v3.26.1
Indebtedness:
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Indebtedness: Indebtedness:
Short-term Borrowings:

At June 30, 2026 and December 31, 2025, PMI’s short-term borrowings and related average interest rates consisted of the following:
June 30, 2026December 31, 2025
(in millions)Amount OutstandingAverage RateAmount OutstandingAverage Rate
Commercial paper
$2,652 3.7 %$— — %
Bank loans
689 5.4 168 10.3 
$3,341 $168 
PMI continues to have access to liquidity in the commercial paper market through programs in place in the U.S. and in Europe having an aggregate issuance capacity of $8.0 billion.

Given the mix of PMI's legal entities and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country.

The fair values of PMI’s short-term borrowings at June 30, 2026 and December 31, 2025, based on current market interest rates, approximate carrying value.

Long-term Debt:

At June 30, 2026 and December 31, 2025, PMI’s long-term debt consisted of the following:

(in millions)June 30, 2026December 31, 2025
U.S. dollar notes, 1.750% to 6.375% (average interest rate 4.719%), due through 2044
$37,371 $37,430 
Foreign currency obligations:
Euro notes, 0.125% to 3.750% (average interest rate 2.039%), due through 2039
6,563 7,942 
Euro credit facility borrowing related to Swedish Match AB acquisition, (interest rate 2.859%), due 2027
1,711 2,944 
Swedish krona note, (interest rate 2.190%), due 2029
28 267 
Finance leases (average interest rate 4.552%), due through 2037
99 84 
Carrying value of long-term debt45,772 48,667 
Less current portion of long-term debt3,406 3,533 
 $42,366 $45,134 

The fair value of PMI’s outstanding long-term debt, which is utilized solely for disclosure purposes, is determined using quotes and market interest rates currently available to PMI for issuances of debt with similar terms and remaining maturities. At June 30, 2026, the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows:

(in millions)
June 30, 2026
Level 1$43,216 
Level 21,741 
For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Item 8, Note 2. Summary of Significant Accounting Policies of PMI's Annual Report on Form 10-K for the year ended December 31, 2025.
Debt Issuances

PMI's debt issuances in the first six months of 2026 were as follows:

(in millions)
TypeFace Value Interest RateIssuanceMaturity
U.S. dollar notes
(a)
$7504.125%April 2026April 2029
U.S. dollar notes
(a)
$7504.875%April 2026April 2036
(a) Interest is payable semi-annually, commencing in October 2026

The net proceeds from the sale of the securities listed in the table above have been or will be used for general corporate purposes, including working capital requirements, repayment of commercial paper or to refinance certain of our outstanding notes due in 2026.

Euro Term Loan Facility related to the Financing of the Swedish Match Acquisition

On June 29, 2026, PMI prepaid €1.0 billion (approximately $1.1 billion), including a portion of the outstanding principal and accrued interest, under the 5-year tranche of the term loan facility. Borrowings in the amount of €1.5 billion (approximately $1.7 billion) under the 5-year tranche of the term loan facility remain outstanding, expiring on June 23, 2027.


Revolving Credit Facilities:
At June 30, 2026, PMI's total committed revolving credit facilities were as follows:

(in billions)


Type
Committed
Revolving Credit
Facilities
Multi-year $2.0 billion revolving credit, expiring January 29, 2031
$2.0 
Multi-year $2.5 billion revolving credit, expiring September 29, 2026 (1) (2)
2.5 
Multi-year €1.5 billion revolving credit, expiring January 29, 2029
1.7 
Total facilities
$6.2 
(1) Includes pricing adjustments that may result in the reduction or increase in both the interest rate and commitment fee under the credit agreement if PMI achieves, or fails to achieve, certain specified targets.
(2) On September 20, 2022, PMI entered into an agreement, effective September 29, 2022, to amend and extend the term of its $2.5 billion multi-year revolving credit facility, for an additional year covering the period September 30, 2026 to September 29, 2027, in the amount of $2.3 billion. On September 20, 2023, PMI entered into an agreement, effective September 29, 2023, to amend and further extend the term to September 29, 2028.

At June 30, 2026, there were no borrowings under these committed revolving credit facilities, and the entire committed amounts were available for borrowing.
In addition to the committed revolving credit facilities discussed above, PMI maintains certain short-term credit arrangements, including uncommitted credit lines, to primarily meet working capital needs. These credit arrangements amounted to approximately $4.2 billion at June 30, 2026, and approximately $3.9 billion at December 31, 2025. Borrowings under these arrangements and other bank loans amounted to $689 million at June 30, 2026, and $168 million at December 31, 2025.