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Stock Plans
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement, Additional Disclosure [Abstract]  
Stock Plans
Stock Plans:

In May 2017, PMI’s shareholders approved the Philip Morris International Inc. 2017 Performance Incentive Plan (the “2017 Plan”). Under the 2017 Plan, PMI may grant to eligible employees restricted shares and restricted share units, performance-based cash incentive awards and performance-based equity awards. Up to 25 million shares of PMI’s common stock may be issued under the 2017 Plan. At December 31, 2021, shares available for grant under the 2017 Plan were 14,832,141.

In May 2017, PMI’s shareholders also approved the Philip Morris International Inc. 2017 Stock Compensation Plan for Non-Employee Directors (the “2017 Non-Employee Directors Plan”). A non-employee director is defined as a member of the PMI Board of Directors who is not a full-time employee of PMI or of any corporation in which PMI owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation. Up to 1 million shares of PMI common stock may be awarded under the 2017 Non-Employee Directors Plan. At December 31, 2021, shares available for grant under the plan were 914,413.

Restricted share unit (RSU) awards

PMI may grant RSU awards to eligible employees; recipients may not sell, assign, pledge or otherwise encumber such awards. Such awards are subject to forfeiture if certain employment conditions are not met. RSU awards generally vest on the third anniversary of the grant date. RSU awards do not carry voting rights, although they do earn dividend equivalents.
During 2021, the activity for RSU awards was as follows:
Number of
Shares		Weighted-
Average Grant
Date Fair Value
Per Share
Balance at January 1, 20214,098,240 $86.21 
Granted2,020,860 82.17 
Vested(1,256,441)96.01 
Forfeited(221,895)82.97 
Balance at December 31, 20214,640,764 $81.96 

During the years ended December 31, 2021, 2020 and 2019, the grant date fair value of the RSU awards granted to PMI employees and the recorded compensation expense related to RSU awards were as follows:
(in millions, except per RSU award granted)Total Grant Date Fair Value of RSU Awards GrantedWeighted-Average Grant Date Fair Value Per RSU Award GrantedCompensation Expense related to RSU Awards
2021$166 $82.17 $139 
2020$148 $85.79 $129 
2019$133 $77.28 $118 

The fair value of the RSU awards at the date of grant is amortized to expense over the restriction period, typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2021, PMI had $144 million of total unrecognized compensation costs related to non-vested RSU awards. These costs are expected to be recognized over a weighted-average period of approximately seventeen months, or upon death, disability or reaching the age of 58.

During the years ended December 31, 2021, 2020 and 2019, share and fair value information for PMI RSU awards that vested were as follows:
(dollars in millions)Shares of RSU Awards that VestedGrant Date Fair Value of Vested Shares of RSU AwardsTotal Fair Value of RSU Awards that Vested
20211,256,441 $121 $111 
20201,206,871 $117 $102 
20191,126,057 $101 $95 
Performance share unit (PSU) awards

PMI may grant PSU awards to certain executives; recipients may not sell, assign, pledge or otherwise encumber such awards. The PSU awards require the achievement of certain performance factors, which are predetermined at the time of grant, typically over a three-year performance cycle. The performance metrics for such PSU's granted during 2021 and 2020 consisted of PMI's Total Shareholder Return ("TSR") relative to a predetermined peer group and on an absolute basis (40% weight), PMI’s currency-neutral compound annual adjusted diluted earnings per share growth rate (30% weight), and PMI’s performance against specific measures of PMI’s transformation, defined as net revenues from PMI's RRPs and any other non-combustible products as a percentage of PMI's total net revenues in the last year of the performance cycle (30% weight). The performance metrics for such PSUs granted during 2019 consisted of PMI’s TSR relative to a predetermined peer group and on an absolute basis (50% weight), PMI’s currency-neutral compound annual adjusted operating income growth rate, excluding acquisitions (30% weight), and PMI’s performance against specific measures of PMI’s transformation (20% weight).

The aggregate of the weighted performance factors for the three metrics in each such PSU award determines the percentage of PSUs that will vest at the end of the three-year performance cycle. The minimum percentage of such PSUs that can vest is zero, with a target percentage of 100 and a maximum percentage of 200. Each such vested PSU entitles the participant to one share of common stock. An aggregate weighted PSU performance factor of 100 will result in the targeted number of PSUs being vested. At the end of the performance cycle, participants are entitled to an amount equivalent to the accumulated dividends paid on common stock during the performance cycle for the number of shares earned. PSU awards do not carry voting rights.

During 2021, the activity for PSU awards was as follows:
Number of
Shares		Grant Date 
Fair Value Subject to Other Performance Factors 		Grant Date 
Fair Value Subject to TSR Performance Factor
(Per Share)(Per Share)
Balance at January 1, 20211,472,800 $86.76 $90.48 
Granted574,410 81.86 106.93 
Vested(189,839)100.69 118.98 
Forfeited(320,351)97.76 72.55 
Balance at December 31, 20211,537,020 $82.14 $96.25 

During the years ended December 31, 2021, 2020 and 2019, the grant date fair value of the PSU awards granted to PMI employees and the recorded compensation expense related to PSU awards were as follows:
(in millions, except per PSU award granted)PSU Grant Date Fair Value Subject to Other Performance FactorsPSU Grant Date Fair Value Subject to TSR Performance FactorCompensation Expense related to PSU Awards
Total Per PSU AwardTotalPer PSU AwardTotal
2021$28 $81.86 $25 $106.93 $71 
2020$28 $86.04 $28 $80.36 $38 
2019$30 $77.23 $21 $83.59 $54 

The grant date fair value of the PSU awards subject to the other performance factors was determined by using the average of the high and low market price of PMI’s stock at the date of the grant. The grant date fair value of the PSU market-based awards subject to the TSR performance factor was determined by using the Monte Carlo simulation model. The following assumptions were used to determine the grant date fair value of the PSU awards subject to the TSR performance factor for the years ended December 31, 2021, 2020 and 2019:
For the Years Ended December 31,
202120202019
Risk-free interest rate (a)
0.2 %1.4 %2.4 %
Expected volatility (b)
31.7 %23.5 %21.4 %
(a) Based on the U.S. Treasury yield curve.
(b) Determined using the observed historical volatility.

The fair value of the PSU award at the date of grant is amortized to expense over the performance period, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2021, PMI had $48 million of total unrecognized compensation cost related to non-vested PSU awards. This cost is recognized over a weighted-average performance cycle period of approximately seventeen months, or upon death, disability or reaching the age of 58.

During the years ended December 31, 2021, 2020 and 2019, share and fair value information for PMI PSU awards that vested were as follows:
(dollars in millions)Shares of PSU Awards that VestedGrant Date Fair Value of Vested Shares of PSU AwardsTotal Fair Value of PSU Awards that Vested
2021189,839 $21 $16 
2020343,806 $35 $30 
2019330,616 $32 $28