v3.24.0.1
Benefit Plans: (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Schedule of Pension and Other Employee Benefit Costs
Pension and other employee benefit costs per the consolidated statements of earnings consisted of the following for December 31, 2023, 2022 and 2021:

(in millions)202320222021
Net pension costs (income)$(84)$(93)$(1)
Net postemployment costs117 107 108 
Net postretirement costs12 10 8 
Total pension and other employee benefit costs$45 $24 $115 
Change in Benefit Obligations
The projected benefit obligations, plan assets and funded status of PMI’s pension plans, and the accumulated benefit obligation, plan assets and net amount accrued for PMI's postretirement health care plans, at December 31, 2023 and 2022, were as follows:
Pension(1)
Postretirement
(in millions)
2023202220232022
Benefit obligation at January 1$8,606 $10,998 $229 $198 
Service cost
174 233 4 2 
Interest cost
258 78 12 6 
Benefits paid
(520)(429)(13)(9)
 Employee contributions145 141 — — 
 Settlement, curtailment and plan amendment
(17)(17)— — 
Actuarial losses (gains)
1,209 (2,294)24 (46)
Currency
763 (434)(4)(5)
Acquisition of Swedish Match— 316 — 85 
Other
(51)14 (6)(2)
Benefit obligation at December 31,
10,567 8,606 246 229 
Fair value of plan assets at January 1,
7,939 9,337 3 — 
Actual return on plan assets
643 (1,061)— — 
Employer contributions, net of refunds
21 (3)13 9 
Employee contributions
145 141 — — 
Benefits paid
(520)(429)(13)(9)
 Settlement
(17)(14)— — 
Currency
639 (333)— — 
Acquisition of Swedish Match— 303 — 3 
Other1 (2)— — 
Fair value of plan assets at December 31,
8,851 7,939 3 3 
Net pension and postretirement liability recognized at December 31,
$(1,716)$(667)$(243)$(226)
(1) Primarily non-U.S. based defined benefit retirement plans.
Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheets
At December 31, 2023 and 2022, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows:
PensionPostretirement
(in millions)
2023202220232022
Other assets
$294 $410 
Accrued liabilities — employment costs
(31)(32)$(12)$(11)
Long-term employment costs
(1,979)(1,045)(231)(215)
$(1,716)$(667)$(243)$(226)
Schedule of Assumptions Used
The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31:
PensionPostretirement
2023202220232022
Discount rate
2.28 %3.03 %5.19 %5.89 %
Rate of compensation increase
2.05 1.98 
Interest crediting rate
2.99 2.97 
Health care cost trend rate assumed for next year
6.54 6.14 
Ultimate trend rate
4.49 4.78 
Year that rate reaches the ultimate trend rate
20472046
The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs:
PensionPostretirement
202320222021202320222021
Discount rate - service cost
3.27 %1.03 %0.72 %5.89 %3.08 %2.84 %
Discount rate - interest cost
3.03 0.71 0.44 5.89 3.08 2.84 
Expected rate of return on plan assets
4.42 4.17 4.43 
Rate of compensation increase
1.98 1.77 1.79 
Interest crediting rate
2.97 3.15 3.20 
Health care cost trend rate
6.14 6.27 6.21 
Components of Net Periodic Benefit Cost
Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2023, 2022 and 2021:
PensionPostretirement
(in millions)
202320222021202320222021
Service cost
$174 $233 $291 $4 $2 $2 
Interest cost
258 78 50 12 6 5 
Expected return on plan assets
(365)(352)(371)— — — 
Amortization:
Net losses
18 181 314 (1)2 3 
Prior service cost (credit)
(2)(2)1 — — — 
Net transition obligation
— — — — — — 
Settlement and curtailment
7 2 5 1 2 — 
Net periodic pension and postretirement costs$90 $140 $290 $16 $12 $10 
Fair Value of Pension Plan Assets
The fair value of PMI’s pension plan assets at December 31, 2023 and 2022, by asset category was as follows:
Asset Category
(in millions)		At December 31, 2023
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
$117 $117 
Equity securities:
U.S. securities
158 158 
International securities
569 569 
Investment funds(a)
7,123 5,366 $1,757 
Government bonds
255 183 72 
Corporate bonds
320 320 
Other
37 — 5 32 
(c)
Total assets in the fair value hierarchy
$8,579 $6,713 $1,834 $32 
Investment funds measured at net asset value(b)
272 
Total assets
$8,851 
(a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan, Emerging Markets for equities, and FTSE EMU, FTSE Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% are invested in U.S. and international equities; 15% are invested in U.S. and international government bonds; 15% are invested in corporate bonds and 13% are invested in real estate.
(b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.
(c) Amount relates to annuity policies of which the fair value is calculated using an actuarial model.

Asset Category
(in millions)		At December 31, 2022
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
$79 $79 
Equity securities:
U.S. securities
140 140 
International securities
521 521 
Investment funds(a)
6,419 4,870 $1,549 
Government bonds
178 117 61 
Corporate bonds
302 302 
Other
35 — 3 32 
(c)
Total assets in the fair value hierarchy
$7,674 $6,029 $1,613 $32 
Investment funds measured at net asset value(b)
265 
Total assets
$7,939 
(a) Investment funds whose objective seeks to replicate the returns and characteristics of specified market indices (primarily MSCI — Europe, Switzerland, North America, Asia Pacific, Japan; Russell 3000, S&P 500 for equities and Citigroup EMU, Citigroup Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds), primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% were invested in U.S. and international equities; 15% were invested in U.S. and international government bonds; 16% were invested in corporate bonds, and 12% were invested in real estate.
(b) In accordance with FASB ASC Subtopic 820-10, certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.
(c) Amount relates to annuity policies of which the fair value is calculated using an actuarial model.
Estimated Future Benefit Payments
The estimated future benefit payments from PMI pension plans at December 31, 2023, are as follows:
(in millions)
2024$417 
2025430 
2026428 
2027438 
2028457 
2029 - 20332,490 
Amounts Recorded in Accumulated Other Comprehensive Losses
The amounts recorded in accumulated other comprehensive losses at December 31, 2023, consisted of the following:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Net (losses) gains
$(2,325)$(36)$(770)$(3,131)
Prior service (cost) credit
77 1 (21)57 
Net transition (obligation) asset
(3)— — (3)
Deferred income taxes
283 19 186 488 
Losses to be amortized
$(1,968)$(16)$(605)$(2,589)
The amounts recorded in accumulated other comprehensive losses at December 31, 2022, consisted of the following:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Net (losses) gains
$(1,437)$(14)$(753)$(2,204)
Prior service (cost) credit
70 1 (21)50 
Net transition (obligation) asset
(3)— — (3)
Deferred income taxes
138 14 183 335 
Losses to be amortized
$(1,232)$1 $(591)$(1,822)

The amounts recorded in accumulated other comprehensive losses at December 31, 2021, consisted of the following:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Net (losses) gains
$(2,495)$(64)$(884)$(3,443)
Prior service (cost) credit
71 1 (22)50 
Net transition (obligation) asset
(3)— — (3)
Deferred income taxes
278 24 214 516 
Losses to be amortized
$(2,149)$(39)$(692)$(2,880)
Movements in Other Comprehensive Earnings (Losses)
The movements in other comprehensive earnings (losses) during the year ended December 31, 2023, were as follows:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Amounts transferred to earnings:
Amortization:
Net losses (gains)
$19 $1 $76 $96 
Prior service cost (credit)
7 — — 7 
Net transition obligation (asset)
— — — — 
Other income/expense:
Net losses (gains)
11 1 — 12 
    Prior service cost (credit)
— — — — 
Deferred income taxes
(9)(1)(18)(28)
28 1 58 87 
Other movements during the year:
Net (losses) gains
(918)(24)(93)(1,035)
Prior service (cost) credit
— — — — 
Deferred income taxes
154 6 21 181 
(764)(18)(72)(854)
Total movements in other comprehensive earnings (losses)
$(736)$(17)$(14)$(767)
The movements in other comprehensive earnings (losses) during the year ended December 31, 2022, were as follows:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Amounts transferred to earnings:
Amortization:
Net losses (gains)
$178 $3 $85 $266 
Prior service cost (credit)
(4)— — (4)
Other income/expense:
Net losses (gains)
2 1 — 3 
Prior service cost (credit)
— — 1 1 
Deferred income taxes
(28)(1)(20)(49)
148 3 66 217 
Other movements during the year:
Net (losses) gains
878 46 46 970 
Prior service (cost) credit
3 — — 3 
Deferred income taxes(112)(9)(11)(132)
769 37 35 841 
Total movements in other comprehensive earnings (losses)
$917 $40 $101 $1,058 

The movements in other comprehensive earnings (losses) during the year ended December 31, 2021, were as follows:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Amounts transferred to earnings:
Amortization:
Net losses (gains)
$294 $4 $85 $383 
Prior service cost (credit)
7 (1)— 6 
Other income/expense:
Net losses (gains)
5 1 — 6 
Prior service cost (credit)
— — — — 
Deferred income taxes(51)(1)(20)(72)
255 3 65 323 
Other movements during the year:
Net (losses) gains
1,353 (5)(130)1,218 
Prior service (cost) credit
42 — — 42 
Deferred income taxes(241)1 30 (210)
1,154 (4)(100)1,050 
Total movements in other comprehensive earnings (losses)
$1,409 $(1)$(35)$1,373