Exhibit 99.1
(LOGO) Level 3 Communications, Inc.
1025 Eldorado Boulevard
Broomfield, Colorado 80021
www.Level3.com
NEWS RELEASE
FOR IMMEDIATE RELEASE
Level 3 Contacts:
Media: Josh Howell Investors: Robin Grey
720/888-2517 720/888-2518
Level 3 Reports Fourth Quarter and Full Year 2002 Results
Company Turns Operating Cash Flow Positive During Fourth Quarter
Balance Sheet Improved through $500 Million in Debt Reduction
and $285 Million in Asset Sales
Level 3 Closes Genuity Transaction
Company Expects to Turn Free Cash Flow Positive During the
Second Quarter of 2004
BROOMFIELD, CO, February 4, 2003 - Level 3 Communications, Inc. (Nasdaq:LVLT)
today announced its fourth quarter 2002 results. The net loss for the quarter
was $313 million, or $0.73 per share. Excluding certain one-time and
extraordinary items, the net loss for the quarter was $240 million, or $0.56 per
share, versus previously announced projections of a net loss per share of $0.70.
One-time and extraordinary items included a $44 million extraordinary gain from
debt for equity exchanges on non-convertible debt securities, a $68 million
expense associated with debt for equity exchanges of convertible securities, a
$89 million gain from the sale of Commonwealth Telephone stock and $138 million
in non-cash asset impairment charges.
Consolidated GAAP Revenue for 2002 was $3.15 billion, a 105 percent increase
from 2001, largely as a result of the company's acquisitions of Corporate
Software and Software Spectrum.
Communications GAAP revenue for 2002 was $1.1 billion, a 15 percent decrease
from $1.3 billion in 2001. The decline in revenue was primarily due to a $288
million reduction in upfront dark fiber revenue in 2002, partially offset by
growth in communications services revenue.
Consolidated EBITDA, excluding stock based compensation expense and non-cash
impairments and restructuring charges, was $118 million for the fourth quarter
and $354 million for the full year, compared to negative $300 million for the
full year 2001. Consolidated Adjusted EBITDA, defined by the company as
Consolidated EBITDA plus changes in cash deferred revenue and non-cash cost of
goods sold, was $121 million for the fourth quarter and $457 million for the
year, compared to $659 million for the full year 2001, excluding the
discontinued Asian operations.
"I am pleased with the substantial improvement in performance we have made this
quarter," said James Q. Crowe, CEO of Level 3. "We experienced modest
improvement in new communications sales and revenue, which coupled with
continued tight management of expenses, resulted in positive Operating Cash Flow
for the first time. We look forward to integrating Genuity's operations to
further increase cash flow over time."
Overview
The company's core business consists of communications and information services.
The company's non-core businesses include coal mining and toll road operations.
The company reports separately the financial results of the communications
business, information services business and other businesses.
Communications Business Segment
Fourth Quarter Communications Business Financial Highlights
Metric Fourth Quarter Actuals Fourth Quarter
($ in millions) Projections (1)
- ------------------------------------- ------------------------ -----------------
Communications GAAP Revenue $273 $250
- ------------------------------------- ------------------------ -----------------
Communications Cash Revenue $275 $250
- ------------------------------------- ------------------------ -----------------
Communications Services Revenue $243 $223
- ------------------------------------- ------------------------ -----------------
Reciprocal Compensation Revenue $30 $27
- ------------------------------------- ------------------------ -----------------
Communications Cost of Revenue $39 Not Provided
- ------------------------------------- ------------------------ -----------------
Communications SG&A $136 Not Provided
- ------------------------------------- ------------------------ -----------------
Communications EBITDA $105 $55
- ------------------------------------- ------------------------ -----------------
(1) Projections issued October 30, 2002.
Communications GAAP Revenue and Cash Revenue:
Communications GAAP revenue for the fourth quarter 2002 was $273 million, versus
$269 million for the fourth quarter 2001, and versus $274 million for the third
quarter 2002. Included in total communications GAAP revenue was $243 million of
communications services revenue and $30 million attributable to reciprocal
compensation revenue. Reciprocal compensation increased to $30 million for the
fourth quarter 2002 from $28 million in the third quarter 2002 as
a result of expected one-time settlement revenue of $13 million partially offset
by a decrease due to annual contractual limits on reciprocal compensation
payments made by certain carriers. Communications services revenue, excluding
non-recurring termination revenue and customer settlements, increased from $220
million during the third quarter 2002 to $233 million during the fourth quarter
2002.
Communications cash revenue, defined as communications revenue plus changes in
cash deferred revenue, was $275 million for the fourth quarter 2002 and $1.2
billion for the full year 2002. Communications cash revenue includes upfront
cash received for dark fiber and other capacity sales that are recognized as
GAAP revenue over the life of the contract, generally ranging from 5 to 20
years. As the difference between communications GAAP revenue and communications
cash revenue is not expected to be material going forward, the company does not
plan to report communications cash revenue in future quarters.
"During the fourth quarter, we saw continued strength in our softswitch and IP
services segments, as well as modest growth in new sales of transport services,"
said Kevin O'Hara, president and COO of Level 3. "Additionally, the rate of
customer disconnects continued to decline."
The company recently announced new customer agreements with AOL, Cablevision
Systems, Claranet, NORDUnet, United Online and Verizon.
Cost of Revenue
Communications cost of revenue for the fourth quarter 2002 was $39 million,
resulting in an 86 percent gross margin, versus 85 percent in the third quarter
2002 and 67 percent in the same period last year. For the full year 2002, gross
margin for the communications business increased to 81 percent from 54 percent
for the full year 2001 primarily as a result of the migration of customer
traffic to the Level 3 network from leased facilities.
Selling, General and Administrative Expenses (SG&A)
Communications SG&A expenses for the fourth quarter 2002 were $136 million, a 9
percent decrease over third quarter 2002 SG&A expenses of $150 million, and a 34
percent decrease over fourth quarter 2001 SG&A expenses of $207 million. SG&A
expenses during the fourth quarter were lower than expected due to one-time
accrual reductions totaling $16 million. The year over year decrease primarily
resulted from the company's ongoing cost containment programs. The total number
of employees in the communications business was approximately 2,725 at the end
of the fourth quarter 2002.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Communications EBITDA, excluding stock-based compensation expense and non-cash
impairments and restructuring charges, was positive $105 million for the fourth
quarter 2002, versus positive $84 million for the third quarter 2002.
Communications EBITDA was positive $282 million for the full year 2002 compared
to negative $322 million for the full year 2001.
Communications EBITDA margin increased to positive 38 percent this quarter from
positive 31 percent for the previous quarter, and negative 29 percent for the
same period in 2001.
Capital Expenditures
Consolidated gross capital expenditures for property, plant and equipment were
$45 million for the quarter and $218 million for the year. However, reported or
"net" capital expenditures were negative $6 million for the quarter, primarily
as a result of the final payments made with respect to several large
construction contracts at costs that were below previously estimated and accrued
amounts. During the quarter, the company closed out contracts that resulted in
net reversals of previously reported capital expenditures of $51 million.
Capital expenditures for the fourth quarter 2002 included approximately $2
million for the information services and other businesses.
Network and Operational Highlights
At the end of the fourth quarter, Level 3 offered services in 73 markets,
consisting of 57 markets in North America and 16 markets in Europe. The company
has local fiber networks in 36 markets and has constructed approximately 947,000
local fiber miles to date.
Level 3 continues to be focused on providing industry leading customer service
and operational performance. The company's proprietary provisioning system,
ONTAPSM, enables the company to provide its customers superior dependability and
responsiveness.
In January 2003, Level 3 was recognized by Frost & Sullivan as the Next
Generation Service Provider of the Year. Frost & Sullivan, a global growth
consulting leader, presents awards to companies that demonstrate excellence in
their industry.
Information Services Business Segment
Results for the information services business include the company's Software
Spectrum and (i)Structure subsidiaries. The results of Corporate Software are
consolidated with Software Spectrum. As a result of the company's acquisitions
of Software Spectrum and Corporate Software during 2002, prior year comparisons
for the information services business are not meaningful.
Revenue
Information services revenue was $642 million for the fourth quarter 2002,
representing a 16 percent decrease over the previous quarter and falling short
of the company's previous projection of $750 million. The revenue shortfall was
primarily a result of Microsoft's sales promotions earlier in the year that
increased third quarter revenues but diminished the typical seasonality that
results in higher fourth quarter revenues.
EBITDA
EBITDA, excluding stock-based compensation expense, from the information
services business was positive $5 million for the fourth quarter, compared to
positive $14 million for the previous quarter and negative $3 million for the
same period last year, which included only the (i)Structure business. EBITDA
lagged the company's previous projections primarily due to the revenue shortfall
and higher than expected one-time integration expenses during the fourth
quarter. The total number of employees in the information services business was
approximately 3,550 at the end of the fourth quarter.
Other Businesses
Revenue
Revenue from the company's coal mining business and its interest in California
Private Transportation Company (CPTC) was $30 million for the fourth quarter
2002, versus $29 million for the third quarter 2002 and $28 million for the same
period last year. In January 2003, Level 3 sold its interest in its Southern
California toll road, which resulted in the company receiving approximately $46
million in cash and a reduction in the company's long-term debt of approximately
$139 million.
EBITDA
EBITDA from the company's coal mining business and its interest in CPTC was
positive $8 million for the fourth quarter 2002 compared to positive $11 million
last quarter and negative $2 million for the fourth quarter 2001.
Consolidated Expenses
Stock-Based Compensation Expense: The company recognized $27 million in non-cash
expenses for stock-based compensation during the fourth quarter 2002. The
company's OSO program represents the principal component of the company's
stock-based compensation. Since the inception of this program in 1998, this
expense has been accounted for in accordance with SFAS No. 123, "Accounting For
Stock-Based Compensation." Level 3 expenses the value of OSOs and its other
stock-based compensation over the respective vesting period.
Under Level 3's plan, OSOs are issued quarterly, with the value of the options
indexed to the performance of the company's common stock relative to the
performance of the Standard & Poor's 500 (S&P 500) Index.
Depreciation and Amortization: Depreciation and amortization expenses for the
quarter were $201 million, consistent with third quarter 2002 and a 22 percent
decrease over the fourth quarter 2001 depreciation and amortization expenses of
$258 million, primarily due to the impairment charge recorded during the fourth
quarter 2001.
Working Capital, Operating Cash Flow and Liquidity
During the fourth quarter 2002, the company's consolidated working capital was a
source of approximately $8 million in cash. Working capital requirements were
favorable to previous projections primarily due to higher than expected
collections of receivables in the information services business.
Operating Cash Flow, defined by the company as Consolidated Adjusted EBITDA
minus capital expenditures and working capital requirements, was positive $84
million in the fourth quarter 2002 compared to negative $32 million for the
previous quarter. Operating Cash Flow for the full year 2002 was negative $57
million.
Free Cash Flow, defined by the company as Operating Cash Flow minus net cash
interest expense, was negative $6 million during the fourth quarter 2002
compared to negative $152 million for the third quarter. Operating Cash Flow and
Free Cash Flow benefited from the higher than expected communications EBITDA
during the quarter and higher than expected receivables collections in the
information services business.
Cash and marketable securities, plus restricted cash of $400 million held as
security under the company's credit facility, was $1.5 billion at year end,
compared to the company's previously issued projection of $1.3 billion. The
higher than expected cash balance was primarily due to the sale of certain
non-core assets during the fourth quarter and higher than expected Operating
Cash Flow.
Acquisition of Genuity Assets and Operations
As announced today, Level 3 completed its acquisition of substantially all of
Genuity, Inc.'s assets and operations. Level 3 paid $60 million in net cash
consideration to Genuity and assumed certain long-term operating agreements. As
part of the transaction, the company also paid $77 million in cash for prepaid
network vendor services to be used by Level 3 during 2003. The company also
expects to incur one-time integration costs of approximately $75 to $100 million
during 2003.
As a result of the transaction, Level 3 now operates one of the largest Internet
backbones in the world and is the primary provider of Internet connectivity for
tens of millions of dial-up and broadband subscribers, through its ISP, cable
and DSL customers.
As part of this transaction, Level 3 has assumed most of Genuity's existing
customer contracts and in addition, has signed new multi-year customer contracts
that together represent expected revenue in excess of $1 billion over the
remaining life of the agreements. The company expects the Genuity transaction to
provide approximately $600 million of new revenue to Level 3 during 2003.
"This transaction significantly improves Level 3's financial position," said
Crowe. "It adds substantial new revenue from high-quality customers and creates
value by generating significant network and operating cost synergies, and
reduced capital expenditures for the combined business. As a result of the
Genuity transaction, the company's projection of free cash flow positive is
accelerated to the second quarter of 2004."
Debt Reduction and Asset Sales
Debt Reduction
Since the beginning of the fourth quarter, the company has reduced the face
amount of consolidated debt by approximately $500 million, including $139
million through the CPTC transaction completed in January 2003. The balance of
the debt reduction occurred during the fourth quarter and consisted of $295
million face amount of debt for equity exchanges in which the company issued 24
million new shares of common stock, and a reduction in mortgage debt by $59
million through the sale of excess real estate.
"We're pleased with the continuing improvement in our balance sheet through debt
reductions," said Sureel Choksi, CFO of Level 3. "Over the past 18 months, we
have reduced the face amount of debt by approximately $2.9 billion through a
combination of cash repurchases, debt for equity exchanges and asset sales. As
we've said in the past, we'll continue to evaluate debt reduction opportunities
over time."
Asset Sales
Commonwealth Telephone
During the fourth quarter, the company received approximately $159 million in
net proceeds from the sale of 4.74 million shares of Commonwealth Telephone
Enterprises, Inc. (Commonwealth) common stock. The company currently holds
approximately 1 million shares of Commonwealth Class B common stock and retains
a 29 percent voting interest in Commonwealth.
Real Estate
During the fourth quarter, Level 3 sold two excess colocation facilities,
resulting in gross proceeds of approximately $72 million. Approximately $59
million in cash was used to repay associated mortgage debt. As a result of these
transactions, the company recognized an $81 million non-cash impairment charge
during the quarter.
CPTC
In January 2003, Level 3 received approximately $46 million in cash proceeds
from the sale of its toll road interest in Southern California. Level 3's
consolidated debt was reduced by approximately $139 million as a result of the
transaction.
Business Outlook
"The past two years have been marked by significant turmoil in the
communications industry, including generally weak demand for communications
services, long customer sales cycles and a record number of companies within the
industry filing for bankruptcy protection," said Crowe. "As a result of these
factors, as well as the overall economic slowdown, our visibility into future
sales and cash flow growth has been limited.
"However, we experienced a modest improvement in new sales during the past three
months, although sales cycles continue to be longer than we would like. Our
customers are increasingly viewing Level 3 as a clear survivor in the industry.
As a result, we are cautiously optimistic that during the middle of 2002, we
reached a bottom in terms of new sales levels and expect to see gradual
improvement going forward. In addition, we have demonstrated an ability to
continue to improve cash flow as a result of tight management of expenses.
"With the acquisition of Genuity's assets and operations, we have also taken the
first major step in industry consolidation," said Crowe. "We believe we are
uniquely positioned to realize significant cost synergies, resulting in further
improvements in cash flow after a period of integration. Overall, while we
continue to be subject to a weak economy and uncertainty surrounding the
prospects for war, our visibility, particularly as it relates to cash flow
performance, is improving."
"In addition to first quarter projections incorporating the Genuity transaction,
we are providing full year projections for certain cash flow metrics," said
Choksi. "For the communications business, we expect to initially experience a
reduction in gross margin percentage, EBITDA and Operating Cash Flow as we take
on significant portions of Genuity's existing cost structure and incur one-time
integration expenses. As the year progresses, we expect the Genuity transaction
to contribute positively to communications cash flow as we are able to realize
significant cost synergies.
"For the information services business, we expect EBITDA, excluding stock-based
compensation expense, to improve significantly during 2003 as a result of the
cost synergies realized through the combination of Software Spectrum and
Corporate Software during 2002."
Quarterly and Full Year Projections
Including the effects of the Genuity transaction, Level 3 expects consolidated
GAAP revenue to be approximately $935 million during the first quarter 2003,
including $395 million from the communications business, $520 million from
information services and $20 million of other businesses. Approximately $350
million of communications revenue is expected to come from services revenue, $10
million in non-recurring termination and customer settlement revenue, and
approximately $35 million from reciprocal compensation. The Genuity transaction,
completed during the quarter, is expected to contribute approximately $110
million to first quarter communications revenue.
Consolidated GAAP revenue is expected to be approximately $4.0 to $4.4 billion
for the full year 2003. Communications revenue is expected to be $1.7 to $1.8
billion, of which approximately $600 million is expected to come from the
Genuity transaction. Information services revenue is expected to be $2.25 to
$2.5 billion, and other revenue is expected to be $70-$80 million.
- -------------------------------------------- ------------------- ---------------
Metric First Quarter Full Year 2003
($ in millions except Net Loss per Share) Projections Projections
- -------------------------------------------- ------------------- ---------------
Consolidated Revenue $935 $4,000-$4,400
- -------------------------------------------- ------------------- ---------------
Communications Revenue $395 $1,700-$1,800
- -------------------------------------------- ------------------- ---------------
Information Services Revenue $520 $2,250-$2,500
- -------------------------------------------- ------------------- ---------------
Revenue from Other Businesses $20 $70-$80
- -------------------------------------------- ------------------- ---------------
- -------------------------------------------- ------------------- ---------------
Consolidated EBITDA $62 $350-$400
- -------------------------------------------- ------------------- ---------------
Consolidated Adjusted EBITDA $63 $375-$450
- -------------------------------------------- ------------------- ---------------
Capital Expenditures $55 Not Provided
- -------------------------------------------- ------------------- ---------------
- -------------------------------------------- ------------------- ---------------
Working Capital Requirements $25 Not Provided
- -------------------------------------------- ------------------- ---------------
Operating Cash Flow (1) $(20) $100-$125
- -------------------------------------------- ------------------- ---------------
Net Loss per Share $0.65 Not Provided
- -------------------------------------------- ------------------- ---------------
(1) Operating Cash Flow is defined as Consolidated Adjusted EBITDA less capital
expenditures and working capital requirements. Operating Cash Flow is shown net
of one-time integration costs. Integration costs are expected to be $75 to$100
million in 2003.
Gross margins for the communications business are expected to decline to the mid
to high 60 percent range for the first quarter 2003. The quarter over quarter
decrease is the result of the lower initial margins of the Genuity business.
Gross margins are projected to improve during 2003 to the mid 70 percent range
by the end of the year as the integration of Genuity's operations progresses.
Consolidated EBITDA, excluding stock-based compensation expense, is expected to
be $62 million for the first quarter, including $55 million from the
communications business, $5 million from the information services business and
the balance from other businesses. The projected quarter over quarter decline is
a result of the acquisition of Genuity's assets and operations as well as an
expected increase in SG&A expenses.
Consolidated EBITDA, excluding stock-based compensation expense, is expected to
be $350 to$400 million for the full year 2003. The company expects Consolidated
Adjusted EBITDA of $63 million for the first quarter and $375 to $450 million
for the full year 2003.
Consolidated capital expenditures, including capital expenditures related to the
Genuity integration, are expected to be approximately $55 million for the first
quarter. Consolidated working capital requirements are expected to be
approximately $25 million for the first quarter. The company expects the net
loss for the first quarter to be $0.65 per share.
Operating Cash Flow is expected to be negative $20 million for the first quarter
2003 and positive $100 to$125 million for the full year 2003, net of $75 to$100
million of one-time Genuity integration costs. The expected decrease in
Operating Cash Flow from the fourth quarter 2002 to the first quarter 2003 is
primarily a result of the seasonality of the information services business and
the effects of the Genuity transaction.
The company expects to have cash and marketable securities, including $400
million in restricted cash held as security under the company's credit facility,
of approximately $1.2 billion at year-end.
As a result of the Genuity acquisition, the company now expects to turn free
cash flow positive during the second quarter of 2004.
Beginning in the first quarter 2003, the company will change its use of non-GAAP
financial disclosures to conform with recently finalized Securities and Exchange
Commission (SEC) rules regarding the use of these non-GAAP metrics. As a result,
Level 3 may modify certain non-GAAP financial metrics in future quarters.
Summary
"I am pleased with Level 3's ability to execute in this environment," said
Crowe. "I believe that our ability to complete and successfully integrate the
Genuity transaction coupled with our solid financial and operating performance,
our industry-leading provisioning times and quality of service, will enable
Level 3 to continue to differentiate itself in the marketplace as we move
forward during 2003."
Conference Call Today
Level 3 will hold a conference call to discuss the company's fourth-quarter
results, as well as the announcement of the closing of the Genuity transaction,
at 11 a.m. eastern standard time today. To join the call, please dial
612-326-1003. A live broadcast of the call can also be heard on Level 3's web
site at www.level3.com. An audio replay of the call will also be accessible
through the web site or by dialing 320-365-3844 - Access Code 670293.
About Level 3 Communications
Level 3 (Nasdaq:LVLT) is an international communications and information
services company. The company operates one of the largest Internet backbones in
the world, is one of the largest providers of wholesale dial-up service to ISPs
in North America and is the primary provider of Internet connectivity for
millions of broadband subscribers, through its cable and DSL partners. The
company offers a wide range of communications services over its 20,000-mile
broadband fiber optic network including Internet Protocol (IP) services,
broadband transport, colocation services, and patented Softswitch-based managed
modem and voice services. Its Web address is www.Level3.com.
The company offers managed IP and information services through its subsidiaries,
Genuity Managed Services, (i)Structure and Software Spectrum. For additional
information, visit their respective web sites at www.genuity.com,
www.softwarespectrum.com, and www.i-structure.com.
Forward Looking Statement
Some of the statements made by Level 3 in this press release are forward-looking
in nature. Actual results may differ materially from those projected in
forward-looking statements. Level 3 believes that its primary risk factors
include, but are not limited to: changes in the overall economy relating to,
among other things, the September 11 attacks and subsequent events, the
challenges of integration, substantial capital requirements; development of
effective internal processes and systems; the ability to attract and retain high
quality employees; technology; the number and size of competitors in its
markets; law and regulatory policy; and the mix of products and services offered
in the company's target markets. Additional information concerning these and
other important factors can be found within Level 3's filings with the
Securities and Exchange Commission. Statements in this release should be
evaluated in light of these important factors.
LEVEL 3 COMMUNICATIONS, INC.
Consolidated Condensed Statements of Operations
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
(dollars in millions) 2002 2001 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------------
Revenue:
Communications $ 273 $ 269 $ 1,101 $ 1,298
Information Services 642 29 1,933 123
Other 30 28 114 112
----------------------------------------------------------------------
Total Revenue 945 326 3,148 1,533
Costs and Expenses:
Cost of Revenue 643 122 2,032 742
Depreciation and Amortization 201 258 802 1,122
Selling, General and Administrative 191 229 763 983
Stock-Based Compensation 27 75 181 314
Restructuring & Impairment Charges 131 3,242 181 3,353
----------------------------------------------------------------------
Total Costs and Expenses 1,193 3,926 3,959 6,514
----------------------------------------------------------------------
Loss from Operations (248) (3,600) (811) (4,981)
Other Loss, net
Interest Expense, net (140) (132) (531) (485)
Other Income 29 15 108 18
----------------------------------------------------------------------
Other Loss, net (111) (117) (423) (467)
----------------------------------------------------------------------
Loss from Continuing Operations
before Income Taxes (359) (3,717) (1,234) (5,448)
Income Tax Benefit 2 - 121 -
----------------------------------------------------------------------
Net Loss from Continuing Operations (357) (3,717) (1,113) (5,448)
Loss from Discontinued Operations, net - (539) - (605)
Extraordinary Gain on Debt Extinguishment, net 44 981 255 1,075
----------------------------------------------------------------------
Net Loss $ (313) $ (3,275) $ (858) $ (4,978)
======================================-===============================
Loss per Share:
Basic and Diluted
Net Loss from Continuing Operations $ (0.83) $ (9.70) $ (2.74) $ (14.58)
Discontinued Operations, net - (1.40) - (1.62)
Extraordinary Gain on Debt Extinguishment, net 0.10 2.56 0.63 2.88
----------------------------------------------------------------------
Net Loss $ (0.73) $ (8.54) $ (2.11) $ (13.32)
======================================-===============================
Weighted Average Shares Outstanding
(in thousands):
Basic and Diluted 427,929 383,319 407,317 373,792
======================================-===============================
LEVEL 3 COMMUNICATIONS, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
December 31, September 30,
(dollars in millions) 2002 2002
- -----------------------------------------------------------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 1,142 $ 963
Restricted securities 99 141
Accounts receivable, less allowances of $29 and $37, respectively 539 443
Other 154 121
-----------------------------------
Total Current Assets 1,934 1,668
-----------------------------------
Property, Plant and Equipment, net 6,010 6,360
Restricted Securities 467 400
Intangibles and Goodwill 380 375
Other Assets, net 172 291
-----------------------------------
$ 8,963 $ 9,094
===================================
Liabilities and Stockholders' Deficit
Current Liabilities:
Accounts payable $ 691 $ 560
Current portion of long-term debt 4 12
Accrued payroll and employee benefits 156 173
Accrued interest 92 74
Deferred revenue 199 158
Other 211 234
Total Current Liabilities 1,353 1,211
-----------------------------------
Long-Term Debt, less current portion 6,102 6,385
Deferred Revenue 1,264 1,291
Accrued Reclamation Costs 92 92
Other Liabilities 392 369
Stockholders' Deficit (240) (254)
-----------------------------------
$ 8,963 $ 9,094
===================================