Asset Impairment and Exit Costs

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Asset Impairment and Exit Costs:

For the three months ended March 31, 2020, PMI did not record any pre-tax charges for asset impairment and exit costs.

Global Manufacturing Infrastructure Optimization

In light of declining PMI cigarette volumes resulting from lower total industry volumes and the shift to smoke-free alternatives, PMI continues to optimize its global manufacturing infrastructure. During 2019, PMI recorded asset impairment and exit costs related to plant closures in Argentina, Colombia, Germany and Pakistan as part of its global manufacturing infrastructure optimization.

For the three months ended March 31, 2019, PMI recorded pre-tax asset impairment and exit costs of $20 million related to a plant closure in Pakistan. This total pre-tax charge in the first quarter of 2019 was included in marketing, administration and research costs on the condensed consolidated statements of earnings and was included in the operating income of the South & Southeast Asia segment.

Movement in Exit Cost Liabilities

The movement in exit cost liabilities for the three months ended March 31, 2020 was as follows:



(in millions)
Liability balance, January 1, 2020	$	191
Charges, net	—
Cash spent	(48		)
Currency/other	(3		)
Liability balance, March 31, 2020	$	140

Future cash payments for exit costs incurred to date are anticipated to be substantially paid by the end of 2021, with approximately $66 million expected to be paid in the remainder of 2020.