Distributions from DIRECTV in excess of cumulative equity in earnings

  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| AT&T INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Dollars in millions |
| (Unaudited) |   |  |   |
|   | Nine months ended |
|   | September 30, |
|   | 2022 |  | 2021 |
| Operating Activities |   |  |   |
| Income from continuing operations | $ | 16,246  |  |  | $ | 18,574  |  |
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: |  |  |  |
|    Depreciation and amortization | 13,426  |  |  | 13,352  |  |
|  |  |  |  |
|  |  |  |  |
|    Provision for uncollectible accounts | 1,323  |  |  | 857  |  |
|    Deferred income tax expense | 2,947  |  |  | 5,234  |  |
|    Net (gain) loss on investments, net of impairments | 412  |  |  | (298) |  |
|    Pension and postretirement benefit expense (credit) | (2,529) |  |  | (2,876) |  |
| Actuarial (gain) loss on pension and postretirement benefits | (3,838) |  |  | (3,021) |  |
| Asset impairments and abandonments and restructuring | 745  |  |  | 105  |  |
| Changes in operating assets and liabilities: |  |  |  |
|    Receivables | 1,021  |  |  | (101) |  |
|    Other current assets | (799) |  |  | (484) |  |
|    Accounts payable and other accrued liabilities | (3,261) |  |  | (2,660) |  |
|    Equipment installment receivables and related sales | 906  |  |  | 715  |  |
|    Deferred customer contract acquisition and fulfillment costs | (756) |  |  | 287  |  |
| Postretirement claims and contributions | (443) |  |  | (425) |  |
| Other - net | 64  |  |  | (166) |  |
| Total adjustments | 9,218  |  |  | 10,519  |  |
| Net Cash Provided by Operating Activities from Continuing Operations | 25,464  |  |  | 29,093  |  |
| Investing Activities |  |  |  |
| Capital expenditures | (15,397) |  |  | (12,051) |  |
| Acquisitions, net of cash acquired | (9,959) |  |  | (23,533) |  |
| Dispositions | 49  |  |  | 7,061  |  |
| Distributions from DIRECTV in excess of cumulative equity in earnings | 2,205  |  |  | —  |  |
| Other - net | 91  |  |  | (5) |  |
|  |  |  |  |
|  |  |  |  |
| Net Cash Used in Investing Activities from Continuing Operations | (23,011) |  |  | (28,528) |  |
| Financing Activities |  |  |  |
| Net change in short-term borrowings with original maturities of three months or less | 84  |  |  | 630  |  |
| Issuance of other short-term borrowings | 3,955  |  |  | 17,476  |  |
| Repayment of other short-term borrowings | (16,861) |  |  | (2,448) |  |
| Issuance of long-term debt | 479  |  |  | 9,931  |  |
| Repayment of long-term debt | (24,412) |  |  | (1,574) |  |
| Note payable to DIRECTV, net of payments | (1,070) |  |  | 1,439  |  |
| Payment of vendor financing | (4,237) |  |  | (4,013) |  |
|  |  |  |  |
| Purchase of treasury stock | (875) |  |  | (191) |  |
| Issuance of treasury stock | 28  |  |  | 89  |  |
|  |  |  |  |
|  |  |  |  |
| Dividends paid | (7,845) |  |  | (11,319) |  |
|  |  |  |  |
| Other - net | (3,649) |  |  | (1,567) |  |
| Net Cash (Used in) Provided by Financing Activities from Continuing Operations | (54,403) |  |  | 8,453  |  |
| Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations | (51,950) |  |  | 9,018  |  |
| Cash flows from Discontinued Operations: |  |  |  |
| Cash (used in) provided by operating activities | (3,754) |  |  | 1,610  |  |
| Cash provided by (used in) investing activities | 1,029  |  |  | 1,195  |  |
| Cash provided by (used in) financing activities | 35,853  |  |  | (288) |  |
| Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | 33,128  |  |  | 2,517  |  |
| Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (18,822) |  |  | $ | 11,535  |  |
| Cash and cash equivalents and restricted cash beginning of year | 21,316  |  |  | 9,870  |  |
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | 2,494  |  |  | $ | 21,405  |  |
| See Notes to Consolidated Financial Statements. |

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