LUMEN TECHNOLOGIES, INC., 10-Q filed on 5/4/2022
Quarterly Report
v3.22.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2022
Apr. 29, 2022
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
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   1,033,055,343
Entity Central Index Key 0000018926  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Common Stock    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $1.00 per share  
Trading Symbol LUMN  
Security Exchange Name NYSE  
Preferred Stock    
Document Information [Line Items]    
Title of 12(b) Security Preferred Stock Purchase Rights  
Security Exchange Name NYSE  
Preferred Stock - No Trading Symbol true  
v3.22.1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
OPERATING REVENUE $ 4,676 $ 5,029
OPERATING EXPENSES    
Cost of services and products (exclusive of depreciation and amortization) 1,985 2,136
Selling, general and administrative 800 756
Depreciation and amortization 808 1,150
Total operating expenses 3,593 4,042
OPERATING INCOME 1,083 987
OTHER (EXPENSE) INCOME    
Interest expense (352) (389)
Other income, net 70 34
Total other expense, net (282) (355)
INCOME BEFORE INCOME TAXES 801 632
Income tax expense 202 157
NET INCOME $ 599 $ 475
BASIC AND DILUTED EARNINGS PER COMMON SHARE    
BASIC (in dollars per share) $ 0.59 $ 0.44
DILUTED (in dollars per share) $ 0.59 $ 0.44
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING    
BASIC (in shares) 1,008,430 1,082,474
DILUTED (in shares) 1,015,215 1,091,586
v3.22.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
NET INCOME $ 599 $ 475
Items related to employee benefit plans:    
Change in net actuarial loss, net of $(9) and $(12) tax 28 38
Change in net prior service cost, net of $— and $(1) tax (1) 1
Reclassification of realized loss on interest rate swaps to net income, net of $(5) and $(5) tax 17 15
Foreign currency translation adjustment, net of $10 and $7 tax 67 (86)
Other comprehensive income (loss) 111 (32)
COMPREHENSIVE INCOME $ 710 $ 443
v3.22.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Change in net actuarial loss, tax $ (9) $ (12)
Change in net prior service cost, tax 0 (1)
Reclassification of realized loss on interest rate swaps to net income, tax (5) (5)
Foreign currency translation adjustment and other, tax $ 10 $ 7
v3.22.1
CONSOLIDATED BALANCE SHEETS (UNAJDITED) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
CURRENT ASSETS    
Cash and cash equivalents $ 366 $ 354
Accounts receivable, less allowance of $111 and $114 1,419 1,544
Assets held for sale 9,025 8,809
Other 962 829
Total current assets 11,772 11,536
Property, plant and equipment, net of accumulated depreciation of XX and $32,214 20,829 20,895
GOODWILL AND OTHER ASSETS    
Goodwill 15,976 15,986
Other intangible assets, net 6,785 6,970
Other, net 2,675 2,606
Total goodwill and other assets 25,436 25,562
TOTAL ASSETS 58,037 57,993
CURRENT LIABILITIES    
Current maturities of long-term debt 156 1,554
Accounts payable 902 758
Accrued expenses and other liabilities    
Salaries and benefits 687 860
Income and other taxes 244 228
Current operating lease liabilities 383 385
Interest 207 278
Other 184 232
Liabilities held for sale 2,250 2,257
Current portion of deferred revenue 642 617
Total current liabilities 5,655 7,169
LONG-TERM DEBT 28,397 27,428
DEFERRED CREDITS AND OTHER LIABILITIES    
Deferred income taxes, net 4,222 4,049
Benefit plan obligations, net 3,634 3,710
Other 3,847 3,797
Total deferred credits and other liabilities 11,703 11,556
COMMITMENTS AND CONTINGENCIES (Note 13)
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 1,032,909 and 1,023,512 shares 1,033 1,024
Additional paid-in capital 18,695 18,972
Accumulated other comprehensive loss (2,047) (2,158)
Accumulated deficit (5,399) (5,998)
Total stockholders' equity 12,282 11,840
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 58,037 $ 57,993
v3.22.1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
shares in Thousands, $ in Millions
Mar. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Accounts receivable, allowance $ 111 $ 114
PP&E, accumulated depreciation $ 19,635 $ 19,271
Preferred stock-non-redeemable, par value (in dollars per share) $ 25.00 $ 25.00
Preferred stock-non-redeemable, shares authorized (in shares) 2,000 2,000
Preferred stock-non-redeemable, shares issued (in shares) 7 7
Preferred stock-non-redeemable, shares outstanding (in shares) 7 7
Common stock, par value (in dollars per share) $ 1.00 $ 1.00
Common stock, shares authorized (in shares) 2,200,000 2,200,000
Common stock, shares issued (in shares) 1,032,909 1,023,512
Common stock, shares outstanding (in shares) 1,032,909 1,023,512
v3.22.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
OPERATING ACTIVITIES    
Net income $ 599 $ 475
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 808 1,150
Deferred income taxes 179 131
Provision for uncollectible accounts 25 27
Net gain on early retirement of debt 0 (8)
Stock-based compensation 23 20
Changes in current assets and liabilities:    
Accounts receivable 131 45
Accounts payable (38) (93)
Accrued income and other taxes 34 31
Other current assets and liabilities, net (376) (272)
Retirement benefits (38) (71)
Changes in other noncurrent assets and liabilities, net (27) 66
Other, net 55 24
Net cash provided by operating activities 1,375 1,525
INVESTING ACTIVITIES    
Capital expenditures (577) (716)
Proceeds from sale of property, plant and equipment and other assets 6 35
Other, net 2 6
Net cash used in investing activities (569) (675)
FINANCING ACTIVITIES    
Net proceeds from issuance of long-term debt 0 891
Payments of long-term debt (1,474) (1,176)
Net proceeds from (payments on) revolving line of credit 1,000 (150)
Dividends paid (271) (294)
Other, net (31) (45)
Net cash used in financing activities (776) (774)
Net increase in cash, cash equivalents and restricted cash 30 76
Cash, cash equivalents and restricted cash at beginning of period 409 427
Cash, cash equivalents and restricted cash at end of period 439 503
Supplemental cash flow information:    
Income taxes paid, net (10) (21)
Interest paid (net of capitalized interest of $16 and $13) (386) (387)
Cash, cash equivalents and restricted cash:    
Cash and cash equivalents 366 486
Cash and cash equivalents included in Assets held for sale 59 0
Restricted cash included in Other current assets 2 2
Restricted cash included in Other, net noncurrent assets 12 15
Total $ 439 $ 503
v3.22.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Cash Flows [Abstract]    
Capitalized interest $ 16 $ 13
v3.22.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)
$ in Millions
Total
COMMON STOCK
ADDITIONAL PAID-IN CAPITAL
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED DEFICIT
Balance at beginning of period at Dec. 31, 2020   $ 1,097 $ 20,909 $ (2,813) $ (8,031)
Increase (Decrease) in Stockholders' Equity          
Issuance of common stock through incentive and benefit plans   9      
Shares withheld to satisfy tax withholdings     (39)    
Stock-based compensation and other, net     20    
Dividends declared     (292)    
Other comprehensive income (loss) $ (32)     (32)  
Net income 475       475
Balance at end of period at Mar. 31, 2021 $ 11,303 1,106 20,598 (2,845) (7,556)
Increase (Decrease) in Stockholders' Equity          
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.25        
Balance at beginning of period at Dec. 31, 2021 $ 11,840 1,024 18,972 (2,158) (5,998)
Increase (Decrease) in Stockholders' Equity          
Issuance of common stock through incentive and benefit plans   9      
Shares withheld to satisfy tax withholdings     (28)    
Stock-based compensation and other, net     23    
Dividends declared     (272)    
Other comprehensive income (loss) 111     111  
Net income 599       599
Balance at end of period at Mar. 31, 2022 $ 12,282 $ 1,033 $ 18,695 $ (2,047) $ (5,399)
Increase (Decrease) in Stockholders' Equity          
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.25        
v3.22.1
Background
 3 Months Ended
Mar. 31, 2022
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 products and services to our business and mass markets customers. Our specific products and services are detailed in Note 4—Revenue Recognition.

Basis of Presentation

Our consolidated balance sheet as of December 31, 2021, 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 note 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 three 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, 2021.

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, 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 recategorization of our Mass Markets revenue by product category in our segment reporting. See Note 12—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 March 31, 2022 or December 31, 2021.
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, 2021.

Recently Adopted Accounting Pronouncements

Government Assistance

On January 1, 2022, we adopted Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2020-10”). This ASU increases transparency in financial reporting by requiring business entities to disclose information about certain types of government assistance they receive. The ASU only impacts annual financial statement note disclosures. Therefore, the adoption of ASU 2021-10 did not have a material impact to our consolidated financial statements.

Leases

On January 1, 2022, we adopted ASU 2021-05, “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” (“ASU 2021-05”). This ASU (i) amends the lease classification requirements for lessors to align them with practice under ASC Topic 840, (ii) provides criteria for lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease; and (iii) when a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The adoption of ASU 2021-05 did not have a material impact to our consolidated financial statements.

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 guidance 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)” (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 March 31, 2022, we determined there was no application or discontinuation of the equity method during the reporting periods covered by this report. 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, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“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.

Recently Issued Accounting Pronouncements

In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures” (“ASU 2022-02”). These amendments eliminate the TDR recognition and measurement guidance and enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. ASU 2020-02 will become effective for us in the first quarter of fiscal 2023 and early adoption is permitted. As of March 31, 2022, we do not expect ASU 2022-02 to have an impact to our consolidated financial statements.
In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method” (ASU 2022-01). The ASU expands the current single-layer method to allow multiple hedged layers of a single closed portfolio under the method. ASU 2020-01 will become effective for us in the first quarter of fiscal 2023 and early adoption is permitted. As of March 31, 2022, we do not expect ASU 2022-01 to have an impact to our consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 will become effective for us in the first quarter of fiscal 2023 and early adoption is permitted. As of March 31, 2022, we do not expect ASU 2021-08 to have an impact to our consolidated financial statements.

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 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 March 31, 2022, we do not expect ASU 2021-01 to have a material impact to our consolidated financial statements.
v3.22.1
Planned Divestiture of the Latin American and ILEC Businesses
 3 Months Ended
Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Planned Divestiture of the Latin American and ILEC Businesses Planned Divestiture of the Latin American and ILEC Businesses
On 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 $2.7 billion cash, subject to certain working capital, other purchase price adjustments and related transaction expenses (estimated to be approximately $50 million). Level 3 Parent, LLC anticipates closing the transaction during the second 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.

On August 3, 2021, we and certain of our affiliates entered into a definitive agreement to divest our incumbent local exchange ("ILEC") business conducted within 20 Midwestern and Southern states to an affiliate of funds advised by Apollo Global Management, Inc. In exchange, we would receive $7.5 billion, subject to offsets for (i) assumed indebtedness (expected to be approximately $1.4 billion) and (ii) certain purchaser’s transaction expenses along with working capital, tax, other customary purchase price adjustments and related transaction expenses (estimated to be approximately $1.7 billion). We anticipate closing the transaction during the second half of 2022 upon receipt of all regulatory approvals and the satisfaction of other customary closing conditions.

The actual amount of our net after-tax proceeds from these divestitures could vary substantially from the amounts we currently estimate, particularly if we experience delays in completing the transactions or if any of our other assumptions prove to be incorrect.
We do not believe these divestiture transactions represent a strategic shift for Lumen. Therefore, neither divested business meets the criteria to be classified as a discontinued operation. As a result, we will continue to report our operating results for the Latin American and ILEC businesses (the "disposal groups") in our consolidated operating results until the transactions are closed. The pre-tax net income of the disposal groups is estimated to be as follows in the table below:

 Three Months Ended March 31,
 20222021
(Dollars in millions)
Latin American business pre-tax net income$83 28 
ILEC business pre-tax net income255 149 
Total disposal groups pre-tax net income$338 177 

As of March 31, 2022 in the accompanying consolidated balance sheet, the assets and liabilities of our Latin American and ILEC businesses are classified as held for sale and are measured at the lower of (i) the carrying value of the disposal groups and (ii) the fair value of the disposal groups, less costs to sell. Effective with the designation of both disposal groups as held for sale on July 25, 2021 and August 3, 2021, respectively, we suspended recording depreciation of property, plant and equipment and amortization of finite-lived intangible assets and right-of-use assets while these assets are classified as held for sale. We estimate that we would have recorded an additional $170 million of depreciation, intangible amortization, and amortization of right-of-use assets for the three months ended March 31, 2022 if the Latin American and ILEC businesses did not meet the held for sale criteria, of which $49 million and $121 million relates to the Latin American business and ILEC business, respectively.

As a result of our evaluation of the recoverability of the carrying value of the assets and liabilities held for sale relative to the agreed upon sales price, adjusted for costs to sell, we did not record any estimated loss on disposal during the three months ended March 31, 2022. The recoverability of each disposal group will be re-evaluated each reporting period until the closing of each transaction.
The principal components of the held for sale assets and liabilities are as follows:

March 31, 2022December 31, 2021
Latin American BusinessILEC BusinessTotalLatin American BusinessILEC BusinessTotal
(Dollars in millions)
Assets held for sale
Cash and cash equivalents$58 1 59 39 1 40 
Accounts receivable, less allowance of $3, $18, $21, $3, $21 and $24
93 191 284 83 227 310 
Other current assets83 40 123 81 45 126 
Property, plant and equipment, net accumulated depreciation of $456, $8,379, $8,835, $434, $8,303 and $8,737
1,704 3,565 5,269 1,591 3,491 5,082 
Goodwill(1)
259 2,615 2,874 239 2,615 2,854 
Other intangible assets, net138 158 296 126 158 284 
Other non-current assets83 37 120 75 38 113 
Total assets held for sale$2,418 6,607 9,025 2,234 6,575 8,809 
Liabilities held for sale
Accounts payable$90 50 140 101 64 165 
Salaries and benefits25 25 50 23 25 48 
Income and other taxes34 30 64 27 24 51 
Interest— 38 38 — 10 10 
Current portion of deferred revenue26 82 108 26 90 116 
Other current liabilities7 23 30 7 35 42 
Long-term debt, net of discounts(2)
— 1,387 1,387 — 1,377 1,377 
Deferred income taxes, net148 — 148 129 — 129 
Pension and other post-retirement benefits(3)
2 56 58 2 56 58 
Other non-current liabilities132 95 227 120 141 261 
Total liabilities held for sale$464 1,786 2,250 435 1,822 2,257 
______________________________________________________________________ 
(1)The assignment of goodwill was based on the relative fair values of the applicable reporting units prior to being reclassified as held for sale.
(2)Long-term debt, net of discounts, as of March 31, 2022 and December 31, 2021 includes (i) $1.4 billion for both periods of 7.995% Embarq senior notes maturing in 2036, (ii) $116 million and $117 million of related unamortized discounts, respectively, and (iii) $66 million and $57 million of long-term finance lease obligations, respectively.
(3)Excludes pension obligation of approximately $2.5 billion for the ILEC business as of March 31, 2022 and December 31, 2021, which will be transferred to the purchaser of the ILEC business upon closing. As of January 1, 2022, a new pension plan (the "Lumen Pension Plan") was spun off in anticipation of this transfer. Along with the transfer of the $2.5 billion pension benefit obligation, $2.2 billion of assets were allocated to the new plan. The remaining portion of the obligation is expected to be separately funded with cash paid by Lumen at the time of closing. See Note 8—Employee Benefits for additional information.
v3.22.1
Goodwill, Customer Relationships and Other Intangible Assets
 3 Months Ended
Mar. 31, 2022
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:

March 31, 2022December 31, 2021
(Dollars in millions)
Goodwill$15,976 15,986 
Indefinite-lived intangible assets$9 9 
Other intangible assets subject to amortization: 
Customer relationships, less accumulated amortization of $3,268 and $11,740(1)
5,180 5,365 
Capitalized software, less accumulated amortization of $3,656 and $3,624
1,469 1,459 
Trade names, patents and other, less accumulated amortization of $162 and $160
127 137 
Total other intangible assets, net$6,785 6,970 
______________________________________________________________________
(1)    Certain customer relationships with a gross carrying value of $8.7 billion became fully amortized during 2021 and were retired during the first quarter of 2022.

As of March 31, 2022, the gross carrying amount of goodwill, customer relationships, indefinite-lived and other intangible assets was $29.8 billion.

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 a non-cash 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 is based on the 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.
The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2021 through March 31, 2022:

 BusinessMass MarketsTotal
 (Dollars in millions)
As of December 31, 2021(1)(2)
$11,235 4,751 15,986 
Effect of foreign currency exchange rate change and other(10)— (10)
As of March 31, 2022(1)(2)
$11,225 4,751 15,976 
______________________________________________________________________
(1)Goodwill at March 31, 2022 and December 31, 2021 is net of accumulated impairment losses of $7.7 billion.
(2)As of March 31, 2022 and December 31, 2021, these amounts exclude goodwill classified as held for sale of $2.9 billion. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.

We report our results within two segments: Business and Mass Markets. See Note 12—Segment Information for more information on these segments and the underlying sales channels. We have five reporting units for goodwill impairment testing, which are (i) Mass Markets, (ii) North America Business (iii) Europe, Middle East and Africa region, (iv) Asia Pacific region and (v) Latin America region.

Total amortization expense for finite-lived intangible assets for the three months ended March 31, 2022 and 2021 totaled $274 million and $425 million, respectively.

We estimate that total amortization expense for finite-lived intangible assets for the years ending December 31, 2022 through 2026 will be as provided in the table below. As a result of reclassifying our Latin American and ILEC businesses as being held for sale on our March 31, 2022 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of the businesses to be divested. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.

 (Dollars in millions)
2022 (remaining nine months)$770 
2023948 
2024878 
2025811 
2026735 
v3.22.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Product and Service Categories

We categorize our products and services revenue among the following 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 2022, we have categorized our products and services revenue among the following categories for the Mass Markets segment:

•Fiber Broadband, which includes high speed fiber-based broadband services to residential and small business customers;

•Other Broadband, which primarily includes lower speed copper-based broadband services to residential and small business customers; and

•Voice and Other, which includes revenues from (i) providing local and long-distance services, professional services, and other ancillary services, and (ii) federal broadband and state support payments.

Reconciliation of Total Revenue to Revenue from Contracts with Customers

The following table provides 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 March 31, 2022Three Months Ended March 31, 2021
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$183 (73)110 183 (69)114 
IP and Data Services423 — 423 429 — 429 
Fiber Infrastructure219 (34)185 217 (30)187 
Voice and Other174 — 174 191 — 191 
Total IGAM Revenue999 (107)892 1,020 (99)921 
Large Enterprise
Compute and Application Services163 (14)149 169 (15)154 
IP and Data Services388 — 388 402 — 402 
Fiber Infrastructure113 (13)100 130 (15)115 
Voice and Other213 — 213 252 — 252 
Total Large Enterprise Revenue877 (27)850 953 (30)923 
Mid-Market Enterprise
Compute and Application Services33 (7)26 32 (8)24 
IP and Data Services415 (1)414 442 (1)441 
Fiber Infrastructure49 (2)47 56 (2)54 
Voice and Other139 — 139 163 — 163 
Total Mid-Market Enterprise Revenue636 (10)626 693 (11)682 
Wholesale
Compute and Application Services48 (40)8 47 (40)7 
IP and Data Services296 — 296 305 — 305 
Fiber Infrastructure154 (27)127 154 (31)123 
Voice and Other391 (64)327 423 (63)360 
Total Wholesale Revenue889 (131)758 929 (134)795 
Business Segment by Product Category
Compute and Application Services427 (134)293 431 (132)299 
IP and Data Services1,522 (1)1,521 1,578 (1)1,577 
Fiber Infrastructure535 (76)459 557 (78)479 
Voice and Other917 (64)853 1,029 (63)966 
Total Business Segment Revenue3,401 (275)3,126 3,595 (274)3,321 
Mass Markets Segment by Product Category
Fiber Broadband145 (5)140 122 — 122 
Other Broadband610 (56)554 648 (55)593 
Voice and Other520 (79)441 664 (145)519 
Total Mass Markets Revenue1,275 (140)1,135 1,434 (200)1,234 
Total Revenue$4,676 (415)4,261 5,029 (474)4,555 
_____________________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.
Operating Lease Income

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 March 31, 2022 and 2021, our gross rental income was $337 million and $332 million, respectively, which represents approximately 7% of our operating revenue for both the three months ended March 31, 2022 and 2021.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts reclassified as held for sale, as of March 31, 2022 and December 31, 2021:

March 31, 2022December 31, 2021
 (Dollars in millions)
Customer receivables(1)
$1,365 1,493 
Contract assets(2)
70 73 
Contract liabilities(3)
671 680 
______________________________________________________________________
(1)Reflects gross customer receivables of $1.5 billion and $1.6 billion, net of allowance for credit losses of $99 million and $102 million, at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, these amounts exclude customer receivables, net reclassified as held for sale of $260 million and $288 million, respectively.
(2)As of March 31, 2022 and December 31, 2021, these amounts exclude contract assets reclassified as held for sale of $9 million as of both periods.
(3)As of March 31, 2022 and December 31, 2021, these amounts exclude contract liabilities reclassified as held for sale of $154 million and $161 million, 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 months ended March 31, 2022, we recognized $395 million of revenue that was included in contract liabilities of $841 million as of January 1, 2022, including contract liabilities that were classified as held for sale. During the three months ended March 31, 2021, we recognized $425 million of revenue that was included in contract liabilities of $950 million as of January 1, 2021.

Performance Obligations

As of March 31, 2022, 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 $5.8 billion. We expect to recognize approximately 76% of this revenue through 2024, 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), (ii) contracts that are classified as leasing arrangements or government assistance that are not subject to ASC 606 and (iii) the value of unsatisfied performance obligations for contracts which relate to our planned divestitures.
Contract Costs

The following table provides changes in our contract acquisition costs and fulfillment costs:

Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Acquisition Costs(1)
Fulfillment Costs(2)
Acquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance$222 186 289 216 
Costs incurred43 40 44 37 
Amortization(52)(39)(54)(37)
Change in contract costs held for sale2 — — — 
End of period balance$215 187 279 216 
______________________________________________________________________
(1)The beginning and ending balance for the three months ended March 31, 2022 exclude acquisition costs reclassified as held for sale of $34 million and $32 million, respectively.
(2)Both the beginning and ending balance for the three months ended March 31, 2022 exclude fulfillment costs reclassified as held for sale of $32 million.

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 contract life of approximately 32 months for mass markets customers and 30 months for 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 twelve 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.
v3.22.1
Credit Losses on Financial Instruments
 3 Months Ended
Mar. 31, 2022
Credit Loss [Abstract]  
Credit Losses on Financial Instruments Credit Losses on Financial Instruments
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 periodically monitor certain risk characteristics within our aggregated financial assets and revise their composition accordingly, to the extent internal and external risk factors change. 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 review 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.

If there is an unexpected deterioration of a customer's financial condition or an unexpected change in economic conditions (including changes caused by COVID-19 or other macroeconomic events), we assess the need to adjust the allowance for credit losses. Any such resulting adjustments 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, and we may use methodologies that differ from those used by other companies.

The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the three months ended March 31, 2022:

BusinessMass MarketsTotal
(Dollars in millions)
As of December 31, 2021(1)
$88 26 114 
Provision for expected losses8 17 25 
Write-offs charged against the allowance(13)(22)(35)
Recoveries collected3 1 4 
Change in allowance in assets held for sale(1)4 3 
Ending balance at March 31, 2022(1)
$85 26 111 
______________________________________________________________________
(1)As of March 31, 2022 and December 31, 2021, these amounts exclude allowance for credit losses classified as held for sale of $21 million and $24 million, respectively. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.
v3.22.1
Long-Term Debt and Credit Facilities
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Long-Term Debt and Credit Facilities Long-Term Debt and Credit Facilities
The following table reflects the consolidated long-term debt of Lumen Technologies, Inc. and its subsidiaries as of the dates indicated below, including unamortized discounts and premiums unamortized debt issuance costs:

Interest Rates(1)
Maturities(1)
March 31, 2022December 31, 2021
   (Dollars in millions)
Senior Secured Debt: (2)
Lumen Technologies, Inc.
Revolving Credit Facility(3)
LIBOR + 2.00%
2025$1,200 200 
Term Loan A(4)
LIBOR + 2.00%
20251,035 1,050 
Term Loan A-1(4)
LIBOR + 2.00%
2025296 300 
Term Loan B(5)
LIBOR + 2.25%
20274,888 4,900 
Senior notes4.000%20271,250 1,250 
Subsidiaries:
Level 3 Financing, Inc.
Tranche B 2027 Term Loan(6)
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:(7)
    
Lumen Technologies, Inc.
Senior notes
4.500% - 7.650%
2023 - 2042
7,014 8,414 
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%
2025 - 2057
1,986 1,986 
Term loan(8)
LIBOR + 2.00%
2027215 215 
Qwest Capital Funding, Inc.
Senior notes
6.875% - 7.750%
2028 - 2031
255 255 
Finance lease and other obligationsVariousVarious343 347 
Unamortized premiums, net  20 21 
Unamortized debt issuance costs(213)(220)
Total long-term debt  28,553 28,982 
Less current maturities   (156)(1,554)
Long-term debt, excluding current maturities  $28,397 27,428 
______________________________________________________________________ 
(1)As of March 31, 2022.
(2)See Note 7—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2021 for a description of certain parent or subsidiary guarantees and liens securing this debt.
(3)The Revolving Credit Facility had interest rates of 2.387% and 2.103% as of March 31, 2022 and December 31, 2021, respectively.
(4)Term Loans A and A-1 had interest rates of 2.457% and 2.104% as of March 31, 2022 and December 31, 2021, respectively.
(5)Term Loan B had interest rates of 2.707% and 2.354% as of March 31, 2022 and December 31, 2021, respectively.
(6)The Level 3 Tranche B 2027 Term Loan had interest rates of 2.207% and 1.854% as of March 31, 2022 and December 31, 2021, respectively.
(7)As of both March 31, 2022 and December 31, 2021, the table excludes $1.4 billion of 7.995% Embarq senior notes maturing in 2036 that are classified as held for sale. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.
(8)The Qwest Corporation Term Loan had interest rates of 2.460% and 2.110% as of March 31, 2022 and December 31, 2021, respectively.

Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of March 31, 2022 (excluding unamortized premiums, net, and unamortized debt issuance costs), maturing during the following years:

 
(Dollars in millions)(1)
2022 (remaining nine months)$150 
2023977 
20241,158 
20254,108 
20262,062 
2027 and thereafter20,291 
Total long-term debt$28,746 
______________________________________________________________________ 
(1)As of March 31, 2022, these amounts exclude $1.5 billion of debt and finance lease obligations that have been reclassified as held for sale. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.

Borrowings and Repayments

During the three months ended March 31, 2022, Lumen Technologies borrowed $1.4 billion from, and made repayments of $350 million to, its Revolving Credit Facility, and used the resulting net proceeds, together with cash on hand, primarily to repay $1.4 billion of its 5.800% senior notes at maturity.

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 March 31, 2022, 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.
v3.22.1
Severance
 3 Months Ended
Mar. 31, 2022
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 workloads due to reduced demand for certain services.

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

Severance
 (Dollars in millions)
Balance at December 31, 2021$36 
Accrued to expense2 
Payments, net(16)
Balance at March 31, 2022$22 
v3.22.1
Employee Benefits
 3 Months Ended
Mar. 31, 2022
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 11—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, 2021.

As of January 1, 2022, we spun off a new pension plan (the "Lumen Pension Plan") from the Lumen Combined Pension Plan (the "Combined Pension Plan") in anticipation of the sale of the ILEC business, as described further in Note 2—Planned Divestiture of the Latin American and ILEC Businesses. The Lumen Pension Plan covers approximately 2,500 active plan participants along with 19,000 other participants. At the time of the spin-off, the Lumen Pension Plan had a pension benefit obligation of $2.5 billion and assets of $2.2 billion. In addition, the December 31, 2021 actuarial (loss) gain and prior service cost included in accumulated other comprehensive loss was allocated between the Lumen Pension Plan and the Lumen Combined Pension Plan. The amounts allocated to the Lumen Pension Plan are subject to adjustment up to the closing of the sale of the ILEC business. We will recognize pension costs related to both plans throughout 2022 until the sale of the ILEC business, at which time balances related to the Lumen Pension Plan will be reflected in the calculation of our gain on the sale of the business.

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

Pension Plans
 Three Months Ended March 31,
20222021
 (Dollars in millions)
Service cost$12 13 
Interest cost52 50 
Expected return on plan assets(100)(138)
Recognition of prior service credit(3)(2)
Recognition of actuarial loss37 49 
Net periodic pension income$(2)(28)
Net periodic benefit expense for our post-retirement benefit plans includes the following components:

 Post-Retirement Benefit Plans
 Three Months Ended March 31,
 20222021
 (Dollars in millions)
Service cost$3 4 
Interest cost15 12 
Recognition of prior service cost2 4 
Recognition of actuarial loss— 1 
Net periodic post-retirement benefit expense$20 21 

Service costs for our Pension Plans and post-retirement benefit plans are included in the cost of services and products and selling, general and administrative line items on our consolidated statements of operations and all other costs listed above are included in other income, net on our consolidated statements of operations for the three months ended March 31, 2022 and 2021.

Our Pension Plans contain provisions that allow us, from time to time, to offer lump sum payment options to certain former employees in settlement of their future retirement benefits. We record an accounting settlement charge, consisting of the recognition of certain deferred costs of the pension plan associated with these lump sum payments, only if, in the aggregate, they exceed or are probable to exceed the sum of the annual service and interest costs for the plan’s net periodic pension benefit cost, which represents the settlement accounting threshold. The amount of any future non-cash settlement charges will be dependent on several factors, including the total amount of our future lump sum benefit payments.
Benefits paid by the Combined Pension Plan are paid through a trust that holds the plan's assets. Benefit payments for the Lumen Pension Plan are also currently being made from the Combined Pension Plan trust. The pension obligation and pension assets for the Lumen Pension Plan will be revalued in conjunction with the closing of the sale of the ILEC business, and we will make the necessary contributions, if any, to fully fund the pension obligation at, or prior to, the time of closing as required under the purchase agreement. 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. Based on current laws and circumstances, we do not believe we are required to make any contributions to the Combined Pension Plan in 2022, and we do not expect to make voluntary contributions to the trust for the Combined Pension Plan in 2022.
v3.22.1
Earnings Per Common Share
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Earnings Per Common Share Earnings Per Common Share
Basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021 were calculated as follows:

 Three Months Ended March 31,
 20222021
 (Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator)
Net income$599 475 
Net income applicable to common stock for computing basic earnings per common share599 475 
Net income as adjusted for purposes of computing diluted earnings per common share$599 475 
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period1,027,217 1,100,350 
Non-vested restricted stock(18,787)(17,876)
Weighted average shares outstanding for computing basic earnings per common share1,008,430 1,082,474 
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities10 10 
Shares issuable under incentive compensation plans6,775 9,102 
Number of shares as adjusted for purposes of computing diluted earnings per common share1,015,215 1,091,586 
Basic earnings per common share$0.59 0.44 
Diluted earnings per common share
$0.59 0.44 

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 8.2 million and less than 1 million for the three months ended March 31, 2022 and 2021, respectively.
v3.22.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Our financial instruments consist of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, long-term debt, excluding finance lease and other obligations, interest rate swap contracts and certain investments. Due primarily to their short-term nature, the carrying amounts of our cash, cash equivalents, restricted cash, accounts receivable and accounts payable approximate their fair values.

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

We determined the fair values of our long-term debt, including the current portion, based on quoted market prices where available or, if not available, based on inputs other than quoted market prices in active markets that are either directly or indirectly observable such as discounted future cash flows using current market interest rates.
The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:

Input 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 March 31, 2022 and December 31, 2021:

  March 31, 2022December 31, 2021
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
 (Dollars in millions)
Long-term debt, excluding finance lease and other obligations(1)
2$28,210 27,405 28,635 29,221 
Interest rate swap contracts (see Note 11)
2$3 3 25 25 
______________________________________________________________________ 
(1)As of March 31, 2022 and December 31, 2021, these amounts exclude $1.4 billion of carrying amount for both periods and $1.4 billion and $1.6 billion, respectively, of fair value of debt that has been reclassified as held for sale. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.

Investment Held at Net Asset Value

We hold an investment in a limited partnership that functions as a holding company for a portion of the colocation and data center business that we divested in 2017. The limited partnership solely holds investments in those entities and has sole discretion as to the amount and timing of distributions of the underlying assets. As of March 31, 2022, the underlying investments held by the limited partnership are traded in active markets and as such, we account for our investment in the limited partnership using net asset value ("NAV"). As of March 31, 2022, the limited partnership is subject to lock-up agreements that restrict the sale of certain underlying assets. The restrictions are set to terminate in 2022.

As of March 31, 2022As of December 31, 2021
Net Asset Value
(Dollars in millions)
Investment in limited partnership(1)
$365 299 
______________________________________________________________________
(1)For the three months ended March 31, 2022, we recognized a $66 million gain on investment, reflected in other income, net in our consolidated statement of operations.
v3.22.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2022
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 6—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, our interest expense increases. Conversely, if interest rates decrease, our 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.

In 2019, we entered into variable-to-fixed interest rate swap agreements to hedge the interest on $4.0 billion notional amount of floating rate debt. A portion of these swap agreements with a total notional amount of $2.5 billion expired on March 31, 2022. The remaining agreements expire June 30, 2022.

As of March 31, 2022 and December 31, 2021, we evaluated the effectiveness of our remaining hedges quantitatively and determined that hedges in effect on such dates 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 March 31, 2022 and December 31, 2021, as follows (in millions):

March 31, 2022December 31, 2021
Derivatives designated asBalance Sheet LocationFair Value
Cash flow hedging contractsOther current and noncurrent liabilities$3 25 

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

Derivatives designated as hedging instruments20222021
Cash flow hedging contracts
Three Months Ended March 31,$22 20 
Amounts included in AOCI as of March 31, 2022 will be reclassified into earnings upon the settlement of the remaining cash flow hedging contracts during the second quarter of 2022. We estimate that $3 million of net losses on the interest rate swaps (based on the estimated LIBOR curve as of March 31, 2022) will be reflected in our consolidated statements of operations upon settlement of the remaining agreements in the second quarter of 2022.
v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We report our results within two segments: Business and Mass Markets.

Under our Business segment we provide products and services to meet the needs of our enterprise and wholesale customers under four distinct sales channels: International and Global Accounts, Large Enterprise, Mid-Market Enterprise and Wholesale. 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, in each case through the sales channels outlined above.

Under our Mass Markets Segment, we provide products and services to residential and small business customers. Following the completion of the CAF II program at December 31, 2021, we recategorized our products used to report our Mass Markets segment revenue and currently use the following categories: Fiber Broadband, Other Broadband and Voice and Other. See detailed descriptions of these product and service categories in Note 4—Revenue Recognition.

As described in more detail below, our segments are managed based on the direct costs of providing services to their customers and directly 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.

The following table summarizes our segment results for the three months ended March 31, 2022 and 2021, based on the segment categorization we were operating under at March 31, 2022.

Three Months Ended March 31, 2022
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,401 1,275 4,676 — 4,676 
Expenses:
Cost of services and products815 32 847 1,138 1,985 
Selling, general and administrative298 134 432 368 800 
Less: stock-based compensation— — — (23)(23)
Total expense1,113 166 1,279 1,483 2,762 
Total adjusted EBITDA$2,288 1,109 3,397 (1,483)1,914 

Three Months Ended March 31, 2021
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,595 1,434 5,029 — 5,029 
Expenses:
Cost of services and products884 43 927 1,209 2,136 
Selling, general and administrative304 134 438 318 756 
Less: stock-based compensation— — — (20)(20)
Total expense1,188 177 1,365 1,507 2,872 
Total adjusted EBITDA$2,407 1,257 3,664 (1,507)2,157 
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. We have not allocated assets or debt to specific segments.

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 Finance, Human Resources, Legal, Marketing, Product Management and IT, which are reported as "Operations and other expenses" in the table below;

•depreciation and amortization expense;

•goodwill or other impairments;

•interest expense;

•stock-based compensation; and

•other income and expense items.

The following table reconciles total segment adjusted EBITDA to net income for the three months ended March 31, 2022 and 2021:

 Three Months Ended March 31,
 20222021
 (Dollars in millions)
Total segment adjusted EBITDA$3,397 3,664 
Depreciation and amortization(808)(1,150)
Operations and other expenses(1,483)(1,507)
Stock-based compensation(23)(20)
Operating income1,083 987 
Total other expense, net(282)(355)
Income before income taxes801 632 
Income tax expense202 157 
Net income$599 475 
v3.22.1
Commitments and Contingencies and Other Items
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 aggregated to approximately $102 million and are included in other current liabilities, other liabilities or liabilities held for sale 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 asserted 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 alleged 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 in March 2022, the appellate court affirmed the district court's order in part and reversed it in part. It then remanded the case to the district court for further proceedings.

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 our 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. Those settlements are final. 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.

Telephone Consumer Protection Act Litigation

In December 2020, Lumen was named as a defendant in Diana Mey v. CenturyLink Communications, LLC, et al., an action pending in the US District Court for the Northern District of West Virginia alleging violations of the Telephone Consumer Protection Act for delivering unsolicited calls to her mobile phone. She asserts claims on behalf of herself and a putative class of similarly situated persons. The complaint seeks damages, statutory awards, costs and fees, and other relief. We are defending the claims asserted.

December 2018 Outage Proceedings

We experienced an outage on one of our transport networks that impacted voice, IP, 911, and transport services for some of our customers between the 27th and 29th of December 2018. We believe that the outage was caused by a faulty network management card from a third-party equipment vendor.

The FCC and four states (both Washington Utilities and Transportation Commission ("WUTC") and the Washington Attorney General; the Montana Public Service Commission; the Nebraska Public Service Commission; and the Wyoming Public Service Commission) initiated formal investigations. In November 2020, following the FCC's release of a public report on the outage, we negotiated a settlement which was released by the FCC in December 2020. The amount of the settlement was not material to our financial statements.

In December 2020, the Staff of the WUTC filed a complaint against us based on the December 2018 outage, seeking penalties owed for alleged violations of Washington regulations and laws. We have denied the allegations and will defend the claims asserted.

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 we 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. The Company has provided SUNAT the information requested about tax payments made in 2001.

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, 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 $51 million as of March 31, 2022, in excess of the reserved accruals established for these matters.

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 or commercial disputes.

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 within the next twelve months if they are not otherwise resolved. Where applicable, we are seeking full or partial indemnification from our vendors and suppliers. As with all litigation, we are vigorously defending these actions and, as a matter of course, are prepared to litigate these matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities.

We are subject to various foreign, federal, state and local environmental protection and health and safety laws. From time to time, we are subject to judicial and administrative proceedings brought by various governmental authorities under these laws. Several such proceedings are currently pending, but none is reasonably expected to exceed $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 in this Note do not reflect all of our contingencies. For additional information on our contingencies, see Note 18—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, 2021. 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.
v3.22.1
Other Financial Information
 3 Months Ended
Mar. 31, 2022
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:

March 31, 2022December 31, 2021
 (Dollars in millions)
Prepaid expenses$410 295 
Income tax receivable17 22 
Materials, supplies and inventory128 96 
Contract assets45 45 
Contract acquisition costs139 142 
Contract fulfillment costs107 106 
Note receivable56 56 
Receivable for sale of land49 56 
Other11 11 
Total other current assets(1)
$962 829 
______________________________________________________________________
(1)As of March 31, 2022 and December 31, 2021, other current assets exclude $123 million and $126 million, respectively, that have been reclassified as held for sale.
v3.22.1
Accumulated Other Comprehensive Loss
 3 Months Ended
Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
Information Relating to 2022

The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheet by component for the three months ended March 31, 2022:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherInterest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2021$(1,577)(164)(400)(17)(2,158)
Other comprehensive income before reclassifications— — 67 — 67 
Amounts reclassified from accumulated other comprehensive loss26 1 — 17 44 
Net current-period other comprehensive income26 1 67 17 111 
Balance at March 31, 2022$(1,551)(163)(333)— (2,047)

The table below presents further information about our reclassifications out of accumulated other comprehensive loss by component for the three months ended March 31, 2022:

Three Months Ended March 31, 2022Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$22 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$17 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$37 Other income, net
Prior service credit(1)Other income, net
Total before tax36  
Income tax benefit(9)Income tax expense
Net of tax$27  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit expense (income) related to our pension and post-retirement plans.
Information Relating to 2021

    The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three months ended March 31, 2021:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherInterest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2020$(2,197)(272)(265)(79)(2,813)
Other comprehensive loss before reclassifications— — (86)— (86)
Amounts reclassified from accumulated other comprehensive loss35 4 — 15 54 
Net current-period other comprehensive income (loss)35 4 (86)15 (32)
Balance at March 31, 2021$(2,162)(268)(351)(64)(2,845)

The table below presents further information about our reclassifications out of accumulated other comprehensive loss by component for the three months ended March 31, 2021:

Three Months Ended March 31, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$20 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$15 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$50 Other income, net
Prior service cost2 Other income, net
Total before tax52  
Income tax benefit(13)Income tax expense
Net of tax$39  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit income related to our pension and post-retirement plans.
v3.22.1
Labor Union Contracts
 3 Months Ended
Mar. 31, 2022
Risks and Uncertainties [Abstract]  
Labor Union Contracts Labor Union ContractsAs of March 31, 2022, approximately 22% of our employees were represented by the Communication Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW"). Approximately 2% of our represented employees are subject to collective bargaining agreements that expired and were being renegotiated as of March 31, 2022. Approximately 11% of our represented employees are subject to collective bargaining agreements that are scheduled to expire over the 12 month period ending March 31, 2023.
v3.22.1
Background (Policies)
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

Our consolidated balance sheet as of December 31, 2021, 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 note 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 three 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, 2021.

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, 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 recategorization of our Mass Markets revenue by product category in our segment reporting. See Note 12—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.
Recently Adopted and Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncements

Government Assistance

On January 1, 2022, we adopted Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2020-10”). This ASU increases transparency in financial reporting by requiring business entities to disclose information about certain types of government assistance they receive. The ASU only impacts annual financial statement note disclosures. Therefore, the adoption of ASU 2021-10 did not have a material impact to our consolidated financial statements.

Leases

On January 1, 2022, we adopted ASU 2021-05, “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” (“ASU 2021-05”). This ASU (i) amends the lease classification requirements for lessors to align them with practice under ASC Topic 840, (ii) provides criteria for lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease; and (iii) when a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The adoption of ASU 2021-05 did not have a material impact to our consolidated financial statements.

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 guidance 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)” (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 March 31, 2022, we determined there was no application or discontinuation of the equity method during the reporting periods covered by this report. 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, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“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.

Recently Issued Accounting Pronouncements

In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures” (“ASU 2022-02”). These amendments eliminate the TDR recognition and measurement guidance and enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. ASU 2020-02 will become effective for us in the first quarter of fiscal 2023 and early adoption is permitted. As of March 31, 2022, we do not expect ASU 2022-02 to have an impact to our consolidated financial statements.
In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method” (ASU 2022-01). The ASU expands the current single-layer method to allow multiple hedged layers of a single closed portfolio under the method. ASU 2020-01 will become effective for us in the first quarter of fiscal 2023 and early adoption is permitted. As of March 31, 2022, we do not expect ASU 2022-01 to have an impact to our consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 will become effective for us in the first quarter of fiscal 2023 and early adoption is permitted. As of March 31, 2022, we do not expect ASU 2021-08 to have an impact to our consolidated financial statements.

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 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 March 31, 2022, we do not expect ASU 2021-01 to have a material impact to our consolidated financial statements.
v3.22.1
Planned Divestiture of the Latin American and ILEC Businesses (Tables)
 3 Months Ended
Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Components of Pre-Tax Income and Held for Sale Assets and Liabilities The pre-tax net income of the disposal groups is estimated to be as follows in the table below:
 Three Months Ended March 31,
 20222021
(Dollars in millions)
Latin American business pre-tax net income$83 28 
ILEC business pre-tax net income255 149 
Total disposal groups pre-tax net income$338 177 
The principal components of the held for sale assets and liabilities are as follows:

March 31, 2022December 31, 2021
Latin American BusinessILEC BusinessTotalLatin American BusinessILEC BusinessTotal
(Dollars in millions)
Assets held for sale
Cash and cash equivalents$58 1 59 39 1 40 
Accounts receivable, less allowance of $3, $18, $21, $3, $21 and $24
93 191 284 83 227 310 
Other current assets83 40 123 81 45 126 
Property, plant and equipment, net accumulated depreciation of $456, $8,379, $8,835, $434, $8,303 and $8,737
1,704 3,565 5,269 1,591 3,491 5,082 
Goodwill(1)
259 2,615 2,874 239 2,615 2,854 
Other intangible assets, net138 158 296 126 158 284 
Other non-current assets83 37 120 75 38 113 
Total assets held for sale$2,418 6,607 9,025 2,234 6,575 8,809 
Liabilities held for sale
Accounts payable$90 50 140 101 64 165 
Salaries and benefits25 25 50 23 25 48 
Income and other taxes34 30 64 27 24 51 
Interest— 38 38 — 10 10 
Current portion of deferred revenue26 82 108 26 90 116 
Other current liabilities7 23 30 7 35 42 
Long-term debt, net of discounts(2)
— 1,387 1,387 — 1,377 1,377 
Deferred income taxes, net148 — 148 129 — 129 
Pension and other post-retirement benefits(3)
2 56 58 2 56 58 
Other non-current liabilities132 95 227 120 141 261 
Total liabilities held for sale$464 1,786 2,250 435 1,822 2,257 
______________________________________________________________________ 
(1)The assignment of goodwill was based on the relative fair values of the applicable reporting units prior to being reclassified as held for sale.
(2)Long-term debt, net of discounts, as of March 31, 2022 and December 31, 2021 includes (i) $1.4 billion for both periods of 7.995% Embarq senior notes maturing in 2036, (ii) $116 million and $117 million of related unamortized discounts, respectively, and (iii) $66 million and $57 million of long-term finance lease obligations, respectively.
(3)Excludes pension obligation of approximately $2.5 billion for the ILEC business as of March 31, 2022 and December 31, 2021, which will be transferred to the purchaser of the ILEC business upon closing. As of January 1, 2022, a new pension plan (the "Lumen Pension Plan") was spun off in anticipation of this transfer. Along with the transfer of the $2.5 billion pension benefit obligation, $2.2 billion of assets were allocated to the new plan. The remaining portion of the obligation is expected to be separately funded with cash paid by Lumen at the time of closing. See Note 8—Employee Benefits for additional information.
v3.22.1
Goodwill, Customer Relationships and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
Goodwill, customer relationships and other intangible assets consisted of the following:

March 31, 2022December 31, 2021
(Dollars in millions)
Goodwill$15,976 15,986 
Indefinite-lived intangible assets$9 9 
Other intangible assets subject to amortization: 
Customer relationships, less accumulated amortization of $3,268 and $11,740(1)
5,180 5,365 
Capitalized software, less accumulated amortization of $3,656 and $3,624
1,469 1,459 
Trade names, patents and other, less accumulated amortization of $162 and $160
127 137 
Total other intangible assets, net$6,785 6,970 
______________________________________________________________________
(1)    Certain customer relationships with a gross carrying value of $8.7 billion became fully amortized during 2021 and were retired during the first quarter of 2022.
Schedule of Goodwill
The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2021 through March 31, 2022:

 BusinessMass MarketsTotal
 (Dollars in millions)
As of December 31, 2021(1)(2)
$11,235 4,751 15,986 
Effect of foreign currency exchange rate change and other(10)— (10)
As of March 31, 2022(1)(2)
$11,225 4,751 15,976 
______________________________________________________________________
(1)Goodwill at March 31, 2022 and December 31, 2021 is net of accumulated impairment losses of $7.7 billion.
(2)As of March 31, 2022 and December 31, 2021, these amounts exclude goodwill classified as held for sale of $2.9 billion. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
We estimate that total amortization expense for finite-lived intangible assets for the years ending December 31, 2022 through 2026 will be as provided in the table below. As a result of reclassifying our Latin American and ILEC businesses as being held for sale on our March 31, 2022 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of the businesses to be divested. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.

 (Dollars in millions)
2022 (remaining nine months)$770 
2023948 
2024878 
2025811 
2026735 
v3.22.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue The following table provides 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 March 31, 2022Three Months Ended March 31, 2021
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$183 (73)110 183 (69)114 
IP and Data Services423 — 423 429 — 429 
Fiber Infrastructure219 (34)185 217 (30)187 
Voice and Other174 — 174 191 — 191 
Total IGAM Revenue999 (107)892 1,020 (99)921 
Large Enterprise
Compute and Application Services163 (14)149 169 (15)154 
IP and Data Services388 — 388 402 — 402 
Fiber Infrastructure113 (13)100 130 (15)115 
Voice and Other213 — 213 252 — 252 
Total Large Enterprise Revenue877 (27)850 953 (30)923 
Mid-Market Enterprise
Compute and Application Services33 (7)26 32 (8)24 
IP and Data Services415 (1)414 442 (1)441 
Fiber Infrastructure49 (2)47 56 (2)54 
Voice and Other139 — 139 163 — 163 
Total Mid-Market Enterprise Revenue636 (10)626 693 (11)682 
Wholesale
Compute and Application Services48 (40)8 47 (40)7 
IP and Data Services296 — 296 305 — 305 
Fiber Infrastructure154 (27)127 154 (31)123 
Voice and Other391 (64)327 423 (63)360 
Total Wholesale Revenue889 (131)758 929 (134)795 
Business Segment by Product Category
Compute and Application Services427 (134)293 431 (132)299 
IP and Data Services1,522 (1)1,521 1,578 (1)1,577 
Fiber Infrastructure535 (76)459 557 (78)479 
Voice and Other917 (64)853 1,029 (63)966 
Total Business Segment Revenue3,401 (275)3,126 3,595 (274)3,321 
Mass Markets Segment by Product Category
Fiber Broadband145 (5)140 122 — 122 
Other Broadband610 (56)554 648 (55)593 
Voice and Other520 (79)441 664 (145)519 
Total Mass Markets Revenue1,275 (140)1,135 1,434 (200)1,234 
Total Revenue$4,676 (415)4,261 5,029 (474)4,555 
_____________________________________________________________________
(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, net of amounts reclassified as held for sale, as of March 31, 2022 and December 31, 2021:

March 31, 2022December 31, 2021
 (Dollars in millions)
Customer receivables(1)
$1,365 1,493 
Contract assets(2)
70 73 
Contract liabilities(3)
671 680 
______________________________________________________________________
(1)Reflects gross customer receivables of $1.5 billion and $1.6 billion, net of allowance for credit losses of $99 million and $102 million, at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, these amounts exclude customer receivables, net reclassified as held for sale of $260 million and $288 million, respectively.
(2)As of March 31, 2022 and December 31, 2021, these amounts exclude contract assets reclassified as held for sale of $9 million as of both periods.
(3)As of March 31, 2022 and December 31, 2021, these amounts exclude contract liabilities reclassified as held for sale of $154 million and $161 million, respectively.
Capitalized Contract Cost
The following table provides changes in our contract acquisition costs and fulfillment costs:

Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Acquisition Costs(1)
Fulfillment Costs(2)
Acquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance$222 186 289 216 
Costs incurred43 40 44 37 
Amortization(52)(39)(54)(37)
Change in contract costs held for sale2 — — — 
End of period balance$215 187 279 216 
______________________________________________________________________
(1)The beginning and ending balance for the three months ended March 31, 2022 exclude acquisition costs reclassified as held for sale of $34 million and $32 million, respectively.
(2)Both the beginning and ending balance for the three months ended March 31, 2022 exclude fulfillment costs reclassified as held for sale of $32 million.
v3.22.1
Credit Losses on Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
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 three months ended March 31, 2022:

BusinessMass MarketsTotal
(Dollars in millions)
As of December 31, 2021(1)
$88 26 114 
Provision for expected losses8 17 25 
Write-offs charged against the allowance(13)(22)(35)
Recoveries collected3 1 4 
Change in allowance in assets held for sale(1)4 3 
Ending balance at March 31, 2022(1)
$85 26 111 
______________________________________________________________________
(1)As of March 31, 2022 and December 31, 2021, these amounts exclude allowance for credit losses classified as held for sale of $21 million and $24 million, respectively. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.
v3.22.1
Long-Term Debt and Credit Facilities (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Including Unamortized Discounts and Premiums
The following table reflects the consolidated long-term debt of Lumen Technologies, Inc. and its subsidiaries as of the dates indicated below, including unamortized discounts and premiums unamortized debt issuance costs:

Interest Rates(1)
Maturities(1)
March 31, 2022December 31, 2021
   (Dollars in millions)
Senior Secured Debt: (2)
Lumen Technologies, Inc.
Revolving Credit Facility(3)
LIBOR + 2.00%
2025$1,200 200 
Term Loan A(4)
LIBOR + 2.00%
20251,035 1,050 
Term Loan A-1(4)
LIBOR + 2.00%
2025296 300 
Term Loan B(5)
LIBOR + 2.25%
20274,888 4,900 
Senior notes4.000%20271,250 1,250 
Subsidiaries:
Level 3 Financing, Inc.
Tranche B 2027 Term Loan(6)
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:(7)
    
Lumen Technologies, Inc.
Senior notes
4.500% - 7.650%
2023 - 2042
7,014 8,414 
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%
2025 - 2057
1,986 1,986 
Term loan(8)
LIBOR + 2.00%
2027215 215 
Qwest Capital Funding, Inc.
Senior notes
6.875% - 7.750%
2028 - 2031
255 255 
Finance lease and other obligationsVariousVarious343 347 
Unamortized premiums, net  20 21 
Unamortized debt issuance costs(213)(220)
Total long-term debt  28,553 28,982 
Less current maturities   (156)(1,554)
Long-term debt, excluding current maturities  $28,397 27,428 
______________________________________________________________________ 
(1)As of March 31, 2022.
(2)See Note 7—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2021 for a description of certain parent or subsidiary guarantees and liens securing this debt.
(3)The Revolving Credit Facility had interest rates of 2.387% and 2.103% as of March 31, 2022 and December 31, 2021, respectively.
(4)Term Loans A and A-1 had interest rates of 2.457% and 2.104% as of March 31, 2022 and December 31, 2021, respectively.
(5)Term Loan B had interest rates of 2.707% and 2.354% as of March 31, 2022 and December 31, 2021, respectively.
(6)The Level 3 Tranche B 2027 Term Loan had interest rates of 2.207% and 1.854% as of March 31, 2022 and December 31, 2021, respectively.
(7)As of both March 31, 2022 and December 31, 2021, the table excludes $1.4 billion of 7.995% Embarq senior notes maturing in 2036 that are classified as held for sale. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.
(8)The Qwest Corporation Term Loan had interest rates of 2.460% and 2.110% as of March 31, 2022 and December 31, 2021, respectively.
Schedule of Maturities of Long-term Debt
Set forth below is the aggregate principal amount of our long-term debt as of March 31, 2022 (excluding unamortized premiums, net, and unamortized debt issuance costs), maturing during the following years:

 
(Dollars in millions)(1)
2022 (remaining nine months)$150 
2023977 
20241,158 
20254,108 
20262,062 
2027 and thereafter20,291 
Total long-term debt$28,746 
______________________________________________________________________ 
(1)As of March 31, 2022, these amounts exclude $1.5 billion of debt and finance lease obligations that have been reclassified as held for sale. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.
v3.22.1
Severance (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2021$36 
Accrued to expense2 
Payments, net(16)
Balance at March 31, 2022$22 
v3.22.1
Employee Benefits (Tables)
 3 Months Ended
Mar. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Pension Benefit (Income) Expense and Post-retirement Benefit Expense
Net periodic benefit income for the Combined Pension Plan and the Lumen Pension Plan (together the "Pension Plans") includes the following components:

Pension Plans
 Three Months Ended March 31,
20222021
 (Dollars in millions)
Service cost$12 13 
Interest cost52 50 
Expected return on plan assets(100)(138)
Recognition of prior service credit(3)(2)
Recognition of actuarial loss37 49 
Net periodic pension income$(2)(28)
Net periodic benefit expense for our post-retirement benefit plans includes the following components:

 Post-Retirement Benefit Plans
 Three Months Ended March 31,
 20222021
 (Dollars in millions)
Service cost$3 4 
Interest cost15 12 
Recognition of prior service cost2 4 
Recognition of actuarial loss— 1 
Net periodic post-retirement benefit expense$20 21 
v3.22.1
Earnings Per Common Share (Tables)
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Common Share
Basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021 were calculated as follows:

 Three Months Ended March 31,
 20222021
 (Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator)
Net income$599 475 
Net income applicable to common stock for computing basic earnings per common share599 475 
Net income as adjusted for purposes of computing diluted earnings per common share$599 475 
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period1,027,217 1,100,350 
Non-vested restricted stock(18,787)(17,876)
Weighted average shares outstanding for computing basic earnings per common share1,008,430 1,082,474 
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities10 10 
Shares issuable under incentive compensation plans6,775 9,102 
Number of shares as adjusted for purposes of computing diluted earnings per common share1,015,215 1,091,586 
Basic earnings per common share$0.59 0.44 
Diluted earnings per common share
$0.59 0.44 
v3.22.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurement Inputs and Valuation Techniques
The three input levels in the hierarchy of fair value measurements are 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.
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 March 31, 2022 and December 31, 2021:

  March 31, 2022December 31, 2021
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
 (Dollars in millions)
Long-term debt, excluding finance lease and other obligations(1)
2$28,210 27,405 28,635 29,221 
Interest rate swap contracts (see Note 11)
2$3 3 25 25 
______________________________________________________________________ 
(1)As of March 31, 2022 and December 31, 2021, these amounts exclude $1.4 billion of carrying amount for both periods and $1.4 billion and $1.6 billion, respectively, of fair value of debt that has been reclassified as held for sale. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share
As of March 31, 2022As of December 31, 2021
Net Asset Value
(Dollars in millions)
Investment in limited partnership(1)
$365 299 
______________________________________________________________________
(1)For the three months ended March 31, 2022, we recognized a $66 million gain on investment, reflected in other income, net in our consolidated statement of operations.
v3.22.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021, as follows (in millions):

March 31, 2022December 31, 2021
Derivatives designated asBalance Sheet LocationFair Value
Cash flow hedging contractsOther current and noncurrent liabilities$3 25 
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 instruments20222021
Cash flow hedging contracts
Three Months Ended March 31,$22 20 
The table below presents further information about our reclassifications out of accumulated other comprehensive loss by component for the three months ended March 31, 2022:

Three Months Ended March 31, 2022Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$22 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$17 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$37 Other income, net
Prior service credit(1)Other income, net
Total before tax36  
Income tax benefit(9)Income tax expense
Net of tax$27  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit expense (income) related to our pension and post-retirement plans.
The table below presents further information about our reclassifications out of accumulated other comprehensive loss by component for the three months ended March 31, 2021:

Three Months Ended March 31, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$20 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$15 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$50 Other income, net
Prior service cost2 Other income, net
Total before tax52  
Income tax benefit(13)Income tax expense
Net of tax$39  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit income related to our pension and post-retirement plans.
v3.22.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Results
The following table summarizes our segment results for the three months ended March 31, 2022 and 2021, based on the segment categorization we were operating under at March 31, 2022.

Three Months Ended March 31, 2022
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,401 1,275 4,676 — 4,676 
Expenses:
Cost of services and products815 32 847 1,138 1,985 
Selling, general and administrative298 134 432 368 800 
Less: stock-based compensation— — — (23)(23)
Total expense1,113 166 1,279 1,483 2,762 
Total adjusted EBITDA$2,288 1,109 3,397 (1,483)1,914 

Three Months Ended March 31, 2021
BusinessMass MarketsTotal SegmentsOperations and OtherTotal
(Dollars in millions)
Revenue$3,595 1,434 5,029 — 5,029 
Expenses:
Cost of services and products884 43 927 1,209 2,136 
Selling, general and administrative304 134 438 318 756 
Less: stock-based compensation— — — (20)(20)
Total expense1,188 177 1,365 1,507 2,872 
Total adjusted EBITDA$2,407 1,257 3,664 (1,507)2,157 
Reconciliation of Operating Profit (Loss) From Segments to Consolidated Net Income
The following table reconciles total segment adjusted EBITDA to net income for the three months ended March 31, 2022 and 2021:

 Three Months Ended March 31,
 20222021
 (Dollars in millions)
Total segment adjusted EBITDA$3,397 3,664 
Depreciation and amortization(808)(1,150)
Operations and other expenses(1,483)(1,507)
Stock-based compensation(23)(20)
Operating income1,083 987 
Total other expense, net(282)(355)
Income before income taxes801 632 
Income tax expense202 157 
Net income$599 475 
v3.22.1
Other Financial Information (Tables)
 3 Months Ended
Mar. 31, 2022
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:

March 31, 2022December 31, 2021
 (Dollars in millions)
Prepaid expenses$410 295 
Income tax receivable17 22 
Materials, supplies and inventory128 96 
Contract assets45 45 
Contract acquisition costs139 142 
Contract fulfillment costs107 106 
Note receivable56 56 
Receivable for sale of land49 56 
Other11 11 
Total other current assets(1)
$962 829 
______________________________________________________________________
(1)As of March 31, 2022 and December 31, 2021, other current assets exclude $123 million and $126 million, respectively, that have been reclassified as held for sale.
v3.22.1
Accumulated Other Comprehensive Loss (Tables)
 3 Months Ended
Mar. 31, 2022
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 three months ended March 31, 2022:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherInterest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2021$(1,577)(164)(400)(17)(2,158)
Other comprehensive income before reclassifications— — 67 — 67 
Amounts reclassified from accumulated other comprehensive loss26 1 — 17 44 
Net current-period other comprehensive income26 1 67 17 111 
Balance at March 31, 2022$(1,551)(163)(333)— (2,047)
The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the three months ended March 31, 2021:
Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherInterest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2020$(2,197)(272)(265)(79)(2,813)
Other comprehensive loss before reclassifications— — (86)— (86)
Amounts reclassified from accumulated other comprehensive loss35 4 — 15 54 
Net current-period other comprehensive income (loss)35 4 (86)15 (32)
Balance at March 31, 2021$(2,162)(268)(351)(64)(2,845)
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 instruments20222021
Cash flow hedging contracts
Three Months Ended March 31,$22 20 
The table below presents further information about our reclassifications out of accumulated other comprehensive loss by component for the three months ended March 31, 2022:

Three Months Ended March 31, 2022Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$22 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$17 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$37 Other income, net
Prior service credit(1)Other income, net
Total before tax36  
Income tax benefit(9)Income tax expense
Net of tax$27  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit expense (income) related to our pension and post-retirement plans.
The table below presents further information about our reclassifications out of accumulated other comprehensive loss by component for the three months ended March 31, 2021:

Three Months Ended March 31, 2021Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$20 Interest expense
Income tax benefit(5)Income tax expense
Net of tax$15 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$50 Other income, net
Prior service cost2 Other income, net
Total before tax52  
Income tax benefit(13)Income tax expense
Net of tax$39  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit income related to our pension and post-retirement plans.
v3.22.1
Background (Details) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Book overdraft balance $ 0 $ 0
v3.22.1
Planned Divestiture of the Latin American and ILEC Businesses - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Depreciation and amortization   $ 808 $ 1,150  
Disposal Group, Held-for-sale, Not Discontinued Operations        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Long-term debt, net of discounts $ 1,387 1,387   $ 1,377
Depreciation and amortization   170    
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal   0    
Disposal Group, Held-for-sale, Not Discontinued Operations | Embarq | Senior notes        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Long-term debt, net of discounts 1,400 1,400 $ 1,400 1,400
Disposal Group, Held-for-sale, Not Discontinued Operations | Latin American Business        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Long-term debt, net of discounts 0 0   0
Depreciation and amortization   49    
Disposal Group, Held-for-sale, Not Discontinued Operations | Latin American Business | Level 3 Parent, LLC        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Cash consideration from disposal of business 2,700 2,700    
Working capital, other purchase price adjustments and transaction expenses 50      
Disposal Group, Held-for-sale, Not Discontinued Operations | ILEC Business        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Cash consideration from disposal of business 7,500 7,500    
Long-term debt, net of discounts 1,387 1,387   $ 1,377
Purchaser's transaction expenses $ 1,700      
Depreciation and amortization   $ 121    
v3.22.1
Planned Divestiture of the Latin American and ILEC Businesses - Pre-tax Net Income (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Pretax net income (loss) $ 338 $ 177
Latin American Business    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Pretax net income (loss) 83 28
ILEC Business    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Pretax net income (loss) $ 255 $ 149
v3.22.1
Planned Divestiture of the Latin American and ILEC Businesses - Components of Held for Sale Assets and Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Jan. 01, 2022
Dec. 31, 2021
Mar. 31, 2021
Assets held for sale        
Cash and cash equivalents $ 59     $ 0
Other current assets $ 123   $ 126  
Senior notes | Embarq        
Liabilities held for sale        
Stated interest rate 7.995%   7.995%  
ILEC Business | Defined Benefit Plan, Funded Plan        
Liabilities held for sale        
Pension liability $ 2,500 $ 2,500 $ 2,500  
ILEC Business | Defined Benefit Plan, Funded through Transfer of Plan Assets        
Liabilities held for sale        
Pension liability   $ 2,200    
Disposal Group, Held-for-sale, Not Discontinued Operations        
Assets held for sale        
Cash and cash equivalents 59   40  
Accounts receivable, less allowance of $3, $18, $21, $3, $21 and $24 284   310  
Other current assets 123   126  
Property, plant and equipment, net accumulated depreciation of $456, $8,379, $8,835, $434, $8,303 and $8,737 5,269   5,082  
Goodwill 2,874   2,854  
Other intangible assets, net 296   284  
Other non-current assets 120   113  
Total assets held for sale 9,025   8,809  
Liabilities held for sale        
Accounts payable 140   165  
Salaries and benefits 50   48  
Income and other taxes 64   51  
Interest 38   10  
Current portion of deferred revenue 108   116  
Other current liabilities 30   42  
Long-term debt, net of discounts 1,387   1,377  
Deferred income taxes, net 148   129  
Pension and other post-retirement benefits 58   58  
Other non-current liabilities 227   261  
Total liabilities held for sale 2,250   2,257  
Allowance for doubtful accounts 21   24  
Accumulated depreciation 8,835   8,737  
Long-term finance lease obligations 66   57  
Disposal Group, Held-for-sale, Not Discontinued Operations | Senior notes | Embarq        
Liabilities held for sale        
Long-term debt, net of discounts 1,400   1,400 $ 1,400
Unamortized discount 116   117  
Disposal Group, Held-for-sale, Not Discontinued Operations | Latin American Business        
Assets held for sale        
Cash and cash equivalents 58   39  
Accounts receivable, less allowance of $3, $18, $21, $3, $21 and $24 93   83  
Other current assets 83   81  
Property, plant and equipment, net accumulated depreciation of $456, $8,379, $8,835, $434, $8,303 and $8,737 1,704   1,591  
Goodwill 259   239  
Other intangible assets, net 138   126  
Other non-current assets 83   75  
Total assets held for sale 2,418   2,234  
Liabilities held for sale        
Accounts payable 90   101  
Salaries and benefits 25   23  
Income and other taxes 34   27  
Interest 0   0  
Current portion of deferred revenue 26   26  
Other current liabilities 7   7  
Long-term debt, net of discounts 0   0  
Deferred income taxes, net 148   129  
Pension and other post-retirement benefits 2   2  
Other non-current liabilities 132   120  
Total liabilities held for sale 464   435  
Allowance for doubtful accounts 3   3  
Accumulated depreciation 456   434  
Disposal Group, Held-for-sale, Not Discontinued Operations | ILEC Business        
Assets held for sale        
Cash and cash equivalents 1   1  
Accounts receivable, less allowance of $3, $18, $21, $3, $21 and $24 191   227  
Other current assets 40   45  
Property, plant and equipment, net accumulated depreciation of $456, $8,379, $8,835, $434, $8,303 and $8,737 3,565   3,491  
Goodwill 2,615   2,615  
Other intangible assets, net 158   158  
Other non-current assets 37   38  
Total assets held for sale 6,607   6,575  
Liabilities held for sale        
Accounts payable 50   64  
Salaries and benefits 25   25  
Income and other taxes 30   24  
Interest 38   10  
Current portion of deferred revenue 82   90  
Other current liabilities 23   35  
Long-term debt, net of discounts 1,387   1,377  
Deferred income taxes, net 0   0  
Pension and other post-retirement benefits 56   56  
Other non-current liabilities 95   141  
Total liabilities held for sale 1,786   1,822  
Allowance for doubtful accounts 18   21  
Accumulated depreciation $ 8,379   $ 8,303  
v3.22.1
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill, Customer Relationships, and Other Intangible Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Goodwill [Line Items]    
Goodwill $ 15,976 $ 15,986
Indefinite-life intangible assets 9 9
Total other intangible assets, net 6,785 6,970
Customer relationships    
Goodwill [Line Items]    
Finite-lived intangible assets, net 5,180 5,365
Accumulated amortization 3,268 11,740
Capitalized software    
Goodwill [Line Items]    
Finite-lived intangible assets, net 1,469 1,459
Accumulated amortization 3,656 3,624
Trade names, patents and other    
Goodwill [Line Items]    
Finite-lived intangible assets, net 127 137
Accumulated amortization 162 $ 160
Fully amortized and retired customer relationships    
Goodwill [Line Items]    
Gross carrying value $ 8,700  
v3.22.1
Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
segment
reporting_unit
Mar. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]    
Intangible assets, gross (including goodwill) | $ $ 29,800  
Number of reportable segments | segment 2  
Number of operating segments | segment 2  
Number of reporting units | reporting_unit 5  
Amortization of intangible assets | $ $ 274 $ 425
v3.22.1
Goodwill, Customer Relationships and Other Intangible Assets - Rollforward of Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
As of beginning of period $ 15,986  
Effect of foreign currency exchange rate change and other (10)  
As of end of period 15,976 $ 15,986
Accumulated impairment losses 7,700 7,700
Disposal Group, Held-for-sale, Not Discontinued Operations    
Goodwill [Roll Forward]    
Reclassified as held for sale 2,900 2,900
Business    
Goodwill [Roll Forward]    
As of beginning of period 11,235  
Effect of foreign currency exchange rate change and other (10)  
As of end of period 11,225 11,235
Mass Markets    
Goodwill [Roll Forward]    
As of beginning of period 4,751  
Effect of foreign currency exchange rate change and other 0  
As of end of period $ 4,751 $ 4,751
v3.22.1
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Amortization Expense (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 (remaining nine months) $ 770
2023 948
2024 878
2025 811
2026 $ 735
v3.22.1
Revenue Recognition - Revenue by Segment, Sales Channel and Product Category (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Disaggregation of Revenue [Line Items]    
Total revenue $ 4,676 $ 5,029
Operating Segments    
Disaggregation of Revenue [Line Items]    
Total revenue 4,676 5,029
Adjustments for non-ASC 606 revenue (415) (474)
Total revenue from contracts with customers 4,261 4,555
Operating Segments | Business    
Disaggregation of Revenue [Line Items]    
Total revenue 3,401 3,595
Adjustments for non-ASC 606 revenue (275) (274)
Total revenue from contracts with customers 3,126 3,321
Operating Segments | Business | Compute and Application Services    
Disaggregation of Revenue [Line Items]    
Total revenue 427 431
Adjustments for non-ASC 606 revenue (134) (132)
Total revenue from contracts with customers 293 299
Operating Segments | Business | IP and Data Services    
Disaggregation of Revenue [Line Items]    
Total revenue 1,522 1,578
Adjustments for non-ASC 606 revenue (1) (1)
Total revenue from contracts with customers 1,521 1,577
Operating Segments | Business | Fiber Infrastructure    
Disaggregation of Revenue [Line Items]    
Total revenue 535 557
Adjustments for non-ASC 606 revenue (76) (78)
Total revenue from contracts with customers 459 479
Operating Segments | Business | Voice and Other    
Disaggregation of Revenue [Line Items]    
Total revenue 917 1,029
Adjustments for non-ASC 606 revenue (64) (63)
Total revenue from contracts with customers 853 966
Operating Segments | Business | International and Global Accounts ("IGAM")    
Disaggregation of Revenue [Line Items]    
Total revenue 999 1,020
Adjustments for non-ASC 606 revenue (107) (99)
Total revenue from contracts with customers 892 921
Operating Segments | Business | International and Global Accounts ("IGAM") | Compute and Application Services    
Disaggregation of Revenue [Line Items]    
Total revenue 183 183
Adjustments for non-ASC 606 revenue (73) (69)
Total revenue from contracts with customers 110 114
Operating Segments | Business | International and Global Accounts ("IGAM") | IP and Data Services    
Disaggregation of Revenue [Line Items]    
Total revenue 423 429
Adjustments for non-ASC 606 revenue 0 0
Total revenue from contracts with customers 423 429
Operating Segments | Business | International and Global Accounts ("IGAM") | Fiber Infrastructure    
Disaggregation of Revenue [Line Items]    
Total revenue 219 217
Adjustments for non-ASC 606 revenue (34) (30)
Total revenue from contracts with customers 185 187
Operating Segments | Business | International and Global Accounts ("IGAM") | Voice and Other    
Disaggregation of Revenue [Line Items]    
Total revenue 174 191
Adjustments for non-ASC 606 revenue 0 0
Total revenue from contracts with customers 174 191
Operating Segments | Business | Large Enterprise    
Disaggregation of Revenue [Line Items]    
Total revenue 877 953
Adjustments for non-ASC 606 revenue (27) (30)
Total revenue from contracts with customers 850 923
Operating Segments | Business | Large Enterprise | Compute and Application Services    
Disaggregation of Revenue [Line Items]    
Total revenue 163 169
Adjustments for non-ASC 606 revenue (14) (15)
Total revenue from contracts with customers 149 154
Operating Segments | Business | Large Enterprise | IP and Data Services    
Disaggregation of Revenue [Line Items]    
Total revenue 388 402
Adjustments for non-ASC 606 revenue 0 0
Total revenue from contracts with customers 388 402
Operating Segments | Business | Large Enterprise | Fiber Infrastructure    
Disaggregation of Revenue [Line Items]    
Total revenue 113 130
Adjustments for non-ASC 606 revenue (13) (15)
Total revenue from contracts with customers 100 115
Operating Segments | Business | Large Enterprise | Voice and Other    
Disaggregation of Revenue [Line Items]    
Total revenue 213 252
Adjustments for non-ASC 606 revenue 0 0
Total revenue from contracts with customers 213 252
Operating Segments | Business | Mid-Market Enterprise    
Disaggregation of Revenue [Line Items]    
Total revenue 636 693
Adjustments for non-ASC 606 revenue (10) (11)
Total revenue from contracts with customers 626 682
Operating Segments | Business | Mid-Market Enterprise | Compute and Application Services    
Disaggregation of Revenue [Line Items]    
Total revenue 33 32
Adjustments for non-ASC 606 revenue (7) (8)
Total revenue from contracts with customers 26 24
Operating Segments | Business | Mid-Market Enterprise | IP and Data Services    
Disaggregation of Revenue [Line Items]    
Total revenue 415 442
Adjustments for non-ASC 606 revenue (1) (1)
Total revenue from contracts with customers 414 441
Operating Segments | Business | Mid-Market Enterprise | Fiber Infrastructure    
Disaggregation of Revenue [Line Items]    
Total revenue 49 56
Adjustments for non-ASC 606 revenue (2) (2)
Total revenue from contracts with customers 47 54
Operating Segments | Business | Mid-Market Enterprise | Voice and Other    
Disaggregation of Revenue [Line Items]    
Total revenue 139 163
Adjustments for non-ASC 606 revenue 0 0
Total revenue from contracts with customers 139 163
Operating Segments | Business | Wholesale    
Disaggregation of Revenue [Line Items]    
Total revenue 889 929
Adjustments for non-ASC 606 revenue (131) (134)
Total revenue from contracts with customers 758 795
Operating Segments | Business | Wholesale | Compute and Application Services    
Disaggregation of Revenue [Line Items]    
Total revenue 48 47
Adjustments for non-ASC 606 revenue (40) (40)
Total revenue from contracts with customers 8 7
Operating Segments | Business | Wholesale | IP and Data Services    
Disaggregation of Revenue [Line Items]    
Total revenue 296 305
Adjustments for non-ASC 606 revenue 0 0
Total revenue from contracts with customers 296 305
Operating Segments | Business | Wholesale | Fiber Infrastructure    
Disaggregation of Revenue [Line Items]    
Total revenue 154 154
Adjustments for non-ASC 606 revenue (27) (31)
Total revenue from contracts with customers 127 123
Operating Segments | Business | Wholesale | Voice and Other    
Disaggregation of Revenue [Line Items]    
Total revenue 391 423
Adjustments for non-ASC 606 revenue (64) (63)
Total revenue from contracts with customers 327 360
Operating Segments | Mass Markets    
Disaggregation of Revenue [Line Items]    
Total revenue 1,275 1,434
Adjustments for non-ASC 606 revenue (140) (200)
Total revenue from contracts with customers 1,135 1,234
Operating Segments | Mass Markets | Fiber Broadband    
Disaggregation of Revenue [Line Items]    
Total revenue 145 122
Adjustments for non-ASC 606 revenue (5) 0
Total revenue from contracts with customers 140 122
Operating Segments | Mass Markets | Other Broadband    
Disaggregation of Revenue [Line Items]    
Total revenue 610 648
Adjustments for non-ASC 606 revenue (56) (55)
Total revenue from contracts with customers 554 593
Operating Segments | Mass Markets | Voice and Other    
Disaggregation of Revenue [Line Items]    
Total revenue 520 664
Adjustments for non-ASC 606 revenue (79) (145)
Total revenue from contracts with customers $ 441 $ 519
v3.22.1
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Lease income $ 337 $ 332    
Percent of operating revenue 7.00% 7.00%    
Revenue recognized $ 395 $ 425    
Contract with Customer, Liability     $ 841 $ 950
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 32 months      
Weighted Average | Business Customers        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Length of customer life 30 months      
v3.22.1
Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Capitalized Contract Cost [Line Items]    
Customer receivables $ 1,365 $ 1,493
Contract assets 70 73
Contract liabilities 671 680
Accounts receivable, gross 1,500 1,600
Allowance for doubtful accounts receivable 99 102
Disposal Group, Held-for-sale, Not Discontinued Operations    
Capitalized Contract Cost [Line Items]    
Customer receivables 260 288
Contract assets 9 9
Contract liabilities $ 154 $ 161
v3.22.1
Revenue Recognition - Remaining Performance Obligation (Details)
$ in Billions
Mar. 31, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 5.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 76.00%
Remaining performance obligation, satisfaction period 2 years 9 months
v3.22.1
Revenue Recognition - Capitalized Contract Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Acquisition Costs    
Capitalized Contract Cost [Roll Forward]    
Beginning of period balance $ 222 $ 289
Costs incurred 43 44
Amortization (52) (54)
Change in contract costs held for sale 2 0
End of period balance 215 279
Acquisition Costs | Held-for-sale    
Capitalized Contract Cost [Roll Forward]    
Beginning of period balance 32  
End of period balance 34  
Fulfillment Costs    
Capitalized Contract Cost [Roll Forward]    
Beginning of period balance 186 216
Costs incurred 40 37
Amortization (39) (37)
Change in contract costs held for sale 0 0
End of period balance 187 $ 216
Fulfillment Costs | Held-for-sale    
Capitalized Contract Cost [Roll Forward]    
Beginning of period balance 32  
End of period balance $ 32  
v3.22.1
Credit Losses on Financial Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance at December 31, 2021 $ 114  
Provision for expected losses 25  
Write-offs charged against the allowance (35)  
Recoveries collected 4  
Change in allowance in assets held for sale 3  
Ending balance at March 21, 2022 111  
Disposal Group, Held-for-sale, Not Discontinued Operations    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for doubtful accounts 21 $ 24
Business    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance at December 31, 2021 88  
Provision for expected losses 8  
Write-offs charged against the allowance (13)  
Recoveries collected 3  
Change in allowance in assets held for sale (1)  
Ending balance at March 21, 2022 85  
Mass Markets    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance at December 31, 2021 26  
Provision for expected losses 17  
Write-offs charged against the allowance (22)  
Recoveries collected 1  
Change in allowance in assets held for sale 4  
Ending balance at March 21, 2022 $ 26  
v3.22.1
Long-Term Debt and Credit Facilities - Schedule of Long Term Debt (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Long-term Debt and Credit Facilities      
Finance lease and other obligations $ 343 $ 347  
Unamortized premiums, net 20 21  
Unamortized debt issuance costs (213) (220)  
Total long-term debt 28,553 28,982  
Less current maturities (156) (1,554)  
Long-term debt, excluding current maturities 28,397 27,428  
Disposal Group, Held-for-sale, Not Discontinued Operations      
Long-term Debt and Credit Facilities      
Long-term debt, net of discounts 1,387 1,377  
Lumen Technologies, Inc. | Credit facility | Revolving Credit Facility      
Long-term Debt and Credit Facilities      
Long-term debt, gross $ 1,200 $ 200  
Long-term debt, weighted average interest rate 2.387% 2.103%  
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 $ 1,035 $ 1,050  
Long-term debt, weighted average interest rate 2.457% 2.104%  
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 $ 296 $ 300  
Long-term debt, weighted average interest rate 2.457% 2.104%  
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 $ 4,888 $ 4,900  
Long-term debt, weighted average interest rate 2.707% 2.354%  
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 2023-2042      
Long-term Debt and Credit Facilities      
Long-term debt, gross $ 7,014 8,414  
Lumen Technologies, Inc. | Senior notes | Senior Notes Maturing 2023-2042 | Minimum      
Long-term Debt and Credit Facilities      
Stated interest rate 4.50%    
Lumen Technologies, Inc. | Senior notes | Senior Notes Maturing 2023-2042 | 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 2.207% 1.854%  
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 subsidiaries | Senior notes      
Long-term Debt and Credit Facilities      
Stated interest rate 7.995% 7.995%  
Embarq Corporation subsidiaries | Senior notes | Disposal Group, Held-for-sale, Not Discontinued Operations      
Long-term Debt and Credit Facilities      
Long-term debt, net of discounts $ 1,400 $ 1,400 $ 1,400
Embarq Corporation subsidiaries | First mortgage bonds      
Long-term Debt and Credit Facilities      
Long-term debt, gross $ 138 138  
Embarq Corporation subsidiaries | First mortgage bonds | Minimum      
Long-term Debt and Credit Facilities      
Stated interest rate 7.125%    
Embarq Corporation subsidiaries | 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 2.46% 2.11%  
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 $ 1,986 $ 1,986  
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 $ 255 $ 255  
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%    
v3.22.1
Long-Term Debt and Credit Facilities - Schedule of Maturities of Long Term Debt (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Long-term Debt, Fiscal Year Maturity  
2022 (remaining nine months) $ 150
2023 977
2024 1,158
2025 4,108
2026 2,062
2027 and thereafter 20,291
Total long-term debt 28,746
Disposal Group, Held-for-sale, Not Discontinued Operations  
Long-term Debt, Fiscal Year Maturity  
Total long-term debt $ 1,500
v3.22.1
Long-Term Debt and Credit Facilities - Additional Information (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Senior notes  
Long-term Debt and Credit Facilities  
Repayments of debt $ 1,400
Stated interest rate 5.80%
Revolving Credit Facility  
Long-term Debt and Credit Facilities  
Borrowings $ 1,400
Repayments of lines of credit $ 350
v3.22.1
Severance (Details) - Severance
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Restructuring reserve  
Balance at the beginning of the period $ 36
Accrued to expense 2
Payments, net (16)
Balance at the end of the period $ 22
v3.22.1
Employee Benefits - Additional Information (Details) - Pension Plans - New Lumen Pension Plan
$ in Billions
Jan. 01, 2022
USD ($)
Employee
Employee Benefits  
Number of active participants (in employees) | Employee 2,500
Number of other participants (in employees) | Employee 19,000
Benefit obligation | $ $ 2.5
Plan assets | $ $ 2.2
v3.22.1
Employee Benefits - Schedule of Net Periodic Benefit (Income) Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Pension Plans    
Components of net periodic (benefit) expense    
Service cost $ 12 $ 13
Interest cost 52 50
Expected return on plan assets (100) (138)
Recognition of prior service credit (3) (2)
Recognition of actuarial loss 37 49
Net periodic benefit expense (income) (2) (28)
Post-Retirement Benefit Plans    
Components of net periodic (benefit) expense    
Service cost 3 4
Interest cost 15 12
Recognition of prior service credit 2 4
Recognition of actuarial loss 0 1
Net periodic benefit expense (income) $ 20 $ 21
v3.22.1
Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income (Numerator)    
Net income $ 599 $ 475
Net income applicable to common stock for computing basic earnings per common share 599 475
Net income as adjusted for purposes of computing diluted earnings per common share $ 599 $ 475
Weighted-average number of shares:    
Outstanding during period (in shares) 1,027,217 1,100,350
Non-vested restricted stock (in shares) (18,787) (17,876)
Weighted average shares outstanding for computing basic earnings per common share (in shares) 1,008,430 1,082,474
Incremental common shares attributable to dilutive securities:    
Shares issuable under convertible securities (in shares) 10 10
Shares issuable under incentive compensation plans (in shares) 6,775 9,102
Number of shares as adjusted for purposes of computing diluted earnings per common share (in shares) 1,015,215 1,091,586
Basic earnings per common share (in dollars per share) $ 0.59 $ 0.44
Diluted earnings per common share (in dollars per share) $ 0.59 $ 0.44
Number of shares of common stock excluded from the computation of diluted earnings per share (less than) (in shares) 8,200 1,000
v3.22.1
Fair Value of Financial Instruments (Details) - Fair Value Measurements Determined on a Nonrecurring Basis - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Fair value disclosure    
Gain on investment $ 66  
Fair Value Inputs, Level 2 | Carrying Amount    
Fair value disclosure    
Long-term debt, excluding finance lease and other obligations 28,210 $ 28,635
Interest rate swap contracts (see Note 11) 3 25
Fair Value Inputs, Level 2 | Carrying Amount | Disposal Group, Held-for-sale, Not Discontinued Operations    
Fair value disclosure    
Long-term debt, excluding finance lease and other obligations 1,400 1,400
Fair Value Inputs, Level 2 | Fair Value    
Fair value disclosure    
Long-term debt, excluding finance lease and other obligations 27,405 29,221
Interest rate swap contracts (see Note 11) 3 25
Fair Value Inputs, Level 2 | Fair Value | Disposal Group, Held-for-sale, Not Discontinued Operations    
Fair value disclosure    
Long-term debt, excluding finance lease and other obligations 1,400 1,600
Fair Value, Inputs, Level 1 | Fair Value    
Fair value disclosure    
Investment in limited partnership $ 365 $ 299
v3.22.1
Derivative Financial Instruments - Fair Value of Derivatives (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value $ 3 $ 25
v3.22.1
Derivative Financial Instruments - Reclassification from AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]    
Realized losses reclassified from AOCI $ 17 $ 15
Interest Rate Swap | Designated as Hedging Instrument    
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]    
Realized losses reclassified from AOCI $ 22 $ 20
v3.22.1
Derivative Financial Instruments - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2019
Interest Rate Swap    
Derivative [Line Items]    
Reclassification in next twelve months $ 3  
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging    
Derivative [Line Items]    
Notional amount   $ 4,000
Expired Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging    
Derivative [Line Items]    
Notional amount $ 2,500  
v3.22.1
Segment Information - Additional Information (Details)
 3 Months Ended
Mar. 31, 2022
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
v3.22.1
Segment Information - Segment Results and Operating Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Operating revenues by products and services    
Revenue $ 4,676 $ 5,029
Cost of services and products 1,985 2,136
Selling, general and administrative 800 756
Less: stock-based compensation (23) (20)
Total expense 2,762 2,872
Total adjusted EBITDA 1,914 2,157
Operating Segments    
Operating revenues by products and services    
Revenue 4,676 5,029
Cost of services and products 847 927
Selling, general and administrative 432 438
Less: stock-based compensation 0 0
Total expense 1,279 1,365
Total adjusted EBITDA 3,397 3,664
Operating Segments | Business    
Operating revenues by products and services    
Revenue 3,401 3,595
Cost of services and products 815 884
Selling, general and administrative 298 304
Less: stock-based compensation 0 0
Total expense 1,113 1,188
Total adjusted EBITDA 2,288 2,407
Operating Segments | Mass Markets    
Operating revenues by products and services    
Revenue 1,275 1,434
Cost of services and products 32 43
Selling, general and administrative 134 134
Less: stock-based compensation 0 0
Total expense 166 177
Total adjusted EBITDA 1,109 1,257
Segment Reconciling Items    
Operating revenues by products and services    
Revenue 0 0
Cost of services and products 1,138 1,209
Selling, general and administrative 368 318
Less: stock-based compensation (23) (20)
Total expense 1,483 1,507
Total adjusted EBITDA $ (1,483) $ (1,507)
v3.22.1
Segment Information - Reconciliation (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Segment Reporting Information [Line Items]    
Total adjusted EBITDA $ 1,914 $ 2,157
Depreciation and amortization (808) (1,150)
OPERATING INCOME 1,083 987
Total other expense, net (282) (355)
INCOME BEFORE INCOME TAXES 801 632
Income tax expense 202 157
NET INCOME 599 475
Operating Segments    
Segment Reporting Information [Line Items]    
Total adjusted EBITDA 3,397 3,664
Segment Reconciling Items    
Segment Reporting Information [Line Items]    
Total adjusted EBITDA (1,483) (1,507)
Depreciation and amortization (808) (1,150)
Operations and other expenses (1,483) (1,507)
Stock-based compensation (23) (20)
OPERATING INCOME 1,083 987
Total other expense, net $ (282) $ (355)
v3.22.1
Commitments and Contingencies and Other Items (Details)
 1 Months Ended
Jun. 30, 2021
USD ($)
lawsuit
Feb. 28, 2017
USD ($)
patent
lawsuit
Mar. 31, 2022
USD ($)
Dec. 31, 2005
USD ($)
subsidiary
Loss Contingencies        
Patents allegedly infringed | patent   1    
Estimate of possible loss     $ 102,000,000  
Unfavorable Regulatory Action        
Loss Contingencies        
Estimate of possible loss     300,000  
Missouri Municipalities | Judicial ruling        
Loss Contingencies        
Number of pending lawsuits | lawsuit 1 1    
Litigation settlement amount   $ 4,000,000    
Columbia and Joplin Municipalities | Judicial ruling        
Loss Contingencies        
Litigation settlement amount $ 55,000,000      
Peruvian Tax Litigation | Pending litigation        
Loss Contingencies        
Number of subsidiaries issues with tax assessment | subsidiary       1
Loss contingency, asserted claim       $ 26,000,000
Brazilian Tax Claims | Pending litigation | Maximum        
Loss Contingencies        
Loss contingency, range of possible loss, portion not accrued     $ 51,000,000  
v3.22.1
Other Financial Information (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Prepaid Expenses and Other Current Assets [Abstract]    
Prepaid expenses $ 410 $ 295
Income tax receivable 17 22
Materials, supplies and inventory 128 96
Contract assets 45 45
Note receivable 56 56
Receivable for sale of land 49 56
Other 11 11
Total other current assets 962 829
Other current assets, held for sale 123 126
Acquisition Costs    
Prepaid Expenses and Other Current Assets [Abstract]    
Contract costs 139 142
Fulfillment Costs    
Prepaid Expenses and Other Current Assets [Abstract]    
Contract costs $ 107 $ 106
v3.22.1
Accumulated Other Comprehensive Loss - AOCI Activity (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period $ 11,840  
Other comprehensive income before reclassifications 67 $ (86)
Amounts reclassified from accumulated other comprehensive loss 44 54
Net current-period other comprehensive income (loss) 111 (32)
Balance at end of period 12,282 11,303
Defined Benefit Plan | Pension Plans    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (1,577) (2,197)
Other comprehensive income before reclassifications 0 0
Amounts reclassified from accumulated other comprehensive loss 26 35
Net current-period other comprehensive income (loss) 26 35
Balance at end of period (1,551) (2,162)
Defined Benefit Plan | Post-Retirement Benefit Plans    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (164) (272)
Other comprehensive income before reclassifications 0 0
Amounts reclassified from accumulated other comprehensive loss 1 4
Net current-period other comprehensive income (loss) 1 4
Balance at end of period (163) (268)
Foreign Currency Translation Adjustment and Other    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (400) (265)
Other comprehensive income before reclassifications 67 (86)
Amounts reclassified from accumulated other comprehensive loss 0 0
Net current-period other comprehensive income (loss) 67 (86)
Balance at end of period (333) (351)
Interest Rate Swap    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (17) (79)
Other comprehensive income before reclassifications 0 0
Amounts reclassified from accumulated other comprehensive loss 17 15
Net current-period other comprehensive income (loss) 17 15
Balance at end of period 0 (64)
Accumulated Other Comprehensive Loss    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of period (2,158) (2,813)
Net current-period other comprehensive income (loss) 111 (32)
Balance at end of period $ (2,047) $ (2,845)
v3.22.1
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Reclassifications out of accumulated other comprehensive income loss by component    
Interest expense $ 352 $ 389
Income tax expense (202) (157)
Other income, net 70 34
Total before tax 801 632
Net of tax 599 475
Decrease (Increase) in Net Income | Interest rate swaps    
Reclassifications out of accumulated other comprehensive income loss by component    
Interest expense 22 20
Income tax expense (5) (5)
Net of tax 17 15
Decrease (Increase) in Net Income | Net actuarial loss    
Reclassifications out of accumulated other comprehensive income loss by component    
Other income, net 37 50
Decrease (Increase) in Net Income | Prior service cost    
Reclassifications out of accumulated other comprehensive income loss by component    
Other income, net (1) 2
Decrease (Increase) in Net Income | Defined benefit plan    
Reclassifications out of accumulated other comprehensive income loss by component    
Income tax expense (9) (13)
Total before tax 36 52
Net of tax $ 27 $ 39
v3.22.1
Labor Union Contracts (Details) - Unionized employees concentration risk
 3 Months Ended
Mar. 31, 2022
Total number of employees  
Concentration risk  
Concentration risk, percent 22.00%
Workforce subject to collective bargaining arrangements that expired  
Concentration risk  
Concentration risk, percent 2.00%
Workforce subject to collective bargaining arrangements expiring within one year  
Concentration risk  
Concentration risk, percent 11.00%