What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 249 added, 129 removed, 881 unchanged (30% of the section changed)

5 unchanged sentences

______________________________

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 2,367 $ 4,474

19 unchanged sentences

________________________________________________

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Current portion of long-term debt $ 1,684 $ 1,569

19 unchanged sentences

Accumulated other comprehensive losses ( 2,381 ) ( 2,627 )

Cost of repurchased stock ( 1,135,384,913 shares at March 31, 2026 and 1,131,643,020 shares at December 31, 2025)

Cost of repurchased stock ( 1,136,217,391 shares at June 30, 2026 and 1,131,643,020 shares at December 31, 2025)

( 43,505 ) ( 43,183 )

9 unchanged sentences

_____________________________________

For the Three Months Ended March 31, 2026 2025

For the Six Months Ended June 30, For the Three Months Ended June 30,

2026 2025 2026 2025

Net revenues $ 11,539 $ 11,361 $ 6,111 $ 6,102

3 unchanged sentences

Marketing, administration and research costs 1,213 1,207 663 619

Exit costs 21 1 21 1

Impairment of goodwill — 873 — —

14 unchanged sentences

_____________________

For the Three Months Ended March 31, 2026 2025

For the Six Months Ended June 30, For the Three Months Ended June 30,

2026 2025 2026 2025

Net earnings $ 4,481 $ 3,455 $ 2,298 $ 2,378

9 unchanged sentences

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

for the Three Months Ended March 31, 2026 and 2025

for the Six Months Ended June 30, 2026 and 2025

(in millions of dollars, except per share data)

17 unchanged sentences

Other — — — — ( 3 ) — ( 3 )

Balances, March 31, 2026

Balances, June 30, 2026

$ 935 $ 5,901 $ 36,382 $ ( 2,381 ) $ ( 43,505 ) $ 50 $ ( 2,618 )

10 unchanged sentences

Other — — — — ( 6 ) — ( 6 )

Balances, June 30, 2025

$ 935 $ 5,895 $ 35,525 $ ( 2,831 ) $ ( 42,780 ) $ 50 $ ( 3,206 )

(1) Represents the non-cash contribution made by JTIUH to Horizon.

Background and Basis of Presentation .

See notes to condensed consolidated financial statements.

Altria Group, Inc.

and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

for the Three Months Ended June 30, 2026 and 2025

( in millions of dollars, except per share data)

_______________________________________

Attributable to Altria

Stock Additional

Capital Earnings

Business Accumulated

Comprehensive

Losses Cost of

Stockholders’

Equity (Deficit)

Balances, March 31, 2026

$ 935 $ 5,894 $ 35,859 $ ( 2,450 ) $ ( 43,449 ) $ 50 $ ( 3,161 )

Net earnings — — 2,298 — — — 2,298

Other comprehensive earnings (losses), net of deferred income taxes

— — — 69 — — 69

Stock award activity

— 7 — — — — 7

Cash dividends declared ($ 1.06 per share)

— — ( 1,775 ) — — — ( 1,775 )

Repurchases of common stock — — — — ( 55 ) — ( 55 )

Other — — — — ( 1 ) — ( 1 )

Balances, June 30, 2026

$ 935 $ 5,901 $ 36,382 $ ( 2,381 ) $ ( 43,505 ) $ 50 $ ( 2,618 )

Balances, March 31, 2025

$ 935 $ 5,883 $ 34,868 $ ( 2,691 ) $ ( 42,505 ) $ 50 $ ( 3,460 )

Net earnings — — 2,378 — — — 2,378

Other comprehensive earnings (losses), net of deferred income taxes

— — — ( 140 ) — — ( 140 )

Stock award activity

— 12 — — 2 — 14

Cash dividends declared ($ 1.02 per share)

— — ( 1,721 ) — — — ( 1,721 )

Repurchases of common stock — — — — ( 274 ) — ( 274 )

Other — — — — ( 3 ) — ( 3 )

Balances, June 30, 2025

$ 935 $ 5,895 $ 35,525 $ ( 2,831 ) $ ( 42,780 ) $ 50 $ ( 3,206 )

(1) Represents the non-cash contribution made by JTIUH to Horizon.

6 unchanged sentences

_____________________

For the Three Months Ended March 31, 2026 2025

For the Six Months Ended June 30, 2026 2025

Cash Provided by (Used in) Operating Activities

5 unchanged sentences

(Income) losses from investments in equity securities ( 245 ) ( 291 )

Dividends from ABI 186 181

Exit costs, net of cash paid 11 ( 4 )

37 unchanged sentences

▪ Background:

At March 31, 2026, our wholly owned subsidiaries included Philip Morris USA Inc.

At June 30, 2026, our wholly owned subsidiaries included Philip Morris USA Inc.

(“PM USA”), which is engaged in the manufacture and sale of cigarettes;

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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 March 31, 2026, 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.

At March 31, 2026, we owned a 75 % economic interest in Horizon Innovations LLC (“Horizon”), a joint venture with JTI (US) Holding, Inc.

At June 30, 2026, 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.

At June 30, 2026, we owned a 75 % economic interest in Horizon Innovations LLC (“Horizon”), a joint venture with JTI (US) Holding, Inc.

(“JTIUH”), a subsidiary of Japan Tobacco Inc., which owned the remaining 25 % economic interest.

1 unchanged sentence

marketing and commercialization of heated tobacco stick products owned by either party.

At March 31, 2026, Horizon had no products in the U.S.

At March 31, 2026, we had investments in Anheuser-Busch InBev SA/NV (“ABI”) and Cronos Group Inc.

At June 30, 2026, Horizon had no products in the U.S.

At June 30, 2026, we had investments in Anheuser-Busch InBev SA/NV (“ABI”) and Cronos Group Inc.

For further discussion of our investments, see Note 4.

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These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”).

Certain immaterial prior year amounts have been reclassified to conform with the current year’s presentation.

On January 1, 2026, we adopted Accounting Standards Update (“ASU”) 2025-05, Financial Instruments-Credit Losses (Topic 326):

2 unchanged sentences

We elected to apply this practical expedient upon adoption of ASU No.

2025-05, which had no impact on our condensed consolidated financial statements for the period ended March 31, 2026.

2025-05, which had no impact on our condensed consolidated financial statements.

For a description of issued accounting guidance applicable to, but not yet adopted by, us, see Note 14.

2 unchanged sentences

Goodwill and other intangible assets, net, were as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions) Goodwill Other Intangible Assets, net Goodwill Other Intangible Assets, net

1 unchanged sentence

Oral tobacco products segment 5,078 8,629 5,078 8,646

610 334 610 321

Other 610 326 610 (1)

Total $ 5,787 $ 11,850 $ 5,787 $ 11,876

(1) Comprised primarily of e-vapor reporting unit goodwill and definite-lived intangible assets related to our 2023 acquisition of NJOY.

(1) Comprised of e-vapor reporting unit goodwill related to our 2023 acquisition of NJOY.

Other intangible assets consisted of the following:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization

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Total other intangible assets $ 12,765 $ 915 $ 12,745 $ 869

At March 31, 2026, 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.

At June 30, 2026, 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, certain cigarette trademarks and customer relationships, are amortized over a weighted-average period of approximately 19 years.

Pre-tax amortization expense for definite-lived intangible assets was $ 23 million and $ 37 million for the three months ended March 31, 2026 and 2025, respectively.

Pre-tax amortization expense for definite-lived intangible assets was $ 46 million and $ 74 million for the six months ended June 30, 2026 and 2025, respectively, and $23 million and $37 million for the three months ended June 30, 2026 and 2025, respectively.

The changes in goodwill and net carrying amount of intangible assets were as follows:

For the Three Months Ended March 31, 2026 For the Year Ended

For the Six Months Ended June 30, 2026 For the Year Ended

December 31, 2025

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We conduct a required annual review of goodwill and indefinite-lived intangible assets for potential impairment as of October 1 of each year, in accordance with our accounting policy, and more frequently if an event occurs or circumstances change that would require us to perform an interim quantitative impairment assessment.

There have been no events or changes in circumstances that indicate an interim quantitative impairment assessment was required as of March 31, 2026.

There have been no events or changes in circumstances that indicate an interim quantitative impairment assessment was required as of June 30, 2026.

Our annual impairment test of goodwill and indefinite-lived intangible assets as of October 1, 2025 resulted in a non-cash, pre-tax impairment of $ 970 million to our e-vapor reporting unit’s definite-lived intangible assets and a non-cash impairment of $ 285 million to our e-vapor reporting unit goodwill, which we recorded in our consolidated statement of earnings for the year ended December 31, 2025.

At March 31, 2026 and December 31, 2025, accumulated impairment losses related to goodwill were $ 1,158 million, which related to the e-vapor reporting unit.

At June 30, 2026 and December 31, 2025, accumulated impairment losses related to goodwill were $ 1,158 million, which related to the e-vapor reporting unit.

First Quarter of 2025 E-vapor Reporting Unit Goodwill Impairment

2 unchanged sentences

As further discussed in Note 12.

Contingencies , 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.

Contingencies , 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.

In January 2025, the U.S.

13 unchanged sentences

Exit and Implementation Costs

Pre-tax implementation costs consisted of the following:

For the Three Months Ended March 31,

Pre-tax exit and implementation costs consisted of the following:

Exit Costs Implementation Costs Exit Costs Implementation Costs

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 (1)

2026 2025 2026 (2)

USSTC Facilities Consolidation:

Oral tobacco products segment $ 19 $ — $ 59 $ — $ 19 $ — $ 59 $ —

Optimize & Accelerate initiative:

Smokeable products segment 2 1 12 25 2 1 7 12

Oral tobacco products segment — — 2 4 — — 1 2

(1) Recorded in marketing, administration and research costs in our condensed consolidated statements of earnings.

There were no exit costs for the three months ended March 31, 2026 and 2025.

In October 2024, we announced a multi-phase Optimize & Accelerate initiative (“Initiative”) designed to modernize our ways of working and enable us to increase our organization’s speed, efficiency and effectiveness by centralizing work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes.

We estimate total pre-tax charges for the Initiative to be approximately $ 175 million.

As of March 31, 2026, total pre-tax charges since the inception of the Initiative were $ 130 million, consisting of employee separation costs of $ 43 million and implementation costs of $ 87 million.

We expect to record the majority of the remaining charges by the end of 2027.

All of these charges result in cash expenditures and consist of severance payments associated with employee separations, implementation costs for new technology and business advisory services and other costs.

We record employee separation costs when probable and reasonably estimable.

As of March 31, 2026, total cash payments since the inception of the Initiative were $ 103 million, consisting of $ 23 million for exit costs and $ 80 million for implementation costs.

A summary of the charges and cash paid for exit and implementation costs related to the Initiative is as follows:

Total Optimize & Accelerat e initiative

2 1 14 29 2 1 8 14

Total $ 21 $ 1 $ 73 $ 29 $ 21 $ 1 $ 67 $ 14

Amounts are recorded in our condensed consolidated statements of earnings as follows:

(1) Cost of sales ($ 59 million) and marketing, administration and research costs ($ 14 million).

(2) Cost of sales ($ 59 million) and marketing, administration and research costs ($ 8 million).

(3) Marketing, administration and research costs.

The movement in liabilities related to exit and implementation costs is as follows:

(in millions) Exit Costs Implementation Costs Total

3 unchanged sentences

Balances at December 31, 2025 25 9 34

Charges — 6 6

Cash paid ( 10 ) ( 14 ) ( 24 )

Balances at March 31, 2026 $ 20 (1) $ 7 $ 27

(1) Restructuring liabilities, all of which were severance liabilities.

Balances at June 30, 2026 $ 36 (2) $ 9 $ 45

(1) Implementation costs exclude non-cash asset-related charges associated with the USSTC Facilities Consolidation discussed below.

(2) Represents liabilities for employee separation costs.

USSTC Facilities Consolidation

In May 2026, we announced our plan to transition USSTC’s manufacturing operations at our Nashville, Tennessee plant to a new facility to be constructed on our existing campus in Hopkinsville, Kentucky (“USSTC Facilities Consolidation”).

We expect the consolidation to be substantially completed in the first quarter of 2028.

We estimate total pre-tax charges for the USSTC Facilities Consolidation to be approximately $ 180 million, consisting of employee separation and other associated costs, which will be paid in cash, as well as certain asset-related charges for inventory and machinery and equipment, which are non-cash charges.

For the six and three months ended June 30, 2026, we incurred pre-tax charges of $ 78 million, which consisted of non-cash asset-related charges ($ 59 million) and employee separation costs ($ 19 million).

As of June 30, 2026, there have been no cash payments related to the USSTC Facilities Consolidation.

Optimize & Accelerate

We estimate total pre-tax charges for the Initiative to be approximately $ 175 million.

As of June 30, 2026, total pre-tax charges since the inception of the Initiative were $ 140 million, consisting of employee separation costs of $ 45 million and implementation costs of $ 95 million.

We expect to record the majority of the remaining charges by the end of 2027.

As of June 30, 2026, total cash payments since the inception of the Initiative were $ 114 million, consisting of $ 28 million for exit costs and $ 86 million for implementation costs.

Investments in Equity Securities

The carrying amount of our investments consisted of the following:

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

ABI $ 8,577 $ 8,303

2 unchanged sentences

(Income) losses from our investments in equity securities consisted of the following:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

$ ( 240 ) (2)

$ ( 273 ) $ ( 81 ) (2)

( 5 ) ( 18 ) ( 6 ) —

(Income) losses from investments in equity securities $ ( 245 ) $ ( 291 ) $ ( 87 ) $ ( 148 )

(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 $ 114 million of pre-tax dilution loss resulting from ABI’s share activity that reduced our ABI ownership interest.

Investment in ABI

At March 31, 2026, we had an approximate 8.2 % ownership interest in ABI, consisting of approximately 125 million restricted shares of ABI (“Restricted Shares”) and approximately 34 million ordinary shares of ABI.

At June 30, 2026, we had an approximate 8.1 % ownership interest in ABI, consisting of approximately 125 million restricted shares of ABI (“Restricted Shares”) and approximately 34 million ordinary shares of ABI.

Our Restricted Shares:

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Because 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 March 31, 2026, the fair value of our investment in ABI was $ 11.0 billion, which exceeded its carrying value of $ 8.6 billion by approximately 27 %.

At June 30, 2026, the fair value of our investment in ABI was $ 13.2 billion, which exceeded its carrying value of $ 8.6 billion by approximately 54 %.

At December 31, 2025, the fair value of our investment in ABI was $ 10.3 billion, which exceeded its carrying value of $ 8.3 billion by approximately 24 %.

Investment in Cronos

At March 31, 2026, we had an approximate 41.6 % ownership interest in Cronos, consisting of approximately 157 million shares, which we account for under the equity method of accounting.

At June 30, 2026, we had an approximate 42.2 % 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 March 31, 2026, the fair value of our investment in Cronos was $ 396 million, which exceeded its carrying value of $ 320 million by approximately 24 %.

At June 30, 2026, the fair value of our investment in Cronos was $ 432 million, which exceeded its carrying value of $ 319 million by approximately 35 %.

At December 31, 2025, the fair value of our investment in Cronos was $ 411 million, which exceeded its carrying value of $ 314 million by approximately 31 %.

2 unchanged sentences

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 March 31, 2026 and December 31, 2025, we had no outstanding foreign currency contracts.

At June 30, 2026 and December 31, 2025, we had no outstanding foreign currency contracts.

The aggregate carrying value and fair value of our total long-term debt were as follows:

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Carrying value $ 24,577 $ 25,709

7 unchanged sentences

dollar exchange rate in accumulated other comprehensive losses related to ABI.

We recognized pre-tax (gains) losses of our net investment hedges of $( 43 ) million and $ 139 million for the three months ended March 31, 2026 and 2025, respectively.

We recognized pre-tax (gains) losses of our net investment hedges of $( 73 ) million and $ 403 million for the six months ended June 30, 2026 and 2025, respectively, and $( 30 ) million and $ 264 million for the three months ended June 30, 2026 and 2025, respectively.

Contingent Payments

4 unchanged sentences

The changes in the liability associated with contingent payments were as follows:

For the Three Months Ended March 31, 2026 For the Year Ended December 31, 2025

For the Six Months Ended June 30, 2026 For the Year Ended December 31, 2025

(in millions)

10 unchanged sentences

Net periodic benefit cost (income) consisted of the following:

Pension Postretirement

For the Three Months Ended March 31,

Pension Postretirement Pension Postretirement

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025 2026 2025 2026 2025

6 unchanged sentences

Prior service cost (credit) 3 2 ( 20 ) ( 20 ) 2 1 ( 10 ) ( 10 )

1 1 ( 10 ) ( 10 )

Net periodic benefit cost (income) $ 16 $ ( 11 ) $ 3 $ 6 $ 10 $ ( 6 ) $ 2 $ 3

Employer Contributions

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 Internal Revenue Service regulations.

We made employer contributions of $ 4 million to our pension plans and did no t make any contributions to our postretirement plans during the three months ended March 31, 2026.

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 Internal Revenue Service (“IRS”) regulations.

We made employer contributions of $ 8 million to our pension plans and did no t make any contributions to our postretirement plans during the six months ended June 30, 2026.

Currently, we anticipate making additional employer contributions in 2026 to our pension and postretirement plans of up to approximately $ 52 million and $ 100 million, respectively.

2 unchanged sentences

We calculated basic and diluted earnings per share (“EPS”) using the following:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

6 unchanged sentences

Changes in each component of accumulated other comprehensive losses, net of deferred income taxes, attributable to Altria were as follows:

For the Three Months Ended March 31, 2026

For the Six Months Ended June 30, 2026

(in millions) Benefit Plans ABI Currency Translation Adjustments Accumulated

2 unchanged sentences

Other comprehensive earnings (losses) before reclassifications

— 275 ( 7 ) 268

Deferred income taxes — ( 59 ) 1 ( 58 )

Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes

— 216 ( 6 ) 210

Amounts reclassified to net earnings 29 18 — 47

2 unchanged sentences

Other comprehensive earnings (losses), net of deferred income taxes 22 230 (1)

Balances, June 30, 2026 $ ( 1,393 ) $ ( 987 ) $ ( 1 ) $ ( 2,381 )

For the Three Months Ended June 30, 2026

(in millions) Benefit Plans ABI Currency Translation Adjustments Accumulated

Comprehensive

Balances, March 31, 2026

For the Three Months Ended March 31, 2025

$ ( 1,405 ) $ ( 1,054 ) $ 9 $ ( 2,450 )

Other comprehensive earnings (losses) before reclassifications

Deferred income taxes — ( 15 ) 1 ( 14 )

Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes

— 55 ( 10 ) 45

Amounts reclassified to net earnings 15 15 — 30

Deferred income taxes ( 3 ) ( 3 ) — ( 6 )

Amounts reclassified to net earnings, net of deferred income taxes 12 12 — 24

Other comprehensive earnings (losses), net of deferred income taxes 12 67 (1)

Balances, June 30, 2026 $ ( 1,393 ) $ ( 987 ) $ ( 1 ) $ ( 2,381 )

For the Six Months Ended June 30, 2025

(in millions) Benefit Plans ABI Currency Translation Adjustments Accumulated

11 unchanged sentences

( 20 ) ( 431 )

Balances, June 30, 2025 $ ( 1,389 ) $ ( 1,432 ) $ ( 10 ) $ ( 2,831 )

For the Three Months Ended June 30, 2025

(in millions) Benefit Plans ABI Currency Translation Adjustments Accumulated

Comprehensive

Balances, March 31, 2025

$ ( 1,391 ) $ ( 1,287 ) $ ( 13 ) $ ( 2,691 )

Other comprehensive earnings (losses) before reclassifications

— ( 179 ) 3 ( 176 )

Deferred income taxes — 45 — 45

Other comprehensive earnings (losses) before reclassifications, net of deferred income taxes

— ( 134 ) 3 ( 131 )

Amounts reclassified to net earnings 2 ( 14 ) — ( 12 )

Deferred income taxes — 3 — 3

Amounts reclassified to net earnings, net of deferred income taxes 2 ( 11 ) — ( 9 )

Other comprehensive earnings (losses), net of deferred income taxes 2 ( 145 ) (1)

Balances, June 30, 2025 $ ( 1,389 ) $ ( 1,432 ) $ ( 10 ) $ ( 2,831 )

(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.

2 unchanged sentences

Pre-tax amounts by component, reclassified from accumulated other comprehensive losses to net earnings were as follows:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

2 unchanged sentences

Prior service credit ( 17 ) ( 18 ) ( 8 ) ( 9 )

18 ( 28 ) 15 ( 14 )

Pre-tax amounts reclassified from accumulated other comprehensive losses to net earnings $ 47 $ ( 24 ) $ 30 $ ( 12 )

4 unchanged sentences

Segment Reporting

At March 31, 2026, our reportable segments were (i) smokeable products, consisting of combustible cigarettes and machine-made large cigars;

At June 30, 2026, 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.

For the year ended December 31, 2025, we concluded that our e-vapor products operating segment met the quantitative threshold for presentation as a reportable segment in accordance with Accounting Standards Codification 280, Segment Reporting (“ASC 280”), as a result of the non-cash impairments of e-vapor reporting unit goodwill and related definite-lived intangible assets recorded in 2025.

For further discussion of non-cash impairments, see Note 2.

Goodwill and Other Intangible Assets, net .

As a result, in our 2025 Form 10-K, we presented e-vapor products as a reportable segment (previously in our all other category) and recast segment information for comparative periods.

As of March 31, 2026, we concluded that the e-vapor products operating segment was not expected to be of continuing significance and did not meet the quantitative thresholds as prescribed under ASC 280 for separate reportable segments.

During the first quarter of 2026, we concluded that the e-vapor products operating segment was not expected to be of continuing significance and did not meet the quantitative thresholds as prescribed under ASC 280 for separate reportable segments.

As such, the e-vapor products operating segment is no longer considered a reportable segment, and we included the e-vapor products operating segment results in our all other category for all periods presented.

At March 31, 2026, our all other category included (i) e-vapor products, consisting of our NJOY business;

At June 30, 2026, our all other category included (i) e-vapor products, consisting of our NJOY business;

(ii) Horizon;

9 unchanged sentences

Segment data were as follows:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Smokeable products segment OCI consisted of the following, including expenses under the significant expense principle in accordance with GAAP:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

12 unchanged sentences

Other segment items for our oral tobacco products segment include manufacturing, marketing, administration and research costs and excise taxes on products sold.

Total oral tobacco products other segment items were $ 234 million and $ 221 million for the three months ended March 31, 2026 and 2025, respectively.

Total oral tobacco products other segment items were $ 566 million and $ 476 million for the six months ended June 30, 2026 and 2025, respectively, and $ 332 million and $ 255 million for the three months ended June 30, 2026 and 2025, 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.

Details of our depreciation expense and capital expenditures were as follows:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

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The comparability of OCI for our reportable segments was affected by the following:

▪ Exit and Implementation Costs:

We recorded exit and implementation costs of $ 94 million and $ 30 million for the six months ended June 30, 2026 and 2025, respectively, and $ 88 million and $ 15 million for the three months ended June 30, 2026 and 2025, respectively.

For further discussion and a breakdown of these costs by segment, see Note 3.

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 Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

Smokeable products segment $ 69 $ 40 $ 67 $ 4

General corporate expenses — 1 — 1

Interest and other debt expense, net

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Short-term Borrowings and Borrowing Arrangements

At March 31, 2026 and December 31, 2025, we had no short-term borrowings.

At June 30, 2026 and December 31, 2025, we had no short-term borrowings.

We have a $ 3.0 billion senior unsecured 5-year revolving credit agreement (“Credit Agreement”) that expires on October 24, 2029 and includes an option, subject to certain conditions, for us to extend the term for an additional one-year period.

We intend to use any borrowings under our Credit Agreement for general corporate purposes.

At March 31, 2026, we had availability under the 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.

and Standard & Poor’s Financial Services LLC.

The applicable percentage for borrowings under our Credit Agreement at March 31, 2026 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.

At June 30, 2026, we had availability under the Credit Agreement for borrowings of up to an aggregate principal amount of $ 3.0 billion.

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 for the four most recent fiscal quarters.

At March 31, 2026, we were in compliance with our covenants in our Credit Agreement.

At June 30, 2026, 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.

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Long-term Debt

The aggregate carrying value of our total long-term debt at March 31, 2026 and December 31, 2025 was $ 24.6 billion and $ 25.7 billion, respectively.

The aggregate carrying value of our total long-term debt at June 30, 2026 and December 31, 2025 was $ 24.6 billion and $ 25.7 billion, respectively.

In February 2026, we repaid in full at maturity our 4.400 % senior unsecured notes in the aggregate principal amount of approximately $ 1.1 billion.

At March 31, 2026 and December 31, 2025, accrued interest on long-term debt of $ 243 million and $ 425 million, respectively, was included in other accrued liabilities on our condensed consolidated balance sheets.

At June 30, 2026 and December 31, 2025, accrued interest on long-term debt of $ 371 million and $ 425 million, respectively, was included in other accrued liabilities on our condensed consolidated balance sheets.

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 5.

Financial Instruments .

The income tax rates for the three months ended March 31, 2026 and 2025 were 23.6 % and 36.0 %, respectively.

The change in the income tax rate was due primarily to the non-deductible impairment of the e-vapor reporting unit goodwill in 2025.

The income tax rates for the six and three months ended June 30, 2026 were 22.6 % and 21.5 %, respectively.

The income tax rates for the six and three months ended June 30, 2025 were 28.0 % and 23.7 %, respectively.

The 5.4 % decrease in the income tax rate for the six months ended June 30, 2026 was due primarily to higher tax expense in 2025 related to the non-deductible impairment of the e-vapor reporting unit goodwill and tax benefits related to the effective settlement with the IRS in May 2026 of our audit for the 2017 tax year.

The 2.2 % decrease in the income tax rate for the three months ended June 30, 2026 was due primarily to tax benefits related to the IRS effective settlement discussed above.

For further discussion of the non-deductible impairment, see Note 2.

Goodwill and Other Intangible Assets, net .

The settlement discussed above excluded our refund claim for the 2017 tax year, based on the Tax Cuts and Jobs Act of 2017’s removal of downward attribution rules relevant to our investment in ABI.

In September 2025, this refund claim was denied, and we are pursuing all available appellate remedies.

Contingencies

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It is possible that our condensed 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 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.

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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:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Pre-tax charges for related interest costs were included in interest and other debt expense, net in our condensed consolidated statements of earnings.

Since October 2004, PM USA has paid judgments and settlements (including related costs and fees) totaling approximately $ 1.2 billion and interest totaling approximately $ 245 million as of March 31, 2026.

These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $ 454 million and related interest totaling approximately $ 62 million.

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To obtain stays of judgments pending appeal, PM USA has posted various forms of security.

As of March 31, 2026, PM USA has posted appeal bonds totaling approximately $ 15 million, which have been collateralized with restricted cash and are included in assets on our condensed consolidated balance sheets.

As of June 30, 2026, PM USA has posted appeal bonds totaling approximately $ 10 million, which have been collateralized with restricted cash and are included in assets on our condensed consolidated balance sheets.

Overview of Tobacco-Related Litigation

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The table below lists the number of certain tobacco-related cases pending in the United States against us as of:

April 27, 2026 April 24, 2025 April 22, 2024

July 27, 2026 July 28, 2025 July 29, 2024

Individual Smoking and Health Cases (1)

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Other Tobacco-Related Cases (3)

(1) Includes as of April 27, 2026, 34 cases filed in Illinois, nine cases filed in New Mexico, 94 cases filed in Massachusetts, 15 cases filed in Oregon, seven cases filed in Hawaii, 11 cases filed in the U.S.

(1) Includes as of July 27, 2026, 41 cases filed in Illinois, eight cases filed in New Mexico, 102 cases filed in Massachusetts, two cases filed in Hawaii, 10 cases filed in the U.S.

Virgin Islands, 50 cases filed in Pennsylvania and nine non- Engle cases filed in Florida.

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(2) 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 April 27, 2026, the remaining cases include 11 individual cases that opted out of the settlement, four class action lawsuits pending in Canada and one individual state court case relating to the Multidistrict Litigation.

Pending final dismissal of these cases, as of July 27, 2026, the remaining cases include 20 individual cases that opted out of the settlement, four class action lawsuits pending in Canada.

For further discussion of the Multidistrict Litigation settlement, see E-vapor Product Litigation below.

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International Tobacco-Related Cases:

As of April 27, 2026, (i) Altria is named as a defendant in four e-vapor class action lawsuits in Canada;

(ii) PM USA is a named defendant in nine health care cost recovery actions in Canada, seven of which also name Altria as a defendant;

and (iii) PM USA and Altria are named as defendants in six smoking and health class actions filed in various Canadian

As of July 27, 2026, Altria is named as a defendant in four e-vapor class action lawsuits in Canada.

In July 2026, the court in one of those lawsuits in British Columbia certified a nationwide class of residents who used and directly or indirectly purchased JUUL e-vapor products in Canada for purposes that were primarily personal starting in August 2018.

The class seeks compensatory and punitive damages for, among other things, personal injuries allegedly suffered from using JUUL e-vapor products.

Altria intends to appeal the class certification order.

PM USA is a named defendant in nine health care cost recovery actions in Canada, seven of which also name Altria as a defendant;

and PM USA and Altria are named as defendants in six smoking and health class actions filed in various Canadian provinces.

See Smoking and Health Litigation - Other Smoking and Health Class Actions below for a discussion of the smoking and health class actions filed in various Canadian Provinces.

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Tobacco-Related Cases Set for Trial:

As of April 27, 2026, one Engle progeny case, no individual smoking and health cases and no e-vapor cases are set for trial through June 30, 2026.

As of July 27, 2026, one Engle progeny case, one individual smoking and health cases and no e-vapor cases are set for trial through September 30, 2026.

Trial dates are subject to change.

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Of the 34 non- Engle progeny cases in which verdicts were returned in favor of plaintiffs, 29 have reached final resolution.

See Smoking and Health Liti gation - Engle Progeny Trial Results below for a discussion of verdicts in state and federal Engle progeny cases involving PM USA as of April 27, 2026.

See Smoking and Health Liti gation - Engle Progeny Trial Results below for a discussion of verdicts in state and federal Engle progeny cases involving PM USA as of July 27, 2026.

Smoking and Health Litigation

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The charts below summarize the verdicts in and post-trial status of certain non-Engle progeny smoking and health cases in which verdicts were returned in favor of plaintiffs.

The first chart lists cases that are pending as of April 27, 2026 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 where PM USA paid a final judgment.

The first chart lists cases that are pending as of July 27, 2026 where PM USA has recorded a provision in its condensed consolidated financial statements because we have determined that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated.

The second chart lists cases that are pending as of July 27, 2026 where PM USA has determined an unfavorable outcome is not probable and the amount of loss cannot be reasonably estimated, and the third chart lists cases that have concluded in the past 12 months where PM USA paid a final judgment.

In this Note 12.

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A chart listing certain verdicts for plaintiffs in pending Engle progeny cases can be found in Smoking and Health Litigation - Engle Progeny Trial Results below.

Currently Pending Non-Engle Cases with Accrued Liabilities

(rounded to nearest $ million)

Plaintiff Verdict Date Defendant(s) State Compensatory Damages (1)

Punitive Damages

(PM USA) Post-Trial Status Accrual (1)

Fontaine September 2022 PM USA MA $ 8 million

The Massachusetts Supreme Judicial Court affirmed the judgment.

PM USA intends to seek review by the U.S.

Supreme Court.

(1) Accrual amounts include interest and associated costs, if applicable.

For any cases with multiple defendants, accrual amounts reflect the portion of compensatory damages PM USA believes it will have to pay if the case is ultimately decided in plaintiff’s favor after taking into account any portion potentially payable by the other defendant.

Currently Pending Non-Engle Cases with Verdicts against PM USA

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In April 2025, the Hawaii Supreme Court granted plaintiff’s application to transfer the appeal to that Court from the Intermediate Court of Appeals.

Fontaine September 2022 PM USA MA $ 8 million

The Massachusetts Supreme Judicial Court affirmed judgment.

(1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies.

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Reynolds Tobacco Co., et.

, 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.

, 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.

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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 April 27, 2026, approximately 44 state court cases were pending against PM USA or Altria.

As of July 27, 2026, approximately 43 state court cases were pending against PM USA or Altria.

Each federal Engle progeny case has been resolved.

Engle Progeny Trial Results:

As of April 27, 2026, 147 federal and state Engle progeny cases involving PM USA have resulted in verdicts.

As of July 27, 2026, 148 federal and state Engle progeny cases involving PM USA have resulted in verdicts.

Eighty-eight were returned in favor of plaintiffs, four of which have been reversed post-trial or on appeal and remain pending.

Fifty-nine verdicts were returned in favor of PM USA, one of which has been reversed post-trial or on appeal and remains pending.

In addition, there have been a number of mistrials, only some of which have resulted in new trials as of April 27, 2026.

Sixty verdicts were returned in favor of PM USA.

In addition, there have been a number of mistrials, only some of which have resulted in new trials as of July 27, 2026.

Post-trial activity in a case can result in a final resolution that differs from the initial verdict.

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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 July 27, 2026 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.

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.

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Appeals to the Third District Court of Appeal pending.

(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 in Past 12 Months

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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 April 27, 2026, PM USA and Altria are named as defendants, along with other cigarette manufacturers, in six class actions filed in the Canadian provinces of Alberta, Manitoba, Nova Scotia, Saskatchewan and British Columbia.

As of July 27, 2026, PM USA and Altria are named as defendants, along with other cigarette manufacturers, in six class actions filed in the Canadian provinces of Alberta, Manitoba, Nova Scotia, Saskatchewan and British Columbia.

In Saskatchewan and British Columbia ( two separate cases), 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.

actions filed in Alberta, Manitoba and Nova Scotia, plaintiffs seek certification of classes of all individuals who smoked 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 ( no ne 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).

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All of these cases were 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.

As discussed above, in August 2025, a plan for those companies was implemented.

discussed above, in August 2025, a plan for those companies was implemented.

See Smoking and Health Litigation - Other Smoking and Health Class Actions above for a discussion of these proceedings.

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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.

For the three months ended March 31, 2026 and 2025, the aggregate amount recorded in cost of sales with respect to the State Settlement Agreements was approximately $ 700 million for each period.

For the six months ended June 30, 2026 and 2025, the aggregate amount recorded in cost of sales with respect to the State Settlement Agreements was approximately $ 1.5 billion for each period.

These amounts include PM USA’s estimate of amounts related to NPM Adjustments discussed below.

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The arbitration encompasses three years, 2005 through 2007, for five of the six states, and one year , 2005, for one state.

As of April 27, 2026, the arbitration panel found the States of Maryland, Wisconsin and Ohio diligent for all three years , the State of Washington not diligent for all three years and the State of Missouri not diligent for 2005.

As of July 27, 2026, the arbitration panel found the States of Maryland, Wisconsin and Ohio diligent for all three years , the State of Washington not diligent for all three years and the State of Missouri not

diligent for 2005.

The State of Washington subsequently settled, as discussed above.

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PM USA recorded an insignificant amount as a reduction in cost of sales in the first quarter of 2026 related to the Missouri finding.

The State of Missouri has challenged the arbitration panel’s determination for 2005 in state court.

▪ Subsequent Years.

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We recorded a pre-tax provision for $ 20 million in the second quarter of 2024 related to the Native American tribes settlement and paid the settlement amount in October 2024.

In the second quarter of 2026, we recorded an additional pre-tax provision for $ 4 million related to the same settlement and paid that amount in July 2026.

Neither settlement applies to four class action lawsuits pending in Canada or 17 putative class action antitrust lawsuits.

For a description of the antitrust cases not subject to the settlement, see Antitrust Litigation below.

For a description of the class action lawsuits pending in Canada and the class action antitrust lawsuits, in each case not subject to the settlement, see International Tobacco-Related Cases above and Antitrust Litigation below, respectively.

E-vapor Patent Litigation

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No damages are recoverable in the proceedings before the ITC.

In January 2025, following an initial determination by the Administrative Law Judge (“ALJ”), the ITC issued its final determination finding that NJOY ACE infringes the four patents plaintiffs asserted and issued an exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE in the United States.

In January 2025, following an initial determination by

the Administrative Law Judge (“ALJ”), the ITC issued its final determination finding that NJOY ACE infringes the four patents plaintiffs asserted and issued an exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE in the United States.

The orders became effective on March 31, 2025.

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In April 2026, the ALJ granted NJOY’s motion for summary determination, finding that the sole patent that forms the basis of JUUL’s action is invalid.

JUUL has petitioned the ITC to review the ALJ’s initial determination.

JUUL petitioned the ITC to review the ALJ’s initial determination, and the ITC granted review in May 2026.

The ITC has not issued its final determination.

In November 2025, Altria, AGDC, ALCS, NJOY Holdings and NJOY sued the ITC and the ALJ in the U.S.

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Altria and our affiliates have moved for summary judgment and a preliminary injunction.

In June 2026, the U.S.

District Court for the Eastern District of Virginia denied the motion for a preliminary injunction, and we have appealed that decision to the U.S.

Court of Appeals for the Fourth Circuit.

Also in November 2025, NJOY Holdings and NJOY filed a petition with PTAB challenging the validity of the patent underlying JUUL’s August 2025 actions.

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A hearing before the ALJ is scheduled for September 2026, and we expect an initial determination from the ALJ in December 2026, subject to the ALJ’s ability to grant himself an extension.

The ALJ’s recommendation will be reviewed by the ITC, and we expect the ITC’s final determination in April 2027, subject to the ITC’s right to grant itself an extension.

The ALJ’s recommendation will be reviewed by the ITC, and we expect the ITC’s final determination in April 2027, subject to the ITC’s ability to grant itself an extension.

Reynolds Patent Litigation:

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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.

Court of Appeals for the Federal Circuit, which affirmed the

judgment in December 2024.

In August 2025, R.J.

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In March 2023, we entered into a stock transfer agreement with JUUL pursuant to which, among other things, we transferred to JUUL all of our beneficially owned JUUL equity securities.

As of April 27, 2026, 17 putative class action lawsuits have been filed against Altria and JUUL in the U.S.

As of July 27, 2026, 17 putative class action lawsuits have been filed against Altria and JUUL in the U.S.

District Court for the Northern District of California.

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In March 2026, Altria and JUUL filed a petition with the Ninth Circuit Court of Appeals seeking discretionary review of the class certification decision, which the court granted in April 2026.

The trial with respect to the remaining claims in the consolidated lawsuits currently is set to commence in September 2026.

The trial with respect to the remaining claims in the consolidated lawsuits will not occur earlier than five months after the Ninth Circuit issues its decision.

Certain Other Tobacco-Related Litigation

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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 April 27, 2026, two “Lights/Ultra Lights” class actions are pending in U.S.

As of July 27, 2026, two “Lights/Ultra Lights” class actions are pending in U.S.

state courts.

Neither case is active.

As of April 27, 2026, 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.

As of July 27, 2026, 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 environmental tobacco smoke and purporting to be brought on behalf of a class of individual plaintiffs, is pending in a U.S.

The case is currently inactive.

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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 condensed consolidated results of operations, capital expenditures, financial position or cash flows.

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 condensed consolidated results of operations, capital expenditures, financial position or cash flows.

Guarantees and Other Similar Matters

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Additionally, we provide certain guarantees to a limited number of third parties related to contractual obligations.

At March 31, 2026, we had $ 43 million of unused letters of credit obtained in the ordinary course of business.

At June 30, 2026, we had $ 43 million of unused letters of credit obtained in the ordinary course of business.

These items have not had, and are not expected to have, a significant impact on our liquidity.

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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 condensed consolidated balance sheet at March 31, 2026 as the fair value of this indemnification is insignificant.

We do not have a related liability recorded on our condensed consolidated balance sheet at June 30, 2026 as the fair value of this indemnification is insignificant.

As part of our supplier financing program, Altria guarantees the financial obligations of ALCS under the financing program agreement.

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In January 2025, our Board of Directors (“Board” or “Board of Directors”) authorized a $ 1.0 billion share repurchase program that it expanded to $ 2.0 billion in October 2025.

At March 31, 2026, we had $ 720 million remaining under this program, which expires on December 31, 2026.

At June 30, 2026, we had $ 665 million remaining under this program, which expires on December 31, 2026.

Share repurchases depend on marketplace conditions and other factors, and the program remains subject to the discretion of our Board.

Our share repurchase activity was as follows:

For the Three Months Ended March 31,

For the Six Months Ended June 30, For the Three Months Ended June 30,

(in millions, except per share data) 2026

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A reconciliation of cash, cash equivalents and restricted cash on our condensed consolidated balance sheets to the amounts reported in our condensed consolidated statements of cash flows is as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 2,367 $ 4,474

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We record receivables net of the cash discounts on our condensed consolidated balance sheets.

At March 31, 2026, December 31, 2025 and December 31, 2024, receivables were $ 284 million, $ 263 million and $ 177 million, respectively.

At June 30, 2026, December 31, 2025 and December 31, 2024, receivables were $ 306 million, $ 263 million and $ 177 million, respectively.

Deferred Revenue

We record deferred revenue when our businesses receive payment in advance of product shipment, which we include in other accrued liabilities on our condensed consolidated balance sheets until revenue is recognized, and our companies typically satisfy their performance obligations within three days of receiving payment.

At March 31, 2026, December 31, 2025 and December 31, 2024, deferred revenue was $ 169 million, $ 231 million and $ 215 million, respectively.

At March 31, 2026, December 31, 2025 and December 31, 2024, there were no differences between amounts recorded as deferred revenue from contracts with customers and amounts subsequently recognized as revenue.

At June 30, 2026, December 31, 2025 and December 31, 2024, deferred revenue was $ 145 million, $ 231 million and $ 215 million, respectively.

At June 30, 2026, December 31, 2025 and December 31, 2024, there were no differences between amounts recorded as deferred revenue from contracts with customers and amounts subsequently recognized as revenue.

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.

At March 31, 2026 and December 31, 2025, confirmed outstanding obligations under the supplier financing program, which are recorded in accounts payable on our condensed consolidated balance sheets, were $ 157 million and $ 159 million, respectively.

At June 30, 2026 and December 31, 2025, confirmed outstanding obligations under the supplier financing program, which are recorded in accounts payable on our condensed consolidated balance sheets, were $ 171 million and $ 159 million, respectively.

New Accounting Guidance Not Yet Adopted

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We are in the process of evaluating the impact of this guidance on our consolidated financial statements and related disclosures.

Standards Description Effective Date for Public Entity Effect on Financial Statements

2025-07 Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606):

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements