Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 1,554,584,344 | ||
Entity Public Float | $ 126 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues including excise taxes | $ 79,823 | $ 78,098 | $ 74,953 |
Excise taxes on products | 50,198 | 49,350 | 48,268 |
Net revenues (Notes 2 & 21) | 29,625 | 28,748 | 26,685 |
Cost of sales | 10,758 | 10,432 | 9,391 |
Gross profit | 18,867 | 18,316 | 17,294 |
Marketing, administration and research costs | 7,408 | 6,647 | 6,317 |
Amortization of intangibles | 82 | 88 | 74 |
Operating income | 11,377 | 11,581 | 10,903 |
Interest expense, net (Note 14) | 665 | 914 | 891 |
Pension and other employee benefit costs (Note 13) | 41 | 78 | 88 |
Earnings before income taxes | 10,671 | 10,589 | 9,924 |
Provision for income taxes (Note 11) | 2,445 | 4,307 | 2,768 |
Equity investments and securities (income)/loss, net | (60) | (59) | (94) |
Net earnings | 8,286 | 6,341 | 7,250 |
Net earnings attributable to noncontrolling interests | 375 | 306 | 283 |
Net earnings attributable to PMI | $ 7,911 | $ 6,035 | $ 6,967 |
Per share data (Note 10): | |||
Basic earnings per share (in dollars per share) | $ 5.08 | $ 3.88 | $ 4.48 |
Diluted earnings per share (in dollars per share) | $ 5.08 | $ 3.88 | $ 4.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 8,286 | $ 6,341 | $ 7,250 |
Change in currency translation adjustments: | |||
Unrealized gains (losses), net of income taxes of ($47) in 2018, $620 in 2017 and ($101) in 2016 | (812) | 330 | (14) |
(Gains)/losses transferred to earnings, net of income taxes of $0 in 2018, 2017 and 2016 | 0 | (2) | 5 |
Change in net loss and prior service cost: | |||
Net gains (losses) and prior service costs, net of income taxes of $65 in 2018, ($17) in 2017 and $78 in 2016 | (1,046) | 523 | (460) |
Amortization of net losses, prior service costs and net transition costs, net of income taxes of ($43) in 2018, ($31) in 2017 and ($43) in 2016 | 218 | 228 | 224 |
Change in fair value of derivatives accounted for as hedges: | |||
Gains (losses) recognized, net of income taxes of ($4) in 2018, $8 in 2017 and ($4) in 2016 | 24 | (44) | 8 |
(Gains) losses transferred to earnings, net of income taxes of $5 in 2018, $2 in 2017 and ($3) in 2016 | (31) | (11) | 30 |
Total other comprehensive earnings (losses) | (1,647) | 1,024 | (207) |
Total comprehensive earnings | 6,639 | 7,365 | 7,043 |
Less comprehensive earnings attributable to: | |||
Noncontrolling interests | 304 | 306 | 233 |
Comprehensive earnings attributable to PMI | $ 6,335 | $ 7,059 | $ 6,810 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Income taxes on currency translation adjustments in earnings | $ (47) | $ 620 | $ (101) |
Foreign currency reclassification adjustment, tax effect | 0 | 0 | 0 |
Income taxes on net losses and prior service costs | 65 | (17) | 78 |
Income taxes on amortization of net losses, prior service costs and net transition costs | (43) | (31) | (43) |
Income taxes on loss/(gain) recognized from fair value of derivatives accounted for as hedges | (4) | 8 | (4) |
Income taxes on loss/(gain) transferred to earnings from fair value of derivatives accounted for as hedges | $ 5 | $ 2 | $ (3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 6,593 | $ 8,447 |
Trade receivables (less allowances of $25 in 2018 and $25 in 2017) | 2,950 | 3,194 |
Other receivables | 614 | 544 |
Inventories: | ||
Leaf tobacco | 2,318 | 2,606 |
Other raw materials | 1,405 | 1,563 |
Finished product | 5,081 | 4,637 |
Total inventory, net | 8,804 | 8,806 |
Other current assets | 481 | 603 |
Total current assets | 19,442 | 21,594 |
Property, plant and equipment, at cost: | ||
Land and land improvements | 600 | 639 |
Buildings and building equipment | 3,975 | 3,989 |
Machinery and equipment | 9,096 | 8,976 |
Construction in progress | 886 | 962 |
Total property, plant and equipment, at cost | 14,557 | 14,566 |
Less: accumulated depreciation | 7,356 | 7,295 |
Total property, plant and equipment, net | 7,201 | 7,271 |
Goodwill (Note 3) | 7,189 | 7,666 |
Other intangible assets, net (Note 3) | 2,278 | 2,432 |
Investments in unconsolidated subsidiaries and equity securities (Notes 4 & 16 ) | 1,269 | 1,074 |
Deferred income taxes | 977 | 1,007 |
Other assets | 1,445 | 1,924 |
Total Assets | 39,801 | 42,968 |
Liabilities | ||
Short-term borrowings (Note 7) | 730 | 499 |
Current portion of long-term debt (Note 7) | 4,054 | 2,506 |
Accounts payable | 2,068 | 2,242 |
Accrued liabilities: | ||
Marketing and selling | 732 | 708 |
Taxes, except income taxes | 5,088 | 5,324 |
Employment costs | 794 | 856 |
Dividends payable | 1,783 | 1,669 |
Other | 1,366 | 1,346 |
Income taxes (Note 11) | 576 | 812 |
Total current liabilities | 17,191 | 15,962 |
Long-term debt (Note 7) | 26,975 | 31,334 |
Deferred income taxes | 898 | 799 |
Employment costs | 3,083 | 2,271 |
Income taxes and other liabilities (Note 11) | 2,393 | 2,832 |
Total liabilities | 50,540 | 53,198 |
Contingencies (Note 18) | ||
Stockholders’ (Deficit) Equity | ||
Common stock, no par value (2,109,316,331 shares issued in 2018 and 2017) | 0 | 0 |
Additional paid-in capital | 1,939 | 1,972 |
Earnings reinvested in the business | 31,014 | 29,859 |
Accumulated other comprehensive losses | (10,111) | (8,535) |
Total stockholders' equity before treasury stock | 22,842 | 23,296 |
Less: cost of repurchased stock (554,736,610 and 556,098,569 shares in 2018 and 2017, respectively) | 35,301 | 35,382 |
Total PMI stockholders’ deficit | (12,459) | (12,086) |
Noncontrolling interests | 1,720 | 1,856 |
Total stockholders’ deficit | (10,739) | (10,230) |
Total Liabilities and Stockholders’ (Deficit) Equity | $ 39,801 | $ 42,968 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 25 | $ 25 |
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) | 554,736,610 | 556,098,569 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||||
Net earnings | $ 8,286 | $ 6,341 | $ 7,250 | |
Adjustments to reconcile net earnings to operating cash flows: | ||||
Depreciation and amortization | 989 | 875 | 743 | |
Deferred income tax (benefit) provision | (100) | (501) | 182 | |
Cash effects of changes in: | ||||
Receivables, net | 53 | (92) | (1,009) | |
Inventories | (613) | 730 | (695) | |
Accounts payable | (51) | 425 | 373 | |
Accrued liabilities and other current assets | 910 | (554) | 1,477 | |
Income taxes | (135) | 1,370 | (209) | |
Pension plan contributions | (110) | (66) | (191) | |
Other | 249 | 384 | 156 | |
Net cash provided by operating activities | 9,478 | 8,912 | 8,077 | |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||||
Capital expenditures | (1,436) | (1,548) | (1,172) | |
Investments in unconsolidated subsidiaries and equity securities | (63) | (111) | (41) | |
Net investment hedges | (1,527) | |||
Net investment hedges | 416 | 295 | ||
Other | 85 | 103 | 84 | |
Net cash used in investing activities | (998) | (3,083) | (834) | |
Short-term borrowing activity by original maturity: | ||||
Net issuances (repayments) - maturities of 90 days or less | 255 | (127) | (12) | |
Issuances - maturities longer than 90 days | 0 | 1,634 | 0 | |
Repayments - maturities longer than 90 days | 0 | (1,634) | 0 | |
Long-term debt proceeds | 0 | 6,850 | 3,536 | |
Long-term debt repaid | (2,484) | (2,551) | (2,393) | |
Dividends paid | (6,885) | (6,520) | (6,378) | |
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 6) | (81) | |||
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 6) | 5 | 7 | ||
Other | (456) | (426) | (173) | |
Net cash used in financing activities | (9,651) | (2,769) | (5,413) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (685) | 1,085 | (965) | |
Cash, cash equivalents and restricted cash: | ||||
Increase (Decrease) | [1] | (1,856) | 4,145 | 865 |
Balance at beginning of year | [1] | 8,476 | 4,331 | 3,466 |
Balance at end of year | [1] | 6,620 | 8,476 | 4,331 |
Cash Paid: | ||||
Interest | 882 | 1,050 | 1,052 | |
Income taxes | $ 2,749 | $ 3,403 | $ 2,829 | |
[1] | Following the adoption of Financial Accounting Standards Update ASU 2016-18, "Statement of Cash Flows: Restricted Cash," the amounts for cash and cash equivalents shown above include restricted cash of $27 million, $29 million and $92 million as of December 31, 2018, 2017 and 2016, respectively, which were included in other current assets in the consolidated balance sheets. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | |||
Restricted cash | $ 27 | $ 29 | $ 92 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity - 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, 2015 | $ (11,476) | $ 0 | $ 1,929 | $ 29,842 | $ (9,402) | $ (35,613) | $ 1,768 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 7,250 | 6,967 | 283 | ||||
Other comprehensive earnings (losses), net of income taxes | (207) | (157) | (50) | ||||
Issuance of stock awards | 160 | 37 | 123 | ||||
Dividends declared ($4.49 in 2018, $4.22 in 2017, and $4.12 in 2016, in dollars per share) | (6,412) | (6,412) | |||||
Payments to noncontrolling interests | (219) | (219) | |||||
Other (Note 6) | 4 | (2) | 6 | ||||
Ending balance at Dec. 31, 2016 | (10,900) | 0 | 1,964 | 30,397 | (9,559) | (35,490) | 1,788 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 6,341 | 6,035 | 306 | ||||
Other comprehensive earnings (losses), net of income taxes | 1,024 | 1,024 | |||||
Issuance of stock awards | 128 | 20 | 108 | ||||
Dividends declared ($4.49 in 2018, $4.22 in 2017, and $4.12 in 2016, in dollars per share) | (6,573) | (6,573) | |||||
Payments to noncontrolling interests | (255) | (255) | |||||
Other (Note 6) | 5 | (12) | 17 | ||||
Ending balance at Dec. 31, 2017 | (10,230) | 0 | 1,972 | 29,859 | (8,535) | (35,382) | 1,856 |
Increase (Decrease) in Stockholders' (Deficit) Equity [Roll Forward] | |||||||
Net earnings | 8,286 | 7,911 | 375 | ||||
Other comprehensive earnings (losses), net of income taxes | (1,647) | (1,572) | (75) | ||||
Issuance of stock awards | 128 | 47 | 81 | ||||
Dividends declared ($4.49 in 2018, $4.22 in 2017, and $4.12 in 2016, in dollars per share) | (6,994) | (6,994) | |||||
Payments to noncontrolling interests | (435) | (435) | |||||
Adoption of new accounting standards (Note 21) | 238 | 238 | |||||
Other (Note 6) | (85) | (80) | (4) | (1) | |||
Ending balance at Dec. 31, 2018 | $ (10,739) | $ 0 | $ 1,939 | $ 31,014 | $ (10,111) | $ (35,301) | $ 1,720 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 1.14 | $ 1.14 | $ 1.14 | $ 1.07 | $ 1.07 | $ 1.07 | $ 1.04 | $ 1.04 | $ 4.49 | $ 4.22 | $ 4.12 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation: Background Philip Morris International Inc. is a holding company incorporated in Virginia, U.S.A., whose subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other nicotine-containing products, including reduced-risk 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. Reduced-risk products ("RRPs") is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continued smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. Basis of presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of net revenues and expenses during the reporting periods. Significant estimates and assumptions include, among other things: pension and benefit plan assumptions; useful lives and valuation assumptions of goodwill and other intangible assets; marketing programs, and income taxes. Actual results could differ from those estimates. The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. All intercompany transactions and balances have been eliminated. To provide a greater focus on both parts of PMI's business — combustible and reduced-risk products — and to support PMI's transformation towards a smoke-free future, effective January 1, 2018, PMI began managing its business in six reportable segments as follows: European Union; Eastern Europe; Middle East & Africa; South & Southeast Asia; East Asia & Australia; and Latin America & Canada. For further details, see Note 12. Segment Reporting . Certain prior years' amounts have been reclassified to conform with the current year's presentation, due primarily to new accounting guidance related to revenue recognition, pension costs and restricted cash and PMI’s decision to reorganize its reportable segments. For further details, see the consolidated statements of cash flows, Note 3. Goodwill and Other Intangible Assets, net , Note 4. Investments in Unconsolidated Subsidiaries and Other Related Party , Note 12. Segment Reporting, Note 13. Benefit Plans and Note 21. New Accounting Standards . The changes did not have a material impact on PMI's consolidated financial position, results of operations or cash flows in any of the periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Depreciation Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 15 years, and buildings and building improvements over periods up to 40 years. Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. Foreign currency translation PMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. Goodwill and non-amortizable intangible assets valuation PMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. Impairment of long-lived assets PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Impairment of investments in unconsolidated subsidiaries Investments in unconsolidated subsidiaries are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. PMI determines whether a loss is other than temporary by considering the length of time and extent to which the fair value of the equity investment has been less than the carrying amount, the financial condition of the equity investment, and the intent to retain the investment for a period of time is sufficient to allow for any anticipated recovery in market value. Income taxes Income taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. Inventories Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and other nicotine-containing products, including reduced-risk products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. In certain instances, PMI facilitates shipping and handling activities after control has transferred to the customer. PMI has elected to record all shipping and handling activities as costs to fulfill a contract. The shipping and handling costs that have not been incurred at the time revenue is recognized are accrued. The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration, where applicable. Such variable consideration is typically not constrained and is estimated based on the most likely amount that PMI expects to be entitled to under the terms of the contracts with customers, historical experience of discount or rebate redemption, where relevant, and the terms of any underlying discount or rebate programs, which may change from time to time as the business and product categories evolve. PMI has elected to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Estimated costs associated with warranty programs are generally provided for in cost of sales in the period the related revenues are recognized. On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU 2014-09, "Revenue from Contracts with Customers." For further details, see Note 21. New Accounting Standards . Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 9. Stock Plans . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net: The movements in goodwill were as follows: (in millions) European Union Eastern Europe Middle East & Africa South & Southeast Asia East Asia & Australia Latin America & Canada Total Balance at January 1, 2017 $ 1,238 $ 281 $ 91 $ 3,030 $ 566 $ 2,118 $ 7,324 Changes due to: Currency 181 40 11 (20 ) 1 129 342 Balances, December 31, 2017 1,419 321 102 3,010 567 2,247 7,666 Changes due to: Currency (62 ) (18 ) (15 ) (215 ) (31 ) (136 ) (477 ) Balances, December 31, 2018 $ 1,357 $ 303 $ 87 $ 2,795 $ 536 $ 2,111 $ 7,189 Goodwill primarily reflects PMI’s acquisitions in Canada, Colombia, Greece, Indonesia, Mexico, Pakistan and Serbia, as well as the business combination in the Philippines. Details of other intangible assets were as follows: December 31, 2018 December 31, 2017 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,269 $ 1,269 $ 1,323 $ 1,323 Amortizable intangible assets: Trademarks 19 years 1,488 $ 608 880 1,559 $ 575 984 Distribution networks 8 years 141 82 59 152 79 73 Other* 10 years 107 37 70 87 35 52 Total other intangible assets $ 3,005 $ 727 $ 2,278 $ 3,121 $ 689 $ 2,432 * Includes farmer contracts and intellectual property rights Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico. The decrease in the gross carrying amount of other intangible assets from December 31, 2017 , was due primarily to currency movements, partially offset by the purchase of additional intellectual property rights related to PMI's reduced-risk products. Amortization expense for each of the next five years is estimated to be $82 million or less, assuming no additional transactions occur that require the amortization of intangible assets. During the second quarter of 2018, 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. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries and Other Related Party | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | Investments in Unconsolidated Subsidiaries and Other Related Party: Investments in unconsolidated subsidiaries: At December 31, 2018 and 2017 , PMI had total investments in unconsolidated subsidiaries of $981 million and $1,074 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, dividends, capital contributions and movements in currency translation adjustments. The carrying value of our equity method investments at December 31, 2018 and 2017 , exceeded our share of the unconsolidated subsidiaries' book value by $835 million and $927 million , respectively. The difference between the investment carrying value and the amount of underlying equity in net assets, excluding $793 million and $873 million attributable to goodwill as of December 31, 2018 and 2017 , respectively, is being amortized on a straight-line basis over the underlying assets' estimated useful lives of 10 to 20 years . At December 31, 2018 and 2017 , PMI received year-to-date dividends from unconsolidated subsidiaries of $118 million and $120 million , respectively. PMI holds a 49% equity interest in United Arab Emirates-based Emirati Investors-TA (FZC) (“EITA”). PMI holds an approximate 25% economic interest in Société des Tabacs Algéro-Emiratie (“STAEM”), an Algerian joint venture that is 51% owned by EITA and 49% by the Algerian state-owned enterprise Management et Développement des Actifs et des Ressources Holding ("MADAR Holding"), formerly known as Société Nationale des Tabacs et Allumettes SpA. STAEM manufactures and distributes under license some of PMI’s brands. PMI holds a 23% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis, PMI's distributor in Russia. The initial investments in EITA and Megapolis Distribution BV were recorded at cost and are included in investments in unconsolidated subsidiaries and equity securities on the consolidated balance sheets. Other related party: United Arab Emirates-based Trans-Emirates Trading and Investments (FZC) ("TTI") holds a 33% non-controlling interest in Philip Morris Misr LLC ("PMM"), an entity incorporated in Egypt which is consolidated in PMI’s financial statements. PMM sells, under license, PMI brands in Egypt through an exclusive distribution agreement with a local entity that is also controlled by TTI. Amounts in the tables below have been updated to reflect the transactions with this other related party for all periods. Additionally net revenues in the table below have been updated for all periods to reflect the adoption of ASU 2014-09 "Revenue from Contracts with Customers." For further details, see Note 21. New Accounting Standards . Financial activity with unconsolidated subsidiaries and other related party: PMI’s net revenues with unconsolidated subsidiaries and the other related party were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Net revenues (a) $ 2,714 $ 2,521 $ 2,465 (a) Net revenues excludes excise taxes and VAT billed to customers. PMI’s balance sheet activity related to unconsolidated subsidiaries and the other related party was as follows: At December 31, (in millions) 2018 2017 Receivables $ 308 $ 358 The activity primarily related to agreements with PMI’s unconsolidated subsidiaries and the other related party within the Eastern Europe segment and the 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. |
Product Warranty
Product Warranty | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty | Product Warranty: PMI's IQOS devices are subject to standard product warranties generally for a period of 12 months from the date of purchase or such other periods as required by law. PMI generally provides in cost of sales for the estimated cost of warranty in the period the related revenue is recognized. PMI assesses the adequacy of its accrued product warranties and adjusts the amounts as necessary based on actual experience and changes in future estimates. Factors that affect product warranties may vary across markets but typically include product failure rates, logistics and service delivery costs, and warranty policies. PMI accounts for its product warranties within other accrued liabilities. At December 31, 2018 and December 31, 2017 , these amounts were as follows: At December 31, (in millions) 2018 2017 Balance at beginning of period $ 71 $ 51 Changes due to: Warranties issued 179 168 Settlements (183 ) (148 ) Balance at end of period $ 67 $ 71 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: On March 21, 2018, PMI acquired the remaining 49% interest in Tabacalera Costarricense, S.A. and Mendiola y Compañía, S.A. for a net purchase price of $95 million , which includes $2 million of contingent consideration. As a result, PMI now owns 100% of these Costa Rican affiliates. The purchase of the remaining 49% interest resulted in a decrease to PMI’s additional paid-in capital of $86 million . |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness: Short-Term Borrowings At December 31, 2018 and 2017 , PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2018 December 31, 2017 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ — — % $ — — % Bank loans 730 5.8 499 5.7 $ 730 $ 499 Given the mix of subsidiaries and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country. The fair values of PMI’s short-term borrowings at December 31, 2018 and 2017 , based upon current market interest rates, approximate the amounts disclosed above. Long-Term Debt At December 31, 2018 and 2017 , PMI’s long-term debt consisted of the following: December 31, (in millions) 2018 2017 U.S. dollar notes, 1.375% to 6.375% (average interest rate 3.328%), due through 2044 $ 20,819 $ 23,291 Foreign currency obligations: Euro notes, 0.625% to 3.125% (average interest rate 2.250%), due through 2037 8,656 8,997 Swiss franc notes, 0.750% to 2.000% (average interest rate 1.269%), due through 2024 1,374 1,376 Other (average interest rate 3.351%), due through 2024 180 176 31,029 33,840 Less current portion of long-term debt 4,054 2,506 $ 26,975 $ 31,334 Other debt: Other foreign currency debt above includes mortgage debt in Switzerland and capital lease obligations at December 31, 2018 and December 31, 2017 . Debt Issuances Outstanding: PMI’s debt issuances outstanding at December 31, 2018 , were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $750 1.875% November 2013 January 2019 U.S. dollar notes $700 1.625% February 2017 February 2019 U.S. dollar notes $500 1.375% February 2016 February 2019 U.S. dollar notes $750 1.875% November 2017 November 2019 U.S. dollar notes $300 Floating February 2017 February 2020 U.S. dollar notes $1,000 2.000% February 2017 February 2020 U.S. dollar notes $1,000 4.500% March 2010 March 2020 U.S. dollar notes $750 1.875% February 2016 February 2021 U.S. dollar notes $350 4.125% May 2011 May 2021 U.S. dollar notes $750 2.900% November 2011 November 2021 U.S. dollar notes $500 2.625% February 2017 February 2022 U.S. dollar notes $750 2.375% August 2017 August 2022 U.S. dollar notes $750 2.500% August 2012 August 2022 U.S. dollar notes $750 2.500% November 2017 November 2022 U.S. dollar notes $600 2.625% March 2013 March 2023 U.S. dollar notes $500 2.125% May 2016 May 2023 U.S. dollar notes $500 3.600% November 2013 November 2023 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $500 3.125% November 2017 March 2028 (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (a) $500 4.250% May 2016 November 2044 EURO notes (b) €750 (approximately $951) 2.125% May 2012 May 2019 EURO notes (b) €1,250 (approximately $1,621) 1.750% March 2013 March 2020 EURO notes (b) €750 (approximately $1,029) 1.875% March 2014 March 2021 EURO notes (b) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (b) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (b) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (b) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (b) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (b) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (b) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (b) €500 (approximately $582) 1.875% November 2017 November 2037 Swiss franc notes (b) CHF200 (approximately $217) 0.875% March 2013 March 2019 Swiss franc notes (b) CHF275 (approximately $311) 0.750% May 2014 December 2019 Swiss franc notes (b) CHF325 (approximately $334) 1.000% September 2012 September 2020 Swiss franc notes (b) CHF300 (approximately $335) 2.000% December 2011 December 2021 Swiss franc notes (b) CHF250 (approximately $283) 1.625% May 2014 May 2024 (a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. The net proceeds from the sale of the securities listed in the table above were used for general corporate purposes, including working capital requirements and repurchase of PMI's common stock until 2015. Aggregate maturities: Aggregate maturities of long-term debt are as follows: (in millions) 2019 $ 4,054 2020 4,074 2021 3,024 2022 2,756 2023 1,602 2024-2028 6,913 2029-2033 1,147 Thereafter 7,698 31,268 Debt discounts (239 ) Total long-term debt $ 31,029 See Note 16. Fair Value Measurements for additional disclosures related to the fair value of PMI’s debt. Credit Facilities On January 29, 2018, PMI entered into an agreement to extend the term of its $2.0 billion 364 -day revolving credit facility from February 6, 2018 to February 5, 2019. At December 31, 2018 , PMI’s total committed credit facilities and commercial paper outstanding were as follows: Type (in billions of dollars) Committed Commercial 364-day revolving credit, expiring February 5, 2019 $ 2.0 Multi-year revolving credit, expiring February 28, 2021 2.5 Multi-year revolving credit, expiring October 1, 2022 3.5 Total facilities $ 8.0 Commercial paper outstanding $ — At December 31, 2018 , there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing. On January 28, 2019, PMI entered into an agreement to extend the term of its $2.0 billion 364 -day revolving credit facility from February 5, 2019, to February 4, 2020. Each of these facilities requires PMI to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“consolidated EBITDA”) to consolidated interest expense of not less than 3.5 to 1.0 on a rolling four-quarter basis. At December 31, 2018 , PMI’s ratio calculated in accordance with the agreements was 10.5 to 1.0. These facilities do not include any credit rating triggers, material adverse change clauses or any provisions that could require PMI to post collateral. The terms “consolidated EBITDA” and “consolidated interest expense,” both of which include certain adjustments, are defined in the facility agreements previously filed with the Securities and Exchange Commission. In addition to the committed credit facilities discussed above, certain subsidiaries maintain short-term credit arrangements to meet their respective working capital needs. These credit arrangements, which amounted to approximately $3.3 billion at December 31, 2018 , and $2.8 billion at December 31, 2017 , are for the sole use of the subsidiaries. Borrowings under these arrangements amounted to $730 million at December 31, 2018 , and $499 million at December 31, 2017 . |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock: Shares of authorized common stock are 6.0 billion ; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2016 2,109,316,331 (559,972,262 ) 1,549,344,069 Issuance of stock awards 2,041,478 2,041,478 Balances, December 31, 2016 2,109,316,331 (557,930,784 ) 1,551,385,547 Issuance of stock awards 1,832,215 1,832,215 Balances, December 31, 2017 2,109,316,331 (556,098,569 ) 1,553,217,762 Issuance of stock awards 1,361,959 1,361,959 Balances, December 31, 2018 2,109,316,331 (554,736,610 ) 1,554,579,721 At December 31, 2018 , 29,594,929 shares of common stock were reserved for stock awards under PMI’s stock plans, and 250 million shares of preferred stock, without par value, were authorized but unissued. PMI currently has no plans to issue any shares of preferred stock. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Stock Plans | Stock Plans: In May 2017, PMI’s shareholders approved the Philip Morris International Inc. 2017 Performance Incentive Plan (the “2017 Plan”). The 2017 Plan replaced the 2012 Performance Incentive Plan, and there will be no additional grants under the replaced plan. Under the 2017 Plan, PMI may grant to eligible employees restricted shares and restricted share units, performance-based cash incentive awards and performance-based equity awards. Up to 25 million shares of PMI’s common stock may be issued under the 2017 Plan. At December 31, 2018 , shares available for grant under the 2017 Plan were 22,911,850 . In May 2017, PMI’s shareholders also approved the Philip Morris International Inc. 2017 Stock Compensation Plan for Non-Employee Directors (the “2017 Non-Employee Directors Plan”). The 2017 Non-Employee Directors Plan replaced the 2008 Stock Compensation Plan for Non-Employee Directors, and there will be no additional grants under the replaced plan. A non-employee director is defined as a member of the PMI Board of Directors who is not a full-time employee of PMI or of any corporation in which PMI owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation. Up to 1 million shares of PMI common stock may be awarded under the 2017 Non-Employee Directors Plan. At December 31, 2018 , shares available for grant under the plan were 974,344 . Restricted share unit (RSU) awards PMI may grant RSU awards to eligible employees; recipients may not sell, assign, pledge or otherwise encumber such awards. Such awards are subject to forfeiture if certain employment conditions are not met. RSU awards generally vest on the third anniversary of the grant date. RSU awards do not carry voting rights, although they do earn dividend equivalents. During 2018 , the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2018 3,612,400 $ 89.65 Granted 1,288,700 100.19 Vested (1,451,876 ) 83.29 Forfeited (130,429 ) 96.24 Balance at December 31, 2018 3,318,795 $ 96.26 During the years ended December 31, 2018 , 2017 and 2016 , the weighted-average grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Weighted-Average Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2018 $ 129 $ 100.19 $ 114 2017 $ 119 $ 98.59 $ 111 2016 $ 108 $ 89.03 $ 126 The fair value of the RSU awards at the date of grant is amortized to expense over the restriction period, typically three years after the date of the award, or upon death, disability or reaching the age of 58 . As of December 31, 2018 , PMI had $118 million of total unrecognized compensation costs related to non-vested RSU awards. These costs are expected to be recognized over a weighted-average period of two years, or upon death, disability or reaching the age of 58 . During the years ended December 31, 2018 , 2017 and 2016 , share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2018 1,451,876 $ 121 $ 149 2017 2,022,856 $ 158 $ 208 2016 2,302,525 $ 202 $ 210 Performance share unit (PSU) awards PMI may grant PSU awards to certain executives; recipients may not sell, assign, pledge or otherwise encumber such awards. The PSU awards require the achievement of certain performance factors, which are predetermined at the time of grant, over a three -year performance cycle. PMI’s performance metrics consist of PMI’s Total Shareholder Return (TSR) relative to a predetermined peer group and on an absolute basis ( 50% weight), PMI’s currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions ( 30% weight), and PMI’s performance against specific measures of PMI's transformation ( 20% weight). The aggregate of the weighted performance factors for the three metrics determines the percentage of PSUs that will vest at the end of the three -year performance cycle. The minimum percentage of PSUs that can vest is zero , with a target percentage of 100 and a maximum percentage of 200 . Each vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned. PSU awards do not carry voting rights. During 2018 , the activity for PSU awards was as follows: Number of Grant Date Grant Date Balance at January 1, 2018 821,030 $ 93.46 $ 116.16 Granted 401,500 100.69 118.98 Vested — — — Forfeited (27,560 ) 94.98 116.71 Balance at December 31, 2018 1,194,970 $ 95.85 $ 117.09 During the years ended December 31, 2018 , 2017 and 2016 , the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) PSU Grant Date Fair Value Subject to Other Performance Factors PSU Grant Date Fair Value Subject to TSR Performance Factor Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2018 $ 20 $ 100.69 $ 24 $ 118.98 $ 24 2017 $ 19 $ 98.29 $ 25 $ 128.72 $ 37 2016 $ 19 $ 89.02 $ 22 $ 104.60 $ 27 The grant date fair value of the PSU awards subject to the other performance factors was determined by using the average of the high and low market price of PMI’s stock at the date of the grant. The grant date fair value of the PSU market based awards subject to the TSR performance factor was determined by using the Monte Carlo simulation model. The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2018 , 2017 and 2016 : For the Years Ended December 31, 2018 2017 2016 Risk-free interest rate (a) 2.3 % 1.5 % 1.0 % Expected volatility (b) 19.6 % 15.8 % 17.5 % (a) Based on the U.S. Treasury yield curve. (b) Determined using a weighted-average of historical and implied volatility. The fair value of the PSU award at the date of grant is amortized to expense over the performance period, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58 . As of December 31, 2018 , PMI had $25 million of total unrecognized compensation cost related to non-vested PSU awards. This cost is recognized over a weighted-average performance cycle period of two years, or upon death, disability or reaching the age of 58 . During the years ended December 31, 2018 , 2017 and 2016 , there were no PSU awards that vested. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share: Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method. Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2018 2017 2016 Net earnings attributable to PMI $ 7,911 $ 6,035 $ 6,967 Less distributed and undistributed earnings attributable to share-based payment awards 16 14 19 Net earnings for basic and diluted EPS $ 7,895 $ 6,021 $ 6,948 Weighted-average shares for basic EPS 1,555 1,552 1,551 Plus contingently issuable performance stock units (PSUs) — 1 — Weighted-average shares for diluted EPS 1,555 1,553 1,551 For the 2018 , 2017 and 2016 computations, there were no antidilutive stock options. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Earnings before income taxes $ 10,671 $ 10,589 $ 9,924 Provision for income taxes: United States federal and state: Current $ 120 $ 1,662 $ (39 ) Deferred (113 ) (384 ) 293 Total United States 7 1,278 254 Outside United States: Current 2,425 3,146 2,625 Deferred 13 (117 ) (111 ) Total outside United States 2,438 3,029 2,514 Total provision for income taxes $ 2,445 $ 4,307 $ 2,768 In December 2017, the Tax Cuts and Jobs Act was signed into law. Accordingly, PMI recorded a provisional charge of $1.6 billion in its 2017 income tax provision, including a charge for the transition tax on accumulated foreign earnings of $1.4 billion (which represented the transition tax of $2.2 billion , net of a reversal of $0.7 billion of previously recorded deferred tax liabilities on part of its accumulated foreign earnings and other items of $0.1 billion ) and $0.2 billion due to the re-measurement of U.S. deferred tax assets and liabilities applying the U.S. federal corporate tax rate of 21%. PMI completed its analysis of the Tax Cuts and Jobs Act during 2018 and adjusted the 2017 provisional estimates to the final amounts based on its 2017 U.S. federal income tax return as filed. Accordingly, PMI recorded in its income tax provision a charge of $31 million representing a current income tax charge of $185 million , primarily due to an increase in its aggregate foreign cash position used to determine PMI's final 2017 transition tax liability, mostly offset by a deferred income tax benefit of $154 million primarily due to the recognition of deferred tax assets for net operating losses in the state of New York. Updates to the provisional estimates have been recorded in accordance with Staff Accounting Bulletin No. 118 ("SAB 118"). At December 31, 2017, PMI recorded an income tax payable of $1.7 billion attributable to the Tax Cuts and Jobs Act, of which $1.6 billion was recorded in "income taxes and other liabilities" on PMI's consolidated balance sheet. The income tax payable of $1.7 billion represented the transition tax of $2.2 billion , partially offset by foreign tax credits related to foreign withholding taxes previously paid of $0.5 billion . The income tax payable is due over an 8-year period beginning in 2018. In December 2018, PMI recorded an increase to income tax payable of $0.1 billion related to PMI’s transition tax liability, in accordance with SAB 118. At December 31, 2018 , $1.5 billion of PMI's remaining transition tax liability was recorded in "income taxes and other liabilities" on PMI's consolidated balance sheet. At December 31, 2018 , U.S. federal and foreign deferred income taxes have been provided on all accumulated earnings of PMI's foreign subsidiaries. In accordance with the alternatives provided by ASU 2018-02 "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," PMI has elected not to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive losses to retained earnings. PMI has made an accounting policy election to treat Global Intangible Low-Taxed Income ("GILTI") taxes as a current period expense rather than including these amounts in the measurement of deferred taxes. 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 2015 and onward . Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three to five years. Years still open to examination by foreign tax authorities in major jurisdictions include Germany ( 2015 onward), Indonesia ( 2014 onward), Russia ( 2015 onward) and Switzerland ( 2017 onward). It is reasonably possible that within the next 12 months certain tax examinations will close, which could result in a change in unrecognized tax benefits, along with related interest and penalties. An estimate of any possible change cannot be made at this time. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2018 2017 2016 Balance at January 1, $ 145 $ 79 $ 88 Additions based on tax positions related to the current year 10 71 13 Additions for tax positions of previous years 15 5 1 Reductions for tax positions of prior years (94 ) — (7 ) Reductions due to lapse of statute of limitations (3 ) (7 ) (14 ) Settlements (19 ) (4 ) (2 ) Other 2 1 — Balance at December 31, $ 56 $ 145 $ 79 Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2018 December 31, 2017 December 31, 2016 Unrecognized tax benefits $ 56 $ 145 $ 79 Accrued interest and penalties 12 23 15 Tax credits and other indirect benefits (14 ) (35 ) (31 ) Liability for tax contingencies $ 54 $ 133 $ 63 The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $41 million at December 31, 2018 . The remainder, if recognized, would principally affect deferred taxes. For the years ended December 31, 2018 , 2017 and 2016 , PMI recognized income (expense) in its consolidated statements of earnings of $4 million , $(11) million and $13 million , respectively, related to interest and penalties. The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Increase (decrease) resulting from: Foreign rate differences 1.3 (12.2 ) (12.6 ) Dividend repatriation cost 2.5 16.4 5.8 Global intangible low-taxed income 1.2 Net operating losses (1.1 ) Foreign derived intangible income (1.1 ) Other (0.9 ) 1.5 (0.3 ) Effective tax rate 22.9 % 40.7 % 27.9 % The 2018 effective tax rate decreased 17.8 percentage points to 22.9% . The change in the effective tax rate for 2018 , as compared to 2017 , was primarily due to the Tax Cuts and Jobs Act, which reduced the U.S. federal income tax rate from 35% to 21%, in addition to repatriation cost differences and earnings mix by taxing jurisdiction. The 2017 effective tax rate increased 12.8 percentage points to 40.7% . The change in the effective tax rate for 2017, as compared to 2016, was primarily due to the Tax Cuts and Jobs Act. In addition to the transition tax, which resulted in a net tax charge of $1.4 billion , the Tax Cuts and Jobs Act also included a reduction in the U.S. income tax rate from 35% to 21%, as of January 1, 2018. This change in income tax rate required a re-measurement of PMI's U.S. deferred tax assets and liabilities at December 31, 2017, resulting in a tax charge of $0.2 billion . The 2016 effective tax rate decreased 0.1 percentage point to 27.9% . The change in the effective tax rate for 2016, as compared to 2015, was primarily due to earnings mix by taxing jurisdiction and repatriation cost differences. The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2018 2017 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 193 $ 239 Accrued pension costs 390 334 Inventory 136 131 Accrued liabilities 138 117 Net operating losses 452 213 Foreign exchange — 91 Other 37 57 Total deferred income tax assets 1,346 1,182 Less: valuation allowance (257 ) (156 ) Deferred income tax assets, net of valuation allowance 1,089 1,026 Deferred income tax liabilities: Trade names (508 ) (546 ) Property, plant and equipment (222 ) (223 ) Unremitted earnings (123 ) (49 ) Foreign exchange (157 ) — Total deferred income tax liabilities (1,010 ) (818 ) Net deferred income tax assets $ 79 $ 208 At December 31, 2018, PMI has recorded deferred tax assets for net operating loss carryforwards of $452 million , with varying dates of expiration, primarily after 2023, including $87 million with an unlimited carryforward period. At December 31, 2018, PMI has recorded a valuation allowance of $257 million against deferred tax assets that do not meet the more-likely-than-not recognition threshold. The increases in deferred tax assets for net operating loss carryforwards and the valuation allowance during 2018 are primarily due to law changes associated with the Tax Cuts and Jobs Act, as discussed above. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting: PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other nicotine-containing products, including RRPs, in markets outside of the United States of America. Reportable segments for PMI are organized by geographic region and managed by segment managers who are responsible for the operating and financial results of the regions inclusive of all product categories sold in the region. Effective January 1, 2018, PMI began managing its business in six reportable segments. PMI’s reportable segments are the European Union; Eastern Europe; Middle East & Africa; South & Southeast Asia; East Asia & Australia; and Latin America & Canada. PMI records net revenues and operating income to its segments based upon the geographic area in which the customer resides. PMI’s chief operating decision maker evaluates segment performance and allocates resources based on regional operating income, which includes results from all product categories sold in each region. Effective January 1, 2018, PMI began using operating income to evaluate business segment performance and allocate resources, replacing operating companies income used previously. Interest expense, net, and provision for income taxes are centrally managed and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management. Information about total assets by segment is not disclosed because such information is not reported to or used by PMI’s chief operating decision maker. Segment goodwill and other intangible assets, net, are disclosed in Note 3. Goodwill and Other Intangible Assets, net. The accounting policies of the segments are the same as those described in Note 2. Summary of Significant Accounting Policies. On January 1, 2018, PMI adopted Financial Accounting Standards Update ASU 2014-09, "Revenue from Contracts with Customers." PMI adopted this standard retrospectively to each prior period presented. For further details on this standard and its impact on PMI, see Note 21. New Accounting Standards. The amounts presented for the reportable segments reflect this adoption. PMI disaggregates its net revenue from contracts with customers by both geographic location and product category for each of PMI's six reportable segments, as PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net revenues by segment were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Net revenues: European Union $ 9,298 $ 8,318 $ 8,162 Eastern Europe 2,921 2,711 2,484 Middle East & Africa 4,114 3,988 4,516 South & Southeast Asia 4,656 4,417 4,396 East Asia & Australia 5,580 6,373 4,285 Latin America & Canada 3,056 2,941 2,842 Net revenues $ 29,625 $ 28,748 $ 26,685 Total net revenues attributable to customers located in Japan, PMI's largest market in terms of net revenues, were $3.8 billion , $4.7 billion and $2.8 billion in 2018 , 2017 and 2016 , respectively. Total net revenues attributable to customers located in Indonesia were $3.1 billion , $3.2 billion and $3.2 billion in 2018 , 2017 and 2016 , respectively. PMI had one customer in the East Asia & Australia segment that accounted for 13% , 16% and 11% of PMI’s consolidated net revenues, and one customer in the European Union segment that accounted for 10% , 10% and 11% of PMI’s consolidated net revenues in 2018 , 2017 and 2016 , respectively. PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Combustible products: European Union $ 8,433 $ 8,048 $ 8,105 Eastern Europe 2,597 2,657 2,478 Middle East & Africa 3,732 3,893 4,513 South & Southeast Asia 4,656 4,417 4,396 East Asia & Australia 3,074 3,156 3,619 Latin America & Canada 3,037 2,937 2,841 Total combustible products $ 25,529 $ 25,107 $ 25,952 Reduced-risk products: European Union $ 865 $ 269 57 Eastern Europe 324 55 6 Middle East & Africa 382 94 4 South & Southeast Asia — — — East Asia & Australia 2,506 3,218 666 Latin America & Canada 19 4 1 Total reduced-risk products $ 4,096 $ 3,640 $ 733 Total PMI net revenues $ 29,625 $ 28,748 $ 26,685 Note: Sum of product categories or Regions might not foot to total PMI due to roundings. Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's cigarettes and other tobacco products combined. Other tobacco products primarily include roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos and do not include reduced-risk products. Net revenues related to reduced-risk products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's heated tobacco units, IQOS devices and related accessories, and other nicotine-containing products, which primarily include our e-vapor products. PMI recognizes revenue, when control is transferred to the customer, typically either upon shipment or delivery of goods. Other segment data were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Operating income: European Union $ 4,105 $ 3,691 $ 3,920 Eastern Europe 902 887 890 Middle East & Africa 1,627 1,884 1,990 South & Southeast Asia 1,747 1,514 1,474 East Asia & Australia 1,851 2,608 1,691 Latin America & Canada 1,145 997 938 Operating income $ 11,377 $ 11,581 $ 10,903 For the Years Ended December 31, (in millions) 2018 2017 2016 Depreciation expense: European Union $ 269 $ 213 $ 184 Eastern Europe 101 76 62 Middle East & Africa 105 88 88 South & Southeast Asia 154 153 147 East Asia & Australia 173 160 100 Latin America & Canada 94 85 79 896 775 660 Other 11 12 9 Total depreciation expense $ 907 $ 787 $ 669 For the Years Ended December 31, (in millions) 2018 2017 2016 Capital expenditures: European Union $ 813 $ 956 $ 665 Eastern Europe 136 97 69 Middle East & Africa 65 85 154 South & Southeast Asia 129 140 156 East Asia & Australia 215 87 24 Latin America & Canada 74 175 103 1,432 1,540 1,171 Other 4 8 1 Total capital expenditures $ 1,436 $ 1,548 $ 1,172 At December 31, (in millions) 2018 2017 2016 Long-lived assets: European Union $ 4,216 $ 4,130 $ 3,282 Eastern Europe 547 546 466 Middle East & Africa 362 430 400 South & Southeast Asia 1,297 1,419 1,413 East Asia & Australia 781 659 503 Latin America & Canada 779 885 765 Total long-lived assets 7,982 8,069 6,829 Other 664 1,126 750 Total property, plant and equipment, net and Other assets $ 8,646 $ 9,195 $ 7,579 Long-lived assets consist of non-current assets other than goodwill; other intangible assets, net; deferred tax assets, investments in unconsolidated subsidiaries and equity securities, and financial instruments. PMI's largest markets in terms of long-lived assets are Italy, Switzerland and Indonesia. Total long-lived assets located in Italy, which is reflected in the European Union segment above, were $1.1 billion , $1.2 billion and $0.7 billion at December 31, 2018 , 2017 and 2016 , respectively. Total long-lived assets located in Switzerland, which is reflected in the European Union segment above, were $1.0 billion , $0.9 billion and $0.9 billion at December 31, 2018 , 2017 and 2016 , respectively. Total long-lived assets located in Indonesia, which is reflected in the South & Southeast Asia segment above, were $0.7 billion , $0.8 billion and $0.8 billion at December 31, 2018 , 2017 and 2016 , respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans: Pension coverage for employees of PMI’s subsidiaries is provided, to the extent deemed appropriate, through separate plans, many of which are governed by local statutory requirements. In addition, PMI provides health care and other benefits to 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. In the fourth quarter of 2018, PMI elected to early adopt ASU 2018-14 "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The adoption of ASU 2018-14 did not have a material impact on PMI's consolidated financial position or results of operations. PMI adopted ASU 2017-07 "Compensation - Retirement Benefits" on January 1, 2018, retrospectively for all periods. Following adoption, the service cost component of net periodic benefit cost continues to be included within operating income, while all other cost components are included below operating income, within pension and other employee benefit costs. Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Net pension costs (income) $ (51 ) $ (20 ) $ (6 ) Net postemployment costs 80 85 83 Net postretirement costs 12 13 11 Total pension and other employee benefit costs $ 41 $ 78 $ 88 Pension and Postretirement Benefit Plans Obligations and Funded Status The postretirement health care plans are not funded. The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation and net amount accrued for PMI's postretirement health care plans, at December 31, 2018 and 2017 , were as follows: Pension (1) Postretirement (in millions) 2018 2017 2018 2017 Benefit obligation at January 1, $ 9,028 $ 8,387 $ 248 $ 227 Service cost 210 208 4 4 Interest cost 109 108 9 8 Benefits paid (218 ) (226 ) (8 ) (10 ) Settlement and curtailment 1 — — — Actuarial losses (gains) 210 (93 ) (34 ) 12 Currency (196 ) 621 (9 ) 7 Other 8 23 (1 ) — Benefit obligation at December 31, 9,152 9,028 209 248 Fair value of plan assets at January 1, 7,598 6,457 Actual return on plan assets (447 ) 742 Employer contributions 110 66 Employee contributions 24 40 Benefits paid (218 ) (226 ) Settlement and curtailment — — Currency (179 ) 519 Fair value of plan assets at December 31, 6,888 7,598 Net pension and postretirement liability recognized at December 31, $ (2,264 ) $ (1,430 ) $ (209 ) $ (248 ) (1) Primarily non-U.S. based defined benefit retirement plans. At December 31, 2018 , actuarial losses (gains) consisted of losses for experience differences related to the change in population profile, coupled with updated mortality table assumptions for the Swiss plan. At December 31, 2017 , actuarial losses (gains) consisted of gains due to changes in the pension indexation rate assumption for the Holland plan, which was partially offset by losses for experience differences related to the change in population profile, primarily for the Swiss plan. At December 31, 2018 and 2017 , the Swiss pension plan represented 60% and 57% of the benefit obligation, respectively, and approximately 57% of the fair value of plan assets for each of the years. At December 31, 2018 and 2017 , the U.S. pension plan represented 4% and 5% of the benefit obligation, respectively, and approximately 4% and 4% of the fair value of plan assets at December 31, 2018 and 2017 , respectively. At December 31, 2018 and 2017 , the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2018 2017 2018 2017 Other assets $ 37 $ 47 Accrued liabilities — employment costs (20 ) (26 ) $ (10 ) $ (10 ) Long-term employment costs (2,281 ) (1,451 ) (199 ) (238 ) $ (2,264 ) $ (1,430 ) $ (209 ) $ (248 ) The accumulated benefit obligation, which represents benefits earned to date, for the pension plans was $8,557 million and $8,496 million at December 31, 2018 and 2017 , respectively. For pension plans with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $7,641 million and $5,866 million , respectively, as of December 31, 2018 . The accumulated benefit obligation and fair value of plan assets were $6,953 million and $5,835 million , respectively, as of December 31, 2017 . For pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation and fair value of plan assets were $8,807 million and $6,504 million , respectively, as of December 31, 2018 . The projected benefit obligation and fair value of plan assets were $8,609 million and $7,135 million , respectively, as of December 31, 2017 . The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2018 2017 2018 2017 Discount rate 1.61 % 1.51 % 3.97 % 3.79 % Rate of compensation increase 1.86 1.65 Interest crediting rate 3.40 3.40 Health care cost trend rate assumed for next year 6.17 6.17 Ultimate trend rate 4.59 4.62 Year that rate reaches the ultimate trend rate 2040 2029 The discount rate for the largest pension plans is based on a yield curve constructed from a portfolio of high quality corporate bonds that produces a cash flow pattern equivalent to each plan’s expected benefit payments. The discount rate for the remaining plans is developed from local bond indices that match local benefit obligations as closely as possible. Components of Net Periodic Benefit Cost Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2018 , 2017 and 2016 : Pension Postretirement (in millions) 2018 2017 2016 2018 2017 2016 Service cost $ 210 $ 208 $ 207 $ 4 $ 4 $ 3 Interest cost 109 108 146 9 8 9 Expected return on plan assets (349 ) (326 ) (346 ) — — — Amortization: Net losses 172 186 186 4 5 2 Prior service cost 2 6 4 (1 ) — — Settlement and curtailment 15 6 4 — — — Net periodic pension and postretirement costs $ 159 $ 188 $ 201 $ 16 $ 17 $ 14 As of December 31, 2016, PMI elected to change the method used to calculate the service and interest cost components of the net periodic pension benefit costs. Historically, these costs were determined utilizing a single weighted-average discount rate based on a yield curve used to measure the benefit obligation at the beginning of the period. As of January 1, 2017, PMI utilized a full yield curve approach in the estimation of the service and interest costs by applying the specific spot rates along the yield curve to the relevant projected cash flows. Specifically, service costs were determined based on duration-specific spot rates applied to service cost cash flows, and interest costs were determined by applying duration-specific spot rates to the year-by-year projected benefit payments. PMI changed to the new method to provide a more precise measurement of service and interest costs by improving the correlation between the projected benefit cash flows to the corresponding spot rates along the yield curve. PMI accounted for this change as a change in accounting estimate on a prospective basis. This change did not affect the measurement of PMI’s pension plan obligations and did not have a material impact on PMI’s consolidated results of operations, financial position or cash flows. Settlement and curtailment charges were due primarily to employee severance and early retirement programs. The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2018 2017 2016 2018 2017 2016 Discount rate - service cost 1.92 % 1.68 % 1.81 % 3.79 % 3.68 % 4.45 % Discount rate - interest cost 1.25 1.27 1.81 3.79 3.68 4.45 Expected rate of return on plan assets 4.76 4.80 5.36 Rate of compensation increase 1.65 1.68 2.03 Interest crediting rate 3.40 3.40 3.00 Health care cost trend rate 6.17 7.15 6.23 PMI’s expected rate of return on pension plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. PMI and certain of its subsidiaries sponsor defined contribution plans. Amounts charged to expense for defined contribution plans totaled $66 million , $58 million and $56 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Plan Assets PMI’s investment strategy for pension plans is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, the target allocation of PMI’s plan assets is broadly characterized as approximately a 60% / 40% split between equity and debt securities. The strategy primarily utilizes indexed U.S. equity securities, international equity securities and investment-grade debt securities. PMI’s plans have no investments in hedge funds, private equity or derivatives. PMI attempts to mitigate investment risk by rebalancing between equity and debt asset classes once a year or as PMI’s contributions and benefit payments are made. The fair value of PMI’s pension plan assets at December 31, 2018 and 2017 , by asset category was as follows: Asset Category (in millions) At December 31, 2018 Quoted Prices In Active Markets for Identical Significant Significant (Level 3) Cash and cash equivalents $ 84 $ 84 Equity securities: U.S. securities 139 139 International securities 442 442 Investment funds (a) 5,508 3,595 $ 1,913 International government bonds 176 120 56 Corporate bonds 232 232 Other 19 19 Total assets in the fair value hierarchy $ 6,600 $ 4,631 $ 1,969 $ — Investment funds measured at net asset value (b) 288 Total assets $ 6,888 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% are invested in U.S. and international equities; 20% are invested in U.S. and international government bonds; 12% are invested in real estate and other money markets, and 11% are invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Asset Category (in millions) At December 31, 2017 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 17 $ 17 Equity securities: U.S. securities 146 146 International securities 518 518 Investment funds (a) 6,219 4,191 $ 2,028 International government bonds 119 119 Corporate bonds 247 247 Other 22 22 Total assets in the fair value hierarchy $ 7,288 $ 5,260 $ 2,028 $ — Investment funds measured at net asset value (b) 310 Total assets $ 7,598 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 60% were invested in U.S. and international equities; 20% were invested in U.S. and international government bonds; 10% were invested in real estate and other money markets, and 10% were invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. See Note 16. Fair Value Measurements for a discussion of the fair value of pension plan assets. PMI makes, and plans to make, contributions to the extent that they are tax deductible and to meet specific funding requirements of its funded pension plans. Currently, PMI anticipates making contributions of approximately $119 million in 2019 to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest and currency rates. The estimated future benefit payments from PMI pension plans at December 31, 2018 , are as follows: (in millions) 2019 $ 290 2020 315 2021 319 2022 329 2023 347 2024 - 2028 1,971 PMI's expected future annual benefit payments for its postretirement health care plans are estimated to be not material through 2028 . Postemployment Benefit Plans PMI and certain of its subsidiaries sponsor postemployment benefit plans covering substantially all salaried and certain hourly employees. The cost of these plans is charged to expense over the working life of the covered employees. Net postemployment costs were $158 million , $144 million and $166 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The amounts recognized in accrued postemployment costs on PMI's consolidated balance sheets at December 31, 2018 and 2017 , were $708 million and $671 million , respectively. The change in the liability is primarily due to actuarial losses of $147 in 2018 resulting from increased employee severance cost in Switzerland and countries in the European Union segment, coupled with the periodic expense, partially offset by cash payments. The accrued postemployment costs were determined using a weighted-average discount rate of 3.1% and 3.0% in 2018 and 2017 , respectively; an assumed ultimate annual weighted-average turnover rate of 3.2% and 2.6% in 2018 and 2017 , respectively; assumed compensation cost increases of 2.6% in 2018 and 2.3% in 2017 , and assumed benefits as defined in the respective plans. In accordance with local regulations, certain postemployment plans are funded. As a result, the accrued postemployment costs disclosed above are presented net of the related assets of $38 million and $33 million at December 31, 2018 and 2017 , respectively. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Comprehensive Earnings (Losses) The amounts recorded in accumulated other comprehensive losses at December 31, 2018 , consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,438 ) $ (41 ) $ (702 ) $ (4,181 ) Prior service cost (27 ) 3 — (24 ) Net transition obligation (4 ) — — (4 ) Deferred income taxes 379 20 164 563 Losses to be amortized $ (3,090 ) $ (18 ) $ (538 ) $ (3,646 ) The amounts recorded in accumulated other comprehensive losses at December 31, 2017 , consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (2,624 ) $ (80 ) $ (617 ) $ (3,321 ) Prior service cost (35 ) 4 — (31 ) Net transition obligation (5 ) — — (5 ) Deferred income taxes 327 28 186 541 Losses to be amortized $ (2,337 ) $ (48 ) $ (431 ) $ (2,816 ) The amounts recorded in accumulated other comprehensive losses at December 31, 2016 , consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,314 ) $ (73 ) $ (713 ) $ (4,100 ) Prior service cost (53 ) 4 — (49 ) Net transition obligation (5 ) — — (5 ) Deferred income taxes 350 24 215 589 Losses to be amortized $ (3,022 ) $ (45 ) $ (498 ) $ (3,565 ) The movements in other comprehensive earnings (losses) during the year ended December 31, 2018 , were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings as components of net periodic benefit cost: Amortization: Net losses $ 180 $ 5 $ 62 $ 247 Prior service cost — (1 ) — (1 ) Net transition obligation 1 — — 1 Other income/expense: Net losses 14 — — 14 Prior service cost — — — — Deferred income taxes (28 ) (1 ) (14 ) (43 ) 167 3 48 218 Other movements during the year: Net losses (1,008 ) 34 (147 ) (1,121 ) Prior service cost 8 — — 8 Deferred income taxes 80 (7 ) (8 ) 65 (920 ) 27 (155 ) (1,048 ) Total movements in other comprehensive earnings (losses) $ (753 ) $ 30 $ (107 ) $ (830 ) The movements in other comprehensive earnings (losses) during the year ended December 31, 2017 , were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings as components of net periodic benefit cost: Amortization: Net losses $ 175 $ 5 $ 68 $ 248 Prior service cost 5 — — 5 Other income/expense: Net losses 6 — — 6 Prior service cost — — — — Deferred income taxes (10 ) (1 ) (20 ) (31 ) 176 4 48 228 Other movements during the year: Net losses 509 (12 ) 28 525 Prior service cost 13 — — 13 Deferred income taxes (13 ) 5 (9 ) (17 ) 509 (7 ) 19 521 Total movements in other comprehensive earnings (losses) $ 685 $ (3 ) $ 67 $ 749 The movements in other comprehensive earnings (losses) during the year ended December 31, 2016 , were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings as components of net periodic benefit cost: Amortization: Net losses $ 193 $ 2 $ 62 $ 257 Prior service cost 6 — — 6 Other income/expense: Net losses 4 — — 4 Prior service cost — — — — Deferred income taxes (26 ) — (17 ) (43 ) 177 2 45 224 Other movements during the year: Net losses (437 ) (15 ) (65 ) (517 ) Prior service cost (18 ) — — (18 ) Deferred income taxes 55 4 19 78 (400 ) (11 ) (46 ) (457 ) Total movements in other comprehensive earnings (losses) $ (223 ) $ (9 ) $ (1 ) $ (233 ) |
Additional Information
Additional Information | 12 Months Ended |
Dec. 31, 2018 | |
Additional Information [Abstract] | |
Additional Information | Additional Information: For the Years Ended December 31, (in millions) 2018 2017 2016 Research and development expense $ 383 $ 453 $ 429 Advertising expense $ 896 $ 830 $ 405 Foreign currency net transaction losses $ 21 $ 49 $ 272 Interest expense $ 855 $ 1,096 $ 1,069 Interest income (190 ) (182 ) (178 ) Interest expense, net $ 665 $ 914 $ 891 Rent expense $ 312 $ 313 $ 284 Minimum rental commitments under non-cancelable operating leases in effect at December 31, 2018 , were as follows: (in millions) 2019 $ 147 2020 103 2021 73 2022 52 2023 43 Thereafter 354 $ 772 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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 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, Canadian dollar, Euro, Indonesian rupiah, Japanese yen, Mexican peso, Philippine peso, Russian ruble, Swiss franc and Turkish lira. At December 31, 2018 and 2017 , PMI had contracts with aggregate notional amounts of $27.4 billion and $26.1 billion , respectively. Of the $27.4 billion aggregate notional amount at December 31, 2018 , $3.2 billion related to cash flow hedges, $10.1 billion related to hedges of net investments in foreign operations and $14.1 billion related to other derivatives that primarily offset currency exposures on intercompany financing. Of the $26.1 billion aggregate notional amount at December 31, 2017 , $3.4 billion related to cash flow hedges, $11.3 billion related to hedges of net investments in foreign operations and $11.4 billion related to other derivatives that primarily offset currency exposures on intercompany financing. Effective January 1, 2018, PMI elected to early adopt Accounting Standard Update 2017-12 “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities,” which did not have a material impact on PMI’s consolidated financial position or results of operations. The fair value of PMI’s foreign exchange contracts included in the consolidated balance sheet as of December 31, 2018 and 2017 , were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2018 2017 Balance Sheet Classification 2018 2017 Foreign exchange contracts designated as hedging instruments Other current assets $ 54 $ 84 Other accrued liabilities $ 47 $ 197 Other assets 99 34 Other liabilities 525 880 Foreign exchange contracts not designated as hedging instruments Other current assets 67 22 Other accrued liabilities 46 37 Other assets — — Other liabilities 13 14 Total derivatives $ 220 $ 140 $ 631 $ 1,128 For the years ended December 31, 2018 , 2017 and 2016 , PMI's cash flow and net investment hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, millions) For the Year Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings 2018 2017 2016 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship Foreign exchange contracts $ 28 $ (52 ) $ 12 Net revenues $ 18 $ 60 $ (38 ) Cost of sales — 1 46 Marketing, administration and research costs 6 (7 ) (11 ) Interest expense, net (1 ) (41 ) (30 ) Derivatives in Net Investment Hedging Relationship Foreign exchange contracts 324 (1,644 ) 296 Total $ 352 $ (1,696 ) $ 308 $ 23 $ 13 $ (33 ) Cash Flow Hedges PMI has entered into foreign exchange contracts to hedge the foreign currency exchange and interest rate risks related to certain forecasted transactions. Gains and losses associated with qualifying cash flow hedge contracts is deferred as a component of accumulated other comprehensive losses until the underlying hedged transactions are reported in PMI’s consolidated statements of earnings. Amounts reclassified from other comprehensive losses into earnings as a result of the discontinuance of cash flow hedges when the originally forecasted transaction is no longer probable of occurring were not material during the periods presented. As of December 31, 2018 , PMI has hedged forecasted transactions for periods not exceeding the next eighteen months, with the exception of one foreign exchange contract that expires in May 2024 . The impact of these hedges is primarily included in operating cash flows on PMI’s consolidated statements 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, primarily of its Euro net assets. For the years ended December 31, 2018 , 2017 and 2016 , these hedges of net investments resulted in gains (losses), net of income taxes, of $521 million , $(1,725) million and $430 million , respectively, principally related to changes in the exchange rates between the Euro and U.S. dollar. These gains (losses) were reported as a component of accumulated other comprehensive losses within currency translation adjustments and were substantially offset by the losses and gains generated on the underlying assets. For the year ended December 31, 2018 , the gains for amounts excluded from the effectiveness testing recognized in earnings were $260 million and were accounted for in interest expense, net, on the consolidated statement of earnings. The premiums paid for, and settlements of, net investment hedges are included in investing cash flows on PMI’s consolidated statements of cash flows. Other Derivatives PMI has entered into 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 marketing, administration and research costs in PMI’s consolidated statements of earnings. For the years ended December 31, 2018 , 2017 and 2016 , the gains (losses) from contracts for which PMI did not apply hedge accounting were $405 million , $382 million and $(85) million , respectively. The gains (losses) from these contracts substantially offset the losses and gains generated by the underlying intercompany and third-party loans being hedged. As a result, for the years ended December 31, 2018 , 2017 and 2016 , these items impacted the consolidated statement of earnings as follows: (pre-tax, in millions) Derivatives not Designated as Hedging Instruments Statement of Earnings Classification of Gain/(Loss) Amount of Gain/(Loss) 2018 2017 2016 Foreign exchange contracts Interest expense, net $ 62 $ (60 ) $ (24 ) Total $ 62 $ (60 ) $ (24 ) Qualifying Hedging Activities Reported in Accumulated Other Comprehensive Losses Derivative gains or losses reported in accumulated other comprehensive losses are a result of qualifying hedging activity. Transfers of these gains or losses to earnings are offset by the corresponding gains or losses on the underlying hedged item. Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Gain as of January 1, $ 42 $ 97 $ 59 Derivative (gains)/losses transferred to earnings (31 ) (11 ) 30 Change in fair value 24 (44 ) 8 Gain as of December 31, $ 35 $ 42 $ 97 At December 31, 2018 , PMI expects $21 million of derivative gains that are included in accumulated other comprehensive losses to be reclassified to the consolidated statement of earnings within the next 12 months. These gains are expected to be substantially offset by the statement of earnings impact of the respective hedged transactions. Contingent Features PMI’s derivative instruments do not contain contingent features. Credit Exposure and Credit Risk PMI is exposed to credit loss in the event of non-performance by counterparties. While PMI does not anticipate non-performance, its risk is limited to the fair value of the financial instruments less any cash collateral received or pledged. PMI actively monitors its exposure to credit risk through the use of credit approvals and credit limits and by selecting and continuously monitoring a diverse group of major international banks and financial institutions as counterparties. Fair Value See Note 16. Fair Value Measurements and Note 19. Balance Sheet Offsetting for additional discussion of derivative financial instruments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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. In the fourth quarter of 2018, PMI elected to early adopt ASU 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The adoption of ASU 2018-13 did not have a material impact on PMI's consolidated financial position or results of operations. Equity Securities The fair value of PMI’s equity securities, which are determined by using quoted prices in active markets, have been classified within Level 1. 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 at December 31, 2018 and 2017 . See Note 15. Financial Instruments for additional discussion of derivative financial instruments. Pension Plan Assets The fair value of pension plan assets determined by using readily available quoted market prices in active markets has been classified within Level 1 of the fair value hierarchy at December 31, 2018 and 2017 . The fair value of pension plan assets determined by using quoted prices in markets that are not active has been classified within Level 2 at December 31, 2018 and 2017 . See Note 13. Benefit Plans for additional discussion of pension plan assets. Debt The fair value of PMI’s outstanding debt, which is utilized solely for disclosure purposes, is determined using quotes and market interest rates currently available to PMI for issuances of debt with similar terms and remaining maturities. The aggregate carrying value of PMI’s debt, excluding short-term borrowings and $33 million of capital lease obligations, was $30,996 million at December 31, 2018 . The aggregate carrying value of PMI’s debt, excluding short-term borrowings and $28 million of capital lease obligations, was $33,812 million at December 31, 2017 . The fair value of PMI's outstanding debt, excluding the aforementioned short-term borrowings and capital lease obligations, was classified within Level 1 and Level 2 at December 31, 2018 and 2017 . The aggregate fair values of PMI’s equity securities, derivative financial instruments, pension plan assets and debt as of December 31, 2018 , were as follows: (in millions) Fair Value At December 31, 2018 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Equity securities $ 288 $ 288 $ — $ — Foreign exchange contracts 220 $ — 220 — Pension plan assets 6,600 4,631 1,969 — Total assets in fair value hierarchy $ 7,108 $ 4,919 $ 2,189 $ — Pension plan assets measured at net asset value (a) 288 Total assets $ 7,396 Liabilities: Debt $ 31,162 $ 30,997 $ 165 $ — Foreign exchange contracts 631 — 631 — Total liabilities $ 31,793 $ 30,997 $ 796 $ — (a) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The aggregate fair values of PMI’s derivative financial instruments, pension plan assets and debt as of December 31, 2017 , were as follows: (in millions) Fair Value At December 31, 2017 Quoted Prices in Active Markets for Significant Other Significant Unobservable Inputs (Level 3) Assets: Foreign exchange contracts $ 140 $ — $ 140 $ — Pension plan assets 7,288 5,260 2,028 — Total assets in fair value hierarchy $ 7,428 $ 5,260 $ 2,168 $ — Pension plan assets measured at net asset value (a) 310 Total assets $ 7,738 Liabilities: Debt $ 35,856 $ 35,685 $ 171 $ — Foreign exchange contracts 1,128 — 1,128 — Total liabilities $ 36,984 $ 35,685 $ 1,299 $ — (a) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Losses | Accumulated Other Comprehensive Losses: PMI's accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At December 31, (in millions) 2018 2017 2016 Currency translation adjustments $ (6,500 ) $ (5,761 ) $ (6,091 ) Pension and other benefits (3,646 ) (2,816 ) (3,565 ) Derivatives accounted for as hedges 35 42 97 Total accumulated other comprehensive losses $ (10,111 ) $ (8,535 ) $ (9,559 ) Reclassifications from Other Comprehensive Earnings The movements in accumulated other comprehensive losses and the related tax impact, for each of the components above, that are due to current period activity and reclassifications to the income statement are shown on the consolidated statements of comprehensive earnings for the years ended December 31, 2018 , 2017 , and 2016 . For the years ended December 31, 2017 , and 2016 , $2 million and $(5) million of net currency translation adjustment gains/(losses) were transferred from other comprehensive earnings to marketing, administration and research costs in the consolidated statements of earnings, respectively, upon liquidation of subsidiaries. For additional information, see Note 13. Benefit Plans and Note 15. Financial Instruments for disclosures related to PMI's pension and other benefits and derivative financial instruments. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: Tobacco-Related Litigation Legal proceedings covering a wide range of matters are pending or threatened against us, and/or our subsidiaries, and/or our indemnitees in various jurisdictions. Our indemnitees include distributors, licensees, and others that have been named as parties in certain cases and that we have agreed to defend, as well as to pay costs and some or all of judgments, if any, that may be entered against them. Pursuant to the terms of the Distribution Agreement between Altria Group, Inc. ("Altria") and PMI, PMI will indemnify Altria and Philip Morris USA Inc. ("PM USA"), a U.S. tobacco subsidiary of Altria, for tobacco product claims based in substantial part on products manufactured by PMI or contract manufactured for PMI by PM USA, and PM USA will indemnify PMI for tobacco product claims based in substantial part on products manufactured by PM USA, excluding tobacco products contract manufactured for PMI. It is possible that there could be adverse developments in pending cases against us and our subsidiaries. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. Damages claimed in some of the tobacco-related litigation are significant and, in certain cases in Brazil, Canada, Israel and Nigeria, range into the billions of U.S. dollars. The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome. Much of the tobacco-related litigation is in its early stages, and litigation is subject to uncertainty. However, as discussed below, we have to date been largely successful in defending tobacco-related litigation. We and our subsidiaries record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, after assessing the information available to it (i) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases; and (iii) accordingly, no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases, if any. Legal defense costs are expensed as incurred. It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation. Nevertheless, although litigation is subject to uncertainty, we and each of our subsidiaries named as a defendant believe, and each has been so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid bases for appeal of adverse verdicts. 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, 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 pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of February 4, 2019 , February 9, 2018 and December 31, 2016 : Type of Case Number of Cases Pending as of February 4, 2019 Number of Cases Pending as of February 9, 2018 Number of Cases Pending as of December 31, 2016 Individual Smoking and Health Cases 55 57 64 Smoking and Health Class Actions 10 11 11 Health Care Cost Recovery Actions 16 16 16 Label-Related Class Actions 1 1 — Individual Label-Related Cases 7 1 3 Public Civil Actions 2 2 2 Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 491 Smoking and Health, Label-Related, Health Care Cost Recovery, and Public Civil Actions in which we and/or one of our subsidiaries and/or indemnitees were a defendant have been terminated in our favor. Thirteen cases have had decisions in favor of plaintiffs. Nine of these cases have subsequently reached final resolution in our favor and four remain on appeal. The table below lists the verdict and significant post-trial developments in the four 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 $273) 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. In March 2017, plaintiff filed an en banc appeal 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. Both appeals are still pending. Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Cecilia Létourneau Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Létourneau class on liability and awarded a total of CAD 131 million (approximately $100 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 Létourneau 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 $172.5 million) to cover both the Létourneau and Blais cases. The hearing for the merits appeal took place 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 $2.37 billion)). The trial court awarded CAD 90,000 (approximately $69,000) in punitive damages, allocating CAD 30,000 (approximately $23,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $763 million) of the compensatory damage award, CAD 200 million (approximately $153 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 Létourneau case, CAD 226 million (approximately $172.5 million). The hearing for the merits appeal took place in November 2016. (See below for further detail.) Date Location of Type of Verdict Post-Trial August 5, 2016 Argentina/Hugo Lespada Individual Action On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $2,960), plus interest, in compensatory and moral damages. On August 23, 2016, our subsidiary filed its notice of appeal. On October 31, 2017, the Civil and Commercial Court of Appeals of Mar del Plata ruled that plaintiff's claim was barred by the statute of limitations and it reversed the trial court's decision. On November 28, 2017, plaintiff filed an extraordinary appeal of the reversal of the trial court's decision to the Supreme Court of the Province of Buenos Aires. 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 February 4, 2019 , there were a number of smoking and health cases pending against us, our subsidiaries or indemnitees, as follows: • 55 cases brought by individual plaintiffs in Argentina ( 32 ), Brazil ( 8 ), Canada ( 2 ), Chile ( 4 ), Costa Rica ( 1 ), Italy ( 3 ), the Philippines ( 1 ), Poland ( 2 ), Turkey ( 1 ) and Scotland ( 1 ), compared with 57 such cases on February 9, 2018 , and 64 cases on December 31, 2016 ; and • 10 cases brought on behalf of classes of individual plaintiffs in Brazil ( 1 ) and Canada ( 9 ), compared with 11 such cases on February 9, 2018 , and 11 such cases on December 31, 2016 . In the 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 $273 ) 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. In February 2015, the appellate court unanimously dismissed plaintiff's appeal. In September 2015, plaintiff appealed to the Superior Court of Justice. In February 2017, the Chief Justice of the Superior Court of Justice denied plaintiff's appeal. In March 2017, plaintiff filed an en banc appeal 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. Both appeals are still pending. In the first class action pending in Canada, Cecilia Létourneau v. Imperial Tobacco Ltd., Rothmans, Benson & Hedges Inc. and JTI Macdonald Corp., Quebec Superior Court, Canada, filed in September 1998, 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 $100 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 Létourneau 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 $172.5 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 $28.7 million ) beginning in December 2015 through March 2017. See the Blais description for further detail concerning the security order. The Court of Appeal heard oral arguments on 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 $2.37 billion )). In addition, the trial court awarded CAD 90,000 (approximately $69,000 ) in punitive damages, allocating CAD 30,000 (approximately $23,000 ) 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 $763 million ) of the compensatory damage award into a trust within 60 days , CAD 200 million (approximately $153 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 Létourneau 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 $172.5 million ) to cover both the Létourneau 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 $28.7 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 $578 million ) in seven equal consecutive quarterly installments of approximately CAD 108 million (approximately $82.4 million ) beginning in December 2015 through June 2017. In March 2017, our subsidiary made its sixth and final quarterly installment of security for approximately CAD 37.6 million (approximately $28.7 million ) into a court trust. This payment is included in other assets on the consolidated balance sheets and in cash used in operating activities in the consolidated statements of cash flows. 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 heard oral arguments on 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, 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 February 4, 2019 , 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 16 such cases on February 9, 2018 and 16 such cases on December 31, 2016 . In the first health care cost recovery case pending in Canada, Her Majesty the Queen in Right of British Columbia v. Imperial Tobacco Limited, et al., Supreme Court, British Columbia, Vancouver Registry, Canada, filed January 24, 2001, we, our subsidiaries, our indemnitee (PM USA), and other members of the industry are defendants. The plaintiff, the government of the province of British Columbia, brought a claim based upon legislation enacted by the province authorizing the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, resulting from a “tobacco related wrong.” The Supreme Court of Canada has held that the statute is constitutional. We and certain other non-Canadian defendants challenged the jurisdiction of the court. The court rejected the jurisdictional challenge. Pre-trial discovery is ongoing. In the second health care cost recovery case filed in Canada, Her Majesty the Queen in Right of New Brunswick v. Rothmans Inc., et al., Court of Queen's Bench of New Brunswick, Trial Court, New Brunswick, Fredericton, Canada, filed March 13, 2008, we, our subsidiaries, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of New Brunswick based on legislation enacted in the province. This legislation is similar to the law introduced in British Columbia that authorizes the government to file a direct action against cigarette manufacturers to recover the health care costs it has incurred, and will incur, as a result of a “tobacco related wrong.” Pre-trial discovery is ongoing. In June 2017, the trial court set a trial date for November 4, 2019. In the third health care cost recovery case filed in Canada, Her Majesty the Queen in Right of Ontario v. Rothmans Inc., et al., Ontario Superior Court of Justice, Toronto, Canada , filed September 29, 2009, we, our subsidiaries, our indemnitees (PM USA and Altria), and other members of the industry are defendants. The claim was filed by the government of the province of Ontario based on le |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2018 | |
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 consolidated balance sheets. Collateral associated with these arrangements is in the form of cash and is unrestricted. See Note 15. Financial Instruments for disclosures related to PMI's derivative financial instruments. The effects of these derivative financial instrument assets and liabilities on PMI's consolidated balance sheets were as follows: (in millions) Gross Amounts Recognized Gross Amount Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received/Pledged At December 31, 2018 Assets Foreign exchange contracts $ 220 $ — $ 220 $ (124 ) $ (80 ) $ 16 Liabilities Foreign exchange contracts $ 631 $ — $ 631 $ (124 ) $ (427 ) $ 80 At December 31, 2017 Assets Foreign exchange contracts $ 140 $ — $ 140 $ (50 ) $ (78 ) $ 12 Liabilities Foreign exchange contracts $ 1,128 $ — $ 1,128 $ (50 ) $ (1,004 ) $ 74 |
Sale of Accounts Receivable
Sale of Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Sale of Accounts Receivable [Abstract] | |
Sale of Accounts Receivable | Sale of Accounts Receivable: To mitigate risk and enhance cash and liquidity management PMI sells trade receivables to unaffiliated financial institutions. These arrangements allow PMI to sell, on an ongoing basis, certain trade receivables without recourse. The trade receivables sold are generally short-term in nature and are removed from the consolidated balance sheets. PMI sells trade receivables under two types of arrangements, servicing and non-servicing. For servicing arrangements, PMI continues to service the sold trade receivables on an administrative basis and does not act on behalf of the unaffiliated financial institutions. When applicable, a servicing liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability were not material for the years ended December 31, 2018 and 2017 . Under the non-servicing arrangements, PMI does not provide any administrative support or servicing after the trade receivables have been sold to the unaffiliated financial institutions. Cumulative trade receivables sold, including excise taxes, for the years ended December 31, 2018 and 2017 , were $11.0 billion and $10.0 billion , respectively. PMI’s operating cash flows were positively impacted by the amount of the trade receivables sold and derecognized from the consolidated balance sheets, which remained outstanding with the unaffiliated financial institutions. The trade receivables sold that remained outstanding under these arrangements as of December 31, 2018 , 2017 and 2016 , were $1.0 billion , $1.1 billion and $0.7 billion , respectively. The net proceeds received are included in cash provided by operating activities in the consolidated statements of cash flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of trade receivables within marketing, administration and research costs in the consolidated statements of earnings. For the years ended December 31, 2018 , 2017 and 2016 the loss on sale of trade receivables was immaterial. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards: Recently adopted On January 1, 2018, PMI adopted Financial 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 these goods or services. PMI adopted ASU 2014-09 retrospectively to each prior period presented. PMI elected this transition method solely to reflect the change in excise tax presentation in all prior periods presented resulting from PMI’s accounting policy election to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Based on PMI’s assessment, the underlying principles of the new standard, relating to the measurement of revenue and the timing of recognition, are closely aligned with PMI’s current business model and practices. As a result, the adoption of ASU 2014-09 did not have a material impact on the consolidated financial position or results of operations. The adoption of ASU 2014-09 resulted in the following changes for net revenues to reflect the net presentation for revenues, excluding excise taxes, for the years ended December 31, 2017 and 2016 : (in millions) For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Net Revenues: As reported Retrospective Adoption As reported Retrospective Adoption Net revenues Excises taxes Net Net revenues Excises taxes Net revenues $ 78,098 $ 49,350 $ 28,748 $ 74,953 $ 48,268 $ 26,685 The change in presentation of net revenues also impacts segment disclosure requirements, primarily information for significant customers and geographic areas. While there is no change in the underlying business or customers, the amounts used to calculate what is disclosed are different following the change in presentation of revenues net of excise taxes and the associated segment revenues. Prior to this change, revenues including excise taxes were the basis for determining if sales to a customer or in a foreign country met the thresholds for disclosure. On the basis of revenues including excise taxes and due to the fact that PMI is not responsible for collecting excise taxes in certain markets, no customers met the requirements for disclosure. For the effects of the change in presentation using net revenue excluding excise taxes as the basis for determining the disclosure, see Note 12. Segment Reporting . On January 1, 2018, PMI adopted Financial Accounting Standard Update ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), on a prospective basis. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Additionally, ASU 2016-01 also changed certain disclosure requirements and other aspects of current U.S. GAAP. PMI identified certain cost investments, which are applicable to ASU 2016-01 requiring them to be measured at fair value with the changes in fair value recognized in net income. At January 1, 2018, the cumulative effect of this change resulted in an increase to investments in unconsolidated subsidiaries and equity securities, deferred income tax liability and earnings reinvested in the business of $301 million , $63 million and $238 million , respectively. Recently issued On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. PMI has identified its lease management system and has identified and evaluated the applicable leases. In addition to the guidance in ASU 2016-02, PMI has evaluated ASU 2018-11, which was issued in July 2018 and provides an optional transitional method. As a result of this evaluation, PMI elected to use the optional transition method, which allows companies to use the effective date as the date of initial application on transition and not adjust comparative period financial information or make the new required disclosures for periods prior to the effective date. Additionally, PMI elected to use the hindsight practical expedient, as well as the package of practical expedients permitted under the transition guidance within the new standard. Upon adoption, PMI recognized lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominately all of its operating leases in place at that time. At January 1, 2019, PMI's adoption of ASU 2016-02 resulted in an increase of approximately $0.7 billion on its assets and liabilities in its statement of financial position. ASU 2016-02 did not have a material impact on its results of operations or cash flows. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited): 2018 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,896 $ 7,726 $ 7,504 $ 7,499 Gross profit $ 4,281 $ 4,982 $ 4,886 $ 4,718 Net earnings attributable to PMI $ 1,556 $ 2,198 $ 2,247 $ 1,910 Per share data: Basic EPS $ 1.00 $ 1.41 $ 1.44 $ 1.23 Diluted EPS $ 1.00 $ 1.41 $ 1.44 $ 1.23 Dividends declared $ 1.07 $ 1.14 $ 1.14 $ 1.14 2017 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,064 $ 6,917 $ 7,473 $ 8,294 Gross profit $ 3,887 $ 4,398 $ 4,738 $ 5,293 Net earnings attributable to PMI $ 1,590 $ 1,781 $ 1,970 $ 694 Per share data: Basic EPS $ 1.02 $ 1.14 $ 1.27 $ 0.44 Diluted EPS $ 1.02 $ 1.14 $ 1.27 $ 0.44 Dividends declared $ 1.04 $ 1.04 $ 1.07 $ 1.07 Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | The consolidated financial statements include PMI, as well as its wholly owned and majority-owned subsidiaries. Investments in which PMI exercises significant influence (generally 20%-50% ownership interest) are accounted for under the equity method of accounting. Investments not accounted for under the equity method of accounting are measured at fair value, if it is readily determinable, with changes in fair value recognized in net income. All intercompany transactions and balances have been eliminated. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Depreciation | Depreciation Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 15 years, and buildings and building improvements over periods up to 40 years. |
Employee benefit plans | Employee benefit plans PMI provides a range of benefits to its employees and retired employees, including pensions, postretirement health care and postemployment benefits (primarily severance). PMI records annual amounts relating to these plans based on calculations specified under U.S. GAAP. PMI recognizes the funded status of its defined pension and postretirement plans on the consolidated balance sheets. The funded status is measured as the difference between the fair value of the plans assets and the benefit obligation. PMI measures the plan assets and liabilities at the end of the fiscal year. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For the postretirement health care plans, the benefit obligation is the accumulated postretirement benefit obligation. Any plan with an overfunded status is recognized as an asset, and any plan with an underfunded status is recognized as a liability. Any gains or losses and prior service costs or credits that have not been recognized as a component of net periodic benefit costs are recorded as a component of other comprehensive earnings (losses), net of deferred taxes. PMI elects to recognize actuarial gains/(losses) using the corridor approach. |
Foreign currency translation | Foreign currency translation PMI translates the results of operations of its subsidiaries and affiliates using average exchange rates during each period, whereas balance sheet accounts are translated using exchange rates at the end of each period. Currency translation adjustments are recorded as a component of stockholders’ (deficit) equity. In addition, some of PMI’s subsidiaries have assets and liabilities denominated in currencies other than their functional currencies, and to the extent those are not designated as net investment hedges, these assets and liabilities generate transaction gains and losses when translated into their respective functional currencies. |
Goodwill and non-amortizable intangible assets valuation | Goodwill and non-amortizable intangible assets valuation PMI tests goodwill and non-amortizable intangible assets for impairment annually or more frequently if events occur that would warrant such review. PMI performs its annual impairment analysis in the second quarter of each year. The impairment analysis involves comparing the fair value of each reporting unit or non-amortizable intangible asset to the carrying value. If the carrying value exceeds the fair value, goodwill or a non-amortizable intangible asset is considered impaired. |
Hedging instruments | Hedging instruments Derivative financial instruments are recorded at fair value on the consolidated balance sheets as either assets or liabilities. Changes in the fair value of derivatives are recorded each period either in accumulated other comprehensive losses on the consolidated balance sheet or in earnings, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive losses are reclassified to the consolidated statements of earnings, into the same line item as the impact of the underlying transaction, in the periods in which operating results are affected by the hedged item. Cash flows from hedging instruments are classified in the same manner as the affected hedged item in the consolidated statements of cash flows. |
Impairment of long-lived assets | Impairment of long-lived assets PMI reviews long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. PMI performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, PMI groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Impairment of investments in unconsolidated subsidiaries | Impairment of investments in unconsolidated subsidiaries Investments in unconsolidated subsidiaries are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. PMI determines whether a loss is other than temporary by considering the length of time and extent to which the fair value of the equity investment has been less than the carrying amount, the financial condition of the equity investment, and the intent to retain the investment for a period of time is sufficient to allow for any anticipated recovery in market value. |
Income taxes | Income taxes Income taxes are provided on all earnings for jurisdictions outside the United States. These provisions, as well as state and local income tax provisions, are determined on a separate company basis, and the related assets and liabilities are recorded in PMI’s consolidated balance sheets. Significant judgment is required in determining income tax provisions and in evaluating tax positions. PMI recognizes accrued interest and penalties associated with uncertain tax positions as part of the provision for income taxes on the consolidated statements of earnings. |
Inventories | Inventories Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset, although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year. |
Marketing costs | Marketing costs PMI supports its products with advertising, adult consumer engagement and trade promotions. Such programs include, but are not limited to, discounts, rebates, in-store display incentives, e-commerce, mobile and other digital platforms, adult consumer activation and promotion activities, as well as costs associated with adult consumer experience outlets and other adult consumer touchpoints and volume-based incentives. Advertising, as well as certain consumer engagement and trade activities costs, are expensed as incurred. Trade promotions are recorded as a reduction of revenues based on amounts estimated as being due to customers at the end of a period, based principally on historical utilization. For interim reporting purposes, advertising and certain consumer engagement expenses are charged to earnings based on estimated sales and related expenses for the full year. |
Revenue recognition | Revenue recognition PMI recognizes revenue primarily through the manufacture and sale of cigarettes and other nicotine-containing products, including reduced-risk products. The majority of PMI revenues are generated by sales through direct and indirect distribution networks with short-term payment conditions and where control is typically transferred to the customer either upon shipment or delivery of goods. PMI evaluates the transfer of control through evidence of the customer’s receipt and acceptance, transfer of title, PMI’s right to payment for those products and the customer’s ability to direct the use of those products upon receipt. Typically, PMI’s performance obligations are satisfied and revenue is recognized either upon shipment or delivery of goods. In certain instances, PMI facilitates shipping and handling activities after control has transferred to the customer. PMI has elected to record all shipping and handling activities as costs to fulfill a contract. The shipping and handling costs that have not been incurred at the time revenue is recognized are accrued. The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration, where applicable. Such variable consideration is typically not constrained and is estimated based on the most likely amount that PMI expects to be entitled to under the terms of the contracts with customers, historical experience of discount or rebate redemption, where relevant, and the terms of any underlying discount or rebate programs, which may change from time to time as the business and product categories evolve. PMI has elected to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Estimated costs associated with warranty programs are generally provided for in cost of sales in the period the related revenues are recognized. On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update ASU 2014-09, "Revenue from Contracts with Customers." For further details, see Note 21. New Accounting Standards . |
Stock-based compensation | Stock-based compensation PMI measures compensation cost for all stock-based awards at fair value on date of grant and recognizes the compensation costs over the service periods for awards expected to vest. PMI’s accounting policy is to estimate the number of awards expected to be forfeited and adjust the expense when it is no longer probable that the employee will fulfill the service condition. For further details, see Note 9. Stock Plans . |
New Accounting Standards | New Accounting Standards: Recently adopted On January 1, 2018, PMI adopted Financial 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 these goods or services. PMI adopted ASU 2014-09 retrospectively to each prior period presented. PMI elected this transition method solely to reflect the change in excise tax presentation in all prior periods presented resulting from PMI’s accounting policy election to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues net of excise taxes. Based on PMI’s assessment, the underlying principles of the new standard, relating to the measurement of revenue and the timing of recognition, are closely aligned with PMI’s current business model and practices. As a result, the adoption of ASU 2014-09 did not have a material impact on the consolidated financial position or results of operations. The adoption of ASU 2014-09 resulted in the following changes for net revenues to reflect the net presentation for revenues, excluding excise taxes, for the years ended December 31, 2017 and 2016 : (in millions) For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Net Revenues: As reported Retrospective Adoption As reported Retrospective Adoption Net revenues Excises taxes Net Net revenues Excises taxes Net revenues $ 78,098 $ 49,350 $ 28,748 $ 74,953 $ 48,268 $ 26,685 The change in presentation of net revenues also impacts segment disclosure requirements, primarily information for significant customers and geographic areas. While there is no change in the underlying business or customers, the amounts used to calculate what is disclosed are different following the change in presentation of revenues net of excise taxes and the associated segment revenues. Prior to this change, revenues including excise taxes were the basis for determining if sales to a customer or in a foreign country met the thresholds for disclosure. On the basis of revenues including excise taxes and due to the fact that PMI is not responsible for collecting excise taxes in certain markets, no customers met the requirements for disclosure. For the effects of the change in presentation using net revenue excluding excise taxes as the basis for determining the disclosure, see Note 12. Segment Reporting . On January 1, 2018, PMI adopted Financial Accounting Standard Update ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), on a prospective basis. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Additionally, ASU 2016-01 also changed certain disclosure requirements and other aspects of current U.S. GAAP. PMI identified certain cost investments, which are applicable to ASU 2016-01 requiring them to be measured at fair value with the changes in fair value recognized in net income. At January 1, 2018, the cumulative effect of this change resulted in an increase to investments in unconsolidated subsidiaries and equity securities, deferred income tax liability and earnings reinvested in the business of $301 million , $63 million and $238 million , respectively. Recently issued On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. PMI has identified its lease management system and has identified and evaluated the applicable leases. In addition to the guidance in ASU 2016-02, PMI has evaluated ASU 2018-11, which was issued in July 2018 and provides an optional transitional method. As a result of this evaluation, PMI elected to use the optional transition method, which allows companies to use the effective date as the date of initial application on transition and not adjust comparative period financial information or make the new required disclosures for periods prior to the effective date. Additionally, PMI elected to use the hindsight practical expedient, as well as the package of practical expedients permitted under the transition guidance within the new standard. Upon adoption, PMI recognized lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominately all of its operating leases in place at that time. At January 1, 2019, PMI's adoption of ASU 2016-02 resulted in an increase of approximately $0.7 billion on its assets and liabilities in its statement of financial position. ASU 2016-02 did not have a material impact on its results of operations or cash flows. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of movements in goodwill | The movements in goodwill were as follows: (in millions) European Union Eastern Europe Middle East & Africa South & Southeast Asia East Asia & Australia Latin America & Canada Total Balance at January 1, 2017 $ 1,238 $ 281 $ 91 $ 3,030 $ 566 $ 2,118 $ 7,324 Changes due to: Currency 181 40 11 (20 ) 1 129 342 Balances, December 31, 2017 1,419 321 102 3,010 567 2,247 7,666 Changes due to: Currency (62 ) (18 ) (15 ) (215 ) (31 ) (136 ) (477 ) Balances, December 31, 2018 $ 1,357 $ 303 $ 87 $ 2,795 $ 536 $ 2,111 $ 7,189 |
Schedule of amortizable intangible assets | Details of other intangible assets were as follows: December 31, 2018 December 31, 2017 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,269 $ 1,269 $ 1,323 $ 1,323 Amortizable intangible assets: Trademarks 19 years 1,488 $ 608 880 1,559 $ 575 984 Distribution networks 8 years 141 82 59 152 79 73 Other* 10 years 107 37 70 87 35 52 Total other intangible assets $ 3,005 $ 727 $ 2,278 $ 3,121 $ 689 $ 2,432 * Includes farmer contracts and intellectual property rights |
Schedule of non-amortizable intangible assets | Details of other intangible assets were as follows: December 31, 2018 December 31, 2017 (in millions) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Non-amortizable intangible assets $ 1,269 $ 1,269 $ 1,323 $ 1,323 Amortizable intangible assets: Trademarks 19 years 1,488 $ 608 880 1,559 $ 575 984 Distribution networks 8 years 141 82 59 152 79 73 Other* 10 years 107 37 70 87 35 52 Total other intangible assets $ 3,005 $ 727 $ 2,278 $ 3,121 $ 689 $ 2,432 * Includes farmer contracts and intellectual property rights |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries and Other Related Party (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of financial activity with unconsolidated subsidiaries and other related party | PMI’s net revenues with unconsolidated subsidiaries and the other related party were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Net revenues (a) $ 2,714 $ 2,521 $ 2,465 (a) Net revenues excludes excise taxes and VAT billed to customers. PMI’s balance sheet activity related to unconsolidated subsidiaries and the other related party was as follows: At December 31, (in millions) 2018 2017 Receivables $ 308 $ 358 |
Product Warranty (Tables)
Product Warranty (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Product Warranty | At December 31, 2018 and December 31, 2017 , these amounts were as follows: At December 31, (in millions) 2018 2017 Balance at beginning of period $ 71 $ 51 Changes due to: Warranties issued 179 168 Settlements (183 ) (148 ) Balance at end of period $ 67 $ 71 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | At December 31, 2018 and 2017 , PMI’s short-term borrowings and related average interest rates consisted of the following: December 31, 2018 December 31, 2017 (in millions) Amount Outstanding Average Year-End Rate Amount Outstanding Average Year-End Rate Commercial paper $ — — % $ — — % Bank loans 730 5.8 499 5.7 $ 730 $ 499 |
Long-Term Debt | At December 31, 2018 and 2017 , PMI’s long-term debt consisted of the following: December 31, (in millions) 2018 2017 U.S. dollar notes, 1.375% to 6.375% (average interest rate 3.328%), due through 2044 $ 20,819 $ 23,291 Foreign currency obligations: Euro notes, 0.625% to 3.125% (average interest rate 2.250%), due through 2037 8,656 8,997 Swiss franc notes, 0.750% to 2.000% (average interest rate 1.269%), due through 2024 1,374 1,376 Other (average interest rate 3.351%), due through 2024 180 176 31,029 33,840 Less current portion of long-term debt 4,054 2,506 $ 26,975 $ 31,334 |
Debt Issuances Outstanding | PMI’s debt issuances outstanding at December 31, 2018 , were as follows: (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $750 1.875% November 2013 January 2019 U.S. dollar notes $700 1.625% February 2017 February 2019 U.S. dollar notes $500 1.375% February 2016 February 2019 U.S. dollar notes $750 1.875% November 2017 November 2019 U.S. dollar notes $300 Floating February 2017 February 2020 U.S. dollar notes $1,000 2.000% February 2017 February 2020 U.S. dollar notes $1,000 4.500% March 2010 March 2020 U.S. dollar notes $750 1.875% February 2016 February 2021 U.S. dollar notes $350 4.125% May 2011 May 2021 U.S. dollar notes $750 2.900% November 2011 November 2021 U.S. dollar notes $500 2.625% February 2017 February 2022 U.S. dollar notes $750 2.375% August 2017 August 2022 U.S. dollar notes $750 2.500% August 2012 August 2022 U.S. dollar notes $750 2.500% November 2017 November 2022 U.S. dollar notes $600 2.625% March 2013 March 2023 U.S. dollar notes $500 2.125% May 2016 May 2023 U.S. dollar notes $500 3.600% November 2013 November 2023 U.S. dollar notes $750 3.250% November 2014 November 2024 U.S. dollar notes $750 3.375% August 2015 August 2025 U.S. dollar notes $750 2.750% February 2016 February 2026 U.S. dollar notes $500 3.125% August 2017 August 2027 U.S. dollar notes $500 3.125% November 2017 March 2028 (in millions) Type Face Value Interest Issuance Maturity U.S. dollar notes $1,500 6.375% May 2008 May 2038 U.S. dollar notes $750 4.375% November 2011 November 2041 U.S. dollar notes $700 4.500% March 2012 March 2042 U.S. dollar notes $750 3.875% August 2012 August 2042 U.S. dollar notes $850 4.125% March 2013 March 2043 U.S. dollar notes $750 4.875% November 2013 November 2043 U.S. dollar notes $750 4.250% November 2014 November 2044 U.S. dollar notes (a) $500 4.250% May 2016 November 2044 EURO notes (b) €750 (approximately $951) 2.125% May 2012 May 2019 EURO notes (b) €1,250 (approximately $1,621) 1.750% March 2013 March 2020 EURO notes (b) €750 (approximately $1,029) 1.875% March 2014 March 2021 EURO notes (b) €600 (approximately $761) 2.875% May 2012 May 2024 EURO notes (b) €500 (approximately $582) 0.625% November 2017 November 2024 EURO notes (b) €750 (approximately $972) 2.750% March 2013 March 2025 EURO notes (b) €1,000 (approximately $1,372) 2.875% March 2014 March 2026 EURO notes (b) €500 (approximately $697) 2.875% May 2014 May 2029 EURO notes (b) €500 (approximately $648) 3.125% June 2013 June 2033 EURO notes (b) €500 (approximately $578) 2.000% May 2016 May 2036 EURO notes (b) €500 (approximately $582) 1.875% November 2017 November 2037 Swiss franc notes (b) CHF200 (approximately $217) 0.875% March 2013 March 2019 Swiss franc notes (b) CHF275 (approximately $311) 0.750% May 2014 December 2019 Swiss franc notes (b) CHF325 (approximately $334) 1.000% September 2012 September 2020 Swiss franc notes (b) CHF300 (approximately $335) 2.000% December 2011 December 2021 Swiss franc notes (b) CHF250 (approximately $283) 1.625% May 2014 May 2024 (a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014. (b) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance. |
Schedule of Maturities of Long-term Debt | Aggregate maturities of long-term debt are as follows: (in millions) 2019 $ 4,054 2020 4,074 2021 3,024 2022 2,756 2023 1,602 2024-2028 6,913 2029-2033 1,147 Thereafter 7,698 31,268 Debt discounts (239 ) Total long-term debt $ 31,029 |
Schedule of Committed Credit Facilities and Commercial Paper Outstanding | At December 31, 2018 , PMI’s total committed credit facilities and commercial paper outstanding were as follows: Type (in billions of dollars) Committed Commercial 364-day revolving credit, expiring February 5, 2019 $ 2.0 Multi-year revolving credit, expiring February 28, 2021 2.5 Multi-year revolving credit, expiring October 1, 2022 3.5 Total facilities $ 8.0 Commercial paper outstanding $ — |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Common Stock | Shares of authorized common stock are 6.0 billion ; issued, repurchased and outstanding shares were as follows: Shares Issued Shares Shares Balances, January 1, 2016 2,109,316,331 (559,972,262 ) 1,549,344,069 Issuance of stock awards 2,041,478 2,041,478 Balances, December 31, 2016 2,109,316,331 (557,930,784 ) 1,551,385,547 Issuance of stock awards 1,832,215 1,832,215 Balances, December 31, 2017 2,109,316,331 (556,098,569 ) 1,553,217,762 Issuance of stock awards 1,361,959 1,361,959 Balances, December 31, 2018 2,109,316,331 (554,736,610 ) 1,554,579,721 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Activity for Restricted Stock | During 2018 , the activity for RSU awards was as follows: Number of Weighted- Balance at January 1, 2018 3,612,400 $ 89.65 Granted 1,288,700 100.19 Vested (1,451,876 ) 83.29 Forfeited (130,429 ) 96.24 Balance at December 31, 2018 3,318,795 $ 96.26 |
Schedule of weighted average grant date fair value and compensation expense related to share-based awards | During the years ended December 31, 2018 , 2017 and 2016 , the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows: (in millions, except per PSU award granted) PSU Grant Date Fair Value Subject to Other Performance Factors PSU Grant Date Fair Value Subject to TSR Performance Factor Compensation Expense related to PSU Awards Total Per PSU Award Total Per PSU Award Total 2018 $ 20 $ 100.69 $ 24 $ 118.98 $ 24 2017 $ 19 $ 98.29 $ 25 $ 128.72 $ 37 2016 $ 19 $ 89.02 $ 22 $ 104.60 $ 27 During the years ended December 31, 2018 , 2017 and 2016 , the weighted-average grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows: (in millions, except per RSU award granted) Total Weighted-Average Grant Date Fair Value of RSU Awards Granted Weighted-Average Grant Date Fair Value Per RSU Award Granted Compensation Expense related to RSU Awards 2018 $ 129 $ 100.19 $ 114 2017 $ 119 $ 98.59 $ 111 2016 $ 108 $ 89.03 $ 126 |
Schedule of share and fair value information for RSU awards that vested | During the years ended December 31, 2018 , 2017 and 2016 , share and fair value information for PMI RSU awards that vested were as follows: (dollars in millions) Shares of RSU Awards that Vested Grant Date Fair Value of Vested Shares of RSU Awards Total Fair Value of RSU Awards that Vested 2018 1,451,876 $ 121 $ 149 2017 2,022,856 $ 158 $ 208 2016 2,302,525 $ 202 $ 210 |
Activity for Performance Share Unit Awards | During 2018 , the activity for PSU awards was as follows: Number of Grant Date Grant Date Balance at January 1, 2018 821,030 $ 93.46 $ 116.16 Granted 401,500 100.69 118.98 Vested — — — Forfeited (27,560 ) 94.98 116.71 Balance at December 31, 2018 1,194,970 $ 95.85 $ 117.09 |
Schedule of assumptions used for PSU | The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2018 , 2017 and 2016 : For the Years Ended December 31, 2018 2017 2016 Risk-free interest rate (a) 2.3 % 1.5 % 1.0 % Expected volatility (b) 19.6 % 15.8 % 17.5 % (a) Based on the U.S. Treasury yield curve. (b) Determined using a weighted-average of historical and implied volatility. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Years Ended December 31, (in millions) 2018 2017 2016 Net earnings attributable to PMI $ 7,911 $ 6,035 $ 6,967 Less distributed and undistributed earnings attributable to share-based payment awards 16 14 19 Net earnings for basic and diluted EPS $ 7,895 $ 6,021 $ 6,948 Weighted-average shares for basic EPS 1,555 1,552 1,551 Plus contingently issuable performance stock units (PSUs) — 1 — Weighted-average shares for diluted EPS 1,555 1,553 1,551 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings Before Income Taxes and Provision For Income Taxes | Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Earnings before income taxes $ 10,671 $ 10,589 $ 9,924 Provision for income taxes: United States federal and state: Current $ 120 $ 1,662 $ (39 ) Deferred (113 ) (384 ) 293 Total United States 7 1,278 254 Outside United States: Current 2,425 3,146 2,625 Deferred 13 (117 ) (111 ) Total outside United States 2,438 3,029 2,514 Total provision for income taxes $ 2,445 $ 4,307 $ 2,768 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (in millions) 2018 2017 2016 Balance at January 1, $ 145 $ 79 $ 88 Additions based on tax positions related to the current year 10 71 13 Additions for tax positions of previous years 15 5 1 Reductions for tax positions of prior years (94 ) — (7 ) Reductions due to lapse of statute of limitations (3 ) (7 ) (14 ) Settlements (19 ) (4 ) (2 ) Other 2 1 — Balance at December 31, $ 56 $ 145 $ 79 |
Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties | Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows: (in millions) December 31, 2018 December 31, 2017 December 31, 2016 Unrecognized tax benefits $ 56 $ 145 $ 79 Accrued interest and penalties 12 23 15 Tax credits and other indirect benefits (14 ) (35 ) (31 ) Liability for tax contingencies $ 54 $ 133 $ 63 |
Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Increase (decrease) resulting from: Foreign rate differences 1.3 (12.2 ) (12.6 ) Dividend repatriation cost 2.5 16.4 5.8 Global intangible low-taxed income 1.2 Net operating losses (1.1 ) Foreign derived intangible income (1.1 ) Other (0.9 ) 1.5 (0.3 ) Effective tax rate 22.9 % 40.7 % 27.9 % |
Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: At December 31, (in millions) 2018 2017 Deferred income tax assets: Accrued postretirement and postemployment benefits $ 193 $ 239 Accrued pension costs 390 334 Inventory 136 131 Accrued liabilities 138 117 Net operating losses 452 213 Foreign exchange — 91 Other 37 57 Total deferred income tax assets 1,346 1,182 Less: valuation allowance (257 ) (156 ) Deferred income tax assets, net of valuation allowance 1,089 1,026 Deferred income tax liabilities: Trade names (508 ) (546 ) Property, plant and equipment (222 ) (223 ) Unremitted earnings (123 ) (49 ) Foreign exchange (157 ) — Total deferred income tax liabilities (1,010 ) (818 ) Net deferred income tax assets $ 79 $ 208 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Data | PMI's net revenues by product category were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Combustible products: European Union $ 8,433 $ 8,048 $ 8,105 Eastern Europe 2,597 2,657 2,478 Middle East & Africa 3,732 3,893 4,513 South & Southeast Asia 4,656 4,417 4,396 East Asia & Australia 3,074 3,156 3,619 Latin America & Canada 3,037 2,937 2,841 Total combustible products $ 25,529 $ 25,107 $ 25,952 Reduced-risk products: European Union $ 865 $ 269 57 Eastern Europe 324 55 6 Middle East & Africa 382 94 4 South & Southeast Asia — — — East Asia & Australia 2,506 3,218 666 Latin America & Canada 19 4 1 Total reduced-risk products $ 4,096 $ 3,640 $ 733 Total PMI net revenues $ 29,625 $ 28,748 $ 26,685 Other segment data were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Operating income: European Union $ 4,105 $ 3,691 $ 3,920 Eastern Europe 902 887 890 Middle East & Africa 1,627 1,884 1,990 South & Southeast Asia 1,747 1,514 1,474 East Asia & Australia 1,851 2,608 1,691 Latin America & Canada 1,145 997 938 Operating income $ 11,377 $ 11,581 $ 10,903 Net revenues by segment were as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Net revenues: European Union $ 9,298 $ 8,318 $ 8,162 Eastern Europe 2,921 2,711 2,484 Middle East & Africa 4,114 3,988 4,516 South & Southeast Asia 4,656 4,417 4,396 East Asia & Australia 5,580 6,373 4,285 Latin America & Canada 3,056 2,941 2,842 Net revenues $ 29,625 $ 28,748 $ 26,685 |
Depreciation Expense, Capital Expenditures, and Long-Lived Assets by Segment | For the Years Ended December 31, (in millions) 2018 2017 2016 Depreciation expense: European Union $ 269 $ 213 $ 184 Eastern Europe 101 76 62 Middle East & Africa 105 88 88 South & Southeast Asia 154 153 147 East Asia & Australia 173 160 100 Latin America & Canada 94 85 79 896 775 660 Other 11 12 9 Total depreciation expense $ 907 $ 787 $ 669 For the Years Ended December 31, (in millions) 2018 2017 2016 Capital expenditures: European Union $ 813 $ 956 $ 665 Eastern Europe 136 97 69 Middle East & Africa 65 85 154 South & Southeast Asia 129 140 156 East Asia & Australia 215 87 24 Latin America & Canada 74 175 103 1,432 1,540 1,171 Other 4 8 1 Total capital expenditures $ 1,436 $ 1,548 $ 1,172 At December 31, (in millions) 2018 2017 2016 Long-lived assets: European Union $ 4,216 $ 4,130 $ 3,282 Eastern Europe 547 546 466 Middle East & Africa 362 430 400 South & Southeast Asia 1,297 1,419 1,413 East Asia & Australia 781 659 503 Latin America & Canada 779 885 765 Total long-lived assets 7,982 8,069 6,829 Other 664 1,126 750 Total property, plant and equipment, net and Other assets $ 8,646 $ 9,195 $ 7,579 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Other Employee Benefit Costs | Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Net pension costs (income) $ (51 ) $ (20 ) $ (6 ) Net postemployment costs 80 85 83 Net postretirement costs 12 13 11 Total pension and other employee benefit costs $ 41 $ 78 $ 88 |
Change in Benefit Obligations | The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation and net amount accrued for PMI's postretirement health care plans, at December 31, 2018 and 2017 , were as follows: Pension (1) Postretirement (in millions) 2018 2017 2018 2017 Benefit obligation at January 1, $ 9,028 $ 8,387 $ 248 $ 227 Service cost 210 208 4 4 Interest cost 109 108 9 8 Benefits paid (218 ) (226 ) (8 ) (10 ) Settlement and curtailment 1 — — — Actuarial losses (gains) 210 (93 ) (34 ) 12 Currency (196 ) 621 (9 ) 7 Other 8 23 (1 ) — Benefit obligation at December 31, 9,152 9,028 209 248 Fair value of plan assets at January 1, 7,598 6,457 Actual return on plan assets (447 ) 742 Employer contributions 110 66 Employee contributions 24 40 Benefits paid (218 ) (226 ) Settlement and curtailment — — Currency (179 ) 519 Fair value of plan assets at December 31, 6,888 7,598 Net pension and postretirement liability recognized at December 31, $ (2,264 ) $ (1,430 ) $ (209 ) $ (248 ) (1) Primarily non-U.S. based defined benefit retirement plans. |
Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheets | At December 31, 2018 and 2017 , the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows: Pension Postretirement (in millions) 2018 2017 2018 2017 Other assets $ 37 $ 47 Accrued liabilities — employment costs (20 ) (26 ) $ (10 ) $ (10 ) Long-term employment costs (2,281 ) (1,451 ) (199 ) (238 ) $ (2,264 ) $ (1,430 ) $ (209 ) $ (248 ) |
Schedule of Assumptions Used | The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31: Pension Postretirement 2018 2017 2018 2017 Discount rate 1.61 % 1.51 % 3.97 % 3.79 % Rate of compensation increase 1.86 1.65 Interest crediting rate 3.40 3.40 Health care cost trend rate assumed for next year 6.17 6.17 Ultimate trend rate 4.59 4.62 Year that rate reaches the ultimate trend rate 2040 2029 The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs: Pension Postretirement 2018 2017 2016 2018 2017 2016 Discount rate - service cost 1.92 % 1.68 % 1.81 % 3.79 % 3.68 % 4.45 % Discount rate - interest cost 1.25 1.27 1.81 3.79 3.68 4.45 Expected rate of return on plan assets 4.76 4.80 5.36 Rate of compensation increase 1.65 1.68 2.03 Interest crediting rate 3.40 3.40 3.00 Health care cost trend rate 6.17 7.15 6.23 |
Components of Net Periodic Benefit Cost | Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2018 , 2017 and 2016 : Pension Postretirement (in millions) 2018 2017 2016 2018 2017 2016 Service cost $ 210 $ 208 $ 207 $ 4 $ 4 $ 3 Interest cost 109 108 146 9 8 9 Expected return on plan assets (349 ) (326 ) (346 ) — — — Amortization: Net losses 172 186 186 4 5 2 Prior service cost 2 6 4 (1 ) — — Settlement and curtailment 15 6 4 — — — Net periodic pension and postretirement costs $ 159 $ 188 $ 201 $ 16 $ 17 $ 14 |
Fair Value of Pension Plan Assets | The fair value of PMI’s pension plan assets at December 31, 2018 and 2017 , by asset category was as follows: Asset Category (in millions) At December 31, 2018 Quoted Prices In Active Markets for Identical Significant Significant (Level 3) Cash and cash equivalents $ 84 $ 84 Equity securities: U.S. securities 139 139 International securities 442 442 Investment funds (a) 5,508 3,595 $ 1,913 International government bonds 176 120 56 Corporate bonds 232 232 Other 19 19 Total assets in the fair value hierarchy $ 6,600 $ 4,631 $ 1,969 $ — Investment funds measured at net asset value (b) 288 Total assets $ 6,888 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% are invested in U.S. and international equities; 20% are invested in U.S. and international government bonds; 12% are invested in real estate and other money markets, and 11% are invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. Asset Category (in millions) At December 31, 2017 Quoted Prices In Active Markets for Identical Significant Significant Cash and cash equivalents $ 17 $ 17 Equity securities: U.S. securities 146 146 International securities 518 518 Investment funds (a) 6,219 4,191 $ 2,028 International government bonds 119 119 Corporate bonds 247 247 Other 22 22 Total assets in the fair value hierarchy $ 7,288 $ 5,260 $ 2,028 $ — Investment funds measured at net asset value (b) 310 Total assets $ 7,598 (a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000; S&P 500 for equities, and Citigroup EMU and Barclays Capital U.S. for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 60% were invested in U.S. and international equities; 20% were invested in U.S. and international government bonds; 10% were invested in real estate and other money markets, and 10% were invested in corporate bonds. (b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Estimated Future Benefit Payments | The estimated future benefit payments from PMI pension plans at December 31, 2018 , are as follows: (in millions) 2019 $ 290 2020 315 2021 319 2022 329 2023 347 2024 - 2028 1,971 |
Amounts Recorded in Accumulated Other Comprehensive Losses | The amounts recorded in accumulated other comprehensive losses at December 31, 2018 , consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,438 ) $ (41 ) $ (702 ) $ (4,181 ) Prior service cost (27 ) 3 — (24 ) Net transition obligation (4 ) — — (4 ) Deferred income taxes 379 20 164 563 Losses to be amortized $ (3,090 ) $ (18 ) $ (538 ) $ (3,646 ) The amounts recorded in accumulated other comprehensive losses at December 31, 2017 , consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (2,624 ) $ (80 ) $ (617 ) $ (3,321 ) Prior service cost (35 ) 4 — (31 ) Net transition obligation (5 ) — — (5 ) Deferred income taxes 327 28 186 541 Losses to be amortized $ (2,337 ) $ (48 ) $ (431 ) $ (2,816 ) The amounts recorded in accumulated other comprehensive losses at December 31, 2016 , consisted of the following: (in millions) Pension Post- Post- Total Net losses $ (3,314 ) $ (73 ) $ (713 ) $ (4,100 ) Prior service cost (53 ) 4 — (49 ) Net transition obligation (5 ) — — (5 ) Deferred income taxes 350 24 215 589 Losses to be amortized $ (3,022 ) $ (45 ) $ (498 ) $ (3,565 ) |
Movements in Other Comprehensive Earnings (Losses) | The movements in other comprehensive earnings (losses) during the year ended December 31, 2018 , were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings as components of net periodic benefit cost: Amortization: Net losses $ 180 $ 5 $ 62 $ 247 Prior service cost — (1 ) — (1 ) Net transition obligation 1 — — 1 Other income/expense: Net losses 14 — — 14 Prior service cost — — — — Deferred income taxes (28 ) (1 ) (14 ) (43 ) 167 3 48 218 Other movements during the year: Net losses (1,008 ) 34 (147 ) (1,121 ) Prior service cost 8 — — 8 Deferred income taxes 80 (7 ) (8 ) 65 (920 ) 27 (155 ) (1,048 ) Total movements in other comprehensive earnings (losses) $ (753 ) $ 30 $ (107 ) $ (830 ) The movements in other comprehensive earnings (losses) during the year ended December 31, 2017 , were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings as components of net periodic benefit cost: Amortization: Net losses $ 175 $ 5 $ 68 $ 248 Prior service cost 5 — — 5 Other income/expense: Net losses 6 — — 6 Prior service cost — — — — Deferred income taxes (10 ) (1 ) (20 ) (31 ) 176 4 48 228 Other movements during the year: Net losses 509 (12 ) 28 525 Prior service cost 13 — — 13 Deferred income taxes (13 ) 5 (9 ) (17 ) 509 (7 ) 19 521 Total movements in other comprehensive earnings (losses) $ 685 $ (3 ) $ 67 $ 749 The movements in other comprehensive earnings (losses) during the year ended December 31, 2016 , were as follows: (in millions) Pension Post- Post- Total Amounts transferred to earnings as components of net periodic benefit cost: Amortization: Net losses $ 193 $ 2 $ 62 $ 257 Prior service cost 6 — — 6 Other income/expense: Net losses 4 — — 4 Prior service cost — — — — Deferred income taxes (26 ) — (17 ) (43 ) 177 2 45 224 Other movements during the year: Net losses (437 ) (15 ) (65 ) (517 ) Prior service cost (18 ) — — (18 ) Deferred income taxes 55 4 19 78 (400 ) (11 ) (46 ) (457 ) Total movements in other comprehensive earnings (losses) $ (223 ) $ (9 ) $ (1 ) $ (233 ) |
Additional Information (Tables)
Additional Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Additional Information [Abstract] | |
Schedule of Additional Information | For the Years Ended December 31, (in millions) 2018 2017 2016 Research and development expense $ 383 $ 453 $ 429 Advertising expense $ 896 $ 830 $ 405 Foreign currency net transaction losses $ 21 $ 49 $ 272 Interest expense $ 855 $ 1,096 $ 1,069 Interest income (190 ) (182 ) (178 ) Interest expense, net $ 665 $ 914 $ 891 Rent expense $ 312 $ 313 $ 284 |
Minimum Rental Commitments under Non-Cancelable Operating Leases | Minimum rental commitments under non-cancelable operating leases in effect at December 31, 2018 , were as follows: (in millions) 2019 $ 147 2020 103 2021 73 2022 52 2023 43 Thereafter 354 $ 772 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Foreign Exchange Contracts | The fair value of PMI’s foreign exchange contracts included in the consolidated balance sheet as of December 31, 2018 and 2017 , were as follows: Derivative Assets Derivative Liabilities Fair Value Fair Value (in millions) Balance Sheet Classification 2018 2017 Balance Sheet Classification 2018 2017 Foreign exchange contracts designated as hedging instruments Other current assets $ 54 $ 84 Other accrued liabilities $ 47 $ 197 Other assets 99 34 Other liabilities 525 880 Foreign exchange contracts not designated as hedging instruments Other current assets 67 22 Other accrued liabilities 46 37 Other assets — — Other liabilities 13 14 Total derivatives $ 220 $ 140 $ 631 $ 1,128 |
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings | For the years ended December 31, 2018 , 2017 and 2016 , PMI's cash flow and net investment hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows: (pre-tax, millions) For the Year Ended December 31, Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives Statement of Earnings Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings 2018 2017 2016 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship Foreign exchange contracts $ 28 $ (52 ) $ 12 Net revenues $ 18 $ 60 $ (38 ) Cost of sales — 1 46 Marketing, administration and research costs 6 (7 ) (11 ) Interest expense, net (1 ) (41 ) (30 ) Derivatives in Net Investment Hedging Relationship Foreign exchange contracts 324 (1,644 ) 296 Total $ 352 $ (1,696 ) $ 308 $ 23 $ 13 $ (33 ) |
Pre-Tax Effect of Foreign Exchange Contracts Not Designated as Hedging Instruments | As a result, for the years ended December 31, 2018 , 2017 and 2016 , these items impacted the consolidated statement of earnings as follows: (pre-tax, in millions) Derivatives not Designated as Hedging Instruments Statement of Earnings Classification of Gain/(Loss) Amount of Gain/(Loss) 2018 2017 2016 Foreign exchange contracts Interest expense, net $ 62 $ (60 ) $ (24 ) Total $ 62 $ (60 ) $ (24 ) |
Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes | Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows: For the Years Ended December 31, (in millions) 2018 2017 2016 Gain as of January 1, $ 42 $ 97 $ 59 Derivative (gains)/losses transferred to earnings (31 ) (11 ) 30 Change in fair value 24 (44 ) 8 Gain as of December 31, $ 35 $ 42 $ 97 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Schedule of Equity Securities, Derivative Financial Instruments, Pension Plan Assets and Debt | The aggregate fair values of PMI’s equity securities, derivative financial instruments, pension plan assets and debt as of December 31, 2018 , were as follows: (in millions) Fair Value At December 31, 2018 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Equity securities $ 288 $ 288 $ — $ — Foreign exchange contracts 220 $ — 220 — Pension plan assets 6,600 4,631 1,969 — Total assets in fair value hierarchy $ 7,108 $ 4,919 $ 2,189 $ — Pension plan assets measured at net asset value (a) 288 Total assets $ 7,396 Liabilities: Debt $ 31,162 $ 30,997 $ 165 $ — Foreign exchange contracts 631 — 631 — Total liabilities $ 31,793 $ 30,997 $ 796 $ — (a) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The aggregate fair values of PMI’s derivative financial instruments, pension plan assets and debt as of December 31, 2017 , were as follows: (in millions) Fair Value At December 31, 2017 Quoted Prices in Active Markets for Significant Other Significant Unobservable Inputs (Level 3) Assets: Foreign exchange contracts $ 140 $ — $ 140 $ — Pension plan assets 7,288 5,260 2,028 — Total assets in fair value hierarchy $ 7,428 $ 5,260 $ 2,168 $ — Pension plan assets measured at net asset value (a) 310 Total assets $ 7,738 Liabilities: Debt $ 35,856 $ 35,685 $ 171 $ — Foreign exchange contracts 1,128 — 1,128 — Total liabilities $ 36,984 $ 35,685 $ 1,299 $ — (a) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Losses, Net of Taxes | PMI's accumulated other comprehensive losses, net of taxes, consisted of the following: (Losses) Earnings At December 31, (in millions) 2018 2017 2016 Currency translation adjustments $ (6,500 ) $ (5,761 ) $ (6,091 ) Pension and other benefits (3,646 ) (2,816 ) (3,565 ) Derivatives accounted for as hedges 35 42 97 Total accumulated other comprehensive losses $ (10,111 ) $ (8,535 ) $ (9,559 ) |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Tobacco Related Cases Pending Against Company | The table below lists the number of tobacco-related cases pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of February 4, 2019 , February 9, 2018 and December 31, 2016 : Type of Case Number of Cases Pending as of February 4, 2019 Number of Cases Pending as of February 9, 2018 Number of Cases Pending as of December 31, 2016 Individual Smoking and Health Cases 55 57 64 Smoking and Health Class Actions 10 11 11 Health Care Cost Recovery Actions 16 16 16 Label-Related Class Actions 1 1 — Individual Label-Related Cases 7 1 3 Public Civil Actions 2 2 2 |
Schedule of Verdicts and Post Trial Developments | The table below lists the verdict and significant post-trial developments in the four 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 $273) 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. In March 2017, plaintiff filed an en banc appeal 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. Both appeals are still pending. Date Location of Type of Verdict Post-Trial May 27, 2015 Canada/Cecilia Létourneau Class Action On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Létourneau class on liability and awarded a total of CAD 131 million (approximately $100 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 Létourneau 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 $172.5 million) to cover both the Létourneau and Blais cases. The hearing for the merits appeal took place 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 $2.37 billion)). The trial court awarded CAD 90,000 (approximately $69,000) in punitive damages, allocating CAD 30,000 (approximately $23,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $763 million) of the compensatory damage award, CAD 200 million (approximately $153 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 Létourneau case, CAD 226 million (approximately $172.5 million). The hearing for the merits appeal took place in November 2016. (See below for further detail.) Date Location of Type of Verdict Post-Trial August 5, 2016 Argentina/Hugo Lespada Individual Action On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $2,960), plus interest, in compensatory and moral damages. On August 23, 2016, our subsidiary filed its notice of appeal. On October 31, 2017, the Civil and Commercial Court of Appeals of Mar del Plata ruled that plaintiff's claim was barred by the statute of limitations and it reversed the trial court's decision. On November 28, 2017, plaintiff filed an extraordinary appeal of the reversal of the trial court's decision to the Supreme Court of the Province of Buenos Aires. |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Offsetting [Abstract] | |
Offsetting Assets | The effects of these derivative financial instrument assets and liabilities on PMI's consolidated balance sheets were as follows: (in millions) Gross Amounts Recognized Gross Amount Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received/Pledged At December 31, 2018 Assets Foreign exchange contracts $ 220 $ — $ 220 $ (124 ) $ (80 ) $ 16 Liabilities Foreign exchange contracts $ 631 $ — $ 631 $ (124 ) $ (427 ) $ 80 At December 31, 2017 Assets Foreign exchange contracts $ 140 $ — $ 140 $ (50 ) $ (78 ) $ 12 Liabilities Foreign exchange contracts $ 1,128 $ — $ 1,128 $ (50 ) $ (1,004 ) $ 74 |
Offsetting Liabilities | The effects of these derivative financial instrument assets and liabilities on PMI's consolidated balance sheets were as follows: (in millions) Gross Amounts Recognized Gross Amount Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received/Pledged At December 31, 2018 Assets Foreign exchange contracts $ 220 $ — $ 220 $ (124 ) $ (80 ) $ 16 Liabilities Foreign exchange contracts $ 631 $ — $ 631 $ (124 ) $ (427 ) $ 80 At December 31, 2017 Assets Foreign exchange contracts $ 140 $ — $ 140 $ (50 ) $ (78 ) $ 12 Liabilities Foreign exchange contracts $ 1,128 $ — $ 1,128 $ (50 ) $ (1,004 ) $ 74 |
New Accounting Standards (Table
New Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The adoption of ASU 2014-09 resulted in the following changes for net revenues to reflect the net presentation for revenues, excluding excise taxes, for the years ended December 31, 2017 and 2016 : (in millions) For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Net Revenues: As reported Retrospective Adoption As reported Retrospective Adoption Net revenues Excises taxes Net Net revenues Excises taxes Net revenues $ 78,098 $ 49,350 $ 28,748 $ 74,953 $ 48,268 $ 26,685 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,896 $ 7,726 $ 7,504 $ 7,499 Gross profit $ 4,281 $ 4,982 $ 4,886 $ 4,718 Net earnings attributable to PMI $ 1,556 $ 2,198 $ 2,247 $ 1,910 Per share data: Basic EPS $ 1.00 $ 1.41 $ 1.44 $ 1.23 Diluted EPS $ 1.00 $ 1.41 $ 1.44 $ 1.23 Dividends declared $ 1.07 $ 1.14 $ 1.14 $ 1.14 2017 Quarters (in millions, except per share data) 1st 2nd 3rd 4th Net revenues $ 6,064 $ 6,917 $ 7,473 $ 8,294 Gross profit $ 3,887 $ 4,398 $ 4,738 $ 5,293 Net earnings attributable to PMI $ 1,590 $ 1,781 $ 1,970 $ 694 Per share data: Basic EPS $ 1.02 $ 1.14 $ 1.27 $ 0.44 Diluted EPS $ 1.02 $ 1.14 $ 1.27 $ 0.44 Dividends declared $ 1.04 $ 1.04 $ 1.07 $ 1.07 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Machinery and Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 15 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of assets (years) | 40 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net (Movement in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 7,666 | $ 7,324 |
Changes due to: | ||
Currency | (477) | 342 |
Ending Balance | 7,189 | 7,666 |
European Union [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,419 | 1,238 |
Changes due to: | ||
Currency | (62) | 181 |
Ending Balance | 1,357 | 1,419 |
Eastern Europe [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 321 | 281 |
Changes due to: | ||
Currency | (18) | 40 |
Ending Balance | 303 | 321 |
Middle East And Africa [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 102 | 91 |
Changes due to: | ||
Currency | (15) | 11 |
Ending Balance | 87 | 102 |
South And Southeast Asia [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3,010 | 3,030 |
Changes due to: | ||
Currency | (215) | (20) |
Ending Balance | 2,795 | 3,010 |
East Asia And Australia [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 567 | 566 |
Changes due to: | ||
Currency | (31) | 1 |
Ending Balance | 536 | 567 |
Latin America & Canada [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,247 | 2,118 |
Changes due to: | ||
Currency | (136) | 129 |
Ending Balance | $ 2,111 | $ 2,247 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 1,269 | $ 1,323 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Accumulated Amortization | 727 | 689 |
Total other intangible assets, gross | 3,005 | 3,121 |
Total other intangible assets, net | 2,278 | 2,432 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | 1,488 | 1,559 |
Amortizable intangible assets, Accumulated Amortization | 608 | 575 |
Amortizable intangible assets, Net | $ 880 | 984 |
Weighted-Average Remaining Useful Life | 19 years | |
Distribution Networks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | $ 141 | 152 |
Amortizable intangible assets, Accumulated Amortization | 82 | 79 |
Amortizable intangible assets, Net | $ 59 | 73 |
Weighted-Average Remaining Useful Life | 8 years | |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross Carrying Amount | $ 107 | 87 |
Amortizable intangible assets, Accumulated Amortization | 37 | 35 |
Amortizable intangible assets, Net | $ 70 | $ 52 |
Weighted-Average Remaining Useful Life | 10 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net (Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated amortization expense, year one, assuming no additional transactions occur that require the amortization of intangible assets | $ 82 |
Estimated amortization expense, year two, assuming no additional transactions occur that require the amortization of intangible assets | 82 |
Estimated amortization expense, year three, assuming no additional transactions occur that require the amortization of intangible assets | 82 |
Estimated amortization expense, year four, assuming no additional transactions occur that require the amortization of intangible assets | 82 |
Estimated amortization expense, year five, assuming no additional transactions occur that require the amortization of intangible assets | $ 82 |
Investments in Unconsolidated_3
Investments in Unconsolidated Subsidiaries and Other Related Party (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 981 | $ 1,074 |
Difference between equity method investment carrying value and book value | 835 | 927 |
Dividends from unconsolidated subsidiaries | $ 118 | 120 |
PMM [Member] | TTI [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 33.00% | |
STAEM [Member] | EITA [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 51.00% | |
STAEM [Member] | Societe Nationale Des Tabacs Et Allumettes SpA. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 49.00% | |
Minimum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Difference between equity method investment carrying value and book value, amortization period | 10 years | |
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 | $ 793 | $ 873 |
EITA [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 49.00% | |
STAEM [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 25.00% | |
Megapolis [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 23.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries and Other Related Party (Balance Sheet and Earnings Activity) (Details) - Eastern Europe, Middle East & Africa [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Net revenues (a) | $ 2,714 | $ 2,521 | $ 2,465 |
Receivables | $ 308 | $ 358 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Guarantees and Product Warranties [Abstract] | ||
Standard product warranty term | 12 months | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 71 | $ 51 |
Changes due to: | ||
Warranties issued | 179 | 168 |
Settlements | (183) | (148) |
Balance at end of period | $ 67 | $ 71 |
Acquisitions (Details)
Acquisitions (Details) - Tabacalera Costarricense, S.A. And Mendiola Y Campania, S.A. [Member] $ in Millions | Mar. 21, 2018USD ($) |
Business Acquisition [Line Items] | |
Interest acquired | 49.00% |
Net purchase price | $ 95 |
Contingent consideration | $ 2 |
Ownership percentage | 100.00% |
Decrease to additional paid-in capital | $ 86 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) | Jan. 28, 2019USD ($) | Jan. 29, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 8,000,000,000 | |||
Ratio of consolidated EBITDA to consolidated interest expense on a rolling 4 quarter basis, minimum (not less than) | 3.5 | |||
Ratio of consolidated EBITDA to consolidated interest expense on a rolling 4 quarter basis | 10.5 | |||
Amount Outstanding | $ 730,000,000 | $ 499,000,000 | ||
Bank Loans [Member] | ||||
Indebtedness [Line Items] | ||||
Amount Outstanding | 730,000,000 | 499,000,000 | ||
Subsidiaries [Member] | Bank Loans [Member] | ||||
Indebtedness [Line Items] | ||||
Amount Outstanding | 730,000,000 | 499,000,000 | ||
364-day revolving credit, expiring February 5, 2019 [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,000,000,000 | 2,000,000,000 | ||
Debt term | 364 days | |||
Short-term credit arrangement [Member] | Subsidiaries [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 3,300,000,000 | $ 2,800,000,000 | ||
364-day revolving credit, expiring February 4, 2020 [Member] | Subsequent Event [Member] | ||||
Indebtedness [Line Items] | ||||
Committed credit facilities, maximum borrowing capacity | $ 2,000,000,000 | |||
Debt term | 364 days |
Indebtedness (Short-Term Borrow
Indebtedness (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 730 | $ 499 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 0 | $ 0 |
Average Year-End Rate | 0.00% | 0.00% |
Bank Loans [Member] | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 730 | $ 499 |
Average Year-End Rate | 5.80% | 5.70% |
Indebtedness (Long-Term Debt) (
Indebtedness (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 31,029 | $ 33,840 |
Less current portion of long-term debt | 4,054 | 2,506 |
Long-term debt | 26,975 | 31,334 |
US Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 20,819 | 23,291 |
Interest rate, average | 3.328% | |
Due through (maturity year) | 2,044 | |
Foreign Currency Obligations [Member] | Euro Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 8,656 | 8,997 |
Interest rate, average | 2.25% | |
Due through (maturity year) | 2,037 | |
Foreign Currency Obligations [Member] | Swiss Franc Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,374 | 1,376 |
Interest rate, average | 1.269% | |
Due through (maturity year) | 2,024 | |
Foreign Currency Obligations [Member] | Other Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 180 | $ 176 |
Interest rate, average | 3.351% | |
Due through (maturity year) | 2,024 | |
Minimum [Member] | US Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.375% | |
Minimum [Member] | Foreign Currency Obligations [Member] | Euro Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.625% | |
Minimum [Member] | Foreign Currency Obligations [Member] | Swiss Franc Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.75% | |
Maximum [Member] | US Dollar Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.375% | |
Maximum [Member] | Foreign Currency Obligations [Member] | Euro Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.125% | |
Maximum [Member] | Foreign Currency Obligations [Member] | Swiss Franc Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.00% |
Indebtedness (Debt Issuances Ou
Indebtedness (Debt Issuances Outstanding) (Details) | 12 Months Ended | ||
Dec. 31, 2018CHF (SFr) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | |
US Dollar Notes [Member] | 1.875% US Dollar Notes Due January 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.875% | 1.875% | 1.875% |
Issuance | Nov. 1, 2013 | ||
Maturity | Jan. 31, 2019 | ||
US Dollar Notes [Member] | 1.625% US Dollar Notes Due February 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 700,000,000 | ||
Interest Rate | 1.625% | 1.625% | 1.625% |
Issuance | Feb. 1, 2017 | ||
Maturity | Feb. 28, 2019 | ||
US Dollar Notes [Member] | 1.375% US Dollar Notes Due February 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 1.375% | 1.375% | 1.375% |
Issuance | Feb. 1, 2016 | ||
Maturity | Feb. 28, 2019 | ||
US Dollar Notes [Member] | 1.875% US Dollar Notes Due November 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.875% | 1.875% | 1.875% |
Issuance | Nov. 1, 2017 | ||
Maturity | Nov. 30, 2019 | ||
US Dollar Notes [Member] | Floating Rate US Dollar Notes Due February 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 300,000,000 | ||
Issuance | Feb. 1, 2017 | ||
Maturity | Feb. 29, 2020 | ||
US Dollar Notes [Member] | 2.000% US Dollar Notes Due February 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,000,000,000 | ||
Interest Rate | 2.00% | 2.00% | 2.00% |
Issuance | Feb. 1, 2017 | ||
Maturity | Feb. 29, 2020 | ||
US Dollar Notes [Member] | 4.500% US Dollar Notes Due March 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,000,000,000 | ||
Interest Rate | 4.50% | 4.50% | 4.50% |
Issuance | Mar. 1, 2010 | ||
Maturity | Mar. 31, 2020 | ||
US Dollar Notes [Member] | 1.875% US Dollar Notes Due February 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 1.875% | 1.875% | 1.875% |
Issuance | Feb. 1, 2016 | ||
Maturity | Feb. 28, 2021 | ||
US Dollar Notes [Member] | 4.125% US Dollar Notes Due May 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 350,000,000 | ||
Interest Rate | 4.125% | 4.125% | 4.125% |
Issuance | May 1, 2011 | ||
Maturity | May 31, 2021 | ||
US Dollar Notes [Member] | 2.900% US Dollar Notes Due November 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.90% | 2.90% | 2.90% |
Issuance | Nov. 1, 2011 | ||
Maturity | Nov. 30, 2021 | ||
US Dollar Notes [Member] | 2.625% US Dollar Notes Due February 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 2.625% | 2.625% | 2.625% |
Issuance | Feb. 1, 2017 | ||
Maturity | Feb. 28, 2022 | ||
US Dollar Notes [Member] | 2.375% US Dollar Notes Due August 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.375% | 2.375% | 2.375% |
Issuance | Aug. 1, 2017 | ||
Maturity | Aug. 31, 2022 | ||
US Dollar Notes [Member] | 2.500% US Dollar Notes Due August 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.50% | 2.50% | 2.50% |
Issuance | Aug. 1, 2012 | ||
Maturity | Aug. 31, 2022 | ||
US Dollar Notes [Member] | 2.500% US Dollar Notes Due November 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.50% | 2.50% | 2.50% |
Issuance | Nov. 1, 2017 | ||
Maturity | Nov. 30, 2022 | ||
US Dollar Notes [Member] | 2.625% US Dollar Notes Due March 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 600,000,000 | ||
Interest Rate | 2.625% | 2.625% | 2.625% |
Issuance | Mar. 1, 2013 | ||
Maturity | Mar. 31, 2023 | ||
US Dollar Notes [Member] | 2.125% US Dollar Notes Due May 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 2.125% | 2.125% | 2.125% |
Issuance | May 1, 2016 | ||
Maturity | May 31, 2023 | ||
US Dollar Notes [Member] | 3.600% US Dollar Notes Due November 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.60% | 3.60% | 3.60% |
Issuance | Nov. 1, 2013 | ||
Maturity | Nov. 30, 2023 | ||
US Dollar Notes [Member] | 3.250% US Dollar Notes Due November 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.25% | 3.25% | 3.25% |
Issuance | Nov. 1, 2014 | ||
Maturity | Nov. 30, 2024 | ||
US Dollar Notes [Member] | 3.375% US Dollar Notes Due August 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.375% | 3.375% | 3.375% |
Issuance | Aug. 1, 2015 | ||
Maturity | Aug. 31, 2025 | ||
US Dollar Notes [Member] | 2.750% US Dollar Notes Due February 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 2.75% | 2.75% | 2.75% |
Issuance | Feb. 1, 2016 | ||
Maturity | Feb. 28, 2026 | ||
US Dollar Notes [Member] | 3.125% US Dollar Notes Due August 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.125% | 3.125% | 3.125% |
Issuance | Aug. 1, 2017 | ||
Maturity | Aug. 31, 2027 | ||
US Dollar Notes [Member] | 3.125% US Dollar Notes Due March 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 3.125% | 3.125% | 3.125% |
Issuance | Nov. 1, 2017 | ||
Maturity | Mar. 31, 2028 | ||
US Dollar Notes [Member] | 6.375% US Dollar Notes Due May 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 1,500,000,000 | ||
Interest Rate | 6.375% | 6.375% | 6.375% |
Issuance | May 1, 2008 | ||
Maturity | May 31, 2038 | ||
US Dollar Notes [Member] | 4.375% US Dollar Notes Due November 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.375% | 4.375% | 4.375% |
Issuance | Nov. 1, 2011 | ||
Maturity | Nov. 30, 2041 | ||
US Dollar Notes [Member] | 4.500% US Dollar Notes Due March 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 700,000,000 | ||
Interest Rate | 4.50% | 4.50% | 4.50% |
Issuance | Mar. 1, 2012 | ||
Maturity | Mar. 31, 2042 | ||
US Dollar Notes [Member] | 3.875% US Dollar Notes Due August 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 3.875% | 3.875% | 3.875% |
Issuance | Aug. 1, 2012 | ||
Maturity | Aug. 31, 2042 | ||
US Dollar Notes [Member] | 4.125% US Dollar Notes Due March 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 850,000,000 | ||
Interest Rate | 4.125% | 4.125% | 4.125% |
Issuance | Mar. 1, 2013 | ||
Maturity | Mar. 31, 2043 | ||
US Dollar Notes [Member] | 4.875% US Dollar Notes Due November 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.875% | 4.875% | 4.875% |
Issuance | Nov. 1, 2013 | ||
Maturity | Nov. 30, 2043 | ||
US Dollar Notes [Member] | 4.250% US Dollar Notes Due November 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 750,000,000 | ||
Interest Rate | 4.25% | 4.25% | 4.25% |
Issuance | Nov. 1, 2014 | ||
Maturity | Nov. 30, 2044 | ||
US Dollar Notes [Member] | 4.250% US Dollar Notes Issued May 2016 Due November 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500,000,000 | ||
Interest Rate | 4.25% | 4.25% | 4.25% |
Issuance | May 1, 2016 | ||
Maturity | Nov. 30, 2044 | ||
Foreign Currency Obligations [Member] | 2.125% Euro Notes Due May 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 750,000,000 | $ 951,000,000 | |
Interest Rate | 2.125% | 2.125% | 2.125% |
Issuance | May 1, 2012 | ||
Maturity | May 31, 2019 | ||
Foreign Currency Obligations [Member] | 1.750% Euro Notes Due March 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 1,250,000,000 | $ 1,621,000,000 | |
Interest Rate | 1.75% | 1.75% | 1.75% |
Issuance | Mar. 1, 2013 | ||
Maturity | Mar. 31, 2020 | ||
Foreign Currency Obligations [Member] | 1.875% Euro Notes Due March 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 750,000,000 | $ 1,029,000,000 | |
Interest Rate | 1.875% | 1.875% | 1.875% |
Issuance | Mar. 1, 2014 | ||
Maturity | Mar. 31, 2021 | ||
Foreign Currency Obligations [Member] | 2.875% Euro Notes Due May 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 600,000,000 | $ 761,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Issuance | May 1, 2012 | ||
Maturity | May 31, 2024 | ||
Foreign Currency Obligations [Member] | 0.625% Euro Notes Due November 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 500,000,000 | $ 582,000,000 | |
Interest Rate | 0.625% | 0.625% | 0.625% |
Issuance | Nov. 1, 2017 | ||
Maturity | Nov. 30, 2024 | ||
Foreign Currency Obligations [Member] | 2.750% Euro Notes Due March 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 750,000,000 | $ 972,000,000 | |
Interest Rate | 2.75% | 2.75% | 2.75% |
Issuance | Mar. 1, 2013 | ||
Maturity | Mar. 31, 2025 | ||
Foreign Currency Obligations [Member] | 2.875% Euro Notes Due March 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 1,000,000,000 | $ 1,372,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Issuance | Mar. 1, 2014 | ||
Maturity | Mar. 31, 2026 | ||
Foreign Currency Obligations [Member] | 2.875% Euro Notes Due May 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 500,000,000 | $ 697,000,000 | |
Interest Rate | 2.875% | 2.875% | 2.875% |
Issuance | May 1, 2014 | ||
Maturity | May 31, 2029 | ||
Foreign Currency Obligations [Member] | 3.125% Euro Notes Due June 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 500,000,000 | $ 648,000,000 | |
Interest Rate | 3.125% | 3.125% | 3.125% |
Issuance | Jun. 1, 2013 | ||
Maturity | Jun. 30, 2033 | ||
Foreign Currency Obligations [Member] | 2.000% Euro Notes Due May 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 500,000,000 | $ 578,000,000 | |
Interest Rate | 2.00% | 2.00% | 2.00% |
Issuance | May 1, 2016 | ||
Maturity | May 31, 2036 | ||
Foreign Currency Obligations [Member] | 1.875% Euro Notes Due November 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | € 500,000,000 | $ 582,000,000 | |
Interest Rate | 1.875% | 1.875% | 1.875% |
Issuance | Nov. 1, 2017 | ||
Maturity | Nov. 30, 2037 | ||
Foreign Currency Obligations [Member] | 0.875% Swiss Franc Notes Due March 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | SFr 200,000,000 | $ 217,000,000 | |
Interest Rate | 0.875% | 0.875% | 0.875% |
Issuance | Mar. 1, 2013 | ||
Maturity | Mar. 31, 2019 | ||
Foreign Currency Obligations [Member] | 0.750% Swiss Franc Notes Due December 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | SFr 275,000,000 | $ 311,000,000 | |
Interest Rate | 0.75% | 0.75% | 0.75% |
Issuance | May 1, 2014 | ||
Maturity | Dec. 31, 2019 | ||
Foreign Currency Obligations [Member] | 1.000% Swiss Franc Notes Due September 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | SFr 325,000,000 | $ 334,000,000 | |
Interest Rate | 1.00% | 1.00% | 1.00% |
Issuance | Sep. 1, 2012 | ||
Maturity | Sep. 30, 2020 | ||
Foreign Currency Obligations [Member] | 2.000% Swiss Franc Notes Due December 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | SFr 300,000,000 | $ 335,000,000 | |
Interest Rate | 2.00% | 2.00% | 2.00% |
Issuance | Dec. 1, 2011 | ||
Maturity | Dec. 31, 2021 | ||
Foreign Currency Obligations [Member] | 1.625% Swiss Franc Notes Due May 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | SFr 250,000,000 | $ 283,000,000 | |
Interest Rate | 1.625% | 1.625% | 1.625% |
Issuance | May 1, 2014 | ||
Maturity | May 31, 2024 |
Indebtedness (Aggregate Maturit
Indebtedness (Aggregate Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 4,054 | $ 2,506 |
2,020 | 4,074 | |
2,021 | 3,024 | |
2,022 | 2,756 | |
2,023 | 1,602 | |
2024-2028 | 6,913 | |
2029-2033 | 1,147 | |
Thereafter | 7,698 | |
Long-term debt, gross | 31,268 | |
Debt discounts | (239) | |
Total long-term debt | $ 31,029 | $ 33,840 |
Indebtedness (Credit Facilities
Indebtedness (Credit Facilities) (Details) - USD ($) $ in Billions | Dec. 31, 2018 | Jan. 29, 2018 |
Line of Credit Facility [Line Items] | ||
Committed Credit Facilities | $ 8 | |
Commercial Paper | 0 | |
364-day revolving credit, expiring February 5, 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed Credit Facilities | 2 | $ 2 |
Multi-year revolving credit, expiring February 28, 2021 [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed Credit Facilities | 2.5 | |
Multi-year revolving credit, expiring October 1, 2022 [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed Credit Facilities | $ 3.5 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) | Dec. 31, 2018shares |
Class of Stock Disclosures [Abstract] | |
Common Stock, shares authorized (in shares) | 6,000,000,000 |
Shares of common stock reserved (in shares) | 29,594,929 |
Preferred stock shares authorized (in shares) | 250,000,000 |
Capital Stock (Schedule of Comm
Capital Stock (Schedule of Common Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | ||
Shares repurchased, beginning of period (in shares) | (556,098,569) | ||
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | |
Shares repurchased, end of period (in shares) | (554,736,610) | (556,098,569) | |
Shares Issued [Member] | |||
Capital Stock [Roll Forward] | |||
Shares issued, beginning of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares issued, end of period (in shares) | 2,109,316,331 | 2,109,316,331 | 2,109,316,331 |
Shares Repurchased [Member] | |||
Capital Stock [Roll Forward] | |||
Shares repurchased, beginning of period (in shares) | (556,098,569) | (557,930,784) | (559,972,262) |
Issuance of stock awards and exercise of stock options (in shares) | 1,361,959 | 1,832,215 | 2,041,478 |
Shares repurchased, end of period (in shares) | (554,736,610) | (556,098,569) | (557,930,784) |
Shares Outstanding [Member] | |||
Capital Stock [Roll Forward] | |||
Shares outstanding, beginning of period (in shares) | 1,553,217,762 | 1,551,385,547 | 1,549,344,069 |
Issuance of stock awards and exercise of stock options (in shares) | 1,361,959 | 1,832,215 | 2,041,478 |
Shares outstanding, end of period (in shares) | 1,554,579,721 | 1,553,217,762 | 1,551,385,547 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)performance_metricyearshares | Dec. 31, 2017shares | Dec. 31, 2016shares | May 31, 2017shares | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.00% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 118 | |||
Weighted-average recognition period | 2 years | |||
Vested (in shares) | 1,451,876 | 2,022,856 | 2,302,525 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Minimum retirement age | year | 58 | |||
Unamortized compensation cost related to restricted stock and deferred stock awards | $ | $ 25 | |||
Weighted-average recognition period | 2 years | |||
Performance period | 3 years | |||
Total Shareholder Return (TSR) relative to a predetermined peer group | 50.00% | |||
Currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions | 30.00% | |||
Performance against specific measures of transformation | 20.00% | |||
Number of performance metrics used to determine the percentage of PSU's that will vest | performance_metric | 3 | |||
Aggregate weighted performance factor that determines if the target number of PSU's will vest | 100.00% | |||
Number of shares of common stock issued for each vested PSU | 1 | |||
Vested (in shares) | 0 | 0 | 0 | |
2017 Performance Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated common stock to be awarded under a stock benefit plan, maximum limit (in shares) | 25,000,000 | |||
Shares available for grant under the plan (in shares) | 22,911,850 | |||
2017 Non Employee Directors Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated common stock to be awarded under a stock benefit plan, maximum limit (in shares) | 1,000,000 | |||
Shares available for grant under the plan (in shares) | 974,344 | |||
Percentage of voting shares that PMI may own, used in determining non-employee director status | 50.00% |
Stock Plans (Activity for Restr
Stock Plans (Activity for Restricted Stock Awards) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares (in shares): | |||
Beginning Balance (in shares) | 3,612,400 | ||
Granted (in shares) | 1,288,700 | ||
Vested (in shares) | (1,451,876) | (2,022,856) | (2,302,525) |
Forfeited (in shares) | (130,429) | ||
Ending Balance (in shares) | 3,318,795 | 3,612,400 | |
Weighted-Average Grant Date Fair Value: | |||
Beginning Balance (in dollars per share) | $ 89.65 | ||
Granted (in dollars per share) | 100.19 | $ 98.59 | $ 89.03 |
Vested (in dollars per share) | 83.29 | ||
Forfeited (in dollars per share) | 96.24 | ||
Ending Balance (in dollars per share) | $ 96.26 | $ 89.65 | |
Total Weighted-Average Grant Date Fair Value of RSU Awards Granted | $ 129 | $ 119 | $ 108 |
Compensation Expense related to RSU Awards | 114 | 111 | 126 |
Grant Date Fair Value [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Grant Date Fair Value of RSU Awards Vested | 121 | 158 | 202 |
Fair Value [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Grant Date Fair Value of RSU Awards Vested | $ 149 | $ 208 | $ 210 |
Stock Plans (Activity for Perfo
Stock Plans (Activity for Performance Share Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Shares [Member] | |||
Number of Shares (in shares): | |||
Beginning Balance (in shares) | 821,030 | ||
Granted (in shares) | 401,500 | ||
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (27,560) | ||
Ending Balance (in shares) | 1,194,970 | 821,030 | |
Weighted-Average Grant Date Fair Value: | |||
Compensation expense for share-based awards | $ 24 | $ 37 | $ 27 |
Performance Share Units, TSR Relative To Customer Peer Group [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Beginning Balance (in dollars per share) | $ 116.16 | ||
Granted (in dollars per share) | 118.98 | $ 128.72 | $ 104.60 |
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 116.71 | ||
Ending Balance (in dollars per share) | $ 117.09 | $ 116.16 | |
Weighted-average grant date fair value | $ 24 | $ 25 | $ 22 |
Performance Share Units, Other Performance Factors [Member] | |||
Weighted-Average Grant Date Fair Value: | |||
Beginning Balance (in dollars per share) | $ 93.46 | ||
Granted (in dollars per share) | 100.69 | $ 98.29 | $ 89.02 |
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 94.98 | ||
Ending Balance (in dollars per share) | $ 95.85 | $ 93.46 | |
Weighted-average grant date fair value | $ 20 | $ 19 | $ 19 |
Stock Plans (Assumptions Used)
Stock Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.30% | 1.50% | 1.00% |
Expected volatility | 19.60% | 15.80% | 17.50% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings attributable to PMI | $ 1,910 | $ 2,247 | $ 2,198 | $ 1,556 | $ 694 | $ 1,970 | $ 1,781 | $ 1,590 | $ 7,911 | $ 6,035 | $ 6,967 |
Less distributed and undistributed earnings attributable to share-based payment awards | 16 | 14 | 19 | ||||||||
Net earnings for basic and diluted EPS | $ 7,895 | $ 6,021 | $ 6,948 | ||||||||
Weighted-average shares for basic EPS (in shares) | 1,555,000,000 | 1,552,000,000 | 1,551,000,000 | ||||||||
Plus contingently issuable performance stock units (PSUs) (in shares) | 0 | 1,000,000 | 0 | ||||||||
Weighted-average shares for diluted EPS (in shares) | 1,555,000,000 | 1,553,000,000 | 1,551,000,000 | ||||||||
Antidilutive stock options (in shares) | 0 | 0 | 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Provisional expense | $ 1,600 | |||
Accumulated foreign earning provisional tax charge | 1,400 | |||
Transition tax | $ 2,200 | |||
Reversal of previously recorded deferred tax liabilities | 700 | |||
Other items | 100 | |||
Re-measurement provisional charge | 200 | |||
Income tax provision charge | $ 31 | |||
Current income tax charge from transition tax on foreign earnings | 185 | |||
TCJA, income tax payable | 1,700 | 1,700 | ||
TCJA. income tax payable included in income taxes and other liabilities | 1,600 | 1,600 | ||
Income tax payable | 100 | |||
Income tax payable noncurrent | 1,500 | |||
Foreign tax credits related to foreign withholding taxes | 500 | |||
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 41 | |||
Income tax penalties and interest income (expense) recognized | $ 4 | $ (11) | $ 13 | |
Percentage increase (decrease) in effective income tax rate | (17.80%) | 12.80% | (0.10%) | |
Unrecognized tax benefits, settlements | $ 19 | $ 4 | $ 2 | |
Net operating loss carryforwards | 213 | 452 | 213 | |
Net operating loss carryforwards with unlimited period | 87 | |||
Valuation allowances | $ 156 | 257 | $ 156 | |
Adjustment Of 2017 Provisional Estimates [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred income tax benefit due to recognition of net operating losses in New York state | $ 154 | |||
United States [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax years | 2015 and onward | |||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Foreign and U.S. state jurisdictions have statutes of limitations | 3 years | |||
Minimum [Member] | Germany [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2,015 | |||
Minimum [Member] | Indonesia [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2,014 | |||
Minimum [Member] | Russia [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2,015 | |||
Minimum [Member] | Switzerland [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2,017 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Foreign and U.S. state jurisdictions have statutes of limitations | 5 years |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes and Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Earnings before income taxes | $ 10,671 | $ 10,589 | $ 9,924 |
United States federal and state: | |||
Current | 120 | 1,662 | (39) |
Deferred | (113) | (384) | 293 |
Total United States | 7 | 1,278 | 254 |
Outside United States: | |||
Current | 2,425 | 3,146 | 2,625 |
Deferred | 13 | (117) | (111) |
Total outside United States | 2,438 | 3,029 | 2,514 |
Total provision for income taxes | $ 2,445 | $ 4,307 | $ 2,768 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at January 1, | $ 145 | $ 79 | $ 88 |
Additions based on tax positions related to the current year | 10 | 71 | 13 |
Additions for tax positions of previous years | 15 | 5 | 1 |
Reductions for tax positions of prior years | (94) | 0 | (7) |
Reductions due to lapse of statute of limitations | (3) | (7) | (14) |
Settlements | (19) | (4) | (2) |
Other | 2 | 1 | 0 |
Balance at December 31, | $ 56 | $ 145 | $ 79 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 56 | $ 145 | $ 79 | $ 88 |
Accrued interest and penalties | 12 | 23 | 15 | |
Tax credits and other indirect benefits | (14) | (35) | (31) | |
Liability for tax contingencies | $ 54 | $ 133 | $ 63 |
Income Taxes (Schedule of Reaso
Income Taxes (Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate And Federal Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
Foreign rate differences | 1.30% | (12.20%) | (12.60%) |
Dividend repatriation cost | 2.50% | 16.40% | 5.80% |
Global intangible low-taxed income | 1.20% | ||
Net operating losses | (1.10%) | ||
Foreign derived intangible income | (1.10%) | ||
Other | (0.90%) | 1.50% | (0.30%) |
Effective tax rate | 22.90% | 40.70% | 27.90% |
Income Taxes (Schedule of Tempo
Income Taxes (Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 193 | $ 239 |
Accrued pension costs | 390 | 334 |
Inventory | 136 | 131 |
Accrued liabilities | 138 | 117 |
Net operating losses | 452 | 213 |
Foreign exchange | 0 | 91 |
Other | 37 | 57 |
Total deferred income tax assets | 1,346 | 1,182 |
Less: valuation allowance | (257) | (156) |
Total deferred income tax assets | 1,089 | 1,026 |
Deferred income tax liabilities: | ||
Trade names | (508) | (546) |
Property, plant and equipment | (222) | (223) |
Unremitted earnings | (123) | (49) |
Foreign exchange | (157) | 0 |
Total deferred income tax liabilities | (1,010) | (818) |
Net deferred income tax assets | $ 79 | $ 208 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 6 | ||||||||||
Net revenues | $ 7,499 | $ 7,504 | $ 7,726 | $ 6,896 | $ 8,294 | $ 7,473 | $ 6,917 | $ 6,064 | $ 29,625 | $ 28,748 | $ 26,685 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 29,625 | 28,748 | 26,685 | ||||||||
Long-lived assets | 7,982 | 8,069 | 7,982 | 8,069 | 6,829 | ||||||
Japan [Member] | Geographic Concentration Risk [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,800 | 4,700 | 2,800 | ||||||||
Indonesia [Member] | Geographic Concentration Risk [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,100 | 3,200 | 3,200 | ||||||||
Indonesia [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 700 | 800 | $ 700 | $ 800 | $ 800 | ||||||
East Asia And Australia [Member] | Customer Concentration Risk [Member] | Net Revenues [Member] | Customer One [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk percentage | 13.00% | 16.00% | 11.00% | ||||||||
East Asia And Australia [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 5,580 | $ 6,373 | $ 4,285 | ||||||||
Long-lived assets | 781 | 659 | $ 781 | $ 659 | $ 503 | ||||||
European Union [Member] | Customer Concentration Risk [Member] | Net Revenues [Member] | Customer One [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk percentage | 10.00% | 10.00% | 11.00% | ||||||||
European Union [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 9,298 | $ 8,318 | $ 8,162 | ||||||||
Long-lived assets | 4,216 | 4,130 | 4,216 | 4,130 | 3,282 | ||||||
Italy [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 1,100 | 1,200 | 1,100 | 1,200 | 700 | ||||||
Switzerland [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | $ 1,000 | $ 900 | $ 1,000 | $ 900 | $ 900 |
Segment Reporting (Segment Data
Segment Reporting (Segment Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 7,499 | $ 7,504 | $ 7,726 | $ 6,896 | $ 8,294 | $ 7,473 | $ 6,917 | $ 6,064 | $ 29,625 | $ 28,748 | $ 26,685 |
Operating income | 11,377 | 11,581 | 10,903 | ||||||||
Reduced-Risk Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,096 | 3,640 | 733 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 29,625 | 28,748 | 26,685 | ||||||||
Operating income | 11,377 | 11,581 | 10,903 | ||||||||
Operating Segments [Member] | European Union [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 9,298 | 8,318 | 8,162 | ||||||||
Operating income | 4,105 | 3,691 | 3,920 | ||||||||
Operating Segments [Member] | Eastern Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,921 | 2,711 | 2,484 | ||||||||
Operating income | 902 | 887 | 890 | ||||||||
Operating Segments [Member] | Middle East And Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,114 | 3,988 | 4,516 | ||||||||
Operating income | 1,627 | 1,884 | 1,990 | ||||||||
Operating Segments [Member] | South And Southeast Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,656 | 4,417 | 4,396 | ||||||||
Operating income | 1,747 | 1,514 | 1,474 | ||||||||
Operating Segments [Member] | East Asia And Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 5,580 | 6,373 | 4,285 | ||||||||
Operating income | 1,851 | 2,608 | 1,691 | ||||||||
Operating Segments [Member] | Latin America & Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,056 | 2,941 | 2,842 | ||||||||
Operating income | 1,145 | 997 | 938 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 25,529 | 25,107 | 25,952 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | European Union [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 8,433 | 8,048 | 8,105 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | Eastern Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,597 | 2,657 | 2,478 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | Middle East And Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,732 | 3,893 | 4,513 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | South And Southeast Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,656 | 4,417 | 4,396 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | East Asia And Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,074 | 3,156 | 3,619 | ||||||||
Operating Segments [Member] | Combustible Products [Member] | Latin America & Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 3,037 | 2,937 | 2,841 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | European Union [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 865 | 269 | 57 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | Eastern Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 324 | 55 | 6 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | Middle East And Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 382 | 94 | 4 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | South And Southeast Asia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 0 | 0 | 0 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | East Asia And Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 2,506 | 3,218 | 666 | ||||||||
Operating Segments [Member] | Reduced-Risk Products [Member] | Latin America & Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 19 | $ 4 | $ 1 |
Segment Reporting (Other Expens
Segment Reporting (Other Expenses By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 907 | $ 787 | $ 669 |
Capital expenditures | 1,436 | 1,548 | 1,172 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 896 | 775 | 660 |
Capital expenditures | 1,432 | 1,540 | 1,171 |
Operating Segments [Member] | European Union [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 269 | 213 | 184 |
Capital expenditures | 813 | 956 | 665 |
Operating Segments [Member] | Eastern Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 101 | 76 | 62 |
Capital expenditures | 136 | 97 | 69 |
Operating Segments [Member] | Middle East And Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 105 | 88 | 88 |
Capital expenditures | 65 | 85 | 154 |
Operating Segments [Member] | South And Southeast Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 154 | 153 | 147 |
Capital expenditures | 129 | 140 | 156 |
Operating Segments [Member] | East Asia And Australia [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 173 | 160 | 100 |
Capital expenditures | 215 | 87 | 24 |
Operating Segments [Member] | Latin America & Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 94 | 85 | 79 |
Capital expenditures | 74 | 175 | 103 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 11 | 12 | 9 |
Capital expenditures | $ 4 | $ 8 | $ 1 |
Segment Reporting (Long-Lived A
Segment Reporting (Long-Lived Assets By Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Total property, plant and equipment, net and Other assets | $ 8,646 | $ 9,195 | $ 7,579 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 7,982 | 8,069 | 6,829 |
Operating Segments [Member] | European Union [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 4,216 | 4,130 | 3,282 |
Operating Segments [Member] | Eastern Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 547 | 546 | 466 |
Operating Segments [Member] | Middle East And Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 362 | 430 | 400 |
Operating Segments [Member] | South And Southeast Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,297 | 1,419 | 1,413 |
Operating Segments [Member] | East Asia And Australia [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 781 | 659 | 503 |
Operating Segments [Member] | Latin America & Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 779 | 885 | 765 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Other | $ 664 | $ 1,126 | $ 750 |
Benefit Plans (Pension and Othe
Benefit Plans (Pension and Other Employee Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 41 | $ 78 | $ 88 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | (51) | (20) | (6) |
Postemployment Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | 80 | 85 | 83 |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension and other employee benefit costs | $ 12 | $ 13 | $ 11 |
Benefit Plans (Obligations and
Benefit Plans (Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | $ 9,028 | $ 8,387 | |
Service cost | 210 | 208 | $ 207 |
Interest cost | 109 | 108 | 146 |
Benefits paid | (218) | (226) | |
Settlement and curtailment | 1 | 0 | |
Actuarial losses (gains) | 210 | (93) | |
Currency | (196) | 621 | |
Other | 8 | 23 | |
Benefit obligation at December 31, | 9,152 | 9,028 | 8,387 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | 7,598 | 6,457 | |
Actual return on plan assets | (447) | 742 | |
Employer contributions | 110 | 66 | |
Employee contributions | 24 | 40 | |
Benefits paid | (218) | (226) | |
Settlement and curtailment | 0 | 0 | |
Currency | (179) | 519 | |
Fair value of plan assets at December 31, | 6,888 | 7,598 | 6,457 |
Net benefit liability | (2,264) | (1,430) | |
Postretirement [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | 248 | 227 | |
Service cost | 4 | 4 | 3 |
Interest cost | 9 | 8 | 9 |
Benefits paid | (8) | (10) | |
Settlement and curtailment | 0 | 0 | |
Actuarial losses (gains) | (34) | 12 | |
Currency | (9) | 7 | |
Other | (1) | 0 | |
Benefit obligation at December 31, | 209 | 248 | $ 227 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Net benefit liability | $ (209) | $ (248) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts charged to expense for defined contribution plans | $ 66 | $ 58 | $ 56 |
Estimated contribution to pension plans | 119 | ||
Net postemployment costs | $ 158 | $ 144 | 166 |
Postemployment weighted-average discount rate | 3.10% | 3.00% | |
Postemployment annual weighted-average turnover rate | 3.20% | 2.60% | |
Postemployment percentage increase in assumed compensation cost | 2.60% | 2.30% | |
Assets related to postemployment cost | $ 38 | $ 33 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 60.00% | ||
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 40.00% | ||
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 8,557 | 8,496 | |
Accumulated benefit obligations in excess of plan assets, accumulated benefit obligation | 7,641 | 6,953 | |
Accumulated benefit obligations in excess of plan assets, fair value of plan assets | 5,866 | 5,835 | |
Projected benefit obligations in excess of plan assets, project benefit obligation | 8,807 | 8,609 | |
Projected benefit obligations in excess of plan assets, fair value of plan assets | 6,504 | 7,135 | |
Accrued postemployment costs | 9,152 | 9,028 | $ 8,387 |
Actuarial losses (gains) | 210 | (93) | |
Postemployment [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued postemployment costs | 708 | $ 671 | |
Actuarial losses (gains) | $ 147 | ||
Pension Plan Portfolio [Member] | Benefit Obligation [Member] | Switzerland [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 60.00% | 57.00% | |
Pension Plan Portfolio [Member] | Benefit Obligation [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 4.00% | 5.00% | |
Pension Plan Portfolio [Member] | Fair Value Of Plan Assets [Member] | Switzerland [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 57.00% | 57.00% | |
Pension Plan Portfolio [Member] | Fair Value Of Plan Assets [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 4.00% | 4.00% |
Benefit Plans (Pension and Post
Benefit Plans (Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | $ 37 | $ 47 |
Accrued liabilities — employment costs | (20) | (26) |
Long-term employment costs | (2,281) | (1,451) |
Net benefit liability | (2,264) | (1,430) |
Postretirement [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued liabilities — employment costs | (10) | (10) |
Long-term employment costs | (199) | (238) |
Net benefit liability | $ (209) | $ (248) |
Benefit Plans (Weighted-Average
Benefit Plans (Weighted-Average Assumptions to Determine Benefit Obligations) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.61% | 1.51% |
Rate of compensation increase | 1.86% | 1.65% |
Interest crediting rate | 3.40% | 3.40% |
Postretirement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.97% | 3.79% |
Health care cost trend rate assumed for next year | 6.17% | 6.17% |
Ultimate trend rate | 4.59% | 4.62% |
Year that rate reaches the ultimate trend rate | 2,040 | 2,029 |
Benefit Plans (Components of Ne
Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 210 | $ 208 | $ 207 |
Interest cost | 109 | 108 | 146 |
Expected return on plan assets | (349) | (326) | (346) |
Amortization: | |||
Net losses | 172 | 186 | 186 |
Prior service cost | 2 | 6 | 4 |
Settlement and curtailment | 15 | 6 | 4 |
Net periodic pension cost | 159 | 188 | 201 |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 4 | 3 |
Interest cost | 9 | 8 | 9 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization: | |||
Net losses | 4 | 5 | 2 |
Prior service cost | (1) | 0 | 0 |
Settlement and curtailment | 0 | 0 | 0 |
Net periodic pension cost | $ 16 | $ 17 | $ 14 |
Benefit Plans (Net Pension and
Benefit Plans (Net Pension and Postretirement Cost Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost | 1.92% | 1.68% | 1.81% |
Discount rate - interest cost | 1.25% | 1.27% | 1.81% |
Expected rate of return on plan assets | 4.76% | 4.80% | 5.36% |
Rate of compensation increase | 1.65% | 1.68% | 2.03% |
Interest crediting rate | 3.40% | 3.40% | 3.00% |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - service cost | 3.79% | 3.68% | 4.45% |
Discount rate - interest cost | 3.79% | 3.68% | 4.45% |
Health care cost trend rate | 6.17% | 7.15% | 6.23% |
Benefit Plans (Fair Value of Pe
Benefit Plans (Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
U S And International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 57.00% | 60.00% | |
U S And International Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 20.00% | 20.00% | |
Real Estate And Other Money Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 12.00% | 10.00% | |
Investment Funds Holding Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment in securities, percent | 11.00% | 10.00% | |
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 4,631 | $ 5,260 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,969 | 2,028 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets in the fair value hierarchy | 6,600 | 7,288 | |
Investment funds measured at net asset value | 288 | 310 | |
Total assets | 6,888 | 7,598 | $ 6,457 |
Pension [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 84 | 17 | |
Pension [Member] | Equity Securities [Member] | U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 139 | 146 | |
Pension [Member] | Equity Securities [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 442 | 518 | |
Pension [Member] | Investment funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 5,508 | 6,219 | |
Pension [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 176 | 119 | |
Pension [Member] | Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 232 | 247 | |
Pension [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 19 | 22 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 4,631 | 5,260 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 84 | 17 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Equity Securities [Member] | U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 139 | 146 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Equity Securities [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 442 | 518 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Investment funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 3,595 | 4,191 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 120 | 119 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 232 | 247 | |
Pension [Member] | Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 19 | 22 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,969 | 2,028 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,913 | 2,028 | |
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 56 | ||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 0 | 0 | |
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | International government bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | |||
Pension [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Benefit Payments From Pension Plans) (Details) - Pension [Member] $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 290 |
2,020 | 315 |
2,021 | 319 |
2,022 | 329 |
2,023 | 347 |
2024 - 2028 | $ 1,971 |
Benefit Plans (Amounts Recorded
Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | $ (4,181) | $ (3,321) | $ (4,100) |
Prior service cost | (24) | (31) | (49) |
Net transition obligation | (4) | (5) | (5) |
Deferred income taxes | 563 | 541 | 589 |
Losses to be amortized | (3,646) | (2,816) | (3,565) |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (3,438) | (2,624) | (3,314) |
Prior service cost | (27) | (35) | (53) |
Net transition obligation | (4) | (5) | (5) |
Deferred income taxes | 379 | 327 | 350 |
Losses to be amortized | (3,090) | (2,337) | (3,022) |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (41) | (80) | (73) |
Prior service cost | 3 | 4 | 4 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 20 | 28 | 24 |
Losses to be amortized | (18) | (48) | (45) |
Postemployment [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net losses | (702) | (617) | (713) |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | 0 | 0 |
Deferred income taxes | 164 | 186 | 215 |
Losses to be amortized | $ (538) | $ (431) | $ (498) |
Benefit Plans (Movements in Oth
Benefit Plans (Movements in Other Comprehensive Earnings (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization: | |||
Net losses | $ 247 | $ 248 | $ 257 |
Prior service cost | (1) | 5 | 6 |
Net transition obligation | 1 | ||
Other income/expense: | |||
Net losses | 14 | 6 | 4 |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | (43) | (31) | (43) |
Amortization of net losses, prior service costs and net transition costs | 218 | 228 | 224 |
Other movements during the year: | |||
Prior service cost | 0 | ||
Deferred income taxes | 65 | (17) | 78 |
Net gains (losses) and prior service costs | (1,046) | 523 | (460) |
Accumulated Other Comprehensive Losses [Member] | |||
Other movements during the year: | |||
Net losses | (1,121) | 525 | (517) |
Prior service cost | 8 | 13 | (18) |
Deferred income taxes | 65 | (17) | 78 |
Net gains (losses) and prior service costs | (1,048) | 521 | (457) |
Total movements in other comprehensive earnings (losses) | (830) | 749 | (233) |
Pension [Member] | |||
Amortization: | |||
Net losses | 180 | 175 | 193 |
Prior service cost | 0 | 5 | 6 |
Net transition obligation | 1 | ||
Other income/expense: | |||
Net losses | 14 | 6 | 4 |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | (28) | (10) | (26) |
Amortization of net losses, prior service costs and net transition costs | 167 | 176 | 177 |
Other movements during the year: | |||
Net losses | (1,008) | ||
Prior service cost | 8 | ||
Deferred income taxes | 80 | ||
Net gains (losses) and prior service costs | (920) | ||
Total movements in other comprehensive earnings (losses) | (753) | ||
Pension [Member] | Accumulated Other Comprehensive Losses [Member] | |||
Other movements during the year: | |||
Net losses | 509 | (437) | |
Prior service cost | 13 | (18) | |
Deferred income taxes | (13) | 55 | |
Net gains (losses) and prior service costs | 509 | (400) | |
Total movements in other comprehensive earnings (losses) | 685 | (223) | |
Postretirement [Member] | |||
Amortization: | |||
Net losses | 5 | 5 | 2 |
Prior service cost | (1) | 0 | 0 |
Net transition obligation | 0 | ||
Other income/expense: | |||
Net losses | 0 | 0 | 0 |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | (1) | (1) | 0 |
Amortization of net losses, prior service costs and net transition costs | 3 | 4 | 2 |
Other movements during the year: | |||
Net losses | 34 | (12) | (15) |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | (7) | 5 | 4 |
Net gains (losses) and prior service costs | 27 | (7) | (11) |
Total movements in other comprehensive earnings (losses) | 30 | (3) | (9) |
Postemployment Benefit Plans [Member] | |||
Amortization: | |||
Net losses | 62 | 68 | 62 |
Prior service cost | 0 | 0 | 0 |
Net transition obligation | 0 | ||
Other income/expense: | |||
Net losses | 0 | 0 | 0 |
Prior service cost | 0 | 0 | 0 |
Deferred income taxes | (14) | (20) | (17) |
Amortization of net losses, prior service costs and net transition costs | 48 | 48 | 45 |
Other movements during the year: | |||
Net losses | (147) | 28 | (65) |
Prior service cost | 0 | 0 | |
Deferred income taxes | (8) | (9) | 19 |
Net gains (losses) and prior service costs | (155) | 19 | (46) |
Total movements in other comprehensive earnings (losses) | $ (107) | $ 67 | $ (1) |
Additional Information (Schedul
Additional Information (Schedule of Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional Information [Abstract] | |||
Research and development expense | $ 383 | $ 453 | $ 429 |
Advertising expense | 896 | 830 | 405 |
Foreign currency net transaction losses | 21 | 49 | 272 |
Interest expense | 855 | 1,096 | 1,069 |
Interest income | (190) | (182) | (178) |
Interest expense, net | 665 | 914 | 891 |
Rent expense | $ 312 | $ 313 | $ 284 |
Additional Information (Minimum
Additional Information (Minimum Rental Commitments Under Non-Cancelable Operating Leases) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Additional Information [Abstract] | |
2,019 | $ 147 |
2,020 | 103 |
2,021 | 73 |
2,022 | 52 |
2,023 | 43 |
Thereafter | 354 |
Total | $ 772 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Other comprehensive income (loss), foreign currency transaction and translation gain (loss) arising during period, net of tax | $ (812) | $ 330 | $ (14) |
Gains for amounts excluded from the effectiveness testing recognized in earnings | $ 260 | ||
Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Foreign currency maturity | May 31, 2024 | ||
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts, notional amounts | $ 27,400 | 26,100 | |
Derivative gains to be reclassified to earnings | 21 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts, notional amounts | 14,100 | 11,400 | |
Gains/(losses) from foreign currency contracts not designated as hedging instruments | 405 | 382 | (85) |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts, notional amounts | $ 3,200 | 3,400 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Maturity period | 18 months | ||
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts, notional amounts | $ 10,100 | 11,300 | |
Other comprehensive income (loss), foreign currency transaction and translation gain (loss) arising during period, net of tax | $ 521 | $ (1,725) | $ 430 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Foreign Exchange Contracts) (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 220 | $ 140 |
Derivative Liabilities | 631 | 1,128 |
Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 54 | 84 |
Designated as Hedging Instrument [Member] | Other accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 47 | 197 |
Designated as Hedging Instrument [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 99 | 34 |
Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 525 | 880 |
Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 67 | 22 |
Not Designated as Hedging Instrument [Member] | Other accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 46 | 37 |
Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 13 | $ 14 |
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) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives from Cash Flow Hedging | $ 28 | $ (52) | $ 12 |
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives from Net Investment Hedging | 324 | (1,644) | 296 |
Total Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | 352 | (1,696) | 308 |
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 23 | 13 | (33) |
Net revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 18 | 60 | (38) |
Cost of sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 0 | 1 | 46 |
Marketing, administration and research costs [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | 6 | (7) | (11) |
Interest expense, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings | $ (1) | $ (41) | $ (30) |
Financial Instruments (Pre-Tax
Financial Instruments (Pre-Tax Effect of Foreign Exchange Contracts Designated as Other Derivatives) (Details) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Contract [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | $ 62 | $ (60) | $ (24) |
Interest expense, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Earnings | $ 62 | $ (60) | $ (24) |
Financial Instruments (Hedging
Financial Instruments (Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses) Net of Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | |||
Derivative (gains)/losses transferred to earnings | $ (31) | $ (11) | $ 30 |
Change in fair value | 24 | (44) | 8 |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | |||
Hedging Activity, Affecting Accumulated Other Comprehensive Income [Roll Forward] | |||
Gain as of January 1, | 42 | 97 | 59 |
Derivative (gains)/losses transferred to earnings | (31) | (11) | 30 |
Change in fair value | 24 | (44) | 8 |
Gain as of December 31, | $ 35 | $ 42 | $ 97 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Capital lease obligations, carrying value | $ 33 | $ 28 |
Debt excluding short-term borrowings and capital lease obligations, carrying value | $ 30,996 | $ 33,812 |
Fair Value Measurements (Aggreg
Fair Value Measurements (Aggregate Fair Value of Derivative Financial Instruments And Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | ||
Assets: | ||
Equity securities | $ 288 | |
Foreign exchange contracts | 0 | $ 0 |
Pension plan assets | 4,631 | 5,260 |
Total assets in fair value hierarchy | 4,919 | 5,260 |
Liabilities: | ||
Debt | 30,997 | 35,685 |
Foreign exchange contracts | 0 | 0 |
Total liabilities | 30,997 | 35,685 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Equity securities | 0 | |
Foreign exchange contracts | 220 | 140 |
Pension plan assets | 1,969 | 2,028 |
Total assets in fair value hierarchy | 2,189 | 2,168 |
Liabilities: | ||
Debt | 165 | 171 |
Foreign exchange contracts | 631 | 1,128 |
Total liabilities | 796 | 1,299 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Equity securities | 0 | |
Foreign exchange contracts | 0 | 0 |
Pension plan assets | 0 | 0 |
Total assets in fair value hierarchy | 0 | 0 |
Liabilities: | ||
Debt | 0 | 0 |
Foreign exchange contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Assets: | ||
Pension plan assets measured at net asset value | 288 | 310 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Assets: | ||
Equity securities | 288 | |
Foreign exchange contracts | 220 | 140 |
Pension plan assets | 6,600 | 7,288 |
Total assets in fair value hierarchy | 7,108 | 7,428 |
Total assets in fair value hierarchy | 7,396 | 7,738 |
Liabilities: | ||
Debt | 31,162 | 35,856 |
Foreign exchange contracts | 631 | 1,128 |
Total liabilities | $ 31,793 | $ 36,984 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses (Components of Accumulated Other Comprehensive Losses, Net Of Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (10,739) | $ (10,230) | $ (10,900) | $ (11,476) |
Marketing, administration and research costs | 7,408 | 6,647 | 6,317 | |
Currency translation adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | (6,500) | (5,761) | (6,091) | |
Currency translation adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Marketing, administration and research costs | 2 | (5) | ||
Pension and other benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | 3,646 | 2,816 | 3,565 | |
Derivatives accounted for as hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | 35 | 42 | 97 | |
Accumulated Other Comprehensive Losses [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total accumulated other comprehensive losses | $ (10,111) | $ (8,535) | $ (9,559) | $ (9,402) |
Contingencies (Tobacco-Related
Contingencies (Tobacco-Related Litigation) (Narrative) (Details) | Dec. 31, 2018litigation_case |
Loss Contingencies [Line Items] | |
Number of cases decided in favor of PM | 491 |
Number of cases decided | 13 |
Cases Remaining On Appeal [Member] | |
Loss Contingencies [Line Items] | |
Number of cases decided | 4 |
Number of cases on appeal | 4 |
Case Decided In Favor Of Plaintiff [Member] | |
Loss Contingencies [Line Items] | |
Number of cases decided | 9 |
Contingencies (Number of Tobacc
Contingencies (Number of Tobacco-Related Cases Pending Against us and/or Our Subsidiaries or Indemnitees) (Details) - litigation_case | Feb. 04, 2019 | Feb. 09, 2018 | Dec. 31, 2016 |
Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 11 | ||
Combustible Products [Member] | Individual Smoking And Health Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 57 | 64 | |
Combustible Products [Member] | Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 11 | 11 | |
Combustible Products [Member] | Health Care Cost Recovery Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 16 | 16 | |
Combustible Products [Member] | Label Related Class Action [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | 0 | |
Combustible Products [Member] | Individual Label Related Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | 3 | |
Combustible Products [Member] | Public Civil Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
Combustible Products [Member] | Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 55 | ||
Combustible Products [Member] | Subsequent Event [Member] | Smoking And Health Class Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 10 | ||
Combustible Products [Member] | Subsequent Event [Member] | Health Care Cost Recovery Actions [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 16 | ||
Combustible Products [Member] | Subsequent Event [Member] | Label Related Class Action [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 1 | ||
Combustible Products [Member] | Subsequent Event [Member] | Individual Label Related Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Cases brought against PM | 7 | ||
Combustible Products [Member] | 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) | Aug. 05, 2016USD ($) | Aug. 05, 2016ARS ($) | May 27, 2015USD ($) | May 27, 2015CAD ($) | Oct. 30, 2015USD ($) | Oct. 30, 2015CAD ($) | Jul. 31, 2015 | Jun. 30, 2015 | Apr. 30, 2004USD ($) | Apr. 30, 2004BRL (R$) | Dec. 31, 2018 |
Brazil [Member] | Smoking And Health Class Actions [Member] | The Smoker Health Defense Association (ADESF) [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Interest rate on damages, monthly | 1.00% | 1.00% | |||||||||
Brazil [Member] | 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 | $ 273 | R$ 1000 | |||||||||
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 Of Verdict | 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 $273) 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. In March 2017, plaintiff filed an en banc appeal 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. Both appeals are still pending. | ||||||||||
Canada [Member] | Smoking And Health Class Actions [Member] | Cases With Verdicts And Post Trial Developments [Member] | Cecilia Letourneau [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Date Of Verdict | May 27, 2015 | ||||||||||
Verdict | On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Létourneau class on liability and awarded a total of CAD 131 million (approximately $100 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 Létourneau 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 $172.5 million) to cover both the Létourneau and Blais cases. The hearing for the merits appeal took place 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 Of Verdict | 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 $2.37 billion)). The trial court awarded CAD 90,000 (approximately $69,000) in punitive damages, allocating CAD 30,000 (approximately $23,000) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $763 million) of the compensatory damage award, CAD 200 million (approximately $153 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 Létourneau case, CAD 226 million (approximately $172.5 million). The hearing for the merits appeal took place in November 2016. (See below for further detail.) | ||||||||||
Canada [Member] | Smoking And Health Class Actions [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 | $ 100,000,000 | $ 131,000,000 | |||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | |||||||||
Canada [Member] | Smoking And Health Class Actions [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages awarded | $ 35,000,000 | $ 46,000,000 | |||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | |||||||||
Canada [Member] | Smoking And Health Class Actions [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] | Smoking And Health Class Actions [Member] | Cecilia Letourneau [Member] | Pending Litigation [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] | Smoking And Health Class Actions [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 | $ 69,000 | $ 90,000 | |||||||||
Compensatory damages awarded | 11,800,000,000 | 15,500,000,000 | |||||||||
Awarded compensatory damages that are to be deposited into trust | $ 763,000,000 | $ 1,000,000,000 | |||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | |||||||||
Canada [Member] | Smoking And Health Class Actions [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 | $ 23,000 | $ 30,000 | |||||||||
Compensatory damages awarded | $ 2,370,000,000 | $ 3,100,000,000 | |||||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | |||||||||
Awarded compensatory damages that are to be deposited into trust | $ 153,000,000 | $ 200,000,000 | |||||||||
Payment period for compensatory damages to be deposited into trust | 60 days | 60 days | |||||||||
Canada [Member] | Smoking And Health Class Actions [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] | Smoking And Health Class Actions [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 | $ 172,500,000 | $ 226,000,000 | |||||||||
Argentina [Member] | Smoking And Health Individual Actions [Member] | Cases With Verdicts And Post Trial Developments [Member] | Hugo Lespada [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Date Of Verdict | August 5, 2016 | ||||||||||
Verdict | On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $2,960), plus interest, in compensatory and moral damages. The trial court found that our subsidiary failed to warn plaintiff of the risk of becoming addicted to cigarettes. | ||||||||||
Post-Trial Developments | On August 23, 2016, our subsidiary filed its notice of appeal. On October 31, 2017, the Civil and Commercial Court of Appeals of Mar del Plata ruled that plaintiff's claim was barred by the statute of limitations and it reversed the trial court's decision. On November 28, 2017, plaintiff filed an extraordinary appeal of the reversal of the trial court's decision to the Supreme Court of the Province of Buenos Aires. | ||||||||||
Argentina [Member] | Smoking And Health Individual Actions [Member] | Hugo Lespada [Member] | Judicial Ruling [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages awarded | $ 2,960 | $ 110,000 |
Contingencies (Smoking and Heal
Contingencies (Smoking and Health Litigation) (Narrative) (Details) | May 27, 2015USD ($)manufacturerplaintiff | May 27, 2015CAD ($)manufacturerplaintiff | Jun. 20, 2012cigarette | Jul. 10, 2009cigarette | Mar. 31, 2017USD ($) | Mar. 31, 2017CAD ($) | Oct. 30, 2015USD ($)installment | Oct. 30, 2015CAD ($)installment | Aug. 31, 2015USD ($) | Aug. 31, 2015CAD ($) | Jul. 31, 2015 | Jun. 30, 2015 | Apr. 30, 2004USD ($) | Apr. 30, 2004BRL (R$) | Feb. 04, 2019litigation_case | Feb. 09, 2018litigation_case | Dec. 31, 2016litigation_case |
Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 11 | ||||||||||||||||
Brazil [Member] | The Smoker Health Defense Association (ADESF) [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Interest rate on damages, monthly | 1.00% | 1.00% | |||||||||||||||
Brazil [Member] | 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 | $ 273 | R$ 1000 | |||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | Smoking And Health Class Actions [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] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | $ 100,000,000 | $ 131,000,000 | |||||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | 60 days | |||||||||||||||
Canada [Member] | Cecilia Letourneau [Member] | Judicial Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | $ 35,000,000 | $ 46,000,000 | |||||||||||||||
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] | Smoking And Health Class Actions [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] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payment period for awarded punitive damages to be deposited into trust | 60 days | ||||||||||||||||
Period between addiction warning and claim | 3 years | 3 years | |||||||||||||||
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] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of consecutive quarterly installment | installment | 6 | 6 | |||||||||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Imperial Tobacco Ltd. [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of consecutive quarterly installment | installment | 7 | 7 | |||||||||||||||
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] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Amount of security ordered to be furnished | $ 172,500,000 | $ 226,000,000 | |||||||||||||||
Amount of security to be furnished in each consecutive quarterly installment | 28,700,000 | 37,600,000 | |||||||||||||||
Amount of security furnished in each quarterly installment | $ 28,700,000 | $ 37,600,000 | |||||||||||||||
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] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Amount of security ordered to be furnished | 578,000,000 | 758,000,000 | |||||||||||||||
Amount of security to be furnished in each consecutive quarterly installment | $ 82,400,000 | $ 108,000,000 | |||||||||||||||
Canada [Member] | Cecilia Letourneau & Conseil Quebecois Sur La Tabac Et La Sante and Jean-Yves Blais Cases [Member] | Under Advisement [Member] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Motion filed by plaintiffs to secure judgment, letters of credit amount to be placed trust | $ 3,800,000,000 | $ 5,000,000,000 | |||||||||||||||
Canada [Member] | Conseil Quebecois Sur Le Tabac Et La Sante and Jean-Yves Blais [Member] | Smoking And Health Class Actions [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] | Imperial Tobacco Ltd., Rothmans, Benson And Hedges Inc., And JTI Macdonald Corp. [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | $ 69,000 | $ 90,000 | |||||||||||||||
Compensatory damages awarded | 11,800,000,000 | 15,500,000,000 | |||||||||||||||
Awarded compensatory damages that are to be deposited into trust | $ 763,000,000 | $ 1,000,000,000 | |||||||||||||||
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] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Punitive damages awarded | $ 23,000 | $ 30,000 | |||||||||||||||
Compensatory damages awarded | $ 2,370,000,000 | $ 3,100,000,000 | |||||||||||||||
Damages allocated to subsidiary (percent) | 20.00% | 20.00% | |||||||||||||||
Awarded compensatory damages that are to be deposited into trust | $ 153,000,000 | $ 200,000,000 | |||||||||||||||
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] | Appellate Ruling [Member] | Rothmans, Benson, And Hedges Inc. (RBH) [Member] | Smoking And Health Class Actions [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] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Payment period for damages to be deposited into trust | 60 days | ||||||||||||||||
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] | |||||||||||||||||
Loss Contingency, Plaintiff Allegation, Minimum Number Of Cigarettes Smoked | cigarette | 25,000 | ||||||||||||||||
Combustible Products [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 57 | 64 | |||||||||||||||
Combustible Products [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 11 | 11 | |||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 55 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 10 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Argentina [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 32 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Brazil [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 8 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Brazil [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Canada [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 2 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Canada [Member] | Smoking And Health Class Actions [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 9 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Chile [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 4 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Costa Rica [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Italy [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 3 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | The Philippines [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Poland [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 2 | ||||||||||||||||
Combustible Products [Member] | Subsequent Event [Member] | Turkey [Member] | Individual Smoking And Health Cases [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Cases brought against PM | 1 | ||||||||||||||||
Combustible Products [Member] | 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) (Narrative) (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 | Feb. 04, 2019litigation_case | Feb. 09, 2018litigation_case | Dec. 31, 2016litigation_case |
Korea [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, number of patients | patient | 3,484 | ||||||||
Korea [Member] | Subsidiary And Other Korean Manufacturers [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ | $ 53.7 | ||||||||
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 Oyo 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 | ||||||||
Combustible Products [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 16 | 16 | |||||||
Combustible Products [Member] | Subsequent Event [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 16 | ||||||||
Combustible Products [Member] | Subsequent Event [Member] | Canada [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 10 | ||||||||
Combustible Products [Member] | Subsequent Event [Member] | Korea [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 1 | ||||||||
Combustible Products [Member] | Subsequent Event [Member] | Nigeria [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cases brought against PM | 5 |
Contingencies (Label-Related Ca
Contingencies (Label-Related Cases) (Narrative) (Details) plaintiff in Millions | Jul. 18, 2017plaintiff | Feb. 04, 2019litigation_case | Feb. 09, 2018litigation_case | Dec. 31, 2016litigation_case |
Purported Label Related Class Action [Member] | Aharon Ringer V. Philip Morris Ltd. And Globrands Ltd. [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimated number of members in purported class | plaintiff | 7 | |||
Combustible Products [Member] | Individual Label Related Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cases brought against PM | 1 | 3 | ||
Combustible Products [Member] | Subsequent Event [Member] | Individual Label Related Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cases brought against PM | 7 | |||
Combustible Products [Member] | Subsequent Event [Member] | Individual Label Related Cases [Member] | Italy [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cases brought against PM | 1 | |||
Combustible Products [Member] | Subsequent Event [Member] | Individual Label Related Cases [Member] | Chile [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cases brought against PM | 6 | |||
Combustible Products [Member] | Subsequent Event [Member] | Purported Label Related Class Action [Member] | Israel [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cases brought against PM | 1 |
Contingencies (Public Civil Act
Contingencies (Public Civil Actions) (Narrative) (Details) - Combustible Products [Member] - Public Civil Actions [Member] - litigation_case | Feb. 04, 2019 | Feb. 09, 2018 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | |||
Cases brought against PM | 2 | 2 | |
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 |
Contingencies (Other Litigation
Contingencies (Other Litigation) (Narrative) (Details) - Other Litigation [Member] $ in Millions, ₩ in Billions, ฿ in Billions | Nov. 29, 2017USD ($) | Nov. 29, 2017THB (฿) | Jan. 26, 2017USD ($) | Jan. 26, 2017THB (฿) | Jan. 18, 2016USD ($) | Jan. 18, 2016THB (฿) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Mar. 31, 2017USD ($) | Mar. 31, 2017KRW (₩) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) |
The Department of Special Investigations of the Government of Thailand [Member] | Thailand [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of defendants | 8 | 8 | ||||||||||
Fines or demanded payments sought | $ 814 | ฿ 25.6 | $ 630 | ฿ 19.8 | ||||||||
The South Korean Board Of Audit And Inspection [Member] | South Korea [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Amounts paid | $ 154 | ₩ 172 | $ 243 | ₩ 272 | $ 89 | ₩ 100 | ||||||
Pending Litigation [Member] | The Department of Special Investigations of the Government of Thailand [Member] | Thailand [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, damages sought, value | $ 2,570 | ฿ 80.8 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Gross Amounts Recognized | $ 220 | $ 140 |
Gross Amount Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 220 | 140 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Financial Instruments | (124) | (50) |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Cash Collateral Received/Pledged | (80) | (78) |
Net Amount | 16 | 12 |
Liabilities | ||
Gross Amounts Recognized | 631 | 1,128 |
Gross Amount Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 631 | 1,128 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Financial Instruments | (124) | (50) |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Cash Collateral Received/Pledged | (427) | (1,004) |
Net Amount | $ 80 | $ 74 |
Sale of Accounts Receivable (De
Sale of Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sale of Accounts Receivable [Abstract] | |||
Servicing liability | $ 0 | $ 0 | |
Trade receivables sold and derecognized from the Consolidated Balance Sheets | 11,000 | 10,000 | |
Trade receivables sold and derecognized that remain uncollected | 1,000 | 1,100 | $ 700 |
Loss on sale of trade receivables | $ 0 | $ 0 | $ 0 |
New Accounting Standards (Reven
New Accounting Standards (Revenue Recognition) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net revenues | $ 79,823 | $ 78,098 | $ 74,953 | ||||||||
Excises taxes | 50,198 | 49,350 | 48,268 | ||||||||
Net revenues | $ 7,499 | $ 7,504 | $ 7,726 | $ 6,896 | $ 8,294 | $ 7,473 | $ 6,917 | $ 6,064 | $ 29,625 | 28,748 | 26,685 |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net revenues | 78,098 | 74,953 | |||||||||
Excises taxes | $ 49,350 | $ 48,268 |
New Accounting Standards (Finan
New Accounting Standards (Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investments in unconsolidated subsidiaries and equity securities (Notes 4 & 16 ) | $ 1,269 | $ 1,074 | |
Deferred income taxes | 898 | 799 | |
Earnings reinvested in the business | $ 31,014 | $ 29,859 | |
Accounting Standards Update 2016-01 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investments in unconsolidated subsidiaries and equity securities (Notes 4 & 16 ) | $ 301 | ||
Deferred income taxes | 63 | ||
Earnings reinvested in the business | $ 238 |
New Accounting Standards (Lease
New Accounting Standards (Leases) (Details) $ in Billions | Jan. 01, 2019USD ($) |
Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lease liabilities and the corresponding right-of-use assets | $ 0.7 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenues (Notes 2 & 21) | $ 7,499 | $ 7,504 | $ 7,726 | $ 6,896 | $ 8,294 | $ 7,473 | $ 6,917 | $ 6,064 | $ 29,625 | $ 28,748 | $ 26,685 |
Gross profit | 4,718 | 4,886 | 4,982 | 4,281 | 5,293 | 4,738 | 4,398 | 3,887 | 18,867 | 18,316 | 17,294 |
Net earnings attributable to PMI | $ 1,910 | $ 2,247 | $ 2,198 | $ 1,556 | $ 694 | $ 1,970 | $ 1,781 | $ 1,590 | $ 7,911 | $ 6,035 | $ 6,967 |
Per share data: | |||||||||||
Basic EPS (in dollars per share) | $ 1.23 | $ 1.44 | $ 1.41 | $ 1 | $ 0.44 | $ 1.27 | $ 1.14 | $ 1.02 | $ 5.08 | $ 3.88 | $ 4.48 |
Diluted EPS (in dollars per share) | 1.23 | 1.44 | 1.41 | 1 | 0.44 | 1.27 | 1.14 | 1.02 | 5.08 | 3.88 | 4.48 |
Dividends declared (in dollars per share) | $ 1.14 | $ 1.14 | $ 1.14 | $ 1.07 | $ 1.07 | $ 1.07 | $ 1.04 | $ 1.04 | $ 4.49 | $ 4.22 | $ 4.12 |