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Segment Reporting
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting:
PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other nicotine-containing products, including RRPs, in markets outside of the United States of America. In addition, PMI ships a version of its Platform 1 device and its consumables authorized by the FDA to Altria Group, Inc. for sale in the United States under license. Operating segments for PMI are organized by geographic region and managed by segment managers who are responsible for the operating and financial results of the regions inclusive of all product categories sold in the region. PMI’s operating segments are the European Union; Eastern Europe; Middle East & Africa; South & Southeast Asia; East Asia & Australia; and Latin America & Canada. PMI records net revenues and operating income to its segments based upon the geographic area in which the customer resides. Revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc. for sale under license in the United States are included in Net Revenues of the Latin America & Canada segment.

PMI’s chief operating decision maker evaluates segment performance and allocates resources based on regional operating income, which includes results from all product categories sold in each region.

PMI disaggregates its net revenue from contracts with customers by both geographic location and product category for each of PMI's six operating segments, as PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.

Segment data were as follows:
(in millions)For the Nine Months Ended September 30,For the Three Months Ended September 30,
2020201920202019
Net revenues:
European Union$7,960 $7,381 $2,950 $2,645 
Eastern Europe2,470 2,300 899 899 
Middle East & Africa2,348 3,058 768 1,127 
South & Southeast Asia3,211 3,607 1,071 1,246 
East Asia & Australia4,045 4,094 1,358 1,252 
Latin America & Canada (1)
1,216 1,652 400 473 
Net revenues$21,250 $22,092 $7,446 $7,642 
Operating income (loss):
European Union$3,924 $3,346 $1,588 $1,255 
Eastern Europe610 284 245 (101)
Middle East & Africa819 1,304 261 519 
South & Southeast Asia1,290 1,471 402 539 
East Asia & Australia1,792 1,520 637 451 
Latin America & Canada (1)
328 100 110 125 
Operating income$8,763 $8,025 $3,243 $2,788 
(1) As of March 22, 2019, PMI deconsolidated the financial results of its Canadian subsidiary, Rothmans, Benson & Hedges Inc. ("RBH") from PMI's financial statements. For further details, see Note 19. Deconsolidation of RBH.

Items affecting the comparability of results from operations were as follows:

•Russia excise and VAT audit charge - See Note 8. Contingencies for details of the $374 million pre-tax charge included in the Eastern Europe segment for the nine months and three months ended September 30, 2019.
•Canadian tobacco litigation-related expense - See Note 8. Contingencies and Note 19. Deconsolidation of RBH for details of the $194 million pre-tax charge included in the Latin America & Canada segment for the nine months ended September 30, 2019.
•Loss on deconsolidation of RBH - See Note 19. Deconsolidation of RBH for details of the $239 million loss included in the Latin America & Canada segment for the nine months ended September 30, 2019.
•Asset impairment and exit costs - See Note 18. Asset Impairment and Exit Costs for a breakdown of these costs by segment for the nine months and three months ended September 30, 2020 and 2019.


PMI's net revenues by product category were as follows:
(in millions)For the Nine Months Ended September 30,For the Three Months Ended September 30,
2020201920202019
Net revenues:
Combustible products:
European Union$6,099 $6,139 $2,244 $2,178 
Eastern Europe1,681 1,774 636 664 
Middle East & Africa2,296 2,810 768 1,064 
South & Southeast Asia3,211 3,607 1,071 1,246 
East Asia & Australia1,876 2,074 605 680 
Latin America & Canada1,196 1,634 393 466 
Total combustible products$16,360 $18,039 $5,716 $6,298 
Reduced-risk products:
European Union$1,861 $1,242 $706 $467 
Eastern Europe789 526 263 235 
Middle East & Africa52 248 — 63 
South & Southeast Asia— — — — 
East Asia & Australia2,169 2,020 753 572 
Latin America & Canada20 18 7 7 
Total reduced-risk products$4,890 $4,053 $1,730 $1,344 
Total PMI net revenues$21,250 $22,092 $7,446 $7,642 
Note: Sum of product categories or Regions might not foot to total PMI due to roundings.

Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's cigarettes and other tobacco products combined. Other tobacco products primarily include roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos and do not include reduced-risk products.

Net revenues related to reduced-risk products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's heated tobacco units, IQOS devices and related accessories, and other nicotine-containing products, which primarily include PMI's e-vapor products.
PMI recognizes revenue, when control is transferred to the customer, typically either upon shipment or delivery of goods.