Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 22, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,558,540,992 | |
Entity Central Index Key | 0001413329 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | PM | |
Security Exchange Name | NYSE | |
2.900% Notes due 2021 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document 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 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.250% Notes due 2044 | |
Trading Symbol | PM44 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues including excise taxes | $ 20,421 | $ 17,819 | $ 39,776 | $ 36,072 |
Excise taxes on products | 12,827 | 11,168 | 24,597 | 22,268 |
Net revenues (Note 8) | 7,594 | 6,651 | 15,179 | 13,804 |
Cost of sales | 2,353 | 2,179 | 4,627 | 4,581 |
Gross profit | 5,241 | 4,472 | 10,552 | 9,223 |
Marketing, administration and research costs (Note 16) | 2,093 | 1,722 | 3,942 | 3,666 |
Amortization of intangibles | 19 | 19 | 37 | 37 |
Operating income | 3,129 | 2,731 | 6,573 | 5,520 |
Interest expense, net | 161 | 162 | 328 | 291 |
Pension and other employee benefit costs (Note 3) | 27 | 22 | 55 | 45 |
Earnings before income taxes | 2,941 | 2,547 | 6,190 | 5,184 |
Provision for income taxes | 646 | 528 | 1,343 | 1,124 |
Equity investments and securities (income)/loss, net | (3) | (30) | (46) | 24 |
Net earnings | 2,298 | 2,049 | 4,893 | 4,036 |
Net earnings attributable to noncontrolling interests | 126 | 102 | 303 | 263 |
Net earnings attributable to PMI | $ 2,172 | $ 1,947 | $ 4,590 | $ 3,773 |
Per share data: | ||||
Basic earnings per share (in dollars per share) | $ 1.39 | $ 1.25 | $ 2.94 | $ 2.42 |
Diluted earnings per share (in dollars per share) | $ 1.39 | $ 1.25 | $ 2.93 | $ 2.42 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 2,298 | $ 2,049 | $ 4,893 | $ 4,036 |
Change in currency translation adjustments: | ||||
Unrealized gains (losses), net of income taxes | 4 | 797 | 227 | (785) |
Change in net loss and prior service cost: | ||||
Net gains (losses) and prior service costs, net of income taxes | 20 | 0 | 20 | 0 |
Amortization of net losses, prior service costs and net transition costs, net of income taxes | 81 | 75 | 162 | 149 |
Change in fair value of derivatives accounted for as hedges: | ||||
Gains (losses) recognized, net of income taxes | 1 | (32) | 77 | (6) |
(Gains) losses transferred to earnings, net of income taxes | (19) | (6) | 2 | (15) |
Total other comprehensive earnings (losses) | 87 | 834 | 488 | (657) |
Total comprehensive earnings | 2,385 | 2,883 | 5,381 | 3,379 |
Less comprehensive earnings attributable to: | ||||
Noncontrolling interests | 132 | 171 | 275 | 252 |
Comprehensive earnings attributable to PMI | $ 2,253 | $ 2,712 | $ 5,106 | $ 3,127 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Income taxes on currency translation adjustments | $ 60 | $ 56 | $ (25) | $ (40) |
Income taxes on gains (losses) and prior service costs | (5) | 0 | (5) | 0 |
Income taxes on Amortization of net losses, prior service costs and net transition costs | (18) | (17) | (36) | (34) |
Income taxes on gains (losses) recognized on derivatives accounted for as hedges | 2 | 6 | (12) | 1 |
Income taxes on (gains) losses transferred to earnings on derivatives accounted for as hedges | $ 0 | $ 1 | $ 0 | $ 2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 4,915 | $ 7,280 |
Trade receivables (less allowances of $57 in 2021 and $23 in 2020) | 3,536 | 2,905 |
Other receivables (less allowances of $37 in 2021 and $38 in 2020) | 909 | 856 |
Inventories: | ||
Leaf tobacco | 1,918 | 2,063 |
Other raw materials | 1,950 | 1,712 |
Finished product | 4,822 | 5,816 |
Total inventory, net | 8,690 | 9,591 |
Other current assets | 693 | 860 |
Total current assets | 18,743 | 21,492 |
Property, plant and equipment, at cost | 14,615 | 14,909 |
Less: accumulated depreciation | 8,640 | 8,544 |
Total property, plant and equipment, net | 5,975 | 6,365 |
Goodwill (Note 4) | 5,842 | 5,964 |
Other intangible assets, net (Note 4) | 1,958 | 2,019 |
Equity investments (Note 12) | 4,633 | 4,798 |
Deferred income taxes | 1,112 | 1,410 |
Other assets (less allowances of $22 in 2021 and $22 in 2020) | 2,423 | 2,767 |
TOTAL ASSETS | 40,686 | 44,815 |
LIABILITIES | ||
Short-term borrowings (Note 10) | 136 | 244 |
Current portion of long-term debt (Note 10) | 1,608 | 3,124 |
Accounts payable | 2,630 | 2,780 |
Accrued liabilities: | ||
Marketing and selling | 722 | 782 |
Taxes, except income taxes | 5,244 | 6,403 |
Employment costs | 1,016 | 1,189 |
Dividends payable | 1,889 | 1,880 |
Other | 1,859 | 2,122 |
Income taxes | 780 | 1,091 |
Total current liabilities | 15,884 | 19,615 |
Long-term debt (Note 10) | 27,414 | 28,168 |
Deferred income taxes | 505 | 684 |
Employment costs | 4,054 | 4,470 |
Income taxes and other liabilities | 2,029 | 2,509 |
Total liabilities | 49,886 | 55,446 |
Contingencies (Note 8) | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | ||
Common stock, no par value (2,109,316,331 shares issued in 2021 and 2020) | 0 | 0 |
Additional paid-in capital | 2,143 | 2,105 |
Earnings reinvested in the business | 32,465 | 31,638 |
Accumulated other comprehensive losses | (10,665) | (11,181) |
Total stockholders' equity before treasury stock | 23,943 | 22,562 |
Less: cost of repurchased stock (550,736,681 and 551,942,600 shares in 2021 and 2020, respectively) | 35,056 | 35,129 |
Total PMI stockholders’ deficit | (11,113) | (12,567) |
Noncontrolling interests | 1,913 | 1,936 |
Total stockholders’ deficit | (9,200) | (10,631) |
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ 40,686 | $ 44,815 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 57 | $ 23 |
Other receivables, allowances | 37 | 38 |
Other assets, allowances | $ 22 | $ 22 |
Common stock, shares issued (in shares) | 2,109,316,331 | 2,109,316,331 |
Repurchased stock, shares (in shares) | 550,736,681 | 551,942,600 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||
Net earnings | $ 4,893 | $ 4,036 | |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation and amortization | 484 | 470 | |
Deferred income tax (benefit) provision | 2 | (94) | |
Asset impairment and exit costs, net of cash paid (Note 16) | (26) | (2) | |
Cash effects of changes in: | |||
Receivables, net | (627) | (338) | |
Inventories | 767 | (20) | |
Accounts payable | (16) | (164) | |
Accrued liabilities and other current assets | (940) | (780) | |
Income taxes | (459) | (233) | |
Pension plan contributions | (197) | (52) | |
Other | 184 | 213 | |
Net cash provided by operating activities | 4,065 | 3,036 | |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | |||
Capital expenditures | (307) | (310) | |
Purchases of businesses, net of acquired cash (Note 17) | (27) | 0 | |
Equity investments | 0 | (3) | |
Net investment hedges | 147 | 174 | |
Other | 59 | 5 | |
Net cash used in investing activities | (128) | (134) | |
Short-term borrowing activity by original maturity: | |||
Net issuances (repayments) - maturities of 90 days or less | (108) | (75) | |
Issuances - maturities longer than 90 days | 0 | 45 | |
Long-term debt proceeds | 0 | 2,230 | |
Long-term debt repaid | (1,979) | (3,641) | |
Dividends paid | (3,752) | (3,658) | |
Payments to noncontrolling interests and Other | (284) | (404) | |
Net cash used in financing activities | (6,123) | (5,503) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (179) | (57) | |
Cash, cash equivalents and restricted cash: | |||
Increase (Decrease) | [1] | (2,365) | (2,658) |
Balance at beginning of period | [1] | 7,285 | 6,865 |
Balance at end of period | [1] | $ 4,920 | $ 4,207 |
[1] | The amounts for cash and cash equivalents shown above include restricted cash of $5 million and $7 million as of June 30, 2021 and 2020, respectively, and $5 million and $4 million as of December 31, 2020 and 2019, respectively, which were included in other current assets in the condensed consolidated balance sheets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 5 | $ 5 | $ 7 | $ 4 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested in the Business | Accumulated Other Comprehensive Losses | Cost of Repurchased Stock | Noncontrolling Interests |
Beginning balance at Dec. 31, 2019 | $ (9,599) | $ 0 | $ 2,019 | $ 30,987 | $ (9,363) | $ (35,220) | $ 1,978 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 4,036 | 3,773 | 263 | ||||
Other comprehensive earnings (losses), net of income taxes | (657) | (646) | (11) | ||||
Issuance of stock awards | 94 | 9 | 85 | ||||
Dividends declared | (3,657) | (3,657) | |||||
Payments to noncontrolling interests | (339) | (339) | |||||
Other | 2 | 16 | (14) | ||||
Ending balance at Jun. 30, 2020 | (10,120) | 0 | 2,044 | 31,103 | (10,009) | (35,135) | 1,877 |
Beginning balance at Mar. 31, 2020 | (11,063) | 0 | 1,992 | 30,984 | (10,774) | (35,146) | 1,881 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 2,049 | 1,947 | 102 | ||||
Other comprehensive earnings (losses), net of income taxes | 834 | 765 | 69 | ||||
Issuance of stock awards | 45 | 34 | 11 | ||||
Dividends declared | (1,828) | (1,828) | |||||
Payments to noncontrolling interests | (157) | (157) | |||||
Other | 0 | 18 | (18) | ||||
Ending balance at Jun. 30, 2020 | (10,120) | 0 | 2,044 | 31,103 | (10,009) | (35,135) | 1,877 |
Beginning balance at Dec. 31, 2020 | (10,631) | 0 | 2,105 | 31,638 | (11,181) | (35,129) | 1,936 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 4,893 | 4,590 | 303 | ||||
Other comprehensive earnings (losses), net of income taxes | 488 | 516 | (28) | ||||
Issuance of stock awards | 111 | 38 | 73 | ||||
Dividends declared | (3,763) | (3,763) | |||||
Payments to noncontrolling interests | (298) | (298) | |||||
Ending balance at Jun. 30, 2021 | (9,200) | 0 | 2,143 | 32,465 | (10,665) | (35,056) | 1,913 |
Beginning balance at Mar. 31, 2021 | (9,574) | 0 | 2,080 | 32,178 | (10,746) | (35,060) | 1,974 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 2,298 | 2,172 | 126 | ||||
Other comprehensive earnings (losses), net of income taxes | 87 | 81 | 6 | ||||
Issuance of stock awards | 67 | 63 | 4 | ||||
Dividends declared | (1,885) | (1,885) | |||||
Payments to noncontrolling interests | (193) | (193) | |||||
Ending balance at Jun. 30, 2021 | $ (9,200) | $ 0 | $ 2,143 | $ 32,465 | $ (10,665) | $ (35,056) | $ 1,913 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 1.20 | $ 1.17 | $ 2.40 | $ 2.34 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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. (also referred to herein as the U.S., the United States or the United States of America), 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 addition, PMI ships versions of 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 into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol. Basis of Presentation The interim condensed consolidated financial statements of PMI are unaudited. These interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and such principles are applied on a consistent basis. It is the opinion of PMI’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected therein. All such adjustments were of a normal recurring nature. Net revenues and net earnings attributable to PMI for any interim period are not necessarily indicative of results that may be expected for the entire year. Certain prior years' amounts have been reclassified to conform with the current year's presentation. The changes did not have a material impact on PMI's consolidated financial position, results of operations or cash flows in any of the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and related notes, which appear in PMI’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [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 June 30, 2021, shares available for grant under the 2017 Plan were 14,867,021. 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 June 30, 2021, shares available for grant under the plan were 914,413. Restricted share unit (RSU) awards During the six months ended June 30, 2021 and 2020, shares granted to eligible employees and the weighted-average grant date fair value per share related to RSU awards were as follows: Number of Weighted-Average Grant Date Fair Value Per RSU Award Granted 2021 1,981,480 $ 81.91 2020 1,692,650 $ 85.91 Compensation expense related to RSU awards was as follows: Compensation Expense Related to RSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 $ 73 $ 33 2020 $ 68 $ 29 As of June 30, 2021, PMI had $211 million of total unrecognized compensation cost related to non-vested RSU awards. The cost is recognized over the original restriction period of the awards, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. During the six months ended June 30, 2021, 1,106,129 RSU awards vested. The grant date fair value of all the vested awards was approximately $108 million. The total fair value of RSU awards that vested during the six months ended June 30, 2021 was approximately $96 million. Performance share unit (PSU) awards During the six months ended June 30, 2021 and 2020, PMI granted PSU awards to certain executives. 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 six months ended June 30, 2021 and 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 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. During the six months ended June 30, 2021 and 2020, shares granted to eligible employee and the grant date fair value per share related to PSU awards were as follows: Number of Shares Granted Grant Date Grant Date (Per Share) (Per Share) 2021 574,410 $ 81.86 $ 106.93 2020 671,220 $ 86.04 $ 80.36 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: 2021 2020 Risk-free interest rate (a) 0.2 % 1.4 % Expected volatility (b) 31.7 % 23.5 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. Compensation expense related to PSU awards was as follows: Compensation Expense Related to PSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 $ 46 $ 34 2020 $ 32 $ 9 As of June 30, 2021, PMI had $71 million of total unrecognized compensation cost related to non-vested PSU awards. The cost is recognized over the performance cycle of the awards, or upon death, disability or reaching the age of 58. During the six months ended June 30, 2021, 189,839 PSU awards vested. The grant date fair value of all the vested awards was approximately $21 million. The total fair value of PSU awards that vested during the six months ended June 30, 2021 was approximately $16 million. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
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 condensed consolidated statements of earnings consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Net pension costs (income) $ (2) $ (8) $ (1) $ (4) Net postemployment costs 53 49 25 24 Net postretirement costs 4 4 3 2 Total pension and other employee benefit costs $ 55 $ 45 $ 27 $ 22 Pension Plans Components of Net Periodic Benefit Cost Net periodic pension cost consisted of the following: Pension (1) For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Service cost $ 147 $ 130 $ 72 $ 65 Interest cost 25 35 12 18 Expected return on plan assets (186) (173) (91) (87) Amortization: Net loss 158 129 78 64 Prior service cost 1 1 — 1 Net periodic pension cost $ 145 $ 122 $ 71 $ 61 (1) Primarily non-U.S. based defined benefit retirement plans. Employer Contributions 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. Employer contributions of $197 million were made to the pension plans during the six months ended June 30, 2021. Currently, PMI anticipates making additional contributions during the remainder of 2021 of approximately $78 million 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 6 Months Ended |
Jun. 30, 2021 | |
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 Balances, December 31, 2020 $ 1,434 $ 317 $ 86 $ 2,915 $ 559 $ 653 $ 5,964 Changes due to: Acquisitions 29 — — — — — 29 Currency (30) (8) 2 (86) (17) (12) (151) Balances, June 30, 2021 $ 1,433 $ 309 $ 88 $ 2,829 $ 542 $ 641 $ 5,842 At June 30, 2021, goodwill primarily reflects PMI’s acquisitions in Colombia, Greece, Indonesia, Mexico, Pakistan and Serbia, as well as the business combination in the Philippines. The increase in goodwill from acquisitions was due to the preliminary purchase price allocation of AG Snus Aktieselskab ("AG Snus"), a Danish based company, and it's Swedish subsidiary Tobacco House of Sweden AB, fully owned by AG Snus. For further details, see Note 17. Acquisitions . Details of other intangible assets were as follows: June 30, 2021 December 31, 2020 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,261 $ 1,261 $ 1,289 $ 1,289 Amortizable intangible assets: Trademarks 12 years 1,233 $ 621 612 1,233 $ 594 639 Distribution networks 7 years 113 79 34 115 78 37 Other* 8 years 105 54 51 104 50 54 Total other intangible assets $ 2,712 $ 754 $ 1,958 $ 2,741 $ 722 $ 2,019 * 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, 2020 was due to currency movements of ($28 million). The decrease in the gross carrying amount of amortizable intangible assets from December 31, 2020, was mainly due to currency movements of ($8 million), partially offset by the preliminary purchase price allocation of AG Snus trademarks in the amount of $7 million. For further details, see Note 17. Acquisitions . The change in the accumulated amortization from December 31, 2020, was mainly due to the 2021 amortization of $37 million, partially offset by currency movements of ($5 million). Amortization expense for each of the next five years is estimated to be $75 million or less, assuming no additional transactions occur that require the amortization of intangible assets. During the second quarter of 2021, PMI completed its annual review of goodwill and non-amortizable intangible assets for potential impairment, and no impairment charges were required as a result of this review. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 exposures. 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 June 30, 2021, PMI had contracts with aggregate notional amounts of $22.7 billion of which $3.5 billion related to cash flow hedges, $7.6 billion related to hedges of net investments in foreign operations and $11.6 billion related to other derivatives that primarily offset currency exposures on intercompany financing. The fair value of PMI’s derivative contracts included in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value At At At At (in millions) Balance Sheet Classification June 30, 2021 December 31, 2020 Balance Sheet Classification June 30, 2021 December 31, 2020 Derivative contracts designated as hedging instruments Other current assets $ 187 $ 130 Other accrued liabilities $ 92 $ 241 Other assets — 6 Income taxes and other liabilities 424 605 Derivative contracts not designated as hedging instruments Other current assets 104 46 Other accrued liabilities 28 207 Other assets — — Income taxes and other liabilities 38 57 Total gross amount derivatives contracts presented in the condensed consolidated balance sheets $ 291 $ 182 $ 582 $ 1,110 Gross amounts not offset in the condensed consolidated balance sheets Finance instruments (140) (156) (140) (156) Cash collateral received/pledged (126) (23) (425) (892) Net amount $ 25 $ 3 $ 17 $ 62 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 June 30, 2021 and December 31, 2020. For the six months ended June 30, 2021 and 2020, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Six Months Ended June 30, 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 2021 2020 2021 2020 2021 2020 Derivative contracts designated as hedging instruments: Cash flow hedges $ 89 $ (7) Net revenues $ 17 $ 4 Cost of sales — 7 Marketing, administration and research costs (12) 11 Interest expense, net (7) (5) Net investment hedges (a) 192 269 Interest expense, net (b) $ 82 $ 104 Derivative contracts not designated as hedging instruments: Interest expense, net 25 48 Marketing, administration and research costs (c) 196 (63) Total $ 281 $ 262 $ (2) $ 17 $ 303 $ 89 (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 For the three months ended June 30, 2021 and 2020, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Three Months Ended June 30, 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 2021 2020 2021 2020 2021 2020 Derivative contracts designated as hedging instruments: Cash flow hedges $ (1) $ (38) Net revenues $ 17 $ 1 Cost of sales — 3 Marketing, administration and research costs 6 6 Interest expense, net (4) (3) Net investment hedges (a) (126) (138) Interest expense, net (b) $ 40 $ 48 Derivative contracts not designated as hedging instruments: Interest expense, net 14 14 Marketing, administration and research costs (c) (91) (92) Total $ (127) $ (176) $ 19 $ 7 $ (37) $ (30) (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 condensed consolidated statements of earnings. As of June 30, 2021, PMI has hedged forecasted transactions for periods not exceeding the next twelve 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 condensed 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. For the six months ended June 30, 2021 and 2020, 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 adjustments, was $110 million and $(103) million, respectively. For the three months ended June 30, 2021 and 2020, 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 adjustments, was $(71) million and $(98) million, respectively. The premiums paid for, and settlements of, net investment hedges are included in investing cash flows on PMI’s condensed 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 condensed 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: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Gain/(loss) as beginning of period $ (85) $ 3 $ 12 $ 20 Derivative (gains)/losses transferred to earnings 2 (15) (19) (6) Change in fair value 77 (6) 1 (32) Gain/(loss) as of June 30, $ (6) $ (18) $ (6) $ (18) At June 30, 2021, PMI expects $26 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the condensed consolidated statement of earnings within the next 12 months. These gains 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 PMI is exposed to credit loss in the event of non-performance by counterparties. While PMI does not anticipate non-performance, its risk is limited to the fair value of the financial instruments less any cash collateral received or pledged. PMI actively monitors its exposure to credit risk through the use of credit approvals and credit limits and by selecting and continuously monitoring a diverse group of major international banks and financial institutions as counterparties. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share (“EPS”) were calculated using the following: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Net earnings attributable to PMI $ 4,590 $ 3,773 $ 2,172 $ 1,947 Less distributed and undistributed earnings attributable to share-based payment awards 14 10 6 5 Net earnings for basic and diluted EPS $ 4,576 $ 3,763 $ 2,166 $ 1,942 Weighted-average shares for basic EPS 1,558 1,557 1,558 1,558 Plus contingently issuable performance stock units (PSUs) 2 — 2 — Weighted-average shares for diluted EPS 1,560 1,557 1,560 1,558 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. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
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. In July 2021, the Latin America & Canada operating segment was renamed as the Americas operating 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. 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. Segment data were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Net revenues: European Union $ 6,058 $ 5,010 $ 3,149 $ 2,475 Eastern Europe 1,691 1,571 895 783 Middle East & Africa 1,361 1,580 560 704 South & Southeast Asia 2,219 2,140 1,046 889 East Asia & Australia 2,986 2,687 1,514 1,432 Latin America & Canada 864 816 430 368 Net revenues $ 15,179 $ 13,804 $ 7,594 $ 6,651 Operating income: European Union $ 3,131 $ 2,336 $ 1,641 $ 1,178 Eastern Europe 575 365 314 266 Middle East & Africa 351 558 16 237 South & Southeast Asia 860 888 331 289 East Asia & Australia 1,410 1,155 715 669 Latin America & Canada 246 218 112 92 Operating income $ 6,573 $ 5,520 $ 3,129 $ 2,731 PMI's net revenues by product category were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Net revenues: Combustible products: European Union $ 4,113 $ 3,855 $ 2,162 $ 1,945 Eastern Europe 1,047 1,045 555 522 Middle East & Africa 1,307 1,528 527 696 South & Southeast Asia 2,216 2,140 1,045 889 East Asia & Australia 1,259 1,272 611 630 Latin America & Canada 840 803 418 363 Total combustible products $ 10,781 $ 10,643 $ 5,318 $ 5,045 Reduced-risk products: European Union $ 1,945 $ 1,155 $ 987 $ 530 Eastern Europe 644 526 340 261 Middle East & Africa 54 52 33 8 South & Southeast Asia 3 — 1 — East Asia & Australia 1,727 1,415 903 802 Latin America & Canada 24 13 12 5 Total reduced-risk products $ 4,398 $ 3,161 $ 2,276 $ 1,606 Total PMI net revenues $ 15,179 $ 13,804 $ 7,594 $ 6,651 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Items affecting the comparability of results from operations were as follows: • Asset impairment and exit costs - See Note 16. Asset Impairment and Exit Costs for a breakdown of these costs by segment for the six months and three months ended June 30, 2021 and 2020. • Saudi Arabia customs assessments - See Note 8. Contingencies for the details of the $246 million reduction in net revenues of combustible products included in the Middle East & Africa segment for the six months and three months ended June 30, 2021. 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. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 8. 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 Item 8, Note 20. Deconsolidation of RBH of PMI's Annual Report on Form 10-K for the year ended December 31, 2020, RBH's financial results have been deconsolidated from our consolidated financial statements since March 22, 2019. As part of the CCAA proceedings, there is currently a comprehensive stay up to and including September 30, 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 cigarette 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 suffers allegedly 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 $12.3 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 $2.5 billion)). In addition, the trial court awarded CAD 90,000 (approximately $71,600) in punitive damages, allocating CAD 30,000 (approximately $23,900) 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 $180 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 $603 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 $10.7 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 $2.1 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 were 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 $875 million), into trust accounts within 60 days. RBH’s share of the deposit was 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 cigarette 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 $104 million) in punitive damages, allocating CAD 46 million (approximately $37 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 $45 million) to RBH. See the Blais description above and Item 8, Note 20. Deconsolidation of RBH in PMI's Annual Report on Form 10-K for the year ended December 31, 2020 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 July 23, 2021, July 24, 2020 and July 23, 2019:¹ Type of Case Number of Cases Pending as of July 23, 2021 Number of Cases Pending as of July 24, 2020 Number of Cases Pending as of July 23, 2019 Individual Smoking and Health Cases 44 44 52 Smoking and Health Class Actions 9 10 10 Health Care Cost Recovery Actions 17 17 17 Label-Related Class Actions — — 1 Individual Label-Related Cases 4 5 6 Public Civil Actions 2 2 2 Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 515 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. Fourteen cases have had decisions in favor of plaintiffs. Ten of these cases have subsequently reached final resolution in our favor and four remain on appeal. The table below lists the verdict and significant post-trial developments in the four 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 $12.3 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 $2.5 billion)). The trial court awarded CAD 90,000 (approximately $71,600) in punitive damages, allocating CAD 30,000 (approximately $23,900) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $796 million) of the compensatory damage award, CAD 200 million (approximately $159 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 $104 million) in punitive damages, allocating CAD 46 million (approximately $37 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 $1,141), 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. On April 19, 2021, the Supreme Court of the Province of Buenos Aires rejected plaintiff's extraordinary appeal. On May 17, 2021 plaintiff filed a federal extraordinary appeal to the Federal Supreme Court. On June 16, 2021 our subsidiary filed its reply to the federal extraordinary appeal. Date Location of Type of Verdict Post-Trial June 17, 2021 Argentina/Claudia Milano Individual Action On June 17, 2021, the Civil Court No. 9 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded her smoking cessation treatments, ARS 150,000 (approximately $1,556), in compensatory and moral damages, and ARS 4,000,000 (approximately $41,500) in punitive damages, plus interest and costs. The trial court found that our subsidiary failed to warn plaintiff of the risk of becoming addicted to cigarettes. On July 2, 2021, our subsidiary filed its notice of appeal. In addition, plaintiff filed an appeal challenging the dismissal of the claim for psychological damages. As required by local law, our subsidiary will have to deposit the damages awarded, plus interest and costs, in total ARS 6,114,428 (approximately $63,438), into a court escrow account. Our subsidiary plans to challenge the amount determined by the court. If our subsidiary ultimately prevails on appeal, the deposited amounts will be returned to our subsidiary. 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 July 23, 2021, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 44 cases brought by individual plaintiffs in Argentina (31), Brazil (3), Canada (2), Chile (2), China (1), Italy (1), the Philippines (1), Turkey (1) and Scotland (1), as well as 1 case brought by an individual plaintiff in the United States District Court for the District of Oregon in May 2021. The provisions of the 2008 Share Distribution Agreement between PMI and Altria provide for indemnities to PMI for certain liabilities concerning tobacco products as described above under the caption " Tobacco-Related Litigation, " compared with 44 such cases on July 24, 2020, and 52 cases on July 23, 2019; and • 9 cases brought on behalf of classes of individual plaintiffs in Canada, compared with 10 such cases on July 24, 2020 and 10 such cases on July 23, 2019. The class actions pending in Canada are described above under the caption “ Smoking and Health Litigation — Canada. ” 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 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Income tax provisions for jurisdictions outside the United States of America, as well as state and local income tax provisions, were determined on a separate company basis, and the related assets and liabilities were recorded in PMI’s condensed consolidated balance sheets. On March 11, 2021, the American Rescue Plan Act of 2021 ("the Act") was signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. As of June 30, 2021, PMI has determined that the Act had no significant impact on PMI's effective tax rate. PMI’s effective tax rates for the six months and three months ended June 30, 2021 were 21.7% and 22.0%, respectively. PMI’s effective tax rates for the six months and three months ended June 30, 2020 were 21.7% and 20.7%, respectively. The effective tax rate for the six months ended June 30, 2021 was favorably impacted by the corporate income tax rate reduction in the Philippines (enacted in the first quarter of 2021). The effective tax rate for the six months ended June 30, 2020 was favorably impacted by the corporate income tax rate reduction in Indonesia (enacted in the second quarter of 2020). PMI estimates that its full-year 2021 effective tax rate will be around 22%, excluding discrete tax events. Changes in currency exchange rates, earnings mix by taxing jurisdiction or future regulatory developments may have an impact on the effective tax rates, which PMI monitors each quarter. Significant judgment is required in determining income tax provisions and in evaluating tax positions. 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 to five years. 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. |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness: Short-term Borrowings: PMI's short-term borrowings, consisting of bank loans to certain PMI subsidiaries at June 30, 2021 and December 31, 2020, had a carrying value of $136 million and $244 million, respectively. The fair values of PMI’s short-term borrowings, based on current market interest rates, approximate carrying value. Long-term Debt: At June 30, 2021 and December 31, 2020, PMI’s long-term debt consisted of the following: (in millions) June 30, 2021 December 31, 2020 U.S. dollar notes, 0.875% to 6.375% (average interest rate 3.232%), due through 2044 $ 20,134 $ 21,221 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.995%), due through 2039 8,082 9,253 Swiss franc notes, 1.625% to 2.000% (average interest rate 1.830%), due through 2024 597 622 Other (average interest rate 3.724%), due through 2025 (a) 209 196 Carrying value of long-term debt 29,022 31,292 Less current portion of long-term debt 1,608 3,124 $ 27,414 $ 28,168 (a) Includes mortgage debt in Switzerland as well as $56 million and $37 million in finance leases at June 30, 2021 and December 31, 2020, 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 June 30, 2021, the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: (in millions) June 30, 2021 Level 1 $ 31,789 Level 2 167 For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Item 8, Note 2. Summary of Significant Accounting Policies of PMI's Annual Report on Form 10-K for the year ended December 31, 2020. Credit Facilities: 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 of $1.75 billion. At June 30, 2021, PMI's total committed credit facilities were as follows: (in billions) Type Committed 364-day revolving credit, expiring February 1, 2022 $ 1.75 Multi-year revolving credit, expiring October 1, 2022 3.50 Multi-year revolving credit, expiring February 10, 2025 (a) 2.00 Total facilities $ 7.25 (a) On January 29, 2021, PMI 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 . Effective July 2, 2021, the total facility amount for this additional year is $1.95 billion. At June 30, 2021, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses | 6 Months Ended |
Jun. 30, 2021 | |
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 At At (in millions) June 30, 2021 December 31, 2020 June 30, 2020 Currency translation adjustments $ (6,586) $ (6,843) $ (6,311) Pension and other benefits (4,073) (4,253) (3,680) Derivatives accounted for as hedges (6) (85) (18) Total accumulated other comprehensive losses $ (10,665) $ (11,181) $ (10,009) 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, are shown on the condensed consolidated statements of comprehensive earnings for the six months and three months ended June 30, 2021 and 2020. For additional information, see Note 3. Benefit Plans for disclosures related to PMI's pension and other benefits and Note 5. Financial Instruments for disclosures related to derivative financial instruments. |
Related Parties - Equity Invest
Related Parties - Equity Investments and Other | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parties, Equity Investments and Other | Related Parties - Equity Investments and Other: Equity Method Investments: At June 30, 2021 and December 31, 2020, PMI had total equity method investments of $907 million and $966 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 June 30, 2021 and December 31, 2020 exceeded our share of the investees' book value by $773 million and $773 million, respectively. The difference between the investment carrying value and the amount of underlying equity in net assets, excluding $742 million and $745 million attributable to goodwill as of June 30, 2021 and December 31, 2020, respectively, is being amortized on a straight-line basis over the underlying assets' estimated useful lives of 10 to 20 years. At June 30, 2021 and December 31, 2020, PMI received year-to-date dividends from equity method investees of $73 million and $79 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 condensed 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 Item 8, Note 20. Deconsolidation of RBH , in PMI's Annual Report on Form 10-K for the year ended December 31, 2020. 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 $242 million at June 30, 2021. Unrealized pre-tax gain (loss) was not material for the six months and three months ended June 30, 2021. 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 Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Net revenues: Megapolis Group $ 1,038 $ 1,026 $ 555 $ 530 Other 560 523 280 242 Net revenues (a) $ 1,598 $ 1,549 $ 835 $ 772 Expenses: Other $ 33 $ 27 $ 16 $ 8 Expenses $ 33 $ 27 $ 16 $ 8 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: (in millions) At June 30, 2021 At December 31, 2020 Receivables: Megapolis Group $ 521 $ 209 Other 282 156 Receivables $ 803 $ 365 Payables: Other $ 14 $ 13 Payables $ 14 $ 13 |
Sale of Accounts Receivable
Sale of Accounts Receivable | 6 Months Ended |
Jun. 30, 2021 | |
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 condensed 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 as of June 30, 2021 and June 30, 2020. 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. Cumulative trade receivables sold, including excise taxes, for the six months ended June 30, 2021 and 2020, were $5.5 billion. PMI’s operating cash flows were positively impacted by the amount of the trade receivables sold and derecognized from the condensed consolidated balance sheets, which remained outstanding with the unaffiliated financial institutions. The trade receivables sold that remained outstanding under these arrangements as of June 30, 2021 and June 30, 2020, were $0.7 billion, and $0.6 billion, respectively. The net proceeds received are included in cash provided by operating activities in the condensed consolidated statements of cash flows. The difference between the carrying amount of the trade receivables sold and the sum of |
Product Warranty
Product Warranty | 6 Months Ended |
Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty | Product Warranty: PMI's heat-not-burn devices and e-vapor products 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 June 30, 2021 and December 31, 2020, these amounts were as follows: (in millions) At June 30, 2021 At December 31, 2020 Balance at beginning of period $ 137 $ 140 Changes due to: Warranties issued 80 242 Settlements (99) (254) Currency/Other — 9 Balance at end of period $ 118 $ 137 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases: The components of PMI’s lease cost were as follows for the six months and three months ended June 30, 2021 and 2020: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Operating lease cost $ 126 $ 117 $ 66 $ 57 Short-term lease cost 25 25 15 12 Variable lease cost 14 15 7 7 Total lease cost $ 165 $ 157 $ 88 $ 76 |
Asset Impairment and Exit Costs
Asset Impairment and Exit Costs | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs | Asset Impairment and Exit Costs: For the six months and three months ended June 30, 2021, PMI recorded total pre-tax asset impairment and exit costs of $127 million and $79 million, respectively. For the six months and three months ended June 30, 2020, PMI recorded total pre-tax asset impairment and exit costs of $71 million. The total pre-tax asset impairment and exit costs were included in marketing, administration and research costs on the condensed consolidated statements of earnings. South Korea In the first quarter of 2021, PM Korea commenced the implementation of a new business operating model, which requires the restructuring of its current distribution agreements. As a result, PMI recorded exit costs of $26 million in the first quarter of 2021 related to contract terminations with certain distributors; exit costs will continue to be recorded as the agreements are executed. There were no exit costs incurred in the second quarter of 2021 related to this restructuring of distribution agreements in South Korea. The implementation of the new business operating model is expected to be completed in the second half of 2021. 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. Additional phases commenced during the first quarter of 2021. The consultation procedures for these phases were completed in June 2021, impacting approximately 130 positions. Additionally, since the commencement of this multi-phase restructuring project in 2020, PMI launched a voluntary separation program in Switzerland for certain eligible employees and announced the outsourcing of certain activities in Argentina, Indonesia, Poland and the United States. This multi-phase restructuring project is expected to be completed in the second half of 2021 upon finalization of the voluntary separation program in Switzerland. For the six months and three months ended June 30, 2021, PMI recorded pre-tax charges of $101 million and $79 million, respectively, and for the six months and three months ended June 30, 2020, PMI recorded pre-tax charges of $71 million, related to the organizational design optimization. Since inception of this multi-phase restructuring project in 2020 through June 30, 2021, approximately 950 positions in total were impacted, resulting in cumulative pre-tax charges of $250 million related to the organizational design optimization program. Of this cumulative pre-tax amount, $242 million related to separation program charges and $8 million related to asset impairment charges. The amounts related to the potential pension settlement accounting impact of the restructuring, which could be significant, have not been reflected in 2021 as the full-year thresholds for accounting were not expected to be exceeded as of June 30, 2021. Asset Impairment and Exit Costs by Segment PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Separation programs: (1) European Union $ 44 $ 24 $ 35 $ 24 Eastern Europe 9 6 7 6 Middle East & Africa 10 8 8 8 South & Southeast Asia 13 10 10 10 East Asia & Australia 20 12 15 12 Latin America & Canada 5 4 4 4 Total separation programs 101 64 79 64 Contract termination charges: East Asia & Australia 26 — — — Total contract termination charges 26 — — — Asset impairment charges: (1) European Union — 3 — 3 Eastern Europe — 1 — 1 Middle East & Africa — 1 — 1 South & Southeast Asia — 1 — 1 East Asia & Australia — 1 — 1 Latin America & Canada — — — — Total asset impairment charges — 7 — 7 Asset impairment and exit costs $ 127 $ 71 $ 79 $ 71 (1) Organizational design optimization pre-tax charges in 2021 and 2020 were allocated across all operating segments. Movement in Exit Cost Liabilities The movement in exit cost liabilities for the six months ended June 30, 2021 was as follows: (in millions) Liability balance, January 1, 2021 $ 180 Charges, net 127 Cash spent (153) Currency/other (6) Liability balance, June 30, 2021 $ 148 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions: In May 2021, PMI acquired 100% of AG Snus Aktieselskab ("AG Snus"), a Danish based company, and its Swedish subsidiary Tobacco House of Sweden AB fully owned by AG Snus, which operates in the oral tobacco (i.e. snus) and modern oral (i.e. nicotine pouches) product categories. The purchase price was $27 million in cash, net of cash acquired, with additional contingent payments of up to $10 million, primarily relating to product development and performance targets over a less than two-year period. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event: In July 2021, PMI deposited $1.5 billion of existing cash to a designated account. The account is operated solely for the purpose of funding the anticipated transaction of Vectura Group plc (“Vectura”), a U.K. based company. On July 9, 2021, PMI announced that it agreed with the board of Vectura on the terms of an all-cash, recommended offer to acquire Vectura for an enterprise value of GBP 852 million (approximately $1.2 billion, at the then-prevailing exchange rate). PMI will fund the transaction with existing cash and expects it to close in the second half of 2021, subject to a shareholder vote and approval by the appropriate regulatory authorities. This restricted cash of $1.5 billion (including a reserve for foreign exchange volatility) will be included in other current assets in our consolidated balance sheets starting in July 2021 until the closing. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Derivatives | 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 exposures. 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"). |
Fair Value of Financial Instruments | 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. |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of share-based compensation arrangements by payment award | During the six months ended June 30, 2021 and 2020, shares granted to eligible employees and the weighted-average grant date fair value per share related to RSU awards were as follows: Number of Weighted-Average Grant Date Fair Value Per RSU Award Granted 2021 1,981,480 $ 81.91 2020 1,692,650 $ 85.91 Compensation expense related to RSU awards was as follows: Compensation Expense Related to RSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 $ 73 $ 33 2020 $ 68 $ 29 During the six months ended June 30, 2021 and 2020, shares granted to eligible employee and the grant date fair value per share related to PSU awards were as follows: Number of Shares Granted Grant Date Grant Date (Per Share) (Per Share) 2021 574,410 $ 81.86 $ 106.93 2020 671,220 $ 86.04 $ 80.36 Compensation expense related to PSU awards was as follows: Compensation Expense Related to PSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 $ 46 $ 34 2020 $ 32 $ 9 |
Schedule of assumptions used to determine the grant date fair value of the PSU awards subject to the TSR performance factor | The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor: 2021 2020 Risk-free interest rate (a) 0.2 % 1.4 % Expected volatility (b) 31.7 % 23.5 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Components of Pension and Other Employee Benefit Costs | Pension and other employee benefit costs per the condensed consolidated statements of earnings consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Net pension costs (income) $ (2) $ (8) $ (1) $ (4) Net postemployment costs 53 49 25 24 Net postretirement costs 4 4 3 2 Total pension and other employee benefit costs $ 55 $ 45 $ 27 $ 22 |
Components of Net Periodic Benefit Cost | Net periodic pension cost consisted of the following: Pension (1) For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Service cost $ 147 $ 130 $ 72 $ 65 Interest cost 25 35 12 18 Expected return on plan assets (186) (173) (91) (87) Amortization: Net loss 158 129 78 64 Prior service cost 1 1 — 1 Net periodic pension cost $ 145 $ 122 $ 71 $ 61 (1) Primarily non-U.S. based defined benefit retirement plans. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Balances, December 31, 2020 $ 1,434 $ 317 $ 86 $ 2,915 $ 559 $ 653 $ 5,964 Changes due to: Acquisitions 29 — — — — — 29 Currency (30) (8) 2 (86) (17) (12) (151) Balances, June 30, 2021 $ 1,433 $ 309 $ 88 $ 2,829 $ 542 $ 641 $ 5,842 |
Schedule of amortizable intangible assets | Details of other intangible assets were as follows: June 30, 2021 December 31, 2020 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,261 $ 1,261 $ 1,289 $ 1,289 Amortizable intangible assets: Trademarks 12 years 1,233 $ 621 612 1,233 $ 594 639 Distribution networks 7 years 113 79 34 115 78 37 Other* 8 years 105 54 51 104 50 54 Total other intangible assets $ 2,712 $ 754 $ 1,958 $ 2,741 $ 722 $ 2,019 |
Schedule of non-amortizable intangible assets | Details of other intangible assets were as follows: June 30, 2021 December 31, 2020 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,261 $ 1,261 $ 1,289 $ 1,289 Amortizable intangible assets: Trademarks 12 years 1,233 $ 621 612 1,233 $ 594 639 Distribution networks 7 years 113 79 34 115 78 37 Other* 8 years 105 54 51 104 50 54 Total other intangible assets $ 2,712 $ 754 $ 1,958 $ 2,741 $ 722 $ 2,019 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Contracts | The fair value of PMI’s derivative contracts included in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value At At At At (in millions) Balance Sheet Classification June 30, 2021 December 31, 2020 Balance Sheet Classification June 30, 2021 December 31, 2020 Derivative contracts designated as hedging instruments Other current assets $ 187 $ 130 Other accrued liabilities $ 92 $ 241 Other assets — 6 Income taxes and other liabilities 424 605 Derivative contracts not designated as hedging instruments Other current assets 104 46 Other accrued liabilities 28 207 Other assets — — Income taxes and other liabilities 38 57 Total gross amount derivatives contracts presented in the condensed consolidated balance sheets $ 291 $ 182 $ 582 $ 1,110 Gross amounts not offset in the condensed consolidated balance sheets Finance instruments (140) (156) (140) (156) Cash collateral received/pledged (126) (23) (425) (892) Net amount $ 25 $ 3 $ 17 $ 62 |
Cash Flow, Net Investment Hedges and Derivative Contracts Not Designated as Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings | For the six months ended June 30, 2021 and 2020, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Six Months Ended June 30, 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 2021 2020 2021 2020 2021 2020 Derivative contracts designated as hedging instruments: Cash flow hedges $ 89 $ (7) Net revenues $ 17 $ 4 Cost of sales — 7 Marketing, administration and research costs (12) 11 Interest expense, net (7) (5) Net investment hedges (a) 192 269 Interest expense, net (b) $ 82 $ 104 Derivative contracts not designated as hedging instruments: Interest expense, net 25 48 Marketing, administration and research costs (c) 196 (63) Total $ 281 $ 262 $ (2) $ 17 $ 303 $ 89 (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 For the three months ended June 30, 2021 and 2020, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Three Months Ended June 30, 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 2021 2020 2021 2020 2021 2020 Derivative contracts designated as hedging instruments: Cash flow hedges $ (1) $ (38) Net revenues $ 17 $ 1 Cost of sales — 3 Marketing, administration and research costs 6 6 Interest expense, net (4) (3) Net investment hedges (a) (126) (138) Interest expense, net (b) $ 40 $ 48 Derivative contracts not designated as hedging instruments: Interest expense, net 14 14 Marketing, administration and research costs (c) (91) (92) Total $ (127) $ (176) $ 19 $ 7 $ (37) $ (30) (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: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Gain/(loss) as beginning of period $ (85) $ 3 $ 12 $ 20 Derivative (gains)/losses transferred to earnings 2 (15) (19) (6) Change in fair value 77 (6) 1 (32) Gain/(loss) as of June 30, $ (6) $ (18) $ (6) $ (18) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Basic and diluted earnings per share (“EPS”) were calculated using the following: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Net earnings attributable to PMI $ 4,590 $ 3,773 $ 2,172 $ 1,947 Less distributed and undistributed earnings attributable to share-based payment awards 14 10 6 5 Net earnings for basic and diluted EPS $ 4,576 $ 3,763 $ 2,166 $ 1,942 Weighted-average shares for basic EPS 1,558 1,557 1,558 1,558 Plus contingently issuable performance stock units (PSUs) 2 — 2 — Weighted-average shares for diluted EPS 1,560 1,557 1,560 1,558 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Data | Segment data were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Net revenues: European Union $ 6,058 $ 5,010 $ 3,149 $ 2,475 Eastern Europe 1,691 1,571 895 783 Middle East & Africa 1,361 1,580 560 704 South & Southeast Asia 2,219 2,140 1,046 889 East Asia & Australia 2,986 2,687 1,514 1,432 Latin America & Canada 864 816 430 368 Net revenues $ 15,179 $ 13,804 $ 7,594 $ 6,651 Operating income: European Union $ 3,131 $ 2,336 $ 1,641 $ 1,178 Eastern Europe 575 365 314 266 Middle East & Africa 351 558 16 237 South & Southeast Asia 860 888 331 289 East Asia & Australia 1,410 1,155 715 669 Latin America & Canada 246 218 112 92 Operating income $ 6,573 $ 5,520 $ 3,129 $ 2,731 PMI's net revenues by product category were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Net revenues: Combustible products: European Union $ 4,113 $ 3,855 $ 2,162 $ 1,945 Eastern Europe 1,047 1,045 555 522 Middle East & Africa 1,307 1,528 527 696 South & Southeast Asia 2,216 2,140 1,045 889 East Asia & Australia 1,259 1,272 611 630 Latin America & Canada 840 803 418 363 Total combustible products $ 10,781 $ 10,643 $ 5,318 $ 5,045 Reduced-risk products: European Union $ 1,945 $ 1,155 $ 987 $ 530 Eastern Europe 644 526 340 261 Middle East & Africa 54 52 33 8 South & Southeast Asia 3 — 1 — East Asia & Australia 1,727 1,415 903 802 Latin America & Canada 24 13 12 5 Total reduced-risk products $ 4,398 $ 3,161 $ 2,276 $ 1,606 Total PMI net revenues $ 15,179 $ 13,804 $ 7,594 $ 6,651 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 July 23, 2021, July 24, 2020 and July 23, 2019:¹ Type of Case Number of Cases Pending as of July 23, 2021 Number of Cases Pending as of July 24, 2020 Number of Cases Pending as of July 23, 2019 Individual Smoking and Health Cases 44 44 52 Smoking and Health Class Actions 9 10 10 Health Care Cost Recovery Actions 17 17 17 Label-Related Class Actions — — 1 Individual Label-Related Cases 4 5 6 Public Civil Actions 2 2 2 |
Schedule of Verdicts and Significant Post Trial Developments Where a Verdict was Returned In Favor of the Plaintiff(s) | The table below lists the verdict and significant post-trial developments in the four 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 $12.3 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 $2.5 billion)). The trial court awarded CAD 90,000 (approximately $71,600) in punitive damages, allocating CAD 30,000 (approximately $23,900) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $796 million) of the compensatory damage award, CAD 200 million (approximately $159 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 $104 million) in punitive damages, allocating CAD 46 million (approximately $37 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 $1,141), 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. On April 19, 2021, the Supreme Court of the Province of Buenos Aires rejected plaintiff's extraordinary appeal. On May 17, 2021 plaintiff filed a federal extraordinary appeal to the Federal Supreme Court. On June 16, 2021 our subsidiary filed its reply to the federal extraordinary appeal. |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | At June 30, 2021 and December 31, 2020, PMI’s long-term debt consisted of the following: (in millions) June 30, 2021 December 31, 2020 U.S. dollar notes, 0.875% to 6.375% (average interest rate 3.232%), due through 2044 $ 20,134 $ 21,221 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.995%), due through 2039 8,082 9,253 Swiss franc notes, 1.625% to 2.000% (average interest rate 1.830%), due through 2024 597 622 Other (average interest rate 3.724%), due through 2025 (a) 209 196 Carrying value of long-term debt 29,022 31,292 Less current portion of long-term debt 1,608 3,124 $ 27,414 $ 28,168 |
Aggregate Fair Values of PMI's Debt, excluding Finance Leases | At June 30, 2021, the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: (in millions) June 30, 2021 Level 1 $ 31,789 Level 2 167 |
Schedule of Committed Credit Facilities | At June 30, 2021, PMI's total committed credit facilities were as follows: (in billions) Type Committed 364-day revolving credit, expiring February 1, 2022 $ 1.75 Multi-year revolving credit, expiring October 1, 2022 3.50 Multi-year revolving credit, expiring February 10, 2025 (a) 2.00 Total facilities $ 7.25 (a) On January 29, 2021, PMI 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 . Effective July 2, 2021, the total facility amount for this additional year is $1.95 billion. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Earnings (Losses), Net of Taxes | PMI’s accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At At At (in millions) June 30, 2021 December 31, 2020 June 30, 2020 Currency translation adjustments $ (6,586) $ (6,843) $ (6,311) Pension and other benefits (4,073) (4,253) (3,680) Derivatives accounted for as hedges (6) (85) (18) Total accumulated other comprehensive losses $ (10,665) $ (11,181) $ (10,009) |
Related Parties - Equity Inve_2
Related Parties - Equity Investments and Other (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Earnings and Balance Sheet Activities with Related Parties - Equity Investments and Other | PMI’s net revenues and expenses with the above related parties were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Net revenues: Megapolis Group $ 1,038 $ 1,026 $ 555 $ 530 Other 560 523 280 242 Net revenues (a) $ 1,598 $ 1,549 $ 835 $ 772 Expenses: Other $ 33 $ 27 $ 16 $ 8 Expenses $ 33 $ 27 $ 16 $ 8 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: (in millions) At June 30, 2021 At December 31, 2020 Receivables: Megapolis Group $ 521 $ 209 Other 282 156 Receivables $ 803 $ 365 Payables: Other $ 14 $ 13 Payables $ 14 $ 13 |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Accrued Product Warranties | At June 30, 2021 and December 31, 2020, these amounts were as follows: (in millions) At June 30, 2021 At December 31, 2020 Balance at beginning of period $ 137 $ 140 Changes due to: Warranties issued 80 242 Settlements (99) (254) Currency/Other — 9 Balance at end of period $ 118 $ 137 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease cost components | The components of PMI’s lease cost were as follows for the six months and three months ended June 30, 2021 and 2020: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2021 2020 2021 2020 Operating lease cost $ 126 $ 117 $ 66 $ 57 Short-term lease cost 25 25 15 12 Variable lease cost 14 15 7 7 Total lease cost $ 165 $ 157 $ 88 $ 76 |
Asset Impairment and Exit Cos_2
Asset Impairment and Exit Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Pre-Tax Asset Impairment and Exit Costs by Segment | PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2021 2020 2021 2020 Separation programs: (1) European Union $ 44 $ 24 $ 35 $ 24 Eastern Europe 9 6 7 6 Middle East & Africa 10 8 8 8 South & Southeast Asia 13 10 10 10 East Asia & Australia 20 12 15 12 Latin America & Canada 5 4 4 4 Total separation programs 101 64 79 64 Contract termination charges: East Asia & Australia 26 — — — Total contract termination charges 26 — — — Asset impairment charges: (1) European Union — 3 — 3 Eastern Europe — 1 — 1 Middle East & Africa — 1 — 1 South & Southeast Asia — 1 — 1 East Asia & Australia — 1 — 1 Latin America & Canada — — — — Total asset impairment charges — 7 — 7 Asset impairment and exit costs $ 127 $ 71 $ 79 $ 71 (1) Organizational design optimization pre-tax charges in 2021 and 2020 were allocated across all operating segments. |
Movement in Exit Cost Liabilities | The movement in exit cost liabilities for the six months ended June 30, 2021 was as follows: (in millions) Liability balance, January 1, 2021 $ 180 Charges, net 127 Cash spent (153) Currency/other (6) Liability balance, June 30, 2021 $ 148 |
Stock Plans (Additional Informa
Stock Plans (Additional Information) (Details) - shares | Jun. 30, 2021 | May 31, 2017 |
2017 Performance Incentive Plan | ||
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) | 14,867,021 | |
Non Employee Directors Plan | ||
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) | 914,413 | |
Percentage of voting shares that PMI may own, used in determining non-employee director status | 50.00% |
Stock Plans (RSU Awards) (Detai
Stock Plans (RSU Awards) (Details) - Restricted Stock Units (RSUs) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)year$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Granted (in shares) | shares | 1,981,480 | 1,692,650 | ||
Weighted-Average Grant Date Fair Value Per RSU Award Granted (in dollars per share) | $ / shares | $ 81.91 | $ 85.91 | ||
Compensation Expense Related to Awards | $ 33 | $ 29 | $ 73 | $ 68 |
Unrecognized compensation cost related to non-vested stock awards | $ 211 | $ 211 | ||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Stock awards vested during period (in shares) | shares | 1,106,129 | |||
Grant Date Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 108 | |||
Total Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 96 |
Stock Plans (PSU Awards) (Detai
Stock Plans (PSU Awards) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)performanceMetricyear$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Length of performance cycle period | 3 years | |||
Absolute basis | 40.00% | 40.00% | ||
Currency-neutral compound annual adjusted diluted earnings per share growth rate | 30.00% | 30.00% | ||
Performance against specific measures of transformation | 30.00% | 30.00% | ||
Performance metrics predefined at time of grant | performanceMetric | 3 | |||
Aggregate weighted performance factor | 100.00% | |||
Number of shares of common stock issued for each vested PSU (in shares) | shares | 1 | |||
Number of Shares Granted (in shares) | shares | 574,410 | 671,220 | ||
Risk-free interest rate (as a percent) | 0.20% | 1.40% | ||
Expected volatility (as a percent) | 31.70% | 23.50% | ||
Compensation Expense Related to Awards | $ 34 | $ 9 | $ 46 | $ 32 |
Unrecognized compensation cost related to non-vested stock awards | $ 71 | $ 71 | ||
Minimum retirement age | year | 58 | |||
Stock awards vested during period (in shares) | shares | 189,839 | |||
Performance Shares | Grant Date Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 21 | |||
Performance Shares | Total Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 16 | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 0.00% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 200.00% | |||
Performance Share Units, Other Performance Factors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-Average Grant Date Fair Value Per RSU Award Granted (in dollars per share) | $ / shares | $ 81.86 | $ 86.04 | ||
Performance Share Units, TSR Relative To Customer Peer Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-Average Grant Date Fair Value Per RSU Award Granted (in dollars per share) | $ / shares | $ 106.93 | $ 80.36 |
Benefit Plans (Components of Pe
Benefit Plans (Components of Pension and Other Employee Benefits Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | $ 27 | $ 22 | $ 55 | $ 45 |
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | (1) | (4) | (2) | (8) |
Postemployment Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | 25 | 24 | 53 | 49 |
Postretirement Benefit Costs | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | $ 3 | $ 2 | $ 4 | $ 4 |
Benefit Plans (Components of Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 72 | $ 65 | $ 147 | $ 130 |
Interest cost | 12 | 18 | 25 | 35 |
Expected return on plan assets | (91) | (87) | (186) | (173) |
Amortization: | ||||
Net loss | 78 | 64 | 158 | 129 |
Prior service cost | 0 | 1 | 1 | 1 |
Net periodic pension cost | $ 71 | $ 61 | $ 145 | $ 122 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Retirement Benefits [Abstract] | |
Employer contributions | $ 197 |
Anticipated additional employer contributions during the remainder of the current fiscal year | $ 78 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net (Movement in Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 5,964 |
Changes due to: | |
Acquisitions | 29 |
Currency | (151) |
Ending Balance | 5,842 |
European Union | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,434 |
Changes due to: | |
Acquisitions | 29 |
Currency | (30) |
Ending Balance | 1,433 |
Eastern Europe | |
Goodwill [Roll Forward] | |
Beginning Balance | 317 |
Changes due to: | |
Acquisitions | 0 |
Currency | (8) |
Ending Balance | 309 |
Middle East & Africa | |
Goodwill [Roll Forward] | |
Beginning Balance | 86 |
Changes due to: | |
Acquisitions | 0 |
Currency | 2 |
Ending Balance | 88 |
South & Southeast Asia | |
Goodwill [Roll Forward] | |
Beginning Balance | 2,915 |
Changes due to: | |
Acquisitions | 0 |
Currency | (86) |
Ending Balance | 2,829 |
East Asia & Australia | |
Goodwill [Roll Forward] | |
Beginning Balance | 559 |
Changes due to: | |
Acquisitions | 0 |
Currency | (17) |
Ending Balance | 542 |
Latin America & Canada | |
Goodwill [Roll Forward] | |
Beginning Balance | 653 |
Changes due to: | |
Acquisitions | 0 |
Currency | (12) |
Ending Balance | $ 641 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 1,261 | $ 1,289 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Accumulated Amortization | 754 | 722 |
Total other intangible assets, gross | 2,712 | 2,741 |
Total other intangible assets, net | $ 1,958 | 2,019 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 12 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 1,233 | 1,233 |
Amortizable intangible assets, Accumulated Amortization | 621 | 594 |
Amortizable intangible assets, Net | $ 612 | 639 |
Distribution networks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 7 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 113 | 115 |
Amortizable intangible assets, Accumulated Amortization | 79 | 78 |
Amortizable intangible assets, Net | $ 34 | 37 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 8 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 105 | 104 |
Amortizable intangible assets, Accumulated Amortization | 54 | 50 |
Amortizable intangible assets, Net | $ 51 | $ 54 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net (Additional Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Non-amortizable intangible assets, currency movements increase (decrease) | $ (28,000,000) | |||
Finite lived intangible asset, currency movements increase (decrease) | (8,000,000) | |||
Amortization of intangibles | $ 19,000,000 | $ 19,000,000 | 37,000,000 | $ 37,000,000 |
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | 75,000,000 | 75,000,000 | ||
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 75,000,000 | 75,000,000 | ||
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 75,000,000 | 75,000,000 | ||
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 75,000,000 | 75,000,000 | ||
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | 75,000,000 | 75,000,000 | ||
Goodwill and intangible asset impairment | $ 0 | |||
Trademarks and Distribution Networks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 37,000,000 | |||
Change in accumulated amortization, currency movements | 5,000,000 | |||
Trademarks | AG Snus | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Preliminary purchase price allocation of trademarks | $ 7,000,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Investment Hedging | Foreign Debt | ||||
Derivative [Line Items] | ||||
Foreign currency gain (loss) | $ (71) | $ (98) | $ 110 | $ (103) |
Derivative Contract | ||||
Derivative [Line Items] | ||||
Notional amount | 22,700 | 22,700 | ||
Derivative instruments, gains (losses) to be reclassified to earnings | 26 | $ 26 | ||
Derivative Contract | Maximum | ||||
Derivative [Line Items] | ||||
Maximum length of time hedged in a cash flow hedge | 12 months | |||
Derivative Contract | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional amount | 11,600 | $ 11,600 | ||
Derivative Contract | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | 3,500 | 3,500 | ||
Derivative Contract | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | $ 7,600 | $ 7,600 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Derivative Contracts) (Details) - Derivative Contract - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | $ 291 | $ 182 |
Gross amounts not offset in the condensed consolidated balance sheets - financial instruments | (140) | (156) |
Gross amounts not offset in the condensed consolidated balance sheets - cash collateral received / pledged | (126) | (23) |
Net amount | 25 | 3 |
Derivative liability fair value | 582 | 1,110 |
Gross amounts not offset in the condensed consolidated balance sheets - financial instruments | (140) | (156) |
Gross amounts not offset in the condensed consolidated balance sheets - cash collateral received / pledged | (425) | (892) |
Net amount | 17 | 62 |
Designated as Hedging Instrument [Member] | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 187 | 130 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 0 | 6 |
Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 92 | 241 |
Designated as Hedging Instrument [Member] | Income Taxes and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 424 | 605 |
Not Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 104 | 46 |
Not Designated as Hedging Instrument | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Not Designated as Hedging Instrument | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 28 | 207 |
Not Designated as Hedging Instrument | Income Taxes and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | $ 38 | $ 57 |
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) - Derivative Contract - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivative contracts designated as hedging instruments | $ (1) | $ (38) | $ 89 | $ (7) |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives in Net Investment Hedging Relationship | (126) | (138) | 192 | 269 |
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | (127) | (176) | 281 | 262 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 19 | 7 | (2) | 17 |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | (37) | (30) | 303 | 89 |
Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 17 | 1 | 17 | 4 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 3 | 0 | 7 |
Marketing, administration and research costs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 6 | 6 | (12) | 11 |
Marketing, administration and research costs | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | (91) | (92) | 196 | (63) |
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (4) | (3) | (7) | (5) |
Amount of Gain/(Loss) Recognized in Earnings, Investment Hedging | 40 | 48 | 82 | 104 |
Interest expense, net | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | $ 14 | $ 14 | $ 25 | $ 48 |
Financial Instruments (Qualifyi
Financial Instruments (Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses) Net of Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (9,574) | $ (11,063) | $ (10,631) | $ (9,599) |
Ending balance | (9,200) | (10,120) | (9,200) | (10,120) |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 12 | 20 | (85) | 3 |
Derivative (gains)/losses transferred to earnings | (19) | (6) | 2 | (15) |
Change in fair value | 1 | (32) | 77 | (6) |
Ending balance | $ (6) | $ (18) | $ (6) | $ (18) |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to PMI | $ 2,172 | $ 1,947 | $ 4,590 | $ 3,773 |
Less distributed and undistributed earnings attributable to share-based payment awards | 6 | 5 | 14 | 10 |
Net earnings for basic EPS | 2,166 | 1,942 | 4,576 | 3,763 |
Net earnings for diluted EPS | $ 2,166 | $ 1,942 | $ 4,576 | $ 3,763 |
Weighted-average shares for basic EPS (in shares) | 1,558,000,000 | 1,558,000,000 | 1,558,000,000 | 1,557,000,000 |
Plus contingently issuable performance stock units (PSUs) (in shares) | 2,000,000 | 0 | 2,000,000 | 0 |
Weighted-average shares for diluted EPS (in shares) | 1,560,000,000 | 1,558,000,000 | 1,560,000,000 | 1,557,000,000 |
Antidilutive stock awards (in shares) | 0 | 0 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 6 | |||
Number of operating segments | segment | 6 | |||
Total PMI net revenues | $ 7,594 | $ 6,651 | $ 15,179 | $ 13,804 |
Operating income | 3,129 | 2,731 | 6,573 | 5,520 |
European Union | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 3,149 | 2,475 | 6,058 | 5,010 |
Operating income | 1,641 | 1,178 | 3,131 | 2,336 |
Eastern Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 895 | 783 | 1,691 | 1,571 |
Operating income | 314 | 266 | 575 | 365 |
Middle East & Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 560 | 704 | 1,361 | 1,580 |
Operating income | 16 | 237 | 351 | 558 |
South & Southeast Asia | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 1,046 | 889 | 2,219 | 2,140 |
Operating income | 331 | 289 | 860 | 888 |
East Asia & Australia | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 1,514 | 1,432 | 2,986 | 2,687 |
Operating income | 715 | 669 | 1,410 | 1,155 |
Latin America & Canada | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 430 | 368 | 864 | 816 |
Operating income | 112 | 92 | 246 | 218 |
Combustible Products | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 5,318 | 5,045 | 10,781 | 10,643 |
Combustible Products | European Union | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 2,162 | 1,945 | 4,113 | 3,855 |
Combustible Products | Eastern Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 555 | 522 | 1,047 | 1,045 |
Combustible Products | Middle East & Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 527 | 696 | 1,307 | 1,528 |
Combustible Products | South & Southeast Asia | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 1,045 | 889 | 2,216 | 2,140 |
Combustible Products | East Asia & Australia | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 611 | 630 | 1,259 | 1,272 |
Combustible Products | Latin America & Canada | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 418 | 363 | 840 | 803 |
Reduced-Risk Products | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 2,276 | 1,606 | 4,398 | 3,161 |
Reduced-Risk Products | European Union | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 987 | 530 | 1,945 | 1,155 |
Reduced-Risk Products | Eastern Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 340 | 261 | 644 | 526 |
Reduced-Risk Products | Middle East & Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 33 | 8 | 54 | 52 |
Reduced-Risk Products | South & Southeast Asia | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 1 | 0 | 3 | 0 |
Reduced-Risk Products | East Asia & Australia | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 903 | 802 | 1,727 | 1,415 |
Reduced-Risk Products | Latin America & Canada | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | 12 | $ 5 | 24 | $ 13 |
SAUDI ARABIA | Middle East & Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total PMI net revenues | $ (246) | $ (246) |
Contingencies (Tobacco-Related
Contingencies (Tobacco-Related Litigation) (Details) | Mar. 01, 2019CAD ($) | Mar. 01, 2019USD ($) | May 27, 2015CAD ($)plaintiffmanufacturer | May 27, 2015USD ($)plaintiffmanufacturer | Jun. 20, 2012cigarette | Jul. 10, 2009cigarette | Oct. 30, 2015CAD ($) | Oct. 30, 2015USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2021litigationCase |
Loss Contingencies [Line Items] | ||||||||||
Number of cases decided in favor of PM | 515 | |||||||||
Number of cases decided in favor of plaintiff | 14 | |||||||||
Cases Remaining On Appeal | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases on appeal | 4 | |||||||||
Case Decided In Favor Of Plaintiff | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases that reached final resolution in favor of PM | 10 | |||||||||
Canada | Adams | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Minimum number of cigarettes smoked | cigarette | 25,000 | |||||||||
Canada | Suzanne Jacklin | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Minimum number of cigarettes smoked | cigarette | 25,000 | |||||||||
Canada | Smoking And Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | ||||||||||
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 | Smoking And Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 15,500,000,000 | $ 12,300,000,000 | ||||||||
Punitive damages awarded | 90,000 | 71,600 | ||||||||
Damages, reduced amount | $ 13,500,000,000 | $ 10,700,000,000 | ||||||||
Canada | Smoking And Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 2,700,000,000 | $ 2,100,000,000 | $ 3,100,000,000 | $ 2,500,000,000 | ||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | 20.00% | 20.00% | ||||||
Punitive damages awarded | $ 30,000 | $ 23,900 | ||||||||
Canada | Smoking And Health Class Actions | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount to be deposited into trust | $ 1,100,000,000 | $ 875,000,000 | ||||||||
Payment period | 60 days | 60 days | ||||||||
Canada | Smoking And Health Class Actions | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Motion for security ordered by appeals court, paid by defendant | $ 226,000,000 | $ 180,000,000 | ||||||||
Amount of security ordered, funded by defendant | $ 257,000,000 | $ 194,000,000 | ||||||||
Amount of litigation charge | $ | $ 194,000,000 | |||||||||
Amount of litigation charge net of tax | $ | $ 142,000,000 | |||||||||
Canada | Smoking And Health Class Actions | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | Imperial Tobacco Ltd. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Motion for security ordered by appeals court | $ 758,000,000 | $ 603,000,000 | ||||||||
Canada | Smoking And Health Class Actions | Cecilia Letourneau | ||||||||||
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 | Smoking And Health Class Actions | Cecilia Letourneau | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 131,000,000 | $ 104,000,000 | ||||||||
Canada | Smoking And Health Class Actions | Cecilia Letourneau | Judicial Ruling | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 46,000,000 | $ 37,000,000 | ||||||||
Punitive damages, value | $ 57,000,000 | $ 45,000,000 |
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 - litigationCase | Jul. 23, 2021 | Jul. 24, 2020 | Jul. 23, 2019 |
Individual Smoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 44 | 52 | |
Smoking And Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 10 | 10 | |
Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 17 | 17 | |
Label Related Class Action | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 0 | 1 | |
Individual Label Related Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 5 | 6 | |
Public Civil Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Subsequent Event | Individual Smoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 44 | ||
Subsequent Event | Smoking And Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 9 | ||
Subsequent Event | Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 17 | ||
Subsequent Event | Label Related Class Action | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 0 | ||
Subsequent Event | Individual Label Related Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 4 | ||
Subsequent Event | Public Civil Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 |
Contingencies (Verdicts and Pos
Contingencies (Verdicts and Post-Trial Developments) (Details) - Judicial Ruling | Jul. 02, 2021USD ($) | Jul. 02, 2021ARS ($) | Jun. 17, 2021USD ($) | Jun. 17, 2021ARS ($) | Mar. 01, 2019CAD ($) | Mar. 01, 2019USD ($) | Aug. 05, 2016USD ($) | Aug. 05, 2016ARS ($) | May 27, 2015CAD ($) | May 27, 2015USD ($) |
Canada | Smoking And Health Class Actions | Cecilia Letourneau | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 131,000,000 | $ 104,000,000 | ||||||||
Canada | Smoking And Health Class Actions | Cecilia Letourneau | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 46,000,000 | $ 37,000,000 | ||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||||||
Canada | Smoking And Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 15,500,000,000 | $ 12,300,000,000 | ||||||||
Punitive damages awarded | 90,000 | 71,600 | ||||||||
Awarded compensatory damages that are to be deposited into trust | 1,000,000,000 | 796,000,000 | ||||||||
Canada | Smoking And Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 2,700,000,000 | $ 2,100,000,000 | $ 3,100,000,000 | $ 2,500,000,000 | ||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | 20.00% | 20.00% | ||||||
Punitive damages awarded | $ 30,000 | $ 23,900 | ||||||||
Awarded compensatory damages that are to be deposited into trust | $ 200,000,000 | $ 159,000,000 | ||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | ||||||||
Argentina | Individual Action | Hugo Lespada | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 1,141 | $ 110,000 | ||||||||
Argentina | Individual Action | Claudia Milano | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 1,556 | $ 150,000 | ||||||||
Punitive damages awarded | $ 41,500 | $ 4,000,000 | ||||||||
Argentina | Individual Action | Claudia Milano | Subsequent Event | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount to be deposited into trust | $ 63,438 | $ 6,114,428 |
Contingencies (Smoking and Heal
Contingencies (Smoking and Health Litigation) (Details) - Combustible Products - litigationCase | Jul. 23, 2021 | Jul. 24, 2020 | Jul. 23, 2019 |
Individual Smoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 44 | 52 | |
Smoking And Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 10 | 10 | |
Subsequent Event | Individual Smoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 44 | ||
Subsequent Event | Individual Smoking And Health Cases | Argentina | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 31 | ||
Subsequent Event | Individual Smoking And Health Cases | Brazil | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 | ||
Subsequent Event | Individual Smoking And Health Cases | Canada | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Subsequent Event | Individual Smoking And Health Cases | Chile | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Subsequent Event | Individual Smoking And Health Cases | China | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Individual Smoking And Health Cases | Italy | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Individual Smoking And Health Cases | Philippines | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Individual Smoking And Health Cases | Turkey | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Individual Smoking And Health Cases | Scotland | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Individual Smoking And Health Cases | United States | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Smoking And Health Class Actions | |||
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 | Apr. 14, 2014patient | Oct. 17, 2008 | Mar. 13, 2008 | Feb. 26, 2008 | May 25, 2007 | May 09, 2007 | Jul. 23, 2021litigationCase | Jul. 24, 2020litigationCase | Jul. 23, 2019litigationCase |
Korea | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, number of patients | patient | 3,484 | ||||||||
Nigeria | Pending Litigation | The Attorney General Of Lagos State | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria | Pending Litigation | The Attorney General Of Kano State | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria | Pending Litigation | The Attorney General Of Gombe State | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria | Pending Litigation | The Attorney General Of Oyo State | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria | Pending Litigation | The Attorney General Of Ogun State | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Combustible Products | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 17 | 17 | |||||||
Subsequent Event | Combustible Products | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 17 | ||||||||
Subsequent Event | Combustible Products | Brazil | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 1 | ||||||||
Subsequent Event | Combustible Products | Canada | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 10 | ||||||||
Subsequent Event | Combustible Products | Korea | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 1 | ||||||||
Subsequent Event | Combustible Products | Nigeria | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 5 |
Contingencies (Label-Related Ca
Contingencies (Label-Related Cases) (Details) - Individual Label Related Cases - Combustible Products - litigationCase | Jul. 23, 2021 | Jul. 24, 2020 | Jul. 23, 2019 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 5 | 6 | |
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 4 | ||
Subsequent Event | Italy | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Chile | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 |
Contingencies (Public Civil Act
Contingencies (Public Civil Actions) (Details) - Public Civil Actions - Combustible Products - litigationCase | Jul. 23, 2021 | Jul. 24, 2020 | Jul. 23, 2019 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Subsequent Event | Argentina | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event | Venezuela | |||
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 ($) | Jan. 26, 2017THB (฿) | Jan. 18, 2016USD ($)defendant | Jan. 18, 2016THB (฿)defendant | 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 ($) | Sep. 30, 2019RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021SAR (ر.س) |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Tax benefit | $ (646) | $ (528) | $ (1,343) | $ (1,124) | ||||||||||||||||||||||
Thailand | Other Litigation | The Department of Special Investigations of the Government of Thailand | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Loss contingency, damages sought, value | $ 602 | ฿ 19,800 | ||||||||||||||||||||||||
Amount of fine imposed by trial court | $ 4 | ฿ 130 | $ 36 | ฿ 1,200 | ||||||||||||||||||||||
Korea | Other Litigation | The South Korean Board Of Audit And Inspection | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Amounts paid | $ 87 | ₩ 100 | $ 149 | ₩ 172 | $ 236 | ₩ 272 | ||||||||||||||||||||
Amount of taxes not underpaid as ruled by trial court | $ 189 | ₩ 218 | ||||||||||||||||||||||||
Amount of alleged underpayments not underpaid as ruled by court | $ 46 | ₩ 54 | ||||||||||||||||||||||||
Eastern Europe | Other Litigation | The Moscow Tax Inspectorate for Major Taxpayers Audit | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
SAUDI ARABIA | Other Litigation | Saudi Arabia Customs General Authority Case | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Additional customs duties ordered to be paid | $ 396 | $ 396 | ر.س 1.5 | |||||||||||||||||||||||
Pending Litigation | Thailand | Other Litigation | The Department of Special Investigations of the Government of Thailand | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of defendants | defendant | 8 | 8 | ||||||||||||||||||||||||
Loss contingency, damages sought, value | $ 2,500 | ฿ 80,800 |
Contingencies (Third-Party Guar
Contingencies (Third-Party Guarantees) (Details) $ in Millions, $ in Millions | Jul. 31, 2021 | Jun. 30, 2021 | Oct. 17, 2020CAD ($) | Oct. 17, 2020USD ($) |
Philip Morris Investment B.V. | Medicago Inc. | ||||
Loss Contingencies [Line Items] | ||||
Ownership percentage | 32.00% | |||
Canadian Government | Financial Guarantee | ||||
Loss Contingencies [Line Items] | ||||
Value of financial guarantee | $ 173 | $ 131 | ||
Subsequent Event | Philip Morris Investment B.V. | Medicago Inc. | ||||
Loss Contingencies [Line Items] | ||||
Ownership percentage | 25.00% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||||
Effective tax rate | 22.00% | 20.70% | 21.70% | 21.70% | |
Forecast | |||||
Income Taxes [Line Items] | |||||
Effective tax rate | 22.00% |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | Jan. 29, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | |||
Short-term borrowings, carrying value | $ 136,000,000 | $ 244,000,000 | |
Committed credit facilities | 7,250,000,000 | ||
Borrowings under committed credit facilities | 0 | ||
364-day revolving credit, expiring February 1, 2022 | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, term | 364 days | ||
Committed credit facilities | $ 1,750,000,000 | $ 1,750,000,000 |
Indebtedness (Long-Term Debt) (
Indebtedness (Long-Term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Long-term debt, including current maturities | $ 29,022 | $ 31,292 |
Less current portion of long-term debt | 1,608 | 3,124 |
Long-term debt | 27,414 | 28,168 |
Finance lease, liability | $ 56 | 37 |
U.S. Dollar Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.232% | |
Long-term debt, including current maturities | $ 20,134 | 21,221 |
U.S. Dollar Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.875% | |
U.S. Dollar Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 6.375% | |
Euro Notes | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.995% | |
Long-term debt, including current maturities | $ 8,082 | 9,253 |
Euro Notes | Foreign Currency Obligations | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.125% | |
Euro Notes | Foreign Currency Obligations | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.125% | |
Swiss Franc Notes | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.83% | |
Long-term debt, including current maturities | $ 597 | 622 |
Swiss Franc Notes | Foreign Currency Obligations | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.625% | |
Swiss Franc Notes | Foreign Currency Obligations | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.00% | |
Other | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.724% | |
Long-term debt, including current maturities | $ 209 | $ 196 |
Indebtedness (Fair Value) (Deta
Indebtedness (Fair Value) (Details) $ in Millions | Jun. 30, 2021USD ($) |
Level 1 | |
Debt Instrument [Line Items] | |
Debt Instrument, Fair Value Disclosure | $ 31,789 |
Level 2 | |
Debt Instrument [Line Items] | |
Debt Instrument, Fair Value Disclosure | $ 167 |
Indebtedness (Credit Facilities
Indebtedness (Credit Facilities) (Details) - USD ($) | Jul. 02, 2021 | Jun. 30, 2021 | Jan. 29, 2021 |
Line of Credit Facility [Line Items] | |||
Committed credit facilities | $ 7,250,000,000 | ||
364-day revolving credit, expiring February 1, 2022 | |||
Line of Credit Facility [Line Items] | |||
Committed credit facilities | 1,750,000,000 | $ 1,750,000,000 | |
Multi-year revolving credit, expiring October 1, 2022 | |||
Line of Credit Facility [Line Items] | |||
Committed credit facilities | 3,500,000,000 | ||
Multi-year Revolving Credit Facility, Expiring February 10, 2025 | |||
Line of Credit Facility [Line Items] | |||
Committed credit facilities | $ 2,000,000,000 | 2,000,000,000 | |
Multi-year Revolving Credit Facility, Expiring February 10, 2026 | |||
Line of Credit Facility [Line Items] | |||
Committed credit facilities | $ 1,860,000,000 | ||
Multi-year Revolving Credit Facility, Expiring February 10, 2026 | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Committed credit facilities | $ 1,950,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Earnings (Losses), Net of Tax) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | $ (9,200) | $ (9,574) | $ (10,631) | $ (10,120) | $ (11,063) | $ (9,599) |
Accumulated Other Comprehensive Losses | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | (10,665) | $ (10,746) | (11,181) | (10,009) | $ (10,774) | $ (9,363) |
Currency translation adjustments | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | (6,586) | (6,843) | (6,311) | |||
Pension and other benefits | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | (4,073) | (4,253) | (3,680) | |||
Derivatives accounted for as hedges | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | $ (6) | $ (85) | $ (18) |
Related Parties - Equity Inve_3
Related Parties - Equity Investments and Other (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 22, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 907 | $ 966 | |
Difference between equity method investment carrying value and book value | 773 | 773 | |
Dividends from unconsolidated subsidiaries | 73 | 79 | |
Level 1 | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity securities, noncurrent | $ 242 | ||
IPM India | |||
Schedule of Equity Method Investments [Line Items] | |||
Parent ownership percentage | 56.30% | ||
EITA | STAEM | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 51.00% | ||
Management Et Developpement Des Actifs Et Des Ressources Holding (MADAR Holding) | STAEM | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% | ||
TTI | PMM | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling ownership percentage | 33.00% | ||
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between equity method investment carrying value and book value, amortization period | 10 years | ||
Maximum | |||
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 | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated subsidiaries and equity securities | $ 742 | $ 745 | |
Megapolis Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 23.00% | ||
EITA | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% | ||
STAEM | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25.00% | ||
RBH | |||
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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Net revenues | $ 835 | $ 772 | $ 1,598 | $ 1,549 | |
Expenses | 16 | 8 | 33 | 27 | |
Receivables | 803 | 803 | $ 365 | ||
Payables | 14 | 14 | 13 | ||
Megapolis Group | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net revenues | 555 | 530 | 1,038 | 1,026 | |
Receivables | 521 | 521 | 209 | ||
Other | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net revenues | 280 | 242 | 560 | 523 | |
Expenses | 16 | $ 8 | 33 | $ 27 | |
Receivables | 282 | 282 | 156 | ||
Payables | $ 14 | $ 14 | $ 13 |
Sale of Accounts Receivable (De
Sale of Accounts Receivable (Details) - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Sale of Accounts Receivable [Abstract] | ||
Servicing liability | $ 0 | $ 0 |
Trade receivables sold and derecognized from the Consolidated Balance Sheets | 5.5 | 5.5 |
Trade receivables sold and derecognized that remain uncollected | 0.7 | 0.6 |
Loss on sale of trade receivables | $ 0 | $ 0 |
Product Warranty (Narrative) (D
Product Warranty (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Standard product warranty term | 12 months |
Product Warranty (Movement in P
Product Warranty (Movement in Product Warranty Obligations) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 137 | $ 140 |
Changes due to: | ||
Warranties issued | 80 | 242 |
Settlements | (99) | (254) |
Currency/Other | 0 | 9 |
Balance at end of period | $ 118 | $ 137 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 66 | $ 57 | $ 126 | $ 117 |
Short-term lease cost | 15 | 12 | 25 | 25 |
Variable lease cost | 7 | 7 | 14 | 15 |
Total lease cost | $ 88 | $ 76 | $ 165 | $ 157 |
Asset Impairment and Exit Cos_3
Asset Impairment and Exit Costs (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)employee | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($)employee | Jun. 30, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | $ 79 | $ 71 | $ 127 | $ 71 | ||
Future cash payments for exit costs expected to be paid | 153 | |||||
Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 0 | 0 | 26 | 0 | ||
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 79 | 64 | 101 | 64 | ||
Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 0 | 7 | 0 | 7 | ||
Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Future cash payments for exit costs expected to be paid | $ 65 | |||||
East Asia & Australia | Contract Termination | Operating Segments | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 0 | 0 | 26 | 0 | ||
East Asia & Australia | Employee Severance | Operating Segments | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 15 | 12 | 20 | 12 | ||
East Asia & Australia | Asset Impairment | Operating Segments | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 0 | $ 1 | $ 0 | $ 1 | ||
Philip Morris Korea | East Asia & Australia | Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | $ 0 | $ 26 | ||||
Switzerland Restructuring, Final Phases | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | employee | 130 | |||||
Organizational Design Optimization | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated, inception to date | employee | 950 | 950 | ||||
Cost incurred to date | $ 250 | $ 250 | ||||
Organizational Design Optimization | Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost incurred to date | 242 | 242 | ||||
Organizational Design Optimization | Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost incurred to date | $ 8 | $ 8 |
Asset Impairment and Exit Cos_4
Asset Impairment and Exit Costs (Asset Impairment and Exit Costs by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | $ 79 | $ 71 | $ 127 | $ 71 |
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 79 | 64 | 101 | 64 |
Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 0 | 26 | 0 |
Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 7 | 0 | 7 |
European Union | Operating Segments | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 35 | 24 | 44 | 24 |
European Union | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 3 | 0 | 3 |
Eastern Europe | Operating Segments | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 7 | 6 | 9 | 6 |
Eastern Europe | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 1 | 0 | 1 |
Middle East & Africa | Operating Segments | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 8 | 8 | 10 | 8 |
Middle East & Africa | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 1 | 0 | 1 |
South & Southeast Asia | Operating Segments | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 10 | 10 | 13 | 10 |
South & Southeast Asia | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 1 | 0 | 1 |
East Asia & Australia | Operating Segments | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 15 | 12 | 20 | 12 |
East Asia & Australia | Operating Segments | Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 0 | 26 | 0 |
East Asia & Australia | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 0 | 1 | 0 | 1 |
Latin America & Canada | Operating Segments | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | 4 | 4 | 5 | 4 |
Latin America & Canada | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred cost | $ 0 | $ 0 | $ 0 | $ 0 |
Asset Impairment and Exit Cos_5
Asset Impairment and Exit Costs (Movement in Exit Cost Liabilities) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Movement in exit cost liabilities | |
Liability balance, January 1, 2021 | $ 180 |
Charges, net | 127 |
Cash spent | (153) |
Currency/other | (6) |
Liability balance, June 30, 2021 | $ 148 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||
Cash payment for business, net of cash acquired | $ 27 | $ 0 | |
AG Snus | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100.00% | ||
Cash payment for business, net of cash acquired | $ 27 | ||
Additional contingent payments | $ 10 | ||
Contingent payment target period | 2 years |
Subsequent Event (Details)
Subsequent Event (Details) £ in Millions, $ in Millions | Jul. 09, 2021USD ($) | Jul. 09, 2021GBP (£) | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | |||||||
Restricted cash | $ 5 | $ 5 | $ 7 | $ 4 | |||
Subsequent Event | Vectura Group plc | |||||||
Subsequent Event [Line Items] | |||||||
Expected consideration | $ 1,200 | £ 852 | |||||
Subsequent Event | Vectura Group plc | Other Current Assets | |||||||
Subsequent Event [Line Items] | |||||||
Restricted cash | $ 1,500 |