Quarterly Financial Data (Unaudited)



	First Quarter		Second Quarter	Third Quarter	Fourth Quarter		Total
	(Dollars in millions, except per share amounts)
2018
Operating revenue	$	5,945	5,902	5,818	5,778		23,443
Operating income (loss)	750		767	894	(1,841	)	570
Net income (loss)	115		292	272	(2,412	)	(1,733	)
Basic earnings (loss) per common share	0.11		0.27	0.25	(2.26	)	(1.63	)
Diluted earnings (loss) per common share	0.11		0.27	0.25	(2.26	)	(1.63	)
2017
Operating revenue	$	4,209	4,090	4,034	5,323		17,656
Operating income	631		367	487	524		2,009
Net income	163		17	92	1,117		1,389
Basic earnings per common share	0.30		0.03	0.17	1.26		2.21
Diluted earnings per common share	0.30		0.03	0.17	1.26		2.21

During the fourth quarter of 2018, we recorded a non-cash, non-tax-deductible goodwill impairment charge of $2.7 billion for goodwill assigned to our consumer segment.

During the first quarter of 2018, we recognized $71 million of expenses related to our acquisition of Level 3 followed by acquisition-related expenses of $162 million, $43 million and $117 million in the second, third and fourth quarters of 2018, respectively.

During the first quarter of 2017, we recognized $10 million of expenses related to our acquisition of Level 3 followed by acquisition-related expenses of $18 million, $37 million and $206 million in the second, third and fourth quarters of 2017, respectively. During the first quarter of 2017, depreciation and amortization expense of $50 million was not recognized on colocation assets held for sale. During the second quarter, we recognized a combined loss of $119 million resulting from the sale of the colocation business and data centers and the accounting treatment of the failed-sale-leaseback. During the second quarter of 2017, we recognized a one-time depreciation charge of $44 million related to the failed-sale-leaseback accounting. During the third and fourth quarters of 2017, we recognized $44 million and $20 million, respectively, of interest expense related to CenturyLink, Inc.'s $6 billion secured term loan utilized in the acquisition of Level 3. In the fourth quarter of 2017, we recognized a tax benefit of approximately $1.1 billion due to the change in the federal corporate tax rate from 35% to 21%.