Segment Reporting

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting:

PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. Reportable segments for PMI are organized and managed by geographic region. PMI’s reportable segments are European Union; Eastern Europe, Middle East & Africa; Asia; and Latin America & Canada.

PMI’s management evaluates segment performance and allocates resources based on operating companies income, which PMI defines as operating income before general corporate expenses and amortization of intangibles. Interest expense, net, and provision for income taxes are centrally managed and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management.

Segment data were as follows:

(in millions)	For the Three Months Ended March 31,
	2012			2011
Net revenues:
European Union	$	6,470		$	6,415
Eastern Europe, Middle East & Africa	4,069			3,671
Asia	5,177			4,288
Latin America & Canada	2,306			2,156
Net revenues	$	18,022		$	16,530
Earnings before income taxes:
Operating companies income:
European Union	$	1,030		$	1,006
Eastern Europe, Middle East & Africa	810			722
Asia	1,407			1,093
Latin America & Canada	237			251
Amortization of intangibles	(24		)	(24		)
General corporate expenses	(57		)	(41		)
Operating income	3,403			3,007
Interest expense, net	(213		)	(213		)
Earnings before income taxes	$	3,190		$	2,794

Items affecting the comparability of results from operations are asset impairment and exit costs. See Note 2. Asset Impairment and Exit Costs for a breakdown of these costs by segment.