LUMEN TECHNOLOGIES, INC., 10-Q filed on 8/4/2021
Quarterly Report
v3.21.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2021
Jul. 30, 2021
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2021  
Document Transition Report false  
Entity File Number 001-7784  
Entity Registrant Name LUMEN TECHNOLOGIES, INC.  
Entity Incorporation, State or Country Code LA  
Entity Tax Identification Number 72-0651161  
Entity Address, Address Line One 100 CenturyLink Drive,  
Entity Address, City or Town Monroe,  
Entity Address, State or Province LA  
Entity Address, Postal Zip Code 71203  
City Area Code 318  
Local Phone Number 388-9000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,105,232,133
Entity Central Index Key 0000018926  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Common Stock    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $1.00 per share  
Trading Symbol LUMN  
Security Exchange Name NYSE  
Preferred Stock    
Document Information [Line Items]    
Title of 12(b) Security Preferred Stock Purchase Rights  
No Trading Symbol Flag true  
Security Exchange Name NYSE  
v3.21.2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Statement [Abstract]        
OPERATING REVENUE $ 4,924 $ 5,192 $ 9,953 $ 10,420
OPERATING EXPENSES        
Cost of services and products (exclusive of depreciation and amortization) 2,115 2,232 4,251 4,467
Selling, general and administrative 762 895 1,518 1,748
Depreciation and amortization 1,041 1,162 2,191 2,322
Total operating expenses 3,918 4,289 7,960 8,537
OPERATING INCOME 1,006 903 1,993 1,883
OTHER (EXPENSE) INCOME        
Interest expense (384) (414) (773) (863)
Other income (expense), net 52 24 86 (74)
Total other expense, net (332) (390) (687) (937)
INCOME BEFORE INCOME TAXES 674 513 1,306 946
Income tax expense 168 136 325 255
NET INCOME $ 506 $ 377 $ 981 $ 691
BASIC AND DILUTED EARNINGS PER COMMON SHARE        
BASIC (in dollars per share) $ 0.47 $ 0.35 $ 0.90 $ 0.64
DILUTED (in dollars per share) $ 0.46 $ 0.35 $ 0.90 $ 0.64
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING        
BASIC (in shares) 1,086,453 1,079,475 1,084,464 1,077,755
DILUTED (in shares) 1,093,402 1,082,567 1,092,494 1,082,218
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Statement of Comprehensive Income [Abstract]        
NET INCOME $ 506 $ 377 $ 981 $ 691
Items related to employee benefit plans:        
Change in net actuarial loss, net of $(12), $(13), (24) and $(25) tax 38 39 76 77
Change in net prior service cost, net of $—, $(1), (1) and $(1) tax 1 2 2 3
Reclassification of realized loss on interest rate swaps to net income, net of $(5), $(5), (10) and $(5) tax 16 11 31 16
Unrealized holding loss on interest rate swaps, net of $—, $2, — and $28 tax 0 (8) 0 (88)
Foreign currency translation adjustment, net of $(4), $(4), 3 and $19 tax 80 9 (6) (230)
Other comprehensive income (loss) 135 53 103 (222)
COMPREHENSIVE INCOME $ 641 $ 430 $ 1,084 $ 469
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Statement of Comprehensive Income [Abstract]        
Change in net actuarial loss, tax $ (12) $ (13) $ (24) $ (25)
Change in net prior service cost, tax 0 (1) (1) (1)
Reclassification of realized loss on interest rate swaps to net income, tax (5) (5) (10) (5)
Unrealized holding gain (loss) on interest rate swaps, tax 0 2 0 28
Foreign currency translation adjustment and other, tax $ (4) $ (4) $ 3 $ 19
v3.21.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
CURRENT ASSETS    
Cash and cash equivalents $ 935 $ 406
Accounts receivable, less allowance of $152 and $191 1,905 1,962
Other 906 808
Total current assets 3,746 3,176
Property, plant and equipment, net of accumulated depreciation of $32,917 and $31,596 25,993 26,338
GOODWILL AND OTHER ASSETS    
Goodwill 18,867 18,870
Other intangible assets, net 7,663 8,219
Other, net 2,678 2,791
Total goodwill and other assets 29,208 29,880
TOTAL ASSETS 58,947 59,394
CURRENT LIABILITIES    
Current maturities of long-term debt 2,595 2,427
Accounts payable 966 1,134
Accrued expenses and other liabilities    
Salaries and benefits 931 1,008
Income and other taxes 294 314
Current operating lease liabilities 389 379
Interest 301 291
Other 286 328
Current portion of deferred revenue 748 753
Total current liabilities 6,510 6,634
LONG-TERM DEBT 28,574 29,410
DEFERRED CREDITS AND OTHER LIABILITIES    
Deferred income taxes, net 3,643 3,342
Benefit plan obligations, net 4,321 4,556
Other 4,193 4,290
Total deferred credits and other liabilities 12,157 12,188
COMMITMENTS AND CONTINGENCIES (Note 12)
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 2,200,000 and 2,200,000 shares, issued and outstanding 1,105,186 and 1,096,921 shares 1,105 1,097
Additional paid-in capital 20,361 20,909
Accumulated other comprehensive loss (2,710) (2,813)
Accumulated deficit (7,050) (8,031)
Total stockholders' equity 11,706 11,162
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 58,947 $ 59,394
v3.21.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Accounts receivable, allowance $ 152 $ 191
PP&E, accumulated depreciation $ 32,917 $ 31,596
Preferred stock-non-redeemable, par value (in dollars per share) $ 25.00 $ 25.00
Preferred stock-non-redeemable, shares authorized (in shares) 2,000,000 2,000,000
Preferred stock-non-redeemable, shares issued (in shares) 7,000 7,000
Preferred stock-non-redeemable, shares outstanding (in shares) 7,000 7,000
Common stock, par value (in dollars per share) $ 1.00 $ 1.00
Common stock, shares authorized (in shares) 2,200,000,000 2,200,000,000
Common stock, shares issued (in shares) 1,105,186,000 1,096,921,000
Common stock, shares outstanding (in shares) 1,105,186,000 1,096,921,000
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
OPERATING ACTIVITIES    
Net income $ 981 $ 691
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 2,191 2,322
Deferred income taxes 279 220
Provision for uncollectible accounts 53 90
Net (gain) loss on early retirement of debt (8) 86
Share-based compensation 62 89
Changes in current assets and liabilities:    
Accounts receivable 4 (2)
Accounts payable (181) (227)
Accrued income and other taxes (29) (3)
Other current assets and liabilities, net (208) (203)
Retirement benefits (131) (62)
Changes in other noncurrent assets and liabilities, net 120 51
Other, net 31 (4)
Net cash provided by operating activities 3,164 3,048
INVESTING ACTIVITIES    
Capital expenditures (1,362) (1,983)
Proceeds from sale of property, plant and equipment and other assets 66 84
Other, net 1 1
Net cash used in investing activities (1,295) (1,898)
FINANCING ACTIVITIES    
Net proceeds from issuance of long-term debt 1,881 2,425
Payments of long-term debt (2,464) (3,696)
Net (payments of) proceeds from revolving line of credit (150) 825
Dividends paid (568) (562)
Other, net (49) (75)
Net cash used in financing activities (1,350) (1,083)
Net increase in cash, cash equivalents and restricted cash 519 67
Cash, cash equivalents and restricted cash at beginning of period 427 1,717
Cash, cash equivalents and restricted cash at end of period 946 1,784
Supplemental cash flow information:    
Income taxes paid, net (73) (20)
Interest paid (net of capitalized interest of $26 and $43) (744) (828)
Cash, cash equivalents and restricted cash:    
Cash and cash equivalents 935 1,763
Restricted cash included in Other current assets 2 3
Restricted cash included in Other, net noncurrent assets 9 18
Total $ 946 $ 1,784
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Statement of Cash Flows [Abstract]    
Capitalized interest $ 26 $ 43
v3.21.2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)
$ in Millions
Total
COMMON STOCK
ADDITIONAL PAID-IN CAPITAL
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED DEFICIT
ACCUMULATED DEFICIT
Cumulative Effect, Period of Adoption, Adjustment
Balance at beginning of period at Dec. 31, 2019   $ 1,090 $ 21,874 $ (2,680) $ (6,814) $ 9
Increase (Decrease) in Stockholders' Equity            
Issuance of common stock through incentive and benefit plans   7        
Shares withheld to satisfy tax withholdings     (35)      
Share-based compensation and other, net     99      
Dividends declared     (562)      
Other comprehensive income (loss) $ (222)     (222)    
Net income 691       691  
Other         5  
Balance at end of period at Jun. 30, 2020 $ 13,462 1,097 21,376 (2,902) (6,109)  
Increase (Decrease) in Stockholders' Equity            
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.50          
Balance at beginning of period at Mar. 31, 2020   1,098 21,634 (2,955) (6,486)  
Increase (Decrease) in Stockholders' Equity            
Issuance of common stock through incentive and benefit plans   (1)        
Shares withheld to satisfy tax withholdings     (2)      
Share-based compensation and other, net     20      
Dividends declared     (276)      
Other comprehensive income (loss) $ 53     53    
Net income 377       377  
Other         0  
Balance at end of period at Jun. 30, 2020 $ 13,462 1,097 21,376 (2,902) (6,109)  
Increase (Decrease) in Stockholders' Equity            
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.25          
Balance at beginning of period at Dec. 31, 2020 $ 11,162 1,097 20,909 (2,813) (8,031)  
Increase (Decrease) in Stockholders' Equity            
Issuance of common stock through incentive and benefit plans   8        
Shares withheld to satisfy tax withholdings     (42)      
Share-based compensation and other, net     64      
Dividends declared     (570)      
Other comprehensive income (loss) 103     103    
Net income 981       981  
Other         0  
Balance at end of period at Jun. 30, 2021 $ 11,706 1,105 20,361 (2,710) (7,050)  
Increase (Decrease) in Stockholders' Equity            
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.50          
Balance at beginning of period at Mar. 31, 2021   1,106 20,598 (2,845) (7,556)  
Increase (Decrease) in Stockholders' Equity            
Issuance of common stock through incentive and benefit plans   (1)        
Shares withheld to satisfy tax withholdings     (3)      
Share-based compensation and other, net     44      
Dividends declared     (278)      
Other comprehensive income (loss) $ 135     135    
Net income 506       506  
Other         0  
Balance at end of period at Jun. 30, 2021 $ 11,706 $ 1,105 $ 20,361 $ (2,710) $ (7,050)  
Increase (Decrease) in Stockholders' Equity            
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.25          
v3.21.2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2019
Income tax expense $ 168 $ 136 $ 325 $ 255  
ACCUMULATED DEFICIT | Cumulative Effect, Period of Adoption, Adjustment          
Income tax expense         $ 2
v3.21.2
Background
 6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background Background
General

We are an international facilities-based technology and communications company engaged primarily in providing a broad array of integrated services to our business and mass markets customers. Our specific products and services are detailed in Note 3—Revenue Recognition.

Basis of Presentation

Our consolidated balance sheet as of December 31, 2020, 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 U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe 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 six 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 and the accompanying notes 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, 2020.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. 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 reclassified certain prior period amounts to conform to the current period presentation, including the categorization of our revenue and expenses in our segment reporting. See Note 11—Segment Information for additional information. These changes had no impact on total operating revenue, total operating expenses or net income for any period.

Operating lease assets are included in other, net under goodwill and other assets on our consolidated balance sheets. Noncurrent operating lease liabilities are included in other under deferred credits and other liabilities on our consolidated balance sheets.

There were no book overdrafts included in accounts payable at June 30, 2021 or December 31, 2020.
Summary of Significant Accounting Policies

Refer to the significant accounting policies described in Note 1— Background and Summary of Significant Accounting Policies to the consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020.

Recently Adopted Accounting Pronouncements

Debt

On January 1, 2021, we adopted ASU 2020-09, "Debt (Topic 470) Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762" ("ASU 2020-09"). This ASU amends and supersedes various SEC paragraphs to reflect SEC Release No. 33-10762, which includes amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees. The adoption of ASU 2020-09 did not have a material impact to our consolidated financial statements.

Investments

On January 1, 2021, we adopted ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815)" ("ASU 2020-01"). This ASU, among other things, clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments - Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. As of June 30, 2021, we determined there was no application or discontinuation of the equity method during the reporting periods. The adoption of ASU 2020-01 did not have a material impact to our consolidated financial statements.

Income taxes

On January 1, 2021, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)" ("ASU 2019-12"). This ASU removes certain exceptions for investments, intra-period allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The adoption of ASU 2019-12 did not have a material impact to our consolidated financial statements.

Measurement of Credit Losses on Financial Instruments

We adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") on January 1, 2020 and recognized a cumulative adjustment to our accumulated deficit as of the date of adoption of $9 million, net of tax effect of $2 million. Please refer to Note 4—Credit Losses on Financial Instruments for more information.

Recently Issued Accounting Pronouncements

In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope" ("ASU 2021-01"), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. ASU 2021-01 provides option guidance for a limited time to ease the potential burden in accounting for reference rate reform. Based on our review of our key material contracts through June 30, 2021, we do not expect ASU 2021-01 to have any material impact on the consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04" or "Reference Rate Reform"), designed to ease the burden of accounting for contract modifications related to the global market-wide reference rate transition period. Subject to certain criteria, ASU 2020-04 provides qualifying entities the option to apply expedients and exceptions to contract modifications and hedging accounting relationships made until December 31, 2022. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. ASU 2020-04 provides optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. Based on our review of our key material contracts through June 30, 2021, we do not expect ASU 2020-04 to have any material impact on the consolidated financial statements.
v3.21.2
Goodwill, Customer Relationships and Other Intangible Assets
 6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Customer Relationships and Other Intangible Assets Goodwill, Customer Relationships and Other Intangible Assets
Goodwill, customer relationships and other intangible assets consisted of the following:

June 30, 2021December 31, 2020
(Dollars in millions)
Goodwill$18,867 18,870 
Indefinite-life intangible assets$9 278 
Other intangible assets subject to amortization: 
Customer relationships, less accumulated amortization of $11,546 and $11,060
5,856 6,344 
Capitalized software, less accumulated amortization of $3,432 and $3,279
1,481 1,520 
Trade names, patents and other, less accumulated amortization of $149 and $120
317 77 
Total other intangible assets, net$7,663 8,219 

When we acquired Embarq Corporation ("Embarq") in 2009, we acquired certain right-of-way assets and, because there were no legal, regulatory, contractual or other factors that would reasonably limit the useful life of these assets, we classified them as indefinite-lived and, as such, these assets were not amortized. However, as we leverage our fiber infrastructure assets, our reliance on the legacy infrastructure (largely copper-based) acquired from Embarq is diminishing. Our recent digital transformation efforts have prompted management to reassess and ultimately change the accounting treatment of these indefinite-lived assets to align with our focus on growth products versus our declining products. As a result, during the first quarter of 2021, we reclassified an indefinite-lived intangible asset to definite-lived intangible asset. As of January 1, 2021 we began amortizing the $268 million asset over its estimated nine-year remaining life. This change in the estimated remaining economic life resulted in an increase in amortization expense of approximately $7 million and $15 million, respectively, for the three and six months ended June 30, 2021, and is expected to increase amortization expense by approximately $30 million for the year ending December 31, 2021. The increase in amortization expense, net of tax, reduced consolidated net income by approximately $5 million and $11 million, respectively, with no impact per basic and diluted common share for the three months ended June 30, 2021 and a $0.01 reduction to basic and diluted common share for the six months ended June 30, 2021 and is expected to reduce consolidated net income by approximately $23 million, or $0.02 per basic and diluted common share, for the year ending December 31, 2021.

Our goodwill was derived from numerous acquisitions where the purchase price exceeded the fair value of the net assets acquired.

We assess our goodwill and other indefinite-lived intangible assets for impairment annually, or, under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our assessment determines the carrying value of equity of any of our reporting units exceeds its fair value. Our annual impairment assessment date for goodwill is October 31, at which date we assess our reporting units. Our annual impairment assessment date for indefinite-lived intangible assets other than goodwill is December 31.
Our reporting units are not discrete legal entities with discrete full financial statements. Our assets and liabilities are employed in and relate to the operations of multiple reporting units. For each reporting unit, we compare its estimated fair value of equity to its carrying value of equity that we assign to the reporting unit. If the estimated fair value of the reporting unit is greater than the carrying value, we conclude that no impairment exists. If the estimated fair value of the reporting unit is less than the carrying value, we record an impairment equal to the excess amount. Depending on the facts and circumstances, we typically estimate the fair value of our reporting units by considering either or both of (i) a discounted cash flow method, which is based on the present value of projected cash flows over a discrete projection period and a terminal value, which represents the value of expected normalized cash flows of the reporting units following the discrete projection period, and (ii) a market approach, which includes the use of market multiples of publicly-traded companies whose services are comparable to ours.

We completed an internal reorganization in January 2021. We now, as a result, report two segments: Business and Mass Markets. The following table shows the rollforward of goodwill assigned to our reportable segments, including the reorganization, from December 31, 2020 through June 30, 2021:

 International and Global AccountsEnterpriseSmall and Medium BusinessWholesaleConsumerBusinessMass MarketsTotal
 (Dollars in millions)
As of December 31, 2020(1)
$2,555 4,738 2,808 3,114 5,655 — — 18,870 
January 2021 reorganization(2,555)(4,738)(2,808)(3,114)(5,655)12,173 6,697 — 
Effect of foreign currency exchange rate change and other— — — — — (3)— (3)
As of June 30, 2021(1)
$— — — — — 12,170 6,697 18,867 
______________________________________________________________________
(1)Goodwill at June 30, 2021 and December 31, 2020 is net of accumulated impairment losses of $12.9 billion.

The January 2021 reorganization was considered a change in event or circumstance which required an assessment of our goodwill for impairment. We performed a qualitative impairment assessment in the first quarter of 2021 and concluded it is more likely than not that the fair value of each of our reporting units exceeded the carrying value of equity of our reporting units at January 31, 2021. Therefore, no impairment existed as of our assessment date.

Total amortization expense for intangible assets for the three months ended June 30, 2021 and 2020 totaled $318 million and $440 million, respectively, and for the six months ended June 30, 2021 and 2020 totaled $743 million and $871 million, respectively. As of June 30, 2021, the gross carrying amount of goodwill, customer relationships, indefinite-life and other intangible assets was $41.7 billion.

We estimate that total amortization expense for intangible assets for the years ending December 31, 2021 through 2025 will be as follows:

 (Dollars in millions)
2021 (remaining six months)$597 
20221,087 
2023991 
2024893 
2025803 
v3.21.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Product and Service Categories

Beginning in the first quarter of 2021, we categorize our products and services revenue among the following four categories for the Business segment:

•Compute and Application Services, which include our Edge Cloud services, IT solutions, Unified Communications and Collaboration ("UC&C"), data center, content delivery network ("CDN") and Managed Security services;

•IP and Data Services, which include Ethernet, IP, and VPN data networks, including software-defined wide area networks ("SD WAN") based services, Dynamic Connections and Hyper WAN;

•Fiber Infrastructure Services, which include dark fiber, optical services and equipment; and

•Voice and Other, which include Time Division Multiplexing ("TDM") voice, private line and other legacy services.

Beginning in the first quarter of 2021, we categorize our products and services revenue among the following four categories for the Mass Markets segment:

•Consumer Broadband, which includes high speed fiber-based and lower speed DSL-based broadband services to residential customers;

•Small Business Group ("SBG") Broadband, which includes high speed fiber-based and lower speed DSL-based broadband services to small businesses;

•Voice and Other, which include primarily local and long-distance services, retail video services (including our linear and TV services), professional services and other ancillary services; and

•Connect America Fund ("CAF") II, which consists of Connect America Fund Phase II payments through the end of 2021 to support voice and broadband in FCC-designated high-cost areas.

Reconciliation of Total Revenue to Revenue from Contracts with Customers

The following tables provide total revenue by segment, sales channel and product category. It also provides the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:

Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services$179 (70)109 192 (64)128 
IP and Data Services427 — 427 432 — 432 
Fiber Infrastructure Services216 (32)184 202 (28)174 
Voice and Other182 — 182 205 — 205 
Total IGAM Revenue1,004 (102)902 1,031 (92)939 
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
Large Enterprise
Compute and Application Services172 (16)156 160 (22)138 
IP and Data Services388 — 388 400 (1)399 
Fiber Infrastructure Services127 (12)115 136 (13)123 
Voice and Other244 — 244 277 — 277 
Total Large Enterprise Revenue931 (28)903 973 (36)937 
Mid-Market Enterprise
Compute and Application Services36 (8)28 35 (3)32 
IP and Data Services438 (2)436 463 (1)462 
Fiber Infrastructure Services53 (2)51 57 (3)54 
Voice and Other155 — 155 200 — 200 
Total Mid-Market Enterprise Revenue682 (12)670 755 (7)748 
Wholesale
Compute and Application Services49 (41)8 45 (39)6 
IP and Data Services297 — 297 313 — 313 
Fiber Infrastructure Services155 (28)127 152 (30)122 
Voice and Other404 (62)342 448 (65)383 
Total Wholesale Revenue905 (131)774 958 (134)824 
Business Segment by Product Category
Compute and Application Services436 (135)301 432 (128)304 
IP and Data Services1,550 (2)1,548 1,608 (2)1,606 
Fiber Infrastructure Services551 (74)477 547 (74)473 
Voice and Other985 (62)923 1,130 (65)1,065 
Total Business Segment Revenue$3,522 (273)3,249 3,717 (269)3,448 
Mass Markets Segment by Product Category
Consumer Broadband$723 (53)670 726 (55)671 
SBG Broadband39 (4)35 39 (5)34 
Voice and Other518 (19)499 587 (29)558 
CAF II122 (122)— 123 (123)— 
Total Mass Markets Segment$1,402 (198)1,204 1,475 (212)1,263 
Total Revenue$4,924 (471)4,453 5,192 (481)4,711 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services$358 (139)219 393 (133)260 
IP and Data Services854 — 854 869 — 869 
Fiber Infrastructure Services432 (62)370 404 (54)350 
Voice and Other373 — 373 406 — 406 
Total IGAM Revenue2,017 (201)1,816 2,072 (187)1,885 
Large Enterprise
Compute and Application Services337 (31)306 314 (39)275 
IP and Data Services783 — 783 801 (1)800 
Fiber Infrastructure Services251 (27)224 274 (23)251 
Voice and Other497 — 497 550 — 550 
Total Large Enterprise Revenue1,868 (58)1,810 1,939 (63)1,876 
Mid-Market Enterprise
Compute and Application Services72 (16)56 69 (11)58 
IP and Data Services891 (3)888 929 (2)927 
Fiber Infrastructure Services113 (4)109 111 (7)104 
Voice and Other322 — 322 407 — 407 
Total Mid-Market Enterprise Revenue1,398 (23)1,375 1,516 (20)1,496 
Wholesale
Compute and Application Services97 (81)16 91 (79)12 
IP and Data Services602 — 602 631 — 631 
Fiber Infrastructure Services309 (59)250 305 (60)245 
Voice and Other826 (125)701 900 (133)767 
Total Wholesale Revenue1,834 (265)1,569 1,927 (272)1,655 
Business Segment by Product Category
Compute and Application Services864 (267)597 867 (262)605 
IP and Data Services3,130 (3)3,127 3,230 (3)3,227 
Fiber Infrastructure Services1,105 (152)953 1,094 (144)950 
Voice and Other2,018 (125)1,893 2,263 (133)2,130 
Total Business Segment Revenue$7,117 (547)6,570 7,454 (542)6,912 
Mass Markets Segment by Product Category
Consumer Broadband$1,454 (105)1,349 1,448 (108)1,340 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
SBG Broadband78 (8)70 78 (8)70 
Voice and Other1,059 (40)1,019 1,194 (58)1,136 
CAF II245 (245)— 246 (246)— 
Total Mass Markets Segment$2,836 (398)2,438 2,966 (420)2,546 
Total Revenue$9,953 (945)9,008 10,420 (962)9,458 
_____________________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

Operating Lease Revenue

Lumen Technologies leases various dark fiber, office facilities, colocation facilities, switching facilities, other network sites and service equipment to third parties under operating leases. Lease and sublease income are included in operating revenue in our consolidated statements of operations.

For the three months ended June 30, 2021 and 2020, our gross rental income was $327 million and $333 million, respectively, which represents approximately 7% and 6%, respectively, of our operating revenue for the three months ended June 30, 2021 and 2020. For the six months ended June 30, 2021 and 2020, our gross rental income was $659 million and $666 million, respectively, which represents 7% and 6%, respectively, of our operating revenue for the six months ended June 30, 2021 and 2020.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities as of June 30, 2021 and December 31, 2020:

June 30, 2021December 31, 2020
 (Dollars in millions)
Customer receivables(1)
$1,830 1,889 
Contract assets85 108 
Contract liabilities876 950 
______________________________________________________________________
(1)Reflects gross customer receivables of $2.0 billion and $2.1 billion, net of allowance for credit losses of $137 million and $174 million, at June 30, 2021 and December 31, 2020, respectively.

Contract liabilities are consideration we have received from our customers or billed in advance of providing goods or services promised in the future. We defer recognizing this consideration as revenue until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which typically ranges from one to five years depending on the service. Contract liabilities are included within deferred revenue in our consolidated balance sheets. During the three and six months ended June 30, 2021, we recognized $58 million and $483 million, respectively, of revenue that was included in contract liabilities as of January 1, 2021. During the three and six months ended June 30, 2020, we recognized $59 million and $554 million, respectively, of revenue that was included in contract liabilities as of January 1, 2020.
Performance Obligations

As of June 30, 2021, our estimated revenue expected to be recognized in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied is approximately $6.7 billion. We expect to recognize approximately 72% of this revenue through 2023, with the balance recognized thereafter.

These amounts exclude (i) the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (for example, uncommitted usage or non-recurring charges associated with professional or technical services to be completed), and (ii) contracts that are classified as leasing arrangements that are not subject to ASC 606.

Contract Costs

The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance$279 216 320 220 
Costs incurred45 38 36 34 
Amortization(53)(37)(56)(35)
End of period balance$271 217 300 219 

Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance$289 216 326 221 
Costs incurred89 75 85 70 
Amortization(107)(74)(111)(72)
End of period balance$271 217 300 219 

Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of services to customers, including labor and materials consumed for these activities.

Deferred acquisition and fulfillment costs are amortized based on the transfer of services on a straight-line basis over the average customer life of approximately 30 months for mass markets and business customers. Amortized fulfillment costs are included in cost of services and products and amortized acquisition costs are included in selling, general and administrative expenses in our consolidated statements of operations. The amount of these deferred costs that are anticipated to be amortized in the next 12 months are included in other current assets on our consolidated balance sheets. The amount of deferred costs expected to be amortized beyond the next 12 months is included in other non-current assets on our consolidated balance sheets. Deferred acquisition and fulfillment costs are assessed for impairment on an annual basis.
v3.21.2
Credit Losses on Financial Instruments
 6 Months Ended
Jun. 30, 2021
Credit Loss [Abstract]  
Credit Losses on Financial Instruments Credit Losses on Financial Instruments
In accordance with ASC 326, "Financial Instruments - Credit Losses," we aggregate financial assets with similar risk characteristics to align our expected credit losses with the credit quality or deterioration over the life of such assets. We monitor certain risk characteristics within our aggregated financial assets and revise their composition accordingly, to the extent internal and external risk factors change each reporting period. Financial assets that do not share risk characteristics with other financial assets are evaluated separately. Our financial assets measured at amortized cost primarily consist of accounts receivable.

We use a loss rate method to estimate our allowance for credit losses. Our determination of the current expected credit loss rate begins with our use of historical loss experience as a percentage of accounts receivable. We measure our historical loss period based on the average days to recognize accounts receivable as credit losses. When asset specific characteristics and current conditions change from those in the historical period, due to changes in our credit and collections strategy, certain classes of aged balances, or credit loss and recovery policies, we perform a qualitative and quantitative assessment to adjust our historical loss rate. We use regression analysis to develop an expected loss rate using historical experience and economic data over a forecast period. We measure our forecast period based on the average days to collect payment on billed accounts receivable. To determine our current allowance for credit losses, we combine the historical and expected credit loss rates and apply them to our period end accounts receivable.

In conjunction with our internal reorganization, as referenced in Note 11—Segment Information, we pooled certain assets with similar credit risk characteristics based on the nature of our customers, their industry, policies used to grant credit terms and their historical and expected credit loss patterns. Additionally, we reassessed our historical loss period for the segment portfolio reorganization.

If there is a deterioration of a customer's financial condition or if future default rates in general differ from currently anticipated default rates (including changes caused by COVID-19), we may need to adjust the allowance for credit losses, which would affect earnings in the period that adjustments are made.

The assessment of the correlation between historical observed default rates, current conditions and forecasted economic conditions requires judgment. Alternative interpretations of these factors could have resulted in different conclusions regarding the allowance for credit losses. The amount of credit loss is sensitive to changes in circumstances and forecasted economic conditions. Our historical credit loss experience, current conditions and forecast of economic conditions may also not be representative of the customers' actual default experience in the future.

The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the six months ended June 30, 2021:

BusinessMass MarketsTotal
(Dollars in millions)
Beginning balance at January 1, 2021(1)
$109 82 191 
Provision for expected losses21 32 53 
Write-offs charged against the allowance(35)(82)(117)
Recoveries collected8 17 25 
Ending balance at June 30, 2021
$103 49 152 
______________________________________________________________________ 
(1)As described in Note 11—Segment Information, we completed an internal reorganization in January 2021. As a result of this change, allowance for credit losses previously included in the Consumer and Business portfolio of $70 million related to consumer and $12 million related to our small business group, respectively, were reclassified to the Mass Markets allowance for credit losses on January 1, 2021.

For the six months ended June 30, 2021, we decreased our allowance for credit losses for our business and mass markets accounts receivable portfolios primarily due to higher write-off activity in the first half of 2021 with the easing of prior delays due to COVID-19 related restrictions in 2020 and lower receivable balances.
v3.21.2
Long-Term Debt and Credit Facilities
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Long-Term Debt and Credit Facilities Long-Term Debt and Credit Facilities
The following chart reflects the consolidated long-term debt of Lumen Technologies, Inc. and its subsidiaries, including unamortized discounts and premiums, net and unamortized debt issuance costs, but excluding intercompany debt:
Interest Rates(1)
Maturities(1)
June 30, 2021December 31, 2020
   (Dollars in millions)
Senior Secured Debt: (2)
Lumen Technologies, Inc.
Revolving Credit Facility (7)
LIBOR + 2.00%
2025$— 150 
Term Loan A (3) (7)
LIBOR + 2.00%
20251,079 1,108 
Term Loan A-1 (3) (7)
LIBOR + 2.00%
2025308 316 
Term Loan B (4) (7)
LIBOR + 2.25%
20274,925 4,950 
Senior notes4.000%20271,250 1,250 
Subsidiaries:
Level 3 Financing, Inc.
Tranche B 2027 Term Loan (5) (7)
LIBOR + 1.75%
20273,111 3,111 
Senior notes
3.400% - 3.875%
2027 - 2029
1,500 1,500 
Embarq Corporation subsidiaries
First mortgage bonds
7.125% - 8.375%
2023 - 2025
138 138 
Senior Notes and Other Debt:    
Lumen Technologies, Inc.
Senior notes
4.500% - 7.650%
2022 - 2042
8,414 8,645 
Subsidiaries:
Level 3 Financing, Inc.
Senior notes
3.625% - 5.375%
2025 - 2029
5,515 5,515 
Qwest Corporation
Senior notes
6.500% - 7.750%
2021 - 2057
2,935 3,170 
Term Loan (6) (7)
LIBOR + 2.00%
2027215 215 
Qwest Capital Funding, Inc.
Senior notes
6.875% - 7.750%
2021 - 2031
352 352 
Embarq Corporation and subsidiary
Senior note7.995%20361,437 1,437 
Finance lease and other obligationsVariousVarious321 295 
Unamortized discounts, net  (96)(78)
Unamortized debt issuance costs(235)(237)
Total long-term debt  31,169 31,837 
Less current maturities   (2,595)(2,427)
Long-term debt, excluding current maturities  $28,574 29,410 
______________________________________________________________________ 
(1)As of June 30, 2021.
(2)See Note 6—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2020 for a description of certain parent or subsidiary guarantees and liens securing this debt.
(3)Term Loans A and A-1 had interest rates of 2.104% and 2.147% as of June 30, 2021 and December 31, 2020, respectively.
(4)Term Loan B had interest rates of 2.354% and 2.397% as of June 30, 2021 and December 31, 2020, respectively.
(5)The Tranche B 2027 Term Loan had interest rates of 1.854% and 1.897% as of June 30, 2021 and December 31, 2020, respectively.
(6)Qwest Corporation Term Loan had interest rates of 2.110% and 2.150% as of June 30, 2021 and December 31, 2020, respectively.
(7)See Note 1— Background for our considerations of the impact of Reference Rate Reform on our debt subject to rate reference changes from LIBOR.

Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of June 30, 2021 (excluding unamortized discounts, net, and unamortized debt issuance costs), maturing during the following years:

 (Dollars in millions)
2021 (remaining six months)$1,127 
20221,542 
2023966 
20241,143 
20252,908 
2026 and thereafter23,814 
Total long-term debt$31,500 

Repayments

During the six months ended June 30, 2021, Lumen Technologies, Inc. and its affiliates repaid or redeemed approximately $2.6 billion of their respective debt obligations, which primarily included $150 million of payments on our revolving credit facility, $1.2 billion repayment at maturity of Lumen senior unsecured notes, $900 million redemption of Level 3 Financing, Inc. senior notes and $235 million redemption of Qwest Corporation senior notes. These transactions resulted in a net gain of $8 million.

New Issuances

On June 15, 2021, Lumen Technologies, Inc. issued $1.0 billion aggregate principal amount of 5.375% Senior Notes due 2029 (the "2029 Notes"). The net proceeds were used, together with cash on hand, to repay at maturity our outstanding $1.2 billion 6.450% Senior Notes, Series S, due 2021.

On January 13, 2021, Level 3 Financing, Inc. issued $900 million aggregate principal amount of 3.750% Sustainability-Linked Senior Notes due 2029 (the "Sustainability-Linked Notes"). The net proceeds were used, together with cash on hand, to redeem $900 million of its outstanding senior note indebtedness. The Sustainability-Linked Notes are guaranteed by Level 3 Parent, LLC and Level 3 Communications, LLC.

Covenants

Certain of our debt instruments contain affirmative and negative covenants. Debt at Lumen Technologies, Inc. and Level 3 Financing, Inc. contains more extensive covenants including, among other things and subject to certain exceptions, restrictions on the ability to declare or pay dividends, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with affiliates, dispose of assets and merge or consolidate with any other person. Also, Lumen Technologies, Inc. and certain of its affiliates will be required to offer to purchase certain of their respective outstanding debt under defined circumstances in connection with specified "change of control" transactions.

Certain of our debt instruments contain cross-payment default or cross-acceleration provisions.

Compliance

As of June 30, 2021, Lumen Technologies, Inc. believes it and its subsidiaries were in compliance with the provisions and financial covenants in their respective material debt agreements in all material respects.
v3.21.2
Severance
 6 Months Ended
Jun. 30, 2021
Restructuring and Related Activities [Abstract]  
Severance Severance
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.

Changes in our accrued liabilities for severance expenses were as follows:

Severance
 (Dollars in millions)
Balance at December 31, 2020$103 
Accrued to expense— 
Payments, net(51)
Balance at June 30, 2021$52 
v3.21.2
Employee Benefits
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
For detailed description of the various defined benefit pension plans (qualified and non-qualified), post-retirement benefits plans and defined contribution plan we sponsor, see Note 10—Employee Benefits to the consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020.

Net periodic benefit income for the Lumen Combined Pension Plan ("Combined Pension Plan") includes the following components:

 Combined Pension Plan
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions)
Service cost$15 13 28 29 
Interest cost49 80 99 162 
Expected return on plan assets(138)(149)(276)(298)
Recognition of prior service credit(3)(1)(5)(4)
Recognition of actuarial loss49 52 98 102 
Net periodic pension benefit income$(28)(5)(56)(9)

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

 Post-Retirement Benefit Plans
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions)
Service cost$3 3 7 7 
Interest cost11 20 23 40 
Recognition of prior service cost4 4 8 8 
Recognition of actuarial loss1 — 2 — 
Net periodic post-retirement benefit expense$19 27 40 55 
Service costs are included in the cost of services and products and selling, general and administrative line items on the consolidated statements of operations and all other costs listed above are included in other income (expense), net on the consolidated statements of operations.

Benefits paid by the Combined Pension Plan are paid through a trust that holds all of the Plan's assets. The amount of required contributions to the Combined Pension Plan in 2022 and beyond will depend on a variety of factors, most of which are beyond our control, including earnings on plan investments, prevailing interest rates, demographic experience, changes in plan benefits and changes in funding laws and regulations. We occasionally make voluntary contributions in addition to required contributions. Based on current laws and circumstances, we do not believe we are required to make any contributions to the Combined Pension Plan in 2021, but we could make voluntary contributions to the trust for the Combined Pension Plan in 2021.
v3.21.2
Earnings Per Common Share
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Earnings Per Common Share Earnings Per Common Share
Basic and diluted earnings per common share were calculated as follows:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator):
Net income$506 377 981 691 
Net income applicable to common stock for computing basic earnings per common share506 377 981 691 
Net income as adjusted for purposes of computing diluted earnings per common share$506 377 981 691 
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period1,105,403 1,097,586 1,102,877 1,095,278 
Non-vested restricted stock(18,950)(18,111)(18,413)(17,523)
Weighted-average shares outstanding for computing basic earnings per common share1,086,453 1,079,475 1,084,464 1,077,755 
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities10 10 10 10 
Shares issuable under incentive compensation plans6,939 3,082 8,020 4,453 
Number of shares as adjusted for purposes of computing diluted earnings per common share1,093,402 1,082,567 1,092,494 1,082,218 
Basic earnings per common share$0.47 0.35 0.90 0.64 
Diluted earnings per common share$0.46 0.35 0.90 0.64 

Our calculation of diluted earnings per common share excludes unvested restricted stock awards that are antidilutive as a result of unrecognized compensation cost. Such shares were 2.2 million and 8.7 million for the three months ended June 30, 2021 and 2020, respectively, and 1.2 million and 5.7 million for six months ended June 30, 2021 and 2020, respectively.
v3.21.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Our financial instruments consist of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, long-term debt, excluding finance lease and other obligations, and interest rate swap contracts. 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.

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

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

The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2021 and December 31, 2020:

  June 30, 2021December 31, 2020
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
 (Dollars in millions)
Long-term debt, excluding finance lease and other obligations2$30,848 32,085 31,542 33,217 
Interest rate swap contracts (see Note 10)
2$67 67 107 107 
v3.21.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
 
From time to time, we use derivative financial instruments, primarily interest rate swaps, to manage our exposure to fluctuations in interest rates. Our primary objective in managing interest rate risk is to decrease the volatility of our earnings and cash flows affected by changes in the underlying rates. We have floating rate long-term debt (see Note 5—Long-Term Debt and Credit Facilities). These obligations expose us to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense also decreases. We have designated our currently outstanding interest rate swap agreements as cash flow hedges. As described further below, under these hedges, we receive variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the lives of the agreements without exchange of the underlying notional amount. The change in the fair value of the interest rate swap agreements is reflected in accumulated other comprehensive income ("AOCI") and, as described below, is subsequently reclassified into earnings in the period that the hedged transaction affects earnings by virtue of qualifying as effective cash flow hedges. We do not use derivative financial instruments for speculative purposes.

As of June 30, 2021 and December 31, 2020, we evaluated the effectiveness of our hedges quantitatively and any hedges we had entered into at the time qualified as effective hedge relationships.

We may be exposed to credit-related losses in the event of non-performance by counterparties. The counterparties to any of the financial derivatives we enter into are major institutions with investment grade credit ratings. We evaluate counterparty credit risk before entering into any hedge transaction and continue to closely monitor the financial market and the risk that our counterparties will default on their obligations as part of our quarterly qualitative effectiveness evaluation.
 
Amounts accumulated in AOCI related to derivatives are indirectly recognized in earnings as periodic settlement payments are made throughout the term of the swaps.
The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets at June 30, 2021 and December 31, 2020, as follows (in millions):

June 30, 2021December 31, 2020
Derivatives designated asBalance Sheet LocationFair Value
Cash flow hedging contractsOther current and noncurrent liabilities$67 107 

The amount of unrealized losses recognized in AOCI consists of the following (in millions):

Derivatives designated as hedging instruments20212020
  Cash flow hedging contracts
Three Months Ended June 30,$— 10 
Six Months Ended June 30,$— 116 

The amount of realized losses reclassified from AOCI to the statement of operations consists of the following
(in millions):

Derivatives designated as hedging instruments20212020
  Cash flow hedging contracts
Three Months Ended June 30,$21 16 
Six Months Ended June 30,$41 21 
Amounts currently included in AOCI will be reclassified into earnings prior to the ongoing settlements of these cash flow hedging contracts until 2022. We estimate that $67 million of net losses on the interest rate swaps (based on the estimated LIBOR curve as of June 30, 2021) will be reflected in our consolidated statements of operations within the next 12 months.
v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
Jeff Storey, our chief operating decision maker ("CODM"), made changes to our segment and customer-facing sales channel reporting categories beginning in 2021 to align with operational changes designed to better support our customers. Following these changes, we now report two segments: Business and Mass Markets. The Business segment includes four sales channels: International and Global Accounts, Large Enterprise, Mid-Market Enterprise and Wholesale. These changes also include both the creation of new product categories and the realignment of products and services within previously reported product categories to better reflect product life cycles and our go-to-market approach. For Business segment revenue, we report the following product categories: Compute and Application Services, IP and Data Services, Fiber Infrastructure Services and Voice and Other, by the sales channels outlined above. For Mass Markets segment revenue, we report the following product categories: Consumer Broadband, SBG Broadband, Voice and Other and CAF II. See detailed descriptions of these product and service categories in Note 3—Revenue Recognition.

As described in more detail below, our segments are managed based on the direct costs of providing services to their customers and the associated selling, general and administrative costs (primarily salaries and commissions). Shared costs are managed separately and included in "Operations and Other" in the tables below. As referenced above, we reclassified certain prior period amounts to conform to the current period presentation. See Note 1— Background for additional detail on these changes.

At June 30, 2021, we had the following two reportable segments:
•Business Segment: Under our Business segment, we provide our products and services under four distinct sales channels to meet the needs of our enterprise and commercial customers; and
•Mass Markets Segment: Under our Mass Markets segment, we provide products and services to consumer and small business customers.
The following tables summarize our segment results for the three months ended June 30, 2021 and 2020, based on the segment categorization we were operating under at June 30, 2021.

Three Months Ended June 30, 2021
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,522 1,402 4,924 — 4,924 
Expenses:
Cost of services and products862 39 901 1,214 2,115 
Selling, general and administrative298 150 448 314 762 
Less: share-based compensation— — — (42)(42)
Total expense1,160 189 1,349 1,486 2,835 
Total adjusted EBITDA$2,362 1,213 3,575 (1,486)2,089 

Three Months Ended June 30, 2020
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,717 1,475 5,192 — 5,192 
Expenses:
Cost of services and products919 48 967 1,265 2,232 
Selling, general and administrative334 144 478 417 895 
Less: share-based compensation— — — (20)(20)
Total expense1,253 192 1,445 1,662 3,107 
Total adjusted EBITDA$2,464 1,283 3,747 (1,662)2,085 

The following tables summarize our segment results for the six months ended June 30, 2021 and 2020, based on the segment categorization we were operating under at June 30, 2021.

Six Months Ended June 30, 2021
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$7,117 2,836 9,953 — 9,953 
Expenses:
Cost of services and products1,743 82 1,825 2,426 4,251 
Selling, general and administrative604 283 887 631 1,518 
Less: share-based compensation— — — (62)(62)
Total expense2,347 365 2,712 2,995 5,707 
Total adjusted EBITDA$4,770 2,471 7,241 (2,995)4,246 
Six Months Ended June 30, 2020
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$7,454 2,966 10,420 — 10,420 
Expenses:
Cost of services and products1,826 97 1,923 2,544 4,467 
Selling, general and administrative676 284 960 788 1,748 
Less: share-based compensation— — — (89)(89)
Total expense2,502 381 2,883 3,243 6,126 
Total adjusted EBITDA$4,952 2,585 7,537 (3,243)4,294 

Revenue and Expenses

Our segment revenue includes all revenue from our two segments as described in more detail above. Our segment revenue is based upon each customer's classification. We report our segment revenue based upon all services provided to that segment's customers. Our segment expenses include specific cost of service expenses incurred as a direct result of providing services and products to segment customers, along with selling, general and administrative expenses that are directly associated with specific segment customers or activities.

The following items are excluded from our segment results, because they are centrally managed and not monitored by or reported to our CODM by segment:

•network expenses not incurred as a direct result of providing services and products to segment customers;

•centrally managed expenses such as Operations, Finance, Human Resources, Legal, Marketing, Product Management and IT, which are reported as "Operations and Other";

•depreciation and amortization expense or impairments;

•interest expense, because we manage our financing on a consolidated basis and have not allocated assets or debt to specific segments;

•stock-based compensation; and

•other income and expense items are not monitored as a part of our segment operations.
The following table reconciles total segment adjusted EBITDA to net income:

 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions)(Dollars in millions)
Total segment adjusted EBITDA$3,575 3,747 7,241 7,537 
Depreciation and amortization(1,041)(1,162)(2,191)(2,322)
Other operating expenses(1,486)(1,662)(2,995)(3,243)
Stock-based compensation(42)(20)(62)(89)
Operating income1,006 903 1,993 1,883 
Total other expense, net(332)(390)(687)(937)
Income before income taxes674 513 1,306 946 
Income tax expense168 136 325 255 
Net income$506 377 981 691 
v3.21.2
Commitments and Contingencies and Other Items
 6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies and Other Items Commitments, Contingencies and Other Items
We are subject to various claims, legal proceedings and other contingent liabilities, including the matters described below, which individually or in the aggregate could materially affect our financial condition, future results of operations or cash flows. As a matter of course, we are prepared to both litigate these matters to judgment as needed, as well as to evaluate and consider reasonable settlement opportunities.

Irrespective of its merits, litigation may be both lengthy and disruptive to our operations and could cause significant expenditure and diversion of management attention. We review our litigation accrual liabilities on a quarterly basis, but in accordance with applicable accounting guidelines only establish accrual liabilities when losses are deemed probable and reasonably estimable and only revise previously-established accrual liabilities when warranted by changes in circumstances, in each case based on then-available information. As such, as of any given date we could have exposure to losses under proceedings as to which no liability has been accrued or as to which the accrued liability is inadequate. Amounts accrued for our litigation and non-income tax contingencies at June 30, 2021 aggregated to approximately $115 million and are included in other current liabilities and other liabilities in our consolidated balance sheet as of such date. The establishment of an accrual does not mean that actual funds have been set aside to satisfy a given contingency. Thus, the resolution of a particular contingency for the amount accrued could have no effect on our results of operations but nonetheless could have an adverse effect on our cash flows.

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.

Principal Proceedings

Shareholder Class Action Suit

Lumen and certain Lumen Board of Directors members and officers were named as defendants in a putative shareholder class action lawsuit filed on June 12, 2018 in the Boulder County District Court of the state of Colorado, captioned Houser et al. v. CenturyLink, et al. The complaint asserts claims on behalf of a putative class of former Level 3 shareholders who became CenturyLink, Inc. shareholders as a result of our acquisition of Level 3. It alleges that the proxy statement provided to the Level 3 shareholders failed to disclose various material information of several kinds, including information about strategic revenue, customer loss rates, and customer account issues, among other items. The complaint seeks damages, costs and fees, rescission, rescissory damages, and other equitable relief. In May 2020, the court dismissed the complaint. Plaintiffs appealed that decision, and the appeal is pending.
State Tax Suits

Since 2012, a number of Missouri municipalities have asserted claims in the Circuit Court of St. Louis County, Missouri, alleging that we and several of our subsidiaries have underpaid taxes. These municipalities are seeking, among other things, declaratory relief regarding the application of business license and gross receipts taxes and back taxes from 2007 to the present, plus penalties and interest. In a February 2017 ruling in connection with one of these pending cases, the court entered an order awarding plaintiffs $4 million and broadening the tax base on a going-forward basis. We appealed that decision to the Missouri Supreme Court. In December 2019, it affirmed the circuit court's order in some respects and reversed it in others, remanding the case to the circuit court for further proceedings. The Missouri Supreme Court's decision reduced our exposure in the case. In a June 2021 ruling in one of the pending cases, another trial court awarded the cities of Columbia and Joplin approximately $55 million, plus statutory interest. We have appealed that decision to the Missouri Court of Appeals. That appeal is pending. If the trial court’s decision is not overturned or modified in light of the Missouri Supreme Court’s decision, it will result in a tax liability to us in excess of the reserved accruals established for these matters. We continue to vigorously defend against these claims.

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. Thereafter, based in part on the allegations made by the former employee, several legal proceedings were filed, including consumer class actions in federal and state courts, a series of securities investor class actions in federal courts and several shareholder derivative actions in federal and Louisiana state courts. The derivative cases were brought on behalf of CenturyLink, Inc. against certain current and former officers and directors of the Company and seek damages for alleged breaches of fiduciary duties.

The consumer class actions, the securities investor class actions, and the federal derivative actions were transferred to the U.S. District Court for the District of Minnesota for coordinated and consolidated pretrial proceedings as In Re: CenturyLink Sales Practices and Securities Litigation. We have settled the consumer and securities investor class actions. The consumer class settlement was previously approved by the Court and is final. The shareholder class settlement was approved by the Court in July 2021. Approximately 12,000 potential class members elected to opt out of the consumer class settlement, and we have settled the claims of approximately 11,000 such class members asserted by one law firm subject to certain conditions. The derivative actions remain pending.

We have engaged in discussions regarding related claims with a number of state attorneys general, and have entered into agreements settling certain of the consumer practices claims asserted by state attorneys general. While we do not agree with allegations raised in these matters, we have been willing to consider reasonable settlements where appropriate.

Peruvian Tax Litigation

In 2005, the Peruvian tax authorities ("SUNAT") issued tax assessments against one of our Peruvian subsidiaries asserting $26 million of additional income tax withholding and value-added taxes ("VAT"), penalties and interest for calendar years 2001 and 2002 on the basis that the Peruvian subsidiary incorrectly documented its importations. In May 2021, the Company paid the remaining amount on the fractioning regimes entered into by the Company to pay the amount assessed while it was appealed.

We challenged the assessments via administrative and then judicial review processes. In October 2011, the highest administrative review tribunal (the Tribunal) decided the central issue underlying the 2002 assessments in SUNAT's favor. We appealed the Tribunal's decision to the first judicial level, which decided the central issue in favor of Level 3. SUNAT and the Company filed cross-appeals with the court of appeal. In May 2017, the court of appeal issued a decision reversing the first judicial level. In June 2017, we filed an appeal of the decision to the Supreme Court of Justice, the final judicial level. Oral argument was held before the Supreme Court of Justice in October 2018. A decision on this case is pending.
In October 2013, the Tribunal decided the central issue underlying the 2001 assessments in SUNAT’s favor. We appealed that decision to the first judicial level in Peru, which decided the central issue in favor of SUNAT. In June 2017, we filed an appeal with the court of appeal. In November 2017, the court of appeals issued a decision affirming the first judicial level and we filed an appeal of the decision to the Supreme Court of Justice. Oral argument was held before the Supreme Court of Justice in June 2019. In May 2021, the Company was served with a favorable and final decision from the Supreme Court of Justice.

Brazilian Tax Claims

The São Paulo and Rio de Janeiro state tax authorities have issued tax assessments against our Brazilian subsidiaries for the Tax on Distribution of Goods and Services (“ICMS”), mainly with respect to revenue from leasing certain assets and revenue from the provision of Internet access services by treating such activities as the provision of communications services, to which the ICMS tax applies. We filed objections to these assessments in both states, arguing, among other things that neither the lease of assets nor the provision of Internet access qualifies as “communication services” subject to ICMS.

We have appealed to the respective state judicial courts the decisions by the respective state administrative courts that rejected our objections to these assessments. In cases in which state lower courts ruled partially in our favor finding that the lease assets are not subject to ICMS in connection, the State appealed those rulings. In other cases, the assessment was affirmed at the first administrative level and we have appealed to the second administrative level. Other assessments are still pending state judicial decisions.

We are vigorously contesting all such assessments in both states and view the assessment of ICMS on revenue from equipment leasing and Internet access to be without merit. These assessments, if upheld, could result in a loss of up to $53 million as of June 30, 2021, in excess of the reserved accruals established for these matters.

Qui Tam Action

Level 3 was notified in late 2017 of a qui tam action pending against Level 3 Communications, Inc. and others in the U.S. District Court for the Eastern District of Virginia, captioned United States of America ex rel., Stephen Bishop v. Level 3 Communications, Inc. et al. The original qui tam complaint and an amended complaint were filed under seal on November 26, 2013 and June 16, 2014, respectively. The court unsealed the complaints on October 26, 2017.

The amended complaint alleged 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 sought damages in this lawsuit of approximately $50 million. The case was settled in the second quarter of 2021 for an immaterial amount.

Other Proceedings, Disputes and Contingencies

From time to time, we are involved in other proceedings incidental to our business, including patent infringement allegations, regulatory hearings 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 during 2021 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 $300,000 in fines and penalties.
The outcome of these other proceedings described under this heading 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 us.

The matters listed above in this Note do not reflect all of our contingencies. For additional information on our contingencies, see Note 17—Commitments, Contingencies and Other Items to the consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020. 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 statements appearing above in this Note, and proceedings currently viewed as immaterial by us may ultimately materially impact us.
v3.21.2
Other Financial Information
 6 Months Ended
Jun. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Financial Information Other Financial Information
Other Current Assets

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

June 30, 2021December 31, 2020
 (Dollars in millions)
Prepaid expenses$369 290 
Income tax receivable12 7 
Materials, supplies and inventory114 105 
Contract assets53 66 
Contract acquisition costs168 173 
Contract fulfillment costs118 114 
Other72 53 
Total other current assets$906 808 
v3.21.2
Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
Information Relating to 2021

The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheet by component for the six months ended June 30, 2021:

Pension PlansPost-Retirement
Benefit Plans		Foreign Currency
Translation
Adjustment
and Other		Interest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2020$(2,197)(272)(265)(79)(2,813)
Other comprehensive loss before reclassifications— — (6)— (6)
Amounts reclassified from accumulated other comprehensive loss71 7 — 31 109 
Net current-period other comprehensive income (loss)71 7 (6)31 103 
Balance at June 30, 2021$(2,126)(265)(271)(48)(2,710)
The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2021:

Three Months Ended June 30, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$21 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$16 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$50 Other income (expense), net
Prior service cost1 Other income (expense), net
Total before tax51  
Income tax benefit(12)Income tax expense
Net of tax$39  

Six Months Ended June 30, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$41 Interest expense
Income tax benefit(10)Income tax expense
Net of tax$31 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$100 Other income (expense), net
Prior service cost3 Other income (expense), net
Total before tax103  
Income tax benefit(25)Income tax expense
Net of tax$78  
(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (income) expense related to our pension and post-retirement plans.

Information Relating to 2020

    The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three and six months ended June 30, 2020:

Pension PlansPost-Retirement
Benefit Plans		Foreign Currency
Translation
Adjustment
and Other		Interest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2019$(2,229)(184)(228)(39)(2,680)
Other comprehensive loss before reclassifications— — (230)(88)(318)
Amounts reclassified from accumulated other comprehensive loss74 6 — 16 96 
Net current-period other comprehensive income (loss)74 6 (230)(72)(222)
Balance at June 30, 2020$(2,155)(178)(458)(111)(2,902)
The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the six months ended June 30, 2020:

Three Months Ended June 30, 2020Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$16 Interest expense
Income tax expense(5)Income tax expense
Net of tax$11 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$52 Other income (expense), net
Prior service cost3 Other income (expense), net
Total before tax55  
Income tax benefit(14)Income tax expense
Net of tax$41  

Six Months Ended June 30, 2020Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$21 Interest expense
Income tax expense(5)Income tax expense
Net of tax$16 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$102 Other income (expense), net
Prior service cost4 Other income (expense), net
Total before tax106  
Income tax benefit(26)Income tax expense
Net of tax$80  
(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.
v3.21.2
Labor Union Contracts
 6 Months Ended
Jun. 30, 2021
Risks and Uncertainties [Abstract]  
Labor Union Contracts Labor Union ContractsAs of June 30, 2021, approximately 22% of our employees were represented by the Communication Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW"). Approximately 5% of our union-represented employees were subject to collective bargaining agreements that expired as of June 30, 2021 and are currently being renegotiated. Approximately 8% of our represented employees are subject to collective bargaining agreements that are scheduled to expire over the 12 month period ending June 30, 2022.
v3.21.2
Subsequent Events
 6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsOn July 25, 2021, affiliates of Level 3 Parent, LLC, an indirect wholly-owned subsidiary of Lumen Technologies, Inc., entered into a definitive agreement to divest Lumen’s Latin American business to an affiliate of a fund advised by Stonepeak Partners LP in exchange for $2.735 billion cash, subject to certain working capital and other purchase price adjustments. Level 3 Parent, LLC expects to close the transaction in the first half of 2022, upon receipt of all requisite regulatory approvals in the U.S. and certain countries where the Latin American business operates, as well as the satisfaction of other customary conditions. We have not yet determined the final pre-tax gain or loss on the transaction as a result of various allocations which will be required in connection with consummating the transaction and related restructuring transactions. The purchase agreement contains various customary covenants for transactions of this type, including various indemnities.
On August 3, 2021, Lumen and certain of its wholly-owned subsidiaries entered into a definitive agreement to divest their incumbent local exchange business conducted within 20 Midwestern and Southern states to an affiliate of funds advised by Apollo Global Management, Inc. In exchange, Lumen and its subsidiaries would receive $7.5 billion, subject to (i) offsets for assumed indebtedness (expected to be approximately $1.4 billion) and certain of purchaser’s transaction expenses (estimated to be approximately $245 million) and (ii) working capital and other customary purchase price adjustments. Lumen expects to close the transaction in the second half of 2022 upon receipt of all regulatory approvals and the satisfaction of other customary closing conditions. We have not yet determined the final pre-tax gain or loss on the transaction as a result of various allocations which will be required in connection with consummating the transaction and related restructuring transactions. The definitive purchase agreement contains various customary covenants for transactions of this type, including certain limited indemnities.

In August 2021, our Board of Directors authorized a new 24-month program to repurchase up to an aggregate of $1.0 billion of our outstanding common stock. This new stock repurchase program took effect on August 3, 2021, immediately upon the public announcement thereof. As of August 4, 2021, we had not repurchased any shares of common stock under this new program.
v3.21.2
Background (Policies)
 6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

Our consolidated balance sheet as of December 31, 2020, 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 U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe 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 six 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 and the accompanying notes 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, 2020.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. 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.
Reclassification We reclassified certain prior period amounts to conform to the current period presentation, including the categorization of our revenue and expenses in our segment reporting. See Note 11—Segment Information for additional information. These changes had no impact on total operating revenue, total operating expenses or net income for any period.
Operating Leases Operating lease assets are included in other, net under goodwill and other assets on our consolidated balance sheets. Noncurrent operating lease liabilities are included in other under deferred credits and other liabilities on our consolidated balance sheets.
Operating Lease Revenue
Operating Lease Revenue

Lumen Technologies leases various dark fiber, office facilities, colocation facilities, switching facilities, other network sites and service equipment to third parties under operating leases. Lease and sublease income are included in operating revenue in our consolidated statements of operations.
Recently Adopted and Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncements

Debt

On January 1, 2021, we adopted ASU 2020-09, "Debt (Topic 470) Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762" ("ASU 2020-09"). This ASU amends and supersedes various SEC paragraphs to reflect SEC Release No. 33-10762, which includes amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees. The adoption of ASU 2020-09 did not have a material impact to our consolidated financial statements.

Investments

On January 1, 2021, we adopted ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815)" ("ASU 2020-01"). This ASU, among other things, clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments - Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. As of June 30, 2021, we determined there was no application or discontinuation of the equity method during the reporting periods. The adoption of ASU 2020-01 did not have a material impact to our consolidated financial statements.

Income taxes

On January 1, 2021, we adopted ASU 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)" ("ASU 2019-12"). This ASU removes certain exceptions for investments, intra-period allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The adoption of ASU 2019-12 did not have a material impact to our consolidated financial statements.

Measurement of Credit Losses on Financial Instruments

We adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") on January 1, 2020 and recognized a cumulative adjustment to our accumulated deficit as of the date of adoption of $9 million, net of tax effect of $2 million. Please refer to Note 4—Credit Losses on Financial Instruments for more information.

Recently Issued Accounting Pronouncements

In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope" ("ASU 2021-01"), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. ASU 2021-01 provides option guidance for a limited time to ease the potential burden in accounting for reference rate reform. Based on our review of our key material contracts through June 30, 2021, we do not expect ASU 2021-01 to have any material impact on the consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04" or "Reference Rate Reform"), designed to ease the burden of accounting for contract modifications related to the global market-wide reference rate transition period. Subject to certain criteria, ASU 2020-04 provides qualifying entities the option to apply expedients and exceptions to contract modifications and hedging accounting relationships made until December 31, 2022. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. ASU 2020-04 provides optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. Based on our review of our key material contracts through June 30, 2021, we do not expect ASU 2020-04 to have any material impact on the consolidated financial statements.
v3.21.2
Goodwill, Customer Relationships and Other Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
Goodwill, customer relationships and other intangible assets consisted of the following:

June 30, 2021December 31, 2020
(Dollars in millions)
Goodwill$18,867 18,870 
Indefinite-life intangible assets$9 278 
Other intangible assets subject to amortization: 
Customer relationships, less accumulated amortization of $11,546 and $11,060
5,856 6,344 
Capitalized software, less accumulated amortization of $3,432 and $3,279
1,481 1,520 
Trade names, patents and other, less accumulated amortization of $149 and $120
317 77 
Total other intangible assets, net$7,663 8,219 
Schedule of Goodwill The following table shows the rollforward of goodwill assigned to our reportable segments, including the reorganization, from December 31, 2020 through June 30, 2021:
 International and Global AccountsEnterpriseSmall and Medium BusinessWholesaleConsumerBusinessMass MarketsTotal
 (Dollars in millions)
As of December 31, 2020(1)
$2,555 4,738 2,808 3,114 5,655 — — 18,870 
January 2021 reorganization(2,555)(4,738)(2,808)(3,114)(5,655)12,173 6,697 — 
Effect of foreign currency exchange rate change and other— — — — — (3)— (3)
As of June 30, 2021(1)
$— — — — — 12,170 6,697 18,867 
______________________________________________________________________
(1)Goodwill at June 30, 2021 and December 31, 2020 is net of accumulated impairment losses of $12.9 billion.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
We estimate that total amortization expense for intangible assets for the years ending December 31, 2021 through 2025 will be as follows:

 (Dollars in millions)
2021 (remaining six months)$597 
20221,087 
2023991 
2024893 
2025803 
v3.21.2
Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue
The following tables provide total revenue by segment, sales channel and product category. It also provides the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:

Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services$179 (70)109 192 (64)128 
IP and Data Services427 — 427 432 — 432 
Fiber Infrastructure Services216 (32)184 202 (28)174 
Voice and Other182 — 182 205 — 205 
Total IGAM Revenue1,004 (102)902 1,031 (92)939 
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
Large Enterprise
Compute and Application Services172 (16)156 160 (22)138 
IP and Data Services388 — 388 400 (1)399 
Fiber Infrastructure Services127 (12)115 136 (13)123 
Voice and Other244 — 244 277 — 277 
Total Large Enterprise Revenue931 (28)903 973 (36)937 
Mid-Market Enterprise
Compute and Application Services36 (8)28 35 (3)32 
IP and Data Services438 (2)436 463 (1)462 
Fiber Infrastructure Services53 (2)51 57 (3)54 
Voice and Other155 — 155 200 — 200 
Total Mid-Market Enterprise Revenue682 (12)670 755 (7)748 
Wholesale
Compute and Application Services49 (41)8 45 (39)6 
IP and Data Services297 — 297 313 — 313 
Fiber Infrastructure Services155 (28)127 152 (30)122 
Voice and Other404 (62)342 448 (65)383 
Total Wholesale Revenue905 (131)774 958 (134)824 
Business Segment by Product Category
Compute and Application Services436 (135)301 432 (128)304 
IP and Data Services1,550 (2)1,548 1,608 (2)1,606 
Fiber Infrastructure Services551 (74)477 547 (74)473 
Voice and Other985 (62)923 1,130 (65)1,065 
Total Business Segment Revenue$3,522 (273)3,249 3,717 (269)3,448 
Mass Markets Segment by Product Category
Consumer Broadband$723 (53)670 726 (55)671 
SBG Broadband39 (4)35 39 (5)34 
Voice and Other518 (19)499 587 (29)558 
CAF II122 (122)— 123 (123)— 
Total Mass Markets Segment$1,402 (198)1,204 1,475 (212)1,263 
Total Revenue$4,924 (471)4,453 5,192 (481)4,711 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services$358 (139)219 393 (133)260 
IP and Data Services854 — 854 869 — 869 
Fiber Infrastructure Services432 (62)370 404 (54)350 
Voice and Other373 — 373 406 — 406 
Total IGAM Revenue2,017 (201)1,816 2,072 (187)1,885 
Large Enterprise
Compute and Application Services337 (31)306 314 (39)275 
IP and Data Services783 — 783 801 (1)800 
Fiber Infrastructure Services251 (27)224 274 (23)251 
Voice and Other497 — 497 550 — 550 
Total Large Enterprise Revenue1,868 (58)1,810 1,939 (63)1,876 
Mid-Market Enterprise
Compute and Application Services72 (16)56 69 (11)58 
IP and Data Services891 (3)888 929 (2)927 
Fiber Infrastructure Services113 (4)109 111 (7)104 
Voice and Other322 — 322 407 — 407 
Total Mid-Market Enterprise Revenue1,398 (23)1,375 1,516 (20)1,496 
Wholesale
Compute and Application Services97 (81)16 91 (79)12 
IP and Data Services602 — 602 631 — 631 
Fiber Infrastructure Services309 (59)250 305 (60)245 
Voice and Other826 (125)701 900 (133)767 
Total Wholesale Revenue1,834 (265)1,569 1,927 (272)1,655 
Business Segment by Product Category
Compute and Application Services864 (267)597 867 (262)605 
IP and Data Services3,130 (3)3,127 3,230 (3)3,227 
Fiber Infrastructure Services1,105 (152)953 1,094 (144)950 
Voice and Other2,018 (125)1,893 2,263 (133)2,130 
Total Business Segment Revenue$7,117 (547)6,570 7,454 (542)6,912 
Mass Markets Segment by Product Category
Consumer Broadband$1,454 (105)1,349 1,448 (108)1,340 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Total revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customersTotal revenue
Adjustments for non-ASC 606 revenue (1)
Total revenue from contracts with customers
(Dollars in millions)
SBG Broadband78 (8)70 78 (8)70 
Voice and Other1,059 (40)1,019 1,194 (58)1,136 
CAF II245 (245)— 246 (246)— 
Total Mass Markets Segment$2,836 (398)2,438 2,966 (420)2,546 
Total Revenue$9,953 (945)9,008 10,420 (962)9,458 
_____________________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.
Contract with Customer, Asset and Liability
The following table provides balances of customer receivables, contract assets and contract liabilities as of June 30, 2021 and December 31, 2020:

June 30, 2021December 31, 2020
 (Dollars in millions)
Customer receivables(1)
$1,830 1,889 
Contract assets85 108 
Contract liabilities876 950 
______________________________________________________________________
(1)Reflects gross customer receivables of $2.0 billion and $2.1 billion, net of allowance for credit losses of $137 million and $174 million, at June 30, 2021 and December 31, 2020, respectively.
Capitalized Contract Cost
The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance$279 216 320 220 
Costs incurred45 38 36 34 
Amortization(53)(37)(56)(35)
End of period balance$271 217 300 219 

Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance$289 216 326 221 
Costs incurred89 75 85 70 
Amortization(107)(74)(111)(72)
End of period balance$271 217 300 219 
v3.21.2
Credit Losses on Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Credit Loss [Abstract]  
Financing Receivable, Allowance for Credit Loss
The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the six months ended June 30, 2021:

BusinessMass MarketsTotal
(Dollars in millions)
Beginning balance at January 1, 2021(1)
$109 82 191 
Provision for expected losses21 32 53 
Write-offs charged against the allowance(35)(82)(117)
Recoveries collected8 17 25 
Ending balance at June 30, 2021
$103 49 152 
______________________________________________________________________ 
(1)As described in Note 11—Segment Information, we completed an internal reorganization in January 2021. As a result of this change, allowance for credit losses previously included in the Consumer and Business portfolio of $70 million related to consumer and $12 million related to our small business group, respectively, were reclassified to the Mass Markets allowance for credit losses on January 1, 2021.
v3.21.2
Long-Term Debt and Credit Facilities (Tables)
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Including Unamortized Discounts and Premiums
The following chart reflects the consolidated long-term debt of Lumen Technologies, Inc. and its subsidiaries, including unamortized discounts and premiums, net and unamortized debt issuance costs, but excluding intercompany debt:
Interest Rates(1)
Maturities(1)
June 30, 2021December 31, 2020
   (Dollars in millions)
Senior Secured Debt: (2)
Lumen Technologies, Inc.
Revolving Credit Facility (7)
LIBOR + 2.00%
2025$— 150 
Term Loan A (3) (7)
LIBOR + 2.00%
20251,079 1,108 
Term Loan A-1 (3) (7)
LIBOR + 2.00%
2025308 316 
Term Loan B (4) (7)
LIBOR + 2.25%
20274,925 4,950 
Senior notes4.000%20271,250 1,250 
Subsidiaries:
Level 3 Financing, Inc.
Tranche B 2027 Term Loan (5) (7)
LIBOR + 1.75%
20273,111 3,111 
Senior notes
3.400% - 3.875%
2027 - 2029
1,500 1,500 
Embarq Corporation subsidiaries
First mortgage bonds
7.125% - 8.375%
2023 - 2025
138 138 
Senior Notes and Other Debt:    
Lumen Technologies, Inc.
Senior notes
4.500% - 7.650%
2022 - 2042
8,414 8,645 
Subsidiaries:
Level 3 Financing, Inc.
Senior notes
3.625% - 5.375%
2025 - 2029
5,515 5,515 
Qwest Corporation
Senior notes
6.500% - 7.750%
2021 - 2057
2,935 3,170 
Term Loan (6) (7)
LIBOR + 2.00%
2027215 215 
Qwest Capital Funding, Inc.
Senior notes
6.875% - 7.750%
2021 - 2031
352 352 
Embarq Corporation and subsidiary
Senior note7.995%20361,437 1,437 
Finance lease and other obligationsVariousVarious321 295 
Unamortized discounts, net  (96)(78)
Unamortized debt issuance costs(235)(237)
Total long-term debt  31,169 31,837 
Less current maturities   (2,595)(2,427)
Long-term debt, excluding current maturities  $28,574 29,410 
______________________________________________________________________ 
(1)As of June 30, 2021.
(2)See Note 6—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2020 for a description of certain parent or subsidiary guarantees and liens securing this debt.
(3)Term Loans A and A-1 had interest rates of 2.104% and 2.147% as of June 30, 2021 and December 31, 2020, respectively.
(4)Term Loan B had interest rates of 2.354% and 2.397% as of June 30, 2021 and December 31, 2020, respectively.
(5)The Tranche B 2027 Term Loan had interest rates of 1.854% and 1.897% as of June 30, 2021 and December 31, 2020, respectively.
(6)Qwest Corporation Term Loan had interest rates of 2.110% and 2.150% as of June 30, 2021 and December 31, 2020, respectively.
(7)See Note 1— Background for our considerations of the impact of Reference Rate Reform on our debt subject to rate reference changes from LIBOR.
Schedule of Maturities of Long-term Debt
Set forth below is the aggregate principal amount of our long-term debt as of June 30, 2021 (excluding unamortized discounts, net, and unamortized debt issuance costs), maturing during the following years:

 (Dollars in millions)
2021 (remaining six months)$1,127 
20221,542 
2023966 
20241,143 
20252,908 
2026 and thereafter23,814 
Total long-term debt$31,500 
v3.21.2
Severance (Tables)
 6 Months Ended
Jun. 30, 2021
Restructuring and Related Activities [Abstract]  
Schedule of Changes in Accrued Liabilities for Severance Expenses
Changes in our accrued liabilities for severance expenses were as follows:

Severance
 (Dollars in millions)
Balance at December 31, 2020$103 
Accrued to expense— 
Payments, net(51)
Balance at June 30, 2021$52 
v3.21.2
Employee Benefits (Tables)
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Pension Benefit (Income) Expense and Post-retirement Benefit Expense
Net periodic benefit income for the Lumen Combined Pension Plan ("Combined Pension Plan") includes the following components:

 Combined Pension Plan
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions)
Service cost$15 13 28 29 
Interest cost49 80 99 162 
Expected return on plan assets(138)(149)(276)(298)
Recognition of prior service credit(3)(1)(5)(4)
Recognition of actuarial loss49 52 98 102 
Net periodic pension benefit income$(28)(5)(56)(9)

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

 Post-Retirement Benefit Plans
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions)
Service cost$3 3 7 7 
Interest cost11 20 23 40 
Recognition of prior service cost4 4 8 8 
Recognition of actuarial loss1 — 2 — 
Net periodic post-retirement benefit expense$19 27 40 55 
v3.21.2
Earnings Per Common Share (Tables)
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Common Share
Basic and diluted earnings per common share were calculated as follows:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator):
Net income$506 377 981 691 
Net income applicable to common stock for computing basic earnings per common share506 377 981 691 
Net income as adjusted for purposes of computing diluted earnings per common share$506 377 981 691 
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period1,105,403 1,097,586 1,102,877 1,095,278 
Non-vested restricted stock(18,950)(18,111)(18,413)(17,523)
Weighted-average shares outstanding for computing basic earnings per common share1,086,453 1,079,475 1,084,464 1,077,755 
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities10 10 10 10 
Shares issuable under incentive compensation plans6,939 3,082 8,020 4,453 
Number of shares as adjusted for purposes of computing diluted earnings per common share1,093,402 1,082,567 1,092,494 1,082,218 
Basic earnings per common share$0.47 0.35 0.90 0.64 
Diluted earnings per common share$0.46 0.35 0.90 0.64 
v3.21.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
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 financial liabilities as of June 30, 2021 and December 31, 2020:

  June 30, 2021December 31, 2020
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
 (Dollars in millions)
Long-term debt, excluding finance lease and other obligations2$30,848 32,085 31,542 33,217 
Interest rate swap contracts (see Note 10)
2$67 67 107 107 
v3.21.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets at June 30, 2021 and December 31, 2020, as follows (in millions):

June 30, 2021December 31, 2020
Derivatives designated asBalance Sheet LocationFair Value
Cash flow hedging contractsOther current and noncurrent liabilities$67 107 
Derivative Instruments, Gain (Loss)
The amount of unrealized losses recognized in AOCI consists of the following (in millions):

Derivatives designated as hedging instruments20212020
  Cash flow hedging contracts
Three Months Ended June 30,$— 10 
Six Months Ended June 30,$— 116 
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component
The amount of realized losses reclassified from AOCI to the statement of operations consists of the following
(in millions):

Derivatives designated as hedging instruments20212020
  Cash flow hedging contracts
Three Months Ended June 30,$21 16 
Six Months Ended June 30,$41 21 
The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2021:

Three Months Ended June 30, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$21 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$16 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$50 Other income (expense), net
Prior service cost1 Other income (expense), net
Total before tax51  
Income tax benefit(12)Income tax expense
Net of tax$39  

Six Months Ended June 30, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$41 Interest expense
Income tax benefit(10)Income tax expense
Net of tax$31 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$100 Other income (expense), net
Prior service cost3 Other income (expense), net
Total before tax103  
Income tax benefit(25)Income tax expense
Net of tax$78  
(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (income) expense 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 six months ended June 30, 2020:

Three Months Ended June 30, 2020Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$16 Interest expense
Income tax expense(5)Income tax expense
Net of tax$11 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$52 Other income (expense), net
Prior service cost3 Other income (expense), net
Total before tax55  
Income tax benefit(14)Income tax expense
Net of tax$41  

Six Months Ended June 30, 2020Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$21 Interest expense
Income tax expense(5)Income tax expense
Net of tax$16 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$102 Other income (expense), net
Prior service cost4 Other income (expense), net
Total before tax106  
Income tax benefit(26)Income tax expense
Net of tax$80  
(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.
v3.21.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Schedule of Segment Results
The following tables summarize our segment results for the three months ended June 30, 2021 and 2020, based on the segment categorization we were operating under at June 30, 2021.

Three Months Ended June 30, 2021
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,522 1,402 4,924 — 4,924 
Expenses:
Cost of services and products862 39 901 1,214 2,115 
Selling, general and administrative298 150 448 314 762 
Less: share-based compensation— — — (42)(42)
Total expense1,160 189 1,349 1,486 2,835 
Total adjusted EBITDA$2,362 1,213 3,575 (1,486)2,089 

Three Months Ended June 30, 2020
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,717 1,475 5,192 — 5,192 
Expenses:
Cost of services and products919 48 967 1,265 2,232 
Selling, general and administrative334 144 478 417 895 
Less: share-based compensation— — — (20)(20)
Total expense1,253 192 1,445 1,662 3,107 
Total adjusted EBITDA$2,464 1,283 3,747 (1,662)2,085 

The following tables summarize our segment results for the six months ended June 30, 2021 and 2020, based on the segment categorization we were operating under at June 30, 2021.

Six Months Ended June 30, 2021
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$7,117 2,836 9,953 — 9,953 
Expenses:
Cost of services and products1,743 82 1,825 2,426 4,251 
Selling, general and administrative604 283 887 631 1,518 
Less: share-based compensation— — — (62)(62)
Total expense2,347 365 2,712 2,995 5,707 
Total adjusted EBITDA$4,770 2,471 7,241 (2,995)4,246 
Six Months Ended June 30, 2020
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$7,454 2,966 10,420 — 10,420 
Expenses:
Cost of services and products1,826 97 1,923 2,544 4,467 
Selling, general and administrative676 284 960 788 1,748 
Less: share-based compensation— — — (89)(89)
Total expense2,502 381 2,883 3,243 6,126 
Total adjusted EBITDA$4,952 2,585 7,537 (3,243)4,294 
Reconciliation of Operating Profit (Loss) From Segments to Consolidated Net Income
The following table reconciles total segment adjusted EBITDA to net income:

 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
 (Dollars in millions)(Dollars in millions)
Total segment adjusted EBITDA$3,575 3,747 7,241 7,537 
Depreciation and amortization(1,041)(1,162)(2,191)(2,322)
Other operating expenses(1,486)(1,662)(2,995)(3,243)
Stock-based compensation(42)(20)(62)(89)
Operating income1,006 903 1,993 1,883 
Total other expense, net(332)(390)(687)(937)
Income before income taxes674 513 1,306 946 
Income tax expense168 136 325 255 
Net income$506 377 981 691 
v3.21.2
Other Financial Information (Tables)
 6 Months Ended
Jun. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Components of Other Current Assets
The following table presents details of other current assets reflected in our consolidated balance sheets:

June 30, 2021December 31, 2020
 (Dollars in millions)
Prepaid expenses$369 290 
Income tax receivable12 7 
Materials, supplies and inventory114 105 
Contract assets53 66 
Contract acquisition costs168 173 
Contract fulfillment costs118 114 
Other72 53 
Total other current assets$906 808 
v3.21.2
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Summary of the Entity's Accumulated Other Comprehensive Income (Loss) by Component
The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheet by component for the six months ended June 30, 2021:

Pension PlansPost-Retirement
Benefit Plans		Foreign Currency
Translation
Adjustment
and Other		Interest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2020$(2,197)(272)(265)(79)(2,813)
Other comprehensive loss before reclassifications— — (6)— (6)
Amounts reclassified from accumulated other comprehensive loss71 7 — 31 109 
Net current-period other comprehensive income (loss)71 7 (6)31 103 
Balance at June 30, 2021$(2,126)(265)(271)(48)(2,710)
The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three and six months ended June 30, 2020:
Pension PlansPost-Retirement
Benefit Plans		Foreign Currency
Translation
Adjustment
and Other		Interest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2019$(2,229)(184)(228)(39)(2,680)
Other comprehensive loss before reclassifications— — (230)(88)(318)
Amounts reclassified from accumulated other comprehensive loss74 6 — 16 96 
Net current-period other comprehensive income (loss)74 6 (230)(72)(222)
Balance at June 30, 2020$(2,155)(178)(458)(111)(2,902)
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component
The amount of realized losses reclassified from AOCI to the statement of operations consists of the following
(in millions):

Derivatives designated as hedging instruments20212020
  Cash flow hedging contracts
Three Months Ended June 30,$21 16 
Six Months Ended June 30,$41 21 
The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2021:

Three Months Ended June 30, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$21 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$16 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$50 Other income (expense), net
Prior service cost1 Other income (expense), net
Total before tax51  
Income tax benefit(12)Income tax expense
Net of tax$39  

Six Months Ended June 30, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$41 Interest expense
Income tax benefit(10)Income tax expense
Net of tax$31 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$100 Other income (expense), net
Prior service cost3 Other income (expense), net
Total before tax103  
Income tax benefit(25)Income tax expense
Net of tax$78  
(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (income) expense 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 six months ended June 30, 2020:

Three Months Ended June 30, 2020Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$16 Interest expense
Income tax expense(5)Income tax expense
Net of tax$11 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$52 Other income (expense), net
Prior service cost3 Other income (expense), net
Total before tax55  
Income tax benefit(14)Income tax expense
Net of tax$41  

Six Months Ended June 30, 2020Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$21 Interest expense
Income tax expense(5)Income tax expense
Net of tax$16 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$102 Other income (expense), net
Prior service cost4 Other income (expense), net
Total before tax106  
Income tax benefit(26)Income tax expense
Net of tax$80  
(1)See Note 7—Employee Benefits for additional information on our net periodic benefit (expense) income related to our pension and post-retirement plans.
v3.21.2
Background - Basis of Presentation (Details) - USD ($)
Jun. 30, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Book overdraft balance $ 0 $ 0
v3.21.2
Background - Accounting Pronouncements (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2019
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Stockholders' equity $ 11,706 $ 13,462 $ 11,706 $ 13,462     $ 11,162  
Income tax expense 168 136 325 255        
Accumulated Deficit                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Stockholders' equity $ (7,050) $ (6,109) $ (7,050) $ (6,109) $ (6,814) $ (7,556) $ (8,031) $ (6,486)
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Stockholders' equity         9      
Income tax expense         $ 2      
v3.21.2
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill, Customer Relationships, and Other Intangible Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Jan. 31, 2021
Dec. 31, 2020
Goodwill [Line Items]      
Goodwill $ 18,867 $ 0 $ 18,870
Indefinite-life intangible assets 9   278
Total other intangible assets, net 7,663   8,219
Customer relationships      
Goodwill [Line Items]      
Finite-lived intangible assets, net 5,856   6,344
Accumulated amortization 11,546   11,060
Capitalized software      
Goodwill [Line Items]      
Finite-lived intangible assets, net 1,481   1,520
Accumulated amortization 3,432   3,279
Trade names, patents and other      
Goodwill [Line Items]      
Finite-lived intangible assets, net 317   77
Accumulated amortization $ 149   $ 120
v3.21.2
Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details)
 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2021
USD ($)
Jan. 01, 2021
USD ($)
Jun. 30, 2021
USD ($)
$ / shares
Jun. 30, 2020
USD ($)
$ / shares
Jun. 30, 2021
USD ($)
segment
$ / shares
Jun. 30, 2020
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Goodwill and Intangible Assets Disclosure [Abstract]              
Number of reportable segments | segment         2    
Number of operating segments | segment         2    
Impairment loss $ 0            
Intangible assets, gross (including goodwill)     $ 41,700,000,000   $ 41,700,000,000    
Change in Accounting Estimate [Line Items]              
Amortization of intangible assets     318,000,000 $ 440,000,000 743,000,000 $ 871,000,000  
Net income     $ (506,000,000) $ (377,000,000) $ (981,000,000) $ (691,000,000)  
Basic earnings per common share (in dollars per share) | $ / shares     $ (0.47) $ (0.35) $ (0.90) $ (0.64)  
Diluted earnings per common share (in dollars per share) | $ / shares     $ (0.46) $ (0.35) $ (0.90) $ (0.64)  
Reclassification of intangible assets              
Change in Accounting Estimate [Line Items]              
Amortization of intangible assets     $ 7,000,000   $ 15,000,000    
Net income     $ 5,000,000   $ 11,000,000    
Basic earnings per common share (in dollars per share) | $ / shares         $ 0.01    
Diluted earnings per common share (in dollars per share) | $ / shares         $ 0.01    
Reclassification of intangible assets | Forecast              
Change in Accounting Estimate [Line Items]              
Amortization of intangible assets             $ 30,000,000
Net income             $ 23,000,000
Basic earnings per common share (in dollars per share) | $ / shares             $ 0.02
Diluted earnings per common share (in dollars per share) | $ / shares             $ 0.02
Reclassification of intangible assets | Right-of-way              
Change in Accounting Estimate [Line Items]              
Finite-lived intangible assets   $ 268,000,000          
Remaining amortization period   9 years          
v3.21.2
Goodwill, Customer Relationships and Other Intangible Assets - Rollforward of Goodwill (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
Goodwill [Roll Forward]  
As of beginning of period $ 18,870
Effect of foreign currency exchange rate change and other (3)
As of end of period 18,867
Accumulated impairment losses 12,900
International and Global Accounts  
Goodwill [Roll Forward]  
As of beginning of period 2,555
Enterprise  
Goodwill [Roll Forward]  
As of beginning of period 4,738
Small and Medium Business  
Goodwill [Roll Forward]  
As of beginning of period 2,808
Wholesale  
Goodwill [Roll Forward]  
As of beginning of period 3,114
Consumer  
Goodwill [Roll Forward]  
As of beginning of period 5,655
Business  
Goodwill [Roll Forward]  
Effect of foreign currency exchange rate change and other (3)
As of end of period 12,170
Mass Markets  
Goodwill [Roll Forward]  
Effect of foreign currency exchange rate change and other 0
As of end of period $ 6,697
v3.21.2
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Amortization Expense (Details)
$ in Millions
Jun. 30, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2021 (remaining six months) $ 597
2022 1,087
2023 991
2024 893
2025 $ 803
v3.21.2
Revenue Recognition - Additional Information (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
category
Jun. 30, 2020
USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Lease income | $ $ 327 $ 333 $ 659 $ 666
Percent of operating revenue 7.00% 6.00% 7.00% 6.00%
Revenue recognized | $ $ 58 $ 59 $ 483 $ 554
Minimum        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Contract term     1 year  
Maximum        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Contract term     5 years  
Weighted Average | Consumer Customers        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Length of customer life     30 months  
Weighted Average | Business Customers        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Length of customer life     30 months  
Business        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Number of categories of products and services | category     4  
Mass Markets        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Number of categories of products and services | category     4  
v3.21.2
Revenue Recognition - Revenue by Segment, Sales Channel and Product Category (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Disaggregation of Revenue [Line Items]        
Total revenue $ 4,924 $ 5,192 $ 9,953 $ 10,420
Adjustments for non-ASC 606 revenue (471) (481) (945) (962)
Total revenue from contracts with customers 4,453 4,711 9,008 9,458
Operating Segments        
Disaggregation of Revenue [Line Items]        
Total revenue 4,924 5,192 9,953 10,420
Operating Segments | Business        
Disaggregation of Revenue [Line Items]        
Total revenue 3,522 3,717 7,117 7,454
Adjustments for non-ASC 606 revenue (273) (269) (547) (542)
Total revenue from contracts with customers 3,249 3,448 6,570 6,912
Operating Segments | Business | Compute and Application Services        
Disaggregation of Revenue [Line Items]        
Total revenue 436 432 864 867
Adjustments for non-ASC 606 revenue (135) (128) (267) (262)
Total revenue from contracts with customers 301 304 597 605
Operating Segments | Business | IP and Data Services        
Disaggregation of Revenue [Line Items]        
Total revenue 1,550 1,608 3,130 3,230
Adjustments for non-ASC 606 revenue (2) (2) (3) (3)
Total revenue from contracts with customers 1,548 1,606 3,127 3,227
Operating Segments | Business | Fiber Infrastructure Services        
Disaggregation of Revenue [Line Items]        
Total revenue 551 547 1,105 1,094
Adjustments for non-ASC 606 revenue (74) (74) (152) (144)
Total revenue from contracts with customers 477 473 953 950
Operating Segments | Business | Voice and Other        
Disaggregation of Revenue [Line Items]        
Total revenue 985 1,130 2,018 2,263
Adjustments for non-ASC 606 revenue (62) (65) (125) (133)
Total revenue from contracts with customers 923 1,065 1,893 2,130
Operating Segments | Business | International and Global Accounts        
Disaggregation of Revenue [Line Items]        
Total revenue 1,004 1,031 2,017 2,072
Adjustments for non-ASC 606 revenue (102) (92) (201) (187)
Total revenue from contracts with customers 902 939 1,816 1,885
Operating Segments | Business | International and Global Accounts | Compute and Application Services        
Disaggregation of Revenue [Line Items]        
Total revenue 179 192 358 393
Adjustments for non-ASC 606 revenue (70) (64) (139) (133)
Total revenue from contracts with customers 109 128 219 260
Operating Segments | Business | International and Global Accounts | IP and Data Services        
Disaggregation of Revenue [Line Items]        
Total revenue 427 432 854 869
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 427 432 854 869
Operating Segments | Business | International and Global Accounts | Fiber Infrastructure Services        
Disaggregation of Revenue [Line Items]        
Total revenue 216 202 432 404
Adjustments for non-ASC 606 revenue (32) (28) (62) (54)
Total revenue from contracts with customers 184 174 370 350
Operating Segments | Business | International and Global Accounts | Voice and Other        
Disaggregation of Revenue [Line Items]        
Total revenue 182 205 373 406
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 182 205 373 406
Operating Segments | Business | Large Enterprise        
Disaggregation of Revenue [Line Items]        
Total revenue 931 973 1,868 1,939
Adjustments for non-ASC 606 revenue (28) (36) (58) (63)
Total revenue from contracts with customers 903 937 1,810 1,876
Operating Segments | Business | Large Enterprise | Compute and Application Services        
Disaggregation of Revenue [Line Items]        
Total revenue 172 160 337 314
Adjustments for non-ASC 606 revenue (16) (22) (31) (39)
Total revenue from contracts with customers 156 138 306 275
Operating Segments | Business | Large Enterprise | IP and Data Services        
Disaggregation of Revenue [Line Items]        
Total revenue 388 400 783 801
Adjustments for non-ASC 606 revenue 0 (1) 0 (1)
Total revenue from contracts with customers 388 399 783 800
Operating Segments | Business | Large Enterprise | Fiber Infrastructure Services        
Disaggregation of Revenue [Line Items]        
Total revenue 127 136 251 274
Adjustments for non-ASC 606 revenue (12) (13) (27) (23)
Total revenue from contracts with customers 115 123 224 251
Operating Segments | Business | Large Enterprise | Voice and Other        
Disaggregation of Revenue [Line Items]        
Total revenue 244 277 497 550
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 244 277 497 550
Operating Segments | Business | Mid-Market Enterprise        
Disaggregation of Revenue [Line Items]        
Total revenue 682 755 1,398 1,516
Adjustments for non-ASC 606 revenue (12) (7) (23) (20)
Total revenue from contracts with customers 670 748 1,375 1,496
Operating Segments | Business | Mid-Market Enterprise | Compute and Application Services        
Disaggregation of Revenue [Line Items]        
Total revenue 36 35 72 69
Adjustments for non-ASC 606 revenue (8) (3) (16) (11)
Total revenue from contracts with customers 28 32 56 58
Operating Segments | Business | Mid-Market Enterprise | IP and Data Services        
Disaggregation of Revenue [Line Items]        
Total revenue 438 463 891 929
Adjustments for non-ASC 606 revenue (2) (1) (3) (2)
Total revenue from contracts with customers 436 462 888 927
Operating Segments | Business | Mid-Market Enterprise | Fiber Infrastructure Services        
Disaggregation of Revenue [Line Items]        
Total revenue 53 57 113 111
Adjustments for non-ASC 606 revenue (2) (3) (4) (7)
Total revenue from contracts with customers 51 54 109 104
Operating Segments | Business | Mid-Market Enterprise | Voice and Other        
Disaggregation of Revenue [Line Items]        
Total revenue 155 200 322 407
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 155 200 322 407
Operating Segments | Business | Wholesale        
Disaggregation of Revenue [Line Items]        
Total revenue 905 958 1,834 1,927
Adjustments for non-ASC 606 revenue (131) (134) (265) (272)
Total revenue from contracts with customers 774 824 1,569 1,655
Operating Segments | Business | Wholesale | Compute and Application Services        
Disaggregation of Revenue [Line Items]        
Total revenue 49 45 97 91
Adjustments for non-ASC 606 revenue (41) (39) (81) (79)
Total revenue from contracts with customers 8 6 16 12
Operating Segments | Business | Wholesale | IP and Data Services        
Disaggregation of Revenue [Line Items]        
Total revenue 297 313 602 631
Adjustments for non-ASC 606 revenue 0 0 0 0
Total revenue from contracts with customers 297 313 602 631
Operating Segments | Business | Wholesale | Fiber Infrastructure Services        
Disaggregation of Revenue [Line Items]        
Total revenue 155 152 309 305
Adjustments for non-ASC 606 revenue (28) (30) (59) (60)
Total revenue from contracts with customers 127 122 250 245
Operating Segments | Business | Wholesale | Voice and Other        
Disaggregation of Revenue [Line Items]        
Total revenue 404 448 826 900
Adjustments for non-ASC 606 revenue (62) (65) (125) (133)
Total revenue from contracts with customers 342 383 701 767
Operating Segments | Mass Markets        
Disaggregation of Revenue [Line Items]        
Total revenue 1,402 1,475 2,836 2,966
Adjustments for non-ASC 606 revenue (198) (212) (398) (420)
Total revenue from contracts with customers 1,204 1,263 2,438 2,546
Operating Segments | Mass Markets | Voice and Other        
Disaggregation of Revenue [Line Items]        
Total revenue 518 587 1,059 1,194
Adjustments for non-ASC 606 revenue (19) (29) (40) (58)
Total revenue from contracts with customers 499 558 1,019 1,136
Operating Segments | Mass Markets | Consumer Broadband        
Disaggregation of Revenue [Line Items]        
Total revenue 723 726 1,454 1,448
Adjustments for non-ASC 606 revenue (53) (55) (105) (108)
Total revenue from contracts with customers 670 671 1,349 1,340
Operating Segments | Mass Markets | SBG Broadband        
Disaggregation of Revenue [Line Items]        
Total revenue 39 39 78 78
Adjustments for non-ASC 606 revenue (4) (5) (8) (8)
Total revenue from contracts with customers 35 34 70 70
Operating Segments | Mass Markets | CAF II        
Disaggregation of Revenue [Line Items]        
Total revenue 122 123 245 246
Adjustments for non-ASC 606 revenue (122) (123) (245) (246)
Total revenue from contracts with customers $ 0 $ 0 $ 0 $ 0
v3.21.2
Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Customer receivables $ 1,830 $ 1,889
Contract assets 85 108
Contract liabilities 876 950
Accounts receivable, gross 2,000 2,100
Allowance for doubtful accounts receivable $ 137 $ 174
v3.21.2
Revenue Recognition - Remaining Performance Obligation (Details)
$ in Billions
Jun. 30, 2021
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 6.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 72.00%
Remaining performance obligation, satisfaction period 2 years 6 months
v3.21.2
Revenue Recognition - Capitalized Contract Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Acquisition Costs        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance $ 279 $ 320 $ 289 $ 326
Costs incurred 45 36 89 85
Amortization (53) (56) (107) (111)
End of period balance 271 300 271 300
Fulfillment Costs        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance 216 220 216 221
Costs incurred 38 34 75 70
Amortization (37) (35) (74) (72)
End of period balance $ 217 $ 219 $ 217 $ 219
v3.21.2
Credit Losses on Financial Instruments (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]  
Beginning balance at January 1, 2020 $ 191
Provision for expected losses 53
Write-offs charged against the allowance (117)
Recoveries collected 25
Ending balance at June 30, 2021 152
Business  
Financing Receivable, Allowance for Credit Loss [Roll Forward]  
Beginning balance at January 1, 2020 109
Provision for expected losses 21
Write-offs charged against the allowance (35)
Recoveries collected 8
Ending balance at June 30, 2021 103
Mass Markets  
Financing Receivable, Allowance for Credit Loss [Roll Forward]  
Beginning balance at January 1, 2020 82
Provision for expected losses 32
Write-offs charged against the allowance (82)
Recoveries collected 17
Ending balance at June 30, 2021 49
Consumer Reclassed to Mass Markets  
Financing Receivable, Allowance for Credit Loss [Roll Forward]  
Beginning balance at January 1, 2020 70
Business Reclassed to Mass Markets  
Financing Receivable, Allowance for Credit Loss [Roll Forward]  
Beginning balance at January 1, 2020 $ 12
v3.21.2
Long-Term Debt and Credit Facilities - Schedule of Long Term Debt (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Long-term Debt and Credit Facilities    
Finance lease and other obligations $ 321 $ 295
Unamortized discounts, net (96) (78)
Unamortized debt issuance costs (235) (237)
Total long-term debt 31,169 31,837
Less current maturities (2,595) (2,427)
Long-term debt, excluding current maturities 28,574 29,410
Lumen Technologies, Inc. | Credit facility | Revolving Credit Facility    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 0 150
Lumen Technologies, Inc. | Credit facility | Revolving Credit Facility | LIBOR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Lumen Technologies, Inc. | Term loan | Term Loan A    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 1,079 $ 1,108
Long-term debt, weighted average interest rate 2.104% 2.147%
Lumen Technologies, Inc. | Term loan | Term Loan A | LIBOR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Lumen Technologies, Inc. | Term loan | Term Loan A-1    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 308 $ 316
Long-term debt, weighted average interest rate 2.104% 2.147%
Lumen Technologies, Inc. | Term loan | Term Loan A-1 | LIBOR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Lumen Technologies, Inc. | Term loan | Term Loan B    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 4,925 $ 4,950
Long-term debt, weighted average interest rate 2.354% 2.397%
Lumen Technologies, Inc. | Term loan | Term Loan B | LIBOR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.25%  
Lumen Technologies, Inc. | Senior notes | 4.000% Senior Secured Notes Due 2027    
Long-term Debt and Credit Facilities    
Stated interest rate 4.00%  
Long-term debt, gross $ 1,250 $ 1,250
Lumen Technologies, Inc. | Senior notes | Senior Notes Maturing 2022-2042    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 8,414 8,645
Lumen Technologies, Inc. | Senior notes | Senior Notes Maturing 2022-2042 | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate 4.50%  
Lumen Technologies, Inc. | Senior notes | Senior Notes Maturing 2022-2042 | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate 7.65%  
Level 3 Financing, Inc. | Term loan | Tranche B 2027 Term Loan    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 3,111 $ 3,111
Long-term debt, weighted average interest rate 1.854% 1.897%
Level 3 Financing, Inc. | Term loan | Tranche B 2027 Term Loan | LIBOR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 1.75%  
Level 3 Financing, Inc. | Senior notes | Senior Notes, Maturing 2027-2029    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 1,500 $ 1,500
Level 3 Financing, Inc. | Senior notes | Senior Notes, Maturing 2027-2029 | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate 3.40%  
Level 3 Financing, Inc. | Senior notes | Senior Notes, Maturing 2027-2029 | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate 3.875%  
Level 3 Financing, Inc. | Senior notes | Senior Notes Maturing 2025-2029    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 5,515 5,515
Level 3 Financing, Inc. | Senior notes | Senior Notes Maturing 2025-2029 | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate 3.625%  
Level 3 Financing, Inc. | Senior notes | Senior Notes Maturing 2025-2029 | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate 5.375%  
Embarq Corporation and subsidiary | Senior notes    
Long-term Debt and Credit Facilities    
Stated interest rate 7.995%  
Long-term debt, gross $ 1,437 1,437
Embarq Corporation and subsidiary | First mortgage bonds    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 138 138
Embarq Corporation and subsidiary | First mortgage bonds | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate 7.125%  
Embarq Corporation and subsidiary | First mortgage bonds | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate 8.375%  
Qwest Corporation | Term loan    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 215 $ 215
Long-term debt, weighted average interest rate 2.11% 2.15%
Qwest Corporation | Term loan | LIBOR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Qwest Corporation | Senior notes    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 2,935 $ 3,170
Qwest Corporation | Senior notes | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate 6.50%  
Qwest Corporation | Senior notes | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate 7.75%  
Qwest Capital Funding, Inc. | Senior notes    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 352 $ 352
Qwest Capital Funding, Inc. | Senior notes | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate 6.875%  
Qwest Capital Funding, Inc. | Senior notes | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate 7.75%  
v3.21.2
Long-Term Debt and Credit Facilities - Schedule of Maturities of Long Term Debt (Details)
$ in Millions
Jun. 30, 2021
USD ($)
Long-term Debt, Fiscal Year Maturity  
2021 (remaining six months) $ 1,127
2022 1,542
2023 966
2024 1,143
2025 2,908
2026 and thereafter 23,814
Total long-term debt $ 31,500
v3.21.2
Long-Term Debt and Credit Facilities - Additional Information (Details) - USD ($)
 6 Months Ended
Jun. 15, 2021
Jan. 13, 2021
Jun. 30, 2021
Long-term Debt and Credit Facilities      
Repayments of debt     $ 2,600,000,000
Gain on extinguishment of debt     8,000,000
Lumen Technologies, Inc. | Senior notes | 5.375% Senior Notes Due 2029      
Long-term Debt and Credit Facilities      
Face amount $ 1,000,000,000.0    
Stated interest rate 5.375%    
Lumen Technologies, Inc. | Credit facility | Revolving Credit Facility      
Long-term Debt and Credit Facilities      
Repayments of debt     150,000,000
Lumen Technologies, Inc. | Senior notes      
Long-term Debt and Credit Facilities      
Repayments of debt     1,200,000,000
Lumen Technologies, Inc. | Senior notes | 6.450% Senior Notes, Series S, Due 2021      
Long-term Debt and Credit Facilities      
Stated interest rate 6.45%    
Outstanding debt repaid $ 1,200,000,000    
Level 3 Financing, Inc. | Senior notes      
Long-term Debt and Credit Facilities      
Outstanding debt repaid   $ 900,000,000  
Level 3 Financing, Inc. | Senior notes | 3.750% Sustainability-Linked Senior Notes 2029      
Long-term Debt and Credit Facilities      
Face amount   $ 900,000,000  
Stated interest rate   3.75%  
Level 3 Financing, Inc. | Senior notes      
Long-term Debt and Credit Facilities      
Repayments of debt     900,000,000
Qwest Corporation | Senior notes      
Long-term Debt and Credit Facilities      
Repayments of debt     $ 235,000,000
v3.21.2
Severance (Details) - Severance
$ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
Restructuring reserve  
Balance at the beginning of the period $ 103
Accrued to expense 0
Payments, net (51)
Balance at the end of the period $ 52
v3.21.2
Employee Benefits (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Combined Pension Plan        
Components of net periodic (benefit) expense        
Service cost $ 15 $ 13 $ 28 $ 29
Interest cost 49 80 99 162
Expected return on plan assets (138) (149) (276) (298)
Recognition of prior service credit (3) (1) (5) (4)
Recognition of actuarial loss 49 52 98 102
Net periodic pension benefit (income) expense (28) (5) (56) (9)
Post-Retirement Benefit Plans        
Components of net periodic (benefit) expense        
Service cost 3 3 7 7
Interest cost 11 20 23 40
Recognition of prior service credit 4 4 8 8
Recognition of actuarial loss 1 0 2 0
Net periodic pension benefit (income) expense $ 19 $ 27 $ 40 $ 55
v3.21.2
Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
(Loss) Income (Numerator):        
Net income $ 506 $ 377 $ 981 $ 691
Net income applicable to common stock for computing basic earnings per common share 506 377 981 691
Net income as adjusted for purposes of computing diluted earnings per common share $ 506 $ 377 $ 981 $ 691
Weighted-average number of shares:        
Outstanding during period (in shares) 1,105,403 1,097,586 1,102,877 1,095,278
Non-vested restricted stock (in shares) (18,950) (18,111) (18,413) (17,523)
Weighted average shares outstanding for computing basic earnings per common share (in shares) 1,086,453 1,079,475 1,084,464 1,077,755
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) 6,939 3,082 8,020 4,453
Number of shares as adjusted for purposes of computing diluted earnings (loss) per common share (in shares) 1,093,402 1,082,567 1,092,494 1,082,218
Basic earnings per common share (in dollars per share) $ 0.47 $ 0.35 $ 0.90 $ 0.64
Diluted earnings per common share (in dollars per share) $ 0.46 $ 0.35 $ 0.90 $ 0.64
Number of shares of common stock excluded from the computation of diluted earnings per share (less than) (in shares) 2,200 8,700 1,200 5,700
v3.21.2
Fair Value of Financial Instruments (Details) - Fair Value Measurements Determined on a Nonrecurring Basis - Fair Value Inputs, Level 2 - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Carrying Amount    
Fair value disclosure    
Long-term debt, excluding finance lease and other obligations $ 30,848 $ 31,542
Interest rate swap contracts (see Note 10) 67 107
Fair Value    
Fair value disclosure    
Long-term debt, excluding finance lease and other obligations 32,085 33,217
Interest rate swap contracts (see Note 10) $ 67 $ 107
v3.21.2
Derivative Financial Instruments - Additional Information (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
Interest Rate Swap  
Derivative [Line Items]  
Reclassification in next twelve months $ 67
v3.21.2
Derivative Financial Instruments - Fair Value of Derivatives (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value $ 67 $ 107
v3.21.2
Derivative Financial Instruments - Losses Recognized in OCI (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Designated as Hedging Instrument | Interest Rate Swap        
Derivative Instruments, Gain (Loss) [Line Items]        
Loss recognized in other comprehensive income $ 0 $ 10 $ 0 $ 116
v3.21.2
Derivative Financial Instruments - Reclassification from AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Realized losses reclassified from AOCI $ 16 $ 11 $ 31 $ 16
Interest Rate Swap | Designated as Hedging Instrument        
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Realized losses reclassified from AOCI $ 21 $ 16 $ 41 $ 21
v3.21.2
Segment Information - Additional Information (Details)
 6 Months Ended
Jun. 30, 2021
segment
sales_channel
Segment Reporting Information [Line Items]  
Number of operating segments 2
Number of reportable segments 2
Business  
Segment Reporting Information [Line Items]  
Number of sales channels | sales_channel 4
v3.21.2
Segment Information - Segment Results and Operating Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Operating revenues by products and services        
Revenues $ 4,924 $ 5,192 $ 9,953 $ 10,420
Cost of services and products 2,115 2,232 4,251 4,467
Selling, general and administrative 762 895 1,518 1,748
Less: share-based compensation (42) (20) (62) (89)
Total expense 2,835 3,107 5,707 6,126
Total adjusted EBITDA 2,089 2,085 4,246 4,294
Operating Segments        
Operating revenues by products and services        
Revenues 4,924 5,192 9,953 10,420
Cost of services and products 901 967 1,825 1,923
Selling, general and administrative 448 478 887 960
Less: share-based compensation 0 0 0 0
Total expense 1,349 1,445 2,712 2,883
Total adjusted EBITDA 3,575 3,747 7,241 7,537
Operating Segments | Business        
Operating revenues by products and services        
Revenues 3,522 3,717 7,117 7,454
Cost of services and products 862 919 1,743 1,826
Selling, general and administrative 298 334 604 676
Less: share-based compensation 0 0 0 0
Total expense 1,160 1,253 2,347 2,502
Total adjusted EBITDA 2,362 2,464 4,770 4,952
Operating Segments | Mass Markets        
Operating revenues by products and services        
Revenues 1,402 1,475 2,836 2,966
Cost of services and products 39 48 82 97
Selling, general and administrative 150 144 283 284
Less: share-based compensation 0 0 0 0
Total expense 189 192 365 381
Total adjusted EBITDA 1,213 1,283 2,471 2,585
Operations and Other        
Operating revenues by products and services        
Revenues 0 0 0 0
Cost of services and products 1,214 1,265 2,426 2,544
Selling, general and administrative 314 417 631 788
Less: share-based compensation (42) (20) (62) (89)
Total expense 1,486 1,662 2,995 3,243
Total adjusted EBITDA $ (1,486) $ (1,662) $ (2,995) $ (3,243)
v3.21.2
Segment Information - Reconciliation (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Segment Reporting Information [Line Items]        
Total adjusted EBITDA $ 2,089 $ 2,085 $ 4,246 $ 4,294
Depreciation and amortization (1,041) (1,162) (2,191) (2,322)
OPERATING INCOME 1,006 903 1,993 1,883
Total other expense, net (332) (390) (687) (937)
INCOME BEFORE INCOME TAXES 674 513 1,306 946
Income tax expense 168 136 325 255
NET INCOME 506 377 981 691
Operating Segments        
Segment Reporting Information [Line Items]        
Total adjusted EBITDA 3,575 3,747 7,241 7,537
Operations and Other        
Segment Reporting Information [Line Items]        
Total adjusted EBITDA (1,486) (1,662) (2,995) (3,243)
Depreciation and amortization (1,041) (1,162) (2,191) (2,322)
Other operating expenses (1,486) (1,662) (2,995) (3,243)
Stock-based compensation (42) (20) (62) (89)
OPERATING INCOME 1,006 903 1,993 1,883
Total other expense, net $ (332) $ (390) $ (687) $ (937)
v3.21.2
Commitments and Contingencies and Other Items (Details)
plaintiff in Thousands, $ in Thousands
 1 Months Ended 6 Months Ended
Jun. 30, 2021
USD ($)
lawsuit
Feb. 28, 2017
USD ($)
lawsuit
Jun. 30, 2021
USD ($)
contract
plaintiff
Employee
Dec. 31, 2005
USD ($)
subsidiary
Loss Contingencies        
Estimate of possible loss $ 115,000   $ 115,000  
Patents allegedly infringed | lawsuit   1    
Number of members (more than) | plaintiff     12  
Unfavorable Regulatory Action        
Loss Contingencies        
Estimate of possible loss $ 300   $ 300  
Level 3 Parent, LLC        
Loss Contingencies        
Damages sought, value     $ 50,000  
U.S. District Court for the District of Minnesota        
Loss Contingencies        
Number of members (more than) | plaintiff     11  
Missouri Municipalities | Judicial ruling        
Loss Contingencies        
Patents allegedly infringed | lawsuit   1    
Litigation settlement amount   $ 4,000    
Columbia and Joplin Municipalities | Judicial ruling        
Loss Contingencies        
Patents allegedly infringed | lawsuit 1      
Litigation settlement amount $ 55,000      
Peruvian Tax Litigation | Pending litigation        
Loss Contingencies        
Number of subsidiaries issues with tax assessment | subsidiary       1
Loss contingency, asserted claim       $ 26,000
Brazilian Tax Claims | Pending litigation | Maximum        
Loss Contingencies        
Loss contingency, range of possible loss, portion not accrued $ 53,000   $ 53,000  
United States of America ex rel., Stephen Bishop v. Level 3 Communications, Inc. et al.        
Loss Contingencies        
Number of former employees names in lawsuit | Employee     2  
Number of government contracts in question | contract     2  
v3.21.2
Other Financial Information (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Prepaid Expenses and Other Current Assets [Abstract]    
Prepaid expenses $ 369 $ 290
Income tax receivable 12 7
Materials, supplies and inventory 114 105
Contract assets 53 66
Other 72 53
Total other current assets 906 808
Acquisition Costs    
Prepaid Expenses and Other Current Assets [Abstract]    
Contract costs 168 173
Fulfillment Costs    
Prepaid Expenses and Other Current Assets [Abstract]    
Contract costs $ 118 $ 114
v3.21.2
Accumulated Other Comprehensive Loss - AOCI Activity (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     $ 11,162  
Other comprehensive loss before reclassifications     (6) $ (318)
Amounts reclassified from accumulated other comprehensive loss     109 96
Other comprehensive income (loss) $ 135 $ 53 103 (222)
Balance at end of period 11,706 13,462 11,706 13,462
Defined Benefit Plan | Pension Plans        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (2,197) (2,229)
Other comprehensive loss before reclassifications     0 0
Amounts reclassified from accumulated other comprehensive loss     71 74
Other comprehensive income (loss)     71 74
Balance at end of period (2,126) (2,155) (2,126) (2,155)
Defined Benefit Plan | Post-Retirement Benefit Plans        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (272) (184)
Other comprehensive loss before reclassifications     0 0
Amounts reclassified from accumulated other comprehensive loss     7 6
Other comprehensive income (loss)     7 6
Balance at end of period (265) (178) (265) (178)
Foreign Currency Translation Adjustment and Other        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (265) (228)
Other comprehensive loss before reclassifications     (6) (230)
Amounts reclassified from accumulated other comprehensive loss     0 0
Other comprehensive income (loss)     (6) (230)
Balance at end of period (271) (458) (271) (458)
Interest Rate Swap        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (79) (39)
Other comprehensive loss before reclassifications     0 (88)
Amounts reclassified from accumulated other comprehensive loss     31 16
Other comprehensive income (loss)     31 (72)
Balance at end of period (48) (111) (48) (111)
Accumulated Other Comprehensive Loss        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period (2,845) (2,955) (2,813) (2,680)
Other comprehensive income (loss) 135 53 103 (222)
Balance at end of period $ (2,710) $ (2,902) $ (2,710) $ (2,902)
v3.21.2
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Reclassifications out of accumulated other comprehensive income loss by component        
Interest expense $ 384 $ 414 $ 773 $ 863
Other income (expense), net 52 24 86 (74)
Total before tax 674 513 1,306 946
Income tax expense (168) (136) (325) (255)
Net of tax 506 377 981 691
Decrease (Increase) in Net Income | Interest rate swaps        
Reclassifications out of accumulated other comprehensive income loss by component        
Interest expense 21 16 41 21
Income tax expense (5) (5) (10) (5)
Net of tax 16 11 31 16
Decrease (Increase) in Net Income | Net actuarial loss        
Reclassifications out of accumulated other comprehensive income loss by component        
Other income (expense), net 50 52 100 102
Decrease (Increase) in Net Income | Prior service cost        
Reclassifications out of accumulated other comprehensive income loss by component        
Other income (expense), net 1 3 3 4
Decrease (Increase) in Net Income | Defined benefit plan        
Reclassifications out of accumulated other comprehensive income loss by component        
Total before tax 51 55 103 106
Income tax expense (12) (14) (25) (26)
Net of tax $ 39 $ 41 $ 78 $ 80
v3.21.2
Labor Union Contracts (Details) - Unionized employees concentration risk
 6 Months Ended
Jun. 30, 2021
Total number of employees  
Concentration risk  
Concentration risk, percent 22.00%
Workforce subject to collective bargaining arrangements, expired  
Concentration risk  
Concentration risk, percent 5.00%
Workforce subject to collective bargaining arrangements expiring within one year  
Concentration risk  
Concentration risk, percent 8.00%
v3.21.2
Subsequent Events (Details) - Subsequent Event
Aug. 04, 2021
shares
Aug. 03, 2021
USD ($)
state
Jul. 25, 2021
USD ($)
Subsequent Event [Line Items]      
Repurchase program, period   24 months  
Repurchase program, authorized amount   $ 1,000,000,000.0  
Number of shares repurchased | shares 0    
Latin American Business | Level 3 Parent, LLC | Discontinued Operations, Disposed of by Sale      
Subsequent Event [Line Items]      
Cash consideration from disposal of business     $ 2,735,000,000
Local Exchange Business in Midwestern and Southern States | Discontinued Operations, Disposed of by Sale      
Subsequent Event [Line Items]      
Cash consideration from disposal of business   $ 7,500,000,000  
Number of states in which the business is conducted | state   20  
Assumed indebtedness from disposal of business   $ 1,400,000,000  
Purchaser's transaction expenses   $ 245,000,000  
v3.21.2
Label Element Value
Small and Medium Business [Member]  
Goodwill us-gaap_Goodwill $ (2,808,000,000)
Enterprise [Member]  
Goodwill us-gaap_Goodwill (4,738,000,000)
Mass Market Segment [Member]  
Goodwill us-gaap_Goodwill 6,697,000,000
Business Segment [Member]  
Goodwill us-gaap_Goodwill 12,173,000,000
Wholesale [Member]  
Goodwill us-gaap_Goodwill (3,114,000,000)
Consumer [Member]  
Goodwill us-gaap_Goodwill (5,655,000,000)
International and Global Accounts [Member]  
Goodwill us-gaap_Goodwill $ (2,555,000,000)
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]  
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-13 [Member]