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Lumen Technologies LUMN Material Reconciling Items — Goodwill Impairment

Discontinued — last reported Q4 '15

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Other financials

Income statement

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Revenue$2.9B-8.9%
Gross profit$1.5B-2.1%
Operating income$602.0M+463%
Net income-$200.0M+0.5%
EPS (diluted)-$0.200.0%

Balance sheet

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Cash & equivalents$1.6B-14.4%
Total debt$13.4B-29.0%
Total equity-$1.3B-556%
Total assets$30.6B-8.7%

Cash flow

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Operating cash flow$1.3B+20.8%
CapEx$943.0M+19.2%
Free cash flow$380.0M+25.0%

Valuation

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Market cap$8.45B+79.1%
Enterprise value$20.23B-9.8%
P/S0.7×+0.3×

Profitability

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Gross margin47.3%-0.9pp
Operating margin-2.6%-6.6pp
Net margin-14.3%
FCF margin-3.9%-9.2pp

Returns & leverage

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Return on equity-170.9%+20.5pp
Debt / equity65.4×+26.1×
Current ratio-0.2×

Where this comes from

Reported directly by Lumen Technologies in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Lumen Technologies’s 10-K, filed February 25, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does material reconciling items — goodwill impairment mean?
A non-cash accounting charge taken when the value of acquired businesses is determined to be lower than what is currently recorded on the balance sheet.
How do you interpret material reconciling items — goodwill impairment?
An increase indicates a write-down of asset values, suggesting management's previous acquisition strategy or current market conditions have negatively impacted the long-term outlook for specific business units. A decrease or absence of this charge suggests stability in the valuation of acquired intangible assets.
How does material reconciling items — goodwill impairment compare across companies?
Peers in the telecommunications and technology sectors frequently report similar impairment charges during periods of industry consolidation or technological shifts that render legacy assets less valuable.