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Segment Reporting:
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting: Segment Reporting:
PMI’s subsidiaries and affiliates are primarily engaged in the manufacture and sale of cigarettes and smoke-free products, including heat-not-burn, e-vapor and oral nicotine products. Excluding the Wellness and Healthcare segment and the 2022 acquisition of Swedish Match, PMI's segments are generally organized by geographic region and managed by segment managers who are responsible for the operating and financial results of the regions inclusive of combustible tobacco and smoke-free product categories sold in the region. Effective in January 2023, PMI began managing its business in four geographical segments, down from six previously, in addition to its continuing Swedish Match and Wellness and Healthcare segments. The four geographical segments are as follows: Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region ("SSEA, CIS & MEA"); East Asia, Australia, and PMI Duty Free Region ("EA, AU & PMI DF"); and Americas Region. PMI records net revenues and operating income to its geographical segments based upon the geographic area in which the customer resides.

PMI’s chief operating decision maker evaluates geographical segment performance and allocates resources based on regional operating income, which includes results from all product categories sold in each region, excluding Swedish Match and Wellness and Healthcare products. Business operations in the Swedish Match segment and the Wellness and Healthcare segment are evaluated separately.

PMI disaggregates its net revenues from contracts with customers by product category for each of PMI's four geographical segments and for the Swedish Match segment. For the Wellness and Healthcare business, Vectura Fertin Pharma, net revenues from contracts with customers are included in the Wellness and Healthcare segment. PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.
Segment data were as follows:
(in millions)For the Six Months Ended June 30,For the Three Months Ended June 30,
2023202220232022
Net revenues:
Europe$6,312 $6,533 $3,402 $3,309 
SSEA, CIS & MEA
5,145 4,959 2,668 2,514 
EA, AU & PMI DF
3,200 3,051 1,680 1,464 
Americas921 893 476 469 
Swedish Match1,246 — 665 — 
Wellness and Healthcare162 142 76 76 
Net revenues$16,986 $15,578 $8,967 $7,832 
Operating income (loss):
Europe$2,738 $3,032 $1,563 $1,474 
SSEA, CIS & MEA
1,570 1,923 858 958 
EA, AU & PMI DF
1,167 1,213 544 528 
Americas136 251 70 130 
Swedish Match457 — 264 — 
Wellness and Healthcare(771)(65)(733)(34)
Operating income$5,297 $6,354 $2,566 $3,056 
PMI's net revenues by product category were as follows:
(in millions)For the Six Months Ended June 30,For the Three Months Ended June 30,
2023202220232022
Net revenues:
Combustible tobacco products:
Europe$3,924 $3,999 $2,108 $2,062 
SSEA, CIS & MEA
4,504 4,398 2,350 2,203 
EA, AU & PMI DF
1,412 1,523 724 754 
Americas889 846 459 444 
Swedish Match284 — 149 — 
Total combustible tobacco products11,013 10,766 5,790 5,463 
Smoke-free products:
Smoke-free products excluding Wellness and Healthcare:
Europe2,388 2,534 1,294 1,247 
SSEA, CIS & MEA
641 561 318 311 
EA, AU & PMI DF
1,788 1,528 956 710 
Americas32 47 17 25 
Swedish Match962 — 516 — 
Total smoke-free products excluding Wellness and Healthcare5,811 4,670 3,101 2,293 
Wellness and Healthcare162 142 76 76 
Total smoke-free products5,973 4,812 3,177 2,369 
Total PMI net revenues$16,986 $15,578 $8,967 $7,832 
Note: Sum of product categories or Regions might not foot to total PMI due to roundings.

Items affecting the comparability of results from operations were as follows:

•Impairment of goodwill and other intangibles – See Note 6. Goodwill and Other Intangible Assets, net for the details of the $680 million goodwill and non-amortizable intangible assets impairment charges included in the Wellness and Healthcare segment for the six months and three months ended June 30, 2023.
•South Korea indirect tax charge – See Note 10. Contingencies for details of the $204 million pre-tax charge included in the EA, AU & PMI DF segment results for the six months and three months ended June 30, 2023.
•Termination of distribution arrangement in the Middle East – In the first quarter of 2023, PMI recorded a pre-tax charge of $80 million following the termination of a distribution arrangement in the Middle East. This pre-tax charge was recorded as a reduction of net revenues in the condensed consolidated statements of earnings, and was included in the SSEA, CIS & MEA segment results for the six months ended June 30, 2023.
•Charges related to the war in Ukraine – See Note 3. War in Ukraine for details of the $122 million and $80 million pre-tax charges in the Europe segment for the six months and three months ended June 30, 2022, respectively.
•Swedish Match AB acquisition accounting related item – See Note 2. Acquisitions for details of the $18 million pre-tax purchase accounting adjustments related to the sale of acquired inventories stepped up to fair value included in the Swedish Match segment for the six months ended June 30, 2023.
•Asset impairment and exit costs – See Note 17. Asset Impairment and Exit Costs for details of the $109 million pre-tax charge for the six months ended June 30, 2023, as well as a breakdown of these costs by segment.
Following the Swedish Match acquisition and a review of PMI and Swedish Match’s combined product portfolio, PMI reclassified certain of its own products previously reported under its combustible tobacco product category to the newly created smoke-free product category to better reflect the characteristics of these products. This reclassification did not impact PMI’s consolidated financial position, results of operations or cash flows in any of the periods presented.

Net revenues related to combustible tobacco products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of PMI's cigarettes and other tobacco products that are combusted. Other tobacco products primarily include roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos, and do not include smoke-free products.

Net revenues related to smoke-free products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes, if applicable. These net revenue amounts consist of the sale of all of PMI's products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine, also including wellness and healthcare products, as well as consumer accessories such as lighters and matches.

Net revenues related to wellness and healthcare products primarily consist of operating revenues generated from the sale of products primarily associated with inhaled therapeutics, and oral and intra-oral delivery systems that are included in the operating results of PMI's Wellness and Healthcare business, Vectura Fertin Pharma.