Philip Morris' Billions

How the cigarette maker spends its revenue

$28 billionPhilip Morris' revenue (ttm)

$28.9

billion

$27.6

billion

$27.6

billion

 Trinidad and

Tobago

Philip Morris Uganda

If Philip Morris were a country...

The S&P 500 Companies, Ranked by Revenue

Philip

Morris:

89thPM:

$500

Billion

Not all of this falls to the bottom line.

63%

Where does Philip Morris' revenue go?

$28

Billion

Expenses ate up $17.4 billion.$17.4 billion

Where does Philip Morris' revenue go?

63%

11%

$28

Billion

Taxes accounted for another $3 billion.$3 billion

Where does Philip Morris' revenue go?

63%

11%

26%$28

Billion

Leaving net income of $7.2 billion

Where does Philip Morris' revenue go?

63%

11%

23%26%

$28

Billion

From this, it paid dividends totaling $6.3 billion

Where does Philip Morris' revenue go?

63%

11%

23%

3%

26%$28

Billion

And bought back common stock worth $0.9 billion

Where does Philip Morris' revenue go?

63%

11%

23%

3%

0%

26%$28

Billion

And retained the rest…

Interesting observations 3

$19.1B

$8.5B

$5.9B$5.1B $4.5B

AAPL GE XOM WMT MSFT MRK VZ DIS CMCSA UNH

The 10 Biggest Corporate Taxpayers in AmericaBased on income tax provisions, trailing twelve months

First, Philip Morris distributes a comparatively large share of its net income via dividends.

0%

20%

40%

60%

80%

100%

PM JNJ INTC AAPL CSCO WMT IBM

Dividends Buybacks Retained Earnings

How 7 Companies Allocate Their Earnings (ttm)

Second, Philip Morris enjoys wider profit margins than the typical large cap stock.

41%Philip Morris'

pretax

operating

margin (ttm)

17%

Median pretax operating

margin of the 100 biggest

S&P 500 companies (ttm)

-100%

-50%

0%

50%

100%

150%

200%

2008 2010 2012 2014

Philip Morris' stock

S&P 500

Which, third, helps explain…

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