Other liabilities

AT&T INC.SEPTEMBER 30, 2022  
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - ContinuedDollars in millions except per share amounts  
The following is a summary of operating results included in income (loss) from discontinued operations for the third quarter and nine months ended September 30:  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended |  | Nine months ended |
|   | September 30, |  | September 30, |
|   | 20221 |  | 2021 |  | 2022 |  | 2021 |
| Revenues | $ | 4  |  |  | $ | 8,596  |  |  | $ | 9,454  |  |  | $ | 24,963  |  |
| Operating Expenses |  |  |  |  |  |  |  |
| Cost of revenues | 1  |  |  | 4,392  |  |  | 5,481  |  |  | 13,830  |  |
| Selling, general and administrative | 10  |  |  | 2,113  |  |  | 2,789  |  |  | 5,649  |  |
| Asset abandonments and impairments | —  |  |  | 57  |  |  | —  |  |  | 4,612  |  |
| Depreciation and amortization | 1  |  |  | 1,163  |  |  | 1,173  |  |  | 3,837  |  |
| Total operating expenses | 12  |  |  | 7,725  |  |  | 9,443  |  |  | 27,928  |  |
| Interest expense | —  |  |  | 40  |  |  | 131  |  |  | 131  |  |
| Equity in net income (loss) of affiliates | —  |  |  | (93) |  |  | (27) |  |  | 25  |  |
| Other income (expense) – net2 | 71  |  |  | 757  |  |  | (68) |  |  | 541  |  |
| Total other income (expense) | 71  |  |  | 624  |  |  | (226) |  |  | 435  |  |
| Income (Loss) before income taxes  | 63  |  |  | 1,495  |  |  | (215) |  |  | (2,530) |  |
| Income tax expense (benefit) | 10  |  |  | 241  |  |  | (69) |  |  | (45) |  |
| Net income (loss) from discontinued operations | $ | 53  |  |  | $ | 1,254  |  |  | $ | (146) |  |  | $ | (2,485) |  |
| 1Includes results from WarnerMedia operations in Mexico that were subject to regulatory approval that transferred in September 2022. |
| 2“Other income (expense) - net” includes a gain from post-closing adjustment related to the sale of the marketplace component of Xandr in the three and nine months ended September 30, 2022, and a gain of $766 from the sale of Playdemic for the three months and nine months ended September 30, 2021. |

  
The following is a summary of assets and liabilities attributable to discontinued operations, which were included in our Consolidated Balance Sheet at December 31, 2021:

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|   |  | December 31, |
|   |  | 2021 |
| Assets: |  |  |
| Current assets |  | $ | 9,005  |  |
| Noncurrent Inventories and Theatrical Film and Television Production Costs |  | 18,983  |  |
| Property, plant and equipment, net |  | 4,255  |  |
| Goodwill |  | 40,484  |  |
| Other Intangibles – Net |  | 40,273  |  |
| Other assets |  | 6,776  |  |
| Total assets, discontinued operations |  | $ | 119,776  |  |
|  |  |  |
| Liabilities: |  |  |
| Current liabilities |  | $ | 12,912  |  |
| Other liabilities |  | 20,643  |  |
| Total liabilities, discontinued operations |  | $ | 33,555  |  |
|  |  |  |

 In preparation for close, on April 7, 2022, Spinco drew $10,000 on its $10,000 term loan credit agreement (Spinco Term Loan), which conveyed to WBD. Total debt conveyed was approximately $41,600, which includes $1,600 of existing WarnerMedia debt, $30,000 of Spinco senior notes issued in March 2022 and the $10,000 Spinco Term Loan. WarnerMedia cash transfer to Discovery was approximately $2,660.35
