Lumen Technologies, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Lumen Technologies, Inc. (LUMN) filed its Q1 2024 10-Q report detailing financial performance and corporate structure.</b>

AI Summary

Lumen Technologies, Inc. (LUMN) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Lumen Technologies, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company was formerly known as CenturyLink, Inc. The filing includes data related to common stock and preferred stock. Financial data points such as Additional Paid In Capital, Accumulated Other Comprehensive Income, and Retained Earnings are detailed.

Why It Matters

For investors and stakeholders tracking Lumen Technologies, Inc., this filing contains several important signals. This filing provides investors with the latest financial snapshot of Lumen Technologies, Inc., crucial for understanding its current operational and financial health. The detailed financial statements and disclosures within the 10-Q are essential for investment analysis, risk assessment, and compliance with SEC regulations.

Risk Assessment

Risk Level: medium — Lumen Technologies, Inc. shows moderate risk based on this filing. The company has a history of name changes and divestitures, indicating potential ongoing strategic shifts or restructuring that could impact future performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to assess Lumen's current financial health and future prospects.

Key Numbers

• 2024-03-31 — Report Period End Date (10-Q filing)
• 2024-04-30 — Filing Date (10-Q filing)
• 2024-01-01 — Quarter Start Date (10-Q filing)
• 2023-03-31 — Prior Year Quarter End Date (10-Q filing)

Key Players & Entities

• Lumen Technologies, Inc. (company) — Filer name
• CenturyLink, Inc. (company) — Former company name
• CenturyTel Inc (company) — Former company name
• Century Telephone Enterprises Inc (company) — Former company name

FAQ

Risk Factors

• Correction of Error [medium — financial]: The company identified a correction of an error from the understatement of revenues and network expenses prior to 2021.

Industry Context

Lumen Technologies operates in the telecommunications industry, providing a range of services including fiber optic networks and IT solutions.

Regulatory Implications

As a publicly traded telecommunications company, Lumen Technologies is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the detailed financial statements for Q1 2024, focusing on revenue trends and profitability.
2. Review the risk factors section for any new or updated risks that could impact the company's operations or stock price.
3. Compare Q1 2024 performance against previous quarters and the same quarter last year to identify significant changes.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q.
• 2024-04-30: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for 2024, providing updated financial information compared to the previous fiscal year's filings.

Key Financial Figures

• $1.00 — ich Registered Common Stock, par value $1.00 per share LUMN New York Stock Exchange

Filing Documents

• lumn-20240331.htm (10-Q) — 1415KB
• lumn2024033110qex311.htm (EX-31.1) — 9KB
• lumn2024033110qex312.htm (EX-31.2) — 9KB
• lumn2024033110qex321.htm (EX-32.1) — 5KB
• lumn2024033110qex322.htm (EX-32.2) — 5KB
• lumn-20240331_g1.jpg (GRAPHIC) — 9KB
• 0000018926-24-000054.txt (&nbsp;) — 8554KB
• lumn-20240331.xsd (EX-101.SCH) — 65KB
• lumn-20240331_cal.xml (EX-101.CAL) — 83KB
• lumn-20240331_def.xml (EX-101.DEF) — 329KB
• lumn-20240331_lab.xml (EX-101.LAB) — 681KB
• lumn-20240331_pre.xml (EX-101.PRE) — 494KB
• lumn-20240331_htm.xml (XML) — 1411KB

Financial Statements

Financial Statements Consolidated Statements of Operations (Unaudited) 6 Consolidated Statements of Comprehensive Income (Unaudited) 7 Consolidated Balance Sheets (Unaudited) 8 Consolidated Statements of Cash Flows (Unaudited) 9 Consolidated Statements of Stockholders' Equity (Unaudited) 10

Notes to Consolidated Financial Statements (Unaudited)*

Notes to Consolidated Financial Statements (Unaudited)* 11 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 44 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 62 Item 4.

Controls and Procedures

Controls and Procedures 62 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 63 Item 1A.

Risk Factors

Risk Factors 63 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 64 Item 6. Exhibits 65 Signature 68 * All references to "Notes" in this quarterly report refer to these Notes to Consolidated Financial Statements. 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," "anticipa

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS LUMEN TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2024 2023 (Dollars in millions, except per share amounts, and shares in thousands) OPERATING REVENUE $ 3,290 3,738 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) 1,652 1,817 Selling, general and administrative 823 721 Loss on sale of business 22 77 Depreciation and amortization 748 733 Total operating expenses 3,245 3,348 OPERATING INCOME 45 390 OTHER INCOME (EXPENSE) Interest expense ( 291 ) ( 279 ) Net gain on early retirement of debt (Note 5) 275 609 Other income (expense), net 73 ( 40 ) Total other income, net 57 290 INCOME BEFORE INCOME TAXES 102 680 Income tax expense 45 169 NET INCOME $ 57 511 BASIC AND DILUTED EARNINGS PER COMMON SHARE BASIC $ 0.06 0.52 DILUTED $ 0.06 0.52 WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING BASIC 984,855 981,555 DILUTED 986,262 982,283 See accompanying notes to consolidated financial statements. 6 Table of Contents LUMEN TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31, 2024 2023 (Dollars in millions) NET INCOME $ 57 511 OTHER COMPREHENSIVE INCOME: Items related to employee benefit plans: Change in net actuarial loss, net of $( 6 ) and $( 5 ) tax 18 15 Change in net prior service cost, net of $ 1 and $ 1 tax ( 3 ) ( 3 ) Foreign currency translation adjustment, net of $ — and $( 6 ) tax ( 4 ) 18 Other comprehensive income 11 30 COMPREHENSIVE INCOME $ 68 541 See accompanying notes to consolidated financial statements. 7 Table of Contents LUMEN TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2024 December 31, 2023 (Dollars in millions and shares in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,580 2,234 Accounts receivable, less allowance of $ 67 and $ 67 1,322 1,318 Other 1,033 1,223 Total

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) References in the Notes to (i) "Lumen Technologies" or "Lumen," "we," "us," the "Company," and "our" refer to Lumen Technologies, Inc. and its consolidated subsidiaries and (ii) "Level 3" refer to Level 3 Parent, LLC and its predecessor, Level 3 Communications, Inc., which we acquired on November 1, 2017. (1) Background General We are a facilities-based technology and communications company that provides a broad array of integrated products and services to our domestic and global business customers and our domestic mass markets customers. We operate one of the world's most interconnected networks. Our platform empowers our customers to swiftly adjust digital programs to meet immediate demands, create efficiencies, accelerate market access and reduce costs, which allows our customers to rapidly evolve their IT programs to address dynamic changes. Our specific products and services are detailed in Note 3—Revenue Recognition. During 2022 and 2023, we divested components of our business, referenced herein as (i) the Europe, Middle East and Africa ("EMEA") business, divested November 1, 2023, (ii) the incumbent local exchange ("ILEC") business conducted in 20 Midwestern and Southeastern states, divested October 3, 2022 and (iii) the Latin American business, divested August 1, 2022. Please refer to Note 2—Divestitures of the Latin American, ILEC and EMEA Businesses our Annual Report on Form 10-K for the year ended December 31, 2023 for more information on these divestitures. As we determined that none of these divestitures represented a strategic shift for Lumen, they did not meet the criteria to be treated as discontinued operations and we continued to report our operating results for all three of the divested businesses in our consolidated operating results through their respective disposal dates. Basis of Presentation Our consolidated balance sheet as of December 31, 2023, which was derived from our

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View this 10-Q filing on SEC EDGAR