Qwest Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Qwest Corp has filed its 2023 10-K, detailing financial performance and debt obligations.</b>

AI Summary

QWEST CORP (CTDD) filed a Annual Report (10-K) with the SEC on February 22, 2024. Qwest Corp filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes financial data for the years 2021, 2022, and 2023. Key financial statement items such as revenues, net income, and retained earnings are detailed. The report references specific debt instruments, including 'A6.5NotesDue2056Member' and 'A6.75NotesDue2057Member'. Information on customer contract life for both consumer and business segments is provided.

Why It Matters

For investors and stakeholders tracking QWEST CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Qwest Corp's financial health and operational performance for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. The detailed financial data, including revenue breakdowns and debt specifics, allows stakeholders to evaluate the company's financial strategy, risk exposure, and overall market position.

Risk Assessment

Risk Level: medium — QWEST CORP shows moderate risk based on this filing. The filing is a standard 10-K, which typically contains a broad range of financial and operational information, but lacks specific forward-looking statements or immediate crisis indicators that would elevate the risk level.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Qwest Corp's performance and potential challenges.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-22 — Filing Date (Filed as of date)
• 4813 — Standard Industrial Classification (Telephone Communications (No Radio Telephone))
• 840273800 — IRS Number (Filer's IRS number)

Key Players & Entities

• QWEST CORP (company) — Filer name
• MOUNTAIN STATES TELEPHONE & TELEGRAPH CO (company) — Former company name
• CO (company) — State of incorporation
• MONROE (company) — Business and mail address city
• LA (company) — Business and mail address state

FAQ

Industry Context

Qwest Corp operates in the telecommunications industry, providing communication services.

Regulatory Implications

As a publicly traded company, Qwest Corp is subject to SEC regulations and reporting requirements, including the filing of annual 10-K reports.

What Investors Should Do

1. Analyze the revenue trends for NonAffiliateServicesMember and AffiliateservicesMember over the past three fiscal years.
2. Examine the details of the 'A6.5NotesDue2056Member' and 'A6.75NotesDue2057Member' debt instruments.
3. Review any disclosed risk factors to understand potential challenges facing Qwest Corp.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K
• 2024-02-22: Filing Date — Date the 10-K was filed with the SEC

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by Qwest Corp, containing detailed financial and operational information.)

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $2.4 billion — eductible goodwill impairment charge of $2.4 billion. For additional information, see Note 2

Filing Documents

• lumn-20231231.htm (10-K) — 1353KB
• qc202310-kexhibit45.htm (EX-4.5) — 57KB
• qc20231231ex311.htm (EX-31.1) — 9KB
• qc20231231ex312.htm (EX-31.2) — 9KB
• qc20231231ex321.htm (EX-32.1) — 4KB
• qc20231231ex322.htm (EX-32.2) — 5KB
• 0000068622-24-000005.txt (&nbsp;) — 8556KB
• lumn-20231231.xsd (EX-101.SCH) — 62KB
• lumn-20231231_cal.xml (EX-101.CAL) — 106KB
• lumn-20231231_def.xml (EX-101.DEF) — 321KB
• lumn-20231231_lab.xml (EX-101.LAB) — 765KB
• lumn-20231231_pre.xml (EX-101.PRE) — 531KB
• lumn-20231231_htm.xml (XML) — 1260KB

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 31

Legal Proceedings

Item 3. Legal Proceedings 32

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 32 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33

[Reserved]

Item 6. [Reserved] 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 47

Consolidated Financial Statements and Supplementary Data

Item 8. Consolidated Financial Statements and Supplementary Data 48 Consolidated Statements of Operations 50 Consolidated Balance Sheets 51 Consolidated Statements of Cash Flows 52 Consolidated Statements of Stockholder's Equity 53

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 54

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 90

Controls and Procedures

Item 9A. Controls and Procedures 90

Other Information

Item 9B. Other Information 91

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 76 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 92

Executive Compensation

Item 11. Executive Compensation 92

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 92

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 92

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 92 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 93

Summary Business and Financial Information

Item 16. Summary Business and Financial Information 95

Signatures

Signatures 96 2 Unless the context requires otherwise, (i) references in this report to "QC" refer to Qwest Corporation,(ii) references to "Qwest," "we," "us," "the Company" and "our" refer to Qwest Corporation and its consolidated subsidiaries,(iii) references to "QSC" refer to our direct parent company, Qwest Services Corporation and its consolidated subsidiaries,(iv) references to "QCII" refer to QSC's direct parent company and our indirect parent company, Qwest Communications International Inc., and its consolidated subsidiaries and (v) references to "Lumen Technologies", "Lumen Technologies, Inc." or "Lumen" refer to QCII's direct parent company and our ultimate parent company, Lumen Technologies, Inc., and its consolidated subsidiaries, including Level 3 Parent, LLC, referred to as "Level 3," and its finance subsidiary, Level 3 Financing, Inc. referred to as "Level 3 Financing." PART I Special Note Regarding Forward-Looking Statements This report and other documents filed by us under the federal securities law include, and future oral or written statements or press releases by us and our management may include, forward-looking statements about our business, financial condition, operating results or prospects. These "forward-looking" statements are defined by, and are subject to the "safe harbor" protections under, the federal securities laws. These statements include, among others: forecasts of our anticipated future results of operations, cash flows or financial position;

BUSINESS

ITEM 1. BUSINESS Business Overview and Purpose We are a facilities-based technology and communications company that provides a broad array of integrated communications products and services to our business and mass markets customers. We report our revenue derived from our operations serving our mass markets customers, primarily within the 'Other Broadband', 'Voice and Other' and 'Fiber Broadband' categories and our revenue derived from our operations servicing our business customers, primarily in the 'Harvest', 'Nurture' and 'Grow' categories. Our specific products and services are detailed below under the heading "Operations - Products and Services." 5 Our ultimate parent company, Lumen Technologies, Inc., has cash management arrangements or loan arrangements with a majority of its subsidiaries that include lines of credit, affiliate obligations, capital contributions and dividends. As part of these cash management or loan arrangements, affiliates provide lines of credit to certain other affiliates. Amounts outstanding under these lines of credit and intercompany obligations vary from time to time. Under these arrangements, the majority of our cash balance is advanced on a daily basis for centralized management by Lumen's service company affiliate. From time to time we may declare and pay dividends to QSC, our direct parent, using cash owed to us under these advances, which has the net effect of reducing the amount of these advances. We report the balance of these transfers on our consolidated balance sheet as advances to affiliates. We were incorporated under the laws of the State of Colorado in 1911. Our principal executive offices are located at 100 CenturyLink Drive, Monroe, Louisiana 71203 and our telephone number is (318) 388-9000. For a discussion of certain risks applicable to our business, see "Risk Factors" in Item 1A of Part I of this report. The summary financial information in this Item 1 should be read in conjunction with, and is qualified

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