Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 28, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'Philip Morris International Inc. | ' | ' |
Entity Central Index Key | '0001413329 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,585,195,173 | ' |
Entity Public Float | ' | ' | $141 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $2,154 | $2,983 |
Receivables (less allowances of $53 in 2013 and $56 in 2012) | 3,853 | 3,589 |
Inventories: | ' | ' |
Leaf tobacco | 3,709 | 3,548 |
Other raw materials | 1,596 | 1,610 |
Finished product | 4,541 | 3,791 |
Total inventory, net | 9,846 | 8,949 |
Deferred income taxes | 502 | 450 |
Other current assets | 497 | 619 |
Total current assets | 16,852 | 16,590 |
Property, plant and equipment, at cost: | ' | ' |
Land and land improvements | 671 | 708 |
Buildings and building equipment | 4,013 | 3,948 |
Machinery and equipment | 8,409 | 8,380 |
Construction in progress | 864 | 843 |
Total property, plant and equipment, at cost | 13,957 | 13,879 |
Less: accumulated depreciation | 7,202 | 7,234 |
Total property, plant and equipment, net | 6,755 | 6,645 |
Goodwill (Note 3) | 8,893 | 9,900 |
Other intangible assets, net (Note 3) | 3,193 | 3,619 |
Investments in unconsolidated subsidiaries (Note 4) | 1,536 | 24 |
Other assets | 939 | 892 |
Total Assets | 38,168 | 37,670 |
LIABILITIES | ' | ' |
Short-term borrowings (Note 7) | 2,400 | 2,419 |
Current portion of long-term debt (Note 7) | 1,255 | 2,781 |
Accounts payable | 1,274 | 1,103 |
Accrued liabilities: | ' | ' |
Marketing and selling | 503 | 527 |
Taxes, except income taxes | 6,492 | 5,350 |
Employment costs | 949 | 896 |
Dividends payable | 1,507 | 1,418 |
Other | 1,382 | 952 |
Income taxes | 1,192 | 1,456 |
Deferred income taxes | 112 | 114 |
Total current liabilities | 17,066 | 17,016 |
Long-term debt (Note 7) | 24,023 | 17,639 |
Deferred income taxes | 1,477 | 1,875 |
Employment costs | 1,313 | 2,574 |
Other liabilities | 563 | 419 |
Total liabilities | 44,442 | 39,523 |
Contingencies (Note 21) | ' | ' |
Redeemable noncontrolling interest (Note 23) | 0 | 1,301 |
Stockholders’ (Deficit) Equity | ' | ' |
Common stock, no par value (2,109,316,331 shares issued in 2013 and 2012) | 0 | 0 |
Additional paid-in capital | 723 | 1,334 |
Earnings reinvested in the business | 27,843 | 25,076 |
Accumulated other comprehensive losses | -4,190 | -3,604 |
Total stockholders' equity before treasury stock | 24,376 | 22,806 |
Less: cost of repurchased stock (520,313,919 and 455,703,347 shares in 2013 and 2012, respectively) | 32,142 | 26,282 |
Total PMI stockholders’ deficit | -7,766 | -3,476 |
Noncontrolling interests | 1,492 | 322 |
Total stockholders’ deficit | -6,274 | -3,154 |
Total Liabilities and Stockholders’ (Deficit) Equity | $38,168 | $37,670 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Receivables, allowances | $53 | $56 |
Common stock, no par value | $0 | $0 |
Common stock, shares issued | 2,109,316,331 | 2,109,316,331 |
Repurchased stock, shares | 520,313,919 | 455,703,347 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Income Statement [Abstract] | ' | ' | ' | |||
Net revenues | $80,029 | [1] | $77,393 | [1] | $76,346 | [1] |
Cost of sales | 10,410 | 10,373 | 10,678 | |||
Excise taxes on products | 48,812 | 46,016 | 45,249 | |||
Gross profit | 20,807 | 21,004 | 20,419 | |||
Marketing, administration and research costs | 6,890 | 6,961 | 6,870 | |||
Asset impairment and exit costs (Note 5) | 309 | 83 | 109 | |||
Amortization of intangibles | 93 | 97 | 98 | |||
Operating income | 13,515 | 13,863 | 13,342 | |||
Interest expense, net (Note 14) | 973 | 859 | 800 | |||
Earnings before income taxes | 12,542 | 13,004 | 12,542 | |||
Provision for income taxes | 3,670 | 3,833 | 3,653 | |||
Equity (income)/loss in unconsolidated subsidiaries, net | 22 | 17 | 10 | |||
Net earnings | 8,850 | 9,154 | 8,879 | |||
Net earnings attributable to noncontrolling interests | 274 | 354 | 288 | |||
Net earnings attributable to PMI | $8,576 | $8,800 | $8,591 | |||
Per share data (Note 10): | ' | ' | ' | |||
Basic earnings per share (in dollars per share) | $5.26 | $5.17 | $4.85 | |||
Diluted earnings per share (in dollars per share) | $5.26 | $5.17 | $4.85 | |||
[1] | Total net revenues attributable to customers located in Germany, PMI’s largest market in terms of net revenues, were $7.8 billion, $7.7 billion and $8.1 billion for the years ended December 31, 2013, 2012 and 2011, respectively. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net earnings | $8,850 | $9,154 | $8,879 |
Other comprehensive earnings (losses), net of income taxes: | ' | ' | ' |
Unrealized gains (losses), net of income taxes of $227 in 2013, $6 in 2012 and $10 in 2011 | -1,876 | 15 | -852 |
(Gains)/ losses transferred to earnings, net of income taxes of $- in 2013 | -12 | 0 | 0 |
Change in net loss and prior service cost: | ' | ' | ' |
Net gains (losses) and prior service costs, net of income taxes of ($81) in 2013, $144 in 2012 and $148 in 2011 | 1,079 | -943 | -1,031 |
Amortization of net losses, prior service costs and net transition costs, net of income taxes of ($49) in 2013, ($37) in 2012 and ($23) in 2011 | 243 | 160 | 94 |
Change in fair value of derivatives accounted for as hedges: | ' | ' | ' |
(Gains)/losses transferred to earnings, net of income taxes of $34 in 2013, $3 in 2012 and ($2) in 2011 | -235 | -22 | 18 |
Gains/(losses) recognized, net of income taxes of ($30) in 2013, ($14) in 2012 and ($1) in 2011 | 206 | 99 | -5 |
Change in fair value of equity securities | 0 | 0 | -1 |
Total other comprehensive losses | -595 | -691 | -1,777 |
Total comprehensive earnings | 8,255 | 8,463 | 7,102 |
Less comprehensive earnings attributable to: | ' | ' | ' |
Noncontrolling interests | 197 | 210 | 137 |
Redeemable noncontrolling interest | 68 | 194 | 97 |
Comprehensive earnings attributable to PMI | $7,990 | $8,059 | $6,868 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax Effect | $227 | $6 | $10 |
Foreign currency reclassification adjustment, tax effect | 0 | 0 | 0 |
Other Comprehensive Income Net Losses and Prior Service Costs, Tax Effect | -81 | 144 | 148 |
Other Comprehensive Income Amortization of Net Losses Prior Service Costs and Net Transition Costs, Tax Effect | -49 | -37 | -23 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax Effect | 34 | 3 | -2 |
Derivative Instruments Gain Loss Recognized In Other Comprehensive Earnings (Losses) Tax Effect | ($30) | ($14) | ($1) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS (DEFICIT) EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Earnings Reinvested In The Business [Member] | Accumulated Other Comprehensive Losses [Member] | Cost of Repurchased Stock [Member] | Noncontrolling Interests [Member] | ||
In Millions, unless otherwise specified | |||||||||
Beginning balance at Dec. 31, 2010 | $3,933 | $0 | $1,225 | $18,133 | ($1,140) | ($14,712) | $427 | ||
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ||
Net earnings | 8,782 | [1] | ' | ' | 8,591 | ' | ' | 191 | [1] |
Other comprehensive earnings (losses), net of income taxes | -1,777 | [1] | ' | ' | ' | -1,723 | ' | -54 | [1] |
Issuance of stock awards and exercise of stock options | 224 | ' | 12 | ' | ' | 212 | ' | ||
Dividends declared | -4,967 | ' | ' | -4,967 | ' | ' | ' | ||
Payments to noncontrolling interests | -241 | ' | ' | ' | ' | ' | -241 | ||
Purchase of subsidiary shares from noncontrolling interests | -3 | ' | -2 | ' | ' | ' | -1 | ||
Common stock repurchased | -5,400 | ' | ' | ' | ' | -5,400 | ' | ||
Ending balance at Dec. 31, 2011 | 551 | 0 | 1,235 | 21,757 | -2,863 | -19,900 | 322 | ||
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ||
Net earnings | 8,983 | [1] | ' | ' | 8,800 | ' | ' | 183 | [1] |
Other comprehensive earnings (losses), net of income taxes | -714 | [1] | ' | ' | ' | -741 | ' | 27 | [1] |
Issuance of stock awards and exercise of stock options | 218 | ' | 100 | ' | ' | 118 | ' | ||
Dividends declared | -5,481 | ' | ' | -5,481 | ' | ' | ' | ||
Payments to noncontrolling interests | -209 | ' | ' | ' | ' | ' | -209 | ||
Purchase of subsidiary shares from noncontrolling interests | -2 | ' | -1 | ' | ' | ' | -1 | ||
Common stock repurchased | -6,500 | ' | ' | ' | ' | -6,500 | ' | ||
Ending balance at Dec. 31, 2012 | -3,154 | 0 | 1,334 | 25,076 | -3,604 | -26,282 | 322 | ||
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ||
Net earnings | 8,751 | [1] | ' | ' | 8,576 | ' | ' | 175 | [1] |
Other comprehensive earnings (losses), net of income taxes | -564 | [1] | ' | ' | ' | -535 | ' | -29 | [1] |
Issuance of stock awards and exercise of stock options | 201 | ' | 61 | ' | ' | 140 | ' | ||
Dividends declared | -5,809 | ' | ' | -5,809 | ' | ' | ' | ||
Payments to noncontrolling interests | -210 | ' | ' | ' | ' | ' | -210 | ||
Purchase of subsidiary shares from noncontrolling interests | -764 | ' | -672 | ' | -51 | ' | -41 | ||
Transfer of redeemable noncontrolling interest | 1,275 | ' | ' | ' | ' | ' | 1,275 | ||
Common stock repurchased | -6,000 | ' | ' | ' | ' | -6,000 | ' | ||
Ending balance at Dec. 31, 2013 | ($6,274) | $0 | $723 | $27,843 | ($4,190) | ($32,142) | $1,492 | ||
[1] | Net earnings attributable to noncontrolling interests exclude $99 million of earnings related to the redeemable noncontrolling interest, which were originally reported outside of the equity section and are included in the redeemable noncontrolling interest amount transferred to equity during 2013. Other comprehensive losses, net of income taxes, also exclude $33 million of net currency translation adjustment losses and a $2 million reduction of net loss and prior service costs related to the redeemable noncontrolling interest prior to the date of transfer. Net earnings attributable to noncontrolling interests exclude $171 million of earnings related to the redeemable noncontrolling interest, which is reported outside of the equity section in the consolidated balance sheet at December 31, 2012. Other comprehensive earnings (losses), net of income taxes, also exclude $25 million of net currency translation adjustment gains and $2 million of net loss and prior service cost losses related to the redeemable noncontrolling interest at December 31, 2012. Net earnings attributable to noncontrolling interests exclude $97 million of earnings related to the redeemable noncontrolling interest, which is reported outside the equity section in the consolidated balance sheet at December 31, 2011. Other comprehensive losses, net of income taxes, also exclude less than $1 million of net currency translation adjustment losses related to the redeemable noncontrolling interest at December 31, 2011. |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS (DEFICIT) EQUITY (Parenthetical) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2011 |
Dividends declared (in dollars per share) | $2.82 |
Share of net earnings | $97 |
Redeemable Noncontrolling Interest [Member] | ' |
Currency translation | 0 |
Maximum [Member] | Redeemable Noncontrolling Interest [Member] | ' |
Currency translation | ($1) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ' | ' | ' |
Net earnings | $8,850 | $9,154 | $8,879 |
Adjustments to reconcile net earnings to operating cash flows: | ' | ' | ' |
Depreciation and amortization | 882 | 898 | 993 |
Deferred income tax (benefit) provision | -28 | -248 | 15 |
Asset impairment and exit costs, net of cash paid | 288 | 26 | 11 |
Cash effects of changes, net of the effects from acquired companies: | ' | ' | ' |
Receivables, net | -449 | -398 | -251 |
Inventories | -1,413 | -728 | -36 |
Accounts payable | 103 | 10 | 199 |
Income taxes | -331 | 638 | 231 |
Accrued liabilities and other current assets | 1,880 | -183 | 691 |
Pension plan contributions | -150 | -207 | -535 |
Other | 503 | 459 | 332 |
Net cash provided by operating activities | 10,135 | 9,421 | 10,529 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -1,200 | -1,056 | -897 |
Investments in unconsolidated subsidiaries | -1,418 | -6 | -36 |
Purchase of businesses, net of acquired cash | 0 | 0 | -80 |
Other | -62 | 70 | -19 |
Net cash used in investing activities | -2,680 | -992 | -1,032 |
Short-term borrowing activity by original maturity: | ' | ' | ' |
Net issuances (repayments) - maturities of 90 days or less | -1,099 | 1,515 | -968 |
Issuances - maturities longer than 90 days | 2,000 | 603 | 921 |
Repayments - maturities longer than 90 days | -849 | -1,220 | -179 |
Long-term debt proceeds | 7,181 | 5,516 | 3,767 |
Long-term debt repaid | -2,738 | -2,237 | -1,483 |
Repurchases of common stock | -5,963 | -6,525 | -5,372 |
Issuances of common stock | 0 | 1 | 75 |
Dividends paid | -5,720 | -5,404 | -4,788 |
Purchase of subsidiary shares from noncontrolling interests | -703 | -2 | -3 |
Other | -324 | -347 | -308 |
Net cash used in financing activities | -8,215 | -8,100 | -8,338 |
Effect of exchange rate changes on cash and cash equivalents | -69 | 104 | -312 |
Cash and cash equivalents: | ' | ' | ' |
(Decrease) Increase | -829 | 433 | 847 |
Balance at beginning of year | 2,983 | 2,550 | 1,703 |
Balance at end of year | 2,154 | 2,983 | 2,550 |
Cash Paid: | ' | ' | ' |
Interest | 978 | 986 | 963 |
Income taxes | $3,999 | $3,420 | $3,366 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Background and Basis of Presentation | ' |
Background and Basis of Presentation: | |
Background | |
Philip Morris International Inc. is a holding company incorporated in Virginia, U.S.A., whose subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. Throughout these financial statements, the term "PMI" refers to Philip Morris International Inc. and its subsidiaries. | |
Basis of presentation | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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; 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 in which PMI has an ownership interest of less than 20%, or does not exercise significant influence, are accounted for under the cost method of accounting. All intercompany transactions and balances have been eliminated. | |
Certain prior years' amounts have been reclassified to conform with the current year's presentation, due to the separate disclosure | |
of investments in unconsolidated subsidiaries. For further details, see Note 4. Investments in Unconsolidated Subsidiaries. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies: | |
Cash and cash equivalents | |
Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. | |
Depreciation | |
Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 15 years, and buildings and building improvements over periods up to 40 years. Depreciation expense for 2013, 2012 and 2011 was $789 million, $801 million and $895 million, respectively. | |
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 first 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. To determine the fair value of goodwill, PMI primarily uses a discounted cash flow model, supported by the market approach using earnings multiples of comparable companies. To determine the fair value of non-amortizable intangible assets, PMI primarily uses a discounted cash flow model applying the relief-from-royalty method. These discounted cash flow models include management assumptions relevant for forecasting operating cash flows, which are subject to changes in business conditions, such as volumes and prices, costs to produce, discount rates and estimated capital needs. Management considers historical experience and all available information at the time the fair values are estimated, and PMI believes these assumptions are consistent with the assumptions a hypothetical marketplace participant would use. PMI concluded that the fair value of our reporting units and non-amortizable intangible assets exceeded the carrying value, and any reasonable movement in the assumptions would not result in an impairment. Since the March 28, 2008, spin-off from Altria Group, Inc. ("Altria"), PMI has not recorded a charge to earnings for an impairment of goodwill or non-amortizable intangible assets. | |
Foreign currency translation | |
PMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. PMI recorded net transaction losses of $123 million, $51 million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively, in marketing, administration and research costs on the consolidated statements of earnings. | |
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 | |
46 | |
losses are reclassified to the consolidated statements of earnings in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. | |
Impairment of long-lived assets | |
PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. | |
Income taxes | |
Income tax provisions for jurisdictions outside the United States, 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. | |
Inventories | |
Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. | |
Marketing costs | |
PMI promotes its products with advertising, consumer incentives and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives and volume-based incentives. Advertising 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 incentive expenses are charged to earnings based on estimated sales and related expenses for the full year. | |
Revenue recognition | |
PMI recognizes revenues, net of sales incentives and including shipping and handling charges billed to customers, either upon shipment or delivery of goods when title and risk of loss pass to customers. Excise taxes billed by PMI to customers are reported in net revenues. Shipping and handling costs are classified as part of cost of sales and were $833 million, $802 million and $905 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Software costs | |
PMI capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment on PMI’s consolidated balance sheets and are amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed five years. | |
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. The fair value of restricted stock and deferred stock is determined based on the number of shares granted and the market value at date of grant. | |
Excess tax benefits from the vesting of stock-based awards of $13 million, $24 million and $19 million were recognized in additional paid-in capital as of December 31, 2013, 2012 and 2011, respectively, and were presented as financing cash flows. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, net | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets, net | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets, net: | |||||||||||||||||||||
Goodwill and other intangible assets, net, by segment were as follows: | |||||||||||||||||||||
Goodwill | Other Intangible Assets, net | ||||||||||||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||
European Union | $ | 1,472 | $ | 1,448 | $ | 604 | $ | 647 | |||||||||||||
Eastern Europe, Middle East & Africa | 617 | 637 | 228 | 242 | |||||||||||||||||
Asia | 3,960 | 4,791 | 1,251 | 1,542 | |||||||||||||||||
Latin America & Canada | 2,844 | 3,024 | 1,110 | 1,188 | |||||||||||||||||
Total | $ | 8,893 | $ | 9,900 | $ | 3,193 | $ | 3,619 | |||||||||||||
47 | |||||||||||||||||||||
Goodwill is due primarily to PMI’s acquisitions in Canada, Indonesia, Mexico, Greece, Serbia, Colombia and Pakistan, as well as the business combination in the Philippines. The movements in goodwill were as follows: | |||||||||||||||||||||
(in millions) | European | Eastern Europe, | Asia | Latin | Total | ||||||||||||||||
Union | Middle East | America & | |||||||||||||||||||
& | Canada | ||||||||||||||||||||
Africa | |||||||||||||||||||||
Balance at January 1, 2012 | $ | 1,392 | $ | 666 | $ | 4,966 | $ | 2,904 | $ | 9,928 | |||||||||||
Changes due to: | |||||||||||||||||||||
Currency | 56 | (29 | ) | (175 | ) | 120 | (28 | ) | |||||||||||||
Balances, December 31, 2012 | 1,448 | 637 | 4,791 | 3,024 | 9,900 | ||||||||||||||||
Changes due to: | |||||||||||||||||||||
Currency | 24 | (20 | ) | (831 | ) | (180 | ) | (1,007 | ) | ||||||||||||
Balance at December 31, 2013 | $ | 1,472 | $ | 617 | $ | 3,960 | $ | 2,844 | $ | 8,893 | |||||||||||
Additional details of other intangible assets were as follows: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
(in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Non-amortizable intangible assets | $ | 1,798 | $ | 2,046 | |||||||||||||||||
Amortizable intangible assets | 1,940 | $ | 545 | 2,046 | $ | 473 | |||||||||||||||
Total other intangible assets | $ | 3,738 | $ | 545 | $ | 4,092 | $ | 473 | |||||||||||||
Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia in 2005 and Mexico in 2007. Amortizable intangible assets primarily consist of certain trademarks, distribution networks and non-compete agreements associated with business combinations. The gross carrying amount, range of useful lives as well as the weighted-average remaining useful life of amortizable intangible assets at December 31, 2013, were as follows: | |||||||||||||||||||||
Description (in millions) | Gross | Initial Estimated | Weighted-Average | ||||||||||||||||||
Carrying | Useful Lives | Remaining Useful Life | |||||||||||||||||||
Amount | |||||||||||||||||||||
Trademarks | $ | 1,586 | 2 - 40 years | 24 years | |||||||||||||||||
Distribution networks | 160 | 20 - 30 years | 14 years | ||||||||||||||||||
Non-compete agreements | 135 | 3 - 10 years | 1 year | ||||||||||||||||||
Other (including farmer contracts and intellectual property rights) | 59 | 12.5 - 17 years | 12 years | ||||||||||||||||||
$ | 1,940 | ||||||||||||||||||||
Pre-tax amortization expense for intangible assets during the years ended December 31, 2013, 2012 and 2011, was $93 million, $97 million and $98 million, respectively. Amortization expense for each of the next five years is estimated to be approximately $93 million, assuming no additional transactions occur that require the amortization of intangible assets. | |||||||||||||||||||||
The decrease in the gross carrying amount of other intangible assets from December 31, 2012, was due primarily to currency movements. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Investments in Unconsolidated Subsidiaries | ' |
Investments in Unconsolidated Subsidiaries: | |
At December 31, 2013 and 2012, PMI had total investments in unconsolidated subsidiaries of $1,536 million and $24 million, respectively, which were accounted for under the equity method of accounting. 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. The carrying value of our equity method investments at December 31, 2013, exceeded our share of the unconsolidated subsidiaries book value by $579 million, including $519 million attributable to goodwill. The difference between the investment carrying value and the amount of underlying equity in net assets, excluding the $519 million attributable to goodwill, is being amortized on a straight-line basis over the underlying assets' estimated useful lives of 4 to 20 years. | |
On September 30, 2013, PMI acquired a 49% equity interest in United Arab Emirates-based Arab Investors-TA (FZC) (“AITA”) for approximately $625 million. As a result of this transaction, PMI holds an approximate 25% economic interest in Société des Tabacs Algéro-Emiratie (“STAEM”), an Algerian joint venture that is 51% owned by AITA and 49% by the Algerian state-owned enterprise Société Nationale des Tabacs et Allumettes SpA. STAEM manufactures and distributes under license some of PMI’s brands. The initial investment in AITA was recorded at cost and is included in investments in unconsolidated subsidiaries on the consolidated balance sheet at December 31, 2013. | |
On December 12, 2013, PMI acquired from Megapolis Investment BV a 20% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis ("Megapolis"), PMI's distributor in Russia, for a purchase price of $750 million. An additional payment of up to $100 million, which is contingent on Megapolis' operational performance over the four fiscal years following the closing of the transaction, will also be made by PMI if the performance criteria are satisfied. PMI has also agreed to provide Megapolis Investment BV with a $100 million interest-bearing loan. PMI and Megapolis Investment BV have agreed to set off any future contingent payments owed by PMI against the future repayments due under the loan agreement. Any loan repayments in | |
48 | |
excess of the contingent consideration earned by the performance of Megapolis are due to be repaid, in cash, to PMI on March 31, 2017. At December 31, 2013, PMI has recorded a $100 million asset related to the loan receivable and a discounted liability of $86 million related to the contingent consideration. The initial investment in Megapolis was recorded at cost and is included in investments in unconsolidated subsidiaries on the consolidated balance sheet at December 31, 2013. The determination of the basis difference for Megapolis was not finalized as of December 31, 2013. | |
At December 31, 2013 and 2012, PMI's investments in other unconsolidated subsidiaries were $42 million and $24 million, respectively, with ownership percentages ranging from 40% to 50%. | |
As of December 31, 2013, PMI had approximately $345 million of net sales (since the related acquisition dates of AITA and Megapolis), $470 million in receivables, $100 million in notes receivable and $86 million in debt relating to agreements with its unconsolidated subsidiaries within the EEMA Region. These agreements, which are in the ordinary course of business, are primarily for distribution, contract manufacturing and licenses. PMI eliminated its respective share of all significant intercompany transactions with the equity method investees. |
Asset_Impairment_and_Exit_Cost
Asset Impairment and Exit Costs | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Asset Impairment and Exit Costs | ' | |||||||||||
Asset Impairment and Exit Costs: | ||||||||||||
During 2013, 2012 and 2011, pre-tax asset impairment and exit costs consisted of the following: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Separation programs: | ||||||||||||
European Union | $ | 13 | $ | — | $ | 35 | ||||||
Eastern Europe, Middle East & Africa | 14 | — | 6 | |||||||||
Asia | 19 | 13 | 7 | |||||||||
Latin America & Canada | 5 | 29 | 15 | |||||||||
Total separation programs | 51 | 42 | 63 | |||||||||
Contract termination charges: | ||||||||||||
Eastern Europe, Middle East & Africa | 250 | — | 12 | |||||||||
Asia | 8 | 13 | — | |||||||||
Total contract termination charges | 258 | 13 | 12 | |||||||||
Asset impairment charges: | ||||||||||||
European Union | — | 5 | 10 | |||||||||
Eastern Europe, Middle East & Africa | — | 5 | 7 | |||||||||
Asia | — | 13 | 8 | |||||||||
Latin America & Canada | — | 5 | 9 | |||||||||
Total asset impairment charges | — | 28 | 34 | |||||||||
Asset impairment and exit costs | $ | 309 | $ | 83 | $ | 109 | ||||||
Exit Costs | ||||||||||||
Separation Programs | ||||||||||||
PMI recorded pre-tax separation program charges of $51 million, $42 million and $63 million for the years ended December 31, 2013, 2012 and 2011, respectively. The 2013 pre-tax separation program charges primarily related to the restructuring of global and regional functions based in Switzerland and Australia. The 2012 pre-tax separation program charges primarily related to severance costs associated with factory restructurings. The 2011 pre-tax separation program charges primarily related to severance costs for factory and R&D restructurings. | ||||||||||||
Contract Termination Charges | ||||||||||||
During 2013, PMI recorded exit costs of $258 million related to the termination of distribution agreements in Eastern Europe, Middle East & Africa (due to a new business model in Egypt) and Asia. During 2012, PMI recorded exit costs of $13 million related to the termination of distribution agreements in Asia. During 2011, PMI recorded exit costs of $12 million related to the termination of a distribution agreement in Eastern Europe, Middle East & Africa. | ||||||||||||
Movement in Exit Cost Liabilities | ||||||||||||
The movement in exit cost liabilities for PMI was as follows: | ||||||||||||
(in millions) | ||||||||||||
Liability balance, January 1, 2012 | $ | 28 | ||||||||||
Charges | 55 | |||||||||||
Cash spent | (57 | ) | ||||||||||
Currency/other | (6 | ) | ||||||||||
Liability balance, December 31, 2012 | $ | 20 | ||||||||||
Charges | 309 | |||||||||||
Cash spent | (21 | ) | ||||||||||
Currency/other | — | |||||||||||
Liability balance, December 31, 2013 | $ | 308 | ||||||||||
Cash payments related to exit costs at PMI were $21 million, $57 million and $98 million for the years ended December 31, 2013, 2012 and 2011, respectively. Future cash payments for exit costs incurred to date are expected to be approximately $308 million, and these costs will be substantially paid in 2014. | ||||||||||||
49 | ||||||||||||
Asset Impairment Charges | ||||||||||||
PMI recorded pre-tax asset impairment charges of $28 million and $34 million for the years ended December 31, 2012 and 2011, respectively, primarily related to the consolidation of R&D activities as well as charges for factory restructurings. |
Acquisitions_and_Other_Busines
Acquisitions and Other Business Arrangements | 12 Months Ended |
Dec. 31, 2013 | |
Business Combination, Description [Abstract] | ' |
Acquisitions and Other Business Arrangements | ' |
Acquisitions and Other Business Arrangements: | |
Mexico | |
In May 2013, PMI announced that Grupo Carso, S.A.B. de C.V. ("Grupo Carso") would sell to PMI its remaining 20% interest in PMI's Mexican tobacco business. The sale was completed on September 30, 2013, with the approval of the Mexican antitrust authority, for $703 million. As a result, PMI now owns 100% of its Mexican tobacco business. A director of PMI has an affiliation with Grupo Carso. The final purchase price is subject to a potential adjustment based on the actual performance of the Mexican tobacco business over the three-year period ending two fiscal years after the closing of the purchase. In addition, upon declaration, PMI will pay a dividend of approximately $38 million to Grupo Carso related to the earnings of the Mexican tobacco business for the nine months ended September 30, 2013. The purchase of the remaining 20% interest resulted in a decrease to PMI's additional paid-in capital of $672 million. | |
Other | |
In June 2011, PMI completed the acquisition of a cigarette business in Jordan, consisting primarily of cigarette manufacturing assets and inventories, for $42 million. In January 2011, PMI acquired a cigar business, consisting primarily of trademarks in the Australian and New Zealand markets, for $20 million. | |
The effects of these and other smaller acquisitions were not material to PMI's consolidated financial position, results of operations or operating cash flows in any of the periods presented. |
Indebtedness
Indebtedness | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Indebtedness | ' | |||||||||||||
Indebtedness: | ||||||||||||||
Short-Term Borrowings | ||||||||||||||
At December 31, 2013 and 2012, PMI’s short-term borrowings and related average interest rates consisted of the following: | ||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||
(in millions) | Amount Outstanding | Average Year-End Rate | Amount Outstanding | Average Year-End Rate | ||||||||||
Commercial paper | $ | 1,387 | 0.1 | % | $ | 1,972 | 0.2 | % | ||||||
Bank loans | 1,013 | 5.7 | 447 | 6.6 | ||||||||||
$ | 2,400 | $ | 2,419 | |||||||||||
Given the mix of subsidiaries and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country. | ||||||||||||||
The fair values of PMI’s short-term borrowings at December 31, 2013 and 2012, based upon current market interest rates, approximate the amounts disclosed above. | ||||||||||||||
Long-Term Debt | ||||||||||||||
At December 31, 2013 and 2012, PMI’s long-term debt consisted of the following: | ||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
U.S. dollar notes, 0.287% to 6.875% (average interest rate 4.105%), due through 2043 | $ | 16,500 | $ | 14,702 | ||||||||||
Foreign currency obligations: | ||||||||||||||
Euro notes, 1.750% to 5.875% (average interest rate 3.340%), due through 2033 | 7,303 | 3,724 | ||||||||||||
Swiss franc notes, 0.875% to 2.000% (average interest rate 1.240%), due through 2021 | 1,289 | 1,579 | ||||||||||||
Other (average interest rate 3.621%), due through 2024 | 186 | 415 | ||||||||||||
25,278 | 20,420 | |||||||||||||
Less current portion of long-term debt | 1,255 | 2,781 | ||||||||||||
$ | 24,023 | $ | 17,639 | |||||||||||
Other debt: | ||||||||||||||
Other foreign currency debt above includes mortgage debt in Switzerland at December 31, 2013 and 2012, and debt from our business combination in the Philippines at December 31, 2012. Other foreign currency debt also includes capital lease obligations. | ||||||||||||||
50 | ||||||||||||||
Debt Issuances Outstanding: | ||||||||||||||
PMI’s debt issuances outstanding at December 31, 2013 were as follows: | ||||||||||||||
(in millions) | ||||||||||||||
Type | Face Value | Interest | Issuance | Maturity | ||||||||||
Rate | ||||||||||||||
U.S. dollar notes | $1,250 | 6.88% | Nov-08 | Mar-14 | ||||||||||
U.S. dollar notes | $400 | Floating | Mar-13 | Feb-15 | ||||||||||
U.S. dollar notes | $650 | 2.50% | May-11 | May-16 | ||||||||||
U.S. dollar notes | $600 | 2.50% | August 2011(a) | May-16 | ||||||||||
U.S. dollar notes | $550 | 1.63% | Mar-12 | Mar-17 | ||||||||||
U.S. dollar notes | $750 | 1.13% | Aug-12 | Aug-17 | ||||||||||
U.S. dollar notes | $2,500 | 5.65% | May-08 | May-18 | ||||||||||
U.S. dollar notes | $750 | 1.88% | Nov-13 | Jan-19 | ||||||||||
U.S. dollar notes | $1,000 | 4.50% | Mar-10 | Mar-20 | ||||||||||
U.S. dollar notes | $350 | 4.13% | May-11 | May-21 | ||||||||||
U.S. dollar notes | $750 | 2.90% | Nov-11 | Nov-21 | ||||||||||
U.S. dollar notes | $750 | 2.50% | Aug-12 | Aug-22 | ||||||||||
U.S. dollar notes | $600 | 2.63% | Mar-13 | Mar-23 | ||||||||||
U.S. dollar notes | $500 | 3.60% | Nov-13 | Nov-23 | ||||||||||
U.S. dollar notes | $1,500 | 6.38% | May-08 | May-38 | ||||||||||
U.S. dollar notes | $750 | 4.38% | Nov-11 | Nov-41 | ||||||||||
U.S. dollar notes | $700 | 4.50% | Mar-12 | Mar-42 | ||||||||||
U.S. dollar notes | $750 | 3.88% | Aug-12 | Aug-42 | ||||||||||
U.S. dollar notes | $850 | 4.13% | Mar-13 | Mar-43 | ||||||||||
U.S. dollar notes | $750 | 4.88% | Nov-13 | Nov-43 | ||||||||||
EURO notes | (b) | €750 (approximately $1,105) | 5.88% | Sep-08 | Sep-15 | |||||||||
EURO notes | (b) | €750 (approximately $976) | 5.75% | Mar-09 | Mar-16 | |||||||||
EURO notes | (b) | €750 (approximately $951) | 2.13% | May-12 | May-19 | |||||||||
EURO notes | (b) | €1,250 (approximately $1,621) | 1.75% | Mar-13 | Mar-20 | |||||||||
EURO notes | (b) | €600 (approximately $761) | 2.88% | May-12 | May-24 | |||||||||
EURO notes | (b) | €750 (approximately $972) | 2.75% | Mar-13 | Mar-25 | |||||||||
EURO notes | (b) | €500 (approximately $648) | 3.13% | Jun-13 | Jun-33 | |||||||||
Swiss franc notes | (b) | CHF325 (approximately $362) | 1.00% | Dec-11 | Dec-16 | |||||||||
Swiss franc notes | (b) | CHF200 (approximately $217) | 0.88% | Mar-13 | Mar-19 | |||||||||
Swiss franc notes | (b) | CHF325 (approximately $334) | 1.00% | Sep-12 | Sep-20 | |||||||||
Swiss franc notes | (b) | CHF300 (approximately $335) | 2.00% | Dec-11 | Dec-21 | |||||||||
(a) The notes are a further issuance of the 2.500% notes issued by PMI in May 2011. | ||||||||||||||
(b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. | ||||||||||||||
The net proceeds from the sale of the securities listed in the table above were used to meet PMI’s working capital requirements, to repurchase PMI’s common stock, to refinance debt and for general corporate purposes. | ||||||||||||||
Aggregate maturities: | ||||||||||||||
Aggregate maturities of long-term debt are as follows: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | 1,255 | ||||||||||||
2015 | 1,439 | |||||||||||||
2016 | 2,654 | |||||||||||||
2017 | 1,302 | |||||||||||||
2018 | 2,502 | |||||||||||||
2019-2023 | 8,389 | |||||||||||||
2024-2028 | 2,010 | |||||||||||||
Thereafter | 5,988 | |||||||||||||
25,539 | ||||||||||||||
Debt discounts | (261 | ) | ||||||||||||
Total long-term debt | $ | 25,278 | ||||||||||||
See Note 16. Fair Value Measurements for additional disclosures related to the fair value of PMI’s debt. | ||||||||||||||
Credit Facilities | ||||||||||||||
On February 12, 2013, PMI entered into a 364-day revolving credit facility in the amount of $2.0 billion. | ||||||||||||||
At December 31, 2013, PMI’s total committed credit facilities and commercial paper outstanding were as follows: | ||||||||||||||
Type | Committed | Commercial | ||||||||||||
(in billions of dollars) | Credit | Paper | ||||||||||||
Facilities | ||||||||||||||
364-day revolving credit, expiring February 11, 2014 | $ | 2 | ||||||||||||
Multi-year revolving credit, expiring March 31, 2015 | 2.5 | |||||||||||||
Multi-year revolving credit, expiring October 25, 2016 | 3.5 | |||||||||||||
Total facilities | $ | 8 | ||||||||||||
Commercial paper outstanding | $ | 1.4 | ||||||||||||
At December 31, 2013, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. | ||||||||||||||
On January 31, 2014, PMI extended the term of its existing $2.0 billion 364-day revolving credit facility until February 10, 2015. | ||||||||||||||
51 | ||||||||||||||
Each of these facilities requires PMI to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“consolidated EBITDA”) to consolidated interest expense of not less than 3.5 to 1.0 on a rolling four-quarter basis. At December 31, 2013, PMI’s ratio calculated in accordance with the agreements was 14.6 to 1.0. These facilities do not include any credit rating triggers, material adverse change clauses or any provisions that could require PMI to post collateral. The terms “consolidated EBITDA” and “consolidated interest expense,” both of which include certain adjustments, are defined in the facility agreements previously filed with the Securities and Exchange Commission. | ||||||||||||||
In addition to the committed credit facilities discussed above, certain subsidiaries maintain short-term credit arrangements to meet their respective working capital needs. These credit arrangements, which amounted to approximately $2.4 billion at December 31, 2013, and $2.0 billion at December 31, 2012, are for the sole use of the subsidiaries. Borrowings under these arrangements amounted to $1.0 billion at December 31, 2013, and $447 million at December 31, 2012. |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
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 | |||||||
Repurchased | Outstanding | ||||||||
Balances, January 1, 2011 | 2,109,316,331 | (307,532,841 | ) | 1,801,783,490 | |||||
Repurchase of shares | (80,514,257 | ) | (80,514,257 | ) | |||||
Exercise of stock options and issuance of other stock awards | 4,639,433 | 4,639,433 | |||||||
Balances, December 31, 2011 | 2,109,316,331 | (383,407,665 | ) | 1,725,908,666 | |||||
Repurchase of shares | (74,897,499 | ) | (74,897,499 | ) | |||||
Issuance of stock awards and exercise of stock options | 2,601,817 | 2,601,817 | |||||||
Balances, December 31, 2012 | 2,109,316,331 | (455,703,347 | ) | 1,653,612,984 | |||||
Repurchase of shares | (67,231,392 | ) | (67,231,392 | ) | |||||
Issuance of stock awards and exercise of stock options | 2,620,820 | 2,620,820 | |||||||
Balances, December 31, 2013 | 2,109,316,331 | (520,313,919 | ) | 1,589,002,412 | |||||
On May 1, 2010, PMI commenced a $12.0 billion three-year share repurchase program. On July 31, 2012, PMI completed, ahead of schedule, the $12.0 billion share repurchase program, which resulted in the purchase of 179.1 million shares at an average price of $66.99 per share. On August 1, 2012, PMI commenced a three-year $18 billion share repurchase program that was authorized by PMI's Board of Directors in June 2012. From August 1, 2012, through December 31, 2013, PMI repurchased 99.4 million shares of its common stock at a cost of $8.9 billion, or $89.03 per share, under this repurchase program. During 2013, 2012 and 2011, PMI repurchased $6.0 billion, $6.5 billion and $5.4 billion, respectively, of its common stock. | |||||||||
At December 31, 2013, 36,591,569 shares of common stock were reserved for stock options and other 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, 2013 | |||||||||||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ||||||||||||
Stock Plans | ' | ||||||||||||
Stock Plans: | |||||||||||||
Performance Incentive Plan and Stock Compensation Plan for Non-Employee Directors | |||||||||||||
In May 2012, PMI's stockholders approved the Philip Morris International Inc. 2012 Performance Incentive Plan (the "2012 Plan"). The 2012 Plan replaced the 2008 Performance Incentive Plan (the "2008 Plan") and, as a result, there will be no additional grants under the 2008 Plan. Under the 2012 Plan, PMI may grant to eligible employees restricted stock, restricted stock units and deferred stock units, performance-based cash incentive awards and performance-based equity awards. While the 2008 Plan authorized incentive stock options, non-qualified stock options and stock appreciation rights, the 2012 Plan does not authorize any stock options or stock appreciation rights. Up to 30 million shares of PMI’s common stock may be issued under the 2012 Plan. At December 31, 2013, shares available for grant under the 2012 Plan were 27,211,610. | |||||||||||||
In 2008, PMI adopted the Philip Morris International Inc. 2008 Stock Compensation Plan for Non-Employee Directors (the “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 Non-Employee Directors Plan. As of December 31, 2013, shares available for grant under the plan were 783,905. | |||||||||||||
Restricted and Deferred Stock Awards | |||||||||||||
PMI may grant restricted stock and deferred stock awards to eligible employees; recipients may not sell, assign, pledge or otherwise encumber such shares or awards. Such shares or awards are subject to forfeiture if certain employment conditions are not met. Restricted stock and deferred stock awards generally vest on the third anniversary of the grant date. | |||||||||||||
52 | |||||||||||||
Shares of restricted stock carry voting and dividend rights. Deferred stock awards carry no such rights, although they do earn dividend equivalents. | |||||||||||||
During 2013, the activity for restricted stock and deferred stock awards was as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Per Share | |||||||||||||
Balance at January 1, 2013 | 9,484,865 | $ | 62.44 | ||||||||||
Granted | 2,783,310 | 88.43 | |||||||||||
Vested | (3,276,901 | ) | 50.02 | ||||||||||
Forfeited | (171,974 | ) | 73.02 | ||||||||||
Balance at December 31, 2013 | 8,819,300 | $ | 75.05 | ||||||||||
The weighted-average grant date fair value of the restricted stock and deferred stock awards granted to PMI employees during the years ended December 31, 2013, 2012 and 2011, was $246 million, $258 million and $229 million, or $88.43, $79.59 and $59.44 per restricted or deferred share, respectively. The fair value of the restricted stock and deferred stock awards at the date of grant is amortized to expense ratably over the restriction period. PMI recorded compensation expense for the restricted and deferred stock awards of $220 million, $242 million and $162 million for the years ended December 31, 2013, 2012 and 2011, respectively. During the first quarter of 2012, compensation expense included approximately $27 million of accelerated expense primarily associated with employees approaching or reaching certain age milestones that accelerate the vesting. As of December 31, 2013, PMI had $225 million of total unrecognized compensation costs related to non-vested restricted and deferred stock awards. These costs are expected to be recognized over a weighted-average period of two years, subject to earlier vesting on death or disability or normal retirement, or separation from employment by mutual agreement after reaching age 58. | |||||||||||||
During the year ended December 31, 2013, 3.3 million shares of PMI restricted and deferred stock awards vested. The grant date fair value of all the vested shares was approximately $164 million. The total fair value of the awards that vested in 2013 was approximately $296 million. | |||||||||||||
During the year ended December 31, 2012, 3.7 million shares of PMI restricted and deferred stock awards vested. The grant date fair value of all the vested shares was approximately $148 million. The total fair value of the awards that vested in 2012 was approximately $298 million. | |||||||||||||
During the year ended December 31, 2011, 1.8 million shares of PMI restricted and deferred stock awards vested. The grant date fair value of all the vested shares was approximately $84 million. The total fair value of the awards that vested in 2011 was approximately $107 million. | |||||||||||||
Stock Option Awards | |||||||||||||
At December 31, 2013, PMI shares subject to option that remain under the 2008 Plan were as follows: | |||||||||||||
Shares | Weighted- | Average | Aggregate | ||||||||||
Subject | Average | Remaining | Intrinsic | ||||||||||
to Option | Exercise | Contractual | Value | ||||||||||
Price | Term | ||||||||||||
Balance at January 1, 2013 | 36,811 | $ | 26.13 | ||||||||||
Options exercised | (14,097 | ) | 22.5 | ||||||||||
Options cancelled | — | — | |||||||||||
Balance/Exercisable at December 31, 2013 | 22,714 | $ | 28.38 | 0.4 years | $ | 1 | million | ||||||
For the years ended December 31, 2013, 2012 and 2011, the total intrinsic value of PMI stock options exercised was $1 million, $2 million and $129 million, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Net earnings attributable to PMI | $ | 8,576 | $ | 8,800 | $ | 8,591 | ||||||
Less distributed and undistributed earnings attributable to share-based payment awards | 45 | 48 | 49 | |||||||||
Net earnings for basic and diluted EPS | $ | 8,531 | $ | 8,752 | $ | 8,542 | ||||||
Weighted-average shares for basic EPS | 1,622 | 1,692 | 1,761 | |||||||||
Plus incremental shares from assumed conversions: | ||||||||||||
Stock options | — | — | 1 | |||||||||
Weighted-average shares for diluted EPS | 1,622 | 1,692 | 1,762 | |||||||||
For the 2013, 2012 and 2011 computations, there were no antidilutive stock options. | ||||||||||||
53 |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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, 2013, 2012 and 2011: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Earnings before income taxes | $ | 12,542 | $ | 13,004 | $ | 12,542 | ||||||
Provision for income taxes: | ||||||||||||
United States federal: | ||||||||||||
Current | $ | 247 | $ | 226 | $ | 270 | ||||||
Deferred | (5 | ) | (61 | ) | 118 | |||||||
Total United States | 242 | 165 | 388 | |||||||||
Outside United States: | ||||||||||||
Current | 3,451 | 3,855 | 3,368 | |||||||||
Deferred | (23 | ) | (187 | ) | (103 | ) | ||||||
Total outside United States | 3,428 | 3,668 | 3,265 | |||||||||
Total provision for income taxes | $ | 3,670 | $ | 3,833 | $ | 3,653 | ||||||
United States income tax is primarily attributable to repatriation costs. | ||||||||||||
At December 31, 2013, applicable United States federal income taxes and foreign withholding taxes have not been provided on approximately $20 billion of accumulated earnings of foreign subsidiaries that are expected to be permanently reinvested. These earnings have been or will be invested to support the growth of PMI's international business. Further, PMI does not foresee a need to repatriate these earnings to the U.S. since its U.S. cash requirements are supported by distributions from foreign entities of earnings that have not been designated as permanently reinvested and existing credit facilities. Repatriation of earnings from foreign subsidiaries for which PMI has asserted that the earnings are permanently reinvested would result in additional U.S. income and foreign withholding taxes. The determination of the amount of deferred tax related to these earnings is not practicable due to the complexity of the U.S. foreign tax credit regime, as well as differences between earnings determined for book and tax purposes mainly resulting from intercompany transactions, purchase accounting and currency fluctuations. | ||||||||||||
On March 28, 2008, PMI entered into a Tax Sharing Agreement (the “Tax Sharing Agreement”) with Altria. The Tax Sharing Agreement generally governs PMI’s and Altria’s respective rights, responsibilities and obligations for pre-distribution periods and for potential taxes on the spin-off of PMI by Altria. With respect to any potential tax resulting from the spin-off of PMI by Altria, responsibility for the tax will be allocated to the party that acted (or failed to act) in a manner that resulted in the tax. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance at January 1, | $ | 124 | $ | 104 | $ | 95 | ||||||
Additions based on tax positions related to the current year | 15 | 9 | 17 | |||||||||
Additions for tax positions of previous years | 3 | 309 | 8 | |||||||||
Reductions for tax positions of prior years | (2 | ) | (1 | ) | (8 | ) | ||||||
Reductions due to lapse of statute of limitations | (16 | ) | — | (7 | ) | |||||||
Settlements | (10 | ) | (297 | ) | — | |||||||
Other | — | — | (1 | ) | ||||||||
Balance at December 31, | $ | 114 | $ | 124 | $ | 104 | ||||||
During 2012, PMI recorded additions to the unrecognized tax benefits liability for tax positions of previous years of $309 million. Included in this amount is $287 million, which is related to the conclusion of the IRS examination of Altria's consolidated tax returns for the years 2004-2006. The settlement with the IRS resulted in a reduction of the unrecognized tax benefits liability of $296 million in the | ||||||||||||
same period (reflected in the $297 million of settlements in the table above). After consideration of the impact of the settlement on repatriation costs for subsequent tax years as well as interest costs, the net impact on the 2012 effective tax rate was $79 million, as noted below. | ||||||||||||
Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: | ||||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||
Unrecognized tax benefits | $ | 114 | $ | 124 | $ | 104 | ||||||
Accrued interest and penalties | 24 | 37 | 28 | |||||||||
Tax credits and other indirect benefits | (56 | ) | (72 | ) | (55 | ) | ||||||
Liability for tax contingencies | $ | 82 | $ | 89 | $ | 77 | ||||||
The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $56 million at December 31, 2013. The remainder, if recognized, would principally affect deferred taxes. | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, PMI recognized (expense) income in its consolidated statements of earnings of $10 million, $(65) million and less than $1 million, respectively, related to interest and penalties. | ||||||||||||
PMI is regularly examined by tax authorities around the world and is currently under examination in a number of jurisdictions. The U.S. federal statute of limitations remains open for the years 2007 and onward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three to five years. Years still open to examination by foreign tax authorities in major jurisdictions include Germany (2007 onward), Indonesia (2008 onward), Russia (2010 onward) and Switzerland (2012 onward). | ||||||||||||
It is reasonably possible that within the next twelve 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. | ||||||||||||
54 | ||||||||||||
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, 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (decrease) resulting from: | ||||||||||||
Foreign rate differences | (12.2 | ) | (11.8 | ) | (12.5 | ) | ||||||
Dividend repatriation cost | 6.6 | 6 | 6.5 | |||||||||
Other | (0.1 | ) | 0.3 | 0.1 | ||||||||
Effective tax rate | 29.3 | % | 29.5 | % | 29.1 | % | ||||||
The American Taxpayer Relief Act of 2012 (the “Act”) was enacted on January 2, 2013. Included in the Act were extensions through 2013 of several expired or expiring temporary business tax provisions, commonly referred to as “extenders.” The tax impact of new legislation is recognized in the reporting period in which it is enacted. Therefore, PMI recognized the impact of the Act, which was $17 million of expense, in the consolidated financial statements in the first quarter of 2013. | ||||||||||||
The 2013 effective tax rate decreased 0.2 percentage points to 29.3%. The 2013 effective tax rate was unfavorably impacted by the additional expense associated with the Act ($17 million) and the enactment of tax law changes in Mexico ($14 million). Excluding these special tax items, the change in the effective tax rate for the year ended December 31, 2013, was primarily due to earnings mix and repatriation cost differences. | ||||||||||||
The 2012 effective tax rate increased 0.4 percentage points to 29.5%. The 2012 effective tax rate was unfavorably impacted by an additional income tax provision of $79 million following the conclusion of the IRS examination of Altria's consolidated tax returns for the years 2004-2006, partially offset by a $40 million benefit from a tax accounting method change in Germany. Prior to March 28, 2008, PMI was a wholly owned subsidiary of Altria. | ||||||||||||
The 2011 effective tax rate increased 1.7 percentage points to 29.1%. The 2011 effective tax rate was favorably impacted by an enacted decrease in corporate income tax rates in Greece ($11 million) and the reversal of a valuation allowance in Brazil ($15 million). | ||||||||||||
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) | 2013 | 2012 | ||||||||||
Deferred income tax assets: | ||||||||||||
Accrued postretirement and postemployment benefits | $ | 264 | $ | 279 | ||||||||
Accrued pension costs | 135 | 262 | ||||||||||
Inventory | 170 | 135 | ||||||||||
Accrued liabilities | 139 | 150 | ||||||||||
Foreign exchange | 146 | 52 | ||||||||||
Other | 144 | 139 | ||||||||||
Total deferred income tax assets | 998 | 1,017 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Trade names | (738 | ) | (816 | ) | ||||||||
Property, plant and equipment | (311 | ) | (320 | ) | ||||||||
Unremitted earnings | (735 | ) | (845 | ) | ||||||||
Total deferred income tax liabilities | (1,784 | ) | (1,981 | ) | ||||||||
Net deferred income tax liabilities | $ | (786 | ) | $ | (964 | ) |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting: | ||||||||||||
PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. Reportable segments for PMI are organized and managed by geographic region. PMI’s reportable segments are European Union; Eastern Europe, Middle East & Africa; Asia, and Latin America & Canada. PMI records net revenues and operating companies income to its segments based upon the geographic area in which the customer resides. | ||||||||||||
PMI’s management evaluates segment performance and allocates resources based on operating companies income, which PMI defines as operating income, excluding general corporate expenses and amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. Interest expense, net, and provision for income taxes are centrally managed; accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management. Information about total assets by segment is not disclosed because such information is not reported to or used by PMI’s chief operating decision maker. Segment goodwill and other intangible assets, net, are disclosed in Note 3. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies. | ||||||||||||
Segment data were as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Net revenues: | ||||||||||||
European Union | $ | 28,303 | $ | 27,338 | $ | 29,768 | ||||||
Eastern Europe, Middle East & Africa | 20,695 | 19,272 | 17,452 | |||||||||
Asia | 20,987 | 21,071 | 19,590 | |||||||||
Latin America & Canada | 10,044 | 9,712 | 9,536 | |||||||||
Net revenues(1) | $ | 80,029 | $ | 77,393 | $ | 76,346 | ||||||
Earnings before income taxes: | ||||||||||||
Operating companies income: | ||||||||||||
European Union | $ | 4,238 | $ | 4,187 | $ | 4,560 | ||||||
Eastern Europe, Middle East & Africa | 3,779 | 3,726 | 3,229 | |||||||||
Asia | 4,622 | 5,197 | 4,836 | |||||||||
Latin America & Canada | 1,134 | 1,043 | 988 | |||||||||
Amortization of intangibles | (93 | ) | (97 | ) | (98 | ) | ||||||
General corporate expenses | (187 | ) | (210 | ) | (183 | ) | ||||||
Less: | ||||||||||||
Equity (income)/loss in unconsolidated subsidiaries, net | 22 | 17 | 10 | |||||||||
Operating income | 13,515 | 13,863 | 13,342 | |||||||||
Interest expense, net | (973 | ) | (859 | ) | (800 | ) | ||||||
Earnings before income taxes | $ | 12,542 | $ | 13,004 | $ | 12,542 | ||||||
(1) Total net revenues attributable to customers located in Germany, PMI’s largest market in terms of net revenues, were $7.8 billion, $7.7 billion and $8.1 billion for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
55 | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Depreciation expense: | ||||||||||||
European Union | $ | 190 | $ | 181 | $ | 210 | ||||||
Eastern Europe, Middle East & Africa | 227 | 211 | 227 | |||||||||
Asia | 277 | 315 | 358 | |||||||||
Latin America & Canada | 85 | 84 | 90 | |||||||||
779 | 791 | 885 | ||||||||||
Other | 10 | 10 | 10 | |||||||||
Total depreciation expense | $ | 789 | $ | 801 | $ | 895 | ||||||
Capital expenditures: | ||||||||||||
European Union | $ | 480 | $ | 391 | $ | 382 | ||||||
Eastern Europe, Middle East & Africa | 247 | 197 | 133 | |||||||||
Asia | 317 | 277 | 208 | |||||||||
Latin America & Canada | 156 | 127 | 140 | |||||||||
1,200 | 992 | 863 | ||||||||||
Other | — | 64 | 34 | |||||||||
Total capital expenditures | $ | 1,200 | $ | 1,056 | $ | 897 | ||||||
At December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Long-lived assets: | ||||||||||||
European Union | $ | 3,403 | $ | 3,065 | $ | 2,938 | ||||||
Eastern Europe, Middle East & Africa | 1,265 | 1,215 | 1,094 | |||||||||
Asia | 1,758 | 1,824 | 1,681 | |||||||||
Latin America & Canada | 759 | 719 | 678 | |||||||||
7,185 | 6,823 | 6,391 | ||||||||||
Other | 208 | 139 | 146 | |||||||||
Total long-lived assets | $ | 7,393 | $ | 6,962 | $ | 6,537 | ||||||
Long-lived assets consist of non-current assets other than goodwill; other intangible assets, net; deferred tax assets, and investments in unconsolidated subsidiaries. PMI’s largest market in terms of long-lived assets is Switzerland. Total long-lived assets located in Switzerland, which is reflected in the European Union segment above, were $1.1 billion, $1.1 billion and $1.0 billion at December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Items affecting the comparability of results from operations were as follows: | ||||||||||||
• | Asset Impairment and Exit Costs - See Note 5. Asset Impairment and Exit Costs for a breakdown of asset impairment and exit costs by segment. | |||||||||||
• | Acquisitions and Other Business Arrangements - For further details, see Note 6. Acquisitions and Other Business Arrangements. |
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | |||||||||||||||||||||||
Benefit Plans | ' | |||||||||||||||||||||||
Benefit Plans: | ||||||||||||||||||||||||
Pension coverage for employees of PMI’s subsidiaries is provided, to the extent deemed appropriate, through separate plans, many of which are governed by local statutory requirements. In addition, PMI provides health care and other benefits to substantially all U.S. retired employees and certain non-U.S. retired employees. In general, health care benefits for non-U.S. retired employees are covered through local government plans. | ||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||
The benefit obligations, plan assets and funded status of PMI’s pension plans at December 31, 2013 and 2012, were as follows: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Benefit obligation at January 1, | $ | 383 | $ | 352 | $ | 7,262 | $ | 5,625 | ||||||||||||||||
Service cost | 7 | 6 | 255 | 189 | ||||||||||||||||||||
Interest cost | 16 | 16 | 169 | 189 | ||||||||||||||||||||
Benefits paid | (13 | ) | (16 | ) | (156 | ) | (160 | ) | ||||||||||||||||
Termination, settlement and curtailment | — | — | (3 | ) | (8 | ) | ||||||||||||||||||
Assumption changes | (45 | ) | 28 | (894 | ) | 1,176 | ||||||||||||||||||
Actuarial losses (gains) | 16 | (3 | ) | 76 | 41 | |||||||||||||||||||
Currency | — | — | 141 | 167 | ||||||||||||||||||||
Other | — | — | 43 | 43 | ||||||||||||||||||||
Benefit obligation at December 31, | 364 | 383 | 6,893 | 7,262 | ||||||||||||||||||||
Fair value of plan assets at January 1, | 284 | 269 | 5,627 | 4,778 | ||||||||||||||||||||
Actual return on plan assets | 33 | 27 | 731 | 625 | ||||||||||||||||||||
Employer contributions | 1 | 4 | 149 | 203 | ||||||||||||||||||||
Employee contributions | — | — | 47 | 47 | ||||||||||||||||||||
Benefits paid | (13 | ) | (16 | ) | (156 | ) | (160 | ) | ||||||||||||||||
Termination, settlement and curtailment | — | — | (2 | ) | (5 | ) | ||||||||||||||||||
Currency | — | — | 170 | 139 | ||||||||||||||||||||
Fair value of plan assets at December 31, | 305 | 284 | 6,566 | 5,627 | ||||||||||||||||||||
Net pension liability recognized at December 31, | $ | (59 | ) | $ | (99 | ) | $ | (327 | ) | $ | (1,635 | ) | ||||||||||||
At December 31, 2013 and 2012, the Swiss pension plan represented 58% of the non-U.S. benefit obligation and approximately 60% of the non-U.S. fair value of plan assets, respectively. | ||||||||||||||||||||||||
56 | ||||||||||||||||||||||||
At December 31, 2013 and 2012, the combined U.S. and non-U.S. pension plans resulted in a net pension liability of $386 million and $1,734 million, respectively. These amounts were recognized in PMI’s consolidated balance sheets at December 31, 2013 and 2012, as follows: | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||
Other assets | $ | 151 | $ | 29 | ||||||||||||||||||||
Accrued liabilities — employment costs | (55 | ) | (22 | ) | ||||||||||||||||||||
Long-term employment costs | (482 | ) | (1,741 | ) | ||||||||||||||||||||
$ | (386 | ) | $ | (1,734 | ) | |||||||||||||||||||
The accumulated benefit obligation, which represents benefits earned to date, for the U.S. pension plans was $339 million and $354 million at December 31, 2013 and 2012, respectively. The accumulated benefit obligation for non-U.S. pension plans was $6,257 million and $6,469 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
For U.S. pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation and accumulated benefit obligation were $86 million and $77 million, respectively, as of December 31, 2013. The projected benefit obligation and accumulated benefit obligation were $86 million and $78 million, respectively, as of December 31, 2012. The underfunding relates to plans for salaried employees that cannot be funded under IRS regulations. For non-U.S. plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were $1,429 million, $1,295 million, and $1,034 million, respectively, as of December 31, 2013, and $6,786 million, $6,058 million, and $5,162 million, respectively, as of December 31, 2012. | ||||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s benefit obligations at December 31: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4.8 | % | 4.05 | % | 3.09 | % | 2.38 | % | ||||||||||||||||
Rate of compensation increase | 3 | 3.5 | 2.34 | 2.61 | ||||||||||||||||||||
The discount rate for the largest U.S. and non-U.S. 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 non-U.S. 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 cost consisted of the following for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 5 | $ | 255 | $ | 189 | $ | 178 | ||||||||||||
Interest cost | 16 | 16 | 16 | 169 | 189 | 205 | ||||||||||||||||||
Expected return on plan assets | (16 | ) | (15 | ) | (15 | ) | (347 | ) | (320 | ) | (323 | ) | ||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | 11 | 9 | 5 | 205 | 120 | 58 | ||||||||||||||||||
Prior service cost | 1 | 1 | 1 | 9 | 9 | 8 | ||||||||||||||||||
Net transition obligation | — | — | — | — | 1 | 1 | ||||||||||||||||||
Termination, settlement and curtailment | — | 2 | 2 | 1 | — | 1 | ||||||||||||||||||
Net periodic pension cost | $ | 19 | $ | 19 | $ | 14 | $ | 292 | $ | 188 | $ | 128 | ||||||||||||
Termination, settlement and curtailment charges were due primarily to early retirement programs. | ||||||||||||||||||||||||
For the combined U.S. and non-U.S. pension plans, the estimated net loss and prior service cost that are expected to be amortized from accumulated other comprehensive earnings into net periodic benefit cost during 2014 are $117 million and $7 million, respectively. | ||||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s net pension cost: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.05 | % | 4.5 | % | 5.4 | % | 2.38 | % | 3.4 | % | 4 | % | ||||||||||||
Expected rate of return on plan assets | 5.7 | 5.7 | 6.25 | 6.11 | 6.21 | 6.21 | ||||||||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | 2.61 | 2.66 | 2.9 | ||||||||||||||||||
PMI’s expected rate of return on 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 $69 million, $66 million and $61 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||
PMI’s investment strategy for U.S. and non-U.S. 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 a 60%/40% split between equity and debt securities. The strategy primarily utilizes indexed U.S. equity securities, international equity securities and investment-grade debt securities. PMI’s plans have no investments in hedge funds, private equity or derivatives. PMI attempts to | ||||||||||||||||||||||||
57 | ||||||||||||||||||||||||
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, 2013 and 2012, by asset category was as follows: | ||||||||||||||||||||||||
Asset Category | At December 31, 2013 | Quoted Prices | Significant | Significant | ||||||||||||||||||||
(in millions) | In Active | Other | Unobservable | |||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets/Liabilities | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 608 | $ | 608 | $ | — | $ | — | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. securities | 119 | 119 | — | — | ||||||||||||||||||||
International securities | 1,280 | 1,280 | — | — | ||||||||||||||||||||
Investment funds(a) | 4,508 | 2,805 | 1,703 | — | ||||||||||||||||||||
International government bonds | 317 | 313 | 4 | — | ||||||||||||||||||||
Corporate bonds | 2 | 2 | — | — | ||||||||||||||||||||
Other | 37 | 37 | — | — | ||||||||||||||||||||
Total | $ | 6,871 | $ | 5,164 | $ | 1,707 | $ | — | ||||||||||||||||
(a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 61% are invested in U.S. and international equities; 24% are invested in U.S. and international government bonds; 8% are invested in corporate bonds, and 7% are invested in real estate and other money markets. | ||||||||||||||||||||||||
Asset Category | At December 31, 2012 | Quoted Prices | Significant | Significant | ||||||||||||||||||||
(in millions) | In Active | Other | Unobservable | |||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets/Liabilities | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 420 | $ | 420 | $ | — | $ | — | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. securities | 106 | 106 | — | — | ||||||||||||||||||||
International securities | 1,129 | 1,129 | — | — | ||||||||||||||||||||
Investment funds(b)(c) | 3,805 | 2,313 | 1,492 | — | ||||||||||||||||||||
International government bonds | 411 | 411 | — | — | ||||||||||||||||||||
Corporate bonds | 3 | 3 | — | — | ||||||||||||||||||||
Other | 37 | 37 | — | — | ||||||||||||||||||||
Total | $ | 5,911 | $ | 4,419 | $ | 1,492 | $ | — | ||||||||||||||||
(b) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 60% are invested in U.S. and international equities; 24% are invested in U.S. and international government bonds; 9% are invested in corporate bonds, and 7% are invested in real estate and other money markets. | ||||||||||||||||||||||||
(c) Mutual funds in the amount of $1,363 million were transferred from Level 2 to Level 1 because they are actively traded on a daily basis. | ||||||||||||||||||||||||
See Note 16. Fair Value Measurements for a discussion of the fair value of pension plan assets. | ||||||||||||||||||||||||
PMI makes, and plans to make, contributions, to the extent that they are tax deductible and to meet specific funding requirements of its funded U.S. and non-U.S. plans. Currently, PMI anticipates making contributions of approximately $171 million in 2014 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 rates. | ||||||||||||||||||||||||
The estimated future benefit payments from PMI pension plans at December 31, 2013, are as follows: | ||||||||||||||||||||||||
(in millions) | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2014 | $ | 48 | $ | 246 | ||||||||||||||||||||
2015 | 18 | 255 | ||||||||||||||||||||||
2016 | 18 | 250 | ||||||||||||||||||||||
2017 | 21 | 260 | ||||||||||||||||||||||
2018 | 19 | 276 | ||||||||||||||||||||||
2019 - 2023 | 119 | 1,576 | ||||||||||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||||||||
Net postretirement health care costs consisted of the following for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Service cost | $ | 3 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | ||||||||||||
Interest cost | 5 | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | 3 | 2 | 1 | 2 | 1 | 1 | ||||||||||||||||||
Net postretirement health care costs | $ | 11 | $ | 9 | $ | 8 | $ | 9 | $ | 8 | $ | 8 | ||||||||||||
The following weighted-average assumptions were used to determine PMI’s net postretirement costs for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.05 | % | 4.5 | % | 5.4 | % | 4.59 | % | 5.45 | % | 5.14 | % | ||||||||||||
Health care cost trend rate | 7.5 | 7.5 | 8 | 6.46 | 6.55 | 6.29 | ||||||||||||||||||
PMI’s postretirement health care plans are not funded. The changes in the accumulated benefit obligation and net amount accrued at December 31, 2013 and 2012, were as follows: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Accumulated postretirement benefit obligation at January 1, | $ | 132 | $ | 115 | $ | 113 | $ | 96 | ||||||||||||||||
Service cost | 3 | 2 | 2 | 2 | ||||||||||||||||||||
Interest cost | 5 | 5 | 5 | 5 | ||||||||||||||||||||
Benefits paid | (5 | ) | (4 | ) | (5 | ) | (5 | ) | ||||||||||||||||
Assumption changes | (23 | ) | 10 | (5 | ) | 11 | ||||||||||||||||||
Actuarial losses (gains) | 1 | 4 | (3 | ) | 6 | |||||||||||||||||||
Plan changes | — | — | (1 | ) | (3 | ) | ||||||||||||||||||
Currency | — | — | (6 | ) | 1 | |||||||||||||||||||
Accumulated postretirement benefit obligation at December 31, | $ | 113 | $ | 132 | $ | 100 | $ | 113 | ||||||||||||||||
58 | ||||||||||||||||||||||||
The current portion of PMI’s accrued postretirement health care costs of$11 million at December 31, 2013 and December 31, 2012, is included in accrued employment costs on the consolidated balance sheet. | ||||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s postretirement benefit obligations at December 31, 2013 and 2012: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4.95 | % | 4.05 | % | 5.07 | % | 4.59 | % | ||||||||||||||||
Health care cost trend rate assumed for next year | 7 | 7.5 | 6.14 | 6.46 | ||||||||||||||||||||
Ultimate trend rate | 5 | 5 | 4.87 | 4.88 | ||||||||||||||||||||
Year that rate reaches the ultimate trend rate | 2018 | 2018 | 2029 | 2029 | ||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care trend rates would have the following effects as of December 31, 2013: | ||||||||||||||||||||||||
One-Percentage-Point Increase | One-Percentage-Point Decrease | |||||||||||||||||||||||
Effect on total service and interest cost | 18.2 | % | (14.0 | )% | ||||||||||||||||||||
Effect on postretirement benefit obligation | 14.1 | (11.6 | ) | |||||||||||||||||||||
PMI’s estimated future benefit payments for its postretirement health care plans at December 31, 2013, are as follows: | ||||||||||||||||||||||||
(in millions) | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2014 | $ | 5 | $ | 6 | ||||||||||||||||||||
2015 | 5 | 5 | ||||||||||||||||||||||
2016 | 6 | 5 | ||||||||||||||||||||||
2017 | 6 | 5 | ||||||||||||||||||||||
2018 | 6 | 5 | ||||||||||||||||||||||
2019 - 2023 | 33 | 26 | ||||||||||||||||||||||
Postemployment Benefit Plans | ||||||||||||||||||||||||
PMI and certain of its subsidiaries sponsor postemployment benefit plans covering substantially all salaried and certain hourly employees. The cost of these plans is charged to expense over the working life of the covered employees. Net postemployment costs consisted of the following: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Service cost | $ | 34 | $ | 30 | $ | 28 | ||||||||||||||||||
Interest cost | 20 | 22 | 22 | |||||||||||||||||||||
Amortization of net loss | 60 | 53 | 39 | |||||||||||||||||||||
Other expense | 84 | 75 | 106 | |||||||||||||||||||||
Net postemployment costs | $ | 198 | $ | 180 | $ | 195 | ||||||||||||||||||
During 2013, 2012 and 2011, certain salaried employees left PMI under separation programs. These programs resulted in incremental postemployment costs, which are included in other expense, above. | ||||||||||||||||||||||||
The estimated net loss for the postemployment benefit plans that will be amortized from accumulated other comprehensive losses into net postemployment costs during 2014 is approximately $66 million. | ||||||||||||||||||||||||
The changes in the benefit obligations of the plans at December 31, 2013 and 2012, were as follows: | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||
Accrued postemployment costs at January 1, | $ | 682 | $ | 619 | ||||||||||||||||||||
Service cost | 34 | 30 | ||||||||||||||||||||||
Interest cost | 20 | 22 | ||||||||||||||||||||||
Benefits paid | (173 | ) | (196 | ) | ||||||||||||||||||||
Actuarial losses | 109 | 129 | ||||||||||||||||||||||
Other | 91 | 78 | ||||||||||||||||||||||
Accrued postemployment costs at December 31, | $ | 763 | $ | 682 | ||||||||||||||||||||
The accrued postemployment costs were determined using a weighted-average discount rate of 5.5% and 4.4% in 2013 and 2012, respectively; an assumed ultimate annual weighted-average turnover rate of 2.2% and 2.1% in 2013 and 2012, respectively; assumed compensation cost increases of 3.8% in 2013 and 3.9% in 2012 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 shown above are presented net of the related assets of $33 million and $28 million at December 31, 2013 and 2012, 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, 2013, consisted of the following: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Net losses | $ | (1,746 | ) | $ | (47 | ) | $ | (661 | ) | $ | (2,454 | ) | ||||||||||||
Prior service cost | (51 | ) | 7 | — | (44 | ) | ||||||||||||||||||
Net transition obligation | (6 | ) | — | — | (6 | ) | ||||||||||||||||||
Deferred income taxes | 245 | 14 | 199 | 458 | ||||||||||||||||||||
Losses to be amortized | $ | (1,558 | ) | $ | (26 | ) | $ | (462 | ) | $ | (2,046 | ) | ||||||||||||
The amounts recorded in accumulated other comprehensive losses at December 31, 2012, consisted of the following: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Net losses | $ | (3,199 | ) | $ | (82 | ) | $ | (612 | ) | $ | (3,893 | ) | ||||||||||||
Prior service cost | (60 | ) | 7 | — | (53 | ) | ||||||||||||||||||
Net transition obligation | (7 | ) | — | — | (7 | ) | ||||||||||||||||||
Deferred income taxes | 377 | 26 | 185 | 588 | ||||||||||||||||||||
Losses to be amortized | $ | (2,889 | ) | $ | (49 | ) | $ | (427 | ) | $ | (3,365 | ) | ||||||||||||
59 | ||||||||||||||||||||||||
The amounts recorded in accumulated other comprehensive losses at December 31, 2011, consisted of the following: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Net losses | $ | (2,401 | ) | $ | (54 | ) | $ | (536 | ) | $ | (2,991 | ) | ||||||||||||
Prior service cost | (70 | ) | 3 | — | (67 | ) | ||||||||||||||||||
Net transition obligation | (8 | ) | — | — | (8 | ) | ||||||||||||||||||
Deferred income taxes | 299 | 19 | 163 | 481 | ||||||||||||||||||||
Losses to be amortized | $ | (2,180 | ) | $ | (32 | ) | $ | (373 | ) | $ | (2,585 | ) | ||||||||||||
The movements in other comprehensive earnings (losses) during the year ended December 31, 2013, were as follows: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Amounts transferred to earnings as components of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | $ | 216 | $ | 5 | $ | 60 | $ | 281 | ||||||||||||||||
Prior service cost | 10 | — | — | 10 | ||||||||||||||||||||
Net transition obligation | — | — | — | — | ||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||
Net losses | 1 | — | — | 1 | ||||||||||||||||||||
Deferred income taxes | (29 | ) | (2 | ) | (18 | ) | (49 | ) | ||||||||||||||||
198 | 3 | 42 | 243 | |||||||||||||||||||||
Other movements during the year: | ||||||||||||||||||||||||
Net losses | 1,236 | 30 | (109 | ) | 1,157 | |||||||||||||||||||
Prior service cost | (1 | ) | — | — | (1 | ) | ||||||||||||||||||
Net transition obligation | 1 | — | — | 1 | ||||||||||||||||||||
Deferred income taxes | (103 | ) | (10 | ) | 32 | (81 | ) | |||||||||||||||||
1,133 | 20 | (77 | ) | 1,076 | ||||||||||||||||||||
Total movements in other comprehensive earnings (losses) | $ | 1,331 | $ | 23 | $ | (35 | ) | $ | 1,319 | |||||||||||||||
The movements in other comprehensive earnings (losses) during the year ended December 31, 2012, were as follows: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Amounts transferred to earnings as components of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | $ | 129 | $ | 3 | $ | 53 | $ | 185 | ||||||||||||||||
Prior service cost | 10 | — | — | 10 | ||||||||||||||||||||
Net transition obligation | 1 | — | — | 1 | ||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||
Net losses | 4 | — | — | 4 | ||||||||||||||||||||
Deferred income taxes | (20 | ) | (1 | ) | (16 | ) | (37 | ) | ||||||||||||||||
124 | 2 | 37 | 163 | |||||||||||||||||||||
Other movements during the year: | ||||||||||||||||||||||||
Net losses | (931 | ) | (31 | ) | (129 | ) | (1,091 | ) | ||||||||||||||||
Prior service cost | — | 4 | — | 4 | ||||||||||||||||||||
Deferred income taxes | 98 | 8 | 38 | 144 | ||||||||||||||||||||
(833 | ) | (19 | ) | (91 | ) | (943 | ) | |||||||||||||||||
Total movements in other comprehensive losses | $ | (709 | ) | $ | (17 | ) | $ | (54 | ) | $ | (780 | ) | ||||||||||||
The movements in other comprehensive earnings (losses) during the year ended December 31, 2011, were as follows: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Amounts transferred to earnings as components of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | $ | 63 | $ | 3 | $ | 39 | $ | 105 | ||||||||||||||||
Prior service cost | 9 | (1 | ) | — | 8 | |||||||||||||||||||
Net transition obligation | 1 | — | — | 1 | ||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||
Net losses | 3 | — | — | 3 | ||||||||||||||||||||
Deferred income taxes | (10 | ) | (1 | ) | (12 | ) | (23 | ) | ||||||||||||||||
66 | 1 | 27 | 94 | |||||||||||||||||||||
Other movements during the year: | ||||||||||||||||||||||||
Net losses | (1,042 | ) | (11 | ) | (107 | ) | (1,160 | ) | ||||||||||||||||
Prior service cost | (17 | ) | — | — | (17 | ) | ||||||||||||||||||
Deferred income taxes | 110 | 5 | 33 | 148 | ||||||||||||||||||||
(949 | ) | (6 | ) | (74 | ) | (1,029 | ) | |||||||||||||||||
Total movements in other comprehensive losses | $ | (883 | ) | $ | (5 | ) | $ | (47 | ) | $ | (935 | ) | ||||||||||||
60 |
Additional_Information
Additional Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Additional Information [Abstract] | ' | |||||||||||
Additional Information | ' | |||||||||||
Additional Information: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Research and development expense | $ | 449 | $ | 415 | $ | 413 | ||||||
Advertising expense | $ | 435 | $ | 483 | $ | 464 | ||||||
Interest expense | $ | 1,104 | $ | 1,007 | $ | 934 | ||||||
Interest income | (131 | ) | (148 | ) | (134 | ) | ||||||
Interest expense, net | $ | 973 | $ | 859 | $ | 800 | ||||||
Rent expense | $ | 334 | $ | 318 | $ | 308 | ||||||
Minimum rental commitments under non-cancelable operating leases in effect at December 31, 2013, were as follows: | ||||||||||||
(in millions) | ||||||||||||
2014 | $ | 218 | ||||||||||
2015 | 160 | |||||||||||
2016 | 124 | |||||||||||
2017 | 81 | |||||||||||
2018 | 52 | |||||||||||
Thereafter | 211 | |||||||||||
$ | 846 | |||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||
Financial Instruments: | |||||||||||||||||||||||||||
Overview | |||||||||||||||||||||||||||
PMI operates in markets outside of the United States of America, with manufacturing and sales facilities in various locations around the world. PMI utilizes certain financial instruments to manage foreign currency and interest rate exposure. Derivative financial instruments are used by PMI principally to reduce exposures to market risks resulting from fluctuations in foreign currency exchange rates by creating offsetting exposures. PMI is not a party to leveraged derivatives and, by policy, does not use derivative financial instruments for speculative purposes. Financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. PMI formally documents the nature and relationships between the hedging instruments and hedged items, as well as its risk-management objectives, strategies for undertaking the various hedge transactions and method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, the significant characteristics and expected terms of the forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction will occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss would be recognized in earnings. PMI reports its net transaction gains or losses in marketing, administration and research costs on the consolidated statements of earnings. | |||||||||||||||||||||||||||
PMI uses deliverable and non-deliverable forward foreign exchange contracts, foreign currency swaps and foreign currency options, collectively referred to as foreign exchange contracts, to mitigate its exposure to changes in exchange and interest rates from third-party and intercompany actual and forecasted transactions. The primary currencies to which PMI is exposed include the Australian dollar, Euro, Indonesian rupiah, Japanese yen, Mexican peso, Russian ruble, Swiss franc and Turkish lira. At December 31, 2013 and 2012, PMI had contracts with aggregate notional amounts of $16.8 billion and $13.7 billion, respectively. Of the $16.8 billion aggregate notional amount at December 31, 2013, $2.3 billion related to cash flow hedges, $3.3 billion related to hedges of net investments in foreign operations and $11.2 billion related to other derivatives that primarily offset currency exposures on intercompany financing. Of the $13.7 billion aggregate notional amount at December 31, 2012, $2.7 billion related to cash flow hedges, $1.1 billion related to hedges of net investments in foreign operations and $9.9 billion related to other derivatives that primarily offset currency exposures on intercompany financing. | |||||||||||||||||||||||||||
61 | |||||||||||||||||||||||||||
The fair value of PMI’s foreign exchange contracts included in the consolidated balance sheet as of December 31, 2013 and 2012, were as follows: | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||
(in millions) | Balance Sheet Classification | 2013 | 2012 | Balance Sheet Classification | 2013 | 2012 | |||||||||||||||||||||
Foreign exchange contracts designated as hedging instruments | Other current | $ | 111 | $ | 146 | Other accrued | $ | 44 | $ | 8 | |||||||||||||||||
assets | liabilities | ||||||||||||||||||||||||||
Other assets | — | — | Other liabilities | 46 | — | ||||||||||||||||||||||
Foreign exchange contracts not designated as hedging instruments | Other current | 42 | 14 | Other accrued | 12 | 47 | |||||||||||||||||||||
assets | liabilities | ||||||||||||||||||||||||||
Other liabilities | 14 | — | |||||||||||||||||||||||||
Total derivatives | $ | 153 | $ | 160 | $ | 116 | $ | 55 | |||||||||||||||||||
Hedging activities, which represent movement in derivatives as well as the respective underlying transactions, had the following effect on PMI’s consolidated statements of earnings and other comprehensive earnings: | |||||||||||||||||||||||||||
: | |||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||
(in millions) | Cash Flow | Net Investment | Other | Income | Total | ||||||||||||||||||||||
Hedges | Hedges | Derivatives | Taxes | ||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||||||||
Net revenues | $ | 319 | $ | — | $ | 319 | |||||||||||||||||||||
Cost of sales | 6 | — | 6 | ||||||||||||||||||||||||
Marketing, administration and research costs | — | 1 | 1 | ||||||||||||||||||||||||
Operating income | 325 | 1 | 326 | ||||||||||||||||||||||||
Interest expense, net | (56 | ) | 3 | (53 | ) | ||||||||||||||||||||||
Earnings before income taxes | 269 | 4 | 273 | ||||||||||||||||||||||||
Provision for income taxes | (34 | ) | 2 | (32 | ) | ||||||||||||||||||||||
Net earnings attributable to PMI | $ | 235 | $ | 6 | $ | 241 | |||||||||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||||||||
Gains transferred to earnings | $ | (269 | ) | $ | 34 | $ | (235 | ) | |||||||||||||||||||
Recognized gains | 236 | (30 | ) | 206 | |||||||||||||||||||||||
Net impact on equity | $ | (33 | ) | $ | 4 | $ | (29 | ) | |||||||||||||||||||
Currency translation adjustments | $ | (79 | ) | $ | 27 | $ | (52 | ) | |||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||
(in millions) | Cash Flow | Net Investment | Other | Income | Total | ||||||||||||||||||||||
Hedges | Hedges | Derivatives | Taxes | ||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||||||||
Net revenues | $ | 66 | $ | — | $ | 66 | |||||||||||||||||||||
Cost of sales | 19 | — | 19 | ||||||||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||||||||
Operating income | 85 | — | 85 | ||||||||||||||||||||||||
Interest expense, net | (60 | ) | 14 | (46 | ) | ||||||||||||||||||||||
Earnings before income taxes | 25 | 14 | 39 | ||||||||||||||||||||||||
Provision for income taxes | (3 | ) | 1 | (2 | ) | ||||||||||||||||||||||
Net earnings attributable to PMI | $ | 22 | $ | 15 | $ | 37 | |||||||||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||||||||
Gains transferred to earnings | $ | (25 | ) | $ | 3 | $ | (22 | ) | |||||||||||||||||||
Recognized gains | 113 | (14 | ) | 99 | |||||||||||||||||||||||
Net impact on equity | $ | 88 | $ | (11 | ) | $ | 77 | ||||||||||||||||||||
Currency translation adjustments | $ | (19 | ) | $ | 5 | $ | (14 | ) | |||||||||||||||||||
62 | |||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||
(in millions) | Cash | Net | Other | Income | Total | ||||||||||||||||||||||
Flow | Investment | Derivatives | Taxes | ||||||||||||||||||||||||
Hedges | Hedges | ||||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||||||||
Net revenues | $ | (17 | ) | $ | — | $ | (17 | ) | |||||||||||||||||||
Cost of sales | 34 | — | 34 | ||||||||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||||||||
Operating income | 17 | — | 17 | ||||||||||||||||||||||||
Interest expense, net | (37 | ) | 56 | 19 | |||||||||||||||||||||||
Earnings before income taxes | (20 | ) | 56 | 36 | |||||||||||||||||||||||
Provision for income taxes | 2 | (13 | ) | (11 | ) | ||||||||||||||||||||||
Net earnings attributable to PMI | $ | (18 | ) | $ | 43 | $ | 25 | ||||||||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||||||||
Losses transferred to earnings | $ | 20 | $ | (2 | ) | $ | 18 | ||||||||||||||||||||
Recognized losses | (4 | ) | (1 | ) | (5 | ) | |||||||||||||||||||||
Net impact on equity | $ | 16 | $ | (3 | ) | $ | 13 | ||||||||||||||||||||
Currency translation adjustments | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||
Each type of hedging activity is described in greater detail below. | |||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||
PMI has entered into foreign exchange contracts to hedge foreign currency exchange risk related to certain forecasted transactions. The effective portion of gains and losses associated with qualifying cash flow hedge contracts is deferred as a component of accumulated other comprehensive losses until the underlying hedged transactions are reported in PMI’s consolidated statements of earnings. During the years ended December 31, 2013, 2012 and 2011, ineffectiveness related to cash flow hedges was not material. As of December 31, 2013, PMI has hedged forecasted transactions for periods not exceeding the next twelve months. The impact of these hedges is included in operating cash flows on PMI’s consolidated statement of cash flows. | |||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, foreign exchange contracts that were designated as cash flow hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||||||||
(pre-tax, in millions) | For the Years Ended December 31, | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||||||||
Classification of Gain/(Loss) | Reclassified from Other | Recognized in Other | |||||||||||||||||||||||||
Reclassified from Other | Comprehensive Earnings/(Losses) into Earnings | Comprehensive | |||||||||||||||||||||||||
Comprehensive Earnings/(Losses) into Earnings | Earnings/(Losses) on Derivatives | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Foreign exchange contracts | $ | 236 | $ | 113 | $ | (4 | ) | ||||||||||||||||||||
Net revenues | $ | 319 | $ | 66 | $ | (17 | ) | ||||||||||||||||||||
Cost of sales | 6 | 19 | 34 | ||||||||||||||||||||||||
Interest expense, net | (56 | ) | (60 | ) | (37 | ) | |||||||||||||||||||||
Total | $ | 269 | $ | 25 | $ | (20 | ) | $ | 236 | $ | 113 | $ | (4 | ) | |||||||||||||
Hedges of Net Investments in Foreign Operations | |||||||||||||||||||||||||||
PMI designates certain foreign currency denominated debt and foreign exchange contracts as net investment hedges of its foreign operations. For the years ended December 31, 2013, 2012 and 2011, these hedges of net investments resulted in losses, net of income taxes, of $285 million, $95 million and $37 million, respectively. These losses were reported as a component of accumulated other comprehensive losses within currency translation adjustments. For the years ended December 31, 2013, 2012 and 2011, ineffectiveness related to net investment hedges was not material. Other investing cash flows on PMI’s consolidated statements of cash flows include the premiums paid for and settlements of net investment hedges. | |||||||||||||||||||||||||||
63 | |||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, foreign exchange contracts that were designated as net investment hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||||||||
(pre-tax, in millions) | For the Years Ended December 31, | ||||||||||||||||||||||||||
Derivatives in Net Investment | Statement of Earnings | Amount of | Amount of | ||||||||||||||||||||||||
Hedging Relationship | Classification of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | Gain/(Loss) | Gain/(Loss) | ||||||||||||||||||||||||
Reclassified | Recognized in | ||||||||||||||||||||||||||
from Other | Other | ||||||||||||||||||||||||||
Comprehensive | Comprehensive | ||||||||||||||||||||||||||
Earnings/(Losses) into Earnings | Earnings/(Losses) on Derivatives | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Foreign exchange contracts | $ | (79 | ) | $ | (19 | ) | $ | 2 | |||||||||||||||||||
Interest expense, net | $ | — | $ | — | $ | — | |||||||||||||||||||||
Other Derivatives | |||||||||||||||||||||||||||
PMI has entered into foreign exchange contracts to hedge the foreign currency exchange and interest rate risks related to intercompany loans between certain subsidiaries, and third-party loans. While effective as economic hedges, no hedge accounting is applied for these contracts; therefore, the unrealized gains (losses) relating to these contracts are reported in PMI’s consolidated statement of earnings. For the years ended December 31, 2013, 2012 and 2011, the gains from contracts for which PMI did not apply hedge accounting were $99 million, $102 million and $34 million, respectively. The gains from these contracts substantially offset the losses generated by the underlying intercompany and third-party loans being hedged. | |||||||||||||||||||||||||||
As a result, for the years ended December 31, 2013, 2012 and 2011, these items impacted the consolidated statement of earnings as follows: | |||||||||||||||||||||||||||
(pre-tax, in millions) | |||||||||||||||||||||||||||
Derivatives not Designated as Hedging | Statement of Earnings | Amount of Gain/(Loss) | |||||||||||||||||||||||||
Instruments | Classification of | Recognized in Earnings | |||||||||||||||||||||||||
Gain/(Loss) | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||
Marketing, administration | $ | 1 | $ | — | $ | — | |||||||||||||||||||||
and research costs | |||||||||||||||||||||||||||
Interest expense, net | 3 | 14 | 56 | ||||||||||||||||||||||||
Total | $ | 4 | $ | 14 | $ | 56 | |||||||||||||||||||||
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) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Gain as of January 1, | $ | 92 | $ | 15 | $ | 2 | |||||||||||||||||||||
Derivative (gains)/losses transferred to earnings | (235 | ) | (22 | ) | 18 | ||||||||||||||||||||||
Change in fair value | 206 | 99 | (5 | ) | |||||||||||||||||||||||
Gain as of December 31, | $ | 63 | $ | 92 | $ | 15 | |||||||||||||||||||||
At December 31, 2013, PMI expects $68 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the consolidated statement of earnings within the next twelve months. These gains are expected to be substantially offset by the statement of earnings impact of the respective hedged transactions. | |||||||||||||||||||||||||||
Contingent Features | |||||||||||||||||||||||||||
PMI’s derivative instruments do not contain contingent features. | |||||||||||||||||||||||||||
Credit Exposure and Credit Risk | |||||||||||||||||||||||||||
PMI is exposed to credit loss in the event of non-performance by counterparties. While PMI does not anticipate non-performance, its risk is limited to the fair value of the financial instruments less any cash collateral received or pledged. PMI actively monitors its exposure to credit risk through the use of credit approvals and credit limits and by selecting and continuously monitoring a diverse group of major international banks and financial institutions as counterparties. | |||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||
See Note 16. Fair Value Measurements and Note 22. Balance Sheet Offsetting for additional discussion of derivative financial instruments. | |||||||||||||||||||||||||||
64 |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements: | ||||||||||||||||
The authoritative 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, which are as follows: | ||||||||||||||||
Level 1 | — | Quoted prices in active markets for identical assets or liabilities; | ||||||||||||||
Level 2 | — | Observable inputs other than Level 1 prices, such as 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; and | ||||||||||||||
Level 3 | — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||
PMI's policy is to reflect transfers between hierarchy levels at the end of the reporting period. | ||||||||||||||||
Derivative Financial Instruments — Foreign Exchange Contracts | ||||||||||||||||
PMI assesses the fair value of its derivative financial instruments, which consist of deliverable and non-deliverable foreign exchange forward contracts, foreign currency swaps and foreign currency options, using internally developed models that use, as their basis, readily observable market inputs. The fair value of PMI’s foreign exchange forward contracts is determined by using the prevailing foreign exchange spot rates and interest rate differentials and the respective maturity dates of the instruments. The fair value of PMI’s currency options is determined by using a Black-Scholes methodology based on foreign exchange spot rates and interest rate differentials, currency volatilities and maturity dates. PMI’s derivative financial instruments have been classified within Level 2 at December 31, 2013 and 2012. See Note 15. Financial Instruments for additional discussion of derivative financial instruments. | ||||||||||||||||
Pension Plan Assets | ||||||||||||||||
The fair value of pension plan assets, determined by using readily available quoted market prices in active markets, has been classified within Level 1 of the fair value hierarchy at December 31, 2013 and 2012. The fair value of pension plan assets determined by using quoted prices in markets that are not active has been classified within Level 2 at December 31, 2013 and 2012. See Note 13. Benefit Plans for additional discussion of pension plan assets. | ||||||||||||||||
Debt | ||||||||||||||||
The fair value of PMI’s outstanding 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. The aggregate carrying value of PMI’s debt, excluding short-term borrowings and $17 million of capital lease obligations, was $25,261 million at December 31, 2013. The aggregate carrying value of PMI’s debt, excluding short-term borrowings and $37 million of capital lease obligations, was $20,383 million at December 31, 2012. The fair value of PMI's outstanding debt, excluding the aforementioned short-term borrowings and capital lease obligations, has been classified within Level 1 and Level 2 at December 31, 2013 and 2012. | ||||||||||||||||
The aggregate fair values of PMI’s derivative financial instruments, pension plan assets and debt as of December 31, 2013 and 2012, were as follows: | ||||||||||||||||
(in millions) | Fair Value At | Quoted Prices in Active Markets for | Significant Other | Significant | ||||||||||||
December 31, 2013 | Identical Assets/Liabilities | Observable Inputs | Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | 153 | $ | — | $ | 153 | $ | — | ||||||||
Pension plan assets | 6,871 | 5,164 | 1,707 | — | ||||||||||||
Total assets | $ | 7,024 | $ | 5,164 | $ | 1,860 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Debt | $ | 26,141 | $ | 25,961 | $ | 180 | ||||||||||
Foreign exchange contracts | 116 | — | 116 | — | ||||||||||||
Total liabilities | $ | 26,257 | $ | 25,961 | $ | 296 | $ | — | ||||||||
(in millions) | Fair Value At | Quoted Prices in Active Markets for | Significant Other | Significant | ||||||||||||
31-Dec-12 | Identical Assets/Liabilities | Observable Inputs | Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | 160 | $ | — | $ | 160 | $ | — | ||||||||
Pension plan assets(a) | 5,911 | 4,419 | 1,492 | — | ||||||||||||
Total assets | $ | 6,071 | $ | 4,419 | $ | 1,652 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Debt | $ | 22,719 | $ | 22,316 | $ | 403 | $ | — | ||||||||
Foreign exchange contracts | 55 | — | 55 | — | ||||||||||||
Total liabilities | $ | 22,774 | $ | 22,316 | $ | 458 | $ | — | ||||||||
(a) Mutual funds in the amount of $1,363 million were transferred from Level 2 to Level 1 because they are actively traded on a daily basis. | ||||||||||||||||
65 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Losses | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Currency translation adjustments | $ | (2,207 | ) | $ | (331 | ) | $ | (293 | ) | |||
Pension and other benefits | (2,046 | ) | (3,365 | ) | (2,585 | ) | ||||||
Derivatives accounted for as hedges | 63 | 92 | 15 | |||||||||
Total accumulated other comprehensive losses | $ | (4,190 | ) | $ | (3,604 | ) | $ | (2,863 | ) | |||
Reclassifications from Other Comprehensive Earnings | ||||||||||||
The movements in accumulated other comprehensive losses and the related tax impact, for each of the components above, that is 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, 2013, 2012 and 2011. The movement in currency translation adjustments for the year ended December 31, 2013, was also impacted by the purchase of the remaining shares of the Mexican tobacco business. In addition, $12 million of net currency translation adjustment gains were transferred from other comprehensive earnings to marketing, administration and research costs in the consolidated statements of earnings for the year ended December 31, 2013 upon liquidation of a subsidiary. For additional information, see Note 13. Benefit Plans and Note 15. Financial Instruments for disclosures related to PMI's pension and other benefits and derivative financial instruments. |
Colombian_Investment_and_Coope
Colombian Investment and Cooperation Agreement | 12 Months Ended |
Dec. 31, 2013 | |
Colombian Investment and Cooperation Agreement [Abstract] | ' |
Colombian Investment and Cooperation Agreement | ' |
Colombian Investment and Cooperation Agreement: | |
On June 19, 2009, PMI announced that it had signed an agreement with the Republic of Colombia, together with the Departments of Colombia and the Capital District of Bogota, to promote investment and cooperation with respect to the Colombian tobacco market and to fight counterfeit and contraband tobacco products. The Investment and Cooperation Agreement provides $200 million in funding to the Colombian governments over a 20-year period to address issues of mutual interest, such as combating the illegal cigarette trade, including the threat of counterfeit tobacco products, and increasing the quality and quantity of locally grown tobacco. As a result of the Investment and Cooperation Agreement, PMI recorded a pre-tax charge of $135 million in the operating results of the Latin America & Canada segment during the second quarter of 2009. | |
At December 31, 2013 and 2012, PMI had $74 million and $77 million, respectively, of discounted liabilities associated with the Colombian Investment and Cooperation Agreement. These discounted liabilities are primarily reflected in other long-term liabilities on the consolidated balance sheets and are expected to be paid through 2028. |
RBH_Legal_Settlement
RBH Legal Settlement | 12 Months Ended |
Dec. 31, 2013 | |
RBH Legal Settlement [Abstract] | ' |
RBH Legal Settlement | ' |
RBH Legal Settlement: | |
On July 31, 2008, Rothmans Inc. ("Rothmans") announced the finalization of a CAD 550 million settlement (or approximately $540 million, based on the prevailing exchange rate at that time) between itself and Rothmans, Benson & Hedges Inc. ("RBH"), on the one hand, and the Government of Canada and all 10 provinces, on the other hand. The settlement resolves the Royal Canadian Mounted Police's investigation relating to products exported from Canada by RBH during the 1989-1996 period. Rothmans' sole holding was a 60% interest in RBH. The remaining 40% interest in RBH was owned by PMI. | |
Subsequent to the finalization of the settlement, PMI announced that it had entered into an agreement with Rothmans to purchase, by way of a tender offer, all of the outstanding common shares of Rothmans. In October 2008, PMI completed the acquisition of all of Rothmans shares. | |
At December 31, 2013 and 2012, PMI had $152 million and $190 million, respectively, of discounted accrued settlement charges associated with the RBH legal settlement. These accrued settlement charges are primarily reflected in other long-term liabilities on the consolidated balance sheets and are expected to be paid through 2019. |
EC_Agreement
E.C. Agreement | 12 Months Ended |
Dec. 31, 2013 | |
E.C. Agreement [Abstract] | ' |
E.C. Agreement | ' |
E.C. Agreement: | |
In 2004, PMI entered into an agreement with the European Commission (“E.C.”) and 10 Member States of the European Union that provides for broad cooperation with European law enforcement agencies on anti-contraband and anti-counterfeit efforts. This agreement has been signed by all 27 Member States. The agreement resolves all disputes between the parties relating to these issues. Under the terms of the agreement, PMI will make 13 payments over 12 years, including an initial payment of $250 million, which was recorded as a pre-tax charge against its earnings in 2004. The agreement calls for additional payments of approximately $150 million on the first anniversary of the agreement (this payment was made in July 2005), approximately $100 million on the second anniversary (this payment was made in July 2006) and approximately $75 million each year thereafter for 10 years, each of which is to be adjusted based on certain variables, including PMI’s market share in the European Union in the year preceding payment. Because future additional payments are subject to these variables, PMI records charges for them as an expense in cost of sales when product is shipped. In addition, PMI is also responsible to pay the excise taxes, VAT and customs duties on qualifying product seizures of up | |
66 | |
to 90 million cigarettes and is subject to payments of five times the applicable taxes and duties if qualifying product seizures exceed 90 million cigarettes in a given year. To date, PMI’s annual payments related to product seizures have been immaterial. Total charges related to the E.C. Agreement of $81 million, $78 million and $86 million were recorded in cost of sales in 2013, 2012 and 2011, respectively. |
Contingencies
Contingencies | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
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 and PMI, PMI will indemnify Altria and PM USA 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, Israel 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, 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, if any. 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. | ||||||||||
To date, we have paid only one judgment in a tobacco-related case. That judgment, including costs, was approximately €1,400 (approximately $1,900), and that payment was made in order to appeal an Italian small claims case, which was subsequently reversed on appeal. To date, no tobacco-related case has been finally resolved in favor of a plaintiff against us, our subsidiaries or indemnitees. | ||||||||||
The table below lists the number of tobacco-related cases pending against us and/or our subsidiaries or indemnitees as of December 31, 2013, December 31, 2012 and December 31, 2011: | ||||||||||
Type of Case | Number of Cases Pending as of December 31, 2013 | Number of Cases Pending as of | Number of Cases Pending as of | |||||||
31-Dec-12 | 31-Dec-11 | |||||||||
Individual Smoking and Health Cases | 62 | 76 | 75 | |||||||
Smoking and Health Class Actions | 11 | 11 | 10 | |||||||
Health Care Cost Recovery Actions | 15 | 15 | 11 | |||||||
Lights Class Actions | 1 | 2 | 2 | |||||||
Individual Lights Cases | 2 | 7 | 9 | |||||||
Public Civil Actions | 3 | 4 | 3 | |||||||
Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 416 Smoking and Health, Lights, 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. Ten cases have had decisions in favor of plaintiffs. Eight of these cases have subsequently reached final resolution in our favor and two remain on appeal. | ||||||||||
67 | ||||||||||
The table below lists the verdicts and post-trial developments in the following cases where verdicts were returned in favor of plaintiffs: | ||||||||||
Date | Location of | Type of | Verdict | Post-Trial | ||||||
Court/Name of | Case | Developments | ||||||||
Plaintiff | ||||||||||
Sep-09 | Brazil/Bernhardt | Individual Smoking and Health | The Civil Court of Rio de Janeiro found for plaintiff and ordered Philip Morris Brasil to pay R$13,000 (approximately $5,500) in “moral damages.” | Philip Morris Brasil filed its appeal against the decision on the merits with the Court of Appeals in November 2009. In February 2010, without addressing the merits, the Court of Appeals annulled the trial court's decision and remanded the case to the trial court to issue a new ruling, which was required to address certain compensatory damage claims made by the plaintiff that the trial court did not address in its original ruling. In July 2010, the trial court reinstated its original decision, while specifically rejecting the compensatory damages claim. Philip Morris Brasil appealed this decision. | ||||||
In March 2011, the Court of Appeals affirmed the trial court's decision and denied Philip Morris Brasil's appeal. The Court of Appeals increased the amount of damages awarded to the plaintiff to R$100,000 (approximately $42,300). Philip Morris Brasil has appealed this decision. | ||||||||||
Date | Location of | Type of | Verdict | Post-Trial | ||||||
Court/Name of | Case | Developments | ||||||||
Plaintiff | ||||||||||
Feb-04 | Brazil/The Smoker Health Defense Association | Class Action | The Civil Court of São Paulo found defendants liable without hearing evidence. The court did not assess moral or actual damages, which were to be assessed in a second phase of the case. The size of the class was not defined in the ruling. | In April 2004, the court clarified its ruling, awarding “moral damages” of R$1,000 (approximately $420) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not award actual damages, which were to be assessed in the second phase of the case. The size of the class was not estimated. Defendants appealed to the São Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. Plaintiff has appealed. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that the plaintiff did not have standing to bring the lawsuit. This appeal is still pending. | ||||||
68 | ||||||||||
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, 2013, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: | ||||||||||
• | 62 cases brought by individual plaintiffs in Argentina (24), Brazil (24), Canada (2), Chile (4), Costa Rica (2), Greece (1), Italy (3), the Philippines (1) and Scotland (1), compared with 76 such cases on December 31, 2012, and 75 cases on December 31, 2011; and | |||||||||
• | 11 cases brought on behalf of classes of individual plaintiffs in Brazil (2) and Canada (9), compared with 11 such cases on December 31, 2012 and 10 such cases on December 31, 2011. | |||||||||
In the first class action pending in Brazil, The Smoker Health Defense Association (ADESF) v. Souza Cruz, S.A. and Philip Morris Marketing, S.A., Nineteenth Lower Civil Court of the Central Courts of the Judiciary District of São Paulo, Brazil, filed July 25, 1995, our subsidiary and another member of the industry are defendants. The plaintiff, a consumer organization, is seeking damages for smokers and former smokers and injunctive relief. The verdict and post-trial developments in this case are described in the above table. | ||||||||||
In the second class action pending in Brazil, Public Prosecutor of São Paulo v. Philip Morris Brasil Industria e Comercio Ltda., Civil Court of the City of São Paulo, Brazil, filed August 6, 2007, our subsidiary is a defendant. The plaintiff, the Public Prosecutor of the State of São Paulo, is seeking (i) damages on behalf of all smokers nationwide, former smokers, and their relatives; (ii) damages on behalf of people exposed to environmental tobacco smoke (“ETS”) nationwide, and their relatives; and (iii) reimbursement of the health care costs allegedly incurred for the treatment of tobacco-related diseases by all Brazilian States and Municipalities, and the Federal District. In an interim ruling issued in December 2007, the trial court limited the scope of this claim to the State of São Paulo only. In December 2008, the Seventh Civil Court of São Paulo issued a decision declaring that it lacked jurisdiction because the case involved issues similar to the ADESF case discussed above and should be transferred to the Nineteenth Lower Civil Court in São Paulo where the ADESF case is pending. The court further stated that these cases should be consolidated for the purposes of judgment. In April 2010, the São Paulo Court of Appeals reversed the Seventh Civil Court's decision that consolidated the cases, finding that they are based on different legal claims and are progressing at different stages of proceedings. This case was returned to the Seventh Civil Court of São Paulo, and our subsidiary filed its closing arguments in December 2010. In March 2012, the trial court dismissed the case on the merits. In January 2014, the São Paulo Court of Appeals rejected plaintiff’s appeal and affirmed the trial court decision. | ||||||||||
In the first class action pending in Canada, Cecilia Letourneau v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI Macdonald Corp., Quebec Superior Court, Canada, filed in September 1998, our subsidiary and other Canadian manufacturers are defendants. The plaintiff, an individual smoker, is seeking compensatory and punitive damages for each member of the class who is deemed addicted to smoking. The class was certified in 2005. In February 2011, the trial court ruled that the federal government would remain as a third party in the case. In November 2012, the Court of Appeals dismissed defendants' third-party claims against the federal government. Trial began on March 12, 2012. At the present pace, trial is expected to conclude in 2014, with a judgment to follow at an indeterminate point after the conclusion of the trial proceedings. | ||||||||||
In the second class action pending in Canada, Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI Macdonald Corp., Quebec Superior Court, Canada, filed in November 1998, our subsidiary and other Canadian manufacturers are defendants. The plaintiffs, an anti-smoking organization and an individual smoker, are seeking compensatory and punitive damages for each member of the class who allegedly suffers from certain smoking-related diseases. The class was certified in 2005. In February 2011, the trial court ruled that the federal government would remain as a third party in the case. In November 2012, the Court of Appeals dismissed defendants' third-party claims against the federal government. Trial began on March 12, 2012. At the present pace, trial is expected to conclude in 2014, with a judgment to follow at an indeterminate point after the conclusion of the trial proceedings. | ||||||||||
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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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 September 2009, plaintiff's counsel informed defendants that he did not anticipate taking any action in this case while he pursues the class action filed in Saskatchewan (see description of Adams, below). | ||||||||||
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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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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. Preliminary motions are pending. | ||||||||||
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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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. No activity in this case is anticipated while plaintiff's counsel pursues the class action filed in Saskatchewan (see description of Adams, above). | ||||||||||
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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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. No activity in this case is anticipated while plaintiff's counsel pursues the class action filed in Saskatchewan (see description of Adams, above). | ||||||||||
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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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. Defendants have filed jurisdictional challenges on the grounds that this action should not proceed during the pendency of the Saskatchewan class action (see description of Adams, above). | ||||||||||
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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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. Defendants have filed jurisdictional challenges on the grounds that this action should not proceed during the pendency of the Saskatchewan class action (see description of Adams, above). | ||||||||||
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, our subsidiaries, and our indemnitees (PM USA and Altria Group, Inc.), 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. Plaintiff's counsel has indicated that he does not intend to take any action in this case in the near future. | ||||||||||
Health Care Cost Recovery Litigation: These cases, brought by governmental and non-governmental plaintiffs, seek reimbursement of health care cost expenditures allegedly caused by tobacco products. Plaintiffs' allegations of liability in these cases are based on various theories of recovery including unjust enrichment, negligence, negligent design, strict liability, breach of express and implied warranties, violation of a voluntary undertaking or special duty, fraud, negligent misrepresentation, conspiracy, public nuisance, defective product, failure to warn, sale of cigarettes to minors, and claims under statutes governing competition and deceptive trade practices. Plaintiffs in these cases seek various forms of relief including compensatory and other damages, and injunctive and equitable relief. Defenses raised in these cases include lack of proximate cause, remoteness of injury, failure to state a claim, adequate remedy at law, “unclean hands” (namely, that plaintiffs cannot obtain equitable relief because they participated in, and benefited from, the sale of cigarettes), and statute of limitations. | ||||||||||
As of December 31, 2013, there were 15 health care cost recovery cases pending against us, our subsidiaries or indemnitees in Canada (9), Nigeria (5) and Spain (1), compared with 15 such cases on December 31, 2012 and 11 such cases on December 31, 2011. | ||||||||||
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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, our subsidiaries, 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.” The Supreme Court of Canada has held that the statute is constitutional. We and certain other non-Canadian defendants challenged the jurisdiction of the court. The court rejected the jurisdictional challenge. Pre-trial discovery is ongoing. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), 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.” Pre-trial discovery is ongoing. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), 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.” Preliminary motions are pending. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), 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.” Preliminary motions are pending. | ||||||||||
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, our subsidiary, 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.” Preliminary motions are pending. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), 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.” We, our subsidiaries and our indemnitees have all been served with the statement of claim. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), 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.” Preliminary motions are pending. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), 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.” Preliminary motions are pending. | ||||||||||
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, our subsidiaries, our indemnitees (PM USA and Altria Group, Inc.), and other members of the industry are defendants. The claim | ||||||||||
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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.” Preliminary motions are pending. | ||||||||||
In the first health care cost recovery case in Nigeria, The Attorney General of Lagos State v. British American Tobacco (Nigeria) Limited, et al., High Court of Lagos State, Lagos, Nigeria, filed March 13, 2008, we and other members of the industry are defendants. Plaintiff seeks reimbursement for the cost of treating alleged smoking-related diseases for the past 20 years, payment of anticipated costs of treating alleged smoking-related diseases for the next 20 years, various forms of injunctive relief, plus punitive damages. We are in the process of making challenges to service and the court's jurisdiction. Currently, the case is stayed in the trial court pending the appeals of certain co-defendants relating to service objections. We currently have no employees, operations or assets in Nigeria. | ||||||||||
In the second health care cost recovery case in Nigeria, The Attorney General of Kano State v. British American Tobacco (Nigeria) Limited, et al., High Court of Kano State, Kano, Nigeria, filed May 9, 2007, we and other members of the industry are defendants. Plaintiff seeks reimbursement for the cost of treating alleged smoking-related diseases for the past 20 years, payment of anticipated costs of treating alleged smoking-related diseases for the next 20 years, various forms of injunctive relief, plus punitive damages. We are in the process of making challenges to service and the court's jurisdiction. Currently, the case is stayed in the trial court pending the appeals of certain co-defendants relating to service objections. | ||||||||||
In the third health care cost recovery case in Nigeria, The Attorney General of Gombe State v. British American Tobacco (Nigeria) Limited, et al., High Court of Gombe State, Gombe, Nigeria, filed October 17, 2008, we and other members of the industry are defendants. Plaintiff seeks reimbursement for the cost of treating alleged smoking-related diseases for the past 20 years, payment of anticipated costs of treating alleged smoking-related diseases for the next 20 years, various forms of injunctive relief, plus punitive damages. In February 2011, the court ruled that the plaintiff had not complied with the procedural steps necessary to serve us. As a result of this ruling, plaintiff must re-serve its claim. We have not yet been re-served. | ||||||||||
In the fourth health care cost recovery case in Nigeria, The Attorney General of Oyo State, et al., v. British American Tobacco (Nigeria) Limited, et al., High Court of Oyo State, Ibadan, Nigeria, filed May 25, 2007, we and other members of the industry are defendants. Plaintiffs seek reimbursement for the cost of treating alleged smoking-related diseases for the past 20 years, payment of anticipated costs of treating alleged smoking-related diseases for the next 20 years, various forms of injunctive relief, plus punitive damages. We challenged service as improper. In June 2010, the court ruled that plaintiffs did not have leave to serve the writ of summons on the defendants and that they must re-serve the writ. We have not yet been re-served. | ||||||||||
In the fifth health care cost recovery case in Nigeria, The Attorney General of Ogun State v. British American Tobacco (Nigeria) Limited, et al., High Court of Ogun State, Abeokuta, Nigeria, filed February 26, 2008, we and other members of the industry are defendants. Plaintiff seeks reimbursement for the cost of treating alleged smoking-related diseases for the past 20 years, payment of anticipated costs of treating alleged smoking-related diseases for the next 20 years, various forms of injunctive relief, plus punitive damages. In May 2010, the trial court rejected our service objections. We have appealed. | ||||||||||
In a series of proceedings in Spain, Junta de Andalucia, et al. v. Philip Morris Spain, et al., Court of First Instance, Madrid, Spain, the first of which was filed February 21, 2002, our subsidiary and other members of the industry were defendants. The plaintiffs sought reimbursement for the cost of treating certain of their citizens for various alleged smoking-related illnesses. In May 2004, the first instance court dismissed the initial case, finding that the State was a necessary party to the claim, and thus, the claim must be filed in the Administrative Court. In September 2007, the plaintiffs filed their complaint in the Administrative Court, which dismissed the claim based on a procedural issue in November 2007. In November 2009, the Supreme Court rejected plaintiffs' appeal, resulting in the final dismissal of the claim. However, plaintiffs have filed a second claim in the Administrative Court against the Ministry of Economy. This second claim seeks the same relief as the original claim, but relies on a different procedural posture. In December 2013, the Administrative Court rejected plaintiffs' reimbursement claim. Plaintiffs' may appeal. | ||||||||||
Lights Cases: These cases, brought by individual plaintiffs, or on behalf of a class of individual plaintiffs, allege that the use of the term “lights” constitutes fraudulent and misleading conduct. Plaintiffs' allegations of liability in these cases are based on various theories of recovery including misrepresentation, deception, and breach of consumer protection laws. Plaintiffs seek various forms of relief including restitution, injunctive relief, and compensatory and other damages. Defenses raised include lack of causation, lack of reliance, assumption of the risk, and statute of limitations. | ||||||||||
As of December 31, 2013, the following lights cases were pending against our subsidiaries or indemnitees: | ||||||||||
• | 1 case brought on behalf of individual plaintiffs in Israel, compared with 2 such cases on December 31, 2012 and December 31, 2011, respectively; and | |||||||||
• | 2 cases brought by individual plaintiffs in Chile (1) and Italy (1), compared with 7 such cases on December 31, 2012, and 9 such cases on December 31, 2011. | |||||||||
In the class action pending in Israel, El-Roy, et al. v. Philip Morris Incorporated, et al., District Court of Tel-Aviv/Jaffa, Israel, filed January 18, 2004, our subsidiary and our indemnitees (PM USA and our former importer) are defendants. The plaintiffs filed a purported class action claiming that the class members were misled by the descriptor “lights” into believing that lights cigarettes are safer than full flavor cigarettes. The claim seeks recovery of the purchase price of lights cigarettes and compensation for distress for | ||||||||||
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each class member. Hearings took place in November and December 2008 regarding whether the case meets the legal requirements necessary to allow it to proceed as a class action. The parties' briefing on class certification was completed in March 2011. In November 2012, the court denied class certification and dismissed the individual claims. Plaintiffs have appealed and an oral hearing has been scheduled for September 2014. | ||||||||||
Public Civil Actions: Claims have been filed either by an individual, or a public or private entity, seeking to protect collective or individual rights, such as the right to health, the right to information or the right to safety. Plaintiffs' allegations of liability in these cases are based on various theories of recovery including product defect, concealment, and misrepresentation. Plaintiffs in these cases seek various forms of relief including injunctive relief such as banning cigarettes, descriptors, smoking in certain places and advertising, as well as implementing communication campaigns and reimbursement of medical expenses incurred by public or private institutions. | ||||||||||
As of December 31, 2013, there were 3 public civil actions pending against our subsidiaries in Argentina (1), Brazil (1), and Venezuela (1), compared with 4 such cases on December 31, 2012, and 3 such cases on December 31, 2011. | ||||||||||
In the public civil action in Argentina, Asociación Argentina de Derecho de Danos v. Massalin Particulares S.A., et al., Civil Court of Buenos Aires, Argentina, filed February 26, 2007, our subsidiary and another member of the industry are defendants. The plaintiff, a consumer association, seeks the establishment of a relief fund for reimbursement of medical costs associated with diseases allegedly caused by smoking. Our subsidiary filed its answer in September 2007. In March 2010, the case file was transferred to the Federal Court on Administrative Matters after the Civil Court granted the plaintiff's request to add the national government as a co-plaintiff in the case. The case is currently in the evidentiary stage. | ||||||||||
In the public civil action in Brazil, The Brazilian Association for the Defense of Consumer Health (“SAUDECON”) v. Philip Morris Brasil Industria e Comercio Ltda. and Souza Cruz S.A., Civil Court of City of Porto Alegre, Brazil, filed November 3, 2008, our subsidiary is a defendant. The plaintiff, a consumer organization, is asking the court to establish a fund that will be used to provide treatment to smokers who claim to be addicted and who do not otherwise have access to smoking cessation treatment. Plaintiff requests that each defendant's liability be determined according to its market share. In May 2009, the trial court dismissed the case on the merits. In December 2013, the court of appeals affirmed the trial court's dismissal of the case. Plaintiff may appeal further. | ||||||||||
In the public civil action in Venezuela, Federation of Consumers and Users Associations (“FEVACU”), et al. v. National Assembly of Venezuela and the Venezuelan Ministry of Health, Constitutional Chamber of the Venezuelan Supreme Court, filed April 29, 2008, we were not named as a defendant, but the plaintiffs published a notice pursuant to court order, notifying all interested parties to appear in the case. In January 2009, our subsidiary appeared in the case in response to this notice. The plaintiffs purport to represent the right to health of the citizens of Venezuela and claim that the government failed to protect adequately its citizens' right to health. The claim asks the court to order the government to enact stricter regulations on the manufacture and sale of tobacco products. In addition, the plaintiffs ask the court to order companies involved in the tobacco industry to allocate a percentage of their “sales or benefits” to establish a fund to pay for the health care costs of treating smoking-related diseases. In October 2008, the court ruled that plaintiffs have standing to file the claim and that the claim meets the threshold admissibility requirements. In December 2012, the court admitted our subsidiary and BAT's subsidiary as interested third parties. In February 2013, our subsidiary answered the complaint. | ||||||||||
Other Litigation | ||||||||||
We are also involved in other litigation arising in the ordinary course of our business. While the outcomes of these proceedings are uncertain, management does not expect that the ultimate outcomes of other litigation, including any reasonably possible losses in excess of current accruals, will have a material adverse effect on our consolidated results of operations, cash flows or financial position. |
Balance_Sheet_Offsetting_Notes
Balance Sheet Offsetting (Notes) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Balance Sheet Offsetting [Abstract] | ' | ||||||||||||||||||
Balance Sheet Offsetting | ' | ||||||||||||||||||
Balance Sheet Offsetting: | |||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||
PMI uses deliverable and non-deliverable forward foreign exchange contracts, foreign currency swaps and foreign currency options, collectively referred to as foreign exchange contracts, to mitigate its exposure to changes in exchange and interest rates from third-party and intercompany actual and forecasted transactions. Substantially all of PMI's foreign exchange contracts 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. See Note 15. Financial Instruments for disclosures related to PMI's derivative financial instruments. | |||||||||||||||||||
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The effects of these foreign exchange contract assets and liabilities on PMI's consolidated balance sheets were as follows: | |||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the | |||||||||||||||
Consolidated | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||
Financial Instruments | Cash Collateral Received/Pledged | ||||||||||||||||||
Net Amount | |||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 153 | $ | — | $ | 153 | $ | (52 | ) | $ | (79 | ) | $ | 22 | |||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 116 | $ | — | $ | 116 | $ | (52 | ) | $ | (47 | ) | $ | 17 | |||||
At December 31, 2012 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 160 | $ | — | $ | 160 | $ | (24 | ) | $ | — | $ | 136 | ||||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 55 | $ | — | $ | 55 | $ | (24 | ) | $ | — | $ | 31 | ||||||
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interest (Notes) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Temporary Equity Disclosure [Abstract] | ' | |||
Redeemable noncontrolling interest | ' | |||
Redeemable Noncontrolling Interest: | ||||
On February 25, 2010, PMI’s affiliate, Philip Morris Philippines Manufacturing Inc. (“PMPMI”), and Fortune Tobacco Corporation (“FTC”) combined their respective business activities by transferring selected assets and liabilities of PMPMI and FTC to a new company called PMFTC Inc. (“PMFTC”). PMPMI and FTC hold equal economic interests in PMFTC, while PMI manages the day-to-day operations of PMFTC and has a majority of its Board of Directors. Consequently, PMI accounted for the contributed assets and liabilities of FTC as a business combination. | ||||
The fair value of the assets and liabilities contributed by FTC in this non-cash transaction was determined to be $1.17 billion. At the time of the business combination, FTC was given the right to sell its interest in PMFTC to PMI, except in certain circumstances, during the period from February 25, 2015, through February 24, 2018, at an agreed-upon value of $1.17 billion, which was recorded on PMI’s consolidated balance sheet as a redeemable noncontrolling interest at the date of the business combination. On December 10, 2013, FTC terminated the agreement related to this exit right. As a result, the amount included in the consolidated balance sheet as redeemable noncontrolling interest was reclassified to noncontrolling interests within stockholders' deficit on the December 31, 2013 consolidated balance sheet. | ||||
The movement in redeemable noncontrolling interest during the years ended December 31, 2013, 2012 and 2011 was as follows: | ||||
(in millions) | ||||
Redeemable noncontrolling interest at January 1, 2011 | $ | 1,188 | ||
Share of net earnings | 97 | |||
Dividend payments | (73 | ) | ||
Currency translation | — | |||
Redeemable noncontrolling interest at December 31, 2011 | $ | 1,212 | ||
Share of net earnings | 171 | |||
Dividend payments | (105 | ) | ||
Currency translation | 25 | |||
Net loss and prior service cost | (2 | ) | ||
Redeemable noncontrolling interest at December 31, 2012 | $ | 1,301 | ||
Share of net earnings | 99 | |||
Dividend payments | (94 | ) | ||
Currency translation losses | (33 | ) | ||
Net loss and prior service cost | 2 | |||
Termination of rights agreement | (1,275 | ) | ||
Redeemable noncontrolling interest at December 31, 2013 | $ | — | ||
74 |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Quarterly Financial Data (Unaudited): | ||||||||||||||||
2013 Quarters | ||||||||||||||||
(in millions, except per share data) | 1st | 2nd | 3rd | 4th | ||||||||||||
Net revenues | $ | 18,527 | $ | 20,483 | $ | 20,629 | $ | 20,390 | ||||||||
Gross profit | $ | 5,095 | $ | 5,216 | $ | 5,309 | $ | 5,187 | ||||||||
Net earnings attributable to PMI | $ | 2,125 | $ | 2,124 | $ | 2,340 | $ | 1,987 | ||||||||
Per share data: | ||||||||||||||||
Basic EPS | $ | 1.28 | $ | 1.3 | $ | 1.44 | $ | 1.24 | ||||||||
Diluted EPS | $ | 1.28 | $ | 1.3 | $ | 1.44 | $ | 1.24 | ||||||||
Dividends declared | $ | 0.85 | $ | 0.85 | $ | 0.94 | $ | 0.94 | ||||||||
Market price: | ||||||||||||||||
— High | $ | 93.61 | $ | 96.73 | $ | 91.4 | $ | 91.81 | ||||||||
— Low | $ | 84.33 | $ | 86.05 | $ | 82.86 | $ | 83.81 | ||||||||
2012 Quarters | ||||||||||||||||
(in millions, except per share data) | 1st | 2nd | 3rd | 4th | ||||||||||||
Net revenues | $ | 18,022 | $ | 20,037 | $ | 19,592 | $ | 19,742 | ||||||||
Gross profit | $ | 5,006 | $ | 5,454 | $ | 5,336 | $ | 5,208 | ||||||||
Net earnings attributable to PMI | $ | 2,161 | $ | 2,317 | $ | 2,227 | $ | 2,095 | ||||||||
Per share data: | ||||||||||||||||
Basic EPS | $ | 1.25 | $ | 1.36 | $ | 1.32 | $ | 1.25 | ||||||||
Diluted EPS | $ | 1.25 | $ | 1.36 | $ | 1.32 | $ | 1.25 | ||||||||
Dividends declared | $ | 0.77 | $ | 0.77 | $ | 0.85 | $ | 0.85 | ||||||||
Market price: | ||||||||||||||||
— High | $ | 88.86 | $ | 91.05 | $ | 93.6 | $ | 94.13 | ||||||||
— Low | $ | 72.85 | $ | 81.1 | $ | 86.11 | $ | 82.1 | ||||||||
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year. | ||||||||||||||||
During 2013 and 2012, PMI recorded the following pre-tax charges in earnings: | ||||||||||||||||
2013 Quarters | ||||||||||||||||
(in millions) | 1st | 2nd | 3rd | 4th | ||||||||||||
Asset impairment and exit costs | $ | 3 | $ | 5 | $ | — | $ | 301 | ||||||||
2012 Quarters | ||||||||||||||||
(in millions) | 1st | 2nd | 3rd | 4th | ||||||||||||
Asset impairment and exit costs | $ | 8 | $ | 8 | $ | 34 | $ | 33 | ||||||||
See Note 5. Asset Impairment and Exit Costs for additional information on these pre-tax charges. | ||||||||||||||||
75 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
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 | ' |
Depreciation | |
Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 15 years, and buildings and building improvements over periods up to 40 years. Depreciation expense for 2013, 2012 and 2011 was $789 million, $801 million and $895 million, respectively. | |
Goodwill and non-amortizable intangible assets valuation | ' |
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 first 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. To determine the fair value of goodwill, PMI primarily uses a discounted cash flow model, supported by the market approach using earnings multiples of comparable companies. To determine the fair value of non-amortizable intangible assets, PMI primarily uses a discounted cash flow model applying the relief-from-royalty method. These discounted cash flow models include management assumptions relevant for forecasting operating cash flows, which are subject to changes in business conditions, such as volumes and prices, costs to produce, discount rates and estimated capital needs. Management considers historical experience and all available information at the time the fair values are estimated, and PMI believes these assumptions are consistent with the assumptions a hypothetical marketplace participant would use. PMI concluded that the fair value of our reporting units and non-amortizable intangible assets exceeded the carrying value, and any reasonable movement in the assumptions would not result in an impairment. Since the March 28, 2008, spin-off from Altria Group, Inc. ("Altria"), PMI has not recorded a charge to earnings for an impairment of goodwill or non-amortizable intangible assets. | |
Foreign currency translation | ' |
Foreign currency translation | |
PMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. PMI recorded net transaction losses of $123 million, $51 million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively, in marketing, administration and research costs on the consolidated statements of earnings. | |
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 | |
46 | |
losses are reclassified to the consolidated statements of earnings 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 | |
PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. | |
Income taxes | ' |
Income taxes | |
Income tax provisions for jurisdictions outside the United States, 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. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. | |
Marketing costs | ' |
Marketing costs | |
PMI promotes its products with advertising, consumer incentives and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives and volume-based incentives. Advertising 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 incentive expenses are charged to earnings based on estimated sales and related expenses for the full year. | |
Revenue recognition | ' |
Revenue recognition | |
PMI recognizes revenues, net of sales incentives and including shipping and handling charges billed to customers, either upon shipment or delivery of goods when title and risk of loss pass to customers. Excise taxes billed by PMI to customers are reported in net revenues. Shipping and handling costs are classified as part of cost of sales and were $833 million, $802 million and $905 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Software costs | ' |
Software costs | |
PMI capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment on PMI’s consolidated balance sheets and are amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed five years. | |
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. The fair value of restricted stock and deferred stock is determined based on the number of shares granted and the market value at date of grant. | |
Excess tax benefits from the vesting of stock-based awards of $13 million, $24 million and $19 million were recognized in additional paid-in capital as of December 31, 2013, 2012 and 2011, respectively, and were presented as financing cash flows. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets, net, by Segment | ' | ||||||||||||||||||||
Goodwill and other intangible assets, net, by segment were as follows: | |||||||||||||||||||||
Goodwill | Other Intangible Assets, net | ||||||||||||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||
European Union | $ | 1,472 | $ | 1,448 | $ | 604 | $ | 647 | |||||||||||||
Eastern Europe, Middle East & Africa | 617 | 637 | 228 | 242 | |||||||||||||||||
Asia | 3,960 | 4,791 | 1,251 | 1,542 | |||||||||||||||||
Latin America & Canada | 2,844 | 3,024 | 1,110 | 1,188 | |||||||||||||||||
Total | $ | 8,893 | $ | 9,900 | $ | 3,193 | $ | 3,619 | |||||||||||||
47 | |||||||||||||||||||||
Goodwill is due primarily to PMI’s acquisitions in Canada, Indonesia, Mexico, Greece, Serbia, Colombia and Pakistan, as well as the business combination in the Philippines. | |||||||||||||||||||||
Movements in Goodwill | ' | ||||||||||||||||||||
The movements in goodwill were as follows: | |||||||||||||||||||||
(in millions) | European | Eastern Europe, | Asia | Latin | Total | ||||||||||||||||
Union | Middle East | America & | |||||||||||||||||||
& | Canada | ||||||||||||||||||||
Africa | |||||||||||||||||||||
Balance at January 1, 2012 | $ | 1,392 | $ | 666 | $ | 4,966 | $ | 2,904 | $ | 9,928 | |||||||||||
Changes due to: | |||||||||||||||||||||
Currency | 56 | (29 | ) | (175 | ) | 120 | (28 | ) | |||||||||||||
Balances, December 31, 2012 | 1,448 | 637 | 4,791 | 3,024 | 9,900 | ||||||||||||||||
Changes due to: | |||||||||||||||||||||
Currency | 24 | (20 | ) | (831 | ) | (180 | ) | (1,007 | ) | ||||||||||||
Balance at December 31, 2013 | $ | 1,472 | $ | 617 | $ | 3,960 | $ | 2,844 | $ | 8,893 | |||||||||||
Other Intangible Assets | ' | ||||||||||||||||||||
Additional details of other intangible assets were as follows: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
(in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Non-amortizable intangible assets | $ | 1,798 | $ | 2,046 | |||||||||||||||||
Amortizable intangible assets | 1,940 | $ | 545 | 2,046 | $ | 473 | |||||||||||||||
Total other intangible assets | $ | 3,738 | $ | 545 | $ | 4,092 | $ | 473 | |||||||||||||
Gross Carrying Amount, Range of Useful Lives and Weighted Average Remaining Useful Life of Amortizable Intangible Assets | ' | ||||||||||||||||||||
The gross carrying amount, range of useful lives as well as the weighted-average remaining useful life of amortizable intangible assets at December 31, 2013, were as follows: | |||||||||||||||||||||
Description (in millions) | Gross | Initial Estimated | Weighted-Average | ||||||||||||||||||
Carrying | Useful Lives | Remaining Useful Life | |||||||||||||||||||
Amount | |||||||||||||||||||||
Trademarks | $ | 1,586 | 2 - 40 years | 24 years | |||||||||||||||||
Distribution networks | 160 | 20 - 30 years | 14 years | ||||||||||||||||||
Non-compete agreements | 135 | 3 - 10 years | 1 year | ||||||||||||||||||
Other (including farmer contracts and intellectual property rights) | 59 | 12.5 - 17 years | 12 years | ||||||||||||||||||
$ | 1,940 | ||||||||||||||||||||
Asset_Impairment_and_Exit_Cost1
Asset Impairment and Exit Costs (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Schedule of Asset Impairment and Exit Costs | ' | |||||||||||
During 2013, 2012 and 2011, pre-tax asset impairment and exit costs consisted of the following: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Separation programs: | ||||||||||||
European Union | $ | 13 | $ | — | $ | 35 | ||||||
Eastern Europe, Middle East & Africa | 14 | — | 6 | |||||||||
Asia | 19 | 13 | 7 | |||||||||
Latin America & Canada | 5 | 29 | 15 | |||||||||
Total separation programs | 51 | 42 | 63 | |||||||||
Contract termination charges: | ||||||||||||
Eastern Europe, Middle East & Africa | 250 | — | 12 | |||||||||
Asia | 8 | 13 | — | |||||||||
Total contract termination charges | 258 | 13 | 12 | |||||||||
Asset impairment charges: | ||||||||||||
European Union | — | 5 | 10 | |||||||||
Eastern Europe, Middle East & Africa | — | 5 | 7 | |||||||||
Asia | — | 13 | 8 | |||||||||
Latin America & Canada | — | 5 | 9 | |||||||||
Total asset impairment charges | — | 28 | 34 | |||||||||
Asset impairment and exit costs | $ | 309 | $ | 83 | $ | 109 | ||||||
Movement in the Exit Cost Liabilities | ' | |||||||||||
The movement in exit cost liabilities for PMI was as follows: | ||||||||||||
(in millions) | ||||||||||||
Liability balance, January 1, 2012 | $ | 28 | ||||||||||
Charges | 55 | |||||||||||
Cash spent | (57 | ) | ||||||||||
Currency/other | (6 | ) | ||||||||||
Liability balance, December 31, 2012 | $ | 20 | ||||||||||
Charges | 309 | |||||||||||
Cash spent | (21 | ) | ||||||||||
Currency/other | — | |||||||||||
Liability balance, December 31, 2013 | $ | 308 | ||||||||||
Indebtedness_Indebtedness_Tabl
Indebtedness Indebtedness (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||||||||
At December 31, 2013 and 2012, PMI’s short-term borrowings and related average interest rates consisted of the following: | ||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||
(in millions) | Amount Outstanding | Average Year-End Rate | Amount Outstanding | Average Year-End Rate | ||||||||||
Commercial paper | $ | 1,387 | 0.1 | % | $ | 1,972 | 0.2 | % | ||||||
Bank loans | 1,013 | 5.7 | 447 | 6.6 | ||||||||||
$ | 2,400 | $ | 2,419 | |||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||||||||
At December 31, 2013 and 2012, PMI’s long-term debt consisted of the following: | ||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||
U.S. dollar notes, 0.287% to 6.875% (average interest rate 4.105%), due through 2043 | $ | 16,500 | $ | 14,702 | ||||||||||
Foreign currency obligations: | ||||||||||||||
Euro notes, 1.750% to 5.875% (average interest rate 3.340%), due through 2033 | 7,303 | 3,724 | ||||||||||||
Swiss franc notes, 0.875% to 2.000% (average interest rate 1.240%), due through 2021 | 1,289 | 1,579 | ||||||||||||
Other (average interest rate 3.621%), due through 2024 | 186 | 415 | ||||||||||||
25,278 | 20,420 | |||||||||||||
Less current portion of long-term debt | 1,255 | 2,781 | ||||||||||||
$ | 24,023 | $ | 17,639 | |||||||||||
Schedule of Debt Issuances Outstanding [Table Text Block] | ' | |||||||||||||
PMI’s debt issuances outstanding at December 31, 2013 were as follows: | ||||||||||||||
(in millions) | ||||||||||||||
Type | Face Value | Interest | Issuance | Maturity | ||||||||||
Rate | ||||||||||||||
U.S. dollar notes | $1,250 | 6.88% | Nov-08 | Mar-14 | ||||||||||
U.S. dollar notes | $400 | Floating | Mar-13 | Feb-15 | ||||||||||
U.S. dollar notes | $650 | 2.50% | May-11 | May-16 | ||||||||||
U.S. dollar notes | $600 | 2.50% | August 2011(a) | May-16 | ||||||||||
U.S. dollar notes | $550 | 1.63% | Mar-12 | Mar-17 | ||||||||||
U.S. dollar notes | $750 | 1.13% | Aug-12 | Aug-17 | ||||||||||
U.S. dollar notes | $2,500 | 5.65% | May-08 | May-18 | ||||||||||
U.S. dollar notes | $750 | 1.88% | Nov-13 | Jan-19 | ||||||||||
U.S. dollar notes | $1,000 | 4.50% | Mar-10 | Mar-20 | ||||||||||
U.S. dollar notes | $350 | 4.13% | May-11 | May-21 | ||||||||||
U.S. dollar notes | $750 | 2.90% | Nov-11 | Nov-21 | ||||||||||
U.S. dollar notes | $750 | 2.50% | Aug-12 | Aug-22 | ||||||||||
U.S. dollar notes | $600 | 2.63% | Mar-13 | Mar-23 | ||||||||||
U.S. dollar notes | $500 | 3.60% | Nov-13 | Nov-23 | ||||||||||
U.S. dollar notes | $1,500 | 6.38% | May-08 | May-38 | ||||||||||
U.S. dollar notes | $750 | 4.38% | Nov-11 | Nov-41 | ||||||||||
U.S. dollar notes | $700 | 4.50% | Mar-12 | Mar-42 | ||||||||||
U.S. dollar notes | $750 | 3.88% | Aug-12 | Aug-42 | ||||||||||
U.S. dollar notes | $850 | 4.13% | Mar-13 | Mar-43 | ||||||||||
U.S. dollar notes | $750 | 4.88% | Nov-13 | Nov-43 | ||||||||||
EURO notes | (b) | €750 (approximately $1,105) | 5.88% | Sep-08 | Sep-15 | |||||||||
EURO notes | (b) | €750 (approximately $976) | 5.75% | Mar-09 | Mar-16 | |||||||||
EURO notes | (b) | €750 (approximately $951) | 2.13% | May-12 | May-19 | |||||||||
EURO notes | (b) | €1,250 (approximately $1,621) | 1.75% | Mar-13 | Mar-20 | |||||||||
EURO notes | (b) | €600 (approximately $761) | 2.88% | May-12 | May-24 | |||||||||
EURO notes | (b) | €750 (approximately $972) | 2.75% | Mar-13 | Mar-25 | |||||||||
EURO notes | (b) | €500 (approximately $648) | 3.13% | Jun-13 | Jun-33 | |||||||||
Swiss franc notes | (b) | CHF325 (approximately $362) | 1.00% | Dec-11 | Dec-16 | |||||||||
Swiss franc notes | (b) | CHF200 (approximately $217) | 0.88% | Mar-13 | Mar-19 | |||||||||
Swiss franc notes | (b) | CHF325 (approximately $334) | 1.00% | Sep-12 | Sep-20 | |||||||||
Swiss franc notes | (b) | CHF300 (approximately $335) | 2.00% | Dec-11 | Dec-21 | |||||||||
(a) The notes are a further issuance of the 2.500% notes issued by PMI in May 2011. | ||||||||||||||
(b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. | ||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||||||||
Aggregate maturities of long-term debt are as follows: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | 1,255 | ||||||||||||
2015 | 1,439 | |||||||||||||
2016 | 2,654 | |||||||||||||
2017 | 1,302 | |||||||||||||
2018 | 2,502 | |||||||||||||
2019-2023 | 8,389 | |||||||||||||
2024-2028 | 2,010 | |||||||||||||
Thereafter | 5,988 | |||||||||||||
25,539 | ||||||||||||||
Debt discounts | (261 | ) | ||||||||||||
Total long-term debt | $ | 25,278 | ||||||||||||
Schedule of Committed Credit Facilities and Commercial Paper Outstanding [Table Text Block] | ' | |||||||||||||
At December 31, 2013, PMI’s total committed credit facilities and commercial paper outstanding were as follows: | ||||||||||||||
Type | Committed | Commercial | ||||||||||||
(in billions of dollars) | Credit | Paper | ||||||||||||
Facilities | ||||||||||||||
364-day revolving credit, expiring February 11, 2014 | $ | 2 | ||||||||||||
Multi-year revolving credit, expiring March 31, 2015 | 2.5 | |||||||||||||
Multi-year revolving credit, expiring October 25, 2016 | 3.5 | |||||||||||||
Total facilities | $ | 8 | ||||||||||||
Commercial paper outstanding | $ | 1.4 | ||||||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
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 | |||||||
Repurchased | Outstanding | ||||||||
Balances, January 1, 2011 | 2,109,316,331 | (307,532,841 | ) | 1,801,783,490 | |||||
Repurchase of shares | (80,514,257 | ) | (80,514,257 | ) | |||||
Exercise of stock options and issuance of other stock awards | 4,639,433 | 4,639,433 | |||||||
Balances, December 31, 2011 | 2,109,316,331 | (383,407,665 | ) | 1,725,908,666 | |||||
Repurchase of shares | (74,897,499 | ) | (74,897,499 | ) | |||||
Issuance of stock awards and exercise of stock options | 2,601,817 | 2,601,817 | |||||||
Balances, December 31, 2012 | 2,109,316,331 | (455,703,347 | ) | 1,653,612,984 | |||||
Repurchase of shares | (67,231,392 | ) | (67,231,392 | ) | |||||
Issuance of stock awards and exercise of stock options | 2,620,820 | 2,620,820 | |||||||
Balances, December 31, 2013 | 2,109,316,331 | (520,313,919 | ) | 1,589,002,412 | |||||
Stock_Plans_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ||||||||||||
Activity for Restricted Stock and Deferred Stock Awards | ' | ||||||||||||
During 2013, the activity for restricted stock and deferred stock awards was as follows: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Per Share | |||||||||||||
Balance at January 1, 2013 | 9,484,865 | $ | 62.44 | ||||||||||
Granted | 2,783,310 | 88.43 | |||||||||||
Vested | (3,276,901 | ) | 50.02 | ||||||||||
Forfeited | (171,974 | ) | 73.02 | ||||||||||
Balance at December 31, 2013 | 8,819,300 | $ | 75.05 | ||||||||||
Stock Option Awards | ' | ||||||||||||
At December 31, 2013, PMI shares subject to option that remain under the 2008 Plan were as follows: | |||||||||||||
Shares | Weighted- | Average | Aggregate | ||||||||||
Subject | Average | Remaining | Intrinsic | ||||||||||
to Option | Exercise | Contractual | Value | ||||||||||
Price | Term | ||||||||||||
Balance at January 1, 2013 | 36,811 | $ | 26.13 | ||||||||||
Options exercised | (14,097 | ) | 22.5 | ||||||||||
Options cancelled | — | — | |||||||||||
Balance/Exercisable at December 31, 2013 | 22,714 | $ | 28.38 | 0.4 years | $ | 1 | million | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Net earnings attributable to PMI | $ | 8,576 | $ | 8,800 | $ | 8,591 | ||||||
Less distributed and undistributed earnings attributable to share-based payment awards | 45 | 48 | 49 | |||||||||
Net earnings for basic and diluted EPS | $ | 8,531 | $ | 8,752 | $ | 8,542 | ||||||
Weighted-average shares for basic EPS | 1,622 | 1,692 | 1,761 | |||||||||
Plus incremental shares from assumed conversions: | ||||||||||||
Stock options | — | — | 1 | |||||||||
Weighted-average shares for diluted EPS | 1,622 | 1,692 | 1,762 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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, 2013, 2012 and 2011: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Earnings before income taxes | $ | 12,542 | $ | 13,004 | $ | 12,542 | ||||||
Provision for income taxes: | ||||||||||||
United States federal: | ||||||||||||
Current | $ | 247 | $ | 226 | $ | 270 | ||||||
Deferred | (5 | ) | (61 | ) | 118 | |||||||
Total United States | 242 | 165 | 388 | |||||||||
Outside United States: | ||||||||||||
Current | 3,451 | 3,855 | 3,368 | |||||||||
Deferred | (23 | ) | (187 | ) | (103 | ) | ||||||
Total outside United States | 3,428 | 3,668 | 3,265 | |||||||||
Total provision for income taxes | $ | 3,670 | $ | 3,833 | $ | 3,653 | ||||||
Schedule of Reconciliation of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance at January 1, | $ | 124 | $ | 104 | $ | 95 | ||||||
Additions based on tax positions related to the current year | 15 | 9 | 17 | |||||||||
Additions for tax positions of previous years | 3 | 309 | 8 | |||||||||
Reductions for tax positions of prior years | (2 | ) | (1 | ) | (8 | ) | ||||||
Reductions due to lapse of statute of limitations | (16 | ) | — | (7 | ) | |||||||
Settlements | (10 | ) | (297 | ) | — | |||||||
Other | — | — | (1 | ) | ||||||||
Balance at December 31, | $ | 114 | $ | 124 | $ | 104 | ||||||
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) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||
Unrecognized tax benefits | $ | 114 | $ | 124 | $ | 104 | ||||||
Accrued interest and penalties | 24 | 37 | 28 | |||||||||
Tax credits and other indirect benefits | (56 | ) | (72 | ) | (55 | ) | ||||||
Liability for tax contingencies | $ | 82 | $ | 89 | $ | 77 | ||||||
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, 2013, 2012 and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (decrease) resulting from: | ||||||||||||
Foreign rate differences | (12.2 | ) | (11.8 | ) | (12.5 | ) | ||||||
Dividend repatriation cost | 6.6 | 6 | 6.5 | |||||||||
Other | (0.1 | ) | 0.3 | 0.1 | ||||||||
Effective tax rate | 29.3 | % | 29.5 | % | 29.1 | % | ||||||
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) | 2013 | 2012 | ||||||||||
Deferred income tax assets: | ||||||||||||
Accrued postretirement and postemployment benefits | $ | 264 | $ | 279 | ||||||||
Accrued pension costs | 135 | 262 | ||||||||||
Inventory | 170 | 135 | ||||||||||
Accrued liabilities | 139 | 150 | ||||||||||
Foreign exchange | 146 | 52 | ||||||||||
Other | 144 | 139 | ||||||||||
Total deferred income tax assets | 998 | 1,017 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Trade names | (738 | ) | (816 | ) | ||||||||
Property, plant and equipment | (311 | ) | (320 | ) | ||||||||
Unremitted earnings | (735 | ) | (845 | ) | ||||||||
Total deferred income tax liabilities | (1,784 | ) | (1,981 | ) | ||||||||
Net deferred income tax liabilities | $ | (786 | ) | $ | (964 | ) |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Data | ' | |||||||||||
Segment data were as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Net revenues: | ||||||||||||
European Union | $ | 28,303 | $ | 27,338 | $ | 29,768 | ||||||
Eastern Europe, Middle East & Africa | 20,695 | 19,272 | 17,452 | |||||||||
Asia | 20,987 | 21,071 | 19,590 | |||||||||
Latin America & Canada | 10,044 | 9,712 | 9,536 | |||||||||
Net revenues(1) | $ | 80,029 | $ | 77,393 | $ | 76,346 | ||||||
Earnings before income taxes: | ||||||||||||
Operating companies income: | ||||||||||||
European Union | $ | 4,238 | $ | 4,187 | $ | 4,560 | ||||||
Eastern Europe, Middle East & Africa | 3,779 | 3,726 | 3,229 | |||||||||
Asia | 4,622 | 5,197 | 4,836 | |||||||||
Latin America & Canada | 1,134 | 1,043 | 988 | |||||||||
Amortization of intangibles | (93 | ) | (97 | ) | (98 | ) | ||||||
General corporate expenses | (187 | ) | (210 | ) | (183 | ) | ||||||
Less: | ||||||||||||
Equity (income)/loss in unconsolidated subsidiaries, net | 22 | 17 | 10 | |||||||||
Operating income | 13,515 | 13,863 | 13,342 | |||||||||
Interest expense, net | (973 | ) | (859 | ) | (800 | ) | ||||||
Earnings before income taxes | $ | 12,542 | $ | 13,004 | $ | 12,542 | ||||||
(1) Total net revenues attributable to customers located in Germany, PMI’s largest market in terms of net revenues, were $7.8 billion, $7.7 billion and $8.1 billion for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Depreciation Expense and Capital Expenditures by Segment | ' | |||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Depreciation expense: | ||||||||||||
European Union | $ | 190 | $ | 181 | $ | 210 | ||||||
Eastern Europe, Middle East & Africa | 227 | 211 | 227 | |||||||||
Asia | 277 | 315 | 358 | |||||||||
Latin America & Canada | 85 | 84 | 90 | |||||||||
779 | 791 | 885 | ||||||||||
Other | 10 | 10 | 10 | |||||||||
Total depreciation expense | $ | 789 | $ | 801 | $ | 895 | ||||||
Capital expenditures: | ||||||||||||
European Union | $ | 480 | $ | 391 | $ | 382 | ||||||
Eastern Europe, Middle East & Africa | 247 | 197 | 133 | |||||||||
Asia | 317 | 277 | 208 | |||||||||
Latin America & Canada | 156 | 127 | 140 | |||||||||
1,200 | 992 | 863 | ||||||||||
Other | — | 64 | 34 | |||||||||
Total capital expenditures | $ | 1,200 | $ | 1,056 | $ | 897 | ||||||
Long-Lived Assets By Segment | ' | |||||||||||
At December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Long-lived assets: | ||||||||||||
European Union | $ | 3,403 | $ | 3,065 | $ | 2,938 | ||||||
Eastern Europe, Middle East & Africa | 1,265 | 1,215 | 1,094 | |||||||||
Asia | 1,758 | 1,824 | 1,681 | |||||||||
Latin America & Canada | 759 | 719 | 678 | |||||||||
7,185 | 6,823 | 6,391 | ||||||||||
Other | 208 | 139 | 146 | |||||||||
Total long-lived assets | $ | 7,393 | $ | 6,962 | $ | 6,537 | ||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Fair Value of Pension Plan Assets | ' | |||||||||||||||||||||||
The fair value of PMI’s pension plan assets at December 31, 2013 and 2012, by asset category was as follows: | ||||||||||||||||||||||||
Asset Category | At December 31, 2013 | Quoted Prices | Significant | Significant | ||||||||||||||||||||
(in millions) | In Active | Other | Unobservable | |||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets/Liabilities | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 608 | $ | 608 | $ | — | $ | — | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. securities | 119 | 119 | — | — | ||||||||||||||||||||
International securities | 1,280 | 1,280 | — | — | ||||||||||||||||||||
Investment funds(a) | 4,508 | 2,805 | 1,703 | — | ||||||||||||||||||||
International government bonds | 317 | 313 | 4 | — | ||||||||||||||||||||
Corporate bonds | 2 | 2 | — | — | ||||||||||||||||||||
Other | 37 | 37 | — | — | ||||||||||||||||||||
Total | $ | 6,871 | $ | 5,164 | $ | 1,707 | $ | — | ||||||||||||||||
(a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 61% are invested in U.S. and international equities; 24% are invested in U.S. and international government bonds; 8% are invested in corporate bonds, and 7% are invested in real estate and other money markets. | ||||||||||||||||||||||||
Asset Category | At December 31, 2012 | Quoted Prices | Significant | Significant | ||||||||||||||||||||
(in millions) | In Active | Other | Unobservable | |||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets/Liabilities | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 420 | $ | 420 | $ | — | $ | — | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. securities | 106 | 106 | — | — | ||||||||||||||||||||
International securities | 1,129 | 1,129 | — | — | ||||||||||||||||||||
Investment funds(b)(c) | 3,805 | 2,313 | 1,492 | — | ||||||||||||||||||||
International government bonds | 411 | 411 | — | — | ||||||||||||||||||||
Corporate bonds | 3 | 3 | — | — | ||||||||||||||||||||
Other | 37 | 37 | — | — | ||||||||||||||||||||
Total | $ | 5,911 | $ | 4,419 | $ | 1,492 | $ | — | ||||||||||||||||
(b) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 60% are invested in U.S. and international equities; 24% are invested in U.S. and international government bonds; 9% are invested in corporate bonds, and 7% are invested in real estate and other money markets. | ||||||||||||||||||||||||
(c) Mutual funds in the amount of $1,363 million were transferred from Level 2 to Level 1 because they are actively traded on a daily basis. | ||||||||||||||||||||||||
Amounts Recorded in Accumulated Other Comprehensive Losses | ' | |||||||||||||||||||||||
The amounts recorded in accumulated other comprehensive losses at December 31, 2013, consisted of the following: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Net losses | $ | (1,746 | ) | $ | (47 | ) | $ | (661 | ) | $ | (2,454 | ) | ||||||||||||
Prior service cost | (51 | ) | 7 | — | (44 | ) | ||||||||||||||||||
Net transition obligation | (6 | ) | — | — | (6 | ) | ||||||||||||||||||
Deferred income taxes | 245 | 14 | 199 | 458 | ||||||||||||||||||||
Losses to be amortized | $ | (1,558 | ) | $ | (26 | ) | $ | (462 | ) | $ | (2,046 | ) | ||||||||||||
The amounts recorded in accumulated other comprehensive losses at December 31, 2012, consisted of the following: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Net losses | $ | (3,199 | ) | $ | (82 | ) | $ | (612 | ) | $ | (3,893 | ) | ||||||||||||
Prior service cost | (60 | ) | 7 | — | (53 | ) | ||||||||||||||||||
Net transition obligation | (7 | ) | — | — | (7 | ) | ||||||||||||||||||
Deferred income taxes | 377 | 26 | 185 | 588 | ||||||||||||||||||||
Losses to be amortized | $ | (2,889 | ) | $ | (49 | ) | $ | (427 | ) | $ | (3,365 | ) | ||||||||||||
59 | ||||||||||||||||||||||||
The amounts recorded in accumulated other comprehensive losses at December 31, 2011, consisted of the following: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Net losses | $ | (2,401 | ) | $ | (54 | ) | $ | (536 | ) | $ | (2,991 | ) | ||||||||||||
Prior service cost | (70 | ) | 3 | — | (67 | ) | ||||||||||||||||||
Net transition obligation | (8 | ) | — | — | (8 | ) | ||||||||||||||||||
Deferred income taxes | 299 | 19 | 163 | 481 | ||||||||||||||||||||
Losses to be amortized | $ | (2,180 | ) | $ | (32 | ) | $ | (373 | ) | $ | (2,585 | ) | ||||||||||||
Movements in Other Comprehensive Earnings (Losses) | ' | |||||||||||||||||||||||
The movements in other comprehensive earnings (losses) during the year ended December 31, 2013, were as follows: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Amounts transferred to earnings as components of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | $ | 216 | $ | 5 | $ | 60 | $ | 281 | ||||||||||||||||
Prior service cost | 10 | — | — | 10 | ||||||||||||||||||||
Net transition obligation | — | — | — | — | ||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||
Net losses | 1 | — | — | 1 | ||||||||||||||||||||
Deferred income taxes | (29 | ) | (2 | ) | (18 | ) | (49 | ) | ||||||||||||||||
198 | 3 | 42 | 243 | |||||||||||||||||||||
Other movements during the year: | ||||||||||||||||||||||||
Net losses | 1,236 | 30 | (109 | ) | 1,157 | |||||||||||||||||||
Prior service cost | (1 | ) | — | — | (1 | ) | ||||||||||||||||||
Net transition obligation | 1 | — | — | 1 | ||||||||||||||||||||
Deferred income taxes | (103 | ) | (10 | ) | 32 | (81 | ) | |||||||||||||||||
1,133 | 20 | (77 | ) | 1,076 | ||||||||||||||||||||
Total movements in other comprehensive earnings (losses) | $ | 1,331 | $ | 23 | $ | (35 | ) | $ | 1,319 | |||||||||||||||
The movements in other comprehensive earnings (losses) during the year ended December 31, 2012, were as follows: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Amounts transferred to earnings as components of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | $ | 129 | $ | 3 | $ | 53 | $ | 185 | ||||||||||||||||
Prior service cost | 10 | — | — | 10 | ||||||||||||||||||||
Net transition obligation | 1 | — | — | 1 | ||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||
Net losses | 4 | — | — | 4 | ||||||||||||||||||||
Deferred income taxes | (20 | ) | (1 | ) | (16 | ) | (37 | ) | ||||||||||||||||
124 | 2 | 37 | 163 | |||||||||||||||||||||
Other movements during the year: | ||||||||||||||||||||||||
Net losses | (931 | ) | (31 | ) | (129 | ) | (1,091 | ) | ||||||||||||||||
Prior service cost | — | 4 | — | 4 | ||||||||||||||||||||
Deferred income taxes | 98 | 8 | 38 | 144 | ||||||||||||||||||||
(833 | ) | (19 | ) | (91 | ) | (943 | ) | |||||||||||||||||
Total movements in other comprehensive losses | $ | (709 | ) | $ | (17 | ) | $ | (54 | ) | $ | (780 | ) | ||||||||||||
The movements in other comprehensive earnings (losses) during the year ended December 31, 2011, were as follows: | ||||||||||||||||||||||||
(in millions) | Pension | Post- | Post- | Total | ||||||||||||||||||||
retirement | employment | |||||||||||||||||||||||
Amounts transferred to earnings as components of net periodic benefit cost: | ||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | $ | 63 | $ | 3 | $ | 39 | $ | 105 | ||||||||||||||||
Prior service cost | 9 | (1 | ) | — | 8 | |||||||||||||||||||
Net transition obligation | 1 | — | — | 1 | ||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||
Net losses | 3 | — | — | 3 | ||||||||||||||||||||
Deferred income taxes | (10 | ) | (1 | ) | (12 | ) | (23 | ) | ||||||||||||||||
66 | 1 | 27 | 94 | |||||||||||||||||||||
Other movements during the year: | ||||||||||||||||||||||||
Net losses | (1,042 | ) | (11 | ) | (107 | ) | (1,160 | ) | ||||||||||||||||
Prior service cost | (17 | ) | — | — | (17 | ) | ||||||||||||||||||
Deferred income taxes | 110 | 5 | 33 | 148 | ||||||||||||||||||||
(949 | ) | (6 | ) | (74 | ) | (1,029 | ) | |||||||||||||||||
Total movements in other comprehensive losses | $ | (883 | ) | $ | (5 | ) | $ | (47 | ) | $ | (935 | ) | ||||||||||||
60 | ||||||||||||||||||||||||
Postretirement [Member] | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Change in Benefit Obligations | ' | |||||||||||||||||||||||
PMI’s postretirement health care plans are not funded. The changes in the accumulated benefit obligation and net amount accrued at December 31, 2013 and 2012, were as follows: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Accumulated postretirement benefit obligation at January 1, | $ | 132 | $ | 115 | $ | 113 | $ | 96 | ||||||||||||||||
Service cost | 3 | 2 | 2 | 2 | ||||||||||||||||||||
Interest cost | 5 | 5 | 5 | 5 | ||||||||||||||||||||
Benefits paid | (5 | ) | (4 | ) | (5 | ) | (5 | ) | ||||||||||||||||
Assumption changes | (23 | ) | 10 | (5 | ) | 11 | ||||||||||||||||||
Actuarial losses (gains) | 1 | 4 | (3 | ) | 6 | |||||||||||||||||||
Plan changes | — | — | (1 | ) | (3 | ) | ||||||||||||||||||
Currency | — | — | (6 | ) | 1 | |||||||||||||||||||
Accumulated postretirement benefit obligation at December 31, | $ | 113 | $ | 132 | $ | 100 | $ | 113 | ||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | |||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s postretirement benefit obligations at December 31, 2013 and 2012: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4.95 | % | 4.05 | % | 5.07 | % | 4.59 | % | ||||||||||||||||
Health care cost trend rate assumed for next year | 7 | 7.5 | 6.14 | 6.46 | ||||||||||||||||||||
Ultimate trend rate | 5 | 5 | 4.87 | 4.88 | ||||||||||||||||||||
Year that rate reaches the ultimate trend rate | 2018 | 2018 | 2029 | 2029 | ||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Net postretirement health care costs consisted of the following for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Service cost | $ | 3 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | ||||||||||||
Interest cost | 5 | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | 3 | 2 | 1 | 2 | 1 | 1 | ||||||||||||||||||
Net postretirement health care costs | $ | 11 | $ | 9 | $ | 8 | $ | 9 | $ | 8 | $ | 8 | ||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Cost | ' | |||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s net postretirement costs for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.05 | % | 4.5 | % | 5.4 | % | 4.59 | % | 5.45 | % | 5.14 | % | ||||||||||||
Health care cost trend rate | 7.5 | 7.5 | 8 | 6.46 | 6.55 | 6.29 | ||||||||||||||||||
Estimated Future Benefit Payments | ' | |||||||||||||||||||||||
PMI’s estimated future benefit payments for its postretirement health care plans at December 31, 2013, are as follows: | ||||||||||||||||||||||||
(in millions) | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2014 | $ | 5 | $ | 6 | ||||||||||||||||||||
2015 | 5 | 5 | ||||||||||||||||||||||
2016 | 6 | 5 | ||||||||||||||||||||||
2017 | 6 | 5 | ||||||||||||||||||||||
2018 | 6 | 5 | ||||||||||||||||||||||
2019 - 2023 | 33 | 26 | ||||||||||||||||||||||
Defined Benefit Plan Assumed Health Care Trend Rates | ' | |||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care trend rates would have the following effects as of December 31, 2013: | ||||||||||||||||||||||||
One-Percentage-Point Increase | One-Percentage-Point Decrease | |||||||||||||||||||||||
Effect on total service and interest cost | 18.2 | % | (14.0 | )% | ||||||||||||||||||||
Effect on postretirement benefit obligation | 14.1 | (11.6 | ) | |||||||||||||||||||||
Postemployment Benefit Plans [Member] | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Net postemployment costs consisted of the following: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Service cost | $ | 34 | $ | 30 | $ | 28 | ||||||||||||||||||
Interest cost | 20 | 22 | 22 | |||||||||||||||||||||
Amortization of net loss | 60 | 53 | 39 | |||||||||||||||||||||
Other expense | 84 | 75 | 106 | |||||||||||||||||||||
Net postemployment costs | $ | 198 | $ | 180 | $ | 195 | ||||||||||||||||||
Change in Benefit Obligations of Postemployment Benefit Plans | ' | |||||||||||||||||||||||
The changes in the benefit obligations of the plans at December 31, 2013 and 2012, were as follows: | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||
Accrued postemployment costs at January 1, | $ | 682 | $ | 619 | ||||||||||||||||||||
Service cost | 34 | 30 | ||||||||||||||||||||||
Interest cost | 20 | 22 | ||||||||||||||||||||||
Benefits paid | (173 | ) | (196 | ) | ||||||||||||||||||||
Actuarial losses | 109 | 129 | ||||||||||||||||||||||
Other | 91 | 78 | ||||||||||||||||||||||
Accrued postemployment costs at December 31, | $ | 763 | $ | 682 | ||||||||||||||||||||
Obligations and Funded Status [Member] | Pension [Member] | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Change in Benefit Obligations | ' | |||||||||||||||||||||||
The benefit obligations, plan assets and funded status of PMI’s pension plans at December 31, 2013 and 2012, were as follows: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Benefit obligation at January 1, | $ | 383 | $ | 352 | $ | 7,262 | $ | 5,625 | ||||||||||||||||
Service cost | 7 | 6 | 255 | 189 | ||||||||||||||||||||
Interest cost | 16 | 16 | 169 | 189 | ||||||||||||||||||||
Benefits paid | (13 | ) | (16 | ) | (156 | ) | (160 | ) | ||||||||||||||||
Termination, settlement and curtailment | — | — | (3 | ) | (8 | ) | ||||||||||||||||||
Assumption changes | (45 | ) | 28 | (894 | ) | 1,176 | ||||||||||||||||||
Actuarial losses (gains) | 16 | (3 | ) | 76 | 41 | |||||||||||||||||||
Currency | — | — | 141 | 167 | ||||||||||||||||||||
Other | — | — | 43 | 43 | ||||||||||||||||||||
Benefit obligation at December 31, | 364 | 383 | 6,893 | 7,262 | ||||||||||||||||||||
Fair value of plan assets at January 1, | 284 | 269 | 5,627 | 4,778 | ||||||||||||||||||||
Actual return on plan assets | 33 | 27 | 731 | 625 | ||||||||||||||||||||
Employer contributions | 1 | 4 | 149 | 203 | ||||||||||||||||||||
Employee contributions | — | — | 47 | 47 | ||||||||||||||||||||
Benefits paid | (13 | ) | (16 | ) | (156 | ) | (160 | ) | ||||||||||||||||
Termination, settlement and curtailment | — | — | (2 | ) | (5 | ) | ||||||||||||||||||
Currency | — | — | 170 | 139 | ||||||||||||||||||||
Fair value of plan assets at December 31, | 305 | 284 | 6,566 | 5,627 | ||||||||||||||||||||
Net pension liability recognized at December 31, | $ | (59 | ) | $ | (99 | ) | $ | (327 | ) | $ | (1,635 | ) | ||||||||||||
Pension Liabilities Recognized in Consolidated Balance Sheets | ' | |||||||||||||||||||||||
At December 31, 2013 and 2012, the combined U.S. and non-U.S. pension plans resulted in a net pension liability of $386 million and $1,734 million, respectively. These amounts were recognized in PMI’s consolidated balance sheets at December 31, 2013 and 2012, as follows: | ||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||
Other assets | $ | 151 | $ | 29 | ||||||||||||||||||||
Accrued liabilities — employment costs | (55 | ) | (22 | ) | ||||||||||||||||||||
Long-term employment costs | (482 | ) | (1,741 | ) | ||||||||||||||||||||
$ | (386 | ) | $ | (1,734 | ) | |||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | |||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s benefit obligations at December 31: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4.8 | % | 4.05 | % | 3.09 | % | 2.38 | % | ||||||||||||||||
Rate of compensation increase | 3 | 3.5 | 2.34 | 2.61 | ||||||||||||||||||||
Net Periodic Benefit Cost [Member] | Pension [Member] | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | |||||||||||||||||||||||
The following weighted-average assumptions were used to determine PMI’s net pension cost: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.05 | % | 4.5 | % | 5.4 | % | 2.38 | % | 3.4 | % | 4 | % | ||||||||||||
Expected rate of return on plan assets | 5.7 | 5.7 | 6.25 | 6.11 | 6.21 | 6.21 | ||||||||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | 2.61 | 2.66 | 2.9 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Net periodic pension cost consisted of the following for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 5 | $ | 255 | $ | 189 | $ | 178 | ||||||||||||
Interest cost | 16 | 16 | 16 | 169 | 189 | 205 | ||||||||||||||||||
Expected return on plan assets | (16 | ) | (15 | ) | (15 | ) | (347 | ) | (320 | ) | (323 | ) | ||||||||||||
Amortization: | ||||||||||||||||||||||||
Net losses | 11 | 9 | 5 | 205 | 120 | 58 | ||||||||||||||||||
Prior service cost | 1 | 1 | 1 | 9 | 9 | 8 | ||||||||||||||||||
Net transition obligation | — | — | — | — | 1 | 1 | ||||||||||||||||||
Termination, settlement and curtailment | — | 2 | 2 | 1 | — | 1 | ||||||||||||||||||
Net periodic pension cost | $ | 19 | $ | 19 | $ | 14 | $ | 292 | $ | 188 | $ | 128 | ||||||||||||
Plan Assets [Member] | Pension [Member] | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Estimated Future Benefit Payments | ' | |||||||||||||||||||||||
The estimated future benefit payments from PMI pension plans at December 31, 2013, are as follows: | ||||||||||||||||||||||||
(in millions) | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
2014 | $ | 48 | $ | 246 | ||||||||||||||||||||
2015 | 18 | 255 | ||||||||||||||||||||||
2016 | 18 | 250 | ||||||||||||||||||||||
2017 | 21 | 260 | ||||||||||||||||||||||
2018 | 19 | 276 | ||||||||||||||||||||||
2019 - 2023 | 119 | 1,576 | ||||||||||||||||||||||
Additional_Information_Tables
Additional Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Additional Information [Abstract] | ' | |||||||||||
Schedule of Additional Information | ' | |||||||||||
Additional Information: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Research and development expense | $ | 449 | $ | 415 | $ | 413 | ||||||
Advertising expense | $ | 435 | $ | 483 | $ | 464 | ||||||
Interest expense | $ | 1,104 | $ | 1,007 | $ | 934 | ||||||
Interest income | (131 | ) | (148 | ) | (134 | ) | ||||||
Interest expense, net | $ | 973 | $ | 859 | $ | 800 | ||||||
Rent expense | $ | 334 | $ | 318 | $ | 308 | ||||||
Minimum Rental Commitments under Non-Cancelable Operating Leases | ' | |||||||||||
Minimum rental commitments under non-cancelable operating leases in effect at December 31, 2013, were as follows: | ||||||||||||
(in millions) | ||||||||||||
2014 | $ | 218 | ||||||||||
2015 | 160 | |||||||||||
2016 | 124 | |||||||||||
2017 | 81 | |||||||||||
2018 | 52 | |||||||||||
Thereafter | 211 | |||||||||||
$ | 846 | |||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Fair Value of Foreign Exchange Contracts | ' | ||||||||||||||||||||||||||
The fair value of PMI’s foreign exchange contracts included in the consolidated balance sheet as of December 31, 2013 and 2012, were as follows: | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||
(in millions) | Balance Sheet Classification | 2013 | 2012 | Balance Sheet Classification | 2013 | 2012 | |||||||||||||||||||||
Foreign exchange contracts designated as hedging instruments | Other current | $ | 111 | $ | 146 | Other accrued | $ | 44 | $ | 8 | |||||||||||||||||
assets | liabilities | ||||||||||||||||||||||||||
Other assets | — | — | Other liabilities | 46 | — | ||||||||||||||||||||||
Foreign exchange contracts not designated as hedging instruments | Other current | 42 | 14 | Other accrued | 12 | 47 | |||||||||||||||||||||
assets | liabilities | ||||||||||||||||||||||||||
Other liabilities | 14 | — | |||||||||||||||||||||||||
Total derivatives | $ | 153 | $ | 160 | $ | 116 | $ | 55 | |||||||||||||||||||
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings | ' | ||||||||||||||||||||||||||
Hedging activities, which represent movement in derivatives as well as the respective underlying transactions, had the following effect on PMI’s consolidated statements of earnings and other comprehensive earnings: | |||||||||||||||||||||||||||
: | |||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||
(in millions) | Cash Flow | Net Investment | Other | Income | Total | ||||||||||||||||||||||
Hedges | Hedges | Derivatives | Taxes | ||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||||||||
Net revenues | $ | 319 | $ | — | $ | 319 | |||||||||||||||||||||
Cost of sales | 6 | — | 6 | ||||||||||||||||||||||||
Marketing, administration and research costs | — | 1 | 1 | ||||||||||||||||||||||||
Operating income | 325 | 1 | 326 | ||||||||||||||||||||||||
Interest expense, net | (56 | ) | 3 | (53 | ) | ||||||||||||||||||||||
Earnings before income taxes | 269 | 4 | 273 | ||||||||||||||||||||||||
Provision for income taxes | (34 | ) | 2 | (32 | ) | ||||||||||||||||||||||
Net earnings attributable to PMI | $ | 235 | $ | 6 | $ | 241 | |||||||||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||||||||
Gains transferred to earnings | $ | (269 | ) | $ | 34 | $ | (235 | ) | |||||||||||||||||||
Recognized gains | 236 | (30 | ) | 206 | |||||||||||||||||||||||
Net impact on equity | $ | (33 | ) | $ | 4 | $ | (29 | ) | |||||||||||||||||||
Currency translation adjustments | $ | (79 | ) | $ | 27 | $ | (52 | ) | |||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||
(in millions) | Cash Flow | Net Investment | Other | Income | Total | ||||||||||||||||||||||
Hedges | Hedges | Derivatives | Taxes | ||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||||||||
Net revenues | $ | 66 | $ | — | $ | 66 | |||||||||||||||||||||
Cost of sales | 19 | — | 19 | ||||||||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||||||||
Operating income | 85 | — | 85 | ||||||||||||||||||||||||
Interest expense, net | (60 | ) | 14 | (46 | ) | ||||||||||||||||||||||
Earnings before income taxes | 25 | 14 | 39 | ||||||||||||||||||||||||
Provision for income taxes | (3 | ) | 1 | (2 | ) | ||||||||||||||||||||||
Net earnings attributable to PMI | $ | 22 | $ | 15 | $ | 37 | |||||||||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||||||||
Gains transferred to earnings | $ | (25 | ) | $ | 3 | $ | (22 | ) | |||||||||||||||||||
Recognized gains | 113 | (14 | ) | 99 | |||||||||||||||||||||||
Net impact on equity | $ | 88 | $ | (11 | ) | $ | 77 | ||||||||||||||||||||
Currency translation adjustments | $ | (19 | ) | $ | 5 | $ | (14 | ) | |||||||||||||||||||
62 | |||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||||||
(in millions) | Cash | Net | Other | Income | Total | ||||||||||||||||||||||
Flow | Investment | Derivatives | Taxes | ||||||||||||||||||||||||
Hedges | Hedges | ||||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||||||||
Net revenues | $ | (17 | ) | $ | — | $ | (17 | ) | |||||||||||||||||||
Cost of sales | 34 | — | 34 | ||||||||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||||||||
Operating income | 17 | — | 17 | ||||||||||||||||||||||||
Interest expense, net | (37 | ) | 56 | 19 | |||||||||||||||||||||||
Earnings before income taxes | (20 | ) | 56 | 36 | |||||||||||||||||||||||
Provision for income taxes | 2 | (13 | ) | (11 | ) | ||||||||||||||||||||||
Net earnings attributable to PMI | $ | (18 | ) | $ | 43 | $ | 25 | ||||||||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||||||||
Losses transferred to earnings | $ | 20 | $ | (2 | ) | $ | 18 | ||||||||||||||||||||
Recognized losses | (4 | ) | (1 | ) | (5 | ) | |||||||||||||||||||||
Net impact on equity | $ | 16 | $ | (3 | ) | $ | 13 | ||||||||||||||||||||
Currency translation adjustments | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||
Pre-Tax Effect of Foreign Exchange Contracts Designated as Cash Flow Hedging Instruments | ' | ||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, foreign exchange contracts that were designated as cash flow hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||||||||
(pre-tax, in millions) | For the Years Ended December 31, | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||||||||
Classification of Gain/(Loss) | Reclassified from Other | Recognized in Other | |||||||||||||||||||||||||
Reclassified from Other | Comprehensive Earnings/(Losses) into Earnings | Comprehensive | |||||||||||||||||||||||||
Comprehensive Earnings/(Losses) into Earnings | Earnings/(Losses) on Derivatives | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Foreign exchange contracts | $ | 236 | $ | 113 | $ | (4 | ) | ||||||||||||||||||||
Net revenues | $ | 319 | $ | 66 | $ | (17 | ) | ||||||||||||||||||||
Cost of sales | 6 | 19 | 34 | ||||||||||||||||||||||||
Interest expense, net | (56 | ) | (60 | ) | (37 | ) | |||||||||||||||||||||
Total | $ | 269 | $ | 25 | $ | (20 | ) | $ | 236 | $ | 113 | $ | (4 | ) | |||||||||||||
Pre-Tax Effect of Foreign Exchange Contracts Designated as Net Investment Hedging Instruments | ' | ||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, foreign exchange contracts that were designated as net investment hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||||||||
(pre-tax, in millions) | For the Years Ended December 31, | ||||||||||||||||||||||||||
Derivatives in Net Investment | Statement of Earnings | Amount of | Amount of | ||||||||||||||||||||||||
Hedging Relationship | Classification of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | Gain/(Loss) | Gain/(Loss) | ||||||||||||||||||||||||
Reclassified | Recognized in | ||||||||||||||||||||||||||
from Other | Other | ||||||||||||||||||||||||||
Comprehensive | Comprehensive | ||||||||||||||||||||||||||
Earnings/(Losses) into Earnings | Earnings/(Losses) on Derivatives | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Foreign exchange contracts | $ | (79 | ) | $ | (19 | ) | $ | 2 | |||||||||||||||||||
Interest expense, net | $ | — | $ | — | $ | — | |||||||||||||||||||||
Pre-Tax Effect of Foreign Exchange Contracts not Designated as Hedging Instruments | ' | ||||||||||||||||||||||||||
As a result, for the years ended December 31, 2013, 2012 and 2011, these items impacted the consolidated statement of earnings as follows: | |||||||||||||||||||||||||||
(pre-tax, in millions) | |||||||||||||||||||||||||||
Derivatives not Designated as Hedging | Statement of Earnings | Amount of Gain/(Loss) | |||||||||||||||||||||||||
Instruments | Classification of | Recognized in Earnings | |||||||||||||||||||||||||
Gain/(Loss) | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||
Marketing, administration | $ | 1 | $ | — | $ | — | |||||||||||||||||||||
and research costs | |||||||||||||||||||||||||||
Interest expense, net | 3 | 14 | 56 | ||||||||||||||||||||||||
Total | $ | 4 | $ | 14 | $ | 56 | |||||||||||||||||||||
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) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Gain as of January 1, | $ | 92 | $ | 15 | $ | 2 | |||||||||||||||||||||
Derivative (gains)/losses transferred to earnings | (235 | ) | (22 | ) | 18 | ||||||||||||||||||||||
Change in fair value | 206 | 99 | (5 | ) | |||||||||||||||||||||||
Gain as of December 31, | $ | 63 | $ | 92 | $ | 15 | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | |||||||||||||||
The aggregate fair values of PMI’s derivative financial instruments, pension plan assets and debt as of December 31, 2013 and 2012, were as follows: | ||||||||||||||||
(in millions) | Fair Value At | Quoted Prices in Active Markets for | Significant Other | Significant | ||||||||||||
December 31, 2013 | Identical Assets/Liabilities | Observable Inputs | Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | 153 | $ | — | $ | 153 | $ | — | ||||||||
Pension plan assets | 6,871 | 5,164 | 1,707 | — | ||||||||||||
Total assets | $ | 7,024 | $ | 5,164 | $ | 1,860 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Debt | $ | 26,141 | $ | 25,961 | $ | 180 | ||||||||||
Foreign exchange contracts | 116 | — | 116 | — | ||||||||||||
Total liabilities | $ | 26,257 | $ | 25,961 | $ | 296 | $ | — | ||||||||
(in millions) | Fair Value At | Quoted Prices in Active Markets for | Significant Other | Significant | ||||||||||||
31-Dec-12 | Identical Assets/Liabilities | Observable Inputs | Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | 160 | $ | — | $ | 160 | $ | — | ||||||||
Pension plan assets(a) | 5,911 | 4,419 | 1,492 | — | ||||||||||||
Total assets | $ | 6,071 | $ | 4,419 | $ | 1,652 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Debt | $ | 22,719 | $ | 22,316 | $ | 403 | $ | — | ||||||||
Foreign exchange contracts | 55 | — | 55 | — | ||||||||||||
Total liabilities | $ | 22,774 | $ | 22,316 | $ | 458 | $ | — | ||||||||
(a) Mutual funds in the amount of $1,363 million were transferred from Level 2 to Level 1 because they are actively traded on a daily basis. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Losses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
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) | 2013 | 2012 | 2011 | |||||||||
Currency translation adjustments | $ | (2,207 | ) | $ | (331 | ) | $ | (293 | ) | |||
Pension and other benefits | (2,046 | ) | (3,365 | ) | (2,585 | ) | ||||||
Derivatives accounted for as hedges | 63 | 92 | 15 | |||||||||
Total accumulated other comprehensive losses | $ | (4,190 | ) | $ | (3,604 | ) | $ | (2,863 | ) |
Contingencies_Tables
Contingencies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||
Schedule of Tobacco Related Cases Pending Against Company | ' | |||||||||
The table below lists the number of tobacco-related cases pending against us and/or our subsidiaries or indemnitees as of December 31, 2013, December 31, 2012 and December 31, 2011: | ||||||||||
Type of Case | Number of Cases Pending as of December 31, 2013 | Number of Cases Pending as of | Number of Cases Pending as of | |||||||
31-Dec-12 | 31-Dec-11 | |||||||||
Individual Smoking and Health Cases | 62 | 76 | 75 | |||||||
Smoking and Health Class Actions | 11 | 11 | 10 | |||||||
Health Care Cost Recovery Actions | 15 | 15 | 11 | |||||||
Lights Class Actions | 1 | 2 | 2 | |||||||
Individual Lights Cases | 2 | 7 | 9 | |||||||
Public Civil Actions | 3 | 4 | 3 | |||||||
Schedule of Verdicts and Post Trial Developments | ' | |||||||||
The table below lists the verdicts and post-trial developments in the following cases where verdicts were returned in favor of plaintiffs: | ||||||||||
Date | Location of | Type of | Verdict | Post-Trial | ||||||
Court/Name of | Case | Developments | ||||||||
Plaintiff | ||||||||||
Sep-09 | Brazil/Bernhardt | Individual Smoking and Health | The Civil Court of Rio de Janeiro found for plaintiff and ordered Philip Morris Brasil to pay R$13,000 (approximately $5,500) in “moral damages.” | Philip Morris Brasil filed its appeal against the decision on the merits with the Court of Appeals in November 2009. In February 2010, without addressing the merits, the Court of Appeals annulled the trial court's decision and remanded the case to the trial court to issue a new ruling, which was required to address certain compensatory damage claims made by the plaintiff that the trial court did not address in its original ruling. In July 2010, the trial court reinstated its original decision, while specifically rejecting the compensatory damages claim. Philip Morris Brasil appealed this decision. | ||||||
In March 2011, the Court of Appeals affirmed the trial court's decision and denied Philip Morris Brasil's appeal. The Court of Appeals increased the amount of damages awarded to the plaintiff to R$100,000 (approximately $42,300). Philip Morris Brasil has appealed this decision. | ||||||||||
Date | Location of | Type of | Verdict | Post-Trial | ||||||
Court/Name of | Case | Developments | ||||||||
Plaintiff | ||||||||||
Feb-04 | Brazil/The Smoker Health Defense Association | Class Action | The Civil Court of São Paulo found defendants liable without hearing evidence. The court did not assess moral or actual damages, which were to be assessed in a second phase of the case. The size of the class was not defined in the ruling. | In April 2004, the court clarified its ruling, awarding “moral damages” of R$1,000 (approximately $420) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not award actual damages, which were to be assessed in the second phase of the case. The size of the class was not estimated. Defendants appealed to the São Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. Plaintiff has appealed. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that the plaintiff did not have standing to bring the lawsuit. This appeal is still pending. |
Balance_Sheet_Offsetting_Table
Balance Sheet Offsetting (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Balance Sheet Offsetting [Abstract] | ' | ||||||||||||||||||
Offsetting Assets and Liabilities | ' | ||||||||||||||||||
The effects of these foreign exchange contract assets and liabilities on PMI's consolidated balance sheets were as follows: | |||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the | |||||||||||||||
Consolidated | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||
Financial Instruments | Cash Collateral Received/Pledged | ||||||||||||||||||
Net Amount | |||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 153 | $ | — | $ | 153 | $ | (52 | ) | $ | (79 | ) | $ | 22 | |||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 116 | $ | — | $ | 116 | $ | (52 | ) | $ | (47 | ) | $ | 17 | |||||
At December 31, 2012 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 160 | $ | — | $ | 160 | $ | (24 | ) | $ | — | $ | 136 | ||||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 55 | $ | — | $ | 55 | $ | (24 | ) | $ | — | $ | 31 | ||||||
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Temporary Equity Disclosure [Abstract] | ' | |||
Movement in redeemable noncontrolling interest | ' | |||
The movement in redeemable noncontrolling interest during the years ended December 31, 2013, 2012 and 2011 was as follows: | ||||
(in millions) | ||||
Redeemable noncontrolling interest at January 1, 2011 | $ | 1,188 | ||
Share of net earnings | 97 | |||
Dividend payments | (73 | ) | ||
Currency translation | — | |||
Redeemable noncontrolling interest at December 31, 2011 | $ | 1,212 | ||
Share of net earnings | 171 | |||
Dividend payments | (105 | ) | ||
Currency translation | 25 | |||
Net loss and prior service cost | (2 | ) | ||
Redeemable noncontrolling interest at December 31, 2012 | $ | 1,301 | ||
Share of net earnings | 99 | |||
Dividend payments | (94 | ) | ||
Currency translation losses | (33 | ) | ||
Net loss and prior service cost | 2 | |||
Termination of rights agreement | (1,275 | ) | ||
Redeemable noncontrolling interest at December 31, 2013 | $ | — | ||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
2013 Quarters | ||||||||||||||||
(in millions, except per share data) | 1st | 2nd | 3rd | 4th | ||||||||||||
Net revenues | $ | 18,527 | $ | 20,483 | $ | 20,629 | $ | 20,390 | ||||||||
Gross profit | $ | 5,095 | $ | 5,216 | $ | 5,309 | $ | 5,187 | ||||||||
Net earnings attributable to PMI | $ | 2,125 | $ | 2,124 | $ | 2,340 | $ | 1,987 | ||||||||
Per share data: | ||||||||||||||||
Basic EPS | $ | 1.28 | $ | 1.3 | $ | 1.44 | $ | 1.24 | ||||||||
Diluted EPS | $ | 1.28 | $ | 1.3 | $ | 1.44 | $ | 1.24 | ||||||||
Dividends declared | $ | 0.85 | $ | 0.85 | $ | 0.94 | $ | 0.94 | ||||||||
Market price: | ||||||||||||||||
— High | $ | 93.61 | $ | 96.73 | $ | 91.4 | $ | 91.81 | ||||||||
— Low | $ | 84.33 | $ | 86.05 | $ | 82.86 | $ | 83.81 | ||||||||
2012 Quarters | ||||||||||||||||
(in millions, except per share data) | 1st | 2nd | 3rd | 4th | ||||||||||||
Net revenues | $ | 18,022 | $ | 20,037 | $ | 19,592 | $ | 19,742 | ||||||||
Gross profit | $ | 5,006 | $ | 5,454 | $ | 5,336 | $ | 5,208 | ||||||||
Net earnings attributable to PMI | $ | 2,161 | $ | 2,317 | $ | 2,227 | $ | 2,095 | ||||||||
Per share data: | ||||||||||||||||
Basic EPS | $ | 1.25 | $ | 1.36 | $ | 1.32 | $ | 1.25 | ||||||||
Diluted EPS | $ | 1.25 | $ | 1.36 | $ | 1.32 | $ | 1.25 | ||||||||
Dividends declared | $ | 0.77 | $ | 0.77 | $ | 0.85 | $ | 0.85 | ||||||||
Market price: | ||||||||||||||||
— High | $ | 88.86 | $ | 91.05 | $ | 93.6 | $ | 94.13 | ||||||||
— Low | $ | 72.85 | $ | 81.1 | $ | 86.11 | $ | 82.1 | ||||||||
Pre-Tax Charges Recorded in Earnings | ' | |||||||||||||||
During 2013 and 2012, PMI recorded the following pre-tax charges in earnings: | ||||||||||||||||
2013 Quarters | ||||||||||||||||
(in millions) | 1st | 2nd | 3rd | 4th | ||||||||||||
Asset impairment and exit costs | $ | 3 | $ | 5 | $ | — | $ | 301 | ||||||||
2012 Quarters | ||||||||||||||||
(in millions) | 1st | 2nd | 3rd | 4th | ||||||||||||
Asset impairment and exit costs | $ | 8 | $ | 8 | $ | 34 | $ | 33 | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Total depreciation expense | $789 | $801 | $895 |
Foreign currency net transaction losses | 123 | 51 | 24 |
Shipping and handling costs | 833 | 802 | 905 |
Excess tax benefits from the vesting of stock-based awards | $13 | $24 | $19 |
Building and Building Improvements [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets (years) | '40 years | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets (years) | '3 years | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of assets (years) | '15 years | ' | ' |
Software Costs [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of the software maximum (years) | '5 years | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Intangible assets, pre-tax amortization expense | $93 | $97 | $98 |
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | 93 | ' | ' |
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 93 | ' | ' |
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 93 | ' | ' |
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 93 | ' | ' |
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | $93 | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets, net (Goodwill and Other Intangible Assets, net, by Segment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $8,893 | $9,900 | $9,928 |
Other Intangible Assets, net | 3,193 | 3,619 | ' |
European Union [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 1,472 | 1,448 | 1,392 |
Other Intangible Assets, net | 604 | 647 | ' |
Eastern Europe, Middle East & Africa [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 617 | 637 | 666 |
Other Intangible Assets, net | 228 | 242 | ' |
Asia [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 3,960 | 4,791 | 4,966 |
Other Intangible Assets, net | 1,251 | 1,542 | ' |
Latin America & Canada [Member] | ' | ' | ' |
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 2,844 | 3,024 | 2,904 |
Other Intangible Assets, net | $1,110 | $1,188 | ' |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets, net (Movement in Goodwill) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | $9,900 | $9,928 |
Changes due to: | ' | ' |
Currency | -1,007 | -28 |
Ending Balance | 8,893 | 9,900 |
European Union [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 1,448 | 1,392 |
Changes due to: | ' | ' |
Currency | 24 | 56 |
Ending Balance | 1,472 | 1,448 |
Eastern Europe, Middle East & Africa [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 637 | 666 |
Changes due to: | ' | ' |
Currency | -20 | -29 |
Ending Balance | 617 | 637 |
Asia [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 4,791 | 4,966 |
Changes due to: | ' | ' |
Currency | -831 | -175 |
Ending Balance | 3,960 | 4,791 |
Latin America & Canada [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 3,024 | 2,904 |
Changes due to: | ' | ' |
Currency | -180 | 120 |
Ending Balance | $2,844 | $3,024 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Non-amortizable intangible assets | $1,798 | $2,046 |
Amortizable intangible assets, gross carrying amount | 1,940 | 2,046 |
Accumulated amortization | 545 | 473 |
Total Other Intangible Assets, Gross Carrying Amount | $3,738 | $4,092 |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets, net (Range of Useful Lives of Amortizable Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Distribution Networks [Member] | Distribution Networks [Member] | Distribution Networks [Member] | Non-Compete Agreements [Member] | Non-Compete Agreements [Member] | Non-Compete Agreements [Member] | Other (Including Farmer Contracts and Intellectual Property Rights) [Member] | Other (Including Farmer Contracts and Intellectual Property Rights) [Member] | Other (Including Farmer Contracts and Intellectual Property Rights) [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets, gross carrying amount | $1,940 | $2,046 | $1,586 | ' | ' | $160 | ' | ' | $135 | ' | ' | $59 | ' | ' |
Initial Estimated Useful Lines | ' | ' | ' | '2 years | '40 years | ' | '20 years | '30 years | ' | '3 years | '10 years | ' | '12 years 6 months | '17 years |
Weighted-Average Remaining Useful Life | ' | ' | '24 years | ' | ' | '14 years | ' | ' | '1 year | ' | ' | '12 years | ' | ' |
Investments_in_Unconsolidated_1
Investments in Unconsolidated Subsidiaries (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Unconsolidated subsidiaries [Member] | Unconsolidated subsidiaries [Member] | Unconsolidated subsidiaries [Member] | Unconsolidated subsidiaries [Member] | AITA [Member] | AITA [Member] | STAEM [Member] | Megapolis [Member] | Other Unconsolidated Subsidiaries [Member] | Other Unconsolidated Subsidiaries [Member] | Other Unconsolidated Subsidiaries [Member] | Other Unconsolidated Subsidiaries [Member] | Other Unconsolidated Subsidiaries [Member] | Other Unconsolidated Subsidiaries [Member] | Equity Method Investment Goodwill | ||
Minimum [Member] | Maximum [Member] | Eastern Europe, Middle East & Africa [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in unconsolidated subsidiaries | $1,536 | $24 | ' | ' | ' | ' | ' | ' | ' | ' | $42 | $24 | ' | ' | ' | ' | $519 |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | ' | ' | 579 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Amortization Period | ' | ' | ' | '4 years | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | 49.00% | 25.00% | 20.00% | ' | ' | 40.00% | 40.00% | 50.00% | 50.00% | ' |
Payments to Acquire Equity Method Investments | ' | ' | ' | ' | ' | ' | 625 | ' | ' | 750 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' |
Contingent Consideration Measurement Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Investments In Unconsolidated Subsidiaries Notes Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments Discounted Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | 86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Receivable, Related Parties, Current | ' | ' | ' | ' | ' | 470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable, Related Parties | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from Related Parties | ' | ' | ' | ' | ' | $345 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset_Impairment_and_Exit_Cost2
Asset Impairment and Exit Costs (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Separation program charges, pre-tax | $51 | $42 | $63 |
Total contract termination charges | 258 | 13 | 12 |
Cash payments related to exit costs | 21 | 57 | 98 |
Effect on future cash flows amount | 308 | ' | ' |
Pre-tax asset impairment charges | $0 | $28 | $34 |
Asset_Impairment_and_Exit_Cost3
Asset Impairment and Exit Costs (Schedule of Asset Impairment and Exit Costs) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total separation programs | ' | ' | ' | ' | ' | ' | ' | ' | $51 | $42 | $63 |
Total contract termination charges | ' | ' | ' | ' | ' | ' | ' | ' | 258 | 13 | 12 |
Total asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 28 | 34 |
Asset impairment and exit costs | 301 | 0 | 5 | 3 | 33 | 34 | 8 | 8 | 309 | 83 | 109 |
European Union [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total separation programs | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 0 | 35 |
Total asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5 | 10 |
Eastern Europe, Middle East & Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total separation programs | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 0 | 6 |
Total asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5 | 7 |
Asia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total separation programs | ' | ' | ' | ' | ' | ' | ' | ' | 19 | 13 | 7 |
Total asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 13 | 8 |
Latin America & Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total separation programs | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 29 | 15 |
Total asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5 | 9 |
Contract Termination [Member] | Eastern Europe, Middle East & Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contract termination charges | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 0 | 12 |
Contract Termination [Member] | Asia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contract termination charges | ' | ' | ' | ' | ' | ' | ' | ' | $8 | $13 | $0 |
Asset_Impairment_and_Exit_Cost4
Asset Impairment and Exit Costs (Movement in the Exit Cost Liabilities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Liability, beginning balance | $20 | $28 | ' |
Charges | 309 | 55 | ' |
Cash spent | -21 | -57 | -98 |
Currency/other | 0 | -6 | ' |
Liability, ending balance | $308 | $20 | $28 |
Acquisitions_and_Other_Busines1
Acquisitions and Other Business Arrangements (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2011 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
MEXICO | Jordan [Member] | Australia And New Zealand [Member] | Director [Member] | Grupo Carso [Member] | Grupo Carso [Member] | Grupo Carso [Member] | Grupo Carso [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | ||||
Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | MEXICO | ||||||||||||
MEXICO | MEXICO | MEXICO | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Date of Acquisition Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-May-13 | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-13 | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $703 | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nature of Common Ownership or Management Control Relationships | ' | ' | ' | ' | ' | ' | 'A director of PMI has an affiliation with Grupo Carso | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Related Parties, Current | ' | ' | ' | ' | ' | ' | ' | 38 | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 764 | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 672 | 1 | 2 | 672 |
Acquisition of business | ' | ' | ' | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Trademarks | ' | ' | ' | ' | ' | $20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indebtedness_Narrative_Details
Indebtedness (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Indebtedness [Line Items] | ' | ' |
Ratio of consolidated EBITDA to consolidated interest expense on a rolling 4 quarter basis, minimum | 3.5 | ' |
Ratio of consolidated EBITDA to consolidated interest expense on a rolling 4 quarter basis | 14.6 | ' |
Committed credit facilities, maximum borrowing capacity | $8,000,000,000 | ' |
Amount Outstanding | 2,400,000,000 | 2,419,000,000 |
Multi-year revolving credit, expiring October 25, 2016 [Member] | ' | ' |
Indebtedness [Line Items] | ' | ' |
Committed credit facilities, maximum borrowing capacity | 3,500,000,000 | ' |
Short Term Credit Arrangement [Member] | ' | ' |
Indebtedness [Line Items] | ' | ' |
Committed credit facilities, maximum borrowing capacity | 2,400,000,000 | 2,000,000,000 |
Multi-year revolving credit, expiring March 31, 2015 [Member] | ' | ' |
Indebtedness [Line Items] | ' | ' |
Committed credit facilities, maximum borrowing capacity | 2,500,000,000 | ' |
Bank Loans [Member] | ' | ' |
Indebtedness [Line Items] | ' | ' |
Amount Outstanding | $1,013,000,000 | $447,000,000 |
Indebtedness_ShortTerm_Borrowi
Indebtedness (Short-Term Borrowings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Amount Outstanding | $2,400 | $2,419 |
Commercial Paper [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Amount Outstanding | 1,387 | 1,972 |
Average Year-End Rate | 0.10% | 0.20% |
Bank Loans [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Amount Outstanding | $1,013 | $447 |
Average Year-End Rate | 5.70% | 6.60% |
Indebtedness_LongTerm_Debt_Det
Indebtedness (Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $25,278 | $20,420 |
Less current portion of long term debt | 1,255 | 2,781 |
Long-term debt | 24,023 | 17,639 |
US Dollar Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 16,500 | 14,702 |
Due through | '2043 | ' |
Interest rate, minimum | 0.29% | ' |
Interest rate, maximum | 6.88% | ' |
Interest rate, average | 4.11% | ' |
Euro Notes Payable Member | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 7,303 | 3,724 |
Due through | '2033 | ' |
Interest rate, minimum | 1.75% | ' |
Interest rate, maximum | 5.88% | ' |
Interest rate, average | 3.34% | ' |
Swiss Franc Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 1,289 | 1,579 |
Due through | '2021 | ' |
Interest rate, minimum | 0.88% | ' |
Interest rate, maximum | 2.00% | ' |
Interest rate, average | 1.24% | ' |
Other Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $186 | $415 |
Due through | '2024 | ' |
Interest rate, average | 3.62% | ' |
Indebtedness_Debt_Issuances_Ou
Indebtedness (Debt Issuances Outstanding) (Details) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||||||||||||
US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | US Dollar Notes [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | Foreign Currency Obligations [Member] | |||||||||||||
6.875% US Dollar Notes Due March 2014 [Member] | US Dollar Notes Due February 2015 [Member] | 2.5% US Dollar Notes Due May 2016 [Member] | 2.5% US Dollar Notes Due May 2016 [Member] | 1.625% US Dollar Notes Due March 2017 [Member] | 1.125% US Dollar Notes Due August 2017 [Member] | 5.650% US Dollar Notes Due May 2018 [Member] | 1.875% US Dollar Notes Due January 2019 [Member] | 4.5% US Dollar Notes Due March 2020 [Member] | 4.125% US Dollar Notes Due May 2021 [Member] | 2.900% US Dollar Notes Due November 2021 [Member] | 2.500% US Dollar Notes Due August 2022 [Member] | 2.625% US Dollar Notes Due March 2023 [Member] | 3.600% US Dollar Notes Due November 2023 [Member] | 6.375% Percent US Dollar Notes Due May 2038 [Member] | 4.375% US Dollar Notes Due November 2041 [Member] | 4.500% US Dollar Notes Due March 2042 [Member] | 3.875% US Dollar Notes Due August 2042 [Member] | 4.125% US Dollar Notes Due March 2043 [Member] | 4.875% US Dollar Notes Due November 2043 [Member] | 5.875% Euro Notes Due September 2015 [Member] | 5.875% Euro Notes Due September 2015 [Member] | 5.75% Euro Notes Due March 2016 [Member] | 5.75% Euro Notes Due March 2016 [Member] | 2.125% Euro Notes Due May 2019 [Member] | 2.125% Euro Notes Due May 2019 [Member] | 1.75% Euro Notes Due March 2020 [Member] | 1.75% Euro Notes Due March 2020 [Member] | 2.875% Euro Notes Due May 2024 [Member] | 2.875% Euro Notes Due May 2024 [Member] | 2.750% Euro Notes Due March 2025 [Member] | 2.750% Euro Notes Due March 2025 [Member] | 3.125% Euro Notes Due June 2033 [Member] | 3.125% Euro Notes Due June 2033 [Member] | 1.000% Swiss Franc Notes Due December 2016 [Member] | 1.000% Swiss Franc Notes Due December 2016 [Member] | 0.875% Swiss Franc Notes Due March 2019 [Member] | 0.875% Swiss Franc Notes Due March 2019 [Member] | 1.000% Swiss Franc Notes Due September 2020 [Member] | 1.000% Swiss Franc Notes Due September 2020 [Member] | 2.000% Swiss Franc Notes Due December 2021 [Member] | 2.000% Swiss Franc Notes Due December 2021 [Member] | |||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Face Value | $1,250 | $400 | $650 | $600 | $550 | $750 | $2,500 | $750 | $1,000 | $350 | $750 | $750 | $600 | $500 | $1,500 | $750 | $700 | $750 | $850 | $750 | $1,105 | [1] | € 750 | $976 | [1] | € 750 | $951 | [1] | € 750 | $1,621 | [1] | € 1,250 | $761 | [1] | € 600 | $972 | [1] | € 750 | $648 | [1] | € 500 | $362 | [1] | 325 | $217 | [1] | 200 | $334 | [1] | 325 | $335 | [1] | 300 | |
Interest Rate | 6.88% | ' | 2500000.00% | 2.50% | 1.63% | 1.13% | 5.65% | 1.88% | 4.50% | 4.13% | 2.90% | 2.50% | 2.63% | 3.60% | 6.38% | 4.38% | 4.50% | 3.88% | 4.13% | 4.88% | 5.88% | 5.88% | 5.75% | 5.75% | 2.13% | 2.13% | 1.75% | 1.75% | 2.88% | 2.88% | 2.75% | 2.75% | 3.13% | 3.13% | 1.00% | 1.00% | 0.88% | 0.88% | 1.00% | 1.00% | 2.00% | 2.00% | ||||||||||||
Issuance | 1-Nov-08 | ' | 1-May-11 | 1-Aug-11 | [2] | 1-Mar-12 | 1-Aug-12 | 1-May-08 | ' | 1-Mar-10 | 1-May-11 | 1-Nov-11 | 1-Aug-12 | ' | ' | 1-May-08 | 1-Nov-11 | 1-Mar-12 | 1-Aug-12 | ' | ' | 1-Sep-08 | 1-Sep-08 | 1-Mar-09 | 1-Mar-09 | 1-May-12 | 1-May-12 | ' | ' | 1-May-12 | 1-May-12 | ' | ' | ' | ' | 1-Dec-11 | 1-Dec-11 | ' | ' | 1-Sep-12 | 1-Sep-12 | 1-Dec-11 | 1-Dec-11 | |||||||||||
Maturity | 1-Mar-14 | 26-Feb-15 | 1-May-16 | 1-May-16 | 1-Mar-17 | 1-Aug-17 | 1-May-18 | 15-Jan-19 | 1-Mar-20 | 1-May-21 | 1-Nov-21 | 1-Aug-22 | 6-Mar-23 | 15-Nov-23 | 1-May-38 | 1-Nov-41 | 1-Mar-42 | 1-Aug-42 | 4-Mar-43 | 15-Nov-43 | 1-Sep-15 | 1-Sep-15 | 1-Mar-16 | 1-Mar-16 | 1-May-19 | 1-May-19 | 19-Mar-20 | 19-Mar-20 | 1-May-24 | 1-May-24 | 19-Mar-25 | 19-Mar-25 | 3-Jun-33 | 3-Jun-33 | 1-Dec-16 | 1-Dec-16 | 11-Mar-19 | 11-Mar-19 | 1-Sep-20 | 1-Sep-20 | 1-Dec-21 | 1-Dec-21 | ||||||||||||
[1] | USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The notes are a further issuance of the 2.500% notes issued by PMI in May 2011. |
Indebtedness_Aggregate_Maturit
Indebtedness (Aggregate Maturities of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $1,255 | $2,781 |
2015 | 1,439 | ' |
2016 | 2,654 | ' |
2017 | 1,302 | ' |
2018 | 2,502 | ' |
2019-2023 | 8,389 | ' |
2024-2028 | 2,010 | ' |
Thereafter | 5,988 | ' |
Long-term debt, gross | 25,539 | ' |
Debt discounts | -261 | ' |
Long-term debt | $25,278 | ' |
Indebtedness_Credit_Facilities
Indebtedness (Credit Facilities) (Details) (USD $) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' |
Committed credit facilities, maximum borrowing capacity | $8 |
Commercial paper outstanding | 1.4 |
364-day revolving credit, expiring February 11, 2014 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Initiation Date | 12-Feb-13 |
Term Of Credit Facility | '364 days |
Committed credit facilities, maximum borrowing capacity | 2 |
Multi-year revolving credit, expiring March 31, 2015 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Committed credit facilities, maximum borrowing capacity | 2.5 |
Multi-year revolving credit, expiring October 25, 2016 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Committed credit facilities, maximum borrowing capacity | $3.50 |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 27 Months Ended | 0 Months Ended | 18 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 1-May-10 | Jul. 31, 2012 | Aug. 01, 2012 | Dec. 31, 2013 | |
$12 Billion Dollar Share Repurchase Program 2010 [Member] | $12 Billion Dollar Share Repurchase Program 2010 [Member] | $18 Billion Dollar Share Repurchase Program 2012 [Member] | $18 Billion Dollar Share Repurchase Program 2012 [Member] | ||||
Capital Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 6,000,000,000 | ' | ' | ' | ' | ' | ' |
Common stock repurchase, amount authorized | ' | ' | ' | $12,000,000,000 | ' | $18,000,000,000 | ' |
Stock repurchase program, period in force (years) | ' | ' | ' | '3 years | ' | '3 years | ' |
Repurchase of shares | ' | ' | ' | ' | 179,100,000 | ' | 99,400,000 |
Stock repurchase program, completion date | ' | ' | ' | ' | 31-Jul-12 | ' | ' |
Acquired average price per share | ' | ' | ' | ' | $66.99 | ' | $89.03 |
Common stock repurchased | $6,000,000,000 | $6,500,000,000 | $5,400,000,000 | ' | ' | ' | $8,900,000,000 |
Shares of common stock reserved | 36,591,569 | ' | ' | ' | ' | ' | ' |
Preferred stock shares authorized | 250,000,000 | ' | ' | ' | ' | ' | ' |
Capital_Stock_Schedule_of_Comm
Capital Stock (Schedule of Common Stock) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Shares Issued [Member] | Shares Issued [Member] | Shares Issued [Member] | Shares Issued [Member] | Shares Repurchased [Member] | Shares Repurchased [Member] | Shares Repurchased [Member] | Shares Outstanding [Member] | Shares Outstanding [Member] | Shares Outstanding [Member] | |||
Capital Stock [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued, beginning of period | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | ' | ' | ' | ' | ' | ' |
Shares issued, end of period | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 | ' | ' | ' | ' | ' | ' |
Shares repurchased, beginning of period | -520,313,919 | -455,703,347 | ' | ' | ' | ' | -455,703,347 | -383,407,665 | -307,532,841 | ' | ' | ' |
Shares outstanding, beginning of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,653,612,984 | 1,725,908,666 | 1,801,783,490 |
Repurchase of shares | ' | ' | ' | ' | ' | ' | -67,231,392 | -74,897,499 | -80,514,257 | -67,231,392 | -74,897,499 | -80,514,257 |
Issuance of stock awards and exercise of stock options | ' | ' | ' | ' | ' | ' | 2,620,820 | 2,601,817 | 4,639,433 | 2,620,820 | 2,601,817 | 4,639,433 |
Shares repurchased, end of period | -520,313,919 | -455,703,347 | ' | ' | ' | ' | -520,313,919 | -455,703,347 | -383,407,665 | ' | ' | ' |
Shares outstanding, end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,589,002,412 | 1,653,612,984 | 1,725,908,666 |
Stock_Plans_Narrative_Details
Stock Plans (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Current Fiscal Year End Date | ' | '--12-31 | ' | ' |
Expected period for recognition of unamortized compensation expense, in years | ' | '2 years | ' | ' |
Minimum Retirement Age | ' | '58 years | ' | ' |
Total intrinsic value of stock options exercised | ' | $1 | $2 | $129 |
Restricted Stock and Deferred Stock Awards [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted-average grant date fair value of restricted stock and deferred stock awards granted to employees | ' | 246 | 258 | 229 |
Weighted-average grant date fair value, per share | ' | $88.43 | $79.59 | $59.44 |
Compensation expense for restricted stock and deferred stock awards | ' | 220 | 242 | 162 |
Accelerated compensation cost | 27 | ' | ' | ' |
Unamortized compensation cost related to restricted stock and deferred stock awards | ' | 225 | ' | ' |
Restricted stock and deferred stock awards vested | ' | 3,276,901 | 3,700,000 | 1,800,000 |
Restricted Stock and Deferred Stock Awards [Member] | Grant Date Fair Value [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Fair value of vested restricted stock and deferred stock awards | ' | 164 | 148 | 84 |
Restricted Stock and Deferred Stock Awards [Member] | Total Fair Value [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Fair value of vested restricted stock and deferred stock awards | ' | $296 | $298 | $107 |
2012 Performance Incentive Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Estimated common stock to be awarded under a stock benefit plan, maximum limit | ' | 30,000,000 | ' | ' |
Shares available for grant under the plan | ' | 27,211,610 | ' | ' |
Non Employee Directors Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Estimated common stock to be awarded under a stock benefit plan, maximum limit | ' | 1,000,000 | ' | ' |
Shares available for grant under the plan | ' | 783,905 | ' | ' |
Percentage of voting shares that PMI may own, used in determining non-employee director status | ' | 50.00% | ' | ' |
Stock_Plans_Activity_for_Restr
Stock Plans (Activity for Restricted Stock and Deferred Stock Awards) (Details) (Restricted Stock and Deferred Stock Awards [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock and Deferred Stock Awards [Member] | ' | ' | ' |
Number of Shares (in shares): | ' | ' | ' |
Beginning Balance | 9,484,865 | ' | ' |
Granted | 2,783,310 | ' | ' |
Vested | -3,276,901 | -3,700,000 | -1,800,000 |
Forfeited | -171,974 | ' | ' |
Ending Balance | 8,819,300 | 9,484,865 | ' |
Weighted-Average Grant Date Fair Value (in dollars per share): | ' | ' | ' |
Beginning Balance | $62.44 | ' | ' |
Granted | $88.43 | $79.59 | $59.44 |
Vested | $50.02 | ' | ' |
Forfeited | $73.02 | ' | ' |
Ending Balance | $75.05 | $62.44 | ' |
Stock_Plans_Stock_Option_Award
Stock Plans (Stock Option Awards) (Details) (Performance Incentive Plan2008 [Member], USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Performance Incentive Plan2008 [Member] | ' |
Shares Subject to Option (in shares): | ' |
Beginning Balance | 36,811 |
Options exercised | -14,097 |
Options cancelled | 0 |
Ending Balance | 22,714 |
Weighted-Average Exercise Price (in dollars per share): | ' |
Beginning Balance | $26.13 |
Options exercised | $22.50 |
Options cancelled | $0 |
Ending Balance | $28.38 |
Ending Balance, Average Remaining Contractual Term, Years | '4 months 24 days |
Ending Balance, Aggregate Intrinsic Value | $1 |
Earnings_per_Share_Narrative_D
Earnings per Share (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Antidilutive stock options | 0 | 0 | 0 |
Earnings_Per_Share_Calculation
Earnings Per Share (Calculation of Basic and Diluted EPS) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings attributable to PMI | $1,987 | $2,340 | $2,124 | $2,125 | $2,095 | $2,227 | $2,317 | $2,161 | $8,576 | $8,800 | $8,591 |
Less distributed and undistributed earnings attributable to share-based payment awards | ' | ' | ' | ' | ' | ' | ' | ' | 45 | 48 | 49 |
Net earnings for basic and diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | $8,531 | $8,752 | $8,542 |
Weighted-average shares for basic EPS | ' | ' | ' | ' | ' | ' | ' | ' | 1,622 | 1,692 | 1,761 |
Plus incremental shares from assumed conversions: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1 |
Weighted-average shares for diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | 1,622 | 1,692 | 1,762 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Internal Revenue Service (IRS) [Member] | Germany [Member] | Germany [Member] | MEXICO | Greece [Member] | Brazil [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | |||||
Altria [Member] | Indonesia [Member] | Russia [Member] | Switzerland [Member] | United States [Member] | |||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Fiscal Year End Date | ' | '--12-31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated earnings of foreign subsidiaries | ' | $20,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additions for tax positions of previous years | ' | 3,000,000 | 309,000,000 | 8,000,000 | 287,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits, settlements | ' | 10,000,000 | 297,000,000 | 0 | -296,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on effective tax rate due to a discrete tax event | ' | ' | ' | ' | 79,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | ' | 56,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Penalties and interest (expense) income recognized | ' | -10,000,000 | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | -1,000,000 | ' | ' | ' | ' |
Open Tax Year | ' | ' | ' | ' | ' | '2007 | ' | ' | ' | ' | ' | '2008 | '2010 | '2012 | '2007 |
Other Tax Expense (Benefit) | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Income Tax Expense Related to Tax Law Changes In Foreign Jurisdiction | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage increase in effective income tax rate | ' | -0.20% | 0.40% | 1.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective tax rate | ' | 29.30% | 29.50% | 29.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax effect resulting from change in accounting principle | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on effective tax rate, change in enacted tax rate | ' | ' | ' | ' | ' | ' | ' | ' | -11,000,000 | ' | ' | ' | ' | ' | ' |
Reversal of a valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($15,000,000) | ' | ' | ' | ' | ' |
Income_Taxes_Schedule_of_Earni
Income Taxes (Schedule of Earnings Before Income Taxes and Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Earnings before income taxes | $12,542 | $13,004 | $12,542 |
Current, United States federal | 247 | 226 | 270 |
Deferred, United States federal | -5 | -61 | 118 |
Total, United States federal | 242 | 165 | 388 |
Current, Outside United States | 3,451 | 3,855 | 3,368 |
Deferred, Outside United States | -23 | -187 | -103 |
Total outside United States | 3,428 | 3,668 | 3,265 |
Total provision for income taxes | $3,670 | $3,833 | $3,653 |
Income_Taxes_Schedule_of_Recon
Income Taxes (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' |
Balance at January 1, | $124 | $104 | $95 |
Additions based on tax positions related to the current year | 15 | 9 | 17 |
Additions for tax positions of previous years | 3 | 309 | 8 |
Reductions for tax positions of prior years | -2 | -1 | -8 |
Reductions due to lapse of statute of limitations | -16 | 0 | -7 |
Settlements | -10 | -297 | 0 |
Other | 0 | 0 | -1 |
Balance at December 31, | $114 | $124 | $104 |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Unrecognized tax benefits | $114 | $124 | $104 | $95 |
Accrued interest and penalties | 24 | 37 | 28 | ' |
Tax credits and other indirect benefits | -56 | -72 | -55 | ' |
Liability for tax contingencies | $82 | $89 | $77 | ' |
Income_Taxes_Schedule_of_Reaso
Income Taxes (Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate And Federal Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | ' | ' | ' |
Foreign rate differences | -12.20% | -11.80% | -12.50% |
Dividend repatriation cost | 6.60% | 6.00% | 6.50% |
Other | -0.10% | 0.30% | 0.10% |
Effective tax rate | 29.30% | 29.50% | 29.10% |
Income_Taxes_Schedule_of_Tempo
Income Taxes (Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Accrued postretirement and postemployment benefits | $264 | $279 |
Accrued pension costs | 135 | 262 |
Inventory | 170 | 135 |
Accrued liabilities | 139 | 150 |
Foreign exchange | 146 | 52 |
Other | 144 | 139 |
Total deferred income tax assets | 998 | 1,017 |
Deferred income tax liabilities: | ' | ' |
Trade names | -738 | -816 |
Property, plant and equipment | -311 | -320 |
Unremitted earnings | -735 | -845 |
Total deferred income tax liabilities | -1,784 | -1,981 |
Net deferred income tax liabilities | ($786) | ($964) |
Segment_Reporting_Narrative_De
Segment Reporting (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue, Net | $20,390 | $20,629 | $20,483 | $18,527 | $19,742 | $19,592 | $20,037 | $18,022 | $80,029 | [1] | $77,393 | [1] | $76,346 | [1] |
Long-lived assets | 7,393 | ' | ' | ' | 6,962 | ' | ' | ' | 7,393 | 6,962 | 6,537 | |||
Switzerland [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Long-lived assets | 1,100 | ' | ' | ' | 1,100 | ' | ' | ' | 1,100 | 1,100 | 1,000 | |||
Geographic Concentration Risk [Member] | Germany [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue, Net | ' | ' | ' | ' | ' | ' | ' | ' | $7,800 | $7,700 | $8,100 | |||
[1] | Total net revenues attributable to customers located in Germany, PMI’s largest market in terms of net revenues, were $7.8 billion, $7.7 billion and $8.1 billion for the years ended December 31, 2013, 2012 and 2011, respectively. |
Segment_Reporting_Segment_Data
Segment Reporting (Segment Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | $20,390 | $20,629 | $20,483 | $18,527 | $19,742 | $19,592 | $20,037 | $18,022 | $80,029 | [1] | $77,393 | [1] | $76,346 | [1] |
Amortization of intangibles | ' | ' | ' | ' | ' | ' | ' | ' | -93 | -97 | -98 | |||
General corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -187 | -210 | -183 | |||
Equity (income)/loss in unconsolidated subsidiaries, net | ' | ' | ' | ' | ' | ' | ' | ' | 22 | 17 | 10 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 13,515 | 13,863 | 13,342 | |||
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -973 | -859 | -800 | |||
Earnings before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 12,542 | 13,004 | 12,542 | |||
European Union [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 28,303 | 27,338 | 29,768 | |||
Operating companies income | ' | ' | ' | ' | ' | ' | ' | ' | 4,238 | 4,187 | 4,560 | |||
Eastern Europe, Middle East & Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 20,695 | 19,272 | 17,452 | |||
Operating companies income | ' | ' | ' | ' | ' | ' | ' | ' | 3,779 | 3,726 | 3,229 | |||
Asia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 20,987 | 21,071 | 19,590 | |||
Operating companies income | ' | ' | ' | ' | ' | ' | ' | ' | 4,622 | 5,197 | 4,836 | |||
Latin America & Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,044 | 9,712 | 9,536 | |||
Operating companies income | ' | ' | ' | ' | ' | ' | ' | ' | $1,134 | $1,043 | $988 | |||
[1] | Total net revenues attributable to customers located in Germany, PMI’s largest market in terms of net revenues, were $7.8 billion, $7.7 billion and $8.1 billion for the years ended December 31, 2013, 2012 and 2011, respectively. |
Segment_Reporting_Other_Expens
Segment Reporting (Other Expenses By Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | $789 | $801 | $895 |
Capital expenditures | 1,200 | 1,056 | 897 |
European Union [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 190 | 181 | 210 |
Capital expenditures | 480 | 391 | 382 |
Eastern Europe, Middle East & Africa [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 227 | 211 | 227 |
Capital expenditures | 247 | 197 | 133 |
Asia [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 277 | 315 | 358 |
Capital expenditures | 317 | 277 | 208 |
Latin America & Canada [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 85 | 84 | 90 |
Capital expenditures | 156 | 127 | 140 |
Total Reportable Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 779 | 791 | 885 |
Capital expenditures | 1,200 | 992 | 863 |
Corporate and Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation expense | 10 | 10 | 10 |
Capital expenditures | $0 | $64 | $34 |
Segment_Reporting_LongLived_As
Segment Reporting (Long-Lived Assets By Segment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | $7,393 | $6,962 | $6,537 |
European Union [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | 3,403 | 3,065 | 2,938 |
Eastern Europe, Middle East & Africa [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | 1,265 | 1,215 | 1,094 |
Asia [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | 1,758 | 1,824 | 1,681 |
Latin America & Canada [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | 759 | 719 | 678 |
Total Reportable Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | 7,185 | 6,823 | 6,391 |
Corporate and Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived assets | $208 | $139 | $146 |
Benefit_Plans_Narrative_Detail
Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | ($386) | ($1,734) | ' |
Estimated net loss to be amortized | 117 | ' | ' |
Estimated prior service cost to be amortized | 7 | ' | ' |
Amounts charged to expense for defined contribution plans | 69 | 66 | 61 |
Estimated contribution to pension plans | 171 | ' | ' |
Accrued postretirement health care costs - current | 11 | 11 | ' |
Estimated net loss to be amortized into net postemployment costs | 66 | ' | ' |
Annual weighted-average turnover rate | 2.20% | 2.10% | ' |
Percentage increase in assumed compensation cost | 3.80% | 3.90% | ' |
Assets related to postemployment cost | 33 | 28 | ' |
Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | 60.00% | ' | ' |
Debt Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | 40.00% | ' | ' |
U.S. Plans - Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Accumulated benefit obligation | 339 | 354 | ' |
Accumulated benefit obligations in excess of plan assets, projected obligation | 86 | 86 | ' |
Accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 77 | 78 | ' |
Weighted-average discount rate | 4.80% | 4.05% | ' |
Non-U.S. Plans - Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Accumulated benefit obligation | 6,257 | 6,469 | ' |
Accumulated benefit obligations in excess of plan assets, projected obligation | 1,429 | 6,786 | ' |
Accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 1,295 | 6,058 | ' |
Accumulated benefit obligations in excess of plan assets, fair value of plan assets | $1,034 | $5,162 | ' |
Weighted-average discount rate | 3.09% | 2.38% | ' |
Swiss Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan Percentage of Foreign Projected Benefit Obligation | 58.00% | 58.00% | ' |
Defined Benefit Plan Percentage of Foreign Plan Asset | 60.00% | 60.00% | ' |
Postemployment Benefit Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Weighted-average discount rate | 5.50% | 4.40% | ' |
Benefit_Plans_Obligations_and_
Benefit Plans (Obligations and Funded Status) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension [Member] | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets at December 31, | $6,871 | $5,911 |
U.S. Plans - Pension [Member] | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Net pension liability recognized at December 31, | -59 | -99 |
U.S. Plans - Pension [Member] | Defined Benefit Plan, Benefit Obligation [Member] | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' |
Benefit obligation at January 1, | 383 | 352 |
Service cost | 7 | 6 |
Interest cost | 16 | 16 |
Benefits paid | -13 | -16 |
Termination, settlement and curtailment | 0 | 0 |
Assumption changes | -45 | 28 |
Actuarial (gains) losses | 16 | -3 |
Currency | 0 | 0 |
Other | 0 | 0 |
Benefit obligation at December 31, | 364 | 383 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Benefits paid | -13 | -16 |
U.S. Plans - Pension [Member] | Defined Benefit Plan, Plan Assets [Member] | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' |
Benefits paid | -13 | -16 |
Termination, settlement and curtailment | 0 | 0 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets at January 1, | 284 | 269 |
Actual return on plan assets | 33 | 27 |
Employer contributions | 1 | 4 |
Employee contributions | 0 | 0 |
Benefits paid | -13 | -16 |
Currency | 0 | 0 |
Fair value of plan assets at December 31, | 305 | 284 |
Non-U.S. Plans - Pension [Member] | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Net pension liability recognized at December 31, | -327 | -1,635 |
Non-U.S. Plans - Pension [Member] | Defined Benefit Plan, Benefit Obligation [Member] | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' |
Benefit obligation at January 1, | 7,262 | 5,625 |
Service cost | 255 | 189 |
Interest cost | 169 | 189 |
Benefits paid | -156 | -160 |
Termination, settlement and curtailment | -3 | -8 |
Assumption changes | -894 | 1,176 |
Actuarial (gains) losses | 76 | 41 |
Currency | 141 | 167 |
Other | 43 | 43 |
Benefit obligation at December 31, | 6,893 | 7,262 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Benefits paid | -156 | -160 |
Non-U.S. Plans - Pension [Member] | Defined Benefit Plan, Plan Assets [Member] | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' |
Benefits paid | -156 | -160 |
Termination, settlement and curtailment | -2 | -5 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets at January 1, | 5,627 | 4,778 |
Actual return on plan assets | 731 | 625 |
Employer contributions | 149 | 203 |
Employee contributions | 47 | 47 |
Benefits paid | -156 | -160 |
Currency | 170 | 139 |
Fair value of plan assets at December 31, | $6,566 | $5,627 |
Benefit_Plans_Pension_Liabilit
Benefit Plans (Pension Liabilities Recognized in Consolidated Balance Sheet) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' | ' |
Other assets | $151 | $29 |
Accrued liabilities — employment costs | -55 | -22 |
Long-term employment costs | -482 | -1,741 |
Net pension liability | ($386) | ($1,734) |
Benefit_Plans_WeightedAverage_
Benefit Plans (Weighted-Average Assumptions to Determine Benefit Obligations) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plans - Pension [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.80% | 4.05% |
Rate of compensation increase | 3.00% | 3.50% |
Non-U.S. Plans - Pension [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 3.09% | 2.38% |
Rate of compensation increase | 2.34% | 2.61% |
Benefit_Plans_Components_of_Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) (Pension [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Plans - Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $7 | $6 | $5 |
Interest cost | 16 | 16 | 16 |
Expected return on plan assets | -16 | -15 | -15 |
Amortization: | ' | ' | ' |
Net losses | 11 | 9 | 5 |
Prior service cost | 1 | 1 | 1 |
Net transition obligation | 0 | 0 | 0 |
Termination, settlement and curtailment | 0 | 2 | 2 |
Net periodic pension cost | 19 | 19 | 14 |
Non-U.S. Plans - Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 255 | 189 | 178 |
Interest cost | 169 | 189 | 205 |
Expected return on plan assets | -347 | -320 | -323 |
Amortization: | ' | ' | ' |
Net losses | 205 | 120 | 58 |
Prior service cost | 9 | 9 | 8 |
Net transition obligation | 0 | 1 | 1 |
Termination, settlement and curtailment | 1 | 0 | 1 |
Net periodic pension cost | $292 | $188 | $128 |
Benefit_Plans_Net_Pension_Cost
Benefit Plans (Net Pension Cost Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
U.S. Plans - Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.05% | 4.50% | 5.40% |
Expected rate of return on plan assets | 5.70% | 5.70% | 6.25% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Non-U.S. Plans - Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 2.38% | 3.40% | 4.00% |
Expected rate of return on plan assets | 6.11% | 6.21% | 6.21% |
Rate of compensation increase | 2.61% | 2.66% | 2.90% |
Benefit_Plans_Fair_Value_of_Pe
Benefit Plans (Fair Value of Pension Plan Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | ' | 1,363 | ||
U S And International Equities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined Benefit Plan, Percentage of Investment in Securities | 61.00% | 60.00% | ||
U S And International Government Bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined Benefit Plan, Percentage of Investment in Securities | 24.00% | 24.00% | ||
Investment Funds Holding Corporate Bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined Benefit Plan, Percentage of Investment in Securities | 8.00% | 9.00% | ||
Real Estate And Other Money Markets [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined Benefit Plan, Percentage of Investment in Securities | 7.00% | 7.00% | ||
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 5,164 | 4,419 | [1] | |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 1,707 | 1,492 | [1] | |
Pension [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 6,871 | 5,911 | ||
Pension [Member] | Cash and Cash Equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 608 | 420 | ||
Pension [Member] | U.S. securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 119 | 106 | ||
Pension [Member] | International securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 1,280 | 1,129 | ||
Pension [Member] | Investment funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 4,508 | [2] | 3,805 | [1],[3] |
Pension [Member] | International government bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 317 | 411 | ||
Pension [Member] | Corporate bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 2 | 3 | ||
Pension [Member] | Other [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 37 | 37 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 5,164 | 4,419 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 608 | 420 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | U.S. securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 119 | 106 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | International securities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 1,280 | 1,129 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Investment funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 2,805 | [2] | 2,313 | [1],[3] |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | International government bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 313 | 411 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Corporate bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 2 | 3 | ||
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Other [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 37 | 37 | ||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 1,707 | 1,492 | ||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 1,703 | [2] | 1,492 | [1],[3] |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | International government bonds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Fair Value of Plan Assets | 4 | ' | ||
[1] | Mutual funds in the amount of $1,363 million were transferred from Level 2 to Level 1 because they are actively traded on a daily basis. | |||
[2] | Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 61% are invested in U.S. and international equities; 24% are invested in U.S. and international government bonds; 8% are invested in corporate bonds, and 7% are invested in real estate and other money markets. | |||
[3] | Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 60% are invested in U.S. and international equities; 24% are invested in U.S. and international government bonds; 9% are invested in corporate bonds, and 7% are invested in real estate and other money markets. |
Benefit_Plans_Estimated_Future
Benefit Plans (Estimated Future Benefit Payments From Pension Plans) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
U.S. Plans - Pension [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $48 |
2015 | 18 |
2016 | 18 |
2017 | 21 |
2018 | 19 |
2019-2023 | 119 |
Non-U.S. Plans - Pension [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 246 |
2015 | 255 |
2016 | 250 |
2017 | 260 |
2018 | 276 |
2019-2023 | $1,576 |
Benefit_Plans_Net_Postretireme
Benefit Plans (Net Postretirement Health Care Costs Recognized) (Details) (Post Retirement Health Care Plans [Member], Postretirement [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Plans - Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $3 | $2 | $2 |
Interest cost | 5 | 5 | 5 |
Amortization: | ' | ' | ' |
Net losses | 3 | 2 | 1 |
Net postretirement health care costs | 11 | 9 | 8 |
Non-U.S. Plans - Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 2 | 2 | 2 |
Interest cost | 5 | 5 | 5 |
Amortization: | ' | ' | ' |
Net losses | 2 | 1 | 1 |
Net postretirement health care costs | $9 | $8 | $8 |
Benefit_Plans_WeightedAverage_1
Benefit Plans (Weighted-Average Assumptions Used to Determine Postretirement Costs) (Details) (Postretirement [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
U.S. Plans - Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.05% | 4.50% | 5.40% |
Health care cost trend rate | 7.50% | 7.50% | 8.00% |
Non-U.S. Plans - Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.59% | 5.45% | 5.14% |
Health care cost trend rate | 6.46% | 6.55% | 6.29% |
Benefit_Plans_Changes_in_Accum
Benefit Plans (Changes in Accumulated Benefit Obligation of Postretirement Benefit Plans) (Details) (Postretirement [Member], Post Retirement Health Care Plans [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Plans - Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at January 1, | $132 | $115 | ' |
Service cost | 3 | 2 | 2 |
Interest cost | 5 | 5 | 5 |
Benefits paid | -5 | -4 | ' |
Assumption changes | -23 | 10 | ' |
Actuarial losses (gains) | 1 | 4 | ' |
Plan changes | 0 | 0 | ' |
Currency | 0 | 0 | ' |
Benefit obligation at December 31, | 113 | 132 | 115 |
Non-U.S. Plans - Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at January 1, | 113 | 96 | ' |
Service cost | 2 | 2 | 2 |
Interest cost | 5 | 5 | 5 |
Benefits paid | -5 | -5 | ' |
Assumption changes | -5 | 11 | ' |
Actuarial losses (gains) | -3 | 6 | ' |
Plan changes | -1 | -3 | ' |
Currency | -6 | 1 | ' |
Benefit obligation at December 31, | $100 | $113 | $96 |
Benefit_Plans_WeightedAverage_2
Benefit Plans (Weighted-Average Assumptions Used to Determine Postretirement Benefit Obligations) (Details) (Postretirement Benefit Obligations [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. Plans - Postretirement [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.95% | 4.05% |
Health care cost trend rate assumed for next year | 7.00% | 7.50% |
Ultimate trend rate | 5.00% | 5.00% |
Year that rate reaches the ultimate trend rate | '2018 | '2018 |
Non-U.S. Plans - Postretirement [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 5.07% | 4.59% |
Health care cost trend rate assumed for next year | 6.14% | 6.46% |
Ultimate trend rate | 4.87% | 4.88% |
Year that rate reaches the ultimate trend rate | '2029 | '2029 |
Benefit_Plans_Effect_of_Change
Benefit Plans (Effect of Change in One-Percentage-Points to Trend Rates) (Details) (Post Retirement Health Care Plans [Member], Postretirement Benefit Obligations [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Post Retirement Health Care Plans [Member] | Postretirement Benefit Obligations [Member] | ' |
Effect on total service and interest cost, One-Percentage-Point Increase | 18.20% |
Effect on postretirement benefit obligation, One-Percentage-Point Increase | 14.10% |
Effect on total service and interest cost, One-Percentage-Point Decrease | -14.00% |
Effect on postretirement benefit obligation, One-Percentage-Point Decrease | -11.60% |
Benefit_Plans_Estimated_Future1
Benefit Plans (Estimated Future Benefit Payments for Postretirement Health Plans) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
U.S. Plans - Postretirement [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2014 | $5 |
2015 | 5 |
2016 | 6 |
2017 | 6 |
2018 | 6 |
2019-2023 | 33 |
Non-U.S. Plans - Postretirement [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2014 | 6 |
2015 | 5 |
2016 | 5 |
2017 | 5 |
2018 | 5 |
2019-2023 | $26 |
Benefit_Plans_Net_Postemployme
Benefit Plans (Net Postemployment Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $34 | ' | ' |
Interest cost | 20 | 22 | ' |
Postemployment Benefit Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 34 | 30 | 28 |
Interest cost | 20 | 22 | 22 |
Amortization of net loss | 60 | 53 | 39 |
Other expense | 84 | 75 | 106 |
Net postemployment costs | $198 | $180 | $195 |
Benefit_Plans_Change_in_Benefi
Benefit Plans (Change in Benefit Obligations of Postemployment Benefit Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at January 1 | $682 | ' | ' |
Service cost | 34 | ' | ' |
Interest cost | 20 | 22 | ' |
Benefit obligation at December 31 | ' | 682 | ' |
Postemployment Benefit Plans [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at January 1 | 682 | 619 | ' |
Service cost | 34 | 30 | 28 |
Interest cost | 20 | 22 | 22 |
Benefits paid | -173 | -196 | ' |
Actuarial losses | 109 | 129 | ' |
Other | 91 | 78 | ' |
Benefit obligation at December 31 | $763 | $682 | $619 |
Benefit_Plans_Amounts_Recorded
Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Losses) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net losses | ($2,454) | ($3,893) | ($2,991) |
Prior service cost | -44 | -53 | -67 |
Net transition obligation | -6 | -7 | -8 |
Deferred income taxes | 458 | 588 | 481 |
Amounts to be amortized | -2,046 | -3,365 | -2,585 |
Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net losses | -1,746 | -3,199 | -2,401 |
Prior service cost | -51 | -60 | -70 |
Net transition obligation | -6 | -7 | -8 |
Deferred income taxes | 245 | 377 | 299 |
Amounts to be amortized | -1,558 | -2,889 | -2,180 |
Postretirement [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net losses | -47 | -82 | -54 |
Prior service cost | 7 | 7 | 3 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 14 | 26 | 19 |
Amounts to be amortized | -26 | -49 | -32 |
Postemployment Benefit Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net losses | -661 | -612 | -536 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 199 | 185 | 163 |
Amounts to be amortized | ($462) | ($427) | ($373) |
Benefit_Plans_Movements_in_Oth
Benefit Plans (Movements in Other Comprehensive Earnings (Losses)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortization: | ' | ' | ' |
Net losses | $281 | $185 | $105 |
Prior service cost | 10 | 10 | 8 |
Net transition obligation | 0 | 1 | 1 |
Other income/expense: | ' | ' | ' |
Net loss | 1 | 4 | 3 |
Deferred income taxes | -49 | -37 | -23 |
Amounts transferred to earnings as components of net periodic benefit cost | 243 | 163 | 94 |
Other movements during the year: | ' | ' | ' |
Net losses | 1,157 | -1,091 | -1,160 |
Prior service cost | -1 | 4 | -17 |
Net transition obligation | 1 | ' | ' |
Deferred income taxes | -81 | 144 | 148 |
Other movements during the year | 1,076 | -943 | -1,029 |
Total movements in other comprehensive losses | 1,319 | -780 | -935 |
Pension [Member] | ' | ' | ' |
Amortization: | ' | ' | ' |
Net losses | 216 | 129 | 63 |
Prior service cost | 10 | 10 | 9 |
Net transition obligation | 0 | 1 | 1 |
Other income/expense: | ' | ' | ' |
Net loss | 1 | 4 | 3 |
Deferred income taxes | -29 | -20 | -10 |
Amounts transferred to earnings as components of net periodic benefit cost | 198 | 124 | 66 |
Other movements during the year: | ' | ' | ' |
Net losses | 1,236 | -931 | -1,042 |
Prior service cost | -1 | 0 | -17 |
Net transition obligation | 1 | ' | ' |
Deferred income taxes | -103 | 98 | 110 |
Other movements during the year | 1,133 | -833 | -949 |
Total movements in other comprehensive losses | 1,331 | -709 | -883 |
Postretirement [Member] | ' | ' | ' |
Amortization: | ' | ' | ' |
Net losses | 5 | 3 | 3 |
Prior service cost | 0 | 0 | -1 |
Net transition obligation | 0 | 0 | 0 |
Other income/expense: | ' | ' | ' |
Net loss | 0 | 0 | 0 |
Deferred income taxes | -2 | -1 | -1 |
Amounts transferred to earnings as components of net periodic benefit cost | 3 | 2 | 1 |
Other movements during the year: | ' | ' | ' |
Net losses | 30 | -31 | -11 |
Prior service cost | 0 | 4 | 0 |
Net transition obligation | 0 | ' | ' |
Deferred income taxes | -10 | 8 | 5 |
Other movements during the year | 20 | -19 | -6 |
Total movements in other comprehensive losses | 23 | -17 | -5 |
Postemployment Benefit Plans [Member] | ' | ' | ' |
Amortization: | ' | ' | ' |
Net losses | 60 | 53 | 39 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | 0 |
Other income/expense: | ' | ' | ' |
Net loss | 0 | 0 | 0 |
Deferred income taxes | -18 | -16 | -12 |
Amounts transferred to earnings as components of net periodic benefit cost | 42 | 37 | 27 |
Other movements during the year: | ' | ' | ' |
Net losses | -109 | -129 | -107 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | ' | ' |
Deferred income taxes | 32 | 38 | 33 |
Other movements during the year | -77 | -91 | -74 |
Total movements in other comprehensive losses | ($35) | ($54) | ($47) |
Additional_Information_Schedul
Additional Information (Schedule of Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Additional Information [Abstract] | ' | ' | ' |
Research and development expense | $449 | $415 | $413 |
Advertising expense | 435 | 483 | 464 |
Interest expense | 1,104 | 1,007 | 934 |
Interest income | -131 | -148 | -134 |
Interest expense, net | 973 | 859 | 800 |
Rent expense | $334 | $318 | $308 |
Additional_Information_Minimum
Additional Information (Minimum Rental Commitments Under Non-Cancelable Operating Leases) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Additional Information [Abstract] | ' |
2014 | $218 |
2015 | 160 |
2016 | 124 |
2017 | 81 |
2018 | 52 |
Thereafter | 211 |
Total | $846 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Derivative [Line Items] | ' | ' | ' |
Other comprehensive income (loss), foreign currency transaction and translation gain (loss) arising during period, net of tax | ($1,876,000,000) | $15,000,000 | ($852,000,000) |
Foreign Exchange Contract [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Foreign exchange contracts, notional amounts | 16,800,000,000 | 13,700,000,000 | ' |
Hedge, forecasted transactions, in months | '12 months | ' | ' |
Derivative gains to be reclassified to earnings | 68,000,000 | ' | ' |
Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Foreign exchange contracts, notional amounts | 3,300,000,000 | 1,100,000,000 | ' |
Other comprehensive income (loss), foreign currency transaction and translation gain (loss) arising during period, net of tax | 285,000,000 | 95,000,000 | 37,000,000 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Foreign exchange contracts, notional amounts | 2,300,000,000 | 2,700,000,000 | ' |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Foreign exchange contracts, notional amounts | 11,200,000,000 | 9,900,000,000 | ' |
Gains/(losses) from foreign currency contracts not designated as hedging instruments | $99,000,000 | $102,000,000 | $34,000,000 |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Value of Foreign Exchange Contracts) (Details) (Foreign Exchange Contract [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Asset Derivatives, Fair Value | $153 | $160 |
Derivatives, Liability Derivatives, Fair Value | 116 | 55 |
Designated as Hedging Instrument [Member] | Other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Asset Derivatives, Fair Value | 111 | 146 |
Designated as Hedging Instrument [Member] | Other accrued liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Liability Derivatives, Fair Value | 44 | 8 |
Designated as Hedging Instrument [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Asset Derivatives, Fair Value | 0 | 0 |
Designated as Hedging Instrument [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Liability Derivatives, Fair Value | 46 | 0 |
Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Asset Derivatives, Fair Value | 42 | 14 |
Not Designated as Hedging Instrument [Member] | Other accrued liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Liability Derivatives, Fair Value | 12 | 47 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives, Liability Derivatives, Fair Value | $14 | $0 |
Financial_Instruments_Hedging_
Financial Instruments (Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | ' | ($235) | ($22) | $18 | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | ' | 206 | 99 | -5 | ' |
Foreign Exchange Contract [Member] | Net revenues [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 319 | 66 | -17 | ' |
Foreign Exchange Contract [Member] | Cost of sales [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 6 | 19 | 34 | ' |
Foreign Exchange Contract [Member] | Marketing, administration and research costs [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 1 | 0 | 0 | ' |
Foreign Exchange Contract [Member] | Operating income [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 326 | 85 | 17 | ' |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | -53 | -46 | 19 | ' |
Foreign Exchange Contract [Member] | Earnings before income taxes [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 273 | 39 | 36 | ' |
Foreign Exchange Contract [Member] | Provision for Income Taxes [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | -32 | -2 | -11 | ' |
Foreign Exchange Contract [Member] | Net Earnings Attributable to Parent [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 241 | 37 | 25 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Net revenues [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 319 | 66 | -17 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of sales [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 6 | 19 | 34 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Marketing, administration and research costs [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 0 | 0 | 0 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Operating income [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 325 | 85 | 17 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Interest expense, net [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | -56 | -60 | -37 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Earnings before income taxes [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 269 | 25 | -20 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Provision for Income Taxes [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | -34 | -3 | 2 | ' |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Net Earnings Attributable to Parent [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 235 | 22 | -18 | ' |
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Interest expense, net [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | ' | 0 | 0 | 0 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 4 | 14 | 56 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Net revenues [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 0 | 0 | 0 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of sales [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 0 | 0 | 0 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Marketing, administration and research costs [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | 0 | 1 | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Operating income [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 1 | 0 | 0 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Interest expense, net [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 3 | 14 | 56 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Earnings before income taxes [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 4 | 14 | 56 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Provision for Income Taxes [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 2 | 1 | -13 | ' |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Net Earnings Attributable to Parent [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 6 | 15 | 43 | ' |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | ' | -235 | -22 | 18 | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | ' | 206 | 99 | -5 | ' |
Net impact on equity | ' | -29 | 77 | 13 | ' |
Cumulative translation adjustment | ' | -52 | -14 | 2 | ' |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Income Tax Expense Benefit [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | ' | 34 | 3 | -2 | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | ' | -30 | -14 | -1 | ' |
Net impact on equity | ' | 4 | -11 | -3 | ' |
Cumulative translation adjustment | ' | 27 | 5 | 0 | ' |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | ' | -269 | -25 | 20 | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | ' | 236 | 113 | -4 | ' |
Net impact on equity | ' | -33 | 88 | 16 | ' |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Cumulative translation adjustment | ' | ($79) | ($19) | $2 | ' |
Financial_Instruments_PreTax_E
Financial Instruments (Pre-Tax Effect of Foreign Exchange Contracts Designated as Cash Flow Hedging Instruments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | $206 | $99 | ($5) |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | 206 | 99 | -5 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | 236 | 113 | -4 |
Foreign Exchange Contract [Member] | Net revenues [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | 319 | 66 | -17 |
Foreign Exchange Contract [Member] | Net revenues [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | 319 | 66 | -17 |
Foreign Exchange Contract [Member] | Cost of sales [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | 6 | 19 | 34 |
Foreign Exchange Contract [Member] | Cost of sales [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | 6 | 19 | 34 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | -53 | -46 | 19 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | -56 | -60 | -37 |
Foreign Exchange Contract [Member] | Earnings before income taxes [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | 273 | 39 | 36 |
Foreign Exchange Contract [Member] | Earnings before income taxes [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings into Earnings | $269 | $25 | ($20) |
Financial_Instruments_PreTax_E1
Financial Instruments (Pre-Tax Effect of Foreign Exchange Contracts Designated as Net Investment Hedging Instruments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | ($235) | ($22) | $18 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Translation adjustment for cash flow and net investment hedge increase/decrease | -52 | -14 | 2 |
Derivative (gains)/losses transferred to earnings | -235 | -22 | 18 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Translation adjustment for cash flow and net investment hedge increase/decrease | -79 | -19 | 2 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | Net Investment Hedging [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative (gains)/losses transferred to earnings | $0 | $0 | $0 |
Financial_Instruments_PreTax_E2
Financial Instruments (Pre-Tax Effect of Foreign Exchange Contracts Designated as Other Derivatives) (Details) (Foreign Exchange Contract [Member], USD $) | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | $4 | $14 | $56 | ' |
Marketing, administration and research costs [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | 1 | 0 | 0 | ' |
Marketing, administration and research costs [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | 0 | 1 | 0 | 0 | 0 |
Interest expense, net [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | -53 | -46 | 19 | ' |
Interest expense, net [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in earnings | ' | $3 | $14 | $56 | ' |
Financial_Instruments_Hedging_1
Financial Instruments (Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses) Net of Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Gain at beginning of period | $92 | $15 | ' |
Derivative (gains)/losses transferred to earnings | -235 | -22 | 18 |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | 206 | 99 | -5 |
(Loss)/gain at end of period | 63 | 92 | 15 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Gain at beginning of period | 92 | 15 | 2 |
Derivative (gains)/losses transferred to earnings | -235 | -22 | 18 |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings on Derivative | 206 | 99 | -5 |
(Loss)/gain at end of period | $63 | $92 | $15 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | ' | $1,363 |
Capital lease obligations, carrying value | 17 | 37 |
Debt excluding short-term borrowings and capital lease obligations, carrying value | $25,261 | $20,383 |
Fair_Value_Measurements_Aggreg
Fair Value Measurements (Aggregate Fair Value of Derivative Financial Instruments And Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Foreign exchange contracts, Assets | $153 | $160 | |
Pension plan assets | 6,871 | 5,911 | [1] |
Assets, Fair Value Disclosure | 7,024 | 6,071 | |
Debt | 26,141 | 22,719 | |
Foreign exchange contracts, Liabilities | 116 | 55 | |
Liabilities, Fair Value Disclosure | 26,257 | 22,774 | |
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Foreign exchange contracts, Assets | 0 | 0 | |
Pension plan assets | 5,164 | 4,419 | [1] |
Assets, Fair Value Disclosure | 5,164 | 4,419 | |
Debt | 25,961 | 22,316 | |
Liabilities, Fair Value Disclosure | 25,961 | 22,316 | |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Foreign exchange contracts, Assets | 153 | 160 | |
Pension plan assets | 1,707 | 1,492 | [1] |
Assets, Fair Value Disclosure | 1,860 | 1,652 | |
Debt | 180 | 403 | |
Foreign exchange contracts, Liabilities | 116 | 55 | |
Liabilities, Fair Value Disclosure | 296 | 458 | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Assets, Fair Value Disclosure | 0 | 0 | |
Liabilities, Fair Value Disclosure | $0 | $0 | |
[1] | Mutual funds in the amount of $1,363 million were transferred from Level 2 to Level 1 because they are actively traded on a daily basis. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Losses, Net Of Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Currency translation adjustments | ($2,207) | ($331) | ($293) |
Pension and other benefits | -2,046 | -3,365 | -2,585 |
Derivatives accounted for as hedges | 63 | 92 | 15 |
Total accumulated other comprehensive losses | -4,190 | -3,604 | -2,863 |
(Gains)/ losses transferred to earnings, net of income taxes of $- in 2013 | $12 | $0 | $0 |
Colombian_Investment_and_Coope1
Colombian Investment and Cooperation Agreement (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 19, 2009 | Jun. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2012 |
Colombian Investment and Cooperation Agreement [Abstract] | ' | ' | ' | ' |
Investment and Cooperation Agreement funding, Colombian Governments | $200 | ' | ' | ' |
Investment and Cooperation Agreement funding period, Colombian Governments (in years) | '20 years | ' | ' | ' |
Investment and Cooperation Agreement, pre-tax charge | ' | 135 | ' | ' |
Discounted liabilities associated with the Columbian Investment and Corporation Agreement | ' | ' | $74 | $77 |
Investment and Cooperation Agreement, termination date | '2028 | ' | ' | ' |
RBH_Legal_Settlement_Details
RBH Legal Settlement (Details) | 0 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 31, 2008 | Jul. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2008 | Jul. 31, 2008 |
RBH Legal Settlement [Member] | RBH Legal Settlement [Member] | RBH Legal Settlement [Member] | RBH Legal Settlement [Member] | Rothmans [Member] | Principal Owner [Member] | |
USD ($) | CAD | USD ($) | USD ($) | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Legal settlement incurred | $540 | 550 | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | 60.00% | 40.00% |
Discounted accrued settlement charges | ' | ' | $152 | $190 | ' | ' |
Payment termination date | '2019 | '2019 | ' | ' | ' | ' |
EC_Agreement_Details
E.C. Agreement (Details) (Agreement With European Commission [Member], USD $) | 1 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Jul. 31, 2009 | Jul. 31, 2008 | Jul. 31, 2007 | Jul. 31, 2006 | Jul. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2004 |
payment | |||||||||||||
cigarette | |||||||||||||
Agreement With European Commission [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 |
Tenure of payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 years |
Initial payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250 |
Additional payments on the first anniversary of the agreement | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' |
Additional payments on the second anniversary of the agreement | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' |
Additional payments on the third anniversary of the agreement | ' | ' | ' | ' | ' | 75 | 75 | ' | ' | ' | ' | ' | ' |
Additional payments on the fourth anniversary of the agreement | ' | ' | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payments on the fifth anniversary of the agreement | ' | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payments on the sixth anniversary of the agreement | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payments on the seventh anniversary of the agreement | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payments on the eighth anniversary of the agreement | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future annual installment, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' |
Future annual installment, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' |
Future annual installment, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' |
Future annual installment, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' |
Additional payment term, years | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Maximum qualifying product seizures size (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 |
Excise taxes VAT customs duties multiplier above maximum product seizures (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500.00% |
Total charges related to E.C. Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | $81 | $78 | $86 | ' |
Contingencies_TobaccoRelated_L
Contingencies (Tobacco-Related Litigation) (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Final Resolution In Favor Of Company [Member] | Case Decided In Favor Of Plaintiff [Member] | Case Decided In Favor Of Plaintiff [Member] | Case Decided In Favor Of Plaintiff [Member] | Individual Lights Cases Small Claims Court [Member] | Individual Lights Cases Small Claims Court [Member] | |
litigation_case | litigation_case | Cases Remaining On Appeal [Member] | Final Resolution In Favor Of Company [Member] | Italy [Member] | Italy [Member] | |
litigation_case | litigation_case | Cases With Costs [Member] | Cases With Costs [Member] | |||
USD ($) | EUR (€) | |||||
litigation_case | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Payments For Resolution Of Litigation | ' | ' | ' | ' | $1,900 | € 1,400 |
Number of cases decided | 416 | ' | ' | 8 | ' | ' |
Number of cases decided | ' | 10 | ' | ' | ' | ' |
Cases brought against PM | ' | ' | 2 | ' | 1 | 1 |
Contingencies_Number_of_Tobacc
Contingencies (Number of Tobacco-Related Cases Pending Against us and/or Our Subsidiaries or Indemnitees) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
litigation_case | litigation_case | litigation_case | |
Individual Smoking And Health Cases [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 62 | 76 | 75 |
Smoking And Health Class Actions [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 11 | 11 | 10 |
Health Care Cost Recovery Actions [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 15 | 15 | 11 |
Lights Class Actions [Member] | Israel [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | 2 | 2 |
Public Civil Actions [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 3 | 4 | 3 |
Contingencies_Verdicts_and_Pos
Contingencies (Verdicts and Post-Trial Developments) (Details) (Cases With Verdicts And Post Trial Developments [Member], Brazil [Member]) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | |
Bernhardt [Member] | Bernhardt [Member] | The Smoker Health Defense Association (ADESF) [Member] | The Smoker Health Defense Association (ADESF) [Member] | |
USD ($) | BRL | USD ($) | BRL | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Date Of Verdict | 'September 2009 | 'September 2009 | 'February 2004 | 'February 2004 |
Verdict | 'The Civil Court of Rio de Janeiro found for plaintiff and ordered Philip Morris Brasil to pay R$13,000 (approximately $5,500) in “moral damages.†| 'The Civil Court of Rio de Janeiro found for plaintiff and ordered Philip Morris Brasil to pay R$13,000 (approximately $5,500) in “moral damages.†| 'The Civil Court of São Paulo found defendants liable without hearing evidence. The court did not assess moral or actual damages, which were to be assessed in a second phase of the case. The size of the class was not defined in the ruling. | 'The Civil Court of São Paulo found defendants liable without hearing evidence. The court did not assess moral or actual damages, which were to be assessed in a second phase of the case. The size of the class was not defined in the ruling. |
Post-Trial Developments | 'Philip Morris Brasil filed its appeal against the decision on the merits with the Court of Appeals in November 2009. In February 2010, without addressing the merits, the Court of Appeals annulled the trial court's decision and remanded the case to the trial court to issue a new ruling, which was required to address certain compensatory damage claims made by the plaintiff that the trial court did not address in its original ruling. In July 2010, the trial court reinstated its original decision, while specifically rejecting the compensatory damages claim. Philip Morris Brasil appealed this decision. In March 2011, the Court of Appeals affirmed the trial court's decision and denied Philip Morris Brasil's appeal. The Court of Appeals increased the amount of damages awarded to the plaintiff to R$100,000 (approximately $42,300). Philip Morris Brasil has appealed this decision. | 'Philip Morris Brasil filed its appeal against the decision on the merits with the Court of Appeals in November 2009. In February 2010, without addressing the merits, the Court of Appeals annulled the trial court's decision and remanded the case to the trial court to issue a new ruling, which was required to address certain compensatory damage claims made by the plaintiff that the trial court did not address in its original ruling. In July 2010, the trial court reinstated its original decision, while specifically rejecting the compensatory damages claim. Philip Morris Brasil appealed this decision. In March 2011, the Court of Appeals affirmed the trial court's decision and denied Philip Morris Brasil's appeal. The Court of Appeals increased the amount of damages awarded to the plaintiff to R$100,000 (approximately $42,300). Philip Morris Brasil has appealed this decision. | 'In April 2004, the court clarified its ruling, awarding “moral damages†of R$1,000 (approximately $420) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not award actual damages, which were to be assessed in the second phase of the case. The size of the class was not estimated. Defendants appealed to the São Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. Plaintiff has appealed. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that the plaintiff did not have standing to bring the lawsuit. This appeal is still pending. | 'In April 2004, the court clarified its ruling, awarding “moral damages†of R$1,000 (approximately $420) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not award actual damages, which were to be assessed in the second phase of the case. The size of the class was not estimated. Defendants appealed to the São Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. Plaintiff has appealed. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that the plaintiff did not have standing to bring the lawsuit. This appeal is still pending. |
Loss Contingency, Damages Awarded, Value | $5,500 | 13,000 | $420 | 1,000 |
Verdict, increased award to plaintiffs | $42,300 | 100,000 | ' | ' |
Interest rate on damages, monthly | ' | ' | 1.00% | 1.00% |
Contingencies_Smoking_and_Heal
Contingencies (Smoking and Health Litigation) (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
litigation_case | litigation_case | litigation_case | |
Individual Smoking And Health Cases [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 62 | 76 | 75 |
Individual Smoking And Health Cases [Member] | Argentina [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 24 | ' | ' |
Individual Smoking And Health Cases [Member] | Brazil [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 24 | ' | ' |
Individual Smoking And Health Cases [Member] | Canada [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 2 | ' | ' |
Individual Smoking And Health Cases [Member] | Chile [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 4 | ' | ' |
Individual Smoking And Health Cases [Member] | Costa Rica [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 2 | ' | ' |
Individual Smoking And Health Cases [Member] | Greece [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Individual Smoking And Health Cases [Member] | Italy [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 3 | ' | ' |
Individual Smoking And Health Cases [Member] | The Philippines [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Individual Smoking And Health Cases [Member] | Scotland [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Smoking And Health Class Actions [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 11 | 11 | 10 |
Smoking And Health Class Actions [Member] | Brazil [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 2 | ' | ' |
Smoking And Health Class Actions [Member] | Canada [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 9 | ' | ' |
Contingencies_Health_Care_Cost
Contingencies (Health Care Cost Recovery Litigation) (Narrative) (Details) (Health Care Cost Recovery Actions [Member]) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
litigation_case | litigation_case | litigation_case | |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 15 | 15 | 11 |
Canada [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 9 | ' | ' |
Nigeria [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 5 | ' | ' |
Spain [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Contingencies_Lights_Cases_Nar
Contingencies (Lights Cases) (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
litigation_case | litigation_case | litigation_case | |
Israel [Member] | Lights Class Actions [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | 2 | 2 |
Chile And Italy [Member] | Individual Lights Cases [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 2 | ' | ' |
Italy [Member] | Individual Lights Cases [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | 7 | 9 |
Chile [Member] | Individual Lights Cases [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Contingencies_Public_Civil_Act
Contingencies (Public Civil Actions) (Narrative) (Details) (Public Civil Actions [Member]) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
litigation_case | litigation_case | litigation_case | |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 3 | 4 | 3 |
Argentina [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Brazil [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Venezuela [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Cases brought against PM | 1 | ' | ' |
Balance_Sheet_Offsetting_Detai
Balance Sheet Offsetting (Details) (Foreign Exchange Contract [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contract [Member] | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Derivatives, Asset Derivatives, Fair Value | $153 | $160 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset | 153 | 160 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Financial Instruments, Assets | -52 | -24 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Cash Collateral, Assets | -79 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 22 | 136 |
Derivatives, Liability Derivatives, Fair Value | 116 | 55 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability | 116 | 55 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Financial Instruments, Liabilities | -52 | -24 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Cash Collateral, Liabilities | -47 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $17 | $31 |
Redeemable_Noncontrolling_Inte2
Redeemable Noncontrolling Interest - Rollforward (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' |
Balance, beginning of year | $1,301 | $1,212 | $1,188 |
Share of net earnings | 99 | 171 | 97 |
Termination of rights agreement | -1,275 | ' | ' |
Balance, end of year | 0 | 1,301 | 1,212 |
Redeemable Noncontrolling Interest [Member] | ' | ' | ' |
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' |
Dividend payments | -94 | -105 | -73 |
Currency translation | -33 | 25 | 0 |
Net loss and prior service cost | $2 | ($2) | ' |
Redeemable_Noncontrolling_Inte3
Redeemable Noncontrolling Interest - Narrative (Details) (Fortune Tobacco Corporation [Member], USD $) | Feb. 25, 2010 |
In Billions, unless otherwise specified | |
Redeemable Noncontrolling Interest [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $1.17 |
Agreed Upon Value to Sell Between February 2015 And February 2018 [Member] | ' |
Redeemable Noncontrolling Interest [Line Items] | ' |
Temporary Equity, Redemption Value | $1.17 |
Quarterly_Financial_Data_Sched
Quarterly Financial Data (Schedule of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net revenues | $20,390 | $20,629 | $20,483 | $18,527 | $19,742 | $19,592 | $20,037 | $18,022 | $80,029 | [1] | $77,393 | [1] | $76,346 | [1] |
Gross profit | 5,187 | 5,309 | 5,216 | 5,095 | 5,208 | 5,336 | 5,454 | 5,006 | 20,807 | 21,004 | 20,419 | |||
Net earnings attributable to PMI | $1,987 | $2,340 | $2,124 | $2,125 | $2,095 | $2,227 | $2,317 | $2,161 | $8,576 | $8,800 | $8,591 | |||
Per share data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic EPS (in dollars per share) | $1.24 | $1.44 | $1.30 | $1.28 | $1.25 | $1.32 | $1.36 | $1.25 | $5.26 | $5.17 | $4.85 | |||
Diluted EPS (in dollars per share) | $1.24 | $1.44 | $1.30 | $1.28 | $1.25 | $1.32 | $1.36 | $1.25 | $5.26 | $5.17 | $4.85 | |||
Dividends declared (in dollars per share) | $0.94 | $0.94 | $0.85 | $0.85 | $0.85 | $0.85 | $0.77 | $0.77 | $3.58 | $3.24 | $2.82 | |||
Market price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
High (in dollars per share) | $91.81 | $91.40 | $96.73 | $93.61 | $94.13 | $93.60 | $91.05 | $88.86 | ' | ' | ' | |||
Low (in dollars per share) | $83.81 | $82.86 | $86.05 | $84.33 | $82.10 | $86.11 | $81.10 | $72.85 | ' | ' | ' | |||
[1] | Total net revenues attributable to customers located in Germany, PMI’s largest market in terms of net revenues, were $7.8 billion, $7.7 billion and $8.1 billion for the years ended December 31, 2013, 2012 and 2011, respectively. |
Quarterly_Financial_Data_PreTa
Quarterly Financial Data (Pre-Tax Charges Recorded In Earnings) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment and exit costs (Note 5) | $301 | $0 | $5 | $3 | $33 | $34 | $8 | $8 | $309 | $83 | $109 |