Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 26, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Philip Morris International Inc. | |
Entity Central Index Key | 1,413,329 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,549,295,695 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 2,393 | $ 1,682 |
Receivables (less allowances of $54 in 2015 and $50 in 2014) | 3,322 | 4,004 |
Inventories: | ||
Leaf tobacco | 2,973 | 3,135 |
Other raw materials | 1,783 | 1,696 |
Finished product | 2,451 | 3,761 |
Total inventory, net | 7,207 | 8,592 |
Deferred income taxes | 386 | 533 |
Other current assets | 804 | 673 |
Total current assets | 14,112 | 15,484 |
Property, plant and equipment, at cost | 11,865 | 12,759 |
Less: accumulated depreciation | 6,265 | 6,688 |
Total property, plant and equipment, net | 5,600 | 6,071 |
Goodwill (Note 5) | 7,404 | 8,388 |
Other intangible assets, net (Note 5) | 2,621 | 2,985 |
Investments in unconsolidated subsidiaries (Note 15) | 919 | 1,083 |
Other assets | 1,355 | 1,176 |
TOTAL ASSETS | 32,011 | 35,187 |
LIABILITIES | ||
Short-term borrowings (Note 11) | 1,007 | 1,208 |
Current portion of long-term debt (Note 11) | 2,100 | 1,318 |
Accounts payable | 1,237 | 1,242 |
Accrued liabilities: | ||
Marketing and selling | 535 | 549 |
Taxes, except income taxes | 4,336 | 5,490 |
Employment costs | 802 | 1,135 |
Dividends payable | 1,589 | 1,559 |
Other | 1,238 | 1,375 |
Income taxes | 1,063 | 1,078 |
Deferred income taxes | 195 | 158 |
Total current liabilities | 14,102 | 15,112 |
Long-term debt (Note 11) | 25,800 | 26,929 |
Deferred income taxes | 1,614 | 1,549 |
Employment costs | 2,061 | 2,202 |
Other liabilities | 660 | 598 |
Total liabilities | $ 44,237 | $ 46,390 |
Contingencies (Note 9) | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | ||
Common stock, no par value (2,109,316,331 shares issued in 2015 and 2014) | $ 0 | $ 0 |
Additional paid-in capital | 783 | 710 |
Earnings reinvested in the business | 30,178 | 29,249 |
Accumulated other comprehensive losses | (8,927) | (6,826) |
Total stockholders' equity before treasury stock | 22,034 | 23,133 |
Less: cost of repurchased stock (560,022,199 and 562,416,635 shares in 2015 and 2014, respectively) | 35,616 | 35,762 |
Total PMI stockholders’ deficit | (13,582) | (12,629) |
Noncontrolling interests | 1,356 | 1,426 |
Total stockholders’ deficit | (12,226) | (11,203) |
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ 32,011 | $ 35,187 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 54 | $ 50 |
Common stock, no par value (in dollars per share) | ||
Common stock, shares issued (in shares) | 2,109,316,331 | 2,109,316,331 |
Repurchased stock, shares (in shares) | 560,022,199 | 562,416,635 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 19,422 | $ 21,335 | $ 55,537 | $ 60,165 |
Cost of sales | 2,383 | 2,734 | 6,990 | 7,804 |
Excise taxes on products | 12,495 | 13,479 | 35,135 | 37,595 |
Gross profit | 4,544 | 5,122 | 13,412 | 14,766 |
Marketing, administration and research costs | 1,566 | 1,763 | 4,628 | 5,026 |
Asset impairment and exit costs (Note 2) | 0 | (9) | 0 | 503 |
Amortization of intangibles | 19 | 23 | 62 | 67 |
Operating income | 2,959 | 3,345 | 8,722 | 9,170 |
Interest expense, net | 247 | 267 | 781 | 789 |
Earnings before income taxes | 2,712 | 3,078 | 7,941 | 8,381 |
Provision for income taxes | 748 | 918 | 2,276 | 2,446 |
Equity (income)/loss in unconsolidated subsidiaries, net | (20) | (38) | (69) | (74) |
Net earnings | 1,984 | 2,198 | 5,734 | 6,009 |
Net earnings attributable to noncontrolling interests | 42 | 43 | 110 | 128 |
Net earnings attributable to PMI | $ 1,942 | $ 2,155 | $ 5,624 | $ 5,881 |
Per share data (Note 7): | ||||
Basic earnings per share (in dollars per share) | $ 1.25 | $ 1.38 | $ 3.62 | $ 3.73 |
Diluted earnings per share (in dollars per share) | 1.25 | 1.38 | 3.62 | 3.73 |
Dividends declared (in dollars per share) | $ 1.02 | $ 1 | $ 3.02 | $ 2.88 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,984 | $ 2,198 | $ 5,734 | $ 6,009 |
Change in currency translation adjustments: | ||||
Unrealized losses, net of income taxes of ($286) and ($346) for the nine months ended September 30, 2015 and 2014, and $44 and ($287) for the three months ended September 30, 2015 and 2014 | (849) | (830) | (2,266) | (944) |
Change in net loss and prior service cost: | ||||
Net losses and prior service costs, net of income taxes of $4 for the nine months ended September 30, 2014, and $1 for the three months ended September 30, 2014 | 0 | 0 | 0 | (41) |
Amortization of net losses, prior service costs and net transition costs, net of income taxes of ($37) and ($37) for the nine months ended September 30, 2015 and 2014, and ($13) and ($11) for the three months ended September 30, 2015 and 2014 | 56 | 38 | 166 | 119 |
Change in fair value of derivatives accounted for as hedges: | ||||
Gains (losses) recognized, net of income taxes of ($3) and ($1) for the nine months ended September 30, 2015 and 2014, and $3 and ($6) for the three months ended September 30, 2015 and 2014 | (36) | 56 | 30 | 21 |
(Gains) losses transferred to earnings, net of income taxes of $11 and $4 for the nine months ended September 30, 2015 and 2014, and $3 and $2 for the three months ended September 30, 2015 and 2014 | (13) | 3 | (79) | (10) |
Total other comprehensive losses | (842) | (733) | (2,149) | (855) |
Total comprehensive earnings | 1,142 | 1,465 | 3,585 | 5,154 |
Less comprehensive earnings attributable to: | ||||
Noncontrolling interests | 20 | 18 | 62 | 105 |
Comprehensive earnings attributable to PMI | $ 1,122 | $ 1,447 | $ 3,523 | $ 5,049 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Income taxes on Currency translation adjustments | $ 44 | $ (287) | $ (286) | $ (346) |
Income taxes on Net Losses and Prior Service Costs | 0 | 1 | 0 | 4 |
Income taxes on Amortization of net losses, prior service costs and net transition costs | (13) | (11) | (37) | (37) |
Income taxes on (loss)/gain recognized from fair value of derivatives accounted for as hedges | 3 | (6) | (3) | (1) |
Income taxes on loss/(gain) transferred to earnings from fair value of derivatives accounted for as hedges | $ 3 | $ 2 | $ 11 | $ 4 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) - USD ($) $ in Millions | 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] |
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 | 6,009 | 5,881 | 128 | ||||
Other comprehensive earnings (losses), net of income taxes | (855) | (832) | (23) | ||||
Issuance of stock awards and exercise of stock options | 137 | (31) | 168 | ||||
Dividends declared ($2.88 and $3.02 per share for the nine months ended September 30, 2014 and 2015, respectively) | (4,532) | (4,532) | |||||
Payments to noncontrolling interests | (168) | (168) | |||||
Common stock repurchased | (3,000) | (3,000) | |||||
Other | 6 | 6 | |||||
Ending balance at Sep. 30, 2014 | (8,677) | 0 | 692 | 29,192 | (5,022) | (34,974) | 1,435 |
Beginning balance at Dec. 31, 2014 | (11,203) | 0 | 710 | 29,249 | (6,826) | (35,762) | 1,426 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 5,734 | 5,624 | 110 | ||||
Other comprehensive earnings (losses), net of income taxes | (2,149) | $ (2,101) | (48) | ||||
Issuance of stock awards and exercise of stock options | 110 | (36) | 146 | ||||
Dividends declared ($2.88 and $3.02 per share for the nine months ended September 30, 2014 and 2015, respectively) | (4,695) | (4,695) | |||||
Payments to noncontrolling interests | (142) | (142) | |||||
Purchase price activity for subsidiary shares from noncontrolling interests (Note 16) | 119 | 109 | 10 | ||||
Ending balance at Sep. 30, 2015 | $ (12,226) | $ 0 | $ 783 | $ 30,178 | $ (8,927) | $ (35,616) | $ 1,356 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 1.02 | $ 1 | $ 3.02 | $ 2.88 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 5,734 | $ 6,009 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 561 | 660 |
Deferred income tax provision | 102 | 52 |
Asset impairment and exit costs, net of cash paid | (220) | 240 |
Cash effects of changes, net of the effects from acquired companies: | ||
Receivables, net | 175 | (176) |
Inventories | 588 | 1,326 |
Accounts payable | 170 | 127 |
Income taxes | (58) | (438) |
Accrued liabilities and other current assets | (1,268) | (1,408) |
Pension plan contributions | (62) | (98) |
Other | 271 | 91 |
Net cash provided by operating activities | 5,993 | 6,385 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (636) | (804) |
Purchase of businesses, net of acquired cash | 0 | (110) |
Investments in unconsolidated subsidiaries | (24) | (22) |
Other | 272 | 163 |
Net cash used in investing activities | (388) | (773) |
Short-term borrowing activity by original maturity: | ||
Net issuances (repayments) - maturities of 90 days or less | (86) | 233 |
Issuances - maturities longer than 90 days | 0 | 977 |
Repayments - maturities longer than 90 days | 0 | (1,435) |
Long-term debt proceeds | 1,539 | 3,632 |
Long-term debt repaid | (1,228) | (1,240) |
Repurchases of common stock | (48) | (3,050) |
Dividends paid | (4,665) | (4,471) |
Purchase price activity for subsidiary shares from noncontrolling interests (Note 16) | 119 | 0 |
Other | (92) | (208) |
Net cash used in financing activities | (4,461) | (5,562) |
Effect of exchange rate changes on cash and cash equivalents | (433) | (161) |
Cash and cash equivalents: | ||
Increase (Decrease) | 711 | (111) |
Balance at beginning of period | 1,682 | 2,154 |
Balance at end of period | $ 2,393 | $ 2,043 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
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, other tobacco products and other nicotine-containing 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. These statements should be read in conjunction with the audited consolidated financial statements and related notes, which appear in PMI’s Annual Report on Form 10-K for the year ended December 31, 2014 . |
Asset Impairment and Exit Costs
Asset Impairment and Exit Costs | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Separation programs: European Union $ — $ 343 $ — $ (16 ) Asia — 24 — — Latin America & Canada — 3 — 3 Total separation programs — 370 — (13 ) Asset impairment charges: European Union — 129 — — Latin America & Canada — 4 — 4 Total asset impairment charges — 133 — 4 Asset impairment and exit costs $ — $ 503 $ — $ (9 ) Movement in Exit Cost Liabilities The movement in exit cost liabilities for the nine months ended September 30, 2015 was as follows: (in millions) Liability balance, January 1, 2015 $ 270 Charges, net — Cash spent (220 ) Currency/other (14 ) Liability balance, September 30, 2015 $ 36 Cash payments related to exit costs at PMI were $220 million and $16 million for the nine months and three months ended September 30, 2015 , respectively, and $263 million and $33 million for the nine months and three months ended September 30, 2014 , respectively. Future cash payments for exit costs incurred to date are expected to be approximately $36 million , and will be substantially paid by the end 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 reached an agreement with the trade unions and their members on a social plan and ceased cigarette production on September 1, 2014. For the nine months ended September 30, 2014, total pre-tax asset impairment and exit costs of $472 million were recorded for this program in the European Union Segment. This amount includes employee separation costs of $343 million and asset impairment costs of $129 million . For the three months ended September 30, 2014 a reversal of $16 million was recorded for this program due to a change in estimate. Other Separation Program Charges PMI recorded other pre-tax separation program charges of $27 million and $3 million for the nine months and three months ended September 30, 2014, respectively, related to severance costs for factory closures in Australia and Canada. Asset Impairment Charges PMI recorded other pre-tax asset impairment charges of $4 million for the nine months and three months ended September 30, 2014 related to a factory closure in Canada. |
Stock Plans
Stock Plans | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans: In May 2012, PMI’s shareholders 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 September 30, 2015 , shares available for grant under the 2012 Plan were 23,251,370 . 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 September 30, 2015 , shares available for grant under the plan were 691,432 . During the nine months ended September 30, 2015 , PMI granted 1.5 million shares of deferred stock awards to eligible employees at a weighted average grant date fair value of $82.27 per share. During the nine months ended September 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. PMI recorded compensation expense related to stock awards of $132 million and $161 million during the nine months ended September 30, 2015 and 2014, respectively, and $38 million and $48 million during the three months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 , PMI had $171 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 nine months ended September 30, 2015 , 2.7 million shares of PMI deferred stock awards vested. The grant date fair value of all the vested shares was approximately $213 million . The total fair value of deferred stock awards that vested during the nine months ended September 30, 2015 was approximately $219 million . |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, For the Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Service cost $ 4 $ 4 $ 150 $ 155 Interest cost 13 12 108 155 Expected return on plan assets (11 ) (12 ) (244 ) (265 ) Amortization: Net loss 8 5 135 87 Prior service cost — — 3 5 Net periodic pension cost $ 14 $ 9 $ 152 $ 137 U.S. Plans Non-U.S. Plans For the Three Months Ended September 30, For the Three Months Ended September 30, (in millions) 2015 2014 2015 2014 Service cost $ 1 $ 1 $ 49 $ 51 Interest cost 4 4 36 52 Expected return on plan assets (4 ) (4 ) (80 ) (88 ) Amortization: Net loss 3 2 45 30 Prior service cost — — 1 1 Net periodic pension cost $ 4 $ 3 $ 51 $ 46 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 $62 million were made to the pension plans during the nine months ended September 30, 2015 . Currently, PMI anticipates making additional contributions during the remainder of 2015 of approximately $58 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 A
Goodwill and Other Intangible Assets, net | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net: Goodwill and other intangible assets, net, by segment were as follows: Goodwill Other Intangible Assets, net (in millions) September 30, December 31, September 30, December 31, European Union $ 1,310 $ 1,398 $ 530 $ 582 Eastern Europe, Middle East & Africa 442 517 205 215 Asia 3,438 3,904 1,046 1,207 Latin America & Canada 2,214 2,569 840 981 Total $ 7,404 $ 8,388 $ 2,621 $ 2,985 Goodwill primarily reflects 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, 2014 , were as follows: (in millions) European Eastern Asia Latin Total Balances, December 31, 2014 $ 1,398 $ 517 $ 3,904 $ 2,569 $ 8,388 Changes due to: Currency (88 ) (75 ) (466 ) (355 ) (984 ) Balances, September 30, 2015 $ 1,310 $ 442 $ 3,438 $ 2,214 $ 7,404 Additional details of other intangible assets were as follows: September 30, 2015 December 31, 2014 (in millions) Gross Accumulated Gross Accumulated Non-amortizable intangible assets $ 1,492 $ 1,704 Amortizable intangible assets 1,627 $ 498 1,877 $ 596 Total other intangible assets $ 3,119 $ 498 $ 3,581 $ 596 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 and distribution networks 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 September 30, 2015 , were as follows: (dollars in millions) Gross Carrying Amount Initial Estimated Weighted-Average Trademarks $ 1,393 2 - 40 years 22 years Distribution networks 149 5 - 30 years 11 years Other (including farmer 85 4 - 17 years 11 years $ 1,627 Pre-tax amortization expense for intangible assets during the nine months ended September 30, 2015 and 2014 was $62 million and $67 million , respectively, and $19 million and $23 million for the three months ended September 30, 2015 and 2014 , respectively. Amortization expense for each of the next five years is estimated to be $73 million or less, assuming no additional transactions occur that require the amortization of intangible assets. The decrease in the gross carrying amount of other intangible assets from December 31, 2014 , was due to currency movements and the retirement of fully amortized intangible assets. During the first quarter of 2015, 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 | 9 Months Ended |
Sep. 30, 2015 | |
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 and interest rates by creating offsetting exposures. PMI is not a party to leveraged derivatives and, by policy, does not use derivative financial instruments for speculative purposes. 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 ("foreign exchange contracts"), and interest rate contracts to mitigate its exposure to changes in exchange and interest rates from third-party and intercompany actual and forecasted transactions. 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 September 30, 2015 , PMI had contracts with aggregate notional amounts of $25.0 billion of which $2.5 billion related to cash flow hedges, $5.3 billion related to hedges of net investments in foreign operations and $17.2 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 sheets as of September 30, 2015 and December 31, 2014 , were as follows: Asset Derivatives Liability Derivatives Fair Value Fair Value (in millions) Balance Sheet Classification At September 30, 2015 At December 31, 2014 Balance Sheet Classification At September 30, 2015 At December 31, 2014 Foreign exchange contracts designated as hedging instruments Other current assets $ 257 $ 248 Other accrued liabilities $ 3 $ — Other assets 158 122 Other liabilities 86 25 Foreign exchange contracts not designated as hedging instruments Other current assets 70 34 Other accrued liabilities 19 126 Other assets 86 2 Other liabilities 2 — Total derivatives $ 571 $ 406 $ 110 $ 151 For the nine months and three months ended September 30, 2015 and 2014 , PMI's cash flow and net investment hedging instruments impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, millions) For the Nine Months Ended September 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Classification of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationship Foreign exchange contracts $ 33 $ 22 Net revenues $ 115 $ 59 Cost of sales (3 ) — Marketing, administration and research costs 5 (18 ) Interest expense, net (27 ) (27 ) Derivatives in Net Investment Hedging Relationship Foreign exchange contracts 191 159 Total $ 224 $ 181 $ 90 $ 14 (pre-tax, millions) For the Three Months Ended September 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Classification of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationship Foreign exchange contracts $ (39 ) $ 62 Net revenues $ 40 $ 27 Cost of sales (3 ) — Marketing, administration and research costs (11 ) (17 ) Interest expense, net (10 ) (11 ) Derivatives in Net Investment Hedging Relationship Foreign exchange contracts (18 ) 123 Total $ (57 ) $ 185 $ 16 $ (1 ) 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 nine months and three months ended September 30, 2015 and 2014 , ineffectiveness related to cash flow hedges was not material. As of September 30, 2015 , PMI has hedged forecasted transactions for periods not exceeding the next fifteen months with the exception of one foreign exchange contract that expires in May 2024 . The impact of these hedges is primarily included in operating cash flows on PMI’s condensed consolidated statement of cash flows. 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 nine months ended September 30, 2015 and 2014 , these hedges of net investments resulted in gains, net of income taxes, of $584 million and $624 million , respectively. For the three months ended September 30, 2015 and 2014 , these hedges of net investments resulted in gains (losses), net of income taxes, of $(58) million and $531 million , respectively. These gains (losses) were reported as a component of accumulated other comprehensive losses within currency translation adjustments. For the nine months and three months ended September 30, 2015 and 2014 , 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. 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 nine months ended September 30, 2015 and 2014 , the losses from contracts for which PMI did not apply hedge accounting were $467 million and $113 million , respectively. For the three months ended September 30, 2015 and 2014 , the gains (losses) from contracts for which PMI did not apply hedge accounting were $268 million and $(207) million , respectively. The gains (losses) from these contracts substantially offset the gains (losses) generated by the underlying intercompany and third-party loans being hedged. For the nine months and three months ended September 30, 2015 and 2014 , the net impact of these contracts on the condensed consolidated statements of earnings was not material. 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 Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Gain at beginning of period $ 123 $ 63 $ 123 $ 15 Derivative (gains)/losses transferred to earnings (79 ) (10 ) (13 ) 3 Change in fair value 30 21 (36 ) 56 Gain as of September 30, $ 74 $ 74 $ 74 $ 74 At September 30, 2015 , PMI expects $56 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 12. Fair Value Measurements and Note 14. Balance Sheet Offsetting for additional discussion of derivative financial instruments. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Net earnings attributable to PMI $ 5,624 $ 5,881 $ 1,942 $ 2,155 Less distributed and undistributed earnings attributable to share-based payment awards 20 27 7 9 Net earnings for basic and diluted EPS $ 5,604 $ 5,854 $ 1,935 $ 2,146 Weighted-average shares for basic and diluted EPS 1,549 1,571 1,549 1,560 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 2015 and 2014 computations, there were no antidilutive stock options. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting: PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes, other tobacco products and other nicotine-containing products in markets outside of the United States of America. Reportable segments for PMI are organized and managed by geographic region. PMI’s reportable segments are European Union; Eastern Europe, Middle East & Africa; Asia; and Latin America & Canada. PMI records net revenues and operating companies income to its segments based upon the geographic area in which the customer resides. PMI’s management evaluates segment performance and allocates resources based on operating companies income, which PMI defines as operating income, excluding general corporate expenses and amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. Interest expense, net, and provision for income taxes are centrally managed 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 Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Net revenues: European Union $ 18,909 $ 22,225 $ 6,633 $ 7,777 Eastern Europe, Middle East & Africa 14,915 16,347 5,492 6,111 Asia 14,683 14,515 4,880 4,943 Latin America & Canada 7,030 7,078 2,417 2,504 Net revenues $ 55,537 $ 60,165 $ 19,422 $ 21,335 Earnings before income taxes: Operating companies income: European Union $ 2,904 $ 2,875 $ 1,014 $ 1,186 Eastern Europe, Middle East & Africa 2,794 3,218 1,033 1,204 Asia 2,421 2,614 690 799 Latin America & Canada 849 734 294 267 Amortization of intangibles (62 ) (67 ) (19 ) (23 ) General corporate expenses (115 ) (130 ) (33 ) (50 ) Less: Equity (income)/loss in unconsolidated subsidiaries, net (69 ) (74 ) (20 ) (38 ) Operating income 8,722 9,170 2,959 3,345 Interest expense, net (781 ) (789 ) (247 ) (267 ) Earnings before income taxes $ 7,941 $ 8,381 $ 2,712 $ 3,078 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 | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: Tobacco-Related Litigation Legal proceedings covering a wide range of matters are pending or threatened against us, and/or our subsidiaries, and/or our indemnitees in various jurisdictions. Our indemnitees include distributors, licensees, and others that have been named as parties in certain cases and that we have agreed to defend, as well as to pay costs and some or all of judgments, if any, that may be entered against them. Pursuant to the terms of the Distribution Agreement between Altria Group, Inc. ("Altria") and PMI, PMI will indemnify Altria and Philip Morris USA Inc. ("PM USA"), a U.S. tobacco subsidiary of Altria, for tobacco product claims based in substantial part on products manufactured by PMI or contract manufactured for PMI by PM USA, and PM USA will indemnify PMI for tobacco product claims based in substantial part on products manufactured by PM USA, excluding tobacco products contract manufactured for PMI. It is possible that there could be adverse developments in pending cases against us and our subsidiaries. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. Damages claimed in some of the tobacco-related litigation are significant and, in certain cases in Brazil, Canada and Nigeria, range into the billions of U.S. dollars. The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome. Much of the tobacco-related litigation is in its early stages, and litigation is subject to uncertainty. However, as discussed below, we have to date been largely successful in defending tobacco-related litigation. We and our subsidiaries record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, after assessing the information available to it (i) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases; and (iii) accordingly, no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases, if any. Legal defense costs are expensed as incurred. It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation. Nevertheless, although litigation is subject to uncertainty, we and each of our subsidiaries named as a defendant believe, and each has been so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid bases for appeal of adverse verdicts. All such cases are, and will continue to be, vigorously defended. However, we and our subsidiaries may enter into settlement discussions in particular cases if we believe it is in our best interests to do so. To date, we have paid one judgment in a tobacco-related case. That judgment, including costs, was approximately €1,400 (approximately $1,500 ), 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 October 27, 2015 , October 30, 2014 and October 30, 2013 : Type of Case Number of Cases Pending as of October 27, 2015 Number of Cases Pending as of Number of Cases Pending as of Individual Smoking and Health Cases 69 64 61 Smoking and Health Class Actions 11 11 11 Health Care Cost Recovery Actions 16 15 15 Lights Class Actions — 1 1 Individual Lights Cases 3 2 2 Public Civil Actions 2 2 3 Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 439 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. Twelve cases have had decisions in favor of plaintiffs. Nine of these cases have subsequently reached final resolution in our favor and three remain on appeal. The table below lists the verdict and significant post-trial developments in the three pending cases where a verdict was returned in favor of the plaintiff: Date Location of Type of Verdict Post-Trial February 2004 Brazil/The Smoker Health Defense Association Class Action The Civil Court of São Paulo found defendants liable without hearing evidence. In April 2004, the court awarded “moral damages” of R$1,000 (approximately $260) 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 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. 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 appealed the decision. In February 2015, the appellate court unanimously dismissed plaintiff's appeal. In September 2015, plaintiff appealed to the Superior Court of Justice. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that plaintiff did not have standing to bring the lawsuit. This appeal is still pending. Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Cecilia Letourneau Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Letourneau class on liability and awarded a total of CAD 131 million (approximately $99.6 million) in punitive damages, allocating CAD 46 million (approximately $35 million) to our subsidiary. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. In June 2015, our subsidiary commenced the appellate process with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust. In August 2015, plaintiffs filed a motion for security with the Court of Appeal covering both the Letourneau case and the Blais case described below. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling CAD 226 million (approximately $171 million) to cover both the Letourneau and Blais cases. A hearing for the merits appeal is scheduled in November 2016. (See below for further detail.) Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $11.8 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.36 billion)). The trial court awarded CAD 90,000 (approximately $68,000) in punitive damages, allocating CAD 30,000 (approximately $22,800) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $760 million) of the compensatory damage award, CAD $200 million (approximately $152 million) of which is our subsidiary’s portion, into a trust within 60 days. In June 2015, our subsidiary commenced the appellate process with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust. In August 2015, plaintiffs filed a motion for security with the Court of Appeal. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling, together with the Letourneau case, CAD 226 million (approximately $171 million). A hearing for the merits appeal is scheduled in November 2016. (See below for further detail.) 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 October 27, 2015 , there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 69 cases brought by individual plaintiffs in Argentina ( 31 ), Brazil ( 21 ), Canada ( 2 ), Chile ( 8 ), Costa Rica ( 2 ), Greece ( 1 ), Italy ( 2 ), the Philippines ( 1 ) and Scotland ( 1 ), compared with 64 such cases on October 30, 2014 , and 61 cases on October 30, 2013 ; and • 11 cases brought on behalf of classes of individual plaintiffs in Brazil ( 2 ) and Canada ( 9 ), compared with 11 such cases on October 30, 2014 and 11 such cases on October 30, 2013 . 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 all addicted smokers and former smokers, and injunctive relief. In 2004, the trial court found defendants liable without hearing evidence and awarded “moral damages” of R$1,000 (approximately $260 ) 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 appealed the decision. In February 2015, the appellate court unanimously dismissed plaintiff's appeal. In September 2015, plaintiff appealed to the Superior Court of Justice. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that plaintiff did not have standing to bring the lawsuit. This appeal is still pending. 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. In July 2014, plaintiff appealed to the Superior Court of Justice. 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 (Imperial Tobacco Canada Ltd. and JTI-MacDonald Corp.) are defendants. The plaintiff, an individual smoker, sought compensatory and punitive damages for each member of the class who is deemed addicted to smoking. The class was certified in 2005. Trial began in March 2012 and concluded in December 2014. The trial court issued its judgment on May 27, 2015. The trial court found our subsidiary and two other Canadian manufacturers liable and awarded a total of CAD 131 million (approximately $99.6 million ) in punitive damages, allocating CAD 46 million (approximately $35 million ) to our subsidiary. The trial court found that defendants violated the Civil Code of Quebec, the Quebec Charter of Human Rights and Freedoms, and the Quebec Consumer Protection Act by failing to warn adequately of the dangers of smoking. The trial court also found that defendants conspired to prevent consumers from learning the dangers of smoking. The trial court further held that these civil faults were a cause of the class members’ addiction. The trial court rejected other grounds of fault advanced by the class, holding that: (i) the evidence was insufficient to show that defendants marketed to youth, (ii) defendants’ advertising did not convey false information about the characteristics of cigarettes, and (iii) defendants did not commit a fault by using the descriptors light or mild for cigarettes with a lower tar delivery. The trial court estimated the size of the addiction class at 918,000 members but declined to award compensatory damages to the addiction class because the evidence did not establish the claims with sufficient accuracy. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days and found that a claims process to allocate the awarded damages to individual class members would be too expensive and difficult to administer. The trial court ordered a briefing on the proposed process for the distribution of sums remaining from the punitive damage award after payment of attorneys’ fees and legal costs. In June 2015, our subsidiary commenced the appellate process by filing its inscription of appeal of the trial court’s judgment with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust within 60 days notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust within 60 days . In August 2015, plaintiffs filed a motion with the Court of Appeal seeking security in both the Letourneau case and the Blais case described below. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling CAD 226 million (approximately $171 million ), in the form of cash into a court trust or letters of credit, in six equal consecutive quarterly installments of approximately CAD 37.6 million (approximately $28.5 million ) beginning in December 2015 through March 2017. See the Blais description for further detail concerning the security order. The Court of Appeal has scheduled a hearing for the merits appeal in November 2016. Our subsidiary and PMI believe that the findings of liability and damages were incorrect and should ultimately be set aside on any one of many grounds, including the following: (i) holding that defendants violated Quebec law by failing to warn class members of the risks of smoking even after the court found that class members knew, or should have known, of the risks, (ii) finding that plaintiffs were not required to prove that defendants’ alleged misconduct caused injury to each class member in direct contravention of binding precedent, (iii) creating a factual presumption, without any evidence from class members or otherwise, that defendants’ alleged misconduct caused all smoking by all class members, (iv) holding that the addiction class members’ claims for punitive damages were not time-barred even though the case was filed more than three years after a prominent addiction warning appeared on all packages, and (v) awarding punitive damages to punish defendants without proper consideration as to whether punitive damages were necessary to deter future misconduct. 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 (Imperial Tobacco Canada Ltd. and JTI-MacDonald Corp.) are defendants. The plaintiffs, an anti-smoking organization and an individual smoker, sought compensatory and punitive damages for each member of the class who allegedly suffers from certain smoking-related diseases. The class was certified in 2005. Trial began in March 2012 and concluded in December 2014. The trial court issued its judgment on May 27, 2015. The trial court found our subsidiary and two other Canadian manufacturers liable and found that the class members’ compensatory damages totaled approximately CAD 15.5 billion , including pre-judgment interest (approximately $11.8 billion ). The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion , including pre-judgment interest (approximately $2.36 billion )). In addition, the trial court awarded CAD 90,000 (approximately $68,000 ) in punitive damages, allocating CAD 30,000 (approximately $22,800 ) to our subsidiary and found that defendants violated the Civil Code of Quebec, the Quebec Charter of Human Rights and Freedoms, and the Quebec Consumer Protection Act by failing to warn adequately of the dangers of smoking. The trial court also found that defendants conspired to prevent consumers from learning the dangers of smoking. The trial court further held that these civil faults were a cause of the class members’ diseases. The trial court rejected other grounds of fault advanced by the class, holding that: (i) the evidence was insufficient to show that defendants marketed to youth, (ii) defendants’ advertising did not convey false information about the characteristics of cigarettes, and (iii) defendants did not commit a fault by using the descriptors light or mild for cigarettes with a lower tar delivery. The trial court estimated the disease class at 99,957 members. The trial court ordered defendants to pay CAD 1 billion (approximately $760 million ) of the compensatory damage award into a trust within 60 days , CAD $200 million (approximately $152 million ) of which is our subsidiary’s portion and ordered briefing on a proposed claims process for the distribution of damages to individual class members and for payment of attorneys’ fees and legal costs. In June 2015, our subsidiary commenced the appellate process by filing its inscription of appeal of the trial court’s judgment with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust within 60 days notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make an initial payment within 60 days . In August 2015, plaintiffs filed a motion with the Court of Appeal seeking an order that defendants place irrevocable letters of credit totaling CAD 5 billion (approximately $3.8 billion ) into trust, to secure the judgments in both the Letourneau and Blais cases. Plaintiffs subsequently withdrew their motion for security against JTI-MacDonald Corp. and proceeded only against our subsidiary and Imperial Tobacco Canada Ltd. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling CAD 226 million (approximately $171 million ) to cover both the Letourneau and Blais cases. Such security may take the form of cash into a court trust or letters of credit, in six equal consecutive quarterly installments of approximately CAD 37.6 million (approximately $28.5 million ) beginning in December 2015 through March 2017. The Court of Appeal ordered Imperial Tobacco Canada Ltd. to furnish security totaling CAD 758 million (approximately $574 million ) in seven equal consecutive quarterly installments of approximately CAD 108 million (approximately $82 million ) beginning in December 2015 through June 2017. The Court of Appeal ordered that the security is payable upon a final judgment of the Court of Appeal affirming the trial court’s judgment or upon further order of the Court of Appeal. The Court of Appeal has scheduled a hearing for the merits appeal in November 2016. Our subsidiary and PMI believe that the findings of liability and damages were incorrect and should ultimately be set aside on any one of many grounds, including the following: (i) holding that defendants violated Quebec law by failing to warn class members of the risks of smoking even after the court found that class members knew, or should have known, of the risks, (ii) finding that plaintiffs were not required to prove that defendants’ alleged misconduct caused injury to each class member in direct contravention of binding precedent, (iii) creating a factual presumption, without any evidence from class members or otherwise, that defendants’ alleged misconduct caused all smoking by all class members, (iv) relying on epidemiological evidence that did not meet recognized scientific standards, and (v) awarding punitive damages to punish defendants without proper consideration as to whether punitive damages were necessary to deter future misconduct. 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. 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. In December 2014, the plaintiff filed an amended statement of claim. In the ninth class action pending in Canada, Suzanne Jacklin v. Canadian Tobacco Manufacturers' Council, et al., Ontario Superior Court of Justice, filed June 20, 2012, we, 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 October 27, 2015 , there were 16 health care cost recovery cases pending against us, our subsidiaries or indemnitees in Canada ( 10 ), Korea ( 1 ) and Nigeria ( 5 ), compared with 15 such cases on October 30, 2014 and 15 such cases on October 30, 2013 . 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 prov |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Income tax provisions for jurisdictions outside the United States of America, as well as state and local income tax provisions, were determined on a separate company basis and the related assets and liabilities were recorded in PMI’s condensed consolidated balance sheets. PMI’s effective tax rates for the nine months and three months ended September 30, 2015 were 28.7% and 27.6% , respectively. PMI’s effective tax rates for the nine months and three months ended September 30, 2014 were 29.2% and 29.8% , respectively. PMI estimates that its full-year 2015 effective tax rate will be approximately 29% . The effective tax rate for the nine months ended September 30, 2015 was unfavorably impacted by changes to repatriation assertions on certain foreign subsidiary historical earnings ( $58 million ), partially offset by a reduction in unrecognized tax benefits of $13 million following the conclusion of the IRS examination of Altria's consolidated tax returns for the years 2007 and 2008. Prior to March 28, 2008, PMI was a wholly owned subsidiary of Altria. Excluding the effect of these items, the change in the effective tax rate for the nine months ended September 30, 2015 , as compared to the nine months ended September 30, 2014 , was primarily due to earnings mix by taxing jurisdiction and repatriation cost differences. The effective tax rates are based on PMI’s full-year earnings mix projections by taxing jurisdiction and cash repatriation plans. Changes in earnings mix by taxing jurisdiction 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 2009 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 12 months, certain tax examinations will close, which could result in a change in unrecognized tax benefits, along with related interest and penalties. An estimate of any possible change cannot be made at this time. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness: Short-term Borrowings: At September 30, 2015 and December 31, 2014 , PMI’s short-term borrowings, consisting of commercial paper and bank loans to certain PMI subsidiaries, had a carrying value of $1,007 million and $1,208 million , respectively. The fair value of PMI’s short-term borrowings, based on current market interest rates, approximates carrying value. Long-term Debt: At September 30, 2015 and December 31, 2014 , PMI’s long-term debt consisted of the following: (in millions) September 30, 2015 December 31, 2014 U.S. dollar notes, 1.125% to 6.375% (average interest rate 3.780%), due through 2044 $ 18,092 $ 17,229 Foreign currency obligations: Euro notes, 1.750% to 5.750% (average interest rate 2.799%), due through 2033 7,634 9,161 Swiss franc notes, 0.750% to 2.000% (average interest rate 1.216%), due through 2024 1,720 1,690 Other (average interest rate 3.114%), due through 2024 454 167 27,900 28,247 Less current portion of long-term debt 2,100 1,318 $ 25,800 $ 26,929 Other foreign currency debt above includes mortgage debt in Switzerland and capital lease obligations at September 30, 2015 and December 31, 2014 . Other foreign currency debt above also includes a bank loan in the Philippines at September 30, 2015. PMI's debt issuances in the first nine months of 2015 were as follows: (in millions) Type Face Value Interest Rate Issuance Maturity U.S. dollar notes (a) $500 1.250 % August 2015 August 2017 U.S. dollar notes (a) $750 3.375 % August 2015 August 2025 (a) Interest on these notes is payable semi-annually in arrears beginning in February 2016. 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 23, 2015, PMI entered into an agreement to extend the term of its existing $2.0 billion 364-day revolving credit facility, effective February 10, 2015, from February 10, 2015 to February 9, 2016. On January 23, 2015, PMI also entered into an agreement to extend the term of its existing $2.5 billion multi-year revolving credit facility, effective February 28, 2015, from February 28, 2019 to February 28, 2020. At September 30, 2015 , PMI's total committed credit facilities were as follows: (in billions) Type Committed Credit Facilities 364-day revolving credit, expiring February 9, 2016 $ 2.0 Multi-year revolving credit, expiring February 28, 2020 2.5 Multi-year revolving credit, expiring October 25, 2016 3.5 Total facilities $ 8.0 At September 30, 2015 , there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. On October 1, 2015, PMI replaced its $3.5 billion multi-year revolving credit facility, expiring October 25, 2016, with a new $3.5 billion multi-year revolving credit facility, expiring October 1, 2020. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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 PMI assesses the fair value of its foreign exchange contracts and interest rate contracts using standard valuation models that use, as their basis, readily observable market inputs. The fair value of PMI’s foreign exchange forward contracts 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 $13 million of capital lease obligations, was $27,887 million at September 30, 2015 . 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. Contingent Consideration The fair value of PMI's contingent consideration relating to acquisitions is determined utilizing a discounted cash flow approach using various probability weighted scenarios. The significant unobservable inputs used in calculating the fair value of the contingent consideration includes financial performance scenarios, the probability of achieving those scenarios, and the discount rate. PMI's contingent consideration has been classified within Level 3 in the table shown below. For additional information, see Note 16. Acquisitions and Other Business Arrangements . The aggregate fair values of PMI’s derivative financial instruments, debt and contingent consideration as of September 30, 2015 , were as follows: (in millions) Fair Value Quoted Prices Significant Significant Assets: Foreign exchange contracts $ 571 $ — $ 571 $ — Total assets $ 571 $ — $ 571 $ — Liabilities: Debt $ 29,513 $ 29,044 $ 469 $ — Foreign exchange contracts 110 — 110 — Contingent consideration 15 — — 15 Total liabilities $ 29,638 $ 29,044 $ 579 $ 15 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 At December 31, 2014 At September 30, 2014 Currency translation adjustments $ (6,147 ) $ (3,929 ) $ (3,128 ) Pension and other benefits (2,854 ) (3,020 ) (1,968 ) Derivatives accounted for as hedges 74 123 74 Total accumulated other comprehensive losses $ (8,927 ) $ (6,826 ) $ (5,022 ) 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 nine months and three months ended September 30, 2015 and 2014 . 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 | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting: Derivative Financial Instruments PMI uses foreign exchange contracts and interest rate contracts to mitigate its exposure to changes in exchange and interest rates from third-party and intercompany actual and forecasted transactions. Substantially all of PMI's derivative financial instruments are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. While these contracts contain the enforceable right to offset through close-out netting rights, PMI elects to present them on a gross basis in the 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 derivative financial instrument 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 September 30, 2015 Assets Foreign exchange contracts $ 571 $ — $ 571 $ (96 ) $ (416 ) $ 59 Liabilities Foreign exchange contracts $ 110 $ — $ 110 $ (96 ) $ (4 ) $ 10 At December 31, 2014 Assets Foreign exchange contracts $ 406 $ — $ 406 $ (77 ) $ (306 ) $ 23 Liabilities Foreign exchange contracts $ 151 $ — $ 151 $ (77 ) $ (63 ) $ 11 |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | Investments in Unconsolidated Subsidiaries: At September 30, 2015 and December 31, 2014 , PMI had total investments in unconsolidated subsidiaries of $919 million and $1,083 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 September 30, 2015 and December 31, 2014, PMI received year-to-date dividends from unconsolidated subsidiaries of $87 million and $107 million , respectively. On September 30, 2013, PMI acquired a 49% equity interest in United Arab Emirates-based Emirati Investors-TA (FZC) (“EITA”), formerly Arab Investors-TA (FZC), 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 EITA 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 EITA 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 September 30, 2015 and December 31, 2014, PMI's investments in other unconsolidated subsidiaries were $43 million and $38 million , respectively, with ownership percentages ranging from 40% to 50% . PMI’s earnings activity from unconsolidated subsidiaries was as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2015 2014 2015 2014 Net revenues $ 3,269 $ 4,184 $ 1,051 $ 1,578 PMI’s balance sheet activity related to unconsolidated subsidiaries was as follows: (in millions) At September 30, 2015 At December 31, 2014 Receivables $ 404 $ 407 Notes receivable $ 107 $ 100 Other liabilities $ 99 $ 93 The activity primarily related to agreements with PMI’s unconsolidated subsidiaries within the Eastern Europe, Middle East & Africa segment. 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 Business
Acquisitions and Other Business Arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Other Business Arrangements | Acquisitions and Other Business Arrangements: As announced in June 2015, PMI’s subsidiary PT HM Sampoerna Tbk. (“Sampoerna”), of which PMI held a 98.18% interest, is required to comply with the January 30, 2014 Indonesian Stock Exchange (“IDX”) regulation requiring all listed public companies to have at least a 7.5% public shareholding by January 30, 2016. In order to comply with this requirement, Sampoerna conducted a rights issue (the “Rights Issue”). The exercise price for the rights was set at Rp. 77,000 , a 1.349% premium to the closing price on the IDX as of September 30, 2015. In connection with the Rights Issue, PT Philip Morris Indonesia (“PMID”), a fully consolidated subsidiary of PMI, sold 264,209,711 of the rights to third party investors. Delivery of the rights shares sold took place on October 26, 2015. The total net proceeds from the Rights Issue were approximately $1.5 billion at prevailing exchange rates on the closing date. In June 2014, PMI acquired 100% of Nicocigs Limited, a leading U.K.-based e-vapor company, for the final purchase price of $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. At September 30, 2015, the additional contingent payments were up to $46 million and will be resolved within the next two years. For additional information regarding this contingent consideration, see Note 12. Fair Value Measurements . In September 2013, Grupo Carso, S.A.B. de C.V. ("Grupo Carso") sold to PMI its remaining 20% interest in PMI's Mexican tobacco business for $703 million . As a result, PMI now owns 100% of its Mexican tobacco business. A former director of PMI, whose term expired at the Annual Meeting of Shareholders in May 2015, had an affiliation with Grupo Carso. The final purchase price was subject to an 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 May 2015, PMI received a payment of $113 million from Grupo Carso as the final purchase price adjustment. This resulted in a total net purchase price of $590 million . In addition, 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 net decrease to PMI's additional paid-in capital of $559 million . The effects of these and other smaller acquisitions were not material to PMI's condensed consolidated financial position, results of operations or operating cash flows in any of the periods presented. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards: On May 28, 2014, the Financial Accounting Standards Board ("FASB") 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. In July 2015, the FASB approved a proposal which allows for a deferral of the implementation until January 1, 2018 and permits early application, but not before the original effective date of January 1, 2017. 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) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | On May 28, 2014, the Financial Accounting Standards Board ("FASB") 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. In July 2015, the FASB approved a proposal which allows for a deferral of the implementation until January 1, 2018 and permits early application, but not before the original effective date of January 1, 2017. 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 Cos28
Asset Impairment and Exit Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Separation programs: European Union $ — $ 343 $ — $ (16 ) Asia — 24 — — Latin America & Canada — 3 — 3 Total separation programs — 370 — (13 ) Asset impairment charges: European Union — 129 — — Latin America & Canada — 4 — 4 Total asset impairment charges — 133 — 4 Asset impairment and exit costs $ — $ 503 $ — $ (9 ) |
Movement in the Exit Cost Liabilities | The movement in exit cost liabilities for the nine months ended September 30, 2015 was as follows: (in millions) Liability balance, January 1, 2015 $ 270 Charges, net — Cash spent (220 ) Currency/other (14 ) Liability balance, September 30, 2015 $ 36 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, For the Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Service cost $ 4 $ 4 $ 150 $ 155 Interest cost 13 12 108 155 Expected return on plan assets (11 ) (12 ) (244 ) (265 ) Amortization: Net loss 8 5 135 87 Prior service cost — — 3 5 Net periodic pension cost $ 14 $ 9 $ 152 $ 137 U.S. Plans Non-U.S. Plans For the Three Months Ended September 30, For the Three Months Ended September 30, (in millions) 2015 2014 2015 2014 Service cost $ 1 $ 1 $ 49 $ 51 Interest cost 4 4 36 52 Expected return on plan assets (4 ) (4 ) (80 ) (88 ) Amortization: Net loss 3 2 45 30 Prior service cost — — 1 1 Net periodic pension cost $ 4 $ 3 $ 51 $ 46 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets, Net, by Segment or Major Class | Additional details of other intangible assets were as follows: September 30, 2015 December 31, 2014 (in millions) Gross Accumulated Gross Accumulated Non-amortizable intangible assets $ 1,492 $ 1,704 Amortizable intangible assets 1,627 $ 498 1,877 $ 596 Total other intangible assets $ 3,119 $ 498 $ 3,581 $ 596 Goodwill and other intangible assets, net, by segment were as follows: Goodwill Other Intangible Assets, net (in millions) September 30, December 31, September 30, December 31, European Union $ 1,310 $ 1,398 $ 530 $ 582 Eastern Europe, Middle East & Africa 442 517 205 215 Asia 3,438 3,904 1,046 1,207 Latin America & Canada 2,214 2,569 840 981 Total $ 7,404 $ 8,388 $ 2,621 $ 2,985 |
Movements in Goodwill | The movements in goodwill from December 31, 2014 , were as follows: (in millions) European Eastern Asia Latin Total Balances, December 31, 2014 $ 1,398 $ 517 $ 3,904 $ 2,569 $ 8,388 Changes due to: Currency (88 ) (75 ) (466 ) (355 ) (984 ) Balances, September 30, 2015 $ 1,310 $ 442 $ 3,438 $ 2,214 $ 7,404 |
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 September 30, 2015 , were as follows: (dollars in millions) Gross Carrying Amount Initial Estimated Weighted-Average Trademarks $ 1,393 2 - 40 years 22 years Distribution networks 149 5 - 30 years 11 years Other (including farmer 85 4 - 17 years 11 years $ 1,627 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 sheets as of September 30, 2015 and December 31, 2014 , were as follows: Asset Derivatives Liability Derivatives Fair Value Fair Value (in millions) Balance Sheet Classification At September 30, 2015 At December 31, 2014 Balance Sheet Classification At September 30, 2015 At December 31, 2014 Foreign exchange contracts designated as hedging instruments Other current assets $ 257 $ 248 Other accrued liabilities $ 3 $ — Other assets 158 122 Other liabilities 86 25 Foreign exchange contracts not designated as hedging instruments Other current assets 70 34 Other accrued liabilities 19 126 Other assets 86 2 Other liabilities 2 — Total derivatives $ 571 $ 406 $ 110 $ 151 |
Cash Flow and Net Investment Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings | For the nine months and three months ended September 30, 2015 and 2014 , PMI's cash flow and net investment hedging instruments impacted the condensed consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, millions) For the Nine Months Ended September 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Classification of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationship Foreign exchange contracts $ 33 $ 22 Net revenues $ 115 $ 59 Cost of sales (3 ) — Marketing, administration and research costs 5 (18 ) Interest expense, net (27 ) (27 ) Derivatives in Net Investment Hedging Relationship Foreign exchange contracts 191 159 Total $ 224 $ 181 $ 90 $ 14 (pre-tax, millions) For the Three Months Ended September 30, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Classification of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationship Foreign exchange contracts $ (39 ) $ 62 Net revenues $ 40 $ 27 Cost of sales (3 ) — Marketing, administration and research costs (11 ) (17 ) Interest expense, net (10 ) (11 ) Derivatives in Net Investment Hedging Relationship Foreign exchange contracts (18 ) 123 Total $ (57 ) $ 185 $ 16 $ (1 ) |
Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes | Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: (in millions) For the Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Gain at beginning of period $ 123 $ 63 $ 123 $ 15 Derivative (gains)/losses transferred to earnings (79 ) (10 ) (13 ) 3 Change in fair value 30 21 (36 ) 56 Gain as of September 30, $ 74 $ 74 $ 74 $ 74 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Net earnings attributable to PMI $ 5,624 $ 5,881 $ 1,942 $ 2,155 Less distributed and undistributed earnings attributable to share-based payment awards 20 27 7 9 Net earnings for basic and diluted EPS $ 5,604 $ 5,854 $ 1,935 $ 2,146 Weighted-average shares for basic and diluted EPS 1,549 1,571 1,549 1,560 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Data | Segment data were as follows: (in millions) For the Nine Months Ended September 30, For the Three Months Ended September 30, 2015 2014 2015 2014 Net revenues: European Union $ 18,909 $ 22,225 $ 6,633 $ 7,777 Eastern Europe, Middle East & Africa 14,915 16,347 5,492 6,111 Asia 14,683 14,515 4,880 4,943 Latin America & Canada 7,030 7,078 2,417 2,504 Net revenues $ 55,537 $ 60,165 $ 19,422 $ 21,335 Earnings before income taxes: Operating companies income: European Union $ 2,904 $ 2,875 $ 1,014 $ 1,186 Eastern Europe, Middle East & Africa 2,794 3,218 1,033 1,204 Asia 2,421 2,614 690 799 Latin America & Canada 849 734 294 267 Amortization of intangibles (62 ) (67 ) (19 ) (23 ) General corporate expenses (115 ) (130 ) (33 ) (50 ) Less: Equity (income)/loss in unconsolidated subsidiaries, net (69 ) (74 ) (20 ) (38 ) Operating income 8,722 9,170 2,959 3,345 Interest expense, net (781 ) (789 ) (247 ) (267 ) Earnings before income taxes $ 7,941 $ 8,381 $ 2,712 $ 3,078 |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 October 27, 2015 , October 30, 2014 and October 30, 2013 : Type of Case Number of Cases Pending as of October 27, 2015 Number of Cases Pending as of Number of Cases Pending as of Individual Smoking and Health Cases 69 64 61 Smoking and Health Class Actions 11 11 11 Health Care Cost Recovery Actions 16 15 15 Lights Class Actions — 1 1 Individual Lights Cases 3 2 2 Public Civil Actions 2 2 3 |
Schedule Of Verdicts And Post Trial Developments Where a Verdict was Returned In Favor of the Plaintiff(s) | The table below lists the verdict and significant post-trial developments in the three pending cases where a verdict was returned in favor of the plaintiff: Date Location of Type of Verdict Post-Trial February 2004 Brazil/The Smoker Health Defense Association Class Action The Civil Court of São Paulo found defendants liable without hearing evidence. In April 2004, the court awarded “moral damages” of R$1,000 (approximately $260) 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 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. 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 appealed the decision. In February 2015, the appellate court unanimously dismissed plaintiff's appeal. In September 2015, plaintiff appealed to the Superior Court of Justice. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that plaintiff did not have standing to bring the lawsuit. This appeal is still pending. Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Cecilia Letourneau Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Letourneau class on liability and awarded a total of CAD 131 million (approximately $99.6 million) in punitive damages, allocating CAD 46 million (approximately $35 million) to our subsidiary. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. In June 2015, our subsidiary commenced the appellate process with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust. In August 2015, plaintiffs filed a motion for security with the Court of Appeal covering both the Letourneau case and the Blais case described below. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling CAD 226 million (approximately $171 million) to cover both the Letourneau and Blais cases. A hearing for the merits appeal is scheduled in November 2016. (See below for further detail.) Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $11.8 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.36 billion)). The trial court awarded CAD 90,000 (approximately $68,000) in punitive damages, allocating CAD 30,000 (approximately $22,800) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $760 million) of the compensatory damage award, CAD $200 million (approximately $152 million) of which is our subsidiary’s portion, into a trust within 60 days. In June 2015, our subsidiary commenced the appellate process with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust. In August 2015, plaintiffs filed a motion for security with the Court of Appeal. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling, together with the Letourneau case, CAD 226 million (approximately $171 million). A hearing for the merits appeal is scheduled in November 2016. (See below for further detail.) |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | At September 30, 2015 and December 31, 2014 , PMI’s long-term debt consisted of the following: (in millions) September 30, 2015 December 31, 2014 U.S. dollar notes, 1.125% to 6.375% (average interest rate 3.780%), due through 2044 $ 18,092 $ 17,229 Foreign currency obligations: Euro notes, 1.750% to 5.750% (average interest rate 2.799%), due through 2033 7,634 9,161 Swiss franc notes, 0.750% to 2.000% (average interest rate 1.216%), due through 2024 1,720 1,690 Other (average interest rate 3.114%), due through 2024 454 167 27,900 28,247 Less current portion of long-term debt 2,100 1,318 $ 25,800 $ 26,929 |
Debt Issuances During Current Period | PMI's debt issuances in the first nine months of 2015 were as follows: (in millions) Type Face Value Interest Rate Issuance Maturity U.S. dollar notes (a) $500 1.250 % August 2015 August 2017 U.S. dollar notes (a) $750 3.375 % August 2015 August 2025 (a) Interest on these notes is payable semi-annually in arrears beginning in February 2016. |
Schedule of Committed Credit Facilities | At September 30, 2015 , PMI's total committed credit facilities were as follows: (in billions) Type Committed Credit Facilities 364-day revolving credit, expiring February 9, 2016 $ 2.0 Multi-year revolving credit, expiring February 28, 2020 2.5 Multi-year revolving credit, expiring October 25, 2016 3.5 Total facilities $ 8.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Aggregate Fair Values of Derivative Financial Instruments, Debt and Contingent Consideration | The aggregate fair values of PMI’s derivative financial instruments, debt and contingent consideration as of September 30, 2015 , were as follows: (in millions) Fair Value Quoted Prices Significant Significant Assets: Foreign exchange contracts $ 571 $ — $ 571 $ — Total assets $ 571 $ — $ 571 $ — Liabilities: Debt $ 29,513 $ 29,044 $ 469 $ — Foreign exchange contracts 110 — 110 — Contingent consideration 15 — — 15 Total liabilities $ 29,638 $ 29,044 $ 579 $ 15 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 At December 31, 2014 At September 30, 2014 Currency translation adjustments $ (6,147 ) $ (3,929 ) $ (3,128 ) Pension and other benefits (2,854 ) (3,020 ) (1,968 ) Derivatives accounted for as hedges 74 123 74 Total accumulated other comprehensive losses $ (8,927 ) $ (6,826 ) $ (5,022 ) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | The effects of these derivative financial instrument 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 September 30, 2015 Assets Foreign exchange contracts $ 571 $ — $ 571 $ (96 ) $ (416 ) $ 59 Liabilities Foreign exchange contracts $ 110 $ — $ 110 $ (96 ) $ (4 ) $ 10 At December 31, 2014 Assets Foreign exchange contracts $ 406 $ — $ 406 $ (77 ) $ (306 ) $ 23 Liabilities Foreign exchange contracts $ 151 $ — $ 151 $ (77 ) $ (63 ) $ 11 |
Investments in Unconsolidated39
Investments in Unconsolidated Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: For the Nine Months Ended September 30, For the Three Months Ended September 30, (in millions) 2015 2014 2015 2014 Net revenues $ 3,269 $ 4,184 $ 1,051 $ 1,578 PMI’s balance sheet activity related to unconsolidated subsidiaries was as follows: (in millions) At September 30, 2015 At December 31, 2014 Receivables $ 404 $ 407 Notes receivable $ 107 $ 100 Other liabilities $ 99 $ 93 |
Asset Impairment and Exit Cos40
Asset Impairment and Exit Costs (Schedule of Asset Impairment and Exit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total separation programs | $ 0 | $ (13) | $ 0 | $ 370 |
Asset Impairment Charges | 0 | 4 | 0 | 133 |
Asset impairment and exit costs | 0 | (9) | 0 | 503 |
European Union [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total separation programs | 0 | (16) | 0 | 343 |
Asia [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total separation programs | 0 | 0 | 0 | 24 |
Latin America & Canada [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total separation programs | 0 | 3 | 0 | 3 |
Facility Closing [Member] | European Union [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 0 | 0 | 0 | 129 |
Asset impairment and exit costs | 472 | |||
Facility Closing [Member] | Latin America & Canada [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | $ 0 | $ 4 | $ 0 | $ 4 |
Asset Impairment and Exit Cos41
Asset Impairment and Exit Costs (Movement In The Exit Cost Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
Liability balance, January 1, 2015 | $ 270 | |||
Charges, net | 0 | |||
Cash spent | $ (16) | $ (33) | (220) | $ (263) |
Currency/other | (14) | |||
Liability balance, September 30, 2015 | $ 36 | $ 36 |
Asset Impairment and Exit Cos42
Asset Impairment and Exit Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |||||
Cash payments related to exit costs | $ 16 | $ 33 | $ 220 | $ 263 | |
Restructuring Reserve | 36 | 36 | $ 270 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment and exit costs | 0 | (9) | 0 | 503 | |
Employee separation costs | 0 | (13) | 0 | 370 | |
Asset Impairment Charges | 0 | 4 | 0 | 133 | |
European Union [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation costs | 0 | (16) | 0 | 343 | |
European Union [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment and exit costs | 472 | ||||
Asset Impairment Charges | 0 | 0 | 0 | 129 | |
Restructuring Reserve, Accrual Adjustment | 16 | ||||
Asia and Latin America & Canada [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation costs | 27 | ||||
Asia [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation costs | $ 0 | 0 | $ 0 | 24 | |
Canada [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation costs | 3 | ||||
Asset Impairment Charges | $ 4 | $ 4 |
Stock Plans (Details)
Stock Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | May. 31, 2012 | Dec. 31, 2008 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||
Minimum Retirement Age | 58 years | |||||
Deferred Compensation, Share-based Payments [Member] | ||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||
Number of shares of stock awards granted during period (in shares) | 1,500,000 | 2,400,000 | ||||
Weighted average grant date fair value of stock awards, per share (in dollars per share) | $ 82.27 | $ 77.74 | ||||
Compensation expense for stock awards | $ 38 | $ 48 | $ 132 | $ 161 | ||
Unrecognized compensation cost related to non-vested stock awards | $ 171 | $ 171 | ||||
Stock awards vested during period (in shares) | 2,700,000 | |||||
Deferred Compensation, Share-based Payments [Member] | Grant Date Fair Value [Member] | ||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||
Fair value of vested stock awards | $ 213 | |||||
Deferred Compensation, Share-based Payments [Member] | Total Fair Value [Member] | ||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||
Fair value of vested stock awards | $ 219 | |||||
Deferred Compensation, Share-based Payments [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 (in shares) | 30,000,000 | |||||
Shares available for grant under the plan (in shares) | 23,251,370 | 23,251,370 | ||||
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 (in shares) | 1,000,000 | |||||
Shares available for grant under the plan (in shares) | 691,432 | 691,432 | ||||
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. Plans - Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 4 | $ 4 |
Interest cost | 4 | 4 | 13 | 12 |
Expected return on plan assets | (4) | (4) | (11) | (12) |
Amortization: | ||||
Net loss | 3 | 2 | 8 | 5 |
Prior service cost | 0 | 0 | 0 | 0 |
Net periodic pension cost | 4 | 3 | 14 | 9 |
Non-U.S. Plans - Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 49 | 51 | 150 | 155 |
Interest cost | 36 | 52 | 108 | 155 |
Expected return on plan assets | (80) | (88) | (244) | (265) |
Amortization: | ||||
Net loss | 45 | 30 | 135 | 87 |
Prior service cost | 1 | 1 | 3 | 5 |
Net periodic pension cost | $ 51 | $ 46 | $ 152 | $ 137 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Employer Contributions | $ 62 |
Anticipated additional employer contributions during the remainder of the current fiscal year | $ 58 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets, net (Goodwill and Other Intangible Assets, by Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill and Other Intangible Assets, net [Line Items] | ||
Goodwill | $ 7,404 | $ 8,388 |
Other Intangible Assets, net | 2,621 | 2,985 |
European Union [Member] | ||
Goodwill and Other Intangible Assets, net [Line Items] | ||
Goodwill | 1,310 | 1,398 |
Other Intangible Assets, net | 530 | 582 |
Eastern Europe, Middle East & Africa [Member] | ||
Goodwill and Other Intangible Assets, net [Line Items] | ||
Goodwill | 442 | 517 |
Other Intangible Assets, net | 205 | 215 |
Asia [Member] | ||
Goodwill and Other Intangible Assets, net [Line Items] | ||
Goodwill | 3,438 | 3,904 |
Other Intangible Assets, net | 1,046 | 1,207 |
Latin America & Canada [Member] | ||
Goodwill and Other Intangible Assets, net [Line Items] | ||
Goodwill | 2,214 | 2,569 |
Other Intangible Assets, net | $ 840 | $ 981 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets, net (Movement In Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Balances, December 31, 2014 | $ 8,388 |
Changes due to: | |
Currency | (984) |
Balances, September 30, 2015 | 7,404 |
European Union [Member] | |
Goodwill [Roll Forward] | |
Balances, December 31, 2014 | 1,398 |
Changes due to: | |
Currency | (88) |
Balances, September 30, 2015 | 1,310 |
Eastern Europe, Middle East & Africa [Member] | |
Goodwill [Roll Forward] | |
Balances, December 31, 2014 | 517 |
Changes due to: | |
Currency | (75) |
Balances, September 30, 2015 | 442 |
Asia [Member] | |
Goodwill [Roll Forward] | |
Balances, December 31, 2014 | 3,904 |
Changes due to: | |
Currency | (466) |
Balances, September 30, 2015 | 3,438 |
Latin America & Canada [Member] | |
Goodwill [Roll Forward] | |
Balances, December 31, 2014 | 2,569 |
Changes due to: | |
Currency | (355) |
Balances, September 30, 2015 | $ 2,214 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Non-amortizable intangible assets, gross carrying amount | $ 1,492 | $ 1,704 |
Amortizable intangible assets, gross carrying amount | 1,627 | 1,877 |
Total other intangible assets, gross carrying amount | 3,119 | 3,581 |
Accumulated Amortization | $ 498 | $ 596 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets, net (Range of Useful Lives and Weighted-Average Remaining Useful Lives of Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,627 | $ 1,877 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,393 | |
Weighted-Average Remaining Useful Life | 22 years | |
Trademarks [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Initial Estimated Useful Lives | 2 years | |
Trademarks [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Initial Estimated Useful Lives | 40 years | |
Distribution Networks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 149 | |
Weighted-Average Remaining Useful Life | 11 years | |
Distribution Networks [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Initial Estimated Useful Lives | 5 years | |
Distribution Networks [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Initial Estimated Useful Lives | 30 years | |
Other (Including Farmer Contracts and Intellectual Property Rights) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 85 | |
Weighted-Average Remaining Useful Life | 11 years | |
Other (Including Farmer Contracts and Intellectual Property Rights) [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Initial Estimated Useful Lives | 4 years | |
Other (Including Farmer Contracts and Intellectual Property Rights) [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Initial Estimated Useful Lives | 17 years |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets, net (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible assets, pre-tax amortization expense | $ 19,000,000 | $ 23,000,000 | $ 62,000,000 | $ 67,000,000 | |
Estimated Amortization Expense, Year One, assuming no additional transactions occur that require the amortization of intangible assets | 73,000,000 | 73,000,000 | |||
Estimated Amortization Expense, Year Two, assuming no additional transactions occur that require the amortization of intangible assets | 73,000,000 | 73,000,000 | |||
Estimated Amortization Expense, Year Three, assuming no additional transactions occur that require the amortization of intangible assets | 73,000,000 | 73,000,000 | |||
Estimated Amortization Expense, Year Four, assuming no additional transactions occur that require the amortization of intangible assets | 73,000,000 | 73,000,000 | |||
Estimated Amortization Expense, Year Five, assuming no additional transactions occur that require the amortization of intangible assets | $ 73,000,000 | $ 73,000,000 | |||
Goodwill and Intangible Asset Impairment | $ 0 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||
Maturity of Foreign Currency Derivatives - Cash Flow Hedges | May 31, 2024 | |||
Unrealized gain (loss) on hedges of net investments | $ (849) | $ (830) | $ (2,266) | $ (944) |
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | 25,000 | $ 25,000 | ||
Maximum length of time hedged in a Cash Flow Hedge | 15 months | |||
Derivative Instruments, gains to be reclassified to earnings. | 56 | $ 56 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | 17,200 | 17,200 | ||
Gain (Loss) on derivatives not designated as hedging instruments | 268 | (207) | (467) | (113) |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | 2,500 | 2,500 | ||
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | 5,300 | 5,300 | ||
Unrealized gain (loss) on hedges of net investments | $ (58) | $ 531 | $ 584 | $ 624 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Foreign Exchange Contracts) (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | $ 571 | $ 406 |
Derivative liability fair value | 110 | 151 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 257 | 248 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 158 | 122 |
Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 3 | 0 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 86 | 25 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 70 | 34 |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | 86 | 2 |
Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | 19 | 126 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability fair value | $ 2 | $ 0 |
Financial Instruments (Cash Flo
Financial Instruments (Cash Flow and Net Investment Hedging Activities Effect on Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | $ (36) | $ 56 | $ 30 | $ 21 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (13) | 3 | (79) | (10) |
Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | (57) | 185 | 224 | 181 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 16 | (1) | 90 | 14 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | (39) | 62 | 33 | 22 |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Net Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 40 | 27 | 115 | 59 |
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 | (3) | 0 | (3) | 0 |
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 | (11) | (17) | 5 | (18) |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | (10) | (11) | (27) | (27) |
Foreign Exchange Contract [Member] | Net Investment Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | $ (18) | $ 123 | $ 191 | $ 159 |
Financial Instruments (Qualifyi
Financial Instruments (Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses) Net of Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ||||
Gain at beginning of period | $ 123 | |||
Derivative (gains)/losses transferred to earnings | $ 13 | $ (3) | 79 | $ 10 |
Change in fair value | (36) | 56 | 30 | 21 |
Gain as of September 30, | 74 | 74 | 74 | 74 |
Foreign Exchange Contract [Member] | ||||
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ||||
Derivative (gains)/losses transferred to earnings | (16) | 1 | (90) | (14) |
Change in fair value | (57) | 185 | 224 | 181 |
Other Comprehensive Income (Loss) [Member] | Foreign Exchange Contract [Member] | ||||
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | ||||
Gain at beginning of period | 123 | 15 | 123 | 63 |
Derivative (gains)/losses transferred to earnings | (13) | 3 | (79) | (10) |
Change in fair value | (36) | 56 | 30 | 21 |
Gain as of September 30, | $ 74 | $ 74 | $ 74 | $ 74 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Basic and Diluted EPS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to PMI | $ 1,942 | $ 2,155 | $ 5,624 | $ 5,881 |
Less distributed and undistributed earnings attributable to share-based payment awards | 7 | 9 | 20 | 27 |
Net earnings for basic and diluted EPS | $ 1,935 | $ 2,146 | $ 5,604 | $ 5,854 |
Weighted-average shares for basic and diluted EPS (in shares) | 1,549,000,000 | 1,560,000,000 | 1,549,000,000 | 1,571,000,000 |
Antidilutive stock options | 0 | 0 | 0 | 0 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 19,422 | $ 21,335 | $ 55,537 | $ 60,165 |
Amortization of intangibles | (19) | (23) | (62) | (67) |
Equity (income)/loss in unconsolidated subsidiaries, net | (20) | (38) | (69) | (74) |
Operating income | 2,959 | 3,345 | 8,722 | 9,170 |
Interest expense, net | (247) | (267) | (781) | (789) |
Earnings before income taxes | 2,712 | 3,078 | 7,941 | 8,381 |
Operating Segments [Member] | European Union [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 6,633 | 7,777 | 18,909 | 22,225 |
Operating companies income: | 1,014 | 1,186 | 2,904 | 2,875 |
Operating Segments [Member] | Eastern Europe, Middle East & Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 5,492 | 6,111 | 14,915 | 16,347 |
Operating companies income: | 1,033 | 1,204 | 2,794 | 3,218 |
Operating Segments [Member] | Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 4,880 | 4,943 | 14,683 | 14,515 |
Operating companies income: | 690 | 799 | 2,421 | 2,614 |
Operating Segments [Member] | Latin America & Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,417 | 2,504 | 7,030 | 7,078 |
Operating companies income: | 294 | 267 | 849 | 734 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of intangibles | (19) | (23) | (62) | (67) |
General corporate expenses | (33) | (50) | (115) | (130) |
Equity (income)/loss in unconsolidated subsidiaries, net | (20) | (38) | (69) | (74) |
Interest expense, net | $ (247) | $ (267) | $ (781) | $ (789) |
Contingencies (Tobacco-Related
Contingencies (Tobacco-Related Litigation) (Details) - Subsequent Event [Member] | 10 Months Ended | ||
Oct. 30, 2015litigation_case | Oct. 27, 2015USD ($)litigation_case | Oct. 27, 2015EUR (€)litigation_case | |
Loss Contingencies [Line Items] | |||
Number of judgments paid to date | 1 | ||
Case Decided In Favor Of Plaintiff [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases decided | 12 | 12 | |
Case Decided In Favor Of Plaintiff [Member] | Cases Remaining On Appeal [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 | 3 | |
Final Resolution In Favor Of Company [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases decided | 439 | 439 | |
Final Resolution In Favor Of Company [Member] | Case Decided In Favor Of Plaintiff [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases decided | 9 | 9 | |
Italy [Member] | Cases With Costs [Member] | Individual Lights Cases Small Claims Court [Member] | |||
Loss Contingencies [Line Items] | |||
Payments for total judgments including costs | $ 1,500 | € 1,400 |
Contingencies (Number of Tobacc
Contingencies (Number of Tobacco Related Cases Pending Against Us and/or Our Subsidiaries or Indemnitees) (Details) - litigation_case | Oct. 27, 2015 | Oct. 30, 2014 | Oct. 30, 2013 |
Individual Smoking And Health Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 64 | 61 | |
Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 11 | 11 | |
Health Care Cost Recovery Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 15 | 15 | |
Lights Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | 1 | |
Individual Lights Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Public Civil Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 3 | |
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 69 | ||
Subsequent Event [Member] | Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 11 | ||
Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 16 | ||
Subsequent Event [Member] | Lights Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 0 | ||
Subsequent Event [Member] | Individual Lights Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 | ||
Subsequent Event [Member] | Public Civil Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 |
Contingencies (Verdicts and Pos
Contingencies (Verdicts and Post-Trial Developments) (Details) | May. 27, 2015CAD | May. 27, 2015USD ($) | Oct. 30, 2015CAD | Oct. 30, 2015USD ($) | Jul. 31, 2015 | Jun. 30, 2015CAD | Jun. 30, 2015USD ($) | Apr. 30, 2004USD ($) | Apr. 30, 2004BRL | Sep. 30, 2015 |
Smoking And Health Class Actions [Member] | The Smoker Health Defense Association (ADESF) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Smoking and health loss contingency interest rate (percentage per month) | 1.00% | 1.00% | ||||||||
Smoking And Health Class Actions [Member] | Award per smoker per year [Member] | The Smoker Health Defense Association (ADESF) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages awarded | $ 260 | BRL 1,000 | ||||||||
Brazil [Member] | Smoking And Health Class Actions [Member] | Cases With Verdicts And Post Trial Developments [Member] | The Smoker Health Defense Association (ADESF) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Date | February 2,004 | |||||||||
Verdict | The Civil Court of São Paulo found defendants liable without hearing evidence. In April 2004, the court awarded “moral damages” of R$1,000 (approximately $260) 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 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 | 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 appealed the decision. In February 2015, the appellate court unanimously dismissed plaintiff's appeal. In September 2015, plaintiff appealed to the Superior Court of Justice. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that plaintiff did not have standing to bring the lawsuit. This appeal is still pending. | |||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | CAD 131,000,000 | $ 99,600,000 | ||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | CAD 46,000,000 | $ 35,000,000 | ||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||||||
Canada [Member] | Cecilia Letourneau [Member] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | |||||||||
Canada [Member] | Cecilia Letourneau [Member] | Pending Litigation [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | CAD 46,000,000 | $ 35,000,000 | ||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | ||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | ||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | CAD 90,000 | $ 68,000 | ||||||||
Compensatory damages awarded | 15,500,000,000 | 11,800,000,000 | ||||||||
Awarded compensatory damages that are to be deposited into trust | 1,000,000,000 | 760,000,000 | ||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages awarded | 30,000 | 22,800 | ||||||||
Compensatory damages awarded | CAD 3,100,000,000 | $ 2,360,000,000 | ||||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | ||||||||
Awarded compensatory damages that are to be deposited into trust | CAD 200,000,000 | $ 152,000,000 | ||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | |||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Pending Litigation [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Awarded compensatory damages that are to be deposited into trust | CAD 200,000,000 | $ 152,000,000 | ||||||||
Canada [Member] | Smoking And Health Class Actions [Member] | Cases With Verdicts And Post Trial Developments [Member] | Cecilia Letourneau [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Date | May 27, 2015 | |||||||||
Verdict | On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Letourneau class on liability and awarded a total of CAD 131 million (approximately $99.6 million) in punitive damages, allocating CAD 46 million (approximately $35 million) to our subsidiary. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages. | |||||||||
Post-Trial Developments | In June 2015, our subsidiary commenced the appellate process with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust. In August 2015, plaintiffs filed a motion for security with the Court of Appeal covering both the Letourneau case and the Blais case described below. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling CAD 226 million (approximately $171 million) to cover both the Letourneau and Blais cases. A hearing for the merits appeal is scheduled in November 2016. (See below for further detail.) | |||||||||
Canada [Member] | Smoking And Health Class Actions [Member] | Cases With Verdicts And Post Trial Developments [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Date | May 27, 2015 | |||||||||
Verdict | On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $11.8 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.36 billion)). The trial court awarded CAD 90,000 (approximately $68,000) in punitive damages, allocating CAD 30,000 (approximately $22,800) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $760 million) of the compensatory damage award, CAD $200 million (approximately $152 million) of which is our subsidiary’s portion, into a trust within 60 days. | |||||||||
Post-Trial Developments | In June 2015, our subsidiary commenced the appellate process with the Court of Appeal of Quebec. Our subsidiary also filed a motion to cancel the trial court’s order for payment into a trust notwithstanding appeal. In July 2015, the Court of Appeal granted the motion to cancel and overturned the trial court’s ruling that our subsidiary make the payment into a trust. In August 2015, plaintiffs filed a motion for security with the Court of Appeal. In October 2015, the Court of Appeal granted the motion and ordered our subsidiary to furnish security totaling, together with the Letourneau case, CAD 226 million (approximately $171 million). A hearing for the merits appeal is scheduled in November 2016. (See below for further detail.) | |||||||||
Subsequent Event [Member] | Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Amount of security ordered to be furnished | CAD 226,000,000 | $ 171,000,000 |
Contingencies (Smoking And Heal
Contingencies (Smoking And Health Litigation) (Details) | Jun. 26, 2015 | May. 27, 2015CADmanufacturerplaintiff | May. 27, 2015USD ($)manufacturerplaintiff | Jun. 20, 2012cigarette | Jul. 10, 2009cigarette | Oct. 30, 2015CADinstallment | Oct. 30, 2015USD ($)installment | Aug. 31, 2015CAD | Aug. 31, 2015USD ($) | Jul. 31, 2015 | Jun. 30, 2015CAD | Jun. 30, 2015USD ($) | Apr. 30, 2004USD ($) | Apr. 30, 2004BRL | Oct. 27, 2015litigation_case | Oct. 30, 2014litigation_case | Oct. 30, 2013litigation_case |
Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 64 | 61 | |||||||||||||||
Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 11 | 11 | |||||||||||||||
The Smoker Health Defense Association (ADESF) [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Smoking and health loss contingency interest rate | 1.00% | 1.00% | |||||||||||||||
The Smoker Health Defense Association (ADESF) [Member] | Award per smoker per year [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Damages awarded | $ 260 | BRL 1,000 | |||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | |||||||||||||||
Estimated number of members in class | plaintiff | 918,000 | 918,000 | |||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | CAD 131,000,000 | $ 99,600,000 | |||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | CAD 46,000,000 | $ 35,000,000 | |||||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | |||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | ||||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | Pending Litigation [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | CAD 46,000,000 | $ 35,000,000 | |||||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | |||||||||||||||
Period between addiction warning and claim | 3 years | 3 years | |||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of additional manufacturers found liable | manufacturer | 2 | 2 | |||||||||||||||
Estimated number of members in class | plaintiff | 99,957 | 99,957 | |||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | |||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | CAD 90,000 | $ 68,000 | |||||||||||||||
Compensatory damages awarded | 15,500,000,000 | 11,800,000,000 | |||||||||||||||
Awarded compensatory damages that are to be deposited into trust | 1,000,000,000 | 760,000,000 | |||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Judicial Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | 30,000 | 22,800 | |||||||||||||||
Compensatory damages awarded | CAD 3,100,000,000 | $ 2,360,000,000 | |||||||||||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | |||||||||||||||
Awarded compensatory damages that are to be deposited into trust | CAD 200,000,000 | $ 152,000,000 | |||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | ||||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Pending Litigation [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Awarded compensatory damages that are to be deposited into trust | CAD 200,000,000 | $ 152,000,000 | |||||||||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | ||||||||||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Under Advisement [Member] | Rothmans, Benson & Hedges Inc. and Imperial Tobacco Ltd. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Motion to secure judgment, Letters of credit to be placed into trust, option 1 | CAD 5,000,000,000 | $ 3,800,000,000 | |||||||||||||||
Canada [Member] | Adams [Member] | Pending Litigation [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Plaintiff requirement, Minimum number of cigarettes smoked | cigarette | 25,000 | ||||||||||||||||
Canada [Member] | Suzanne Jacklin [Member] | Pending Litigation [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Plaintiff requirement, Minimum number of cigarettes smoked | cigarette | 25,000 | ||||||||||||||||
Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 69 | ||||||||||||||||
Subsequent Event [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 11 | ||||||||||||||||
Subsequent Event [Member] | Argentina [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 31 | ||||||||||||||||
Subsequent Event [Member] | Brazil [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 21 | ||||||||||||||||
Subsequent Event [Member] | Brazil [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 2 | ||||||||||||||||
Subsequent Event [Member] | Canada [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 2 | ||||||||||||||||
Subsequent Event [Member] | Canada [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 9 | ||||||||||||||||
Subsequent Event [Member] | Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of consecutive quarterly installment | installment | 6 | 6 | |||||||||||||||
Subsequent Event [Member] | Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Imperial Tobacco Ltd. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of consecutive quarterly installment | installment | 7 | 7 | |||||||||||||||
Subsequent Event [Member] | Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Amount of security ordered to be furnished | CAD 226,000,000 | $ 171,000,000 | |||||||||||||||
Amount of security to be furnished in each consecutive quarterly installment | 37,600,000 | 28,500,000 | |||||||||||||||
Subsequent Event [Member] | Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Appellate Ruling [Member] | Imperial Tobacco Ltd. [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Amount of security ordered to be furnished | 758,000,000 | 574,000,000 | |||||||||||||||
Amount of security to be furnished in each consecutive quarterly installment | CAD 108,000,000 | $ 82,000,000 | |||||||||||||||
Subsequent Event [Member] | Chile [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 8 | ||||||||||||||||
Subsequent Event [Member] | Costa Rica [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 2 | ||||||||||||||||
Subsequent Event [Member] | Greece [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 | ||||||||||||||||
Subsequent Event [Member] | Italy [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 2 | ||||||||||||||||
Subsequent Event [Member] | Philippines [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 | ||||||||||||||||
Subsequent Event [Member] | Scotland [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 |
Contingencies (Health Care Cost
Contingencies (Health Care Cost Recovery Litigation) (Details) - Health Care Cost Recovery Actions [Member] $ in Millions | Apr. 14, 2014USD ($)patient | Oct. 17, 2008 | Mar. 13, 2008 | Feb. 26, 2008 | May. 25, 2007 | May. 09, 2007 | Oct. 27, 2015litigation_case | Oct. 30, 2014litigation_case | Oct. 30, 2013litigation_case |
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 15 | 15 | |||||||
Korea [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | $ | $ 53.7 | ||||||||
Damages sought, number of patients | patient | 3,484 | ||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Lagos State [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Kano State [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Gombe State [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Ovo State [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Nigeria [Member] | Pending Litigation [Member] | The Attorney General Of Ogun State [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, period of past reimbursements | 20 years | ||||||||
Damages sought, period of future reimbursements | 20 years | ||||||||
Subsequent Event [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 16 | ||||||||
Subsequent Event [Member] | Canada [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 10 | ||||||||
Subsequent Event [Member] | Korea [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 1 | ||||||||
Subsequent Event [Member] | Nigeria [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 5 |
Contingencies (Lights Cases) (D
Contingencies (Lights Cases) (Details) - Individual Lights Cases [Member] - litigation_case | Oct. 27, 2015 | Oct. 30, 2014 | Oct. 30, 2013 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 3 | ||
Subsequent Event [Member] | Chile [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Subsequent Event [Member] | Italy [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 |
Contingencies (Public Civil Act
Contingencies (Public Civil Actions) (Details) - Public Civil Actions [Member] - litigation_case | Oct. 27, 2015 | Oct. 30, 2014 | Oct. 30, 2013 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 3 | |
Subsequent Event [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | ||
Subsequent Event [Member] | Argentina [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Subsequent Event [Member] | Venezuela [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||
Effective tax rate | 27.60% | 29.80% | 28.70% | 29.20% | |
Impact on effective tax rate related to changes to repatriation assertions on certain foreign subsidiary historical earnings | $ 58 | ||||
United States [Member] | |||||
Income Taxes [Line Items] | |||||
Open Tax Year | 2009 and onward | ||||
Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Effective tax rate | 29.00% | ||||
Internal Revenue Service (IRS) [Member] | Altria [Member] | |||||
Income Taxes [Line Items] | |||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 13 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | Oct. 01, 2015 | Sep. 30, 2015 | Jan. 23, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||||
Short-term borrowings, carrying value | $ 1,007,000,000 | $ 1,208,000,000 | ||
Borrowings under committed credit facilities | 0 | |||
Committed credit facilities | 8,000,000,000 | |||
Revolving Credit Expiring February 10, 2015 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facilities no longer available | $ 2,000,000,000 | |||
Multi Year Revolving Credit Expiring February 28, 2019 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facilities no longer available | $ 2,500,000,000 | |||
Multi-year revolving credit, expiring October 25, 2016 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Committed credit facilities | $ 3,500,000,000 | |||
Subsequent Event [Member] | Multi Year Revolving Credit Expiring October 1, 2020 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Committed credit facilities | $ 3,500,000,000 |
Indebtedness (Long-Term Debt) (
Indebtedness (Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 27,900 | $ 28,247 |
Less current portion of long-term debt | 2,100 | 1,318 |
Long-term Debt | 25,800 | 26,929 |
U.S. Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 18,092 | 17,229 |
Due through | 2,044 | |
Interest rate, minimum | 1.125% | |
Interest rate, maximum | 6.375% | |
Interest rate, average | 3.78% | |
Euro Notes [Member] | Foreign Currency Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 7,634 | 9,161 |
Due through | 2,033 | |
Interest rate, minimum | 1.75% | |
Interest rate, maximum | 5.75% | |
Interest rate, average | 2.799% | |
Swiss Franc Notes [Member] | Foreign Currency Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 1,720 | 1,690 |
Due through | 2,024 | |
Interest rate, minimum | 0.75% | |
Interest rate, maximum | 2.00% | |
Interest rate, average | 1.216% | |
Other [Member] | Foreign Currency Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 454 | $ 167 |
Due through | 2,024 | |
Interest rate, average | 3.114% |
Indebtedness (Debt Issuances Du
Indebtedness (Debt Issuances During Current Period) (Details) - US Dollar Notes [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
1.250% US Dollar Notes Due August 2017 [Member] | |
Debt Instrument [Line Items] | |
Face Value | $ 500 |
Interest Rate | 1.25% |
Issuance | Aug. 1, 2015 |
Maturity | Aug. 31, 2017 |
3.375% US Dollar Notes Due August 2025 [Member] | |
Debt Instrument [Line Items] | |
Face Value | $ 750 |
Interest Rate | 3.375% |
Issuance | Aug. 1, 2015 |
Maturity | Aug. 31, 2025 |
Indebtedness (Credit Facilities
Indebtedness (Credit Facilities) (Details) | Sep. 30, 2015USD ($) |
Line of Credit Facility [Line Items] | |
Committed credit facilities | $ 8,000,000,000 |
Revolving Credit Expiring February 9, 2016 [Member] | |
Line of Credit Facility [Line Items] | |
Committed credit facilities | 2,000,000,000 |
Multi-year revolving credit, expiring February 28, 2020 [Member] | |
Line of Credit Facility [Line Items] | |
Committed credit facilities | 2,500,000,000 |
Multi-year revolving credit, expiring October 25, 2016 [Member] | |
Line of Credit Facility [Line Items] | |
Committed credit facilities | $ 3,500,000,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Sep. 30, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Capital lease obligations, carrying value | $ 13 |
Debt excluding short-term borrowings and capital lease obligations, carrying value | $ 27,887 |
Fair Value Measurements (Aggreg
Fair Value Measurements (Aggregate Fair Value of Derivative Financial Instruments, Debt and Contingent Consideration) (Details) $ in Millions | Sep. 30, 2015USD ($) |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | |
Assets: | |
Foreign exchange contracts | $ 0 |
Total assets | 0 |
Liabilities: | |
Debt | 29,044 |
Foreign exchange contracts | 0 |
Contingent consideration | 0 |
Total liabilities | 29,044 |
Significant Other Observable Inputs (Level 2) [Member] | |
Assets: | |
Foreign exchange contracts | 571 |
Total assets | 571 |
Liabilities: | |
Debt | 469 |
Foreign exchange contracts | 110 |
Contingent consideration | 0 |
Total liabilities | 579 |
Significant Unobservable Inputs (Level 3) [Member] | |
Assets: | |
Foreign exchange contracts | 0 |
Total assets | 0 |
Liabilities: | |
Debt | 0 |
Foreign exchange contracts | 0 |
Contingent consideration | 15 |
Total liabilities | 15 |
Fair Value [Member] | |
Assets: | |
Foreign exchange contracts | 571 |
Total assets | 571 |
Liabilities: | |
Debt | 29,513 |
Foreign exchange contracts | 110 |
Contingent consideration | 15 |
Total liabilities | $ 29,638 |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Earnings (Losses), Net of Tax) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Currency translation adjustments | $ (6,147) | $ (3,929) | $ (3,128) |
Pension and other benefits | (2,854) | (3,020) | (1,968) |
Derivatives accounted for as hedges | 74 | 123 | 74 |
Total accumulated other comprehensive losses | $ (8,927) | $ (6,826) | $ (5,022) |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Gross Amounts Recognized | $ 571 | $ 406 |
Gross Amount Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheet | 571 | 406 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | (96) | (77) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received/Pledged | (416) | (306) |
Net Amount | 59 | 23 |
Liabilities | ||
Gross Amounts Recognized | 110 | 151 |
Gross Amount Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheet | 110 | 151 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | (96) | (77) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received/Pledged | (4) | (63) |
Net Amount | $ 10 | $ 11 |
Investments in Unconsolidated73
Investments in Unconsolidated Subsidiaries (Narrative) (Details) - USD ($) $ in Millions | Dec. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated subsidiaries | $ 919 | $ 1,083 | |||
Dividends from unconsolidated subsidiaries | 87 | 107 | |||
Equity Method Investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Difference between equity method investment carrying value and book value | $ 1,417 | ||||
Equity Method Investments [Member] | Minimum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Difference between equity method investment carrying value and book value, amortization period | 3 years | ||||
Equity Method Investments [Member] | Maximum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Difference between equity method investment carrying value and book value, amortization period | 20 years | ||||
Equity Method Investment Goodwill [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated subsidiaries | $ 1,264 | ||||
EITA [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 49.00% | ||||
Purchase Price of Equity Method Investments | $ 625 | ||||
STAEM [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 25.00% | ||||
AITA Ownership Percentage in Société des Tabacs Algéro-Emiratie (“STAEM”) [Member] | Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 51.00% | ||||
Societe Nationale des Tabacs et Allumettes SpA [Member] | Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 49.00% | ||||
Megapolis [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 20.00% | ||||
Purchase Price of Equity Method Investments | $ 760 | ||||
Additional contingent consideration (up to $100 million) | $ 100 | ||||
Additional contingent consideration measurement period | 4 years | ||||
Notes receivable to unconsolidated subsidiaries | $ 100 | $ 100 | |||
Discounted liability | $ 86 | ||||
Other Affiliates [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated subsidiaries | $ 43 | $ 38 | |||
Other Affiliates [Member] | Minimum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 40.00% | ||||
Other Affiliates [Member] | Maximum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% |
Investments in Unconsolidated74
Investments in Unconsolidated Subsidiaries (Balance sheet and earnings activity) (Details) - Equity Method Investments [Member] - Eastern Europe Middle East And Africa [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Net revenues | $ 1,051 | $ 1,578 | $ 3,269 | $ 4,184 | |
Receivables | 404 | 404 | $ 407 | ||
Notes receivable | 107 | 107 | 100 | ||
Other Liabilities [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other liabilities | $ 99 | $ 99 | $ 93 |
Acquisitions and Other Busine75
Acquisitions and Other Business Arrangements (Details) $ in Millions | Oct. 26, 2015USD ($)shares | Sep. 30, 2015USD ($) | Jun. 30, 2015 | Sep. 30, 2013USD ($) | May. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | May. 31, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015IDR / shares |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Payment to acquire business | $ 0 | $ 110 | |||||||||
Purchase price activity for subsidiary shares from noncontrolling interests (Note 16) | 119 | $ 0 | |||||||||
INDONESIA | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Ownership percentage before transaction | 98.18% | ||||||||||
PT HM Sampoerna Tbk [Member] | INDONESIA | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Share price (in Rp. per share) | IDR / shares | IDR 77,000 | ||||||||||
Premium on share price (percent) | 1.349% | ||||||||||
Grupo Carso [Member] | Mexican tobacco business [Member] | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Ownership percentage by parent | 100.00% | ||||||||||
Estimated dividend payment to noncontrolling interest | $ 38 | ||||||||||
Dividends declared and paid | $ 38 | ||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 559 | ||||||||||
Grupo Carso [Member] | Mexican tobacco business [Member] | Affiliated Entity [Member] | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Payments to acquire additional interest in subsidiaries | $ 703 | ||||||||||
Purchase price adjustment period | 3 years | ||||||||||
Purchase price adjustment period, after close of purchase | 2 years | ||||||||||
Purchase price activity for subsidiary shares from noncontrolling interests (Note 16) | $ 113 | ||||||||||
Additional Interest In Subsidiaries, Adjusted Purchase Price | $ 590 | ||||||||||
Nicocigs Limited [Member] | United Kingdom [Member] | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||||||
Payment to acquire business | $ 103 | ||||||||||
Additional contingent payment, maximum | $ 46 | $ 77 | $ 46 | ||||||||
Period of consideration for performance targets related to acquisition (within two years of September 30, 2015) | 3 years | 2 years | |||||||||
Grupo Carso [Member] | Mexican tobacco business [Member] | Affiliated Entity [Member] | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 20.00% | ||||||||||
Subsequent Event [Member] | PT HM Sampoerna Tbk [Member] | INDONESIA | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Shares issued in transaction | shares | 264,209,711 | ||||||||||
Consideration received from transaction | $ 1,500 |