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Segment Reporting
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting:

PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes, other tobacco products and other nicotine-containing 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 the European Union; Eastern Europe, Middle East & Africa; Asia; and Latin America & Canada. PMI records net revenues and operating companies income to its segments based upon the geographic area in which the customer resides.

PMI’s management evaluates segment performance and allocates resources based on operating companies income, which PMI defines as operating income, excluding general corporate expenses and amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. 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 Nine Months Ended September 30,
 
For the Three Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Net revenues:
 
 
 
 
 
 
 
European Union
$
20,156

 
$
20,664

 
$
7,346

 
$
7,387

Eastern Europe, Middle East & Africa
13,177

 
13,650

 
4,990

 
5,122

Asia
16,051

 
15,014

 
5,846

 
5,113

Latin America & Canada
7,129

 
6,436

 
2,456

 
2,313

Net revenues
$
56,513

 
$
55,764

 
$
20,638

 
$
19,935

Earnings before income taxes:
 
 
 
 
 
 
 
Operating companies income:
 
 
 
 
 
 
 
European Union
$
2,783

 
$
3,096

 
$
1,042

 
$
1,120

Eastern Europe, Middle East & Africa
2,188

 
2,389

 
765

 
962

Asia
2,753

 
2,288

 
1,065

 
761

Latin America & Canada
709

 
677

 
264

 
224

Amortization of intangibles
(65
)
 
(56
)
 
(21
)
 
(19
)
General corporate expenses
(126
)
 
(119
)
 
(35
)
 
(36
)
Less:
 
 
 
 
 
 
 
Equity (income)/loss in unconsolidated subsidiaries, net
(57
)
 
(72
)
 
(12
)
 
(35
)
Operating income
8,185

 
8,203

 
3,068

 
2,977

Interest expense, net
(655
)
 
(690
)
 
(223
)
 
(220
)
Earnings before income taxes
$
7,530

 
$
7,513

 
$
2,845

 
$
2,757