Asset Impairment And Exit Costs

3 Months Ended

Mar. 31, 2012

Restructuring and Related Activities [Abstract]

Asset Impairment and Exit Costs:

Pre-tax asset impairment and exit costs consisted of the following:



(in millions)	For the Three Months Ended March 31,
	2012		2011
Separation programs:
European Union	$	—	$	11
Eastern Europe, Middle East & Africa	—		2
Asia	—		2
Latin America & Canada	8		1
Total separation programs	8		16
Asset impairment and exit costs	$	8	$	16

Exit Costs

Separation Programs

PMI recorded pre-tax separation program charges of $8 million and $16 million for the three months ended March 31, 2012 and 2011, respectively. The 2012 pre-tax separation program charges related to severance costs for a factory restructuring. The 2011 pre-tax separation program charges primarily related to severance costs for factory and R&D restructurings in the European Union.

Movement in Exit Cost Liabilities

The movement in the exit cost liabilities for the three months ended March 31, 2012 was as follows:



(in millions)
Liability balance, January 1, 2012	$	28
Charges	8
Cash spent	(13		)
Currency/other	(1		)
Liability balance, March 31, 2012	$	22

Cash payments related to exit costs at PMI were $13 million and $5 million for the three months ended March 31, 2012 and 2011, respectively. Future cash payments for exit costs incurred to date are expected to be approximately $22 million, and will be substantially paid by the end of 2012.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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