\n| \n Adjusted diluted EPS<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.32<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 1.23<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 7.3<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Note: For details of pre-tax, tax and after-tax amounts, see Schedule 5.<\/i><\/p>\n Special Items<\/b><\/p>\n The EPS impact of the following special items is shown in Table 1 and Schedules 4 and 5.<\/i><\/p>\n Acquisition-Related Items<\/i><\/b><\/p>\n \nIn the first quarter of 2025, we recorded net pre-tax expense items of $79 million (or $0.04 per share), including $54 million related to the U.S. International Trade Commission\u2019s (ITC) exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE<\/i> in the United States. The expenses related to the ITC orders were partially offset by insurance recoveries from insurance contracts associated with the acquisition of NJOY. Also included is a 2025 non-cash, pre-tax charge of $25 million related to a change in the fair value of the contingent payments associated with the acquisition of NJOY.<\/p>\n Asset Impairment, Exit and Implementation Costs<\/i><\/b><\/p>\n \nIn the first quarter of 2025, we recorded a non-cash impairment charge of $873 million (or $0.52 per share) to the e-vapor reporting unit goodwill in our all other category.<\/p>\n Tobacco and Health and Certain Other Litigation Items<\/i><\/b><\/p>\n \nIn the first quarter of 2025, we recorded pre-tax charges of $40 million (or $0.02 per share) for tobacco and health and certain other litigation items and related interest costs.<\/p>\n Amortization of Intangibles<\/i><\/b><\/p>\n \nIn the first quarter of 2025, we recorded pre-tax amortization expense of definite-lived intangible assets of $37 million (or $0.02 per share).<\/p>\n SMOKEABLE PRODUCTS<\/b><\/p>\n Revenues and OCI<\/b><\/p>\n\n- \nNet revenues increased 2.9%, primarily driven by higher pricing, partially offset by higher promotional investments, lower shipment volume and a higher percentage of discount shipment volume relative to premium versus the prior year (volume mix change). Revenues net of excise taxes increased 5.2%.<\/p>\n<\/li>\n
- \nReported OCI increased 8.3%, primarily driven by higher pricing, 2026 refunds of taxes and duties paid on imported cigarettes and lower tobacco and health and certain other litigation items, partially offset by higher promotional investments, lower shipment volume, volume mix change and higher manufacturing costs.<\/p>\n<\/li>\n
- \nAdjusted OCI increased 6.3%, primarily driven by higher pricing and 2026 refunds of taxes and duties paid on imported cigarettes, partially offset by higher promotional investments, lower shipment volume, volume mix change and higher manufacturing costs. Adjusted OCI margins increased by 0.7 percentage points to 65.1%.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 2 – Smokeable Products: Revenues and OCI ($ in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net revenues<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,758<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,622<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2.9%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nExcise taxes<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(648<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(715<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Revenues net of excise taxes<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 4,110<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 3,907<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 5.2%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Reported OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,673<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,469<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 8.3%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNPM Adjustment Items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(4<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u2014<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAsset impairment, exit and implementation costs<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n13<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTobacco and health and certain other litigation items<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n36<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,676<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 2,518<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6.3%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Reported OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 65.0<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 63.2<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n 1.8 pp<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 65.1<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 64.4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \n 0.7 pp<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1<\/sup><\/i>Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.<\/i><\/p>\nShipment Volume<\/b><\/p>\n\n- \nSmokeable products segment reported domestic cigarette shipment volume decreased 2.4%, primarily driven by the industry\u2019s decline rate (impacted by continued discretionary income pressures on ANCs), partially offset by trade inventory movements and retail share gains.<\/p>\n<\/li>\n
- \nWhen adjusted for trade inventory movements, smokeable products segment domestic cigarette shipment volume decreased by an estimated 4%.<\/p>\n<\/li>\n
- \nWhen adjusted for trade inventory movements, total domestic cigarette industry volume decreased by an estimated 5%.<\/p>\n<\/li>\n
- \nReported cigar shipment volume decreased 0.2%.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 3 – Smokeable Products: Reported Shipment Volume (sticks in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Cigarettes:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Marlboro<\/i><\/b><\/p>\n<\/td>\n | | \n\n \n11,960<\/p>\n<\/td>\n | | \n\n \n12,978<\/p>\n<\/td>\n | | \n\n \n(7.8)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Other premium<\/b><\/p>\n<\/td>\n | | \n\n \n601<\/p>\n<\/td>\n | | \n\n \n678<\/p>\n<\/td>\n | | \n\n \n(11.4)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Discount<\/b><\/p>\n<\/td>\n | | \n\n \n1,306<\/p>\n<\/td>\n | | \n\n \n548<\/p>\n<\/td>\n | | \n\n \n100%+<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total domestic cigarettes 1<\/sup><\/b><\/p>\n<\/td>\n | \n\n 13,867<\/b><\/p>\n<\/td>\n | | \n\n 14,204<\/b><\/p>\n<\/td>\n | | \n\n (2.4)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Cigars:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Black & Mild<\/i><\/b><\/p>\n<\/td>\n | | \n\n \n403<\/p>\n<\/td>\n | | \n\n \n405<\/p>\n<\/td>\n | | \n\n \n(0.5)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Other<\/b><\/p>\n<\/td>\n | | \n\n \n1<\/p>\n<\/td>\n | | \n\n \n\u2014<\/p>\n<\/td>\n | | \n\n \n100%+<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total cigars<\/b><\/p>\n<\/td>\n | | \n\n 404<\/b><\/p>\n<\/td>\n | | \n\n 405<\/b><\/p>\n<\/td>\n | | \n\n (0.2)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total domestic smokeable products<\/b><\/p>\n<\/td>\n | | \n\n 14,271<\/b><\/p>\n<\/td>\n | | \n\n 14,609<\/b><\/p>\n<\/td>\n | | \n\n (2.3)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Contract manufactured export cigarettes 2<\/sup><\/b><\/p>\n<\/td>\n | \n\n 610<\/b><\/p>\n<\/td>\n | | \n\n \u2014<\/b><\/p>\n<\/td>\n | | \n\n 100%+<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1<\/sup> Domestic cigarettes shipment volume includes Marlboro; Other premium brands, such as Virginia Slims and Parliament; and Discount brands, which include L&M and Basic. Domestic cigarettes volume includes units sold as well as promotional units sold for distribution in the U.S. and 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.<\/i><\/p>\n2 <\/sup>Contract manufactured export cigarettes shipment volume represents contract manufactured cigarettes for third parties that market and sell tobacco products outside the U.S.<\/i><\/p>\nRetail Share and Brand Activity<\/b><\/p>\n\n- Marlboro<\/i> retail share of the total cigarette category was 39.7%, a decrease of 1.4 share points versus the prior year and 0.1 share point sequentially. Marlboro<\/i> share of the premium segment was 59.5%, an increase of 0.1 share point versus the prior year and 0.2 share points sequentially.\n<\/li>\n
- \nThe cigarette industry discount retail share was 33.3%, an increase of 2.4 share points versus the prior year and 0.5 share points sequentially, primarily due to continued discretionary income pressures on ANCs.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 4 – Smokeable Products: Domestic Cigarettes Retail Share (percent)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Percentage
\n
point
\n
change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Cigarettes:<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Marlboro<\/i><\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n39.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n41.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(1.4)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Other premium<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(0.1)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Discount<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n3.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n1.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n1.9<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total cigarettes<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 45.4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 45.0<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 0.4<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Note: Retail share results for cigarettes are based on data from Circana, LLC (Circana) as well as 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 (STARS), as provided by MSAi. This service is not designed to capture sales through other channels, including the internet, direct mail and some 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.<\/i><\/p>\n ORAL TOBACCO PRODUCTS<\/b><\/p>\n Revenues and OCI<\/b><\/p>\n\n- \nNet revenues increased 2.3%, driven by higher pricing, partially offset by lower shipment volume, higher promotional investments and a higher percentage of on! <\/i>shipment volume relative to MST versus the prior year (product mix change). Revenues net of excise taxes increased 2.9%.<\/p>\n<\/li>\n
- \nReported and adjusted OCI increased 0.5% and 0.2%, respectively, driven by higher pricing, partially offset by lower shipment volume, higher costs, higher promotional investments and product mix change. Adjusted OCI margins decreased 1.8 percentage points to 67.4%.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 5 – Oral Tobacco Products: Revenues and OCI ($ in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net revenues<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 669<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 654<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 2.3<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nExcise taxes<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(22<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(25<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Revenues net of excise taxes<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 647<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 629<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 2.9<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Reported OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 435<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 433<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 0.5<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAsset impairment, exit and implementation costs<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted OCI<\/b><\/p>\n<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 436<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 435<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 0.2<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Reported OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 67.2<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 68.8<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n (1.6) pp<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted OCI margins 1<\/sup><\/b><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 67.4<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 69.2<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n (1.8) pp<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1<\/sup> Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.<\/i><\/p>\nShipment Volume<\/b><\/p>\n\n- \nOral tobacco products segment reported domestic shipment volume decreased 3.1%,primarily driven by retail share losses, partially offset by the industry\u2019s growth rate and trade inventory movements. When adjusted for trade inventory movements, oral tobacco products segment shipment volume decreased by an estimated 8.5%.<\/p>\n<\/li>\n
- \nTotal oral industry volume increased by an estimated 9.5% for the six months ended March 31, 2026, primarily driven by growth in oral nicotine pouches, partially offset by declines in MST volumes.<\/p>\n<\/li>\n<\/ul>\n
\n\n| \n Table 6 – Oral Tobacco Products: Reported Shipment Volume (cans in millions)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | \n | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n | \n\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |