Philip Morris plans to buy back some of its stock.

The New York-based firm said it planned to spend $1 billion to buy back up to 4.2% of its common shares outstanding. The diversified food and tobacco giant stated that it would buy back up to 10 million of its 238 million common shares outstanding from time to time in the open market or in private transactions. Philip Morris indicated that the reacquired shares would become company treasury shares, which might be reissued under employee benefit plans or used for other corporate purposes.