Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33708 | ||
Entity Registrant Name | PHILIP MORRIS INTERNATIONAL INC. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 13-3435103 | ||
Entity Address, Address Line One | 120 Park Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10017 | ||
City Area Code | 917 | ||
Local Phone Number | 663-2000 | ||
Title of 12(g) Security | None | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 154 | ||
Entity Common Stock, Shares Outstanding | 1,549,827,817 | ||
Documents Incorporated by Reference | Document Parts Into Which Incorporated Portions of the registrant’s definitive proxy statement for use in connection with its annual meeting of shareholders to be held on May 4, 2022, to be filed with the Securities and Exchange Commission on or about March 24, 2022. Part III | ||
Entity Central Index Key | 0001413329 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, no par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | PM | ||
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 - 1 | |||
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 - 2 | |||
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 - 1 | |||
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 - 2 | |||
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 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers SA |
Auditor Location | Lausanne, Switzerland |
Auditor Firm ID | 1358 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues including excise taxes | $ 82,223 | $ 76,047 | $ 77,921 |
Excise taxes on products | 50,818 | 47,353 | 48,116 |
Net revenues | 31,405 | 28,694 | 29,805 |
Cost of sales | 10,030 | 9,569 | 10,513 |
Gross profit | 21,375 | 19,125 | 19,292 |
Marketing, administration and research costs (Notes 6, 12, 17, 19 & 20) | 8,304 | 7,384 | 8,695 |
Amortization of intangibles | 96 | 73 | 66 |
Operating income | 12,975 | 11,668 | 10,531 |
Interest expense, net (Note 14) | 628 | 618 | 570 |
Pension and other employee benefit costs (Note 13) | 115 | 97 | 89 |
Earnings before income taxes | 12,232 | 10,953 | 9,872 |
Provision for income taxes (Note 11) | 2,671 | 2,377 | 2,293 |
Equity investments and securities (income)/loss, net | (149) | (16) | (149) |
Net earnings | 9,710 | 8,592 | 7,728 |
Net earnings attributable to noncontrolling interests | 601 | 536 | 543 |
Net earnings attributable to PMI | $ 9,109 | $ 8,056 | $ 7,185 |
Per share data (Note 10): | |||
Basic earnings per share (in dollars per share) | $ 5.83 | $ 5.16 | $ 4.61 |
Diluted earnings per share (in dollars per share) | $ 5.83 | $ 5.16 | $ 4.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net earnings | $ 9,710 | $ 8,592 | $ 7,728 |
Change in currency translation adjustments: | |||
Unrealized gains (losses), net of income taxes | 58 | (1,265) | 505 |
Change in net loss and prior service cost: | |||
Net gains (losses) and prior service costs, net of income taxes | 1,055 | (726) | (454) |
Amortization of net losses, prior service costs and net transition costs, and (Gains) losses transferred to earnings - deconsolidation of RBH, net of income taxes | 323 | 299 | 243 |
Change in fair value of derivatives accounted for as hedges: | |||
Gains (losses) recognized, net of income taxes | 124 | (68) | (18) |
(Gains) losses transferred to earnings, net of income taxes | (35) | (20) | (14) |
Total other comprehensive earnings (losses) | 1,525 | (1,780) | 791 |
Total comprehensive earnings | 11,235 | 6,812 | 8,519 |
Less comprehensive earnings attributable to: | |||
Noncontrolling interests | 522 | 574 | 586 |
Comprehensive earnings attributable to PMI | 10,713 | 6,238 | 7,933 |
Deconsolidation of RBH | |||
Change in currency translation adjustments: | |||
(Gains)/losses transferred to earnings, net of income taxes | 0 | 0 | 502 |
Change in net loss and prior service cost: | |||
Amortization of net losses, prior service costs and net transition costs, and (Gains) losses transferred to earnings - deconsolidation of RBH, net of income taxes | $ 0 | $ 0 | $ 27 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes on currency translation adjustments in earnings | $ (58) | $ 94 | $ (161) |
Income taxes on net losses and prior service costs | (210) | 139 | 247 |
Income taxes on (gains)losses transferred to earnings relating to change in net loss and prior service cost | (72) | (67) | (69) |
Income taxes on gain/(loss) recognized from fair value of derivatives accounted for as hedges | (20) | 13 | 2 |
Income taxes on loss/(gain) transferred to earnings from fair value of derivatives accounted for as hedges | 7 | 0 | 3 |
Deconsolidation of RBH | |||
Income taxes on currency translation adjustments in earnings | 0 | 0 | 0 |
Income taxes on (gains)losses transferred to earnings relating to change in net loss and prior service cost | $ 0 | $ 0 | $ (15) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 4,496 | $ 7,280 |
Trade receivables (less allowances of $70 in 2021 and $23 in 2020) | 3,123 | 2,905 |
Other receivables (less allowances of $36 in 2021 and $38 in 2020) | 817 | 856 |
Inventories: | ||
Leaf tobacco | 1,642 | 2,063 |
Other raw materials | 1,652 | 1,712 |
Finished product | 5,426 | 5,816 |
Total inventory, net | 8,720 | 9,591 |
Other current assets | 561 | 860 |
Total current assets | 17,717 | 21,492 |
Property, plant and equipment, at cost: | ||
Land and land improvements | 565 | 590 |
Buildings and building equipment | 4,293 | 4,410 |
Machinery and equipment | 9,275 | 9,460 |
Construction in progress | 599 | 449 |
Property plant and equipment, gross | 14,732 | 14,909 |
Less: accumulated depreciation | 8,564 | 8,544 |
Property plant and equipment, net | 6,168 | 6,365 |
Goodwill (Note 3) | 6,680 | 5,964 |
Other intangible assets, net (Note 3) | 2,818 | 2,019 |
Equity investments (Note 4) | 4,463 | 4,798 |
Deferred income taxes | 895 | 1,410 |
Other assets (less allowances of $21 in 2021 and $22 in 2020) | 2,549 | 2,767 |
Total Assets | 41,290 | 44,815 |
Liabilities | ||
Short-term borrowings (Note 7) | 225 | 244 |
Current portion of long-term debt (Note 7) | 2,798 | 3,124 |
Accounts payable | 3,331 | 2,780 |
Accrued liabilities: | ||
Marketing and selling | 811 | 782 |
Taxes, except income taxes | 6,324 | 6,403 |
Employment costs | 1,146 | 1,189 |
Dividends payable | 1,958 | 1,880 |
Other | 1,637 | 2,122 |
Income taxes (Note 11) | 1,025 | 1,091 |
Total current liabilities | 19,255 | 19,615 |
Long-term debt (Note 7) | 24,783 | 28,168 |
Deferred income taxes | 726 | 684 |
Employment costs | 2,968 | 4,470 |
Income taxes and other liabilities (Note 11) | 1,766 | 2,509 |
Total liabilities | 49,498 | 55,446 |
Contingencies (Note 17) | ||
Stockholders’ (Deficit) Equity | ||
Common stock, no par value (2,109,316,331 shares issued in 2021 and 2020) | 0 | 0 |
Additional paid-in capital | 2,225 | 2,105 |
Earnings reinvested in the business | 33,082 | 31,638 |
Accumulated other comprehensive losses | (9,577) | (11,181) |
Total stockholders' equity before treasury stock | 25,730 | 22,562 |
Less: cost of repurchased stock (559,146,338 and 551,942,600 shares in 2021 and 2020, respectively) | 35,836 | 35,129 |
Total PMI stockholders’ deficit | (10,106) | (12,567) |
Noncontrolling interests | 1,898 | 1,936 |
Total stockholders’ deficit | (8,208) | (10,631) |
Total Liabilities and Stockholders’ (Deficit) Equity | $ 41,290 | $ 44,815 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 70 | $ 23 |
Other receivables, allowances | 36 | 38 |
Other assets, noncurrent, allowances for long-term receivables | $ 21 | $ 22 |
Common stock, shares issued (in shares) | 2,109,316,331 | 2,109,316,331 |
Repurchased stock, shares (in shares) | 559,146,338 | 551,942,600 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||||
Net earnings | $ 9,710 | $ 8,592 | $ 7,728 | |
Adjustments to reconcile net earnings to operating cash flows: | ||||
Depreciation and amortization | 998 | 981 | 964 | |
Deferred income tax (benefit) provision | (17) | (143) | (141) | |
Asset impairment and exit costs, net of cash paid (Note 19) | (22) | (14) | 371 | |
Cash effects of changes, net of the effects from acquired companies: | ||||
Receivables, net | (198) | 26 | (331) | |
Inventories | 549 | (165) | (548) | |
Accounts payable | 653 | 406 | 451 | |
Accrued liabilities and other current assets | 623 | 121 | 1,108 | |
Income taxes | (260) | (260) | 75 | |
Pension plan contributions | (269) | (102) | (200) | |
Other | [1] | 200 | 370 | 613 |
Net cash provided by operating activities | 11,967 | 9,812 | 10,090 | |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||||
Capital expenditures | (748) | (602) | (852) | |
Acquisitions, net of acquired cash (Note 6) | (2,111) | 0 | 0 | |
Equity investments | (34) | (47) | (31) | |
Deconsolidation of RBH (Note 20) | [2] | 0 | 0 | (1,346) |
Net investment hedges | 466 | (551) | 386 | |
Other | 69 | 46 | 32 | |
Net cash used in investing activities | (2,358) | (1,154) | (1,811) | |
Short-term borrowing activity by original maturity: | ||||
Net issuances (repayments) - maturities of 90 days or less | 0 | (70) | (364) | |
Issuances - maturities longer than 90 days | 0 | 45 | 989 | |
Repayments - maturities longer than 90 days | 0 | (45) | (989) | |
Long-term debt proceeds | 0 | 3,713 | 3,819 | |
Long-term debt repaid | (3,042) | (3,999) | (3,998) | |
Repurchases of common stock | (775) | 0 | 0 | |
Dividends paid | (7,580) | (7,364) | (7,161) | |
Payments to noncontrolling interests and Other | (580) | (776) | (357) | |
Net cash used in financing activities | (11,977) | (8,496) | (8,061) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (417) | 258 | 27 | |
Cash, cash equivalents and restricted cash: | ||||
Increase (Decrease) | [3] | (2,785) | 420 | 245 |
Balance at beginning of year | [3] | 7,285 | 6,865 | 6,620 |
Balance at end of year | [3] | 4,500 | 7,285 | 6,865 |
Cash Paid: | ||||
Interest | 716 | 728 | 800 | |
Income taxes | $ 2,936 | $ 2,785 | $ 2,430 | |
[1] | Includes the Loss on Deconsolidation of RBH ($239 million) and the Canadian tobacco litigation-related charge ($194 million) that were included in marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2019. For further details on these charges, see Note 20. Deconsolidation of RBH . | |||
[2] | Includes deconsolidation of RBH cash and cash equivalents of $1,323 million and restricted cash of $23 million. | |||
[3] | The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $4 million, $5 million and $4 million as of December 31, 2021, 2020 and 2019, respectively, which were included in other current assets in the consolidated balance sheets. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash divested from deconsolidation | [1] | $ 0 | $ 0 | $ 1,346 |
Restricted cash | $ 4 | 5 | 4 | |
Marketing, administration and research costs | ||||
Deconsolidation amount | 239 | |||
Smoking and Health Class Actions | RBH | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Canada | Appellate Ruling | ||||
Amount of litigation charge | $ 194 | |||
Cash | ||||
Cash divested from deconsolidation | 1,323 | |||
Restricted Cash [Member] | ||||
Cash divested from deconsolidation | $ 23 | |||
[1] | Includes deconsolidation of RBH cash and cash equivalents of $1,323 million and restricted cash of $23 million. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested in the Business | Total accumulated other comprehensive losses | Cost of Repurchased Stock | Noncontrolling Interests |
Beginning balance at Dec. 31, 2018 | $ (10,739) | $ 0 | $ 1,939 | $ 31,014 | $ (10,111) | $ (35,301) | $ 1,720 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 7,728 | 7,185 | 543 | ||||
Other comprehensive earnings (losses), net of income taxes | 262 | 219 | 43 | ||||
Other comprehensive earnings (losses), net of income taxes | 791 | ||||||
Issuance of stock awards | 160 | 79 | 81 | ||||
Dividends declared | (7,212) | (7,212) | |||||
Payments to noncontrolling interests | (378) | (378) | |||||
Deconsolidation of RBH (Note 20) | 529 | 529 | |||||
Other | 51 | 1 | 50 | ||||
Ending balance at Dec. 31, 2019 | (9,599) | 0 | 2,019 | 30,987 | (9,363) | (35,220) | 1,978 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 8,592 | 8,056 | 536 | ||||
Other comprehensive earnings (losses), net of income taxes | (1,780) | (1,818) | 38 | ||||
Issuance of stock awards | 160 | 69 | 91 | ||||
Dividends declared | (7,405) | (7,405) | |||||
Payments to noncontrolling interests | (602) | (602) | |||||
Other | 3 | 17 | (14) | ||||
Ending balance at Dec. 31, 2020 | (10,631) | 0 | 2,105 | 31,638 | (11,181) | (35,129) | 1,936 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 9,710 | 9,109 | 601 | ||||
Other comprehensive earnings (losses), net of income taxes | 1,525 | 1,604 | (79) | ||||
Issuance of stock awards | 197 | 119 | 78 | ||||
Dividends declared | (7,665) | (7,665) | |||||
Payments to noncontrolling interests | (560) | (560) | |||||
Common stock repurchased | (785) | (785) | |||||
Other | 1 | 1 | |||||
Ending balance at Dec. 31, 2021 | $ (8,208) | $ 0 | $ 2,225 | $ 33,082 | $ (9,577) | $ (35,836) | $ 1,898 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 4.90 | $ 4.74 | $ 4.62 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 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 primarily engaged in the manufacture and sale of cigarettes and reduced-risk products including heat-not-burn, vapor and oral nicotine products, in markets outside of the United States of America. In addition, during 2021, 2020 and 2019, PMI shipped 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. For further developments related to the sale of these products in the U.S., see Note 17. Contingencies . 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and expenses during the reporting periods. Significant estimates and assumptions include, among other things: pension and benefit plan assumptions; useful lives and valuation assumptions of goodwill and other intangible assets; valuation assumptions for non-marketable equity securities; marketing programs, and income taxes. Actual results could differ from those estimates. The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. Investments without readily determinable fair values, non-marketable equity securities, are measured and recorded using a measurement alternative that values the security at cost minus any impairment. All intercompany transactions and balances have been eliminated. In the third quarter of 2021, the former Latin America & Canada segment was renamed as the Americas segment. Additionally, due to the acquisitions of Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. in the third quarter of 2021, PMI added an Other category. For further details, see Note 6. Acquisitions and Note 12. Segment Reporting . As of March 22, 2019, PMI deconsolidated the financial results of its Canadian subsidiary, Rothmans, Benson & Hedges Inc. ("RBH") from PMI's financial statements. For further details, see Note 20. Deconsolidation of RBH . 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Depreciation Property, plant and equipment are stated at historical cost and depreciated primarily using the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated primarily over periods ranging from 3 to 15 years, and buildings and building improvements primarily over periods up to 40 years. Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. Fair value measurements PMI follows ASC 820, Fair Value Measurements and Disclosures with respect to assets and liabilities that are measured at fair value. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of input that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Foreign currency translation PMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. Goodwill and non-amortizable intangible assets valuation PMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. Impairment of long-lived assets PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Impairment of investment in non-marketable equity securities Non-marketable equity securities are subject to periodic impairment reviews during which PMI considers both qualitative and quantitative factors that may have a significant impact on the investees' fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. For further details see Note 20. Deconsolidation of RBH . Impairment of equity method investments Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. PMI determines whether a loss is other than temporary by considering the length of time and extent to which the fair value of the equity investment has been less than the carrying amount, the financial condition of the equity investment, and the intent to retain the investment for a period of time is sufficient to allow for any anticipated recovery in market value. Income taxes Income taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. PMI recognizes income taxes associated with Global Intangible Low-Taxed Income ("GILTI") taxes as current period expense rather than including these amounts in the measurement of deferred taxes. Inventories Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. Leases PMI determines that a contract contains a lease if the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Operating lease expense is recognized on a straight-line basis over the lease ter m. Finance lease expense is amortized based on production activity or the lease term. Lease expense is recorded in cost of sales or marketing, administration and research costs depending on the nature of the leased item. At lease commencement, PMI recognizes lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominately all of its leases. The recognition of the right-of-use asset and lease liability includes renewal options when it is reasonably certain that they will be exercised. Certain of PMI’s leases include payments that are based on changes to an index or on actual usage. These lease payments are adjusted periodically and are included within variable lease costs. PMI accounts for lease and nonlease components as a single-lease component with the exception of its vehicle leases, of which PMI accounts for the lease components separately from the nonlease components. Additionally, leases with an initial term of 12 months or less are not included in the right-of-use asset or lease liability on the consolidated statement of financial position. Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and reduced-risk products, including heat-not-burn, vapor and oral nicotine products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. In certain instances, PMI facilitates shipping and handling activities after control has transferred to the customer. PMI has elected to record all shipping and handling activities as costs to fulfill a contract. The shipping and handling costs that have not been incurred at the time revenue is recognized are accrued. The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration, where applicable. Such variable consideration is typically not constrained and is estimated based on the most likely amount that PMI expects to be entitled to under the terms of the contracts with customers, historical experience of discount or rebate redemption, where relevant, and the terms of any underlying discount or rebate programs, which may change from time to time as the business and product categories evolve. PMI has elected to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Estimated costs associated with warranty programs are generally provided for in cost of sales in the period the related revenues are recognized. Research and Development and Acquired In-Process Research and Development ("IPR&D") Research and development costs are expensed as incurred. In a business combination, the fair value of IPR&D acquired is initially capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the projects. Upon completion, a determination as to the useful life is performed and the intangible asset is accounted for as a definite-lived intangible asset. Both the indefinite and definite-lived intangible assets are subject to impairment testing annually or more frequently if indicators exist. In an asset acquisition, the initial cost to acquire the IPR&D is expensed in the consolidated statements of earnings when the project has no alternative future use. PMI records these costs within marketing, administration and research costs in its consolidated statements of earnings. Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 9. Stock Plans . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 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 Americas Other Total Balances at January 1, 2020 $ 1,338 $ 300 $ 89 $ 2,898 $ 551 $ 682 $ — $ 5,858 Changes due to: Currency 96 17 (3) 17 8 (29) — 106 Balances, December 31, 2020 1,434 317 86 2,915 559 653 — 5,964 Changes due to: Acquisitions 30 — — — — — 968 998 Currency (91) (22) (7) (87) (20) (42) (13) (282) Balances, December 31, 2021 $ 1,373 $ 295 $ 79 $ 2,828 $ 539 $ 611 $ 955 $ 6,680 The increase in goodwill in 2021 was due primarily to the preliminary purchase price allocation of PMI's business combinations. For further details on these business combinations, see Note 6. Acquisitions . At December 31, 2021, goodwill primarily reflects PMI’s business combinations in Colombia, Greece, Indonesia, Mexico, Pakistan, the Philippines and Serbia, as well as the preliminary purchase price allocation of Fertin Pharma A/S and Vectura Group plc., which were acquired in September 2021. Details of other intangible assets were as follows: December 31, 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 $ 1,312 $ 1,312 $ 1,289 $ 1,289 Amortizable intangible assets: Trademarks 12 years 1,201 $ 639 562 1,233 $ 594 639 Developed technology, including patents 12 years 859 63 796 93 41 52 Other (1) 12 years 238 90 148 126 87 39 Total other intangible assets $ 3,610 $ 792 $ 2,818 $ 2,741 $ 722 $ 2,019 (1) Primarily includes distribution networks and customer relationships. Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico. The increase since December 31, 2020, was due to the preliminary purchase price allocation associated with PMI's business combinations in 2021 (primarily in-process research and development ("IPR&D")) in the amount of $53 million, partially offset by currency movements of ($30 million). For further details, see Note 6. Acquisitions . The increase in the gross carrying amount of amortizable intangible assets from December 31, 2020, was due to the preliminary purchase price allocation associated with PMI's business combinations in 2021 (primarily developed technology and customer relationships) in the amount of $917 million, partially offset by currency movements of ($71 million). The change in the accumulated amortization from December 31, 2020 was mainly due to the 2021 amortization of $96 million, partially offset by currency movements of ($26 million). Amortization expense for each of the next five years (including PMI's 2021 acquisitions of Fertin Pharma A/S and Vectura Group plc.) is estimated to be $152 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. |
Related Parties - Equity Invest
Related Parties - Equity Investments and Other | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parties - Equity Investments and Other | Related Parties - Equity Investments and Other: Equity Method Investments: At December 31, 2021 and 2020, PMI had total equity method investments of $879 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 December 31, 2021 and 2020, exceeded our share of the investees' book value by $764 million and $773 million, respectively. The difference between the investment carrying value and the amount of underlying equity in net assets, excluding $728 million and $745 million attributable to goodwill as of December 31, 2021 and 2020, respectively, which consists primarily of definite-lived intangible assets is being amortized on a straight-line basis. At December 31, 2021 and 2020, PMI received year-to-date dividends from equity method investees of $176 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 manufactures and distributes under license some of PMI’s brands (Middle East & Africa segment). The initial investments in Megapolis Distribution BV and EITA were recorded at cost and are included in equity investments on the consolidated balance sheets. Equity securities: Following the deconsolidation of RBH on March 22, 2019, PMI recorded the continuing investment in RBH, PMI's wholly owned subsidiary in Canada, at fair value of $3,280 million at the date of deconsolidation, within equity investments. For further details, see Note 20. Deconsolidation of RBH . Transactions between PMI and RBH are considered to be related-party transactions from the date of deconsolidation and are included in the tables below. The fair value of PMI’s other equity securities, which have been classified within Level 1, was $283 million and $256 million for the years ending December 31, 2021 and 2020, respectively. Unrealized pre-tax gains (losses) of $19 million and $(76) million ($15 million and $(60) million net of tax) on these equity securities were recorded in the consolidated statements of earnings for the years ended December 31, 2021 and 2020, respectively. For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . Other related parties: United Arab Emirates-based Trans-Emirates Trading and Investments (FZC) ("TTI") holds a 33% non-controlling interest in Philip Morris Misr LLC ("PMM"), an entity incorporated in Egypt which is consolidated in PMI’s financial statements in the Middle East & Africa segment. PMM sells, under license, PMI brands in Egypt through an exclusive distribution agreement with a local entity that is also controlled by TTI. Godfrey Phillips India Ltd ("GPI") is one of the non-controlling interest holders in IPM India, which is a 56.3% owned PMI consolidated subsidiary in the South & Southeast Asia segment. GPI also acts as contract manufacturer and distributor for IPM India. Amounts in the tables below include transactions between these related parties. Financial activity with the above related parties: PMI’s net revenues and expenses with the above related parties were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Net revenues Megapolis Group $ 2,207 $ 2,174 $ 2,236 Other 1,123 1,059 1,015 Net revenues (a) $ 3,330 $ 3,233 $ 3,251 Expenses: Other $ 69 $ 51 $ 63 Expenses $ 69 $ 51 $ 63 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: At December 31, (in millions) 2021 2020 Receivables: Megapolis Group $ 319 $ 209 Other 199 156 Receivables $ 518 $ 365 Payables: Other $ 25 $ 13 Payables $ 25 $ 13 |
Product Warranty
Product Warranty | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and December 31, 2020, these amounts were as follows: At December 31, (in millions) 2021 2020 Balance at beginning of period $ 137 $ 140 Changes due to: Warranties issued 154 242 Settlements (177) (254) Currency/Other (1) 9 Balance at end of period $ 113 $ 137 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions: Business Combinations AG Snus - On May 6, 2021, PMI acquired 100% of AG Snus Aktieselskab ("AG Snus"), a company based in Denmark, 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 $28 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. The operating results of AG Snus are included in the European Union segment, and were not material. Fertin Pharma – On September 15, 2021, PMI acquired 100% of Fertin Pharma A/S (“Fertin Pharma”), a company based in Denmark. Fertin Pharma is a developer and manufacturer of pharmaceutical and well-being products based on oral and intra-oral delivery systems. The acquisition was funded with existing cash. The total consideration of $821 million (DKK 5.2 billion) included cash of $580 million and the payment of $241 million related to the settlement of Fertin Pharma’s indebtedness. The purchase price of $821 million was preliminarily allocated to cash ($24 million), current assets including receivables and inventories ($69 million), non-current assets including property, plant and equipment ($228 million), goodwill ($378 million), and other intangible assets ($245 million, which primarily consisted of customer relationships, developed technology, and in-process research and development ("IPR&D")), partially offset by current liabilities ($44 million, which primarily consisted of accrued liabilities and accounts payable) and non-current liabilities ($79 million, primarily deferred income tax). Goodwill is primarily attributable to future growth opportunities provided by acquired R&D capabilities and any intangibles that did not qualify for separate recognition. The amortizable intangible assets are being amortized over their estimated useful lives of 8 to 19 years. Subsequent to the acquisition date, PMI made certain measurement period adjustments to the preliminary purchase price allocation, which resulted in an increase to goodwill of $41 million. The increase was primarily due to a decrease in other intangible assets ($82 million), partially offset by a decrease in deferred income tax liabilities ($21 million), and an increase in property, plant and equipment ($19 million). The purchase price allocation is preliminary and continues to be subject to refinement. PMI is evaluating the deductibility of goodwill for income tax purposes. Fertin Pharma's results of operations from the acquisition date through December 31, 2021 were included in PMI's consolidated statements of earnings, and were not material. Vectura – During the third quarter and up to September 15, 2021, PMI acquired a controlling interest of 74.77% of the total issued shares in Vectura Group plc (“Vectura”), an inhaled therapeutics company based in the United Kingdom. The shares were acquired through a series of open market purchases and acceptances of the tender offer at a price of 165 pence per share. As a result of additional acceptances of the offer and the exercise of the right to acquire compulsorily the Vectura shares, in accordance with the applicable English law, PMI completed the acquisition of 100% of Vectura in the fourth quarter of 2021. The acquisition was funded with existing cash from a designated account operated solely for the purpose of funding this acquisition. The total purchase price of $1,384 million (GBP 1.0 billion) for 100% of the Vectura shares was preliminarily allocated to cash ($136 million), current assets including receivables and inventories ($89 million), non-current assets including property, plant and equipment ($67 million), goodwill ($590 million), and other intangible assets ($719 million, which primarily consisted of developed technology, and IPR&D), partially offset by current liabilities ($100 million, primarily accrued liabilities), and non-current liabilities ($117 million, primarily deferred income tax). Goodwill is primarily attributable to future growth opportunities provided by acquired R&D capabilities and any intangibles that did not qualify for separate recognition. The amortizable intangible assets are being amortized over their estimated useful lives of 3 to 15 years. Subsequent to the acquisition date, PMI made certain measurement period adjustments to the preliminary purchase price allocation, which resulted in a decrease to goodwill of $115 million. The decrease was primarily due to increase in other intangible assets ($73 million), and a decrease in deferred income tax liabilities ($22 million). The purchase price allocation is preliminary and continues to be subject to refinement. PMI is evaluating the deductibility of goodwill for income tax purposes. Vectura's results of operations from September 15, 2021 through December 31, 2021 were included in PMI's consolidated statements of earnings, and were not material. Pro forma results of operations for the above business combinations have not been presented as the aggregate impact is not material to PMI's consolidated statements of earnings. PMI elected to early adopt ASU No. 2021-08 “Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which did not have a material impact on PMI’s consolidated operating results, statement of financial position or cash flows. Asset Acquisition On August 9, 2021, PMI acquired 100% of OtiTopic, Inc., a U.S. respiratory drug development company with a late-stage dry powder inhalation aspirin treatment for acute myocardial infarction. The transaction price was $38 million in cash, plus transaction costs, with additional contingent payment of $13 million, primarily related to certain key milestones that PMI deemed probable. Additionally, PMI may owe up to $25 million in future additional contingent payments dependent upon the achievement of certain milestones. PMI accounted for this transaction as an asset acquisition since the IPR&D of the dry powder inhalation aspirin treatment represented substantially all of the fair value of the gross assets acquired. At the date of acquisition, PMI determined that the acquired IPR&D had no alternative future use. As a result, PMI recorded a charge of $51 million to research and development costs within marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2021. While PMI builds and organizes its future capabilities in wellness and healthcare, Fertin Pharma, Vectura and OtiTopic are considered separate operating segments with their operating results included in the Other category. For additional information see Note 12. Segment Reporting . |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness: Short-Term Borrowings At December 31, 2021 and 2020, PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2021 December 31, 2020 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ — — % $ — — % Bank loans 225 12.0 244 5.3 $ 225 $ 244 Given the mix of subsidiaries and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country. The fair values of PMI’s short-term borrowings at December 31, 2021 and 2020, based upon current market interest rates, approximate the amounts disclosed above. Long-Term Debt At December 31, 2021 and 2020, PMI’s long-term debt consisted of the following: December 31, (in millions) 2021 2020 U.S. dollar notes, 0.875% to 6.375% (average interest rate 3.245%), due through 2044 $ 19,397 $ 21,221 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.995%), due through 2039 7,687 9,253 Swiss franc notes, 1.625%, due 2024 273 622 Other (average interest rate 3.329%), due through 2029 (a) 224 196 Carrying value of long-term debt 27,581 31,292 Less current portion of long-term debt 2,798 3,124 $ 24,783 $ 28,168 (a) Includes mortgage debt in Switzerland as well as $71 million and $37 million in finance leases at December 31, 2021 and 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 December 31, 2021 and 2020 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: December 31, (in millions) 2021 2020 Level 1 $ 29,597 $ 35,227 Level 2 165 177 For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . Debt Issuances Outstanding: PMI’s debt issuances outstanding at December 31, 2021, were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $500 2.625% February 2017 February 2022 U.S. dollar notes $750 2.375% August 2017 August 2022 U.S. dollar notes $750 2.500% August 2012 August 2022 U.S. dollar notes $750 2.500% November 2017 November 2022 U.S. dollar notes $600 2.625% March 2013 March 2023 U.S. dollar notes $500 2.125% May 2016 May 2023 U.S. dollar notes $750 1.125% May 2020 May 2023 U.S. dollar notes $500 3.600% November 2013 November 2023 U.S. dollar notes $900 2.875% May 2019 May 2024 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $750 1.500% May 2020 May 2025 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $750 0.875% November 2020 May 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $500 3.125% November 2017 March 2028 U.S. dollar notes $750 3.375% May 2019 August 2029 U.S. dollar notes $750 2.100% May 2020 May 2030 U.S. dollar notes $750 1.750% November 2020 November 2030 U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (a) $500 4.250% May 2016 November 2044 EURO notes (b) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (b) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (b) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (b) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (b) €500 (approximately $557) 0.125% August 2019 August 2026 EURO notes (b) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (b) €750 (approximately $835) 0.800% August 2019 August 2031 EURO notes (b) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (b) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (b) €500 (approximately $582) 1.875% November 2017 November 2037 EURO notes (b) €750 (approximately $835) 1.450% August 2019 August 2039 Swiss franc notes (b) CHF250 (approximately $283) 1.625% May 2014 May 2024 (a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. The net proceeds from the sale of the securities listed in the table above were used for general corporate purposes, including working capital requirements and repurchase of PMI's common stock. On January 18, 2022, PMI redeemed all of its outstanding 2.625% U.S. dollar notes due February 18, 2022. As of December 31, 2021, $500 million aggregate principal amount of the U.S. dollar notes were outstanding. The pre-tax loss related to this debt extinguishment, which was not material, will be included in Interest expense, net on PMI’s condensed consolidated statements of earnings for the three months ended March 31, 2022. Aggregate maturities: Aggregate maturities of long-term debt are as follows: (in millions) 2022 $ 2,798 2023 2,371 2024 3,318 2025 2,351 2026 3,199 2027-2031 4,666 2032-2036 1,132 Thereafter 7,965 27,800 Debt discounts (219) Total long-term debt $ 27,581 Credit Facilities At December 31, 2021, PMI’s total committed credit facilities were as follows: Type Committed 364-day revolving credit, expiring February 1, 2022 $ 1.8 Multi-year revolving credit, expiring February 10, 2026 2.0 Multi-year revolving credit, expiring September 29, 2026 (1) 2.5 Total facilities $ 6.3 (1) Includes pricing adjustments that may result in the reduction or increase in both the interest rate and commitment fee under the credit agreement if PMI achieves, or fails to achieve, certain specified targets. At December 31, 2021, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. These facilities do not include any credit rating triggers, material adverse change clauses or any provisions that could require PMI to post collateral. On January 28, 2022, PMI entered into an agreement to amend and extend the term of its $1.8 billion 364-day revolving credit facility from February 1, 2022, to January 31, 2023. On January 28, 2022, PMI also entered into an agreement, effective February 10, 2022, 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, 2026 to February 10, 2027, in the amount of $1.9 billion. In addition to the committed credit facilities discussed above, certain subsidiaries maintain short-term credit arrangements to meet their respective working capital needs. These credit arrangements, which amounted to approximately $2.3 billion at December 31, |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock: Shares of authorized common stock are 6.0 billion; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2019 2,109,316,331 (554,736,610) 1,554,579,721 Issuance of stock awards 1,314,942 1,314,942 Balances, December 31, 2019 2,109,316,331 (553,421,668) 1,555,894,663 Issuance of stock awards 1,479,068 1,479,068 Balances, December 31, 2020 2,109,316,331 (551,942,600) 1,557,373,731 Repurchase of shares (8,514,629) (8,514,629) Issuance of stock awards 1,310,891 1,310,891 Balances, December 31, 2021 2,109,316,331 (559,146,338) 1,550,169,993 On June 11, 2021, PMI's Board of Directors authorized a new share repurchase program of up to $7 billion, with target spending of $5 billion to $7 billion over a three-year period. On July 22, 2021, PMI began repurchasing shares under this new share repurchase program. From July 22, 2021 through December 31, 2021, PMI repurchased 8.5 million shares of its common stock at a cost of $785 million. At December 31, 2021, 23,461,358 shares of common stock were reserved for stock awards under PMI’s stock plans, and 250 million shares of preferred stock, without par value, were authorized but unissued. PMI currently has no plans to issue any shares of preferred stock. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Stock Plans | Stock Plans: In May 2017, PMI’s shareholders approved the Philip Morris International Inc. 2017 Performance Incentive Plan (the “2017 Plan”). Under the 2017 Plan, PMI may grant to eligible employees restricted shares and restricted share units, performance-based cash incentive awards and performance-based equity awards. Up to 25 million shares of PMI’s common stock may be issued under the 2017 Plan. At December 31, 2021, shares available for grant under the 2017 Plan were 14,832,141. In May 2017, PMI’s shareholders also approved the Philip Morris International Inc. 2017 Stock Compensation Plan for Non-Employee Directors (the “2017 Non-Employee Directors Plan”). A non-employee director is defined as a member of the PMI Board of Directors who is not a full-time employee of PMI or of any corporation in which PMI owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation. Up to 1 million shares of PMI common stock may be awarded under the 2017 Non-Employee Directors Plan. At December 31, 2021, shares available for grant under the plan were 914,413. Restricted share unit (RSU) awards PMI may grant RSU awards to eligible employees; recipients may not sell, assign, pledge or otherwise encumber such awards. Such awards are subject to forfeiture if certain employment conditions are not met. RSU awards generally vest on the third anniversary of the grant date. RSU awards do not carry voting rights, although they do earn dividend equivalents. During 2021, the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2021 4,098,240 $ 86.21 Granted 2,020,860 82.17 Vested (1,256,441) 96.01 Forfeited (221,895) 82.97 Balance at December 31, 2021 4,640,764 $ 81.96 During the years ended December 31, 2021, 2020 and 2019, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2021 $ 166 $ 82.17 $ 139 2020 $ 148 $ 85.79 $ 129 2019 $ 133 $ 77.28 $ 118 The fair value of the RSU awards at the date of grant is amortized to expense over the restriction period, typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2021, PMI had $144 million of total unrecognized compensation costs related to non-vested RSU awards. These costs are expected to be recognized over a weighted-average period of approximately seventeen months, or upon death, disability or reaching the age of 58. During the years ended December 31, 2021, 2020 and 2019, share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2021 1,256,441 $ 121 $ 111 2020 1,206,871 $ 117 $ 102 2019 1,126,057 $ 101 $ 95 Performance share unit (PSU) awards PMI may grant PSU awards to certain executives; recipients may not sell, assign, pledge or otherwise encumber such awards. The PSU awards require the achievement of certain performance factors, which are predetermined at the time of grant, typically over a three-year performance cycle. The performance metrics for such PSU's granted during 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 performance metrics for such PSUs granted during 2019 consisted of PMI’s TSR relative to a predetermined peer group and on an absolute basis (50% weight), PMI’s currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions (30% weight), and PMI’s performance against specific measures of PMI’s transformation (20% weight). The aggregate of the weighted performance factors for the three metrics in each such PSU award determines the percentage of PSUs that will vest at the end of the three-year performance cycle. The minimum percentage of such PSUs that can vest is zero, with a target percentage of 100 and a maximum percentage of 200. Each such vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned. PSU awards do not carry voting rights. During 2021, the activity for PSU awards was as follows: Number of Grant Date Grant Date (Per Share) (Per Share) Balance at January 1, 2021 1,472,800 $ 86.76 $ 90.48 Granted 574,410 81.86 106.93 Vested (189,839) 100.69 118.98 Forfeited (320,351) 97.76 72.55 Balance at December 31, 2021 1,537,020 $ 82.14 $ 96.25 During the years ended December 31, 2021, 2020 and 2019, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) PSU Grant Date Fair Value Subject to Other Performance Factors PSU Grant Date Fair Value Subject to TSR Performance Factor Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2021 $ 28 $ 81.86 $ 25 $ 106.93 $ 71 2020 $ 28 $ 86.04 $ 28 $ 80.36 $ 38 2019 $ 30 $ 77.23 $ 21 $ 83.59 $ 54 The grant date fair value of the PSU awards subject to the other performance factors was determined by using the average of the high and low market price of PMI’s stock at the date of the grant. The grant date fair value of the PSU market-based awards subject to the TSR performance factor was determined by using the Monte Carlo simulation model. The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2021, 2020 and 2019: For the Years Ended December 31, 2021 2020 2019 Risk-free interest rate (a) 0.2 % 1.4 % 2.4 % Expected volatility (b) 31.7 % 23.5 % 21.4 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. The fair value of the PSU award at the date of grant is amortized to expense over the performance period, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2021, PMI had $48 million of total unrecognized compensation cost related to non-vested PSU awards. This cost is recognized over a weighted-average performance cycle period of approximately seventeen months, or upon death, disability or reaching the age of 58. During the years ended December 31, 2021, 2020 and 2019, share and fair value information for PMI PSU awards that vested were as follows: (dollars in millions) Shares of PSU Awards that Vested Grant Date Fair Value of Vested Shares of PSU Awards Total Fair Value of PSU Awards that Vested 2021 189,839 $ 21 $ 16 2020 343,806 $ 35 $ 30 2019 330,616 $ 32 $ 28 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share: Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method. Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2021 2020 2019 Net earnings attributable to PMI $ 9,109 $ 8,056 $ 7,185 Less distributed and undistributed earnings attributable to share-based payment awards 26 20 17 Net earnings for basic and diluted EPS $ 9,083 $ 8,036 $ 7,168 Weighted-average shares for basic EPS 1,558 1,557 1,555 Plus contingently issuable performance stock units (PSUs) 1 1 1 Weighted-average shares for diluted EPS 1,559 1,558 1,556 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2021, 2020 and 2019: (in millions) 2021 2020 2019 Earnings before income taxes $ 12,232 $ 10,953 $ 9,872 Provision for income taxes: United States federal and state: Current $ 73 $ (80) $ 17 Deferred 27 53 24 Total United States 100 (27) 41 Outside United States: Current 2,616 2,600 2,417 Deferred (45) (196) (165) Total outside United States 2,571 2,404 2,252 Total provision for income taxes $ 2,671 $ 2,377 $ 2,293 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 December 31, 2021, PMI has determined that the Act had no significant impact on PMI's effective tax rate. On July 20, 2020, the U.S. Department of the Treasury and the Internal Revenue Service released final and proposed regulations under the Global Intangible Low-Taxed Income (“GILTI”) and other provisions of the Internal Revenue Code. PMI has analyzed these elective regulations and recorded the impact in its consolidated financial statements, as described below. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act and, on December 27, 2020, the Consolidated Appropriations Act, 2021 (“U.S. COVID-19 Acts”) were signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. PMI has determined that neither the U.S. COVID-19 Acts nor changes to income tax laws or regulations in other jurisdictions had a significant impact on PMI’s effective tax rate, with the exception of the 2020 corporate income tax rate reduction in Indonesia. At December 31, 2017, PMI recorded a one-time transition tax liability on its accumulated foreign earnings, which is payable over an eight-year period beginning in 2018. At December 31, 2021 and December 31, 2020, $0.9 billion and $1.1 billion of PMI's remaining long-term portion of transition tax liability, respectively, was recorded in "income taxes and other liabilities" on PMI's consolidated balance sheets. At December 31, 2021 and 2020, U.S. federal and foreign deferred income taxes have been provided on all accumulated earnings of PMI's foreign subsidiaries. PMI is regularly examined by tax authorities around the world and is currently under examination in a number of jurisdictions. The U.S. federal statute of limitations remains open for the years 2017 and onward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three In October 2021, a subsidiary of PMI in Indonesia, PT Hanjaya Mandala Sampoerna Tbk ("HMS"), received a tax assessment in the amount of 3.8 trillion Indonesian rupiah (approximately $260 million) primarily relating to corporate income taxes on domestic and other intercompany transactions for the years 2017 to 2019. HMS paid the assessment in the fourth quarter of 2021 in order to avoid potential penalties and filed an objection letter with the tax office in January 2022. The amount paid was included in other assets in PMI’s consolidated balance sheets at December 31, 2021 and negatively impacted net cash provided by operating activities in the consolidated statements of cash flows in the period of payment. It is reasonably possible that within the next 12 months certain tax examinations will close, which could result in a change in unrecognized tax benefits, along with related interest and penalties. An estimate of any possible change cannot be made at this time. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2021 2020 2019 Balance at January 1, $ 72 $ 63 $ 56 Additions based on tax positions related to the current year 12 11 10 Additions for tax positions of previous years 15 1 1 Reductions for tax positions of prior years (1) (4) (2) Reductions due to lapse of statute of limitations (3) (1) (1) Settlements — — — Other (6) 2 (1) Balance at December 31, $ 89 $ 72 $ 63 Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2021 December 31, 2020 December 31, 2019 Unrecognized tax benefits $ 89 $ 72 $ 63 Accrued interest and penalties 18 17 16 Tax credits and other indirect benefits (7) (9) (12) Liability for tax contingencies $ 100 $ 80 $ 67 The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $82 million at December 31, 2021. The remainder, if recognized, would principally affect deferred taxes. For the years ended December 31, 2021, 2020 and 2019, PMI recognized income (expense) in its consolidated statements of earnings of $(3) million, $(1) million and $(4) million, respectively, related to interest and penalties associated with uncertain tax positions. The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: Foreign rate differences (0.3) 0.6 1.8 Dividend repatriation cost 0.6 0.4 (0.5) Global intangible low-taxed income 0.8 0.1 1.4 U.S. state taxes 0.2 0.2 0.7 Foreign derived intangible income (0.7) (0.6) (1.2) Other 0.2 — — Effective tax rate 21.8 % 21.7 % 23.2 % The 2021 effective tax rate increased 0.1 percentage point to 21.8%. The change in the effective tax rate for 2021, as compared to 2020, was unfavorably impacted by repatriation cost differences and foreign tax credit limitations related to GILTI, partially offset by the corporate income tax rate reduction in the Philippines (enacted in the first quarter of 2021) and changes in earnings mix by taxing jurisdiction. The 2020 effective tax rate decreased 1.5 percentage points to 21.7%. The change in the effective tax rate for 2020, as compared to 2019, was favorably impacted by changes in earnings mix by taxing jurisdiction, a reduction of U.S. state tax expense, a reduction of estimated U.S. income tax liabilities for years 2018 and 2019 due to the GILTI regulations mentioned above ($93 million) and the corporate income tax rate reduction in Indonesia, partially offset by a decrease in deductions related to foreign-derived intangible income for the years 2018 and 2019 and repatriation cost differences. The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2021 2020 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 234 $ 225 Accrued pension costs 392 720 Inventory (1) 177 232 Accrued liabilities 168 182 Net operating loss carryforwards and tax credits 408 351 Foreign exchange — 27 Other 112 124 Total deferred income tax assets 1,491 1,861 Less: valuation allowance (239) (250) Deferred income tax assets, net of valuation allowance 1,252 1,611 Deferred income tax liabilities: Trade names (591) (374) Property, plant and equipment (140) (200) Unremitted earnings (206) (311) Foreign exchange (146) — Total deferred income tax liabilities (1,083) (885) Net deferred income tax assets $ 169 $ 726 (1) Includes deferred tax charges of $153 million and $209 million in 2021 and 2020, respectively, related to intercompany transactions. At December 31, 2021, PMI recorded deferred tax assets for net operating loss carryforwards and tax credits of $408 million, with varying dates of expiration, primarily after 2026, including $183 million with an unlimited carryforward period. At December 31, 2021, PMI has recorded a valuation allowance of $239 million against deferred tax assets that do not meet the more-likely-than not recognition threshold. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting: PMI’s subsidiaries and affiliates are primarily engaged in the manufacture and sale of cigarettes and RRPs, including heat-not-burn, vapor and oral nicotine products, in markets outside of the United States of America. PMI's segments are generally organized by geographic region and managed by segment managers who are responsible for the operating and financial results of the regions inclusive of combustible and reduced-risk product categories sold in the region. PMI currently has six geographical segments: the European Union; Eastern Europe; Middle East & Africa; South & Southeast Asia; East Asia & Australia; and Americas; as well as an Other category. Other consists of the 2021 acquisitions of Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. For further details on these acquisitions, see Note 6. Acquisitions . PMI records net revenues and operating income to its geographical 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 Americas segment. PMI’s chief operating decision maker evaluates geographical segment performance and allocates resources based on regional operating income, which includes results from all product categories sold in each region. Business operations in the Other category are managed and evaluated separately. Interest expense, net, and provision for income taxes are centrally managed and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management. Information about total assets by segment is not disclosed because such information is not reported to or used by PMI’s chief operating decision maker. Segment goodwill and other intangible assets, net, are disclosed in Note 3. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies. PMI disaggregates its net revenue from contracts with customers by both geographic location and product category for each of PMI's six geographical segments. For the 2021 acquisitions discussed above, net revenues from contracts with customers are included in the Other category. PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net revenues by geographic segment and Other category were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Net revenues: European Union $ 12,275 $ 10,702 $ 9,817 Eastern Europe 3,544 3,378 3,282 Middle East & Africa 3,293 3,088 4,042 South & Southeast Asia 4,396 4,396 5,094 East Asia & Australia 5,953 5,429 5,364 Americas 1,843 1,701 2,206 Other 101 — — Net revenues $ 31,405 $ 28,694 $ 29,805 Total net revenues attributable to customers located in Japan, PMI's largest market in terms of net revenues, were $4.6 billion, $4.1 billion and $3.9 billion in 2021, 2020 and 2019, respectively. PMI had one customer in the East Asia & Australia segment that accounted for 15%, 14% and 13% of PMI’s consolidated net revenues, and one customer in the European Union segment that accounted for 13%, 11% and 10% of PMI’s consolidated net revenues in 2021, 2020 and 2019, respectively. PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Combustible products: European Union $ 8,211 $ 8,053 $ 8,093 Eastern Europe 2,240 2,250 2,438 Middle East & Africa 3,148 3,031 3,721 South & Southeast Asia 4,385 4,395 5,094 East Asia & Australia 2,414 2,468 2,693 Americas 1,790 1,670 2,179 Total combustible products $ 22,190 $ 21,867 $ 24,218 Reduced-risk products: European Union $ 4,064 $ 2,649 $ 1,724 Eastern Europe 1,304 1,128 844 Middle East & Africa 145 57 321 South & Southeast Asia 11 1 — East Asia & Australia 3,539 2,961 2,671 Americas 53 31 27 Total reduced-risk products $ 9,115 $ 6,827 $ 5,587 Other: Other $ 101 $ — $ — Total PMI net revenues $ 31,405 $ 28,694 $ 29,805 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's cigarettes and other tobacco products combined. Other tobacco products primarily include roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos and do not include reduced-risk products. Net revenues related to reduced-risk products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's heated tobacco units, heat-not-burn devices and related accessories, and other nicotine-containing products, which primarily include PMI's e-vapor and oral nicotine products. Net revenues in the Other category primarily consist of operating revenues generated from the sale of inhaled therapeutics, and oral and intra-oral delivery systems resulting from the third quarter 2021 acquisitions of Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. Operating income (loss) by geographic segment and Other category were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Operating income (loss): European Union $ 6,119 $ 5,098 $ 3,970 Eastern Europe 1,213 871 547 Middle East & Africa 1,146 1,026 1,684 South & Southeast Asia 1,506 1,709 2,163 East Asia & Australia 2,556 2,400 1,932 Americas 487 564 235 Other (52) — — Operating income $ 12,975 $ 11,668 $ 10,531 Items affecting the comparability of results from operations were as follows: • Asset impairment and exit costs - See Note 19. Asset Impairment and Exit Costs for details of the $216 million, $149 million and $422 million pre-tax charges for the year ended December 31, 2021, 2020 and 2019, respectively, as well as a breakdown of these costs by segment. • Saudi Arabia customs assessments - See Note 17. Contingencies for the details of the $246 million reduction in net revenues of combustible products included in the Middle East & Africa segment for the year ended December 31, 2021. • Asset acquisition cost - See Note 6. Acquisitions for the details of the $51 million pre-tax charge associated with the asset acquisition of OtiTopic, Inc. included in Other within the operating income table above for the year ended December 31, 2021. • Russia excise and VAT audit charge - See Note 17. Contingencies for details of the $374 million pre-tax charge included in the Eastern Europe segment for the year ended December 31, 2019. • Canadian tobacco litigation-related expense - See Note 17. Contingencies and Note 20. Deconsolidation of RBH for details of the $194 million pre-tax charge included in the Americas segment for the year ended December 31, 2019. • Loss on deconsolidation of RBH - See Note 20. Deconsolidation of RBH for details of the $239 million loss included in the Americas segment for the year ended December 31, 2019. • Brazil indirect tax credit - Following a final and enforceable decision by the highest court in Brazil in October 2020, PMI recorded a gain of $119 million for tax credits representing overpayments of indirect taxes for the period from March 2012 through December 2019; these tax credits were applied to tax liabilities in Brazil during 2021. This amount was included as a reduction in marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2020 and was included in the operating income of the Americas segment. An additional amount of overpaid indirect taxes of approximately $90 million is dependent on a potential tax authority challenge. Other segment data were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Depreciation expense: European Union $ 307 $ 266 $ 254 Eastern Europe 131 173 147 Middle East & Africa 89 75 90 South & Southeast Asia 143 137 142 East Asia & Australia 154 188 185 Americas 62 69 80 Other 16 — — Total depreciation expense $ 902 $ 908 $ 898 For the Years Ended December 31, (in millions) 2021 2020 2019 Capital expenditures: European Union $ 470 $ 384 $ 466 Eastern Europe 71 88 132 Middle East & Africa 37 22 35 South & Southeast Asia 52 57 100 East Asia & Australia 36 13 67 Americas 54 38 52 Other 28 — — Total capital expenditures $ 748 $ 602 $ 852 At December 31, (in millions) 2021 2020 2019 Long-lived assets: European Union $ 4,504 $ 4,500 $ 4,275 Eastern Europe 635 668 774 Middle East & Africa 289 375 369 South & Southeast Asia 1,386 1,348 1,361 East Asia & Australia 740 807 829 Americas 661 784 680 Other 292 — — Total long-lived assets 8,507 8,482 8,288 Financial instruments 210 650 314 Total property, plant and equipment, net and Other assets $ 8,717 $ 9,132 $ 8,602 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 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 consolidated statements of earnings consisted of the following for December 31, 2021, 2020 and 2019: (in millions) 2021 2020 2019 Net pension costs (income) $ (1) $ (14) $ (18) Net postemployment costs 108 103 100 Net postretirement costs 8 8 7 Total pension and other employee benefit costs $ 115 $ 97 $ 89 Pension and Postretirement Benefit Plans Obligations and Funded Status The postretirement health care plans are not funded. The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation and net amount accrued for PMI's postretirement health care plans, at December 31, 2021 and 2020, were as follows: Pension (1) Postretirement (in millions) 2021 2020 2021 2020 Benefit obligation at January 1 $ 12,243 $ 10,612 $ 198 $ 190 Service cost 291 268 2 2 Interest cost 50 68 5 6 Benefits paid (417) (356) (8) (7) Employee contributions 145 130 — — Settlement, curtailment and plan amendment (194) (117) Actuarial losses (gains) (559) 653 5 5 Currency (587) 992 (4) 3 Other 26 (7) — (1) Benefit obligation at December 31, 10,998 12,243 198 198 Fair value of plan assets at January 1, 8,746 7,928 Actual return on plan assets 1,054 206 Employer contributions 269 102 Employee contributions 145 130 Benefits paid (417) (356) Settlement (37) (16) Currency (444) 752 Other 21 — Fair value of plan assets at December 31, 9,337 8,746 Net pension and postretirement liability recognized at December 31, $ (1,661) $ (3,497) $ (198) $ (198) (1) Primarily non-U.S. based defined benefit retirement plans. At December 31, 2021, actuarial losses (gains) consisted primarily of gains for assumption changes related to higher discount rates year-over-year for Swiss, German and Dutch plans. At December 31, 2020, actuarial losses (gains) consisted primarily of losses for assumption changes related to lower discount rates year-over-year for Swiss, German and Dutch plans. At December 31, 2021 and 2020, the Swiss pension plan represented 65% and 63% of the benefit obligation, respectively, and approximately 60% and 59% of the fair value of plan assets at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the U.S. pension plan represented 4% and 4% of the benefit obligation, respectively, and approximately 3% and 4% of the fair value of plan assets at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2021 2020 2021 2020 Other assets $ 323 $ 43 Accrued liabilities — employment costs (24) (26) $ (9) $ (8) Long-term employment costs (1,960) (3,514) (189) (190) $ (1,661) $ (3,497) $ (198) $ (198) The accumulated benefit obligation, which represents benefits earned to date, for the pension plans was $10.4 billion and $11.5 billion at December 31, 2021 and 2020, respectively. For pension plans with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $7.5 billion and $5.9 billion, respectively, as of December 31, 2021. The accumulated benefit obligation and fair value of plan assets were $10.5 billion and $7.7 billion, respectively, as of December 31, 2020. For pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation and fair value of plan assets were $8.6 billion and $6.7 billion, respectively, as of December 31, 2021. The projected benefit obligation and fair value of plan assets were $12.1 billion and $8.6 billion, respectively, as of December 31, 2020. The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2021 2020 2021 2020 Discount rate 0.86 % 0.56 % 3.08 % 2.84 % Rate of compensation increase 1.77 1.79 Interest crediting rate 3.15 3.20 Health care cost trend rate assumed for next year 6.27 6.21 Ultimate trend rate 4.80 4.73 Year that rate reaches the ultimate trend rate 2029 2029 The discount rate for the largest pension plans is based on a yield curve constructed from a portfolio of high quality corporate bonds that produces a cash flow pattern equivalent to each plan’s expected benefit payments. The discount rate for the remaining plans is developed from local bond indices that match local benefit obligations as closely as possible. Components of Net Periodic Benefit Cost Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2021, 2020 and 2019: Pension Postretirement (in millions) 2021 2020 2019 2021 2020 2019 Service cost $ 291 $ 268 $ 214 $ 2 $ 2 $ 2 Interest cost 50 68 118 5 6 7 Expected return on plan assets (371) (353) (328) — — — Amortization: Net losses 314 265 189 3 2 — Prior service cost 1 1 (1) — — — Net transition obligation — 1 — — — — Settlement and curtailment 5 4 4 — — — Net periodic pension and postretirement costs $ 290 $ 254 $ 196 $ 10 $ 10 $ 9 Settlement and curtailment charges were due primarily to employee severance and early retirement programs. The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2021 2020 2019 2021 2020 2019 Discount rate - service cost 0.72 % 1.25 % 2.14 % 2.84 % 3.28 % 3.97 % Discount rate - interest cost 0.44 0.67 1.35 2.84 3.28 3.97 Expected rate of return on plan assets 4.43 4.59 4.70 Rate of compensation increase 1.79 1.82 1.86 Interest crediting rate 3.20 3.20 3.40 Health care cost trend rate 6.21 6.21 6.17 PMI’s expected rate of return on pension plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. PMI and certain of its subsidiaries sponsor defined contribution plans. Amounts charged to expense for defined contribution plans totaled $71 million, $66 million and $63 million for the years ended December 31, 2021, 2020 and 2019, respectively. Plan Assets PMI’s investment strategy for pension plans is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, the target allocation of PMI’s plan assets is broadly characterized as approximately 55% in equity securities and approximately 45% in debt securities and other assets. The strategy primarily utilizes indexed U.S. equity securities, international equity securities and investment-grade debt securities. PMI’s plans have no investments in hedge funds, private equity or derivatives. PMI attempts to mitigate investment risk by rebalancing between equity and debt asset classes once a year or as PMI’s contributions and benefit payments are made. The fair value of PMI’s pension plan assets at December 31, 2021 and 2020, by asset category was as follows: Asset Category At December 31, 2021 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 355 $ 355 Equity securities: U.S. securities 193 193 International securities 658 658 Investment funds (a) 7,317 5,592 $ 1,725 International government bonds 210 139 71 Corporate bonds 278 278 Other 4 3 1 Total assets in the fair value hierarchy $ 9,015 $ 7,218 $ 1,797 $ — Investment funds measured at net asset value (b) 322 Total assets $ 9,337 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 59% are invested in U.S. and international equities; 15% are invested in U.S. and international government bonds; 14% are invested in corporate bonds and 12% are invested in real estate. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Asset Category At December 31, 2020 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 324 $ 324 Equity securities: U.S. securities 175 175 International securities 605 605 Investment funds (a) 6,811 5,206 $ 1,605 International government bonds 225 149 76 Corporate bonds 292 292 Other 7 7 Total assets in the fair value hierarchy $ 8,439 $ 6,758 $ 1,681 $ — Investment funds measured at net asset value (b) 307 Total assets $ 8,746 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 63% were invested in U.S. and international equities; 16% were invested in U.S. and international government bonds; 12% were invested in real estate, and 9% were invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . PMI makes, and plans to make, contributions to the extent that they are tax deductible and to meet specific funding requirements of its funded pension plans. Currently, PMI anticipates making contributions of approximately $108 million in 2022 to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest and currency rates. The estimated future benefit payments from PMI pension plans at December 31, 2021, are as follows: (in millions) 2022 $ 407 2023 421 2024 386 2025 382 2026 400 2027 - 2031 2,193 PMI's expected future annual benefit payments for its postretirement health care plans are estimated to be not material through 2031. Postemployment Benefit Plans PMI and certain of its subsidiaries sponsor postemployment benefit plans covering substantially all salaried and certain hourly employees. The cost of these plans is charged to expense over the working life of the covered employees. Net postemployment costs were $228 million, $208 million and $171 million for the years ended December 31, 2021, 2020 and 2019, respectively. The amounts recognized in accrued postemployment costs net of plan assets on PMI's consolidated balance sheets at December 31, 2021 and 2020, were $925 million and $923 million, respectively. The accrued postemployment costs were determined using a weighted-average discount rate of 3.1% and 3.0% in 2021 and 2020, respectively; an assumed ultimate annual weighted-average turnover rate of 2.9% and 3.0% in 2021 and 2020, respectively; assumed compensation cost increases of 2.1% in 2021 and 2.1% in 2020, and assumed benefits as defined in the respective plans. In accordance with local regulations, certain postemployment plans are funded. As a result, the accrued postemployment costs disclosed above are presented net of the related assets of $46 million and $46 million at December 31, 2021 and 2020, respectively. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Comprehensive Earnings (Losses) The amounts recorded in accumulated other comprehensive losses at December 31, 2021, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (2,495) $ (64) $ (884) $ (3,443) Prior service cost 71 1 (22) 50 Net transition obligation (3) — — (3) Deferred income taxes 278 24 214 516 Losses to be amortized $ (2,149) $ (39) $ (692) $ (2,880) The amounts recorded in accumulated other comprehensive losses at December 31, 2020, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (4,147) $ (64) $ (839) $ (5,050) Prior service cost 22 2 (22) 2 Net transition obligation (3) — — (3) Deferred income taxes 570 24 204 798 Losses to be amortized $ (3,558) $ (38) $ (657) $ (4,253) The amounts recorded in accumulated other comprehensive losses at December 31, 2019, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,718) $ (63) $ (775) $ (4,556) Prior service cost 3 2 — 5 Net transition obligation (4) — — (4) Deferred income taxes 520 24 182 726 Losses to be amortized $ (3,199) $ (37) $ (593) $ (3,829) The movements in other comprehensive earnings (losses) during the year ended December 31, 2021, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 294 $ 4 $ 85 $ 383 Prior service cost 7 (1) — 6 Net transition obligation — — — — Other income/expense: Net losses 5 1 — 6 Prior service cost — — — — Deferred income taxes (51) (1) (20) (72) 255 3 65 323 Other movements during the year: Net losses 1,353 (5) (130) 1,218 Prior service cost 42 — — 42 Deferred income taxes (241) 1 30 (210) 1,154 (4) (100) 1,050 Total movements in other comprehensive earnings (losses) $ 1,409 $ (1) $ (35) $ 1,373 The movements in other comprehensive earnings (losses) during the year ended December 31, 2020, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 250 $ 3 $ 78 $ 331 Prior service cost 29 — — 29 Net transition obligation 1 — — 1 Other income/expense: Net losses 3 — — 3 Prior service cost 2 — — 2 Deferred income taxes (49) (1) (17) (67) 236 2 61 299 Other movements during the year: Net losses (682) (4) (142) (828) Prior service cost (12) — (22) (34) Deferred income taxes 99 1 39 139 (595) (3) (125) (723) Total movements in other comprehensive earnings (losses) $ (359) $ (1) $ (64) $ (424) The movements in other comprehensive earnings (losses) during the year ended December 31, 2019, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 198 $ 3 $ 77 $ 278 Prior service cost 32 (1) — 31 Other income/expense: Net losses 3 — — 3 Deferred income taxes (51) (1) (17) (69) 182 1 60 243 Other movements during the year: Net losses (521) (27) (150) (698) Prior service cost (2) — — (2) Deconsolidation of RBH (net of deferred income taxes) 26 1 — 27 Deferred income taxes 206 6 35 247 (291) (20) (115) (426) Total movements in other comprehensive earnings (losses) $ (109) $ (19) $ (55) $ (183) |
Additional Information
Additional Information | 12 Months Ended |
Dec. 31, 2021 | |
Additional Information [Abstract] | |
Additional Information | Additional Information: For the Years Ended December 31, (in millions) 2021 2020 2019 Research and development expense $ 617 $ 495 $ 465 Advertising expense $ 807 $ 637 $ 730 Foreign currency net transaction (gains)/losses $ 45 $ 90 $ (95) Interest expense $ 737 $ 728 $ 796 Interest income (109) (110) (226) Interest expense, net $ 628 $ 618 $ 570 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and 2020, PMI had contracts with aggregate notional amounts of $20.7 billion and $26.5 billion, respectively. Of the $20.7 billion aggregate notional amount at December 31, 2021, $3.8 billion related to cash flow hedges, $6.2 billion related to hedges of net investments in foreign operations, $0.4 billion related to fair value hedges and $10.3 billion related to other derivatives that primarily offset currency exposures on intercompany financing. Of the $26.5 billion aggregate notional amount at December 31, 2020, $5.0 billion related to cash flow hedges, $8.9 billion related to hedges of net investments in foreign operations and $12.6 billion related to other derivatives that primarily offset currency exposures on intercompany financing. The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2021 and 2020, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2021 2020 Balance Sheet Classification 2021 2020 Derivative contracts designated as hedging instruments Other current assets $ 173 $ 130 Other accrued liabilities $ 34 $ 241 Other assets 22 6 Income taxes and other liabilities 190 605 Derivative contracts not designated as hedging instruments Other current assets 37 46 Other accrued liabilities 75 207 Other assets — — Income taxes and other liabilities — 57 Total gross amount derivatives contracts presented in the consolidated balance sheets $ 232 $ 182 $ 299 $ 1,110 Gross amounts not offset in the consolidated balance sheets Financial instruments (126) (156) (126) (156) Cash collateral received/pledged (93) (23) (151) (892) Net amount $ 13 $ 3 $ 22 $ 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 December 31, 2021 and 2020. For the years ended December 31, 2021, 2020 and 2019, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Years Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2021 2020 2019 2021 2020 2019 2021 2020 2019 Derivative contracts designated as hedging instruments: Cash flow hedges $ 144 $ (81) $ (20) Net revenues $ 59 $ (3) $ 22 Cost of sales — 7 1 Marketing, administration and research costs (10) 27 2 Interest expense, net (7) (11) (8) Fair value hedges Interest expense, net $ 1 $ — $ — Net investment hedges (a) 484 (514) 369 Interest expense, net (b) 150 194 230 Derivative contracts not designated as hedging instruments Interest expense, net 55 71 94 Marketing, administration and research costs (c) 215 (368) (115) Total $ 628 $ (595) $ 349 $ 42 $ 20 $ 17 $ 421 $ (103) $ 209 (a) Amount of gains (losses) on hedges of net investments principally related to changes in exchange and interest rates between the Euro and U.S. dollar (b) Represent the gains for amounts excluded from the effectiveness testing (c) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates substantially offset the (losses) and gains generated by the underlying intercompany and third-party loans being hedged Cash Flow Hedges PMI has entered into derivative contracts to hedge the foreign currency exchange and interest rate risks related to certain forecasted transactions. Gains and losses associated with qualifying cash flow hedge contracts are deferred as components of accumulated other comprehensive losses until the underlying hedged transactions are reported in PMI’s consolidated statements of earnings. As of December 31, 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 consolidated statements of cash flows. Fair Value Hedges PMI has entered into fixed-to-floating interest rate contracts, designated as fair value hedges to minimize exposure to changes in the fair value of fixed rate U.S. dollar-denominated debt that results from fluctuations in benchmark interest rates. For derivative contracts that are designated and qualify as fair value hedges the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged items attributable to the hedged risk, is recognized in current earnings. The carrying amount of the debt hedged, which includes the cumulative adjustment for fair value gains/losses, as of December 31, 2021 was $398 million, and is recorded in long-term debt in the consolidated balance sheets. Hedges of Net Investments in Foreign Operations PMI designates derivative contracts and certain foreign currency denominated debt instruments as net investment hedges, primarily of its Euro net assets. The amount of pre-tax gain/(loss) related to these debt instruments, that was reported as a component of accumulated other comprehensive losses within currency translation adjustment, was $278 million , $(465) million and $234 million, for the years ended December 31, 2021, 2020 and 2019, respectively. The premiums paid for, and settlements of, net investment hedges are included in investing cash flows on PMI’s consolidated statements of cash flows. Other Derivatives PMI has entered into derivative contracts to hedge the foreign currency exchange and interest rate risks related to intercompany loans between certain subsidiaries, and third-party loans. While effective as economic hedges, no hedge accounting is applied for these contracts; therefore, the gains (losses) relating to these contracts are reported in PMI’s consolidated statements of earnings. Qualifying Hedging Activities Reported in Accumulated Other Comprehensive Losses Derivative gains or losses reported in accumulated other comprehensive losses are a result of qualifying hedging activity. Transfers of these gains or losses to earnings are offset by the corresponding gains or losses on the underlying hedged item. Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Gain/(loss) as of January 1, $ (85) $ 3 $ 35 Derivative (gains)/losses transferred to earnings (35) (20) (14) Change in fair value 124 (68) (18) Gain/(loss) as of December 31, $ 4 $ (85) $ 3 At December 31, 2021, PMI expects $27 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses | 12 Months Ended |
Dec. 31, 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 December 31, (in millions) 2021 2020 2019 Currency translation adjustments $ (6,701) $ (6,843) $ (5,537) Pension and other benefits (2,880) (4,253) (3,829) Derivatives accounted for as hedges 4 (85) 3 Total accumulated other comprehensive losses $ (9,577) $ (11,181) $ (9,363) Reclassifications from Other Comprehensive Earnings The movements in accumulated other comprehensive losses and the related tax impact, for each of the components above, that are due to current period activity and reclassifications to the income statement, including those related to the deconsolidation of RBH, are shown on the consolidated statements of comprehensive earnings for the years ended December 31, 2021, 2020, and 2019. For additional information, see Note 13. Benefit Plans for disclosures related to PMI's pension and other benefits, Note 15. Financial Instruments for disclosures related to derivative financial instruments and Note 20. Deconsolidation of RBH for disclosures related to the deconsolidation of RBH. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 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 17. Contingencies, while it is reasonably possible that an unfavorable outcome in a case may occur, after assessing the information available to it (i) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases; and (iii) accordingly, no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases, if any. Legal defense costs are expensed as incurred. It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation. Nevertheless, although litigation is subject to uncertainty, we and each of our subsidiaries named as a defendant believe, and each has been so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid bases for appeal of adverse verdicts. All such cases are, and will continue to be, vigorously defended. However, we and our subsidiaries may enter into settlement discussions in particular cases if we believe it is in our best interests to do so. CCAA Proceedings and Stay of Tobacco-Related Cases Pending in Canada As a result of the Court of Appeal of Quebec’s decision in both the Létourneau and Blais cases described below, our subsidiary, Rothmans, Benson & Hedges Inc. (“RBH”), and the other defendants, JTI Macdonald Corp., and Imperial Tobacco Canada Limited, sought protection in the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (“CCAA”) on March 22, March 8, and March 12, 2019 respectively. CCAA is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course. The initial CCAA order made by the Ontario Superior Court on March 22, 2019 authorizes RBH to pay all expenses incurred in carrying on its business in the ordinary course after the CCAA filing, including obligations to employees, vendors, and suppliers. As further described in Note 20. Deconsolidation of RBH , RBH'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 March 31, 2022 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 $12.1 billion). The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion, including pre-judgment interest (approximately $2.4 billion)). In addition, the trial court awarded CAD 90,000 (approximately $70,500) in punitive damages, allocating CAD 30,000 (approximately $23,500) 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 $177 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 $594 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 $10.6 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 $862 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 $103 million) in punitive damages, allocating CAD 46 million (approximately $36 million) to RBH. The trial court estimated the size of the addiction class at 918,000 members but declined to award compensatory damages to the addiction class because the evidence did not establish the claims with sufficient accuracy. The trial court found that a claims process to allocate the awarded punitive damages to individual class members would be too expensive and difficult to administer. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court’s findings of liability and the total amount of punitive damages awarded allocating CAD 57 million including interest (approximately $45 million) to RBH. See the Blais description above and Note 20. Deconsolidation of RBH below for further detail concerning the security order pertaining to both Létourneau and Blais cases and the impact of the decision on PMI’s financial statements. RBH and PMI believe the findings of liability and damages in both Létourneau and the Blais cases were incorrect and in contravention of applicable law on several grounds including the following: (i) defendants had no obligation to warn class members who knew, or should have known, of the risks of smoking; (ii) defendants cannot be liable to class members who would have smoked regardless of what warnings were given; and (iii) defendants cannot be liable to all class members given the individual differences between class members. In the third class action pending in Canada, Kunta v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Winnipeg, Canada , filed June 12, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic obstructive pulmonary disease (“COPD”), severe asthma, and mild reversible lung disease resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, as well as restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. In the fourth class action pending in Canada, Adams v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Saskatchewan, Canada , filed July 10, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and COPD resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who have smoked a minimum of 25,000 cigarettes and have allegedly suffered, or suffer, from COPD, emphysema, heart disease, or cancer, as well as restitution of profits. In the fifth class action pending in Canada, Semple v. Canadian Tobacco Manufacturers' Council, et al., The Supreme Court (trial court), Nova Scotia, Canada , filed June 18, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges his own addiction to tobacco products and COPD resulting from the use of tobacco products. He is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, as well as restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. In the sixth class action pending in Canada, Dorion v. Canadian Tobacco Manufacturers' Council, et al., The Queen's Bench, Alberta, Canada, filed June 15, 2009, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and chronic bronchitis and severe sinus infections resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers, their estates, dependents and family members, restitution of profits, and reimbursement of government health care costs allegedly caused by tobacco products. To date, we, our subsidiaries, and our indemnitees have not been properly served with the complaint. In the seventh class action pending in Canada, McDermid v. Imperial Tobacco Canada Limited, et al., Supreme Court, British Columbia, Canada , filed June 25, 2010, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges his own addiction to tobacco products and heart disease resulting from the use of tobacco products. He is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who were alive on June 12, 2007, and who suffered from heart disease allegedly caused by smoking, their estates, dependents and family members, plus disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. In the eighth class action pending in Canada, Bourassa v. Imperial Tobacco Canada Limited, et al., Supreme Court, British Columbia, Canada , filed June 25, 2010, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, the heir to a deceased smoker, alleges that the decedent was addicted to tobacco products and suffered from emphysema resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who were alive on June 12, 2007, and who suffered from chronic respiratory diseases allegedly caused by smoking, their estates, dependents and family members, plus disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. In December 2014, plaintiff filed an amended statement of claim. In the ninth class action pending in Canada, Suzanne Jacklin v. Canadian Tobacco Manufacturers' Council, et al., Ontario Superior Court of Justice, filed June 20, 2012, we, RBH, and our indemnitees (PM USA and Altria), and other members of the industry are defendants. The plaintiff, an individual smoker, alleges her own addiction to tobacco products and COPD resulting from the use of tobacco products. She is seeking compensatory and punitive damages on behalf of a proposed class comprised of all smokers who have smoked a minimum of 25,000 cigarettes and have allegedly suffered, or suffer, from COPD, heart disease, or cancer, as well as restitution of profits. Health Care Cost Recovery Litigation — Canada In the first health care cost recovery case pending in Canada, Her Majesty the Queen in Right of British Columbia v. Imperial Tobacco Limited, et al., Supreme Court, British Columbia, Vancouver Registry, Canada, filed January 24, 2001, we, RBH, our indemnitee (PM USA), and other members of the industry are defendants. The plaintiff, the government of the province of British Columbia, brought a claim based upon legislation enacted by the province authorizing the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, resulting from a “tobacco related wrong.” In the second health care cost recovery case filed in Canada, Her Majesty the Queen in Right of New Brunswick v. Rothmans Inc., et al., Court of Queen's Bench of New Brunswick, Trial Court, New Brunswick, Fredericton, Canada, filed March 13, 2008, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of New Brunswick based on legislation enacted in the province. This legislation is similar to the law introduced in British Columbia that authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the third health care cost recovery case filed in Canada, Her Majesty the Queen in Right of Ontario v. Rothmans Inc., et al., Ontario Superior Court of Justice, Toronto, Canada , filed September 29, 2009, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Ontario based on legislation enacted in the province. This legislation is similar to the laws introduced in British Columbia and New Brunswick that authorize the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the fourth health care cost recovery case filed in Canada, Attorney General of Newfoundland and Labrador v. Rothmans Inc., et al., Supreme Court of Newfoundland and Labrador, St. Johns, Canada , filed February 8, 2011, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Newfoundland and Labrador based on legislation enacted in the province that is similar to the laws introduced in British Columbia, New Brunswick and Ontario. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the fifth health care cost recovery case filed in Canada, Attorney General of Quebec v. Imperial Tobacco Limited, et al., Superior Court of Quebec, Canada , filed June 8, 2012, we, RBH, our indemnitee (PM USA), and other members of the industry are defendants. The claim was filed by the government of the province of Quebec based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the sixth health care cost recovery case filed in Canada, Her Majesty in Right of Alberta v. Altria Group, Inc., et al., Supreme Court of Queen's Bench Alberta, Canada , filed June 8, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Alberta based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the seventh health care cost recovery case filed in Canada, Her Majesty the Queen in Right of the Province of Manitoba v. Rothmans, Benson & Hedges, Inc., et al., The Queen's Bench, Winnipeg Judicial Centre, Canada , filed May 31, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Manitoba based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the eighth health care cost recovery case filed in Canada, The Government of Saskatchewan v. Rothmans, Benson & Hedges Inc., et al., Queen's Bench, Judicial Centre of Saskatchewan, Canada , filed June 8, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Saskatchewan based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the ninth health care cost recovery case filed in Canada, Her Majesty the Queen in Right of the Province of Prince Edward Island v. Rothmans, Benson & Hedges Inc., et al., Supreme Court of Prince Edward Island (General Section), Canada , filed September 10, 2012, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Prince Edward Island based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” In the tenth health care cost recovery case filed in Canada, Her Majesty the Queen in Right of the Province of Nova Scotia v. Rothmans, Benson & Hedges Inc., et al., Supreme Court of Nova Scotia, Canada , filed January 2, 2015, we, RBH, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Nova Scotia based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” __________ The table below lists the number of tobacco-related cases pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of December 31, 2021, December 31, 2020 and December 31, 2019:¹ Type of Case Number of Cases Pending as of December 31, 2021 Number of Cases Pending as of December 31, 2020 Number of Cases Pending as of December 31, 2019 Individual Smoking and Health Cases 40 43 50 Smoking and Health Class Actions 9 9 10 Health Care Cost Recovery Actions 17 17 17 Label-Related Class Actions — — — Individual Label-Related Cases 3 5 5 Public Civil Actions 1 2 2 Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 523 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. ______ ¹ Includes cases pending in Canada. 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: Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $12.1 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.4 billion)). The trial court awarded CAD 90,000 (approximately $70,500) in punitive damages, allocating CAD 30,000 (approximately $23,500) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $783 million) of the compensatory damage award, CAD 200 million (approximately $157 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 $103 million) in punitive damages, allocating CAD 46 million (approximately $36 million) to RBH. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “ Stayed Litigation — Canada ” for further detail.) Date Location of Type of Verdict Post-Trial August 5, 2016 Argentina/Hugo Lespada Individual Action On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $1,044), 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 May 17, 2021 plaintiff filed a federal extraordinary appeal. On November 1, 2021, the Supreme Court of the Province of Buenos Aires dismissed plaintiff's federal extraordinary appeal. On November 10, 2021, plaintiff filed a direct appeal before the Federal Supreme Court. 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 $1,423), in compensatory and moral damages, and ARS 4,000,000 (approximately $37,958) 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 deposited the damages awarded, plus interest and costs, in total ARS 6,114,428 (approximately $58,024), into a court escrow account. Our subsidiary challenged the amount determined by the court. The Mar del Plata Court of Appeals granted our subsidiary's challenge to the escrow amount determined by the trial court. As a result, on December 16, 2021, ARS 893,428 (approximately $8,478) was returned to our subsidiary. If our subsidiary ultimately prevails on appeal, the remaining 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 December 31, 2021, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 40 cases brought by individual plaintiffs in Argentina (31), Brazil (2), Canada (2), Chile (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 43 such cases on December 31, 2020, and 50 cases on December 31, 2019; and • 9 cases brought on behalf of classes of individual plaintiffs, compared with 9 such cases on December 31, 2020 and 10 such cases on December 31, 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 statutes governing competition and deceptive trade practices. Plaintiffs in these cases seek various forms of rel |
Sale of Accounts Receivable
Sale of Accounts Receivable | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets. PMI sells trade receivables under two types of arrangements, servicing and non-servicing. For servicing arrangements, PMI continues to service the sold trade receivables on an administrative basis and does not act on behalf of the unaffiliated financial institutions. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material for the years ended December 31, 2021 and 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 years ended December 31, 2021 and 2020, were $11.8 billion and $11.5 billion, respectively. PMI’s operating cash flows were positively impacted by the amount of the trade receivables sold and derecognized from the consolidated balance sheets, which remained outstanding with the unaffiliated financial institutions. The trade receivables sold that remained outstanding under these arrangements as of December 31, 2021, 2020 and 2019, were $0.9 billion, $1.2 billion and $0.9 billion, respectively. The net proceeds received are included in cash provided by operating activities in the consolidated statements of cash flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of trade receivables within marketing, administration and research costs in the consolidated statements of earnings. For the years ended December 31, 2021, 2020 and 2019 the loss on sale of trade receivables was immaterial. |
Asset Impairment and Exit Costs
Asset Impairment and Exit Costs | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs | Asset Impairment and Exit Costs: For the years ended December 31, 2021, 2020 and 2019, PMI recorded total pre-tax asset impairment and exit costs of $216 million, $149 million and $422 million, respectively. The total pre-tax asset impairment and exit costs were included in marketing, administration and research costs on the 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 $57 million in the year ended December 31, 2021, related to contract terminations and restructuring with certain distributors. 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. The consultation procedures for the first two phases were completed in 2020 with the final phases initiated and completed in 2021. 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 was completed in the fourth quarter of 2021. For the years ended December 31, 2021 and 2020, PMI recorded pre-tax charges of $159 million and $149 million, respectively, related to the organizational design optimization. Since inception of this multi-phase restructuring project in January 2020 through December 31, 2021, approximately 1,020 positions in total were impacted, resulting in cumulative pre-tax charges of $308 million related to the organizational design optimization program. Of this cumulative pre-tax amount, $300 million related to separation program charges and $8 million related to asset impairment charges. Global Manufacturing Infrastructure Optimization In light of declining PMI cigarette volumes resulting from lower total industry volumes and the shift to smoke-free alternatives, PMI continues to optimize its global manufacturing infrastructure. During 2019, PMI recorded asset impairment and exit costs related to plant closures in Argentina, Colombia, Germany and Pakistan as part of its global manufacturing infrastructure optimization. Germany On November 4, 2019, PMI announced that, as part of its global manufacturing infrastructure optimization, its German affiliate, Philip Morris Manufacturing GmbH ("PMMG"), reached an agreement with employee representatives to end cigarette production in its factory in Berlin, Germany, by January 1, 2020. As a result of this agreement, during 2019, PMI recorded pre-tax asset impairment and exit costs of $342 million in the European Union segment. This amount included pension and employee separation costs of $251 million, which are paid in cash, and asset impairment costs of $91 million, primarily related to machinery and equipment, which were non-cash charges. Other During 2019, PMI also recorded pre-tax asset impairment and exit costs of $80 million as part of its global manufacturing infrastructure optimization. These costs were related to cigarette plant closures in Argentina ($15 million), Colombia ($45 million) and Pakistan ($20 million). The charges were reflected in the Americas segment (Argentina and Colombia) and the South & Southeast Asia segment (Pakistan). Asset Impairment and Exit Costs by Segment During 2021, 2020 and 2019, PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) 2021 2020 2019 Separation programs: (1) European Union $ 68 $ 53 $ 251 Eastern Europe 14 14 — Middle East & Africa 17 18 — South & Southeast Asia 21 22 3 East Asia & Australia 31 25 — Americas 8 9 49 Total separation programs 159 141 303 Contract termination charges: East Asia & Australia 57 — — Total contract termination charges 57 — — Asset impairment charges (1) European Union — 4 91 Eastern Europe — 1 — Middle East & Africa — 1 — South & Southeast Asia — 1 17 East Asia & Australia — 1 — Americas — — 11 Total asset impairment charges — 8 119 Asset impairment and exit costs $ 216 149 422 (1) Organizational design optimization pre-tax charges in 2021 and 2020 were allocated across all geographical segments. Movement in Exit Cost Liabilities The movement in exit cost liabilities for the year ended December 31, 2021 was as follows: (in millions) Liability balance, January 1, 2021 $ 180 Charges, net 216 Cash spent (238) Currency/other (16) Liability balance, December 31, 2021 $ 142 Future cash payments for exit costs incurred to date are anticipated to be substantially paid by the end of 2023. |
Deconsolidation of RBH
Deconsolidation of RBH | 12 Months Ended |
Dec. 31, 2021 | |
Deconsolidation [Abstract] | |
Deconsolidation of RBH | Deconsolidation of RBH: As discussed in Note 17. Contingencies, following the March 1, 2019, judgment of the Court of Appeal of Québec in two class action lawsuits against PMI's Canadian subsidiary, Rothmans, Benson & Hedges Inc. ("RBH"), PMI recorded in its consolidated results a pre-tax charge of $194 million, representing $142 million net of tax, in the first quarter of 2019. This pre-tax Canadian tobacco litigation-related expense was included in marketing, administration and research costs on PMI's consolidated statement of earnings for the year ended December 31, 2019. The charge reflects PMI’s assessment of the portion of the judgment that represents probable and estimable loss prior to the deconsolidation of RBH and corresponds to the trust account deposit required by the judgment. RBH’s share of the deposit is approximately CAD 257 million. On March 22, 2019, RBH obtained an initial order from the Ontario Superior Court of Justice granting it protection under the Companies’ Creditors Arrangement Act ("CCAA"), which is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course with minimal disruption to its customers, suppliers and employees. The administration of the CCAA process, principally relating to the powers provided to the court and the court appointed monitor, removes certain elements of control of the business from both PMI and RBH. As a result, PMI has determined that it no longer has a controlling financial interest over RBH as defined in ASC 810 (Consolidation), and PMI deconsolidated RBH as of the date of the CCAA filing. PMI has also determined that it does not exert "significant influence" over RBH as that term is defined in ASC 323 (Investments-Equity Method and Joint Ventures). Therefore, as of March 22, 2019, PMI accounted for its continuing investment in RBH in accordance with ASC 321 (Investments-Equity Securities) as an equity security, without readily determinable fair value. Following the deconsolidation, the carrying value of assets and liabilities of RBH was removed from the consolidated balance sheet of PMI, and the continuing investment in RBH was recorded at fair value at the date of deconsolidation. The total amount deconsolidated from PMI’s balance sheet was $3,519 million, including $1,323 million of cash, $1,463 million of goodwill, $529 million of accumulated other comprehensive earnings, primarily related to historical currency translation and $204 million of other assets and liabilities, net. While PMI is accounting for its investment in RBH as an equity security, PMI would recognize dividends as income upon receipt. However, while it remains under creditor protection, RBH does not anticipate paying dividends. The fair value of PMI’s continuing investment in RBH of $3,280 million was determined at the date of deconsolidation, recorded within equity investments and is assessed for impairment on an ongoing basis. The estimated fair value of the underlying business was determined based on an income approach using a discounted cash flow analysis, as well as a market approach for certain contingent liabilities. The information used in the estimate includes observable inputs, primarily a discount rate of 8%, a terminal growth rate of 2.5% and information about total tobacco market size in Canada and RBH’s share of the market, as well as unobservable inputs such as operating budgets and strategic plans, various inflation scenarios, estimated shipment volumes, and expected product pricing and projected margins. The difference between the carrying value of the assets and liabilities of RBH that were deconsolidated and the fair value of the continuing investment, as determined at the date of deconsolidation, was $239 million, before tax, and this loss on deconsolidation is reflected within marketing, administration and research costs on PMI’s consolidated statement of earnings for the year ended December 31, 2019. PMI also recorded a tax benefit of $49 million within the provision for income taxes for the year ended December 31, 2019, related to the reversal of a deferred tax liability on unremitted earnings of RBH. RBH is party to transactions with PMI and its consolidated subsidiaries entered into in the normal course of business; these transactions include royalty payments and recharge of various corporate expenses for services benefiting RBH. Up to the date of the CCAA filing, these transactions were eliminated on consolidation and had no impact on PMI’s consolidated statement of earnings. After deconsolidating RBH, these transactions are treated as third-party transactions in PMI’s financial statements. The amount of these related-party transactions is included within Note 4. Related Parties - Equity investments and Other. Developments in the CCAA process, including resolution through a plan of arrangement or compromise of all pending tobacco-related litigation currently stayed in Canada, as discussed in Note 17. Contingencies , could result in a material change in the fair value of PMI’s continuing investment in RBH. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases: PMI has operating and finance leases that are principally for real estate (office space, warehouses and retail store space), machinery and equipment, and vehicles. Lease terms range from 1 year to 72 years, some of which include options to renew, which are reasonably certain to be renewed. Lease terms may also include options to terminate the lease. The exercise of a lease renewal or termination option is at PMI’s discretion. PMI’s operating and finance leases at December 31, 2021 and 2020, were as follows: At December 31, (in millions) 2021 2020 Operating Leases Finance Leases Operating Leases Finance Leases Assets: Machinery and equipment $ — $ 108 $ — $ 12 Other assets 526 — 697 64 Total lease assets $ 526 $ 108 $ 697 $ 76 Liabilities: Current Current portion of long-term debt $ — $ 48 $ — $ 13 Accrued liabilities - Other 192 — 190 — Noncurrent Long-term debt — 23 — 24 Income taxes and other liabilities 344 — 517 — Total lease liabilities $ 536 $ 71 $ 707 $ 37 The components of PMI’s lease cost were as follows for the years ended December 31, 2021, 2020 and 2019: For the Years Ended December 31, (in millions) 2021 2020 2019 Operating lease cost $ 259 $ 237 $ 242 Finance lease cost: Amortization of right-of-use assets 54 31 18 Interest on lease liabilities 1 1 1 Short-term lease cost 55 49 61 Variable lease cost 25 31 29 Total lease cost $ 394 $ 349 $ 351 Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2021, were as follows: (in millions) Operating Leases Finance Leases 2022 $ 215 $ 49 2023 131 18 2024 84 2 2025 54 1 2026 24 1 Thereafter 140 1 Total lease payments 648 72 Less: Interest 112 1 Present value of lease liabilities $ 536 $ 71 Other information related to PMI’s leases was as follows for the year ended December 31, 2021, 2020 and 2019: December 31, (in millions) 2021 2020 2019 Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1) $ 259 $ — $ 238 $ — $ 240 $ — Cash paid for amounts included in the measurement of lease liabilities in financing cash flows $ — $ 26 $ — $ 19 $ — $ 15 Leased assets obtained in exchange for new lease liabilities $ 64 $ 89 $ 149 $ 32 $ 221 $ 38 Weighted-average remaining lease term (years) 8.3 1.7 10.1 1.6 9.6 2.4 Weighted-average discount rate (2) (3) 3.6 % 5.3 % 4.3 % 6.7 % 4.4 % 7.1 % (1) Cash paid included in the operating cash flows of finance leases is not material. (2) PMI’s weighted-average discount rate for operating leases is based on its estimated pre-tax cost of debt adjusted for country-specific risk. (3) PMI’s weighted-average discount rate for finance leases, excluding embedded leases, is based on its estimated pre-tax cost of debt adjusted for country-specific risk and where applicable the interest rate explicit to lease contracts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. Investments without readily determinable fair values, non-marketable equity securities, are measured and recorded using a measurement alternative that values the security at cost minus any impairment. All intercompany transactions and balances have been eliminated. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Depreciation | DepreciationProperty, plant and equipment are stated at historical cost and depreciated primarily using the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated primarily over periods ranging from 3 to 15 years, and buildings and building improvements primarily over periods up to 40 years. |
Employee benefit plans | Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. |
Fair value measurements | Fair value measurements PMI follows ASC 820, Fair Value Measurements and Disclosures with respect to assets and liabilities that are measured at fair value. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of input that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Foreign currency translation | Foreign currency translationPMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. |
Goodwill and non-amortizable intangible assets valuation | Goodwill and non-amortizable intangible assets valuationPMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. |
Hedging instruments | Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. |
Impairment of long-lived assets | Impairment of long-lived assetsPMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Impairment of investments in non-marketable equity securities and impairment of equity method investments | Impairment of investment in non-marketable equity securities Non-marketable equity securities are subject to periodic impairment reviews during which PMI considers both qualitative and quantitative factors that may have a significant impact on the investees' fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. For further details see Note 20. Deconsolidation of RBH . Impairment of equity method investments |
Income taxes | Income taxesIncome taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. PMI recognizes income taxes associated with Global Intangible Low-Taxed Income ("GILTI") taxes as current period expense rather than including these amounts in the measurement of deferred taxes. |
Inventories | Inventories Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. |
Leases | Leases PMI determines that a contract contains a lease if the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Operating lease expense is recognized on a straight-line basis over the lease ter m. Finance lease expense is amortized based on production activity or the lease term. Lease expense is recorded |
Marketing costs | Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. |
Revenue recognition | Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and reduced-risk products, including heat-not-burn, vapor and oral nicotine products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. |
Stock-based compensation | Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 9. Stock Plans . |
Research and Development and Acquired In-Process Research and Development ("IPR&D") | Research and Development and Acquired In-Process Research and Development ("IPR&D") Research and development costs are expensed as incurred. In a business combination, the fair value of IPR&D acquired is initially capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the projects. Upon completion, a determination as to the useful life is performed and the intangible asset is accounted for as a definite-lived intangible asset. Both the indefinite and definite-lived intangible assets are subject to impairment testing annually or more frequently if indicators exist. In an asset acquisition, the initial cost to acquire the IPR&D is expensed in the consolidated statements of earnings when the project has no alternative future use. PMI records these costs within marketing, administration and research costs in its consolidated statements of earnings. |
Research and Development and Acquired In-Process Research and Development ("IPR&D") | Research and Development and Acquired In-Process Research and Development ("IPR&D") Research and development costs are expensed as incurred. In a business combination, the fair value of IPR&D acquired is initially capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the projects. Upon completion, a determination as to the useful life is performed and the intangible asset is accounted for as a definite-lived intangible asset. Both the indefinite and definite-lived intangible assets are subject to impairment testing annually or more frequently if indicators exist. In an asset acquisition, the initial cost to acquire the IPR&D is expensed in the consolidated statements of earnings when the project has no alternative future use. PMI records these costs within marketing, administration and research costs in its consolidated statements of earnings. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 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 Americas Other Total Balances at January 1, 2020 $ 1,338 $ 300 $ 89 $ 2,898 $ 551 $ 682 $ — $ 5,858 Changes due to: Currency 96 17 (3) 17 8 (29) — 106 Balances, December 31, 2020 1,434 317 86 2,915 559 653 — 5,964 Changes due to: Acquisitions 30 — — — — — 968 998 Currency (91) (22) (7) (87) (20) (42) (13) (282) Balances, December 31, 2021 $ 1,373 $ 295 $ 79 $ 2,828 $ 539 $ 611 $ 955 $ 6,680 |
Schedule of Amortizable Intangible Assets | Details of other intangible assets were as follows: December 31, 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 $ 1,312 $ 1,312 $ 1,289 $ 1,289 Amortizable intangible assets: Trademarks 12 years 1,201 $ 639 562 1,233 $ 594 639 Developed technology, including patents 12 years 859 63 796 93 41 52 Other (1) 12 years 238 90 148 126 87 39 Total other intangible assets $ 3,610 $ 792 $ 2,818 $ 2,741 $ 722 $ 2,019 (1) Primarily includes distribution networks and customer relationships. |
Schedule of Non-Amortizable Intangible Assets | Details of other intangible assets were as follows: December 31, 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 $ 1,312 $ 1,312 $ 1,289 $ 1,289 Amortizable intangible assets: Trademarks 12 years 1,201 $ 639 562 1,233 $ 594 639 Developed technology, including patents 12 years 859 63 796 93 41 52 Other (1) 12 years 238 90 148 126 87 39 Total other intangible assets $ 3,610 $ 792 $ 2,818 $ 2,741 $ 722 $ 2,019 (1) Primarily includes distribution networks and customer relationships. |
Related Parties - Equity Inve_2
Related Parties - Equity Investments and Other (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Activity with Related Parties - Equity Investments and Other | PMI’s net revenues and expenses with the above related parties were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Net revenues Megapolis Group $ 2,207 $ 2,174 $ 2,236 Other 1,123 1,059 1,015 Net revenues (a) $ 3,330 $ 3,233 $ 3,251 Expenses: Other $ 69 $ 51 $ 63 Expenses $ 69 $ 51 $ 63 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: At December 31, (in millions) 2021 2020 Receivables: Megapolis Group $ 319 $ 209 Other 199 156 Receivables $ 518 $ 365 Payables: Other $ 25 $ 13 Payables $ 25 $ 13 |
Product Warranty (Tables)
Product Warranty (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Product Warranty | At December 31, 2021 and December 31, 2020, these amounts were as follows: At December 31, (in millions) 2021 2020 Balance at beginning of period $ 137 $ 140 Changes due to: Warranties issued 154 242 Settlements (177) (254) Currency/Other (1) 9 Balance at end of period $ 113 $ 137 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | At December 31, 2021 and 2020, PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2021 December 31, 2020 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ — — % $ — — % Bank loans 225 12.0 244 5.3 $ 225 $ 244 |
Long-Term Debt | At December 31, 2021 and 2020, PMI’s long-term debt consisted of the following: December 31, (in millions) 2021 2020 U.S. dollar notes, 0.875% to 6.375% (average interest rate 3.245%), due through 2044 $ 19,397 $ 21,221 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.995%), due through 2039 7,687 9,253 Swiss franc notes, 1.625%, due 2024 273 622 Other (average interest rate 3.329%), due through 2029 (a) 224 196 Carrying value of long-term debt 27,581 31,292 Less current portion of long-term debt 2,798 3,124 $ 24,783 $ 28,168 |
Schedule of Fair Value of Outstanding Long-Term Debt, Excluding Finance Leases | At December 31, 2021 and 2020 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: December 31, (in millions) 2021 2020 Level 1 $ 29,597 $ 35,227 Level 2 165 177 |
Debt Issuances Outstanding | PMI’s debt issuances outstanding at December 31, 2021, were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $500 2.625% February 2017 February 2022 U.S. dollar notes $750 2.375% August 2017 August 2022 U.S. dollar notes $750 2.500% August 2012 August 2022 U.S. dollar notes $750 2.500% November 2017 November 2022 U.S. dollar notes $600 2.625% March 2013 March 2023 U.S. dollar notes $500 2.125% May 2016 May 2023 U.S. dollar notes $750 1.125% May 2020 May 2023 U.S. dollar notes $500 3.600% November 2013 November 2023 U.S. dollar notes $900 2.875% May 2019 May 2024 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $750 1.500% May 2020 May 2025 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $750 0.875% November 2020 May 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $500 3.125% November 2017 March 2028 U.S. dollar notes $750 3.375% May 2019 August 2029 U.S. dollar notes $750 2.100% May 2020 May 2030 U.S. dollar notes $750 1.750% November 2020 November 2030 U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (a) $500 4.250% May 2016 November 2044 EURO notes (b) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (b) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (b) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (b) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (b) €500 (approximately $557) 0.125% August 2019 August 2026 EURO notes (b) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (b) €750 (approximately $835) 0.800% August 2019 August 2031 EURO notes (b) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (b) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (b) €500 (approximately $582) 1.875% November 2017 November 2037 EURO notes (b) €750 (approximately $835) 1.450% August 2019 August 2039 Swiss franc notes (b) CHF250 (approximately $283) 1.625% May 2014 May 2024 (a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. |
Schedule of Maturities of Long-term Debt | Aggregate maturities of long-term debt are as follows: (in millions) 2022 $ 2,798 2023 2,371 2024 3,318 2025 2,351 2026 3,199 2027-2031 4,666 2032-2036 1,132 Thereafter 7,965 27,800 Debt discounts (219) Total long-term debt $ 27,581 |
Schedule of Committed Credit Facilities | At December 31, 2021, PMI’s total committed credit facilities were as follows: Type Committed 364-day revolving credit, expiring February 1, 2022 $ 1.8 Multi-year revolving credit, expiring February 10, 2026 2.0 Multi-year revolving credit, expiring September 29, 2026 (1) 2.5 Total facilities $ 6.3 (1) Includes pricing adjustments that may result in the reduction or increase in both the interest rate and commitment fee under the credit agreement if PMI achieves, or fails to achieve, certain specified targets. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Common Stock | Shares of authorized common stock are 6.0 billion; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2019 2,109,316,331 (554,736,610) 1,554,579,721 Issuance of stock awards 1,314,942 1,314,942 Balances, December 31, 2019 2,109,316,331 (553,421,668) 1,555,894,663 Issuance of stock awards 1,479,068 1,479,068 Balances, December 31, 2020 2,109,316,331 (551,942,600) 1,557,373,731 Repurchase of shares (8,514,629) (8,514,629) Issuance of stock awards 1,310,891 1,310,891 Balances, December 31, 2021 2,109,316,331 (559,146,338) 1,550,169,993 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |
Activity for Restricted Stock | During 2021, the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2021 4,098,240 $ 86.21 Granted 2,020,860 82.17 Vested (1,256,441) 96.01 Forfeited (221,895) 82.97 Balance at December 31, 2021 4,640,764 $ 81.96 |
Schedule of Weighted Average Grant Date Fair Value and Compensation Expense Related to Share-Based Awards | During the years ended December 31, 2021, 2020 and 2019, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2021 $ 166 $ 82.17 $ 139 2020 $ 148 $ 85.79 $ 129 2019 $ 133 $ 77.28 $ 118 During the years ended December 31, 2021, 2020 and 2019, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) PSU Grant Date Fair Value Subject to Other Performance Factors PSU Grant Date Fair Value Subject to TSR Performance Factor Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2021 $ 28 $ 81.86 $ 25 $ 106.93 $ 71 2020 $ 28 $ 86.04 $ 28 $ 80.36 $ 38 2019 $ 30 $ 77.23 $ 21 $ 83.59 $ 54 During the years ended December 31, 2021, 2020 and 2019, share and fair value information for PMI PSU awards that vested were as follows: (dollars in millions) Shares of PSU Awards that Vested Grant Date Fair Value of Vested Shares of PSU Awards Total Fair Value of PSU Awards that Vested 2021 189,839 $ 21 $ 16 2020 343,806 $ 35 $ 30 2019 330,616 $ 32 $ 28 |
Schedule of Share and Fair Value Information for RSU Awards that Vested | During the years ended December 31, 2021, 2020 and 2019, share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2021 1,256,441 $ 121 $ 111 2020 1,206,871 $ 117 $ 102 2019 1,126,057 $ 101 $ 95 |
Activity for Performance Share Unit Awards | During 2021, the activity for PSU awards was as follows: Number of Grant Date Grant Date (Per Share) (Per Share) Balance at January 1, 2021 1,472,800 $ 86.76 $ 90.48 Granted 574,410 81.86 106.93 Vested (189,839) 100.69 118.98 Forfeited (320,351) 97.76 72.55 Balance at December 31, 2021 1,537,020 $ 82.14 $ 96.25 |
Schedule of Assumptions Used for PSU | The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2021, 2020 and 2019: For the Years Ended December 31, 2021 2020 2019 Risk-free interest rate (a) 0.2 % 1.4 % 2.4 % Expected volatility (b) 31.7 % 23.5 % 21.4 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2021 2020 2019 Net earnings attributable to PMI $ 9,109 $ 8,056 $ 7,185 Less distributed and undistributed earnings attributable to share-based payment awards 26 20 17 Net earnings for basic and diluted EPS $ 9,083 $ 8,036 $ 7,168 Weighted-average shares for basic EPS 1,558 1,557 1,555 Plus contingently issuable performance stock units (PSUs) 1 1 1 Weighted-average shares for diluted EPS 1,559 1,558 1,556 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings Before Income Taxes and Provision For Income Taxes | Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2021, 2020 and 2019: (in millions) 2021 2020 2019 Earnings before income taxes $ 12,232 $ 10,953 $ 9,872 Provision for income taxes: United States federal and state: Current $ 73 $ (80) $ 17 Deferred 27 53 24 Total United States 100 (27) 41 Outside United States: Current 2,616 2,600 2,417 Deferred (45) (196) (165) Total outside United States 2,571 2,404 2,252 Total provision for income taxes $ 2,671 $ 2,377 $ 2,293 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2021 2020 2019 Balance at January 1, $ 72 $ 63 $ 56 Additions based on tax positions related to the current year 12 11 10 Additions for tax positions of previous years 15 1 1 Reductions for tax positions of prior years (1) (4) (2) Reductions due to lapse of statute of limitations (3) (1) (1) Settlements — — — Other (6) 2 (1) Balance at December 31, $ 89 $ 72 $ 63 |
Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties | Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2021 December 31, 2020 December 31, 2019 Unrecognized tax benefits $ 89 $ 72 $ 63 Accrued interest and penalties 18 17 16 Tax credits and other indirect benefits (7) (9) (12) Liability for tax contingencies $ 100 $ 80 $ 67 |
Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: Foreign rate differences (0.3) 0.6 1.8 Dividend repatriation cost 0.6 0.4 (0.5) Global intangible low-taxed income 0.8 0.1 1.4 U.S. state taxes 0.2 0.2 0.7 Foreign derived intangible income (0.7) (0.6) (1.2) Other 0.2 — — Effective tax rate 21.8 % 21.7 % 23.2 % |
Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2021 2020 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 234 $ 225 Accrued pension costs 392 720 Inventory (1) 177 232 Accrued liabilities 168 182 Net operating loss carryforwards and tax credits 408 351 Foreign exchange — 27 Other 112 124 Total deferred income tax assets 1,491 1,861 Less: valuation allowance (239) (250) Deferred income tax assets, net of valuation allowance 1,252 1,611 Deferred income tax liabilities: Trade names (591) (374) Property, plant and equipment (140) (200) Unremitted earnings (206) (311) Foreign exchange (146) — Total deferred income tax liabilities (1,083) (885) Net deferred income tax assets $ 169 $ 726 (1) Includes deferred tax charges of $153 million and $209 million in 2021 and 2020, respectively, related to intercompany transactions. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Data | Net revenues by geographic segment and Other category were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Net revenues: European Union $ 12,275 $ 10,702 $ 9,817 Eastern Europe 3,544 3,378 3,282 Middle East & Africa 3,293 3,088 4,042 South & Southeast Asia 4,396 4,396 5,094 East Asia & Australia 5,953 5,429 5,364 Americas 1,843 1,701 2,206 Other 101 — — Net revenues $ 31,405 $ 28,694 $ 29,805 PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Combustible products: European Union $ 8,211 $ 8,053 $ 8,093 Eastern Europe 2,240 2,250 2,438 Middle East & Africa 3,148 3,031 3,721 South & Southeast Asia 4,385 4,395 5,094 East Asia & Australia 2,414 2,468 2,693 Americas 1,790 1,670 2,179 Total combustible products $ 22,190 $ 21,867 $ 24,218 Reduced-risk products: European Union $ 4,064 $ 2,649 $ 1,724 Eastern Europe 1,304 1,128 844 Middle East & Africa 145 57 321 South & Southeast Asia 11 1 — East Asia & Australia 3,539 2,961 2,671 Americas 53 31 27 Total reduced-risk products $ 9,115 $ 6,827 $ 5,587 Other: Other $ 101 $ — $ — Total PMI net revenues $ 31,405 $ 28,694 $ 29,805 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Operating income (loss) by geographic segment and Other category were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Operating income (loss): European Union $ 6,119 $ 5,098 $ 3,970 Eastern Europe 1,213 871 547 Middle East & Africa 1,146 1,026 1,684 South & Southeast Asia 1,506 1,709 2,163 East Asia & Australia 2,556 2,400 1,932 Americas 487 564 235 Other (52) — — Operating income $ 12,975 $ 11,668 $ 10,531 |
Depreciation Expense, Capital Expenditures, and Long-Lived Assets by Segment | Other segment data were as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Depreciation expense: European Union $ 307 $ 266 $ 254 Eastern Europe 131 173 147 Middle East & Africa 89 75 90 South & Southeast Asia 143 137 142 East Asia & Australia 154 188 185 Americas 62 69 80 Other 16 — — Total depreciation expense $ 902 $ 908 $ 898 For the Years Ended December 31, (in millions) 2021 2020 2019 Capital expenditures: European Union $ 470 $ 384 $ 466 Eastern Europe 71 88 132 Middle East & Africa 37 22 35 South & Southeast Asia 52 57 100 East Asia & Australia 36 13 67 Americas 54 38 52 Other 28 — — Total capital expenditures $ 748 $ 602 $ 852 At December 31, (in millions) 2021 2020 2019 Long-lived assets: European Union $ 4,504 $ 4,500 $ 4,275 Eastern Europe 635 668 774 Middle East & Africa 289 375 369 South & Southeast Asia 1,386 1,348 1,361 East Asia & Australia 740 807 829 Americas 661 784 680 Other 292 — — Total long-lived assets 8,507 8,482 8,288 Financial instruments 210 650 314 Total property, plant and equipment, net and Other assets $ 8,717 $ 9,132 $ 8,602 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Other Employee Benefit Costs | Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2021, 2020 and 2019: (in millions) 2021 2020 2019 Net pension costs (income) $ (1) $ (14) $ (18) Net postemployment costs 108 103 100 Net postretirement costs 8 8 7 Total pension and other employee benefit costs $ 115 $ 97 $ 89 |
Change in Benefit Obligations | The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation and net amount accrued for PMI's postretirement health care plans, at December 31, 2021 and 2020, were as follows: Pension (1) Postretirement (in millions) 2021 2020 2021 2020 Benefit obligation at January 1 $ 12,243 $ 10,612 $ 198 $ 190 Service cost 291 268 2 2 Interest cost 50 68 5 6 Benefits paid (417) (356) (8) (7) Employee contributions 145 130 — — Settlement, curtailment and plan amendment (194) (117) Actuarial losses (gains) (559) 653 5 5 Currency (587) 992 (4) 3 Other 26 (7) — (1) Benefit obligation at December 31, 10,998 12,243 198 198 Fair value of plan assets at January 1, 8,746 7,928 Actual return on plan assets 1,054 206 Employer contributions 269 102 Employee contributions 145 130 Benefits paid (417) (356) Settlement (37) (16) Currency (444) 752 Other 21 — Fair value of plan assets at December 31, 9,337 8,746 Net pension and postretirement liability recognized at December 31, $ (1,661) $ (3,497) $ (198) $ (198) (1) Primarily non-U.S. based defined benefit retirement plans. |
Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheets | At December 31, 2021 and 2020, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2021 2020 2021 2020 Other assets $ 323 $ 43 Accrued liabilities — employment costs (24) (26) $ (9) $ (8) Long-term employment costs (1,960) (3,514) (189) (190) $ (1,661) $ (3,497) $ (198) $ (198) |
Schedule of Assumptions Used | The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2021 2020 2021 2020 Discount rate 0.86 % 0.56 % 3.08 % 2.84 % Rate of compensation increase 1.77 1.79 Interest crediting rate 3.15 3.20 Health care cost trend rate assumed for next year 6.27 6.21 Ultimate trend rate 4.80 4.73 Year that rate reaches the ultimate trend rate 2029 2029 The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2021 2020 2019 2021 2020 2019 Discount rate - service cost 0.72 % 1.25 % 2.14 % 2.84 % 3.28 % 3.97 % Discount rate - interest cost 0.44 0.67 1.35 2.84 3.28 3.97 Expected rate of return on plan assets 4.43 4.59 4.70 Rate of compensation increase 1.79 1.82 1.86 Interest crediting rate 3.20 3.20 3.40 Health care cost trend rate 6.21 6.21 6.17 |
Components of Net Periodic Benefit Cost | Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2021, 2020 and 2019: Pension Postretirement (in millions) 2021 2020 2019 2021 2020 2019 Service cost $ 291 $ 268 $ 214 $ 2 $ 2 $ 2 Interest cost 50 68 118 5 6 7 Expected return on plan assets (371) (353) (328) — — — Amortization: Net losses 314 265 189 3 2 — Prior service cost 1 1 (1) — — — Net transition obligation — 1 — — — — Settlement and curtailment 5 4 4 — — — Net periodic pension and postretirement costs $ 290 $ 254 $ 196 $ 10 $ 10 $ 9 |
Fair Value of Pension Plan Assets | The fair value of PMI’s pension plan assets at December 31, 2021 and 2020, by asset category was as follows: Asset Category At December 31, 2021 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 355 $ 355 Equity securities: U.S. securities 193 193 International securities 658 658 Investment funds (a) 7,317 5,592 $ 1,725 International government bonds 210 139 71 Corporate bonds 278 278 Other 4 3 1 Total assets in the fair value hierarchy $ 9,015 $ 7,218 $ 1,797 $ — Investment funds measured at net asset value (b) 322 Total assets $ 9,337 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 59% are invested in U.S. and international equities; 15% are invested in U.S. and international government bonds; 14% are invested in corporate bonds and 12% are invested in real estate. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Asset Category At December 31, 2020 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 324 $ 324 Equity securities: U.S. securities 175 175 International securities 605 605 Investment funds (a) 6,811 5,206 $ 1,605 International government bonds 225 149 76 Corporate bonds 292 292 Other 7 7 Total assets in the fair value hierarchy $ 8,439 $ 6,758 $ 1,681 $ — Investment funds measured at net asset value (b) 307 Total assets $ 8,746 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 63% were invested in U.S. and international equities; 16% were invested in U.S. and international government bonds; 12% were invested in real estate, and 9% were invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Estimated Future Benefit Payments | The estimated future benefit payments from PMI pension plans at December 31, 2021, are as follows: (in millions) 2022 $ 407 2023 421 2024 386 2025 382 2026 400 2027 - 2031 2,193 |
Amounts Recorded in Accumulated Other Comprehensive Losses | The amounts recorded in accumulated other comprehensive losses at December 31, 2021, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (2,495) $ (64) $ (884) $ (3,443) Prior service cost 71 1 (22) 50 Net transition obligation (3) — — (3) Deferred income taxes 278 24 214 516 Losses to be amortized $ (2,149) $ (39) $ (692) $ (2,880) The amounts recorded in accumulated other comprehensive losses at December 31, 2020, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (4,147) $ (64) $ (839) $ (5,050) Prior service cost 22 2 (22) 2 Net transition obligation (3) — — (3) Deferred income taxes 570 24 204 798 Losses to be amortized $ (3,558) $ (38) $ (657) $ (4,253) The amounts recorded in accumulated other comprehensive losses at December 31, 2019, consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,718) $ (63) $ (775) $ (4,556) Prior service cost 3 2 — 5 Net transition obligation (4) — — (4) Deferred income taxes 520 24 182 726 Losses to be amortized $ (3,199) $ (37) $ (593) $ (3,829) |
Movements in Other Comprehensive Earnings (Losses) | The movements in other comprehensive earnings (losses) during the year ended December 31, 2021, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 294 $ 4 $ 85 $ 383 Prior service cost 7 (1) — 6 Net transition obligation — — — — Other income/expense: Net losses 5 1 — 6 Prior service cost — — — — Deferred income taxes (51) (1) (20) (72) 255 3 65 323 Other movements during the year: Net losses 1,353 (5) (130) 1,218 Prior service cost 42 — — 42 Deferred income taxes (241) 1 30 (210) 1,154 (4) (100) 1,050 Total movements in other comprehensive earnings (losses) $ 1,409 $ (1) $ (35) $ 1,373 The movements in other comprehensive earnings (losses) during the year ended December 31, 2020, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 250 $ 3 $ 78 $ 331 Prior service cost 29 — — 29 Net transition obligation 1 — — 1 Other income/expense: Net losses 3 — — 3 Prior service cost 2 — — 2 Deferred income taxes (49) (1) (17) (67) 236 2 61 299 Other movements during the year: Net losses (682) (4) (142) (828) Prior service cost (12) — (22) (34) Deferred income taxes 99 1 39 139 (595) (3) (125) (723) Total movements in other comprehensive earnings (losses) $ (359) $ (1) $ (64) $ (424) The movements in other comprehensive earnings (losses) during the year ended December 31, 2019, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses $ 198 $ 3 $ 77 $ 278 Prior service cost 32 (1) — 31 Other income/expense: Net losses 3 — — 3 Deferred income taxes (51) (1) (17) (69) 182 1 60 243 Other movements during the year: Net losses (521) (27) (150) (698) Prior service cost (2) — — (2) Deconsolidation of RBH (net of deferred income taxes) 26 1 — 27 Deferred income taxes 206 6 35 247 (291) (20) (115) (426) Total movements in other comprehensive earnings (losses) $ (109) $ (19) $ (55) $ (183) |
Additional Information (Tables)
Additional Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Additional Information [Abstract] | |
Schedule of Additional Information | For the Years Ended December 31, (in millions) 2021 2020 2019 Research and development expense $ 617 $ 495 $ 465 Advertising expense $ 807 $ 637 $ 730 Foreign currency net transaction (gains)/losses $ 45 $ 90 $ (95) Interest expense $ 737 $ 728 $ 796 Interest income (109) (110) (226) Interest expense, net $ 628 $ 618 $ 570 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Contracts | The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2021 and 2020, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2021 2020 Balance Sheet Classification 2021 2020 Derivative contracts designated as hedging instruments Other current assets $ 173 $ 130 Other accrued liabilities $ 34 $ 241 Other assets 22 6 Income taxes and other liabilities 190 605 Derivative contracts not designated as hedging instruments Other current assets 37 46 Other accrued liabilities 75 207 Other assets — — Income taxes and other liabilities — 57 Total gross amount derivatives contracts presented in the consolidated balance sheets $ 232 $ 182 $ 299 $ 1,110 Gross amounts not offset in the consolidated balance sheets Financial instruments (126) (156) (126) (156) Cash collateral received/pledged (93) (23) (151) (892) Net amount $ 13 $ 3 $ 22 $ 62 |
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings | For the years ended December 31, 2021, 2020 and 2019, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Years Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2021 2020 2019 2021 2020 2019 2021 2020 2019 Derivative contracts designated as hedging instruments: Cash flow hedges $ 144 $ (81) $ (20) Net revenues $ 59 $ (3) $ 22 Cost of sales — 7 1 Marketing, administration and research costs (10) 27 2 Interest expense, net (7) (11) (8) Fair value hedges Interest expense, net $ 1 $ — $ — Net investment hedges (a) 484 (514) 369 Interest expense, net (b) 150 194 230 Derivative contracts not designated as hedging instruments Interest expense, net 55 71 94 Marketing, administration and research costs (c) 215 (368) (115) Total $ 628 $ (595) $ 349 $ 42 $ 20 $ 17 $ 421 $ (103) $ 209 (a) Amount of gains (losses) on hedges of net investments principally related to changes in exchange and interest rates between the Euro and U.S. dollar (b) Represent the gains for amounts excluded from the effectiveness testing (c) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates substantially offset the (losses) and gains generated by the underlying intercompany and third-party loans being hedged |
Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes | Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: For the Years Ended December 31, (in millions) 2021 2020 2019 Gain/(loss) as of January 1, $ (85) $ 3 $ 35 Derivative (gains)/losses transferred to earnings (35) (20) (14) Change in fair value 124 (68) (18) Gain/(loss) as of December 31, $ 4 $ (85) $ 3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Losses, Net of Taxes | PMI's accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At December 31, (in millions) 2021 2020 2019 Currency translation adjustments $ (6,701) $ (6,843) $ (5,537) Pension and other benefits (2,880) (4,253) (3,829) Derivatives accounted for as hedges 4 (85) 3 Total accumulated other comprehensive losses $ (9,577) $ (11,181) $ (9,363) |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021, December 31, 2020 and December 31, 2019:¹ Type of Case Number of Cases Pending as of December 31, 2021 Number of Cases Pending as of December 31, 2020 Number of Cases Pending as of December 31, 2019 Individual Smoking and Health Cases 40 43 50 Smoking and Health Class Actions 9 9 10 Health Care Cost Recovery Actions 17 17 17 Label-Related Class Actions — — — Individual Label-Related Cases 3 5 5 Public Civil Actions 1 2 2 |
Schedule of Verdicts and Post Trial Developments | 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: Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $12.1 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.4 billion)). The trial court awarded CAD 90,000 (approximately $70,500) in punitive damages, allocating CAD 30,000 (approximately $23,500) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $783 million) of the compensatory damage award, CAD 200 million (approximately $157 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 $103 million) in punitive damages, allocating CAD 46 million (approximately $36 million) to RBH. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “ Stayed Litigation — Canada ” for further detail.) Date Location of Type of Verdict Post-Trial August 5, 2016 Argentina/Hugo Lespada Individual Action On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $1,044), 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 May 17, 2021 plaintiff filed a federal extraordinary appeal. On November 1, 2021, the Supreme Court of the Province of Buenos Aires dismissed plaintiff's federal extraordinary appeal. On November 10, 2021, plaintiff filed a direct appeal before the Federal Supreme Court. 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 $1,423), in compensatory and moral damages, and ARS 4,000,000 (approximately $37,958) 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 deposited the damages awarded, plus interest and costs, in total ARS 6,114,428 (approximately $58,024), into a court escrow account. Our subsidiary challenged the amount determined by the court. The Mar del Plata Court of Appeals granted our subsidiary's challenge to the escrow amount determined by the trial court. As a result, on December 16, 2021, ARS 893,428 (approximately $8,478) was returned to our subsidiary. If our subsidiary ultimately prevails on appeal, the remaining deposited amounts will be returned to our subsidiary. |
Asset Impairment and Exit Cos_2
Asset Impairment and Exit Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs by Segment | During 2021, 2020 and 2019, PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) 2021 2020 2019 Separation programs: (1) European Union $ 68 $ 53 $ 251 Eastern Europe 14 14 — Middle East & Africa 17 18 — South & Southeast Asia 21 22 3 East Asia & Australia 31 25 — Americas 8 9 49 Total separation programs 159 141 303 Contract termination charges: East Asia & Australia 57 — — Total contract termination charges 57 — — Asset impairment charges (1) European Union — 4 91 Eastern Europe — 1 — Middle East & Africa — 1 — South & Southeast Asia — 1 17 East Asia & Australia — 1 — Americas — — 11 Total asset impairment charges — 8 119 Asset impairment and exit costs $ 216 149 422 (1) Organizational design optimization pre-tax charges in 2021 and 2020 were allocated across all geographical segments. |
Movement in Exit Cost Liabilities | The movement in exit cost liabilities for the year ended December 31, 2021 was as follows: (in millions) Liability balance, January 1, 2021 $ 180 Charges, net 216 Cash spent (238) Currency/other (16) Liability balance, December 31, 2021 $ 142 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating and Finance Lease Assets and Liabilities | PMI’s operating and finance leases at December 31, 2021 and 2020, were as follows: At December 31, (in millions) 2021 2020 Operating Leases Finance Leases Operating Leases Finance Leases Assets: Machinery and equipment $ — $ 108 $ — $ 12 Other assets 526 — 697 64 Total lease assets $ 526 $ 108 $ 697 $ 76 Liabilities: Current Current portion of long-term debt $ — $ 48 $ — $ 13 Accrued liabilities - Other 192 — 190 — Noncurrent Long-term debt — 23 — 24 Income taxes and other liabilities 344 — 517 — Total lease liabilities $ 536 $ 71 $ 707 $ 37 |
Lease Cost Components | The components of PMI’s lease cost were as follows for the years ended December 31, 2021, 2020 and 2019: For the Years Ended December 31, (in millions) 2021 2020 2019 Operating lease cost $ 259 $ 237 $ 242 Finance lease cost: Amortization of right-of-use assets 54 31 18 Interest on lease liabilities 1 1 1 Short-term lease cost 55 49 61 Variable lease cost 25 31 29 Total lease cost $ 394 $ 349 $ 351 |
Operating and Finance Lease Liability Maturity | Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2021, were as follows: (in millions) Operating Leases Finance Leases 2022 $ 215 $ 49 2023 131 18 2024 84 2 2025 54 1 2026 24 1 Thereafter 140 1 Total lease payments 648 72 Less: Interest 112 1 Present value of lease liabilities $ 536 $ 71 |
Other Lease Information | Other information related to PMI’s leases was as follows for the year ended December 31, 2021, 2020 and 2019: December 31, (in millions) 2021 2020 2019 Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1) $ 259 $ — $ 238 $ — $ 240 $ — Cash paid for amounts included in the measurement of lease liabilities in financing cash flows $ — $ 26 $ — $ 19 $ — $ 15 Leased assets obtained in exchange for new lease liabilities $ 64 $ 89 $ 149 $ 32 $ 221 $ 38 Weighted-average remaining lease term (years) 8.3 1.7 10.1 1.6 9.6 2.4 Weighted-average discount rate (2) (3) 3.6 % 5.3 % 4.3 % 6.7 % 4.4 % 7.1 % (1) Cash paid included in the operating cash flows of finance leases is not material. (2) PMI’s weighted-average discount rate for operating leases is based on its estimated pre-tax cost of debt adjusted for country-specific risk. (3) PMI’s weighted-average discount rate for finance leases, excluding embedded leases, is based on its estimated pre-tax cost of debt adjusted for country-specific risk and where applicable the interest rate explicit to lease contracts. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Machinery and Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 3 years |
Maximum | Machinery and Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 15 years |
Maximum | Building and Building Improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 40 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net (Movement in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 5,964 | $ 5,858 |
Changes due to: | ||
Currency | (282) | 106 |
Acquisitions | 998 | |
Ending Balance | 6,680 | 5,964 |
European Union | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,434 | 1,338 |
Changes due to: | ||
Currency | (91) | 96 |
Acquisitions | 30 | |
Ending Balance | 1,373 | 1,434 |
Eastern Europe | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 317 | 300 |
Changes due to: | ||
Currency | (22) | 17 |
Acquisitions | 0 | |
Ending Balance | 295 | 317 |
Middle East & Africa | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 86 | 89 |
Changes due to: | ||
Currency | (7) | (3) |
Acquisitions | 0 | |
Ending Balance | 79 | 86 |
South & Southeast Asia | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,915 | 2,898 |
Changes due to: | ||
Currency | (87) | 17 |
Acquisitions | 0 | |
Ending Balance | 2,828 | 2,915 |
East Asia & Australia | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 559 | 551 |
Changes due to: | ||
Currency | (20) | 8 |
Acquisitions | 0 | |
Ending Balance | 539 | 559 |
Americas | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 653 | 682 |
Changes due to: | ||
Currency | (42) | (29) |
Acquisitions | 0 | |
Ending Balance | 611 | 653 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Changes due to: | ||
Currency | (13) | 0 |
Acquisitions | 968 | |
Ending Balance | $ 955 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 1,312 | $ 1,289 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Accumulated Amortization | 792 | 722 |
Total other intangible assets, gross | 3,610 | 2,741 |
Total other intangible assets, net | $ 2,818 | 2,019 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 12 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 1,201 | 1,233 |
Amortizable intangible assets, Accumulated Amortization | 639 | 594 |
Amortizable intangible assets, Net | $ 562 | 639 |
Developed technology, including patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 12 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 859 | 93 |
Amortizable intangible assets, Accumulated Amortization | 63 | 41 |
Amortizable intangible assets, Net | $ 796 | 52 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 12 years | |
Amortizable intangible assets, Gross Carrying Amount | $ 238 | 126 |
Amortizable intangible assets, Accumulated Amortization | 90 | 87 |
Amortizable intangible assets, Net | $ 148 | $ 39 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
IPR&D acquired | $ 53,000,000 | |||
Non-amortizable intangible assets, currency movements | (30,000,000) | |||
Increase from finite lived intangibles acquired | 917,000,000 | |||
Finite-lived intangible assets, currency movements | (71,000,000) | |||
Amortization of intangibles | 96,000,000 | $ 73,000,000 | $ 66,000,000 | |
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | 152,000,000 | |||
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 152,000,000 | |||
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 152,000,000 | |||
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 152,000,000 | |||
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | 152,000,000 | |||
Goodwill and non-amortizable intangible asset impairment | $ 0 | |||
Trademarks and Distribution Networks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 96,000,000 | |||
Change in accumulated amortization, currency movements | $ 26,000,000 |
Related Parties - Equity Inve_3
Related Parties - Equity Investments and Other (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 22, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity investments | $ 879 | $ 966 | |
Difference between equity method investment carrying value and book value | 764 | 773 | |
Dividends received | 176 | 79 | |
Other equity securities, unrealized pre-tax gain (loss) | 19 | (76) | |
Other equity securities, unrealized gain (loss), net of tax | 15 | (60) | |
Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Fair Value | |||
Schedule of Equity Method Investments [Line Items] | |||
Fair value of equity securities | $ 283 | 256 | |
PMM | TTI | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling ownership interest (as a percent) | 33.00% | ||
STAEM | EITA | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 51.00% | ||
STAEM | Management Et Developpement Des Actifs Et Des Ressources Holding (MADAR Holding) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 49.00% | ||
IPM India | |||
Schedule of Equity Method Investments [Line Items] | |||
Parent ownership interest (as a percent) | 56.30% | ||
Equity Method Investment Goodwill | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 728 | $ 745 | |
Megapolis | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 23.00% | ||
EITA | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 49.00% | ||
STAEM | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest (as a percent) | 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Net revenues | $ 3,330 | $ 3,233 | $ 3,251 |
Expenses | 69 | 51 | 63 |
Receivables | 518 | 365 | |
Payables | 25 | 13 | |
Megapolis | |||
Schedule of Equity Method Investments [Line Items] | |||
Net revenues | 2,207 | 2,174 | 2,236 |
Receivables | 319 | 209 | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Net revenues | 1,123 | 1,059 | 1,015 |
Expenses | 69 | 51 | $ 63 |
Receivables | 199 | 156 | |
Payables | $ 25 | $ 13 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | ||
Standard product warranty term | 12 months | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 137 | $ 140 |
Changes due to: | ||
Warranties issued | 154 | 242 |
Settlements | (177) | (254) |
Currency/Other | (1) | 9 |
Balance at end of period | $ 113 | $ 137 |
Acquisitions (Details)
Acquisitions (Details) £ / shares in Units, $ in Millions, £ in Billions, kr in Billions | Sep. 15, 2021USD ($) | Sep. 15, 2021DKK (kr) | Sep. 15, 2021GBP (£) | Aug. 09, 2021USD ($) | May 06, 2021USD ($) | Dec. 31, 2021USD ($) | Sep. 15, 2021£ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 6,680 | $ 5,964 | $ 5,858 | ||||||
OtiTopic Inc Asset Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Asset acquisition, percentage of shares acquired | 100.00% | ||||||||
Asset acquisition, consideration transferred | $ 38 | ||||||||
Asset acquisition, contingent payment | 13 | ||||||||
Asset acquisition, future additional contingent payments | 25 | ||||||||
Pre-tax charge associated with asset acquisition | $ 51 | ||||||||
Preliminary purchase price allocation associated with business combinations | |||||||||
Business Acquisition [Line Items] | |||||||||
Interest acquired (as a percent) | 100.00% | ||||||||
Cash payment for business, net of cash acquired | $ 28 | ||||||||
Contingent consideration | $ 10 | ||||||||
Contingent payment target period | 2 years | ||||||||
Fertin Pharma | |||||||||
Business Acquisition [Line Items] | |||||||||
Interest acquired (as a percent) | 100.00% | ||||||||
Net purchase price | $ 821 | kr 5.2 | |||||||
Cash payment for business combination | 821 | ||||||||
Cash | 24 | ||||||||
Current assets | 69 | ||||||||
Noncurrent assets | 228 | ||||||||
Goodwill | 378 | ||||||||
Other intangible assets | 245 | ||||||||
Current liabilities | 44 | ||||||||
Increase (decrease) in goodwill | 41 | ||||||||
Increase (decrease) in other intangible assets | (82) | ||||||||
Decrease in deferred tax liabilities | 21 | ||||||||
Increase in property plant and equipment | 19 | ||||||||
Noncurrent liabilities | 79 | ||||||||
Fertin Pharma | Cash Consideration | |||||||||
Business Acquisition [Line Items] | |||||||||
Net purchase price | 580 | ||||||||
Fertin Pharma | Consideration For Payment To Settle Indebtedness | |||||||||
Business Acquisition [Line Items] | |||||||||
Net purchase price | $ 241 | ||||||||
Fertin Pharma | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired intangible assets, estimated useful life | 8 years | 8 years | 8 years | ||||||
Fertin Pharma | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired intangible assets, estimated useful life | 19 years | 19 years | 19 years | ||||||
Vectura | |||||||||
Business Acquisition [Line Items] | |||||||||
Interest acquired (as a percent) | 74.77% | ||||||||
Net purchase price | $ 1,384 | £ 1 | |||||||
Cash | 136 | ||||||||
Current assets | 89 | ||||||||
Noncurrent assets | 67 | ||||||||
Goodwill | 590 | ||||||||
Other intangible assets | 719 | ||||||||
Current liabilities | 100 | ||||||||
Increase (decrease) in goodwill | (115) | ||||||||
Increase (decrease) in other intangible assets | 73 | ||||||||
Decrease in deferred tax liabilities | $ 22 | ||||||||
Business acquisition, share price (in dollars per share) | £ / shares | £ 165 | ||||||||
Ownership percentage | 100.00% | ||||||||
Noncurrent liabilities | $ 117 | ||||||||
Vectura | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired intangible assets, estimated useful life | 3 years | 3 years | 3 years | ||||||
Vectura | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired intangible assets, estimated useful life | 15 years | 15 years | 15 years |
Indebtedness (Short-Term Borrow
Indebtedness (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 225 | $ 244 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 0 | $ 0 |
Average Year-End Rate | 0.00% | 0.00% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 225 | $ 244 |
Average Year-End Rate | 12.00% | 5.30% |
Indebtedness (Long-Term Debt) (
Indebtedness (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 27,581 | $ 31,292 |
Less current portion of long-term debt | 2,798 | 3,124 |
Long-term debt | 24,783 | 28,168 |
Finance leases | $ 71 | 37 |
US Dollar Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.245% | |
Total long-term debt | $ 19,397 | 21,221 |
Foreign Currency Obligations | Euro Notes Payable | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.995% | |
Total long-term debt | $ 7,687 | 9,253 |
Foreign Currency Obligations | Swiss Franc Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 1.625% | |
Total long-term debt | $ 273 | 622 |
Foreign Currency Obligations | Other | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.329% | |
Total long-term debt | $ 224 | $ 196 |
Minimum | US Dollar Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 0.875% | |
Minimum | Foreign Currency Obligations | Euro Notes Payable | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 0.125% | |
Maximum | US Dollar Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 6.375% | |
Maximum | Foreign Currency Obligations | Euro Notes Payable | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 3.125% |
Indebtedness (Fair Value of Out
Indebtedness (Fair Value of Outstanding Long-Term Debt, Excluding Finance Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of outstanding long-term debt, excluding finance leases | $ 29,597 | $ 35,227 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of outstanding long-term debt, excluding finance leases | $ 165 | $ 177 |
Indebtedness (Debt Issuances Ou
Indebtedness (Debt Issuances Outstanding) (Details) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021CHF (SFr) |
US Dollar Notes | 2.625% US Dollar Notes Due February 2022 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 2.625% | 2.625% | 2.625% |
US Dollar Notes | 2.375% US Dollar Notes Due August 2022 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.375% | 2.375% | 2.375% |
US Dollar Notes | 2.500% US Dollar Notes Due August 2022 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.50% | 2.50% | 2.50% |
US Dollar Notes | 2.500% US Dollar Notes Due November 2022 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.50% | 2.50% | 2.50% |
US Dollar Notes | 2.625% US Dollar Notes Due March 2023 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 600,000,000 | ||
Interest Rate | 2.625% | 2.625% | 2.625% |
US Dollar Notes | 2.125% US Dollar Notes Due May 2023 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 2.125% | 2.125% | 2.125% |
US Dollar Notes | 1.125% US Dollar Notes Due May 2023 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.125% | 1.125% | 1.125% |
US Dollar Notes | 3.600% US Dollar Notes Due November 2023 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.60% | 3.60% | 3.60% |
US Dollar Notes | 2.875% US Dollar Notes Due May 2024 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 900,000,000 | ||
Interest Rate | 2.875% | 2.875% | 2.875% |
US Dollar Notes | 3.250% US Dollar Notes Due November 2024 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.25% | 3.25% | 3.25% |
US Dollar Notes | 1.500% US Dollar Notes Due May 2025 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.50% | 1.50% | 1.50% |
US Dollar Notes | 3.375% US Dollar Notes Due August 2025 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.375% | 3.375% | 3.375% |
US Dollar Notes | 2.750% US Dollar Notes Due February 2026 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.75% | 2.75% | 2.75% |
US Dollar Notes | 0.875% US Dollar Notes Due May 2026 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 0.875% | 0.875% | 0.875% |
US Dollar Notes | 3.125% US Dollar Notes Due August 2027 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.125% | 3.125% | 3.125% |
US Dollar Notes | 3.125% US Dollar Notes Due March 2028 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.125% | 3.125% | 3.125% |
US Dollar Notes | 3.375% US Dollar Notes Due August 2029 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.375% | 3.375% | 3.375% |
US Dollar Notes | 2.100% US Dollar Notes Due May 2030 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.10% | 2.10% | 2.10% |
US Dollar Notes | 1.750% US Dollar Notes Due November 2030 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.75% | 1.75% | 1.75% |
US Dollar Notes | 6.375% US Dollar Notes Due May 2038 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,500,000,000 | ||
Interest Rate | 6.375% | 6.375% | 6.375% |
US Dollar Notes | 4.375% US Dollar Notes Due November 2041 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.375% | 4.375% | 4.375% |
US Dollar Notes | 4.500% US Dollar Notes Due March 2042 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 700,000,000 | ||
Interest Rate | 4.50% | 4.50% | 4.50% |
US Dollar Notes | 3.875% US Dollar Notes Due August 2042 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.875% | 3.875% | 3.875% |
US Dollar Notes | 4.125% US Dollar Notes Due March 2043 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 850,000,000 | ||
Interest Rate | 4.125% | 4.125% | 4.125% |
US Dollar Notes | 4.875% US Dollar Notes Due November 2043 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.875% | 4.875% | 4.875% |
US Dollar Notes | 4.250% US Dollar Notes Due November 2044 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.25% | 4.25% | 4.25% |
US Dollar Notes | 4.250% US Dollar Notes Due November 2044 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 4.25% | 4.25% | 4.25% |
Foreign Currency Obligations | 2.875% Euro Notes Due May 2024 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 761,000,000 | € 600,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations | 0.625% Euro Notes Due November 2024 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 582,000,000 | € 500,000,000 | |
Interest Rate | 0.625% | 0.625% | 0.625% |
Foreign Currency Obligations | 2.750% Euro Notes Due March 2025 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 972,000,000 | € 750,000,000 | |
Interest Rate | 2.75% | 2.75% | 2.75% |
Foreign Currency Obligations | 2.875% Euro Notes Due March 2026 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,372,000,000 | € 1,000,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations | 0.125% Euro Notes Due August 2026 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 557,000,000 | € 500,000,000 | |
Interest Rate | 0.125% | 0.125% | 0.125% |
Foreign Currency Obligations | 2.875% Euro Notes Due May 2029 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 697,000,000 | € 500,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations | 0.800% Euro Notes Due August 2031 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 835,000,000 | € 750,000,000 | |
Interest Rate | 0.80% | 0.80% | 0.80% |
Foreign Currency Obligations | 3.125% Euro Notes Due June 2033 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 648,000,000 | € 500,000,000 | |
Interest Rate | 3.125% | 3.125% | 3.125% |
Foreign Currency Obligations | 2.000% Euro Notes Due May 2036 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 578,000,000 | € 500,000,000 | |
Interest Rate | 2.00% | 2.00% | 2.00% |
Foreign Currency Obligations | 1.875% Euro Notes Due November 2037 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 582,000,000 | € 500,000,000 | |
Interest Rate | 1.875% | 1.875% | 1.875% |
Foreign Currency Obligations | 1.450% Euro Notes Due August 2039 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 835,000,000 | € 750,000,000 | |
Interest Rate | 1.45% | 1.45% | 1.45% |
Foreign Currency Obligations | 1.625% Swiss Franc Notes Due May 2024 | |||
Debt Instrument [Line Items] | |||
Face Value | $ 283,000,000 | SFr 250,000,000 | |
Interest Rate | 1.625% | 1.625% | 1.625% |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | Jan. 28, 2022 | Jan. 18, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Indebtedness [Line Items] | ||||
Borrowings under committed credit facilities | $ 0 | |||
Committed credit facilities, maximum borrowing capacity | 6,300,000,000 | |||
Borrowings from committed credit facilities and other bank loans | 225,000,000 | $ 244,000,000 | ||
Bank loans | ||||
Indebtedness [Line Items] | ||||
Borrowings from committed credit facilities and other bank loans | 225,000,000 | 244,000,000 | ||
Subsidiaries | Bank loans | ||||
Indebtedness [Line Items] | ||||
Borrowings from committed credit facilities and other bank loans | 225,000,000 | 244,000,000 | ||
Short-Term Credit Arrangement | Subsidiaries | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,300,000,000 | $ 2,700,000,000 | ||
2.625% US Dollar Notes Due February 2022 | US Dollar Notes | ||||
Indebtedness [Line Items] | ||||
Interest rate, stated rate (as a percent) | 2.625% | |||
Long-term debt outstanding | $ 500,000,000 | |||
2.625% US Dollar Notes Due February 2022 | Subsequent Event | US Dollar Notes | ||||
Indebtedness [Line Items] | ||||
Interest rate, stated rate (as a percent) | 2.625% | |||
364-day revolving credit, expiring February 1, 2022 | Subsequent Event | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 1,800,000,000 | |||
Debt term | 364 days | |||
Multi-year revolving credit, expiring February 10, 2026 | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,000,000,000 | |||
Multi-year revolving credit, expiring February 10, 2026 | Subsequent Event | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,000,000,000 | |||
Revolving Credit Facility Expiring February 2027 | Subsequent Event | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 1,900,000,000 |
Indebtedness (Aggregate Maturit
Indebtedness (Aggregate Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 2,798 | |
2023 | 2,371 | |
2024 | 3,318 | |
2025 | 2,351 | |
2026 | 3,199 | |
2027-2031 | 4,666 | |
2032-2036 | 1,132 | |
Thereafter | 7,965 | |
Long-term debt, gross | 27,800 | |
Debt discounts | (219) | |
Total long-term debt | $ 27,581 | $ 31,292 |
Indebtedness (Credit Facilities
Indebtedness (Credit Facilities) (Details) | Dec. 31, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | $ 6,300,000,000 |
364-day revolving credit, expiring February 1, 2022 | |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | 1,800,000,000 |
Multi-year revolving credit, expiring February 10, 2026 | |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | 2,000,000,000 |
Multi-year revolving credit, expiring September 29, 2026 | |
Line of Credit Facility [Line Items] | |
Committed Credit Facilities | $ 2,500,000,000 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) | Jun. 11, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 11, 2024 |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 6,000,000,000 | 6,000,000,000 | ||||
Stock repurchase program, authorized amount | $ 7,000,000,000 | |||||
Repurchases of common stock | $ 775,000,000 | $ 0 | $ 0 | |||
Stock repurchase program, period | 3 years | |||||
Common stock repurchased (in shares) | 8,500,000 | |||||
Common stock repurchased, at cost | $ 785,000,000 | $ 785,000,000 | ||||
Shares of common stock reserved (in shares) | 23,461,358 | 23,461,358 | ||||
Preferred stock shares authorized (in shares) | 250,000,000 | 250,000,000 | ||||
Minimum | Forecast [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchases of common stock | $ 5,000,000,000 | |||||
Maximum | Forecast [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchases of common stock | $ 7,000,000,000 |
Capital Stock (Schedule of Comm
Capital Stock (Schedule of Common Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | ||
Shares repurchased, beginning of period (in shares) | (551,942,600) | ||
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | |
Shares repurchased, end of period (in shares) | (559,146,338) | (551,942,600) | |
Shares Issued | |||
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares Repurchased | |||
Capital Stock [Roll Forward] | |||
Shares repurchased, beginning of period (in shares) | (551,942,600) | (553,421,668) | (554,736,610) |
Issuance of stock awards (in shares) | 1,310,891 | 1,479,068 | 1,314,942 |
Repurchase of shares (in shares) | (8,514,629) | ||
Shares repurchased, end of period (in shares) | (559,146,338) | (551,942,600) | (553,421,668) |
Shares Outstanding | |||
Capital Stock [Roll Forward] | |||
Shares outstanding, beginning of period (in shares) | 1,557,373,731 | 1,555,894,663 | 1,554,579,721 |
Issuance of stock awards (in shares) | 1,310,891 | 1,479,068 | 1,314,942 |
Repurchase of shares (in shares) | (8,514,629) | ||
Shares outstanding, end of period (in shares) | 1,550,169,993 | 1,557,373,731 | 1,555,894,663 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)yearperformanceMetricshares | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2017shares | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200.00% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 144 | |||
Weighted-average recognition period | 17 months | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 48 | |||
Weighted-average recognition period | 17 months | |||
Performance period | 3 years | |||
Absolute basis | 40.00% | 40.00% | 50.00% | |
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% | 20.00% | |
Currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions | 30.00% | |||
Number of performance metrics used to determine the percentage of PSU's that will vest | performanceMetric | 3 | |||
Aggregate weighted performance factor that determines if the target number of PSU's will vest | 100.00% | |||
Number of shares of common stock issued for each vested PSU | 1 | |||
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) | 14,832,141 | |||
2017 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 (Activity for Restr
Stock Plans (Activity for Restricted Share Unit Awards) (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares (in shares): | |||
Beginning balance (in shares) | 4,098,240 | ||
Granted (in shares) | 2,020,860 | ||
Vested (in shares) | (1,256,441) | (1,206,871) | (1,126,057) |
Forfeited (in shares) | (221,895) | ||
Ending balance (in shares) | 4,640,764 | 4,098,240 | |
Weighted-Average Grant Date Fair Value: | |||
Beginning balance (in dollars per share) | $ 86.21 | ||
Granted (in dollars per share) | 82.17 | $ 85.79 | $ 77.28 |
Vested (in dollars per share) | 96.01 | ||
Forfeited (in dollars per share) | 82.97 | ||
Ending balance (in dollars per share) | $ 81.96 | $ 86.21 | |
Weighted-average grant date fair value | $ 166 | $ 148 | $ 133 |
Compensation expense for share-based awards | 139 | 129 | 118 |
Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | 121 | 117 | 101 |
Fair Value | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | $ 111 | $ 102 | $ 95 |
Stock Plans (Activity for Perfo
Stock Plans (Activity for Performance Share Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance Shares | |||
Number of Shares (in shares): | |||
Beginning balance (in shares) | 1,472,800 | ||
Granted (in shares) | 574,410 | ||
Vested (in shares) | (189,839) | (343,806) | (330,616) |
Forfeited (in shares) | (320,351) | ||
Ending balance (in shares) | 1,537,020 | 1,472,800 | |
Weighted-Average Grant Date Fair Value: | |||
Compensation expense for share-based awards | $ 71 | $ 38 | $ 54 |
Performance Share Units, Other Performance Factors | |||
Weighted-Average Grant Date Fair Value: | |||
Beginning balance (in dollars per share) | $ 86.76 | ||
Granted (in dollars per share) | 81.86 | $ 86.04 | $ 77.23 |
Vested (in dollars per share) | 100.69 | ||
Forfeited (in dollars per share) | 97.76 | ||
Ending balance (in dollars per share) | $ 82.14 | $ 86.76 | |
Weighted-average grant date fair value | $ 28 | $ 28 | $ 30 |
Performance Share Units, TSR Performance Factor | |||
Weighted-Average Grant Date Fair Value: | |||
Beginning balance (in dollars per share) | $ 90.48 | ||
Granted (in dollars per share) | 106.93 | $ 80.36 | $ 83.59 |
Vested (in dollars per share) | 118.98 | ||
Forfeited (in dollars per share) | 72.55 | ||
Ending balance (in dollars per share) | $ 96.25 | $ 90.48 | |
Weighted-average grant date fair value | $ 25 | $ 28 | $ 21 |
Grant Date Fair Value | Performance Shares | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | 21 | 35 | 32 |
Fair Value | Performance Shares | |||
Weighted-Average Grant Date Fair Value: | |||
Grant date fair value of awards vested | $ 16 | $ 30 | $ 28 |
Stock Plans (Assumptions Used)
Stock Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Risk free interest rate | 0.20% | 1.40% | 2.40% |
Expected volatility | 31.70% | 23.50% | 21.40% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net earnings attributable to PMI | $ 9,109 | $ 8,056 | $ 7,185 |
Less distributed and undistributed earnings attributable to share-based payment awards | 26 | 20 | 17 |
Net earnings for basic and diluted EPS | 9,083 | 8,036 | 7,168 |
Net earnings for basic and diluted EPS | $ 9,083 | $ 8,036 | $ 7,168 |
Weighted-average shares for basic EPS (in shares) | 1,558,000,000 | 1,557,000,000 | 1,555,000,000 |
Plus contingently issuable performance stock units (PSUs) (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Weighted-average shares for diluted EPS (in shares) | 1,559,000,000 | 1,558,000,000 | 1,556,000,000 |
Antidilutive stock options (in shares) | 0 | 0 | 0 |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes and Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Earnings before income taxes | $ 12,232 | $ 10,953 | $ 9,872 |
United States federal and state: | |||
Current | 73 | (80) | 17 |
Deferred | 27 | 53 | 24 |
Total United States | 100 | (27) | 41 |
Outside United States: | |||
Current | 2,616 | 2,600 | 2,417 |
Deferred | (45) | (196) | (165) |
Total outside United States | 2,571 | 2,404 | 2,252 |
Total provision for income taxes | $ 2,671 | $ 2,377 | $ 2,293 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions, Rp in Trillions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021USD ($) | Oct. 31, 2021IDR (Rp) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income Taxes [Line Items] | |||||
Income tax payable noncurrent | $ 900 | $ 1,100 | |||
Income tax assessment | $ 260 | Rp 3.8 | |||
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 82 | ||||
Income tax penalties and interest income (expense) recognized | $ (3) | $ (1) | $ (4) | ||
Percentage increase (decrease) in effective income tax rate | 0.10% | (1.50%) | |||
Effective income tax rate (as a percent) | 21.80% | 21.70% | 23.20% | ||
Net operating loss carryforwards | $ 408 | $ 351 | |||
Net operating loss carryforwards with unlimited period | 183 | 79 | |||
Valuation allowances | 239 | $ 250 | |||
Tax Years 2018 - 2019 | |||||
Income Taxes [Line Items] | |||||
Tax adjustments | $ 93 | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Foreign and U.S. state jurisdictions have statutes of limitations | 3 years | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Foreign and U.S. state jurisdictions have statutes of limitations | 5 years | ||||
RBH | |||||
Income Taxes [Line Items] | |||||
Tax adjustments | $ (49) |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 72 | $ 63 | $ 56 |
Additions based on tax positions related to the current year | 12 | 11 | 10 |
Additions for tax positions of previous years | 15 | 1 | 1 |
Reductions for tax positions of prior years | (1) | (4) | (2) |
Reductions due to lapse of statute of limitations | (3) | (1) | (1) |
Settlements | 0 | 0 | 0 |
Other | (6) | 2 | (1) |
Ending balance | $ 89 | $ 72 | $ 63 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 89 | $ 72 | $ 63 | $ 56 |
Accrued interest and penalties | 18 | 17 | 16 | |
Tax credits and other indirect benefits | (7) | (9) | (12) | |
Liability for tax contingencies | $ 100 | $ 80 | $ 67 |
Income Taxes (Schedule of Reaso
Income Taxes (Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate And Federal Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Increase (decrease) resulting from: | |||
Foreign rate differences | (0.30%) | 0.60% | 1.80% |
Dividend repatriation cost | 0.60% | 0.40% | (0.50%) |
Global intangible low-taxed income | 0.80% | 0.10% | 1.40% |
U.S. state taxes | 0.20% | 0.20% | 0.70% |
Foreign derived intangible income | (0.70%) | (0.60%) | (1.20%) |
Other | 0.20% | 0.00% | 0.00% |
Effective tax rate | 21.80% | 21.70% | 23.20% |
Income Taxes (Schedule of Tempo
Income Taxes (Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 234 | $ 225 |
Accrued pension costs | 392 | 720 |
Inventory | 177 | 232 |
Accrued liabilities | 168 | 182 |
Net operating loss carryforwards and tax credits | 408 | 351 |
Foreign exchange | 0 | 27 |
Other | 112 | 124 |
Total deferred income tax assets | 1,491 | 1,861 |
Less: valuation allowance | (239) | (250) |
Deferred income tax assets, net of valuation allowance | 1,252 | 1,611 |
Deferred income tax liabilities: | ||
Trade names | (591) | (374) |
Property, plant and equipment | (140) | (200) |
Unremitted earnings | (206) | (311) |
Foreign exchange | (146) | 0 |
Total deferred income tax liabilities | (1,083) | (885) |
Net deferred income tax assets | 169 | 726 |
Deferred tax charges, inventory | $ 153 | $ 209 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 6 | |||||
Net revenues | $ 31,405 | $ 28,694 | $ 29,805 | |||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 31,405 | 28,694 | 29,805 | |||
Long-lived assets | 8,507 | 8,482 | 8,288 | |||
Operating Segments | East Asia & Australia | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 5,953 | 5,429 | 5,364 | |||
Long-lived assets | 740 | 807 | 829 | |||
Operating Segments | European Union | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 12,275 | 10,702 | 9,817 | |||
Long-lived assets | 4,504 | 4,500 | 4,275 | |||
Marketing, administration and research costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Deconsolidation, gain (loss) amount | (239) | |||||
Indonesia | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Long-lived assets | 900 | 700 | 800 | |||
Eastern Europe | The Moscow Tax Inspectorate for Major Taxpayers Audit | Other Litigation | ||||||
Segment Reporting Information [Line Items] | ||||||
Amount of pre-tax charge related to alleged underpayment of excise taxes and VAT claimed by tax authority, including penalties and interest | $ 374 | |||||
Canada | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Smoking and Health Class Actions | RBH | Appellate Ruling | ||||||
Segment Reporting Information [Line Items] | ||||||
Amount of litigation charge | $ 194 | 194 | ||||
Italy | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Long-lived assets | 900 | 1,100 | 1,100 | |||
Switzerland | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Long-lived assets | 1,300 | 1,300 | 1,100 | |||
Brazil | ||||||
Segment Reporting Information [Line Items] | ||||||
Tax credit related to overpayment | $ 119 | |||||
Tax credit related to overpayment, pending amount | 90 | |||||
SAUDI ARABIA | Middle East & Africa | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | (246) | |||||
Geographic Concentration Risk | Japan | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 4,600 | $ 4,100 | $ 3,900 | |||
Customer Concentration Risk | Customer One | Net Revenues | East Asia & Australia | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk percentage | 15.00% | 14.00% | 13.00% | |||
Customer Concentration Risk | Customer One | Net Revenues | European Union | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk percentage | 13.00% | 11.00% | 10.00% |
Segment Reporting (Segment Data
Segment Reporting (Segment Data) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 31,405 | $ 28,694 | $ 29,805 |
Operating income | 12,975 | 11,668 | 10,531 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 31,405 | 28,694 | 29,805 |
Operating income | 12,975 | 11,668 | 10,531 |
Operating Segments | European Union | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 12,275 | 10,702 | 9,817 |
Operating income | 6,119 | 5,098 | 3,970 |
Operating Segments | Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,544 | 3,378 | 3,282 |
Operating income | 1,213 | 871 | 547 |
Operating Segments | Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,293 | 3,088 | 4,042 |
Operating income | 1,146 | 1,026 | 1,684 |
Operating Segments | South & Southeast Asia | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 4,396 | 4,396 | 5,094 |
Operating income | 1,506 | 1,709 | 2,163 |
Operating Segments | East Asia & Australia | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 5,953 | 5,429 | 5,364 |
Operating income | 2,556 | 2,400 | 1,932 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,843 | 1,701 | 2,206 |
Operating income | 487 | 564 | 235 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 101 | 0 | 0 |
Operating income | (52) | 0 | 0 |
Operating Segments | Combustible Products | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 22,190 | 21,867 | 24,218 |
Operating Segments | Combustible Products | European Union | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 8,211 | 8,053 | 8,093 |
Operating Segments | Combustible Products | Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,240 | 2,250 | 2,438 |
Operating Segments | Combustible Products | Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,148 | 3,031 | 3,721 |
Operating Segments | Combustible Products | South & Southeast Asia | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 4,385 | 4,395 | 5,094 |
Operating Segments | Combustible Products | East Asia & Australia | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,414 | 2,468 | 2,693 |
Operating Segments | Combustible Products | Americas | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,790 | 1,670 | 2,179 |
Operating Segments | Reduced-Risk Products | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 9,115 | 6,827 | 5,587 |
Operating Segments | Reduced-Risk Products | European Union | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 4,064 | 2,649 | 1,724 |
Operating Segments | Reduced-Risk Products | Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,304 | 1,128 | 844 |
Operating Segments | Reduced-Risk Products | Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 145 | 57 | 321 |
Operating Segments | Reduced-Risk Products | South & Southeast Asia | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 11 | 1 | 0 |
Operating Segments | Reduced-Risk Products | East Asia & Australia | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,539 | 2,961 | 2,671 |
Operating Segments | Reduced-Risk Products | Americas | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 53 | $ 31 | $ 27 |
Segment Reporting (Other Expens
Segment Reporting (Other Expenses By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 902 | $ 908 | $ 898 |
Capital expenditures | 748 | 602 | 852 |
Operating Segments | European Union | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 307 | 266 | 254 |
Capital expenditures | 470 | 384 | 466 |
Operating Segments | Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 131 | 173 | 147 |
Capital expenditures | 71 | 88 | 132 |
Operating Segments | Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 89 | 75 | 90 |
Capital expenditures | 37 | 22 | 35 |
Operating Segments | South & Southeast Asia | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 143 | 137 | 142 |
Capital expenditures | 52 | 57 | 100 |
Operating Segments | East Asia & Australia | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 154 | 188 | 185 |
Capital expenditures | 36 | 13 | 67 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 62 | 69 | 80 |
Capital expenditures | 54 | 38 | 52 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 16 | 0 | 0 |
Capital expenditures | $ 28 | $ 0 | $ 0 |
Segment Reporting (Long-Lived A
Segment Reporting (Long-Lived Assets By Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | |||
Financial instruments | $ 210 | $ 650 | $ 314 |
Total property, plant and equipment, net and Other assets | 8,717 | 9,132 | 8,602 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 8,507 | 8,482 | 8,288 |
Operating Segments | European Union | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 4,504 | 4,500 | 4,275 |
Operating Segments | Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 635 | 668 | 774 |
Operating Segments | Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 289 | 375 | 369 |
Operating Segments | South & Southeast Asia | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,386 | 1,348 | 1,361 |
Operating Segments | East Asia & Australia | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 740 | 807 | 829 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 661 | 784 | 680 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 292 | $ 0 | $ 0 |
Benefit Plans (Pension and Othe
Benefit Plans (Pension and Other Employee Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 115 | $ 97 | $ 89 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | (1) | (14) | (18) |
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | 108 | 103 | 100 |
Postretirement Benefit Costs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 8 | $ 8 | $ 7 |
Benefit Plans (Obligations and
Benefit Plans (Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Other | $ 21 | $ 0 | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | 12,243 | 10,612 | |
Service cost | 291 | 268 | $ 214 |
Interest cost | 50 | 68 | 118 |
Benefits paid | (417) | (356) | |
Employee contributions | 145 | 130 | |
Settlement, curtailment and plan amendment | (194) | (117) | |
Actuarial losses (gains) | (559) | 653 | |
Currency | (587) | 992 | |
Other | 26 | (7) | |
Benefit obligation, ending balance | 10,998 | 12,243 | 10,612 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 8,746 | 7,928 | |
Actual return on plan assets | 1,054 | 206 | |
Employer contributions | 269 | 102 | |
Employee contributions | 145 | 130 | |
Benefits paid | (417) | (356) | |
Settlement | (37) | (16) | |
Currency | (444) | 752 | |
Fair value of plan assets, ending balance | 9,337 | 8,746 | 7,928 |
Net benefit liability | (1,661) | (3,497) | |
Postretirement | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | 198 | 190 | |
Service cost | 2 | 2 | 2 |
Interest cost | 5 | 6 | 7 |
Benefits paid | (8) | (7) | |
Employee contributions | 0 | 0 | |
Settlement, curtailment and plan amendment | |||
Actuarial losses (gains) | 5 | 5 | |
Currency | (4) | 3 | |
Other | 0 | (1) | |
Benefit obligation, ending balance | 198 | 198 | $ 190 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Net benefit liability | $ (198) | $ (198) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts charged to expense for defined contribution plans | $ 71 | $ 66 | $ 63 |
Estimated contribution to pension plans | 108 | ||
Net postemployment costs | $ 228 | $ 208 | 171 |
Postemployment weighted-average discount rate | 3.10% | 3.00% | |
Postemployment annual weighted-average turnover rate | 2.90% | 3.00% | |
Postemployment percentage increase in assumed compensation cost | 2.10% | 2.10% | |
Assets related to postemployment cost | $ 46 | $ 46 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 55.00% | ||
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 45.00% | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 10,400 | 11,500 | |
Accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 7,500 | 10,500 | |
Accumulated benefit obligations in excess of plan assets, fair value of plan assets | 5,900 | 7,700 | |
Projected benefit obligations in excess of plan assets, project benefit obligation | 8,600 | 12,100 | |
Projected benefit obligations in excess of plan assets, fair value of plan assets | 6,700 | 8,600 | |
Accrued postemployment costs | 10,998 | 12,243 | $ 10,612 |
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued postemployment costs | $ 925 | $ 923 | |
Pension Plan Portfolio | Benefit Obligation | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 4.00% | 4.00% | |
Pension Plan Portfolio | Benefit Obligation | Switzerland | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 65.00% | 63.00% | |
Pension Plan Portfolio | Fair Value Of Plan Assets | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 3.00% | 4.00% | |
Pension Plan Portfolio | Fair Value Of Plan Assets | Switzerland | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 60.00% | 59.00% |
Benefit Plans (Pension and Post
Benefit Plans (Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | $ 323 | $ 43 |
Accrued liabilities — employment costs | (24) | (26) |
Long-term employment costs | (1,960) | (3,514) |
Net benefit liability | (1,661) | (3,497) |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued liabilities — employment costs | (9) | (8) |
Long-term employment costs | (189) | (190) |
Net benefit liability | $ (198) | $ (198) |
Benefit Plans (Weighted-Average
Benefit Plans (Weighted-Average Assumptions to Determine Benefit Obligations) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 0.86% | 0.56% |
Rate of compensation increase (as a percent) | 1.77% | 1.79% |
Interest crediting rate (as a percent) | 3.15% | 3.20% |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 3.08% | 2.84% |
Heath care cost trend rate assumed for next year (as a percent) | 6.27% | 6.21% |
Ultimate trend rate (as a percent) | 4.80% | 4.73% |
Benefit Plans (Components of Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 291 | $ 268 | $ 214 |
Interest cost | 50 | 68 | 118 |
Expected return on plan assets | (371) | (353) | (328) |
Amortization: | |||
Net losses | 314 | 265 | 189 |
Prior service cost | 1 | 1 | (1) |
Net transition obligation | 0 | 1 | 0 |
Settlement and curtailment | 5 | 4 | 4 |
Net periodic pension and postretirement costs | 290 | 254 | 196 |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 5 | 6 | 7 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization: | |||
Net losses | 3 | 2 | 0 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | 0 |
Settlement and curtailment | 0 | 0 | 0 |
Net periodic pension and postretirement costs | $ 10 | $ 10 | $ 9 |
Benefit Plans (Net Pension and
Benefit Plans (Net Pension and Postretirement Cost Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost (as a percent) | 0.72% | 1.25% | 2.14% |
Discount rate - interest cost (as a percent) | 0.44% | 0.67% | 1.35% |
Expected rate of return on plan assets (as a percent) | 4.43% | 4.59% | 4.70% |
Rate of compensation increase (as a percent) | 1.79% | 1.82% | 1.86% |
Interest crediting rate (as a percent) | 3.20% | 3.20% | 3.40% |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost (as a percent) | 2.84% | 3.28% | 3.97% |
Discount rate - interest cost (as a percent) | 2.84% | 3.28% | 3.97% |
Health care cost trend rate (as a percent) | 6.21% | 6.21% | 6.17% |
Benefit Plans (Fair Value of Pe
Benefit Plans (Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
U S and International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 59.00% | 63.00% | |
U S and International Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 15.00% | 16.00% | |
Real Estate and Other Money Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 12.00% | 12.00% | |
Investment Funds Holding Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 14.00% | 9.00% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 9,337 | $ 8,746 | $ 7,928 |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 9,015 | 8,439 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 355 | 324 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 193 | 175 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 658 | 605 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 7,317 | 6,811 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | International government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 210 | 225 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 278 | 292 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 4 | 7 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 7,218 | 6,758 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 355 | 324 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 193 | 175 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 658 | 605 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 5,592 | 5,206 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | International government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 139 | 149 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 278 | 292 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 3 | 7 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,797 | 1,681 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,725 | 1,605 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | International government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 71 | 76 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1 | ||
Pension Plan | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Pension Plan | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | International government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 322 | $ 307 |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Benefit Payments From Pension Plans) (Details) - Pension Plan $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 407 |
2023 | 421 |
2024 | 386 |
2025 | 382 |
2026 | 400 |
2027 - 2031 | $ 2,193 |
Benefit Plans (Amounts Recorded
Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | $ (3,443) | $ (5,050) | $ (4,556) |
Prior service cost | 50 | 2 | 5 |
Net transition obligation | (3) | (3) | (4) |
Deferred income taxes | 516 | 798 | 726 |
Losses to be amortized | (2,880) | (4,253) | (3,829) |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (2,495) | (4,147) | (3,718) |
Prior service cost | 71 | 22 | 3 |
Net transition obligation | (3) | (3) | (4) |
Deferred income taxes | 278 | 570 | 520 |
Losses to be amortized | (2,149) | (3,558) | (3,199) |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (64) | (64) | (63) |
Prior service cost | 1 | 2 | 2 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 24 | 24 | 24 |
Losses to be amortized | (39) | (38) | (37) |
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (884) | (839) | (775) |
Prior service cost | (22) | (22) | 0 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 214 | 204 | 182 |
Losses to be amortized | $ (692) | $ (657) | $ (593) |
Benefit Plans (Movements in Oth
Benefit Plans (Movements in Other Comprehensive Earnings (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization: | |||
Net losses | $ 383 | $ 331 | $ 278 |
Prior service cost | 6 | 29 | 31 |
Net transition obligation | 0 | 1 | |
Other income/expense: | |||
Net losses | 6 | 3 | 3 |
Prior service cost | 0 | 2 | |
Deferred income taxes | (72) | (67) | (69) |
Amortization of net losses, prior service costs and net transition costs | 323 | 299 | 243 |
Other movements during the year: | |||
Deferred income taxes | (210) | 139 | 247 |
Net gains (losses) and prior service costs | 1,055 | (726) | (454) |
Total accumulated other comprehensive losses | |||
Other movements during the year: | |||
Net losses | 1,218 | (828) | (698) |
Prior service cost | 42 | (34) | (2) |
Deferred income taxes | (210) | 139 | 247 |
Net gains (losses) and prior service costs | 1,050 | (723) | (426) |
Total movements in other comprehensive earnings (losses) | 1,373 | (424) | (183) |
Pension Plan | |||
Amortization: | |||
Net losses | 294 | 250 | 198 |
Prior service cost | 7 | 29 | 32 |
Net transition obligation | 0 | 1 | |
Other income/expense: | |||
Net losses | 5 | 3 | 3 |
Prior service cost | 0 | 2 | |
Deferred income taxes | (51) | (49) | (51) |
Amortization of net losses, prior service costs and net transition costs | 255 | 236 | 182 |
Other movements during the year: | |||
Net losses | 1,353 | (682) | (521) |
Prior service cost | 42 | (12) | (2) |
Deferred income taxes | (241) | 99 | 206 |
Net gains (losses) and prior service costs | 1,154 | (595) | (291) |
Total movements in other comprehensive earnings (losses) | 1,409 | (359) | (109) |
Postretirement | |||
Amortization: | |||
Net losses | 4 | 3 | 3 |
Prior service cost | (1) | 0 | (1) |
Net transition obligation | 0 | 0 | |
Other income/expense: | |||
Net losses | 1 | 0 | 0 |
Prior service cost | 0 | 0 | |
Deferred income taxes | (1) | (1) | (1) |
Amortization of net losses, prior service costs and net transition costs | 3 | 2 | 1 |
Other movements during the year: | |||
Net losses | (5) | (4) | (27) |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | 1 | 1 | 6 |
Net gains (losses) and prior service costs | (4) | (3) | (20) |
Total movements in other comprehensive earnings (losses) | (1) | (1) | (19) |
Postemployment Benefit Plans | |||
Amortization: | |||
Net losses | 85 | 78 | 77 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | |
Other income/expense: | |||
Net losses | 0 | 0 | 0 |
Prior service cost | 0 | 0 | |
Deferred income taxes | (20) | (17) | (17) |
Amortization of net losses, prior service costs and net transition costs | 65 | 61 | 60 |
Other movements during the year: | |||
Net losses | (130) | (142) | (150) |
Prior service cost | 0 | (22) | 0 |
Deferred income taxes | 30 | 39 | 35 |
Net gains (losses) and prior service costs | (100) | (125) | (115) |
Total movements in other comprehensive earnings (losses) | (35) | (64) | (55) |
Deconsolidation of RBH | |||
Other income/expense: | |||
Deferred income taxes | 0 | 0 | (15) |
Amortization of net losses, prior service costs and net transition costs | $ 0 | $ 0 | 27 |
Deconsolidation of RBH | Total accumulated other comprehensive losses | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 27 | ||
Deconsolidation of RBH | Pension Plan | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 26 | ||
Deconsolidation of RBH | Postretirement | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | 1 | ||
Deconsolidation of RBH | Postemployment Benefit Plans | |||
Other movements during the year: | |||
Deconsolidation of RBH (net of deferred income taxes) | $ 0 |
Additional Information (Details
Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additional Information [Abstract] | |||
Research and development expense | $ 617 | $ 495 | $ 465 |
Advertising expense | 807 | 637 | 730 |
Foreign currency net transaction (gains)/losses | 45 | 90 | (95) |
Interest expense | 737 | 728 | 796 |
Interest income | (109) | (110) | (226) |
Interest expense, net | $ 628 | $ 618 | $ 570 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | $ 20,700 | $ 26,500 | |
Derivative gains to be reclassified to earnings | $ 27 | ||
Foreign Exchange Contract | Maximum | |||
Derivative [Line Items] | |||
Remaining maturity | 12 months | ||
Foreign Exchange Contract | Derivative contracts not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | $ 10,300 | 12,600 | |
Cash Flow Hedging | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | 3,800 | 5,000 | |
Net Investment Hedging | Foreign Debt | |||
Derivative [Line Items] | |||
Gain (loss) within currency translation | 278 | (465) | $ 234 |
Net Investment Hedging | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | 6,200 | $ 8,900 | |
Fair Value Hedging | |||
Derivative [Line Items] | |||
Carrying amounts of debt hedged | 398 | ||
Fair Value Hedging | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | $ 400 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Foreign Exchange Contracts) (Details) - Foreign Exchange Contract - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 232 | $ 182 |
Gross amounts not offset in the consolidated balance sheet, derivative assets - financial instruments | (126) | (156) |
Gross amounts not offset in the consolidated balance sheet, derivative assets - cash collateral received/pledged | (93) | (23) |
Gross amounts not offset in the consolidated balance sheet, derivative assets, total | 13 | 3 |
Fair value of derivative liabilities | 299 | 1,110 |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities - financial instruments | (126) | (156) |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities - cash collateral received/pledged | (151) | (892) |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities, total | 22 | 62 |
Derivative contracts designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 173 | 130 |
Derivative contracts designated as hedging instruments | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 34 | 241 |
Derivative contracts designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 22 | 6 |
Derivative contracts designated as hedging instruments | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 190 | 605 |
Derivative contracts not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 37 | 46 |
Derivative contracts not designated as hedging instruments | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 75 | 207 |
Derivative contracts not designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Derivative contracts not designated as hedging instruments | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 0 | $ 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) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | $ 628 | $ (595) | $ 349 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 42 | 20 | 17 |
Cash flow hedges | Derivative contracts designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives from Cash Flow Hedging | 144 | (81) | (20) |
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives from Net Investment Hedging | 484 | (514) | 369 |
Cash flow hedges | Derivative contracts not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | 421 | (103) | 209 |
Cash flow hedges | Net revenues | Derivative contracts designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 59 | (3) | 22 |
Cash flow hedges | Cost of sales | Derivative contracts designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 7 | 1 |
Cash flow hedges | Marketing, administration and research costs | Derivative contracts designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (10) | 27 | 2 |
Cash flow hedges | Marketing, administration and research costs | Derivative contracts not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | 215 | (368) | (115) |
Cash flow hedges | Interest expense, net | Derivative contracts designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (7) | (11) | (8) |
Amount of Gain/(Loss) Recognized in Earnings, Investment Hedging | 150 | 194 | 230 |
Cash flow hedges | Interest expense, net | Derivative contracts not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | 55 | 71 | 94 |
Fair value hedges | Interest expense, net | Derivative contracts designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ 1 | $ 0 | $ 0 |
Financial Instruments (Hedging
Financial Instruments (Hedging Activity Affect on AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | |||
(Gains) losses transferred to earnings, net of income taxes | $ (35) | $ (20) | $ (14) |
Gains (losses) recognized, net of income taxes | 124 | (68) | (18) |
Foreign Exchange Contract | Other Comprehensive Income (Loss) | |||
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | |||
Gains (loss), beginning balance | (85) | 3 | 35 |
(Gains) losses transferred to earnings, net of income taxes | (35) | (20) | (14) |
Gains (losses) recognized, net of income taxes | 124 | (68) | (18) |
Gains (loss), ending balance | $ 4 | $ (85) | $ 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Losses, Net Of Taxes) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (8,208) | $ (10,631) | $ (9,599) | $ (10,739) |
Currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (6,701) | (6,843) | (5,537) | |
Pension and other benefits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (2,880) | (4,253) | (3,829) | |
Derivatives accounted for as hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | 4 | (85) | 3 | |
Total accumulated other comprehensive losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (9,577) | $ (11,181) | $ (9,363) | $ (10,111) |
Contingencies (Tobacco-Related
Contingencies (Tobacco-Related Litigation) (Details) | Mar. 01, 2019USD ($)litigationCase | Mar. 01, 2019CAD ($)litigationCase | May 27, 2015USD ($)manufacturerplaintiff | May 27, 2015CAD ($)manufacturerplaintiff | Jun. 20, 2012cigarette | Jul. 10, 2009cigarette | Oct. 30, 2015USD ($) | Oct. 30, 2015CAD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021litigationCase |
Loss Contingencies [Line Items] | |||||||||||
Number of cases decided in favor of PM | 523 | ||||||||||
Number of cases decided in favor of plaintiff | 14 | ||||||||||
Cases Remaining On Appeal | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of 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 | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Smoking and Health Class Actions | |||||||||||
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 | 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. | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages awarded | $ 12,100,000,000 | $ 15,500,000,000 | |||||||||
Punitive damages awarded | 70,500 | 90,000 | |||||||||
Damages awarded, reduced amount | $ 10,600,000,000 | $ 13,500,000,000 | |||||||||
Canada | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | RBH | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages awarded | $ 2,100,000,000 | $ 2,700,000,000 | $ 2,400,000,000 | $ 3,100,000,000 | |||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | 20.00% | 20.00% | |||||||
Punitive damages awarded | $ 23,500 | $ 30,000 | |||||||||
Canada | 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. | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages awarded that are to be deposited into trust | $ 862,000,000 | $ 1,100,000,000 | |||||||||
Payment period for amount to be deposited into trust | 60 days | 60 days | |||||||||
Canada | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | RBH | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Amount of security ordered to be furnished and paid | $ 177,000,000 | $ 226,000,000 | |||||||||
Amount of security ordered, funded by defendant | $ 194,000,000 | $ 257,000,000 | |||||||||
Amount of litigation charge | $ | $ 194,000,000 | $ 194,000,000 | |||||||||
Amount of litigation charge net of tax | $ | $ 142,000,000 | ||||||||||
Number of cases decided in favor of plaintiff | 2 | 2 | |||||||||
Canada | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | Imperial Tobacco Ltd. | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Motion for security ordered by appeals court | $ 594,000,000 | $ 758,000,000 | |||||||||
Canada | Cecilia Letourneau | Smoking and Health Class Actions | |||||||||||
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 | Cecilia Letourneau | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages awarded | $ 103,000,000 | $ 131,000,000 | |||||||||
Canada | Cecilia Letourneau | Judicial Ruling | RBH | Smoking and Health Class Actions | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages awarded | $ 36,000,000 | $ 46,000,000 | |||||||||
Punitive damages awarded including interest | $ 45,000,000 | $ 57,000,000 | |||||||||
Canada | Adams | Pending Litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Plaintiff requirement, minimum number of cigarettes smoked | cigarette | 25,000 | ||||||||||
Canada | Suzanne Jacklin | Pending Litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Plaintiff requirement, minimum number of cigarettes smoked | cigarette | 25,000 |
Contingencies (Number of Tobacc
Contingencies (Number of Tobacco Related Cases Pertaining to Combustible Products Pending Against Us and/or Our Subsidiaries or Indemnitees) (Details) - Combustible Products - litigationCase | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Individual Smoking and Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 40 | 43 | 50 |
Smoking and Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 9 | 9 | 10 |
Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 17 | 17 | 17 |
Label-Related Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 0 | 0 | 0 |
Individual Label-Related Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 | 5 | 5 |
Public Civil Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | 2 | 2 |
Contingencies (Verdicts and Pos
Contingencies (Verdicts and Post-Trial Developments) (Details) - Judicial Ruling | Dec. 16, 2021USD ($) | Dec. 16, 2021ARS ($) | 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 | 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 | $ 12,100,000,000 | ||||||||||
Punitive damages awarded | 90,000 | 70,500 | ||||||||||
Awarded compensatory damages that are to be deposited into trust | 1,000,000,000 | 783,000,000 | ||||||||||
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 | $ 2,400,000,000 | ||||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | 20.00% | 20.00% | ||||||||
Punitive damages awarded | $ 30,000 | $ 23,500 | ||||||||||
Awarded compensatory damages that are to be deposited into trust | $ 200,000,000 | $ 157,000,000 | ||||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | ||||||||||
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 | $ 103,000,000 | ||||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | RBH | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Punitive damages awarded | $ 46,000,000 | $ 36,000,000 | ||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||||||||
Argentina | Smoking And Health Individual Actions | Hugo Lespada | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Compensatory damages awarded | $ 1,044 | $ 110,000 | ||||||||||
Argentina | Smoking And Health Individual Actions | Claudia Milano | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Compensatory damages awarded | $ 1,423 | $ 150,000 | ||||||||||
Punitive damages awarded | $ 37,958 | $ 4,000,000 | ||||||||||
Damages awarded that are to be deposited into trust | $ 58,024 | $ 6,114,428 | ||||||||||
Damages returned to subsidiary | $ 8,478 | $ 893,428 |
Contingencies (Smoking and Heal
Contingencies (Smoking and Health Litigation) (Details) - Combustible Products - litigationCase | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Individual Smoking and Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 40 | 43 | 50 |
Individual Smoking and Health Cases | Argentina | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 31 | ||
Individual Smoking and Health Cases | Brazil | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Individual Smoking and Health Cases | Canada | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Individual Smoking and Health Cases | Chile | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Individual Smoking and Health Cases | Philippines | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Individual Smoking and Health Cases | Turkey | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Individual Smoking and Health Cases | Scotland | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Individual Smoking and Health Cases | United States District Court, District of Oregon | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Smoking and Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 9 | 9 | 10 |
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 | Dec. 31, 2021litigationCase | Dec. 31, 2020litigationCase | Dec. 31, 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 | 17 | ||||||
Combustible Products | Brazil | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 1 | ||||||||
Combustible Products | Canada | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 10 | ||||||||
Combustible Products | Korea | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 1 | ||||||||
Combustible Products | Nigeria | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 5 |
Contingencies (Label-Related Ca
Contingencies (Label-Related Cases) (Details) - Combustible Products - Individual Label-Related Cases - litigationCase | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 | 5 | 5 |
Italy | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Chile | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 |
Contingencies (Public Civil Act
Contingencies (Public Civil Actions) (Details) - Combustible Products - Public Civil Actions - litigationCase | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | 2 | 2 |
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 ($) | Jan. 26, 2017THB (฿) | Jan. 18, 2016USD ($) | Jan. 18, 2016THB (฿) | Jun. 30, 2020USD ($) | Jun. 30, 2020KRW (₩) | Mar. 31, 2020USD ($) | Mar. 31, 2020THB (฿) | Jan. 31, 2020USD ($) | Jan. 31, 2020KRW (₩) | Nov. 30, 2019USD ($) | Nov. 30, 2019THB (฿) | Sep. 30, 2019USD ($) | Sep. 30, 2019RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) | Sep. 30, 2019USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021SAR (ر.س) |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Tax benefit | $ (2,671) | $ (2,377) | $ (2,293) | ||||||||||||||||||||||
Pre-tax charge | (31,405) | $ (28,694) | $ (29,805) | ||||||||||||||||||||||
SAUDI ARABIA | Middle East & Africa | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Pre-tax charge | 246 | ||||||||||||||||||||||||
Other Litigation | Thailand | The Department of Special Investigations of the Government of Thailand | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency, damages sought, value | $ 599 | ฿ 19,800 | |||||||||||||||||||||||
Amount of fine imposed by trial court | $ 4 | ฿ 130 | $ 36 | ฿ 1,200 | |||||||||||||||||||||
Other Litigation | Thailand | The Department of Special Investigations of the Government of Thailand | Pending Litigation | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss contingency, damages sought, value | $ 2,400 | ฿ 80,800 | |||||||||||||||||||||||
Other Litigation | Korea | The South Korean Board of Audit and Inspection | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Amounts paid | $ 83 | ₩ 100 | $ 143 | ₩ 172 | $ 227 | ₩ 272 | |||||||||||||||||||
Amount of taxes not underpaid as ruled by trial court | $ 182 | ₩ 218 | |||||||||||||||||||||||
Amount of alleged underpayments not underpaid as ruled by court | $ 45 | ₩ 54 | |||||||||||||||||||||||
Other Litigation | Eastern Europe | 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 | ||||||||||||||||||||||||
Other Litigation | SAUDI ARABIA | Saudi Arabia Customs General Authority Case | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Additional customs duties ordered to be paid | $ 396 | ر.س 1.5 |
Contingencies (Third-Party Guar
Contingencies (Third-Party Guarantees) (Details) $ in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 17, 2020CAD ($) | Oct. 17, 2020USD ($) |
Canadian Government | Financial Guarantee | ||||
Loss Contingencies [Line Items] | ||||
Value of financial guarantee | $ 173 | $ 131 | ||
Philip Morris Investment B.V. | Medicago Inc. | ||||
Loss Contingencies [Line Items] | ||||
Ownership interest (as a percent) | 23.00% | 32.00% |
Sale of Accounts Receivable (De
Sale of Accounts Receivable (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sale of Accounts Receivable [Abstract] | |||
Accounts receivable sold | $ 11.8 | $ 11.5 | |
Trade receivables sold and derecognized that remain uncollected | $ 0.9 | $ 1.2 | $ 0.9 |
Asset Impairment and Exit Cos_3
Asset Impairment and Exit Costs (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)employee | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | $ 216 | $ 149 | $ 422 |
European Union | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 342 | ||
Total separation programs | 251 | ||
Asset impairment charges | 91 | ||
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 57 | 0 | |
Contract Termination | East Asia & Australia | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 57 | 0 | |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 141 | 303 | |
Employee Severance | East Asia & Australia | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 31 | 25 | 0 |
Employee Severance | European Union | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 68 | 53 | 251 |
Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 0 | 8 | 119 |
Asset Impairment | East Asia & Australia | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 0 | 1 | 0 |
Asset Impairment | European Union | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 0 | 4 | 91 |
Philip Morris Korea | Contract Termination | East Asia & Australia | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | $ 57 | ||
Organizational Design Optimization | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | employee | 1,020 | ||
Cost incurred to date | $ 308 | ||
Organizational Design Optimization | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 159 | $ 149 | |
Cost incurred to date | 300 | ||
Organizational Design Optimization | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost incurred to date | $ 8 | ||
Global Manufacturing Infrastructure Optimization Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit costs | 80 | ||
Global Manufacturing Infrastructure Optimization Plan | Argentina | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment and exit costs | 15 | ||
Global Manufacturing Infrastructure Optimization Plan | Colombia | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment and exit costs | 45 | ||
Global Manufacturing Infrastructure Optimization Plan | Pakistan | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment and exit costs | $ 20 |
Asset Impairment and Exit Cos_4
Asset Impairment and Exit Costs (Asset Impairment and Exit Costs by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | $ 216 | $ 149 | $ 422 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 141 | 303 | |
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 57 | 0 | |
Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 8 | 119 |
European Union | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 342 | ||
European Union | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 68 | 53 | 251 |
European Union | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 4 | 91 |
Eastern Europe | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 14 | 14 | 0 |
Eastern Europe | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 1 | 0 |
Middle East & Africa | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 17 | 18 | 0 |
Middle East & Africa | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 1 | 0 |
South & Southeast Asia | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 21 | 22 | 3 |
South & Southeast Asia | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 1 | 17 |
East Asia & Australia | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 31 | 25 | 0 |
East Asia & Australia | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 57 | 0 | |
East Asia & Australia | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 1 | 0 |
Americas | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 8 | 9 | 49 |
Americas | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | $ 0 | $ 0 | $ 11 |
Asset Impairment and Exit Cos_5
Asset Impairment and Exit Costs (Movement in Exit Cost Liabilities) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Movement in exit cost liabilities | |
Liability balance, January 1, 2021 | $ 180 |
Charges, net | 216 |
Cash spent | (238) |
Currency/other | (16) |
Liability balance, September 30,2020 | $ 142 |
Deconsolidation of RBH (Details
Deconsolidation of RBH (Details) $ in Millions, $ in Millions | Mar. 01, 2019USD ($)litigationCase | Mar. 01, 2019CAD ($)litigationCase | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021litigationCase | Mar. 22, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||
Number of cases decided in favor of plaintiff | litigationCase | 14 | |||||
Marketing, administration and research costs | ||||||
Loss Contingencies [Line Items] | ||||||
Deconsolidation amount | $ 239 | |||||
Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||||||
Loss Contingencies [Line Items] | ||||||
Pending litigation liabilities measurement input | 0.08 | |||||
Measurement Input, Terminal Growth Rate | Valuation Technique, Discounted Cash Flow | ||||||
Loss Contingencies [Line Items] | ||||||
Pending litigation liabilities measurement input | 0.025 | |||||
RBH | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | $ 3,519 | |||||
Equity securities | 3,280 | |||||
Tax benefit for reversal of deferred tax liabilities | 49 | |||||
RBH | Cash | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | 1,323 | |||||
RBH | Goodwill | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | 1,463 | |||||
RBH | Other Comprehensive Earnings | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | 529 | |||||
RBH | Other Assets and Liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Amount deconsolidated from balance sheet | $ 204 | |||||
Appellate Ruling | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Smoking and Health Class Actions | Canada | RBH | ||||||
Loss Contingencies [Line Items] | ||||||
Number of cases decided in favor of plaintiff | litigationCase | 2 | 2 | ||||
Amount of litigation charge | $ 194 | $ 194 | ||||
Amount of litigation charge net of tax | $ 142 | |||||
Amount of security ordered, funded by defendant | $ 194 | $ 257 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Other assets | $ 526 | $ 697 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Accrued liabilities - Other | $ 192 | $ 190 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Income Taxes And Other Liabilities, Noncurrent | Income Taxes And Other Liabilities, Noncurrent |
Income taxes and other liabilities | $ 344 | $ 517 |
Total lease liabilities | $ 536 | $ 707 |
Finance Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Machinery and equipment | Machinery and equipment |
Finance lease, right of use asset | $ 108 | $ 76 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Less current portion of long-term debt | Less current portion of long-term debt |
Finance lease, current liability | $ 48 | $ 13 |
Finance leases, noncurrent | $ 23 | $ 24 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt (Note 7) | Long-term debt (Note 7) |
Finance leases | $ 71 | $ 37 |
Machinery and Equipment | ||
Finance Leases | ||
Finance lease, right of use asset | $ 108 | 12 |
Other assets | ||
Finance Leases | ||
Finance lease, right of use asset | $ 64 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 72 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 259 | $ 237 | $ 242 |
Finance Lease, Right-of-Use Asset, Amortization | 54 | 31 | 18 |
Finance Lease, Interest Expense | 1 | 1 | 1 |
Short-term lease cost | 55 | 49 | 61 |
Variable lease cost | 25 | 31 | 29 |
Total lease cost | $ 394 | $ 349 | $ 351 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 215 | |
2023 | 131 | |
2024 | 84 | |
2025 | 54 | |
2026 | 24 | |
Thereafter | 140 | |
Total lease payments | 648 | |
Less: Interest | 112 | |
Operating lease liabilities | 536 | $ 707 |
Finance Leases | ||
2022 | 49 | |
2023 | 18 | |
2024 | 2 | |
2025 | 1 | |
2026 | 1 | |
Thereafter | 1 | |
Total lease payments | 72 | |
Less: Interest | 1 | |
Present value of lease liabilities | $ 71 | $ 37 |
Leases - Other Lease Informatio
Leases - Other Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities in operating cash flow | $ 259 | $ 238 | $ 240 |
Cash paid for amounts included in the measurement of lease liabilities in financing cash flows | 26 | 19 | 15 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 89 | 32 | 38 |
Leased assets obtained in exchange for new lease liabilities | $ 64 | $ 149 | $ 221 |
Weighted-average remaining lease term (years) | 8 years 3 months 18 days | 10 years 1 month 6 days | 9 years 7 months 6 days |
Weighted-average remaining lease term (years) | 1 year 8 months 12 days | 1 year 7 months 6 days | 2 years 4 months 24 days |
Weighted-average discount rate (as a percent) | 3.60% | 4.30% | 4.40% |
Weighted-average discount rate (as a percent) | 5.30% | 6.70% | 7.10% |