Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Philip Morris International Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	19,655)	6,680)	5,964)	5,858)	7,189)
Non-amortizable intangible assets	3,346)	1,312)	1,289)	1,319)	1,269)
Trademarks	2,050)	1,201)	1,233)	1,217)	1,488)
Developed technology, including patents	975)	859)	93)	—)	—)
Customer relationships and other	1,390)	238)	126)	219)	248)
Amortizable intangible assets, gross carrying amount	4,415)	2,298)	1,452)	1,436)	1,736)
Accumulated amortization	(1,029)	(792)	(722)	(642)	(727)
Amortizable intangible assets, net	3,386)	1,506)	730)	794)	1,009)
Other intangible assets, net	6,732)	2,818)	2,019)	2,113)	2,278)
Goodwill and other intangible assets, net	26,387)	9,498)	7,983)	7,971)	9,467)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Philip Morris International Inc. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Philip Morris International Inc. other intangible assets, net increased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Philip Morris International Inc. goodwill and other intangible assets, net increased from 2020 to 2021 and from 2021 to 2022.

Philip Morris International Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	61,681)	41,290)	44,815)	42,875)	39,801)
Less: Goodwill	19,655)	6,680)	5,964)	5,858)	7,189)
Total assets (adjusted)	42,026)	34,610)	38,851)	37,017)	32,612)
Adjustment to Total PMI Stockholders’ Deficit
Total PMI stockholders’ deficit (as reported)	(8,957)	(10,106)	(12,567)	(11,577)	(12,459)
Less: Goodwill	19,655)	6,680)	5,964)	5,858)	7,189)
Total PMI stockholders’ deficit (adjusted)	(28,612)	(16,786)	(18,531)	(17,435)	(19,648)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Philip Morris International Inc., Financial Data: Reported vs. Adjusted

Download chart

Philip Morris International Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	1.31	1.99	1.70	1.82	2.01
Adjusted total asset turnover	1.92	2.38	1.96	2.11	2.45
Financial Leverage
Reported financial leverage	—	—	—	—	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	14.67%	22.06%	17.98%	16.76%	19.88%
Adjusted ROA	21.53%	26.32%	20.74%	19.41%	24.26%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Philip Morris International Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Philip Morris International Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Philip Morris International Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues including excise taxes	80,669)	82,223)	76,047)	77,921)	79,823)
Total assets	61,681)	41,290)	44,815)	42,875)	39,801)
Activity Ratio
Total asset turnover¹	1.31	1.99	1.70	1.82	2.01
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues including excise taxes	80,669)	82,223)	76,047)	77,921)	79,823)
Adjusted total assets	42,026)	34,610)	38,851)	37,017)	32,612)
Activity Ratio
Adjusted total asset turnover²	1.92	2.38	1.96	2.11	2.45

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Revenues including excise taxes ÷ Total assets
= 80,669 ÷ 61,681 = 1.31

² Adjusted total asset turnover = Revenues including excise taxes ÷ Adjusted total assets
= 80,669 ÷ 42,026 = 1.92

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Philip Morris International Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	61,681)	41,290)	44,815)	42,875)	39,801)
Total PMI stockholders’ deficit	(8,957)	(10,106)	(12,567)	(11,577)	(12,459)
Solvency Ratio
Financial leverage¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	42,026)	34,610)	38,851)	37,017)	32,612)
Adjusted total PMI stockholders’ deficit	(28,612)	(16,786)	(18,531)	(17,435)	(19,648)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 61,681 ÷ -8,957 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total PMI stockholders’ deficit
= 42,026 ÷ -28,612 = —

Download chart

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	9,048)	9,109)	8,056)	7,185)	7,911)
Total PMI stockholders’ deficit	(8,957)	(10,106)	(12,567)	(11,577)	(12,459)
Profitability Ratio
ROE¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	9,048)	9,109)	8,056)	7,185)	7,911)
Adjusted total PMI stockholders’ deficit	(28,612)	(16,786)	(18,531)	(17,435)	(19,648)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 9,048 ÷ -8,957 = —

² Adjusted ROE = 100 × Net earnings attributable to PMI ÷ Adjusted total PMI stockholders’ deficit
= 100 × 9,048 ÷ -28,612 = —

Download chart

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	9,048)	9,109)	8,056)	7,185)	7,911)
Total assets	61,681)	41,290)	44,815)	42,875)	39,801)
Profitability Ratio
ROA¹	14.67%	22.06%	17.98%	16.76%	19.88%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI	9,048)	9,109)	8,056)	7,185)	7,911)
Adjusted total assets	42,026)	34,610)	38,851)	37,017)	32,612)
Profitability Ratio
Adjusted ROA²	21.53%	26.32%	20.74%	19.41%	24.26%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 9,048 ÷ 61,681 = 14.67%

² Adjusted ROA = 100 × Net earnings attributable to PMI ÷ Adjusted total assets
= 100 × 9,048 ÷ 42,026 = 21.53%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Philip Morris International Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Philip Morris International Inc. (NYSE:PM)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Philip Morris International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Philip Morris International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)