Exhibit 99.1
Level 3 Parent, LLC
(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 | $ | 2,046 | 2,014 | 2,064 | 2,061 | 8,185 | 8,220 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (96 | ) | (88 | ) | (112 | ) | (116 | ) | (412 | ) | (381 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Operating revenue, as adjusted | $ | 1,950 | 1,926 | 1,952 | 1,945 | 7,773 | 7,839 | |||||||||||||||||
Revenue from contracts with customers, as reported | $ | 1,996 | 1,925 | 1,970 | 1,401 | 7,292 | 7,921 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (96 | ) | (88 | ) | (112 | ) | (116 | ) | (412 | ) | (381 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Revenue from contracts with customers, as adjusted | $ | 1,900 | 1,837 | 1,858 | 1,285 | 6,880 | 7,540 | |||||||||||||||||
Cost of services and products, as reported | $ | 967 | 919 | 960 | 953 | 3,799 | 3,937 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (96 | ) | (88 | ) | (112 | ) | (116 | ) | (412 | ) | (381 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Cost of services and products, as adjusted | $ | 871 | 831 | 848 | 837 | 3,387 | 3,556 | |||||||||||||||||
Operating expenses, as reported | $ | 5,439 | 1,742 | 1,755 | 1,776 | 10,712 | 7,252 | |||||||||||||||||
Reclassifications: | ||||||||||||||||||||||||
Change in accounting policy | (96 | ) | (88 | ) | (112 | ) | (116 | ) | (412 | ) | (381 | ) | ||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
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Operating expenses, as adjusted | $ | 5,343 | 1,654 | 1,643 | 1,660 | 10,300 | 6,871 |
The change in accounting policy and product reclassifications had no impact on Consolidated Operating Income (Loss) or Net Income (Loss).
Level 3 Parent, LLC
(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 | ||||||||||||||||||||
Reported | $ | 979 | 965 | 972 | 972 | 3,888 | 3,945 | |||||||||||||||||||
IP and Data Services | Change in accounting policy | (57 | ) | (50 | ) | (63 | ) | (64 | ) | (234 | ) | (217 | ) | |||||||||||||
Product reclassifications | 1 | 0 | 1 | (1 | ) | 1 | 0 | |||||||||||||||||||
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Adjusted/New | $ | 923 | 915 | 910 | 907 | 3,655 | 3,728 | |||||||||||||||||||
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Transport and Infrastructure | Reported | $ | 658 | 655 | 668 | 681 | 2,662 | 2,701 | ||||||||||||||||||
Change in accounting policy | (27 | ) | (25 | ) | (33 | ) | (35 | ) | (120 | ) | (109 | ) | ||||||||||||||
Product reclassifications | (1 | ) | 1 | 1 | 1 | 2 | (1 | ) | ||||||||||||||||||
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Adjusted/New | $ | 630 | 631 | 636 | 647 | 2,544 | 2,591 | |||||||||||||||||||
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Voice and Collaboration | Reported | $ | 352 | 355 | 379 | 357 | 1,443 | 1,464 | ||||||||||||||||||
Change in accounting policy | (12 | ) | (13 | ) | (16 | ) | (17 | ) | (58 | ) | (55 | ) | ||||||||||||||
Product reclassifications | 0 | (1 | ) | (1 | ) | 2 | 0 | 4 | ||||||||||||||||||
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Adjusted/New | $ | 340 | 341 | 362 | 342 | 1,385 | 1,413 | |||||||||||||||||||
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Other | Reported | $ | 2 | 1 | 4 | 5 | 12 | 3 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Product reclassifications | 0 | 0 | (1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||||||||||
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Adjusted/New | $ | 2 | 1 | 3 | 3 | 9 | 0 | |||||||||||||||||||
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Affiliate Services | Reported | $ | 55 | 38 | 41 | 46 | 180 | 107 | ||||||||||||||||||
Change in accounting policy | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 55 | 38 | 41 | 46 | 180 | 107 | |||||||||||||||||||
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Total | Reported | $ | 2,046 | 2,014 | 2,064 | 2,061 | 8,185 | 8,220 | ||||||||||||||||||
Change in accounting policy | (96 | ) | (88 | ) | (112 | ) | (116 | ) | (412 | ) | (381 | ) | ||||||||||||||
Product reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
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Adjusted/New | $ | 1,950 | 1,926 | 1,952 | 1,945 | 7,773 | 7,839 | |||||||||||||||||||
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