Asset Impairment and Exit Costs

3 Months Ended

Mar. 31, 2014

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,
	2014		2013
Separation programs:
Asia	$	23	$	—
Total separation programs	23		—
Contract termination charges:
Asia	—		3
Total contract termination charges	—		3
Asset impairment and exit costs	$	23	$	3

Exit Costs

Separation Programs

PMI recorded pre-tax separation program charges of $23 million for the three months ended March 31, 2014. These charges related to severance costs for a factory closure in Australia.

Contract Termination Charges

During the three months ended March 31, 2013, PMI recorded exit costs of $3 million related to the termination of distribution agreements.

Movement in Exit Cost Liabilities

The movement in exit cost liabilities for the three months ended March 31, 2014 was as follows:



(in millions)
Liability balance, January 1, 2014	$	308
Charges	23
Cash spent	(200		)
Currency/other	(7		)
Liability balance, March 31, 2014	$	124

Cash payments related to exit costs at PMI were $200 million and $5 million for the three months ended March 31, 2014 and 2013, respectively. Future cash payments for exit costs incurred to date are expected to be approximately $124 million, and will be substantially paid by the end of 2014.

- 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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