Equity Method Investments Investments in partnerships, joint ventures and less than majority-owned subsidiaries in which we have significant influence are accounted for under the equity method... The following table is a reconciliation of our investments in equity affiliates as presented on our consolidated balance sheets. $ millions 2015 2014 $361 $3,971 77 226 1,232 83 175 (30) (148) (3,817) (46) (2) $1,721 $361 Beginning of year Additional investments DIRECTV investments acquired Equity in net income of affiliates Dividends and distributions received Sale of America Movil shares Other adjustments End of year Undistributed earnings from equity affiliates were $162 and $88 at December 31, 2015 and 2014. a. At what amount is the equity investment in affiliates reported on AT&T's balance sheet? $ 1721 million b. Did affiliates pay dividends in 2015? OYes, the receipt of dividends would reduce the balance of the equity method investment account, which is shown in the table. ONo, the receipt of dividends would increase the balance of the equity method investment account rather than reduce it as shown in the table. ONot enough information is provided to determine if the affiliates paid dividends in 2015. c. How much income did AT&T report in 2015 relating to this investment in affiliates? Use a negative sign to indicate a net loss, if applicable. $ 83 million c. How much income did AT&T report in 2015 relating to this investment in affiliates? Use a negative sign to indicate a net loss, if applicable. $83 million d. Interpret the AT&T statement that "undistributed earnings from equity affiliates were $162 and $88 at December 31, 2015 and 2014." OUndistributed earnings are earnings that have been paid out as dividends; this amount is retained earnings of the affiliates at year-end. OUndistributed earnings are earnings that have not yet been paid out as equity income; this amount is included in AT&T's retained earnings at year-end. Undistributed earnings are earnings that have not yet been paid out as dividends; this amount is retained earnings of the affiliates at year-end. OUndistributed earnings are earnings that have not yet been paid out as dividends; this amount is included in AT&T's AOCI at year-end.