Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases:

The components of PMI’s lease cost were as follows for the nine months and three months ended September 30, 2020 and 2019:

	For the Nine Months Ended September 30,				For the Three Months Ended September 30,
(in millions)	2020		2019		2020		2019
Operating lease cost	$	177	$	180	$	60	$	61
Short-term lease cost	37		45		12		15
Variable lease cost	23		20		8		10
Total lease cost	$	237	$	245	$	80	$	86

For the nine months ended September 30, 2020 and 2019, lease cost of $55 million and $59 million were recorded in cost of sales, respectively, and $182 million and $186 million were recorded in marketing, administration and research costs, respectively. For the three months ended September 30, 2020 and 2019, lease costs of $19 million and $21 million were recorded in cost of sales, respectively, and $61 million and $65 million were recorded in marketing, administration and research costs, respectively.