Benefit Plans:

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Benefit Plans:

Benefit Plans:Pension coverage for employees of PMI’s subsidiaries is provided, to the extent deemed appropriate, through separate plans, many of which are governed by local statutory requirements. In addition, PMI provides health care and other benefits to certain U.S. retired employees and certain non-U.S. retired employees. In general, health care benefits for non-U.S. retired employees are covered through local government plans.

Pension and other employee benefit costs per the condensed consolidated statements of earnings consisted of the following:

	For the Nine Months Ended September 30,				For the Three Months Ended September 30,
(in millions)	2023		2022		2023		2022
Net pension costs (income)	$	(61)	$	(71)	$	(24)	$	(22)
Net postemployment costs	88		81		29		27
Net postretirement costs	9		6		3		2
Total pension and other employee benefit costs	$	36	$	16	$	8	$	7

Pension Plans

Components of Net Periodic Benefit Cost

Net periodic pension cost consisted of the following:

	Pension (1)
	For the Nine Months Ended September 30,				For the Three Months Ended September 30,
(in millions)	2023		2022		2023		2022
Service cost	$	130	$	176	$	45	$	57
Interest cost	193		58		64		20
Expected return on plan assets	(273)		(267)		(92)		(87)
Amortization:
Net loss	21		139		5		45
Prior service cost (credit)	(2)		(1)		(1)		—
Net periodic pension cost	$	69	$	105	$	21	$	35

(1) Primarily non-U.S. based defined benefit retirement plans.

Employer Contributions

PMI makes, and plans to make, contributions, to the extent that they are tax deductible and meet specific funding requirements of its funded pension plans.

Employer contributions of $96 million were made to the pension plans during the nine months ended September 30, 2023. Currently, PMI anticipates making additional contributions during the remainder of 2023 of approximately $39 million to its pension plans, based on current tax and benefit laws. However, this estimate is subject to change as a result of changes in tax and other benefit laws, as well as asset performance significantly above or below the assumed long-term rate of return on pension assets, or changes in interest and currency rates.

Employer contributions of $85 million were made to the pension plans during the nine months ended September 30, 2022. During the second quarter of 2022, PMI received a cash refund of $123 million from one of its pension plans due to a change in discount rate and value of assets that resulted in the overfunding of the plan.