Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 677 Washington Blvd, Suite 1100 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901 | |
City Area Code | (203) | |
Local Phone Number | 905-2410 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,552,345,193 | |
Entity Central Index Key | 0001413329 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | PM | |
Security Exchange Name | NYSE | |
3.600% Notes due 2023 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.600% Notes due 2023 | |
Trading Symbol | PM23A | |
Security Exchange Name | NYSE | |
2.875% Notes due 2024 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.875% Notes due 2024 | |
Trading Symbol | PM24 | |
Security Exchange Name | NYSE | |
2.875% Notes due 2024 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.875% Notes due 2024 | |
Trading Symbol | PM24C | |
Security Exchange Name | NYSE | |
0.625% Notes due 2024 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Notes due 2024 | |
Trading Symbol | PM24B | |
Security Exchange Name | NYSE | |
3.250% Notes due 2024 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.250% Notes due 2024 | |
Trading Symbol | PM24A | |
Security Exchange Name | NYSE | |
2.750% Notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.750% Notes due 2025 | |
Trading Symbol | PM25 | |
Security Exchange Name | NYSE | |
3.375% Notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.375% Notes due 2025 | |
Trading Symbol | PM25A | |
Security Exchange Name | NYSE | |
2.750% Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.750% Notes due 2026 | |
Trading Symbol | PM26A | |
Security Exchange Name | NYSE | |
2.875% Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.875% Notes due 2026 | |
Trading Symbol | PM26 | |
Security Exchange Name | NYSE | |
0.125% Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.125% Notes due 2026 | |
Trading Symbol | PM26B | |
Security Exchange Name | NYSE | |
3.125% Notes due 2027 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.125% Notes due 2027 | |
Trading Symbol | PM27 | |
Security Exchange Name | NYSE | |
3.125% Notes due 2028 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.125% Notes due 2028 | |
Trading Symbol | PM28 | |
Security Exchange Name | NYSE | |
2.875% Notes due 2029 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.875% Notes due 2029 | |
Trading Symbol | PM29 | |
Security Exchange Name | NYSE | |
3.375% Notes due 2029 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.375% Notes due 2029 | |
Trading Symbol | PM29A | |
Security Exchange Name | NYSE | |
0.800% Notes due 2031 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.800% Notes due 2031 | |
Trading Symbol | PM31 | |
Security Exchange Name | NYSE | |
3.125% Notes due 2033 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.125% Notes due 2033 | |
Trading Symbol | PM33 | |
Security Exchange Name | NYSE | |
2.000% Notes due 2036 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.000% Notes due 2036 | |
Trading Symbol | PM36 | |
Security Exchange Name | NYSE | |
1.875% Notes due 2037 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.875% Notes due 2037 | |
Trading Symbol | PM37A | |
Security Exchange Name | NYSE | |
6.375% Notes due 2038 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.375% Notes due 2038 | |
Trading Symbol | PM38 | |
Security Exchange Name | NYSE | |
1.450% Notes due 2039 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.450% Notes due 2039 | |
Trading Symbol | PM39 | |
Security Exchange Name | NYSE | |
4.375% Notes due 2041 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.375% Notes due 2041 | |
Trading Symbol | PM41 | |
Security Exchange Name | NYSE | |
4.500% Notes due 2042 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.500% Notes due 2042 | |
Trading Symbol | PM42 | |
Security Exchange Name | NYSE | |
3.875% Notes due 2042 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.875% Notes due 2042 | |
Trading Symbol | PM42A | |
Security Exchange Name | NYSE | |
4.125% Notes due 2043 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.125% Notes due 2043 | |
Trading Symbol | PM43 | |
Security Exchange Name | NYSE | |
4.875% Notes due 2043 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.875% Notes due 2043 | |
Trading Symbol | PM43A | |
Security Exchange Name | NYSE | |
4.250% Notes due 2044 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.250% Notes due 2044 | |
Trading Symbol | PM44 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||||
Income Statement [Abstract] | ||||||||
Total PMI net revenues | $ 8,967 | [1],[2] | $ 7,832 | [1],[2] | $ 16,986 | [3],[4] | $ 15,578 | [3],[4] |
Cost of sales (Note 3) | 3,228 | 2,648 | 6,266 | 5,256 | ||||
Gross profit | 5,739 | 5,184 | 10,720 | 10,322 | ||||
Marketing, administration and research costs 3 (Notes 3, 6 & 10) | 3,173 | [5] | 2,128 | [5] | 5,423 | [6] | 3,968 | [6] |
Operating income | 2,566 | 3,056 | 5,297 | 6,354 | ||||
Interest expense, net | 297 | 126 | 527 | 280 | ||||
Pension and other employee benefit costs (Note 5) | 6 | 5 | 28 | 9 | ||||
Earnings before income taxes | 2,263 | 2,925 | 4,742 | 6,065 | ||||
Provision for income taxes | 560 | 594 | 988 | 1,213 | ||||
Equity investments and securities (income)/loss, net | 21 | (15) | (30) | 41 | ||||
Net earnings | 1,682 | 2,346 | 3,784 | 4,811 | ||||
Net earnings attributable to noncontrolling interests | 114 | 113 | 221 | 247 | ||||
Net earnings attributable to PMI | $ 1,568 | $ 2,233 | $ 3,563 | $ 4,564 | ||||
Per share data (Note 8): | ||||||||
Basic earnings per share (in dollars per share) | $ 1.01 | $ 1.44 | $ 2.29 | $ 2.94 | ||||
Diluted earnings per share (in dollars per share) | $ 1.01 | $ 1.43 | $ 2.29 | $ 2.93 | ||||
[1]Includes net revenues from related parties of $901 million and $869 million for the three months ended June 30, 2023 and 2022, respectively[2]Net of excise taxes of $12,749 million and $12,577 million for the three months ended June 30, 2023 and 2022, respectively[3]Includes net revenues from related parties of $1,774 million and $1,547 million for the six months ended June 30, 2023 and 2022, respectively[4]Net of excise tax on products of $24,048 million and $24,172 million for the six months ended June 30, 2023 and 2022, respectively[5]Includes an impairment charge for goodwill and other intangibles of $680 million and a charge of $204 million for the South Korea indirect tax charge for the three months ended June 30, 2023, respectively. For further details, see Note 6. Goodwill and Other Intangible Assets, net and Note 10. Contingencies. Goodwill and Other Intangible Assets, net and Note 10. Contingencies. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,682 | $ 2,346 | $ 3,784 | $ 4,811 |
Change in currency translation adjustments: | ||||
Unrealized gains (losses), net of income taxes | (572) | 413 | (827) | 219 |
(Gains)/losses transferred to earnings, net of income taxes of $0 in 2023 and 2022 | 2 | 0 | 2 | 0 |
Change in net loss and prior service cost: | ||||
Net gains (losses) and prior service costs, net of income taxes | (2) | 36 | 0 | 36 |
Amortization of net losses, prior service costs and net transition costs, net of income taxes | 16 | 55 | 41 | 110 |
Change in fair value of derivatives accounted for as hedges: | ||||
Gains (losses) recognized, net of income taxes | 187 | 191 | 246 | 301 |
(Gains) losses transferred to earnings, net of income taxes | (75) | (46) | (104) | (55) |
Other comprehensive earnings (losses), net of income taxes | (444) | 649 | (642) | 611 |
Total comprehensive earnings | 1,238 | 2,995 | 3,142 | 5,422 |
Less comprehensive earnings (losses) attributable to: | ||||
Noncontrolling interests | 101 | 45 | 65 | 324 |
Comprehensive earnings attributable to PMI | $ 1,137 | $ 2,950 | $ 3,077 | $ 5,098 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in foreign currency translation adjustments, unrealized gains (losses), tax | $ 31 | $ (151) | $ 83 | $ (182) |
Change in currency translation adjustments, transferred to earnings, tax | 0 | 0 | 0 | 0 |
Net gains (losses) and prior service costs, tax | 1 | 36 | 0 | 36 |
Amortization of net losses, prior service costs and net transition costs, tax | (7) | (9) | (14) | (22) |
Change in fair value of derivatives accounted for as hedges, gains (losses) recognized, tax | (32) | (34) | (48) | (54) |
Change in fair value of derivatives accounted for as hedges, (gains) losses transferred to earnings, tax | $ 16 | $ 7 | $ 22 | $ 9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Cash and cash equivalents | $ 3,492 | $ 3,207 | |
Trade receivables (less allowances of $65 in 2023 and $42 in 2022) (1) | [1] | 4,110 | 3,850 |
Other receivables (less allowances of $34 in 2023 and $32 in 2022) | 902 | 906 | |
Inventories: | |||
Leaf tobacco | 2,010 | 1,674 | |
Other raw materials | 2,367 | 2,028 | |
Finished product | 5,523 | 6,184 | |
Total inventory, net | 9,900 | 9,886 | |
Other current assets | 1,432 | 1,770 | |
Total current assets | 19,836 | 19,619 | |
Property, plant and equipment, at cost | 16,195 | 15,443 | |
Less: accumulated depreciation | 9,204 | 8,733 | |
Total property, plant and equipment, net | 6,991 | 6,710 | |
Goodwill (Note 6) | 19,236 | 19,655 | |
Other intangible assets, net (Note 6) | 6,630 | 6,732 | |
Equity investments (Note 14) | 4,747 | 4,431 | |
Deferred income taxes | 574 | 603 | |
Other assets (less allowances of $25 in 2023 and $20 in 2022) (Note 2) | 3,854 | 3,931 | |
TOTAL ASSETS | 61,868 | 61,681 | |
LIABILITIES | |||
Short-term borrowings (Note 12) | 4,121 | 5,637 | |
Current portion of long-term debt (Note 12) | 2,372 | 2,611 | |
Accounts payable | 3,786 | 4,076 | |
Accrued liabilities: | |||
Marketing and selling | 820 | 695 | |
Taxes, except income taxes | 5,939 | 7,440 | |
Employment costs | 1,023 | 1,168 | |
Dividends payable | 1,992 | 1,990 | |
Other | 2,348 | 2,679 | |
Income taxes | 844 | 1,040 | |
Total current liabilities | 23,245 | 27,336 | |
Long-term debt (Note 12) | 41,400 | 34,875 | |
Deferred income taxes | 1,710 | 1,956 | |
Employment costs | 1,984 | 1,984 | |
Income taxes and other liabilities | 1,489 | 1,841 | |
Total liabilities | 69,828 | 67,992 | |
Contingencies (Note 10) | |||
STOCKHOLDERS’ (DEFICIT) EQUITY | |||
Common stock, no par value (2,109,316,331 shares issued in 2023 and 2022) | 0 | 0 | |
Additional paid-in capital | 2,240 | 2,230 | |
Earnings reinvested in the business | 33,893 | 34,289 | |
Accumulated other comprehensive losses (Note 13) | (10,045) | (9,559) | |
Total stockholders' equity before treasury stock | 26,088 | 26,960 | |
Less: cost of repurchased stock (557,003,561 and 559,098,620 shares in 2023 and 2022, respectively) | 35,791 | 35,917 | |
Total PMI stockholders’ deficit | (9,703) | (8,957) | |
Noncontrolling interests | 1,743 | 2,646 | |
Total stockholders’ deficit | (7,960) | (6,311) | |
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ 61,868 | $ 61,681 | |
[1] Includes trade receivables from related parties of $709 million and $688 million as of June 30, 2023, and December 31, 2022, respectively (less allowances of $29 million as of June 30, 2023 and $7 million as of December 31, 2022). For further details, see Note 14. Related Parties - Equity Investments and Other. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Trade receivables, allowances | $ 65 | $ 42 | |
Other receivables, allowances | 34 | 32 | |
Other assets, allowances | $ 25 | $ 20 | |
Common stock, issued (in shares) | 2,109,316,331 | 2,109,316,331 | |
Repurchased stock (in shares) | 557,003,561 | 559,098,620 | |
Trade receivables, related parties | [1] | $ 4,110 | $ 3,850 |
Related Party | |||
Trade receivables, related parties | 709 | 688 | |
Related Party | |||
Trade receivables, allowances | $ 29 | $ 7 | |
[1] Includes trade receivables from related parties of $709 million and $688 million as of June 30, 2023, and December 31, 2022, respectively (less allowances of $29 million as of June 30, 2023 and $7 million as of December 31, 2022). For further details, see Note 14. Related Parties - Equity Investments and Other. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||
Net earnings | $ 3,784 | $ 4,811 | |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation, amortization and impairment of goodwill and other intangibles | 1,280 | 540 | |
Deferred income tax (benefit) provision | (211) | (88) | |
Asset impairment and exit costs, net of cash paid (Note 17) | 85 | (47) | |
Cash effects of changes, net of the effects from acquired companies: | |||
Receivables, net | [1] | (292) | (627) |
Inventories | (74) | 867 | |
Accounts payable | (414) | 174 | |
Accrued liabilities and other current assets | (1,603) | (869) | |
Income taxes | (509) | (424) | |
Pension plan contributions, net of refunds (Note 5) | (72) | ||
Pension plan contributions, net of refunds (Note 5) | 63 | ||
Other | 513 | 242 | |
Net cash provided by operating activities | 2,487 | 4,642 | |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | |||
Capital expenditures | (639) | (478) | |
Equity investments | (91) | (20) | |
Net investment hedges and other derivatives (Note 7) | (342) | 514 | |
Other | (2) | (71) | |
Net cash used in investing activities | (1,074) | (55) | |
Short-term borrowing activity by original maturity: | |||
Net issuances (repayments) - maturities of 90 days or less | 2,356 | 565 | |
Issuances - maturities longer than 90 days | 712 | 795 | |
Repayments - maturities longer than 90 days | (180) | (15) | |
Repayments under credit facilities related to Swedish Match AB acquisition | (4,430) | 0 | |
Long-term debt proceeds | 7,652 | 0 | |
Long-term debt repaid | (2,034) | (497) | |
Repurchases of common stock | 0 | (209) | |
Dividends paid | (3,964) | (3,897) | |
Noncontrolling interests activity and Other (Note 2) | (149) | (542) | |
Net cash used in financing activities | (920) | (3,800) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (198) | (244) | |
Cash, cash equivalents and restricted cash: | |||
Increase (Decrease) | [2] | 295 | 543 |
Balance at beginning of period | [2] | 3,217 | 4,500 |
Balance at end of period | [2] | 3,512 | 5,043 |
Swedish Match AB | |||
Short-term borrowing activity by original maturity: | |||
Payments to acquire Swedish Match AB noncontrolling interests (Note 2) | $ (883) | $ 0 | |
[1]Includes amounts from related parties of $(134) million and $(242) million for June 30, 2023 and 2022, respectively[2]The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $20 million and $7 million as of June 30, 2023 and 2022, respectively, and $10 million and $4 million as of December 31, 2022 and 2021, respectively, which were included in other current assets in the condensed consolidated balance sheets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Restricted cash | $ 20 | $ 7 | $ 10 | $ 4 | |
Receivables, net | [1] | 292 | 627 | ||
Related Party | |||||
Receivables, net | $ (134) | $ (242) | |||
[1]Includes amounts from related parties of $(134) million and $(242) million for June 30, 2023 and 2022, respectively |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested in the Business | Accumulated Other Comprehensive Losses | Cost of Repurchased Stock | Noncontrolling Interests |
Beginning balance at Dec. 31, 2021 | $ (8,208) | $ 0 | $ 2,225 | $ 33,082 | $ (9,577) | $ (35,836) | $ 1,898 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Purchase of subsidiary shares from noncontrolling interests (Note 2) | (30) | (171) | |||||
Ending balance at Mar. 31, 2022 | (8,203) | 0 | 2,118 | 33,468 | (9,760) | (35,924) | 1,895 |
Beginning balance at Dec. 31, 2021 | (8,208) | 0 | 2,225 | 33,082 | (9,577) | (35,836) | 1,898 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 4,811 | 4,564 | 247 | ||||
Other comprehensive earnings (losses), net of income taxes | 611 | 705 | (94) | ||||
Issuance of stock awards | 84 | (30) | 114 | ||||
Dividends declared | (3,891) | (3,891) | |||||
Dividends paid to noncontrolling interests | (257) | (257) | |||||
Common stock repurchased | (199) | (199) | |||||
Purchase of subsidiary shares from noncontrolling interests (Note 2) | (211) | (30) | (171) | (10) | |||
Ending balance at Jun. 30, 2022 | (7,260) | 0 | 2,165 | 33,755 | (9,043) | (35,921) | 1,784 |
Beginning balance at Mar. 31, 2022 | (8,203) | 0 | 2,118 | 33,468 | (9,760) | (35,924) | 1,895 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 2,346 | 2,233 | 113 | ||||
Other comprehensive earnings (losses), net of income taxes | 649 | 717 | (68) | ||||
Issuance of stock awards | 50 | 47 | 3 | ||||
Dividends declared | (1,946) | (1,946) | |||||
Dividends paid to noncontrolling interests | (156) | (156) | |||||
Ending balance at Jun. 30, 2022 | (7,260) | 0 | 2,165 | 33,755 | (9,043) | (35,921) | 1,784 |
Beginning balance at Dec. 31, 2022 | (6,311) | 0 | 2,230 | 34,289 | (9,559) | (35,917) | 2,646 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 3,784 | 3,563 | 221 | ||||
Other comprehensive earnings (losses), net of income taxes | (642) | (665) | 23 | ||||
Issuance of stock awards | 115 | (11) | 126 | ||||
Dividends declared | (3,959) | (3,959) | |||||
Dividends paid to noncontrolling interests | (318) | (318) | |||||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2) | (629) | 21 | 179 | (829) | |||
Ending balance at Jun. 30, 2023 | (7,960) | 0 | 2,240 | 33,893 | (10,045) | (35,791) | 1,743 |
Beginning balance at Mar. 31, 2023 | (7,053) | 0 | 2,188 | 34,303 | (9,614) | (35,801) | 1,871 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 1,682 | 1,568 | 114 | ||||
Other comprehensive earnings (losses), net of income taxes | (444) | (431) | (13) | ||||
Issuance of stock awards | 62 | 52 | 10 | ||||
Dividends declared | (1,978) | (1,978) | |||||
Dividends paid to noncontrolling interests | (225) | (225) | |||||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2) | (4) | (4) | |||||
Ending balance at Jun. 30, 2023 | $ (7,960) | $ 0 | $ 2,240 | $ 33,893 | $ (10,045) | $ (35,791) | $ 1,743 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 1.27 | $ 1.25 | $ 2.54 | $ 2.50 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Earnings (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||||
Net revenues, related parties | $ 8,967 | [1],[2] | $ 7,832 | [1],[2] | $ 16,986 | [3],[4] | $ 15,578 | [3],[4] |
Excise taxes on products | 12,749 | 12,577 | 24,048 | 24,172 | ||||
Goodwill and non-amortizable intangible assets impairment charge | 680 | 680 | ||||||
EA, AU & PMI DF | ||||||||
Net revenues, related parties | 1,680 | 1,464 | 3,200 | 3,051 | ||||
EA, AU & PMI DF | Korea | ||||||||
Non-cash pre-tax charge | 204 | 204 | ||||||
Related Party | ||||||||
Net revenues, related parties | $ 901 | $ 869 | $ 1,774 | $ 1,547 | ||||
[1]Includes net revenues from related parties of $901 million and $869 million for the three months ended June 30, 2023 and 2022, respectively[2]Net of excise taxes of $12,749 million and $12,577 million for the three months ended June 30, 2023 and 2022, respectively[3]Includes net revenues from related parties of $1,774 million and $1,547 million for the six months ended June 30, 2023 and 2022, respectively[4]Net of excise tax on products of $24,048 million and $24,172 million for the six months ended June 30, 2023 and 2022, respectively |
Background and Basis of Present
Background and Basis of Presentation: | 6 Months Ended |
Jun. 30, 2023 | |
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 smoke-free products. Throughout these financial statements, the term "PMI" refers to Philip Morris International Inc. and its subsidiaries. Smoke-free products ("SFPs") is the term PMI primarily uses to refer to all of its products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine. In addition, SFPs include wellness and healthcare products, as well as consumer accessories such as lighters and matches. 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. PMI's RRPs are smoke-free products that contain and/or generate far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke. "Platform 1" is the term PMI uses to refer to PMI’s reduced-risk product that uses a precisely controlled heating device into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol. Basis of Presentation The interim condensed consolidated financial statements of PMI are unaudited. These interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and such principles are applied on a consistent basis. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S.GAAP have been omitted. It is the opinion of PMI’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected therein. All such adjustments were of a normal recurring nature. Net revenues and net earnings attributable to PMI for any interim period are not necessarily indicative of results that may be expected for the entire year. In the fourth quarter of 2022, PMI acquired a controlling interest of the total issued shares in Swedish Match AB (“Swedish Match”). The operating results of Swedish Match are included in a separate segment. For further details, see Note 2. Acquisitions and Note 9. Segment Reporting . In the third quarter of 2021, PMI acquired Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. On March 31, 2022, PMI launched a Wellness and Healthcare business consolidating these entities, Vectura Fertin Pharma. The operating results of this business are reported in the Wellness and Healthcare segment. For further details, see Note 9. Segment Reporting . To further support the growth of PMI's smoke-free business, reinforce consumer centricity, and increase the speed of innovation and deployment, in January 2023, PMI began managing its business in four geographical segments, down from six previously, in addition to its continuing Swedish Match and Wellness and Healthcare segments. The four geographical segments are as follows: Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region ("SSEA, CIS & MEA"); East Asia, Australia, and PMI Duty Free Region ("EA, AU & PMI DF"); and Americas Region. Certain prior years' amounts have been reclassified to conform with the current year's presentation. As a result of the new regional structure discussed above, certain goodwill amounts under the former six geographical segments were reallocated to the four geographical segments under the new structure. For further details, see Note 6. Goodwill and Other Intangible Assets, net. Following the Swedish Match acquisition and a review of PMI and Swedish Match’s combined product portfolio, PMI reclassified certain of its own products previously reported under its combustible tobacco product category to the newly created smoke-free product category to better reflect the characteristics of these products. For further details, see Note 9. Segment Reporting. These reclassifications did not impact PMI’s consolidated financial position, results of operations or cash flows in any of the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and related notes, which appear in PMI’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Acquisitions_
Acquisitions: | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions: | Acquisitions: Transactions With Noncontrolling Interests Turkey – In the first quarter of 2022, PMI acquired the remaining 25% stake of its holding in Philip Morris Tütün Mamulleri Sanayi ve Ticaret A.Ş. ("PMTM") (formerly Philsa Philip Morris Sabanci Sigara ve Tütüncülük Sanayi ve Ticaret A.Ş.) and 24.75% stake in Philip Morris Pazarlama ve Satiş A.Ş. ("PMPS") (formerly Philip Morris SA, Philip Morris Sabanci Pazarlama ve Satiş A.Ş.) from its Turkish partners, Sabanci Holding for a total acquisition price including transaction costs and remaining dividend entitlements of approximately $223 million. As a result of this acquisition, PMI owned 100% of these Turkish subsidiaries as of December 31, 2022. The purchase of the remaining stakes in these holdings resulted in a decrease to PMI's additional paid-in capital of $30 million and an increase to accumulated other comprehensive losses of $171 million primarily following the reclassification of accumulated currency translation losses from noncontrolling interests to PMI’s accumulated other comprehensive losses during the first quarter of 2022. In January 2023, PMI sold the acquired stakes of its holdings in PMTM and PMPS to Pioneers Tutun Yatirim Anonim Sirketi (“Pioneers”) for a consideration of approximately $258 million, including transaction costs and dividend entitlements. The sale resulted in an increase to PMI's additional paid-in capital of $36 million and a decrease to accumulated other comprehensive losses of $179 million, following the reclassification of accumulated other comprehensive losses from PMI’s accumulated other comprehensive losses to noncontrolling interests. Business Combinations Swedish Match AB – On November 11, 2022 (the acquisition date), Philip Morris Holland Holdings B.V. (“PMHH”), a wholly owned subsidiary of PMI, acquired a controlling interest of 85.87% of the total issued shares in Swedish Match AB (“Swedish Match”) and acquired 94.81% of its outstanding shares as of December 31, 2022. The shares were acquired through acceptances of the tender offer and a series of open market and over-the-counter purchases. PMI funded the acquisition through cash on-hand and debt proceeds, as described in Note 12. Indebtedness. The aggregate cash paid as of the acquisition date was $14,460 million (or $13,976 million net of cash acquired), which was included in investing activities in the consolidated statements of cash flows for the year ended December 31, 2022. The cash paid in connection with the additional purchases of the noncontrolling interests after the acquisition date and through December 31, 2022 amounted to $1,495 million and was included in financing activities in the consolidated statements of cash flows for the year ended December 31, 2022. In accordance with the Swedish Companies Act, PMI subsequently exercised its right to compulsorily redeem the remaining shares for which acceptances were not received and obtained legal title to 100% of the shares in Swedish Match on February 17, 2023. Cash paid in connection with such legal title, together with an immaterial amount attributable to open market purchases that were executed in December 2022 but settled in January 2023, amounted to $883 million and was included in financing activities in the condensed consolidated statements of cash flows for the six months ended June 30, 2023. While we have paid the referenced amounts and have acquired legal title to the shares, the redemption process will not be complete under the Swedish Companies Act until a final redemption price is determined by an arbitral tribunal. This process may take 6 to 12 months to complete, but we believe the likelihood it will result in additional payments to be remote. Swedish Match is a market leader in oral nicotine delivery with a significant presence in the United States market. The acquisition will accelerate PMI’s transformation to become a smoke-free company with a comprehensive global smoke-free portfolio with leadership positions in heat-not-burn, and the fastest growing category of oral nicotine, with the potential for accelerated international expansion. Due to the timing of the acquisition, and limited access to detailed and disaggregated financial information of Swedish Match, the purchase price allocation is preliminary and it is likely subject to change, including the valuation of property, plant and equipment, intangible assets, income taxes and legal contingencies among other items. During the second quarter of 2023, PMI made certain measurement period adjustments to the purchase price allocation to reflect facts and circumstances in existence as of the acquisition date, which resulted in an increase in goodwill of $109 million. The increase was due to a decrease in other current assets of $109 million. PMI is still assessing information received, as of the acquisition date, and expects to complete this process by the end of the measurement period in November 2023. The following table summarizes the preliminary purchase price allocation for the fair value of assets acquired and liabilities assumed as of the acquisition date: (in millions) Cash and cash equivalents $ 484 Trade receivables 135 Other receivables 53 Inventories 444 Other current assets 415 Property, plant and equipment 627 Other intangible assets 4,512 Other non-current assets 214 Current portion of long-term debt 224 Accounts payable 120 Other current liabilities 531 Income taxes 14 Long-term debt 1,126 Deferred income taxes 1,253 Other non-current liabilities 187 Identifiable net assets acquired 3,429 Noncontrolling interest 2,379 Goodwill 13,410 Total consideration transferred $ 14,460 The total fair value step-up adjustment for inventories was $146 million, of which $125 million was recognized in cost of sales in the fourth quarter of 2022 and the remaining balance in the first quarter of 2023. The fair value of long-term debt was determined using readily available market prices as of the acquisition date and the total purchase price adjustment of $(102) million is being amortized as an increase to interest expense, net over the lives of the related debt. Goodwill is primarily attributable to future growth opportunities, anticipated synergies in the U.S. and intangible assets that did not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Identifiable intangible assets of Swedish Match consist of: Type Useful Life Estimated Fair Value (in millions) Trademarks Non-amortizable $ 2,077 Trademarks Amortizable 20 years 904 Developed technology, including patents 10 years 367 Customer relationships 10 years 1,164 Total identifiable intangible assets $ 4,512 The significant assumptions used in determining the preliminary fair values of the identifiable intangible assets included royalty rates, revenue growth rates, profit margins, customer attrition rate and discount rates. Trademarks primarily relate to $2,077 million for the ZYN trademark, which has been determined to have an indefinite life due to the fast growth and the leading position of the brand in the U.S. market. All other trademarks have been preliminarily determined to have a 20 years useful life. The preliminary fair values of the trademarks have been determined using the relief from royalty method supported by revenue growth rates assumptions and royalty rates benchmarking analysis at product category level (smoke-free brands, including ZYN , cigar brands and lights). In 2023, during the measurement period, the useful life, revenue growth rate and the royalty rate of each individual trademark will be reassessed to determine its final purchase price. Developed technology, including patents, relates to the nicotine pouch technology of $367 million. The patent has been assigned a useful life of 10 years, which is in line with the patent's protection. The preliminary fair value of the patent has been determined using the relief from royalty method. Customer relationships have been valued separately by geographic locations, namely for the U.S. market, Scandinavia, and other markets using the multiple periods excess earnings method, preliminarily reflecting a general market attrition rate for retail and revenue allocation and profit margin assumptions by customer type, which will be further assessed during the measurement period. PMI consolidated statements of earnings for the year ended December 31, 2022, include $316 million of net revenues and $(26) million of net losses associated with the results of operations of Swedish Match from the acquisition date to December 31, 2022. The operating results of Swedish Match are included in a separate segment. Acquisition related transaction costs, which were comprised primarily of regulatory, financial advisory and legal fees, totaled $59 million for the year ended December 31, 2022, and were included in marketing, administration and research costs in the consolidated statements of earnings. Bridge and term loan credit agreement related fees associated with the issuance of debt amounted to $54 million, of which $37 million were capitalized at the acquisition date. The fair value of the noncontrolling interest was based on the tender offer as of the acquisition date. Under the EU Merger Regulation, approval by the European Commission of PMI's acquisition of Swedish Match was conditional on PMHH's divestiture of Swedish Match's subsidiary, SMD Logistics AB ("SMDL"), following the completion of the offer to tender all shares in Swedish Match to PMHH. As a result, these assets were accounted for as assets held for sale and included within other current assets and other accrued liabilities in PMI’s condensed consolidated balance sheets at March 31, 2023 and December 31, 2022. PMI subsequently sold SMDL on June 30, 2023 and the transaction did not have a material impact on the condensed consolidated statements of earnings for the six months and three months ended June 30, 2023. The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of PMI and Swedish Match. In order to reflect the occurrence of the acquisition on January 1, 2021, as required, the unaudited pro forma financial information includes adjustments to reflect the following: • incremental amortization expense to be incurred based on the current preliminary fair values of the identifiable intangible assets acquired; • incremental cost of products sold related to the fair value adjustments associated with acquisition date inventory; • additional interest expense associated with the issuance of debt to finance the acquisition, including the effects of the related derivative financial instruments designated to hedge interest rate risks as well as economic hedges; • reclassification of non-recurring acquisition-related costs incurred during the year ended December 31, 2022, to the year ended December 31, 2021; • impact of a deferred tax cost of $430 million in 2022 and $321 million in 2021 related to the theoretical unrealized foreign currency gains on intercompany loans related to the acquisition financing. These theoretical unrealized pre-tax foreign currency movements were fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in PMI's consolidated statements of stockholders' (deficit) equity, while the corresponding deferred tax impacts were reflected in PMI's consolidated statements of earnings; and • other immaterial items (i.e., the alignment of accounting policies from IFRS to US GAAP.) The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. The unaudited pro forma financial information is as follows: For the Years Ended December 31, (in millions) 2022 2021 Net revenues $ 33,690 $ 33,577 Net earnings attributable to PMI $ 8,875 $ 8,610 Altria Group, Inc. Agreement On October 20, 2022, PMI announced that it had reached an agreement with Altria Group, Inc. ("Altria") to end the companies' relationship regarding the IQOS commercialization rights in the U.S. as of April 30, 2024. As a result of PMI reacquiring these rights, effective May 1, 2024, PMI will have the full rights to commercialize IQOS in the U.S. As part of the agreement, PMI agreed to pay a total cash consideration of $2.7 billion, with $1.0 billion paid at the inception of the agreement and the remaining $1.7 billion (plus interest, at a per annum rate equal to six percent (6%)), to be paid by July 2023 at the latest. The cash consideration paid at the inception of the agreement of $1.0 billion has been accounted for within other assets in PMI’s condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022. The remaining consideration of $1.7 billion plus interest was paid to Altria on July 14, 2023 and will be accounted for within other assets in PMI's condensed consolidated balance sheets as of September 30, 2023. PMI will finalize the accounting for this transaction by assigning the consideration to the respective assets in May 2024, when PMI can exercise its ability to commercialize IQOS |
War in Ukraine_
War in Ukraine: | 6 Months Ended |
Jun. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
War in Ukraine: | War in Ukraine: Since the onset of the war in Ukraine in February 2022, PMI's main priority has been the safety and security of its more than 1,300 employees and their families in the country. Ukraine PMI temporarily suspended its commercial and manufacturing operations in Ukraine, including the closing of its factory in Kharkiv at the end of February 2022, in order to preserve the safety of its employees. PMI subsequently resumed some retail activities where safety allowed, in order to provide product availability and service to adult consumers, and began to supply the market from production centers outside Ukraine, as well as through a contract manufacturing arrangement. Production at the factory in Kharkiv remains suspended. While the effects of the war are unpredictable and could trigger impairment reviews for long-lived assets, as of June 30, 2023, PMI is unable to estimate the information required to perform impairment analyses (i.e., forecast of revenues, manufacturing and commercial plans). PMI is not aware of any major damage to its production facilities, inventories or other assets in Ukraine. As a result, PMI has not recorded an impairment of long-lived assets. As of June 30, 2023, PMI’s Ukrainian operations had approximately $497 million in total assets, excluding intercompany balances. These total assets included $75 million, $305 million and $29 million in receivables, inventories and property, plant and equipment, respectively. Russia PMI has suspended its planned investments in the Russian Federation including all new product launches and commercial, innovation, and manufacturing investments. PMI has also taken steps to scale down its manufacturing operations in Russia amid ongoing supply chain disruptions and the evolving regulatory environment. PMI is continuously assessing the evolving situation in Russia, including recent regulatory constraints in the market that entail very complex terms and conditions that must be met for any divestment transaction to be granted approval by the authorities, and restrictions resulting from international regulations. As a result of PMI continuing operations within Russia as of June 30, 2023, it has not recorded an impairment of long-lived and other assets. However, PMI recorded specific asset write downs as referred to in the table below. PMI’s Russian operations as of June 30, 2023 had approximately $2.4 billion in total assets, excluding intercompany balances. These total assets included $561 million, $465 million, $932 million, $272 million and $164 million in cash (primarily held in local currency), receivables, inventories, property, plant and equipment and goodwill, respectively. In addition, there was approximately $1,132 million of cumulative foreign currency translation losses reflected in accumulated other comprehensive losses in the condensed consolidated statement of stockholders’ equity as of June 30, 2023. During the six months and three months ended June 30, 2023, PMI did not record any material charges related to the war in Ukraine. During the six months and three months ended June 30, 2022, PMI recorded in its condensed consolidated statements of earnings pre-tax charges related to circumstances driven by the war as follows: (in millions) For the Six Months Ended June 30, 2022 For the Three Months Ended June 30, 2022 Cost of sales Marketing, administration and research costs Total Cost of sales Marketing, administration and research costs Total Ukraine 1 $ 25 $ 26 $ 51 $ 14 $ 10 $ 24 Russia 2 21 50 71 6 50 56 Total $ 46 $ 76 $ 122 $ 20 $ 60 $ 80 1 The pre-tax charges were primarily due to an inventory write down, additional allowance for receivables and the cost of PMI’s humanitarian efforts, which includes salary continuation for its employees. 2 The pre-tax charges were primarily due to machinery and inventory write downs related to the commercial decisions noted above. PMI will continue to monitor the situation as it evolves and will determine if further charges are needed. |
Stock Plans_
Stock Plans: | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans: | Stock Plans: In May 2022, PMI’s shareholders approved the Philip Morris International Inc. 2022 Performance Incentive Plan (the “2022 Plan”). Under the 2022 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 2022 Plan. At June 30, 2023, shares available for grant under the 2022 Plan were 22,146,010. In May 2017, PMI’s shareholders approved the Philip Morris International Inc. 2017 Stock Compensation Plan for Non-Employee Directors (the “2017 Non-Employee Directors Plan”). A non-employee director is defined as a member of the PMI Board of Directors who is not a full-time employee of PMI or of any corporation in which PMI owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation. Up to 1 million shares of PMI common stock may be awarded under the 2017 Non-Employee Directors Plan. At June 30, 2023, shares available for grant under the plan were 876,226. Restricted share unit (RSU) awards During the six months ended June 30, 2023 and 2022, shares granted to eligible employees and the weighted-average grant date fair value per share related to RSU awards were as follows: Number of Weighted-Average Grant Date Fair Value Per RSU Award Granted 2023 1,752,050 $ 101.98 2022 1,575,500 $ 104.99 Compensation expense related to RSU awards was as follows: Compensation Expense Related to RSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 86 $ 36 2022 $ 74 $ 35 As of June 30, 2023, PMI had $240 million of total unrecognized compensation cost related to non-vested RSU awards. The cost is recognized over the original restriction period of the awards, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. During the six months ended June 30, 2023, 1,346,307 RSU awards vested. The grant date fair value of all the vested awards was approximately $117 million. The total fair value of RSU awards that vested during the six months ended June 30, 2023 was approximately $135 million. Performance share unit (PSU) awards During the six months ended June 30, 2023 and 2022, PMI granted PSU awards to certain executives. The PSU awards require the achievement of certain performance metrics, which are predetermined at the time of grant, typically over a three-year performance cycle. The performance metrics for such PSU's granted during the six months ended June 30, 2023 and 2022 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 a Sustainability Index, which consists of two drivers: • Product Sustainability (20% weight) measuring progress on PMI's efforts to maximize the benefits of smoke-free products, purposefully phase out cigarettes, seek net positive impact in wellness and healthcare, and reduce post-consumer waste; and • Operational Sustainability (10% weight) measuring progress on PMI's efforts to tackle climate change, preserve nature, improve the quality of life of people in its supply chain, and foster an empowered, and inclusive workplace. The aggregate of the weighted performance factors for the three metrics in each such PSU award determines the percentage of PSUs that will vest at the end of the three-year performance cycle. The minimum percentage of such PSUs that can vest is zero, with a target percentage of 100 and a maximum percentage of 200. Each such vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned. During the six months ended June 30, 2023 and 2022, shares granted to eligible employees and the grant date fair value per share related to PSU awards were as follows: Number of Shares Granted Weighted- Weighted- (Per Share) (Per Share) 2023 482,360 $ 102.02 $ 133.54 2022 451,790 $ 105.07 $ 143.94 The grant date fair value of the PSU awards subject to the other performance factors was determined by using the market price of PMI’s stock on 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: 2023 2022 Average risk-free interest rate (a) 4.1 % 1.6 % Average expected volatility (b) 24.3 % 28.6 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. Compensation expense related to PSU awards was as follows: Compensation Expense Related to PSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 45 $ 18 2022 $ 31 $ 10 As of June 30, 2023, PMI had $60 million of total unrecognized compensation cost related to non-vested PSU awards. The cost is recognized over the performance cycle of the awards, or upon death, disability or reaching the age of 58. During the six months ended June 30, 2023, 902,232 PSU awards vested. The grant date fair value of all the vested awards was approximately $83 million. The total fair value of PSU awards that vested during the six months ended June 30, 2023 was approximately $91 million. |
Benefit Plans_
Benefit Plans: | 6 Months Ended |
Jun. 30, 2023 | |
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 certain U.S. retired employees and certain non-U.S. retired employees. In general, health care benefits for non-U.S. retired employees are covered through local government plans. Pension and other employee benefit costs per the condensed consolidated statements of earnings consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Net pension costs (income) $ (37) $ (49) $ (25) $ (24) Net postemployment costs 59 54 29 27 Net postretirement costs 6 4 2 2 Total pension and other employee benefit costs $ 28 $ 9 $ 6 $ 5 Pension Plans Components of Net Periodic Benefit Cost Net periodic pension cost consisted of the following: Pension (1) For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Service cost $ 85 $ 119 $ 42 $ 59 Interest cost 129 38 63 18 Expected return on plan assets (181) (180) (91) (88) Amortization: Net loss 16 94 4 46 Prior service cost (credit) (1) (1) (1) — Net periodic pension cost $ 48 $ 70 $ 17 $ 35 (1) Primarily non-U.S. based defined benefit retirement plans. Employer Contributions PMI makes, and plans to make, contributions, to the extent that they are tax deductible and meet specific funding requirements of its funded pension plans. Employer contributions of $72 million were made to the pension plans during the six months ended June 30, 2023. Currently, PMI anticipates making additional contributions during the remainder of 2023 of approximately $56 million to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest and currency rates. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net: | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net: | Goodwill and Other Intangible Assets, net: Annual impairment review of goodwill and non-amortizable intangible assets During the second quarter of 2023, PMI completed its annual review of goodwill and non-amortizable intangible assets for potential impairment. Based on this review, it was determined that the estimated fair value of the Wellness and Healthcare reporting unit was lower than its carrying value. Consequently, PMI recorded a goodwill impairment charge of $665 million, reflecting the impact of reduced estimated future cash flows, which were primarily attributable to clinical trial results that became available in June 2023 for an inhalable aspirin product being developed by the Wellness and Healthcare business. While it was observed that the experimental product had a rapid onset of effect, which is the key medical advantage sought, there was significant variability in inhaled dose among subjects. The study was therefore deemed unsuccessful and, as a result, product design improvements are required. PMI had planned to file a new drug application for this product with the U.S. Food and Drug Administration later this year. However, additional time is now required to evaluate design improvements and the corresponding less certain outcome. The cash flow estimates were also adversely impacted by slower-than-anticipated development of the contract development and manufacturing organization ("CDMO") business, including challenges associated with increased cost related to certain key products. Additionally, as a result of the impairment test of non-amortizable intangible assets, PMI recorded a pre-tax impairment charge of $15 million for an in-process research and development project related to one of PMI's 2021 acquisitions. These impairment charges were recorded within marketing, administration and research costs in the consolidated statements of earnings for the six months and three months ended June 30, 2023. The goodwill impairment charge is not deductible for income tax purposes. The Wellness and Healthcare reporting unit's fair value was determined using the discounted cash flow model. PMI will continue to monitor this reporting unit as any changes in assumptions and estimates, unfavorable clinical trial results, failure to obtain regulatory approvals or other market factors could result in additional future goodwill and other intangible asset impairments. Certain Wellness and Healthcare products include components or gases which may be subject to enhanced climate change regulations that could impact the related product development and market strategies. This may also lead to supply disruptions that could result in additional future impairments. While PMI’s remaining reporting units have fair values substantially in excess of their carrying values, there are still risks related to PMI’s Russian reporting unit’s assets as the fair value of these assets is difficult to predict due to the volatility in foreign currency and commodity markets, supply chain, and current economic, political and social conditions. For more information see Note 3. War in Ukraine . PMI has performed a quantitative impairment assessment for all of its reporting units and non-amortizable intangible assets with the exception of the Swedish Match segment. As the purchase price allocation for the acquisition of Swedish Match is preliminary, PMI has performed a qualitative impairment assessment and concluded that it was not more likely than not that the fair value of the Swedish Match reporting units and its non-amortizable intangible assets were less than the respective carrying amounts. Goodwill The movements in goodwill were as follows: (in millions) Europe SSEA, CIS & MEA EA, AU & PMI DF Americas Swedish Match Wellness & Healthcare Total Balances at December 31, 2022 $ 1,370 $ 2,869 $ 493 $ 615 $ 13,296 $ 1,012 $ 19,655 Changes due to: Impairment — — — — — (665) (665) Currency 48 68 6 71 (94) 38 137 Other — — — — 109 — 109 Balances, June 30, 2023 $ 1,418 $ 2,937 $ 499 $ 686 $ 13,311 $ 385 $ 19,236 As discussed in Note 1. Background and Basis of Presentation , in January 2023, PMI began managing its business in four geographical segments, Swedish Match segment and Wellness and Healthcare segment. As a result, the December 31, 2022 goodwill balance in the table above included the reclassifications from the former six geographical segments to the four geographical segments under the new structure. The decrease in goodwill was primarily due to the impairment discussed above, partially offset by currency movements and the measurement period adjustment to the Swedish Match preliminary purchase price allocation. For further details on the Swedish Match acquisition, see Note 2, Acquisitions . At June 30, 2023, goodwill primarily reflects PMI’s business combinations in Greece, Indonesia, Mexico, the Philippines and Serbia, as well as the goodwill from the 2021 acquisitions of Fertin Pharma A/S and Vectura Group plc. and the preliminary purchase price allocation of Swedish Match AB, which was acquired in the fourth quarter of 2022. Other Intangible Assets Details of other intangible assets were as follows: June 30, 2023 December 31, 2022 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 3,418 $ 3,418 $ 3,346 $ 3,346 Amortizable intangible assets: Trademarks 15 years 2,028 $ 720 1,308 2,050 $ 674 1,376 Developed technology, including patents 8 years 994 296 698 975 243 732 Customer relationships and other 10 years 1,384 178 1,206 1,390 112 1,278 Total other intangible assets $ 7,824 $ 1,194 $ 6,630 $ 7,761 $ 1,029 $ 6,732 Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico, as well as the preliminary purchase price allocation associated with the Swedish Match acquisition in 2022, and PMI's business combinations in 2021 (primarily in-process research and development). The increase since December 31, 2022 was due to currency movements of $87 million, partially offset by an impairment for an in-process research and development project related to one of PMI's 2021 acquisitions discussed above. The decrease in the gross carrying amount of amortizable intangible assets from December 31, 2022, was due to currency movements of $9 million. The change in the accumulated amortization from December 31, 2022, was mainly due to the 2023 amortization of $163 million, combined with currency movements of $2 million. The amortization of intangibles for the six months ended June 30, 2023 was recorded in cost of sales ($44 million) and in marketing, administration and research costs ($119 million) on PMI's condensed consolidated statements of earnings. |
Financial Instruments_
Financial Instruments: | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments: | Financial Instruments: Overview PMI operates in markets primarily outside of the United States of America, with manufacturing and sales facilities in various locations around the world and is exposed to risks such as changes in foreign currency exchange rates and interest rates. As a result, PMI uses deliverable and non-deliverable forward foreign exchange contracts, foreign currency swaps and foreign currency options (collectively referred to as "foreign exchange contracts"), and interest rate contracts to mitigate its exposure to changes in foreign currency exchange and interest rates related to net investments in foreign operations, third-party and intercompany actual and forecasted transactions. The primary currencies to which PMI is exposed include the Euro, Egyptian pound, Indonesian rupiah, Japanese yen, Mexican peso, Philippine peso, Russian ruble and Swiss franc. Additionally, certain materials that PMI uses in the manufacturing of its products are exposed to market price risks. PMI uses commodity derivative contracts (“commodity contracts") to manage its exposure to the market price volatility of certain commodity components of these materials. These foreign exchange contracts, interest rate contracts and commodity contracts are collectively referred to as "derivative contracts". 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. The gross notional amounts for outstanding derivatives at the end of each period were as follows: (in millions) At June 30, 2023 At December 31, 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts $ 19,687 $ 17,627 Interest rate contracts 1,000 1,019 Commodity contracts 26 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts 20,431 21,755 Total $ 41,144 $ 40,401 The fair value of PMI’s derivative contracts included in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value At At At At (in millions) Balance Sheet Classification June 30, 2023 December 31, 2022 Balance Sheet Classification June 30, 2023 December 31, 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts Other current assets $ 357 $ 376 Other accrued liabilities $ 265 $ 126 Other assets 327 341 Income taxes and other liabilities 216 147 Interest rate contracts Other current assets — — Other accrued liabilities 38 27 Other assets — — Income taxes and other liabilities 43 56 Commodity contracts Other current assets — — Other accrued liabilities 1 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts Other current assets 82 156 Other accrued liabilities 203 165 Other assets — — Income taxes and other liabilities 86 16 Total gross amount derivatives contracts presented in the condensed consolidated balance sheets $ 766 $ 873 $ 852 $ 537 Gross amounts not offset in the condensed consolidated balance sheets Financial instruments (355) (346) (355) (346) Cash collateral received/pledged (240) (341) (173) (48) Net amount $ 171 $ 186 $ 324 $ 143 PMI assesses the fair value of its derivative 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. The fair value of PMI’s commodity contracts is determined by using the prevailing market spot and futures prices and the respective maturity dates of the instruments. PMI’s derivative contracts have been classified within Level 2 at June 30, 2023 and December 31, 2022. For the six months ended June 30, 2023 and 2022, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Six Months Ended June 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2023 2022 2023 2022 2023 2022 Derivative contracts designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 223 $ 248 Net revenues $ 39 $ 81 Cost of sales — — Marketing, administration and research costs 71 (10) Interest expense, net (6) (3) Interest rate contracts 72 107 Interest expense, net 22 (4) Commodity contracts (1) — Cost of sales — — Fair value hedges: Interest rate contracts Interest expense, net (a) $ (14) $ (57) Net investment hedges (b) : Foreign exchange contracts (439) 530 Interest expense, net (c) 127 68 Derivative contracts not designated as hedging instruments: Foreign exchange contracts Interest expense, net 152 43 Marketing, administration and research costs (d) (104) 65 Total $ (145) $ 885 $ 126 $ 64 $ 161 $ 119 (a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item (b) 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 (c) Represent the gains for amounts excluded from the effectiveness testing (d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are partially offset by the (losses) and gains generated by the underlying intercompany and third-party loans being hedged For the three months ended June 30, 2023 and 2022, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Three Months Ended June 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2023 2022 2023 2022 2023 2022 Derivative contracts designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 213 $ 169 Net revenues $ 27 $ 64 Cost of sales — — Marketing, administration and research costs 55 (7) Interest expense, net (3) (2) Interest rate contracts 7 56 Interest expense, net 12 (2) Commodity contracts (1) — Cost of sales — — Fair value hedges: Interest rate contracts Interest expense, net (a) $ (17) $ (20) Net investment hedges (b) : Foreign exchange contracts (181) 425 Interest expense, net (c) 64 35 Derivative contracts not designated as hedging instruments: Foreign exchange contracts Interest expense, net 62 35 Marketing, administration and research costs (d) (88) 66 Total $ 38 $ 650 $ 91 $ 53 $ 21 $ 116 (a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item (b) 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 (c) Represent the gains for amounts excluded from the effectiveness testing (d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are partially offset by 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, interest rate and commodity price risks related to certain forecasted transactions. Gains and losses associated with qualifying cash flow hedge contracts are deferred as components of accumulated other comprehensive losses until the underlying hedged transactions are reported in PMI’s condensed consolidated statements of earnings. As of June 30, 2023, PMI has hedged forecasted transactions with derivative contracts expiring at various dates through May 2028. The impact of these hedges is primarily included in operating cash flows on PMI’s condensed 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 June 30, 2023 was $915 million, and is recorded in long-term debt in the condensed consolidated balance sheets. The cumulative amount of fair value gains/(losses) included in the carrying amount of the debt hedged was $81 million as of June 30, 2023. Hedges of Net Investments in Foreign Operations PMI designates derivative contracts and certain foreign currency denominated debt and other financial instruments as net investment hedges, primarily of its Euro net assets. For the six months ended June 30, 2023 and 2022, the amount of pre-tax gain/(loss) related to the non-derivative financial instruments, that was reported as a component of accumulated other comprehensive losses within currency translation adjustments, was $24 million and $258 million, respectively. For the three months ended June 30, 2023 and 2022, the amount of pre-tax gain/(loss) related to the non-derivative financial instruments, that was reported as a component of accumulated other comprehensive losses within currency translation adjustments, was $23 million and $192 million, respectively. The premiums paid for, and settlements of, net investment hedges are included in investing cash flows on PMI’s condensed consolidated statements of cash flows. Other Derivatives PMI has entered into derivative contracts to hedge the foreign currency exchange and interest rate risks related to intercompany loans between certain subsidiaries, third-party loans and acquisition related transactions. While effective as economic hedges, no hedge accounting is applied for these contracts; therefore, the gains (losses) relating to these contracts are reported in PMI’s condensed consolidated statements of earnings. Acquisition related transactions are included in investing cash flows on PMI’s condensed consolidated statements of cash flows. Qualifying Hedging Activities Reported in Accumulated Other Comprehensive Losses Derivative gains or losses reported in accumulated other comprehensive losses are a result of qualifying hedging activity. Transfers of these gains or losses to earnings are offset by the corresponding gains or losses on the underlying hedged item. Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Gain/(loss) as of beginning of period, $ 266 $ 4 $ 296 $ 105 Derivative (gains)/losses transferred to earnings (104) (55) (75) (46) Change in fair value 246 301 187 191 Gain/(loss) as of June 30, $ 408 $ 250 $ 408 $ 250 At June 30, 2023, PMI expects $174 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the condensed consolidated statement of earnings within the next 12 months. These gains are expected to be substantially offset by the statement of earnings impact of the respective hedged transactions. Contingent Features PMI’s derivative instruments do not contain contingent features. Credit Exposure and Credit Risk PMI is exposed to credit loss in the event of non-performance by counterparties. While PMI does not anticipate non-performance, its risk is limited to the fair value of the financial instruments less any cash collateral received or pledged. PMI actively monitors its exposure to credit risk through the use of credit approvals and credit limits and by selecting and continuously monitoring a diverse group of major international banks and financial institutions as counterparties. Other Investments |
Earnings Per Share_
Earnings Per Share: | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share: | Earnings Per Share: Basic and diluted earnings per share (“EPS”) were calculated using the following: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Net earnings attributable to PMI $ 3,563 $ 4,564 $ 1,568 $ 2,233 Less distributed and undistributed earnings attributable to share-based payment awards 11 13 5 7 Net earnings for basic and diluted EPS $ 3,552 $ 4,551 $ 1,563 $ 2,226 Weighted-average shares for basic EPS 1,552 1,550 1,552 1,551 Plus contingently issuable performance stock units (PSUs) 1 2 1 1 Weighted-average shares for diluted EPS 1,553 1,552 1,553 1,552 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. For the 2023 and 2022 computations, there were no antidilutive stock awards. |
Segment Reporting_
Segment Reporting: | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting: | Segment Reporting: PMI’s subsidiaries and affiliates are primarily engaged in the manufacture and sale of cigarettes and smoke-free products, including heat-not-burn, e-vapor and oral nicotine products. Excluding the Wellness and Healthcare segment and the 2022 acquisition of Swedish Match, 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 tobacco and smoke-free product categories sold in the region. Effective in January 2023, PMI began managing its business in four geographical segments, down from six previously, in addition to its continuing Swedish Match and Wellness and Healthcare segments. The four geographical segments are as follows: Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region ("SSEA, CIS & MEA"); East Asia, Australia, and PMI Duty Free Region ("EA, AU & PMI DF"); and Americas Region. PMI records net revenues and operating income to its geographical segments based upon the geographic area in which the customer resides. 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, excluding Swedish Match and Wellness and Healthcare products. Business operations in the Swedish Match segment and the Wellness and Healthcare segment are evaluated separately. PMI disaggregates its net revenues from contracts with customers by product category for each of PMI's four geographical segments and for the Swedish Match segment. For the Wellness and Healthcare business, Vectura Fertin Pharma, net revenues from contracts with customers are included in the Wellness and Healthcare segment. PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Segment data were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Net revenues: Europe $ 6,312 $ 6,533 $ 3,402 $ 3,309 SSEA, CIS & MEA 5,145 4,959 2,668 2,514 EA, AU & PMI DF 3,200 3,051 1,680 1,464 Americas 921 893 476 469 Swedish Match 1,246 — 665 — Wellness and Healthcare 162 142 76 76 Net revenues $ 16,986 $ 15,578 $ 8,967 $ 7,832 Operating income (loss): Europe $ 2,738 $ 3,032 $ 1,563 $ 1,474 SSEA, CIS & MEA 1,570 1,923 858 958 EA, AU & PMI DF 1,167 1,213 544 528 Americas 136 251 70 130 Swedish Match 457 — 264 — Wellness and Healthcare (771) (65) (733) (34) Operating income $ 5,297 $ 6,354 $ 2,566 $ 3,056 PMI's net revenues by product category were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Net revenues: Combustible tobacco products: Europe $ 3,924 $ 3,999 $ 2,108 $ 2,062 SSEA, CIS & MEA 4,504 4,398 2,350 2,203 EA, AU & PMI DF 1,412 1,523 724 754 Americas 889 846 459 444 Swedish Match 284 — 149 — Total combustible tobacco products 11,013 10,766 5,790 5,463 Smoke-free products: Smoke-free products excluding Wellness and Healthcare: Europe 2,388 2,534 1,294 1,247 SSEA, CIS & MEA 641 561 318 311 EA, AU & PMI DF 1,788 1,528 956 710 Americas 32 47 17 25 Swedish Match 962 — 516 — Total smoke-free products excluding Wellness and Healthcare 5,811 4,670 3,101 2,293 Wellness and Healthcare 162 142 76 76 Total smoke-free products 5,973 4,812 3,177 2,369 Total PMI net revenues $ 16,986 $ 15,578 $ 8,967 $ 7,832 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Items affecting the comparability of results from operations were as follows: • Impairment of goodwill and other intangibles – See Note 6. Goodwill and Other Intangible Assets, ne t for the details of the $680 million goodwill and non-amortizable intangible assets impairment charges included in the Wellness and Healthcare segment for the six months and three months ended June 30, 2023. • South Korea indirect tax charge – See Note 10. Contingencies for details of the $204 million pre-tax charge included in the EA, AU & PMI DF segment results for the six months and three months ended June 30, 2023. • Termination of distribution arrangement in the Middle East – In the first quarter of 2023, PMI recorded a pre-tax charge of $80 million following the termination of a distribution arrangement in the Middle East. This pre-tax charge was recorded as a reduction of net revenues in the condensed consolidated statements of earnings, and was included in the SSEA, CIS & MEA segment results for the six months ended June 30, 2023. • Charges related to the war in Ukraine – See Note 3. War in Ukraine for details of the $122 million and $80 million pre-tax charges in the Europe segment for the six months and three months ended June 30, 2022, respectively. • Swedish Match AB acquisition accounting related item – See Note 2 . Acquisitions for details of the $18 million pre-tax purchase accounting adjustments related to the sale of acquired inventories stepped up to fair value included in the Swedish Match segment for the six months ended June 30, 2023. • Asset impairment and exit costs – See Note 17. Asset Impairment and Exit Costs for details of the $109 million pre-tax charge for the six months ended June 30, 2023, as well as a breakdown of these costs by segment. Following the Swedish Match acquisition and a review of PMI and Swedish Match’s combined product portfolio, PMI reclassified certain of its own products previously reported under its combustible tobacco product category to the newly created smoke-free product category to better reflect the characteristics of these products. This reclassification did not impact PMI’s consolidated financial position, results of operations or cash flows in any of the periods presented. Net revenues related to combustible tobacco 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 that are combusted. Other tobacco products primarily include roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos, and do not include smoke-free products. Net revenues related to smoke-free 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, if applicable. These net revenue amounts consist of the sale of all of PMI's products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine, also including wellness and healthcare products, as well as consumer accessories such as lighters and matches. Net revenues related to wellness and healthcare products primarily consist of operating revenues generated from the sale of products primarily associated with inhaled therapeutics, and oral and intra-oral delivery systems that are included in the operating results of PMI's Wellness and Healthcare business, Vectura Fertin Pharma. |
Contingencies_
Contingencies: | 6 Months Ended |
Jun. 30, 2023 | |
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 10. 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. RBH's financial results have been deconsolidated from our consolidated financial statements since March 22, 2019. As part of the CCAA proceedings, there is currently a comprehensive stay up to and including September 29, 2023 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 Canada 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 (approximately $11.7 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 (approximately $2.3 billion), including pre-judgment interest). In addition, the trial court awarded CAD 90,000 (approximately $68,000) in punitive damages, allocating CAD 30,000 (approximately $23,000) 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 $171 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 $573 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 (approximately $10.2 billion), including interest 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 (approximately $2.0 billion), including pre-judgment interest). 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 $832 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 $99 million) in punitive damages, allocating CAD 46 million (approximately $35 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 (approximately $43 million), including interest to RBH. See the Blais description above 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 among 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 June 30, 2023, and June 30, 2022: Type of Case 1 Number of Cases Pending as of June 30, 2023 Number of Cases Pending as of June 30, 2022 Individual Smoking and Health Cases 50 40 Smoking and Health Class Actions 9 9 Health Care Cost Recovery Actions 17 17 Label-Related Class Actions — — Individual Label-Related Cases 5 5 Public Civil Actions 1 1 ______ ¹ Includes cases pending in Canada. Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 532 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. Fifteen cases have had decisions in favor of plaintiffs. Ten of these cases have subsequently reached final resolution in our favor and five remain on appeal, or are subject to an appeal, or our subsidiary may file an appeal. The table below lists the verdict and significant post-trial developments in the five 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 $11.7 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 $2.3 billion)). The trial court awarded CAD 90,000 (approximately $68,000) in punitive damages, allocating CAD 30,000 (approximately $23,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $756 million) of the compensatory damage award, CAD 200 million (approximately $151 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 $99 million) in punitive damages, allocating CAD 46 million (approximately $35 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 $408), 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 $557), in compensatory and moral damages, and ARS 4,000,000 (approximately $14,854) 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 $22,705), into a court escrow account. Our subsidiary challenged the amount determined by the court. The Civil and Commercial Court of Appeals of Mar del Plata 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 $3,318) was returned to our subsidiary. If our subsidiary ultimately prevails, the remaining deposited amounts will be returned to our subsidiary. On May 31, 2022, the Civil and Commercial Court of Appeals of Mar del Plata ruled that the statute of limitations barred plaintiff's claim and reversed the trial court's decision. On June 15, 2022, plaintiff filed an extraordinary appeal. Date Location of Type of Verdict Post-Trial June 23, 2023 Turkey/ Senem Yilmazel Individual Action On June 23, 2023, the Ankara Consumer Court published its decision in favor of plaintiff, the daughter of an individual smoker, against our subsidiary and a BAT subsidiary, awarding her TRY 10,000 (approximately $370) in damages. The trial court found that the plaintiff’s father died as a result of lung cancer and COPD caused by his cigarette consumption. 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 June 30, 2023, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 50 cases brought by individual plaintiffs in Argentina (31), Australia (1), Canada (2), Chile (13), the Philippines (1), Turkey (1) and Scotland (1), compared with 40 such cases on June 30, 2022; and • 9 cases brought on behalf of classes of individual plaintiffs, compared with 9 such cases on June 30, 2022. 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 cigare |
Income Taxes_
Income Taxes: | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes: | Income Taxes: Income tax provisions for jurisdictions outside the United States of America, as well as state and local income tax provisions, were determined on a separate company basis, and the related assets and liabilities were recorded in PMI’s condensed consolidated balance sheets. PMI’s effective tax rates for the six months and three months ended June 30, 2023 were 20.8% and 24.7%, respectively. PMI’s effective tax rates for the six months and three months ended June 30, 2022 were 20.0% and 20.3%, respectively. The effective tax rate for the six months ended June 30, 2023, was unfavorably impacted by the non-deductible Wellness and Healthcare goodwill impairment charge, partially offset by a deferred tax benefit for unrealized foreign currency losses on intercompany loans related to the Swedish Match acquisition financing reflected in the condensed consolidated statements of earnings ($96 million), while the underlying pre-tax foreign currency movements fully offset in the condensed consolidated statements of earnings and were reflected as currency translation adjustments in its condensed consolidated statements of stockholders' (deficit) equity. The effective tax rate for the six months ended June 30, 2022, was favorably impacted by a reduction in deferred tax liabilities related to pension plan assets ($40 million), as well as a decrease in deferred tax liabilities related to the fair value adjustment of equity securities held by PMI ($13 million). For further details, see Note 14. Related Parties - Equity Investments and Other . PMI estimates that its full-year 2023 effective tax rate will be 20.5% to 21.5%, excluding discrete tax events. Changes in currency exchange rates, earnings mix by taxing jurisdiction or future legislative or regulatory developments may have an impact on the effective tax rates, which PMI monitors each quarter. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI is regularly examined by tax authorities around the world and is currently under examination in a number of jurisdictions. The U.S. federal statute of limitations remains open for the years 2019 and onward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 3 to 5 years. 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 in the period of payment) 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 condensed consolidated balance sheets at June 30, 2023 and December 31, 2022, and negatively impacted net cash provided by operating activities in the consolidated statements of cash flows in the period of payment. |
Indebtedness_
Indebtedness: | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Indebtedness: | Indebtedness: Short-term Borrowings: At June 30, 2023 and December 31, 2022, PMI’s short-term borrowings and related average interest rates consisted of the following: June 30, 2023 December 31, 2022 (in millions) Amount Outstanding Average Rate Amount Outstanding Average Rate Commercial paper $ 3,975 5.2 % $ 912 4.4 % Bank loans 146 8.1 295 7.5 U.S. dollar credit facility borrowings related to Swedish Match AB acquisition — — 4,430 4.9 $ 4,121 $ 5,637 Given the mix of PMI's legal entities 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, based on current market interest rates, approximate carrying value. Long-term Debt: At June 30, 2023 and December 31, 2022, PMI’s long-term debt consisted of the following: (in millions) June 30, 2023 December 31, 2022 U.S. dollar notes, 0.875% to 6.375% (average interest rate 4.347%), due through 2044 $ 28,427 $ 22,596 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.877%), due through 2039 8,358 8,116 Swiss franc note, 1.625%, due 2024 279 378 Euro credit facility borrowings related to Swedish Match AB acquisition, (average interest rate 3.866%), due through 2027 6,010 5,850 Swedish krona notes, 1.395% to 5.414% (average interest rate 2.325%), due through 2029 243 343 Other (average interest rate 6.223%), due through 2031 (a) 455 203 Carrying value of long-term debt 43,772 37,486 Less current portion of long-term debt 2,372 2,611 $ 41,400 $ 34,875 (a) Includes long-term bank loans at subsidiaries, as well as $29 million and $54 million in finance leases at June 30, 2023 and December 31, 2022, respectively. The fair value of PMI’s outstanding long-term debt, which is utilized solely for disclosure purposes, is determined using quotes and market interest rates currently available to PMI for issuances of debt with similar terms and remaining maturities. At June 30, 2023, the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: (in millions) June 30, 2023 Level 1 $ 35,139 Level 2 6,576 For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Item 8, Note 2. Summary of Significant Accounting Policies of PMI's Annual Report on Form 10-K for the year ended December 31, 2022. Credit Facilities related to the Financing of the Swedish Match Acquisition In connection with PMI's all-cash recommended public offer to the shareholders of Swedish Match, on May 11, 2022, PMI entered into a credit agreement relating to a 364-day senior unsecured bridge facility. The facility provided for borrowings up to an aggregate principal amount of $17 billion, expiring 364 days after the occurrence of certain events unless extended. On June 23, 2022, PMI entered into a €5.5 billion (approximately $5.8 billion at the date of signing) senior unsecured term loan credit agreement consisting of a €3.0 billion (approximately $3.2 billion at the date of signing) tranche expiring three years after the occurrence of certain events and a €2.5 billion (approximately $2.6 billion at the date of signing) tranche expiring on June 23, 2027. In connection with the term loan facility, the aggregate principal amount of commitments under the 364-day senior unsecured bridge facility was reduced from $17 billion to $11 billion. On November 11, 2022, PMI acquired a controlling interest of 85.87% of the total issued shares in Swedish Match and acquired 94.81% of its outstanding shares as of December 31, 2022. In accordance with the Swedish Companies Act, PMI subsequently exercised its right to compulsorily redeem the remaining shares for which acceptances were not received and obtained legal title to 100% of the shares in Swedish Match on February 17, 2023. PMI borrowed $8.4 billion under the bridge facility by delivering notices of borrowing for advances of $7.9 billion and $0.5 billion on November 7, 2022 and November 10, 2022, respectively. All amounts borrowed under the bridge facility would become due on November 8, 2023 unless prepaid or such maturity date is extended pursuant to the terms of the bridge facility. On November 7, 2022, PMI also delivered notices of borrowing for advances totaling €5.5 billion under the term loan facility, of which €3.0 billion will become due on November 9, 2025 and €2.5 billion will become due on June 23, 2027 unless prepaid pursuant to the terms of the credit agreement. On November 21, 2022 and February 17, 2023, PMI repaid $4.0 billion and $4.4 billion, respectively, under the bridge facility. Effective February 20, 2023, the remaining outstanding commitments under the bridge facility were fully canceled and the bridge facility agreement was terminated in accordance with its terms. As of June 30, 2023 and December 31, 2022, the €5.5 billion (approximately $6 billion) term loan facility was fully drawn and remained outstanding. The proceeds under the bridge facility and the term loan facility were used, directly or indirectly, to finance the acquisition, including, the payment of related fees and expenses. For further details on this acquisition, see Note 2. Acquisitions . Debt Issuances PMI's debt issuances in the first six months of 2023 were as follows: (in millions) Type Face Value Interest Rate Issuance Maturity U.S. dollar notes (a) $1,250 4.875% February 2023 February 2026 U.S. dollar notes (a) $1,000 4.875% February 2023 February 2028 U.S. dollar notes (a) $1,500 5.125% February 2023 February 2030 U.S. dollar notes (a) $1,500 5.375% February 2023 February 2033 U.S. dollar notes (a) (b) $450 4.875% May 2023 February 2026 U.S. dollar notes (a) (c) $550 4.875% May 2023 February 2028 U.S. dollar notes (a) (d) $700 5.125% May 2023 February 2030 U.S. dollar notes (a) (e) $750 5.375% May 2023 February 2033 (a) Interest is payable semi-annually, commencing in August 2023 (b) These notes are a further issuance of the 4.875% notes issued in February 2023 (c) These notes are a further issuance of the 4.875% notes issued in February 2023 (d) These notes are a further issuance of the 5.125% notes issued in February 2023 (e) These notes are a further issuance of the 5.375% notes issued in February 2023 On February 17, 2023, PMI applied a portion of the net proceeds of the debt issuances to prepay $4.4 billion under its bridge facility, which represented all borrowings outstanding under the bridge facility. PMI used a portion of the May 2023 net proceeds to pay the remaining cash consideration due in accordance with the terms of its agreement with Altria. For further details on PMI's agreement with Altria, see Note 2. Acquisitions . The remaining net proceeds of the February and May 2023 offerings have been or will be used for general corporate purposes. Revolving Credit Facilities: At June 30, 2023, PMI's total committed revolving credit facilities were as follows: (in billions) Type Committed 364-day revolving credit, expiring January 30, 2024 1.8 Multi-year revolving credit, expiring February 10, 2026 (1) 2.0 Multi-year revolving credit, expiring September 29, 2026 (2) (3) 2.5 Total facilities $ 6.3 (1) On January 28, 2022, PMI 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. (2) 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. (3) On September 20, 2022, PMI entered into an agreement, effective September 29, 2022, to amend and extend the term of its $2.5 billion multi-year revolving credit facility, for an additional year covering the period September 30, 2026 to September 29, 2027, in the amount of $2.3 billion. At June 30, 2023, there were no borrowings under these committed revolving credit facilities, and the entire committed amounts were available for borrowing. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses: | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Losses: | Accumulated Other Comprehensive Losses: PMI’s accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At At At (in millions) June 30, 2023 December 31, 2022 June 30, 2022 Currency translation adjustments $ (8,678) $ (8,003) $ (6,558) Pension and other benefits (1,775) (1,822) (2,735) Derivatives accounted for as hedges 408 266 250 Total accumulated other comprehensive losses $ (10,045) $ (9,559) $ (9,043) Reclassifications from Other Comprehensive Earnings The movements in accumulated other comprehensive losses and the related tax impact, for each of the components above, that are due to current period activity and reclassifications to the income statement, are shown on the condensed consolidated statements of comprehensive earnings for the six months and three months ended June 30, 2023 and 2022. For additional information, see Note 2. Acquisitions (Transactions With Noncontrolling Interests) for disclosures related to currency translation adjustments , Note 5. Benefit Plans for disclosures related to PMI's pension and other benefits and Note 7. Financial Instruments for disclosures related to derivative financial instruments. |
Related Parties - Equity Invest
Related Parties - Equity Investments and Other: | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parties - Equity Investments and Other: | Related Parties - Equity Investments and Other: Equity Method Investments: At June 30, 2023 and December 31, 2022, PMI had total equity method investments of $1,247 million and $1,000 million, respectively. Equity method investments are initially recorded at cost. Under the equity method of accounting, the investment is adjusted for PMI's proportionate share of earnings or losses, dividends, capital contributions, changes in ownership interests and movements in currency translation adjustments. The carrying value of our equity method investments at June 30, 2023 and December 31, 2022, exceeded our share of the investees' book value by $902 million and $750 million, respectively. The difference between the investment carrying value and the amount of underlying equity in net assets is mainly attributable to equity method goodwill, convertible debt instruments, and definite-lived intangible assets and other assets. The difference related to the definite-lived intangibles and other assets at June 30, 2023 and December 31, 2022 of $34 million and $35 million, respectively, is amortized on a straight-line basis and is included in Equity investments and securities (income)/loss, net on the condensed consolidated statements of earnings. At June 30, 2023 and December 31, 2022, PMI received year-to-date dividends from equity method investees of $50 million and $9 million, respectively. PMI holds a 23% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis, PMI's distributor in Russia (SSEA, CIS & MEA segment), which as of June 30, 2023 had a carrying value of $377 million. While as of June 30, 2023, there have been no impairment indicators based on the business’ performance, there are still risks related to this investment as the fair value of these assets is difficult to predict due to the volatility in foreign currency and commodity markets, supply chain, and current economic, political and social conditions. For more information, see Note 3. War in Ukraine . Additionally, there was approximately $548 million of cumulative foreign currency translation losses associated with Megapolis Distribution BV reflected in accumulated other comprehensive losses in the condensed consolidated statement of stockholders’ equity as of June 30, 2023. 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 (SSEA, CIS & MEA segment). In April 2023, PMI increased its equity ownership and acquired 66.73% of Egyptian Investment Holding (“EIH”), a United Arab Emirates based company and as a result, acquired an approximate economic interest of 25% in United Tobacco Company ("UTC"). UTC is an entity incorporated in Egypt, which is 38% owned by EIH and manufactures products under license for Philip Morris Misr LCC (“PMM”), an entity incorporated in Egypt which is consolidated in PMI’s financial statements in the SSEA, CIS & MEA segment. The initial investments in Megapolis Distribution BV, EITA and UTC have been recorded at cost and are included in equity investments on the consolidated balance sheets. Transactions between these equity method investees and PMI subsidiaries are considered to be related-party transactions and are included in the tables below. 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. 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 $313 million at June 30, 2023. Unrealized pre-tax gain (loss) of $(13) million ($(10) million net of tax) on these equity securities was recorded in equity investments and securities (income)/loss, net on the condensed consolidated statements of earnings for the six months ended June 30, 2023. 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 SSEA, CIS & MEA 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 SSEA, CIS & MEA segment. GPI also acts as contract manufacturer and distributor for IPM India. Financial activity with the above related parties: PMI’s net revenues and expenses with the above related parties were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Net revenues: Megapolis Group $ 1,184 $ 993 $ 596 $ 606 Other 590 554 305 263 Net revenues (a) $ 1,774 $ 1,547 $ 901 $ 869 Expenses: Other $ 113 $ 29 $ 63 $ 17 Expenses $ 113 $ 29 $ 63 $ 17 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: (in millions) At June 30, 2023 At December 31, 2022 Receivables: Megapolis Group $ 441 $ 478 Other 268 210 Receivables $ 709 $ 688 Payables: Other $ 30 $ 31 Payables $ 30 $ 31 |
Sale of Accounts Receivable_
Sale of Accounts Receivable: | 6 Months Ended |
Jun. 30, 2023 | |
Sale of Accounts Receivable [Abstract] | |
Sale of Accounts Receivable: | Sale of Accounts Receivable: To mitigate risk and enhance cash and liquidity management, PMI sells trade receivables to unaffiliated financial institutions. These arrangements allow PMI to sell, on an ongoing basis, certain trade receivables without recourse. The trade receivables sold are generally short-term in nature and are removed from the condensed consolidated balance sheets. PMI sells trade receivables under two types of arrangements, servicing and non-servicing. For servicing arrangements, PMI continues to service the sold trade receivables on an administrative basis and does not act on behalf of the unaffiliated financial institutions. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material as of June 30, 2023 and June 30, 2022. Under the non-servicing arrangements, PMI does not provide any administrative support or servicing after the trade receivables have been sold to the unaffiliated financial institutions. Cumulative trade receivables sold, including excise taxes, for the six months ended June 30, 2023 and 2022, were $6.1 billion and $5.6 billion, respectively. PMI’s operating cash flows were positively impacted by the amount of the trade receivables sold and derecognized from the condensed consolidated balance sheets, which remained outstanding with the unaffiliated financial institutions. The trade receivables sold that remained outstanding under these arrangements as of June 30, 2023 and June 30, 2022, were $683 million, and $656 million, respectively. The net proceeds received are included in cash provided by operating activities in the condensed consolidated statements of cash flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of trade receivables within marketing, administration and research costs in the condensed consolidated statements of earnings. The loss on sale of trade receivables was as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 24 $ 14 2022 $ 8 $ 5 |
Product Warranty_
Product Warranty: | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty: | Product Warranty: PMI's heat-not-burn devices and e-vapor products are subject to standard product warranties generally for a period of 12 months from the date of purchase or such other periods as required by law. PMI generally provides in cost of sales for the estimated cost of warranty in the period the related revenue is recognized. PMI assesses the adequacy of its accrued product warranties and adjusts the amounts as necessary based on actual experience and changes in future estimates. Factors that affect product warranties may vary across markets but typically include device version mix, product failure rates, logistics and service delivery costs, and warranty policies. PMI accounts for its product warranties within other accrued liabilities. At June 30, 2023 and December 31, 2022, these amounts were as follows: (in millions) As of and For the Six Months Ended June 30, 2023 As of and For the Year Ended December 31, 2022 Balance at beginning of period $ 104 $ 113 Changes due to: Warranties issued 43 107 Settlements (46) (114) Currency/Other (2) (2) Balance at end of period $ 99 $ 104 |
Asset Impairment and Exit Costs
Asset Impairment and Exit Costs: | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs: | Asset Impairment and Exit Costs: For the six months ended June 30, 2023, PMI recorded total pre-tax asset impairment and exit costs of $109 million related to restructuring activities. For the three months ended June 30, 2023, PMI did not record such charges related to restructuring activities. These pre-tax charges were included in marketing, administration and research costs in the condensed consolidated statements of earnings for the six months ended June 30, 2023. For the six months and three months ended June 30, 2022, PMI did not record any charges for asset impairment and exit costs related to restructuring activities. During the six months and three months ended June 30, 2023, PMI recorded a pre-tax impairment charge on goodwill and other intangibles of $680 million within the Wellness and Healthcare segment. For further details, see Note 6. Goodwill and Other Intangible Assets, net . e-Vapor Products Manufacturing Optimization In the first quarter of 2023, PMI initiated a project to fully outsource and restructure the manufacturing of e-vapor devices and consumables. As a result, PMI recorded pre-tax asset impairment and exit costs of $109 million. This amount included contract termination costs for suppliers of $78 million, including $21 million of embedded finance lease terminations, which will be paid in cash. This also included asset impairment costs of $31 million, primarily related to machinery and equipment, which were non-cash charges. Asset Impairment and Exit Costs by Segment PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) For the Six Months Ended June 30, 2023 Contract termination charges: Europe $ 35 SSEA, CIS & MEA 25 EA, AU & PMI DF 15 Americas 3 Total contract termination charges 78 Asset impairment charges: Europe 14 SSEA, CIS & MEA 9 EA, AU & PMI DF 6 Americas 2 Total asset impairment charges 31 Asset impairment and exit costs $ 109 Movement in Exit Cost Liabilities The movement in exit cost liabilities for the six months ended June 30, 2023 was as follows: (in millions) Liability balance, January 1, 2023 $ 40 Charges, net 78 Cash spent (24) Currency/other 2 Liability balance, June 30, 2023 $ 96 |
Leases_
Leases: | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases: | Leases: The components of PMI’s lease cost were as follows for the six months and three months ended June 30, 2023 and 2022: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Operating lease cost $ 133 $ 126 $ 66 $ 64 Finance lease cost: Amortization of right-of-use assets 28 47 14 31 Short-term lease cost 29 30 15 16 Variable lease cost 14 11 7 5 Total lease cost $ 204 $ 214 $ 102 $ 116 |
Leases: | Leases: The components of PMI’s lease cost were as follows for the six months and three months ended June 30, 2023 and 2022: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Operating lease cost $ 133 $ 126 $ 66 $ 64 Finance lease cost: Amortization of right-of-use assets 28 47 14 31 Short-term lease cost 29 30 15 16 Variable lease cost 14 11 7 5 Total lease cost $ 204 $ 214 $ 102 $ 116 |
Supply Chain Financing_
Supply Chain Financing: | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supply Chain Financing: | Supply Chain Financing: PMI has engaged with unaffiliated global financial institutions that offer a voluntary supply chain financing ("SCF") program to some of our suppliers. Under the SCF program, the suppliers may elect, at their sole discretion, to sell PMI's payment obligations to these financial institutions. The suppliers independently negotiate the sale arrangements directly with these financial institutions. PMI does not participate in these negotiations, nor does it have any economic interest in these agreements, or in the designated suppliers’ voluntary decision to sell PMI's payment obligations to these financial institutions. No guarantees or securities are provided by PMI or any of its subsidiaries under the SCF programs. PMI's obligations to its suppliers, including amounts due and scheduled payment terms are not impacted by the suppliers’ decision to sell amounts under the SCF program. The payment terms of PMI’s suppliers generally do not exceed 120 days. All outstanding payable amounts related to suppliers that are participating in the SCF program are recorded in accounts payable in PMI's condensed consolidated balance sheets. The associated payments are included in cash flows from operating activities within PMI's condensed consolidated statement of cash flows. As of June 30, 2023 and December 31, 2022, the total amount due to suppliers participating in the SCF program was approximately $0.9 billion and $1.1 billion, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 1,568 | $ 2,233 | $ 3,563 | $ 4,564 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Prese_2
Background and Basis of Presentation: (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The interim condensed consolidated financial statements of PMI are unaudited. These interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and such principles are applied on a consistent basis. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S.GAAP have been omitted. It is the opinion of PMI’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected therein. All such adjustments were of a normal recurring nature. Net revenues and net earnings attributable to PMI for any interim period are not necessarily indicative of results that may be expected for the entire year. |
Derivatives | PMI operates in markets primarily outside of the United States of America, with manufacturing and sales facilities in various locations around the world and is exposed to risks such as changes in foreign currency exchange rates and interest rates. As a result, PMI uses deliverable and non-deliverable forward foreign exchange contracts, foreign currency swaps and foreign currency options (collectively referred to as "foreign exchange contracts"), and interest rate contracts to mitigate its exposure to changes in foreign currency exchange and interest rates related to net investments in foreign operations, third-party and intercompany actual and forecasted transactions. The primary currencies to which PMI is exposed include the Euro, Egyptian pound, Indonesian rupiah, Japanese yen, Mexican peso, Philippine peso, Russian ruble and Swiss franc. Additionally, certain materials that PMI uses in the manufacturing of its products are exposed to market price risks. PMI uses commodity derivative contracts (“commodity contracts") to manage its exposure to the market price volatility of certain commodity components of these materials. |
Fair Value of Financial Instruments | PMI assesses the fair value of its derivative 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. |
Acquisitions_ (Tables)
Acquisitions: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the preliminary purchase price allocation for the fair value of assets acquired and liabilities assumed as of the acquisition date: (in millions) Cash and cash equivalents $ 484 Trade receivables 135 Other receivables 53 Inventories 444 Other current assets 415 Property, plant and equipment 627 Other intangible assets 4,512 Other non-current assets 214 Current portion of long-term debt 224 Accounts payable 120 Other current liabilities 531 Income taxes 14 Long-term debt 1,126 Deferred income taxes 1,253 Other non-current liabilities 187 Identifiable net assets acquired 3,429 Noncontrolling interest 2,379 Goodwill 13,410 Total consideration transferred $ 14,460 Identifiable intangible assets of Swedish Match consist of: Type Useful Life Estimated Fair Value (in millions) Trademarks Non-amortizable $ 2,077 Trademarks Amortizable 20 years 904 Developed technology, including patents 10 years 367 Customer relationships 10 years 1,164 Total identifiable intangible assets $ 4,512 The unaudited pro forma financial information is as follows: For the Years Ended December 31, (in millions) 2022 2021 Net revenues $ 33,690 $ 33,577 Net earnings attributable to PMI $ 8,875 $ 8,610 |
War in Ukraine_ (Tables)
War in Ukraine: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of pretax charges related to circumstances | PMI recorded in its condensed consolidated statements of earnings pre-tax charges related to circumstances driven by the war as follows: (in millions) For the Six Months Ended June 30, 2022 For the Three Months Ended June 30, 2022 Cost of sales Marketing, administration and research costs Total Cost of sales Marketing, administration and research costs Total Ukraine 1 $ 25 $ 26 $ 51 $ 14 $ 10 $ 24 Russia 2 21 50 71 6 50 56 Total $ 46 $ 76 $ 122 $ 20 $ 60 $ 80 1 The pre-tax charges were primarily due to an inventory write down, additional allowance for receivables and the cost of PMI’s humanitarian efforts, which includes salary continuation for its employees. |
Stock Plans_ (Tables)
Stock Plans: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure of share-based compensation arrangements by payment award | During the six months ended June 30, 2023 and 2022, shares granted to eligible employees and the weighted-average grant date fair value per share related to RSU awards were as follows: Number of Weighted-Average Grant Date Fair Value Per RSU Award Granted 2023 1,752,050 $ 101.98 2022 1,575,500 $ 104.99 Compensation expense related to RSU awards was as follows: Compensation Expense Related to RSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 86 $ 36 2022 $ 74 $ 35 During the six months ended June 30, 2023 and 2022, shares granted to eligible employees and the grant date fair value per share related to PSU awards were as follows: Number of Shares Granted Weighted- Weighted- (Per Share) (Per Share) 2023 482,360 $ 102.02 $ 133.54 2022 451,790 $ 105.07 $ 143.94 Compensation expense related to PSU awards was as follows: Compensation Expense Related to PSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 45 $ 18 2022 $ 31 $ 10 |
Schedule of assumptions used to determine the grant date fair value of the PSU awards subject to the TSR performance metric | The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor: 2023 2022 Average risk-free interest rate (a) 4.1 % 1.6 % Average expected volatility (b) 24.3 % 28.6 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. |
Benefit Plans_ (Tables)
Benefit Plans: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Components of pension and other employee benefit costs | Pension and other employee benefit costs per the condensed consolidated statements of earnings consisted of the following: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Net pension costs (income) $ (37) $ (49) $ (25) $ (24) Net postemployment costs 59 54 29 27 Net postretirement costs 6 4 2 2 Total pension and other employee benefit costs $ 28 $ 9 $ 6 $ 5 |
Components of net periodic benefit cost | Net periodic pension cost consisted of the following: Pension (1) For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Service cost $ 85 $ 119 $ 42 $ 59 Interest cost 129 38 63 18 Expected return on plan assets (181) (180) (91) (88) Amortization: Net loss 16 94 4 46 Prior service cost (credit) (1) (1) (1) — Net periodic pension cost $ 48 $ 70 $ 17 $ 35 (1) Primarily non-U.S. based defined benefit retirement plans. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of movements in goodwill | The movements in goodwill were as follows: (in millions) Europe SSEA, CIS & MEA EA, AU & PMI DF Americas Swedish Match Wellness & Healthcare Total Balances at December 31, 2022 $ 1,370 $ 2,869 $ 493 $ 615 $ 13,296 $ 1,012 $ 19,655 Changes due to: Impairment — — — — — (665) (665) Currency 48 68 6 71 (94) 38 137 Other — — — — 109 — 109 Balances, June 30, 2023 $ 1,418 $ 2,937 $ 499 $ 686 $ 13,311 $ 385 $ 19,236 |
Schedule of amortizable intangible assets | Details of other intangible assets were as follows: June 30, 2023 December 31, 2022 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 3,418 $ 3,418 $ 3,346 $ 3,346 Amortizable intangible assets: Trademarks 15 years 2,028 $ 720 1,308 2,050 $ 674 1,376 Developed technology, including patents 8 years 994 296 698 975 243 732 Customer relationships and other 10 years 1,384 178 1,206 1,390 112 1,278 Total other intangible assets $ 7,824 $ 1,194 $ 6,630 $ 7,761 $ 1,029 $ 6,732 |
Schedule of non-amortizable intangible assets | Details of other intangible assets were as follows: June 30, 2023 December 31, 2022 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 3,418 $ 3,418 $ 3,346 $ 3,346 Amortizable intangible assets: Trademarks 15 years 2,028 $ 720 1,308 2,050 $ 674 1,376 Developed technology, including patents 8 years 994 296 698 975 243 732 Customer relationships and other 10 years 1,384 178 1,206 1,390 112 1,278 Total other intangible assets $ 7,824 $ 1,194 $ 6,630 $ 7,761 $ 1,029 $ 6,732 |
Financial Instruments_ (Tables)
Financial Instruments: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The gross notional amounts for outstanding derivatives at the end of each period were as follows: (in millions) At June 30, 2023 At December 31, 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts $ 19,687 $ 17,627 Interest rate contracts 1,000 1,019 Commodity contracts 26 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts 20,431 21,755 Total $ 41,144 $ 40,401 |
Fair value of derivative contracts | The fair value of PMI’s derivative contracts included in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value At At At At (in millions) Balance Sheet Classification June 30, 2023 December 31, 2022 Balance Sheet Classification June 30, 2023 December 31, 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts Other current assets $ 357 $ 376 Other accrued liabilities $ 265 $ 126 Other assets 327 341 Income taxes and other liabilities 216 147 Interest rate contracts Other current assets — — Other accrued liabilities 38 27 Other assets — — Income taxes and other liabilities 43 56 Commodity contracts Other current assets — — Other accrued liabilities 1 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts Other current assets 82 156 Other accrued liabilities 203 165 Other assets — — Income taxes and other liabilities 86 16 Total gross amount derivatives contracts presented in the condensed consolidated balance sheets $ 766 $ 873 $ 852 $ 537 Gross amounts not offset in the condensed consolidated balance sheets Financial instruments (355) (346) (355) (346) Cash collateral received/pledged (240) (341) (173) (48) Net amount $ 171 $ 186 $ 324 $ 143 |
Derivative contracts impact on the condensed consolidated statements of earnings and other comprehensive earnings | For the six months ended June 30, 2023 and 2022, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Six Months Ended June 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2023 2022 2023 2022 2023 2022 Derivative contracts designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 223 $ 248 Net revenues $ 39 $ 81 Cost of sales — — Marketing, administration and research costs 71 (10) Interest expense, net (6) (3) Interest rate contracts 72 107 Interest expense, net 22 (4) Commodity contracts (1) — Cost of sales — — Fair value hedges: Interest rate contracts Interest expense, net (a) $ (14) $ (57) Net investment hedges (b) : Foreign exchange contracts (439) 530 Interest expense, net (c) 127 68 Derivative contracts not designated as hedging instruments: Foreign exchange contracts Interest expense, net 152 43 Marketing, administration and research costs (d) (104) 65 Total $ (145) $ 885 $ 126 $ 64 $ 161 $ 119 (a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item (b) 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 (c) Represent the gains for amounts excluded from the effectiveness testing (d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are partially offset by the (losses) and gains generated by the underlying intercompany and third-party loans being hedged For the three months ended June 30, 2023 and 2022, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Three Months Ended June 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2023 2022 2023 2022 2023 2022 Derivative contracts designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 213 $ 169 Net revenues $ 27 $ 64 Cost of sales — — Marketing, administration and research costs 55 (7) Interest expense, net (3) (2) Interest rate contracts 7 56 Interest expense, net 12 (2) Commodity contracts (1) — Cost of sales — — Fair value hedges: Interest rate contracts Interest expense, net (a) $ (17) $ (20) Net investment hedges (b) : Foreign exchange contracts (181) 425 Interest expense, net (c) 64 35 Derivative contracts not designated as hedging instruments: Foreign exchange contracts Interest expense, net 62 35 Marketing, administration and research costs (d) (88) 66 Total $ 38 $ 650 $ 91 $ 53 $ 21 $ 116 (a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item (b) 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 (c) Represent the gains for amounts excluded from the effectiveness testing (d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are partially offset by the (losses) and gains generated by the underlying intercompany and third-party loans being hedged |
Qualifying hedging activity reported in accumulated other comprehensive earnings (losses), net of income taxes | Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Gain/(loss) as of beginning of period, $ 266 $ 4 $ 296 $ 105 Derivative (gains)/losses transferred to earnings (104) (55) (75) (46) Change in fair value 246 301 187 191 Gain/(loss) as of June 30, $ 408 $ 250 $ 408 $ 250 |
Earnings Per Share_ (Tables)
Earnings Per Share: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted EPS | Basic and diluted earnings per share (“EPS”) were calculated using the following: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Net earnings attributable to PMI $ 3,563 $ 4,564 $ 1,568 $ 2,233 Less distributed and undistributed earnings attributable to share-based payment awards 11 13 5 7 Net earnings for basic and diluted EPS $ 3,552 $ 4,551 $ 1,563 $ 2,226 Weighted-average shares for basic EPS 1,552 1,550 1,552 1,551 Plus contingently issuable performance stock units (PSUs) 1 2 1 1 Weighted-average shares for diluted EPS 1,553 1,552 1,553 1,552 |
Segment Reporting_ (Tables)
Segment Reporting: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment data | Segment data were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Net revenues: Europe $ 6,312 $ 6,533 $ 3,402 $ 3,309 SSEA, CIS & MEA 5,145 4,959 2,668 2,514 EA, AU & PMI DF 3,200 3,051 1,680 1,464 Americas 921 893 476 469 Swedish Match 1,246 — 665 — Wellness and Healthcare 162 142 76 76 Net revenues $ 16,986 $ 15,578 $ 8,967 $ 7,832 Operating income (loss): Europe $ 2,738 $ 3,032 $ 1,563 $ 1,474 SSEA, CIS & MEA 1,570 1,923 858 958 EA, AU & PMI DF 1,167 1,213 544 528 Americas 136 251 70 130 Swedish Match 457 — 264 — Wellness and Healthcare (771) (65) (733) (34) Operating income $ 5,297 $ 6,354 $ 2,566 $ 3,056 PMI's net revenues by product category were as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 2022 2023 2022 Net revenues: Combustible tobacco products: Europe $ 3,924 $ 3,999 $ 2,108 $ 2,062 SSEA, CIS & MEA 4,504 4,398 2,350 2,203 EA, AU & PMI DF 1,412 1,523 724 754 Americas 889 846 459 444 Swedish Match 284 — 149 — Total combustible tobacco products 11,013 10,766 5,790 5,463 Smoke-free products: Smoke-free products excluding Wellness and Healthcare: Europe 2,388 2,534 1,294 1,247 SSEA, CIS & MEA 641 561 318 311 EA, AU & PMI DF 1,788 1,528 956 710 Americas 32 47 17 25 Swedish Match 962 — 516 — Total smoke-free products excluding Wellness and Healthcare 5,811 4,670 3,101 2,293 Wellness and Healthcare 162 142 76 76 Total smoke-free products 5,973 4,812 3,177 2,369 Total PMI net revenues $ 16,986 $ 15,578 $ 8,967 $ 7,832 |
Contingencies_ (Tables)
Contingencies: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, and June 30, 2022: Type of Case 1 Number of Cases Pending as of June 30, 2023 Number of Cases Pending as of June 30, 2022 Individual Smoking and Health Cases 50 40 Smoking and Health Class Actions 9 9 Health Care Cost Recovery Actions 17 17 Label-Related Class Actions — — Individual Label-Related Cases 5 5 Public Civil Actions 1 1 ______ ¹ Includes cases pending in Canada. |
Schedule of verdicts and significant post trial developments where a verdict was returned in favor of the plaintiff(s) | The table below lists the verdict and significant post-trial developments in the five 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 $11.7 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 $2.3 billion)). The trial court awarded CAD 90,000 (approximately $68,000) in punitive damages, allocating CAD 30,000 (approximately $23,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $756 million) of the compensatory damage award, CAD 200 million (approximately $151 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 $99 million) in punitive damages, allocating CAD 46 million (approximately $35 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 $408), 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 $557), in compensatory and moral damages, and ARS 4,000,000 (approximately $14,854) 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 $22,705), into a court escrow account. Our subsidiary challenged the amount determined by the court. The Civil and Commercial Court of Appeals of Mar del Plata 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 $3,318) was returned to our subsidiary. If our subsidiary ultimately prevails, the remaining deposited amounts will be returned to our subsidiary. On May 31, 2022, the Civil and Commercial Court of Appeals of Mar del Plata ruled that the statute of limitations barred plaintiff's claim and reversed the trial court's decision. On June 15, 2022, plaintiff filed an extraordinary appeal. Date Location of Type of Verdict Post-Trial June 23, 2023 Turkey/ Senem Yilmazel Individual Action On June 23, 2023, the Ankara Consumer Court published its decision in favor of plaintiff, the daughter of an individual smoker, against our subsidiary and a BAT subsidiary, awarding her TRY 10,000 (approximately $370) in damages. The trial court found that the plaintiff’s father died as a result of lung cancer and COPD caused by his cigarette consumption. |
Indebtedness_ (Tables)
Indebtedness: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | At June 30, 2023 and December 31, 2022, PMI’s short-term borrowings and related average interest rates consisted of the following: June 30, 2023 December 31, 2022 (in millions) Amount Outstanding Average Rate Amount Outstanding Average Rate Commercial paper $ 3,975 5.2 % $ 912 4.4 % Bank loans 146 8.1 295 7.5 U.S. dollar credit facility borrowings related to Swedish Match AB acquisition — — 4,430 4.9 $ 4,121 $ 5,637 |
Long-term debt | At June 30, 2023 and December 31, 2022, PMI’s long-term debt consisted of the following: (in millions) June 30, 2023 December 31, 2022 U.S. dollar notes, 0.875% to 6.375% (average interest rate 4.347%), due through 2044 $ 28,427 $ 22,596 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.877%), due through 2039 8,358 8,116 Swiss franc note, 1.625%, due 2024 279 378 Euro credit facility borrowings related to Swedish Match AB acquisition, (average interest rate 3.866%), due through 2027 6,010 5,850 Swedish krona notes, 1.395% to 5.414% (average interest rate 2.325%), due through 2029 243 343 Other (average interest rate 6.223%), due through 2031 (a) 455 203 Carrying value of long-term debt 43,772 37,486 Less current portion of long-term debt 2,372 2,611 $ 41,400 $ 34,875 |
Aggregate fair values of PMI's debt, excluding finance leases | At June 30, 2023, the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: (in millions) June 30, 2023 Level 1 $ 35,139 Level 2 6,576 |
Schedule of Debt Issuances During Current Period | PMI's debt issuances in the first six months of 2023 were as follows: (in millions) Type Face Value Interest Rate Issuance Maturity U.S. dollar notes (a) $1,250 4.875% February 2023 February 2026 U.S. dollar notes (a) $1,000 4.875% February 2023 February 2028 U.S. dollar notes (a) $1,500 5.125% February 2023 February 2030 U.S. dollar notes (a) $1,500 5.375% February 2023 February 2033 U.S. dollar notes (a) (b) $450 4.875% May 2023 February 2026 U.S. dollar notes (a) (c) $550 4.875% May 2023 February 2028 U.S. dollar notes (a) (d) $700 5.125% May 2023 February 2030 U.S. dollar notes (a) (e) $750 5.375% May 2023 February 2033 (a) Interest is payable semi-annually, commencing in August 2023 (b) These notes are a further issuance of the 4.875% notes issued in February 2023 (c) These notes are a further issuance of the 4.875% notes issued in February 2023 (d) These notes are a further issuance of the 5.125% notes issued in February 2023 (e) These notes are a further issuance of the 5.375% notes issued in February 2023 |
Schedule of committed credit facilities | At June 30, 2023, PMI's total committed revolving credit facilities were as follows: (in billions) Type Committed 364-day revolving credit, expiring January 30, 2024 1.8 Multi-year revolving credit, expiring February 10, 2026 (1) 2.0 Multi-year revolving credit, expiring September 29, 2026 (2) (3) 2.5 Total facilities $ 6.3 (1) On January 28, 2022, PMI 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. (2) 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. (3) On September 20, 2022, PMI entered into an agreement, effective September 29, 2022, to amend and extend the term of its $2.5 billion multi-year revolving credit facility, for an additional year covering the period September 30, 2026 to September 29, 2027, in the amount of $2.3 billion. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive earnings (losses), net of taxes | PMI’s accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At At At (in millions) June 30, 2023 December 31, 2022 June 30, 2022 Currency translation adjustments $ (8,678) $ (8,003) $ (6,558) Pension and other benefits (1,775) (1,822) (2,735) Derivatives accounted for as hedges 408 266 250 Total accumulated other comprehensive losses $ (10,045) $ (9,559) $ (9,043) |
Related Parties - Equity Inve_2
Related Parties - Equity Investments and Other: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Earnings and balance sheet activities with related parties - equity investments and other | PMI’s net revenues and expenses with the above related parties were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Net revenues: Megapolis Group $ 1,184 $ 993 $ 596 $ 606 Other 590 554 305 263 Net revenues (a) $ 1,774 $ 1,547 $ 901 $ 869 Expenses: Other $ 113 $ 29 $ 63 $ 17 Expenses $ 113 $ 29 $ 63 $ 17 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: (in millions) At June 30, 2023 At December 31, 2022 Receivables: Megapolis Group $ 441 $ 478 Other 268 210 Receivables $ 709 $ 688 Payables: Other $ 30 $ 31 Payables $ 30 $ 31 |
Receivables, Loans, Notes Recei
Receivables, Loans, Notes Receivable, and Others (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loss on sale of trade receivables | The loss on sale of trade receivables was as follows: (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 24 $ 14 2022 $ 8 $ 5 |
Product Warranty_ (Tables)
Product Warranty: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of accrued product warranties | At June 30, 2023 and December 31, 2022, these amounts were as follows: (in millions) As of and For the Six Months Ended June 30, 2023 As of and For the Year Ended December 31, 2022 Balance at beginning of period $ 104 $ 113 Changes due to: Warranties issued 43 107 Settlements (46) (114) Currency/Other (2) (2) Balance at end of period $ 99 $ 104 |
Asset Impairment and Exit Cos_2
Asset Impairment and Exit Costs: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Pre-tax asset impairment and exit costs by segment | PMI recorded the following pre-tax asset impairment and exit costs by segment: (in millions) For the Six Months Ended June 30, 2023 Contract termination charges: Europe $ 35 SSEA, CIS & MEA 25 EA, AU & PMI DF 15 Americas 3 Total contract termination charges 78 Asset impairment charges: Europe 14 SSEA, CIS & MEA 9 EA, AU & PMI DF 6 Americas 2 Total asset impairment charges 31 Asset impairment and exit costs $ 109 |
Movement in exit cost liabilities | The movement in exit cost liabilities for the six months ended June 30, 2023 was as follows: (in millions) Liability balance, January 1, 2023 $ 40 Charges, net 78 Cash spent (24) Currency/other 2 Liability balance, June 30, 2023 $ 96 |
Leases_ (Tables)
Leases: (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease cost components | The components of PMI’s lease cost were as follows for the six months and three months ended June 30, 2023 and 2022: For the Six Months Ended June 30, For the Three Months Ended June 30, (in millions) 2023 2022 2023 2022 Operating lease cost $ 133 $ 126 $ 66 $ 64 Finance lease cost: Amortization of right-of-use assets 28 47 14 31 Short-term lease cost 29 30 15 16 Variable lease cost 14 11 7 5 Total lease cost $ 204 $ 214 $ 102 $ 116 |
Background and Basis of Prese_3
Background and Basis of Presentation: (Narrative) (Details) - segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Geographical Segment | ||
Product Information [Line Items] | ||
Number of reportable segments | 4 | 6 |
Acquisitions_ (Details)
Acquisitions: (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Nov. 11, 2022 | Jan. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 14, 2023 | Feb. 17, 2023 | Oct. 20, 2022 | |
Business Acquisition [Line Items] | ||||||||||||||
Purchase of subsidiary shares from noncontrolling interests (Note 2) | $ 211 | |||||||||||||
Proceeds from sale of holdings | $ 258 | |||||||||||||
Increase goodwill | $ 109 | |||||||||||||
Additional Paid-in Capital | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase of subsidiary shares from noncontrolling interests (Note 2) | $ 30 | 30 | ||||||||||||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2) | 36 | |||||||||||||
Accumulated Other Comprehensive Losses | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase of subsidiary shares from noncontrolling interests (Note 2) | $ 171 | 171 | ||||||||||||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2) | $ 179 | |||||||||||||
Altria Group | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Commercial agreement, initial payment | $ 1,000 | |||||||||||||
Commercial agreement, remaining payment | $ 1,700 | |||||||||||||
Commercial agreement, interest rate | 6% | |||||||||||||
Commercial agreement, total cash consideration | $ 2,700 | |||||||||||||
Altria Group | Subsequent Event | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Commercial agreement, remaining payment | $ 1,700 | |||||||||||||
Noncontrolling Interest Purchase Philip Morris Tütün Mamulleri Sanayi ve Ticaret A.Ş. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Interest acquired (as a percent) | 25% | |||||||||||||
Noncontrolling Interest Purchase Philip Morris Pazarlama ve Satış A.Ş. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Interest acquired (as a percent) | 24.75% | |||||||||||||
Noncontrolling interest purchase | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to acquire noncontrolling interests | $ 223 | |||||||||||||
Ownership percentage | 100% | |||||||||||||
Swedish Match AB | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Interest acquired (as a percent) | 85.87% | 94.81% | 94.81% | 94.81% | 100% | |||||||||
Payments to acquire noncontrolling interests | $ 14,460 | |||||||||||||
Other acquisitions, net of acquired cash | 13,976 | |||||||||||||
Payments to acquire additional noncontrolling interests | $ 1,495 | $ 883 | $ 0 | |||||||||||
Increase goodwill | $ 109 | |||||||||||||
Decrease in other current assets | (109) | |||||||||||||
Business combination fair value adjustment to inventories | $ 18 | $ 125 | $ 146 | |||||||||||
Business combination fair value adjustment to debt | (102) | |||||||||||||
Net revenues | 316 | |||||||||||||
Net earnings attributable to PMI | (26) | |||||||||||||
Acquisition related costs | $ 59 | |||||||||||||
Issuance of debt costs | $ 54 | $ 54 | 54 | |||||||||||
Capitalized at acquisition date | $ 37 | |||||||||||||
Swedish Match AB | Developed technology, including patents | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquired intangible assets, estimated useful life | 10 years | |||||||||||||
Finite-lived intangible assets | $ 367 | |||||||||||||
Swedish Match AB | Trademarks | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
IPR&D acquired | $ 2,077 | |||||||||||||
PMI and Swedish Match | Pro Forma | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Deferred income taxes and tax credits | $ 430 | $ 321 |
Acquisitions_ (Swedish Match AB
Acquisitions: (Swedish Match AB) (Details) - USD ($) $ in Millions | Nov. 11, 2022 | Jun. 30, 2023 | Dec. 31, 2022 |
Net assets acquired based on fair values: | |||
Goodwill | $ 19,236 | $ 19,655 | |
Swedish Match AB | |||
Net assets acquired based on fair values: | |||
Cash and cash equivalents | $ 484 | ||
Trade receivables | 135 | ||
Other receivables | 53 | ||
Inventories | 444 | ||
Other current assets | 415 | ||
Property, plant and equipment | 627 | ||
Other intangible assets | 4,512 | ||
Other non-current assets | 214 | ||
Current portion of long-term debt | 224 | ||
Accounts payable | 120 | ||
Other current liabilities | 531 | ||
Income taxes | 14 | ||
Long-term debt | 1,126 | ||
Deferred income taxes | 1,253 | ||
Other non-current liabilities | 187 | ||
Identifiable net assets acquired | 3,429 | ||
Noncontrolling interest | 2,379 | ||
Goodwill | 13,410 | ||
Total consideration transferred | 14,460 | ||
Swedish Match AB | Trademarks | |||
Net assets acquired based on fair values: | |||
IPR&D acquired | $ 2,077 | ||
Swedish Match AB | Trademarks | |||
Net assets acquired based on fair values: | |||
Acquired intangible assets, estimated useful life | 20 years | ||
Finite-lived intangible assets | $ 904 | ||
Swedish Match AB | Developed technology, including patents | |||
Net assets acquired based on fair values: | |||
Acquired intangible assets, estimated useful life | 10 years | ||
Finite-lived intangible assets | $ 367 | ||
Swedish Match AB | Customer relationships | |||
Net assets acquired based on fair values: | |||
Acquired intangible assets, estimated useful life | 10 years | ||
Finite-lived intangible assets | $ 1,164 |
Acquisitions_ (Pro Forma) (Deta
Acquisitions: (Pro Forma) (Details) - PMI and Swedish Match - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net revenues | $ 33,690 | $ 33,577 |
Net earnings attributable to PMI | $ 8,875 | $ 8,610 |
War in Ukraine_ (Details)
War in Ukraine: (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) employee | Dec. 31, 2022 USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total assets | $ 61,868 | $ 61,681 | ||
Inventories | 9,900 | 9,886 | ||
Goodwill (Note 6) | $ 19,236 | $ 19,655 | ||
War In Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | $ 80 | $ 122 | ||
War In Ukraine | Cost of sales | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | 20 | 46 | ||
War In Ukraine | Marketing, administration and research costs | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | 60 | 76 | ||
Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Number of employees | employee | 1,300 | |||
Ukraine | War In Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total assets | $ 497 | |||
Receivables | 75 | |||
Inventories | 305 | |||
Property, plant and equipment | 29 | |||
Pre-tax charge | 24 | 51 | ||
Ukraine | War In Ukraine | Cost of sales | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | 14 | 25 | ||
Ukraine | War In Ukraine | Marketing, administration and research costs | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | 10 | 26 | ||
Russia | War In Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total assets | 2,400 | |||
Cash | 561 | |||
Receivables | 465 | |||
Inventories | 932 | |||
Property, plant and equipment | 272 | |||
Goodwill (Note 6) | 164 | |||
Cumulative foreign currency translation losses | $ 1,132 | |||
Pre-tax charge | 56 | 71 | ||
Russia | War In Ukraine | Cost of sales | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | 6 | 21 | ||
Russia | War In Ukraine | Marketing, administration and research costs | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Pre-tax charge | $ 50 | $ 50 |
Stock Plans_ (Additional Inform
Stock Plans: (Additional Information) (Details) - shares | Jun. 30, 2023 | May 31, 2022 | May 31, 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) | 876,226 | ||
Percentage of voting shares that PMI may own, used in determining non-employee director status | 50% | ||
2022 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) | 22,146,010 |
Stock Plans_ (RSU Awards) (Deta
Stock Plans: (RSU Awards) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) year $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation Expense Related to RSU Awards | $ 18 | $ 10 | $ 45 | $ 31 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (in shares) | shares | 1,752,050 | 1,575,500 | ||
Weighted-average grant date fair value per RSU award granted (in dollars per share) | $ / shares | $ 101.98 | $ 104.99 | ||
Compensation Expense Related to RSU Awards | 36 | $ 35 | $ 86 | $ 74 |
Unrecognized compensation cost related to non-vested stock awards | $ 240 | $ 240 | ||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Stock awards vested during period (in shares) | shares | 1,346,307 | |||
Restricted Stock Units (RSUs) | Grant Date Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 117 | |||
Restricted Stock Units (RSUs) | Total Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 135 |
Stock Plans_ (PSU Awards) (Deta
Stock Plans: (PSU Awards) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) performanceMetric year $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation Expense Related to PSU Awards | $ 18 | $ 10 | $ 45 | $ 31 |
Disclosure of share-based compensation arrangements by payment award | During the six months ended June 30, 2023 and 2022, shares granted to eligible employees and the weighted-average grant date fair value per share related to RSU awards were as follows: Number of Weighted-Average Grant Date Fair Value Per RSU Award Granted 2023 1,752,050 $ 101.98 2022 1,575,500 $ 104.99 Compensation expense related to RSU awards was as follows: Compensation Expense Related to RSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 86 $ 36 2022 $ 74 $ 35 During the six months ended June 30, 2023 and 2022, shares granted to eligible employees and the grant date fair value per share related to PSU awards were as follows: Number of Shares Granted Weighted- Weighted- (Per Share) (Per Share) 2023 482,360 $ 102.02 $ 133.54 2022 451,790 $ 105.07 $ 143.94 Compensation expense related to PSU awards was as follows: Compensation Expense Related to PSU Awards (in millions) For the Six Months Ended June 30, For the Three Months Ended June 30, 2023 $ 45 $ 18 2022 $ 31 $ 10 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Length of performance cycle period | 3 years | |||
Absolute basis (as a percent) | 40% | 40% | ||
Currency-neutral compound annual adjusted diluted earnings per share growth rate (as a percent) | 30% | 30% | ||
Product sustainability weight (as a percent) | 20% | 20% | ||
Operational sustainability weight (as a percentage) | 10% | 10% | ||
Performance metrics predefined at time of grant | performanceMetric | 3 | |||
Aggregate weighted performance factor | 100% | |||
Number of shares of common stock issued for each vested PSU (in shares) | shares | 1 | |||
Number of shares granted (in shares) | shares | 482,360 | 451,790 | ||
Risk-free interest rate (as a percent) | 4.10% | 1.60% | ||
Expected volatility (as a percent) | 24.30% | 28.60% | ||
Unrecognized compensation cost related to non-vested stock awards | $ 60 | $ 60 | ||
Minimum retirement age | year | 58 | |||
Stock awards vested during period (in shares) | shares | 902,232 | |||
Performance Shares | Grant Date Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 83 | |||
Performance Shares | Total Fair Value | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of vested stock awards | $ 91 | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 0% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 200% | |||
Performance Share Units, Other Performance Metrics | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair value per RSU award granted (in dollars per share) | $ / shares | $ 102.02 | $ 105.07 | ||
Performance Share Units, TSR Performance Metric | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair value per RSU award granted (in dollars per share) | $ / shares | $ 133.54 | $ 143.94 |
Benefit Plans_ (Components of P
Benefit Plans: (Components of Pension and Other Employee Benefits Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | $ 6 | $ 5 | $ 28 | $ 9 |
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | (25) | (24) | (37) | (49) |
Postemployment Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | 29 | 27 | 59 | 54 |
Postretirement Benefit Costs | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Total pension and other employee benefit costs | $ 2 | $ 2 | $ 6 | $ 4 |
Benefit Plans_ (Components of N
Benefit Plans: (Components of Net Periodic Benefit Cost) (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 42 | $ 59 | $ 85 | $ 119 |
Interest cost | 63 | 18 | 129 | 38 |
Expected return on plan assets | (91) | (88) | (181) | (180) |
Amortization: | ||||
Net loss | 4 | 46 | 16 | 94 |
Prior service cost (credit) | (1) | 0 | (1) | (1) |
Net periodic pension cost | $ 17 | $ 35 | $ 48 | $ 70 |
Benefit Plans_ (Narrative) (Det
Benefit Plans: (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |||
Employer contributions | $ 72 | $ 60 | |
Anticipated additional employer contributions during the remainder of the current fiscal year | $ 56 | ||
Received a cash refund | $ 123 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net: (Additional Information) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) segment | Dec. 31, 2022 segment | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment | $ 665 | ||
Pre-tax impairment charge | $ 15 | ||
Non-amortizable intangible assets, currency movements increase (decrease) | 87 | ||
Finite lived intangible asset, currency movements increase (decrease) | (9) | ||
Amortization of intangibles | 163 | ||
Change in accumulated amortization, currency movements | (2) | ||
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | 322 | 322 | |
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 322 | 322 | |
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 322 | 322 | |
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 322 | 322 | |
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | 322 | $ 322 | |
Geographical Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Number of reportable segments | segment | 4 | 6 | |
Wellness & Healthcare | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment | $ 665 | $ 665 | |
Cost of sales | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 44 | ||
Marketing, administration and research costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 119 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net: (Movement in Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 19,655 | |
Changes due to: | ||
Impairment | (665) | |
Currency | 137 | |
Other | 109 | |
Ending balance | $ 19,236 | 19,236 |
Europe | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,370 | |
Changes due to: | ||
Impairment | 0 | |
Currency | 48 | |
Other | 0 | |
Ending balance | 1,418 | 1,418 |
SSEA, CIS & MEA | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,869 | |
Changes due to: | ||
Impairment | 0 | |
Currency | 68 | |
Other | 0 | |
Ending balance | 2,937 | 2,937 |
EA, AU & PMI DF | ||
Goodwill [Roll Forward] | ||
Beginning balance | 493 | |
Changes due to: | ||
Impairment | 0 | |
Currency | 6 | |
Other | 0 | |
Ending balance | 499 | 499 |
Americas | ||
Goodwill [Roll Forward] | ||
Beginning balance | 615 | |
Changes due to: | ||
Impairment | 0 | |
Currency | 71 | |
Other | 0 | |
Ending balance | 686 | 686 |
Swedish Match | ||
Goodwill [Roll Forward] | ||
Beginning balance | 13,296 | |
Changes due to: | ||
Impairment | 0 | |
Currency | (94) | |
Other | 109 | |
Ending balance | 13,311 | 13,311 |
Wellness & Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,012 | |
Changes due to: | ||
Impairment | (665) | (665) |
Currency | 38 | |
Other | 0 | |
Ending balance | $ 385 | $ 385 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net: (Other Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 3,418 | $ 3,346 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, accumulated amortization | 1,194 | 1,029 |
Total other intangible assets, gross | 7,824 | 7,761 |
Total other intangible assets, net | $ 6,630 | 6,732 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 15 years | |
Amortizable intangible assets, gross carrying amount | $ 2,028 | 2,050 |
Amortizable intangible assets, accumulated amortization | 720 | 674 |
Amortizable intangible assets, net | $ 1,308 | 1,376 |
Developed technology, including patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 8 years | |
Amortizable intangible assets, gross carrying amount | $ 994 | 975 |
Amortizable intangible assets, accumulated amortization | 296 | 243 |
Amortizable intangible assets, net | $ 698 | 732 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life | 10 years | |
Amortizable intangible assets, gross carrying amount | $ 1,384 | 1,390 |
Amortizable intangible assets, accumulated amortization | 178 | 112 |
Amortizable intangible assets, net | $ 1,206 | $ 1,278 |
Financial Instruments_ (Narrati
Financial Instruments: (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||||
Notional amount | $ 41,144 | $ 41,144 | $ 40,401 | ||
Cumulative fair value gain (loss) of hedged liability | 81 | 81 | |||
Level 1 | Money Market Funds | |||||
Derivative [Line Items] | |||||
Other investments | 184 | 184 | |||
Net Investment Hedging | Foreign Debt | |||||
Derivative [Line Items] | |||||
Foreign currency gain (loss) | 23 | $ 192 | 24 | $ 258 | |
Fair Value Hedging | |||||
Derivative [Line Items] | |||||
Fair value hedge amount | 915 | 915 | |||
Foreign exchange contracts | |||||
Derivative [Line Items] | |||||
Derivative instruments, gains (losses) to be reclassified to earnings | 174 | 174 | |||
Foreign exchange contracts | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | $ 20,431 | $ 20,431 | $ 21,755 |
Financial Instruments_ (Notiona
Financial Instruments: (Notional Amounts of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount | $ 41,144 | $ 40,401 |
Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 19,687 | 17,627 |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | 1,000 | 1,019 |
Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount | 26 | 0 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 20,431 | $ 21,755 |
Financial Instruments_ (Fair Va
Financial Instruments: (Fair Value of Derivative Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | $ 766 | $ 873 |
Gross amounts not offset in the condensed consolidated balance sheets - financial instruments | (355) | (346) |
Gross amounts not offset in the condensed consolidated balance sheets - cash collateral received / pledged | (240) | (341) |
Net amount | 171 | 186 |
Derivative liability fair value | 852 | 537 |
Gross amounts not offset in the condensed consolidated balance sheets - financial instruments | (355) | (346) |
Gross amounts not offset in the condensed consolidated balance sheets - cash collateral received / pledged | (173) | (48) |
Net amount | 324 | 143 |
Foreign exchange contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 357 | 376 |
Foreign exchange contracts | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 327 | 341 |
Foreign exchange contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 265 | 126 |
Foreign exchange contracts | Foreign exchange contracts | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 216 | 147 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 82 | 156 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 203 | 165 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 86 | 16 |
Interest rate contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Interest rate contracts | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Interest rate contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 38 | 27 |
Interest rate contracts | Foreign exchange contracts | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 43 | 56 |
Commodity contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Commodity contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | $ 1 | $ 0 |
Financial Instruments_ (Cash Fl
Financial Instruments: (Cash Flow and Net Investment Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ 38 | $ 650 | $ (145) | $ 885 |
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net | ||
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts | 213 | $ 169 | $ 223 | 248 |
Net investment hedges | (181) | 425 | (439) | 530 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 91 | 53 | 126 | 64 |
Foreign exchange contracts | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | 64 | 35 | 127 | 68 |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | 21 | 116 | 161 | 119 |
Foreign exchange contracts | Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 27 | 64 | 39 | 81 |
Foreign exchange contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Marketing, administration and research costs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 55 | (7) | 71 | (10) |
Foreign exchange contracts | Marketing, administration and research costs | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | (88) | 66 | (104) | 65 |
Foreign exchange contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (3) | (2) | (6) | (3) |
Foreign exchange contracts | Interest expense, net | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | 62 | 35 | 152 | 43 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts | 7 | 56 | 72 | 107 |
Interest rate contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 12 | (2) | 22 | (4) |
Interest rate contracts | Interest expense, net | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | (17) | (20) | (14) | (57) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts | (1) | 0 | (1) | 0 |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments_ (Qualify
Financial Instruments: (Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses) Net of Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Derivative (gains)/losses transferred to earnings | $ (75) | $ (46) | $ (104) | $ (55) |
Change in fair value | 187 | 191 | 246 | 301 |
Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Gain/(loss) as of beginning of period, | 296 | 105 | 266 | 4 |
Derivative (gains)/losses transferred to earnings | (75) | (46) | (104) | (55) |
Change in fair value | 187 | 191 | 246 | 301 |
Gain/(loss) as of June 30, | $ 408 | $ 250 | $ 408 | $ 250 |
Earnings Per Share_ (Details)
Earnings Per Share: (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to PMI | $ 1,568 | $ 2,233 | $ 3,563 | $ 4,564 |
Less distributed and undistributed earnings attributable to share-based payment awards | 5 | 7 | 11 | 13 |
Net earnings for basic EPS | 1,563 | 2,226 | 3,552 | 4,551 |
Net earnings for diluted EPS | $ 1,563 | $ 2,226 | $ 3,552 | $ 4,551 |
Weighted-average shares for basic EPS (in shares) | 1,552,000,000 | 1,551,000,000 | 1,552,000,000 | 1,550,000,000 |
Plus contingently issuable performance stock units (PSUs) (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | 2,000,000 |
Weighted-average shares for diluted EPS (in shares) | 1,553,000,000 | 1,552,000,000 | 1,553,000,000 | 1,552,000,000 |
Antidilutive stock awards (in shares) | 0 | 0 |
Segment Reporting_ (Segment Dat
Segment Reporting: (Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | $ 8,967 | [1],[2] | $ 7,832 | [1],[2] | $ 16,986 | [3],[4] | $ 15,578 | [3],[4] |
Operating income | 2,566 | 3,056 | 5,297 | 6,354 | ||||
Europe | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 3,402 | 3,309 | 6,312 | 6,533 | ||||
Operating income | 1,563 | 1,474 | 2,738 | 3,032 | ||||
SSEA, CIS & MEA | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 2,668 | 2,514 | 5,145 | 4,959 | ||||
Operating income | 858 | 958 | 1,570 | 1,923 | ||||
EA, AU & PMI DF | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 1,680 | 1,464 | 3,200 | 3,051 | ||||
Operating income | 544 | 528 | 1,167 | 1,213 | ||||
Americas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 476 | 469 | 921 | 893 | ||||
Operating income | 70 | 130 | 136 | 251 | ||||
Swedish Match | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 665 | 0 | 1,246 | 0 | ||||
Operating income | 264 | 0 | 457 | 0 | ||||
Wellness & Healthcare | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 76 | 76 | 162 | 142 | ||||
Operating income | (733) | (34) | (771) | (65) | ||||
Combustible Tobacco Products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 5,790 | 5,463 | 11,013 | 10,766 | ||||
Combustible Tobacco Products | Europe | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 2,108 | 2,062 | 3,924 | 3,999 | ||||
Combustible Tobacco Products | SSEA, CIS & MEA | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 2,350 | 2,203 | 4,504 | 4,398 | ||||
Combustible Tobacco Products | EA, AU & PMI DF | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 724 | 754 | 1,412 | 1,523 | ||||
Combustible Tobacco Products | Americas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 459 | 444 | 889 | 846 | ||||
Combustible Tobacco Products | Swedish Match | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 149 | 0 | 284 | 0 | ||||
Smoke-Free Products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 3,177 | 2,369 | 5,973 | 4,812 | ||||
Smoke-Free Products | Total smoke-free products excluding Wellness and Healthcare | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 3,101 | 2,293 | 5,811 | 4,670 | ||||
Smoke-Free Products | Europe | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 1,294 | 1,247 | 2,388 | 2,534 | ||||
Smoke-Free Products | SSEA, CIS & MEA | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 318 | 311 | 641 | 561 | ||||
Smoke-Free Products | EA, AU & PMI DF | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 956 | 710 | 1,788 | 1,528 | ||||
Smoke-Free Products | Americas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 17 | 25 | 32 | 47 | ||||
Smoke-Free Products | Swedish Match | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | 516 | 0 | 962 | 0 | ||||
Smoke-Free Products | Wellness & Healthcare | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total PMI net revenues | $ 76 | $ 76 | $ 162 | $ 142 | ||||
[1]Includes net revenues from related parties of $901 million and $869 million for the three months ended June 30, 2023 and 2022, respectively[2]Net of excise taxes of $12,749 million and $12,577 million for the three months ended June 30, 2023 and 2022, respectively[3]Includes net revenues from related parties of $1,774 million and $1,547 million for the six months ended June 30, 2023 and 2022, respectively[4]Net of excise tax on products of $24,048 million and $24,172 million for the six months ended June 30, 2023 and 2022, respectively |
Segment Reporting_ (Additional
Segment Reporting: (Additional Information) (Details) $ in Millions | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 segment | |
Segment Reporting Information [Line Items] | ||||||||
Goodwill and non-amortizable intangible assets impairment charge | $ 680 | $ 680 | ||||||
Contract termination charges: | 0 | $ 0 | $ 109 | $ 0 | ||||
War In Ukraine | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Pre-tax charge | $ 80 | $ 122 | ||||||
Swedish Match AB | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business combination fair value adjustment to inventories | 18 | $ 125 | $ 146 | |||||
Geographical Segment | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of reportable segments | segment | 4 | 6 | ||||||
SSEA, CIS & MEA | Net Revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Termination pre tax charge | $ (80) | |||||||
EA, AU & PMI DF | Korea | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Non-cash pre-tax charge | $ (204) | $ (204) |
Contingencies_ (Tobacco-Related
Contingencies: (Tobacco-Related Litigation) (Details) $ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||||
Mar. 01, 2019 CAD ($) | Mar. 01, 2019 USD ($) | May 27, 2015 CAD ($) manufacturer plaintiff | May 27, 2015 USD ($) manufacturer plaintiff | Jun. 20, 2012 cigarette | Jul. 10, 2009 cigarette | Oct. 30, 2015 CAD ($) | Oct. 30, 2015 USD ($) | Dec. 31, 2019 USD ($) | Jun. 30, 2023 litigationCase | |
Loss Contingencies [Line Items] | ||||||||||
Number of cases decided in favor of PM | 532 | |||||||||
Number of cases decided in favor of plaintiff | 15 | |||||||||
Cases Remaining On Appeal | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Cases on appeal | 5 | |||||||||
Case Decided In Favor Of Plaintiff | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of cases that reached final resolution in favor of PM | 10 | |||||||||
Canada | Adams | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Minimum number of cigarettes smoked | cigarette | 25,000 | |||||||||
Canada | Suzanne Jacklin | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Minimum number of cigarettes smoked | cigarette | 25,000 | |||||||||
Canada | Smoking and Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | ||||||||
Court-estimated number of members in class | plaintiff | 99,957 | 99,957 | ||||||||
Canada | Smoking and Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 15,500,000 | $ 11,700,000 | ||||||||
Punitive damages awarded | 90 | 68 | ||||||||
Damages, reduced amount | $ 13,500,000 | $ 10,200,000 | ||||||||
Canada | Smoking and Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 2,700,000 | $ 2,000,000 | $ 3,100,000 | $ 2,300,000 | ||||||
Damages allocated to subsidiary (percent) | 20% | 20% | 20% | 20% | ||||||
Punitive damages awarded | $ 30 | $ 23 | ||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount to be deposited into trust | $ 1,100,000 | $ 832,000 | ||||||||
Payment period | 60 days | 60 days | ||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Motion for security ordered by appeals court, paid by defendant | $ 226,000 | $ 171,000 | ||||||||
Amount of security ordered, funded by defendant | $ 257,000 | $ 194,000 | ||||||||
Amount of litigation charge | $ | $ 194,000 | |||||||||
Amount of litigation charge net of tax | $ | $ 142,000 | |||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | Imperial Tobacco Ltd. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Motion for security ordered by appeals court | $ 758,000 | $ 573,000 | ||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | ||||||||
Court-estimated number of members in class | plaintiff | 918,000 | 918,000 | ||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 131,000 | $ 99,000 | ||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | Judicial Ruling | RBH | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 46,000 | $ 35,000 | ||||||||
Punitive damages, value | $ 57,000 | $ 43,000 |
Contingencies_ (Number of Tobac
Contingencies: (Number of Tobacco Related Cases Pertaining to Combustible Products Pending Against Us and/or Our Subsidiaries or Indemnitees) (Details) - Combustible Products - litigationCase | Jun. 30, 2023 | Jun. 30, 2022 |
Individual Smoking and Health Cases | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 50 | 40 |
Smoking and Health Class Actions | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 9 | 9 |
Health Care Cost Recovery Actions | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 17 | 17 |
Label-Related Class Actions | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 0 | 0 |
Individual Label-Related Cases | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 5 | 5 |
Public Civil Actions | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 1 | 1 |
Contingencies_ (Verdicts and Po
Contingencies: (Verdicts and Post-Trial Developments) (Details) - Judicial Ruling ₺ in Thousands, $ in Thousands | Jun. 23, 2023 USD ($) | Jun. 23, 2023 TRY (₺) | Dec. 16, 2021 USD ($) | Dec. 16, 2021 ARS ($) | Jul. 02, 2021 USD ($) | Jul. 02, 2021 ARS ($) | Jun. 17, 2021 USD ($) | Jun. 17, 2021 ARS ($) | Mar. 01, 2019 CAD ($) | Mar. 01, 2019 USD ($) | Aug. 05, 2016 USD ($) | Aug. 05, 2016 ARS ($) | May 27, 2015 CAD ($) | May 27, 2015 USD ($) |
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 | $ 99,000,000 | ||||||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | RBH | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Punitive damages awarded | $ 46,000 | $ 35,000,000 | ||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||||||||||
Canada | Smoking and Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 15,500,000 | $ 11,700,000,000 | ||||||||||||
Punitive damages awarded | 90 | 68,000 | ||||||||||||
Awarded compensatory damages that are to be deposited into trust | 1,000,000 | 756,000,000 | ||||||||||||
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 | $ 2,000,000,000 | $ 3,100,000 | $ 2,300,000,000 | ||||||||||
Damages allocated to subsidiary (percent) | 20% | 20% | 20% | 20% | ||||||||||
Punitive damages awarded | $ 30 | $ 23,000 | ||||||||||||
Awarded compensatory damages that are to be deposited into trust | $ 200,000 | $ 151,000,000 | ||||||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | ||||||||||||
Argentina | Individual Action | Hugo Lespada | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 408 | $ 110,000 | ||||||||||||
Argentina | Individual Action | Claudia Milano | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 557 | $ 150,000 | ||||||||||||
Punitive damages awarded | $ 14,854 | $ 4,000,000 | ||||||||||||
Amount to be deposited into trust | $ 22,705 | $ 6,114,428 | ||||||||||||
Damages returned to subsidiary | $ 3,318 | $ 893,428 | ||||||||||||
Turkey | Individual Action | Senem Yilmazel | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 370 | ₺ 10 |
Contingencies_ (Smoking and Hea
Contingencies: (Smoking and Health Litigation) (Details) - Combustible Products - litigationCase | Jun. 30, 2023 | Jun. 30, 2022 |
Individual Smoking and Health Cases | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 50 | 40 |
Individual Smoking and Health Cases | Argentina | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 31 | |
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 | 13 | |
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 | Australia | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 1 | |
Smoking and Health Class Actions | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 9 | 9 |
Contingencies_ (Health Care Cos
Contingencies: (Health Care Cost Recovery Litigation) (Details) - Health Care Cost Recovery Actions | Apr. 14, 2014 patient | Oct. 17, 2008 | Mar. 13, 2008 | Feb. 26, 2008 | May 25, 2007 | May 09, 2007 | Jun. 30, 2023 litigationCase | Jun. 30, 2022 litigationCase |
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 | ||||||
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 C
Contingencies: (Label-Related Cases) (Details) - Individual Label-Related Cases - Combustible Products - litigationCase | Jun. 30, 2023 | Jun. 30, 2022 |
Loss Contingencies [Line Items] | ||
Cases brought against PM | 5 | 5 |
Italy | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 1 | |
Chile | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 4 |
Contingencies_ (Public Civil Ac
Contingencies: (Public Civil Actions) (Details) - Public Civil Actions - Combustible Products - litigationCase | Jun. 30, 2023 | Jun. 30, 2022 |
Loss Contingencies [Line Items] | ||
Cases brought against PM | 1 | 1 |
Venezuela | ||
Loss Contingencies [Line Items] | ||
Cases brought against PM | 1 |
Contingencies_ (Other Litigatio
Contingencies: (Other Litigation) (Details) - Other Litigation ฿ in Millions, $ in Millions, ₩ in Billions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | |||||||||||||||||
Jun. 15, 2022 USD ($) | Jun. 01, 2022 USD ($) | Jun. 01, 2022 THB (฿) | Jan. 26, 2017 USD ($) | Jan. 26, 2017 THB (฿) | Jan. 18, 2016 USD ($) defendant | Jan. 18, 2016 THB (฿) defendant | Jun. 30, 2020 USD ($) | Jun. 30, 2020 KRW (₩) | Mar. 31, 2020 USD ($) | Mar. 31, 2020 THB (฿) | Jan. 31, 2020 USD ($) | Jan. 31, 2020 KRW (₩) | Nov. 30, 2019 USD ($) | Nov. 30, 2019 THB (฿) | Dec. 31, 2017 USD ($) | Dec. 31, 2017 KRW (₩) | Mar. 31, 2017 USD ($) | Mar. 31, 2017 KRW (₩) | Sep. 30, 2017 USD ($) | Sep. 30, 2017 KRW (₩) | |
Loss Contingencies [Line Items] | |||||||||||||||||||||
Damages awarded | $ | $ 10.8 | ||||||||||||||||||||
Thailand | The Department of Special Investigations of the Government of Thailand | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Loss contingency, damages sought, value | $ 3.5 | ฿ 122 | $ 573 | ฿ 19,800 | $ 2,300 | ฿ 80,800 | $ 3.8 | ฿ 130 | $ 35 | ฿ 1,200 | |||||||||||
Korea | The South Korean Board Of Audit And Inspection | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Amounts paid | $ 129 | ₩ 172 | $ 204 | ₩ 272 | $ 75 | ₩ 100 | |||||||||||||||
Amount of taxes not underpaid as ruled by trial court | $ 164 | ₩ 218 | |||||||||||||||||||
Amount of alleged underpayments not underpaid as ruled by court | $ 41 | ₩ 54 | |||||||||||||||||||
Pending Litigation | Thailand | The Department of Special Investigations of the Government of Thailand | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of defendants | defendant | 7 | 7 |
Contingencies_ (Third-Party Gua
Contingencies: (Third-Party Guarantees) (Details) $ in Millions, $ in Millions | Aug. 31, 2022 CAD ($) | Aug. 31, 2022 USD ($) | Mar. 31, 2022 CAD ($) | Mar. 31, 2022 USD ($) | Oct. 17, 2020 CAD ($) | Oct. 17, 2020 USD ($) |
Canadian Government | ||||||
Loss Contingencies [Line Items] | ||||||
Project contribution from government | $ 27 | $ 22 | $ 173 | $ 131 | ||
Medicago Inc. | Financial Guarantee | ||||||
Loss Contingencies [Line Items] | ||||||
Reduction of guarantee obligation | $ 123 | $ 93 |
Income Taxes_ (Details)
Income Taxes: (Details) $ in Millions, Rp in Trillions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 USD ($) | Oct. 31, 2021 IDR (Rp) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2023 | |
Income Taxes [Line Items] | |||||||
Effective tax rate (as a percent) | 24.70% | 20.30% | 20.80% | 20% | |||
Income tax expense (benefit) | $ 560 | $ 594 | $ 988 | $ 1,213 | |||
Other tax expense (benefit) | 13 | ||||||
Amount assessed by taxing authorities | $ 260 | Rp 3.8 | |||||
Pension Plan | |||||||
Income Taxes [Line Items] | |||||||
Other tax expense (benefit) | 40 | ||||||
Swedish Match AB | |||||||
Income Taxes [Line Items] | |||||||
Income tax expense (benefit) | $ 96 | ||||||
Minimum | |||||||
Income Taxes [Line Items] | |||||||
Statute of limitations term | 3 years | ||||||
Maximum | |||||||
Income Taxes [Line Items] | |||||||
Statute of limitations term | 5 years | ||||||
Forecast | Minimum | |||||||
Income Taxes [Line Items] | |||||||
Effective tax rate (as a percent) | 20.50% | ||||||
Forecast | Maximum | |||||||
Income Taxes [Line Items] | |||||||
Effective tax rate (as a percent) | 21.50% |
Indebtedness_ (Narrative) (Deta
Indebtedness: (Narrative) (Details) | 6 Months Ended | ||||||||||||||
Feb. 17, 2023 USD ($) | Nov. 21, 2022 USD ($) | Nov. 10, 2022 USD ($) | Nov. 10, 2022 USD ($) | Nov. 07, 2022 USD ($) | Nov. 07, 2022 EUR (€) | Jun. 23, 2022 USD ($) | May 11, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Nov. 11, 2022 | Jun. 23, 2022 EUR (€) | |
Debt Instrument [Line Items] | |||||||||||||||
Principal amount | $ 6,300,000,000 | ||||||||||||||
Repayments under credit facilities related to acquisition | 4,430,000,000 | $ 0 | |||||||||||||
Long-term debt, including current maturities | 43,772,000,000 | $ 37,486,000,000 | |||||||||||||
Short Term Credit Arrangement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal amount | 2,700,000,000 | $ 1,900,000,000 | |||||||||||||
Swedish Match AB | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest acquired (as a percent) | 100% | 94.81% | 94.81% | 85.87% | |||||||||||
Senior Unsecured Bridge Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, term | 364 days | ||||||||||||||
Principal amount | $ 11,000,000,000 | $ 17,000,000,000 | |||||||||||||
Repayments under credit facilities related to acquisition | $ 4,400,000,000 | ||||||||||||||
Senior Unsecured Bridge Facility | Swedish Match AB | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowings under credit facilities related to acquisition | $ 500,000,000 | $ 8,400,000,000 | $ 7,900,000,000 | ||||||||||||
Repayments under credit facilities related to acquisition | $ 4,400,000,000 | $ 4,000,000,000 | |||||||||||||
Senior Unsecured Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal amount | $ 5,800,000,000 | € 5,500,000,000 | |||||||||||||
Senior Unsecured Term Loan | Swedish Match AB | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowings under credit facilities related to acquisition | € | € 5,500,000,000 | ||||||||||||||
Long-term debt, including current maturities | $ 6,000,000,000 | € 5,500,000,000 | $ 6,000,000,000 | € 5,500,000,000 | |||||||||||
Senior Unsecured Term Loan | Three year tranche | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, term | 3 years | ||||||||||||||
Principal amount | $ 3,200,000,000 | 3,000,000,000 | |||||||||||||
Senior Unsecured Term Loan | Three year tranche | Swedish Match AB | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowings under credit facilities related to acquisition | € | 3,000,000,000 | ||||||||||||||
Senior Unsecured Term Loan | Five year tranche | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal amount | $ 2,600,000,000 | € 2,500,000,000 | |||||||||||||
Senior Unsecured Term Loan | Five year tranche | Swedish Match AB | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowings under credit facilities related to acquisition | € | € 2,500,000,000 |
Indebtedness_ (Short-Term Borro
Indebtedness: (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 4,121 | $ 5,637 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 3,975 | $ 912 |
Average Rate | 5.20% | 4.40% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 146 | $ 295 |
Average Rate | 8.10% | 7.50% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 0 | $ 4,430 |
Average Rate | 0% | 4.90% |
Indebtedness_ (Schedule of Long
Indebtedness: (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Long-term debt, including current maturities | $ 43,772 | $ 37,486 |
Less current portion of long-term debt | 2,372 | 2,611 |
Long-term debt | 41,400 | 34,875 |
Finance lease, liability | $ 29 | 54 |
U.S. Dollar Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate | 4.347% | |
Long-term debt, including current maturities | $ 28,427 | 22,596 |
U.S. Dollar Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.875% | |
U.S. Dollar Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 6.375% | |
Euro Notes | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.877% | |
Long-term debt, including current maturities | $ 8,358 | 8,116 |
Euro Notes | Foreign Currency Obligations | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.125% | |
Euro Notes | Foreign Currency Obligations | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.125% | |
Swiss Franc Notes | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.625% | |
Long-term debt, including current maturities | $ 279 | 378 |
Euro Bank Loan | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 3.866% | |
Long-term debt, including current maturities | $ 6,010 | 5,850 |
Swedish Krona Notes | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 2.325% | |
Long-term debt, including current maturities | $ 243 | 343 |
Swedish Krona Notes | Foreign Currency Obligations | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.395% | |
Swedish Krona Notes | Foreign Currency Obligations | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 5.414% | |
Other | Foreign Currency Obligations | ||
Debt Instrument [Line Items] | ||
Average interest rate | 6.223% | |
Long-term debt, including current maturities | $ 455 | $ 203 |
Indebtedness_ (Schedule of Fair
Indebtedness: (Schedule of Fair Value) (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Level 1 | |
Debt Instrument [Line Items] | |
Fair value of outstanding long-term debt | $ 35,139 |
Level 2 | |
Debt Instrument [Line Items] | |
Fair value of outstanding long-term debt | $ 6,576 |
Indebtedness_ (Debt Issuances O
Indebtedness: (Debt Issuances Outstanding) (Details) - USD ($) | May 30, 2023 | Feb. 28, 2023 |
US Dollar Notes, 4.875%, Due February 2026 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 450,000,000 | $ 1,250,000,000 |
Interest Rate | 4.875% | 4.875% |
US Dollar Notes, 4.875%, Due February 2028 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 550,000,000 | $ 1,000,000,000 |
Interest Rate | 4.875% | 4.875% |
US Dollar Notes, 5.125%, Due February 2030 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 700,000,000 | $ 1,500,000,000 |
Interest Rate | 5.125% | 5.125% |
US Dollar Notes, 5.375%, Due February 2033 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 750,000,000 | $ 1,500,000,000 |
Interest Rate | 5.375% | 5.375% |
Indebtedness_ (Schedule of Cred
Indebtedness: (Schedule of Credit Facilities) (Details) - USD ($) | Jun. 30, 2023 | Sep. 20, 2022 | Jun. 23, 2022 | May 11, 2022 | Jan. 28, 2022 |
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | $ 6,300,000,000 | ||||
Three Hundred Sixty-Four Day Revolving Credit Expiring January 31, 2023 | |||||
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | 1,800,000,000 | ||||
Multi-year Revolving Credit Facility, Expiring February 10, 2026 | |||||
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | 2,000,000,000 | ||||
Multi-year Revolving Credit Facility, Expiring September 29, 2026 | |||||
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | $ 2,500,000,000 | ||||
Multi-year Revolving Credit Facility, Expiring September 29, 2027 | |||||
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | $ 2,300,000,000 | ||||
Multi-year Revolving Credit Facility, Expiring February 10, 2027 | |||||
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | $ 1,900,000,000 | ||||
Senior Unsecured Bridge Facility | |||||
Line of Credit Facility [Line Items] | |||||
Committed credit facilities | $ 11,000,000,000 | $ 17,000,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses: (Components of Accumulated Other Comprehensive Earnings (Losses), Net of Tax) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | $ (7,960) | $ (7,053) | $ (6,311) | $ (7,260) | $ (8,203) | $ (8,208) |
Accumulated Other Comprehensive Losses | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | (10,045) | $ (9,614) | (9,559) | (9,043) | $ (9,760) | $ (9,577) |
Currency translation adjustments | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | (8,678) | (8,003) | (6,558) | |||
Pension and other benefits | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | (1,775) | (1,822) | (2,735) | |||
Derivatives accounted for as hedges | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Total accumulated other comprehensive losses | $ 408 | $ 266 | $ 250 |
Related Parties - Equity Inve_3
Related Parties - Equity Investments and Other: (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Apr. 30, 2023 | Mar. 22, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 1,247 | $ 1,000 | ||
Difference between equity method investment carrying value and book value | 902 | 750 | ||
Dividends from unconsolidated subsidiaries | 50 | 9 | ||
Equity securities, unrealized gain (loss) | (13) | |||
Equity securities, unrealized gain (loss), net | (10) | |||
EIH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 66.73% | |||
Definite-Lived Intangibles And Other Assets | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Difference between equity method investment carrying value and book value | 34 | $ 35 | ||
Level 1 | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity securities, noncurrent | $ 313 | |||
IPM India | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Parent ownership percentage | 56.30% | |||
TTI | PMM | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling ownership percentage | 33% | |||
Megapolis Group | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 377 | |||
Ownership percentage | 23% | |||
Cumulative foreign currency translation losses | $ 548 | |||
EITA | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49% | |||
STAEM | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 25% | |||
STAEM | EITA | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 51% | |||
STAEM | Management Et Developpement Des Actifs Et Des Ressources Holding (MADAR Holding) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49% | |||
RBH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity securities | $ 3,280 | |||
UTC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 25% | |||
UTC | EIH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 38% |
Related Parties - Equity Inve_4
Related Parties - Equity Investments and Other: (Balance Sheet and Earnings Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Total PMI net revenues | $ 8,967 | [1],[2] | $ 7,832 | [1],[2] | $ 16,986 | [3],[4] | $ 15,578 | [3],[4] | ||
Expenses | 63 | 17 | 113 | 29 | ||||||
Trade receivables, related parties | [5] | 4,110 | 4,110 | $ 3,850 | ||||||
Payables | 3,786 | 3,786 | 4,076 | |||||||
Related Party | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Total PMI net revenues | 901 | 869 | 1,774 | 1,547 | ||||||
Trade receivables, related parties | 709 | 709 | 688 | |||||||
Payables | 30 | 30 | 31 | |||||||
Megapolis Group | Related Party | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Total PMI net revenues | 596 | 606 | 1,184 | 993 | ||||||
Trade receivables, related parties | 441 | 441 | 478 | |||||||
Other | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Expenses | 63 | 17 | 113 | 29 | ||||||
Other | Related Party | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Total PMI net revenues | 305 | $ 263 | 590 | $ 554 | ||||||
Trade receivables, related parties | 268 | 268 | 210 | |||||||
Payables | $ 30 | $ 30 | $ 31 | |||||||
[1]Includes net revenues from related parties of $901 million and $869 million for the three months ended June 30, 2023 and 2022, respectively[2]Net of excise taxes of $12,749 million and $12,577 million for the three months ended June 30, 2023 and 2022, respectively[3]Includes net revenues from related parties of $1,774 million and $1,547 million for the six months ended June 30, 2023 and 2022, respectively[4]Net of excise tax on products of $24,048 million and $24,172 million for the six months ended June 30, 2023 and 2022, respectively[5] Includes trade receivables from related parties of $709 million and $688 million as of June 30, 2023, and December 31, 2022, respectively (less allowances of $29 million as of June 30, 2023 and $7 million as of December 31, 2022). For further details, see Note 14. Related Parties - Equity Investments and Other. |
Sale of Accounts Receivable_ (D
Sale of Accounts Receivable: (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) arrangement | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) arrangement | Jun. 30, 2022 USD ($) | |
Sale of Accounts Receivable [Abstract] | ||||
Trade receivable, arrangement | arrangement | 2 | 2 | ||
Servicing liability | $ 0 | $ 0 | $ 0 | $ 0 |
Cumulative trade receivables sold | 6,100,000,000 | 5,600,000,000 | ||
Trade receivables sold and derecognized that remain uncollected | 683,000,000 | 656,000,000 | 683,000,000 | 656,000,000 |
Gain (loss) on sale of accounts receivable | $ (14,000,000) | $ (5,000,000) | $ (24,000,000) | $ (8,000,000) |
Product Warranty_ (Narrative) (
Product Warranty: (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Standard product warranty term | 12 months |
Product Warranty_ (Movement in
Product Warranty: (Movement in Product Warranty Obligations) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 104 | $ 113 |
Changes due to: | ||
Warranties issued | 43 | 107 |
Settlements | (46) | (114) |
Currency/Other | (2) | (2) |
Balance at end of period | $ 99 | $ 104 |
Asset Impairment and Exit Cos_3
Asset Impairment and Exit Costs: (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 0 | $ 0 | $ 109 | $ 0 | |
Goodwill and non-amortizable intangible assets impairment charge | $ 680 | 680 | |||
e-Vapor Products Manufacturing Optimization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 109 | ||||
Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | 78 | ||||
Contract Termination | e-Vapor Products Manufacturing Optimization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | 78 | ||||
Finance Lease Termination | e-Vapor Products Manufacturing Optimization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | 21 | ||||
Asset Impairment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 31 | ||||
Asset Impairment | e-Vapor Products Manufacturing Optimization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 31 |
Asset Impairment and Exit Cos_4
Asset Impairment and Exit Costs: (Asset Impairment and Exit Costs by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | $ 0 | $ 0 | $ 109 | $ 0 |
Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 78 | |||
Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 31 | |||
Europe | Operating Segments | Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | $ 35 | |||
Europe | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 14 | |||
SSEA, CIS & MEA | Operating Segments | Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 25 | |||
SSEA, CIS & MEA | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 9 | |||
EA, AU & PMI DF | Operating Segments | Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 15 | |||
EA, AU & PMI DF | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 6 | |||
Americas | Operating Segments | Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | 3 | |||
Americas | Operating Segments | Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contract termination charges: | $ 2 |
Asset Impairment and Exit Cos_5
Asset Impairment and Exit Costs: (Movement in Exit Cost Liabilities) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Movement in exit cost liabilities | |
Liability balance, January 1, 2023 | $ 40 |
Charges, net | 78 |
Cash spent | (24) |
Currency/other | 2 |
Liability balance, June 30, 2023 | $ 96 |
Leases_ (Details)
Leases: (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 66 | $ 64 | $ 133 | $ 126 |
Amortization of right-of-use assets | 14 | 31 | 28 | 47 |
Short-term lease cost | 15 | 16 | 29 | 30 |
Variable lease cost | 7 | 5 | 14 | 11 |
Total lease cost | $ 102 | $ 116 | $ 204 | $ 214 |
Supply Chain Financing_ (Detail
Supply Chain Financing: (Details) - USD ($) $ in Billions | Jun. 30, 2023 | Dec. 31, 2022 |
Supplier Finance Program [Line Items] | ||
Supply chain payment terms | 120 days | |
Supply Chain Financing Program | ||
Supplier Finance Program [Line Items] | ||
Supply chain financing, obligation, current | $ 0.9 | $ 1.1 |