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Investments in Equity Securities (Tables) | 6 Months Ended
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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 |

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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