Stock Analysis on Net
Stock Analysis on Net

Philip Morris International Inc. (NYSE:PM)

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
United States federal and state 465 201 (75) 73 (80)
Outside United States 2,668 2,468 2,553 2,616 2,600
Current 3,133 2,669 2,478 2,689 2,520
United States federal and state (81) (368) (139) 27 53
Outside United States (35) 38 (95) (45) (196)
Deferred (116) (330) (234) (18) (143)
Provision for income taxes 3,017 2,339 2,244 2,671 2,377

Based on: 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), 10-K (reporting date: 2020-12-31).

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 2022 to 2023 and from 2023 to 2024.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Philip Morris International Inc. deferred decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
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 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Foreign rate differences -1.60% -1.00% -0.50% -0.30% 0.60%
Dividend repatriation cost 0.60% 0.70% 0.60% 0.60% 0.40%
Global intangible low-taxed income 1.70% 2.00% 1.00% 0.80% 0.10%
U.S. state taxes 0.60% -0.10% 0.10% 0.20% 0.20%
Foreign derived intangible income -0.70% -0.90% -0.80% -0.70% -0.60%
Foreign exchange 1.70% -1.60% -1.70% 0.00% 0.00%
Non-deductible goodwill impairment 0.00% 1.30% 0.00% 0.00% 0.00%
Unremitted earnings of Russian subsidiaries 0.60% 1.70% 0.00% 0.00% 0.00%
Fair value adjustment of equity securities 1.10% 0.10% 0.10% 0.00% 0.00%
Other -0.30% -0.80% -0.50% 0.20% 0.00%
Effective tax rate 24.70% 22.40% 19.30% 21.80% 21.70%

Based on: 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), 10-K (reporting date: 2020-12-31).

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 2022 to 2023 and from 2023 to 2024.

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Accrued postretirement and postemployment benefits 208 223 217 234 225
Accrued pension costs 384 450 277 392 720
Inventory 40 27 22 177 232
Accrued liabilities 213 191 158 168 182
Net operating loss, tax credit, and other carryforwards 912 501 384 408 351
Investments in equity interests 507 — — — —
Foreign exchange — 149 — — 27
Other 62 19 — 112 124
Deferred income tax assets 2,326 1,560 1,058 1,491 1,861
Valuation allowance (1,130) (369) (378) (239) (250)
Deferred income tax assets, net of valuation allowance 1,196 1,191 680 1,252 1,611
Intangible assets (1,862) (2,136) (1,485) (591) (374)
Property, plant and equipment (152) (218) (200) (140) (200)
Unremitted earnings (495) (358) (141) (206) (311)
Foreign exchange (264) — (175) (146) —
Other — — (32) — —
Deferred income tax liabilities (2,773) (2,712) (2,033) (1,083) (885)
Net deferred income tax assets (liabilities) (1,577) (1,521) (1,353) 169 726

Based on: 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), 10-K (reporting date: 2020-12-31).

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 increased from 2022 to 2023 and from 2023 to 2024.
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 increased from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

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

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred income tax assets 940 814 603 895 1,410
Deferred income tax liabilities 2,517 2,335 1,956 726 684

Based on: 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), 10-K (reporting date: 2020-12-31).

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 increased from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

Philip Morris International Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 61,784 65,304 61,681 41,290 44,815
Less: Noncurrent deferred tax assets, net 940 814 603 895 1,410
Total assets (adjusted) 60,844 64,490 61,078 40,395 43,405
Adjustment to Total Liabilities
Total liabilities (as reported) 71,654 74,750 67,992 49,498 55,446
Less: Noncurrent deferred tax liabilities, net 2,517 2,335 1,956 726 684
Total liabilities (adjusted) 69,137 72,415 66,036 48,772 54,762
Adjustment to Total PMI Stockholders’ Deficit
Total PMI stockholders’ deficit (as reported) (11,750) (11,225) (8,957) (10,106) (12,567)
Less: Net deferred tax assets (liabilities) (1,577) (1,521) (1,353) 169 726
Total PMI stockholders’ deficit (adjusted) (10,173) (9,704) (7,604) (10,275) (13,293)
Adjustment to Net Earnings Attributable To PMI
Net earnings attributable to PMI (as reported) 7,057 7,813 9,048 9,109 8,056
Add: Deferred income tax expense (benefit) (116) (330) (234) (18) (143)
Net earnings attributable to PMI (adjusted) 6,941 7,483 8,814 9,091 7,913

Based on: 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), 10-K (reporting date: 2020-12-31).

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 18.63% 22.21% 28.49% 29.00% 28.08%
Adjusted net profit margin 18.32% 21.27% 27.75% 28.95% 27.58%
Total Asset Turnover
Reported total asset turnover 0.61 0.54 0.51 0.76 0.64
Adjusted total asset turnover 0.62 0.55 0.52 0.78 0.66
Financial Leverage
Reported financial leverage — — — — —
Adjusted financial leverage — — — — —
Return on Equity (ROE)
Reported ROE — — — — —
Adjusted ROE — — — — —
Return on Assets (ROA)
Reported ROA 11.42% 11.96% 14.67% 22.06% 17.98%
Adjusted ROA 11.41% 11.60% 14.43% 22.51% 18.23%

Based on: 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), 10-K (reporting date: 2020-12-31).

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 deteriorated from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Philip Morris International Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

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

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI 7,057 7,813 9,048 9,109 8,056
Net revenues 37,878 35,174 31,762 31,405 28,694
Profitability Ratio
Net profit margin1 18.63% 22.21% 28.49% 29.00% 28.08%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI 6,941 7,483 8,814 9,091 7,913
Net revenues 37,878 35,174 31,762 31,405 28,694
Profitability Ratio
Adjusted net profit margin2 18.32% 21.27% 27.75% 28.95% 27.58%

Based on: 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), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net earnings attributable to PMI ÷ Net revenues
= 100 × 7,057 ÷ 37,878 = 18.63%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to PMI ÷ Net revenues
= 100 × 6,941 ÷ 37,878 = 18.32%

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 deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net revenues 37,878 35,174 31,762 31,405 28,694
Total assets 61,784 65,304 61,681 41,290 44,815
Activity Ratio
Total asset turnover1 0.61 0.54 0.51 0.76 0.64
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues 37,878 35,174 31,762 31,405 28,694
Adjusted total assets 60,844 64,490 61,078 40,395 43,405
Activity Ratio
Adjusted total asset turnover2 0.62 0.55 0.52 0.78 0.66

Based on: 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), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 37,878 ÷ 61,784 = 0.61

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 37,878 ÷ 60,844 = 0.62

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 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 61,784 65,304 61,681 41,290 44,815
Total PMI stockholders’ deficit (11,750) (11,225) (8,957) (10,106) (12,567)
Solvency Ratio
Financial leverage1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 60,844 64,490 61,078 40,395 43,405
Adjusted total PMI stockholders’ deficit (10,173) (9,704) (7,604) (10,275) (13,293)
Solvency Ratio
Adjusted financial leverage2 — — — — —

Based on: 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), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 61,784 ÷ -11,750 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total PMI stockholders’ deficit
= 60,844 ÷ -10,173 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI 7,057 7,813 9,048 9,109 8,056
Total PMI stockholders’ deficit (11,750) (11,225) (8,957) (10,106) (12,567)
Profitability Ratio
ROE1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI 6,941 7,483 8,814 9,091 7,913
Adjusted total PMI stockholders’ deficit (10,173) (9,704) (7,604) (10,275) (13,293)
Profitability Ratio
Adjusted ROE2 — — — — —

Based on: 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), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 7,057 ÷ -11,750 = —

2 Adjusted ROE = 100 × Adjusted net earnings attributable to PMI ÷ Adjusted total PMI stockholders’ deficit
= 100 × 6,941 ÷ -10,173 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI 7,057 7,813 9,048 9,109 8,056
Total assets 61,784 65,304 61,681 41,290 44,815
Profitability Ratio
ROA1 11.42% 11.96% 14.67% 22.06% 17.98%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to PMI 6,941 7,483 8,814 9,091 7,913
Adjusted total assets 60,844 64,490 61,078 40,395 43,405
Profitability Ratio
Adjusted ROA2 11.41% 11.60% 14.43% 22.51% 18.23%

Based on: 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), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 7,057 ÷ 61,784 = 11.42%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to PMI ÷ Adjusted total assets
= 100 × 6,941 ÷ 60,844 = 11.41%

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 deteriorated from 2022 to 2023 and from 2023 to 2024.