UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
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(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
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For the fiscal year ended December 31, 2021 |
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period
from
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Commission file number 001-33708
Philip Morris International Deferred Profit-Sharing
Plan
(Full title of the plan)
PHILIP MORRIS INTERNATIONAL INC.
120 Park Avenue
New York, New York 10017
(Name of issuer of the securities held pursuant to the
plan
and address of its principal executive office.)
PHILIP MORRIS INTERNATIONAL DEFERRED PROFIT-SHARING
PLAN
ANNUAL REPORT ON FORM 11-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
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Page (s) |
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Report of Independent Registered Public Accounting Firm |
3-4 |
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Financial Statements: |
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Statements of Net Assets Available for Benefits at
December 31, 2021 and 2020
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5 |
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Statement of Changes in Net Assets Available for Benefits for
the Year Ended December 31,
2021 |
6 |
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Notes to Financial Statements |
7-14 |
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Supplemental Schedule*: |
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Schedule H - Line 4i - Schedule of Assets (Held at End of
Year) |
15 |
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Signatures |
16 |
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Exhibit: |
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* Other schedules required by 29 CFR
2520.103-10 of the Department of Labor Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, as amended, are omitted because they are not
applicable.
Report of Independent Registered Public Accounting
Firm
To the Administrator and Plan Participants of Philip Morris
International Deferred Profit-Sharing Plan
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available
for benefits of Philip Morris International Deferred Profit-Sharing
Plan (the “Plan”) as of December 31, 2021 and 2020 and the related
statement of changes in net assets available for benefits for the
year ended December 31, 2021, including the related notes
(collectively referred to as the “financial statements”). In our
opinion, the financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of
December 31, 2021 and 2020, and the changes in net assets available
for benefits for the year ended December 31, 2021 in conformity
with accounting principles generally accepted in the United States
of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s
management. Our responsibility is to express an opinion on the
Plan’s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be
independent with respect to the Plan in accordance with the U.S.
federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance
with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement,
whether due to error or fraud.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as
well as evaluating the overall presentation of the financial
statements.We believe that our audits provide a reasonable basis
for our opinion.
Supplemental Information
The supplemental Schedule H - Line 4i - Schedule of Assets (Held at
End of Year) as of December 31, 2021 has been subjected to audit
procedures performed in conjunction with the audit of the Plan’s
financial statements. The supplemental schedule is the
responsibility of the Plan’s management. Our audit procedures
included determining whether the supplemental schedule reconciles
to the financial statements or the underlying accounting and other
records, as applicable, and performing procedures to test the
completeness and accuracy of the information presented in the
supplemental schedule. In forming our opinion on the supplemental
schedule, we evaluated whether the supplemental schedule, including
its
form and content, is presented in conformity with the Department of
Labor’s Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974. In our opinion, the supplemental schedule is fairly stated,
in all material respects, in relation to the financial statements
as a whole.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 13, 2022
We have served as the Plan’s auditor since
2008.
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PHILIP MORRIS INTERNATIONAL DEFERRED PROFIT-SHARING
PLAN |
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS |
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at December 31, 2021 and 2020
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(in thousands of dollars) |
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2021 |
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2020 |
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Investments: |
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Total investments at fair value (Note
7) |
$ |
313,201 |
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$ |
289,618 |
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Receivables: |
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Employer's contribution |
2,959 |
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2,344 |
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Participants' contributions |
139 |
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142 |
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Participants' loans |
731 |
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772 |
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Dividends |
827 |
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864 |
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Total
receivables |
4,656 |
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4,122 |
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Net assets available for benefits |
$ |
317,857 |
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$ |
293,740 |
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The accompanying notes are an integral part of these financial
statements.
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PHILIP MORRIS INTERNATIONAL DEFERRED PROFIT-SHARING
PLAN |
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STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS |
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for the Year Ended December 31, 2021 |
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(in thousands of dollars) |
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2021 |
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Additions to net assets attributed to: |
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Investment income: |
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Net appreciation in fair value of
investments |
$ |
31,565 |
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Dividends and interest |
13,430 |
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Total
investment income |
44,995 |
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Interest income on notes receivable from participants |
37 |
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Contributions to the Plan: |
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By employer |
3,633 |
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By participants |
2,704 |
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Total
contributions |
6,337 |
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Net
additions |
51,369 |
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Deductions from net assets attributed to: |
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Distributions and
withdrawals |
27,252 |
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Total
deductions |
27,252 |
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Net
increase |
24,117 |
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Net assets available for benefits: |
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Beginning of year |
293,740 |
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End of year |
$ |
317,857 |
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The accompanying notes are an integral part of these financial
statements.
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of the Plan:
General:
The Philip Morris International Deferred Profit-Sharing Plan (the
“Plan”) is a defined contribution plan maintained for the benefit
of eligible salaried U.S. employees of Philip Morris International
Inc. (the "Company") and certain of its current subsidiaries
including PMI Global Services Inc., Philip Morris Global Brands
Inc., Triaga Inc. and OtiTopic Inc. The Plan is designed to provide
eligible employees with an opportunity to share in the profits of
the Company and to invest certain of their funds in a
tax-advantaged manner. Participants should refer to the official
Plan document that legally governs the operation of the Plan for a
complete description of the Plan's provisions. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”).
The administration of the Plan has been delegated to the
Administrator, as defined in the Plan. The PMI U.S. Benefits
Committee (the “Benefits Committee”) is responsible for the
operation and management of the investment of the assets of the
Plan, other than the following investment options: the “PMI Stock
Investment Option”; the “Altria Stock Investment Option”; the
“Mondelēz International Stock Investment Option”; and the “Kraft
Heinz Stock Fund Investment Option”, (hereinafter collectively
referred to as “Stock Investment Options”) which are invested
exclusively in the common stock of Philip Morris International Inc.
(“PMI Stock”), Altria Group, Inc. (“Altria Stock”), Mondelēz
International, Inc. (“Mondelēz Stock”) and The Kraft Heinz Company
(“Kraft Heinz Stock”), respectively (hereinafter collectively
referred to as “Common Stock”). Newport Trust Company is the named
fiduciary with respect to the management of the Stock Investment
Options. The Administrator, the Benefits Committee and Newport
Trust Company are hereinafter collectively referred to as the
“Fiduciaries”.
Contributions:
Each eligible employee of the Company may make before-tax, Roth
after-tax and traditional after-tax contributions to the Plan as
soon as administratively feasible after a participant’s date of
hire. All eligible grandfathered employees (hired by, rehired by or
transferred to the Company by January 1, 2009), other than
Match-Eligible Employees, are eligible for the Company's
contribution (the “Company Contribution”). Match-Eligible Employees
(defined as employees who are hired or rehired by, or transferred
to, the Company on or after January 1, 2009) become eligible for a
Company Contribution after completing 12 months of service. In
addition, Match-Eligible Employees, who make before-tax, Roth
after-tax and/or traditional after-tax contributions become
eligible for a company match contribution (the “Company Match
Contribution”) after 90 days of service. Participants can direct
all contributions among twenty investment options. The business
rating (further discussed in Note 3), which is determined by the
Philip Morris International Inc. Board of Directors Compensation
and Leadership Development Committee (the "Compensation and
Leadership Development Committee"), resulted in a 2021 Company
Contribution to eligible Plan participants of 15% of eligible
compensation.
Employee Stock Ownership Plan:
The employee stock ownership plan (“ESOP”) portion of the Plan
permits each participant who invests in the PMI Stock Investment
Option to elect, no later than the business day
immediately
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
preceding an ex-dividend date with respect to a dividend payable on
shares of PMI Stock, to have the dividend paid to them in cash or
have the dividend reinvested in additional shares of PMI
Stock.
Any cash dividends paid on Altria Stock, Mondelēz Stock or Kraft
Heinz Stock cannot be reinvested in their respective Stock
Investment Options, but instead will be invested according to the
participant's current investment elections. If the participant has
not provided an investment election, cash dividends will be
invested in the Vanguard Target Date Retirement funds. The
participant does not have the right to elect to have these
dividends paid to them in cash.
Participant Accounts:
Each participant's Plan account is credited with the Company
Contribution, Company Match Contribution (for Match-Eligible
Employees), participant's personal contributions and the allocated
share of the investment activities of each investment option in
which he or she participates, and is charged with an allocation of
Plan expenses, as defined by the Plan document.
Vesting:
Each participant is fully vested in the balance held in their Plan
accounts. Eligible participants are vested immediately in the
Company Contribution and Company Match Contribution.
Distributions and Withdrawals:
Distributions are made only when a person ceases to be a
participant. Upon termination, including retirement, a participant
has various options available, as described in the Plan, with
respect to the distribution of his or her Plan account
balances.
Participants may make in-service withdrawals in accordance with the
provisions outlined in the Plan document.
Participant Loans:
The loan program permits active participants to borrow from their
Plan accounts in accordance with the provisions outlined in the
Plan document. Interest on participant loans, which is determined
at the time of the loan issuance, is equal to the prime rate as
published in
The Wall Street Journal
generally as of the last day of the quarter preceding the loan and
is fixed for the term of the loan. The minimum loan amount is
$1,000 and the maximum loan amount is the lesser of one-half of a
participant's account balance at the time of the loan request or
$50,000, less the participant's highest outstanding loan balance
during the 12-month period preceding the loan request. Loan
repayment periods range from two to twenty-five years depending on
the type of loan.
A participant's loan account equals the original principal amount
less principal repayments. The principal amounts of loan repayments
reduce the loan account and are added back to the participant's
Plan accounts originally used as the source of the loan. The repaid
amount (including interest) is reinvested in the investment options
according to the participant's investment authorization in effect
at the time of repayment.
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
2. Summary of Significant Accounting
Policies:
Basis of Presentation:
The financial statements are prepared using the accrual basis of
accounting.
Use of Estimates:
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires the applicable fiduciary to make estimates and
assumptions that affect the reported amounts in the financial
statements and related disclosures. Actual results could differ
from those estimates.
Risks and Uncertainties:
The Plan provides for various investment options in investment
securities. Investment securities, in general, are exposed to
various risks, such as interest rate, credit and overall market
volatility. Due to the level of risk associated with certain
investment securities, it is reasonably possible that changes in
the values of investment securities will occur in the near term and
that such changes could materially affect participant account
balances and the amounts reported in the Statement of Net Assets
Available for Benefits.
Certain assets of the Plan are invested in common stock and mutual
funds, which could be subject to significant market fluctuations. A
small portion of the assets are held in money market
accounts.
In March 2020, the World Health Organization classified the
COVID-19 outbreak as a pandemic. As a result, global financial
markets have experienced, and may continue to experience,
significant volatility resulting from the spread of COVID-19. The
values of the Plan's individual investments have and will fluctuate
in response to changing market conditions and therefore, the amount
of losses that will be recognized in subsequent periods, if any,
cannot be determined. The extent of the impact of COVID-19 on the
Plan's net assets available for benefits and contributions will
depend on future developments, including the duration and continued
spread of the outbreak. The full impact of the COVID-19 outbreak
continues to evolve as of the date of this report.
In February 2022, the Russian Federation launched a military action
against Ukraine. Since the onset of the war in Ukraine, the
company’s main priority has been the safety and security of its
more than 1,300 employees and their families in the country. The
values of the Plan’s individual investments may be adversely
impacted by the continuation and consequences of the war in
Ukraine.
Valuation of Investments:
The Plan's investments are composed of the following:
•A
commingled fund consisting of investment contracts (primarily
synthetic guaranteed investment contracts). The Plan's investment
in the BNYM Insight Stable Value Fund is fully benefit-responsive
and therefore, contract value is the relevant measurement attribute
for the portion of the net assets available for benefits
attributable to this investment. Contract value represents
contributions made under the contract, plus earnings, less
participant withdrawals and administrative expenses. Participants
may ordinarily direct the withdrawal or transfer of all or
a
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
portion of their investment at contract value. The BNYM Insight
Stable Value Fund, a collective trust, is valued based on
information reported by the investment advisor using the audited
financial statements of the collective trust which are as of and
for the year ended December 31, 2021.
•Mutual
funds are stated at the respective funds' net asset value per
share, which is determined based on market values at the closing
price on the last business day of the year.
•Equity
securities, primarily consisting of common stock, that are listed
on an exchange are valued at the closing price on the last business
day of the year.
•Short-term
temporary investments, such as money markets, are generally carried
at amortized cost, which approximates fair value.
Investment Transactions and Investment Income:
An investment transaction is accounted for on the date the purchase
or sale is executed. Dividend income is recorded on the ex-dividend
date; interest income is recorded as earned on an accrual
basis.
Realized gains or losses from security transactions are reported on
the average cost method.
Distributions and Withdrawals:
Distributions and withdrawals are recorded when paid.
Expenses:
Investment management fees, brokerage commissions (excluding those
for Common Stock held in the Stock Investment Options) and other
expenses charged by the manager of the investment option are
charged against the net asset value of the specific investment
option and reduce investment return.
Administrative fees such as participant recordkeeping fees are
charged directly to the participant accounts, usually on a
quarterly basis.
Transaction fees (including fees associated with the trading of
Common Stock) are charged solely to the accounts of the
participants that initiate the transactions.
3. Contributions:
The Company Contribution to the Plan, on behalf of employees of the
Company who have met their eligibility service requirement (“Philip
Morris Participants”) is based on the business rating of PMI as
determined by the Compensation and Leadership Development Committee
each year. Based on the annual business rating, the Company
Contribution to eligible Plan participants will range from 7% to
15% of eligible compensation. The Company Contribution is allocated
ratably among Philip Morris Participants in the Plan at the end of
the year according to their eligible participant compensation as
defined by the Plan.
Match-Eligible Employees are not eligible to participate in the
Philip Morris International Retirement Plan (a non-contributory
defined benefit pension plan). However, in addition to the Company
Contribution, Match-Eligible Employees who make before-tax, Roth
after-tax and/or traditional
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
after-tax contributions for any payroll period after 90 days from
their date of hire will also receive a Company Match Contribution.
The Company will match the participant's before-tax contributions,
Roth after-tax and traditional after-tax contributions, dollar for
dollar, up to the first 5% of eligible compensation that the
participant contributes for each payroll period.
The Company Contribution for the year is accrued by the Plan based
upon the amount to be funded each year as determined by the
Compensation and Leadership Development Committee, as described
above. Company Match Contributions are recorded in the period in
which the participants contribute. Participants' contributions are
recorded in the period in which they are withheld by the
Company.
Due to limitations under the Internal Revenue Code of 1986, as
amended (the “Code”), certain amounts for highly compensated
employees are not contributed to the Plan.
No contribution is required from any participant under the Plan.
However, new employees are automatically enrolled in the Plan to
make before-tax contributions of five percent (5%) of their
eligible compensation beginning with the first payroll period that
is administratively practicable after the employee has completed 90
days of service. Employees that are automatically enrolled can
elect not to make contributions or to contribute a different
percentage of their eligible compensation.
Participants may make contributions on a before-tax, Roth after-tax
and/or traditional after-tax basis to the Plan. Participants who
are age 50 or older by the end of a Plan year are eligible to make
before-tax catch-up contributions up to the limit prescribed in the
Code. For 2021, the catch-up contribution was limited to $6,500. If
a participant has not made the maximum after-tax contribution, he
or she may make an additional after-tax contribution in a lump sum,
subject to certain statutory limits. The percentage of compensation
available for these contributions may vary from year to year. The
aggregate contributions actually made by participants may not cause
the Plan to violate limitations on such contributions set forth in
the Code. The Code also imposes a dollar limitation on the amount
of before-tax and Roth after-tax contributions for a calendar year.
For 2021, a participant's before-tax and Roth after-tax
contribution was limited to a combined maximum of $19,500, with a
Plan limitation of 15% of compensation on the total amount of
before-tax, Roth after-tax and traditional after-tax contributions.
Before-tax catch-up contributions are not subject to these
limits.
The Plan provides, in the event of a Change of Control (as defined
in the Plan) of Philip Morris International Inc., for the Company
Contribution for the year in which the Change of Control occurs and
for two years thereafter to be at least equal to the lesser of (a)
the percentage of participants' compensation that was contributed
to the Plan for the year prior to the year in which the Change of
Control occurs, or (b) 10 percent of the participants' aggregate
annual compensation.
4. Transactions with
Parties-in-Interest:
The applicable Fiduciaries are not aware of any transaction between
the Plan and a party-in-interest (as defined by ERISA) or
disqualified person (as defined in the Code) to the Plan (1) which
is prohibited under the fiduciary responsibility provisions of
ERISA or the prohibited transaction provisions of the Code, or (2)
which has not been exempted from such prohibitions pursuant to a
statutory or regulatory exemption or a class exemption issued by
the Department of Labor. The Plan invests in PMI Stock. During the
year ended December 31, 2021, there were $17.4 million of purchases
and $21.1 million of sales of PMI Stock. For the year ended
December 31, 2021, the Plan earned $5.3 million, primarily related
to net realized gains and dividends, from the investment in
PMI
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
Stock. These transactions are exempt from the party-in-interest
transaction prohibitions of ERISA.
Certain Plan investments are shares of mutual funds managed by
Fidelity Concord Street Trust, an affiliate of Fidelity Management
Trust Company, the trustee as defined by the Plan. These
transactions also qualify as exempt party-in-interest transactions
under ERISA.
5. Plan Termination:
The Board of Directors of Philip Morris International Inc. (the
“Board”) has the right, subject to the applicable provisions of
ERISA and the Code, to amend (retroactively or otherwise) the Plan,
suspend making the Company Contribution and/or Company Match
Contributions to the Plan or to terminate the Plan. The Board has
delegated to the Benefits Committee and the Administrator the right
to amend the Plan, provided that the first year cost of such
amendment does not exceed specified dollar limits. The Company has
the right to terminate its participation in the Plan. However, no
such action may deprive any participant or beneficiary under the
Plan of any vested right.
6. Tax Status:
By letter dated May 13, 2015, the Internal Revenue Service ("IRS")
has determined that the Plan constitutes a qualified plan under
Section 401(a) of the Code and the ESOP portion of the Plan is a
stock bonus plan as described in Section 401(a) and 4975(e) of the
Code. The Plan has since been amended, and the Administrator and
counsel believe that the Plan has been and is currently being
operated in compliance with the applicable requirements of the
Code. Therefore both the Plan and the ESOP portion of the Plan are
exempt from federal income taxes under the provisions of Section
501(a) of the Code and no provision for income taxes has been
included in the Plan's financial statements.
The Plan's management has reviewed the Plan's tax exempt status and
analyzed the tax positions taken by the Plan and has concluded that
as of December 31, 2021 and 2020, there are no uncertain tax
positions taken or expected to be taken that would require
recognition or disclosure in the financial statements during the
year ended December 31, 2021 and 2020, respectively.
The Plan is subject to routine audits by the taxing jurisdictions,
however, there are currently no audits for any tax periods in
progress.
7. Fair Value Measurements:
The authoritative guidance defines fair value as the exchange price
that would be received for an asset or paid to transfer a liability
(an exit price) in the principal or most advantageous market for
the asset or liability in an orderly transaction between market
participants on the measurement date. The guidance also establishes
a fair value hierarchy, which requires an entity to maximize the
use of observable inputs and minimize the use of unobservable
inputs when measuring fair value.
The guidance describes three levels of input that may be used to
measure fair value, which are as follows:
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
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Level 1 -
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Quoted prices in active markets for identical assets or
liabilities; |
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Level 2 -
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Observable inputs other than Level 1 prices, such as quoted prices
for similar assets or liabilities; quoted prices in markets that
are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full
term of the assets or liabilities; and |
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Level 3 -
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Unobservable inputs that are supported by little or no market
activity and that are significant to the fair value of the assets
or liabilities. |
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Plan Assets
Equity Securities:
Equity securities directly held by the Plan consist of common
stocks with quoted prices in active markets. These securities have
been classified within Level 1.
Mutual Funds and Money Markets:
Shares of mutual funds are valued at the net asset value of shares
held by the Plan at year end. The net asset value of the mutual
funds are based on prices in active markets. Investments held in
the money market funds are valued at amortized cost, which
approximates fair value. These investments have been classified
within Level 1.
The aggregate fair values of the Plan's assets as of December 31,
2021 and 2020, were as follows (in thousands):
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For the Year
Ended
Dec. 31, 2020
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For the Year
Ended
Dec. 31, 2021
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Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
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Significant
Other
Observable
Inputs
(Level 2)
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Significant
Unobservable
Inputs
(Level 3)
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Mutual Funds
(1)
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$ |
176,154 |
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$ |
196,938 |
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$ |
196,938 |
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$ |
— |
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$ |
— |
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Equity Securities |
75,087 |
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78,558 |
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78,558 |
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— |
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— |
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Money Market Funds |
717 |
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520 |
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520 |
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— |
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— |
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Total Assets in Fair Value Hierarchy |
251,958 |
|
|
276,016 |
|
|
$ |
276,016 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Assets Measured at Net Asset Value
(2)
|
37,660 |
|
|
37,185 |
|
|
|
|
|
|
|
|
Total Assets |
$ |
289,618 |
|
|
$ |
313,201 |
|
|
|
|
|
|
|
(1)Mutual
Funds were comprised of U.S. and international investments, 90.5%
and 9.5% respectively, at December 31, 2021, and 90% and 10%
respectively, at December 31, 2020.
(2)In
accordance with FASB ASC Subtopic 820-10, an investment measured at
fair value using the net asset value per share practical expedient
has not been classified in the fair value hierarchy. This
investment is the BNYM Insight Stable Value Fund, which is
comprised of a diversified portfolio of fixed-income instruments
which primarily include guaranteed investment contracts ("GICs")
including synthetic, and insurance company separate account GICs.
Participant redemptions can be made from the BNYM Insight Stable
Value Fund on a daily basis with settlement one business day after
the trade is submitted. Plan sponsor initiated withdrawals from the
BNYM Insight Stable Value Fund may be subject to a redemption
notice period of up to twelve months. The contract value amounts
presented in this table are intended to permit reconciliation of
the fair value hierarchy to the amounts presented in the statements
of net assets available for benefits.
Hierarchy valuations at December 31, 2021 are consistent with
December 31, 2020.
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in
these securities.
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
8. Reconciliation of Financial Statements to Form
5500:
The following is a reconciliation of net
additions per the financial statements to the Form 5500 for
the
year ended December 31, 2021 (in thousands
of dollars):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
Net additions per the financial
statements
|
|
$ |
51,369 |
|
|
|
Administrative expenses
|
|
46 |
|
|
|
Total
income per Form 5500
|
|
$ |
51,415 |
|
|
9. Subsequent Events:
The Benefits Committee plan to implement the required changes
resulting from the Setting Every Community Up for Retirement
Enhancement Act of 2019, (the "SECURE Act") and amend the Plan
document accordingly during 2022.
PMI has evaluated subsequent events and determined that no
additional disclosures are required.
PHILIP MORRIS INTERNATIONAL DEFERRED PROFIT-SHARING
PLAN
Schedule H - Line 4i - Schedule of Assets (Held at End of
Year)
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Identity of issuer, borrower,
lessor, or similar party
|
Description of investment including maturity date, rate of
interest, collateral, par, or
maturity value
|
Cost
(1)
|
Fair
Value
|
|
|
|
|
|
BNYM Insight Stable Value Fund |
Commingled Fund |
|
$ |
37,184,873 |
|
|
Vanguard Institutional Index Fund |
Mutual Fund |
|
87,741,902 |
|
|
Fidelity Extended Market Index Fund* |
Mutual Fund |
|
33,712,263 |
|
|
Vanguard LifeStrategy Moderate Growth Fund |
Mutual Fund |
|
25,457,978 |
|
|
Vanguard Intermediate-Term Treasury Fund |
Mutual Fund |
|
18,801,748 |
|
|
Fidelity International Index Fund* |
Mutual Fund |
|
13,091,460 |
|
|
Vanguard European Stock Index Fund |
Mutual Fund |
|
5,602,162 |
|
|
Vanguard Institutional Target Retirement 2030 Fund Investor
Shares |
Mutual Fund |
|
4,939,172 |
|
|
Vanguard Institutional Target Retirement 2025 Fund Investor
Shares |
Mutual Fund |
|
2,182,711 |
|
|
Vanguard Institutional Target Retirement 2040 Fund Investor
Shares |
Mutual Fund |
|
1,423,974 |
|
|
Vanguard Institutional Target Retirement 2035 Fund Investor
Shares |
Mutual Fund |
|
1,293,248 |
|
|
Vanguard Institutional Target Retirement Income Fund Investor
Shares |
Mutual Fund |
|
1,148,464 |
|
|
Vanguard Institutional Target Retirement 2050 Fund Investor
Shares |
Mutual Fund |
|
450,888 |
|
|
Vanguard Institutional Target Retirement 2020 Fund Investor
Shares |
Mutual Fund |
|
371,728 |
|
|
Vanguard Institutional Target Retirement 2055 Fund Investor
Shares |
Mutual Fund |
|
248,069 |
|
|
Vanguard Institutional Target Retirement 2045 Fund Investor
Shares |
Mutual Fund |
|
211,344 |
|
|
Vanguard Institutional Target Retirement 2060 Fund Investor
Shares |
Mutual Fund |
|
174,367 |
|
|
Vanguard Institutional Target Retirement 2015 Fund Investor
Shares |
Mutual Fund |
|
59,450 |
|
|
Vanguard Institutional Target Retirement 2065 Fund Investor
Shares |
Mutual Fund |
|
27,295 |
|
|
Philip Morris International Inc. Stock* |
Common Stock |
|
62,840,343 |
|
|
Altria Group, Inc. Stock |
Common Stock |
|
9,499,275 |
|
|
Mondelēz International, Inc. Stock |
Common Stock |
|
5,344,522 |
|
|
The Kraft Heinz Company Stock |
Common Stock |
|
873,711 |
|
|
Fidelity Government Money Market Fund* |
Money Market |
|
510,151 |
|
|
Fidelity Cash Reserves Fund* |
Money Market |
|
9,989 |
|
|
Total |
|
|
$ |
313,201,087 |
|
|
Participants' loans* |
12/17/2022- 6/12/2045 interest 3.25%-7.75% |
|
$ |
730,670 |
|
*indicates party-in-interest
(1)
All investments are participant directed, therefore cost is not
applicable.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Director, People and Culture U.S., having administrative
responsibility for the Plan, has duly caused this annual report to
be signed on its behalf by the undersigned thereunto duly
authorized.
PHILIP MORRIS INTERNATIONAL
DEFERRED PROFIT-SHARING
PLAN
|
|
|
|
|
|
|
By |
/s/ CHRIS SEVERSON |
|
|
Chris Severson |
|
Director, People and Culture U.S. |
Date: June 13, 2022
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