Lumen Technologies Inc
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
LUMN$3.99+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-30.
0000018926-24-000054
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0000018926-24-000094
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 174 previous paragraphs and 183 current paragraphs.
90 unchanged; 76 reworded; 16 added; 7 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Macroeconomic Changes
Current report
From time to time, we may change the categorization of our products and services.
Current report
•allocate capital to strategically important products and services;
Current report
Goodwill Impairment
Current report
We are required to perform impairment tests related to our goodwill annually, which we perform as of October 31, or sooner if an indicator of impairment occurs. The sustained decline in our share price during the second quarter of 2023 was considered a triggering event requiring evaluation of goodwill impairment.
Current report
We report under two segments: Business and Mass Markets. As of June 30, 2023, we had three reporting units for goodwill impairment testing, which were (i) Mass Markets, (ii) North America Business ("NA Business") and (iii) Asia Pacific region ("APAC").
Current report
When we performed an impairment test during the second quarter of 2023, we concluded that the estimated fair value of certain of our reporting units was less than their carrying value of equity as of our testing date. As a result, we recorded a non-cash, non-tax-deductible goodwill impairment charge aggregating to $8.8 billion in the second quarter of 2023.
Current report
See Note 2—Goodwill, Customer Relationships and Other Intangible Assets to our consolidated financial statements in this report for further details on these tests and impairment charges.
Current report
Three and six months ended June 30, 2024 compared to the same periods ended June 30, 2023
Current report
Three and six months ended June 30, 2024 compared to the same periods ended June 30, 2023
Current report
Impact of Recent Divestitures
Current report
In the fourth quarter of 2023, we sold substantially all of our content delivery network service contracts. In the second quarter of 2024, we sold our non-controlling interest in an investment in exchange for $250 million of pre-tax cash proceeds.
Current report
Future Financings
Current report
Potential Transactions Impacting Liquidity
Current report
Subsequent to the end of the second quarter 2024, we announced that we recently sold $5 billion in new Private Connectivity Fabric SM solutions. The majority of cash from these agreements is expected to be received over the next 3 to 4 years. We will incur certain material expenditures in connection with these custom network agreements, and the majority of such expenditures are also expected to be made over the next 3 to 4 years. The payments we actually make and receive may vary materially from what we expect and will depend, among other things, on the timing of our delivery and installation of the services.
Current report
On April 25, 2024, the FCC adopted “net neutrality” rules regulating broadband internet services as “telecommunications services” in a manner comparable to rules in effect between 2015 and 2018. It is unclear if currently pending legal challenges of these rules will succeed. If the rules withstand these challenges, it is also unclear how the FCC will implement and enforce them. We remain committed to providing open and robust broadband services to all our customers regardless of the applicable regulatory regime. Nonetheless, it is possible that implementation of these new rules could impact our operational, legal and compliance costs.
Removed paragraphs (7)
Previous report
Changes in the Macroeconomic, Industry and Work Environments
Previous report
•allocate capital to our most promising products and services;
Previous report
See Note 9—Fair Value of Financial Instruments for more information regarding the losses recognized on our investments in equity securities and a limited partnership.
Previous report
Three months ended March 31, 2024 compared to the same period ended March 31, 2023
Previous report
Three months ended March 31, 2024 compared to the same period ended March 31, 2023
Previous report
Impact of the Divestitures of the Latin American, ILEC and EMEA Business
Previous report
Future Financings and Debt Reduction Transactions
Reworded paragraphs (76)
Previous wording
Unless the context requires otherwise, (i) references in this report to "Lumen Technologies" or "Lumen," "we," "us" and "our" refer to Lumen Technologies, Inc. and its consolidated subsidiaries and (ii) references in this report to "Level 3" refer to Level 3 Parent, LLC and its predecessor, Level 3 Communications, Inc., which we acquired on November 1, 2017.
Current wording
References in this report to "Lumen Technologies" or "Lumen," "we," "us" and "our" refer to Lumen Technologies, Inc. and its consolidated subsidiaries.
Previous wording
Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") included herein should be read in conjunction with MD&A and the other information included in our Annual Report on Form 10-K for the year ended December 31, 2023 and with the consolidated financial statements and related notes in Item 1 of Part I of this report. The results of operations and cash flows for the first three months of the year are not necessarily indicative of the results of operations and cash flows that might be expected for the entire year.
Current wording
Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") included herein should be read in conjunction with the information included in our Annual Report on Form 10-K for the year ended December 31, 2023 and with the consolidated financial statements and related notes in Item 1 of Part I of this report. The results of operations and cash flows for the first six months of the year are not necessarily indicative of the results of operations and cash flows that might be expected for the entire year.
Previous wording
We are a facilities-based technology and communications company that provides a broad array of integrated products and services to our domestic and global business customers and our domestic mass markets customers. We operate one of the world's most interconnected networks. Our platform empowers our customers to swiftly adjust digital programs to meet immediate demands, create efficiencies, accelerate market access, and reduce costs, which allows our customers to rapidly evolve their IT programs to address dynamic changes. We are among the largest providers of communications services to domestic and global enterprise customers. Our long-haul network throughout North America and Asia Pacific connects to metropolitan fiber networks that we operate. As of March 31, 2024, we had approximately 27,000 employees.
Current wording
We are a facilities-based technology and communications company that provides a broad array of integrated products and services to our domestic and global business customers and our domestic mass markets customers. We operate one of the world's most interconnected networks. Our platform empowers our customers to swiftly adjust digital programs to meet immediate demands, create efficiencies, accelerate market access, and reduce costs, which allows our customers to rapidly evolve their IT programs to address dynamic changes. We are among the largest providers of communications services to domestic and global enterprise customers. Our long-haul network throughout North America and Asia Pacific connects to metropolitan fiber networks that we operate. As of June 30, 2024, we had approximately 25,000 employees.
Previous wording
Over the past few years, societal, governmental and macroeconomic changes have impacted us, our customers and our business in several ways. On a regular basis, we review and rationalize our lease footprint and may incur accelerated lease costs when we determine to cease using underutilized leased property locations. We did not incur material accelerated lease costs during the three months ended March 31, 2024.
Current wording
Over the past few years macroeconomic changes have impacted us and our customers in several ways. On a regular basis, we review and rationalize our lease footprint and may incur accelerated lease costs when we determine to cease using underutilized leased property locations. We did not incur material accelerated lease costs during the six months ended June 30, 2024.
Previous wording
Additionally, as discussed further elsewhere herein, macroeconomic changes over the past few years have resulted in (i) increases in certain revenue streams and decreases in others, (ii) operational challenges resulting from inflation and, to a lesser extent, shortages of certain components and other supplies that we use in our business, (iii) delays in our cost transformation initiatives and (iv) delayed decision-making by certain of our customers. None of these effects, individually or in the aggregate, have to date materially impacted our financial performance or financial position.
Current wording
Additionally, we believe macroeconomic changes over the past few years have resulted in (i) increases in certain revenue streams and decreases in others, (ii) operational challenges resulting from inflation and shortages of certain components and other supplies that we use in our business, (iii) delays in our cost transformation initiatives and (iv) delayed decision-making by certain of our customers. None of these effects, individually or in the aggregate, have to date materially impacted our financial performance or financial position.
Previous wording
Industry developments over the past couple years have increased fiber construction demand. The resulting increase in construction labor rates increased the cost of enabling units to be capable of receiving our fiber broadband services. In recent years, we believe these factors contributed to a delay in attaining our Quantum Fiber buildout targets.
Current wording
Industry developments over the past few years have increased fiber construction demand. The resulting increase in construction labor rates increased the cost of enabling units to be capable of receiving our fiber broadband services. From time to time, we believe these factors contributed to a delay in attaining our Quantum Fiber buildout targets.
Previous wording
These above-mentioned macroeconomic factors, coupled with dis-synergies resulting from our 2022 and 2023 divestitures, changes in customer preferences and negotiations with our creditors through the end of the first quarter of 2024, placed additional pressures on our financial performance and our market capitalization. These developments contributed to us recognizing a total of nearly $14.0 billion in goodwill impairment charges in 2022 and 2023. Some, but not all, of these pressures continue to impact us. To the extent these pressures continue, we could experience additional deterioration in our projected cash flows or market capitalization, or make significant changes to the assumed discount rates or market multiples that we use to determine the fair value of our reporting units. Any of these could result in additional impairments on our approximately $2.0 billion of remaining goodwill in the future periods.
Current wording
These above-mentioned macroeconomic factors, coupled with dis-synergies resulting from our 2022 and 2023 divestitures, changes in customer preferences and negotiations with our creditors through the end of the first quarter of 2024, placed additional pressures on our financial performance and our market capitalization. These developments contributed to us recognizing a total of nearly $14.0 billion in goodwill impairment charges in 2022 and 2023. Some of these pressures continue to impact us. To the extent these pressures continue, we could experience additional deterioration in our projected cash flows or market capitalization, or make significant changes to the assumed discount rates or market multiples that we use to determine the fair value of our reporting units. Any of these could result in additional future impairments of our approximately $2.0 billion of remaining goodwill.
Previous wording
•Business Segment: Under our Business segment, we provide our products and services under four sales channels:
Current wording
•Business Segment: Under our Business segment, we provide our products and services under the following five sales channels:
Previous wording
◦Mid-Market Enterprise: Under our mid-market enterprise sales channel, we provide our products and services to medium-sized enterprises in North America directly and through our indirect channel partners.
Current wording
◦Mid-Market Enterprise: Under our mid-market enterprise sales channel, we provide our products and services to medium-sized enterprises in North America primarily through our indirect channel partners.
Previous wording
◦International and Other: Under our international and other sales channel, we provide products and services (i) to multinational and global enterprise customers and carriers and (ii) under those content delivery network ("CDN") contracts that we did not sell in late 2023.
Current wording
◦International and Other: Under our international and other sales channel, we provide products and services (i) to multinational and global enterprise customers and carriers and (ii) under content delivery network ("CDN") contracts that we did not sell in late 2023.
Previous wording
•Grow, which includes products and services that we anticipate will grow, including our dark fiber, Edge Cloud services, IP, managed security, software-defined wide area networks ("SD WAN"), Unified Communications and Collaboration ("UC&C") and wavelengths services;
Current wording
•Grow, which includes existing and emerging products and services in which we are significantly investing, including our dark fiber, Edge Cloud services, IP, managed security, software-defined wide area networks ("SD WAN"), Unified Communications and Collaboration ("UC&C") and wavelengths services;
Previous wording
•Harvest, which includes our legacy services managed for cash flow, including Time Division Multiplexing ("TDM") voice, private line and other legacy services; and
Current wording
•Harvest, which includes our legacy services managed for cash flow, including Time Division Multiplexing ("TDM") voice, and private line services; and
Previous wording
In addition to the above-described impact of macroeconomic pressures, our consolidated operations have been, and will continue to be, impacted by the following company-wide trends:
Current wording
In addition to the above-described impact of macroeconomic pressures, our consolidated operations have been, and will continue to be, impacted by the following trends:
Previous wording
•The increased use of digital applications, online video, gaming and artificial intelligence has substantially increased demand for robust, scalable network services. We are continuing to enhance our product capabilities and simplify our product portfolio based on demand and profitability to enable customers to have access to greater bandwidth.
Current wording
•The increased use of digital applications, online video, gaming and artificial intelligence has substantially increased demand for robust, scalable network services. We are continuing to enhance our product capabilities and taking other steps to enable customers to have access to greater bandwidth.
Previous wording
•Changes in customer preferences and in the regulatory, technological and competitive environment are (i) significantly reducing demand for our more mature service offerings, commoditizing certain of our other offerings, or resulting in volume or rate reductions for other of our offerings and (ii) also creating certain opportunities for us arising out of increased demand for lower latency provided by Edge computing and for faster and more secure data transmissions.
Current wording
•Changes in customer preferences and in the regulatory, technological and competitive environment are (i) significantly reducing demand for our more mature service offerings, commoditizing certain offerings, or resulting in volume or rate reductions for other offerings and (ii) also creating certain opportunities for us arising out of increased demand for lower latency provided by Edge computing and for faster and more secure data transmissions.
Previous wording
The following table summarizes the results of our consolidated operations for the three months ended March 31, 2024 and March 31, 2023:
Current wording
The following table summarizes the results of our consolidated operations for the three and six months ended June 30, 2024 and June 30, 2023:
Previous wording
•increase prices on our products and services and rationalize products across our portfolio if and when practicable; and
Current wording
•optimize prices on our products and services and rationalize products across our portfolio if and when practicable; and
Previous wording
The following table summarizes our consolidated operating revenue recorded under each of our two segments and in our five above-described revenue sales channels within the Business segment:
Current wording
The following tables summarize our consolidated operating revenue recorded under each of our two segments and in our five above-described revenue sales channels within the Business segment:
Previous wording
Our consolidated operating revenue decreased by $448 million for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023, $168 million of which was due to the sale of the EMEA business and select CDN contracts in the fourth quarter of 2023. See our segment results below for additional information on the drivers of the decrease in revenue.
Current wording
Our consolidated operating revenue decreased by $393 million and $841 million for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023, $164 million and $332 million of which was due to the sale of the EMEA business and select CDN contracts in the fourth quarter of 2023. See our segment results below for additional information on the drivers of the remaining decrease in revenue.
Previous wording
The following table summarizes our operating expenses for the three months ended March 31, 2024 and 2023:
Current wording
The following tables summarize our operating expenses for the three and six months ended June 30, 2024 and 2023:
Previous wording
Cost of services and products (exclusive of depreciation and amortization) decreased by $165 million for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. This decrease was primarily due to a decrease of approximately $126 million due to the sale of the EMEA business in the fourth quarter of 2023, as well as reductions of approximately $16 million in facilities costs and $14 million in employee-related expense from lower headcount in our retained business.
Current wording
Cost of services and products (exclusive of depreciation and amortization) decreased by $87 million and $252 million for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023. These decreases were primarily due to (i) a decrease of approximately $121 million and $247 million due to the sale of the EMEA business in the fourth quarter of 2023, (ii) reductions of approximately $51 million and $65 million in employee-related expense from lower headcount in our retained business and (iii) decreased network expenses of $17 million and $14 million, respectively. These decreases were partially offset by increases of approximately $68 million and $52 million from higher facilities costs, as well as increases of approximately $26 million and $30 million from higher equipment and maintenance costs.
Previous wording
Selling, general and administrative expenses increased by $102 million for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increase was primarily due to an increase of $143 million in legal and other professional fees, mainly driven by our debt transaction, offset by a decrease of approximately $25 million due to the sale of our EMEA business in the fourth quarter of 2023, as well as recognition of a deferred gain of $22 million on the sale of select CDN contracts in the fourth quarter of 2023.
Current wording
Selling, general and administrative expenses decreased by $48 million and increased by $54 million, respectively, for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023. For the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, the decrease was due to a $67 million loss as a result of our donation of our Monroe, Louisiana campus in 2023, as well as a decrease of approximately $30 million due to the sale of the EMEA business, partially offset by an increase of $57 million in employee related costs, mostly severance costs incurred in the three months ended June 30, 2024. For the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, the increase was primarily due to an increase of $143 million in legal and other professional fees, mainly driven by our first quarter 2024 debt transactions, and an increase of $75 million in employee related expenses, primarily due to severance costs incurred in the second quarter of 2024, partially offset by (i) a decrease of approximately $67 million loss incurred as a result of our donation of our Monroe, Louisiana campus in 2023, (ii) a decrease of $55 million due to the sale of the EMEA business, (iii) recognition of a deferred gain of $22 million on the sale of select CDN contracts in the fourth quarter of 2023, and (iv) a decrease of $12 million in property and other taxes.
Previous wording
Loss on Sale of Business
Current wording
(Gain) Loss on Sale of Business
Previous wording
For a discussion of the loss on sale of business that we recognized for the three months ended March 31, 2023, see Note 2—Divestitures of the Latin American, ILEC and EMEA Businesses to our consolidated financial statements in Item 8 of Part II of our Annual Report Form 10-K for the year ended December 31, 2023.
Current wording
For a discussion of the (gain) loss on sale of business that we recognized for the three and six months ended June 30, 2023, see Note 2—Divestitures of the Latin American, ILEC and EMEA Businesses to our consolidated financial statements in Item 8 of Part II of our Annual Report Form 10-K for the year ended December 31, 2023.
Previous wording
The following table provides detail of our depreciation and amortization expense:
Current wording
The following tables provide detail of our depreciation and amortization expense:
Previous wording
Depreciation expense increased by $3 million for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023 primarily due a $12 million increase from accelerated depreciation of CDN assets and an $8 million increase due to decommissioned assets, which were partially offset by a decrease of $16 million due to changes in the depreciation lives of fiber network assets.
Current wording
Depreciation expense decreased by $17 million and $14 million for the three and six months ended June 30, 2024, as compared to the three and six months ended June 30, 2023 primarily due to a decrease of $16 million and $32 million, respectively, relating to changes in the depreciation lives of fiber network assets and a decrease of $16 million and $20 million, respectively, relating to a net decline in depreciable assets. These decreases were partially offset by (i) a $6 million and $18 million increase, respectively, from accelerated depreciation of CDN assets, (ii) a $6 million and $12 million increase, respectively, relating to changes made at the beginning of 2024 in the method of depreciation from the group method of depreciation to straight line by individual asset method, and (iii) an increase of $8 million for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023 due to decommissioned assets.
Previous wording
Amortization expense increased by $12 million for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023. The increase was primarily due to an increase of $13 million associated with net increases in amortizable assets as well as $10 million associated with the accelerated amortization of CDN software assets. These increases were partially offset by (i) a $4 million decrease due to a changed method of amortization as discussed in Note 1— Background "— Change in Accounting Estimates", (ii) a $7 million decrease from certain customer relationship intangible assets becoming fully amortized in the second quarter of 2023 and (iii) a $4 million decrease related to CDN customer relationships.
Current wording
Amortization expense increased by $14 million and $26 million for the three and six months ended June 30, 2024, as compared to the three and six months ended June 30, 2023. These increases were primarily due to an increase of $18 million and $32 million, respectively, associated with the accelerated amortization of software assets, mostly related to CDN, as well as an increase of $4 million and $17 million, respectively, associated with net increases in amortizable assets. These increases were partially offset by (i) a $4 million and $8 million decrease, respectively, due to a changed method of amortization as discussed in Note 1— Background "— Change in Accounting Estimates", (ii) a $4 million and $8 million decrease, respectively, related to changes in our CDN customer relationships, and (iii) a $7 million decrease for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023 due to certain customer relationship intangible assets becoming fully amortized in the second quarter of 2023.
Previous wording
The following table summarizes our total other income (expense), net and income tax expense:
Current wording
The following tables summarize our total other income (expense), net and income tax expense:
Previous wording
Interest expense increased by $12 million for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increase was due to the increase in the average interest rate from 5.73% for the three months ended March 31, 2023 to 6.59% for the three months ended March 31, 2024, which was partially offset by a decrease in average outstanding long-term debt of approximately $900 million.
Current wording
Interest expense increased by $79 million and $91 million for the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023. These increases were due to the increase in the average interest rate from (i) 6.01% to 7.74% for the three months ended June 30, 2023 compared to the three months ended June 30, 2024 and (ii) 5.85% to 6.99%, for the six months ended June 30, 2023 compared to the six months ended June 30, 2024. These increases were partially offset by a decrease of approximately $1 billion, in average outstanding long-term debt for both the three and six months ended June 30, 2024 as compared to the three and six months ended June 30, 2023.
Previous wording
For a discussion of the TSA Transactions that resulted in the net gain on debt we recognized for the three months ended March 31, 2024, see Note 5—Long-Term Debt and Credit Facilities. See Note 7—Long-Term Debt and Credit Facilities to our consolidated financial statements in Item 8 of Part II of our Annual Report Form 10-K for the year ended December 31, 2023 for discussion of the 2023 exchange offers that resulted in the net gain on debt recognized for the three months ended March 31, 2023.
Current wording
For a discussion of certain transactions that resulted in the net gain on debt we recognized for the three and six months ended June 30, 2024, see Note 5—Long-Term Debt and Credit Facilities. See Note 7—Long-Term Debt and Credit Facilities to our consolidated financial statements in Item 8 of Part II of our Annual Report Form 10-K for the year ended December 31, 2023 for discussion of the 2023 exchange offers that resulted in the net gain on debt recognized for the three months and six months ended June 30, 2023.
Previous wording
For the three months ended March 31, 2024, our effective income tax rate was 44.1%, including an unfavorable impact of interest on our uncertain tax position reserves, and for the three months ended March 31, 2023, our effective income tax rate was 24.9%.
Current wording
For the three and six months ended June 30, 2024, our effective income tax rate was (19.5)% and 86.9%, respectively, including an unfavorable impact of interest on our uncertain tax position reserves. For the three and six months ended June 30, 2023, our effective income tax rate was (0.5)% and (2.7)%, respectively, which included a $1.8 billion unfavorable impact of a non-deductible goodwill impairment and a $11 million unfavorable impact as a result of our donating our Monroe, Louisiana campus.
Previous wording
Business segment revenue decreased $377 million for the three months ended March 31, 2024 as compared to March 31, 2023. Approximately $168 million of this decrease was due to the sale of the EMEA business and select CDN contracts in the fourth quarter of 2023. More specifically, within each product category:
Current wording
Business segment revenue decreased $331 million and $708 million for the three and six months ended June 30, 2024 as compared to June 30, 2023. Approximately $164 million and $332 million, for the three and six months ended June 30, 2024, respectively, of these decreases was due to the sale of the EMEA business and select CDN contracts in the fourth quarter of 2023. More specifically, within each product category for the three and six months ended June 30, 2024 as compared to the comparable period ended June 30, 2023:
Previous wording
•Grow decreased by $75 million for the three months ended March 31, 2024 compared to March 31, 2023 due to a decrease of approximately $81 million associated with the sale of the EMEA business. This decline was partially offset by growth in IP services of $35 million;
Current wording
•Grow decreased by $81 million and $156 million, due to a decrease of approximately $81 million and $162 million associated with the sale of the EMEA business. Additionally, for the three and six months ended June 30, 2024, wavelength products declined by $19 million and $35 million. These declines for the three and six months ended June 30, 2024 were partially offset by growth in IP services of $26 million and $61 million;
Previous wording
•Nurture decreased by $136 million for the three months ended March 31, 2024 compared to March 31, 2023, approximately $27 million of which was attributable to the sale of the EMEA business. The remainder of the decline is principally attributable to declines in traditional VPN services of $78 million and declines in Ethernet services of $35 million;
Current wording
•Nurture decreased by $123 million and $259 million, approximately $27 million and $54 million of which was attributable to the sale of the EMEA business. The remainder of the declines are principally attributable to declines in traditional VPN services of $64 million and $142 million and declines in Ethernet services of $29 million and $64 million, for the three and six months June 30, 2024 as compared to the comparable periods ended June 30, 2023, respectively;
Previous wording
•Harvest decreased by$124 million for the three months ended March 31, 2024 compared to March 31, 2023, approximately $24 million of which was attributable to the sale of the EMEA business. The remainder of the decline is principally attributable to an $80 million decline in legacy voice and private line services; and
Current wording
•Harvest decreased by $125 million and $249 million, approximately $26 million and $50 million of which was attributable to the above-mentioned sale of the EMEA business. The remainder of the decline is principally attributable to a $79 million and $159 million decline in legacy voice and private line services; and
Previous wording
•Other decreased by $42 million for the three months ended March 31, 2024 compared to March 31, 2023 approximately $29 million of which was attributable to the sale of select CDN contracts and $14 million of which is due to lower equipment revenue, which was partially offset by a $12 million increase in managed and professional services.
Current wording
•Other decreased by $2 million and $44 million, approximately $22 million and $51 million of which was attributable to the above-mentioned sale of select CDN contracts, which was partially offset by a $20 million and $32 million increase in managed and professional services.
Previous wording
Business segment expense decreased by $137 million for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 primarily driven by a decrease of $53 million due to the sale of the EMEA business and select CDN contracts and an $86 million reduction in overall network expense.
Current wording
Business segment expense decreased by $125 million and $262 million for the three and six months ended June 30, 2024, respectively, as compared to the three and six months ended June 30, 2023 primarily driven by (i) a decrease of $67 million and $120 million due to the above-mentioned sale of the EMEA business and select CDN contracts, (ii) a $93 million reduction in overall network expense for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, and (iii) a decrease of $39 million in employee-related costs for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023.
Previous wording
Business segment adjusted EBITDA as a percentage of segment revenue was 52% for the three months ended March 31, 2024 and 54% for the three months ended March 31, 2023.
Current wording
Business segment adjusted EBITDA as a percentage of segment revenue was 53% for each of the three and six months ended June 30, 2024, and 54% for each of the three and six months ended June 30, 2023.
Previous wording
Mass Markets segment revenue decreased $71 million for the three months ended March 31, 2024 as compared to March 31, 2023. More specifically, within each product category:
Current wording
Mass Markets segment revenue decreased $62 million and $133 million for the three and six months ended June 30, 2024, respectively, as compared to the three and six months ended June 30, 2023. More specifically, within each product category:
Previous wording
•Fiber Broadband revenue increased $18 million, primarily driven by growth in the number of fiber customers associated with our continued increase in enabled locations from our Quantum Fiber buildout;
Current wording
•Fiber Broadband revenue increased $23 million and $41 million, primarily driven by growth in the number of fiber customers associated with our continued increase in enabled locations from our Quantum Fiber buildout;
Showing the first 40 of 76 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
nm Percentages greater than 200% and comparisons between positive and negative values or to/from zero values are considered not meaningful.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Although we expect to use substantially all of our remaining NOLs in future periods in accordance with Section 382's annual limitations, we cannot assure this. See "Risk Factors—Financial Risks—We may not be able to fully utilize our NOLs" in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2023.