LUMEN TECHNOLOGIES, INC., 10-Q filed on 8/1/2023
Quarterly Report
v3.23.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2023
Jul. 28, 2023
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
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   1,007,986,100
Entity Central Index Key 0000018926  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Common Stock    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $1.00 per share  
Trading Symbol LUMN  
Security Exchange Name NYSE  
Preferred Stock    
Document Information [Line Items]    
Title of 12(b) Security Preferred Stock Purchase Rights  
Security Exchange Name NYSE  
Preferred Stock - No Trading Symbol true  
v3.23.2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
OPERATING REVENUE $ 3,661 $ 4,612 $ 7,399 $ 9,288
OPERATING EXPENSES        
Cost of services and products (exclusive of depreciation and amortization) 1,740 2,058 3,557 4,043
Selling, general and administrative 790 815 1,511 1,615
Loss on disposal group held for sale 13 0 90 0
Depreciation and amortization 746 827 1,479 1,635
Goodwill impairment 8,793 0 8,793 0
Total operating expenses 12,082 3,700 15,430 7,293
OPERATING (LOSS) INCOME (8,421) 912 (8,031) 1,995
OTHER (EXPENSE) INCOME        
Interest expense (294) (337) (573) (689)
Net gain on early retirement of debt (Note 6) 9 0 618 0
Other income (expense), net 16 (122) (24) (52)
Total other (expense) income, net (269) (459) 21 (741)
(LOSS) INCOME BEFORE INCOME TAXES (8,690) 453 (8,010) 1,254
Income tax expense 46 109 215 311
NET (LOSS) INCOME $ (8,736) $ 344 $ (8,225) $ 943
BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE        
BASIC (in dollars per share) $ (8.88) $ 0.34 $ (8.37) $ 0.93
DILUTED (in dollars per share) $ (8.88) $ 0.34 $ (8.37) $ 0.93
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING        
BASIC (in shares) 983,453 1,012,943 982,505 1,010,686
DILUTED (in shares) 983,453 1,016,620 982,505 1,015,917
v3.23.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
NET (LOSS) INCOME $ (8,736) $ 344 $ (8,225) $ 943
Items related to employee benefit plans:        
Change in net actuarial loss, net of $(5), $(8), $(10) and $(17) tax 16 22 31 50
Change in net prior service cost, net of $1, $—, $2 and $— tax (2) 0 (5) (1)
Reclassification of realized loss on interest rate swaps to net income, net of $ —, $—, $— and $(5) tax 0 0 0 17
Foreign currency translation adjustment, net of $(2), $32, $(8) and $42 tax 2 (192) 20 (125)
Other comprehensive income (loss) 16 (170) 46 (59)
COMPREHENSIVE (LOSS) INCOME $ (8,720) $ 174 $ (8,179) $ 884
v3.23.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Change in net actuarial loss, tax $ (5) $ (8) $ (10) $ (17)
Change in net prior service cost, tax 1 0 2 0
Reclassification of realized loss on interest rate swaps to net income, tax 0 0 0 (5)
Foreign currency translation adjustment and other, tax $ (2) $ 32 $ (8) $ 42
v3.23.2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
CURRENT ASSETS    
Cash and cash equivalents $ 411 $ 1,251
Accounts receivable, less allowance of $78 and $85 1,473 1,477
Assets held for sale 2,005 1,889
Other 984 803
Total current assets 4,873 5,420
Property, plant and equipment, net of accumulated depreciation of $20,529 and $19,886 19,432 19,166
GOODWILL AND OTHER ASSETS    
Goodwill 3,864 12,657
Other intangible assets, net 5,899 6,166
Other, net 2,100 2,172
Total goodwill and other assets 11,863 20,995
TOTAL ASSETS 36,168 45,581
CURRENT LIABILITIES    
Current maturities of long-term debt 154 154
Accounts payable 1,171 950
Accrued expenses and other liabilities    
Salaries and benefits 605 692
Income and other taxes 234 1,158
Current operating lease liabilities 323 344
Interest 176 181
Other 177 277
Liabilities held for sale 496 451
Current portion of deferred revenue 627 596
Total current liabilities 3,963 4,803
LONG-TERM DEBT 19,899 20,418
DEFERRED CREDITS AND OTHER LIABILITIES    
Deferred income taxes, net 3,204 3,163
Benefit plan obligations, net 2,335 2,391
Deferred revenue 1,850 1,758
Other 2,633 2,611
Total deferred credits and other liabilities 10,022 9,923
COMMITMENTS AND CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY    
Preferred stock—non-redeemable, $25.00 par value, authorized 2,000 and 2,000 shares, issued and outstanding 7 and 7 shares 0 0
Common stock, $1.00 par value, authorized 2,200,000 and 2,200,000 shares, issued and outstanding 1,008,084 and 1,001,688 shares 1,008 1,002
Additional paid-in capital 18,100 18,080
Accumulated other comprehensive loss (1,053) (1,099)
Accumulated deficit (15,771) (7,546)
Total stockholders' equity 2,284 10,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 36,168 $ 45,581
v3.23.2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
shares in Thousands, $ in Millions
Jun. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Accounts receivable, allowance $ 78 $ 85
Accumulated depreciation $ 20,529 $ 19,886
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) 1,008,084 1,001,688
Common stock, shares outstanding (in shares) 1,008,084 1,001,688
v3.23.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
OPERATING ACTIVITIES          
Net (loss) income $ (8,736) $ 344 $ (8,225) $ 943  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:          
Depreciation and amortization     1,479 1,635  
Loss on disposal group held for sale 13 0 90 0  
Goodwill impairment     8,793 0  
Deferred income taxes     46 249  
Provision for uncollectible accounts     47 56  
Net gain on early retirement of debt     (618) 0  
Unrealized loss on investments     81 71  
Stock-based compensation     23 48  
Changes in current assets and liabilities:          
Accounts receivable     (36) 32  
Accounts payable     (11) 79  
Accrued income and other taxes     (1,011) 13  
Other current assets and liabilities, net     (330) (430)  
Retirement benefits     (16) (86)  
Changes in other noncurrent assets and liabilities, net     132 65  
Other, net     51 96  
Net cash provided by operating activities     495 2,771  
INVESTING ACTIVITIES          
Capital expenditures     (1,436) (1,338)  
Proceeds from sale of property, plant and equipment, and other assets     26 65  
Other, net     5 3  
Net cash used in investing activities     (1,405) (1,270)  
FINANCING ACTIVITIES          
Payments of long-term debt     (100) (1,532)  
Net proceeds from revolving line of credit     200 600  
Dividends paid     (9) (525)  
Other, net     (19) (32)  
Net cash provided by (used in) financing activities     72 (1,489)  
Net (decrease) increase in cash, cash equivalents and restricted cash     (838) 12  
Cash, cash equivalents and restricted cash at beginning of period     1,307 409 $ 409
Cash, cash equivalents and restricted cash at end of period 469 421 469 421 1,307
Supplemental cash flow information:          
Income taxes paid, net     (1,270) (58)  
Interest paid (net of capitalized interest of $45 and $32)     (561) (699)  
Supplemental noncash information regarding financing activities:          
Cancellation of senior unsecured notes as part of exchange offers (Note 6)     (1,554) 0  
Issuance of senior secured notes as part of exchange offers (Note 6)     924 0  
Cash, cash equivalents and restricted cash:          
Cash and cash equivalents 411 360 411 360 1,251
Cash and cash equivalents and restricted cash included in Assets held for sale 47 48 47 48  
Restricted cash included in Other current assets 0 1 0 1  
Restricted cash included in Other, net noncurrent assets 11 12 11 12  
Total $ 469 $ 421 $ 469 $ 421 $ 1,307
v3.23.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Statement of Cash Flows [Abstract]    
Capitalized interest $ 45 $ 32
v3.23.2
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, 2021   $ 1,024 $ 18,972 $ (2,158) $ (5,998)
Increase (Decrease) in Stockholders' Equity          
Issuance of common stock through incentive and benefit plans   8      
Shares withheld to satisfy tax withholdings     (29)    
Stock-based compensation     48    
Dividends declared     (532)    
Other     0    
Other comprehensive income (loss) $ (59)     (59)  
Net (loss) income 943       943
Balance at end of period at Jun. 30, 2022 $ 12,219 1,032 18,459 (2,217) (5,055)
Increase (Decrease) in Stockholders' Equity          
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.50        
Balance at beginning of period at Mar. 31, 2022   1,033 18,695 (2,047) (5,399)
Increase (Decrease) in Stockholders' Equity          
Issuance of common stock through incentive and benefit plans   (1)      
Shares withheld to satisfy tax withholdings     (1)    
Stock-based compensation     25    
Dividends declared     (260)    
Other     0    
Other comprehensive income (loss) $ (170)     (170)  
Net (loss) income 344       344
Balance at end of period at Jun. 30, 2022 $ 12,219 1,032 18,459 (2,217) (5,055)
Increase (Decrease) in Stockholders' Equity          
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0.25        
Balance at beginning of period at Dec. 31, 2022 $ 10,437 1,002 18,080 (1,099) (7,546)
Increase (Decrease) in Stockholders' Equity          
Issuance of common stock through incentive and benefit plans   6      
Shares withheld to satisfy tax withholdings     (4)    
Stock-based compensation     23    
Dividends declared     0    
Other     1    
Other comprehensive income (loss) 46     46  
Net (loss) income (8,225)       (8,225)
Balance at end of period at Jun. 30, 2023 $ 2,284 1,008 18,100 (1,053) (15,771)
Increase (Decrease) in Stockholders' Equity          
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0        
Balance at beginning of period at Mar. 31, 2023   1,005 18,094 (1,069) (7,035)
Increase (Decrease) in Stockholders' Equity          
Issuance of common stock through incentive and benefit plans   3      
Shares withheld to satisfy tax withholdings     0    
Stock-based compensation     9    
Dividends declared     0    
Other     (3)    
Other comprehensive income (loss) $ 16     16  
Net (loss) income (8,736)       (8,736)
Balance at end of period at Jun. 30, 2023 $ 2,284 $ 1,008 $ 18,100 $ (1,053) $ (15,771)
Increase (Decrease) in Stockholders' Equity          
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) $ 0        
v3.23.2
Background
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background Background
General

We are an international facilities-based technology and communications company focused on providing our business and mass markets customers with a broad array of integrated products and services necessary to fully participate in our ever-evolving digital world. We operate one of the world’s most interconnected networks. Our platform empowers our customers to swiftly adjust digital programs securely to meet immediate demands, create efficiencies, accelerate market access and reduce costs - allowing customers to rapidly evolve their IT programs to address dynamic changes. Our specific products and services are detailed in Note 4—Revenue Recognition.

Basis of Presentation

Our consolidated balance sheet as of December 31, 2022, 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 six months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated.

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

We reclassified certain prior period amounts to conform to the current period presentation, including the recategorization of our Business revenue by product category and sales channel in our segment reporting. See Note 11—Segment Information for additional information. These changes had no impact on total operating revenue, total operating expenses or net (loss) income for any period.

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

There were no book overdrafts included in accounts payable at June 30, 2023 or December 31, 2022.
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, 2022.

Recently Adopted Accounting Pronouncements

Supplier Finance Programs

On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2022-04, “Liabilities-Supplier Finance Program (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” (“ASU 2022-04”). These amendments require that a company that uses a supplier finance program in connection with the purchase of goods or services disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, program activity during the period, changes from period to period and potential magnitude of program transactions. The adoption of ASU 2022-04 did not have a material impact to our consolidated financial statements.

Credit Losses

On January 1, 2023, we adopted ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures” (“ASU 2022-02”). The ASU eliminates the TDR recognition and measurement guidance, enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The adoption of ASU 2022-02 did not have any impact to our consolidated financial statements.

Derivatives and Hedging

On January 1, 2023, we adopted 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. The adoption of ASU 2022-01 did not have any impact to our consolidated financial statements.

Business Combinations

On January 1, 2023, we adopted ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The adoption of ASU 2021-08 did not have any impact to our consolidated financial statements.

Government Assistance

On January 1, 2022, we adopted ASU 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). This ASU requires business entities to disclose information about certain types of government assistance they receive. The ASU only impacts annual financial statement note disclosures. 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) provides guidance with respect to net investments by lessors under operating leases and other related topics. The adoption of ASU 2021-05 did not have a material impact to our consolidated financial statements.
Recently Issued Accounting Pronouncements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-02, “Investments-Equity method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 will become effective for us in the first quarter of fiscal 2024 and early adoption is permitted. As of June 30, 2023, we do not expect ASU 2023-02 will have an impact to our consolidated financial statements.

In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” (“ASU 2023-01”). These amendments require all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 will become effective for us in the first quarter of fiscal 2024 and early adoption is permitted. As of June 30, 2023, we do not expect ASU 2023-01 will have an impact to our consolidated financial statements.
In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). These amendments clarify that a contractual restriction on the sales of an investment in an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 will become effective for us in the first quarter of fiscal 2024 and early adoption is permitted. As of June 30, 2023, we do not expect ASU 2022-03 will have an impact to our consolidated financial statements.
v3.23.2
Planned Divestiture of the EMEA Business
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Planned Divestiture of the EMEA Business Planned Divestiture of the EMEA Business
On November 2, 2022, affiliates of Level 3 Parent, LLC, an indirect wholly-owned subsidiary of Lumen Technologies, Inc., granted an option to Colt Technology Services Group Limited, a portfolio company of Fidelity Investments, to purchase certain of their operations in Europe, the Middle East and Africa (the "EMEA business"), in exchange for $1.8 billion in cash, subject to certain working capital and other purchase price adjustments. Following the completion of a French consultative process, Colt exercised its option and on February 8, 2023, the parties entered into a definitive purchase agreement, which contains various customary covenants for transactions of this type, including various indemnities. Level 3 Parent, LLC expects to close the transaction in late 2023, subject to receiving all requisite regulatory approvals in the U.S. and certain countries where the EMEA business operates, as well as the satisfaction of other customary conditions.

The actual amount of our net after-tax proceeds from this divestiture could vary substantially from the amounts we currently estimate, particularly if we experience delays in completing the transaction or if any of our other assumptions prove to be incorrect.

We do not believe this divestiture represents a strategic shift for Lumen. Therefore, the planned divestiture of the EMEA business does not meet the criteria to be classified as discontinued operations. As a result, we will continue to report our operating results for the EMEA business (the "disposal group") in our consolidated operating results until the transaction is closed.
As of June 30, 2023 in the accompanying consolidated balance sheet, the assets and liabilities of our EMEA business are classified as held for sale and measured at the lower of (i) the carrying value when we classified the disposal group as held for sale and (ii) the fair value of the disposal group, less costs to sell. Effective with the designation of the disposal group as held for sale on November 2, 2022, 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 $72 million and $144 million of depreciation, intangible amortization, and amortization of right-of-use assets for the three and six months ended June 30, 2023, respectively, if the EMEA business did not meet the held for sale criteria.

The classification of the EMEA business as held for sale was considered an event or change in circumstance which requires an assessment of the goodwill of the disposal group for impairment each reporting period until disposal. We performed a pre-classification and post-classification goodwill impairment test of the disposal group as described further in Note 3—Goodwill, Customer Relationships and Other Intangible Assets in our Annual Report on Form 10-K for the year ended December 31, 2022. As a result of our impairment tests, we determined the EMEA business disposal group was impaired, resulting in a non-cash, non-tax-deductible goodwill impairment charge of $43 million in the fourth quarter of 2022. We evaluated 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, and recorded an estimated loss on disposal of $660 million during the year ended December 31, 2022 in the consolidated statement of operations and a valuation allowance included in assets held for sale on the consolidated balance sheet. As a result of our evaluation of the recoverability of the carrying value of the EMEA assets and liabilities held for sale relative to the agreed upon sales price, adjusted for costs to sell, as of June 30, 2023, we recorded a $13 million and $90 million estimated loss on disposal during the three and six months ended June 30, 2023, respectively, and adjusted the valuation allowance by the same amounts. In future quarters, through the closing date, we will conduct similar evaluations and adjust the valuation allowance for the EMEA assets held for sale, as necessary.
The principal components of the held for sale assets and liabilities of the EMEA business as of the dates below are as follows:

June 30, 2023December 31, 2022
(Dollars in millions)
Assets held for sale
Cash and cash equivalents$46 43 
Accounts receivable, less allowance of $5 and $5
77 76 
Other current assets63 59 
Property, plant and equipment, net of accumulated depreciation of $1,059 and $1,033
1,986 1,873 
Customer relationships and other intangible assets, net106 100 
Operating lease assets197 156 
Valuation allowance on assets held for sale(1)
(750)(660)
Deferred tax assets155 138 
Other non-current assets39 38 
Total assets held for sale$1,919 1,823 
Liabilities held for sale
Accounts payable$67 78 
Salaries and benefits17 23 
Current portion of deferred revenue39 28 
Current operating lease liabilities44 33 
Other current liabilities34 28 
Deferred income taxes52 38 
Asset retirement obligations31 30 
Deferred revenue, non-current103 85 
Operating lease liabilities, non-current104 103 
Total liabilities held for sale$491 446 
______________________________________________________________________ 
(1)Includes the impact of $359 million and $365 million as of June 30, 2023 and December 31, 2022, respectively, primarily related to loss on foreign currency translation, expected to be reclassified out of accumulated other comprehensive loss upon close of the sale.
v3.23.2
Goodwill, Customer Relationships and Other Intangible Assets
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Customer Relationships and Other Intangible Assets Goodwill, Customer Relationships and Other Intangible Assets
Goodwill, customer relationships and other intangible assets consisted of the following:

June 30, 2023(1)
December 31, 2022(1)
(Dollars in millions)
Goodwill$3,864 12,657 
Indefinite-lived intangible assets$9 9 
Other intangible assets subject to amortization: 
Customer relationships, less accumulated amortization of $3,931 and $3,606
4,246 4,574 
Capitalized software, less accumulated amortization of $3,869 and $3,895(2)
1,551 1,482 
Trade names, patents and other, less accumulated amortization of $65 and $188(2)
93 101 
Total other intangible assets, net$5,899 6,166 
______________________________________________________________________
(1)    These values exclude assets classified as held for sale.
(2)    Certain capitalized software with a gross carrying value of $183 million and trade names with a gross carrying value of $130 million became fully amortized during 2022 and were retired during the first quarter of 2023.

As of June 30, 2023, the gross carrying amount of goodwill, customer relationships, indefinite-lived and other intangible assets was $17.6 billion.

Our goodwill was derived from numerous acquisitions where the purchase price exceeded the fair value of the net assets acquired. We report our results within two segments: Business and Mass Markets. See Note 11—Segment Information for more information on these segments.

We are required to 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.

As of June 30, 2023, we have three reporting units for goodwill impairment testing, which are (i) Mass Markets, (ii) North America Business and (iii) Asia Pacific region. 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 charge 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 and markets are comparable to ours.
Second Quarter 2023 Goodwill Impairment Analysis

When we performed our October 31, 2022 annual impairment test, we estimated the fair value of our reporting units by considering both a market approach and a discounted cash flow method.

The sustained decline in our share price during the second quarter of 2023 was considered a triggering event requiring evaluation of goodwill impairment. Given the continued erosion in our market capitalization, primarily due to the prevailing macroeconomic conditions and market sentiments, we determined our quantitative impairment analysis would estimate the fair value of our reporting units using only the market approach. Applying this approach, we utilized company comparisons and analyst reports within the telecommunications industry which supported a range of fair values derived from annualized revenue and EBITDA multiples between 1.5x and 4.3x and 4.6x and 10.5x, respectively. The revenue and EBITDA multiples used in the quantitative impairment analysis for each of our reporting units were below these comparable market multiples. The estimated fair values of the reporting units determined in connection with our impairment analysis in the second quarter of 2023 resulted in no control premium, which was determined to be reasonable based on our market capitalization relative to recent transactions. For the three months ended June 30, 2023, based on our assessments performed with respect to the reporting units as described above, we concluded the estimated fair value of certain of our reporting units was less than their carrying value of equity. As a result, we recorded a non-cash, non-tax-deductible goodwill impairment charge of $8.8 billion for the three months ended June 30, 2023.

The market approach that we used in the quarter ended June 30, 2023 incorporated estimates and assumptions related to the forecasted results for the remainder of the year, including revenues, expenses, and the achievement of certain strategic initiatives. In developing the market multiples applicable for each reporting unit, we considered observed trends of our industry participants. Our assessment included many factors that required significant judgment. Alternative interpretations of these factors could have resulted in different conclusions regarding the size of our impairments.
The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2022 through June 30, 2023.

BusinessMass MarketsTotal
(Dollars in Millions)
As of December 31, 2022(1)
$7,906 4,751 12,657 
Impairment(6,580)(2,213)(8,793)
As of June 30, 2023(1)
$1,326 2,538 3,864 
______________________________________________________________________
(1)Goodwill at June 30, 2023 and December 31, 2022 is net of accumulated impairment losses of $19.8 billion and $11.0 billion, respectively.

Total amortization expense for finite-lived intangible assets for the three months ended June 30, 2023 and 2022 totaled $263 million and $277 million, respectively, and for the six months ended June 30, 2023 and 2022 totaled $523 million and $551 million, respectively.

We estimate that amortization expense for finite-lived intangible assets for the years ending December 31, 2023 through 2027 will be as provided in the table below. As a result of classifying our EMEA business as held for sale on our June 30, 2023 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of the business to be divested. See Note 2—Planned Divestiture of the EMEA Business for more information.

 (Dollars in millions)
2023 (remaining six months)$490 
2024904 
2025843 
2026799 
2027719 
v3.23.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2023
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:

•Grow, which includes products and services that we anticipate will grow, including our dark fiber, Edge Cloud services, IP, managed security, software-defined wide area networks ("SD WAN"), secure access service edge ("SASE"), Unified Communications and Collaboration ("UC&C") and wavelengths services;

•Nurture, which includes our more mature offerings, including ethernet and VPN data networks services;

•Harvest, which includes our legacy services managed for cash flow, including Time Division Multiplexing ("TDM") voice, private line and other legacy services; and

•Other, which includes equipment sales, IT solutions and other services.

We categorize our products and services revenue among the following categories for the Mass Markets segment:

•Fiber Broadband, under which we provide high speed broadband services to residential and small business customers utilizing our fiber-based network infrastructure;

•Other Broadband, under which we provide primarily lower speed broadband services to residential and small business customers utilizing our copper-based network infrastructure; and

•Voice and Other, under which we derive revenues from (i) providing local and long-distance voice services, professional services, and other ancillary services, and (ii) federal broadband and state support programs.

Reconciliation of Total Revenue to Revenue from Contracts with Customers

The following tables provide total revenue by segment, sales channel and product category. They also provide 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. The amounts in the tables below include revenue for the Latin American and ILEC businesses prior to their sales on August 1, 2022 and October 3, 2022, respectively. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these divestitures.
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
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
Large Enterprise
Grow$558 (78)480 658 (102)556 
Nurture369 — 369 444 — 444 
Harvest197 — 197 272 — 272 
Other55 (1)54 58 (1)57 
Total Large Enterprise Revenue1,179 (79)1,100 1,432 (103)1,329 
Mid-Market Enterprise
Grow202 (8)194 188 (8)180 
Nurture202 — 202 231 — 231 
Harvest94 (1)93 135 (2)133 
Other9 (1)8 8 — 8 
Total Mid-Market Enterprise Revenue507 (10)497 562 (10)552 
Public Sector
Grow118 (19)99 116 (27)89 
Nurture93 — 93 128 — 128 
Harvest95 — 95 124 (1)123 
Other108 — 108 126 (1)125 
Total Public Sector Revenue414 (19)395 494 (29)465 
Wholesale
Grow260 (62)198 240 (68)172 
Nurture205 (8)197 258 (7)251 
Harvest331 (43)288 405 (56)349 
Other1 — 1 26 — 26 
Total Wholesale Revenue797 (113)684 929 (131)798 
Business Segment by Product Category
Grow1,138 (167)971 1,202 (205)997 
Nurture869 (8)861 1,061 (7)1,054 
Harvest717 (44)673 936 (59)877 
Other173 (2)171 218 (2)216 
Total Business Segment Revenue2,897 (221)2,676 3,417 (273)3,144 
Mass Markets Segment by Product Category
Fiber Broadband157 (4)153 151 (5)146 
Other Broadband355 (32)323 597 (55)542 
Voice and Other252 (9)243 447 (20)427 
Total Mass Markets Revenue764 (45)719 1,195 (80)1,115 
Total Revenue$3,661 (266)3,395 4,612 (353)4,259 
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
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
Large Enterprise
Grow$1,108 (157)951 1,311 (205)1,106 
Nurture744 — 744 898 — 898 
Harvest404 — 404 548 — 548 
Other117 (2)115 117 (3)114 
Total Large Enterprise Revenue2,373 (159)2,214 2,874 (208)2,666 
Mid-Market Enterprise
Grow398 (15)383 373 (16)357 
Nurture413 — 413 472 — 472 
Harvest194 (2)192 275 (4)271 
Other17 (3)14 15 — 15 
Total Mid-Market Enterprise Revenue1,022 (20)1,002 1,135 (20)1,115 
Public Sector
Grow234 (38)196 231 (54)177 
Nurture199 — 199 259 — 259 
Harvest194 — 194 248 (2)246 
Other217 — 217 235 (1)234 
Total Public Sector Revenue844 (38)806 973 (57)916 
Wholesale
Grow526 (133)393 473 (135)338 
Nurture418 (14)404 525 (14)511 
Harvest664 (87)577 812 (114)698 
Other6 — 6 26 — 26 
Total Wholesale Revenue1,614 (234)1,380 1,836 (263)1,573 
Business Segment by Product Category
Grow2,266 (343)1,923 2,388 (410)1,978 
Nurture1,774 (14)1,760 2,154 (14)2,140 
Harvest1,456 (89)1,367 1,883 (120)1,763 
Other357 (5)352 393 (4)389 
Total Business Segment Revenue5,853 (451)5,402 6,818 (548)6,270 
Mass Markets Segment by Product Category
Fiber Broadband309 (8)301 296 (10)286 
Other Broadband724 (65)659 1,207 (111)1,096 
Voice and Other513 (18)495 967 (99)868 
Total Mass Markets Revenue1,546 (91)1,455 2,470 (220)2,250 
Total Revenue$7,399 (542)6,857 9,288 (768)8,520 
_____________________________________________________________________
(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 June 30, 2023 and 2022, our gross rental income was $257 million and $334 million, respectively, which represents approximately 7% of our operating revenue for both the three months ended June 30, 2023 and 2022. For the six months ended June 30, 2023 and 2022, our gross rental income was $526 million and $671 million, respectively, which represents approximately 7% of our operating revenue for both the six months ended June 30, 2023 and 2022.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts classified as held for sale, as of June 30, 2023 and December 31, 2022:

June 30, 2023December 31, 2022
 (Dollars in millions)
Customer receivables(1)
$1,425 1,424 
Contract assets(2)
27 34 
Contract liabilities(3)
710 656 
______________________________________________________________________
(1)Reflects gross customer receivables of $1.5 billion at both June 30, 2023 and December 31, 2022, net of allowance for credit losses of $67 million and $73 million, at June 30, 2023 and December 31, 2022, respectively. These amounts exclude customer receivables, net, classified as held for sale of $77 million at June 30, 2023 and $76 million at December 31, 2022 related to the EMEA business.
(2)These amounts exclude contract assets classified as held for sale of $12 million at June 30, 2023 and $16 million at December 31, 2022 related to the EMEA business.
(3)These amounts exclude contract liabilities classified as held for sale of $62 million at June 30, 2023 and $59 million at December 31, 2022 related to the EMEA business.

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 on our consolidated balance sheets. During the three and six months ended June 30, 2023, we recognized $42 million and $347 million of revenue that was included in contract liabilities of $715 million as of January 1, 2023, including contract liabilities that were classified as held for sale. During the three and six months ended June 30, 2022, we recognized $52 million and $447 million, respectively, 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.

Performance Obligations

As of June 30, 2023, we expect to recognize approximately $6.9 billion of revenue in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied. As of June 30, 2023, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2023, 2024 and thereafter was $1.6 billion, $2.0 billion and $3.3 billion, respectively.
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 EMEA business classified as held for sale.

Contract Costs

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

Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(1)(2)
$192 182 215 187 
Costs incurred29 39 41 41 
Amortization(39)(36)(49)(39)
Change in contract costs held for sale1 1 1 (1)
End of period balance(5)(6)
$183 186 208 188 

Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(3)(4)
$202 192 222 186 
Costs incurred65 79 84 81 
Amortization(80)(71)(101)(78)
Change in contract costs held for sale(4)(14)3 (1)
End of period balance(5)(6)
$183 186 208 188 
______________________________________________________________________
(1)Beginning of period balance for the three months ended June 30, 2023 excludes $11 million of acquisition costs and $15 million of fulfillment costs classified as held for sale related to the EMEA business.
(2)Beginning of period balance for the three months ended June 30, 2022 excludes $32 million of both acquisition costs and fulfillment costs classified as held for sale (related to both the Latin American business and the ILEC business, sold in the third and fourth quarters of 2022, respectively).
(3)Beginning of period balance for the six months ended June 30, 2023 excludes $6 million of acquisition costs and no fulfillment costs classified as held for sale related to the EMEA business.
(4)Beginning of period balance for the six months ended June 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $34 million and $32 million, respectively (related to both the Latin American business and the ILEC business, sold in the third and fourth quarters of 2022, respectively).
(5)End of period balance for the three and six months ended June 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.
(6)End of period balance for the three and six months ended June 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $31 million and $33 million, respectively (related to both the Latin American business and the ILEC business, sold in the third and fourth quarters of 2022, respectively).

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 36 months for mass markets customers and 33 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 noncurrent assets on our consolidated balance sheets. Deferred acquisition and fulfillment costs are assessed for impairment on a quarterly basis.
v3.23.2
Credit Losses on Financial Instruments
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Credit Losses on Financial Instruments Credit Losses on Financial Instruments
To assess our expected credit losses on financial instruments, we aggregate financial assets with similar risk characteristics to monitor their 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. We separately evaluate financial assets that do not share risk characteristics with other financial assets. 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 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 our 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 six months ended June 30, 2023:

BusinessMass MarketsTotal
(Dollars in millions)
As of December 31, 2022(1)
$57 28 85 
Provision for expected losses18 29 47 
Write-offs charged against the allowance(24)(34)(58)
Recoveries collected3 1 4 
Ending balance at June 30, 2023(1)
$54 24 78 
______________________________________________________________________
(1)As of June 30, 2023 and December 31, 2022, these amounts excluded $5 million of allowance for credit losses classified as held for sale related to the EMEA business included in the Business portfolio. See Note 2—Planned Divestiture of the EMEA Business.
v3.23.2
Long-Term Debt and Credit Facilities
 6 Months Ended
Jun. 30, 2023
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 and unamortized debt issuance costs:

Interest Rates(1)
Maturities(1)
June 30, 2023December 31, 2022
   (Dollars in millions)
Senior Secured Debt: (2)
Lumen Technologies, Inc.
Revolving Credit Facility(3)
SOFR + 2.00%
2025$200 — 
Term Loan A(4)
SOFR + 2.00%
2025962 991 
Term Loan A-1(4)
SOFR + 2.00%
2025275 283 
Term Loan B(5)
SOFR + 2.25%
20273,916 3,941 
Senior notes4.000%20271,250 1,250 
Subsidiaries:
Level 3 Financing, Inc.
Tranche B 2027 Term Loan(6)
SOFR + 1.75%
20272,411 2,411 
Senior notes
3.400% - 10.500%
2027 - 2030
2,425 1,500 
Senior Notes and Other Debt:    
Lumen Technologies, Inc.
Senior notes
4.500% - 7.650%
2025 - 2042
2,143 3,722 
Subsidiaries:
Level 3 Financing, Inc.
Senior notes
3.625% - 4.625%
2027 - 2029
3,940 3,940 
Qwest Corporation
Senior notes
6.500% - 7.750%
2025 - 2057
1,986 1,986 
Term loan(7)
SOFR + 2.50%
2027215 215 
Qwest Capital Funding, Inc.
Senior notes
6.875% - 7.750%
2028 - 2031
192 192 
Finance lease and other obligations(8)
VariousVarious299 317 
Unamortized discounts, net  (3)(7)
Unamortized debt issuance costs(158)(169)
Total long-term debt  20,053 20,572 
Less current maturities   (154)(154)
Long-term debt, excluding current maturities  $19,899 20,418 
______________________________________________________________________ 
(1)As of June 30, 2023.
(2)See Note 7—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2022 for a description of certain parent or subsidiary guarantees and liens securing this debt.
(3)Revolving Credit Facility had an interest rate of 7.262% as of June 30, 2023.
(4)Term Loans A and A-1 had interest rates of 7.217% and 6.384% as of June 30, 2023 and December 31, 2022, respectively.
(5)Term Loan B had interest rates of 7.467% and 6.634% as of June 30, 2023 and December 31, 2022, respectively.
(6)The Level 3 Tranche B 2027 Term Loan had interest rates of 6.967% and 6.134% as of June 30, 2023 and December 31, 2022, respectively.
(7)The Qwest Corporation Term Loan had interest rates of 7.717% and 6.640% as of June 30, 2023 and December 31, 2022, respectively.
(8)Excludes finance lease obligations of our EMEA business classified as held for sale.
Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of June 30, 2023 (excluding unamortized discounts, net, and unamortized debt issuance costs), maturing during the following years. As a result of classifying our EMEA business as held for sale on our June 30, 2023 consolidated balance sheet, the amounts presented below do not include maturities of the finance lease obligations of that business. See Note 2—Planned Divestiture of the EMEA Business.

 (Dollars in millions)
2023 (remaining six months)$76 
2024157 
20251,864 
2026498 
20279,386 
2028 and thereafter8,233 
Total long-term debt$20,214 

Exchange Offers and Repurchases

Pursuant to exchange offers that commenced on March 16, 2023 (the “Exchange Offers”), on March 31, 2023, Level 3 Financing, Inc. issued $915 million of its 10.500% Senior Secured Notes due 2030 (the “10.500% Notes”) in exchange for $1.535 billion of Lumen’s outstanding senior unsecured notes. On April 17, 2023, in connection with the Exchange Offers, Level 3 Financing, Inc. issued an additional $9 million of its 10.500% Notes in exchange for $19 million of Lumen's outstanding senior unsecured notes. All exchanged notes were concurrently cancelled. These transactions resulted in a net reduction in the aggregate principal amount of Lumen’s consolidated indebtedness, as of June 30, 2023, of approximately $630 million. In addition to the above described exchange offers, we repurchased $24 million aggregate principal amount of Lumen's outstanding senior unsecured notes during the first quarter of 2023. These above-described transactions resulted in an aggregate gain of $618 million during the six months ended June 30, 2023.
The following table sets forth the aggregate principal amount of each series of Lumen’s senior unsecured notes retired during the six months ended June 30, 2023, in connection with the above-described exchange transactions:

DebtPeriod of Reduction(Aggregate principal amount in millions)
5.625% Senior Notes, Series X, due 2025
Q1 2023$48 
7.200% Senior Notes, Series D, due 2025
Q1 202321 
5.125% Senior Notes due 2026
Q1 2023291 
6.875% Debentures, Series G, due 2028
Q1 202352 
5.375% Senior Notes due 2029
Q1 2023275 
4.500% Senior Notes due 2029
Q1 2023556 
7.600% Senior Notes, Series P, due 2039
Q1 2023161 
7.650% Senior Notes, Series U, due 2042
Q1 2023131 
5.625% Senior Notes, Series X, due 2025
Q2 20231 
4.500% Senior Notes due 2029
Q2 20232 
7.600% Senior Notes, Series P, due 2039
Q2 20233 
7.650% Senior Notes, Series U, due 2042
Q2 202313 
Total$1,554 

Level 3 Financing, Inc.’s obligations under the 10.500% Notes will be guaranteed on a secured basis by its direct parent, Level 3 Parent, LLC, and certain of its material domestic subsidiaries that guarantee the term loan under Level 3 Financing, Inc.’s existing senior secured credit facility and existing senior secured notes (the “Issuer’s Secured Debt”), subject in certain instances to receipt of regulatory approvals. Such guarantees, when provided by each entity, will be secured by liens on substantially the same collateral that is pledged to secure the Issuer’s Secured Debt.

Revolving Credit Facility Borrowings and Repayments

During the three and six months ended June 30, 2023, Lumen borrowed $525 million from, and made repayments of $325 million to, its Revolving Credit Facility.

Covenants

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

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

Compliance

As of June 30, 2023, 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.
v3.23.2
Severance
 6 Months Ended
Jun. 30, 2023
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: 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, 2022$11 
Accrued to expense13 
Payments, net(12)
Balance at June 30, 2023$12 
v3.23.2
Employee Benefits
 6 Months Ended
Jun. 30, 2023
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
For detailed descriptions 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, 2022.

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

Combined Pension Plan
 Three Months Ended June 30,Six Months Ended June 30,
2023
2022(1)
2023
2022(1)
 (Dollars in millions)
Service cost$6 11 12 23 
Interest cost67 50 135 102 
Expected return on plan assets(72)(102)(143)(202)
Recognition of prior service credit(1)(2)(3)(5)
Recognition of actuarial loss26 30 51 67 
Net periodic pension expense (income)$26 (13)52 (15)
______________________________________________________________________ 
(1)These amounts include pension costs related to the Lumen Pension Plan prior to the sale of the ILEC business on October 3, 2022. For additional information on the Lumen Pension Plan, 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, 2022.
Net periodic benefit expense for our post-retirement benefit plans includes the following components:

 Post-Retirement Benefit Plans
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
 (Dollars in millions)
Service cost$2 2 3 5 
Interest cost25 15 51 30 
Recognition of prior service cost(2)2 (4)4 
Recognition of actuarial loss(5)— (10)— 
Net periodic post-retirement benefit expense$20 19 40 39 

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 (expense), net on our consolidated statements of operations for the three and six months ended June 30, 2023 and 2022.

Our Combined Pension Plan contains 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. The amount of required contributions to the Combined Pension Plan in 2023 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 in 2023 and we do not expect to make voluntary contributions to the trust for the Combined Pension Plan in 2023.
v3.23.2
Earnings Per Common Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Earnings Per Common Share Earnings Per Common Share
Basic and diluted (loss) earnings per common share for the three and six months ended June 30, 2023 and 2022 were calculated as follows:

 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
 (Dollars in millions, except per share amounts, shares in thousands)
(Loss) Income (numerator)
Net (loss) income$(8,736)344 (8,225)943 
Net (loss) income applicable to common stock for computing basic (loss) earnings per common share(8,736)344 (8,225)943 
Net (loss) income as adjusted for purposes of computing diluted (loss) earnings per common share$(8,736)344 (8,225)943 
Shares (denominator):
Weighted-average number of shares:
Outstanding during period1,006,229 1,033,060 1,004,948 1,030,138 
Non-vested restricted stock(22,776)(20,117)(22,443)(19,452)
Weighted average shares outstanding for computing basic (loss) earnings per common share983,453 1,012,943 982,505 1,010,686 
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities— 10 — 10 
Shares issuable under incentive compensation plans— 3,667 — 5,221 
Number of shares as adjusted for purposes of computing diluted (loss) earnings per common share983,453 1,016,620 982,505 1,015,917 
Basic (loss) earnings per common share$(8.88)0.34 (8.37)0.93 
Diluted (loss) earnings per common share(1)
$(8.88)0.34 (8.37)0.93 
______________________________________________________________________ 
(1)For the three and six months ended June 30, 2023, we excluded from the calculation of diluted loss per share, less than 1 million shares, potentially issuable under incentive compensations plans or convertible securities, as their effect, if included, would have been anti-dilutive.

Our calculation of diluted (loss) earnings per common share excludes unvested restricted stock awards that are antidilutive as a result of unrecognized compensation cost. Such shares were 21.0 million and 10.1 million for the three months ended June 30, 2023 and 2022, respectively, and 21.1 million and 9.2 million for the six months ended June 30, 2023 and 2022, respectively.
v3.23.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2023
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, certain equity investments and certain indemnification obligations. 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 using the below-described 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 following financial assets and liabilities as of June 30, 2023 and December 31, 2022:

  June 30, 2023December 31, 2022
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
 (Dollars in millions)
Equity securities(1)
1$— — 22 22 
Long-term debt, excluding finance lease and other obligations
219,754 14,927 20,255 17,309 
Indemnifications related to the sale of the Latin American business(2)
386 8686 86 
______________________________________________________________________ 
(1)For the three and six months ended June 30, 2023, we recognized $3 million and $22 million, respectively, of loss on equity securities in other income (expense), net in our consolidated statements of operations.
(2)Nonrecurring fair value is measured as of August 1, 2022.

Investment Held at Net Asset Value

We hold an investment in a limited partnership created as a holding company for various investments. The limited partnership has sole discretion as to the amount and timing of distributions of the underlying assets. As of June 30, 2023, 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"). Subject to restrictions imposed by law and other provisions of the limited partnership agreement, the general partner has the sole discretion as to the amounts and timing of distributions of partnership assets to partners. The following table summarizes the net asset value of our investment in this limited partnership.

As of June 30, 2023As of December 31, 2022
Net Asset Value
(Dollars in millions)
Investment in limited partnership(1)
$26 85 
______________________________________________________________________
(1)For the three and six months ended June 30, 2023, we recognized a $2 million gain on investment and a $59 million loss on investment, respectively, reflected in other income (expense), net in our consolidated statements of operations. For the three and six months ended June 30, 2022, we recognized $137 million and $71 million, respectively, of loss on investment, reflected in other income (expense), net in our consolidated statements of operations.
v3.23.2
Segment Information
 6 Months Ended
Jun. 30, 2023
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: Large Enterprise, Mid-Market Enterprise, Public Sector and Wholesale. For Business segment revenue, we report the following product categories: Grow, Nurture, Harvest and Other, in each case through the sales channels outlined above. The Business segment included the results of our Latin American and ILEC businesses prior to their sales on August 1, 2022 and October 3, 2022, respectively.

Under our Mass Markets Segment, we provide products and services to residential and small business customers. We report the following product categories: Fiber Broadband, Other Broadband and Voice and Other. The Mass Markets segment included the results of our ILEC business prior to its sale on October 3, 2022.

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 "other unallocated expense" in the table included below under the heading "—Revenue and Expenses". 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 tables summarize our segment results for the three and six months ended June 30, 2023 and 2022, based on the segment categorization we were operating under at June 30, 2023.

Three Months Ended June 30, 2023Six Months Ended June 30, 2023
BusinessMass MarketsBusinessMass Markets
(Dollars in millions)
Segment revenue$2,897 764 5,853 1,546 
Segment expenses:
Cost of services and products746 24 1,547 49 
Selling, general and administrative302 329 592 654 
Total segment expense1,048 353 2,139 703 
Total segment adjusted EBITDA$1,849 411 3,714 843 

Three Months Ended June 30, 2022Six Months Ended June 30, 2022
BusinessMass MarketsBusinessMass Markets
(Dollars in millions)
Segment revenue$3,417 1,195 6,818 2,470 
Segment expenses:
Cost of services and products845 33 1,657 65 
Selling, general and administrative313 418 635 813 
Total segment expense1,158 451 2,292 878 
Total segment adjusted EBITDA$2,259 744 4,526 1,592 
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 chief operating decision maker by segment:

•network expenses not incurred as a direct result of providing services and products to segment customers and centrally managed expenses such as Finance, Human Resources, Legal, Marketing, Product Management and IT, all of which are reported as "other unallocated expense" 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 (loss) income for the three and six months ended June 30, 2023 and 2022:

 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
 (Dollars in millions)
Total segment adjusted EBITDA$2,260 3,003 4,557 6,118 
Depreciation and amortization(746)(827)(1,479)(1,635)
Goodwill impairment(8,793)— (8,793)— 
Other unallocated expense(1,133)(1,239)(2,293)(2,440)
Stock-based compensation(9)(25)(23)(48)
Operating (loss) income(8,421)912 (8,031)1,995 
Total other (expense) income, net(269)(459)21 (741)
(Loss) income before income taxes(8,690)453 (8,010)1,254 
Income tax expenses46 109 215 311 
Net (loss) income$(8,736)344 (8,225)943 
v3.23.2
Commitments, Contingencies and Other Items
 6 Months Ended
Jun. 30, 2023
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.

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. Subject to these limitations, at June 30, 2023, we had accrued $83 million in the aggregate for our litigation and non-income tax contingencies, which is included in other current liabilities, other liabilities, or liabilities held for sale on our consolidated balance sheet as of such date. We cannot at this time estimate the reasonably possible loss or range of loss in excess of this $83 million accrual due to the inherent uncertainties and speculative nature of contested proceedings. 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 Suits

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. Plaintiff filed an amended complaint, and we filed a motion to dismiss. The court granted our motion to dismiss and the plaintiffs have appealed that dismissal.

On March 3, 2023, a purported shareholder of Lumen filed a putative class action complaint captioned Voigt v. Lumen Technologies, Inc., et al., Case 3:23-cv-00286-TAD-KDM, in the U.S. District Court for the Western District of Louisiana. The complaint alleges that Lumen and certain of its current or former officers violated the federal securities laws by omitting or misstating material information related to Lumen’s expansion of its Quantum Fiber business. The complaint seeks money damages, attorneys’ fees and costs, and other relief.

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 the 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. On appeal, the Missouri Court of Appeals affirmed in part and reversed in part, vacated the
judgment and remanded the case to the trial court with instructions for further proceedings consistent with the Missouri Supreme Court's decision. 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.

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 of approximately $7 million for alleged violations of Washington regulations and laws. The Washington Attorney General's office sought penalties of $27 million. Following trial before the WUTC, it issued an order in June 2023 penalizing CenturyLink for approximately $1 million. The company and Washington Attorney General's office have both filed for reconsideration. Those motions are pending.

Latin American Tax Litigation and Claims

In connection with the 2022 divestiture of our Latin American business, the purchaser assumed responsibility for the Peruvian tax litigation and Brazilian tax claims described in our prior periodic reports filed with the SEC. We agreed to indemnify the purchaser for amounts paid in respect of the Brazilian tax claims. The value of this indemnification is included in the indemnification amount as disclosed in Note 10—Fair Value of Financial Instruments.
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. In addition, in the past we acquired companies that installed lead-sheathed cables several decades ago, or operated certain manufacturing companies in the first part of the 1900s. Under applicable environmental laws, we could be responsible for environmental liabilities arising from the historical operations of our predecessors.

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, 2022. 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.
v3.23.2
Other Financial Information
 6 Months Ended
Jun. 30, 2023
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 on our consolidated balance sheets:

June 30, 2023December 31, 2022
(Dollars in millions)
Prepaid expenses$456 319 
Income tax receivable91 — 
Materials, supplies and inventory205 236 
Contract assets17 20 
Contract acquisition costs111 123 
Contract fulfillment costs99 100 
Other5 5 
Total other current assets(1)
$984 803 
______________________________________________________________________
(1)Excludes $63 million and $59 million of other current assets related to the EMEA business that were classified as held for sale as of June 30, 2023 and December 31, 2022, respectively.
v3.23.2
Repurchases of Lumen Common Stock
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Repurchases of Lumen Common Stock Repurchases of Lumen Common Stock
During the fourth quarter of 2022, our Board of Directors authorized a two-year program to repurchase up to an aggregate of $1.5 billion of our outstanding common stock. During the three and six months ended June 30, 2023, we did not repurchase any shares of our outstanding common stock under this program. As of June 30, 2023, we are authorized to purchase up to an aggregate of $1.3 billion of our outstanding common stock under this program.

Any repurchases made in 2023 or thereafter will be subject to a non-deductible 1% excise tax on the fair market value of the stock under the Inflation Reduction Act of 2022.
v3.23.2
Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
Information Relating to 2023

The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheet by component for the six months ended June 30, 2023:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherTotal
 (Dollars in millions)
Balance at December 31, 2022$(985)308 (422)(1,099)
Other comprehensive income before reclassifications— — 20 20 
Amounts reclassified from accumulated other comprehensive loss36 (10)— 26 
Net current-period other comprehensive income (loss)36 (10)20 46 
Balance at June 30, 2023$(949)298 (402)(1,053)

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2023:

Three Months Ended June 30, 2023Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$21 Other income (expense), net
Prior service credit(3)Other income (expense), net
Total before tax18 
Income tax benefit(4)Income tax expense
Net of tax$14  

Six Months Ended June 30, 2023Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$41 Other income (expense), net
Prior service credit(7)Other income (expense), net
Total before tax34  
Income tax benefit(8)Income tax expense
Net of tax$26  
________________________________________________________________________
(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 2022

The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the six months ended June 30, 2022:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherInterest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2021$(1,577)(164)(400)(17)(2,158)
Other comprehensive loss before reclassifications— — (125)— (125)
Amounts reclassified from accumulated other comprehensive loss46 3 — 17 66 
Net current-period other comprehensive income (loss)46 3 (125)17 (59)
Balance at June 30, 2022$(1,531)(161)(525)— (2,217)

The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2022:

Three Months Ended June 30, 2022Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$— Interest expense
Income tax benefit— Income tax expense
Net of tax$— 
Amortization of pension & post-retirement plans(1)
 
Net actuarial loss$30 Other income (expense), net
Prior service cost— Other income (expense), net
Total before tax30 
Income tax benefit(8)Income tax expense
Net of tax$22  

Six Months Ended June 30, 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$67 Other income (expense), net
Prior service cost(1)Other income (expense), net
Total before tax66  
Income tax benefit(17)Income tax expense
Net of tax$49  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit income related to our pension and post-retirement plans.
v3.23.2
Labor Union Contracts
 6 Months Ended
Jun. 30, 2023
Risks and Uncertainties [Abstract]  
Labor Union Contracts Labor Union ContractsAs of June 30, 2023, approximately 20% of our employees were represented by the Communications 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 are scheduled to expire over the 12 month period ending June 30, 2024.
v3.23.2
Background (Policies)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

Our consolidated balance sheet as of December 31, 2022, 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 six months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.
Consolidation
The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated.

To simplify the overall presentation of our consolidated financial statements, we report immaterial amounts attributable to noncontrolling interests in certain of our subsidiaries as follows: (i) income attributable to noncontrolling interests in other income (expense), net, (ii) equity attributable to noncontrolling interests in additional paid-in capital and (iii) cash flows attributable to noncontrolling interests in other, net financing activities.
Reclassification We reclassified certain prior period amounts to conform to the current period presentation, including the recategorization of our Business revenue by product category and sales channel in our segment reporting. See Note 11—Segment Information for additional information. These changes had no impact on total operating revenue, total operating expenses or net (loss) 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

Supplier Finance Programs

On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2022-04, “Liabilities-Supplier Finance Program (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” (“ASU 2022-04”). These amendments require that a company that uses a supplier finance program in connection with the purchase of goods or services disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, program activity during the period, changes from period to period and potential magnitude of program transactions. The adoption of ASU 2022-04 did not have a material impact to our consolidated financial statements.

Credit Losses

On January 1, 2023, we adopted ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures” (“ASU 2022-02”). The ASU eliminates the TDR recognition and measurement guidance, enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The adoption of ASU 2022-02 did not have any impact to our consolidated financial statements.

Derivatives and Hedging

On January 1, 2023, we adopted 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. The adoption of ASU 2022-01 did not have any impact to our consolidated financial statements.

Business Combinations

On January 1, 2023, we adopted ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The adoption of ASU 2021-08 did not have any impact to our consolidated financial statements.

Government Assistance

On January 1, 2022, we adopted ASU 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). This ASU requires business entities to disclose information about certain types of government assistance they receive. The ASU only impacts annual financial statement note disclosures. 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) provides guidance with respect to net investments by lessors under operating leases and other related topics. The adoption of ASU 2021-05 did not have a material impact to our consolidated financial statements.
Recently Issued Accounting Pronouncements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-02, “Investments-Equity method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 will become effective for us in the first quarter of fiscal 2024 and early adoption is permitted. As of June 30, 2023, we do not expect ASU 2023-02 will have an impact to our consolidated financial statements.

In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” (“ASU 2023-01”). These amendments require all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 will become effective for us in the first quarter of fiscal 2024 and early adoption is permitted. As of June 30, 2023, we do not expect ASU 2023-01 will have an impact to our consolidated financial statements.
In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). These amendments clarify that a contractual restriction on the sales of an investment in an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 will become effective for us in the first quarter of fiscal 2024 and early adoption is permitted. As of June 30, 2023, we do not expect ASU 2022-03 will have an impact to our consolidated financial statements.
v3.23.2
Planned Divestiture of the EMEA Business (Tables)
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Components of Pre-Tax Income and Assets and Liabilities as of the Disposal Date
The principal components of the held for sale assets and liabilities of the EMEA business as of the dates below are as follows:

June 30, 2023December 31, 2022
(Dollars in millions)
Assets held for sale
Cash and cash equivalents$46 43 
Accounts receivable, less allowance of $5 and $5
77 76 
Other current assets63 59 
Property, plant and equipment, net of accumulated depreciation of $1,059 and $1,033
1,986 1,873 
Customer relationships and other intangible assets, net106 100 
Operating lease assets197 156 
Valuation allowance on assets held for sale(1)
(750)(660)
Deferred tax assets155 138 
Other non-current assets39 38 
Total assets held for sale$1,919 1,823 
Liabilities held for sale
Accounts payable$67 78 
Salaries and benefits17 23 
Current portion of deferred revenue39 28 
Current operating lease liabilities44 33 
Other current liabilities34 28 
Deferred income taxes52 38 
Asset retirement obligations31 30 
Deferred revenue, non-current103 85 
Operating lease liabilities, non-current104 103 
Total liabilities held for sale$491 446 
______________________________________________________________________ 
(1)Includes the impact of $359 million and $365 million as of June 30, 2023 and December 31, 2022, respectively, primarily related to loss on foreign currency translation, expected to be reclassified out of accumulated other comprehensive loss upon close of the sale.
v3.23.2
Goodwill, Customer Relationships and Other Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
Goodwill, customer relationships and other intangible assets consisted of the following:

June 30, 2023(1)
December 31, 2022(1)
(Dollars in millions)
Goodwill$3,864 12,657 
Indefinite-lived intangible assets$9 9 
Other intangible assets subject to amortization: 
Customer relationships, less accumulated amortization of $3,931 and $3,606
4,246 4,574 
Capitalized software, less accumulated amortization of $3,869 and $3,895(2)
1,551 1,482 
Trade names, patents and other, less accumulated amortization of $65 and $188(2)
93 101 
Total other intangible assets, net$5,899 6,166 
______________________________________________________________________
(1)    These values exclude assets classified as held for sale.
(2)    Certain capitalized software with a gross carrying value of $183 million and trade names with a gross carrying value of $130 million became fully amortized during 2022 and were retired during the first quarter of 2023.
Schedule of Rollforward Goodwill
The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2022 through June 30, 2023.

BusinessMass MarketsTotal
(Dollars in Millions)
As of December 31, 2022(1)
$7,906 4,751 12,657 
Impairment(6,580)(2,213)(8,793)
As of June 30, 2023(1)
$1,326 2,538 3,864 
______________________________________________________________________
(1)Goodwill at June 30, 2023 and December 31, 2022 is net of accumulated impairment losses of $19.8 billion and $11.0 billion, respectively.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
We estimate that amortization expense for finite-lived intangible assets for the years ending December 31, 2023 through 2027 will be as provided in the table below. As a result of classifying our EMEA business as held for sale on our June 30, 2023 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of the business to be divested. See Note 2—Planned Divestiture of the EMEA Business for more information.

 (Dollars in millions)
2023 (remaining six months)$490 
2024904 
2025843 
2026799 
2027719 
v3.23.2
Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue The following tables provide total revenue by segment, sales channel and product category. They also provide 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. The amounts in the tables below include revenue for the Latin American and ILEC businesses prior to their sales on August 1, 2022 and October 3, 2022, respectively. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these divestitures.
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
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
Large Enterprise
Grow$558 (78)480 658 (102)556 
Nurture369 — 369 444 — 444 
Harvest197 — 197 272 — 272 
Other55 (1)54 58 (1)57 
Total Large Enterprise Revenue1,179 (79)1,100 1,432 (103)1,329 
Mid-Market Enterprise
Grow202 (8)194 188 (8)180 
Nurture202 — 202 231 — 231 
Harvest94 (1)93 135 (2)133 
Other9 (1)8 8 — 8 
Total Mid-Market Enterprise Revenue507 (10)497 562 (10)552 
Public Sector
Grow118 (19)99 116 (27)89 
Nurture93 — 93 128 — 128 
Harvest95 — 95 124 (1)123 
Other108 — 108 126 (1)125 
Total Public Sector Revenue414 (19)395 494 (29)465 
Wholesale
Grow260 (62)198 240 (68)172 
Nurture205 (8)197 258 (7)251 
Harvest331 (43)288 405 (56)349 
Other1 — 1 26 — 26 
Total Wholesale Revenue797 (113)684 929 (131)798 
Business Segment by Product Category
Grow1,138 (167)971 1,202 (205)997 
Nurture869 (8)861 1,061 (7)1,054 
Harvest717 (44)673 936 (59)877 
Other173 (2)171 218 (2)216 
Total Business Segment Revenue2,897 (221)2,676 3,417 (273)3,144 
Mass Markets Segment by Product Category
Fiber Broadband157 (4)153 151 (5)146 
Other Broadband355 (32)323 597 (55)542 
Voice and Other252 (9)243 447 (20)427 
Total Mass Markets Revenue764 (45)719 1,195 (80)1,115 
Total Revenue$3,661 (266)3,395 4,612 (353)4,259 
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
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
Large Enterprise
Grow$1,108 (157)951 1,311 (205)1,106 
Nurture744 — 744 898 — 898 
Harvest404 — 404 548 — 548 
Other117 (2)115 117 (3)114 
Total Large Enterprise Revenue2,373 (159)2,214 2,874 (208)2,666 
Mid-Market Enterprise
Grow398 (15)383 373 (16)357 
Nurture413 — 413 472 — 472 
Harvest194 (2)192 275 (4)271 
Other17 (3)14 15 — 15 
Total Mid-Market Enterprise Revenue1,022 (20)1,002 1,135 (20)1,115 
Public Sector
Grow234 (38)196 231 (54)177 
Nurture199 — 199 259 — 259 
Harvest194 — 194 248 (2)246 
Other217 — 217 235 (1)234 
Total Public Sector Revenue844 (38)806 973 (57)916 
Wholesale
Grow526 (133)393 473 (135)338 
Nurture418 (14)404 525 (14)511 
Harvest664 (87)577 812 (114)698 
Other6 — 6 26 — 26 
Total Wholesale Revenue1,614 (234)1,380 1,836 (263)1,573 
Business Segment by Product Category
Grow2,266 (343)1,923 2,388 (410)1,978 
Nurture1,774 (14)1,760 2,154 (14)2,140 
Harvest1,456 (89)1,367 1,883 (120)1,763 
Other357 (5)352 393 (4)389 
Total Business Segment Revenue5,853 (451)5,402 6,818 (548)6,270 
Mass Markets Segment by Product Category
Fiber Broadband309 (8)301 296 (10)286 
Other Broadband724 (65)659 1,207 (111)1,096 
Voice and Other513 (18)495 967 (99)868 
Total Mass Markets Revenue1,546 (91)1,455 2,470 (220)2,250 
Total Revenue$7,399 (542)6,857 9,288 (768)8,520 
_____________________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.
Schedule of Contract with Customer, Asset and Liability
The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts classified as held for sale, as of June 30, 2023 and December 31, 2022:

June 30, 2023December 31, 2022
 (Dollars in millions)
Customer receivables(1)
$1,425 1,424 
Contract assets(2)
27 34 
Contract liabilities(3)
710 656 
______________________________________________________________________
(1)Reflects gross customer receivables of $1.5 billion at both June 30, 2023 and December 31, 2022, net of allowance for credit losses of $67 million and $73 million, at June 30, 2023 and December 31, 2022, respectively. These amounts exclude customer receivables, net, classified as held for sale of $77 million at June 30, 2023 and $76 million at December 31, 2022 related to the EMEA business.
(2)These amounts exclude contract assets classified as held for sale of $12 million at June 30, 2023 and $16 million at December 31, 2022 related to the EMEA business.
(3)These amounts exclude contract liabilities classified as held for sale of $62 million at June 30, 2023 and $59 million at December 31, 2022 related to the EMEA business.
Schedule of Capitalized Contract Cost
The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(1)(2)
$192 182 215 187 
Costs incurred29 39 41 41 
Amortization(39)(36)(49)(39)
Change in contract costs held for sale1 1 1 (1)
End of period balance(5)(6)
$183 186 208 188 

Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)(Dollars in millions)
Beginning of period balance(3)(4)
$202 192 222 186 
Costs incurred65 79 84 81 
Amortization(80)(71)(101)(78)
Change in contract costs held for sale(4)(14)3 (1)
End of period balance(5)(6)
$183 186 208 188 
______________________________________________________________________
(1)Beginning of period balance for the three months ended June 30, 2023 excludes $11 million of acquisition costs and $15 million of fulfillment costs classified as held for sale related to the EMEA business.
(2)Beginning of period balance for the three months ended June 30, 2022 excludes $32 million of both acquisition costs and fulfillment costs classified as held for sale (related to both the Latin American business and the ILEC business, sold in the third and fourth quarters of 2022, respectively).
(3)Beginning of period balance for the six months ended June 30, 2023 excludes $6 million of acquisition costs and no fulfillment costs classified as held for sale related to the EMEA business.
(4)Beginning of period balance for the six months ended June 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $34 million and $32 million, respectively (related to both the Latin American business and the ILEC business, sold in the third and fourth quarters of 2022, respectively).
(5)End of period balance for the three and six months ended June 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.
(6)End of period balance for the three and six months ended June 30, 2022 excludes acquisition costs and fulfillment costs classified as held for sale of $31 million and $33 million, respectively (related to both the Latin American business and the ILEC business, sold in the third and fourth quarters of 2022, respectively).
v3.23.2
Credit Losses on Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Schedule of Financing Receivable, Allowance for Credit Loss
The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the six months ended June 30, 2023:

BusinessMass MarketsTotal
(Dollars in millions)
As of December 31, 2022(1)
$57 28 85 
Provision for expected losses18 29 47 
Write-offs charged against the allowance(24)(34)(58)
Recoveries collected3 1 4 
Ending balance at June 30, 2023(1)
$54 24 78 
______________________________________________________________________
(1)As of June 30, 2023 and December 31, 2022, these amounts excluded $5 million of allowance for credit losses classified as held for sale related to the EMEA business included in the Business portfolio. See Note 2—Planned Divestiture of the EMEA Business.
v3.23.2
Long-Term Debt and Credit Facilities (Tables)
 6 Months Ended
Jun. 30, 2023
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 and unamortized debt issuance costs:

Interest Rates(1)
Maturities(1)
June 30, 2023December 31, 2022
   (Dollars in millions)
Senior Secured Debt: (2)
Lumen Technologies, Inc.
Revolving Credit Facility(3)
SOFR + 2.00%
2025$200 — 
Term Loan A(4)
SOFR + 2.00%
2025962 991 
Term Loan A-1(4)
SOFR + 2.00%
2025275 283 
Term Loan B(5)
SOFR + 2.25%
20273,916 3,941 
Senior notes4.000%20271,250 1,250 
Subsidiaries:
Level 3 Financing, Inc.
Tranche B 2027 Term Loan(6)
SOFR + 1.75%
20272,411 2,411 
Senior notes
3.400% - 10.500%
2027 - 2030
2,425 1,500 
Senior Notes and Other Debt:    
Lumen Technologies, Inc.
Senior notes
4.500% - 7.650%
2025 - 2042
2,143 3,722 
Subsidiaries:
Level 3 Financing, Inc.
Senior notes
3.625% - 4.625%
2027 - 2029
3,940 3,940 
Qwest Corporation
Senior notes
6.500% - 7.750%
2025 - 2057
1,986 1,986 
Term loan(7)
SOFR + 2.50%
2027215 215 
Qwest Capital Funding, Inc.
Senior notes
6.875% - 7.750%
2028 - 2031
192 192 
Finance lease and other obligations(8)
VariousVarious299 317 
Unamortized discounts, net  (3)(7)
Unamortized debt issuance costs(158)(169)
Total long-term debt  20,053 20,572 
Less current maturities   (154)(154)
Long-term debt, excluding current maturities  $19,899 20,418 
______________________________________________________________________ 
(1)As of June 30, 2023.
(2)See Note 7—Long-Term Debt and Credit Facilities in our Annual Report on Form 10-K for the year ended December 31, 2022 for a description of certain parent or subsidiary guarantees and liens securing this debt.
(3)Revolving Credit Facility had an interest rate of 7.262% as of June 30, 2023.
(4)Term Loans A and A-1 had interest rates of 7.217% and 6.384% as of June 30, 2023 and December 31, 2022, respectively.
(5)Term Loan B had interest rates of 7.467% and 6.634% as of June 30, 2023 and December 31, 2022, respectively.
(6)The Level 3 Tranche B 2027 Term Loan had interest rates of 6.967% and 6.134% as of June 30, 2023 and December 31, 2022, respectively.
(7)The Qwest Corporation Term Loan had interest rates of 7.717% and 6.640% as of June 30, 2023 and December 31, 2022, respectively.
(8)Excludes finance lease obligations of our EMEA business classified as held for sale.
Schedule of Maturities of Long-term Debt
Set forth below is the aggregate principal amount of our long-term debt as of June 30, 2023 (excluding unamortized discounts, net, and unamortized debt issuance costs), maturing during the following years. As a result of classifying our EMEA business as held for sale on our June 30, 2023 consolidated balance sheet, the amounts presented below do not include maturities of the finance lease obligations of that business. See Note 2—Planned Divestiture of the EMEA Business.

 (Dollars in millions)
2023 (remaining six months)$76 
2024157 
20251,864 
2026498 
20279,386 
2028 and thereafter8,233 
Total long-term debt$20,214 
Schedule of Debt Repayments
The following table sets forth the aggregate principal amount of each series of Lumen’s senior unsecured notes retired during the six months ended June 30, 2023, in connection with the above-described exchange transactions:

DebtPeriod of Reduction(Aggregate principal amount in millions)
5.625% Senior Notes, Series X, due 2025
Q1 2023$48 
7.200% Senior Notes, Series D, due 2025
Q1 202321 
5.125% Senior Notes due 2026
Q1 2023291 
6.875% Debentures, Series G, due 2028
Q1 202352 
5.375% Senior Notes due 2029
Q1 2023275 
4.500% Senior Notes due 2029
Q1 2023556 
7.600% Senior Notes, Series P, due 2039
Q1 2023161 
7.650% Senior Notes, Series U, due 2042
Q1 2023131 
5.625% Senior Notes, Series X, due 2025
Q2 20231 
4.500% Senior Notes due 2029
Q2 20232 
7.600% Senior Notes, Series P, due 2039
Q2 20233 
7.650% Senior Notes, Series U, due 2042
Q2 202313 
Total$1,554 
v3.23.2
Severance (Tables)
 6 Months Ended
Jun. 30, 2023
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, 2022$11 
Accrued to expense13 
Payments, net(12)
Balance at June 30, 2023$12 
v3.23.2
Employee Benefits (Tables)
 6 Months Ended
Jun. 30, 2023
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Pension Benefit (Income) Expense and Post-retirement Benefit Expense
Net periodic benefit expense (income) for the Lumen Combined Pension Plan (the "Combined Pension Plan" or the "Plan") includes the following components:

Combined Pension Plan
 Three Months Ended June 30,Six Months Ended June 30,
2023
2022(1)
2023
2022(1)
 (Dollars in millions)
Service cost$6 11 12 23 
Interest cost67 50 135 102 
Expected return on plan assets(72)(102)(143)(202)
Recognition of prior service credit(1)(2)(3)(5)
Recognition of actuarial loss26 30 51 67 
Net periodic pension expense (income)$26 (13)52 (15)
______________________________________________________________________ 
(1)These amounts include pension costs related to the Lumen Pension Plan prior to the sale of the ILEC business on October 3, 2022. For additional information on the Lumen Pension Plan, 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, 2022.
Net periodic benefit expense for our post-retirement benefit plans includes the following components:

 Post-Retirement Benefit Plans
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
 (Dollars in millions)
Service cost$2 2 3 5 
Interest cost25 15 51 30 
Recognition of prior service cost(2)2 (4)4 
Recognition of actuarial loss(5)— (10)— 
Net periodic post-retirement benefit expense$20 19 40 39 
v3.23.2
Earnings Per Common Share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Common Share
Basic and diluted (loss) earnings per common share for the three and six months ended June 30, 2023 and 2022 were calculated as follows:

 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
 (Dollars in millions, except per share amounts, shares in thousands)
(Loss) Income (numerator)
Net (loss) income$(8,736)344 (8,225)943 
Net (loss) income applicable to common stock for computing basic (loss) earnings per common share(8,736)344 (8,225)943 
Net (loss) income as adjusted for purposes of computing diluted (loss) earnings per common share$(8,736)344 (8,225)943 
Shares (denominator):
Weighted-average number of shares:
Outstanding during period1,006,229 1,033,060 1,004,948 1,030,138 
Non-vested restricted stock(22,776)(20,117)(22,443)(19,452)
Weighted average shares outstanding for computing basic (loss) earnings per common share983,453 1,012,943 982,505 1,010,686 
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities— 10 — 10 
Shares issuable under incentive compensation plans— 3,667 — 5,221 
Number of shares as adjusted for purposes of computing diluted (loss) earnings per common share983,453 1,016,620 982,505 1,015,917 
Basic (loss) earnings per common share$(8.88)0.34 (8.37)0.93 
Diluted (loss) earnings per common share(1)
$(8.88)0.34 (8.37)0.93 
______________________________________________________________________ 
(1)For the three and six months ended June 30, 2023, we excluded from the calculation of diluted loss per share, less than 1 million shares, potentially issuable under incentive compensations plans or convertible securities, as their effect, if included, would have been anti-dilutive.
v3.23.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of the Three Input Levels in the Hierarchy of Fair Value Measurements
The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:

Input 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 Financial Assets and Liabilities
The following table presents the carrying amounts and estimated fair values of our following financial assets and liabilities as of June 30, 2023 and December 31, 2022:

  June 30, 2023December 31, 2022
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
 (Dollars in millions)
Equity securities(1)
1$— — 22 22 
Long-term debt, excluding finance lease and other obligations
219,754 14,927 20,255 17,309 
Indemnifications related to the sale of the Latin American business(2)
386 8686 86 
______________________________________________________________________ 
(1)For the three and six months ended June 30, 2023, we recognized $3 million and $22 million, respectively, of loss on equity securities in other income (expense), net in our consolidated statements of operations.
(2)Nonrecurring fair value is measured as of August 1, 2022.
Schedule of Fair Value, Investments, Entities that Calculate Net Asset Value Per Share
As of June 30, 2023As of December 31, 2022
Net Asset Value
(Dollars in millions)
Investment in limited partnership(1)
$26 85 
______________________________________________________________________
(1)For the three and six months ended June 30, 2023, we recognized a $2 million gain on investment and a $59 million loss on investment, respectively, reflected in other income (expense), net in our consolidated statements of operations. For the three and six months ended June 30, 2022, we recognized $137 million and $71 million, respectively, of loss on investment, reflected in other income (expense), net in our consolidated statements of operations.
v3.23.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Results
The following tables summarize our segment results for the three and six months ended June 30, 2023 and 2022, based on the segment categorization we were operating under at June 30, 2023.

Three Months Ended June 30, 2023Six Months Ended June 30, 2023
BusinessMass MarketsBusinessMass Markets
(Dollars in millions)
Segment revenue$2,897 764 5,853 1,546 
Segment expenses:
Cost of services and products746 24 1,547 49 
Selling, general and administrative302 329 592 654 
Total segment expense1,048 353 2,139 703 
Total segment adjusted EBITDA$1,849 411 3,714 843 

Three Months Ended June 30, 2022Six Months Ended June 30, 2022
BusinessMass MarketsBusinessMass Markets
(Dollars in millions)
Segment revenue$3,417 1,195 6,818 2,470 
Segment expenses:
Cost of services and products845 33 1,657 65 
Selling, general and administrative313 418 635 813 
Total segment expense1,158 451 2,292 878 
Total segment adjusted EBITDA$2,259 744 4,526 1,592 
Schedule of Reconciliation of Operating Profit (Loss) From Segments to Consolidated Net Income
The following table reconciles total segment adjusted EBITDA to net (loss) income for the three and six months ended June 30, 2023 and 2022:

 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
 (Dollars in millions)
Total segment adjusted EBITDA$2,260 3,003 4,557 6,118 
Depreciation and amortization(746)(827)(1,479)(1,635)
Goodwill impairment(8,793)— (8,793)— 
Other unallocated expense(1,133)(1,239)(2,293)(2,440)
Stock-based compensation(9)(25)(23)(48)
Operating (loss) income(8,421)912 (8,031)1,995 
Total other (expense) income, net(269)(459)21 (741)
(Loss) income before income taxes(8,690)453 (8,010)1,254 
Income tax expenses46 109 215 311 
Net (loss) income$(8,736)344 (8,225)943 
v3.23.2
Other Financial Information (Tables)
 6 Months Ended
Jun. 30, 2023
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 on our consolidated balance sheets:

June 30, 2023December 31, 2022
(Dollars in millions)
Prepaid expenses$456 319 
Income tax receivable91 — 
Materials, supplies and inventory205 236 
Contract assets17 20 
Contract acquisition costs111 123 
Contract fulfillment costs99 100 
Other5 5 
Total other current assets(1)
$984 803 
______________________________________________________________________
(1)Excludes $63 million and $59 million of other current assets related to the EMEA business that were classified as held for sale as of June 30, 2023 and December 31, 2022, respectively.
v3.23.2
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of the Entity's Accumulated Other Comprehensive Income (Loss) by Component
The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheet by component for the six months ended June 30, 2023:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherTotal
 (Dollars in millions)
Balance at December 31, 2022$(985)308 (422)(1,099)
Other comprehensive income before reclassifications— — 20 20 
Amounts reclassified from accumulated other comprehensive loss36 (10)— 26 
Net current-period other comprehensive income (loss)36 (10)20 46 
Balance at June 30, 2023$(949)298 (402)(1,053)
The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the six months ended June 30, 2022:

Pension PlansPost-Retirement Benefit PlansForeign Currency Translation Adjustment and OtherInterest Rate SwapTotal
 (Dollars in millions)
Balance at December 31, 2021$(1,577)(164)(400)(17)(2,158)
Other comprehensive loss before reclassifications— — (125)— (125)
Amounts reclassified from accumulated other comprehensive loss46 3 — 17 66 
Net current-period other comprehensive income (loss)46 3 (125)17 (59)
Balance at June 30, 2022$(1,531)(161)(525)— (2,217)
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component
The tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2023:

Three Months Ended June 30, 2023Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$21 Other income (expense), net
Prior service credit(3)Other income (expense), net
Total before tax18 
Income tax benefit(4)Income tax expense
Net of tax$14  

Six Months Ended June 30, 2023Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Amortization of pension & post-retirement plans(1)
  
Net actuarial loss$41 Other income (expense), net
Prior service credit(7)Other income (expense), net
Total before tax34  
Income tax benefit(8)Income tax expense
Net of tax$26  
________________________________________________________________________
(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 tables below present further information about our reclassifications out of accumulated other comprehensive loss by component for the three and six months ended June 30, 2022:

Three Months Ended June 30, 2022Decrease (Increase)
in Net Income		Affected Line Item in Consolidated Statement of Operations
 (Dollars in millions) 
Interest rate swaps$— Interest expense
Income tax benefit— Income tax expense
Net of tax$— 
Amortization of pension & post-retirement plans(1)
 
Net actuarial loss$30 Other income (expense), net
Prior service cost— Other income (expense), net
Total before tax30 
Income tax benefit(8)Income tax expense
Net of tax$22  

Six Months Ended June 30, 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$67 Other income (expense), net
Prior service cost(1)Other income (expense), net
Total before tax66  
Income tax benefit(17)Income tax expense
Net of tax$49  
________________________________________________________________________
(1)See Note 8—Employee Benefits for additional information on our net periodic benefit income related to our pension and post-retirement plans.
v3.23.2
Background (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Book overdraft balance $ 0 $ 0
v3.23.2
Planned Divestiture of the EMEA Business - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Nov. 02, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Depreciation and amortization       $ 1,479 $ 1,635    
Goodwill impairment $ 8,793   $ 0 8,793 0    
Loss on disposal group held for sale 13   $ 0 90 $ 0    
Held-for-sale, Not Discontinued Operations              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Depreciation and amortization 72     144      
Loss on disposal group held for sale $ 13     $ 90      
Held-for-sale, Not Discontinued Operations | EMEA Business              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Goodwill impairment   $ 43          
Loss on disposal group held for sale           $ 660  
Held-for-sale, Not Discontinued Operations | EMEA 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             $ 1,800
v3.23.2
Planned Divestiture of the EMEA Business - Schedule of Components of Pre-Tax Income and Assets and Liabilities as of the Disposal Date (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Assets held for sale    
Other current assets $ 63 $ 59
Held-for-sale, Not Discontinued Operations | EMEA Business    
Assets held for sale    
Cash and cash equivalents 46 43
Accounts receivable, less allowance of $5 and $5 77 76
Other current assets 63 59
Property, plant and equipment, net of accumulated depreciation of $1,059 and $1,033 1,986 1,873
Customer relationships and other intangible assets, net 106 100
Operating lease assets 197 156
Valuation allowance on assets held for sale (750) (660)
Deferred tax assets 155 138
Other non-current assets 39 38
Total assets held for sale 1,919 1,823
Liabilities held for sale    
Accounts payable 67 78
Salaries and benefits 17 23
Current portion of deferred revenue 39 28
Current operating lease liabilities 44 33
Other current liabilities 34 28
Deferred income taxes 52 38
Asset retirement obligations 31 30
Deferred revenue, non-current 103 85
Operating lease liabilities, non-current 104 103
Total liabilities held for sale 491 446
Allowance for doubtful accounts 5 5
Accumulated depreciation 1,059 1,033
Loss on foreign currency translation $ 359 $ 365
v3.23.2
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill, Customer Relationships, and Other Intangible Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Goodwill And Intangible Assets [Line Items]    
Goodwill $ 3,864 $ 12,657
Indefinite-lived intangible assets 9 9
Total other intangible assets, net 5,899 6,166
Customer Relationships    
Goodwill And Intangible Assets [Line Items]    
Finite-lived intangible assets, net 4,246 4,574
Accumulated amortization 3,931 3,606
Capitalized Software    
Goodwill And Intangible Assets [Line Items]    
Finite-lived intangible assets, net 1,551 1,482
Accumulated amortization 3,869 3,895
Trade Names, Patents and Other    
Goodwill And Intangible Assets [Line Items]    
Finite-lived intangible assets, net 93 101
Accumulated amortization $ 65 188
Fully Amortized and Retired Capitalized Software    
Goodwill And Intangible Assets [Line Items]    
Gross carrying value   183
Fully Amortized and Retired Trade Names    
Goodwill And Intangible Assets [Line Items]    
Gross carrying value   $ 130
v3.23.2
Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
segment
reporting_unit
Jun. 30, 2022
USD ($)
Finite-Lived Intangible Assets [Line Items]          
Intangible assets, gross (including goodwill) $ 17,600     $ 17,600  
Number of reportable segments | segment       2  
Number of operating segments | segment       2  
Number of reporting units | reporting_unit       3  
Goodwill impairment 8,793   $ 0 $ 8,793 $ 0
Amortization of intangible assets 263   $ 277 523 $ 551
Held-for-sale, Not Discontinued Operations | EMEA Business          
Finite-Lived Intangible Assets [Line Items]          
Goodwill impairment   $ 43      
Allowance for doubtful accounts $ 5 $ 5   $ 5  
Minimum | Revenue Multiple          
Finite-Lived Intangible Assets [Line Items]          
Goodwill impairment, measurement input 1.5     1.5  
Minimum | EBITDA Multiple          
Finite-Lived Intangible Assets [Line Items]          
Goodwill impairment, measurement input 4.6     4.6  
Maximum | Revenue Multiple          
Finite-Lived Intangible Assets [Line Items]          
Goodwill impairment, measurement input 4.3     4.3  
Maximum | EBITDA Multiple          
Finite-Lived Intangible Assets [Line Items]          
Goodwill impairment, measurement input 10.5     10.5  
v3.23.2
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Rollforward Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Goodwill Activity          
As of beginning of period       $ 12,657  
Impairment $ (8,793)   $ 0 (8,793) $ 0
As of end of period 3,864 $ 12,657   3,864  
Accumulated impairment losses 19,800 11,000   19,800  
Business          
Goodwill Activity          
As of beginning of period       7,906  
Impairment       (6,580)  
As of end of period 1,326 7,906   1,326  
Mass Markets          
Goodwill Activity          
As of beginning of period       4,751  
Impairment       (2,213)  
As of end of period $ 2,538 $ 4,751   $ 2,538  
v3.23.2
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Amortization Expense (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2023 (remaining six months) $ 490
2024 904
2025 843
2026 799
2027 $ 719
v3.23.2
Revenue Recognition - Schedule of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Total Revenue $ 3,661 $ 4,612 $ 7,399 $ 9,288
Operating Segments        
Disaggregation of Revenue [Line Items]        
Total Revenue 3,661 4,612 7,399 9,288
Adjustments for Non-ASC 606 revenue (266) (353) (542) (768)
Total revenue from Contracts with Customers 3,395 4,259 6,857 8,520
Operating Segments | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 2,897 3,417 5,853 6,818
Adjustments for Non-ASC 606 revenue (221) (273) (451) (548)
Total revenue from Contracts with Customers 2,676 3,144 5,402 6,270
Operating Segments | Mass Markets        
Disaggregation of Revenue [Line Items]        
Total Revenue 764 1,195 1,546 2,470
Adjustments for Non-ASC 606 revenue (45) (80) (91) (220)
Total revenue from Contracts with Customers 719 1,115 1,455 2,250
Operating Segments | Large Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 1,179 1,432 2,373 2,874
Adjustments for Non-ASC 606 revenue (79) (103) (159) (208)
Total revenue from Contracts with Customers 1,100 1,329 2,214 2,666
Operating Segments | Mid-Market Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 507 562 1,022 1,135
Adjustments for Non-ASC 606 revenue (10) (10) (20) (20)
Total revenue from Contracts with Customers 497 552 1,002 1,115
Operating Segments | Public Sector | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 414 494 844 973
Adjustments for Non-ASC 606 revenue (19) (29) (38) (57)
Total revenue from Contracts with Customers 395 465 806 916
Operating Segments | Wholesale | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 797 929 1,614 1,836
Adjustments for Non-ASC 606 revenue (113) (131) (234) (263)
Total revenue from Contracts with Customers 684 798 1,380 1,573
Operating Segments | Grow | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 1,138 1,202 2,266 2,388
Adjustments for Non-ASC 606 revenue (167) (205) (343) (410)
Total revenue from Contracts with Customers 971 997 1,923 1,978
Operating Segments | Grow | Large Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 558 658 1,108 1,311
Adjustments for Non-ASC 606 revenue (78) (102) (157) (205)
Total revenue from Contracts with Customers 480 556 951 1,106
Operating Segments | Grow | Mid-Market Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 202 188 398 373
Adjustments for Non-ASC 606 revenue (8) (8) (15) (16)
Total revenue from Contracts with Customers 194 180 383 357
Operating Segments | Grow | Public Sector | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 118 116 234 231
Adjustments for Non-ASC 606 revenue (19) (27) (38) (54)
Total revenue from Contracts with Customers 99 89 196 177
Operating Segments | Grow | Wholesale | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 260 240 526 473
Adjustments for Non-ASC 606 revenue (62) (68) (133) (135)
Total revenue from Contracts with Customers 198 172 393 338
Operating Segments | Nurture | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 869 1,061 1,774 2,154
Adjustments for Non-ASC 606 revenue (8) (7) (14) (14)
Total revenue from Contracts with Customers 861 1,054 1,760 2,140
Operating Segments | Nurture | Large Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 369 444 744 898
Adjustments for Non-ASC 606 revenue 0 0 0 0
Total revenue from Contracts with Customers 369 444 744 898
Operating Segments | Nurture | Mid-Market Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 202 231 413 472
Adjustments for Non-ASC 606 revenue 0 0 0 0
Total revenue from Contracts with Customers 202 231 413 472
Operating Segments | Nurture | Public Sector | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 93 128 199 259
Adjustments for Non-ASC 606 revenue 0 0 0 0
Total revenue from Contracts with Customers 93 128 199 259
Operating Segments | Nurture | Wholesale | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 205 258 418 525
Adjustments for Non-ASC 606 revenue (8) (7) (14) (14)
Total revenue from Contracts with Customers 197 251 404 511
Operating Segments | Harvest | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 717 936 1,456 1,883
Adjustments for Non-ASC 606 revenue (44) (59) (89) (120)
Total revenue from Contracts with Customers 673 877 1,367 1,763
Operating Segments | Harvest | Large Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 197 272 404 548
Adjustments for Non-ASC 606 revenue 0 0 0 0
Total revenue from Contracts with Customers 197 272 404 548
Operating Segments | Harvest | Mid-Market Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 94 135 194 275
Adjustments for Non-ASC 606 revenue (1) (2) (2) (4)
Total revenue from Contracts with Customers 93 133 192 271
Operating Segments | Harvest | Public Sector | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 95 124 194 248
Adjustments for Non-ASC 606 revenue 0 (1) 0 (2)
Total revenue from Contracts with Customers 95 123 194 246
Operating Segments | Harvest | Wholesale | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 331 405 664 812
Adjustments for Non-ASC 606 revenue (43) (56) (87) (114)
Total revenue from Contracts with Customers 288 349 577 698
Operating Segments | Other | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 173 218 357 393
Adjustments for Non-ASC 606 revenue (2) (2) (5) (4)
Total revenue from Contracts with Customers 171 216 352 389
Operating Segments | Other | Large Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 55 58 117 117
Adjustments for Non-ASC 606 revenue (1) (1) (2) (3)
Total revenue from Contracts with Customers 54 57 115 114
Operating Segments | Other | Mid-Market Enterprise | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 9 8 17 15
Adjustments for Non-ASC 606 revenue (1) 0 (3) 0
Total revenue from Contracts with Customers 8 8 14 15
Operating Segments | Other | Public Sector | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 108 126 217 235
Adjustments for Non-ASC 606 revenue 0 (1) 0 (1)
Total revenue from Contracts with Customers 108 125 217 234
Operating Segments | Other | Wholesale | Business        
Disaggregation of Revenue [Line Items]        
Total Revenue 1 26 6 26
Adjustments for Non-ASC 606 revenue 0 0 0 0
Total revenue from Contracts with Customers 1 26 6 26
Operating Segments | Fiber Broadband | Mass Markets        
Disaggregation of Revenue [Line Items]        
Total Revenue 157 151 309 296
Adjustments for Non-ASC 606 revenue (4) (5) (8) (10)
Total revenue from Contracts with Customers 153 146 301 286
Operating Segments | Other Broadband | Mass Markets        
Disaggregation of Revenue [Line Items]        
Total Revenue 355 597 724 1,207
Adjustments for Non-ASC 606 revenue (32) (55) (65) (111)
Total revenue from Contracts with Customers 323 542 659 1,096
Operating Segments | Voice and Other | Mass Markets        
Disaggregation of Revenue [Line Items]        
Total Revenue 252 447 513 967
Adjustments for Non-ASC 606 revenue (9) (20) (18) (99)
Total revenue from Contracts with Customers $ 243 $ 427 $ 495 $ 868
v3.23.2
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Lease income $ 257 $ 334 $ 526 $ 671    
Percent of operating revenue (as a percent) 7.00% 7.00% 7.00% 7.00%    
Revenue recognized $ 42 $ 52 $ 347 $ 447    
Contract liabilities         $ 715 $ 841
Remaining performance obligation 6,900   6,900      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Remaining performance obligation $ 1,600   $ 1,600      
Remaining performance obligation, satisfaction period 6 months   6 months      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Remaining performance obligation $ 2,000   $ 2,000      
Remaining performance obligation, satisfaction period 1 year   1 year      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Remaining performance obligation $ 3,300   $ 3,300      
Remaining performance obligation, satisfaction period 3 years   3 years      
Minimum            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Contract term (in years)     1 year      
Maximum            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Contract term (in years)     5 years      
Weighted Average | Mass Market Customers            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Length of customer life (in months)     36 months      
Weighted Average | Business Customers            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]            
Length of customer life (in months)     33 months      
v3.23.2
Revenue Recognition - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Dec. 31, 2021
Capitalized Contract Cost [Line Items]      
Customer receivables $ 1,425 $ 1,424  
Contract assets 27 34  
Contract liabilities 710 656  
Accounts receivable, gross 1,500 1,500  
Allowance for doubtful accounts receivable 67 73  
Contract liabilities   715 $ 841
Held-for-sale, Not Discontinued Operations | EMEA Business      
Capitalized Contract Cost [Line Items]      
Customer receivables 77 76  
Contract assets 12 16  
Contract liabilities $ 62 $ 59  
v3.23.2
Revenue Recognition - Schedule of Capitalized Contract Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Held-for-sale | Latin American Business and ILEC Business        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance   $ 32    
Acquisition Costs        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance $ 192 215 $ 202 $ 222
Costs incurred 29 41 65 84
Amortization (39) (49) (80) (101)
Change in contract costs held for sale 1 1 (4) 3
End of period balance 183 208 183 208
Acquisition Costs | Held-for-sale, Not Discontinued Operations | EMEA Business        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance 11   6  
End of period balance 10   10  
Acquisition Costs | Held-for-sale | Latin American Business and ILEC Business        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance       32
End of period balance   33   33
Fulfillment Costs        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance 182 187 192 186
Costs incurred 39 41 79 81
Amortization (36) (39) (71) (78)
Change in contract costs held for sale 1 (1) (14) (1)
End of period balance 186 188 186 188
Fulfillment Costs | Held-for-sale, Not Discontinued Operations | EMEA Business        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance 15   0  
End of period balance $ 14   $ 14  
Fulfillment Costs | Held-for-sale | Latin American Business and ILEC Business        
Capitalized Contract Cost [Roll Forward]        
Beginning of period balance       34
End of period balance   $ 31   $ 31
v3.23.2
Credit Losses on Financial Instruments (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance at December 31, 2021 $ 85  
Provision for expected losses 47  
Write-offs charged against the allowance (58)  
Recoveries collected 4  
Ending balance at September 30, 2022 78  
Held-for-sale, Not Discontinued Operations | EMEA Business    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for doubtful accounts 5 $ 5
Business    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance at December 31, 2021 57  
Provision for expected losses 18  
Write-offs charged against the allowance (24)  
Recoveries collected 3  
Ending balance at September 30, 2022 54  
Mass Markets    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance at December 31, 2021 28  
Provision for expected losses 29  
Write-offs charged against the allowance (34)  
Recoveries collected 1  
Ending balance at September 30, 2022 $ 24  
v3.23.2
Long-Term Debt and Credit Facilities - Schedule of Long Term Debt (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Long-term Debt and Credit Facilities    
Finance lease and other obligations $ 299 $ 317
Unamortized discounts, net (3) (7)
Unamortized debt issuance costs (158) (169)
Total long-term debt 20,053 20,572
Less current maturities (154) (154)
Long-term debt, excluding current maturities 19,899 20,418
Term Loan | Qwest Corporation    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 215 $ 215
Long-term debt, weighted average interest rate (as a percent) 7.717% 6.64%
Term Loan | SOFR | Qwest Corporation    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.50%  
Senior Notes | Qwest Corporation    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 1,986 $ 1,986
Senior Notes | Qwest Corporation | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 6.50%  
Senior Notes | Qwest Corporation | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 7.75%  
Senior Notes | Qwest Capital Funding, Inc.    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 192 192
Senior Notes | Qwest Capital Funding, Inc. | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 6.875%  
Senior Notes | Qwest Capital Funding, Inc. | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 7.75%  
Revolving Credit Facility | Line of Credit    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 200 0
Long-term debt, weighted average interest rate (as a percent) 7.262%  
Revolving Credit Facility | Line of Credit | SOFR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Term Loan A | Term Loan    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 962 $ 991
Long-term debt, weighted average interest rate (as a percent) 7.217% 6.384%
Term Loan A | Term Loan | SOFR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Term Loan A-1 | Term Loan    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 275 $ 283
Long-term debt, weighted average interest rate (as a percent) 7.217% 6.384%
Term Loan A-1 | Term Loan | SOFR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.00%  
Term Loan B | Term Loan    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 3,916 $ 3,941
Long-term debt, weighted average interest rate (as a percent) 7.467% 6.634%
Term Loan B | Term Loan | SOFR    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 2.25%  
4.000% Senior Secured Notes Due 2027 | Senior Notes    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 4.00%  
Long-term debt, gross $ 1,250 $ 1,250
Tranche B 2027 Term Loan | Term Loan | Level 3 Financing, Inc.    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 2,411 $ 2,411
Long-term debt, weighted average interest rate (as a percent) 6.967% 6.134%
Tranche B 2027 Term Loan | Term Loan | SOFR | Level 3 Financing, Inc.    
Long-term Debt and Credit Facilities    
Basis spread (as a percent) 1.75%  
Senior Notes, Maturing 2027-2030 | Senior Notes | Level 3 Financing, Inc.    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 2,425 $ 1,500
Senior Notes, Maturing 2027-2030 | Senior Notes | Level 3 Financing, Inc. | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 3.40%  
Senior Notes, Maturing 2027-2030 | Senior Notes | Level 3 Financing, Inc. | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 10.50%  
Senior Notes Maturing 2025-2042 | Senior Notes    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 2,143 3,722
Senior Notes Maturing 2025-2042 | Senior Notes | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 4.50%  
Senior Notes Maturing 2025-2042 | Senior Notes | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 7.65%  
Senior Notes, Maturing 2027-2029 | Senior Notes | Level 3 Financing, Inc.    
Long-term Debt and Credit Facilities    
Long-term debt, gross $ 3,940 $ 3,940
Senior Notes, Maturing 2027-2029 | Senior Notes | Level 3 Financing, Inc. | Minimum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 3.625%  
Senior Notes, Maturing 2027-2029 | Senior Notes | Level 3 Financing, Inc. | Maximum    
Long-term Debt and Credit Facilities    
Stated interest rate (as a percent ) 4.625%  
v3.23.2
Long-Term Debt and Credit Facilities - Schedule of Maturities of Long Term Debt (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Debt Disclosure [Abstract]  
2023 (remaining six months) $ 76
2024 157
2025 1,864
2026 498
2027 9,386
2028 and thereafter 8,233
Total long-term debt $ 20,214
v3.23.2
Long-Term Debt and Credit Facilities - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Jun. 30, 2022
Apr. 17, 2023
Mar. 31, 2023
Long-term Debt and Credit Facilities          
Reduction in aggregate principal amount of debt   $ 630      
Net gain on early retirement of debt   618 $ 0    
Borrowings from revolving credit facility $ 525 525      
Repayments of revolving credit facility $ 325 $ 325      
Senior Notes | Lumen Technologies, Inc.          
Long-term Debt and Credit Facilities          
Face amount       $ 19 $ 1,535
Repurchased face amount         24
Senior Notes | 10.500% Senior Secured Notes due 2030 | Level 3 Financing, Inc.          
Long-term Debt and Credit Facilities          
Face amount       $ 9 $ 915
Stated interest rate (as a percent )       10.50% 10.50%
v3.23.2
Long-Term Debt and Credit Facilities - Schedule of Debt Repayments (Details) - Senior Notes - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Long-term Debt and Credit Facilities      
Repayments of debt     $ 1,554
5.625% Senior Notes, Series X, due 2025      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 5.625%   5.625%
Repayments of debt $ 1 $ 48  
7.200% Senior Notes, Series D, due 2025      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 7.20%   7.20%
Repayments of debt   21  
5.125% Senior Notes due 2026      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 5.125%   5.125%
Repayments of debt   291  
6.875% Debentures, Series G, due 2028      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 6.875%   6.875%
Repayments of debt   52  
5.375% Senior Notes due 2029      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 5.375%   5.375%
Repayments of debt   275  
4.500% Senior Notes due 2029      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 4.50%   4.50%
Repayments of debt $ 2 556  
7.600% Senior Notes, Series P, due 2039      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 7.60%   7.60%
Repayments of debt $ 3 161  
7.650% Senior Notes, Series U, due 2042      
Long-term Debt and Credit Facilities      
Stated interest rate (as a percent ) 7.65%   7.65%
Repayments of debt $ 13 $ 131  
v3.23.2
Severance (Details) - Severance
$ in Millions
 6 Months Ended
Jun. 30, 2023
USD ($)
Restructuring reserve  
Balance at the beginning of the period $ 11
Accrued to expense 13
Payments, net (12)
Balance at the end of the period $ 12
v3.23.2
Employee Benefits - Schedule of Net Periodic Benefit (Income) Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Pension Plans        
Components of net periodic (benefit) expense        
Service cost $ 6 $ 11 $ 12 $ 23
Interest cost 67 50 135 102
Expected return on plan assets (72) (102) (143) (202)
Recognition of prior service credit (1) (2) (3) (5)
Recognition of actuarial loss 26 30 51 67
Net periodic post-retirement benefit expense 26 (13) 52 (15)
Post-Retirement Benefit Plans        
Components of net periodic (benefit) expense        
Service cost 2 2 3 5
Interest cost 25 15 51 30
Recognition of prior service credit (2) 2 (4) 4
Recognition of actuarial loss (5) 0 (10) 0
Net periodic post-retirement benefit expense $ 20 $ 19 $ 40 $ 39
v3.23.2
Earnings Per Common Share - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
(Loss) Income (numerator)        
Net (loss) income $ (8,736) $ 344 $ (8,225) $ 943
Net (loss) income applicable to common stock for computing basic (loss) earnings per common share (8,736) 344 (8,225) 943
Net (loss) income as adjusted for purposes of computing diluted (loss) earnings per common share $ (8,736) $ 344 $ (8,225) $ 943
Weighted-average number of shares:        
Outstanding during period (in shares) 1,006,229 1,033,060 1,004,948 1,030,138
Non-vested restricted stock (in shares) (22,776) (20,117) (22,443) (19,452)
Weighted average shares outstanding for computing basic (loss) earnings per common share (in shares) 983,453 1,012,943 982,505 1,010,686
Incremental common shares attributable to dilutive securities:        
Shares issuable under convertible securities (in shares) 0 10 0 10
Shares issuable under incentive compensation plans (in shares) 0 3,667 0 5,221
Number of shares as adjusted for purposes of computing diluted (loss) earnings per common share (in shares) 983,453 1,016,620 982,505 1,015,917
Basic (loss) earnings per common share (in dollars per share) $ (8.88) $ 0.34 $ (8.37) $ 0.93
Diluted (loss) earnings per common share (in dollars per share) $ (8.88) $ 0.34 $ (8.37) $ 0.93
v3.23.2
Earnings Per Common Share - Additional Information (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares of common stock excluded from the computation of diluted earnings per share (less than) (in shares) 21.0 10.1 21.1 9.2
Stock Compensation Plan        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares of common stock excluded from the computation of diluted earnings per share (less than) (in shares) 1.0   1.0  
v3.23.2
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Dec. 31, 2022
Fair value disclosure      
Loss on equity securities $ 3 $ 22  
Fair Value, Inputs, Level 1 | Carrying Amount      
Fair value disclosure      
Equity securities 0 0 $ 22
Fair Value, Inputs, Level 1 | Fair Value      
Fair value disclosure      
Equity securities 0 0 22
Fair Value Inputs, Level 2 | Carrying Amount      
Fair value disclosure      
Long-term debt, excluding finance lease and other obligations 19,754 19,754 20,255
Fair Value Inputs, Level 2 | Fair Value      
Fair value disclosure      
Long-term debt, excluding finance lease and other obligations 14,927 14,927 17,309
Fair Value, Inputs, Level 3 | Carrying Amount      
Fair value disclosure      
Indemnifications related to the sale of the Latin American business 86 86 86
Fair Value, Inputs, Level 3 | Fair Value      
Fair value disclosure      
Indemnifications related to the sale of the Latin American business $ 86 $ 86 $ 86
v3.23.2
Fair Value of Financial Instruments - Schedule of Fair Value, Investments, Entities that Calculate Net Asset Value Per Share (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Fair value disclosure          
Gain (loss) on investments $ 2 $ 137 $ (59) $ 71  
Net Asset Value | Fair Value          
Fair value disclosure          
Investment in limited partnership $ 26   $ 26   $ 85
v3.23.2
Segment Information - Additional Information (Details)
 6 Months Ended
Jun. 30, 2023
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
v3.23.2
Segment Information - Schedule of Segment Results (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Operating revenues by products and services        
Segment revenue $ 3,661 $ 4,612 $ 7,399 $ 9,288
Cost of services and products 1,740 2,058 3,557 4,043
Selling, general and administrative 790 815 1,511 1,615
Operating Segments        
Operating revenues by products and services        
Segment revenue 3,661 4,612 7,399 9,288
Total segment adjusted EBITDA 2,260 3,003 4,557 6,118
Operating Segments | Business        
Operating revenues by products and services        
Segment revenue 2,897 3,417 5,853 6,818
Cost of services and products 746 845 1,547 1,657
Selling, general and administrative 302 313 592 635
Total segment expense 1,048 1,158 2,139 2,292
Total segment adjusted EBITDA 1,849 2,259 3,714 4,526
Operating Segments | Mass Markets        
Operating revenues by products and services        
Segment revenue 764 1,195 1,546 2,470
Cost of services and products 24 33 49 65
Selling, general and administrative 329 418 654 813
Total segment expense 353 451 703 878
Total segment adjusted EBITDA $ 411 $ 744 $ 843 $ 1,592
v3.23.2
Segment Information - Schedule of Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Segment Reporting Information [Line Items]        
Depreciation and amortization $ (746) $ (827) $ (1,479) $ (1,635)
Goodwill impairment (8,793) 0 (8,793) 0
Operating (loss) income (8,421) 912 (8,031) 1,995
Total other (expense) income, net (269) (459) 21 (741)
(Loss) income before income taxes (8,690) 453 (8,010) 1,254
Income tax expenses 46 109 215 311
Net (loss) income (8,736) 344 (8,225) 943
Operating Segments        
Segment Reporting Information [Line Items]        
Total segment adjusted EBITDA 2,260 3,003 4,557 6,118
Segment Reconciling Items        
Segment Reporting Information [Line Items]        
Depreciation and amortization (746) (827) (1,479) (1,635)
Goodwill impairment (8,793) 0 (8,793) 0
Other unallocated expense (1,133) (1,239) (2,293) (2,440)
Stock-based compensation (9) (25) (23) (48)
Operating (loss) income (8,421) 912 (8,031) 1,995
Total other (expense) income, net $ (269) $ (459) $ 21 $ (741)
v3.23.2
Commitments, Contingencies and Other Items (Details)
$ in Thousands
 1 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
Jun. 30, 2021
USD ($)
lawsuit
Feb. 28, 2017
USD ($)
lawsuit
Jun. 30, 2023
USD ($)
patent
Dec. 31, 2020
USD ($)
Loss Contingencies          
Estimate of possible loss $ 83,000     $ 83,000  
Patents allegedly infringed | patent       1  
Unfavorable Regulatory Action          
Loss Contingencies          
Estimate of possible loss 300     $ 300  
Penalties Sought for Violation of Regulations And Laws of WUTC          
Loss Contingencies          
Damages awarded $ 1,000        
Penalties for Violation of Washington Regulations and Laws Filed by Staff of WUTC          
Loss Contingencies          
Damages sought, value         $ 7,000
Penalties Sought by Washington Attorney's General Office          
Loss Contingencies          
Damages sought, value         $ 27,000
Judicial Ruling | Missouri Municipalities          
Loss Contingencies          
Number of pending lawsuits | lawsuit   1 1    
Litigation settlement amount     $ 4,000    
Judicial Ruling | Columbia and Joplin Municipalities          
Loss Contingencies          
Litigation settlement amount   $ 55,000      
v3.23.2
Other Financial Information (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Prepaid Expenses and Other Current Assets [Abstract]    
Prepaid expenses $ 456 $ 319
Income tax receivable 91 0
Materials, supplies and inventory 205 236
Contract assets 17 20
Other 5 5
Total other current assets 984 803
Other current assets, held for sale 63 59
Acquisition Costs    
Prepaid Expenses and Other Current Assets [Abstract]    
Contract costs 111 123
Fulfillment Costs    
Prepaid Expenses and Other Current Assets [Abstract]    
Contract costs $ 99 $ 100
v3.23.2
Repurchases of Lumen Common Stock (Details) - USD ($)
shares in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2023
Equity [Abstract]      
Repurchase program, period (in years)   2 years  
Repurchase program, authorized amount $ 1,300,000,000 $ 1,500,000,000 $ 1,300,000,000
Number of shares repurchased 0   0
v3.23.2
Accumulated Other Comprehensive Loss - Schedule of the Entity's Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     $ 10,437  
Other comprehensive income (loss) before reclassifications     20 $ (125)
Amounts reclassified from accumulated other comprehensive loss     26 66
Other comprehensive income (loss) $ 16 $ (170) 46 (59)
Balance at end of period 2,284 12,219 2,284 12,219
Foreign Currency Translation Adjustment and Other        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (422) (400)
Other comprehensive income (loss) before reclassifications     20 (125)
Amounts reclassified from accumulated other comprehensive loss     0 0
Other comprehensive income (loss)     20 (125)
Balance at end of period (402) (525) (402) (525)
Interest Rate Swap        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period       (17)
Other comprehensive income (loss) before reclassifications       0
Amounts reclassified from accumulated other comprehensive loss       17
Other comprehensive income (loss)       17
Balance at end of period   0   0
Accumulated Other Comprehensive Loss        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period (1,069) (2,047) (1,099) (2,158)
Other comprehensive income (loss) 16 (170) 46 (59)
Balance at end of period (1,053) (2,217) (1,053) (2,217)
Pension Plans | Defined Benefit Plan        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (985) (1,577)
Other comprehensive income (loss) before reclassifications     0 0
Amounts reclassified from accumulated other comprehensive loss     36 46
Other comprehensive income (loss)     36 46
Balance at end of period (949) (1,531) (949) (1,531)
Post-Retirement Benefit Plans | Defined Benefit Plan        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     308 (164)
Other comprehensive income (loss) before reclassifications     0 0
Amounts reclassified from accumulated other comprehensive loss     (10) 3
Other comprehensive income (loss)     (10) 3
Balance at end of period $ 298 $ (161) $ 298 $ (161)
v3.23.2
Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Reclassifications out of accumulated other comprehensive income loss by component        
Interest expense $ 294 $ 337 $ 573 $ 689
Other income (expense), net (16) 122 24 52
Total before tax 8,690 (453) 8,010 (1,254)
Income tax expense 46 109 215 311
Net (loss) income 8,736 (344) 8,225 (943)
Decrease (Increase) in Net Income | Interest rate swaps        
Reclassifications out of accumulated other comprehensive income loss by component        
Interest expense   0   22
Income tax expense   0   (5)
Net (loss) income   0   17
Decrease (Increase) in Net Income | Net actuarial loss        
Reclassifications out of accumulated other comprehensive income loss by component        
Other income (expense), net 21 30 41 67
Decrease (Increase) in Net Income | Prior service cost        
Reclassifications out of accumulated other comprehensive income loss by component        
Other income (expense), net (3) 0 (7) (1)
Decrease (Increase) in Net Income | Defined benefit plan        
Reclassifications out of accumulated other comprehensive income loss by component        
Total before tax 18 30 34 66
Income tax expense (4) (8) (8) (17)
Net (loss) income $ 14 $ 22 $ 26 $ 49
v3.23.2
Labor Union Contracts (Details) - Unionized Employees Concentration Risk
 6 Months Ended
Jun. 30, 2023
Total Number of Employees  
Concentration risk  
Concentration risk, percent (as a percent) 20.00%
Workforce Subject to Collective Bargaining Arrangements Expiring Within One Year  
Concentration risk  
Concentration risk, percent (as a percent) 2.00%