Worldcom Financials 2000 2002 A

8/10/2019 Worldcom Financials 2000 2002 A

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WorldCom, Inc.Balance Sheets December 31st

ASSETS Original ly Reported ASSETS Revised Current assets: 2000 2001 Current assets 2001 2002Cash and cash equivalents $761 $1,416 Cash and cash equivalents 1,290 2,820 Accounts receivable, net of allowance forbad debts of $1,532 in 2000 and $1,086 in2001

6,815 5,308Accounts receivable, net of allowancefor doubtful accounts of $1,817 in2002 and $2,023 in 2001

4,202 5,611

Deferred tax asset 172 251 Prepaid expenses 306 445

Other current assets 2,007 2,230 Other current assets 2,438 773Assets held for sale 130

Total current assets 9,755 9,205 Total current assets 8,366 9,649Property, plant and equipment, net 37,423 38,809 Property, plant and equipment, net 21,486 14,190

Investments 398 170Goodwill and other intangible assets 46,594 50,537 Intangible assets, net 2,284 1,514

Deferred taxes 270 279Other assets 5,131 5,363 Other assets 902 734

$98,903 $103,914 $33,706 $26,536LIABILITIES AND SHAREHOLDERS'INVESTMENT

LIABILITIES ANDSHAREHOLDERS DEFICIT

Current liabilities: Liabilities not subject to compromise

Short-term debt and current maturities oflong-term debt

$7,200 $172 Current liabilities

Accrued interest 446 618 Current portion of long-term debt 1,309 885 Accounts payable and accrued line costs 6,022 4,844 Accrued interest 538 35

Accounts payable 3,081 1,080Other current liabilities 4,005 3,576 Accrued access costs 3,914 2,068

Other current liabilities 4,474 3,354Liabilities of assets held for sale 74

Total current liabilities 17,673 9,210 Total current liabilities 13,390 7,422Long-term liabilities, less current portion:

Long-term debt 17,696 30,038Long-term debt, excluding current

portion 29,310 1,046

Deferred tax liability 3,611 4,066 Other liabilities 511 468Other liabilities 1,124 576 Liabilities subject to compromise 37,154

Total long-term liabilities 22,431 34,680Minority interests not subject tocom romise

Minority interests 2,592 101

Company-obligated mandatorilyredeemable preferred securities ofsubsidiary trust holding solelycompany guaranteed debentures

752

Mandatorily redeemable preferredstock issued by subsidiaries 665

Company obligated mandatorily redeemableand other preferred securities

798 1,993 Other minority interests 1,581 837

Minority interests subject tocom romise

Shareholders' investment:

Company-obligated mandatorily

redeemable preferred securities ofsubsidiary trust holding solelycompany guaranteed debentures

750

2000 and none in 2001; issued andoutstanding: 2,887,960,378 shares in 2000and none in 2001

29 -- Mandatorily redeemable preferredstock issued by subsidiaries 660

WorldCom group common stock, par value$.01 per share; authorized: none in 2000 and4,850,000,000

Preferred stockSeries D, E, and FJunior Convertible Preferred Stock($500 aggregate liquidation preferenceincluding $7 of accrued and unpaiddividends)

438

shares in 2001; issued and outstanding :none in 2000 and 2,967,436,680 shares in

2001

-- 30

Preferred stock subject tocompromiseSeries D, E, and FJunior Convertible Preferred Stock($494 aggregate liquidation preferenceincluding $1 of accrued and unpaiddividends)

494

WorldCom group common stock, parvalue $ 01 per share; authorized:


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Unrealized holding gain (loss) on marketableequity securities

345 -51

Treasury stock, at cost: 6,765,316shares of WorldCom group commonstock in 2002 and 2001; 270,611shares of MCI group common stock in2002 and 2001

(185 (185

Cumulative foreign currency translationadjustment

-817 -562 Accumulated other comprehensive loss (142 (358

Treasury stock, at cost, 6,765,316 shares ofWorldCom, Inc. in 2000, 6,765,316 shares of

-185 -185

Total shareholders' investment 55,409 57,930 Total shareholders deficit -12,941 -22,295$98,903 $103,914 $33,706 $26,536


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WorldCom, Inc.Operat ing Statements

For the Years Ending December 31stOrig inal ly Repor ted Rev is ed as o f A pr i l 15, 2004

2000 2001 2000 2001 2002Revenues $39,090 $35,179 Revenues $39,344 $37,668 $32,202Operating expenses: Operating expenses:Line costs 15,462 14,739 Access costs 16,903 16,015 14,651

Selling, general and administrative 10,597 11,046Selling, general andadministrative 10,337 10,660 9,179

Costs of services and products 5,092 5,377 4,339

Depreciation and amortization 4,878 5,880Depreciation andamortization 8,485 4,851 3,291

Other charges -- --Unclassified (income)ex ense 426 -383 -35

Property, plant andequipmentim airment char es 14,057 5,729 4,599

Goodwill andintangiblesim airment char es 33,123 6,863 400

Total Expenses 30,937 31,665 Total expenses 88,423 49,112 36,424Operating income 8,153 3,514 Operating loss - 49,079 - 11,444 - 4,222

Other income (expense):Other income (expense), net:

Interest expense -970 -1,533

Interest expense(contractual interest of$2,360 in 2002) 1,300 2,099 1,372

Miscellaneous 385 412

Miscellaneous(expense) income(includes a $2,250SEC fine in 2002 459 -921 -2,794

Income before income taxes, minority inteReorganization items,net (802

of accounting change 7,568 2,393

Loss from continuingoperations before incometaxes, minority interests and

cumulative effect of achange in accounting

rinci le -$49,920 -$14,474 -$9,190

Provision for income taxes 3,025 927Income tax expense (benefit)

-1,915 -503 54

Income before minority interests and cumu 4,543 1,466 -193

Minority interests -305 35Minority interests, net of tax

358 -702 -193

Income before cumulative effect of account 4,238 1,501 -193

Cumulative effect of accounting change (n -85 --

Loss from continuingoperations before cumulativeeffect of a change inaccounting principle

-48,363 -14,275 -9,051

-------- --------

Net loss from discontinued

operations -449 -1,323 -90Loss before cumulativeeffect of a change inaccountin rinci le -48,812 -15,598 (9,141

Cumulative effect of achange in accounting

rinci le -97 1 -32

Net income $4,153 $1,501 Net loss - 48,909 - 15,597 - 9,173

Distributions on preferredsecurities (contractualdistributions of $35 in 2002)

19 19

Net loss attributable tocommon shareholders -$48,909 -$15,616 -$9,192


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WorldCom, Inc.Statement of Cash Flows

For the Years Ending December 31st

Original l yReported

Revisedas of

Apri l 15,2004

Cash flows from operating activities: 2000 2001 OPERATING ACTIVITIES 2000 2001 2002 Net income $4,153 $1,501 Net loss -48,909 -15,597 -9,173Adjustments to reconcile net loss to net cash

provided by operating activities:Adjustments to reconcile net loss to net cash

provided by operating activities: Loss on impairment of investments 105 640 25

Cumulative effect of accounting change 85 --Cumulative effect of a change in accounting

principle 97 -1 32

Minority interests 305 -35 Minority interests, net of tax 358 -702 -193Depreciation and amortization 4,878 5,880 Depreciation and amortization 8,485 4,851 3,291

Provision for deferred income taxes 1,649 1,104Loss on impairment of long-lived assets,goodwill and intangibles 47,180 12,841 4,999

Realized gain on investments -636 -188 (24

Loss on sale of property, plant and equipment130 79 123

Bad debt provision 1,451 1,837 1,517

Deferred tax provision -2,169 -408 171

Bad debt write-off of employee loan 332

Non-cash reorganization charges 688

Other 67 112 73Change in assets and liabilities, net of effectof business combinations:

Changes in assets and liabilities, net ofacquisitions:

Accounts receivable, net -1,126 281 Accounts receivable -2,063 -509 -2,883Other current assets -797 164 Other current assets -830 457 1,462

Non current assets 4 350

Accounts payable and other current liabilities -1,050 -1,154Accounts payable and accrued access costs

668 -1,179 -325 All other operating activities -431 253 Other liabilities 353 320 1,144

Other -64 -58 -59

Net cash provided by operating activities 7,666 7,994Net cash provided by operating activities

4,227 2,845 1,200

Cash flows from investing activities INVESTING ACTIVITIES

Capital expenditures -11,484 -7,886Additions to property, plant and equipment

-11,668 -6,465 -1,660

Acquisitions and related costs -14 -206Proceeds from sale of property, plant andequipment 26 48 48

Increase in intangible assets -938 -694 Proceeds from sale of investments 699 561 57Decrease in other liabilities -839 -480 Purchase of investments -220 -95

All other investing activities -1,110 -424 Proceeds from disposition of assets 53Cash paid for acquisitions, net of cashreceived -171

Net cash used in investing activities -14,385 -9,690 Net cash used in investing activities -11,163 -6,122 -1,502

Cash flows from financing activities FINANCING ACTIVITIESPrincipal borrowings (repayments) on debt,net 6,377 3,031

Principal borrowings on debt7,771 11,830 2,851

Principal repayments on debt -1,439 -7,366 -715

Common stock issuance 585 124 Proceeds from exercise of stock options 569 109 15Distributions on mandatorily redeemable andother preferred securities

Dividends paid on common and preferredstock (2 -86 -159

and dividends paid on other equity securities -65 -154Redemption of preferred stock

-190 -200

Redemptions of preferred stock -190 -200 Debt issuance costs (27 (70 (50 All other financing activities -84 -272Net cash provided by (used in) financingactivities 6,623 2,529

Net cash provided by financing activities6,682 4,217 1,942

Effect of exchange rate changes on cash -19 38 Effect of exchange rate changes on cash -19 -32 -110Net increase (decrease) in cash and cashequivalents -115 871

Net change in cash and cash equivalents-273 908 1,530

Cash and cash equivalents at beginning ofperiod 876 761

CASH AND CASH EQUIVALENTS ATBEGINNING OF PERIOD 655 382 1,290

Deconsolidation of Embratel -- -216


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Cash and cash equivalents at end of period $761 $1,416CASH AND CASH EQUIVALENTS ATEND OF PERIOD $382 $1,290 $2,820

SUPPLEMENTAL CASH FLOWINFORMATION:Cash paid (refunds received) for taxes, net ofrefunds 422 144 (471Cash paid for interest, net of amountsca italized 1,233 1,831 1,306Cash paid for reorganization items 114

Non cash itemsConversion of Digex preferred stock tocommon stock 28Minimum pension liability adjustment 9 38Unrealized holding loss on investments 345 697 22Reclassification of pre-petition liabilities toliabilities sub ect to com romise 2,890

Documents

Worldcom Financials 2000 2002 A