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Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Foreign Exchange Contracts
The fair value of PMI’s foreign exchange contracts included in the consolidated balance sheet as of December 31, 2017 and 2016, were as follows:
 
Asset Derivatives
 
Liability Derivatives
 
 
 
Fair Value
 
 
 
Fair Value
(in millions)
Balance Sheet Classification
 
2017
 
2016
 
Balance Sheet Classification
 
2017
 
2016
Foreign exchange contracts designated as hedging instruments
Other current
  assets
 
$
84

 
$
207

 
Other accrued 
  liabilities
 
$
197

 
$
66

 
Other assets
 
34

 
436

 
Other liabilities
 
880

 
36

Foreign exchange contracts not designated as hedging instruments
Other current
  assets
 
22

 
161

 
Other accrued
  liabilities
 
37

 
61

 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
—

 
9

 
Other liabilities
 
14

 
—

Total derivatives
 
 
$
140

 
$
813

 
 
 
$
1,128

 
$
163
Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings
For the years ended December 31, 2017, 2016 and 2015, PMI's cash flow and net investment hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows:

(pre-tax, millions)
For the Year Ended December 31,
 
Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives
 
Statement of Earnings
Classification of Gain/(Loss)
Reclassified from Other
Comprehensive
Earnings/(Losses) into
Earnings
 
Amount of Gain/(Loss) Reclassified from Other Comprehensive Earnings/(Losses) into Earnings
 
2017
 
2016
 
2015
 
 
 
2017
 
2016
2015
 
Derivatives in Cash Flow Hedging Relationship
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
(52
)
 
$
12

 
$
43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
$
60

 
$
(38
)
$
149

 
 
 
 
 
 
 
 
Cost of sales
 
1

 
46

(3
)
 
 
 
 
 
 
 
 
Marketing, administration and research costs
 
(7
)
 
(11
)
1

 
 
 
 
 
 
 
 
Interest expense, net
 
(41
)
 
(30
)
(31
)
 
Derivatives in Net Investment Hedging Relationship
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
(1,644
)
 
296

 
253

 
 
 
 
 
 
 
 
Total
$
(1,696
)
 
$
308

 
$
296

 
 
 
$
13

 
$
(33
)
$
116

 
Pre-Tax Effect of Foreign Exchange Contracts Not Designated as Hedging Instruments
As a result, for the years ended December 31, 2017, 2016 and 2015, these items impacted the consolidated statement of earnings as follows:

(pre-tax, in millions)
Derivatives not Designated as
Hedging Instruments
 
Statement of Earnings
Classification of Gain/(Loss)
Amount of Gain/(Loss)
Recognized in Earnings
 
 
 
2017
 
2016
 
2015
Foreign exchange contracts
 
 
 
 
 
 
 
 
 
Interest expense, net
$
(60
)
 
$
(24
)
 
$
(1
)
Total
 
 
$
(60
)
 
$
(24
)
 
$
(1
)
Hedging Activity Reported in Accumulated Other Comprehensive Earnings (Losses), Net of Income Taxes
Hedging activity affected accumulated other comprehensive losses, net of income taxes, as follows:

 
For the Years Ended December 31,
(in millions)
2017
 
2016
 
2015
Gain as of January 1,
$
97

 
$
59

 
$
123

Derivative (gains)/losses transferred to earnings
(11
)
 
30

 
(102
)
Change in fair value
(44
)
 
8

 
38

Gain as of December 31,
$
42

 
$
97

 
$
59