PMCC Leveraged Lease (Benefit) ChargeComparisons of Altria's full-year reported diluted EPS were also impacted by benefits and charges related to the tax treatment of certain leveraged lease transactions entered into by PMCC (referred to by the Internal Revenue Service (IRS) as lease-in/lease-out (LILO) and sale-in/lease-out (SILO) transactions). For the full year of 2012, Altria recorded a net earnings benefit of $68 million primarily due to lower than estimated interest expense on tax underpayments as a result of the previously announced closing agreement with the IRS related to PMCC's LILO and SILO transactions. This 2012 full-year EPS benefit is shown in Table 2 and Schedule 7. The net benefit was recorded as a decrease of $75 million to the provision for income taxes and is reflected in Schedule 3, "Provision for income taxes." This benefit was partially offset by a reduction to cumulative lease earnings of $7 million against the financial services segment's net revenues as shown in Schedule 4. For the full year of 2011, Altria's reported diluted EPS was impacted by a charge of $627 million related to PMCC's LILO and SILO transactions. The EPS impact of the charge is shown in Table 2 and Schedule 7. The charge was recorded as a reduction to cumulative lease earnings of $490 million against the financial services segment's net revenues, which is reflected in Schedule 4, and a net increase of $137 million to the provision for income taxes, as reflected in Schedule 3, "Provision for income taxes." Tobacco and Health Judgments Comparisons of Altria's fourth-quarter and full-year reported diluted EPS were also impacted by charges related to tobacco and health judgments. For the fourth quarter of 2011, PM USA incurred pre-tax charges of $62 million related to tobacco and health judgments as well as related interest costs of $59 million. These charges, excluding the related interest costs, are reflected in Schedule 2, and the EPS impact of these charges, including interest costs, is reflected in Table 2 and in Schedule 6. The interest costs are reflected in Schedule 1, "Interest and other debt expense, net."