“You started to see that in the fourth quarter of last year. That will continue. So on a comparative basis, you will see that benefit in the first three quarters of this year.”

In context

“gal because of the way the statute was written. It's certainly the indications with the activities from the FDA. It appears they're using enforcement discretion in enforcing against those products. So it certainly moved synthetic nicotine up on our radar, and so we're looking at all available opportunities to assess what the right move in that direction. Faham Baig: Thanks. And maybe the third question is for Sal. The settlement payments in the quarter were down about 20% or $170 million. Anything that you would call out on the drivers behind this and any phasing that may be behind the payments this year? Sal Mancuso: Yes. Remember, there's a lot of variables that go into the calculation of the MSA and settlement payments. I would point out that there was the expiration of the legal fund. You started to see that in the fourth quarter of last year. That will continue. So on a comparative basis, you will see that benefit in the first three quarters of this year. Faham Baig: Perfect. Thank you, guys. Billy Gifford: Thank you. Operator: And once again, if you would like to ask a question, we'll take our next question from Emma Rumney with Reuters. Please go ahead. Your line is open. Emma Rumney: Thank you for taking my question. Well, I have a few, if that's all right. The first one is on the tariffs and whether you can see any kind of discernible impact on consumer sentiment in the U.S. as a result of the tariffs and the uncertainty surrounding tariffs? Any color you have on that would be great. Sal Mancuso: Sure. Good morning. So as I said in my opening remarks, our guidance does consider the impact of tariffs. Remember, we are predominantly a U.S. company with a U.S.-focused supply chain. So while certain materials may be impacted, for example,”