smarty/docs/en/programmers/api-variables/variable-php-handling.xml

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     <sect1 id="variable.php.handling">
      <title>$php_handling</title>
      <para>
       This tells Smarty how to handle PHP code embedded in the
       templates. There are four possible settings, default being
       SMARTY_PHP_PASSTHRU. Note that this does NOT affect php code
       within <link linkend="language.function.php">{php}{/php}</link>
       tags in the template.
      </para>    
      <itemizedlist>
       <listitem><para>SMARTY_PHP_PASSTHRU - Smarty echos tags as-is.</para></listitem>
       <listitem><para>SMARTY_PHP_QUOTE - Smarty quotes the tags as
         html entities.</para></listitem>
       <listitem><para>SMARTY_PHP_REMOVE - Smarty removes the tags from
         the templates.</para></listitem>
       <listitem><para>SMARTY_PHP_ALLOW - Smarty will execute the tags
         as PHP code.</para></listitem>
      </itemizedlist>
      <note>
       <para>
        Embedding PHP code into templates is highly discouraged.
        Use <link linkend="language.custom.functions">custom functions</link> or
        <link linkend="language.modifiers">modifiers</link> instead.
       </para>
      </note>
</sect1>
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