Qwest (CTGG) risk factors, FY2024 10-K

Business Risks

1. 01Challenges with integrating or modernizing our existing applications and systems could harm our performance
2. 02We may not be able to create the global digital experience expected by customers
3. 03Our attempts to capitalize on emerging market opportunities may not be as successful as envisioned
4. 04We operate in an intensely competitive industry and existing and future competitive pressures could harm our performance
5. 05Our ability to successfully compete could be hampered if we fail to timely develop and market innovative technology solutions that address changing customer demands
6. 06As we continue to transform our organization, we may be unable to attract, develop and retain leaders and employees with the right skill sets and technical expertise
7. 07For several years we have experienced declining revenues and high debt levels, which has created uncertainties regarding our future prospects and ability to discharge our obligations. Despite recent improvements in our parent company's financial position, these uncertainties persist
8. 08We could be harmed if our reputation is damaged
9. 09We could be harmed by cyber-attacks
10. 10We could be harmed by outages in our network or various platforms, or other failures of our services
11. 11Several of our services continue to experience declining revenue, and our efforts to offset these declines may not be successful
12. 12Our ability to conduct our operations could have a material adverse impact on us if certain of our arrangements with third parties were terminated, including those further described below
13. 13Extreme weather conditions and climate changes could disrupt our operations, cause us to incur substantial additional capital and operating costs or negatively affect our business
14. 14Our environmental programs and disclosures may expose us to reputational, legal and business risks
15. 15Adverse developments impacting our non-consolidated affiliates could indirectly impact us
16. 16We face other business risks

Legal and Regulatory Risks

1. 17We are subject to an extensive, evolving regulatory framework that could create operational or compliance costs
2. 18Third-party content stored or transmitted on our networks could result in liability or otherwise damage our reputation
3. 19Pending legal proceedings against us or our affiliates could have a material adverse impact on us
4. 20We may not be successful in protecting and enforcing our intellectual property rights
5. 21Issues related to our use of artificial intelligence (AI) could give rise to legal or regulatory actions, damage our reputation or otherwise materially harm our business
6. 22We have been accused of infringing the intellectual property rights of others and will likely face similar accusations in the future
7. 23Failure to extend or renegotiate our collective bargaining agreements or work stoppages could have a material impact on us
8. 24Media reports concerning our legacy infrastructure could expose us to governmental actions, removal costs, litigation, compliance costs, penalties or reputational damage

Financial Risks

1. 25Our significant debt levels expose us to a broad range of risks
2. 26As of December 31, 2024, we had $2.0 billion of outstanding consolidated unsecured indebtedness (excluding finance lease obligations, unamortized discounts, net and unamortized debt issuance costs, and note payable-affiliate)
3. 27We expect to periodically require financing, and we cannot assure you we will be able to obtain such financing on terms that are acceptable to us, or at all
4. 28We are part of a highly complex debt structure, which could impact the rights of our investors
5. 29Under our and our affiliates’ consolidated debt and financing arrangements, the issuer of the debt is subject to various covenants and restrictions, the most restrictive of which pertain to the debt of Lumen Technologies, Inc. and Level 3 Financing
6. 30Lumen Technologies, Inc.’s senior secured credit facilities contain financial maintenance covenants
7. 31Our recent debt transactions may not achieve their anticipated benefits
8. 32Our cash flows may not adequately fund all of our cash requirements
9. 33Increases in costs for pension and healthcare benefits for our active and retired employees may have a material impact on us
10. 34If we are required to record additional intangible asset impairments, we will be required to record a significant charge to earnings and reduce our stockholder's equity
11. 35We regularly transfer our cash for centralized management by Lumen Technologies, which exposes us to certain risks
12. 36High inflation could continue to adversely impact us
13. 37Lapses in our disclosure controls and procedures or internal control over financial reporting could materially and adversely affect us
14. 38We face other financial risks
15. 39Unfavorable general economic, societal, health or environmental conditions could negatively impact us
16. 40Shareholder or debtholder activism efforts could cause a material disruption to our business