Exhibit 99.1
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to consolidated financial statement captions and additional disclosures resulting from the change in accounting policy (including certain USF fees) and customer and cost assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
Operating revenue, as reported | $ | 5,647 | 5,578 | 5,606 | 5,570 | 22,401 | 23,443 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (220 | ) | (203 | ) | (256 | ) | (264 | ) | (943 | ) | (863 | ) | ||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating revenue, as adjusted | $ | 5,427 | 5,375 | 5,350 | 5,306 | 21,458 | 22,580 | |||||||||||||||||
Revenue from contracts with customers, as reported | $ | 5,289 | 5,222 | 5,251 | 4,686 | 20,448 | 21,905 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (220 | ) | (203 | ) | (256 | ) | (264 | ) | (943 | ) | (863 | ) | ||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Revenue from contracts with customers, as adjusted | $ | 5,069 | 5,019 | 4,995 | 4,422 | 19,505 | 21,042 | |||||||||||||||||
Cost of services and products, as reported | $ | 2,520 | 2,446 | 2,590 | 2,521 | 10,077 | 10,862 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (220 | ) | (203 | ) | (256 | ) | (264 | ) | (943 | ) | (863 | ) | ||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Cost of services and products, as adjusted | $ | 2,300 | 2,243 | 2,334 | 2,257 | 9,134 | 9,999 | |||||||||||||||||
Operating expenses, as reported | $ | 11,146 | 4,602 | 4,656 | 4,723 | 25,127 | 22,873 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (220 | ) | (203 | ) | (256 | ) | (264 | ) | (943 | ) | (863 | ) | ||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating expenses, as adjusted | $ | 10,926 | 4,399 | 4,400 | 4,459 | 24,184 | 22,010 | |||||||||||||||||
Adjusted EBITDA margin, as reported | 39.5 | % | 39.7 | % | 39.7 | % | 37.8 | % | 39.2 | % | 36.7 | % | ||||||||||||
Adjusted EBITDA margin, as adjusted | 41.1 | % | 41.2 | % | 41.6 | % | 39.7 | % | 40.9 | % | 38.1 | % |
The change in accounting policy and customer and cost assignment changes had no impact on Consolidated Operating Income (Loss), Net Income (Loss), Earnings (Loss) per Share, or Adjusted EBITDA.
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment revenue resulting from the change in accounting policy (including certain USF fees) and customer assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||||
By Segment | ||||||||||||||||||||||||||
International and Global Accounts | Reported | $ | 891 | 902 | 899 | 904 | 3,596 | 3,653 | ||||||||||||||||||
Change in accounting policy | (31 | ) | (28 | ) | (35 | ) | (37 | ) | (131 | ) | (121 | ) | ||||||||||||||
Customer assignment changes | 3 | 3 | 2 | 3 | 11 | 11 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 863 | 877 | 866 | 870 | 3,476 | 3,543 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Enterprise | Reported | $ | 1,523 | 1,505 | 1,550 | 1,555 | 6,133 | 6,133 | ||||||||||||||||||
Change in accounting policy | (105 | ) | (99 | ) | (125 | ) | (129 | ) | (458 | ) | (371 | ) | ||||||||||||||
Customer assignment changes | 7 | 3 | 3 | 8 | 21 | 3 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 1,425 | 1,409 | 1,428 | 1,434 | 5,696 | 5,765 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Small and Medium Business | Reported | $ | 755 | 736 | 734 | 731 | 2,956 | 3,144 | ||||||||||||||||||
Change in accounting policy | (44 | ) | (40 | ) | (52 | ) | (53 | ) | (189 | ) | (201 | ) | ||||||||||||||
Customer assignment changes | (11 | ) | (8 | ) | (8 | ) | (13 | ) | (40 | ) | (25 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 700 | 688 | 674 | 665 | 2,727 | 2,918 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Wholesale | Reported | $ | 1,037 | 1,018 | 1,025 | 994 | 4,074 | 4,397 | ||||||||||||||||||
Change in accounting policy | (11 | ) | (8 | ) | (12 | ) | (13 | ) | (44 | ) | (49 | ) | ||||||||||||||
Customer assignment changes | 4 | 2 | 4 | 2 | 12 | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 1,030 | 1,012 | 1,017 | 983 | 4,042 | 4,360 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Consumer | Reported | $ | 1,441 | 1,417 | 1,398 | 1,386 | 5,642 | 6,116 | ||||||||||||||||||
Change in accounting policy | (29 | ) | (28 | ) | (32 | ) | (32 | ) | (121 | ) | (121 | ) | ||||||||||||||
Customer assignment changes | (3 | ) | 0 | (1 | ) | 0 | (4 | ) | (1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 1,409 | 1,389 | 1,365 | 1,354 | 5,517 | 5,994 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Reported | $ | 5,647 | 5,578 | 5,606 | 5,570 | 22,401 | 23,443 | ||||||||||||||||||
Change in accounting policy | (220 | ) | (203 | ) | (256 | ) | (264 | ) | (943 | ) | (863 | ) | ||||||||||||||
Customer assignment changes | 0 | 0 | 0 | 0 | 0 | (0 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 5,427 | 5,375 | 5,350 | 5,306 | 21,458 | 22,580 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment revenue by product and service offering resulting from the change in accounting policy (including certain USF fees) and customer assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
By Segment | ||||||||||||||||||||||||
International and Global Accounts | ||||||||||||||||||||||||
IP and Data Services Reported | $ | 420 | 420 | 417 | 419 | 1,676 | 1,728 | |||||||||||||||||
Change in accounting policy | (12 | ) | (11 | ) | (14 | ) | (14 | ) | (51 | ) | (47 | ) | ||||||||||||
Customer assignment changes | 0 | 0 | 1 | 1 | 2 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IP and Data Services Adjusted/New | 408 | 409 | 404 | 406 | 1,627 | 1,682 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Reported | 320 | 333 | 331 | 334 | 1,318 | 1,276 | ||||||||||||||||||
Change in accounting policy | (12 | ) | (11 | ) | (15 | ) | (15 | ) | (53 | ) | (47 | ) | ||||||||||||
Customer assignment changes | 1 | 1 | 1 | 0 | 3 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Adjusted/New | 309 | 323 | 317 | 319 | 1,268 | 1,230 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Reported | 94 | 94 | 96 | 93 | 377 | 387 | ||||||||||||||||||
Change in accounting policy | (7 | ) | (6 | ) | (6 | ) | (8 | ) | (27 | ) | (27 | ) | ||||||||||||
Customer assignment changes | 2 | 1 | (1 | ) | 2 | 4 | 5 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Adjusted/New | 89 | 89 | 89 | 87 | 354 | 365 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Reported | 57 | 55 | 55 | 58 | 225 | 262 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | 0 | 1 | 1 | 0 | 2 | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Adjusted/New | 57 | 56 | 56 | 58 | 227 | 266 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Reported | 891 | 902 | 899 | 904 | 3,596 | 3,653 | ||||||||||||||||||
Change in accounting policy | (31 | ) | (28 | ) | (35 | ) | (37 | ) | (131 | ) | (121 | ) | ||||||||||||
Customer assignment changes | 3 | 3 | 2 | 3 | 11 | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Adjusted/New | $ | 863 | 877 | 866 | 870 | 3,476 | 3,543 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment revenue by product and service offering resulting from the change in accounting policy (including certain USF fees) and customer assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
By Segment | ||||||||||||||||||||||||
Enterprise | ||||||||||||||||||||||||
IP and Data Services Reported | $ | 688 | 681 | 691 | 703 | 2,763 | 2,673 | |||||||||||||||||
Change in accounting policy | (52 | ) | (48 | ) | (61 | ) | (62 | ) | (223 | ) | (189 | ) | ||||||||||||
Customer assignment changes | 2 | (1 | ) | 1 | (4 | ) | (2 | ) | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IP and Data Services Adjusted/New | 638 | 632 | 631 | 637 | 2,538 | 2,485 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Reported | 364 | 368 | 405 | 408 | 1,545 | 1,550 | ||||||||||||||||||
Change in accounting policy | (18 | ) | (17 | ) | (22 | ) | (24 | ) | (81 | ) | (63 | ) | ||||||||||||
Customer assignment changes | 1 | 3 | 1 | 10 | 15 | (3 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Adjusted/New | 347 | 354 | 384 | 394 | 1,479 | 1,484 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Reported | 397 | 390 | 395 | 385 | 1,567 | 1,607 | ||||||||||||||||||
Change in accounting policy | (35 | ) | (34 | ) | (42 | ) | (43 | ) | (154 | ) | (119 | ) | ||||||||||||
Customer assignment changes | 4 | 2 | 1 | 3 | 10 | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Adjusted/New | 366 | 358 | 354 | 345 | 1,423 | 1,495 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Reported | 74 | 66 | 59 | 59 | 258 | 303 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | 0 | (1 | ) | 0 | (1 | ) | (2 | ) | (2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Adjusted/New | 74 | 65 | 59 | 58 | 256 | 301 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Reported | 1,523 | 1,505 | 1,550 | 1,555 | 6,133 | 6,133 | ||||||||||||||||||
Change in accounting policy | (105 | ) | (99 | ) | (125 | ) | (129 | ) | (458 | ) | (371 | ) | ||||||||||||
Customer assignment changes | 7 | 3 | 3 | 8 | 21 | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Adjusted/New | $ | 1,425 | 1,409 | 1,428 | 1,434 | 5,696 | 5,765 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment revenue by product and service offering resulting from the change in accounting policy (including certain USF fees) and customer assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
By Segment | ||||||||||||||||||||||||
Small and Medium Business | ||||||||||||||||||||||||
IP and Data Services Reported | $ | 300 | 290 | 295 | 299 | 1,184 | 1,178 | |||||||||||||||||
Change in accounting policy | (21 | ) | (18 | ) | (24 | ) | (24 | ) | (87 | ) | (91 | ) | ||||||||||||
Customer assignment changes | (3 | ) | (1 | ) | (1 | ) | (1 | ) | (6 | ) | (9 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IP and Data Services Adjusted/New | 276 | 271 | 270 | 274 | 1,091 | 1,078 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Reported | 107 | 106 | 106 | 101 | 420 | 471 | ||||||||||||||||||
Change in accounting policy | (6 | ) | (6 | ) | (8 | ) | (8 | ) | (28 | ) | (30 | ) | ||||||||||||
Customer assignment changes | (6 | ) | (6 | ) | (5 | ) | (10 | ) | (27 | ) | (17 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Adjusted/New | 95 | 94 | 93 | 83 | 365 | 424 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Reported | 336 | 328 | 322 | 320 | 1,306 | 1,443 | ||||||||||||||||||
Change in accounting policy | (17 | ) | (16 | ) | (20 | ) | (21 | ) | (74 | ) | (80 | ) | ||||||||||||
Customer assignment changes | (2 | ) | 0 | (2 | ) | (2 | ) | (6 | ) | 3 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Adjusted/New | 317 | 312 | 300 | 297 | 1,226 | 1,366 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Reported | 12 | 12 | 11 | 11 | 46 | 52 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | 0 | (1 | ) | 0 | 0 | (1 | ) | (2 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Adjusted/New | 12 | 11 | 11 | 11 | 45 | 50 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Reported | 755 | 736 | 734 | 731 | 2,956 | 3,144 | ||||||||||||||||||
Change in accounting policy | (44 | ) | (40 | ) | (52 | ) | (53 | ) | (189 | ) | (201 | ) | ||||||||||||
Customer assignment changes | (11 | ) | (8 | ) | (8 | ) | (13 | ) | (40 | ) | (25 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Adjusted/New | $ | 700 | 688 | 674 | 665 | 2,727 | 2,918 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment revenue by product and service offering resulting from the change in accounting policy (including certain USF fees) and customer assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
By Segment | ||||||||||||||||||||||||
Wholesale | ||||||||||||||||||||||||
IP and Data Services Reported | $ | 341 | 339 | 357 | 340 | 1,377 | 1,382 | |||||||||||||||||
Change in accounting policy | (5 | ) | (3 | ) | (4 | ) | (5 | ) | (17 | ) | (17 | ) | ||||||||||||
Customer assignment changes | 2 | 1 | 0 | 2 | 5 | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IP and Data Services Adjusted/New | 338 | 337 | 353 | 337 | 1,365 | 1,369 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Reported | 499 | 484 | 467 | 470 | 1,920 | 2,136 | ||||||||||||||||||
Change in accounting policy | (4 | ) | (3 | ) | (5 | ) | (5 | ) | (17 | ) | (23 | ) | ||||||||||||
Customer assignment changes | 0 | 1 | 2 | 1 | 4 | 5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Transport and Infrastructure Adjusted/New | 495 | 482 | 464 | 466 | 1,907 | 2,118 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Reported | 196 | 193 | 200 | 182 | 771 | 872 | ||||||||||||||||||
Change in accounting policy | (2 | ) | (2 | ) | (3 | ) | (3 | ) | (10 | ) | (9 | ) | ||||||||||||
Customer assignment changes | 1 | 0 | 1 | 0 | 2 | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice and Collaboration Adjusted/New | 195 | 191 | 198 | 179 | 763 | 865 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Reported | 1 | 2 | 1 | 2 | 6 | 7 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | 1 | 0 | 1 | (1 | ) | 1 | 1 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
IT and Managed Services Adjusted/New | 2 | 2 | 2 | 1 | 7 | 8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Reported | 1,037 | 1,018 | 1,025 | 994 | 4,074 | 4,397 | ||||||||||||||||||
Change in accounting policy | (11 | ) | (8 | ) | (12 | ) | (13 | ) | (44 | ) | (49 | ) | ||||||||||||
Customer assignment changes | 4 | 2 | 4 | 2 | 12 | 12 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Adjusted/New | $ | 1,030 | 1,012 | 1,017 | 983 | 4,042 | 4,360 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment revenue by product and service offering resulting from the change in accounting policy (including certain USF fees) and customer assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
By Segment | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Broadband Reported | $ | 722 | 718 | 718 | 718 | 2,876 | 2,822 | |||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | 0 | 0 | 0 | 0 | 0 | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Broadband Adjusted/New | 722 | 718 | 718 | 718 | 2,876 | 2,824 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice Reported | 489 | 477 | 462 | 453 | 1,881 | 2,173 | ||||||||||||||||||
Change in accounting policy | (29 | ) | (28 | ) | (32 | ) | (32 | ) | (121 | ) | (121 | ) | ||||||||||||
Customer assignment changes | 17 | 18 | 23 | 19 | 77 | 75 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Voice Adjusted/New | 477 | 467 | 453 | 440 | 1,837 | 2,127 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Regulatory Reported | 159 | 158 | 157 | 160 | 634 | 729 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | (2 | ) | (1 | ) | 0 | 1 | (2 | ) | (2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Regulatory Adjusted/New | 157 | 157 | 157 | 161 | 632 | 727 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other Reported | 71 | 64 | 61 | 55 | 251 | 392 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Customer assignment changes | (18 | ) | (17 | ) | (24 | ) | (20 | ) | (79 | ) | (76 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other Adjusted/New | 53 | 47 | 37 | 35 | 172 | 316 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Reported | 1,441 | 1,417 | 1,398 | 1,386 | 5,642 | 6,116 | ||||||||||||||||||
Change in accounting policy | (29 | ) | (28 | ) | (32 | ) | (32 | ) | (121 | ) | (121 | ) | ||||||||||||
Customer assignment changes | (3 | ) | 0 | (1 | ) | 0 | (4 | ) | (1 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Adjusted/New | $ | 1,409 | 1,389 | 1,365 | 1,354 | 5,517 | 5,994 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment cost of services and products resulting from the change in accounting policy (including certain USF fees) and customer and cost assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||||
By Segment | ||||||||||||||||||||||||||
International and Global Accounts | Reported | $ | 259 | 258 | 269 | 258 | 1,044 | 1,056 | ||||||||||||||||||
Change in accounting policy | (31 | ) | (28 | ) | (35 | ) | (37 | ) | (131 | ) | (121 | ) | ||||||||||||||
Customer and cost assignment changes | 3 | 2 | 1 | 1 | 7 | 5 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 231 | 232 | 235 | 222 | 920 | 940 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Enterprise | Reported | $ | 496 | 497 | 544 | 551 | 2,088 | 2,038 | ||||||||||||||||||
Change in accounting policy | (105 | ) | (99 | ) | (125 | ) | (129 | ) | (458 | ) | (371 | ) | ||||||||||||||
Customer and cost assignment changes | 37 | 36 | 32 | 33 | 138 | 177 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 428 | 434 | 451 | 455 | 1,768 | 1,844 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Small and Medium Business | Reported | $ | 153 | 147 | 155 | 151 | 606 | 614 | ||||||||||||||||||
Change in accounting policy | (44 | ) | (40 | ) | (52 | ) | (53 | ) | (189 | ) | (201 | ) | ||||||||||||||
Customer and cost assignment changes | (4 | ) | (5 | ) | (4 | ) | (5 | ) | (18 | ) | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 105 | 102 | 99 | 93 | 399 | 416 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Wholesale | Reported | $ | 141 | 145 | 144 | 137 | 567 | 645 | ||||||||||||||||||
Change in accounting policy | (11 | ) | (8 | ) | (12 | ) | (13 | ) | (44 | ) | (49 | ) | ||||||||||||||
Customer and cost assignment changes | 4 | 3 | 2 | 3 | 12 | (29 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 134 | 140 | 134 | 127 | 535 | 567 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Consumer | Reported | $ | 87 | 77 | 80 | 69 | 313 | 500 | ||||||||||||||||||
Change in accounting policy | (29 | ) | (28 | ) | (32 | ) | (32 | ) | (121 | ) | (121 | ) | ||||||||||||||
Customer and cost assignment changes | 0 | 2 | 2 | 1 | 5 | (23 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 58 | 51 | 50 | 38 | 197 | 356 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Operations and Other | Reported | $ | 1,384 | 1,322 | 1,398 | 1,355 | 5,459 | 6,009 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Customer and cost assignment changes | (40 | ) | (38 | ) | (33 | ) | (33 | ) | (144 | ) | (133 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 1,344 | 1,284 | 1,365 | 1,322 | 5,315 | 5,876 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Reported | $ | 2,520 | 2,446 | 2,590 | 2,521 | 10,077 | 10,862 | ||||||||||||||||||
Change in accounting policy | (220 | ) | (203 | ) | (256 | ) | (264 | ) | (943 | ) | (863 | ) | ||||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 2,300 | 2,243 | 2,334 | 2,257 | 9,134 | 9,999 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment selling, general and administrative expense resulting from the customer and cost assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||||
By Segment | ||||||||||||||||||||||||||
International and Global Accounts | Reported | $ | 68 | 68 | 65 | 65 | 266 | 256 | ||||||||||||||||||
Customer and cost assignment changes | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (5 | ) | (7 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 67 | 67 | 64 | 63 | 261 | 249 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Enterprise | Reported | $ | 149 | 143 | 134 | 129 | 555 | 573 | ||||||||||||||||||
Customer and cost assignment changes | (1 | ) | (2 | ) | (2 | ) | (5 | ) | (10 | ) | (6 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 148 | 141 | 132 | 124 | 545 | 567 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Small and Medium Business | Reported | $ | 132 | 120 | 112 | 116 | 480 | 517 | ||||||||||||||||||
Customer and cost assignment changes | (8 | ) | (5 | ) | (4 | ) | (4 | ) | (21 | ) | (27 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 124 | 115 | 108 | 112 | 459 | 490 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Wholesale | Reported | $ | 20 | 21 | 21 | 18 | 80 | 86 | ||||||||||||||||||
Customer and cost assignment changes | (6 | ) | (6 | ) | (6 | ) | (4 | ) | (22 | ) | (24 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 14 | 15 | 15 | 14 | 58 | 62 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Consumer | Reported | $ | 109 | 110 | 102 | 94 | 415 | 511 | ||||||||||||||||||
Customer and cost assignment changes | 35 | 27 | 20 | 24 | 106 | 106 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 144 | 137 | 122 | 118 | 521 | 617 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Operations and Other | Reported | $ | 454 | 498 | 397 | 570 | 1,919 | 2,222 | ||||||||||||||||||
Customer and cost assignment changes | (19 | ) | (13 | ) | (7 | ) | (9 | ) | (48 | ) | (42 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 435 | 485 | 390 | 561 | 1,871 | 2,180 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Reported | $ | 932 | 960 | 831 | 992 | 3,715 | 4,165 | ||||||||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 932 | 960 | 831 | 992 | 3,715 | 4,165 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CenturyLink, Inc.
(Unaudited)
The following table reflects the retrospective impacts to segment Adjusted EBITDA resulting from the customer and cost assignment changes:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||||
By Segment | ||||||||||||||||||||||||||
International and Global Accounts | Reported | $ | 564 | 576 | 565 | 581 | 2,286 | 2,341 | ||||||||||||||||||
Customer and cost assignment changes | 1 | 2 | 2 | 4 | 9 | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 565 | 578 | 567 | 585 | 2,295 | 2,353 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Enterprise | Reported | $ | 878 | 865 | 872 | 875 | 3,490 | 3,522 | ||||||||||||||||||
Customer and cost assignment changes | (29 | ) | (31 | ) | (27 | ) | (20 | ) | (107 | ) | (168 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 849 | 834 | 845 | 855 | 3,383 | 3,354 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Small and Medium Business | Reported | $ | 470 | 469 | 467 | 464 | 1,870 | 2,013 | ||||||||||||||||||
Customer and cost assignment changes | 1 | 2 | 0 | (4 | ) | (1 | ) | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 471 | 471 | 467 | 460 | 1,869 | 2,013 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Wholesale | Reported | $ | 876 | 852 | 860 | 839 | 3,427 | 3,666 | ||||||||||||||||||
Customer and cost assignment changes | 6 | 5 | 8 | 3 | 22 | 66 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 882 | 857 | 868 | 842 | 3,449 | 3,732 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Consumer | Reported | $ | 1,245 | 1,230 | 1,216 | 1,223 | 4,914 | 5,105 | ||||||||||||||||||
Customer and cost assignment changes | (38 | ) | (29 | ) | (23 | ) | (25 | ) | (115 | ) | (83 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 1,207 | 1,201 | 1,193 | 1,198 | 4,799 | 5,022 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Operations and Other | Reported | ($ | 1,805 | ) | (1,777 | ) | (1,757 | ) | (1,877 | (7,216 | ) | (8,045 | ) | |||||||||||||
Customer and cost assignment changes | 59 | 51 | 40 | 42 | 192 | 173 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | ($ | 1,746 | ) | (1,726 | ) | (1,717 | ) | (1,835 | ) | (7,024 | ) | (7,872 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | Reported | $ | 2,228 | 2,215 | 2,223 | 2,105 | 8,771 | 8,602 | ||||||||||||||||||
Customer and cost assignment changes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted/New | $ | 2,228 | 2,215 | 2,223 | 2,105 | 8,771 | 8,602 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|