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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                    
Commission File Number 1-08940
Altria Group, Inc.
(Exact name of registrant as specified in its charter)
Virginia 13-3260245
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer
Identification No.)
6601 West Broad Street,Richmond,Virginia23230
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (804) 274-2200 
 Former name, former address and former fiscal year, if changed since last report
Securities registered pursuant to Section 12(b) of the Act:
               Title of each class               
Trading SymbolsName of each exchange on which registered
Common Stock, $0.33 1/3 par value
MONew York Stock Exchange
1.000% Notes due 2023
MO23ANew York Stock Exchange
1.700% Notes due 2025
MO25New York Stock Exchange
2.200% Notes due 2027
MO27New York Stock Exchange
3.125% Notes due 2031
MO31New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   þ     No   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes   þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer þAccelerated filer☐
Non-accelerated filer ☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐  No   þ
At October 18, 2022, there were 1,792,172,618 shares outstanding of the registrant’s common stock, par value $0.33 1/3 per share.

Table of Contents    


ALTRIA GROUP, INC.
TABLE OF CONTENTS
 
  Page No.
PART I -FINANCIAL INFORMATION
Item 1.Financial Statements (Unaudited)
Item 2.
Item 3.
Item 4.
PART II -OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.
Signature

2
Table of Contents    
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of dollars)
(Unaudited)
______________________________
 
September 30, 2022December 31, 2021
Assets
Cash and cash equivalents$2,483 $4,544 
Receivables52 47 
Inventories:
Leaf tobacco609 744 
Other raw materials189 166 
Work in process27 23 
Finished product281 261 
1,106 1,194 
Other current assets379 298 
Total current assets4,020 6,083 
Property, plant and equipment, at cost4,409 4,432 
Less accumulated depreciation2,822 2,879 
1,587 1,553 
Goodwill5,177 5,177 
Other intangible assets, net12,353 12,306 
Investments in equity securities ($351 million and $1,720 million at September 30, 2022 and December 31, 2021, respectively, measured at fair value)
9,814 13,481 
Other assets1,002 923 
Total Assets$33,953 $39,523 
 
See notes to condensed consolidated financial statements.
3
Table of Contents    
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share and per share data)
(Unaudited)
________________________________________________
 
September 30, 2022December 31, 2021
Liabilities
Current portion of long-term debt$1,443 $1,105 
Accounts payable417 449 
Accrued liabilities:
Marketing691 664 
Settlement charges2,731 3,349 
Other1,122 1,365 
Dividends payable1,693 1,647 
Total current liabilities8,097 8,579 
Long-term debt24,848 26,939 
Deferred income taxes3,330 3,692 
Accrued pension costs196 200 
Accrued postretirement health care costs1,436 1,436 
Other liabilities278 283 
Total liabilities38,185 41,129 
Contingencies (Note 11)
Stockholders’ Equity (Deficit)
Common stock, par value $0.33 1/3 per share
(2,805,961,317 shares issued)
935 935 
Additional paid-in capital5,873 5,857 
Earnings reinvested in the business28,785 30,664 
Accumulated other comprehensive losses(2,383)(3,056)
Cost of repurchased stock
(1,012,146,048 shares at September 30, 2022 and
982,785,699 shares at December 31, 2021)
(37,442)(36,006)
Total stockholders’ equity (deficit)(4,232)(1,606)
Total Liabilities and Stockholders’ Equity (Deficit)$33,953 $39,523 

See notes to condensed consolidated financial statements.

4
Table of Contents    
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Losses)
(in millions of dollars, except per share data)
(Unaudited)
_____________________________________ 
For the Nine Months Ended September 30,For the Three Months Ended September 30,
2022202120222021
Net revenues$18,985 $19,758 $6,550 $6,786 
Cost of sales4,869 5,348 1,715 1,858 
Excise taxes on products3,380 3,733 1,138 1,255 
Gross profit10,736 10,677 3,697 3,673 
Marketing, administration and research costs1,635 1,850 585 722 
Operating income9,101 8,827 3,112 2,951 
Interest and other debt expense, net832 869 271 266 
Loss on early extinguishment of debt— 649 — — 
Net periodic benefit income, excluding service cost(137)(152)(44)(63)
(Income) losses from investments in equity securities3,707 5,789 2,478 5,915 
(Gain) loss on Cronos-related financial instruments14 128 — 135
Earnings (losses) before income taxes4,685 1,544 407 (3,302)
Provision (benefit) for income taxes1,611 693 183 (582)
Net earnings (losses)3,074 851 224 (2,720)
Net (earnings) losses attributable to noncontrolling interests— — — (2)
Net earnings (losses) attributable to Altria$3,074 $851 $224 $(2,722)
Per share data:
Basic and diluted earnings (losses) per share attributable to Altria$1.69 $0.46 $0.12 $(1.48)

See notes to condensed consolidated financial statements.

5
Table of Contents    
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings (Losses)
(in millions of dollars)
(Unaudited)
_____________________
For the Nine Months Ended September 30,For the Three Months Ended September 30,
2022202120222021
Net earnings (losses)$3,074 $851 $224 $(2,720)
Other comprehensive earnings (losses), net of deferred income taxes:
Benefit plans48 383 17 6 
ABI637 495 (6)161 
Currency translation adjustments and other(12)33 (17)5 
Other comprehensive earnings (losses), net of deferred
income taxes
673 911 (6)172 
Comprehensive earnings (losses)3,747 1,762 218 (2,548)
Comprehensive (earnings) losses attributable to noncontrolling interests— — — (2)
Comprehensive earnings (losses) attributable to Altria$3,747 $1,762 $218 $(2,550)

See notes to condensed consolidated financial statements.
6
Table of Contents    
Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
for the Nine Months Ended September 30, 2022 and 2021
(in millions of dollars, except per share data)
(Unaudited)
_______________________________________
 
 Common
Stock		Additional
Paid-in
Capital		Earnings
Reinvested
in the
Business		Accumulated
Other
Comprehensive
Losses		Cost of
Repurchased
Stock		Total
Stockholders’
Equity (Deficit)
Balances, December 31, 2021$935 $5,857 $30,664 $(3,056)$(36,006)$(1,606)
Net earnings (losses)— — 3,074 — — 3,074 
Other comprehensive earnings (losses), net of deferred income taxes— — — 673 — 673 
Stock award activity— 16 — — 15 31 
Cash dividends declared ($2.74 per share)
— — (4,953)— — (4,953)
Repurchases of common stock— — — — (1,451)(1,451)
Balances, September 30, 2022
$935 $5,873 $28,785 $(2,383)$(37,442)$(4,232)


 Attributable to Altria  
 Common
Stock		Additional
Paid-in
Capital		Earnings
Reinvested
in the
Business		Accumulated
Other
Comprehensive
Losses		Cost of
Repurchased
Stock		Non-
controlling
Interests		Total
Stockholders’
Equity (Deficit)
Balances, December 31, 2020$935 $5,910 $34,679 $(4,341)$(34,344)$86 $2,925 
Net earnings (losses)— — 851 — — (4)847 
Other comprehensive earnings (losses), net of deferred income taxes
— — — 911 — — 911 
Stock award activity
— 13 — — 13 — 26 
Cash dividends declared ($2.62 per share)
— — (4,845)— — — (4,845)
Repurchases of common stock— — — — (972)— (972)
Other (1)
— (77)— — — (80)(157)
Balances, September 30, 2021
$935 $5,846 $30,685 $(3,430)$(35,303)$2 $(1,265)
(1) Represents the purchase of the remaining noncontrolling interests in Helix in the second quarter of 2021.

See notes to condensed consolidated financial statements.


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Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
for the Three Months Ended September 30, 2022 and 2021
(in millions of dollars, except per share data)
(Unaudited)
_______________________________________ 

 Common
Stock		Additional
Paid-in
Capital		Earnings
Reinvested
in the
Business		Accumulated
Other
Comprehensive
Losses		Cost of
Repurchased
Stock		Total
Stockholders’
Equity (Deficit)
Balances, June 30, 2022$935 $5,861 $30,252 $(2,377)$(37,074)$(2,403)
Net earnings (losses)— — 224 — — 224 
Other comprehensive earnings (losses), net of deferred income taxes
— — — (6)— (6)
Stock award activity
— 12 — — — 12 
Cash dividends declared ($0.94 per share)
— — (1,691)— — (1,691)
Repurchases of common stock— — — — (368)(368)
Balances, September 30, 2022
$935 $5,873 $28,785 $(2,383)$(37,442)$(4,232)


 Attributable to Altria  
 Common
Stock		Additional
Paid-in
Capital		Earnings
Reinvested
in the
Business		Accumulated
Other
Comprehensive
Losses		Cost of
Repurchased
Stock		Non-
controlling
Interests		Total
Stockholders’
Equity (Deficit)
Balances, June 30, 2021$935 $5,840 $35,065 $(3,602)$(34,981)$2 $3,259 
Net earnings (losses)— — (2,722)— — — (2,722)
Other comprehensive earnings (losses), net of deferred income taxes
— — — 172 — — 172 
Stock award activity
— 6 — — — — 6 
Cash dividends declared ($0.90 per share)
— — (1,658)— — — (1,658)
Repurchases of common stock— — — — (322)— (322)
Balances, September 30, 2021
$935 $5,846 $30,685 $(3,430)$(35,303)$2 $(1,265)

See notes to condensed consolidated financial statements.


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Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of dollars)
(Unaudited)
_____________________
For the Nine Months Ended September 30,20222021
Cash Provided by (Used in) Operating Activities
Net earnings (losses)$3,074 $851 
Adjustments to reconcile net earnings (losses) to operating cash flows:
Depreciation and amortization163 190 
Deferred income tax provision (benefit)(550)(1,180)
(Income) losses from investments in equity securities3,707 5,789 
Dividends from ABI104 119 
(Gain) loss on Cronos-related financial instruments14 128 
Loss on early extinguishment of debt— 649 
Cash effects of changes:
Receivables(5)(7)
Inventories88 118 
Accounts payable(27)3 
Income taxes49 (200)
Accrued liabilities and other current assets(382)(104)
Accrued settlement charges(618)(568)
Pension plan contributions(11)(23)
Pension and postretirement (income) cost, net(110)(127)
Other, net141 104 
Net cash provided by (used in) operating activities5,637 5,742 
Cash Provided by (Used in) Investing Activities
Capital expenditures(147)(102)
Other, net(68)60 
Net cash provided by (used in) investing activities$(215)$(42)

See notes to condensed consolidated financial statements.

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Altria Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(in millions of dollars)
(Unaudited)
_____________________
For the Nine Months Ended September 30,20222021
Cash Provided by (Used in) Financing Activities
Long-term debt issued$— $5,472 
Long-term debt repaid(1,105)(6,542)
Repurchases of common stock(1,451)(972)
Dividends paid on common stock(4,908)(4,787)
Premiums and fees related to early extinguishment of debt— (623)
Other, net(12)(216)
Net cash provided by (used in) financing activities(7,476)(7,668)
Cash, cash equivalents and restricted cash:
Increase (decrease)(2,054)(1,968)
Balance at beginning of period4,594 5,006 
Balance at end of period$2,540 $3,038 
The following table provides a reconciliation of cash, cash equivalents and restricted cash (1) to the amounts reported on Altria’s condensed consolidated balance sheets:
At September 30, 2022At December 31, 2021
Cash and cash equivalents$2,483 $4,544 
Restricted cash included in other current assets15 — 
Restricted cash included in other assets42 50 
Cash, cash equivalents and restricted cash$2,540 $4,594 
(1) Restricted cash consisted primarily of cash deposits collateralizing appeal bonds posted by PM USA to obtain stays of judgments pending appeals. See Note 11. Contingencies.

See notes to condensed consolidated financial statements.
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Altria Group, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Background and Basis of Presentation
When used in these notes, the terms “Altria,” “we,” “us” and “our” refer to either (i) Altria Group, Inc. and its consolidated subsidiaries or (ii) Altria Group, Inc. only and not its consolidated subsidiaries, as appropriate in the context.
▪Background: At September 30, 2022, our wholly owned subsidiaries included Philip Morris USA Inc. (“PM USA”), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco and is a wholly owned subsidiary of PM USA; UST LLC (“UST”), which through its wholly owned subsidiary U.S. Smokeless Tobacco Company LLC (“USSTC”), is engaged in the manufacture and sale of moist smokeless tobacco products (“MST”) and snus products; Helix Innovations LLC (“Helix”), which operates in the United States and Canada, and Helix Innovations GmbH and its affiliates (“Helix ROW”), which operate internationally in the rest-of-world, are engaged in the manufacture and sale of oral nicotine pouches; and Philip Morris Capital Corporation, which has one leveraged lease remaining. Other wholly owned subsidiaries included Altria Group Distribution Company, which provides sales and distribution services to our domestic tobacco operating companies, and Altria Client Services LLC (“ALCS”), which provides various support services to our companies in areas such as legal, regulatory, consumer engagement, finance, human resources and external affairs. Altria’s access to the operating cash flows of our wholly owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by our subsidiaries. At September 30, 2022, our significant wholly owned subsidiaries were not limited by contractual obligations in their ability to pay cash dividends or make other distributions with respect to their equity interests.
On October 1, 2021, UST sold its subsidiary, International Wine & Spirits Ltd., which included Ste. Michelle Wine Estates Ltd. (“Ste. Michelle”).
At September 30, 2022, we had investments in the following equity securities: Anheuser-Busch InBev SA/NV (“ABI”), Cronos Group Inc. (“Cronos”) and JUUL Labs, Inc. (“JUUL”). We account for our investments in ABI and Cronos under the equity method of accounting using a one-quarter lag. We account for our investment in JUUL at fair value.
For further discussion of our investments in equity securities, see Note 3. Investments in Equity Securities.
▪Dividends and Share Repurchases: In August 2022, our Board of Directors (“Board of Directors” or “Board”) approved a 4.4% increase in the quarterly dividend rate to $0.94 per share of our common stock versus the previous rate of $0.90 per share. The current annualized dividend rate is $3.76. Future dividend payments remain subject to the discretion of our Board.
In January 2021, our Board of Directors authorized a $2.0 billion share repurchase program that it expanded to $3.5 billion in October 2021 (as expanded, the “January 2021 share repurchase program”). At September 30, 2022, we had $374 million remaining in the January 2021 share repurchase program. The timing of share repurchases under this program depends upon marketplace conditions and other factors, and the program remains subject to the discretion of our Board.
Our share repurchase activity was as follows:
For the Nine Months Ended September 30,For the Three Months Ended September 30,
(in millions, except per share data)2022202120222021
Total number of shares repurchased
29.9 20.2 8.5 6.7 
Aggregate cost of shares repurchased
$1,451 $972 $368 $322 
Average price per share of shares repurchased
$48.60 $48.17 $43.68 $48.35 
▪Basis of Presentation: Our interim condensed consolidated financial statements are unaudited. Our management believes that all adjustments necessary for a fair statement of the interim results presented have been reflected in our interim condensed consolidated financial statements. All such adjustments were of a normal recurring nature. Net revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year.
These statements should be read in conjunction with our audited consolidated financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2021.
On January 1, 2022, we adopted Accounting Standards Update (“ASU”) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”). This guidance simplifies the accounting for certain financial
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instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Our adoption of ASU No. 2020-06 did not have a material impact on our condensed consolidated financial statements.
For a description of issued accounting guidance applicable to, but not yet adopted by, us, see Note 12. New Accounting Guidance Not Yet Adopted.

Note 2. Revenues from Contracts with Customers
We disaggregate net revenues based on product type. For further discussion, see Note 8. Segment Reporting.
We calculate substantially all cash discounts, offered to customers for prompt payment, as a flat rate per unit based on agreed-upon payment terms. Prior to the first quarter of 2021 for USSTC and the third quarter of 2021 for PM USA, cash discounts were calculated as a percentage of the list price based on historical experience and agreed-upon payment terms. We record receivables net of the cash discounts on our condensed consolidated balance sheets.
We record payments received in advance of product shipment as deferred revenue. These payments are included in other accrued liabilities on our condensed consolidated balance sheets until control of such products is obtained by the customer. Deferred revenue was $310 million and $287 million at September 30, 2022 and December 31, 2021, respectively. When cash is received in advance of product shipment, we satisfy our performance obligations within three days of receiving payment. At September 30, 2022 and December 31, 2021, there were no differences between amounts recorded as deferred revenue and amounts subsequently recognized as revenue.
Receivables were $52 million and $47 million at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, there were no expected differences between amounts recorded and subsequently received, and we did not record an allowance for credit losses against these receivables.
We record an allowance for returned goods, which is included in other accrued liabilities on our condensed consolidated balance sheets. It is USSTC’s policy to accept authorized sales returns from its customers for products that have passed the freshness date printed on product packaging due to the limited shelf life of USSTC’s MST and snus products. We record estimated sales returns, which are based principally on historical volume and return rates, as a reduction to revenues. Actual sales returns will differ from estimated sales returns to the extent actual results differ from estimated assumptions. We reflect differences between actual and estimated sales returns in the period in which the actual amounts become known. These differences, if any, have not had a material impact on our condensed consolidated financial statements. All returned goods are destroyed upon return and not included in inventory. Consequently, we do not record an asset for USSTC’s right to recover goods from customers upon return.
Sales incentives include variable payments related to goods sold. We include estimates of variable consideration as a reduction to revenues upon shipment of goods to customers. The sales incentives that require significant estimates and judgments are as follows:
Price promotion payments- We make price promotion payments, substantially all of which are made to our retail partners, to incent the promotion of certain product offerings in select geographic areas.
Wholesale and retail participation payments- We make payments to our wholesale and retail partners to incent merchandising and sharing of sales data in accordance with our trade agreements.
These estimates primarily include estimated wholesale to retail sales volume and historical acceptance rates. Actual payments will differ from estimated payments to the extent actual results differ from estimated assumptions. Differences between actual and estimated payments are reflected in the period such information becomes available. These differences, if any, have not had a material impact on our condensed consolidated financial statements.

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Note 3. Investments in Equity Securities
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.
(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.
Investment in ABI
At September 30, 2022, we had an approximate 10% ownership interest in ABI, consisting of 185 million restricted shares of ABI (the “Restricted Shares”) and 12 million ordinary shares of ABI. The Restricted Shares:
▪are unlisted and not admitted to trading on any stock exchange;
▪are convertible by us into ordinary shares of ABI on a one-for-one basis;
▪rank equally with ordinary shares of ABI with regards to dividends and voting rights; and
▪have director nomination rights with respect to ABI.
The Restricted Shares were subject to a five-year lock-up period that ended October 10, 2021. As of this filing, we have not elected to convert our Restricted Shares into ordinary shares of ABI.
We account for our investment in ABI under the equity method of accounting because we have the ability to exercise significant influence over the operating and financial policies of ABI, including having active representation on ABI’s board of directors and certain ABI board committees. Through this representation, we participate in ABI’s policy making processes.
We report our share of ABI’s results using a one-quarter lag because ABI’s results are not available in time for us to record them in the concurrent period.
The fair value of our equity investment in ABI is based on (i) unadjusted quoted prices in active markets for ABI’s ordinary shares and was classified in Level 1 of the fair value hierarchy and (ii) observable inputs other than Level 1 prices, such as quoted prices for similar assets for the Restricted Shares, and was classified in Level 2 of the fair value hierarchy. We can convert the Restricted Shares to ordinary shares at our discretion. Therefore, the fair value of each Restricted Share is based on the value of an ordinary share.
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At December 31, 2021, the fair value of our equity investment in ABI was $11.9 billion (carrying value of $11.1 billion), which exceeded its carrying value by $0.8 billion or approximately 7%. In May 2022, the fair value of our equity investment in ABI declined below its carrying value and has not recovered. At June 30, 2022, the fair value of our equity investment in ABI was below its carrying value by $1.1 billion or approximately 9%. Accounting guidance requires the evaluation of the following factors when determining if the decline in fair value is other than temporary: (i) the duration and magnitude of the fair value decline; (ii) the financial condition and near-term prospects of the investee; and (iii) the investor’s intent and ability to hold its equity investment until recovery. In preparing our financial statements for the period ended June 30, 2022, we evaluated these factors and concluded that the decline in fair value of our equity investment in ABI at June 30, 2022 below its carrying value was temporary and, therefore, no impairment was recorded at that time.
In preparing our financial statements for the period ended September 30, 2022, we considered the same accounting guidance described above to determine if the decline in fair value is other than temporary. We evaluated the factors related to the fair value decline, including the macroeconomic and geopolitical factors that have significantly impacted certain foreign exchange rates and global equity markets. We concluded that the decline in fair value of our equity investment in ABI at September 30, 2022 was other than temporary as we now anticipate that the full recovery to the carrying value will take longer than previously expected. As a result, we recorded a non-cash, pre-tax impairment charge of $2.5 billion for the nine and three months ended September 30, 2022, which was recorded to (income) losses from investments in equity securities in our condensed consolidated statements of earnings (losses). This impairment charge reflects the difference between the fair value of our equity investment in ABI using ABI’s share price at September 30, 2022 and the carrying value of our equity investment in ABI at September 30, 2022. At September 30, 2022, prior to recording the impairment charge, the fair value of our equity investment in ABI was below its carrying value by approximately 22%. After recording the impairment charge, each of the fair value and carrying value of our equity investment in ABI at September 30, 2022 was $9.0 billion.
At September 30, 2022, the carrying value of our equity investment in ABI exceeded its share of ABI’s net assets attributable to equity holders of ABI by approximately $2.5 billion. Substantially all of this difference is comprised of goodwill and other indefinite-lived intangible assets (consisting primarily of trademarks).
At September 30, 2021, the fair value of our equity investment in ABI had declined below its carrying value by $6.2 billion. We considered the same accounting guidance described above to determine if the decline in fair value was other than temporary. In preparing our financial statements for the period ended September 30, 2021, we concluded that the decline in fair value of our equity investment in ABI at September 30, 2021 was other than temporary. As a result, we recorded a non-cash, pre-tax impairment charge of $6.2 billion for the nine and three months ended September 30, 2021, which was recorded to (income) losses from investments in equity securities in our condensed consolidated statements of earnings (losses). This impairment charge reflected the difference between the fair value of our equity investment in ABI using ABI’s share price at September 30, 2021 and the carrying value of our equity investment in ABI at September 30, 2021.
Investment in JUUL
In December 2018, we made an investment in JUUL for $