06:59 Thu 08 Feb 2018
Philip Morris International Inc. (PMI) Reports 2017 Results; Excluding Currency & Tax Items, Full-Ye
--(BUSINESS WIRE)--
2017 Full-Year
2017 Fourth-Quarter
2018 Full-Year Forecast
Impact of Tax Reform
In , the Tax Cuts and Jobs Act (the “Act”) was signed into
law. The principal elements of the Act relevant to our consolidated
financial statements for the year ended , were:
In connection with these elements of the Act, PMI recognized a
provisional expense of , which was included as a component
of income tax expense as follows:
While the impacts of the Act reduced net earnings by , there
was no net impact on operating cash flows for the year, as the changes
in deferred taxes and income taxes payable offset the net earnings
impact. At , PMI recorded an income tax payable of representing the transition tax of , primarily
offset by foreign tax credits related to foreign withholding taxes
previously paid of . The income tax payable is due over an
8-year period beginning in 2018.
Other provisions of the Act did not have a significant impact on PMI’s
consolidated financial statements for the year ended ,
but may impact the effective tax rate in subsequent periods.
The Act has significant complexity and our final tax liability may
materially differ from these estimates, due to, among other things,
changes in PMI's assumptions, guidance that may be issued by the and the and related
interpretations and clarifications of tax law. For the transition tax,
further information is required to finalize the estimated amount of
accumulated foreign earnings as well as to validate the amount of
earnings represented by the aggregate foreign cash position as defined
in the Act. For the re-measurement of the deferred tax assets and
liabilities, further analysis will be required to refine PMI's
calculations and related account balances. PMI will complete the
remaining elements of its analysis during 2018, and any adjustments to
the provisional charges will be included in income tax expense or
benefit in the appropriate period, in accordance with guidance provided
by Staff Accounting Bulletin No. 118.
Following the enactment of the Act, PMI's 2018 full-year diluted
earnings per share forecast -- based on the current interpretation of
the legislation -- assumes a full-year effective tax rate of
approximately 28%, subject to future regulatory developments and
earnings mix by taxing jurisdiction. The difference between the 21%
statutory rate under the new law and PMI's effective rate reflects the
fact that PMI operates in markets outside of and is
driven by three main factors: foreign tax rate differences,
non-deductibility of interest expense and a partial disallowance of
foreign tax credits related to the application of the rules for global
intangible low-taxed income.
2017 FULL-YEAR AND FOURTH-QUARTER CONSOLIDATED RESULTS
(/Euronext Paris: PM) today
announced its 2017 full-year and fourth-quarter results.
"
," said ,
Chief Executive Officer.A strong fourth-quarter performance helped drive robust
full-year results, exemplified by currency-neutral, double-digit
adjusted earnings per share growth, despite previously disclosed
challenges in and
"
."The excellent performance of our flagship smoke-free product
IQOS -- not only in , but also in the vast majority of our launch
geographies -- underscored its great promise and the commitment of our
employees to lead the transformation of our industry towards a
smoke-free future. Continued investment behind IQOS in 2018 is expected
to further drive its positive momentum
" ."For the first time since 2011, we have entered the year with annual guidance that reflects a positive currency impact.Our combustible product portfolio provides us with a strong foundation.The confirmed potential of our smoke-free alternatives reinforces our strong determination to deploy all necessary resources to accelerate their growth, which will drive our business success and ability to generously reward our shareholders over the long term
Conference Call
A conference call, hosted by , Chief Executive
Officer, and , Chief Financial Officer, with members of the
investor community and news media, will be webcast at , on . Access is at
.
The audio webcast may also be accessed on iOS or Android devices by
downloading PMI’s free Investor Relations Mobile Application at
.
Dividends
During 2017, PMI increased its regular quarterly dividend by 2.9%, from
to , representing an annualized rate of per common
share. Since its spin-off in , PMI has increased its regular
quarterly dividend by 132.6% from the initial annualized rate of
per common share, or a compound annual growth rate of 9.8%.
Key Terms, Definitions and Explanatory Notes
General
Financial
Reduced-Risk Products
SHIPMENT VOLUME
2017 Full-Year
Estimated international cigarette and heated tobacco unit volume,
excluding and , of 2.8 trillion, down by 2.8%
PMI's total shipment volume decreased by 2.7%, principally due to:
Excluding the favorable net impact of estimated cigarette and heated
tobacco unit inventory movements of approximately 3.3 billion units,
PMI's total shipment volume decreased by 3.1%. The favorable inventory
movements were driven primarily by approximately 8.5 billion units net
in reflecting: the increasing demand for
,
anticipated to further increase in the first quarter of 2018 following a
planned lifting of the restriction on
device sales; the
establishment of appropriate distributor inventory levels of heated
tobacco units, given the current high dependence on a single
manufacturing center; and the transition from air freight to sea freight
of heated tobacco units, largely completed in the fourth quarter of
2017. These favorable inventory movements were partly offset by a
reduction of combustible product inventory levels, mainly in: the EU,
notably and ; and EEMA, notably , and
.
2017 Fourth-Quarter
PMI's total shipment volume increased by 3.8%, principally driven by:
The increase in PMI's total shipment volume was partly offset by lower cigarette shipment volume in:
Excluding the favorable net impact of estimated cigarette and heated
tobacco unit inventory movements of approximately 5.0 billion units,
driven primarily by , reflecting the same dynamics as for the full
year, PMI's total shipment volume increased by 1.4%.
PMI shipment volume by brand is shown in the table below.
2017 Full-Year
PMI's cigarette shipment volume of
decreased in: the EU,
mainly due to , and ; EEMA, predominantly due to , reflecting the impact of the new excise tax implemented in that resulted in the doubling of the retail price of
from to per pack, partly offset by , notably
and , and ; , mainly due to and ,
principally reflecting out-switching to heated tobacco products, partly
offset by and ; and & ,
mainly due to and .
PMI's cigarette shipment volume of the following brands decreased:
,
mainly due to , and , partly offset by ,
, and ;
, mainly due to
, and , partly offset by ;
, mainly due to , and ;
,
principally due to ; and "Others," mainly due to low-price brands
in , , , and .L&M
PMI's cigarette shipment volume of the following brands increased:
notably driven by , , , , and
, partly offset by and ; and
,
mainly driven by and , notably reflecting successful
portfolio consolidation of local, low-price brands in "Others," partly
offset by and .Chesterfield,Philip Morris
2017 Fourth-Quarter
PMI's cigarette shipment volume of
was essentially flat,
with declines in: EEMA, predominantly due to , reflecting
the same dynamic as for the full year, partly offset by ,
notably and ; and & , mainly due to
and ; offset by growth in the EU, driven notably by
, and . Cigarette shipment volume of
was flat in , with growth in and offset by
declines in and , principally reflecting out-switching to
heated tobacco products
PMI's cigarette shipment volume of the following brands decreased:
,
mainly due to and , partly offset by ,
and ;
, mainly due to , and
;
, principally due to , partly offset by ;
and "Others," mainly due to local, low-price brands in , , and , partly offset by premium local brands
in .L&M
PMI's cigarette shipment volume of the following brands increased:
,
notably driven by and , partly offset by , and
;
mainly driven by , ,
reflecting successful brand portfolio consolidation, , and , partly offset by and ; and
, mainly driven by and , notably reflecting
successful portfolio consolidation of local, low-price brands in
"Others," partly offset by and .
NET REVENUES (Excluding Excise Taxes)
Note: Sum of product categories or Regions might not foot to total PMI due to rounding.
2017 Full-Year
Net revenues, excluding excise taxes, of increased by
7.7%, as detailed above and in the attached Schedule 14. Excluding
unfavorable currency of , net revenues, excluding excise
taxes, increased by 9.4%, driven by a favorable pricing variance of from across all Regions, despite low price realization in
, and favorable volume/mix of , driven by and
despite unfavorable volume/mix in EEMA, mainly due to and .
2017 Fourth-Quarter
Net revenues, excluding excise taxes, of increased by
19.0%, as detailed above and in the attached Schedule 10. Excluding
favorable currency of , net revenues, excluding excise taxes,
increased by 18.8%, driven by a favorable pricing variance of from across all Regions, despite low price realization in
, and favorable volume/mix of , driven by the EU and
and despite unfavorable volume/mix in EEMA, mainly due to .
OPERATING COMPANIES INCOME
2017 Full-Year
Operating companies income of increased by 6.0%. Excluding
unfavorable currency of , operating companies income
increased by 7.4%, reflecting a favorable pricing variance across all
Regions, and favorable volume/mix of , partly offset by an
unfavorable cost comparison, primarily reflecting increased investment
behind reduced-risk products, predominantly in the EU and .
Adjusted operating companies income and margin are shown in the table below and detailed in Schedule 16. Adjusted operating companies income, excluding unfavorable currency, increased by 7.4%. Adjusted operating companies income margin, excluding unfavorable currency, decreased by 0.8 points to 41.0%, reflecting the factors mentioned above, as detailed on Schedule 16.
2017 Fourth-Quarter
In the quarter, operating companies income of increased by
25.5%. Excluding favorable currency of , operating companies
income increased by 18.2%, mainly driven by a favorable pricing variance
across all Regions and favorable volume/mix of , driven by
the EU and , partly offset by an unfavorable cost comparison,
primarily reflecting increased investment behind reduced-risk products,
predominantly in the EU.
Adjusted operating companies income and margin are shown in the table below and detailed in Schedule 12. Adjusted operating companies income, excluding favorable currency, increased by 18.2%. Adjusted operating companies income margin, excluding favorable currency, decreased by 0.1 point to 38.5%, reflecting the factors mentioned above, as detailed on Schedule 12.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.
EUROPEAN UNION REGION (EU)
2017 Full-Year
Net revenues, excluding excise taxes, of , increased by
1.9%. Excluding favorable currency of , net revenues,
excluding excise taxes, increased by 1.4%, mainly reflecting a favorable
pricing variance of , driven principally by ,
and the , partly offset by , and . The
favorable pricing was partly offset by unfavorable volume/mix of , mainly driven by , and the , partly
offset by and .
Operating companies income of decreased by 5.5%. Excluding
unfavorable currency of , operating companies income
decreased by 4.4%, mainly due to: unfavorable volume/mix of , mainly in , and the , partly offset
by and ; and increased investment behind reduced-risk
products across the Region; partly offset by favorable pricing.
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 16. Adjusted operating companies income, excluding unfavorable currency, decreased by 4.4%. Adjusted operating companies income margin, excluding unfavorable currency, decreased by 2.7 points to 46.2%, reflecting the factors mentioned above, as detailed on Schedule 16.
2017 Fourth-Quarter
Net revenues, excluding excise taxes, of , increased by
16.5%. Excluding favorable currency of , net revenues,
excluding excise taxes, increased by 9.3%, mainly reflecting; a
favorable pricing variance of , driven principally by
and the , partly offset by , and ; and
favorable volume/mix of across the Region, notably in
and .
Operating companies income of increased by 10.5%. Excluding
favorable currency of , operating companies income increased
by 6.1%, mainly driven by: a favorable pricing variance and favorable
volume/mix of across the Region, notably in and
; partly offset by increased investment behind reduced-risk
products across the Region.
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 12. Adjusted operating companies income, excluding favorable currency, increased by 6.1%. Adjusted operating companies income margin, excluding favorable currency, decreased by 1.4 points to 44.8%, reflecting the factors mentioned above, as detailed on Schedule 12.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.
EU Total Market, PMI Shipment & Market Share Commentaries
2017 Full-Year
The estimated total market in the EU decreased by 1.9% to 492.1 billion
units. market share was flat at 38.3%, with gains in
, and offset by declines in and .
PMI's total shipment volume decreased by 2.4% to 189.2 billion units, or
by 1.9% excluding estimated net inventory movements, notably in
and . The decrease in cigarette shipment volume of
was
mainly due to , and . The decrease in cigarette
shipment volume of
was mainly due to , and
, partly offset by . The decrease in cigarette shipment
volume of
was mainly due to , and
, partly offset by . The decrease in cigarette shipment
volume of
was mainly due to . The decrease in
cigarette shipment volume of "Others" was due notably to
in .
2017 Fourth-Quarter
The estimated total market in the EU increased by 0.4% to 119.3 billion
units. PMI's total shipment volume increased by 3.1% to 46.7 billion
units, mainly driven by higher cigarette shipment volume in ,
and , partly offset by , as well as higher heated
tobacco unit shipment volume. The increase in cigarette shipment volume
of
was notably driven by , and ,
partly offset by . The increase in cigarette shipment volume of
was mainly driven by . The decrease in cigarette shipment
volume of
was mainly due to , partly offset by
. The decrease in cigarette shipment volume of
was
mainly due to and , partly offset by . The increase in
cigarette shipment volume of "Others" was driven mainly by
in and local brands in .
PMI's total market share increased by 0.7 points to 38.9%, with gains in
, and , partly offset by declines in and .
Key Market Commentaries
In
, estimated industry size, PMI shipment volume and
market share performance, shown in the table below, include cigarettes
and PMI's heated tobacco units.
*Includes heated tobacco units.
For the full year, the estimated total market decreased by 1.2%. The
increase in PMI's shipment volume was driven by higher market share,
notably of
, reflecting the growth of both
Red and Gold
in 30s packs launched in .
In the quarter, the estimated total market decreased by 1.0%. The increase in PMI's shipment volume was driven by higher market share, reflecting the same dynamics as for the full year.
In
, estimated industry size, PMI shipment volume and
market share performance, shown in the table below, include cigarettes
and PMI's heated tobacco units.
*Includes heated tobacco units.
For the full year, the estimated total market decreased by 1.6%, or by
2.7% excluding the net impact of estimated trade inventory movements,
mainly reflecting the impact of price increases in . The
decrease in PMI's shipment volume was mainly due to the lower total
market, partly offset by higher market share.
In the quarter, the estimated total market increased by 4.2%. Excluding the net impact of estimated trade inventory movements, the estimated total market was flat. The increase in PMI's total shipment volume and market share largely reflected the benefit of the trade inventory movements.
In
, estimated industry size, PMI shipment volume and market
share performance, shown in the table below, include cigarettes and
PMI's heated tobacco units.
For the full year, the estimated total market decreased by 3.2%, partly
reflecting the implementation of the Tobacco Product Directive's ban on
pack sizes of ten cigarettes at the end of 2016. The decline of PMI's
shipments, down by 3.6% excluding the net impact of distributor
inventory movements, mainly reflected the lower total market, as well as
lower cigarette market share, principally due to
, partly
reflecting the ban on pack sizes of ten cigarettes, and low-price
, impacted by the growth of the super-low price segment,
partly offset by
and
in "Others."
In the quarter, the estimated total market increased by 0.7%, largely
reflecting a favorable comparison with the fourth quarter of 2016 driven
by estimated trade inventory movements associated with the
implementation of the Tobacco Products Directive. Excluding these
inventory movements, the estimated total market declined by 2.9%. The
increase of PMI's shipments mainly reflected the higher total market and
market share, principally driven by:
, benefiting from a
favorable comparison with the fourth quarter of 2016 following the
aforementioned ban on pack sizes of ten cigarettes;
; and
in "Others," partly offset by low-price
,
impacted by the growth of the super-low price segment.
In
, estimated industry size, PMI shipment volume and
market share performance, shown in the table below, include cigarettes
and PMI's heated tobacco units.
For the full year, the estimated total market increased by 0.9%. The
increase in PMI's shipment volume was primarily driven by the higher
total market and higher market share, driven by
,
benefiting from brand support, partly offset by
,
reflecting pressure from competitive brands in the below premium segment.Chesterfield
In the quarter, the estimated total market increased by 4.8%. The
increase in PMI's shipment volume primarily reflected the higher total
market, partly offset by lower market share, notably of
and
impacted by the growth of the super-low price
segment, partly offset by
and
.
In
, estimated industry size, PMI shipment volume and market
share performance, shown in the table below, include cigarettes and
PMI's heated tobacco units.
*Includes heated tobacco units.
For the full year, the estimated total market decreased by 3.5%, or by
2.5% excluding the net impact of estimated trade inventory movements.
The decline of PMI's shipment volume, down by 8.0% excluding the net
impact of distributor inventory movements, mainly reflected the lower
total market, and lower market share, due to
, reflecting
the impact of price increases, particularly above the round €5.00 per
pack price point in the vending channel, as well as a challenging
comparison with 2016 in which the market share of
grew
by 1.0 point.
In the quarter, the estimated total market decreased by 4.4%, or by 1.4%
excluding the net impact of estimated trade inventory movements. The
decline of PMI's shipment volume, down by 8.7% excluding the net impact
of distributor inventory movements, was mainly due to the lower total
market and lower market share, principally due to
,
mainly reflecting the impact of price increases.
, &
(EEMA)
2017 Full-Year
Net revenues, excluding excise taxes, of decreased by 4.3%.
Excluding unfavorable currency of , net revenues, excluding
excise taxes, decreased by 0.1%, principally due to unfavorable
volume/mix of , primarily reflecting a lower total market in
, and a lower total market and market share in ,
mainly resulting from the implementation of the new excise tax. The
unfavorable volume/mix was partly offset by a favorable pricing variance
of , despite low price realization in , driven notably
by and .
Operating companies income of decreased by 4.2%. Excluding
favorable currency of , operating companies income decreased
by 6.9%, principally due to: unfavorable volume/mix of ,
predominantly in and , partly offset by a favorable
pricing variance.
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 16. Adjusted operating companies income, excluding favorable currency, decreased by 6.9%. Adjusted operating companies income margin, excluding favorable currency, decreased by 2.9 points to 40.2%, reflecting the factors mentioned above, as detailed on Schedule 16.
2017 Fourth-Quarter
Net revenues, excluding excise taxes, of decreased by 1.9%.
Excluding unfavorable currency of , net revenues, excluding
excise taxes, decreased by 0.6%, principally due to unfavorable
volume/mix of , primarily reflecting a lower total market in
, and a lower total market and market share in ,
mainly resulting from the implementation of the new excise tax, partly
offset by and . The unfavorable volume/mix was partly
offset by a favorable pricing variance of , driven mainly by
, notably , , despite low price realization, and
, partly offset by .
Operating companies income of increased by 11.6%. Excluding
favorable currency of , operating companies income decreased
by 30.5%, principally due to unfavorable volume/mix of , and
unfavorable costs compared to the fourth quarter of 2016 due to:
increased investment behind reduced-risk products; investment income in
; and other operating costs, primarily in ; partly
offset by a favorable pricing variance.
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 12. Adjusted operating companies income, excluding favorable currency, decreased by 30.5%. Adjusted operating companies income margin, excluding favorable currency, decreased by 10.5 points to 24.4%, reflecting the factors mentioned above, as detailed on Schedule 12.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.
EEMA Total Market, PMI Shipment & Market Share Commentaries
2017 Full-Year
The estimated total market in EEMA decreased by 2.8% to 1.0 trillion
units. market share decreased by 0.3 points to 24.9%.
PMI's total shipment volume decreased by 5.1% to 257.7 billion units,
mainly reflecting: lower cigarette shipment volume in , - where PMI's cigarette shipment volume declined by 35.8%,
impacted by the new excise tax implemented in that resulted in
the doubling of retail prices - and ; partly offset by higher
cigarette shipment volume in , notably , and higher
heated tobacco unit shipment volume. The decrease in cigarette shipment
volume of
was predominantly due to ,
reflecting the impact of the excise tax that resulted in the doubling of
the brand's retail price from to per pack, partly offset
by , mainly and , and . The decrease in
cigarette shipment volume of
was mainly due to ,
and , partly offset by and . The
decrease in cigarette shipment volume of
was mainly
due to , and . The decrease in cigarette
shipment volume of
was mainly due to and , partly offset by . The increase in cigarette shipment
volume of
was driven mainly by and ,
largely reflecting successful portfolio consolidation of local,
low-price brands in "Others."
2017 Fourth-Quarter
PMI's total shipment volume decreased by 1.0% to 67.2 billion units,
mainly reflecting: lower cigarette shipment volume in , and - where PMI's cigarette shipment volume declined by 60.3%,
reflecting the impact of the aforementioned excise tax - partly offset
by , notably , and , as well as higher heated
tobacco shipment volume. The decrease in cigarette shipment volume of
was predominantly due to , reflecting the same dynamic
as for the full year, partly offset by , notably ,
and . The decrease in cigarette shipment volume of
was
mainly due to and , partly offset by and
. The decrease in cigarette shipment volume of
was mainly due to , and . The increase in
cigarette shipment volume of
was mainly driven by
and , partly offset by . The increase in
cigarette shipment volume of
was mainly driven by
and , largely reflecting successful portfolio
consolidation of local, low-price brands in "Others."
Key Market Commentaries
In
, estimated cigarette industry size, PMI cigarette
shipment volume and cigarette market share performance are shown in the
table below.
For the full year, the estimated total cigarette market increased by
1.9%, mainly driven by , partially offset by . The increase
in PMI's cigarette shipment volume was mainly driven by the higher
cigarette market, as well as higher cigarette market share, notably of
in , partly offset by
in .
In the quarter, the estimated total cigarette market increased by 8.3%,
mainly driven by and , partially offset by . The
increase in PMI's cigarette shipment volume mainly reflected higher
cigarette market and market share, notably of
in
and and
in .
In
, estimated industry size and PMI shipment volume, shown
in the table below, include cigarettes and PMI's heated tobacco units.
Market share performance, as measured by Nielsen and shown in the table
below, reflects that of cigarettes.
For the full year, the estimated total market decreased by 7.2%, reflecting the impact of excise tax-driven price increases and an increase in the prevalence of illicit trade. The decline of PMI's shipment volume was mainly due to the lower total market. PMI's market share decreased by 0.1 point. The decline of "Others" largely reflected the successful portfolio consolidation of local, low-price brands into .Philip Morris
In the quarter, the estimated total market decreased by 6.4%, reflecting
the same dynamics as for the full-year. The decline of PMI's shipment
volume was mainly due to the lower total market. The decrease in PMI's
market share was mainly due to
, largely reflecting
the impact of competitive product offerings in the low price segment,
partly offset by
, as well as
,
reflecting the same dynamic as in the quarter.Bond Street
In
, estimated cigarette industry size, PMI cigarette
shipment volume and cigarette market share performance, as measured by
Nielsen, are shown in the table below.
For the full year, the estimated total cigarette market increased by 0.7%. Excluding the net impact of estimated trade inventory movements, the estimated total cigarette market declined by 1.6%. The decrease in PMI's cigarette market share, as measured by Nielsen, was mainly due to , and and in "Others," partly offset by , principally reflecting competitive pressure from super-low price alternatives.LarkL&MMurattiChesterfield
In the quarter, the estimated total cigarette market increased by 9.8%. Excluding the net impact of estimated trade inventory movements ahead of speculated January 2018 price increases, the estimated total cigarette market increased by 6.3%. The increase in PMI's cigarette shipments was mainly due to the higher total market. The decrease in PMI's cigarette market share, as measured by Nielsen, was mainly due to and in "Others," partly offset by , reflecting competitive pressure from super-low price alternatives.L&MMurattiChesterfield
In
, estimated industry size and PMI shipment volume,
shown in the table below, include cigarettes and PMI's heated tobacco
units. Market share performance, as measured by Nielsen and shown in the
table below, reflects that of cigarettes.
For the full year, the estimated total market decreased by 8.2%, mainly
due to the impact of price increases and an increase in the prevalence
of illicit trade. The decrease in PMI's shipment volume was primarily
due to the lower total market, as well as lower cigarette market share,
as measured by Nielsen, notably of low-price
,
reflecting competitive pressure from lower-priced alternatives, partly
offset by
and
, following the
successful portfolio consolidation of a local, low-price brand in
"Others."Bond Street
In the quarter, the estimated total market decreased by 3.8%, or by 7.0% excluding the net impact of estimated trade inventory movements, mainly due to the impact of price increases. The decrease in PMI's cigarette market share, as measured by Nielsen, reflected the same dynamics as for the quarter.
2017 Full-Year
Net revenues, excluding excise taxes, of $10.8 billion increased by
24.3%. Excluding unfavorable currency of $137 million, net revenues,
excluding excise taxes, increased by 25.9%, reflecting: a favorable
pricing variance of $559 million, driven principally by ,
, and ; and a favorable volume/mix of $1.7
billion, driven by heated tobacco unit
volume in and ,
partly offset by unfavorable cigarette volume/mix, notably in ,
reflecting a lower total market impacted by excise tax-driven price
increases, and .
Operating companies income of $4.1 billion increased by 29.8%. Excluding
unfavorable currency of $123 million, operating companies income
increased by 33.7%, mainly driven by a favorable pricing variance and
favorable volume/mix of $622 million, mainly in and , partly
offset by and . The increase was partly offset by
higher costs, principally related to increased investment behind
reduced-risk products.
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 16. Adjusted operating companies income, excluding unfavorable currency, increased by 33.7%. Adjusted operating companies income margin, excluding unfavorable currency, increased by 2.3 points to 39.1%, reflecting the factors mentioned above, as detailed on Schedule 16.
2017 Fourth-Quarter
Net revenues, excluding excise taxes, of $3.4 billion increased by
40.5%. Excluding unfavorable currency of $104 million, net revenues,
excluding excise taxes, increased by 44.8%, reflecting: a favorable
pricing variance of $166 million, driven principally by ,
, and , partly offset by ; and a
favorable volume/mix of $929 million, predominantly driven by heated
tobacco unit
volume in and , as well as cigarette
volume in , partly offset by cigarette volume in
, reflecting the same dynamic as for the full year, and
.
Operating companies income of $1.4 billion increased by 53.7%. Excluding
unfavorable currency of $97 million, operating companies income
increased by 64.4%, mainly driven by a favorable pricing variance and
favorable volume/mix of $471 million, mainly in , and , partly offset by and .
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 12. Adjusted operating companies income, excluding unfavorable currency, increased by 64.4%. Adjusted operating companies income margin, excluding unfavorable currency, increased by 5.0 points to 42.2%, reflecting the factors mentioned above, as detailed on Schedule 12.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.
Asia Total Market, PMI Shipment & Market Share Commentaries
2017 Full-Year
The estimated total market in , excluding , decreased by 3.1%
to 1.1 trillion units. PMI's Regional market share, excluding , was
flat at 23.8%.
PMI's total shipment volume of 267.0 billion units was flat, mainly
reflecting: lower cigarette shipment volume in , , ,
- impacted by excise tax-driven price increases in 2017 and an
increase in the prevalence of illicit trade - and , fully
offset by higher heated tobacco unit shipment volume, mainly in
and . The decrease in cigarette shipment volume of
was
mainly due to and , primarily reflecting out-switching to
heated tobacco products, partly offset by and .
The decrease in cigarette shipment volume of
was principally
due to
. The decrease in cigarette shipment volume of
was mainly due to and . The decrease in cigarette
shipment volume of "Others" was mainly due to local, low-price brands in
, and .
PMI's total shipment volume benefited from the favorable net impact of
estimated combustible and heated tobacco unit inventory movements, which
were driven by approximately 8.5 billion units net in , reflecting:
the increasing demand for
, anticipated to further
increase in the first quarter of 2018 following a planned lifting of the
restriction on
device sales; the establishment of
appropriate distributor inventory levels of heated tobacco units, given
the current high dependence on a single manufacturing center; and the
transition from air freight to sea freight of heated tobacco units,
largely completed in the fourth quarter of 2017. Excluding the impact of
total estimated net inventory movements, PMI's total shipment volume
decreased by 3.1%.
2017 Fourth-Quarter
PMI's total shipment volume increased by 11.8% to 75.3 billion units,
principally reflecting: higher heated tobacco unit shipment volume,
mainly in and , and higher cigarette shipment volume in
and , partly offset by lower cigarette shipment
volume in and . Cigarette shipment volume of
was flat, with growth in and offset by
declines in and , principally reflecting out-switching to
heated tobacco products
The decrease in cigarette shipment
volume of
was principally due to . The decrease in
cigarette shipment volume of
was principally due to
and . The decrease in cigarette shipment volume of "Others"
was mainly due to low-price brands in and .
PMI's total shipment volume benefited from the favorable net impact of
estimated combustible and heated tobacco unit inventory movements, which
were driven by approximately 5.0 billion units in , reflecting the
same dynamics as for the full year. Excluding the impact of total
estimated net inventory movements, PMI's total shipment volume increased
by 4.7%.
Key Market Commentaries
In
, estimated cigarette industry size, PMI cigarette
shipment volume, cigarette market share and segmentation performance are
shown in the tables below.
For the full year, the estimated total cigarette market decreased by 2.6%, reflecting a soft economic environment and the impact of above-inflation excise tax-driven price increases. The decrease in PMI's shipments was mainly due to the lower total market and lower cigarette market share, notably due to a decline of , reflecting the impact of price increases, partly offset by a growth of , driven by the variant .Sampoerna UDji Sam SoeMagnum Mild
In the quarter, the estimated total cigarette market increased by 1.3%, reflecting a favorable comparison with the fourth quarter of 2016, which declined by 3.1%. The increase in PMI's cigarette shipments was primarily driven by the higher estimated total cigarette market, partly offset by lower cigarette market share, largely reflecting the same dynamics as for the full year.
In
, PMI shipments reflect cigarette and heated tobacco unit
volume. The estimated total market and PMI’s market share reflect total
industry cigarette and heated tobacco unit volume.
For the full year, the estimated total market decreased by 4.2%. PMI's shipment volume increased by 13.1%, excluding the net impact of estimated cigarette and heated tobacco unit distributor inventory movements, driven by higher market share ofHeatSticks.
In the quarter, the estimated total market decreased by 4.1%. PMI's shipment volume increased by 11.9%, excluding the net impact of estimated cigarette and heated tobacco unit distributor inventory movements, driven by higher market share ofHeatSticks.
In
, PMI shipments reflect cigarette and heated tobacco unit
volume. The estimated total market and PMI’s market share reflect total
industry cigarette and heated tobacco unit volume.
For the full year, the estimated total market decreased by 4.1%, or by 3.3% excluding the net impact of estimated cigarette trade inventory movements. The decrease in PMI's shipment volume was due to the lower total market, partly offset by higher market share driven by the May 2017 launch of .HEETS
In the quarter, the estimated total market decreased by 9.1%, or by 3.0% excluding the net impact of estimated cigarette trade inventory movements notably related to inventory movements in the fourth quarter of 2016 ahead of the implementation of graphic health warnings. The increase in PMI's shipment volume mainly reflected higher market share, mainly driven by the same dynamics as for the full year, despite PMI's principal competitors' new product launches.
In the
, estimated cigarette industry size, PMI
cigarette shipment volume and cigarette market share performance are
shown in the table below.
For the full year, the decline of the estimated total cigarette market
of 6.7%, excluding the net impact of estimated trade inventory
movements, was mainly due to the impact of excise tax-driven price
increases. The decline in PMI's cigarette shipment volume was due to the
lower total cigarette market, as well as lower cigarette market share,
particularly of PMI's low and super-low price brands as a result of the
timing of competitors' price increases, which initially widened the
price gaps to PMI's principal competitor's discounted brands, partly
offset by
, which benefited from in-switching from
lower-priced brands.
In the quarter, the estimated total cigarette market increased by 7.8%,
or by 1.1% excluding the net impact of estimated trade inventory
movements regarding an anticipated
price increase in
January 2018. The increase in PMI's cigarette shipment volume reflected
the higher total cigarette market, as well as higher cigarette market
share, particularly of
, which benefited from
in-switching from lower-priced brands following significant competitor
price increases in the quarter.
& REGION
2017 Full-Year
Net revenues, excluding excise taxes, of $2.9 billion increased by 3.5%.
Excluding unfavorable currency of $54 million, net revenues, excluding
excise taxes, increased by 5.4%, primarily reflecting a favorable
pricing variance of $307 million across the Region, notably ,
and , partly offset by unfavorable volume/mix of $154
million, notably due to , , and .
Operating companies income of $1.0 billion increased by 6.8%. Excluding
unfavorable currency of $70 million, operating companies income
increased by 14.3%, primarily reflecting a favorable pricing variance,
partly offset by unfavorable volume/mix of $152 million, notably due to
, , and .
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 16. Adjusted operating companies income, excluding unfavorable currency, increased by 14.3%. Adjusted operating companies income margin, excluding unfavorable currency, increased by 2.8 points to 35.8%, principally driven by the factors mentioned above, as detailed on Schedule 16.
2017 Fourth-Quarter
Net revenues, excluding excise taxes, of $831 million increased by 5.9%.
Excluding favorable currency of $2 million, net revenues, excluding
excise taxes, increased by 5.6%, primarily reflecting a favorable
pricing variance of $83 million across the Region, notably ,
and , partly offset by unfavorable volume/mix of $39
million, mainly due to and , partly offset by .
Operating companies income of $293 million increased by 12.3%. Excluding
unfavorable currency of $10 million, operating companies income
increased by 16.1%, primarily reflecting a favorable pricing variance,
partly offset by unfavorable volume/mix of $36 million, mainly due to
and , partly offset by .
Adjusted operating companies income and margin are shown in the table below and detailed on Schedule 12. Adjusted operating companies income, excluding unfavorable currency, increased by 16.1%. Adjusted operating companies income margin, excluding unfavorable currency, increased by 3.4 points to 36.6%, principally driven by the factors mentioned above, as detailed on Schedule 12.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.
& Canada Total Market, PMI
Shipment & Market Share Commentaries
2017 Full-Year
The estimated total market in & decreased by 3.8%
to 213.0 billion units. PMI's Regional market share decreased by 0.1
point to 39.6%.
PMI's total shipment volume decreased by 4.2% to 84.3 billion units,
mainly due to lower cigarette shipment volume in , ,
, and . The decrease in cigarette shipment volume
of
was mainly due to and . The decrease
in cigarette shipment volume of
was mainly due to
. The increase in cigarette shipment volume of
was
driven by , , and , partly offset by
. The decrease in cigarette shipment volume of "Others" was
principally due to mainly local brands in , ,
and , largely reflecting successful brand portfolio
consolidation, and .
2017 Fourth-Quarter
PMI's total shipment volume decreased by 3.6% to 22.9 billion units,
mainly due to , and , partly offset by
and . The decrease in cigarette shipment volume of
was
mainly due to and , partly offset by . The
decrease in cigarette shipment volume of
was mainly
due to . The increase in cigarette shipment volume of
was mainly driven by , , and . The
decrease in cigarette shipment volume of "Others" was principally due to
mainly local brands in and , reflecting successful brand
portfolio consolidation.
Key Market Commentaries
In
, estimated cigarette industry size, PMI cigarette
shipment volume and cigarette market share performance are shown in the
table below.
For the full year, the estimated total cigarette market increased by
0.2%, reflecting higher tax declarations by local manufacturers, as well
as a favorable comparison to the full year 2016, which declined by 11.6%
mainly due to the impact of tax-driven price increases. The decrease in
PMI's cigarette shipment volume was mainly due to lower cigarette market
share, reflecting the growth of the low price segment, where local
manufacturers are exempt from paying minimum excise tax, resulting in
widened price gaps with premium
and mid-price
, partly offset by low-price
that
benefited from successful brand portfolio consolidation of a low-price
brand in "Others."
In the quarter, the estimated total cigarette market decreased by 2.5%, mainly due to the impact of excise-tax driven price increases. The decrease in PMI's cigarette shipment volume was mainly due to the lower total market and lower cigarette market share, largely reflecting the same dynamics as for the full year.
In
, estimated industry size, PMI shipment volume and
market share performance, shown in the table below, include cigarettes
and PMI's heated tobacco units.
*Includes heated tobacco units.
For the full year, the estimated total market decreased by 6.3%, mainly due to the impact of price increases. The decrease in PMI's shipment volume mainly reflected the lower total market, as well as lower cigarette market share, unfavorably impacted by estimated net trade inventory movements.
In the quarter, the estimated total market decreased by 2.6%, mainly reflecting the same dynamics as for the full year. The decrease in PMI's shipment volume and market share reflected the impact of estimated trade inventory movements.
In
, estimated cigarette industry size, PMI cigarette
shipment volume and cigarette market share performance are shown in the
table below.
For the full year, the estimated total cigarette market decreased by 1.1%, or increased by 1.2% excluding the net impact of estimated trade inventory movements. The decrease in PMI's cigarette shipment volume mainly reflected the lower total cigarette market, as well as lower cigarette market share. The decrease of PMI's cigarette market share largely reflected the net impact of the estimated trade inventory movements, as well as lower share of , impacted by competitive pressure in the low price segment.Delicados
In the quarter, the estimated total cigarette market increased by 4.5%, or by 3.1% excluding the net impact of estimated trade inventory movements. The increase in PMI's cigarette shipment volume mainly reflected the higher total cigarette market. The decrease of PMI's cigarette market share largely reflected the same dynamics as for the full year.
: Who We Are
We are a leading international tobacco company engaged in the
manufacture and sale of cigarettes and other nicotine-containing
products in markets outside . We’re building
our future on smoke-free products that are a much better consumer choice
than continuing to smoke cigarettes. Through multidisciplinary
capabilities in product development, state-of-the-art facilities and
scientific substantiation, we aim to ensure that our smoke-free products
meet adult consumer preferences and rigorous regulatory requirements.
Our vision is that these products ultimately replace cigarettes to the
benefit of adult smokers, society, our company and our shareholders. For
more information, see
and
.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and other forward-looking statements. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.
PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; litigation related to tobacco use; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost and quality of tobacco and other agricultural products and raw materials; and the integrity of its information systems. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent.
PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended September 30, 2017. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.
Investor Relations:
:
+1 (917) 663 2233
Lausanne: +41 (0)58 242 4666
or
Media:
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View source version on businesswire.com:http://www.businesswire.com/news/home/20180208005598/en/
Source:
- Reported diluted earnings per share of , down by or 13.4%
versus in 2016, including the unfavorable impact of tax items of
per share primarily related to the implementation of the Tax
Cuts and Jobs Act, as detailed in the attached Schedule 17
$3.88 $0.60 $4.48 $0.84 - Excluding unfavorable currency of , and the aforementioned tax
items, adjusted diluted earnings per share of , up by or
10.0% versus in 2016, as detailed in the attached Schedule 17
$0.21 $4.93 $0.45 $4.48 - Cigarette and heated tobacco unit shipment volume of 798.2 billion, down by 2.7%
- International market share, excluding and ,
down by 0.1 point to 28.0%
China the United States - Reported net revenues of , up by 4.2%
$78.1 billion - Net revenues, excluding excise taxes, of , up by 7.7%
$28.7 billion - Excluding unfavorable currency of , net revenues,
excluding excise taxes, up by 9.4% as detailed in the attached
Schedule 14
$437 million
- Excluding unfavorable currency of , net revenues,
excluding excise taxes, up by 9.4% as detailed in the attached
Schedule 14
- Reported operating income of , up by 6.4%
$11.5 billion - Operating companies income of , up by 6.0%
$11.8 billion - Excluding unfavorable currency of , operating
companies income up by 7.4% as detailed in the attached Schedule 14
$155 million
- Excluding unfavorable currency of , operating
companies income up by 7.4% as detailed in the attached Schedule 14
- Adjusted operating companies income, reflecting the items detailed in
the attached Schedule 16, of , up by 6.0%
$11.8 billion - Excluding unfavorable currency of , adjusted operating
companies income up by 7.4% as detailed in the attached Schedule 16
$155 million
- Excluding unfavorable currency of , adjusted operating
companies income up by 7.4% as detailed in the attached Schedule 16
- Regular quarterly dividend increase of 2.9% to an annualized rate of
per common share
$4.28
- Reported diluted earnings per share of , down by or 60.0%
versus in 2016, including the unfavorable impact of tax items of
per share primarily related to the implementation of the Tax
Cuts and Jobs Act, as detailed in the attached Schedule 13
$0.44 $0.66 $1.10 $0.88 - Excluding favorable currency of , and the aforementioned tax
items, adjusted diluted earnings per share of , up by or
19.1% versus in 2016 as detailed in the attached Schedule 13
$0.01 $1.31 $0.21 $1.10 - Cigarette and heated tobacco unit shipment volume of 212.1 billion, up by 3.8%
- Reported net revenues of , up by 12.5%
$21.6 billion - Net revenues, excluding excise taxes, of , up by 19.0%
$8.3 billion - Excluding favorable currency of , net revenues,
excluding excise taxes, up by 18.8% as detailed in the attached
Schedule 10
$14 million
- Excluding favorable currency of , net revenues,
excluding excise taxes, up by 18.8% as detailed in the attached
Schedule 10
- Reported operating income of , up by 27.0%
$3.3 billion - Operating companies income of , up by 25.5%
$3.4 billion - Excluding favorable currency of , operating companies
income up by 18.2% as detailed in the attached Schedule 10
$196 million
- Excluding favorable currency of , operating companies
income up by 18.2% as detailed in the attached Schedule 10
- Adjusted operating companies income, reflecting the items detailed in
the attached Schedule 12, of , up by 25.5%
$3.4 billion - Excluding favorable currency of , adjusted operating
companies income up by 18.2% as detailed in the attached Schedule
12
$196 million
- Excluding favorable currency of , adjusted operating
companies income up by 18.2% as detailed in the attached Schedule
12
- Reported diluted earnings per share forecast to be in a range of
to , at prevailing exchange rates, representing a projected
increase of approximately 34% to 38% versus reported diluted earnings
per share of in 2017.
$5.20 $5.35 $3.88 - Excluding a favorable currency impact, at prevailing exchange
rates, of approximately , the forecast range represents a
projected increase of approximately 7% to 10% versus adjusted
diluted earnings per share of in 2017 as detailed in the
attached Schedule 17.
$0.16 $4.72
- Excluding a favorable currency impact, at prevailing exchange
rates, of approximately , the forecast range represents a
projected increase of approximately 7% to 10% versus adjusted
diluted earnings per share of in 2017 as detailed in the
attached Schedule 17.
- This forecast assumes:
- Net revenue growth, excluding excise taxes, of over 8.0%, excluding currency;
- Operating cash flow of over ;
$9.0 billion - Capital expenditures of approximately ; and
$1.7 billion - No share repurchases.
- This forecast excludes the impact of any future acquisitions, unanticipated asset impairment and exit cost charges, future changes in currency exchange rates, further developments related to the Tax Cuts and Jobs Act as discussed below, and any unusual events. Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.
- A reduction of the federal corporate tax rate from 35% to 21%; and
U.S. - The requirement to pay a one-time transition tax on accumulated foreign earnings, including 2017 earnings ("transition tax").
- A provisional charge of , which represents the transition
tax of , net of a reversal of of previously
recorded deferred tax liabilities on part of the accumulated foreign
earnings, and other items of ; and
$1.4 billion $2.2 billion $0.7 billion $0.1 billion - Re-measurement of deferred tax assets and liabilities using a
rate of 21%, which, under the Act, is expected to be in place when
such deferred assets and liabilities reverse in the future. In
connection with this re-measurement, we recorded a provisional charge
of .
U.S. $0.2 billion
- “PMI” refers to and its subsidiaries.
Trademarks and service marks that are the registered property of, or
licensed by, the subsidiaries of PMI, are italicized.
Philip Morris International Inc. - Comparisons are made to the same prior-year period unless otherwise stated.
- Unless otherwise stated, references to total industry, total market, PMI volume and PMI market share performance reflect cigarettes and heated tobacco units.
- References to total international market, defined as worldwide
cigarette and heated tobacco unit volume excluding ,
total industry, total market and market shares are PMI estimates for
tax-paid products based on the latest available data from a number of
internal and external sources and may, in defined instances, exclude
and/or PMI's duty free business.
the United States the People's Republic of China - "Combustible products" is the term PMI uses to refer to cigarettes and OTP, combined.
- "OTP" is defined as other tobacco products, primarily roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos, and does not include reduced-risk products.
- "Total shipment volume" is defined as the combined total of cigarette shipment volume and heated tobacco unit shipment volume.
- "EEMA" is defined as , & and includes
PMI's international duty free business.
Eastern Europe Middle East Africa - "" is defined as , , , and
.
North Africa Algeria Egypt Libya Morocco Tunisia
- Net revenues, excluding excise taxes, related to combustible products refer to the operating revenues generated from the sale of these products, net of sales and promotion incentives.
- "Operating Companies Income," or "OCI," is defined as operating income, excluding general corporate expenses and the amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. Management evaluates business segment performance and allocates resources based on OCI.
- “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization, excluding asset impairment and exit costs, and unusual items.
- "Net debt" is defined as total debt, less cash and cash equivalents.
- Management reviews OCI, OCI margins, operating cash flow and earnings per share, or “EPS,” on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items.
- Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.
- Non-GAAP measures used in this release should neither be considered in
isolation nor as a substitute for the financial measures prepared in
accordance with GAAP. For a reconciliation of non-GAAP measures
to the most directly comparable GAAP measures, see the relevant
schedules provided with this press release.
U.S.
- "Reduced-risk products," or "RRPs," is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continued smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. Because PMI's RRPs do not burn tobacco, they produce far lower quantities of harmful and potentially harmful compounds than found in cigarette smoke.
- "Heated tobacco units" is the term PMI uses to refer to heated tobacco
consumables, which include the company's
,
and
, defined collectively as
,
as well as
and
.HEETSHEETS
Marlboro HEETS FROMMARLBORO HEETSMarlboro HeatSticksHeatSticksParliament - Net revenues, excluding excise taxes, related to RRPs represent the sale of heated tobacco units, devices and related accessories, and other nicotine-containing products, primarily e-vapor products, net of sales and promotion incentives.IQOS
- the EU, notably reflecting lower cigarette shipment volume in ,
and , partly offset by higher heated tobacco unit shipment
volume;
Greece Italy Spain - EEMA, notably reflecting lower cigarette shipment volume in ,
- where PMI's cigarette shipment volume declined by
35.8%, impacted by the new excise tax implemented in that
resulted in the doubling of retail prices - and ; partly offset
by higher cigarette shipment volume in , notably ,
and higher heated tobacco unit shipment volume;
Russia Saudi Arabia Ukraine North Africa Algeria June 2017 - , notably reflecting lower cigarette shipment volume in ,
, , - impacted by excise tax-driven price increases
and an increase in the prevalence of illicit trade - and ; fully offset by higher heated tobacco unit shipment
volume, mainly in and ; and
Asia Indonesia Japan Korea Pakistan the Philippines Japan Korea - & , notably reflecting lower cigarette shipment
volume in , , , and .
Latin America Canada Argentina Brazil Canada Colombia Mexico
- the EU, notably reflecting higher cigarette shipment volume in ,
and , partly offset by lower cigarette shipment volume
in ; and
France Germany Portugal Spain - Higher heated tobacco unit shipment volume across all Regions, notably
in driven by and .
Asia Japan Korea
- EEMA, notably , as well as where PMI's cigarette
shipment volume declined by 60.3%, reflecting the impact of the
aforementioned new excise tax, partly offset by , notably
, and ;
Russia Saudi Arabia North Africa Algeria Turkey - , notably and , partly offset by ; and
Asia Japan Korea the Philippines - & , notably , and , partly
offset by and .
Latin America Canada Argentina Brazil Colombia Mexico Venezuela
PMI Shipment Volume by Region | Fourth-Quarter | Full-Year | |||||||||||||||||
| (million units) | |||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Cigarettes | |||||||||||||||||||
| 45,881 | 45,193 | 1.5 | % | 187,293 | 193,586 | (3.3 | )% | ||||||||||||
| EEMA | 66,332 | 67,763 | (2.1 | )% | 256,157 | 271,393 | (5.6 | )% | |||||||||||
| 61,234 | 63,815 | (4.0 | )% | 234,253 | 260,029 | (9.9 | )% | ||||||||||||
| & | 22,922 | 23,794 | (3.7 | )% | 84,223 | 87,938 | (4.2 | )% | |||||||||||
| Total PMI | 196,369 | 200,565 | (2.1 | )% | 761,926 | 812,946 | (6.3 | )% | |||||||||||
Heated Tobacco Units | |||||||||||||||||||
| 849 | 122 | +100.0% | 1,889 | 224 | +100.0% | ||||||||||||||
| EEMA | 820 | 63 | +100.0% | 1,581 | 100 | +100.0% | |||||||||||||
| 14,032 | 3,510 | +100.0% | 32,729 | 7,070 | +100.0% | ||||||||||||||
| & | 15 | — | — | % | 27 | — | — | % | |||||||||||
| Total PMI | 15,716 | 3,695 | +100.0% | 36,226 | 7,394 | +100.0% | |||||||||||||
Cigarettes and Heated Tobacco Units | |||||||||||||||||||
| 46,730 | 45,315 | 3.1 | % | 189,182 | 193,810 | (2.4 | )% | ||||||||||||
| EEMA | 67,152 | 67,826 | (1.0 | )% | 257,738 | 271,493 | (5.1 | )% | |||||||||||
| 75,266 | 67,325 | 11.8 | % | 266,982 | 267,099 | — | % | ||||||||||||
| & | 22,937 | 23,794 | (3.6 | )% | 84,250 | 87,938 | (4.2 | )% | |||||||||||
| Total PMI | 212,085 | 204,260 | 3.8 | % | 798,152 | 820,340 | (2.7 | )% | |||||||||||
PMI Shipment Volume by Brand | Fourth-Quarter | Full-Year | |||||||||||||||||
| (million units) | |||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Cigarettes | |||||||||||||||||||
| 70,251 | 70,295 | (0.1 | )% | 270,366 | 281,720 | (4.0 | )% | ||||||||||||
| L&M | 21,726 | 23,177 | (6.3 | )% | 90,817 | 96,770 | (6.2 | )% | |||||||||||
| Chesterfield | 14,764 | 12,088 | 22.1 | % | 55,075 | 46,291 | 19.0 | % | |||||||||||
| Philip Morris | 12,389 | 9,069 | 36.6 | % | 48,522 | 35,914 | 35.1 | % | |||||||||||
| 12,243 | 11,424 | 7.2 | % | 43,965 | 45,671 | (3.7 | )% | ||||||||||||
| 9,312 | 11,775 | (20.9 | )% | 37,987 | 44,567 | (14.8 | )% | ||||||||||||
| Lark | 5,838 | 6,540 | (10.7 | )% | 24,373 | 27,571 | (11.6 | )% | |||||||||||
| Others | 49,846 | 56,197 | (11.3 | )% | 190,821 | 234,442 | (18.6 | )% | |||||||||||
| Total Cigarettes | 196,369 | 200,565 | (2.1 | )% | 761,926 | 812,946 | (6.3 | )% | |||||||||||
| Heated Tobacco Units | 15,716 | 3,695 | +100.0% | 36,226 | 7,394 | +100.0% | |||||||||||||
| Total PMI | 212,085 | 204,260 | 3.8 | % | 798,152 | 820,340 | (2.7 | )% | |||||||||||
PMI Net Revenues(Excluding
Excise Taxes) | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
Combustible Products | |||||||||||||||||||||||||||||
| $ | 2,140 | $ | 1,919 | 11.5 | % | 4.7 | % | $ | 8,048 | $ | 8,105 | (0.7 | )% | (1.2 | )% | ||||||||||||||
| EEMA | 1,680 | 1,792 | (6.3 | )% | (5.1 | )% | 6,550 | 6,991 | (6.3 | )% | (2.1 | )% | |||||||||||||||||
| 2,003 | 2,133 | (6.1 | )% | (4.4 | )% | 7,572 | 8,015 | (5.5 | )% | (5.0 | )% | ||||||||||||||||||
| & | 828 | 785 | 5.5 | % | 5.3 | % | 2,937 | 2,841 | 3.4 | % | 5.3 | % | |||||||||||||||||
| Total PMI | $ | 6,651 | $ | 6,628 | 0.3 | % | (0.8 | )% | $ | 25,107 | $ | 25,952 | (3.3 | )% | (1.9 | )% | |||||||||||||
RRPs | |||||||||||||||||||||||||||||
| $ | 124 | $ | 25 | +100% | +100% | $ | 269 | $ | 57 | +100% | +100% | ||||||||||||||||||
| EEMA | 85 | 6 | +100% | +100% | 149 | 9 | +100% | +100% | |||||||||||||||||||||
| 1,432 | 312 | +100% | +100% | 3,218 | 666 | +100% | +100% | ||||||||||||||||||||||
| & | 3 | — | +100% | +100% | 4 | 1 | +100% | +100% | |||||||||||||||||||||
| Total PMI | $ | 1,643 | $ | 343 | +100% | +100% | $ | 3,640 | $ | 733 | +100% | +100% | |||||||||||||||||
Combustible Products and RRPs | |||||||||||||||||||||||||||||
| $ | 2,264 | $ | 1,944 | 16.5 | % | 9.3 | % | $ | 8,318 | $ | 8,162 | 1.9 | % | 1.4 | % | ||||||||||||||
| EEMA | 1,764 | 1,798 | (1.9 | )% | (0.6 | )% | 6,699 | 7,000 | (4.3 | )% | (0.1 | )% | |||||||||||||||||
| 3,435 | 2,444 | 40.5 | % | 44.8 | % | 10,790 | 8,681 | 24.3 | % | 25.9 | % | ||||||||||||||||||
| & | 831 | 785 | 5.9 | % | 5.6 | % | 2,941 | 2,842 | 3.5 | % | 5.4 | % | |||||||||||||||||
| Total PMI | $ | 8,294 | $ | 6,971 | 19.0 | % | 18.8 | % | $ | 28,748 | $ | 26,685 | 7.7 | % | 9.4 | % | |||||||||||||
PMI OCI | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
| $ | 992 | $ | 898 | 10.5 | % | 6.1 | % | $ | 3,775 | $ | 3,994 | (5.5 | )% | (4.4 | )% | ||||||||||||||
| EEMA | 700 | 627 | 11.6 | % | (30.5 | )% | 2,888 | 3,016 | (4.2 | )% | (6.9 | )% | |||||||||||||||||
| 1,396 | 908 | 53.7 | % | 64.4 | % | 4,149 | 3,196 | 29.8 | % | 33.7 | % | ||||||||||||||||||
| & | 293 | 261 | 12.3 | % | 16.1 | % | 1,002 | 938 | 6.8 | % | 14.3 | % | |||||||||||||||||
| Total PMI | $ | 3,381 | $ | 2,694 | 25.5 | % | 18.2 | % | $ | 11,814 | $ | 11,144 | 6.0 | % | 7.4 | % | |||||||||||||
PMI OCI | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
| OCI | $ | 3,381 | $ | 2,694 | 25.5 | % | 18.2 | % | $ | 11,814 | $ | 11,144 | 6.0 | % | 7.4 | % | |||||||||||||
Asset impairment & exit
costs | — | — | — | — | |||||||||||||||||||||||||
| Adjusted OCI | $ | 3,381 | $ | 2,694 | 25.5 | % | 18.2 | % | $ | 11,814 | $ | 11,144 | 6.0 | % | 7.4 | % | |||||||||||||
| Adjusted OCI Margin* | 40.8 | % | 38.6 | % | 2.2 | (0.1 | ) | 41.1 | % | 41.8 | % | (0.7 | ) | (0.8 | ) | ||||||||||||||
| |||||||||||||||||||||||||||||
EU OCI | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
| OCI | $ | 992 | $ | 898 | 10.5 | % | 6.1 | % | $ | 3,775 | $ | 3,994 | (5.5 | )% | (4.4 | )% | |||||||||||||
Asset impairment & exit
costs | — | — | — | — | |||||||||||||||||||||||||
| Adjusted OCI | $ | 992 | $ | 898 | 10.5 | % | 6.1 | % | $ | 3,775 | $ | 3,994 | (5.5 | )% | (4.4 | )% | |||||||||||||
| Adjusted OCI Margin* | 43.8 | % | 46.2 | % | (2.4 | ) | (1.4 | ) | 45.4 | % | 48.9 | % | (3.5 | ) | (2.7 | ) | |||||||||||||
| |||||||||||||||||||||||||||||
EU PMI Shipment Volume by Brand | Fourth-Quarter | Full-Year | ||||||||||||||||||||||||
| (million units) | ||||||||||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||
Cigarettes | ||||||||||||||||||||||||||
| 23,317 | 22,663 | 2.9 | % | 93,088 | 96,245 | (3.3 | )% | |||||||||||||||||||
| L&M | 8,269 | 8,063 | 2.6 | % | 34,261 | 34,691 | (1.2 | )% | ||||||||||||||||||
| Chesterfield | 6,818 | 7,029 | (3.0 | )% | 29,087 | 30,140 | (3.5 | )% | ||||||||||||||||||
| Philip Morris | 3,523 | 3,668 | (4.0 | )% | 15,158 | 16,290 | (6.9 | )% | ||||||||||||||||||
| Others | 3,954 | 3,770 | 4.9 | % | 15,699 | 16,220 | (3.2 | )% | ||||||||||||||||||
| Total Cigarettes | 45,881 | 45,193 | 1.5 | % | 187,293 | 193,586 | (3.3 | )% | ||||||||||||||||||
| Heated Tobacco Units | 849 | 122 | +100.0% | 1,889 | 224 | +100.0% | ||||||||||||||||||||
| Total EU | 46,730 | 45,315 | 3.1 | % | 189,182 | 193,810 | (2.4 | )% | ||||||||||||||||||
EU Market Shares by Brand | Fourth-Quarter | Full-Year | ||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| 2017 | 2016 | p.p. | 2017 | 2016 | p.p. | |||||||||||||||||||||
| 19.2 | % | 19.0 | % | 0.2 | 18.8 | % | 19.0 | % | (0.2 | ) | ||||||||||||||||
| L&M | 6.9 | % | 6.9 | % | — | 6.9 | % | 6.9 | % | — | ||||||||||||||||
| Chesterfield | 5.9 | % | 5.9 | % | — | 6.0 | % | 5.9 | % | 0.1 | ||||||||||||||||
| Philip Morris | 3.0 | % | 3.1 | % | (0.1 | ) | 3.1 | % | 3.2 | % | (0.1 | ) | ||||||||||||||
| HEETS | 0.6 | % | 0.1 | % | 0.5 | 0.3 | % | — | % | 0.3 | ||||||||||||||||
| Others | 3.3 | % | 3.2 | % | 0.1 | 3.2 | % | 3.3 | % | (0.1 | ) | |||||||||||||||
| Total EU | 38.9 | % | 38.2 | % | 0.7 | 38.3 | % | 38.3 | % | — | ||||||||||||||||
France Key Market Data | Fourth-Quarter | Full-Year | ||||||||||||||||||
| Change | Change | |||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | |||||||||||||||
| Total Market (billion units) | 10.4 | 10.5 | (1.0 | )% | 44.4 | 44.9 | (1.2 | )% | ||||||||||||
| PMI Shipments (million units) | 4,585 | 4,375 | 4.8 | % | 19,264 | 19,247 | 0.1 | % | ||||||||||||
| PMI Market Share | ||||||||||||||||||||
| 27.7 | % | 26.9 | % | 0.8 | 27.1 | % | 26.4 | % | 0.7 | |||||||||||
| Philip Morris | 10.6 | % | 10.4 | % | 0.2 | 10.3 | % | 10.2 | % | 0.1 | ||||||||||
| Chesterfield | 2.9 | % | 3.1 | % | (0.2 | ) | 3.0 | % | 3.1 | % | (0.1 | ) | ||||||||
| Others* | 2.8 | % | 2.9 | % | (0.1 | ) | 2.8 | % | 2.7 | % | 0.1 | |||||||||
| Total | 44.0 | % | 43.3 | % | 0.7 | 43.2 | % | 42.4 | % | 0.8 | ||||||||||
| ||||||||||||||||||||
Germany Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 19.2 | 18.4 | 4.2 | % | 76.9 | 78.1 | (1.6 | )% | |||||||||||
| PMI Shipments (million units) | 7,560 | 6,890 | 9.7 | % | 28,575 | 28,958 | (1.3 | )% | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 24.4 | % | 22.9 | % | 1.5 | 22.7 | % | 22.5 | % | 0.2 | ||||||||||
| L&M | 12.0 | % | 11.5 | % | 0.5 | 11.5 | % | 11.6 | % | (0.1 | ) | ||||||||
| Chesterfield | 1.4 | % | 1.6 | % | (0.2 | ) | 1.5 | % | 1.6 | % | (0.1 | ) | |||||||
| Others* | 1.6 | % | 1.4 | % | 0.2 | 1.5 | % | 1.4 | % | 0.1 | |||||||||
| Total | 39.4 | % | 37.4 | % | 2.0 | 37.2 | % | 37.1 | % | 0.1 | |||||||||
Italy Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 16.7 | 16.6 | 0.7 | % | 69.8 | 72.1 | (3.2 | )% | |||||||||||
| PMI Shipments (million units) | 9,029 | 8,830 | 2.2 | % | 36,767 | 38,744 | (5.1 | )% | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 23.8 | % | 23.6 | % | 0.2 | 23.9 | % | 24.3 | % | (0.4 | ) | |||||||||
| Chesterfield | 11.4 | % | 11.3 | % | 0.1 | 11.3 | % | 11.5 | % | (0.2 | ) | ||||||||
| Philip Morris | 7.6 | % | 8.2 | % | (0.6 | ) | 7.7 | % | 8.5 | % | (0.8 | ) | |||||||
| HEETS | 1.2 | % | 0.3 | % | 0.9 | 0.7 | % | 0.1 | % | 0.6 | |||||||||
| Others | 8.6 | % | 8.2 | % | 0.4 | 8.6 | % | 8.1 | % | 0.5 | |||||||||
| Total | 52.6 | % | 51.6 | % | 1.0 | 52.2 | % | 52.5 | % | (0.3 | ) | ||||||||
Poland Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 9.4 | 9.0 | 4.8 | % | 41.7 | 41.3 | 0.9 | % | |||||||||||
| PMI Shipments (million units) | 4,089 | 3,970 | 3.0 | % | 17,784 | 17,485 | 1.7 | % | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 11.2 | % | 12.6 | % | (1.4 | ) | 10.7 | % | 11.6 | % | (0.9 | ) | ||||||||
| L&M | 18.6 | % | 19.6 | % | (1.0 | ) | 18.4 | % | 18.5 | % | (0.1 | ) | |||||||
| Chesterfield | 10.0 | % | 9.3 | % | 0.7 | 10.4 | % | 9.1 | % | 1.3 | |||||||||
| HEETS | 0.6 | % | — | % | 0.6 | 0.2 | % | — | % | 0.2 | |||||||||
| Others | 3.0 | % | 2.7 | % | 0.3 | 3.0 | % | 3.1 | % | (0.1 | ) | ||||||||
| Total | 43.4 | % | 44.2 | % | (0.8 | ) | 42.7 | % | 42.3 | % | 0.4 | ||||||||
Spain Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 10.9 | 11.4 | (4.4 | )% | 45.0 | 46.7 | (3.5 | )% | |||||||||||
| PMI Shipments (million units) | 3,325 | 3,734 | (10.9 | )% | 14,456 | 16,374 | (11.7 | )% | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 16.2 | % | 17.7 | % | (1.5 | ) | 16.5 | % | 18.0 | % | (1.5 | ) | ||||||||
| L&M | 5.3 | % | 5.3 | % | — | 5.3 | % | 5.4 | % | (0.1 | ) | ||||||||
| Chesterfield | 8.6 | % | 8.6 | % | — | 8.6 | % | 8.6 | % | — | |||||||||
| Others* | 1.8 | % | 1.8 | % | — | 1.9 | % | 1.9 | % | — | |||||||||
| Total | 31.9 | % | 33.4 | % | (1.5 | ) | 32.3 | % | 33.9 | % | (1.6 | ) | |||||||
EEMA OCI | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
| OCI | $ | 700 | $ | 627 | 11.6 | % | (30.5 | )% | $ | 2,888 | $ | 3,016 | (4.2 | )% | (6.9 | )% | |||||||||||||
Asset impairment & exit
costs | — | — | — | — | |||||||||||||||||||||||||
| Adjusted OCI | $ | 700 | $ | 627 | 11.6 | % | (30.5 | )% | $ | 2,888 | $ | 3,016 | (4.2 | )% | (6.9 | )% | |||||||||||||
| Adjusted OCI Margin* | 39.7 | % | 34.9 | % | 4.8 | (10.5 | ) | 43.1 | % | 43.1 | % | — | (2.9 | ) | |||||||||||||||
EEMA PMI Shipment Volume by Brand | Fourth-Quarter | Full-Year | |||||||||||||||||
| (million units) | |||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Cigarettes | |||||||||||||||||||
| 18,314 | 18,813 | (2.7 | )% | 70,122 | 73,818 | (5.0 | )% | ||||||||||||
| L&M | 11,004 | 12,672 | (13.2 | )% | 46,923 | 52,183 | (10.1 | )% | |||||||||||
| 8,886 | 11,243 | (21.0 | )% | 36,336 | 42,553 | (14.6 | )% | ||||||||||||
| 9,775 | 8,439 | 15.8 | % | 33,299 | 33,940 | (1.9 | )% | ||||||||||||
| Philip Morris | 5,273 | 1,235 | +100.0% | 19,086 | 2,058 | +100.0% | |||||||||||||
| Others | 13,080 | 15,361 | (14.8 | )% | 50,391 | 66,841 | (24.6 | )% | |||||||||||
| Total Cigarettes | 66,332 | 67,763 | (2.1 | )% | 256,157 | 271,393 | (5.6 | )% | |||||||||||
| Heated Tobacco Units | 820 | 63 | +100.0% | 1,581 | 100 | +100.0% | |||||||||||||
| Total EEMA | 67,152 | 67,826 | (1.0 | )% | 257,738 | 271,493 | (5.1 | )% | |||||||||||
North Africa Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Cigarette Market (billion units) | 38.7 | 35.7 | 8.3 | % | 144.9 | 142.3 | 1.9 | % | |||||||||||
| PMI Cigarette Shipments (million units) | 9,131 | 8,141 | 12.2 | % | 35,085 | 34,035 | 3.1 | % | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 9.9 | % | 8.7 | % | 1.2 | 9.3 | % | 8.3 | % | 1.0 | ||||||||||
| L&M | 11.3 | % | 11.5 | % | (0.2 | ) | 11.8 | % | 12.2 | % | (0.4 | ) | |||||||
| Others | 2.9 | % | 2.4 | % | 0.5 | 2.9 | % | 2.7 | % | 0.2 | |||||||||
| Total | 24.1 | % | 22.6 | % | 1.5 | 24.0 | % | 23.2 | % | 0.8 | |||||||||
Russia Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 66.5 | 71.0 | (6.4 | )% | 260.0 | 280.0 | (7.2 | )% | |||||||||||
| PMI Shipments (million units) | 19,052 | 20,574 | (7.4 | )% | 72,417 | 79,706 | (9.1 | )% | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 1.7 | % | 1.3 | % | 0.4 | 1.5 | % | 1.4 | % | 0.1 | ||||||||||
| 3.5 | % | 3.7 | % | (0.2 | ) | 3.5 | % | 3.8 | % | (0.3 | ) | ||||||||
| Bond Street | 8.0 | % | 8.9 | % | (0.9 | ) | 8.6 | % | 8.4 | % | 0.2 | ||||||||
| Philip Morris | 5.6 | % | 0.5 | % | 5.1 | 4.3 | % | 0.2 | % | 4.1 | |||||||||
| Others | 7.9 | % | 12.8 | % | (4.9 | ) | 9.2 | % | 13.4 | % | (4.2 | ) | |||||||
| Total | 26.7 | % | 27.2 | % | (0.5 | ) | 27.1 | % | 27.2 | % | (0.1 | ) | |||||||
Turkey Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Cigarette Market (billion units) | 28.5 | 26.0 | 9.8 | % | 106.2 | 105.5 | 0.7 | % | |||||||||||
| PMI Cigarette Shipments (million units) | 13,555 | 12,074 | 12.3 | % | 49,649 | 49,624 | 0.1 | % | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 10.4 | % | 10.3 | % | 0.1 | 10.2 | % | 10.2 | % | — | ||||||||||
| 11.4 | % | 11.8 | % | (0.4 | ) | 11.5 | % | 11.7 | % | (0.2 | ) | ||||||||
| Lark | 6.9 | % | 7.0 | % | (0.1 | ) | 6.9 | % | 7.4 | % | (0.5 | ) | |||||||
| Others | 14.7 | % | 15.3 | % | (0.6 | ) | 14.7 | % | 15.0 | % | (0.3 | ) | |||||||
| Total | 43.4 | % | 44.4 | % | (1.0 | ) | 43.3 | % | 44.3 | % | (1.0 | ) | |||||||
Ukraine Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 16.4 | 17.1 | (3.8 | )% | 67.1 | 73.1 | (8.2 | )% | |||||||||||
| PMI Shipments (million units) | 4,834 | 4,797 | 0.8 | % | 19,356 | 22,022 | (12.1 | )% | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 3.0 | % | 3.1 | % | (0.1 | ) | 3.0 | % | 3.1 | % | (0.1 | ) | ||||||||
| 3.3 | % | 3.0 | % | 0.3 | 3.2 | % | 2.9 | % | 0.3 | ||||||||||
| Bond Street | 7.7 | % | 9.2 | % | (1.5 | ) | 8.4 | % | 10.0 | % | (1.6 | ) | |||||||
| Philip Morris | 4.0 | % | — | % | 4.0 | 3.1 | % | — | % | 3.1 | |||||||||
| Others | 8.9 | % | 12.4 | % | (3.5 | ) | 9.6 | % | 13.2 | % | (3.6 | ) | |||||||
| Total | 26.9 | % | 27.7 | % | (0.8 | ) | 27.3 | % | 29.2 | % | (1.9 | ) | |||||||
Asia OCI | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
| OCI | $ | 1,396 | $ | 908 | 53.7 | % | 64.4 | % | $ | 4,149 | $ | 3,196 | 29.8 | % | 33.7 | % | |||||||||||||
Asset impairment & exit
costs | — | — | — | — | |||||||||||||||||||||||||
| Adjusted OCI | $ | 1,396 | $ | 908 | 53.7 | % | 64.4 | % | $ | 4,149 | $ | 3,196 | 29.8 | % | 33.7 | % | |||||||||||||
| Adjusted OCI Margin* | 40.6 | % | 37.2 | % | 3.4 | 5.0 | 38.5 | % | 36.8 | % | 1.7 | 2.3 | |||||||||||||||||
| |||||||||||||||||||||||||||||
Asia PMI Shipment Volume by Brand | Fourth-Quarter | Full-Year | |||||||||||||||||
| (million units) | |||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Cigarettes | |||||||||||||||||||
| 19,191 | 19,186 | — | % | 73,446 | 76,463 | (3.9 | )% | ||||||||||||
| Lark | 3,078 | 4,178 | (26.3 | )% | 14,474 | 17,600 | (17.8 | )% | |||||||||||
| 2,096 | 2,608 | (19.6 | )% | 9,224 | 10,142 | (9.1 | )% | ||||||||||||
| Others | 36,869 | 37,843 | (2.6 | )% | 137,109 | 155,824 | (12.0 | )% | |||||||||||
| Total Cigarettes | 61,234 | 63,815 | (4.0 | )% | 234,253 | 260,029 | (9.9 | )% | |||||||||||
| Heated Tobacco Units | 14,032 | 3,510 | +100.0% | 32,729 | 7,070 | +100.0% | |||||||||||||
| Total | 75,266 | 67,325 | 11.8 | % | 266,982 | 267,099 | — | % | |||||||||||
Indonesia Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Cigarette Market (billion units) | 81.5 | 80.5 | 1.3 | % | 307.4 | 315.6 | (2.6 | )% | |||||||||||
| PMI Cigarette Shipments (million units) | 26,903 | 26,732 | 0.6 | % | 101,324 | 105,524 | (4.0 | )% | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| Sampoerna A | 14.3 | % | 14.0 | % | 0.3 | 13.8 | % | 14.0 | % | (0.2 | ) | ||||||||
| Dji Sam Soe | 8.7 | % | 6.4 | % | 2.3 | 7.4 | % | 6.5 | % | 0.9 | |||||||||
| Sampoerna U | 2.6 | % | 5.2 | % | (2.6 | ) | 4.1 | % | 5.2 | % | (1.1 | ) | |||||||
| Others | 7.4 | % | 7.6 | % | (0.2 | ) | 7.7 | % | 7.7 | % | — | ||||||||
| Total | 33.0 | % | 33.2 | % | (0.2 | ) | 33.0 | % | 33.4 | % | (0.4 | ) | |||||||
Indonesia Segmentation Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | p.p. | 2017 | 2016 | p.p. | ||||||||||||||
| Segment % of Total Market | |||||||||||||||||||
| Hand-Rolled Kretek (SKT) | 17.4 | % | 18.2 | % | (0.8 | ) | 17.6 | % | 18.2 | % | (0.6 | ) | |||||||
| Machine-Made Kretek (SKM) | 77.7 | % | 76.3 | % | 1.4 | 77.2 | % | 75.8 | % | 1.4 | |||||||||
| Whites (SPM) | 4.9 | % | 5.5 | % | (0.6 | ) | 5.2 | % | 6.0 | % | (0.8 | ) | |||||||
| Total | 100.0 | % | 100.0 | % | — | 100.0 | % | 100.0 | % | — | |||||||||
| PMI % Share of Segment | |||||||||||||||||||
| Hand-Rolled Kretek (SKT) | 37.5 | % | 37.8 | % | (0.3 | ) | 37.5 | % | 37.3 | % | 0.2 | ||||||||
| Machine-Made Kretek (SKM) | 30.1 | % | 29.0 | % | 1.1 | 29.4 | % | 28.9 | % | 0.5 | |||||||||
| Whites (SPM) | 63.5 | % | 76.3 | % | (12.8 | ) | 70.2 | % | 79.5 | % | (9.3 | ) | |||||||
Japan Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 43.4 | 45.3 | (4.1 | )% | 171.5 | 179.0 | (4.2 | )% | |||||||||||
| PMI Shipments (million units) | |||||||||||||||||||
| Cigarettes | 7,683 | 10,631 | (27.7 | )% | 34,853 | 43,915 | (20.6 | )% | |||||||||||
| Heated Tobacco Units | 13,134 | 3,510 | +100% | 31,291 | 7,069 | +100% | |||||||||||||
| Total | 20,816 | 14,141 | 47.2 | % | 66,144 | 50,985 | 29.7 | % | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 8.1 | % | 10.2 | % | (2.1 | ) | 9.3 | % | 10.6 | % | (1.3 | ) | ||||||||
| HeatSticks | 13.9 | % | 4.9 | % | 9.0 | 10.8 | % | 2.9 | % | 7.9 | |||||||||
| 1.9 | % | 2.2 | % | (0.3 | ) | 2.1 | % | 2.3 | % | (0.2 | ) | ||||||||
| Lark | 8.0 | % | 9.3 | % | (1.3 | ) | 8.6 | % | 9.6 | % | (1.0 | ) | |||||||
| Others | 1.3 | % | 1.7 | % | (0.4 | ) | 1.3 | % | 1.7 | % | (0.4 | ) | |||||||
| Total | 33.2 | % | 28.3 | % | 4.9 | 32.1 | % | 27.1 | % | 5.0 | |||||||||
Korea Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 16.4 | 18.0 | (9.1 | )% | 70.6 | 73.6 | (4.1 | )% | |||||||||||
| PMI Shipments (million units) | |||||||||||||||||||
| Cigarettes | 3,079 | 3,937 | (21.8 | )% | 13,499 | 15,490 | (12.9 | )% | |||||||||||
| Heated Tobacco Units | 898 | — | — | % | 1,438 | — | — | % | |||||||||||
| Total | 3,977 | 3,937 | 1.0 | % | 14,937 | 15,490 | (3.6 | )% | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 8.6 | % | 10.0 | % | (1.4 | ) | 8.7 | % | 9.6 | % | (0.9 | ) | ||||||||
| 7.9 | % | 8.9 | % | (1.0 | ) | 8.0 | % | 7.9 | % | 0.1 | |||||||||
| HEETS | 5.5 | % | — | % | 5.5 | 2.0 | % | — | % | 2.0 | |||||||||
| Virginia S. | 2.0 | % | 2.4 | % | (0.4 | ) | 2.0 | % | 3.0 | % | (1.0 | ) | |||||||
| Others | 0.4 | % | 0.4 | % | — | 0.5 | % | 0.5 | % | — | |||||||||
| Total | 24.4 | % | 21.7 | % | 2.7 | 21.2 | % | 21.0 | % | 0.2 | |||||||||
Philippines Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Cigarette Market (billion units) | 20.7 | 19.2 | 7.8 | % | 74.9 | 79.3 | (5.6 | )% | |||||||||||
| PMI Cigarette Shipments (million units) | 14,315 | 13,053 | 9.7 | % | 50,618 | 56,611 | (10.6 | )% | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 35.6 | % | 29.9 | % | 5.7 | 33.0 | % | 28.4 | % | 4.6 | ||||||||||
| Fortune | 17.9 | % | 20.5 | % | (2.6 | ) | 18.0 | % | 23.4 | % | (5.4 | ) | |||||||
| Jackpot | 5.6 | % | 6.8 | % | (1.2 | ) | 6.1 | % | 7.9 | % | (1.8 | ) | |||||||
| Others | 10.2 | % | 11.0 | % | (0.8 | ) | 10.5 | % | 11.6 | % | (1.1 | ) | |||||||
| Total | 69.3 | % | 68.2 | % | 1.1 | 67.6 | % | 71.3 | % | (3.7 | ) | ||||||||
& Canada OCI | Fourth-Quarter | Full-Year | |||||||||||||||||||||||||||
| (in millions) | Excl. | Excl. | |||||||||||||||||||||||||||
| 2017 | 2016 | Change | Curr. | 2017 | 2016 | Change | Curr. | ||||||||||||||||||||||
| OCI | $ | 293 | $ | 261 | 12.3 | % | 16.1 | % | $ | 1,002 | $ | 938 | 6.8 | % | 14.3 | % | |||||||||||||
Asset impairment & exit
costs | — | — | — | — | |||||||||||||||||||||||||
| Adjusted OCI | $ | 293 | $ | 261 | 12.3 | % | 16.1 | % | $ | 1,002 | $ | 938 | 6.8 | % | 14.3 | % | |||||||||||||
| Adjusted OCI Margin* | 35.3 | % | 33.2 | % | 2.1 | 3.4 | 34.1 | % | 33.0 | % | 1.1 | 2.8 | |||||||||||||||||
| |||||||||||||||||||||||||||||
& Canada PMI Shipment | Fourth-Quarter | Full-Year | |||||||||||||||||
| (million units) | |||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Cigarettes | |||||||||||||||||||
| 9,429 | 9,632 | (2.1 | )% | 33,711 | 35,194 | (4.2 | )% | ||||||||||||
| Philip Morris | 3,335 | 3,912 | (14.8 | )% | 13,320 | 16,463 | (19.1 | )% | |||||||||||
| Chesterfield | 3,317 | 1,565 | +100.0% | 9,852 | 2,626 | +100.0% | |||||||||||||
| Others | 6,841 | 8,685 | (21.2 | )% | 27,340 | 33,655 | (18.8 | )% | |||||||||||
| Total Cigarettes | 22,922 | 23,794 | (3.7 | )% | 84,223 | 87,938 | (4.2 | )% | |||||||||||
| Heated Tobacco Units | 15 | — | — | % | 27 | — | — | % | |||||||||||
| Total & | 22,937 | 23,794 | (3.6 | )% | 84,250 | 87,938 | (4.2 | )% | |||||||||||
Argentina Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Cigarette Market (billion units) | 9.2 | 9.4 | (2.5 | )% | 36.2 | 36.1 | 0.2 | % | |||||||||||
| PMI Cigarette Shipments (million units) | 6,859 | 7,123 | (3.7 | )% | 27,002 | 27,512 | (1.9 | )% | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 19.7 | % | 20.8 | % | (1.1 | ) | 20.0 | % | 22.4 | % | (2.4 | ) | ||||||||
| Chesterfield | 17.2 | % | 11.3 | % | 5.9 | 15.9 | % | 5.5 | % | 10.4 | |||||||||
| Philip Morris | 32.0 | % | 37.3 | % | (5.3 | ) | 33.0 | % | 41.6 | % | (8.6 | ) | |||||||
| Others | 5.7 | % | 6.1 | % | (0.4 | ) | 5.8 | % | 6.8 | % | (1.0 | ) | |||||||
| Total | 74.6 | % | 75.5 | % | (0.9 | ) | 74.7 | % | 76.3 | % | (1.6 | ) | |||||||
Canada Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Market (billion units) | 6.6 | 6.8 | (2.6 | )% | 24.6 | 26.3 | (6.3 | )% | |||||||||||
| PMI Shipments (million units) | 2,477 | 2,584 | (4.1 | )% | 9,259 | 10,049 | (7.9 | )% | |||||||||||
| PMI Market Share | |||||||||||||||||||
| 4.3 | % | 3.8 | % | 0.5 | 4.1 | % | 3.7 | % | 0.4 | ||||||||||
| Canadian Classics | 9.5 | % | 10.3 | % | (0.8 | ) | 9.5 | % | 10.2 | % | (0.7 | ) | |||||||
| Next | 11.6 | % | 11.6 | % | — | 11.5 | % | 11.3 | % | 0.2 | |||||||||
| Others* | 12.0 | % | 13.1 | % | (1.1 | ) | 12.2 | % | 13.2 | % | (1.0 | ) | |||||||
| Total | 37.4 | % | 38.8 | % | (1.4 | ) | 37.3 | % | 38.4 | % | (1.1 | ) | |||||||
| |||||||||||||||||||
Mexico Key Market Data | Fourth-Quarter | Full-Year | |||||||||||||||||
| Change | Change | ||||||||||||||||||
| 2017 | 2016 | % / p.p. | 2017 | 2016 | % / p.p. | ||||||||||||||
| Total Cigarette Market (billion units) | 10.2 | 9.7 | 4.5 | % | 35.8 | 36.2 | (1.1 | )% | |||||||||||
| PMI Cigarette Shipments (million units) | 7,260 | 7,066 | 2.7 | % | 24,351 | 25,080 | (2.9 | )% | |||||||||||
| PMI Cigarette Market Share | |||||||||||||||||||
| 52.4 | % | 52.1 | % | 0.3 | 49.4 | % | 49.0 | % | 0.4 | ||||||||||
| Delicados | 8.3 | % | 9.5 | % | (1.2 | ) | 8.3 | % | 9.7 | % | (1.4 | ) | |||||||
| Benson & Hedges | 5.1 | % | 5.0 | % | 0.1 | 5.0 | % | 4.7 | % | 0.3 | |||||||||
| Others | 5.5 | % | 5.9 | % | (0.4 | ) | 5.4 | % | 5.9 | % | (0.5 | ) | |||||||
| Total | 71.3 | % | 72.5 | % | (1.2 | ) | 68.1 | % | 69.3 | % | (1.2 | ) | |||||||
| Schedule 1 | ||||||||||||
| and Subsidiaries
Condensed
Statements of Earnings
($
in millions, except per share data)
(Unaudited) For the Quarters Ended December 31, | ||||||||||||
| 2017 | 2016 | % Change | ||||||||||
| Net Revenues | $ | 21,585 | $ | 19,189 | 12.5 | % | ||||||
| Cost of sales | 3,001 | 2,499 | 20.1 | % | ||||||||
| Excise Taxes on products (1) | 13,291 | 12,218 | 8.8 | % | ||||||||
| Gross profit | 5,293 | 4,472 | 18.4 | % | ||||||||
| Marketing, administration and research costs | 1,952 | 1,842 | ||||||||||
| Asset impairment and exit costs | — | — | ||||||||||
| Amortization of intangibles | 23 | 18 | ||||||||||
| Operating Income (2) | 3,318 | 2,612 | 27.0 | % | ||||||||
| Interest expense, net | 259 | 201 | ||||||||||
| Earnings before income taxes | 3,059 | 2,411 | 26.9 | % | ||||||||
| Provision for income taxes | 2,265 | 658 | 100+% | |||||||||
| Equity (income)/loss in unconsolidated subsidiaries, net | (2 | ) | (22 | ) | ||||||||
| Net Earnings | 796 | 1,775 | (55.2 | )% | ||||||||
| Net Earnings attributable to noncontrolling interests | 102 | 64 | ||||||||||
| Net Earnings attributable to PMI | $ | 694 | $ | 1,711 | (59.4 | )% | ||||||
| Per share data (3): | ||||||||||||
| Basic Earnings Per Share | $ | 0.44 | $ | 1.10 | (60.0 | )% | ||||||
| Diluted Earnings Per Share | $ | 0.44 | $ | 1.10 | (60.0 | )% | ||||||
(1) The segment detail of Excise Taxes on products sold for the
quarters ended December 31, 2017 and 2016 is shown
on
Schedule 2. | ||||||||||||
(2) PMI's management evaluates segment performance and allocates
resources based on operating companies income,
which PMI
defines as operating income, excluding general corporate expenses
and amortization of intangibles, plus
equity (income)/loss in
unconsolidated subsidiaries, net. The reconciliation from
operating income to operating
companies income is as follows: | ||||||||||||
| 2017 | 2016 | % Change | ||||||||||
| Operating Income | $ | 3,318 | $ | 2,612 | 27.0 | % | ||||||
Excluding: | ||||||||||||
| - Amortization of intangibles | 23 | 18 | ||||||||||
- General corporate expenses (included in marketing, administration
and
research costs above) | 38 | 42 | ||||||||||
| Plus: Equity (income)/loss in unconsolidated subsidiaries, net | (2 | ) | (22 | ) | ||||||||
| Operating Companies Income | $ | 3,381 | $ | 2,694 | 25.5 | % | ||||||
(3) Net Earnings and weighted-average shares used in the basic and
diluted earnings per share computations for the
quarters
ended December 31, 2017 and 2016 are shown on Schedule 4, Footnote
1. | ||||||||||||
| Schedule 2 | |||||||||||||||||||||||
| and Subsidiaries
Selected
Financial Data by Business Segment
($ in millions)
(Unaudited) For the Quarters Ended December 31, | |||||||||||||||||||||||
| Net Revenues excluding Excise Taxes | |||||||||||||||||||||||
EuropeanUnion | EEMA | LatinAmerica & | Total | ||||||||||||||||||||
| 2017 | Net Revenues (1) | $ | 7,424 | $ | 4,868 | $ | 6,584 | $ | 2,709 | $ | 21,585 | ||||||||||||
| Excise Taxes on products | (5,160 | ) | (3,104 | ) | (3,149 | ) | (1,878 | ) | (13,291 | ) | |||||||||||||
| Net Revenues excluding Excise Taxes | 2,264 | 1,764 | 3,435 | 831 | 8,294 | ||||||||||||||||||
| 2016 | Net Revenues | $ | 6,465 | $ | 4,636 | $ | 5,517 | $ | 2,571 | $ | 19,189 | ||||||||||||
| Excise Taxes on products | (4,521 | ) | (2,838 | ) | (3,073 | ) | (1,786 | ) | (12,218 | ) | |||||||||||||
| Net Revenues excluding Excise Taxes | 1,944 | 1,798 | 2,444 | 785 | 6,971 | ||||||||||||||||||
| Variance | Currency | 139 | (23 | ) | (104 | ) | 2 | 14 | |||||||||||||||
| Acquisitions | — | — | — | — | — | ||||||||||||||||||
| Operations | 181 | (11 | ) | 1,095 | 44 | 1,309 | |||||||||||||||||
| Variance Total | 320 | (34 | ) | 991 | 46 | 1,323 | |||||||||||||||||
| Variance Total (%) | 16.5 | % | (1.9 | )% | 40.5 | % | 5.9 | % | 19.0 | % | |||||||||||||
| Variance excluding Currency | 181 | (11 | ) | 1,095 | 44 | 1,309 | |||||||||||||||||
| Variance excluding Currency (%) | 9.3 | % | (0.6 | )% | 44.8 | % | 5.6 | % | 18.8 | % | |||||||||||||
| Variance excluding Currency & Acquisitions | 181 | (11 | ) | 1,095 | 44 | 1,309 | |||||||||||||||||
| Variance excluding Currency & Acquisitions (%) | 9.3 | % | (0.6 | )% | 44.8 | % | 5.6 | % | 18.8 | % | |||||||||||||
| (1) 2017 Currency increased / (decreased) Net Revenues as follows: | |||||||||||||||||||||||
| $ | 455 | ||||||||||||||||||||||
| EEMA | (293 | ) | |||||||||||||||||||||
| (141 | ) | ||||||||||||||||||||||
| & | (78 | ) | |||||||||||||||||||||
| $ | (57 | ) | |||||||||||||||||||||
| Schedule 3 | |||||||||||||||||||||||
| and Subsidiaries
Selected
Financial Data by Business Segment
($ in millions)
(Unaudited) For the Quarters Ended December 31, | |||||||||||||||||||||||
| Operating Companies Income | |||||||||||||||||||||||
EuropeanUnion | EEMA | LatinAmerica& | Total | ||||||||||||||||||||
| 2017 | Operating Companies Income | $ | 992 | $ | 700 | $ | 1,396 | $ | 293 | $ | 3,381 | ||||||||||||
| 2016 | Operating Companies Income | 898 | 627 | 908 | 261 | 2,694 | |||||||||||||||||
| Variance | |||||||||||||||||||||||
| 2016 Asset impairment and exit costs | — | — | — | — | — | ||||||||||||||||||
| 2017 Asset impairment and exit costs | — | — | — | — | — | ||||||||||||||||||
| Currency | 39 | 264 | (97 | ) | (10 | ) | 196 | ||||||||||||||||
| Acquisitions | — | — | — | — | — | ||||||||||||||||||
| Operations | 55 | (191 | ) | 585 | 42 | 491 | |||||||||||||||||
| Variance Total | 94 | 73 | 488 | 32 | 687 | ||||||||||||||||||
| Variance Total (%) | 10.5 | % | 11.6 | % | 53.7 | % | 12.3 | % | 25.5 | % | |||||||||||||
| Variance excluding Currency | 55 | (191 | ) | 585 | 42 | 491 | |||||||||||||||||
| Variance excluding Currency (%) | 6.1 | % | (30.5 | )% | 64.4 | % | 16.1 | % | 18.2 | % | |||||||||||||
| Variance excluding Currency & Acquisitions | 55 | (191 | ) | 585 | 42 | 491 | |||||||||||||||||
| Variance excluding Currency & Acquisitions (%) | 6.1 | % | (30.5 | )% | 64.4 | % | 16.1 | % | 18.2 | % | |||||||||||||
| Schedule 4 | ||||||||||
| and Subsidiaries
Diluted
Earnings Per Share
($
in millions, except per share data)
(Unaudited) For the Quarters Ended December 31, | ||||||||||
| Diluted | ||||||||||
| E.P.S. | ||||||||||
| 2017 Diluted Earnings Per Share | $ | 0.44 | (1) | |||||||
| 2016 Diluted Earnings Per Share | $ | 1.10 | (1) | |||||||
| Change | $ | (0.66 | ) | |||||||
| % Change | (60.0 | )% | ||||||||
Reconciliation: | ||||||||||
| 2016 Diluted Earnings Per Share | $ | 1.10 | (1) | |||||||
Special Items: | ||||||||||
| 2016 Asset impairment and exit costs | — | |||||||||
| 2016 Tax items | — | |||||||||
| 2017 Asset impairment and exit costs | — | |||||||||
| 2017 Tax items | (0.88 | ) | ||||||||
| Currency | 0.01 | |||||||||
| Interest | (0.02 | ) | ||||||||
| Change in tax rate | (0.04 | ) | ||||||||
| Operations | 0.27 | (2) | ||||||||
| 2017 Diluted Earnings Per Share | $ | 0.44 | (1) | |||||||
| (1) Basic and diluted EPS were calculated using the following (in millions): | ||||||||||
| Q42017 | Q42016 | |||||||||
| Net Earnings attributable to PMI | $ | 694 | $ | 1,711 | ||||||
| Less distributed and undistributed earnings attributable | ||||||||||
| to share-based payment awards | 4 | 5 | ||||||||
| Net Earnings for basic and diluted EPS | $ | 690 | $ | 1,706 | ||||||
| Weighted-average shares for basic EPS | 1,553 | 1,552 | ||||||||
| Plus Contingently Issuable Performance Stock Units (PSUs) | 1 | — | ||||||||
| Weighted-average shares for diluted EPS | 1,554 | 1,552 | ||||||||
| (2) Includes the impact of shares outstanding and share-based payments | ||||||||||
| Schedule 5 | |||||||||||
| and Subsidiaries
Condensed
Statements of Earnings
($
in millions, except per share data)
(Unaudited) For the Years Ended December 31, | |||||||||||
| 2017 | 2016 | % Change | |||||||||
| Net Revenues | $ | 78,098 | $ | 74,953 | 4.2 | % | |||||
| Cost of sales | 10,432 | 9,391 | 11.1 | % | |||||||
| Excise Taxes on products (1) | 49,350 | 48,268 | 2.2 | % | |||||||
| Gross profit | 18,316 | 17,294 | 5.9 | % | |||||||
| Marketing, administration and research costs | 6,725 | 6,405 | |||||||||
| Asset impairment and exit costs | — | — | |||||||||
| Amortization of intangibles | 88 | 74 | |||||||||
| Operating Income (2) | 11,503 | 10,815 | 6.4 | % | |||||||
| Interest expense, net | 914 | 891 | |||||||||
| Earnings before income taxes | 10,589 | 9,924 | 6.7 | % | |||||||
| Provision for income taxes | 4,307 | 2,768 | 55.6 | % | |||||||
| Equity (income)/loss in unconsolidated subsidiaries, net | (59 | ) | (94 | ) | |||||||
| Net Earnings | 6,341 | 7,250 | (12.5 | )% | |||||||
| Net Earnings attributable to noncontrolling interests | 306 | 283 | |||||||||
| Net Earnings attributable to PMI | $ | 6,035 | $ | 6,967 | (13.4 | )% | |||||
| Per share data (3): | |||||||||||
| Basic Earnings Per Share | $ | 3.88 | $ | 4.48 | (13.4 | )% | |||||
| Diluted Earnings Per Share | $ | 3.88 | $ | 4.48 | (13.4 | )% | |||||
(1) The segment detail of Excise Taxes on products sold for the
year ended December 31, 2017 and 2016 is shown on
Schedule 6. | |||||||||||
(2) PMI's management evaluates segment performance and allocates
resources based on operating companies income,
which PMI
defines as operating income, excluding general corporate expenses
and amortization of intangibles, plus
equity (income)/loss in
unconsolidated subsidiaries, net. The reconciliation from
operating income to operating
companies income is as follows: | |||||||||||
| 2017 | 2016 | % Change | |||||||||
| Operating Income | $ | 11,503 | $ | 10,815 | 6.4 | % | |||||
Excluding: | |||||||||||
| - Amortization of intangibles | 88 | 74 | |||||||||
- General corporate expenses (included in marketing, administration
and
research costs above) | 164 | 161 | |||||||||
| Plus: Equity (income)/loss in unconsolidated subsidiaries, net | (59 | ) | (94 | ) | |||||||
| Operating Companies Income | $ | 11,814 | $ | 11,144 | 6.0 | % | |||||
(3) Net Earnings and weighted-average shares used in the basic and
diluted Earnings Per Share computations for the
year ended
December 31, 2017 and 2016 are shown on Schedule 8, Footnote 1. | |||||||||||
| Schedule 6 | |||||||||||||||||||||||
| and Subsidiaries
Selected
Financial Data by Business Segment
($ in millions)
(Unaudited) For the Years Ended December 31, | |||||||||||||||||||||||
| Net Revenues excluding Excise Taxes | |||||||||||||||||||||||
EuropeanUnion | EEMA | LatinAmerica & | Total | ||||||||||||||||||||
| 2017 | Net Revenues (1) | $ | 27,580 | $ | 18,045 | $ | 22,635 | $ | 9,838 | $ | 78,098 | ||||||||||||
| Excise Taxes on products | (19,262 | ) | (11,346 | ) | (11,845 | ) | (6,897 | ) | (49,350 | ) | |||||||||||||
| Net Revenues excluding Excise Taxes | 8,318 | 6,699 | 10,790 | 2,941 | 28,748 | ||||||||||||||||||
| 2016 | Net Revenues | $ | 27,129 | $ | 18,286 | $ | 20,531 | $ | 9,007 | $ | 74,953 | ||||||||||||
| Excise Taxes on products | (18,967 | ) | (11,286 | ) | (11,850 | ) | (6,165 | ) | (48,268 | ) | |||||||||||||
| Net Revenues excluding Excise Taxes | 8,162 | 7,000 | 8,681 | 2,842 | 26,685 | ||||||||||||||||||
| Variance | Currency | 45 | (291 | ) | (137 | ) | (54 | ) | (437 | ) | |||||||||||||
| Acquisitions | — | — | — | — | — | ||||||||||||||||||
| Operations | 111 | (10 | ) | 2,246 | 153 | 2,500 | |||||||||||||||||
| Variance Total | 156 | (301 | ) | 2,109 | 99 | 2,063 | |||||||||||||||||
| Variance Total (%) | 1.9 | % | (4.3 | )% | 24.3 | % | 3.5 | % | 7.7 | % | |||||||||||||
| Variance excluding Currency | 111 | (10 | ) | 2,246 | 153 | 2,500 | |||||||||||||||||
| Variance excluding Currency (%) | 1.4 | % | (0.1 | )% | 25.9 | % | 5.4 | % | 9.4 | % | |||||||||||||
| Variance excluding Currency & Acquisitions | 111 | (10 | ) | 2,246 | 153 | 2,500 | |||||||||||||||||
| Variance excluding Currency & Acquisitions (%) | 1.4 | % | (0.1 | )% | 25.9 | % | 5.4 | % | 9.4 | % | |||||||||||||
| (1) 2017 Currency increased / (decreased) Net Revenues as follows: | |||||||||||||||||||||||
| $ | 139 | ||||||||||||||||||||||
| EEMA | (1,925 | ) | |||||||||||||||||||||
| (165 | ) | ||||||||||||||||||||||
| & | (404 | ) | |||||||||||||||||||||
| $ | (2,355 | ) | |||||||||||||||||||||
| Schedule 7 | |||||||||||||||||||||||
| and Subsidiaries
Selected
Financial Data by Business Segment
($ in millions)
(Unaudited) For the Years Ended December 31, | |||||||||||||||||||||||
| Operating Companies Income | |||||||||||||||||||||||
EuropeanUnion | EEMA | LatinAmerica& | Total | ||||||||||||||||||||
| 2017 | Operating Companies Income | $ | 3,775 | $ | 2,888 | $ | 4,149 | $ | 1,002 | $ | 11,814 | ||||||||||||
| 2016 | Operating Companies Income | 3,994 | 3,016 | 3,196 | 938 | 11,144 | |||||||||||||||||
| Variance | |||||||||||||||||||||||
| 2016 Asset impairment and exit costs | — | — | — | — | — | ||||||||||||||||||
| 2017 Asset impairment and exit costs | — | — | — | — | — | ||||||||||||||||||
| Currency | (43 | ) | 81 | (123 | ) | (70 | ) | (155 | ) | ||||||||||||||
| Acquisitions | — | — | — | — | — | ||||||||||||||||||
| Operations | (176 | ) | (209 | ) | 1,076 | 134 | 825 | ||||||||||||||||
| Variance Total | (219 | ) | (128 | ) | 953 | 64 | 670 | ||||||||||||||||
| Variance Total (%) | (5.5 | )% | (4.2 | )% | 29.8 | % | 6.8 | % | 6.0 | % | |||||||||||||
| Variance excluding Currency | (176 | ) | (209 | ) | 1,076 | 134 | 825 | ||||||||||||||||
| Variance excluding Currency (%) | (4.4 | )% | (6.9 | )% | 33.7 | % | 14.3 | % | 7.4 | % | |||||||||||||
| Variance excluding Currency & Acquisitions | (176 | ) | (209 | ) | 1,076 | 134 | 825 | ||||||||||||||||
| Variance excluding Currency & Acquisitions (%) | (4.4 | )% | (6.9 | )% | 33.7 | % | 14.3 | % | 7.4 | % | |||||||||||||
| Schedule 8 | ||||||||||
| and Subsidiaries
Diluted
Earnings Per Share
($
in millions, except per share data)
(Unaudited) For the Years Ended December 31, | ||||||||||
| Diluted | ||||||||||
| E.P.S. | ||||||||||
| 2017 Diluted Earnings Per Share | $ | 3.88 | (1) | |||||||
| 2016 Diluted Earnings Per Share | $ | 4.48 | (1) | |||||||
| Change | $ | (0.60 | ) | |||||||
| % Change | (13.4 | )% | ||||||||
Reconciliation: | ||||||||||
| 2016 Diluted Earnings Per Share | $ | 4.48 | (1) | |||||||
Special Items: | ||||||||||
| 2016 Asset impairment and exit costs | — | |||||||||
| 2016 Tax items | — | |||||||||
| 2017 Asset impairment and exit costs | — | |||||||||
| 2017 Tax items | (0.84 | ) | ||||||||
| Currency | (0.21 | ) | ||||||||
| Interest | 0.01 | |||||||||
| Change in tax rate | (0.03 | ) | ||||||||
| Operations | 0.47 | (2) | ||||||||
| 2017 Diluted Earnings Per Share | $ | 3.88 | (1) | |||||||
| (1) Basic and diluted EPS were calculated using the following (in millions): | ||||||||||
YTDDecember2017 | YTDDecember2016 | |||||||||
| Net Earnings attributable to PMI | $ | 6,035 | $ | 6,967 | ||||||
| Less distributed and undistributed earnings attributable | ||||||||||
| to share-based payment awards | 14 | 19 | ||||||||
| Net Earnings for basic and diluted EPS | $ | 6,021 | $ | 6,948 | ||||||
| Weighted-average shares for basic EPS | 1,552 | 1,551 | ||||||||
| Plus Contingently Issuable Performance Stock Units (PSUs) | 1 | — | ||||||||
| Weighted-average shares for diluted EPS | 1,553 | 1,551 | ||||||||
| (2) Includes the impact of shares outstanding and share-based payments | ||||||||||
| Schedule 9 | ||||||||||
| and Subsidiaries
($ in millions, except ratios)
(Unaudited) Condensed Balance Sheets | ||||||||||
| December 31, | December 31, | |||||||||
| 2017 | 2016 | |||||||||
Assets | ||||||||||
| Cash and cash equivalents | $ | 8,447 | $ | 4,239 | ||||||
| All other current assets | 13,147 | 13,369 | ||||||||
| Property, plant and equipment, net | 7,271 | 6,064 | ||||||||
| 7,666 | 7,324 | |||||||||
| Other intangible assets, net | 2,432 | 2,470 | ||||||||
| Investments in unconsolidated subsidiaries | 1,074 | 1,011 | ||||||||
| Other assets | 2,931 | 2,374 | ||||||||
| Total assets | $ | 42,968 | $ | 36,851 | ||||||
| ||||||||||
Liabilities and Stockholders' (Deficit) Equity | ||||||||||
| Short-term borrowings | $ | 499 | $ | 643 | ||||||
| Current portion of long-term debt | 2,506 | 2,573 | ||||||||
| All other current liabilities | 12,957 | 13,251 | ||||||||
| Long-term debt | 31,334 | 25,851 | ||||||||
| Deferred income taxes | 799 | 1,897 | ||||||||
| Other long-term liabilities | 5,103 | 3,536 | ||||||||
| Total liabilities | 53,198 | 47,751 | ||||||||
| Total PMI stockholders' deficit | (12,086 | ) | (12,688 | ) | ||||||
| Noncontrolling interests | 1,856 | 1,788 | ||||||||
| Total stockholders' deficit | (10,230 | ) | (10,900 | ) | ||||||
| Total liabilities and stockholders' (deficit) equity | $ | 42,968 | $ | 36,851 | ||||||
| Total debt | $ | 34,339 | $ | 29,067 | ||||||
| Total debt to Adjusted EBITDA | 2.77 | (1) | 2.51 | (1) | ||||||
| Net debt to Adjusted EBITDA | 2.09 | (1) | 2.15 | (1) | ||||||
(1) For the calculation of Total Debt to Adjusted EBITDA and Net
Debt to Adjusted EBITDA ratios, refer to
Schedule 18. | ||||||||||
| Schedule 10 | |||||||||||||||||||||||||||||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Adjustments for the Impact of Currency and
Acquisitions
($
in millions)
(Unaudited) For the Quarters Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | % Change in Net Revenuesexcluding Excise Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
NetRevenues | LessExciseTaxes | NetRevenuesexcludingExciseTaxes | LessCurrency | NetRevenuesexcludingExciseTaxes
&Currency | LessAcquisitions | NetRevenuesexcludingExciseTaxes,Currency
&Acquisitions | NetRevenues | LessExciseTaxes | NetRevenuesexcludingExciseTaxes | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||
| $ | 7,424 | $ | 5,160 | $ | 2,264 | $ | 139 | $ | 2,125 | $ | — | $ | 2,125 | $ | 6,465 | $ | 4,521 | $ | 1,944 | 16.5 | % | 9.3 | % | 9.3 | % | ||||||||||||||||||||||||
| 4,868 | 3,104 | 1,764 | (23 | ) | 1,787 | — | 1,787 | EEMA | 4,636 | 2,838 | 1,798 | (1.9 | )% | (0.6 | )% | (0.6 | )% | ||||||||||||||||||||||||||||||||
| 6,584 | 3,149 | 3,435 | (104 | ) | 3,539 | — | 3,539 | 5,517 | 3,073 | 2,444 | 40.5 | % | 44.8 | % | 44.8 | % | |||||||||||||||||||||||||||||||||
| 2,709 | 1,878 | 831 | 2 | 829 | — | 829 | & | 2,571 | 1,786 | 785 | 5.9 | % | 5.6 | % | 5.6 | % | |||||||||||||||||||||||||||||||||
| $ | 21,585 | $ | 13,291 | $ | 8,294 | $ | 14 | $ | 8,280 | $ | — | $ | 8,280 | PMI Total | $ | 19,189 | $ | 12,218 | $ | 6,971 | 19.0 | % | 18.8 | % | 18.8 | % | |||||||||||||||||||||||
| 2017 | 2016 | % Change inOperating Companies Income | |||||||||||||||||||||||||||||||||||||||||||||||
OperatingCompaniesIncome | LessCurrency | OperatingCompaniesIncomeexcludingCurrency | LessAcquisitions | OperatingCompaniesIncomeexcludingCurrency
&Acquisitions | OperatingCompaniesIncome | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||||||
| $ | 992 | $ | 39 | $ | 953 | $ | — | $ | 953 | $ | 898 | 10.5 | % | 6.1 | % | 6.1 | % | ||||||||||||||||||||||||||||||||
| 700 | 264 | 436 | — | 436 | EEMA | 627 | 11.6 | % | (30.5 | )% | (30.5 | )% | |||||||||||||||||||||||||||||||||||||
| 1,396 | (97 | ) | 1,493 | — | 1,493 | 908 | 53.7 | % | 64.4 | % | 64.4 | % | |||||||||||||||||||||||||||||||||||||
| 293 | (10 | ) | 303 | — | 303 | & | 261 | 12.3 | % | 16.1 | % | 16.1 | % | ||||||||||||||||||||||||||||||||||||
| $ | 3,381 | $ | 196 | $ | 3,185 | $ | — | $ | 3,185 | PMI Total | $ | 2,694 | 25.5 | % | 18.2 | % | 18.2 | % | |||||||||||||||||||||||||||||||
| Schedule 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Selected Financial Data by Product Category
($ in millions) /
(Unaudited) For the Quarters Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | % Change in Combustible ProductsNet Revenues
excluding ExciseTaxes | |||||||||||||||||||||||||||||||||||||||||||||||
NetRevenues (1) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | LessCurrency | NetRevenuesexcludingExciseTaxes
&Currency | LessAcquisitions | NetRevenuesexcludingExciseTaxes,Currency
&Acquisitions | Combustible Products | NetRevenues (1) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | ||||||||||||||||||||||||||||||||||||
| $ | 7,278 | $ | 5,138 | $ | 2,140 | $ | 130 | $ | 2,009 | $ | — | $ | 2,009 | $ | 6,437 | $ | 4,518 | $ | 1,919 | 11.5 | % | 4.7 | % | 4.7 | % | ||||||||||||||||||||||||
| 4,778 | 3,098 | 1,680 | (22 | ) | 1,702 | — | 1,702 | EEMA | 4,630 | 2,838 | 1,792 | (6.3 | )% | (5.1 | )% | (5.1 | )% | ||||||||||||||||||||||||||||||||
| 5,093 | 3,089 | 2,003 | (36 | ) | 2,039 | — | 2,039 | 5,205 | 3,072 | 2,133 | (6.1 | )% | (4.4 | )% | (4.4 | )% | |||||||||||||||||||||||||||||||||
| 2,706 | 1,878 | 828 | 2 | 826 | — | 826 | & | 2,571 | 1,786 | 785 | 5.5 | % | 5.3 | % | 5.3 | % | |||||||||||||||||||||||||||||||||
| $ | 19,855 | $ | 13,204 | $ | 6,651 | $ | 75 | $ | 6,576 | $ | — | $ | 6,576 | Total CombustibleProducts | $ | 18,843 | $ | 12,215 | $ | 6,628 | 0.3 | % | (0.8 | )% | (0.8 | )% | |||||||||||||||||||||||
| 2017 | 2016 | % Change in Reduced-RiskProducts Net Revenues
excludingExcise Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
NetRevenues (2) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | LessCurrency | NetRevenuesexcludingExciseTaxes
&Currency | LessAcquisitions | NetRevenuesexcludingExciseTaxes,Currency
&Acquisitions | Reduced-RiskProducts | NetRevenues (2) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | ||||||||||||||||||||||||||||||||||||
| $ | 147 | $ | 23 | $ | 124 | $ | 7 | $ | 116 | $ | — | $ | 116 | $ | 27 | 3 | $ | 25 | +100% | +100% | +100% | ||||||||||||||||||||||||||||
| 90 | 5 | 85 | — | 85 | — | 85 | EEMA | 6 | — | 6 | +100% | +100% | +100% | ||||||||||||||||||||||||||||||||||||
| 1,491 | 59 | 1,432 | (68 | ) | 1,500 | — | 1,500 | 312 | — | 312 | +100% | +100% | +100% | ||||||||||||||||||||||||||||||||||||
| 3 | — | 3 | — | 3 | — | 3 | & | — | — | — | +100% | +100% | +100% | ||||||||||||||||||||||||||||||||||||
| $ | 1,730 | $ | 87 | $ | 1,643 | $ | (60 | ) | $ | 1,704 | $ | — | $ | 1,704 | Total Reduced-RiskProducts | $ | 345 | $ | 3 | $ | 343 | +100% | +100% | +100% | |||||||||||||||||||||||||
| $ | 21,585 | $ | 13,291 | $ | 8,294 | $ | 14 | $ | 8,280 | $ | — | $ | 8,280 | PMI Total | $ | 19,189 | $ | 12,218 | $ | 6,971 | 19.0 | % | 18.8% | 18.8% | |||||||||||||||||||||||||
(1) Net revenue amounts for our combustible products refer to the
operating revenues generated from the sale of these products, net
of sales and promotion incentives. These net revenue amounts
consist of
the sale of our cigarettes and other tobacco
products combined. Other tobacco products primarily include
tobacco for roll-your-own and make-your-own cigarettes, pipe
tobacco, cigars and cigarillos and do
not include
reduced-risk products. | |||||||||||||||||||||||||||||||||||||||||||||||||
(2) Net revenue amounts for our reduced-risk products refer to the
operating revenues generated from the sale of these products, net
of sales and promotion incentives. These net revenue amounts
consist of
the sale of our heated tobacco units, our
devices and related accessories, and other nicotine-containing
products, which primarily include our e-vapor products.
Reduced-risk products is the term we
use to refer to products
that present, are likely to present, or have the potential to
present less risk of harm to smokers who switch to these products
versus continued smoking. We have a range of reduced-
risk
products in various stages of development, scientific assessment
and commercialization. Because our reduced-risk products do not
burn tobacco, they produce far lower quantities of harmful and
potentially
harmful compounds than found in cigarette smoke. | |||||||||||||||||||||||||||||||||||||||||||||||||
(3) PMI often collects excise taxes from its customers and then
remits them to governments, and, in those circumstances, PMI
includes the excise taxes in its net revenues and in excise taxes
on products. In
some jurisdictions, including , PMI is
not responsible for collecting excise taxes. | |||||||||||||||||||||||||||||||||||||||||||||||||
Sum of product categories or Regions might not foot to PMI total due to rounding.Note: | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Reconciliation of Operating Companies
Income to Adjusted Operating Companies Income &
Reconciliation
of Adjusted Operating Companies Income Margin, excluding Currency
and Acquisitions
($
in millions)
(Unaudited) For the Quarters Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | % Change in AdjustedOperating Companies Income | |||||||||||||||||||||||||||||||||||||||||||||||
OperatingCompaniesIncome | LessAssetImpairment& ExitCosts | AdjustedOperatingCompaniesIncome | LessCurrency | AdjustedOperatingCompaniesIncomeexcludingCurrency | LessAcquisitions | AdjustedOperatingCompaniesIncomeexcludingCurrency
&Acquisitions | OperatingCompaniesIncome | LessAssetImpairment& ExitCosts | AdjustedOperatingCompaniesIncome | Adjusted | AdjustedexcludingCurrency | AdjustedexcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||
| $ | 992 | $ | — | $ | 992 | $ | 39 | $ | 953 | $ | — | $ | 953 | $ | 898 | $ | — | $ | 898 | 10.5 | % | 6.1 | % | 6.1 | % | ||||||||||||||||||||||||
| 700 | — | 700 | 264 | 436 | — | 436 | EEMA | 627 | — | 627 | 11.6 | % | (30.5 | )% | (30.5 | )% | |||||||||||||||||||||||||||||||||
| 1,396 | — | 1,396 | (97 | ) | 1,493 | — | 1,493 | 908 | — | 908 | 53.7 | % | 64.4 | % | 64.4 | % | |||||||||||||||||||||||||||||||||
| 293 | — | 293 | (10 | ) | 303 | — | 303 | & | 261 | — | 261 | 12.3 | % | 16.1 | % | 16.1 | % | ||||||||||||||||||||||||||||||||
| $ | 3,381 | $ | — | $ | 3,381 | $ | 196 | $ | 3,185 | $ | — | $ | 3,185 | PMI Total | $ | 2,694 | $ | — | $ | 2,694 | 25.5 | % | 18.2 | % | 18.2 | % | |||||||||||||||||||||||
| 2017 | 2016 | % Points Change | |||||||||||||||||||||||||||||||||||||||||||||||
AdjustedOperatingCompaniesIncomeexcludingCurrency | NetRevenuesexcludingExciseTaxes
&Currency(1) | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency | AdjustedOperatingCompaniesIncomeexcludingCurrency
&Acquisitions | Net RevenuesexcludingExcise Taxes,Currency
&Acquisitions(1) | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency
&Acquisitions | AdjustedOperatingCompaniesIncome | NetRevenuesexcludingExciseTaxes(1) | AdjustedOperatingCompaniesIncomeMargin | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||||
| $ | 953 | $ | 2,125 | 44.8 | % | $ | 953 | $ | 2,125 | 44.8 | % | $ | 898 | $ | 1,944 | 46.2 | % | (1.4 | ) | (1.4 | ) | ||||||||||||||||||||||||||||
| 436 | 1,787 | 24.4 | % | 436 | 1,787 | 24.4 | % | EEMA | 627 | 1,798 | 34.9 | % | (10.5 | ) | (10.5 | ) | |||||||||||||||||||||||||||||||||
| 1,493 | 3,539 | 42.2 | % | 1,493 | 3,539 | 42.2 | % | 908 | 2,444 | 37.2 | % | 5.0 | 5.0 | ||||||||||||||||||||||||||||||||||||
| 303 | 829 | 36.6 | % | 303 | 829 | 36.6 | % | & | 261 | 785 | 33.2 | % | 3.4 | 3.4 | |||||||||||||||||||||||||||||||||||
| $ | 3,185 | $ | 8,280 | 38.5 | % | $ | 3,185 | $ | 8,280 | 38.5 | % | PMI Total | $ | 2,694 | $ | 6,971 | 38.6 | % | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||||||
| (1) For the calculation of Net Revenues excluding Excise Taxes, currency and acquisitions, refer to Schedule 10. | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule 13 | |||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to
Reported Diluted EPS, excluding Currency, and
Reconciliation of
Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted
EPS, excluding Currency
(Unaudited) For the Quarters Ended December 31, | |||||||||||||
| 2017 | 2016 | % Change | |||||||||||
| Reported Diluted EPS | $ | 0.44 | $ | 1.10 | (60.0 | )% | |||||||
| Less: | |||||||||||||
| Currency impact | 0.01 | ||||||||||||
| Reported Diluted EPS, excluding Currency | $ | 0.43 | $ | 1.10 | (60.9 | )% | |||||||
| 2017 | 2016 | % Change | |||||||||||
| Reported Diluted EPS | $ | 0.44 | $ | 1.10 | (60.0 | )% | |||||||
| Adjustments: | |||||||||||||
| Asset impairment and exit costs | — | — | |||||||||||
| Tax items | 0.88 | — | |||||||||||
| Adjusted Diluted EPS | $ | 1.32 | $ | 1.10 | 20.0 | % | |||||||
| Less: | |||||||||||||
| Currency impact | 0.01 | ||||||||||||
| Adjusted Diluted EPS, excluding Currency | $ | 1.31 | $ | 1.10 | 19.1 | % | |||||||
| Schedule 14 | |||||||||||||||||||||||||||||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Adjustments for the Impact of Currency and
Acquisitions
($ in
millions)
(Unaudited) For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | % Change in Net Revenuesexcluding Excise Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
NetRevenues | LessExciseTaxes | NetRevenuesexcludingExciseTaxes | LessCurrency | NetRevenuesexcludingExciseTaxes
&Currency | LessAcquisitions | NetRevenuesexcludingExciseTaxes,Currency
&Acquisitions | NetRevenues | LessExciseTaxes | NetRevenuesexcludingExciseTaxes | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||
| $ | 27,580 | $ | 19,262 | $ | 8,318 | $ | 45 | $ | 8,273 | $ | — | $ | 8,273 | $ | 27,129 | $ | 18,967 | $ | 8,162 | 1.9 | % | 1.4 | % | 1.4 | % | ||||||||||||||||||||||||
| 18,045 | 11,346 | 6,699 | (291 | ) | 6,990 | — | 6,990 | EEMA | 18,286 | 11,286 | 7,000 | (4.3 | )% | (0.1 | )% | (0.1 | )% | ||||||||||||||||||||||||||||||||
| 22,635 | 11,845 | 10,790 | (137 | ) | 10,927 | — | 10,927 | 20,531 | 11,850 | 8,681 | 24.3 | % | 25.9 | % | 25.9 | % | |||||||||||||||||||||||||||||||||
| 9,838 | 6,897 | 2,941 | (54 | ) | 2,995 | — | 2,995 | & | 9,007 | 6,165 | 2,842 | 3.5 | % | 5.4 | % | 5.4 | % | ||||||||||||||||||||||||||||||||
| $ | 78,098 | $ | 49,350 | $ | 28,748 | $ | (437 | ) | $ | 29,185 | $ | — | $ | 29,185 | PMI Total | $ | 74,953 | $ | 48,268 | $ | 26,685 | 7.7 | % | 9.4 | % | 9.4 | % | ||||||||||||||||||||||
| 2017 | 2016 | % Change inOperating Companies Income | |||||||||||||||||||||||||||||||||||||||||||||||
OperatingCompaniesIncome | LessCurrency | OperatingCompaniesIncomeexcludingCurrency | LessAcquisitions | OperatingCompaniesIncomeexcludingCurrency
&Acquisitions | OperatingCompaniesIncome | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||||||
| $ | 3,775 | $ | (43 | ) | $ | 3,818 | $ | — | $ | 3,818 | $ | 3,994 | (5.5 | )% | (4.4 | )% | (4.4 | )% | |||||||||||||||||||||||||||||||
| 2,888 | 81 | 2,807 | — | 2,807 | EEMA | 3,016 | (4.2 | )% | (6.9 | )% | (6.9 | )% | |||||||||||||||||||||||||||||||||||||
| 4,149 | (123 | ) | 4,272 | — | 4,272 | 3,196 | 29.8 | % | 33.7 | % | 33.7 | % | |||||||||||||||||||||||||||||||||||||
| 1,002 | (70 | ) | 1,072 | — | 1,072 | & | 938 | 6.8 | % | 14.3 | % | 14.3 | % | ||||||||||||||||||||||||||||||||||||
| $ | 11,814 | $ | (155 | ) | $ | 11,969 | $ | — | $ | 11,969 | PMI Total | $ | 11,144 | 6.0 | % | 7.4 | % | 7.4 | % | ||||||||||||||||||||||||||||||
| Schedule 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Selected Financial Data by Product Category
($ in millions) / (Unaudited) For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | % Change in Combustible ProductsNet Revenues
excluding ExciseTaxes | |||||||||||||||||||||||||||||||||||||||||||||||
NetRevenues (1) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | LessCurrency | NetRevenuesexcludingExciseTaxes
&Currency | LessAcquisitions | NetRevenuesexcludingExciseTaxes,Currency
&Acquisitions | Combustible Products | NetRevenues (1) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | ||||||||||||||||||||||||||||||||||||
| $ | 27,261 | $ | 19,213 | $ | 8,048 | $ | 39 | $ | 8,009 | $ | — | $ | 8,009 | $ | 27,067 | $ | 18,962 | $ | 8,105 | (0.7 | )% | (1.2 | )% | (1.2 | )% | ||||||||||||||||||||||||
| 17,886 | 11,336 | 6,550 | (290 | ) | 6,840 | — | 6,840 | EEMA | 18,276 | 11,286 | 6,991 | (6.3 | )% | (2.1 | )% | (2.1 | )% | ||||||||||||||||||||||||||||||||
| 19,325 | 11,753 | 7,572 | (43 | ) | 7,615 | — | 7,615 | 19,865 | 11,850 | 8,015 | (5.5 | )% | (5.0 | )% | (5.0 | )% | |||||||||||||||||||||||||||||||||
| 9,833 | 6,896 | 2,937 | (54 | ) | 2,991 | — | 2,991 | & | 9,006 | 6,164 | 2,841 | 3.4 | % | 5.3 | % | 5.3 | % | ||||||||||||||||||||||||||||||||
| $ | 74,305 | $ | 49,198 | $ | 25,107 | $ | (348 | ) | $ | 25,456 | $ | — | $ | 25,456 | Total Combustible Products | $ | 74,214 | $ | 48,262 | $ | 25,952 | (3.3 | )% | (1.9 | )% | (1.9 | )% | ||||||||||||||||||||||
| 2017 | 2016 | % Change in Reduced-RiskProducts Net Revenues
excludingExcise Taxes | |||||||||||||||||||||||||||||||||||||||||||||||
NetRevenues (2) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | LessCurrency | NetRevenuesexcludingExciseTaxes
&Currency | LessAcquisitions | NetRevenuesexcludingExciseTaxes,Currency
&Acquisitions | Reduced-Risk Products | NetRevenues (2) | LessExciseTaxes (3) | NetRevenuesexcludingExciseTaxes | Total | ExcludingCurrency | ExcludingCurrency &Acquisitions | ||||||||||||||||||||||||||||||||||||
| $ | 320 | $ | 51 | $ | 269 | $ | 5 | $ | 264 | $ | — | $ | 264 | $ | 62 | 5 | $ | 57 | +100% | +100% | +100% | ||||||||||||||||||||||||||||
| 158 | 10 | 149 | — | 149 | — | 149 | EEMA | 9 | — | 9 | +100% | +100% | +100% | ||||||||||||||||||||||||||||||||||||
| 3,310 | 92 | 3,218 | (94 | ) | 3,312 | — | 3,312 | 666 | — | 666 | +100% | +100% | +100% | ||||||||||||||||||||||||||||||||||||
| 5 | — | 4 | — | 4 | — | 4 | & | 2 | 1 | 1 | +100% | +100% | +100% | ||||||||||||||||||||||||||||||||||||
| $ | 3,793 | $ | 153 | $ | 3,640 | $ | (89 | ) | $ | 3,729 | $ | — | $ | 3,729 | Total Reduced-RiskProducts | $ | 739 | $ | 6 | $ | 733 | +100% | +100% | +100% | |||||||||||||||||||||||||
| $ | 78,098 | $ | 49,350 | $ | 28,748 | $ | (437 | ) | $ | 29,185 | $ | — | $ | 29,185 | PMI Total | $ | 74,953 | $ | 48,268 | $ | 26,685 | 7.7 | % | 9.4 | % | 9.4 | % | ||||||||||||||||||||||
(1) Net revenue amounts for our combustible products refer to the
operating revenues generated from the sale of these products, net
of sales and promotion incentives. These net revenue amounts
consist of
the sale of our cigarettes and other tobacco
products combined. Other tobacco products primarily include
tobacco for roll-your-own and make-your-own cigarettes, pipe
tobacco, cigars and cigarillos and do
not include
reduced-risk products. | |||||||||||||||||||||||||||||||||||||||||||||||||
(2) Net revenue amounts for our reduced-risk products refer to the
operating revenues generated from the sale of these products, net
of sales and promotion incentives. These net revenue amounts
consist of
the sale of our heated tobacco units, our
devices and related accessories, and other nicotine-containing
products, which primarily include our e-vapor products.
Reduced-risk products is the term we
use to refer to products
that present, are likely to present, or have the potential to
present less risk of harm to smokers who switch to these products
versus continued smoking. We have a range of reduced-
risk
products in various stages of development, scientific assessment
and commercialization. Because our reduced-risk products do not
burn tobacco, they produce far lower quantities of harmful and
potentially
harmful compounds than found in cigarette smoke. | |||||||||||||||||||||||||||||||||||||||||||||||||
(3) PMI often collects excise taxes from its customers and then
remits them to governments, and, in those circumstances, PMI
includes the excise taxes in its net revenues and in excise taxes
on products. In
some jurisdictions, including , PMI is
not responsible for collecting excise taxes. | |||||||||||||||||||||||||||||||||||||||||||||||||
Sum of product categories or Regions might not foot to PMI total due to rounding.Note: | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Reconciliation of Operating Companies
Income to Adjusted Operating Companies Income &
Reconciliation
of Adjusted Operating Companies Income Margin, excluding Currency
and Acquisitions
($
in millions)
(Unaudited) For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | % Change in AdjustedOperating Companies Income | |||||||||||||||||||||||||||||||||||||||||||||||
OperatingCompaniesIncome | LessAssetImpairment &Exit
Costs | AdjustedOperatingCompaniesIncome | LessCurrency | AdjustedOperatingCompaniesIncomeexcludingCurrency | LessAcquisitions | AdjustedOperatingCompaniesIncomeexcludingCurrency
&Acquisitions | OperatingCompaniesIncome | LessAssetImpairment&
ExitCosts | AdjustedOperatingCompaniesIncome | Adjusted | AdjustedexcludingCurrency | AdjustedexcludingCurrency &Acquisitions | |||||||||||||||||||||||||||||||||||||
| $ | 3,775 | $ | — | $ | 3,775 | $ | (43 | ) | $ | 3,818 | $ | — | $ | 3,818 | $ | 3,994 | $ | — | $ | 3,994 | (5.5 | )% | (4.4 | )% | (4.4 | )% | |||||||||||||||||||||||
| 2,888 | — | 2,888 | 81 | 2,807 | — | 2,807 | EEMA | 3,016 | — | 3,016 | (4.2 | )% | (6.9 | )% | (6.9 | )% | |||||||||||||||||||||||||||||||||
| 4,149 | — | 4,149 | (123 | ) | 4,272 | — | 4,272 | 3,196 | — | 3,196 | 29.8 | % | 33.7 | % | 33.7 | % | |||||||||||||||||||||||||||||||||
| 1,002 | — | 1,002 | (70 | ) | 1,072 | — | 1,072 | & | 938 | — | 938 | 6.8 | % | 14.3 | % | 14.3 | % | ||||||||||||||||||||||||||||||||
| $ | 11,814 | $ | — | $ | 11,814 | $ | (155 | ) | $ | 11,969 | $ | — | $ | 11,969 | PMI Total | $ | 11,144 | $ | — | $ | 11,144 | 6.0 | % | 7.4 | % | 7.4 | % | ||||||||||||||||||||||
| 2017 | 2016 | % Points Change | |||||||||||||||||||||||||||||||||||||||||||||||
AdjustedOperatingCompaniesIncomeexcludingCurrency | Net RevenuesexcludingExcise Taxes&
Currency(1) | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency | AdjustedOperatingCompaniesIncomeexcludingCurrency
&Acquisitions | Net RevenuesexcludingExcise Taxes,Currency
&Acquisitions(1) | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency
&Acquisitions | AdjustedOperatingCompaniesIncome | NetRevenuesexcludingExciseTaxes(1) | AdjustedOperatingCompaniesIncomeMargin | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency | AdjustedOperatingCompaniesIncomeMarginexcludingCurrency
&Acquisitions | |||||||||||||||||||||||||||||||||||||||
| $ | 3,818 | $ | 8,273 | 46.2 | % | $ | 3,818 | $ | 8,273 | 46.2 | % | $ | 3,994 | $ | 8,162 | 48.9 | % | (2.7 | ) | (2.7 | ) | ||||||||||||||||||||||||||||
| 2,807 | 6,990 | 40.2 | % | 2,807 | 6,990 | 40.2 | % | EEMA | 3,016 | 7,000 | 43.1 | % | (2.9 | ) | (2.9 | ) | |||||||||||||||||||||||||||||||||
| 4,272 | 10,927 | 39.1 | % | 4,272 | 10,927 | 39.1 | % | 3,196 | 8,681 | 36.8 | % | 2.3 | 2.3 | ||||||||||||||||||||||||||||||||||||
| 1,072 | 2,995 | 35.8 | % | 1,072 | 2,995 | 35.8 | % | & | 938 | 2,842 | 33.0 | % | 2.8 | 2.8 | |||||||||||||||||||||||||||||||||||
| $ | 11,969 | $ | 29,185 | 41.0 | % | $ | 11,969 | $ | 29,185 | 41.0 | % | PMI Total | $ | 11,144 | $ | 26,685 | 41.8 | % | (0.8 | ) | (0.8 | ) | |||||||||||||||||||||||||||
| (1) For the calculation of Net Revenues excluding Excise Taxes, currency and acquisitions, refer to Schedule 14. | |||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule 17 | |||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to
Reported Diluted EPS, excluding Currency, and
Reconciliation of
Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted
EPS, excluding Currency
(Unaudited) For the Years Ended December 31, | |||||||||||||
| 2017 | 2016 | % Change | |||||||||||
| Reported Diluted EPS | $ | 3.88 | $ | 4.48 | (13.4 | )% | |||||||
| Less: | |||||||||||||
| Currency impact | (0.21 | ) | |||||||||||
| Reported Diluted EPS, excluding Currency | $ | 4.09 | $ | 4.48 | (8.7 | )% | |||||||
| 2017 | 2016 | % Change | |||||||||||
| Reported Diluted EPS | $ | 3.88 | $ | 4.48 | (13.4 | )% | |||||||
| Adjustments: | |||||||||||||
| Asset impairment and exit costs | — | — | |||||||||||
| Tax items | 0.84 | — | |||||||||||
| Adjusted Diluted EPS | $ | 4.72 | $ | 4.48 | 5.4 | % | |||||||
| Less: | |||||||||||||
| Currency impact | (0.21 | ) | |||||||||||
| Adjusted Diluted EPS, excluding Currency | $ | 4.93 | $ | 4.48 | 10.0 | % | |||||||
| Schedule 18 | |||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Calculation of Total Debt to Adjusted
EBITDA and Net Debt to Adjusted EBITDA Ratios
($ in millions,
except ratios)
(Unaudited) | |||||||||
| For the Year EndedDecember 31,2017 | For the Year EndedDecember 31,2016 | ||||||||
| Net Earnings | $ | 6,341 | $ | 7,250 | |||||
| Equity (income)/loss in unconsolidated subsidiaries, net | (59 | ) | (94 | ) | |||||
| Provision for Income Taxes | 4,307 | 2,768 | |||||||
| Interest expense, net | 914 | 891 | |||||||
| Depreciation and amortization | 875 | 743 | |||||||
| Asset impairment and exit costs | — | — | |||||||
| Adjusted EBITDA | $ | 12,378 | $ | 11,558 | |||||
| December 31,2017 | December 31,2016 | ||||||||
| Short-term borrowings | $ | 499 | $ | 643 | |||||
| Current portion of long-term debt | 2,506 | 2,573 | |||||||
| Long-term debt | 31,334 | 25,851 | |||||||
| Total Debt | $ | 34,339 | $ | 29,067 | |||||
| Less: Cash and cash equivalents | 8,447 | 4,239 | |||||||
| Net Debt | $ | 25,892 | $ | 24,828 | |||||
Ratios: | |||||||||
| Total Debt to Adjusted EBITDA | 2.77 | 2.51 | |||||||
| Net Debt to Adjusted EBITDA | 2.09 | 2.15 | |||||||
| Schedule 19 | |||||||||||||||||||||||
| and Subsidiaries
Reconciliation
of Non-GAAP Measures
Reconciliation of Operating Cash Flow to
Operating Cash Flow, excluding Currency
($ in millions)
(Unaudited) For the Years Ended December 31, | |||||||||||||||||||||||
| For the Quarters EndedDecember 31, | For the Years EndedDecember 31, | ||||||||||||||||||||||
| 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||||
| Net cash provided by operating activities (1) | $ | 2,921 | $ | 2,149 | 35.9 | % | $ | 8,912 | $ | 8,077 | 10.3 | % | |||||||||||
| Less: | |||||||||||||||||||||||
| Currency impact | 194 | 392 | |||||||||||||||||||||
| Net cash provided by operating activities,excluding
currency | $ | 2,727 | $ | 2,149 | 26.9 | % | $ | 8,520 | $ | 8,077 | 5.5 | % | |||||||||||
| (1) Operating cash flow. | |||||||||||||||||||||||
Quick facts: Philip Morris International
Price: 70.04
Market: NYSE
Market Cap: $109.07 billion
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