Business Context and Reporting Period
This Form 8-K was filed by CenturyLink, Inc. on March 2, 2012. The report serves to update historical and pro forma financial information previously filed on May 17, 2011, following the acquisition of Qwest Communications International Inc. on April 1, 2011. The filing also incorporates the acquisition of SAVVIS, Inc., which occurred on July 15, 2011.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity within the text of the report itself. Instead, it references the following documents for detailed financial data:
- Qwest Financials: Audited consolidated balance sheets as of December 31, 2011, and 2010, along with statements of operations and cash flows for the period from April 1, 2011, to December 31, 2011, and the two-year period ended December 31, 2010 (Exhibit 99.1).
- Pro Forma Data: Unaudited pro forma combined condensed financial information reflecting the acquisitions of both Qwest and SAVVIS, Inc., assuming both acquisitions occurred on January 1, 2011 (Exhibit 99.2).
Material Changes
The primary material change addressed in this filing is the update to pro forma financial information to include the acquisition of SAVVIS, Inc. The pro forma statement of income for the year ended December 31, 2011, now reflects the combined entity of CenturyLink, Qwest, and SAVVIS, prepared under the assumption that both acquisitions were completed on January 1, 2011.
Guidance, Outlook, and Risks
The filing text does not contain management commentary, forward-looking guidance, specific risk factors, or details on contingencies. The document is strictly a procedural update to incorporate audited financial statements of the acquired business (Qwest) and updated pro forma information.
Investor Verification Checklist
- Review Exhibit 99.1 for the audited financial statements of Qwest Communications International Inc. for the years ended December 31, 2010, and 2011.
- Examine Exhibit 99.2 for the unaudited pro forma combined condensed financial information reflecting the combined operations of CenturyLink, Qwest, and SAVVIS.
- Verify the assumptions used in the pro forma data, specifically the treatment of the Qwest and SAVVIS acquisitions as if they occurred on January 1, 2011.
- Confirm the integration of Qwest's financials from its Annual Report on Form 10-K filed on March 2, 2012.