v3.25.0.1
Financial Instruments: (Tables)
 12 Months Ended
Dec. 31, 2024
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, 2024 and 2023, were as follows:

(in millions)20242023
Derivative contracts designated as hedging instruments:
Foreign exchange contracts$25,149 $21,987 
Interest rate contracts3,000 3,600 
Commodity contracts9 20 
Derivative contracts not designated as hedging instruments:
Foreign exchange contracts15,942 17,658 
Total$44,100 $43,265 
Fair Value of Derivative Contracts
The fair value of PMI’s derivative contracts included in the consolidated balance sheets as of December 31, 2024 and 2023, were as follows:
Derivative AssetsDerivative Liabilities
Fair Value
Fair Value
(in millions)
Balance Sheet
 Classification
20242023
Balance Sheet 
Classification
20242023
Derivative contracts designated as hedging instruments:
Foreign exchange contractsOther current assets$772 $345 Other accrued liabilities$7 $249 
Other assets299 153 Income taxes and other liabilities60 449 
Interest rate contractsOther current assets— 1 Other accrued liabilities50 78 
Other assets4 — Income taxes and other liabilities3 18 
Commodity contractsOther current assets— — Other accrued liabilities— 5 
Other assets— — Income taxes and other liabilities— 1 
Derivative contracts not designated as hedging instruments:
Foreign exchange contracts
Other current assets 
331 85 Other accrued liabilities69 425 
Other assets12 — Income taxes and other liabilities58 143 
Total gross amount derivatives contracts presented in the consolidated balance sheets
$1,418 $584 $247 $1,368 
Gross amounts not offset in the consolidated balance sheets
Financial instruments(218)(374)(218)(374)
Cash collateral received/pledged(863)(109)(18)(551)
Net amount$337 $101 $11 $443 
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings
For the years ended December 31, 2024, 2023 and 2022, 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
202420232022202420232022202420232022
Derivative contracts designated as hedging instruments:
Cash flow hedges:
Foreign exchange contracts$433 $195 $288 
Net revenues$186 $194 $233 
Cost of sales— — — 
Marketing, administration and research costs20 27 30 
Interest expense, net2 (15)(7)
Interest rate contracts95 37 292 Interest expense, net51 46 (2)
Commodity contracts(1)(7)— Cost of sales(1)— — 
Fair value hedges:
Interest rate contracts
Interest expense, net (a)
$(32)$(14)$(83)
Net investment hedges (b):
Foreign exchange contracts867 (788)300 
Interest expense, net (c)
293 268 181 
Marketing, administration and research costs35 — — 
Derivative contracts not designated as hedging instruments:
Foreign exchange contractsInterest expense, net219 301 112 
Marketing, administration and research costs (d)
523 (575)(169)
Total$1,394 $(563)$880 $293 $252 $254 $1,003 $(20)$41 
(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 foreign currency 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)
202420232022
Gain/(loss) as of January 1,
$241 $266 $4 
Derivative (gains)/losses transferred to earnings
(213)(220)(219)
Change in fair value
439 195 481 
Gain/(loss) as of December 31,
$467 $241 $266