Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Aggregate Fair Values of PMI's Investments in Equity Securities, Derivative Financial Instruments and PMI's Debt

The aggregate fair values of PMI's investments in equity securities, derivative financial instruments and PMI's debt as of September 30, 2020, were as follows:


(in millions)	Fair Value at September 30, 2020		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Equity securities ⁽¹⁾	$	244	$	244	$	—	$	—
Derivative contracts	254		—		254		—
Total assets	$	498	$	244	$	254	$	—
Liabilities:
Debt	$	32,934	$	32,763	$	171	$	—
Derivative contracts	565		—		565		—

Total liabilities	$	33,499	$	32,763	$	736	$	—

⁽¹⁾Unrealized pre-tax loss of $78 million ($62 million net of tax) on equity securities was recorded in the condensed consolidated statements of earnings for the nine months ended September 30, 2020. During the three months ended September 30, 2020, PMI did not record any unrealized gains or losses on equity securities in the condensed consolidated statements of earnings.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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