Analysis of Income Taxes
- Income Tax Expense (Benefit)
- Effective Income Tax Rate (EITR)
- Components of Deferred Tax Assets and Liabilities
- Deferred Tax Assets and Liabilities, Classification
- Adjustments to Financial Statements: Removal of Deferred Taxes
- Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
- Adjusted Net Profit Margin
- Adjusted Total Asset Turnover
- Adjusted Financial Leverage
- Adjusted Return on Equity (ROE)
- Adjusted Return on Assets (ROA)
Income Tax Expense (Benefit)
Philip Morris International Inc., income tax expense (benefit), continuing operations
US$ in millions
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
Item | Description | The company |
---|---|---|
Current | Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. | Philip Morris International Inc.’s current decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level. |
Deferred | Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. | Philip Morris International Inc.’s deferred decreased from 2018 to 2019 and from 2019 to 2020. |
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.’s provision for income taxes decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level. |
Effective Income Tax Rate (EITR)
Philip Morris International Inc., effective income tax rate (EITR) reconciliation
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
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.’s effective tax rate increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Components of Deferred Tax Assets and Liabilities
Philip Morris International Inc., components of deferred tax assets and liabilities
US$ in millions
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
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.’s deferred income tax assets increased from 2018 to 2019 and from 2019 to 2020. |
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.’s deferred income tax assets, net of valuation allowance increased from 2018 to 2019 and from 2019 to 2020. |
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.’s net deferred income tax assets (liabilities) increased from 2018 to 2019 and from 2019 to 2020. |
Deferred Tax Assets and Liabilities, Classification
Philip Morris International Inc., deferred tax assets and liabilities, classification
US$ in millions
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
---|---|---|---|---|---|---|
Deferred income tax assets | 1,410 | 1,153 | 977 | 1,007 | 859 | |
Deferred income tax liabilities | 684 | 908 | 898 | 799 | 1,897 |
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
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.’s deferred income tax assets increased from 2018 to 2019 and from 2019 to 2020. |
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.’s deferred income tax liabilities increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Adjustments to Financial Statements: Removal of Deferred Taxes
Philip Morris International Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
Philip Morris International Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Philip Morris International Inc., adjusted financial ratios
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
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.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Philip Morris International Inc.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Philip Morris International Inc.’s adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Philip Morris International Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
2020 Calculations
1 Net profit margin = 100 × Net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 8,056 ÷ 76,047 = 10.59%
2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 7,913 ÷ 76,047 = 10.41%
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.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Adjusted Total Asset Turnover
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
2020 Calculations
1 Total asset turnover = Revenues including excise taxes ÷ Total assets
= 76,047 ÷ 44,815 = 1.70
2 Adjusted total asset turnover = Revenues including excise taxes ÷ Adjusted total assets
= 76,047 ÷ 43,405 = 1.75
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.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted Financial Leverage
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
2020 Calculations
1 Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 44,815 ÷ -12,567 = —
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total PMI stockholders’ deficit
= 43,405 ÷ -13,293 = —
Adjusted Return on Equity (ROE)
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
2020 Calculations
1 ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 8,056 ÷ -12,567 = —
2 Adjusted ROE = 100 × Adjusted net earnings attributable to PMI ÷ Adjusted total PMI stockholders’ deficit
= 100 × 7,913 ÷ -13,293 = —
Adjusted Return on Assets (ROA)
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
2020 Calculations
1 ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 8,056 ÷ 44,815 = 17.98%
2 Adjusted ROA = 100 × Adjusted net earnings attributable to PMI ÷ Adjusted total assets
= 100 × 7,913 ÷ 43,405 = 18.23%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Philip Morris International Inc.’s adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |