v3.25.0.1
Benefit Plans: (Tables)
 12 Months Ended
Dec. 31, 2024
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, 2024, 2023 and 2022:

(in millions)202420232022
Net pension costs (income)$(76)$(84)$(93)
Net postemployment costs123 117 107 
Net postretirement costs13 12 10 
Total pension and other employee benefit costs$60 $45 $24 
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, 2024 and 2023, were as follows:
Pension(1)
Postretirement
(in millions)
2024202320242023
Benefit obligation at January 1$10,567 $8,606 $246 $229 
Service cost
218 174 3 4 
Interest cost
234 258 13 12 
Benefits paid
(434)(520)(14)(13)
 Employee contributions157 145 — — 
 Settlement, curtailment and plan amendment
(12)(17)(1)— 
Actuarial losses (gains)
460 1,209 2 24 
Currency
(708)763 5 (4)
Other
(26)(51)(6)(6)
Benefit obligation at December 31,
10,456 10,567 248 246 
Fair value of plan assets at January 1,
8,851 7,939 3 3 
Actual return on plan assets
973 643 — — 
Employer contributions, net of refunds
110 21 14 13 
Employee contributions
157 145 — — 
Benefits paid
(434)(520)(14)(13)
 Settlement
(10)(17)(1)— 
Currency
(600)639 1 — 
Other(17)1 — — 
Fair value of plan assets at December 31,
9,030 8,851 3 3 
Net pension and postretirement liability recognized at December 31,
$(1,426)$(1,716)$(245)$(243)
(1) Primarily non-U.S. based defined benefit retirement plans.
Pension and Postretirement Liabilities Recognized in Consolidated Balance Sheets
At December 31, 2024 and 2023, the amounts recognized on PMI's consolidated balance sheets for the pension and postretirement plans were as follows:
PensionPostretirement
(in millions)
2024202320242023
Other assets
$490 $294 
Accrued liabilities — employment costs
(33)(31)$(14)$(12)
Long-term employment costs
(1,883)(1,979)(231)(231)
$(1,426)$(1,716)$(245)$(243)
Schedule of Assumptions Used
The following weighted-average assumptions were used to determine PMI’s pension and postretirement benefit obligations at December 31:
PensionPostretirement
2024202320242023
Discount rate
2.07 %2.28 %5.35 %5.19 %
Rate of compensation increase
1.89 2.05 
Interest crediting rate
3.05 2.99 
Health care cost trend rate assumed for next year
6.82 6.54 
Ultimate trend rate
4.71 4.49 
Year that rate reaches the ultimate trend rate
20482047
The following weighted-average assumptions were used to determine PMI’s net pension and postretirement health care costs:
PensionPostretirement
202420232022202420232022
Discount rate - service cost
2.68 %3.27 %1.03 %5.19 %5.89 %3.08 %
Discount rate - interest cost
2.34 3.03 0.71 5.19 5.89 3.08 
Expected rate of return on plan assets
4.63 4.42 4.17 
Rate of compensation increase
2.05 1.98 1.77 
Interest crediting rate
2.99 2.97 3.15 
Health care cost trend rate
6.54 6.14 6.27 
Components of Net Periodic Benefit Cost
Net periodic pension and postretirement health care costs consisted of the following for the years ended December 31, 2024, 2023 and 2022:
PensionPostretirement
(in millions)
202420232022202420232022
Service cost
$218 $174 $233 $3 $4 $2 
Interest cost
234 258 78 13 12 6 
Expected return on plan assets
(403)(365)(352)— — — 
Amortization:
Net losses
93 18 181 (1)(1)2 
Prior service cost (credit)
(2)(2)(2)— — — 
Net transition obligation
— — — — — — 
Settlement and curtailment
2 7 2 1 1 2 
Net periodic pension and postretirement costs$142 $90 $140 $16 $16 $12 
Fair Value of Pension Plan Assets
The fair value of PMI’s pension plan assets at December 31, 2024 and 2023, by asset category was as follows:
Asset Category
(in millions)		At December 31, 2024
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
$83 $83 
Equity securities:
U.S. securities
144 144 
International securities
525 525 
Investment funds(a)
7,317 5,245 $2,072 
Government bonds
238 166 72 
Corporate bonds
409 409 
Other
31 — 3 28 
(c)
Total assets in the fair value hierarchy
$8,747 $6,572 $2,147 $28 
Investment funds measured at net asset value(b)
283 
Total assets
$9,030 
(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 and Small Cap for equities / FTSE EMU, FTSE Non-EGBI EuroBIG, SBI AAA-BBB and JP Morgan EMBI for bonds / SXI Real Estate and KGAST for real estate) , primarily consist of mutual funds, common trust funds and commingled funds. Of these funds, 57% are invested in U.S. and international equities; 13% are invested in U.S. and international government bonds; 14% are invested in corporate bonds and 16% 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, 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% were invested in U.S. and international equities; 15% were invested in U.S. and international government bonds; 15% were invested in corporate bonds, and 13% 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, 2024, are as follows:
(in millions)
2025$444 
2026452 
2027459 
2028466 
2029479 
2030 - 20342,630 
Amounts Recorded in Accumulated Other Comprehensive Losses
The amounts recorded in accumulated other comprehensive losses at December 31, 2024, consisted of the following:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Net (losses) gains
$(2,122)$(36)$(815)$(2,973)
Prior service (cost) credit
75 1 (21)55 
Net transition (obligation) asset
(3)— — (3)
Deferred income taxes
246 19 195 460 
Losses to be amortized
$(1,804)$(16)$(641)$(2,461)
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)
Movements in Other Comprehensive Earnings (Losses)
The movements in other comprehensive earnings (losses) during the year ended December 31, 2024, were as follows:
(in millions)
PensionPost-
retirement		Post-
employment		Total
Amounts transferred to earnings:
Amortization:
Net losses (gains)
$88 $1 $86 $175 
Prior service cost (credit)
(6)— — (6)
Net transition obligation (asset)
— — — — 
Other income/expense:
Net losses (gains)
1 1 — 2 
    Prior service cost (credit)
— — — — 
Deferred income taxes
(13)(2)(21)(36)
70 — 65 135 
Other movements during the year:
Net (losses) gains
114 (2)(131)(19)
Prior service (cost) credit
4 — — 4 
Deferred income taxes
(24)2 30 8 
94 — (101)(7)
Total movements in other comprehensive earnings (losses)
$164 $— $(36)$128 
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 taxes154 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