The company entered into accelerated share repurchase agreements to repurchase an aggregate of $2.4 billion of common stock, funded by proceeds from the sale of a portion of its investment in ABI.

The company continues to invest in smoke-free products, including oral nicotine pouches and e-vapor products, as part of its strategy to transition adult smokers to potentially less harmful alternatives.

The acquisition of NJOY Holdings was completed in June 2023, providing the company with full global ownership of NJOY's e-vapor product portfolio.

Operating income decreased to $2.674 billion, down from $2.757 billion in the same period last year, due primarily to lower operating results in the smokeable products segment.

The company is actively managing costs, as evidenced by a decrease in marketing, administration and research costs, partially offset by higher per unit settlement charges and higher manufacturing costs.

Management continues to allocate resources towards the development and marketing of smoke-free products, aligning with its long-term vision.

The company continues to face a wide range of legal proceedings and regulatory challenges, including product liability, unfair trade practices, antitrust, and intellectual property litigation, as well as potential new regulations.

The company acknowledges that illicit trade in tobacco products, including counterfeit and unregulated products, can have an adverse impact on its business.

The company notes that macroeconomic conditions, such as inflation, and geopolitical instability may continue to cause disruptions in supply chains and commercial markets, impacting costs and availability of materials.

Marlboro's market share in the cigarette category remained stable year-over-year at 42.0%, despite increased competition and the growth of discount brands.

The U.S. nicotine pouch category grew significantly to 40.1% of the total oral tobacco category, with on! maintaining a 7.1% share of the total oral tobacco category.

The company notes the increase in illegal disposable e-vapor products, which is impacting the e-vapor market and contributing to higher cigarette industry volume declines.

Cost of sales was essentially unchanged year-over-year, as higher per unit settlement charges and higher manufacturing costs were offset by lower shipment volume in the smokeable products segment.

Marketing, administration and research costs increased by $34 million, primarily due to transaction costs from the ABI Transaction and higher project spending, partially offset by lower litigation charges.

The company continues to implement strategies to mitigate supply chain disruptions, including proactive engagement with suppliers and development of alternative sourcing strategies.

The company continues to invest in research and development for new product platforms and technologies, with a focus on smoke-free alternatives.

The company is focused on developing and marketing e-vapor products, including NJOY ACE and NJOY DAILY, to meet evolving consumer preferences.

The company is involved in various intellectual property disputes, including patent infringement lawsuits related to e-vapor products.

The company accelerated its share repurchase program, using proceeds from the sale of a portion of its ABI investment to repurchase $2.4 billion of common stock.

The company paid $1.733 billion in dividends, up from $1.683 billion in the same period last year, reflecting a higher dividend rate.

The company continues to prioritize investments in smoke-free product development and marketing, aligning with its long-term growth strategy.

The company continues to emphasize its commitment to responsible business practices, including efforts to reduce underage use of tobacco products.

The company's strategy is to transition adult smokers to potentially less harmful alternatives, aligning with harm reduction principles.

The company actively engages with regulators and other stakeholders to develop and implement responsible tobacco regulations.

The company notes that macroeconomic conditions, such as inflation, are influencing adult tobacco consumer purchasing behavior, including shifts to discount brands.

The company continues to monitor and adapt to a complex and evolving regulatory landscape, including potential new product standards and restrictions on marketing and sales.

The company acknowledges the growth of illicit trade in tobacco products, including counterfeit and unregulated products, as a challenge to the industry.