Philip Morris International Inc.PM
Philip Morris International Inc. Debt Disclosure
Indebtedness:
Short-Term Borrowings
At December 31, 2025 and 2024, PMI’s short-term borrowings and related average interest rates consisted of the following:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Amount Outstanding | Average Year-End Rate | Amount Outstanding | Average Year-End Rate | |||||||||||||||||||
Commercial paper | $ | — | — | % | $ | — | — | % | |||||||||||||||
Bank loans | 168 | 10.3 | 137 | 8.6 | |||||||||||||||||||
| $ | 168 | $ | 137 | ||||||||||||||||||||
PMI continues to have access to liquidity in the commercial paper market through programs in place in the U.S. and in Europe having an aggregate issuance capacity of $8.0 billion.
Given the mix of PMI's legal entities and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country.
The fair values of PMI’s short-term borrowings at December 31, 2025 and 2024, based on current market interest rates, approximate carrying value.
Long-Term Debt
At December 31, 2025 and 2024, PMI’s long-term debt consisted of the following:
| December 31, | |||||||||||
(in millions) | 2025 | 2024 | |||||||||
U.S. dollar notes, 0.875% to 6.375% (average interest rate 4.623%), due through 2044 | $ | 37,430 | $ | 35,297 | |||||||
| Foreign currency obligations: | |||||||||||
Euro notes, 0.125% to 3.750% (average interest rate 2.162%), due through 2039 | 7,942 | 7,082 | |||||||||
Euro credit facility borrowing related to Swedish Match AB acquisition, (interest rate 2.553%), due 2027 | 2,944 | 2,610 | |||||||||
Swedish krona notes, 1.395% to 2.710% (average interest rate 2.016%), due through 2029 | 267 | 218 | |||||||||
Other (average interest rate 4.050%), due through 2032 (a) | 84 | 351 | |||||||||
| Carrying value of long-term debt | 48,667 | 45,558 | |||||||||
Less current portion of long-term debt | 3,533 | 3,392 | |||||||||
| $ | 45,134 | $ | 42,166 | ||||||||
(a) At December 31, 2025, represents $84 million in finance leases; at December 31, 2024 represents long-term bank loans at subsidiaries, as well as $67 million in finance leases.
The fair value of PMI’s outstanding long-term debt, which is utilized solely for disclosure purposes, is determined using quotes and market interest rates currently available to PMI for issuances of debt with similar terms and remaining maturities. At December 31, 2025 and 2024 the fair value of PMI's outstanding long-term debt, excluding the aforementioned finance leases, was as follows:
December 31, | |||||||||||||||||||||||
(in millions) | 2025 | 2024 | |||||||||||||||||||||
| Level 1 | $ | 45,288 | $ | 41,431 | |||||||||||||||||||
| Level 2 | 3,085 | 3,011 | |||||||||||||||||||||
For a description of the fair value hierarchy and the three levels of inputs used to measure fair values, see Note 2. Summary of Significant Accounting Policies.
Term Loan Facility related to the Financing of the Swedish Match Acquisition
On June 23, 2022, PMI entered into a €5.5 billion (approximately $5.8 billion at the date of signing) senior unsecured term loan credit agreement consisting of a €3.0 billion (approximately $3.2 billion at the date of signing) tranche expiring three years after the occurrence of certain events and a €2.5 billion (approximately $2.6 billion at the date of signing) tranche expiring on June 23, 2027.
On November 7, 2022, PMI delivered notices of borrowing for advances totaling €5.5 billion under the term loan facility, of which €3.0 billion would become due on November 9, 2025, and €2.5 billion would become due on June 23, 2027, unless prepaid pursuant to the terms of the credit agreement.
On November 21, 2024, PMI prepaid approximately €3 billion (approximately $3.2 billion), including outstanding principal and accrued interest, representing all borrowings outstanding under the 3-year tranche of the senior unsecured term loan facility. As of December 31, 2025, borrowings in the amount of €2.5 billion (approximately $2.9 billion) under the 5-year tranche of the term loan facility remained outstanding.
Notes Outstanding:
PMI’s notes outstanding at December 31, 2025, were as follows:
(in millions) | ||||||||||||||||||||||||||
Type | Face Value | Interest Rate | Issuance | Maturity | ||||||||||||||||||||||
U.S. dollar notes | $750 | 2.750% | February 2016 | February 2026 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 0.875% | November 2020 | May 2026 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.750% | February 2024 | February 2027 | ||||||||||||||||||||||
U.S. dollar notes | $500 | 3.125% | August 2017 | August 2027 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.375% | November 2024 | November 2027 | ||||||||||||||||||||||
U.S. dollar notes | $1,500 | 5.125% | November 2022 | November 2027 | ||||||||||||||||||||||
U.S. dollar notes | $1,000 | 4.875% | February 2023 | February 2028 | ||||||||||||||||||||||
U.S. dollar notes | (a) | $550 | 4.875% | May 2023 | February 2028 | |||||||||||||||||||||
U.S. dollar notes | $500 | 3.125% | November 2017 | March 2028 | ||||||||||||||||||||||
U.S. dollar notes | $400 | Floating | April 2025 | April 2028 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.125% | April 2025 | April 2028 | ||||||||||||||||||||||
U.S. dollar notes | (b) | $50 | 4.000% | May 2013 | May 2028 | |||||||||||||||||||||
U.S. dollar notes | $650 | 5.250% | September 2023 | September 2028 | ||||||||||||||||||||||
U.S. dollar notes | $300 | Floating | October 2025 | October 2028 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 3.875% | October 2025 | October 2028 | ||||||||||||||||||||||
U.S. dollar notes | $1,000 | 4.875% | February 2024 | February 2029 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 3.375% | May 2019 | August 2029 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.625% | November 2024 | November 2029 | ||||||||||||||||||||||
U.S. dollar notes | $1,250 | 5.625% | November 2022 | November 2029 | ||||||||||||||||||||||
U.S. dollar notes | $1,500 | 5.125% | February 2023 | February 2030 | ||||||||||||||||||||||
U.S. dollar notes | (c) | $700 | 5.125% | May 2023 | February 2030 | |||||||||||||||||||||
U.S. dollar notes | $750 | 4.375% | April 2025 | April 2030 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 2.100% | May 2020 | May 2030 | ||||||||||||||||||||||
U.S. dollar notes | $700 | 5.500% | September 2023 | September 2030 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.000% | October 2025 | October 2030 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 1.750% | November 2020 | November 2030 | ||||||||||||||||||||||
U.S. dollar notes | $1,250 | 5.125% | February 2024 | February 2031 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.750% | November 2024 | November 2031 | ||||||||||||||||||||||
U.S. dollar notes | $850 | 4.250% | October 2025 | October 2032 | ||||||||||||||||||||||
U.S. dollar notes | $1,500 | 5.750% | November 2022 | November 2032 | ||||||||||||||||||||||
U.S. dollar notes | $1,500 | 5.375% | February 2023 | February 2033 | ||||||||||||||||||||||
U.S. dollar notes | (d) | $750 | 5.375% | May 2023 | February 2033 | |||||||||||||||||||||
U.S. dollar notes | $1,000 | 5.625% | September 2023 | September 2033 | ||||||||||||||||||||||
U.S. dollar notes | $1,750 | 5.250% | February 2024 | February 2034 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.900% | November 2024 | November 2034 | ||||||||||||||||||||||
U.S. dollar notes | $600 | 4.875% | April 2025 | April 2035 | ||||||||||||||||||||||
U.S. dollar notes | $850 | 4.625% | October 2025 | October 2035 | ||||||||||||||||||||||
U.S. dollar notes | $1,500 | 6.375% | May 2008 | May 2038 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.375% | November 2011 | November 2041 | ||||||||||||||||||||||
U.S. dollar notes | $700 | 4.500% | March 2012 | March 2042 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 3.875% | August 2012 | August 2042 | ||||||||||||||||||||||
U.S. dollar notes | $850 | 4.125% | March 2013 | March 2043 | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.875% | November 2013 | November 2043 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Type | Face Value | Interest Rate | Issuance | Maturity | ||||||||||||||||||||||
U.S. dollar notes | $750 | 4.250% | November 2014 | November 2044 | ||||||||||||||||||||||
U.S. dollar notes | (e) | $500 | 4.250% | May 2016 | November 2044 | |||||||||||||||||||||
EURO notes | (f) | €1,000 (approximately $1,372) | 2.875% | March 2014 | March 2026 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $557) | 0.125% | August 2019 | August 2026 | |||||||||||||||||||||
EURO notes | (b) | €300 (approximately $308) | 0.875% | February 2020 | February 2027 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $697) | 2.875% | May 2014 | May 2029 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $569) | 2.750% | June 2025 | June 2029 | |||||||||||||||||||||
| EURO notes | (f) | €500 (approximately $543) | 3.750% | June 2024 | January 2031 | |||||||||||||||||||||
EURO notes | (f) | €750 (approximately $835) | 0.800% | August 2019 | August 2031 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $569) | 3.250% | June 2025 | June 2032 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $648) | 3.125% | June 2013 | June 2033 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $578) | 2.000% | May 2016 | May 2036 | |||||||||||||||||||||
EURO notes | (f) | €500 (approximately $582) | 1.875% | November 2017 | November 2037 | |||||||||||||||||||||
EURO notes | (f) | €750 (approximately $835) | 1.450% | August 2019 | August 2039 | |||||||||||||||||||||
| Swedish krona notes | (b) | SEK1,000 (approximately $95) | 2.710% | January 2019 | January 2026 | |||||||||||||||||||||
| Swedish krona notes | (b) | SEK700 (approximately $67) | 1.395% | February 2021 | February 2026 | |||||||||||||||||||||
| Swedish krona notes | (b) | SEK100 (approximately $10) | 1.395% | March 2021 | February 2026 | |||||||||||||||||||||
| Swedish krona notes | (b) | SEK200 (approximately $19) | 1.395% | September 2021 | February 2026 | |||||||||||||||||||||
| Swedish krona notes | (b) | SEK200 (approximately $19) | 1.395% | January 2022 | February 2026 | |||||||||||||||||||||
| Swedish krona notes | (b) | SEK300 (approximately $29) | 2.190% | April 2021 | April 2029 | |||||||||||||||||||||
(a) These notes are a further issuance of the 4.875% notes issued in February 2023.
(b) Notes issued by Swedish Match AB. USD equivalents for foreign currency notes were calculated based on exchange rates on the date of acquisition.
(c) These notes are a further issuance of the 5.125% notes issued in February 2023.
(d) These notes are a further issuance of the 5.375% notes issued in February 2023.
(e) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014.
(f) USD equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance.
The net proceeds from the sale of the securities listed in the table above have been or will be used for general corporate purposes, including working capital requirements, repayment of commercial paper, and to refinance certain of our outstanding notes due in 2026.
Debt Extinguishment
On December 4, 2025, PMI redeemed all of its outstanding 4.875% U.S. dollar notes due February 13, 2026. As of this date (prior to the redemption), $1.7 billion aggregate principal amount of the U.S. dollar notes were outstanding. The pre-tax loss related to this debt extinguishment, which was not material, was included in Interest expense, net on PMI’s consolidated statements of earnings in 2025.
Aggregate maturities:
Aggregate maturities of long-term debt are as follows:
(in millions) | |||||
| 2026 | $ | 3,540 | |||
| 2027 | 6,816 | ||||
| 2028 | 4,968 | ||||
| 2029 | 4,968 | ||||
| 2030 | 5,903 | ||||
| 2031-2035 | 14,199 | ||||
| 2036-2040 | 3,561 | ||||
| Thereafter | 5,050 | ||||
| 49,005 | |||||
| Debt discounts and fair value adjustments | (338) | ||||
| Total long-term debt | $ | 48,667 | |||
Revolving Credit Facilities
At December 31, 2025, PMI’s total committed revolving credit facilities were as follows:
| Type (in billions) | Committed Revolving Credit Facilities | ||||
Multi-year $2.0 billion revolving credit, expiring February 10, 2026 (1) | $ | 2.0 | |||
Multi-year $2.5 billion revolving credit, expiring September 29, 2026 (2) (3) | 2.5 | ||||
Multi-year €1.5 billion revolving credit, expiring January 29, 2028 | 1.8 | ||||
Total facilities | $ | 6.3 | |||
(1) On January 28, 2022, PMI entered into an agreement, effective February 10, 2022, to amend and extend the term of its $2.0 billion multiyear
revolving credit facility, for an additional year covering the period February 11, 2026 to February 10, 2027, in the amount of $1.9 billion.
(2) Includes pricing adjustments that may result in the reduction or increase in both the interest rate and commitment fee under the credit agreement if PMI achieves, or fails to achieve, certain specified targets.
(3) On September 20, 2022, PMI entered into an agreement, effective September 29, 2022, to amend and extend the term of its $2.5 billion multi-year revolving credit facility, for an additional year covering the period September 30, 2026 to September 29, 2027, in the amount of $2.3 billion. On September 20, 2023, PMI entered into an agreement, effective September 29, 2023, to amend and further extend the term to September 29, 2028.
At December 31, 2025, there were no borrowings under these committed revolving credit facilities, and the entire committed amounts were available for borrowing.
On December 11, 2025, PMI entered into a credit agreement, effective as of January 29, 2026, relating to a senior unsecured revolving credit facility with borrowings up to an aggregate principal amount of $2.0 billion expiring on January 29, 2031. This credit agreement replaces PMI’s existing multi-year revolving credit facility, which was to expire on February 10, 2027. PMI provided notice of termination of the existing multi-year $2.0 billion revolving credit facility on December 11, 2025, with termination effective as of January 29, 2026.
On December 11, 2025, PMI also entered into an agreement, effective as of January 29, 2026, to amend and extend the term of its existing multi-year €1.5 billion revolving credit facility from January 29, 2028 to January 29, 2029.
In addition to the committed revolving credit facilities discussed above, PMI maintains certain short-term credit arrangements, including uncommitted credit lines, to primarily meet working capital needs. These credit arrangements amounted to approximately $3.9 billion at December 31, 2025, and approximately $2.1 billion at December 31, 2024. Borrowings under these arrangements and other bank loans amounted to $168 million at December 31, 2025, and $137 million at December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 6, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 7, 2020 | |
| 2018 | Feb 7, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 14, 2017 | |
| 2015 | Feb 17, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.