Philip Morris International Inc. (NYSE:PM) Files An 8-K Regulation FD DisclosureItem 9.01. Regulation FD Disclosure.
As set forth in the Form 10-K for the fiscal year ended December 31, 2017 (the “2017 Form 10-K”), filed with the U.S. Securities and Exchange Commission on February 13, 2018 by Philip Morris International Inc. (the “Company”), effective January 1, 2018, the Company began managing its business in six reporting segments as follows:
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The European Union Region; |
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The Eastern Europe Region; |
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The Middle East & Africa Region; |
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The South & Southeast Asia Region; |
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The East Asia & Australia Region; and |
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The Latin America& Canada Region. |
On March 23, 2018, the Company posted on its website certain recast historical shipment volume and financial information that reflects the change in reportable segments described above and the additional changes summarized below. All changes are effective January 1, 2018. The recast shipment volume and financial information is available at https://www.pmi.com/investor-relations/overview in the Investor Kit.
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As discussed in the Company's 2017 Form 10-K, the Company has adopted Accounting Standard Update ASU 2014-09 "Revenue from Contracts with Customers" as of January 1, 2018 retrospectively. The Company made an accounting policy election to exclude excise taxes collected from customers from the measurement of the transaction price, thereby presenting revenues, net of excise taxes in all periods. The underlying principles of the new standard, relating to the measurement of revenue and the timing of recognition, are closely aligned with the Company's current business model and practices. |
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The Company adopted Accounting Standard Update ASU 2017-07 "Compensation – Retirement Benefits" as of January 1, 2018 retrospectively. Previously, total pension and other employee benefit costs were included in operating income. Beginning January 1, 2018, only the service cost component is required to be shown in operating income, while all other cost components will be presented in a new line item “pension and other employee benefit costs" below operating income. |
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Effective January 1, 2018, the Company began using operating income to evaluate business segment performance and allocate resources, replacing operating companies income used previously. |
The foregoing changes impact only the manner in which the results for the Company's performance were previously reported, and have no material impact on the Company's previously reported
consolidated financial position or results of operations. The unaudited recast historical information is being furnished solely to aid investors by providing supplemental information and does not represent a restatement of the Company's previously issued consolidated financial statements that were included in the Company's 2017 Form 10-K. The Company's 2017 and 2016 quarterly and annual recast shipment volume and financial information, previously presented in earnings releases for the same periods, as well as other financial information, is attached as Exhibit 99.1. The Company's 2016 and 2015 recast shipment volume and financial information, previously presented in earnings releases for the same periods, as well as other financial information, is attached as Exhibit 99.2.
The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, should be read in conjunction with the Company's 2017 Form 10-K.
Key terms, definitions and explanatory notes, as well as reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are set forth on Exhibits 99.1 and 99.2.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 9.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 9.01 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document to the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing or document.
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Item 9.01 |
Financial Statements and Exhibits. |
Philip Morris International Inc. ExhibitEX-99.1 2 ex991recastschedules_2017v.htm EXHIBIT 99.1 Exhibit Exhibit 99.1Recast Shipment Volume and Financial Information2017 vs. 2016PHILIP MORRIS INTERNATIONAL INC. and SubsidiariesKey Terms,…To view the full exhibit click here
About Philip Morris International Inc. (NYSE:PM)
Philip Morris International Inc. is a holding company engaged in the manufacture and sale of cigarettes, other tobacco products and other nicotine-containing products in markets outside of the United States. The Company’s products are sold in over 180 markets. Its segments include European Union; Eastern Europe, Middle East & Africa; Asia, and Latin America & Canada. The Company’s premium price brands include Marlboro, Merit, Parliament and Virginia Slims; mid-price brands include L&M and Philip Morris, and other international brands include Bond Street, Chesterfield, Lark, Muratti, Next and Red & White. Its local cigarette brands consist of Dji Sam Soe, Sampoerna and U Mild in Indonesia; Champion, Fortune and Hope in the Philippines; Apollo-Soyuzand Optima in Russia; Morven Gold in Pakistan; Boston in Colombia, Belmont, Canadian Classics and Number 7 in Canada; Best in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece, and Petra in the Czech Republic and Slovakia.
