Qwest Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Qwest Corp has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

QWEST CORP (CTDD) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Qwest Corp filed a 10-Q for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. Qwest Corp is incorporated in Colorado. The company's primary SIC code is 4813 (Telephone Communications).

Why It Matters

For investors and stakeholders tracking QWEST CORP, this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Qwest Corp. Understanding the details within this 10-Q is crucial for assessing the company's current financial health and future prospects.

Risk Assessment

Risk Level: low — QWEST CORP shows low risk based on this filing. The filing is a standard 10-Q, indicating routine financial reporting with no immediate red flags.

Analyst Insight

Review the detailed financial statements and segment revenues within the 10-Q to understand Qwest Corp's performance drivers.

Key Numbers

• 2024-03-31 — Reporting Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-30 — Filing Date (FILED AS OF DATE)
• 1231 — Fiscal Year End (FISCAL YEAR END)
• 4813 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• QWEST CORP (company) — FILER
• MOUNTAIN STATES TELEPHONE & TELEGRAPH CO (company) — FORMER COMPANY

FAQ

Industry Context

Qwest Corp operates within the telecommunications industry, providing essential communication services.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze revenue trends across different segments (Grow, Nurture, Harvest, Fiber Broadband, etc.).
2. Examine any disclosed changes in accounting methods or corrections of prior period errors.
3. Review the company's balance sheet for changes in assets, liabilities, and equity.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Filing Documents

• lumn-20240331.htm (10-Q) — 635KB
• qc2024033110qex311.htm (EX-31.1) — 9KB
• qc2024033110qex312.htm (EX-31.2) — 9KB
• qc2024033110qex321.htm (EX-32.1) — 4KB
• qc2024033110qex322.htm (EX-32.2) — 5KB
• 0000068622-24-000007.txt (&nbsp;) — 3948KB
• lumn-20240331.xsd (EX-101.SCH) — 34KB
• lumn-20240331_cal.xml (EX-101.CAL) — 59KB
• lumn-20240331_def.xml (EX-101.DEF) — 157KB
• lumn-20240331_lab.xml (EX-101.LAB) — 379KB
• lumn-20240331_pre.xml (EX-101.PRE) — 261KB
• lumn-20240331_htm.xml (XML) — 450KB

Financial Statements

Financial Statements Consolidated Statements of Operations (Unaudited) 6 Consolidated Balance Sheets (Unaudited) 7 Consolidated Statements of Cash Flows (Unaudited) 8 Consolidated Statements of Stockholder's Equity (Unaudited) 9

Notes to Consolidated Financial Statements (Unaudited)*

Notes to Consolidated Financial Statements (Unaudited)* 10 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 6. Exhibits 38 Signature 39 * All references to "Notes" in this quarterly report refer to these Notes to Consolidated Financial Statements, unless otherwise specified. 2 Table of Contents 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; other similar statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts, many of which are highlighted by words such as "may," "will," "would," "could," "should," "plans," "believes," "expects," "anticipates," "estimates," "forecasts," "projects," "proposes," "targets," "intends

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS QWEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2024 2023 (Dollars in millions) OPERATING REVENUE Operating revenue $ 846 981 Operating revenue—affiliates 546 560 Total operating revenue 1,392 1,541 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) 370 387 Selling, general and administrative 128 128 Operating expenses—affiliates 212 191 Depreciation and amortization 187 197 Total operating expenses 897 903 OPERATING INCOME 495 638 OTHER (EXPENSE) INCOME Interest expense ( 19 ) ( 27 ) Interest income—affiliate, net 2 1 Other income, net 1 1 Total other expense, net ( 16 ) ( 25 ) INCOME BEFORE INCOME TAX EXPENSE 479 613 Income tax expense 126 159 NET INCOME $ 353 454 See accompanying notes to consolidated financial statements. 6 Table of Contents QWEST CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2024 December 31, 2023 (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 14 10 Accounts receivable, less allowance of $ 38 and $ 34 272 261 Other 162 144 Total current assets 448 415 Property, plant and equipment, net of accumulated depreciation of $ 8,410 and $ 8,239 8,763 8,700 GOODWILL AND OTHER ASSETS Goodwill 6,955 6,955 Other intangible assets, net 99 103 Other, net 162 164 Total goodwill and other assets 7,216 7,222 TOTAL ASSETS $ 16,427 16,337 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 1 1 Accounts payable 305 362 Advances from affiliates 83 61 Accrued expenses and other liabilities Salaries and benefits 111 130 Income and other taxes 119 96 Other 121 121 Current portion of deferred revenue 159 162 Total current liabilities 899 933 LONG-TERM DEBT 1,941 2,156 DEFERRED CREDITS AND OTHER LIABILITIES Deferred income taxes, net 1,310 1,318 Affiliate obligations, net 481 495 Other 687 679 To

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Unless the context requires otherwise, references in this report to "QC" refer to Qwest Corporation, references to "Qwest," "we," "us," and "our" refer to Qwest Corporation and its consolidated subsidiaries, references to "QSC" refer to our direct parent company, Qwest Services Corporation and its consolidated subsidiaries, and references to "Lumen Technologies" or "Lumen" refer to our ultimate parent company, Lumen Technologies, Inc. and its consolidated subsidiaries, including Level 3 Parent, LLC, referred to as "Level 3", and "Level 3 Financing". (1) Background General 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. Our specific products and services are detailed in Note 3—Revenue Recognition of this report. We generate the majority of our total consolidated operating revenue from services provided in the 14 -state region of Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. We refer to this region as our local service area. Basis of Presentation Our consolidated balance sheet as of December 31, 2023, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe these consolidated financ

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