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Balance Sheet Offsetting
 6 Months Ended
Jun. 30, 2017
Offsetting [Abstract]  
Balance Sheet Offsetting
Balance Sheet Offsetting:

Derivative Financial Instruments

PMI uses foreign exchange contracts and interest rate contracts to mitigate its exposure to changes in exchange and interest rates from third-party and intercompany actual and forecasted transactions. Substantially all of PMI's derivative financial instruments are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. While these contracts contain the enforceable right to offset through close-out netting rights, PMI elects to present them on a gross basis in the condensed consolidated balance sheets. Collateral associated with these arrangements is in the form of cash and is unrestricted. See Note 5. Financial Instruments for disclosures related to PMI's derivative financial instruments.

The effects of these derivative financial instrument assets and liabilities on PMI's condensed consolidated balance sheets were as follows:
 
(in millions)
Gross Amounts Recognized
Gross Amount Offset in the Condensed Consolidated Balance Sheet
Net Amounts Presented in the Condensed Consolidated Balance Sheet
Gross Amounts Not Offset in the
Condensed Consolidated
Balance Sheet
 
 
Financial Instruments
Cash Collateral Received/Pledged
Net Amount
 
 
 
 
 
 
 
 
 
 
At June 30, 2017
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Foreign exchange contracts
$
397

$
—

$
397

$
(233
)
$
(140
)
$
24

 
Liabilities
 
 
 
 
 
 
 
Foreign exchange contracts
$
636

$
—

$
636

$
(233
)
$
(257
)
$
146

 
At December 31, 2016
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Foreign exchange contracts
$
813

$
—

$
813

$
(126
)
$
(607
)
$
80

 
Liabilities
 
 
 
 
 
 
 
Foreign exchange contracts
$
163

$
—

$
163

$
(126
)
$
(31
)
$
6