Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements, Recurring and Nonrecurring

The aggregate fair values of PMI’s derivative financial instruments, pension plan assets, debt and contingent consideration as of December 31, 2014 and 2013, were as follows:



(in millions)	Fair Value At December 31, 2014		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign exchange contracts	$	406	$	—	$	406	$	—
Pension plan assets	6,722		4,853		1,869		—
Total assets	$	7,128	$	4,853	$	2,275	$	—
Liabilities:
Debt	$	30,582	$	30,405	$	177	$	—
Foreign exchange contracts	151		—		151		—
Contingent consideration	22		—		—		22
Total liabilities	$	30,755	$	30,405	$	328	$	22





(in millions)	Fair Value At December 31, 2013		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign exchange contracts	$	153	$	—	$	153	$	—
Pension plan assets	6,871		5,164		1,707		—
Total assets	$	7,024	$	5,164	$	1,860	$	—
Liabilities:
Debt	$	26,141	$	25,961	$	180	$	—
Foreign exchange contracts	116		—		116		—
Total liabilities	$	26,257	$	25,961	$	296	$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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