v3.25.0.1
Leases: (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Operating and Finance Lease Assets and Liabilities
PMI’s operating and finance leases at December 31, 2024 and 2023, were as follows:
At December 31,
(in millions)20242023
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Assets:
Machinery and equipment$— $126 $— $111 
Other assets585 — 631 — 
Total lease assets$585 $126 $631 $111 
Liabilities:
Current
Current portion of long-term debt$— $37 $— $30 
Accrued liabilities - Other177 — 197 — 
Noncurrent
Long-term debt— 30 — 23 
Income taxes and other liabilities427 — 456 — 
Total lease liabilities$604 $67 $653 $53 
Lease Cost Components
The components of PMI’s lease cost were as follows for the years ended December 31, 2024, 2023 and 2022:
For the Years Ended December 31,
(in millions)202420232022
Operating lease cost$283 $266 $248 
Finance lease cost:
Amortization of right-of-use assets72 49 83 
Interest on lease liabilities2 1 1 
Short-term lease cost63 59 59 
Variable lease cost28 28 23 
Total lease cost$448 $403 $414 
Operating and Finance Lease Liability Maturity
Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2024, were as follows:
(in millions)Operating LeasesFinance Leases
2025$207 $39 
2026147 17 
2027102 8 
202866 5 
202935 2 
Thereafter175 — 
Total lease payments732 71 
Less: Interest128 4 
Present value of lease liabilities$604 $67 
Other Lease Information
Other information related to PMI’s leases was as follows for the years ended December 31, 2024, 2023 and 2022:
December 31,
(in millions)202420232022
Operating LeasesFinance LeasesOperating LeasesFinance LeasesOperating LeasesFinance Leases
Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1)
$281 $— $265 $— $243 $— 
Cash paid for amounts included in the measurement of lease liabilities in financing cash flows$— $29 $— $27 $— $76 
Leased assets obtained in exchange for new lease liabilities$214 $73 $205 $55 $255 $100 
Weighted-average remaining lease term (years)10.42.610.22.610.32.1
Weighted-average discount rate(2) (3)
5.9 %4.4 %5.1 %4.9 %3.4 %4.4 %
(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.