What does operating segments — revenue adjustments mean?

Accounting adjustments made to segment revenue to reflect underlying performance or reporting changes.

How do you interpret operating segments — revenue adjustments?

Large or frequent adjustments may signal volatility in the business model or significant corporate restructuring activities.

How does operating segments — revenue adjustments compare across companies?

Commonly seen in companies undergoing significant M&A activity or portfolio transformation, such as divestitures of legacy assets.

Lumen Technologies LUMN Operating Segments — Revenue Adjustments

Discontinued — last reported Q1 '18

Similar metrics at other companies

FEEliminations and reconciling adjustments — Revenue

-$17M-13.3%

CPAYOther — Acquisition Accounting Adjustments

$0—

NWSAOther — Revenue reclassifications

-$15M—

ALGNSystems and Services — Adjustments

$9.4M+304%

LFUSTransportation — Adjustments

$0—

FISOperating Segments — Acquisitionof Deferred Revenue Adjustments

$1M-50.0%

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 ratio1×-0.2×

Where this comes from

Reported directly by Lumen Technologies in its filing.

Tagged under the XBRL concept ctl:RevenueAdjustments.

The official record: Lumen Technologies’s 10-Q, filed May 10, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does operating segments — revenue adjustments mean?: Accounting adjustments made to segment revenue to reflect underlying performance or reporting changes.
How do you interpret operating segments — revenue adjustments?: Large or frequent adjustments may signal volatility in the business model or significant corporate restructuring activities.
How does operating segments — revenue adjustments compare across companies?: Commonly seen in companies undergoing significant M&A activity or portfolio transformation, such as divestitures of legacy assets.