Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - Philip Morris International Inc. | ex992recastschedules_2016v.htm |
| 8-K - 8-K - Philip Morris International Inc. | a20180419-8xkxitem701.htm |
Exhibit 99.1
Recast Shipment Volume and Financial Information
2017 vs. 2016
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Terms, Definitions and Explanatory Notes
General • “PMI” refers to Philip Morris International Inc. and its subsidiaries. Trademarks and service marks that are the registered property of, or licensed by, the subsidiaries of PMI, are italicized. • The recast 2017 and 2016 shipment volumes in this document reflect PMI’s new geographic segmentation, announced on September 28, 2017, effective January 1, 2018. PMI’s total shipment volumes presented in this document do not differ from previously disclosed results. • The recast 2017 and 2016 financial information in this document reflect U.S. GAAP changes, effective January 1, 2018, in revenue recognition – excise taxes, pension and other employee benefit cost presentation, and the change of performance measure from Operating Companies Income (defined below) to Operating Income, as well as PMI's new geographic segmentation mentioned above. The foregoing changes impact only the manner in which the results for PMI's performance were previously reported, and have no material impact on PMI's previously reported consolidated financial position or results of operations. • Comparisons are made to the same prior-year period unless otherwise stated. • "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. Financial • Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, net of sales and promotion incentives, and excise taxes. • The recast financials in this document reflect the change in performance measure from Operating Companies Income, or "OCI," to Operating Income, or “OI.” OCI is defined as operating income, excluding general corporate expenses and the amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. • Prior to 2018, management evaluated business segment performance, and allocated resources, based on OCI. Effective January 1, 2018, management evaluates business segment performance, and allocates resources, based on OI. | • “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 net revenues, OI, OI 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 presented in this document should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided in this document. Reduced-Risk Products • "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 an aerosol that contains far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke. • "Heated tobacco units" is the term PMI uses to refer to heated tobacco consumables, which include HEETS, HEETS Marlboro and HEETS FROM MARLBORO, defined collectively as HEETS, as well as Marlboro HeatSticks and Parliament HeatSticks. • Net revenues related to RRPs represent the sale of heated tobacco units, IQOS devices and related accessories, and other nicotine-containing products, primarily e-vapor products, net of sales and promotion incentives, and excise taxes. |
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||
New Geographic Segmentation (effective January 1, 2018) | ||||||||||
European Union | Eastern Europe | Middle East & Africa | South & Southeast Asia | East Asia & Australia | Latin America & Canada | |||||
Andorra | Albania | Algeria | Afghanistan | Australia | Argentina | |||||
Austria | Armenia | Bahrain | Bangladesh | Hong Kong | Bolivia | |||||
Baltic States | Belarus | Central Africa(1) | Cambodia | Japan | Brazil | |||||
Belgium | Bosnia & Herzegovina | Duty Free | East Timor | South Korea | Canada | |||||
Bulgaria | Georgia | Eastern Africa(2) | India | Macau | Caribbean(6) | |||||
Canary Islands | Israel | Egypt | Indonesia | Malaysia | Chile | |||||
Croatia | Kazakhstan | Iraq | Laos | New Zealand | Colombia | |||||
Czech Republic | Kosovo | Jordan | Maldives | People's Republic of China | Costa Rica | |||||
Denmark | Kyrgyzstan | Kuwait | Nepal | Singapore | Dominican Republic | |||||
Finland | Macedonia | Lebanon | Pakistan | South Pacific(5) | Ecuador | |||||
France | Moldova | Libya | Philippines | Taiwan | El Salvador | |||||
Germany | Mongolia | Morocco | Sri Lanka | Guatemala | ||||||
Greece | Montenegro | Oman | Thailand | Honduras | ||||||
Hungary | Russia | Palestine Auth. Area | Vietnam | Mexico | ||||||
Iceland | Serbia | Qatar | Nicaragua | |||||||
Italy | Tajikistan | Saudi Arabia | Panama | |||||||
Luxembourg | Turkmenistan | South Africa | Paraguay | |||||||
Netherlands | Ukraine | Southern Africa(3) | Peru | |||||||
Norway | Uzbekistan | Tunisia | Uruguay | |||||||
Poland | Turkey | Venezuela | ||||||||
Portugal | Turkish Cyprus | |||||||||
Romania | United Arab Emirates (UAE) | |||||||||
Slovak Republic | West Africa(4) | |||||||||
Slovenia | Yemen | |||||||||
Spain | ||||||||||
Sweden | ||||||||||
Switzerland | ||||||||||
United Kingdom | ||||||||||
(1) Central Africa includes Angola, Cameroon, Democratic Republic of the Congo, Equatorial Guinea and Gabon
(2) Eastern Africa includes Djibouti, Ethiopia, Kenya, Malawi, Mozambique, Somalia and Tanzania
(3) Southern Africa includes Botswana, Lesotho, Mauritius, Mayotte, Namibia, Reunion and Swaziland
(4) West Africa includes Benin, Burkina Faso, Cape Verde, The Gambia, Guinea, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo
(5) South Pacific includes Christmas Islands, French Polynesia, Marshall Islands, Nauru, New Caledonia, Palau, Papua New Guinea, Tonga, Vanuatu and other South Pacific islands
(6) Caribbean includes Aruba, Bahamas, Bermuda, Bonaire, Cayman Islands, Curacao, Guadeloupe, Martinique, St. Barth's, St. Maarten, St. Martin and other Caribbean markets
Schedule 1 | |||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||||||||
Shipment Volume by Product Category | |||||||||||||||||||||||||||||||||||
(million units) / (unaudited) | |||||||||||||||||||||||||||||||||||
Quarters Ended March 31 | Quarters Ended June 30 | Quarters Ended September 30 | Quarters Ended December 31 | Full Year Ended December 31 | |||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||||
Cigarettes | |||||||||||||||||||||||||||||||||||
European Union | 42,540 | 45,993 | (7.5 | )% | 49,758 | 50,399 | (1.3 | )% | 49,114 | 52,001 | (5.6 | )% | 45,881 | 45,193 | 1.5 | % | 187,293 | 193,586 | (3.3 | )% | |||||||||||||||
Eastern Europe | 24,596 | 28,810 | (14.6 | )% | 32,081 | 33,638 | (4.6 | )% | 31,749 | 34,230 | (7.2 | )% | 30,972 | 32,778 | (5.5 | )% | 119,398 | 129,456 | (7.8 | )% | |||||||||||||||
Middle East & Africa | 31,978 | 34,316 | (6.8 | )% | 32,333 | 34,694 | (6.8 | )% | 37,088 | 37,942 | (2.3 | )% | 35,360 | 34,985 | 1.1 | % | 136,759 | 141,937 | (3.6 | )% | |||||||||||||||
South & Southeast Asia | 37,899 | 46,312 | (18.2 | )% | 42,025 | 50,404 | (16.6 | )% | 44,731 | 43,180 | 3.6 | % | 46,945 | 45,383 | 3.4 | % | 171,600 | 185,279 | (7.4 | )% | |||||||||||||||
East Asia & Australia | 17,243 | 18,910 | (8.8 | )% | 15,790 | 18,895 | (16.4 | )% | 15,331 | 18,513 | (17.2 | )% | 14,289 | 18,432 | (22.5 | )% | 62,653 | 74,750 | (16.2 | )% | |||||||||||||||
Latin America & Canada | 19,296 | 21,700 | (11.1 | )% | 21,553 | 21,259 | 1.4 | % | 20,452 | 21,185 | (3.5 | )% | 22,922 | 23,794 | (3.7 | )% | 84,223 | 87,938 | (4.2 | )% | |||||||||||||||
Total PMI | 173,552 | 196,041 | (11.5 | )% | 193,540 | 209,289 | (7.5 | )% | 198,465 | 207,051 | (4.1 | )% | 196,369 | 200,565 | (2.1 | )% | 761,926 | 812,946 | (6.3 | )% | |||||||||||||||
Heated Tobacco Units | |||||||||||||||||||||||||||||||||||
European Union | 184 | 16 | +100.0 | % | 392 | 31 | +100.0 | % | 464 | 56 | +100.0 | % | 849 | 121 | +100.0 | % | 1,889 | 224 | +100.0 | % | |||||||||||||||
Eastern Europe | 54 | 2 | +100.0 | % | 117 | 7 | +100.0 | % | 180 | 18 | +100.0 | % | 323 | 37 | +100.0 | % | 674 | 64 | +100.0 | % | |||||||||||||||
Middle East & Africa | 51 | — | — | 112 | 1 | +100.0 | % | 247 | 9 | +100.0 | % | 497 | 26 | +100.0 | % | 907 | 36 | +100.0 | % | ||||||||||||||||
South & Southeast Asia | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
East Asia & Australia | 4,145 | 435 | +100.0 | % | 5,726 | 1,118 | +100.0 | % | 8,826 | 2,005 | +100.0 | % | 14,032 | 3,512 | +100.0 | % | 32,729 | 7,070 | +100.0 | % | |||||||||||||||
Latin America & Canada | 1 | — | — | 3 | — | — | 8 | — | — | 15 | — | — | 27 | — | — | ||||||||||||||||||||
Total PMI | 4,435 | 453 | +100.0 | % | 6,350 | 1,157 | +100.0 | % | 9,725 | 2,088 | +100.0 | % | 15,716 | 3,696 | +100.0 | % | 36,226 | 7,394 | +100.0 | % | |||||||||||||||
Cigarettes and Heated Tobacco Units | |||||||||||||||||||||||||||||||||||
European Union | 42,724 | 46,009 | (7.1 | )% | 50,150 | 50,430 | (0.6 | )% | 49,578 | 52,057 | (4.8 | )% | 46,730 | 45,314 | 3.1 | % | 189,182 | 193,810 | (2.4 | )% | |||||||||||||||
Eastern Europe | 24,650 | 28,812 | (14.4 | )% | 32,198 | 33,645 | (4.3 | )% | 31,929 | 34,248 | (6.8 | )% | 31,295 | 32,815 | (4.6 | )% | 120,072 | 129,520 | (7.3 | )% | |||||||||||||||
Middle East & Africa | 32,029 | 34,316 | (6.7 | )% | 32,445 | 34,695 | (6.5 | )% | 37,335 | 37,951 | (1.6 | )% | 35,857 | 35,011 | 2.4 | % | 137,666 | 141,973 | (3.0 | )% | |||||||||||||||
South & Southeast Asia | 37,899 | 46,312 | (18.2 | )% | 42,025 | 50,404 | (16.6 | )% | 44,731 | 43,180 | 3.6 | % | 46,945 | 45,383 | 3.4 | % | 171,600 | 185,279 | (7.4 | )% | |||||||||||||||
East Asia & Australia | 21,388 | 19,345 | 10.6 | % | 21,516 | 20,013 | 7.5 | % | 24,157 | 20,518 | 17.7 | % | 28,321 | 21,944 | 29.1 | % | 95,382 | 81,820 | 16.6 | % | |||||||||||||||
Latin America & Canada | 19,297 | 21,700 | (11.1 | )% | 21,556 | 21,259 | 1.4 | % | 20,460 | 21,185 | (3.4 | )% | 22,937 | 23,794 | (3.6 | )% | 84,250 | 87,938 | (4.2 | )% | |||||||||||||||
Total PMI | 177,987 | 196,494 | (9.4 | )% | 199,890 | 210,446 | (5.0 | )% | 208,190 | 209,139 | (0.5 | )% | 212,085 | 204,261 | 3.8 | % | 798,152 | 820,340 | (2.7 | )% | |||||||||||||||
Schedule 2 (1/3) | |||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||||||||
PMI Shipment Volume by Brand | |||||||||||||||||||||||||||||||||||
(million units) / (unaudited) | |||||||||||||||||||||||||||||||||||
Quarters Ended March 31 | Quarters Ended June 30 | Quarters Ended September 30 | Quarters Ended December 31 | Full Year Ended December 31 | |||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||||
European Union | |||||||||||||||||||||||||||||||||||
Marlboro | 20,924 | 22,700 | (7.8 | )% | 24,600 | 24,939 | (1.4 | )% | 24,246 | 25,943 | (6.5 | )% | 23,317 | 22,663 | 2.9 | % | 93,088 | 96,245 | (3.3 | )% | |||||||||||||||
L&M | 7,933 | 8,188 | (3.1 | )% | 9,069 | 8,986 | 0.9 | % | 8,990 | 9,454 | (4.9 | )% | 8,269 | 8,063 | 2.6 | % | 34,261 | 34,691 | (1.2 | )% | |||||||||||||||
Chesterfield | 6,496 | 7,148 | (9.1 | )% | 7,772 | 7,907 | (1.7 | )% | 8,002 | 8,055 | (0.7 | )% | 6,818 | 7,029 | (3.0 | )% | 29,087 | 30,140 | (3.5 | )% | |||||||||||||||
Philip Morris | 3,696 | 4,054 | (8.8 | )% | 4,161 | 4,238 | (1.8 | )% | 3,779 | 4,330 | (12.7 | )% | 3,523 | 3,668 | (4.0 | )% | 15,158 | 16,290 | (6.9 | )% | |||||||||||||||
Others | 3,491 | 3,903 | (10.6 | )% | 4,156 | 4,329 | (4.0 | )% | 4,097 | 4,219 | (2.9 | )% | 3,954 | 3,770 | 4.9 | % | 15,699 | 16,220 | (3.2 | )% | |||||||||||||||
Total Cigarettes | 42,540 | 45,993 | (7.5 | )% | 49,758 | 50,399 | (1.3 | )% | 49,114 | 52,001 | (5.6 | )% | 45,881 | 45,193 | 1.5 | % | 187,293 | 193,586 | (3.3 | )% | |||||||||||||||
Heated Tobacco Units | 184 | 16 | +100.0 | % | 392 | 31 | +100.0 | % | 464 | 56 | +100.0 | % | 849 | 121 | +100.0 | % | 1,889 | 224 | +100.0 | % | |||||||||||||||
Total European Union | 42,724 | 46,009 | (7.1 | )% | 50,150 | 50,430 | (0.6 | )% | 49,578 | 52,057 | (4.8 | )% | 46,730 | 45,314 | 3.1 | % | 189,182 | 193,810 | (2.4 | )% | |||||||||||||||
Eastern Europe | |||||||||||||||||||||||||||||||||||
Marlboro | 2,873 | 2,926 | (1.8 | )% | 3,652 | 3,542 | 3.1 | % | 3,931 | 3,966 | (0.9 | )% | 3,777 | 3,677 | 2.7 | % | 14,234 | 14,111 | 0.9 | % | |||||||||||||||
L&M | 3,066 | 3,701 | (17.1 | )% | 4,125 | 4,393 | (6.1 | )% | 4,042 | 4,298 | (6.0 | )% | 3,850 | 4,056 | (5.1 | )% | 15,082 | 16,447 | (8.3 | )% | |||||||||||||||
Bond Street | 7,875 | 8,919 | (11.7 | )% | 9,684 | 10,521 | (8.0 | )% | 9,237 | 10,929 | (15.5 | )% | 8,645 | 10,993 | (21.4 | )% | 35,441 | 41,361 | (14.3 | )% | |||||||||||||||
Parliament | 3,019 | 3,788 | (20.3 | )% | 4,165 | 4,494 | (7.3 | )% | 4,188 | 4,588 | (8.7 | )% | 5,120 | 4,479 | 14.3 | % | 16,492 | 17,349 | (4.9 | )% | |||||||||||||||
Philip Morris | 3,168 | 173 | +100.0 | % | 5,023 | 192 | +100.0 | % | 5,437 | 255 | +100.0 | % | 5,228 | 1,152 | +100.0 | % | 18,856 | 1,772 | +100.0 | % | |||||||||||||||
Others | 4,595 | 9,303 | (50.6 | )% | 5,432 | 10,496 | (48.2 | )% | 4,914 | 10,194 | (51.8 | )% | 4,352 | 8,421 | (48.3 | )% | 19,293 | 38,416 | (49.8 | )% | |||||||||||||||
Total Cigarettes | 24,596 | 28,810 | (14.6 | )% | 32,081 | 33,638 | (4.6 | )% | 31,749 | 34,230 | (7.2 | )% | 30,972 | 32,778 | (5.5 | )% | 119,398 | 129,456 | (7.8 | )% | |||||||||||||||
Heated Tobacco Units | 54 | 2 | +100.0 | % | 117 | 7 | +100.0 | % | 180 | 18 | +100.0 | % | 323 | 37 | +100.0 | % | 674 | 64 | +100.0 | % | |||||||||||||||
Total Eastern Europe | 24,650 | 28,812 | (14.4 | )% | 32,198 | 33,645 | (4.3 | )% | 31,929 | 34,248 | (6.8 | )% | 31,295 | 32,815 | (4.6 | )% | 120,072 | 129,520 | (7.3 | )% | |||||||||||||||
Schedule 2 (2/3) | |||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||||||||
PMI Shipment Volume by Brand | |||||||||||||||||||||||||||||||||||
(million units) / (unaudited) | |||||||||||||||||||||||||||||||||||
Quarters Ended March 31 | Quarters Ended June 30 | Quarters Ended September 30 | Quarters Ended December 31 | Full Year Ended December 31 | |||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||||
Middle East & Africa | |||||||||||||||||||||||||||||||||||
Marlboro | 13,243 | 14,606 | (9.3 | )% | 13,385 | 13,849 | (3.4 | )% | 14,724 | 16,116 | (8.6 | )% | 14,536 | 15,137 | (4.0 | )% | 55,888 | 59,707 | (6.4 | )% | |||||||||||||||
L&M | 8,423 | 9,164 | (8.1 | )% | 7,666 | 8,767 | (12.6 | )% | 8,598 | 9,188 | (6.4 | )% | 7,154 | 8,617 | (17.0 | )% | 31,841 | 35,736 | (10.9 | )% | |||||||||||||||
Bond Street | 257 | 331 | (22.2 | )% | 160 | 381 | (58.1 | )% | 236 | 230 | 2.8 | % | 241 | 250 | (3.4 | )% | 895 | 1,191 | (24.9 | )% | |||||||||||||||
Parliament | 3,522 | 3,514 | 0.2 | % | 4,108 | 4,443 | (7.5 | )% | 4,522 | 4,673 | (3.2 | )% | 4,655 | 3,960 | 17.5 | % | 16,807 | 16,590 | 1.3 | % | |||||||||||||||
Philip Morris | 69 | 58 | 18.8 | % | 51 | 56 | (9.0 | )% | 64 | 89 | (27.9 | )% | 46 | 83 | (44.7 | )% | 230 | 287 | (19.6 | )% | |||||||||||||||
Others | 6,464 | 6,643 | (2.7 | )% | 6,963 | 7,198 | (3.3 | )% | 8,944 | 7,646 | 17.0 | % | 8,728 | 6,938 | 25.8 | % | 31,098 | 28,426 | 9.4 | % | |||||||||||||||
Total Cigarettes | 31,978 | 34,316 | (6.8 | )% | 32,333 | 34,694 | (6.8 | )% | 37,088 | 37,942 | (2.3 | )% | 35,360 | 34,985 | 1.1 | % | 136,759 | 141,937 | (3.6 | )% | |||||||||||||||
Heated Tobacco Units | 51 | — | — | 112 | 1 | +100.0 | % | 247 | 9 | +100.0 | % | 497 | 26 | +100.0 | % | 907 | 36 | +100.0 | % | ||||||||||||||||
Total Middle East & Africa | 32,029 | 34,316 | (6.7 | )% | 32,445 | 34,695 | (6.5 | )% | 37,335 | 37,951 | (1.6 | )% | 35,857 | 35,011 | 2.4 | % | 137,666 | 141,973 | (3.0 | )% | |||||||||||||||
South & Southeast Asia | |||||||||||||||||||||||||||||||||||
Marlboro | 10,215 | 10,359 | (1.4 | )% | 11,386 | 11,426 | (0.3 | )% | 11,281 | 10,700 | 5.4 | % | 12,704 | 10,798 | 17.7 | % | 45,587 | 43,284 | 5.3 | % | |||||||||||||||
Lark | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Parliament | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Others | 27,684 | 35,953 | (23.0 | )% | 30,639 | 38,978 | (21.4 | )% | 33,450 | 32,480 | 3.0 | % | 34,241 | 34,585 | (1.0 | )% | 126,013 | 141,995 | (11.3 | )% | |||||||||||||||
Total Cigarettes | 37,899 | 46,312 | (18.2 | )% | 42,025 | 50,404 | (16.6 | )% | 44,731 | 43,180 | 3.6 | % | 46,945 | 45,383 | 3.4 | % | 171,600 | 185,279 | (7.4 | )% | |||||||||||||||
Heated Tobacco Units | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total South & Southeast Asia | 37,899 | 46,312 | (18.2 | )% | 42,025 | 50,404 | (16.6 | )% | 44,731 | 43,180 | 3.6 | % | 46,945 | 45,383 | 3.4 | % | 171,600 | 185,279 | (7.4 | )% | |||||||||||||||
Schedule 2 (3/3) | |||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||||||||
PMI Shipment Volume by Brand | |||||||||||||||||||||||||||||||||||
(million units) / (unaudited) | |||||||||||||||||||||||||||||||||||
Quarters Ended March 31 | Quarters Ended June 30 | Quarters Ended September 30 | Quarters Ended December 31 | Full Year Ended December 31 | |||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||||
East Asia & Australia | |||||||||||||||||||||||||||||||||||
Marlboro | 7,519 | 8,514 | (11.7 | )% | 6,908 | 8,011 | (13.8 | )% | 6,946 | 8,267 | (16.0 | )% | 6,487 | 8,388 | (22.7 | )% | 27,859 | 33,180 | (16.0 | )% | |||||||||||||||
Lark | 4,566 | 4,302 | 6.1 | % | 3,291 | 4,845 | (32.1 | )% | 3,539 | 4,274 | (17.2 | )% | 3,078 | 4,178 | (26.3 | )% | 14,474 | 17,600 | (17.8 | )% | |||||||||||||||
Parliament | 2,326 | 2,410 | (3.5 | )% | 2,532 | 2,580 | (1.8 | )% | 2,269 | 2,545 | (10.8 | )% | 2,096 | 2,608 | (19.6 | )% | 9,224 | 10,142 | (9.1 | )% | |||||||||||||||
Others | 2,832 | 3,684 | (23.1 | )% | 3,059 | 3,459 | (11.6 | )% | 2,577 | 3,427 | (24.8 | )% | 2,628 | 3,258 | (19.3 | )% | 11,096 | 13,828 | (19.8 | )% | |||||||||||||||
Total Cigarettes | 17,243 | 18,910 | (8.8 | )% | 15,790 | 18,895 | (16.4 | )% | 15,331 | 18,513 | (17.2 | )% | 14,289 | 18,432 | (22.5 | )% | 62,653 | 74,750 | (16.2 | )% | |||||||||||||||
Heated Tobacco Units | 4,145 | 435 | +100.0 | % | 5,726 | 1,118 | +100.0 | % | 8,826 | 2,005 | +100.0 | % | 14,032 | 3,512 | +100.0 | % | 32,729 | 7,070 | +100.0 | % | |||||||||||||||
Total East Asia & Australia | 21,388 | 19,345 | 10.6 | % | 21,516 | 20,013 | 7.5 | % | 24,157 | 20,518 | 17.7 | % | 28,321 | 21,944 | 29.1 | % | 95,382 | 81,820 | 16.6 | % | |||||||||||||||
Latin America & Canada | |||||||||||||||||||||||||||||||||||
Marlboro | 7,625 | 8,880 | (14.1 | )% | 8,899 | 8,336 | 6.7 | % | 7,758 | 8,345 | (7.0 | )% | 9,429 | 9,632 | (2.1 | )% | 33,711 | 35,194 | (4.2 | )% | |||||||||||||||
Philip Morris | 3,440 | 4,631 | (25.7 | )% | 3,210 | 4,126 | (22.2 | )% | 3,335 | 3,793 | (12.1 | )% | 3,335 | 3,912 | (14.8 | )% | 13,320 | 16,463 | (19.1 | )% | |||||||||||||||
Chesterfield | 1,887 | 171 | +100.0 | % | 2,111 | 223 | +100.0 | % | 2,537 | 667 | +100.0 | % | 3,317 | 1,565 | +100.0 | % | 9,852 | 2,626 | +100.0 | % | |||||||||||||||
Others | 6,344 | 8,018 | (20.9 | )% | 7,333 | 8,574 | (14.5 | )% | 6,822 | 8,380 | (18.6 | )% | 6,841 | 8,685 | (21.2 | )% | 27,340 | 33,655 | (18.8 | )% | |||||||||||||||
Total Cigarettes | 19,296 | 21,700 | (11.1 | )% | 21,553 | 21,259 | 1.4 | % | 20,452 | 21,185 | (3.5 | )% | 22,922 | 23,794 | (3.7 | )% | 84,223 | 87,938 | (4.2 | )% | |||||||||||||||
Heated Tobacco Units | 1 | — | — | 3 | — | — | 8 | — | — | 15 | — | — | 27 | — | — | ||||||||||||||||||||
Total Latin America & Canada | 19,297 | 21,700 | (11.1 | )% | 21,556 | 21,259 | 1.4 | % | 20,460 | 21,185 | (3.4 | )% | 22,937 | 23,794 | (3.6 | )% | 84,250 | 87,938 | (4.2 | )% | |||||||||||||||
Schedule 3 | |||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||
Diluted Earnings Per Share (EPS) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Quarters Ended | Quarters Ended | Quarters Ended | Quarters Ended | Full Year Ended | |||||||||||||||||||||
Diluted Earnings Per Share | March 31 | June 30 | September 30 | December 31 | December 31 | ||||||||||||||||||||
2017 Diluted Earnings Per Share (1) | $ 1.02 | $ 1.14 | $ 1.27 | $ 0.44 | $ 3.88 | ||||||||||||||||||||
2016 Diluted Earnings Per Share (1) | $ 0.98 | $ 1.15 | $ 1.25 | $ 1.10 | $ 4.48 | ||||||||||||||||||||
Change | $ 0.04 | $ (0.01) | $ 0.02 | $ (0.66) | $ (0.60) | ||||||||||||||||||||
% Change | 4.1 | % | (0.9 | )% | 1.6 | % | (60.0 | )% | (13.4 | )% | |||||||||||||||
Reconciliation: | |||||||||||||||||||||||||
2016 Diluted Earnings Per Share (1) | $ 0.98 | $ 1.15 | $ 1.25 | $ 1.10 | $ 4.48 | ||||||||||||||||||||
2016 Asset impairment and exit costs | — | — | — | — | — | ||||||||||||||||||||
2016 Tax items | — | — | — | — | — | ||||||||||||||||||||
2017 Asset impairment and exit costs | — | — | — | — | — | ||||||||||||||||||||
2017 Tax items | 0.04 | — | — | (0.88 | ) | (0.84 | ) | ||||||||||||||||||
Currency | — | (0.11 | ) | (0.12 | ) | 0.01 | (0.21 | ) | |||||||||||||||||
Interest | 0.02 | 0.01 | — | (0.02 | ) | 0.01 | |||||||||||||||||||
Change in tax rate | 0.01 | 0.01 | (0.02 | ) | (0.04 | ) | (0.03 | ) | |||||||||||||||||
Operations (2) | (0.03 | ) | 0.08 | 0.16 | 0.27 | 0.47 | |||||||||||||||||||
2017 Diluted Earnings Per Share (1) | $ 1.02 | $ 1.14 | $ 1.27 | $ 0.44 | $ 3.88 | ||||||||||||||||||||
(1) Basic and diluted EPS were calculated using the following (in millions): | |||||||||||||||||||||||||
Quarters Ended | Quarters Ended | Quarters Ended | Quarters Ended | Full Year Ended | |||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | December 31 | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Net Earnings attributable to PMI | $ 1,590 | $ 1,530 | $ 1,781 | $ 1,788 | $ 1,970 | $ 1,938 | $ 694 | $ 1,711 | $ 6,035 | $ 6,967 | |||||||||||||||
Less distributed and undistributed earnings attributable to share-based payment awards | 3 | 5 | 5 | 5 | 4 | 5 | 4 | 5 | 14 | 19 | |||||||||||||||
Net Earnings for basic and diluted EPS | $ 1,587 | $ 1,525 | $ 1,776 | $ 1,783 | $ 1,966 | $ 1,933 | $ 690 | $ 1,706 | $ 6,021 | $ 6,948 | |||||||||||||||
Weighted-average shares for basic EPS | 1,552 | 1,550 | 1,553 | 1,551 | 1,553 | 1,551 | 1,553 | 1,552 | 1,552 | 1,551 | |||||||||||||||
Plus Contingently Issuable Performance Stock Units | 1 | — | 1 | — | 1 | — | 1 | — | 1 | — | |||||||||||||||
Weighted-average shares for diluted EPS | 1,553 | 1,550 | 1,554 | 1,551 | 1,554 | 1,551 | 1,554 | 1,552 | 1,553 | 1,551 | |||||||||||||||
(2) Includes the impact of shares outstanding and share-based payments | |||||||||||||||||||||||||
Schedule 4 | ||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. 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) | ||||||||||||||||||||||||||||||||||
Quarters Ended | Quarters Ended | Quarters Ended | Quarters Ended | Full Year Ended | ||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | December 31 | ||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||||||
Reported Diluted EPS | $ 1.02 | $ 0.98 | 4.1 | % | $ 1.14 | $ 1.15 | (0.9 | )% | $ 1.27 | $ 1.25 | 1.6 | % | $ 0.44 | $ 1.10 | (60.0 | )% | $ 3.88 | $ 4.48 | (13.4 | )% | ||||||||||||||
Currency | — | (0.11 | ) | (0.12 | ) | 0.01 | (0.21 | ) | ||||||||||||||||||||||||||
Reported Diluted EPS, excluding Currency | $ 1.02 | $ 0.98 | 4.1 | % | $ 1.25 | $ 1.15 | 8.7 | % | $ 1.39 | $ 1.25 | 11.2 | % | $ 0.43 | $ 1.10 | (60.9 | )% | $ 4.09 | $ 4.48 | (8.7 | )% | ||||||||||||||
Quarters Ended | Quarters Ended | Quarters Ended | Quarters Ended | Full Year Ended | ||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | December 31 | ||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||||||
Reported Diluted EPS | $ 1.02 | $ 0.98 | 4.1 | % | $ 1.14 | $ 1.15 | (0.9 | )% | $ 1.27 | $ 1.25 | 1.6 | % | $ 0.44 | $ 1.10 | (60.0 | )% | $ 3.88 | $ 4.48 | (13.4 | )% | ||||||||||||||
Asset impairment and exit costs | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Tax items | (0.04 | ) | — | — | — | — | — | 0.88 | — | 0.84 | — | |||||||||||||||||||||||
Adjusted Diluted EPS | $ 0.98 | $ 0.98 | — | $ 1.14 | $ 1.15 | (0.9 | )% | $ 1.27 | $ 1.25 | 1.6 | % | $ 1.32 | $ 1.10 | 20.0 | % | $ 4.72 | $ 4.48 | 5.4 | % | |||||||||||||||
Currency | — | (0.11 | ) | (0.12 | ) | 0.01 | (0.21 | ) | ||||||||||||||||||||||||||
Adjusted Diluted EPS, excluding Currency | $ 0.98 | $ 0.98 | — | $ 1.25 | $ 1.15 | 8.7 | % | $ 1.39 | $ 1.25 | 11.2 | % | $ 1.31 | $ 1.10 | 19.1 | % | $ 4.93 | $ 4.48 | 10.0 | % | |||||||||||||||
Schedule 5 (1/5) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Net Revenues | Currency | Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions | Quarters Ended March 31 | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||||||||||
2017 | Combustible Products | 2016 | % Change | ||||||||||||||||||
$ 1,709 | $ (55) | $ 1,764 | $ — | $ 1,764 | European Union | $ 1,855 | (7.9 | )% | (4.9 | )% | (4.9 | )% | |||||||||
513 | 57 | 456 | — | 456 | Eastern Europe | 492 | 4.3 | % | (7.4 | )% | (7.4 | )% | |||||||||
957 | (157 | ) | 1,114 | — | 1,114 | Middle East & Africa | 1,111 | (13.9 | )% | 0.3 | % | 0.3 | % | ||||||||
1,031 | 11 | 1,020 | — | 1,020 | South & Southeast Asia | 1,058 | (2.6 | )% | (3.6 | )% | (3.6 | )% | |||||||||
813 | 27 | 786 | — | 786 | East Asia & Australia | 863 | (5.7 | )% | (8.9 | )% | (8.9 | )% | |||||||||
605 | (22 | ) | 627 | — | 627 | Latin America & Canada | 650 | (6.8 | )% | (3.5 | )% | (3.5 | )% | ||||||||
$ 5,629 | $ (137) | $ 5,766 | — | $ 5,766 | Total Combustible | $ 6,028 | (6.6 | )% | (4.3 | )% | (4.3 | )% | |||||||||
2017 | Reduced-Risk Products | 2016 | % Change | ||||||||||||||||||
$ 31 | $ (1) | $ 33 | $ — | $ 33 | European Union | $ 9 | +100 | % | +100 | % | +100 | % | |||||||||
3 | — | 3 | — | 3 | Eastern Europe | (1 | ) | +100 | % | +100 | % | +100 | % | ||||||||
4 | — | 4 | — | 4 | Middle East & Africa | — | — | — | — | ||||||||||||
— | — | — | — | — | South & Southeast Asia | — | — | — | — | ||||||||||||
396 | 18 | 379 | — | 379 | East Asia & Australia | 47 | +100 | % | +100 | % | +100 | % | |||||||||
— | — | — | — | — | Latin America & Canada | — | — | — | — | ||||||||||||
$ 435 | $ 17 | $ 418 | — | $ 418 | Total RRPs | $ 55 | +100 | % | +100 | % | +100 | % | |||||||||
2017 | Total | 2016 | % Change | ||||||||||||||||||
$ 1,740 | $ (55) | $ 1,795 | $ — | $ 1,795 | European Union | $ 1,863 | (6.6 | )% | (3.7 | )% | (3.7 | )% | |||||||||
516 | 58 | 458 | — | 458 | Eastern Europe | 491 | 5.1 | % | (6.7 | )% | (6.7 | )% | |||||||||
961 | (157 | ) | 1,118 | — | 1,118 | Middle East & Africa | 1,111 | (13.5 | )% | 0.6 | % | 0.6 | % | ||||||||
1,031 | 11 | 1,020 | — | 1,020 | South & Southeast Asia | 1,058 | (2.6 | )% | (3.6 | )% | (3.6 | )% | |||||||||
1,210 | 45 | 1,165 | — | 1,165 | East Asia & Australia | 910 | 33.0 | % | 28.0 | % | 28.0 | % | |||||||||
606 | (22 | ) | 628 | — | 628 | Latin America & Canada | 650 | (6.8 | )% | (3.4 | )% | (3.4 | )% | ||||||||
$ 6,064 | $ (120) | $ 6,184 | — | $ 6,184 | Total PMI | $ 6,083 | (0.3 | )% | 1.7 | % | 1.7 | % | |||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. | |||||||||||||||||||||
Schedule 5 (2/5) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Net Revenues | Currency | Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions | Quarters Ended June 30 | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||||||||||
2017 | Combustible Products | 2016 | % Change | ||||||||||||||||||
$ 2,060 | $ (89) | $ 2,150 | $ — | $ 2,150 | European Union | $ 2,143 | (3.8 | )% | 0.3 | % | 0.3 | % | |||||||||
691 | 73 | 618 | — | 618 | Eastern Europe | 616 | 12.2 | % | 0.4 | % | 0.4 | % | |||||||||
968 | (134 | ) | 1,102 | — | 1,102 | Middle East & Africa | 1,048 | (7.7 | )% | 5.1 | % | 5.1 | % | ||||||||
1,046 | (18 | ) | 1,064 | — | 1,064 | South & Southeast Asia | 1,129 | (7.4 | )% | (5.8 | )% | (5.8 | )% | ||||||||
790 | (1 | ) | 790 | — | 790 | East Asia & Australia | 892 | (11.5 | )% | (11.4 | )% | (11.4 | )% | ||||||||
748 | (21 | ) | 768 | — | 768 | Latin America & Canada | 697 | 7.3 | % | 10.2 | % | 10.2 | % | ||||||||
$ 6,302 | $ (190) | $ 6,493 | — | $ 6,493 | Total Combustible | $ 6,526 | (3.4 | )% | (0.5 | )% | (0.5 | )% | |||||||||
2017 | Reduced-Risk Products | 2016 | % Change | ||||||||||||||||||
$ 50 | $ (2) | $ 52 | $ — | $ 52 | European Union | $ 11 | +100 | % | +100 | % | +100 | % | |||||||||
6 | — | 6 | — | 6 | Eastern Europe | — | — | — | — | ||||||||||||
10 | — | 11 | — | 11 | Middle East & Africa | — | — | — | — | ||||||||||||
— | — | — | — | — | South & Southeast Asia | — | — | — | — | ||||||||||||
549 | (2 | ) | 551 | — | 551 | East Asia & Australia | 111 | +100 | % | +100 | % | +100 | % | ||||||||
1 | — | 1 | — | 1 | Latin America & Canada | — | — | — | — | ||||||||||||
$ 615 | $ (4) | $ 620 | — | $ 620 | Total RRPs | $ 123 | +100 | % | +100 | % | +100 | % | |||||||||
2017 | Total | 2016 | % Change | ||||||||||||||||||
$ 2,110 | $ (92) | $ 2,202 | $ — | $ 2,202 | European Union | $ 2,155 | (2.1 | )% | 2.2 | % | 2.2 | % | |||||||||
697 | 72 | 625 | — | 625 | Eastern Europe | 616 | 13.1 | % | 1.5 | % | 1.5 | % | |||||||||
978 | (134 | ) | 1,112 | — | 1,112 | Middle East & Africa | 1,048 | (6.7 | )% | 6.1 | % | 6.1 | % | ||||||||
1,046 | (18 | ) | 1,064 | — | 1,064 | South & Southeast Asia | 1,129 | (7.4 | )% | (5.8 | )% | (5.8 | )% | ||||||||
1,338 | (3 | ) | 1,341 | — | 1,341 | East Asia & Australia | 1,004 | 33.3 | % | 33.6 | % | 33.6 | % | ||||||||
748 | (20 | ) | 768 | — | 768 | Latin America & Canada | 697 | 7.3 | % | 10.2 | % | 10.2 | % | ||||||||
$ 6,917 | $ (195) | $ 7,112 | — | $ 7,112 | Total PMI | $ 6,649 | 4.0 | % | 7.0 | % | 7.0 | % | |||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. | |||||||||||||||||||||
Schedule 5 (3/5) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Net Revenues | Currency | Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions | Quarters Ended September 30 | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||||||||||
2017 | Combustible Products | 2016 | % Change | ||||||||||||||||||
$ 2,139 | $ 53 | $ 2,086 | $ — | $ 2,086 | European Union | $ 2,188 | (2.2 | )% | (4.6 | )% | (4.6 | )% | |||||||||
696 | 46 | 651 | — | 651 | Eastern Europe | 684 | 1.8 | % | (4.8 | )% | (4.8 | )% | |||||||||
1,045 | (153 | ) | 1,198 | — | 1,198 | Middle East & Africa | 1,248 | (16.2 | )% | (4.0 | )% | (4.0 | )% | ||||||||
1,129 | (19 | ) | 1,148 | — | 1,148 | South & Southeast Asia | 1,015 | 11.2 | % | 13.1 | % | 13.1 | % | ||||||||
760 | (7 | ) | 767 | — | 767 | East Asia & Australia | 926 | (17.9 | )% | (17.2 | )% | (17.2 | )% | ||||||||
755 | (14 | ) | 769 | — | 769 | Latin America & Canada | 710 | 6.4 | % | 8.4 | % | 8.4 | % | ||||||||
$ 6,526 | $ (95) | $ 6,620 | — | $ 6,620 | Total Combustible | $ 6,770 | (3.6 | )% | (2.2 | )% | (2.2 | )% | |||||||||
2017 | Reduced-Risk Products | 2016 | % Change | ||||||||||||||||||
$ 65 | $ 1 | $ 63 | $ — | $ 63 | European Union | $ 13 | +100 | % | 100 | % | +100 | % | |||||||||
9 | — | 9 | — | 9 | Eastern Europe | 3 | +100 | % | +100 | % | +100 | % | |||||||||
31 | (1 | ) | 32 | — | 32 | Middle East & Africa | 1 | +100 | % | +100 | % | +100 | % | ||||||||
— | — | — | — | — | South & Southeast Asia | — | — | — | — | ||||||||||||
841 | (42 | ) | 883 | — | 883 | East Asia & Australia | 196 | +100 | % | +100 | % | +100 | % | ||||||||
1 | — | 1 | — | 1 | Latin America & Canada | — | — | — | — | ||||||||||||
$ 947 | $ (41) | $ 988 | — | $ 988 | Total RRPs | $ 212 | +100 | % | +100 | % | +100 | % | |||||||||
2017 | Total | 2016 | % Change | ||||||||||||||||||
$ 2,204 | $ 53 | $ 2,151 | $ — | $ 2,151 | European Union | $ 2,200 | 0.2 | % | (2.2 | )% | (2.2 | )% | |||||||||
705 | 46 | 659 | — | 659 | Eastern Europe | 687 | 2.6 | % | (4.1 | )% | (4.1 | )% | |||||||||
1,078 | (153 | ) | 1,231 | — | 1,231 | Middle East & Africa | 1,249 | (13.7 | )% | (1.4 | )% | (1.4 | )% | ||||||||
1,129 | (19 | ) | 1,148 | — | 1,148 | South & Southeast Asia | 1,015 | 11.2 | % | 13.1 | % | 13.1 | % | ||||||||
1,601 | (49 | ) | 1,650 | — | 1,650 | East Asia & Australia | 1,121 | 42.8 | % | 47.2 | % | 47.2 | % | ||||||||
756 | (14 | ) | 770 | — | 770 | Latin America & Canada | 710 | 6.5 | % | 8.5 | % | 8.5 | % | ||||||||
$ 7,473 | $ (136) | $ 7,609 | — | $ 7,609 | Total PMI | $ 6,982 | 7.0 | % | 9.0 | % | 9.0 | % | |||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. | |||||||||||||||||||||
Schedule 5 (4/5) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Net Revenues | Currency | Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions | Quarters Ended December 31 | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||||||||||
2017 | Combustible Products | 2016 | % Change | ||||||||||||||||||
$ 2,140 | $ 130 | $ 2,009 | $ — | $ 2,009 | European Union | $ 1,919 | 11.5 | % | 4.7 | % | 4.7 | % | |||||||||
756 | 51 | 705 | — | 705 | Eastern Europe | 686 | 10.2 | % | 2.8 | % | 2.8 | % | |||||||||
923 | (73 | ) | 996 | — | 996 | Middle East & Africa | 1,106 | (16.5 | )% | (9.9 | )% | (9.9 | )% | ||||||||
1,211 | (37 | ) | 1,248 | — | 1,248 | South & Southeast Asia | 1,194 | 1.4 | % | 4.5 | % | 4.5 | % | ||||||||
793 | 1 | 792 | — | 792 | East Asia & Australia | 938 | (15.4 | )% | (15.5 | )% | (15.5 | )% | |||||||||
828 | 2 | 826 | — | 826 | Latin America & Canada | 785 | 5.5 | % | 5.3 | % | 5.3 | % | |||||||||
$ 6,651 | $ 75 | $ 6,576 | — | $ 6,576 | Total Combustible | $ 6,628 | 0.3 | % | (0.8 | )% | (0.8 | )% | |||||||||
2017 | Reduced-Risk Products | 2016 | % Change | ||||||||||||||||||
$ 124 | $ 7 | $ 116 | $ — | $ 116 | European Union | $ 25 | +100 | % | +100 | % | +100 | % | |||||||||
36 | 2 | 34 | — | 34 | Eastern Europe | 4 | +100 | % | +100 | % | +100 | % | |||||||||
49 | (3 | ) | 51 | — | 51 | Middle East & Africa | 2 | +100 | % | +100 | % | +100 | % | ||||||||
— | — | — | — | — | South & Southeast Asia | — | — | — | — | ||||||||||||
1,432 | (68 | ) | 1,500 | — | 1,500 | East Asia & Australia | 312 | +100 | % | +100 | % | +100 | % | ||||||||
3 | — | 3 | — | 3 | Latin America & Canada | — | — | — | — | ||||||||||||
$ 1,643 | $ (60) | $ 1,704 | — | $ 1,704 | Total RRPs | $ 343 | +100 | % | +100 | % | +100 | % | |||||||||
2017 | Total | 2016 | % Change | ||||||||||||||||||
$ 2,264 | $ 139 | $ 2,125 | $ — | $ 2,125 | European Union | $ 1,944 | 16.5 | % | 9.3 | % | 9.3 | % | |||||||||
793 | 53 | 740 | — | 740 | Eastern Europe | 690 | 14.9 | % | 7.2 | % | 7.2 | % | |||||||||
971 | (76 | ) | 1,047 | — | 1,047 | Middle East & Africa | 1,108 | (12.4 | )% | (5.5 | )% | (5.5 | )% | ||||||||
1,211 | (37 | ) | 1,248 | — | 1,248 | South & Southeast Asia | 1,194 | 1.4 | % | 4.5 | % | 4.5 | % | ||||||||
2,224 | (67 | ) | 2,291 | — | 2,291 | East Asia & Australia | 1,250 | 77.9 | % | 83.3 | % | 83.3 | % | ||||||||
831 | 2 | 829 | — | 829 | Latin America & Canada | 785 | 5.9 | % | 5.6 | % | 5.6 | % | |||||||||
$ 8,294 | $ 14 | $ 8,280 | — | $ 8,280 | Total PMI | $ 6,971 | 19.0 | % | 18.8 | % | 18.8 | % | |||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. | |||||||||||||||||||||
Schedule 5 (5/5) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Net Revenues | Currency | Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions | Full Year Ended December 31 | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||||||||||
2017 | Combustible Products | 2016 | % Change | ||||||||||||||||||
$ 8,048 | $ 39 | $ 8,009 | $ — | $ 8,009 | European Union | $ 8,105 | (0.7 | )% | (1.2 | )% | (1.2 | )% | |||||||||
2,657 | 227 | 2,430 | — | 2,430 | Eastern Europe | 2,478 | 7.2 | % | (1.9 | )% | (1.9 | )% | |||||||||
3,893 | (517 | ) | 4,410 | — | 4,410 | Middle East & Africa | 4,513 | (13.7 | )% | (2.3 | )% | (2.3 | )% | ||||||||
4,417 | (63 | ) | 4,480 | — | 4,480 | South & Southeast Asia | 4,396 | 0.5 | % | 1.9 | % | 1.9 | % | ||||||||
3,156 | 21 | 3,135 | — | 3,135 | East Asia & Australia | 3,619 | (12.8 | )% | (13.4 | )% | (13.4 | )% | |||||||||
2,937 | (54 | ) | 2,991 | — | 2,991 | Latin America & Canada | 2,841 | 3.4 | % | 5.3 | % | 5.3 | % | ||||||||
$ 25,107 | $ (348) | $ 25,456 | — | $ 25,456 | Total Combustible | $ 25,952 | (3.3 | )% | (1.9 | )% | (1.9 | )% | |||||||||
2017 | Reduced-Risk Products | 2016 | % Change | ||||||||||||||||||
$ 269 | $ 5 | $ 264 | $ — | $ 264 | European Union | $ 57 | +100 | % | +100 | % | +100 | % | |||||||||
55 | 3 | 52 | — | 52 | Eastern Europe | 6 | +100 | % | +100 | % | +100 | % | |||||||||
94 | (3 | ) | 98 | — | 98 | Middle East & Africa | 4 | +100 | % | +100 | % | +100 | % | ||||||||
— | — | — | — | — | South & Southeast Asia | — | — | — | — | ||||||||||||
3,218 | (94 | ) | 3,312 | — | 3,312 | East Asia & Australia | 666 | +100 | % | +100 | % | +100 | % | ||||||||
4 | — | 4 | — | 4 | Latin America & Canada | 1 | +100 | % | +100 | % | +100 | % | |||||||||
$ 3,640 | $ (89) | $ 3,729 | — | $ 3,729 | Total RRPs | $ 733 | +100 | % | +100 | % | +100 | % | |||||||||
2017 | Total | 2016 | % Change | ||||||||||||||||||
$ 8,318 | $ 45 | $ 8,273 | $ — | $ 8,273 | European Union | $ 8,162 | 1.9 | % | 1.4 | % | 1.4 | % | |||||||||
2,711 | 229 | 2,482 | — | 2,482 | Eastern Europe | 2,484 | 9.1 | % | (0.1 | )% | (0.1 | )% | |||||||||
3,988 | (520 | ) | 4,508 | — | 4,508 | Middle East & Africa | 4,516 | (11.7 | )% | (0.2 | )% | (0.2 | )% | ||||||||
4,417 | (63 | ) | 4,480 | — | 4,480 | South & Southeast Asia | 4,396 | 0.5 | % | 1.9 | % | 1.9 | % | ||||||||
6,373 | (74 | ) | 6,447 | — | 6,447 | East Asia & Australia | 4,285 | 48.7 | % | 50.5 | % | 50.5 | % | ||||||||
2,941 | (54 | ) | 2,995 | — | 2,995 | Latin America & Canada | 2,842 | 3.5 | % | 5.4 | % | 5.4 | % | ||||||||
$ 28,748 | $ (437) | $ 29,185 | — | $ 29,185 | Total PMI | $ 26,685 | 7.7 | % | 9.4 | % | 9.4 | % | |||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. | |||||||||||||||||||||
Schedule 6 (1/2) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Adjustments of Operating Income for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Operating Income | Currency | Operating Income excluding Currency | Acquisitions | Operating Income excluding Currency & Acquisitions | Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | |||||||||||||
2017 | Quarters Ended March 31 | 2016 | % Change | ||||||||||||||||||
$ 748 | $ (27) | $ 775 | $ — | $ 775 | European Union | $ 885 | (15.5 | )% | (12.4 | )% | (12.4 | )% | |||||||||
159 | 35 | 124 | — | 124 | Eastern Europe | 137 | 16.1 | % | (9.5 | )% | (9.5 | )% | |||||||||
491 | (47 | ) | 538 | — | 538 | Middle East & Africa | 476 | 3.2 | % | 13.0 | % | 13.0 | % | ||||||||
370 | 12 | 358 | — | 358 | South & Southeast Asia | 375 | (1.3 | )% | (4.5 | )% | (4.5 | )% | |||||||||
472 | 42 | 430 | — | 430 | East Asia & Australia | 393 | 20.1 | % | 9.4 | % | 9.4 | % | |||||||||
176 | (26 | ) | 202 | — | 202 | Latin America & Canada | 230 | (23.5 | )% | (12.2 | )% | (12.2 | )% | ||||||||
$ 2,416 | $ (11) | $ 2,427 | — | $ 2,427 | Total PMI | $ 2,496 | (3.2 | )% | (2.8 | )% | (2.8 | )% | |||||||||
2017 | Quarters Ended June 30 | 2016 | % Change | ||||||||||||||||||
$ 944 | $ (61) | $ 1,005 | $ — | $ 1,005 | European Union | $ 1,053 | (10.4 | )% | (4.6 | )% | (4.6 | )% | |||||||||
224 | 15 | 209 | — | 209 | Eastern Europe | 223 | 0.4 | % | (6.3 | )% | (6.3 | )% | |||||||||
477 | (104 | ) | 581 | — | 581 | Middle East & Africa | 531 | (10.2 | )% | 9.4 | % | 9.4 | % | ||||||||
319 | (15 | ) | 334 | — | 334 | South & Southeast Asia | 351 | (9.1 | )% | (4.8 | )% | (4.8 | )% | ||||||||
510 | (10 | ) | 520 | — | 520 | East Asia & Australia | 394 | 29.4 | % | 32.0 | % | 32.0 | % | ||||||||
263 | (26 | ) | 289 | — | 289 | Latin America & Canada | 222 | 18.5 | % | 30.2 | % | 30.2 | % | ||||||||
$ 2,737 | $ (201) | $ 2,938 | — | $ 2,938 | Total PMI | $ 2,774 | (1.3 | )% | 5.9 | % | 5.9 | % | |||||||||
2017 | Quarters Ended September 30 | 2016 | % Change | ||||||||||||||||||
$ 1,025 | $ 8 | $ 1,017 | $ — | $ 1,017 | European Union | $ 1,100 | (6.8 | )% | (7.5 | )% | (7.5 | )% | |||||||||
244 | 36 | 208 | — | 208 | Eastern Europe | 256 | (4.7 | )% | (18.8 | )% | (18.8 | )% | |||||||||
495 | (122 | ) | 617 | — | 617 | Middle East & Africa | 663 | (25.3 | )% | (6.9 | )% | (6.9 | )% | ||||||||
411 | (11 | ) | 422 | — | 422 | South & Southeast Asia | 329 | 24.9 | % | 28.3 | % | 28.3 | % | ||||||||
648 | (44 | ) | 692 | — | 692 | East Asia & Australia | 423 | 53.2 | % | 63.6 | % | 63.6 | % | ||||||||
265 | (8 | ) | 273 | — | 273 | Latin America & Canada | 225 | 17.8 | % | 21.3 | % | 21.3 | % | ||||||||
$ 3,088 | $ (141) | $ 3,229 | — | $ 3,229 | Total PMI | $ 2,996 | 3.1 | % | 7.8 | % | 7.8 | % | |||||||||
Schedule 6 (2/2) | |||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Adjustments of Operating Income for the Impact of Currency and Acquisitions | |||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||
Operating Income | Currency | Operating Income excluding Currency | Acquisitions | Operating Income excluding Currency & Acquisitions | Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | |||||||||||||
2017 | Quarters Ended December 31 | 2016 | % Change | ||||||||||||||||||
$ 974 | $ 37 | $ 937 | $ — | $ 937 | European Union | $ 882 | 10.4 | % | 6.2 | % | 6.2 | % | |||||||||
260 | (2 | ) | 262 | — | 262 | Eastern Europe | 274 | (5.1 | )% | (4.4 | )% | (4.4 | )% | ||||||||
421 | 267 | 154 | — | 154 | Middle East & Africa | 320 | 31.6 | % | (51.9 | )% | (51.9 | )% | |||||||||
414 | (33 | ) | 447 | — | 447 | South & Southeast Asia | 419 | (1.2 | )% | 6.7 | % | 6.7 | % | ||||||||
978 | (63 | ) | 1,041 | — | 1,041 | East Asia & Australia | 481 | +100 | % | +100 | % | +100 | % | ||||||||
293 | (10 | ) | 303 | — | 303 | Latin America & Canada | 261 | 12.3 | % | 16.1 | % | 16.1 | % | ||||||||
$ 3,340 | $ 196 | $ 3,144 | — | $ 3,144 | Total PMI | $ 2,637 | 26.7 | % | 19.2 | % | 19.2 | % | |||||||||
2017 | Full Year Ended December 31 | 2016 | % Change | ||||||||||||||||||
$ 3,691 | $ (43) | $ 3,734 | $ — | $ 3,734 | European Union | $ 3,920 | (5.8 | )% | (4.7 | )% | (4.7 | )% | |||||||||
887 | 84 | 803 | — | 803 | Eastern Europe | 890 | (0.3 | )% | (9.8 | )% | (9.8 | )% | |||||||||
1,884 | (6 | ) | 1,890 | — | 1,890 | Middle East & Africa | 1,990 | (5.3 | )% | (5.0 | )% | (5.0 | )% | ||||||||
1,514 | (47 | ) | 1,561 | — | 1,561 | South & Southeast Asia | 1,474 | 2.7 | % | 5.9 | % | 5.9 | % | ||||||||
2,608 | (75 | ) | 2,683 | — | 2,683 | East Asia & Australia | 1,691 | 54.2 | % | 58.7 | % | 58.7 | % | ||||||||
997 | (70 | ) | 1,067 | — | 1,067 | Latin America & Canada | 938 | 6.3 | % | 13.8 | % | 13.8 | % | ||||||||
$ 11,581 | $ (157) | $ 11,738 | — | $ 11,738 | Total PMI | $ 10,903 | 6.2 | % | 7.7 | % | 7.7 | % | |||||||||
Schedule 7 | |||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||
Net Revenues and Operating Income: Price and Volume/Mix Variances | |||||||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||||||
2017 vs. 2016 | |||||||||||||||||||||||||
Quarters Ended March 31 | Quarters Ended June 30 | Quarters Ended September 30 | Quarters Ended December 31 | Full Year Ended December 31 | |||||||||||||||||||||
Price | Volume/Mix | Price | Volume/Mix | Price | Volume/Mix | Price | Volume/Mix | Price | Volume/Mix | ||||||||||||||||
Net Revenues | |||||||||||||||||||||||||
European Union | $ 47 | $ (115) | $ 38 | $ 9 | $ 37 | $ (86) | $ 34 | $ 147 | $ 156 | $ (45) | |||||||||||||||
Eastern Europe | 45 | (78 | ) | 20 | (11 | ) | 32 | (60 | ) | 60 | (10 | ) | 157 | (159 | ) | ||||||||||
Middle East & Africa | 108 | (101 | ) | 107 | (43 | ) | 33 | (51 | ) | (41 | ) | (20 | ) | 207 | (215 | ) | |||||||||
South & Southeast Asia | 95 | (133 | ) | 101 | (166 | ) | 110 | 23 | 47 | 7 | 353 | (269 | ) | ||||||||||||
East Asia & Australia | 48 | 207 | 27 | 310 | 12 | 517 | 119 | 922 | 206 | 1,956 | |||||||||||||||
Latin America & Canada | 65 | (87 | ) | 74 | (3 | ) | 85 | (25 | ) | 83 | (39 | ) | 307 | (154 | ) | ||||||||||
Total PMI | $ 408 | $ (307) | $ 367 | $ 96 | $ 309 | $ 318 | $ 302 | $ 1,007 | $ 1,386 | $ 1,114 | |||||||||||||||
Operating Income | |||||||||||||||||||||||||
European Union | $ 47 | $ (109) | $ 38 | $ (23) | $ 37 | $ (88) | $ 34 | $ 101 | $ 156 | $ (119) | |||||||||||||||
Eastern Europe | 45 | (73 | ) | 20 | (17 | ) | 32 | (54 | ) | 60 | (20 | ) | 157 | (164 | ) | ||||||||||
Middle East & Africa | 108 | (62 | ) | 107 | (26 | ) | 33 | (67 | ) | (41 | ) | (25 | ) | 207 | (180 | ) | |||||||||
South & Southeast Asia | 95 | (98 | ) | 101 | (119 | ) | 110 | (8 | ) | 47 | (11 | ) | 353 | (236 | ) | ||||||||||
East Asia & Australia | 48 | 42 | 27 | 100 | 12 | 234 | 119 | 482 | 206 | 858 | |||||||||||||||
Latin America & Canada | 65 | (75 | ) | 74 | (4 | ) | 85 | (37 | ) | 83 | (36 | ) | 307 | (152 | ) | ||||||||||
Total PMI | $ 408 | $ (375) | $ 367 | $ (89) | $ 309 | $ (20) | $ 302 | $ 491 | $ 1,386 | $ 7 | |||||||||||||||
Schedule 8 (1/2) | |||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions | |||||||||||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||||||||||
Operating Income | Asset Impairment & Exit Costs | Adjusted Operating Income | Currency | Adjusted Operating Income excluding Currency | Acquisitions | Adjusted Operating Income excluding Currency & Acquisitions | Operating Income | Asset Impairment & Exit Costs | Adjusted Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | |||||||||||||||||
2017 | Quarters Ended March 31 | 2016 | % Change | ||||||||||||||||||||||||||
$ 748 | $ — | $ 748 | $ (27) | $ 775 | $ — | $ 775 | European Union | $ 885 | $ — | $ 885 | (15.5 | )% | (12.4 | )% | (12.4 | )% | |||||||||||||
159 | — | 159 | 35 | 124 | — | 124 | Eastern Europe | 137 | — | 137 | 16.1 | % | (9.5 | )% | (9.5 | )% | |||||||||||||
491 | — | 491 | (47 | ) | 538 | — | 538 | Middle East & Africa | 476 | — | 476 | 3.2 | % | 13.0 | % | 13.0 | % | ||||||||||||
370 | — | 370 | 12 | 358 | — | 358 | South & Southeast Asia | 375 | — | 375 | (1.3 | )% | (4.5 | )% | (4.5 | )% | |||||||||||||
472 | — | 472 | 42 | 430 | — | 430 | East Asia & Australia | 393 | — | 393 | 20.1 | % | 9.4 | % | 9.4 | % | |||||||||||||
176 | — | 176 | (26 | ) | 202 | — | 202 | Latin America & Canada | 230 | — | 230 | (23.5 | )% | (12.2 | )% | (12.2 | )% | ||||||||||||
$ 2,416 | — | $ 2,416 | $ (11) | $ 2,427 | — | $ 2,427 | Total PMI | $ 2,496 | — | $ 2,496 | (3.2 | )% | (2.8 | )% | (2.8 | )% | |||||||||||||
2017 | Quarters Ended June 30 | 2016 | % Change | ||||||||||||||||||||||||||
$ 944 | $ — | $ 944 | $ (61) | $ 1,005 | $ — | $ 1,005 | European Union | $ 1,053 | $ — | $ 1,053 | (10.4 | )% | (4.6 | )% | (4.6 | )% | |||||||||||||
224 | — | 224 | 15 | 209 | — | 209 | Eastern Europe | 223 | — | 223 | 0.4 | % | (6.3 | )% | (6.3 | )% | |||||||||||||
477 | — | 477 | (104 | ) | 581 | — | 581 | Middle East & Africa | 531 | — | 531 | (10.2 | )% | 9.4 | % | 9.4 | % | ||||||||||||
319 | — | 319 | (15 | ) | 334 | — | 334 | South & Southeast Asia | 351 | — | 351 | (9.1 | )% | (4.8 | )% | (4.8 | )% | ||||||||||||
510 | — | 510 | (10 | ) | 520 | — | 520 | East Asia & Australia | 394 | — | 394 | 29.4 | % | 32.0 | % | 32.0 | % | ||||||||||||
263 | — | 263 | (26 | ) | 289 | — | 289 | Latin America & Canada | 222 | — | 222 | 18.5 | % | 30.2 | % | 30.2 | % | ||||||||||||
$ 2,737 | — | $ 2,737 | $ (201) | $ 2,938 | — | $ 2,938 | Total PMI | $ 2,774 | — | $ 2,774 | (1.3 | )% | 5.9 | % | 5.9 | % | |||||||||||||
2017 | Quarters Ended September 30 | 2016 | % Change | ||||||||||||||||||||||||||
$ 1,025 | $ — | $ 1,025 | $ 8 | $ 1,017 | $ — | $ 1,017 | European Union | $ 1,100 | $ — | $ 1,100 | (6.8 | )% | (7.5 | )% | (7.5 | )% | |||||||||||||
244 | — | 244 | 36 | 208 | — | 208 | Eastern Europe | 256 | — | 256 | (4.7 | )% | (18.8 | )% | (18.8 | )% | |||||||||||||
495 | — | 495 | (122 | ) | 617 | — | 617 | Middle East & Africa | 663 | — | 663 | (25.3 | )% | (6.9 | )% | (6.9 | )% | ||||||||||||
411 | — | 411 | (11 | ) | 422 | — | 422 | South & Southeast Asia | 329 | — | 329 | 24.9 | % | 28.3 | % | 28.3 | % | ||||||||||||
648 | — | 648 | (44 | ) | 692 | — | 692 | East Asia & Australia | 423 | — | 423 | 53.2 | % | 63.6 | % | 63.6 | % | ||||||||||||
265 | — | 265 | (8 | ) | 273 | — | 273 | Latin America & Canada | 225 | — | 225 | 17.8 | % | 21.3 | % | 21.3 | % | ||||||||||||
$ 3,088 | — | $ 3,088 | $ (141) | $ 3,229 | — | $ 3,229 | Total PMI | $ 2,996 | — | $ 2,996 | 3.1 | % | 7.8 | % | 7.8 | % | |||||||||||||
Schedule 8 (2/2) | |||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions | |||||||||||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||||||||||
Operating Income | Asset Impairment & Exit Costs | Adjusted Operating Income | Currency | Adjusted Operating Income excluding Currency | Acquisitions | Adjusted Operating Income excluding Currency & Acquisitions | Operating Income | Asset Impairment & Exit Costs | Adjusted Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | |||||||||||||||||
2017 | Quarters Ended December 31 | 2016 | % Change | ||||||||||||||||||||||||||
$ 974 | $ — | $ 974 | $ 37 | $ 937 | $ — | $ 937 | European Union | $ 882 | $ — | $ 882 | 10.4 | % | 6.2 | % | 6.2 | % | |||||||||||||
260 | — | 260 | (2 | ) | 262 | — | 262 | Eastern Europe | 274 | — | 274 | (5.1 | )% | (4.4 | )% | (4.4 | )% | ||||||||||||
421 | — | 421 | 267 | 154 | — | 154 | Middle East & Africa | 320 | — | 320 | 31.6 | % | (51.9 | )% | (51.9 | )% | |||||||||||||
414 | — | 414 | (33 | ) | 447 | — | 447 | South & Southeast Asia | 419 | — | 419 | (1.2 | )% | 6.7 | % | 6.7 | % | ||||||||||||
978 | — | 978 | (63 | ) | 1,041 | — | 1,041 | East Asia & Australia | 481 | — | 481 | +100 | % | +100 | % | +100 | % | ||||||||||||
293 | — | 293 | (10 | ) | 303 | — | 303 | Latin America & Canada | 261 | — | 261 | 12.3 | % | 16.1 | % | 16.1 | % | ||||||||||||
$ 3,340 | — | $ 3,340 | $ 196 | $ 3,144 | — | $ 3,144 | Total PMI | $ 2,637 | — | $ 2,637 | 26.7 | % | 19.2 | % | 19.2 | % | |||||||||||||
2017 | Full Year Ended December 31 | 2016 | % Change | ||||||||||||||||||||||||||
$ 3,691 | $ — | $ 3,691 | $ (43) | $ 3,734 | $ — | $ 3,734 | European Union | $ 3,920 | $ — | $ 3,920 | (5.8 | )% | (4.7 | )% | (4.7 | )% | |||||||||||||
887 | — | 887 | 84 | 803 | — | 803 | Eastern Europe | 890 | — | 890 | (0.3 | )% | (9.8 | )% | (9.8 | )% | |||||||||||||
1,884 | — | 1,884 | (6 | ) | 1,890 | — | 1,890 | Middle East & Africa | 1,990 | — | 1,990 | (5.3 | )% | (5.0 | )% | (5.0 | )% | ||||||||||||
1,514 | — | 1,514 | (47 | ) | 1,561 | — | 1,561 | South & Southeast Asia | 1,474 | — | 1,474 | 2.7 | % | 5.9 | % | 5.9 | % | ||||||||||||
2,608 | — | 2,608 | (75 | ) | 2,683 | — | 2,683 | East Asia & Australia | 1,691 | — | 1,691 | 54.2 | % | 58.7 | % | 58.7 | % | ||||||||||||
997 | — | 997 | (70 | ) | 1,067 | — | 1,067 | Latin America & Canada | 938 | — | 938 | 6.3 | % | 13.8 | % | 13.8 | % | ||||||||||||
$ 11,581 | — | $ 11,581 | $ (157) | $ 11,738 | — | $ 11,738 | Total PMI | $ 10,903 | — | $ 10,903 | 6.2 | % | 7.7 | % | 7.7 | % | |||||||||||||
Schedule 9 (1/2) | |||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||||||||||
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions | |||||||||||||||||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||||||||||||||||
Adjusted Operating Income (1) | Net Revenues | Adjusted Operating Income Margin | Adjusted Operating Income excluding Currency (1) | Net Revenues excluding Currency (2) | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income excluding Currency & Acqui- sitions (1) | Net Revenues excluding Currency & Acqui- sitions (2) | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | Adjusted Operating Income (1) | Net Revenues | Adjusted Operating Income Margin | Adjusted Operating Income Margin | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | |||||||||||||||||||||
2017 | Quarters Ended March 31 | 2016 | % Points Change | ||||||||||||||||||||||||||||||||
$ 748 | $ 1,740 | 43.0 | % | $ 775 | $ 1,795 | 43.2 | % | $ 775 | $ 1,795 | 43.2 | % | European Union | $ 885 | $ 1,863 | 47.5 | % | (4.5 | ) | (4.3 | ) | (4.3 | ) | |||||||||||||
159 | 516 | 30.8 | % | 124 | 458 | 27.1 | % | 124 | 458 | 27.1 | % | Eastern Europe | 137 | 491 | 27.9 | % | 2.9 | (0.8 | ) | (0.8 | ) | ||||||||||||||
491 | 961 | 51.1 | % | 538 | 1,118 | 48.1 | % | 538 | 1,118 | 48.1 | % | Middle East & Africa | 476 | 1,111 | 42.8 | % | 8.3 | 5.3 | 5.3 | ||||||||||||||||
370 | 1,031 | 35.9 | % | 358 | 1,020 | 35.1 | % | 358 | 1,020 | 35.1 | % | South & Southeast Asia | 375 | 1,058 | 35.4 | % | 0.5 | (0.3 | ) | (0.3 | ) | ||||||||||||||
472 | 1,210 | 39.0 | % | 430 | 1,165 | 36.9 | % | 430 | 1,165 | 36.9 | % | East Asia & Australia | 393 | 910 | 43.2 | % | (4.2 | ) | (6.3 | ) | (6.3 | ) | |||||||||||||
176 | 606 | 29.0 | % | 202 | 628 | 32.2 | % | 202 | 628 | 32.2 | % | Latin America & Canada | 230 | 650 | 35.4 | % | (6.4 | ) | (3.2 | ) | (3.2 | ) | |||||||||||||
$ 2,416 | $ 6,064 | 39.8 | % | $ 2,427 | $ 6,184 | 39.2 | % | $ 2,427 | $ 6,184 | 39.2 | % | Total PMI | $ 2,496 | $ 6,083 | 41.0 | % | (1.2 | ) | (1.8 | ) | (1.8 | ) | |||||||||||||
2017 | Quarters Ended June 30 | 2016 | % Points Change | ||||||||||||||||||||||||||||||||
$ 944 | $ 2,110 | 44.7 | % | $ 1,005 | $ 2,202 | 45.6 | % | $ 1,005 | $ 2,202 | 45.6 | % | European Union | $ 1,053 | $ 2,155 | 48.9 | % | (4.2 | ) | (3.3 | ) | (3.3 | ) | |||||||||||||
224 | 697 | 32.1 | % | 209 | 625 | 33.4 | % | 209 | 625 | 33.4 | % | Eastern Europe | 223 | 616 | 36.2 | % | (4.1 | ) | (2.8 | ) | (2.8 | ) | |||||||||||||
477 | 978 | 48.8 | % | 581 | 1,112 | 52.2 | % | 581 | 1,112 | 52.2 | % | Middle East & Africa | 531 | 1,048 | 50.7 | % | (1.9 | ) | 1.5 | 1.5 | |||||||||||||||
319 | 1,046 | 30.5 | % | 334 | 1,064 | 31.4 | % | 334 | 1,064 | 31.4 | % | South & Southeast Asia | 351 | 1,129 | 31.1 | % | (0.6 | ) | 0.3 | 0.3 | |||||||||||||||
510 | 1,338 | 38.1 | % | 520 | 1,341 | 38.8 | % | 520 | 1,341 | 38.8 | % | East Asia & Australia | 394 | 1,004 | 39.2 | % | (1.1 | ) | (0.4 | ) | (0.4 | ) | |||||||||||||
263 | 748 | 35.2 | % | 289 | 768 | 37.6 | % | 289 | 768 | 37.6 | % | Latin America & Canada | 222 | 697 | 31.9 | % | 3.3 | 5.7 | 5.7 | ||||||||||||||||
$ 2,737 | $ 6,917 | 39.6 | % | $ 2,938 | $ 7,112 | 41.3 | % | $ 2,938 | $ 7,112 | 41.3 | % | Total PMI | $ 2,774 | $ 6,649 | 41.7 | % | (2.1 | ) | (0.4 | ) | (0.4 | ) | |||||||||||||
2017 | Quarters Ended September 30 | 2016 | % Points Change | ||||||||||||||||||||||||||||||||
$ 1,025 | $ 2,204 | 46.5 | % | $ 1,017 | $ 2,151 | 47.3 | % | $ 1,017 | $ 2,151 | 47.3 | % | European Union | $ 1,100 | $ 2,200 | 50.0 | % | (3.5 | ) | (2.7 | ) | (2.7 | ) | |||||||||||||
244 | 705 | 34.6 | % | 208 | 659 | 31.6 | % | 208 | 659 | 31.6 | % | Eastern Europe | 256 | 687 | 37.3 | % | (2.7 | ) | (5.7 | ) | (5.7 | ) | |||||||||||||
495 | 1,078 | 45.9 | % | 617 | 1,231 | 50.1 | % | 617 | 1,231 | 50.1 | % | Middle East & Africa | 663 | 1,249 | 53.1 | % | (7.2 | ) | (3.0 | ) | (3.0 | ) | |||||||||||||
411 | 1,129 | 36.4 | % | 422 | 1,148 | 36.8 | % | 422 | 1,148 | 36.8 | % | South & Southeast Asia | 329 | 1,015 | 32.4 | % | 4.0 | 4.4 | 4.4 | ||||||||||||||||
648 | 1,601 | 40.5 | % | 692 | 1,650 | 41.9 | % | 692 | 1,650 | 41.9 | % | East Asia & Australia | 423 | 1,121 | 37.7 | % | 2.8 | 4.2 | 4.2 | ||||||||||||||||
265 | 756 | 35.1 | % | 273 | 770 | 35.5 | % | 273 | 770 | 35.5 | % | Latin America & Canada | 225 | 710 | 31.7 | % | 3.4 | 3.8 | 3.8 | ||||||||||||||||
$ 3,088 | $ 7,473 | 41.3 | % | $ 3,229 | $ 7,609 | 42.4 | % | $ 3,229 | $ 7,609 | 42.4 | % | Total PMI | $ 2,996 | $ 6,982 | 42.9 | % | (1.6 | ) | (0.5 | ) | (0.5 | ) | |||||||||||||
(1) For the calculation of Adjusted Operating Income, Adjusted Operating Income excluding currency and Adjusted Operating Income excluding currency and acquisitions, refer to Schedule 8 | |||||||||||||||||||||||||||||||||||
(2) For the calculation of Net Revenues excluding currency and Net Revenues excluding currency and acquisitions, refer to Schedule 5 | |||||||||||||||||||||||||||||||||||
Schedule 9 (2/2) | ||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||||||||||||
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions | ||||||||||||||||||||||||||||||||
($ in millions) / (Unaudited) | ||||||||||||||||||||||||||||||||
Adjusted Operating Income (1) | Net Revenues | Adjusted Operating Income Margin | Adjusted Operating Income excluding Currency (1) | Net Revenues excluding Currency (2) | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income excluding Currency & Acqui- sitions (1) | Net Revenues excluding Currency & Acqui- sitions (2) | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | Adjusted Operating Income (1) | Net Revenues | Adjusted Operating Income Margin | Adjusted Operating Income Margin | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | ||||||||||||||||||
2017 | Quarters Ended December 31 | 2016 | % Points Change | |||||||||||||||||||||||||||||
$ 974 | $ 2,264 | 43.0 | % | $ 937 | $ 2,125 | 44.1 | % | $ 937 | $ 2,125 | 44.1 | % | European Union | $ 882 | $ 1,944 | 45.4 | % | (2.4) | (1.3) | (1.3) | |||||||||||||
260 | 793 | 32.8 | % | 262 | 740 | 35.4 | % | 262 | 740 | 35.4 | % | Eastern Europe | 274 | 690 | 39.7 | % | (6.9) | (4.3) | (4.3) | |||||||||||||
421 | 971 | 43.4 | % | 154 | 1,047 | 14.7 | % | 154 | 1,047 | 14.7 | % | Middle East & Africa | 320 | 1,108 | 28.9 | % | 14.5 | (14.2) | (14.2) | |||||||||||||
414 | 1,211 | 34.2 | % | 447 | 1,248 | 35.8 | % | 447 | 1,248 | 35.8 | % | South & Southeast Asia | 419 | 1,194 | 35.1 | % | (0.9) | 0.7 | 0.7 | |||||||||||||
978 | 2,224 | 44.0 | % | 1,041 | 2,291 | 45.4 | % | 1,041 | 2,291 | 45.4 | % | East Asia & Australia | 481 | 1,250 | 38.5 | % | 5.5 | 6.9 | 6.9 | |||||||||||||
293 | 831 | 35.3 | % | 303 | 829 | 36.6 | % | 303 | 829 | 36.6 | % | Latin America & Canada | 261 | 785 | 33.2 | % | 2.1 | 3.4 | 3.4 | |||||||||||||
$ 3,340 | $ 8,294 | 40.3 | % | $ 3,144 | $ 8,280 | 38.0 | % | $ 3,144 | $ 8,280 | 38.0 | % | Total PMI | $ 2,637 | $ 6,971 | 37.8 | % | 2.5 | 0.2 | 0.2 | |||||||||||||
2017 | Full Year Ended December 31 | 2016 | % Points Change | |||||||||||||||||||||||||||||
$ 3,691 | $ 8,318 | 44.4 | % | $ 3,734 | $ 8,273 | 45.1 | % | $ 3,734 | $ 8,273 | 45.1 | % | European Union | $ 3,920 | $ 8,162 | 48.0 | % | (3.6) | (2.9) | (2.9) | |||||||||||||
887 | 2,711 | 32.7 | % | 803 | 2,482 | 32.4 | % | 803 | 2,482 | 32.4 | % | Eastern Europe | 890 | 2,484 | 35.8 | % | (3.1) | (3.4) | (3.4) | |||||||||||||
1,884 | 3,988 | 47.2 | % | 1,890 | 4,508 | 41.9 | % | 1,890 | 4,508 | 41.9 | % | Middle East & Africa | 1,990 | 4,516 | 44.1 | % | 3.1 | (2.2) | (2.2) | |||||||||||||
1,514 | 4,417 | 34.3 | % | 1,561 | 4,480 | 34.8 | % | 1,561 | 4,480 | 34.8 | % | South & Southeast Asia | 1,474 | 4,396 | 33.5 | % | 0.8 | 1.3 | 1.3 | |||||||||||||
2,608 | 6,373 | 40.9 | % | 2,683 | 6,447 | 41.6 | % | 2,683 | 6,447 | 41.6 | % | East Asia & Australia | 1,691 | 4,285 | 39.5 | % | 1.4 | 2.1 | 2.1 | |||||||||||||
997 | 2,941 | 33.9 | % | 1,067 | 2,995 | 35.6 | % | 1,067 | 2,995 | 35.6 | % | Latin America & Canada | 938 | 2,842 | 33.0 | % | 0.9 | 2.6 | 2.6 | |||||||||||||
$ 11,581 | $ 28,748 | 40.3 | % | $ 11,738 | $ 29,185 | 40.2 | % | $ 11,738 | $ 29,185 | 40.2 | % | Total PMI | $ 10,903 | $ 26,685 | 40.9 | % | (0.6) | (0.7) | (0.7) | |||||||||||||
(1) For the calculation of Adjusted Operating Income, Adjusted Operating Income excluding currency and Adjusted Operating Income excluding currency and acquisitions, refer to Schedule 8 | ||||||||||||||||||||||||||||||||
(2) For the calculation of Net Revenues excluding currency and Net Revenues excluding currency and acquisitions, refer to Schedule 5 | ||||||||||||||||||||||||||||||||
Schedule 10 | |||||||||||||||||||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Earnings | |||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except per share data) / (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Quarters Ended March 31 | Quarters Ended June 30 | Quarters Ended September 30 | Quarters Ended December 31 | Full Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||||||||||||||
Revenues Including Excise Taxes | $ | 16,556 | $ | 16,788 | (1.4 | )% | $ | 19,319 | $ | 19,041 | 1.5 | % | $ | 20,638 | $ | 19,935 | 3.5 | % | $ | 21,585 | $ | 19,189 | 12.5 | % | $ | 78,098 | $ | 74,953 | 4.2 | % | |||||||||||||||
Excise taxes on products | 10,492 | 10,705 | (2.0 | )% | 12,402 | 12,392 | 0.1 | % | 13,165 | 12,953 | 1.6 | % | 13,291 | 12,218 | 8.8 | % | 49,350 | 48,268 | 2.2 | % | |||||||||||||||||||||||||
Net Revenues | $ 6,064 | $ 6,083 | (0.3 | )% | $ 6,917 | $ 6,649 | 4.0 | % | $ 7,473 | $ 6,982 | 7.0 | % | $ 8,294 | $ 6,971 | 19.0 | % | $ | 28,748 | $ | 26,685 | 7.7 | % | |||||||||||||||||||||||
Cost of sales | 2,177 | 2,096 | 3.9 | % | 2,519 | 2,364 | 6.6 | % | 2,735 | 2,432 | 12.5 | % | 3,001 | 2,499 | 20.1 | % | 10,432 | 9,391 | 11.1 | % | |||||||||||||||||||||||||
Gross profit | 3,887 | 3,987 | (2.5 | )% | 4,398 | 4,285 | 2.6 | % | 4,738 | 4,550 | 4.1 | % | 5,293 | 4,472 | 18.4 | % | 18,316 | 17,294 | 5.9 | % | |||||||||||||||||||||||||
Marketing, administration and research costs | 1,449 | 1,473 | (1.6 | )% | 1,639 | 1,492 | 9.9 | % | 1,629 | 1,535 | 6.1 | % | 1,930 | 1,817 | 6.2 | % | 6,647 | 6,317 | 5.2 | % | |||||||||||||||||||||||||
Asset impairment and exit costs | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Amortization of intangibles | 22 | 18 | 22 | 19 | 21 | 19 | 23 | 18 | 88 | 74 | |||||||||||||||||||||||||||||||||||
Operating Income | 2,416 | 2,496 | (3.2 | )% | 2,737 | 2,774 | (1.3 | )% | 3,088 | 2,996 | 3.1 | % | 3,340 | 2,637 | 26.7 | % | 11,581 | 10,903 | 6.2 | % | |||||||||||||||||||||||||
Interest expense, net | 219 | 247 | (11.3 | )% | 213 | 223 | (4.5 | )% | 223 | 220 | 1.4 | % | 259 | 201 | 28.9 | % | 914 | 891 | 2.6 | % | |||||||||||||||||||||||||
Pension and other employee benefit costs | 20 | 23 | (13.0 | )% | 16 | 21 | (23.8 | )% | 20 | 19 | 5.3 | % | 22 | 25 | (12.0 | )% | 78 | 88 | (11.4 | )% | |||||||||||||||||||||||||
Earnings before income taxes | 2,177 | 2,226 | (2.2 | )% | 2,508 | 2,530 | (0.9 | )% | 2,845 | 2,757 | 3.2 | % | 3,059 | 2,411 | 26.9 | % | 10,589 | 9,924 | 6.7 | % | |||||||||||||||||||||||||
Provision for income taxes | 541 | 630 | (14.1 | )% | 689 | 716 | (3.8 | )% | 812 | 764 | 6.3 | % | 2,265 | 658 | +100.0 | % | 4,307 | 2,768 | 55.6 | % | |||||||||||||||||||||||||
Equity investments and securities (income)/loss, net | (22 | ) | (9 | ) | (23 | ) | (28 | ) | (12 | ) | (35 | ) | (2 | ) | (22 | ) | (59 | ) | (94 | ) | |||||||||||||||||||||||||
Net Earnings | 1,658 | 1,605 | 3.3 | % | 1,842 | 1,842 | — | 2,045 | 2,028 | 0.8 | % | 796 | 1,775 | (55.2 | )% | 6,341 | 7,250 | (12.5 | )% | ||||||||||||||||||||||||||
Net Earnings attributable to noncontrolling interests | 68 | 75 | 61 | 54 | 75 | 90 | 102 | 64 | 306 | 283 | |||||||||||||||||||||||||||||||||||
Net Earnings attributable to PMI | $ 1,590 | $ 1,530 | 3.9 | % | $ 1,781 | $ 1,788 | (0.4 | )% | $ 1,970 | $ 1,938 | 1.7 | % | $ 694 | $ 1,711 | (59.4 | )% | $ 6,035 | $ 6,967 | (13.4 | )% | |||||||||||||||||||||||||
Per share data (1): | |||||||||||||||||||||||||||||||||||||||||||||
Basic Earnings Per Share | $ 1.02 | $ 0.98 | 4.1 | % | $ 1.14 | $ 1.15 | (0.9 | )% | $ 1.27 | $ 1.25 | 1.6 | % | $ 0.44 | $ 1.10 | (60.0 | )% | $ 3.88 | $ 4.48 | (13.4 | )% | |||||||||||||||||||||||||
Diluted Earnings Per Share | $ 1.02 | $ 0.98 | 4.1 | % | $ 1.14 | $ 1.15 | (0.9 | )% | $ 1.27 | $ 1.25 | 1.6 | % | $ 0.44 | $ 1.10 | (60.0 | )% | $ 3.88 | $ 4.48 | (13.4 | )% | |||||||||||||||||||||||||
(1) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations are shown on Schedule 3, Footnote 1. | |||||||||||||||||||||||||||||||||||||||||||||
Schedule 11 | |||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||
Condensed Balance Sheets | |||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | |||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ 5,076 | $ 6,197 | $ 7,667 | $ 8,447 | $ 4,239 | ||||||||||
All other current assets | 11,808 | 12,235 | 13,192 | 13,147 | 13,369 | ||||||||||
Property, plant and equipment, net | 6,264 | 6,629 | 6,857 | 7,271 | 6,064 | ||||||||||
Goodwill | 7,485 | 7,614 | 7,681 | 7,666 | 7,324 | ||||||||||
Other intangible assets, net | 2,517 | 2,527 | 2,501 | 2,432 | 2,470 | ||||||||||
Investments in unconsolidated subsidiaries and equity securities | 1,079 | 1,072 | 1,080 | 1,074 | 1,011 | ||||||||||
Other assets | 2,398 | 2,386 | 2,973 | 2,931 | 2,374 | ||||||||||
Total assets | $ 36,627 | $ 38,660 | $ 41,951 | $ 42,968 | $ 36,851 | ||||||||||
Liabilities and Stockholders' (Deficit) Equity | |||||||||||||||
Short-term borrowings | $ 1,004 | $ 898 | $ 2,905 | $ 499 | $ 643 | ||||||||||
Current portion of long-term debt | 1,754 | 4,254 | 3,005 | 2,506 | 2,573 | ||||||||||
All other current liabilities | 10,597 | 12,091 | 12,604 | 12,957 | 13,251 | ||||||||||
Long-term debt | 28,588 | 26,595 | 28,065 | 31,334 | 25,851 | ||||||||||
Deferred income taxes | 1,739 | 1,362 | 1,037 | 799 | 1,897 | ||||||||||
Other long-term liabilities | 3,502 | 3,737 | 3,968 | 5,103 | 3,536 | ||||||||||
Total liabilities | 47,184 | 48,937 | 51,584 | 53,198 | 47,751 | ||||||||||
Total PMI stockholders' deficit | (12,392 | ) | (12,008 | ) | (11,407 | ) | (12,086 | ) | (12,688 | ) | |||||
Noncontrolling interests | 1,835 | 1,731 | 1,774 | 1,856 | 1,788 | ||||||||||
Total stockholders' (deficit) equity | (10,557 | ) | (10,277 | ) | (9,633 | ) | (10,230 | ) | (10,900 | ) | |||||
Total liabilities and stockholders' (deficit) equity | $ 36,627 | $ 38,660 | $ 41,951 | $ 42,968 | $ 36,851 | ||||||||||
Schedule 12 | ||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. 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) | ||||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, | |||||||||||||||||||||||
April ~ December | January ~ March | 12 months | July ~ December | January ~ June | 12 months | October ~ December | January ~ September | 12 months | 2017 | 2016 | ||||||||||||||||
2016 | 2017 | rolling | 2016 | 2017 | rolling | 2016 | 2017 | rolling | ||||||||||||||||||
Net Earnings | $ 5,645 | $ 1,658 | $ 7,303 | $ 3,803 | $ 3,500 | $ 7,303 | $ 1,775 | $ 5,545 | $ 7,320 | $ 6,341 | $ 7,250 | |||||||||||||||
Equity investments and securities (income)/loss, net | (85 | ) | (22 | ) | (107 | ) | (57 | ) | (45 | ) | (102 | ) | (22 | ) | (57 | ) | (79 | ) | (59 | ) | (94 | ) | ||||
Provision for Income Taxes | 2,138 | 541 | 2,679 | 1,422 | 1,230 | 2,652 | 658 | 2,042 | 2,700 | 4,307 | 2,768 | |||||||||||||||
Interest expense, net | 644 | 219 | 863 | 421 | 432 | 853 | 201 | 655 | 856 | 914 | 891 | |||||||||||||||
Depreciation and amortization | 568 | 197 | 765 | 383 | 407 | 790 | 195 | 632 | 827 | 875 | 743 | |||||||||||||||
Asset impairment and exit costs | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||
Adjusted EBITDA | $ 8,910 | $ 2,593 | $ 11,503 | $ 5,972 | $ 5,524 | $ 11,496 | $ 2,807 | $ 8,817 | $ 11,624 | $ 12,378 | $ 11,558 | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||||||||
Short-term borrowings | $ 1,004 | $ 898 | $ 2,905 | $ 499 | $ 643 | |||||||||||||||||||||
Current portion of long-term debt | 1,754 | 4,254 | 3,005 | 2,506 | 2,573 | |||||||||||||||||||||
Long-term debt | 28,588 | 26,595 | 28,065 | 31,334 | 25,851 | |||||||||||||||||||||
Total Debt | $ 31,346 | $ 31,747 | $ 33,975 | $ 34,339 | $ 29,067 | |||||||||||||||||||||
Cash and cash equivalents | 5,076 | 6,197 | 7,667 | 8,447 | 4,239 | |||||||||||||||||||||
Net Debt | $ 26,270 | $ 25,550 | $ 26,308 | $ 25,892 | $ 24,828 | |||||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||
Total Debt to Adjusted EBITDA | 2.73 | 2.76 | 2.92 | 2.77 | 2.51 | |||||||||||||||||||||
Net Debt to Adjusted EBITDA | 2.28 | 2.22 | 2.26 | 2.09 | 2.15 | |||||||||||||||||||||
Schedule 13 | |||||||||||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||||
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency | |||||||||||||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||||||||||||
Quarters Ended | Quarters Ended | Quarters Ended | Quarters Ended | Full Year Ended | |||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | December 31 | |||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||
Net cash provided by operating activities(1) | $ 843 | $ 462 | 82.5 | % | $ 3,228 | $ 2,374 | 36.0 | % | $ 1,920 | $ 3,092 | (37.9 | )% | $ 2,921 | $ 2,149 | 35.9 | % | $ 8,912 | $ 8,077 | 10.3 | % | |||||||||
Currency | (118 | ) | 429 | (113 | ) | 194 | 392 | ||||||||||||||||||||||
Net cash provided by operating activities, excluding currency | $ 961 | $ 462 | +100 | % | $ 2,799 | $ 2,374 | 17.9 | % | $ 2,033 | $ 3,092 | (34.2 | )% | $ 2,727 | $ 2,149 | 26.9 | % | $ 8,520 | $ 8,077 | 5.5 | % | |||||||||
(1) Operating cash flow | |||||||||||||||||||||||||||||