Inventories are stated at the lower of cost or market. The first-in, first-out and average cost methods are used to cost substantially all inventories. It is a generally recognized industry practice to classify leaf tobacco inventory as a current asset although part of such inventory, because of the duration of the aging process, ordinarily would not be utilized within one year.
Source: Philip Morris International Inc., Annual Report
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Philip Morris International Inc., Statement of Financial Position, Inventory
USD $ in millions
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
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Leaf tobacco | |
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Other raw materials | |
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Finished product | |
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Inventories | |
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Source: Based on data from Philip Morris International Inc. Annual Reports
| Item | Description | The company |
|---|---|---|
| Other raw materials | Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. | Philip Morris International Inc.'s other raw materials increased from 2009 to 2010 but then declined significantly from 2010 to 2011. |
| Finished product | Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. | Philip Morris International Inc.'s finished product declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level. |
| Inventories | Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). | Philip Morris International Inc.'s inventories declined from 2009 to 2010 and from 2010 to 2011. |
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