Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 29, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
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 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 1,562,131,077 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,541 | $2,154 |
Receivables (less allowances of $51 in 2014 and $53 in 2013) | 4,081 | 3,853 |
Inventories: | ' | ' |
Leaf tobacco | 3,582 | 3,709 |
Other raw materials | 1,595 | 1,596 |
Finished product | 3,094 | 4,541 |
Total inventory, net | 8,271 | 9,846 |
Deferred income taxes | 414 | 502 |
Other current assets | 403 | 497 |
Total current assets | 14,710 | 16,852 |
Property, plant and equipment, at cost | 14,071 | 13,957 |
Less: accumulated depreciation | 7,423 | 7,202 |
Total property, plant and equipment, net | 6,648 | 6,755 |
Goodwill (Note 5) | 9,085 | 8,893 |
Other intangible assets, net (Note 5) | 3,209 | 3,193 |
Investments in unconsolidated subsidiaries (Note 16) | 1,508 | 1,536 |
Other assets | 1,165 | 939 |
TOTAL ASSETS | 36,325 | 38,168 |
LIABILITIES | ' | ' |
Short-term borrowings (Note 12) | 1,941 | 2,400 |
Current portion of long-term debt (Note 12) | 407 | 1,255 |
Accounts payable | 1,109 | 1,274 |
Accrued liabilities: | ' | ' |
Marketing and selling | 629 | 503 |
Taxes, except income taxes | 5,008 | 6,492 |
Employment costs | 1,267 | 949 |
Dividends payable | 1,482 | 1,507 |
Other | 1,099 | 1,382 |
Income taxes | 536 | 1,192 |
Deferred income taxes | 102 | 112 |
Total current liabilities | 13,580 | 17,066 |
Long-term debt (Note 12) | 27,161 | 24,023 |
Deferred income taxes | 1,520 | 1,477 |
Employment costs | 1,312 | 1,313 |
Other liabilities | 599 | 563 |
Total liabilities | 44,172 | 44,442 |
Contingencies (Note 10) | ' | ' |
STOCKHOLDERS’ (DEFICIT) EQUITY | ' | ' |
Common stock, no par value (2,109,316,331 shares issued in 2014 and 2013) | 0 | 0 |
Additional paid-in capital | 649 | 723 |
Earnings reinvested in the business | 28,601 | 27,843 |
Accumulated other comprehensive losses | -4,314 | -4,190 |
Total stockholders' equity before treasury stock | 24,936 | 24,376 |
Less: cost of repurchased stock (544,554,521 and 520,313,919 shares in 2014 and 2013, respectively) | 34,228 | 32,142 |
Total PMI stockholders’ deficit | -9,292 | -7,766 |
Noncontrolling interests | 1,445 | 1,492 |
Total stockholders’ deficit | -7,847 | -6,274 |
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $36,325 | $38,168 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Receivables, allowances | $51 | $53 |
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares issued | 2,109,316,331 | 2,109,316,331 |
Repurchased stock, shares | 544,554,521 | 520,313,919 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenues | $21,051 | $20,483 | $38,830 | $39,010 |
Cost of sales | 2,696 | 2,701 | 5,070 | 5,190 |
Excise taxes on products | 13,254 | 12,566 | 24,116 | 23,509 |
Gross profit | 5,101 | 5,216 | 9,644 | 10,311 |
Marketing, administration and research costs | 1,716 | 1,850 | 3,263 | 3,527 |
Asset impairment and exit costs (Note 2) | 489 | 5 | 512 | 8 |
Amortization of intangibles | 22 | 24 | 44 | 48 |
Operating income | 2,874 | 3,337 | 5,825 | 6,728 |
Interest expense, net | 254 | 246 | 522 | 482 |
Earnings before income taxes | 2,620 | 3,091 | 5,303 | 6,246 |
Provision for income taxes | 752 | 892 | 1,528 | 1,825 |
Equity (income)/loss in unconsolidated subsidiaries, net | -27 | 5 | -36 | 9 |
Net earnings | 1,895 | 2,194 | 3,811 | 4,412 |
Net earnings attributable to noncontrolling interests | 44 | 70 | 85 | 163 |
Net earnings attributable to PMI | $1,851 | $2,124 | $3,726 | $4,249 |
Per share data (Note 8): | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $1.17 | $1.30 | $2.35 | $2.58 |
Diluted earnings per share (in dollars per share) | $1.17 | $1.30 | $2.35 | $2.58 |
Dividends declared (in dollars per share) | $0.94 | $0.85 | $1.88 | $1.70 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $1,895 | $2,194 | $3,811 | $4,412 |
Change in currency translation adjustment: | ' | ' | ' | ' |
Unrealized losses, net of income taxes of ($59) and $24 for the six months ended June 30, 2014 and 2013, and ($55) and $52 for the three months ended June 30, 2014 and 2013 | -77 | -488 | -114 | -722 |
Change in net loss and prior service cost: | ' | ' | ' | ' |
Net losses and prior service costs, net of income taxes of $3 and $- for the six months ended June 30, 2014 and 2013, and $3 and $- for the three months ended June 30, 2014 and 2013 | -41 | 0 | -41 | 0 |
Amortization of net losses, prior service costs and net transition costs, net of income taxes of ($26) and ($27) for the six months ended June 30, 2014 and 2013, and ($14) and ($13) for the three months ended June 30, 2014 and 2013 | 43 | 59 | 81 | 118 |
Change in fair value of derivatives accounted for as hedges: | ' | ' | ' | ' |
Gains transferred to earnings, net of income taxes of $2 and $14 for the six months ended June 30, 2014 and 2013, and $1 and $10 for the three months ended June 30, 2014 and 2013 | -6 | -64 | -13 | -95 |
(Losses) gains recognized, net of income taxes of $5 and ($23) for the six months ended June 30, 2014 and 2013, and $2 and ($10) for the three months ended June 30, 2014 and 2013 | -11 | 60 | -35 | 156 |
Total other comprehensive losses | -92 | -433 | -122 | -543 |
Total comprehensive earnings | 1,803 | 1,761 | 3,689 | 3,869 |
Less comprehensive earnings attributable to: | ' | ' | ' | ' |
Noncontrolling interests | 53 | 35 | 87 | 88 |
Redeemable noncontrolling interest (Note 7) | 0 | -3 | 0 | 43 |
Comprehensive earnings attributable to PMI | $1,750 | $1,729 | $3,602 | $3,738 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Income taxes on Currency translation adjustments | ($55) | $52 | ($59) | $24 |
Income taxes on Net Losses and Prior Service Costs | 3 | 0 | 3 | 0 |
Income taxes on Amortization of net losses, prior service costs and net transition costs | -14 | -13 | -26 | -27 |
Income taxes on Loss/(gain) transferred to earnings from FV of Hedge Derivatives | 1 | 10 | 2 | 14 |
Income taxes on (loss)/gain recognized from FV of Hedge Derivatives | $2 | ($10) | $5 | ($23) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) (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, 2012 | ($3,154) | $0 | $1,334 | $25,076 | ($3,604) | ($26,282) | $322 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ||
Net earnings | 4,345 | [1] | ' | ' | 4,249 | ' | ' | 96 | [1] |
Other comprehensive earnings (losses), net of income taxes | -519 | [1] | ' | ' | ' | -511 | ' | -8 | [1] |
Issuance of stock awards and exercise of stock options | 106 | ' | -28 | ' | ' | 134 | ' | ||
Dividends declared | -2,788 | ' | ' | -2,788 | ' | ' | ' | ||
Payments to noncontrolling interests | -169 | ' | ' | ' | ' | ' | -169 | ||
Common stock repurchased | -3,046 | ' | ' | ' | ' | -3,046 | ' | ||
Ending balance at Jun. 30, 2013 | -5,225 | 0 | 1,306 | 26,537 | -4,115 | -29,194 | 241 | ||
Beginning balance at Dec. 31, 2013 | -6,274 | 0 | 723 | 27,843 | -4,190 | -32,142 | 1,492 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ||
Net earnings | 3,811 | ' | ' | 3,726 | ' | ' | 85 | ||
Other comprehensive earnings (losses), net of income taxes | -122 | ' | ' | ' | -124 | ' | 2 | ||
Issuance of stock awards and exercise of stock options | 90 | ' | -74 | ' | ' | 164 | ' | ||
Dividends declared | -2,968 | ' | ' | -2,968 | ' | ' | ' | ||
Payments to noncontrolling interests | -134 | ' | ' | ' | ' | ' | -134 | ||
Common stock repurchased | -2,250 | ' | ' | ' | ' | -2,250 | ' | ||
Ending balance at Jun. 30, 2014 | ($7,847) | $0 | $649 | $28,601 | ($4,314) | ($34,228) | $1,445 | ||
[1] | For the six months ended June 30, 2013, net earnings attributable to noncontrolling interests exclude $67 million of earnings related to the redeemable noncontrolling interest, which were originally reported outside of the equity section in the condensed consolidated balance sheet at June 30, 2013. Other comprehensive earnings, net of income taxes, also exclude $24 million of net currency translation adjustment losses related to the redeemable noncontrolling interest at June 30, 2013. In December 2013, the redeemable noncontrolling interest balance of $1,275 million was reclassified to noncontrolling interests due to the termination of an exit rights agreement. See Note 7. Redeemable Noncontrolling Interests for further details. |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) (Parenthetical) (USD $) | 1 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Transfer of redeemable noncontrolling interest | $1,275 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ' | ' |
Net earnings | $3,811 | $4,412 |
Adjustments to reconcile net earnings to operating cash flows: | ' | ' |
Depreciation and amortization | 427 | 441 |
Deferred income tax provision | 81 | 69 |
Asset impairment and exit costs, net of cash paid | 282 | -4 |
Cash effects of changes, net of the effects from acquired companies: | ' | ' |
Receivables, net | -245 | -534 |
Inventories | 1,484 | 472 |
Accounts payable | 2 | 61 |
Income taxes | -675 | -800 |
Accrued liabilities and other current assets | -1,666 | 154 |
Pension plan contributions | -82 | -56 |
Other | 1 | 285 |
Net cash provided by operating activities | 3,420 | 4,500 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -508 | -520 |
Purchase of businesses, net of acquired cash | -103 | 0 |
Investments in unconsolidated subsidiaries | -16 | -3 |
Other | 83 | 32 |
Net cash used in investing activities | -544 | -491 |
Short-term borrowing activity by original maturity: | ' | ' |
Net repayments - maturities of 90 days or less | -255 | -101 |
Issuances - maturities longer than 90 days | 921 | 535 |
Repayments - maturities longer than 90 days | -1,094 | -139 |
Long-term debt proceeds | 3,632 | 5,205 |
Long-term debt repaid | -1,240 | -2,738 |
Repurchases of common stock | -2,281 | -3,028 |
Issuance of common stock | 1 | 0 |
Dividends paid | -2,993 | -2,815 |
Other | -178 | -218 |
Net cash used in financing activities | -3,487 | -3,299 |
Effect of exchange rate changes on cash and cash equivalents | -2 | -107 |
Cash and cash equivalents: | ' | ' |
(Decrease) Increase | -613 | 603 |
Balance at beginning of period | 2,154 | 2,983 |
Balance at end of period | $1,541 | $3,586 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
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 interim condensed consolidated financial statements of PMI are unaudited. These interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles and such principles are applied on a consistent basis. It is the opinion of PMI’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected therein. All such adjustments were of a normal recurring nature. Net revenues and net earnings attributable to PMI for any interim period are not necessarily indicative of results that may be expected for the entire year. | |
Certain prior years' amounts have been reclassified to conform to the current year's presentation, due to the separate disclosure of investments in unconsolidated subsidiaries. For further details, see Note 16. Investments in Unconsolidated Subsidiaries. | |
These statements should be read in conjunction with the audited consolidated financial statements and related notes, which appear in PMI’s Annual Report to Shareholders and which are incorporated by reference into PMI’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Asset_Impairment_and_Exit_Cost
Asset Impairment and Exit Costs | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Asset Impairment and Exit Costs | ' | |||||||||||||||
Asset Impairment and Exit Costs: | ||||||||||||||||
Pre-tax asset impairment and exit costs consisted of the following: | ||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Separation programs: | ||||||||||||||||
European Union | $ | 359 | $ | — | $ | 359 | $ | — | ||||||||
Asia | 24 | — | 1 | — | ||||||||||||
Total separation programs | 383 | — | 360 | — | ||||||||||||
Contract termination charges: | ||||||||||||||||
Asia | — | 8 | — | 5 | ||||||||||||
Total contract termination charges | — | 8 | — | 5 | ||||||||||||
Asset impairment charges: | ||||||||||||||||
European Union | 129 | — | 129 | — | ||||||||||||
Total asset impairment charges | 129 | — | 129 | — | ||||||||||||
Asset impairment and exit costs | $ | 512 | $ | 8 | $ | 489 | $ | 5 | ||||||||
Movement in Exit Cost Liabilities | ||||||||||||||||
The movement in exit cost liabilities for the six months ended June 30, 2014 was as follows: | ||||||||||||||||
(in millions) | ||||||||||||||||
Liability balance, January 1, 2014 | $ | 308 | ||||||||||||||
Charges | 383 | |||||||||||||||
Cash spent | (230 | ) | ||||||||||||||
Currency/other | (22 | ) | ||||||||||||||
Liability balance, June 30, 2014 | $ | 439 | ||||||||||||||
Cash payments related to exit costs at PMI were $230 million and $30 million for the six months and three months ended June 30, 2014, respectively, and $12 million and $7 million for the six months and three months ended June 30, 2013, respectively. Future cash payments for exit costs incurred to date are expected to be approximately $439 million, and will be substantially paid by the second quarter of 2015. | ||||||||||||||||
The pre-tax asset impairment and exit costs shown above are primarily a result of the following: | ||||||||||||||||
The Netherlands | ||||||||||||||||
On April 4, 2014, PMI announced the initiation by its affiliate, Philip Morris Holland B.V. (“PMH”), of consultations with employee representatives on a proposal to discontinue cigarette production at its factory located in Bergen op Zoom, the Netherlands. PMH has reached an agreement with the trade unions and their members on a social plan, and plans to cease cigarette production by September 1, 2014. For the six months and three months ended June 30, 2014, total pre-tax asset impairment and exit costs of $488 million were recorded for this program in the European Union segment. | ||||||||||||||||
Other Exit Costs | ||||||||||||||||
Other Separation Program Charges | ||||||||||||||||
PMI recorded other pre-tax separation program charges of $24 million and $1 million for the six months and three months ended June 30, 2014, respectively, related to severance costs for a factory closure in Australia. | ||||||||||||||||
Contract Termination Charges | ||||||||||||||||
During the six months and three months ended June 30, 2013, PMI recorded exit costs of $8 million and $5 million, respectively, related to the termination of distribution agreements. |
Stock_Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Plans | ' |
Stock Plans: | |
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. Up to 30 million shares of PMI’s common stock may be issued under the 2012 Plan. At June 30, 2014, shares available for grant under the 2012 Plan were 24,799,330. | |
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. At June 30, 2014, shares available for grant under the plan were 715,904. | |
During the six months ended June 30, 2014, PMI granted 2.4 million shares of deferred stock awards to eligible employees at a weighted-average grant date fair value of $77.74 per share. During the six months ended June 30, 2013, PMI granted 2.8 million shares of deferred stock awards to eligible employees at a weighted-average grant date fair value of $88.43 per share. PMI recorded compensation expense related to stock awards of $113 million and $124 million during the six months ended June 30, 2014 and 2013, respectively and $47 million and $52 million during the three months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, PMI had $288 million of total unrecognized compensation cost related to non-vested deferred stock awards. The cost is recognized over the original restriction period of the awards, which is typically three or more years after the date of the award, subject to earlier vesting on death or disability or normal retirement, or separation from employment by mutual agreement after reaching age 58. | |
During the six months ended June 30, 2014, 3.4 million shares of PMI restricted stock and deferred stock awards vested. The grant date fair value of all the vested shares was approximately $205 million. The total fair value of restricted stock and deferred stock awards that vested during the six months ended June 30, 2014 was approximately $270 million. |
Benefit_Plans
Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [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 | |||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
Net periodic pension cost consisted of the following: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
For the Six Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 3 | $ | 4 | $ | 104 | $ | 127 | |||||||||
Interest cost | 8 | 8 | 103 | 84 | |||||||||||||
Expected return on plan assets | (8 | ) | (8 | ) | (177 | ) | (173 | ) | |||||||||
Amortization: | |||||||||||||||||
Net loss | 3 | 6 | 57 | 102 | |||||||||||||
Prior service cost | — | 1 | 4 | 5 | |||||||||||||
Net transition obligation | — | — | — | 1 | |||||||||||||
Net periodic pension cost | $ | 6 | $ | 11 | $ | 91 | $ | 146 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
For the Three Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 52 | $ | 62 | |||||||||
Interest cost | 4 | 4 | 52 | 41 | |||||||||||||
Expected return on plan assets | (4 | ) | (4 | ) | (89 | ) | (86 | ) | |||||||||
Amortization: | |||||||||||||||||
Net loss | 1 | 3 | 29 | 51 | |||||||||||||
Prior service cost | — | 1 | 2 | 3 | |||||||||||||
Net transition obligation | — | — | — | 1 | |||||||||||||
Net periodic pension cost | $ | 3 | $ | 6 | $ | 46 | $ | 72 | |||||||||
Employer Contributions | |||||||||||||||||
PMI makes, and plans to make, contributions, to the extent that they are tax deductible and to meet specific funding requirements of its funded U.S. and non-U.S. plans. Employer contributions of $82 million were made to the pension plans during the six months ended June 30, 2014. Currently, PMI anticipates making additional contributions during the remainder of 2014 of approximately $53 million to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest rates. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, net | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 was as follows: | |||||||||||||||||||||
Goodwill | Other Intangible Assets, net | ||||||||||||||||||||
(in millions) | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
European Union | $ | 1,609 | $ | 1,472 | $ | 620 | $ | 604 | |||||||||||||
Eastern Europe, Middle East & Africa | 584 | 617 | 225 | 228 | |||||||||||||||||
Asia | 4,039 | 3,960 | 1,260 | 1,251 | |||||||||||||||||
Latin America & Canada | 2,853 | 2,844 | 1,104 | 1,110 | |||||||||||||||||
Total | $ | 9,085 | $ | 8,893 | $ | 3,209 | $ | 3,193 | |||||||||||||
Goodwill is due primarily to PMI’s acquisitions in Canada, Colombia, Greece, Indonesia, Mexico, Pakistan and Serbia, as well as the business combination in the Philippines. The movements in goodwill from December 31, 2013, were as follows: | |||||||||||||||||||||
(in millions) | European | Eastern | Asia | Latin | Total | ||||||||||||||||
Union | Europe, | America & | |||||||||||||||||||
Middle East | Canada | ||||||||||||||||||||
& | |||||||||||||||||||||
Africa | |||||||||||||||||||||
Balances, December 31, 2013 | $ | 1,472 | $ | 617 | $ | 3,960 | $ | 2,844 | $ | 8,893 | |||||||||||
Changes due to: | |||||||||||||||||||||
Acquisitions | 153 | — | — | — | 153 | ||||||||||||||||
Currency | (16 | ) | (33 | ) | 79 | 9 | 39 | ||||||||||||||
Balances, June 30, 2014 | $ | 1,609 | $ | 584 | $ | 4,039 | $ | 2,853 | $ | 9,085 | |||||||||||
The increase in goodwill from acquisitions was due to the preliminary purchase price allocation for PMI's June 2014 purchase of Nicocigs Limited, a U.K.-based e-vapor company. For further details, see Note 17. Acquisitions and Other Business Arrangements. | |||||||||||||||||||||
Additional details of other intangible assets were as follows: | |||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||
(in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Non-amortizable intangible assets | $ | 1,818 | $ | 1,798 | |||||||||||||||||
Amortizable intangible assets | 1,983 | $ | 592 | 1,940 | $ | 545 | |||||||||||||||
Total other intangible assets | $ | 3,801 | $ | 592 | $ | 3,738 | $ | 545 | |||||||||||||
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, the range of useful lives as well as the weighted-average remaining useful life of amortizable intangible assets at June 30, 2014, were as follows: | |||||||||||||||||||||
(dollars in millions) | Gross Carrying Amount | Initial Estimated | Weighted-Average | ||||||||||||||||||
Useful Lives | Remaining Useful Life | ||||||||||||||||||||
Trademarks | $ | 1,595 | 2 - 40 years | 24 years | |||||||||||||||||
Distribution networks | 162 | 20 - 30 years | 14 years | ||||||||||||||||||
Non-compete agreements | 134 | 3 - 10 years | 1 year | ||||||||||||||||||
Other (including farmer | 92 | 12.5 - 17 years | 13 years | ||||||||||||||||||
contracts and intellectual property rights) | |||||||||||||||||||||
$ | 1,983 | ||||||||||||||||||||
Pre-tax amortization expense for intangible assets during the six months ended June 30, 2014 and 2013 was $44 million and $48 million, respectively, and $22 million and $24 million for the three months ended June 30, 2014 and 2013, respectively. Amortization expense for each of the next five years is estimated to be $88 million or less, assuming no additional transactions occur that require the amortization of intangible assets. | |||||||||||||||||||||
The increase in the gross carrying amount of other intangible assets from December 31, 2013, was due to currency movements, as well as the purchase of additional patent rights related to an aerosol delivery technology acquired in 2011. | |||||||||||||||||||||
During the first quarter of 2014, PMI completed its annual review of goodwill and non-amortizable intangible assets for potential impairment, and no impairment charges were required as a result of this review. |
Financial_Instruments
Financial Instruments | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 condensed 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 June 30, 2014, PMI had contracts with aggregate notional amounts of $16.4 billion of which $3.8 billion related to cash flow hedges, $2.6 billion related to hedges of net investments in foreign operations and $10.0 billion related to other derivatives that primarily offset currency exposures on intercompany financing. | |||||||||||||||||||||
The fair value of PMI’s foreign exchange contracts included in the condensed consolidated balance sheet as of June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
(in millions) | Balance Sheet Classification | At June 30, 2014 | At December 31, 2013 | Balance Sheet Classification | At June 30, 2014 | At December 31, 2013 | |||||||||||||||
Foreign exchange contracts designated as hedging instruments | Other current assets | $ | 66 | $ | 111 | Other accrued liabilities | $ | 6 | $ | 44 | |||||||||||
Other assets | 13 | — | Other liabilities | 44 | 46 | ||||||||||||||||
Foreign exchange contracts not designated as hedging instruments | Other current assets | 11 | 42 | Other accrued liabilities | 64 | 12 | |||||||||||||||
Other liabilities | — | 14 | |||||||||||||||||||
Total derivatives | $ | 90 | $ | 153 | $ | 114 | $ | 116 | |||||||||||||
Hedging activities, which represent movement in derivatives as well as the respective underlying transactions, had the following effect on PMI’s condensed consolidated statements of earnings and other comprehensive earnings for the six months and three months ended June 30, 2014 and 2013: | |||||||||||||||||||||
(in millions) | For the Six Months Ended June 30, 2014 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 32 | $ | — | $ | 32 | |||||||||||||||
Cost of sales | — | — | — | ||||||||||||||||||
Marketing, administration and research costs | (1 | ) | — | (1 | ) | ||||||||||||||||
Operating income | 31 | — | 31 | ||||||||||||||||||
Interest expense, net | (16 | ) | 1 | (15 | ) | ||||||||||||||||
Earnings before income taxes | 15 | 1 | 16 | ||||||||||||||||||
Provision for income taxes | (2 | ) | — | (2 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 13 | $ | 1 | $ | 14 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (15 | ) | $ | 2 | $ | (13 | ) | |||||||||||||
Recognized losses | (40 | ) | 5 | (35 | ) | ||||||||||||||||
Net impact on equity | $ | (55 | ) | $ | 7 | $ | (48 | ) | |||||||||||||
Currency translation adjustments | $ | 36 | $ | (7 | ) | $ | 29 | ||||||||||||||
(in millions) | For the Six Months Ended June 30, 2013 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 125 | $ | — | $ | 125 | |||||||||||||||
Cost of sales | 6 | — | 6 | ||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||
Operating income | 131 | — | 131 | ||||||||||||||||||
Interest expense, net | (22 | ) | 2 | (20 | ) | ||||||||||||||||
Earnings before income taxes | 109 | 2 | 111 | ||||||||||||||||||
Provision for income taxes | (14 | ) | 1 | (13 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 95 | $ | 3 | $ | 98 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (109 | ) | $ | 14 | $ | (95 | ) | |||||||||||||
Recognized gains | 179 | (23 | ) | 156 | |||||||||||||||||
Net impact on equity | $ | 70 | $ | (9 | ) | $ | 61 | ||||||||||||||
Currency translation adjustments | $ | 16 | $ | (1 | ) | $ | 15 | ||||||||||||||
(in millions) | For the Three Months Ended June 30, 2014 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 17 | $ | — | $ | 17 | |||||||||||||||
Cost of sales | — | — | — | ||||||||||||||||||
Marketing, administration and research costs | (1 | ) | — | (1 | ) | ||||||||||||||||
Operating income | 16 | — | 16 | ||||||||||||||||||
Interest expense, net | (9 | ) | 3 | (6 | ) | ||||||||||||||||
Earnings before income taxes | 7 | 3 | 10 | ||||||||||||||||||
Provision for income taxes | (1 | ) | — | (1 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 6 | $ | 3 | $ | 9 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (7 | ) | $ | 1 | $ | (6 | ) | |||||||||||||
Recognized losses | (13 | ) | 2 | (11 | ) | ||||||||||||||||
Net impact on equity | $ | (20 | ) | $ | 3 | $ | (17 | ) | |||||||||||||
Currency translation adjustments | $ | 11 | $ | 4 | $ | 15 | |||||||||||||||
(in millions) | For the Three Months Ended June 30, 2013 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 84 | $ | — | $ | 84 | |||||||||||||||
Cost of sales | 3 | — | 3 | ||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||
Operating income | 87 | — | 87 | ||||||||||||||||||
Interest expense, net | (13 | ) | 2 | (11 | ) | ||||||||||||||||
Earnings before income taxes | 74 | 2 | 76 | ||||||||||||||||||
Provision for income taxes | (10 | ) | 1 | (9 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 64 | $ | 3 | $ | 67 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (74 | ) | $ | 10 | $ | (64 | ) | |||||||||||||
Recognized gains | 70 | (10 | ) | 60 | |||||||||||||||||
Net impact on equity | $ | (4 | ) | $ | — | $ | (4 | ) | |||||||||||||
Currency translation adjustments | $ | 13 | $ | (1 | ) | $ | 12 | ||||||||||||||
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 condensed consolidated statements of earnings. During the six months and three months ended June 30, 2014 and 2013, ineffectiveness related to cash flow hedges was not material. As of June 30, 2014, subtantially all of PMI's hedged forecasted transactions are for periods not exceeding the next eighteen months with the exception of one foreign exchange contract that expires in May 2024. The impact of these hedges is included in operating cash flows on PMI’s condensed consolidated statements of cash flows. | |||||||||||||||||||||
For the six months and three months ended June 30, 2014 and 2013, foreign exchange contracts that were designated as cash flow hedging instruments impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||
(pre-tax, in millions) | For the Six Months Ended June 30, | ||||||||||||||||||||
Derivatives in | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Cash Flow | Classification of Gain/(Loss) | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Reclassified from Other | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | Comprehensive Earnings/(Losses) into Earnings | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | (40 | ) | $ | 179 | ||||||||||||||||
Net revenues | $ | 32 | $ | 125 | |||||||||||||||||
Cost of sales | — | 6 | |||||||||||||||||||
Marketing, administration | (1 | ) | — | ||||||||||||||||||
and research costs | |||||||||||||||||||||
Interest expense, net | (16 | ) | (22 | ) | |||||||||||||||||
Total | $ | 15 | $ | 109 | $ | (40 | ) | $ | 179 | ||||||||||||
(pre-tax, in millions) | For the Three Months Ended June 30, | ||||||||||||||||||||
Derivatives in | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Cash Flow | Classification of Gain/(Loss) | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Reclassified from Other | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | Comprehensive Earnings/(Losses) into Earnings | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | (13 | ) | $ | 70 | ||||||||||||||||
Net revenues | $ | 17 | $ | 84 | |||||||||||||||||
Cost of sales | — | 3 | |||||||||||||||||||
Marketing, administration | (1 | ) | — | ||||||||||||||||||
and research costs | |||||||||||||||||||||
Interest expense, net | (9 | ) | (13 | ) | |||||||||||||||||
Total | $ | 7 | $ | 74 | $ | (13 | ) | $ | 70 | ||||||||||||
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 six months ended June 30, 2014 and 2013, these hedges of net investments resulted in gains, net of income taxes of $93 million and $36 million, respectively. For the three months ended June 30, 2014 and 2013, these hedges of net investments resulted in gains (losses), net of income taxes, of $76 million and $(55) million, respectively. These gains (losses) were reported as a component of accumulated other comprehensive losses within currency translation adjustments. For the six months and three months ended June 30, 2014 and 2013, ineffectiveness related to net investment hedges was not material. Other investing cash flows on PMI’s condensed consolidated statements of cash flows include the premiums paid for, and settlements of, net investment hedges. | |||||||||||||||||||||
For the six months and three months ended June 30, 2014 and 2013, foreign exchange contracts that were designated as net investment hedging instruments impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||
(pre-tax, in millions) | For the Six Months Ended June 30, | ||||||||||||||||||||
Derivatives in Net | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Investment | Classification of | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Gain/(Loss) Reclassified | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | from Other Comprehensive | ||||||||||||||||||||
Earnings/(Losses) into Earnings | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | 36 | $ | 16 | |||||||||||||||||
Interest expense, net | $ | — | $ | — | |||||||||||||||||
(pre-tax, in millions) | For the Three Months Ended June 30, | ||||||||||||||||||||
Derivatives in Net | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Investment | Classification of | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Gain/(Loss) Reclassified | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | from Other Comprehensive | ||||||||||||||||||||
Earnings/(Losses) into Earnings | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | 11 | $ | 13 | |||||||||||||||||
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 condensed consolidated statements of earnings. For the six months ended June 30, 2014 and 2013, the gains (losses) from contracts for which PMI did not apply hedge accounting were $94 million and $(20) million, respectively. For the three months ended June 30, 2014 and 2013, the gains from contracts for which PMI did not apply hedge accounting were $142 million and $70 million, respectively. The gains (losses) from these contracts substantially offset the losses and gains generated by the underlying intercompany and third-party loans being hedged. | |||||||||||||||||||||
As a result, for the six months and three months ended June 30, 2014 and 2013, these items impacted the condensed consolidated statements of earnings as follows: | |||||||||||||||||||||
(pre-tax, in millions) | For the Three Months Ended June 30, | ||||||||||||||||||||
Derivatives not Designated | Statement of Earnings | Amount of Gain/(Loss) | |||||||||||||||||||
as Hedging Instruments | Classification of | Recognized in Earnings | |||||||||||||||||||
Gain/(Loss) | |||||||||||||||||||||
For the Six Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||
Interest expense, net | $ | 1 | $ | 2 | $ | 3 | $ | 2 | |||||||||||||
Qualifying Hedging Activities Reported in Accumulated Other Comprehensive Losses | |||||||||||||||||||||
Derivative gains or losses reported in accumulated other comprehensive losses are a result of qualifying hedging activity. Transfers of these gains or losses to earnings are offset by the corresponding gains or losses on the underlying hedged item. Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: | |||||||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain at beginning of period | $ | 63 | $ | 92 | $ | 32 | $ | 157 | |||||||||||||
Derivative (gains)/losses transferred to earnings | (13 | ) | (95 | ) | (6 | ) | (64 | ) | |||||||||||||
Change in fair value | (35 | ) | 156 | (11 | ) | 60 | |||||||||||||||
Gain as of June 30, | $ | 15 | $ | 153 | $ | 15 | $ | 153 | |||||||||||||
At June 30, 2014, PMI expects $19 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the condensed consolidated statement of earnings within the next 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 13. Fair Value Measurements and Note 15. Balance Sheet Offsetting for additional discussion of derivative financial instruments. |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interest | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Temporary Equity Disclosure [Abstract] | ' | |||
Redeemable Noncontrolling Interest | ' | |||
Redeemable Noncontrolling Interest: | ||||
Philippines Business Combination: | ||||
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 condensed 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 at that date was reclassified to noncontrolling interests within stockholders' deficit on the December 31, 2013 consolidated balance sheet. | ||||
The redeemable noncontrolling interest balance at June 30, 2013 was $1,296 million. The movement in redeemable noncontrolling interest for the six months ended June 30, 2013 was as follows: | ||||
(in millions) | ||||
Redeemable noncontrolling interest at December 31, 2012 | $ | 1,301 | ||
Share of net earnings | 67 | |||
Dividend payments | (48 | ) | ||
Currency translation losses | (24 | ) | ||
Redeemable noncontrolling interest at June 30, 2013 | $ | 1,296 | ||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share: | |||||||||||||||||
Basic and diluted earnings per share (“EPS”) were calculated using the following: | |||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net earnings attributable to PMI | $ | 3,726 | $ | 4,249 | $ | 1,851 | $ | 2,124 | |||||||||
Less distributed and undistributed earnings attributable to share-based payment awards | 17 | 23 | 9 | 11 | |||||||||||||
Net earnings for basic and diluted EPS | $ | 3,709 | $ | 4,226 | $ | 1,842 | $ | 2,113 | |||||||||
Weighted-average shares for basic and diluted EPS | 1,577 | 1,639 | 1,571 | 1,631 | |||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method. | |||||||||||||||||
For the 2014 and 2013 computations, there were no antidilutive stock options. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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’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 and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management. | |||||||||||||||||
Segment data were as follows: | |||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net revenues: | |||||||||||||||||
European Union | $ | 14,448 | $ | 13,768 | $ | 7,829 | $ | 7,245 | |||||||||
Eastern Europe, Middle East & Africa | 10,236 | 9,800 | 5,674 | 5,377 | |||||||||||||
Asia | 9,572 | 10,632 | 5,097 | 5,381 | |||||||||||||
Latin America & Canada | 4,574 | 4,810 | 2,451 | 2,480 | |||||||||||||
Net revenues | $ | 38,830 | $ | 39,010 | $ | 21,051 | $ | 20,483 | |||||||||
Earnings before income taxes: | |||||||||||||||||
Operating companies income: | |||||||||||||||||
European Union | $ | 1,689 | $ | 2,020 | $ | 711 | $ | 1,082 | |||||||||
Eastern Europe, Middle East & Africa | 2,014 | 1,880 | 1,087 | 945 | |||||||||||||
Asia | 1,815 | 2,470 | 900 | 1,128 | |||||||||||||
Latin America & Canada | 467 | 509 | 265 | 255 | |||||||||||||
Amortization of intangibles | (44 | ) | (48 | ) | (22 | ) | (24 | ) | |||||||||
General corporate expenses | (80 | ) | (112 | ) | (40 | ) | (54 | ) | |||||||||
Less: | |||||||||||||||||
Equity (income)/loss in unconsolidated subsidiaries, net | (36 | ) | 9 | (27 | ) | 5 | |||||||||||
Operating income | 5,825 | 6,728 | 2,874 | 3,337 | |||||||||||||
Interest expense, net | (522 | ) | (482 | ) | (254 | ) | (246 | ) | |||||||||
Earnings before income taxes | $ | 5,303 | $ | 6,246 | $ | 2,620 | $ | 3,091 | |||||||||
Items affecting the comparability of results from operations are asset impairment and exit costs. See Note 2. Asset Impairment and Exit Costs for a breakdown of these costs by segment. |
Contingencies
Contingencies | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Contingencies | ' | ||||||||
Contingencies: | |||||||||
Tobacco-Related Litigation | |||||||||
Legal proceedings covering a wide range of matters are pending or threatened against us, and/or our subsidiaries, and/or our indemnitees in various jurisdictions. Our indemnitees include distributors, licensees, and others that have been named as parties in certain cases and that we have agreed to defend, as well as to pay costs and some or all of judgments, if any, that may be entered against them. Pursuant to the terms of the Distribution Agreement between Altria Group, Inc. ("Altria") and PMI, PMI will indemnify Altria and Philip Morris USA Inc. ("PM USA"), a U.S. tobacco subsidiary of Altria, for tobacco product claims based in substantial part on products manufactured by PMI or contract manufactured for PMI by PM USA, and PM USA will indemnify PMI for tobacco product claims based in substantial part on products manufactured by PM USA, excluding tobacco products contract manufactured for PMI. | |||||||||
It is possible that there could be adverse developments in pending cases against us and our subsidiaries. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. | |||||||||
Damages claimed in some of the tobacco-related litigation are significant and, in certain cases in Brazil, Canada, 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 July 30, 2014, August 1, 2013 and August 1, 2012: | |||||||||
Type of Case | Number of | Number of Cases Pending as of | Number of Cases Pending as of | ||||||
Cases Pending as of July 30, 2014 | 1-Aug-13 | 1-Aug-12 | |||||||
Individual Smoking and Health Cases | 63 | 63 | 74 | ||||||
Smoking and Health Class Actions | 11 | 11 | 10 | ||||||
Health Care Cost Recovery Actions | 15 | 15 | 14 | ||||||
Lights Class Actions | 1 | 1 | 2 | ||||||
Individual Lights Cases | 2 | 1 | 7 | ||||||
Public Civil Actions | 2 | 4 | 3 | ||||||
Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 422 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. | |||||||||
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 $5,800) 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 $44,800). 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 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 $450) 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. | |||||
Pending claims related to tobacco products generally fall within the following categories: | |||||||||
Smoking and Health Litigation: These cases primarily allege personal injury and are brought by individual plaintiffs or on behalf of a class or purported class of individual plaintiffs. Plaintiffs' allegations of liability in these cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, breach of express and implied warranties, violations of deceptive trade practice laws and consumer protection statutes. Plaintiffs in these cases seek various forms of relief, including compensatory and other damages, and injunctive and equitable relief. Defenses raised in these cases include licit activity, failure to state a claim, lack of defect, lack of proximate cause, assumption of the risk, contributory negligence, and statute of limitations. | |||||||||
As of July 30, 2014, there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: | |||||||||
• | 63 cases brought by individual plaintiffs in Argentina (24), Brazil (23), Canada (2), Chile (6), Costa Rica (2), Greece (1), Italy (3), the Philippines (1) and Scotland (1), compared with 63 such cases on August 1, 2013, and 74 cases on August 1, 2012; and | ||||||||
• | 11 cases brought on behalf of classes of individual plaintiffs in Brazil (2) and Canada (9), compared with 11 such cases on August 1, 2013 and 10 such cases on August 1, 2012. | ||||||||
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 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. Plaintiff may appeal. | |||||||||
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. Closing arguments are scheduled to take place from September through November 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. Closing arguments are scheduled to take place from September through November 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), 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). | |||||||||
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), 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), 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), 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), 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), 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), 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 July 30, 2014, there were 15 health care cost recovery cases pending against us, our subsidiaries or indemnitees in Canada (9), Korea (1) and Nigeria (5), compared with 15 such cases on August 1, 2013 and 14 such cases on August 1, 2012. | |||||||||
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), 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), 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), 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.” Pre-trial discovery has begun. | |||||||||
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), 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.” Preliminary motions are pending. | |||||||||
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), 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), 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), and other members of the industry are defendants. The claim was filed by the government of the province of Prince Edward Island based on legislation enacted in the province that is similar to the laws enacted in several other Canadian provinces. The legislation authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” 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 the health care cost recovery case in Korea, the National Health Insurance Service v. KT&G, et. al., filed April 14, 2014, our subsidiary and other Korean manufacturers are defendants. Plaintiff alleges that defendants concealed the health hazards of smoking, marketed to youth, added ingredients to make their products more harmful and addictive, and misled consumers into believing that Lights cigarettes are safer than regular cigarettes. The National Health Insurance Service seeks to recover approximately $53.7 million allegedly incurred in treating 3,484 patients with small cell lung cancer, squamous cell lung cancer, and squamous cell laryngeal cancer from 2003 to 2012. We have been served. | |||||||||
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 July 30, 2014, the following lights cases were pending against our subsidiaries or indemnitees: | |||||||||
• | 1 case brought on behalf of individual plaintiffs in Israel, compared with 1 such case on August 1, 2013 and 2 such cases on August 1, 2012; and | ||||||||
• | 2 cases brought by individual plaintiffs in Chile (1) and Italy (1), compared with 1 such case on August 1, 2013, and 7 such cases on August 1, 2012. | ||||||||
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 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 July 30, 2014, there were 2 public civil actions pending against our subsidiaries in Argentina (1) and Venezuela (1), compared with 4 such cases on August 1, 2013, and 3 such cases on August 1, 2012. | |||||||||
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 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. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes: | |
Income tax provisions for jurisdictions outside the United States, as well as state and local income tax provisions, were determined on a separate company basis and the related assets and liabilities were recorded in PMI’s condensed consolidated balance sheets. | |
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 condensed consolidated financial statements in the first quarter of 2013. | |
PMI’s effective tax rates for the six months and three months ended June 30, 2014 were 28.8% and 28.7%, respectively. PMI's effective tax rates for the six months and three months ended June 30, 2013 were 29.2% and 28.9%, respectively. The effective tax rate for the six months ended June 30, 2013 was unfavorably impacted by the additional expense associated with the Act ($17 million). Excluding the special 2013 tax item, the change in the effective tax rate for the six months ended June 30, 2014, as compared to the six months ended June 30, 2013, was primarily due to earnings mix and repatriation cost differences. | |
The effective tax rates are based on PMI’s full-year geographic earnings mix projections and cash repatriation plans. Changes in earnings mix or in cash repatriation plans could have an impact on the effective tax rates, which PMI monitors each quarter. Significant judgment is required in determining income tax provisions and in evaluating tax positions. | |
PMI is regularly examined by tax authorities around the world and is currently under examination in a number of jurisdictions. The U.S. federal statute of limitations remains open for the years 2007 and onward. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three to five years. | |
It is reasonably possible that, within the next 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. |
Indebtedness
Indebtedness | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Debt Disclosure [Abstract] | ' | |||||||||
Indebtedness | ' | |||||||||
Indebtedness: | ||||||||||
Short-term Borrowings: | ||||||||||
At June 30, 2014 and December 31, 2013, PMI’s short-term borrowings, consisting of commercial paper and bank loans to certain PMI subsidiaries, had a carrying value of $1,941 million and $2,400 million, respectively. The fair value of PMI’s short-term borrowings, based on current market interest rates, approximates carrying value. | ||||||||||
Long-term Debt: | ||||||||||
At June 30, 2014 and December 31, 2013, PMI’s long-term debt consisted of the following: | ||||||||||
(in millions) | June 30, 2014 | December 31, 2013 | ||||||||
U.S. dollar notes, 0.277% to 6.375% (average interest rate 3.878%), due through 2043 | $ | 15,259 | $ | 16,500 | ||||||
Foreign currency obligations: | ||||||||||
Euro notes, 1.750% to 5.875% (average interest rate 3.104%), due through 2033 | 10,253 | 7,303 | ||||||||
Swiss franc notes, 0.750% to 2.000% (average interest rate 1.217%), due through 2024 | 1,871 | 1,289 | ||||||||
Other (average interest rate 3.644%), due through 2024 | 185 | 186 | ||||||||
27,568 | 25,278 | |||||||||
Less current portion of long-term debt | 407 | 1,255 | ||||||||
$ | 27,161 | $ | 24,023 | |||||||
Other foreign currency debt above includes mortgage debt in Switzerland and capital lease obligations at June 30, 2014 and December 31, 2013. | ||||||||||
PMI's debt issuances in the first six months of 2014 were as follows: | ||||||||||
(in millions) | ||||||||||
Type | Face Value (d) | Interest Rate | Issuance | Maturity | ||||||
EURO notes | (a) | €750 (approximately $1,029) | 1.875 | % | Mar-14 | Mar-21 | ||||
EURO notes | (a) | €1,000 (approximately $1,372) | 2.875 | % | Mar-14 | Mar-26 | ||||
EURO notes | (b) | €500 (approximately $697) | 2.875 | % | May-14 | May-29 | ||||
Swiss franc notes | (c) | CHF275 (approximately $311) | 0.75 | % | May-14 | Dec-19 | ||||
Swiss franc notes | (b) | CHF250 (approximately $283) | 1.625 | % | May-14 | May-24 | ||||
(a) Interest on these notes is payable annually in arrears beginning in March 2015. | ||||||||||
(b) Interest on these notes is payable annually in arrears beginning in May 2015. | ||||||||||
(c) Interest on these notes is payable annually in arrears beginning in December 2014. | ||||||||||
(d) U.S. dollar 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 will be used for general corporate purposes. | ||||||||||
Credit Facilities: | ||||||||||
On January 31, 2014, PMI extended the term of its $2.0 billion 364-day revolving credit facility until February 10, 2015. On February 28, 2014, PMI replaced its $2.5 billion multi-year revolving credit facility, expiring March 31, 2015, with a new $2.5 billion multi-year credit facility, expiring on February 28, 2019. | ||||||||||
At June 30, 2014, PMI's total committed credit facilities were as follows: | ||||||||||
(in billions) | ||||||||||
Type | Committed | |||||||||
Credit | ||||||||||
Facilities | ||||||||||
364-day revolving credit, expiring February 10, 2015 | $ | 2 | ||||||||
Multi-year revolving credit, expiring February 28, 2019 | 2.5 | |||||||||
Multi-year revolving credit, expiring October 25, 2016 | 3.5 | |||||||||
Total facilities | $ | 8 | ||||||||
At June 30, 2014, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 in the table shown below. See Note 6. Financial Instruments for an additional discussion of derivative financial instruments. | |||||||||||||||||
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 $16 million of capital lease obligations, was $27,552 million at June 30, 2014. 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 in the table shown below. | |||||||||||||||||
The aggregate fair values of PMI’s derivative financial instruments and debt as of June 30, 2014, were as follows: | |||||||||||||||||
(in millions) | Fair Value | Quoted Prices | Significant | Significant | |||||||||||||
at | in Active | Other | Unobservable | ||||||||||||||
June 30, | Markets for | Observable | Inputs | ||||||||||||||
2014 | Identical | Inputs | (Level 3) | ||||||||||||||
Assets/Liabilities | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange contracts | $ | 90 | $ | — | $ | 90 | $ | — | |||||||||
Total assets | $ | 90 | $ | — | $ | 90 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Debt | $ | 29,444 | $ | 29,255 | $ | 189 | $ | — | |||||||||
Foreign exchange contracts | 114 | — | 114 | — | |||||||||||||
Total liabilities | $ | 29,558 | $ | 29,255 | $ | 303 | $ | — | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Losses | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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: | |||||||||||||
(in millions) | At June 30, 2014 | At December 31, 2013 | At June 30, 2013 | ||||||||||
Currency translation adjustments | $ | (2,323 | ) | $ | (2,207 | ) | $ | (1,021 | ) | ||||
Pension and other benefits | (2,006 | ) | (2,046 | ) | (3,247 | ) | |||||||
Derivatives accounted for as hedges | 15 | 63 | 153 | ||||||||||
Total accumulated other comprehensive losses | $ | (4,314 | ) | $ | (4,190 | ) | $ | (4,115 | ) | ||||
Reclassifications from Other Comprehensive Earnings | |||||||||||||
The movements in accumulated other comprehensive losses and the related tax impact, for each of the components above, that are due to current period activity and reclassifications to the income statement are shown on the condensed consolidated statements of comprehensive earnings for the six months and three months ended June 30, 2014 and 2013. For additional information, see Note 4. Benefit Plans and Note 6. Financial Instruments for disclosures related to PMI's pension and other benefits, and derivative financial instruments, respectively. |
Balance_Sheet_Offsetting
Balance Sheet Offsetting | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
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 condensed consolidated balance sheets. Collateral associated with these arrangements is in the form of cash and is unrestricted. See Note 6. Financial Instruments for disclosures related to PMI's derivative financial instruments. | |||||||||||||||||||
The effects of these foreign exchange contract assets and liabilities on PMI's condensed consolidated balance sheets were as follows: | |||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Condensed Consolidated Balance Sheet | Net Amounts Presented in the Condensed Consolidated Balance Sheet | Gross Amounts Not Offset in the | |||||||||||||||
Condensed Consolidated | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||
Financial Instruments | Cash Collateral Received/Pledged | ||||||||||||||||||
Net Amount | |||||||||||||||||||
At June 30, 2014 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 90 | $ | — | $ | 90 | $ | (21 | ) | $ | (56 | ) | $ | 13 | |||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 114 | $ | — | $ | 114 | $ | (21 | ) | $ | (89 | ) | $ | 4 | |||||
At December 31, 2013 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 153 | $ | — | $ | 153 | $ | (52 | ) | $ | (79 | ) | $ | 22 | |||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 116 | $ | — | $ | 116 | $ | (52 | ) | $ | (47 | ) | $ | 17 | |||||
Investments_in_Unconsolidated_
Investments in Unconsolidated Subsidiaries | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||
Investments in Unconsolidated Subsidiaries | ' | |||||||
Investments in Unconsolidated Subsidiaries: | ||||||||
At June 30, 2014 and December 31, 2013, PMI had total investments in unconsolidated subsidiaries of $1,508 million and $1,536 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 and movements in currency translation adjustments. The carrying value of our equity method investments at the acquisition date exceeded our share of the unconsolidated subsidiaries' book value by $1,417 million, including $1,264 million attributable to goodwill. The difference between the investment carrying value and the amount of underlying equity in net assets, excluding the $1,264 million attributable to goodwill, is being amortized on a straight-line basis over the underlying assets' estimated useful lives of 3 to 20 years. At June 30, 2014 and December 31, 2013, PMI received year-to-date dividends from unconsolidated subsidiaries of $45 million and $1 million, respectively. | ||||||||
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 condensed consolidated balance sheets. | ||||||||
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 $760 million. An additional payment of up to $100 million, which is contingent on Megapolis's 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 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 had 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 condensed consolidated balance sheets. | ||||||||
At June 30, 2014 and December 31, 2013, PMI's investments in other unconsolidated subsidiaries were $40 million and $42 million, respectively, with ownership percentages ranging from 40% to 50%. | ||||||||
PMI’s earnings activity from unconsolidated subsidiaries was as follows: | ||||||||
(in millions) | For the Six Months Ended June 30, 2014 | For the Three Months Ended June 30, 2014 | ||||||
Net revenues | $ | 2,606 | $ | 1,420 | ||||
PMI’s balance sheet activity related to unconsolidated subsidiaries was as follows: | ||||||||
(in millions) | At June 30, 2014 | At December 31, 2013 | ||||||
Receivables | $ | 584 | $ | 470 | ||||
Notes receivable | $ | 102 | $ | 100 | ||||
Other liabilities | $ | 90 | $ | 86 | ||||
The activity primarily related to agreements with PMI’s unconsolidated subsidiaries within the Eastern Europe, Middle East & Africa 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. |
Acquisitions_and_Other_Busines
Acquisitions and Other Business Arrangements | 6 Months Ended |
Jun. 30, 2014 | |
Business Combination, Description [Abstract] | ' |
Acquisitions and Other Business Arrangements | ' |
Acquisitions and Other Business Arrangements: | |
In June 2014, PMI acquired 100% of Nicocigs Limited, a leading U.K.-based e-vapor company, for $103 million, net of cash acquired, with additional contingent payments of up to $77 million, primarily relating to performance targets over a three-year period. The purchase price allocation is expected to be completed by the third quarter of 2014. The effect of this acquisition was not material to PMI's consolidated financial position, results of operations or cash flows in any of the periods presented. | |
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 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 agreed to 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. In March 2014, the dividend was declared and paid. The purchase of the remaining 20% interest resulted in a decrease to PMI's additional paid-in capital of $672 million. |
New_Accounting_Standards
New Accounting Standards | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ' | |
New Accounting Standards | ' | |
New Accounting Standards: | ||
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 contains principles that an entity will need to apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. | ||
Entities can apply the final standard using one of the following two methods: | ||
1 | retrospectively to each prior period presented; or | |
2 | retrospectively, with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application, with additional disclosures in reporting periods that include the date of initial application. | |
ASU 2014-09 is effective for interim and annual reporting periods beginning on or after January 1, 2017. Early application is not permitted. PMI is currently assessing the impact that the adoption of ASU 2014-09 will have on its financial position or results of operations. |
New_Accounting_Standards_Polic
New Accounting Standards (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ' | |
New Accounting Standards | ' | |
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 contains principles that an entity will need to apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. | ||
Entities can apply the final standard using one of the following two methods: | ||
1 | retrospectively to each prior period presented; or | |
2 | retrospectively, with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application, with additional disclosures in reporting periods that include the date of initial application. | |
ASU 2014-09 is effective for interim and annual reporting periods beginning on or after January 1, 2017. Early application is not permitted. PMI is currently assessing the impact that the adoption of ASU 2014-09 will have on its financial position or results of operations. |
Asset_Impairment_and_Exit_Cost1
Asset Impairment and Exit Costs (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Asset Impairment and Exit Costs | ' | |||||||||||||||
Pre-tax asset impairment and exit costs consisted of the following: | ||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Separation programs: | ||||||||||||||||
European Union | $ | 359 | $ | — | $ | 359 | $ | — | ||||||||
Asia | 24 | — | 1 | — | ||||||||||||
Total separation programs | 383 | — | 360 | — | ||||||||||||
Contract termination charges: | ||||||||||||||||
Asia | — | 8 | — | 5 | ||||||||||||
Total contract termination charges | — | 8 | — | 5 | ||||||||||||
Asset impairment charges: | ||||||||||||||||
European Union | 129 | — | 129 | — | ||||||||||||
Total asset impairment charges | 129 | — | 129 | — | ||||||||||||
Asset impairment and exit costs | $ | 512 | $ | 8 | $ | 489 | $ | 5 | ||||||||
Movement in the Exit Cost Liabilities | ' | |||||||||||||||
The movement in exit cost liabilities for the six months ended June 30, 2014 was as follows: | ||||||||||||||||
(in millions) | ||||||||||||||||
Liability balance, January 1, 2014 | $ | 308 | ||||||||||||||
Charges | 383 | |||||||||||||||
Cash spent | (230 | ) | ||||||||||||||
Currency/other | (22 | ) | ||||||||||||||
Liability balance, June 30, 2014 | $ | 439 | ||||||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||
Net periodic pension cost consisted of the following: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
For the Six Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 3 | $ | 4 | $ | 104 | $ | 127 | |||||||||
Interest cost | 8 | 8 | 103 | 84 | |||||||||||||
Expected return on plan assets | (8 | ) | (8 | ) | (177 | ) | (173 | ) | |||||||||
Amortization: | |||||||||||||||||
Net loss | 3 | 6 | 57 | 102 | |||||||||||||
Prior service cost | — | 1 | 4 | 5 | |||||||||||||
Net transition obligation | — | — | — | 1 | |||||||||||||
Net periodic pension cost | $ | 6 | $ | 11 | $ | 91 | $ | 146 | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
For the Three Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 52 | $ | 62 | |||||||||
Interest cost | 4 | 4 | 52 | 41 | |||||||||||||
Expected return on plan assets | (4 | ) | (4 | ) | (89 | ) | (86 | ) | |||||||||
Amortization: | |||||||||||||||||
Net loss | 1 | 3 | 29 | 51 | |||||||||||||
Prior service cost | — | 1 | 2 | 3 | |||||||||||||
Net transition obligation | — | — | — | 1 | |||||||||||||
Net periodic pension cost | $ | 3 | $ | 6 | $ | 46 | $ | 72 | |||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets, Net, by Segment | ' | ||||||||||||||||||||
Goodwill and other intangible assets, net, by segment was as follows: | |||||||||||||||||||||
Goodwill | Other Intangible Assets, net | ||||||||||||||||||||
(in millions) | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
European Union | $ | 1,609 | $ | 1,472 | $ | 620 | $ | 604 | |||||||||||||
Eastern Europe, Middle East & Africa | 584 | 617 | 225 | 228 | |||||||||||||||||
Asia | 4,039 | 3,960 | 1,260 | 1,251 | |||||||||||||||||
Latin America & Canada | 2,853 | 2,844 | 1,104 | 1,110 | |||||||||||||||||
Total | $ | 9,085 | $ | 8,893 | $ | 3,209 | $ | 3,193 | |||||||||||||
Movements in Goodwill | ' | ||||||||||||||||||||
The movements in goodwill from December 31, 2013, were as follows: | |||||||||||||||||||||
(in millions) | European | Eastern | Asia | Latin | Total | ||||||||||||||||
Union | Europe, | America & | |||||||||||||||||||
Middle East | Canada | ||||||||||||||||||||
& | |||||||||||||||||||||
Africa | |||||||||||||||||||||
Balances, December 31, 2013 | $ | 1,472 | $ | 617 | $ | 3,960 | $ | 2,844 | $ | 8,893 | |||||||||||
Changes due to: | |||||||||||||||||||||
Acquisitions | 153 | — | — | — | 153 | ||||||||||||||||
Currency | (16 | ) | (33 | ) | 79 | 9 | 39 | ||||||||||||||
Balances, June 30, 2014 | $ | 1,609 | $ | 584 | $ | 4,039 | $ | 2,853 | $ | 9,085 | |||||||||||
Other Intangible Assets | ' | ||||||||||||||||||||
Additional details of other intangible assets were as follows: | |||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||
(in millions) | Gross | Accumulated | Gross | Accumulated | |||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Non-amortizable intangible assets | $ | 1,818 | $ | 1,798 | |||||||||||||||||
Amortizable intangible assets | 1,983 | $ | 592 | 1,940 | $ | 545 | |||||||||||||||
Total other intangible assets | $ | 3,801 | $ | 592 | $ | 3,738 | $ | 545 | |||||||||||||
Gross Carrying Amount, Range of Useful Lives and Weighted-Average Remaining Useful Life of Amortizable Intangible Assets | ' | ||||||||||||||||||||
The gross carrying amount, the range of useful lives as well as the weighted-average remaining useful life of amortizable intangible assets at June 30, 2014, were as follows: | |||||||||||||||||||||
(dollars in millions) | Gross Carrying Amount | Initial Estimated | Weighted-Average | ||||||||||||||||||
Useful Lives | Remaining Useful Life | ||||||||||||||||||||
Trademarks | $ | 1,595 | 2 - 40 years | 24 years | |||||||||||||||||
Distribution networks | 162 | 20 - 30 years | 14 years | ||||||||||||||||||
Non-compete agreements | 134 | 3 - 10 years | 1 year | ||||||||||||||||||
Other (including farmer | 92 | 12.5 - 17 years | 13 years | ||||||||||||||||||
contracts and intellectual property rights) | |||||||||||||||||||||
$ | 1,983 | ||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 condensed consolidated balance sheet as of June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
(in millions) | Balance Sheet Classification | At June 30, 2014 | At December 31, 2013 | Balance Sheet Classification | At June 30, 2014 | At December 31, 2013 | |||||||||||||||
Foreign exchange contracts designated as hedging instruments | Other current assets | $ | 66 | $ | 111 | Other accrued liabilities | $ | 6 | $ | 44 | |||||||||||
Other assets | 13 | — | Other liabilities | 44 | 46 | ||||||||||||||||
Foreign exchange contracts not designated as hedging instruments | Other current assets | 11 | 42 | Other accrued liabilities | 64 | 12 | |||||||||||||||
Other liabilities | — | 14 | |||||||||||||||||||
Total derivatives | $ | 90 | $ | 153 | $ | 114 | $ | 116 | |||||||||||||
Hedging Activities Effect on Condensed 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 condensed consolidated statements of earnings and other comprehensive earnings for the six months and three months ended June 30, 2014 and 2013: | |||||||||||||||||||||
(in millions) | For the Six Months Ended June 30, 2014 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 32 | $ | — | $ | 32 | |||||||||||||||
Cost of sales | — | — | — | ||||||||||||||||||
Marketing, administration and research costs | (1 | ) | — | (1 | ) | ||||||||||||||||
Operating income | 31 | — | 31 | ||||||||||||||||||
Interest expense, net | (16 | ) | 1 | (15 | ) | ||||||||||||||||
Earnings before income taxes | 15 | 1 | 16 | ||||||||||||||||||
Provision for income taxes | (2 | ) | — | (2 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 13 | $ | 1 | $ | 14 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (15 | ) | $ | 2 | $ | (13 | ) | |||||||||||||
Recognized losses | (40 | ) | 5 | (35 | ) | ||||||||||||||||
Net impact on equity | $ | (55 | ) | $ | 7 | $ | (48 | ) | |||||||||||||
Currency translation adjustments | $ | 36 | $ | (7 | ) | $ | 29 | ||||||||||||||
(in millions) | For the Six Months Ended June 30, 2013 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 125 | $ | — | $ | 125 | |||||||||||||||
Cost of sales | 6 | — | 6 | ||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||
Operating income | 131 | — | 131 | ||||||||||||||||||
Interest expense, net | (22 | ) | 2 | (20 | ) | ||||||||||||||||
Earnings before income taxes | 109 | 2 | 111 | ||||||||||||||||||
Provision for income taxes | (14 | ) | 1 | (13 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 95 | $ | 3 | $ | 98 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (109 | ) | $ | 14 | $ | (95 | ) | |||||||||||||
Recognized gains | 179 | (23 | ) | 156 | |||||||||||||||||
Net impact on equity | $ | 70 | $ | (9 | ) | $ | 61 | ||||||||||||||
Currency translation adjustments | $ | 16 | $ | (1 | ) | $ | 15 | ||||||||||||||
(in millions) | For the Three Months Ended June 30, 2014 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 17 | $ | — | $ | 17 | |||||||||||||||
Cost of sales | — | — | — | ||||||||||||||||||
Marketing, administration and research costs | (1 | ) | — | (1 | ) | ||||||||||||||||
Operating income | 16 | — | 16 | ||||||||||||||||||
Interest expense, net | (9 | ) | 3 | (6 | ) | ||||||||||||||||
Earnings before income taxes | 7 | 3 | 10 | ||||||||||||||||||
Provision for income taxes | (1 | ) | — | (1 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 6 | $ | 3 | $ | 9 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (7 | ) | $ | 1 | $ | (6 | ) | |||||||||||||
Recognized losses | (13 | ) | 2 | (11 | ) | ||||||||||||||||
Net impact on equity | $ | (20 | ) | $ | 3 | $ | (17 | ) | |||||||||||||
Currency translation adjustments | $ | 11 | $ | 4 | $ | 15 | |||||||||||||||
(in millions) | For the Three Months Ended June 30, 2013 | ||||||||||||||||||||
Gain (Loss) | Cash Flow | Net | Other | Income | Total | ||||||||||||||||
Hedges | Investment | Derivatives | Taxes | ||||||||||||||||||
Hedges | |||||||||||||||||||||
Statement of Earnings: | |||||||||||||||||||||
Net revenues | $ | 84 | $ | — | $ | 84 | |||||||||||||||
Cost of sales | 3 | — | 3 | ||||||||||||||||||
Marketing, administration and research costs | — | — | — | ||||||||||||||||||
Operating income | 87 | — | 87 | ||||||||||||||||||
Interest expense, net | (13 | ) | 2 | (11 | ) | ||||||||||||||||
Earnings before income taxes | 74 | 2 | 76 | ||||||||||||||||||
Provision for income taxes | (10 | ) | 1 | (9 | ) | ||||||||||||||||
Net earnings attributable to PMI | $ | 64 | $ | 3 | $ | 67 | |||||||||||||||
Other Comprehensive Earnings/(Losses): | |||||||||||||||||||||
Gains transferred to earnings | $ | (74 | ) | $ | 10 | $ | (64 | ) | |||||||||||||
Recognized gains | 70 | (10 | ) | 60 | |||||||||||||||||
Net impact on equity | $ | (4 | ) | $ | — | $ | (4 | ) | |||||||||||||
Currency translation adjustments | $ | 13 | $ | (1 | ) | $ | 12 | ||||||||||||||
Pre-Tax Effect of Foreign Exchange Contracts Designated as Cash Flow Hedging Instruments | ' | ||||||||||||||||||||
For the six months and three months ended June 30, 2014 and 2013, foreign exchange contracts that were designated as cash flow hedging instruments impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||
(pre-tax, in millions) | For the Six Months Ended June 30, | ||||||||||||||||||||
Derivatives in | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Cash Flow | Classification of Gain/(Loss) | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Reclassified from Other | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | Comprehensive Earnings/(Losses) into Earnings | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | (40 | ) | $ | 179 | ||||||||||||||||
Net revenues | $ | 32 | $ | 125 | |||||||||||||||||
Cost of sales | — | 6 | |||||||||||||||||||
Marketing, administration | (1 | ) | — | ||||||||||||||||||
and research costs | |||||||||||||||||||||
Interest expense, net | (16 | ) | (22 | ) | |||||||||||||||||
Total | $ | 15 | $ | 109 | $ | (40 | ) | $ | 179 | ||||||||||||
(pre-tax, in millions) | For the Three Months Ended June 30, | ||||||||||||||||||||
Derivatives in | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Cash Flow | Classification of Gain/(Loss) | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Reclassified from Other | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | Comprehensive Earnings/(Losses) into Earnings | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | (13 | ) | $ | 70 | ||||||||||||||||
Net revenues | $ | 17 | $ | 84 | |||||||||||||||||
Cost of sales | — | 3 | |||||||||||||||||||
Marketing, administration | (1 | ) | — | ||||||||||||||||||
and research costs | |||||||||||||||||||||
Interest expense, net | (9 | ) | (13 | ) | |||||||||||||||||
Total | $ | 7 | $ | 74 | $ | (13 | ) | $ | 70 | ||||||||||||
Pre-Tax Effect of Foreign Exchange Contracts Designated as Net Investment Hedging Instruments | ' | ||||||||||||||||||||
For the six months and three months ended June 30, 2014 and 2013, foreign exchange contracts that were designated as net investment hedging instruments impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: | |||||||||||||||||||||
(pre-tax, in millions) | For the Six Months Ended June 30, | ||||||||||||||||||||
Derivatives in Net | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Investment | Classification of | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Gain/(Loss) Reclassified | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | from Other Comprehensive | ||||||||||||||||||||
Earnings/(Losses) into Earnings | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | 36 | $ | 16 | |||||||||||||||||
Interest expense, net | $ | — | $ | — | |||||||||||||||||
(pre-tax, in millions) | For the Three Months Ended June 30, | ||||||||||||||||||||
Derivatives in Net | Statement of Earnings | Amount of Gain/(Loss) | Amount of Gain/(Loss) | ||||||||||||||||||
Investment | Classification of | Reclassified from Other | Recognized in Other | ||||||||||||||||||
Hedging | Gain/(Loss) Reclassified | Comprehensive Earnings/(Losses) into Earnings | Comprehensive Earnings/(Losses) on Derivatives | ||||||||||||||||||
Relationship | from Other Comprehensive | ||||||||||||||||||||
Earnings/(Losses) into Earnings | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | 11 | $ | 13 | |||||||||||||||||
Interest expense, net | $ | — | $ | — | |||||||||||||||||
Pre-Tax Effect of Foreign Exchange Contracts Not Designated as Hedging Instruments | ' | ||||||||||||||||||||
As a result, for the six months and three months ended June 30, 2014 and 2013, these items impacted the condensed consolidated statements of earnings as follows: | |||||||||||||||||||||
(pre-tax, in millions) | For the Three Months Ended June 30, | ||||||||||||||||||||
Derivatives not Designated | Statement of Earnings | Amount of Gain/(Loss) | |||||||||||||||||||
as Hedging Instruments | Classification of | Recognized in Earnings | |||||||||||||||||||
Gain/(Loss) | |||||||||||||||||||||
For the Six Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||
Interest expense, net | $ | 1 | $ | 2 | $ | 3 | $ | 2 | |||||||||||||
Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes | ' | ||||||||||||||||||||
Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: | |||||||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain at beginning of period | $ | 63 | $ | 92 | $ | 32 | $ | 157 | |||||||||||||
Derivative (gains)/losses transferred to earnings | (13 | ) | (95 | ) | (6 | ) | (64 | ) | |||||||||||||
Change in fair value | (35 | ) | 156 | (11 | ) | 60 | |||||||||||||||
Gain as of June 30, | $ | 15 | $ | 153 | $ | 15 | $ | 153 | |||||||||||||
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interest (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Temporary Equity Disclosure [Abstract] | ' | |||
Movement in Redeemable Noncontrolling Interest | ' | |||
The redeemable noncontrolling interest balance at June 30, 2013 was $1,296 million. The movement in redeemable noncontrolling interest for the six months ended June 30, 2013 was as follows: | ||||
(in millions) | ||||
Redeemable noncontrolling interest at December 31, 2012 | $ | 1,301 | ||
Share of net earnings | 67 | |||
Dividend payments | (48 | ) | ||
Currency translation losses | (24 | ) | ||
Redeemable noncontrolling interest at June 30, 2013 | $ | 1,296 | ||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Calculation of Basic and Diluted EPS | ' | ||||||||||||||||
Basic and diluted earnings per share (“EPS”) were calculated using the following: | |||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net earnings attributable to PMI | $ | 3,726 | $ | 4,249 | $ | 1,851 | $ | 2,124 | |||||||||
Less distributed and undistributed earnings attributable to share-based payment awards | 17 | 23 | 9 | 11 | |||||||||||||
Net earnings for basic and diluted EPS | $ | 3,709 | $ | 4,226 | $ | 1,842 | $ | 2,113 | |||||||||
Weighted-average shares for basic and diluted EPS | 1,577 | 1,639 | 1,571 | 1,631 | |||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Data | ' | ||||||||||||||||
Segment data were as follows: | |||||||||||||||||
(in millions) | For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net revenues: | |||||||||||||||||
European Union | $ | 14,448 | $ | 13,768 | $ | 7,829 | $ | 7,245 | |||||||||
Eastern Europe, Middle East & Africa | 10,236 | 9,800 | 5,674 | 5,377 | |||||||||||||
Asia | 9,572 | 10,632 | 5,097 | 5,381 | |||||||||||||
Latin America & Canada | 4,574 | 4,810 | 2,451 | 2,480 | |||||||||||||
Net revenues | $ | 38,830 | $ | 39,010 | $ | 21,051 | $ | 20,483 | |||||||||
Earnings before income taxes: | |||||||||||||||||
Operating companies income: | |||||||||||||||||
European Union | $ | 1,689 | $ | 2,020 | $ | 711 | $ | 1,082 | |||||||||
Eastern Europe, Middle East & Africa | 2,014 | 1,880 | 1,087 | 945 | |||||||||||||
Asia | 1,815 | 2,470 | 900 | 1,128 | |||||||||||||
Latin America & Canada | 467 | 509 | 265 | 255 | |||||||||||||
Amortization of intangibles | (44 | ) | (48 | ) | (22 | ) | (24 | ) | |||||||||
General corporate expenses | (80 | ) | (112 | ) | (40 | ) | (54 | ) | |||||||||
Less: | |||||||||||||||||
Equity (income)/loss in unconsolidated subsidiaries, net | (36 | ) | 9 | (27 | ) | 5 | |||||||||||
Operating income | 5,825 | 6,728 | 2,874 | 3,337 | |||||||||||||
Interest expense, net | (522 | ) | (482 | ) | (254 | ) | (246 | ) | |||||||||
Earnings before income taxes | $ | 5,303 | $ | 6,246 | $ | 2,620 | $ | 3,091 | |||||||||
Contingencies_Tables
Contingencies (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 July 30, 2014, August 1, 2013 and August 1, 2012: | |||||||||
Type of Case | Number of | Number of Cases Pending as of | Number of Cases Pending as of | ||||||
Cases Pending as of July 30, 2014 | 1-Aug-13 | 1-Aug-12 | |||||||
Individual Smoking and Health Cases | 63 | 63 | 74 | ||||||
Smoking and Health Class Actions | 11 | 11 | 10 | ||||||
Health Care Cost Recovery Actions | 15 | 15 | 14 | ||||||
Lights Class Actions | 1 | 1 | 2 | ||||||
Individual Lights Cases | 2 | 1 | 7 | ||||||
Public Civil Actions | 2 | 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 $5,800) 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 $44,800). 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 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 $450) 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. |
Indebtedness_Tables
Indebtedness (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Debt Disclosure [Abstract] | ' | |||||||||
Long-Term Debt | ' | |||||||||
At June 30, 2014 and December 31, 2013, PMI’s long-term debt consisted of the following: | ||||||||||
(in millions) | June 30, 2014 | December 31, 2013 | ||||||||
U.S. dollar notes, 0.277% to 6.375% (average interest rate 3.878%), due through 2043 | $ | 15,259 | $ | 16,500 | ||||||
Foreign currency obligations: | ||||||||||
Euro notes, 1.750% to 5.875% (average interest rate 3.104%), due through 2033 | 10,253 | 7,303 | ||||||||
Swiss franc notes, 0.750% to 2.000% (average interest rate 1.217%), due through 2024 | 1,871 | 1,289 | ||||||||
Other (average interest rate 3.644%), due through 2024 | 185 | 186 | ||||||||
27,568 | 25,278 | |||||||||
Less current portion of long-term debt | 407 | 1,255 | ||||||||
$ | 27,161 | $ | 24,023 | |||||||
Debt Issuances During the Current Period | ' | |||||||||
PMI's debt issuances in the first six months of 2014 were as follows: | ||||||||||
(in millions) | ||||||||||
Type | Face Value (d) | Interest Rate | Issuance | Maturity | ||||||
EURO notes | (a) | €750 (approximately $1,029) | 1.875 | % | Mar-14 | Mar-21 | ||||
EURO notes | (a) | €1,000 (approximately $1,372) | 2.875 | % | Mar-14 | Mar-26 | ||||
EURO notes | (b) | €500 (approximately $697) | 2.875 | % | May-14 | May-29 | ||||
Swiss franc notes | (c) | CHF275 (approximately $311) | 0.75 | % | May-14 | Dec-19 | ||||
Swiss franc notes | (b) | CHF250 (approximately $283) | 1.625 | % | May-14 | May-24 | ||||
(a) Interest on these notes is payable annually in arrears beginning in March 2015. | ||||||||||
(b) Interest on these notes is payable annually in arrears beginning in May 2015. | ||||||||||
(c) Interest on these notes is payable annually in arrears beginning in December 2014. | ||||||||||
(d) U.S. dollar equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. | ||||||||||
Schedule of Committed Credit Facilities | ' | |||||||||
At June 30, 2014, PMI's total committed credit facilities were as follows: | ||||||||||
(in billions) | ||||||||||
Type | Committed | |||||||||
Credit | ||||||||||
Facilities | ||||||||||
364-day revolving credit, expiring February 10, 2015 | $ | 2 | ||||||||
Multi-year revolving credit, expiring February 28, 2019 | 2.5 | |||||||||
Multi-year revolving credit, expiring October 25, 2016 | 3.5 | |||||||||
Total facilities | $ | 8 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Aggregate Fair Values of Derivative Financial Instruments and Debt | ' | ||||||||||||||||
The aggregate fair values of PMI’s derivative financial instruments and debt as of June 30, 2014, were as follows: | |||||||||||||||||
(in millions) | Fair Value | Quoted Prices | Significant | Significant | |||||||||||||
at | in Active | Other | Unobservable | ||||||||||||||
June 30, | Markets for | Observable | Inputs | ||||||||||||||
2014 | Identical | Inputs | (Level 3) | ||||||||||||||
Assets/Liabilities | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange contracts | $ | 90 | $ | — | $ | 90 | $ | — | |||||||||
Total assets | $ | 90 | $ | — | $ | 90 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Debt | $ | 29,444 | $ | 29,255 | $ | 189 | $ | — | |||||||||
Foreign exchange contracts | 114 | — | 114 | — | |||||||||||||
Total liabilities | $ | 29,558 | $ | 29,255 | $ | 303 | $ | — | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Losses (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Components of Accumulated Other Comprehensive Earnings (Losses), Net of Taxes | ' | ||||||||||||
PMI’s accumulated other comprehensive losses, net of taxes, consisted of the following: | |||||||||||||
(in millions) | At June 30, 2014 | At December 31, 2013 | At June 30, 2013 | ||||||||||
Currency translation adjustments | $ | (2,323 | ) | $ | (2,207 | ) | $ | (1,021 | ) | ||||
Pension and other benefits | (2,006 | ) | (2,046 | ) | (3,247 | ) | |||||||
Derivatives accounted for as hedges | 15 | 63 | 153 | ||||||||||
Total accumulated other comprehensive losses | $ | (4,314 | ) | $ | (4,190 | ) | $ | (4,115 | ) |
Balance_Sheet_Offsetting_Table
Balance Sheet Offsetting (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Offsetting [Abstract] | ' | ||||||||||||||||||
Offsetting Assets and Liabilities | ' | ||||||||||||||||||
The effects of these foreign exchange contract assets and liabilities on PMI's condensed consolidated balance sheets were as follows: | |||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Condensed Consolidated Balance Sheet | Net Amounts Presented in the Condensed Consolidated Balance Sheet | Gross Amounts Not Offset in the | |||||||||||||||
Condensed Consolidated | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||
Financial Instruments | Cash Collateral Received/Pledged | ||||||||||||||||||
Net Amount | |||||||||||||||||||
At June 30, 2014 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 90 | $ | — | $ | 90 | $ | (21 | ) | $ | (56 | ) | $ | 13 | |||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 114 | $ | — | $ | 114 | $ | (21 | ) | $ | (89 | ) | $ | 4 | |||||
At December 31, 2013 | |||||||||||||||||||
Assets | |||||||||||||||||||
Foreign exchange contracts | $ | 153 | $ | — | $ | 153 | $ | (52 | ) | $ | (79 | ) | $ | 22 | |||||
Liabilities | |||||||||||||||||||
Foreign exchange contracts | $ | 116 | $ | — | $ | 116 | $ | (52 | ) | $ | (47 | ) | $ | 17 | |||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Subsidiaries (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||
Earnings and Balance Sheet Activities with Unconsolidated Subsidiaries | ' | |||||||
PMI’s earnings activity from unconsolidated subsidiaries was as follows: | ||||||||
(in millions) | For the Six Months Ended June 30, 2014 | For the Three Months Ended June 30, 2014 | ||||||
Net revenues | $ | 2,606 | $ | 1,420 | ||||
PMI’s balance sheet activity related to unconsolidated subsidiaries was as follows: | ||||||||
(in millions) | At June 30, 2014 | At December 31, 2013 | ||||||
Receivables | $ | 584 | $ | 470 | ||||
Notes receivable | $ | 102 | $ | 100 | ||||
Other liabilities | $ | 90 | $ | 86 | ||||
Asset_Impairment_and_Exit_Cost2
Asset Impairment and Exit Costs (Schedule of Asset Impairment and Exit Costs) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Total separation programs | $360 | $0 | $383 | $0 |
Total asset impairment charges | 129 | 0 | 129 | 0 |
Asset impairment and exit costs | 489 | 5 | 512 | 8 |
Contract Termination [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Total contract termination charges | 0 | 5 | 0 | 8 |
European Union [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Total separation programs | 359 | 0 | 359 | 0 |
Total asset impairment charges | 129 | 0 | 129 | 0 |
Asia [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Total separation programs | 1 | 0 | 24 | 0 |
Asia [Member] | Contract Termination [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Total contract termination charges | $0 | $5 | $0 | $8 |
Asset_Impairment_and_Exit_Cost3
Asset Impairment and Exit Costs (Movement In The Exit Cost Liabilities) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Liability beginning balance | ' | ' | $308 | ' |
Charges | ' | ' | 383 | ' |
Cash spent | -30 | -7 | -230 | -12 |
Currency/other | ' | ' | -22 | ' |
Liability ending balance | $439 | ' | $439 | ' |
Asset_Impairment_and_Exit_Cost4
Asset Impairment and Exit Costs (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Cash payments related to exit costs | $30 | $7 | $230 | $12 |
Effect on Future Cash Flows, Amount | ' | ' | 439 | ' |
Asset impairment and exit costs | 489 | 5 | 512 | 8 |
Separation costs | 360 | 0 | 383 | 0 |
European Union [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Separation costs | 359 | 0 | 359 | 0 |
Factory Closing [Member] | Australia [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Separation costs | 1 | ' | 24 | ' |
Factory Closing [Member] | Affiliated Entity [Member] | European Union [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Asset impairment and exit costs | 488 | ' | 488 | ' |
Contract Termination [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Exit costs | $0 | $5 | $0 | $8 |
Stock_Plans_Details
Stock Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Minimum Retirement Age | ' | ' | '58 years | ' |
Restricted Stock and Deferred Stock Awards [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Number of shares of stock awards granted during period | ' | ' | 2,400,000 | 2,800,000 |
Weighted-average grant date fair value of stock awards, per share | ' | ' | $77.74 | $88.43 |
Compensation expense for stock awards | $47 | $52 | $113 | $124 |
Unrecognized compensation cost related to non-vested stock awards | 288 | ' | 288 | ' |
Stock awards vested during period | ' | ' | 3,400,000 | ' |
Restricted Stock and Deferred Stock Awards [Member] | Grant Date Fair Value [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Fair value of vested stock awards | ' | ' | 205 | ' |
Restricted Stock and Deferred Stock Awards [Member] | Total Fair Value [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Fair value of vested stock awards | ' | ' | $270 | ' |
Restricted Stock and Deferred Stock Awards [Member] | Minimum [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Expected period for recognition of unamortized compensation expense, in years | ' | ' | '3 years | ' |
2012 Performance Incentive Plan [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Estimated common stock to be awarded under a stock benefit plan, maximum limit | 30,000,000 | ' | 30,000,000 | ' |
Shares available for grant under the plan | 24,799,330 | ' | 24,799,330 | ' |
Non Employee Directors Plan [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Estimated common stock to be awarded under a stock benefit plan, maximum limit | 1,000,000 | ' | 1,000,000 | ' |
Shares available for grant under the plan | 715,904 | ' | 715,904 | ' |
Percentage of voting shares that PMI may own, used in determining non-employee director status | ' | ' | 50.00% | ' |
Benefit_Plans_Components_of_Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
U.S. Plans - Pension [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $2 | $2 | $3 | $4 |
Interest cost | 4 | 4 | 8 | 8 |
Expected return on plan assets | -4 | -4 | -8 | -8 |
Amortization: | ' | ' | ' | ' |
Net loss | 1 | 3 | 3 | 6 |
Prior service cost | 0 | 1 | 0 | 1 |
Net transition obligation | 0 | 0 | 0 | 0 |
Net periodic pension cost | 3 | 6 | 6 | 11 |
Non-U.S. Plans - Pension [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 52 | 62 | 104 | 127 |
Interest cost | 52 | 41 | 103 | 84 |
Expected return on plan assets | -89 | -86 | -177 | -173 |
Amortization: | ' | ' | ' | ' |
Net loss | 29 | 51 | 57 | 102 |
Prior service cost | 2 | 3 | 4 | 5 |
Net transition obligation | 0 | 1 | 0 | 1 |
Net periodic pension cost | $46 | $72 | $91 | $146 |
Benefit_Plans_Narrative_Detail
Benefit Plans (Narrative) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Employer Contributions | $82 | $56 |
Anticipated additional employer contributions during the remainder of the current fiscal year | $53 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, net (Goodwill and Other Intangible Assets, by Segment) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Other Intangible Assets, net [Line Items] | ' | ' |
Goodwill | $9,085 | $8,893 |
Other Intangible Assets, net | 3,209 | 3,193 |
European Union [Member] | ' | ' |
Goodwill and Other Intangible Assets, net [Line Items] | ' | ' |
Goodwill | 1,609 | 1,472 |
Other Intangible Assets, net | 620 | 604 |
Eastern Europe, Middle East & Africa [Member] | ' | ' |
Goodwill and Other Intangible Assets, net [Line Items] | ' | ' |
Goodwill | 584 | 617 |
Other Intangible Assets, net | 225 | 228 |
Asia [Member] | ' | ' |
Goodwill and Other Intangible Assets, net [Line Items] | ' | ' |
Goodwill | 4,039 | 3,960 |
Other Intangible Assets, net | 1,260 | 1,251 |
Latin America & Canada [Member] | ' | ' |
Goodwill and Other Intangible Assets, net [Line Items] | ' | ' |
Goodwill | 2,853 | 2,844 |
Other Intangible Assets, net | $1,104 | $1,110 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets, net (Movement In Goodwill) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Balances, December 31, 2013 | $8,893 |
Changes due to: | ' |
Acquisitions | 153 |
Currency | 39 |
Balances, June 30, 2014 | 9,085 |
European Union [Member] | ' |
Goodwill [Roll Forward] | ' |
Balances, December 31, 2013 | 1,472 |
Changes due to: | ' |
Acquisitions | 153 |
Currency | -16 |
Balances, June 30, 2014 | 1,609 |
Eastern Europe, Middle East & Africa [Member] | ' |
Goodwill [Roll Forward] | ' |
Balances, December 31, 2013 | 617 |
Changes due to: | ' |
Acquisitions | 0 |
Currency | -33 |
Balances, June 30, 2014 | 584 |
Asia [Member] | ' |
Goodwill [Roll Forward] | ' |
Balances, December 31, 2013 | 3,960 |
Changes due to: | ' |
Acquisitions | 0 |
Currency | 79 |
Balances, June 30, 2014 | 4,039 |
Latin America & Canada [Member] | ' |
Goodwill [Roll Forward] | ' |
Balances, December 31, 2013 | 2,844 |
Changes due to: | ' |
Acquisitions | 0 |
Currency | 9 |
Balances, June 30, 2014 | $2,853 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Non-amortizable intangible assets, gross carrying amount | $1,818 | $1,798 |
Amortizable intangible assets, gross carrying amount | 1,983 | 1,940 |
Total other intangible assets, gross carrying amount | 3,801 | 3,738 |
Accumulated Amortization | $592 | $545 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets, net (Range of Useful Lives and Weighted-Average Remaining Useful Lives of Amortizable Intangible Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
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] | |||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amount | $1,983 | $1,940 | $1,595 | ' | ' | $162 | ' | ' | $134 | ' | ' | $92 | ' | ' |
Initial Estimated Useful Lives | ' | ' | ' | '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 | ' | ' | '13 years | ' | ' |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets, net (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Intangible assets, pre-tax amortization expense | $22 | ' | $24 | $44 | $48 |
Estimated Amortization Expense, Year One, assuming no additional transactions occur that require the amortization of intangible assets | 88 | ' | ' | 88 | ' |
Estimated Amortization Expense, Year Two, assuming no additional transactions occur that require the amortization of intangible assets | 88 | ' | ' | 88 | ' |
Estimated Amortization Expense, Year Three, assuming no additional transactions occur that require the amortization of intangible assets | 88 | ' | ' | 88 | ' |
Estimated Amortization Expense, Year Four, assuming no additional transactions occur that require the amortization of intangible assets | 88 | ' | ' | 88 | ' |
Estimated Amortization Expense, Year Five, assuming no additional transactions occur that require the amortization of intangible assets | 88 | ' | ' | 88 | ' |
Goodwill, Impairment Loss | ' | $0 | ' | ' | ' |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Value of Foreign Exchange Contracts) (Details) (Foreign Exchange Contract [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | $16,400,000,000 | ' |
Derivative asset fair value | 90,000,000 | 153,000,000 |
Derivative liability fair value | 114,000,000 | 116,000,000 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset fair value | 66,000,000 | 111,000,000 |
Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability fair value | 6,000,000 | 44,000,000 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset fair value | 13,000,000 | 0 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability fair value | 44,000,000 | 46,000,000 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 10,000,000,000 | ' |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset fair value | 11,000,000 | 42,000,000 |
Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability fair value | 64,000,000 | 12,000,000 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability fair value | 0 | 14,000,000 |
Cash Flow Hedging [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 3,800,000,000 | ' |
Net Investment Hedging [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | $2,600,000,000 | ' |
Financial_Instruments_Hedging_
Financial Instruments (Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains transferred to earnings | ($6) | ($64) | ($13) | ($95) |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | -11 | 60 | -35 | 156 |
Foreign Exchange Contract [Member] | Net revenues [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 17 | 84 | 32 | 125 |
Foreign Exchange Contract [Member] | Cost of sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 3 | 0 | 6 |
Foreign Exchange Contract [Member] | Marketing, administration and research costs [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -1 | 0 | -1 | 0 |
Foreign Exchange Contract [Member] | Operating income [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 16 | 87 | 31 | 131 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -6 | -11 | -15 | -20 |
Foreign Exchange Contract [Member] | Earnings before income taxes [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 10 | 76 | 16 | 111 |
Foreign Exchange Contract [Member] | Provision for income taxes [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -1 | -9 | -2 | -13 |
Foreign Exchange Contract [Member] | Net Earnings Attributable to Parent [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 9 | 67 | 14 | 98 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Net revenues [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 17 | 84 | 32 | 125 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Cost of sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 3 | 0 | 6 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Marketing, administration and research costs [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -1 | 0 | -1 | 0 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Operating income [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 16 | 87 | 31 | 131 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Interest expense, net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -9 | -13 | -16 | -22 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Earnings before income taxes [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 7 | 74 | 15 | 109 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Provision for income taxes [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -1 | -10 | -2 | -14 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Net Earnings Attributable to Parent [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 6 | 64 | 13 | 95 |
Foreign Exchange Contract [Member] | Net Investment Hedges [Member] | Interest expense, net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains transferred to earnings | 0 | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Net revenues [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 0 | 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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 3 | 2 | 1 | 2 |
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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 3 | 2 | 1 | 2 |
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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 1 | 0 | 1 |
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) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 3 | 3 | 1 | 3 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains transferred to earnings | -6 | -64 | -13 | -95 |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | -11 | 60 | -35 | 156 |
Net impact on equity | -17 | -4 | -48 | 61 |
Currency translation adjustments | 15 | 12 | 29 | 15 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Income Tax Expense Benefit [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains transferred to earnings | ' | ' | 2 | 14 |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | ' | ' | 5 | -23 |
Net impact on equity | ' | ' | 7 | -9 |
Currency translation adjustments | ' | ' | -7 | -1 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains transferred to earnings | -7 | -74 | -15 | -109 |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | -13 | 70 | -40 | 179 |
Net impact on equity | -20 | -4 | -55 | 70 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Net Investment Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Currency translation adjustments | 11 | 13 | 36 | 16 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Income Tax Expense Benefit [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gains transferred to earnings | 1 | 10 | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | 2 | -10 | ' | ' |
Net impact on equity | 3 | 0 | ' | ' |
Currency translation adjustments | $4 | ($1) | ' | ' |
Financial_Instruments_PreTax_E
Financial Instruments (Pre-Tax Effect of Foreign Exchange Contracts Designated as Cash Flow Hedging Instruments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | ($11) | $60 | ($35) | $156 |
Maturity of Foreign Currency Derivatives | ' | ' | 31-May-24 | ' |
Foreign Exchange Contract [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative, Higher Remaining Maturity Range | ' | ' | '18 months | ' |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | -11 | 60 | -35 | 156 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | -13 | 70 | -40 | 179 |
Foreign Exchange Contract [Member] | Net revenues [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 17 | 84 | 32 | 125 |
Foreign Exchange Contract [Member] | Net revenues [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 17 | 84 | 32 | 125 |
Foreign Exchange Contract [Member] | Cost of sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 3 | 0 | 6 |
Foreign Exchange Contract [Member] | Cost of sales [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 3 | 0 | 6 |
Foreign Exchange Contract [Member] | Marketing, administration and research costs [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -1 | 0 | -1 | 0 |
Foreign Exchange Contract [Member] | Marketing, administration and research costs [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -1 | 0 | -1 | 0 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -6 | -11 | -15 | -20 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -9 | -13 | -16 | -22 |
Foreign Exchange Contract [Member] | Earnings before income taxes [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 10 | 76 | 16 | 111 |
Foreign Exchange Contract [Member] | Earnings before income taxes [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | $7 | $74 | $15 | $109 |
Financial_Instruments_PreTax_E1
Financial Instruments (Pre-Tax Effect of Foreign Exchange Contracts Designated as Net Investment Hedging Instruments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses), net of income taxes | ($77) | ($488) | ($114) | ($722) |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -6 | -64 | -13 | -95 |
Foreign Exchange Contract [Member] | Net Investment Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses), net of income taxes | 76 | -55 | 93 | 36 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | 15 | 12 | 29 | 15 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -6 | -64 | -13 | -95 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Net Investment Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | 11 | 13 | 36 | 16 |
Foreign Exchange Contract [Member] | Interest expense, net [Member] | Net Investment Hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | $0 | $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 $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $142 | $70 | $94 | ($20) |
Interest expense, net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | -6 | -11 | -15 | -20 |
Interest expense, net [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | $3 | $2 | $1 | $2 |
Financial_Instruments_Hedging_1
Financial Instruments (Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses) Net of Income Taxes) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Gain at beginning of period | ' | ' | $63 | ' |
Gains transferred to earnings | -6 | -64 | -13 | -95 |
Change in fair value | -11 | 60 | -35 | 156 |
Gain as of June 30, | 15 | 153 | 15 | 153 |
Foreign Exchange Contract [Member] | ' | ' | ' | ' |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Derivative Instruments, gains to be reclassified to earnings. | 19 | ' | 19 | ' |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Gain at beginning of period | 32 | 157 | 63 | 92 |
Gains transferred to earnings | -6 | -64 | -13 | -95 |
Change in fair value | -11 | 60 | -35 | 156 |
Gain as of June 30, | $15 | $153 | $15 | $153 |
Redeemable_Noncontrolling_Inte2
Redeemable Noncontrolling Interest (Narrative) (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Feb. 25, 2010 | Feb. 25, 2010 |
Fortune Tobacco Corporation [Member] | Fortune Tobacco Corporation [Member] | |||
Agreed Upon Value to Sell Between February 2015 And February 2018 [Member] | ||||
Business Acquisitions [Line Items] | ' | ' | ' | ' |
Business combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | ' | ' | $1,170,000,000 | ' |
Temporary Equity, Redemption Value | ' | ' | ' | 1,170,000,000 |
Redeemable noncontrolling interest | $1,296,000,000 | $1,301,000,000 | ' | ' |
Redeemable_Noncontrolling_Inte3
Redeemable Noncontrolling Interest (Movement in Redeemable Noncontrolling Interest after Business Combination) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
Increase (Decrease) in Temporary Equity [Roll Forward] | ' |
Redeemable noncontrolling interest at beginning of period | $1,301 |
Share of net earnings | 67 |
Redeemable noncontrolling interest at end of period | 1,296 |
Redeemable Noncontrolling Interest [Member] | ' |
Increase (Decrease) in Temporary Equity [Roll Forward] | ' |
Dividend payments | -48 |
Currency translation losses | ($24) |
Earnings_Per_Share_Calculation
Earnings Per Share (Calculation of Basic and Diluted EPS) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net earnings attributable to PMI | $1,851 | $2,124 | $3,726 | $4,249 |
Less distributed and undistributed earnings attributable to share-based payment awards | 9 | 11 | 17 | 23 |
Net earnings for basic and diluted EPS | $1,842 | $2,113 | $3,709 | $4,226 |
Weighted-average shares for basic and diluted EPS | 1,571,000,000 | 1,631,000,000 | 1,577,000,000 | 1,639,000,000 |
Antidilutive stock options | 0 | 0 | 0 | 0 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenues | $21,051 | $20,483 | $38,830 | $39,010 |
Amortization of intangibles | -22 | -24 | -44 | -48 |
General corporate expenses | -40 | -54 | -80 | -112 |
Equity (income)/loss in unconsolidated subsidiaries, net | -27 | 5 | -36 | 9 |
Operating income | 2,874 | 3,337 | 5,825 | 6,728 |
Interest expense, net | -254 | -246 | -522 | -482 |
Earnings before income taxes | 2,620 | 3,091 | 5,303 | 6,246 |
European Union [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenues | 7,829 | 7,245 | 14,448 | 13,768 |
Operating companies income: | 711 | 1,082 | 1,689 | 2,020 |
Eastern Europe, Middle East & Africa [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenues | 5,674 | 5,377 | 10,236 | 9,800 |
Operating companies income: | 1,087 | 945 | 2,014 | 1,880 |
Asia [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenues | 5,097 | 5,381 | 9,572 | 10,632 |
Operating companies income: | 900 | 1,128 | 1,815 | 2,470 |
Latin America & Canada [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenues | 2,451 | 2,480 | 4,574 | 4,810 |
Operating companies income: | $265 | $255 | $467 | $509 |
Contingencies_TobaccoRelated_L
Contingencies (Tobacco-Related Litigation) (Details) (Subsequent Event [Member]) | 7 Months Ended | ||||||
Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | |
litigation_case | Final Resolution In Favor Of Company [Member] | Case Decided In Favor Of Plaintiff [Member] | Case Decided In Favor Of Plaintiff [Member] | Cases Remaining On Appeal [Member] | Individual Lights Cases Small Claims Court [Member] | Individual Lights Cases Small Claims Court [Member] | |
litigation_case | litigation_case | Final Resolution In Favor Of Company [Member] | Case Decided In Favor Of Plaintiff [Member] | Cases With Costs [Member] | Cases With Costs [Member] | ||
litigation_case | litigation_case | Italy [Member] | Italy [Member] | ||||
USD ($) | EUR (€) | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of judgements paid to date | 1 | ' | ' | ' | ' | ' | ' |
Payments for total judgments including costs | ' | ' | ' | ' | ' | $1,900 | € 1,400 |
Number of cases decided | ' | 422 | ' | 8 | ' | ' | ' |
Number of cases decided | ' | ' | 10 | ' | ' | ' | ' |
Cases brought against PM | ' | ' | ' | ' | 2 | ' | ' |
Contingencies_Number_of_Tobacc
Contingencies (Number of Tobacco Related Cases Pending Against Us and/or Our Subsidiaries or Indemnitees) (Details) | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 |
Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | Health Care Cost Recovery Actions [Member] | Health Care Cost Recovery Actions [Member] | Health Care Cost Recovery Actions [Member] | Lights Class Actions [Member] | Lights Class Actions [Member] | Lights Class Actions [Member] | Individual Lights Cases [Member] | Individual Lights Cases [Member] | Individual Lights Cases [Member] | Public Civil Actions [Member] | Public Civil Actions [Member] | Public Civil Actions [Member] | |
litigation_case | litigation_case | Subsequent Event [Member] | litigation_case | litigation_case | Subsequent Event [Member] | litigation_case | litigation_case | Subsequent Event [Member] | Israel [Member] | Israel [Member] | Israel [Member] | litigation_case | litigation_case | Subsequent Event [Member] | litigation_case | litigation_case | Subsequent Event [Member] | |
litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | Subsequent Event [Member] | litigation_case | litigation_case | |||||||||||
litigation_case | ||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cases brought against PM | 63 | 74 | 63 | 11 | 10 | 11 | 15 | 14 | 15 | 1 | 2 | 1 | 1 | 7 | 2 | 4 | 3 | 2 |
Contingencies_Verdicts_and_Pos
Contingencies (Verdicts and Post-Trial Developments) (Details) | 1 Months Ended | 1 Months Ended | 7 Months Ended | ||||||
Sep. 30, 2009 | Sep. 30, 2009 | Mar. 31, 2011 | Mar. 31, 2011 | Apr. 30, 2004 | Apr. 30, 2004 | Apr. 30, 2004 | Jul. 30, 2014 | Jul. 30, 2014 | |
Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Smoking And Health Class Actions [Member] | Award per smoker per year [Member] | Award per smoker per year [Member] | Cases With Verdicts And Post Trial Developments [Member] | Cases With Verdicts And Post Trial Developments [Member] | |
Bernhardt [Member] | Bernhardt [Member] | Bernhardt [Member] | Bernhardt [Member] | The Smoker Health Defense Association (ADESF) [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | Individual Smoking And Health Cases [Member] | Smoking And Health Class Actions [Member] | |
USD ($) | BRL | USD ($) | BRL | The Smoker Health Defense Association (ADESF) [Member] | The Smoker Health Defense Association (ADESF) [Member] | Brazil [Member] | Brazil [Member] | ||
USD ($) | BRL | Bernhardt [Member] | The Smoker Health Defense Association (ADESF) [Member] | ||||||
Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date | ' | ' | ' | ' | ' | ' | ' | 'September 2009 | 'February 2004 |
Verdict | ' | ' | ' | ' | ' | ' | ' | 'The Civil Court of Rio de Janeiro found for plaintiff and ordered Philip Morris Brasil to pay R$13,000 (approximately $5,800) in “moral damages.†| 'The Civil Court of São Paulo found defendants liable without hearing evidence. The court did not assess 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 $44,800). Philip Morris Brasil has appealed this decision. | 'In April 2004, the court clarified its ruling, awarding “moral damages†of R$1,000 (approximately $450) 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. |
Amount Loss Contingency, Actions Taken By Court, Arbitrator Or Mediator | $5,800 | 13,000 | ' | ' | ' | $450 | 1,000 | ' | ' |
Increased Amount, Loss Contingency, Actions Taken By Court, Arbitrator Or Mediator. | ' | ' | $44,800 | 100,000 | ' | ' | ' | ' | ' |
Smoking and health loss contingency interest rate | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Contingencies_Smoking_And_Heal
Contingencies (Smoking And Health Litigation) (Details) | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 |
Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Individual Smoking And Health Cases [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | Smoking And Health Class Actions [Member] | |
litigation_case | litigation_case | Subsequent Event [Member] | Argentina [Member] | Brazil [Member] | Canada [Member] | Chile [Member] | Costa Rica [Member] | Greece [Member] | Italy [Member] | Philippines [Member] | Scotland [Member] | litigation_case | litigation_case | Subsequent Event [Member] | Brazil [Member] | Canada [Member] | |
litigation_case | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | litigation_case | Subsequent Event [Member] | Subsequent Event [Member] | |||||
litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | litigation_case | |||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cases brought against PM | 63 | 74 | 63 | 24 | 23 | 2 | 6 | 2 | 1 | 3 | 1 | 1 | 11 | 10 | 11 | 2 | 9 |
Contingencies_Health_Care_Cost
Contingencies (Health Care Cost Recovery Litigation) (Details) (Health Care Cost Recovery Actions [Member], USD $) | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Jul. 30, 2014 | Apr. 14, 2014 | Jul. 30, 2014 | Jul. 30, 2014 |
In Millions, unless otherwise specified | litigation_case | litigation_case | Subsequent Event [Member] | Canada [Member] | Korea [Member] | Korea [Member] | Nigeria [Member] |
litigation_case | Subsequent Event [Member] | patients | Subsequent Event [Member] | Subsequent Event [Member] | |||
litigation_case | litigation_case | litigation_case | |||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cases brought against PM | 15 | 14 | 15 | 9 | ' | 1 | 5 |
Loss Contingency, Damages Sought, Value | ' | ' | ' | ' | $53.70 | ' | ' |
Loss Contingency Damages Sought Number of Patients | ' | ' | ' | ' | 3,484 | ' | ' |
Contingencies_Lights_Cases_Det
Contingencies (Lights Cases) (Details) | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 |
Individual Lights Cases [Member] | Individual Lights Cases [Member] | Individual Lights Cases [Member] | Israel [Member] | Israel [Member] | Israel [Member] | Chile [Member] | Italy [Member] | |
litigation_case | litigation_case | Subsequent Event [Member] | Lights Class Actions [Member] | Lights Class Actions [Member] | Lights Class Actions [Member] | Individual Lights Cases [Member] | Individual Lights Cases [Member] | |
litigation_case | litigation_case | litigation_case | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
litigation_case | litigation_case | litigation_case | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cases brought against PM | 1 | 7 | 2 | 1 | 2 | 1 | 1 | 1 |
Contingencies_Public_Civil_Act
Contingencies (Public Civil Actions) (Details) (Public Civil Actions [Member]) | Aug. 01, 2013 | Aug. 01, 2012 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 |
litigation_case | litigation_case | Subsequent Event [Member] | Argentina [Member] | Venezuela [Member] | |
litigation_case | Subsequent Event [Member] | Subsequent Event [Member] | |||
litigation_case | litigation_case | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Cases brought against PM | 4 | 3 | 2 | 1 | 1 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Impact on effective tax rate due to additional expense associated with the American Taxpayer Relief Act of 2012 | ' | ' | $17 | ' | ' |
Effective tax rate | 28.70% | 28.90% | ' | 28.80% | 29.20% |
United States [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Open Tax Year | ' | ' | ' | '2007 and onward | ' |
Indebtedness_Narrative_Details
Indebtedness (Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2014 |
364-day revolving credit, expiring February 10, 2015 [Member] | Multi-year revolving credit, expiring February 28, 2019 [Member] | Multi-year revolving credit, expiring March 31, 2015 [Member] | |||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Short-term borrowings, carrying value | $1,941,000,000 | $2,400,000,000 | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000,000 | ' | 2,000,000,000 | 2,500,000,000 | ' |
Line of Credit Facility, Initiation Date | ' | ' | ' | 28-Feb-14 | ' |
Credit Facilities No Longer Available | ' | ' | ' | ' | 2,500,000,000 |
Line of Credit Facility, Amount Outstanding | $0 | ' | ' | ' | ' |
Indebtedness_LongTerm_Debt_Det
Indebtedness (Long-Term Debt) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $27,568 | $25,278 |
Long-term Debt, Current | 407 | 1,255 |
Long-term Debt | 27,161 | 24,023 |
U.S. Dollar Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 15,259 | 16,500 |
Due through | '2043 | ' |
Interest rate, minimum | 0.28% | ' |
Interest rate, maximum | 6.38% | ' |
Interest rate, average | 3.88% | ' |
Euro Notes [Member] | Foreign Currency Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 10,253 | 7,303 |
Due through | '2033 | ' |
Interest rate, minimum | 1.75% | ' |
Interest rate, maximum | 5.88% | ' |
Interest rate, average | 3.10% | ' |
Swiss Franc Notes [Member] | Foreign Currency Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,871 | 1,289 |
Due through | '2024 | ' |
Interest rate, minimum | 0.75% | ' |
Interest rate, maximum | 2.00% | ' |
Interest rate, average | 1.22% | ' |
Other [Member] | Foreign Currency Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $185 | $186 |
Due through | '2024 | ' |
Interest rate, average | 3.64% | ' |
Indebtedness_Debt_Issuances_Du
Indebtedness (Debt Issuances During Current Period) (Details) (Foreign Currency Obligations [Member]) | 6 Months Ended | |||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
One Point Eight Seven Five Percent Euro Notes Due March 2021 [Member] | One Point Eight Seven Five Percent Euro Notes Due March 2021 [Member] | Two Point Eight Seven Five Percent Euro Note Due March 2026 [Member] | Two Point Eight Seven Five Percent Euro Note Due March 2026 [Member] | Two Point Eight Seven Five Percent Euro Note Due May 2029 [Member] | Two Point Eight Seven Five Percent Euro Note Due May 2029 [Member] | Point Seven Five Zero Percent Swiss Franc Note Due December 2019 [Member] | Point Seven Five Zero Percent Swiss Franc Note Due December 2019 [Member] | One Point Six Two Five Percent Swiss Franc Note Due May 2024 [Member] | One Point Six Two Five Percent Swiss Franc Note Due May 2024 [Member] | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | CHF | USD ($) | CHF | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Value | $1,029 | € 750 | $1,372 | € 1,000 | $697 | € 500 | $311 | 275 | $283 | 250 |
Interest Rate | 1.88% | 1.88% | 2.88% | 2.88% | 2.88% | 2.88% | 0.75% | 0.75% | 1.63% | 1.63% |
Issuance | 1-Mar-14 | 1-Mar-14 | 1-Mar-14 | 1-Mar-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 | 1-May-14 |
Maturity | 1-Mar-21 | 1-Mar-21 | 1-Mar-26 | 1-Mar-26 | 1-May-29 | 1-May-29 | 1-Dec-19 | 1-Dec-19 | 1-May-24 | 1-May-24 |
Indebtedness_Credit_Facilities
Indebtedness (Credit Facilities) (Details) (USD $) | Jun. 30, 2014 |
In Billions, unless otherwise specified | |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $8 |
364-day revolving credit, expiring February 10, 2015 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 2 |
Multi-year revolving credit, expiring February 28, 2019 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 2.5 |
Multi-year revolving credit, expiring October 25, 2016 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $3.50 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | ' |
Capital lease obligations, carrying value | $16 |
Debt excluding short-term borrowings and capital lease obligations, carrying value | $27,552 |
Fair_Value_Measurements_Aggreg
Fair Value Measurements (Aggregate Fair Value of Derivative Financial Instruments and Debt) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Fair Value [Member] | ' |
Assets: | ' |
Foreign exchange contracts | $90 |
Total assets | 90 |
Liabilities: | ' |
Debt | 29,444 |
Foreign exchange contracts | 114 |
Total liabilities | 29,558 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ' |
Assets: | ' |
Foreign exchange contracts | 0 |
Total assets | 0 |
Liabilities: | ' |
Debt | 29,255 |
Foreign exchange contracts | 0 |
Total liabilities | 29,255 |
Significant Other Observable Inputs (Level 2) [Member] | ' |
Assets: | ' |
Foreign exchange contracts | 90 |
Total assets | 90 |
Liabilities: | ' |
Debt | 189 |
Foreign exchange contracts | 114 |
Total liabilities | 303 |
Significant Unobservable Inputs (Level 3) [Member] | ' |
Assets: | ' |
Foreign exchange contracts | 0 |
Total assets | 0 |
Liabilities: | ' |
Debt | 0 |
Foreign exchange contracts | 0 |
Total liabilities | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Earnings (Losses), Net of Tax) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Currency translation adjustments | ($2,323) | ($2,207) | ($1,021) |
Pension and other benefits | -2,006 | -2,046 | -3,247 |
Derivatives accounted for as hedges | 15 | 63 | 153 |
Total accumulated other comprehensive losses | ($4,314) | ($4,190) | ($4,115) |
Balance_Sheet_Offsetting_Detai
Balance Sheet Offsetting (Details) (Foreign Exchange Contract [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contract [Member] | ' | ' |
Assets | ' | ' |
Gross Amounts Recognized | $90 | $153 |
Gross Amount Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheet | 90 | 153 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | -21 | -52 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received/Pledged | -56 | -79 |
Net Amount | 13 | 22 |
Liabilities | ' | ' |
Gross Amounts Recognized | 114 | 116 |
Gross Amount Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheet | 114 | 116 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | -21 | -52 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received/Pledged | -89 | -47 |
Net Amount | $4 | $17 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Subsidiaries - (Narrative) (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 12, 2013 | Dec. 31, 2013 | Dec. 12, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Equity Method Investments [Member] | Equity Method Investments [Member] | Equity Method Investments [Member] | Equity Method Investment Goodwill [Member] | AITA [Member] | AITA [Member] | AITA [Member] | STAEM [Member] | Societe Nationale des Tabacs et Allumettes SpA [Member] | Megapolis [Member] | Megapolis [Member] | Megapolis [Member] | Other Affiliates [Member] | Other Affiliates [Member] | Other Affiliates [Member] | Other Affiliates [Member] | |||
Minimum [Member] | Maximum [Member] | Joint Venture [Member] | Joint Venture [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in unconsolidated subsidiaries | $1,508 | $1,536 | ' | ' | ' | $1,264 | ' | ' | ' | ' | ' | ' | ' | ' | $40 | $42 | ' | ' |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | ' | ' | 1,417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Amortization Period | ' | ' | ' | '3 years | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Equity Method Investment, Dividends or Distributions | 45 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | 49.00% | 51.00% | 25.00% | 49.00% | ' | ' | 20.00% | ' | ' | 40.00% | 50.00% |
Purchase Price of Equity Method Investments | ' | ' | ' | ' | ' | ' | 625 | ' | ' | ' | ' | 760 | ' | ' | ' | ' | ' | ' |
Contingent Consideration Equity Method Investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' |
Contingent Consideration Measurement Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Investments In Unconsolidated Subsidiaries Notes Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 100 | ' | ' | ' | ' |
Equity Method Investments Discounted Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $86 | ' | ' | ' | ' | ' |
Investments_in_Unconsolidated_3
Investments in Unconsolidated Subsidiaries - (Balance sheet and earnings activity) (Details) (Eastern Europe Middle East And Africa [Member], Equity Method Investments [Member], USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Eastern Europe Middle East And Africa [Member] | Equity Method Investments [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Net revenues | $1,420 | $2,606 | ' |
Receivables | 584 | 584 | 470 |
Notes receivable | 102 | 102 | 100 |
Other liabilities | $90 | $90 | $86 |
Acquisitions_and_Other_Busines1
Acquisitions and Other Business Arrangements (Details) (USD $) | 6 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Jun. 30, 2013 |
Mexican tobacco business | Mexican tobacco business | Director [Member] | Nicocigs Limited [Member] | Grupo Carso [Member] | Grupo Carso [Member] | Grupo Carso [Member] | Grupo Carso [Member] | Grupo Carso [Member] | |||
Additional Paid-in Capital [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | |||||||
Mexican tobacco business | Mexican tobacco business | Mexican tobacco business | Mexican tobacco business | ||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, percentage of interest acquired | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Payment to acquire business | $103 | $0 | ' | ' | ' | $103 | ' | ' | ' | ' | ' |
Additional contingent payment, maximum | ' | ' | ' | ' | ' | 77 | ' | ' | ' | ' | ' |
Period of consideration for performance targets related to acquisition | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Business Acquisition, Date of Acquisition Agreement | ' | ' | ' | ' | ' | ' | ' | ' | 21-May-13 | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | 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. | ' | ' | ' | ' | ' | ' |
Purchase price adjustment period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Purchase price adjustment period, after close of purchase | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Estimated dividend payment to noncontrolling interest | ' | ' | ' | ' | ' | ' | 38 | ' | ' | ' | ' |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | ' | ' | ' | $672 | ' | ' | ' | ' | ' | ' | ' |