Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33708 | ||
Entity Registrant Name | PHILIP MORRIS INTERNATIONAL INC. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 13-3435103 | ||
Entity Address, Address Line One | 120 Park Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10017 | ||
City Area Code | 917 | ||
Local Phone Number | 663-2000 | ||
Title of 12(g) Security | None | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 109 | ||
Entity Common Stock, Shares Outstanding | 1,557,451,856 | ||
Documents Incorporated by Reference | Document Parts Into Which Incorporated Portions of the registrant’s definitive proxy statement for use in connection with its annual meeting of shareholders to be held on May 5, 2021, to be filed with the Securities and Exchange Commission (“SEC”) on or about March 25, 2021. Part III | ||
Entity Central Index Key | 0001413329 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | PM | ||
Security Exchange Name | NYSE | ||
1.875% Notes due 2021 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.875% Notes due 2021 | ||
Trading Symbol | PM21B | ||
Security Exchange Name | NYSE | ||
4.125% Notes due 2021 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.125% Notes due 2021 | ||
Trading Symbol | PM21 | ||
Security Exchange Name | NYSE | ||
2.900% Notes due 2021 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.900% Notes due 2021 | ||
Trading Symbol | PM21A | ||
Security Exchange Name | NYSE | ||
2.625% Notes due 2022 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.625% Notes due 2022 | ||
Trading Symbol | PM22A | ||
Security Exchange Name | NYSE | ||
2.375% Notes due 2022 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.375% Notes due 2022 | ||
Trading Symbol | PM22B | ||
Security Exchange Name | NYSE | ||
2.500% Notes due 2022 - 1 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.500% Notes due 2022 | ||
Trading Symbol | PM22 | ||
Security Exchange Name | NYSE | ||
2.500% Notes due 2022 - 2 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.500% Notes due 2022 | ||
Trading Symbol | PM22C | ||
Security Exchange Name | NYSE | ||
2.625% Notes due 2023 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.625% Notes due 2023 | ||
Trading Symbol | PM23 | ||
Security Exchange Name | NYSE | ||
2.125% Notes due 2023 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.125% Notes due 2023 | ||
Trading Symbol | PM23B | ||
Security Exchange Name | NYSE | ||
3.600% Notes due 2023 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.600% Notes due 2023 | ||
Trading Symbol | PM23A | ||
Security Exchange Name | NYSE | ||
2.875% Notes due 2024 - 1 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.875% Notes due 2024 | ||
Trading Symbol | PM24 | ||
Security Exchange Name | NYSE | ||
2.875% Notes due 2024 - 2 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.875% Notes due 2024 | ||
Trading Symbol | PM24C | ||
Security Exchange Name | NYSE | ||
0.625% Notes due 2024 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.625% Notes due 2024 | ||
Trading Symbol | PM24B | ||
Security Exchange Name | NYSE | ||
3.250% Notes due 2024 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.250% Notes due 2024 | ||
Trading Symbol | PM24A | ||
Security Exchange Name | NYSE | ||
2.750% Notes due 2025 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.750% Notes due 2025 | ||
Trading Symbol | PM25 | ||
Security Exchange Name | NYSE | ||
3.375% Notes due 2025 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.375% Notes due 2025 | ||
Trading Symbol | PM25A | ||
Security Exchange Name | NYSE | ||
2.750% Notes due 2026 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.750% Notes due 2026 | ||
Trading Symbol | PM26A | ||
Security Exchange Name | NYSE | ||
2.875% Notes due 2026 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.875% Notes due 2026 | ||
Trading Symbol | PM26 | ||
Security Exchange Name | NYSE | ||
0.125% Notes due 2026 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.125% Notes due 2026 | ||
Trading Symbol | PM26B | ||
Security Exchange Name | NYSE | ||
3.125% Notes due 2027 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.125% Notes due 2027 | ||
Trading Symbol | PM27 | ||
Security Exchange Name | NYSE | ||
3.125% Notes due 2028 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.125% Notes due 2028 | ||
Trading Symbol | PM28 | ||
Security Exchange Name | NYSE | ||
2.875% Notes due 2029 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.875% Notes due 2029 | ||
Trading Symbol | PM29 | ||
Security Exchange Name | NYSE | ||
3.375% Notes due 2029 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.375% Notes due 2029 | ||
Trading Symbol | PM29A | ||
Security Exchange Name | NYSE | ||
0.800% Notes due 2031 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.800% Notes due 2031 | ||
Trading Symbol | PM31 | ||
Security Exchange Name | NYSE | ||
3.125% Notes due 2033 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.125% Notes due 2033 | ||
Trading Symbol | PM33 | ||
Security Exchange Name | NYSE | ||
2.000% Notes due 2036 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.000% Notes due 2036 | ||
Trading Symbol | PM36 | ||
Security Exchange Name | NYSE | ||
1.875% Notes due 2037 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.875% Notes due 2037 | ||
Trading Symbol | PM37A | ||
Security Exchange Name | NYSE | ||
6.375% Notes due 2038 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.375% Notes due 2038 | ||
Trading Symbol | PM38 | ||
Security Exchange Name | NYSE | ||
1.450% Notes due 2039 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.450% Notes due 2039 | ||
Trading Symbol | PM39 | ||
Security Exchange Name | NYSE | ||
4.375% Notes due 2041 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.375% Notes due 2041 | ||
Trading Symbol | PM41 | ||
Security Exchange Name | NYSE | ||
4.500% Notes due 2042 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.500% Notes due 2042 | ||
Trading Symbol | PM42 | ||
Security Exchange Name | NYSE | ||
3.875% Notes due 2042 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 3.875% Notes due 2042 | ||
Trading Symbol | PM42A | ||
Security Exchange Name | NYSE | ||
4.125% Notes due 2043 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.125% Notes due 2043 | ||
Trading Symbol | PM43 | ||
Security Exchange Name | NYSE | ||
4.875% Notes due 2043 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.875% Notes due 2043 | ||
Trading Symbol | PM43A | ||
Security Exchange Name | NYSE | ||
4.250% Notes due 2044 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.250% Notes due 2044 | ||
Trading Symbol | PM44 | ||
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues including excise taxes | $ 76,047 | $ 77,921 | $ 79,823 |
Excise taxes on products | 47,353 | 48,116 | 50,198 |
Net revenues | 28,694 | 29,805 | 29,625 |
Cost of sales | 9,569 | 10,513 | 10,758 |
Gross profit | 19,125 | 19,292 | 18,867 |
Marketing, administration and research costs (Notes 12, 17, 19 & 20) | 7,384 | 8,695 | 7,408 |
Amortization of intangibles | 73 | 66 | 82 |
Operating income | 11,668 | 10,531 | 11,377 |
Interest expense, net (Note 14) | 618 | 570 | 665 |
Pension and other employee benefit costs (Note 13) | 97 | 89 | 41 |
Earnings before income taxes | 10,953 | 9,872 | 10,671 |
Provision for income taxes (Note 11) | 2,377 | 2,293 | 2,445 |
Equity investments and securities (income)/loss, net | (16) | (149) | (60) |
Net earnings | 8,592 | 7,728 | 8,286 |
Net earnings attributable to noncontrolling interests | 536 | 543 | 375 |
Net earnings attributable to PMI | $ 8,056 | $ 7,185 | $ 7,911 |
Per share data (Note 10): | |||
Basic earnings per share (in dollars per share) | $ 5.16 | $ 4.61 | $ 5.08 |
Diluted earnings per share (in dollars per share) | $ 5.16 | $ 4.61 | $ 5.08 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net earnings | $ 8,592 | $ 7,728 | $ 8,286 |
Change in currency translation adjustments: | |||
Unrealized gains (losses), net of income taxes | (1,265) | 505 | (812) |
Change in net loss and prior service cost: | |||
Net gains (losses) and prior service costs, net of income taxes | (726) | (454) | (1,046) |
Amortization of net losses, prior service costs and net transition costs, and (Gains) losses transferred to earnings - deconsolidation of RBH, net of income taxes | 299 | 243 | 218 |
Change in fair value of derivatives accounted for as hedges: | |||
Gains (losses) recognized, net of income taxes | (68) | (18) | 24 |
(Gains) losses transferred to earnings, net of income taxes | (20) | (14) | (31) |
Total other comprehensive earnings (losses) | (1,780) | 791 | (1,647) |
Total comprehensive earnings | 6,812 | 8,519 | 6,639 |
Less comprehensive earnings attributable to: | |||
Noncontrolling interests | 574 | 586 | 304 |
Comprehensive earnings attributable to PMI | 6,238 | 7,933 | 6,335 |
Deconsolidation of RBH [Member] | |||
Change in currency translation adjustments: | |||
(Gains)/losses transferred to earnings, net of income taxes | 0 | 502 | 0 |
Change in net loss and prior service cost: | |||
Amortization of net losses, prior service costs and net transition costs, and (Gains) losses transferred to earnings - deconsolidation of RBH, net of income taxes | $ 0 | $ 27 | $ 0 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes on currency translation adjustments in earnings | $ 94 | $ (161) | $ (47) |
Income taxes on net losses and prior service costs | 139 | 247 | 65 |
Income taxes on (gains)losses transferred to earnings relating to change in net loss and prior service cost | (67) | (69) | (43) |
Income taxes on gain/(loss) recognized from fair value of derivatives accounted for as hedges | 13 | 2 | (4) |
Income taxes on loss/(gain) transferred to earnings from fair value of derivatives accounted for as hedges | 0 | 3 | 5 |
Deconsolidation of RBH [Member] | |||
Income taxes on currency translation adjustments in earnings | 0 | 0 | 0 |
Income taxes on (gains)losses transferred to earnings relating to change in net loss and prior service cost | $ 0 | $ (15) | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 7,280 | $ 6,861 |
Trade receivables (less allowances of $23 in 2020 and $20 in 2019) | 2,905 | 3,080 |
Other receivables (less allowances of $38 in 2020 and $35 in 2019) | 856 | 637 |
Inventories: | ||
Leaf tobacco | 2,063 | 2,052 |
Other raw materials | 1,712 | 1,596 |
Finished product | 5,816 | 5,587 |
Total inventory, net | 9,591 | 9,235 |
Other current assets | 860 | 701 |
Total current assets | 21,492 | 20,514 |
Property, plant and equipment, at cost: | ||
Land and land improvements | 590 | 566 |
Buildings and building equipment | 4,410 | 4,132 |
Machinery and equipment | 9,460 | 9,354 |
Construction in progress | 449 | 394 |
Total property, plant and equipment, at cost | 14,909 | 14,446 |
Less: accumulated depreciation | 8,544 | 7,815 |
Total property, plant and equipment, net | 6,365 | 6,631 |
Goodwill (Note 3) | 5,964 | 5,858 |
Other intangible assets, net (Note 3) | 2,019 | 2,113 |
Equity investments (Note 4) | 4,798 | 4,635 |
Deferred income taxes | 1,410 | 1,153 |
Other assets (less allowances of $22 in 2020 and $15 in 2019) | 2,767 | 1,971 |
Total Assets | 44,815 | 42,875 |
Liabilities | ||
Short-term borrowings (Note 7) | 244 | 338 |
Current portion of long-term debt (Note 7) | 3,124 | 4,051 |
Accounts payable | 2,780 | 2,299 |
Accrued liabilities: | ||
Marketing and selling | 782 | 666 |
Taxes, except income taxes | 6,403 | 5,837 |
Employment costs | 1,189 | 1,042 |
Dividends payable | 1,880 | 1,831 |
Other | 2,122 | 1,973 |
Income taxes (Note 11) | 1,091 | 796 |
Total current liabilities | 19,615 | 18,833 |
Long-term debt (Note 7) | 28,168 | 26,656 |
Deferred income taxes | 684 | 908 |
Employment costs | 4,470 | 3,634 |
Income taxes and other liabilities (Note 11) | 2,509 | 2,443 |
Total liabilities | 55,446 | 52,474 |
Contingencies (Note 17) | ||
Stockholders’ (Deficit) Equity | ||
Common stock, no par value (2,109,316,331 shares issued in 2020 and 2019) | 0 | 0 |
Additional paid-in capital | 2,105 | 2,019 |
Earnings reinvested in the business | 31,638 | 30,987 |
Accumulated other comprehensive losses | (11,181) | (9,363) |
Total stockholders' equity before treasury stock | 22,562 | 23,643 |
Less: cost of repurchased stock (551,942,600 and 553,421,668 shares in 2020 and 2019, respectively) | 35,129 | 35,220 |
Total PMI stockholders’ deficit | (12,567) | (11,577) |
Noncontrolling interests | 1,936 | 1,978 |
Total stockholders’ deficit | (10,631) | (9,599) |
Total Liabilities and Stockholders’ (Deficit) Equity | $ 44,815 | $ 42,875 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 23 | $ 20 |
Other receivables, allowances | 38 | 35 |
Other assets, noncurrent, allowances for long-term receivables | $ 22 | $ 15 |
Common stock, shares issued (in shares) | 2,109,316,331 | 2,109,316,331 |
Repurchased stock, shares (in shares) | 551,942,600 | 553,421,668 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||||
Net earnings | $ 8,592 | $ 7,728 | $ 8,286 | ||
Adjustments to reconcile net earnings to operating cash flows: | |||||
Depreciation and amortization | 981 | 964 | 989 | ||
Deferred income tax (benefit) provision | (143) | (141) | (100) | ||
Asset impairment and exit costs, net of cash paid (Note 19) | (14) | 371 | (3) | ||
Cash effects of changes in: | |||||
Receivables, net | 26 | (331) | 53 | ||
Inventories | (165) | (548) | (613) | ||
Accounts payable | 406 | 451 | (51) | ||
Accrued liabilities and other current assets | 121 | 1,108 | 910 | ||
Income taxes | (260) | 75 | (135) | ||
Pension plan contributions | (102) | (200) | (110) | ||
Other | 370 | 613 | [1] | 252 | |
Net cash provided by operating activities | 9,812 | 10,090 | 9,478 | ||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | |||||
Capital expenditures | (602) | (852) | (1,436) | ||
Equity investments | (47) | (31) | (63) | ||
Deconsolidation of RBH (Note 20) | 0 | (1,346) | [2] | 0 | |
Net investment hedges | (551) | 386 | 416 | ||
Other | 46 | 32 | 85 | ||
Net cash used in investing activities | (1,154) | (1,811) | (998) | ||
Short-term borrowing activity by original maturity: | |||||
Net issuances (repayments) - maturities of 90 days or less | (70) | (364) | 255 | ||
Issuances - maturities longer than 90 days | 45 | 989 | 0 | ||
Repayments - maturities longer than 90 days | (45) | (989) | 0 | ||
Long-term debt proceeds | 3,713 | 3,819 | 0 | ||
Long-term debt repaid | (3,999) | (3,998) | (2,484) | ||
Dividends paid | (7,364) | (7,161) | (6,885) | ||
Payments to noncontrolling interests and Other | (776) | (357) | (537) | ||
Net cash used in financing activities | (8,496) | (8,061) | (9,651) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 258 | 27 | (685) | ||
Cash, cash equivalents and restricted cash: | |||||
Increase (Decrease) | [3] | 420 | 245 | (1,856) | |
Balance at beginning of year | [3] | 6,865 | 6,620 | 8,476 | |
Balance at end of year | [3] | 7,285 | 6,865 | 6,620 | |
Cash Paid: | |||||
Interest | 728 | 800 | 882 | ||
Income taxes | $ 2,785 | $ 2,430 | $ 2,749 | ||
[1] | Includes the Loss on Deconsolidation of RBH ($239 million) and the Canadian tobacco litigation-related charge ($194 million) that were included in marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2019. For further details on these charges, see Note 20. Deconsolidation of RBH . | ||||
[2] | Includes deconsolidation of RBH cash and cash equivalents of $1,323 million and restricted cash of $23 million. | ||||
[3] | The amounts for cash and cash equivalents shown above include restricted cash of $5 million, $4 million and $27 million as of December 31, 2020, 2019 and 2018, respectively, which were included in other current assets in the consolidated balance sheets. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash divested from deconsolidation | $ 0 | $ 1,346 | [1] | $ 0 |
Restricted cash | $ 5 | 4 | $ 27 | |
Marketing Administration and Research Costs [Member] | ||||
Deconsolidation amount | 239 | |||
Smoking And Health Class Actions [Member] | RBH [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Canada [Member] | Appellate Ruling [Member] | ||||
Amount of litigation charge | 194 | |||
Cash [Member] | ||||
Cash divested from deconsolidation | 1,323 | |||
Restricted Cash [Member] | ||||
Cash divested from deconsolidation | $ 23 | |||
[1] | Includes deconsolidation of RBH cash and cash equivalents of $1,323 million and restricted cash of $23 million. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | [1] | Common Stock [Member] | Additional Paid-In Capital [Member] | Earnings Reinvested In The Business [Member] | Earnings Reinvested In The Business [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | [1] | Accumulated Other Comprehensive Losses [Member] | Cost of Repurchased Stock [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2017 | $ (10,230) | $ 238 | $ 0 | $ 1,972 | $ 29,859 | $ 238 | $ (8,535) | $ (35,382) | $ 1,856 | ||
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||||||
Net earnings | 8,286 | 7,911 | 375 | ||||||||
Other comprehensive earnings (losses), net of income taxes | (1,647) | (1,572) | (75) | ||||||||
Issuance of stock awards | 128 | 47 | 81 | ||||||||
Dividends declared | (6,994) | (6,994) | |||||||||
Payments to noncontrolling interests | (435) | (435) | |||||||||
Other | (85) | (80) | (4) | (1) | |||||||
Ending balance at Dec. 31, 2018 | (10,739) | 0 | 1,939 | 31,014 | (10,111) | (35,301) | 1,720 | ||||
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||||||
Net earnings | 7,728 | 7,185 | 543 | ||||||||
Other comprehensive earnings (losses), net of income taxes | 791 | ||||||||||
Other comprehensive earnings (losses), net of income taxes | 262 | 219 | 43 | ||||||||
Issuance of stock awards | 160 | 79 | 81 | ||||||||
Dividends declared | (7,212) | (7,212) | |||||||||
Payments to noncontrolling interests | (378) | (378) | |||||||||
Deconsolidation of RBH (Note 20) | 529 | 529 | |||||||||
Other | 51 | 1 | 50 | ||||||||
Ending balance at Dec. 31, 2019 | (9,599) | 0 | 2,019 | 30,987 | (9,363) | (35,220) | 1,978 | ||||
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||||||
Net earnings | 8,592 | 8,056 | 536 | ||||||||
Other comprehensive earnings (losses), net of income taxes | (1,780) | (1,818) | 38 | ||||||||
Issuance of stock awards | 160 | 69 | 91 | ||||||||
Dividends declared | (7,405) | (7,405) | |||||||||
Payments to noncontrolling interests | (602) | (602) | |||||||||
Other | 3 | 17 | 0 | (14) | |||||||
Ending balance at Dec. 31, 2020 | $ (10,631) | $ 0 | $ 2,105 | $ 31,638 | $ (11,181) | $ (35,129) | $ 1,936 | ||||
[1] | Financial Accounting Standard Update ASU 2016-01 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 1.20 | $ 1.20 | $ 1.17 | $ 1.17 | $ 1.17 | $ 1.17 | $ 1.14 | $ 1.14 | $ 4.74 | $ 4.62 | $ 4.49 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation: Background Philip Morris International Inc. is a holding company incorporated in Virginia, U.S.A., whose subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other nicotine-containing products, including reduced-risk products, in markets outside of the United States of America. In additio n, PMI ships versions o f its Platform 1 device and its consumables authorized by the U.S. Food and Drug Administration ("FDA") to Altria Group, Inc., for sale in the United States under license. Throughout these financial statements, the term "PMI" refers to Philip Morris International Inc. and its subsidiaries. Reduced-risk products ("RRPs") is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. "Platform 1" is the term PMI uses to refer to PMI’s reduced-risk product that uses a precisely controlled heating device incorporating our IQOS HeatControl technology, into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol. Basis of presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and expenses during the reporting periods. Significant estimates and assumptions include, among other things: pension and benefit plan assumptions; useful lives and valuation assumptions of goodwill and other intangible assets; valuation assumptions for non-marketable equity securities; marketing programs, and income taxes. Actual results could differ from those estimates. The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. Investments without readily determinable fair values, non-marketable equity securities, are measured and recorded using a measurement alternative that values the security at cost minus any impairment. All intercompany transactions and balances have been eliminated. PMI has analyzed the impact of the Coronavirus pandemic ("COVID-19") on its financial statements as of December 31, 2020. PMI has determined that the changes to its significant judgments and estimates did not have a material impact with respect to goodwill, intangible assets, long-lived assets or its hedge accounting activities. As of March 22, 2019, PMI deconsolidated the financial results of its Canadian subsidiary, Rothmans, Benson & Hedges Inc. ("RBH") from PMI's financial statements. For further details, see Note 20. Deconsolidation of RBH . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Depreciation Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 15 years, and buildings and building improvements over periods up to 40 years. Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. Fair value measurements PMI follows ASC 820, Fair Value Measurements and Disclosures with respect to assets and liabilities that are measured at fair value. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of input that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Foreign currency translation PMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. Goodwill and non-amortizable intangible assets valuation PMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. Impairment of long-lived assets PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Impairment of investment in non-marketable equity securities Non-marketable equity securities are subject to periodic impairment reviews during which PMI considers both qualitative and quantitative factors that may have a significant impact on the investees' fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. For further details see Note 20. Deconsolidation of RBH . Impairment of equity method investments Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. PMI determines whether a loss is other than temporary by considering the length of time and extent to which the fair value of the equity investment has been less than the carrying amount, the financial condition of the equity investment, and the intent to retain the investment for a period of time is sufficient to allow for any anticipated recovery in market value. Income taxes Income taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. PMI recognizes income taxes associated with Global Intangible Low-Taxed Income ("GILTI") taxes as current period expense rather than including these amounts in the measurement of deferred taxes. Inventories Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. Leases PMI determines that a contract contains a lease if the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Lease expense is recognized on a straight-line basis over the lease ter m with the expense recorded in cost of sales or marketing, administration and research costs depending on the nature of the leased item. At l ease commencement, PMI recognizes lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominately all of its operating leases. The recognition of the right-of-use asset and lease liability includes renewal options when it is reasonably certain that they will be exercised. Certain of PMI’s leases include payments that are based on changes to an index or on actual usage. These lease payments are adjusted periodically and are included within variable lease costs. PMI accounts for lease and nonlease components as a single-lease component with the exception of its vehicle leases, of which PMI accounts for the lease components separately from the nonlease components. Additionally, leases with an initial term of 12 months or less are not included in the right-of-use asset or lease liability on the consolidated statement of financial position. Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and other nicotine-containing products, including reduced-risk products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. In certain instances, PMI facilitates shipping and handling activities after control has transferred to the customer. PMI has elected to record all shipping and handling activities as costs to fulfill a contract. The shipping and handling costs that have not been incurred at the time revenue is recognized are accrued. The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration, where applicable. Such variable consideration is typically not constrained and is estimated based on the most likely amount that PMI expects to be entitled to under the terms of the contracts with customers, historical experience of discount or rebate redemption, where relevant, and the terms of any underlying discount or rebate programs, which may change from time to time as the business and product categories evolve. PMI has elected to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Estimated costs associated with warranty programs are generally provided for in cost of sales in the period the related revenues are recognized. Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 9. Stock Plans . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net: The movements in goodwill were as follows: (in millions) European Union Eastern Europe Middle East & Africa South & Southeast Asia East Asia & Australia Latin America & Canada Total Balance at January 1, 2019 $ 1,357 $ 303 $ 87 $ 2,795 $ 536 $ 2,111 $ 7,189 Changes due to: Currency (19) (3) 2 103 15 34 132 Deconsolidation of RBH (1,463) (1,463) Balances, December 31, 2019 1,338 300 89 2,898 551 682 5,858 Changes due to: Currency 96 17 (3) 17 8 (29) 106 Balances, December 31, 2020 $ 1,434 $ 317 $ 86 $ 2,915 $ 559 $ 653 $ 5,964 At December 31, 2020, goodwill primarily reflects PMI’s acquisitions in Colombia, Greece, Indonesia, Mexico, Pakistan and Serbia, as well as the business combination in the Philippines. For details on the deconsolidation of RBH, see Note 20. Deconsolidation of RBH . Details of other intangible assets were as follows: December 31, 2020 December 31, 2019 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,289 $ 1,289 $ 1,319 $ 1,319 Amortizable intangible assets: Trademarks 13 years 1,233 $ 594 639 1,217 $ 526 691 Distribution networks 7 years 115 78 37 113 72 41 Other* 8 years 104 50 54 106 44 62 Total other intangible assets $ 2,741 $ 722 $ 2,019 $ 2,755 $ 642 $ 2,113 * Primarily includes intellectual property rights Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico. The decrease since December 31, 2019, was due to currency movements of $(30) million. The increase in the gross carrying amount of amortizable intangible assets from December 31, 2019, was mainly due to currency movements of $15 million. The change in the accumulated amortization from December 31, 2019 was mainly due to the 2020 amortization of $73 million, combined with currency movements of $7 million. Amortization expense for each of the next five years is estimated to be $72 million or less, assuming no additional transactions occur that require the amortization of intangible assets. |
Related Parties - Equity Invest
Related Parties - Equity Investments and Other | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parties - Equity Investments and Other | Related Parties - Equity Investments and Other: Equity Method Investments: At December 31, 2020 and 2019, PMI had total equity method investments of $966 million and $1,053 million, respectively. Equity method investments are initially recorded at cost. Under the equity method of accounting, the investment is adjusted for PMI's proportionate share of earnings or losses, dividends, capital contributions, changes in ownership interests and movements in currency translation adjustments. The carrying value of our equity method investments at December 31, 2020 and 2019, exceeded our share of the investees' book value by $773 million and $901 million, respectively. The difference between the investment carrying value and the amount of underlying equity in net assets, excluding $745 million and $863 million attributable to goodwill as of December 31, 2020 and 2019, respectively, is being amortized on a straight-line basis over the underlying assets' estimated useful lives of 10 to 20 years. At December 31, 2020 and 2019, PMI received year-to-date dividends from equity method investees of $79 million and $100 million, respectively. PMI holds a 23% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis, PMI's distributor in Russia (Eastern Europe segment). PMI holds a 49% equity interest in United Arab Emirates-based Emirati Investors-TA (FZC) (“EITA”). PMI holds an approximate 25% economic interest in Société des Tabacs Algéro-Emiratie (“STAEM”), an Algerian joint venture that is 51% owned by EITA and 49% by the Algerian state-owned enterprise Management et Développement des Actifs et des Ressources Holding ("MADAR Holding"), which is part of the Middle East & Africa segment, manufactures and distributes under license some of PMI’s brands. The initial investments in Megapolis Distribution BV and EITA were recorded at cost and are included in equity investments on the consolidated balance sheets. Equity securities: Following the deconsolidation of RBH on March 22, 2019, PMI recorded the continuing investment in RBH, PMI's wholly owned subsidiary in Canada, at fair value of $3,280 million at the date of deconsolidation, within equity investments. For further details, see Note 20. Deconsolidation of RBH . Transactions between PMI and RBH are considered to be related-party transactions from the date of deconsolidation and are included in the tables below. The fair value of PMI’s other equity securities, which have been classified within Level 1, was $256 million and $332 million for the years ending December 31, 2020 and 2019, respectively. Unrealized pre-tax gain (loss) of $(76) million and $44 million ($(60) million and $35 million net of tax) on these equity securities was recorded in the consolidated statement of earnings for the years ended December 31, 2020 and 2019, respectively. For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . Other related parties: United Arab Emirates-based Trans-Emirates Trading and Investments (FZC) ("TTI") holds a 33% non-controlling interest in Philip Morris Misr LLC ("PMM"), an entity incorporated in Egypt which is consolidated in PMI’s financial statements in the Middle East & Africa segment. PMM sells, under license, PMI brands in Egypt through an exclusive distribution agreement with a local entity that is also controlled by TTI. Godfrey Phillips India Ltd ("GPI") is one of the non-controlling interest holders in IPM India, which is a 56.3% owned PMI consolidated subsidiary in the South & Southeast Asia segment. GPI also acts as contract manufacturer and distributor for IPM India. Amounts in the tables below include transactions between these related parties. Financial activity with the above related parties: PMI’s net revenues and expenses with the above related parties were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Net revenues Megapolis Group $ 2,174 $ 2,236 $ 1,994 Other 1,059 1,015 720 Net revenues (a) $ 3,233 $ 3,251 $ 2,714 Expenses: Other $ 51 $ 63 $ 21 Expenses $ 51 $ 63 $ 21 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: At December 31, (in millions) 2020 2019 Receivables: Megapolis Group $ 209 $ 375 Other 156 148 Receivables $ 365 $ 523 Payables: Other $ 13 $ 20 Payables $ 13 $ 20 |
Product Warranty
Product Warranty | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty | Product Warranty: PMI's IQOS devices are subject to standard product warranties generally for a period of 12 months from the date of purchase or such other periods as required by law. PMI generally provides in cost of sales for the estimated cost of warranty in the period the related revenue is recognized. PMI assesses the adequacy of its accrued product warranties and adjusts the amounts as necessary based on actual experience and changes in future estimates. Factors that affect product warranties may vary across markets but typically include device version mix, product failure rates, logistics and service delivery costs, and warranty policies. PMI accounts for its product warranties within other accrued liabilities. At December 31, 2020 and December 31, 2019, these amounts were as follows: At December 31, (in millions) 2020 2019 Balance at beginning of period $ 140 $ 67 Changes due to: Warranties issued 242 303 Settlements (254) (230) Currency/Other 9 — Balance at end of period $ 137 $ 140 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: On March 21, 2018, PMI acquired the remaining 49% interest in Tabacalera Costarricense, S.A. and Mendiola y Compañía, S.A. for a net purchase price of $95 million, which included $2 million of contingent consideration. As a result, PMI now owns 100% of these Costa Rican affiliates. The purchase of the remaining 49% interest resulted in a decrease to PMI’s additional paid-in capital of $86 million. |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness: Short-Term Borrowings At December 31, 2020 and 2019, PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2020 December 31, 2019 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ — — % $ — — % Bank loans 244 5.3 338 5.5 $ 244 $ 338 Given the mix of subsidiaries and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country. The fair values of PMI’s short-term borrowings at December 31, 2020 and 2019, based upon current market interest rates, approximate the amounts disclosed above. Long-Term Debt At December 31, 2020 and 2019, PMI’s long-term debt consisted of the following: December 31, (in millions) 2020 2019 U.S. dollar notes, 0.875% to 6.375% (average interest rate 3.199%), due through 2044 $ 21,221 $ 19,783 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.983%), due through 2039 9,253 9,822 Swiss franc notes, 1.625% to 2.000% (average interest rate 1.830%), due through 2024 622 899 Other (average interest rate 3.187%), due through 2025 (a) 196 203 Carrying value of long-term debt 31,292 30,707 Less current portion of long-term debt 3,124 4,051 $ 28,168 $ 26,656 (a) Includes mortgage debt in Switzerland as well as $37 million and $56 million in finance leases at December 31, 2020 and 2019, respectively. The fair value of PMI’s outstanding long-term debt, which is utilized solely for disclosure purposes, is determined using quotes and market interest rates currently available to PMI for issuances of debt with similar terms and remaining maturities. At December 31, 2020 and 2019 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: December 31, (in millions) 2020 2019 Level 1 $ 35,227 $ 32,821 Level 2 177 167 For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . Debt Issuances Outstanding: PMI’s debt issuances outstanding at December 31, 2020, were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $750 1.875% February 2016 February 2021 U.S. dollar notes $350 4.125% May 2011 May 2021 U.S. dollar notes $750 2.900% November 2011 November 2021 U.S. dollar notes $500 2.625% February 2017 February 2022 U.S. dollar notes $750 2.375% August 2017 August 2022 U.S. dollar notes $750 2.500% August 2012 August 2022 U.S. dollar notes $750 2.500% November 2017 November 2022 U.S. dollar notes $600 2.625% March 2013 March 2023 U.S. dollar notes $500 2.125% May 2016 May 2023 U.S. dollar notes $750 1.125% May 2020 May 2023 U.S. dollar notes $500 3.600% November 2013 November 2023 U.S. dollar notes $900 2.875% May 2019 May 2024 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $750 1.500% May 2020 May 2025 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $750 0.875% November 2020 May 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $500 3.125% November 2017 March 2028 U.S. dollar notes $750 3.375% May 2019 August 2029 U.S. dollar notes $750 2.100% May 2020 May 2030 U.S. dollar notes $750 1.750% November 2020 November 2030 U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (a) $500 4.250% May 2016 November 2044 EURO notes (b) €750 (approximately $1,029) 1.875% March 2014 March 2021 EURO notes (b) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (b) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (b) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (b) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (b) €500 (approximately $557) 0.125% August 2019 August 2026 EURO notes (b) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (b) €750 (approximately $835) 0.800% August 2019 August 2031 EURO notes (b) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (b) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (b) €500 (approximately $582) 1.875% November 2017 November 2037 EURO notes (b) €750 (approximately $835) 1.450% August 2019 August 2039 Swiss franc notes (b) CHF300 (approximately $335) 2.000% December 2011 December 2021 Swiss franc notes (b) CHF250 (approximately $283) 1.625% May 2014 May 2024 (a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. The net proceeds from the sale of the securities listed in the table above were used for general corporate purposes, including working capital requirements and repurchase of PMI's common stock until 2015. On January 25, 2021, PMI redeemed all of its outstanding 1.875% U.S. dollar notes due February 25, 2021. As of December 31, 2020, $750 million aggregate principal amount of the U.S. dollar notes were outstanding. The pre-tax loss related to this debt extinguishment, which was not material, will be included in Interest expense, net on PMI’s condensed consolidated statements of earnings for the three months ended March 31, 2021. Aggregate maturities: Aggregate maturities of long-term debt are as follows: (in millions) 2021 $ 3,124 2022 2,760 2023 2,362 2024 3,442 2025 2,424 2026-2030 7,206 2031-2035 1,535 Thereafter 8,699 31,552 Debt discounts (260) Total long-term debt $ 31,292 Credit Facilities At December 31, 2020, PMI’s total committed credit facilities were as follows: Type Committed 364-day revolving credit, expiring February 2, 2021 $ 2.0 Multi-year revolving credit, expiring October 1, 2022 3.5 Multi-year revolving credit, expiring February 10, 2025 2.0 Total facilities $ 7.5 At December 31, 2020, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. These facilities do not include any credit rating triggers, material adverse change clauses or any provisions that could require PMI to post collateral. The $3.5 billion multi-year revolving credit facility in the table above requires us to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“consolidated EBITDA”) to consolidated interest expense of not less than 3.5 to 1.0 on a rolling four-quarter basis. At December 31, 2020, PMI’s ratio calculated in accordance with the agreement was 12.6 to 1.0. PMI expects to continue to meet PMI's covenants. The terms “consolidated EBITDA” and “consolidated interest expense,” both of which include certain adjustments, are defined in the facility agreements previously filed with the U.S. Securities and Exchange Commission. On January 29, 2021, PMI entered into an agreement to amend and extend the term of its 364-day revolving credit facility from February 2, 2021, to February 1, 2022 in the amount o f $1.75 billion. On January 29, 2021, PMI also entered into an agreement, effective February 10, 2021, to amend and extend the term of its $2.0 billion multi-year revolving credit facility, for an additional year covering the period February 11, 2025 to February 10, 2026, in the amount of $1.86 billion. In addition to the committed credit facilities discussed above, certain subsidiaries maintain short-term credit arrangements to meet their respective working capital needs. These credit arrangements, which amounted to approximately $2.7 billion at December 31, 2020 and December 31, 2019, respectively, are for the sole use of the subsidiaries. Borrowings under these arrangements and other bank loans amounted to $244 million at December 31, 2020, and $338 million at December 31, 2019. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock: Shares of authorized common stock are 6.0 billion; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2018 2,109,316,331 (556,098,569) 1,553,217,762 Issuance of stock awards 1,361,959 1,361,959 Balances, December 31, 2018 2,109,316,331 (554,736,610) 1,554,579,721 Issuance of stock awards 1,314,942 1,314,942 Balances, December 31, 2019 2,109,316,331 (553,421,668) 1,555,894,663 Issuance of stock awards 1,479,068 1,479,068 Balances, December 31, 2020 2,109,316,331 (551,942,600) 1,557,373,731 At December 31, 2020, 25,148,458 shares of common stock were reserved for stock awards under PMI’s stock plans, and 250 million shares of preferred stock, without par value, were authorized but unissued. PMI currently has no plans to issue any shares of preferred stock. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Stock Plans | Stock Plans: In May 2017, PMI’s shareholders approved the Philip Morris International Inc. 2017 Performance Incentive Plan (the “2017 Plan”). Under the 2017 Plan, PMI may grant to eligible employees restricted shares and restricted share units, performance-based cash incentive awards and performance-based equity awards. Up to 25 million shares of PMI’s common stock may be issued under the 2017 Plan. At December 31, 2020, shares available for grant under the 2017 Plan were 17,293,960. In May 2017, PMI’s shareholders also approved the Philip Morris International Inc. 2017 Stock Compensation Plan for Non-Employee Directors (the “2017 Non-Employee Directors Plan”). A non-employee director is defined as a member of the PMI Board of Directors who is not a full-time employee of PMI or of any corporation in which PMI owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation. Up to 1 million shares of PMI common stock may be awarded under the 2017 Non-Employee Directors Plan. At December 31, 2020, shares available for grant under the plan were 933,338. Restricted share unit (RSU) awards PMI may grant RSU awards to eligible employees; recipients may not sell, assign, pledge or otherwise encumber such awards. Such awards are subject to forfeiture if certain employment conditions are not met. RSU awards generally vest on the third anniversary of the grant date. RSU awards do not carry voting rights, although they do earn dividend equivalents. During 2020, the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2020 3,725,870 $ 89.85 Granted 1,728,680 85.79 Vested (1,206,871) 96.91 Forfeited (149,439) 85.50 Balance at December 31, 2020 4,098,240 $ 86.21 During the years ended December 31, 2020, 2019 and 2018, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2020 $ 148 $ 85.79 $ 129 2019 $ 133 $ 77.28 $ 118 2018 $ 129 $ 100.19 $ 114 The fair value of the RSU awards at the date of grant is amortized to expense over the restriction period, typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2020, PMI had $133 million of total unrecognized compensation costs related to non-vested RSU awards. These costs are expected to be recognized over a weighted-average period of approximately two years, or upon death, disability or reaching the age of 58. During the years ended December 31, 2020, 2019 and 2018, share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2020 1,206,871 $ 117 $ 102 2019 1,126,057 $ 101 $ 95 2018 1,451,876 $ 121 $ 149 Performance share unit (PSU) awards PMI may grant PSU awards to certain executives; recipients may not sell, assign, pledge or otherwise encumber such awards. The PSU awards require the achievement of certain performance factors, which are predetermined at the time of grant, typically over a three-year performance cycle. The performance metrics for such PSU's granted during the 2020 consisted of PMI's Total Shareholder Return ("TSR") relative to a predetermined peer group and on an absolute basis (40% weight), PMI’s currency-neutral compound annual adjusted diluted earnings per share growth rate (30% weight), and PMI’s performance against specific measures of PMI’s transformation, defined as net revenues from PMI's RRPs and any other non-combustible products as a percentage of PMI's total net revenues in the last year of the performance cycle (30% weight). The performance metrics for such PSUs granted during the years ended 2019 and 2018 consisted of PMI’s TSR relative to a predetermined peer group and on an absolute basis (50% weight), PMI’s currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions (30% weight), and PMI’s performance against specific measures of PMI’s transformation (20% weight). The aggregate of the weighted performance factors for the three metrics in each such PSU award determines the percentage of PSUs that will vest at the end of the three-year performance cycle. The minimum percentage of such PSUs that can vest is zero, with a target percentage of 100 and a maximum percentage of 200. Each such vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned. PSU awards do not carry voting rights. During 2020, the activity for PSU awards was as follows: Number of Grant Date Grant Date (Per Share) (Per Share) Balance at January 1, 2020 1,347,460 $ 88.19 $ 107.61 Granted 671,220 86.04 80.36 Vested (343,806) 85.72 128.72 Forfeited (202,074) 95.66 116.67 Balance at December 31, 2020 1,472,800 $ 86.76 $ 90.48 During the years ended December 31, 2020, 2019 and 2018, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) PSU Grant Date Fair Value Subject to Other Performance Factors PSU Grant Date Fair Value Subject to TSR Performance Factor Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2020 $ 28 $ 86.04 $ 28 $ 80.36 $ 38 2019 $ 30 $ 77.23 $ 21 $ 83.59 $ 54 2018 $ 20 $ 100.69 $ 24 $ 118.98 $ 24 The grant date fair value of the PSU awards subject to the other performance factors was determined by using the average of the high and low market price of PMI’s stock at the date of the grant. The grant date fair value of the PSU market-based awards subject to the TSR performance factor was determined by using the Monte Carlo simulation model. The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 2019 2018 Risk-free interest rate (a) 1.4 % 2.4 % 2.3 % Expected volatility 23.5 % (b) 21.4 % (b) 19.6 % (c) (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. (c) Determined using a weighted-average of historical and implied volatility. The fair value of the PSU award at the date of grant is amortized to expense over the performance period, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2020, PMI had $39 million of total unrecognized compensation cost related to non-vested PSU awards. This cost is recognized over a weighted-average performance cycle period of approximately two years, or upon death, disability or reaching the age of 58. During the years ended December 31, 2020, and 2019, share and fair value information for PMI PSU awards that vested were as follows: (dollars in millions) Shares of PSU Awards that Vested Grant Date Fair Value of Vested Shares of PSU Awards Total Fair Value of PSU Awards that Vested 2020 343,806 $ 35 $ 30 2019 330,616 $ 32 $ 28 During the year ended December 31, 2018, there were no PSU awards that vested. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share: Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method. Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2020 2019 2018 Net earnings attributable to PMI $ 8,056 $ 7,185 $ 7,911 Less distributed and undistributed earnings attributable to share-based payment awards 20 17 16 Net earnings for basic and diluted EPS $ 8,036 $ 7,168 $ 7,895 Weighted-average shares for basic EPS 1,557 1,555 1,555 Plus contingently issuable performance stock units (PSUs) 1 1 — Weighted-average shares for diluted EPS 1,558 1,556 1,555 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Earnings before income taxes $ 10,953 $ 9,872 $ 10,671 Provision for income taxes: United States federal and state: Current $ (80) $ 17 $ 120 Deferred 53 24 (113) Total United States (27) 41 7 Outside United States: Current 2,600 2,417 2,425 Deferred (196) (165) 13 Total outside United States 2,404 2,252 2,438 Total provision for income taxes $ 2,377 $ 2,293 $ 2,445 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act and, on December 27, 2020, the Consolidated Appropriations Act, 2021 (“U.S. COVID-19 Acts”) were signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. As of December 31, 2020, PMI has determined that neither the U.S. COVID-19 Acts nor changes to income tax laws or regulations in other jurisdictions had a significant impact on PMI’s effective tax rate, with the exception of the corporate income tax rate reduction in Indonesia. On July 20, 2020, the U.S. Department of the Treasury and the Internal Revenue Service released final and proposed regulations under the Global Intangible Low-Taxed Income (“GILTI”) and other provisions of the Internal Revenue Code. PMI has analyzed these elective regulations and recorded the impact in its consolidated financial statements, as described below. At December 31, 2017, PMI recorded a one-time transition tax liability on its accumulated foreign earnings, which is payable over an eight-year period beginning in 2018. At December 31, 2020 and December 31, 2019, $1.1 billion and $1.2 billion of PMI's remaining transition tax liability, respectively, was recorded in "income taxes and other liabilities" on PMI's consolidated balance sheets. At December 31, 2020 and December 31, 2019, U.S. federal and foreign deferred income taxes have been provided on all accumulated earnings of PMI's foreign subsidiaries. PMI is regularly examined by tax authorities around the world and is currently under examination in a number of jurisdictions. The U.S. federal statute of limitations remains open for the years 2017 and onward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three It is reasonably possible that within the next 12 months certain tax examinations will close, which could result in a change in unrecognized tax benefits, along with related interest and penalties. An estimate of any possible change cannot be made at this time. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2020 2019 2018 Balance at January 1, $ 63 $ 56 $ 145 Additions based on tax positions related to the current year 11 10 10 Additions for tax positions of previous years 1 1 15 Reductions for tax positions of prior years (4) (2) (94) Reductions due to lapse of statute of limitations (1) (1) (3) Settlements — — (19) Other 2 (1) 2 Balance at December 31, $ 72 $ 63 $ 56 Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2020 December 31, 2019 December 31, 2018 Unrecognized tax benefits $ 72 $ 63 $ 56 Accrued interest and penalties 17 16 12 Tax credits and other indirect benefits (9) (12) (14) Liability for tax contingencies $ 80 $ 67 $ 54 The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $62 million at December 31, 2020. The remainder, if recognized, would principally affect deferred taxes. For the years ended December 31, 2020, 2019 and 2018, PMI recognized income (expense) in its consolidated statements of earnings of $(1) million, $(4) million and $4 million, respectively, related to interest and penalties associated with uncertain tax positions. The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: Foreign rate differences 0.6 1.8 1.3 Dividend repatriation cost 0.4 (0.5) 2.5 Global intangible low-taxed income 0.1 1.4 1.2 U.S. state taxes 0.2 0.7 (1.1) Foreign derived intangible income (0.6) (1.2) (1.1) Other — — (0.9) Effective tax rate 21.7 % 23.2 % 22.9 % The 2020 effective tax rate decreased 1.5 percentage points to 21.7%. The change in the effective tax rate for 2020, as compared to 2019, was favorably impacted by changes in earnings mix by taxing jurisdiction, a reduction of U.S. state tax expense, a reduction of estimated U.S. income tax liabilities for years 2018 and 2019 due to the GILTI regulations mentioned above ($93 million) and the corporate income tax rate reduction in Indonesia, partially offset by a decrease in deductions related to foreign-derived intangible income for the years 2018 and 2019 and repatriation cost differences. The 2019 effective tax rate increased 0.3 percentage points to 23.2%. The change in the effective tax rate for 2019, as compared to 2018, was unfavorably impacted by changes in earnings mix by taxing jurisdiction and U.S. state deferred income tax expense, partially offset by the reversal of a deferred tax liability on the unremitted earnings of PMI's Canadian subsidiary, RBH ($49 million), a reduction in estimated U.S. federal income tax on dividend repatriation for the years 2015-2018 ($67 million), and other repatriation cost differences. The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2020 2019 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 225 $ 184 Accrued pension costs 720 620 Inventory 232 176 Accrued liabilities 182 130 Net operating loss carryforwards and tax credits 351 486 Foreign exchange 27 — Other 124 101 Total deferred income tax assets 1,861 1,697 Less: valuation allowance (250) (304) Deferred income tax assets, net of valuation allowance 1,611 1,393 Deferred income tax liabilities: Trade names (374) (469) Property, plant and equipment (200) (180) Unremitted earnings (311) (243) Foreign exchange — (256) Total deferred income tax liabilities (885) (1,148) Net deferred income tax assets $ 726 $ 245 At December 31, 2020, PMI recorded deferred tax assets for net operating loss carryforwards and tax credits of $351 million, with varying dates of expiration, primarily after 2025, including $79 million with an unlimited carryforward period. At December 31, 2020, PMI has recorded a valuation allowance of $250 million against deferred tax assets that do not meet the more-likely-than not recognition threshold. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting: PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other nicotine-containing products, including RRPs, in markets outside of the United States of America. In addition, PMI ships versions of its Platform 1 device and its consumables authorized by the FDA to Altria Group, Inc. for sale in the United States under license. Operating segments for PMI are organized by geographic region and managed by segment managers who are responsible for the operating and financial results of the regions inclusive of all product categories sold in the region. PMI’s operating segments are the European Union; Eastern Europe; Middle East & Africa; South & Southeast Asia; East Asia & Australia; and Latin America & Canada. PMI records net revenues and operating income to its segments based upon the geographic area in which the customer resides. Revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc. for sale under license in the United States are included in Net Revenues of the Latin America & Canada segment. PMI’s chief operating decision maker evaluates segment performance and allocates resources based on regional operating income, which includes results from all product categories sold in each region. Interest expense, net, and provision for income taxes are centrally managed and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management. Information about total assets by segment is not disclosed because such information is not reported to or used by PMI’s chief operating decision maker. Segment goodwill and other intangible assets, net, are disclosed in Note 3. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies. PMI disaggregates its net revenue from contracts with customers by both geographic location and product category for each of PMI's six operating segments, as PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net revenues by segment were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Net revenues: European Union $ 10,702 $ 9,817 $ 9,298 Eastern Europe 3,378 3,282 2,921 Middle East & Africa 3,088 4,042 4,114 South & Southeast Asia 4,396 5,094 4,656 East Asia & Australia 5,429 5,364 5,580 Latin America & Canada 1,701 2,206 3,056 Net revenues $ 28,694 $ 29,805 $ 29,625 Total net revenues attributable to customers located in Japan, PMI's largest market in terms of net revenues, were $4.1 billion, $3.9 billion and $3.8 billion in 2020, 2019 and 2018, respectively. PMI had one customer in the East Asia & Australia segment that accounted for 14%, 13% and 13% of PMI’s consolidated net revenues, and one customer in the European Union segment that accounted for 11%, 10% and 10% of PMI’s consolidated net revenues in 2020, 2019 and 2018, respectively. PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Combustible products: European Union $ 8,053 $ 8,093 $ 8,433 Eastern Europe 2,250 2,438 2,597 Middle East & Africa 3,031 3,721 3,732 South & Southeast Asia 4,395 5,094 4,656 East Asia & Australia 2,468 2,693 3,074 Latin America & Canada 1,670 2,179 3,037 Total combustible products $ 21,867 $ 24,218 $ 25,529 Reduced-risk products: European Union $ 2,649 $ 1,724 $ 865 Eastern Europe 1,128 844 324 Middle East & Africa 57 321 382 South & Southeast Asia 1 — — East Asia & Australia 2,961 2,671 2,506 Latin America & Canada 31 27 19 Total reduced-risk products $ 6,827 $ 5,587 $ 4,096 Total PMI net revenues $ 28,694 $ 29,805 $ 29,625 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's cigarettes and other tobacco products combined. Other tobacco products primarily include roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos and do not include reduced-risk products. Net revenues related to reduced-risk products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's heated tobacco units, heat-not-burn devices and related accessories, and other nicotine-containing products, which primarily include PMI's e-vapor products. Operating income by segment were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Operating income: European Union $ 5,098 $ 3,970 $ 4,105 Eastern Europe 871 547 902 Middle East & Africa 1,026 1,684 1,627 South & Southeast Asia 1,709 2,163 1,747 East Asia & Australia 2,400 1,932 1,851 Latin America & Canada 564 235 1,145 Operating income $ 11,668 $ 10,531 $ 11,377 Items affecting the comparability of results from operations were as follows: • Asset impairment and exit costs - See Note 19. Asset Impairment and Exit Costs for details of the $149 million and $422 million pre-tax charges for the years ended December 31, 2020 and 2019, respectively, as well as a breakdown of these costs by segment. • Russia excise and VAT audit charge - See Note 17. Contingencies for details of the $374 million pre-tax charge included in the Eastern Europe segment for the year ended December 31, 2019. • Canadian tobacco litigation-related expense - See Note 17. Contingencies and Note 20. Deconsolidation of RBH for details of the $194 million pre-tax charge included in the Latin America & Canada segment for the year ended December 31, 2019. • Loss on deconsolidation of RBH - See Note 20. Deconsolidation of RBH for details of the $239 million loss included in the Latin America & Canada segment for the year ended December 31, 2019. • Brazil indirect tax credit - Following a final and enforceable decision by the highest court in Brazil in October 2020, PMI recorded a gain of $119 million for tax credits representing overpayments of indirect taxes for the period from March 2012 through December 2019; these tax credits will be applied to future tax liabilities in Brazil. This amount was included as a reduction in marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2020 and was included in the operating income of the Latin America & Canada segment. A decision regarding an additional amount of overpaid indirect taxes of approximately $90 million is still pending before this court. Other segment data were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Depreciation expense: European Union $ 266 $ 254 $ 269 Eastern Europe 173 147 101 Middle East & Africa 75 90 105 South & Southeast Asia 137 142 154 East Asia & Australia 188 185 173 Latin America & Canada 58 69 94 897 887 896 Other 11 11 11 Total depreciation expense $ 908 $ 898 $ 907 For the Years Ended December 31, (in millions) 2020 2019 2018 Capital expenditures: European Union $ 326 $ 466 $ 813 Eastern Europe 88 132 136 Middle East & Africa 22 35 65 South & Southeast Asia 115 100 129 East Asia & Australia 13 67 215 Latin America & Canada 36 52 74 600 852 1,432 Other 2 — 4 Total capital expenditures $ 602 $ 852 $ 1,436 At December 31, (in millions) 2020 2019 2018 Long-lived assets: European Union $ 4,500 $ 4,275 $ 4,216 Eastern Europe 668 774 547 Middle East & Africa 375 369 362 South & Southeast Asia 1,348 1,361 1,297 East Asia & Australia 807 829 781 Latin America & Canada 433 478 779 Total long-lived assets 8,131 8,086 7,982 Other 1,001 516 664 Total property, plant and equipment, net and Other assets $ 9,132 $ 8,602 $ 8,646 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans: Pension coverage for employees of PMI’s subsidiaries is provided, to the extent deemed appropriate, through separate plans, many of which are governed by local statutory requirements. In addition, PMI provides health care and other benefits to substantially all U.S. retired employees and certain non-U.S. retired employees. In general, health care benefits for non-U.S. retired employees are covered through local government plans. Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Net pension costs (income) $ (14) $ (18) $ (51) Net postemployment costs 103 100 80 Net postretirement costs 8 7 12 Total pension and other employee benefit costs $ 97 $ 89 $ 41 Pension and Postretirement Benefit Plans Obligations and Funded Status The postretirement health care plans are not funded. The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation and net amount accrued for PMI's postretirement health care plans, at December 31, 2020 and 2019, were as follows: Pension (1) Postretirement (in millions) 2020 2019 2020 2019 Benefit obligation at January 1 $ 10,612 $ 9,152 $ 190 $ 209 Service cost 268 214 2 2 Interest cost 68 118 6 7 Benefits paid (2) (356) (333) (7) (8) Employee contributions (2) 130 127 — — Settlement, curtailment and plan amendment (117) 50 Actuarial losses (gains) 653 1,430 5 27 Currency 992 29 3 — Deconsolidation of RBH — (166) — (42) Other (2) (7) (9) (1) (5) Benefit obligation at December 31, 12,243 10,612 198 190 Fair value of plan assets at January 1, 7,928 6,888 Actual return on plan assets 206 1,211 Employer contributions 102 200 Employee contributions (2) 130 127 Benefits paid (2) (356) (333) Settlement (16) — Currency 752 7 Deconsolidation of RBH — (172) Fair value of plan assets at December 31, 8,746 7,928 Net pension and postretirement liability recognized at December 31, $ (3,497) $ (2,684) $ (198) $ (190) (1) Primarily non-U.S. based defined benefit retirement plans. (2) Certain prior years' amounts pertaining to PMI’s pension plans have been reclassified in the table above to conform with the current year's presentation. For the years ended December 31, 2020 and 2019, actuarial losses (gains) consisted primarily of losses for assumption changes related to lower discount rates year-over-year for Swiss, German and Dutch plans. At December 31, 2020 and 2019, the Swiss pension plan represented 63% and 62% of the benefit obligation, respectively, and approximately 59% and 59% of the fair value of plan assets at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the U.S. pension plan represented 4% and 4% of the benefit obligation, respectively, and approximately 4% and 4% of the fair value of plan assets at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2020 2019 2020 2019 Other assets $ 43 $ 43 Accrued liabilities — employment costs (26) (23) $ (8) $ (8) Long-term employment costs (3,514) (2,704) (190) (182) $ (3,497) $ (2,684) $ (198) $ (190) The accumulated benefit obligation, which represents benefits earned to date, for the pension plans was $11.5 billion and $10.0 billion at December 31, 2020 and 2019, respectively. For pension plans with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $10.5 billion and $7.7 billion, respectively, as of December 31, 2020. The accumulated benefit obligation and fair value of plan assets were $9.0 billion and $6.8 billion, respectively, as of December 31, 2019. For pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation and fair value of plan assets were $12.1 billion and $8.6 billion, respectively, as of December 31, 2020. The projected benefit obligation and fair value of plan assets were $10.4 billion and $7.7 billion, respectively, as of December 31, 2019. The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2020 2019 2020 2019 Discount rate 0.56 % 0.83 % 2.84 % 3.28 % Rate of compensation increase 1.79 1.82 Interest crediting rate 3.20 3.20 Health care cost trend rate assumed for next year 6.21 6.21 Ultimate trend rate 4.73 5.09 Year that rate reaches the ultimate trend rate 2029 2023 The discount rate for the largest pension plans is based on a yield curve constructed from a portfolio of high quality corporate bonds that produces a cash flow pattern equivalent to each plan’s expected benefit payments. The discount rate for the remaining plans is developed from local bond indices that match local benefit obligations as closely as possible. Components of Net Periodic Benefit Cost Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2020, 2019 and 2018: Pension Postretirement (in millions) 2020 2019 2018 2020 2019 2018 Service cost $ 268 $ 214 $ 210 $ 2 $ 2 $ 4 Interest cost 68 118 109 6 7 9 Expected return on plan assets (353) (328) (349) — — — Amortization: Net losses 265 189 172 2 — 4 Prior service cost 1 (1) 2 — — (1) Net transition obligation 1 — — — — — Settlement and curtailment 4 4 15 — — — Net periodic pension and postretirement costs $ 254 $ 196 $ 159 $ 10 $ 9 $ 16 Settlement and curtailment charges were due primarily to employee severance and early retirement programs. The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2020 2019 2018 2020 2019 2018 Discount rate - service cost 1.25 % 2.14 % 1.92 % 3.28 % 3.97 % 3.79 % Discount rate - interest cost 0.67 1.35 1.25 3.28 3.97 3.79 Expected rate of return on plan assets 4.59 4.70 4.76 Rate of compensation increase 1.82 1.86 1.65 Interest crediting rate 3.20 3.40 3.40 Health care cost trend rate 6.21 6.17 6.17 PMI’s expected rate of return on pension plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. PMI and certain of its subsidiaries sponsor defined contribution plans. Amounts charged to expense for defined contribution plans totaled $66 million, $63 million and $66 million for the years ended December 31, 2020, 2019 and 2018, respectively. Plan Assets PMI’s investment strategy for pension plans is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, the target allocation of PMI’s plan assets is broadly characterized as approximately 60% in equity securities and approximately 40% in debt securities and other assets. The strategy primarily utilizes indexed U.S. equity securities, international equity securities and investment-grade debt securities. PMI’s plans have no investments in hedge funds, private equity or derivatives. PMI attempts to mitigate investment risk by rebalancing between equity and debt asset classes once a year or as PMI’s contributions and benefit payments are made. The fair value of PMI’s pension plan assets at December 31, 2020 and 2019, by asset category was as follows: Asset Category At December 31, 2020 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 324 $ 324 Equity securities: U.S. securities 175 175 International securities 605 605 Investment funds (a) 6,811 5,206 $ 1,605 International government bonds 225 149 76 Corporate bonds 292 292 Other 7 7 Total assets in the fair value hierarchy $ 8,439 $ 6,758 $ 1,681 $ — Investment funds measured at net asset value (b) 307 Total assets $ 8,746 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 63% are invested in U.S. and international equities; 16% are invested in U.S. and international government bonds; 12% are invested in real estate, and 9% are invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Asset Category At December 31, 2019 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 276 $ 276 Equity securities: U.S. securities 170 170 International securities 563 563 Investment funds (a) 6,125 4,625 $ 1,500 International government bonds 197 137 60 Corporate bonds 282 282 Other 6 6 Total assets in the fair value hierarchy $ 7,619 $ 6,059 $ 1,560 $ — Investment funds measured at net asset value (b) 309 Total assets $ 7,928 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 63% were invested in U.S. and international equities; 16% were invested in U.S. and international government bonds; 12% were invested in real estate and other money markets, and 9% were invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . PMI makes, and plans to make, contributions to the extent that they are tax deductible and to meet specific funding requirements of its funded pension plans. Currently, PMI anticipates making contributions of approximately $262 million in 2021 to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest and currency rates. The estimated future benefit payments from PMI pension plans at December 31, 2020, are as follows: (in millions) 2021 $ 401 2022 383 2023 387 2024 390 2025 399 2026 - 2030 2,226 PMI's expected future annual benefit payments for its postretirement health care plans are estimated to be not material through 2030. Postemployment Benefit Plans PMI and certain of its subsidiaries sponsor postemployment benefit plans covering substantially all salaried and certain hourly employees. The cost of these plans is charged to expense over the working life of the covered employees. Net postemployment costs were $208 million, $171 million and $158 million for the years ended December 31, 2020, 2019 and 2018, respectively. The amounts recognized in accrued postemployment costs net of plan assets on PMI's consolidated balance sheets at December 31, 2020 and 2019, were $923 million and $751 million, respectively. The change in the liability is primarily due to actuarial losses of $142 million in 2020 resulting from increased employee severance payout primarily in countries in the European Union and Latin America & Canada segments, coupled with the periodic expense, partially offset by cash payments. The accrued postemployment costs were determined using a weighted-average discount rate of 3.0% and 3.0% in 2020 and 2019, respectively; an assumed ultimate annual weighted-average turnover rate of 3.0% and 3.0% in 2020 and 2019, respectively; assumed compensation cost increases of 2.1% in 2020 and 2.6% in 2019, and assumed benefits as defined in the respective plans. In accordance with local regulations, certain postemployment plans are funded. As a result, the accrued postemployment costs disclosed above are presented net of the related assets of $46 million and $40 million at December 31, 2020 and 2019, respectively. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Comprehensive Earnings (Losses) The amounts recorded in accumulated other comprehensive losses at December 31, 2020, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (4,147) $ (64) $ (839) $ (5,050) Prior service cost 22 2 (22) 2 Net transition obligation (3) — — (3) Deferred income taxes 570 24 204 798 Losses to be amortized $ (3,558) $ (38) $ (657) $ (4,253) The amounts recorded in accumulated other comprehensive losses at December 31, 2019, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,718) $ (63) $ (775) $ (4,556) Prior service cost 3 2 — 5 Net transition obligation (4) — — (4) Deferred income taxes 520 24 182 726 Losses to be amortized $ (3,199) $ (37) $ (593) $ (3,829) The amounts recorded in accumulated other comprehensive losses at December 31, 2018, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,438) $ (41) $ (702) $ (4,181) Prior service cost (27) 3 — (24) Net transition obligation (4) — — (4) Deferred income taxes 379 20 164 563 Losses to be amortized $ (3,090) $ (18) $ (538) $ (3,646) The movements in other comprehensive earnings (losses) during the year ended December 31, 2020, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 250 $ 3 $ 78 $ 331 Prior service cost 29 — — 29 Net transition obligation 1 — — 1 Other income/expense: Net losses 3 — — 3 Prior service cost 2 — — 2 Deferred income taxes (49) (1) (17) (67) 236 2 61 299 Other movements during the year: Net losses (682) (4) (142) (828) Prior service cost (12) — (22) (34) Deferred income taxes 99 1 39 139 (595) (3) (125) (723) Total movements in other comprehensive earnings (losses) $ (359) $ (1) $ (64) $ (424) The movements in other comprehensive earnings (losses) during the year ended December 31, 2019, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 198 $ 3 $ 77 $ 278 Prior service cost 32 (1) — 31 Other income/expense: Net losses 3 — — 3 Deferred income taxes (51) (1) (17) (69) 182 1 60 243 Other movements during the year: Net losses (521) (27) (150) (698) Prior service cost (2) — — (2) Deconsolidation of RBH (net of deferred income taxes) 26 1 — 27 Deferred income taxes 206 6 35 247 (291) (20) (115) (426) Total movements in other comprehensive earnings (losses) $ (109) $ (19) $ (55) $ (183) The movements in other comprehensive earnings (losses) during the year ended December 31, 2018, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 180 $ 5 $ 62 $ 247 Prior service cost — (1) — (1) Net transition obligation 1 — — 1 Other income/expense: Net losses 14 — — 14 Deferred income taxes (28) (1) (14) (43) 167 3 48 218 Other movements during the year: Net losses (1,008) 34 (147) (1,121) Prior service cost 8 — — 8 Deferred income taxes 80 (7) (8) 65 (920) 27 (155) (1,048) Total movements in other comprehensive earnings (losses) $ (753) $ 30 $ (107) $ (830) |
Additional Information
Additional Information | 12 Months Ended |
Dec. 31, 2020 | |
Additional Information [Abstract] | |
Additional Information | Additional Information: For the Years Ended December 31, (in millions) 2020 2019 2018 Research and development expense $ 495 $ 465 $ 383 Advertising expense $ 637 $ 730 $ 896 Foreign currency net transaction (gains)/losses $ 90 $ (95) $ 21 Interest expense $ 728 $ 796 $ 855 Interest income (110) (226) (190) Interest expense, net $ 618 $ 570 $ 665 Total lease cost $ 317 (1) $ 332 (1) $ 312 (1) For additional information on total lease costs, see Note 21. Leases. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments: Overview PMI operates in markets outside of the United States of America, with manufacturing and sales facilities in various locations around the world. PMI utilizes certain financial instruments to manage foreign currency and interest rate exposure. Derivative financial instruments are used by PMI principally to reduce exposures to market risks resulting from fluctuations in foreign currency exchange and interest rates by creating offsetting exposures. PMI is not a party to leveraged derivatives and, by policy, does not use derivative financial instruments for speculative purposes. Substantially all of PMI's derivative financial instruments are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. While these contracts contain the enforceable right to offset through close-out netting rights, PMI elects to present them on a gross basis in the consolidated balance sheets. Collateral associated with these arrangements is in the form of cash and is unrestricted. Financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. PMI formally documents the nature and relationships between the hedging instruments and hedged items, as well as its risk-management objectives, strategies for undertaking the various hedge transactions and method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, the significant characteristics and expected terms of the forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction will occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss would be recognized in earnings. PMI uses deliverable and non-deliverable forward foreign exchange contracts, foreign currency swaps and foreign currency options, collectively referred to as foreign exchange contracts ("foreign exchange contracts"), and interest rate contracts to mitigate its exposure to changes in exchange and interest rates from third-party and intercompany actual and forecasted transactions. Both foreign exchange contracts and interest rate contracts are collectively referred to as derivative contracts ("derivative contracts"). The primary currencies to which PMI is exposed include the Euro, Indonesian rupiah, Japanese yen, Mexican peso, Philippine peso, Russian ruble and Swiss franc. At December 31, 2020 and 2019, PMI had contracts with aggregate notional amounts of $26.5 billion and $24.1 billion, respectively. Of the $26.5 billion aggregate notional amount at December 31, 2020, $5.0 billion related to cash flow hedges, $8.9 billion related to hedges of net investments in foreign operations and $12.6 billion related to other derivatives that primarily offset currency exposures on intercompany financing. Of the $24.1 billion aggregate notional amount at December 31, 2019, $2.8 billion related to cash flow hedges, $9.9 billion related to hedges of net investments in foreign operations and $11.4 billion related to other derivatives that primarily offset currency exposures on intercompany financing. The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2020 and 2019, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2020 2019 Balance Sheet Classification 2020 2019 Derivative contracts designated as hedging instruments Other current assets $ 130 $ 319 Other accrued liabilities $ 241 $ 23 Other assets 6 21 Income taxes and other liabilities 605 301 Derivative contracts not designated as hedging instruments Other current assets 46 50 Other accrued liabilities 207 70 Other assets — — Income taxes and other liabilities 57 25 Total gross amount derivatives contracts presented in the consolidated balance sheets $ 182 $ 390 $ 1,110 $ 419 Gross amounts not offset in the consolidated balance sheets Financial instruments (156) (297) (156) (297) Cash collateral received/pledged (23) (91) (892) (59) Net amount $ 3 $ 2 $ 62 $ 63 PMI assesses the fair value of its foreign exchange contracts and interest rate contracts using standard valuation models that use, as their basis, readily observable market inputs. The fair value of PMI’s foreign exchange forward contracts, foreign currency swaps and interest rate contracts is determined by using the prevailing foreign exchange spot rates and interest rate differentials, and the respective maturity dates of the instruments. The fair value of PMI’s currency options is determined by using a Black-Scholes methodology based on foreign exchange spot rates and interest rate differentials, currency volatilities and maturity dates. PMI’s derivative contracts have been classified within Level 2 at December 31, 2020 and 2019. For the years ended December 31, 2020, 2019 and 2018, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Years Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2020 2019 2018 2020 2019 2018 2020 2019 2018 Derivative contracts designated as hedging instruments: Cash flow hedges $ (81) $ (20) $ 28 Net revenues $ (3) $ 22 $ 18 Cost of sales 7 1 — Marketing, administration and research costs 27 2 6 Interest expense, net (11) (8) (1) Net investment hedges (a) (514) 369 324 Interest expense, net (b) $ 194 $ 230 $ 260 Derivative contracts not designated as hedging instruments Interest expense, net 71 94 62 Marketing, administration and research costs (c) (368) (115) 378 Total $ (595) $ 349 $ 352 $ 20 $ 17 $ 23 $ (103) $ 209 $ 700 (a) Amount of gains (losses) on hedges of net investments principally related to changes in exchange and interest rates between the Euro and U.S. dollar (b) Represent the gains for amounts excluded from the effectiveness testing (c) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates substantially offset the (losses) and gains generated by the underlying intercompany and third-party loans being hedged Cash Flow Hedges PMI has entered into derivative contracts to hedge the foreign currency exchange and interest rate risks related to certain forecasted transactions. Gains and losses associated with qualifying cash flow hedge contracts are deferred as components of accumulated other comprehensive losses until the underlying hedged transactions are reported in PMI’s consolidated statements of earnings. As of December 31, 2020, PMI has hedged forecasted transactions for periods not exceeding the next eighteen months, with the exception of one derivative contract that expires in May 2024. The impact of these hedges is primarily included in operating cash flows on PMI’s consolidated statements of cash flows. Hedges of Net Investments in Foreign Operations PMI designates derivative contracts and certain foreign currency denominated debt instruments as net investment hedges, primarily of its Euro net assets. The amount of pre-tax gain/(loss) related to these debt instruments, that was reported as a component of accumulated other comprehensive losses within currency translation adjustment, was $(465) million , $234 million and $349 million, for the years ended December 31, 2020, 2019 and 2018, respectively. The premiums paid for, and settlements of, net investment hedges are included in investing cash flows on PMI’s consolidated statements of cash flows. Other Derivatives PMI has entered into derivative contracts to hedge the foreign currency exchange and interest rate risks related to intercompany loans between certain subsidiaries, and third-party loans. While effective as economic hedges, no hedge accounting is applied for these contracts; therefore, the gains (losses) relating to these contracts are reported in PMI’s consolidated statements of earnings. Qualifying Hedging Activities Reported in Accumulated Other Comprehensive Losses Derivative gains or losses reported in accumulated other comprehensive losses are a result of qualifying hedging activity. Transfers of these gains or losses to earnings are offset by the corresponding gains or losses on the underlying hedged item. Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Gain as of January 1, $ 3 $ 35 $ 42 Derivative (gains)/losses transferred to earnings (20) (14) (31) Change in fair value (68) (18) 24 Gain/(loss) as of December 31, $ (85) $ 3 $ 35 At December 31, 2020, PMI expects $(49) million of derivative losses that are included in accumulated other comprehensive losses to be reclassified to the consolidated statement of earnings within the next 12 months. These losses are expected to be substantially offset by the statement of earnings impact of the respective hedged transactions. Contingent Features PMI’s derivative instruments do not contain contingent features. Credit Exposure and Credit Risk |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Losses | Accumulated Other Comprehensive Losses: PMI's accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At December 31, (in millions) 2020 2019 2018 Currency translation adjustments $ (6,843) $ (5,537) $ (6,500) Pension and other benefits (4,253) (3,829) (3,646) Derivatives accounted for as hedges (85) 3 35 Total accumulated other comprehensive losses $ (11,181) $ (9,363) $ (10,111) Reclassifications from Other Comprehensive Earnings The movements in accumulated other comprehensive losses and the related tax impact, for each of the components above, that are due to current period activity and reclassifications to the income statement, including those related to the deconsolidation of RBH, are shown on the consolidated statements of comprehensive earnings for the years ended December 31, 2020, 2019, and 2018. For additional information, see Note 13. Benefit Plans for disclosures related to PMI's pension and other benefits, Note 15. Financial Instruments for disclosures related to derivative financial instruments and Note 20. Deconsolidation of RBH for disclosures related to the deconsolidation of RBH. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: Tobacco-Related Litigation Legal proceedings covering a wide range of matters are pending or threatened against us, and/or our subsidiaries, and/or our indemnitees in various jurisdictions. Our indemnitees include distributors, licensees, and others that have been named as parties in certain cases and that we have agreed to defend, as well as to pay costs and some or all of judgments, if any, that may be entered against them. Pursuant to the terms of the Distribution Agreement between Altria Group, Inc. ("Altria") and PMI, PMI will indemnify Altria and Philip Morris USA Inc. ("PM USA"), a U.S. tobacco subsidiary of Altria, for tobacco product claims based in substantial part on products manufactured by PMI or contract manufactured for PMI by PM USA, and PM USA will indemnify PMI for tobacco product claims based in substantial part on products manufactured by PM USA, excluding tobacco products contract manufactured for PMI. It is possible that there could be adverse developments in pending cases against us and our subsidiaries. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. Damages claimed in some of the tobacco-related litigation are significant and, in certain cases in Brazil, Canada and Nigeria, range into the billions of U.S. dollars. The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome. Much of the tobacco-related litigation is in its early stages, and litigation is subject to uncertainty. However, as discussed below, we have to date been largely successful in defending tobacco-related litigation. We and our subsidiaries record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. At the present time, except as stated otherwise in this Note 17. Contingencies, while it is reasonably possible that an unfavorable outcome in a case may occur, after assessing the information available to it (i) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases; and (iii) accordingly, no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases, if any. Legal defense costs are expensed as incurred. It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation. Nevertheless, although litigation is subject to uncertainty, we and each of our subsidiaries named as a defendant believe, and each has been so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid bases for appeal of adverse verdicts. All such cases are, and will continue to be, vigorously defended. However, we and our subsidiaries may enter into settlement discussions in particular cases if we believe it is in our best interests to do so. CCAA Proceedings and Stay of Tobacco-Related Cases Pending in Canada As a result of the Court of Appeal of Quebec’s decision in both the Létourneau and Blais cases described below, our subsidiary, Rothmans, Benson & Hedges Inc. (“RBH”), and the other defendants, JTI Macdonald Corp., and Imperial Tobacco Canada Limited, sought protection in the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (“CCAA”) on March 22, March 8, and March 12, 2019 respectively. CCAA is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course. The initial CCAA order made by the Ontario Superior Court on March 22, 2019 authorizes RBH to pay all expenses incurred in carrying on its business in the ordinary course after the CCAA filing, including obligations to employees, vendors, and suppliers. As further described in Note 20. Deconsolidation of RBH , RBH is now deconsolidated from our consolidated financial statements. As part of the CCAA proceedings, there is currently a comprehensive stay up to and including March 31, 2021 of all tobacco-related litigation pending in Canada against RBH and the other defendants, including PMI and our indemnitees (PM USA and Altria), namely, the smoking and health class actions filed in various Canadian provinces and health care cost recovery actions. These proceedings are presented below under the caption “ Stayed Litigation — Canada .” Ernst & Young Inc. has been appointed as monitor of RBH in the CCAA proceedings. In accordance with the CCAA process, as the parties work towards a plan of arrangement or compromise in a confidential mediation, it is anticipated that the court will set additional hearings and further extend the stay of proceedings. On April 17, 2019, the Ontario Superior Court ruled that RBH and the other defendants will not be allowed to file an application to the Supreme Court of Canada for leave to appeal the Court of Appeal’s decision in the Létourneau and the Blais cases so long as the comprehensive stay of all tobacco-related litigation in Canada remains in effect and that the time period to file the application would be extended by the stay period. While RBH believes that the findings of liability and damages in both Létourneau and the Blais cases were incorrect, the CCAA proceedings will provide a forum for RBH to seek resolution through a plan of arrangement or compromise of all tobacco-related litigation pending in Canada. It is not possible to predict the resolution of the underlying legal proceedings or the length of the CCAA process. Stayed Litigation — Canada Smoking and Health Litigation — Canada In the first class action pending in Canada, Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI-Macdonald Corp., Quebec Superior Court, Canada , filed in November 1998, RBH and other Canadian manufacturers (Imperial Tobacco Canada Ltd. and JTI-Macdonald Corp.) are defendants. The plaintiffs, an anti-smoking organization and an individual smoker, sought compensatory and punitive damages for each member of the class who allegedly suffers from certain smoking-related diseases. The class was certified in 2005. The trial court issued its judgment on May 27, 2015. The trial court found RBH and two other Canadian manufacturers liable and found that the class members’ compensatory damages totaled approximately CAD 15.5 billion, including pre-judgment interest (approximately $12.1 billion). The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion, including pre-judgment interest (approximately $2.4 billion)). In addition, the trial court awarded CAD 90,000 (approximately $70,250) in punitive damages, allocating CAD 30,000 (approximately $23,400) to RBH. The trial court estimated the disease class at 99,957 members. RBH appealed to the Court of Appeal of Quebec. In October 2015, the Court of Appeal ordered RBH to furnish security totaling CAD 226 million (approximately $176.4 million) to cover both the Létourneau and Blais cases, which RBH has paid in installments through March 2017. The Court of Appeal ordered Imperial Tobacco Canada Ltd. to furnish security totaling CAD 758 million (approximately $592 million) in installments through June 2017. JTI Macdonald Corp. was not required to furnish security in accordance with plaintiffs’ motion. The Court of Appeal ordered that the security is payable upon a final judgment of the Court of Appeal affirming the trial court’s judgment or upon further order of the Court of Appeal. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court’s findings of liability and the compensatory and punitive damages award while reducing the total amount of compensatory damages to approximately CAD 13.5 billion including interest (approximately $10.5 billion) due to the trial court’s error in the calculation of interest. The compensatory damages award is on a joint and several basis with an allocation of 20% to RBH (approximately CAD 2.7 billion, including pre-judgment interest (approximately $2.11 billion)). The Court of Appeal upheld the trial court’s findings that defendants violated the Civil Code of Quebec, the Quebec Charter of Human Rights and Freedoms, and the Quebec Consumer Protection Act by failing to warn adequately of the dangers of smoking and by conspiring to prevent consumers from learning of the dangers of smoking. The Court of Appeal further held that the plaintiffs either need not prove, or had adequately proven, that these faults were a cause of the class members’ injuries. In accordance with the judgment, defendants are required to deposit their respective portions of the damages awarded in both the Létourneau case described below and the Blais case, approximately CAD 1.1 billion (approximately $859 million), into trust accounts within 60 days. RBH’s share of the deposit is approximately CAD 257 million (approximately $194 million). PMI recorded a pre-tax charge of $194 million in its consolidated results, representing $142 million net of tax, as tobacco litigation-related expense, in the first quarter of 2019. The charge reflects PMI’s assessment of the portion of the judgment that represents probable and estimable loss prior to the deconsolidation of RBH and corresponds to the trust account deposit required by the judgment. In the second class action pending in Canada, Cecilia Létourneau v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI-Macdonald Corp., Quebec Superior Court, Canada, filed in September 1998, RBH and other Canadian manufacturers (Imperial Tobacco Canada Ltd. and JTI-Macdonald Corp.) are defendants. The plaintiff, an individual smoker, sought compensatory and punitive damages for each member of the class who is deemed addicted to smoking. The class was certified in 2005. The trial court issued its judgment on May 27, 2015. The trial court found RBH and two other Canadian manufacturers liable and awarded a total of CAD 131 million (approximately $102.3 million) in punitive damages, allocating CAD 46 million (approximately $36 million) to RBH. The trial court estimated the size of the addiction class at 918,000 members but declined to award compensatory damages to the addiction class because the evidence did not establish the claims with sufficient accuracy. The trial court found that a claims process to allocate the awarded punitive damages to individual class members would be too expensive and difficult to administer. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court’s findings of liability and the total amount of punitive damages awarded allocating CAD 57 million including interest (approximately $44.5 million) to RBH. See the Blais description above and Note 20. Deconsolidation of RBH below for further detail concerning the security order pertaining to both Létourneau and Blais cases and the impact of the decision on PMI’s financial statements. RBH and PMI believe the findings of liability and damages in both Létourneau and the Blais cases were incorrect and in contravention of applicable law on several grounds including the following: (i) defendants had no obligation to warn class members who knew, or should have known, of the risks of smoking; (ii) defendants cannot be liable to class members who would have smoked regardless of what warnings were given; and (iii) defendants cannot be liable to all class members given the individual differences between class members. In the third class action pending in Canada, Kunta v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Winnipeg, Canada , filed June 12, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic obstructive pulmonary disease (“COPD”), severe asthma, and mild reversible lung disease resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, as well as restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. In the fourth class action pending in Canada, Adams v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Saskatchewan, Canada , filed July 10, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and COPD resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who have smoked a minimum of 25,000 cigarettes and have allegedly suffered, or suffer, from COPD, emphysema, heart disease, or cancer, as well as restitution of profits. In the fifth class action pending in Canada, Semple v. Canadian Tobacco Manufacturers' Council, et al., The Supreme Court (trial court), Nova Scotia, Canada , filed June 18, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges his own addiction to tobacco products and COPD resulting from the use of tobacco products. He is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, as well as restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. In the sixth class action pending in Canada, Dorion v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Alberta, Canada, filed June 15, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic bronchitis and severe sinus infections resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. To date, we, our subsidiaries, and our indemnitees have not been properly served with the complaint. In the seventh class action pending in Canada, McDermid v. Imperial Tobacco Canada Limited, et al., Supreme Court, British Columbia, Canada , filed June 25, 2010, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges his own addiction to tobacco products and heart disease resulting from the use of tobacco products. He is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who were alive on June 12, 2007, and who suffered from heart disease allegedly caused by smoking, their estates, dependents and family members, plus disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. In the eighth class action pending in Canada, Bourassa v. Imperial Tobacco Canada Limited, et al., Supreme Court, British Columbia, Canada , filed June 25, 2010, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, the heir to a deceased smoker, alleges that the decedent was addicted to tobacco products and suffered from emphysema resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who were alive on June 12, 2007, and who suffered from chronic respiratory diseases allegedly caused by smoking, their estates, dependents and family members, plus disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. In December 2014, plaintiff filed an amended statement of claim. In the ninth class action pending in Canada, Suzanne Jacklin v. Canadian Tobacco Manufacturers' Council, et al., Ontario Superior Court of Justice, filed June 20, 2012, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and COPD resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who have smoked a minimum of 25,000 cigarettes and have allegedly suffered, or suffer, from COPD, heart disease, or cancer, as well as restitution of profits. Health Care Cost Recovery Litigation — Canada In the first health care cost recovery case pending in Canada, Her Majesty the Queen in Right of British Columbia v. Imperial Tobacco Limited, et al., Supreme Court, British Columbia, Vancouver Registry, Canada, filed January 24, 2001, we, RBH, our indemnitee (PM USA), and other members of the industry are defendants. The plaintiff, the government of the province of British Columbia, brought a claim based upon legislation enacted by the province authorizing the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, resulting from a “tobacco related wrong.” In the second health care cost recovery case filed in Canada, Her Majesty the Queen in Right of New Brunswick v. Rothmans Inc., et al., Court of Queen's Bench of New Brunswick, Trial Court, New Brunswick, Fredericton, Canada, filed March 13, 2008, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of New Brunswick based on legislation enacted in the province. This legislation is similar to the law introduced in British Columbia that authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the third health care cost recovery case filed in Canada, Her Majesty the Queen in Right of Ontario v. Rothmans Inc., et al., Ontario Superior Court of Justice, Toronto, Canada , filed September 29, 2009, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Ontario based on legislation enacted in the province. This legislation is similar to the laws introduced in British Columbia and New Brunswick that authorize the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the fourth health care cost recovery case filed in Canada, Attorney General of Newfoundland and Labrador v. Rothmans Inc., et al., Supreme Court of Newfoundland and Labrador, St. Johns, Canada , filed February 8, 2011, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Newfoundland and Labrador based on legislation enacted in the province that is similar to the laws introduced in British Columbia, New Brunswick and Ontario. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the fifth health care cost recovery case filed in Canada, Attorney General of Quebec v. Imperial Tobacco Limited, et al., Superior Court of Quebec, Canada , filed June 8, 2012, we, RBH, our indemnitee (PM USA), and other members of the industry are defendants. The claim was filed by the government of the province of Quebec based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the sixth health care cost recovery case filed in Canada, Her Majesty in Right of Alberta v. Altria Group, Inc., et al., Supreme Court of Queen's Bench Alberta, Canada , filed June 8, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Alberta based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the seventh health care cost recovery case filed in Canada, Her Majesty the Queen in Right of the Province of Manitoba v. Rothmans, Benson & Hedges, Inc., et al., The Queen's Bench, Winnipeg Judicial Centre, Canada , filed May 31, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Manitoba based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the eighth health care cost recovery case filed in Canada, The Government of Saskatchewan v. Rothmans, Benson & Hedges Inc., et al., Queen's Bench, Judicial Centre of Saskatchewan, Canada , filed June 8, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Saskatchewan based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the ninth health care cost recovery case filed in Canada, Her Majesty the Queen in Right of the Province of Prince Edward Island v. Rothmans, Benson & Hedges Inc., et al., Supreme Court of Prince Edward Island (General Section), Canada , filed September 10, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Prince Edward Island based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the tenth health care cost recovery case filed in Canada, Her Majesty the Queen in Right of the Province of Nova Scotia v. Rothmans, Benson & Hedges Inc., et al., Supreme Court of Nova Scotia, Canada , filed January 2, 2015, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Nova Scotia based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” __________ The table below lists the number of tobacco-related cases pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of February 5, 2021, February 3, 2020 and February 4, 2019:¹ Type of Case Number of Cases Pending as of February 5, 2021 Number of Cases Pending as of February 3, 2020 Number of Cases Pending as of February 4, 2019 Individual Smoking and Health Cases 43 50 55 Smoking and Health Class Actions 9 10 10 Health Care Cost Recovery Actions 17 17 16 Label-Related Class Actions — — 1 Individual Label-Related Cases 5 5 7 Public Civil Actions 2 2 2 Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 510 Smoking and Health, Label-Related, Health Care Cost Recovery, and Public Civil Actions in which we and/or one of our subsidiaries and/or indemnitees were a defendant have been terminated in our favor. Thirteen cases have had decisions in favor of plaintiffs. Ten of these cases have subsequently reached final resolution in our favor and three remain on appeal. The table below lists the verdict and significant post-trial developments in the three pending cases where a verdict was returned in favor of the plaintiff: ______ ¹ Includes cases pending in Canada. Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $12.1 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.4 billion)). The trial court awarded CAD 90,000 (approximately $70,250) in punitive damages, allocating CAD 30,000 (approximately $23,400) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $781 million) of the compensatory damage award, CAD 200 million (approximately $156.1 million) of which is our subsidiary’s portion, into a trust within 60 days. In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “ Stayed Litigation — Canada ” for further detail.) Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Cecilia Létourneau Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Létourneau class on liability and awarded a total of CAD 131 million (approximately $102.3 million) in punitive damages, allocating CAD 46 million (approximately $36 million) to RBH. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “ Stayed Litigation — Canada ” for further detail.) Date Location of Type of Verdict Post-Trial August 5, 2016 Argentina/Hugo Lespada Individual Action On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $1,252), plus interest, in compensatory and moral damages. The trial court found that our subsidiary failed to warn plaintiff of the risk of becoming addicted to cigarettes. On August 23, 2016, our subsidiary filed its notice of appeal. On October 31, 2017, the Civil and Commercial Court of Appeals of Mar del Plata ruled that plaintiff's claim was barred by the statute of limitations and it reversed the trial court's decision. On November 28, 2017, plaintiff filed an extraordinary appeal of the reversal of the trial court's decision to the Supreme Court of the Province of Buenos Aires. Pending claims related to tobacco products generally fall within the following categories: Smoking and Health Litigation: These cases primarily allege personal injury and are brought by individual plaintiffs or on behalf of a class or purported class of individual plaintiffs. Plaintiffs' allegations of liability in these cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, breach of express and implied warranties, violations of deceptive trade practice laws and consumer protection statutes. Plaintiffs in these cases seek various forms of relief, including compensatory and other damages, and injunctive and equitable relief. Defenses raised in these cases include licit activity, failure to state a claim, lack of defect, lack of proximate cause, assumption of the risk, contributory negligence, and statute of limitations. As of February 5, 2021, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 43 cases brought by individual plaintiffs in Argentina (31), Brazil (3), Canada (2), Chile (2 ), China (1), It aly (1), the Philippines (1), Turkey (1) and Scotland (1), compared with 50 such cases on February 3, 2020, and 55 cases on February 4, 2019; and • 9 cases brought on behalf of classes of individual plaintiffs in Canada, compared with 10 such cases on February 3, 2020 and 10 such cases on February 4, 2019. The class actions pending in Canada are described above under the caption “ Smoking and Health Litigation — Canada. ” In a class action in Brazil, The Smoker Health Defense Association (ADESF) v. Souza Cruz, S.A. and Philip Morris Marketing, S.A., Nineteenth Lower Civil Court of the Central Courts of the Judiciary District of São Paulo, Brazil , filed July 25, 1995, our subsidiary and another member of the industry are defendants. The plaintiff, a consumer organization, sought damages for all addicted smokers and former smokers, and injunctive relief. In 2004, the trial court found defendants liable without hearing evidence and awarded “moral damages” of R$1,000 (approximately $186) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not award actual damages, which were to be assessed in the second phase of the case. The size of the class was not estimated. Defendants appealed to the São Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. In February 2015, the appellate court unanimously dismissed plaintiff's appeal. In September 2015, plaintiff appealed to the Superior Court of Justice. In February 2017, the Chief Justice of the Superior Court of Justice denied plaintiff's appeal. Plaintiff filed a further appeal. In August 2020, the Superior Court of Justice confirmed the denial of plaintiff's appeal finally dismissing the plaintiff's claim. Health Care Cost Recovery Litigation: These cases, brought by governmental and non-governmental plaintiffs, seek reimbursement of health care cost expenditures allegedly caused by tobacco products. Plaintiffs' allegations of liability in these cases are based on various theories of recovery including unjust enrichment, negligence, negligent design, strict liability, breach of express and implied warranties, violation of a voluntary undertaking or special duty, fraud, negligent misrepresentation, conspiracy, public nuisance, defective product, failure to warn, sale of cigarettes to minors, and claims under statutes governing competition and deceptive trade practices. Plaintiffs in these cases seek various forms of relief including compensatory and other damages, and injunctive and equitable relief. Defenses raised in these cases include lack of proximate cause, remoteness of injury, failure to state a claim, adequate remedy at law, “unclean hands” (namely, that plai |
Sale of Accounts Receivable
Sale of Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Sale of Accounts Receivable [Abstract] | |
Sale of Accounts Receivable | Sale of Accounts Receivable: To mitigate risk and enhance cash and liquidity management PMI sells trade receivables to unaffiliated financial institutions. These arrangements allow PMI to sell, on an ongoing basis, certain trade receivables without recourse. The trade receivables sold are generally short-term in nature and are removed from the consolidated balance sheets. PMI sells trade receivables under two types of arrangements, servicing and non-servicing. For servicing arrangements, PMI continues to service the sold trade receivables on an administrative basis and does not act on behalf of the unaffiliated financial institutions. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material for the years ended December 31, 2020 and 2019. Under the non-servicing arrangements, PMI does not provide any administrative support or servicing after the trade receivables have been sold to the unaffiliated financial institutions. |
Asset Impairment and Exit Costs
Asset Impairment and Exit Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs | Asset Impairment and Exit Costs: Organizational Design Optimization As part of PMI’s transformation to a smoke-free future, PMI seeks to optimize its organizational design, which includes the elimination, relocation and outsourcing of certain operations center and centralized activities. In January 2020, PMI commenced a multi-phase restructuring project in Switzerland. PMI initiated the employee consultation procedures, as required under Swiss law, for the impacted employees. In 2020, the consultation procedures for two phases were completed. The third phase commenced in January 2021 and is expected to impact approximately 230 positions. Until the consultation process for the third phase is concluded, such phase is not considered probable (under U.S. GAAP), and the total potential costs cannot be determined. As a result, no related costs were recorded for the year ended December 31, 2020 related to the third phase of the restructuring project. Additionally, PMI launched a voluntary separation program in Switzerland for certain eligible employees and announced the outsourcing of certain activities in the United States and Poland. These activities are expected to impact approximately 600 positions in total, excluding the third phase of the project in Switzerland, that will be either eliminated, relocated or outsourced. For the year ended December 31, 2020, PMI recorded pre-tax asset impairment and exit costs of $149 million related to the organizational design optimization. The amounts related to the potential pension settlement accounting impact of the restructuring, which could be significant, have not been reflected in 2020 as the thresholds for accounting were not exceeded by December 31, 2020. Global Manufacturing Infrastructure Optimization In light of declining PMI cigarette volumes resulting from lower total industry volumes and the shift to smoke-free alternatives, PMI continues to optimize its global manufacturing infrastructure. During 2019, PMI recorded asset impairment and exit costs related to plant closures in Argentina, Colombia, Germany and Pakistan as part of its global manufacturing infrastructure optimization. Germany On November 4, 2019, PMI announced that, as part of its global manufacturing infrastructure optimization, its German affiliate, Philip Morris Manufacturing GmbH ("PMMG"), reached an agreement with employee representatives to end cigarette production in its factory in Berlin, Germany, by January 1, 2020. As a result of this agreement, during 2019, PMI recorded pre-tax asset impairment and exit costs of $342 million in the European Union segment. This amount included pension and employee separation costs of $251 million, which will be paid in cash, and asset impairment costs of $91 million, primarily related to machinery and equipment, which are non-cash charges. Other During 2019, PMI also recorded pre-tax asset impairment and exit costs of $80 million as part of its global manufacturing infrastructure optimization. These costs were related to cigarette plant closures in Argentina ($15 million), Colombia ($45 million) and Pakistan ($20 million). The charges were reflected in the Latin America & Canada segment (Argentina and Colombia) and the South & Southeast Asia segment (Pakistan). Asset Impairment and Exit Costs by Segment During 2020 and 2019, PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) 2020 2019 Separation programs: (1) European Union $ 53 $ 251 Eastern Europe 14 — Middle East & Africa 18 — South & Southeast Asia 22 3 East Asia & Australia 25 — Latin America & Canada 9 49 Total separation programs 141 303 Asset impairment charges (1) European Union 4 91 Eastern Europe 1 — Middle East & Africa 1 — South & Southeast Asia 1 17 East Asia & Australia 1 — Latin America & Canada — 11 Total asset impairment charges 8 119 Asset impairment and exit costs $ 149 $ 422 (1) Organizational design optimization pre-tax charges in 2020 were allocated across all operating segments. The total pre-tax asset impairment and exit costs above were included in marketing, administration and research costs on the consolidated statements of earnings. During 2018, PMI did not incur asset impairment and exit costs. Movement in Exit Cost Liabilities The movement in exit cost liabilities for the year ended December 31, 2020 was as follows: (in millions) Liability balance, January 1, 2020 $ 191 Charges, net 141 Cash spent (163) Currency/other 11 Liability balance, December 31, 2020 $ 180 Future cash payments for exit costs incurred to date are anticipated to be substantially paid by the end of 2022, with approximately $150 million expected to be paid in 2021. |
Deconsolidation of RBH
Deconsolidation of RBH | 12 Months Ended |
Dec. 31, 2020 | |
Deconsolidation [Abstract] | |
Deconsolidation of RBH | Deconsolidation of RBH: As discussed in Note 17. Contingencies, following the March 1, 2019, judgment of the Court of Appeal of Québec in two class action lawsuits against PMI's Canadian subsidiary, Rothmans, Benson & Hedges Inc. ("RBH"), PMI recorded in its consolidated results a pre-tax charge of $194 million, representing $142 million net of tax, in the first quarter of 2019. This pre-tax Canadian tobacco litigation-related expense was included in marketing, administration and research costs on PMI's consolidated statement of earnings for the year ended December 31, 2019. The charge reflects PMI’s assessment of the portion of the judgment that represents probable and estimable loss prior to the deconsolidation of RBH and corresponds to the trust account deposit required by the judgment. RBH’s share of the deposit is approximately CAD 257 million. On March 22, 2019, RBH obtained an initial order from the Ontario Superior Court of Justice granting it protection under the Companies’ Creditors Arrangement Act ("CCAA"), which is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course with minimal disruption to its customers, suppliers and employees. The administration of the CCAA process, principally relating to the powers provided to the court and the court appointed monitor, removes certain elements of control of the business from both PMI and RBH. As a result, PMI has determined that it no longer has a controlling financial interest over RBH as defined in ASC 810 (Consolidation), and PMI deconsolidated RBH as of the date of the CCAA filing. PMI has also determined that it does not exert "significant influence" over RBH as that term is defined in ASC 323 (Investments-Equity Method and Joint Ventures). Therefore, as of March 22, 2019, PMI accounted for its continuing investment in RBH in accordance with ASC 321 (Investments-Equity Securities) as an equity security, without readily determinable fair value. Following the deconsolidation, the carrying value of assets and liabilities of RBH was removed from the consolidated balance sheet of PMI, and the continuing investment in RBH was recorded at fair value at the date of deconsolidation. The total amount deconsolidated from PMI’s balance sheet was $3,519 million, including $1,323 million of cash, $1,463 million of goodwill, $529 million of accumulated other comprehensive earnings, primarily related to historical currency translation and $204 million of other assets and liabilities, net. While PMI is accounting for its investment in RBH as an equity security, PMI would recognize dividends as income upon receipt. However, while it remains under creditor protection, RBH does not anticipate paying dividends. The fair value of PMI’s continuing investment in RBH of $3,280 million was determined at the date of deconsolidation, recorded within equity investments and is assessed for impairment on an ongoing basis. The estimated fair value of the underlying business was determined based on an income approach using a discounted cash flow analysis, as well as a market approach for certain contingent liabilities. The information used in the estimate includes observable inputs, primarily a discount rate of 8%, a terminal growth rate of 2.5% and information about total tobacco market size in Canada and RBH’s share of the market, as well as unobservable inputs such as operating budgets and strategic plans, various inflation scenarios, estimated shipment volumes, and expected product pricing and projected margins. The difference between the carrying value of the assets and liabilities of RBH that were deconsolidated and the fair value of the continuing investment, as determined at the date of deconsolidation, was $239 million, before tax, and this loss on deconsolidation is reflected within marketing, administration and research costs on PMI’s consolidated statement of earnings for the year ended December 31, 2019. PMI also recorded a tax benefit of $49 million within the provision for income taxes for the year ended December 31, 2019, related to the reversal of a deferred tax liability on unremitted earnings of RBH. RBH is party to transactions with PMI and its consolidated subsidiaries entered into in the normal course of business; these transactions include royalty payments and recharge of various corporate expenses for services benefiting RBH. Up to the date of the CCAA filing, these transactions were eliminated on consolidation and had no impact on PMI’s consolidated statement of earnings. After deconsolidating RBH, these transactions are treated as third-party transactions in PMI’s financial statements. The amount of these related-party transactions is included within Note 4. Related Parties - Equity investments and Other. Developments in the CCAA process, including resolution through a plan of arrangement or compromise of all pending tobacco-related litigation currently stayed in Canada, as discussed in Note 17. Contingencies , could result in a material change in the fair value of PMI’s continuing investment in RBH. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases: PMI’s operating leases are principally for real estate (office space, warehouses and retail store space) and vehicles. Lease terms range from 1 year to 73 years, some of which include options to renew, which are reasonably certain to be renewed. Lease terms may also include options to terminate the lease. The exercise of a lease renewal or termination option is at PMI’s discretion. PMI’s operating leases at December 31, 2020 and 2019, were as follows: At December 31, (in millions) 2020 2019 Assets: Other assets $ 697 $ 766 Liabilities: Current Accrued liabilities - Other $ 190 $ 194 Noncurrent Income taxes and other liabilities 517 569 Total lease liabilities $ 707 $ 763 For information regarding PMI’s immaterial finance leases, see Note 7. Indebtedness . The components of PMI’s lease cost were as follows for the years ended December 31, 2020 and 2019: For the Years Ended December 31, (in millions) 2020 2019 Operating lease cost $ 237 $ 242 Short-term lease cost 49 61 Variable lease cost 31 29 Total lease cost $ 317 $ 332 Maturity of PMI’s operating lease liabilities, on an undiscounted basis, as of December 31, 2020, was as follows: (in millions) Total 2021 $ 215 2022 161 2023 110 2024 72 2025 47 Thereafter 291 Total lease payments 896 Less: Interest 189 Present value of lease liabilities $ 707 Other information related to PMI’s operating leases was as follows for the year ended December 31, 2020 and 2019: December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities in Operating cash flows $ 238 $ 240 Leased assets obtained in exchange for new operating lease liabilities $ 149 $ 221 Weighted-average remaining lease term (years) 10.1 9.6 Weighted-average discount rate (1) 4.3 % 4.4 % (1) PMI’s weighted-average discount rate is based on its estimated pre-tax cost of debt adjusted for country-specific risk. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited): 2020 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 7,153 $ 6,651 $ 7,446 $ 7,444 Gross profit $ 4,751 $ 4,472 $ 5,030 $ 4,872 Net earnings attributable to PMI $ 1,826 $ 1,947 $ 2,307 $ 1,976 Per share data: Basic EPS $ 1.17 $ 1.25 $ 1.48 $ 1.27 Diluted EPS $ 1.17 $ 1.25 $ 1.48 $ 1.27 Dividends declared $ 1.17 $ 1.17 $ 1.20 $ 1.20 2019 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,751 $ 7,699 $ 7,642 $ 7,713 Gross profit $ 4,286 $ 5,034 $ 5,037 $ 4,935 Net earnings attributable to PMI $ 1,354 $ 2,319 $ 1,896 $ 1,616 Per share data: Basic EPS $ 0.87 $ 1.49 $ 1.22 $ 1.04 Diluted EPS $ 0.87 $ 1.49 $ 1.22 $ 1.04 Dividends declared $ 1.14 $ 1.14 $ 1.17 $ 1.17 Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. Investments without readily determinable fair values, non-marketable equity securities, are measured and recorded using a measurement alternative that values the security at cost minus any impairment. All intercompany transactions and balances have been eliminated. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Depreciation | DepreciationProperty, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 15 years, and buildings and building improvements over periods up to 40 years. |
Employee benefit plans | Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. |
Fair value measurements | Fair value measurements PMI follows ASC 820, Fair Value Measurements and Disclosures with respect to assets and liabilities that are measured at fair value. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of input that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Foreign currency translation | Foreign currency translationPMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. |
Goodwill and non-amortizable intangible assets valuation | Goodwill and non-amortizable intangible assets valuationPMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. |
Hedging instruments | Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. |
Impairment of long-lived assets | Impairment of long-lived assetsPMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Impairment of investments in non-marketable equity securities and impairment of equity method investments | Impairment of investment in non-marketable equity securities Non-marketable equity securities are subject to periodic impairment reviews during which PMI considers both qualitative and quantitative factors that may have a significant impact on the investees' fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. For further details see Note 20. Deconsolidation of RBH . Impairment of equity method investments |
Income taxes | Income taxesIncome taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. PMI recognizes income taxes associated with Global Intangible Low-Taxed Income ("GILTI") taxes as current period expense rather than including these amounts in the measurement of deferred taxes. |
Inventories | Inventories Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. |
Leases | Leases PMI determines that a contract contains a lease if the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Lease expense is recognized on a straight-line basis over the lease ter m with the expense recorded in cost of sales or marketing, administration and research costs depending on the nature of the leased item. At l |
Marketing costs | Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. |
Revenue recognition | Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and other nicotine-containing products, including reduced-risk products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. |
Stock-based compensation | Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 9. Stock Plans . |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Movements in Goodwill | The movements in goodwill were as follows: (in millions) European Union Eastern Europe Middle East & Africa South & Southeast Asia East Asia & Australia Latin America & Canada Total Balance at January 1, 2019 $ 1,357 $ 303 $ 87 $ 2,795 $ 536 $ 2,111 $ 7,189 Changes due to: Currency (19) (3) 2 103 15 34 132 Deconsolidation of RBH (1,463) (1,463) Balances, December 31, 2019 1,338 300 89 2,898 551 682 5,858 Changes due to: Currency 96 17 (3) 17 8 (29) 106 Balances, December 31, 2020 $ 1,434 $ 317 $ 86 $ 2,915 $ 559 $ 653 $ 5,964 |
Schedule of Amortizable Intangible Assets | Details of other intangible assets were as follows: December 31, 2020 December 31, 2019 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,289 $ 1,289 $ 1,319 $ 1,319 Amortizable intangible assets: Trademarks 13 years 1,233 $ 594 639 1,217 $ 526 691 Distribution networks 7 years 115 78 37 113 72 41 Other* 8 years 104 50 54 106 44 62 Total other intangible assets $ 2,741 $ 722 $ 2,019 $ 2,755 $ 642 $ 2,113 |
Schedule of Non-Amortizable Intangible Assets | Details of other intangible assets were as follows: December 31, 2020 December 31, 2019 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,289 $ 1,289 $ 1,319 $ 1,319 Amortizable intangible assets: Trademarks 13 years 1,233 $ 594 639 1,217 $ 526 691 Distribution networks 7 years 115 78 37 113 72 41 Other* 8 years 104 50 54 106 44 62 Total other intangible assets $ 2,741 $ 722 $ 2,019 $ 2,755 $ 642 $ 2,113 |
Related Parties - Equity Inve_2
Related Parties - Equity Investments and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Activity with Related Parties - Equity Investments and Other | PMI’s net revenues and expenses with the above related parties were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Net revenues Megapolis Group $ 2,174 $ 2,236 $ 1,994 Other 1,059 1,015 720 Net revenues (a) $ 3,233 $ 3,251 $ 2,714 Expenses: Other $ 51 $ 63 $ 21 Expenses $ 51 $ 63 $ 21 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: At December 31, (in millions) 2020 2019 Receivables: Megapolis Group $ 209 $ 375 Other 156 148 Receivables $ 365 $ 523 Payables: Other $ 13 $ 20 Payables $ 13 $ 20 |
Product Warranty (Tables)
Product Warranty (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Product Warranty | At December 31, 2020 and December 31, 2019, these amounts were as follows: At December 31, (in millions) 2020 2019 Balance at beginning of period $ 140 $ 67 Changes due to: Warranties issued 242 303 Settlements (254) (230) Currency/Other 9 — Balance at end of period $ 137 $ 140 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | At December 31, 2020 and 2019, PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2020 December 31, 2019 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ — — % $ — — % Bank loans 244 5.3 338 5.5 $ 244 $ 338 |
Long-Term Debt | At December 31, 2020 and 2019, PMI’s long-term debt consisted of the following: December 31, (in millions) 2020 2019 U.S. dollar notes, 0.875% to 6.375% (average interest rate 3.199%), due through 2044 $ 21,221 $ 19,783 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.983%), due through 2039 9,253 9,822 Swiss franc notes, 1.625% to 2.000% (average interest rate 1.830%), due through 2024 622 899 Other (average interest rate 3.187%), due through 2025 (a) 196 203 Carrying value of long-term debt 31,292 30,707 Less current portion of long-term debt 3,124 4,051 $ 28,168 $ 26,656 |
Schedule of Fair Value of Outstanding Long-Term Debt, Excluding Finance Leases | At December 31, 2020 and 2019 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: December 31, (in millions) 2020 2019 Level 1 $ 35,227 $ 32,821 Level 2 177 167 |
Debt Issuances Outstanding | PMI’s debt issuances outstanding at December 31, 2020, were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $750 1.875% February 2016 February 2021 U.S. dollar notes $350 4.125% May 2011 May 2021 U.S. dollar notes $750 2.900% November 2011 November 2021 U.S. dollar notes $500 2.625% February 2017 February 2022 U.S. dollar notes $750 2.375% August 2017 August 2022 U.S. dollar notes $750 2.500% August 2012 August 2022 U.S. dollar notes $750 2.500% November 2017 November 2022 U.S. dollar notes $600 2.625% March 2013 March 2023 U.S. dollar notes $500 2.125% May 2016 May 2023 U.S. dollar notes $750 1.125% May 2020 May 2023 U.S. dollar notes $500 3.600% November 2013 November 2023 U.S. dollar notes $900 2.875% May 2019 May 2024 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $750 1.500% May 2020 May 2025 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $750 0.875% November 2020 May 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $500 3.125% November 2017 March 2028 U.S. dollar notes $750 3.375% May 2019 August 2029 U.S. dollar notes $750 2.100% May 2020 May 2030 U.S. dollar notes $750 1.750% November 2020 November 2030 U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (a) $500 4.250% May 2016 November 2044 EURO notes (b) €750 (approximately $1,029) 1.875% March 2014 March 2021 EURO notes (b) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (b) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (b) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (b) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (b) €500 (approximately $557) 0.125% August 2019 August 2026 EURO notes (b) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (b) €750 (approximately $835) 0.800% August 2019 August 2031 EURO notes (b) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (b) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (b) €500 (approximately $582) 1.875% November 2017 November 2037 EURO notes (b) €750 (approximately $835) 1.450% August 2019 August 2039 Swiss franc notes (b) CHF300 (approximately $335) 2.000% December 2011 December 2021 Swiss franc notes (b) CHF250 (approximately $283) 1.625% May 2014 May 2024 (a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. |
Schedule of Maturities of Long-term Debt | Aggregate maturities of long-term debt are as follows: (in millions) 2021 $ 3,124 2022 2,760 2023 2,362 2024 3,442 2025 2,424 2026-2030 7,206 2031-2035 1,535 Thereafter 8,699 31,552 Debt discounts (260) Total long-term debt $ 31,292 |
Schedule of Committed Credit Facilities | At December 31, 2020, PMI’s total committed credit facilities were as follows: Type Committed 364-day revolving credit, expiring February 2, 2021 $ 2.0 Multi-year revolving credit, expiring October 1, 2022 3.5 Multi-year revolving credit, expiring February 10, 2025 2.0 Total facilities $ 7.5 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Common Stock | Shares of authorized common stock are 6.0 billion; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2018 2,109,316,331 (556,098,569) 1,553,217,762 Issuance of stock awards 1,361,959 1,361,959 Balances, December 31, 2018 2,109,316,331 (554,736,610) 1,554,579,721 Issuance of stock awards 1,314,942 1,314,942 Balances, December 31, 2019 2,109,316,331 (553,421,668) 1,555,894,663 Issuance of stock awards 1,479,068 1,479,068 Balances, December 31, 2020 2,109,316,331 (551,942,600) 1,557,373,731 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Activity for Restricted Stock | During 2020, the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2020 3,725,870 $ 89.85 Granted 1,728,680 85.79 Vested (1,206,871) 96.91 Forfeited (149,439) 85.50 Balance at December 31, 2020 4,098,240 $ 86.21 |
Schedule of Weighted Average Grant Date Fair Value and Compensation Expense Related to Share-Based Awards | During the years ended December 31, 2020, 2019 and 2018, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2020 $ 148 $ 85.79 $ 129 2019 $ 133 $ 77.28 $ 118 2018 $ 129 $ 100.19 $ 114 During the years ended December 31, 2020, 2019 and 2018, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) PSU Grant Date Fair Value Subject to Other Performance Factors PSU Grant Date Fair Value Subject to TSR Performance Factor Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2020 $ 28 $ 86.04 $ 28 $ 80.36 $ 38 2019 $ 30 $ 77.23 $ 21 $ 83.59 $ 54 2018 $ 20 $ 100.69 $ 24 $ 118.98 $ 24 During the years ended December 31, 2020, and 2019, share and fair value information for PMI PSU awards that vested were as follows: (dollars in millions) Shares of PSU Awards that Vested Grant Date Fair Value of Vested Shares of PSU Awards Total Fair Value of PSU Awards that Vested 2020 343,806 $ 35 $ 30 2019 330,616 $ 32 $ 28 |
Schedule of Share and Fair Value Information for RSU Awards that Vested | During the years ended December 31, 2020, 2019 and 2018, share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2020 1,206,871 $ 117 $ 102 2019 1,126,057 $ 101 $ 95 2018 1,451,876 $ 121 $ 149 |
Activity for Performance Share Unit Awards | During 2020, the activity for PSU awards was as follows: Number of Grant Date Grant Date (Per Share) (Per Share) Balance at January 1, 2020 1,347,460 $ 88.19 $ 107.61 Granted 671,220 86.04 80.36 Vested (343,806) 85.72 128.72 Forfeited (202,074) 95.66 116.67 Balance at December 31, 2020 1,472,800 $ 86.76 $ 90.48 |
Schedule of Assumptions Used for PSU | The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 2019 2018 Risk-free interest rate (a) 1.4 % 2.4 % 2.3 % Expected volatility 23.5 % (b) 21.4 % (b) 19.6 % (c) (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. (c) Determined using a weighted-average of historical and implied volatility. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2020 2019 2018 Net earnings attributable to PMI $ 8,056 $ 7,185 $ 7,911 Less distributed and undistributed earnings attributable to share-based payment awards 20 17 16 Net earnings for basic and diluted EPS $ 8,036 $ 7,168 $ 7,895 Weighted-average shares for basic EPS 1,557 1,555 1,555 Plus contingently issuable performance stock units (PSUs) 1 1 — Weighted-average shares for diluted EPS 1,558 1,556 1,555 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings Before Income Taxes and Provision For Income Taxes | Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Earnings before income taxes $ 10,953 $ 9,872 $ 10,671 Provision for income taxes: United States federal and state: Current $ (80) $ 17 $ 120 Deferred 53 24 (113) Total United States (27) 41 7 Outside United States: Current 2,600 2,417 2,425 Deferred (196) (165) 13 Total outside United States 2,404 2,252 2,438 Total provision for income taxes $ 2,377 $ 2,293 $ 2,445 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2020 2019 2018 Balance at January 1, $ 63 $ 56 $ 145 Additions based on tax positions related to the current year 11 10 10 Additions for tax positions of previous years 1 1 15 Reductions for tax positions of prior years (4) (2) (94) Reductions due to lapse of statute of limitations (1) (1) (3) Settlements — — (19) Other 2 (1) 2 Balance at December 31, $ 72 $ 63 $ 56 |
Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties | Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2020 December 31, 2019 December 31, 2018 Unrecognized tax benefits $ 72 $ 63 $ 56 Accrued interest and penalties 17 16 12 Tax credits and other indirect benefits (9) (12) (14) Liability for tax contingencies $ 80 $ 67 $ 54 |
Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: Foreign rate differences 0.6 1.8 1.3 Dividend repatriation cost 0.4 (0.5) 2.5 Global intangible low-taxed income 0.1 1.4 1.2 U.S. state taxes 0.2 0.7 (1.1) Foreign derived intangible income (0.6) (1.2) (1.1) Other — — (0.9) Effective tax rate 21.7 % 23.2 % 22.9 % |
Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2020 2019 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 225 $ 184 Accrued pension costs 720 620 Inventory 232 176 Accrued liabilities 182 130 Net operating loss carryforwards and tax credits 351 486 Foreign exchange 27 — Other 124 101 Total deferred income tax assets 1,861 1,697 Less: valuation allowance (250) (304) Deferred income tax assets, net of valuation allowance 1,611 1,393 Deferred income tax liabilities: Trade names (374) (469) Property, plant and equipment (200) (180) Unremitted earnings (311) (243) Foreign exchange — (256) Total deferred income tax liabilities (885) (1,148) Net deferred income tax assets $ 726 $ 245 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Data | Net revenues by segment were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Net revenues: European Union $ 10,702 $ 9,817 $ 9,298 Eastern Europe 3,378 3,282 2,921 Middle East & Africa 3,088 4,042 4,114 South & Southeast Asia 4,396 5,094 4,656 East Asia & Australia 5,429 5,364 5,580 Latin America & Canada 1,701 2,206 3,056 Net revenues $ 28,694 $ 29,805 $ 29,625 PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Combustible products: European Union $ 8,053 $ 8,093 $ 8,433 Eastern Europe 2,250 2,438 2,597 Middle East & Africa 3,031 3,721 3,732 South & Southeast Asia 4,395 5,094 4,656 East Asia & Australia 2,468 2,693 3,074 Latin America & Canada 1,670 2,179 3,037 Total combustible products $ 21,867 $ 24,218 $ 25,529 Reduced-risk products: European Union $ 2,649 $ 1,724 $ 865 Eastern Europe 1,128 844 324 Middle East & Africa 57 321 382 South & Southeast Asia 1 — — East Asia & Australia 2,961 2,671 2,506 Latin America & Canada 31 27 19 Total reduced-risk products $ 6,827 $ 5,587 $ 4,096 Total PMI net revenues $ 28,694 $ 29,805 $ 29,625 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Operating income by segment were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Operating income: European Union $ 5,098 $ 3,970 $ 4,105 Eastern Europe 871 547 902 Middle East & Africa 1,026 1,684 1,627 South & Southeast Asia 1,709 2,163 1,747 East Asia & Australia 2,400 1,932 1,851 Latin America & Canada 564 235 1,145 Operating income $ 11,668 $ 10,531 $ 11,377 |
Depreciation Expense, Capital Expenditures, and Long-Lived Assets by Segment | Other segment data were as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Depreciation expense: European Union $ 266 $ 254 $ 269 Eastern Europe 173 147 101 Middle East & Africa 75 90 105 South & Southeast Asia 137 142 154 East Asia & Australia 188 185 173 Latin America & Canada 58 69 94 897 887 896 Other 11 11 11 Total depreciation expense $ 908 $ 898 $ 907 For the Years Ended December 31, (in millions) 2020 2019 2018 Capital expenditures: European Union $ 326 $ 466 $ 813 Eastern Europe 88 132 136 Middle East & Africa 22 35 65 South & Southeast Asia 115 100 129 East Asia & Australia 13 67 215 Latin America & Canada 36 52 74 600 852 1,432 Other 2 — 4 Total capital expenditures $ 602 $ 852 $ 1,436 At December 31, (in millions) 2020 2019 2018 Long-lived assets: European Union $ 4,500 $ 4,275 $ 4,216 Eastern Europe 668 774 547 Middle East & Africa 375 369 362 South & Southeast Asia 1,348 1,361 1,297 East Asia & Australia 807 829 781 Latin America & Canada 433 478 779 Total long-lived assets 8,131 8,086 7,982 Other 1,001 516 664 Total property, plant and equipment, net and Other assets $ 9,132 $ 8,602 $ 8,646 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Other Employee Benefit Costs | Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2020, 2019 and 2018: (in millions) 2020 2019 2018 Net pension costs (income) $ (14) $ (18) $ (51) Net postemployment costs 103 100 80 Net postretirement costs 8 7 12 Total pension and other employee benefit costs $ 97 $ 89 $ 41 |
Change in Benefit Obligations | The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation and net amount accrued for PMI's postretirement health care plans, at December 31, 2020 and 2019, were as follows: Pension (1) Postretirement (in millions) 2020 2019 2020 2019 Benefit obligation at January 1 $ 10,612 $ 9,152 $ 190 $ 209 Service cost 268 214 2 2 Interest cost 68 118 6 7 Benefits paid (2) (356) (333) (7) (8) Employee contributions (2) 130 127 — — Settlement, curtailment and plan amendment (117) 50 Actuarial losses (gains) 653 1,430 5 27 Currency 992 29 3 — Deconsolidation of RBH — (166) — (42) Other (2) (7) (9) (1) (5) Benefit obligation at December 31, 12,243 10,612 198 190 Fair value of plan assets at January 1, 7,928 6,888 Actual return on plan assets 206 1,211 Employer contributions 102 200 Employee contributions (2) 130 127 Benefits paid (2) (356) (333) Settlement (16) — Currency 752 7 Deconsolidation of RBH — (172) Fair value of plan assets at December 31, 8,746 7,928 Net pension and postretirement liability recognized at December 31, $ (3,497) $ (2,684) $ (198) $ (190) (1) Primarily non-U.S. based defined benefit retirement plans. |
Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheets | At December 31, 2020 and 2019, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2020 2019 2020 2019 Other assets $ 43 $ 43 Accrued liabilities — employment costs (26) (23) $ (8) $ (8) Long-term employment costs (3,514) (2,704) (190) (182) $ (3,497) $ (2,684) $ (198) $ (190) |
Schedule of Assumptions Used | The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2020 2019 2020 2019 Discount rate 0.56 % 0.83 % 2.84 % 3.28 % Rate of compensation increase 1.79 1.82 Interest crediting rate 3.20 3.20 Health care cost trend rate assumed for next year 6.21 6.21 Ultimate trend rate 4.73 5.09 Year that rate reaches the ultimate trend rate 2029 2023 The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2020 2019 2018 2020 2019 2018 Discount rate - service cost 1.25 % 2.14 % 1.92 % 3.28 % 3.97 % 3.79 % Discount rate - interest cost 0.67 1.35 1.25 3.28 3.97 3.79 Expected rate of return on plan assets 4.59 4.70 4.76 Rate of compensation increase 1.82 1.86 1.65 Interest crediting rate 3.20 3.40 3.40 Health care cost trend rate 6.21 6.17 6.17 |
Components of Net Periodic Benefit Cost | Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2020, 2019 and 2018: Pension Postretirement (in millions) 2020 2019 2018 2020 2019 2018 Service cost $ 268 $ 214 $ 210 $ 2 $ 2 $ 4 Interest cost 68 118 109 6 7 9 Expected return on plan assets (353) (328) (349) — — — Amortization: Net losses 265 189 172 2 — 4 Prior service cost 1 (1) 2 — — (1) Net transition obligation 1 — — — — — Settlement and curtailment 4 4 15 — — — Net periodic pension and postretirement costs $ 254 $ 196 $ 159 $ 10 $ 9 $ 16 |
Fair Value of Pension Plan Assets | The fair value of PMI’s pension plan assets at December 31, 2020 and 2019, by asset category was as follows: Asset Category At December 31, 2020 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 324 $ 324 Equity securities: U.S. securities 175 175 International securities 605 605 Investment funds (a) 6,811 5,206 $ 1,605 International government bonds 225 149 76 Corporate bonds 292 292 Other 7 7 Total assets in the fair value hierarchy $ 8,439 $ 6,758 $ 1,681 $ — Investment funds measured at net asset value (b) 307 Total assets $ 8,746 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 63% are invested in U.S. and international equities; 16% are invested in U.S. and international government bonds; 12% are invested in real estate, and 9% are invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Asset Category At December 31, 2019 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 276 $ 276 Equity securities: U.S. securities 170 170 International securities 563 563 Investment funds (a) 6,125 4,625 $ 1,500 International government bonds 197 137 60 Corporate bonds 282 282 Other 6 6 Total assets in the fair value hierarchy $ 7,619 $ 6,059 $ 1,560 $ — Investment funds measured at net asset value (b) 309 Total assets $ 7,928 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 63% were invested in U.S. and international equities; 16% were invested in U.S. and international government bonds; 12% were invested in real estate and other money markets, and 9% were invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Estimated Future Benefit Payments | The estimated future benefit payments from PMI pension plans at December 31, 2020, are as follows: (in millions) 2021 $ 401 2022 383 2023 387 2024 390 2025 399 2026 - 2030 2,226 |
Amounts Recorded in Accumulated Other Comprehensive Losses | The amounts recorded in accumulated other comprehensive losses at December 31, 2020, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (4,147) $ (64) $ (839) $ (5,050) Prior service cost 22 2 (22) 2 Net transition obligation (3) — — (3) Deferred income taxes 570 24 204 798 Losses to be amortized $ (3,558) $ (38) $ (657) $ (4,253) The amounts recorded in accumulated other comprehensive losses at December 31, 2019, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,718) $ (63) $ (775) $ (4,556) Prior service cost 3 2 — 5 Net transition obligation (4) — — (4) Deferred income taxes 520 24 182 726 Losses to be amortized $ (3,199) $ (37) $ (593) $ (3,829) The amounts recorded in accumulated other comprehensive losses at December 31, 2018, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,438) $ (41) $ (702) $ (4,181) Prior service cost (27) 3 — (24) Net transition obligation (4) — — (4) Deferred income taxes 379 20 164 563 Losses to be amortized $ (3,090) $ (18) $ (538) $ (3,646) |
Movements in Other Comprehensive Earnings (Losses) | The movements in other comprehensive earnings (losses) during the year ended December 31, 2020, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 250 $ 3 $ 78 $ 331 Prior service cost 29 — — 29 Net transition obligation 1 — — 1 Other income/expense: Net losses 3 — — 3 Prior service cost 2 — — 2 Deferred income taxes (49) (1) (17) (67) 236 2 61 299 Other movements during the year: Net losses (682) (4) (142) (828) Prior service cost (12) — (22) (34) Deferred income taxes 99 1 39 139 (595) (3) (125) (723) Total movements in other comprehensive earnings (losses) $ (359) $ (1) $ (64) $ (424) The movements in other comprehensive earnings (losses) during the year ended December 31, 2019, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 198 $ 3 $ 77 $ 278 Prior service cost 32 (1) — 31 Other income/expense: Net losses 3 — — 3 Deferred income taxes (51) (1) (17) (69) 182 1 60 243 Other movements during the year: Net losses (521) (27) (150) (698) Prior service cost (2) — — (2) Deconsolidation of RBH (net of deferred income taxes) 26 1 — 27 Deferred income taxes 206 6 35 247 (291) (20) (115) (426) Total movements in other comprehensive earnings (losses) $ (109) $ (19) $ (55) $ (183) The movements in other comprehensive earnings (losses) during the year ended December 31, 2018, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 180 $ 5 $ 62 $ 247 Prior service cost — (1) — (1) Net transition obligation 1 — — 1 Other income/expense: Net losses 14 — — 14 Deferred income taxes (28) (1) (14) (43) 167 3 48 218 Other movements during the year: Net losses (1,008) 34 (147) (1,121) Prior service cost 8 — — 8 Deferred income taxes 80 (7) (8) 65 (920) 27 (155) (1,048) Total movements in other comprehensive earnings (losses) $ (753) $ 30 $ (107) $ (830) |
Additional Information (Tables)
Additional Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Additional Information [Abstract] | |
Schedule of Additional Information | For the Years Ended December 31, (in millions) 2020 2019 2018 Research and development expense $ 495 $ 465 $ 383 Advertising expense $ 637 $ 730 $ 896 Foreign currency net transaction (gains)/losses $ 90 $ (95) $ 21 Interest expense $ 728 $ 796 $ 855 Interest income (110) (226) (190) Interest expense, net $ 618 $ 570 $ 665 Total lease cost $ 317 (1) $ 332 (1) $ 312 (1) For additional information on total lease costs, see Note 21. Leases. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Contracts | The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2020 and 2019, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2020 2019 Balance Sheet Classification 2020 2019 Derivative contracts designated as hedging instruments Other current assets $ 130 $ 319 Other accrued liabilities $ 241 $ 23 Other assets 6 21 Income taxes and other liabilities 605 301 Derivative contracts not designated as hedging instruments Other current assets 46 50 Other accrued liabilities 207 70 Other assets — — Income taxes and other liabilities 57 25 Total gross amount derivatives contracts presented in the consolidated balance sheets $ 182 $ 390 $ 1,110 $ 419 Gross amounts not offset in the consolidated balance sheets Financial instruments (156) (297) (156) (297) Cash collateral received/pledged (23) (91) (892) (59) Net amount $ 3 $ 2 $ 62 $ 63 |
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings | For the years ended December 31, 2020, 2019 and 2018, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Years Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2020 2019 2018 2020 2019 2018 2020 2019 2018 Derivative contracts designated as hedging instruments: Cash flow hedges $ (81) $ (20) $ 28 Net revenues $ (3) $ 22 $ 18 Cost of sales 7 1 — Marketing, administration and research costs 27 2 6 Interest expense, net (11) (8) (1) Net investment hedges (a) (514) 369 324 Interest expense, net (b) $ 194 $ 230 $ 260 Derivative contracts not designated as hedging instruments Interest expense, net 71 94 62 Marketing, administration and research costs (c) (368) (115) 378 Total $ (595) $ 349 $ 352 $ 20 $ 17 $ 23 $ (103) $ 209 $ 700 (a) Amount of gains (losses) on hedges of net investments principally related to changes in exchange and interest rates between the Euro and U.S. dollar (b) Represent the gains for amounts excluded from the effectiveness testing (c) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates substantially offset the (losses) and gains generated by the underlying intercompany and third-party loans being hedged |
Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes | Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: For the Years Ended December 31, (in millions) 2020 2019 2018 Gain as of January 1, $ 3 $ 35 $ 42 Derivative (gains)/losses transferred to earnings (20) (14) (31) Change in fair value (68) (18) 24 Gain/(loss) as of December 31, $ (85) $ 3 $ 35 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Losses, Net of Taxes | PMI's accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At December 31, (in millions) 2020 2019 2018 Currency translation adjustments $ (6,843) $ (5,537) $ (6,500) Pension and other benefits (4,253) (3,829) (3,646) Derivatives accounted for as hedges (85) 3 35 Total accumulated other comprehensive losses $ (11,181) $ (9,363) $ (10,111) |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Tobacco Related Cases Pertaining to combustible Products Pending Against Company | The table below lists the number of tobacco-related cases pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of February 5, 2021, February 3, 2020 and February 4, 2019:¹ Type of Case Number of Cases Pending as of February 5, 2021 Number of Cases Pending as of February 3, 2020 Number of Cases Pending as of February 4, 2019 Individual Smoking and Health Cases 43 50 55 Smoking and Health Class Actions 9 10 10 Health Care Cost Recovery Actions 17 17 16 Label-Related Class Actions — — 1 Individual Label-Related Cases 5 5 7 Public Civil Actions 2 2 2 |
Schedule of Verdicts and Post Trial Developments | The table below lists the verdict and significant post-trial developments in the three pending cases where a verdict was returned in favor of the plaintiff: ______ ¹ Includes cases pending in Canada. Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $12.1 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.4 billion)). The trial court awarded CAD 90,000 (approximately $70,250) in punitive damages, allocating CAD 30,000 (approximately $23,400) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $781 million) of the compensatory damage award, CAD 200 million (approximately $156.1 million) of which is our subsidiary’s portion, into a trust within 60 days. In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “ Stayed Litigation — Canada ” for further detail.) Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Cecilia Létourneau Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Létourneau class on liability and awarded a total of CAD 131 million (approximately $102.3 million) in punitive damages, allocating CAD 46 million (approximately $36 million) to RBH. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “ Stayed Litigation — Canada ” for further detail.) Date Location of Type of Verdict Post-Trial August 5, 2016 Argentina/Hugo Lespada Individual Action On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $1,252), plus interest, in compensatory and moral damages. The trial court found that our subsidiary failed to warn plaintiff of the risk of becoming addicted to cigarettes. On August 23, 2016, our subsidiary filed its notice of appeal. On October 31, 2017, the Civil and Commercial Court of Appeals of Mar del Plata ruled that plaintiff's claim was barred by the statute of limitations and it reversed the trial court's decision. On November 28, 2017, plaintiff filed an extraordinary appeal of the reversal of the trial court's decision to the Supreme Court of the Province of Buenos Aires. |
Asset Impairment and Exit Cos_2
Asset Impairment and Exit Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs by Segment | During 2020 and 2019, PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) 2020 2019 Separation programs: (1) European Union $ 53 $ 251 Eastern Europe 14 — Middle East & Africa 18 — South & Southeast Asia 22 3 East Asia & Australia 25 — Latin America & Canada 9 49 Total separation programs 141 303 Asset impairment charges (1) European Union 4 91 Eastern Europe 1 — Middle East & Africa 1 — South & Southeast Asia 1 17 East Asia & Australia 1 — Latin America & Canada — 11 Total asset impairment charges 8 119 Asset impairment and exit costs $ 149 $ 422 (1) Organizational design optimization pre-tax charges in 2020 were allocated across all operating segments. |
Movement in Exit Cost Liabilities | The movement in exit cost liabilities for the year ended December 31, 2020 was as follows: (in millions) Liability balance, January 1, 2020 $ 191 Charges, net 141 Cash spent (163) Currency/other 11 Liability balance, December 31, 2020 $ 180 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Lease Assets and Liabilities | PMI’s operating leases at December 31, 2020 and 2019, were as follows: At December 31, (in millions) 2020 2019 Assets: Other assets $ 697 $ 766 Liabilities: Current Accrued liabilities - Other $ 190 $ 194 Noncurrent Income taxes and other liabilities 517 569 Total lease liabilities $ 707 $ 763 |
Lease Cost Components | The components of PMI’s lease cost were as follows for the years ended December 31, 2020 and 2019: For the Years Ended December 31, (in millions) 2020 2019 Operating lease cost $ 237 $ 242 Short-term lease cost 49 61 Variable lease cost 31 29 Total lease cost $ 317 $ 332 |
Operating Lease Liability Maturity | Maturity of PMI’s operating lease liabilities, on an undiscounted basis, as of December 31, 2020, was as follows: (in millions) Total 2021 $ 215 2022 161 2023 110 2024 72 2025 47 Thereafter 291 Total lease payments 896 Less: Interest 189 Present value of lease liabilities $ 707 |
Other Lease Information | Other information related to PMI’s operating leases was as follows for the year ended December 31, 2020 and 2019: December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities in Operating cash flows $ 238 $ 240 Leased assets obtained in exchange for new operating lease liabilities $ 149 $ 221 Weighted-average remaining lease term (years) 10.1 9.6 Weighted-average discount rate (1) 4.3 % 4.4 % (1) PMI’s weighted-average discount rate is based on its estimated pre-tax cost of debt adjusted for country-specific risk. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | 2020 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 7,153 $ 6,651 $ 7,446 $ 7,444 Gross profit $ 4,751 $ 4,472 $ 5,030 $ 4,872 Net earnings attributable to PMI $ 1,826 $ 1,947 $ 2,307 $ 1,976 Per share data: Basic EPS $ 1.17 $ 1.25 $ 1.48 $ 1.27 Diluted EPS $ 1.17 $ 1.25 $ 1.48 $ 1.27 Dividends declared $ 1.17 $ 1.17 $ 1.20 $ 1.20 2019 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,751 $ 7,699 $ 7,642 $ 7,713 Gross profit $ 4,286 $ 5,034 $ 5,037 $ 4,935 Net earnings attributable to PMI $ 1,354 $ 2,319 $ 1,896 $ 1,616 Per share data: Basic EPS $ 0.87 $ 1.49 $ 1.22 $ 1.04 Diluted EPS $ 0.87 $ 1.49 $ 1.22 $ 1.04 Dividends declared $ 1.14 $ 1.14 $ 1.17 $ 1.17 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | Machinery and Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 15 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 40 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net (Movement in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 5,858 | $ 7,189 |
Changes due to: | ||
Currency | 106 | 132 |
Deconsolidation of RBH | (1,463) | |
Ending Balance | 5,964 | 5,858 |
European Union [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,338 | 1,357 |
Changes due to: | ||
Currency | 96 | (19) |
Ending Balance | 1,434 | 1,338 |
Eastern Europe [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 300 | 303 |
Changes due to: | ||
Currency | 17 | (3) |
Ending Balance | 317 | 300 |
Middle East & Africa [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 89 | 87 |
Changes due to: | ||
Currency | (3) | 2 |
Ending Balance | 86 | 89 |
South & Southeast Asia [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,898 | 2,795 |
Changes due to: | ||
Currency | 17 | 103 |
Ending Balance | 2,915 | 2,898 |
East Asia & Australia [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 551 | 536 |
Changes due to: | ||
Currency | 8 | 15 |
Ending Balance | 559 | 551 |
Latin America & Canada [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 682 | 2,111 |
Changes due to: | ||
Currency | (29) | 34 |
Deconsolidation of RBH | (1,463) | |
Ending Balance | $ 653 | $ 682 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 1,289 | $ 1,319 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Accumulated Amortization | 722 | 642 |
Total other intangible assets, gross | 2,741 | 2,755 |
Total other intangible assets, net | $ 2,019 | 2,113 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 13 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 1,233 | 1,217 |
Amortizable intangible assets, Accumulated Amortization | 594 | 526 |
Amortizable intangible assets, Net | $ 639 | 691 |
Distribution Networks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 7 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 115 | 113 |
Amortizable intangible assets, Accumulated Amortization | 78 | 72 |
Amortizable intangible assets, Net | $ 37 | 41 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 8 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 104 | 106 |
Amortizable intangible assets, Accumulated Amortization | 50 | 44 |
Amortizable intangible assets, Net | $ 54 | $ 62 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Non-amortizable intangible assets, currency movements | $ (30,000,000) | |||
Finite-lived intangible assets, currency movements | 15,000,000 | |||
Amortization of intangibles | 73,000,000 | $ 66,000,000 | $ 82,000,000 | |
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | 72,000,000 | |||
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 72,000,000 | |||
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 72,000,000 | |||
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 72,000,000 | |||
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | 72,000,000 | |||
Goodwill, impairment loss | $ 0 | |||
Trademarks and Distribution Networks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 73,000,000 | |||
Change in accumulated amortization, currency movements | $ (7,000,000) |
Related Parties - Equity Inve_3
Related Parties - Equity Investments and Other (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 22, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 966 | $ 1,053 | |
Difference between equity method investment carrying value and book value | 773 | 901 | |
Dividends from Equity Method Investees | 79 | 100 | |
Other equity securities, unrealized pre-tax gain (loss) | (76) | 44 | |
Other equity securities, unrealized gain (loss), net of tax | (60) | 35 | |
Level 1 [Member] | Fair Value [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Marketable securities, noncurrent | $ 256 | 332 | |
PMM [Member] | TTI [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling ownership percentage | 33.00% | ||
STAEM [Member] | EITA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 51.00% | ||
STAEM [Member] | Management Et Developpement Des Actifs Et Des Ressources Holding (MADAR Holding) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% | ||
IPM India [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Parent ownership percentage | 56.30% | ||
Minimum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between equity method investment carrying value and book value, amortization period | 10 years | ||
Maximum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between equity method investment carrying value and book value, amortization period | 20 years | ||
Equity Method Investment Goodwill [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 745 | $ 863 | |
Megapolis [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 23.00% | ||
EITA [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% | ||
STAEM [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25.00% | ||
RBH [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities | $ 3,280 |
Related Parties - Equity Inve_4
Related Parties - Equity Investments and Other (Balance Sheet and Earnings Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Net revenues | $ 3,233 | $ 3,251 | $ 2,714 |
Expenses | 51 | 63 | 21 |
Receivables | 365 | 523 | |
Payables | 13 | 20 | |
Megapolis [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net revenues | 2,174 | 2,236 | 1,994 |
Receivables | 209 | 375 | |
Other Related Party [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net revenues | 1,059 | 1,015 | 720 |
Expenses | 51 | 63 | $ 21 |
Receivables | 156 | 148 | |
Payables | $ 13 | $ 20 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | ||
Standard product warranty term | 12 months | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 140 | $ 67 |
Changes due to: | ||
Warranties issued | 242 | 303 |
Settlements | (254) | (230) |
Currency/Other | 9 | 0 |
Balance at end of period | $ 137 | $ 140 |
Acquisitions (Details)
Acquisitions (Details) - Tabacalera Costarricense, S.A. And Mendiola Y Campania, S.A. [Member] $ in Millions | Mar. 21, 2018USD ($) |
Business Acquisition [Line Items] | |
Interest acquired | 49.00% |
Net purchase price | $ 95 |
Contingent consideration | $ 2 |
Ownership percentage | 100.00% |
Decrease to additional paid-in capital | $ 86 |
Indebtedness (Short-Term Borrow
Indebtedness (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 244 | $ 338 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 0 | $ 0 |
Average Year-End Rate | 0.00% | 0.00% |
Bank Loans [Member] | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 244 | $ 338 |
Average Year-End Rate | 5.30% | 5.50% |
Indebtedness (Long-Term Debt) (
Indebtedness (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 31,292 | $ 30,707 |
Less current portion of long-term debt | 3,124 | 4,051 |
Long-term debt | 28,168 | 26,656 |
Finance leases | $ 37 | 56 |
US Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.199% | |
Total long-term debt | $ 21,221 | 19,783 |
Foreign Currency Obligations [Member] | Euro Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.983% | |
Total long-term debt | $ 9,253 | 9,822 |
Foreign Currency Obligations [Member] | Swiss Franc Notes [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.83% | |
Total long-term debt | $ 622 | 899 |
Foreign Currency Obligations [Member] | Other Payable [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.187% | |
Total long-term debt | $ 196 | $ 203 |
Minimum [Member] | US Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.875% | |
Minimum [Member] | Foreign Currency Obligations [Member] | Euro Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.125% | |
Minimum [Member] | Foreign Currency Obligations [Member] | Swiss Franc Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.625% | |
Maximum [Member] | US Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 6.375% | |
Maximum [Member] | Foreign Currency Obligations [Member] | Euro Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.125% | |
Maximum [Member] | Foreign Currency Obligations [Member] | Swiss Franc Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.00% |
Indebtedness (Fair Value of Out
Indebtedness (Fair Value of Outstanding Long-Term Debt, Excluding Finance Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of outstanding long-term debt, excluding finance leases | $ 35,227 | $ 32,821 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of outstanding long-term debt, excluding finance leases | $ 177 | $ 167 |
Indebtedness (Debt Issuances Ou
Indebtedness (Debt Issuances Outstanding) (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020CHF (SFr) |
US Dollar Notes [Member] | 1.875% US Dollar Notes Due February 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.875% | 1.875% | 1.875% |
US Dollar Notes [Member] | 4.125% US Dollar Notes Due May 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 350,000,000 | ||
Interest Rate | 4.125% | 4.125% | 4.125% |
US Dollar Notes [Member] | 2.900% US Dollar Notes Due November 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.90% | 2.90% | 2.90% |
US Dollar Notes [Member] | 2.625% US Dollar Notes Due February 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 2.625% | 2.625% | 2.625% |
US Dollar Notes [Member] | 2.375% US Dollar Notes Due August 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.375% | 2.375% | 2.375% |
US Dollar Notes [Member] | 2.500% US Dollar Notes Due August 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.50% | 2.50% | 2.50% |
US Dollar Notes [Member] | 2.500% US Dollar Notes Due November 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.50% | 2.50% | 2.50% |
US Dollar Notes [Member] | 2.625% US Dollar Notes Due March 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 600,000,000 | ||
Interest Rate | 2.625% | 2.625% | 2.625% |
US Dollar Notes [Member] | 2.125% US Dollar Notes Due May 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 2.125% | 2.125% | 2.125% |
US Dollar Notes [Member] | 1.125% US Dollar Notes Due May 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.125% | 1.125% | 1.125% |
US Dollar Notes [Member] | 3.600% US Dollar Notes Due November 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.60% | 3.60% | 3.60% |
US Dollar Notes [Member] | 2.875% US Dollar Notes Due May 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 900,000,000 | ||
Interest Rate | 2.875% | 2.875% | 2.875% |
US Dollar Notes [Member] | 3.250% US Dollar Notes Due November 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.25% | 3.25% | 3.25% |
US Dollar Notes [Member] | 1.500% US Dollar Notes Due May 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.50% | 1.50% | 1.50% |
US Dollar Notes [Member] | 3.375% US Dollar Notes Due August 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.375% | 3.375% | 3.375% |
US Dollar Notes [Member] | 2.750% US Dollar Notes Due February 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.75% | 2.75% | 2.75% |
US Dollar Notes [Member] | 0.875% US Dollar Notes Due May 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 0.875% | 0.875% | 0.875% |
US Dollar Notes [Member] | 3.125% US Dollar Notes Due August 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.125% | 3.125% | 3.125% |
US Dollar Notes [Member] | 3.125% US Dollar Notes Due March 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.125% | 3.125% | 3.125% |
US Dollar Notes [Member] | 3.375% US Dollar Notes Due August 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.375% | 3.375% | 3.375% |
US Dollar Notes [Member] | 2.100% US Dollar Notes Due May 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.10% | 2.10% | 2.10% |
US Dollar Notes [Member] | 1.750% US Dollar Notes Due November 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.75% | 1.75% | 1.75% |
US Dollar Notes [Member] | 6.375% US Dollar Notes Due May 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,500,000,000 | ||
Interest Rate | 6.375% | 6.375% | 6.375% |
US Dollar Notes [Member] | 4.375% US Dollar Notes Due November 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.375% | 4.375% | 4.375% |
US Dollar Notes [Member] | 4.500% US Dollar Notes Due March 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 700,000,000 | ||
Interest Rate | 4.50% | 4.50% | 4.50% |
US Dollar Notes [Member] | 3.875% US Dollar Notes Due August 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.875% | 3.875% | 3.875% |
US Dollar Notes [Member] | 4.125% US Dollar Notes Due March 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 850,000,000 | ||
Interest Rate | 4.125% | 4.125% | 4.125% |
US Dollar Notes [Member] | 4.875% US Dollar Notes Due November 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.875% | 4.875% | 4.875% |
US Dollar Notes [Member] | 4.250% US Dollar Notes Due November 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.25% | 4.25% | 4.25% |
US Dollar Notes [Member] | 4.250% US Dollar Notes Issued May 2016 Due November 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 4.25% | 4.25% | 4.25% |
Foreign Currency Obligations [Member] | 1.875% Euro Notes Due March 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,029,000,000 | € 750,000,000 | |
Interest Rate | 1.875% | 1.875% | 1.875% |
Foreign Currency Obligations [Member] | 2.875% Euro Notes Due May 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 761,000,000 | € 600,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations [Member] | 0.625% Euro Notes Due November 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 582,000,000 | € 500,000,000 | |
Interest Rate | 0.625% | 0.625% | 0.625% |
Foreign Currency Obligations [Member] | 2.750% Euro Notes Due March 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 972,000,000 | € 750,000,000 | |
Interest Rate | 2.75% | 2.75% | 2.75% |
Foreign Currency Obligations [Member] | 2.875% Euro Notes Due March 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,372,000,000 | € 1,000,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations [Member] | 0.125% Euro Notes Due August 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 557,000,000 | € 500,000,000 | |
Interest Rate | 0.125% | 0.125% | 0.125% |
Foreign Currency Obligations [Member] | 2.875% Euro Notes Due May 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 697,000,000 | € 500,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations [Member] | 0.800% Euro Notes Due August 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 835,000,000 | € 750,000,000 | |
Interest Rate | 0.80% | 0.80% | 0.80% |
Foreign Currency Obligations [Member] | 3.125% Euro Notes Due June 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 648,000,000 | € 500,000,000 | |
Interest Rate | 3.125% | 3.125% | 3.125% |
Foreign Currency Obligations [Member] | 2.000% Euro Notes Due May 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 578,000,000 | € 500,000,000 | |
Interest Rate | 2.00% | 2.00% | 2.00% |
Foreign Currency Obligations [Member] | 1.875% Euro Notes Due November 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 582,000,000 | € 500,000,000 | |
Interest Rate | 1.875% | 1.875% | 1.875% |
Foreign Currency Obligations [Member] | 1.450% Euro Notes Due August 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 835,000,000 | € 750,000,000 | |
Interest Rate | 1.45% | 1.45% | 1.45% |
Foreign Currency Obligations [Member] | 2.000% Swiss Franc Notes Due December 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 335,000,000 | SFr 300,000,000 | |
Interest Rate | 2.00% | 2.00% | 2.00% |
Foreign Currency Obligations [Member] | 1.625% Swiss Franc Notes Due May 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 283,000,000 | SFr 250,000,000 | |
Interest Rate | 1.625% | 1.625% | 1.625% |
Indebtedness (Aggregate Maturit
Indebtedness (Aggregate Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 3,124 | |
2022 | 2,760 | |
2023 | 2,362 | |
2024 | 3,442 | |
2025 | 2,424 | |
2026-2030 | 7,206 | |
2031-2035 | 1,535 | |
Thereafter | 8,699 | |
Long-term debt, gross | 31,552 | |
Debt discounts | (260) | |
Total long-term debt | $ 31,292 | $ 30,707 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) | Jan. 29, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 25, 2021 | Dec. 31, 2019USD ($) |
Indebtedness [Line Items] | ||||
Borrowings under committed credit facilities | $ 0 | |||
Committed credit facilities, maximum borrowing capacity | $ 7,500,000,000 | |||
Ratio of consolidated EBITDA to consolidated interest expense on a rolling 4 quarter basis, minimum (not less than) | 3.5 | |||
Ratio of consolidated EBITDA to consolidated interest expense on a rolling 4 quarter basis | 12.6 | |||
Borrowings from committed credit facilities and other bank loans | $ 244,000,000 | $ 338,000,000 | ||
Bank Loans [Member] | ||||
Indebtedness [Line Items] | ||||
Borrowings from committed credit facilities and other bank loans | 244,000,000 | 338,000,000 | ||
Subsidiaries [Member] | Bank Loans [Member] | ||||
Indebtedness [Line Items] | ||||
Borrowings from committed credit facilities and other bank loans | 244,000,000 | 338,000,000 | ||
Short-Term Credit Arrangement [Member] | Subsidiaries [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,700,000,000 | $ 2,700,000,000 | ||
1.875% US Dollar Notes Due February 2021 [Member] | US Dollar Notes [Member] | ||||
Indebtedness [Line Items] | ||||
Interest rate, stated percentage | 1.875% | |||
Face amount | $ 750,000,000 | |||
1.875% US Dollar Notes Due February 2021 [Member] | Subsequent Event [Member] | US Dollar Notes [Member] | ||||
Indebtedness [Line Items] | ||||
Interest rate, stated percentage | 1.875% | |||
364-day revolving credit, expiring February 2, 2021 [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,000,000,000 | |||
Debt term | 364 days | |||
Multi-year Revolving Credit Facility, Expiring February 10, 2025 [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,000,000,000 | |||
Multi-year revolving credit, expiring October 1, 2022 [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 3,500,000,000 | |||
364-day revolving credit, expiring February 1, 2022 [Member] | Subsequent Event [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 1,750,000,000 | |||
Debt term | 364 days | |||
Multi-year Revolving Credit Facility, Expiring February 10, 2026 [Member] | Subsequent Event [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 1,860,000,000 |
Indebtedness (Credit Facilities
Indebtedness (Credit Facilities) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | $ 7,500,000,000 |
364-day revolving credit, expiring February 2, 2021 [Member] | |
Line of Credit Facility [Line Items] | |
Debt term | 364 days |
Committed Credit Facilities | $ 2,000,000,000 |
Multi-year revolving credit, expiring October 1, 2022 [Member] | |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | 3,500,000,000 |
Multi-year Revolving Credit Facility, Expiring February 10, 2025 [Member] | |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | $ 2,000,000,000 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) | Dec. 31, 2020shares |
Class of Stock Disclosures [Abstract] | |
Common stock, shares authorized (in shares) | 6,000,000,000 |
Shares of common stock reserved (in shares) | 25,148,458 |
Preferred stock shares authorized (in shares) | 250,000,000 |
Capital Stock (Schedule of Comm
Capital Stock (Schedule of Common Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | ||
Shares repurchased, beginning of period (in shares) | (553,421,668) | ||
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | |
Shares repurchased, end of period (in shares) | (551,942,600) | (553,421,668) | |
Shares Issued [Member] | |||
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares Repurchased [Member] | |||
Capital Stock [Roll Forward] | |||
Shares repurchased, beginning of period (in shares) | (553,421,668) | (554,736,610) | (556,098,569) |
Issuance of stock awards (in shares) | 1,479,068 | 1,314,942 | 1,361,959 |
Shares repurchased, end of period (in shares) | (551,942,600) | (553,421,668) | (554,736,610) |
Shares Outstanding [Member] | |||
Capital Stock [Roll Forward] | |||
Shares outstanding, beginning of period (in shares) | 1,555,894,663 | 1,554,579,721 | 1,553,217,762 |
Issuance of stock awards (in shares) | 1,479,068 | 1,314,942 | 1,361,959 |
Shares outstanding, end of period (in shares) | 1,557,373,731 | 1,555,894,663 | 1,554,579,721 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)yearperformanceMetricshares | Dec. 31, 2019shares | Dec. 31, 2018shares | May 31, 2017shares | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.00% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 133 | |||
Weighted-average recognition period | 2 years | |||
Vested (in shares) | 1,206,871 | 1,126,057 | 1,451,876 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 39 | |||
Weighted-average recognition period | 2 years | |||
Performance period | 3 years | |||
Absolute basis | 40.00% | 50.00% | 50.00% | |
Currency-neutral compound annual adjusted diluted earnings per share growth rate | 30.00% | |||
Performance against specific measures of transformation | 30.00% | 20.00% | 20.00% | |
Currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions | 30.00% | 30.00% | ||
Number of performance metrics used to determine the percentage of PSU's that will vest | performanceMetric | 3 | |||
Aggregate weighted performance factor that determines if the target number of PSU's will vest | 100.00% | |||
Number of shares of common stock issued for each vested PSU | 1 | |||
Vested (in shares) | 343,806 | 330,616 | 0 | |
2017 Performance Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated common stock to be awarded under a stock benefit plan, maximum limit (in shares) | 25,000,000 | |||
Shares available for grant under the plan (in shares) | 17,293,960 | |||
2017 Non Employee Directors Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated common stock to be awarded under a stock benefit plan, maximum limit (in shares) | 1,000,000 | |||
Shares available for grant under the plan (in shares) | 933,338 | |||
Percentage of voting shares that PMI may own, used in determining non-employee director status | 50.00% |
Stock Plans (Activity for Restr
Stock Plans (Activity for Restricted Share Unit Awards) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares (in shares): | |||
Beginning balance (in shares) | 3,725,870 | ||
Granted (in shares) | 1,728,680 | ||
Vested (in shares) | (1,206,871) | (1,126,057) | (1,451,876) |
Forfeited (in shares) | (149,439) | ||
Ending balance (in shares) | 4,098,240 | 3,725,870 | |
Weighted-Average Grant Date Fair Value: | |||
Beginning balance (in dollars per share) | $ 89.85 | ||
Granted (in dollars per share) | 85.79 | $ 77.28 | $ 100.19 |
Vested (in dollars per share) | 96.91 | ||
Forfeited (in dollars per share) | 85.50 | ||
Ending balance (in dollars per share) | $ 86.21 | $ 89.85 | |
Weighted-average grant date fair value | $ 148 | $ 133 | $ 129 |
Compensation expense for share-based awards | 129 | 118 | 114 |
Grant Date Fair Value [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | 117 | 101 | 121 |
Fair Value [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | $ 102 | $ 95 | $ 149 |
Stock Plans (Activity for Perfo
Stock Plans (Activity for Performance Share Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance Shares [Member] | |||
Number of Shares (in shares): | |||
Beginning balance (in shares) | 1,347,460 | ||
Granted (in shares) | 671,220 | ||
Vested (in shares) | (343,806) | (330,616) | 0 |
Forfeited (in shares) | (202,074) | ||
Ending balance (in shares) | 1,472,800 | 1,347,460 | |
Weighted-Average Grant Date Fair Value: | |||
Compensation expense for share-based awards | $ 38 | $ 54 | $ 24 |
Performance Share Units, Other Performance Factors [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Beginning balance (in dollars per share) | $ 88.19 | ||
Granted (in dollars per share) | 86.04 | $ 77.23 | $ 100.69 |
Vested (in dollars per share) | 85.72 | ||
Forfeited (in dollars per share) | 95.66 | ||
Ending balance (in dollars per share) | $ 86.76 | $ 88.19 | |
Weighted-average grant date fair value | $ 28 | $ 30 | $ 20 |
Performance Share Units, TSR Performance Factor [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Beginning balance (in dollars per share) | $ 107.61 | ||
Granted (in dollars per share) | 80.36 | $ 83.59 | $ 118.98 |
Vested (in dollars per share) | 128.72 | ||
Forfeited (in dollars per share) | 116.67 | ||
Ending balance (in dollars per share) | $ 90.48 | $ 107.61 | |
Weighted-average grant date fair value | $ 28 | $ 21 | $ 24 |
Grant Date Fair Value [Member] | Performance Shares [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | 35 | 32 | |
Fair Value [Member] | Performance Shares [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | $ 30 | $ 28 |
Stock Plans (Assumptions Used)
Stock Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Risk free interest rate | 1.40% | 2.40% | 2.30% |
Expected volatility | 23.50% | 21.40% | 19.60% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings attributable to PMI | $ 1,976 | $ 2,307 | $ 1,947 | $ 1,826 | $ 1,616 | $ 1,896 | $ 2,319 | $ 1,354 | $ 8,056 | $ 7,185 | $ 7,911 |
Less distributed and undistributed earnings attributable to share-based payment awards | 20 | 17 | 16 | ||||||||
Net earnings for basic and diluted EPS | $ 8,036 | $ 7,168 | $ 7,895 | ||||||||
Weighted-average shares for basic EPS (in shares) | 1,557,000,000 | 1,555,000,000 | 1,555,000,000 | ||||||||
Plus contingently issuable performance stock units (PSUs) (in shares) | 1,000,000 | 1,000,000 | 0 | ||||||||
Weighted-average shares for diluted EPS (in shares) | 1,558,000,000 | 1,556,000,000 | 1,555,000,000 | ||||||||
Antidilutive stock options (in shares) | 0 | 0 | 0 |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes and Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Earnings before income taxes | $ 10,953 | $ 9,872 | $ 10,671 |
United States federal and state: | |||
Current | (80) | 17 | 120 |
Deferred | 53 | 24 | (113) |
Total United States | (27) | 41 | 7 |
Outside United States: | |||
Current | 2,600 | 2,417 | 2,425 |
Deferred | (196) | (165) | 13 |
Total outside United States | 2,404 | 2,252 | 2,438 |
Total provision for income taxes | $ 2,377 | $ 2,293 | $ 2,445 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Income tax payable noncurrent | $ 1,100 | $ 1,200 | |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 62 | ||
Income tax penalties and interest income (expense) recognized | $ (1) | $ (4) | $ 4 |
Percentage increase (decrease) in effective income tax rate | (1.50%) | 0.30% | |
Net operating loss carryforwards | $ 351 | $ 486 | |
Net operating loss carryforwards with unlimited period | 79 | 98 | |
Valuation allowances | 250 | 304 | |
Tax Years 2018 - 2019 [Member] | |||
Income Taxes [Line Items] | |||
Tax adjustments | $ 93 | ||
Tax Years 2015-2018 [Member] | |||
Income Taxes [Line Items] | |||
Tax adjustments | (67) | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Foreign and U.S. state jurisdictions have statutes of limitations | 3 years | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Foreign and U.S. state jurisdictions have statutes of limitations | 5 years | ||
RBH [Member] | |||
Income Taxes [Line Items] | |||
Tax adjustments | $ (49) | ||
United States [Member] | |||
Income Taxes [Line Items] | |||
Open tax years | 2017 and onward |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 63 | $ 56 | $ 145 |
Additions based on tax positions related to the current year | 11 | 10 | 10 |
Additions for tax positions of previous years | 1 | 1 | 15 |
Reductions for tax positions of prior years | (4) | (2) | (94) |
Reductions due to lapse of statute of limitations | (1) | (1) | (3) |
Settlements | 0 | 0 | (19) |
Other | 2 | (1) | 2 |
Ending balance | $ 72 | $ 63 | $ 56 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 72 | $ 63 | $ 56 | $ 145 |
Accrued interest and penalties | 17 | 16 | 12 | |
Tax credits and other indirect benefits | (9) | (12) | (14) | |
Liability for tax contingencies | $ 80 | $ 67 | $ 54 |
Income Taxes (Schedule of Reaso
Income Taxes (Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate And Federal Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Increase (decrease) resulting from: | |||
Foreign rate differences | 0.60% | 1.80% | 1.30% |
Dividend repatriation cost | 0.40% | (0.50%) | 2.50% |
Global intangible low-taxed income | 0.10% | 1.40% | 1.20% |
U.S. state taxes | 0.20% | 0.70% | (1.10%) |
Foreign derived intangible income | (0.60%) | (1.20%) | (1.10%) |
Other | 0.00% | 0.00% | (0.90%) |
Effective tax rate | 21.70% | 23.20% | 22.90% |
Income Taxes (Schedule of Tempo
Income Taxes (Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 225 | $ 184 |
Accrued pension costs | 720 | 620 |
Inventory | 232 | 176 |
Accrued liabilities | 182 | 130 |
Net operating loss carryforwards and tax credits | 351 | 486 |
Foreign exchange | 27 | 0 |
Other | 124 | 101 |
Total deferred income tax assets | 1,861 | 1,697 |
Less: valuation allowance | (250) | (304) |
Total deferred income tax assets | 1,611 | 1,393 |
Deferred income tax liabilities: | ||
Trade names | (374) | (469) |
Property, plant and equipment | (200) | (180) |
Unremitted earnings | (311) | (243) |
Foreign exchange | 0 | (256) |
Total deferred income tax liabilities | (885) | (1,148) |
Net deferred income tax assets | $ 726 | $ 245 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Number of operating segments | segment | 6 | |||||||||||
Net revenues | $ 7,444 | $ 7,446 | $ 6,651 | $ 7,153 | $ 7,713 | $ 7,642 | $ 7,699 | $ 6,751 | $ 28,694 | $ 29,805 | $ 29,625 | |
Asset impairment and exit costs | 149 | 422 | ||||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenues | 28,694 | 29,805 | 29,625 | |||||||||
Long-lived assets | 8,131 | 8,086 | 8,131 | 8,086 | 7,982 | |||||||
Marketing Administration and Research Costs [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Deconsolidation, gain (loss) amount | (239) | |||||||||||
Indonesia [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-lived assets | 700 | 800 | 700 | 800 | 700 | |||||||
East Asia & Australia [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenues | 5,429 | 5,364 | 5,580 | |||||||||
Long-lived assets | 807 | 829 | 807 | 829 | 781 | |||||||
European Union [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenues | 10,702 | 9,817 | 9,298 | |||||||||
Asset impairment and exit costs | 342 | |||||||||||
Long-lived assets | 4,500 | 4,275 | 4,500 | 4,275 | 4,216 | |||||||
Eastern Europe [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenues | 3,378 | 3,282 | 2,921 | |||||||||
Long-lived assets | 668 | 774 | 668 | 774 | 547 | |||||||
Eastern Europe [Member] | The Moscow Tax Inspectorate for Major Taxpayers Audit [Member] | Other Litigation [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Amount of pre-tax charge related to alleged underpayment of excise taxes and VAT claimed by tax authority, including penalties and interest | 374 | |||||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Smoking And Health Class Actions [Member] | RBH [Member] | Appellate Ruling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Amount of litigation charge | $ 194 | 194 | ||||||||||
Italy [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-lived assets | 1,100 | 1,100 | 1,100 | 1,100 | 1,100 | |||||||
Switzerland [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-lived assets | $ 1,300 | $ 1,100 | 1,300 | 1,100 | 1,000 | |||||||
Brazil [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Tax credit related to overpayment | $ 119 | |||||||||||
Tax credit related to overpayment, pending amount | 90 | |||||||||||
Geographic Concentration Risk [Member] | Japan [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net revenues | $ 4,100 | $ 3,900 | $ 3,800 | |||||||||
Customer Concentration Risk [Member] | East Asia & Australia [Member] | Customer One [Member] | Net Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Concentration risk percentage | 14.00% | 13.00% | 13.00% | |||||||||
Customer Concentration Risk [Member] | European Union [Member] | Customer One [Member] | Net Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Concentration risk percentage | 11.00% | 10.00% | 10.00% |
Segment Reporting (Segment Data
Segment Reporting (Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 7,444 | $ 7,446 | $ 6,651 | $ 7,153 | $ 7,713 | $ 7,642 | $ 7,699 | $ 6,751 | $ 28,694 | $ 29,805 | $ 29,625 |
Operating income | 11,668 | 10,531 | 11,377 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 28,694 | 29,805 | 29,625 | ||||||||
Operating income | 11,668 | 10,531 | 11,377 | ||||||||
Operating Segments [Member] | European Union [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 10,702 | 9,817 | 9,298 | ||||||||
Operating income | 5,098 | 3,970 | 4,105 | ||||||||
Operating Segments [Member] | Eastern Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,378 | 3,282 | 2,921 | ||||||||
Operating income | 871 | 547 | 902 | ||||||||
Operating Segments [Member] | Middle East & Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,088 | 4,042 | 4,114 | ||||||||
Operating income | 1,026 | 1,684 | 1,627 | ||||||||
Operating Segments [Member] | South & Southeast Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,396 | 5,094 | 4,656 | ||||||||
Operating income | 1,709 | 2,163 | 1,747 | ||||||||
Operating Segments [Member] | East Asia & Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 5,429 | 5,364 | 5,580 | ||||||||
Operating income | 2,400 | 1,932 | 1,851 | ||||||||
Operating Segments [Member] | Latin America & Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 1,701 | 2,206 | 3,056 | ||||||||
Operating income | 564 | 235 | 1,145 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 21,867 | 24,218 | 25,529 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | European Union [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 8,053 | 8,093 | 8,433 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | Eastern Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,250 | 2,438 | 2,597 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | Middle East & Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,031 | 3,721 | 3,732 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | South & Southeast Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,395 | 5,094 | 4,656 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | East Asia & Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,468 | 2,693 | 3,074 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | Latin America & Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 1,670 | 2,179 | 3,037 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 6,827 | 5,587 | 4,096 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | European Union [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,649 | 1,724 | 865 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | Eastern Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 1,128 | 844 | 324 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | Middle East & Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 57 | 321 | 382 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | South & Southeast Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 1 | 0 | 0 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | East Asia & Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,961 | 2,671 | 2,506 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | Latin America & Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 31 | $ 27 | $ 19 |
Segment Reporting (Other Expens
Segment Reporting (Other Expenses By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 908 | $ 898 | $ 907 |
Capital expenditures | 602 | 852 | 1,436 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 897 | 887 | 896 |
Capital expenditures | 600 | 852 | 1,432 |
Operating Segments [Member] | European Union [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 266 | 254 | 269 |
Capital expenditures | 326 | 466 | 813 |
Operating Segments [Member] | Eastern Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 173 | 147 | 101 |
Capital expenditures | 88 | 132 | 136 |
Operating Segments [Member] | Middle East & Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 75 | 90 | 105 |
Capital expenditures | 22 | 35 | 65 |
Operating Segments [Member] | South & Southeast Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 137 | 142 | 154 |
Capital expenditures | 115 | 100 | 129 |
Operating Segments [Member] | East Asia & Australia [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 188 | 185 | 173 |
Capital expenditures | 13 | 67 | 215 |
Operating Segments [Member] | Latin America & Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 58 | 69 | 94 |
Capital expenditures | 36 | 52 | 74 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 11 | 11 | 11 |
Capital expenditures | $ 2 | $ 0 | $ 4 |
Segment Reporting (Long-Lived A
Segment Reporting (Long-Lived Assets By Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Total property, plant and equipment, net and Other assets | $ 9,132 | $ 8,602 | $ 8,646 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 8,131 | 8,086 | 7,982 |
Operating Segments [Member] | European Union [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 4,500 | 4,275 | 4,216 |
Operating Segments [Member] | Eastern Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 668 | 774 | 547 |
Operating Segments [Member] | Middle East & Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 375 | 369 | 362 |
Operating Segments [Member] | South & Southeast Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,348 | 1,361 | 1,297 |
Operating Segments [Member] | East Asia & Australia [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 807 | 829 | 781 |
Operating Segments [Member] | Latin America & Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 433 | 478 | 779 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Other | $ 1,001 | $ 516 | $ 664 |
Benefit Plans (Pension and Othe
Benefit Plans (Pension and Other Employee Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 97 | $ 89 | $ 41 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | (14) | (18) | (51) |
Postemployment Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | 103 | 100 | 80 |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 8 | $ 7 | $ 12 |
Benefit Plans (Obligations and
Benefit Plans (Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | $ 10,612 | $ 9,152 | |
Service cost | 268 | 214 | $ 210 |
Interest cost | 68 | 118 | 109 |
Benefits paid | (356) | (333) | |
Employee contributions | 130 | 127 | |
Settlement, curtailment and plan amendment | (117) | 50 | |
Actuarial losses (gains) | 653 | 1,430 | |
Currency | 992 | 29 | |
Deconsolidation of RBH | 0 | (166) | |
Other | (7) | (9) | |
Benefit obligation, ending balance | 12,243 | 10,612 | 9,152 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 7,928 | 6,888 | |
Actual return on plan assets | 206 | 1,211 | |
Employer contributions | 102 | 200 | |
Employee contributions | 130 | 127 | |
Benefits paid | (356) | (333) | |
Settlement | (16) | 0 | |
Currency | 752 | 7 | |
Deconsolidation of RBH | 0 | (172) | |
Fair value of plan assets, ending balance | 8,746 | 7,928 | 6,888 |
Net benefit liability | (3,497) | (2,684) | |
Postretirement [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | 190 | 209 | |
Service cost | 2 | 2 | 4 |
Interest cost | 6 | 7 | 9 |
Benefits paid | (7) | (8) | |
Employee contributions | 0 | 0 | |
Settlement, curtailment and plan amendment | |||
Actuarial losses (gains) | 5 | 27 | |
Currency | 3 | 0 | |
Deconsolidation of RBH | 0 | (42) | |
Other | (1) | (5) | |
Benefit obligation, ending balance | 198 | 190 | $ 209 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Net benefit liability | $ (198) | $ (190) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts charged to expense for defined contribution plans | $ 66 | $ 63 | $ 66 |
Estimated contribution to pension plans | 262 | ||
Net postemployment costs | $ 208 | $ 171 | 158 |
Postemployment weighted-average discount rate | 3.00% | 3.00% | |
Postemployment annual weighted-average turnover rate | 3.00% | 3.00% | |
Postemployment percentage increase in assumed compensation cost | 2.10% | 2.60% | |
Assets related to postemployment cost | $ 46 | $ 40 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 60.00% | ||
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 40.00% | ||
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 11,500 | 10,000 | |
Accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 10,500 | 9,000 | |
Accumulated benefit obligations in excess of plan assets, fair value of plan assets | 7,700 | 6,800 | |
Projected benefit obligations in excess of plan assets, project benefit obligation | 12,100 | 10,400 | |
Projected benefit obligations in excess of plan assets, fair value of plan assets | 8,600 | 7,700 | |
Accrued postemployment costs | 12,243 | 10,612 | $ 9,152 |
Actuarial losses | 653 | 1,430 | |
Postemployment [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued postemployment costs | 923 | $ 751 | |
Actuarial losses | $ 142 | ||
Pension Plan Portfolio [Member] | Benefit Obligation [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 4.00% | 4.00% | |
Pension Plan Portfolio [Member] | Benefit Obligation [Member] | Switzerland [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 63.00% | 62.00% | |
Pension Plan Portfolio [Member] | Fair Value Of Plan Assets [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 4.00% | 4.00% | |
Pension Plan Portfolio [Member] | Fair Value Of Plan Assets [Member] | Switzerland [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 59.00% | 59.00% |
Benefit Plans (Pension and Post
Benefit Plans (Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | $ 43 | $ 43 |
Accrued liabilities — employment costs | (26) | (23) |
Long-term employment costs | (3,514) | (2,704) |
Net benefit liability | (3,497) | (2,684) |
Postretirement [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued liabilities — employment costs | (8) | (8) |
Long-term employment costs | (190) | (182) |
Net benefit liability | $ (198) | $ (190) |
Benefit Plans (Weighted-Average
Benefit Plans (Weighted-Average Assumptions to Determine Benefit Obligations) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.56% | 0.83% |
Rate of compensation increase | 1.79% | 1.82% |
Interest crediting rate | 3.20% | 3.20% |
Postretirement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.84% | 3.28% |
Health care cost trend rate assumed for next year | 6.21% | 6.21% |
Ultimate trend rate | 4.73% | 5.09% |
Benefit Plans (Components of Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 268 | $ 214 | $ 210 |
Interest cost | 68 | 118 | 109 |
Expected return on plan assets | (353) | (328) | (349) |
Amortization: | |||
Net losses | 265 | 189 | 172 |
Prior service cost | 1 | (1) | 2 |
Net transition obligation | 1 | 0 | 0 |
Settlement and curtailment | 4 | 4 | 15 |
Net periodic pension cost | 254 | 196 | 159 |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 4 |
Interest cost | 6 | 7 | 9 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization: | |||
Net losses | 2 | 0 | 4 |
Prior service cost | 0 | 0 | (1) |
Net transition obligation | 0 | 0 | 0 |
Settlement and curtailment | 0 | 0 | 0 |
Net periodic pension cost | $ 10 | $ 9 | $ 16 |
Benefit Plans (Net Pension and
Benefit Plans (Net Pension and Postretirement Cost Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost | 1.25% | 2.14% | 1.92% |
Discount rate - interest cost | 0.67% | 1.35% | 1.25% |
Expected rate of return on plan assets | 4.59% | 4.70% | 4.76% |
Rate of compensation increase | 1.82% | 1.86% | 1.65% |
Interest crediting rate | 3.20% | 3.40% | 3.40% |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost | 3.28% | 3.97% | 3.79% |
Discount rate - interest cost | 3.28% | 3.97% | 3.79% |
Health care cost trend rate | 6.21% | 6.17% | 6.17% |
Benefit Plans (Fair Value of Pe
Benefit Plans (Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
U S and International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 63.00% | 63.00% | |
U S and International Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 16.00% | 16.00% | |
Real Estate and Other Money Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 12.00% | 12.00% | |
Investment Funds Holding Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 9.00% | 9.00% | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 8,746 | $ 7,928 | $ 6,888 |
Total assets in the fair value hierarchy | 8,439 | 7,619 | |
Investment funds measured at net asset value | 307 | 309 | |
Pension [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 324 | 276 | |
Pension [Member] | U.S. Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 175 | 170 | |
Pension [Member] | International Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 605 | 563 | |
Pension [Member] | Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 6,811 | 6,125 | |
Pension [Member] | International Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 225 | 197 | |
Pension [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 292 | 282 | |
Pension [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 7 | 6 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 6,758 | 6,059 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 324 | 276 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 175 | 170 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | International Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 605 | 563 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 5,206 | 4,625 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | International Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 149 | 137 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 292 | 282 | |
Pension [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 7 | 6 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,681 | 1,560 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | International Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,605 | 1,500 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | International Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 76 | 60 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | International Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | International Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Benefit Payments From Pension Plans) (Details) - Pension [Member] $ in Millions | Dec. 31, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 401 |
2022 | 383 |
2023 | 387 |
2024 | 390 |
2025 | 399 |
2026 - 2030 | $ 2,226 |
Benefit Plans (Amounts Recorded
Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | $ (5,050) | $ (4,556) | $ (4,181) |
Prior service cost | 2 | 5 | (24) |
Net transition obligation | (3) | (4) | (4) |
Deferred income taxes | 798 | 726 | 563 |
Losses to be amortized | (4,253) | (3,829) | (3,646) |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (4,147) | (3,718) | (3,438) |
Prior service cost | 22 | 3 | (27) |
Net transition obligation | (3) | (4) | (4) |
Deferred income taxes | 570 | 520 | 379 |
Losses to be amortized | (3,558) | (3,199) | (3,090) |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (64) | (63) | (41) |
Prior service cost | 2 | 2 | 3 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 24 | 24 | 20 |
Losses to be amortized | (38) | (37) | (18) |
Postemployment [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (839) | (775) | (702) |
Prior service cost | (22) | 0 | 0 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 204 | 182 | 164 |
Losses to be amortized | $ (657) | $ (593) | $ (538) |
Benefit Plans (Movements in Oth
Benefit Plans (Movements in Other Comprehensive Earnings (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization: | |||
Net losses | $ 331 | $ 278 | $ 247 |
Prior service cost | 29 | 31 | (1) |
Net transition obligation | 1 | 1 | |
Other income/expense: | |||
Net losses | 3 | 3 | 14 |
Prior service cost | 2 | ||
Deferred income taxes | (67) | (69) | (43) |
Amortization of net losses, prior service costs and net transition costs | 299 | 243 | 218 |
Other movements during the year: | |||
Deferred income taxes | 139 | 247 | 65 |
Net gains (losses) and prior service costs | (726) | (454) | (1,046) |
Accumulated Other Comprehensive Losses [Member] | |||
Other movements during the year: | |||
Net losses | (828) | (698) | (1,121) |
Prior service cost | (34) | (2) | 8 |
Deferred income taxes | 139 | 65 | |
Net gains (losses) and prior service costs | (723) | (426) | (1,048) |
Total movements in other comprehensive earnings (losses) | (424) | (183) | (830) |
Pension [Member] | |||
Amortization: | |||
Net losses | 250 | 198 | 180 |
Prior service cost | 29 | 32 | 0 |
Net transition obligation | 1 | 1 | |
Other income/expense: | |||
Net losses | 3 | 3 | 14 |
Prior service cost | 2 | ||
Deferred income taxes | (49) | (51) | (28) |
Amortization of net losses, prior service costs and net transition costs | 236 | 182 | 167 |
Other movements during the year: | |||
Net losses | (682) | (521) | |
Prior service cost | (12) | (2) | |
Deferred income taxes | 99 | ||
Net gains (losses) and prior service costs | (595) | (291) | |
Total movements in other comprehensive earnings (losses) | (359) | (109) | |
Pension [Member] | Accumulated Other Comprehensive Losses [Member] | |||
Other movements during the year: | |||
Net losses | (1,008) | ||
Prior service cost | 8 | ||
Deferred income taxes | 80 | ||
Net gains (losses) and prior service costs | (920) | ||
Total movements in other comprehensive earnings (losses) | (753) | ||
Postretirement [Member] | |||
Amortization: | |||
Net losses | 3 | 3 | 5 |
Prior service cost | 0 | (1) | (1) |
Net transition obligation | 0 | 0 | |
Other income/expense: | |||
Net losses | 0 | 0 | 0 |
Prior service cost | 0 | ||
Deferred income taxes | (1) | (1) | (1) |
Amortization of net losses, prior service costs and net transition costs | 2 | 1 | 3 |
Other movements during the year: | |||
Net losses | (4) | (27) | 34 |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | 1 | (7) | |
Net gains (losses) and prior service costs | (3) | (20) | 27 |
Total movements in other comprehensive earnings (losses) | (1) | (19) | 30 |
Postemployment Benefit Plans [Member] | |||
Amortization: | |||
Net losses | 78 | 77 | 62 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | |
Other income/expense: | |||
Net losses | 0 | 0 | 0 |
Prior service cost | 0 | ||
Deferred income taxes | (17) | (17) | (14) |
Amortization of net losses, prior service costs and net transition costs | 61 | 60 | 48 |
Other movements during the year: | |||
Net losses | (142) | (150) | (147) |
Prior service cost | (22) | 0 | 0 |
Deferred income taxes | 39 | (8) | |
Net gains (losses) and prior service costs | (125) | (115) | (155) |
Total movements in other comprehensive earnings (losses) | (64) | (55) | (107) |
Deconsolidation of RBH [Member] | |||
Other income/expense: | |||
Deferred income taxes | 0 | (15) | 0 |
Amortization of net losses, prior service costs and net transition costs | $ 0 | 27 | $ 0 |
Deconsolidation of RBH [Member] | Accumulated Other Comprehensive Losses [Member] | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 27 | ||
Deferred income taxes | 247 | ||
Deconsolidation of RBH [Member] | Pension [Member] | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 26 | ||
Deferred income taxes | 206 | ||
Deconsolidation of RBH [Member] | Postretirement [Member] | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 1 | ||
Deferred income taxes | 6 | ||
Deconsolidation of RBH [Member] | Postemployment Benefit Plans [Member] | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 0 | ||
Deferred income taxes | $ 35 |
Additional Information (Schedul
Additional Information (Schedule of Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional Information [Abstract] | |||
Research and development expense | $ 495 | $ 465 | $ 383 |
Advertising expense | 637 | 730 | 896 |
Foreign currency net transaction (gains)/losses | 90 | (95) | 21 |
Interest expense | 728 | 796 | 855 |
Interest income | (110) | (226) | (190) |
Interest expense, net | 618 | 570 | 665 |
Total lease cost | $ 317 | $ 332 | |
Total lease cost | $ 312 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 26,500 | $ 24,100 | |
Derivative gains to be reclassified to earnings | $ (49) | ||
Foreign Exchange Contract [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Remaining maturity | 18 months | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 12,600 | 11,400 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Notional amount | 5,000 | 2,800 | |
Net Investment Hedging [Member] | Foreign Debt [Member] | |||
Derivative [Line Items] | |||
Gain (loss) within currency translation | (465) | 234 | $ 349 |
Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 8,900 | $ 9,900 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Foreign Exchange Contracts) (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 182 | $ 390 |
Gross amounts not offset in the consolidated balance sheet, derivative assets - financial instruments | (156) | (297) |
Gross amounts not offset in the consolidated balance sheet, derivative assets - cash collateral received/pledged | (23) | (91) |
Gross amounts not offset in the consolidated balance sheet, derivative assets, total | 3 | 2 |
Fair value of derivative liabilities | 1,110 | 419 |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities - financial instruments | (156) | (297) |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities - cash collateral received/pledged | (892) | (59) |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities, total | 62 | 63 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 130 | 319 |
Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 241 | 23 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 6 | 21 |
Designated as Hedging Instrument [Member] | Income Taxes and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 605 | 301 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 46 | 50 |
Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 207 | 70 |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Income Taxes and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 57 | $ 25 |
Financial Instruments (Cash Flo
Financial Instruments (Cash Flow and Net Investment Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings) (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives from Cash Flow Hedging | $ (81) | $ (20) | $ 28 |
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives from Net Investment Hedging | (514) | 369 | 324 |
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | (595) | 349 | 352 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 20 | 17 | 23 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | (103) | 209 | 700 |
Net Revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (3) | 22 | 18 |
Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 7 | 1 | 0 |
Marketing Administration and Research Costs [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 27 | 2 | 6 |
Marketing Administration and Research Costs [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | (368) | (115) | 378 |
Interest Expense, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (11) | (8) | (1) |
Interest Expense, Net [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings, Investment Hedging | 194 | 230 | 260 |
Amount of Gain/(Loss) Recognized in Earnings | $ 71 | $ 94 | $ 62 |
Financial Instruments (Hedging
Financial Instruments (Hedging Activity Affect on AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | |||
(Gains) losses transferred to earnings, net of income taxes | $ (20) | $ (14) | $ (31) |
Gains (losses) recognized, net of income taxes | (68) | (18) | 24 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | |||
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | |||
Gains (loss), beginning balance | 3 | 35 | 42 |
(Gains) losses transferred to earnings, net of income taxes | (20) | (14) | (31) |
Gains (losses) recognized, net of income taxes | (68) | (18) | 24 |
Gains (loss), ending balance | $ (85) | $ 3 | $ 35 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Losses, Net Of Taxes) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (10,631) | $ (9,599) | $ (10,739) | $ (10,230) |
Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (6,843) | (5,537) | (6,500) | |
Pension and Other Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (4,253) | (3,829) | (3,646) | |
Derivatives Accounted for as Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (85) | 3 | 35 | |
Accumulated Other Comprehensive Losses [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (11,181) | $ (9,363) | $ (10,111) | $ (8,535) |
Contingencies (Tobacco-Related
Contingencies (Tobacco-Related Litigation) (Details) | Mar. 01, 2019USD ($)litigationCase | Mar. 01, 2019CAD ($)litigationCase | May 27, 2015USD ($)manufacturerplaintiff | May 27, 2015CAD ($)manufacturerplaintiff | Jun. 20, 2012cigarette | Jul. 10, 2009cigarette | Oct. 30, 2015USD ($) | Oct. 30, 2015CAD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020litigationCase |
Loss Contingencies [Line Items] | |||||||||||
Number of cases decided in favor of PM | 510 | ||||||||||
Number of cases decided in favor of plaintiff | 13 | ||||||||||
Cases Remaining On Appeal [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of cases on appeal | 3 | ||||||||||
Case Decided In Favor Of Plaintiff [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of cases that reached final resolution in favor of PM | 10 | ||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | |||||||||
Court-estimated number of members in class | plaintiff | 99,957 | 99,957 | |||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages awarded | $ 12,100,000,000 | $ 15,500,000,000 | |||||||||
Punitive damages awarded | 70,250 | 90,000 | |||||||||
Damages awarded, reduced amount | $ 10,500,000,000 | $ 13,500,000,000 | |||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | RBH [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages awarded | $ 2,110,000,000 | $ 2,700,000,000 | $ 2,400,000,000 | $ 3,100,000,000 | |||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | 20.00% | 20.00% | |||||||
Punitive damages awarded | $ 23,400 | $ 30,000 | |||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages awarded that are to be deposited into trust | $ 859,000,000 | $ 1,100,000,000 | |||||||||
Payment period for amount to be deposited into trust | 60 days | 60 days | |||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Appellate Ruling [Member] | RBH [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Amount of security ordered to be furnished and paid | $ 176,400,000 | $ 226,000,000 | |||||||||
Amount of security ordered, funded by defendant | $ 194,000,000 | $ 257,000,000 | |||||||||
Amount of litigation charge | $ | $ 194,000,000 | $ 194,000,000 | |||||||||
Amount of litigation charge net of tax | $ | $ 142,000,000 | ||||||||||
Number of cases decided in favor of plaintiff | 2 | 2 | |||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Appellate Ruling [Member] | Imperial Tobacco Ltd. [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Motion for security ordered by appeals court | $ 592,000,000 | $ 758,000,000 | |||||||||
Canada [Member] | Cecilia Letourneau [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | |||||||||
Court-estimated number of members in class | plaintiff | 918,000 | 918,000 | |||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages awarded | $ 102,300,000 | $ 131,000,000 | |||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | RBH [Member] | Smoking And Health Class Actions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages awarded | $ 36,000,000 | $ 46,000,000 | |||||||||
Punitive damages awarded including interest | $ 44,500,000 | $ 57,000,000 | |||||||||
Canada [Member] | Adams [Member] | Pending Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Plaintiff requirement, minimum number of cigarettes smoked | cigarette | 25,000 | ||||||||||
Canada [Member] | Suzanne Jacklin [Member] | Pending Litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Plaintiff requirement, minimum number of cigarettes smoked | cigarette | 25,000 |
Contingencies (Number of Tobacc
Contingencies (Number of Tobacco Related Cases Pertaining to Combustible Products Pending Against Us and/or Our Subsidiaries or Indemnitees) (Details) - Combustible Products [Member] - litigationCase | Feb. 05, 2021 | Feb. 03, 2020 | Feb. 04, 2019 |
Individual Smoking And Health Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 50 | 55 | |
Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 10 | 10 | |
Health Care Cost Recovery Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 17 | 16 | |
Label Related Class Action [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 0 | 1 | |
Individual Label Related Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 5 | 7 | |
Public Civil Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 43 | ||
Subsequent Event [Member] | Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 9 | ||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 17 | ||
Subsequent Event [Member] | Label Related Class Action [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 0 | ||
Subsequent Event [Member] | Individual Label Related Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 5 | ||
Subsequent Event [Member] | Public Civil Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 |
Contingencies (Verdicts and Pos
Contingencies (Verdicts and Post-Trial Developments) (Details) - Judicial Ruling [Member] | Mar. 01, 2019USD ($) | Mar. 01, 2019CAD ($) | Aug. 05, 2016USD ($) | Aug. 05, 2016ARS ($) | May 27, 2015USD ($) | May 27, 2015CAD ($) |
Canada [Member] | Smoking And Health Class Actions [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 12,100,000,000 | $ 15,500,000,000 | ||||
Punitive damages awarded | 70,250 | 90,000 | ||||
Awarded compensatory damages that are to be deposited into trust | 781,000,000 | 1,000,000,000 | ||||
Canada [Member] | Smoking And Health Class Actions [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | RBH [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 2,110,000,000 | $ 2,700,000,000 | $ 2,400,000,000 | $ 3,100,000,000 | ||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | 20.00% | 20.00% | ||
Punitive damages awarded | $ 23,400 | $ 30,000 | ||||
Awarded compensatory damages that are to be deposited into trust | $ 156,100,000 | $ 200,000,000 | ||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | ||||
Canada [Member] | Smoking And Health Class Actions [Member] | Cecilia Letourneau [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Punitive damages awarded | $ 102,300,000 | $ 131,000,000 | ||||
Canada [Member] | Smoking And Health Class Actions [Member] | Cecilia Letourneau [Member] | RBH [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Punitive damages awarded | $ 36,000,000 | $ 46,000,000 | ||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||
Argentina [Member] | Smoking And Health Individual Actions [Member] | Hugo Lespada [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Compensatory damages awarded | $ 1,252 | $ 110,000 |
Contingencies (Smoking and Heal
Contingencies (Smoking and Health Litigation) (Details) | 1 Months Ended | ||||
Apr. 30, 2004BRL (R$) | Apr. 30, 2004USD ($) | Feb. 05, 2021litigationCase | Feb. 03, 2020litigationCase | Feb. 04, 2019litigationCase | |
Individual Smoking And Health Cases [Member] | Combustible Products [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 50 | 55 | |||
Smoking And Health Class Actions [Member] | Brazil [Member] | The Smoker Health Defense Association (ADESF) [Member] | |||||
Loss Contingencies [Line Items] | |||||
Smoking and health loss contingency interest rate | 1.00% | 1.00% | |||
Smoking And Health Class Actions [Member] | Brazil [Member] | Award per smoker per year [Member] | The Smoker Health Defense Association (ADESF) [Member] | |||||
Loss Contingencies [Line Items] | |||||
Damages awarded | R$ 1000 | $ 186 | |||
Smoking And Health Class Actions [Member] | Combustible Products [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 10 | 10 | |||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 43 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Argentina [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 31 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Brazil [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 3 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Canada [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 2 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Chile [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 2 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | China [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 1 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Italy [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 1 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Philippines [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 1 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Turkey [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 1 | ||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | Combustible Products [Member] | Scotland [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 1 | ||||
Subsequent Event [Member] | Smoking And Health Class Actions [Member] | Combustible Products [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cases brought against PM | 9 |
Contingencies (Health Care Cost
Contingencies (Health Care Cost Recovery Litigation) (Details) - Health Care Cost Recovery Actions [Member] | May 21, 2019 | Apr. 14, 2014patient | Oct. 17, 2008 | Mar. 13, 2008 | Feb. 26, 2008 | May 25, 2007 | May 09, 2007 | Feb. 05, 2021litigationCase | Feb. 03, 2020litigationCase | Feb. 04, 2019litigationCase |
Brazil [Member] | Pending Litigation [Member] | The Attorney General of Brazil [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, period of past reimbursements | 6 years | |||||||||
Korea [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, number of patients | patient | 3,484 | |||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Lagos State [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, period of past reimbursements | 20 years | |||||||||
Damages sought, period of future reimbursements | 20 years | |||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Kano State [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, period of past reimbursements | 20 years | |||||||||
Damages sought, period of future reimbursements | 20 years | |||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Gombe State [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, period of past reimbursements | 20 years | |||||||||
Damages sought, period of future reimbursements | 20 years | |||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Oyo State [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, period of past reimbursements | 20 years | |||||||||
Damages sought, period of future reimbursements | 20 years | |||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Ogun State [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought, period of past reimbursements | 20 years | |||||||||
Damages sought, period of future reimbursements | 20 years | |||||||||
Combustible Products [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases brought against PM | 17 | 16 | ||||||||
Combustible Products [Member] | Subsequent Event [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases brought against PM | 17 | |||||||||
Combustible Products [Member] | Subsequent Event [Member] | Brazil [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases brought against PM | 1 | |||||||||
Combustible Products [Member] | Subsequent Event [Member] | Canada [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases brought against PM | 10 | |||||||||
Combustible Products [Member] | Subsequent Event [Member] | Korea [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases brought against PM | 1 | |||||||||
Combustible Products [Member] | Subsequent Event [Member] | Nigeria [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases brought against PM | 5 |
Contingencies (Label-Related Ca
Contingencies (Label-Related Cases) (Details) - Combustible Products [Member] - Individual Label Related Cases [Member] - litigationCase | Feb. 05, 2021 | Feb. 03, 2020 | Feb. 04, 2019 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 5 | 7 | |
Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 5 | ||
Subsequent Event [Member] | Italy [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event [Member] | Chile [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 4 |
Contingencies (Public Civil Act
Contingencies (Public Civil Actions) (Details) - Combustible Products [Member] - Public Civil Actions [Member] - litigationCase | Feb. 05, 2021 | Feb. 03, 2020 | Feb. 04, 2019 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Subsequent Event [Member] | Argentina [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event [Member] | Venezuela [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 |
Contingencies (Other Litigation
Contingencies (Other Litigation) (Details) ฿ in Millions, $ in Millions, ₽ in Billions, ₩ in Billions, ر.س in Billions | Jan. 26, 2017USD ($) | Jan. 26, 2017THB (฿) | Jan. 18, 2016USD ($) | Jan. 18, 2016THB (฿) | Jun. 30, 2020USD ($) | Jun. 30, 2020KRW (₩) | Mar. 31, 2020USD ($) | Mar. 31, 2020THB (฿) | Jan. 31, 2020USD ($) | Jan. 31, 2020KRW (₩) | Nov. 30, 2019USD ($) | Nov. 30, 2019THB (฿) | Sep. 30, 2019USD ($) | Sep. 30, 2019RUB (₽) | Sep. 30, 2019USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) | Dec. 31, 2020SAR (ر.س) |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Tax benefit | $ (2,377) | $ (2,293) | $ (2,445) | ||||||||||||||||||||||
Other Litigation [Member] | Thailand [Member] | The Department of Special Investigations of the Government of Thailand [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency, damages sought, value | $ 658 | ฿ 19,800 | |||||||||||||||||||||||
Amount of fine imposed by trial court | $ 4.3 | ฿ 130 | $ 39.9 | ฿ 1,200 | |||||||||||||||||||||
Other Litigation [Member] | Thailand [Member] | The Department of Special Investigations of the Government of Thailand [Member] | Pending Litigation [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency, damages sought, value | $ 2,700 | ฿ 80,800 | |||||||||||||||||||||||
Other Litigation [Member] | Korea [Member] | The South Korean Board of Audit and Inspection [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Amounts paid | $ 153.7 | ₩ 172 | $ 243 | ₩ 272 | $ 89.3 | ₩ 100 | |||||||||||||||||||
Amount of taxes not underpaid as ruled by trial court | $ 195 | ₩ 218 | |||||||||||||||||||||||
Amount of alleged underpayments not underpaid as ruled by court | $ 48 | ₩ 54 | |||||||||||||||||||||||
Other Litigation [Member] | Eastern Europe [Member] | The Moscow Tax Inspectorate for Major Taxpayers Audit [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Amount of alleged underpayment of excise taxes and VAT claimed by tax authority, including penalties and interest | $ 374 | ₽ 24.3 | |||||||||||||||||||||||
Amount of pre-tax charge related to alleged underpayment of excise taxes and VAT claimed by tax authority, including penalties and interest | $ 374 | ||||||||||||||||||||||||
Amount of after-tax charge related to alleged underpayment of excise taxes and VAT claimed by tax authority, including penalties and interest | $ 315 | ||||||||||||||||||||||||
Tax benefit | $ 59 | ||||||||||||||||||||||||
Other Litigation [Member] | SAUDI ARABIA | Saudi Arabia Customs General Authority Case [Member] | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Additional customs duties ordered to be paid | $ 396 | ر.س 1.5 | |||||||||||||||||||||||
Percent to be paid by subsidiary | 80.00% | 80.00% |
Contingencies (Third-Party Guar
Contingencies (Third-Party Guarantees) (Details) $ in Millions, $ in Millions | Dec. 31, 2020 | Oct. 17, 2020CAD ($) | Oct. 17, 2020USD ($) |
Canadian Government [Member] | Financial Guarantee [Member] | |||
Loss Contingencies [Line Items] | |||
Value of financial guarantee | $ 173 | $ 131 | |
Philip Morris Investment B.V. [Member] | Medicago Inc. [Member] | |||
Loss Contingencies [Line Items] | |||
Ownership percentage | 32.00% |
Sale of Accounts Receivable (De
Sale of Accounts Receivable (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sale of Accounts Receivable [Abstract] | |||
Trade receivables sold and derecognized from the Consolidated Balance Sheets | $ 11.5 | $ 10.7 | |
Trade receivables sold and derecognized that remain uncollected | $ 1.2 | $ 0.9 | $ 1 |
Asset Impairment and Exit Cos_3
Asset Impairment and Exit Costs (Asset Impairment and Exit Costs by Segment) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | $ 149,000,000 | $ 422,000,000 |
Total separation programs | 141,000,000 | 303,000,000 |
Asset impairment charges | 8,000,000 | 119,000,000 |
Switzerland Restructuring, Phase 3 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | $ 0 | |
Expected number of positions eliminated | employee | 230 | |
Switzerland Restructuring, Excluding Phase 3 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected number of positions eliminated | employee | 600 | |
Switzerland Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | $ 149,000,000 | |
Latin America And Canada And South And Southeast Asia [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 80,000,000 | |
Argentina [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 15,000,000 | |
Colombia [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 45,000,000 | |
Pakistan [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 20,000,000 | |
European Union [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment and exit costs | 342,000,000 | |
Total separation programs | 53,000,000 | 251,000,000 |
Asset impairment charges | 4,000,000 | 91,000,000 |
Eastern Europe [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total separation programs | 14,000,000 | 0 |
Asset impairment charges | 1,000,000 | 0 |
Middle East & Africa [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total separation programs | 18,000,000 | 0 |
Asset impairment charges | 1,000,000 | 0 |
South & Southeast Asia [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total separation programs | 22,000,000 | 3,000,000 |
Asset impairment charges | 1,000,000 | 17,000,000 |
East Asia & Australia [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total separation programs | 25,000,000 | 0 |
Asset impairment charges | 1,000,000 | 0 |
Latin America & Canada [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total separation programs | 9,000,000 | 49,000,000 |
Asset impairment charges | $ 0 | $ 11,000,000 |
Asset Impairment and Exit Cos_4
Asset Impairment and Exit Costs (Movement in Exit Cost Liabilities) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Movement in exit cost liabilities | |
Liability balance, January 1, 2020 | $ 191 |
Charges, net | 141 |
Cash spent | (163) |
Currency/other | 11 |
Liability balance, September 30,2020 | $ 180 |
Asset Impairment and Exit Cos_5
Asset Impairment and Exit Costs (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Future cash payments for exit costs expected to be paid | $ 163 | |
Forecast [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Future cash payments for exit costs expected to be paid | $ 150 |
Deconsolidation of RBH (Details
Deconsolidation of RBH (Details) $ in Millions, $ in Millions | Mar. 01, 2019USD ($)litigationCase | Mar. 01, 2019CAD ($)litigationCase | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020litigationCase | Mar. 22, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||
Number of cases decided in favor of plaintiff | litigationCase | 13 | |||||
Marketing Administration and Research Costs [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Deconsolidation amount | $ 239 | |||||
Measurement Input, Discount Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Pending litigation liabilities measurement input | 0.08 | |||||
Measurement Input, Terminal Growth Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Pending litigation liabilities measurement input | 0.025 | |||||
RBH [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | $ 3,519 | |||||
Equity securities | 3,280 | |||||
Tax benefit for reversal of deferred tax liabilities | 49 | |||||
RBH [Member] | Cash [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | 1,323 | |||||
RBH [Member] | Goodwill [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | 1,463 | |||||
RBH [Member] | Other Comprehensive Earnings [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | 529 | |||||
RBH [Member] | Other Assets and Liabilities [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | $ 204 | |||||
Appellate Ruling [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Smoking And Health Class Actions [Member] | Canada [Member] | RBH [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of cases decided in favor of plaintiff | litigationCase | 2 | 2 | ||||
Amount of litigation charge | $ 194 | $ 194 | ||||
Amount of litigation charge net of tax | $ 142 | |||||
Amount of security ordered, funded by defendant | $ 194 | $ 257 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Other assets | $ 697 | $ 766 |
Accrued liabilities - Other | 190 | 194 |
Income taxes and other liabilities | 517 | 569 |
Total lease liabilities | $ 707 | $ 763 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent | us-gaap:OtherAccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | pm:IncomeTaxesAndOtherLiabilitiesNoncurrent | pm:IncomeTaxesAndOtherLiabilitiesNoncurrent |
Operating lease cost | $ 237 | $ 242 |
Short-term lease cost | 49 | 61 |
Variable lease cost | 31 | 29 |
Total lease cost | 317 | 332 |
2021 | 215 | |
2022 | 161 | |
2023 | 110 | |
2024 | 72 | |
2025 | 47 | |
Thereafter | 291 | |
Total lease payments | 896 | |
Less: Interest | 189 | |
Present value of lease liabilities | 707 | 763 |
Cash paid for amounts included in the measurement of lease liabilities in Operating cash flows | 238 | 240 |
Leased assets obtained in exchange for new operating lease liabilities | $ 149 | $ 221 |
Weighted-average remaining lease term (years) | 10 years 1 month 6 days | 9 years 7 months 6 days |
Weighted-average discount rate | 4.30% | 4.40% |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 73 years |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenues | $ 7,444 | $ 7,446 | $ 6,651 | $ 7,153 | $ 7,713 | $ 7,642 | $ 7,699 | $ 6,751 | $ 28,694 | $ 29,805 | $ 29,625 |
Gross profit | 4,872 | 5,030 | 4,472 | 4,751 | 4,935 | 5,037 | 5,034 | 4,286 | 19,125 | 19,292 | 18,867 |
Net earnings attributable to PMI | $ 1,976 | $ 2,307 | $ 1,947 | $ 1,826 | $ 1,616 | $ 1,896 | $ 2,319 | $ 1,354 | $ 8,056 | $ 7,185 | $ 7,911 |
Per share data: | |||||||||||
Basic EPS (in dollars per share) | $ 1.27 | $ 1.48 | $ 1.25 | $ 1.17 | $ 1.04 | $ 1.22 | $ 1.49 | $ 0.87 | $ 5.16 | $ 4.61 | $ 5.08 |
Diluted EPS (in dollars per share) | 1.27 | 1.48 | 1.25 | 1.17 | 1.04 | 1.22 | 1.49 | 0.87 | 5.16 | 4.61 | 5.08 |
Dividends declared (in dollars per share) | $ 1.20 | $ 1.20 | $ 1.17 | $ 1.17 | $ 1.17 | $ 1.17 | $ 1.14 | $ 1.14 | $ 4.74 | $ 4.62 | $ 4.49 |
Uncategorized Items - pm-202012
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201601Member |