Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Foreign Exchange Contracts

The fair value of PMI’s derivative exchange contracts included in the consolidated balance sheet as of December 31, 2019 and 2018, were as follows:

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
(in millions)	Balance Sheet Classification	2019		2018		Balance Sheet  Classification	2019		2018
Derivative contracts designated as hedging instruments	Other current assets	$	319	$	54	Other accrued liabilities	$	23	$	47
	Other assets	21		99		Income taxes and other liabilities	301		525
Derivative contracts not designated as hedging instruments	Other current assets	50		67		Other accrued liabilities	70		46
	Other assets	—		—		Income taxes and other liabilities	25		13
Total derivatives		$	390	$	220		$	419	$	631

Hedging Activities Effect on Consolidated Statements of Earnings and Other Comprehensive Earnings

For the years ended December 31, 2019, 2018 and 2017, PMI's cash flow and net investment hedging instruments impacted the consolidated statements of earnings and comprehensive earnings as follows:

(pre-tax, in 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
	2019			2018		2017				2019			2018			2017
Derivatives in Cash Flow Hedging Relationship
Derivative contracts	$	(20	)	$	28	$	(52	)
									Net revenues	$	22		$	18		$	60
									Cost of sales	1			—			1
									Marketing, administration and research costs	2			6			(7		)
									Interest expense, net	(8		)	(1		)	(41		)
Derivatives in Net Investment Hedging Relationship
Derivative contracts	369			324		(1,644		)
Total	$	349		$	352	$	(1,696	)		$	17		$	23		$	13

Pre-Tax Effect of Foreign Exchange Contracts Not Designated as Hedging Instruments

As a result, for the years ended December 31, 2019, 2018 and 2017, 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
		2019		2018		2017
Derivative contracts
	Interest expense, net	$	94	$	62	$	(60	)
Total		$	94	$	62	$	(60	)

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)	2019			2018			2017
Gain as of January 1,	$	35		$	42		$	97
Derivative (gains)/losses transferred to earnings	(14		)	(31		)	(11		)
Change in fair value	(18		)	24			(44		)
Gain as of December 31,	$	3		$	35		$	42