Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Philip Morris International Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Short-term borrowings	168)	137)	1,968)	5,637)	225)
Current portion of long-term debt	3,533)	3,392)	4,698)	2,611)	2,798)
Accounts payable	4,407)	3,952)	4,143)	4,076)	3,331)
Marketing and selling	1,354)	1,015)	862)	695)	811)
Taxes, except income taxes	7,555)	6,904)	7,514)	7,440)	6,324)
Employment costs	1,545)	1,305)	1,262)	1,168)	1,146)
Dividends payable	2,312)	2,120)	2,041)	1,990)	1,958)
Other	3,298)	2,832)	2,737)	2,679)	1,637)
Accrued liabilities	16,064)	14,176)	14,416)	13,972)	11,876)
Income taxes	1,255)	1,258)	1,158)	1,040)	1,025)
Current liabilities	25,427)	22,915)	26,383)	27,336)	19,255)
Long-term debt, excluding current portion	45,134)	42,166)	41,243)	34,875)	24,783)
Deferred income taxes	2,065)	2,517)	2,335)	1,956)	726)
Employment costs	2,406)	2,940)	3,046)	1,984)	2,968)
Other liabilities	2,181)	1,116)	1,743)	1,841)	1,766)
Noncurrent liabilities	51,786)	48,739)	48,367)	40,656)	30,243)
Total liabilities	77,213)	71,654)	74,750)	67,992)	49,498)
Common stock, no par value	—)	—)	—)	—)	—)
Additional paid-in capital	2,453)	2,335)	2,285)	2,230)	2,225)
Earnings reinvested in the business	35,400)	32,869)	34,090)	34,289)	33,082)
Accumulated other comprehensive losses	(12,296)	(11,314)	(11,815)	(9,559)	(9,577)
Cost of repurchased stock	(35,551)	(35,640)	(35,785)	(35,917)	(35,836)
Total PMI stockholders’ deficit	(9,994)	(11,750)	(11,225)	(8,957)	(10,106)
Noncontrolling interests	1,966)	1,880)	1,779)	2,646)	1,898)
Total stockholders’ deficit	(8,028)	(9,870)	(9,446)	(6,311)	(8,208)
Total liabilities and stockholders’ deficit	69,185)	61,784)	65,304)	61,681)	41,290)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The company’s liabilities demonstrate a significant increase between 2021 and 2025, while stockholders’ equity reflects a consistent deficit. A detailed examination of the components reveals notable shifts in both short-term and long-term obligations, alongside changes in equity accounts.

Current Liabilities: Current liabilities increased substantially from US$19.255 billion in 2021 to US$27.336 billion in 2022, before decreasing to US$22.915 billion in 2024. A subsequent rise to US$25.427 billion is observed in 2025. This fluctuation is largely driven by changes in accrued liabilities and short-term borrowings. Short-term borrowings experienced a dramatic increase in 2022, peaking at US$5.637 billion, then decreased significantly in subsequent years. Accounts payable remained relatively stable, fluctuating between US$3.331 billion and US$4.407 billion over the period. Taxes payable, excluding income taxes, consistently represent a substantial portion of current liabilities, ranging from US$6.324 billion to US$7.555 billion.
Noncurrent Liabilities: Noncurrent liabilities exhibited a steady upward trend from US$30.243 billion in 2021 to US$51.786 billion in 2025. Long-term debt, excluding the current portion, is the primary driver of this increase, growing from US$24.783 billion to US$45.134 billion. Deferred income taxes also contributed to the rise, although to a lesser extent. Other noncurrent liabilities showed an increase from US$1.766 billion to US$2.181 billion.
Total Liabilities: Total liabilities mirrored the trends in current and noncurrent liabilities, increasing from US$49.498 billion in 2021 to US$77.213 billion in 2025. The largest increase occurred between 2021 and 2022, followed by continued growth through 2025, with a slight dip in 2024.
Stockholders’ Equity: The company consistently reported a stockholders’ deficit throughout the period. The deficit widened from US$8.208 billion in 2021 to US$9.870 billion in 2024, before slightly improving to US$8.028 billion in 2025. Accumulated other comprehensive losses are a significant component of this deficit, increasing from US$9.577 billion to US$12.296 billion. Cost of repurchased stock also contributes substantially to the deficit, remaining relatively stable around US$35.5 billion to US$35.9 billion. Additional paid-in capital and earnings reinvested in the business provide offsetting balances, but are insufficient to eliminate the overall deficit. Noncontrolling interests remain relatively stable, fluctuating between US$1.779 billion and US$2.646 billion.
Overall Financial Position: The combined effect of increasing liabilities and a persistent stockholders’ deficit resulted in a growing total liabilities and stockholders’ deficit, rising from US$41.290 billion in 2021 to US$69.185 billion in 2025. This indicates an increasing reliance on debt financing and a negative net asset position.

The fluctuations in short-term borrowings and accrued liabilities warrant further investigation to understand the underlying operational and financing activities driving these changes. The consistent deficit in stockholders’ equity, coupled with the increasing debt levels, suggests a potential need for strategies to improve equity and manage debt obligations.

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Philip Morris International Inc. (NYSE:PM)

Balance Sheet: Liabilities and Stockholders’ Equity