Restructuring Activities: |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Restructuring Activities: | Restructuring Activities: For the six months and three months ended June 30, 2026, PMI recorded total pre-tax restructuring charges of $30 million and $6 million, respectively. For the six months and three months ended June 30, 2025, PMI recorded total pre-tax restructuring charges of $243 million. The pre-tax charges were included in marketing, administration and research costs in the condensed consolidated statements of earnings. As discussed in Note 8. Segment Reporting, marketing, administration and research costs, including restructuring charges, are not allocated to segments to determine the primary measure of segment profitability. U.S. Reorganization In the first quarter of 2026, the PMI U.S. organization announced a series of footprint optimization initiatives under the Further Integration Program (“FIP”). These initiatives include the planned closure of the Richmond office and the transition of certain roles and capabilities to strategic U.S. locations, primarily the newly established Business Solutions Center (“BSC”) in Tampa, Florida, and the PMI U.S. headquarters in Stamford, Connecticut. The program also includes the closure of the cigar manufacturing facility in Dothan, Alabama and the consolidation of its cigar production operations into PMI’s manufacturing footprint in the Dominican Republic. As a result of these actions, PMI recorded pre‑tax restructuring charges of $30 million for the six months ended June 30, 2026. These charges primarily included employee separation and other employee related costs of $25 million, and asset impairment charges of $5 million. For the full year 2026, PMI expects total pre‑tax restructuring charges associated with the FIP program to be approximately $50 million. Manufacturing Footprint Optimization - Germany As a result of declining demand for cigarettes and other combustible tobacco products in Europe, two of PMI’s German subsidiaries, Philip Morris Manufacturing GmbH and F6 Cigarettenfabrik GmbH & Co. KG, initiated consultations with employee representatives on October 29, 2024, on a proposal to end production in the factories located in Berlin and in Dresden by the end of the second quarter of 2025, and to seek to agree on fair solutions for any impacted employees. The consultation processes for both of these factories were concluded in April 2025, and as a result of the closure PMI recorded pre-tax restructuring charges of $243 million in the second quarter of 2025. This amount included pension and employee separation costs of $127 million and contract termination and other costs of $24 million, which were paid in cash, as well as asset impairment costs of $92 million, primarily related to property lease, and machinery and equipment, which were non-cash charges. Movement in Restructuring Related Liabilities The movement in restructuring related liabilities for the six months ended June 30, 2026 was as follows:
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