Document and Entity Information

6 Months Ended

Jun. 30, 2014

Aug. 8, 2014

Document and Entity Information

Entity Registrant Name

QWEST CORP

Entity Central Index Key

0000068622

Current Fiscal Year End Date

--12-31

Entity Filer Category

Non-accelerated Filer

Entity Current Reporting Status

Yes

Document Type

10-Q

Document Period End Date

Jun. 30, 2014

Document Fiscal Year Focus

2014

Document Fiscal Period Focus

Q2

Amendment Flag

false

Entity Common Stock, Shares Outstanding

1

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

OPERATING REVENUES

Operating revenues

$ 1,682

$ 1,703

$ 3,372

$ 3,426

Operating revenues-affiliates

524

496

1,045

932

Total operating revenues

2,206

2,199

4,417

4,358

OPERATING EXPENSES

Cost of services and products (exclusive of depreciation and amortization)

698

690

1,396

1,335

Selling, general and administrative

274

270

559

539

Operating expenses-affiliates

188

185

376

347

Depreciation and amortization

500

529

998

1,059

Total operating expenses

1,660

1,674

3,329

3,280

OPERATING INCOME

546

525

1,088

1,078

OTHER INCOME (EXPENSE)

Interest expense

(116)

(112)

(232)

(220)

Interest expense-affiliate

(12)

(25)

(28)

Other income

0

1

Total other income (expense)

(128)

(124)

(257)

(247)

INCOME BEFORE INCOME TAX EXPENSE

418

401

831

Income tax expense

162

155

322

321

NET INCOME

$ 256

$ 246

$ 509

$ 510

CONSOLIDATED BALANCE SHEETS (USD $)

In Millions, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

CURRENT ASSETS

Cash and cash equivalents

$ 10

$ 14

Accounts receivable, less allowance of $37 and $43

740

738

Advances to affiliates

566

712

Deferred income taxes, net

165

161

Other

141

126

Total current assets

1,622

1,751

NET PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment

10,602

10,193

Accumulated depreciation

(3,481)

(2,985)

Net property, plant and equipment

7,121

7,208

GOODWILL AND OTHER ASSETS

Goodwill

9,354

Customer relationships, less accumulated amortization of $2,342 and $2,012

3,357

3,687

Other intangible assets, less accumulated amortization of $1,103 and $994

912

1,008

Other

203

210

Total goodwill and other assets

13,826

14,259

TOTAL ASSETS

22,569

23,218

CURRENT LIABILITIES

Current maturities of long-term debt

724

637

Accounts payable

457

440

Note payable-affiliate

775

754

Accrued expenses and other liabilities

Salaries and benefits

182

217

Income and other taxes

188

206

Other

129

126

Advance billings and customer deposits

325

320

Total current liabilities

2,780

2,700

LONG-TERM DEBT

6,788

6,921

DEFERRED CREDITS AND OTHER LIABILITIES

Deferred revenue

158

161

Deferred income taxes, net

2,297

2,473

Affiliates obligations, net

1,241

1,263

Other

83

87

Total deferred credits and other liabilities

3,779

3,984

COMMITMENTS AND CONTINGENCIES (Note 5)

STOCKHOLDER'S EQUITY

Common stock - one share without par value, owned by Qwest Services Corporation

10,050

Accumulated deficit

(828)

(437)

Total stockholder's equity

9,222

9,613

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY

$ 22,569

$ 23,218

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)

In Millions, except Share data, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Statement of Financial Position [Abstract]

Accounts receivable, allowance (dollars)

$ 37

$ 43

Customer relationships, accumulated amortization

2,342

2,012

Other intangible assets, accumulated amortization

$ 1,103

$ 994

Common stock, share outstanding (in shares)

1

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

OPERATING ACTIVITIES

Net income

$ 509

$ 510

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

998

1,059

Deferred income taxes

(180)

(112)

Provision for uncollectible accounts

25

28

Net long-term debt premium amortization

(23)

(29)

Impairment of asset

16

0

Changes in current assets and current liabilities:

Accounts receivable

(27)

(30)

Accounts payable

5

10

Accrued income and other taxes

(18)

(21)

Other current assets and other current liabilities, net

(30)

(38)

Other current assets and other current liabilities - affiliate

(21)

0

Changes in other noncurrent assets and liabilities, net

(1)

Changes in affiliates obligations, net

(22)

(79)

Other, net

4

1

Net cash provided by operating activities

1,277

1,298

INVESTING ACTIVITIES

Payments for property, plant and equipment and capitalized software

(503)

(607)

Changes in advances to affiliates

146

63

Net cash used in investing activities

(357)

(544)

FINANCING ACTIVITIES

Net proceeds from issuance of long-term debt

0

752

Payments of long-term debt

(24)

(784)

Dividends paid to Qwest Services Corporation

(900)

(750)

Changes in note payable-affiliate

0

28

Net cash used in financing activities

(924)

(754)

Net (decrease) increase in cash and cash equivalents

(4)

0

Cash and cash equivalents at beginning of period

14

8

Cash and cash equivalents at end of period

10

8

Supplemental cash flow information:

Income taxes (paid) refund, net

(502)

(434)

Interest (paid) (net of capitalized interest of $8 and $8)

$ (253)

$ (245)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Statement of Cash Flows [Abstract]

Interest (paid), capitalized interest

$ 8

CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (USD $)

In Millions, unless otherwise specified

Total

COMMON STOCK

ACCUMULATED DEFICIT

Balance at beginning of period at Dec. 31, 2012

$ 10,050

$ (76)

Net income

510

Increase (Decrease) in Stockholder's Equity

Dividends declared to Qwest Services Corporation

(750)

Balance at end of period at Jun. 30, 2013

9,734

10,050

(316)

Balance at beginning of period at Dec. 31, 2013

9,613

10,050

(437)

Net income

509

Increase (Decrease) in Stockholder's Equity

Dividends declared to Qwest Services Corporation

(900)

Balance at end of period at Jun. 30, 2014

$ 9,222

$ 10,050

$ (828)

Basis of Presentation

General

We are an integrated communications company engaged primarily in providing an array of communications services to our residential, business, governmental and wholesale customers. Our communications services include local, broadband, private line (including special access), network access, Ethernet, information technology, wireless and video services. In certain local and regional markets, we also provide local access and fiber transport services to competitive local exchange carriers.

We generate the majority of our revenues 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.

Our consolidated balance sheet as of December 31, 2013, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission ("SEC"); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. We believe that these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations for the first six months of the year are not necessarily indicative of the consolidated results of operations that might be expected for the entire year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013.

The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries over which we exercise control. All intercompany amounts and transactions with our consolidated subsidiaries have been eliminated. Transactions with our non-consolidated affiliates have not been eliminated.

During the second quarter of 2014, we began negotiations of a sale-leaseback transaction of an office building and as a result of the indicated offer price we recorded an impairment charge of $16 million, which is included in selling, general and administrative expense in our consolidated statements of operations for the three and six months ended June 30, 2014. We evaluated the indicated offer price using market conditions and determined that it represented a level 3 estimate of the fair value of the building. The negotiations on the sale of the office building are not final and the sales price could still change.

Change in Estimates

As a result of our annual reviews to evaluate the reasonableness of the depreciable lives for our property, plant and equipment, effective January 2014, we changed the estimates of the remaining economic lives of certain switch and circuit network equipment. These changes resulted in a net increase in depreciation expense of approximately $5 million and $10 million for the three and six months ended June 30, 2014, respectively, and are expected to result in a net increase in depreciation expense of approximately $20 million for the year ending December 31, 2014. This net increase in depreciation expense, net of tax, reduced consolidated net income by approximately $3 million and $6 million for the three and six months ended June 30, 2014, respectively, and is expected to reduce consolidated net income by approximately $12 million for the year ending December 31, 2014.

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09” or “new standard”). The new standard is effective for annual and interim periods beginning January 1, 2017, and early adoption is prohibited. ASU 2014-09 may be adopted by applying the provisions of the new standard on a retrospective basis to the periods included in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect of adopting ASU 2014-09 in the first quarter of 2017. We have not yet decided which implementation method we will adopt.

The new standard replaces virtually all existing generally accepted accounting principles (“GAAP”) on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. We currently do not defer any contract acquisition costs and defer contract fulfillment costs only up to the extent of any revenue deferred.

We are studying the new standard and starting to evaluate and determine the impact the new standard will have on the timing of revenue recognition under our customer agreements and the amount of contract related costs that will be deferred. We cannot, however, provide any estimate of the impact of adopting the new standard at this time.

Long-Term Debt and Revolving Promissory Note

As of the dates indicated below, our long-term debt, including unamortized discounts and premiums and note payable-affiliate, was as follows:



	Interest Rates	Maturities	June 30, 2014			December 31, 2013
			(Dollars in millions)
Senior notes	6.125% - 8.375%	2014 - 2053	$	7,411		7,411
Capital lease and other obligations	Various	Various	49			72
Unamortized premiums, net			52			75
Total long-term debt			7,512			7,558
Less current maturities			(724		)	(637	)
Long-term debt, excluding current maturities			$	6,788		6,921
Note payable-affiliate	6.677%	2022	$	775		754

Revolving Promissory Note

We are currently indebted to an affiliate of our ultimate parent company, CenturyLink, Inc. ("CenturyLink"), under a revolving promissory note that provides us with a funding commitment of up to $1.0 billion aggregate principal amount through June 30, 2022, of which $775 million was outstanding as of June 30, 2014. For the three months ended June 30, 2014, the weighted average interest rate was 6.677%. As of June 30, 2014 and December 31, 2013, this revolving promissory note is reflected on our consolidated balance sheets as a current liability under note payable-affiliate. As of June 30, 2014, $4 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet.

Covenants

As of June 30, 2014, we believe we were in compliance with the provisions and covenants of our debt agreements.

Fair Value Disclosure

Our financial instruments consist of cash and cash equivalents, accounts receivable, advances to affiliates, accounts payable, note payable-affiliate and long-term debt, excluding capital lease obligations. Due to their short-term nature, the carrying amounts of our cash and cash equivalents, accounts receivable, advances to 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 used following the fair value hierarchy set forth by the FASB.

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

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



Input Level		Description of Input

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

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



		June 30, 2014			December 31, 2013
	Input Level	Carrying Amount		Fair Value	Carrying Amount	Fair Value
		(Dollars in millions)
Liabilities-Long-term debt, excluding capital lease and other obligations	2	$	7,463	7,763	7,486	7,226

Products and Services Revenues

We are an integrated communications company engaged primarily in providing an array of communications services, including local, broadband, private line (including special access), network access, Ethernet, information technology, wireless and video services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services. We categorize our products and services related to revenues into the following three categories:


•	Strategic services, which include primarily broadband, private line (including special access), Ethernet, video (including resold satellite video services) and Verizon Wireless services;


•	Legacy services, which include primarily local, Integrated Services Digital Network ("ISDN") (which uses regular telephone lines to support voice, video and data applications), switched access and traditional wide area network ("WAN") services (which allows a local communications network to link to networks in remote locations); and

•

Affiliates and other services, which consist primarily of Universal Service Fund ("USF") revenues and surcharges and services we provide to our non-consolidated affiliates. We provide to our affiliates telecommunication services that we also provide to external customers. In addition, we provide to our affiliates computer system development and support services, network support and technical services.

Operating revenues for our products and services consisted of the following revenue categorization for the three and six months ended June 30, 2014 and 2013:



	Three Months Ended June 30,			Six Months Ended June 30,
	2014		2013	2014	2013
	(Dollars in millions)
Strategic services	$	860	831	1,716	1,660
Legacy services	757		806	1,524	1,630
Affiliates and other services	589		562	1,177	1,068
Total operating revenues	$	2,206	2,199	4,417	4,358

We do not have any single external customer that provides more than 10% of our total revenue. Substantially all of our revenue comes from customers located in the United States.

Affiliates and other services revenues include revenues from universal service funds, which allow us to recover a portion of our costs under federal and state cost recovery mechanisms, and certain surcharges to our customers, including billings for our required contributions to several USF programs.

We recognize revenue in our statement of operations for certain USF surcharges and transaction taxes that we bill to our customers. Our statement of operations also reflects the related expense for the amounts we remit to the government agencies. The total amount of such surcharges that we included in revenue aggregated approximately $39 million and $38 million for the three months ended June 30, 2014 and 2013, respectively, and approximately $78 million for both the six months ended June 30, 2014 and 2013. Those USF surcharges where we record revenue are included in the "other" operating revenues and transaction tax surcharges are included in "legacy services" revenues. We also act as a collection agent for certain other USF and transaction taxes that we are required by government agencies to include in our bills to customers, for which we do not record any revenue or expense because we only act as a pass-through agent.

Our operations are integrated into and reported as part of the consolidated segment data of CenturyLink. CenturyLink'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 Securities and Exchange Commission. Consequently, we do not provide our discrete financial information to the CODM on a regular basis. As such, we believe we have one reportable segment.

Commitments and Contingencies

From time to time, we are involved in other proceedings incidental to our business, including patent infringement allegations, administrative hearings of state public utility commissions relating primarily to our rates or services, actions relating to employee claims, various tax issues, environmental law issues, grievance hearings before labor regulatory agencies and miscellaneous third party tort actions. The outcome of these other proceedings is not predictable. However, based on current circumstances, we do not believe that the ultimate resolution of these other proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows.

We are currently defending several patent infringement lawsuits asserted against us by non-practicing entities. These cases have progressed to various stages and one or more may go to trial in the coming 24 months if they are not otherwise resolved. Where applicable, we are seeking full or partial indemnification from our vendors and suppliers. As with all litigation, we are vigorously defending these actions and, as a matter of course, are prepared both to litigate the matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities.

We are aware of disputes and litigation within the industry, including litigation against us, regarding the proper charges to be applied between interexchange and local exchange carriers for certain calls between mobile and wireline devices that are routed through an interexchange carrier. Some carriers are refusing to pay these access charges and some are seeking refunds of past charges paid. As a local exchange carrier, we assess significant amounts of the charges in question. The outcome of these disputes and litigation are currently not predictable. If we are required to stop assessing these charges or to pay refunds of any such charges, our financial results could be negatively affected.

CenturyLink and its affiliates are involved in several legal proceedings to which we are not a party that, if resolved against them, could have a material adverse effect on their business and financial condition. As an indirect wholly-owned subsidiary of CenturyLink, our business and financial condition could be similarly affected. You can find descriptions of these legal proceedings in CenturyLink's quarterly and annual reports filed with the SEC. Because we are not a party to any of these matters, we have not accrued any liabilities for these matters.

Dividends

During the six months ended June 30, 2014, we declared and paid dividends of $900 million to our direct parent company, Qwest Services Corporation ("QSC"). Dividends paid are reflected on our consolidated statements of cash flows as financing activities.

Other Financial Information

Other Current Assets

The following table presents details of other current assets in our consolidated balance sheets as of the dates indicated below:



	June 30, 2014		December 31, 2013
	(Dollars in millions)
Prepaid expenses	$	63	47
Other	78		79
Total other current assets	$	141	126

Selected Current Liabilities

Current liabilities reflected in our consolidated balance sheets include accounts payable as of the dates indicated below:

Included in accounts payable at June 30, 2014 and December 31, 2013 were $23 million and $11 million, respectively, associated with capital expenditures.

Basis of Presentation Basis of Presentation (Policies)

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09” or “new standard”). The new standard is effective for annual and interim periods beginning January 1, 2017, and early adoption is prohibited. ASU 2014-09 may be adopted by applying the provisions of the new standard on a retrospective basis to the periods included in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect of adopting ASU 2014-09 in the first quarter of 2017. We have not yet decided which implementation method we will adopt.

The new standard replaces virtually all existing generally accepted accounting principles (“GAAP”) on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. We currently do not defer any contract acquisition costs and defer contract fulfillment costs only up to the extent of any revenue deferred.

We are studying the new standard and starting to evaluate and determine the impact the new standard will have on the timing of revenue recognition under our customer agreements and the amount of contract related costs that will be deferred. We cannot, however, provide any estimate of the impact of adopting the new standard at this time.

Long-Term Debt and Revolving Promissory Note (Tables)

Schedule of long-term debt, including unamortized discounts and premiums

As of the dates indicated below, our long-term debt, including unamortized discounts and premiums and note payable-affiliate, was as follows:



	Interest Rates	Maturities	June 30, 2014			December 31, 2013
			(Dollars in millions)
Senior notes	6.125% - 8.375%	2014 - 2053	$	7,411		7,411
Capital lease and other obligations	Various	Various	49			72
Unamortized premiums, net			52			75
Total long-term debt			7,512			7,558
Less current maturities			(724		)	(637	)
Long-term debt, excluding current maturities			$	6,788		6,921
Note payable-affiliate	6.677%	2022	$	775		754

Fair Value Disclosure (Tables)

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

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



Input Level		Description of Input

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

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

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



		June 30, 2014			December 31, 2013
	Input Level	Carrying Amount		Fair Value	Carrying Amount	Fair Value
		(Dollars in millions)
Liabilities-Long-term debt, excluding capital lease and other obligations	2	$	7,463	7,763	7,486	7,226

Products and Services Revenues (Tables)

Schedule of operating revenues by products and services

Operating revenues for our products and services consisted of the following revenue categorization for the three and six months ended June 30, 2014 and 2013:



	Three Months Ended June 30,			Six Months Ended June 30,
	2014		2013	2014	2013
	(Dollars in millions)
Strategic services	$	860	831	1,716	1,660
Legacy services	757		806	1,524	1,630
Affiliates and other services	589		562	1,177	1,068
Total operating revenues	$	2,206	2,199	4,417	4,358

Other Financial Information (Tables)

Schedule of other current assets reflected on the entity's balance sheet

The following table presents details of other current assets in our consolidated balance sheets as of the dates indicated below:



	June 30, 2014		December 31, 2013
	(Dollars in millions)
Prepaid expenses	$	63	47
Other	78		79
Total other current assets	$	141	126

Schedule of accounts payable

Current liabilities reflected in our consolidated balance sheets include accounts payable as of the dates indicated below:

Basis of Presentation (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2014

state

Jun. 30, 2013

Jun. 30, 2014

state

Jun. 30, 2013

Jun. 30, 2014

Change in Estimates of Economic Lives of Property, Plant and Equipment [Member]

Jun. 30, 2014

Change in Estimates of Economic Lives of Property, Plant and Equipment [Member]

Dec. 31, 2014

Forecast

Change in Estimates of Economic Lives of Property, Plant and Equipment [Member]

Geographic Areas, Revenues from External Customers [Abstract]

Number of states in which entity operates (states)

14

Change in Accounting Estimate [Line Items]

Depreciation

$ 5

$ 10

$ 20

Net Income

(256)

(246)

(509)

(510)

3

6

12

Property, Plant and Equipment Impairment or Disposal [Abstract]

Impairment of Real Estate

$ 16

Long-Term Debt and Revolving Promissory Note (Details) (USD $)

Jun. 30, 2014

Dec. 31, 2013

Long-term debt

Unamortized premiums, net

$ 52,000,000

$ 75,000,000

Total long-term debt

7,512,000,000

7,558,000,000

Less current maturities

(724,000,000)

(637,000,000)

Long-term debt, excluding current maturities

6,788,000,000

6,921,000,000

Senior notes

Long-term debt

7,411,000,000

Senior notes |
Minimum

Long-term debt

Interest rate (as a percent)

6.125%

Senior notes |
Maximum

Long-term debt

Interest rate (as a percent)

8.375%

Capital lease and other obligations

Long-term debt

49,000,000

72,000,000

Revolving promissory note |
CenturyLink, Inc. affiliate

Long-term debt

Maximum borrowing capacity

1,000,000,000

Weighted average interest rate (as a percent)

6.677%

Note payable-affiliate

775,000,000

754,000,000

Accrued interest payable on related party note payable

$ 4,000,000

Fair Value Disclosure (Details) (Input Level 2, fair value, USD $)

In Millions, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Carrying Amount

Liabilities

Liabilities-Long-term debt, excluding capital lease and other obligations

$ 7,463

$ 7,486

Fair Value

Liabilities

Liabilities-Long-term debt, excluding capital lease and other obligations

$ 7,763

$ 7,226

Products and Services Revenues (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

segment

June 30,
2014

December 31,
2013

(Dollars in millions)

Accounts payable