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RULE NO. 424(b)(3)
REGISTRATION NO. 33-10218
PHILIP MORRIS DEFERRED PROFIT-SHARING PLAN
CHANGE IN CONTRIBUTION FORMULA
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Beginning with the calendar year 1994, each participating Operating Company will
make a contribution on behalf of its eligible employees to the Trust for the
Deferred Profit-Sharing Plans equal to 3 percent of its Operating Profit. Your
share of your Operating Company's contribution is stated as a percentage of your
annual compensation and cannot exceed 15 percent of annual eligible
compensation.
If you are employed by Philip Morris Companies Inc., Philip Morris Management
Corp., Philip Morris International, Inc., Philip Morris Capital Corp. or any
other participating company with less than 750 participants, the percentage of
compensation contributed on your behalf is the percentage of compensation
contributed on behalf of eligible employees of Philip Morris Incorporated
(U.S.A.) or Miller Brewing Company and participating subsidiaries, whichever is
greater.
Operating profit generally means earnings before cumulative effect of accounting
changes, discontinued operations and extraordinary items, interest and other
debt expense, income taxes, contributions to the Trust for the Deferred Profit-
Sharing Plans, contributions to incentive compensation plans, amortization of
goodwill, unallocated corporate expenses and any minority interest. The total
contributions to the Trust for the Deferred Profit-Sharing Plans may not be more
than three percent of the consolidated pre-tax earnings of Philip Morris
Companies Inc. before income taxes, contributions for incentive plans and
contributions to the Trust for the Deferred Profit-Sharing Plans.
The contributions are made, for salaried employees, to the Philip Morris
Deferred Profit-Sharing Plan, and, for eligible hourly craft and production
employees, to the Philip Morris Incorporated Deferred Profit-Sharing Plan and
the Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees.
This change will affect the calculation of the contribution for the 1994 Plan
year which will be deposited in the Trust Fund for the Deferred Profit-Sharing
Plans in February 1995.
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This document is a summary of material modifications to the summary plan
description to the Philip Morris Deferred Profit-Sharing Plan and a supplement
to a prospectus filed with the Securities and Exchange Commission. The date of
this summary of material modifications and supplement is February 18, 1994.
