Qwest Corp Q3 2024 10-Q Filing

TL;DR

Qwest Corp's Q3 2024 10-Q is in. Check revenue and debt details.

AI Summary

Qwest Corp filed its 10-Q for the period ending September 30, 2024. The filing includes financial data for the third quarter and the first nine months of 2024, comparing it to the same periods in 2023. Key financial items such as revenue from affiliate and non-affiliate services, and long-term debt like the A6.5% Notes Due 2056 and A6.75% Notes Due 2057 are detailed.

Why It Matters

This filing provides investors and analysts with the latest financial performance and debt structure of Qwest Corp, crucial for understanding the company's operational health and future financial obligations.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Latest quarterly financial data)
• 2023-09-30 — Prior Year Reporting Period End Date (Comparison for financial performance)

Key Players & Entities

• QWEST CORP (company) — Filer
• 0000068622 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241105 (date) — Filed as of Date
• A6.5% Notes Due 2056 (dollar_amount) — Debt Instrument
• A6.75% Notes Due 2057 (dollar_amount) — Debt Instrument

FAQ

Filing Documents

• lumn-20240930.htm (10-Q) — 783KB
• qc2024093010qex311.htm (EX-31.1) — 9KB
• qc2024093010qex312.htm (EX-31.2) — 9KB
• qc2024093010qex321.htm (EX-32.1) — 4KB
• qc2024093010qex322.htm (EX-32.2) — 5KB
• 0000068622-24-000016.txt ( ) — 4625KB
• lumn-20240930.xsd (EX-101.SCH) — 37KB
• lumn-20240930_cal.xml (EX-101.CAL) — 60KB
• lumn-20240930_def.xml (EX-101.DEF) — 167KB
• lumn-20240930_lab.xml (EX-101.LAB) — 407KB
• lumn-20240930_pre.xml (EX-101.PRE) — 291KB
• lumn-20240930_htm.xml (XML) — 573KB

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," "likely," "seeks," "hopes," or variation

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS QWEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Dollars in millions) OPERATING REVENUE Operating revenue $ 793 924 2,468 2,869 Operating revenue—affiliates 570 526 1,676 1,589 Total operating revenue 1,363 1,450 4,144 4,458 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) 389 416 1,132 1,207 Selling, general and administrative 111 118 357 362 Operating expenses—affiliates 182 225 575 600 Depreciation and amortization 183 207 557 607 Total operating expenses 865 966 2,621 2,776 OPERATING INCOME 498 484 1,523 1,682 OTHER (EXPENSE) INCOME Interest expense, net ( 11 ) ( 23 ) ( 44 ) ( 75 ) Interest income—affiliate, net 8 5 14 7 Other income, net 2 1 1 5 Total other expense, net ( 1 ) ( 17 ) ( 29 ) ( 63 ) INCOME BEFORE INCOME TAX EXPENSE 497 467 1,494 1,619 Income tax expense 132 126 398 426 NET INCOME $ 365 341 1,096 1,193 See accompanying notes to consolidated financial statements. 6 Table of Contents QWEST CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2024 December 31, 2023 (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 22 10 Accounts receivable, less allowance of $ 31 and $ 34 217 261 Advances to affiliates 576 — Other 133 144 Total current assets 948 415 Property, plant and equipment, net of accumulated depreciation of $ 8,748 and $ 8,239 8,829 8,700 GOODWILL AND OTHER ASSETS Goodwill 6,955 6,955 Other intangible assets, net 92 103 Other, net 164 164 Total goodwill and other assets 7,211 7,222 TOTAL ASSETS $ 16,988 16,337 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 241 1 Accounts payable 239 362 Advances from affiliates — 61 Accrued expenses and other liabilities Salaries and benefits 131 130 Income and other taxes 108 96 Other

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"). Note 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 firs

View Full Filing

View this 10-Q filing on SEC EDGAR