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Investments in Equity Securities (Tables) | 9 Months Ended
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Sep. 30, 2022
Investments [Abstract] |
Investment | The carrying amount of our investments consisted of the following:
(in millions) |  | September 30, 2022 |  | December 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) | 2022 |  | 2021 |  | 2022 |  | 2021
ABI (1) | $ | 2,155 |  |  | $ | 5,644 |  |  | $ | 2,367 |  |  | $ | 6,036 |
Cronos (1) | 197 |  |  | 145 |  |  | 11 |  |  | (21) |
(Income) losses from investments under equity method of accounting | 2,352 |  |  | 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) | 2022 |  | 2021 |  | 2022 |  | 2021
Fixed-price Preemptive Rights | $ | 1 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 17 |
Cronos warrant | 13 |  |  | 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 |

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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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