Leases: (Tables)

12 Months Ended

Dec. 31, 2023

Operating and Finance Lease Assets and Liabilities

PMI’s operating and finance leases at December 31, 2023 and 2022, were as follows:


	At December 31,
(in millions)	2023				2022
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Assets:
Machinery and equipment	$	—	$	111	$	—	$	123
Other assets	631		—		594		—
Total lease assets	$	631	$	111	$	594	$	123

Liabilities:
Current
Current portion of long-term debt	$	—	$	30	$	—	$	34
Accrued liabilities - Other	197		—		178		—
Noncurrent
Long-term debt	—		23		—		20
Income taxes and other liabilities	456		—		436		—
Total lease liabilities	$	653	$	53	$	614	$	54

Lease Cost Components

The components of PMI’s lease cost were as follows for the years ended December 31, 2023, 2022 and 2021:


	For the Years Ended December 31,
(in millions)	2023		2022		2021
Operating lease cost	$	266	$	248	$	259
Finance lease cost:
Amortization of right-of-use assets	49		83		54
Interest on lease liabilities	1		1		1
Short-term lease cost	59		59		55
Variable lease cost	28		23		25
Total lease cost	$	403	$	414	$	394

Operating and Finance Lease Liability Maturity

Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2023, were as follows:


(in millions)	Operating Leases		Finance Leases
2024	$	228	$	31
2025	159		12
2026	109		6
2027	72		5
2028	45		2
Thereafter	163		—
Total lease payments	776		56
Less: Interest	123		3
Present value of lease liabilities	$	653	$	53

Other Lease Information

Other information related to PMI’s leases was as follows for the years ended December 31, 2023, 2022 and 2021:


	December 31,
(in millions)	2023						2022						2021
	Operating Leases			Finance Leases			Operating Leases			Finance Leases			Operating Leases			Finance Leases
Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1)	$	265		$	—		$	243		$	—		$	259		$	—
Cash paid for amounts included in the measurement of lease liabilities in financing cash flows	$	—		$	27		$	—		$	76		$	—		$	26
Leased assets obtained in exchange for new lease liabilities	$	205		$	55		$	255		$	100		$	64		$	89
Weighted-average remaining lease term (years)	10.2			2.6			10.3			2.1			8.3			1.7
Weighted-average discount rate(2) (3)	5.1		%	4.9		%	3.4		%	4.4		%	3.6		%	5.3		%

(1) Cash paid included in the operating cash flows for finance leases is not material.

(2) PMI’s weighted-average discount rate for operating leases is based on its estimated pre-tax cost of debt adjusted for country-specific risk.

(3) PMI’s weighted-average discount rate for finance leases, excluding embedded leases, is based on its estimated pre-tax cost of debt adjusted for country-specific risk and where applicable the interest rate explicit in lease contracts.