Qwest Corp Files 10-Q, Details Services and Debt

TL;DR

Qwest's 10-Q shows revenue from affiliate and non-affiliate services, plus details on long-term debt like 2056 and 2057 notes.

AI Summary

Qwest Corp filed its 10-Q for the period ending June 30, 2024. The filing details financial information for the company, including segments like NonAffiliateServices and AffiliateServices. Specific debt instruments such as A6.5NotesDue2056Member and A6.75NotesDue2057Member are mentioned, indicating ongoing financial obligations.

Why It Matters

This filing provides insight into Qwest Corp's financial health and operational segments, which can impact investors and the telecommunications market.

Risk Assessment

Risk Level: medium — The filing mentions specific debt instruments and financial reporting segments, suggesting potential financial risks and operational complexities.

Key Numbers

• 20240630 — Period End Date (The 10-Q covers financial activities up to this date.)
• 2024-01-01 to 2024-06-30 — Reporting Period (Covers the first six months of 2024 for financial reporting.)

Key Players & Entities

• Qwest Corp (company) — Filer of the 10-Q
• 0000068622 (company) — Central Index Key for Qwest Corp
• 20240630 (date) — Period of report for the 10-Q
• A6.5NotesDue2056Member (dollar_amount) — Debt instrument mentioned
• A6.75NotesDue2057Member (dollar_amount) — Debt instrument mentioned

FAQ

Filing Documents

• lumn-20240630.htm (10-Q) — 771KB
• qc2024063010qex311.htm (EX-31.1) — 9KB
• qc2024063010qex312.htm (EX-31.2) — 9KB
• qc2024063010qex321.htm (EX-32.1) — 4KB
• qc2024063010qex322.htm (EX-32.2) — 5KB
• 0000068622-24-000012.txt ( ) — 4439KB
• lumn-20240630.xsd (EX-101.SCH) — 36KB
• lumn-20240630_cal.xml (EX-101.CAL) — 55KB
• lumn-20240630_def.xml (EX-101.DEF) — 167KB
• lumn-20240630_lab.xml (EX-101.LAB) — 396KB
• lumn-20240630_pre.xml (EX-101.PRE) — 273KB
• lumn-20240630_htm.xml (XML) — 558KB

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 37 Item 4.

Controls and Procedures

Controls and Procedures 37 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 6. Exhibits 39 Signature 40 * 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) OPERATING REVENUE Operating revenue $ 829 964 1,675 1,945 Operating revenue—affiliates 560 503 1,106 1,063 Total operating revenue 1,389 1,467 2,781 3,008 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) 373 404 743 791 Selling, general and administrative 118 116 246 244 Operating expenses—affiliates 181 184 393 375 Depreciation and amortization 187 203 374 400 Total operating expenses 859 907 1,756 1,810 OPERATING INCOME 530 560 1,025 1,198 OTHER (EXPENSE) INCOME Interest expense ( 14 ) ( 25 ) ( 33 ) ( 52 ) Interest income—affiliate, net 4 1 6 2 Other (expense) income, net ( 2 ) 3 ( 1 ) 4 Total other expense, net ( 12 ) ( 21 ) ( 28 ) ( 46 ) INCOME BEFORE INCOME TAX EXPENSE 518 539 997 1,152 Income tax expense 140 141 266 300 NET INCOME $ 378 398 731 852 See accompanying notes to consolidated financial statements. 6 Table of Contents QWEST CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2024 December 31, 2023 (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 18 10 Accounts receivable, less allowance of $ 35 and $ 34 246 261 Advances to affiliates 195 — Other 151 144 Total current assets 610 415 Property, plant and equipment, net of accumulated depreciation of $ 8,576 and $ 8,239 8,810 8,700 GOODWILL AND OTHER ASSETS Goodwill 6,955 6,955 Other intangible assets, net 92 103 Other, net 159 164 Total goodwill and other assets 7,206 7,222 TOTAL ASSETS $ 16,626 16,337 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 1 1 Accounts payable 270 362 Advances from affiliates — 61 Accrued expenses and other liabilities Salaries and benefits 107 130 Income and other taxes 84 96 Other 122 121 Current

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) References in this report to "QC," "Qwest," "we," "us," and "our" refer to Qwest Corporation and its consolidated subsidiaries. References to "Lumen Technologies" or "Lumen" refers to our ultimate parent company, Lumen Technologies, Inc. and its consolidated subsidiaries, including Level 3 Parent, LLC ("Level 3") and Level 3 Financing, Inc. ("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 financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations and cash flows for the first s

View Full Filing

View this 10-Q filing on SEC EDGAR