Investments in Equity Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments [Abstract]

Investment

The carrying amount of our investments consisted of the following:

(in millions)	June 30, 2022		December 31, 2021
ABI	$	11,702	$	11,144
JUUL	450		1,705
Cronos (1)	438		632
Total	$	12,590	$	13,481

(1) Our investment in Cronos at June 30, 2022 and December 31, 2021 consisted of our equity method investment in Cronos of $437 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 equity investments accounted for under the equity method of accounting and fair value option consisted of the following:

	For the Six Months Ended June 30,				For the Three Months Ended June 30,
(in millions)	2022		2021		2022		2021
ABI (1)	$	(212)	$	(392)	$	(12)	$	(74)
Cronos (1)	186		166		120		99
(Income) losses from investments under equity method of accounting	(26)		(226)		$	108	$	25
JUUL	1,255		100		1,155		(100)
(Income) losses from equity investments	$	1,229	$	(126)	$	1,263	$	(75)

(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 GAAP and (ii) adjustments to our investment required under the equity method of accounting.

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 Six Months Ended June 30,				For the Three Months Ended June 30,
(in millions)	2022		2021		2022		2021
Fixed-price Preemptive Rights	$	1	$	4	$	1	$	18
Cronos warrant	13		(11)		3		85
Total	$	14	$	(7)	$	4	$	103

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 equity investments	—
Balance at December 31, 2021	$	1,705
Unrealized gains (losses) included in (income) losses from equity investments	(1,255)
Balance at June 30, 2022	$	450