v3.24.0.1
Indebtedness:
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Indebtedness:
Indebtedness:
Short-Term Borrowings
At December 31, 2023 and 2022, PMI’s short-term borrowings and related average interest rates consisted of the following:
December 31, 2023December 31, 2022
(in millions)Amount OutstandingAverage Year-End RateAmount OutstandingAverage Year-End Rate
Commercial paper
$1,685 5.6 %$912 4.4 %
Bank loans
283 8.9 295 7.5 
U.S. dollar credit facility borrowings related to Swedish Match AB acquisition— — 4,430 4.9 
$1,968 $5,637 
Given the mix of PMI's legal entities and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country.

The fair values of PMI’s short-term borrowings at December 31, 2023 and 2022, based on current market interest rates, approximate carrying value.

Long-Term Debt
At December 31, 2023 and 2022, PMI’s long-term debt consisted of the following:
December 31,
(in millions)
20232022
U.S. dollar notes, 0.875% to 6.375% (average interest rate 4.446%), due through 2044
$30,272 $22,596 
Foreign currency obligations:
Euro notes, 0.125% to 3.125% (average interest rate 1.877%), due through 2039
8,526 8,116 
Swiss franc note, 1.625%, due 2024
299 378 
Euro credit facility borrowings related to Swedish Match AB acquisition, (average interest rate 4.453%), due through 2027
6,121 5,850 
Swedish krona notes, 1.395% to 2.710% (average interest rate 2.016%), due through 2029
236 343 
Other (average interest rate 6.027%), due through 2031 (a)
487 203 
Carrying value of long-term debt45,941 37,486 
Less current portion of long-term debt
4,698 2,611 
$41,243 $34,875 
(a) Includes long-term bank loans at subsidiaries, as well as $53 million and $54 million in finance leases at December 31, 2023 and 2022, respectively.

The fair value of PMI’s outstanding long-term debt, which is utilized solely for disclosure purposes, is determined using quotes and market interest rates currently available to PMI for issuances of debt with similar terms and remaining maturities. At December 31, 2023 and 2022 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows:
December 31,
(in millions)
20232022
Level 1$38,259 $28,919 
Level 26,687 6,142 

For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2. Summary of Significant Accounting Policies.

Credit Facilities related to the Financing of the Swedish Match Acquisition

In connection with PMI's all-cash recommended public offer to the shareholders of Swedish Match, on May 11, 2022, PMI entered into a credit agreement relating to a 364-day senior unsecured bridge facility. The facility provided for borrowings up to an aggregate principal amount of $17 billion, expiring 364 days after the occurrence of certain events unless extended. On June 23, 2022, PMI entered into a €5.5 billion (approximately $5.8 billion at the date of signing) senior unsecured term loan credit agreement consisting of a €3.0 billion (approximately $3.2 billion at the date of signing) tranche expiring three years after the occurrence of certain events and a €2.5 billion (approximately $2.6 billion at the date of signing) tranche expiring on June 23, 2027. In connection with the term loan facility, the aggregate principal amount of commitments under the 364-day senior unsecured bridge facility was reduced from $17 billion to $11 billion. On November 11, 2022, PMI acquired a controlling interest of 85.87% of the total issued shares in Swedish Match and acquired 94.81% of its outstanding shares as of December 31, 2022. In accordance with the Swedish Companies Act, PMI subsequently exercised its right to compulsorily redeem the remaining shares for which acceptances were not received and obtained legal title to 100% of the shares in Swedish Match on February 17, 2023.

PMI borrowed $8.4 billion under the bridge facility by delivering notices of borrowing for advances of $7.9 billion and $0.5 billion on November 7, 2022 and November 10, 2022, respectively. On November 21, 2022 and February 17, 2023, PMI repaid $4.0 billion and $4.4 billion, respectively, under the bridge facility. Effective February 20, 2023, the remaining outstanding commitments under the bridge facility were fully canceled and the bridge facility agreement was terminated in accordance with its terms.

On November 7, 2022, PMI also delivered notices of borrowing for advances totaling €5.5 billion under the term loan facility, of which €3.0 billion will become due on November 9, 2025 and €2.5 billion will become due on June 23, 2027 unless prepaid pursuant to the terms of the credit agreement. As of December 31, 2023 and 2022, the €5.5 billion (approximately $6 billion) term loan facility was fully drawn and remained outstanding. 

The proceeds under the bridge facility and the term loan facility were used, directly or indirectly, to finance the acquisition, including, the payment of related fees and expenses. For further details on this acquisition, see Note 3. Acquisitions.
Notes Outstanding:
PMI’s notes outstanding at December 31, 2023, were as follows:
(in millions)
Type
Face ValueInterest
Rate		IssuanceMaturity
U.S. dollar notes
$9002.875%May 2019May 2024
U.S. dollar notes
$7503.250%November 2014November 2024
U.S. dollar notes
$1,0005.125%November 2022November 2024
U.S. dollar notes
$7501.500%May 2020May 2025
U.S. dollar notes
$7503.375%August 2015August 2025
U.S. dollar notes
$7505.000%November 2022November 2025
U.S. dollar notes
$7502.750%February 2016February 2026
U.S. dollar notes
$1,2504.875%February 2023February 2026
U.S. dollar notes
(a)$4504.875%May 2023February 2026
U.S. dollar notes
$7500.875%November 2020May 2026
U.S. dollar notes
$5003.125%August 2017August 2027
U.S. dollar notes
$1,5005.125%November 2022November 2027
U.S. dollar notes
$1,0004.875%February 2023February 2028
U.S. dollar notes
(b)$5504.875%May 2023February 2028
U.S. dollar notes
$5003.125%November 2017March 2028
U.S. dollar notes
(c)
$504.000%May 2013May 2028
U.S. dollar notes
$6505.250%September 2023September 2028
U.S. dollar notes
$7503.375%May 2019August 2029
U.S. dollar notes
$1,2505.625%November 2022November 2029
U.S. dollar notes
$1,5005.125%February 2023February 2030
U.S. dollar notes
(d)$7005.125%May 2023February 2030
U.S. dollar notes
$7502.100%May 2020May 2030
U.S. dollar notes
$7005.500%September 2023September 2030
U.S. dollar notes
$7501.750%November 2020November 2030
U.S. dollar notes
$1,5005.750%November 2022November 2032
U.S. dollar notes
$1,5005.375%February 2023February 2033
U.S. dollar notes
(e)$7505.375%May 2023February 2033
U.S. dollar notes
$1,0005.625%September 2023September 2033
U.S. dollar notes
$1,5006.375%May 2008May 2038
U.S. dollar notes
$7504.375%November 2011November 2041
U.S. dollar notes
$7004.500%March 2012March 2042
U.S. dollar notes
$7503.875%August 2012August 2042
U.S. dollar notes
$8504.125%March 2013March 2043
U.S. dollar notes
$7504.875%November 2013November 2043
U.S. dollar notes
$7504.250%November 2014November 2044
U.S. dollar notes
(f)
$5004.250%May 2016November 2044
EURO notes
(g)
€600 (approximately $761)
2.875%May 2012May 2024
EURO notes
(c)
€300 (approximately $308)
0.875%September 2016September 2024
EURO notes
(g)
€500 (approximately $582)
0.625%November 2017November 2024
EURO notes
(g)
€750 (approximately $972)
2.750%March 2013March 2025
EURO notes
(c)
€200 (approximately $205)
1.200%November 2017November 2025
EURO notes
(c)
€50 (approximately $51)
1.200%December 2020November 2025
EURO notes
(c)
€50 (approximately $51)
1.200%June 2021November 2025
(in millions)
Type
Face ValueInterest
Rate		IssuanceMaturity
EURO notes
(g)
€1,000 (approximately $1,372)
2.875%March 2014March 2026
EURO notes
(g)
€500 (approximately $557)
0.125%August 2019August 2026
EURO notes
(c)
€300 (approximately $308)
0.875%February 2020February 2027
EURO notes
(g)
€500 (approximately $697)
2.875%May 2014May 2029
EURO notes
(g)
€750 (approximately $835)
0.800%August 2019August 2031
EURO notes
(g)
€500 (approximately $648)
3.125%June 2013June 2033
EURO notes
(g)
€500 (approximately $578)
2.000%May 2016May 2036
EURO notes
(g)
€500 (approximately $582)
1.875%November 2017November 2037
EURO notes
(g)
€750 (approximately $835)
1.450%August 2019August 2039
Swiss franc notes
(g)
CHF250 (approximately $283)
1.625%May 2014May 2024
Swedish krona notes
(c)
SEK1,000 (approximately $95)
2.710%January 2019January 2026
Swedish krona notes
(c)
SEK700 (approximately $67)
1.395%February 2021February 2026
Swedish krona notes
(c)
SEK100 (approximately $10)
1.395%March 2021February 2026
Swedish krona notes
(c)
SEK200 (approximately $19)
1.395%September 2021February 2026
Swedish krona notes
(c)
SEK200 (approximately $19)
1.395%January 2022February 2026
Swedish krona notes
(c)
SEK300 (approximately $29)
2.190%April 2021April 2029
(a) These notes are a further issuance of the 4.875% notes issued in February 2023.
(b) These notes are a further issuance of the 4.875% notes issued in February 2023.
(c) Notes issued by Swedish Match AB. USD equivalents for foreign currency notes were calculated based on exchange rates on the date of acquisition.
(d) These notes are a further issuance of the 5.125% notes issued in February 2023.
(e) These notes are a further issuance of the 5.375% notes issued in February 2023.
(f) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014.
(g) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance.

The net proceeds from the sale of the securities listed in the table above were primarily used for general corporate purposes, including working capital requirements and repurchase of PMI's common stock. On February 17, 2023, PMI applied a portion of the net proceeds of the February 2023 debt issuances to prepay $4.4 billion under its bridge facility, which represented all borrowings outstanding under the bridge facility. PMI used a portion of the May 2023 net proceeds to pay the remaining cash consideration due in accordance with the terms of its agreement with Altria. For further details on PMI's agreement with Altria, see Note 3. Acquisitions. The remaining net proceeds of the February and May 2023 offerings, as well as the September 2023 offering have been used for general corporate purposes.
Aggregate maturities:
Aggregate maturities of long-term debt are as follows:
(in millions)
2024$4,709 
20256,785 
20265,117 
20275,141 
20282,771 
2029-203313,312 
2034-20382,613 
Thereafter5,885 
46,333 
Debt discounts and fair value adjustments(392)
Total long-term debt$45,941 


Revolving Credit Facilities

At December 31, 2023, PMI’s total committed revolving credit facilities were as follows:
Type
(in billions)		Committed Revolving Credit Facilities
364-day revolving credit, expiring January 30, 2024 (1)
$1.8 
Multi-year revolving credit, expiring February 10, 2026 (2)
2.0 
Multi-year revolving credit, expiring September 29, 2026 (3) (4)
2.5 
Total facilities
$6.3 
(1) On January 24, 2024, PMI entered into an agreement to extend the term of its 364-day committed revolving credit facility in the amount of $1.7 billion from January 30, 2024, to January 28, 2025.
(2) On January 28, 2022, PMI entered into an agreement, effective February 10, 2022, to amend and extend the term of its $2.0 billion multi-year revolving credit facility, for an additional year covering the period February 11, 2026 to February 10, 2027, in the amount of $1.9 billion.
(3) Includes pricing adjustments that may result in the reduction or increase in both the interest rate and commitment fee under the credit agreement if PMI achieves, or fails to achieve, certain specified targets.
(4) On September 20, 2022, PMI entered into an agreement, effective September 29, 2022, to amend and extend the term of its $2.5 billion multi-year revolving credit facility, for an additional year covering the period September 30, 2026 to September 29, 2027, in the amount of $2.3 billion. On September 20, 2023, PMI entered into an agreement, effective September 29, 2023, to amend and further extend the term to September 29, 2028.

At December 31, 2023, there were no borrowings under these committed revolving credit facilities, and the entire committed amounts were available for borrowing.

In addition to the committed revolving credit facilities discussed above, PMI maintains certain short-term credit arrangements, including uncommitted credit lines, to primarily meet working capital needs. These credit arrangements amounted to approximately $2.7 billion at December 31, 2023, and approximately $1.9 billion at December 31, 2022. Borrowings under these arrangements and other bank loans amounted to $283 million at December 31, 2023, and $295 million at December 31, 2022.