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RULE NO. 424(b)(3)
REGISTRATION NOS. 33-1321
33-4011
PHILIP MORRIS INCORPORATED
DEFERRED PROFIT-SHARING PLAN
FOR CRAFT EMPLOYEES
CHANGE IN CONTRIBUTION FORMULA
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Beginning with the calendar year 1994, Philip Morris Incorporated (Philip
Morris) will make a contribution to the Deferred Profit-Sharing Plans on behalf
of eligible employees equal to three percent of the operating profit of Philip
Morris, but may not be more than 15 percent of annual eligible compensation.
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 Incorporated Deferred Profit-Sharing Plan for
Craft Employees 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.
