Philip Morris International Inc. (PMI) Reports 2012 Results; Provides 2013 Earnings Per Share Forecast
Regulatory News:
2012 Full-Year
-
Reported diluted earnings per share of $5.17, up by 6.6% versus $4.85
in 2011
-
Adjusted diluted earnings per share of $5.22, up by 7.0% versus $4.88
in 2011, or up by 11.7% excluding currency, as detailed in the
attached Schedule 16
-
Cigarette shipment volume, excluding acquisitions, up by 1.3%
-
Reported net revenues, excluding excise taxes, up by 0.9% to $31.4
billion
-
Excluding currency and acquisitions, reported net revenues,
excluding excise taxes, up by 5.6%
-
Reported operating companies income up by 4.0% to $14.2 billion
-
Excluding currency and acquisitions, reported operating companies
income up by 8.4%
-
Adjusted operating companies income, which reflects the items detailed
in the attached Schedule 15, up by 3.7% to $14.2 billion
-
Excluding currency and acquisitions, adjusted operating companies
income up by 8.1%
-
Operating income up by 3.9% to $13.8 billion
-
Increased its regular quarterly dividend during the year by 10.4% to
an annualized rate of $3.40 per common share
-
Repurchased 74.9 million shares of its common stock for $6.5 billion
-
Commenced a new three-year share repurchase program during the year of
$18 billion
2012 Fourth-Quarter
-
Reported diluted earnings per share of $1.25, up by 15.7% versus $1.08
in 2011
-
Adjusted diluted earnings per share of $1.24, up by 12.7% versus $1.10
in 2011, or up by 16.4% excluding currency, as detailed in the
attached Schedule 12
-
Cigarette shipment volume, excluding acquisitions, up by 2.9%,
-
Reported net revenues, excluding excise taxes, up by 2.8% to $7.9
billion
-
Excluding currency and acquisitions, reported net revenues,
excluding excise taxes, up by 6.4%
-
Reported operating companies income up by 9.5% to $3.3 billion
-
Excluding currency and acquisitions, reported operating companies
income up by 13.0%
-
Adjusted operating companies income, which reflects the items detailed
in the attached Schedule 11, up by 8.8% to $3.3 billion
-
Excluding currency and acquisitions, adjusted operating companies
income up by 12.3%
-
Operating income up by 9.5% to $3.2 billion
-
Repurchased 22.4 million shares of its common stock for $2.0 billion
2013
-
Forecasts 2013 full-year reported diluted earnings per share to be in
a range of $5.68 to $5.78, at prevailing exchange rates, versus $5.17
in 2012. Excluding a forecasted total unfavorable currency impact of
approximately $0.06 for the full-year 2013, the reported diluted
earnings per share range represents a projected increase of 10% to 12%
versus adjusted diluted earnings per share of $5.22 in 2012, as
detailed in the attached Schedule 16
-
Forecast includes a one-year gross productivity and cost savings
target for 2013 of approximately $300 million
-
Forecast includes a share repurchase target amount for 2013 of $6.0
billion
Philip Morris International Inc. (NYSE / Euronext Paris: PM) today
announced its 2012 full-year and fourth-quarter results.
“Our robust performance in 2012 across key operational metrics was all
the more impressive given the spectacular results in 2011 and the
continuing economic woes affecting all southern European nations,” said
Louis C. Camilleri, Chairman of the Board and Chief Executive Officer.
“We achieved organic volume growth of 1.3%, grew reported net revenues
and operating companies income, excluding currency and acquisitions, by
5.6% and 8.4%, respectively, and increased our total international
market share as well as that of our flagship brand, Marlboro.
“Every year since our spin-off in 2008, we have met or exceeded our
adjusted diluted mid to long-term annual EPS growth target, excluding
currency, of 10%-12%. The forecast we issued today for 2013 projects
another year of solid performance. This consistency underpins our
ability to generously reward our long-term shareholders with superior
returns.”
Conference Call
A conference call, hosted by Louis C. Camilleri, Chairman of the Board
and Chief Executive Officer, and Jacek Olczak, Chief Financial Officer,
with members of the investment community and news media, will be webcast
at 1:00 p.m., Eastern Time, on February 7, 2013. Access is available at www.pmi.com.
Dividends and Share Repurchase Program
PMI increased its regular quarterly dividend during the year to $0.85,
up by 10.4% from $0.77, which represents an annualized rate of $3.40 per
common share. Since its spin-off in March 2008, PMI has increased its
regular quarterly dividend five times, or by 84.8% from the initial
annualized rate of $1.84 per common share.
In July 2012, PMI completed ahead of schedule its three-year share
repurchase program of $12 billion that began in May 2010, and, in August
2012, initiated a new three-year share repurchase program of $18
billion. During the fourth quarter, PMI spent $2.0 billion to repurchase
22.4 million shares. For the full-year 2012, PMI spent $6.5 billion to
repurchase 74.9 million shares, as shown in the table below.
|
2012 PMI Share Repurchases
|
|
|
|
|
|
|
|
|
Value
|
|
|
|
Shares
|
|
|
|
|
|
|
|
|
($ Mio.)
|
|
|
|
000
|
|
|
$12 billion, three-year program
|
|
|
|
|
|
|
|
|
|
|
|
|
January - March
|
|
|
|
|
|
1,500
|
|
|
|
18,057
|
|
|
April - June
|
|
|
|
|
|
1,535
|
|
|
|
17,774
|
|
|
July
|
|
|
|
|
|
612
|
|
|
|
6,861
|
|
|
$18 billion, three-year program
|
|
|
|
|
|
|
|
|
|
|
|
|
August - September
|
|
|
|
|
|
893
|
|
|
|
9,825
|
|
|
October-December
|
|
|
|
|
|
1,960
|
|
|
|
22,380
|
|
|
Total
|
|
|
|
|
|
6,500
|
|
|
|
74,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since May 2008, when PMI began its first share repurchase program of $13
billion, which was completed in April 2010, the company has spent an
aggregate of $27.9 billion to repurchase 489.0 million shares at an
average price of $56.96 per share, or 23.2% of the shares outstanding at
the time of the spin-off in March 2008.
Included in PMI’s 2013 EPS forecast is a share repurchase target for the
full-year of $6.0 billion.
Productivity and Cost Savings Program
In 2012, PMI exceeded its one-year gross productivity and cost savings
target of $300 million primarily through the rationalization of tobacco
blends and product specifications and other manufacturing and
procurement initiatives.
PMI announces a one-year gross productivity and cost savings target for
2013 of approximately $300 million.
2013 Full-Year Forecast
PMI forecasts 2013 full-year reported diluted earnings per share to be
in a range of $5.68 to $5.78, at prevailing exchange rates, versus $5.17
in 2012. Excluding a forecasted total unfavorable currency impact of
approximately $0.06 for the full-year 2013, the reported diluted
earnings per share range represents a projected increase of 10% to 12%
versus adjusted diluted earnings per share of $5.22 in 2012, as detailed
in the attached Schedule 16.
The factors described in the Forward-Looking and Cautionary Statements
section of this release represent continuing risks to these projections.
This guidance excludes the impact of any potential future acquisitions,
unanticipated asset impairment and exit cost charges, and any unusual
events.
2012 FULL-YEAR AND FOURTH-QUARTER CONSOLIDATED
RESULTS
In this press release, “PMI” refers to Philip Morris International
Inc. and its subsidiaries. References to total international
cigarette market, defined as worldwide cigarette volume excluding the
United States, total cigarette market, total market and market shares
are PMI estimates based on the latest available data from a number of
internal and external sources and may, in defined instances, exclude the
People’s Republic of China and/or PMI’s duty-free business. The
term “net revenues” refers to operating revenues from the sale of our
products, excluding excise taxes and net of sales and promotion
incentives. Operating companies income, or “OCI”, is defined as
operating income before general corporate expenses and the amortization
of intangibles. PMI’s management evaluates business segment
performance and allocates resources based on OCI. Management also
reviews OCI, OCI margins and earnings per share, or “EPS”, on an
adjusted basis (which may exclude the impact of currency and other items
such as acquisitions, asset impairment and exit costs, discrete tax
items and unusual items), earnings before interest, taxes, depreciation,
and amortization, or “EBITDA”, free cash flow, defined as net cash
provided by operating activities less capital expenditures, and net debt.
PMI believes it is appropriate to disclose these measures as they
improve comparability and help investors analyze business performance
and trends. Non-GAAP measures used in this release should be
considered neither in isolation nor as a substitute for the financial
measures prepared in accordance with U.S. GAAP. Comparisons are
to the same prior-year period unless otherwise stated. For a
reconciliation of non-GAAP measures to corresponding GAAP measures, see
the relevant schedules provided with this release.
NET REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PMI Net Revenues ($ Millions)
|
|
|
|
|
|
Fourth-Quarter
|
|
|
Full-Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excl.
|
|
|
|
|
|
|
|
|
|
|
|
Excl.
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Curr.
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Curr.
|
|
European Union
|
|
|
|
$2,063
|
|
|
$2,208
|
|
|
(6.6)%
|
|
|
(0.5)%
|
|
|
$8,526
|
|
|
$9,212
|
|
|
(7.4)%
|
|
|
0.3%
|
|
Eastern Europe, Middle East & Africa
|
|
|
|
2,139
|
|
|
1,972
|
|
|
8.5%
|
|
|
11.3%
|
|
|
8,332
|
|
|
7,881
|
|
|
5.7%
|
|
|
11.6%
|
|
Asia
|
|
|
|
2,805
|
|
|
2,647
|
|
|
6.0%
|
|
|
8.1%
|
|
|
11,198
|
|
|
10,705
|
|
|
4.6%
|
|
|
5.7%
|
|
Latin America & Canada
|
|
|
|
882
|
|
|
844
|
|
|
4.5%
|
|
|
7.3%
|
|
|
3,321
|
|
|
3,299
|
|
|
0.7%
|
|
|
6.6%
|
|
Total PMI
|
|
|
|
$7,889
|
|
|
$7,671
|
|
|
2.8%
|
|
|
6.4%
|
|
|
$31,377
|
|
|
$31,097
|
|
|
0.9%
|
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Full-Year
Net revenues of $31.4 billion were up by 0.9%, including unfavorable
currency of $1.5 billion. Excluding currency and acquisitions, net
revenues increased by 5.6%, driven by favorable pricing across all
Regions of $1.8 billion. Volume/mix was essentially flat with gains in
EEMA and Asia offset by declines in the EU and Latin America & Canada.
2012 Fourth-Quarter
Net revenues of $7.9 billion were up by 2.8%, including unfavorable
currency of $270 million. Excluding currency and acquisitions, net
revenues increased by 6.4%, driven by favorable pricing across all
Regions of $422 million, and favorable volume/mix of $66 million driven
by EEMA and Asia, partly offset by the EU.
OPERATING COMPANIES INCOME
|
|
|
|
PMI Reported Operating Companies Income
($ Millions)
|
|
|
|
|
|
Fourth-Quarter
|
|
|
Full-Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excl.
|
|
|
|
|
|
|
|
|
|
|
|
Excl.
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Curr.
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Curr.
|
|
European Union
|
|
|
|
$955
|
|
|
$1,012
|
|
|
(5.6)%
|
|
|
2.1%
|
|
|
$4,187
|
|
|
$4,560
|
|
|
(8.2)%
|
|
|
0.2%
|
|
Eastern Europe, Middle East & Africa
|
|
|
|
921
|
|
|
747
|
|
|
23.3%
|
|
|
25.4%
|
|
|
3,726
|
|
|
3,229
|
|
|
15.4%
|
|
|
21.6%
|
|
Asia
|
|
|
|
1,129
|
|
|
1,036
|
|
|
9.0%
|
|
|
9.7%
|
|
|
5,197
|
|
|
4,836
|
|
|
7.5%
|
|
|
6.7%
|
|
Latin America & Canada
|
|
|
|
290
|
|
|
214
|
|
|
35.5%
|
|
|
37.4%
|
|
|
1,043
|
|
|
988
|
|
|
5.6%
|
|
|
11.9%
|
|
Total PMI
|
|
|
|
$3,295
|
|
|
$3,009
|
|
|
9.5%
|
|
|
13.0%
|
|
|
$14,153
|
|
|
$13,613
|
|
|
4.0%
|
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Full-Year
Reported operating companies income was up by 4.0% to $14.2 billion,
including unfavorable currency of $607 million. Excluding currency and
acquisitions, operating companies income was up by 8.4%, driven by
higher pricing, partly offset by unfavorable volume/mix of $233 million,
higher manufacturing costs, and increased marketing, sales and
distribution investments notably in Germany, Indonesia and Russia.
Adjusted operating companies income increased by 3.7% as shown in the
table below and detailed on Schedule 15. Adjusted operating companies
income, excluding currency and acquisitions, increased by 8.1%. Adjusted
operating companies income margin, excluding the impact of currency and
acquisitions, was up by 1.1 percentage points to 45.2%, as detailed on
Schedule 15.
2012 Fourth-Quarter
Reported operating companies income was up by 9.5% to $3.3 billion,
including unfavorable currency of $106 million. Excluding currency,
operating companies income was up by 13.0%, driven by higher pricing,
marginally offset by unfavorable volume/mix of $12 million. Adjusted
operating companies income increased by 8.8% as shown in the table below
and detailed on Schedule 11. Adjusted operating companies income,
excluding currency and acquisitions, increased by 12.3%. Adjusted
operating companies income margin, excluding the impact of currency and
acquisitions, was up by 2.2 percentage points to 42.1%, as detailed on
Schedule 11.
PMI Operating Companies Income ($
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter
|
|
|
|
Full-Year
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
Reported OCI
|
|
|
|
|
$3,295
|
|
|
|
$3,009
|
|
|
|
9.5%
|
|
|
|
$14,153
|
|
|
|
$13,613
|
|
|
|
4.0%
|
|
Asset impairment & exit costs
|
|
|
|
|
(33
|
)
|
|
|
(49
|
)
|
|
|
|
|
|
|
(83
|
)
|
|
|
(109
|
)
|
|
|
|
|
Adjusted OCI
|
|
|
|
|
$3,328
|
|
|
|
$3,058
|
|
|
|
8.8%
|
|
|
|
$14,236
|
|
|
|
$13,722
|
|
|
|
3.7%
|
|
Adjusted OCI Margin*
|
|
|
|
|
42.2
|
%
|
|
|
39.9
|
%
|
|
|
2.3 p.p.
|
|
|
|
45.4
|
%
|
|
|
44.1
|
%
|
|
|
1.3 p.p.
|
|
*Margins are calculated as adjusted OCI, divided by net revenues,
excluding excise taxes.
|
|
SHIPMENT VOLUME & MARKET SHARE
|
|
|
|
PMI Cigarette Shipment Volume by Segment
(Million Units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter
|
|
|
|
Full-Year
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
European Union
|
|
|
|
|
46,744
|
|
|
49,580
|
|
|
(5.7)%
|
|
|
|
197,966
|
|
|
211,493
|
|
|
(6.4)%
|
|
Eastern Europe, Middle East & Africa
|
|
|
|
|
77,356
|
|
|
72,218
|
|
|
7.1%
|
|
|
|
303,828
|
|
|
290,250
|
|
|
4.7%
|
|
Asia
|
|
|
|
|
82,573
|
|
|
78,095
|
|
|
5.7%
|
|
|
|
326,582
|
|
|
313,282
|
|
|
4.2%
|
|
Latin America & Canada
|
|
|
|
|
26,446
|
|
|
26,729
|
|
|
(1.1)%
|
|
|
|
98,660
|
|
|
100,241
|
|
|
(1.6)%
|
|
Total PMI
|
|
|
|
|
233,119
|
|
|
226,622
|
|
|
2.9%
|
|
|
|
927,036
|
|
|
915,266
|
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Full-Year
PMI’s cigarette shipment volume was up by 1.3%, excluding acquisitions.
Excluding acquisitions and the Japan hurdle of 6.3 billion units related
to additional volume shipped in the second quarter of 2011 following the
disruption of PMI’s principal competitor’s supply chain, PMI’s cigarette
shipment volume was up by a robust 2.0%.
In the EU, PMI’s total cigarette shipment volume decreased by 6.4%,
predominantly due to France and southern Europe. In EEMA, PMI’s total
cigarette shipment volume grew by 4.7%, driven mainly by Egypt, Russia
and Turkey. In Asia, PMI’s total cigarette shipment volume increased by
4.2%, driven mainly by Indonesia, the Philippines, Thailand and Vietnam,
partially offset by Japan and Korea. Excluding the Japan hurdle, PMI’s
cigarette shipment volume in Asia was up by 6.4%. In Latin America &
Canada, PMI’s total cigarette shipment volume decreased by 1.6%.
Total cigarette shipment volume of Marlboro of 301.6 billion
units was up by 0.5%, or by 1.1% excluding the Japan hurdle, reflecting
growth in: EEMA of 3.6%, notably in the Middle East, North Africa and
Turkey, partly offset by Romania, Russia and Ukraine; Asia of 3.6%,
principally driven by Indonesia, the Philippines and Vietnam, partly
offset by Japan and Korea; and Latin America & Canada of 0.7%, notably
in Brazil and Colombia, partly offset by Argentina. Cigarette shipments
of Marlboro declined in the EU by 4.6%, notably in France, Italy
and Spain.
Total cigarette shipment volume of L&M of 93.7 billion units
was up by 4.0%, reflecting growth in: EEMA of 8.6%, notably in Egypt,
Russia and Turkey; Asia of 14.8%, mainly in Thailand; and Latin America
& Canada of 6.9%, mainly in Brazil and Colombia. Cigarette shipment
volume of L&M declined in the EU by 4.1%, notably in Greece,
Poland and Spain, partly offset by growth in France.
Total cigarette shipment volume of Bond Street of 46.8 billion
units increased by 4.1%, led mainly by growth in Kazakhstan and Ukraine,
partly offset by a decline in Hungary.
Total cigarette shipment volume of Parliament of 43.4 billion
units was up by 10.1%, or by 11.1% excluding the Japan hurdle, fueled by
strong growth in EEMA of 16.5%, driven by Kazakhstan, Russia, Turkey and
Ukraine. Cigarette shipment volume of Parliament declined in Asia
by 4.3%, notably in Japan and Korea.
Total cigarette shipment volume of Philip Morris of 38.0 billion
units decreased by 3.2%, or by 1.4% excluding the Japan hurdle, mainly
reflecting a decline in Japan and the Philippines, partly offset by
growth in Argentina and Portugal.
Total cigarette shipment volume of Chesterfield of 35.5 billion
units was down by 3.2%, due mainly to Ukraine, partly offset by growth
in the EU, notably in Poland, Portugal and the United Kingdom.
Total cigarette shipment volume of Lark of 32.1 billion units
decreased by 4.6%, or increased by 3.5% excluding the Japan hurdle.
Excluding acquisitions, total shipment volume of other tobacco products
(OTP), in cigarette equivalent units, grew by 9.8%, notably in Belgium,
France, Germany, Greece, Italy and Spain, partly offset by Poland.
Excluding acquisitions, total shipment volume for cigarettes and OTP
combined was up by 1.5%. Excluding acquisitions and the Japan hurdle,
total shipment volume for cigarettes and OTP combined was up by 2.2%.
OTP, which is primarily sold within the EU Region, is not significant to
PMI’s net revenues.
PMI’s market share in its top 30 OCI markets was 37.4%, up by 0.6
points. PMI’s market share grew in a number of markets, notably Algeria,
Argentina, Australia, Belgium, Brazil, Colombia, Egypt, Greece,
Indonesia, Mexico, Poland, Russia, Thailand, Turkey and Ukraine.
2012 Fourth-Quarter
PMI’s cigarette shipment volume was up by 2.9%, excluding acquisitions.
In the EU, PMI’s total cigarette shipment volume decreased by 5.7%,
predominantly due to France and southern Europe. In EEMA, PMI’s total
cigarette shipment volume grew by 7.1%, driven mainly by Egypt and
Turkey. In Asia, PMI’s total cigarette shipment volume increased by
5.7%, driven mainly by Indonesia and the Philippines. In Latin America &
Canada, PMI’s total cigarette shipment volume decreased by 1.1%, mainly
due to Mexico, partly offset by Brazil reflecting market share gains.
Total cigarette shipment volume of Marlboro of 75.4 billion units
was up by 1.2%, reflecting growth in EEMA of 3.2%, notably in North
Africa and Turkey, partly offset by Romania, Russia and the Middle East,
and Asia of 5.6%, principally driven by Indonesia, the Philippines and
Vietnam, partly offset by Japan and Korea. Cigarette shipment volume of Marlboro
declined in the EU by 3.2%, notably in France, partly offset by
Germany and Italy, and in Latin America & Canada by 1.0%, mainly in
Argentina and Mexico, partly offset by Brazil.
Total cigarette shipment volume of L&M of 24.1 billion units
was up by 9.7%, reflecting growth in: EEMA of 20.1%, notably in Egypt,
Russia and Turkey; Asia of 12.4%, mainly in Thailand; and Latin America
& Canada of 5.0%, mainly in Brazil and Colombia. Cigarette shipment
volume of L&M declined in the EU by 3.4%, notably in Greece,
Poland and Spain, partly offset by growth in France.
Total cigarette shipment volume of Bond Street of 11.3 billion
units increased by 2.2%, led mainly by growth in Kazakhstan and Ukraine,
partly offset by a decline in Hungary.
Total cigarette shipment volume of Parliament of 11.3 billion
units was up by 12.4%, fueled by strong growth in EEMA of 22.4%, driven
by Kazakhstan, Russia, Turkey and Ukraine. Cigarette shipment volume of Parliament
declined in Asia by 10.2%, notably in Japan and Korea.
Total cigarette shipment volume of Philip Morris of 9.5 billion
units decreased by 2.0%, mainly reflecting a decline in Japan, the
Philippines and Spain, partly offset by growth in Argentina and Portugal.
Total cigarette shipment volume of Chesterfield of 8.4 billion
units was down by 5.9%, due mainly to Ukraine, partly offset by growth
in the EU, notably in the Czech Republic, Germany and the United Kingdom.
Total cigarette shipment volume of Lark of 7.9 billion units
increased by 7.8%, notably in Turkey, partly offset by Japan and Korea.
Excluding acquisitions, total shipment volume of OTP, in cigarette
equivalent units, grew by 2.7%, notably in Spain, partly offset by
Poland.
Excluding acquisitions, total shipment volume for cigarettes and OTP
combined was up by 2.9%. OTP, which is primarily sold within the EU
Region, is not significant to PMI’s net revenues.
PMI’s market share in its top 30 OCI markets was 37.9%, up by 1.1
points. PMI’s market share grew in a number of markets, notably Algeria,
Argentina, Australia, Belgium, Brazil, Colombia, Egypt, Indonesia,
Italy, Poland, Russia, Spain, Thailand, Turkey, the United Kingdom and
Ukraine.
EUROPEAN UNION REGION (EU)
2012 Full-Year
In the EU, net revenues decreased by 7.4% to $8.5 billion, due primarily
to unfavorable currency of $716 million. Excluding currency, net
revenues increased by 0.3%, mainly reflecting favorable pricing of $475
million, driven by France, Germany, Italy, the Netherlands, Poland,
Spain and Switzerland, partly offset by unfavorable volume/mix of $445
million, predominantly due to a lower total market and share in Italy,
France, Portugal and Spain.
Operating companies income decreased by 8.2% to $4.2 billion, due
primarily to unfavorable currency of $384 million. Excluding the
unfavorable impact of currency, operating companies income increased by
0.2%, reflecting higher pricing and favorable asset impairment and exit
costs compared to 2011, offset by: an unfavorable volume/mix of $380
million; higher manufacturing costs, mainly related to the mandated
implementation of reduced cigarette ignition propensity standards which
began in the fourth quarter of 2011; and higher marketing costs,
principally reflecting marketing investment behind new brand launches
and the roll-out of the “Be Marlboro” marketing campaign.
Adjusted operating companies income decreased by 9.0%, as shown in the
table below and detailed on Schedule 15. Adjusted operating companies
income, excluding currency, decreased by 0.6%.
EU Operating Companies Income ($ Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter
|
|
|
|
Full-Year
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
Reported OCI
|
|
|
|
|
$955
|
|
|
|
$1,012
|
|
|
|
(5.6)%
|
|
|
|
$4,187
|
|
|
|
$4,560
|
|
|
|
(8.2)%
|
|
Asset impairment & exit costs
|
|
|
|
|
(5
|
)
|
|
|
(22
|
)
|
|
|
|
|
|
|
(5
|
)
|
|
|
(45
|
)
|
|
|
|
|
Adjusted OCI
|
|
|
|
|
$960
|
|
|
|
$1,034
|
|
|
|
(7.2)%
|
|
|
|
$4,192
|
|
|
|
$4,605
|
|
|
|
(9.0)%
|
|
Adjusted OCI Margin*
|
|
|
|
|
46.5
|
%
|
|
|
46.8
|
%
|
|
|
(0.3) p.p.
|
|
|
|
49.2
|
%
|
|
|
50.0
|
%
|
|
|
(0.8) p.p.
|
|
*Margins are calculated as adjusted OCI, divided by net revenues,
excluding excise taxes.
Excluding the impact of currency, adjusted operating companies income
margin declined by 0.5 percentage points to 49.5%, as detailed on
Schedule 15, primarily as a result of the aforementioned higher
manufacturing and marketing costs.
The total cigarette market in the EU declined by 6.3% to 520 billion
units, due primarily to tax-driven price increases, the unfavorable
economic and employment environment, particularly in southern Europe,
the growth of the OTP category, and the increased prevalence of illicit
trade.
PMI’s cigarette shipment volume in the EU declined by 6.4%, due
principally to a lower total market across the Region. Shipment volume
of Marlboro decreased by 4.6%, mainly due to a lower total
market, partially offset by higher share. Shipment volume of L&M
was down by 4.1%. Shipment volume of Chesterfield was up by 4.7%.
PMI’s market share in the EU was essentially flat at 38.1% as gains,
notably in Belgium, Greece, Finland, Hungary and Poland were offset by
declines, primarily in the Czech Republic, France and Portugal. Marlboro’s
share was up by 0.3 points to 18.3%, its first year-on-year share gain
since 2002, reflecting a higher share mainly in Belgium, Greece,
Hungary, Italy and Poland, which more than offset lower share mainly in
France, the Netherlands, Portugal and Spain. L&M’s market
share was flat at 6.6%, with gains in Finland, Germany, Poland and the
Slovak Republic offset by declines notably in Greece and Portugal. Chesterfield’s
market share was up by 0.4 points to 3.7%, driven notably by gains in
Austria, the Czech Republic, France, Hungary, Poland, Portugal, Spain
and the United Kingdom. Philip Morris’ market share was up by 0.1
point to 2.1%, with gains, notably in the Czech Republic and Italy,
partly offset by a decline in Portugal and Spain.
PMI’s shipments of OTP, in cigarette equivalent units, grew by 16.1%,
reflecting a higher total market and share. PMI’s OTP total market share
was 12.2%, up by 1.1 points, driven by gains in the fine cut category,
notably in Belgium, up by 3.2 points to 16.3%, France, up by 0.9 points
to 25.2%, Germany, up by 0.7 points to 14.7%, Greece, up by 4.7 points
to 12.8%, Italy, up by 16.0 points to 27.9% and Spain, up by 1.1 points
to 11.7%.
2012 Fourth-Quarter
In the EU, net revenues decreased by 6.6% to $2.1 billion, due primarily
to unfavorable currency of $133 million, largely reflecting the
strengthening of the U.S. dollar to the Euro compared to the fourth
quarter of 2011. Excluding currency, net revenues decreased by 0.5%,
mainly due to unfavorable volume/mix of $105 million, predominantly
reflecting a lower total market and share, and unfavorable trade
inventory movements, in France and Italy, and a lower total market and
share in Portugal. The decrease was partly offset by favorable pricing
of $93 million, driven by France, Germany, the Netherlands, Poland,
Switzerland and the United Kingdom.
Operating companies income decreased by 5.6% to $955 million, due
primarily to unfavorable currency of $78 million. Excluding the
unfavorable impact of currency, operating companies income increased by
2.1%, reflecting higher pricing and favorable asset impairment and exit
costs compared to the fourth quarter of 2011, partly offset by higher
marketing costs, principally reflecting marketing investment behind the
“Be Marlboro” marketing campaign.
Adjusted operating companies income decreased by 7.2%, as shown in the
table above and detailed on Schedule 11. Adjusted operating companies
income, excluding currency, increased by 0.4%.
Excluding the impact of currency, adjusted operating companies income
margin was up by 0.5 percentage points to 47.3%, as detailed on Schedule
11.
The total cigarette market in the EU declined by 5.7% to 124.3 billion
units, due primarily to tax-driven price increases, the unfavorable
economic and employment environment, particularly in southern Europe,
the growth of the OTP category, and the increased prevalence of illicit
trade.
PMI’s cigarette shipment volume in the EU declined by 5.7%, due
principally to a lower total market across the Region. Shipment volume
of Marlboro decreased by 3.2%, mainly due to a lower total
market, partially offset by higher share. Shipment volume of L&M
was down by 3.4%. Shipment volume of Chesterfield was up by 4.7%.
PMI’s market share in the EU was up by 0.4 points to 38.4%. Market share
of Marlboro was up by 0.5 points to 18.5%, reflecting gains
mainly in Belgium, Greece, Hungary, Italy and Poland, which more than
offset lower share mainly in France, the Netherlands and Portugal. L&M’s
market share was up by 0.1 point to 6.8%. Chesterfield’s market
share was up by 0.4 points to 3.8%, driven notably by gains in Austria,
the Czech Republic, France, Portugal, Spain and the United Kingdom. Philip
Morris’ market share was up by 0.2 points to 2.1%, with gains,
notably in the Czech Republic, France, Italy and Portugal.
PMI’s shipments of OTP, in cigarette equivalent units, grew by 4.1%,
reflecting a higher total market and share. The decline in the growth
rate compared to the 2012 full-year growth rate principally reflects the
impact of excise tax-driven price increases, notably in Italy. PMI’s OTP
total market share was 12.3%, up by 0.6 points, driven by gains in the
fine cut category, notably in Belgium, up by 2.0 points to 16.3%,
France, up by 1.1 points to 26.1%, Greece, up by 3.7 points to 13.1%,
Italy, up by 6.6 points to 27.8% and Spain, up by 3.0 points to 13.1%.
EU Key Market Commentaries
In the Czech Republic, the total cigarette market was down by 2.8% to
20.5 billion units in 2012, mainly reflecting the impact of excise
tax-driven price increases in the first and second quarters of 2012 and
a more than 20% growth of the fine cut category over the full year. In
the fourth quarter of 2012, the total cigarette market was down by 0.7%
to 5.3 billion units. PMI’s shipments were down by 7.4% in 2012 and by
5.7% in the fourth quarter. Market share was down by 2.1 points to 42.2%
in 2012, principally reflecting continued share declines for
lower-margin local brands, such as Petra and Sparta, down
by a combined 1.2 points to 6.1%, and Red & White, down by
1.2 points to 11.7%. This decline was partly offset by a higher share
for Marlboro, Chesterfield and Philip Morris, up
by 0.2, 0.5 and 0.6 points to 7.4%, 0.8% and 2.9%, respectively. Market
share of L&M was essentially flat at 7.1%. PMI’s 2012
fourth-quarter market share was down by 2.1 points to 40.0%.
In France, the total cigarette market was down by 4.9% to 51.5 billion
units in 2012, mainly reflecting the impact of price increases in the
fourth quarters of 2011 and 2012. In the fourth quarter of 2012, the
total cigarette market was down by 7.2% to 11.6 billion units,
reflecting the unfavorable impact of the aforementioned price increase
which raised premium price products to €6.60 per pack, an increase in
illicit trade and growth of the OTP category. PMI’s shipments were down
by 7.7% in 2012 and by 11.9% in the fourth quarter. PMI’s market share
was down by 0.9 points to 39.6% in 2012, mainly due to Marlboro,
down by 0.9 points to 24.8%, and to L&M, down by 0.3 points
to 2.7%. Market share of premium Philip Morris was up by 0.1
point to 8.3% and share of Chesterfield was up by 0.2 points to
3.3%. PMI’s 2012 fourth-quarter market share was essentially flat at
40.1%. PMI’s market share of the fine cut category was up by 0.9 points
to 25.2% in 2012 and up by 1.1 points to 26.1% in the fourth quarter.
In Germany, the total cigarette market was down by 1.2% to 83.4 billion
units in 2012, flattered by trade inventory movements of competitors’
products in December ahead of the January 2013 excise tax increase. In
the fourth quarter of 2012, the total cigarette market was down by 0.2%
to 20.5 billion units, reflecting the favorable impact of the
aforementioned inventory movements. PMI’s shipments were down by 1.5% in
2012 and by 2.4% in the fourth quarter. PMI’s market share was
essentially unchanged at 35.8% in 2012, with Marlboro essentially
flat at 21.3%, L&M up by 0.1 point to 10.5% and Chesterfield
flat at 2.3%. While PMI’s 2012 fourth quarter market share was down by
0.8 points to 35.6%, reflecting the impact of the aforementioned
inventory movements, share of Marlboro was up by 0.1 point to
21.6%. PMI’s market share of the fine cut category was up by 0.7 points
to 14.7% in 2012 and up by 0.3 points to 14.6% in the fourth quarter.
In Italy, the total cigarette market was down by 7.9% to 78.7 billion
units in 2012, reflecting the impact of price increases in 2011 and
March 2012, an unfavorable economic environment, strong growth in the
fine cut category, and an increase in illicit trade. In the fourth
quarter of 2012, the total cigarette market was down by 4.0% to 19.0
billion units. PMI’s shipments were down by 7.3% in 2012 and by 4.8% in
the fourth quarter. PMI’s market share was essentially flat at 53.0% in
2012, with Marlboro, up by 0.6 points to 23.1%, fueled by the
March 2012 and June 2012 launches of Marlboro Silver and Marlboro
Pocket Pack, and Philip Morris, up by 0.4 points to 3.7%,
benefiting from the first-quarter 2012 launch of Philip Morris
Selection in the low-price segment, offset by low-price Diana,
down by 0.8 points to 12.4%. PMI’s 2012 fourth quarter market share was
up by 0.9 points to 53.2%, driven by Marlboro, up by 1.3 points
to 23.5%. PMI’s market share of the fine cut category was up by 16.0
points to 27.9% in 2012 and up by 6.6 points to 27.8% in the fourth
quarter.
In Poland, the total cigarette market was down by 6.1% to 52.1 billion
units in 2012, mainly reflecting the impact of price increases in the
first quarter of 2012 and growth in the availability of non-duty paid
OTP products. In the fourth quarter of 2012, the total cigarette market
was down by 10.0% to 11.5 billion units, reflecting the unfavorable
impact of the aforementioned factors. PMI’s shipments were down by 3.1%
in 2012, and by 4.3% in the fourth quarter. Market share was up by 1.1
points to 36.4% in 2012, benefiting from the launch of two new Marlboro
super slims variants in the second quarter. Market shares of Marlboro,
Chesterfield and L&M were up by 0.9, 0.4 and 0.7 points
to 11.3%, 1.8% and 16.6%, respectively. PMI’s 2012 fourth-quarter market
share was up by 2.3 points to 39.2%. PMI’s market share of the fine cut
category was up by 0.5 points to 17.8% in 2012 and down by 1.5 points to
15.5% in the fourth quarter.
In Spain, the total cigarette market was down by 11.7% to 53.5 billion
units in 2012, mainly reflecting the impact of price increases in the
second half of 2011 and second quarter of 2012, the unfavorable economic
environment, the growth of the OTP category and illicit trade. In the
fourth quarter of 2012, the total cigarette market was down by 14.0% to
12.1 billion units, reflecting the aforementioned factors and the
unfavorable impact of trade inventory movements. PMI’s shipments were
down by 11.4% in 2012 and by 5.7% in the fourth quarter. Market share
was down by 0.3 points to 30.6% in 2012, with higher share of Chesterfield,
revamped in the first quarter of 2012, up by 0.6 points to 9.0%, offset
by Marlboro, down by 0.4 points to 14.3% and Philip Morris,
down by 0.3 points to 0.7%. Market share of L&M was down by
0.2 points to 6.3%. PMI’s 2012 fourth quarter market share was up by 0.7
points to 31.3%. PMI’s market share of the fine cut category was up by
1.1 points to 11.7% in 2012 and up by 3.0 points to 13.1% in the fourth
quarter.
EASTERN EUROPE, MIDDLE EAST & AFRICA REGION
(EEMA)
2012 Full-Year
In EEMA, net revenues increased by 5.7% to $8.3 billion, including
unfavorable currency of $467 million. Excluding the impact of currency
and acquisitions, net revenues increased by 11.3%, primarily due to both
favorable pricing and volume/mix of $466 million and $425 million,
respectively.
Operating companies income increased by 15.4% to $3.7 billion, despite
unfavorable currency of $199 million. Excluding the impact of currency
and acquisitions, operating companies income increased by a strong
21.4%, due primarily to higher pricing, and favorable volume/mix of $317
million, partly offset by higher costs, principally related to
investments in marketing and business infrastructure mainly in Russia.
Adjusted operating companies income increased by 14.7%, as shown in the
table below and detailed on Schedule 15. Adjusted operating companies
income, excluding currency and acquisitions, increased by 20.7%.
|
EEMA Operating Companies Income ($
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter
|
|
|
|
Full-Year
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Reported OCI
|
|
|
|
|
$921
|
|
|
|
$747
|
|
|
23.3
|
%
|
|
|
|
$3,726
|
|
|
|
$3,229
|
|
|
|
15.4%
|
|
|
Asset impairment & exit costs
|
|
|
|
|
(5
|
)
|
|
|
(7)
|
|
|
|
|
|
|
(5
|
)
|
|
|
(25
|
)
|
|
|
|
|
|
Adjusted OCI
|
|
|
|
|
$926
|
|
|
|
$754
|
|
|
22.8
|
%
|
|
|
|
$3,731
|
|
|
|
$3,254
|
|
|
|
14.7%
|
|
|
Adjusted OCI Margin*
|
|
|
|
|
43.3
|
%
|
|
|
38.2%
|
|
|
5.1 p.p.
|
|
|
|
|
44.8
|
%
|
|
|
41.3
|
%
|
|
|
3.5 p.p.
|
|
*Margins are calculated as adjusted OCI, divided by net revenues,
excluding excise taxes.
Excluding the impact of currency and acquisitions, adjusted operating
companies income margin was up by 3.5 percentage points to 44.8%, as
detailed on Schedule 15.
PMI’s cigarette shipment volume in EEMA increased by 4.7%, mainly
reflecting improved market conditions and higher share in Egypt, a
higher market share in Russia, and a higher total market and share in
Turkey.
PMI’s cigarette shipment volume of premium brands grew by 6.7%, driven
by record volumes for Marlboro, up by 3.6%, and Parliament,
up by 16.5%.
2012 Fourth-Quarter
In EEMA, net revenues increased by 8.5% to $2.1 billion, including
unfavorable currency of $56 million. Excluding the impact of currency,
net revenues increased by 11.3%, primarily due to both favorable pricing
and volume/mix of $101 million and $122 million, respectively.
Operating companies income increased by 23.3% to $921 million, including
unfavorable currency of $16 million. Excluding the impact of currency
and acquisitions, operating companies income increased by 25.4%, due
primarily to higher pricing, and favorable volume/mix of $84 million.
Adjusted operating companies income increased by 22.8%, as shown in the
table above and detailed on Schedule 11. Adjusted operating companies
income, excluding currency, increased by 24.9%.
Excluding the impact of currency, adjusted operating companies income
margin was up by 4.7 percentage points to 42.9%, as detailed on Schedule
11.
PMI’s cigarette shipment volume in EEMA increased by 7.1%, mainly
reflecting improved market conditions and higher share in Egypt and a
higher total market and share in Turkey.
PMI’s cigarette shipment volume of premium brands grew by 7.7%, driven
by Marlboro, up by 3.2%, and by Parliament, up by 22.4%.
EEMA Key Market Commentaries
In Russia, the total cigarette market declined by an estimated 1.3% to
370 billion units. PMI’s shipment volume increased by 3.8% in 2012,
mainly reflecting a higher market share, and by 0.6% in the fourth
quarter. Shipment volume of PMI’s premium portfolio in 2012 was up by
7.0%, driven by Parliament, up by 15.0%. In the mid-price
segment, shipment volume was up by 4.8%, mainly due to L&M,
up by 20.4%. In the low-price segment, shipment volume was up by 2.3%,
driven by Apollo Soyuz, Bond Street and Next, up by
3.7%, 0.5% and 11.7%, respectively. PMI’s market share of 26.3%, as
measured by Nielsen, was up by 0.5 points. Market share of Parliament
was up by 0.3 points to 3.2%; Marlboro was essentially flat at
1.9%; L&M was up by 0.2 points to 2.6% and Chesterfield
was flat at 3.4%; Bond Street was up by 0.3 points to 6.5%;
Next was up by 0.2 points to 2.9%; and Apollo Soyuz and
Optima were flat at 1.4% and 3.2%, respectively. PMI’s 2012
fourth-quarter market share of 26.4%, as measured by Nielsen, was up by
0.2 points.
In Turkey, the total cigarette market increased by an estimated 8.8% to
99.2 billion units in 2012, reflecting: the favorable impact of trade
inventory movements in the fourth quarter of 2012 ahead of the January
2013 excise tax increase; a decrease in illicit trade; and a favorable
comparison with 2011 which experienced a 10.6% total cigarette market
decline in the last three months of the year resulting from excise
tax-driven price increases in the fourth quarter. In the fourth quarter
of 2012, the total cigarette market increased by an estimated 24.8% to
26.7 billion units, reflecting the favorable impact of the
aforementioned factors. PMI’s shipment volume increased by 12.7% in
2012, across each of the premium, mid-price and low price segments, up
by 15.0%, 16.6% and 9.8%, respectively, and by 33.8% in the fourth
quarter. PMI’s market share, as measured by Nielsen, grew by 0.9 points
to 45.7% in 2012, driven by premium Parliament, mid-price Muratti
and low-price Lark, up by 0.9, 0.4 and 0.3 share
points to 9.0%, 6.6% and 12.2%, respectively, partly offset by a decline
in low-price L&M, down by 0.3 points to 8.4%. Market share of Marlboro
was down by 0.1 point to 9.2%. PMI’s 2012 fourth-quarter market
share, as measured by Nielsen, grew by 1.7 points to 46.5%.
In Ukraine, the total cigarette market declined by an estimated 2.6% to
83.4 billion units in 2012. In the fourth quarter of 2012, the total
cigarette market was up by 0.7% to 18.6 billion units. PMI’s shipment
volume decreased by 0.6% in 2012 and increased by 3.8% in the fourth
quarter. PMI’s market share, as measured by Nielsen, was up by 0.2
points to 32.4%. Share for premium Parliament was up by 0.4
points to 3.2%. Share of Marlboro was flat at 5.8%, Chesterfield
was down by 0.5 points to 7.0% and Bond Street was up by 1.2
points to 8.4%. PMI’s 2012 fourth-quarter market share, as measured by
Nielsen, was up by 0.3 points to 32.8%.
ASIA REGION
2012 Full-Year
In Asia, net revenues increased by 4.6% to $11.2 billion, including
unfavorable currency of $116 million. Excluding the impact of currency,
net revenues increased by 5.7%, reflecting the favorable impact of
pricing of $551 million, principally in Australia, Indonesia, Korea and
the Philippines, and favorable volume/mix of $57 million.
Operating companies income increased by 7.5% to $5.2 billion. Excluding
the favorable impact of currency of $39 million, operating companies
income increased by 6.7%, primarily reflecting higher pricing, and
favorable shipping costs related to the Japan hurdle, partly offset by
unfavorable volume/mix of $99 million, mainly in Japan. Excluding Japan,
volume/mix was favorable, driven by Indonesia.
Adjusted operating companies income increased by 7.9% as shown in the
table below and detailed on Schedule 15. Adjusted operating companies
income, excluding currency, increased by 7.1%.
|
Asia Operating Companies Income ($
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter
|
|
|
|
Full-Year
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Reported OCI
|
|
|
|
|
$1,129
|
|
|
|
$1,036
|
|
|
|
9.0%
|
|
|
|
$5,197
|
|
|
|
$4,836
|
|
|
|
7.5%
|
|
|
Asset impairment & exit costs
|
|
|
|
|
(15
|
)
|
|
|
(8
|
)
|
|
|
|
|
|
|
(39
|
)
|
|
|
(15
|
)
|
|
|
|
|
|
Adjusted OCI
|
|
|
|
|
$1,144
|
|
|
|
$1,044
|
|
|
|
9.6%
|
|
|
|
$5,236
|
|
|
|
$4,851
|
|
|
|
7.9%
|
|
|
Adjusted OCI Margin*
|
|
|
|
|
40.8
|
%
|
|
|
39.4
|
%
|
|
|
1.4 p.p.
|
|
|
|
46.8
|
%
|
|
|
45.3
|
%
|
|
|
1.5 p.p.
|
|
*Margins are calculated as adjusted OCI, divided by net revenues,
excluding excise taxes.
Excluding the impact of currency, adjusted operating companies income
margin was up by 0.6 percentage points to 45.9%, as detailed on Schedule
15.
PMI’s cigarette shipment volume in Asia increased by 4.2%, driven by
growth in Indonesia, the Philippines, Thailand and Vietnam, partly
offset by a decline in Japan and Korea. PMI’s cigarette shipment volume
in Asia increased by 6.4% excluding the 6.3 billion units associated
with the 2011 Japan hurdle.
Shipment volume of Marlboro was up by 3.6%, driven by Indonesia,
the Philippines and Vietnam, partly offset by Japan and Korea. Shipment
volume of Marlboro was up by 6.0% excluding the related Japan
hurdle volume.
2012 Fourth-Quarter
In Asia, net revenues increased by 6.0% to $2.8 billion, including
unfavorable currency of $57 million. Excluding the impact of currency,
net revenues increased by 8.1%, reflecting the favorable impact of
pricing of $158 million, principally in Australia, Indonesia, Korea and
the Philippines, and favorable volume/mix of $57 million.
Operating companies income increased by 9.0% to $1.1 billion. Excluding
the unfavorable impact of currency of $8 million, operating companies
income increased by 9.7%, reflecting higher pricing and slightly
favorable volume/mix of $8 million, partly offset by higher costs,
mainly related to manufacturing in Indonesia.
Adjusted operating companies income increased by 9.6% as shown in the
table above and detailed on Schedule 11. Adjusted operating companies
income, excluding currency, increased by 10.3%.
Excluding the impact of currency, adjusted operating companies income
margin was up by 0.9 percentage points to 40.3%, as detailed on Schedule
11.
PMI’s cigarette shipment volume in Asia increased by 5.7%, driven by
growth notably in Indonesia and the Philippines, partly offset by a
decline in Japan and Korea.
Shipment volume of Marlboro was up by 5.6%, driven by Indonesia,
the Philippines and Vietnam, largely offset by Japan and Korea.
Asia Key Market Commentaries
In Indonesia, the total cigarette market was up by 8.2% to 302.5 billion
units in 2012, driven by growth in the premium and mid-price segments,
and up by 9.4% in the fourth quarter to 79.2 billion units. PMI’s
shipment volume grew by 17.5% in 2012 and by 15.4% in the fourth
quarter. PMI’s market share was up by 2.8 points to 35.6% in 2012,
driven notably by Sampoerna A in the premium segment, up by 1.1
points to 13.8%, and mid-price U Mild, up by 1.2 points to 3.3%. Marlboro’s
market share was up by 0.3 points to 4.8% and its share of the “white”
cigarettes segment increased by 4.9 points to 71.2%. Market share of Dji
Sam Soe was essentially flat at 7.8%. PMI’s 2012 fourth-quarter
market share was up by 1.9 points to 36.2%.
In Japan, the total cigarette market increased by 0.7% to 196.6 billion
units in 2012, reflecting a favorable comparison with 2011 driven by
trade inventory de-loading in the first quarter following the October
2010 excise tax-driven price increase. The estimated underlying decline
of the total cigarette market in 2012 was approximately 1%. In the
fourth quarter of 2012, the total cigarette market decreased by 2.0% to
50.1 billion units, mainly due to an unfavorable comparison with the
fourth quarter of 2011 which marked the first full quarter of product
supply by PMI’s principal competitor following the March earthquake.
PMI’s shipment volume was down by 9.7% in 2012, or up by 0.6% excluding
the additional hurdle volume of 6.3 billion units associated with 2011.
PMI’s 2012 fourth-quarter shipment volume decreased by 6.7%, reflecting
an unfavorable quarter-on-quarter comparison in respect of distributor
inventory movements, and lower market share. PMI’s market share was down
by 3.0 points to 27.7% in 2012, or down by 0.5 points compared to the
2011 exit share of 28.2%. While share of Marlboro was down by 0.7
points to 12.4%, it was essentially flat compared to its 2011 exit
share, supported by the introduction of new Marlboro menthol
variants during the year, and up by 1.0 point compared to its
pre-earthquake level. Share of Lark was down by 1.3 points to
8.4%, or by 0.2 points compared to its 2011 exit share of 8.6%. Share of Philip
Morris was down by 0.5 points to 2.3%, or by 0.2 points compared to
its 2011 exit share of 2.5%. While PMI’s 2012 fourth-quarter market
share was down by 0.5 points to 27.7%, it grew by 0.2 points versus the
third quarter of 2012.
In Korea, the total cigarette market was down by 0.9% to 89.3 billion
units in 2012. In the fourth quarter of 2012, the total cigarette market
decreased by 4.6% to 21.8 billion units. PMI’s shipment volume decreased
by 4.0% in 2012 and by 10.9% in the fourth quarter, reflecting the
impact of PMI’s price increases in February 2012. PMI’s market share in
2012 of 19.2% was down by 0.6 points. Market share of Marlboro
and Parliament was down by 0.8 points and 0.1 point to 7.8% and
6.6%, respectively, partly offset by Virginia Slims, up by 0.7
points to 4.1%. PMI’s 2012 fourth-quarter market share of 18.9% was down
by 1.3 points.
In the Philippines, the total cigarette market increased by 5.0% to
102.2 billion units in 2012, reflecting the growth in the low price
segment and trade loading of competitive products ahead of the excise
tax-driven price increase in January 2013. In the fourth quarter of
2012, the total cigarette market increased by 12.1% to 27.5 billion
units, reflecting the impact of the aforementioned factors. PMI’s
shipment volume increased by 1.3% in 2012 and was up by 5.0% in the
fourth quarter. PMI’s market share was down by 3.3 points to 90.7% in
2012, due primarily to share declines of Champion and Hope.
Marlboro’s market share was down by 0.2 points to 20.9%. Market
share of Fortune was up by 2.4 points to 49.4%. PMI’s 2012
fourth-quarter market share of 87.2% was down by 5.9 points, reflecting
the impact of the aforementioned trade inventory movements.
LATIN AMERICA & CANADA REGION
2012 Full-Year
In Latin America & Canada, net revenues increased by 0.7% to $3.3
billion, including unfavorable currency of $196 million. Excluding the
impact of currency, net revenues increased by 6.6%, reflecting favorable
pricing of $267 million, principally in Argentina, Brazil and Canada,
partially offset by unfavorable volume/mix of $49 million.
Operating companies income increased by 5.6% to $1.0 billion. Excluding
the unfavorable impact of currency of $63 million, operating companies
income increased by 11.9%, primarily reflecting favorable pricing,
partially offset by unfavorable volume/mix of $71 million and higher
costs, mainly related to the restructuring of manufacturing facilities
and distribution infrastructure. Adjusted operating companies income
increased by 6.4% as shown in the table below and detailed on Schedule
15. Adjusted operating companies income, excluding currency, increased
by 12.6%.
|
Latin America & Canada Operating
Companies Income ($ Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter
|
|
|
|
Full-Year
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
Reported OCI
|
|
|
|
|
$290
|
|
|
|
$214
|
|
|
|
35.5%
|
|
|
|
$1,043
|
|
|
|
$988
|
|
|
|
5.6%
|
|
|
Asset impairment & exit costs
|
|
|
|
|
(8
|
)
|
|
|
(12
|
)
|
|
|
|
|
|
|
(34
|
)
|
|
|
(24
|
)
|
|
|
|
|
|
Adjusted OCI
|
|
|
|
|
$298
|
|
|
|
$226
|
|
|
|
31.9%
|
|
|
|
$1,077
|
|
|
|
$1,012
|
|
|
|
6.4%
|
|
|
Adjusted OCI Margin*
|
|
|
|
|
33.8
|
%
|
|
|
26.8
|
%
|
|
|
7.0 p.p.
|
|
|
|
32.4
|
%
|
|
|
30.7
|
%
|
|
|
1.7 p.p.
|
|
*Margins are calculated as adjusted OCI, divided by net revenues,
excluding excise taxes.
Excluding the impact of currency, adjusted operating companies income
margin increased by 1.7 percentage points to 32.4%, as detailed on
Schedule 15.
PMI’s cigarette shipment volume in Latin America & Canada decreased
by 1.6%, mainly due to a lower total market in Argentina, Colombia
and Mexico and lower share in Canada. Shipment volume of Marlboro
increased by 0.7%, mainly reflecting market share growth in Brazil,
Colombia and Mexico.
2012 Fourth-Quarter
In Latin America & Canada, net revenues increased by 4.5% to $882
million, including unfavorable currency of $24 million. Excluding the
impact of currency, net revenues increased by 7.3%, reflecting favorable
pricing of $70 million, principally in Argentina, Brazil, Canada and
Mexico, partially offset by unfavorable volume/mix of $8 million.
Operating companies income increased by 35.5% to $290 million. Excluding
the unfavorable impact of currency of $4 million, operating companies
income increased by 37.4%, primarily reflecting favorable pricing and
lower costs, mainly related to manufacturing and the restructuring of
manufacturing facilities, partially offset by unfavorable volume/mix of
$19 million. Adjusted operating companies income increased by 31.9% as
shown in the table above and detailed on Schedule 11. Adjusted operating
companies income, excluding currency, increased by 33.6%.
Excluding the impact of currency, adjusted operating companies income
margin increased by 6.5 percentage points to 33.3%, as detailed on
Schedule 11.
PMI’s cigarette shipment volume in Latin America & Canada decreased
by 1.1%, principally due to a lower total market in Mexico. Shipment
volume of Marlboro decreased by 1.0%, mainly reflecting total
market declines in Argentina and Mexico, partly offset by market share
gains in Brazil and Colombia.
Latin America & Canada Key Market Commentaries
In Argentina, the total cigarette market declined by 0.9% to 43.4
billion units in 2012 and by 1.0% to 11.3 billion units in the fourth
quarter. PMI’s cigarette shipment volume in 2012 decreased by 0.3% and
by 1.1% in the fourth quarter. PMI’s 2012 market share was up by 0.9
points to 74.9%, reflecting growth of mid-price Philip Morris, up
by 1.4 share points to 39.4%, partly offset by low-price Next,
down by 0.5 points to 3.1%. Market share of Marlboro was flat at
24.1%. PMI’s 2012 fourth quarter market share was up by 0.4 points to
74.6%.
In Canada, the estimated total tax-paid cigarette market was essentially
flat at 32.2 billion units in 2012 and down by 1.2% to 8.1 billion units
in the fourth quarter. PMI’s cigarette shipment volume in 2012 declined
by 1.5% and was essentially flat in the fourth quarter. PMI’s market
share was down in 2012 by 0.6 points to 33.5%, primarily reflecting
share losses in the mid-price segment, reflecting fierce price
competition. Market share of premium brand Benson & Hedges
was essentially flat at 2.1%, premium Belmont was up by 0.2
points to 2.0% and low-price brand Next was up by 0.8 points to
7.7%, offset by mid-price Number 7 and Canadian Classics,
and low-price Accord and Quebec Classique, down by 0.2,
0.3, 0.4 and 0.3 share points, to 3.9%, 8.4%, 3.2% and 2.4%,
respectively. PMI’s 2012 fourth quarter market share was down by 0.7
points to 33.5%.
In Mexico, the total cigarette market was down by 2.2% to 33.6 billion
units in 2012, reflecting the impact of price increases in January 2012
and the continued wide prevalence of illicit products. The total
cigarette market was down by 4.5% to 9.0 billion units in the fourth
quarter. PMI’s cigarette shipment volume decreased by 0.6% in 2012 and
by 4.7% in the fourth quarter. PMI’s market share grew in 2012 by 1.2
points to 73.5%, led by Marlboro, up by 1.3 share points to a
record 53.6%. Market share of premium Benson & Hedges, the
second-largest brand in the premium segment, was up by 0.1 point
at 6.2% while share of low-price Delicados decreased by 0.5
points to 10.4%. PMI’s 2012 fourth quarter market share was essentially
flat at 73.0%.
Philip Morris International Inc. Profile
Philip Morris International Inc. (PMI) is the leading international
tobacco company, with seven of the world’s top 15 international brands,
including Marlboro, the number one cigarette brand worldwide.
PMI’s products are sold in more than 180 countries. In 2012, the company
held an estimated 16.3% share of the total international cigarette
market outside of the U.S., or 28.8% excluding the People’s Republic of
China and the U.S. For more information, see www.pmi.com.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and other
forward-looking statements. Achievement of projected results is subject
to risks, uncertainties and inaccurate assumptions. In the event that
risks or uncertainties materialize, or underlying assumptions prove
inaccurate, actual results could vary materially from those contained in
such forward-looking statements. Pursuant to the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995, PMI
is identifying important factors that, individually or in the aggregate,
could cause actual results and outcomes to differ materially from those
contained in any forward-looking statements made by PMI.
PMI’s business risks include: significant increases in cigarette-related
taxes; the imposition of discriminatory excise tax structures;
fluctuations in customer inventory levels due to increases in product
taxes and prices; increasing marketing and regulatory restrictions,
often with the goal of reducing or preventing the use of tobacco
products; health concerns relating to the use of tobacco products and
exposure to environmental tobacco smoke; litigation related to tobacco
use; intense competition; the effects of global and individual country
economic, regulatory and political developments; changes in adult smoker
behavior; lost revenues as a result of counterfeiting, contraband and
cross-border purchases; governmental investigations; unfavorable
currency exchange rates and currency devaluations; adverse changes in
applicable corporate tax laws; adverse changes in the cost and quality
of tobacco and other agricultural products and raw materials; and the
integrity of its information systems. PMI’s future profitability may
also be adversely affected should it be unsuccessful in its attempts to
produce products with the potential to reduce the risk of
smoking-related diseases; if it is unable to successfully introduce new
products, promote brand equity, enter new markets or improve its margins
through increased prices and productivity gains; if it is unable to
expand its brand portfolio internally or through acquisitions and the
development of strategic business relationships; or if it is unable to
attract and retain the best global talent.
PMI is further subject to other risks detailed from time to time in its
publicly filed documents, including the Form 10-Q for the quarter ended
September 30, 2012. PMI cautions that the foregoing list of important
factors is not a complete discussion of all potential risks and
uncertainties. PMI does not undertake to update any forward-looking
statement that it may make from time to time, except in the normal
course of its public disclosure obligations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 1
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Condensed Statements of Earnings
|
|
|
For the Quarters Ended December 31,
|
|
|
($ in millions, except per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
% Change
|
|
|
|
Net revenues
|
|
|
|
|
$
|
|
|
|
|
19,742
|
|
|
|
$
|
|
|
|
18,876
|
|
|
|
|
4.6
|
|
|
%
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
2,681
|
|
|
|
|
|
|
|
2,692
|
|
|
|
|
(0.4
|
)
|
|
%
|
|
|
|
Excise taxes on products (1) |
|
|
|
|
|
|
|
|
|
11,853
|
|
|
|
|
|
|
|
11,205
|
|
|
|
|
5.8
|
|
|
%
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
5,208
|
|
|
|
|
|
|
|
4,979
|
|
|
|
|
4.6
|
|
|
%
|
|
|
|
Marketing, administration and research costs
|
|
|
|
|
|
|
|
|
|
1,880
|
|
|
|
|
|
|
|
1,921
|
|
|
|
|
|
|
|
|
|
|
Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
|
33
|
|
|
|
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
Operating companies income
|
|
|
|
|
|
|
|
|
|
3,295
|
|
|
|
|
|
|
|
3,009
|
|
|
|
|
9.5
|
|
|
%
|
|
|
|
Amortization of intangibles
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
General corporate expenses
|
|
|
|
|
|
|
|
|
|
55
|
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
3,216
|
|
|
|
|
|
|
|
2,936
|
|
|
|
|
9.5
|
|
|
%
|
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
226
|
|
|
|
|
|
|
|
187
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
|
|
|
|
|
|
|
2,990
|
|
|
|
|
|
|
|
2,749
|
|
|
|
|
8.8
|
|
|
%
|
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
799
|
|
|
|
|
|
|
|
803
|
|
|
|
|
(0.5
|
)
|
|
%
|
|
|
|
Net earnings
|
|
|
|
|
|
|
|
|
|
2,191
|
|
|
|
|
|
|
|
1,946
|
|
|
|
|
12.6
|
|
|
%
|
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
96
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to PMI
|
|
|
|
|
$
|
|
|
|
|
2,095
|
|
|
|
$
|
|
|
|
1,886
|
|
|
|
|
11.1
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
$
|
|
|
|
|
1.25
|
|
|
|
$
|
|
|
|
1.08
|
|
|
|
|
15.7
|
|
|
%
|
|
|
|
Diluted earnings per share
|
|
|
|
|
$
|
|
|
|
|
1.25
|
|
|
|
$
|
|
|
|
1.08
|
|
|
|
|
15.7
|
|
|
%
|
|
|
|
|
|
|
(1) The segment detail of excise taxes on products sold for the
quarters ended December 31, 2012 and 2011 is shown on Schedule 2.
|
|
|
|
|
|
(2) Net earnings and weighted-average shares used in the basic and
diluted earnings per share computations for the quarters ended
December 31, 2012 and 2011 are shown on Schedule 4, Footnote 1.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Selected Financial Data by Business Segment
|
|
|
For the Quarters Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues excluding Excise Taxes
|
|
|
|
|
|
|
|
|
|
|
European
Union
|
|
|
EEMA
|
|
|
Asia
|
|
|
Latin
America &
Canada
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
Net Revenues (1) |
|
|
|
|
$
|
6,684
|
|
|
|
$
|
|
|
5,016
|
|
|
|
$
|
|
|
5,403
|
|
|
|
$
|
|
2,639
|
|
|
|
$
|
19,742
|
|
|
|
|
|
|
Excise Taxes on Products
|
|
|
|
|
|
(4,621
|
)
|
|
|
|
|
|
(2,877
|
)
|
|
|
|
|
|
(2,598
|
)
|
|
|
|
|
(1,757
|
)
|
|
|
|
(11,853
|
)
|
|
|
|
|
|
Net Revenues excluding Excise Taxes
|
|
|
|
|
|
2,063
|
|
|
|
|
|
|
2,139
|
|
|
|
|
|
|
2,805
|
|
|
|
|
|
882
|
|
|
|
|
7,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
Net Revenues
|
|
|
|
|
$
|
7,118
|
|
|
|
$
|
|
|
4,257
|
|
|
|
$
|
|
|
5,013
|
|
|
|
$
|
|
2,488
|
|
|
|
$
|
18,876
|
|
|
|
|
|
|
Excise Taxes on Products
|
|
|
|
|
|
(4,910
|
)
|
|
|
|
|
|
(2,285
|
)
|
|
|
|
|
|
(2,366
|
)
|
|
|
|
|
(1,644
|
)
|
|
|
|
(11,205
|
)
|
|
|
|
|
|
Net Revenues excluding Excise Taxes
|
|
|
|
|
|
2,208
|
|
|
|
|
|
|
1,972
|
|
|
|
|
|
|
2,647
|
|
|
|
|
|
844
|
|
|
|
|
7,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance
|
|
|
Currency
|
|
|
|
|
|
(133
|
)
|
|
|
|
|
|
(56
|
)
|
|
|
|
|
|
(57
|
)
|
|
|
|
|
(24
|
)
|
|
|
|
(270
|
)
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
(12
|
)
|
|
|
|
|
|
223
|
|
|
|
|
|
|
215
|
|
|
|
|
|
62
|
|
|
|
|
488
|
|
|
|
|
|
|
Variance Total
|
|
|
|
|
|
(145
|
)
|
|
|
|
|
|
167
|
|
|
|
|
|
|
158
|
|
|
|
|
|
38
|
|
|
|
|
218
|
|
|
|
|
|
|
Variance Total (%)
|
|
|
|
|
|
(6.6)%
|
|
|
|
|
|
|
8.5%
|
|
|
|
|
|
|
6.0%
|
|
|
|
|
|
4.5%
|
|
|
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance excluding Currency
|
|
|
|
|
|
(12
|
)
|
|
|
|
|
|
223
|
|
|
|
|
|
|
215
|
|
|
|
|
|
62
|
|
|
|
|
488
|
|
|
|
|
|
|
Variance excluding Currency (%)
|
|
|
|
|
|
(0.5)%
|
|
|
|
|
|
|
11.3%
|
|
|
|
|
|
|
8.1%
|
|
|
|
|
|
7.3%
|
|
|
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance excluding Currency & Acquisitions
|
|
|
|
|
|
(12
|
)
|
|
|
|
|
|
223
|
|
|
|
|
|
|
215
|
|
|
|
|
|
62
|
|
|
|
|
488
|
|
|
|
|
|
|
Variance excluding Currency & Acquisitions (%)
|
|
|
|
|
|
(0.5)%
|
|
|
|
|
|
|
11.3%
|
|
|
|
|
|
|
8.1%
|
|
|
|
|
|
7.3%
|
|
|
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2012 Currency decreased net revenues as follows:
|
|
|
|
|
|
European Union
|
|
|
|
|
$
|
(421
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EEMA
|
|
|
|
|
|
(131
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
|
|
|
|
|
(131
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America & Canada
|
|
|
|
|
|
(107
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 3
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Selected Financial Data by Business Segment
|
|
|
For the Quarters Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Companies Income
|
|
|
|
|
|
|
|
European
Union
|
|
|
EEMA
|
|
|
Asia
|
|
|
Latin
America &
Canada
|
|
|
Total
|
|
|
2012
|
|
|
|
|
$
|
955
|
|
|
|
$
|
|
|
921
|
|
|
|
$
|
|
|
|
1,129
|
|
|
|
$
|
|
290
|
|
|
|
$
|
|
|
3,295
|
|
|
|
2011
|
|
|
|
|
|
1,012
|
|
|
|
|
|
|
747
|
|
|
|
|
|
|
|
1,036
|
|
|
|
|
|
214
|
|
|
|
|
|
|
3,009
|
|
|
|
% Change
|
|
|
|
|
|
(5.6)%
|
|
|
|
|
|
|
23.3%
|
|
|
|
|
|
|
|
9.0%
|
|
|
|
|
|
35.5%
|
|
|
|
|
|
|
9.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended December 31, 2011
|
|
|
|
|
$
|
1,012
|
|
|
|
$
|
|
|
747
|
|
|
|
$
|
|
|
|
1,036
|
|
|
|
$
|
|
214
|
|
|
|
$
|
|
|
3,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 Asset impairment and exit costs
|
|
|
|
|
|
22
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
12
|
|
|
|
|
|
|
49
|
|
|
|
2012 Asset impairment and exit costs
|
|
|
|
|
|
(5
|
)
|
|
|
|
|
|
(5
|
)
|
|
|
|
|
|
|
(15
|
)
|
|
|
|
|
(8
|
)
|
|
|
|
|
|
(33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired businesses
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
Currency
|
|
|
|
|
|
(78
|
)
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
(8
|
)
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
(106
|
)
|
|
|
Operations
|
|
|
|
|
|
4
|
|
|
|
|
|
|
188
|
|
|
|
|
|
|
|
108
|
|
|
|
|
|
76
|
|
|
|
|
|
|
376
|
|
|
|
For the quarter ended December 31, 2012
|
|
|
|
|
$
|
955
|
|
|
|
$
|
|
|
921
|
|
|
|
$
|
|
|
|
1,129
|
|
|
|
$
|
|
290
|
|
|
|
$
|
|
|
3,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 4
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Diluted Earnings Per Share
|
|
|
For the Quarters Ended December 31,
|
|
|
($ in millions, except per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E.P.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
1.25
|
|
|
(1)
|
|
|
2011 Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
1.08
|
|
|
(1)
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
0.17
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.7
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
1.08
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
2012 Tax items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
2011 Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
2011 Tax items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
Change in tax rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
Impact of lower shares outstanding and share-based payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.13
|
|
|
|
|
|
2012 Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
1.25
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Basic and diluted EPS were calculated using the
following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2012
|
|
|
|
|
|
Q4
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to PMI
|
|
|
|
|
$
|
|
|
|
2,095
|
|
|
|
|
|
$
|
|
|
1,886
|
|
|
|
|
|
Less distributed and undistributed earnings attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to share-based payment awards
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
Net earnings for basic and diluted EPS
|
|
|
|
|
$
|
|
|
|
2,083
|
|
|
|
|
|
$
|
|
|
1,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares for basic EPS
|
|
|
|
|
|
|
|
|
1,664
|
|
|
|
|
|
|
|
|
1,733
|
|
|
|
|
|
Plus incremental shares from assumed conversions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Options
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Weighted-average shares for diluted EPS
|
|
|
|
|
|
|
|
|
1,664
|
|
|
|
|
|
|
|
|
1,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 5
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Condensed Statements of Earnings
|
|
|
For the Years Ended December 31,
|
|
|
($ in millions, except per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
% Change
|
|
|
Net revenues
|
|
|
|
$
|
|
|
77,393
|
|
|
|
$
|
|
|
|
76,346
|
|
|
|
1.4
|
|
|
%
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
10,373
|
|
|
|
|
|
|
|
10,678
|
|
|
|
(2.9
|
)
|
|
%
|
|
|
|
Excise taxes on products (1) |
|
|
|
|
|
|
46,016
|
|
|
|
|
|
|
|
45,249
|
|
|
|
1.7
|
|
|
%
|
|
|
|
Gross profit
|
|
|
|
|
|
|
21,004
|
|
|
|
|
|
|
|
20,419
|
|
|
|
2.9
|
|
|
%
|
|
|
|
Marketing, administration and research costs
|
|
|
|
|
|
|
6,768
|
|
|
|
|
|
|
|
6,697
|
|
|
|
|
|
|
|
|
|
Asset impairment and exit costs
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
|
109
|
|
|
|
|
|
|
|
|
|
Operating companies income
|
|
|
|
|
|
|
14,153
|
|
|
|
|
|
|
|
13,613
|
|
|
|
4.0
|
|
|
%
|
|
|
|
Amortization of intangibles
|
|
|
|
|
|
|
97
|
|
|
|
|
|
|
|
98
|
|
|
|
|
|
|
|
|
|
General corporate expenses
|
|
|
|
|
|
|
210
|
|
|
|
|
|
|
|
183
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
13,846
|
|
|
|
|
|
|
|
13,332
|
|
|
|
3.9
|
|
|
%
|
|
|
|
Interest expense, net
|
|
|
|
|
|
|
859
|
|
|
|
|
|
|
|
800
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
|
|
|
|
12,987
|
|
|
|
|
|
|
|
12,532
|
|
|
|
3.6
|
|
|
%
|
|
|
|
Provision for income taxes
|
|
|
|
|
|
|
3,833
|
|
|
|
|
|
|
|
3,653
|
|
|
|
4.9
|
|
|
%
|
|
|
|
Net earnings
|
|
|
|
|
|
|
9,154
|
|
|
|
|
|
|
|
8,879
|
|
|
|
3.1
|
|
|
%
|
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
|
|
|
|
354
|
|
|
|
|
|
|
|
288
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to PMI
|
|
|
|
$
|
|
|
8,800
|
|
|
|
$
|
|
|
|
8,591
|
|
|
|
2.4
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
$
|
|
|
5.17
|
|
|
|
$
|
|
|
|
4.85
|
|
|
|
6.6
|
|
|
%
|
|
|
|
Diluted earnings per share
|
|
|
|
$
|
|
|
5.17
|
|
|
|
$
|
|
|
|
4.85
|
|
|
|
6.6
|
|
|
%
|
|
|
|
|
|
|
(1) The segment detail of excise taxes on products sold for the
years ended December 31, 2012 and 2011 is shown on Schedule 6.
|
|
|
|
|
|
(2) Net earnings and weighted-average shares used in the basic and
diluted earnings per share computations for the years ended December
31, 2012 and 2011 are shown on Schedule 8, Footnote 1.
|
|
|
|
|
|
|
|
|
Schedule 6
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Selected Financial Data by Business Segment
|
|
|
For the Years Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues excluding Excise Taxes
|
|
|
|
|
|
|
|
|
|
|
European
Union
|
|
|
EEMA
|
|
|
Asia
|
|
|
Latin
America &
Canada
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
Net Revenues (1) |
|
|
|
|
$
|
27,338
|
|
|
|
$
|
|
|
19,272
|
|
|
|
$
|
|
|
21,071
|
|
|
|
$
|
|
9,712
|
|
|
|
$
|
|
77,393
|
|
|
|
|
|
|
Excise Taxes on Products
|
|
|
|
|
|
(18,812
|
)
|
|
|
|
|
|
(10,940
|
)
|
|
|
|
|
|
(9,873
|
)
|
|
|
|
|
(6,391
|
)
|
|
|
|
|
(46,016
|
)
|
|
|
|
|
|
Net Revenues excluding Excise Taxes
|
|
|
|
|
|
8,526
|
|
|
|
|
|
|
8,332
|
|
|
|
|
|
|
11,198
|
|
|
|
|
|
3,321
|
|
|
|
|
|
31,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
Net Revenues
|
|
|
|
|
$
|
29,768
|
|
|
|
$
|
|
|
17,452
|
|
|
|
$
|
|
|
19,590
|
|
|
|
$
|
|
9,536
|
|
|
|
$
|
|
76,346
|
|
|
|
|
|
|
Excise Taxes on Products
|
|
|
|
|
|
(20,556
|
)
|
|
|
|
|
|
(9,571
|
)
|
|
|
|
|
|
(8,885
|
)
|
|
|
|
|
(6,237
|
)
|
|
|
|
|
(45,249
|
)
|
|
|
|
|
|
Net Revenues excluding Excise Taxes
|
|
|
|
|
|
9,212
|
|
|
|
|
|
|
7,881
|
|
|
|
|
|
|
10,705
|
|
|
|
|
|
3,299
|
|
|
|
|
|
31,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance
|
|
|
Currency
|
|
|
|
|
|
(716
|
)
|
|
|
|
|
|
(467
|
)
|
|
|
|
|
|
(116
|
)
|
|
|
|
|
(196
|
)
|
|
|
|
|
(1,495
|
)
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
-
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
1
|
|
|
|
|
|
-
|
|
|
|
|
|
28
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
30
|
|
|
|
|
|
|
891
|
|
|
|
|
|
|
608
|
|
|
|
|
|
218
|
|
|
|
|
|
1,747
|
|
|
|
|
|
|
Variance Total
|
|
|
|
|
|
(686
|
)
|
|
|
|
|
|
451
|
|
|
|
|
|
|
493
|
|
|
|
|
|
22
|
|
|
|
|
|
280
|
|
|
|
|
|
|
Variance Total (%)
|
|
|
|
|
|
(7.4)%
|
|
|
|
|
|
|
5.7%
|
|
|
|
|
|
|
4.6%
|
|
|
|
|
|
0.7%
|
|
|
|
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance excluding Currency
|
|
|
|
|
|
30
|
|
|
|
|
|
|
918
|
|
|
|
|
|
|
609
|
|
|
|
|
|
218
|
|
|
|
|
|
1,775
|
|
|
|
|
|
|
Variance excluding Currency (%)
|
|
|
|
|
|
0.3%
|
|
|
|
|
|
|
11.6%
|
|
|
|
|
|
|
5.7%
|
|
|
|
|
|
6.6%
|
|
|
|
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance excluding Currency & Acquisitions
|
|
|
|
|
|
30
|
|
|
|
|
|
|
891
|
|
|
|
|
|
|
608
|
|
|
|
|
|
218
|
|
|
|
|
|
1,747
|
|
|
|
|
|
|
Variance excluding Currency & Acquisitions (%)
|
|
|
|
|
|
0.3%
|
|
|
|
|
|
|
11.3%
|
|
|
|
|
|
|
5.7%
|
|
|
|
|
|
6.6%
|
|
|
|
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2012 Currency decreased net revenues as follows:
|
|
|
|
|
|
European Union
|
|
|
|
|
$
|
(2,423
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EEMA
|
|
|
|
|
|
(1,468
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
|
|
|
|
|
(431
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America & Canada
|
|
|
|
|
|
(681
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(5,003
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 7
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Selected Financial Data by Business Segment
|
|
|
For the Years Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Companies Income
|
|
|
|
|
|
|
|
European
Union
|
|
|
EEMA
|
|
|
Asia
|
|
|
Latin
America &
Canada
|
|
|
Total
|
|
|
2012
|
|
|
|
|
$
|
|
4,187
|
|
|
|
$
|
|
|
3,726
|
|
|
|
$
|
|
|
5,197
|
|
|
|
$
|
|
1,043
|
|
|
|
$
|
|
14,153
|
|
|
|
2011
|
|
|
|
|
|
|
4,560
|
|
|
|
|
|
|
3,229
|
|
|
|
|
|
|
4,836
|
|
|
|
|
|
988
|
|
|
|
|
|
13,613
|
|
|
|
% Change
|
|
|
|
|
|
|
(8.2)%
|
|
|
|
|
|
|
15.4%
|
|
|
|
|
|
|
7.5%
|
|
|
|
|
|
5.6%
|
|
|
|
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2011
|
|
|
|
|
$
|
|
4,560
|
|
|
|
$
|
|
|
3,229
|
|
|
|
$
|
|
|
4,836
|
|
|
|
$
|
|
988
|
|
|
|
$
|
|
13,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 Asset impairment and exit costs
|
|
|
|
|
|
|
45
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
15
|
|
|
|
|
|
24
|
|
|
|
|
|
109
|
|
|
|
2012 Asset impairment and exit costs
|
|
|
|
|
|
|
(5
|
)
|
|
|
|
|
|
(5
|
)
|
|
|
|
|
|
(39
|
)
|
|
|
|
|
(34
|
)
|
|
|
|
|
(83
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired businesses
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
4
|
|
|
|
Currency
|
|
|
|
|
|
|
(384
|
)
|
|
|
|
|
|
(199
|
)
|
|
|
|
|
|
39
|
|
|
|
|
|
(63
|
)
|
|
|
|
|
(607
|
)
|
|
|
Operations
|
|
|
|
|
|
|
(29
|
)
|
|
|
|
|
|
672
|
|
|
|
|
|
|
346
|
|
|
|
|
|
128
|
|
|
|
|
|
1,117
|
|
|
|
For the year ended December 31, 2012
|
|
|
|
|
$
|
|
4,187
|
|
|
|
$
|
|
|
3,726
|
|
|
|
$
|
|
|
5,197
|
|
|
|
$
|
|
1,043
|
|
|
|
$
|
|
14,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 8
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Diluted Earnings Per Share
|
|
|
For the Years Ended December 31,
|
|
|
($ in millions, except per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
E.P.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Diluted Earnings Per Share
|
|
|
|
|
|
|
$
|
|
5.17
|
|
(1)
|
|
|
2011 Diluted Earnings Per Share
|
|
|
|
|
|
|
$
|
|
4.85
|
|
(1)
|
|
|
Change
|
|
|
|
|
|
|
$
|
|
0.32
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
6.6
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
2011 Diluted Earnings Per Share
|
|
|
|
|
|
|
$
|
|
4.85
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items:
|
|
|
|
|
|
|
|
|
|
|
2012 Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
2012 Tax items
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
2011 Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
2011 Tax items
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency
|
|
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
Change in tax rate
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
Impact of lower shares outstanding and share-based payments
|
|
|
|
|
|
|
|
|
0.20
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
0.38
|
|
|
|
|
2012 Diluted Earnings Per Share
|
|
|
|
|
|
|
$
|
|
5.17
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Basic and diluted EPS were calculated using the
following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD December
2012
|
|
|
YTD December
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to PMI
|
|
|
|
$
|
|
|
8,800
|
|
|
$
|
|
8,591
|
|
|
|
|
Less distributed and undistributed earnings attributable
|
|
|
|
|
|
|
|
|
|
|
to share-based payment awards
|
|
|
|
|
|
|
48
|
|
|
|
|
49
|
|
|
|
|
Net earnings for basic and diluted EPS
|
|
|
|
$
|
|
|
8,752
|
|
|
$
|
|
8,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares for basic EPS
|
|
|
|
|
|
|
1,692
|
|
|
|
|
1,761
|
|
|
|
|
Plus incremental shares from assumed conversions:
|
|
|
|
|
|
|
|
|
|
|
Stock Options
|
|
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
Weighted-average shares for diluted EPS
|
|
|
|
|
|
|
1,692
|
|
|
|
|
1,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 9
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Condensed Balance Sheets
|
|
|
($ in millions, except ratios)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
|
2,983
|
|
|
|
|
|
$
|
2,550
|
|
|
|
|
All other current assets
|
|
|
|
|
|
|
13,607
|
|
|
|
|
|
|
12,309
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
|
6,645
|
|
|
|
|
|
|
6,250
|
|
|
|
|
Goodwill
|
|
|
|
|
|
|
9,900
|
|
|
|
|
|
|
9,928
|
|
|
|
|
Other intangible assets, net
|
|
|
|
|
|
|
3,619
|
|
|
|
|
|
|
3,697
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
916
|
|
|
|
|
|
|
754
|
|
|
|
|
Total assets
|
|
|
|
|
|
$
|
37,670
|
|
|
|
|
|
$
|
35,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' (Deficit)
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
|
|
$
|
2,419
|
|
|
|
|
|
$
|
1,511
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
|
|
|
2,781
|
|
|
|
|
|
|
2,206
|
|
|
|
|
All other current liabilities
|
|
|
|
|
|
|
11,816
|
|
|
|
|
|
|
11,077
|
|
|
|
|
Long-term debt
|
|
|
|
|
|
|
17,639
|
|
|
|
|
|
|
14,828
|
|
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
1,875
|
|
|
|
|
|
|
1,976
|
|
|
|
|
Other long-term liabilities
|
|
|
|
|
|
|
2,993
|
|
|
|
|
|
|
2,127
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
39,523
|
|
|
|
|
|
|
33,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
|
|
|
|
1,301
|
|
|
|
|
|
|
1,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total PMI stockholders' (deficit) equity
|
|
|
|
|
|
|
(3,476
|
)
|
|
|
|
|
|
229
|
|
|
|
|
Noncontrolling interests
|
|
|
|
|
|
|
322
|
|
|
|
|
|
|
322
|
|
|
|
|
Total stockholders' (deficit) equity
|
|
|
|
|
|
|
(3,154
|
)
|
|
|
|
|
|
551
|
|
|
|
|
Total liabilities and stockholders' (deficit) equity
|
|
|
|
|
|
$
|
37,670
|
|
|
|
|
|
$
|
35,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
|
$
|
22,839
|
|
|
|
|
|
$
|
18,545
|
|
|
|
|
Total debt to EBITDA
|
|
|
|
|
|
|
1.55
|
|
(1)
|
|
|
|
|
1.29
|
|
(1)
|
|
|
Net debt to EBITDA
|
|
|
|
|
|
|
1.35
|
|
(1)
|
|
|
|
|
1.12
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the calculation of Total Debt to EBITDA and Net
Debt to EBITDA ratios, refer to Schedule 18.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 10
|
|
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
|
|
and Subsidiaries
|
|
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
|
|
Adjustments for the Impact of Currency and Acquisitions
|
|
|
|
|
For the Quarters Ended December 31,
|
|
|
|
|
($ in millions)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Change in Reported Net Revenues
excluding Excise Taxes
|
|
|
|
|
Reported Net
Revenues
|
|
Less
Excise
Taxes
|
|
Reported Net
Revenues
excluding
Excise Taxes
|
|
Less
Currency
|
|
Reported Net
Revenues
excluding
Excise Taxes
& Currency
|
|
Less
Acquisi-
tions
|
|
Reported Net
Revenues
excluding
Excise Taxes,
Currency &
Acquisitions
|
|
|
|
Reported
Net
Revenues
|
|
Less
Excise
Taxes
|
|
Reported Net
Revenues
excluding
Excise Taxes
|
|
Reported
|
|
Reported
excluding
Currency
|
|
Reported
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,684
|
|
$
|
4,621
|
|
$
|
2,063
|
|
$
|
(133
|
)
|
|
$
|
2,196
|
|
$
|
-
|
|
$
|
2,196
|
|
European Union
|
|
$
|
7,118
|
|
$
|
4,910
|
|
$
|
2,208
|
|
(6.6
|
)%
|
|
(0.5
|
)%
|
|
(0.5
|
)%
|
|
|
|
|
|
5,016
|
|
|
2,877
|
|
|
2,139
|
|
|
(56
|
)
|
|
|
2,195
|
|
|
-
|
|
|
2,195
|
|
EEMA
|
|
|
4,257
|
|
|
2,285
|
|
|
1,972
|
|
8.5
|
%
|
|
11.3
|
%
|
|
11.3
|
%
|
|
|
|
|
|
5,403
|
|
|
2,598
|
|
|
2,805
|
|
|
(57
|
)
|
|
|
2,862
|
|
|
-
|
|
|
2,862
|
|
Asia
|
|
|
5,013
|
|
|
2,366
|
|
|
2,647
|
|
6.0
|
%
|
|
8.1
|
%
|
|
8.1
|
%
|
|
|
|
|
|
2,639
|
|
|
1,757
|
|
|
882
|
|
|
(24
|
)
|
|
|
906
|
|
|
-
|
|
|
906
|
|
Latin America & Canada
|
|
|
2,488
|
|
|
1,644
|
|
|
844
|
|
4.5
|
%
|
|
7.3
|
%
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,742
|
|
$
|
11,853
|
|
$
|
7,889
|
|
$
|
(270
|
)
|
|
$
|
8,159
|
|
$
|
-
|
|
$
|
8,159
|
|
PMI Total
|
|
$
|
18,876
|
|
$
|
11,205
|
|
$
|
7,671
|
|
2.8
|
%
|
|
6.4
|
%
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Change in Reported Operating
Companies Income
|
|
|
|
|
Reported
Operating
Companies
Income
|
|
|
|
|
|
Less
Currency
|
|
Reported
Operating
Companies
Income
excluding
Currency
|
|
Less
Acquisi-
tions
|
|
Reported
Operating
Companies
Income
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
Reported
Operating
Companies
Income
|
|
Reported
|
|
Reported
excluding
Currency
|
|
Reported
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
955
|
|
|
|
|
|
$
|
(78
|
)
|
|
$
|
1,033
|
|
$
|
-
|
|
$
|
1,033
|
|
European Union
|
|
|
|
|
|
$
|
1,012
|
|
(5.6
|
)%
|
|
2.1
|
%
|
|
2.1
|
%
|
|
|
|
|
|
921
|
|
|
|
|
|
|
(16
|
)
|
|
|
937
|
|
|
-
|
|
|
937
|
|
EEMA
|
|
|
|
|
|
|
747
|
|
23.3
|
%
|
|
25.4
|
%
|
|
25.4
|
%
|
|
|
|
|
|
1,129
|
|
|
|
|
|
|
(8
|
)
|
|
|
1,137
|
|
|
-
|
|
|
1,137
|
|
Asia
|
|
|
|
|
|
|
1,036
|
|
9.0
|
%
|
|
9.7
|
%
|
|
9.7
|
%
|
|
|
|
|
|
290
|
|
|
|
|
|
|
(4
|
)
|
|
|
294
|
|
|
-
|
|
|
294
|
|
Latin America & Canada
|
|
|
|
|
|
|
214
|
|
35.5
|
%
|
|
37.4
|
%
|
|
37.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,295
|
|
|
|
|
|
$
|
(106
|
)
|
|
$
|
3,401
|
|
$
|
-
|
|
$
|
3,401
|
|
PMI Total
|
|
|
|
|
|
$
|
3,009
|
|
9.5
|
%
|
|
13.0
|
%
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 11
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Reconciliation of Reported Operating Companies Income to Adjusted
Operating Companies Income &
|
|
|
Reconciliation of Adjusted Operating Companies Income Margin,
excluding Currency and Acquisitions
|
|
|
|
|
For the Quarters Ended December 31,
|
|
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Change in Adjusted Operating
Companies Income
|
|
|
Reported
Operating
Companies
Income
|
|
Less
Asset
Impairment &
Exit Costs
|
|
Adjusted
Operating
Companies
Income
|
|
Less
Currency
|
|
Adjusted
Operating
Companies
Income
excluding
Currency
|
|
Less
Acquisi-
tions
|
|
Adjusted
Operating
Companies
Income
excluding
Currency &
Acquisitions
|
|
|
|
Reported
Operating
Companies
Income
|
|
Less
Asset
Impairment
& Exit Costs
|
|
Adjusted
Operating
Companies
Income
|
|
Adjusted
|
|
Adjusted
excluding
Currency
|
|
Adjusted
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
955
|
|
$
|
(5
|
)
|
|
$
|
960
|
|
|
$
|
(78
|
)
|
|
$
|
1,038
|
|
$
|
-
|
|
$
|
1,038
|
|
|
European Union
|
|
$
|
1,012
|
|
$
|
(22
|
)
|
|
$
|
1,034
|
|
|
(7.2
|
)%
|
|
0.4
|
%
|
|
0.4
|
%
|
|
|
|
921
|
|
|
(5
|
)
|
|
|
926
|
|
|
|
(16
|
)
|
|
|
942
|
|
|
-
|
|
|
942
|
|
|
EEMA
|
|
|
747
|
|
|
(7
|
)
|
|
|
754
|
|
|
22.8
|
%
|
|
24.9
|
%
|
|
24.9
|
%
|
|
|
|
1,129
|
|
|
(15
|
)
|
|
|
1,144
|
|
|
|
(8
|
)
|
|
|
1,152
|
|
|
-
|
|
|
1,152
|
|
|
Asia
|
|
|
1,036
|
|
|
(8
|
)
|
|
|
1,044
|
|
|
9.6
|
%
|
|
10.3
|
%
|
|
10.3
|
%
|
|
|
|
290
|
|
|
(8
|
)
|
|
|
298
|
|
|
|
(4
|
)
|
|
|
302
|
|
|
-
|
|
|
302
|
|
|
Latin America & Canada
|
|
|
214
|
|
|
(12
|
)
|
|
|
226
|
|
|
31.9
|
%
|
|
33.6
|
%
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,295
|
|
$
|
(33
|
)
|
|
$
|
3,328
|
|
|
$
|
(106
|
)
|
|
$
|
3,434
|
|
$
|
-
|
|
$
|
3,434
|
|
|
PMI Total
|
|
$
|
3,009
|
|
$
|
(49
|
)
|
|
$
|
3,058
|
|
|
8.8
|
%
|
|
12.3
|
%
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Points Change
|
|
|
Adjusted
Operating
Companies
Income
excluding
Currency
|
|
Net Revenues
excluding
Excise Taxes
& Currency(1)
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency
|
|
|
|
Adjusted
Operating
Companies
Income
excluding
Currency &
Acquisitions
|
|
Net Revenues
excluding
Excise Taxes,
Currency &
Acquisitions(1)
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency &
Acquisitions
|
|
|
|
Adjusted
Operating
Companies
Income
|
|
Net Revenues
excluding
Excise
Taxes(1)
|
|
Adjusted
Operating
Companies
Income
Margin
|
|
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,038
|
|
$
|
2,196
|
|
|
|
47.3
|
%
|
|
|
|
$
|
1,038
|
|
$
|
2,196
|
|
|
47.3
|
%
|
|
European Union
|
|
$
|
1,034
|
|
$
|
2,208
|
|
|
|
46.8
|
%
|
|
|
|
0.5
|
|
|
0.5
|
|
|
|
|
942
|
|
|
2,195
|
|
|
|
42.9
|
%
|
|
|
|
|
942
|
|
|
2,195
|
|
|
42.9
|
%
|
|
EEMA
|
|
|
754
|
|
|
1,972
|
|
|
|
38.2
|
%
|
|
|
|
4.7
|
|
|
4.7
|
|
|
|
|
1,152
|
|
|
2,862
|
|
|
|
40.3
|
%
|
|
|
|
|
1,152
|
|
|
2,862
|
|
|
40.3
|
%
|
|
Asia
|
|
|
1,044
|
|
|
2,647
|
|
|
|
39.4
|
%
|
|
|
|
0.9
|
|
|
0.9
|
|
|
|
|
302
|
|
|
906
|
|
|
|
33.3
|
%
|
|
|
|
|
302
|
|
|
906
|
|
|
33.3
|
%
|
|
Latin America & Canada
|
|
|
226
|
|
|
844
|
|
|
|
26.8
|
%
|
|
|
|
6.5
|
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,434
|
|
$
|
8,159
|
|
|
|
42.1
|
%
|
|
|
|
$
|
3,434
|
|
$
|
8,159
|
|
|
42.1
|
%
|
|
PMI Total
|
|
$
|
3,058
|
|
$
|
7,671
|
|
|
|
39.9
|
%
|
|
|
|
2.2
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the calculation of net revenues excluding excise
taxes, currency and acquisitions, refer to Schedule 10.
|
|
|
|
|
|
|
|
|
Schedule 12
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and
Adjusted Diluted EPS, excluding Currency
|
|
|
For the Quarters Ended December 31,
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS
|
|
|
|
|
|
$
|
|
|
1.25
|
|
|
|
|
|
$
|
|
|
|
1.08
|
|
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
Tax items
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
|
|
|
|
|
|
$
|
|
|
1.24
|
|
|
|
|
|
$
|
|
|
|
1.10
|
|
|
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS, excluding Currency
|
|
|
|
|
|
$
|
|
|
1.28
|
|
|
|
|
|
$
|
|
|
|
1.10
|
|
|
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
Schedule 13
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Reconciliation of Reported Diluted EPS to Reported Diluted EPS,
excluding Currency
|
|
|
For the Quarters Ended December 31,
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS
|
|
|
|
|
|
$
|
|
|
1.25
|
|
|
|
|
|
$
|
|
|
|
1.08
|
|
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS, excluding Currency
|
|
|
|
|
|
$
|
|
|
1.29
|
|
|
|
|
|
$
|
|
|
|
1.08
|
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 14
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Adjustments for the Impact of Currency and Acquisitions
|
|
|
For the Years Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Change in Reported Net Revenues
excluding Excise Taxes
|
|
|
Reported Net
Revenues
|
|
Less
Excise
Taxes
|
|
Reported Net
Revenues
excluding
Excise Taxes
|
|
Less
Currency
|
|
Reported Net
Revenues
excluding
Excise Taxes
& Currency
|
|
Less
Acquisi-
tions
|
|
Reported Net
Revenues
excluding
Excise Taxes,
Currency &
Acquisitions
|
|
|
|
Reported
Net
Revenues
|
|
Less
Excise
Taxes
|
|
Reported
Net
Revenues
excluding
Excise
Taxes
|
|
Reported
|
|
Reported
excluding
Currency
|
|
Reported
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,338
|
|
$
|
18,812
|
|
$
|
8,526
|
|
$
|
(716
|
)
|
|
$
|
9,242
|
|
$
|
-
|
|
$
|
9,242
|
|
European Union
|
|
$
|
29,768
|
|
$
|
20,556
|
|
$
|
9,212
|
|
(7.4
|
)%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
|
|
19,272
|
|
|
10,940
|
|
|
8,332
|
|
|
(467
|
)
|
|
|
8,799
|
|
|
27
|
|
|
8,772
|
|
EEMA
|
|
|
17,452
|
|
|
9,571
|
|
|
7,881
|
|
5.7
|
%
|
|
11.6
|
%
|
|
11.3
|
%
|
|
|
|
21,071
|
|
|
9,873
|
|
|
11,198
|
|
|
(116
|
)
|
|
|
11,314
|
|
|
1
|
|
|
11,313
|
|
Asia
|
|
|
19,590
|
|
|
8,885
|
|
|
10,705
|
|
4.6
|
%
|
|
5.7
|
%
|
|
5.7
|
%
|
|
|
|
9,712
|
|
|
6,391
|
|
|
3,321
|
|
|
(196
|
)
|
|
|
3,517
|
|
|
-
|
|
|
3,517
|
|
Latin America & Canada
|
|
|
9,536
|
|
|
6,237
|
|
|
3,299
|
|
0.7
|
%
|
|
6.6
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
77,393
|
|
$
|
46,016
|
|
$
|
31,377
|
|
$
|
(1,495
|
)
|
|
$
|
32,872
|
|
$
|
28
|
|
$
|
32,844
|
|
PMI Total
|
|
$
|
76,346
|
|
$
|
45,249
|
|
$
|
31,097
|
|
0.9
|
%
|
|
5.7
|
%
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Change in Reported Operating
Companies Income
|
|
|
Reported
Operating
Companies
Income
|
|
|
|
|
|
Less
Currency
|
|
Reported
Operating
Companies
Income
excluding
Currency
|
|
Less
Acquisi-
tions
|
|
Reported
Operating
Companies
Income
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
Reported
Operating
Companies
Income
|
|
Reported
|
|
Reported
excluding
Currency
|
|
Reported
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,187
|
|
|
|
|
|
$
|
(384
|
)
|
|
$
|
4,571
|
|
$
|
-
|
|
$
|
4,571
|
|
European Union
|
|
|
|
|
|
$
|
4,560
|
|
(8.2
|
)%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
|
|
3,726
|
|
|
|
|
|
|
(199
|
)
|
|
|
3,925
|
|
|
4
|
|
|
3,921
|
|
EEMA
|
|
|
|
|
|
|
3,229
|
|
15.4
|
%
|
|
21.6
|
%
|
|
21.4
|
%
|
|
|
|
5,197
|
|
|
|
|
|
|
39
|
|
|
|
5,158
|
|
|
-
|
|
|
5,158
|
|
Asia
|
|
|
|
|
|
|
4,836
|
|
7.5
|
%
|
|
6.7
|
%
|
|
6.7
|
%
|
|
|
|
1,043
|
|
|
|
|
|
|
(63
|
)
|
|
|
1,106
|
|
|
-
|
|
|
1,106
|
|
Latin America & Canada
|
|
|
|
|
|
|
988
|
|
5.6
|
%
|
|
11.9
|
%
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,153
|
|
|
|
|
|
$
|
(607
|
)
|
|
$
|
14,760
|
|
$
|
4
|
|
$
|
14,756
|
|
PMI Total
|
|
|
|
|
|
$
|
13,613
|
|
4.0
|
%
|
|
8.4
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 15
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Reconciliation of Reported Operating Companies Income to Adjusted
Operating Companies Income &
|
|
|
Reconciliation of Adjusted Operating Companies Income Margin,
excluding Currency and Acquisitions
|
|
|
For the Years Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Change in Adjusted Operating
Companies Income
|
|
|
Reported
Operating
Companies
Income
|
|
Less
Asset
Impairment
& Exit Costs
|
|
Adjusted
Operating
Companies
Income
|
|
Less
Currency
|
|
Adjusted
Operating
Companies
Income
excluding
Currency
|
|
Less
Acquisi-
tions
|
|
Adjusted
Operating
Companies
Income
excluding
Currency &
Acquisitions
|
|
|
|
Reported
Operating
Companies
Income
|
|
Less
Asset
Impairment
& Exit Costs
|
|
Adjusted
Operating
Companies
Income
|
|
Adjusted
|
|
Adjusted
excluding
Currency
|
|
Adjusted
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,187
|
|
$
|
(5
|
)
|
|
$
|
4,192
|
|
|
$
|
(384
|
)
|
|
$
|
4,576
|
|
$
|
-
|
|
$
|
4,576
|
|
|
European Union
|
|
$
|
4,560
|
|
$
|
(45
|
)
|
|
$
|
4,605
|
|
|
(9.0
|
)%
|
|
(0.6
|
)%
|
|
(0.6
|
)%
|
|
|
|
3,726
|
|
|
(5
|
)
|
|
|
3,731
|
|
|
|
(199
|
)
|
|
|
3,930
|
|
|
4
|
|
|
3,926
|
|
|
EEMA
|
|
|
3,229
|
|
|
(25
|
)
|
|
|
3,254
|
|
|
14.7
|
%
|
|
20.8
|
%
|
|
20.7
|
%
|
|
|
|
5,197
|
|
|
(39
|
)
|
|
|
5,236
|
|
|
|
39
|
|
|
|
5,197
|
|
|
-
|
|
|
5,197
|
|
|
Asia
|
|
|
4,836
|
|
|
(15
|
)
|
|
|
4,851
|
|
|
7.9
|
%
|
|
7.1
|
%
|
|
7.1
|
%
|
|
|
|
1,043
|
|
|
(34
|
)
|
|
|
1,077
|
|
|
|
(63
|
)
|
|
|
1,140
|
|
|
-
|
|
|
1,140
|
|
|
Latin America & Canada
|
|
|
988
|
|
|
(24
|
)
|
|
|
1,012
|
|
|
6.4
|
%
|
|
12.6
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,153
|
|
$
|
(83
|
)
|
|
$
|
14,236
|
|
|
$
|
(607
|
)
|
|
$
|
14,843
|
|
$
|
4
|
|
$
|
14,839
|
|
|
PMI Total
|
|
$
|
13,613
|
|
$
|
(109
|
)
|
|
$
|
13,722
|
|
|
3.7
|
%
|
|
8.2
|
%
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
% Points Change
|
|
|
Adjusted
Operating
Companies
Income
excluding
Currency
|
|
Net Revenues
excluding
Excise Taxes
& Currency(1)
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency
|
|
|
|
Adjusted
Operating
Companies
Income
excluding
Currency &
Acquisitions
|
|
Net Revenues
excluding
Excise Taxes,
Currency &
Acquisitions(1)
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency &
Acquisitions
|
|
|
|
Adjusted
Operating
Companies
Income
|
|
Net Revenues
excluding
Excise
Taxes(1)
|
|
Adjusted
Operating
Companies
Income
Margin
|
|
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency
|
|
Adjusted
Operating
Companies
Income
Margin
excluding
Currency &
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,576
|
|
$
|
9,242
|
|
|
|
49.5
|
%
|
|
|
|
$
|
4,576
|
|
$
|
9,242
|
|
|
49.5
|
%
|
|
European Union
|
|
$
|
4,605
|
|
$
|
9,212
|
|
|
|
50.0
|
%
|
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
|
|
3,930
|
|
|
8,799
|
|
|
|
44.7
|
%
|
|
|
|
|
3,926
|
|
|
8,772
|
|
|
44.8
|
%
|
|
EEMA
|
|
|
3,254
|
|
|
7,881
|
|
|
|
41.3
|
%
|
|
|
|
3.4
|
|
|
3.5
|
|
|
|
|
5,197
|
|
|
11,314
|
|
|
|
45.9
|
%
|
|
|
|
|
5,197
|
|
|
11,313
|
|
|
45.9
|
%
|
|
Asia
|
|
|
4,851
|
|
|
10,705
|
|
|
|
45.3
|
%
|
|
|
|
0.6
|
|
|
0.6
|
|
|
|
|
1,140
|
|
|
3,517
|
|
|
|
32.4
|
%
|
|
|
|
|
1,140
|
|
|
3,517
|
|
|
32.4
|
%
|
|
Latin America & Canada
|
|
|
1,012
|
|
|
3,299
|
|
|
|
30.7
|
%
|
|
|
|
1.7
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,843
|
|
$
|
32,872
|
|
|
|
45.2
|
%
|
|
|
|
$
|
14,839
|
|
$
|
32,844
|
|
|
45.2
|
%
|
|
PMI Total
|
|
$
|
13,722
|
|
$
|
31,097
|
|
|
|
44.1
|
%
|
|
|
|
1.1
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the calculation of net revenues excluding excise
taxes, currency and acquisitions, refer to Schedule 14.
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 16
|
|
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
|
|
and Subsidiaries
|
|
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
|
|
Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and
Adjusted Diluted EPS, excluding Currency
|
|
|
|
|
For the Years Ended December 31,
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS
|
|
|
|
|
|
$
|
|
|
|
5.17
|
|
|
|
|
|
$
|
|
|
|
|
4.85
|
|
|
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment and exit costs
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
Tax items
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
|
|
|
|
|
|
$
|
|
|
|
5.22
|
|
|
|
|
|
$
|
|
|
|
|
4.88
|
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact
|
|
|
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS, excluding Currency
|
|
|
|
|
|
$
|
|
|
|
5.45
|
|
|
|
|
|
$
|
|
|
|
|
4.88
|
|
|
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Schedule 17
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Reconciliation of Reported Diluted EPS to Reported Diluted EPS,
excluding Currency
|
|
|
For the Years Ended December 31,
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS
|
|
|
|
|
|
$
|
|
|
|
5.17
|
|
|
|
|
|
$
|
|
|
|
|
4.85
|
|
|
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact
|
|
|
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS, excluding Currency
|
|
|
|
|
|
$
|
|
|
|
5.40
|
|
|
|
|
|
$
|
|
|
|
|
4.85
|
|
|
|
|
11.3
|
%
|
|
|
|
|
|
|
|
|
Schedule 18
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Calculation of Total Debt to EBITDA and Net Debt to EBITDA Ratios
|
|
|
($ in millions, except ratios)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
|
|
|
For the Year Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
|
|
|
|
$
|
12,987
|
|
|
|
|
$
|
12,532
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
859
|
|
|
|
|
|
800
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
898
|
|
|
|
|
|
993
|
|
|
EBITDA
|
|
|
|
|
|
|
$
|
14,744
|
|
|
|
|
$
|
14,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
|
|
|
$
|
2,419
|
|
|
|
|
$
|
1,511
|
|
|
Current portion of long-term debt
|
|
|
|
|
|
|
|
2,781
|
|
|
|
|
|
2,206
|
|
|
Long-term debt
|
|
|
|
|
|
|
|
17,639
|
|
|
|
|
|
14,828
|
|
|
Total Debt
|
|
|
|
|
|
|
$
|
22,839
|
|
|
|
|
$
|
18,545
|
|
|
Less: Cash and cash equivalents
|
|
|
|
|
|
|
|
2,983
|
|
|
|
|
|
2,550
|
|
|
Net Debt
|
|
|
|
|
|
|
$
|
19,856
|
|
|
|
|
$
|
15,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt to EBITDA
|
|
|
|
|
|
|
|
1.55
|
|
|
|
|
|
1.29
|
|
|
Net Debt to EBITDA
|
|
|
|
|
|
|
|
1.35
|
|
|
|
|
|
1.12
|
|
|
|
|
|
|
|
|
Schedule 19
|
|
|
PHILIP MORRIS INTERNATIONAL INC.
|
|
|
and Subsidiaries
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
Reconciliation of Operating Cash Flow to Free Cash Flow and Free
Cash Flow, excluding Currency
|
|
|
Reconciliation of Operating Cash Flow to Operating Cash Flow,
excluding Currency
|
|
|
For the Quarters and Years Ended December 31,
|
|
|
($ in millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
|
|
|
|
|
For the Years Ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities(a) |
|
|
|
|
$
|
|
|
1,650
|
|
|
$
|
|
|
|
961
|
|
|
71.7
|
%
|
|
|
|
$
|
|
|
9,421
|
|
|
|
$
|
|
|
|
10,529
|
|
|
(10.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
|
|
|
337
|
|
|
|
|
|
|
329
|
|
|
|
|
|
|
|
|
|
1,056
|
|
|
|
|
|
|
|
897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
$
|
|
|
1,313
|
|
|
$
|
|
|
|
632
|
|
|
+100
|
%
|
|
|
|
$
|
|
|
8,365
|
|
|
|
$
|
|
|
|
9,632
|
|
|
(13.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact
|
|
|
|
|
|
|
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
(152
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow, excluding currency
|
|
|
|
|
$
|
|
|
1,195
|
|
|
$
|
|
|
|
632
|
|
|
89.1
|
%
|
|
|
|
$
|
|
|
8,517
|
|
|
|
$
|
|
|
|
9,632
|
|
|
(11.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
|
|
|
|
|
For the Years Ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities(a) |
|
|
|
|
$
|
|
|
1,650
|
|
|
$
|
|
|
|
961
|
|
|
71.7
|
%
|
|
|
|
$
|
|
|
9,421
|
|
|
|
$
|
|
|
|
10,529
|
|
|
(10.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency impact
|
|
|
|
|
|
|
|
103
|
|
|
|
|
|
|
|
|
|
|
|
|
(213
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities,
excluding currency
|
|
|
|
|
$
|
|
|
1,547
|
|
|
$
|
|
|
|
961
|
|
|
61.0
|
%
|
|
|
|
$
|
|
|
9,634
|
|
|
|
$
|
|
|
|
10,529
|
|
|
(8.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Operating cash flow.
|
|
|
|
|