XML 38 R24.htm IDEA: XBRL DOCUMENT v3.22.2.2
Investments in Equity Securities (Tables)
 9 Months Ended
Sep. 30, 2022
Investments [Abstract]  
Investment
The carrying amount of our investments consisted of the following:
(in millions)September 30, 2022December 31, 2021
ABI$9,048 $11,144 
JUUL
350 1,705 
Cronos (1)
416 632 
Total
$9,814 $13,481 
(1) Our investment in Cronos at September 30, 2022 and December 31, 2021 consisted of our equity method investment in Cronos of $415 million and $617 million, respectively, and also included the Cronos warrant and the Fixed-price Preemptive Rights, which are measured at fair value (collectively, “Investment in Cronos”). See below for further discussion.
Equity Method Investments
(Income) losses from investments in equity securities consisted of the following:
For the Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions)2022202120222021
ABI (1)
$2,155 $5,644 $2,367 $6,036 
Cronos (1)
197 145 11 (21)
(Income) losses from investments under equity method of accounting2,352 5,789 $2,378 $6,015 
JUUL (2)
1,355 — 100 (100)
(Income) losses from investments in equity securities$3,707 $5,789 $2,478 $5,915 
(1) Includes our share of amounts recorded by our investees and additional adjustments, if required, related to (i) the conversion from international financial reporting standards to United States generally accepted accounting principles (“GAAP”) and (ii) adjustments to our investment required under the equity method of accounting.
(2) Investment in JUUL is accounted for as an investment in an equity security measured at fair value. See below for further discussion of the change from equity method of accounting in the third quarter of 2022.
We recorded non-cash, pre-tax unrealized (gains) losses, representing the changes in the fair values of the Fixed-price Preemptive Rights and Cronos warrant, as follows:
For the Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions)2022202120222021
Fixed-price Preemptive Rights$1 $21 $— $17 
Cronos warrant13 107 — 118 
Total$14 $128 $— $135 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation The following table provides a reconciliation of the beginning and ending balance of our investment in JUUL, which is classified in Level 3 of the fair value hierarchy:
Investment
(in millions)Balance
Balance at December 31, 2020$1,705 
Unrealized gains (losses) included in (income) losses from investments in equity securities— 
Balance at December 31, 2021$1,705 
Unrealized gains (losses) included in (income) losses from investments in equity securities(1,355)
Balance at September 30, 2022
$350