Investments in partnerships, joint ventures and less than majority-owned subsidiaries in which we have significant influence are accounted for under the equity method.

On July 31, 2021, we closed our transaction with TPG to form a new company named DIRECTV (see Note 6). The transaction resulted in our deconsolidation of the Video business, with DIRECTV being accounted for under the equity method beginning August 1, 2021.

Our investments in equity affiliates at December 31, 2022 primarily included our interests in DIRECTV and SKY Mexico.

DIRECTV We account for our investment in DIRECTV under the equity method of accounting. DIRECTV is considered a variable interest entity for accounting purposes. 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.

•Preferred units with distribution rights of $1,800 held by TPG, which were fully distributed in 2021.

•Junior preferred units with distribution rights of $4,250 held by AT&T, of which $702 of distribution rights remain as of December 31, 2022.

The initial fair value of the equity considerations on July 31, 2021 was $6,852, which was determined using a discounted cash flow model reflecting distribution rights and preference of the individual instruments. During 2022 and 2021, we recognized $1,808 and $619 of equity in net income of affiliates and received total distributions of $4,457 and $1,942, respectively, from DIRECTV. The book value of our investment in DIRECTV was $2,911 and $5,539 at December 31, 2022 and 2021.

Our share of net income or loss may differ from the stated ownership percentage interest of DIRECTV as the terms of the arrangement prescribe substantive non-proportionate cash distributions, both from operations and in liquidation, that are based on classes of interests held by investors. In the event that DIRECTV records a loss, that loss will be allocated to ownership interests based on their seniority, beginning with the most subordinated interests.

SKY Mexico We hold a 41.3% interest in SKY Mexico, which is a leading pay-TV provider in Mexico.

The following table presents summarized financial information for DIRECTV and our other equity method investments, consisting primarily of SKY Mexico and certain sports-related programming investments, at December 31, or for the year then ended:


	2022		2021		2020
Income Statements1

Operating revenues	$	25,794	$	12,220	$	1,282
Operating income	3,175		1,179		157
Net income	2,581		938		91





Balance Sheets

Current assets	4,240		5,295
Noncurrent assets	14,211		17,022
Current liabilities	6,681		7,191
Noncurrent liabilities	7,951		8,614
1Does not include DIRECTV for periods prior to August 1, 2021.

The following table is a reconciliation of our investments in equity affiliates as presented on our consolidated balance sheets:


	2022		2021
Beginning of year	$	6,168	$	742
Additional investments	3		—
Receipt of equity interest in DIRECTV	—		6,852
Distributions from DIRECTV in excess of cumulative equity in earnings	(2,649)		(1,323)
Other capital distributions	—		(6)
Dividends and distributions of cumulative earnings received	(1,815)		(701)
Equity in net income of affiliates	1,791		603


Currency translation adjustments	25		(14)
Other adjustments	10		15
End of year	$	3,533	$	6,168