Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Philip Morris International Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net earnings	11,848)	7,503)	8,268)	9,527)	9,710)
Depreciation and amortization expense	1,996)	1,787)	1,398)	1,077)	998)
Impairment of goodwill and other intangibles	41)	27)	680)	112)	—)
Losses on sales of businesses, including held-for-sale	94)	206)	—)	—)	—)
Impairment related to the RBH equity investment	—)	2,316)	—)	—)	—)
Deferred income tax benefit	(847)	(123)	(330)	(234)	(17)
Restructuring charges, net of cash paid	206)	122)	30)	(93)	(22)
Receivables, net	(448)	(738)	314)	(871)	(198)
Inventories	(1,201)	552)	(862)	(1,287)	549)
Accounts payable	258)	297)	(288)	719)	653)
Accrued liabilities and other current assets	(151)	628)	(232)	1,862)	623)
Income taxes	(266)	(62)	(232)	(261)	(260)
Cash effects of changes in operating capital, net of the effects from acquired and divested companies	(1,808)	677)	(1,300)	162)	1,367)
Pension plan contributions, net of refunds	(139)	(110)	(21)	3)	(269)
Other	842)	(188)	479)	249)	200)
Adjustments to reconcile net earnings to operating cash flows	385)	4,714)	936)	1,276)	2,257)
Net cash provided by operating activities	12,233)	12,217)	9,204)	10,803)	11,967)
Capital expenditures	(1,569)	(1,444)	(1,321)	(1,077)	(748)
Acquisition of Swedish Match AB, net of acquired cash	—)	—)	—)	(13,976)	—)
Other acquisitions, net of acquired cash	—)	43)	—)	—)	(2,111)
Altria Group, Inc. agreement	—)	—)	(1,775)	(1,002)	—)
Proceeds from sales of businesses, net of cash disposed	30)	136)	191)	—)	—)
Purchases of debt securities	(202)	(132)	—)	—)	—)
Sales and maturities of debt securities	116)	—)	—)	—)	—)
Equity investments	(63)	(124)	(111)	(20)	(34)
Collateral posted/settlements for derivatives, (paid) returned	(2,274)	351)	(660)	284)	466)
Other	(5)	78)	78)	112)	69)
Net cash used in investing activities	(3,967)	(1,092)	(3,598)	(15,679)	(2,358)
Short-term borrowing, net issuances (repayments), maturities of 90 days or less	19)	(1,461)	530)	876)	—)
Short-term borrowing, issuances, maturities longer than 90 days	170)	100)	1,366)	934)	—)
Short-term borrowing, repayments, maturities longer than 90 days	(170)	(433)	(1,172)	(795)	—)
Borrowings under credit facilities related to Swedish Match AB acquisition	—)	—)	—)	13,920)	—)
Repayments under credit facilities related to Swedish Match AB acquisition	—)	(3,168)	(4,430)	(4,000)	—)
Long-term debt proceeds	7,055)	8,142)	9,959)	5,965)	—)
Long-term debt repaid	(5,368)	(4,803)	(2,551)	(2,724)	(3,042)
Repurchases of common stock	—)	—)	—)	(209)	(775)
Dividends paid	(8,624)	(8,197)	(7,964)	(7,812)	(7,580)
Collateral received/settlements for derivatives, received (returned)	(693)	828)	(62)	27)	—)
Payments to acquire Swedish Match AB noncontrolling interests	—)	—)	(883)	(1,495)	—)
Noncontrolling interests activity and Other	(521)	(489)	(375)	(881)	(580)
Net cash provided by (used in) financing activities	(8,132)	(9,481)	(5,582)	3,806)	(11,977)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	504)	(536)	(95)	(213)	(417)
Cash, cash equivalents and restricted cash, increase (decrease)	638)	1,108)	(71)	(1,283)	(2,785)
Cash, cash equivalents and restricted cash, balance at beginning of year	4,254)	3,146)	3,217)	4,500)	7,285)
Cash, cash equivalents and restricted cash, balance at end of year	4,892)	4,254)	3,146)	3,217)	4,500)

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 cash flow statement reveals a generally strong operating cash flow performance over the five-year period, though with notable fluctuations influenced by significant investing and financing activities. Net earnings demonstrate volatility, initially decreasing from 2021 to 2023 before a substantial increase in 2025. Adjustments to reconcile net earnings to operating cash flows are consistently positive, contributing significantly to the overall operating cash flow.

Operating Activities: Net cash provided by operating activities remains consistently positive, ranging from approximately US$9.2 billion to US$12.2 billion annually. While generally stable, a slight dip is observed in 2023. Fluctuations in operating capital show considerable variability, with a large outflow in 2022 and 2025, partially offset by inflows in 2023 and 2024. Deferred income tax benefits consistently represent a cash outflow, increasing in magnitude over the period, particularly in 2025. Restructuring charges show a shift from outflows to inflows, peaking in 2024.
Investing Activities: Investing activities are dominated by significant cash outflows, particularly in 2022 due to the acquisition of Swedish Match AB. Capital expenditures remain consistently negative, indicating ongoing investment in property, plant, and equipment, with a gradual increase each year. The Altria Group, Inc. agreement also resulted in substantial cash outflows in 2022 and 2023. Proceeds from sales of businesses provide some offsetting inflows, but are relatively small compared to the acquisition costs. Collateral posted/settlements for derivatives show significant volatility, moving from inflows to substantial outflows in 2025.
Financing Activities: Financing activities exhibit substantial variability. 2022 shows a significant net cash inflow, largely driven by borrowings related to the Swedish Match AB acquisition and long-term debt proceeds. Subsequent years, particularly 2023 and 2024, demonstrate substantial net cash outflows, primarily due to repayments of debt related to the acquisition, long-term debt repayment, and consistent dividend payments. Repurchases of common stock occurred in 2021 and 2022. Payments to acquire noncontrolling interests in Swedish Match AB also contribute to cash outflows in 2022 and 2023.
Cash Balance: Despite the significant cash outflows from investing and financing activities, the cash, cash equivalents, and restricted cash balance generally increased over the period, from US$7.285 billion in 2021 to US$4.892 billion in 2025. However, there were decreases in 2022 and 2023. The effect of exchange rate changes on cash fluctuates, with a notable inflow in 2025.

Overall, the company demonstrates a capacity to generate cash from operations, but its cash flow is significantly impacted by strategic acquisitions, debt management, and shareholder returns. The acquisition of Swedish Match AB represents a major event influencing cash flows across all three activities.

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Philip Morris International Inc. (NYSE:PM)

Cash Flow Statement