v3.24.0.1
Financial Instruments: (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The gross notional amounts for outstanding derivatives as of December 31, 2023 and 2022, were as follows:

(in millions)20232022
Derivative contracts designated as hedging instruments:
Foreign exchange contracts$21,987 $17,627 
Interest rate contracts3,600 1,019 
Commodity contracts20 — 
Derivative contracts not designated as hedging instruments:
Foreign exchange contracts17,658 21,755 
Total$43,265 $40,401 
Fair Value of Derivative Contracts
The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2023 and 2022, were as follows:
Derivative AssetsDerivative Liabilities
Fair Value
Fair Value
(in millions)
Balance Sheet
 Classification
20232022
Balance Sheet 
Classification
20232022
Derivative contracts designated as hedging instruments:
Foreign exchange contractsOther current assets$345 $376 Other accrued liabilities$249 $126 
Other assets153 341 Income taxes and other liabilities449 147 
Interest rate contractsOther current assets1 — Other accrued liabilities78 27 
Other assets— — Income taxes and other liabilities18 56 
Commodity contractsOther current assets— — Other accrued liabilities5 — 
Other assets— — Income taxes and other liabilities1 — 
Derivative contracts not designated as hedging instruments:
Foreign exchange contracts
Other current assets 
85 156 Other accrued liabilities425 165 
Other assets— — Income taxes and other liabilities143 16 
Total gross amount derivatives contracts presented in the consolidated balance sheets
$584 $873 $1,368 $537 
Gross amounts not offset in the consolidated balance sheets
Financial instruments(374)(346)(374)(346)
Cash collateral received/pledged(109)(341)(551)(48)
Net amount$101 $186 $443 $143 
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings
For the years ended December 31, 2023, 2022 and 2021, PMI's derivative contracts impacted the consolidated statements of earnings and comprehensive earnings as follows:

(pre-tax, in millions)For the Years Ended December 31,
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on DerivativesStatement of Earnings
Classification of Gain/(Loss)
on Derivatives		Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into EarningsAmount of Gain/(Loss) Recognized in Earnings
202320222021202320222021202320222021
Derivative contracts designated as hedging instruments:
Cash flow hedges:
Foreign exchange contracts$195 $288 $138 
Net revenues$194 $233 $59 
Cost of sales— — — 
Marketing, administration and research costs27 30 (10)
Interest expense, net(15)(7)(6)
Interest rate contracts37 292 6 Interest expense, net46 (2)(1)
Commodity contracts(7)— — Cost of sales— — — 
Fair value hedges:
Interest rate contracts
Interest expense, net (a)
$(14)$(83)$1 
Net investment hedges (b):
Foreign exchange contracts(788)300 484 
Interest expense, net (c)
268 181 150 
Derivative contracts not designated as hedging instruments:
Foreign exchange contractsInterest expense, net301 112 55 
Marketing, administration and research costs (d)
(575)(169)215 
Total$(563)$880 $628 $252 $254 $42 $(20)$41 $421 
(a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item
(b) Amount of gains (losses) on hedges of net investments principally related to changes in exchange and interest rates between the Euro and U.S. dollar
(c) Represent the gains for amounts excluded from the effectiveness testing
(d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are partially offset by the (losses) and gains generated by the underlying intercompany and third-party loans being hedged
Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows:
For the Years Ended December 31,
(in millions)
202320222021
Gain/(loss) as of January 1,
$266 $4 $(85)
Derivative (gains)/losses transferred to earnings
(220)(219)(35)
Change in fair value
195 481 124 
Gain/(loss) as of December 31,
$241 $266 $4