, as well as each batch of
finished or bulk tobacco products, to aid in investigations of those that do not meet specifications.
We engaged with the FDA through the rulemaking process, including during the notice-and-comment period, which closed in October 
2023.  OMB currently lists the rule as a long-term action.  If the proposed rule were to take effect, our operating companies could 
experience increased costs to comply with the rule.
▪
Impact on Our Business; Compliance Costs and User Fees: Additional FDA regulatory actions under the FSPTCA could
have a material adverse effect on our business, results of operations, cash flows or financial position in various ways.  For
example, actions (or inaction) by the FDA could:
▪
impact the consumer acceptability of tobacco products;
▪
discontinue, delay or prevent the sale or distribution of existing, new or modified tobacco products;
▪
limit adult tobacco consumer choices;
▪
impose restrictions on communications with adult tobacco consumers;
▪
create a competitive advantage or disadvantage for certain tobacco companies;
▪
impose additional manufacturing, labeling or packaging requirements;
▪
impose additional restrictions at retail;
▪
result in increased illicit trade in tobacco products; and
▪
otherwise significantly increase the cost of doing business.
The FSPTCA imposes user fees on cigarette, cigarette tobacco, smokeless tobacco, cigar and pipe tobacco manufacturers and importers 
to pay for the cost of regulation and other matters.  The FSPTCA does not impose user fees on e-vapor products or oral nicotine pouch 
manufacturers.  The cost of the FDA user fee is allocated first among tobacco product categories subject to FDA user fees and then 
among manufacturers and importers within each respective category based on their relative market shares, all as prescribed by the 
FSPTCA and FDA regulations.  Payments for user fees are adjusted for several factors, including market share and industry volume.  
See Liquidity and Capital Resources - Payments Under State Settlement Agreements and FDA Regulation below for a discussion of our 
FDA user fee payments.  In addition, our operating companies’ compliance with the FSPTCA’s regulatory requirements has resulted, 
and will continue to result, in additional costs.  The amount of additional compliance and related costs has not been material in any given 
quarter or year-to-date period but could become material, either individually or in the aggregate.  The failure to comply with FDA 
36

regulatory requirements, even inadvertently, and FDA enforcement actions also could have a material adverse effect on our business, 
results of operations, cash flows or financial position.
▪
Investigation and Enforcement: The FDA has a number of investigatory and enforcement tools available to it, including
document requests and other required information submissions, facility inspections, facility closures, examinations and investigations,
injunction proceedings, monetary penalties, product withdrawal and recall orders, and product seizures.  Investigations or enforcement
actions could result in significant costs or otherwise have a material adverse effect on our business, results of operations, cash flows or
financial position.
Excise Taxes
Tobacco products are subject to substantial excise taxes in the United States.  Significant increases in tobacco-related taxes or fees have 
been proposed or enacted (including with respect to e-vapor products) and are likely to continue to be proposed or enacted at the federal, 
state and local levels within the United States.  The frequency and magnitude of excise tax increases can be influenced by various 
factors, including the composition of executive and legislative bodies.
Federal, state and local cigarette excise taxes have increased substantially over the past two decades, far outpacing the rate of inflation.  
Between the end of 1998 and February 24, 2025, the weighted-average state cigarette excise tax increased from $0.36 to $1.93 per pack. 
Three states (Maryland, Colorado and Rhode Island) increased excise taxes in 2024.  As of February 24, 2025, no states have increased 
excise taxes in 2025.  However, various increases are under consideration or have been proposed.
A majority of states currently tax MST using an ad valorem method, which is calculated as a percentage of the price of the product, 
typically the wholesale price.  This ad valorem method results in more tax being paid on premium products than is paid on lower-priced 
products of equal weight.  We support legislation to convert ad valorem taxes on MST to a weight-based methodology because, unlike 
the ad valorem tax, a weight-based tax subjects cans of equal weight to the same tax.  As of February 24, 2025, the federal government, 
23 states, Puerto Rico, Philadelphia, Pennsylvania and Cook County, Illinois have adopted a weight-based tax methodology for MST.  
North Carolina has passed legislation that will cause the state to adopt a weight-based tax methodology for MST in July 2025.
An increasing number of states and localities also are imposing excise taxes on e-vapor products and oral nicotine pouches.  As of 
February 24, 2025, 33 states, the District of Columbia, Puerto Rico and a number of cities and counties have enacted legislation to tax e-
vapor products.  These taxes are calculated in varying ways and may differ based on the e-vapor product form.  Similarly, 13 states and 
the District of Columbia have enacted legislation to tax oral nicotine pouches.
Tax increases are expected to continue to have an adverse impact on sales of our operating companies’ products through lower 
consumption levels and the potential shift in adult tobacco consumer purchases from premium to non-premium or discount cigarettes, to 
lower taxed tobacco products or to counterfeit and contraband products.  Lower sales volume and reported share performance of our 
operating companies’ products could have a material adverse effect on our business, results of operations, cash flows or financial 
position.  In addition, substantial excise tax increases on e-vapor and oral nicotine products may negatively impact adult smokers’ 
transition to these products, which could materially adversely affect our innovative tobacco businesses and our ability to achieve our 
Vision.
International Treaty on Tobacco Control
The World Health Organization’s Framework Convention on Tobacco Control (the “FCTC”) entered into force in February 2005.  As of 
February 24, 2025, 182 countries, as well as the European Union, have become parties to the FCTC.  While the United States is a 
signatory of the FCTC, it is not currently a party to the agreement, as the agreement has not been submitted to, or ratified by, the U.S. 
Senate.  The FCTC is the first international public health treaty and its objective is to establish a global agenda for tobacco regulation 
with the purpose of reducing initiation of tobacco use and encouraging cessation.  The treaty recommends (and in certain instances, 
requires) signatory nations to enact legislation that would address various tobacco-related issues.
There are a number of proposals currently under consideration by the governing body of the FCTC, some of which call for substantial 
restrictions on the manufacture, marketing, distribution and sale of tobacco products.  It is not possible to predict the outcome of these 
proposals or the impact of any FCTC actions on legislation or regulation in the United States, either indirectly or as a result of the United 
States becoming a party to the FCTC, or whether or how these actions might indirectly influence FDA regulation and enforcement.
State Settlement Agreements
As discussed in Note 20, during 1997 and 1998, PM USA and other major domestic cigarette manufacturers entered into the State 
Settlement Agreements.  These settlements require participating manufacturers to make substantial annual payments, which are adjusted 
for several factors, including inflation, operating income, market share and industry volume.  Increases in inflation can increase our 
financial liability under the State Settlement Agreements.  The State Settlement Agreements’ inflation calculations require us to apply 
the higher of 3% or the U.S. Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (“CPI-U”) percentage rate as 
published in January of each year.  As of December 2024, the inflation calculation was approximately 2.9% based on the latest CPI-U 
data.  We will continue to monitor the impact of increased inflation on the macroeconomic environment and our businesses.
37

For a discussion of the impact of the State Settlement Agreements on us, see Liquidity and Capital Resources - Payments Under State 
Settlement Agreements and FDA Regulation below and Note 20.  The State Settlement Agreements also place numerous requirements 
and restrictions on participating manufacturers’ business operations, including prohibitions and restrictions on the advertising and 
marketing of cigarettes and smokeless tobacco products.  Among these are prohibitions of outdoor and transit brand advertising, 
payments for product placement and free sampling (except in adult-only facilities).  The State Settlement Agreements also place 
restrictions on the use of brand name sponsorships and brand name non-tobacco products and prohibitions on targeting youth and the use 
of cartoon characters.  In addition, the State Settlement Agreements require companies to affirm corporate principles directed at reducing 
underage use of cigarettes; impose requirements regarding lobbying activities; limit the industry’s ability to challenge certain tobacco 
control and underage use laws; and provide for the dissolution of certain tobacco-related organizations and place restrictions on the 
establishment of any replacement organizations.
In November 1998, USSTC entered into the Smokeless Tobacco Master Settlement Agreement (the “STMSA”) with the attorneys 
general of various states and United States territories to resolve the remaining health care cost reimbursement cases initiated against 
USSTC.  The STMSA required USSTC to adopt various marketing and advertising restrictions.  USSTC is the only smokeless tobacco 
manufacturer to sign the STMSA.
Other International, Federal, State and Local Regulation and Governmental and Private Activity
▪
International, Federal, State and Local Regulation: Various states and localities have enacted or proposed legislation that
imposes restrictions on tobacco products (including cigarettes, smokeless tobacco, cigars, e-vapor products and oral nicotine pouches),
such as legislation that (i) prohibits the sale of all tobacco products or certain tobacco categories, such as e-vapor, (ii) prohibits the sale
of tobacco products with characterizing flavors, such as menthol cigarettes and flavored e-vapor products, (iii) requires the disclosure of
health information separate from or in addition to federally mandated health warnings, (iv) restricts commercial speech or imposes
additional restrictions on the marketing or sale of tobacco products and (v) requires manufacturers of e-vapor products to certify that
they are in compliance with FDA requirements to be allowed to sell in the state.  The legislation varies in terms of the type of tobacco
products, the conditions under which such products are or would be restricted or prohibited, and exceptions to the restrictions or
prohibitions.  For example, a number of proposals involving characterizing flavors would prohibit smokeless tobacco products with
characterizing flavors without providing an exception for mint- or wintergreen-flavored products.  As of February 24, 2025, multiple
states and localities are considering legislation to ban flavors in one or more tobacco products, and six states (California, Massachusetts,
New Jersey, New York, Rhode Island and Utah) and the District of Columbia have passed such legislation.  Some states, such as New
York, Utah and Illinois, exempt certain products that have received FDA market authorization through the PMTA pathway.  The
legislation in California, which became effective in December 2022, bans the sale of most tobacco products with characterizing flavors,
including menthol, mint and wintergreen.
Indiana, Massachusetts and Utah passed legislation capping the amount of nicotine in e-vapor products.  As of February 24, 2025, 
legislation relating to this issue is pending in three other states.
Similar restrictions to those enacted or proposed in various U.S. states and localities on e-vapor and oral nicotine pouch products have 
been enacted or proposed internationally.
We have challenged and will continue to challenge certain federal, state and local legislation and other governmental action, including 
through litigation.  Certain legislation imposing restrictions on tobacco products, such as state laws requiring manufacturers of e-vapor 
products to certify that they are in compliance with federal law in order to sell products in the state, aligns with our Vision, and we 
actively engage with lawmakers in support of such legislation.  It is possible, however, that legislation, regulation or other governmental 
action could be enacted or implemented that could have a material adverse impact on our business, results of operations, cash flows or 
financial position.  Such action also could negatively impact adult smokers’ transition to smoke-free products, which could materially 
adversely affect our innovative tobacco businesses and our ability to achieve our Vision.
▪
Federal, State and Local Legislation to Increase the Legal Age to Purchase Tobacco Products: In December 2019, after a
number of states and localities proposed and enacted legislation to increase the minimum age to purchase all tobacco products, including
e-vapor products, the federal government passed legislation increasing the minimum age to purchase all tobacco products, including e-
vapor products, to 21 nationwide.  As of February 24, 2025, 43 states, the District of Columbia and Puerto Rico have enacted laws
increasing the legal age to purchase tobacco products to 21.  Although an increase in the minimum age to purchase tobacco products
may have a negative impact on our operating companies’ sales volumes, we support raising the minimum legal age to purchase all
tobacco products to 21 at the federal and state levels, as discussed above under Underage Access and Use of Certain Tobacco Products,
reflecting our longstanding commitment to combat underage tobacco use.
▪
Health Effects of Tobacco Products, Including E-vapor Products: Reports with respect to the health effects of smoking
have been publicized for many years, including various reports by the U.S. Surgeon General.  We believe that the public should be
guided by the messages of the U.S. Surgeon General and public health authorities worldwide in making decisions concerning the use of
tobacco products, including e-vapor products.  Along with the scientific and public health communities, we continue to study and gather
scientific evidence concerning the health effects of e-vapor and other innovative tobacco products.  It is not possible to predict the results
of ongoing scientific research or the types of future scientific research into the health risks of tobacco exposure and the impact of such
38

research on legislation and regulation.  Scientific determinations as to any health risks or negative health consequences associated with 
the use of e-vapor and other innovative tobacco products could materially adversely affect our innovative tobacco products businesses 
and our ability to achieve our Vision.
Most jurisdictions within the United States have restricted smoking in public places and some have restricted vaping in public places.  
Some public health groups have called for, and various jurisdictions have adopted or proposed, bans on smoking and vaping in outdoor 
places, in private apartments and in cars transporting children.
▪
Other Legislation or Governmental Initiatives: In addition to the actions discussed above, other regulatory initiatives
affecting the tobacco industry have been adopted or are being considered at the federal level and in a number of state and local
jurisdictions.  For example, in recent years, legislation has been introduced or enacted at the state or local level to subject tobacco
products to various reporting requirements and performance standards; establish educational campaigns relating to tobacco consumption
or tobacco control programs or provide additional funding for governmental tobacco control activities; restrict the sale of tobacco
products in certain retail establishments and the sale of tobacco products in certain package sizes; prohibit the sale of tobacco products
based on environmental concerns; impose responsibility on manufacturers for the disposal, recycling or other treatment of post-
consumer goods such as plastic packaging; require tax stamping of smokeless tobacco products; require the use of state tax stamps using
data encryption technology; and further restrict the sale, marketing and advertising of cigarettes and other tobacco products.  Such
legislation may be subject to constitutional or other challenges on various grounds, which may or may not be successful.  In addition, if a
pandemic or similar health emergency occurs, state and local governments may reimpose additional health and safety requirements for
all businesses, which could result in the potential temporary closure of certain businesses and facilities.  It is possible that tobacco
manufacturing and other facilities and the facilities of our suppliers, our suppliers’ suppliers and our trade partners could be subject to
additional government-mandated temporary closures and restrictions.
It is not possible to predict what, if any, additional legislation, regulation or other governmental action will be enacted or implemented 
(and, if challenged, upheld) relating to the manufacturing, design, packaging, marketing, advertising, sale or use of tobacco products, or 
the tobacco industry generally.  Any such legislation, regulation or other governmental action could have a material adverse impact on 
our business, results of operations, cash flows or financial position.
▪
Governmental Investigations: From time to time, we are subject to governmental investigations on a range of matters.  For
example, we currently are, or recently have been, subject to a number of governmental investigations with respect to our former
investment in JUUL, which we divested in March 2023, including the following: (i) the U.S. Federal Trade Commission (“FTC”) issued
a Civil Investigative Demand to us while conducting its antitrust review of our former investment in JUUL; (ii) the SEC commenced an
investigation relating to our acquisition, disclosures and accounting controls in connection with the JUUL investment; and (iii) the New
York State Office of the Attorney General and the Commonwealth of Massachusetts Office of the Attorney General, separately, issued
independent subpoenas to us seeking documents relating to our former investment in and provision of services to JUUL.  For a
discussion of our disposition of our former investment in JUUL, see Note 8.
In April 2023, January 2024, February 2024 and April 2024, we agreed to settle the lawsuits relating to our former investment in JUUL 
initiated by the attorneys general of Minnesota, Alaska, Hawaii and New Mexico, respectively.
Private Sector Activity on Tobacco Products
A number of retailers, including national chains, have discontinued the sale of all tobacco products, and others have discontinued the 
sale of e-vapor products.  Reasons for the discontinuation include change in corporate policy and, with respect to e-vapor products, 
reported illnesses and the uncertain regulatory environment.  Furthermore, third-party digital platforms, such as app stores, have 
restricted, and in some cases prohibited, communications with adult tobacco consumers concerning tobacco products.  It is possible that 
if this private sector activity becomes more widespread it could have an adverse effect on our business, results of operations, cash flows 
or financial position.
Illicit Trade in Tobacco Products
Illicit trade in tobacco products has had, and could continue to have, an adverse impact on our businesses, including the sales volumes 
and market shares of our operating companies’ innovative and smoke-free products and traditional tobacco products.  Illicit trade can 
take many forms, including the sale of counterfeit tobacco products; the sale of tobacco products that do not comply with the FSPTCA 
and FDA regulations; the sale of tobacco products in the United States that are intended for sale outside the country; the sale of untaxed 
tobacco products over the Internet and by other means designed to avoid the collection of applicable taxes; and diversion into one taxing 
jurisdiction of tobacco products intended for sale in another.  Counterfeit tobacco products, for example, are manufactured by unknown 
third parties in unregulated environments.  Counterfeit versions of our products can negatively affect adult tobacco consumer 
experiences with and opinions of those brands.  Illicit disposable e-vapor and oral nicotine pouch products may be designed to appeal to 
youth and are manufactured without scientific standards, exposing consumers to undocumented risks.  Illicit trade in tobacco products 
also harms law-abiding wholesalers and retailers by depriving them of lawful sales and undermines the significant investment we have 
made in legitimate distribution channels.  Moreover, illicit trade in tobacco products results in federal, state and local governments losing 
tax revenues.  Losses in tax revenues can cause such governments to take various actions, including increasing excise taxes, imposing 
39

legislative or regulatory requirements, or asserting claims against manufacturers of tobacco products or members of the trade channels 
through which such tobacco products are distributed and sold, each of which could have an adverse effect on our business, results of 
operations, cash flows or financial position.
We communicate with wholesale and retail trade members regarding illicit trade in tobacco products and how we can help prevent such 
activities, enforce wholesale and retail trade programs and policies that address illicit trade in tobacco products and, when necessary, 
litigate to protect our trademarks.  We also engage with the FDA and other government agencies to advocate for a well-regulated U.S. 
tobacco industry that embraces harm reduction and the enforcement of existing regulatory frameworks.
Prohibitory policies, such as California’s ban on the sale of flavored tobacco products, which went into effect in 2022, can have 
unintended negative consequences, including the proliferation of counterfeit and unregulated products.  We actively engage with 
regulators, state and federal lawmakers, our trade partners and other stakeholders to bring awareness to these issues.  When appropriate, 
we also take legal action to protect our lawful e-vapor product business, such as the lawsuit we have filed in federal court in California 
against manufacturers of illicit e-vapor products.
In June 2024, the U.S. Department of Justice (“DOJ”) and the FDA announced the creation of a federal multi-agency task force to 
combat the illegal marketing and sale of e-vapor products in the United States.  The announcement noted that, in addition to the DOJ and 
the FDA, the task force will leverage the criminal and civil law enforcement capabilities of the U.S. Bureau of Alcohol, Tobacco, 
Firearms and Explosives, U.S. Customs and Border Protection, the U.S. Marshals Service, the U.S. Postal Inspection Service and the 
FTC and that additional agencies may join the task force in the future.  The DOJ and the FDA stated that the task force will focus on 
many topics, such as investigating and prosecuting new criminal, civil, seizure and forfeiture actions under various U.S. laws, including 
the FSPTCA.
Price, Availability and Quality of Tobacco, Other Raw Materials, Ingredients and Component Parts
Shifts in crops (such as those driven by economic conditions, adverse weather patterns and natural disasters), government restrictions 
and mandated prices, production control programs, economic trade sanctions, import duties and tariffs, international trade disruptions, 
labor disruptions, inflation, geopolitical instability, climate and environmental changes and disruptions due to man-made or natural 
disasters may increase the cost or reduce the supply or quality of tobacco and other raw materials, ingredients and component parts used 
to manufacture our operating companies’ products.  Any significant change in the nature or consequences of these factors could 
negatively impact our ability to continue manufacturing and marketing existing products, increase our costs or negatively impact adult 
tobacco consumer product acceptability and have a material adverse effect on our business and profitability.
As with other agricultural commodities, tobacco price, quality and availability can be influenced by variations in weather patterns and 
natural disasters, including those caused by climate change, and macroeconomic conditions and imbalances in supply and demand, 
among other factors.  For varieties of tobacco only available in limited geographies, government-mandated prices and production control 
programs, political instability or government prohibitions on the import or export of tobacco in certain countries pose additional risks to 
price, availability and quality.  As consumer demand increases for innovative smoke-free products and decreases for combustible and 
MST products, the volume of tobacco leaf required for production of these products has decreased, resulting in reduced tobacco leaf 
demand.  Reduced demand for tobacco leaf may result in the reduced supply and availability of domestic tobacco and increased costs, as 
growers divert resources to other crops or cease farming.  Macroeconomic factors, such as tariffs, may exacerbate reductions in demand 
for tobacco leaf by increasing the cost of purchasing tobacco leaf from a supplier in another country.  The unavailability or 
unacceptability of any one or more particular varieties of tobacco leaf or the unavailability of nicotine extract necessary to manufacture 
our operating companies’ products could negatively impact our ability to continue marketing existing products or impact adult tobacco 
consumer product acceptability, which could have a material adverse effect on our business and profitability.  In addition, the nicotine 
used in our operating companies’ innovative smoke-free products is extracted from tobacco produced in one country.  If we are unable to 
identify alternate sources of nicotine for our operating companies’ innovative products, we could be exposed to supply risk.
Current geopolitical and macroeconomic conditions (including tariffs, inflation, high interest rates, labor shortages, supply and demand 
imbalances and international armed conflict) and adverse weather events have caused and continue to cause worldwide disruptions and 
delays to supply chains and commercial markets, which limit access to, and increase the cost of, raw materials, ingredients and 
component parts (for example, wood tips used in our cigar products and aluminum used in our packaging).  As consumer demand 
increases for innovative smoke-free products and decreases for combustible and MST products, the volume of raw materials, ingredients 
and component parts required for the production of combustible and MST products has decreased.  Reduced demand for raw materials, 
ingredients and component parts may reduce supply and availability of raw materials, ingredients and component parts as suppliers 
divert resources to other products or cease producing these products.  Furthermore, challenging economic conditions can create the risk 
that our suppliers, distributors, logistics providers or other third-party partners suffer financial or operational difficulties, which may 
impact their ability to provide us with or distribute finished product, raw materials and component parts and services in a timely manner 
or at all.  If we are unable to identify alternate sources of raw materials, ingredients and component parts for our operating companies’ 
products, we could be exposed to supply risk.
We have implemented and continue to implement various strategies to help secure sufficient supplies of raw materials, ingredients and 
component parts for production, including maintaining inventory levels of certain tobacco varieties that cover several years, purchasing 
40

raw materials, ingredients and component parts from disperse geographic regions throughout the world and entering into long-term 
contracts with some of our tobacco growers and direct material suppliers.  To date, the impact on us of changes in the price, availability 
and quality of tobacco, other raw materials, ingredients and component parts has not been material.  However, the effects of the current 
macroeconomic and geopolitical conditions on prices, availability and quality of such items may continue, which could have a material 
adverse effect on our business, results of operations, cash flows or financial position.
In addition, government taxes and restrictions and prohibitions on the sale and use of certain materials used in our operating companies’ 
products may limit access to, and increase the costs of, raw materials and component parts and, potentially, impede our ability to sell 
certain of our products.  For example, certain states have passed extended producer responsibility legislation concerning packaging.  
Because certain of our products’ packaging consists of single-use plastics, single-use plastic bans and extended producer responsibility 
mandates could result in bans on some of our product packaging or our products and adversely impact our costs and revenues.  
Additional taxes and limitations on the use of certain single-use plastics have been proposed by the U.S. Congress and various state and 
local governments.  These existing and potential future laws and regulations could increase the costs of, and impair our ability to, source 
certain materials used in the packaging for our products.
Timing of Sales
In the ordinary course of business, we are subject to many influences that can impact the timing of sales to customers, including the 
timing of holidays and other annual or special events, the timing of promotions, customer incentive programs and customer inventory 
programs, as well as the actual or speculated timing of pricing actions and tax-driven price increases.
Operating Results
The following table provides reconciliations of reported OCI to adjusted OCI for our reportable segments, all other category and total 
OCI and provides the related OCI margins:
For the Year Ended December 31, 2024
(in millions)
Smokeable 
Products
Oral Tobacco 
Products
All Other
Total
Net revenues
$ 
21,204 $ 
2,776 $ 
38 $ 
24,018 
Excise taxes
(3,469) 
(105)
—
(3,574) 
Revenues net of excise taxes
$ 
17,735 $ 
2,671 $ 
38 $ 
20,444 
Reported OCI
$ 
10,821 $ 
1,449 $ 
(414)
$
11,856 
NPM Adjustment Items
(29)
—
— 
(29) 
Asset impairment, exit and implementation costs
60 
362 
— 
422 
Tobacco and health and certain other litigation items
70 
— 
— 
70 
Adjusted OCI
$ 
10,922 $ 
1,811 $ 
(414)
$
12,319 
Reported OCI margin (1)
 61.0 %
 54.2 %
(100+)%
 58.0 %
Adjusted OCI margin (1)
 61.6 %
 67.8 %
(100+)%
 60.3 %
(1) Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.
Progress towards our current U.S. smoke-free portfolio goals are as follows through 2024:
▪
U.S. smoke-free volumes of approximately 821 million units, an increase of 2.6% when compared to the 2022 base; and
▪
Total U.S. smoke-free net revenues were $2.8 billion and net revenues from innovative smoke-free products were $0.3 billion.
As discussed previously, we are reassessing our U.S. smoke-free goals, and we anticipate providing updated U.S. smoke-free goals when 
we have more clarity on how the legitimate e-vapor market may evolve.
41

Smokeable Products Segment
Financial Results
The following table summarizes operating results, includes reported and adjusted OCI margins and provides a reconciliation of reported 
OCI to adjusted OCI for our smokeable products segment:
Operating Results
For the Years Ended December 31,
(in millions)
2024
2023
Net revenues
$ 
21,204 
$ 
21,756 
Excise taxes
(3,469) 
(3,869) 
Revenues net of excise taxes
$ 
17,735 
$ 
17,887 
Reported OCI
$ 
10,821 
$ 
10,670 
NPM Adjustment Items
(29)
(29)
Asset impairment, exit and implementation costs
60 
— 
Tobacco and health and certain other litigation items
70 
69 
Adjusted OCI
$ 
10,922 
$ 
10,710 
Reported OCI margins (1)
 61.0 %
 59.7 %
Adjusted OCI margins (1)
 61.6 %
 59.9 %
(1) Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.
2024 Compared with 2023
Net revenues, which include excise taxes billed to customers, decreased $552 million (2.5%), due primarily to lower shipment volume 
($2,528 million), partially offset by higher pricing ($1,968 million), which includes higher promotional investments.
Reported OCI increased $151 million (1.4%), due primarily to higher pricing, which includes higher promotional investments, and lower 
marketing, administration and research costs ($56 million), partially offset by lower shipment volume ($1,648 million), higher per unit 
settlement charges and manufacturing costs ($198 million) and 2024 exit costs related to the Initiative.
Adjusted OCI increased $212 million (2.0%), due primarily to higher pricing, which includes higher promotional investments, and lower 
marketing, administration and research costs ($86 million), partially offset by lower shipment volume, higher per unit settlement charges 
and manufacturing costs.
Marketing, administration and research costs for the smokeable products segment include PM USA’s cost of administering and litigating 
product liability claims.  Litigation defense costs are influenced by a number of factors, including the number and types of cases filed, 
the number of cases tried annually, the results of trials and appeals, the development of the law controlling relevant legal issues, and 
litigation strategy and tactics.  For further discussion on these matters, see Note 20 and Item 3.  For the years ended December 31, 2024 
and 2023, product liability defense costs for PM USA were $125 million and $133 million, respectively.  The factors that have 
influenced past product liability costs are expected to continue to influence future costs.  We do not expect future product liability 
defense costs for our smokeable products segment to be significantly different from product liability defense costs incurred in 2024.
42

Shipment Volume and Retail Share Results
The following table summarizes our smokeable products segment’s shipment volume performance:
Shipment Volume
For the Years Ended December 31,
(sticks in millions)
2024
2023
Cigarettes:
 Marlboro
62,584 
68,801 
 Other premium
3,186 
3,533 
 Discount
2,812 
4,002 
Total cigarettes
68,582 
76,336 
Cigars:
 Black & Mild
1,750 
1,777 
 Other
4 
3 
Total cigars
1,754 
1,780 
Total smokeable products
70,336 
78,116 
Note: Cigarettes shipment volume includes Marlboro; Other premium brands, such as Virginia Slims and Parliament; and Discount brands, which 
include L&M and Basic.  Cigarettes volume includes units sold as well as promotional units but excludes units sold for distribution to Puerto Rico, U.S. 
Territories to overseas military and by Philip Morris Duty Free Inc., none of which, individually or in the aggregate, is material to our smokeable 
products segment.
The following table summarizes our cigarettes retail share performance:
Retail Share
For the Years Ended December 31,
2024
2023
Cigarettes:
 Marlboro
 41.7 %
 42.2 %
 Other premium
 2.2 
 2.3 
 Discount
 2.0 
 2.4 
Total cigarettes
 45.9 %
 46.9 %
Note: Retail share results for cigarettes are based on data from Circana, LLC (“Circana”), as well as Management Science Associates, Inc. (“MSAi”).  
Circana maintains a blended retail service that uses a sample of stores and certain wholesale shipments to project market share and depict share trends.  
This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes.  For other trade classes selling 
cigarettes, retail share is based on shipments from wholesalers to retailers through the Store Tracking Analytical Reporting System, as provided by 
MSAi.  This service is not designed to capture sales through other channels, including the internet, direct mail and some illicitly tax-advantaged outlets.  
It is the standard practice of retail services to periodically refresh their retail scan services, which could restate retail share results that were previously 
released in these services.
For a discussion of volume trends and factors that impact volume and retail share performance, see Business Environment above.
2024 Compared with 2023
Our smokeable products segment’s reported domestic cigarettes shipment volume decreased 10.2%, driven primarily by the industry’s 
decline rate (impacted by the growth of illicit e-vapor products and continued discretionary income pressures on adult tobacco 
consumers), retail share losses and trade inventory movements, partially offset by calendar differences.  When adjusted for calendar 
differences and trade inventory movements, our smokeable products segment’s domestic cigarettes shipment volume decreased by an 
estimated 11%.  When adjusted for calendar differences and trade inventory movements, total estimated domestic cigarette industry 
volume decreased by an estimated 9%.
Shipments of premium cigarettes accounted for 95.9% and 94.8% of our smokeable products segment’s reported domestic cigarettes 
shipment volume for 2024 and 2023, respectively.
Our cigar reported shipment volume decreased by 1.5%.
Marlboro’s retail share of the total cigarette category was 41.7%, a decrease of 0.5 share points.
Total cigarettes industry discount category retail share increased 1.3 share points to 29.7%, due primarily to continued discretionary 
income pressures on adult tobacco consumers.
43

For a discussion regarding discount category dynamics in 2024, the growth of illicit e-vapor products and the economic conditions that 
impact adult tobacco consumer purchasing behavior, see Operating Results by Business Segment - Business Environment - Summary 
above.
Pricing Actions
PM USA and Middleton executed the following pricing and promotional allowance actions during 2024 and 2023:
▪
Effective October 20, 2024, PM USA increased the list price of Marlboro (excluding Mainline Menthol and 72s Menthol),
L&M and Basic by $0.17 per pack.  PM USA also increased the list price of all its other cigarette brands by $0.22 per pack.
▪
Effective October 6, 2024, Middleton increased various list prices across substantially all of its cigar brands resulting in a
weighted-average increase of approximately $0.13 per five-pack.
▪
Effective July 14, 2024, PM USA increased the list price of Marlboro (excluding Mainline Menthol and 72s Menthol), L&M
and Basic by $0.17 per pack.  PM USA also increased the list price of all its other cigarette brands by $0.22 per pack.
▪
Effective April 21, 2024, Middleton increased various list prices across substantially all of its cigar brands resulting in a
weighted-average increase of approximately $0.16 per five-pack.
▪
Effective April 14, 2024, PM USA increased the list price of Marlboro (excluding Mainline Menthol and 72s Menthol), L&M
and Basic by $0.20 per pack.  PM USA also increased the list price of all its other cigarette brands by $0.25 per pack.
▪
Effective January 14, 2024, PM USA increased the list price of Marlboro (excluding Mainline Menthol and 72s Menthol),
L&M and Basic by $0.15 per pack.  PM USA also increased the list price of all its other cigarette brands by $0.20 per pack.
▪
Effective October 15, 2023, PM USA increased the list price of Marlboro, L&M and Basic by $0.17 per pack.  PM USA also
increased the list price of all its other cigarette brands by $0.22 per pack.
▪
Effective July 23, 2023, PM USA increased the list price of Marlboro, L&M and Basic by $0.16 per pack.  PM USA also
increased the list price of all its other cigarette brands by $0.21 per pack.
▪
Effective June 11, 2023, Middleton increased various list prices across substantially all of its cigar brands resulting in a
weighted-average increase of approximately $0.15 per five-pack.
▪
Effective April 23, 2023, PM USA increased the list price of Marlboro, L&M and Basic by $0.15 per pack.  PM USA also
increased the list price of all its other cigarette brands by $0.20 per pack.
▪
Effective January 22, 2023, PM USA increased the list price of Marlboro, L&M, Basic and Chesterfield by $0.15 per pack.  PM
USA also increased the list price of all its other cigarette brands by $0.20 per pack.
In addition:
▪
Effective January 19, 2025, PM USA increased the list price of Marlboro (excluding Mainline Menthol and 72s Menthol) and
L&M by $0.17 per pack.  PM USA decreased the list price of Marlboro Black by $0.28 per pack.  PM USA also increased the
list price of all its other premium cigarette brands by $0.22 per pack.
Oral Tobacco Products Segment
Financial Results
The following table summarizes operating results, includes reported and adjusted OCI margins and provides a reconciliation of reported 
OCI to adjusted OCI for our oral tobacco products segment:
Operating Results
For the Years Ended December 31,
(in millions)
2024
2023
Net revenues
$ 
2,776 
$ 
2,667 
Excise taxes
(105)
(112)
Revenues net of excise taxes
$ 
2,671 
$ 
2,555 
Reported OCI
$ 
1,449 
$ 
1,722 
Asset impairment, exit and implementation costs
362 
— 
Adjusted OCI
$ 
1,811 
$ 
1,722 
Reported OCI margins (1)
 54.2 %
 67.4 %
Adjusted OCI margins (1)
 67.8 %
 67.4 %
(1) Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.
44

2024 Compared with 2023
Net revenues, which include excise taxes billed to customers, increased $109 million (4.1%), due to higher pricing ($221 million), which 
includes higher promotional investments, partially offset by lower shipment volume and a higher percentage of on! shipment volume 
relative to MST ($112 million).
Reported OCI decreased $273 million (15.9%), due primarily to a non-cash impairment of the Skoal trademark ($354 million), lower 
shipment volume and a higher percentage of on! shipment volume relative to MST ($125 million), partially offset by higher pricing, 
which includes higher promotional investments.
Adjusted OCI increased $89 million (5.2%), due primarily to higher pricing, which includes higher promotional investments, partially 
offset by lower shipment volume and a higher percentage of on! shipment volume relative to MST.
Shipment Volume and Retail Share Results
The following table summarizes our oral tobacco products segment’s shipment volume performance:
Shipment Volume
For the Years Ended December 31,
(cans and packs in millions)
2024
2023
Copenhagen
401.5 
440.1 
Skoal
147.0 
163.1 
on!
160.3 
114.3 
Other
65.9 
65.4 
Total oral tobacco products
774.7 
782.9 
Note: Other primarily includes Red Seal and Husky.  Oral tobacco products shipment volume includes cans and packs sold, as well as promotional units, 
but excludes international volume, which is currently not material to our oral tobacco products segment.  New types of oral tobacco products, as well as 
new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis.  To 
calculate volumes of cans and packs shipped, one can of oral nicotine pouches, irrespective of the number of pouches in the pack, is assumed to be 
equivalent to one can or pack of MST.
The following table summarizes our oral tobacco products segment’s retail share performance (excluding international volume):
Retail Share
For the Years Ended December 31,
2024
2023
Copenhagen
 19.1 %
 23.5 %
Skoal
 7.6 
 9.3 
on!
 8.3 
 6.8 
Other
 2.5 
 2.9 
Total oral tobacco products
 37.5 %
 42.5 %
Note: Our oral tobacco products segment’s retail share results exclude international volume, which is currently not material to our oral tobacco products 
segment.  Retail share results for oral tobacco products are based on data from Circana, a tracking service that uses a sample of stores to project market 
share and depict share trends.  This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes 
on the number of cans and packs sold.  Oral tobacco products are defined by Circana as domestic tobacco derived oral products, in the form of MST and 
oral nicotine pouches.  New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not 
be equivalent to existing MST products on a can-for-can basis.  For example, one can of oral nicotine pouches, irrespective of the number of pouches in 
the pack, is assumed to be equivalent to one can or pack of MST.  Because this service represents retail share performance only in key trade channels, it 
should not be considered a precise measurement of actual retail share.  It is the standard practice of retail services to periodically refresh their retail scan 
services, which could restate retail share results that were previously released in these services.
For a discussion of volume trends and factors that impact volume and retail share performance, see Business Environment above.
2024 Compared with 2023
Our oral tobacco products segment’s reported domestic shipment volume decreased 1.0%, driven primarily by retail share losses and 
trade inventory movements, partially offset by the industry’s growth rate, calendar differences and other factors.  When adjusted for 
calendar differences and trade inventory movements, our oral tobacco products segment’s domestic shipment volume decreased by an 
estimated 2%.
Total oral tobacco products category industry volume increased by an estimated 8% over the six months ended December 31, 2024, 
driven primarily by growth in oral nicotine pouches, partially offset by declines in MST volumes.
45

Our oral tobacco products segment’s retail share was 37.5%, as share declines for MST products were partially offset by oral nicotine 
pouch segment share growth.
The U.S. nicotine pouch category grew to 42.9% of the U.S. oral tobacco category, an increase of 11.7 share points versus the prior year. 
In addition, on!’s share of the nicotine pouch category was 19.2%, a decrease of 2.6 share points versus the prior year.
For a discussion regarding the growth of oral nicotine pouch products and the related impact on the MST category and economic 
conditions that impact adult tobacco consumer purchasing behavior, see Operating Results by Business Segment - Business Environment 
- Summary above.
Pricing Actions
USSTC and Helix executed the following pricing actions during 2024 and 2023:
▪
Effective August 25, 2024, Helix increased the list price on its on! brand by $0.10 per can.
▪
Effective July 23, 2024, USSTC increased the list price on its Copenhagen, Skoal and Red Seal brands by $0.10 per can.
▪
Effective April 23, 2024, USSTC increased the list price on its Copenhagen, Skoal and Red Seal brands by $0.10 per can.
▪
Effective January 23, 2024, USSTC increased the list price on its Copenhagen, Skoal and Red Seal brands by $0.11 per can.
▪
Effective August 22, 2023, USSTC increased the list price on its Copenhagen, Red Seal and Skoal brands by $0.09 per can.  In
addition, USSTC decreased the list price on select Husky brands by $0.18 per can.
▪
Effective July 23, 2023, Helix increased the list price on its on! brand by $0.09 per can.
▪
Effective April 25, 2023, USSTC increased the list price on its Copenhagen popular price products, Red Seal and Husky brands
by $0.09 per can.  In addition, USSTC increased the list price on its Skoal brands and on the balance of its Copenhagen brands
by $0.10 per can.
▪
Effective January 24, 2023, USSTC increased the list price on its Copenhagen, Skoal, Red Seal and Husky brands by $0.09 per
can.
In addition:
▪
Effective January 21, 2025, USSTC increased the list price on its Copenhagen and Red Seal brands by $0.12 per can.  USSTC
also increased the list price on its Skoal brands by $0.17 per can.
▪
Effective February 23, 2025, Helix increased the list price on its on! brand by $0.20 per can.
E-Vapor
Our NJOY e-vapor business is reported in our all other category.
For the year ended December 31, 2024, reported domestic shipment volumes for NJOY consumables(1) and devices were 46.6 million 
units and 5.0 million units, respectively.
For the year ended December 31, 2024, NJOY retail share of consumables in the U.S. multi-outlet and convenience channel was 5.5%.
(1) E-vapor shipment volume includes NJOY ACE pods and DAILY disposables.
For a discussion regarding the growth of illicit e-vapor products and the ITC’s determination on the patent infringement complaint 
related to NJOY, see Critical Accounting Estimates above.
Liquidity and Capital Resources
We are a holding company that is primarily dependent on the capital resources of our subsidiaries to satisfy our liquidity requirements.  
Our access to the operating cash flows of our subsidiaries consists of cash received from the payment of dividends and distributions, and 
the payment of interest on intercompany loans.  At December 31, 2024, our significant subsidiaries were not limited by contractual 
obligations in their ability to pay cash dividends or make other distributions with respect to their equity interests.  In addition, we receive 
cash dividends on our interest in ABI and will continue to do so as long as we hold shares in ABI and ABI pays dividends.
At December 31, 2024, we had $3.1 billion of cash and cash equivalents.  In addition to having access to the operating cash flows of our 
subsidiaries, our capital resources include access to credit markets in the form of commercial paper, availability under our $3.0 billion 
senior unsecured 5-year revolving credit agreement (“Credit Agreement”), which we use for general corporate purposes, and access to 
credit markets through the issuance of long-term senior unsecured notes.  For additional information, see Capital Markets and Other 
Matters below.
In addition to funding current operations, we primarily use our net cash from operating activities for payment of dividends, share 
repurchases under our share repurchase programs, repayment of debt, acquisitions of or investments in businesses and assets and capital 
expenditures.
We believe our cash and cash equivalents balance, along with our future cash flows from operations, capacity for borrowings under our 
Credit Agreement and access to credit and capital markets, provide sufficient liquidity to meet the needs of our business operations and 
to satisfy our projected cash requirements for the next 12 months and the foreseeable future.
46

Capital Markets and Other Matters
Credit Ratings - Our cost and terms of financing and our access to commercial paper markets may be impacted by applicable credit 
ratings.  The impact of credit ratings on the cost of borrowings under our Credit Agreement is discussed in Note 10. Short-Term 
Borrowings to our consolidated financial statements in Item 8 (“Note 10”).
At December 31, 2024, the credit ratings and outlook for our indebtedness by major credit rating agencies were:
Short-term Debt
Long-term Debt
Outlook
Moody’s Investors Service, Inc. (“Moody’s”)
P-2
A3
Negative (1)
Standard & Poor’s Financial Services LLC (“S&P”)
A-2
BBB
Positive
Fitch Ratings Inc.
F2
BBB
Stable
(1) On May 6, 2024, Moody’s changed its outlook for our indebtedness to Negative from Stable.
Credit Lines - From time to time, we have short-term borrowing needs to meet our working capital requirements arising from the timing 
of payments under the State Settlement Agreements, quarterly income tax payments and quarterly dividend payments, and generally use 
our commercial paper program to meet those needs.
At December 31, 2024, we had availability under our Credit Agreement for borrowings of up to an aggregate principal amount of $3.0 
billion, and we were in compliance with the covenants in our Credit Agreement.  We monitor the credit quality of our bank group and do 
not know of any potential non-performing credit provider in that group.  For further discussion on short-term borrowings, see Note 10.
Long-Term Debt - At December 31, 2024 and 2023, our total long-term debt was $24.9 billion and $26.2 billion, respectively.
During the first quarter of 2024, we repaid in full at maturity our 4.000% and 3.800% senior unsecured notes in the aggregate principal 
amounts of $776 million and $345 million, respectively.
On February 6, 2025, we issued USD denominated senior unsecured notes in the aggregate principal amount of $1.0 billion.  The net 
proceeds from the notes are being used for general corporate purposes, which may include the repayment of our 2.350% senior 
unsecured notes due May 2025 and our 1.700% senior unsecured notes due June 2025.  The notes contain the following terms:
▪
$0.5 billion at 4.875%, due 2028, interest payable semiannually beginning August 4, 2025; and
▪
$0.5 billion at 5.625%, due 2035, interest payable semiannually beginning August 6, 2025.
All of our long-term debt outstanding at December 31, 2024 and 2023 was fixed-rate debt.  At December 31, 2024 and 2023, the 
weighted-average coupon interest rate on total long-term debt was approximately 4.3%.
For further details on long-term debt, see Note 11. Long-Term Debt to our consolidated financial statements in Item 8 (“Note 11”).
At December 31, 2024, our debt-to-Consolidated net earnings and debt-to-Consolidated EBITDA ratios were calculated as follows:
For the Twelve Months Ended 
December 31, 2024
(in millions)
Consolidated net earnings
$ 
11,264 
Interest and other debt expense, net
1,037 
Provision for income taxes
2,394 
Depreciation and amortization
286 
EBITDA
14,981 
(Income) loss from investments in equity securities and noncontrolling interests, net
(652) 
Dividends from less than 50% owned affiliates
139 
Gain on the sale of IQOS System commercialization rights
(2,700) 
Asset impairment and exit costs
389 
Consolidated EBITDA
$ 
12,157 
Current portion of long-term debt
$ 
1,527 
Long-term debt
23,399 
Total Debt
$ 
24,926 
Total Debt / Consolidated net earnings
2.2 
Total Debt / Consolidated EBITDA
2.1 
47

ABI Transaction - As discussed in Note 8, in March 2024, we received pre-tax cash proceeds from the ABI Transaction of 
approximately $2.4 billion and paid transaction costs of approximately $62 million.  We used the proceeds from the ABI Transaction to 
fund the ASR transactions discussed below.
NJOY Contingent Payments - In the second quarter of 2024, the FDA issued MGOs for four NJOY e-vapor menthol products.  As a 
result, we became obligated to make cash payments totaling $250 million under the acquisition agreement, which we made in July 2024. 
For further discussion on the NJOY contingent payments, see Note 3.
In October 2023, we filed a registration statement on Form S-3 with the SEC, under which we may offer debt securities or warrants to 
purchase debt securities from time to time over a three-year period from the date of filing.
Off-Balance Sheet Arrangements and Other Future Contractual Obligations
We had no off-balance sheet arrangements, including special purpose entities, other than guarantees and contractual obligations that are 
discussed below.
Guarantees and Other Similar Matters - As discussed in Note 20, we had unused letters of credit obtained in the ordinary course of 
business and guarantees (including third-party guarantees) outstanding at December 31, 2024.  From time to time, we also issue lines of 
credit to affiliated entities.  As further discussed in Note 5. Supplier Financing to our consolidated financial statements in Item 8, as part 
of the supplier financing program, Altria guarantees the financial obligations of ALCS under the financing program agreement.  In 
addition, as discussed below in Supplemental Guarantor Financial Information and in Note 11, PM USA guarantees our obligations 
under our outstanding debt securities, any borrowings under our Credit Agreement and any amounts outstanding under our commercial 
paper program.  These items have not had, and are not expected to have, a significant impact on our liquidity.
Long-Term Debt and Interest on Borrowings - In addition to maturities of long-term debt, we make interest payments based on stated 
coupon interest rates.  For information on annual debt maturities and interest payments, see Note 11.
Purchase Obligations - We have entered into purchase obligations for inventory and production costs (such as raw materials, indirect 
materials and services, contract manufacturing, packaging, storage and distribution) and other commitments for projected needs to be 
used in the normal course of business.  Arrangements are considered purchase obligations if a contract specifies all significant terms, 
including fixed or minimum quantities to be purchased, a pricing structure and approximate timing of the transaction.  Most 
arrangements are cancelable without a significant penalty and with short notice (usually 30 days).  At December 31, 2024, purchase 
obligations for inventory and production costs for the next 12 months were $0.8 billion and $2.3 billion thereafter.
At December 31, 2024, we had $0.9 billion of other purchase obligation commitments for marketing, capital expenditures, information 
technology and professional services, which occur through the ordinary course of business.  The majority of these commitments are 
expected to be satisfied within 12 months.  Accounts payable and accrued liabilities are reflected on our consolidated balance sheet at 
December 31, 2024 and are excluded from the amounts above.
Payments Under State Settlement Agreements and FDA Regulation - PM USA has entered into State Settlement Agreements with the 
states, the District of Columbia and certain U.S. territories that call for certain payments.  In addition, PM USA, Middleton and USSTC 
are subject to quarterly user fees imposed by the FDA as a result of the FSPTCA.  For further discussion of State Settlement 
Agreements, see Health Care Cost Recovery Litigation in Note 20.
Based on current agreements, estimated annual industry volume decline rates, estimated operating income, estimated market share and 
inflation, the estimated amounts that we may charge to cost of sales for payments related to State Settlement Agreements and FDA user 
fees are $3.0 billion on average for the next three years.  This estimate no longer includes PM USA’s obligations under the State 
Settlement Agreements to make quarterly payments with respect to settling plaintiffs’ attorneys’ fees due to the termination of these 
obligations in the fourth quarter of 2024.  In addition, the amount excludes the potential impact of any NPM Adjustment Items.
The estimated amounts due under the State Settlement Agreements charged to cost of sales in each year are generally paid in April of the 
following year.  The amounts charged to cost of sales for FDA user fees are generally paid in the quarter in which the fees are incurred.  
We paid approximately $3.9 billion and $4.3 billion for the years ended December 31, 2024 and 2023, respectively, in connection with 
the State Settlement Agreements and FDA user fees, which are primarily paid in the second quarter of each period.  The payments due 
under the terms of the State Settlement Agreements and FDA user fees are subject to adjustment for several factors, including volume, 
operating income, market share and inflation.  The future payment amounts discussed above are estimates, and actual payment amounts 
will differ to the extent underlying assumptions differ from actual future results.  For further discussion on the potential impact of 
inflation on future payments, see Operating Results by Business Segment - Business Environment - State Settlement Agreements above.
Litigation-Related Deposits and Payments - With respect to certain adverse verdicts currently on appeal, to obtain stays of judgments 
pending appeals, as of December 31, 2024, PM USA had posted appeal bonds totaling $31 million, which have been collateralized with 
restricted cash that is included in assets on our consolidated balance sheet.
Litigation is subject to uncertainty, and an adverse outcome or settlement of litigation could have a material adverse effect on our results 
of operations, cash flows or financial position in a particular fiscal quarter or fiscal year, as more fully disclosed in Note 20, Item 3 and 
Item 1A.
48

Other Long-Term Liabilities - We had $0.9 billion of accrued postretirement health care costs on our consolidated balance sheet at 
December 31, 2024 and estimate approximately $84 million of annual payments.  In addition, we had accrued pension obligations, 
substantially all of which are funded from plan assets.  For further information on our postretirement health care and pension obligations, 
see Note 18.
In October 2024, we entered into an agreement with the IRS regarding the tax treatment of a $6.4 billion ordinary loss we recognized in 
2023 for cash tax purposes with respect to a portion of our tax basis associated with our former investment in JUUL.  As a result, other 
liabilities decreased approximately $1.1 billion, which included the reversal of an unrecognized tax benefit associated with the 
$6.4 billion ordinary loss position recognized in 2023, as further discussed in Note 16.
We are unable to estimate the timing of payments of other long-term liabilities included on our consolidated balance sheet at 
December 31, 2024.
Equity and Dividends
During 2024, we paid dividends of $6.8 billion, essentially unchanged from 2023, reflecting a higher dividend rate, mostly offset by 
fewer shares outstanding as a result of shares we repurchased under our share repurchase programs.
In the third quarter of 2024, our Board approved a 4.1% increase in the quarterly dividend rate to $1.02 per share of our common stock 
versus the previous rate of $0.98 per share.  Our current annualized dividend rate is $4.08 per share.  Our 2028 Goals include a 
progressive dividend goal targeting mid-single digits dividend per share growth annually through 2028.  Future dividend payments 
remain subject to the discretion of our Board.
In March 2024, we increased our $1.0 billion share repurchase program to $3.4 billion and entered into ASR transactions for our 
common stock.  In the first half of 2024, we paid $2.4 billion for the repurchase of our common stock in the ASR transactions.  We 
funded the ASR transactions with proceeds from the ABI Transaction.
For further discussion of our share repurchase programs, see Note 12 and Part II, Item 5. Market for Registrant’s Common Equity, 
Related Stockholder Matters and Issuer Purchases of Equity Securities of this Form 10-K.
Financial Review
Cash Provided by/Used in Operating Activities
During 2024, net cash provided by operating activities was $8.8 billion compared with $9.3 billion during 2023.  This decrease was due 
primarily to lower net revenues, payments for certain transferable income tax credits, higher litigation payments and a portion of the 
NJOY contingent payments ($140 million), partially offset by lower payments for (i) federal excise taxes and (ii) Statement Settlement 
Agreements, due primarily to lower smokeable products shipment volume.
We had a working capital deficit at December 31, 2024 and 2023, and believe we have the ability to fund working capital deficits with 
cash provided by operating activities, borrowings under our Credit Agreement and access to the credit and capital markets.
Cash Provided by/Used in Investing Activities
During 2024, net cash provided by investing activities was $2.2 billion compared with net cash used in investing activities of $1.3 billion 
during 2023.  This change was due primarily to proceeds from the ABI Transaction in 2024 and the payments for the NJOY Transaction 
in 2023, partially offset by proceeds from the sale of IQOS System commercialization rights in 2023.
Capital expenditures for 2024 decreased 27.6% to $142 million.  We expect capital expenditures for 2025 to be in the range of $175 
million to $225 million, which are expected to be funded from operating cash flows.
Cash Provided by/Used in Financing Activities
During 2024, net cash used in financing activities was $11.5 billion compared with $8.4 billion during 2023.  This increase was due 
primarily to higher share repurchases in 2024, issuance of long-term debt in 2023 and a portion of the NJOY contingent payments 
($110 million), partially offset by lower repayments of long-term debt in 2024.
New Accounting Guidance Not Yet Adopted
See Note 2 for a discussion of issued accounting guidance applicable to, but not yet adopted by, us.
Contingencies
See Note 20 and Item 3 for a discussion of contingencies.
Supplemental Guarantor Financial Information
PM USA (“Guarantor”), which is a 100% owned subsidiary of Altria Group, Inc. (“Parent”), has guaranteed the Parent’s obligations 
under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper 
program (“Guarantees”).  Pursuant to the Guarantees, the Guarantor fully and unconditionally guarantees, as primary obligor, the 
49

payment and performance of the Parent’s obligations under the guaranteed debt instruments (“Obligations”), subject to release under 
certain customary circumstances as noted below.
The Guarantees provide that the Guarantor guarantees the punctual payment when due, whether at stated maturity, by acceleration or 
otherwise, of the Obligations.  The liability of the Guarantor under the Guarantees is absolute and unconditional irrespective of: any lack 
of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, 
manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any 
consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any 
release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other 
circumstance that might otherwise constitute a defense available to, or a discharge of, the Parent or the Guarantor.
Under applicable provisions of federal bankruptcy law or comparable provisions of state fraudulent transfer law, the Guarantees could be 
voided, or claims in respect of the Guarantees could be subordinated to the debts of the Guarantor, if, among other things, the Guarantor, 
at the time it incurred the Obligations evidenced by the Guarantees:
▪
received less than reasonably equivalent value or fair consideration therefor; and
▪
either:
▪
was insolvent or rendered insolvent by reason of such occurrence;
▪
was engaged in a business or transaction for which the assets of the Guarantor constituted unreasonably small capital; or
▪
intended to incur, or believed that it would incur, debts beyond its ability to pay such debts as they mature.
In addition, under such circumstances, the payment of amounts by the Guarantor pursuant to the Guarantees could be voided and 
required to be returned to the Guarantor, or to a fund for the benefit of the Guarantor, as the case may be.
The measures of insolvency for purposes of the foregoing considerations will vary depending upon the law applied in any proceeding 
with respect to the foregoing.  Generally, however, the Guarantor would be considered insolvent if:
▪
the sum of its debts, including contingent liabilities, was greater than the saleable value of its assets, all at a fair valuation;
▪
the present fair saleable value of its assets was less than the amount that would be required to pay its probable liability on its
existing debts, including contingent liabilities, as they become absolute and mature; or
▪
it could not pay its debts as they become due.
To the extent the Guarantees are voided as a fraudulent conveyance or held unenforceable for any other reason, the holders of the 
guaranteed debt obligations would not have any claim against the Guarantor and would be creditors solely of the Parent.
The obligations of the Guarantor under the Guarantees are limited to the maximum amount as will not result in the Guarantor’s 
obligations under the Guarantees constituting a fraudulent transfer or conveyance, after giving effect to such maximum amount and all 
other contingent and fixed liabilities of the Guarantor that are relevant under Bankruptcy Law, the Uniform Fraudulent Conveyance Act, 
the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Guarantees.  For this purpose, 
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.
The Guarantor will be unconditionally released and discharged from the Obligations upon the earliest to occur of:
▪
the date, if any, on which the Guarantor consolidates with or merges into the Parent or any successor;
▪
the date, if any, on which the Parent or any successor consolidates with or merges into the Guarantor;
▪
the payment in full of the Obligations pertaining to such Guarantees; and
▪
the rating of the Parent’s long-term senior unsecured debt by S&P of A or higher.
The Parent is a holding company; therefore, its access to the operating cash flows of its wholly owned subsidiaries consists of cash 
received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries.  Neither 
the Guarantor nor other 100% owned subsidiaries of the Parent that are not guarantors of the debt (“Non-Guarantor Subsidiaries”) are 
limited by contractual obligations on their ability to pay cash dividends or make other distributions with respect to their equity interests.
50

The following tables include summarized financial information for the Parent and the Guarantor.  Transactions between the Parent and 
the Guarantor (including investment and intercompany balances as well as equity earnings) have been eliminated.  The Parent’s and the 
Guarantor’s intercompany balances with Non-Guarantor Subsidiaries have been presented separately.  This summarized financial 
information is not intended to present the financial position or results of operations of the Parent or the Guarantor in accordance with 
GAAP.
Summarized Balance Sheets
(in millions of dollars)
December 31, 2024
Parent
Guarantor
Assets
Due from Non-Guarantor Subsidiaries
$ 
— $ 
334 
Other current assets
3,215 
658 
Total current assets
$ 
3,215 $ 
992 
Due from Non-Guarantor Subsidiaries
$ 
6,561 $ 
— 
Other assets
8,005 
1,246 
Total non-current assets
$ 
14,566 $ 
1,246 
Liabilities
Due to Non-Guarantor Subsidiaries
$ 
3,549 $ 
1,157 
Other current liabilities
4,216 
3,510 
Total current liabilities
$ 
7,765 $ 
4,667 
Total non-current liabilities
$ 
25,039 $ 
522 
Summarized Statements of Earnings (Losses)
(in millions of dollars)
For the Year Ended December 31, 2024
Parent (1)
Guarantor (2)
Net revenues
$ 
— $ 
20,010 
Gross profit
— 
11,531 
Net earnings (losses)
799 
7,723 
(1) For the year ended December 31, 2024, net earnings (losses) include $368 million of intercompany interest income from non-guarantor subsidiaries
and $468 million of interest expense from non-guarantor subsidiaries.
(2) For the year ended December 31, 2024, net earnings (losses) include $294 million of intercompany interest income from non-guarantor subsidiaries.
Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.
Interest Rate Risk
The fair value of our long-term debt, all of which is fixed-rate debt, is subject to fluctuations resulting primarily from changes in market 
interest rates.  The following table provides the fair value of our long-term debt and the change in fair value based on a 1% increase or 
decrease in market interest rates at December 31:
(in billions)
2024
2023
Fair value
$ 
22.7 $ 
24.4 
Decrease in fair value from a 1% increase in market interest rates
1.7 
1.9 
Increase in fair value from a 1% decrease in market interest rates
2.0 
2.2 
We expect interest rates on borrowings under our Credit Agreement to be based on the Term Secured Overnight Financing Rate, plus a 
percentage based on the higher of the ratings of our long-term senior unsecured debt from Moody’s and S&P.  The applicable percentage 
for borrowings under our Credit Agreement at December 31, 2024 was 1.0% based on our long-term senior unsecured debt ratings on 
that date.  At December 31, 2024 and 2023, we had no borrowings under our Credit Agreement.
51

Item 8.  Financial Statements and Supplementary Data.
Altria Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(in millions of dollars)
________________________
at December 31,
2024
2023
Assets
Cash and cash equivalents
$ 
3,127 $ 
3,686 
Receivables
177 
71 
Inventories:
Leaf tobacco
591 
649 
Other raw materials
190 
204 
Work in process
21 
22 
Finished product
278 
340 
1,080 
1,215 
Income taxes
93 
496 
Other current assets
36 
117 
Total current assets
4,513 
5,585 
Property, plant and equipment, at cost:
Land and land improvements
124 
123 
Buildings and building equipment
1,552 
1,535 
Machinery and equipment
2,662 
2,684 
Construction in progress
199 
240 
4,537 
4,582 
Less accumulated depreciation
2,920 
2,930 
1,617 
1,652 
Goodwill
6,945 
6,791 
Other intangible assets, net
12,973 
13,686 
Investments in equity securities
8,195 
10,011 
Other assets
934 
845 
Total Assets
$ 
35,177 $ 
38,570 
See notes to consolidated financial statements.
52

Altria Group, Inc. and Subsidiaries
Consolidated Balance Sheets (Continued)
(in millions of dollars, except share and per share data)
____________________________________________
at December 31,
2024
2023
Liabilities
Current portion of long-term debt
$ 
1,527 $ 
1,121 
Accounts payable
700 
582 
Accrued liabilities:
Marketing
688 
716 
Settlement charges
2,354 
2,563 
Other
1,780 
1,902 
Deferred gain from the sale of IQOS System commercialization rights
— 
2,700 
Dividends payable
1,732 
1,735 
Total current liabilities
8,781 
11,319 
Long-term debt
23,399 
25,112 
Deferred income taxes
3,749 
2,799 
Accrued pension costs
136 
130 
Accrued postretirement health care costs
935 
1,079 
Other liabilities
365 
1,621 
Total liabilities
37,365 
42,060 
Contingencies (Note 20)
Stockholders’ Equity (Deficit)
Common stock, par value $0.33 1/3 per share
(2,805,961,317 shares issued)
935 
935 
Additional paid-in capital
5,905 
5,906 
Earnings reinvested in the business
35,516 
31,094 
Accumulated other comprehensive losses
(2,400) 
(2,673) 
Cost of repurchased stock
(1,115,309,450 shares at December 31, 2024 and 
1,042,499,542 shares at December 31, 2023)
(42,194) 
(38,802) 
Total stockholders’ equity (deficit) attributable to Altria
(2,238) 
(3,540) 
Noncontrolling interests
50 
50 
Total stockholders’ equity (deficit)
(2,188) 
(3,490) 
Total Liabilities and Stockholders’ Equity (Deficit)
$ 
35,177 $ 
38,570 
See notes to consolidated financial statements.
53

for the years ended December 31,
2024
2023
2022
Net revenues
$ 
24,018 
$ 
24,483 
$ 
25,096 
Cost of sales
6,077 
6,218 
6,442 
Excise taxes on products
3,574 
3,981 
4,408 
Gross profit
14,367 
14,284 
14,246 
Marketing, administration and research costs
2,737 
2,737 
2,327 
Asset impairment and exit costs
389 
— 
— 
Operating income
11,241 
11,547 
11,919 
Interest and other debt expense, net
1,037 
989 
1,058 
Net periodic benefit income, excluding service cost
(102)
(127)
(184) 
(Income) losses from investments in equity securities
(652)
(243)
3,656 
Gain on the sale of IQOS System commercialization rights
(2,700) 
— 
— 
Earnings before income taxes
13,658 
10,928 
7,389 
Provision for income taxes
2,394 
2,798 
1,625 
Net earnings
$ 
11,264 
$ 
8,130 
$ 
5,764 
Per share data:
Basic and diluted earnings per share
$ 
6.54 
$ 
4.57 
$ 
3.19 
See notes to consolidated financial statements.
Altria Group, Inc. and Subsidiaries
Consolidated Statements of Earnings
(in millions of dollars, except per share data)
____________________________________
54

for the years ended December 31,
2024
2023
2022
Net earnings
$ 
11,264 
$ 
8,130 
$ 
5,764 
Other comprehensive earnings (losses), net of deferred income taxes:
Benefit plans
101 
(57)
176
ABI
177 
174 
143 
Currency translation adjustments and other
(5) 
(19)
(34)
Other comprehensive earnings (losses), net of deferred income taxes
273 
98 
285 
Comprehensive earnings
$ 
11,537 
$ 
8,228 
$ 
6,049 
See notes to consolidated financial statements.
Altria Group, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Earnings
(in millions of dollars)
_______________________
55

for the years ended December 31,
2024
2023
2022
Cash Provided by (Used in) Operating Activities
Net earnings
$ 
11,264 
$ 
8,130 
$ 
5,764 
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization
286 
272 
226 
Deferred income tax provision (benefit)
951 
(230)
(947)
Unrecognized tax benefit (1)
(1,128) 
1,111 
16 
(Income) losses from investments in equity securities
(652)
(243)
3,656 
Gain on the sale of IQOS System commercialization rights
(2,700) 
— 
— 
Dividends from ABI
139 
163 
104 
Asset impairment and exit costs
389 
— 
— 
Cash effects of changes: (2)
Receivables
(106)
6
(21) 
Inventories
102 
(15)
14
Accounts payable
116 
38 
92 
Income taxes
798 
6 
(118) 
Accrued liabilities and other current assets
(550)
280
(129) 
Accrued settlement charges
(209)
(362)
(424) 
Pension plan contributions
(18)
(20)
(20) 
Pension and postretirement, net
(107)
(136)
(156) 
Other, net
178 
287 
199 
Net cash provided by (used in) operating activities
8,753 
9,287 
8,256 
Cash Provided by (Used in) Investing Activities
Capital expenditures
(142)
(196)
(205) 
Proceeds from the ABI Transaction (3)
2,353 
— 
— 
Proceeds from the sale of IQOS System commercialization rights
— 
1,700 
1,000 
Acquisition of NJOY, net of cash acquired
— 
(2,751) 
— 
Other, net
(36)
(36)
(13) 
Net cash provided by (used in) investing activities
2,175 
(1,283) 
782 
(1) Substantially all of the 2024 and 2023 amounts relate to an unrecognized tax benefit from the ordinary loss for cash tax purposes with respect to a portion of our tax
basis associated with our former investment in JUUL, partially offset by our estimated corporate alternative minimum tax credit carryforward.  See Note 16. Income
Taxes.
(2) 2023 amounts are net of the effects from the NJOY Transaction.  See Note 3. Acquisition of NJOY.
(3) See Note 8. Investments in Equity Securities.
See notes to consolidated financial statements.
Altria Group, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in millions of dollars)
__________________
56

for the years ended December 31,
2024
2023
2022
Cash Provided by (Used in) Financing Activities
Proceeds from short-term borrowings
$ 
— 
$ 
2,000 
$ 
— 
Repayment of short-term borrowings
— 
(2,000) 
— 
Long-term debt issued
— 
998 
— 
Long-term debt repaid
(1,121) 
(1,566) 
(1,105) 
Repurchases of common stock
(3,400) 
(1,000) 
(1,825) 
Dividends paid on common stock
(6,845) 
(6,779) 
(6,599) 
Other, net
(125)
(27)
(12) 
Net cash provided by (used in) financing activities
(11,491) 
(8,374) 
(9,541) 
Cash, cash equivalents and restricted cash:
Increase (decrease)
(563)
(370)
(503) 
Balance at beginning of year
3,721 
4,091 
4,594 
Balance at end of year
$ 
3,158 
$ 
3,721 
$ 
4,091 
Supplemental cash flow information:
Cash paid:
Interest
$ 
1,113 
$ 
1,116 
$ 
1,119 
Income taxes
$ 
1,802 (1) $ 
1,890 (1) $ 
2,657 
Non-cash investing activities:
Deferred proceeds from the sale of IQOS System commercialization rights $ 
— 
$ 
— 
$ 
1,700 
The following table provides a reconciliation of cash, cash equivalents and restricted cash (2) to the amounts reported on our 
consolidated balance sheets:
at December 31,
2024
2023
2022
Cash and cash equivalents
$ 
3,127 
$ 
3,686 
$ 
4,030 
Restricted cash included in other current assets
8 
5 
15 
Restricted cash included in other assets
23 
30 
46 
Cash, cash equivalents and restricted cash
$ 
3,158 
$ 
3,721 
$ 
4,091 
(1) For the years ended December 31, 2024 and 2023, income taxes paid were reduced by the impact of transferable income tax credits.  At December 31, 2024 and 2023,
transferable income tax credits totaled $445 million and $335 million, respectively, and are included in other accrued liabilities on our consolidated balance sheets.
(2)  Restricted cash consisted primarily of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals.  See Note 20.
Contingencies.
See notes to consolidated financial statements.
Altria Group, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Continued)
(in millions of dollars)
__________________
57

Attributable to Altria
Common
Stock
Additional
Paid-in
Capital
Earnings
Reinvested in
the Business
Accumulated
Other
Comprehensive
Losses
Cost of
Repurchased
Stock
Non-
controlling
Interests
Total
Stockholders’
Equity 
(Deficit) 
Balances, December 31, 2021
$ 
935 
$ 
5,857 
$ 
30,664 
$ 
(3,056) $ 
(36,006) $ 
— 
$ 
(1,606) 
Net earnings
— 
— 
5,764 
— 
— 
— 
5,764 
Other comprehensive earnings (losses), net 
of deferred income taxes
— 
— 
— 
285 
— 
— 
285 
Stock award activity
— 
30 
— 
— 
15 
— 
45 
Cash dividends declared ($3.68 per share)
— 
— 
(6,636) 
— 
— 
— 
(6,636) 
Repurchases of common stock
— 
— 
— 
— 
(1,825) 
— 
(1,825) 
Other (1)
— 
— 
— 
— 
— 
50 
50 
Balances, December 31, 2022
935 
5,887 
29,792 
(2,771) 
(37,816) 
50 
(3,923) 
Net earnings
— 
— 
8,130 
— 
— 
— 
8,130 
Other comprehensive earnings (losses), net 
of deferred income taxes
— 
— 
— 
98 
— 
— 
98 
Stock award activity
— 
19 
— 
— 
22 
— 
41 
Cash dividends declared ($3.84 per share)
— 
— 
(6,828) 
— 
— 
— 
(6,828) 
Repurchases of common stock
— 
— 
— 
— 
(1,000) 
— 
(1,000) 
Other
— 
— 
— 
— 
(8)
— 
(8) 
Balances, December 31, 2023
935 
5,906 
31,094 
(2,673) 
(38,802) 
50 
(3,490) 
Net earnings
— 
— 
11,264 
— 
— 
— 
11,264 
Other comprehensive earnings (losses), net 
of deferred income taxes
— 
— 
— 
273 
— 
— 
273 
Stock award activity
— 
17 
— 
— 
24 
— 
41 
Cash dividends declared ($4.00 per share)
— 
— 
(6,842) 
— 
— 
— 
(6,842) 
Repurchases of common stock
— 
(18)
—
— 
(3,382) 
— 
(3,400) 
Other
— 
— 
— 
— 
(34)
— 
(34) 
Balances, December 31, 2024
$ 
935 
$ 
5,905 
$ 
35,516 
$ 
(2,400) $ 
(42,194) $ 
50 
$ 
(2,188) 
(1) Represents the non-cash contribution made by JTIUH to Horizon in 2022.  See Note 1. Background and Basis of Presentation.
See notes to consolidated financial statements.
Altria Group, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity (Deficit)
(in millions of dollars, except per share data)
____________________________________
58

Altria Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
_______________________________
Note 1.  Background and Basis of Presentation
When used in these notes, the terms “Altria,” “we,” “us” and “our” refer to either (i) Altria Group, Inc. and its consolidated 
subsidiaries or (ii) Altria Group, Inc. only and not its consolidated subsidiaries, as appropriate in the context.
▪
Background: At December 31, 2024, our wholly owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is
engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (“Middleton”), which is engaged in the
manufacture and sale of machine-made large cigars and is a wholly owned subsidiary of PM USA; UST LLC (“UST”), which, through
its wholly owned subsidiary U.S. Smokeless Tobacco Company LLC (“USSTC”), is engaged in the manufacture and sale of moist
smokeless tobacco (“MST”) products; Helix Innovations LLC (“Helix”), which operates in the United States, and its foreign affiliates
(“Helix International”), which operate in certain other countries, are engaged in the manufacture and sale of oral nicotine pouches; and
NJOY, LLC (“NJOY”), which is engaged in the manufacture and sale of e-vapor products.  Other wholly owned subsidiaries included
Altria Group Distribution Company (“AGDC”), which provides sales and distribution services to our domestic operating companies, and
Altria Client Services LLC (“ALCS”), which provides various support services to our companies in areas such as legal, regulatory,
research and product development, consumer engagement, finance, human resources and external affairs.  Our access to the operating
cash flows of our subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on
intercompany loans.  At December 31, 2024, our significant subsidiaries were not limited by contractual obligations in their ability to
pay cash dividends or make other distributions with respect to their equity interests.
As discussed in Note 3. Acquisition of NJOY, on June 1, 2023, we completed our acquisition of NJOY Holdings, Inc. (“NJOY 
Holdings”), the parent of NJOY.  As a result of the acquisition, NJOY became a wholly owned subsidiary of Altria.
In October 2022, we entered into a joint venture with JTI (US) Holding, Inc. (“JTIUH”), a subsidiary of Japan Tobacco Inc., for the U.S. 
marketing and commercialization of heated tobacco stick (“HTS”) products.  The joint venture entity, Horizon Innovations LLC 
(“Horizon”), is structured to exist in perpetuity and is responsible for the U.S. marketing and commercialization of HTS products owned 
by either party.  At December 31, 2024, we owned a 75% economic interest in Horizon; JTIUH owned the remaining 25% economic 
interest.  As of January 30, 2025, there are no products in the U.S. marketplace from the joint venture.
At December 31, 2024, we had investments in Anheuser-Busch InBev SA/NV (“ABI”) and Cronos Group Inc. (“Cronos”).  In March 
2024, we sold a portion of our investment in ABI (“ABI Transaction”).  In March 2023, we entered into a stock transfer agreement with 
JUUL Labs, Inc. (“Stock Transfer Agreement”) pursuant to which we transferred to JUUL Labs, Inc. (“JUUL”) all of our beneficially 
owned JUUL equity securities.  In exchange, we received a non-exclusive, irrevocable global license to certain of JUUL’s heated 
tobacco intellectual property (“JUUL Heated Tobacco IP”).  For further discussion of our current and former investments and the ABI 
Transaction, see Note 8. Investments in Equity Securities.
▪
Basis of Presentation: Our consolidated financial statements include Altria, as well as our wholly owned and majority-owned
subsidiaries.  We account for our investments in equity securities in which we have the ability to exercise significant influence over the
operating and financial policies of the investee, including ABI and Cronos, under the equity method of accounting using a one-quarter
lag.  We accounted for our former investment in the equity securities of JUUL at fair value.  All intercompany transactions and balances
have been eliminated.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 
(“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 
disclosure of contingent liabilities at the dates of our financial statements and the reported amounts of net revenues and expenses during 
the reporting periods.  Significant estimates and assumptions include, among other things, pension and benefit plan assumptions, lives 
and valuation assumptions for goodwill and other intangible assets, investments in equity securities, marketing programs and income 
taxes.  Actual results could differ from those estimates.
Certain immaterial prior year amounts have been reclassified to conform with the current year’s presentation.
On January 1, 2024, we adopted Accounting Standards Update (“ASU”) 2022-03, Fair Value Measurement (Topic 820): Fair Value 
Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU No. 2022-03”).  This guidance clarifies that a 
contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, 
is not considered in measuring fair value.  This guidance also specifies required disclosures for equity securities subject to contractual 
sale restrictions.  We applied ASU No. 2022-03 for the fair value disclosure of our investment in ABI.  For further discussion, see Note 
8. Investments in Equity Securities.
Additionally, in connection with the preparation of our annual financial statements for the year ended December 31, 2024, we adopted 
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU No. 2023-07”).  This guidance 
59

requires disclosure of incremental segment information on an annual and interim basis.  We included expanded footnote disclosures as a 
result of the adoption of ASU No. 2023-07 in Note 17. Segment Reporting.  We will include interim disclosure requirements in our 
interim condensed consolidated financial statements beginning in the first quarter of 2025.
Note 2.  Summary of Significant Accounting Policies
▪
Cash and Cash Equivalents: Cash equivalents include demand deposits with banks and all highly liquid investments with
original maturities of three months or less.  We record cash equivalents at cost plus accrued interest, which approximates fair value.
▪
Depreciation, Amortization and Impairment Testing: We record property, plant and equipment at historical costs and
depreciate by the straight-line method over the estimated useful lives of the assets.  We depreciate machinery and equipment over
periods up to 20 years, and buildings and building improvements over periods up to 50 years.  We amortize definite-lived intangible
assets over their estimated useful lives up to 25 years.
We review long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in business 
circumstances indicate that the carrying value of the assets may not be fully recoverable.  We perform undiscounted operating cash flow 
analyses to determine if an impairment exists.  For purposes of recognition and measurement of an impairment for assets held for use, 
we group assets and liabilities at the lowest level for which cash flows are separately identifiable.  If we determine that an impairment 
exists, any related impairment loss is calculated based on fair value.  We base impairment losses on assets to be disposed of, if any, on 
the estimated proceeds to be received, less costs of disposal.  We also review the estimated remaining useful lives of long-lived assets 
whenever events or changes in business circumstances indicate the lives may have changed.
We conduct a required annual review of goodwill and indefinite-lived intangible assets for potential impairment as of October 1 of each 
year, and more frequently if an event occurs or circumstances change that would require us to perform an interim review.  We have the 
option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit or 
indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a 
quantitative impairment test.  If necessary, we will perform a single step quantitative impairment test.  Additionally, we have the option 
to unconditionally bypass the qualitative assessment and perform a single step quantitative assessment.  If the carrying value of a 
reporting unit that includes goodwill exceeds its fair value, which is determined using discounted cash flows, goodwill is considered 
impaired.  We measure the amount of impairment loss as the difference between the carrying value and the fair value of a reporting unit; 
however, the amount of the impairment loss is limited to the total amount of goodwill allocated to a reporting unit.  If the carrying value 
of an indefinite-lived intangible asset exceeds its fair value, which is determined using discounted cash flows, we consider the intangible 
asset impaired and reduce the carrying value to fair value in the period identified.
▪
Derivative Financial Instruments: From time to time, we enter into derivatives to mitigate the potential impact of certain
market risks, including foreign currency exchange rate risk.  We use various types of derivative financial instruments, including forward
contracts, options and swaps.
We record derivative financial instruments at fair value on the consolidated balance sheets as either assets or liabilities.  We designate 
derivative financial instruments that qualify for hedge accounting as either fair value hedges, cash flow hedges or net investment hedges 
at the inception of the contracts.  For fair value hedges, we record changes in the fair value of the derivative, as well as the offsetting 
changes in the fair value of the hedged item, in the consolidated statements of earnings each period.  For cash flow hedges, we record 
changes in the fair value of the derivative each period in accumulated other comprehensive earnings (losses) and reclassify changes to 
the consolidated statements of earnings in the same periods in which operating results are affected by the respective hedged item.  For 
net investment hedges, we record changes in the fair value of the derivative or foreign currency transaction gains or losses on a 
nonderivative hedging instrument in accumulated other comprehensive earnings (losses) to offset the change in the value of the net 
investment being hedged.  Such amounts remain in accumulated other comprehensive earnings (losses) until the complete or 
substantially complete liquidation of the underlying foreign operations occurs for investments in foreign entities accounted for under the 
equity method of accounting.  We classify cash flows from hedging instruments in the same manner as the respective hedged item in the 
consolidated statements of cash flows.
To qualify for hedge accounting, the hedging relationship, both at inception of the hedge and on an ongoing basis, is expected to be 
highly effective at offsetting changes in the fair value of the hedged risk during the period that the hedge is designated.  We formally 
designate and document, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management 
objective, the strategy for undertaking the hedge transaction and method for assessing hedge effectiveness.  Additionally, for qualified 
hedges of forecasted transactions, if it becomes probable that a forecasted transaction will not occur, we would no longer consider the 
hedge effective and would record all of the derivative gains and losses in the consolidated statement of earnings in the current period.
For financial instruments that are not designated as hedging instruments or do not qualify for hedge accounting, we record changes in 
fair value in the consolidated statement of earnings each period.  We do not enter into or hold derivative financial instruments for trading 
or speculative purposes.
60

▪
Employee Benefit Plans: We provide a range of benefits to certain employees and retired employees, including pension,
postretirement health care and postemployment benefits.  We record annual amounts relating to these plans based on calculations
specified by GAAP, which include various actuarial assumptions as to discount rates, assumed rates of return on plan assets, mortality,
compensation increases, turnover rates and health care cost trend rates.
We recognize the funded status of our defined benefit pension and other postretirement plans on the consolidated balance sheets and 
record as a component of other comprehensive earnings (losses), net of deferred income taxes, the gains or losses and prior service costs 
or credits that have not been recognized as components of net periodic benefit cost (income).  We subsequently amortize the gains or 
losses and prior service costs or credits recorded as components of other comprehensive earnings (losses) into net periodic benefit cost 
(income) in future years.
▪
Fair Value Measurements: We measure certain assets and liabilities at fair value.  Fair value is defined as the exchange price
that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the
asset or liability in an orderly transaction between market participants on the measurement date.  We use a fair value hierarchy, which
gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements).  The three levels of inputs used to measure fair value are:
Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets 
that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the 
full term of the assets or liabilities.
Level 3
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or 
liabilities.
▪
Guarantees: We recognize a liability for the fair value of the obligation of qualifying guarantee activities.  See Note 20.
Contingencies - Guarantees and Other Similar Matters for a further discussion of guarantees.
▪
Income Taxes: Significant judgment is required in determining income tax provisions and in evaluating tax positions.
We determine deferred tax assets and liabilities based on the difference between the financial statement and tax bases of assets and 
liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse.  We record a valuation allowance 
when it is more likely than not that some portion or all of a deferred tax asset will not be realized.  We determine the realizability of 
deferred tax assets based on the weight of all available positive and negative evidence.  In reaching this determination, we consider the 
character of the assets and the possible sources of taxable income of the appropriate character within the available carryback and 
carryforward periods available under the tax law.
We recognize the financial statement benefit for uncertain income tax positions in our consolidated financial statements when it is more 
likely than not, based on the technical merits, that the position will be sustained upon examination by taxing authorities.  The amount 
recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.  For 
those income tax positions where it is more likely than not that a tax benefit will not be sustained, no tax benefit is recognized in the 
financial statements.  We recognize accrued interest and penalties associated with uncertain tax positions as part of the provision for 
income taxes in our consolidated statements of earnings.
▪
Inventories: We use the last-in, first-out (“LIFO”) method to determine the cost of the majority of our inventories.  We
determine the cost of the remaining inventories using the first-in, first-out (“FIFO”) and average cost methods.  We record inventories
that are measured using the LIFO method at the lower of cost or market.  We state inventories that are measured using the FIFO and
average cost methods at the lower of cost and net realizable value.  It is a generally recognized industry practice to classify leaf tobacco
inventories as a current asset although part of such inventories, because of the duration of the curing and aging process, ordinarily would
not be used within one year.  We determined the cost of approximately 77% and 76% of our inventories at December 31, 2024 and 2023,
respectively, using the LIFO method.  The recorded LIFO amounts of our inventories were approximately $0.7 billion lower than the
current cost of our inventories at December 31, 2024 and 2023.
▪
Investments in Equity Securities: Investments in equity securities in which we have the ability to exercise significant
influence over the operating and financial policies of the investee are accounted for under the equity method of accounting or the fair
value option.  The election of the fair value option is irrevocable and is made on an investment by investment basis.
We elected to account for our investments in ABI and Cronos under the equity method of accounting.  Our share of equity (income) 
losses and other adjustments associated with these investments are included in (income) losses from investments in equity securities in 
our consolidated statements of earnings.  We report the carrying value for each of our investments in ABI and Cronos in investments in 
equity securities on our consolidated balance sheets.  We report equity method investments accounted for under the equity method of 
accounting at cost and adjust these investments each period for our share of (income) losses and dividends paid, if any.  We report our 
share of ABI’s and Cronos’s results using a one-quarter lag because results are not available in time for us to record them in the 
concurrent period.  At the end of each reporting period, we review our investments accounted for under the equity method of accounting 
for impairment by comparing the fair value of each of our investments to their carrying value.  If the carrying value of an investment 
61

exceeds its fair value and we determine that the loss in value is other than temporary, we consider the investment impaired, reduce its 
carrying value to its fair value and record the impairment in our consolidated statements of earnings in the period identified.  We use 
certain factors to make this determination including (i) the duration and magnitude of the fair value decline, (ii) the financial condition 
and near-term prospects of the investee and (iii) our intent and ability to hold our investment until recovery to its carrying value.
See Note 8. Investments in Equity Securities for additional information on our accounting policy for our former investment in JUUL.
▪
Litigation Contingencies and Costs: We record provisions in our consolidated financial statements for pending litigation
when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated.  We expense
litigation defense costs as incurred and include these costs in marketing, administration and research costs in our consolidated statements
of earnings.  See Note 20. Contingencies.
▪
Marketing Costs: Our businesses promote their products with consumer incentives, trade promotions and consumer
engagement programs.  These consumer incentive and trade promotion activities, which include discounts, coupons, rebates, in-store
display incentives and volume-based incentives, do not create a distinct deliverable and are, therefore, recorded as a reduction of
revenues.  We make consumer engagement program payments to third parties.  Our businesses expense these consumer engagement
programs, which include event marketing, as incurred, and such expenses are included in marketing, administration and research costs in
our consolidated statements of earnings.  For interim reporting purposes, our businesses charge consumer engagement programs and
certain consumer incentive expenses to operations as a percentage of sales, based on estimated sales and related expenses for the full
year.
▪
Revenue Recognition: Our businesses generate substantially all of their revenue from sales contracts with customers.  While
our businesses enter into separate sales contracts with each customer for each product type, all sales contracts are similarly structured.
These contracts create an obligation to transfer product to the customer.  Our businesses satisfy all performance obligations within one
year; therefore, we expense costs to obtain contracts as incurred and do not disclose unsatisfied performance obligations.  There is no
financing component because our businesses expect, at contract inception, that the period between when our businesses transfer product
to the customer and when the customer pays for that product will be one year or less.
Our businesses define net revenues as revenues, which include excise taxes and shipping and handling charges billed to customers, net of 
cash discounts for prompt payment, sales returns (also referred to as returned goods) and sales incentives.  Our businesses exclude from 
the transaction price sales taxes and value-added taxes imposed at the time of sale.
Our businesses recognize revenues from sales contracts with customers upon shipment of goods when control of such products is 
obtained by the customer.  Our businesses determine that a customer obtains control of the product upon shipment when title of such 
product and risk of loss transfers to the customer.  Our businesses account for shipping and handling costs as fulfillment costs and such 
amounts are classified as part of cost of sales in our consolidated statements of earnings.  Our businesses record an allowance for 
returned goods, based principally on historical volume and return rates, which is included in other accrued liabilities on our consolidated 
balance sheets.  Our businesses record sales incentives, which consist of consumer incentives and trade promotion activities, as a 
reduction to revenues (a portion of which is based on amounts estimated as being due to wholesalers, retailers and consumers at the end 
of a period) based principally on historical volume, utilization and redemption rates.  We include expected payments for sales incentives 
in accrued marketing liabilities on our consolidated balance sheets.
Payment terms vary depending on product type.  Our businesses consider payments received in advance of product shipment as deferred 
revenue, which we include in other accrued liabilities on our consolidated balance sheets until revenue is recognized.  PM USA 
primarily receives payments in advance of a customer obtaining control of the product.  USSTC, Helix and NJOY receive substantially 
all payments within one business day of a customer obtaining control of the product.  We include amounts due from customers in 
receivables on our consolidated balance sheets.
▪
Supplier Financing: We facilitate a voluntary supplier financing program under which participating suppliers may elect to sell
receivables due from us to a third-party financial institution.  Our payments are made on the terms originally negotiated with the
supplier, and we have no economic interest in a supplier’s sale of a receivable.  All outstanding balances under the supplier financing
program are recorded in accounts payable on our consolidated balance sheets.
62

▪
New Accounting Guidance Not Yet Adopted: The following table provides a description of issued accounting guidance
applicable to, but not yet adopted by, us:
Standards
Description
Effective Date for Public Entity
Effect on Financial Statements
ASU No. 2023-09 Income Taxes 
(Topic 740): Improvements to 
Income Tax Disclosures
The guidance will require additional 
income tax disclosures, primarily 
related to the rate reconciliation and 
income taxes paid information.
The guidance is effective for fiscal 
years beginning after December 15, 
2024.
The guidance will result in expanded 
disclosures beginning in our annual 
consolidated financial statements for 
the year ending December 31, 2025.
ASU Nos. 2024-03 and 2025-01 
Income Statement-Reporting 
Comprehensive Income-Expense 
Disaggregation Disclosures 
(Subtopic 220-40): Disaggregation 
of Income Statement Expenses
The guidance will require additional 
disclosures about specific types of 
expenses included in the expense 
captions presented on the face of the 
income statement as well as 
disclosures about selling expenses.
The guidance is effective for fiscal 
years beginning after December 15, 
2026, and interim periods within 
fiscal years beginning after 
December 15, 2027.
We are in the process of evaluating 
the impact of this guidance on our 
disclosures.
Note 3.  Acquisition of NJOY
On June 1, 2023, we acquired NJOY Holdings (“NJOY Transaction”), which provided us with full global ownership of NJOY’s e-vapor 
product portfolio, including NJOY ACE.  The total consideration for the NJOY Transaction of approximately $2.9 billion consisted of 
approximately $2.75 billion in cash payments (net of cash acquired) plus the fair value of up to $500 million in additional cash payments 
contingent on receipt of U.S. Food and Drug Administration (“FDA”) authorizations with respect to NJOY’s menthol ($250 million), 
blueberry ($125 million) and watermelon ($125 million) pod products.  The fair value of these contingent payments at December 31, 
2023 and on the acquisition date was approximately $130 million, which was included in the total consideration.
In the second quarter of 2024, the FDA issued marketing granted orders for four NJOY menthol e-vapor products.  As a result, we 
became obligated to make cash payments totaling $250 million under the acquisition agreement, which we made in July 2024.  
Additionally, we recorded a pre-tax charge of approximately $140 million for the change in the fair value of contingent payments for the 
year ended December 31, 2024.  At December 31, 2024, the fair value of the remaining contingent payments, which relate to blueberry 
and watermelon pod products, was approximately $20 million.
Contingent payments related to the NJOY Transaction were recognized at their estimated fair value as of the acquisition date.  
Subsequent changes to the fair value of the liability associated with contingent payments are recognized in earnings until the 
contingency is resolved.  In determining the estimated fair value of contingent payments, we made certain judgments, estimates and 
assumptions, the most significant of which was the likelihood of certain potential regulatory outcomes.  Contingent payments are 
classified in Level 3 of the fair value hierarchy.
Costs incurred for the NJOY Transaction are recognized in the period in which they are incurred and are included in our consolidated 
statement of earnings as follows:
For the Years Ended December 31,
(in millions)
2024
2023
Marketing, administration and research costs:
Change in fair value of contingent payments
$ 
140 
$ 
— 
Other costs, net (1)
36 
63 
Interest and other debt expense, net:
Financing fees
— 
9 
Total NJOY Transaction costs, net
$ 
176 
$ 
72 
(1) For the year ended December 31, 2024, these amounts consisted primarily of acquisition-related items associated with patent infringement lawsuits
related to the NJOY Transaction.  For the year ended December 31, 2023, these amounts consisted primarily of acquisition-related transaction costs.
For further discussion of the patent infringement lawsuits, see Note 20. Contingencies.
We funded the initial NJOY Transaction cash payments at closing through a combination of borrowings under a $2.0 billion term loan 
facility, the issuance of commercial paper and available cash.  For further discussion regarding the term loan facility, see Note 10 Short-
Term Borrowings.
63

We accounted for the NJOY Transaction as a business combination.  On June 1, 2024, we finalized our purchase price allocation.  The 
amounts in the table below represent the final purchase price allocation to the assets acquired and liabilities assumed in the NJOY 
Transaction, including measurement period adjustments recorded during 2024.
(in millions)
Preliminary 
Purchase Price 
Allocation 
Measurement 
Period 
Adjustments
Final Purchase 
Price Allocation
Cash and cash equivalents
$ 
22 $ 
— $ 
22 
Receivables
7 
— 
7 
Inventories
19 
— 
19 
Other assets
7 
— 
7 
Property, plant and equipment
16 
— 
16 
Other intangible assets:
Developed technology (amortizable)
1,000 
— 
1,000 
Trademarks (amortizable)
230 
(40)
190
Supplier agreements (amortizable) 
180 
(180)
—
Accounts payable
(7)
—
(7) 
Accrued liabilities
(20)
—
(20) 
Deferred income taxes
(167)
66
(101) 
Total identifiable net assets
1,287 
(154)
1,133
Total consideration 
2,901 
— 
2,901 
Goodwill
$ 
1,614 $ 
154 $ 
1,768 
The excess of the total consideration over the identifiable net assets acquired in the NJOY Transaction primarily reflects the value of 
future growth opportunities in the e-vapor category.  None of the goodwill or other intangible assets is deductible for tax purposes.
The significant assumptions used in determining the fair values of the identifiable intangible assets included volume growth rates, 
operating margins, the assessment of acquired technology life cycles and discount rates.  We determined the fair values of the 
identifiable intangible assets using an income approach.  The fair value measurements were primarily based on significant inputs that are 
not observable in the market, such as discounted cash flow analyses, and thus were classified in Level 3 of the fair value hierarchy.  We 
amortize these intangible assets over a weighted-average period of approximately 18 years.
Note 4.  Revenues from Contracts with Customers
We disaggregate net revenues based on product type.  For further discussion, see Note 17. Segment Reporting.
Prior to 2024, substantially all cash discounts, offered in contracts with our customers for prompt payment, were based on a flat rate per 
unit based on agreed-upon payment terms.  Beginning in the first quarter of 2024 for PM USA and USSTC, cash discounts in contracts 
with our customers were based on a percentage of the list price based on agreed-upon payment terms.  We record receivables net of the 
cash discounts on our consolidated balance sheets.
Receivables and deferred revenue associated with contracts with customers were as follows at December 31:
(in millions)
2024
2023
Receivables
$ 
177 $ 
71 
Deferred revenue
215 
258 
At December 31, 2024 and 2023, we did not expect differences between amounts recorded as receivables and amounts that would be 
subsequently received; therefore, we did not record an allowance for credit losses against these receivables.
We record deferred revenue when our businesses receive payment in advance of product shipment.  These payments are included in 
other accrued liabilities on our consolidated balance sheets until control of such products is obtained by the customer.  When cash is 
received in advance of product shipment, our companies satisfy their performance obligations within three days of receiving payment. 
At December 31, 2024 and 2023, there were no differences between amounts recorded as deferred revenue from contracts with 
customers and amounts subsequently recognized as revenue.
We record an allowance for returned goods, which is included in other accrued liabilities on our consolidated balance sheets.  It is 
USSTC’s policy to accept authorized sales returns from its customers for products that have passed the freshness date printed on product 
64

packaging due to the limited shelf life of USSTC’s MST products.  We record estimated sales returns, which are based principally on 
historical volume and return rates, as a reduction to revenues.  Actual sales returns will differ from estimated sales returns to the extent 
actual results differ from estimated assumptions.  We reflect differences between actual and estimated sales returns in the period in 
which the actual amounts become known.  These differences, if any, have not had a material impact on our consolidated financial 
statements.  All returned goods are destroyed upon return and not included in inventory.  Consequently, we do not record an asset for 
USSTC’s right to recover goods from customers upon return.
Sales incentives include variable payments related to goods sold by our businesses.  We include estimates of variable consideration as a 
reduction to revenues upon shipment of goods to customers.  The sales incentives that require significant estimates and judgments are as 
follows:
▪
Price promotion payments - We make price promotion payments, substantially all of which are made to our retail partners to
incent the promotion of certain product offerings in select geographic areas.
▪
Wholesale and retail participation payments - We make payments to our wholesale and retail partners to incent merchandising
and sharing of sales data in accordance with our trade agreements.
These estimates primarily include estimated wholesale to retail sales volume and historical acceptance rates.  Actual payments will differ 
from estimated payments to the extent actual results differ from estimated assumptions.  Differences between actual and estimated 
payments are reflected in the period such information becomes available.  These differences, if any, have not had a material impact on 
our consolidated financial statements.
Note 5.  Supplier Financing
We facilitate a voluntary supplier financing program through a third-party intermediary under which participating suppliers may elect to 
sell receivables due from us to participating third-party financial institutions at the sole discretion of both the suppliers and the financial 
institutions (“Program”).  Our responsibility is limited to making payment on the terms originally negotiated with our supplier, 
regardless of whether our supplier sells its receivable to a financial institution.  We pay the third-party intermediary a nominal fee to 
administer the Program.  Under the terms of the agreement with our third-party intermediary, ALCS has a direct obligation to pay the 
participating financial institutions or the participating suppliers when payment obligations are due, unless such obligations are satisfied 
by the applicable ALCS affiliate.  Additionally, Altria guarantees the obligations of ALCS to those parties.  We do not enter into 
agreements with any of the participating financial institutions in connection with the Program.  The range of payment terms we negotiate 
with our suppliers (up to 120 days) is consistent irrespective of whether a supplier participates in the Program.
We have no economic interest in a supplier’s sale of a receivable.  Once a qualifying supplier elects to participate in the Program and 
reaches an agreement with a participating third-party financial institution, the qualifying supplier elects which individual invoices it sells 
to the financial institution.
All outstanding balances under the Program are recorded in accounts payable on our consolidated balance sheets, and the associated 
payments are included in operating activities within our consolidated statements of cash flows.
A reconciliation of the beginning and ending confirmed outstanding obligations was as follows:
For the Years Ended December 31,
(in millions)
2024
2023
Confirmed outstanding obligations at beginning of year
$ 
119 $ 
8 
Invoices confirmed during the year
563 
244 
Confirmed invoices paid during the year
(554) 
(133) 
Confirmed outstanding obligations at end of year
$ 
128 $ 
119 
65

Note 6.  Goodwill and Other Intangible Assets, net
Goodwill and other intangible assets, net, were as follows at December 31:
2024
2023
(in millions)
Goodwill
Other Intangible 
Assets, net
Goodwill
Other Intangible 
Assets, net
Smokeable products segment
$ 
99 
$ 
2,936 $ 
99 
$ 
2,963 
Oral tobacco products segment
5,078 
8,679 
5,078 
9,065 
Other
1,768 
(1)
1,358 
1,614 
(1)
1,658 
Total
$ 
6,945 
$ 
12,973 $ 
6,791 
$ 
13,686 
(1) Represents e-vapor reporting unit goodwill related to the NJOY Transaction.  See Note 3. Acquisition of NJOY.
Other intangible assets consisted of the following at December 31:
2024
2023
(in millions)
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Indefinite-lived intangible assets
$ 
11,089 $ 
— $ 
11,443 $ 
— 
Definite-lived intangible assets
2,621 
737 
2,841 
598 
Total other intangible assets
$ 
13,710 $ 
737 $ 
14,284 $ 
598 
At December 31, 2024, substantially all of our indefinite-lived intangible assets consisted of (i) MST trademarks of $8.5 billion, which 
consists of Copenhagen, Skoal and other MST trademarks of $4.0 billion, $3.6 billion and $0.9 billion, respectively, from our 2009 
acquisition of UST, and (ii) cigar trademarks of $2.6 billion from our 2007 acquisition of Middleton.  Definite-lived intangible assets, 
consisting primarily of intellectual property (which includes developed technology), certain cigarette trademarks, e-vapor trademarks 
and customer relationships, are amortized over a weighted-average period of approximately 19 years.  Pre-tax amortization expense for 
definite-lived intangible assets during the years ended December 31, 2024, 2023 and 2022 was $139 million, $128 million and 
$73 million, respectively.  We estimate our annual amortization expense for each of the next five years to be approximately 
$150 million, assuming no additional transactions occur that require the amortization of intangible assets.
On April 30, 2024, we assigned the exclusive U.S. commercialization rights to the IQOS Tobacco Heating System (“IQOS System”) to 
Philip Morris International Inc. (“PMI”) pursuant to the terms of a purchase agreement entered into with PMI in October 2022 (“IQOS 
Transaction”).  In exchange for the assignment of the U.S. commercialization rights to the IQOS System, we received total cash 
payments of approximately $2.8 billion ($1.0 billion in 2022 and $1.8 billion, including interest, in the third quarter of 2023), 
$2.7 billion of which was classified as a deferred gain on our consolidated balance sheet at December 31, 2023.  Upon the assignment of 
the U.S. commercialization rights to the IQOS System, we recorded a pre-tax gain of $2.7 billion for the year ended December 31, 2024 
in our consolidated statement of earnings.
The changes in goodwill and net carrying amount of intangible assets were as follows:
2024
2023
(in millions)
Goodwill 
Other Intangible 
Assets, net
Goodwill 
Other Intangible 
Assets, net
Balance at January 1
$ 
6,791 $ 
13,686 $ 
5,177 $ 
12,384 
Changes due to:
 Acquisitions (1)
154 
(220)
1,614
1,430 
 Asset impairment 
— 
(354)
—
— 
 Amortization 
— 
(139)
—
(128) 
Balance at December 31
$ 
6,945 $ 
12,973 $ 
6,791 $ 
13,686 
(1) Substantially all of the 2023 amounts are attributable to the NJOY Transaction.  The 2024 amounts represent the measurement period adjustments
related to the NJOY Transaction.  See Note 3. Acquisition of NJOY.
At December 31, 2023, the estimated fair value of the Skoal trademark exceeded its carrying value of $3.9 billion by approximately 6% 
($0.2 billion).  Sales volumes of MST products, including Skoal, have been negatively impacted due in part to evolving adult tobacco 
consumer preferences, which has resulted in consumers increasingly moving across tobacco categories.  In connection with the 
preparation of our financial statements for the period ended June 30, 2024, we evaluated the accelerated growth of innovative tobacco 
products, including oral nicotine pouches, and the related increase in competitive activity among tobacco categories, which have 
66

contributed to reductions in sales volumes for MST products, including Skoal.  We concluded that the expected impact from the sales 
volume declines on the Skoal trademark represented a triggering event, and as a result of this conclusion, we performed an interim 
impairment assessment as of June 30, 2024.  As a result of (i) lower projected revenue and income due to lower volume assumptions, (ii) 
a decrease in the perpetual growth rate to 0% (1% at October 1, 2023 valuation) and (iii) an increase in the discount rate to 11.5% 
(11.0% at October 1, 2023 valuation), we determined the estimated fair value of the Skoal trademark as of June 30, 2024, was below its 
carrying value and recorded a non-cash, pre-tax impairment of $354 million during the second quarter of 2024, which was recorded in 
our consolidated statement of earnings for the year ended December 31, 2024.  Our estimate of the fair value and carrying value of the 
Skoal trademark at June 30, 2024 was $3.6 billion after recording the impairment.
During 2024, 2023 and 2022, our annual impairment test of goodwill and indefinite-lived intangible assets resulted in no impairment 
charges.  Based on our 2024 annual impairment test, the estimated fair values of the e-vapor reporting unit and Skoal trademark 
exceeded their carrying values by approximately 28% ($0.3 billion) and 7% ($0.3 billion), respectively.  A hypothetical 1% increase to 
the discount rate used to estimate the fair value of the e-vapor reporting unit would have resulted in an impairment charge of 
approximately $125 million during 2024.  A hypothetical 1% increase to the discount rate used to estimate the fair value of the Skoal 
trademark would have resulted in an additional impairment charge of approximately $85 million during 2024.  At December 31, 2024 
and 2023, there were no accumulated impairment losses related to goodwill.
We use an income approach to estimate the fair values of our reporting units and trademarks.  The income approach reflects the 
discounting of expected future cash flows at a rate of return that incorporates the risk-free rate for the use of those funds, the expected 
rate of inflation and the risk associated with realizing expected future cash flows.
In determining the estimated fair values of our reporting units and trademarks in 2024, 2023 and 2022, we made various judgments, 
estimates and assumptions, the most significant of which were volume, revenue, income, perpetual growth rate and discount rate.  All 
significant inputs used in the valuations are classified in Level 3 of the fair value hierarchy.
As further discussed in Note 20. Contingencies, on January 29, 2025, the U.S. International Trade Commission (“ITC”) issued its final 
determination, including the form of remedy, in the complaint filed by JUUL against Altria and certain of our affiliates, including NJOY, 
alleging patent infringement.  Due to other factors that are uncertain at this time, we are not able to estimate the impact of the ITC’s final 
determination; however, it could result in a material non-cash impairment of our e-vapor reporting unit in future periods.
Note 7.  Asset Impairment, Exit and Implementation Costs
Pre-tax asset impairment, exit and implementation costs consisted of the following for the year ended December 31, 2024:
(in millions)
Asset Impairment 
and Exit Costs
Implementation 
Costs (1)
Total
Smokeable products
$ 
31 $ 
29 $ 
60 
Oral tobacco products (2)
358 
4 
362 
Total
$ 
389 $ 
33 $ 
422 
(1) Included in marketing, administration and research costs in our consolidated statement of earnings.
(2) Includes impairment of the Skoal trademark of $354 million.  See Note 6. Goodwill and Other Intangible Assets, net.
There were no asset impairment, exit or implementation costs for the years ended December 31, 2023 and 2022.
In October 2024, we announced a multi-phase Optimize & Accelerate initiative (“Initiative”) designed to modernize our ways of 
working.  Through the Initiative, we plan to increase our organization’s speed, efficiency and effectiveness by centralizing work, 
outsourcing certain transactional tasks and streamlining, automating and standardizing processes.  We expect the design and detailed 
plans for all phases of the Initiative to be substantially complete in early 2026.
We estimate total pre-tax charges for the Initiative’s initial phases of approximately $100 million to $125 million.  Of these amounts, 
during 2024, we incurred pre-tax charges of $68 million, consisting of employee separation cost of $35 million and implementation costs 
of $33 million.  We expect to record the majority of the remaining costs for these initial phases in the first half of 2025.  Substantially all 
of these charges will result in cash expenditures and will consist of severance payments associated with employee separations, 
implementation costs for new technology and business advisory services and other costs.  Employee separation costs are recorded when 
probable and reasonably estimable.  As we further develop and finalize detailed plans for the additional phases of the Initiative, we will 
update estimated pre-tax charges for the Initiative.
We made cash payments of $11 million for the Initiative in 2024 all of which were related to implementation costs.  At December 31, 
2024, restructuring liabilities, all of which were severance liabilities, were $35 million.
67

Note 8.  Investments in Equity Securities
The carrying amount of our investments consisted of the following at December 31:
(in millions)
2024
2023
ABI
$ 
7,880 $ 
9,676 
Cronos
315 
335 
Total
$ 
8,195 $ 
10,011 
(Income) losses from our current and former investments in equity securities consisted of the following:
For the Years Ended December 31,
(in millions)
2024
2023
2022
ABI (1)
$ 
(673) (2) $ 
(539) 
$ 
1,973 
Cronos (1)
21 
46 
228 
(Income) losses from investments under equity method of 
accounting
(652)
(493)
2,201 
JUUL
— 
250 (3)
1,455 (4)
(Income) losses from investments in equity securities
$ 
(652)
$
(243)
$
3,656 
(1) Includes our share of amounts recorded by our investees and additional adjustments, if required, related to (i) the conversion from international
financial reporting standards to GAAP and (ii) adjustments to our investments required under the equity method of accounting.
(2) Includes $165 million of the total pre-tax gain on the ABI Transaction discussed below.
(3) Represents the loss as a result of the disposition of our JUUL equity securities discussed below.
(4) Represents the estimated change in fair value.  Prior to the disposition of our JUUL equity securities in March 2023, we accounted for our former
investment in JUUL as an investment in an equity security measured at fair value.
Investees’ summarized financial data for our equity method investments was as follows:
For Altria’s Year Ended December 31,
2024 (1)
2023 (1)
2022 (1)
(in millions)
ABI
Other 
Investments
ABI
Other 
Investments
ABI
Other 
Investments
Net revenues
$ 
60,103 $ 
111 $ 
59,841 $ 
87 $ 
57,267 $ 
947 
Gross profit
$ 
32,974 $ 
17 $ 
32,371 $ 
9 $ 
31,588 $ 
525 
Earnings (losses) from 
continuing operations
$ 
8,108 $ 
(48) $
7,956 $ 
(105) $
7,879 $ 
(521) 
Net earnings (losses)
$ 
8,108 $ 
(49) $
7,956 $ 
(108) $
7,879 $ 
(521) 
Net earnings (losses) attributable 
to equity investments
$ 
6,501 $ 
(47) $
6,284 $ 
(108) $
5,838 $ 
(520) 
(1) Reflects a one-quarter lag.  Other Investments reflect summarized financial data of Cronos, as well as JUUL’s financial data for the periods during
which we accounted for our former investment in JUUL as an equity method investment under the fair value option.
At September 30,
2024 (2)
2023 (2)
(in millions)
ABI
Other Investments
ABI
Other Investments
Current assets
$ 
22,525 
$ 
959 
$ 
22,835 
$ 
918 
Long-term assets
$ 
185,318 
$ 
225 
$ 
188,003 
$ 
232 
Current liabilities
$ 
31,182 
$ 
40 
$ 
35,407 
$ 
31 
Long-term liabilities
$ 
92,377 
$ 
13 
$ 
91,791 
$ 
3 
Noncontrolling interests
$ 
10,831 
$ 
50 
$ 
11,231 
$ 
(3) 
(2) Reflects a one-quarter lag.  Other Investments reflect summarized financial data of Cronos.
68

Investment in ABI
Prior to March 14, 2024, we had an approximate 10% ownership interest in ABI, consisting of approximately 185 million restricted 
shares of ABI (“Restricted Shares”) and approximately 12 million ordinary shares of ABI.  Our Restricted Shares:
▪
are unlisted and not admitted to trading on any stock exchange;
▪
are convertible by us into ordinary shares of ABI on a one-for-one basis;
▪
rank equally with ordinary shares of ABI with regards to dividends and voting rights; and
▪
have director nomination rights with respect to ABI.
On March 14, 2024, we converted 60 million of our Restricted Shares into ordinary shares of ABI.  In March 2024, we completed the 
ABI Transaction, which consisted of the following:
▪
We sold 35 million of our ABI ordinary shares in a global secondary offering for gross proceeds of approximately $2.2 billion.
▪
We sold $200 million of our ABI ordinary shares (approximately 3.3 million ordinary shares) to ABI in a private transaction.
At December 31, 2024, we had an approximate 8.1% ownership interest in ABI, consisting of approximately 125 million Restricted 
Shares and approximately 34 million ordinary shares of ABI.  As a result of the ABI Transaction, in the first quarter of 2024, we 
received pre-tax cash proceeds totaling approximately $2.4 billion and incurred transaction costs of approximately $62 million.  In 
conjunction with the ABI Transaction, we entered into accelerated share repurchase (“ASR”) transactions under two separate agreements 
with bank counterparties (collectively, “ASR Agreements”) to repurchase shares of our common stock.  For further discussion of the 
ASR Agreements, see Note 12. Capital Stock.
As a result of the ABI Transaction, we recorded the following pre-tax amounts in our consolidated statement of earnings:
(in millions)
For the Year Ended 
December 31, 2024
Gain on partial sale of our investment
$ 
165 
Transaction costs
(62) 
Total pre-tax gain on ABI Transaction
$ 
103 
▪
The pre-tax gain on the partial sale of our investment was recorded in (income) losses from investments in equity securities and
includes a $408 million gain representing the excess of the selling price of the ABI shares sold over the carrying value of those
shares, partially offset by a $243 million reclassification of the proportionate share of our pre-tax accumulated other
comprehensive losses directly attributable to ABI and our designated net investment hedges related to our investment in ABI
(see Note 9. Financial Instruments and Note 15. Other Comprehensive Earnings/Losses).
▪
The pre-tax transaction costs were approximately $62 million ($59 million in marketing, administration and research costs and
$3 million in interest and other debt expense, net), substantially all of which were underwriter fees.
In addition, in conjunction with the ABI Transaction, we recorded an income tax benefit from the partial release of a valuation allowance 
of approximately $94 million in provision for income taxes in our consolidated statement of earnings for the year ended December 31, 
2024.  For further discussion, see Note 16. Income Taxes.
Based on the most recent information provided to us by ABI, we expect to maintain the right to select two nominees for election to 
ABI’s board of directors at ABI’s 2025 annual general meeting.  We continue to account for our investment in ABI under the equity 
method of accounting because we have active representation on ABI’s board of directors and certain ABI board committees.  Through 
this representation, we believe we have the ability to exercise significant influence over the operating and financial policies of ABI and 
participate in ABI’s policy making processes.
We report our share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for us to record them in the 
concurrent period.
The fair value of our investment in ABI is based on (i) unadjusted quoted prices in active markets for ABI’s ordinary shares and is 
classified in Level 1 of the fair value hierarchy and (ii) observable inputs other than Level 1 prices, such as quoted prices for similar 
assets for the Restricted Shares and is classified in Level 2 of the fair value hierarchy.  We can convert our Restricted Shares into 
ordinary shares at our discretion.  The fair value of each Restricted Share is based on the value of an ordinary share.
At December 31, 2024, the fair value of our investment in ABI approximated its carrying value of $7.9 billion.  At December 31, 2023, 
the fair value of our investment in ABI was $12.7 billion, which exceeded its carrying value of $9.7 billion by approximately 32%.
At September 30, 2022, the fair value of our investment in ABI had declined below its carrying value by $2.5 billion or approximately 
22%.  We determined the decline in fair value to be other than temporary and recorded a non-cash, pre-tax impairment charge of 
$2.5 billion during the third quarter of 2022, which was recorded to (income) losses from investments in equity securities in our 
consolidated statement of earnings for the year ended December 31, 2022.
69

At December 31, 2024, the carrying value of our investment in ABI exceeded our share of ABI’s net assets attributable to equity holders 
of ABI by approximately $2.0 billion, representing a $0.5 billion reduction from December 31, 2023, due primarily to the ABI 
Transaction.  Substantially all of the $2.0 billion difference at December 31, 2024 is comprised of goodwill and other indefinite-lived 
intangible assets (consisting primarily of trademarks).
Investment in Cronos
At December 31, 2024, we had an approximate 40.9% ownership interest in Cronos, consisting of approximately 157 million shares, 
which we account for under the equity method of accounting.  We report our share of Cronos’s results using a one-quarter lag because 
Cronos’s results are not available in time for us to record them in the concurrent period.
The fair value of our investment in Cronos is based on unadjusted quoted prices in active markets for Cronos’s common shares and is 
classified in Level 1 of the fair value hierarchy.
At December 31, 2024, the fair value of our investment in Cronos approximated its carrying value of $315 million.  At December 31, 
2023, the fair value of our investment in Cronos was less than its carrying value by $8 million, or approximately 2%.  Based on our 
evaluation, we concluded that the decline in fair value of our investment in Cronos below its carrying value at December 31, 2023 was 
temporary and, therefore, no impairment was recorded.
At June 30, 2022, the fair value of our investment in Cronos was less than its carrying value by approximately 20%.  We determined the 
decline in fair value to be other than temporary and recorded a non-cash, pre-tax impairment charge of $107 million in the second 
quarter of 2022, which was recorded to (income) losses from investments in equity securities in our consolidated statement of earnings 
for the year ended December 31, 2022.
Former Investment in JUUL
In December 2018, we made an investment in JUUL for $12.8 billion and received a 35% economic interest in JUUL through non-
voting shares, which we converted at our election into voting shares in November 2020, and a security convertible into additional non-
voting or voting shares, as applicable, upon settlement or exercise of certain JUUL convertible securities.  At the time of the investment, 
we agreed to non-competition obligations generally requiring that we participate in the e-vapor business only through JUUL.  In 
September 2022, we exercised our option to be released from our JUUL non-competition obligations, resulting in (i) the permanent 
termination of our non-competition obligations to JUUL, (ii) the loss of our JUUL board designation rights (other than the right to 
designate one independent director so long as our ownership continued to be at least 10%), our preemptive rights, our consent rights and 
certain other rights with respect to our investment in JUUL and (iii) the conversion of our JUUL shares to single vote common stock, 
significantly reducing our voting power.
As discussed in Note 1. Background and Basis of Presentation, in March 2023, we entered into the Stock Transfer Agreement with 
JUUL under which we transferred to JUUL all of our beneficially owned JUUL equity securities and, in exchange, received a non-
exclusive, irrevocable global license to certain of JUUL’s heated tobacco intellectual property.  In addition, all other agreements between 
us and JUUL were terminated or we were removed as parties thereto, other than certain litigation-related agreements and a license 
agreement relating to our non-trademark licensable intellectual property rights in the e-vapor field, which remain in force solely with 
respect to our e-vapor intellectual property as of or prior to March 3, 2023.
Following the conversion of certain non-voting shares of JUUL into voting shares in the fourth quarter of 2020, we elected to account 
for our investment in JUUL under the fair value option.  As a result of our loss of certain rights due to our exercise of our option to be 
released from our JUUL non-competition obligations in the third quarter of 2022, we determined that we no longer had the ability to 
exercise significant influence over the operating and financial policies of JUUL.  Therefore, we were no longer able to account for our 
investment in JUUL as an equity method investment.  Beginning with the period ended September 30, 2022 and until March 3, 2023, 
when we entered into the Stock Transfer Agreement, we accounted for our former investment in JUUL as an investment in an equity 
security.  Our consolidated statements of earnings include any changes in the estimated fair value of our former investment, which were 
calculated quarterly.
The following table provides a reconciliation of the beginning and ending balance of our former investment in JUUL, which was 
classified in Level 3 of the fair value hierarchy prior to the disposition of our JUUL equity securities:
(in millions)
Investment Balance
Balance at December 31, 2022
$ 
250 
Non-cash, pre-tax (loss) on disposition included in (income) losses from investments in equity securities
(250) 
Balance at December 31, 2023
$ 
— 
2023 Financial Activity
▪
For the year ended December 31, 2023, we recorded a non-cash, pre-tax loss on the disposition of our JUUL equity securities of
$250 million as a result of entering into the Stock Transfer Agreement.  Additionally, we considered specific facts and
circumstances around the nature of the JUUL Heated Tobacco IP and determined that the fair value of such intellectual property
70

was not material to our consolidated financial statements as of the date of the transaction.  As a result, we did not record an 
asset associated with this intellectual property on our consolidated balance sheet.  The primary drivers of this conclusion were 
(i) our rights to the JUUL Heated Tobacco IP being non-exclusive, (ii) there being no product or technology transferred to us
associated with the JUUL Heated Tobacco IP and (iii) there being no connection between the JUUL Heated Tobacco IP and our
current product development plans.
2022 Financial Activity
▪
For the year ended December 31, 2022, we recorded non-cash, pre-tax unrealized losses of $1,455 million as a result of changes
in the estimated fair value of our former investment in JUUL.  The decrease in the estimated fair value was primarily driven by
(i) a decrease in the likelihood of a favorable outcome from the FDA for JUUL’s products that were marketed in the United
States, which had received marketing denial orders (“MDOs”) in June 2022 and were under additional administrative review at
the time of our subsequent quarterly valuations, (ii) a decrease in the likelihood of JUUL maintaining adequate liquidity to fund
projected cash needs, which could have resulted in JUUL seeking protection under bankruptcy or other insolvency laws, (iii)
projections of higher operating expenses resulting in lower long-term operating margins, (iv) projections of lower JUUL
revenues in the United States over time due to lower JUUL volume assumptions and (v) an increase in the discount rate due to
changes in market factors, partially offset by the effect of passage of time on the projected cash flows.
We used an income approach to estimate the fair value of our former investment in JUUL.  The income approach reflected the 
discounting of future cash flows for the U.S. and international markets at a rate of return that incorporated the risk-free rate for the use of 
those funds, the expected rate of inflation and the risks associated with realizing future cash flows.
In determining the estimated fair value of our former investment in JUUL in 2022, we made certain judgments, estimates and 
assumptions, the most significant of which were likelihood of certain potential regulatory and liquidity outcomes, sales volume, 
operating margins, discount rates and perpetual growth rates.  All significant inputs used in the valuation were classified in Level 3 of 
the fair value hierarchy.  Additionally, in determining these significant assumptions, we made judgments regarding the (i) likelihood of 
certain potential regulatory actions impacting the e-vapor category and specifically whether the FDA would ultimately authorize JUUL’s 
products, which had received the MDOs in June 2022 and were under additional administrative review at the time of our subsequent 
quarterly valuations; (ii) likelihood of JUUL maintaining adequate liquidity to fund projected cash needs, the absence of which could 
have resulted in JUUL seeking protection under bankruptcy or other insolvency laws; (iii) risk created by the number and types of legal 
cases pending against JUUL; (iv) expectations for the future state of the e-vapor category, including competitive dynamics; and (v) 
timing of international expansion plans.  Due to these uncertainties, our future cash flow projections of JUUL were based on a range of 
scenarios that considered certain potential regulatory, liquidity and market outcomes.
Note 9.  Financial Instruments
We enter into derivative financial instruments to mitigate the potential impact of certain market risks, including foreign currency 
exchange rate risk.  We use various types of derivative financial instruments, including forward contracts, options and swaps.  We do not 
enter into or hold derivative financial instruments for trading or speculative purposes.
Our investment in ABI, whose functional currency is the Euro, exposes us to foreign currency exchange risk on the carrying value of our 
investment.  To manage this risk, we may designate Euro denominated unsecured long-term notes (“foreign currency denominated 
debt”) and certain foreign exchange contracts, including cross-currency swap contracts and forward contracts (collectively, “foreign 
currency contracts”), as net investment hedges of our investment in ABI.
At December 31, 2024 and 2023, we had no outstanding foreign currency contracts.  When we have foreign currency contracts in effect, 
counterparties are domestic and international financial institutions.  Under these contracts, we are exposed to potential losses in the event 
of non-performance by these counterparties.  We manage our credit risk by entering into transactions with counterparties that have 
investment grade credit ratings, limiting the amount of exposure we have with each counterparty and monitoring the financial condition 
of each counterparty.  The counterparty agreements contain provisions that require us to maintain an investment grade credit rating.  In 
the event our credit rating falls below investment grade, counterparties to our foreign currency contracts can require us to post collateral.
The aggregate carrying value and fair value of our total long-term debt were as follows at December 31:
(in millions)
2024
2023
Carrying value
$ 
24,926 $ 
26,233 
Fair value
22,741 
24,373 
Foreign currency denominated debt included in long-term debt:
Carrying value
3,100 
3,303 
Fair value
3,059 
3,125 
71

Our estimate of the fair value of our total long-term debt is based on observable market information derived from a third-party pricing 
source and is classified in Level 2 of the fair value hierarchy.
Net Investment Hedging
We recognize changes in the carrying value of the foreign currency denominated debt due to changes in the Euro to U.S. dollar exchange 
rate in accumulated other comprehensive losses related to ABI.
We recognized pre-tax (gains) losses of our net investment hedges of $(205) million, $108 million and $(281) million for the years 
ended December 31, 2024, 2023 and 2022, respectively, in accumulated other comprehensive losses.
In addition, as a result of the ABI Transaction, for the year ended December 31, 2024, we reclassified $42 million of pre-tax gains from 
our designated net investment hedges included in accumulated other comprehensive losses to (income) losses from investments in equity 
securities in our consolidated statement of earnings.  For further discussion of the ABI Transaction and reclassification of accumulated 
other comprehensive losses, see Note 8. Investments in Equity Securities and Note 15. Other Comprehensive Earnings/Losses.
Note 10.  Short-Term Borrowings
At December 31, 2024 and 2023, we had no short-term borrowings.
In June 2023, we entered into a $2.0 billion term loan facility and borrowed the full amount available to fund a portion of the cash 
payments at the closing of the NJOY Transaction.  In July 2023, upon receipt of the remaining payment of approximately $1.8 billion 
(including interest) from PMI related to the sale of the IQOS System commercialization rights, we repaid the term loan facility in full, at 
which time the term loan facility terminated in accordance with its terms.
We have a $3.0 billion senior unsecured 5-year revolving credit agreement (“Credit Agreement”) that expires on October 24, 2028 and 
includes an option, subject to certain conditions, for us to extend the term for two additional one-year periods.  We intend to use any 
borrowings under our Credit Agreement for general corporate purposes.
At December 31, 2024 and 2023, we had availability under our Credit Agreement for borrowings of up to an aggregate principal amount 
of $3.0 billion.
Pricing for interest and fees under our Credit Agreement may be modified in the event of a change in the rating of our long-term senior 
unsecured debt.  We expect interest rates on borrowings under our Credit Agreement to be based on the Term Secured Overnight 
Financing Rate plus a percentage based on the higher of the ratings of our long-term senior unsecured debt from Moody’s Investors 
Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC (“S&P”).  The applicable percentage for borrowings under our 
Credit Agreement at December 31, 2024 was 1.0% based on our long-term senior unsecured debt ratings on that date.  Our Credit 
Agreement does not include any other rating triggers or any provisions that could require the posting of collateral.
Our Credit Agreement includes various covenants, one of which requires us to maintain a ratio of Consolidated EBITDA (earnings 
before interest, taxes, depreciation and amortization) to Consolidated Interest Expense of not less than 4.0 to 1.0, calculated as of the end 
of the applicable quarter on a rolling four quarters basis.  At December 31, 2024, we were in compliance with our covenants in our 
Credit Agreement.  The terms “Consolidated EBITDA” and “Consolidated Interest Expense,” each as defined in our Credit Agreement, 
include certain adjustments.
PM USA guarantees any borrowings under our Credit Agreement and any amounts outstanding under our commercial paper program. 
For discussion of PM USA’s guarantees, see Note 11. Long-Term Debt.
Note 11.  Long-Term Debt
Our long-term debt consisted of the following at December 31:
(in millions)
2024
2023
USD notes, 2.350% to 10.200%, interest payable semi-annually, due through 2061 (1)
$ 
21,784 $ 
22,888 
USD debenture, 7.75%, interest payable semi-annually, due 2027
42 
42 
Euro notes, 1.700% to 3.125%, interest payable annually, due through 2031 (2)
3,100 
3,303 
24,926 
26,233 
Less current portion of long-term debt
1,527 
1,121 
$ 
23,399 $ 
25,112 
(1)  Weighted-average coupon interest rate of 4.6% and 4.5% at December 31, 2024 and 2023, respectively.
(2) Weighted-average coupon interest rate of 2.5% at December 31, 2024 and 2023.
72

At December 31, 2024, our outstanding long-term debt consisted of the following:
(in millions)
Type
Face Value
Interest Rate
Issuance
Maturity
USD notes
$750
2.350%
May 2020
May 2025
Euro notes
€750
1.700%
February 2019
June 2025
USD notes
$1,069
4.400%
February 2019
February 2026
USD notes
$500
2.625%
September 2016
September 2026
USD debenture
$42
7.750%
January 1997
January 2027
Euro notes
€1,000
2.200%
February 2019
June 2027
USD notes
$500
6.200%
November 2023
November 2028
USD notes
$1,906
4.800%
February 2019
February 2029
USD notes
$750
3.400%
May 2020
May 2030
Euro notes
€1,250
3.125%
February 2019
June 2031
USD notes
$1,750
2.450%
February 2021
February 2032
USD notes
$500
6.875%
November 2023
November 2033
USD notes
$177
9.950%
November 2008
November 2038
USD notes
$208
10.200%
February 2009
February 2039
USD notes
$2,000
5.800%
February 2019
February 2039
USD notes
$1,500
3.400%
February 2021
February 2041
USD notes
$900
4.250%
August 2012
August 2042
USD notes
$650
4.500%
May 2013
May 2043
USD notes
$1,800
5.375%
October 2013
January 2044
USD notes
$1,500
3.875%
September 2016
September 2046
USD notes
$2,500
5.950%
February 2019
February 2049
USD notes
$500
4.450%
May 2020
May 2050
USD notes
$1,250
3.700%
February 2021
February 2051
USD notes
$271
6.200%
February 2019
February 2059
USD notes
$1,000
4.000%
February 2021
February 2061
At December 31, 2024, aggregate maturities of our long-term debt were as follows:
(in millions)
Aggregate 
Maturities
2025
$ 
1,527 
2026
1,569 
2027
1,078 
2028
500 
2029
1,906 
Thereafter
18,550 
25,130 
Less:
debt issuance costs
128 
debt discounts
76 
$ 
24,926 
At December 31, 2024 and 2023, accrued interest on long-term debt of $389 million and $410 million, respectively, was included in 
other accrued liabilities on our consolidated balance sheets.
During the first quarter of 2024, we repaid in full at maturity our 4.000% and 3.800% senior unsecured notes in the aggregate principal 
amounts of $776 million and $345 million, respectively.
73

For a discussion of the fair value of our long-term debt and the designation of our Euro denominated senior unsecured notes as a net 
investment hedge of our investment in ABI, see Note 9. Financial Instruments.
All of our notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future senior 
unsecured indebtedness.  Following the occurrence of both (i) a change of control of Altria and (ii) the notes ceasing to be rated 
investment grade by each of Moody’s, S&P and Fitch Ratings Inc., we will be required to make an offer to purchase the notes at a price 
equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest to the date of repurchase as and to the 
extent set forth in the terms of the notes.
▪
PM USA Guarantees: PM USA (“Guarantor”), which is a 100% owned subsidiary of Altria Group, Inc. (“Parent”), has
guaranteed the Parent’s obligations under its outstanding debt securities, any borrowings under its Credit Agreement and any amounts
outstanding under its commercial paper program (“Guarantees”).  Pursuant to the Guarantees, the Guarantor fully and unconditionally
guarantees, as primary obligor, the payment and performance of the Parent’s obligations under the guaranteed debt instruments
(“Obligations”), subject to release under certain customary circumstances as noted below.
The Guarantees provide that the Guarantor guarantees the punctual payment when due, whether at stated maturity, by acceleration or 
otherwise, of the Obligations.  The liability of the Guarantor under the Guarantees is absolute and unconditional irrespective of: any lack 
of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, 
manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any 
consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any 
release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other 
circumstance that might otherwise constitute a defense available to, or a discharge of, the Parent or the Guarantor.
The Parent is a holding company; therefore, its access to the operating cash flows of its subsidiaries consists of cash received from the 
payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries.  Neither the Guarantor nor 
other subsidiaries of the Parent that are not guarantors of the Obligations are limited by contractual obligations on their ability to pay 
cash dividends or make other distributions with respect to their equity interests.
Note 12.  Capital Stock
At December 31, 2024, we had 12 billion shares of authorized common stock; issued, repurchased and outstanding shares of common 
stock consisted of the following:
Shares Issued
Shares 
Repurchased
Shares Outstanding
Balances, December 31, 2021
2,805,961,317 
(982,785,699) 
1,823,175,618 
Stock award activity
— 
514,816 
514,816 
Repurchases of common stock
— 
(38,156,312) 
(38,156,312) 
Balances, December 31, 2022
2,805,961,317 
(1,020,427,195) 
1,785,534,122 
Stock award activity
— 
676,495 
676,495 
Repurchases of common stock
— 
(22,748,842) 
(22,748,842) 
Balances, December 31, 2023
2,805,961,317 
(1,042,499,542) 
1,763,461,775 
Stock award activity
— 
687,715 
687,715 
Repurchases of common stock
— 
(73,497,623) 
(73,497,623) 
Balances, December 31, 2024
2,805,961,317 
(1,115,309,450) 
1,690,651,867 
At December 31, 2024, we had 23,991,145 shares of common stock reserved for stock-based awards under our stock plans.
At December 31, 2024, we had 10 million authorized shares of serial preferred stock, $1.00 par value; no shares of serial preferred stock 
have been issued.
▪
Dividends: In the third quarter of 2024, our Board of Directors (“Board of Directors” or “Board”) approved a 4.1% increase in
the quarterly dividend rate to $1.02 per share of our common stock versus the previous rate of $0.98 per share.  The current annualized
dividend rate is $4.08 per share.  Future dividend payments remain subject to the discretion of our Board.
▪
Share Repurchases: In January 2023, our Board authorized a $1.0 billion share repurchase program (“January 2023 share
repurchase program”), which we completed in December 2023.
In January 2024, our Board authorized a $1.0 billion share repurchase program that it increased to $3.4 billion in March 2024 (as 
increased, “January 2024 share repurchase program”).  We subsequently entered into ASR Agreements to repurchase shares of our 
common stock having an aggregate value of $2.4 billion (“Repurchase Price”).  In the first half of 2024, we paid the Repurchase Price 
74

and received 53.9 million shares of our common stock.  The total number of shares repurchased under the ASR Agreements was based 
on volume-weighted average prices of our common stock during the term of the ASR transactions, less a discount.  We funded the ASR 
transactions with proceeds from the ABI Transaction.  The ASR transactions were accounted for as equity transactions and included in 
cost of repurchased stock on our consolidated balance sheet when the shares were received.  We completed the January 2024 share 
repurchase program in December 2024.
In January 2025, our Board authorized a new $1.0 billion share repurchase program, which we expect to complete by December 31, 
2025.  The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program 
remains subject to the discretion of our Board.
Our total share repurchase activity was as follows for the years ended December 31:
January 2024 Share 
Repurchase Program
January 2023 Share 
Repurchase Program
January 2021 Share 
Repurchase Program
(in millions, except per share data)
2024 (1)
2023
2022 (2)
Total number of shares repurchased
73.5 
22.7 
38.1 
Aggregate cost of shares repurchased
$ 
3,400 $ 
1,000 $ 
1,825 
Average price per share of shares repurchased
$ 
46.26 $ 
43.96 $ 
47.83 
(1) Includes 53.9 million shares repurchased under the ASR Agreements at an average price per share of $44.50.
(2) In January 2021, our Board authorized a $2.0 billion share repurchase program that it expanded to $3.5 billion in October 2021, which we completed
in December 2022.
Note 13.  Stock Plans
In 2020, our Board adopted, and shareholders approved, the Altria Group, Inc. 2020 Performance Incentive Plan (“2020 Plan”) under 
which we may grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance stock units 
(“PSUs”) and other stock-based awards, as well as cash-based annual and long-term incentive awards to our employees.  Any awards 
granted under the 2020 Plan may be in the form of performance-based awards, including PSUs subject to the achievement or satisfaction 
of performance goals and performance cycles.  We may issue up to 25 million shares of common stock under the 2020 Plan prior to May 
31, 2025.  In addition, under the 2015 Stock Compensation Plan for Non-Employee Directors (“Directors Plan”), we may grant up to one 
million shares of common stock to members of the Board who are not employees of Altria, provided that no awards can be made under 
the Directors Plan after the awards made immediately following our 2025 Annual Meeting of Shareholders.
At December 31, 2024, we had 18,507,747 and 533,843 shares available to be granted under the 2020 Plan and the Directors Plan, 
respectively.
▪
RSUs: During the vesting period, RSUs include nonforfeitable rights to dividend equivalents and may not be sold, assigned,
pledged or otherwise encumbered.  RSUs are subject to forfeiture if certain employment conditions are not met.  We estimate the
number of awards expected to be forfeited and adjust this estimate when subsequent information indicates that the actual number of
forfeitures is likely to differ from previous estimates.  RSUs generally vest three years after the grant date.
We amortize to expense ratably over the restriction period, which is generally three years, the fair value of the RSUs at the date of grant, 
net of estimated forfeitures.  We recorded pre-tax compensation expense related to RSUs for the years ended December 31, 2024, 2023 
and 2022 of $50 million, $47 million and $41 million, respectively.  We recorded a deferred tax benefit related to this compensation 
expense of $12 million, $12 million and $10 million for the years ended December 31, 2024, 2023 and 2022, respectively.  The 
unamortized compensation expense related to RSUs was $86 million at December 31, 2024, which we expect to be recognized over a 
weighted-average period of approximately two years.
RSU activity was as follows:
Number of Shares
Weighted-Average 
Grant Date Fair 
Value Per Share
Balance at December 31, 2023
3,472,801 $ 
46.84 
Granted
1,546,213 $ 
43.29 
Vested
(847,647) $ 
44.94 
Forfeited
(197,882) $ 
46.74 
Balance at December 31, 2024
3,973,485 $ 
45.87 
75

The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2024, 2023 and 2022 was $67 million, 
$56 million and $59 million, respectively, or $43.29, $46.38 and $49.22 per RSU, respectively.  The total vesting date fair value of 
RSUs that vested during the years ended December 31, 2024, 2023 and 2022 was $35 million, $40 million and $29 million, respectively.
▪
PSUs: We granted an aggregate of 290,980, 255,601 and 215,205 of PSUs during 2024, 2023 and 2022, respectively.  The
payout of the PSUs is based on the extent to which we achieve certain performance measures over the three-year performance period.
Performance measures consist of our adjusted diluted earnings per share compounded annual growth rate and a cash conversion
measure.  Additionally, the payout resulting from the performance measures is then adjusted up or down by a total shareholder return
(“TSR”) performance multiplier, which depends on our relative TSR to a predetermined peer group.  PSUs are subject to forfeiture if
certain employment conditions are not met.  At December 31, 2024, we had 750,826 PSUs outstanding, with a weighted-average grant
date fair value of $46.87 per PSU.  We amortize to expense over the performance period the fair value of PSUs at the date of grant, net
of estimated forfeitures.  We recorded pre-tax compensation expense related to PSUs for the years ended December 31, 2024, 2023 and
2022 of $6 million, $11 million and $9 million, respectively.  The unamortized compensation expense related to PSUs was $13 million
at December 31, 2024.
Note 14.  Earnings per Share
We calculated basic and diluted earnings per share (“EPS”) using the following:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Net earnings
$ 
11,264 $ 
8,130 $ 
5,764 
Less: Distributed and undistributed earnings attributable to share-based awards
(28)
(17)
(13) 
Earnings for basic and diluted EPS
$ 
11,236 $ 
8,113 $ 
5,751 
Weighted-average shares for basic and diluted EPS
1,718 
1,777 
1,804 
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities 
and, therefore, are included in our EPS calculation pursuant to the two-class method.
76

Note 15.  Other Comprehensive Earnings/Losses
Changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria were as 
follows:
(in millions)
Benefit Plans
ABI
Currency
Translation
Adjustments
and Other
Accumulated
Other
Comprehensive
Losses
Balances, December 31, 2021
$ 
(1,612) 
$ 
(1,512) 
$ 
68 
$ 
(3,056) 
Other comprehensive earnings (losses) before reclassifications
145 
275 
(33)
387
Deferred income taxes
(35)
(65)
— 
(100) 
Other comprehensive earnings (losses) before 
reclassifications, net of deferred income taxes
110 
210 
(33)
287
Amounts reclassified to net earnings
88 
(85)
(1)
2 
Deferred income taxes
(22)
18
— 
(4) 
Amounts reclassified to net earnings, net of 
deferred income taxes
66 
(67)
(1)
(2) 
Other comprehensive earnings (losses), net of deferred 
income taxes
176 
143 (1)
(34)
285
Balances, December 31, 2022
(1,436) 
(1,369) 
34 
(2,771) 
Other comprehensive earnings (losses) before reclassifications
(48)
178
(28)
102
Deferred income taxes
9 
(35)
9
(17) 
Other comprehensive earnings (losses) before 
reclassifications, net of deferred income taxes
(39)
143
(19) 
85 
Amounts reclassified to net earnings
(26)
39
— 
13 
Deferred income taxes
8 
(8)
—
— 
Amounts reclassified to net earnings, net of 
deferred income taxes
(18)
31
— 
13 
Other comprehensive earnings (losses), net of deferred 
income taxes
(57)
174 (1)
(19) 
98 
Balances, December 31, 2023
(1,493) 
(1,195) 
15 
(2,673) 
Other comprehensive earnings (losses) before reclassifications
142 
(22)
(5)
115 
Deferred income taxes
(36)
(1)
— 
(37) 
Other comprehensive earnings (losses) before 
reclassifications, net of deferred income taxes
106 
(23)
(5)
78 
Amounts reclassified to net earnings
(7)
251
— 
244 
Deferred income taxes
2 
(51)
—
(49) 
Amounts reclassified to net earnings, net of 
deferred income taxes 
(5)
200
— 
195 
Other comprehensive earnings (losses), net of deferred 
income taxes
101 
177 (1)
(5)
273
Balances, December 31, 2024
$ 
(1,392) 
$ 
(1,018) 
$ 
10 
$ 
(2,400) 
(1) Primarily reflects our share of ABI’s currency translation adjustments and the impact of our designated net investment hedges related to our
investment in ABI.  For further discussion of designated net investment hedges, see Note 9. Financial Instruments.
77

Pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings were as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Benefit Plans: (1)
Net loss
$ 
29 
$ 
8 $ 
127 
Prior service credit
(36)
(34)
(39) 
(7)
(26)
88 
ABI (2)
251 (3)
39 
(85) 
Currency Translation Adjustments and Other
— 
— 
(1) 
Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 
244 
$ 
13 $ 
2 
(1)  Amounts are included in net periodic benefit income, excluding service cost.  For further details, see Note 18. Benefit Plans.
(2) Amounts are included in (income) losses from investments in equity securities.
(3) Primarily reflects the impact of the ABI Transaction.  For the year ended December 31, 2024, we reclassified $243 million from our accumulated
other comprehensive losses of which $285 million is directly attributable to ABI, partially offset by $42 million from our designated net investment
hedges related to our investment in ABI.  For further information, see Note 8. Investments in Equity Securities and Note 9. Financial Instruments.
Note 16.  Income Taxes
In August 2022, the U.S. Government enacted legislation commonly referred to as the Inflation Reduction Act that became effective 
January 1, 2023.  The main provisions of the Inflation Reduction Act that impact us are: (i) a 15% corporate alternative minimum tax 
(“Corporate AMT”) and (ii) a 1% excise tax on share repurchases, which is recorded in equity on our consolidated statements of 
stockholders’ equity (deficit).
We are considered an “applicable corporation” for purposes of Corporate AMT.  We expect our regular federal income tax liability will 
generally exceed our Corporate AMT liability; however, certain unique circumstances may result in our Corporate AMT liability 
exceeding our regular federal income tax liability, including when tax losses are reported in a different year than book losses.
Earnings (losses) before income taxes and provision (benefit) for income taxes consisted of the following:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Earnings (losses) before income taxes:
United States
$ 
13,680 $ 
10,971 $ 
7,628 
Outside United States
(22)
(43)
(239) 
Total
$ 
13,658 $ 
10,928 $ 
7,389 
Provision (benefit) for income taxes:
Current:
Federal
$ 
927 $ 
2,346 $ 
1,968 
State and local
516 
681 
603 
Outside United States
— 
1 
1 
1,443 
3,028 
2,572 
Deferred:
Federal
764 
(133)
(893)
State and local
187 
(97)
(54)
951 
(230)
(947)
Total provision for income taxes
$ 
2,394 $ 
2,798 $ 
1,625 
Our U.S. subsidiaries join in the filing of a U.S. federal consolidated income tax return.  The U.S. federal income tax statute of 
limitations remains open for the year 2017 and forward, with years 2017 through 2023 currently under examination by the Internal 
Revenue Service (“IRS”) as part of an audit conducted in the ordinary course of business.  State statutes of limitations will also generally 
remain open for the year 2017 and forward.  Certain of our state tax returns are currently under examination by various states as part of 
routine audits conducted in the ordinary course of business.
78

A reconciliation of the beginning and ending unrecognized tax benefits was as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Balance at beginning of year
$ 
1,608 $ 
69 $ 
53 
Additions based on tax positions related to the current year
— 
1,548 
1 
Additions for tax positions of prior years
33 
— 
16 
Reductions for tax positions related to IRS Agreement
(1,343) 
— 
— 
Reductions for tax positions of prior years
(16)
(6)
— 
Tax settlements
— 
(3)
(1)
Balance at end of year
$ 
282 $ 
1,608 $ 
69 
The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate at December 31, 2024, was 
$189 million, along with $27 million affecting deferred taxes.  The amount of unrecognized tax benefits that, if recognized, would 
impact the effective tax rate at December 31, 2023, was $35 million, along with $1,573 million affecting deferred taxes, a portion of 
which would also impact the effective tax rate due to the release of a valuation allowance, as discussed below.
In October 2024, we entered into an agreement with the IRS (“IRS Agreement”) regarding the tax treatment of a $6.4 billion ordinary 
loss we recognized in 2023 for cash tax purposes with respect to a portion of our tax basis associated with our former investment in 
JUUL.  In 2023, we fully reserved for the tax benefit associated with this ordinary loss by recording an unrecognized tax benefit of 
$1,548 million.  There was no impact to our consolidated statement of earnings for the year ended December 31, 2023.  In addition, the 
$1,548 million increase in unrecognized tax benefits was partially offset by $428 million associated with an indirect deferred tax benefit 
caused by our estimated Corporate AMT credit carryforward.  Consistent with the terms of the IRS Agreement, we claimed a 
$4.0 billion ordinary loss and a $2.4 billion capital loss on our 2023 tax return.  For the year ended December 31, 2024, we recorded a 
tax benefit of $887 million due to the reversal of the unrecognized tax benefit in our consolidated statement of earnings, resulting in the 
partial release of a valuation allowance against our JUUL-related losses as discussed below.  The reversals of the unrecognized tax 
benefit and indirect deferred tax benefit caused by our estimated Corporate AMT credit carryforward in 2023 resulted in a net decrease 
of $1,120 million in other liabilities on our consolidated balance sheet at December 31, 2024.
At December 31, 2024, 2023 and 2022, the amount of accrued interest and penalties on our consolidated balance sheets was $18 million, 
$36 million and $18 million, respectively.  For the years ended December 31, 2024, 2023 and 2022, we recognized in our consolidated 
statements of earnings $(24) million, $20 million and $8 million, respectively, of gross interest (income) expense and penalties 
associated with uncertain tax positions.  We recognize accrued interest and penalties associated with uncertain tax positions as part of the 
tax provision.
We are subject to income taxation in many jurisdictions.  Unrecognized tax benefits reflect the differences between tax positions we 
have taken or expect to take on income tax returns and the amounts recognized in our financial statements.  Resolution of the related tax 
positions with the relevant tax authorities may take many years to complete, and such timing is not entirely within our control.  It is 
reasonably possible that within the next 12 months certain examinations will be resolved, which could result in a decrease in 
unrecognized tax benefits of approximately $1 million.
79

A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to earnings before income 
taxes was as follows:
For the Years Ended December 31,
2024
2023
2022
(dollars in millions)
$
%
$
%
$
%
U.S. federal statutory rate
$ 
2,868 
 21.0 %
$ 
2,295 
 21.0 %
$ 
1,552 
 21.0 %
Increase (decrease) resulting from:
State and local income taxes, net of federal tax benefit
557 
 4.1 
463 
 4.2 
435 
 5.9 
Tax basis in foreign investments
(11)
 (0.1)
34 
 0.3 
11 
 0.1 
Uncertain tax positions
(15)
 (0.1)
8 
 0.1 
— 
 — 
Investment in ABI
(35)
 (0.3)
(37)
 (0.3)
(24)
 (0.3)
Investment in JUUL
— 
 — 
53 
 0.5 
306 
 4.1 
Investment in Cronos
3 
 — 
11 
 0.1 
30 
 0.4 
Valuation allowance releases
(939)
 (6.9)
— 
 — 
(664)
 (9.0)
Other
(34)
 (0.2)
(29)
 (0.3)
(21)
 (0.2)
Effective tax rate
$ 
2,394 
 17.5 %
$ 
2,798 
 25.6 %
$ 
1,625 
 22.0 %
The tax provision in 2024 included tax benefits of $939 million due primarily to the release of valuation allowances recorded against a 
deferred tax asset related to our JUUL-related losses as a result of the IRS Agreement and the ABI Transaction, partially offset by state 
tax expense, net of federal benefit, of $557 million.
The tax provision in 2023 included state tax expense, net of federal benefit, of $463 million and tax expense of $53 million for a 
valuation allowance recorded against a deferred tax asset related to the disposition of our former investment in JUUL.
The tax provision in 2022 included tax benefits of $664 million due primarily to the release of valuation allowances related to the 
anticipated ability to utilize a portion of existing capital losses.  These tax benefits were partially offset by tax expense of $306 million 
for a valuation allowance recorded against a deferred tax asset related to the decreases in the estimated fair value of our former 
investment in JUUL and by the state tax treatment of the impairment charge on our investment in ABI.
The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following at 
December 31:
(in millions)
2024
2023
Deferred income tax assets:
Accrued postretirement and postemployment benefits
$ 
270 $ 
302 
Settlement charges
585 
644 
JUUL-related losses
207 
2,028 
Investment in Cronos
404 
397 
IQOS deferred gain
— 
691 
Research and development costs
112 
86 
Net operating losses and tax credit carryforwards
224 
217 
Other
— 
39 
Total deferred income tax assets
1,802 
4,404 
Deferred income tax liabilities:
Property, plant and equipment
(235)
(237)
Intangible assets
(3,032) 
(3,210) 
Investment in ABI
(1,370) 
(1,391) 
Accrued pension costs
(108) 
(81) 
Other
(133) 
— 
Total deferred income tax liabilities
(4,878) 
(4,919) 
Valuation allowances
(668)
(2,256)
Net deferred income tax liabilities
$ 
(3,744) $ 
(2,771) 
80

At December 31, 2024, we had JUUL-related gross capital loss carryforwards of $1.0 billion available to offset capital gains through 
2028.  We had estimated gross federal, state and foreign tax net operating losses (“NOLs”) of $374 million, $1,066 million and 
$38 million, respectively.  The federal NOLs, a majority of the state NOLs and the foreign NOLs have indefinite carryforward periods.
After giving effect to the IRS Agreement and $1.7 billion of JUUL-related capital losses previously utilized against capital gains related 
to the IQOS Transaction, we have $5.7 billion (which includes a $3.5 billion outside basis difference in a domestic subsidiary, a $1.2 
billion outside basis difference in a foreign subsidiary and $1.0 billion of capital loss carryforwards) of the $12.8 billion tax loss related 
to our former investment in JUUL remaining to offset future potential capital gains.  For financial statement purposes, none of the tax 
benefit for the remaining $5.7 billion was recognized at December 31, 2024.
A reconciliation of the beginning and ending valuation allowances was as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Balance at beginning of year
$ 
2,256 $ 
2,800 $ 
3,097 
Additions to valuation allowance charged to income tax expense
244 
114 
429 
Reductions to valuation allowance credited to income tax benefit
(1,337) 
(6)
(730)
(Reductions) additions to valuation allowance due to NJOY Transaction (no 
impact to earnings)
(4)
12
— 
Reductions to valuation allowance offset to deferred tax asset (no impact to 
earnings)
(491)
(663)
— 
Foreign currency translation
— 
(1)
4
Balance at end of year
$ 
668 $ 
2,256 $ 
2,800 
We determine deferred tax assets and liabilities based on the differences between the financial statement and tax bases of assets and 
liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse.  We record a valuation allowance 
when it is more likely than not that some portion or all of a deferred tax asset will not be realized.  We determine the realizability of 
deferred tax assets based on the weight of all available positive and negative evidence.  In reaching this determination, we consider the 
character of the assets and the possible sources of taxable income of the appropriate character within the available carryback and 
carryforward periods available under the tax law.  As has occurred in prior periods, there is a potential that sufficient positive evidence 
may be available in future periods to cause us to reduce or eliminate the valuation allowance on certain deferred tax assets.  That change 
to the valuation allowance would result in the recognition of previously unrecognized deferred tax assets and a decrease in income tax 
expense in the period the release is recorded.
The additions to valuation allowances during 2024 were due primarily to deferred tax assets recorded in connection with our JUUL-
related capital loss carryforwards.  The reductions to valuation allowances during 2024 were due primarily to the $4.0 billion of ordinary 
losses recognized as part of the IRS Agreement, the reduction of a deferred tax asset for the portion of our JUUL-related capital losses 
that is now part of our tax basis in the shares of a domestic subsidiary and the ABI Transaction.  This outside basis difference of the 
domestic subsidiary is not recognized as a deferred tax asset since we do not expect the temporary difference to reverse in the 
foreseeable future.  The cumulative valuation allowance at December 31, 2024 was primarily attributable to deferred tax assets recorded 
in connection with our investment in Cronos ($402 million) and our JUUL-related capital loss carryforwards ($207 million).
The additions to valuation allowances during 2023 were due primarily to deferred tax assets recorded in connection with our former 
investment in JUUL.  The reductions to valuation allowances during 2023 were due primarily to the reduction of a deferred tax asset for 
the portion of our JUUL capital losses that is now part of our tax basis in the shares of a foreign subsidiary.  This outside basis difference 
of the foreign subsidiary is not recognized as a deferred tax asset since we do not expect the temporary difference to reverse in the 
foreseeable future.  The cumulative valuation allowance at December 31, 2023 was primarily attributable to deferred tax assets recorded 
in connection with our tax basis in the shares of a domestic subsidiary ($1,808 million) and our investment in Cronos ($397 million).
The additions to valuation allowances during 2022 were due primarily to deferred tax assets recorded in connection with decreases in the 
estimated fair value of our former investment in JUUL.  The reductions to valuation allowances during 2022 were due primarily to the 
anticipated ability to utilize a portion of existing losses related to our former investment in JUUL and the abandonment of our Cronos 
warrant.  The cumulative valuation allowance at December 31, 2022 was primarily attributable to deferred tax assets recorded in 
connection with our former investment in JUUL ($2,394 million) and our investment in Cronos ($379 million).
For a discussion regarding our former investment in JUUL and current investments in ABI and Cronos, see Note 8. Investments in 
Equity Securities.
81

Note 17.  Segment Reporting
At December 31, 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 products 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”), which is Altria’s Chief Executive Officer, 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.  Our CODM uses OCI for planning, forecasting and evaluating 
business and financial performance of the segments, including allocating capital and other resources 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.  Substantially all of our long-lived assets were located in 
the United States at December 31, 2024.  Segment goodwill and other intangible assets, net, are disclosed in Note 6. Goodwill and Other 
Intangible Assets, net.  The accounting policies of the segments were the same at December 31, 2024 as those described in Note 2. 
Summary of Significant Accounting Policies.
Segment data were as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Net revenues:
Smokeable products
$ 
21,204 
$ 
21,756 
$ 
22,476 
Oral tobacco products
2,776 
2,667 
2,580 
All other
38 
60 
40 
Net revenues
$ 
24,018 
$ 
24,483 
$ 
25,096 
Earnings before income taxes:
OCI:
Smokeable products
$ 
10,821 
$ 
10,670 
$ 
10,688 
Oral tobacco products
1,449 
1,722 
1,632 
All other
(414)
(74)
(36) 
Amortization of intangibles
(139)
(128)
(73) 
General corporate expenses
(476)
(643)
(292) 
Operating income
11,241 
11,547 
11,919 
Interest and other debt expense, net
1,037 
989 
1,058 
Net periodic benefit income, excluding service cost 
(102)
(127)
(184) 
(Income) losses from investments in equity securities
(652)
(243)
3,656 
Gain on the sale of IQOS System commercialization rights
(2,700) 
— 
— 
Earnings before income taxes
$ 
13,658 
$ 
10,928 
$ 
7,389 
82

Smokeable products segment OCI consisted of the following, including expenses under the significant expense principle in accordance 
with ASU No. 2023-07:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Net revenues
$ 
21,204 
$ 
21,756 
$ 
22,476 
Settlement charges (1)
(3,460) 
(3,711) 
(3,908) 
Excise taxes on products sold
(3,469) 
(3,869) 
(4,289) 
Other segment items (2)
(3,454) 
(3,506) 
(3,591) 
Operating companies income
$ 
10,821 
$ 
10,670 
$ 
10,688 
(1) Represents charges related to State Settlement Agreements included in cost of sales.  For additional information, see Health Care Cost Recovery
Litigation in Note 20. 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 ASU 
No. 2023-07.  Other segment items for our oral tobacco products segment include manufacturing, asset impairment, marketing, 
administration and research costs, excise taxes on products sold and other costs.  Total oral tobacco products other segment items were 
$1,327 million, $945 million and $948 million for the years ended December 31, 2024, 2023 and 2022, 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.
The smokeable products segment included net revenues of $20,066 million, $20,665 million and $21,457 million for the years ended 
December 31, 2024, 2023 and 2022, respectively, related to cigarettes and net revenues of $1,138 million, $1,091 million and $1,019 
million for the years ended December 31, 2024, 2023 and 2022, respectively, related to cigars.
Substantially all of our consolidated net revenues for the years ended December 31, 2024, 2023 and 2022 were from sales generated in 
the United States.  For the years ended December 31, 2024, 2023 and 2022, we had one customer that accounted for approximately 22%, 
25% and 24% of our consolidated net revenues, respectively, and one customer that accounted for approximately 20%, 23% and 23% of 
our consolidated net revenues, respectively.  Substantially all the net revenues from these customers were reported in the smokeable 
products and oral tobacco products segments.  No other customer accounted for more than 10% of our consolidated net revenues for the 
years ended December 31, 2024, 2023 and 2022.
Details of our depreciation expense and capital expenditures were as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Depreciation expense:
Smokeable products
$ 
67 
$ 
73 
$ 
87 
Oral tobacco products
42 
37 
33 
General corporate and other
38 
34 
33 
Total depreciation expense
$ 
147 
$ 
144 
$ 
153 
Capital expenditures:
Smokeable products
$ 
54 
$ 
77 
$ 
68 
Oral tobacco products
39 
59 
90 
General corporate and other
49 
60 
47 
Total capital expenditures
$ 
142 
$ 
196 
$ 
205 
83

The comparability of OCI for our reportable segments was affected by the following:
▪
Non-Participating Manufacturer (“NPM”) Adjustment Items: We recorded net pre-tax income for NPM adjustment items
as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Smokeable products segment
$ 
(29)
$
(29)
$
(63) 
Interest and other debt expense, net
2 
(21)
(5)
Total
$ 
(27) 
$ 
(50)
$
(68) 
We recorded the amounts shown in the table shown above in our smokeable products segment as reductions to cost of sales in our 
consolidated statements of earnings, which resulted in 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 (“NPM Adjustment Items”).  For further discussion, see Health Care Cost Recovery Litigation in Note 20. Contingencies.
▪
Asset Impairment, Exit and Implementation Costs: We recorded a non-cash, pre-tax impairment of the Skoal trademark of
$354 million for the year ended December 31, 2024 in our oral tobacco products segment.  In addition, we recorded exit and
implementation costs of $68 million related to the Initiative for the year ended December 31, 2024.  For a breakdown of these costs by
segment, see Note 7. Asset Impairment, 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 Years Ended December 31,
(in millions)
2024
2023
2022
Smokeable products segment
$ 
70 $ 
69 $ 
101 
General corporate expenses
30 
350 
27 
Interest and other debt expense, net
1 
11 
3 
Total
$ 
101 $ 
430 $ 
131 
We recorded the amounts shown in the table above in our smokeable products segment and general corporate expenses in marketing, 
administration and research costs in our consolidated statements of earnings.  For further discussion, see Note 20. 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 year ended December 31, 2024, using this approach, we
recorded the majority of our pre-tax R&D expense of $208 million 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 years ended December 31, 2023 and 2022, the
majority of our pre-tax R&D expense of $220 million and $162 million, respectively, was recorded in our smokeable products segment.
Note 18.  Benefit Plans
Our subsidiaries sponsor noncontributory defined benefit pension plans covering certain employees of Altria and our subsidiaries.  
Employees hired on or after a date specific to their employee group are not eligible to participate in these noncontributory defined 
benefit pension plans but are instead eligible to participate in a defined contribution plan with enhanced benefits.  We also provide 
postretirement health care and other benefits to certain retired employees.
We measure the plan assets and benefit obligations of our pension plans and postretirement plans at December 31 of each year.
We base the discount rates for our plans on a yield curve developed from a model portfolio of high-quality corporate bonds with 
durations that match the expected future cash flows of the pension and postretirement benefit obligations.
84

▪
Obligations and Funded Status: Benefit obligations, plan assets and funded status for our pension and postretirement plans
were as follows at December 31:
Pension
Postretirement
(in millions)
2024
2023
2024
2023
Change in benefit obligation:
 Benefit obligation at beginning of year
$ 
6,428 $ 
6,292 
$ 
1,246 $ 
1,275 
 Service cost
41 
39 
15 
15 
 Interest cost
321 
333 
62 
65 
 Benefits paid
(457)
(460)
(91)
(96)
 Actuarial (gains) losses
(251)
224
(153)
(10)
 Plan amendments
— 
— 
(1)
(3)
Benefit obligation at end of year
6,082 
6,428 
1,078 
1,246 
Change in plan assets:
 Fair value of plan assets at beginning of year
6,775 
6,603 
102 
122 
 Actual return on plan assets
209 
612 
12 
13 
 Employer contributions
18 
20 
— 
— 
 Benefits paid
(457)
(460)
(30)
(33)
Fair value of plan assets at end of year
6,545 
6,775 
84 
102 
 Funded status at December 31
$ 
463 $ 
347 
$ 
(994) $ (1,144)
Amounts recognized on our consolidated balance sheets:
 Other assets
$ 
624 $ 
506 
$ 
— $ 
— 
 Other accrued liabilities
(25)
(29)
(59)
(65)
 Accrued pension costs
(136)
(130)
— 
— 
 Accrued postretirement health care costs
— 
— 
(935)
(1,079)
$ 
463 $ 
347 
$ 
(994) $ (1,144)
The table above presents the projected benefit obligation for our pension plans.  The accumulated benefit obligation, which represents 
benefits earned to date, for our pension plans was $5.9 billion and $6.3 billion at December 31, 2024 and 2023, respectively.
Actuarial gains for our pension plans for the year ended December 31, 2024 were due primarily to a higher discount rate.  Actuarial 
gains for our postretirement plans for the year ended December 31, 2024 were due primarily to lower assumed health care plans 
participation rates and a higher discount rate.  Actuarial losses for our pension plans for the year ended December 31, 2023 were due 
primarily to a lower discount rate.  Actuarial gains for our postretirement plans for the year ended December 31, 2023 were due 
primarily to a planned change in healthcare provider effective January 2025, and other items, partially offset by actuarial losses 
attributable to a lower discount rate.
For pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2024 and 2023, our accumulated benefit 
obligation was $140 million and $142 million, respectively.  For pension plans with projected benefit obligations in excess of plan assets 
at December 31, 2024 and 2023, our projected benefit obligation was $161 million and $159 million, respectively.  Additionally, at 
December 31, 2024 and 2023, there were no plan assets for these plans.
At December 31, 2024 and 2023, our accumulated postretirement benefit obligations were in excess of plan assets for all postretirement 
plans.
We used the following assumptions to determine our pension and postretirement benefit obligations at December 31:
Pension
Postretirement
2024
2023
2024
2023
Discount rate
 5.7 %
 5.3 %
 5.7 %
 5.2 %
Rate of compensation increase - long-term
 4.0 
 4.0 
 — 
 — 
Health care cost trend rate assumed for next year
 — 
 — 
 6.3 
 6.5 
Ultimate trend rate
 — 
 — 
 5.0 
 5.0 
Year that the rate reaches the ultimate trend rate
— 
— 
2031
2031
85

▪
Components of Net Periodic Benefit Cost (Income): Net periodic benefit cost (income) consisted of the following for the
years ended December 31:
Pension
Postretirement
(in millions)
2024
2023
2022
2024
2023
2022
Service cost
$ 
41 $ 
39 $ 
64 
$ 
15 $ 
15 $ 
23 
Interest cost
321 
333 
206 
62 
65 
41 
Expected return on plan assets
(465)
(485)
(493)
(6)
(8)
(13)
Amortization:
Net loss (gain)
28 
4 
96 
(6)
(2)
18 
Prior service cost (credit)
5 
6 
6 
(41)
(40)
(45) 
Net periodic benefit cost (income)
$ 
(70) $
(103) $
(121)
$
24 $ 
30 $ 
24 
The following assumptions were used to determine our net periodic benefit cost (income) for the years ended December 31:
Pension
Postretirement
2024
2023
2022
2024
2023
2022
Discount rates:
Service cost
 5.4 %
 5.7 %
 3.2 %
 5.3 %
 5.7 %
 3.2 %
Interest cost 
 5.2 
 5.5 
 2.5 
 5.2 
 5.5 
 2.5 
Expected rate of return on plan assets
 6.1 
 6.1 
 6.1 
 7.4 
 7.4 
 7.7 
Rate of compensation increase - long-term
 4.0 
 4.0 
 4.0 
 — 
 — 
 — 
Health care cost trend rate
 — 
 — 
 — 
 6.5 
 6.5 
 6.5 
▪
Defined Contribution Plans: We sponsor tax-qualified defined contribution plans covering certain salaried and hourly (non-
union and union) employees.  Contributions and costs are determined generally as a percentage of earnings, as defined by our plans.
Amounts charged to expense for these defined contribution plans totaled $112 million, $109 million and $91 million in 2024, 2023 and
2022, respectively.
▪
Pension and Postretirement Plan Assets: In managing our pension assets, we implement a liability-driven investment
framework that aligns plan assets with liabilities.  The current equity/fixed income target allocation of 20%/80% is designed to balance
pension liability hedging and asset growth in order to maintain our plan’s funded status and cover incremental service accruals and
interest cost.  Liability hedging is achieved through investing in rate-sensitive fixed income securities, primarily corporate bonds and
U.S. Treasuries, while growth assets are comprised of publicly traded equity securities.
Our investment strategy for our postretirement plan assets is intended to maximize our total asset return based on the expectation that 
equity securities will outperform debt securities over the long term and reflects the maturity structure of our benefit obligation.  The 
equity/fixed income target allocation for postretirement plan assets is 55%/45%.
We believe that we implement these investment strategies in a prudent and risk-controlled manner, consistent with the fiduciary 
requirements of the Employee Retirement Income Security Act of 1974, by investing retirement plan assets in a well-diversified mix of 
equities, fixed income and other securities.
The actual composition of our plan assets at December 31, 2024 was broadly characterized with the following allocation:
Pension
Postretirement
Equity securities
 21 %
 57 %
Corporate bonds
 63 %
 30 %
U.S. Treasury and foreign government securities and all other investments 
 16 % (1)
 13 %
(1)  Amount includes U.S. Treasury and foreign government securities (8%) and all other investments (8%).
Our pension and postretirement plan asset performance is monitored on an ongoing basis to adjust the mix as necessary to achieve our 
target allocations.
Substantially all pension and all postretirement assets can be used to make monthly benefit payments.
We implement our investment strategy for our pension and postretirement plan assets by investing in long-duration fixed income 
securities that primarily include U.S. corporate bonds of companies from diversified industries and U.S. Treasury securities that mirror 
our pension obligation benchmark, as well as U.S. and international equity index strategies that are intended to mirror broad market 
86

indices, including, the Standard & Poor’s 500 Index and Morgan Stanley Capital International (“MSCI”) Europe, Australasia, and the 
Far East (“EAFE”) Index.  Our pension and postretirement plans also invest in actively managed international equity securities of mid- 
and small-cap companies located in developed and emerging markets.  For pension plan assets, our allocation to below investment grade 
securities represented approximately 8% of the fixed income holdings or approximately 7% of our total plan assets at December 31, 
2024.  Our allocation to emerging markets represented approximately 2% of total plan assets at December 31, 2024.  For postretirement 
plan assets, our allocation to below investment grade securities represented approximately 8% of the fixed income holdings or 
approximately 3% of our total plan assets at December 31, 2024.  Our allocation to emerging markets represented approximately 2% of 
our total plan assets at December 31, 2024.
Our risk management practices for our pension and postretirement plans include (i) ongoing monitoring of asset allocation, investment 
performance and investment managers’ compliance with their investment guidelines, (ii) periodic rebalancing between equity and debt 
asset classes and (iii) annual actuarial re-measurement of plan liabilities.
Our expected rate of return on pension and postretirement plan assets is determined by our plan assets’ historical long-term investment 
performance, current asset allocation and estimates of future long-term returns by asset class.  The forward-looking estimates are 
consistent with the long-term historical averages exhibited by returns on equity and fixed income securities.  For determining our 
pension and postretirement net periodic benefit cost (income), our 2025 expected rate of return assumptions are 6.1% and 7.4%, 
respectively.
The fair values of our pension plan assets by asset category were as follows at December 31:
2024
2023
(in millions)
Level 1
Level 2
Total
Level 1
Level 2
Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies
$ 
— $ 
508 $ 
508 $ 
— $ 1,114 $ 1,114 
U.S. municipal bonds
— 
69 
69 
— 
81 
81 
Foreign government and agencies
— 
54 
54 
— 
33 
33 
Corporate debt instruments:
Above investment grade
— 
3,572 
3,572 
— 
3,160 
3,160 
Below investment grade and no rating
— 
582 
582 
— 
716 
716 
Common stock:
International equities
398 
— 
398 
360 
— 
360 
U.S. equities
361 
— 
361 
323 
— 
323 
Asset backed securities
— 
185 
185 
— 
279 
279 
Other, net
(15)
99
84 
47 
154 
201 
$ 
744 $ 5,069 $ 5,813 $ 
730 $ 5,537 $ 6,267 
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds
U.S. large cap
$ 
445 
$ 
388 
U.S. small cap 
100 
90 
International developed markets
53 
55 
Total investments measured at NAV
$ 
598 
$ 
533 
Other
134 
(25) 
Fair value of plan assets, net
$ 6,545 
$ 6,775 
Level 3 holdings and transactions were immaterial to total plan assets at December 31, 2024 and 2023.
87

The fair values of our postretirement plan assets were as follows at December 31:
2024
2023
(in millions)
Level 1
Level 2
Total
Level 1
Level 2
Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies
$ 
— $ 
1 $ 
1 $ 
— $ 
4 $ 
4 
Foreign government and agencies
— 
2 
2 
— 
2 
2 
Corporate debt instruments:
Above investment grade
— 
24 
24 
— 
31 
31 
Below investment grade and no rating
— 
2 
2 
— 
4 
4 
Other, net
— 
8 
8 
1 
3 
4 
$ 
— $ 
37 $ 
37 $ 
1 $ 
44 $ 
45 
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds:
U.S. large cap
$ 
35 
$ 
44 
International developed markets
12 
11 
Total investments measured at NAV
$ 
47 
$ 
55 
Other
— 
2 
Fair value of plan assets, net
$ 
84 
$ 
102 
There were no Level 3 postretirement plan holdings or transactions during 2024 and 2023.
For a description of the fair value hierarchy and the three levels of inputs used to measure fair value, see Note 2. Summary of Significant 
Accounting Policies.
Following is a description of the valuation methodologies used for investments measured at fair value.
▪
U.S. and Foreign Government Securities: U.S. and foreign government securities consist of investments in Treasury Nominal Bonds
and Inflation Protected Securities, agency bonds and municipal securities.  Government securities are valued at a price that is based
on a compilation of primarily observable market information, such as broker quotes.  Matrix pricing, yield curves and indices are
used when broker quotes are not available.
▪
Corporate Debt Instruments: Corporate debt instruments are valued at a price that is based on a compilation of primarily observable
market information, such as broker quotes.  Matrix pricing, yield curves and indices are used when broker quotes are not available.
▪
Common Stock: Common stocks are valued based on the price of the security as listed on an open active exchange on last trade date.
▪
Asset Backed Securities: Asset backed securities are fixed income securities such as mortgage backed securities and auto loans that
are collateralized by pools of underlying assets that are unable to be sold individually.  They are valued at a price that is based on a
compilation of primarily observable market information or a broker quote in a non-active over-the-counter market.
▪
Collective Investment Funds: Collective investment funds consist of funds that are intended to mirror indices such as Standard &
Poor’s 500 Index and MSCI EAFE Index.  They are valued on the basis of the relative interest of each participating investor in the
fair value of the underlying assets of each of the respective collective investment funds, which are valued based on the net asset
value (“NAV”), and are provided by the investment account manager as a practical expedient to estimate fair value.  These
investments are not classified by level but are disclosed to permit reconciliation to the fair value of plan assets.
Cash Flows: We make contributions to our pension plans to the extent that the contributions are tax deductible and pay benefits that 
relate to plans for salaried employees that cannot be funded under IRS regulations.  Currently, we anticipate making employer 
contributions to our pension and postretirement plans of up to approximately $30 million for each in 2025.  However, the foregoing  
estimates of 2025 contributions to our pension and postretirement plans are subject to change as a result of changes in tax and other 
benefit laws, changes in interest rates, as well as asset performance significantly above or below the assumed long-term rate of return for 
each respective plan.
88

Estimated future benefit payments at December 31, 2024 were as follows:
(in millions)
Pension
Postretirement
2025
$ 
488 
$ 
84 
2026
480 
83 
2027
481 
82 
2028
482 
82 
2029
483 
83 
2030-2034
2,358 
423 
Comprehensive Earnings/Losses
We recorded the following amounts in accumulated other comprehensive losses at December 31, 2024:
(in millions)
Pension
Post-
retirement
Post-
employment
Total
Net (loss) gain
$ 
(2,213) $ 
172 $ 
(45) $
(2,086) 
Prior service (cost) credit
(13)
216
(5)
198
Deferred income taxes
578 
(95)
13
496 
Amounts recorded in accumulated other comprehensive losses
$ 
(1,648) $ 
293 $ 
(37) $
(1,392) 
We recorded the following amounts in accumulated other comprehensive losses at December 31, 2023:
(in millions)
Pension
Post-
retirement
Post-
employment
Total
Net (loss) gain
$ 
(2,236) $ 
19 $ 
(39) $
(2,256) 
Prior service (cost) credit
(18)
256
(5)
233
Deferred income taxes
585 
(67)
12
530 
Amounts recorded in accumulated other comprehensive losses
$ 
(1,669) $ 
208 $ 
(32) $
(1,493) 
The movements in other comprehensive earnings (losses) for the year ended December 31, 2024 were as follows:
(in millions)
Pension
Post-
retirement
Post-
employment
Total
Amounts reclassified to net earnings as components of net periodic 
benefit cost (income):
Amortization:
Net loss (gain)
$ 
28 $ 
(6) $
7 $ 
29 
Prior service cost (credit)
5 
(41)
—
(36) 
Deferred income taxes
(8)
12
(2)
2
$ 
25 $ 
(35) $
5 $ 
(5) 
Other movements during the year:
Net (loss) gain 
$ 
(5) $
159 $ 
(13) $
141 
Prior service (cost) credit
— 
1 
— 
1 
Deferred income taxes
1 
(40)
3
(36) 
$ 
(4) $
120 $ 
(10) $
106 
Total movements in other comprehensive earnings (losses)
$ 
21 $ 
85 $ 
(5) $
101 
89

The movements in other comprehensive earnings (losses) for the year ended December 31, 2023 were as follows:
(in millions)
Pension
Post-
retirement
Post-
employment
Total
Amounts reclassified to net earnings as components of net periodic 
benefit cost (income):
Amortization:
Net loss (gain)
$ 
4 $ 
(2) $
6 $ 
8 
Prior service cost (credit)
6 
(40)
—
(34) 
Deferred income taxes
(2)
11
(1)
8
$ 
8 $ 
(31) $
5 $ 
(18) 
Other movements during the year:
Net (loss) gain
$ 
(60) $
20 $ 
(11) $
(51) 
Prior service (cost) credit
— 
3 
— 
3 
Deferred income taxes
16 
(10)
3
9 
$ 
(44) $
13 $ 
(8) $
(39) 
Total movements in other comprehensive earnings (losses)
$ 
(36) $
(18) $
(3) $
(57) 
The movements in other comprehensive earnings (losses) for the year ended December 31, 2022 were as follows:
(in millions)
Pension
Post-
retirement
Post-
employment
Total
Amounts reclassified to net earnings as components of net periodic 
benefit cost (income):
Amortization:
Net loss (gain)
$ 
96 $ 
18 $ 
13 $ 
127 
Prior service cost (credit)
6 
(45)
—
(39) 
Deferred income taxes
(26)
7
(3)
(22)
$ 
76 $ 
(20) $
10 $ 
66 
Other movements during the year:
Net (loss) gain
$ 
(183) $
345 $ 
(15) $
147 
Prior service (cost) credit
— 
(2)
—
(2) 
Deferred income taxes
48 
(87)
4
(35) 
$ 
(135) $
256 $ 
(11) $
110 
Total movements in other comprehensive earnings (losses)
$ 
(59) $
236 $ 
(1) $
176 
Note 19.  Additional Information
For the Years Ended December 31,
(in millions)
2024
2023
2022
Research and development expense
$ 
208 $ 
220 $ 
162 
Interest expense
$ 
1,124 $ 
1,149 $ 
1,128 
Interest income
(87)
(160)
(70) 
Interest and other debt expense, net
$ 
1,037 $ 
989 $ 
1,058 
90

The activity in the allowance for discounts and allowance for returned goods was as follows:
For the Years Ended December 31,
(in millions)
2024
2023
2022
Discounts
Returned 
Goods
Discounts
Returned 
Goods
Discounts
Returned 
Goods
Balance at beginning of year
$ 
— $ 
39 
$ 
— $ 
41 
$ 
— $ 
50 
Charged to costs and expenses
603 
142 
597 
118 
607 
97 
Deductions (1)
(600)
(130)
(597)
(120)
(607)
(106)
Balance at end of year
$ 
3 $ 
51 
$ 
— $ 
39 
$ 
— $ 
41 
(1) Represents the recording of discounts and returns for which allowances were created.
Note 20.  Contingencies
Legal proceedings covering a wide range of matters are pending or threatened in various United States and foreign jurisdictions against 
Altria and certain of our subsidiaries, including PM USA and NJOY, as well as our indemnitees.  Various types of claims may be raised 
in these proceedings, including product liability, unfair trade practices, antitrust, income tax liability, contraband shipments, patent 
infringement, employment matters, environmental matters, claims alleging violation of the Racketeer Influenced and Corrupt 
Organizations Act (“RICO”), claims for contribution and claims of competitors, shareholders or distributors.  Legislative action, such as 
changes to tort law, also may expand the types of claims and remedies available to plaintiffs.
Litigation is subject to uncertainty, and it is possible that there could be adverse developments in pending or future cases.  An 
unfavorable outcome or settlement of pending tobacco-related or other litigation could encourage the commencement of additional 
litigation.  Damages claimed in some tobacco-related and other litigation are or can be significant and, in certain cases, have ranged in 
the billions of dollars.  The variability in pleadings in multiple jurisdictions, together with the actual experience of management in 
litigating claims, demonstrates that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome.  
In certain cases, plaintiffs claim that defendants’ liability is joint and several.  In such cases, we may face the risk that one or more co-
defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated 
share of a judgment.  As a result, under certain circumstances, we may have to pay more than our proportionate share of any bonding- or 
judgment-related amounts.  Furthermore, in those cases where plaintiffs are successful, we also may be required to pay interest and 
attorneys’ fees.
Although PM USA historically has been able to obtain required bonds or relief from bonding requirements in order to prevent plaintiffs 
from seeking to collect judgments while adverse verdicts have been appealed, there remains a risk that such relief may not be obtainable 
in all cases.  This risk has been substantially reduced given that 47 states and Puerto Rico limit the dollar amount of bonds or require no 
bond at all.  However, tobacco litigation plaintiffs have challenged the constitutionality of Florida’s bond cap statute in several cases, 
and plaintiffs may challenge state bond cap statutes in other jurisdictions as well.  Such challenges may include the applicability of state 
bond caps in federal court.  States, including Florida, also may seek to repeal or alter bond cap statutes through legislation.  Although we 
cannot predict the outcome of such challenges, it is possible that our consolidated results of operations, cash flows or financial position 
could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome of one or more such challenges.
We record provisions in our consolidated financial statements for pending litigation when we determine that an unfavorable outcome is 
probable and the amount of the loss can be reasonably estimated.  At the present time, while it is reasonably possible that an unfavorable 
outcome in a case may occur, except to the extent discussed elsewhere in this Note 20. Contingencies: (i) management has concluded 
that it is not probable that a loss has been incurred in any of the pending cases; (ii) management is unable to estimate the possible loss or 
range of loss that could result from an unfavorable outcome in any of the pending cases; and (iii) accordingly, management has not 
provided any amounts in our consolidated financial statements for unfavorable outcomes, if any.  Litigation defense costs are expensed 
as incurred.
We have achieved substantial success in managing litigation.  Nevertheless, litigation is subject to uncertainty and significant challenges 
remain.  It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a 
particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation.  We believe, and have been 
so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid 
bases for appeal of adverse verdicts.  We have defended, and will continue to defend, vigorously against litigation challenges.  However, 
we may enter into settlement discussions in particular cases if we believe it is in our best interests to do so.
91

Judgments Paid and Provisions for Tobacco and Health (Including Engle Progeny Litigation) and Certain Other Litigation 
Items: The changes in our accrued liability for tobacco and health and certain other litigation items, including related interest costs, for 
the periods specified below are as follows:
(in millions)
2024
2023
2022
Accrued liability for tobacco and health and certain other litigation items at beginning of 
period
$ 
346 
$ 
71 
$ 
91 
Pre-tax charges for:
Tobacco and health and certain other litigation (1)
70 
79 
101 
Shareholder derivative lawsuits (2)
— 
98 
27 
JUUL-related settlements (3)
30 
242 
— 
Related interest costs
1 
11 
3 
Payments
(351) 
(155)
(151)
Accrued liability for tobacco and health and certain other litigation items at end of period
$ 
96 
$ 
346 
$ 
71 
(1) Includes judgments, settlements and fee disputes associated with tobacco and health and certain other litigation.
(2) See Federal and State Shareholder Derivative Lawsuits below for a discussion of the settlement of the federal and state shareholder derivative
lawsuits.
(3) Includes the settlement of certain e-vapor product litigation relating to JUUL e-vapor products.  See E-vapor Product Litigation below for a
discussion of these settlements.
The accrued liability for tobacco and health and certain other litigation items, including related interest costs, was included in accrued 
liabilities and other liabilities on our consolidated balance sheets.  Pre-tax charges except for related interest costs were included in 
marketing, administration and research costs in our consolidated statements of earnings.  Pre-tax charges for related interest costs were 
included in interest and other debt expense, net in our consolidated statements of earnings.
After exhausting all appeals in those cases resulting in adverse verdicts associated with tobacco-related litigation, since October 2004, 
PM USA has paid judgments and settlements (including related costs and fees) totaling approximately $1.1 billion and interest totaling 
approximately $242 million as of December 31, 2024.  These amounts include payments for Engle progeny judgments (and related costs 
and fees) totaling approximately $449 million and related interest totaling approximately $61 million.
Security for Judgments: To obtain stays of judgments pending appeal, PM USA has posted various forms of security.  As of December 
31, 2024, PM USA has posted appeal bonds totaling approximately $31 million, which have been collateralized with restricted cash and 
are included in assets on our consolidated balance sheets.
Overview of Tobacco-Related Litigation
Types and Number of U.S. Cases: Claims related to tobacco products generally fall within the following categories: (i) smoking and 
health cases alleging personal injury brought on behalf of individual plaintiffs; (ii) health care cost recovery cases brought by 
governmental (both domestic and foreign) plaintiffs seeking reimbursement for health care expenditures allegedly caused by cigarette 
smoking and/or disgorgement of profits; (iii) e-vapor cases alleging violation of RICO, fraud, failure to warn, design defect, negligence, 
antitrust, patent infringement and unfair trade practices; and (iv) other tobacco-related litigation described below.  Plaintiffs’ theories of 
recovery and the defenses raised in tobacco-related litigation are discussed below.
92

The table below lists the number of certain tobacco-related cases pending in the United States against us as of December 31:
2024
2023
2022
Individual Smoking and Health Cases (1)
180
172
162
Health Care Cost Recovery Actions (2)
1
1
1
E-vapor Cases (3)
24
5,177
5,283
Other Tobacco-Related Cases (4)
3
3
3
(1) Includes as of December 31, 2024, 25 cases filed in Illinois, 17 cases filed in New Mexico, 75 cases filed in Massachusetts, 11 cases filed in Oregon,
three cases filed in Hawaii and 22 non-Engle cases filed in Florida.  Does not include individual smoking and health cases brought by or on behalf of
plaintiffs in Florida state and federal courts following the decertification of the Engle class (these Engle progeny cases are discussed below in
Smoking and Health Litigation - Engle Progeny Cases).  Also does not include 99 Broin cases pending as of December 31, 2024.  For further
discussion of the Broin cases, see Other Smoking and Health Class Actions below.
(2) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below.
(3) In May 2023, we reached agreement on terms to resolve the majority of the Multidistrict Litigation lawsuits, and, in March 2024, the court granted
final approval of the settlement.  Pending final dismissal of these cases, as of December 31, 2024, the remaining cases include 20 individual cases
that opted out of the settlement, three class action lawsuits pending in Canada and one individual state court case relating to the Multidistrict
Litigation.  For further discussion of the Multidistrict Litigation settlement, see E-vapor Product Litigation below.
(4) Includes as of December 31, 2024, one inactive smoking and health case alleging personal injury and purporting to be brought on behalf of a class of
individual plaintiffs and two inactive class action lawsuits alleging that use of the terms “Lights” and “Ultra Lights” constitute deceptive and unfair
trade practices, common law or statutory fraud, unjust enrichment, breach of warranty or violations of RICO.
International Tobacco-Related Cases: As of January 27, 2025, (i) Altria is named as a defendant in three e-vapor class action lawsuits 
in Canada; (ii) PM USA is a named defendant in 10 health care cost recovery actions in Canada, eight of which also name Altria as a 
defendant; and (iii) PM USA and Altria are named as defendants in seven smoking and health class actions filed in various Canadian 
provinces.  See Guarantees and Other Similar Matters below for a discussion of the Distribution Agreement (defined below) between 
Altria and PMI that provides for indemnities for certain liabilities concerning tobacco products.
Tobacco-Related Cases Set for Trial: As of January 27, 2025, three Engle progeny case, two individual smoking and health case and 
no e-vapor cases are set for trial through March 31, 2025.  Trial dates are subject to change.
Trial Results: Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 84 
tobacco-related cases in which PM USA was a defendant.  Verdicts in favor of PM USA and other defendants were returned in 53 of the 
84 cases.  Of the 31 non-Engle progeny cases in which verdicts were returned in favor of plaintiffs, 27 have reached final resolution.
See Smoking and Health Litigation - Engle Progeny Trial Results below for a discussion of verdicts in state and federal Engle progeny 
cases involving PM USA as of January 27, 2025.
Smoking and Health Litigation
Overview: Plaintiffs’ allegations of liability in smoking and health cases are based on various theories of recovery, including 
negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, nuisance, breach of express and 
implied warranties, breach of special duty, conspiracy, concert of action, violations of unfair trade practice laws and consumer protection 
statutes and claims under the federal and state anti-racketeering statutes.  Plaintiffs in the smoking and health cases seek various forms of 
relief, including compensatory and punitive damages, treble/multiple damages and other statutory damages and penalties, creation of 
medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and equitable relief.  Defenses raised in these 
cases include lack of proximate cause, assumption of the risk, comparative fault and/or contributory negligence, statutes of limitations 
and preemption by the Federal Cigarette Labeling and Advertising Act.
Non-Engle Progeny Litigation: Summarized below are the non-Engle progeny smoking and health cases pending in which verdicts 
were returned in favor of plaintiff and against PM USA and remain outstanding or cases concluded within the last 12 months where PM 
USA paid a final judgment.  Charts listing certain verdicts for plaintiffs in the Engle progeny cases can be found in Smoking and Health 
Litigation - Engle Progeny Trial Results below.
Taylor: In April 2024, a jury in an Oregon state court returned a verdict in favor of plaintiff and against PM USA, awarding less than $1 
million in compensatory damages.  The jury found that plaintiff was not entitled to punitive damages.  Plaintiff has appealed the 
judgment, and the appeal remains pending.  PM USA filed post-trial motions, which were denied, and PM USA has noticed an appeal 
from the final judgment and the trial court’s denial of the post-trial motions.  The parties filed a motion to stay execution pending appeal, 
and the court has stayed execution of the final judgment pending conclusion of appellate activity.
Ricapor-Hall: In August 2023, a jury in a Hawaii state court returned a verdict in favor of plaintiff and against PM USA, awarding $6 
million in compensatory damages and $8 million in punitive damages.  In October 2023, the court entered judgment against PM USA for 
$11 million, having reduced the compensatory damages award to $3 million based on the jury’s finding on comparative fault and a set-
off against plaintiff’s settlements with other defendants.  We filed post-trial motions challenging the verdict, which were denied in 
93

March 2024.  In April 2024, we filed a notice of appeal and a motion to stay execution pending appeal, and the court has stayed 
execution of the final judgment pending resolution of PM USA’s appeal rights.  PM USA’s appeal remains pending, and plaintiff has 
noticed a cross-appeal.
Woodley: In February 2023, a jury in a Massachusetts state court returned a verdict in favor of plaintiff and against PM USA, awarding 
$5 million in compensatory damages.  There was no claim for punitive damages.  Following the denial of PM USA’s post-trial motions, 
PM USA appealed the judgment to the Appeals Court of Massachusetts, which affirmed the judgment in January 2025.
Fontaine: In September 2022, a jury in a Massachusetts state court returned a verdict in favor of plaintiff and against PM USA, awarding 
approximately $8 million in compensatory damages and $1 billion in punitive damages.  In September 2023, the court denied PM USA’s 
motion for a new trial and partially granted PM USA’s motion for remittitur, reducing the punitive damages award to $56 million.  In 
December 2023, the court entered a final judgment awarding plaintiff $8 million in compensatory damages, $56 million in punitive 
damages and prejudgment interest.  PM USA has noticed an appeal to the Appeals Court of Massachusetts, and the appeal remains 
pending.
Federal Government’s Lawsuit: See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below for a discussion of 
the verdict and post-trial developments in the United States of America health care cost recovery case.
Engle Progeny Cases: Engle progeny cases are individual smoking and health lawsuits filed by Florida resident plaintiffs against one or 
more cigarette manufacturer defendants.  The lawsuits arose following the Florida Supreme Court’s decertification of the class in Engle, 
et. al. v. R.J. Reynolds Tobacco Co., et. al., a smoking and health class action lawsuit filed in Florida state court against multiple 
defendants, including PM USA, in which the jury returned a verdict in favor of the plaintiff class and the trial court assessed punitive 
damages against the defendants.  In July 2006, the Florida Supreme Court mandated that the trial court’s punitive damages award be 
vacated, that the class approved by the trial court be decertified and that members of the decertified class could file individual actions 
against defendants within one year of issuance of the mandate.  Plaintiffs in Engle progeny lawsuits are entitled to rely on certain 
liability findings from the class action lawsuit, substantially reducing each plaintiff’s burden of proof.  These liability findings stipulate: 
(i) that smoking causes various diseases; (ii) that nicotine in cigarettes is addictive; (iii) that defendants’ cigarettes were defective and
unreasonably dangerous; (iv) that defendants concealed or omitted material information not otherwise known or available knowing that
the material was false or misleading or failed to disclose a material fact concerning the health effects or addictive nature of smoking; (v)
that defendants agreed to conceal or omit information regarding the health effects of cigarettes or their addictive nature with the intention
that smokers would rely on the information to their detriment; (vi) that defendants sold or supplied cigarettes that were defective; and
(vii) that defendants were negligent.
Pending Engle Progeny Cases: The deadline for filing Engle progeny cases expired in January 2008, at which point a total of 
approximately 9,300 federal and state claims were pending.  As of January 27, 2025, approximately 105 state court cases were pending 
against PM USA or Altria asserting individual claims by or on behalf of approximately 132 state court plaintiffs.  Because of a number 
of factors, including docketing delays, duplicated filings and overlapping dismissal orders, these numbers are estimates.  Each federal 
Engle progeny case has been resolved.
Engle Progeny Trial Results: As of January 27, 2025, 147 federal and state Engle progeny cases involving PM USA have resulted in 
verdicts.  Eighty-eight were returned in favor of plaintiffs, five of which have been reversed post-trial or on appeal and remain pending. 
Fifty-nine verdicts were returned in favor of PM USA, two of which have been reversed post-trial or on appeal and remain pending.  In 
addition, there have been a number of mistrials, only some of which have resulted in new trials as of January 27, 2025.
Post-trial activity in a case can result in a final resolution that differs from the initial verdict.  In many cases, parties have appealed either 
compensatory or punitive damages awards or both.  Courts also have increased and decreased the amounts of compensatory damages 
juries have awarded, decreased the amounts of punitive damages juries have awarded, declared mistrials and vacated judgments, in 
whole or in part, with respect to compensatory and punitive damages awards.  Initial verdicts have been reversed in whole or in part on 
appeal or following retrial.  Juries have returned verdicts in favor of or against PM USA awarding no damages.  In cases where juries 
returned verdicts against PM USA awarding no damages, some trial courts have decided to award plaintiff damages notwithstanding the 
verdict.  Cases also have been dismissed with or without prejudice before or after a verdict.
The charts below list the verdicts in and post-trial status of certain Engle progeny cases in which verdicts were returned in favor of 
plaintiffs.  The first chart lists cases that are pending as of January 27, 2025 where PM USA has determined an unfavorable outcome is 
not probable and the amount of loss cannot be reasonably estimated, and the second chart lists cases that have concluded in the past 12 
months.  In this Note 20. Contingencies, references to “R.J. Reynolds” are to R.J. Reynolds Tobacco Company.  Unless otherwise noted 
for a particular case, the jury’s award for compensatory damages will not be reduced by any finding of plaintiff’s comparative fault.  
Further, the damages noted reflect adjustments based on post-trial or appellate rulings.
94

Currently Pending Engle Cases with Verdicts against PM USA 
(rounded to nearest $ million)
Garcia
June 2024
PM USA
Miami-Dade
$2 million
$10 million
Appeals to the Third District Court of Appeal 
pending.
Chacon
October 2023
PM USA
Miami-Dade
<$1 million
<$1 million
Appeals to the Third District Court of Appeal 
pending.
Lipp
September 2021
PM USA
Miami-Dade
$15 million
$28 million
Third District Court of Appeal reversed and 
remanded for a new trial.  Plaintiff’s motion for 
rehearing pending.
McCall
March 2019
PM USA
Broward
<$1 million 
(<$1 million 
PM USA)
<$1 million
Appeal to the Fourth District Court of Appeal 
pending.
Kaplan 
(McLaughlin)
July 2018
PM USA and 
R.J. Reynolds
Broward
$2 million
$0
Appeal to the Fourth District Court of Appeal 
pending.
Cooper 
(Blackwood)
September 2015
PM USA
Broward
<$1 million
$0
Retrial of punitive damages claim pending.
Plaintiff
Verdict Date
Defendant(s)
Court
Compensatory 
Damages(1)
Punitive 
Damages 
(PM USA)
Post-Trial Status
(1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies.
Engle Cases Concluded within Past 12 Months 
(rounded to nearest $ million)
Plaintiff
Verdict Date
Defendant(s)
Court
Payment Amount for Damages (if any)
Chadwell
September 2018
PM USA
Miami-Dade
$2 million
Schertzer
April 2022
PM USA and R.J. Reynolds
Miami-Dade
$4 million
Hoffman
January 2023
PM USA
Miami-Dade
$3 million
Levine
September 2022
PM USA and R.J. Reynolds
Miami-Dade
$1 million
Duignan
February 2020
PM USA and R.J. Reynolds
Pinellas
$4 million
Ferraiuolo
November 2023
PM USA and R.J. Reynolds
Duval
<$1 million
Other Smoking and Health Class Actions: Since the dismissal in May 1996 of a purported nationwide class action brought on behalf 
of allegedly addicted smokers, plaintiffs have filed numerous putative smoking and health class action suits in various state and federal 
courts.  In general, these cases have purported to be brought on behalf of residents of a particular state or states (although a few cases 
have purported to be nationwide in scope) and have raised addiction claims and, in many cases, claims of physical injury as well.
Class certification has been denied or reversed by courts in 61 smoking and health class actions involving PM USA in Arkansas (1), 
California (1), Delaware (1), the District of Columbia (2), Florida (2), Illinois (3), Iowa (1), Kansas (1), Louisiana (1), Maryland (1), 
Michigan (1), Minnesota (1), Nevada (29), New Jersey (6), New York (2), Ohio (1), Oklahoma (1), Oregon (1), Pennsylvania (1), Puerto 
Rico (1), South Carolina (1), Texas (1) and Wisconsin (1).  See Certain Other Tobacco-Related Litigation below for a discussion of 
“Lights” and “Ultra Lights” class action cases and medical monitoring class action cases pending against PM USA.
As of January 27, 2025, PM USA and Altria are named as defendants, along with other cigarette manufacturers, in seven class actions 
filed in the Canadian provinces of Alberta, Manitoba, Nova Scotia, Saskatchewan, British Columbia and Ontario.  In Saskatchewan, 
British Columbia (two separate cases) and Ontario, plaintiffs seek class certification on behalf of individuals who suffer or have suffered 
from various diseases, including chronic obstructive pulmonary disease, emphysema, heart disease or cancer, after smoking defendants’ 
cigarettes.  In the actions filed in Alberta, Manitoba and Nova Scotia, plaintiffs seek certification of classes of all individuals who 
smoked defendants’ cigarettes.  In March 2019, all of these class actions were stayed as a result of three Canadian tobacco manufacturers 
(none of which is related to us) seeking protection under Canada’s Companies’ Creditors Arrangement Act (which is similar to Chapter 
11 bankruptcy in the United States).  The companies entered into these proceedings following a Canadian appellate court upholding two 
smoking and health class action verdicts against those companies totaling approximately CAD $13 billion.  See Guarantees and Other 
Similar Matters below for a discussion of the Distribution Agreement between Altria and PMI, which provides for indemnities for 
certain liabilities concerning tobacco products.
As of January 27, 2025, PM USA is named as a defendant in 24 cases brought by flight attendants against United States cigarette 
manufacturers seeking compensatory damages for personal injuries allegedly caused by exposure to environmental tobacco smoke 
(“ETS”).  The flight attendants allege that they are members of an ETS smoking and health class action in Florida that was settled in 
1997 (Broin).  The terms of the court-approved settlement in that case allowed class members to file individual lawsuits seeking 
compensatory damages but prohibited them from seeking punitive damages.  Class members were prohibited from filing individual 
lawsuits after 2000 under the court-approved settlement.  In July 2024, we reached agreement on terms to resolve approximately 627 
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individual Broin lawsuits.  Accordingly, in the second quarter of 2024, we recorded a pre-tax provision of $4 million related to the 
settlement of these cases, which we paid in the third quarter of 2024.
Health Care Cost Recovery Litigation
Overview: In the health care cost recovery litigation, governmental entities seek reimbursement of health care cost expenditures 
allegedly caused by tobacco products and, in some cases, of future expenditures and damages.  Relief sought by some but not all 
plaintiffs includes punitive damages, multiple damages and other statutory damages and penalties, injunctions prohibiting alleged 
marketing and sales to minors, disclosure of research, disgorgement of profits, funding of anti-smoking programs, additional disclosure 
of nicotine yields, and payment of attorney and expert witness fees.
Although there have been some decisions to the contrary, most judicial decisions in the United States have dismissed all or most health 
care cost recovery claims against cigarette manufacturers.  Nine federal circuit courts of appeals and eight state appellate courts, relying 
primarily on grounds that plaintiffs’ claims were too remote, have ordered or affirmed dismissals of health care cost recovery actions.  
The U.S. Supreme Court has refused to consider plaintiffs’ appeals from the cases decided by five federal circuit courts of appeal.
In addition to the cases brought in the United States, health care cost recovery actions have been brought against tobacco industry 
participants, including PM USA and Altria, in Canada (10 cases), and other entities have stated that they are considering filing such 
actions.
Since the beginning of 2008, the Canadian Provinces of British Columbia, New Brunswick, Ontario, Newfoundland and Labrador, 
Quebec, Alberta, Manitoba, Saskatchewan, Prince Edward Island and Nova Scotia have brought health care reimbursement claims 
against cigarette manufacturers.  PM USA is named as a defendant in the British Columbia and Quebec cases, while both Altria and PM 
USA are named as defendants in the New Brunswick, Ontario, Newfoundland and Labrador, Alberta, Manitoba, Saskatchewan, Prince 
Edward Island and Nova Scotia cases.  The Nunavut Territory and Northwest Territory have passed legislation permitting similar claims, 
but lawsuits based on this legislation have not been filed.  All of these cases have been stayed pending resolution of proceedings in 
Canada involving three tobacco manufacturers (none of which are affiliated with us) under the Companies’ Creditors Arrangement Act 
discussed above.  See Smoking and Health Litigation - Other Smoking and Health Class Actions above for a discussion of these 
proceedings.  See Guarantees and Other Similar Matters below for a discussion of the Distribution Agreement between Altria and PMI 
that provides for indemnities for certain liabilities concerning tobacco products.
Settlements of Health Care Cost Recovery Litigation: In November 1998, PM USA and certain other tobacco product manufacturers 
entered into the Master Settlement Agreement (the “MSA”) with 46 states, the District of Columbia and certain United States territories 
to settle asserted and unasserted health care cost recovery and other claims.  PM USA and certain other tobacco product manufacturers 
had previously entered into agreements to settle similar claims brought by Mississippi, Florida, Texas and Minnesota (together with the 
MSA, the “State Settlement Agreements”).  The State Settlement Agreements require that the original participating manufacturers or 
“OPMs” (now PM USA, R.J. Reynolds and, with respect to certain brands, ITG Brands, LLC (“ITG”)) make annual payments of 
approximately $10.4 billion, subject to adjustments for several factors, including inflation, market share and industry volume.  The 
OPMs’ obligation to make quarterly payments settling plaintiffs’ attorneys’ fees, subject to an annual cap of $500 million, on a pro rata 
basis based on market share, ended in the fourth quarter of 2024.  For the years ended December 31, 2024, 2023 and 2022, the aggregate 
amount recorded in cost of sales with respect to the State Settlement Agreements was approximately $3.5 billion, $3.7 billion and $3.9 
billion, respectively.  These amounts include PM USA’s estimate of amounts related to NPM Adjustments discussed below.
Non-Participating Manufacturer (“NPM”) Adjustment Disputes: The “NPM Adjustment” is a reduction in MSA payments made by 
the OPMs and those manufacturers that are subsequent signatories to the MSA (collectively, the “participating manufacturers” or 
“PMs”) that applies if the PMs collectively lose at least a specified level of market share to non-participating manufacturers since 1997, 
subject to certain conditions and defenses.  The applicability of this reduction has been subject to certain disputes, some of which have 
been resolved via settlement, as discussed below.
Settlements of NPM Adjustment Disputes.
▪
Multi-State Settlement.  As of January 2022, a total of 36 states and territories had settled NPM Adjustment disputes relating to
varying periods of time.  In March 2022, August 2023 and February 2024, Illinois, Iowa and Idaho, respectively, joined the multi-
state settlement, bringing the total number of states and territories that have joined the multi-state settlement to 39.  In the first
quarter of 2022, PM USA recorded $80 million, $20 million of which related to the 2019 through 2021 “transition years,” as a
reduction in cost of sales as a result of Illinois joining the multi-state settlement.  As a result of Iowa joining the multi-state
settlement, PM USA will receive approximately $19 million for 2005 through 2022, $4 million of which relates to the 2020 through
2022 “transition years.”  Accordingly, PM USA recorded $19 million as a reduction in cost of sales in the third quarter of 2023.  As
a result of Idaho joining the multi-state settlement, PM USA will receive approximately $8 million for 2005 through 2023,
$2 million of which relates to the 2021 through 2023 “transition years.”  In connection with this development, PM USA recorded
$8 million as a reduction in cost of sales in the first quarter of 2024.  Pursuant to the multi-state settlement, PM USA has received
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▪
New York Settlement.  In 2015, PM USA entered into a separate NPM Adjustment settlement in which PM USA settled the NPM
Adjustment disputes with New York in perpetuity.  PM USA has received $572 million pursuant to the New York settlement and
expects to receive annual credits applied against the MSA payments due to New York going forward.
▪
Montana Settlement.  In 2020, PM USA entered into a separate NPM Adjustment settlement in which PM USA settled the NPM
Adjustment disputes with Montana through 2030, resulting in a payment from PM USA to Montana for an immaterial amount.
▪
Massachusetts Settlement.  In 2024, PM USA entered into a separate NPM Adjustment settlement in which PM USA settled the
NPM Adjustment disputes with Massachusetts through 2011.  As a result of this settlement, PM USA will receive $28 million.
Accordingly, PM USA recorded $28 million as a reduction in costs of sales in the third quarter of 2024.
Continuing NPM Adjustment Disputes with States That Have Not Settled.
▪
2004 NPM Adjustment.  The PMs and the nine states that had not settled the NPM Adjustment disputes for 2004 participated in a
multi-state arbitration.  Iowa subsequently joined the multistate settlement in August 2023.  The arbitration panel found three of the
remaining eight states that have not settled the NPM Adjustment disputes, Washington, Missouri and New Mexico, were not
diligent in the enforcement of their escrow statutes in 2004, and PM USA received approximately $52 million on account of the
2004 NPM Adjustment as a credit against its April 2023 MSA payment.  PM USA recorded $44 million and $8 million in third
quarter of 2021 and fourth quarter of 2022, respectively.  Washington, Missouri and New Mexico have challenged those
determinations in their respective state courts, and several issues remain to be resolved by the state trial and appellate courts that
may affect the final amount of the 2004 NPM adjustment PM USA and other PMs will receive.
▪
2005-2007 NPM Adjustments.  The PMs and the six states that have not settled the NPM Adjustment disputes are currently
arbitrating NPM Adjustment disputes before a single arbitration panel.  The arbitration encompasses three years, 2005 through
2007, for five of the six states, and one year, 2005, for one state.  As of January 27, 2025, the arbitration panel had issued decisions
for Maryland, Washington and Wisconsin, finding Maryland and Wisconsin diligent for all three years and Washington not diligent
for all three years.  Washington challenged that determination in Washington state court, and the challenge was denied by the trial
court.  Washington has appealed that denial, and the appeal remains pending.  PM USA recorded $14 million as a reduction of costs
of sales and $21 million as interest income in the fourth quarter of 2023 for its estimate of the minimum amount of the 2005 through
2007 NPM Adjustment it will receive.
▪
Subsequent Years.  No assurance can be given as to when proceedings for 2008 and subsequent years will be scheduled or the
precise form those proceedings will take.
Other Disputes under the State Settlement Agreements: The payment obligations of the tobacco product manufacturers that are 
parties to the State Settlement Agreements, as well as the allocations of any NPM Adjustments and related settlements, have been and 
may continue to be affected by R.J. Reynolds’s acquisition of Lorillard Tobacco Company in 2015 and its related sale of certain 
cigarette brands to ITG (the “ITG transferred brands”).  PM USA continues to dispute how the ITG transferred brands are treated in 
allocating the NPM Adjustments and profit adjustments under the State Settlement Agreements.
In December 2019, the State of Mississippi filed a motion in Mississippi state court seeking to enforce the Mississippi State Settlement 
Agreement against PM USA, R.J. Reynolds and ITG concerning the tax rates used in the annual calculation of the net operating profit 
adjustment payments starting in 2018.  The Mississippi state court held a hearing in October 2021 and issued a decision in June 2022 
granting the State’s motion.  PM USA appealed the court’s decision in June 2024.  In September 2024, PM USA and Mississippi settled 
their dispute over the profit adjustment payments.  Pursuant to the settlement, PM USA paid $7 million to Mississippi for 2018 through 
2023.  Accordingly, PM USA recorded $5 million of expense to cost of sales and $2 million of interest expense in the third quarter of 
2024.
In May 2023, PM USA and R.J. Reynolds filed a motion in the U.S. District Court for the Eastern District of Texas seeking to enforce 
the Texas State Settlement Agreement against the State of Texas concerning the same tax rate issue raised by the State of Mississippi.  
The State of Texas filed a cross-motion to enforce, and the court found in favor of the State of Texas.  As of January 27, 2025, the court 
had not made a determination on damages.  PM USA intends to appeal.
In July 2024, the State of Minnesota filed a motion in Minnesota state court seeking to enforce the Minnesota State Settlement 
Agreement against PM USA, R.J. Reynolds and ITG concerning the same state tax issues raised by Mississippi and Texas.  The court 
found in favor of the State of Minnesota.  As of January 27, 2025, the court had not made a determination on damages.  PM USA intends 
to appeal.
Federal Government’s Lawsuit: In 1999, the U.S. government filed a lawsuit in the U.S. District Court for the District of Columbia 
against various cigarette manufacturers, including PM USA, and others, including Altria, asserting claims under three federal statutes.  
The case ultimately proceeded only under the civil provisions of RICO.  In August 2006, the district court held that certain defendants, 
including Altria and PM USA, violated RICO and engaged in certain “sub-schemes” to defraud that the government had alleged.
$1.37 billion since the first group of states entered the NPM Adjustment dispute settlement in 2014 and expects to receive annual 
credits applied against PM USA’s MSA payments through 2041.
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The court did not impose monetary penalties on defendants, but ordered various types of non-monetary relief, including an injunction 
against conveying any express or implied health message or health descriptors on cigarette packaging or in cigarette advertising or 
promotional material, including “lights,” “ultra lights” and “low tar,” which the court found could cause consumers to believe one 
cigarette brand is less hazardous than another brand, and the issuance of “corrective statements” in various media regarding the adverse 
health effects of smoking, the addictiveness of smoking and nicotine, the lack of any significant health benefit from smoking “low tar” 
or “light” cigarettes, defendants’ manipulation of cigarette design to ensure optimum nicotine delivery and the adverse health effects of 
exposure to ETS.
Corrective statements appeared in newspapers and on television for four months and one year, respectively, beginning in the fourth 
quarter of 2017, and the onserts appeared for two weeks at a time for a total of twelve weeks over two years beginning in the fourth 
quarter of 2018.  Corrective statements have appeared on websites since the second quarter of 2018.  In December 2022, the district 
court entered a consent order approving a settlement with respect to corrective statements on point-of-sale signage.  In addition to the 
$28 million of provisions recorded in 2022, we recorded in the first quarter of 2024 provisions of $15 million for estimated costs of 
implementing the corrective statements on point-of-sale signage remedy.
In May 2024, we entered into an agreement with the U.S. government resolving its concerns regarding our assignment of the exclusive 
U.S. commercialization rights to the IQOS System to PMI and whether the court-ordered injunction that applies to cigarettes discussed 
above also applies to HeatSticks, a heated tobacco product used with the IQOS System.  Under the agreement, PM USA agreed to obtain 
district court approval for any future similar transaction and to post additional point-of-sale signage containing the corrective statements 
referenced above.  The cost of implementing the additional point-of-sale signage did not require an increase to the previously recorded 
provisions for point-of-sale signage discussed above.  Pursuant to the settlement, PM USA voluntarily dismissed its appeal of the district 
court’s ruling that HeatSticks are subject to the court’s injunction.
E-vapor Product Litigation
We have been named as defendants in federal class action lawsuits, individual lawsuits and “third party” lawsuits relating to JUUL e-
vapor products, which include school districts, state and local governments and tribal and healthcare organization lawsuits.  We refer to 
this litigation in the United States collectively as the “Multidistrict Litigation.”  The theories of recovery in the Multidistrict Litigation 
include violation of RICO, fraud, failure to warn, design defect, negligence, public nuisance and unfair trade practices.  Plaintiffs seek 
various remedies, including compensatory and punitive damages, restitution or remediation (for plaintiffs that are government entities) 
and an injunction prohibiting product sales.  We also have been named as defendants in a group of cases pending in a consolidated 
California state court proceeding.
In May 2023, we reached agreement on terms to resolve the majority of the Multidistrict Litigation lawsuits as well as the majority of the 
group of cases pending in a consolidated California state court proceeding for $235 million, for which amount we recorded a pre-tax 
provision in the second quarter of 2023.  In March 2024, the court granted final approval of the class action settlement, and we paid the 
settlement amount in the second quarter of 2024.  The settlement applies to all of the Multidistrict Litigation except 20 individual cases 
that opted out of the settlement and 38 “third party” cases brought by Native American tribes.  We separately agreed to settle the cases 
brought by Native America tribes in July 2024, and these cases have been dismissed.  We recorded a pre-tax provision for $20 million in 
the second quarter of 2024 related to the settlement and paid the settlement amount in October 2024.  Neither settlement applies to three 
class action lawsuits pending in Canada, the cases brought by state attorneys general, discussed below, or 17 putative class action 
antitrust lawsuits.  For a description of the antitrust cases not subject to the settlement, see Antitrust Litigation below.
Four of the “third party” lawsuits noted above against us and JUUL were initiated, individually, by the attorneys general of Alaska, 
Hawaii, Minnesota and New Mexico alleging violations of state consumer protection and other similar laws.  In April 2023, January 
2024, February 2024 and April 2024, we agreed to settle the Minnesota, Alaska, Hawaii and New Mexico lawsuits, respectively, for 
immaterial amounts.
In May 2023, Fuma International LLC (“Fuma”) filed a lawsuit against Altria and our affiliates Nu Mark LLC (“Nu Mark”), AGDC, 
ALCS and NJOY in the U.S. District Court for the Eastern District of Virginia asserting claims of patent infringement based on the sale 
of various Nu Mark and NJOY products, including NJOY ACE, in the United States.  In August 2023, we entered into an agreement with 
Fuma resulting in NJOY’s acquisition of the patents that Fuma asserted in its lawsuit.  The parties separately agreed that Fuma would 
dismiss its patent infringement claims in exchange for $10 million, and such claims were dismissed in August 2023.  We recorded a pre-
tax provision for $10 million in the third quarter of 2023 related to the agreement and paid such amount to Fuma in August 2023.
In June 2023, JUUL and VMR Products LLC (“VMR”) filed a lawsuit against Altria and our affiliates AGDC, ALCS, NJOY Holdings 
and NJOY in the U.S. District Court for the District of Arizona asserting claims of patent infringement based on the sale of NJOY ACE 
in the United States.  Plaintiffs seek various remedies, including damages and an injunction on sales of NJOY ACE.  The lawsuit is 
currently stayed.
Also in June 2023, the same plaintiffs filed a related action against the same defendants with the ITC.  There, the plaintiffs also allege 
patent infringement, but the remedies sought include an exclusion order that would prohibit the importation of NJOY ACE into the 
United States.  No damages are recoverable in the proceedings before the ITC.  A hearing before the Administrative Law Judge (“ALJ”) 
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was held in May 2024, and, in August 2024, the ALJ issued an initial determination supporting the plaintiffs’ allegations with respect to 
four patents and recommending an exclusion order.  In September 2024, NJOY petitioned the ITC to review the ALJ’s initial 
determination.  In October 2024, the ITC granted review of the ALJ’s initial determination with respect to aspects of two of the four 
patents.  On January 29, 2025, the ITC issued its final determination finding that NJOY ACE infringes the four patents plaintiff asserted 
and issued an exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE.  The ITC sent its orders to 
the Office of the United States Trade Representative for review.  The Trade Representative has 60 days to review the ITC’s 
determination.  If the Trade Representative disapproves of the ITC’s determination, the orders will not go into effect.  If the Trade 
Representative does not affirmatively reject the ITC’s determination, the determination automatically becomes final and takes effect 
after the 60 days have elapsed (March 31, 2025) or earlier if the Trade Representative notifies the ITC of approval before the 60 days 
elapse.  The final exclusion order and cease-and-desist orders can be appealed to the U.S. Court of Appeals for the Federal Circuit, but 
the final exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE would likely not be stayed 
during the pendency of such an appeal.
In November and December 2023 and February 2024, Altria and our affiliates filed petitions with the U.S. Patent Office Patent Trial and 
Appeal Board (“PTAB”) challenging the validity of the patents underlying JUUL and VMR’s patent infringement claims.  In May, June 
and August 2024, the PTAB denied Altria’s request to institute review as to four patents (including three of the patents that form the 
basis of the ITC’s final determination) and, in June 2024, granted Altria’s request to institute review as to one of the patents that forms 
the basis of the ITC’s final determination.  The PTAB will conduct proceedings and issue its validity decision as to the one JUUL patent 
by June 2025, after which appeals may be filed with the U.S. Court of Appeals for the Federal Circuit.
In August 2023, NJOY filed a complaint against JUUL in the U.S. District Court for the District of Delaware asserting claims of patent 
infringement based on the sale of certain JUUL e-vapor products, including the currently marketed JUUL device and JUULpods, in the 
United States.  The lawsuit is currently stayed.
Also in August 2023, NJOY filed a related action against JUUL with the ITC alleging patent infringement and seeking a ban on the 
importation and sale of the same JUUL products in the United States.  A hearing before the ALJ was held in June 2024.  In December 
2024, the ALJ issued an initial determination concluding that, while the patents NJOY asserted against JUUL are valid, JUUL products 
do not infringe the patents.  The ALJ also determined that, with respect to the asserted patents, NJOY did not satisfy the “domestic 
industry” requirement, which requires the party asserting a patent to show significant and substantial domestic investments, such as 
investments related to engineering, research and development or licensing, designed to exploit the patent.  Subsequently, in December 
2024, NJOY petitioned the ITC to review the ALJ’s initial determination.  The ITC must decide whether to grant or deny review of the 
ALJ’s initial determination in whole or in part by February 3, 2025, subject to the ITC’s right to grant itself an extension.  If granted, the 
ITC’s review of the ALJ’s initial determination will proceed in the same manner as discussed above with respect to VMR and JUUL’s 
action against NJOY.  The ITC must issue its final determination, including with respect to the form of remedy, if any, to be ordered, by 
April 7, 2025, subject to its right to grant itself an extension.
In November 2023, JUUL filed petitions with the PTAB challenging the validity of the patents underlying NJOY’s patent infringement 
claims.  In May 2024, the PTAB agreed to review JUUL’s challenge to both of the NJOY patents asserted against JUUL.  The PTAB 
will conduct proceedings and issue its validity decisions by May 2025, after which appeals may be filed with the U.S. Court of Appeals 
for the Federal Circuit.
We, JUUL and VMR previously engaged with a mediator to attempt to negotiate a resolution of the proceedings pending before the ITC, 
U.S. District Courts and the PTAB.  The parties also have engaged in negotiations without a mediator.  Based on the status of the 
negotiations and the proceedings before the ITC, U.S. District Courts and the PTAB, we have determined that a loss is not probable or 
reasonably estimable as of the date of this filing.
IQOS Litigation
In April 2020, RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Co., which are affiliates of R.J. Reynolds, filed a lawsuit against 
Altria, PM USA, ALCS, PMI and its affiliate, Philip Morris Products S.A., in the U.S. District Court for the Eastern District of Virginia 
asserting claims of patent infringement based on the sale of the IQOS System electronic device and Marlboro HeatSticks in the United 
States.  Plaintiffs seek various remedies, including preliminary and permanent injunctive relief, treble damages and attorneys’ fees.  
Altria and PMI were previously dismissed from the lawsuit, and plaintiffs’ claims against the other defendants have been stayed.
PM USA, ALCS and Philip Morris Products S.A. filed counterclaims against plaintiffs in the Eastern District of Virginia lawsuit 
alleging patent infringement by R.J. Reynolds’ e-vapor products.  In June 2022, PM USA and ALCS reached an agreement with R.J. 
Reynolds resulting in dismissal of their counterclaims.  In addition, ALCS filed a separate lawsuit against R.J. Reynolds in the U.S. 
District Court for the Middle District of North Carolina also alleging patent infringement by R.J. Reynolds’ e-vapor products.  In 
September 2022, a jury awarded ALCS $95 million in damages for past infringement, plus supplemental damages and interest.  In 
January 2023, the court ordered R.J. Reynolds to pay ALCS a 5.25% royalty on future sales of its infringing product resulting in positive 
net income through the expiration of the relevant patents in 2035.  R.J. Reynolds filed a notice of appeal of the judgment to the U.S. 
Court of Appeals for the Federal Circuit, which affirmed the judgment in December 2024.  In July 2024, R.J. Reynolds moved the 
district court to vacate the judgment, including the damages awards and ongoing royalties, on the grounds that R.J. Reynolds obtained a 
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sub-license to the asserted patents from JUUL in December 2023.  In December 2024, the district court denied the motion as to the 
damages award and royalties due through December 2023.  The district court also found that additional proceedings were warranted on 
the part of the motion regarding royalties after R.J. Reynolds obtained an evidentiary hearing.  As gains related to this lawsuit have not 
yet been determined to be realized or realizable in accordance with GAAP, they have not been recognized in our financial statements.
In November 2020, Healthier Choices Management Corp. filed an additional unrelated patent infringement case in the U.S. District 
Court for the Northern District of Georgia against PM USA and Philip Morris Products S.A. seeking damages and equitable relief.  In 
February 2021, defendants filed a motion to dismiss the lawsuit, which the court granted in July 2021.  In December 2021, the U.S. 
District Court denied plaintiff’s motion to amend the complaint and plaintiff appealed this ruling to the U.S. Court of Appeals for the 
Federal Circuit, which reversed the district court’s decision and remanded for further proceedings.  On remand, the U.S. District Court 
stayed the case pending the outcome of plaintiff’s appeal from a ruling by the PTAB, which issued a decision that the claims of the 
asserted patent are invalid.  In November 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the PTAB’s decision that the 
asserted patent is invalid.  In December 2024, Healthier Choices Management Corp. voluntarily dismissed its case.
Antitrust Litigation
In March 2023, we entered into the Stock Transfer Agreement with JUUL pursuant to which, among other things, we transferred to 
JUUL all of our beneficially owned JUUL equity securities.  See Note 8. Investments in Equity Securities for a discussion of our 
disposition of our investment in JUUL.
As of January 27, 2025, 17 putative class action lawsuits have been filed against Altria and JUUL in the U.S. District Court for the 
Northern District of California.  In November 2020, these lawsuits were consolidated into three complaints (one on behalf of direct 
purchasers, one on behalf of indirect purchasers and one on behalf of indirect resellers).  The consolidated lawsuits, as amended, allege 
that Altria and JUUL violated Sections 1, 2 and/or 3 of the Sherman Antitrust Act of 1890 and Section 7 of the Clayton Antitrust Act and 
various state antitrust, consumer protection and unjust enrichment laws by restraining trade and/or substantially lessening competition in 
the U.S. closed-system electronic cigarette market.  Plaintiffs seek various remedies, including treble damages, attorneys’ fees, a 
declaration that the agreements between Altria and JUUL are invalid and rescission of the transaction.  In February 2024, the court 
ordered that certain of the direct-purchaser plaintiffs’ claims against JUUL be sent to arbitration pursuant to an arbitration provision in 
JUUL’s online purchase agreement and dismissed without prejudice the direct-purchaser plaintiffs’ claims for injunctive relief.  The trial 
with respect to the consolidated lawsuits is set to commence in May 2026.
Federal and State Shareholder Derivative Lawsuits
In October 2022, we agreed to settle a series of federal and state derivative cases brought by Altria shareholders on behalf of themselves 
and Altria against Altria and certain of our current and former executives and directors and JUUL, its founders and certain of its current 
and former executives.  The cases related to our former investment in JUUL and asserted claims of breach of fiduciary duty by the Altria 
defendants and aiding and abetting in that alleged breach of fiduciary duty by the remaining defendants.
Under the terms of the settlement, which became effective in May 2023, among other things, we agreed to provide $100 million in 
funding over a five-year period to underage tobacco prevention and cessation programs, which may include positive youth development 
programs, led by independent third-party organizations.  We began providing funding in the third quarter of 2024.  In 2022, we recorded 
pre-tax provisions totaling $27 million for costs associated with the independent monitoring of our funding commitments and attorneys’ 
fees.  In the first quarter of 2023, we recorded pre-tax provisions totaling approximately $100 million related to the settlement, and in 
April 2023, paid $15 million to plaintiffs’ escrow account for attorneys’ fees.
Certain Other Tobacco-Related Litigation
“Lights/Ultra Lights” Cases and Other Smoking and Health Class Actions: Plaintiffs have sought certification of their cases as class 
actions, alleging among other things, that the uses of the terms “Lights” and/or “Ultra Lights” constitute deceptive and unfair trade 
practices, common law or statutory fraud, unjust enrichment or breach of warranty, and have sought injunctive and equitable relief, 
including restitution and, in certain cases, punitive damages.  These class actions have been brought against PM USA and, in certain 
instances, Altria or our other subsidiaries, on behalf of individuals who purchased and consumed various brands of cigarettes.  Defenses 
raised in these cases include lack of misrepresentation, lack of causation, injury and damages, the statute of limitations, non-liability 
under state statutory provisions exempting conduct that complies with federal regulatory directives, and the First Amendment.  Twenty-
one state courts in 23 “Lights” cases have refused to certify class actions, dismissed class action allegations, reversed prior class 
certification decisions or have entered judgment in favor of PM USA.  As of January 27, 2025, two “Lights/Ultra Lights” class actions 
are pending in U.S. state courts.  Neither case is active.
As of January 27, 2025, one smoking and health case alleging personal injury or seeking court-supervised programs or an ongoing 
medical monitoring program on behalf of individuals exposed to ETS and purporting to be brought on behalf of a class of individual 
plaintiffs, is pending in a U.S. state court.  The case is currently inactive.
UST Litigation: UST and/or its tobacco subsidiaries have been named in a number of individual tobacco and health lawsuits over time.  
Plaintiffs’ allegations of liability in these cases have been based on various theories of recovery, such as negligence, strict liability, fraud, 
misrepresentation, design defect, failure to warn, breach of implied warranty, addiction and breach of consumer protection statutes.  
100

Plaintiffs have typically sought various forms of relief, including compensatory and punitive damages, and certain equitable relief, 
including disgorgement.  Defenses raised in these cases have included lack of causation, assumption of the risk, comparative fault and/or 
contributory negligence, and statutes of limitations.  As of January 27, 2025, there is no such case pending against UST and/or its 
tobacco subsidiaries.
Environmental Regulation
Altria and our former subsidiaries are subject to various federal, state and local laws and regulations concerning the discharge of 
materials into the environment, or otherwise related to environmental protection, including, in the United States: the Clean Air Act, the 
Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and 
Liability Act (commonly known as “Superfund”), which can impose joint and several liability on each responsible party.  Altria and our 
former subsidiaries are involved in several cost recovery/contribution cases subjecting them to potential costs of remediation and natural 
resource damages under Superfund or other laws and regulations.  We expect to continue to make capital and other expenditures in 
connection with environmental laws and regulations.
We provide for expenses associated with environmental remediation obligations on an undiscounted basis when such amounts are 
probable and can be reasonably estimated.  Such accruals are adjusted as new information develops or circumstances change.  Other than 
those amounts, it is not possible to reasonably estimate the cost of any environmental remediation and compliance efforts that we may 
undertake in the future.  In the opinion of our management, however, compliance with environmental laws and regulations, including the 
payment of any remediation costs or damages and the making of related expenditures, has not had a material adverse effect on our 
consolidated results of operations, capital expenditures, financial position or cash flows.
Guarantees and Other Similar Matters
In the ordinary course of business, we have agreed to indemnify a limited number of third parties in the event of future litigation.  At 
December 31, 2024, we (i) had $43 million of unused letters of credit obtained in the ordinary course of business and (ii) were 
contingently liable for guarantees related to our own performance, including $19 million for surety bonds.  In addition, from time to 
time, we issue lines of credit to affiliated entities.  These items have not had, and are not expected to have, a significant impact on our 
liquidity.
Under the terms of a distribution agreement between Altria and PMI (“Distribution Agreement”), entered into as a result of our 2008 
spin-off of our former subsidiary PMI, liabilities concerning tobacco products will be allocated based in substantial part on the 
manufacturer.  PMI will indemnify Altria and PM USA for liabilities related to tobacco products manufactured by PMI or contract 
manufactured for PMI by PM USA, and PM USA will indemnify PMI for liabilities related to tobacco products manufactured by PM 
USA, excluding tobacco products contract manufactured for PMI.  We do not have a related liability recorded on our consolidated 
balance sheet at December 31, 2024 as the fair value of this indemnification is insignificant.  PMI has agreed not to seek indemnification 
with respect to the active IQOS System patent litigation discussed above under IQOS Litigation.
As part of the supplier financing program, Altria guarantees the financial obligations of ALCS under the financing program agreement. 
For further discussion of the supplier financing program, see Note 5. Supplier Financing.
PM USA guarantees our obligations under our outstanding debt securities, any borrowings under our $3.0 billion Credit Agreement and 
any amounts outstanding under our commercial paper program.
101

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Altria Group, Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Altria Group, Inc. and its subsidiaries (the “Company”) as of 
December 31, 2024 and 2023, and the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity 
(deficit) and cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively 
referred to as the “consolidated financial statements”).  We also have audited the Company’s internal control over financial reporting as 
of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of 
Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the 
Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period 
ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.  Also in our 
opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, 
based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over 
financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying 
Report of Management On Internal Control Over Financial Reporting.  Our responsibility is to express opinions on the Company’s 
consolidated financial statements and on the Company’s internal control over financial reporting based on our audits.  We are a public 
accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be 
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of 
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audits 
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to 
error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the 
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures 
included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.  Our audits 
also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall 
presentation of the consolidated financial statements.  Our audit of internal control over financial reporting included obtaining an 
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating 
the design and operating effectiveness of internal control based on the assessed risk.  Our audits also included performing such other 
procedures as we considered necessary in the circumstances.  We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of 
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting 
principles.  A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the 
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the 
company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in 
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in 
accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding 
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect 
on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections 
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements 
that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are 
material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.  The 
communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, 
102

and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the 
accounts or disclosures to which they relate.
E-Vapor Product Litigation
As described in Note 20 to the consolidated financial statements, legal proceedings covering a wide range of matters are pending or 
threatened in various U.S. and foreign jurisdictions against the Company as well as its respective indemnitees.  Management records 
provisions in the consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable 
and the amount of the loss can be reasonably estimated.  The Company's accrued liability for tobacco and health and certain other 
litigation items is $96 million as of December 31, 2024.  In establishing this liability, management evaluates tobacco and health and 
certain other litigation items, including e-vapor product litigation.  While it is reasonably possible that an unfavorable outcome in a case 
may occur, except for those cases which, as described in Note 20, have been accrued for, (i) management has concluded that it is not 
probable that a loss has been incurred in any of the pending cases; (ii) management is unable to estimate the possible loss or range of 
loss that could result from an unfavorable outcome in any of the pending cases; and (iii) accordingly, management has not provided any 
amounts in the consolidated financial statements for unfavorable outcomes, if any.
The principal considerations for our determination that performing procedures relating to e-vapor product litigation is a critical audit 
matter are (i) the significant judgment by management when determining if a loss for e-vapor product litigation should be recorded in the 
consolidated financial statements and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and 
evaluating audit evidence related to management’s determination of whether a loss should be recorded.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on 
the consolidated financial statements.  These procedures included testing the effectiveness of controls relating to management’s loss 
determination for tobacco and health litigation matters, including e-vapor product litigation, and controls over the related financial 
statement disclosures.  These procedures also included, among others, (i) evaluating the completeness of the Company’s description of 
e-vapor product litigation matters; (ii) confirming with external and internal legal counsel the likelihood of an unfavorable outcome and
the extent to which a loss is estimable for e-vapor product litigation matters; (iii) evaluating the reasonableness of management’s
determination regarding the likelihood of an unfavorable outcome for e-vapor product litigation matters; and (iv) evaluating the
sufficiency of the Company’s e-vapor product litigation disclosures.
Skoal Trademark Impairment Assessments
As described in Notes 2 and 6 to the consolidated financial statements, the Company’s Skoal trademark had a carrying value of $3.6 
billion as of December 31, 2024.  Management conducts an annual review of indefinite-lived intangible assets for potential impairment, 
and more frequently if an event occurs or circumstances change that would require management to perform an interim review.  In 
connection with the preparation of the financial statements for the interim period ended June 30, 2024, management evaluated the 
accelerated growth of innovative tobacco products, including oral nicotine pouches, and the related increase in competitive activity 
among tobacco categories, which have contributed to reductions in sales volumes for Moist Smokeless Tobacco products, including 
Skoal.  Management concluded that the expected impact from the sales volume declines on the Skoal trademark represented a triggering 
event and performed an interim impairment assessment as of June 30, 2024.  Management determined the estimated fair value of the 
Skoal trademark as of June 30, 2024 was below its carrying value and recorded an impairment of $354 million during the second quarter 
of 2024.  Management’s annual impairment test of indefinite-lived intangible assets as of October 1, 2024 resulted in no impairment 
charge.  Management used an income approach to estimate the fair value of the Skoal trademark.  The income approach reflects the 
discounting of expected future cash flows at a rate of return that incorporates the risk-free rate for use of those funds, the expected rate of 
inflation and the risks associated with realizing expected future cash flows.  In performing the 2024 valuation, management’s cash flow 
analysis for the Skoal trademark included significant judgments and assumptions related to volume, revenue, income, operating margins, 
perpetual growth rate and discount rate.
The principal considerations for our determination that performing procedures relating to the Skoal trademark impairment assessments is 
a critical audit matter are (i) the significant judgment by management when developing the fair value estimates of the Skoal trademark; 
(ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant
assumptions related to revenue, perpetual growth rates, and the discount rates; and (iii) the audit effort involved the use of professionals
with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on 
the consolidated financial statements.  These procedures included testing the effectiveness of controls relating to management’s 
indefinite-lived intangible asset impairment assessments, including controls over the valuation of the Company’s Skoal trademark.  
These procedures also included, among others (i) testing management’s process for developing the fair value estimates of the Skoal 
trademark; (ii) evaluating the appropriateness of the income approach used by management; (iii) testing the completeness and accuracy 
of underlying data used in the income approach; and (iv) evaluating the reasonableness of the significant assumptions used by 
management related to revenue, perpetual growth rates, and the discount rates.  Evaluating management’s assumption related to revenue 
involved evaluating whether the assumption used by management was reasonable considering (i) the current and past performance of the 
Skoal brand; (ii) the consistency with external market and industry data; and (iii) whether the assumption was consistent with evidence 
103

obtained in other areas of the audit.  Professionals with specialized skill and knowledge were used to assist in evaluating (i) the 
appropriateness of the Company’s income approach and (ii) the reasonableness of the perpetual growth rate and discount rate 
assumptions.
Goodwill Impairment Assessment- E-Vapor Reporting Unit
As described in Notes 2 and 6 to the consolidated financial statements, the Company’s goodwill balance was $6.9 billion as of December 
31, 2024, and the goodwill associated with the e-vapor reporting unit was $1.8 billion.  Management conducts an annual review of 
goodwill for potential impairment, and more frequently if an event occurs or circumstances change that would require management to 
perform an interim review.  Management used an income approach to estimate the fair values of the Company’s reporting units.  The 
income approach reflects the discounting of expected future cash flows at a rate of return that incorporates the risk-free rate for use of 
those funds, the expected rate of inflation and the risks associated with realizing expected future cash flows.  If the carrying value of a 
reporting unit that includes goodwill exceeds its fair value, goodwill is considered impaired.  In performing the 2024 valuation, 
management’s cash flow analysis for the e-vapor reporting unit included significant judgments and assumptions related to volume, 
revenue, income, perpetual growth rate and discount rate.  During 2024, management’s annual impairment test of goodwill resulted in no 
impairment charges.
The principal considerations for our determination that performing procedures relating to the goodwill impairment assessment of the e-
vapor reporting unit is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of 
the reporting unit; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s 
significant assumptions related to volume, perpetual growth rate, and discount rate; and (iii) the audit effort involved the use of 
professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on 
the consolidated financial statements.  These procedures included testing the effectiveness of controls relating to management’s goodwill 
impairment assessments, including controls over the valuation of the e-vapor reporting unit.  These procedures also included, among 
others (i) testing management’s process for developing the fair value estimate; (ii) evaluating the appropriateness of the income approach 
used by management; (iii) testing the completeness and accuracy of the underlying data used in the income approach; and (iv) evaluating 
the reasonableness of the significant assumptions used by management related to the volume, perpetual growth rate and discount rate.  
Evaluating management’s assumption related to volume involved considering (i) the current and past performance of the Company’s e-
vapor reporting unit; (ii) the consistency with external market and industry data; and (iii) whether the assumption was consistent with 
evidence obtained in other areas of the audit.  Professionals with specialized skill and knowledge were used to assist in evaluating (i) the 
appropriateness of the Company’s income approach and (ii) the reasonableness of the perpetual growth rate and discount rate 
assumptions.
/s/ PricewaterhouseCoopers LLP
Richmond, Virginia
January 30, 2025
We have served as the Company’s auditor since at least 1934, which is when the Company became subject to SEC reporting 
requirements.  We have not been able to determine the specific year we began serving as auditor of the Company.
104

Report of Management On Internal Control Over Financial Reporting
Management of Altria Group, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting as 
defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended.  Altria Group, Inc.’s internal control 
over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the 
preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United 
States of America.  Internal control over financial reporting includes those written policies and procedures that:
n pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of Altria Group, Inc.;
n provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with accounting principles generally accepted in the United States of America;
n provide reasonable assurance that receipts and expenditures of Altria Group, Inc. are being made only in accordance with the
authorization of management and directors of Altria Group, Inc.; and
n provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that
could have a material effect on the consolidated financial statements.
Internal control over financial reporting includes the controls themselves, monitoring and internal auditing practices and actions taken to 
correct deficiencies as identified.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections 
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of Altria Group, Inc.’s internal control over financial reporting as of December 31, 2024.  
Management based this assessment on criteria for effective internal control over financial reporting described in Internal Control - 
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).  
Management’s assessment included an evaluation of the design of Altria Group, Inc.’s internal control over financial reporting and 
testing of the operational effectiveness of its internal control over financial reporting.  Management reviewed the results of its 
assessment with the Audit Committee of Altria Group, Inc.’s Board of Directors.
Based on this assessment, management determined that, as of December 31, 2024, Altria Group, Inc. maintained effective internal 
control over financial reporting.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, who audited and reported on the consolidated financial 
statements of Altria Group, Inc. included in this report, has audited the effectiveness of Altria Group, Inc.’s internal control over 
financial reporting as of December 31, 2024, as stated in their report herein.
January 30, 2025
105

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A.  Controls and Procedures.
Disclosure Controls and Procedures
We carried out an evaluation, with the participation of our management, including our Chief Executive Officer and Chief Financial 
Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the 
end of the period covered by this Form 10-K.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer 
concluded that our disclosure controls and procedures are effective.
There have been no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially 
affected, or are reasonably likely to materially affect, our internal control over financial reporting.
The Report of Independent Registered Public Accounting Firm and the Report of Management on Internal Control over Financial 
Reporting are included in Item 8.
Item 9B.  Other Information.
During the quarter ended December 31, 2024, none of our directors or officers adopted, modified or terminated any “Rule 10b5-1 
trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
Item 9C.  Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
Not applicable.
Part III
Except for the information relating to the executive officers set forth in Item 10, the information called for by Items 10-14 is hereby 
incorporated by reference to our definitive proxy statement for use in connection with our Annual Meeting of Shareholders to be held on 
May 15, 2025 that is expected to be filed with the SEC on or about April 3, 2025 (“proxy statement”), and, except as indicated therein, 
made a part hereof.
Item 10.  Directors, Executive Officers and Corporate Governance.
Refer to “Board and Governance Matters - Proposal 1 - Election of Directors” and “Board and Governance Matters - Board and 
Committee Governance” sections of the proxy statement.
Information about Our Executive Officers as of February 14, 2025:
Name
Office
Age
Jody L. Begley
Executive Vice President and Chief Operating Officer
53
Steven D’Ambrosia
Vice President and Controller
58
William F. Gifford, Jr.
Chief Executive Officer
54
Salvatore Mancuso
Executive Vice President and Chief Financial Officer
59
Robert A. McCarter III
Executive Vice President and General Counsel
52
Heather A. Newman
Senior Vice President, Chief Strategy & Growth Officer
47
Charles N. Whitaker
Senior Vice President, Chief Human Resources Officer and Chief Compliance Officer
58
All of the above-mentioned executive officers have been employed by Altria or our subsidiaries in various capacities during the past five 
years.
Insider Trading Policy
We have adopted an insider trading policy that governs transactions in our securities by our directors, officers and employees, and by 
Altria and our subsidiaries.  Our insider trading policy is designed to promote compliance with insider trading laws, rules and regulations 
applicable to us.  A copy of our insider trading policy is filed with this Annual Report on Form 10-K as Exhibit 19.
106

Codes of Conduct and Corporate Governance
We have adopted the Altria Code of Conduct for Compliance and Integrity, which complies with requirements set forth in Item 406 of 
Regulation S-K.  This Code of Conduct applies to all of our employees, including our principal executive officer, principal financial 
officer, principal accounting officer or controller, and persons performing similar functions.  We have also adopted a code of business 
conduct and ethics that applies to the members of our Board of Directors.  These documents are available free of charge on our website 
at www.altria.com.
Any waiver granted by us to our principal executive officer, principal financial officer or controller under the Code of Conduct, and 
certain amendments to the Code of Conduct, will be disclosed on our website at www.altria.com within the time period required by 
applicable rules.
In addition, we have adopted corporate governance guidelines and charters for our Audit, Compensation and Talent Development and 
Nominating, Corporate Governance and Social Responsibility Committees and the other committees of our Board of Directors.  All of 
these documents are available free of charge on our website at www.altria.com.
The information on our websites is not, and shall not be deemed to be, a part of this Form 10-K or incorporated into any other filings we 
make with the SEC.
Item 11.  Executive Compensation.
Refer to “Executive Compensation,” and “Board and Governance Matters - Director Compensation” sections of our proxy statement.
Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder 
Matters.
The number of shares to be issued upon exercise or vesting and the number of shares remaining available for future issuance under our 
equity compensation plans at December 31, 2024, were as follows:
Number of Shares
to be Issued upon
Exercise of 
Outstanding
Options and Vesting of
Deferred Stock 
(a) 
Weighted Average
Exercise Price of
Outstanding 
Options 
(b) 
Number of Shares
Remaining Available for
Future Issuance Under Equity 
Compensation 
Plans 
(c) 
Equity compensation plans approved by shareholders (1)
4,949,555 (2)
$—
 19,041,590 (3)
(1) Our shareholders have approved the following plans, shares of which are referenced in column (a) or column (c): the 2015 Performance Incentive
Plan, the 2020 Performance Incentive Plan and the 2015 Stock Compensation Plan for Non-Employee Directors.
(2) Represents 3,973,485 shares of restricted stock units and 976,070 shares that may be issued upon vesting of performance stock units if maximum
performance measures are achieved.
(3) Includes 18,507,747 shares available under the 2020 Performance Incentive Plan and 533,843 shares available under the 2015 Stock Compensation
Plan for Non-Employee Directors, and excludes shares reflected in column (a).
Refer to “Ownership of Equity Securities - Directors, Nominees and Executive Officers” and “Ownership of Equity Securities - Certain 
Other Beneficial Owners” sections of our proxy statement.
Item 13.  Certain Relationships and Related Transactions, and Director Independence.
Refer to “Board and Governance Matters - Our Board of Directors - Related Person Transactions, Director Code and Code of Conduct” 
and “Board and Governance Matters - Our Board of Directors - Director Independence Determinations” sections of our proxy statement.
Item 14.  Principal Accountant Fees and Services.
Refer to “Audit Committee Matters - Independent Registered Public Accounting Firm’s Fees” and “Audit Committee Matters - Pre-
Approval Policy” sections of our proxy statement.
107

Part IV
Item 15.  Exhibits and Financial Statement Schedules.
(a) Index to Consolidated Financial Statements
Page
Consolidated Balance Sheets at December 31, 2024 and 2023
52
Consolidated Statements of Earnings for the years ended December 31, 2024, 2023 and 2022
54
Consolidated Statements of Comprehensive Earnings for the years ended December 31, 2024, 2023 and 2022
55
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022
56
Consolidated Statements of Stockholders’ Equity (Deficit) for the years ended December 31, 2024, 2023 and 2022
58
Notes to Consolidated Financial Statements
59
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
102
Report of Management on Internal Control Over Financial Reporting
105
Schedules have been omitted either because such schedules are not required or are not applicable.
In accordance with Regulation S-X Rule 3-09, the audited financial statements of ABI for the year ended December 31, 2024 will be 
filed by amendment within six months after ABI’s year ended December 31, 2024.
(b) The following exhibits are filed as part of this Form 10-K:
2.1
Distribution Agreement by and between Altria Group, Inc. and Kraft Foods Inc. (now known as Mondelēz 
International, Inc.), dated as of January 31, 2007.  Incorporated by reference to Altria Group, Inc.’s Current Report on 
Form 8-K filed on January 31, 2007 (File No. 1-08940).
2.2
Distribution Agreement by and between Altria Group, Inc. and Philip Morris International Inc., dated as of January 30, 
2008.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on January 30, 2008 (File 
No. 1-08940).
3.1
Articles of Amendment to the Restated Articles of Incorporation of Altria Group, Inc. and Restated Articles of 
Incorporation of Altria Group, Inc.  Incorporated by reference to Altria Group, Inc.’s Annual Report on Form 10-K for 
the year ended December 31, 2002 (File No. 1-08940).
3.2
Amended and Restated By-Laws of Altria Group, Inc. (effective as of October 26, 2022).  Incorporated by reference to 
Altria Group, Inc.’s Current Report on Form 8-K filed on October 27, 2022 (File No. 1-08940).
4.1
Description of Altria Group, Inc.’s Registered Securities.  Incorporated by reference to Altria Group, Inc.’s Annual 
Report on Form 10-K for the year ended December 31, 2022 (File No. 1-08940).
4.2
Indenture between Altria Group, Inc. and The Bank of New York (as successor in interest to JPMorgan Chase Bank, 
formerly known as The Chase Manhattan Bank), as Trustee, dated as of December 2, 1996.  Incorporated by reference 
to Altria Group, Inc.’s Registration Statement on Form S-3/A filed on January 29, 1998 (No. 333-35143).
4.3
First Supplemental Indenture to Indenture, dated as of December 2, 1996, between Altria Group, Inc. and The Bank of 
New York (as successor in interest to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank), as 
Trustee, dated as of February 13, 2008.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K 
filed on February 15, 2008 (File No. 1-08940).
4.4
Indenture among Altria Group, Inc., as Issuer, Philip Morris USA Inc., as Guarantor, and Deutsche Bank Trust 
Company Americas, as Trustee, dated as of November 4, 2008.  Incorporated by reference to Altria Group, Inc.’s 
Registration Statement on Form S-3 filed on November 4, 2008 (No. 333-155009).
4.5
The Registrant agrees to furnish copies of any instruments defining the rights of holders of long-term debt of the 
Registrant and its consolidated subsidiaries that does not exceed 10 percent of the total assets of the Registrant and its 
consolidated subsidiaries to the Commission upon request.
108

10.1
Comprehensive Settlement Agreement and Release related to settlement of Mississippi health care cost recovery 
action, dated as of October 17, 1997.  Incorporated by reference to Altria Group, Inc.’s Annual Report on Form 10-K 
for the year ended December 31, 1997 (File No. 1-08940).
10.2
Settlement Agreement related to settlement of Florida health care cost recovery action, dated August 25, 1997.  
Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on September 3, 1997 (File No. 
1-08940).
10.3
Comprehensive Settlement Agreement and Release related to settlement of Texas health care cost recovery action, 
dated as of January 16, 1998.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on 
January 28, 1998 (File No. 1-08940).
10.4
Settlement Agreement and Stipulation for Entry of Judgment regarding the claims of the State of Minnesota, dated as 
of May 8, 1998.  Incorporated by reference to Altria Group, Inc.’s Quarterly Report on Form 10-Q for the period ended 
March 31, 1998 (File No. 1-08940).
10.5
Settlement Agreement and Release regarding the claims of Blue Cross and Blue Shield of Minnesota, dated as of May 
8, 1998.  Incorporated by reference to Altria Group, Inc.’s Quarterly Report on Form 10-Q for the period ended March 
31, 1998 (File No. 1-08940).
10.6
Stipulation of Amendment to Settlement Agreement and For Entry of Agreed Order regarding the settlement of the 
Mississippi health care cost recovery action, dated as of July 2, 1998.  Incorporated by reference to Altria Group, Inc.’s 
Quarterly Report on Form 10-Q for the period ended June 30, 1998 (File No. 1-08940).
10.7
Stipulation of Amendment to Settlement Agreement and For Entry of Consent Decree regarding the settlement of the 
Texas health care cost recovery action, dated as of July 24, 1998.  Incorporated by reference to Altria Group, Inc.’s 
Quarterly Report on Form 10-Q for the period ended June 30, 1998 (File No. 1-08940).
10.8
Stipulation of Amendment to Settlement Agreement and For Entry of Consent Decree regarding the settlement of the 
Florida health care cost recovery action, dated as of September 11, 1998.  Incorporated by reference to Altria Group, 
Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 1998 (File No. 1-08940).
10.9
Master Settlement Agreement relating to state health care cost recovery and other claims, dated as of November 23, 
1998.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on November 25, 1998, as 
amended by Form 8-K/A filed on December 24, 1998 (File No. 1-08940).
10.10
Stipulation and Agreed Order Regarding Stay of Execution Pending Review and Related Matters, dated as of May 7, 
2001.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on May 8, 2001 (File No. 
1-08940).
10.11
Term Sheet effective December 17, 2012, between Philip Morris USA Inc., the other participating manufacturers, and 
various states and territories for settlement of the 2003 - 2012 Non-Participating Manufacturer Adjustment with those 
states.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on December 18, 2012 (File 
No. 1-08940).
10.12
Intellectual Property Agreement by and between Philip Morris International Inc. and Philip Morris USA Inc., dated as 
of January 1, 2008.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on March 28, 
2008 (File No. 1-08940).
10.13
5-Year Revolving Credit Agreement, dated as of October 24, 2023, among Altria Group, Inc., JPMorgan Chase Bank,
N.A. and Citibank, N.A., as administrative agents, and the lenders named therein.  Incorporated by reference to Altria
Group, Inc.’s Current Report on Form 8-K filed on October 25, 2023 (File No. 1-08940).
10.14
Guarantee made by Philip Morris USA Inc. in favor of the lenders party to the 5-Year Revolving Credit Agreement, 
dated as of October 24, 2023, among Altria Group, Inc., the lenders named therein and JPMorgan Chase Bank, N.A. 
and Citibank, N.A., as administrative agents, dated as of October 24, 2023.  Incorporated by reference to Altria Group, 
Inc.’s Current Report on Form 8-K filed on October 25, 2023 (File No. 1-08940).
10.15
Benefit Equalization Plan, effective September 2, 1974, as amended. Incorporated by reference to Altria Group, Inc.’s 
Annual Report on Form 10-K for the year ended December 31, 2014 (File No. 1-08940).*
10.16
Amendment to Benefit Equalization Plan, effective March 31, 2016.  Incorporated by reference to Altria Group, Inc.’s 
Quarterly Report on Form 10-Q for the period ended March 31, 2016 (File No. 1-08940).*
10.17
Amendment to Benefit Equalization Plan, effective January 1, 2016 and October 1, 2016.  Incorporated by reference to 
Altria Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 1-08940).*
10.18
Amendment to Benefit Equalization Plan, effective January 1, 2019.  Incorporated by reference to Altria Group, Inc.’s 
Annual Report on Form 10-K for year ended December 31, 2018 (File No. 1-08940).*
109

10.19
Form of Employee Grantor Trust Enrollment Agreement.  Incorporated by reference to Altria Group, Inc.’s Annual 
Report on Form 10-K for the year ended December 31, 1995 (File No. 1-08940).*
10.20
Long-Term Disability Benefit Equalization Plan, effective as of January 1, 1989, as amended.  Incorporated by 
reference to Altria Group, Inc.’s Quarterly Report on Form 10-Q for the period ended June 30, 2009 (File No. 
1-08940).*
10.21
Deferred Fee Plan for Non-Employee Directors, as amended and restated effective October 28, 2015.  Incorporated by 
reference to Altria Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 
1-08940).*
10.22
2015 Stock Compensation Plan for Non-Employee Directors, as amended and restated effective October 26, 2022.  
Incorporated by reference to Altria Group, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 
2022 (File No. 1-08940).*
10.23
2015 Performance Incentive Plan, effective on May 1, 2015.  Incorporated by reference to Altria Group, Inc.’s 
definitive proxy statement on Schedule 14A filed on April 9, 2015 (File No. 1-08940).*
10.24
2020 Performance Incentive Plan.  Incorporated by reference to Exhibit A to Altria Group, Inc.'s Definitive Proxy 
Statement on Schedule 14A filed on April 2, 2020, as amended by Altria Group, Inc.'s Supplement to Proxy Statement 
on Schedule 14A filed on April 17, 2020 (File No. 1-08940).*
10.25
Form of Indemnity Agreement.  Incorporated by reference to Altria Group, Inc.’s Current Report on Form 8-K filed on 
October 30, 2006 (File No. 1-08940).
10.26
Form of Restricted Stock Unit Agreement, dated as of February 26, 2019.  Incorporated by reference to Altria Group, 
Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2019 (File No. 1-08940).*
10.27
Form of Restricted Stock Unit Agreement (2020).  Incorporated by reference to Altria Group, Inc.’s Quarterly Report 
on Form 10-Q for the period ended March 31, 2020 (File No. 1-08940).*
10.28
Form of Performance Stock Unit Agreement (2020).  Incorporated by reference to Altria Group, Inc.’s Quarterly 
Report on Form 10-Q for the period ended March 31, 2020 (File No. 1-08940).*
10.29
Form of Restricted Stock Unit Agreement (2021).  Incorporated by reference to Altria Group, Inc.’s Quarterly Report 
on Form 10-Q for the period ended March 31, 2021 (File No. 1-08940).*
10.30
Form of Performance Stock Unit Agreement (2021).  Incorporated by reference to Altria Group, Inc.’s Quarterly 
Report on Form 10-Q for the period ended March 31, 2021 (File No. 1-08940).*
10.31
Form of Restricted Stock Unit Agreement (2022).  Incorporated by reference to Altria Group, Inc.’s Quarterly Report 
on Form 10-Q for the period ended March 31, 2022 (File No. 1-08940).*
10.32
Form of Performance Stock Unit Agreement (2022).  Incorporated by reference to Altria Group, Inc.’s Quarterly 
Report on Form 10-Q for the period ended March 31, 2022 (File No. 1-08940).*
10.33
Form of Restricted Stock Unit Agreement (2023).  Incorporated by reference to Altria Group, Inc.’s Quarterly Report 
on Form 10-Q for the period ended March 31, 2023 (File No. 1-08940).*
10.34
Form of Performance Stock Unit Agreement (2023).  Incorporated by reference to Altria Group, Inc.’s Quarterly 
Report on Form 10-Q for the period ended March 31, 2023 (File No. 1-08940).*
10.35
Form of Restricted Stock Unit Agreement (2024).  Incorporated by reference to Altria Group, Inc.’s Quarterly Report 
on Form 10-Q for the period ended March 31, 2024 (File No. 1-08940).*
10.36
Form of Performance Stock Unit Agreement (2024).  Incorporated by reference to Altria Group, Inc.’s Quarterly 
Report on Form 10-Q for the period ended March 31, 2024 (File No. 1-08940).*
10.37
Form of Executive Confidentiality and Non-Competition Agreement (October 2018).  Incorporated by reference to 
Altria Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 1-08940).*
10.38
Form of Confidentiality and Non-Competition Agreement (February 2019).  Incorporated by reference to Altria Group, 
Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2019 (File No. 1-08940).*
10.39
Form of Letter Regarding Reimbursement of Legal Expenses.  Incorporated by reference to Altria Group, Inc.’s 
Annual Report on Form 10-K for the year ended December 31, 2020 (File No. 1-08940).*
10.40
Time Sharing Agreement between Altria Client Services LLC and William F. Gifford, Jr., dated February 23, 2023.  
Incorporated by reference to Altria Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 
(File No. 1-08940).*
110

Item 16.  Form 10-K Summary.
None.
10.41
Form of Agreement and General Release (September 2019).  Incorporated by reference to Altria Group, Inc.’s Annual 
Report on Form 10-K for the year ended December 31, 2019 (File No. 1-08940).*
10.42
United Kingdom Sub-Plan of the Altria Group, Inc. 2020 Performance Plan, as Amended.  Incorporated by reference 
to the Altria Group, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2024 (File No. 
1-08940).*
19
Insider trading policy.
21
Subsidiaries of Altria Group, Inc.
22
Guarantor Subsidiary of the Registrant.
23
Consent of independent registered public accounting firm.
24
Powers of attorney.
31.1
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, 
as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, 
as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the 
Sarbanes-Oxley Act of 2002.
32.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the 
Sarbanes-Oxley Act of 2002.
97
Altria Group, Inc. Dodd-Frank Compensation Recoupment Policy.  Incorporated by reference to Altria Group, Inc.’s 
Annual Report on Form 10-K for the year ended December 31, 2023 (File No. 1-08940).
99.1
Certain Litigation Matters.
99.2
Trial Schedule for Certain Cases.
101.INS
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its 
XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase.
104
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
* Denotes management contract or compensatory plan or arrangement in which directors or executive officers are eligible to participate.
111

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused 
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ALTRIA GROUP, INC.
By: /s/ WILLIAM F. GIFFORD, JR.
(William F. Gifford, Jr.
Chief Executive Officer)
Date: February 26, 2025
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following 
persons on behalf of the registrant and in the capacities and on the date indicated:
Signature
Title
Date
/s/ WILLIAM F. GIFFORD, JR.
 (William F. Gifford, Jr.)
Director and Chief Executive Officer
February 26, 2025
/s/ SALVATORE MANCUSO
 (Salvatore Mancuso)
Executive Vice President and Chief Financial Officer
February 26, 2025
/s/ STEVEN D’AMBROSIA
 (Steven D’Ambrosia)
Vice President and Controller
February 26, 2025
* IAN L.T. CLARKE,
Directors
MARJORIE M. CONNELLY,
R. MATT DAVIS,
DEBRA J. KELLY-ENNIS,
KATHRYN B. MCQUADE,
GEORGE MUÑOZ,
VIRGINIA E. SHANKS,
RICHARD S. STODDART,
ELLEN R. STRAHLMAN,
M. MAX YZAGUIRRE
* By:
/s/ WILLIAM F. GIFFORD, JR.
(WILLIAM F. GIFFORD, JR.
ATTORNEY-IN-FACT)
February 26, 2025
112

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114

Design: Andra Hoffman | andradesignstudio.com  
Photography: Andy Lilien, Casey Templeton   
Printer: DG3 | Diversified Global Graphics Group   
© Copyright 2025 Altria
Shareholder Response Center: 
Computershare Trust Company, 
N.A. (Computershare), our transfer 
agent, will be happy to answer  
questions about your accounts,  
certificates, dividends or the  
Direct Stock Purchase and  
Dividend Reinvestment Plan. 
Within the U.S. and Canada,  
shareholders may call toll-free: 
1-800-442-0077
From outside the U.S. or Canada,  
shareholders may call:  
1-781-575-3572
Postal address: 
Computershare Trust  
Company, N.A. 
P.O. Box 43078  
Providence, RI 02940-3078
To eliminate duplicate mailings, 
please contact Computershare  
(if you are a registered sharehold-
er) or your broker (if you hold your 
shares through a brokerage firm). 
Direct Stock Purchase and  
Dividend Reinvestment Plan: 
Altria offers a Direct Stock  
Purchase and Dividend 
Reinvestment Plan, administered 
by Computershare. For more 
information, please contact 
Computershare.
Shareholder Publications:
Altria makes a variety of publica-
tions and reports available. These 
include the Annual Report, news 
releases and other publications.  
For copies, please visit our web-
site at: www.altria.com/investors
Altria makes available free of 
charge its filings with the U.S.  
Securities and Exchange  
Commission (SEC), such as Proxy 
Statements and Reports on Form 
10-K, 10-Q and 8-K. 
For copies, please visit our  
website at:  
www.altria.com/SECfilings
If you do not have Internet  
access, you may call:  
1-804-484-8222
Internet Access Helps  
Reduce Costs:
As a convenience to shareholders 
and an important cost-reduction 
and environmentally friendly 
measure, you can register to 
receive future shareholder 
materials (i.e., Annual Report and 
Proxy Statement) electronically. 
Shareholders also can vote their 
proxies electronically. 
For more information, please visit 
our website at: 
www.altria.com/investors
Additional Information:
The information on the respec-
tive websites of Altria and its 
subsidiaries is not, and shall not 
be deemed to be, a part of this 
report or incorporated into any 
filings Altria makes with the SEC. 
Trademarks and service marks 
in this report are the registered 
property of or licensed by Altria  
or its subsidiaries.
2025 Annual Meeting:
The Altria Annual Meeting of 
Shareholders will be held at 
9:00 a.m. (Eastern Time) on 
Thursday, May 15, 2025. For more 
information about the Annual 
Meeting, please refer to Altria’s 
2025 Proxy Statement or call:  
1-804-484-8838
Transfer Agent and Registrar: 
Computershare Trust   
Company, N.A. 
P.O. Box 43078  
Providence, RI 02940-3078
Independent Auditors:
PricewaterhouseCoopers LLP
1021 E. Cary Street, Suite 1250 
Richmond, VA 23219-4058 
Stock Exchange Listing:
The principal stock 
exchange on which 
Altria’s common 
stock (par value  
$0.33        per share) is listed is the 
New York Stock Exchange (ticker 
symbol: MO). At February 14, 
2025, there were approximately 
46,000 holders of record of 
Altria’s common stock.
S H A R E H O L D E R  I N F O R M AT I O N
B O A R D  O F  D I R E C T O R S
Ian L.T. Clarke1,4,6  
Retired Chief Financial Officer,   
 Greater Toronto Airports  
 Authority 
Director since 2022 
Marjorie M. Connelly1,2,3,6 
Retired Chief Operating Officer, 
 Convergys Corporation 
Director since 2021
R. Matt Davis2,5,6 
Retired President, North America, 
 and Senior Vice President,  
 Global Corporate Affairs,  
 Dow Inc. and 
 President, Driftwood  
 Leadership, LLC  
Director since 2021
William F. Gifford, Jr.3 
Chief Executive Officer, 
 Altria Group, Inc. 
Director since 2020 
Debra J. Kelly-Ennis1,3,5,6 
Retired President and  
 Chief Executive Officer, 
 Diageo Canada, Inc. 
Director since 2013
Kathryn B. McQuade 2,3,4
Retired Executive Vice President  
 and Chief Financial Officer,   
 Canadian Pacific Railway 
 Limited
Director since 2012
George Muñoz1,2,3,4
Principal, Muñoz Investment   
 Banking Group, LLC and
 Partner, Tobin & Muñoz 
Director since 2004
Virginia E. Shanks 2,3,4,5
Retired Executive Vice President  
 and Chief Administrative Officer,
 Pinnacle Entertainment, Inc.  
Director since 2017
Richard S. Stoddart1,5,6 
Chair of the Board, Hasbro, Inc.  
 and former President and  
 Chief Executive Officer,  
 InnerWorkings, Inc. 
Director since 2025
Ellen R. Strahlman1,3,5,6
Retired Executive Vice President,  
 Research & Development and  
 Chief Medical Officer, Becton,  
 Dickinson and Company 
Director since 2020
M. Max Yzaguirre 2,4,5
Retired Executive Chairman,  
 
 Forbes Bros. Holdings, Ltd.
Director since 2022
  
 Independent Chair of the Board 
  
Kathryn B. McQuade
 Committees
1  Member of Audit Committee,  
 Marjorie M. Connelly, Chair
2  Member of Compensation and  
 Talent Development Committee, 
 George Muñoz, Chair 
3  Member of Executive Committee, 
 Kathryn B. McQuade, Chair
4  Member of Finance Committee,  
 Virginia E. Shanks, Chair
5   Member of Innovation Committee, 
 Ellen R. Strahlman, Chair
6  Member of Nominating,  
 Corporate Governance and  
 Social Responsibility Committee,  
 Debra J. Kelly-Ennis, Chair
1⁄3  

Altria Group, Inc.     |     6601 W. Broad Street     |     Richmond, VA 23230-1723     |     altria.com