Summary
Philip Morris International Inc. (PM) filed an 8-K on March 23, 2018, primarily to disclose recast historical shipment volume and financial information. This recast reflects changes effective January 1, 2018, including a shift to six new reporting segments and the retrospective adoption of new accounting standards. Investors should note that these changes are primarily presentational and do not materially impact the company's previously reported consolidated financial position or results of operations. The updated information is intended to provide a clearer view of segment performance and aid in analyzing historical trends under the new reporting structure. The filing includes recast data for 2017 vs. 2016 and 2016 vs. 2015, available via Exhibits 99.1 and 99.2.
Key Highlights
- 1PM has reorganized its business into six new reporting segments effective January 1, 2018: European Union, Eastern Europe, Middle East & Africa, South & Southeast Asia, East Asia & Australia, and Latin America & Canada.
- 2The company has retrospectively adopted Accounting Standard Update ASU 2014-09 (Revenue from Contracts with Customers) as of January 1, 2018, choosing to exclude excise taxes from revenue presentation.
- 3PM adopted Accounting Standard Update ASU 2017-07 (Compensation - Retirement Benefits) effective January 1, 2018, altering the presentation of pension and other employee benefit costs.
- 4Operating income will now be used to evaluate business segment performance and allocate resources, replacing the previously used operating companies income.
- 5The recast historical information is for supplemental purposes and does not represent a restatement of previously issued financial statements.
- 6The changes do not materially impact the company's consolidated financial position or results of operations.
- 7Recast shipment volume and financial information for 2017 vs. 2016 and 2016 vs. 2015 are provided as exhibits (99.1 and 99.2).