Unaudited Quarterly Financial Data (as revised)



	Three Months Ended
	March 31,						June 30,						September 30,						December 31,
	2014			2013			2014			2013			2014			2013			2014			2013
	(as revised)						(as revised)									(as revised)						(as revised)
(dollars in millions except per share data)
Revenue	$	1,609		$	1,577		$	1,625		$	1,565		$	1,629		$	1,569		$	1,914		$	1,602
Costs and Expenses:
Network Access Costs	614			629			613			616			607			608			695			618
Network Related Expenses	292			302			302			300			307			314			345			298
Depreciation and Amortization	184			194			187			199			187			203			250			204
Selling, General and Administrative Expenses	255			297			267			310			266			292			393			263
Total Costs and Expenses	1,345			1,422			1,369			1,425			1,367			1,417			1,683			1,383
Operating Income	264			155			256			140			262			152			231			219
Other Income (Expense):
Interest Income	—			—			—			—			1			—			—			—
Interest expense	(151		)	(169		)	(149		)	(167		)	(159		)	(165		)	(195		)	(148		)
Gain (Loss) on extinguishments of debt, net	—			—			—			—			—			(17		)	(53		)	(67		)
Other, net	6			(50		)	(44		)	14			(11		)	23			(20		)	9
Total Other Expense	(145		)	(219		)	(193		)	(153		)	(169		)	(159		)	(268		)	(206		)
Income (Loss) Before Income Taxes	119			(64		)	63			(13		)	93			(7		)	(37		)	13
Income Tax (Expense) Benefit	(7		)	(14		)	(12		)	(11		)	(8		)	(14		)	103			1
Net Income (Loss)	$	112		$	(78	)	$	51		$	(24	)	$	85		$	(21	)	$	66		$	14
Net Income (Loss) Per Share - Basic	$	0.48		$	(0.36	)	$	0.21		$	(0.11	)	$	0.36		$	(0.09	)	$	0.22		$	0.06
Net Income (Loss) Per Share - Diluted	$	0.47		$	(0.36	)	$	0.21		$	(0.11	)	$	0.35		$	(0.09	)	$	0.21		$	0.06

Net income (loss) per share for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while net income (loss) per share for the year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the income (loss) per share for each of the four quarters may not equal the net income (loss) per share for the year.

During the fourth quarter of 2014, the Company recognized a loss on extinguishment of debt of $53 million, related to the refinancing of the 11.875% Senior Notes due 2019.

During the fourth quarter of 2014, the Company completed its acquisition of tw telecom and therefore the results of operations for the fourth quarter of 2014 include the results of tw telecom for November and December. Additionally, the Company incurred $70 million in expenses related to the acquisition of tw telecom.

During the fourth quarter of 2014, the Company increased its senior secured credit facility by adding a $2 billion Tranche B 2022 Term Loan. The proceeds were used for the tw telecom acquisition.

During the fourth quarter of 2014, the Company also recognized a $100 million income tax benefit primarily related to the release of a foreign deferred tax valuation allowance.

During the third quarter of 2014, the Company entered into an indenture totaling $1 billion for 5.375% Senior Notes due 2022. The proceeds were used for the tw telecom acquisition.

During the second quarter of 2014. the Company recognized a loss of approximately $34 million resulting from the devaluation of Venezuelan bolivar denominated monetary assets and liabilities from the official rate of 6.3 to the SICAD 1 rate of 10.6.

During the fourth quarter of 2013, the Company recognized a loss on extinguishment of debt of $67 million including $10 million related to the refinancing of the Tranche B-II 2019 Term Loan, $56 million related to the refinancing of the 10% Senior Notes due 2018 and $1 million related to the refinancing of the Floating Rate Senior Notes due 2015.

During the third quarter of 2013, the Company recognized a loss on extinguishment of debt of $17 million, related to the refinancing of the $596 million Tranche B 2016 and the $815 million Tranche B 2019 Term Loans.

During the first quarter of 2013, the Venezuelan government devalued the Venezuelan bolivar by increasing the official rate from 4.30 Venezuelan bolivares to the U.S. dollar to 6.30 Venezuelan bolivares to the U.S. dollar. The devaluation of the Company's net monetary assets resulted in a charge of $22 million.