v3.26.3
Financial Instruments: (Tables)
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The gross notional amounts for outstanding derivatives at the end of each period were as follows:
(in millions)At September 30, 2026At December 31, 2025
Derivative contracts designated as hedging instruments:
Foreign exchange contracts$29,239 $29,062 
Interest rate contracts4,800 4,700 
Commodity contracts2 3 
Derivative contracts not designated as hedging instruments:
Foreign exchange contracts18,464 16,278 
Total$52,505 $50,043 
Fair Value of Derivative Contracts
The fair value of PMI’s derivative contracts included in the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025, were as follows:
Derivative AssetsDerivative Liabilities
Fair ValueFair Value
AtAtAtAt
(in millions)Balance Sheet ClassificationSeptember 30, 2026December 31, 2025Balance Sheet ClassificationSeptember 30, 2026December 31, 2025
Derivative contracts designated as hedging instruments:
Foreign exchange contractsOther current assets$554 $378 Other accrued liabilities$165 $499 
Other assets124 107 Other liabilities360 853 
Interest rate contractsOther current assets10 — Other accrued liabilities3 27 
Other assets— 77 Other liabilities166 — 
Commodity contractsOther current assets— — Other accrued liabilities— 1 
Derivative contracts not designated as hedging instruments:
Foreign exchange contracts
Other current assets 
519 91 Other accrued liabilities99 319 
Other assets17 — Other liabilities140 276 
Total gross amount derivatives contracts presented in the condensed consolidated balance sheets$1,224 $653 $933 $1,975 
Gross amounts not offset in the condensed consolidated balance sheets
Financial instruments(607)(444)(607)(444)
Cash collateral received/pledged(432)(183)(325)(1,374)
Net amount$185 $26 $1 $157 
Derivative Contracts Impact on the Condensed Consolidated Statements of Earnings and Other Comprehensive Earnings
For the nine months ended September 30, 2026 and 2025, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows:
(pre-tax, in millions)For the Nine Months Ended September 30,
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on DerivativesStatement of Earnings
Classification of Gain/(Loss)
on Derivatives		Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into EarningsAmount of Gain/(Loss) Recognized in Earnings
202620252026202520262025
Derivative contracts designated as hedging instruments:
Cash flow hedges:
Foreign exchange contracts$112 $(201)Net revenues$95 $79 
Marketing, administration and research costs21 (31)
Interest expense, net(1)(1)
Interest rate contracts12 2 Interest expense, net36 41 
Commodity contracts1 — Cost of sales— (6)
Fair value hedges:
Interest rate contracts
Interest expense, net (a)
$(220)$70 
Net investment hedges (b):
Foreign exchange contracts722 (1,940)
Interest expense, net (c)
254 219 
Derivative contracts not designated as hedging instruments:
Foreign exchange contractsInterest expense, net207 278 
Marketing, administration and research costs (d)
522 (1,359)
Total$847 $(2,139)$151 $82 $763 $(792)
(a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item
(b) Amount of gains (losses) on hedges of net investments principally related to changes in foreign currency exchange and interest rates between the Euro and U.S. dollar
(c) Represents the gains for amounts excluded from the effectiveness testing
(d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are largely offset by the (losses) and gains generated by the underlying intercompany and third-party loans being hedged
For the three months ended September 30, 2026 and 2025, PMI's derivative contracts impacted the condensed consolidated statements of earnings and comprehensive earnings as follows:
(pre-tax, in millions)For the Three Months Ended September 30,
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on DerivativesStatement of Earnings
Classification of Gain/(Loss)
on Derivatives		Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into EarningsAmount of Gain/(Loss) Recognized in Earnings
202620252026202520262025
Derivative contracts designated as hedging instruments:
Cash flow hedges:
Foreign exchange contracts$(36)$78 Net revenues$42 $16 
Marketing, administration and research costs9 (4)
Interest expense, net(1)— 
Interest rate contracts— 1 Interest expense, net12 13 
Commodity contracts— — Cost of sales— (2)
Fair value hedges:
Interest rate contracts
Interest expense, net (a)
$(152)$4 
Net investment hedges (b):
Foreign exchange contracts84 52 
Interest expense, net (c)
80 78 
Derivative contracts not designated as hedging instruments:
Foreign exchange contractsInterest expense, net72 95 
Marketing, administration and research costs (d)
205 (9)
Total$48 $131 $62 $23 $205 $168 
(a) The gains (losses) from these contracts are offset by the changes in the fair value of the hedged item
(b) Amount of gains (losses) on hedges of net investments principally related to changes in foreign currency exchange and interest rates between the Euro and U.S. dollar
(c) Represents the gains for amounts excluded from the effectiveness testing
(d) The gains (losses) from these contracts attributable to changes in foreign currency exchange rates are largely offset by the (losses) and gains generated by the underlying intercompany and third-party loans being hedged
Qualifying Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows:
(in millions)For the Nine Months Ended September 30,For the Three Months Ended September 30,
2026202520262025
Gain/(loss) as of beginning of period,$284 $467 $346 $182 
Derivative (gains)/losses transferred to earnings(125)(69)(52)(19)
Change in fair value105 (168)(30)67 
Gain/(loss) as of September 30,$264 $230 $264 $230 
Fair Value of Certain Other Investments At September 30, 2026, the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows:
(in millions)
September 30, 2026
Level 1$41,004 
Level 21,731