Leases:

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases:

Leases:

PMI has operating and finance leases that are principally for real estate (office space, warehouses and retail store space), machinery and equipment, and vehicles. Lease terms range from 1 year to 68 years, some of which include options to renew, which are reasonably certain to be renewed. Lease terms may also include options to terminate the lease. The exercise of a lease renewal or termination option is at PMI’s discretion.

PMI’s operating and finance leases at December 31, 2025 and 2024, were as follows:

	At December 31,
(in millions)	2025				2024
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Assets:
Machinery and equipment	$	—	$	165	$	—	$	126
Other assets	679		—		585		—
Total lease assets	$	679	$	165	$	585	$	126
Liabilities:
Current
Current portion of long-term debt	$	—	$	35	$	—	$	37
Accrued liabilities - Other	207		—		177		—
Noncurrent
Long-term debt	—		49		—		30
Other liabilities	526		—		427		—
Total lease liabilities	$	733	$	84	$	604	$	67

The components of PMI’s lease cost were as follows for the years ended December 31, 2025, 2024 and 2023:

	For the Years Ended December 31,
(in millions)	2025		2024		2023
Operating lease cost	$	313	$	283	$	266
Finance lease cost:
Amortization of right-of-use assets	58		72		49
Interest on lease liabilities	2		2		1
Short-term lease cost	63		63		59
Variable lease cost	32		28		28
Total lease cost	$	468	$	448	$	403

Maturity of PMI’s lease liabilities, on an undiscounted basis, as of December 31, 2025, were as follows:

(in millions)	Operating Leases		Finance Leases
2026	$	244	$	38
2027	177		21
2028	125		16
2029	80		11
2030	53		3
Thereafter	204		—
Total lease payments	883		89
Less: Interest	150		5
Present value of lease liabilities	$	733	$	84

Other information related to PMI’s leases was as follows for the years ended December 31, 2025, 2024 and 2023:

	December 31,
(in millions)	2025						2024						2023
	Operating Leases			Finance Leases			Operating Leases			Finance Leases			Operating Leases			Finance Leases
Cash paid for amounts included in the measurement of lease liabilities in operating cash flows (1)	$	309		$	—		$	281		$	—		$	265		$	—
Cash paid for amounts included in the measurement of lease liabilities in financing cash flows	$	—		$	41		$	—		$	29		$	—		$	27
Leased assets obtained in exchange for new lease liabilities	$	277		$	91		$	214		$	73		$	205		$	55
Weighted-average remaining lease term (years)	10.0			3.0			10.4			2.6			10.2			2.6
Weighted-average discount rate(2) (3)	6.0		%	4.2		%	5.9		%	4.4		%	5.1		%	4.9		%

(1) Cash paid included in the operating cash flows for finance leases is not material.

(2) PMI’s weighted-average discount rate for operating leases is based on its estimated pre-tax cost of debt adjusted for country-specific risk.

(3) PMI’s weighted-average discount rate for finance leases, excluding embedded leases, is based on its estimated pre-tax cost of debt adjusted for country-specific risk and where applicable the interest rate explicit in lease contracts.