Lumen Technologies Files 10-Q for Q2 2024

Ticker: LUMN · Form: 10-Q · Filed: Aug 6, 2024 · CIK: 18926

Sentiment: neutral

Topics: 10-Q, telecommunications, financials

TL;DR

Lumen's Q2 2024 10-Q is in. Get the latest financials.

AI Summary

Lumen Technologies, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and provides financial updates. Key financial data and operational details are presented for the reporting period.

Why It Matters

This filing provides investors and analysts with Lumen's latest financial performance and operational status, crucial for understanding the company's trajectory in the telecommunications sector.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and market conditions can introduce varying levels of risk.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Lumen Technologies, Inc.?

Lumen Technologies, Inc. operates in the TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) sector, SIC code 4813.

What is the filing date of this 10-Q report?

This 10-Q report was filed on August 6, 2024.

What is the period covered by this 10-Q filing?

The report covers the period ending June 30, 2024.

What were Lumen Technologies' former names?

Lumen Technologies, Inc. was formerly known as CENTURYLINK, INC, CENTURYTEL INC, and CENTURY TELEPHONE ENTERPRISES INC.

In which state was Lumen Technologies incorporated?

Lumen Technologies, Inc. was incorporated in Louisiana (LA).

Filing Stats: 4,533 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-08-06 17:01:58

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements Consolidated Statements of Operations (Unaudited) 6 Consolidated Statements of Comprehensive (Loss) 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 67 Item 4.

Controls and Procedures

Controls and Procedures 67 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 68 Item 1A.

Risk Factors

Risk Factors 68 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69 Item 6. Exhibits 70 Signature 71 * 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions, except per share amounts, and shares in thousands) OPERATING REVENUE $ 3,268 3,661 6,558 7,399 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) 1,653 1,740 3,305 3,557 Selling, general and administrative 742 790 1,565 1,511 (Gain) loss on sale of business ( 5 ) 13 17 90 Depreciation and amortization 743 746 1,491 1,479 Goodwill impairment — 8,793 — 8,793 Total operating expenses 3,133 12,082 6,378 15,430 OPERATING INCOME (LOSS) 135 ( 8,421 ) 180 ( 8,031 ) OTHER (EXPENSE) INCOME Interest expense ( 373 ) ( 294 ) ( 664 ) ( 573 ) Net gain on early retirement of debt (Note 5) 3 9 278 618 Other income (expense), net 194 16 267 ( 24 ) Total other (expense) income, net ( 176 ) ( 269 ) ( 119 ) 21 (LOSS) INCOME BEFORE INCOME TAXES ( 41 ) ( 8,690 ) 61 ( 8,010 ) Income tax expense 8 46 53 215 NET (LOSS) INCOME ( 49 ) ( 8,736 ) 8 ( 8,225 ) BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE BASIC $ ( 0.05 ) ( 8.88 ) 0.01 ( 8.37 ) DILUTED $ ( 0.05 ) ( 8.88 ) 0.01 ( 8.37 ) WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING BASIC 987,239 983,453 986,047 982,505 DILUTED 987,239 983,453 987,224 982,505 See accompanying notes to consolidated financial statements. 6 Table of Contents LUMEN TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) NET (LOSS) INCOME $ ( 49 ) ( 8,736 ) 8 ( 8,225 ) OTHER COMPREHENSIVE INCOME: Items related to employee benefit plans: Change in net actuarial loss, net of $( 5 ), $( 5 ), $( 11 ) and $( 10 ) tax 16 16 34 31 Change in net prior service cost, net of $ 1 , $ 1 , $ 2 and $ 2 tax ( 2 ) ( 2 ) ( 5 ) ( 5 ) Foreign currency translation adjustmen

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) References in the Notes to "Lumen Technologies" or "Lumen," "we," "us," the "Company," and "our" refer to Lumen Technologies, Inc. and its consolidated subsidiaries. (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. Refer to Note 2—Divestitures of the Latin American, ILEC and EMEA Businesses in 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 audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in acco

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