Accounts Receivable, Related Parties

AT&T INC.SEPTEMBER 30, 2022  
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - ContinuedDollars in millions except per share amounts  
NOTE 11. TRANSACTIONS WITH DIRECTV  
On July 31, 2021, we closed our transaction with TPG to form a new company named DIRECTV. The transaction resulted in our deconsolidation of the Video business. As DIRECTV is jointly governed by a board with representation from both AT&T and TPG, with TPG having tie-breaking authority on certain key decisions, most significantly the appointment and removal of the CEO, we have concluded that we are not the primary beneficiary of DIRECTV. Effective August 1, 2021, we began accounting for our investment in DIRECTV under the equity method and recorded our share of DIRECTV earnings as equity in net income of affiliates, with DIRECTV considered a related party.  
For the nine months ended September 30, 2022, our share of DIRECTV’s earnings included in equity in net income of affiliates was $1,429. Cash distributions from DIRECTV for the first nine months totaled $3,634, with $1,429 classified as operating activities and $2,205 classified as investing activities in our consolidated statement of cash flows. Our investment in DIRECTV at September 30, 2022 was $3,352.   
In addition to the assets and liabilities contributed to DIRECTV, at close we recorded total obligations of $2,100 to cover certain net losses under the NFL SUNDAY TICKET contract, of which $1,800 is in the form of a note payable to DIRECTV. During the first nine months of 2022, cash payments to DIRECTV on the note totaled $1,070 and were classified as financing activities in our consolidated statement of cash flows. Amounts due under the DIRECTV note were $271 at September 30, 2022.  
We also provide DIRECTV with network transport for U-verse products and sales services under commercial arrangements for up to five years. Under separate transition services agreements, we provide DIRECTV certain operational support, including servicing of certain of their customer receivables for up to three years. For the nine months ended September 30, 2022, we billed DIRECTV approximately $920 for these costs, which were recorded as a reduction to the operations and support expenses incurred and resulted in net retained costs to AT&T of $197 in the third quarter and $532 for the first nine months of 2022.  
At September 30, 2022, we had accounts receivable from DIRECTV of $571 and accounts payable to DIRECTV of $210.  
We are not committed, implicitly or explicitly to provide financial or other support, other than noted above, as our involvement with DIRECTV is limited to the carrying amount of the assets and liabilities recognized on our balance sheet.  
NOTE 12. ADDITIONAL FINANCIAL INFORMATION Cash and Cash FlowsWe typically maintain our restricted cash balances for purchases and sales of certain investment securities and funding of certain deferred compensation benefit payments.  
The following table summarizes cash and cash equivalents and restricted cash balances contained on our consolidated balance sheets:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | September 30, |  | December 31, |
|   | 2022 |  | 2021 |  | 2021 |  | 2020 |
| Cash and cash equivalents from continuing operations | $ | 2,423  |  |  | $ | 18,485  |  |  | $ | 19,223  |  |  | $ | 7,924  |  |
| Cash and cash equivalents from discontinued operations | —  |  |  | 2,785  |  |  | 1,946  |  |  | 1,816  |  |
| Restricted cash in Prepaid and other current assets | 1  |  |  | 2  |  |  | 3  |  |  | 9  |  |
| Restricted cash in Other Assets | 70  |  |  | 133  |  |  | 144  |  |  | 121  |  |
| Cash and Cash Equivalents and Restricted Cash | $ | 2,494  |  |  | $ | 21,405  |  |  | $ | 21,316  |  |  | $ | 9,870  |  |
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