Philip Morris International Inc
For the period ended Mar 31, 2024. Filed Apr 26, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 26, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 1. Financial Statements (Unaudited)
Item 1. Financial Statements.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net revenues 1 & 2 (Notes 7 & 12) | $8,793 | $8,019 |
| Cost of sales | 3,195 | 3,038 |
| Gross profit | 5,598 | 4,981 |
| Marketing, administration and research costs (Note 15) | 2,553 | 2,250 |
| Operating income | 3,045 | 2,731 |
| Interest expense, net | 299 | 230 |
| Pension and other employee benefit costs (Note 3) | 15 | 22 |
| Earnings before income taxes | 2,731 | 2,479 |
| Provision for income taxes | 676 | 428 |
| Equity investments and securities (income)/loss, net | (191) | (51) |
| Net earnings | 2,246 | 2,102 |
| Net earnings attributable to noncontrolling interests | 98 | 107 |
| Net earnings attributable to PMI | $2,148 | $1,995 |
| Per share data (Note 6): | ||
| Basic earnings per share | $1.38 | $1.28 |
| Diluted earnings per share | $1.38 | $1.28 |
(1) Includes net revenues from related parties of $860 million and $873 million for the three months ended March 31, 2024 and 2023, respectively
(2) Net of excise taxes of $11,839 million and $11,299 million for the three months ended March 31, 2024 and 2023, respectively
Condensed Consolidated Statements of Comprehensive Earnings
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net earnings | $2,246 | $2,102 |
| Other comprehensive earnings (losses), net of income taxes: | ||
| Change in currency translation adjustments: | ||
| Unrealized gains (losses), net of income taxes of $(102) in 2024 and $52 in 2023 | 488 | (255) |
| (Gains)/losses transferred to earnings, net of income taxes of $0 in 2024 and 2023 (Notes 11 &15) | 42 | — |
| Change in net loss and prior service cost: | ||
| Net gains (losses) and prior service costs, net of income taxes of $0 in 2024 and $(1) in 2023 | — | 2 |
| Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(9) in 2024 and $(7) in 2023 | 34 | 25 |
| Change in fair value of derivatives accounted for as hedges: | ||
| Gains (losses) recognized, net of income taxes of $(39) in 2024 and $(16) in 2023 | 178 | 59 |
| (Gains) losses transferred to earnings, net of income taxes of $16 in 2024 and $6 in 2023 | (46) | (29) |
| Total other comprehensive earnings (losses) | 696 | (198) |
| Total comprehensive earnings | 2,942 | 1,904 |
| Less comprehensive earnings (losses) attributable to: | ||
| Noncontrolling interests | 44 | (36) |
| Comprehensive earnings attributable to PMI | $2,898 | $1,940 |
Condensed Consolidated Balance Sheets
| March 31,2024 | December 31,2023 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $3,968 | $3,060 |
| Trade receivables (less allowances of $72 in 2024 and $79 in 2023) (1) | 4,188 | 3,461 |
| Other receivables (less allowances of $32 in 2024 and $35 in 2023) | 864 | 930 |
| Inventories: | ||
| Leaf tobacco | 1,959 | 1,942 |
| Other raw materials | 2,162 | 2,293 |
| Finished product | 5,849 | 6,539 |
| 9,970 | 10,774 | |
| Other current assets | 1,884 | 1,530 |
| Total current assets | 20,874 | 19,755 |
| Property, plant and equipment, at cost | 16,545 | 17,080 |
| Less: accumulated depreciation | 9,344 | 9,564 |
| 7,201 | 7,516 | |
| Goodwill (Note 4) | 16,458 | 16,779 |
| Other intangible assets, net (Note 4) | 9,448 | 9,864 |
| Equity investments (Note 12) | 4,918 | 4,929 |
| Deferred income taxes | 950 | 814 |
| Other assets (less allowances of $24 in 2024 and $25 in 2023) (Note 18) | 5,466 | 5,647 |
| TOTAL ASSETS | $65,315 | $65,304 |
(1) Includes trade receivables from related parties of $702 million and $710 million as of March 31, 2024, and December 31, 2023, respectively. For further details, see Note 12. Related Parties - Equity Investments and Other.
Continued
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share data)
| March 31,2024 | December 31,2023 | |
|---|---|---|
| LIABILITIES | ||
| Short-term borrowings (Note 10) | $279 | $1,968 |
| Current portion of long-term debt (Note 10) | 5,425 | 4,698 |
| Accounts payable | 3,648 | 4,143 |
| Accrued liabilities: | ||
| Marketing and selling | 823 | 862 |
| Taxes, except income taxes | 5,799 | 7,514 |
| Employment costs | 925 | 1,262 |
| Dividends payable | 2,038 | 2,041 |
| Other | 2,409 | 2,737 |
| Income taxes | 822 | 1,158 |
| Total current liabilities | 22,168 | 26,383 |
| Long-term debt (Note 10) | 44,683 | 41,243 |
| Deferred income taxes | 2,664 | 2,335 |
| Employment costs | 2,824 | 3,046 |
| Income taxes and other liabilities | 1,539 | 1,743 |
| Total liabilities | 73,878 | 74,750 |
| Contingencies (Note 8) | ||
| STOCKHOLDERS’ (DEFICIT) EQUITY | ||
| Common stock, no par value (2,109,316,331 shares issued in 2024 and 2023) | — | — |
| Additional paid-in capital | 2,205 | 2,285 |
| Earnings reinvested in the business | 34,208 | 34,090 |
| Accumulated other comprehensive losses (Note 11) | (11,065) | (11,815) |
| 25,348 | 24,560 | |
| Less: cost of repurchased stock (554,763,523 and 556,891,800 shares in 2024 and 2023, respectively) | 35,657 | 35,785 |
| Total PMI stockholders’ deficit | (10,309) | (11,225) |
| Noncontrolling interests | 1,746 | 1,779 |
| Total stockholders’ deficit | (8,563) | (9,446) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $65,315 | $65,304 |
Condensed Consolidated Statements of Cash Flows
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
| Net earnings | $2,246 | $2,102 |
| Adjustments to reconcile net earnings to operating cash flows: | ||
| Depreciation and amortization expense | 367 | 299 |
| Impairment of other intangibles (Note 4) | 27 | — |
| Deferred income tax (benefit) provision | 76 | (96) |
| Asset impairment and exit costs, net of cash paid (Note 15) | 148 | 102 |
| Cash effects of changes, net of the effects from acquired companies: | ||
| Receivables, net (1) | (890) | 245 |
| Inventories | 527 | (783) |
| Accounts payable | (181) | (145) |
| Accrued liabilities and other current assets | (1,797) | (2,705) |
| Income taxes | (79) | (88) |
| Pension plan contributions (Note 3) | (34) | (45) |
| Other | (169) | 159 |
| Net cash provided by (used in) operating activities | 241 | (955) |
| CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||
| Capital expenditures | (417) | (279) |
| Equity investments | (20) | (8) |
| Collateral posted/settlements for derivatives, (paid)/returned (Note 5) | 310 | (164) |
| Other | (66) | (140) |
| Net cash provided by (used in) investing activities | (193) | (591) |
(1) Includes amounts from related parties of $(45) million and $(76) million for March 31, 2024 and 2023, respectively
Continued
Condensed Consolidated Statements of Cash Flows (Continued)
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | ||
| Short-term borrowing activity by original maturity: | ||
| Net issuances (repayments) - maturities of 90 days or less | $(1,475) | $3,361 |
| Issuances - maturities longer than 90 days | 100 | 358 |
| Repayments - maturities longer than 90 days | (284) | (138) |
| Repayments under credit facilities related to Swedish Match AB acquisition | — | (4,430) |
| Long-term debt proceeds | 4,659 | 5,203 |
| Long-term debt repaid | — | (682) |
| Dividends paid | (2,037) | (1,987) |
| Collateral received/settlements for derivatives, received/(returned) | 260 | (2) |
| Payments to acquire Swedish Match AB noncontrolling interests | — | (883) |
| Noncontrolling interests activity and Other (Note 18) | (88) | 64 |
| Net cash provided by (used in) financing activities | 1,135 | 864 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (230) | (89) |
| Cash, cash equivalents and restricted cash (1): | ||
| Increase (Decrease) | 953 | (771) |
| Balance at beginning of period | 3,146 | 3,217 |
| Balance at end of period | $4,099 | $2,446 |
(1)The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $131 million and $18 million as of March 31, 2024 and 2023, respectively, and $86 million and $10 million as of December 31, 2023 and 2022, respectively, which were included in other current assets in the condensed consolidated balance sheets.
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Three Months Ended March 31, 2024 and 2023
(in millions of dollars, except per share amounts)
| PMI Stockholders’ (Deficit) Equity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CommonStock · AdditionalPaid-inCapital · EarningsReinvested intheBusiness · AccumulatedOtherComprehensive Losses · Cost ofRepurchasedStock · NoncontrollingInterests · Total | ||||||||||||||
| Balances, January 1, 2023 | $— | $2,230 | $34,289 | $(9,559) | $(35,917) | $2,646 | $(6,311) | |||||||
| Net earnings | 1,995 | 107 | 2,102 | |||||||||||
| Other comprehensive earnings (losses), net of income taxes | (234) | 36 | (198) | |||||||||||
| Issuance of stock awards | (63) | 116 | 53 | |||||||||||
| Dividends declared ($1.27 per share) | (1,981) | (1,981) | ||||||||||||
| Dividends paid to noncontrolling interests | (93) | (93) | ||||||||||||
| Sale (purchase) of subsidiary shares to/(from) noncontrolling interests (Note 18) | 21 | 179 | (825) | (625) | ||||||||||
| Balances, March 31, 2023 | $— | $2,188 | $34,303 | $(9,614) | $(35,801) | $1,871 | $(7,053) | |||||||
| Balances, January 1, 2024 | $— | $2,285 | $34,090 | $(11,815) | $(35,785) | $1,779 | $(9,446) | |||||||
| Net earnings | 2,148 | 98 | 2,246 | |||||||||||
| Other comprehensive earnings (losses), net of income taxes | 750 | (54) | 696 | |||||||||||
| Issuance of stock awards | (80) | 128 | 48 | |||||||||||
| Dividends declared ($1.30 per share) | (2,030) | (2,030) | ||||||||||||
| Dividends paid to noncontrolling interests | (76) | (76) | ||||||||||||
| Sale (purchase) of subsidiary shares to/(from) noncontrolling interests | — | — | (1) | (1) | ||||||||||
| Balances, March 31, 2024 | $— | $2,205 | $34,208 | $(11,065) | $(35,657) | $1,746 | $(8,563) | |||||||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.