Document and Entity Information Document - shares	9 Months Ended
Document and Entity Information Document - shares	Sep. 30, 2017	Nov. 02, 2017
Document and Entity Information
Entity Registrant Name	CENTURYLINK, INC
Entity Central Index Key	0000018926
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,069,003,333
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
OPERATING REVENUES	$ 4,034	$ 4,382	$ 12,333	$ 13,181
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	1,927	1,996	5,705	5,845
Selling, general and administrative	710	798	2,404	2,450
Depreciation and amortization	910	995	2,739	2,958
Total operating expenses	3,547	3,789	10,848	11,253
OPERATING INCOME	487	593	1,485	1,928
OTHER (EXPENSE) INCOME
Interest expense	(362)	(327)	(1,000)	(998)
Other income (expense), net	14	(17)	1	16
Total other expense, net	(348)	(344)	(999)	(982)
INCOME BEFORE INCOME TAX EXPENSE	139	249	486	946
Income tax expense	47	97	214	362
NET INCOME	$ 92	$ 152	$ 272	$ 584
BASIC AND DILUTED EARNINGS PER COMMON SHARE
BASIC (per share)	$ 0.17	$ 0.28	$ 0.50	$ 1.08
DILUTED (per share)	0.17	0.28	0.50	1.08
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.54	$ 0.54	$ 1.62	$ 1.62
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
BASIC (in shares)	541,521	539,806	541,113	539,411
DILUTED (in shares)	541,963	540,917	541,879	540,493

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 92	$ 152	$ 272	$ 584
Items related to employee benefit plans:
Change in net actuarial loss, net of $(15), $(16), $(57) and $(49) tax	36	28	97	82
Change in net prior service costs, net of $(1), $(1), $(3) and $(3) tax	2	2	6	6
Foreign currency translation adjustment and other, net of $—, $—, $— and $— tax	18	(4)	20	(9)
Other comprehensive income	56	26	123	79
COMPREHENSIVE INCOME	$ 148	$ 178	$ 395	$ 663

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Change in net actuarial loss, tax	$ (15)	$ (16)	$ (57)	$ (49)
Change in net prior service costs, tax	(1)	(1)	(3)	(3)
Foreign currency translation adjustment and other, tax	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 160	$ 222
Accounts receivable, less allowance of $165 and $178	1,888	2,017
Assets held for sale	7	2,376
Other	639	547
Total current assets	2,694	5,162
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment	41,352	39,194
Accumulated depreciation	(23,718)	(22,155)
Net property, plant and equipment	17,634	17,039
GOODWILL AND OTHER ASSETS
Goodwill	19,638	19,650
Restricted cash	6,004	2
Other intangible assets, less accumulated amortization of $2,256 and $2,042	1,539	1,531
Other, net	813	836
Total goodwill and other assets	30,208	24,816
TOTAL ASSETS	50,536	47,017
CURRENT LIABILITIES
Current maturities of long-term debt	124	1,503
Accounts payable	939	1,179
Accrued expenses and other liabilities
Salaries and benefits	679	802
Income and other taxes	357	301
Interest	309	260
Other	216	213
Current liabilities associated with assets held for sale	0	419
Advance billings and customer deposits	642	672
Total current liabilities	3,266	5,349
LONG-TERM DEBT	24,854	18,185
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes, net	3,128	3,471
Benefit plan obligations, net	5,183	5,527
Other	1,145	1,086
Total deferred credits and other liabilities	9,456	10,084
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS' EQUITY
Preferred stock—non-redeemable, $25.00 par value, authorized 2,000 and 2,000 shares, issued and outstanding 7 and 7 shares	0	0
Common stock, $1.00 par value, authorized 1,600,000 and 1,600,000 shares, issued and outstanding 549,654 and 546,545 shares	550	547
Additional paid-in capital	14,370	14,970
Accumulated other comprehensive loss	(1,994)	(2,117)
Retained earnings (accumulated deficit)	34	(1)
Total stockholders' equity	12,960	13,399
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	50,536	47,017
Customer relationships
Customer relationships, less accumulated amortization of $6,902 and $6,318	$ 2,214	$ 2,797

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable, allowance	$ 165	$ 178
Preferred stock-non-redeemable, par value (in dollars per share)	$ 25.00	$ 25.00
Preferred stock-non-redeemable, shares authorized	2,000	2,000
Preferred stock-non-redeemable, shares issued	7	7
Preferred stock-non-redeemable, shares outstanding	7	7
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	1,600,000	1,600,000
Common stock, shares issued	549,654	546,545
Common stock, shares outstanding	549,654	546,545
Customer relationships
Finite-lived intangible assets, accumulated amortization	$ 6,902	$ 6,318
Other intangible assets
Finite-lived intangible assets, accumulated amortization	$ 2,256	$ 2,042

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES
Net income	$ 272	$ 584
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,739	2,958
Deferred income taxes	(243)	32
Loss on the sale of data centers and colocation business	82	0
Impairment of assets held for sale	11	1
Provision for uncollectible accounts	127	144
Net loss on early retirement of debt	5	27
Share-based compensation	64	60
Changes in current assets and liabilities:
Accounts receivable	2	(158)
Accounts payable	(93)	52
Accrued income and other taxes	103	1
Other current assets and liabilities, net	(221)	(24)
Retirement benefits	(181)	(143)
Changes in other noncurrent assets and liabilities, net	(54)	(41)
Other, net	87	19
Net cash provided by operating activities	2,700	3,512
INVESTING ACTIVITIES
Payments for property, plant and equipment and capitalized software	(2,363)	(2,010)
Cash paid for acquisitions	(5)	(24)
Proceeds from sale of data centers and colocation business, less cash sold	1,467	0
Proceeds from sale of property	51	22
Net cash used in investing activities	(850)	(2,012)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	6,608	2,161
Proceeds from financing obligation (Note 3)	356	0
Payments of long-term debt	(1,612)	(2,436)
Net payments on credit facility and revolving line of credit	(370)	(325)
Dividends paid	(881)	(876)
Proceeds from issuance of common stock	5	5
Shares withheld to satisfy tax withholdings	(16)	(15)
Net cash provided by (used in) financing activities	4,090	(1,486)
Net increase in cash, cash equivalents and restricted cash	5,940	14
Cash, cash equivalents and restricted cash at beginning of period	224	128
Cash, cash equivalents and restricted cash at end of period	6,164	142
Supplemental cash flow information:
Income taxes paid, net	(378)	(344)
Interest paid (net of capitalized interest of $61 and $38)	$ (917)	$ (922)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement of Cash Flows [Abstract]
Interest paid, capitalized interest	$ 61	$ 38

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions	Total	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	ACCUMULATED OTHER COMPREHENSIVE LOSS	RETAINED EARNINGS
Balance at beginning of period at Dec. 31, 2015		$ 544	$ 15,178	$ (1,934)	$ 272
Increase (Decrease) in Stockholders' Equity
Issuance of common stock through dividend reinvestment, incentive and benefit plans		3	5
Shares withheld to satisfy tax withholdings			(15)
Share-based compensation and other, net			59
Dividends declared			(106)		(777)
Other comprehensive income	$ 79			79
Net income	584				584
Balance at end of period at Sep. 30, 2016	13,892	547	15,121	(1,855)	79
Balance at beginning of period at Jun. 30, 2016				(1,881)
Increase (Decrease) in Stockholders' Equity
Other comprehensive income	26
Net income	152
Balance at end of period at Sep. 30, 2016	13,892	547	15,121	(1,855)	79
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting \| Restatement adjustment \| Accounting Standards Update 2016-09					0
Balance at beginning of period at Dec. 31, 2016	13,399	547	14,970	(2,117)	(1)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock through dividend reinvestment, incentive and benefit plans		3	5
Shares withheld to satisfy tax withholdings			(16)
Share-based compensation and other, net			59
Dividends declared			(648)		(240)
Other comprehensive income	123			123
Net income	272				272
Balance at end of period at Sep. 30, 2017	12,960	550	14,370	(1,994)	34
Balance at beginning of period at Jun. 30, 2017				(2,050)
Increase (Decrease) in Stockholders' Equity
Other comprehensive income	56
Net income	92
Balance at end of period at Sep. 30, 2017	$ 12,960	$ 550	$ 14,370	$ (1,994)	34
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting \| Restatement adjustment \| Accounting Standards Update 2016-09					$ 3

Background

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Background

General

We are an integrated communications company engaged primarily in providing an array of services to our residential and business customers. Our communications services include local and long-distance voice, broadband, Multi-Protocol Label Switching ("MPLS"), private line (including special access), Ethernet, hosting (including cloud hosting and managed hosting), data integration, video, wavelength, network, public access, Voice over Internet Protocol ("VoIP"), information technology and other ancillary services.

On November 1, 2017, we acquired Level 3 Communications, Inc. ("Level 3") in a cash and stock transaction. See Note 2—Acquisition of Level 3 for additional information. On May 1, 2017, we sold our data centers and colocation business to a consortium led by BC Partners, Inc. and Medina Capital for a combination of cash and equity. See Note 3—Sale of Data Centers and Colocation Business for additional information.

Basis of Presentation

Our consolidated balance sheet as of December 31, 2016, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission ("SEC"); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. We believe that these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations and cash flows for the first nine months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated.

To simplify the overall presentation of our consolidated financial statements, we report immaterial amounts attributable to noncontrolling interests in certain of our subsidiaries as follows: (i) income attributable to noncontrolling interests in other income (expense), net, (ii) equity attributable to noncontrolling interests in additional paid-in capital and (iii) cash flows attributable to noncontrolling interests in other, net financing activities.

We pay dividends out of retained earnings to the extent we have retained earnings on the date the dividend is declared. If the dividend is in excess of our retained earnings on the declaration date, then the excess is drawn from our additional paid-in capital.

We reclassified certain prior period amounts to conform to the current period presentation, including the categorization of our revenues and our segment reporting. See Note 9—Segment Information for additional information. These changes had no impact on total operating revenues, total operating expenses or net income for any period.

Recently Adopted Accounting Pronouncements

In the second quarter of 2017, we adopted Accounting Standards Update ("ASU") 2016-18, "Restricted Cash (a consensus of the Financial Accounting Standards Board ("FASB") Emerging Issues Task Force)" ("ASU 2016-18"). In the first quarter of 2017, we adopted ASU 2016-09, “Improvements to Employee Share Based Compensation” (“ASU 2016-09”) and ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). Each of these is described further below.

Restricted Cash

On November 17, 2016, the FASB issued ASU 2016-18, which requires that a statement of cash flows explain the change in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents as compared to the previous presentation, which explains only the change in cash and cash equivalents. ASU 2016-18 is effective January 1, 2018, but early adoption is permitted and requires retrospective application of the requirements to all previous periods presented. We early adopted ASU 2016-18 in the second quarter of 2017.

Prior to the financing transaction we entered into in the second quarter of 2017 related to the Level 3 acquisition, as further described in Note 4—Long-Term Debt and Credit Facilities, our restricted cash balances have been immaterial. With the adoption of ASU 2016-18, our "net increase in cash, cash equivalents and restricted cash" presented in our consolidated statements of cash flows for the nine months ended September 30, 2017 increased by $6 billion as a result of the inclusion of the restricted cash related to the Level 3 financing transaction, with a corresponding increase in net cash generated from financing activities. On November 1, 2017, the escrowed funds were released upon the consummation of the Level 3 acquisition.

Share-based Compensation

ASU 2016-09 modified the accounting and associated income tax accounting for share-based compensation in order to reduce the cost and complexity associated with previous U.S. GAAP. The primary provisions of ASU 2016-09 that affect our consolidated financial statements for the three and nine months ended September 30, 2017 are:

1.

A reclassification of the income tax effect associated with the difference between the expense recognized for share-based payments and the related tax deduction from additional paid-in capital to income tax expense. This change was applied on a prospective basis and resulted in no change in income tax expense for the three months ended September 30, 2017 and a $6 million increase in income tax expense for the nine months ended September 30, 2017.


2.	We elected to change our accounting policy to account for forfeitures of share-based payment grants as they occur as opposed to our previous policy of estimating the forfeitures on the grant date. The cumulative effect of adopting this policy as of January 1, 2017 resulted in an increase of $3 million, net of a $2 million tax effect, in retained earnings (accumulated deficit).

Net Periodic Pension and Postretirement Benefit Costs

ASU 2017-07 modified the presentation of net periodic pension and postretirement benefit costs and requires the service cost component to be reported separately from the other components in order to provide more useful information. Under ASU 2017-07, the service cost component of net periodic pension and postretirement benefit costs is required to be presented in the same expense category as the related salary and wages for the employee. The other components of the net periodic pension and postretirement benefit costs are required to be recognized below operating income in other income (expense), net in our consolidated statements of operations. This change was applied on a retrospective basis to all previous periods to match the current period presentation. This retrospective application resulted in a $2 million and $11 million reduction in operating income and a corresponding decrease in total other expense, net for the three and nine months ended September 30, 2016, respectively.

Recent Accounting Pronouncements

Goodwill Impairment

On January 26, 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the impairment testing for goodwill by changing the measurement for goodwill impairment. Under current rules, we are required to compute the implied fair value of goodwill to measure the impairment amount if the carrying value of a reporting unit exceeds its fair value. Under ASU 2017-04, the goodwill impairment charge will equal the excess of the reporting unit carrying value above fair value, limited to the amount of goodwill assigned to the reporting unit.

We are required to adopt the provisions of ASU 2017-04 for any goodwill impairment tests, including our required annual test, occurring after January 1, 2020, but have the option to early adopt for any impairment test that we are required to perform. We have not determined if we will elect to early adopt the provisions of ASU 2017-04. The provisions of ASU 2017-04 would not have affected our last goodwill impairment assessment, but no assurance can be provided that the simplified testing methodology will not affect our goodwill impairment assessment in the future.

Income Taxes

On October 24, 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” ("ASU 2016-16"). ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among our subsidiaries. After adoption of this ASU, the income tax effects associated with these asset transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or over the remaining useful life of the asset. We are currently reviewing the requirements of this ASU and evaluating the impact on our consolidated financial statements.

We expect to adopt the provisions of ASU 2016-16 on the required adoption date of January 1, 2018. The impact of adopting ASU 2016-16, if any, will be recognized through a cumulative adjustment to (accumulated deficit) retained earnings as of the date of adoption.

Financial Instruments

On June 16, 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). The primary impact of ASU 2016-13 for us is a change in the model for the recognition of credit losses related to our financial instruments from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires our management team to estimate the total credit losses expected on the portfolio of financial instruments. We are currently reviewing the requirements of the standard and evaluating the impact on our consolidated financial statements.

We are required to adopt the provisions of ASU 2016-13 effective January 1, 2020, but could elect to early adopt the provisions as of January 1, 2019. We expect to recognize the impacts of adopting ASU 2016-13 through a cumulative adjustment to (accumulated deficit) retained earnings as of the date of adoption. As of the date of this report, we have not yet determined the date we will adopt ASU 2016-13.

Leases

On February 25, 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The core principle of ASU 2016-02 will require lessees to present right-of-use assets and lease liabilities on their balance sheets for operating leases, which are currently not reflected on their balance sheets.

ASU 2016-02 is effective for annual and interim periods beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. Upon adoption of ASU 2016-02, we are required to recognize and measure leases at the beginning of the earliest period presented in our consolidated financial statements using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply.

We are currently evaluating new lease administrative and accounting systems and are in the process of developing an implementation plan. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019 and the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded. Although we believe it is premature as of the date of this report to provide any estimate of the impact of adopting ASU 2016-02, we do expect that it will have a material impact on our consolidated financial statements. Additionally, upon the January 1, 2019, implementation of ASU 2016-02, accounting for the failed-sale-leaseback transaction described in Note 3—Sale of Data Centers and Colocation Business will no longer be applicable based on our facts and circumstances, and the real estate assets and corresponding financing obligation will be derecognized from our consolidated balance sheet.

Revenue Recognition

On May 28, 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 replaces virtually all existing GAAP on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. We currently do not defer any contract acquisition costs, but we expect we will defer certain contract acquisition costs in the future, which initially could have the impact of lowering our operating expenses. We currently defer contract fulfillment costs only to the extent of any deferred revenue. Under ASU 2014-09, in certain transactions our deferred contract fulfillment costs could exceed our deferred revenues, which could result in an increase in deferred costs, and could also impact the timing on our recognition of these deferred costs.

On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year until January 1, 2018, which is the date we plan to adopt this standard. ASU 2014-09 may be adopted by applying the provisions of this standard on a retrospective basis to the periods included in the financial statements or on a modified retrospective basis, which would result in the recognition of a cumulative effect of adopting ASU 2014-09 in the first quarter of 2018. We have completed our initial assessment of our business and systems requirements, and we are currently developing and implementing a new revenue recognition system to comply with the requirements of ASU 2014-09. In addition, we are undergoing a review of our existing internal controls relating to our revenue recognition and financial reporting processes, and we expect to update or implement additional controls in applying the five-step model for recognizing revenue. We currently plan to adopt the new revenue recognition standard under the modified retrospective transition method. As of the date of this report, we are not able to provide reasonably accurate estimates of the impact of implementing ASU 2014-09 on the timing of our revenue recognition or the transition adjustment that will be recorded to equity on January 1, 2018.

Acquisition of Level 3	9 Months Ended
Acquisition of Level 3	Sep. 30, 2017
Business Combinations [Abstract]
Business Combination Disclosure	Acquisition of Level 3 On November 1, 2017, CenturyLink acquired Level 3 through successive merger transactions, including a merger of Level 3 with and into a merger subsidiary, which survived such merger as our indirect wholly-owned subsidiary under the name of Level 3 Parent, LLC. As a result of the acquisition, Level 3 shareholders received $26.50 per share in cash and 1.4286 shares of CenturyLink common stock, with cash paid in lieu of fractional shares, for each outstanding share of Level 3 common stock they owned at closing, subject to certain limited exceptions. Upon closing, CenturyLink shareholders owned approximately 51% and Level 3 shareholders owned approximately 49% of the combined company. At closing, we assumed Level 3's long-term debt of approximately $11 billion. In addition, each outstanding Level 3 restricted stock unit award granted prior to April 1, 2014 or granted to an outside director of Level 3 was converted into the right to receive $26.50 in cash and 1.4286 shares of CenturyLink common stock (and cash in lieu of fractional shares) with respect to each Level 3 share covered by such award, less applicable tax withholdings, and each outstanding Level 3 restricted stock unit award granted on or after April 1, 2014 (other than those granted to outside directors of Level 3) was converted into a CenturyLink, Inc. restricted stock unit award using a ratio of 2.8386 to 1 as determined in accordance with a formula set forth in the merger agreement. The consideration for this acquisition included $9.6 billion in cash payments and approximately 517 million shares of CenturyLink common stock (valued at $9.8 billion based on the $18.99 closing price of our stock on October 31, 2017) issued to Level 3 stockholders at closing. Our final determination of aggregate consideration will also include the estimated fair value of the pre-combination portion of certain assumed share-based compensation awards. The premium paid by CenturyLink in this transaction is attributable to strategic benefits, including enhanced financial and operational scale, market diversification and improved networks. None of the goodwill associated with this transaction is deductible for income tax purposes. The aggregate cash payments required to be paid on or about the closing date were funded with the proceeds of $7.945 billion of term loans and $400 million of funds borrowed under our new revolving credit facility discussed further herein, together with other available funds, which included $1.825 billion of Level 3 Parent, LLC's available funds. For additional information regarding CenturyLink’s financing of the Level 3 acquisition see Note 4—Long-Term Debt and Credit Facilities. Following the Level 3 acquisition, (i) Standard and Poor's downgraded CenturyLink, Inc.'s current unsecured long-term debt rating to B+ (with a stable outlook); (ii) Moody's Investors Services downgraded CenturyLink, Inc.'s current unsecured long-term debt rating to B2 (with a negative outlook); and (iii) Fitch's Ratings downgraded CenturyLink, Inc.'s current unsecured long-term debt rating to BB (with a stable outlook). Also subsequent to the Level 3 acquisition, (i) Standard and Poor's rated CenturyLink, Inc.'s new secured long-term debt at BBB- (with a stable outlook); (ii) Moody's Investors Services rated CenturyLink, Inc.'s new secured long-term debt at Ba3 (with a negative outlook); and (iii) Fitch's Ratings rated CenturyLink, Inc.'s new secured long-term debt at BB+ (with a stable outlook). Following the Level 3 acquisition, Qwest Corporation's current unsecured senior debt rating of Ba1 was downgraded to Ba2 with a negative outlook by Moody's Investors Service, Inc., and its current unsecured senior debt rating of BBB- was downgraded to BB+ with a stable outlook by Fitch Ratings. Standard and Poor's reaffirmed its rating of BBB- with a stable outlook for Qwest Corporation's current unsecured senior debt. The consolidated results of operations of Level 3 will be included in our consolidated results of operations beginning November 1, 2017. The assets acquired and liabilities assumed of Level 3 will be recognized at their estimated acquisition date fair values. The estimation of such fair values and the related estimation of lives of depreciable tangible assets and amortizable intangible assets will require significant judgment. Due to the timing of the Level 3 acquisition, as of the date of this report, we cannot yet make with reasonable accuracy estimates of certain components of the aggregate acquisition consideration and the fair values of assets acquired and liabilities assumed. The final determinations of aggregate acquisition consideration and our estimates of acquisition date fair value will be determined based in part upon an analysis, which is expected to be completed in 2018. As of September 30, 2017, we had recognized approximately $70 million in cumulative merger-related transaction costs, including investment banker and legal fees. In the first half of 2017, we granted less than 1 million shares of restricted stock and approximately $21 million of deferred cash compensation awards to certain executive officers and other key employees as part of a retention program in connection with our acquisition of Level 3. The shares of restricted stock will vest in equal installments on the first, second and third anniversaries of the merger closing date. Each employee receiving a deferred cash award is expected to receive one-half of the award no later than 15 days after the closing date and receive the other half on the one year anniversary of the merger closing date, subject to continued employment with us. Both the restricted stock grant and the deferred cash award will accelerate if we terminate the recipient without cause or under certain other conditions. During the nine months ended September 30, 2017, we recorded compensation expense of $17 million related to this retention program (which does not reflect compensation expense separately incurred by Level 3 under its distinct retention plan).

Sale of Data Centers and Colocation Business

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Sale of Data Centers and Colocation Business

On May 1, 2017, we sold our data centers and colocation business to a consortium led by BC Partners, Inc. and Medina Capital in exchange for cash and a minority stake in the limited partnership that owns the consortium's newly-formed global secure infrastructure company, Cyxtera Technologies ("Cyxtera").

We received pre-tax cash proceeds of $1.8 billion, and we have valued our minority stake at $150 million, which was based upon the total equity contribution to the limited partnership on the date made. Due to the sale and related restructuring actions we have taken regarding certain subsidiaries involved in the data centers and colocation business, we have estimated a cumulative current tax impact relating to the sale totaling $65 million, $18 million of which was accrued in 2016 and $47 million of which was accrued in the first half of 2017.

In connection with our sale of the data centers and colocation business to Cyxtera, we agreed to lease back from Cyxtera a portion of the data center space to provide data hosting services to our customers. Because we have continuing involvement in the business through our minority stake in Cyxtera's parent, we do not meet the requirements for a sale-leaseback transaction as described in ASC 840-40, Leases - Sale-Leaseback Transactions. Under the failed-sale-leaseback accounting model, we are deemed under GAAP to still own certain real estate assets sold to Cyxtera, which we must continue to reflect on our consolidated balance sheet and depreciate over the assets' remaining useful life. We must also treat a certain amount of the pre-tax cash proceeds from the sale of the assets as though it were the result of a financing obligation on our consolidated balance sheet, and our consolidated results of operations must include imputed revenue associated with the portion of the real estate assets that we have not leased back and imputed interest expense on the financing obligation. A portion of the rent payments required under our leaseback arrangement with Cyxtera are recognized as reductions of the financing obligation, resulting in lower recognized rent expense than the amounts actually paid each period. At the end of the lease term, the remaining imputed financing obligation and the remaining net book value of the real estate assets will be derecognized. Please see "Leases" (ASU 2016-02) in Note 1—Background for additional information on the impact the new lease standard will have on the accounting for the failed-sale-leaseback.

The following table reflects the assets sold to and the liabilities assumed by Cyxtera on May 1, 2017, including our most current estimates of the impact of failed-sale-leaseback:



	Dollars in millions
Goodwill	$	1,142
Property, plant and equipment	1,051
Other intangible assets	249
Other assets	66
Less assets recorded as part of the failed-sale-leaseback	(526		)
Total net amount of assets derecognized	$	1,982

Capital lease obligations	$	294
Other liabilities	274
Less imputed financing obligations from the failed-sale-leaseback	(628		)
Total net imputed liabilities recognized	$	(60	)

In addition, based on our most current estimates, the failed-sale-leaseback accounting treatment had the following effects on our consolidated results of operations for the three and nine months ended September 30, 2017, respectively:



	Positive (Negative) Impact to Net Income
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
	(Dollars in millions)
Increase in revenue	$	19		31
Decrease in cost of sales	6			9
Decrease (increase) in loss on sale of business included in selling, general and administrative expense	15			(102	)
Increase in depreciation expense (one-time)	—			(44	)
Increase in depreciation expense (ongoing)	(19		)	(29	)
Increase in interest expense	(17		)	(25	)
(Increase) decrease in income tax expense	(3		)	60
Increase (decrease) in net income	$	1		(100	)

After factoring in the costs to sell the data centers and colocation business, excluding the estimated impacts from the failed-sale-leaseback accounting treatment, the sale resulted in a $20 million gain as a result of the aggregate value of the proceeds we received exceeding the carrying value of the assets sold and liabilities assumed. Based on our most current estimates of the fair market values of the failed-sale-leaseback assets, the failed-sale-leaseback accounting treatment resulted in a loss of $102 million as a result of the requirement to treat a certain amount of the pre-tax cash proceeds from the sale of the assets as though it were the result of a financing obligation. The combined net loss of $82 million is included in selling, general and administrative expenses in our consolidated statement of operations for the nine months ended September 30, 2017. The sale also resulted in a significant capital loss carryforward, which will be entirely offset by a valuation allowance due to our determination that we are not likely to be able to utilize this carryforward prior to its expiration.

We evaluated our minority stake in the limited partnership and determined that we were not the primary beneficiary of the entity. As a result, we classified our $150 million investment in the limited partnership in other assets on our consolidated balance sheet as of September 30, 2017. In addition to our investment, we have a receivable for $80 million from Cyxtera, classified primarily in other current assets on our consolidated balance sheet as of September 30, 2017. We will continue to have an ongoing obligation to Cyxtera related to our lease of data center space from them. From May 1, 2017 through September 30, 2017, we paid rent to Cyxtera totaling $40 million.

Effective November 3, 2016, which is the date we entered into the agreement to sell our data centers and colocation business, we ceased recording depreciation of the property, plant and equipment to be sold and amortization of the business's intangible assets in accordance with applicable accounting rules. Otherwise, we estimate that we would have recorded additional depreciation and amortization expense of $67 million from January 1, 2017 through May 1, 2017.

Long-Term Debt and Credit Facilities

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Long-Term Debt and Credit Facilities

Long-term debt, including unamortized discounts and premiums and unamortized debt issuance costs, consisting of borrowings by CenturyLink, Inc. and certain of its subsidiaries, including CenturyLink Escrow, LLC, Qwest Corporation, Qwest Capital Funding, Inc. and Embarq Corporation and its subsidiaries ("Embarq"), were as follows:



	Interest Rates	Maturities	As of September 30, 2017			As of December 31, 2016
			(Dollars in millions)
CenturyLink, Inc.
Senior notes	5.625% - 7.650%	2019 - 2042	$	8,125		8,975
2012 credit facility and revolving line of credit⁽¹⁾	—	2019	—			370
2012 term loan	2.990%	2019	319			336
Subsidiaries
CenturyLink Escrow, LLC
Term loan B⁽²⁾	2.75%	2025	6,000			—
Qwest Corporation
Senior notes	6.125% - 7.750%	2021 - 2057	7,294			7,259
Term loan	2.990%	2025	100			100
Qwest Capital Funding, Inc.
Senior notes	6.500% - 7.750%	2018 - 2031	981			981
Embarq Corporation and subsidiaries
Senior note	7.995%	2036	1,485			1,485
First mortgage bonds	7.125% - 8.770%	2019 - 2025	151			223
Other	9.000%	2019	150			150
Capital lease and other obligations⁽³⁾	Various	Various	740			440
Unamortized discounts, net			(164		)	(133	)
Unamortized debt issuance costs			(203		)	(193	)
Total long-term debt			24,978			19,993
Less current maturities not associated with assets held for sale			(124		)	(1,503	)
Less capital lease obligations associated with assets held for sale			—			(305	)
Long-term debt, excluding current maturities and capital leases obligations associated with assets held for sale			$	24,854		18,185

______________________________________________________________________

⁽¹⁾

The aggregate amount outstanding on our 2012 credit facility and revolving line of credit borrowings at December 31, 2016 was $370 million with a weighted-average interest rate of 4.500%. At September 30, 2017, we had no borrowings outstanding under our 2012 credit facility and revolving line of credit. These amounts change on a regular basis. As described under "2017 Credit Agreement" below, we discharged and terminated our 2012 credit facility on November 1, 2017.


⁽²⁾	Represents the fixed rate and the obligor in effect at September 30, 2017. Please see "2017 Credit Agreement" for further information on our term loans and revolving credit facility under our June 19, 2017 credit agreement.

⁽³⁾

As a result of not meeting the sale leaseback accounting requirements, we must treat a certain amount of the pre-tax cash proceeds from the sale of our real estate assets as though it were the result of a financing obligation on our consolidated balance sheet. Also, the capital lease obligations that were shown as held for sale as of December 31, 2016 are retained and revalued. Please see Note 3—Sale of Data Centers and Colocation Business for additional information on our most current estimate of the financing obligation.

New Issuances

On April 27, 2017, Qwest Corporation issued $575 million aggregate principal amount of 6.75% Notes due 2057 and, on May 5, 2017, issued an additional $85 million aggregate principal amount of such notes pursuant to an over-allotment option in exchange for aggregate net proceeds, after deducting underwriting discounts and other expenses, of $638 million. All of the 6.75% Notes are senior unsecured obligations and may be redeemed by Qwest Corporation, in whole or in part, on or after June 15, 2022, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

Repayments

On August 1, 2017, subsidiaries of Embarq Corporation paid at maturity the $72 million principal amount and accrued and unpaid interest due under their 8.77% Notes.

On June 15, 2017, CenturyLink, Inc. paid at maturity the $350 million principal and accrued and unpaid interest due under its 5.15% Notes.

On May 9, 2017, Qwest Corporation redeemed $125 million aggregate principal amount of the remaining $288 million of its 7.5% Notes due 2051, which resulted in an immaterial loss.

On May 4, 2017, Qwest Corporation redeemed all $500 million of its 6.5% Notes due 2017, which resulted in an immaterial loss.

On April 3, 2017, CenturyLink, Inc. paid at maturity the $500 million principal and accrued and unpaid interest due under its 6.00% Notes.

2017 Credit Agreement

As further described in Note 2—Acquisition of Level 3, we completed our acquisition of Level 3 on November 1, 2017. To finance a substantial portion of our acquisition of Level 3, on June 19, 2017, we caused our wholly-owned subsidiary, CenturyLink Escrow, LLC (the "Escrow Borrower"), to enter into a credit agreement (the "Credit Agreement") with, among others, Bank of America, N.A., as administrative agent and collateral agent, providing for $9.945 billion in senior secured credit facilities (the "New Senior Secured Credit Facilities"). These facilities consist of:


•	a $2 billion revolving credit facility (“the New Revolving Credit Facility”), which has 18 lenders, each with commitments ranging from $32.8 million to $167.8 million, which we initially drew upon on November 1, 2017;


•	a $1.575 billion senior secured Term Loan A credit facility, which has 17 lenders, each with commitments ranging from $28.6 million to $132.2 million, which we drew in full on November 1, 2017;


•	a $370 million senior secured Term Loan A-1 credit facility with CoBank, ACB, which we drew in full on November 1, 2017; and


•	a $6 billion senior secured Term Loan B credit facility, the proceeds of which were fully pre-funded less a discount into escrow on June 19, 2017 and released to us on November 1, 2017. These escrowed debt proceeds, together with pre-funded amounts in escrow to cover interest payments, are reflected as "restricted cash" in our consolidated balance sheet as of September 30, 2017.

We used the proceeds of borrowings under the New Senior Secured Credit Facilities, together with other available funds (including amounts received from Level 3), (i) to fund the cash portion of the consideration and transaction costs payable in connection with the Level 3 acquisition and (ii) to repay all indebtedness outstanding under our 2012 term loan, and we terminated our 2012 credit facility, the revolving line of credit and our 2012 term loan. The New Revolving Credit Facility and borrowings under the Term Loan A and A-1 facilities will mature on November 1, 2022. Borrowings under the Term Loan B facility will mature on January 31, 2025.

By virtue of merging the Escrow Borrower into CenturyLink, Inc. on November 1, 2017, CenturyLink, Inc. assumed all rights and obligations under the Credit Agreement, including the right to borrow funds under the New Revolving Credit Facility on the terms and conditions specified in the Credit Agreement.

Loans under the Term Loan A and A-1 facilities and the New Revolving Credit Facility bear interest at a rate equal to, at our option, the London Interbank Offered Rate (“LIBOR”) or the alternative base rate (each as defined in the Credit Agreement) plus an applicable margin between 2.25% to 3.00% per annum for LIBOR loans and 1.25% to 2.00% per annum for alternative base rate loans, depending on our then current total leverage ratio. Borrowings under the Term Loan B facility bore interest at 1.375% per annum between June 19, 2017 and July 18, 2017, at 2.75% per annum from July 19, 2017 through the date of closing of the Level 3 acquisition and will bear interest of LIBOR plus 2.75% per annum thereafter. Loans under each of the term loan facilities require certain specified quarterly amortization payments and certain specified mandatory prepayments in connection with certain asset sales and debt issuances and out of excess cash flow, among other things, subject in each case to certain significant exceptions.

All of our obligations under the New Senior Secured Credit Facilities are guaranteed by certain of our subsidiaries. The guarantees by certain of those guarantors are secured by a first priority security interest in substantially all assets (including certain subsidiaries' stock) directly owned by them, subject to certain exceptions and limitations.

The New Revolving Credit Facility replaced our 2012 revolving credit facility. A portion of the New Revolving Credit Facility in an amount not to exceed $100 million is available for swingline loans and a portion in an amount not to exceed $400 million is available for the issuance of letters of credit. On November 1, 2017, we discharged our 2012 term loan scheduled to mature in 2019 and entered into Term Loan A-1 with the same lender. On such date, we also paid certain specified financing fees totaling $239 million under the New Senior Secured Credit Facilities.

With respect to the Term Loan A and A-1 facilities and the New Revolving Credit Facility, the Credit Agreement requires us to maintain (i) a maximum total leverage ratio of not more than 5.00 to 1.00 between the closing date of the Level 3 acquisition and the second anniversary thereof and 4.75 to 1.00 thereafter and (ii) a minimum consolidated interest coverage ratio of at least 2.00 to 1.00, with such ratios being determined and calculated in the manner described in the Credit Agreement.

The New Senior Secured Credit Facilities contain various representations and warranties and affirmative and negative covenants. Such covenants include, among other things and subject to certain significant exceptions, restrictions on our ability to declare or pay dividends, repurchase stock, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with its affiliates, dispose of assets and merge or consolidate with any other person.

Covenants

As of September 30, 2017, we believe we were in compliance with the provisions and covenants contained in our 2012 revolving credit facility, Credit Agreement and other material debt agreements.

Level 3 Debt

Level 3 and its financing subsidiary are indebted under certain senior notes and term loans, all of which contain various affirmative and negative covenants. Additional information about this indebtedness can be found elsewhere herein and in Level 3's filings with the SEC.

Severance and Leased Real Estate

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Severance and Leased Real Estate

Periodically, we reduce our workforce and accrue liabilities for the related severance costs. These workforce reductions result primarily from the progression or completion of our post-acquisition integration plans, increased competitive pressures, cost reduction initiatives, process improvements through automation and reduced workload demands due to the loss of customers purchasing certain services.

We report severance liabilities within accrued expenses and other liabilities - salaries and benefits in our consolidated balance sheets and report severance expenses in selling, general and administrative expenses in our consolidated statements of operations. As described in Note 9—Segment Information, we do not allocate these severance expenses to our segments.

We have recognized liabilities to reflect our estimates of the fair values of the existing lease obligations for real estate which we have ceased using, net of estimated sublease rentals. Our fair value estimates were determined using discounted cash flow methods. We recognize expense to reflect accretion of the discounted liabilities and periodically we adjust the expense when our actual subleasing experience differs from our initial estimates. We report the current portion of liabilities for ceased-use real estate leases in accrued expenses and other liabilities - other and report the noncurrent portion in deferred credits and other liabilities - other in our consolidated balance sheets. We report the related expenses in selling, general and administrative expenses in our consolidated statements of operations. At September 30, 2017, the current and noncurrent portions of our leased real estate accrual were $8 million and $53 million, respectively. The remaining lease terms range from 0.7 years to 8.2 years, with a weighted-average of 7.2 years.

Changes in our accrued liabilities for severance expenses and leased real estate were as follows:



	Severance			Real Estate
	(Dollars in millions)
Balance at December 31, 2016	$	98		67
Accrued to expense	19			3
Payments, net	(98		)	(9	)
Reversals and adjustments	—			—
Balance at September 30, 2017	$	19		61

Employee Benefits

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Employee Benefits

Net periodic benefit expense (income) for our qualified and non-qualified pension plans included the following components:



	Pension Plans
	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions)
Service cost	$	16		16		47		48
Interest cost	102			107		308		321
Expected return on plan assets	(166		)	(183	)	(499	)	(550	)
Recognition of prior service credit	(2		)	(2	)	(6	)	(6	)
Recognition of actuarial loss	51			44		154		131
Net periodic pension benefit expense (income)	$	1		(18	)	4		(56	)

Net periodic benefit expense for our post-retirement benefit plans included the following components:



	Post-Retirement Benefit Plans
	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(Dollars in millions)
Service cost	$	4	4		13		14
Interest cost	25		29		75		84
Expected return on plan assets	—		(2	)	(1	)	(6	)
Recognition of prior service cost	5		5		15		15
Net periodic post-retirement benefit expense	$	34	36		102		107

We report service cost for our qualified pension and post-retirement benefit plans in cost of services and products and selling, general and administrative expenses in our consolidated statements of operations. Additionally, a portion of the service cost is also allocated to certain assets under construction, which are capitalized and reflected as part of property, plant and equipment in our consolidated balance sheets. The remaining components of net periodic benefit expense (income) are reported in other income (expense), net in our consolidated statements of operations. The expected rate of return on plan assets is the long-term rate of return we expect to earn on the plans' assets, net of administrative expenses paid from plan assets.

Benefits paid by our qualified pension plan are paid through a trust that holds all plan assets. Based on current laws and circumstances, we do not expect any contributions to be required for our qualified pension plan during the remainder of 2017. However, we made a voluntary contribution of $100 million to the trust for our qualified pension plan in the third quarter of 2017.

Earnings Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings per Common Share

Earnings Per Common Share

Basic and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 were calculated as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator):
Net income	$	92		152		272		584
Earnings applicable to non-vested restricted stock	—			—		—		—
Net income applicable to common stock for computing basic earnings per common share	92			152		272		584
Net income as adjusted for purposes of computing diluted earnings per common share	$	92		152		272		584
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period	549,618			546,310		548,779		545,715
Non-vested restricted stock	(8,097		)	(6,504	)	(7,666	)	(6,304	)
Weighted-average shares outstanding for computing basic earnings per common share	541,521			539,806		541,113		539,411
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities	10			10		10		10
Shares issuable under incentive compensation plans	432			1,101		756		1,072
Number of shares as adjusted for purposes of computing diluted earnings per common share	541,963			540,917		541,879		540,493
Basic earnings per common share	$	0.17		0.28		0.50		1.08
Diluted earnings per common share	$	0.17		0.28		0.50		1.08

Our calculation of diluted earnings per common share excludes shares of common stock that are issuable upon exercise of stock options when the exercise price is greater than the average market price of our common stock. We also exclude unvested restricted stock awards that are antidilutive as a result of unrecognized compensation cost. Such shares averaged 5.1 million and 2.7 million for the three months ended September 30, 2017 and 2016, respectively, and averaged 4.2 million and 3.3 million for the nine months ended September 30, 2017 and 2016, respectively.

Fair Value Disclosure

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosure

Our financial instruments consist of cash, cash equivalents and restricted cash, accounts receivable, accounts payable and long-term debt, excluding capital lease and other obligations. Due to their short-term nature, the carrying amounts of our cash, cash equivalents and restricted cash, accounts receivable and accounts payable approximate their fair values.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent and knowledgeable parties who are willing and able to transact for an asset or liability at the measurement date. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs when determining fair value and then we rank the estimated values based on the reliability of the inputs used following the fair value hierarchy set forth by the FASB.

We determined the fair values of our long-term debt, including the current portion, based on quoted market prices where available or, if not available, based on discounted future cash flows using current market interest rates.

The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:



Input Level		Description of Input
Level 1		Observable inputs such as quoted market prices in active markets.
Level 2		Inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3		Unobservable inputs in which little or no market data exists.

The following table presents the carrying amounts and estimated fair values of our long-term debt, excluding capital lease and other obligations, as well as the input level used to determine the fair values indicated below:



		As of September 30, 2017			As of December 31, 2016
	Input Level	Carrying Amount		Fair Value	Carrying Amount	Fair Value
		(Dollars in millions)
Liabilities—Long-term debt, excluding capital lease and other obligations	2	$	24,238	24,642	19,553	19,639

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Data

In January 2017, we implemented a new organizational structure designed to further strengthen our ability to attain our operational, strategic and financial goals. Prior to this reorganization, we operated and reported as two segments, business and consumer. As a result of this reorganization, we changed the name of the predecessor business segment to "enterprise" segment. At September 30, 2017, we had the following two reportable segments:

•

Enterprise Segment. Consists generally of providing strategic, legacy and data integration products and services to small, medium and enterprise business, wholesale and governmental customers, including other communication providers. Our strategic products and services offered to these customers include our MPLS, Ethernet, broadband, wavelength, VoIP and other ancillary services. Our legacy services offered to these customers primarily include local and long-distance voice, including the sale of unbundled network elements ("UNEs"), which allow our wholesale customers to use all or part of our network to provide voice and data services to their customers, private line (including special access), switched access and other ancillary services. Our data integration offerings include the sale of telecommunications equipment located on customers' premises and related products and professional services, all of which are described further below under the heading "Product and Service Categories"; and


•	Consumer Segment. Consists generally of providing strategic and legacy products and services to residential customers. Our strategic products and services offered to these customers include our broadband, video (including our Prism TV services) and other ancillary services. Our legacy services offered to these customers include local and long-distance voice and other ancillary services.

In connection with our January 2017 reorganization, we also reassigned our information technology, managed hosting, cloud hosting and hosting area network services from our former business segment to a new non-reportable operating segment.

The results of our two reportable segments, enterprise and consumer, are summarized below:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions)
Total reportable segment revenues	$	3,558		3,916		10,943		11,776
Total reportable segment expenses	1,913			2,068		5,720		6,009
Total reportable segment income	$	1,645		1,848		5,223		5,767
Total margin percentage	46		%	47	%	48	%	49	%

Enterprise segment:
Revenues	$	2,171		2,444		6,742		7,321
Expenses	1,292			1,425		3,907		4,116
Income	$	879		1,019		2,835		3,205
Margin percentage	40		%	42	%	42	%	44	%
Consumer segment:
Revenues	$	1,387		1,472		4,201		4,455
Expenses	621			643		1,813		1,893
Income	$	766		829		2,388		2,562
Margin percentage	55		%	56	%	57	%	58	%

Additional Changes in Segment Reporting

As a part of the implementation of the new organizational structure described in "Segment Data", we made several changes with respect to the assignment of certain expenses to our reportable segments, most notably the reassignment of certain marketing and advertising expenses from the consumer segment to the enterprise segment. We have recast our previously-reported segment results for the three and nine months ended September 30, 2016, to conform to the current presentation reflected in this report.

In connection with our acquisition of Level 3 (discussed further in Note 2—Acquisition of Level 3), effective November 1, 2017 we began managing our operations in two segments: (i) business segment, which consists generally of providing strategic, legacy and data integration products and services (including information technology, managed hosting, cloud hosting and hosting area network services previously reflected in our above-mentioned non-reportable segment) to small, medium and enterprise businesses and wholesale and government customers, including other communication providers and (ii) consumer segment, which consists generally of providing strategic and legacy products and services to residential customers.

Product and Service Categories

From time to time, we change the categorization of our products and services, and we may make similar changes in the future. During the second quarter of 2017, we determined that certain of our legacy services, specifically our dark fiber network leasing, are more closely aligned with our strategic services than with our legacy services. As a result, we now reflect these operating revenues as strategic services, and we have reclassified certain prior period amounts to conform to this change. The revision resulted in an increase of revenue from strategic services and a corresponding decrease in revenue from legacy services of $12 million and $36 million for the three and nine months ended September 30, 2016, respectively.

We categorize our products, services and revenues among the following four categories:


•	Strategic services, which include primarily broadband, MPLS, Ethernet, hosting (including cloud hosting and managed hosting), video (including our facilities-based video services, which we offer in 16 markets), wavelength, VoIP, information technology and other ancillary services;


•	Legacy services, which include primarily local and long-distance voice, including the sale of UNEs, private line (including special access), Integrated Services Digital Network ("ISDN") (which uses regular telephone lines to support voice, video and data applications), switched access and other ancillary services;


•	Data integration, which includes the sale of telecommunications equipment located on customers' premises and related products and professional services, such as network management, installation and maintenance of data equipment, the building of proprietary fiber-optic broadband networks for our governmental and business customers and the reselling of software; and

•

Other operating revenues, which consist primarily of Connect America Fund ("CAF") support payments, Universal Service Fund ("USF") support payments and USF surcharges. We receive federal support payments from both Phase 1 and Phase 2 of the CAF program, and support payments from both federal and state USF programs. These support payments are government subsidies designed to reimburse us for various costs related to certain telecommunications services, including the costs of deploying, maintaining and operating voice and broadband infrastructure in high-cost rural areas where we are not able to fully recover our costs from our customers. We also collect USF surcharges based on specific services we list on our customers' invoices to fund the FCC's universal service programs. We also generate other operating revenues from the leasing and subleasing of space in our office buildings, warehouses and other properties and from rental income associated with the failed-sale-leaseback. Because we centrally manage the activities that generate these other operating revenues, these revenues are not included in our segment revenues.

Our operating revenue detail for our products and services consisted of the following categories:



	Three Months Ended September 30,			Nine Months Ended September 30,
	2017		2016	2017	2016
	(Dollars in millions)
Strategic services
Enterprise high-bandwidth data services (1)	$	767	744	2,296	2,235
Other enterprise strategic services (2)	182		334	735	989
IT and managed services (3)	169		160	483	483
Consumer broadband services (4)	673		674	1,995	2,023
Other consumer strategic services (5)	101		115	311	340
Total strategic services revenues	1,892		2,027	5,820	6,070

Legacy services
Enterprise voice services (6)	551		601	1,682	1,834
Enterprise low-bandwidth data services (7)	289		339	905	1,056
Other enterprise legacy services (8)	252		265	754	809
Consumer voice services (6)	541		605	1,678	1,854
Other consumer legacy services (9)	72		78	216	237
Total legacy services revenues	1,705		1,888	5,235	5,790

Data integration
Enterprise data integration	130		161	370	398
IT and managed services data integration	4		2	14	3
Consumer data integration	—		—	1	1
Total data integration revenues	134		163	385	402

Other revenues
High-cost support revenue (10)	165		171	501	518
Other revenue (11)	138		133	392	401
Total other revenues	303		304	893	919

Total revenues	$	4,034	4,382	12,333	13,181

______________________________________________________________________



(1)	Includes MPLS, Ethernet and wavelength revenue
(2)	Includes primarily colocation, broadband, VOIP, video and fiber lease revenue
(3)	Includes primarily IT services, managed hosting, cloud hosting and hosting area network revenue
(4)	Includes broadband and related services revenue
(5)	Includes video and other revenue
(6)	Includes local and long-distance voice revenue
(7)	Includes private line (including special access) revenue
(8)	Includes UNEs, public access, switched access and other ancillary revenue
(9)	Includes other ancillary revenue
(10)	Includes CAF Phase 1, CAF Phase 2 and federal and state USF support revenue
(11)	Includes USF surcharges and failed-sale-leaseback rental income

We recognize revenues in our consolidated statements of operations for certain USF surcharges and transaction taxes that we bill to our customers. Our consolidated statements of operations also reflect the offsetting expense for the amounts we remit to the government agencies. The total amount of such surcharges and transaction taxes that we included in revenues aggregated $129 million and $144 million for the three months ended September 30, 2017 and 2016, respectively, and $392 million and $435 million for the nine months ended September 30, 2017 and 2016, respectively. These USF surcharges, where we record revenue, are included in "other" operating revenues and these transaction taxes are included in "legacy services" revenues. We also act as a collection agent for certain other USF and transaction taxes that we are required by government agencies to bill our customers, for which we do not record any revenue or expense because we only act as a pass-through agent.

Allocations of Revenues and Expenses

Our segment revenues include all revenues from our strategic, legacy and data integration operations as described in more detail above. Our segment revenues are based upon each customer's classification. We report our segment revenues based upon all services provided to that segment's customers. Our segment expenses include specific expenses incurred as a direct result of providing services and products to segment customers, along with selling, general and administrative expenses that are (i) directly associated with specific segment customers or activities and (ii) allocated expenses, which include network expenses, facilities expenses and other expenses such as fleet and real estate expenses. We do not assign depreciation and amortization expense or impairments to our segments, as the related assets and capital expenditures are centrally managed and are not monitored by or reported to the chief operating decision maker ("CODM") by segment. Generally speaking, severance expenses, restructuring expenses and certain centrally managed administrative functions (such as finance, information technology, legal and human resources) are not assigned to our segments. Interest expense is also excluded from segment results because we manage our financing on a consolidated basis and have not allocated assets or debt to specific segments. Other income and expense items are not monitored as a part of our segment operations and are therefore excluded from our segment results.

The following table reconciles total reportable segment income to net income:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions)
Total reportable segment income	$	1,645		1,848		5,223		5,767
Non-reportable segment revenues	173			162		497		486
Other operating revenues	303			304		893		919
Depreciation and amortization	(910		)	(995	)	(2,739	)	(2,958	)
Other operating expenses	(724		)	(726	)	(2,389	)	(2,286	)
Total other expense, net	(348		)	(344	)	(999	)	(982	)
Income before income tax expense	139			249		486		946
Income tax expense	(47		)	(97	)	(214	)	(362	)
Net income	$	92		152		272		584

At September 30, 2017, we did not have any single customer that provided more than 10% of our total consolidated operating revenues, and substantially all of our consolidated revenues came from customers located in the United States.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are vigorously defending against all of the matters described below (excluding those referred to under the heading "Hurricane Damage"). As a matter of course, we are prepared to both litigate these matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities. In this Note, when we refer to a class action as "putative" it is because a class has been alleged, but not certified in that matter. We have established accrued liabilities for these matters described below where losses are deemed probable and reasonably estimable. Pending CenturyLink Matters Shareholder Class Action Suit CenturyLink and the members of the CenturyLink Board have been named as defendants in a putative shareholder class action lawsuit filed on January 11, 2017 in the 4th Judicial District Court of the State of Louisiana, Ouachita Parish, captioned Jeffery Tomasulo v. CenturyLink, Inc., et al., Docket No. C-20170110. The complaint asserts, among other things, that the members of CenturyLink’s Board allegedly breached their fiduciary duties to the CenturyLink shareholders in approving the Level 3 merger agreement and, more particularly, that: the consideration that CenturyLink agreed to pay to Level 3 stockholders in the transaction is allegedly unfairly high; the CenturyLink directors allegedly had conflicts of interest in negotiating and approving the transaction; and the disclosures set forth in our preliminary joint proxy statement/prospectus filed in December 2016 are insufficient in that they allegedly fail to contain material information concerning the transaction. The complaint seeks, among other things, a declaration that the members of the CenturyLink Board have breached their fiduciary duties, corrective disclosure, rescissory or other damages and equitable relief, including rescission of the transaction. On February 13, 2017, the parties entered into a memorandum of understanding providing for the settlement of the lawsuit. The proposed settlement is subject to court approval, among other conditions, and the amount of the settlement is not material to our consolidated financial statements. Retiree Benefits Suit In William Douglas Fulghum, et al. v. Embarq Corporation, et al., filed on December 28, 2007 in the United States District Court for the District of Kansas, a group of retirees filed a class action lawsuit challenging the decision to make certain modifications in retiree benefits programs relating to life insurance, medical insurance and prescription drug benefits, generally effective January 1, 2006 and January 1, 2008 (which, at the time of the modifications, was expected to reduce estimated future expenses for the subject benefits by more than $300 million). Defendants include Embarq, certain of its benefit plans, its Employee Benefits Committee and the individual plan administrator of certain of its benefits plans. Additional defendants include Sprint Nextel and certain of its benefit plans. The court certified classes on the claims for vested benefits and age discrimination, but rejected class certification on the claims for breach of fiduciary duty. On October 14, 2011, the Fulghum lawyers filed a new, related lawsuit, Abbott et al. v. Sprint Nextel et al. In Abbott, approximately 1,500 plaintiffs alleged breach of fiduciary duty in connection with the changes in retiree benefits that were at issue in Fulghum. After extensive district court proceedings in Fulghum, and an interlocutory appeal to the United States Court of Appeals for the Tenth Circuit, defendants prevailed in 2015 on all age discrimination claims and on the majority of claims for vested benefits. The district court in Fulghum subsequently granted judgment in favor of defendants on all remaining vested benefits claims, and in July 2016 ordered that any affected class members could appeal this ruling. No appeal was taken, and all claims for vested benefits thus have lapsed. On August 31, 2016, the parties reached a settlement in principle on all remaining claims in Fulghum and Abbott. Since then, a settlement agreement has been finalized and, per its terms, the settlement funds have been distributed to class members. The settlement payments were not material to our consolidated financial statements. Switched Access Disputes Subsidiaries of CenturyLink, Inc. are among hundreds of companies involved in an industry-wide dispute, raised in nearly 100 federal lawsuits (filed between 2014 and 2016) that have been consolidated in the United States District Court for the Northern District of Texas for pretrial procedures. The disputes relate to switched access charges that local exchange carriers ("LECs") collect from interexchange carriers ("IXCs") for IXCs' use of LEC's access services. In the lawsuits, IXCs, including Sprint Communications Company L.P. ("Sprint") and various affiliates of Verizon Communications Inc. ("Verizon"), assert that federal and state laws bar LECs from collecting access charges when IXCs exchange certain types of calls between mobile and wireline devices that are routed through an IXC. Some of these IXCs have asserted claims seeking refunds of payments for access charges previously paid and relief from future access charges. In November 2015, the federal court agreed with the LECs and rejected the IXCs' contention that federal law prohibits these particular access charges. In light of this ruling, some of the defendants, including us, have petitioned the FCC to address these issues on an industry-wide basis. As both an IXC and a LEC, we both pay and assess significant amounts of the charges in question. The outcome of these disputes and lawsuits, as well as any related regulatory proceedings that could ensue, are currently not predictable. If we are required to stop assessing these charges or to pay refunds of any such charges, our financial results could be negatively affected. State Tax Suits CenturyLink, Inc. and several of its subsidiaries are defendants in lawsuits filed over the past few years in the Circuit Court of St. Louis County, Missouri by numerous Missouri municipalities alleging underpayment of taxes. These municipalities are seeking, among other things, (i) a declaratory judgment regarding the extent of our obligations to pay certain business license and gross receipts taxes and (ii) a monetary award of back taxes covering 2007 to the present, plus penalties and interest. In a February 2017 ruling in connection with one of these pending cases, the court entered into a final order awarding plaintiffs $4 million and broadening the tax base on a going forward basis. We filed a notice of appeal on March 3, 2017.We expect the outcome of our appeal to reduce our ultimate exposure, although we can provide no assurances to this effect. In a June 9, 2017 ruling in connection with another one of these pending cases, the court made findings which, if not overturned, will result in a tax liability to us well in excess of the contingent liability we have established. Following further proceedings at the district court, we plan to file an appeal and continue to vigorously defend against these claims. For a variety of reasons, we expect the outcome of our appeal to significantly reduce our ultimate exposure, although we can provide no assurances to this effect. Billing Practices Suits In June 2017, a former employee filed an employment lawsuit against us claiming that she was wrongfully terminated for alleging that we charged some of our retail customers for products and services they did not authorize. Starting shortly thereafter and continuing since then, and based in part on the allegations made by the former employee, a series of consumer and shareholder putative class actions were filed against us, and we received several shareholder derivative demands. In July 2017, the Minnesota Attorney General also filed a civil suit on behalf of the Minnesota consumers alleging that we engaged in improper sales and billing practices. The filing of additional related lawsuits is possible. The consumer putative class actions have been transferred to the U.S. District Court for the District of Minnesota for coordinated and consolidated pretrial proceedings. The shareholder putative class actions have been consolidated into a single action that currently is pending in U.S. District Court for the Western District of Louisiana. In addition, a separate, related class action has been filed in U.S. District Court for the Southern District of New York purportedly on behalf of persons who purchased certain of our Senior Notes. In late June 2017, the Board of Directors formed a special committee of outside directors to investigate improper sales and billing practices and related matters. In August 2017, the Board of Directors formed a special litigation committee of outside directors to address the allegations of impropriety contained in the shareholder derivative demands. Both investigations are ongoing. Pending Litigation Matters Assumed in Level 3 Acquisition Rights-of-Way Litigation Level 3 is party to a number of purported class action lawsuits involving its right to install fiber optic cable network in railroad right-of-ways adjacent to plaintiffs' land. In general, Level 3 obtained the rights to construct its networks from railroads, utilities, and others, and have installed its networks along the rights-of-way so granted. Plaintiffs in the purported class actions assert that they are the owners of lands over which the fiber optic cable networks pass, and that the railroads, utilities and others who granted Level 3 the right to construct and maintain its network did not have the legal authority to do so. The complaints seek damages on theories of trespass, unjust enrichment and slander of title and property, as well as punitive damages. Level 3 has also received, and may in the future receive, claims and demands related to rights-of-way issues similar to the issues in these cases that may be based on similar or different legal theories. Level 3 has defeated motions for class certification in a number of these actions but expect that, absent settlement of these actions, plaintiffs in the pending lawsuits will continue to seek certification of statewide or multi-state classes. The only lawsuit in which a class was certified against Level 3, absent an agreed upon settlement, occurred in Koyle, et. al. v. Level 3 Communications, Inc., et. al., a purported two state class action filed in the United States District Court for the District of Idaho. The Koyle lawsuit has been dismissed pursuant to a settlement reached in November 2010 as described further below. Level 3 negotiated a series of class settlements affecting all persons who own or owned land next to or near railroad rights of way in which Level 3 has installed its fiber optic cable networks. The United States District Court for the District of Massachusetts in Kingsborough v. Sprint Communications Co. L.P. granted preliminary approval of the proposed settlement; however, on September 10, 2009, the court denied a motion for final approval of the settlement on the basis that the court lacked subject matter jurisdiction and dismissed the case. In November 2010, Level 3 negotiated revised settlement terms for a series of state class settlements affecting all persons who own or owned land next to or near railroad rights of way in which Level 3 has installed its fiber optic cable networks. Level 3 is currently pursuing presentment of the settlement in applicable jurisdictions. The settlements, affecting current and former landowners, have received final federal court approval in all but one of the applicable states, and the parties are actively engaged in, or have completed, the claims process for the vast majority of the applicable states, including payment of claims. Level 3 continues to seek approval in the remaining state. Management believes that Level 3 has substantial defenses to the claims asserted in the remaining state and intends to defend them vigorously if a satisfactory settlement is not ultimately approved for the affected landowners. Peruvian Tax Litigation Beginning in 2005, one of Level 3’s Peruvian subsidiaries received a number of assessments for tax, penalties and interest for calendar years 2001 and 2002. Peruvian tax authorities ("SUNAT") took the position that the Peruvian subsidiary incorrectly documented its importations resulting in additional income tax withholding and value-added taxes ("VAT"). The total amount of the asserted claims, including potential interest and penalties, was $26 million, consisting of $3 million for income tax withholding in connection with the import of services for calendar years 2001 and 2002, $7 million for VAT in connection with the import of services for calendar years 2001 and 2002, and $16 million in connection with the disallowance of VAT credits for periods beginning in 2005. After taking into account the developments described below, as well as the accrued interest and foreign exchange effects, the total amount of exposure is $16 million at September 30, 2017. Level 3 challenged the tax assessments during 2005 by filing administrative claims before SUNAT. During August 2006 and June 2007, SUNAT rejected Level 3’s administrative claims, thereby confirming the assessments. Appeals were filed in September 2006 and July 2007 with the Tribunal Fiscal, the highest level of administrative review, which is not part of the Peru judiciary (the "Tribunal"). The 2001 and 2002 assessed withholding tax assessments were resolved in our favor in separate administrative resolutions; however, the penalties with respect to withholding tax remain at issue in the administrative appeals. In October 2011, the Tribunal issued its administrative resolution with respect to the calendar year 2002 tax period regarding VAT, associated penalties and penalties associated with withholding taxes, deciding the central issue underlying the assessments in the government's favor, while confirming the assessment in part and denying a portion of the assessment on procedural grounds. Level 3 appealed the Tribunal's October 2011 administrative resolutions to the judicial court in Peru. In September 2014, the first judicial court rendered a decision largely in Level 3’s favor on the central issue underlying the assessments. SUNAT appealed the court’s decision to the next judicial level. The court of appeal remanded the case to the first judicial court for further development of the facts and legal analysis supporting its decision. In April 2016, the first judicial level rendered a decision in Level 3’s favor on the central issue underlying the assessments. SUNAT has appealed the substantive issue to the next judicial level. Level 3 also appealed certain procedural points. In May 2017, the court of appeal issued a decision reversing the favorable decision reached by the first judicial level. In June 2017, Level 3 filed an appeal of the decision to the Supreme Court of Justice, the final judicial level. In October 2013, the Tribunal notified Level 3 of its July 2013 administrative resolution with respect to the calendar year 2001 tax period regarding VAT, associated penalties and penalties associated with withholding taxes, determining the central issue underlying the assessments in the government's favor, while confirming the assessment in part and denying a portion of the assessment on procedural grounds. Level 3 appealed the Tribunal's July 2013 administrative resolutions to the judicial court in Peru. In April 2015, the first judicial court rendered a decision largely in SUNAT’s favor on the central issue underlying the assessments. Level 3 appealed the court’s decision to the next judicial level. In April 2016, the court of appeal rendered a decision that declared null the April 2015 decision and remanded the case to the first judicial court for further development of the facts and legal analysis supporting its decision. In June 2017, the first judicial court issued a ruling against Level 3 primarily based on the same grounds from the original decision. In June 2017, Level 3 filed an appeal with the court of appeal. An oral hearing took place before the court of appeals on October 18, 2017. A decision on this case is pending. In December 2013, SUNAT initiated an audit of calendar year 2001. In June 2014, Level 3 was served with SUNAT’s assessments of the 2001 VAT credits declared null by the Tribunal and the corresponding fine. In July 2014, Level 3 challenged these assessments by filing administrative claims before SUNAT. In January 2015, SUNAT rejected the administrative claims, thereby confirming the assessments. Level 3 filed an appeal with the Tribunal in February 2015. In May 2015, the Tribunal notified Level 3 of its administrative resolution declaring the assessments and corresponding fines null. The time for SUNAT to appeal this resolution has closed. Under local practice, notification of an appeal can take several months. Counsel confirmed in the first quarter of 2016 that SUNAT has not filed an appeal to the resolution. Nevertheless, SUNAT retains the right to reissue the assessments declared null or start a new audit. However, Level 3 is under no obligation to provide additional information and any fine issued by SUNAT based on the same information that it has already used in the past would be declared null. Accordingly, in March 2016, Level 3 released an accrual of approximately $15 million for an assessment and associated interest. In addition, based on a change in legal interpretation by the Peruvian judicial courts, the statute of limitations with respect to the 2001 fines has expired. Accordingly, in the fourth quarter of 2016, Level 3 released an accrual of approximately $11 million of fines and associated interest. Employee Severance and Contractor Termination Disputes A number of former employees and third-party contractors have asserted a variety of claims in litigation against certain of Level 3’s Latin American subsidiaries for separation pay, severance, commissions, pension benefits, unpaid vacation pay, breach of employment contracts, unpaid performance bonuses, property damages, moral damages and related statutory penalties, fines, costs and expenses (including accrued interest, attorneys' fees and statutorily mandated inflation adjustments) as a result of their separation from Level 3 or termination of service relationships. Level 3 is vigorously defending itself against the asserted claims, which aggregate to approximately $30 million at September 30, 2017. Brazilian Tax Claims In December 2004, March 2009, April 2009 and July 2014, the São Paulo state tax authorities issued tax assessments against one of Level 3’s Brazilian subsidiaries for the Tax on Distribution of Goods and Services (“ICMS”) with respect to revenue from leasing movable properties (in the case of the December 2004, March 2009 and July 2014 assessments) and revenue from the provision of Internet access services (in the case of the April 2009 and July 2014 assessments), by treating such activities as the provision of communications services, to which the ICMS tax applies. During the third quarter of 2014, Level 3 released an accrual of $6 million for tax, penalty and associated interest corresponding to the ICMS applicable on the provision of Internet access services due to the expiration of the statute of limitations for the January 2008 to June 2009 tax periods. In September 2002, July 2009 and May 2012, the Rio de Janeiro state tax authorities issued tax assessments to the same Brazilian subsidiary on similar issues. Level 3 has filed objections to these assessments, arguing that the lease of assets and the provision of Internet access are not communication services subject to ICMS. The objections to the September 2002, December 2004 and March 2009 assessments were rejected by the respective state administrative courts, and Level 3 has appealed those decisions to the judicial courts. In October 2012 and June 2014, Level 3 received favorable rulings from the lower court on the December 2004 and March 2009 assessments regarding equipment leasing, but those rulings are subject to appeal by the state. No ruling has been obtained with respect to the September 2002 assessment. The objections to the April and July 2009 and May 2012 assessments are still pending final administrative decisions. The July 2014 assessment was confirmed during the fourth quarter of 2014 at the first administrative level and Level 3 appealed this decision to the second administrative level. During the fourth quarter of 2014, Level 3 entered into an amnesty with the Rio de Janeiro state tax authorities with respect to potential ICMS liability for the 2008 tax period. As a result, Level 3 paid $5 million and released an accrual of $3 million of tax corresponding to the ICMS applicable on the provision of Internet access services in the fourth quarter of 2014. Level 3 is vigorously contesting all such assessments in both states and, in particular, views the assessment of ICMS on revenue from leasing movable properties to be without merit. Nevertheless, Level 3 believes it is reasonably possible that these assessments could result in a loss of up to $54 million at September 30, 2017 in excess of the accruals established for these matters. Other Level 3 Matters Level 3 has recently been notified of a qui tam action pending against Level 3 Communications, Inc., certain former employees and others in the United States District Court for the Eastern District of Virginia (United States of America ex rel., Stephen Bishop v. Level 3 Communications, Inc. et al., Case No. 1:13-cv-1453). Certain statutes permit private citizens, called “relators,” to institute civil proceedings alleging violations of those statutes. These qui tam cases are typically sealed by the court at the time of filing. The original qui tam complaint was filed under seal on November 26, 2013, and an amended complaint was filed under seal on June 16, 2014. The court unsealed the complaints on October 26, 2017. The amended complaint alleges that Level 3, principally through two former employees, submitted false claims and made false statements to the government in connection with two government contracts. The relator seeks damages in this lawsuit of approximately $50 million, subject to trebling, plus statutory penalties, pre-and-post judgment interest, and attorney’s fees. The case is currently stayed. As Level 3 only recently been made aware of the content of the amended complaint, Level 3 is evaluating its defenses to the claims. At this time, Level 3 does not believe it is probable Level 3 will incur a material loss. If, contrary to its expectations, the plaintiff prevails in this matter and proves damages at or near $50 million, and is successful in having those damages trebled, the outcome could have a material adverse effect on its results of operations in the period in which a liability is recognized and on its cash flows for the period in which any damages are paid. The two former Level 3 employees named in the qui tam amended complaint and others were also indicted in the United States District Court for the Eastern District of Virginia on October 3, 2017, and charged with, among other things, accepting kickbacks from a subcontractor, who was also indicted, for work to be performed under a prime government contract. Level 3 is fully cooperating in the government’s investigations in this matter. Other Proceedings and Disputes From time to time, we are involved in other proceedings incidental to our business, including patent infringement allegations, administrative hearings or proceedings of state public utility commissions relating primarily to our rates or services, actions relating to employee claims, various tax issues, environmental law issues, grievance hearings before labor regulatory agencies and miscellaneous third party tort actions. We are currently defending several patent infringement lawsuits asserted against us by non-practicing entities, many of which are seeking substantial recoveries. These cases have progressed to various stages and one or more may go to trial in the coming 24 months if they are not otherwise resolved. Where applicable, we are seeking full or partial indemnification from our vendors and suppliers. As with all litigation, we are vigorously defending these actions and, as a matter of course, are prepared to litigate these matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities. We are subject to various foreign, federal, state and local environmental protection and health and safety laws. From time to time, we are subject to judicial and administrative proceedings brought by various governmental authorities under these laws. Several such proceedings are currently pending, but none is reasonably expected to exceed $100,000 in fines and penalties. The outcome of these other proceedings is not predictable. However, based on current circumstances, we do not believe that the ultimate resolution of these other proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows. Hurricane Damage During the third quarter of 2017, multiple hurricanes struck portions of United States, which caused damage to our facilities and disruption of our services in certain areas of multiple states. We are still in the process of assessing the full extent of the damage. However, based on our current assessment, we estimate that expenditures required for the restoration of our network and physical plant may range from $20 million to $25 million, including repairs and equipment replacement. In addition, Level 3 incurred damage to certain of its facilities from multiple hurricanes, and estimate expenditures required for the restoration of their network and physical plant of $6 million, including repairs and equipment replacement. These damage estimates are subject to many uncertainties and may change materially as we complete physical surveys. The hurricanes did not have a significant impact on our financial condition or results of operations as of and for the three and nine months ended September 30, 2017, as the majority of the capital and repair expenditures will be recorded in the future periods as we incur the costs. _________________ The ultimate outcome of the above-described matters may differ materially from the outcomes anticipated, estimated, projected or implied by us in certain of our forward-looking statements appearing above in this Note, and proceedings currently viewed as immaterial by us may ultimately materially impact us. For more information, see “Risk Factors—Risks Relating to Legal and Regulatory Matters—Our pending legal proceedings could have a material adverse impact on our financial condition and operating results, on the trading price of our securities and on our ability to access the capital markets” in Item 1A of Part II of this report.

Other Financial Information

9 Months Ended

Sep. 30, 2017

Additional Financial Information Disclosure [Abstract]

Other financial information

Other Financial Information

Other Current Assets

The following table presents details of other current assets in our consolidated balance sheets:



	As of September 30, 2017		As of December 31, 2016
	(Dollars in millions)
Prepaid expenses	$	245	206
Materials, supplies and inventory	131		134
Deferred activation and installation charges	109		101
Other	154		106
Total other current assets	$	639	547

Selected Current Liabilities

Current liabilities reflected in our consolidated balance sheets include accounts payable and other current liabilities as follows:



	As of September 30, 2017		As of December 31, 2016
	(Dollars in millions)
Accounts payable	$	939	1,179
Other current liabilities:
Accrued rent	$	32	31
Legal contingencies	36		30
Other	148		152
Total other current liabilities	$	216	213

Included in accounts payable at September 30, 2017 and December 31, 2016, were (i) $69 million and $56 million, respectively, representing book overdrafts and (ii) $165 million and $196 million, respectively, associated with capital expenditures.

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Information Relating to 2017

The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three and nine months ended September 30, 2017:



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at June 30, 2017	$	(1,836	)	(156	)	(58	)	(2,050	)
Other comprehensive income (loss) before reclassifications	—			—		18		18
Amounts reclassified from accumulated other comprehensive income	34			4		—		38
Net current-period other comprehensive income	34			4		18		56
Balance at September 30, 2017	$	(1,802	)	(152	)	(40	)	(1,994	)



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at December 31, 2016	$	(1,895	)	(162	)	(60	)	(2,117	)
Other comprehensive income (loss) before reclassifications	—			—		20		20
Amounts reclassified from accumulated other comprehensive income	93			10		—		103
Net current-period other comprehensive income	93			10		20		123
Balance at September 30, 2017	$	(1,802	)	(152	)	(40	)	(1,994	)

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2017:



Three Months Ended September 30, 2017	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	51		Other income (expense), net
Prior service cost	3			Other income (expense), net
Total before tax	54
Income tax benefit	(16		)	Income tax expense
Net of tax	$	38



Nine Months Ended September 30, 2017	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	154		Other income (expense), net
Prior service cost	9			Other income (expense), net
Total before tax	163
Income tax benefit	(60		)	Income tax expense
Net of tax	$	103

________________________________________________________________________


⁽¹⁾	See Note 6—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.

Information Relating to 2016

The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three and nine months ended September 30, 2016:



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at June 30, 2016	$	(1,663	)	(174	)	(44	)	(1,881	)
Other comprehensive income (loss) before reclassifications	—			—		(4	)	(4	)
Amounts reclassified from accumulated other comprehensive income	26			4		—		30
Net current-period other comprehensive income	26			4		(4	)	26
Balance at September 30, 2016	$	(1,637	)	(170	)	(48	)	(1,855	)



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at December 31, 2015	$	(1,715	)	(180	)	(39	)	(1,934	)
Other comprehensive income (loss) before reclassifications	—			—		(9	)	(9	)
Amounts reclassified from accumulated other comprehensive income	78			10		—		88
Net current-period other comprehensive income	78			10		(9	)	79
Balance at September 30, 2016	$	(1,637	)	(170	)	(48	)	(1,855	)

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2016:



Three Months Ended September 30, 2016	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	44		Other income (expense), net
Prior service cost	3			Other income (expense), net
Total before tax	47
Income tax benefit	(17		)	Income tax expense
Net of tax	$	30



Nine Months Ended September 30, 2016	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	131		Other income (expense), net
Prior service cost	9			Other income (expense), net
Total before tax	140
Income tax benefit	(52		)	Income tax expense
Net of tax	$	88

________________________________________________________________________


⁽¹⁾	See Note 6—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.

Labor Union Contracts	9 Months Ended
Labor Union Contracts	Sep. 30, 2017
Labor Union Contracts [Abstract]
Concentration risk disclosure	Labor Union Contracts As of September 30, 2017, approximately 36% of our employees were members of various bargaining units represented by the Communication Workers of America ("CWA") and the International Brotherhood of Electrical Workers ("IBEW"). Approximately 600 of our employees are subject to collective bargaining agreements that are scheduled to expire during the remainder of 2017. In mid-2017, we reached new agreements with the CWA District 7 and IBEW Local 206, which represented at September 30, 2017 approximately 10,000, or 25%, of our employees that were subject to collective bargaining agreements which expired on October 7, 2017. The new agreements were effective June 18, 2017 and will expire on March 28, 2020 and include terms substantially similar to those contained in the prior agreements.

Background (Policies)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation policy

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated.

To simplify the overall presentation of our consolidated financial statements, we report immaterial amounts attributable to noncontrolling interests in certain of our subsidiaries as follows: (i) income attributable to noncontrolling interests in other income (expense), net, (ii) equity attributable to noncontrolling interests in additional paid-in capital and (iii) cash flows attributable to noncontrolling interests in other, net financing activities.

Dividends

We pay dividends out of retained earnings to the extent we have retained earnings on the date the dividend is declared. If the dividend is in excess of our retained earnings on the declaration date, then the excess is drawn from our additional paid-in capital.

Reclassification policy

We reclassified certain prior period amounts to conform to the current period presentation, including the categorization of our revenues and our segment reporting. See Note 9—Segment Information for additional information. These changes had no impact on total operating revenues, total operating expenses or net income for any period.

Recently adopted accounting pronouncements and recent accounting pronouncements

Recently Adopted Accounting Pronouncements

In the second quarter of 2017, we adopted Accounting Standards Update ("ASU") 2016-18, "Restricted Cash (a consensus of the Financial Accounting Standards Board ("FASB") Emerging Issues Task Force)" ("ASU 2016-18"). In the first quarter of 2017, we adopted ASU 2016-09, “Improvements to Employee Share Based Compensation” (“ASU 2016-09”) and ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). Each of these is described further below.

Restricted Cash

On November 17, 2016, the FASB issued ASU 2016-18, which requires that a statement of cash flows explain the change in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents as compared to the previous presentation, which explains only the change in cash and cash equivalents. ASU 2016-18 is effective January 1, 2018, but early adoption is permitted and requires retrospective application of the requirements to all previous periods presented. We early adopted ASU 2016-18 in the second quarter of 2017.

Prior to the financing transaction we entered into in the second quarter of 2017 related to the Level 3 acquisition, as further described in Note 4—Long-Term Debt and Credit Facilities, our restricted cash balances have been immaterial. With the adoption of ASU 2016-18, our "net increase in cash, cash equivalents and restricted cash" presented in our consolidated statements of cash flows for the nine months ended September 30, 2017 increased by $6 billion as a result of the inclusion of the restricted cash related to the Level 3 financing transaction, with a corresponding increase in net cash generated from financing activities. On November 1, 2017, the escrowed funds were released upon the consummation of the Level 3 acquisition.

Share-based Compensation

ASU 2016-09 modified the accounting and associated income tax accounting for share-based compensation in order to reduce the cost and complexity associated with previous U.S. GAAP. The primary provisions of ASU 2016-09 that affect our consolidated financial statements for the three and nine months ended September 30, 2017 are:

1.

A reclassification of the income tax effect associated with the difference between the expense recognized for share-based payments and the related tax deduction from additional paid-in capital to income tax expense. This change was applied on a prospective basis and resulted in no change in income tax expense for the three months ended September 30, 2017 and a $6 million increase in income tax expense for the nine months ended September 30, 2017.


2.	We elected to change our accounting policy to account for forfeitures of share-based payment grants as they occur as opposed to our previous policy of estimating the forfeitures on the grant date. The cumulative effect of adopting this policy as of January 1, 2017 resulted in an increase of $3 million, net of a $2 million tax effect, in retained earnings (accumulated deficit).

Net Periodic Pension and Postretirement Benefit Costs

ASU 2017-07 modified the presentation of net periodic pension and postretirement benefit costs and requires the service cost component to be reported separately from the other components in order to provide more useful information. Under ASU 2017-07, the service cost component of net periodic pension and postretirement benefit costs is required to be presented in the same expense category as the related salary and wages for the employee. The other components of the net periodic pension and postretirement benefit costs are required to be recognized below operating income in other income (expense), net in our consolidated statements of operations. This change was applied on a retrospective basis to all previous periods to match the current period presentation. This retrospective application resulted in a $2 million and $11 million reduction in operating income and a corresponding decrease in total other expense, net for the three and nine months ended September 30, 2016, respectively.

Recent Accounting Pronouncements

Goodwill Impairment

On January 26, 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the impairment testing for goodwill by changing the measurement for goodwill impairment. Under current rules, we are required to compute the implied fair value of goodwill to measure the impairment amount if the carrying value of a reporting unit exceeds its fair value. Under ASU 2017-04, the goodwill impairment charge will equal the excess of the reporting unit carrying value above fair value, limited to the amount of goodwill assigned to the reporting unit.

We are required to adopt the provisions of ASU 2017-04 for any goodwill impairment tests, including our required annual test, occurring after January 1, 2020, but have the option to early adopt for any impairment test that we are required to perform. We have not determined if we will elect to early adopt the provisions of ASU 2017-04. The provisions of ASU 2017-04 would not have affected our last goodwill impairment assessment, but no assurance can be provided that the simplified testing methodology will not affect our goodwill impairment assessment in the future.

Income Taxes

On October 24, 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” ("ASU 2016-16"). ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among our subsidiaries. After adoption of this ASU, the income tax effects associated with these asset transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or over the remaining useful life of the asset. We are currently reviewing the requirements of this ASU and evaluating the impact on our consolidated financial statements.

We expect to adopt the provisions of ASU 2016-16 on the required adoption date of January 1, 2018. The impact of adopting ASU 2016-16, if any, will be recognized through a cumulative adjustment to (accumulated deficit) retained earnings as of the date of adoption.

Financial Instruments

On June 16, 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). The primary impact of ASU 2016-13 for us is a change in the model for the recognition of credit losses related to our financial instruments from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires our management team to estimate the total credit losses expected on the portfolio of financial instruments. We are currently reviewing the requirements of the standard and evaluating the impact on our consolidated financial statements.

We are required to adopt the provisions of ASU 2016-13 effective January 1, 2020, but could elect to early adopt the provisions as of January 1, 2019. We expect to recognize the impacts of adopting ASU 2016-13 through a cumulative adjustment to (accumulated deficit) retained earnings as of the date of adoption. As of the date of this report, we have not yet determined the date we will adopt ASU 2016-13.

Leases

On February 25, 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). The core principle of ASU 2016-02 will require lessees to present right-of-use assets and lease liabilities on their balance sheets for operating leases, which are currently not reflected on their balance sheets.

ASU 2016-02 is effective for annual and interim periods beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. Upon adoption of ASU 2016-02, we are required to recognize and measure leases at the beginning of the earliest period presented in our consolidated financial statements using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply.

We are currently evaluating new lease administrative and accounting systems and are in the process of developing an implementation plan. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019 and the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded. Although we believe it is premature as of the date of this report to provide any estimate of the impact of adopting ASU 2016-02, we do expect that it will have a material impact on our consolidated financial statements. Additionally, upon the January 1, 2019, implementation of ASU 2016-02, accounting for the failed-sale-leaseback transaction described in Note 3—Sale of Data Centers and Colocation Business will no longer be applicable based on our facts and circumstances, and the real estate assets and corresponding financing obligation will be derecognized from our consolidated balance sheet.

Revenue Recognition

On May 28, 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 replaces virtually all existing GAAP on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. We currently do not defer any contract acquisition costs, but we expect we will defer certain contract acquisition costs in the future, which initially could have the impact of lowering our operating expenses. We currently defer contract fulfillment costs only to the extent of any deferred revenue. Under ASU 2014-09, in certain transactions our deferred contract fulfillment costs could exceed our deferred revenues, which could result in an increase in deferred costs, and could also impact the timing on our recognition of these deferred costs.

On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year until January 1, 2018, which is the date we plan to adopt this standard. ASU 2014-09 may be adopted by applying the provisions of this standard on a retrospective basis to the periods included in the financial statements or on a modified retrospective basis, which would result in the recognition of a cumulative effect of adopting ASU 2014-09 in the first quarter of 2018. We have completed our initial assessment of our business and systems requirements, and we are currently developing and implementing a new revenue recognition system to comply with the requirements of ASU 2014-09. In addition, we are undergoing a review of our existing internal controls relating to our revenue recognition and financial reporting processes, and we expect to update or implement additional controls in applying the five-step model for recognizing revenue. We currently plan to adopt the new revenue recognition standard under the modified retrospective transition method. As of the date of this report, we are not able to provide reasonably accurate estimates of the impact of implementing ASU 2014-09 on the timing of our revenue recognition or the transition adjustment that will be recorded to equity on January 1, 2018.

Sale of Data Centers and Colocation Business (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of disposal assets held-for-sale and liabilities attributable to disposal assets held-for-sale

The following table reflects the assets sold to and the liabilities assumed by Cyxtera on May 1, 2017, including our most current estimates of the impact of failed-sale-leaseback:



	Dollars in millions
Goodwill	$	1,142
Property, plant and equipment	1,051
Other intangible assets	249
Other assets	66
Less assets recorded as part of the failed-sale-leaseback	(526		)
Total net amount of assets derecognized	$	1,982

Capital lease obligations	$	294
Other liabilities	274
Less imputed financing obligations from the failed-sale-leaseback	(628		)
Total net imputed liabilities recognized	$	(60	)

Sale-leaseback transactions

In addition, based on our most current estimates, the failed-sale-leaseback accounting treatment had the following effects on our consolidated results of operations for the three and nine months ended September 30, 2017, respectively:



	Positive (Negative) Impact to Net Income
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
	(Dollars in millions)
Increase in revenue	$	19		31
Decrease in cost of sales	6			9
Decrease (increase) in loss on sale of business included in selling, general and administrative expense	15			(102	)
Increase in depreciation expense (one-time)	—			(44	)
Increase in depreciation expense (ongoing)	(19		)	(29	)
Increase in interest expense	(17		)	(25	)
(Increase) decrease in income tax expense	(3		)	60
Increase (decrease) in net income	$	1		(100	)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Long-Term Debt and Credit Facilities (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of long-term debt including unamortized discounts and premiums

Long-term debt, including unamortized discounts and premiums and unamortized debt issuance costs, consisting of borrowings by CenturyLink, Inc. and certain of its subsidiaries, including CenturyLink Escrow, LLC, Qwest Corporation, Qwest Capital Funding, Inc. and Embarq Corporation and its subsidiaries ("Embarq"), were as follows:



	Interest Rates	Maturities	As of September 30, 2017			As of December 31, 2016
			(Dollars in millions)
CenturyLink, Inc.
Senior notes	5.625% - 7.650%	2019 - 2042	$	8,125		8,975
2012 credit facility and revolving line of credit⁽¹⁾	—	2019	—			370
2012 term loan	2.990%	2019	319			336
Subsidiaries
CenturyLink Escrow, LLC
Term loan B⁽²⁾	2.75%	2025	6,000			—
Qwest Corporation
Senior notes	6.125% - 7.750%	2021 - 2057	7,294			7,259
Term loan	2.990%	2025	100			100
Qwest Capital Funding, Inc.
Senior notes	6.500% - 7.750%	2018 - 2031	981			981
Embarq Corporation and subsidiaries
Senior note	7.995%	2036	1,485			1,485
First mortgage bonds	7.125% - 8.770%	2019 - 2025	151			223
Other	9.000%	2019	150			150
Capital lease and other obligations⁽³⁾	Various	Various	740			440
Unamortized discounts, net			(164		)	(133	)
Unamortized debt issuance costs			(203		)	(193	)
Total long-term debt			24,978			19,993
Less current maturities not associated with assets held for sale			(124		)	(1,503	)
Less capital lease obligations associated with assets held for sale			—			(305	)
Long-term debt, excluding current maturities and capital leases obligations associated with assets held for sale			$	24,854		18,185

______________________________________________________________________

⁽¹⁾

The aggregate amount outstanding on our 2012 credit facility and revolving line of credit borrowings at December 31, 2016 was $370 million with a weighted-average interest rate of 4.500%. At September 30, 2017, we had no borrowings outstanding under our 2012 credit facility and revolving line of credit. These amounts change on a regular basis. As described under "2017 Credit Agreement" below, we discharged and terminated our 2012 credit facility on November 1, 2017.


⁽²⁾	Represents the fixed rate and the obligor in effect at September 30, 2017. Please see "2017 Credit Agreement" for further information on our term loans and revolving credit facility under our June 19, 2017 credit agreement.

⁽³⁾

As a result of not meeting the sale leaseback accounting requirements, we must treat a certain amount of the pre-tax cash proceeds from the sale of our real estate assets as though it were the result of a financing obligation on our consolidated balance sheet. Also, the capital lease obligations that were shown as held for sale as of December 31, 2016 are retained and revalued. Please see Note 3—Sale of Data Centers and Colocation Business for additional information on our most current estimate of the financing obligation.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Severance and Leased Real Estate (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Schedule of changes in accrued liabilities for severance expenses and leased real estate

Changes in our accrued liabilities for severance expenses and leased real estate were as follows:



	Severance			Real Estate
	(Dollars in millions)
Balance at December 31, 2016	$	98		67
Accrued to expense	19			3
Payments, net	(98		)	(9	)
Reversals and adjustments	—			—
Balance at September 30, 2017	$	19		61

Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Schedule of components of net periodic pension benefit (income) expense and post-retirement benefit expense

Net periodic benefit expense (income) for our qualified and non-qualified pension plans included the following components:



	Pension Plans
	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions)
Service cost	$	16		16		47		48
Interest cost	102			107		308		321
Expected return on plan assets	(166		)	(183	)	(499	)	(550	)
Recognition of prior service credit	(2		)	(2	)	(6	)	(6	)
Recognition of actuarial loss	51			44		154		131
Net periodic pension benefit expense (income)	$	1		(18	)	4		(56	)

Net periodic benefit expense for our post-retirement benefit plans included the following components:



	Post-Retirement Benefit Plans
	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(Dollars in millions)
Service cost	$	4	4		13		14
Interest cost	25		29		75		84
Expected return on plan assets	—		(2	)	(1	)	(6	)
Recognition of prior service cost	5		5		15		15
Net periodic post-retirement benefit expense	$	34	36		102		107

Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per common share

Basic and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 were calculated as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator):
Net income	$	92		152		272		584
Earnings applicable to non-vested restricted stock	—			—		—		—
Net income applicable to common stock for computing basic earnings per common share	92			152		272		584
Net income as adjusted for purposes of computing diluted earnings per common share	$	92		152		272		584
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period	549,618			546,310		548,779		545,715
Non-vested restricted stock	(8,097		)	(6,504	)	(7,666	)	(6,304	)
Weighted-average shares outstanding for computing basic earnings per common share	541,521			539,806		541,113		539,411
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities	10			10		10		10
Shares issuable under incentive compensation plans	432			1,101		756		1,072
Number of shares as adjusted for purposes of computing diluted earnings per common share	541,963			540,917		541,879		540,493
Basic earnings per common share	$	0.17		0.28		0.50		1.08
Diluted earnings per common share	$	0.17		0.28		0.50		1.08

Fair Value Disclosure (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of the three input levels in the hierarchy of fair value measurements

The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:



Input Level		Description of Input
Level 1		Observable inputs such as quoted market prices in active markets.
Level 2		Inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3		Unobservable inputs in which little or no market data exists.

Schedule of carrying amounts and estimated fair values of long-term debt, excluding capital lease obligations, and input level to determine fair values

The following table presents the carrying amounts and estimated fair values of our long-term debt, excluding capital lease and other obligations, as well as the input level used to determine the fair values indicated below:



		As of September 30, 2017			As of December 31, 2016
	Input Level	Carrying Amount		Fair Value	Carrying Amount	Fair Value
		(Dollars in millions)
Liabilities—Long-term debt, excluding capital lease and other obligations	2	$	24,238	24,642	19,553	19,639

Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of segment results

The results of our two reportable segments, enterprise and consumer, are summarized below:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions)
Total reportable segment revenues	$	3,558		3,916		10,943		11,776
Total reportable segment expenses	1,913			2,068		5,720		6,009
Total reportable segment income	$	1,645		1,848		5,223		5,767
Total margin percentage	46		%	47	%	48	%	49	%

Enterprise segment:
Revenues	$	2,171		2,444		6,742		7,321
Expenses	1,292			1,425		3,907		4,116
Income	$	879		1,019		2,835		3,205
Margin percentage	40		%	42	%	42	%	44	%
Consumer segment:
Revenues	$	1,387		1,472		4,201		4,455
Expenses	621			643		1,813		1,893
Income	$	766		829		2,388		2,562
Margin percentage	55		%	56	%	57	%	58	%

Schedule of operating revenues by products and services

Our operating revenue detail for our products and services consisted of the following categories:



	Three Months Ended September 30,			Nine Months Ended September 30,
	2017		2016	2017	2016
	(Dollars in millions)
Strategic services
Enterprise high-bandwidth data services (1)	$	767	744	2,296	2,235
Other enterprise strategic services (2)	182		334	735	989
IT and managed services (3)	169		160	483	483
Consumer broadband services (4)	673		674	1,995	2,023
Other consumer strategic services (5)	101		115	311	340
Total strategic services revenues	1,892		2,027	5,820	6,070

Legacy services
Enterprise voice services (6)	551		601	1,682	1,834
Enterprise low-bandwidth data services (7)	289		339	905	1,056
Other enterprise legacy services (8)	252		265	754	809
Consumer voice services (6)	541		605	1,678	1,854
Other consumer legacy services (9)	72		78	216	237
Total legacy services revenues	1,705		1,888	5,235	5,790

Data integration
Enterprise data integration	130		161	370	398
IT and managed services data integration	4		2	14	3
Consumer data integration	—		—	1	1
Total data integration revenues	134		163	385	402

Other revenues
High-cost support revenue (10)	165		171	501	518
Other revenue (11)	138		133	392	401
Total other revenues	303		304	893	919

Total revenues	$	4,034	4,382	12,333	13,181

______________________________________________________________________



(1)	Includes MPLS, Ethernet and wavelength revenue
(2)	Includes primarily colocation, broadband, VOIP, video and fiber lease revenue
(3)	Includes primarily IT services, managed hosting, cloud hosting and hosting area network revenue
(4)	Includes broadband and related services revenue
(5)	Includes video and other revenue
(6)	Includes local and long-distance voice revenue
(7)	Includes private line (including special access) revenue
(8)	Includes UNEs, public access, switched access and other ancillary revenue
(9)	Includes other ancillary revenue
(10)	Includes CAF Phase 1, CAF Phase 2 and federal and state USF support revenue
(11)	Includes USF surcharges and failed-sale-leaseback rental income

Reconciliation of operating profit (loss) from segments to consolidated net income

The following table reconciles total reportable segment income to net income:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(Dollars in millions)
Total reportable segment income	$	1,645		1,848		5,223		5,767
Non-reportable segment revenues	173			162		497		486
Other operating revenues	303			304		893		919
Depreciation and amortization	(910		)	(995	)	(2,739	)	(2,958	)
Other operating expenses	(724		)	(726	)	(2,389	)	(2,286	)
Total other expense, net	(348		)	(344	)	(999	)	(982	)
Income before income tax expense	139			249		486		946
Income tax expense	(47		)	(97	)	(214	)	(362	)
Net income	$	92		152		272		584

Other Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Additional Financial Information Disclosure [Abstract]

Schedule of components of other current assets

The following table presents details of other current assets in our consolidated balance sheets:



	As of September 30, 2017		As of December 31, 2016
	(Dollars in millions)
Prepaid expenses	$	245	206
Materials, supplies and inventory	131		134
Deferred activation and installation charges	109		101
Other	154		106
Total other current assets	$	639	547

Schedule of current liabilities including accounts payable and other current liabilities

Current liabilities reflected in our consolidated balance sheets include accounts payable and other current liabilities as follows:



	As of September 30, 2017		As of December 31, 2016
	(Dollars in millions)
Accounts payable	$	939	1,179
Other current liabilities:
Accrued rent	$	32	31
Legal contingencies	36		30
Other	148		152
Total other current liabilities	$	216	213

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Summary of the entity's accumulated other comprehensive income (loss) by component

The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three and nine months ended September 30, 2017:



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at June 30, 2017	$	(1,836	)	(156	)	(58	)	(2,050	)
Other comprehensive income (loss) before reclassifications	—			—		18		18
Amounts reclassified from accumulated other comprehensive income	34			4		—		38
Net current-period other comprehensive income	34			4		18		56
Balance at September 30, 2017	$	(1,802	)	(152	)	(40	)	(1,994	)



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at December 31, 2016	$	(1,895	)	(162	)	(60	)	(2,117	)
Other comprehensive income (loss) before reclassifications	—			—		20		20
Amounts reclassified from accumulated other comprehensive income	93			10		—		103
Net current-period other comprehensive income	93			10		20		123
Balance at September 30, 2017	$	(1,802	)	(152	)	(40	)	(1,994	)

The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three and nine months ended September 30, 2016:



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at June 30, 2016	$	(1,663	)	(174	)	(44	)	(1,881	)
Other comprehensive income (loss) before reclassifications	—			—		(4	)	(4	)
Amounts reclassified from accumulated other comprehensive income	26			4		—		30
Net current-period other comprehensive income	26			4		(4	)	26
Balance at September 30, 2016	$	(1,637	)	(170	)	(48	)	(1,855	)



	Pension Plans			Post-Retirement Benefit Plans		Foreign Currency Translation Adjustment and Other		Total
	(Dollars in millions)
Balance at December 31, 2015	$	(1,715	)	(180	)	(39	)	(1,934	)
Other comprehensive income (loss) before reclassifications	—			—		(9	)	(9	)
Amounts reclassified from accumulated other comprehensive income	78			10		—		88
Net current-period other comprehensive income	78			10		(9	)	79
Balance at September 30, 2016	$	(1,637	)	(170	)	(48	)	(1,855	)

Schedule of reclassifications out of accumulated other comprehensive income (loss) by component

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2017:



Three Months Ended September 30, 2017	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	51		Other income (expense), net
Prior service cost	3			Other income (expense), net
Total before tax	54
Income tax benefit	(16		)	Income tax expense
Net of tax	$	38



Nine Months Ended September 30, 2017	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	154		Other income (expense), net
Prior service cost	9			Other income (expense), net
Total before tax	163
Income tax benefit	(60		)	Income tax expense
Net of tax	$	103

________________________________________________________________________


⁽¹⁾	See Note 6—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and nine months ended September 30, 2016:



Three Months Ended September 30, 2016	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	44		Other income (expense), net
Prior service cost	3			Other income (expense), net
Total before tax	47
Income tax benefit	(17		)	Income tax expense
Net of tax	$	30



Nine Months Ended September 30, 2016	Decrease (Increase) in Net Income			Affected Line Item in Consolidated Statement of Operations
	(Dollars in millions)
Amortization of pension & post-retirement plans⁽¹⁾
Net actuarial loss	$	131		Other income (expense), net
Prior service cost	9			Other income (expense), net
Total before tax	140
Income tax benefit	(52		)	Income tax expense
Net of tax	$	88

________________________________________________________________________


⁽¹⁾	See Note 6—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.

Background (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Background (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle
Net increase in cash, cash equivalents and restricted cash			$ 5,940	$ 14
Income tax expense	$ 47	$ 97	214	362
Operating income	487	593	1,485	1,928
Total other expense, net	348	344	999	982
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle
Income tax expense	$ 0		6
Accounting Standards Update 2016-18 \| New accounting pronouncement, early adoption, effect
New Accounting Pronouncements or Change in Accounting Principle
Net increase in cash, cash equivalents and restricted cash			6,000
Net cash provided by financing activities			6,000
Accounting Standards Update 2016-09 \| Restatement adjustment
New Accounting Pronouncements or Change in Accounting Principle
Cumulative effect on retained earnings, net of tax			3
Cumulative effect on retained earnings, tax			$ 2
Accounting Standards Update 2017-07 \| Restatement adjustment \| New accounting pronouncement, early adoption, effect
New Accounting Pronouncements or Change in Accounting Principle
Operating income		(2)		(11)
Total other expense, net		$ (2)		$ (11)

Acquisition of Level 3 (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			6 Months Ended	9 Months Ended
	Nov. 02, 2017	Nov. 01, 2017	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Oct. 31, 2017	Dec. 31, 2016
Business acquisition
Outstanding long-term debt				$ 24,978			$ 19,993
Payments to acquire Level 3				5	$ 24
Level 3 Communications, Inc.
Business acquisition
Business acquisition transaction costs				70
Cash awards granted under deferred compensation arrangements			$ 21
Description of vesting rights under share-based compensation awards and payments of deferred cash compensation awards			The shares of restricted stock will vest in equal installments on the first, second and third anniversaries of the merger closing date. Each employee receiving a deferred cash award is expected to receive one-half of the award no later than 15 days after the closing date and receive the other half on the one year anniversary of the merger closing date, subject to continued employment with us. Both the restricted stock grant and the deferred cash award will accelerate if we terminate the recipient without cause or under certain other conditions.
Compensation expense under share-based and deferred compensation arrangements				17
Subsequent event \| Level 3 Communications, Inc.
Business acquisition
Price per share of stock in business acquisition (per share)		$ 26.50
Payments to acquire Level 3		$ 9,600
Expected tax deductible amount of goodwill acquired		$ 0
Subsequent event \| Level 3 Communications, Inc. \| CenturyLink, Inc.
Business acquisition
CenturyLink, Inc. shareholders ownership control (percent)		51.00%
Level 3 Communications, Inc. shareholders ownership control (percent)		49.00%
Subsequent event \| Level 3 Communications, Inc. \| Common Stock
Business acquisition
Stock issuable in business acquisition on a per share basis, description		1.4286 shares of CenturyLink common stock
Number of CenturyLink, Inc. shares issued (in shares)		517
Value of common stock consideration		$ 9,800
Closing stock price of CenturyLInk, Inc. stock (per share)						$ 18.99
Subsequent event \| Level 3 Communications, Inc. \| Level 3 Communications, Inc.
Business acquisition
Outstanding long-term debt		11,000
Level 3 Parent, LLC \| Subsequent event \| CenturyLink, Inc.
Business acquisition
Note payable to Level 3 Parent, LLC		1,825
Medium-term notes \| CenturyLink Escrow, LLC
Business acquisition
Long-term debt, gross				6,000			0
Medium-term notes \| CenturyLink, Inc.
Business acquisition
Long-term debt, gross				$ 319			$ 336
Medium-term notes \| Subsequent event \| CenturyLink Escrow, LLC
Business acquisition
Long-term debt, gross		7,945
New Revolving Credit Facility \| Revolving credit facility \| Subsequent event \| CenturyLink Escrow, LLC
Business acquisition
Long-term debt, gross		$ 400
Restricted stock units \| Subsequent event \| Level 3 Communications, Inc.
Business acquisition
Price per share of stock in business acquisition (per share)		$ 26.50
Restricted stock units \| Subsequent event \| Level 3 Communications, Inc. \| Common Stock
Business acquisition
Stock issuable in business acquisition on a per share basis, description	1.4286 shares of CenturyLink common stock	each outstanding Level 3 restricted stock unit award granted on or after April 1, 2014 (other than those granted to outside directors of Level 3) was converted into a CenturyLink, Inc. restricted stock unit award using a ratio of 2.8386 to 1 as determined in accordance with a formula set forth in the merger agreement
Restricted stock \| Level 3 Communications, Inc.
Business acquisition
Restricted stock granted under share-based compensation arrangements (less than) (in shares)			1

Sale of Data Centers and Colocation Business (Details) - USD ($) $ in Millions		3 Months Ended			4 Months Ended	5 Months Ended	6 Months Ended	8 Months Ended	9 Months Ended
	May 01, 2017	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	May 02, 2017	Sep. 30, 2017	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense		$ 47		$ 97					$ 214	$ 362
Less assets recorded as part of the failed-sale-leaseback		(41,352)	$ (39,194)			$ (41,352)			(41,352)
Total net amount of assets derecognized		7	2,376			7			7
Capital lease obligations		0	305			0			0
Total net imputed liabilities recognized		0	(419)			0			0
Sale and leaseback transaction loss, net									(82)	$ 0
Colocation Business and Data Centers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sales of data centers and colocation business	$ 1,800
Income tax expense			$ 18				$ 47	$ 65
Depreciation and amortization					$ 67
Colocation Business and Data Centers \| Disposal group disposed of by sale, not discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill	1,142
Property, plant and equipment	1,051
Other intangible assets	249
Other assets	66
Total net amount of assets derecognized	1,982
Capital lease obligations	294
Other liabilities	274
Total net imputed liabilities recognized	(60)
SIS Holdings, LP \| CenturyLink, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
CenturyLink, Inc.'s value of minority stake		150				150			150
Cyxtera Technologies
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense		3							(60)
Less assets recorded as part of the failed-sale-leaseback	526
Less imputed financing obligations from the failed-sale-leaseback	$ (628)
Gain (Loss) on asset leaseback, failed-sale-leaseback transaction									(102)
Sale and leaseback transaction loss, net									(82)
Cyxtera Technologies \| Colocation Business and Data Centers \| Disposal group disposed of by sale, not discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, gain (loss) on disposal									20
Cyxtera Technologies
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current amount due from affiliate		$ 80				80			$ 80
Sale-leaseback transaction rent expense						$ 40

Sale of Data Centers and Colocation Business (Details 2) - USD ($) $ in Millions	3 Months Ended			6 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Sale Leaseback Transaction [Line Items]
Revenues	$ 4,034		$ 4,382			$ 12,333	$ 13,181
Cost of services and products (exclusive of depreciation and amortization)	(1,927)		(1,996)			(5,705)	(5,845)
Selling, general and administrative	(710)		(798)			(2,404)	(2,450)
Depreciation	(910)		(995)			(2,739)	(2,958)
Interest expense	(362)		(327)			(1,000)	(998)
Income tax expense	(47)		(97)			(214)	(362)
NET INCOME	92		$ 152			272	$ 584
Cyxtera Technologies
Sale Leaseback Transaction [Line Items]
Revenues	19					31
Cost of services and products (exclusive of depreciation and amortization)	6					9
Selling, general and administrative	15					(102)
Depreciation expense on assets reclassified from held-for-sale	0					(44)
Depreciation	(19)					(29)
Interest expense	(17)					(25)
Income tax expense	(3)					60
NET INCOME	$ 1					$ (100)
Colocation Business and Data Centers
Sale Leaseback Transaction [Line Items]
Income tax expense		$ (18)		$ (47)	$ (65)

Long-Term Debt and Credit Facilities (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Long-term Debt and Credit Facilities
Capital lease and other obligations	$ 740	$ 440
Unamortized discounts, net	(164)	(133)
Unamortized debt issuance costs	(203)	(193)
Total long-term debt	24,978	19,993
Less current maturities not associated with assets held for sale	(124)	(1,503)
Less capital lease obligations associated with assets held for sale	0	(305)
Long-term debt, excluding current maturities and capital leases obligations associated with assets held for sale	24,854	18,185
CenturyLink, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross	8,125	8,975
CenturyLink, Inc. \| Line of credit
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 0	$ 370
Interest rate at period end - Credit facility and revolving line of credit (percent)	0.00%
Long-term debt, weighted average interest rate (percent)		4.50%
CenturyLink, Inc. \| Medium-term notes
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 319	$ 336
Stated interest rate (percent)	2.99%
CenturyLink, Inc. \| Minimum \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)	5.625%
CenturyLink, Inc. \| Maximum \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)	7.65%
CenturyLink Escrow, LLC \| Medium-term notes
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 6,000	0
Stated interest rate (percent)	2.75%
Qwest Corporation \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 7,294	7,259
Qwest Corporation \| Medium-term notes
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 100	100
Stated interest rate (percent)	2.99%
Qwest Corporation \| Minimum \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)	6.125%
Qwest Corporation \| Maximum \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)	7.75%
Qwest Capital Funding, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 981	981
Qwest Capital Funding, Inc. \| Minimum \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)	6.50%
Qwest Capital Funding, Inc. \| Maximum \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)	7.75%
Embarq Corporation \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 1,485	1,485
Stated interest rate (percent)	7.995%
Embarq Corporation \| First mortgage bonds
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 151	223
Embarq Corporation \| Other
Long-term Debt and Credit Facilities
Long-term debt, gross	$ 150	$ 150
Stated interest rate (percent)	9.00%
Embarq Corporation \| Minimum \| First mortgage bonds
Long-term Debt and Credit Facilities
Stated interest rate (percent)	7.125%
Embarq Corporation \| Maximum \| First mortgage bonds
Long-term Debt and Credit Facilities
Stated interest rate (percent)	8.77%

Long-Term Debt and Credit Facilities (Details 2) $ in Millions	Nov. 02, 2017	Nov. 01, 2017 USD ($)	Jun. 19, 2017 USD ($)	May 05, 2017 USD ($)	Sep. 30, 2017 USD ($)	Aug. 01, 2017 USD ($)	Jul. 19, 2017	Jun. 15, 2017 USD ($)	May 08, 2017 USD ($)	May 04, 2017 USD ($)	Apr. 28, 2017 USD ($)	Apr. 03, 2017 USD ($)	Dec. 31, 2016 USD ($)
Qwest Corporation \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross					$ 7,294.0								$ 7,259.0
Qwest Corporation \| Senior notes \| 6.75% Notes due 2057
Long-term Debt and Credit Facilities
Debt instrument, face amount				$ 85.0							$ 575.0
Stated interest rate (percent)											6.75%
Proceeds from debt, net of issuance costs				$ 638.0
Qwest Corporation \| Senior notes \| 7.5% Notes due 2051
Long-term Debt and Credit Facilities
Debt instrument, face amount									$ 288.0
Stated interest rate (percent)									7.50%
Debt instrument, repurchased face amount									$ 125.0
Qwest Corporation \| Senior notes \| 6.5% Notes due 2017
Long-term Debt and Credit Facilities
Stated interest rate (percent)										6.50%
Debt instrument, repurchased face amount										$ 500.0
Qwest Corporation \| Medium-term notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					2.99%
Long-term debt, gross					$ 100.0								100.0
Qwest Capital Funding, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross					$ 981.0								981.0
Embarq Corporation \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					7.995%
Long-term debt, gross					$ 1,485.0								1,485.0
Embarq Corporation \| Senior notes \| 8.77% Notes due 2017
Long-term Debt and Credit Facilities
Stated interest rate (percent)						8.77%
Debt instrument, repurchased face amount						$ 72.0
Embarq Corporation \| First mortgage bonds
Long-term Debt and Credit Facilities
Long-term debt, gross					151.0								223.0
CenturyLink, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Long-term debt, gross					$ 8,125.0								8,975.0
CenturyLink, Inc. \| Senior notes \| 5.15% Notes due 2017
Long-term Debt and Credit Facilities
Stated interest rate (percent)								5.15%
Debt instrument, repurchased face amount								$ 350.0
CenturyLink, Inc. \| Senior notes \| 6.00% Noted due 2017
Long-term Debt and Credit Facilities
Stated interest rate (percent)												6.00%
Debt instrument, repurchased face amount												$ 500.0
CenturyLink, Inc. \| Medium-term notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					2.99%
Long-term debt, gross					$ 319.0								336.0
CenturyLink Escrow, LLC \| Credit Agreement (New Senior Secured Credit Facilities)
Long-term Debt and Credit Facilities
Long-term debt, gross			$ 9,945.0
Debt covenants description			The New Senior Secured Credit Facilities contain various representations and warranties and affirmative and negative covenants. Such covenants include, among other things and subject to certain significant exceptions, restrictions on our ability to declare or pay dividends, repurchase stock, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with its affiliates, dispose of assets and merge or consolidate with any other person.
CenturyLink Escrow, LLC \| Medium-term notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					2.75%
Long-term debt, gross					$ 6,000.0								$ 0.0
CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Debt instrument, face amount			$ 1,575.0
Credit facility lenders			17
Debt covenants description			With respect to the Term Loan A and A-1 facilities and the New Revolving Credit Facility, the Credit Agreement requires us to maintain (i) a maximum total leverage ratio of not more than 5.00 to 1.00 between the closing date of the Level 3 acquisition and the second anniversary thereof and 4.75 to 1.00 thereafter and (ii) a minimum consolidated interest coverage ratio of at least 2.00 to 1.00, with such ratios being determined and calculated in the manner described in the Credit Agreement.
CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan B
Long-term Debt and Credit Facilities
Debt instrument, face amount			$ 6,000.0
Stated interest rate (percent)			1.375%				2.75%
CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A-1
Long-term Debt and Credit Facilities
Debt instrument, face amount			$ 370.0
Debt covenants description			With respect to the Term Loan A and A-1 facilities and the New Revolving Credit Facility, the Credit Agreement requires us to maintain (i) a maximum total leverage ratio of not more than 5.00 to 1.00 between the closing date of the Level 3 acquisition and the second anniversary thereof and 4.75 to 1.00 thereafter and (ii) a minimum consolidated interest coverage ratio of at least 2.00 to 1.00, with such ratios being determined and calculated in the manner described in the Credit Agreement.
CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Credit facility lenders			18
Line of credit facility, maximum borrowing capacity			$ 2,000.0
Debt covenants description			With respect to the Term Loan A and A-1 facilities and the New Revolving Credit Facility, the Credit Agreement requires us to maintain (i) a maximum total leverage ratio of not more than 5.00 to 1.00 between the closing date of the Level 3 acquisition and the second anniversary thereof and 4.75 to 1.00 thereafter and (ii) a minimum consolidated interest coverage ratio of at least 2.00 to 1.00, with such ratios being determined and calculated in the manner described in the Credit Agreement.
Minimum \| Qwest Corporation \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					6.125%
Minimum \| Qwest Capital Funding, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					6.50%
Minimum \| Embarq Corporation \| First mortgage bonds
Long-term Debt and Credit Facilities
Stated interest rate (percent)					7.125%
Minimum \| CenturyLink, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					5.625%
Minimum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Lending commitment per lender			$ 28.6
Minimum \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Lending commitment per lender			32.8
Maximum \| Qwest Corporation \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					7.75%
Maximum \| Qwest Capital Funding, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					7.75%
Maximum \| Embarq Corporation \| First mortgage bonds
Long-term Debt and Credit Facilities
Stated interest rate (percent)					8.77%
Maximum \| CenturyLink, Inc. \| Senior notes
Long-term Debt and Credit Facilities
Stated interest rate (percent)					7.65%
Maximum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Lending commitment per lender			132.2
Maximum \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Lending commitment per lender			$ 167.8
London Interbank Offered Rate (LIBOR) \| Minimum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			2.25%
London Interbank Offered Rate (LIBOR) \| Minimum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A-1
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			2.25%
London Interbank Offered Rate (LIBOR) \| Minimum \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			2.25%
London Interbank Offered Rate (LIBOR) \| Maximum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			3.00%
London Interbank Offered Rate (LIBOR) \| Maximum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A-1
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			3.00%
London Interbank Offered Rate (LIBOR) \| Maximum \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			3.00%
Base Rate \| Minimum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			1.25%
Base Rate \| Minimum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A-1
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			1.25%
Base Rate \| Minimum \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			1.25%
Base Rate \| Maximum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			2.00%
Base Rate \| Maximum \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan A-1
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			2.00%
Base Rate \| Maximum \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt			2.00%
Swingline Loan \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Line of credit facility, maximum borrowing capacity			$ 100.0
Letter of Credit \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Line of credit facility, maximum borrowing capacity			$ 400.0
Scenario, Forecast \| London Interbank Offered Rate (LIBOR) \| CenturyLink Escrow, LLC \| Medium-term notes \| Term Loan B
Long-term Debt and Credit Facilities
Applicable margin on variable rate debt	2.75%
Subsequent event \| CenturyLink Escrow, LLC \| Credit Agreement (New Senior Secured Credit Facilities)
Long-term Debt and Credit Facilities
Financing fees		$ 239.0
Subsequent event \| CenturyLink Escrow, LLC \| Medium-term notes
Long-term Debt and Credit Facilities
Long-term debt, gross		7,945.0
Subsequent event \| CenturyLink Escrow, LLC \| Revolving credit facility \| New Revolving Credit Facility
Long-term Debt and Credit Facilities
Long-term debt, gross		$ 400.0

Long-Term Debt and Credit Facilities (Details 3)	Apr. 28, 2017
Qwest Corporation \| Senior notes \| 6.75% Notes due 2057 \| Debt instrument, redemption, period one
Debt Instrument, Redemption [Line Items]
Debt Instrument, redemption, description	redeemed by Qwest Corporation, in whole or in part, on or after June 15, 2022, at a redemption price equal to 100% of the principal amount

Severance and Leased Real Estate (Details) $ in Millions	9 Months Ended
Severance and Leased Real Estate (Details) $ in Millions	Sep. 30, 2017 USD ($)
Employee severance
Restructuring reserve
Balance at the beginning of the period	$ 98
Accrued to expense	19
Payments, net	(98)
Reversals and adjustments	0
Balance at the end of the period	19
Qwest Communications International Inc. \| Leased real estate
Leased Real Estate
Current portion of leased real estate accrual	8
Noncurrent portion of leased real estate accrual	$ 53
Weighted average lease terms	7 years 2 months
Restructuring reserve
Balance at the beginning of the period	$ 67
Accrued to expense	3
Payments, net	(9)
Reversals and adjustments	0
Balance at the end of the period	$ 61
Qwest Communications International Inc. \| Leased real estate \| Minimum
Leased Real Estate
Remaining lease terms	8 months
Qwest Communications International Inc. \| Leased real estate \| Maximum
Leased Real Estate
Remaining lease terms	8 years 2 months

Employee Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Employee Benefits (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pension plans
Employee Benefits
Voluntary contributions to plan by employer	$ 100
Components of net periodic (benefit) expense
Service cost	16	$ 16	$ 47	$ 48
Interest cost	102	107	308	321
Expected return on plan assets	(166)	(183)	(499)	(550)
Recognition of prior service (credit) cost	(2)	(2)	(6)	(6)
Recognition of actuarial loss	51	44	154	131
Net periodic benefit (income) expense	1	(18)	4	(56)
Post-retirement benefit plans
Components of net periodic (benefit) expense
Service cost	4	4	13	14
Interest cost	25	29	75	84
Expected return on plan assets	0	(2)	(1)	(6)
Recognition of prior service (credit) cost	5	5	15	15
Net periodic benefit (income) expense	$ 34	$ 36	$ 102	$ 107

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income (Numerator):
Net income	$ 92	$ 152	$ 272	$ 584
Weighted average number of shares:
Weighted average shares outstanding for computing basic earnings per common share (in shares)	541,521	539,806	541,113	539,411
Incremental common shares attributable to dilutive securities:
Number of shares as adjusted for purposes of computing diluted earnings per common share (in shares)	541,963	540,917	541,879	540,493
Basic earnings per common share (in dollars per share)	$ 0.17	$ 0.28	$ 0.50	$ 1.08
Diluted earnings per common share (in dollars per share)	$ 0.17	$ 0.28	$ 0.50	$ 1.08
Common Class A
Income (Numerator):
Net income	$ 92	$ 152	$ 272	$ 584
Earnings applicable to non-vested restricted stock	0	0	0	0
Net income applicable to common stock for computing basic earnings per common share	92	152	272	584
Net income as adjusted for purposes of computing diluted earnings per common share	$ 92	$ 152	$ 272	$ 584
Weighted average number of shares:
Outstanding during period (in shares)	549,618	546,310	548,779	545,715
Non-vested restricted stock (in shares)	(8,097)	(6,504)	(7,666)	(6,304)
Weighted average shares outstanding for computing basic earnings per common share (in shares)	541,521	539,806	541,113	539,411
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities (in shares)	10	10	10	10
Shares issuable under incentive compensation plans (in shares)	432	1,101	756	1,072
Number of shares as adjusted for purposes of computing diluted earnings per common share (in shares)	541,963	540,917	541,879	540,493
Basic earnings per common share (in dollars per share)	$ 0.17	$ 0.28	$ 0.50	$ 1.08
Diluted earnings per common share (in dollars per share)	$ 0.17	$ 0.28	$ 0.50	$ 1.08
Number of shares of common stock excluded from the computation of diluted earnings per share (in shares)	5,100	2,700	4,200	3,300

Fair Value Disclosure (Details) - Fair value measurements determined on a nonrecurring basis - Fair value inputs, Level 2 - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Carrying amount
Liabilities
Liabilities—Long-term debt, excluding capital lease and other obligations	$ 24,238	$ 19,553
Fair value
Liabilities
Liabilities—Long-term debt, excluding capital lease and other obligations	$ 24,642	$ 19,639

Segment Information (Details) $ in Millions			3 Months Ended		9 Months Ended
Segment Information (Details) $ in Millions	Nov. 01, 2017	Jan. 10, 2017 segment	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Segment information
Number of reportable segments (segments)		2			2
Revenues			$ 4,034	$ 4,382		$ 12,333	$ 13,181
Expenses			3,547	3,789		10,848	11,253
Total reportable segment income			487	593		1,485	1,928
Operating segments
Segment information
Revenues			3,558	3,916		10,943	11,776
Expenses			1,913	2,068		5,720	6,009
Total reportable segment income			$ 1,645	$ 1,848		$ 5,223	$ 5,767
Margin percentage (percent)			46.00%	47.00%		48.00%	49.00%
Enterprise
Segment information
Revenues			$ 2,171	$ 2,444		$ 6,742	$ 7,321
Expenses			1,292	1,425		3,907	4,116
Total reportable segment income			$ 879	$ 1,019		$ 2,835	$ 3,205
Margin percentage (percent)			40.00%	42.00%		42.00%	44.00%
Consumer
Segment information
Revenues			$ 1,387	$ 1,472		$ 4,201	$ 4,455
Expenses			621	643		1,813	1,893
Total reportable segment income			$ 766	$ 829		$ 2,388	$ 2,562
Margin percentage (percent)			55.00%	56.00%		57.00%	58.00%
Subsequent event
Segment information
Number of reportable segments (segments)	2

Segment Information (Details 2) $ in Millions	3 Months Ended		9 Months Ended
Segment Information (Details 2) $ in Millions	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) category	Sep. 30, 2016 USD ($)
Operating revenues by products and services
Number of categories of products and services (categories) \| category			4
Revenues	$ 4,034	$ 4,382	$ 12,333	$ 13,181
Surcharge amount on customers' bills	129	144	392	435
Strategic services
Operating revenues by products and services
Revenues	1,892	2,027	5,820	6,070
IT and managed services
Operating revenues by products and services
Revenues	$ 169	160	$ 483	483
Facilities-based video services
Operating revenues by products and services
Number of markets	16		16
Legacy services
Operating revenues by products and services
Revenues	$ 1,705	1,888	$ 5,235	5,790
Data integration
Operating revenues by products and services
Revenues	134	163	385	402
IT and managed services data integration
Operating revenues by products and services
Revenues	4	2	14	3
Other revenues
Operating revenues by products and services
Revenues	303	304	893	919
High cost support revenue
Operating revenues by products and services
Revenues	165	171	501	518
Other revenue
Operating revenues by products and services
Revenues	138	133	392	401
Enterprise
Operating revenues by products and services
Revenues	2,171	2,444	6,742	7,321
Enterprise \| Enterprise high-bandwidth data services
Operating revenues by products and services
Revenues	767	744	2,296	2,235
Enterprise \| Other enterprise strategic services
Operating revenues by products and services
Revenues	182	334	735	989
Enterprise \| Voice services
Operating revenues by products and services
Revenues	551	601	1,682	1,834
Enterprise \| Enterprise low-bandwidth data services
Operating revenues by products and services
Revenues	289	339	905	1,056
Enterprise \| Other enterprise legacy services
Operating revenues by products and services
Revenues	252	265	754	809
Enterprise \| Data integration
Operating revenues by products and services
Revenues	130	161	370	398
Consumer
Operating revenues by products and services
Revenues	1,387	1,472	4,201	4,455
Consumer \| Consumer broadband services
Operating revenues by products and services
Revenues	673	674	1,995	2,023
Consumer \| Other consumer strategic services
Operating revenues by products and services
Revenues	101	115	311	340
Consumer \| Voice services
Operating revenues by products and services
Revenues	541	605	1,678	1,854
Consumer \| Other consumer legacy services
Operating revenues by products and services
Revenues	72	78	216	237
Consumer \| Data integration
Operating revenues by products and services
Revenues	$ 0	0	$ 1	1
Other enterprise strategic services \| Restatement adjustment \| Enterprise \| Strategic services
Operating revenues by products and services
Revenues		12		36
Other enterprise legacy services \| Restatement adjustment \| Enterprise \| Legacy services
Operating revenues by products and services
Revenues		$ (12)		$ (36)

Segment Information (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Segment Information (Details 3) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segment income	$ 487	$ 593	$ 1,485	$ 1,928
Depreciation and amortization	(910)	(995)	(2,739)	(2,958)
Other operating expenses	(3,547)	(3,789)	(10,848)	(11,253)
Total other expense, net	(348)	(344)	(999)	(982)
INCOME BEFORE INCOME TAX EXPENSE	139	249	486	946
Income tax expense	(47)	(97)	(214)	(362)
Net income	92	152	272	584
Operating segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segment income	1,645	1,848	5,223	5,767
Segment reconciling items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Non-reportable segment revenues	173	162	497	486
Other operating revenues	303	304	893	919
Depreciation and amortization	(910)	(995)	(2,739)	(2,958)
Other operating expenses	(724)	(726)	(2,389)	(2,286)
Total other expense, net	$ (348)	$ (344)	$ (999)	$ (982)

Commitments and Contingencies (Details)		1 Months Ended		3 Months Ended			9 Months Ended	24 Months Ended
Commitments and Contingencies (Details)	Oct. 14, 2011 plaintiff	Feb. 28, 2017 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2017 USD ($) lawsuit	Dec. 31, 2007 USD ($)
Loss Contingencies
Patents allegedly infringed (at least)							1
Unfavorable regulatory action
Loss Contingencies
Estimate of possible loss (per proceeding)							$ 100,000
William Douglas Fulghum, et al. v. Embarq Corporation
Loss Contingencies
Effect of modifications made to Embarq's benefits program (greater than)								$ 300,000,000
Abbott et al. v. Sprint Nextel et al.
Loss Contingencies
Number of plaintiffs \| plaintiff	1,500
Judicial ruling \| Missouri municipalities
Loss Contingencies
Number of cases, final court order		1
Litigation settlement amount		$ 4,000,000
CenturyLink, Inc. \| Interexchange Carriers
Loss Contingencies
Number of lawsuits (approximately) \| lawsuit							100
Level 3 Parent, LLC
Loss Contingencies
Loss contingency, damages sought, value,							$ 50,000,000
Level 3 Parent, LLC \| Loss from catastrophes
Loss Contingencies
Estimate of possible loss (per proceeding)							6,000,000
Level 3 Parent, LLC \| Pending litigation \| Peruvian Tax Litigation
Loss Contingencies
Loss contingency, asserted claim							16,000,000
Release of loss contingency accrual			$ 15,000,000	$ 11,000,000
Level 3 Parent, LLC \| Pending litigation \| Peruvian Tax Litigation, Before Interest
Loss Contingencies
Loss contingency, asserted claim							26,000,000
Level 3 Parent, LLC \| Pending litigation \| Peruvian Tax Litigation, Income Taxwitholding 2001 and 2002
Loss Contingencies
Loss contingency, asserted claim							3,000,000
Level 3 Parent, LLC \| Pending litigation \| Peruvian Tax Litigation, Vat for 2001 and 2002
Loss Contingencies
Loss contingency, asserted claim							7,000,000
Level 3 Parent, LLC \| Pending litigation \| Peruvian Tax Litigation, Disallowance of VAT 2005
Loss Contingencies
Loss contingency, asserted claim							16,000,000
Level 3 Parent, LLC \| Pending litigation \| Employee Severance and Contractor Termination Disputes
Loss Contingencies
Loss contingency, asserted claim							30,000,000
Level 3 Parent, LLC \| Pending litigation \| Brazilian Tax Reserve Release \| Brazilian Tax Claims
Loss Contingencies
Loss contingency accrual, period increase (decrease)					$ 3,000,000	$ 6,000,000
Loss contingency accrual, payments					$ 5,000,000
Maximum \| Loss from catastrophes
Loss Contingencies
Estimate of possible loss (per proceeding)							25,000,000
Maximum \| Level 3 Parent, LLC \| Pending litigation \| Brazilian Tax Claims
Loss Contingencies
Loss contingency, range of possible loss, portion not accrued							54,000,000
Minimum \| Loss from catastrophes
Loss Contingencies
Estimate of possible loss (per proceeding)							$ 20,000,000

Other Financial Information (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid expenses	$ 245	$ 206
Materials, supplies and inventory	131	134
Deferred activation and installation charges	109	101
Other	154	106
Total other current assets	639	547
Accounts Payable, Current [Abstract]
Accounts payable	939	1,179
Book overdraft balance	69	56
Capital expenditures incurred but not yet paid	165	196
Other Current Liabilities
Accrued rent	32	31
Legal contingencies	36	30
Other	148	152
Total other current liabilities	$ 216	$ 213

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated other comprehensive loss
Balance at beginning of period			$ 13,399
Accumulated other comprehensive income (loss) by component
Other comprehensive income (loss) before reclassifications	$ 18	$ (4)	20	$ (9)
Amounts reclassified from accumulated other comprehensive income	38	30	103	88
Other comprehensive income	56	26	123	79
Balance at end of period	12,960	13,892	12,960	13,892
Defined benefit plan
Accumulated other comprehensive income (loss) by component
Amounts reclassified from accumulated other comprehensive income	38	30	103	88
Defined benefit plan \| Pension plans
Accumulated other comprehensive loss
Balance at beginning of period	(1,836)	(1,663)	(1,895)	(1,715)
Accumulated other comprehensive income (loss) by component
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	34	26	93	78
Other comprehensive income	34	26	93	78
Balance at end of period	(1,802)	(1,637)	(1,802)	(1,637)
Defined benefit plan \| Post-retirement benefit plans
Accumulated other comprehensive loss
Balance at beginning of period	(156)	(174)	(162)	(180)
Accumulated other comprehensive income (loss) by component
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	4	4	10	10
Other comprehensive income	4	4	10	10
Balance at end of period	(152)	(170)	(152)	(170)
Foreign currency translation adjustment and other
Accumulated other comprehensive loss
Balance at beginning of period	(58)	(44)	(60)	(39)
Accumulated other comprehensive income (loss) by component
Other comprehensive income (loss) before reclassifications	18	(4)	20	(9)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Other comprehensive income	18	(4)	20	(9)
Balance at end of period	(40)	(48)	(40)	(48)
Accumulated other comprehensive income
Accumulated other comprehensive loss
Balance at beginning of period	(2,050)	(1,881)	(2,117)	(1,934)
Accumulated other comprehensive income (loss) by component
Other comprehensive income			123	79
Balance at end of period	$ (1,994)	$ (1,855)	$ (1,994)	$ (1,855)

Accumulated Other Comprehensive Loss (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassifications out of accumulated other comprehensive income loss by component
Net of tax	$ 38	$ 30	$ 103	$ 88
Net actuarial loss
Reclassifications out of accumulated other comprehensive income loss by component
Total before tax	51	44	154	131
Prior service cost
Reclassifications out of accumulated other comprehensive income loss by component
Total before tax	3	3	9	9
Defined benefit plan
Reclassifications out of accumulated other comprehensive income loss by component
Total before tax	54	47	163	140
Income tax benefit	(16)	(17)	(60)	(52)
Net of tax	$ 38	$ 30	$ 103	$ 88

Labor Union Contracts (Details)	9 Months Ended
Labor Union Contracts (Details)	Sep. 30, 2017
Workforce subject to collective bargaining arrangements, expiring remainder of fiscal year
Concentration risk
Number of unionized employees	600
Workforce subject to collective bargaining arrangements, effective June 18, 2017
Concentration risk
Number of unionized employees	10,000
Total number of employees \| Unionized employees concentration risk
Concentration risk
Concentration risk (percent)	36.00%
Total number of employees \| Unionized employees concentration risk \| Workforce subject to collective bargaining arrangements, effective June 18, 2017
Concentration risk
Concentration risk (percent)	25.00%