Annual report pursuant to Section 13 and 15(d)

Other Non-Current Assets

Other Non-Current Assets
12 Months Ended
Dec. 31, 2021
Other Assets, Noncurrent [Abstract]  
As of December 31, 2021 and 2020, other non-current assets, net consisted of the following (in millions):
December 31,
2021 2020
Contract assets, net of current expected credit losses $ 135  $ 80 
Advances made to municipalities for water system enhancements 81  84 
Equity method investments 56  81 
Advances and other asset conveyances to third parties to support LNG terminals 80  60 
Debt issuance costs and debt discount, net of accumulated amortization 34  42 
Advances made under EPC and non-EPC contracts
Advance tax-related payments and receivables 17  20 
Other 54  30 
Total other non-current assets, net $ 462  $ 406 

Equity Method Investments

As of December 31, 2021, our equity method investment consists of our interest in Midship Holdings, LLC (“Midship Holdings”), which manages the business and affairs of Midship Pipeline Company, LLC (“Midship Pipeline”). Midship Pipeline is currently operating an approximately 200-mile natural gas pipeline project (the “Midship Project”) that connects production in the Anadarko Basin to Gulf Coast markets. The Midship Project commenced operations in April 2020.

During the years ended December 31, 2021 and 2020, we recognized other-than-temporary impairment losses of $37 million and $129 million, respectively, related to our investment in Midship Holdings. Impairment during the years ended December 31, 2021 and 2020 was precipitated primarily due to declining market conditions in the energy industry and customer credit risk, resulting in a reduction in the fair value of our equity interests. During the year ended December 31, 2019, we recognized losses of $87 million related to our investments in certain equity method investees, including Midship Holdings. Impairments during the year ended December 31, 2019 were primarily the result of cost overruns and extended construction timelines for operating infrastructure of our investees’ projects, resulting in a reduction of the fair value of our equity interests.
The fair values of our equity interests were measured using an income approach, which utilized level 3 fair value inputs such as projected earnings and discount rates, and/or market approach. Impairment losses associated with our equity method investments are presented in other expense, net.

Our investment in Midship Holdings, net of impairment losses, was $56 million and $80 million as of December 31, 2021 and 2020, respectively.