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QWEST COMMUNICATIONS INTERNATIONAL INC.
QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
(Unaudited)
| 2005 | 2004 | 2003 | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
Operating revenue | $ | 3,470 | $ | 3,449 | $ | 3,437 | $ | 3,449 | $ | 3,442 | $ | 3,481 | $ | 3,498 | $ | 3,570 | $ | 3,596 | $ | 3,624 | |||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||||||||||||
Facility costs | 682 | 677 | 650 | 748 | 681 | 662 | 704 | 1,137 | 688 | 702 | |||||||||||||||||||||||
Network expenses | 59 | 66 | 66 | 73 | 66 | 57 | 82 | 81 | 70 | 68 | |||||||||||||||||||||||
Employee-related costs | 388 | 410 | 390 | 429 | 437 | 450 | 464 | 468 | 439 | 433 | |||||||||||||||||||||||
Other non-employee related costs | 305 | 286 | 296 | 298 | 302 | 285 | 293 | 276 | 278 | 272 | |||||||||||||||||||||||
Total cost of sales | 1,434 | 1,439 | 1,402 | 1,548 | 1,486 | 1,454 | 1,543 | 1,962 | 1,475 | 1,475 | |||||||||||||||||||||||
Selling, general and administrative: | |||||||||||||||||||||||||||||||||
Property and other taxes | 111 | 99 | 78 | 112 | 115 | 81 | 97 | 114 | 115 | 126 | |||||||||||||||||||||||
Bad debt | 53 | 57 | 49 | 39 | 13 | 93 | 61 | 70 | 72 | 100 | |||||||||||||||||||||||
Restructuring and severance related costs | (1 | ) | 15 | 53 | 2 | 127 | 15 | 46 | 37 | 16 | 13 | ||||||||||||||||||||||
Employee-related costs | 410 | 407 | 413 | 413 | 434 | 469 | 415 | 429 | 472 | 485 | |||||||||||||||||||||||
Other non-employee related costs | 472 | 458 | 477 | 695 | 797 | 496 | 629 | 455 | 480 | 458 | |||||||||||||||||||||||
Total Selling, general and administrative | 1,045 | 1,036 | 1,070 | 1,261 | 1,486 | 1,154 | 1,248 | 1,105 | 1,155 | 1,182 | |||||||||||||||||||||||
Depreciation and amortization | 765 | 774 | 783 | 779 | 784 | 777 | 798 | 796 | 789 | 784 | |||||||||||||||||||||||
Impairments and other | — | — | 36 | 34 | 43 | — | — | 230 | — | — | |||||||||||||||||||||||
Total operating expenses | 3,244 | 3,249 | 3,291 | 3,622 | 3,799 | 3,385 | 3,589 | 4,093 | 3,419 | 3,441 | |||||||||||||||||||||||
Operating income (loss) | 226 | 200 | 146 | (173 | ) | (357 | ) | 96 | (91 | ) | (523 | ) | 177 | 183 | |||||||||||||||||||
Other expense (income) | |||||||||||||||||||||||||||||||||
Interest expense—net | 380 | 381 | 366 | 374 | 394 | 397 | 436 | 437 | 444 | 440 | |||||||||||||||||||||||
Other expense (income)—net | 13 | (242 | ) | (54 | ) | 40 | (111 | ) | 12 | (37 | ) | (18 | ) | (63 | ) | (61 | ) | ||||||||||||||||
Total other expense (income) | 393 | 139 | 312 | 414 | 283 | 409 | 399 | 419 | 381 | 379 | |||||||||||||||||||||||
Income tax benefit (expense) | 3 | (4 | ) | 27 | 18 | (136 | ) | 3 | 108 | 256 | 79 | 76 | |||||||||||||||||||||
Income (loss) from continuing operations | (164 | ) | 57 | (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) | $ | (164 | ) | $ | 57 | $ | (139 | ) | $ | (569 | ) | $ | (776 | ) | $ | (310 | ) | $ | (407 | ) | $ | 1,831 | $ | (64 | ) | $ | 152 | ||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) (Unaudited)