Stock Analysis on Net
Stock Analysis on Net

Philip Morris International Inc. (NYSE:PM)

This company has been moved to the archive! The financial data has not been updated since July 27, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Philip Morris International Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
United States federal and state (75) 73 (80) 17 120
Outside United States 2,553 2,616 2,600 2,417 2,425
Current 2,478 2,689 2,520 2,434 2,545
United States federal and state (139) 27 53 24 (113)
Outside United States (95) (45) (196) (165) 13
Deferred (234) (18) (143) (141) (100)
Provision for income taxes 2,244 2,671 2,377 2,293 2,445

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Philip Morris International Inc. current increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Philip Morris International Inc. deferred increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Philip Morris International Inc. provision for income taxes increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Effective Income Tax Rate (EITR)

Philip Morris International Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Foreign rate differences -0.50% -0.30% 0.60% 1.80% 1.30%
Dividend repatriation cost 0.70% 0.60% 0.40% -0.50% 2.50%
Global intangible low-taxed income 1.00% 0.80% 0.10% 1.40% 1.20%
U.S. state taxes 0.10% 0.20% 0.20% 0.70% -1.10%
Foreign derived intangible income -0.80% -0.70% -0.60% -1.20% -1.10%
Foreign exchange -1.70% 0.00% 0.00% 0.00% 0.00%
Other -0.50% 0.20% 0.00% 0.00% -0.90%
Effective tax rate 19.30% 21.80% 21.70% 23.20% 22.90%

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).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Philip Morris International Inc. effective tax rate increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

Philip Morris International Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Accrued postretirement and postemployment benefits 217 234 225 184 193
Accrued pension costs 277 392 720 620 390
Inventory 22 177 232 176 136
Accrued liabilities 158 168 182 130 138
Net operating loss carryforwards and tax credits 384 408 351 486 452
Foreign exchange — — 27 — —
Other — 112 124 101 37
Deferred income tax assets 1,058 1,491 1,861 1,697 1,346
Valuation allowance (378) (239) (250) (304) (257)
Deferred income tax assets, net of valuation allowance 680 1,252 1,611 1,393 1,089
Intangible assets (1,485) (591) (374) (469) (508)
Property, plant and equipment (200) (140) (200) (180) (222)
Unremitted earnings (141) (206) (311) (243) (123)
Foreign exchange (175) (146) — (256) (157)
Other (32) — — — —
Deferred income tax liabilities (2,033) (1,083) (885) (1,148) (1,010)
Net deferred income tax assets (liabilities) (1,353) 169 726 245 79

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).

Item Description The company
Deferred income tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Philip Morris International Inc. deferred income tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Philip Morris International Inc. deferred income tax assets, net of valuation allowance decreased from 2020 to 2021 and from 2021 to 2022.
Net deferred income tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Philip Morris International Inc. net deferred income tax assets (liabilities) decreased from 2020 to 2021 and from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

Philip Morris International Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred income tax assets 603 895 1,410 1,153 977
Deferred income tax liabilities 1,956 726 684 908 898

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).

Item Description The company
Deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Philip Morris International Inc. deferred income tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Philip Morris International Inc. deferred income tax liabilities increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

Philip Morris International Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
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: Noncurrent deferred tax assets, net 603 895 1,410 1,153 977
Total assets (adjusted) 61,078 40,395 43,405 41,722 38,824
Adjustment to Total Liabilities
Total liabilities (as reported) 67,992 49,498 55,446 52,474 50,540
Less: Noncurrent deferred tax liabilities, net 1,956 726 684 908 898
Total liabilities (adjusted) 66,036 48,772 54,762 51,566 49,642
Adjustment to Total PMI Stockholders’ Deficit
Total PMI stockholders’ deficit (as reported) (8,957) (10,106) (12,567) (11,577) (12,459)
Less: Net deferred tax assets (liabilities) (1,353) 169 726 245 79
Total PMI stockholders’ deficit (adjusted) (7,604) (10,275) (13,293) (11,822) (12,538)
Adjustment to Net Earnings Attributable To PMI
Net earnings attributable to PMI (as reported) 9,048 9,109 8,056 7,185 7,911
Add: Deferred income tax expense (benefit) (234) (18) (143) (141) (100)
Net earnings attributable to PMI (adjusted) 8,814 9,091 7,913 7,044 7,811

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Philip Morris International Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 11.22% 11.08% 10.59% 9.22% 9.91%
Adjusted net profit margin 10.93% 11.06% 10.41% 9.04% 9.79%
Total Asset Turnover
Reported total asset turnover 1.31 1.99 1.70 1.82 2.01
Adjusted total asset turnover 1.32 2.04 1.75 1.87 2.06
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 14.43% 22.51% 18.23% 16.88% 20.12%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Philip Morris International Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
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 adjusted net income divided by adjusted total assets. Philip Morris International Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

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

Adjusted Net Profit Margin

Microsoft Excel
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
Revenues including excise taxes 80,669 82,223 76,047 77,921 79,823
Profitability Ratio
Net profit margin1 11.22% 11.08% 10.59% 9.22% 9.91%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI 8,814 9,091 7,913 7,044 7,811
Revenues including excise taxes 80,669 82,223 76,047 77,921 79,823
Profitability Ratio
Adjusted net profit margin2 10.93% 11.06% 10.41% 9.04% 9.79%

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 Net profit margin = 100 × Net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 9,048 ÷ 80,669 = 11.22%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 8,814 ÷ 80,669 = 10.93%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Philip Morris International Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues including excise taxes 80,669 82,223 76,047 77,921 79,823
Adjusted total assets 61,078 40,395 43,405 41,722 38,824
Activity Ratio
Adjusted total asset turnover2 1.32 2.04 1.75 1.87 2.06

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 ÷ 61,078 = 1.32

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.

Adjusted Financial Leverage

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 61,078 40,395 43,405 41,722 38,824
Adjusted total PMI stockholders’ deficit (7,604) (10,275) (13,293) (11,822) (12,538)
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
= 61,078 ÷ -7,604 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI 8,814 9,091 7,913 7,044 7,811
Adjusted total PMI stockholders’ deficit (7,604) (10,275) (13,293) (11,822) (12,538)
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 × Adjusted net earnings attributable to PMI ÷ Adjusted total PMI stockholders’ deficit
= 100 × 8,814 ÷ -7,604 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI 8,814 9,091 7,913 7,044 7,811
Adjusted total assets 61,078 40,395 43,405 41,722 38,824
Profitability Ratio
Adjusted ROA2 14.43% 22.51% 18.23% 16.88% 20.12%

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 × Adjusted net earnings attributable to PMI ÷ Adjusted total assets
= 100 × 8,814 ÷ 61,078 = 14.43%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Philip Morris International Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.