10-Q 1 pm-20230930.htm 10-Q pm-20230930
000141332912/312023Q3FALSEhttp://fasb.org/us-gaap/2023#InterestIncomeExpenseNethttp://fasb.org/us-gaap/2023#InterestIncomeExpenseNet00014133292023-01-012023-09-300001413329us-gaap:CommonStockMember2023-01-012023-09-300001413329pm:A3.600Notesdue2023Member2023-01-012023-09-300001413329pm:A2.875Notesdue20241Member2023-01-012023-09-300001413329pm:A2.875Notesdue20242Member2023-01-012023-09-300001413329pm:A0.625Notesdue2024Member2023-01-012023-09-300001413329pm:A3.250Notesdue2024Member2023-01-012023-09-300001413329pm:A2.750Notesdue2025Member2023-01-012023-09-300001413329pm:A3.375Notesdue2025Member2023-01-012023-09-300001413329pm:A2.750Notesdue2026Member2023-01-012023-09-300001413329pm:A2.875Notesdue2026Member2023-01-012023-09-300001413329pm:A0.125Notesdue2026Member2023-01-012023-09-300001413329pm:A3.125Notesdue2027Member2023-01-012023-09-300001413329pm:A3.125Notesdue2028Member2023-01-012023-09-300001413329pm:A2.875Notesdue2029Member2023-01-012023-09-300001413329pm:A3.375Notesdue2029Member2023-01-012023-09-300001413329pm:A0.800Notesdue2031Member2023-01-012023-09-300001413329pm:A3.125Notesdue2033Member2023-01-012023-09-300001413329pm:A2.000Notesdue2036Member2023-01-012023-09-300001413329pm:A1.875Notesdue2037Member2023-01-012023-09-300001413329pm:A6.375Notesdue2038Member2023-01-012023-09-300001413329pm:A1.450Notesdue2039Member2023-01-012023-09-300001413329pm:A4.375Notesdue2041Member2023-01-012023-09-300001413329pm:A4.500Notesdue2042Member2023-01-012023-09-300001413329pm:A3.875Notesdue2042Member2023-01-012023-09-300001413329pm:A4.125Notesdue2043Member2023-01-012023-09-300001413329pm:A4.875Notesdue2043Member2023-01-012023-09-300001413329pm:A4.250Notesdue2044Member2023-01-012023-09-3000014133292023-10-20xbrli:sharesiso4217:USD00014133292022-01-012022-09-30iso4217:USDxbrli:shares0001413329us-gaap:RelatedPartyMember2023-01-012023-09-300001413329us-gaap:RelatedPartyMember2022-01-012022-09-300001413329pm:EAAUPMIDFSegmentMembercountry:KR2023-01-012023-09-3000014133292023-07-012023-09-3000014133292022-07-012022-09-300001413329us-gaap:RelatedPartyMember2023-07-012023-09-300001413329us-gaap:RelatedPartyMember2022-07-012022-09-3000014133292023-09-3000014133292022-12-310001413329us-gaap:RelatedPartyMember2023-09-300001413329us-gaap:RelatedPartyMember2022-12-310001413329pm:SwedishMatchABMember2023-01-012023-09-300001413329pm:SwedishMatchABMember2022-01-012022-09-3000014133292021-12-3100014133292022-09-300001413329us-gaap:CommonStockMember2021-12-310001413329us-gaap:AdditionalPaidInCapitalMember2021-12-310001413329us-gaap:RetainedEarningsMember2021-12-310001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001413329us-gaap:TreasuryStockCommonMember2021-12-310001413329us-gaap:NoncontrollingInterestMember2021-12-310001413329us-gaap:RetainedEarningsMember2022-01-012022-09-300001413329us-gaap:NoncontrollingInterestMember2022-01-012022-09-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001413329us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001413329us-gaap:TreasuryStockCommonMember2022-01-012022-09-300001413329us-gaap:CommonStockMember2022-09-300001413329us-gaap:AdditionalPaidInCapitalMember2022-09-300001413329us-gaap:RetainedEarningsMember2022-09-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001413329us-gaap:TreasuryStockCommonMember2022-09-300001413329us-gaap:NoncontrollingInterestMember2022-09-300001413329us-gaap:CommonStockMember2022-12-310001413329us-gaap:AdditionalPaidInCapitalMember2022-12-310001413329us-gaap:RetainedEarningsMember2022-12-310001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001413329us-gaap:TreasuryStockCommonMember2022-12-310001413329us-gaap:NoncontrollingInterestMember2022-12-310001413329us-gaap:RetainedEarningsMember2023-01-012023-09-300001413329us-gaap:NoncontrollingInterestMember2023-01-012023-09-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001413329us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001413329us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001413329us-gaap:CommonStockMember2023-09-300001413329us-gaap:AdditionalPaidInCapitalMember2023-09-300001413329us-gaap:RetainedEarningsMember2023-09-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001413329us-gaap:TreasuryStockCommonMember2023-09-300001413329us-gaap:NoncontrollingInterestMember2023-09-300001413329us-gaap:CommonStockMember2022-06-300001413329us-gaap:AdditionalPaidInCapitalMember2022-06-300001413329us-gaap:RetainedEarningsMember2022-06-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001413329us-gaap:TreasuryStockCommonMember2022-06-300001413329us-gaap:NoncontrollingInterestMember2022-06-3000014133292022-06-300001413329us-gaap:RetainedEarningsMember2022-07-012022-09-300001413329us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001413329us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001413329us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001413329us-gaap:CommonStockMember2023-06-300001413329us-gaap:AdditionalPaidInCapitalMember2023-06-300001413329us-gaap:RetainedEarningsMember2023-06-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001413329us-gaap:TreasuryStockCommonMember2023-06-300001413329us-gaap:NoncontrollingInterestMember2023-06-3000014133292023-06-300001413329us-gaap:RetainedEarningsMember2023-07-012023-09-300001413329us-gaap:NoncontrollingInterestMember2023-07-012023-09-300001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001413329us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001413329us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001413329pm:GeographicalSegmentMember2023-01-012023-09-30pm:segment0001413329pm:GeographicalSegmentMember2022-01-012022-12-310001413329pm:NoncontrollingInterestPurchasePhilipMorrisTtnMamulleriSanayiVeTicaretAMember2022-03-31xbrli:pure0001413329pm:NoncontrollingInterestPurchasePhilipMorrisPazarlamaVeSatAMember2022-03-310001413329pm:NoncontrollingInterestPurchaseMember2022-01-012022-03-310001413329pm:NoncontrollingInterestPurchaseMember2022-03-310001413329us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-3100014133292023-01-012023-01-310001413329us-gaap:AdditionalPaidInCapitalMember2023-01-012023-01-310001413329us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-01-310001413329pm:SwedishMatchABMember2022-11-110001413329pm:SwedishMatchABMember2022-12-310001413329pm:SwedishMatchABMember2022-11-112022-11-110001413329pm:SwedishMatchABMember2022-11-112022-12-310001413329pm:SwedishMatchABMember2023-02-170001413329pm:SwedishMatchABMember2023-09-122023-09-12iso4217:SEKxbrli:shares0001413329pm:SwedishMatchABMember2022-11-112023-09-300001413329pm:SwedishMatchABMember2023-09-300001413329pm:SwedishMatchABMember2022-11-122023-03-310001413329pm:SwedishMatchABMember2022-10-012022-12-310001413329us-gaap:TrademarksMemberpm:SwedishMatchABMember2023-09-302023-09-300001413329us-gaap:TrademarksMemberpm:SwedishMatchABMembersrt:MinimumMember2023-09-302023-09-300001413329us-gaap:TrademarksMembersrt:MaximumMemberpm:SwedishMatchABMember2023-09-302023-09-300001413329us-gaap:TrademarksMemberpm:SwedishMatchABMember2023-09-302023-09-300001413329us-gaap:TechnologyBasedIntangibleAssetsMemberpm:SwedishMatchABMember2023-09-302023-09-300001413329us-gaap:CustomerRelationshipsMemberpm:SwedishMatchABMembersrt:MinimumMember2023-09-302023-09-300001413329srt:MaximumMemberus-gaap:CustomerRelationshipsMemberpm:SwedishMatchABMember2023-09-302023-09-300001413329us-gaap:CustomerRelationshipsMemberpm:SwedishMatchABMember2023-09-302023-09-300001413329pm:SwedishMatchABMember2022-01-012022-12-310001413329srt:ProFormaMemberpm:PMIAndSwedishMatchMember2022-01-012022-12-310001413329srt:ProFormaMemberpm:PMIAndSwedishMatchMember2021-01-012021-12-310001413329pm:PMIAndSwedishMatchMember2022-01-012022-12-310001413329pm:PMIAndSwedishMatchMember2021-01-012021-12-310001413329pm:AltriaGroupMember2022-10-200001413329pm:AltriaGroupMember2023-07-140001413329country:UApm:WarInUkraineMember2023-09-300001413329country:RUpm:WarInUkraineMember2023-09-300001413329country:UApm:WarInUkraineMemberus-gaap:CostOfSalesMember2023-01-012023-09-300001413329country:UApm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2023-01-012023-09-300001413329country:UApm:WarInUkraineMember2023-01-012023-09-300001413329country:UApm:WarInUkraineMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001413329country:UApm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2022-01-012022-09-300001413329country:UApm:WarInUkraineMember2022-01-012022-09-300001413329country:RUpm:WarInUkraineMemberus-gaap:CostOfSalesMember2023-01-012023-09-300001413329country:RUpm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2023-01-012023-09-300001413329country:RUpm:WarInUkraineMember2023-01-012023-09-300001413329country:RUpm:WarInUkraineMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001413329country:RUpm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2022-01-012022-09-300001413329country:RUpm:WarInUkraineMember2022-01-012022-09-300001413329pm:WarInUkraineMemberus-gaap:CostOfSalesMember2023-01-012023-09-300001413329pm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2023-01-012023-09-300001413329pm:WarInUkraineMember2023-01-012023-09-300001413329pm:WarInUkraineMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001413329pm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2022-01-012022-09-300001413329pm:WarInUkraineMember2022-01-012022-09-300001413329country:UApm:WarInUkraineMemberus-gaap:CostOfSalesMember2023-07-012023-09-300001413329country:UApm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2023-07-012023-09-300001413329country:UApm:WarInUkraineMember2023-07-012023-09-300001413329country:UApm:WarInUkraineMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001413329country:UApm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2022-07-012022-09-300001413329country:UApm:WarInUkraineMember2022-07-012022-09-300001413329country:RUpm:WarInUkraineMemberus-gaap:CostOfSalesMember2023-07-012023-09-300001413329country:RUpm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2023-07-012023-09-300001413329country:RUpm:WarInUkraineMember2023-07-012023-09-300001413329country:RUpm:WarInUkraineMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001413329country:RUpm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2022-07-012022-09-300001413329country:RUpm:WarInUkraineMember2022-07-012022-09-300001413329pm:WarInUkraineMemberus-gaap:CostOfSalesMember2023-07-012023-09-300001413329pm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2023-07-012023-09-300001413329pm:WarInUkraineMember2023-07-012023-09-300001413329pm:WarInUkraineMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001413329pm:WarInUkraineMemberpm:MarketingAdministrationAndResearchCostsMember2022-07-012022-09-300001413329pm:WarInUkraineMember2022-07-012022-09-300001413329pm:A2022PerformanceIncentivePlanMember2022-05-310001413329pm:A2022PerformanceIncentivePlanMember2023-09-300001413329pm:A2017NonEmployeeDirectorsPlanMember2017-05-310001413329pm:A2017NonEmployeeDirectorsPlanMember2023-09-300001413329us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001413329us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001413329us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001413329us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001413329us-gaap:RestrictedStockUnitsRSUMember2023-09-30pm:year0001413329us-gaap:RestrictedStockUnitsRSUMemberpm:GrantDateFairValueMember2023-01-012023-09-300001413329pm:FairValueMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001413329us-gaap:PerformanceSharesMember2023-01-012023-09-300001413329us-gaap:PerformanceSharesMember2023-09-30pm:performanceMetric0001413329us-gaap:PerformanceSharesMembersrt:MinimumMember2023-01-012023-09-300001413329srt:MaximumMemberus-gaap:PerformanceSharesMember2023-01-012023-09-300001413329pm:PerformanceShareUnitsOtherPerformanceMetricsMember2023-01-012023-09-300001413329pm:PerformanceShareUnitsTSRPerformanceMetricMember2023-01-012023-09-300001413329us-gaap:PerformanceSharesMember2022-01-012022-09-300001413329pm:PerformanceShareUnitsOtherPerformanceMetricsMember2022-01-012022-09-300001413329pm:PerformanceShareUnitsTSRPerformanceMetricMember2022-01-012022-09-300001413329pm:GrantDateFairValueMemberus-gaap:PerformanceSharesMember2023-01-012023-09-300001413329pm:FairValueMemberus-gaap:PerformanceSharesMember2023-01-012023-09-300001413329us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300001413329us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300001413329us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300001413329us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300001413329pm:PostemploymentBenefitPlansMember2023-01-012023-09-300001413329pm:PostemploymentBenefitPlansMember2022-01-012022-09-300001413329pm:PostemploymentBenefitPlansMember2023-07-012023-09-300001413329pm:PostemploymentBenefitPlansMember2022-07-012022-09-300001413329us-gaap:PostretirementBenefitCostsMember2023-01-012023-09-300001413329us-gaap:PostretirementBenefitCostsMember2022-01-012022-09-300001413329us-gaap:PostretirementBenefitCostsMember2023-07-012023-09-300001413329us-gaap:PostretirementBenefitCostsMember2022-07-012022-09-3000014133292022-04-012022-06-300001413329pm:WellnessAndHealthcareSegmentMember2023-01-012023-09-300001413329us-gaap:InProcessResearchAndDevelopmentMember2023-01-012023-09-300001413329pm:EuropeSegmentMember2022-12-310001413329pm:SSEACISMEASegmentMember2022-12-310001413329pm:EAAUPMIDFSegmentMember2022-12-310001413329pm:AmericasSegmentMember2022-12-310001413329pm:SwedishMatchABSegmentMember2022-12-310001413329pm:WellnessAndHealthcareSegmentMember2022-12-310001413329pm:EuropeSegmentMember2023-01-012023-09-300001413329pm:SSEACISMEASegmentMember2023-01-012023-09-300001413329pm:EAAUPMIDFSegmentMember2023-01-012023-09-300001413329pm:AmericasSegmentMember2023-01-012023-09-300001413329pm:SwedishMatchABSegmentMember2023-01-012023-09-300001413329pm:EuropeSegmentMember2023-09-300001413329pm:SSEACISMEASegmentMember2023-09-300001413329pm:EAAUPMIDFSegmentMember2023-09-300001413329pm:AmericasSegmentMember2023-09-300001413329pm:SwedishMatchABSegmentMember2023-09-300001413329pm:WellnessAndHealthcareSegmentMember2023-09-300001413329us-gaap:TrademarksMember2023-09-300001413329us-gaap:TrademarksMember2022-12-310001413329us-gaap:DevelopedTechnologyRightsMember2023-09-300001413329us-gaap:DevelopedTechnologyRightsMember2022-12-310001413329us-gaap:OtherIntangibleAssetsMember2023-09-300001413329us-gaap:OtherIntangibleAssetsMember2022-12-310001413329us-gaap:CostOfSalesMember2023-01-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMember2023-01-012023-09-300001413329us-gaap:DevelopedTechnologyRightsMemberpm:WellnessAndHealthcareSegmentMember2022-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2023-09-300001413329us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2022-12-310001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-09-300001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001413329us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329pm:OtherAccruedLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329pm:OtherAccruedLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:InterestRateContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:InterestRateContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:InterestRateContractMemberpm:OtherAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:InterestRateContractMemberpm:OtherAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:OtherAssetsMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:OtherAssetsMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300001413329us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001413329us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2023-09-300001413329us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2022-12-310001413329pm:OtherAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2023-09-300001413329pm:OtherAccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2022-12-310001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-09-300001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-12-310001413329us-gaap:NondesignatedMemberpm:OtherAccruedLiabilitiesMemberus-gaap:ForeignExchangeContractMember2023-09-300001413329us-gaap:NondesignatedMemberpm:OtherAccruedLiabilitiesMemberus-gaap:ForeignExchangeContractMember2022-12-310001413329us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-09-300001413329us-gaap:OtherAssetsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001413329us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-09-300001413329us-gaap:OtherLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310001413329us-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329us-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2023-01-012023-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2022-01-012022-09-300001413329us-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329us-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329us-gaap:InterestRateContractMember2023-01-012023-09-300001413329us-gaap:InterestRateContractMember2022-01-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2023-01-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2022-01-012022-09-300001413329us-gaap:CommodityContractMember2023-01-012023-09-300001413329us-gaap:CommodityContractMember2022-01-012022-09-300001413329us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2023-01-012023-09-300001413329us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2022-01-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329us-gaap:NondesignatedMemberpm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329us-gaap:NondesignatedMemberpm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-01-012023-09-300001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001413329us-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329us-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2023-07-012023-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2022-07-012022-09-300001413329us-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329us-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329us-gaap:InterestRateContractMember2023-07-012023-09-300001413329us-gaap:InterestRateContractMember2022-07-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2023-07-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2022-07-012022-09-300001413329us-gaap:CommodityContractMember2023-07-012023-09-300001413329us-gaap:CommodityContractMember2022-07-012022-09-300001413329us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2023-07-012023-09-300001413329us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2022-07-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-012022-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-012023-09-300001413329us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-012022-09-300001413329us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329us-gaap:InterestExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329us-gaap:NondesignatedMemberpm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329us-gaap:NondesignatedMemberpm:MarketingAdministrationAndResearchCostsMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300001413329us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001413329us-gaap:FairValueHedgingMember2023-09-300001413329us-gaap:NetInvestmentHedgingMemberpm:ForeignDebtMember2023-01-012023-09-300001413329us-gaap:NetInvestmentHedgingMemberpm:ForeignDebtMember2022-01-012022-09-300001413329us-gaap:NetInvestmentHedgingMemberpm:ForeignDebtMember2023-07-012023-09-300001413329us-gaap:NetInvestmentHedgingMemberpm:ForeignDebtMember2022-07-012022-09-300001413329us-gaap:OtherComprehensiveIncomeMember2022-12-310001413329us-gaap:OtherComprehensiveIncomeMember2021-12-310001413329us-gaap:OtherComprehensiveIncomeMember2023-06-300001413329us-gaap:OtherComprehensiveIncomeMember2022-06-300001413329us-gaap:OtherComprehensiveIncomeMember2023-01-012023-09-300001413329us-gaap:OtherComprehensiveIncomeMember2022-01-012022-09-300001413329us-gaap:OtherComprehensiveIncomeMember2023-07-012023-09-300001413329us-gaap:OtherComprehensiveIncomeMember2022-07-012022-09-300001413329us-gaap:OtherComprehensiveIncomeMember2023-09-300001413329us-gaap:OtherComprehensiveIncomeMember2022-09-300001413329us-gaap:ForeignExchangeContractMember2023-09-300001413329us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2023-09-300001413329pm:EuropeSegmentMember2022-01-012022-09-300001413329pm:EuropeSegmentMember2023-07-012023-09-300001413329pm:EuropeSegmentMember2022-07-012022-09-300001413329pm:SSEACISMEASegmentMember2022-01-012022-09-300001413329pm:SSEACISMEASegmentMember2023-07-012023-09-300001413329pm:SSEACISMEASegmentMember2022-07-012022-09-300001413329pm:EAAUPMIDFSegmentMember2022-01-012022-09-300001413329pm:EAAUPMIDFSegmentMember2023-07-012023-09-300001413329pm:EAAUPMIDFSegmentMember2022-07-012022-09-300001413329pm:AmericasSegmentMember2022-01-012022-09-300001413329pm:AmericasSegmentMember2023-07-012023-09-300001413329pm:AmericasSegmentMember2022-07-012022-09-300001413329pm:SwedishMatchABSegmentMember2022-01-012022-09-300001413329pm:SwedishMatchABSegmentMember2023-07-012023-09-300001413329pm:SwedishMatchABSegmentMember2022-07-012022-09-300001413329pm:WellnessAndHealthcareSegmentMember2022-01-012022-09-300001413329pm:WellnessAndHealthcareSegmentMember2023-07-012023-09-300001413329pm:WellnessAndHealthcareSegmentMember2022-07-012022-09-300001413329pm:EuropeSegmentMemberpm:CombustibleTobaccoProductsMember2023-01-012023-09-300001413329pm:EuropeSegmentMemberpm:CombustibleTobaccoProductsMember2022-01-012022-09-300001413329pm:EuropeSegmentMemberpm:CombustibleTobaccoProductsMember2023-07-012023-09-300001413329pm:EuropeSegmentMemberpm:CombustibleTobaccoProductsMember2022-07-012022-09-300001413329pm:SSEACISMEASegmentMemberpm:CombustibleTobaccoProductsMember2023-01-012023-09-300001413329pm:SSEACISMEASegmentMemberpm:CombustibleTobaccoProductsMember2022-01-012022-09-300001413329pm:SSEACISMEASegmentMemberpm:CombustibleTobaccoProductsMember2023-07-012023-09-300001413329pm:SSEACISMEASegmentMemberpm:CombustibleTobaccoProductsMember2022-07-012022-09-300001413329pm:EAAUPMIDFSegmentMemberpm:CombustibleTobaccoProductsMember2023-01-012023-09-300001413329pm:EAAUPMIDFSegmentMemberpm:CombustibleTobaccoProductsMember2022-01-012022-09-300001413329pm:EAAUPMIDFSegmentMemberpm:CombustibleTobaccoProductsMember2023-07-012023-09-300001413329pm:EAAUPMIDFSegmentMemberpm:CombustibleTobaccoProductsMember2022-07-012022-09-300001413329pm:AmericasSegmentMemberpm:CombustibleTobaccoProductsMember2023-01-012023-09-300001413329pm:AmericasSegmentMemberpm:CombustibleTobaccoProductsMember2022-01-012022-09-300001413329pm:AmericasSegmentMemberpm:CombustibleTobaccoProductsMember2023-07-012023-09-300001413329pm:AmericasSegmentMemberpm:CombustibleTobaccoProductsMember2022-07-012022-09-300001413329pm:SwedishMatchABSegmentMemberpm:CombustibleTobaccoProductsMember2023-01-012023-09-300001413329pm:SwedishMatchABSegmentMemberpm:CombustibleTobaccoProductsMember2022-01-012022-09-300001413329pm:SwedishMatchABSegmentMemberpm:CombustibleTobaccoProductsMember2023-07-012023-09-300001413329pm:SwedishMatchABSegmentMemberpm:CombustibleTobaccoProductsMember2022-07-012022-09-300001413329pm:CombustibleTobaccoProductsMember2023-01-012023-09-300001413329pm:CombustibleTobaccoProductsMember2022-01-012022-09-300001413329pm:CombustibleTobaccoProductsMember2023-07-012023-09-300001413329pm:CombustibleTobaccoProductsMember2022-07-012022-09-300001413329pm:SmokeFreeProductsMemberpm:EuropeSegmentMember2023-01-012023-09-300001413329pm:SmokeFreeProductsMemberpm:EuropeSegmentMember2022-01-012022-09-300001413329pm:SmokeFreeProductsMemberpm:EuropeSegmentMember2023-07-012023-09-300001413329pm:SmokeFreeProductsMemberpm:EuropeSegmentMember2022-07-012022-09-300001413329pm:SSEACISMEASegmentMemberpm:SmokeFreeProductsMember2023-01-012023-09-300001413329pm:SSEACISMEASegmentMemberpm:SmokeFreeProductsMember2022-01-012022-09-300001413329pm:SSEACISMEASegmentMemberpm:SmokeFreeProductsMember2023-07-012023-09-300001413329pm:SSEACISMEASegmentMemberpm:SmokeFreeProductsMember2022-07-012022-09-300001413329pm:SmokeFreeProductsMemberpm:EAAUPMIDFSegmentMember2023-01-012023-09-300001413329pm:SmokeFreeProductsMemberpm:EAAUPMIDFSegmentMember2022-01-012022-09-300001413329pm:SmokeFreeProductsMemberpm:EAAUPMIDFSegmentMember2023-07-012023-09-300001413329pm:SmokeFreeProductsMemberpm:EAAUPMIDFSegmentMember2022-07-012022-09-300001413329pm:AmericasSegmentMemberpm:SmokeFreeProductsMember2023-01-012023-09-300001413329pm:AmericasSegmentMemberpm:SmokeFreeProductsMember2022-01-012022-09-300001413329pm:AmericasSegmentMemberpm:SmokeFreeProductsMember2023-07-012023-09-300001413329pm:AmericasSegmentMemberpm:SmokeFreeProductsMember2022-07-012022-09-300001413329pm:SwedishMatchABSegmentMemberpm:SmokeFreeProductsMember2023-01-012023-09-300001413329pm:SwedishMatchABSegmentMemberpm:SmokeFreeProductsMember2022-01-012022-09-300001413329pm:SwedishMatchABSegmentMemberpm:SmokeFreeProductsMember2023-07-012023-09-300001413329pm:SwedishMatchABSegmentMemberpm:SmokeFreeProductsMember2022-07-012022-09-300001413329pm:SmokeFreeProductsMemberpm:SmokeFreeProductsExcludingWellnessAndHealthcareMember2023-01-012023-09-300001413329pm:SmokeFreeProductsMemberpm:SmokeFreeProductsExcludingWellnessAndHealthcareMember2022-01-012022-09-300001413329pm:SmokeFreeProductsMemberpm:SmokeFreeProductsExcludingWellnessAndHealthcareMember2023-07-012023-09-300001413329pm:SmokeFreeProductsMemberpm:SmokeFreeProductsExcludingWellnessAndHealthcareMember2022-07-012022-09-300001413329pm:SmokeFreeProductsMemberpm:WellnessAndHealthcareSegmentMember2023-01-012023-09-300001413329pm:SmokeFreeProductsMemberpm:WellnessAndHealthcareSegmentMember2022-01-012022-09-300001413329pm:SmokeFreeProductsMemberpm:WellnessAndHealthcareSegmentMember2023-07-012023-09-300001413329pm:SmokeFreeProductsMemberpm:WellnessAndHealthcareSegmentMember2022-07-012022-09-300001413329pm:SmokeFreeProductsMember2023-01-012023-09-300001413329pm:SmokeFreeProductsMember2022-01-012022-09-300001413329pm:SmokeFreeProductsMember2023-07-012023-09-300001413329pm:SmokeFreeProductsMember2022-07-012022-09-300001413329pm:SSEACISMEASegmentMemberpm:NetRevenuesMember2023-01-012023-03-310001413329pm:MarketingAdministrationAndResearchCostsMember2023-07-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberpm:EuropeSegmentMember2023-01-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberpm:EuropeSegmentMember2023-07-012023-09-300001413329pm:SSEACISMEASegmentMemberpm:MarketingAdministrationAndResearchCostsMember2023-01-012023-09-300001413329pm:SSEACISMEASegmentMemberpm:MarketingAdministrationAndResearchCostsMember2023-07-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberpm:EAAUPMIDFSegmentMember2023-01-012023-09-300001413329pm:MarketingAdministrationAndResearchCostsMemberpm:EAAUPMIDFSegmentMember2023-07-012023-09-300001413329pm:AmericasSegmentMemberpm:MarketingAdministrationAndResearchCostsMember2023-07-012023-09-300001413329pm:AmericasSegmentMemberpm:MarketingAdministrationAndResearchCostsMember2023-01-012023-09-300001413329pm:SmokingAndHealthClassActionsMemberpm:ConseilQuebecoisSurLeTabacEtLaSanteandJeanYvesBlaisMembercountry:CA2015-05-272015-05-27pm:manufacturer0001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:ConseilQuebecoisSurLeTabacEtLaSanteandJeanYvesBlaisMemberpm:ImperialTobaccoLtd.RothmansBensonAndHedgesInc.AndJTIMacdonaldCorp.Membercountry:CA2015-05-272015-05-27iso4217:CAD0001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:ConseilQuebecoisSurLeTabacEtLaSanteandJeanYvesBlaisMembercountry:CApm:RothmansBensonAndHedgesInc.RBHMember2015-05-272015-05-27pm:plaintiff0001413329pm:SmokingAndHealthClassActionsMembercountry:CApm:CeciliaLetourneauConseilQuebecoisSurLaTabacEtLaSanteandJeanYvesBlaisCasesMemberpm:RothmansBensonAndHedgesInc.RBHMemberpm:AppellateRulingMember2015-10-012015-10-300001413329pm:ImperialTobaccoLtd.Memberpm:SmokingAndHealthClassActionsMembercountry:CApm:CeciliaLetourneauConseilQuebecoisSurLaTabacEtLaSanteandJeanYvesBlaisCasesMemberpm:AppellateRulingMember2015-10-012015-10-300001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:ConseilQuebecoisSurLeTabacEtLaSanteandJeanYvesBlaisMemberpm:ImperialTobaccoLtd.RothmansBensonAndHedgesInc.AndJTIMacdonaldCorp.Membercountry:CA2019-03-012019-03-010001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:ConseilQuebecoisSurLeTabacEtLaSanteandJeanYvesBlaisMembercountry:CApm:RothmansBensonAndHedgesInc.RBHMember2019-03-012019-03-010001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:ImperialTobaccoLtd.RothmansBensonAndHedgesInc.AndJTIMacdonaldCorp.Membercountry:CApm:CeciliaLetourneauConseilQuebecoisSurLaTabacEtLaSanteandJeanYvesBlaisCasesMember2019-03-012019-03-010001413329pm:SmokingAndHealthClassActionsMembercountry:CApm:CeciliaLetourneauConseilQuebecoisSurLaTabacEtLaSanteandJeanYvesBlaisCasesMemberpm:RothmansBensonAndHedgesInc.RBHMemberpm:AppellateRulingMember2019-03-012019-03-010001413329pm:SmokingAndHealthClassActionsMembercountry:CApm:CeciliaLetourneauConseilQuebecoisSurLaTabacEtLaSanteandJeanYvesBlaisCasesMemberpm:RothmansBensonAndHedgesInc.RBHMemberpm:AppellateRulingMember2019-01-012019-03-310001413329pm:SmokingAndHealthClassActionsMemberpm:CeciliaLetourneauMembercountry:CA2015-05-272015-05-270001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:ImperialTobaccoLtd.RothmansBensonAndHedgesInc.AndJTIMacdonaldCorp.Memberpm:CeciliaLetourneauMembercountry:CA2015-05-272015-05-270001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:CeciliaLetourneauMembercountry:CApm:RothmansBensonAndHedgesInc.RBHMember2015-05-272015-05-270001413329us-gaap:JudicialRulingMemberpm:SmokingAndHealthClassActionsMemberpm:CeciliaLetourneauMembercountry:CApm:RothmansBensonAndHedgesInc.RBHMember2019-03-012019-03-010001413329pm:AdamsMembercountry:CAus-gaap:PendingLitigationMember2009-07-102009-07-10pm:cigarette0001413329pm:SuzanneJacklinMembercountry:CAus-gaap:PendingLitigationMember2012-06-202012-06-200001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMember2023-09-30pm:litigationCase0001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMember2022-09-300001413329pm:SmokingAndHealthClassActionsMemberpm:CombustibleProductsMember2023-09-300001413329pm:SmokingAndHealthClassActionsMemberpm:CombustibleProductsMember2022-09-300001413329pm:CombustibleProductsMemberpm:HealthCareCostRecoveryActionsMember2023-09-300001413329pm:CombustibleProductsMemberpm:HealthCareCostRecoveryActionsMember2022-09-300001413329pm:CombustibleProductsMemberpm:LabelRelatedClassActionMember2023-09-300001413329pm:CombustibleProductsMemberpm:LabelRelatedClassActionMember2022-09-300001413329pm:CombustibleProductsMemberpm:IndividualLabelRelatedCasesMember2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualLabelRelatedCasesMember2022-09-300001413329pm:CombustibleProductsMemberpm:PublicCivilActionsMember2023-09-300001413329pm:CombustibleProductsMemberpm:PublicCivilActionsMember2022-09-300001413329pm:CaseDecidedInFavorOfPlaintiffMember2023-09-300001413329pm:CasesOnAppealSubjectToAnAppealOrWithThePossibilityToBeAppealedByASubsidiaryOfTheCompanyMember2023-09-300001413329us-gaap:JudicialRulingMembercountry:ARpm:SmokingAndHealthIndividualActionsMemberpm:HugoLespadaMember2016-08-052016-08-05iso4217:ARS0001413329us-gaap:JudicialRulingMemberpm:ClaudiaMilanoMembercountry:ARpm:SmokingAndHealthIndividualActionsMember2021-06-172021-06-170001413329us-gaap:JudicialRulingMemberpm:ClaudiaMilanoMembercountry:ARpm:SmokingAndHealthIndividualActionsMember2021-07-022021-07-020001413329us-gaap:JudicialRulingMemberpm:ClaudiaMilanoMembercountry:ARpm:SmokingAndHealthIndividualActionsMember2021-12-162021-12-160001413329us-gaap:JudicialRulingMembercountry:TRpm:SmokingAndHealthIndividualActionsMemberpm:SenemYilmazelMember2023-06-232023-06-23iso4217:TRY0001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMembercountry:AR2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMembercountry:AU2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMembercountry:CA2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMembercountry:CL2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMembercountry:PH2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMembercountry:TR2023-09-300001413329pm:ScotlandMemberpm:CombustibleProductsMemberpm:IndividualSmokingAndHealthCasesMember2023-09-300001413329country:BRpm:CombustibleProductsMemberpm:HealthCareCostRecoveryActionsMember2023-09-300001413329pm:CombustibleProductsMembercountry:CApm:HealthCareCostRecoveryActionsMember2023-09-300001413329pm:CombustibleProductsMemberpm:HealthCareCostRecoveryActionsMembercountry:KR2023-09-300001413329pm:CombustibleProductsMemberpm:HealthCareCostRecoveryActionsMembercountry:NG2023-09-300001413329pm:TheAttorneyGeneralOfLagosStateMemberpm:HealthCareCostRecoveryActionsMembercountry:NGus-gaap:PendingLitigationMember2008-03-132008-03-130001413329pm:HealthCareCostRecoveryActionsMembercountry:NGpm:TheAttorneyGeneralOfKanoStateMemberus-gaap:PendingLitigationMember2007-05-092007-05-090001413329pm:TheAttorneyGeneralOfGombeStateMemberpm:HealthCareCostRecoveryActionsMembercountry:NGus-gaap:PendingLitigationMember2008-10-172008-10-170001413329pm:TheAttorneyGeneralOfOyoStateMemberpm:HealthCareCostRecoveryActionsMembercountry:NGus-gaap:PendingLitigationMember2007-05-252007-05-250001413329pm:TheAttorneyGeneralOfOgunStateMemberpm:HealthCareCostRecoveryActionsMembercountry:NGus-gaap:PendingLitigationMember2008-02-262008-02-260001413329pm:HealthCareCostRecoveryActionsMembercountry:KR2014-04-142014-04-14pm:patient0001413329country:ITpm:CombustibleProductsMemberpm:IndividualLabelRelatedCasesMember2023-09-300001413329pm:CombustibleProductsMemberpm:IndividualLabelRelatedCasesMembercountry:CL2023-09-300001413329country:VEpm:CombustibleProductsMemberpm:PublicCivilActionsMember2023-09-300001413329pm:TheDepartmentofSpecialInvestigationsoftheGovernmentofThailandMembercountry:THpm:OtherLitigationMemberus-gaap:PendingLitigationMember2016-01-182016-01-18pm:defendant0001413329pm:TheDepartmentofSpecialInvestigationsoftheGovernmentofThailandMembercountry:THpm:OtherLitigationMember2016-01-182016-01-18iso4217:THB0001413329pm:TheDepartmentofSpecialInvestigationsoftheGovernmentofThailandMembercountry:THpm:OtherLitigationMember2019-11-012019-11-300001413329pm:TheDepartmentofSpecialInvestigationsoftheGovernmentofThailandMembercountry:THpm:OtherLitigationMember2022-06-012022-06-010001413329pm:TheDepartmentofSpecialInvestigationsoftheGovernmentofThailandMembercountry:THpm:OtherLitigationMember2017-01-262017-01-260001413329pm:TheDepartmentofSpecialInvestigationsoftheGovernmentofThailandMembercountry:THpm:OtherLitigationMember2020-03-012020-03-310001413329pm:TheSouthKoreanBoardOfAuditAndInspectionMemberpm:OtherLitigationMembercountry:KR2016-11-012017-03-31iso4217:KRW0001413329pm:TheSouthKoreanBoardOfAuditAndInspectionMemberpm:OtherLitigationMembercountry:KR2016-01-012016-12-310001413329pm:TheSouthKoreanBoardOfAuditAndInspectionMemberpm:OtherLitigationMembercountry:KR2017-01-012017-03-310001413329pm:TheSouthKoreanBoardOfAuditAndInspectionMemberpm:OtherLitigationMembercountry:KR2020-01-012020-01-310001413329pm:TheSouthKoreanBoardOfAuditAndInspectionMemberpm:OtherLitigationMembercountry:KR2020-06-012020-06-300001413329pm:EAAUPMIDFSegmentMembercountry:KR2023-04-012023-06-300001413329pm:OtherLitigationMember2022-06-152022-06-150001413329pm:CanadianGovernmentMember2020-10-170001413329pm:CanadianGovernmentMember2022-03-310001413329pm:MedicagoIncMemberus-gaap:FinancialGuaranteeMember2022-08-310001413329country:RU2023-01-012023-09-300001413329country:RU2023-07-012023-09-300001413329pm:SwedishMatchABMember2023-07-012023-09-300001413329srt:ScenarioForecastMembersrt:MinimumMember2023-01-012023-12-310001413329srt:MaximumMembersrt:ScenarioForecastMember2023-01-012023-12-310001413329srt:MinimumMember2023-01-012023-09-300001413329srt:MaximumMember2023-01-012023-09-3000014133292021-10-012021-10-31iso4217:IDR0001413329us-gaap:CommercialPaperMember2023-09-300001413329us-gaap:CommercialPaperMember2022-12-310001413329us-gaap:BankLoanObligationsMember2023-09-300001413329us-gaap:BankLoanObligationsMember2022-12-310001413329pm:UsDollarNotesMember2023-09-300001413329pm:UsDollarNotesMember2022-12-310001413329pm:UsDollarNotesMembersrt:MinimumMember2023-09-300001413329pm:UsDollarNotesMembersrt:MaximumMember2023-09-300001413329pm:UsDollarNotesMember2023-01-012023-09-300001413329pm:UsDollarNotesMember2023-09-300001413329pm:UsDollarNotesMember2022-12-310001413329pm:EuroNotesPayableMemberpm:ForeignCurrencyObligationsMembersrt:MinimumMember2023-09-300001413329srt:MaximumMemberpm:EuroNotesPayableMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329pm:EuroNotesPayableMemberpm:ForeignCurrencyObligationsMember2023-01-012023-09-300001413329pm:EuroNotesPayableMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329pm:EuroNotesPayableMemberpm:ForeignCurrencyObligationsMember2022-12-310001413329pm:SwissFrancNotesMemberpm:ForeignCurrencyObligationsMember2023-01-012023-09-300001413329pm:SwissFrancNotesMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329pm:SwissFrancNotesMemberpm:ForeignCurrencyObligationsMember2022-12-310001413329pm:EuroBankLoanMemberpm:ForeignCurrencyObligationsMember2023-01-012023-09-300001413329pm:EuroBankLoanMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329pm:EuroBankLoanMemberpm:ForeignCurrencyObligationsMember2022-12-310001413329pm:SwedishKronaNotesMemberpm:ForeignCurrencyObligationsMembersrt:MinimumMember2023-09-300001413329srt:MaximumMemberpm:SwedishKronaNotesMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329pm:SwedishKronaNotesMemberpm:ForeignCurrencyObligationsMember2023-01-012023-09-300001413329pm:SwedishKronaNotesMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329pm:SwedishKronaNotesMemberpm:ForeignCurrencyObligationsMember2022-12-310001413329us-gaap:NotesPayableOtherPayablesMemberpm:ForeignCurrencyObligationsMember2023-01-012023-09-300001413329us-gaap:NotesPayableOtherPayablesMemberpm:ForeignCurrencyObligationsMember2023-09-300001413329us-gaap:NotesPayableOtherPayablesMemberpm:ForeignCurrencyObligationsMember2022-12-310001413329us-gaap:FairValueInputsLevel1Member2023-09-300001413329us-gaap:FairValueInputsLevel2Member2023-09-300001413329pm:SeniorUnsecuredBridgeFacilityMember2022-05-112022-05-110001413329pm:SeniorUnsecuredBridgeFacilityMember2022-05-110001413329pm:SeniorUnsecuredTermLoanMember2022-06-23iso4217:EUR0001413329pm:SeniorUnsecuredTermLoanMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-06-230001413329pm:SeniorUnsecuredTermLoanMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-06-232022-06-230001413329pm:SeniorUnsecuredTermLoanMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2022-06-230001413329pm:SeniorUnsecuredBridgeFacilityMember2022-06-230001413329pm:SeniorUnsecuredBridgeFacilityMemberpm:SwedishMatchABMember2022-11-072022-11-100001413329pm:SeniorUnsecuredBridgeFacilityMemberpm:SwedishMatchABMember2022-11-072022-11-070001413329pm:SeniorUnsecuredBridgeFacilityMemberpm:SwedishMatchABMember2022-11-102022-11-100001413329pm:SeniorUnsecuredTermLoanMemberpm:SwedishMatchABMember2022-11-072022-11-070001413329pm:SeniorUnsecuredTermLoanMemberus-gaap:DebtInstrumentRedemptionPeriodOneMemberpm:SwedishMatchABMember2022-11-072022-11-070001413329pm:SeniorUnsecuredTermLoanMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMemberpm:SwedishMatchABMember2022-11-072022-11-070001413329pm:SeniorUnsecuredBridgeFacilityMemberpm:SwedishMatchABMember2022-11-212022-11-210001413329pm:SeniorUnsecuredBridgeFacilityMemberpm:SwedishMatchABMember2023-02-172023-02-170001413329pm:SeniorUnsecuredTermLoanMemberpm:SwedishMatchABMember2022-12-310001413329pm:SeniorUnsecuredTermLoanMemberpm:SwedishMatchABMember2023-09-300001413329pm:USDollarNotes4875DueFebruary2026Member2023-02-280001413329pm:USDollarNotes4875DueFebruary2028Member2023-02-280001413329pm:USDollarNotes5125DueFebruary2030Member2023-02-280001413329pm:USDollarNotes5375DueFebruary2033Member2023-02-280001413329pm:USDollarNotes4875DueFebruary2026Member2023-05-300001413329pm:USDollarNotes4875DueFebruary2028Member2023-05-300001413329pm:USDollarNotes5125DueFebruary2030Member2023-05-300001413329pm:USDollarNotes5375DueFebruary2033Member2023-05-300001413329pm:USDollarNotes5250DueSeptember2028Member2023-09-300001413329pm:USDollarNotes5500DueSeptember2030Member2023-09-300001413329pm:USDollarNotes5625DueSeptember2033Member2023-09-300001413329pm:SeniorUnsecuredBridgeFacilityMember2023-02-172023-02-170001413329pm:ThreeHundredSixtyFourDayRevolvingCreditExpiringJanuary302024Member2023-09-300001413329pm:MultiYearRevolvingCreditFacilityExpiringFebruary102026Member2023-09-300001413329pm:MultiYearRevolvingCreditFacilityExpiringSeptember292026Member2023-09-300001413329pm:MultiYearRevolvingCreditFacilityExpiringFebruary102027Member2022-01-280001413329pm:MultiYearRevolvingCreditFacilityExpiringSeptember292027Member2023-09-200001413329pm:ShortTermCreditArrangementMember2023-09-300001413329pm:ShortTermCreditArrangementMember2022-12-310001413329us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300001413329us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001413329us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300001413329us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300001413329us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001413329us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300001413329us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-09-300001413329us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310001413329us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300001413329pm:DefiniteLivedIntangiblesAndOtherAssetsMember2023-09-300001413329pm:DefiniteLivedIntangiblesAndOtherAssetsMember2022-12-3100014133292022-01-012022-12-310001413329pm:MegapolisMember2023-09-300001413329pm:EITAMember2023-09-300001413329pm:STAEMMember2023-09-300001413329pm:STAEMMemberpm:EITAMember2023-09-300001413329pm:ManagementEtDeveloppementDesActifsEtDesRessourcesHoldingMADARHoldingMemberpm:STAEMMember2023-09-300001413329pm:EIHMember2023-04-300001413329pm:UTCMember2023-04-300001413329pm:UTCMemberpm:EIHMember2023-04-300001413329pm:RothmansBensonAndHedgesInc.RBHMember2019-03-220001413329pm:TTIMemberpm:PMMMember2023-09-300001413329pm:IPMIndiaMember2023-09-300001413329us-gaap:RelatedPartyMemberpm:MegapolisMember2023-01-012023-09-300001413329us-gaap:RelatedPartyMemberpm:MegapolisMember2022-01-012022-09-300001413329us-gaap:RelatedPartyMemberpm:MegapolisMember2023-07-012023-09-300001413329us-gaap:RelatedPartyMemberpm:MegapolisMember2022-07-012022-09-300001413329us-gaap:RelatedPartyMemberpm:OtherRelatedPartyMember2023-01-012023-09-300001413329us-gaap:RelatedPartyMemberpm:OtherRelatedPartyMember2022-01-012022-09-300001413329us-gaap:RelatedPartyMemberpm:OtherRelatedPartyMember2023-07-012023-09-300001413329us-gaap:RelatedPartyMemberpm:OtherRelatedPartyMember2022-07-012022-09-300001413329pm:OtherRelatedPartyMember2023-01-012023-09-300001413329pm:OtherRelatedPartyMember2022-01-012022-09-300001413329pm:OtherRelatedPartyMember2023-07-012023-09-300001413329pm:OtherRelatedPartyMember2022-07-012022-09-300001413329us-gaap:RelatedPartyMemberpm:MegapolisMember2023-09-300001413329us-gaap:RelatedPartyMemberpm:MegapolisMember2022-12-310001413329us-gaap:RelatedPartyMemberpm:OtherRelatedPartyMember2023-09-300001413329us-gaap:RelatedPartyMemberpm:OtherRelatedPartyMember2022-12-31pm:arrangement0001413329pm:EVaporProductsManufacturingOptimizationMember2023-01-012023-03-310001413329pm:EVaporProductsManufacturingOptimizationMemberus-gaap:ContractTerminationMember2023-01-012023-03-310001413329pm:EVaporProductsManufacturingOptimizationMemberpm:FinanceLeaseTerminationMember2023-01-012023-03-310001413329pm:AssetImpairmentMemberpm:EVaporProductsManufacturingOptimizationMember2023-01-012023-03-310001413329us-gaap:ContractTerminationMemberpm:EuropeSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001413329us-gaap:ContractTerminationMemberus-gaap:OperatingSegmentsMemberpm:SSEACISMEASegmentMember2023-01-012023-09-300001413329pm:EAAUPMIDFSegmentMemberus-gaap:ContractTerminationMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001413329us-gaap:ContractTerminationMemberus-gaap:OperatingSegmentsMemberpm:AmericasSegmentMember2023-01-012023-09-300001413329us-gaap:ContractTerminationMember2023-01-012023-09-300001413329pm:AssetImpairmentMemberpm:EuropeSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001413329pm:AssetImpairmentMemberus-gaap:OperatingSegmentsMemberpm:SSEACISMEASegmentMember2023-01-012023-09-300001413329pm:AssetImpairmentMemberpm:EAAUPMIDFSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001413329pm:AssetImpairmentMemberus-gaap:OperatingSegmentsMemberpm:AmericasSegmentMember2023-01-012023-09-300001413329pm:AssetImpairmentMember2023-01-012023-09-300001413329srt:ScenarioForecastMember2023-10-012023-12-310001413329pm:SuppliersUsingSupplyChainFinancingProgramMember2023-09-300001413329pm:SuppliersUsingSupplyChainFinancingProgramMember2022-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One) 
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR 
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 001-33708
Philip Morris International Inc.
(Exact name of registrant as specified in its charter)
Virginia13-3435103
(State or other jurisdiction of
    incorporation or organization)		(I.R.S. Employer
    Identification No.)
677 Washington Blvd, Suite 1100StamfordConnecticut06901
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code(203)905-2410
Former name, former address and former fiscal year, if changed since last report

Securities registered pursuant to Section 12(b) of the Act:
Title of each class                    Trading Symbol(s)Name of each exchange on which registered
Common Stock, no par valuePMNew York Stock Exchange
3.600% Notes due 2023PM23ANew York Stock Exchange
2.875% Notes due 2024PM24New York Stock Exchange
2.875% Notes due 2024PM24CNew York Stock Exchange
0.625% Notes due 2024PM24BNew York Stock Exchange
3.250% Notes due 2024PM24ANew York Stock Exchange
2.750% Notes due 2025PM25New York Stock Exchange
3.375% Notes due 2025PM25ANew York Stock Exchange
2.750% Notes due 2026PM26ANew York Stock Exchange
2.875% Notes due 2026PM26New York Stock Exchange
0.125% Notes due 2026PM26BNew York Stock Exchange
3.125% Notes due 2027PM27New York Stock Exchange
3.125% Notes due 2028PM28New York Stock Exchange
2.875% Notes due 2029PM29New York Stock Exchange
3.375% Notes due 2029PM29ANew York Stock Exchange
Title of each class                    Trading Symbol(s)Name of each exchange on which registered
0.800% Notes due 2031PM31New York Stock Exchange
3.125% Notes due 2033PM33New York Stock Exchange
2.000% Notes due 2036PM36New York Stock Exchange
1.875% Notes due 2037PM37ANew York Stock Exchange
6.375% Notes due 2038PM38New York Stock Exchange
1.450% Notes due 2039PM39New York Stock Exchange
4.375% Notes due 2041PM41New York Stock Exchange
4.500% Notes due 2042PM42New York Stock Exchange
3.875% Notes due 2042PM42ANew York Stock Exchange
4.125% Notes due 2043PM43New York Stock Exchange
4.875% Notes due 2043PM43ANew York Stock Exchange
4.250% Notes due 2044PM44New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ        No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  þ        No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer    þ                        Accelerated filer            ☐  
Non-accelerated filer    ☐                         Smaller reporting company    ☐
                                    Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  þ
At October 20, 2023, there were 1,552,405,991 shares outstanding of the registrant’s common stock, no par value per share.
1
PHILIP MORRIS INTERNATIONAL INC.
TABLE OF CONTENTS
 
  Page No.
PART I -
Item 1.
Condensed Consolidated Statements of Earnings for the
Nine Months Ended September 30, 2023 and 2022
Three Months Ended September 30, 2023 and 2022
Condensed Consolidated Statements of Comprehensive Earnings for the
Nine Months Ended September 30, 2023 and 2022
Three Months Ended September 30, 2023 and 2022
Condensed Consolidated Balance Sheets at
September 30, 2023 and December 31, 2022
7 – 8
Condensed Consolidated Statements of Cash Flows for the
Nine Months Ended September 30, 2023 and 2022
9 – 10
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity for the
Nine Months Ended September 30, 2023 and 2022
Three Months Ended September 30, 2023 and 2022
13 – 56
Item 2.
57 – 117
Item 4.
PART II -
Item 1.
Item 1A.
Item 2.
Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
Item 5.
Item 6.

In this report, “PMI,” “we,” “us” and “our” refer to Philip Morris International Inc. and its subsidiaries.

Trademarks and service marks in this report are the registered property of, or licensed by, the subsidiaries of Philip Morris International Inc. and are italicized.
2
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
(Unaudited)
 For the Nine Months Ended September 30,
 20232022
Net revenues 1 & 2 (Note 14)
26,127 23,610 
Cost of sales 3 (Notes 3 & 6)
9,431 8,191 
Gross profit16,696 15,419 
Marketing, administration and research costs 4 (Notes 3, 6, 9, 10 & 17)
8,029 6,097 
Operating income8,667 9,322 
Interest expense, net788 418 
Pension and other employee benefit costs (Note 5)36 16 
Earnings before income taxes7,843 8,888 
Provision for income taxes2,019 1,835 
Equity investments and securities (income)/loss, net(131)20 
Net earnings$5,955 $7,033 
Net earnings attributable to noncontrolling interests338 382 
Net earnings attributable to PMI$5,617 $6,651 

Per share data (Note 8):
Basic earnings per share$3.61 $4.28 
Diluted earnings per share$3.61 $4.27 
(1) Includes net revenues from related parties of $2,631 million and $2,634 million for the nine months ended September 30, 2023 and 2022, respectively
(2) Net of excise tax on products of $37,140 million and $37,028 million for the nine months ended September 30, 2023 and 2022, respectively
(3) Includes an impairment charge for other intangibles of $112 million for the nine months ended September 30, 2022. For further details, see Note 6. Goodwill and Other Intangible Assets, net
(4) Includes an impairment charge for goodwill and other intangibles of $680 million and a charge of $204 million for the South Korea indirect tax charge for the nine months ended September 30, 2023, respectively. For further details, see Note 6. Goodwill and Other Intangible Assets, net and Note 10. Contingencies







See notes to condensed consolidated financial statements.

3



Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
(Unaudited)
 For the Three Months Ended September 30,
 20232022
Net revenues 1 & 2 (Note 14)
9,141 8,032 
Cost of sales 3 (Notes 3 & 6)
3,165 2,935 
Gross profit5,976 5,097 
Marketing, administration and research costs (Notes 3 & 9)
2,606 2,129 
Operating income3,370 2,968 
Interest expense, net261 138 
Pension and other employee benefit costs (Note 5)8 7 
Earnings before income taxes3,101 2,823 
Provision for income taxes1,031 622 
Equity investments and securities (income)/loss, net(101)(21)
Net earnings2,171 2,222 
Net earnings attributable to noncontrolling interests117 135 
Net earnings attributable to PMI$2,054 $2,087 

Per share data (Note 8):
Basic earnings per share$1.32 $1.34 
Diluted earnings per share$1.32 $1.34 
(1) Includes net revenues from related parties of $857 million and $1,087 million for the three months ended September 30, 2023 and 2022, respectively
(2) Net of excise taxes of $13,092 million and $12,856 million for the three months ended September 30, 2023 and 2022, respectively
(3) Includes an impairment charge for other intangibles of $112 million for the three months ended September 30, 2022. For further details, see Note 6. Goodwill and Other Intangible Assets, net



See notes to condensed consolidated financial statements.
4
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings
(in millions of dollars)
(Unaudited)

For the Nine Months Ended September 30,
20232022
Net earnings$5,955 $7,033 
Other comprehensive earnings (losses), net of income taxes:
Change in currency translation adjustments:
Unrealized gains (losses), net of income taxes of $(12) in 2023 and $(340) in 2022
(669)(352)
(Gains)/losses transferred to earnings, net of income taxes of $0 in 2023 and 2022
4 — 

Change in net loss and prior service cost:
Net gains (losses) and prior service costs, net of income taxes of $0 in 2023 and $29 in 2022
— 63 
Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(20) in 2023 and $(37) in 2022
59 164 

Change in fair value of derivatives accounted for as hedges:
Gains (losses) recognized, net of income taxes of $(56) in 2023 and $(106) in 2022
304 523 
(Gains) losses transferred to earnings, net of income taxes of $30 in 2023 and $18 in 2022
(155)(106)
Total other comprehensive earnings (losses)(457)292 
Total comprehensive earnings5,498 7,325 
Less comprehensive earnings (losses) attributable to:
Noncontrolling interests139 385 
Comprehensive earnings attributable to PMI$5,359 $6,940 


















See notes to condensed consolidated financial statements.
5
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings
(in millions of dollars)
(Unaudited)
For the Three Months Ended September 30,
20232022
Net earnings$2,171 $2,222 
Other comprehensive earnings (losses), net of income taxes:
Change in currency translation adjustments:
Unrealized gains (losses), net of income taxes of $(95) in 2023 and $(158) in 2022
158 (571)
(Gains)/losses transferred to earnings, net of income taxes of $0 in 2023 and 2022
2 — 

Change in net loss and prior service cost:
Net gains (losses) and prior service costs, net of income taxes of $0 in 2023 and $(7) in 2022
— 27 
Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(6) in 2023 and $(15) in 2022
18 54 

Change in fair value of derivatives accounted for as hedges:
Gains (losses) recognized, net of income taxes of $(8) in 2023 and $(52) in 2022
58 222 
(Gains) losses transferred to earnings, net of income taxes of $8 in 2023 and $9 in 2022
(51)(51)
Total other comprehensive earnings (losses)185 (319)
Total comprehensive earnings
2,356 1,903 
Less comprehensive earnings (losses) attributable to:
Noncontrolling interests74 61 
Comprehensive earnings attributable to PMI$2,282 $1,842 
















See notes to condensed consolidated financial statements.
6
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)
 
September 30,
2023		December 31,
2022
ASSETS
Cash and cash equivalents$3,017 $3,207 
Trade receivables (less allowances of $80 in 2023 and $42 in 2022) (1)
3,891 3,850 
Other receivables (less allowances of $33 in 2023 and $32 in 2022)
898 906 

Inventories:
Leaf tobacco1,972 1,674 
Other raw materials2,198 2,028 
Finished product5,475 6,184 
9,645 9,886 
Other current assets1,742 1,770 

Total current assets		19,193 19,619 

Property, plant and equipment, at cost		15,893 15,443 
Less: accumulated depreciation9,010 8,733 
6,883 6,710 
Goodwill (Note 6)16,509 19,655 
Other intangible assets, net (Note 6)9,579 6,732 
Equity investments (Note 14)4,691 4,431 
Deferred income taxes577 603 
Other assets (less allowances of $24 in 2023 and $20 in 2022) (Note 2)
5,495 3,931 
TOTAL ASSETS$62,927 $61,681 

(1) Includes trade receivables from related parties of $655 million and $688 million as of September 30, 2023, and December 31, 2022, respectively (less allowances of $43 million as of September 30, 2023 and $7 million as of December 31, 2022). For further details, see Note 14. Related Parties - Equity Investments and Other.






See notes to condensed consolidated financial statements.
Continued
7
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share data)
(Unaudited)
 
September 30,
2023		December 31,
2022
LIABILITIES
Short-term borrowings (Note 12)$2,149 $5,637 
Current portion of long-term debt (Note 12)2,652 2,611 
Accounts payable3,533 4,076 
Accrued liabilities:
Marketing and selling857 695 
Taxes, except income taxes5,853 7,440 
Employment costs1,131 1,168 
Dividends payable2,040 1,990 
Other2,250 2,679 
Income taxes1,082 1,040 
Total current liabilities21,547 27,336 

Long-term debt (Note 12)		42,914 34,875 
Deferred income taxes2,903 1,956 
Employment costs1,915 1,984 
Income taxes and other liabilities1,354 1,841 
Total liabilities70,633 67,992 

Contingencies (Note 10)

STOCKHOLDERS’ (DEFICIT) EQUITY

Common stock, no par value
   (2,109,316,331 shares issued in 2023 and 2022)
— — 
Additional paid-in capital2,253 2,230 
Earnings reinvested in the business33,919 34,289 
Accumulated other comprehensive losses (Note 13)(9,817)(9,559)
26,355 26,960 
Less: cost of repurchased stock
   (556,942,754 and 559,098,620 shares in 2023 and 2022, respectively)
35,788 35,917 
Total PMI stockholders’ deficit(9,433)(8,957)
Noncontrolling interests1,727 2,646 
Total stockholders’ deficit(7,706)(6,311)
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY$62,927 $61,681 





See notes to condensed consolidated financial statements.
8
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of dollars)
(Unaudited)
 
 For the Nine Months Ended September 30,
 20232022
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net earnings$5,955 $7,033 
Adjustments to reconcile net earnings to operating cash flows:
Depreciation, amortization and impairment of goodwill and other intangibles1,709 898 
Deferred income tax (benefit) provision34 (146)
Asset impairment and exit costs, net of cash paid (Note 17)35 (79)
Cash effects of changes, net of the effects from acquired companies:
Receivables, net (1)
(267)(963)
Inventories(181)793 
Accounts payable(623)275 
Accrued liabilities and other current assets(922)(326)
Income taxes(201)(190)
Pension plan contributions, net of refunds (Note 5)(96)38 
Other459 377 
Net cash provided by operating activities5,902 7,710 
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
Capital expenditures(1,010)(730)
Altria Group, Inc. agreement (Note 2)(1,775)— 
Equity investments(111)(20)
Net investment hedges and other derivatives (Note 7)(110)634 
Other(24)(35)
Net cash used in investing activities(3,030)(151)
 
(1) Includes amounts from related parties of $(130) million and $(226) million for September 30, 2023 and 2022, respectively













See notes to condensed consolidated financial statements.

Continued
9
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(in millions of dollars)
(Unaudited)
 
 For the Nine Months Ended September 30,
 20232022
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
Short-term borrowing activity by original maturity:
    Net issuances (repayments) - maturities of 90 days or less$356 $2,619 
    Issuances - maturities longer than 90 days1,109 795 
    Repayments - maturities longer than 90 days(554)(795)
Repayments under credit facilities related to Swedish Match AB acquisition(4,430)— 
Long-term debt proceeds9,959 — 
Long-term debt repaid(2,034)(1,979)
Repurchases of common stock— (209)
Dividends paid(5,941)(5,839)
Payments to acquire Swedish Match AB noncontrolling interests (Note 2)(883)— 
Noncontrolling interests activity and Other (Note 2)
(267)(663)
Net cash used in financing activities(2,685)(6,071)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(370)(614)
Cash, cash equivalents and restricted cash (1):
Increase (Decrease)(183)874 
Balance at beginning of period3,217 4,500 
Balance at end of period$3,034 $5,374 

(1) The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $17 million and $6 million as of September 30, 2023 and 2022, respectively, and $10 million and $4 million as of December 31, 2022 and 2021, respectively, which were included in other current assets in the condensed consolidated balance sheets.







See notes to condensed consolidated financial statements.
10
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Nine Months Ended September 30, 2023 and 2022
(in millions of dollars, except per share amounts)
(Unaudited)
 PMI Stockholders’ (Deficit) Equity  
 Common
Stock		Additional
Paid-in
Capital		Earnings
Reinvested in
the
Business		Accumulated
Other
Comprehensive Losses		Cost of
Repurchased
Stock		Noncontrolling
Interests		Total
Balances, January 1, 2022$— $2,225 $33,082 $(9,577)$(35,836)$1,898 $(8,208)
Net earnings6,651 382 7,033 
Other comprehensive earnings (losses), net of income taxes460 (168)292 
Issuance of stock awards 9 117 126 
Dividends declared ($3.77 per share)
(5,868)(5,868)
Dividends paid to noncontrolling interests(368)(368)
Common stock repurchased(199)(199)
Purchase of subsidiary shares from noncontrolling interests (Note 2)(30)(171)(10)(211)
Balances, September 30, 2022$— $2,204 $33,865 $(9,288)$(35,918)$1,734 $(7,403)
Balances, January 1, 2023$— $2,230 $34,289 $(9,559)$(35,917)$2,646 $(6,311)
Net earnings5,617 338 5,955 
Other comprehensive earnings (losses), net of income taxes(438)(19)(457)
Issuance of stock awards 29 129 158 
Dividends declared ($3.84 per share)
(5,987)(5,987)
Dividends paid to noncontrolling interests(407)(407)
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 2)(6)180 (831)(657)
Balances, September 30, 2023$— $2,253 $33,919 $(9,817)$(35,788)$1,727 $(7,706)




See notes to condensed consolidated financial statements.
11
Philip Morris International Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Three Months Ended September 30, 2023 and 2022
(in millions of dollars, except per share amounts)
(Unaudited)
 PMI Stockholders’ (Deficit) Equity  
 Common
Stock		Additional
Paid-in
Capital		Earnings
Reinvested in
the
Business		Accumulated
Other
Comprehensive Losses		Cost of
Repurchased
Stock		Noncontrolling
Interests		Total
Balances, July 1, 2022$— $2,165 $33,755 $(9,043)$(35,921)$1,784 $(7,260)
Net earnings  2,087   135 2,222 
Other comprehensive earnings (losses), net of income taxes   (245) (74)(319)
Issuance of stock awards 39   3  42 
Dividends declared ($1.27 per share)
  (1,977)   (1,977)
Dividends paid to noncontrolling interests     (111)(111)
Balances, September 30, 2022$— $2,204 $33,865 $(9,288)$(35,918)$1,734 $(7,403)
Balances, July 1, 2023$— $2,240 $33,893 $(10,045)$(35,791)$1,743 $(7,960)
Net earnings  2,054   117 2,171 
Other comprehensive earnings (losses), net of income taxes   227  (42)185 
Issuance of stock awards 40   3  43 
Dividends declared ($1.30 per share)
  (2,028)   (2,028)
Dividends paid to noncontrolling interests     (89)(89)
Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (27) 1  (2)(28)
Balances, September 30, 2023$— $2,253 $33,919 $(9,817)$(35,788)$1,727 $(7,706)


See notes to condensed consolidated financial statements.
12
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
 
Note 1. Background and Basis of Presentation:

Background

Philip Morris International Inc. is a holding company incorporated in Virginia, U.S.A. (also referred to herein as the U.S., the United States or the United States of America), whose subsidiaries and affiliates and their licensees are primarily engaged in the manufacture and sale of cigarettes and smoke-free products. Throughout these financial statements, the term "PMI" refers to Philip Morris International Inc. and its subsidiaries.

Smoke-free products (also referred to herein as "SFPs") is the term PMI primarily uses to refer to all of its products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine. In addition, SFPs include wellness and healthcare products, as well as consumer accessories such as lighters and matches.

Reduced-risk products ("RRPs") is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI's RRPs are smoke-free products that contain and/or generate far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke.

"Platform 1" is the term PMI uses to refer to PMI’s reduced-risk product that uses a precisely controlled heating device into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol.

Basis of Presentation

The interim condensed consolidated financial statements of PMI are unaudited. These interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and such principles are applied on a consistent basis. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S.GAAP have been omitted. It is the opinion of PMI’s management that all adjustments necessary for a fair statement of the interim results presented have been reflected therein. All such adjustments were of a normal recurring nature. Net revenues and net earnings attributable to PMI for any interim period are not necessarily indicative of results that may be expected for the entire year.

In the fourth quarter of 2022, PMI acquired a controlling interest of the total issued shares in Swedish Match AB (“Swedish Match”). The operating results of Swedish Match are included in a separate segment. For further details, see Note 2. Acquisitions and Note 9. Segment Reporting.

In the third quarter of 2021, PMI acquired Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. On March 31, 2022, PMI launched a Wellness and Healthcare business consolidating these entities, Vectura Fertin Pharma. The operating results of this business are reported in the Wellness and Healthcare segment. For further details, see Note 9. Segment Reporting.

To further support the growth of PMI's smoke-free business, reinforce consumer centricity, and increase the speed of innovation and deployment, in January 2023, PMI began managing its business in four geographical segments, down from six previously, in addition to its continuing Swedish Match and Wellness and Healthcare segments. The four geographical segments are as follows: Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region ("SSEA, CIS & MEA"); East Asia, Australia, and PMI Duty Free Region ("EA, AU & PMI DF"); and Americas Region.

Certain prior years' amounts have been reclassified to conform with the current year's presentation. As a result of the new regional structure discussed above, certain goodwill amounts under the former six geographical segments were reallocated to the four geographical segments under the new structure. For further details, see Note 6. Goodwill and Other Intangible Assets, net. Following the Swedish Match acquisition and a review of PMI and Swedish Match’s combined product portfolio, PMI reclassified certain of its own products previously reported under its combustible tobacco product category to the newly created smoke-free product category to better reflect the characteristics of these products. For further details, see Note 9. Segment Reporting. These reclassifications did not impact PMI’s consolidated financial position, results of operations or cash flows in any of the periods presented.

These statements should be read in conjunction with the audited consolidated financial statements and related notes, which appear in PMI’s Annual Report on Form 10-K for the year ended December 31, 2022.
13
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Note 2. Acquisitions:

Transactions With Noncontrolling Interests

Turkey – In the first quarter of 2022, PMI acquired the remaining 25% stake of its holding in Philip Morris Tütün Mamulleri Sanayi ve Ticaret A.Ş. ("PMTM") (formerly Philsa Philip Morris Sabanci Sigara ve Tütüncülük Sanayi ve Ticaret A.Ş.) and 24.75% stake in Philip Morris Pazarlama ve Satiş A.Ş. ("PMPS") (formerly Philip Morris SA, Philip Morris Sabanci Pazarlama ve Satiş A.Ş.) from its Turkish partners, Sabanci Holding for a total acquisition price including transaction costs and remaining dividend entitlements of approximately $223 million. As a result of this acquisition, PMI owned 100% of these Turkish subsidiaries as of December 31, 2022. The purchase of the remaining stakes in these holdings resulted in a decrease to PMI's additional paid-in capital of $30 million and an increase to accumulated other comprehensive losses of $171 million primarily following the reclassification of accumulated currency translation losses from noncontrolling interests to PMI’s accumulated other comprehensive losses during the first quarter of 2022.

In January 2023, PMI sold the acquired stakes of its holdings in PMTM and PMPS to Pioneers Tutun Yatirim Anonim Sirketi (“Pioneers”) for a consideration of approximately $258 million, including transaction costs and dividend entitlements. The sale resulted in an increase to PMI's additional paid-in capital of $36 million and a decrease to accumulated other comprehensive losses of $179 million, following the reclassification of accumulated other comprehensive losses from PMI’s accumulated other comprehensive losses to noncontrolling interests.

Business Combinations

Swedish Match AB – On November 11, 2022 (the acquisition date), Philip Morris Holland Holdings B.V. (“PMHH”), a wholly owned subsidiary of PMI, acquired a controlling interest of 85.87% of the total issued shares in Swedish Match AB (“Swedish Match”) and acquired 94.81% of its outstanding shares as of December 31, 2022. The shares were acquired through acceptances of the tender offer and a series of open market and over-the-counter purchases. PMI funded the acquisition through cash on-hand and debt proceeds, as described in Note 12. Indebtedness. The aggregate cash paid as of the acquisition date was $14,460 million (or $13,976 million net of cash acquired), which was included in investing activities in the consolidated statements of cash flows for the year ended December 31, 2022. The cash paid in connection with the additional purchases of the noncontrolling interests after the acquisition date and through December 31, 2022 amounted to $1,495 million and was included in financing activities in the consolidated statements of cash flows for the year ended December 31, 2022.

In accordance with the Swedish Companies Act, PMI subsequently exercised its right to initiate arbitral proceedings to compulsorily redeem the remaining shares for which acceptances were not received and obtained legal title to 100% of the shares in Swedish Match on February 17, 2023. Cash paid in connection with such legal title, together with an immaterial amount attributable to open market purchases that were executed in December 2022 but settled in January 2023, amounted to $883 million and was included in financing activities in the condensed consolidated statements of cash flows for the nine months ended September 30, 2023. While PMI has paid the referenced amounts and has acquired legal title to the shares, the redemption process will not be complete under the Swedish Companies Act until a final redemption price is determined by an arbitral tribunal. On September 12, 2023, the arbitral tribunal determined the final redemption price to be Swedish krona (SEK) 115.07, which is unchanged from the SEK 115.07 that PMI paid per share in connection with obtaining legal title to the shares. This final redemption price is subject to appeal by the remaining minority shareholders within 60 days. Pending appeal, PMI expects this process to be completed in the fourth quarter of 2023 and believes that the likelihood of additional payments to be made is remote.

Swedish Match is a market leader in oral nicotine delivery with a significant presence in the United States market. The acquisition will accelerate PMI’s transformation to become a smoke-free company with a comprehensive global smoke-free portfolio with leadership positions in heat-not-burn, and the fastest growing category of oral nicotine, with the potential for accelerated international expansion.

14
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The table below summarizes the preliminary purchase price allocation for the fair value of assets acquired and liabilities assumed as of the acquisition date, including the measurement period adjustments made for the first nine months of 2023. PMI is still assessing information received as of the acquisition date and expects to complete the allocation by the end of the measurement period in November 2023.
(in millions)
Recognized as of the acquisition dateMeasurement Period AdjustmentsRecognized as of September 30, 2023
Cash and cash equivalents$484 $— $484 
Trade receivables135 — 135 
Other receivables53 — 53 
Inventories444 (7)437 
Other current assets524 (109)415 
Property, plant and equipment627 50 677 
Other intangible assets 4,512 3,289 7,801 
Other non-current assets214 4 218 
Current portion of long-term debt224 — 224 
Accounts payable120 — 120 
Other current liabilities531 1 532 
Income taxes 14 — 14 
Long-term debt1,126 (5)1,121 
Deferred income taxes 1,253 836 2,089 
Other non-current liabilities187 9 196 
Identifiable net assets acquired3,538 2,386 5,924 
Noncontrolling interest2,379 — 2,379 
Goodwill 13,301 (2,386)10,915 
Total consideration transferred$14,460 $— $14,460 

The total fair value step-up adjustment for inventories was $146 million, of which $125 million was recognized in cost of sales in the fourth quarter of 2022 and the remaining balance in the first quarter of 2023.

The fair value of long-term debt was primarily determined using readily available market prices as of the acquisition date and the total purchase price adjustment of $(107) million is being amortized as an increase to interest expense, net over the lives of the related debt.

Goodwill is primarily attributable to future growth opportunities, anticipated synergies in the U.S. and intangible assets that did not qualify for separate recognition. The goodwill is not deductible for income tax purposes.

Identifiable intangible assets of Swedish Match consist of:
Type Useful LifeEstimated Fair Value (in millions)
TrademarksNon-amortizable$3,133 
TrademarksAmortizable
20 - 30 years
1,067 
Developed technology, including patents10 years113 
Customer relationships
6 - 15 years
3,488 
Total identifiable intangible assets$7,801 

15
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The significant assumptions used in determining the preliminary fair values of the identifiable intangible assets included royalty rates, revenue growth rates, profit margins, customer attrition rates and discount rates.

Trademarks primarily relate to $3,133 million for the ZYN trademark, which has been determined to have an indefinite life due to the fast growth and the leading position of the brand in the U.S. market. All other trademarks have been determined to have a useful life ranging between 20 - 30 years. The trademarks have been valued using the relief from royalty method supported by revenue growth rate assumptions and royalty rates disaggregated at the individual trademark level.

Developed technology, including patents, relates to the nicotine pouch technology of $113 million. These patents have been assigned a useful life of 10 years, which is in line with their protection period and have been valued using the comparable transactions and income methods.

Customer relationships have been valued by categories of customers and geographic locations, namely the U.S. market, Scandinavia, and other markets using the multiple periods excess earnings method. The significant assumptions included customer attrition rates disaggregated at the customer category level, the revenue growth rates, as well as profit margins.

PMI consolidated statements of earnings for the year ended December 31, 2022, include $316 million of net revenues and $(26) million of net losses associated with the results of operations of Swedish Match from the acquisition date to December 31, 2022. The operating results of Swedish Match are included in a separate segment.

Acquisition related transaction costs, which were comprised primarily of regulatory, financial advisory and legal fees, totaled $59 million for the year ended December 31, 2022, and were included in marketing, administration and research costs in the consolidated statements of earnings. Bridge and term loan credit agreement related fees associated with the issuance of debt amounted to $54 million, of which $37 million were capitalized at the acquisition date. The fair value of the noncontrolling interest was based on the tender offer as of the acquisition date.

Under the EU Merger Regulation, approval by the European Commission of PMI's acquisition of Swedish Match was conditional on PMHH's divestiture of Swedish Match's subsidiary, SMD Logistics AB ("SMDL"), following the completion of the offer to tender all shares in Swedish Match to PMHH. As a result, these assets were accounted for as assets held for sale and included within other current assets and other accrued liabilities in PMI’s condensed consolidated balance sheets at March 31, 2023 and December 31, 2022. PMI subsequently sold SMDL on June 30, 2023 and the transaction did not have a material impact on the condensed consolidated statements of earnings for the nine months ended September 30, 2023.

The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of PMI and Swedish Match. In order to reflect the occurrence of the acquisition on January 1, 2021, as required, the unaudited pro forma financial information includes adjustments to reflect the following:

•incremental amortization expense to be incurred based on the current preliminary fair values of the identifiable intangible assets acquired;
•incremental cost of products sold related to the fair value adjustments associated with acquisition date inventory;
•additional interest expense associated with the issuance of debt to finance the acquisition, including the effects of the related derivative financial instruments designated to hedge interest rate risks as well as economic hedges;
•reclassification of non-recurring acquisition-related costs incurred during the year ended December 31, 2022, to the year ended December 31, 2021;
•impact of a deferred tax cost of $430 million in 2022 and $321 million in 2021 related to the theoretical unrealized foreign currency gains on intercompany loans related to the acquisition financing. These theoretical unrealized pre-tax foreign currency movements were fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in PMI's consolidated statements of stockholders' (deficit) equity, while the corresponding deferred tax impacts were reflected in PMI's consolidated statements of earnings; and
•other immaterial items (i.e., the alignment of accounting policies from IFRS to US GAAP.)

16
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition.

The unaudited pro forma financial information is as follows:
For the Years Ended December 31,
(in millions)20222021
Net revenues$33,579 $33,488 
Net earnings attributable to PMI$8,788 $8,495 

Altria Group, Inc. Agreement

On October 20, 2022, PMI announced that it had reached an agreement with Altria Group, Inc. ("Altria") to end the companies' relationship regarding the IQOS commercialization rights in the U.S. as of April 30, 2024. As a result of PMI reacquiring these rights, effective May 1, 2024, PMI will hold the full rights to commercialize IQOS in the U.S. As part of the agreement, PMI agreed to pay a total cash consideration of $2.7 billion, with $1.0 billion paid at the inception of the agreement and the remaining $1.7 billion (plus interest, at a per annum rate equal to six percent (6%)), to be paid by July 2023 at the latest. The cash consideration paid at the inception of the agreement of $1.0 billion has been accounted for within other assets in PMI’s condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022. The remaining consideration of $1.7 billion plus interest was paid to Altria on July 14, 2023 and has been accounted for within other assets in PMI's condensed consolidated balance sheets as of September 30, 2023. PMI will finalize the accounting for this transaction by assigning the consideration to the respective assets in May 2024, when PMI can exercise its ability to commercialize IQOS in the U.S.


Note 3. War in Ukraine:

Since the onset of the war in Ukraine in February 2022, PMI's main priority has been the safety and security of its employees and their families in the country.

Ukraine

PMI temporarily suspended its commercial and manufacturing operations in Ukraine, including the closing of its factory in Kharkiv at the end of February 2022, in order to preserve the safety of its employees. PMI subsequently resumed some retail activities where safety allowed, in order to provide product availability and service to adult consumers, and began to supply the market from production centers outside Ukraine, as well as through a contract manufacturing arrangement. Production at the factory in Kharkiv remains suspended. While the effects of the war are unpredictable and could trigger impairment reviews for long-lived assets, as of September 30, 2023, PMI is unable to estimate the information required to perform impairment analyses (i.e., forecast of revenues, manufacturing and commercial plans). PMI is not aware of any major damage to its production facilities, inventories or other assets in Ukraine. As a result, PMI has not recorded an impairment of long-lived assets. As of September 30, 2023, PMI’s Ukrainian operations had approximately $500 million in total assets, excluding intercompany balances. These total assets included $82 million, $350 million and $28 million in receivables, inventories and property, plant and equipment, respectively.

Russia

PMI has suspended its planned investments in the Russian Federation including all new product launches and commercial, innovation, and manufacturing investments. PMI has also taken steps to scale down its manufacturing operations in Russia amid ongoing supply chain disruptions and the evolving regulatory environment. PMI is continuously assessing the evolving situation in Russia, including recent regulatory constraints in the market that entail very complex terms and conditions that must be met for any divestment transaction to be granted approval by the authorities, and restrictions resulting from international regulations. As a result of PMI continuing operations within Russia as of September 30, 2023, it has not recorded an impairment of long-lived and other assets. However, PMI recorded specific asset write downs in 2022 as referred to in the table below. PMI’s Russian operations as of September 30, 2023 had approximately $2.4 billion in total assets, excluding
17
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
intercompany balances. These total assets included $677 million, $411 million, $838 million, $242 million and $158 million in cash (primarily held in local currency), receivables, inventories, property, plant and equipment and goodwill, respectively. In addition, there was approximately $1,343 million of cumulative foreign currency translation losses reflected in accumulated other comprehensive losses in the condensed consolidated statement of stockholders’ equity as of September 30, 2023.

During the nine months and three months ended September 30, 2023 and 2022, PMI recorded in its condensed consolidated statements of earnings pre-tax charges related to circumstances driven by the war as follows:

(in millions)For the Nine Months Ended September 30, 2023For the Nine Months Ended September 30, 2022
Cost of salesMarketing, administration and research costsTotalCost of salesMarketing, administration and research costsTotal
Ukraine 1
$11 $8 $19 $28 $31 $59 
Russia 2
— — — 18 51 69 
Total$11 $8 $19 $46 $82 $128 
1 The 2023 pre-tax charges were primarily due to the cost of PMI’s humanitarian efforts, which includes salary continuation for its employees. The 2022 pre-tax charges were primarily due to an inventory write-down, additional allowance for receivables and the cost of PMI’s humanitarian efforts, which includes salary continuation for its employees.
2 The pre-tax charges were primarily due to machinery and inventory write downs related to the commercial decisions noted above.

(in millions)For the Three Months Ended September 30, 2023For the Three Months Ended September 30, 2022
Cost of salesMarketing, administration and research costsTotalCost of salesMarketing, administration and research costsTotal
Ukraine 1
$11 $8 $19 $3 $5 $8 
Russia — — — (3)1 (2)
Total$11 $8 $19 $— $6 $6 
1 The pre-tax charges were primarily due to PMI’s humanitarian efforts, which includes salary continuation for its employees.

PMI will continue to monitor the situation as it evolves and will determine if further charges are needed.


Note 4. Stock Plans:

In May 2022, PMI’s shareholders approved the Philip Morris International Inc. 2022 Performance Incentive Plan (the “2022 Plan”). Under the 2022 Plan, PMI may grant to eligible employees restricted shares and restricted share units, performance-based cash incentive awards and performance-based equity awards. Up to 25 million shares of PMI’s common stock may be issued under the 2022 Plan. At September 30, 2023, shares available for grant under the 2022 Plan were 22,165,030.

In May 2017, PMI’s shareholders approved the Philip Morris International Inc. 2017 Stock Compensation Plan for Non-Employee Directors (the “2017 Non-Employee Directors Plan”). A non-employee director is defined as a member of the PMI Board of Directors who is not a full-time employee of PMI or of any corporation in which PMI owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation. Up to 1 million shares of PMI common stock may be awarded under the 2017 Non-Employee Directors Plan. At September 30, 2023, shares available for grant under the plan were 876,226.

18
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Restricted share unit (RSU) awards

During the nine months ended September 30, 2023 and 2022, shares granted to eligible employees and the weighted-average grant date fair value per share related to RSU awards were as follows:
Number of
Shares
Granted		Weighted-Average Grant Date Fair Value Per RSU Award Granted
20231,756,750 $ 101.96 
20221,579,680 $  104.96 

Compensation expense related to RSU awards was as follows:
Compensation Expense Related to RSU Awards
(in millions)For the Nine Months Ended September 30,For the Three Months Ended September 30,
2023$ 124 $ 38 
2022$ 109 $ 35 

As of September 30, 2023, PMI had $199 million of total unrecognized compensation cost related to non-vested RSU awards. The cost is recognized over the original restriction period of the awards, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58.

During the nine months ended September 30, 2023, 1,421,086 RSU awards vested. The grant date fair value of all the vested awards was approximately $124 million. The total fair value of RSU awards that vested during the nine months ended September 30, 2023 was approximately $143 million.

Performance share unit (PSU) awards

During the nine months ended September 30, 2023 and 2022, PMI granted PSU awards to certain executives. The PSU awards require the achievement of certain performance metrics, which are predetermined at the time of grant, typically over a three-year performance cycle. The performance metrics for such PSU's granted during the nine months ended September 30, 2023 and 2022 consisted of PMI's Total Shareholder Return ("TSR") relative to a predetermined peer group and on an absolute basis (40% weight), PMI’s currency-neutral compound annual adjusted diluted earnings per share growth rate (30% weight), and a Sustainability Index, which consists of two drivers:

•Product Sustainability (20% weight) measuring progress on PMI's efforts to maximize the benefits of smoke-free products, purposefully phase out cigarettes, seek net positive impact in wellness and healthcare, and reduce post-consumer waste; and

•Operational Sustainability (10% weight) measuring progress on PMI's efforts to tackle climate change, preserve nature, improve the quality of life of people in its supply chain, and foster an empowered, and inclusive workplace.

The aggregate of the weighted performance factors for the three metrics in each such PSU award determines the percentage of PSUs that will vest at the end of the three-year performance cycle. The minimum percentage of such PSUs that can vest is zero, with a target percentage of 100 and a maximum percentage of 200. Each such vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned.

19
Philip Morris International Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
During the nine months ended September 30, 2023 and 2022, shares granted to eligible employees and the grant date fair value per share related to PSU awards were as follows:
Number of Shares GrantedWeighted-
Average PSU Grant Date 
Fair Value Subject to Other Performance Factors 		Weighted-
Average PSU Grant Date 
Fair Value Subject to TSR Performance Factors
(Per Share)(Per Share)
2023482,360 $ 102.02 $ 133.54 
2022451,790 $  105.07 $ 143.94 

The grant date fair value of the PSU awards subject to the other performance factors was determined by using the market price of PMI’s stock on the date of the grant. The grant date fair value of the PSU market-based awards subject to the TSR performance factor was determined by using the Monte Carlo simulation model. The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor:
20232022
Average risk-free interest rate (a)
4.1 %1.6 %
Average expected volatility (b)
24.3 %28.6 %
(a) Based on the U.S. Treasury yield curve.
(b) Determined using the observed historical volatility.

Compensation expense related to PSU awards was as follows:
Compensation Expense Related to PSU Awards
(in millions)For the Nine Months Ended September 30,For the Three Months Ended September 30,
2023$ 51 $ 6 
2022$  44 $  13 

As of September 30, 2023, PMI had $