Exhibit 99.1
Qwest Corporation
(Unaudited)
The following table reflects the retrospective impacts to consolidated financial statement captions and additional disclosures resulting from the change in accounting policy (including USF fees) and product reclassifications:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||
Operating revenue, as reported | $ | 2,055 | 2,051 | 2,039 | 2,012 | 8,157 | 8,493 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (25 | ) | (23 | ) | (28 | ) | (29 | ) | (105 | ) | (98 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Operating revenue, as adjusted | $ | 2,030 | 2,028 | 2,011 | 1,983 | 8,052 | 8,395 | |||||||||||||||||
Revenue from contracts with customers, as reported | $ | 1,928 | 1,926 | 1,916 | 1,890 | 7,660 | 7,962 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (25 | ) | (23 | ) | (28 | ) | (29 | ) | (105 | ) | (98 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Revenue from contracts with customers, as adjusted | $ | 1,903 | 1,903 | 1,888 | 1,861 | 7,555 | 7,864 | |||||||||||||||||
Cost of services and products, as reported | $ | 607 | 588 | 630 | 613 | 2,438 | 2,767 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (25 | ) | (23 | ) | (28 | ) | (29 | ) | (105 | ) | (98 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Cost of services and products, as adjusted | $ | 582 | 565 | 602 | 584 | 2,333 | 2,669 | |||||||||||||||||
Operating expenses, as reported | $ | 1,295 | 1,301 | 1,291 | 1,386 | 5,273 | 5,833 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (25 | ) | (23 | ) | (28 | ) | (29 | ) | (105 | ) | (98 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Operating expenses, as adjusted | $ | 1,270 | 1,278 | 1,263 | 1,357 | 5,168 | 5,735 |
The change in accounting policy and product reclassifications had no impact on Consolidated Operating Income (Loss) or Net Income (Loss).
Qwest Corporation
(Unaudited)
The following table reflects the retrospective impacts to revenue by product and service offering resulting from the change in accounting policy (including USF fees) and product reclassifications:
$ in millions | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 2019 | 2018 | ||||||||||||||||||||
IP and Data Services | Reported | $ | 147 | 151 | 169 | 157 | 624 | 615 | ||||||||||||||||||
Change in accounting policy | (8 | ) | (7 | ) | (8 | ) | (8 | ) | (31 | ) | (28 | ) | ||||||||||||||
Product reclassifications | 1 | 1 | 0 | 0 | 2 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 140 | 145 | 161 | 149 | 595 | 587 | |||||||||||||||||||
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Transport and Infrastructure | Reported | $ | 715 | 709 | 716 | 689 | 2,829 | 2,925 | ||||||||||||||||||
Change in accounting policy | (6 | ) | (6 | ) | (8 | ) | (8 | ) | (28 | ) | (25 | ) | ||||||||||||||
Product reclassifications | (8 | ) | (7 | ) | (5 | ) | (8 | ) | (28 | ) | (30 | ) | ||||||||||||||
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Adjusted/New | $ | 701 | 696 | 703 | 673 | 2,773 | 2,870 | |||||||||||||||||||
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Voice and Collaboration | Reported | $ | 422 | 423 | 405 | 389 | 1,639 | 1,798 | ||||||||||||||||||
Change in accounting policy | (11 | ) | (10 | ) | (12 | ) | (13 | ) | (46 | ) | (45 | ) | ||||||||||||||
Product reclassifications | 7 | 6 | 4 | 8 | 25 | 30 | ||||||||||||||||||||
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Adjusted/New | $ | 418 | 419 | 397 | 384 | 1,618 | 1,783 | |||||||||||||||||||
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IT and Managed Services | Reported | $ | 1 | 1 | 0 | 1 | 3 | 6 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Product reclassifications | 0 | 0 | 1 | 0 | 1 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 1 | 1 | 1 | 1 | 4 | 6 | |||||||||||||||||||
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Regulatory | Reported | $ | 48 | 47 | 48 | 46 | 189 | 214 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 48 | 47 | 48 | 46 | 189 | 214 | |||||||||||||||||||
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Affiliate Services | Reported | $ | 722 | 720 | 701 | 730 | 2,873 | 2,935 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 722 | 720 | 701 | 730 | 2,873 | 2,935 | |||||||||||||||||||
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Total | Reported | $ | 2,055 | $ | 2,051 | $ | 2,039 | $ | 2,012 | $ | 8,157 | 8,493 | ||||||||||||||
Change in accounting policy | (25 | ) | (23 | ) | (28 | ) | (29 | ) | (105 | ) | (98 | ) | ||||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 2,030 | 2,028 | 2,011 | 1,983 | 8,052 | 8,395 | |||||||||||||||||||
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