Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33708 | ||
Entity Registrant Name | PHILIP MORRIS INTERNATIONAL INC. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 13-3435103 | ||
Entity Address, Address Line One | 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 | ||
Title of 12(g) Security | None | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 152 | ||
Entity Common Stock, Shares Outstanding | 1,552,456,597 | ||
Documents Incorporated by Reference | Parts Into Which Incorporated Portions of the registrant’s definitive proxy statement for use in connection with its annual meeting of shareholders to be held on May 8, 2024, to be filed with the Securities and Exchange Commission on or about March 28, 2024. Part III | ||
Entity Central Index Key | 0001413329 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, no par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | PM | ||
Security Exchange Name | NYSE | ||
2.875% 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 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers SA |
Auditor Location | Lausanne, Switzerland |
Auditor Firm ID | 1358 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Net revenues 1 & 2 (Notes 6 & 13) | [1],[2] | $ 35,174 | $ 31,762 | $ 31,405 |
Cost of sales 3 (Notes 4 & 5) | [3] | 12,893 | 11,402 | 10,030 |
Gross profit | 22,281 | 20,360 | 21,375 | |
Marketing, administration and research costs 4 (Notes 3, 4, 5, 13, 18 & 20) | [4] | 10,060 | 8,114 | 8,400 |
Impairment of goodwill (Note 5) | 665 | 0 | 0 | |
Operating income | 11,556 | 12,246 | 12,975 | |
Interest expense, net (Note 15) | 1,061 | 588 | 628 | |
Pension and other employee benefit costs (Note 14) | 45 | 24 | 115 | |
Earnings before income taxes | 10,450 | 11,634 | 12,232 | |
Provision for income taxes (Note 12) | 2,339 | 2,244 | 2,671 | |
Equity investments and securities (income)/loss, net | (157) | (137) | (149) | |
Net earnings | 8,268 | 9,527 | 9,710 | |
Net earnings attributable to noncontrolling interests | 455 | 479 | 601 | |
Net earnings attributable to PMI | $ 7,813 | $ 9,048 | $ 9,109 | |
Per share data (Note 11): | ||||
Basic earnings per share (in dollars per share) | $ 5.02 | $ 5.82 | $ 5.83 | |
Diluted earnings per share (in dollars per share) | $ 5.02 | $ 5.81 | $ 5.83 | |
[1] (2) Net of excise tax on products of $49,404 million, $48,958 million and $50,818 million for the years ended December 31, 2023, 2022 and 2021, respectively (1) Includes net revenues from related parties of $3,553 million, $3,658 million and $3,330 million for the years ended December 31, 2023, 2022 and 2021, respectively (3) Includes an impairment charge for other intangibles of $112 million for the year ended December 31, 2022. For further details, see Note 5. Goodwill and Other Intangible Assets, net (4) Includes an impairment charge for other intangibles of $15 million and a charge of $204 million for the South Korea indirect tax charge for the year ended December 31, 2023. For further details, see Note 5. Goodwill and Other Intangible Assets, net and Note 18. Contingencies |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 8,268 | $ 9,527 | $ 9,710 |
Change in currency translation adjustments: | |||
Unrealized gains (losses), net of income taxes of $156 in 2023, $(169) in 2022 and $(58) in 2021 | (1,643) | (1,268) | 58 |
(Gains)/losses transferred to earnings, net of income taxes of $0 in 2023, 2022 and 2021 | 12 | 0 | 0 |
Change in net loss and prior service cost: | |||
Net gains (losses) and prior service costs, net of income taxes of $182 in 2023, $(132) in 2022 and $(210) in 2021 | (861) | 843 | 1,055 |
Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(28) in 2023, $(49) in 2022 and $(72) in 2021 | 87 | 217 | 323 |
Change in fair value of derivatives accounted for as hedges: | |||
Gains (losses) recognized, net of income taxes of $(30) in 2023, $(99) in 2022 and $(20) in 2021 | 195 | 481 | 124 |
(Gains) losses transferred to earnings, net of income taxes of $32 in 2023, $35 in 2022 and $7 in 2021 | (220) | (219) | (35) |
Total other comprehensive earnings (losses) | (2,430) | 54 | 1,525 |
Total comprehensive earnings | 5,838 | 9,581 | 11,235 |
Less comprehensive earnings attributable to: | |||
Noncontrolling interests | 281 | 515 | 522 |
Comprehensive earnings attributable to PMI | $ 5,557 | $ 9,066 | $ 10,713 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses), net of income taxes of $156 in 2023, $(169) in 2022 and $(58) in 2021 | $ 156 | $ (169) | $ (58) |
(Gains)/losses transferred to earnings, net of income taxes of $0 in 2023, 2022 and 2021 | 0 | 0 | 0 |
Net gains (losses) and prior service costs, net of income taxes of $182 in 2023, $(132) in 2022 and $(210) in 2021 | 182 | (132) | (210) |
Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(28) in 2023, $(49) in 2022 and $(72) in 2021 | (28) | (49) | (72) |
Gains (losses) recognized, net of income taxes of $(30) in 2023, $(99) in 2022 and $(20) in 2021 | (30) | (99) | (20) |
(Gains) losses transferred to earnings, net of income taxes of $32 in 2023, $35 in 2022 and $7 in 2021 | $ 32 | $ 35 | $ 7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | $ 3,060 | $ 3,207 | |
Trade receivables (less allowances of $79 in 2023 and $42 in 2022) (1) | [1] | 3,461 | 3,850 |
Other receivables (less allowances of $35 in 2023 and $32 in 2022) | 930 | 906 | |
Inventories: | |||
Leaf tobacco | 1,942 | 1,674 | |
Other raw materials | 2,293 | 2,028 | |
Finished product | 6,539 | 6,184 | |
Total inventory, net | 10,774 | 9,886 | |
Other current assets (Note 3) | 1,530 | 1,770 | |
Total current assets | 19,755 | 19,619 | |
Property, plant and equipment, at cost: | |||
Land and land improvements | 550 | 545 | |
Buildings and building equipment | 4,617 | 4,291 | |
Machinery and equipment | 10,713 | 9,549 | |
Construction in progress | 1,200 | 1,058 | |
Property plant and equipment, gross | 17,080 | 15,443 | |
Less: accumulated depreciation | 9,564 | 8,733 | |
Property plant and equipment, net | 7,516 | 6,710 | |
Goodwill (Note 5) | 16,779 | 19,655 | |
Other intangible assets, net (Note 5) | 9,864 | 6,732 | |
Equity investments (Note 6) | 4,929 | 4,431 | |
Deferred income taxes | 814 | 603 | |
Other assets (less allowances of $25 in 2023 and $20 in 2022) (Note 3) | 5,647 | 3,931 | |
Total Assets | 65,304 | 61,681 | |
Liabilities | |||
Short-term borrowings (Note 8) | 1,968 | 5,637 | |
Current portion of long-term debt (Note 8) | 4,698 | 2,611 | |
Accounts payable | 4,143 | 4,076 | |
Accrued liabilities: | |||
Marketing and selling | 862 | 695 | |
Taxes, except income taxes | 7,514 | 7,440 | |
Employment costs | 1,262 | 1,168 | |
Dividends payable | 2,041 | 1,990 | |
Other | 2,737 | 2,679 | |
Income taxes | 1,158 | 1,040 | |
Total current liabilities | 26,383 | 27,336 | |
Long-term debt (Note 8) | 41,243 | 34,875 | |
Deferred income taxes | 2,335 | 1,956 | |
Employment costs | 3,046 | 1,984 | |
Income taxes and other liabilities (Note 12) | 1,743 | 1,841 | |
Total liabilities | 74,750 | 67,992 | |
Contingencies (Note 18) | |||
Stockholders’ (Deficit) Equity | |||
Common stock, no par value (2,109,316,331 shares issued in 2023 and 2022) (Note 9) | 0 | 0 | |
Additional paid-in capital | 2,285 | 2,230 | |
Earnings reinvested in the business | 34,090 | 34,289 | |
Accumulated other comprehensive losses (Note 17) | (11,815) | (9,559) | |
Total stockholders' equity before treasury stock | 24,560 | 26,960 | |
Less: cost of repurchased stock (556,891,800 and 559,098,620 shares in 2023 and 2022, respectively) | 35,785 | 35,917 | |
Total PMI stockholders’ deficit | (11,225) | (8,957) | |
Noncontrolling interests | 1,779 | 2,646 | |
Total stockholders’ deficit | (9,446) | (6,311) | |
Total Liabilities and Stockholders’ (Deficit) Equity | $ 65,304 | $ 61,681 | |
[1] (1) Includes trade receivables from related parties of $710 million and $688 million as of December 31, 2023, and 2022, respectively. For further details, see Note 6. Related Parties - Equity Investments and Other. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Trade receivables, allowances | $ 79 | $ 42 | |
Other receivables, allowances | 35 | 32 | |
Other assets, noncurrent, allowances for long-term receivables | $ 25 | $ 20 | |
Common stock, shares issued (in shares) | 2,109,316,331 | 2,109,316,331 | |
Repurchased stock, shares (in shares) | 556,891,800 | 559,098,620 | |
trade receivables | [1] | $ 3,461 | $ 3,850 |
Related Party | |||
trade receivables | $ 710 | $ 688 | |
[1] (1) Includes trade receivables from related parties of $710 million and $688 million as of December 31, 2023, and 2022, respectively. For further details, see Note 6. Related Parties - Equity Investments and Other. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||||
Net earnings | $ 8,268 | $ 9,527 | $ 9,710 | |
Adjustments to reconcile net earnings to operating cash flows: | ||||
Depreciation and amortization expense | 1,398 | 1,077 | 998 | |
Impairment of goodwill and other intangibles (Note 5) | 680 | 112 | 0 | |
Deferred income tax (benefit) provision | (330) | (234) | (17) | |
Asset impairment and exit costs, net of cash paid (Note 20) | 30 | (93) | (22) | |
Cash effects of changes, net of the effects from acquired companies: | ||||
Receivables, net (1) | [1] | 314 | (871) | (198) |
Inventories | (862) | (1,287) | 549 | |
Accounts payable | (288) | 719 | 653 | |
Accrued liabilities and other current assets | (232) | 1,862 | 623 | |
Income taxes | (232) | (261) | (260) | |
Pension plan contributions, net of refunds (Note 14) | (21) | 3 | (269) | |
Other | 479 | 249 | 200 | |
Net cash provided by operating activities | 9,204 | 10,803 | 11,967 | |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||||
Capital expenditures | (1,321) | (1,077) | (748) | |
Altria Group, Inc. agreement (Note 3) | (1,775) | (1,002) | 0 | |
Equity investments | (111) | (20) | (34) | |
Net investment hedges and other derivatives (Note 16) | (660) | 284 | 466 | |
Other | 269 | 112 | 69 | |
Net cash used in investing activities | (3,598) | (15,679) | (2,358) | |
Short-term borrowing activity by original maturity: | ||||
Net issuances (repayments) - maturities of 90 days or less | 530 | 876 | 0 | |
Issuances - maturities longer than 90 days | 1,366 | 934 | 0 | |
Repayments - maturities longer than 90 days | (1,172) | (795) | 0 | |
Borrowings under credit facilities related to Swedish Match AB acquisition | 0 | 13,920 | 0 | |
Repayments under credit facilities related to Swedish Match AB acquisition | (4,430) | (4,000) | 0 | |
Long-term debt proceeds | 9,959 | 5,965 | 0 | |
Long-term debt repaid | (2,551) | (2,724) | (3,042) | |
Repurchases of common stock | 0 | (209) | (775) | |
Dividends paid | (7,964) | (7,812) | (7,580) | |
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | (883) | (1,495) | 0 | |
Payments to noncontrolling interests and Other (Note 3) | (437) | (854) | (580) | |
Net cash provided by (used in) financing activities | (5,582) | 3,806 | (11,977) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (95) | (213) | (417) | |
Cash, cash equivalents and restricted cash: | ||||
Increase (Decrease) | [2] | (71) | (1,283) | (2,785) |
Balance at beginning of year | [2] | 3,217 | 4,500 | 7,285 |
Balance at end of year | [2] | 3,146 | 3,217 | 4,500 |
Cash Paid: | ||||
Interest | 1,342 | 717 | 716 | |
Income taxes | 2,952 | 2,751 | 2,936 | |
Swedish Match | ||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||||
Acquisitions, net of acquired cash (Note 3) | 0 | (13,976) | 0 | |
Short-term borrowing activity by original maturity: | ||||
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | (883) | |||
Series of Individually Immaterial Business Acquisitions | ||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||||
Acquisitions, net of acquired cash (Note 3) | $ 0 | $ 0 | $ (2,111) | |
[1]Includes amounts from related parties of $(154) million, $(166) million and $(149) million in 2023, 2022 and 2021, respectively[2]The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $86 million, $10 million and $4 million as of December 31, 2023, 2022 and 2021, respectively, which were included in other current assets in the consolidated balance sheets. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Receivables, net (1) | [1] | $ 314 | $ (871) | $ (198) |
Restricted cash | 86 | 10 | 4 | |
Related Party | ||||
Receivables, net (1) | $ 154 | $ 166 | $ 149 | |
[1]Includes amounts from related parties of $(154) million, $(166) million and $(149) million in 2023, 2022 and 2021, respectively |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested in the Business | Total accumulated other comprehensive losses | Cost of Repurchased Stock | Noncontrolling Interests |
Beginning balance at Dec. 31, 2020 | $ (10,631) | $ 0 | $ 2,105 | $ 31,638 | $ (11,181) | $ (35,129) | $ 1,936 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 9,710 | 9,109 | 601 | ||||
Other comprehensive earnings (losses), net of income taxes | 1,525 | 1,604 | (79) | ||||
Issuance of stock awards (Note 10) | 197 | 119 | 78 | ||||
Dividends declared | (7,665) | (7,665) | |||||
Dividends paid to noncontrolling interests | (560) | (560) | |||||
Common stock repurchased | (785) | (785) | |||||
Other | 1 | 1 | 0 | ||||
Ending balance at Dec. 31, 2021 | (8,208) | 0 | 2,225 | 33,082 | (9,577) | (35,836) | 1,898 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 9,527 | 9,048 | 479 | ||||
Other comprehensive earnings (losses), net of income taxes | 54 | 189 | (135) | ||||
Issuance of stock awards (Note 10) | 155 | 37 | 118 | ||||
Dividends declared | (7,841) | (7,841) | |||||
Dividends paid to noncontrolling interests | (472) | (472) | |||||
Common stock repurchased | (199) | (199) | |||||
Acquisitions (Note 3) | 2,379 | 2,379 | |||||
Sale (purchases) of subsidiary shares to/(from) noncontrolling interests (Note 3) | (1,706) | (32) | (171) | (1,503) | |||
Ending balance at Dec. 31, 2022 | (6,311) | 0 | 2,230 | 34,289 | (9,559) | (35,917) | 2,646 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 8,268 | 7,813 | 455 | ||||
Other comprehensive earnings (losses), net of income taxes | (2,430) | (2,436) | 6 | ||||
Issuance of stock awards (Note 10) | 193 | 61 | 132 | ||||
Dividends declared | (8,012) | (8,012) | |||||
Dividends paid to noncontrolling interests | (497) | (497) | |||||
Noncontrolling Interest, Increase (Decrease) From Redemptions Or Purchase Of Interests | 657 | 6 | (180) | 831 | |||
Ending balance at Dec. 31, 2023 | $ (9,446) | $ 0 | $ 2,285 | $ 34,090 | $ (11,815) | $ (35,785) | $ 1,779 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 5.14 | $ 5.04 | $ 4.90 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Net revenues 1 & 2 (Notes 6 & 13) | [1],[2] | $ 35,174 | $ 31,762 | $ 31,405 |
Excise taxes on products | 49,404 | 48,958 | 50,818 | |
Impairment of intangible assets | 112 | |||
Impairment of goodwill and other intangibles (Note 5) | 680 | 112 | 0 | |
Korea | EA, AU & PMI DF | ||||
Non-cash pre-tax charge | 204 | |||
Related Party | ||||
Net revenues 1 & 2 (Notes 6 & 13) | $ 3,553 | $ 3,658 | $ 3,330 | |
[1] (2) Net of excise tax on products of $49,404 million, $48,958 million and $50,818 million for the years ended December 31, 2023, 2022 and 2021, respectively (1) Includes net revenues from related parties of $3,553 million, $3,658 million and $3,330 million for the years ended December 31, 2023, 2022 and 2021, respectively |
Background and Basis of Present
Background and Basis of Presentation: | 12 Months Ended |
Dec. 31, 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 (also referred to herein as "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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and expenses during the reporting periods. Significant estimates and assumptions include, among other things: pension and benefit plan assumptions; useful lives and valuation assumptions of goodwill and other intangible assets; valuation assumptions for non-marketable equity securities; marketing programs, and income taxes. Actual results could differ from those estimates. The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. Investments without readily determinable fair values, non-marketable equity securities, are measured and recorded using a measurement alternative that values the security at cost minus any impairment. All intercompany transactions and balances have been eliminated. In the 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. 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 on these acquisitions, see Note 3. Acquisitions and Note 13. 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 5. Goodwill and Other Intangible Assets, net. |
Summary of Significant Accounti
Summary of Significant Accounting Policies: | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies: | Summary of Significant Accounting Policies: Acquisitions PMI uses the acquisition method of accounting for acquired businesses. Under the acquisition method, PMI’s consolidated financial statements reflect the operations of an acquired business starting from the closing date of the acquisition. PMI allocates the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date. Any residual purchase price is recorded as goodwill. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration are recognized in marketing, administration and research costs in the consolidated statement of earnings. Transaction costs are expensed as incurred. If PMI determines that assets acquired do not meet the definition of a business, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded. In an asset acquisition, acquired in-process research and development ("IPR&D") with no alternative future use is charged to expense. Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Depreciation and Amortization Property, plant and equipment are stated at historical cost and depreciated primarily using the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated primarily over periods ranging from 3 to 15 years, and buildings and building improvements primarily over periods up to 40 years. Definite-lived intangible assets are amortized over their useful lives. For further details, see Note 5. Goodwill and Other Intangible Assets, net . Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. Fair value measurements PMI follows ASC 820, Fair Value Measurements and Disclosures with respect to assets and liabilities that are measured at fair value. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of input that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Foreign currency translation PMI translates the results of operations of its subsidiaries and affiliates, except those operating in highly inflationary economies, using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. PMI applies highly inflationary accounting if the cumulative inflation rate in an economy for a three-year period meets or exceeds 100%. Subsidiaries operating in highly inflationary economies use the U.S. dollar as the functional currency. Monetary assets and liabilities are translated at exchange rates in effect at the balance sheet date while non-monetary assets and liabilities are translated at historical exchange rates. Exchange gains and losses resulting from remeasurement adjustments are recorded within marketing, administration and research costs in the consolidated statements of earnings. Goodwill and non-amortizable intangible assets valuation PMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. Impairment of long-lived assets PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the lower of carrying value or estimated proceeds to be received less costs of disposal. Investment in non-marketable equity securities Non-marketable equity securities are subject to periodic impairment reviews during which PMI considers both qualitative and quantitative factors that may have a significant impact on the investees' fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. Impairment of equity method investments Equity method investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. PMI determines whether a loss is other than temporary by considering the length of time and extent to which the fair value of the equity investment has been less than the carrying amount, the financial condition of the equity investment, and the intent to retain the investment for a period of time is sufficient to allow for any anticipated recovery in market value. Income taxes Income taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. PMI recognizes income taxes associated with Global Intangible Low-Taxed Income ("GILTI") taxes as current period expense rather than including these amounts in the measurement of deferred taxes. Inventories Inventories are stated at the lower of cost or net realizable value. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. Leases PMI determines that a contract contains a lease if the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense is amortized based on production activity or the lease term. Lease expense is recorded in cost of sales or marketing, administration and research costs depending on the nature of the leased item. At lease commencement, PMI recognizes lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominately all of its leases. The recognition of the right-of-use asset and lease liability includes renewal options when it is reasonably certain that they will be exercised. Certain of PMI’s leases include payments that are based on changes to an index or on actual usage. These lease payments are adjusted periodically and are included within variable lease costs. PMI accounts for lease and nonlease components as a single-lease component with the exception of its vehicle leases, of which PMI accounts for the lease components separately from the nonlease components. Additionally, leases with an initial term of 12 months or less are not included in the right-of-use asset or lease liability on the consolidated statement of financial position. Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and smoke-free products, including heat-not-burn, vapor and oral nicotine products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. In certain instances, PMI facilitates shipping and handling activities after control has transferred to the customer. PMI has elected to record all shipping and handling activities as costs to fulfill a contract. The shipping and handling costs that have not been incurred at the time revenue is recognized are accrued. The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration, where applicable. Such variable consideration is typically not constrained and is estimated based on the most likely amount that PMI expects to be entitled to under the terms of the contracts with customers, historical experience of discount or rebate redemption, where relevant, and the terms of any underlying discount or rebate programs, which may change from time to time as the business and product categories evolve. PMI has elected to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Estimated costs associated with warranty programs are generally provided for in cost of sales in the period the related revenues are recognized. Research and Development and Acquired In-Process Research and Development ("IPR&D") Research and development costs are expensed as incurred. In a business combination, the fair value of IPR&D acquired is initially capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the projects. Upon completion, a determination as to the useful life is performed and the intangible asset is accounted for as a definite-lived intangible asset. Both the indefinite and definite-lived intangible assets are subject to impairment testing annually or more frequently if indicators exist. In an asset acquisition, the initial cost to acquire the IPR&D is expensed in the consolidated statements of earnings when the project has no alternative future use. PMI records these costs within marketing, administration and research costs in its consolidated statements of earnings. Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 10. Stock Plans . |
Acquisitions_
Acquisitions: | 12 Months Ended |
Dec. 31, 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 8. 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 initiate arbitral proceedings 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 consolidated statements of cash flows for the year ended December 31, 2023. While PMI paid the referenced amounts and acquired legal title to the shares, under the Swedish Companies Act the redemption process was not complete until the final redemption price was determined by an arbitral tribunal. On September 12, 2023, the arbitral tribunal determined the final redemption price to be Swedish krona (SEK) 115.07, unchanged from the SEK 115.07 that PMI paid per share in connection with obtaining legal title to the shares. This process was completed in the fourth quarter of 2023 when the opportunity to appeal the arbitral tribunal determination ended. 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. In November 2023, PMI finalized all measurement period adjustments related to the Swedish Match acquisition. The table below summarizes the final purchase price allocation for the fair value of assets acquired and liabilities assumed as of the acquisition date: (in millions) Preliminary Purchase Price Allocation Recognized as of the acquisition date Measurement Period Adjustments during 2023 Final Purchase Price Allocation Recognized as of Cash and cash equivalents $ 484 $ — $ 484 Trade receivables 135 — 135 Other receivables 53 — 53 Inventories 444 (7) 437 Other current assets 524 (109) 415 Property, plant and equipment 627 50 677 Other intangible assets 4,512 3,356 7,868 Other non-current assets 214 2 216 Current portion of long-term debt 224 — 224 Accounts payable 120 — 120 Other current liabilities 531 1 532 Income taxes 14 — 14 Long-term debt 1,126 (5) 1,121 Deferred income taxes 1,253 717 1,970 Other non-current liabilities 187 9 196 Identifiable net assets acquired 3,538 2,570 6,108 Noncontrolling interest 2,379 — 2,379 Goodwill 13,301 (2,570) 10,731 Total consideration transferred $ 14,460 $ — $ 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 primarily determined using readily available market prices as of the acquisition date and the total purchase price adjustment of $(107) 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 $ 3,133 Trademarks Amortizable 20 - 30 years 1,067 Developed technology, including patents 10 years 113 Customer relationships 6 - 15 years 3,555 Total identifiable intangible assets $ 7,868 The significant assumptions used in determining the fair values of the identifiable intangible assets included royalty rates, revenue growth rates, profit margins, customer attrition rates and discount rates. Trademarks primarily relate to $3,133 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 determined to have a useful life ranging between 20 - 30 years. The trademarks have been valued using the relief from royalty method supported by revenue growth rate assumptions and royalty rates disaggregated at the individual trademark level. Developed technology, including patents, relates to the nicotine pouch technology of $113 million. These patents have been assigned a useful life of 10 years, which is in line with their protection period and have been valued using the comparable transactions and income methods. Customer relationships have been valued by categories of customers and geographic locations, namely the U.S. market, Scandinavia, and other markets using the multiple periods excess earnings method. The significant assumptions included customer attrition rates disaggregated at the customer category level, the revenue growth rates, as well as profit margins. 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 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 consolidated statements of earnings for the year ended December 31, 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 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 $ 33,579 $ 33,488 Net earnings attributable to PMI $ 8,779 $ 8,484 AG Snus - On May 6, 2021, PMI acquired 100% of AG Snus Aktieselskab ("AG Snus"), a company based in Denmark, and its Swedish subsidiary Tobacco House of Sweden AB fully owned by AG Snus, which operates in the oral tobacco (i.e. snus) and modern oral (i.e. nicotine pouches) product categories. The purchase price was $28 million in cash, net of cash acquired, with additional contingent payments of up to $10 million, primarily relating to product development and performance targets over a less than two-year period. In the fourth quarter of 2022, the additional contingent payment was settled for $9 million. The operating results of AG Snus are included in the Europe segment, and were not material. Fertin Pharma – On September 15, 2021, PMI acquired 100% of Fertin Pharma A/S (“Fertin Pharma”), a company based in Denmark. Fertin Pharma is a developer and manufacturer of pharmaceutical and well-being products based on oral and intra-oral delivery systems. The acquisition was funded with existing cash. The total consideration of $821 million (DKK 5.2 billion) included cash of $580 million and the payment of $241 million related to the settlement of Fertin Pharma’s indebtedness. The purchase price of $821 million was allocated to cash ($24 million), current assets including receivables and inventories ($69 million), non-current assets including property, plant and equipment ($228 million), goodwill ($378 million), and other intangible assets ($245 million, which primarily consisted of customer relationships, developed technology, and in-process research and development ("IPR&D")), partially offset by current liabilities ($44 million, which primarily consisted of accrued liabilities and accounts payable) and non-current liabilities ($79 million, primarily deferred income tax). Goodwill is primarily attributable to future growth opportunities provided by acquired R&D capabilities and any intangibles that did not qualify for separate recognition. The goodwill is not deductible for income tax purposes. The amortizable intangible assets are being amortized over their estimated useful lives of 8 to 19 years. During 2022, PMI did not record any measurement period adjustments to the purchase price allocation. The final purchase price allocation was reflected in the consolidated balance sheets as of December 31, 2022. Vectura – During the third quarter and up to September 15, 2021, PMI acquired a controlling interest of 74.77% of the total issued shares in Vectura Group plc (“Vectura”), an inhaled therapeutics company based in the United Kingdom. The shares were acquired through a series of open market purchases and acceptances of the tender offer at a price of 165 pence per share. As a result of additional acceptances of the offer and the exercise of the right to acquire compulsorily the Vectura shares, in accordance with the applicable English law, PMI completed the acquisition of 100% of Vectura in the fourth quarter of 2021. The acquisition was funded with existing cash from a designated account operated solely for the purpose of funding this acquisition. The total purchase price of $1,384 million (GBP 1.0 billion) for 100% of the Vectura shares was allocated to cash ($136 million), current assets including receivables and inventories ($89 million), non-current assets including property, plant and equipment ($67 million), goodwill ($780 million), and other intangible assets ($486 million, which primarily consisted of developed technology, and IPR&D), partially offset by current liabilities ($100 million, primarily accrued liabilities), and non-current liabilities ($74 million, primarily deferred income tax). Goodwill is primarily attributable to future growth opportunities provided by acquired R&D capabilities and any intangibles that did not qualify for separate recognition. The goodwill is not deductible for income tax purposes. The amortizable intangible assets are being amortized over their estimated useful lives of 3 to 13 years. During 2022, 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 to goodwill of $190 million. The increase was primarily due to a decrease in other intangible assets ($233 million), and a decrease in deferred income tax liabilities ($43 million). The final purchase price allocation was reflected in the consolidated balance sheets as of December 31, 2022. Pro forma results of operations for AG Snus, Fertin Pharma and Vectura have not been presented as the aggregate impact is not material to PMI's consolidated statements of earnings. 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 hold 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 consolidated balance sheets as of December 31, 2023 and 2022. The remaining consideration of $1.7 billion plus interest was paid to Altria on July 14, 2023 and has been accounted for within other assets in PMI's consolidated balance sheets as of December 31, 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 in the U.S. For further details on PMI's agreement with Altria, see Note 18. Contingencies . Asset Acquisition On August 9, 2021, PMI acquired 100% of OtiTopic, Inc., a U.S. respiratory drug development company with a late-stage dry powder inhalation aspirin treatment for acute myocardial infarction. The transaction price was $38 million in cash, plus transaction costs, with additional contingent payment of $13 million, primarily related to certain key milestones that PMI deemed probable. Additionally, PMI may owe up to $25 million in future additional contingent payments dependent upon the achievement of certain milestones. PMI accounted for this transaction as an asset acquisition since the IPR&D of the dry powder inhalation aspirin treatment represented substantially all of the fair value of the gross assets acquired. At the date of acquisition, PMI determined that the acquired IPR&D had no alternative future use. As a result, PMI recorded a charge of $51 million to research and development costs within marketing, administration and research costs As previously discussed in Note 1. Background and Basis of Presentation on March 31, 2022, PMI launched a Wellness and Healthcare business, Vectura Fertin Pharma, which consolidated Fertin Pharma, Vectura and OtiTopic, Inc. into one operating segment. |
War in Ukraine_
War in Ukraine: | 12 Months Ended |
Dec. 31, 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 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. PMI is not aware of any major damage to its production facilities, inventories or other assets in Ukraine. On June 20, 2023, PMI announced the investment of $30 million in a new production facility in the Lviv region, in Western Ukraine. In the fourth quarter of 2023, as a result of the completion of certain preparatory work for this new production facility, PMI recorded impairment of certain long-lived assets. As of December 31, 2023, PMI’s Ukrainian operations had approximately $446 million in total assets, excluding intercompany balances. These total assets included $82 million and $304 million in receivables and inventories, 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 December 31, 2023, it has not recorded an impairment of long-lived and other assets. However, PMI recorded specific asset write downs in 2022 as referred to in the table below. PMI’s Russian operations as of December 31, 2023 had approximately $2.7 billion in total assets, excluding intercompany balances. These total assets included $773 million, $494 million, $948 million, $261 million and $167 million in cash (primarily held in local currency), receivables, inventories, property, plant and equipment and goodwill, respectively. In addition, there was approximately $1,182 million of cumulative foreign currency translation losses reflected in accumulated other comprehensive losses in the consolidated statement of stockholders’ equity as of December 31, 2023. For the years ended December 31, 2023 and 2022, PMI recorded in its consolidated statements of earnings pre-tax charges related to circumstances driven by the war as follows: (in millions) 2023 2022 Cost of sales Marketing, administration and research costs Total Cost of sales Marketing, administration and research costs Total Ukraine 1 $ 15 $ 38 $ 53 $ 42 $ 36 $ 78 Russia 2 — — — 20 53 73 Total $ 15 $ 38 $ 53 $ 62 $ 89 $ 151 1 The 2023 pre-tax charges were primarily due to the cost of PMI’s humanitarian efforts, which includes salary continuation for its employees, severance payments, as well as an impairment of certain long-lived assets in the fourth quarter of 2023. The 2022 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 2022 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net: | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net: | Goodwill and Other Intangible Assets, net: 2023 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 in the consolidated statements of earnings for the year ended December 31, 2023, 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. The goodwill impairment charge is not deductible for income tax purposes. 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. This pre-tax impairment charge of $15 million was recorded within marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2023. 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 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 4. War in Ukraine . PMI 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 was preliminary at that time of the annual review, PMI 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 January 1, 2022 $ 1,455 $ 3,143 $ 540 $ 611 $ — $ 931 $ 6,680 Changes due to: Acquisitions — — — — 13,301 — 13,301 Currency (85) (274) (47) 4 (5) (109) (516) Other — — — — — 190 190 Balances, December 31, 2022 1,370 2,869 493 615 13,296 1,012 19,655 Changes due to: Impairment — — — — — (665) (665) Currency 69 8 (1) 89 151 43 359 Measurement period adjustments — — — — (2,570) — (2,570) Balances, December 31, 2023 $ 1,439 $ 2,877 $ 492 $ 704 $ 10,877 $ 390 $ 16,779 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 January 1, 2022 and December 31, 2022 goodwill balances in the table above included the reclassifications from the former six geographical segments to the four geographical segments under the new structure. The increase in goodwill in 2022 was due primarily to the final purchase price allocation associated with Vectura Group plc acquisition in 2021 (reflected in "changes due to other" in Wellness and Healthcare segment) and the preliminary purchase price allocation associated with the Swedish Match AB acquisition in the fourth quarter of 2022, partially offset by currency movements. For further details on these business combinations, see Note 3. Acquisitions . The decrease in goodwill in 2023 was primarily due to the measurement period adjustments to the Swedish Match final purchase price allocation (see Note 3, Acquisitions ), coupled with the impairment discussed above and partially offset by currency movements. At December 31, 2023, goodwill primarily reflects PMI’s acquisitions of Swedish Match AB, Fertin Pharma A/S and Vectura Group plc., as well as acquisitions in Greece, Indonesia, Mexico, the Philippines and Serbia. Other Intangible Assets Details of other intangible assets were as follows: December 31, 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 $ 4,543 $ 4,543 $ 3,346 $ 3,346 Amortizable intangible assets: Trademarks 16 years 2,267 $ 784 1,483 2,050 $ 674 1,376 Developed technology, including patents 7 years 774 329 445 975 243 732 Customer relationships and other 12 years 3,843 450 3,393 1,390 112 1,278 Total other intangible assets $ 11,427 $ 1,563 $ 9,864 $ 7,761 $ 1,029 $ 6,732 Non-amortizable intangible assets substantially consist of the ZYN trademark and other trademarks related to acquisitions in Indonesia and Mexico. The increase since December 31, 2022 was due to the measurement period adjustments to the Swedish Match final purchase price allocation in the amount of $1,056 million (see Note 3, Acquisitions ), coupled with currency movements of $156 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 increase in the gross carrying amount of amortizable intangible assets from December 31, 2022, was mainly due to the measurement period adjustments to the Swedish Match final purchase price allocation in the amount of $2,300 million (see Note 3, Acquisitions ), coupled with currency movements of $161 million. The change in the accumulated amortization from December 31, 2022, was mainly due to the 2023 amortization of $497 million, coupled with currency movements of $37 million. The amortization of intangibles for the years ended December 31, 2023 was recorded in cost of sales of $58 million and in marketing, administration and research costs of $439 million on PMI's consolidated statements of earnings. Amortization expense on a pre-tax basis for each of the next five years is estimated to be approximately $470 million or less, assuming no additional transactions occur that require the amortization of intangible assets. Additionally, the estimated future amortization expense could significantly increase following the reacquisition of IQOS commercialization rights in the U.S. from Altria Group, Inc. (see Note 3, Acquisitions ), the accounting for which will depend on the facts and circumstances effective May 1, 2024, when PMI will hold the full rights. 2022 Impairment of Other Intangibles |
Related Parties - Equity Invest
Related Parties - Equity Investments and Other: | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parties - Equity Investments and Other: | Related Parties - Equity Investments and Other: Equity Method Investments: At December 31, 2023 and 2022, PMI had total equity method investments of $1,309 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 December 31, 2023 and 2022, exceeded our share of the investees' book value by $907 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 December 31, 2023 and 2022 of $31 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 consolidated statements of earnings. At December 31, 2023 and 2022, PMI received year-to-date dividends from equity method investees of $57 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 December 31, 2023 had a carrying value of $385 million. While as of December 31, 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 4. War in Ukraine . Additionally, there was approximately $561 million of cumulative foreign currency translation losses associated with Megapolis Distribution BV reflected in accumulated other comprehensive losses in the consolidated statement of stockholders’ equity as of December 31, 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: On March 22, 2019, PMI’s wholly owned subsidiary in Canada, Rothmans, Benson & Hedges Inc. (“RBH”) obtained an initial order from the Ontario Superior Court of Justice granting it protection under the Companies’ Creditors Arrangement Act ("CCAA"), which is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course with minimal disruption to its customers, suppliers and employees. The administration of the CCAA process, principally relating to the powers provided to the court under the CCAA and the oversight provided by the court appointed monitor, removes certain elements of control of the business from both PMI and RBH. As a result, PMI determined that it no longer had a controlling financial interest over RBH as defined in ASC 810 (Consolidation), and deconsolidated RBH as of the date of the CCAA filing. For further details, see Note 18, Contingencies . Since the deconsolidation of RBH on March 22, 2019, PMI has accounted for its continuing investment in RBH in accordance with ASC 321 (Investments-Equity Securities) as an equity security, without readily determinable fair value, and recorded its continuing investment in RBH at fair value of $3,280 million at the date of deconsolidation, within equity investments. Developments in the CCAA process, including resolution through a plan of arrangement or compromise of some or all tobacco-related litigation pending in Canada may have a material adverse impact on the fair value of PMI’s continuing investment in RBH and may result in impairment charges. 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 $375 million and $326 million for the years ended December 31, 2023 and 2022, respectively. Unrealized pre-tax gains (losses) of $49 million and $43 million ($38 million and $33 million net of tax) on these equity securities were recorded in equity investments and securities (income)/loss, net on the consolidated statements of earnings for the years ended December 31, 2023 and 2022, respectively. For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . Other related parties: United Arab Emirates-based Trans-Emirates Trading and Investments (FZC) ("TTI") holds a 33% non-controlling interest in Philip Morris Misr LLC ("PMM"), an entity incorporated in Egypt which is consolidated in PMI’s financial statements in the 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 Years Ended December 31, (in millions) 2023 2022 2021 Net revenues: Megapolis Group $ 2,267 $ 2,485 $ 2,207 Other 1,286 1,173 1,123 Net revenues (a) $ 3,553 $ 3,658 $ 3,330 Expenses: Other $ 186 $ 119 $ 69 Expenses $ 186 $ 119 $ 69 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: At December 31, (in millions) 2023 2022 Receivables: Megapolis Group $ 474 $ 478 Other 236 210 Receivables $ 710 $ 688 Payables: Other $ 18 $ 31 Payables $ 18 $ 31 |
Product Warranty_
Product Warranty: | 12 Months Ended |
Dec. 31, 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 December 31, 2023 and December 31, 2022, these amounts were as follows: At December 31, (in millions) 2023 2022 Balance at beginning of period $ 104 $ 113 Changes due to: Warranties issued 60 107 Settlements (83) (114) Currency/Other (1) (2) Balance at end of period $ 80 $ 104 |
Indebtedness_
Indebtedness: | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Indebtedness: | Indebtedness: Short-Term Borrowings At December 31, 2023 and 2022, PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2023 December 31, 2022 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ 1,685 5.6 % $ 912 4.4 % Bank loans 283 8.9 295 7.5 U.S. dollar credit facility borrowings related to Swedish Match AB acquisition — — 4,430 4.9 $ 1,968 $ 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 at December 31, 2023 and 2022, based on current market interest rates, approximate carrying value. Long-Term Debt At December 31, 2023 and 2022, PMI’s long-term debt consisted of the following: December 31, (in millions) 2023 2022 U.S. dollar notes, 0.875% to 6.375% (average interest rate 4.446%), due through 2044 $ 30,272 $ 22,596 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.877%), due through 2039 8,526 8,116 Swiss franc note, 1.625%, due 2024 299 378 Euro credit facility borrowings related to Swedish Match AB acquisition, (average interest rate 4.453%), due through 2027 6,121 5,850 Swedish krona notes, 1.395% to 2.710% (average interest rate 2.016%), due through 2029 236 343 Other (average interest rate 6.027%), due through 2031 (a) 487 203 Carrying value of long-term debt 45,941 37,486 Less current portion of long-term debt 4,698 2,611 $ 41,243 $ 34,875 (a) Includes long-term bank loans at subsidiaries, as well as $53 million and $54 million in finance leases at December 31, 2023 and 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 December 31, 2023 and 2022 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: December 31, (in millions) 2023 2022 Level 1 $ 38,259 $ 28,919 Level 2 6,687 6,142 For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . 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. 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. 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. As of December 31, 2023 and 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 3. Acquisitions . Notes Outstanding: PMI’s notes outstanding at December 31, 2023, were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $900 2.875% May 2019 May 2024 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $1,000 5.125% November 2022 November 2024 U.S. dollar notes $750 1.500% May 2020 May 2025 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 5.000% November 2022 November 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $1,250 4.875% February 2023 February 2026 U.S. dollar notes (a) $450 4.875% May 2023 February 2026 U.S. dollar notes $750 0.875% November 2020 May 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $1,500 5.125% November 2022 November 2027 U.S. dollar notes $1,000 4.875% February 2023 February 2028 U.S. dollar notes (b) $550 4.875% May 2023 February 2028 U.S. dollar notes $500 3.125% November 2017 March 2028 U.S. dollar notes (c) $50 4.000% May 2013 May 2028 U.S. dollar notes $650 5.250% September 2023 September 2028 U.S. dollar notes $750 3.375% May 2019 August 2029 U.S. dollar notes $1,250 5.625% November 2022 November 2029 U.S. dollar notes $1,500 5.125% February 2023 February 2030 U.S. dollar notes (d) $700 5.125% May 2023 February 2030 U.S. dollar notes $750 2.100% May 2020 May 2030 U.S. dollar notes $700 5.500% September 2023 September 2030 U.S. dollar notes $750 1.750% November 2020 November 2030 U.S. dollar notes $1,500 5.750% November 2022 November 2032 U.S. dollar notes $1,500 5.375% February 2023 February 2033 U.S. dollar notes (e) $750 5.375% May 2023 February 2033 U.S. dollar notes $1,000 5.625% September 2023 September 2033 U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (f) $500 4.250% May 2016 November 2044 EURO notes (g) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (c) €300 (approximately $308) 0.875% September 2016 September 2024 EURO notes (g) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (g) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (c) €200 (approximately $205) 1.200% November 2017 November 2025 EURO notes (c) €50 (approximately $51) 1.200% December 2020 November 2025 EURO notes (c) €50 (approximately $51) 1.200% June 2021 November 2025 (in millions) Type Face Value Interest Issuance Maturity EURO notes (g) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (g) €500 (approximately $557) 0.125% August 2019 August 2026 EURO notes (c) €300 (approximately $308) 0.875% February 2020 February 2027 EURO notes (g) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (g) €750 (approximately $835) 0.800% August 2019 August 2031 EURO notes (g) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (g) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (g) €500 (approximately $582) 1.875% November 2017 November 2037 EURO notes (g) €750 (approximately $835) 1.450% August 2019 August 2039 Swiss franc notes (g) CHF250 (approximately $283) 1.625% May 2014 May 2024 Swedish krona notes (c) SEK1,000 (approximately $95) 2.710% January 2019 January 2026 Swedish krona notes (c) SEK700 (approximately $67) 1.395% February 2021 February 2026 Swedish krona notes (c) SEK100 (approximately $10) 1.395% March 2021 February 2026 Swedish krona notes (c) SEK200 (approximately $19) 1.395% September 2021 February 2026 Swedish krona notes (c) SEK200 (approximately $19) 1.395% January 2022 February 2026 Swedish krona notes (c) SEK300 (approximately $29) 2.190% April 2021 April 2029 (a) These notes are a further issuance of the 4.875% notes issued in February 2023. (b) These notes are a further issuance of the 4.875% notes issued in February 2023. (c) Notes issued by Swedish Match AB. USD equivalents for foreign currency notes were calculated based on exchange rates on the date of acquisition. (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. (f) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (g) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. The net proceeds from the sale of the securities listed in the table above were primarily used for general corporate purposes, including working capital requirements and repurchase of PMI's common stock. On February 17, 2023, PMI applied a portion of the net proceeds of the February 2023 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 3. Acquisitions . The remaining net proceeds of the February and May 2023 offerings, as well as the September 2023 offering have been used for general corporate purposes. Aggregate maturities: Aggregate maturities of long-term debt are as follows: (in millions) 2024 $ 4,709 2025 6,785 2026 5,117 2027 5,141 2028 2,771 2029-2033 13,312 2034-2038 2,613 Thereafter 5,885 46,333 Debt discounts and fair value adjustments (392) Total long-term debt $ 45,941 Revolving Credit Facilities At December 31, 2023, PMI’s total committed revolving credit facilities were as follows: Type Committed Revolving Credit Facilities 364-day revolving credit, expiring January 30, 2024 (1) $ 1.8 Multi-year revolving credit, expiring February 10, 2026 (2) 2.0 Multi-year revolving credit, expiring September 29, 2026 (3) (4) 2.5 Total facilities $ 6.3 (1) On January 24, 2024, PMI entered into an agreement to extend the term of its 364-day committed revolving credit facility in the amount of $1.7 billion from January 30, 2024, to January 28, 2025. (2) 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. (3) 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. (4) 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. On September 20, 2023, PMI entered into an agreement, effective September 29, 2023, to amend and further extend the term to September 29, 2028. At December 31, 2023, there were no borrowings under these committed revolving credit facilities, and the entire committed amounts were available for borrowing. In addition to the committed revolving credit facilities discussed above, PMI maintains certain short-term credit arrangements, including uncommitted credit lines, to primarily meet working capital needs. These credit arrangements amounted to approximately $2.7 billion at December 31, 2023, and approximately $1.9 billion at December 31, 2022. Borrowings under these arrangements and other bank loans amounted to $283 million at December 31, 2023, and $295 million at December 31, 2022. |
Capital Stock_
Capital Stock: | 12 Months Ended |
Dec. 31, 2023 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock: | Capital Stock: Shares of authorized common stock are 6.0 billion; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2021 2,109,316,331 (551,942,600) 1,557,373,731 Repurchase of shares (8,514,629) (8,514,629) Issuance of stock awards 1,310,891 1,310,891 Balances, December 31, 2021 2,109,316,331 (559,146,338) 1,550,169,993 Repurchase of shares (1,966,730) (1,966,730) Issuance of stock awards 2,014,448 2,014,448 Balances, December 31, 2022 2,109,316,331 (559,098,620) 1,550,217,711 Repurchase of shares — — Issuance of stock awards 2,206,820 2,206,820 Balances, December 31, 2023 2,109,316,331 (556,891,800) 1,552,424,531 On June 11, 2021, PMI's Board of Directors authorized a new share repurchase program of up to $7 billion, with target spending of $5 billion to $7 billion over a three-year period. On July 22, 2021, PMI began repurchasing shares under this new share repurchase program. From July 22, 2021 through March 31, 2022, PMI repurchased 10.5 million shares of its common stock at a cost of approximately $1.0 billion. During the first three months of 2022, PMI repurchased 2.0 million shares of its common stock at a cost of $199 million. On May 11, 2022, PMI announced the suspension of its three-year share repurchase program following the recommended public offer to acquire the outstanding shares of Swedish Match from its shareholders. For further details, see Note 3. Acquisitions . Prior to the suspension of the program, PMI made no share repurchases during the second quarter of 2022. At December 31, 2023, 30,505,637 shares of common stock were reserved for stock awards under PMI’s stock plans, and 250 million shares of preferred stock, without par value, were authorized but unissued. PMI currently has no plans to issue any shares of preferred stock. |
Stock Plans_
Stock Plans: | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [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 December 31, 2023, shares available for grant under the 2022 Plan were 22,171,530. 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 December 31, 2023, shares available for grant under the plan were 876,226. Restricted share unit (RSU) awards PMI may grant RSU awards to eligible employees; recipients may not sell, assign, pledge or otherwise encumber such awards. Such awards are subject to forfeiture if certain employment conditions are not met. RSU awards generally vest on the third anniversary of the grant date. RSU awards do not carry voting rights, although they do earn dividend equivalents. During 2023, the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2023 4,519,470 $ 91.26 Granted 1,756,750 101.96 Vested (1,483,356) 87.30 Forfeited (189,543) 96.96 Balance at December 31, 2023 4,603,321 $ 96.38 During the years ended December 31, 2023, 2022 and 2021, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2023 $ 179 $ 101.96 $ 153 2022 $ 174 $ 104.75 $ 135 2021 $ 166 $ 82.17 $ 139 The fair value of the RSU awards at the date of grant is amortized to expense over the restriction period, typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2023, PMI had $160 million of total unrecognized compensation costs related to non-vested RSU awards. These costs are expected to be recognized over a weighted-average period of approximately seventeen months, or upon death, disability or reaching the age of 58. During the years ended December 31, 2023, 2022 and 2021, share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2023 1,483,356 $ 129 $ 148 2022 1,603,571 $ 126 $ 174 2021 1,256,441 $ 121 $ 111 Performance share unit (PSU) awards PMI may grant PSU awards to certain executives; recipients may not sell, assign, pledge or otherwise encumber such awards. The PSU awards require the achievement of certain performance 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 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: • Pro duct Sustainability (20% weight) measuring progress primarily on PMI's efforts to maximize the benefits of smoke-free products, purposefully phase out cigarettes, 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 performance metrics for such PSU's granted in 2021 consisted of PMI's TSR relative to a predetermined peer group and on an absolute basis (40% weight), PMI’s currency-neutral compound annual adjusted diluted earnings per share growth rate (30% weight), and PMI’s performance against specific measures of PMI’s transformation, defined as net revenues from PMI's RRPs and any other non-combustible products as a percentage of PMI's total net revenues in the last year of the performance cycle (30% weight). The aggregate of the weighted performance factors for the three metrics in each such PSU award determines the percentage of PSUs that will vest at the end of the three-year performance cycle. The minimum percentage of such PSUs that can vest is zero, with a target percentage of 100 and a maximum percentage of 200. Each such vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned. PSU awards do not carry voting rights. During 2023, the activity for PSU awards was as follows: Number of Weighted- Weighted- (Per Share) (Per Share) Balance at January 1, 2023 1,507,190 $ 90.31 $ 115.45 Granted 482,360 102.02 133.54 Vested (902,232) 85.99 98.45 Adjustments for performance achievement 400,992 85.99 98.45 Forfeited (61,030) 98.24 131.39 Balance at December 31, 2023 1,427,280 $ 95.45 $ 126.86 During the years ended December 31, 2023, 2022 and 2021, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) Weighted- Weighted- Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2023 $ 29 $ 102.02 $ 26 $ 133.54 $ 59 2022 $ 30 $ 104.92 $ 27 $ 143.89 $ 48 2021 $ 28 $ 81.86 $ 25 $ 106.93 $ 71 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 for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, 2023 2022 2021 Average risk-free interest rate (a) 4.1 % 1.7 % 0.2 % Average expected volatility (b) 24.3 % 28.3 % 31.7 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. The fair value of the PSU award at the date of grant is amortized to expense over the performance period, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2023, PMI had $39 million of total unrecognized compensation cost related to non-vested PSU awards. This cost is recognized over a weighted-average performance cycle period of approximately seventeen months, or upon death, disability or reaching the age of 58. During the years ended December 31, 2023, 2022 and 2021, share and fair value information for PMI PSU awards that vested were as follows: (dollars in millions) Shares of PSU Awards that Vested Grant Date Fair Value of Vested Shares of PSU Awards Total Fair Value of PSU Awards that Vested 2023 902,232 $ 83 $ 91 2022 669,960 $ 54 $ 74 2021 189,839 $ 21 $ 16 |
Earnings per Share_
Earnings per Share: | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share: | Earnings per Share: Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method. Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2023 2022 2021 Net earnings attributable to PMI $ 7,813 $ 9,048 $ 9,109 Less distributed and undistributed earnings attributable to share-based payment awards 22 24 26 Net earnings for basic and diluted EPS $ 7,791 $ 9,024 $ 9,083 Weighted-average shares for basic EPS 1,552 1,550 1,558 Plus contingently issuable performance stock units (PSUs) (1) 1 2 1 Weighted-average shares for diluted EPS 1,553 1,552 1,559 (1) Including rounding adjustment |
Income Taxes_
Income Taxes: | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes: | Income Taxes: Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2023, 2022 and 2021: (in millions) 2023 2022 2021 Earnings before income taxes $ 10,450 $ 11,634 $ 12,232 Provision for income taxes: United States federal and state: Current $ 201 $ (75) $ 73 Deferred (368) (139) 27 Total United States (167) (214) 100 Outside United States: Current 2,468 2,553 2,616 Deferred 38 (95) (45) Total outside United States 2,506 2,458 2,571 Total provision for income taxes $ 2,339 $ 2,244 $ 2,671 On August 16, 2022, the Inflation Reduction Act ("the Act") was signed into law in the U.S. The Act includes a new corporate alternative minimum tax and an excise tax on stock buybacks effective after December 31, 2022. As of December 31, 2023, PMI has determined that the Act had no tax impacts on its consolidated financial statements. On March 11, 2021, the American Rescue Plan Act of 2021 ("the ARP Act") was signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. PMI has determined that the ARP Act had no significant impact on PMI's effective tax rate. At December 31, 2017, PMI recorded a one-time transition tax liability on its accumulated foreign earnings, which is payable over an eight-year period beginning in 2018. At December 31, 2023 and December 31, 2022, $0.3 billion and $0.7 billion of PMI's remaining long-term portion of transition tax liability, respectively, was recorded in "income taxes and other liabilities" on PMI's consolidated balance sheets. At December 31, 2023, applicable U.S. federal income taxes have not been provided on approximately $0.6 billion of accumulated earnings of Swedish Match subsidiaries that are expected to be permanently reinvested. PMI does not foresee a need to repatriate these earnings since its U.S. cash requirements are supported by distributions of earnings from PMI foreign entities that have not been designated as permanently reinvested and existing credit facilities. At December 31, 2023, PMI has determined the amount of deferred tax liabilities related to these unremitted Swedish Match earnings is approximately $71 million. At December 31, 2023 and 2022, U.S. federal and foreign deferred income taxes have been provided on all accumulated earnings of PMI's foreign subsidiaries. PMI is regularly examined by tax authorities around the world and is currently under examination in a number of jurisdictions. The U.S. federal statute of limitations on assessment 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 after the filing of a return. Years still open to examination by foreign tax authorities in major jurisdictions include Germany (2018 onward), Indonesia (2019 onward), Italy (2017 onward), Russia (2020 onward) and Switzerland (2019 onward). At December 31, 2023, subsidiaries of PMI in Indonesia, principally PT Hanjaya Mandala Sampoerna Tbk ("HMS"), have recorded income tax receivables in the amount of 4.0 trillion Indonesian rupiah (approximately $255 million) relating to corporate income tax assessments paid to avoid potential penalties, primarily for domestic and other intercompany transactions for the years 2014 to 2020. Objection letters have been filed with the Tax Office and these assessments are being challenged at various levels in court. These income tax receivables are included in other assets in PMI’s consolidated balance sheets at December 31, 2023. It is reasonably possible that within the next 12 months certain tax examinations will close, which could result in a change in unrecognized tax benefits along with related interest and penalties. An estimate of any possible change cannot be made at this time. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2023 2022 2021 Balance at January 1, $ 72 $ 89 $ 72 Additions based on tax positions related to the current year 7 12 12 Additions for tax positions of previous years 1 2 15 Reductions for tax positions of prior years (23) (18) (1) Reductions due to lapse of statute of limitations (3) (6) (3) Settlements — (4) — Other 1 (3) (6) Balance at December 31, $ 55 $ 72 $ 89 Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2023 December 31, 2022 December 31, 2021 Unrecognized tax benefits $ 55 $ 72 $ 89 Accrued interest and penalties 9 13 18 Tax credits and other indirect benefits (1) (3) (7) Liability for tax contingencies $ 63 $ 82 $ 100 The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $55 million at December 31, 2023. The remainder, if recognized, would principally affect deferred taxes. For the years ended December 31, 2023, 2022 and 2021, PMI recognized income (expense) in its consolidated statements of earnings of $5 million, $2 million and $(3) million, respectively, related to interest and penalties associated with uncertain tax positions. The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: Foreign rate differences (1.0) (0.5) (0.3) Dividend repatriation cost 0.8 0.7 0.6 Global intangible low-taxed income 2.0 1.0 0.8 U.S. state taxes (0.1) 0.1 0.2 Foreign derived intangible income (0.9) (0.8) (0.7) Foreign exchange (1.6) (1.7) — Non-deductible goodwill impairment 1.3 — — Unremitted earnings of Russian subsidiaries 1.7 — — Other (0.8) (0.5) 0.2 Effective tax rate 22.4 % 19.3 % 21.8 % The 2023 effective tax rate increased 3.1 percentage points to 22.4%. The change in the effective tax rate for 2023, as compared to 2022, was unfavorably impacted by: (i) an increase in deferred tax liabilities related to the unremitted earnings of PMI's Russian subsidiaries due to the unilateral suspension of certain Russian double tax treaties by the Russian authorities on August 8, 2023, with respect to certain payments including dividends; (ii) the non-deductible Wellness and Healthcare goodwill impairment charge and (iii) an increase in foreign tax credit limitation related to GILTI, partially offset by changes in earnings mix by taxing jurisdiction. The 2022 effective tax rate decreased 2.5 percentage points to 19.3%. The change in the effective tax rate for 2022, as compared to 2021, was favorably impacted by changes in income tax reserves, a deferred tax benefit for unrealized foreign currency losses on intercompany loans related to the Swedish Match acquisition financing reflected in the consolidated statements of earnings ($203 million), while the underlying pre-tax foreign currency movements fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in its consolidated statements of stockholders' (deficit) equity, and by a reduction in deferred tax liabilities related to pension plan assets ($40 million), partially offset by an increase in deferred tax liabilities related to the fair value adjustment of equity securities held by PMI ($10 million). For further details, see Note 6. Related Parties - Equity Investments and Other . The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2023 2022 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 223 $ 217 Accrued pension costs 450 277 Inventory 27 22 Accrued liabilities 191 158 Net operating loss, tax credit, and other carryforwards 501 384 Foreign exchange 149 — Other 19 — Total deferred income tax assets 1,560 1,058 Less: valuation allowance (369) (378) Deferred income tax assets, net of valuation allowance 1,191 680 Deferred income tax liabilities: Intangible assets (2,136) (1,485) Property, plant and equipment (218) (200) Unremitted earnings (358) (141) Foreign exchange — (175) Other — (32) Total deferred income tax liabilities (2,712) (2,033) Net deferred income tax assets (liabilities) $ (1,521) $ (1,353) At December 31, 2023, PMI recorded deferred tax assets for net operating loss, tax credit, and other carryforwards of $501 million, with varying dates of expiration, primarily after 2028, including $274 million with an unlimited carryforward period. At December 31, 2023, PMI has recorded a valuation allowance of $369 million against deferred tax assets that do not meet the more-likely-than not recognition threshold. |
Segment Reporting_
Segment Reporting: | 12 Months Ended |
Dec. 31, 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. The Swedish Match segment represents the fourth quarter 2022 acquisition of the company. The Wellness and Healthcare segment reflects the operating results of Vectura Fertin Pharma. For further details on these acquisitions, see Note 3. Acquisitions . 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. Interest expense, net, and provision for income taxes are centrally managed and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management. Information about total assets by segment is not disclosed because such information is not reported to or used by PMI’s chief operating decision maker. Segment goodwill and other intangible assets, net, are disclosed in Note 5. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies. PMI disaggregates its net 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 discussed above, 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. Net revenues by segment were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Net revenues: Europe $ 13,598 $ 12,869 $ 13,155 SSEA, CIS & MEA 10,629 10,467 9,858 EA, AU & PMI DF 6,201 5,936 6,448 Americas 1,944 1,903 1,843 Swedish Match 2,496 316 — Wellness and Healthcare 306 271 101 Net revenues $ 35,174 $ 31,762 $ 31,405 Total net revenues attributable to customers located in Japan, PMI's largest market in terms of net revenues, were $3.9 billion, $3.9 billion and $4.6 billion in 2023, 2022 and 2021, respectively. PMI had one customer in the EA, AU & PMI DF segment that accounted for 11%, 12% and 15% of PMI’s consolidated net revenues, and one customer in the Europe segment that accounted for 12%, 13% and 13% of PMI’s consolidated net revenues in 2023, 2022 and 2021, respectively. PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Combustible tobacco products: Europe $ 8,037 $ 7,694 $ 8,767 SSEA, CIS & MEA 9,321 9,173 8,734 EA, AU & PMI DF 2,676 2,831 2,861 Americas 1,869 1,804 1,706 Swedish Match 431 70 — Total combustible tobacco products 22,334 21,572 22,067 Smoke-free products: Smoke-free products excluding Wellness and Healthcare: Europe 5,561 5,175 4,388 SSEA, CIS & MEA 1,308 1,294 1,124 EA, AU & PMI DF 3,525 3,105 3,587 Americas 75 99 137 Swedish Match 2,065 246 — Total smoke-free products excluding Wellness and Healthcare 12,534 9,919 9,237 Wellness and Healthcare 306 271 101 Total smoke-free products 12,840 10,190 9,338 Total PMI net revenues $ 35,174 $ 31,762 $ 31,405 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. 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 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. Operating income (loss) by segment were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Operating income (loss): Europe $ 6,012 $ 5,802 $ 6,409 SSEA, CIS & MEA 3,047 3,864 3,295 EA, AU & PMI DF 2,481 2,424 2,836 Americas 62 436 487 Swedish Match 824 (22) — Wellness and Healthcare (870) (258) (52) Operating income $ 11,556 $ 12,246 $ 12,975 Items affecting the comparability of results from operations were as follows: • Impairment of goodwill and other intangibles – For the year ended December 31, 2023, PMI recorded $680 million of goodwill and non-amortizable intangible assets impairment charges that was included in the Wellness and Healthcare segment. For the year ended December 31, 2022, PMI recorded an impairment charge related to definite-lived intangible assets of $112 million. This charge was included in the Wellness and Healthcare segment. For further details, see Note 5. Goodwill and Other Intangible Assets, net . • South Korea indirect tax charge – See Note 18. Contingencies for details of the $204 million pre-tax charge included in the EA, AU & PMI DF segment results for the year ended December 31, 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 consolidated statements of earnings, and was included in the SSEA, CIS & MEA segment results for the year ended December 31, 2023. • Charges related to the war in Ukraine - See Note 4. War in Ukraine for details of the $53 million and $151 million pre-tax charges in the Europe segment for the years ended December 31, 2023 and 2022, respectively. • Swedish Match AB acquisition accounting related item - See Note 3. Acquisitions for details of the $18 million and $125 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 years ended December 31, 2023 and 2022, respectively. • Asset impairment and exit costs - See Note 20. Asset Impairment and Exit Costs for details of the $109 million and $216 million pre-tax charges for the year ended December 31, 2023 and 2021, respectively, as well as a breakdown of these costs by segment. • Termination of agreement with Foundation for a Smoke-Free World – On September 29, 2023, PMI and the Foundation for a Smoke-Free World (the "Foundation") entered into the Final Grant Agreement and Termination of the Second Amended and Restated Pledge Agreement ("Agreement"). Under the terms of the agreement, PMI paid $140 million in the third quarter of 2023 in return for the termination of the pledge agreement between the parties. As a result, in the third quarter of 2023, PMI recorded a pre-tax charge of $140 million commensurate with the early termination of the pledge agreement. The pre-tax charge was recorded in marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2023 and was included in the operating results of the following segments: Europe ($62 million); SSEA, CIS & MEA ($44 million); EA, AU & PMI DF ($27 million); and Americas ($7 million). • Saudi Arabia customs assessments - In June 2021, PMI recorded a pre-tax charge of $246 million in relation to additional customs duties in Saudi Arabia assessed for the periods of 2014 through 2020 in line with existing and contemplated arrangements with our distributors. In accordance with U.S. GAAP, the charge was recorded as a reduction in net revenues of combustible tobacco products included in the SSEA, CIS & MEA segment for the year ended December 31, 2021. • Asset acquisition cost - See Note 3. Acquisitions for the details of the $51 million pre-tax charge associated with the asset acquisition of OtiTopic, Inc. included in the Wellness and Healthcare segment within the operating income table above for the year ended December 31, 2021. Other segment data were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Depreciation and amortization expense: Europe $ 333 $ 377 $ 371 SSEA, CIS & MEA 309 340 354 EA, AU & PMI DF 148 167 168 Americas 77 74 71 Swedish Match 447 34 — Wellness and Healthcare 84 85 34 Total depreciation and amortization expense $ 1,398 $ 1,077 $ 998 For the Years Ended December 31, (in millions) 2023 2022 2021 Capital expenditures: Europe $ 778 $ 642 $ 481 SSEA, CIS & MEA 287 258 149 EA, AU & PMI DF 38 25 36 Americas 57 92 54 Swedish Match 127 15 — Wellness and Healthcare 34 45 28 Total capital expenditures $ 1,321 $ 1,077 $ 748 PMI’s total property, plant and equipment, net and other assets by geographic area were: At December 31, (in millions) 2023 2022 2021 Long-lived assets: Europe $ 5,697 $ 5,179 $ 4,918 SSEA, CIS & MEA 2,197 2,047 2,181 East Asia and Australia 481 675 742 Americas 1,310 1,282 666 Total long-lived assets 9,685 9,183 8,507 Altria Group, Inc. agreement 2,777 1,002 — Financial instruments 701 456 210 Total property, plant and equipment, net and Other assets $ 13,163 $ 10,641 $ 8,717 Long-lived assets consist of non-current assets other than goodwill; other intangible assets, net; deferred tax assets, equity investments, financial instruments and payment under the agreement with Altria Group, Inc., see Note 3, Acquisitions and Note 18, Contingencies |
Benefit Plans_
Benefit Plans: | 12 Months Ended |
Dec. 31, 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 consolidated statements of earnings consisted of the following for December 31, 2023, 2022 and 2021: (in millions) 2023 2022 2021 Net pension costs (income) $ (84) $ (93) $ (1) Net postemployment costs 117 107 108 Net postretirement costs 12 10 8 Total pension and other employee benefit costs $ 45 $ 24 $ 115 Pension and Postretirement Benefit Plans Obligations and Funded Status The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation, plan assets and net amount accrued for PMI's postretirement health care plans, at December 31, 2023 and 2022, were as follows: Pension (1) Postretirement (in millions) 2023 2022 2023 2022 Benefit obligation at January 1 $ 8,606 $ 10,998 $ 229 $ 198 Service cost 174 233 4 2 Interest cost 258 78 12 6 Benefits paid (520) (429) (13) (9) Employee contributions 145 141 — — Settlement, curtailment and plan amendment (17) (17) — — Actuarial losses (gains) 1,209 (2,294) 24 (46) Currency 763 (434) (4) (5) Acquisition of Swedish Match — 316 — 85 Other (51) 14 (6) (2) Benefit obligation at December 31, 10,567 8,606 246 229 Fair value of plan assets at January 1, 7,939 9,337 3 — Actual return on plan assets 643 (1,061) — — Employer contributions, net of refunds 21 (3) 13 9 Employee contributions 145 141 — — Benefits paid (520) (429) (13) (9) Settlement (17) (14) — — Currency 639 (333) — — Acquisition of Swedish Match — 303 — 3 Other 1 (2) — — Fair value of plan assets at December 31, 8,851 7,939 3 3 Net pension and postretirement liability recognized at December 31, $ (1,716) $ (667) $ (243) $ (226) (1) Primarily non-U.S. based defined benefit retirement plans. At December 31, 2023 , actuarial losses (gains) consisted primarily of losses for assumption changes related to lower discount rates year-over-year for Swiss, German and Dutch plans. At December 31, 2022 actuarial losses (gains) consisted primarily of gains for assumption changes related to higher discount rates year-over-year for Swiss, German and Dutch plans. At December 31, 2023 and 2022, the Swiss pension plan represented 67% and 64% of the benefit obligation, respectively, and approximately 62% and 60% of the fair value of plan assets at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the U.S. pension plans represented 6% and 7% of the benefit obligation, respectively, and approximately 6% and 6% of the fair value of plan assets at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2023 2022 2023 2022 Other assets $ 294 $ 410 Accrued liabilities — employment costs (31) (32) $ (12) $ (11) Long-term employment costs (1,979) (1,045) (231) (215) $ (1,716) $ (667) $ (243) $ (226) The accumulated benefit obligation, which represents benefits earned to date, for the pension plans was $10.0 billion and $8.2 billion at December 31, 2023 and 2022, respectively. For pension plans with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $8.8 billion and $7.2 billion, respectively, as of December 31, 2023. The accumulated benefit obligation and fair value of plan assets were $5.8 billion and $5.0 billion, respectively, as of December 31, 2022. For pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation and fair value of plan assets were $9.2 billion and $7.2 billion, respectively, as of December 31, 2023. The projected benefit obligation and fair value of plan assets were $6.4 billion and $5.4 billion, respectively, as of December 31, 2022. The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2023 2022 2023 2022 Discount rate 2.28 % 3.03 % 5.19 % 5.89 % Rate of compensation increase 2.05 1.98 Interest crediting rate 2.99 2.97 Health care cost trend rate assumed for next year 6.54 6.14 Ultimate trend rate 4.49 4.78 Year that rate reaches the ultimate trend rate 2047 2046 The discount rate for the largest pension plans is based on a yield curve constructed from a portfolio of high quality corporate bonds that produces a cash flow pattern equivalent to each plan’s expected benefit payments. The discount rate for the remaining plans is developed from local bond indices that match local benefit obligations as closely as possible. Components of Net Periodic Benefit Cost Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2023, 2022 and 2021: Pension Postretirement (in millions) 2023 2022 2021 2023 2022 2021 Service cost $ 174 $ 233 $ 291 $ 4 $ 2 $ 2 Interest cost 258 78 50 12 6 5 Expected return on plan assets (365) (352) (371) — — — Amortization: Net losses 18 181 314 (1) 2 3 Prior service cost (credit) (2) (2) 1 — — — Net transition obligation — — — — — — Settlement and curtailment 7 2 5 1 2 — Net periodic pension and postretirement costs $ 90 $ 140 $ 290 $ 16 $ 12 $ 10 Settlement and curtailment charges were due primarily to employee severance and early retirement programs. The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2023 2022 2021 2023 2022 2021 Discount rate - service cost 3.27 % 1.03 % 0.72 % 5.89 % 3.08 % 2.84 % Discount rate - interest cost 3.03 0.71 0.44 5.89 3.08 2.84 Expected rate of return on plan assets 4.42 4.17 4.43 Rate of compensation increase 1.98 1.77 1.79 Interest crediting rate 2.97 3.15 3.20 Health care cost trend rate 6.14 6.27 6.21 PMI’s expected rate of return on pension plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. PMI and certain of its subsidiaries sponsor defined contribution plans. Amounts charged to expense for defined contribution plans totaled $111 million, $82 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively. Plan Assets PMI’s investment strategy for pension plans is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, the target allocation of PMI’s plan assets is broadly characterized as approximately 55% in equity securities and approximately 45% in debt securities and other assets. The strategy primarily utilizes indexed U.S. equity securities, international equity securities and investment-grade debt securities. PMI attempts to mitigate investment risk by rebalancing between equity and debt asset classes once a year or as PMI’s contributions and benefit payments are made. The fair value of PMI’s pension plan assets at December 31, 2023 and 2022, by asset category was as follows: Asset Category At December 31, 2023 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 117 $ 117 Equity securities: U.S. securities 158 158 International securities 569 569 Investment funds (a) 7,123 5,366 $ 1,757 Government bonds 255 183 72 Corporate bonds 320 320 Other 37 — 5 32 (c) Total assets in the fair value hierarchy $ 8,579 $ 6,713 $ 1,834 $ 32 Investment funds measured at net asset value (b) 272 Total assets $ 8,851 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan, Emerging Markets for equities, and FTSE EMU, FTSE Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% are invested in U.S. and international equities; 15% are invested in U.S. and international government bonds; 15% are invested in corporate bonds and 13% are invested in real estate. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (c) Amount relates to annuity policies of which the fair value is calculated using an actuarial model. Asset Category At December 31, 2022 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 79 $ 79 Equity securities: U.S. securities 140 140 International securities 521 521 Investment funds (a) 6,419 4,870 $ 1,549 Government bonds 178 117 61 Corporate bonds 302 302 Other 35 — 3 32 (c) Total assets in the fair value hierarchy $ 7,674 $ 6,029 $ 1,613 $ 32 Investment funds measured at net asset value (b) 265 Total assets $ 7,939 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000, S&P 500 for equities and Citigroup EMU, Citigroup Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% were invested in U.S. and international equities; 15% were invested in U.S. and international government bonds; 16% were invested in corporate bonds, and 12% were invested in real estate. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (c) Amount relates to annuity policies of which the fair value is calculated using an actuarial model. For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2 . Summary of Significant Accounting Policies . PMI makes, and plans to make, contributions, to the extent that they are tax deductible and meet specific funding requirements of its funded pension plans. Currently, PMI anticipates making contributions of approximately $119 million in 2024 to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest and currency rates. The estimated future benefit payments from PMI pension plans at December 31, 2023, are as follows: (in millions) 2024 $ 417 2025 430 2026 428 2027 438 2028 457 2029 - 2033 2,490 PMI's expected future annual benefit payments for its postretirement health care plans are estimated to be not material through 2032. Postemployment Benefit Plans PMI and certain of its subsidiaries sponsor postemployment benefit plans covering certain designated salaried and hourly employees. The cost of these plans is charged to expense over the working life of the covered employees. Net postemployment costs were $213 million, $184 million and $228 million for the years ended December 31, 2023, 2022 and 2021, respectively. The amounts recognized in accrued postemployment costs net of plan assets on PMI's consolidated balance sheets at December 31, 2023 and 2022, were $915 million and $807 million, respectively. The accrued postemployment costs were determined using a weighted-average discount rate of 4.3% and 5.6% in 2023 and 2022, respectively; an assumed ultimate annual weighted-average turnover rate of 2.8% and 2.9% in 2023 and 2022, respectively; assumed compensation cost increases of 2.4% in 2023 and 2.8% in 2022, and assumed benefits as defined in the respective plans. In accordance with local regulations, certain postemployment plans are funded. As a result, the accrued postemployment costs disclosed above are presented net of the related assets of $33 million and $30 million at December 31, 2023 and 2022, respectively. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Comprehensive Earnings (Losses) The amounts recorded in accumulated other comprehensive losses at December 31, 2023, consisted of the following: (in millions) Pension Post- Post- Total Net (losses) gains $ (2,325) $ (36) $ (770) $ (3,131) Prior service (cost) credit 77 1 (21) 57 Net transition (obligation) asset (3) — — (3) Deferred income taxes 283 19 186 488 Losses to be amortized $ (1,968) $ (16) $ (605) $ (2,589) The amounts recorded in accumulated other comprehensive losses at December 31, 2022, consisted of the following: (in millions) Pension Post- Post- Total Net (losses) gains $ (1,437) $ (14) $ (753) $ (2,204) Prior service (cost) credit 70 1 (21) 50 Net transition (obligation) asset (3) — — (3) Deferred income taxes 138 14 183 335 Losses to be amortized $ (1,232) $ 1 $ (591) $ (1,822) The amounts recorded in accumulated other comprehensive losses at December 31, 2021, consisted of the following: (in millions) Pension Post- Post- Total Net (losses) gains $ (2,495) $ (64) $ (884) $ (3,443) Prior service (cost) credit 71 1 (22) 50 Net transition (obligation) asset (3) — — (3) Deferred income taxes 278 24 214 516 Losses to be amortized $ (2,149) $ (39) $ (692) $ (2,880) The movements in other comprehensive earnings (losses) during the year ended December 31, 2023, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses (gains) $ 19 $ 1 $ 76 $ 96 Prior service cost (credit) 7 — — 7 Net transition obligation (asset) — — — — Other income/expense: Net losses (gains) 11 1 — 12 Prior service cost (credit) — — — — Deferred income taxes (9) (1) (18) (28) 28 1 58 87 Other movements during the year: Net (losses) gains (918) (24) (93) (1,035) Prior service (cost) credit — — — — Deferred income taxes 154 6 21 181 (764) (18) (72) (854) Total movements in other comprehensive earnings (losses) $ (736) $ (17) $ (14) $ (767) The movements in other comprehensive earnings (losses) during the year ended December 31, 2022, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses (gains) $ 178 $ 3 $ 85 $ 266 Prior service cost (credit) (4) — — (4) Other income/expense: Net losses (gains) 2 1 — 3 Prior service cost (credit) — — 1 1 Deferred income taxes (28) (1) (20) (49) 148 3 66 217 Other movements during the year: Net (losses) gains 878 46 46 970 Prior service (cost) credit 3 — — 3 Deferred income taxes (112) (9) (11) (132) 769 37 35 841 Total movements in other comprehensive earnings (losses) $ 917 $ 40 $ 101 $ 1,058 The movements in other comprehensive earnings (losses) during the year ended December 31, 2021, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses (gains) $ 294 $ 4 $ 85 $ 383 Prior service cost (credit) 7 (1) — 6 Other income/expense: Net losses (gains) 5 1 — 6 Prior service cost (credit) — — — — Deferred income taxes (51) (1) (20) (72) 255 3 65 323 Other movements during the year: Net (losses) gains 1,353 (5) (130) 1,218 Prior service (cost) credit 42 — — 42 Deferred income taxes (241) 1 30 (210) 1,154 (4) (100) 1,050 Total movements in other comprehensive earnings (losses) $ 1,409 $ (1) $ (35) $ 1,373 |
Additional Information_
Additional Information: | 12 Months Ended |
Dec. 31, 2023 | |
Additional Information [Abstract] | |
Additional Information: | Additional Information: For the Years Ended December 31, (in millions) 2023 2022 2021 Depreciation expense $ 901 $ 918 $ 902 Research and development expense $ 709 $ 642 $ 617 Advertising expense $ 965 $ 777 $ 807 Foreign currency net transaction (gains)/losses $ 305 $ 199 $ 45 Interest expense $ 1,526 $ 768 $ 737 Interest income (465) (180) (109) Interest expense, net $ 1,061 $ 588 $ 628 |
Financial Instruments_
Financial Instruments: | 12 Months Ended |
Dec. 31, 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 as of December 31, 2023 and 2022, were as follows: (in millions) 2023 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts $ 21,987 $ 17,627 Interest rate contracts 3,600 1,019 Commodity contracts 20 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts 17,658 21,755 Total $ 43,265 $ 40,401 The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2023 and 2022, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2023 2022 Balance Sheet Classification 2023 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts Other current assets $ 345 $ 376 Other accrued liabilities $ 249 $ 126 Other assets 153 341 Income taxes and other liabilities 449 147 Interest rate contracts Other current assets 1 — Other accrued liabilities 78 27 Other assets — — Income taxes and other liabilities 18 56 Commodity contracts Other current assets — — Other accrued liabilities 5 — Other assets — — Income taxes and other liabilities 1 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts Other current assets 85 156 Other accrued liabilities 425 165 Other assets — — Income taxes and other liabilities 143 16 Total gross amount derivatives contracts presented in the consolidated balance sheets $ 584 $ 873 $ 1,368 $ 537 Gross amounts not offset in the consolidated balance sheets Financial instruments (374) (346) (374) (346) Cash collateral received/pledged (109) (341) (551) (48) Net amount $ 101 $ 186 $ 443 $ 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 December 31, 2023 and 2022. For the years ended December 31, 2023, 2022 and 2021, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Years Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2023 2022 2021 2023 2022 2021 2023 2022 2021 Derivative contracts designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 195 $ 288 $ 138 Net revenues $ 194 $ 233 $ 59 Cost of sales — — — Marketing, administration and research costs 27 30 (10) Interest expense, net (15) (7) (6) Interest rate contracts 37 292 6 Interest expense, net 46 (2) (1) Commodity contracts (7) — — Cost of sales — — — Fair value hedges: Interest rate contracts Interest expense, net (a) $ (14) $ (83) $ 1 Net investment hedges (b): Foreign exchange contracts (788) 300 484 Interest expense, net (c) 268 181 150 Derivative contracts not designated as hedging instruments: Foreign exchange contracts Interest expense, net 301 112 55 Marketing, administration and research costs (d) (575) (169) 215 Total $ (563) $ 880 $ 628 $ 252 $ 254 $ 42 $ (20) $ 41 $ 421 (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 consolidated statements of earnings. As of December 31, 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 consolidated statements of cash flows. Fair Value Hedges PMI has entered into fixed-to-floating interest rate contracts, designated as fair value hedges to minimize exposure to changes in the fair value of fixed rate U.S. dollar-denominated debt that results from fluctuations in benchmark interest rates. For derivative contracts that are designated and qualify as fair value hedges the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged items attributable to the hedged risk, is recognized in current earnings. The carrying amount of the debt hedged, which includes the cumulative adjustment for fair value gains/losses, as of December 31, 2023 was $937 million, and is recorded in long-term debt in the consolidated balance sheets. The cumulative amount of fair value gains/(losses) included in the carrying amount of the debt hedged was $60 million as of December 31, 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. 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 $48 million , $521 million and $278 million, for the years ended December 31, 2023, 2022 and 2021, respectively. The premiums paid for, and settlements of, net investment hedges are included in investing cash flows on PMI’s consolidated statements of cash flows. Other Derivatives PMI has entered into derivative contracts to hedge the foreign currency exchange and interest rate risks related to intercompany loans between certain subsidiaries, 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 consolidated statements of earnings. Acquisition related transactions are included in investing cash flows on PMI’s 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: For the Years Ended December 31, (in millions) 2023 2022 2021 Gain/(loss) as of January 1, $ 266 $ 4 $ (85) Derivative (gains)/losses transferred to earnings (220) (219) (35) Change in fair value 195 481 124 Gain/(loss) as of December 31, $ 241 $ 266 $ 4 At December 31, 2023, PMI expects $78 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the consolidated statement of earnings within the next 12 months. These gains are expected to be substantially offset by the statement of earnings impact of the respective hedged transactions. Contingent Features PMI’s derivative instruments do not contain contingent features. Credit Exposure and Credit Risk |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses: | 12 Months Ended |
Dec. 31, 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 December 31, (in millions) 2023 2022 2021 Currency translation adjustments $ (9,467) $ (8,003) $ (6,701) Pension and other benefits (2,589) (1,822) (2,880) Derivatives accounted for as hedges 241 266 4 Total accumulated other comprehensive losses $ (11,815) $ (9,559) $ (9,577) 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 consolidated statements of comprehensive earnings for the years ended December 31, 2023, 2022, and 2021. For additional information, see Note 3. Acquisitions (Transactions With Noncontrolling Interests) for disclosures related to currency translation adjustments , Note 14. Benefit Plans for disclosures related to PMI's pension and other benefits and Note 16. Financial Instruments for disclosures related to derivative financial instruments. |
Contingencies_
Contingencies: | 12 Months Ended |
Dec. 31, 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 18. 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 March 29, 2024 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 $11.5 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 $67,000) in punitive damages, allocating CAD 30,000 (approximately $22,000) 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 $167 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 $561 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 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 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 $813 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 $97 million) in punitive damages, allocating CAD 46 million (approximately $34 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 $42 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 December 31, 2023, December 31, 2022 and December 31, 2021: Type of Case 1 Number of Cases Pending as of December 31, 2023 Number of Cases Pending as of December 31, 2022 Number of Cases Pending as of December 31, 2021 Individual Smoking and Health Cases 45 40 40 Smoking and Health Class Actions 9 9 9 Health Care Cost Recovery Actions 17 17 17 Label-Related Class Actions — — — Individual Label-Related Cases 4 6 3 Public Civil Actions 1 1 1 ______ ¹ Includes cases pending in Canada. Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 544 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 $11.5 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 $67,000) in punitive damages, allocating CAD 30,000 (approximately $22,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $740 million) of the compensatory damage award, CAD 200 million (approximately $148 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 $97 million) in punitive damages, allocating CAD 46 million (approximately $34 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 $133), 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 $181), in compensatory and moral damages, and ARS 4,000,000 (approximately $4,825) 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 $7,375), 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 $1,078) 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 $327) 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. On September 8, 2023, our subsidiary filed its appeal. On September 25, 2023, the plaintiff filed an appeal challenging the damages amount determined by the court. Pending claims related to tobacco products generally fall within the following categories: Smoking and Health Litigation: These cases primarily allege personal injury and are brought by individual plaintiffs or on behalf of a class or purported class of individual plaintiffs. Plaintiffs' allegations of liability in these cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, breach of express and implied warranties, violations of deceptive trade practice laws and consumer protection statutes. Plaintiffs in these cases seek various forms of relief, including compensatory and other damages, and injunctive and equitable relief. Defenses raised in these cases include licit activity, failure to state a claim, lack of defect, lack of proximate cause, assumption of the risk, contributory negligence, and statute of limitations. As of December 31, 2023, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 45 cases brought by individual plaintiffs in Argentina (31), Canada (2), Chile (11 ) , and Turkey (1), compared with 40 such cases on December 31, 2022, and 40 cases on December 31, 2021; and • 9 cases brought on behalf of classes of individual plaintiffs, compared with 9 such cases on December 31, 2022 and 9 such cases on December 31, 2021. 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 in |
Sale of Accounts Receivable_
Sale of Accounts Receivable: | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets. PMI sells trade receivables under two types of arrangements, servicing and non-servicing. For servicing arrangements, PMI continues to service the sold trade receivables on an administrative basis and does not act on behalf of the unaffiliated financial institutions. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material for the years ended December 31, 2023 and 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. |
Asset Impairment and Exit Costs
Asset Impairment and Exit Costs: | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs: | Asset Impairment and Exit Costs: For the years ended December 31, 2023 and 2021, PMI recorded total pre-tax asset impairment and exit costs of $109 million and $216 million, respectively, related to restructuring activities. These pre-tax asset impairment and exit costs were included in marketing, administration and research costs on the consolidated statements of earnings. For the year ended December 31, 2022, PMI did not record any charges for asset impairment and exit costs related to restructuring activities. For the year ended December 31, 2023, PMI recorded a pre-tax impairment charge on goodwill and other intangibles of $680 million within the Wellness and Healthcare segment. For the year ended December 31, 2022, PMI recorded a pre-tax impairment charge on other intangibles of $112 million within the Wellness and Healthcare segment. For further details, see Note 5. Goodwill and Other Intangible Assets, net . For the year ended December 31, 2023, PMI recorded an impairment of certain long-lived assets in Ukraine. See Note 4. War in Ukraine for the impact of the war on PMI. 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, payable in cash. This amount also included asset impairment costs of $31 million, primarily related to machinery and equipment, which were non-cash charges. South Korea In 2021, PM Korea implemented a new business operating model, which required the restructuring of its current distribution agreements. As a result, PMI recorded exit costs of $57 million in the year ended December 31, 2021, related to contract terminations and restructuring with certain distributors. Organizational Design Optimization As part of PMI’s transformation to a smoke-free future, PMI sought to optimize its organizational design, which included the elimination, relocation and outsourcing of certain operations center and centralized activities. In January 2020, PMI commenced a multi-phase restructuring project in Switzerland. PMI initiated the employee consultation procedures, as required under Swiss law, for the impacted employees. The consultation procedures for the first two phases were completed in 2020 with the final phases initiated and completed in 2021. Additionally, since the commencement of this multi-phase restructuring project in 2020, PMI launched a voluntary separation program in Switzerland for certain eligible employees and announced the outsourcing of certain activities in Argentina, Indonesia, Poland and the United States. This multi-phase restructuring project was completed in the fourth quarter of 2021. For the year ended December 31, 2021, PMI recorded pre-tax charges of $159 million related to the organizational design optimization. Since inception of this multi-phase restructuring project in January 2020 through December 31, 2021, approximately 1,020 positions in total were impacted, resulting in cumulative pre-tax charges of $308 million related to the organizational design optimization program. Of this cumulative pre-tax amount, $300 million related to separation program charges and $8 million related to asset impairment charges. Asset Impairment and Exit Costs by Segment During 2023 and 2021, PMI recorded the following pre-tax asset impairment and exit costs by segment related to restructuring activities: (in millions) 2023 2021 Separation programs: (1) Europe $ — $ 72 SSEA, CIS & MEA — 45 EA, AU & PMI DF — 34 Americas — 8 Swedish Match — — Wellness and Healthcare — — Total separation programs — 159 Contract termination charges: (1) Europe 35 — SSEA, CIS & MEA 25 — EA, AU & PMI DF 15 57 Americas 3 — Swedish Match — — Wellness and Healthcare — — Total contract termination charges 78 57 Asset impairment charges (1) Europe 14 — SSEA, CIS & MEA 9 — EA, AU & PMI DF 6 — Americas 2 — Swedish Match — — Wellness and Healthcare — — Total asset impairment charges 31 — Asset impairment and exit costs $ 109 216 (1) Organizational design optimization pre-tax charges in 2021 and e-vapor products manufacturing optimization charges in 2023 were allocated across all geographical segments. Movement in Exit Cost Liabilities The movement in exit cost liabilities for the year ended December 31, 2023 was as follows: (in millions) Liability balance, January 1, 2023 $ 40 Charges, net 78 Cash spent (79) Currency/other (10) Liability balance, December 31, 2023 $ 29 Future cash payments for exit costs incurred to date are anticipated to be substantially paid by the end of 2024. |
Leases_
Leases: | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases: | Leases: PMI has operating and finance leases that are principally for real estate (office space, warehouses and retail store space), machinery and equipment, and vehicles. Lease terms range from 1 year to 70 years, some of which include options to renew, which are reasonably certain to be renewed. Lease terms may also include options to terminate the lease. The exercise of a lease renewal or termination option is at PMI’s discretion. PMI’s operating and finance leases at December 31, 2023 and 2022, were as follows: At December 31, (in millions) 2023 2022 Operating Leases Finance Leases Operating Leases Finance Leases Assets: Machinery and equipment $ — $ 111 $ — $ 123 Other assets 631 — 594 — Total lease assets $ 631 $ 111 $ 594 $ 123 Liabilities: Current Current portion of long-term debt $ — $ 30 $ — $ 34 Accrued liabilities - Other 197 — 178 — Noncurrent Long-term debt — 23 — 20 Income taxes and other liabilities 456 — 436 — Total lease liabilities $ 653 $ 53 $ 614 $ 54 The components of PMI’s lease cost were as follows for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (in millions) 2023 2022 2021 Operating lease cost $ 266 $ 248 $ 259 Finance lease cost: Amortization of right-of-use assets 49 83 54 Interest on lease liabilities 1 1 1 Short-term lease cost 59 59 55 Variable lease cost 28 23 25 Total lease cost $ 403 $ 414 $ 394 Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2023, were as follows: (in millions) Operating Leases Finance Leases 2024 $ 228 $ 31 2025 159 12 2026 109 6 2027 72 5 2028 45 2 Thereafter 163 — Total lease payments 776 56 Less: Interest 123 3 Present value of lease liabilities $ 653 $ 53 Other information related to PMI’s leases was as follows for the years ended December 31, 2023, 2022 and 2021: December 31, (in millions) 2023 2022 2021 Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1) $ 265 $ — $ 243 $ — $ 259 $ — Cash paid for amounts included in the measurement of lease liabilities in financing cash flows $ — $ 27 $ — $ 76 $ — $ 26 Leased assets obtained in exchange for new lease liabilities $ 205 $ 55 $ 255 $ 100 $ 64 $ 89 Weighted-average remaining lease term (years) 10.2 2.6 10.3 2.1 8.3 1.7 Weighted-average discount rate (2) (3) 5.1 % 4.9 % 3.4 % 4.4 % 3.6 % 5.3 % (1) Cash paid included in the operating cash flows for finance leases is not material. (2) PMI’s weighted-average discount rate for operating leases is based on its estimated pre-tax cost of debt adjusted for country-specific risk. (3) PMI’s weighted-average discount rate for finance leases, excluding embedded leases, is based on its estimated pre-tax cost of debt adjusted for country-specific risk and where applicable the interest rate explicit in lease contracts. |
Supply Chain Financing_
Supply Chain Financing: | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Supply Chain Financing: | Supply Chain Financing: cash flows from operating activities |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards: Improvements to Reportable Segment Disclosures On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker that impact segment profit or loss. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. PMI is currently evaluating the impact of ASU 2023-07 on its disclosures. Improvements to Income Tax Disclosures On December 14, 2023, the FASB issued Accounting Standards Update ASU 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 enhances the transparency of income tax disclosures, primarily by requiring public business entities to disclose specific categories in the rate reconciliation tabular presentation, as well as by providing additional information for reconciling items that meet a quantitative threshold. The ASU also requires disaggregated disclosures of federal, state and foreign income tax taxes paid. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings attributable to PMI | $ 7,813 | $ 9,048 | $ 9,109 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: (Policy) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. Investments without readily determinable fair values, non-marketable equity securities, are measured and recorded using a measurement alternative that values the security at cost minus any impairment. All intercompany transactions and balances have been eliminated. |
Acquisitions | Acquisitions PMI uses the acquisition method of accounting for acquired businesses. Under the acquisition method, PMI’s consolidated financial statements reflect the operations of an acquired business starting from the closing date of the acquisition. PMI allocates the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date. Any residual purchase price is recorded as goodwill. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration are recognized in marketing, administration and research costs in the consolidated statement of earnings. Transaction costs are expensed as incurred. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Depreciation and Amortization | Depreciation and Amortization Property, plant and equipment are stated at historical cost and depreciated primarily using the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated primarily over periods ranging from 3 to 15 years, and buildings and building improvements primarily over periods up to 40 years. Definite-lived intangible assets are amortized over their useful lives. For further details, see Note 5. Goodwill and Other Intangible Assets, net |
Employee benefit plans | Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. |
Fair value measurements | Fair value measurements PMI follows ASC 820, Fair Value Measurements and Disclosures with respect to assets and liabilities that are measured at fair value. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of input that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Foreign currency translation | Foreign currency translation PMI translates the results of operations of its subsidiaries and affiliates, except those operating in highly inflationary economies, using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. |
Goodwill and non-amortizable intangible assets valuation | Goodwill and non-amortizable intangible assets valuation |
Hedging instruments | Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. |
Impairment of long-lived assets | Impairment of long-lived assets |
Investments in non-marketable equity securities and impairment of equity method investments | Investment in non-marketable equity securities Non-marketable equity securities are subject to periodic impairment reviews during which PMI considers both qualitative and quantitative factors that may have a significant impact on the investees' fair value. Upon determining that an impairment may exist, the security’s fair value is calculated and compared to its carrying value, and an impairment is recognized immediately if the carrying value exceeds the fair value. Impairment of equity method investments |
Income taxes | Income taxes |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. |
Leases | Leases |
Marketing costs | Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. |
Revenue recognition | Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and smoke-free products, including heat-not-burn, vapor and oral nicotine products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. |
Research and Development and Acquired In-Process Research and Development ("IPR&D") | Research and Development and Acquired In-Process Research and Development ("IPR&D") Research and development costs are expensed as incurred. In a business combination, the fair value of IPR&D acquired is initially capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the projects. Upon completion, a determination as to the useful life is performed and the intangible asset is accounted for as a definite-lived intangible asset. Both the indefinite and definite-lived intangible assets are subject to impairment testing annually or more frequently if indicators exist. In an asset acquisition, the initial cost to acquire the IPR&D is expensed in the consolidated statements of earnings when the project has no alternative future use. PMI records these costs within marketing, administration and research costs in its consolidated statements of earnings. |
Research and Development and Acquired In-Process Research and Development ("IPR&D") | Research and Development and Acquired In-Process Research and Development ("IPR&D") Research and development costs are expensed as incurred. In a business combination, the fair value of IPR&D acquired is initially capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the projects. Upon completion, a determination as to the useful life is performed and the intangible asset is accounted for as a definite-lived intangible asset. Both the indefinite and definite-lived intangible assets are subject to impairment testing annually or more frequently if indicators exist. In an asset acquisition, the initial cost to acquire the IPR&D is expensed in the consolidated statements of earnings when the project has no alternative future use. PMI records these costs within marketing, administration and research costs in its consolidated statements of earnings. |
Stock-based compensation | Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 10. Stock Plans . |
New Accounting Standards | New Accounting Standards: Improvements to Reportable Segment Disclosures On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker that impact segment profit or loss. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. PMI is currently evaluating the impact of ASU 2023-07 on its disclosures. Improvements to Income Tax Disclosures On December 14, 2023, the FASB issued Accounting Standards Update ASU 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 enhances the transparency of income tax disclosures, primarily by requiring public business entities to disclose specific categories in the rate reconciliation tabular presentation, as well as by providing additional information for reconciling items that meet a quantitative threshold. The ASU also requires disaggregated disclosures of federal, state and foreign income tax taxes paid. |
Acquisitions_ (Tables)
Acquisitions: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination, Purchase Price Allocation | The table below summarizes the final purchase price allocation for the fair value of assets acquired and liabilities assumed as of the acquisition date: (in millions) Preliminary Purchase Price Allocation Recognized as of the acquisition date Measurement Period Adjustments during 2023 Final Purchase Price Allocation Recognized as of Cash and cash equivalents $ 484 $ — $ 484 Trade receivables 135 — 135 Other receivables 53 — 53 Inventories 444 (7) 437 Other current assets 524 (109) 415 Property, plant and equipment 627 50 677 Other intangible assets 4,512 3,356 7,868 Other non-current assets 214 2 216 Current portion of long-term debt 224 — 224 Accounts payable 120 — 120 Other current liabilities 531 1 532 Income taxes 14 — 14 Long-term debt 1,126 (5) 1,121 Deferred income taxes 1,253 717 1,970 Other non-current liabilities 187 9 196 Identifiable net assets acquired 3,538 2,570 6,108 Noncontrolling interest 2,379 — 2,379 Goodwill 13,301 (2,570) 10,731 Total consideration transferred $ 14,460 $ — $ 14,460 |
Schedule of Intangible Assets Acquired as Part of Business Combination | Identifiable intangible assets of Swedish Match consist of: Type Useful Life Estimated Fair Value (in millions) Trademarks Non-amortizable $ 3,133 Trademarks Amortizable 20 - 30 years 1,067 Developed technology, including patents 10 years 113 Customer relationships 6 - 15 years 3,555 Total identifiable intangible assets $ 7,868 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information is as follows: For the Years Ended December 31, (in millions) 2022 2021 Net revenues $ 33,579 $ 33,488 Net earnings attributable to PMI $ 8,779 $ 8,484 |
War in Ukraine_ (Tables)
War in Ukraine: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Pretax Charges Related to Circumstances | December 31, 2023 and 2022, PMI recorded in its consolidated statements of earnings pre-tax charges related to circumstances driven by the war as follows: (in millions) 2023 2022 Cost of sales Marketing, administration and research costs Total Cost of sales Marketing, administration and research costs Total Ukraine 1 $ 15 $ 38 $ 53 $ 42 $ 36 $ 78 Russia 2 — — — 20 53 73 Total $ 15 $ 38 $ 53 $ 62 $ 89 $ 151 1 The 2023 pre-tax charges were primarily due to the cost of PMI’s humanitarian efforts, which includes salary continuation for its employees, severance payments, as well as an impairment of certain long-lived assets in the fourth quarter of 2023. The 2022 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 2022 pre-tax charges were primarily due to machinery and inventory write downs related to the commercial decisions noted above. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net: (Tables) | 12 Months Ended |
Dec. 31, 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 January 1, 2022 $ 1,455 $ 3,143 $ 540 $ 611 $ — $ 931 $ 6,680 Changes due to: Acquisitions — — — — 13,301 — 13,301 Currency (85) (274) (47) 4 (5) (109) (516) Other — — — — — 190 190 Balances, December 31, 2022 1,370 2,869 493 615 13,296 1,012 19,655 Changes due to: Impairment — — — — — (665) (665) Currency 69 8 (1) 89 151 43 359 Measurement period adjustments — — — — (2,570) — (2,570) Balances, December 31, 2023 $ 1,439 $ 2,877 $ 492 $ 704 $ 10,877 $ 390 $ 16,779 |
Schedule of Amortizable Intangible Assets | Details of other intangible assets were as follows: December 31, 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 $ 4,543 $ 4,543 $ 3,346 $ 3,346 Amortizable intangible assets: Trademarks 16 years 2,267 $ 784 1,483 2,050 $ 674 1,376 Developed technology, including patents 7 years 774 329 445 975 243 732 Customer relationships and other 12 years 3,843 450 3,393 1,390 112 1,278 Total other intangible assets $ 11,427 $ 1,563 $ 9,864 $ 7,761 $ 1,029 $ 6,732 |
Schedule of Non-Amortizable Intangible Assets | Details of other intangible assets were as follows: December 31, 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 $ 4,543 $ 4,543 $ 3,346 $ 3,346 Amortizable intangible assets: Trademarks 16 years 2,267 $ 784 1,483 2,050 $ 674 1,376 Developed technology, including patents 7 years 774 329 445 975 243 732 Customer relationships and other 12 years 3,843 450 3,393 1,390 112 1,278 Total other intangible assets $ 11,427 $ 1,563 $ 9,864 $ 7,761 $ 1,029 $ 6,732 |
Related Parties - Equity Inve_2
Related Parties - Equity Investments and Other: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Activity with Related Parties - Equity Investments and Other | PMI’s net revenues and expenses with the above related parties were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Net revenues: Megapolis Group $ 2,267 $ 2,485 $ 2,207 Other 1,286 1,173 1,123 Net revenues (a) $ 3,553 $ 3,658 $ 3,330 Expenses: Other $ 186 $ 119 $ 69 Expenses $ 186 $ 119 $ 69 (a) Net revenues exclude excise taxes and VAT billed to customers. PMI’s balance sheet activity with the above related parties was as follows: At December 31, (in millions) 2023 2022 Receivables: Megapolis Group $ 474 $ 478 Other 236 210 Receivables $ 710 $ 688 Payables: Other $ 18 $ 31 Payables $ 18 $ 31 |
Product Warranty_ (Tables)
Product Warranty: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Product Warranty | At December 31, 2023 and December 31, 2022, these amounts were as follows: At December 31, (in millions) 2023 2022 Balance at beginning of period $ 104 $ 113 Changes due to: Warranties issued 60 107 Settlements (83) (114) Currency/Other (1) (2) Balance at end of period $ 80 $ 104 |
Indebtedness_ (Tables)
Indebtedness: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | At December 31, 2023 and 2022, PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2023 December 31, 2022 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ 1,685 5.6 % $ 912 4.4 % Bank loans 283 8.9 295 7.5 U.S. dollar credit facility borrowings related to Swedish Match AB acquisition — — 4,430 4.9 $ 1,968 $ 5,637 |
Long-Term Debt | At December 31, 2023 and 2022, PMI’s long-term debt consisted of the following: December 31, (in millions) 2023 2022 U.S. dollar notes, 0.875% to 6.375% (average interest rate 4.446%), due through 2044 $ 30,272 $ 22,596 Foreign currency obligations: Euro notes, 0.125% to 3.125% (average interest rate 1.877%), due through 2039 8,526 8,116 Swiss franc note, 1.625%, due 2024 299 378 Euro credit facility borrowings related to Swedish Match AB acquisition, (average interest rate 4.453%), due through 2027 6,121 5,850 Swedish krona notes, 1.395% to 2.710% (average interest rate 2.016%), due through 2029 236 343 Other (average interest rate 6.027%), due through 2031 (a) 487 203 Carrying value of long-term debt 45,941 37,486 Less current portion of long-term debt 4,698 2,611 $ 41,243 $ 34,875 (a) |
Schedule of Fair Value of Outstanding Long-Term Debt, Excluding Finance Leases | At December 31, 2023 and 2022 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows: December 31, (in millions) 2023 2022 Level 1 $ 38,259 $ 28,919 Level 2 6,687 6,142 |
Debt Issuances Outstanding | PMI’s notes outstanding at December 31, 2023, were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $900 2.875% May 2019 May 2024 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $1,000 5.125% November 2022 November 2024 U.S. dollar notes $750 1.500% May 2020 May 2025 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 5.000% November 2022 November 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $1,250 4.875% February 2023 February 2026 U.S. dollar notes (a) $450 4.875% May 2023 February 2026 U.S. dollar notes $750 0.875% November 2020 May 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $1,500 5.125% November 2022 November 2027 U.S. dollar notes $1,000 4.875% February 2023 February 2028 U.S. dollar notes (b) $550 4.875% May 2023 February 2028 U.S. dollar notes $500 3.125% November 2017 March 2028 U.S. dollar notes (c) $50 4.000% May 2013 May 2028 U.S. dollar notes $650 5.250% September 2023 September 2028 U.S. dollar notes $750 3.375% May 2019 August 2029 U.S. dollar notes $1,250 5.625% November 2022 November 2029 U.S. dollar notes $1,500 5.125% February 2023 February 2030 U.S. dollar notes (d) $700 5.125% May 2023 February 2030 U.S. dollar notes $750 2.100% May 2020 May 2030 U.S. dollar notes $700 5.500% September 2023 September 2030 U.S. dollar notes $750 1.750% November 2020 November 2030 U.S. dollar notes $1,500 5.750% November 2022 November 2032 U.S. dollar notes $1,500 5.375% February 2023 February 2033 U.S. dollar notes (e) $750 5.375% May 2023 February 2033 U.S. dollar notes $1,000 5.625% September 2023 September 2033 U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (f) $500 4.250% May 2016 November 2044 EURO notes (g) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (c) €300 (approximately $308) 0.875% September 2016 September 2024 EURO notes (g) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (g) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (c) €200 (approximately $205) 1.200% November 2017 November 2025 EURO notes (c) €50 (approximately $51) 1.200% December 2020 November 2025 EURO notes (c) €50 (approximately $51) 1.200% June 2021 November 2025 (in millions) Type Face Value Interest Issuance Maturity EURO notes (g) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (g) €500 (approximately $557) 0.125% August 2019 August 2026 EURO notes (c) €300 (approximately $308) 0.875% February 2020 February 2027 EURO notes (g) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (g) €750 (approximately $835) 0.800% August 2019 August 2031 EURO notes (g) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (g) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (g) €500 (approximately $582) 1.875% November 2017 November 2037 EURO notes (g) €750 (approximately $835) 1.450% August 2019 August 2039 Swiss franc notes (g) CHF250 (approximately $283) 1.625% May 2014 May 2024 Swedish krona notes (c) SEK1,000 (approximately $95) 2.710% January 2019 January 2026 Swedish krona notes (c) SEK700 (approximately $67) 1.395% February 2021 February 2026 Swedish krona notes (c) SEK100 (approximately $10) 1.395% March 2021 February 2026 Swedish krona notes (c) SEK200 (approximately $19) 1.395% September 2021 February 2026 Swedish krona notes (c) SEK200 (approximately $19) 1.395% January 2022 February 2026 Swedish krona notes (c) SEK300 (approximately $29) 2.190% April 2021 April 2029 (a) These notes are a further issuance of the 4.875% notes issued in February 2023. (b) These notes are a further issuance of the 4.875% notes issued in February 2023. (c) Notes issued by Swedish Match AB. USD equivalents for foreign currency notes were calculated based on exchange rates on the date of acquisition. (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. (f) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (g) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. |
Schedule of Maturities of Long-term Debt | Aggregate maturities of long-term debt are as follows: (in millions) 2024 $ 4,709 2025 6,785 2026 5,117 2027 5,141 2028 2,771 2029-2033 13,312 2034-2038 2,613 Thereafter 5,885 46,333 Debt discounts and fair value adjustments (392) Total long-term debt $ 45,941 |
Schedule of Committed Credit Facilities | At December 31, 2023, PMI’s total committed revolving credit facilities were as follows: Type Committed Revolving Credit Facilities 364-day revolving credit, expiring January 30, 2024 (1) $ 1.8 Multi-year revolving credit, expiring February 10, 2026 (2) 2.0 Multi-year revolving credit, expiring September 29, 2026 (3) (4) 2.5 Total facilities $ 6.3 (1) On January 24, 2024, PMI entered into an agreement to extend the term of its 364-day committed revolving credit facility in the amount of $1.7 billion from January 30, 2024, to January 28, 2025. (2) 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. (3) 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. (4) |
Capital Stock_ (Tables)
Capital Stock: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Common Stock | Shares of authorized common stock are 6.0 billion; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2021 2,109,316,331 (551,942,600) 1,557,373,731 Repurchase of shares (8,514,629) (8,514,629) Issuance of stock awards 1,310,891 1,310,891 Balances, December 31, 2021 2,109,316,331 (559,146,338) 1,550,169,993 Repurchase of shares (1,966,730) (1,966,730) Issuance of stock awards 2,014,448 2,014,448 Balances, December 31, 2022 2,109,316,331 (559,098,620) 1,550,217,711 Repurchase of shares — — Issuance of stock awards 2,206,820 2,206,820 Balances, December 31, 2023 2,109,316,331 (556,891,800) 1,552,424,531 |
Stock Plans_ (Tables)
Stock Plans: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Activity for Restricted Stock | During 2023, the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2023 4,519,470 $ 91.26 Granted 1,756,750 101.96 Vested (1,483,356) 87.30 Forfeited (189,543) 96.96 Balance at December 31, 2023 4,603,321 $ 96.38 |
Schedule of Weighted Average Grant Date Fair Value and Compensation Expense Related to Share-Based Awards | During the years ended December 31, 2023, 2022 and 2021, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2023 $ 179 $ 101.96 $ 153 2022 $ 174 $ 104.75 $ 135 2021 $ 166 $ 82.17 $ 139 During the years ended December 31, 2023, 2022 and 2021, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) Weighted- Weighted- Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2023 $ 29 $ 102.02 $ 26 $ 133.54 $ 59 2022 $ 30 $ 104.92 $ 27 $ 143.89 $ 48 2021 $ 28 $ 81.86 $ 25 $ 106.93 $ 71 During the years ended December 31, 2023, 2022 and 2021, share and fair value information for PMI PSU awards that vested were as follows: (dollars in millions) Shares of PSU Awards that Vested Grant Date Fair Value of Vested Shares of PSU Awards Total Fair Value of PSU Awards that Vested 2023 902,232 $ 83 $ 91 2022 669,960 $ 54 $ 74 2021 189,839 $ 21 $ 16 |
Schedule of Share and Fair Value Information for RSU Awards that Vested | During the years ended December 31, 2023, 2022 and 2021, share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2023 1,483,356 $ 129 $ 148 2022 1,603,571 $ 126 $ 174 2021 1,256,441 $ 121 $ 111 |
Activity for Performance Share Unit Awards | During 2023, the activity for PSU awards was as follows: Number of Weighted- Weighted- (Per Share) (Per Share) Balance at January 1, 2023 1,507,190 $ 90.31 $ 115.45 Granted 482,360 102.02 133.54 Vested (902,232) 85.99 98.45 Adjustments for performance achievement 400,992 85.99 98.45 Forfeited (61,030) 98.24 131.39 Balance at December 31, 2023 1,427,280 $ 95.45 $ 126.86 |
Schedule of Assumptions Used for PSU | The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, 2023 2022 2021 Average risk-free interest rate (a) 4.1 % 1.7 % 0.2 % Average expected volatility (b) 24.3 % 28.3 % 31.7 % (a) Based on the U.S. Treasury yield curve. (b) Determined using the observed historical volatility. |
Earnings per Share_ (Tables)
Earnings per Share: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2023 2022 2021 Net earnings attributable to PMI $ 7,813 $ 9,048 $ 9,109 Less distributed and undistributed earnings attributable to share-based payment awards 22 24 26 Net earnings for basic and diluted EPS $ 7,791 $ 9,024 $ 9,083 Weighted-average shares for basic EPS 1,552 1,550 1,558 Plus contingently issuable performance stock units (PSUs) (1) 1 2 1 Weighted-average shares for diluted EPS 1,553 1,552 1,559 (1) Including rounding adjustment |
Income Taxes_ (Tables)
Income Taxes: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings Before Income Taxes and Provision For Income Taxes | Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2023, 2022 and 2021: (in millions) 2023 2022 2021 Earnings before income taxes $ 10,450 $ 11,634 $ 12,232 Provision for income taxes: United States federal and state: Current $ 201 $ (75) $ 73 Deferred (368) (139) 27 Total United States (167) (214) 100 Outside United States: Current 2,468 2,553 2,616 Deferred 38 (95) (45) Total outside United States 2,506 2,458 2,571 Total provision for income taxes $ 2,339 $ 2,244 $ 2,671 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2023 2022 2021 Balance at January 1, $ 72 $ 89 $ 72 Additions based on tax positions related to the current year 7 12 12 Additions for tax positions of previous years 1 2 15 Reductions for tax positions of prior years (23) (18) (1) Reductions due to lapse of statute of limitations (3) (6) (3) Settlements — (4) — Other 1 (3) (6) Balance at December 31, $ 55 $ 72 $ 89 |
Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties | Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2023 December 31, 2022 December 31, 2021 Unrecognized tax benefits $ 55 $ 72 $ 89 Accrued interest and penalties 9 13 18 Tax credits and other indirect benefits (1) (3) (7) Liability for tax contingencies $ 63 $ 82 $ 100 |
Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: Foreign rate differences (1.0) (0.5) (0.3) Dividend repatriation cost 0.8 0.7 0.6 Global intangible low-taxed income 2.0 1.0 0.8 U.S. state taxes (0.1) 0.1 0.2 Foreign derived intangible income (0.9) (0.8) (0.7) Foreign exchange (1.6) (1.7) — Non-deductible goodwill impairment 1.3 — — Unremitted earnings of Russian subsidiaries 1.7 — — Other (0.8) (0.5) 0.2 Effective tax rate 22.4 % 19.3 % 21.8 % |
Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2023 2022 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 223 $ 217 Accrued pension costs 450 277 Inventory 27 22 Accrued liabilities 191 158 Net operating loss, tax credit, and other carryforwards 501 384 Foreign exchange 149 — Other 19 — Total deferred income tax assets 1,560 1,058 Less: valuation allowance (369) (378) Deferred income tax assets, net of valuation allowance 1,191 680 Deferred income tax liabilities: Intangible assets (2,136) (1,485) Property, plant and equipment (218) (200) Unremitted earnings (358) (141) Foreign exchange — (175) Other — (32) Total deferred income tax liabilities (2,712) (2,033) Net deferred income tax assets (liabilities) $ (1,521) $ (1,353) |
Segment Reporting_ (Tables)
Segment Reporting: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Data | Net revenues by segment were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Net revenues: Europe $ 13,598 $ 12,869 $ 13,155 SSEA, CIS & MEA 10,629 10,467 9,858 EA, AU & PMI DF 6,201 5,936 6,448 Americas 1,944 1,903 1,843 Swedish Match 2,496 316 — Wellness and Healthcare 306 271 101 Net revenues $ 35,174 $ 31,762 $ 31,405 PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Combustible tobacco products: Europe $ 8,037 $ 7,694 $ 8,767 SSEA, CIS & MEA 9,321 9,173 8,734 EA, AU & PMI DF 2,676 2,831 2,861 Americas 1,869 1,804 1,706 Swedish Match 431 70 — Total combustible tobacco products 22,334 21,572 22,067 Smoke-free products: Smoke-free products excluding Wellness and Healthcare: Europe 5,561 5,175 4,388 SSEA, CIS & MEA 1,308 1,294 1,124 EA, AU & PMI DF 3,525 3,105 3,587 Americas 75 99 137 Swedish Match 2,065 246 — Total smoke-free products excluding Wellness and Healthcare 12,534 9,919 9,237 Wellness and Healthcare 306 271 101 Total smoke-free products 12,840 10,190 9,338 Total PMI net revenues $ 35,174 $ 31,762 $ 31,405 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Operating income (loss) by segment were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Operating income (loss): Europe $ 6,012 $ 5,802 $ 6,409 SSEA, CIS & MEA 3,047 3,864 3,295 EA, AU & PMI DF 2,481 2,424 2,836 Americas 62 436 487 Swedish Match 824 (22) — Wellness and Healthcare (870) (258) (52) Operating income $ 11,556 $ 12,246 $ 12,975 |
Other Segment Data | Other segment data were as follows: For the Years Ended December 31, (in millions) 2023 2022 2021 Depreciation and amortization expense: Europe $ 333 $ 377 $ 371 SSEA, CIS & MEA 309 340 354 EA, AU & PMI DF 148 167 168 Americas 77 74 71 Swedish Match 447 34 — Wellness and Healthcare 84 85 34 Total depreciation and amortization expense $ 1,398 $ 1,077 $ 998 For the Years Ended December 31, (in millions) 2023 2022 2021 Capital expenditures: Europe $ 778 $ 642 $ 481 SSEA, CIS & MEA 287 258 149 EA, AU & PMI DF 38 25 36 Americas 57 92 54 Swedish Match 127 15 — Wellness and Healthcare 34 45 28 Total capital expenditures $ 1,321 $ 1,077 $ 748 PMI’s total property, plant and equipment, net and other assets by geographic area were: At December 31, (in millions) 2023 2022 2021 Long-lived assets: Europe $ 5,697 $ 5,179 $ 4,918 SSEA, CIS & MEA 2,197 2,047 2,181 East Asia and Australia 481 675 742 Americas 1,310 1,282 666 Total long-lived assets 9,685 9,183 8,507 Altria Group, Inc. agreement 2,777 1,002 — Financial instruments 701 456 210 Total property, plant and equipment, net and Other assets $ 13,163 $ 10,641 $ 8,717 |
Benefit Plans_ (Tables)
Benefit Plans: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Other Employee Benefit Costs | Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2023, 2022 and 2021: (in millions) 2023 2022 2021 Net pension costs (income) $ (84) $ (93) $ (1) Net postemployment costs 117 107 108 Net postretirement costs 12 10 8 Total pension and other employee benefit costs $ 45 $ 24 $ 115 |
Change in Benefit Obligations | The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation, plan assets and net amount accrued for PMI's postretirement health care plans, at December 31, 2023 and 2022, were as follows: Pension (1) Postretirement (in millions) 2023 2022 2023 2022 Benefit obligation at January 1 $ 8,606 $ 10,998 $ 229 $ 198 Service cost 174 233 4 2 Interest cost 258 78 12 6 Benefits paid (520) (429) (13) (9) Employee contributions 145 141 — — Settlement, curtailment and plan amendment (17) (17) — — Actuarial losses (gains) 1,209 (2,294) 24 (46) Currency 763 (434) (4) (5) Acquisition of Swedish Match — 316 — 85 Other (51) 14 (6) (2) Benefit obligation at December 31, 10,567 8,606 246 229 Fair value of plan assets at January 1, 7,939 9,337 3 — Actual return on plan assets 643 (1,061) — — Employer contributions, net of refunds 21 (3) 13 9 Employee contributions 145 141 — — Benefits paid (520) (429) (13) (9) Settlement (17) (14) — — Currency 639 (333) — — Acquisition of Swedish Match — 303 — 3 Other 1 (2) — — Fair value of plan assets at December 31, 8,851 7,939 3 3 Net pension and postretirement liability recognized at December 31, $ (1,716) $ (667) $ (243) $ (226) (1) Primarily non-U.S. based defined benefit retirement plans. |
Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheets | At December 31, 2023 and 2022, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2023 2022 2023 2022 Other assets $ 294 $ 410 Accrued liabilities — employment costs (31) (32) $ (12) $ (11) Long-term employment costs (1,979) (1,045) (231) (215) $ (1,716) $ (667) $ (243) $ (226) |
Schedule of Assumptions Used | The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2023 2022 2023 2022 Discount rate 2.28 % 3.03 % 5.19 % 5.89 % Rate of compensation increase 2.05 1.98 Interest crediting rate 2.99 2.97 Health care cost trend rate assumed for next year 6.54 6.14 Ultimate trend rate 4.49 4.78 Year that rate reaches the ultimate trend rate 2047 2046 The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2023 2022 2021 2023 2022 2021 Discount rate - service cost 3.27 % 1.03 % 0.72 % 5.89 % 3.08 % 2.84 % Discount rate - interest cost 3.03 0.71 0.44 5.89 3.08 2.84 Expected rate of return on plan assets 4.42 4.17 4.43 Rate of compensation increase 1.98 1.77 1.79 Interest crediting rate 2.97 3.15 3.20 Health care cost trend rate 6.14 6.27 6.21 |
Components of Net Periodic Benefit Cost | Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2023, 2022 and 2021: Pension Postretirement (in millions) 2023 2022 2021 2023 2022 2021 Service cost $ 174 $ 233 $ 291 $ 4 $ 2 $ 2 Interest cost 258 78 50 12 6 5 Expected return on plan assets (365) (352) (371) — — — Amortization: Net losses 18 181 314 (1) 2 3 Prior service cost (credit) (2) (2) 1 — — — Net transition obligation — — — — — — Settlement and curtailment 7 2 5 1 2 — Net periodic pension and postretirement costs $ 90 $ 140 $ 290 $ 16 $ 12 $ 10 |
Fair Value of Pension Plan Assets | The fair value of PMI’s pension plan assets at December 31, 2023 and 2022, by asset category was as follows: Asset Category At December 31, 2023 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 117 $ 117 Equity securities: U.S. securities 158 158 International securities 569 569 Investment funds (a) 7,123 5,366 $ 1,757 Government bonds 255 183 72 Corporate bonds 320 320 Other 37 — 5 32 (c) Total assets in the fair value hierarchy $ 8,579 $ 6,713 $ 1,834 $ 32 Investment funds measured at net asset value (b) 272 Total assets $ 8,851 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan, Emerging Markets for equities, and FTSE EMU, FTSE Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% are invested in U.S. and international equities; 15% are invested in U.S. and international government bonds; 15% are invested in corporate bonds and 13% are invested in real estate. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (c) Amount relates to annuity policies of which the fair value is calculated using an actuarial model. Asset Category At December 31, 2022 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 79 $ 79 Equity securities: U.S. securities 140 140 International securities 521 521 Investment funds (a) 6,419 4,870 $ 1,549 Government bonds 178 117 61 Corporate bonds 302 302 Other 35 — 3 32 (c) Total assets in the fair value hierarchy $ 7,674 $ 6,029 $ 1,613 $ 32 Investment funds measured at net asset value (b) 265 Total assets $ 7,939 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000, S&P 500 for equities and Citigroup EMU, Citigroup Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% were invested in U.S. and international equities; 15% were invested in U.S. and international government bonds; 16% were invested in corporate bonds, and 12% were invested in real estate. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (c) |
Estimated Future Benefit Payments | The estimated future benefit payments from PMI pension plans at December 31, 2023, are as follows: (in millions) 2024 $ 417 2025 430 2026 428 2027 438 2028 457 2029 - 2033 2,490 |
Amounts Recorded in Accumulated Other Comprehensive Losses | The amounts recorded in accumulated other comprehensive losses at December 31, 2023, consisted of the following: (in millions) Pension Post- Post- Total Net (losses) gains $ (2,325) $ (36) $ (770) $ (3,131) Prior service (cost) credit 77 1 (21) 57 Net transition (obligation) asset (3) — — (3) Deferred income taxes 283 19 186 488 Losses to be amortized $ (1,968) $ (16) $ (605) $ (2,589) The amounts recorded in accumulated other comprehensive losses at December 31, 2022, consisted of the following: (in millions) Pension Post- Post- Total Net (losses) gains $ (1,437) $ (14) $ (753) $ (2,204) Prior service (cost) credit 70 1 (21) 50 Net transition (obligation) asset (3) — — (3) Deferred income taxes 138 14 183 335 Losses to be amortized $ (1,232) $ 1 $ (591) $ (1,822) The amounts recorded in accumulated other comprehensive losses at December 31, 2021, consisted of the following: (in millions) Pension Post- Post- Total Net (losses) gains $ (2,495) $ (64) $ (884) $ (3,443) Prior service (cost) credit 71 1 (22) 50 Net transition (obligation) asset (3) — — (3) Deferred income taxes 278 24 214 516 Losses to be amortized $ (2,149) $ (39) $ (692) $ (2,880) |
Movements in Other Comprehensive Earnings (Losses) | The movements in other comprehensive earnings (losses) during the year ended December 31, 2023, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses (gains) $ 19 $ 1 $ 76 $ 96 Prior service cost (credit) 7 — — 7 Net transition obligation (asset) — — — — Other income/expense: Net losses (gains) 11 1 — 12 Prior service cost (credit) — — — — Deferred income taxes (9) (1) (18) (28) 28 1 58 87 Other movements during the year: Net (losses) gains (918) (24) (93) (1,035) Prior service (cost) credit — — — — Deferred income taxes 154 6 21 181 (764) (18) (72) (854) Total movements in other comprehensive earnings (losses) $ (736) $ (17) $ (14) $ (767) The movements in other comprehensive earnings (losses) during the year ended December 31, 2022, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses (gains) $ 178 $ 3 $ 85 $ 266 Prior service cost (credit) (4) — — (4) Other income/expense: Net losses (gains) 2 1 — 3 Prior service cost (credit) — — 1 1 Deferred income taxes (28) (1) (20) (49) 148 3 66 217 Other movements during the year: Net (losses) gains 878 46 46 970 Prior service (cost) credit 3 — — 3 Deferred income taxes (112) (9) (11) (132) 769 37 35 841 Total movements in other comprehensive earnings (losses) $ 917 $ 40 $ 101 $ 1,058 The movements in other comprehensive earnings (losses) during the year ended December 31, 2021, were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings: Amortization: Net losses (gains) $ 294 $ 4 $ 85 $ 383 Prior service cost (credit) 7 (1) — 6 Other income/expense: Net losses (gains) 5 1 — 6 Prior service cost (credit) — — — — Deferred income taxes (51) (1) (20) (72) 255 3 65 323 Other movements during the year: Net (losses) gains 1,353 (5) (130) 1,218 Prior service (cost) credit 42 — — 42 Deferred income taxes (241) 1 30 (210) 1,154 (4) (100) 1,050 Total movements in other comprehensive earnings (losses) $ 1,409 $ (1) $ (35) $ 1,373 |
Additional Information_ (Tables
Additional Information: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Additional Information [Abstract] | |
Schedule of Additional Information | For the Years Ended December 31, (in millions) 2023 2022 2021 Depreciation expense $ 901 $ 918 $ 902 Research and development expense $ 709 $ 642 $ 617 Advertising expense $ 965 $ 777 $ 807 Foreign currency net transaction (gains)/losses $ 305 $ 199 $ 45 Interest expense $ 1,526 $ 768 $ 737 Interest income (465) (180) (109) Interest expense, net $ 1,061 $ 588 $ 628 |
Financial Instruments_ (Tables)
Financial Instruments: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The gross notional amounts for outstanding derivatives as of December 31, 2023 and 2022, were as follows: (in millions) 2023 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts $ 21,987 $ 17,627 Interest rate contracts 3,600 1,019 Commodity contracts 20 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts 17,658 21,755 Total $ 43,265 $ 40,401 |
Fair Value of Derivative Contracts | The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2023 and 2022, were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2023 2022 Balance Sheet Classification 2023 2022 Derivative contracts designated as hedging instruments: Foreign exchange contracts Other current assets $ 345 $ 376 Other accrued liabilities $ 249 $ 126 Other assets 153 341 Income taxes and other liabilities 449 147 Interest rate contracts Other current assets 1 — Other accrued liabilities 78 27 Other assets — — Income taxes and other liabilities 18 56 Commodity contracts Other current assets — — Other accrued liabilities 5 — Other assets — — Income taxes and other liabilities 1 — Derivative contracts not designated as hedging instruments: Foreign exchange contracts Other current assets 85 156 Other accrued liabilities 425 165 Other assets — — Income taxes and other liabilities 143 16 Total gross amount derivatives contracts presented in the consolidated balance sheets $ 584 $ 873 $ 1,368 $ 537 Gross amounts not offset in the consolidated balance sheets Financial instruments (374) (346) (374) (346) Cash collateral received/pledged (109) (341) (551) (48) Net amount $ 101 $ 186 $ 443 $ 143 |
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings | For the years ended December 31, 2023, 2022 and 2021, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, in millions) For the Years Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Recognized in Earnings 2023 2022 2021 2023 2022 2021 2023 2022 2021 Derivative contracts designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 195 $ 288 $ 138 Net revenues $ 194 $ 233 $ 59 Cost of sales — — — Marketing, administration and research costs 27 30 (10) Interest expense, net (15) (7) (6) Interest rate contracts 37 292 6 Interest expense, net 46 (2) (1) Commodity contracts (7) — — Cost of sales — — — Fair value hedges: Interest rate contracts Interest expense, net (a) $ (14) $ (83) $ 1 Net investment hedges (b): Foreign exchange contracts (788) 300 484 Interest expense, net (c) 268 181 150 Derivative contracts not designated as hedging instruments: Foreign exchange contracts Interest expense, net 301 112 55 Marketing, administration and research costs (d) (575) (169) 215 Total $ (563) $ 880 $ 628 $ 252 $ 254 $ 42 $ (20) $ 41 $ 421 (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: For the Years Ended December 31, (in millions) 2023 2022 2021 Gain/(loss) as of January 1, $ 266 $ 4 $ (85) Derivative (gains)/losses transferred to earnings (220) (219) (35) Change in fair value 195 481 124 Gain/(loss) as of December 31, $ 241 $ 266 $ 4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Losses, Net of Taxes | PMI's accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At December 31, (in millions) 2023 2022 2021 Currency translation adjustments $ (9,467) $ (8,003) $ (6,701) Pension and other benefits (2,589) (1,822) (2,880) Derivatives accounted for as hedges 241 266 4 Total accumulated other comprehensive losses $ (11,815) $ (9,559) $ (9,577) |
Contingencies_ (Tables)
Contingencies: (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023, December 31, 2022 and December 31, 2021: Type of Case 1 Number of Cases Pending as of December 31, 2023 Number of Cases Pending as of December 31, 2022 Number of Cases Pending as of December 31, 2021 Individual Smoking and Health Cases 45 40 40 Smoking and Health Class Actions 9 9 9 Health Care Cost Recovery Actions 17 17 17 Label-Related Class Actions — — — Individual Label-Related Cases 4 6 3 Public Civil Actions 1 1 1 |
Schedule of Verdicts and Post Trial Developments | 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 $11.5 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 $67,000) in punitive damages, allocating CAD 30,000 (approximately $22,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $740 million) of the compensatory damage award, CAD 200 million (approximately $148 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 $97 million) in punitive damages, allocating CAD 46 million (approximately $34 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 $133), 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 $181), in compensatory and moral damages, and ARS 4,000,000 (approximately $4,825) 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 $7,375), 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 $1,078) 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 $327) 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. On September 8, 2023, our subsidiary filed its appeal. On September 25, 2023, the plaintiff filed an appeal challenging the damages amount determined by the court. |
Asset Impairment and Exit Cos_2
Asset Impairment and Exit Costs: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment and Exit Costs by Segment Related to Restructuring Activities | During 2023 and 2021, PMI recorded the following pre-tax asset impairment and exit costs by segment related to restructuring activities: (in millions) 2023 2021 Separation programs: (1) Europe $ — $ 72 SSEA, CIS & MEA — 45 EA, AU & PMI DF — 34 Americas — 8 Swedish Match — — Wellness and Healthcare — — Total separation programs — 159 Contract termination charges: (1) Europe 35 — SSEA, CIS & MEA 25 — EA, AU & PMI DF 15 57 Americas 3 — Swedish Match — — Wellness and Healthcare — — Total contract termination charges 78 57 Asset impairment charges (1) Europe 14 — SSEA, CIS & MEA 9 — EA, AU & PMI DF 6 — Americas 2 — Swedish Match — — Wellness and Healthcare — — Total asset impairment charges 31 — Asset impairment and exit costs $ 109 216 (1) Organizational design optimization pre-tax charges in 2021 and e-vapor products manufacturing optimization charges in 2023 were allocated across all geographical segments. |
Movement in Exit Cost Liabilities | The movement in exit cost liabilities for the year ended December 31, 2023 was as follows: (in millions) Liability balance, January 1, 2023 $ 40 Charges, net 78 Cash spent (79) Currency/other (10) Liability balance, December 31, 2023 $ 29 |
Leases_ (Tables)
Leases: (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating and Finance Lease Assets and Liabilities | PMI’s operating and finance leases at December 31, 2023 and 2022, were as follows: At December 31, (in millions) 2023 2022 Operating Leases Finance Leases Operating Leases Finance Leases Assets: Machinery and equipment $ — $ 111 $ — $ 123 Other assets 631 — 594 — Total lease assets $ 631 $ 111 $ 594 $ 123 Liabilities: Current Current portion of long-term debt $ — $ 30 $ — $ 34 Accrued liabilities - Other 197 — 178 — Noncurrent Long-term debt — 23 — 20 Income taxes and other liabilities 456 — 436 — Total lease liabilities $ 653 $ 53 $ 614 $ 54 |
Lease Cost Components | The components of PMI’s lease cost were as follows for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (in millions) 2023 2022 2021 Operating lease cost $ 266 $ 248 $ 259 Finance lease cost: Amortization of right-of-use assets 49 83 54 Interest on lease liabilities 1 1 1 Short-term lease cost 59 59 55 Variable lease cost 28 23 25 Total lease cost $ 403 $ 414 $ 394 |
Operating and Finance Lease Liability Maturity | Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2023, were as follows: (in millions) Operating Leases Finance Leases 2024 $ 228 $ 31 2025 159 12 2026 109 6 2027 72 5 2028 45 2 Thereafter 163 — Total lease payments 776 56 Less: Interest 123 3 Present value of lease liabilities $ 653 $ 53 |
Other Lease Information | Other information related to PMI’s leases was as follows for the years ended December 31, 2023, 2022 and 2021: December 31, (in millions) 2023 2022 2021 Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1) $ 265 $ — $ 243 $ — $ 259 $ — Cash paid for amounts included in the measurement of lease liabilities in financing cash flows $ — $ 27 $ — $ 76 $ — $ 26 Leased assets obtained in exchange for new lease liabilities $ 205 $ 55 $ 255 $ 100 $ 64 $ 89 Weighted-average remaining lease term (years) 10.2 2.6 10.3 2.1 8.3 1.7 Weighted-average discount rate (2) (3) 5.1 % 4.9 % 3.4 % 4.4 % 3.6 % 5.3 % (1) Cash paid included in the operating cash flows for finance leases is not material. (2) PMI’s weighted-average discount rate for operating leases is based on its estimated pre-tax cost of debt adjusted for country-specific risk. (3) PMI’s weighted-average discount rate for finance leases, excluding embedded leases, is based on its estimated pre-tax cost of debt adjusted for country-specific risk and where applicable the interest rate explicit in lease contracts. |
Background and Basis of Prese_2
Background and Basis of Presentation: (Narrative) (Details) - segment | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Geographical Segment | ||
Product Information [Line Items] | ||
Number of reportable segments | 4 | 6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: (Details) | Dec. 31, 2023 |
Minimum | Machinery and Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 3 years |
Maximum | Machinery and Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 15 years |
Maximum | Building and Building Improvements | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 40 years |
Acquisitions_ Narrative (Detail
Acquisitions: Narrative (Details) £ / shares in Units, $ in Millions, £ in Billions, kr in Billions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||||||||
Nov. 11, 2023 USD ($) | Sep. 12, 2023 kr / shares | Nov. 11, 2022 USD ($) | Mar. 31, 2022 segment | Sep. 15, 2021 USD ($) | Sep. 15, 2021 DKK (kr) | Sep. 15, 2021 GBP (£) | Aug. 09, 2021 USD ($) | May 06, 2021 USD ($) | Jan. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Nov. 11, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 14, 2023 USD ($) | Feb. 17, 2023 | Oct. 20, 2022 USD ($) | Sep. 15, 2021 £ / shares | |
Business Acquisition [Line Items] | ||||||||||||||||||||||
Other | $ (1) | |||||||||||||||||||||
Proceeds from sale of holdings | $ 258 | |||||||||||||||||||||
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | $ 883 | $ 1,495 | 0 | |||||||||||||||||||
Goodwill (Note 5) | $ 19,655 | $ 19,655 | 16,779 | $ 19,655 | $ 6,680 | |||||||||||||||||
Goodwill | (2,570) | |||||||||||||||||||||
Research and Development Asset Acquired Other than through Business Combination, Writeoff, Statement of Income or Comprehensive Income [Extensible Enumeration] | Marketing, administration and research costs 4 (Notes 3, 4, 5, 13, 18 & 20) | |||||||||||||||||||||
Number of operating segments | segment | 1 | |||||||||||||||||||||
Additional Paid-in Capital | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Other | $ (1) | |||||||||||||||||||||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2) | 36 | |||||||||||||||||||||
Total accumulated other comprehensive losses | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2) | $ 179 | |||||||||||||||||||||
Altria Group | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Commercial agreement, total cash consideration | $ 2,700 | |||||||||||||||||||||
Commercial agreement, initial payment | 1,000 | |||||||||||||||||||||
Commercial agreement, remaining payment | $ 1,700 | $ 1,700 | ||||||||||||||||||||
Commercial agreement, interest rate | 6% | |||||||||||||||||||||
OtiTopic Inc Asset Acquisition | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Asset acquisition, percentage of shares acquired | 100% | |||||||||||||||||||||
Asset acquisition, consideration transferred | $ 38 | |||||||||||||||||||||
Asset acquisition, contingent payment | 13 | |||||||||||||||||||||
Asset acquisition, future additional contingent payments | $ 25 | |||||||||||||||||||||
Pre-tax charge associated with asset acquisition | 51 | |||||||||||||||||||||
Noncontrolling Interest Purchase Philip Morris Tütün Mamulleri Sanayi ve Ticaret A.Ş. | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Interest acquired (as a percent) | 25% | 25% | ||||||||||||||||||||
Noncontrolling Interest Purchase Philip Morris Pazarlama ve Satış A.Ş. | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Interest acquired (as a percent) | 24.75% | 24.75% | ||||||||||||||||||||
Noncontrolling interest purchase | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | $ 223 | |||||||||||||||||||||
Ownership percentage | 100% | 100% | ||||||||||||||||||||
Increase (decrease) in additional paid in capital from business combinations | $ 30 | |||||||||||||||||||||
Other | $ 171 | |||||||||||||||||||||
Swedish Match | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Interest acquired (as a percent) | 85.87% | 94.81% | 94.81% | 94.81% | 100% | |||||||||||||||||
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | $ 14,460 | |||||||||||||||||||||
Other acquisitions, net of acquired cash (Note 3) | 13,976 | 0 | $ 13,976 | 0 | ||||||||||||||||||
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | $ 1,495 | 883 | ||||||||||||||||||||
Final redemption price (in usd per share) | kr / shares | kr 115.07 | |||||||||||||||||||||
Business combination fair value adjustment to inventories | $ 125 | $ 146 | $ 18 | |||||||||||||||||||
Business combination fair value adjustment to debt | $ (107) | |||||||||||||||||||||
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 | |||||||||||||||||||||
Cash and cash equivalents | $ 484 | 484 | 484 | |||||||||||||||||||
Goodwill (Note 5) | 10,731 | 13,301 | 10,731 | |||||||||||||||||||
Other intangible assets | 7,868 | $ 4,512 | 7,868 | |||||||||||||||||||
Goodwill | (2,570) | |||||||||||||||||||||
Increase (decrease) in other intangible assets | $ 3,356 | |||||||||||||||||||||
Swedish Match | Trademarks | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Finite-lived intangible assets | $ 1,067 | |||||||||||||||||||||
Swedish Match | Developed technology, including patents | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 10 years | |||||||||||||||||||||
Finite-lived intangible assets | $ 113 | |||||||||||||||||||||
Swedish Match | Trademarks | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Trademark acquired | $ 3,133 | |||||||||||||||||||||
Swedish Match | Minimum | Trademarks | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 20 years | |||||||||||||||||||||
Swedish Match | Maximum | Trademarks | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 30 years | |||||||||||||||||||||
PMI and Swedish Match | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Deferred income taxes and tax credits | 430 | $ 321 | ||||||||||||||||||||
Preliminary purchase price allocation associated with business combinations | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Interest acquired (as a percent) | 100% | |||||||||||||||||||||
Other acquisitions, net of acquired cash (Note 3) | $ 28 | |||||||||||||||||||||
Contingent consideration | $ 10 | |||||||||||||||||||||
Contingent payment target period | 2 years | |||||||||||||||||||||
Payment for contingent consideration liability | $ 9 | |||||||||||||||||||||
Fertin Pharma | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Interest acquired (as a percent) | 100% | |||||||||||||||||||||
Payments to acquire Swedish Match AB noncontrolling interests (Note 3) | $ 821 | |||||||||||||||||||||
Net purchase price | 821 | kr 5.2 | ||||||||||||||||||||
Cash and cash equivalents | 24 | |||||||||||||||||||||
Current assets | 69 | |||||||||||||||||||||
Noncurrent assets | 228 | |||||||||||||||||||||
Goodwill (Note 5) | 378 | |||||||||||||||||||||
Other intangible assets | 245 | |||||||||||||||||||||
Other current liabilities | 44 | |||||||||||||||||||||
Noncurrent liabilities | 79 | |||||||||||||||||||||
Fertin Pharma | Cash Consideration | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Net purchase price | 580 | |||||||||||||||||||||
Fertin Pharma | Consideration For Payment To Settle Indebtedness | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Net purchase price | $ 241 | |||||||||||||||||||||
Fertin Pharma | Minimum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 8 years | 8 years | 8 years | |||||||||||||||||||
Fertin Pharma | Maximum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 19 years | 19 years | 19 years | |||||||||||||||||||
Vectura | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Interest acquired (as a percent) | 74.77% | |||||||||||||||||||||
Ownership percentage | 100% | |||||||||||||||||||||
Net purchase price | $ 1,384 | £ 1 | ||||||||||||||||||||
Cash and cash equivalents | 136 | |||||||||||||||||||||
Current assets | 89 | |||||||||||||||||||||
Noncurrent assets | 67 | |||||||||||||||||||||
Goodwill (Note 5) | 780 | |||||||||||||||||||||
Other intangible assets | 486 | |||||||||||||||||||||
Other current liabilities | 100 | |||||||||||||||||||||
Noncurrent liabilities | $ 74 | |||||||||||||||||||||
Business acquisition, share price (in dollars per share) | £ / shares | £ 165 | |||||||||||||||||||||
Goodwill | 190 | |||||||||||||||||||||
Increase (decrease) in other intangible assets | (233) | |||||||||||||||||||||
Decrease in deferred tax liabilities | $ 43 | |||||||||||||||||||||
Vectura | Minimum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 3 years | 3 years | 3 years | |||||||||||||||||||
Vectura | Maximum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful Life | 13 years | 13 years | 13 years |
Acquisitions_ (Swedish Match AB
Acquisitions: (Swedish Match AB) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Nov. 11, 2023 | Dec. 31, 2023 | Nov. 11, 2023 | Dec. 31, 2022 | Nov. 11, 2022 | Dec. 31, 2021 | |
Net assets acquired based on fair values: | ||||||
Goodwill | $ 16,779 | $ 19,655 | $ 6,680 | |||
Measurement Period Adjustments during 2023 | ||||||
Goodwill | $ (2,570) | |||||
Swedish Match | ||||||
Net assets acquired based on fair values: | ||||||
Cash and cash equivalents | $ 484 | $ 484 | $ 484 | |||
Trade receivables | 135 | 135 | 135 | |||
Other receivables | 53 | 53 | 53 | |||
Inventories | 437 | 437 | 444 | |||
Other current assets | 415 | 415 | 524 | |||
Property, plant and equipment | 677 | 677 | 627 | |||
Other intangible assets | 7,868 | 7,868 | 4,512 | |||
Other non-current assets | 216 | 216 | 214 | |||
Current portion of long-term debt | 224 | 224 | 224 | |||
Accounts payable | 120 | 120 | 120 | |||
Other current liabilities | 532 | 532 | 531 | |||
Income taxes | 14 | 14 | 14 | |||
Long-term debt | 1,121 | 1,121 | 1,126 | |||
Deferred income taxes | 1,970 | 1,970 | 1,253 | |||
Other non-current liabilities | 196 | 196 | 187 | |||
Identifiable net assets acquired | 6,108 | 6,108 | 3,538 | |||
Noncontrolling interest | 2,379 | 2,379 | 2,379 | |||
Goodwill | 10,731 | 10,731 | 13,301 | |||
Total consideration transferred | 14,460 | 14,460 | $ 14,460 | |||
Measurement Period Adjustments during 2023 | ||||||
Cash and cash equivalents | 0 | |||||
Trade receivables | 0 | |||||
Other receivables | 0 | |||||
Inventories | (7) | |||||
Other current assets | (109) | |||||
Property, plant and equipment | 50 | |||||
Other intangible assets | 3,356 | |||||
Other non-current assets | 2 | |||||
Current portion of long-term debt | 0 | |||||
Accounts payable | 0 | |||||
Other current liabilities | 1 | |||||
Income taxes | 0 | |||||
Long-term debt | (5) | |||||
Deferred income taxes | 717 | |||||
Other non-current liabilities | 9 | |||||
Identifiable net assets acquired | 2,570 | |||||
Noncontrolling interest | 0 | |||||
Goodwill | (2,570) | |||||
Total consideration transferred | $ 0 | |||||
Swedish Match | Trademarks | ||||||
Measurement Period Adjustments during 2023 | ||||||
Trademark acquired | 3,133 | |||||
Swedish Match | Trademarks | ||||||
Measurement Period Adjustments during 2023 | ||||||
Finite-lived intangible assets | $ 1,067 | |||||
Swedish Match | Trademarks | Minimum | ||||||
Measurement Period Adjustments during 2023 | ||||||
Useful Life | 20 years | |||||
Swedish Match | Trademarks | Maximum | ||||||
Measurement Period Adjustments during 2023 | ||||||
Useful Life | 30 years | |||||
Swedish Match | Developed technology, including patents | ||||||
Measurement Period Adjustments during 2023 | ||||||
Useful Life | 10 years | |||||
Finite-lived intangible assets | $ 113 | |||||
Swedish Match | Customer relationships | ||||||
Measurement Period Adjustments during 2023 | ||||||
Finite-lived intangible assets | $ 3,555 | |||||
Swedish Match | Customer relationships | Minimum | ||||||
Measurement Period Adjustments during 2023 | ||||||
Useful Life | 6 years | |||||
Swedish Match | Customer relationships | Maximum | ||||||
Measurement Period Adjustments during 2023 | ||||||
Useful Life | 15 years |
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 | $ 33,579 | $ 33,488 |
Net earnings attributable to PMI | $ 8,779 | $ 8,484 |
War in Ukraine_ Narrative (Deta
War in Ukraine: Narrative (Details) - USD ($) $ in Millions | Jun. 20, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total assets | $ 65,304 | $ 61,681 | ||
Inventories | 10,774 | 9,886 | ||
Goodwill (Note 5) | 16,779 | $ 19,655 | $ 6,680 | |
Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Asset acquisition, consideration transferred | $ 30 | |||
Ukraine | War In Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total assets | 446 | |||
Receivables | 82 | |||
Inventories | 304 | |||
Russia | War In Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total assets | 2,700 | |||
Receivables | 494 | |||
Inventories | 948 | |||
Property, plant and equipment | 261 | |||
Cash | 773 | |||
Goodwill (Note 5) | 167 | |||
Cumulative foreign currency translation losses | $ 1,182 |
War in Ukraine_ Pretax Charges
War in Ukraine: Pretax Charges (Details) - War In Ukraine - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | $ 53 | $ 151 |
Cost of sales | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 15 | 62 |
Marketing, administration and research costs | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 38 | 89 |
Ukraine | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 53 | 78 |
Ukraine | Cost of sales | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 15 | 42 |
Ukraine | Marketing, administration and research costs | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 38 | 36 |
Russia | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 0 | 73 |
Russia | Cost of sales | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | 0 | 20 |
Russia | Marketing, administration and research costs | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Pre-tax charge related to conflict in Ukraine | $ 0 | $ 53 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net: (Additional Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill (Note 5) | $ 665 | $ 0 | $ 0 | |
Impairment of intangible assets | $ 112 | $ 112 | ||
Non-amortizable intangible assets, currency movements increase (decrease) | 156 | |||
Finite lived intangible asset, currency movements increase (decrease) | 161 | |||
Amortization of intangibles | 497 | |||
Change in accumulated amortization, currency movements | 37 | |||
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | 470 | |||
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 470 | |||
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 470 | |||
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 470 | |||
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | 470 | |||
Swedish Match | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Purchase price allocation adjustments | 1,056 | |||
Preliminary purchase price allocation | 2,300 | |||
In Process Research and Development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 15 | |||
Geographical Segment | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reportable segments | segment | 4 | 6 | ||
Wellness and Healthcare | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill (Note 5) | $ 665 | |||
Developed technology, including patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortizable intangible assets, net | 445 | $ 732 | ||
Developed technology, including patents | Wellness and Healthcare | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortizable intangible assets, net | $ 325 | |||
Cost of sales | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 58 | |||
Marketing, administration and research costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 439 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net: (Movement in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 19,655 | $ 6,680 | |
Changes due to: | |||
Acquisitions | 13,301 | ||
Currency | 359 | (516) | |
Other | 190 | ||
Impairment of goodwill (Note 5) | (665) | 0 | $ 0 |
Measurement period adjustments | (2,570) | ||
Ending balance | 16,779 | 19,655 | 6,680 |
Europe | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,370 | 1,455 | |
Changes due to: | |||
Acquisitions | 0 | ||
Currency | 69 | (85) | |
Other | 0 | ||
Impairment of goodwill (Note 5) | 0 | ||
Measurement period adjustments | 0 | ||
Ending balance | 1,439 | 1,370 | 1,455 |
SSEA, CIS & MEA | |||
Goodwill [Roll Forward] | |||
Beginning balance | 2,869 | 3,143 | |
Changes due to: | |||
Acquisitions | 0 | ||
Currency | 8 | (274) | |
Other | 0 | ||
Impairment of goodwill (Note 5) | 0 | ||
Measurement period adjustments | 0 | ||
Ending balance | 2,877 | 2,869 | 3,143 |
EA, AU & PMI DF | |||
Goodwill [Roll Forward] | |||
Beginning balance | 493 | 540 | |
Changes due to: | |||
Acquisitions | 0 | ||
Currency | (1) | (47) | |
Other | 0 | ||
Impairment of goodwill (Note 5) | 0 | ||
Measurement period adjustments | 0 | ||
Ending balance | 492 | 493 | 540 |
Americas | |||
Goodwill [Roll Forward] | |||
Beginning balance | 615 | 611 | |
Changes due to: | |||
Acquisitions | 0 | ||
Currency | 89 | 4 | |
Other | 0 | ||
Impairment of goodwill (Note 5) | 0 | ||
Measurement period adjustments | 0 | ||
Ending balance | 704 | 615 | 611 |
Swedish Match | |||
Goodwill [Roll Forward] | |||
Beginning balance | 13,296 | 0 | |
Changes due to: | |||
Acquisitions | 13,301 | ||
Currency | 151 | (5) | |
Other | 0 | ||
Impairment of goodwill (Note 5) | 0 | ||
Measurement period adjustments | (2,570) | ||
Ending balance | 10,877 | 13,296 | 0 |
Wellness and Healthcare | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,012 | 931 | |
Changes due to: | |||
Acquisitions | 0 | ||
Currency | 43 | (109) | |
Other | 190 | ||
Impairment of goodwill (Note 5) | (665) | ||
Measurement period adjustments | 0 | ||
Ending balance | $ 390 | $ 1,012 | $ 931 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net: (Other Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 4,543 | $ 3,346 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | 1,563 | 1,029 |
Total other intangible assets, gross | 11,427 | 7,761 |
Total other intangible assets, net | $ 9,864 | 6,732 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life | 16 years | |
Gross Carrying Amount | $ 2,267 | 2,050 |
Accumulated Amortization | 784 | 674 |
Amortizable intangible assets, net | $ 1,483 | 1,376 |
Developed technology, including patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life | 7 years | |
Gross Carrying Amount | $ 774 | 975 |
Accumulated Amortization | 329 | 243 |
Amortizable intangible assets, net | $ 445 | 732 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life | 12 years | |
Gross Carrying Amount | $ 3,843 | 1,390 |
Accumulated Amortization | 450 | 112 |
Amortizable intangible assets, net | $ 3,393 | $ 1,278 |
Related Parties - Equity Inve_3
Related Parties - Equity Investments and Other: (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2023 | Mar. 22, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 1,309 | $ 1,000 | ||
Difference between equity method investment carrying value and book value | 907 | 750 | ||
Dividends from unconsolidated subsidiaries | 57 | 9 | ||
Other equity securities, unrealized pre-tax gain (loss) | 49 | 43 | ||
Other equity securities, unrealized gain (loss), net of tax | 38 | 33 | ||
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 | 31 | 35 | ||
Level 1 | Fair Value | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity securities, noncurrent | $ 375 | $ 326 | ||
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 | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 385 | |||
Ownership interest (as a percent) | 23% | |||
Cumulative foreign currency translation losses | $ 561 | |||
EITA | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 49% | |||
STAEM | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 25% | |||
STAEM | EITA | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 51% | |||
STAEM | Management Et Developpement Des Actifs Et Des Ressources Holding (MADAR Holding) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 49% | |||
UTC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 25% | |||
UTC | EIH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 38% | |||
RBH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity securities | $ 3,280 |
Related Parties - Equity Inve_4
Related Parties - Equity Investments and Other: (Balance Sheet and Earnings Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Net revenues 1 & 2 (Notes 6 & 13) | [1],[2] | $ 35,174 | $ 31,762 | $ 31,405 |
Expenses | 186 | 119 | 69 | |
trade receivables | [3] | 3,461 | 3,850 | |
Payables | 4,143 | 4,076 | ||
Related Party | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net revenues 1 & 2 (Notes 6 & 13) | 3,553 | 3,658 | 3,330 | |
trade receivables | 710 | 688 | ||
Payables | 18 | 31 | ||
Megapolis | Related Party | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net revenues 1 & 2 (Notes 6 & 13) | 2,267 | 2,485 | 2,207 | |
trade receivables | 474 | 478 | ||
Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Expenses | 186 | 119 | 69 | |
Other | Related Party | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net revenues 1 & 2 (Notes 6 & 13) | 1,286 | 1,173 | $ 1,123 | |
trade receivables | 236 | 210 | ||
Payables | $ 18 | $ 31 | ||
[1] (2) Net of excise tax on products of $49,404 million, $48,958 million and $50,818 million for the years ended December 31, 2023, 2022 and 2021, respectively (1) Includes net revenues from related parties of $3,553 million, $3,658 million and $3,330 million for the years ended December 31, 2023, 2022 and 2021, respectively (1) Includes trade receivables from related parties of $710 million and $688 million as of December 31, 2023, and 2022, respectively. For further details, see Note 6. Related Parties - Equity Investments and Other. |
Product Warranty_ Narrative (De
Product Warranty: Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Standard product warranty term | 12 months |
Product Warranty_ Table (Detail
Product Warranty: Table (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 104 | $ 113 |
Changes due to: | ||
Warranties issued | 60 | 107 |
Settlements | (83) | (114) |
Currency/Other | (1) | (2) |
Balance at end of period | $ 80 | $ 104 |
Indebtedness_ (Short-Term Borro
Indebtedness: (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 1,968 | $ 5,637 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 1,685 | $ 912 |
Average Year-End Rate | 5.60% | 4.40% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 283 | $ 295 |
Average Year-End Rate | 8.90% | 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 Year-End Rate | 0% | 4.90% |
Indebtedness_ (Long-Term Debt)
Indebtedness: (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 45,941 | $ 37,486 |
Less current portion of long-term debt | 4,698 | 2,611 |
Long-term debt | 41,243 | 34,875 |
Finance leases | $ 53 | 54 |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | ||
Debt Instrument [Line Items] | ||
Average interest rate | 4.446% | |
Total long-term debt | $ 30,272 | 22,596 |
Foreign Currency Obligations | Euro Notes Payable | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.877% | |
Total long-term debt | $ 8,526 | 8,116 |
Foreign Currency Obligations | Swiss Franc Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate | 1.625% | |
Total long-term debt | $ 299 | 378 |
Foreign Currency Obligations | Euro Bank Loan | ||
Debt Instrument [Line Items] | ||
Average interest rate | 4.453% | |
Total long-term debt | $ 6,121 | 5,850 |
Foreign Currency Obligations | Swedish Krona Notes | ||
Debt Instrument [Line Items] | ||
Average interest rate | 2.016% | |
Total long-term debt | $ 236 | 343 |
Foreign Currency Obligations | Other | ||
Debt Instrument [Line Items] | ||
Average interest rate | 6.027% | |
Total long-term debt | $ 487 | $ 203 |
Minimum | U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 0.875% | |
Minimum | Foreign Currency Obligations | Euro Notes Payable | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 0.125% | |
Minimum | Foreign Currency Obligations | Swedish Krona Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 1.395% | |
Maximum | U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 6.375% | |
Maximum | Foreign Currency Obligations | Euro Notes Payable | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 3.125% | |
Maximum | Foreign Currency Obligations | Swedish Krona Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated rate (as a percent) | 2.71% |
Indebtedness_ (Fair Value of Ou
Indebtedness: (Fair Value of Outstanding Long-Term Debt, Excluding Finance Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of outstanding long-term debt, excluding finance leases | $ 38,259 | $ 28,919 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of outstanding long-term debt, excluding finance leases | $ 6,687 | $ 6,142 |
Indebtedness_ (Debt Issuances O
Indebtedness: (Debt Issuances Outstanding) (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 CHF (SFr) | Dec. 31, 2023 SEK (kr) |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 2.875% US Dollar Notes Due May 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 900,000,000 | |||
Interest rate | 2.875% | 2.875% | 2.875% | 2.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 3.250% US Dollar Notes Due November 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 3.25% | 3.25% | 3.25% | 3.25% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.125% US Dollar Notes Due November 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,000,000,000 | |||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 1.500% US Dollar Notes Due May 2025 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 1.50% | 1.50% | 1.50% | 1.50% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 3.375% US Dollar Notes Due August 2025 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.000% US Dollar Notes Due November 2025 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 5% | 5% | 5% | 5% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 2.750% US Dollar Notes Due February 2026 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 2.75% | 2.75% | 2.75% | 2.75% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.875% US Dollar Notes Due February 2026 Issued In February 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,250,000,000 | |||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.875% US Dollar Notes Due February 2026 Issued In May 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 450,000,000 | |||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 0.875% US Dollar Notes Due May 2026 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 0.875% | 0.875% | 0.875% | 0.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 3.125% US Dollar Notes Due August 2027 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 500,000,000 | |||
Interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.125% US Dollar Notes Due November 2027 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,500,000,000 | |||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.875% US Dollar Notes Due February 2028 Issued In February 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,000,000,000 | |||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.875% US Dollar Notes Due February 2028 Issued In May 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 550,000,000 | |||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 3.125% US Dollar Notes Due March 2028 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 500,000,000 | |||
Interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.000% US Dollar Notes Due May 2028 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 50,000,000 | |||
Interest rate | 4% | 4% | 4% | 4% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.250% US Dollar Notes Due September 2028 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 650,000,000 | |||
Interest rate | 5.25% | 5.25% | 5.25% | 5.25% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 3.375% US Dollar Notes Due August 2029 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.625% US Dollar Notes Due November 2029 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,250,000,000 | |||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.125% US Dollar Notes Due February 2030, Issued February 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,500,000,000 | |||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.125% US Dollar Notes Due February 2030, Issued May 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 700,000,000 | |||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 2.100% US Dollar Notes Due May 2030 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 2.10% | 2.10% | 2.10% | 2.10% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.500% US Dollar Notes Due September 2030 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 700,000,000 | |||
Interest rate | 5.50% | 5.50% | 5.50% | 5.50% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 1.750% US Dollar Notes Due November 2030 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 1.75% | 1.75% | 1.75% | 1.75% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.750% US Dollar Notes Due November 2032 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,500,000,000 | |||
Interest rate | 5.75% | 5.75% | 5.75% | 5.75% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.375% US Dollar Notes Due February 2033, Issued February 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,500,000,000 | |||
Interest rate | 5.375% | 5.375% | 5.375% | 5.375% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.375% US Dollar Notes Due February 2033, Issued May 2023 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 5.375% | 5.375% | 5.375% | 5.375% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 5.625% US Dollar Notes Due September 2033 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,000,000,000 | |||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 6.375% US Dollar Notes Due May 2038 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,500,000,000 | |||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.375% US Dollar Notes Due November 2041 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 4.375% | 4.375% | 4.375% | 4.375% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.500% US Dollar Notes Due March 2042 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 700,000,000 | |||
Interest rate | 4.50% | 4.50% | 4.50% | 4.50% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 3.875% US Dollar Notes Due August 2042 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 3.875% | 3.875% | 3.875% | 3.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.125% US Dollar Notes Due March 2043 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 850,000,000 | |||
Interest rate | 4.125% | 4.125% | 4.125% | 4.125% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.875% US Dollar Notes Due November 2043 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.250% US Dollar Notes Due November 2044 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 750,000,000 | |||
Interest rate | 4.25% | 4.25% | 4.25% | 4.25% |
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition | 4.250% US Dollar Notes Due November 2044 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 500,000,000 | |||
Interest rate | 4.25% | 4.25% | 4.25% | 4.25% |
Foreign Currency Obligations | 2.875% Euro Notes Due May 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 761,000,000 | € 600,000,000 | ||
Interest rate | 2.875% | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations | 0.875% Euro Notes Due September 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 308,000,000 | € 300,000,000 | ||
Interest rate | 0.875% | 0.875% | 0.875% | 0.875% |
Foreign Currency Obligations | 0.625% Euro Notes Due November 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 582,000,000 | € 500,000,000 | ||
Interest rate | 0.625% | 0.625% | 0.625% | 0.625% |
Foreign Currency Obligations | 2.750% Euro Notes Due March 2025 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 972,000,000 | € 750,000,000 | ||
Interest rate | 2.75% | 2.75% | 2.75% | 2.75% |
Foreign Currency Obligations | 1.200% Euro Notes Due November 2025 | Component One | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 205,000,000 | € 200,000,000 | ||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% |
Foreign Currency Obligations | 1.200% Euro Notes Due November 2025 | Component Two | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 51,000,000 | € 50,000,000 | ||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% |
Foreign Currency Obligations | 1.200% Euro Notes Due November 2025 | Component Three | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 51,000,000 | € 50,000,000 | ||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% |
Foreign Currency Obligations | 2.875% Euro Notes Due March 2026 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,372,000,000 | € 1,000,000,000 | ||
Interest rate | 2.875% | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations | 0.125% Euro Notes Due August 2026 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 557,000,000 | € 500,000,000 | ||
Interest rate | 0.125% | 0.125% | 0.125% | 0.125% |
Foreign Currency Obligations | 0.875% Euro Notes Due February 2027 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 308,000,000 | € 300,000,000 | ||
Interest rate | 0.875% | 0.875% | 0.875% | 0.875% |
Foreign Currency Obligations | 2.875% Euro Notes Due May 2029 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 697,000,000 | € 500,000,000 | ||
Interest rate | 2.875% | 2.875% | 2.875% | 2.875% |
Foreign Currency Obligations | 0.800% Euro Notes Due August 2031 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 835,000,000 | € 750,000,000 | ||
Interest rate | 0.80% | 0.80% | 0.80% | 0.80% |
Foreign Currency Obligations | 3.125% Euro Notes Due June 2033 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 648,000,000 | € 500,000,000 | ||
Interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
Foreign Currency Obligations | 2.000% Euro Notes Due May 2036 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 578,000,000 | € 500,000,000 | ||
Interest rate | 2% | 2% | 2% | 2% |
Foreign Currency Obligations | 1.875% Euro Notes Due November 2037 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 582,000,000 | € 500,000,000 | ||
Interest rate | 1.875% | 1.875% | 1.875% | 1.875% |
Foreign Currency Obligations | 1.450% Euro Notes Due August 2039 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 835,000,000 | € 750,000,000 | ||
Interest rate | 1.45% | 1.45% | 1.45% | 1.45% |
Foreign Currency Obligations | 1.625% Swiss Franc Notes Due May 2024 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 283,000,000 | SFr 250,000,000 | ||
Interest rate | 1.625% | 1.625% | 1.625% | 1.625% |
Foreign Currency Obligations | 2.710% Swedish Krona Due January 2026 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 95,000,000 | kr 1,000,000,000 | ||
Interest rate | 2.71% | 2.71% | 2.71% | 2.71% |
Foreign Currency Obligations | 1.395% Swedish Krona Note Due February 2026 | Component One | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 67,000,000 | kr 700,000,000 | ||
Interest rate | 1.395% | 1.395% | 1.395% | 1.395% |
Foreign Currency Obligations | 1.395% Swedish Krona Note Due February 2026 | Component Two | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 10,000,000 | kr 100,000,000 | ||
Interest rate | 1.395% | 1.395% | 1.395% | 1.395% |
Foreign Currency Obligations | 1.395% Swedish Krona Note Due February 2026 | Component Three | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 19,000,000 | kr 200,000,000 | ||
Interest rate | 1.395% | 1.395% | 1.395% | 1.395% |
Foreign Currency Obligations | 1.395% Swedish Krona Note Due February 2026 | Component Four | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 19,000,000 | kr 200,000,000 | ||
Interest rate | 1.395% | 1.395% | 1.395% | 1.395% |
Foreign Currency Obligations | 2.190% Swedish Krona Due April 2029 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 29,000,000 | kr 300,000,000 | ||
Interest rate | 2.19% | 2.19% | 2.19% | 2.19% |
Indebtedness_ (Narrative) (Deta
Indebtedness: (Narrative) (Details) | 12 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 ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Nov. 11, 2022 | Jun. 23, 2022 EUR (€) | |
Debt Instrument [Line Items] | |||||||||||||||
Committed credit facilities, maximum borrowing capacity | $ 6,300,000,000 | ||||||||||||||
Borrowings under credit facilities related to Swedish Match AB acquisition | 0 | $ 13,920,000,000 | $ 0 | ||||||||||||
Repayments under credit facilities related to Swedish Match AB acquisition | 4,430,000,000 | 4,000,000,000 | $ 0 | ||||||||||||
Term loan | 45,941,000,000 | 37,486,000,000 | |||||||||||||
Borrowings from line of credit | 0 | ||||||||||||||
Short-term borrowings (Note 8) | 1,968,000,000 | $ 5,637,000,000 | |||||||||||||
Swedish Match | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest acquired (as a percent) | 100% | 94.81% | 94.81% | 85.87% | |||||||||||
Bank loans | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Short-term borrowings (Note 8) | 283,000,000 | $ 295,000,000 | |||||||||||||
Short-Term Credit Arrangement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Committed credit facilities, maximum borrowing capacity | 2,700,000,000 | 1,900,000,000 | |||||||||||||
Senior Unsecured Bridge Facility | Swedish Match | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt term | 364 days | ||||||||||||||
Committed credit facilities, maximum borrowing capacity | $ 11,000,000,000 | $ 17,000,000,000 | |||||||||||||
Borrowings under credit facilities related to Swedish Match AB acquisition | $ 8,400,000,000 | $ 500,000,000 | $ 7,900,000,000 | ||||||||||||
Repayments under credit facilities related to Swedish Match AB acquisition | $ 4,400,000,000 | $ 4,000,000,000 | |||||||||||||
Senior Unsecured Term Loan | Swedish Match | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Committed credit facilities, maximum borrowing capacity | $ 5,800,000,000 | € 5,500,000,000 | |||||||||||||
Borrowings under credit facilities related to Swedish Match AB acquisition | € | € 5,500,000,000 | ||||||||||||||
Term loan | $ 6,000,000,000 | $ 6,000,000,000 | € 5,500,000,000 | € 5,500,000,000 | |||||||||||
Senior Unsecured Term Loan | Debt Instrument, Redemption, Period One | Swedish Match | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt term | 3 years | ||||||||||||||
Committed credit facilities, maximum borrowing capacity | $ 3,200,000,000 | 3,000,000,000 | |||||||||||||
Borrowings under credit facilities related to Swedish Match AB acquisition | € | 3,000,000,000 | ||||||||||||||
Senior Unsecured Term Loan | Debt Instrument, Redemption, Period Two | Swedish Match | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Committed credit facilities, maximum borrowing capacity | $ 2,600,000,000 | € 2,500,000,000 | |||||||||||||
Borrowings under credit facilities related to Swedish Match AB acquisition | € | € 2,500,000,000 |
Indebtedness_ (Aggregate Maturi
Indebtedness: (Aggregate Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 4,709 | |
2025 | 6,785 | |
2026 | 5,117 | |
2027 | 5,141 | |
2028 | 2,771 | |
2029-2033 | 13,312 | |
2034-2038 | 2,613 | |
Thereafter | 5,885 | |
Long-term debt, gross | 46,333 | |
Debt discounts and fair value adjustments | (392) | |
Total long-term debt | $ 45,941 | $ 37,486 |
Indebtedness_ (Credit Facilitie
Indebtedness: (Credit Facilities) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 24, 2024 | Sep. 20, 2022 | Jan. 28, 2022 | |
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | $ 6,300,000,000 | |||
Three Hundred Sixty-Four Day Revolving Credit Expiring January 31, 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 364 days | |||
Multi-year Revolving Credit Facility, Expiring February 10, 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | $ 2,000,000,000 | |||
Multi-year Revolving Credit Facility, Expiring February 10, 2027 | ||||
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | $ 1,900,000,000 | |||
Multi-year revolving credit, expiring September 29, 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | 2,500,000,000 | |||
Multi-year Revolving Credit Facility, Expiring September 29, 2027 | ||||
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | $ 2,300,000,000 | |||
Three Hundred Sixty-Four Day Revolving Credit Expiring January 30, 2024 | ||||
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | $ 1,800,000,000 | |||
Three Hundred Sixty-Four Day Revolving Credit Expiring January 28, 2025 | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Committed Revolving Credit Facilities | $ 1,700,000,000 |
Capital Stock_ (Schedule of Com
Capital Stock: (Schedule of Common Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | ||
Shares repurchased, beginning of period (in shares) | (559,098,620) | ||
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | |
Shares repurchased, end of period (in shares) | (556,891,800) | (559,098,620) | |
Shares Issued | |||
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares Repurchased | |||
Capital Stock [Roll Forward] | |||
Shares repurchased, beginning of period (in shares) | (559,098,620) | (559,146,338) | (551,942,600) |
Repurchase of shares (in shares) | 0 | (1,966,730) | (8,514,629) |
Issuance of stock awards (in shares) | 2,206,820 | 2,014,448 | 1,310,891 |
Shares repurchased, end of period (in shares) | (556,891,800) | (559,098,620) | (559,146,338) |
Shares Outstanding | |||
Capital Stock [Roll Forward] | |||
Shares outstanding, beginning of period (in shares) | 1,550,217,711 | 1,550,169,993 | 1,557,373,731 |
Repurchase of shares (in shares) | 0 | (1,966,730) | (8,514,629) |
Issuance of stock awards (in shares) | 2,206,820 | 2,014,448 | 1,310,891 |
Shares outstanding, end of period (in shares) | 1,552,424,531 | 1,550,217,711 | 1,550,169,993 |
Capital Stock_ (Narrative) (Det
Capital Stock: (Narrative) (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 12 Months Ended | 36 Months Ended | ||||
May 11, 2022 | Jun. 11, 2021 | Mar. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 11, 2024 | |
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 6,000,000,000 | |||||||
Stock repurchase program, authorized amount | $ 7,000,000,000 | |||||||
Repurchases of common stock | $ 0 | $ 209,000,000 | $ 775,000,000 | |||||
Stock repurchase program, period | 3 years | 3 years | ||||||
Common stock repurchased (in shares) | 2,000,000 | 10,500,000 | ||||||
Common stock repurchased, at cost | $ 199,000,000 | $ 1,000,000,000 | $ 199,000,000 | $ 785,000,000 | ||||
Shares of common stock reserved (in shares) | 30,505,637 | |||||||
Preferred stock shares authorized (in shares) | 250,000,000 | |||||||
Minimum | Forecast | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases of common stock | $ 5,000,000,000 | |||||||
Maximum | Forecast | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases of common stock | $ 7,000,000,000 |
Stock Plans_ (Narrative) (Detai
Stock Plans: (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) year performanceMetric shares | May 31, 2022 shares | Dec. 31, 2021 | May 31, 2017 shares | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 160 | |||
Weighted-average recognition period | 17 months | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 39 | |||
Weighted-average recognition period | 17 months | |||
Performance period | 3 years | |||
Absolute basis | 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% | |||
Operational sustainability weight (as a percentage) | 10% | |||
Performance against specific measures of transformation | 30% | |||
Number of performance metrics used to determine the percentage of PSU's that will vest | performanceMetric | 3 | |||
Aggregate weighted performance factor that determines if the target number of PSU's will vest | 100% | |||
Number of shares of common stock issued for each vested PSU (in shares) | 1 | |||
2017 Performance Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated common stock to be awarded under a stock benefit plan, maximum limit (in shares) | 25,000,000 | |||
Shares available for grant under the plan (in shares) | 22,171,530 | |||
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% |
Stock Plans_ (Activity for Rest
Stock Plans: (Activity for Restricted Share Unit Awards) (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Beginning balance (in shares) | 4,519,470 | ||
Granted (in shares) | 1,756,750 | ||
Vested (in shares) | 1,483,356 | 1,603,571 | 1,256,441 |
Forfeited (in shares) | (189,543) | ||
Ending balance (in shares) | 4,603,321 | 4,519,470 | |
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 91.26 | ||
Granted (in dollars per share) | 101.96 | $ 104.75 | $ 82.17 |
Vested (in dollars per share) | 87.30 | ||
Forfeited (in dollars per share) | 96.96 | ||
Ending balance (in dollars per share) | $ 96.38 | $ 91.26 | |
Weighted-average grant date fair value | $ 179 | $ 174 | $ 166 |
Compensation expense for share-based awards | 153 | 135 | 139 |
Grant Date Fair Value | |||
Weighted- Average Grant Date Fair Value Per Share | |||
Grant date fair value of awards vested | 129 | 126 | 121 |
Fair Value | |||
Weighted- Average Grant Date Fair Value Per Share | |||
Grant date fair value of awards vested | $ 148 | $ 174 | $ 111 |
Stock Plans_ (Activity for Perf
Stock Plans: (Activity for Performance Share Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance Shares | |||
Number of Shares | |||
Beginning balance (in shares) | 1,507,190 | ||
Granted (in shares) | 482,360 | ||
Vested (in shares) | 902,232 | 669,960 | 189,839 |
Adjustments for performance achievement (in shares) | 400,992 | ||
Forfeited (in shares) | (61,030) | ||
Ending balance (in shares) | 1,427,280 | 1,507,190 | |
Weighted- Average Grant Date Fair Value Per Share | |||
Compensation expense for share-based awards | $ 59 | $ 48 | $ 71 |
Performance Share Units, Other Performance Factors | |||
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 90.31 | ||
Granted (in dollars per share) | 102.02 | $ 104.92 | $ 81.86 |
Vested (in dollars per share) | 85.99 | ||
Adjustments for performance achievement (in dollars per share) | 85.99 | ||
Forfeited (in dollars per share) | 98.24 | ||
Ending balance (in dollars per share) | $ 95.45 | $ 90.31 | |
Weighted-average grant date fair value | $ 29 | $ 30 | $ 28 |
Performance Share Units, TSR Performance Factor | |||
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 115.45 | ||
Granted (in dollars per share) | 133.54 | $ 143.89 | $ 106.93 |
Vested (in dollars per share) | 98.45 | ||
Adjustments for performance achievement (in dollars per share) | 98.45 | ||
Forfeited (in dollars per share) | 131.39 | ||
Ending balance (in dollars per share) | $ 126.86 | $ 115.45 | |
Weighted-average grant date fair value | $ 26 | $ 27 | $ 25 |
Grant Date Fair Value | Performance Shares | |||
Weighted- Average Grant Date Fair Value Per Share | |||
Grant date fair value of awards vested | 83 | 54 | 21 |
Fair Value | Performance Shares | |||
Weighted- Average Grant Date Fair Value Per Share | |||
Grant date fair value of awards vested | $ 91 | $ 74 | $ 16 |
Stock Plans_ (Assumptions Used)
Stock Plans: (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |||
Risk free interest rate | 4.10% | 1.70% | 0.20% |
Expected volatility | 24.30% | 28.30% | 31.70% |
Earnings per Share_ (Details)
Earnings per Share: (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net earnings attributable to PMI | $ 7,813 | $ 9,048 | $ 9,109 |
Less distributed and undistributed earnings attributable to share-based payment awards | 22 | 24 | 26 |
Net earnings for basic and diluted EPS | 7,791 | 9,024 | 9,083 |
Net earnings for basic and diluted EPS | $ 7,791 | $ 9,024 | $ 9,083 |
Weighted-average shares for basic EPS (in shares) | 1,552,000,000 | 1,550,000,000 | 1,558,000,000 |
Plus contingently issuable performance stock units (PSUs) (in shares) | 1,000,000 | 2,000,000 | 1,000,000 |
Weighted-average shares for diluted EPS (in shares) | 1,553,000,000 | 1,552,000,000 | 1,559,000,000 |
Antidilutive stock options (in shares) | 0 | 0 | 0 |
Income Taxes_ (Schedule of Earn
Income Taxes: (Schedule of Earnings Before Income Taxes and Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Earnings before income taxes | $ 10,450 | $ 11,634 | $ 12,232 |
United States federal and state: | |||
Current | 201 | (75) | 73 |
Deferred | (368) | (139) | 27 |
Total United States | (167) | (214) | 100 |
Outside United States: | |||
Current | 2,468 | 2,553 | 2,616 |
Deferred | 38 | (95) | (45) |
Total outside United States | 2,506 | 2,458 | 2,571 |
Total provision for income taxes | $ 2,339 | $ 2,244 | $ 2,671 |
Income Taxes_ (Narrative) (Deta
Income Taxes: (Narrative) (Details) $ in Millions, Rp in Trillions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 USD ($) | Oct. 31, 2021 IDR (Rp) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Income Taxes [Line Items] | |||||
Earnings before income taxes | $ 10,450 | $ 11,634 | $ 12,232 | ||
Income tax assessment | $ 255 | Rp 4 | |||
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 55 | ||||
Income tax penalties and interest income (expense) recognized | $ 5 | $ 2 | $ (3) | ||
Percentage increase (decrease) in effective income tax rate | 3.10% | (2.50%) | |||
Effective income tax rate (as a percent) | 22.40% | 19.30% | 21.80% | ||
Income tax expense (benefit) | $ 2,339 | $ 2,244 | $ 2,671 | ||
Net operating loss carryforwards | 501 | 384 | |||
Net operating loss carryforwards with unlimited period | 274 | 173 | |||
Valuation allowances | 369 | 378 | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 358 | 141 | |||
TCJA. income tax payable included in income taxes and other liabilities | 300 | 700 | |||
Swedish Match | |||||
Income Taxes [Line Items] | |||||
Income tax expense (benefit) | 203 | ||||
Other tax expense (benefit) | (10) | ||||
Undistributed Earnings of Foreign Subsidiaries | 600 | ||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $ 71 | ||||
Pension Plan | |||||
Income Taxes [Line Items] | |||||
Other tax expense (benefit) | $ (40) | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Foreign and U.S. state jurisdictions have statutes of limitations | 3 years | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Foreign and U.S. state jurisdictions have statutes of limitations | 5 years |
Income Taxes_ (Schedule of Reco
Income Taxes: (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 72 | $ 89 | $ 72 |
Additions based on tax positions related to the current year | 7 | 12 | 12 |
Additions for tax positions of previous years | 1 | 2 | 15 |
Reductions for tax positions of prior years | (23) | (18) | (1) |
Reductions due to lapse of statute of limitations | (3) | (6) | (3) |
Settlements | 0 | (4) | 0 |
Other | 1 | (3) | (6) |
Ending balance | $ 55 | $ 72 | $ 89 |
Income Taxes_ (Schedule of Unre
Income Taxes: (Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 55 | $ 72 | $ 89 | $ 72 |
Accrued interest and penalties | 9 | 13 | 18 | |
Tax credits and other indirect benefits | (1) | (3) | (7) | |
Liability for tax contingencies | $ 63 | $ 82 | $ 100 |
Income Taxes_ (Schedule of Reas
Income Taxes: (Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate And Federal Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (decrease) resulting from: | |||
U.S. federal statutory rate | 21% | 21% | 21% |
Foreign rate differences | (1.00%) | (0.50%) | (0.30%) |
Dividend repatriation cost | 0.80% | 0.70% | 0.60% |
Global intangible low-taxed income | 2% | 1% | 0.80% |
U.S. state taxes | (0.10%) | 0.10% | 0.20% |
Foreign derived intangible income | (0.90%) | (0.80%) | (0.70%) |
Foreign exchange | (1.60%) | (1.70%) | 0% |
Non-deductible goodwill impairment | 1.30% | 0% | 0% |
Other | (0.80%) | (0.50%) | 0.20% |
Effective tax rate | 22.40% | 19.30% | 21.80% |
Russia | |||
Increase (decrease) resulting from: | |||
Unremitted earnings of Russian subsidiaries | 0.017 | 0 | 0 |
Income Taxes_ (Schedule of Temp
Income Taxes: (Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 223 | $ 217 |
Accrued pension costs | 450 | 277 |
Inventory | 27 | 22 |
Accrued liabilities | 191 | 158 |
Net operating loss, tax credit, and other carryforwards | 501 | 384 |
Foreign exchange | 149 | 0 |
Other | 19 | 0 |
Total deferred income tax assets | 1,560 | 1,058 |
Less: valuation allowance | (369) | (378) |
Deferred income tax assets, net of valuation allowance | 1,191 | 680 |
Deferred income tax liabilities: | ||
Intangible assets | (2,136) | (1,485) |
Property, plant and equipment | (218) | (200) |
Unremitted earnings | (358) | (141) |
Foreign exchange | 0 | (175) |
Other | 0 | (32) |
Total deferred income tax liabilities | (2,712) | (2,033) |
Net deferred income tax assets (liabilities) | $ (1,521) | $ (1,353) |
Segment Reporting_ (Segment Dat
Segment Reporting: (Segment Data) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Net revenues | [1],[2] | $ 35,174 | $ 31,762 | $ 31,405 |
Operating income | 11,556 | 12,246 | 12,975 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 35,174 | 31,762 | ||
Operating income | 11,556 | 12,246 | 12,975 | |
Operating Segments | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 13,598 | 12,869 | 13,155 | |
Operating income | 6,012 | 5,802 | 6,409 | |
Operating Segments | SSEA, CIS & MEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 10,629 | 10,467 | 9,858 | |
Operating income | 3,047 | 3,864 | 3,295 | |
Operating Segments | EA, AU & PMI DF | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 6,201 | 5,936 | 6,448 | |
Operating income | 2,481 | 2,424 | 2,836 | |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,944 | 1,903 | 1,843 | |
Operating income | 62 | 436 | 487 | |
Operating Segments | Swedish Match | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,496 | 316 | 0 | |
Operating income | 824 | (22) | 0 | |
Operating Segments | Wellness and Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 306 | 271 | 101 | |
Operating income | (870) | (258) | (52) | |
Operating Segments | Combustible Tobacco Products | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 22,334 | 21,572 | 22,067 | |
Operating Segments | Combustible Tobacco Products | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 8,037 | 7,694 | 8,767 | |
Operating Segments | Combustible Tobacco Products | SSEA, CIS & MEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 9,321 | 9,173 | 8,734 | |
Operating Segments | Combustible Tobacco Products | EA, AU & PMI DF | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,676 | 2,831 | 2,861 | |
Operating Segments | Combustible Tobacco Products | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,869 | 1,804 | 1,706 | |
Operating Segments | Combustible Tobacco Products | Swedish Match | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 431 | 70 | 0 | |
Operating Segments | Smoke-Free Products | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 12,840 | 10,190 | 9,338 | |
Operating Segments | Smoke-Free Products | Total smoke-free products excluding Wellness and Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 12,534 | 9,919 | 9,237 | |
Operating Segments | Smoke-Free Products | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 5,561 | 5,175 | 4,388 | |
Operating Segments | Smoke-Free Products | SSEA, CIS & MEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,308 | 1,294 | 1,124 | |
Operating Segments | Smoke-Free Products | EA, AU & PMI DF | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 3,525 | 3,105 | 3,587 | |
Operating Segments | Smoke-Free Products | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 75 | 99 | 137 | |
Operating Segments | Smoke-Free Products | Swedish Match | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,065 | 246 | 0 | |
Operating Segments | Smoke-Free Products | Wellness and Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 306 | $ 271 | $ 101 | |
[1] (2) Net of excise tax on products of $49,404 million, $48,958 million and $50,818 million for the years ended December 31, 2023, 2022 and 2021, respectively (1) Includes net revenues from related parties of $3,553 million, $3,658 million and $3,330 million for the years ended December 31, 2023, 2022 and 2021, respectively |
Segment Reporting_ (Additional
Segment Reporting: (Additional Information) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | [1],[2] | $ 35,174 | $ 31,762 | $ 31,405 | ||||||
Impairment of goodwill and other intangibles (Note 5) | $ 680 | 112 | 0 | |||||||
Impairment of intangible assets | $ 112 | 112 | ||||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Marketing, administration and research costs 4 (Notes 3, 4, 5, 13, 18 & 20) | |||||||||
Exit costs | $ 109 | 0 | 216 | |||||||
Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 35,174 | 31,762 | ||||||||
Long-lived assets: | $ 9,183 | 9,685 | 9,183 | 8,507 | ||||||
OtiTopic Inc Asset Acquisition | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre-tax charge associated with asset acquisition | 51 | |||||||||
Switzerland | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Long-lived assets: | 1,400 | 1,600 | 1,400 | 1,300 | ||||||
Italy | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Long-lived assets: | 900 | 1,000 | 900 | 900 | ||||||
Indonesia | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Long-lived assets: | 900 | 1,100 | 900 | 900 | ||||||
Japan | Geographic Concentration Risk | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 3,900 | $ 3,900 | $ 4,600 | |||||||
Marketing, administration and research costs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre tax charge on termination | $ 140 | |||||||||
Swedish Match | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Business combination fair value adjustment to inventories | 125 | $ 146 | $ 18 | |||||||
Geographical Segment | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Number of reportable segments | segment | 4 | 6 | ||||||||
EA, AU & PMI DF | Customer Concentration Risk | Customer One | Net Revenues | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Concentration risk percentage | 11% | 12% | 15% | |||||||
EA, AU & PMI DF | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | $ 6,201 | $ 5,936 | $ 6,448 | |||||||
EA, AU & PMI DF | Korea | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Non-cash pre-tax charge | 204 | |||||||||
EA, AU & PMI DF | Marketing, administration and research costs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre tax charge on termination | 27 | |||||||||
SSEA, CIS & MEA | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 10,629 | 10,467 | 9,858 | |||||||
Long-lived assets: | 2,047 | 2,197 | 2,047 | $ 2,181 | ||||||
SSEA, CIS & MEA | Saudi Arabia | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | $ (246) | |||||||||
SSEA, CIS & MEA | Net Revenues | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre tax charge on termination | $ 80 | |||||||||
SSEA, CIS & MEA | Marketing, administration and research costs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre tax charge on termination | 44 | |||||||||
Europe | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre-tax charge related to conflict in Ukraine | $ 53 | $ 151 | ||||||||
Europe | Customer Concentration Risk | Customer One | Net Revenues | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Concentration risk percentage | 12% | 13% | 13% | |||||||
Europe | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | $ 13,598 | $ 12,869 | $ 13,155 | |||||||
Long-lived assets: | 5,179 | 5,697 | 5,179 | 4,918 | ||||||
Europe | Marketing, administration and research costs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre tax charge on termination | 62 | |||||||||
Americas | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net revenues | 1,944 | 1,903 | 1,843 | |||||||
Long-lived assets: | $ 1,282 | 1,310 | $ 1,282 | $ 666 | ||||||
Americas | Marketing, administration and research costs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pre tax charge on termination | $ 7 | |||||||||
[1] (2) Net of excise tax on products of $49,404 million, $48,958 million and $50,818 million for the years ended December 31, 2023, 2022 and 2021, respectively (1) Includes net revenues from related parties of $3,553 million, $3,658 million and $3,330 million for the years ended December 31, 2023, 2022 and 2021, respectively |
Segment Reporting_ (Other Expen
Segment Reporting: (Other Expenses By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | $ 1,398 | $ 1,077 | $ 998 |
Capital expenditures: | 1,321 | 1,077 | 748 |
Operating Segments | Europe | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 333 | 377 | 371 |
Capital expenditures: | 778 | 642 | 481 |
Operating Segments | SSEA, CIS & MEA | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 309 | 340 | 354 |
Capital expenditures: | 287 | 258 | 149 |
Operating Segments | EA, AU & PMI DF | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 148 | 167 | 168 |
Capital expenditures: | 38 | 25 | 36 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 77 | 74 | 71 |
Capital expenditures: | 57 | 92 | 54 |
Operating Segments | Swedish Match | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 84 | 85 | 34 |
Capital expenditures: | 127 | 15 | 0 |
Operating Segments | Wellness and Healthcare | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense | 447 | 34 | 0 |
Capital expenditures: | $ 34 | $ 45 | $ 28 |
Segment Reporting_ (Long-Lived
Segment Reporting: (Long-Lived Assets By Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | |||
Financial instruments | $ 701 | $ 456 | $ 210 |
Total property, plant and equipment, net and Other assets | 13,163 | 10,641 | 8,717 |
Altria Group | |||
Segment Reporting Information [Line Items] | |||
Altria Group, Inc. agreement | 2,777 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets: | 9,685 | 9,183 | 8,507 |
Operating Segments | Altria Group | |||
Segment Reporting Information [Line Items] | |||
Altria Group, Inc. agreement | 1,002 | 0 | |
Operating Segments | Europe | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets: | 5,697 | 5,179 | 4,918 |
Operating Segments | SSEA, CIS & MEA | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets: | 2,197 | 2,047 | 2,181 |
Operating Segments | East Asia and Australia | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets: | 481 | 675 | 742 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets: | $ 1,310 | $ 1,282 | $ 666 |
Benefit Plans_ (Pension and Oth
Benefit Plans: (Pension and Other Employee Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 45 | $ 24 | $ 115 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | (84) | (93) | (1) |
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | 117 | 107 | 108 |
Postretirement Benefit Costs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 12 | $ 10 | $ 8 |
Benefit Plans_ (Obligations and
Benefit Plans: (Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | $ 3 | ||
Employer contributions, net of refunds | (21) | $ 3 | $ (269) |
Fair value of plan assets, ending balance | 3 | 3 | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | 8,606 | 10,998 | |
Service cost | 174 | 233 | 291 |
Interest cost | 258 | 78 | 50 |
Benefits paid | (520) | (429) | |
Employee contributions | 145 | 141 | |
Settlement, curtailment and plan amendment | (17) | (17) | |
Actuarial losses (gains) | 1,209 | (2,294) | |
Currency | 763 | (434) | |
Acquisition of Swedish Match | 0 | 316 | |
Other | (51) | 14 | |
Benefit obligation, ending balance | 10,567 | 8,606 | 10,998 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 7,939 | 9,337 | |
Actual return on plan assets | 643 | (1,061) | |
Employer contributions, net of refunds | 21 | (3) | |
Employee contributions | 145 | 141 | |
Benefits paid | (520) | (429) | |
Settlement | (17) | (14) | |
Currency | 639 | (333) | |
Acquisition of Swedish Match | 0 | 303 | |
Other | 1 | (2) | |
Fair value of plan assets, ending balance | 8,851 | 7,939 | 9,337 |
Net benefit liability | (1,716) | (667) | |
Postretirement | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning balance | 229 | 198 | |
Service cost | 4 | 2 | 2 |
Interest cost | 12 | 6 | 5 |
Benefits paid | (13) | (9) | |
Employee contributions | 0 | 0 | |
Settlement, curtailment and plan amendment | 0 | 0 | |
Actuarial losses (gains) | 24 | (46) | |
Currency | (4) | (5) | |
Acquisition of Swedish Match | 0 | 85 | |
Other | (6) | (2) | |
Benefit obligation, ending balance | 246 | 229 | 198 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 3 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions, net of refunds | 13 | 9 | |
Employee contributions | 0 | 0 | |
Benefits paid | (13) | (9) | |
Settlement | 0 | 0 | |
Currency | 0 | 0 | |
Acquisition of Swedish Match | 0 | 3 | |
Other | 0 | 0 | |
Fair value of plan assets, ending balance | 3 | $ 0 | |
Net benefit liability | $ (243) | $ (226) |
Benefit Plans_ (Narrative) (Det
Benefit Plans: (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts charged to expense for defined contribution plans | $ 111 | $ 82 | $ 71 |
Estimated contribution to pension plans | 119 | ||
Net postemployment costs | $ 213 | $ 184 | 228 |
Postemployment weighted-average discount rate | 4.30% | 5.60% | |
Postemployment annual weighted-average turnover rate | 2.80% | 2.90% | |
Postemployment percentage increase in assumed compensation cost | 2.40% | 2.80% | |
Assets related to postemployment cost | $ 33 | $ 30 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 55% | ||
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 45% | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 10,000 | 8,200 | |
Accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 8,800 | 5,800 | |
Accumulated benefit obligations in excess of plan assets, fair value of plan assets | 7,200 | 5,000 | |
Projected benefit obligations in excess of plan assets, project benefit obligation | 9,200 | 6,400 | |
Projected benefit obligations in excess of plan assets, fair value of plan assets | 7,200 | 5,400 | |
Accrued postemployment costs | 10,567 | 8,606 | $ 10,998 |
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued postemployment costs | $ 915 | $ 807 | |
Pension Plan Portfolio | Benefit Obligation | Switzerland | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 67% | 64% | |
Pension Plan Portfolio | Benefit Obligation | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 6% | 7% | |
Pension Plan Portfolio | Fair Value Of Plan Assets | Switzerland | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 62% | 60% | |
Pension Plan Portfolio | Fair Value Of Plan Assets | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 6% | 6% |
Benefit Plans_ (Pension and Pos
Benefit Plans: (Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | $ 294 | $ 410 |
Accrued liabilities — employment costs | (31) | (32) |
Long-term employment costs | (1,979) | (1,045) |
Net benefit liability | (1,716) | (667) |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | ||
Accrued liabilities — employment costs | (12) | (11) |
Long-term employment costs | (231) | (215) |
Net benefit liability | $ (243) | $ (226) |
Benefit Plans_ (Weighted-Averag
Benefit Plans: (Weighted-Average Assumptions to Determine Benefit Obligations) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 2.28% | 3.03% |
Rate of compensation increase (as a percent) | 2.05% | 1.98% |
Interest crediting rate (as a percent) | 2.99% | 2.97% |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 5.19% | 5.89% |
Heath care cost trend rate assumed for next year (as a percent) | 6.54% | 6.14% |
Ultimate trend rate (as a percent) | 4.49% | 4.78% |
Benefit Plans_ (Components of N
Benefit Plans: (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 174 | $ 233 | $ 291 |
Interest cost | 258 | 78 | 50 |
Expected return on plan assets | (365) | (352) | (371) |
Amortization: | |||
Net losses | 18 | 181 | 314 |
Prior service cost (credit) | (2) | (2) | 1 |
Net transition obligation | 0 | 0 | 0 |
Settlement and curtailment | 7 | 2 | 5 |
Net periodic pension and postretirement costs | 90 | 140 | 290 |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 2 | 2 |
Interest cost | 12 | 6 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization: | |||
Net losses | (1) | 2 | 3 |
Prior service cost (credit) | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | 0 |
Settlement and curtailment | 1 | 2 | 0 |
Net periodic pension and postretirement costs | $ 16 | $ 12 | $ 10 |
Benefit Plans_ (Net Pension and
Benefit Plans: (Net Pension and Postretirement Cost Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost (as a percent) | 3.27% | 1.03% | 0.72% |
Discount rate - interest cost (as a percent) | 3.03% | 0.71% | 0.44% |
Expected rate of return on plan assets (as a percent) | 4.42% | 4.17% | 4.43% |
Rate of compensation increase (as a percent) | 1.98% | 1.77% | 1.79% |
Interest crediting rate (as a percent) | 2.97% | 3.15% | 3.20% |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost (as a percent) | 5.89% | 3.08% | 2.84% |
Discount rate - interest cost (as a percent) | 5.89% | 3.08% | 2.84% |
Health care cost trend rate (as a percent) | 6.14% | 6.27% | 6.21% |
Benefit Plans_ (Fair Value of P
Benefit Plans: (Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 3 | $ 3 | |
U S and International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 57% | 57% | |
U S and International Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 15% | 15% | |
Investment Funds Holding Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 15% | 16% | |
Real Estate and Other Money Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 13% | 12% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 8,851 | $ 7,939 | $ 9,337 |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 8,579 | 7,674 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 117 | 79 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 158 | 140 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | International securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 569 | 521 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 7,123 | 6,419 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 255 | 178 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 320 | 302 | |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 37 | 35 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 6,713 | 6,029 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 117 | 79 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 158 | 140 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | International securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 569 | 521 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 5,366 | 4,870 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 183 | 117 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 320 | 302 | |
Pension Plan | Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,834 | 1,613 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | International securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,757 | 1,549 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 72 | 61 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 5 | 3 | |
Pension Plan | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 32 | 32 | |
Pension Plan | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | U.S. securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | International securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension Plan | Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 32 | 32 | |
Pension Plan | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 272 | $ 265 |
Benefit Plans_ (Estimated Futur
Benefit Plans: (Estimated Future Benefit Payments From Pension Plans) (Details) - Pension Plan $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 417 |
2025 | 430 |
2026 | 428 |
2027 | 438 |
2028 | 457 |
2029 - 2033 | $ 2,490 |
Benefit Plans_ (Amounts Recorde
Benefit Plans: (Amounts Recorded in Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net (losses) gains | $ (3,131) | $ (2,204) | $ (3,443) |
Prior service (cost) credit | 57 | 50 | 50 |
Net transition (obligation) asset | (3) | (3) | (3) |
Deferred income taxes | 488 | 335 | 516 |
Losses to be amortized | (2,589) | (1,822) | (2,880) |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (losses) gains | (2,325) | (1,437) | (2,495) |
Prior service (cost) credit | 77 | 70 | 71 |
Net transition (obligation) asset | (3) | (3) | (3) |
Deferred income taxes | 283 | 138 | 278 |
Losses to be amortized | (1,968) | (1,232) | (2,149) |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (losses) gains | (36) | (14) | (64) |
Prior service (cost) credit | 1 | 1 | 1 |
Net transition (obligation) asset | 0 | 0 | 0 |
Deferred income taxes | 19 | 14 | 24 |
Losses to be amortized | (16) | 1 | (39) |
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (losses) gains | (770) | (753) | (884) |
Prior service (cost) credit | (21) | (21) | (22) |
Net transition (obligation) asset | 0 | 0 | 0 |
Deferred income taxes | 186 | 183 | 214 |
Losses to be amortized | $ (605) | $ (591) | $ (692) |
Benefit Plans_ (Movements in Ot
Benefit Plans: (Movements in Other Comprehensive Earnings (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization: | |||
Net losses (gains) | $ 96 | $ 266 | $ 383 |
Prior service cost (credit) | 7 | (4) | 6 |
Net transition obligation | 0 | ||
Other income/expense: | |||
Net losses (gains) | 12 | 3 | 6 |
Prior service cost (credit) | 0 | 1 | |
Deferred income taxes | (28) | (49) | (72) |
Amortization of net losses, prior service costs and net transition costs | 87 | 217 | 323 |
Other movements during the year: | |||
Deferred income taxes | 182 | (132) | (210) |
Net gains (losses) and prior service costs | (861) | 843 | 1,055 |
Total accumulated other comprehensive losses | |||
Other movements during the year: | |||
Net (losses) gains | (1,035) | 970 | 1,218 |
Prior service (cost) credit | 0 | 3 | 42 |
Deferred income taxes | 181 | (132) | (210) |
Net gains (losses) and prior service costs | (854) | 841 | 1,050 |
Total movements in other comprehensive earnings (losses) | (767) | 1,058 | 1,373 |
Pension Plan | |||
Amortization: | |||
Net losses (gains) | 19 | 178 | 294 |
Prior service cost (credit) | 7 | (4) | 7 |
Net transition obligation | 0 | ||
Other income/expense: | |||
Net losses (gains) | 11 | 2 | 5 |
Prior service cost (credit) | 0 | 0 | 0 |
Deferred income taxes | (9) | (28) | (51) |
Amortization of net losses, prior service costs and net transition costs | 28 | 148 | 255 |
Other movements during the year: | |||
Net (losses) gains | (918) | 878 | 1,353 |
Prior service (cost) credit | 0 | 3 | 42 |
Deferred income taxes | 154 | (112) | (241) |
Net gains (losses) and prior service costs | (764) | 769 | 1,154 |
Total movements in other comprehensive earnings (losses) | (736) | 917 | 1,409 |
Postretirement | |||
Amortization: | |||
Net losses (gains) | 1 | 3 | 4 |
Prior service cost (credit) | 0 | 0 | (1) |
Net transition obligation | 0 | ||
Other income/expense: | |||
Net losses (gains) | 1 | 1 | 1 |
Prior service cost (credit) | 0 | 0 | 0 |
Deferred income taxes | (1) | (1) | (1) |
Amortization of net losses, prior service costs and net transition costs | 1 | 3 | 3 |
Other movements during the year: | |||
Net (losses) gains | (24) | 46 | (5) |
Prior service (cost) credit | 0 | 0 | 0 |
Deferred income taxes | 6 | (9) | 1 |
Net gains (losses) and prior service costs | (18) | 37 | (4) |
Total movements in other comprehensive earnings (losses) | (17) | 40 | (1) |
Postemployment Benefit Plans | |||
Amortization: | |||
Net losses (gains) | 76 | 85 | 85 |
Prior service cost (credit) | 0 | 0 | 0 |
Net transition obligation | 0 | ||
Other income/expense: | |||
Net losses (gains) | 0 | 0 | 0 |
Prior service cost (credit) | 0 | 1 | 0 |
Deferred income taxes | (18) | (20) | (20) |
Amortization of net losses, prior service costs and net transition costs | 58 | 66 | 65 |
Other movements during the year: | |||
Net (losses) gains | (93) | 46 | (130) |
Prior service (cost) credit | 0 | 0 | 0 |
Deferred income taxes | 21 | (11) | 30 |
Net gains (losses) and prior service costs | (72) | 35 | (100) |
Total movements in other comprehensive earnings (losses) | $ (14) | $ 101 | $ (35) |
Additional Information_ (Detail
Additional Information: (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional Information [Abstract] | |||
Depreciation expense | $ 901 | $ 918 | $ 902 |
Research and development expense | 709 | 642 | 617 |
Advertising expense | 965 | 777 | 807 |
Foreign currency net transaction (gains)/losses | 305 | 199 | 45 |
Interest expense | 1,526 | 768 | 737 |
Interest income | (465) | (180) | (109) |
Interest expense, net | $ 1,061 | $ 588 | $ 628 |
Financial Instruments_ (Narrati
Financial Instruments: (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Cumulative fair value gain (loss) of hedged liability | $ 60 | ||
Derivative gains to be reclassified to earnings | 78 | ||
Fair Value Hedging | |||
Derivative [Line Items] | |||
Carrying amounts of debt hedged | 937 | ||
Net Investment Hedging | Foreign Debt | |||
Derivative [Line Items] | |||
Losses within currency translation | $ 48 | $ 521 | $ 278 |
Financial Instruments_ (Notiona
Financial Instruments: (Notional Amounts of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount | $ 43,265 | $ 40,401 |
Derivative contracts designated as hedging instruments: | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 21,987 | 17,627 |
Derivative contracts designated as hedging instruments: | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | 3,600 | 1,019 |
Derivative contracts designated as hedging instruments: | Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount | 20 | 0 |
Foreign exchange contracts | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 17,658 | $ 21,755 |
Financial Instruments_ (Fair Va
Financial Instruments: (Fair Value of Foreign Exchange Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 584 | $ 873 |
Gross amounts not offset in the consolidated balance sheet, derivative assets - financial instruments | (374) | (346) |
Gross amounts not offset in the consolidated balance sheet, derivative assets - cash collateral received/pledged | (109) | (341) |
Gross amounts not offset in the consolidated balance sheet, derivative assets, total | 101 | 186 |
Fair value of derivative liabilities | 1,368 | 537 |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities - financial instruments | (374) | (346) |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities - cash collateral received/pledged | (551) | (48) |
Gross amounts not offset in the consolidated balance sheet, derivative liabilities, total | 443 | 143 |
Foreign exchange contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 345 | 376 |
Foreign exchange contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 249 | 126 |
Foreign exchange contracts | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 153 | 341 |
Foreign exchange contracts | Foreign exchange contracts | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 449 | 147 |
Foreign exchange contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 85 | 156 |
Foreign exchange contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 425 | 165 |
Foreign exchange contracts | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Foreign exchange contracts | Foreign exchange contracts | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 143 | 16 |
Interest rate contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1 | 0 |
Interest rate contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 78 | 27 |
Interest rate contracts | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Interest rate contracts | Foreign exchange contracts | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 18 | 56 |
Commodity contracts | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Commodity contracts | Foreign exchange contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 5 | 0 |
Commodity contracts | Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Commodity contracts | Foreign exchange contracts | Income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ (563) | $ 880 | $ 628 |
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net | Interest Income (Expense), Net |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net | Interest Income (Expense), Net |
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | $ 252 | $ 254 | $ 42 |
Cash flow hedges | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts | 195 | 288 | 138 |
Foreign exchange contracts | (788) | 300 | 484 |
Interest expense, net | 268 | 181 | 150 |
Cash flow hedges | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | (20) | 41 | 421 |
Cash flow hedges | Net revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 194 | 233 | 59 |
Cash flow hedges | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 0 | 0 |
Cash flow hedges | Marketing, administration and research costs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 27 | 30 | (10) |
Cash flow hedges | Marketing, administration and research costs | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | (575) | (169) | 215 |
Cash flow hedges | Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (15) | (7) | (6) |
Cash flow hedges | Interest expense, net | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | 301 | 112 | 55 |
Interest rate contracts | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts | 37 | 292 | 6 |
Interest rate contracts | Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 46 | (2) | (1) |
Interest rate contracts | Interest expense, net | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | (14) | (83) | 1 |
Commodity contracts | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts | (7) | 0 | 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 |
Financial Instruments_ (Hedging
Financial Instruments: (Hedging Activity Affect on AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | |||
(Gains) losses transferred to earnings, net of income taxes of $32 in 2023, $35 in 2022 and $7 in 2021 | $ (220) | $ (219) | $ (35) |
Gains (losses) recognized, net of income taxes of $(30) in 2023, $(99) in 2022 and $(20) in 2021 | 195 | 481 | 124 |
Other Comprehensive Income (Loss) | |||
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | |||
Gains (loss), beginning balance | 266 | 4 | (85) |
(Gains) losses transferred to earnings, net of income taxes of $32 in 2023, $35 in 2022 and $7 in 2021 | (220) | (219) | (35) |
Gains (losses) recognized, net of income taxes of $(30) in 2023, $(99) in 2022 and $(20) in 2021 | 195 | 481 | 124 |
Gains (loss), ending balance | $ 241 | $ 266 | $ 4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses: (Components of Accumulated Other Comprehensive Losses, Net Of Taxes) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (9,446) | $ (6,311) | $ (8,208) | $ (10,631) |
Currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (9,467) | (8,003) | (6,701) | |
Pension and other benefits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (2,589) | (1,822) | (2,880) | |
Derivatives accounted for as hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | 241 | 266 | 4 | |
Total accumulated other comprehensive losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (11,815) | $ (9,559) | $ (9,577) | $ (11,181) |
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 ($) | Oct. 30, 2015 USD ($) | Mar. 31, 2019 USD ($) | Dec. 31, 2023 litigationCase | |
Loss Contingencies [Line Items] | ||||||||||
Number of cases decided in favor of PM | 544 | |||||||||
Number of cases decided in favor of plaintiff | 15 | |||||||||
Cases Remaining On Appeal | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of 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 | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | ||||||||
Court-estimated number of members in class | plaintiff | 99,957 | 99,957 | ||||||||
Canada | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 15,500,000 | $ 11,500,000 | ||||||||
Punitive damages awarded | 90 | 67 | ||||||||
Damages awarded, reduced amount | $ 13,500,000 | $ 10,000,000 | ||||||||
Canada | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Judicial Ruling | RBH | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages awarded | $ 2,700,000 | $ 2,000,000 | $ 3,100,000 | $ 2,300,000 | ||||||
Damages allocated to subsidiary (percent) | 20% | 20% | 20% | 20% | ||||||
Punitive damages awarded | $ 30 | $ 22 | ||||||||
Canada | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages awarded that are to be deposited into trust | $ 1,100,000 | $ 813,000 | ||||||||
Payment period for amount to be deposited into trust | 60 days | 60 days | ||||||||
Canada | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | RBH | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount of security ordered to be furnished and paid | $ 226,000 | $ 167,000 | ||||||||
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 | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases | Appellate Ruling | Imperial Tobacco Ltd. | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Motion for security ordered by appeals court | $ 758,000 | $ 561,000 | ||||||||
Canada | Cecilia Letourneau | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | ||||||||
Court-estimated number of members in class | plaintiff | 918,000 | 918,000 | ||||||||
Canada | Cecilia Letourneau | Judicial Ruling | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 131,000 | $ 97,000 | ||||||||
Canada | Cecilia Letourneau | Judicial Ruling | RBH | Smoking and Health Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | $ 46,000 | $ 34,000 | ||||||||
Punitive damages awarded including interest | $ 57,000 | $ 42,000 | ||||||||
Canada | Adams | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiff requirement, minimum number of cigarettes smoked | cigarette | 25,000 | |||||||||
Canada | Suzanne Jacklin | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Plaintiff requirement, minimum number of cigarettes smoked | cigarette | 25,000 |
Contingencies_ (Number of Tobac
Contingencies: (Number of Tobacco Related Cases Pertaining to Combustible Products Pending Against Us and/or Our Subsidiaries or Indemnitees) (Details) - Combustible Products - litigationCase | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Individual Smoking and Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 45 | 40 | 40 |
Smoking and Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 9 | 9 | 9 |
Health Care Cost Recovery Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 17 | 17 | 17 |
Label-Related Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 0 | 0 | 0 |
Individual Label-Related Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 4 | 6 | 3 |
Public Civil Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 1 | 1 | 1 |
Contingencies_ (Verdicts and Po
Contingencies: (Verdicts and Post-Trial Developments) (Details) - Judicial Ruling ₺ 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 | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 15,500,000,000 | $ 11,500,000,000 | ||||||||||||
Punitive damages awarded | 90,000 | 67,000 | ||||||||||||
Awarded compensatory damages that are to be deposited into trust | 1,000,000,000 | 740,000,000 | ||||||||||||
Canada | Smoking and Health Class Actions | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais | RBH | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 2,700,000,000 | $ 2,000,000,000 | $ 3,100,000,000 | $ 2,300,000,000 | ||||||||||
Damages allocated to subsidiary (percent) | 20% | 20% | 20% | 20% | ||||||||||
Punitive damages awarded | $ 30,000 | $ 22,000 | ||||||||||||
Awarded compensatory damages that are to be deposited into trust | $ 200,000,000 | $ 148,000,000 | ||||||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | ||||||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Punitive damages awarded | $ 131,000,000 | $ 97,000,000 | ||||||||||||
Canada | Smoking and Health Class Actions | Cecilia Letourneau | RBH | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Punitive damages awarded | $ 46,000,000 | $ 34,000,000 | ||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||||||||||
Argentina | Smoking And Health Individual Actions | Hugo Lespada | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 133 | $ 110,000 | ||||||||||||
Argentina | Smoking And Health Individual Actions | Claudia Milano | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 181 | $ 150,000 | ||||||||||||
Punitive damages awarded | $ 4,825 | $ 4,000,000 | ||||||||||||
Damages awarded that are to be deposited into trust | $ 7,375 | $ 6,114,428 | ||||||||||||
Damages returned to subsidiary | $ 1,078 | $ 893,428 | ||||||||||||
Turkey | Smoking And Health Individual Actions | Senem Yilmazel | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages awarded | $ 327 | ₺ 10 |
Contingencies_ (Smoking and Hea
Contingencies: (Smoking and Health Litigation) (Details) - Combustible Products - litigationCase | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Individual Smoking and Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 45 | 40 | 40 |
Individual Smoking and Health Cases | Argentina | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 31 | ||
Individual Smoking and Health Cases | Canada | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 2 | ||
Individual Smoking and Health Cases | Chile | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 11 | ||
Individual Smoking and Health Cases | Turkey | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 1 | ||
Smoking and Health Class Actions | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 9 | 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 | Dec. 31, 2023 litigationCase | Dec. 31, 2022 litigationCase | Dec. 31, 2021 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 Company | 17 | 17 | 17 | ||||||
Combustible Products | Brazil | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against Company | 1 | ||||||||
Combustible Products | Canada | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against Company | 10 | ||||||||
Combustible Products | Korea | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against Company | 1 | ||||||||
Combustible Products | Nigeria | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against Company | 5 |
Contingencies_ (Label-Related C
Contingencies: (Label-Related Cases) (Details) - Combustible Products - Individual Label-Related Cases - litigationCase | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | |||
Cases brought against Company | 4 | 6 | 3 |
Italy | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 1 | ||
Chile | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 3 |
Contingencies_ (Public Civil Ac
Contingencies: (Public Civil Actions) (Details) - Combustible Products - Public Civil Actions - litigationCase | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | |||
Cases brought against Company | 1 | 1 | 1 |
Venezuela | |||
Loss Contingencies [Line Items] | |||
Cases brought against Company | 1 |
Contingencies_ (Other Litigatio
Contingencies: (Other Litigation) (Details) ฿ in Millions, $ in Millions, ₩ in Billions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 14, 2023 patent | Jul. 20, 2023 panel | Jul. 13, 2023 patent | May 10, 2023 patent | Dec. 23, 2022 patent | Jul. 21, 2022 patent | Jun. 15, 2022 USD ($) | Jun. 01, 2022 THB (฿) | Jun. 01, 2022 USD ($) | Mar. 30, 2022 patent | Jan. 11, 2022 patent | Dec. 31, 2021 patent product | Sep. 21, 2021 patent | May 14, 2021 patent | Jan. 26, 2017 THB (฿) | Jan. 26, 2017 USD ($) | Jan. 18, 2016 THB (฿) defendant | Jan. 18, 2016 USD ($) defendant | Jul. 31, 2021 patent | Jun. 30, 2021 patent | Oct. 31, 2020 patent | Jun. 30, 2020 USD ($) | Jun. 30, 2020 KRW (₩) | Mar. 31, 2020 THB (฿) | Mar. 31, 2020 USD ($) | Jan. 31, 2020 USD ($) hearing | Jan. 31, 2020 KRW (₩) hearing | Nov. 30, 2019 THB (฿) | Nov. 30, 2019 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2016 KRW (₩) | Mar. 31, 2018 USD ($) | Mar. 31, 2018 KRW (₩) | Mar. 31, 2017 USD ($) | Mar. 31, 2017 KRW (₩) | Mar. 30, 2023 product | Mar. 03, 2020 study | Dec. 31, 2017 lawsuit | |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of class action lawsuits | lawsuit | 3 | |||||||||||||||||||||||||||||||||||||
Number of non-clinical studies | study | 4 | |||||||||||||||||||||||||||||||||||||
Number of patents found infringed | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Number of patents allegedly infringed | 3 | |||||||||||||||||||||||||||||||||||||
Other Litigation | Philip Morris Products S.A. | ||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Damages awarded | $ | $ 10.8 | |||||||||||||||||||||||||||||||||||||
Number of patents infringed upon | 2 | 1 | ||||||||||||||||||||||||||||||||||||
Number of products found to be patent infringement | product | 2 | |||||||||||||||||||||||||||||||||||||
Number of patents not infringed upon | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||
Number of patents allegedly infringed upon | 2 | 2 | 6 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Number of patents not found to be invalid | 1 | |||||||||||||||||||||||||||||||||||||
Number of patents alleged to be invalid | 2 | |||||||||||||||||||||||||||||||||||||
Number of patents allegedly infringed upon, under review | 4 | |||||||||||||||||||||||||||||||||||||
Other Litigation | British American Tobacco plc | ||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of patents allegedly infringed | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Number of products with ongoing royalty | product | 2 | |||||||||||||||||||||||||||||||||||||
Number of patents found not infringed | 1 | |||||||||||||||||||||||||||||||||||||
Number of patents seeking preliminary injunction relief | 1 | |||||||||||||||||||||||||||||||||||||
Other Litigation | PM GmbH And PMPSA | ||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of patents allegedly infringed | 2 | |||||||||||||||||||||||||||||||||||||
Number of patents found not infringed | 1 | |||||||||||||||||||||||||||||||||||||
Other Litigation | Thailand | The Department of Special Investigations of the Government of Thailand | ||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Loss contingency, damages sought, value | ฿ 122 | $ 3.4 | ฿ 19,800 | $ 553 | ||||||||||||||||||||||||||||||||||
Amount of fine imposed by trial court | ฿ 130 | $ 3.6 | ฿ 1,200 | $ 33.5 | ||||||||||||||||||||||||||||||||||
Other Litigation | Thailand | The Department of Special Investigations of the Government of Thailand | Pending Litigation | ||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of defendants | defendant | 7 | 7 | ||||||||||||||||||||||||||||||||||||
Loss contingency, damages sought, value | ฿ 80,800 | $ 2,300 | ||||||||||||||||||||||||||||||||||||
Other Litigation | Korea | The South Korean Board of Audit and Inspection | ||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||||||||||
Amounts paid | $ 75 | ₩ 100 | $ 129 | ₩ 172 | $ 204 | ₩ 272 | ||||||||||||||||||||||||||||||||
Amount of taxes not underpaid as ruled by trial court | $ 164 | ₩ 218 | ||||||||||||||||||||||||||||||||||||
Number of panels | panel | 2 | |||||||||||||||||||||||||||||||||||||
Number of hearings | hearing | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Amount of alleged underpayments not underpaid as ruled by court | $ 40 | ₩ 54 |
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 |
Sale of Accounts Receivable_ (D
Sale of Accounts Receivable: (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) arrangement | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Sale of Accounts Receivable [Abstract] | |||
Accounts Receivable, Arrangement | arrangement | 2 | ||
Accounts receivable sold | $ 13,300 | $ 11,900 | |
Trade receivables sold and derecognized that remain uncollected | 1,600 | 1,000 | $ 900 |
Gain (loss) on sale of accounts receivable | $ 49 | $ 26 | $ 9 |
Asset Impairment and Exit Cos_3
Asset Impairment and Exit Costs: (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 phase | |
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | $ 109 | $ 0 | $ 216 | |||
Impairment of goodwill and other intangibles (Note 5) | 680 | 112 | 0 | |||
Impairment of intangible assets | $ 112 | 112 | ||||
Number of organizational design phases | phase | 2 | |||||
Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | 78 | 57 | ||||
Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | 31 | 0 | ||||
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | $ 0 | $ 159 | ||||
e-Vapor Products Manufacturing Optimization | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | $ 109 | |||||
e-Vapor Products Manufacturing Optimization | Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | 78 | |||||
e-Vapor Products Manufacturing Optimization | Finance Lease Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | 21 | |||||
e-Vapor Products Manufacturing Optimization | Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | $ 31 | |||||
Philip Morris Korea | Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit costs | $ 57 | |||||
Organizational Design Optimization | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | employee | 1,020 | |||||
Cost incurred to date | $ 308 | |||||
Organizational Design Optimization | Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost incurred to date | 8 | |||||
Organizational Design Optimization | Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost incurred to date | $ 300 |
Asset Impairment and Exit Cos_4
Asset Impairment and Exit Costs: (Asset Impairment and Exit Costs by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | $ 109 | $ 0 | $ 216 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 159 | |
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 78 | 57 | |
Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 31 | 0 | |
Europe | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 72 | |
Europe | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 35 | 0 | |
Europe | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 14 | 0 | |
SSEA, CIS & MEA | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 45 | |
SSEA, CIS & MEA | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 25 | 0 | |
SSEA, CIS & MEA | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 9 | 0 | |
EA, AU & PMI DF | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 34 | |
EA, AU & PMI DF | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 15 | 57 | |
EA, AU & PMI DF | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 6 | 0 | |
Americas | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 8 | |
Americas | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 3 | 0 | |
Americas | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 2 | 0 | |
Swedish Match | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 0 | |
Swedish Match | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 0 | |
Swedish Match | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 0 | |
Wellness and Healthcare | Operating Segments | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 0 | |
Wellness and Healthcare | Operating Segments | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | 0 | 0 | |
Wellness and Healthcare | Operating Segments | Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total asset impairment and exit costs | $ 0 | $ 0 |
Asset Impairment and Exit Cos_5
Asset Impairment and Exit Costs: (Movement in Exit Cost Liabilities) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Movement in exit cost liabilities | |
Liability balance, January 1, 2023 | $ 40 |
Charges, net | 78 |
Cash spent | (79) |
Currency/other | (10) |
Liability balance, December 31, 2023 | $ 29 |
Leases_ (Balance Sheet Classifi
Leases: (Balance Sheet Classification of Lease Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Other assets | $ 631 | $ 594 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Accrued liabilities - Other | $ 197 | $ 178 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Income Taxes And Other Liabilities, Noncurrent | Income Taxes And Other Liabilities, Noncurrent |
Income taxes and other liabilities | $ 456 | $ 436 |
Total lease liabilities | $ 653 | $ 614 |
Finance Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Machinery and equipment | Machinery and equipment |
Finance lease, right of use asset | $ 111 | $ 123 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Less current portion of long-term debt | Less current portion of long-term debt |
Finance lease, current liability | $ 30 | $ 34 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt (Note 8) | Long-term debt (Note 8) |
Finance leases, noncurrent | $ 23 | $ 20 |
Finance leases | 53 | 54 |
Machinery and Equipment | ||
Finance Leases | ||
Finance lease, right of use asset | 111 | 123 |
Other assets | ||
Operating Leases | ||
Other assets | $ 631 | $ 594 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 70 years |
Leases_ (Lease Cost) (Details)
Leases: (Lease Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 266 | $ 248 | $ 259 |
Amortization of right-of-use assets | 49 | 83 | 54 |
Interest on lease liabilities | 1 | 1 | 1 |
Short-term lease cost | 59 | 59 | 55 |
Variable lease cost | 28 | 23 | 25 |
Total lease cost | $ 403 | $ 414 | $ 394 |
Leases_ (Maturities of Operatin
Leases: (Maturities of Operating and Finance Lease Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 228 | |
2025 | 159 | |
2026 | 109 | |
2027 | 72 | |
2028 | 45 | |
Thereafter | 163 | |
Total lease payments | 776 | |
Less: Interest | 123 | |
Operating lease liabilities | 653 | $ 614 |
Finance Leases | ||
2024 | 31 | |
2025 | 12 | |
2026 | 6 | |
2027 | 5 | |
2028 | 2 | |
Thereafter | 0 | |
Total lease payments | 56 | |
Less: Interest | 3 | |
Present value of lease liabilities | $ 53 | $ 54 |
Leases_ (Other Lease Informatio
Leases: (Other Lease Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities in operating cash flow | $ 265 | $ 243 | $ 259 |
Cash paid for amounts included in the measurement of lease liabilities in financing cash flows | 27 | 76 | 26 |
Leased assets obtained in exchange for new lease liabilities | 205 | 255 | 64 |
Leased assets obtained in exchange for new lease liabilities | $ 55 | $ 100 | $ 89 |
Weighted-average remaining lease term (years) | 10 years 2 months 12 days | 10 years 3 months 18 days | 8 years 3 months 18 days |
Weighted-average remaining lease term (years) | 2 years 7 months 6 days | 2 years 1 month 6 days | 1 year 8 months 12 days |
Weighted-average discount rate (as a percent) | 5.10% | 3.40% | 3.60% |
Weighted-average discount rate (as a percent) | 4.90% | 4.40% | 5.30% |
Supply Chain Financing_ (Detail
Supply Chain Financing: (Details) - USD ($) $ in Billions | Dec. 31, 2023 | Dec. 31, 2022 |
Supplier Finance Program [Line Items] | ||
Supply chain payment terms | 120 days | |
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Net Cash Provided by (Used in) Operating Activities | Net Cash Provided by (Used in) Operating Activities |
Supply Chain Financing Program | ||
Supplier Finance Program [Line Items] | ||
Supply chain financing, obligation, current | $ 0.9 | $ 1.1 |