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EXHIBIT 99.2
The following condensed operating financial data reflects our quarterly operating results for the last eight consecutive quarters. We made certain reclassifications to prior balances to conform to the current presentation.
QWEST COMMUNICATIONS INTERNATIONAL INC.
QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| 2004 | 2003 | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||
Operating revenue | $ | 3,437 | $ | 3,449 | $ | 3,442 | $ | 3,481 | $ | 3,498 | $ | 3,570 | $ | 3,596 | $ | 3,624 | |||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||||||
Facility costs | 688 | 771 | 721 | 683 | 731 | 1,162 | 712 | 723 | |||||||||||||||||||
Network costs | 94 | 110 | 95 | 78 | 103 | 108 | 96 | 90 | |||||||||||||||||||
Employee-related | 397 | 437 | 443 | 457 | 459 | 466 | 442 | 447 | |||||||||||||||||||
Other non-employee costs | 223 | 230 | 227 | 236 | 250 | 226 | 225 | 215 | |||||||||||||||||||
Total costs of sale | 1,402 | 1,548 | 1,486 | 1,454 | 1,543 | 1,962 | 1,475 | 1,475 | |||||||||||||||||||
SG&A: | |||||||||||||||||||||||||||
Property and other taxes | 78 | 112 | 115 | 81 | 97 | 114 | 115 | 126 | |||||||||||||||||||
Bad debt | 49 | 39 | 13 | 93 | 61 | 70 | 72 | 100 | |||||||||||||||||||
Restructuring | 54 | 2 | 127 | 15 | 47 | 37 | 16 | 13 | |||||||||||||||||||
Employee-related | 408 | 406 | 428 | 463 | 409 | 423 | 466 | 478 | |||||||||||||||||||
Other non-employee costs | 481 | 702 | 803 | 502 | 634 | 461 | 486 | 465 | |||||||||||||||||||
Total SG&A | 1,070 | 1,261 | 1,486 | 1,154 | 1,248 | 1,105 | 1,155 | 1,182 | |||||||||||||||||||
Depreciation & amortization | 783 | 779 | 784 | 777 | 798 | 796 | 789 | 784 | |||||||||||||||||||
Impairments & other | 36 | 34 | 43 | — | — | 230 | — | — | |||||||||||||||||||
Total operating expenses | 3,291 | 3,622 | 3,799 | 3,385 | 3,589 | 4,093 | 3,419 | 3,441 | |||||||||||||||||||
Operating income (loss) | 146 | (173 | ) | (357 | ) | 96 | (91 | ) | (523 | ) | 177 | 183 | |||||||||||||||
Other expense (income): | |||||||||||||||||||||||||||
Interest expense—net | 366 | 374 | 394 | 397 | 436 | 437 | 444 | 440 | |||||||||||||||||||
Other—net | (54 | ) | 40 | (111 | ) | 12 | (37 | ) | (18 | ) | (63 | ) | (61 | ) | |||||||||||||
Total other expense (income) | 312 | 414 | 283 | 409 | 399 | 419 | 381 | 379 | |||||||||||||||||||
Income tax benefit (expense) | 27 | 18 | (136 | ) | 3 | 108 | 256 | 79 | 76 | ||||||||||||||||||
Loss from continuing operations | (139 | ) | (569 | ) | (776 | ) | (310 | ) | (382 | ) | (686 | ) | (125 | ) | (120 | ) | |||||||||||
Discontinued operations—net | — | — | — | — | (25 | ) | 2,517 | 61 | 66 | ||||||||||||||||||
Cumulative effect of accounting changes—net | — | — | — | — | — | — | — | 206 | |||||||||||||||||||
Net income (loss) | $ | (139 | ) | $ | (569 | ) | $ | (776 | ) | $ | (310 | ) | $ | (407 | ) | $ | 1,831 | $ | (64 | ) | $ | 152 | |||||
QWEST COMMUNICATIONS INTERNATIONAL INC. QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)