REG-Philip Morris International Inc. Philip Morris International Inc. (PMI) Reports 2016 Results; Provides 2017 Earnings Per Share Fo
02/02/2017 12:06
- Part 3: For the preceding part double click ID:nBw7kRJXqb
($ in millions, except per share data)
(Unaudited)
2016 2015 % Change
Net Revenues $ 19,189 $ 18,371 4.5%
Cost of sales 2,499 2,375 5.2%
Excise Taxes on products (1) 12,218 11,979 2.0%
Gross profit 4,472 4,017 11.3%
Marketing, administration and research costs 1,842 2,028
Asset impairment and exit costs — 68
Amortization of intangibles 18 20
Operating Income (2) 2,612 1,901 37.4%
Interest expense, net 201 227
Earnings before income taxes 2,411 1,674 44.0%
Provision for income taxes 658 412 59.7%
Equity (income)/loss in unconsolidated subsidiaries, net (22 ) (36 )
Net Earnings 1,775 1,298 36.7%
Net Earnings attributable to noncontrolling interests 64 49
Net Earnings attributable to PMI $ 1,711 $ 1,249 37.0%
Per share data (3):
Basic Earnings Per Share $ 1.10 $ 0.80 37.5%
Diluted Earnings Per Share $ 1.10 $ 0.80 37.5%
(1) The segment detail of Excise Taxes on products sold for the quarters ended
December 31, 2016 and 2015 is shown on Schedule 2.
(2) PMI's management evaluates segment performance and allocates resources
based on operating companies income, which PMI defines as operating income,
excluding general corporate expenses and amortization of intangibles, plus
equity (income)/loss in unconsolidated subsidiaries, net. The reconciliation
from operating income to operating companies income is as follows:
2016 2015 % Change
Operating Income $ 2,612 $ 1,901 37.4%
Excluding:
- Amortization of intangibles 18 20
- General corporate expenses (included in marketing, administrationand 42 47
research costs above)
Plus: Equity (income)/loss in unconsolidated subsidiaries, net (22 ) (36 )
Operating Companies Income $ 2,694 $ 2,004 34.4%
(3) Net Earnings and weighted-average shares used in the basic and diluted
earnings per share computations for the quarters ended December 31, 2016 and
2015 are shown on Schedule 4, Footnote 1.
Schedule 2
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended December 31,
($ in millions)
(Unaudited)
Net Revenues excluding Excise Taxes
EuropeanUnion EEMA Asia LatinAmerica &Canada Total
2016 Net Revenues (1) $ 6,465 $ 4,636 $ 5,517 $ 2,571 $ 19,189
Excise Taxes on products (4,521 ) (2,838 ) (3,073 ) (1,786 ) (12,218 )
Net Revenues excluding Excise Taxes 1,944 1,798 2,444 785 6,971
2015 Net Revenues $ 6,647 $ 4,420 $ 4,786 $ 2,518 $ 18,371
Excise Taxes on products (4,713 ) (2,703 ) (2,867 ) (1,696 ) (11,979 )
Net Revenues excluding Excise Taxes 1,934 1,717 1,919 822 6,392
Variance Currency (25 ) (85 ) 118 (98 ) (90 )
Acquisitions — — — — —
Operations 35 166 407 61 669
Variance Total 10 81 525 (37 ) 579
Variance Total (%) 0.5 % 4.7 % 27.4 % (4.5 )% 9.1 %
Variance excluding Currency 35 166 407 61 669
Variance excluding Currency (%) 1.8 % 9.7 % 21.2 % 7.4 % 10.5 %
Variance excluding Currency & Acquisitions 35 166 407 61 669
Variance excluding Currency & Acquisitions (%) 1.8 % 9.7 % 21.2 % 7.4 % 10.5 %
(1) 2016 Currency increased / (decreased) Net Revenues as follows:
European Union $ (103 )
EEMA (329 )
Asia 233
Latin America & Canada (580 )
$ (779 )
Schedule 3
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended December 31,
($ in millions)
(Unaudited)
Operating Companies Income
EuropeanUnion EEMA Asia LatinAmerica & Canada Total
2016 $ 898 $ 627 $ 908 $ 261 $ 2,694
2015 599 704 465 236 2,004
% Change 49.9 % (10.9 )% 95.3 % 10.6 % 34.4 %
Reconciliation:
For the quarter ended December 31, 2015 $ 599 $ 704 $ 465 $ 236 $ 2,004
2015 Asset impairment and exit costs 68 — — — 68
2016 Asset impairment and exit costs — — — — —
Acquired businesses — — — — —
Currency 29 (390 ) 63 (62 ) (360 )
Operations 202 313 380 87 982
For the quarter ended December 31, 2016 $ 898 $ 627 $ 908 $ 261 $ 2,694
Schedule 4
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Diluted Earnings Per Share
For the Quarters Ended December 31,
($ in millions, except per share data)
(Unaudited)
Diluted
E.P.S.
2016 Diluted Earnings Per Share $ 1.10 (1)
2015 Diluted Earnings Per Share $ 0.80 (1)
Change $ 0.30
% Change 37.5 %
Reconciliation:
2015 Diluted Earnings Per Share $ 0.80 (1)
Special Items:
2015 Asset impairment and exit costs 0.03
2015 Tax items (0.02 )
2016 Asset impairment and exit costs —
2016 Tax items —
Currency (0.13 )
Interest 0.01
Change in tax rate (0.02 )
Operations 0.43 (2)
2016 Diluted Earnings Per Share $ 1.10 (1)
(1) Basic and diluted EPS were calculated using the following (in millions):
Q42016 Q42015
Net Earnings attributable to PMI $ 1,711 $ 1,249
Less distributed and undistributed earnings attributable
to share-based payment awards 5 4
Net Earnings for basic and diluted EPS $ 1,706 $ 1,245
Weighted-average shares for basic and diluted EPS 1,551 1,549
(2) Includes the impact of shares outstanding and share-based payments
Schedule 5
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Statements of Earnings
For the Years Ended December 31,
($ in millions, except per share data)
(Unaudited)
2016 2015 % Change
Net Revenues $ 74,953 $ 73,908 1.4%
Cost of sales 9,391 9,365 0.3%
Excise Taxes on products (1) 48,268 47,114 2.4%
Gross profit 17,294 17,429 (0.8)%
Marketing, administration and research costs 6,405 6,656
Asset impairment and exit costs — 68
Amortization of intangibles 74 82
Operating Income (2) 10,815 10,623 1.8%
Interest expense, net 891 1,008
Earnings before income taxes 9,924 9,615 3.2%
Provision for income taxes 2,768 2,688 3.0%
Equity (income)/loss in unconsolidated subsidiaries, net (94 ) (105 )
Net Earnings 7,250 7,032 3.1%
Net Earnings attributable to noncontrolling interests 283 159
Net Earnings attributable to PMI $ 6,967 $ 6,873 1.4%
Per share data (3):
Basic Earnings Per Share $ 4.48 $ 4.42 1.4%
Diluted Earnings Per Share $ 4.48 $ 4.42 1.4%
(1) The segment detail of Excise Taxes on products sold for the years ended
December 31, 2016 and 2015 is shown on Schedule 6.
(2) PMI's management evaluates segment performance and allocates resources
based on operating companies income, which PMI defines as operating income,
excluding general corporate expenses and amortization of intangibles, plus
equity (income)/loss in unconsolidated subsidiaries, net. The reconciliation
from operating income to operating companies income is as follows:
2016 2015 % Change
Operating Income $ 10,815 $ 10,623 1.8%
Excluding:
- Amortization of intangibles 74 82
- General corporate expenses (included in marketing, administrationand 161 162
research costs above)
Plus: Equity (income)/loss in unconsolidated subsidiaries, net (94 ) (105 )
Operating Companies Income $ 11,144 $ 10,972 1.6%
(3) Net Earnings and weighted-average shares used in the basic and diluted
Earnings Per Share computations for the years ended December 31, 2016 and 2015
are shown on Schedule 8, Footnote 1.
Schedule 6
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Years Ended December 31,
($ in millions)
(Unaudited)
Net Revenues excluding Excise Taxes
EuropeanUnion EEMA Asia LatinAmerica &Canada Total
2016 Net Revenues (1) $ 27,129 $ 18,286 $ 20,531 $ 9,007 $ 74,953
Excise Taxes on products (18,967 ) (11,286 ) (11,850 ) (6,165 ) (48,268 )
Net Revenues excluding Excise Taxes 8,162 7,000 8,681 2,842 26,685
2015 Net Revenues $ 26,563 $ 18,328 $ 19,469 $ 9,548 $ 73,908
Excise Taxes on products (18,495 ) (10,964 ) (11,266 ) (6,389 ) (47,114 )
Net Revenues excluding Excise Taxes 8,068 7,364 8,203 3,159 26,794
Variance Currency (147 ) (600 ) (8 ) (525 ) (1,280 )
Acquisitions — — — — —
Operations 241 236 486 208 1,171
Variance Total 94 (364 ) 478 (317 ) (109 )
Variance Total (%) 1.2 % (4.9 )% 5.8 % (10.0 )% (0.4 )%
Variance excluding Currency 241 236 486 208 1,171
Variance excluding Currency (%) 3.0 % 3.2 % 5.9 % 6.6 % 4.4 %
Variance excluding Currency & Acquisitions 241 236 486 208 1,171
Variance excluding Currency & Acquisitions (%) 3.0 % 3.2 % 5.9 % 6.6 % 4.4 %
(1) 2016 Currency decreased Net Revenues as follows:
European Union $ (571 )
EEMA (1,963 )
Asia (266 )
Latin America & Canada (2,403 )
$ (5,203 )
Schedule 7
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Years Ended December 31,
($ in millions)
(Unaudited)
Operating Companies Income
EuropeanUnion EEMA Asia LatinAmerica &Canada Total
2016 $ 3,994 $ 3,016 $ 3,196 $ 938 $ 11,144
2015 3,576 3,425 2,886 1,085 10,972
% Change 11.7 % (11.9 )% 10.7 % (13.5 )% 1.6 %
Reconciliation:
For the year ended December 31, 2015 $ 3,576 $ 3,425 $ 2,886 $ 1,085 $ 10,972
2015 Asset impairment and exit costs 68 — — — 68
2016 Asset impairment and exit costs — — — — —
Acquired businesses — — — — —
Currency 34 (839 ) 52 (282 ) (1,035 )
Operations 316 430 258 135 1,139
For the year ended December 31, 2016 $ 3,994 $ 3,016 $ 3,196 $ 938 $ 11,144
Schedule 8
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Diluted Earnings Per Share
For the Years Ended December 31,
($ in millions, except per share data)
(Unaudited)
Diluted
E.P.S.
2016 Diluted Earnings Per Share $ 4.48 (1)
2015 Diluted Earnings Per Share $ 4.42 (1)
Change $ 0.06
% Change 1.4 %
Reconciliation:
2015 Diluted Earnings Per Share $ 4.42 (1)
Special Items:
2015 Asset impairment and exit costs 0.03
2015 Tax items (0.03 )
2016 Asset impairment and exit costs —
2016 Tax items —
Currency (0.46 )
Interest 0.05
Change in tax rate 0.03
Operations 0.44 (2)
2016 Diluted Earnings Per Share $ 4.48 (1)
(1) Basic and diluted EPS were calculated using the following (in millions):
YTDDecember2016 YTDDecember2015
Net Earnings attributable to PMI $ 6,967 $ 6,873
Less distributed and undistributed earnings attributable
to share-based payment awards 19 24
Net Earnings for basic and diluted EPS $ 6,948 $ 6,849
Weighted-average shares for basic and diluted EPS 1,551 1,549
(2) Includes the impact of shares outstanding and share-based payments
Schedule 9
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios)
(Unaudited)
December 31, December 31,
2016 2015
Assets
Cash and cash equivalents $ 4,239 $ 3,417
All other current assets 13,369 12,387
Property, plant and equipment, net 6,064 5,721
Goodwill 7,324 7,415
Other intangible assets, net 2,470 2,623
Investments in unconsolidated subsidiaries 1,011 890
Other long-term assets 2,374 1,503
Total assets $ 36,851 $ 33,956
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings $ 643 $ 825
Current portion of long-term debt 2,573 2,405
All other current liabilities 13,251
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