QWEST CORP, 10-Q filed on 4/30/2024
Quarterly Report
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Cover - shares
 3 Months Ended
Mar. 31, 2024
Apr. 30, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 001-03040  
Entity Registrant Name QWEST CORPORATION  
Entity Incorporation, State or Country Code CO  
Entity Tax Identification Number 84-0273800  
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 Information [Line Items]    
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   1
Entity Central Index Key 0000068622  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Amendment Flag false  
6.5% Notes Due 2056    
Entity Information [Line Items]    
Title of 12(b) Security 6.5% Notes Due 2056  
Trading Symbol(s) CTBB  
Security Exchange Name NYSE  
6.75% Notes Due 2057    
Entity Information [Line Items]    
Title of 12(b) Security 6.75% Notes Due 2057  
Trading Symbol(s) CTDD  
Security Exchange Name NYSE  
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
OPERATING REVENUE    
Total operating revenue $ 1,392 $ 1,541
OPERATING EXPENSES    
Cost of services and products (exclusive of depreciation and amortization) 370 387
Selling, general and administrative 128 128
Operating expenses—affiliates 212 191
Depreciation and amortization 187 197
Total operating expenses 897 903
OPERATING INCOME 495 638
OTHER (EXPENSE) INCOME    
Interest expense (19) (27)
Other income, net 1 1
Total other expense, net (16) (25)
INCOME BEFORE INCOME TAX EXPENSE 479 613
Income tax expense 126 159
NET INCOME 353 454
Affiliated entity    
OTHER (EXPENSE) INCOME    
Interest income - affiliate, net 2 1
Non-affiliate services    
OPERATING REVENUE    
Total operating revenue 846 981
Affiliate services    
OPERATING REVENUE    
Total operating revenue $ 546 $ 560
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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
CURRENT ASSETS    
Cash and cash equivalents $ 14 $ 10
Accounts receivable, less allowance of $38 and $34 272 261
Other 162 144
Total current assets 448 415
Property, plant and equipment, net of accumulated depreciation of $8,410 and $8,239 8,763 8,700
GOODWILL AND OTHER ASSETS    
Goodwill 6,955 6,955
Other intangible assets, net 99 103
Other, net 162 164
Total goodwill and other assets 7,216 7,222
TOTAL ASSETS 16,427 16,337
CURRENT LIABILITIES    
Current maturities of long-term debt 1 1
Accounts payable 305 362
Advances from affiliates 83 61
Accrued expenses and other liabilities    
Salaries and benefits 111 130
Income and other taxes 119 96
Other 121 121
Current portion of deferred revenue 159 162
Total current liabilities 899 933
LONG-TERM DEBT 1,941 2,156
DEFERRED CREDITS AND OTHER LIABILITIES    
Deferred income taxes, net 1,310 1,318
Other 687 679
Total deferred credits and other liabilities 2,478 2,492
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDER'S EQUITY    
Common stock - one share without par value, owned by Qwest Services Corporation 10,050 10,050
Retained earnings 1,059 706
Total stockholder's equity 11,109 10,756
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 16,427 16,337
Affiliated entity    
Accounts Payable and Accrued Liabilities, Noncurrent $ 481 $ 495
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CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowance $ 38 $ 34
PP&E, accumulated depreciation $ 8,410 $ 8,239
Common stock, share issued (in shares) 1 1
Common stock, share outstanding (in shares) 1 1
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
OPERATING ACTIVITIES    
Net income $ 353 $ 454
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 187 197
Deferred income taxes (8) (10)
Provision for uncollectible accounts 20 13
Changes in current assets and liabilities:    
Accounts receivable (30) (42)
Accounts payable (23) 6
Accrued income and other taxes 23 27
Other current assets and liabilities, net (39) (34)
Changes in other noncurrent assets and liabilities, net 7 (4)
Changes in affiliate obligations, net (14) (16)
Other, net (5) 5
Net cash provided by operating activities 471 596
INVESTING ACTIVITIES    
Capital expenditures (277) (196)
Changes in advances to affiliates 0 (402)
Proceeds from sale of property, plant and equipment and other assets 3 0
Net cash used in investing activities (274) (598)
FINANCING ACTIVITIES    
Payments of long-term debt 0 (2)
Changes in advances from affiliates (193) 0
Net cash used in financing activities (193) (2)
Net increase (decrease) in cash, cash equivalents and restricted cash 4 (4)
Cash, cash equivalents and restricted cash at beginning of period 12 10
Cash, cash equivalents and restricted cash at end of period 16 6
Supplemental cash flow information:    
Income taxes paid, net (126) (161)
Interest paid, including affiliate interest (net of capitalized interest of $19 and $10) (21) (30)
Repayment of long-term debt in exchange for advances from affiliates 215 0
Cash, cash equivalents and restricted cash:    
Cash and cash equivalents 14 4
Restricted cash - noncurrent 2 2
Total $ 16 $ 6
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Cash Flows [Abstract]    
Interest paid, capitalized interest $ 19 $ 10
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CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (UNAUDITED) - USD ($)
$ in Millions
Total
COMMON STOCK
RETAINED EARNINGS
Balance at beginning of period at Dec. 31, 2022   $ 10,050 $ 3,517
Increase (Decrease) in Stockholder's Equity      
Net income     454
Balance at end of period at Mar. 31, 2023 $ 14,021 10,050 3,971
Balance at beginning of period at Dec. 31, 2023 10,756 10,050 706
Increase (Decrease) in Stockholder's Equity      
Net income     353
Balance at end of period at Mar. 31, 2024 $ 11,109 $ 10,050 $ 1,059
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Background
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Background Background
General

We are a facilities-based technology and communications company that provides a broad array of integrated communications products and services to our business and mass markets customers. Our specific products and services are detailed in Note 3—Revenue Recognition of this report.

We generate the majority of our total consolidated operating revenue from services provided in the 14-state region of Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. We refer to this region as our local service area.

Basis of Presentation

Our consolidated balance sheet as of December 31, 2023, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations and cash flows for the first three months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated. Transactions with our non-consolidated affiliates (Lumen Technologies and its other subsidiaries, referred to herein as affiliates) have not been eliminated.

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

We reclassified certain prior period amounts to conform to the current period presentation, including our revenue by product and service categories. See Note 3—Revenue Recognition for additional information. These changes had no impact on total operating revenue, total operating expenses or net income for any period.
During 2023, we identified errors in our previously reported consolidated financial statements related to accounts receivable and accounts payable. The errors are the result of understated revenues from one of our legacy mainframe billing systems and understated network expenses for periods prior to 2021.We have recorded an increase to our retained earnings by $13 million, reflected in our January 1, 2023 and March 31, 2023 retained earnings in our consolidated statements of stockholders' equity herein. Please refer to 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, 2023 for more information.

Segments

Our operations are integrated into and reported as part of Lumen Technologies. Lumen's chief operating decision maker ("CODM") is our CODM but reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the SEC. Consequently, we do not provide our discrete financial information to the CODM on a regular basis. As such, we have one reportable segment.

Change in Accounting Estimates

Effective January 1, 2024, we changed our method of depreciation and amortization for incumbent local exchange carrier ("ILEC") and certain competitive local exchange carriers ("CLEC") fixed assets from the group method of depreciation to straight line by individual asset method. Historically, we have used the group method of depreciation for the property, plant and equipment and amortization of certain intangible capitalized software assets of our ILECs and certain CLECs. Under the group method, all like kind assets were combined into common pools and depreciated under composite depreciation rates. Recent business divestitures by our parent company and asset sales have significantly reduced our composite asset base. We believe the straight-line depreciation method for individual assets is preferable to the group method as it will result in a more precise estimate of depreciation expense and will result in a consistent depreciation method for all our subsidiaries. This change in the method of depreciation and amortization is considered a change in accounting estimate inseparable from a change in accounting principle. The change in accounting estimate decreased depreciation and amortization expense $24 million, $18 million net of tax from continuing operations for the quarter ended March 31, 2024.

Additionally, during the first quarter of 2024, we updated our analysis of economic lives of owned fiber network assets. As of January 1, 2024, we extended the estimated economic life and depreciation period of such assets from 25 years to 30 years to better reflect the physical life of the assets that we have experienced and absence of technological changes that would replace fiber. The change in accounting estimate decreased depreciation expense approximately $6 million, $5 million net of tax, from continuing operations for the quarter ended March 31, 2024.

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, 2023.

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 any 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.

Adoption of Other ASU With No Impact

As of March 31, 2024, we adopted ASU 2023-01, “Leases (Topic 842): Common Control Arrangements”, and ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The adoption of these ASU did not have any impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). This ASU requires that public business entities must annually (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate).” ASU 2023-09 will become effective for us in the annual period of fiscal year 2025 and early adoption is permitted. As of March 31, 2024, we are evaluating its impact on our consolidated financial statements, including our annual disclosure within our Income Taxes note.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). This ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU will become effective for us in annual period fiscal 2024 and early adoption is permitted. As of March 31, 2024, we do not expect ASU 2023-07 will have any impact to our consolidated financial statements.
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Goodwill, Customer Relationships and Other Intangible Assets
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill, Customer Relationships and Other Intangible Assets Goodwill, Customer Relationships and Other Intangible Assets
Goodwill, customer relationships and other intangible assets consisted of the following:
March 31, 2024December 31, 2023
(Dollars in millions)
Goodwill$6,955 6,955 
Other intangible assets, less accumulated amortization of $1,958 and $1,966
$99 103 

Substantially all of our goodwill was derived from Lumen's acquisition of us where the purchase price exceeded the fair value of the net assets acquired.

We are required to assess our goodwill 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 our reporting unit exceeds its fair value. Our annual impairment assessment date for goodwill is October 31, at which date we assess goodwill at our reporting unit. In reviewing the criteria for reporting units, we have determined that we are one reporting unit.

As of March 31, 2024, the gross carrying amount of goodwill, customer relationships and other intangible assets was $9.0 billion. The amortization expense for finite-lived intangible assets for the three months ended March 31, 2024 and 2023 totaled $13 million and $17 million, respectively.
We estimate that total amortization expense for intangible assets for the years ending December 31, 2024 through 2028 will be as follows:
(Dollars in millions)
2024 (remaining nine months)$25 
202526 
202615 
202711 
20288 
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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We categorize our revenue derived from our operations serving our mass markets customers, primarily within the first three categories listed below, and our revenue derived from our operations servicing our business customers, primarily in the 'Harvest', 'Nurture' and 'Grow' categories listed below:
•Other Broadband, under which we provide primarily lower speed broadband services to residential and small business customers utilizing our copper-based network infrastructure;

•Voice and Other, under which we derive revenues from (i) providing local and long-distance services, professional services, and other ancillary services, (ii) federal broadband and state support payments, and (iii) equipment, IT solutions and other services;

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

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

•Nurture, which includes our more mature offerings, including primarily ethernet;

•Grow, which includes products and services that we anticipate will grow, including dark fiber and wavelengths services; and

•Affiliate Services, which are (i) communications services that we provide to our affiliates and also provide to external customers and (ii) application development and support services and other support services that we provide to our affiliates, as described further in Note 7—Affiliate Transactions.

Reconciliation of Total Revenue to Revenue from Contracts with Customers

The following table provides our total revenue by product and service category as well as the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
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)
Other Broadband$252 (21)231 293 (25)268 
Voice and Other133 (4)129 156 (4)152 
Fiber Broadband99 (3)96 122 (3)119 
Harvest239 (32)207 267 (37)230 
Nurture89 (2)87 105 (2)103 
Grow34 — 34 38 — 38 
Affiliate Services546 (12)534 560 (11)549 
Total revenue$1,392 (74)1,318 1,541 (82)1,459 
____________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

Operating Lease Revenue

Qwest leases various data transmission capacity, office facilities, switching facilities and other network sites to third parties under operating leases. Lease and sublease revenue are included in operating revenue in our consolidated statements of operations.

For the three months ended March 31, 2024 and 2023, our gross rental income was $71 million and $80 million, respectively, which represents approximately 5% of our operating revenue for both periods.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
 (Dollars in millions)
Customer receivables (1)
$252 210 
Contract assets7 7 
Contract liabilities261 269 
______________________________________________________________________
(1)Reflects gross customer receivables, including gross affiliate receivables, of $285 million and $239 million, net of allowance for credit losses of $33 million and $29 million, at March 31, 2024 and December 31, 2023, respectively.

Contract liabilities consist of consideration we have received from our customers or billed in advance of providing goods or services promised in the future. We defer recognizing this consideration as revenue until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which typically ranges from one to five years depending on the service. Contract liabilities are included within deferred revenue in our consolidated balance sheets. During the three months ended March 31, 2024 and 2023, we recognized $135 million and $139 million, respectively, of revenue that was included in contract liabilities of $269 million and $343 million as of January 1, 2024 and January 1, 2023, respectively.
Performance Obligations

As of March 31, 2024, we expect to recognize approximately $1.8 billion of revenue in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied. As of March 31, 2024, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2024, 2025 and thereafter was $649 million, $594 million and $566 million, 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), and (ii) contracts that are classified as leasing arrangements that are not subject to ASC 606.

Contract Costs

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

Three Months Ended March 31, 2024Three Months Ended March 31, 2023
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)
Beginning Balance$58 $46 61 $46 
Cost incurred10 10 9 10 
Amortization(11)(9)(12)(10)
Ending Balances$57 47 58 46 

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 communications 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 50 months for mass markets customers and average contract life of 35 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 12 months is included in other non-current assets on our consolidated balance sheets. Deferred acquisition and fulfillment costs are assessed for impairment on a quarterly basis.
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Credit Losses on Financial Instruments
 3 Months Ended
Mar. 31, 2024
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 three months ended March 31, 2024:
BusinessMass MarketsTotal
(Dollars in millions)
As of December 31, 2023$14 20 34 
Provision for expected losses8 12 20 
Write-offs charged against the allowance(5)(12)(17)
Recoveries collected— 1 1 
Ending balance at March 31, 2024$17 21 38 
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Long-Term Debt and Note Payable - Affiliate
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Long-Term Debt and Note Payable - Affiliate Long-Term Debt and Note Payable - Affiliate
On March 22, 2024 Qwest Corporation, Lumen Technologies, Inc ("Lumen"), Level 3 Financing, Inc. ("Level 3"), and a group of creditors holding a majority of Lumen's consolidated debt (the "Consenting Debtholders" and, collectively with Qwest Corporation, Lumen and Level 3, the "Transaction Service Agreement ("TSA") Parties") completed transactions contemplated under the amended and restated transaction support agreement that the TSA Parties entered into on January 22, 2024 (the "TSA Transactions"). For detailed information about all transactions completed under the TSA, please see Note 5—Long-Term Debt and Credit Facilities to the financial statements included in Item 1 of Part I of Lumen’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. The TSA Transactions, as they relate specifically to Qwest, include the following:

•Qwest Corporation and certain of its subsidiaries (the “Qwest Guarantors”) agreed to guarantee Lumen’s obligations under its new credit agreements and superiority secured notes, as further described below; and

•Qwest Corporation retired its term loan maturing in 2027, repaid by an affiliate.
The following chart reflects the consolidated long-term debt of Qwest Corporation and its subsidiaries, including finance lease and other obligations, unamortized premiums, net and unamortized debt issuance costs:
Interest Rates (1)
Maturities (1)
March 31, 2024December 31, 2023
   (Dollars in millions)
Senior notes
6.500% - 7.750%
2025 - 2057$1,986 1,986 
Term loan (2)
 SOFR + 2.50%
2027— 215 
Finance lease and other obligationsVariousVarious4 4 
Unamortized premiums, net  3 4 
Unamortized debt issuance costs(51)(52)
Total long-term debt  $1,942 2,157 
Less current maturities(1)(1)
Long-term debt, excluding current maturities$1,941 2,156 
_______________________________________________________________________________
(1)As of March 31, 2024.
(2)The Term Loan had an interest rate of 7.970% as of December 31, 2023.

Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of March 31, 2024 (excluding unamortized premiums, net, unamortized debt issuance costs and note payable-affiliate) maturing during the following years:
(Dollars in millions)
2024 (remaining nine months)$— 
2025251 
20261 
20271 
2028— 
2029 and thereafter1,737 
Total long-term debt$1,990 

Impact of Debt Transactions

Consummation of the above-described TSA Transactions substantially changed the structure and terms of Lumen's consolidated long-term debt, including by repaying our term loan maturing 2027 and causing the Qwest Guarantors to guarantee certain of Lumen’s debt.

For additional information about the TSA Transactions, see (i) the other information included in this report and (ii) our Current Report on Form 8-K dated March 22, 2024.

Qwest Guarantees of Lumen Debt

Lumen’s obligations under its new credit agreements entered into on March 22, 2024 and its new superpriority secured senior notes issued on March 22, 2024 are unsecured, but the Qwest Guarantors have provided an unconditional unsecured guarantee of payment of Lumen’s obligations under these agreements and senior notes.

Senior Notes and Intercompany Debt

For information about our senior notes and intercompany debt arrangement, see Note 6—Long-Term Debt and Note Payable—Affiliate to the financial statements included in Item 8 of Part II of Qwest’s Annual Report on Form 10-K for the year ended December 31, 2023.
Compliance

As of March 31, 2024, we believe we were in compliance with the financial covenants contained in our material debt agreements in all material respects.
v3.24.1.u1
Fair Value Disclosure
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Disclosure Fair Value of Financial Instruments
Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, advances to and from affiliates, accounts payable, note payable-affiliate and long-term debt, excluding finance lease and other obligations. Due to their short-term nature, the carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, advances to and from affiliates, accounts payable and note payable-affiliate 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 financial liabilities as of March 31, 2024 and December 31, 2023, as well as the input level used to determine the fair values indicated below:
  March 31, 2024December 31, 2023
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
  (Dollars in millions)
Liabilities—Long-term debt (excluding finance lease and other obligations)2$1,938 925 2,153 1,162 
v3.24.1.u1
Commitments, Contingencies and Other Items
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments, 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 March 31, 2024 we had accrued $16 million in the aggregate for our litigation and non-income tax contingencies, which is included in other current liabilities or other liabilities in 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 $16 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.

Principal Proceedings

Billing Practices Suits

In June 2017, a former employee of a Lumen Technologies subsidiary filed an employment lawsuit against Lumen Technologies (at the time named CenturyLink, Inc.) claiming that she was wrongfully terminated for alleging that Lumen charged some of its 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. Lumen Technologies has settled the consumer and securities investor class actions, and the derivative actions.

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

Huawei Network Deployment Investigations

Lumen has received requests from the following federal agencies for information relating to the use of equipment manufactured by Huawei Technologies Company ("Huawei") in networks operated by Lumen and Qwest.

•DOJ. Lumen has received a civil investigative demand from the U.S. Department of Justice in the course of a False Claims Act investigation alleging that Lumen Technologies, Inc. and Lumen Technologies Government Solutions, Inc. failed to comply with certain specified requirements in federal contracts concerning their use of Huawei equipment. 
•FCC. The FCC’s Enforcement Bureau issued a Letter of Inquiry to Lumen Technologies, Inc. regarding its written certifications to the FCC that Lumen has complied with FCC rules governing the use of resources derived from the High Cost Program, Lifeline Program, Rural Health Care Program, E-Rate Program, Emergency Broadband Benefit Program, and the Affordable Connectivity Program. Under these programs federal, funds may not be used to facilitate the deployment or maintenance of equipment or services provided by Huawei, a company the FCC has determined poses a national security threat to the integrity of U.S. communications networks or the communications supply chain.

•Team Telecom. The Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector (comprised of the U.S. Attorney General, and the Secretaries of the Department of Homeland Security, and the Department of Defense), commonly referred to as Team Telecom, issued questions and requests for information relating to Lumen’s FCC licenses and its use of Huawei equipment.

Lumen and Qwest are cooperating with the investigations.

Marshall Fire Litigation.

On December 30, 2021, a wildfire referred to as the Marshall Fire ignited near Boulder, Colorado. The Marshall Fire killed two people, and it burned thousands of acres, including entire neighborhoods. Approximately 300 lawsuits naming various defendants and asserting various claims for relief have been filed. To date, three of those name Qwest Corporation as being at fault: Allstate Fire and Casualty Insurance Company, et al., v. Qwest Corp., et al., Case No. 2023-cv-3048, and Wallace, et al. v. Qwest Corp., et al., Case No. 2023-cv-30488, both of which have been consolidated with Kupfner, et al., v. Public Service Company of Colorado, et al., Case No. 2022-cv-30195. The consolidated proceeding is pending in Colorado District Court, Boulder, Colorado, Preliminary estimates of potential damage claims $2 billion. Qwest is vigorously defending the claims.

911 Surcharge

In June 2021, the Company was served with a complaint filed in the Santa Fe County District Court by Phone Recovery Services, LLC (“PRS”), acting on behalf of the State of New Mexico. The complaint claims Qwest Corporation and CenturyTel of the Southwest have violated the New Mexico Fraud Against Taxpayers Act since 2004 by failing to bill, collect and remit certain 911 surcharges from customers. Through pre-trial proceedings, the Court has narrowed the issues to be resolved by jury, ruling that Lumen bears the burden of proving that its actions were reasonable or known and approved by the State. Qwest is defending the New Mexico claims vigorously, as it has done successfully with other 911 claims involving PRS in other states.

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, tax issues, or environmental law issues, grievance hearings before labor regulatory agencies, 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 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 had installed lead-sheathed cables several decades earlier, or had operated certain manufacturing companies in the first part of the 1900s. Under applicable environmental laws, we could be named as a potentially responsible party for a share of the remediation of environmental conditions 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 14—Commitments, Contingencies and Other Items to the financial statements included in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023. 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.
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Dividends
 3 Months Ended
Mar. 31, 2024
Dividends [Abstract]  
Dividends Dividends
From time to time we may declare and pay dividends to our direct parent company, QSC, sometimes in excess of our earnings to the extent permitted by applicable law. Our debt covenants do not currently limit the amount of dividends we can pay to QSC.

During the three months ended March 31, 2024 and March 31, 2023, we declared and paid no dividends to QSC. Dividends paid, when applicable, are reflected on our consolidated statements of cash flows as financing activities.
v3.24.1.u1
Other Financial Information
 3 Months Ended
Mar. 31, 2024
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 on our consolidated balance sheets:

March 31, 2024December 31, 2023
(Dollars in millions)
Prepaid expenses$67 48
Contract acquisition costs33 34
Contract fulfillment costs29 28
Assets held for sale29 29
Other4 5
Total other current assets$162 144

Other Current Liabilities

The following table presents details of other current liabilities on our consolidated balance sheets:

March 31, 2024December 31, 2023
(Dollars in millions)
Current affiliate obligation$52 52 
Current operating lease liability19 20 
Other50 49 
Total other current liabilities$121 121 

Other Noncurrent Liabilities

The following table presents details of other noncurrent liabilities on our consolidated balance sheets:

March 31, 2024December 31, 2023
(Dollars in millions)
Unrecognized tax benefits$451 442
Noncurrent operating lease liability47 47
Other189 190
Total other noncurrent liabilities$687 679
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Labor Union Contracts
 3 Months Ended
Mar. 31, 2024
Risks and Uncertainties [Abstract]  
Labor Union Contracts Labor Union Contracts
    
As of March 31, 2024, approximately 42% of our employees were represented by the Communications Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW"). 1% of our represented employees are subject to collective bargaining agreements that are scheduled to expire within the twelve-month period ending March 31, 2025. We believe relations with our employees continue to be generally good.
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Background (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

Our consolidated balance sheet as of December 31, 2023, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations and cash flows for the first three months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries. Intercompany amounts and transactions with our consolidated subsidiaries have been eliminated. Transactions with our non-consolidated affiliates (Lumen Technologies and its other subsidiaries, referred to herein as affiliates) have not been eliminated.
Segments
Segments
Our operations are integrated into and reported as part of Lumen Technologies. Lumen's chief operating decision maker ("CODM") is our CODM but reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the SEC. Consequently, we do not provide our discrete financial information to the CODM on a regular basis.
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 any 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.

Adoption of Other ASU With No Impact

As of March 31, 2024, we adopted ASU 2023-01, “Leases (Topic 842): Common Control Arrangements”, and ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The adoption of these ASU did not have any impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). This ASU requires that public business entities must annually (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate).” ASU 2023-09 will become effective for us in the annual period of fiscal year 2025 and early adoption is permitted. As of March 31, 2024, we are evaluating its impact on our consolidated financial statements, including our annual disclosure within our Income Taxes note.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). This ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU will become effective for us in annual period fiscal 2024 and early adoption is permitted. As of March 31, 2024, we do not expect ASU 2023-07 will have any impact to our consolidated financial statements.
Goodwill
We are required to assess our goodwill 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 our reporting unit exceeds its fair value. Our annual impairment assessment date for goodwill is October 31, at which date we assess goodwill at our reporting unit. In reviewing the criteria for reporting units, we have determined that we are one reporting unit.
Operating Lease Revenue
Operating Lease Revenue

Qwest leases various data transmission capacity, office facilities, switching facilities and other network sites to third parties under operating leases. Lease and sublease revenue are included in operating revenue in our consolidated statements of operations.
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Goodwill, Customer Relationships and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
Goodwill, customer relationships and other intangible assets consisted of the following:
March 31, 2024December 31, 2023
(Dollars in millions)
Goodwill$6,955 6,955 
Other intangible assets, less accumulated amortization of $1,958 and $1,966
$99 103 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
We estimate that total amortization expense for intangible assets for the years ending December 31, 2024 through 2028 will be as follows:
(Dollars in millions)
2024 (remaining nine months)$25 
202526 
202615 
202711 
20288 
v3.24.1.u1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue
The following table provides our total revenue by product and service category as well as the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
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)
Other Broadband$252 (21)231 293 (25)268 
Voice and Other133 (4)129 156 (4)152 
Fiber Broadband99 (3)96 122 (3)119 
Harvest239 (32)207 267 (37)230 
Nurture89 (2)87 105 (2)103 
Grow34 — 34 38 — 38 
Affiliate Services546 (12)534 560 (11)549 
Total revenue$1,392 (74)1,318 1,541 (82)1,459 
____________________________________________________________
(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.
Customer Receivables and Contract Balances
The following table provides balances of customer receivables, contract assets and contract liabilities as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
 (Dollars in millions)
Customer receivables (1)
$252 210 
Contract assets7 7 
Contract liabilities261 269 
______________________________________________________________________
(1)Reflects gross customer receivables, including gross affiliate receivables, of $285 million and $239 million, net of allowance for credit losses of $33 million and $29 million, at March 31, 2024 and December 31, 2023, respectively.
Contract Costs
The following tables provide changes in our contract acquisition costs and fulfillment costs:

Three Months Ended March 31, 2024Three Months Ended March 31, 2023
Acquisition CostsFulfillment CostsAcquisition CostsFulfillment Costs
(Dollars in millions)
Beginning Balance$58 $46 61 $46 
Cost incurred10 10 9 10 
Amortization(11)(9)(12)(10)
Ending Balances$57 47 58 46 
v3.24.1.u1
Credit Losses on Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Credit Loss [Abstract]  
Financing Receivable, Allowance for Credit Loss
The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the three months ended March 31, 2024:
BusinessMass MarketsTotal
(Dollars in millions)
As of December 31, 2023$14 20 34 
Provision for expected losses8 12 20 
Write-offs charged against the allowance(5)(12)(17)
Recoveries collected— 1 1 
Ending balance at March 31, 2024$17 21 38 
v3.24.1.u1
Long-Term Debt and Note Payable - Affiliate (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
The following chart reflects the consolidated long-term debt of Qwest Corporation and its subsidiaries, including finance lease and other obligations, unamortized premiums, net and unamortized debt issuance costs:
Interest Rates (1)
Maturities (1)
March 31, 2024December 31, 2023
   (Dollars in millions)
Senior notes
6.500% - 7.750%
2025 - 2057$1,986 1,986 
Term loan (2)
 SOFR + 2.50%
2027— 215 
Finance lease and other obligationsVariousVarious4 4 
Unamortized premiums, net  3 4 
Unamortized debt issuance costs(51)(52)
Total long-term debt  $1,942 2,157 
Less current maturities(1)(1)
Long-term debt, excluding current maturities$1,941 2,156 
_______________________________________________________________________________
(1)As of March 31, 2024.
(2)The Term Loan had an interest rate of 7.970% as of December 31, 2023.
Schedule of Maturities of Long-Term Debt
Set forth below is the aggregate principal amount of our long-term debt as of March 31, 2024 (excluding unamortized premiums, net, unamortized debt issuance costs and note payable-affiliate) maturing during the following years:
(Dollars in millions)
2024 (remaining nine months)$— 
2025251 
20261 
20271 
2028— 
2029 and thereafter1,737 
Total long-term debt$1,990 
v3.24.1.u1
Fair Value Disclosure (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amounts and Estimated Fair Values
The following table presents the carrying amounts and estimated fair values of our financial liabilities as of March 31, 2024 and December 31, 2023, as well as the input level used to determine the fair values indicated below:
  March 31, 2024December 31, 2023
 Input
Level		Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
  (Dollars in millions)
Liabilities—Long-term debt (excluding finance lease and other obligations)2$1,938 925 2,153 1,162 
v3.24.1.u1
Other Financial Information (Tables)
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Current Assets
The following table presents details of other current assets on our consolidated balance sheets:

March 31, 2024December 31, 2023
(Dollars in millions)
Prepaid expenses$67 48
Contract acquisition costs33 34
Contract fulfillment costs29 28
Assets held for sale29 29
Other4 5
Total other current assets$162 144
Schedule of Other Current Liabilities
The following table presents details of other current liabilities on our consolidated balance sheets:

March 31, 2024December 31, 2023
(Dollars in millions)
Current affiliate obligation$52 52 
Current operating lease liability19 20 
Other50 49 
Total other current liabilities$121 121 
Schedule of Other Noncurrent Liabilities
The following table presents details of other noncurrent liabilities on our consolidated balance sheets:

March 31, 2024December 31, 2023
(Dollars in millions)
Unrecognized tax benefits$451 442
Noncurrent operating lease liability47 47
Other189 190
Total other noncurrent liabilities$687 679
v3.24.1.u1
Accounting Policies - General (Details)
Mar. 31, 2024
state
Accounting Policies [Abstract]  
Number of states in which entity operates 14
v3.24.1.u1
Accounting Policies- Segments (Details)
 3 Months Ended
Mar. 31, 2024
segment
Accounting Policies [Abstract]  
Number of reportable segments 1
v3.24.1.u1
Background - Change in Accounting Estimates and Correction of Immaterial Errors (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Jan. 01, 2024
Dec. 31, 2023
Jan. 01, 2023
Change in Accounting Estimate [Line Items]        
Retained earnings $ 1,059   $ 706  
Fiber Network Assets        
Change in Accounting Estimate [Line Items]        
Property, Plant and Equipment, Useful Life   30 years 25 years  
Fiber Network Assets | Change in Accounting Method Accounted for as Change in Estimate        
Change in Accounting Estimate [Line Items]        
Depreciation (6)      
Depreciation, Net Of Tax (5)      
Competitive Local Exchange Carriers Fixed Assets | Change in Accounting Method Accounted for as Change in Estimate        
Change in Accounting Estimate [Line Items]        
Depreciation 24      
Depreciation, Net Of Tax $ 18      
Correction Of Error From Understatement Of Revenues And Network Expenses Prior To 2021        
Change in Accounting Estimate [Line Items]        
Retained earnings       $ 13
v3.24.1.u1
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Goodwill $ 6,955 $ 6,955
Other Intangible Assets    
Finite-Lived Intangible Assets [Line Items]    
Other intangible assets, less accumulated amortization 99 103
Accumulated amortization $ 1,958 $ 1,966
v3.24.1.u1
Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
reporting_unit
Mar. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]    
Number of reporting units | reporting_unit 1  
Intangible assets, gross (including goodwill) $ 9,000  
Amortization of intangible assets $ 13 $ 17
v3.24.1.u1
Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Future Amortization Expense (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 (remaining nine months) $ 25
2025 26
2026 15
2027 11
2028 $ 8
v3.24.1.u1
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Total Revenue $ 1,392 $ 1,541
Adjustments for non-ASC 606 revenue (74) (82)
Total Revenue from Contracts with Customers 1,318 1,459
Nurture    
Disaggregation of Revenue [Line Items]    
Total Revenue 89 105
Adjustments for non-ASC 606 revenue (2) (2)
Total Revenue from Contracts with Customers 87 103
Grow    
Disaggregation of Revenue [Line Items]    
Total Revenue 34 38
Adjustments for non-ASC 606 revenue 0 0
Total Revenue from Contracts with Customers 34 38
Harvest    
Disaggregation of Revenue [Line Items]    
Total Revenue 239 267
Adjustments for non-ASC 606 revenue (32) (37)
Total Revenue from Contracts with Customers 207 230
Fiber Broadband    
Disaggregation of Revenue [Line Items]    
Total Revenue 99 122
Adjustments for non-ASC 606 revenue (3) (3)
Total Revenue from Contracts with Customers 96 119
Voice and Other    
Disaggregation of Revenue [Line Items]    
Total Revenue 133 156
Adjustments for non-ASC 606 revenue (4) (4)
Total Revenue from Contracts with Customers 129 152
Other Broadband    
Disaggregation of Revenue [Line Items]    
Total Revenue 252 293
Adjustments for non-ASC 606 revenue (21) (25)
Total Revenue from Contracts with Customers 231 268
Affiliate Services    
Disaggregation of Revenue [Line Items]    
Total Revenue 546 560
Adjustments for non-ASC 606 revenue (12) (11)
Total Revenue from Contracts with Customers $ 534 $ 549
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Revenue Recognition - Operating Lease Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]    
Lease income $ 71 $ 80
Percent of operating revenue 5.00% 5.00%
v3.24.1.u1
Revenue Recognition - Customer Receivables and Contract Balances (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Jan. 01, 2023
Jan. 01, 2022
Revenue from Contract with Customer [Abstract]        
Customer receivables $ 252 $ 210    
Contract assets 7 7    
Contract liabilities 261 269 $ 269 $ 343
Gross affiliate receivables 285 239    
Allowance for credit losses $ 33 $ 29    
v3.24.1.u1
Revenue Recognition - Additional Information, Contract Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Jan. 01, 2023
Jan. 01, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue recognized from prior year contract liability $ 135 $ 139      
Contract liabilities $ 261   $ 269 $ 269 $ 343
Minimum          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Contract term 1 year        
Maximum          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Contract term 5 years        
Weighted Average | Mass Markets Customers, Average Contract Life          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Length of customer life 50 months        
Weighted Average | Business Customer, Average Contract Life          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Length of customer life 35 months        
v3.24.1.u1
Revenue Recognition - Additional Information, Performance Obligation (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 1,800
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation 1,800
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 649
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Expected timing of satisfaction, period 9 months
Remaining performance obligation $ 649
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 594
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Expected timing of satisfaction, period 1 year
Remaining performance obligation $ 594
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 566
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Expected timing of satisfaction, period 3 years
Remaining performance obligation $ 566
v3.24.1.u1
Revenue Recognition - Contract Costs (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Acquisition Costs    
Capitalized Contract Cost [Line Items]    
Beginning Balance $ 58 $ 61
Cost incurred 10 9
Amortization (11) (12)
Ending Balances 57 58
Fulfillment Costs    
Capitalized Contract Cost [Line Items]    
Beginning Balance 46 46
Cost incurred 10 10
Amortization (9) (10)
Ending Balances $ 47 $ 46
v3.24.1.u1
Credit Losses on Financial Instruments (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Financing Receivable, Allowance for Credit Loss  
Beginning balance $ 34
Provision for expected losses 20
Write-offs charged against the allowance (17)
Ending balance 38
Recoveries collected 1
Business Portfolio  
Financing Receivable, Allowance for Credit Loss  
Beginning balance 14
Provision for expected losses 8
Write-offs charged against the allowance (5)
Ending balance 17
Recoveries collected 0
Mass Market Portfolio  
Financing Receivable, Allowance for Credit Loss  
Beginning balance 20
Provision for expected losses 12
Write-offs charged against the allowance (12)
Ending balance 21
Recoveries collected $ 1
v3.24.1.u1
Long-Term Debt and Note Payable - Affiliate - Schedule of Long Term Debt (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Long-term debt    
Unamortized premiums, net $ 3 $ 4
Unamortized debt issuance costs (51) (52)
Total long-term debt 1,942 2,157
Less current maturities (1) (1)
Long-term debt, excluding current maturities 1,941 2,156
Senior notes    
Long-term debt    
Long-term debt, gross $ 1,986 1,986
Senior notes | Minimum    
Long-term debt    
Stated interest rate 6.50%  
Senior notes | Maximum    
Long-term debt    
Stated interest rate 7.75%  
Term loan    
Long-term debt    
Long-term debt, gross $ 0 $ 215
Weighted average interest rate   7.97%
Term loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate    
Long-term debt    
Basis spread on variable rate 2.50%  
Finance lease and other obligations    
Long-term debt    
Long-term debt, gross $ 4 $ 4
v3.24.1.u1
Long-Term Debt and Note Payable - Affiliate - Schedule of Debt Maturity (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Debt Disclosure [Abstract]  
2024 (remaining nine months) $ 0
2025 251
2026 1
2027 1
2028 0
2029 and thereafter 1,737
Total long-term debt $ 1,990
v3.24.1.u1
Fair Value Disclosure (Details) - Fair value measurements, nonrecurring - Fair value inputs, Level 2 - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Carrying Amount    
Fair Value Disclosure    
Liabilities—Long-term debt (excluding finance lease and other obligations) $ 1,938 $ 2,153
Fair Value    
Fair Value Disclosure    
Liabilities—Long-term debt (excluding finance lease and other obligations) $ 925 $ 1,162
v3.24.1.u1
Related Party Disclosures (Details) - Affiliated entity - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Direct Revenue From Related Party    
Related Party Transaction [Line Items]    
Related Party Transaction, Amounts of Transaction $ 401 $ 427
Allocated Revenue    
Related Party Transaction [Line Items]    
Related Party Transaction, Amounts of Transaction $ 145 $ 133
v3.24.1.u1
Commitments, Contingencies and Other Items (Details)
 3 Months Ended
Mar. 31, 2024
USD ($)
patent
Loss Contingencies [Line Items]  
Estimate of possible loss $ 16,000,000
Number of patent infringement lawsuits expected to go to trial within the next twelve months | patent 1
Unfavorable Regulatory Action  
Loss Contingencies [Line Items]  
Estimate of possible loss $ 300,000
v3.24.1.u1
Other Financial Information- Other Current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 67 $ 48
Contract acquisition costs 33 34
Contract fulfillment costs 29 28
Assets held for sale 29 29
Other 4 5
Total other current assets $ 162 $ 144
v3.24.1.u1
Other Financial Information - Other Current Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Current operating lease liability $ 19 $ 20
Other 50 49
Total other current liabilities 121 121
Accrued Liabilities, Current $ 52 $ 52
v3.24.1.u1
Other Financial Information - Other Noncurrent Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Unrecognized tax benefits $ 451 $ 442
Noncurrent operating lease liability 47 47
Other 189 190
Total other noncurrent liabilities $ 687 $ 679
v3.24.1.u1
Labor Union Contracts (Details) - Union employees concentration risk
 3 Months Ended
Mar. 31, 2024
Employees covered under collective bargaining agreements  
Labor Union Contracts  
Concentration risk percentage 42.00%
Workforce Subject to Collective-Bargaining Arrangements Expiring within One Year  
Labor Union Contracts  
Concentration risk percentage 1.00%
v3.24.1.u1
Subsequent Events (Details) - Employee Severance - Workforce Reduction - USD ($)
 1 Months Ended
Apr. 30, 2024
Mar. 31, 2024
Subsequent Event [Line Items]    
Restructuring Reserve   $ 0
Subsequent Event    
Subsequent Event [Line Items]    
Restructuring And Related Cost, Percentage Of Positions To Be Eliminated 7.00%  
Subsequent Event | Minimum    
Subsequent Event [Line Items]    
Restructuring and Related Cost, Expected Cost $ 20,000,000  
Subsequent Event | Maximum    
Subsequent Event [Line Items]    
Restructuring and Related Cost, Expected Cost $ 30,000,000