Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 13, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'QWEST COMMUNICATIONS INTERNATIONAL INC | ' |
Entity Central Index Key | '0001037949 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding (shares) | ' | 1,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING REVENUES | ' | ' | ' | ' |
Operating revenues | $2,680 | $2,712 | $8,024 | $8,173 |
Operating revenues—affiliates | 168 | 113 | 460 | 327 |
Total operating revenues | 2,848 | 2,825 | 8,484 | 8,500 |
OPERATING EXPENSES | ' | ' | ' | ' |
Cost of services and products (exclusive of depreciation and amortization) | 1,216 | 1,227 | 3,500 | 3,615 |
Selling, general and administrative | 626 | 384 | 1,473 | 1,312 |
Operating expenses—affiliates | 203 | 165 | 571 | 464 |
Depreciation and amortization | 687 | 727 | 2,049 | 2,206 |
Total operating expenses | 2,732 | 2,503 | 7,593 | 7,597 |
OPERATING INCOME | 116 | 322 | 891 | 903 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' |
Interest expense | -144 | -147 | -426 | -471 |
Interest expense-affiliates | -74 | -37 | -202 | -71 |
Net loss on early retirement of debt | 0 | -1 | 0 | -38 |
Other income (expense) | 3 | 0 | 8 | 3 |
Total other income (expense) | -215 | -185 | -620 | -577 |
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | -99 | 137 | 271 | 326 |
Income tax benefit (expense) | 38 | -54 | -77 | -129 |
NET (LOSS) INCOME | ($61) | $83 | $194 | $197 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
NET INCOME | ($61) | $83 | $194 | $197 |
OTHER COMPREHENSIVE INCOME: | ' | ' | ' | ' |
Defined benefit pension and post-retirement plans, net of $(1), $–, $(3), and $– tax | 2 | 0 | 5 | 0 |
COMPREHENSIVE INCOME (LOSS) | ($59) | $83 | $199 | $197 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Statement of Other Comprehensive Income [Abstract] | ' | ' |
Defined benefit pension and post-retirement plans, tax | ($1) | ($3) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $112 | $87 |
Accounts receivable, less allowance of $69 and $76 | 1,200 | 1,177 |
Advances to affiliates | 2,207 | 500 |
Deferred income taxes, net | 587 | 473 |
Other | 369 | 320 |
Total current assets | 4,475 | 2,557 |
NET PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Property, plant and equipment | 12,852 | 11,765 |
Accumulated depreciation | -3,647 | -2,638 |
Net property, plant and equipment | 9,205 | 9,127 |
GOODWILL AND OTHER ASSETS | ' | ' |
Goodwill | 10,123 | 10,123 |
Customer relationships, less accumulated amortization of $2,426 and $1,736 | 5,132 | 5,822 |
Other intangible assets, less accumulated amortization of $1,067 and $828 | 1,095 | 1,277 |
Other | 369 | 340 |
Total goodwill and other assets | 16,719 | 17,562 |
TOTAL ASSETS | 30,399 | 29,246 |
CURRENT LIABILITIES | ' | ' |
Current maturities of long-term debt | 98 | 856 |
Accounts payable | 678 | 687 |
Notes payable-affiliates | 2,699 | 2,023 |
Accrued expenses and other liabilities | ' | ' |
Salaries and benefits | 428 | 450 |
Income and other taxes | 258 | 260 |
Interest | 174 | 128 |
Other | 341 | 86 |
Advance billings and customer deposits | 463 | 452 |
Total current liabilities | 5,139 | 4,942 |
LONG-TERM DEBT | 9,456 | 8,772 |
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' |
Deferred revenue | 209 | 192 |
Benefit plan obligations, net | 3,573 | 3,699 |
Deferred income taxes, net | 706 | 494 |
Other | 493 | 523 |
Total deferred credits and other liabilities | 4,981 | 4,908 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ' | ' |
STOCKHOLDER'S EQUITY | ' | ' |
Common stock—$0.01 par value, 1,000 shares authorized; 1,000 shares issued, owned by CenturyLink, Inc. | 0 | 0 |
Additional paid-in capital | 12,273 | 12,273 |
Accumulated other comprehensive loss | -813 | -818 |
Accumulated deficit | -637 | -831 |
Total stockholder's equity | 10,823 | 10,624 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $30,399 | $29,246 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance (in dollars) | $69 | $76 |
Customer relationships, accumulated amortization (in dollars) | 2,426 | 1,736 |
Other intangible assets, accumulated amortization (in dollars) | $1,067 | $828 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued, owned by CenturyLink, Inc. (in shares) | 1,000 | 1,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES | ' | ' |
Net income | $194 | $197 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,049 | 2,206 |
Deferred income taxes | 96 | 117 |
Provision for uncollectible accounts | 57 | 73 |
Long-term debt premium amortization | -47 | -67 |
Net loss on early retirement of debt | 0 | 38 |
Changes in current assets and current liabilities: | ' | ' |
Accounts receivable | -80 | -80 |
Accounts payable | -2 | -51 |
Accounts receivable and payable-affiliates, net | 0 | -307 |
Accrued income and other taxes | 18 | -1 |
Other current assets and other current liabilities, net | 249 | 66 |
Retirement benefits | -99 | -96 |
Changes in other noncurrent assets and liabilities, net | -18 | -80 |
Other, net | 8 | 2 |
Net cash provided by operating activities | 2,425 | 2,017 |
INVESTING ACTIVITIES | ' | ' |
Payments for property, plant and equipment and capitalized software | -1,266 | -1,121 |
Changes in advances to affiliates | -1,707 | -28 |
Proceeds from sale of property | 0 | 133 |
Net cash used in investing activities | -2,973 | -1,016 |
FINANCING ACTIVITIES | ' | ' |
Net proceeds from issuance of long-term debt | 752 | 896 |
Payments of long-term debt | -835 | -2,761 |
Early retirement of debt costs | 0 | -178 |
Payments of Distributions to Affiliates | 0 | -750 |
Changes in notes payable-affiliates | 676 | 1,985 |
Changes in advances from affiliates | -20 | -187 |
Net cash provided by (used in) financing activities | 573 | -995 |
Net (decrease) increase in cash and cash equivalents | 25 | 6 |
Cash and cash equivalents at beginning of period | 87 | 48 |
Cash and cash equivalents at end of period | 112 | 54 |
Supplemental cash flow information: | ' | ' |
Income taxes refunded (paid), net | -1 | 1 |
Interest (paid) (net of capitalized interest of $19 and $19) | ($501) | ($585) |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Cash Flows [Abstract] | ' | ' |
Interest (paid), capitalized interest | $19 | $19 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (USD $) | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED DEFICIT |
In Millions, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | ' | $0 | $12,273 | ($446) | ($551) |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' |
Net income | 197 | ' | ' | ' | 197 |
Dividends declared to CenturyLink, Inc. | ' | ' | ' | ' | -588 |
Ending Balance at Sep. 30, 2012 | 10,885 | 0 | 12,273 | ' | -942 |
Beginning Balance at Jun. 30, 2012 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' |
Other comprehensive income | ' | ' | ' | 0 | ' |
Net income | 83 | ' | ' | ' | ' |
Ending Balance at Sep. 30, 2012 | 10,885 | 0 | 12,273 | -446 | ' |
Beginning Balance at Dec. 31, 2012 | 10,624 | 0 | 12,273 | -818 | -831 |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' |
Other comprehensive income | ' | ' | ' | 5 | ' |
Net income | 194 | ' | ' | ' | ' |
Dividends declared to CenturyLink, Inc. | ' | ' | ' | ' | 0 |
Ending Balance at Sep. 30, 2013 | $10,823 | $0 | $12,273 | ($813) | ($637) |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
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 and long-distance, network access, private line (including special access), broadband, Ethernet, data, managed hosting, colocation, 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 are a wholly-owned subsidiary of CenturyLink, Inc., ("CenturyLink") which acquired us on April 1, 2011. | |
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, 2012, 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 nine 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, 2012. | |
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. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill | ' |
(2) Goodwill | |
We test our goodwill and other indefinite-lived intangible assets for impairment annually, or, under certain circumstances, more frequently, such as when events or circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our testing determines the recorded amount of goodwill exceeds the fair value. Our annual measurement date for testing goodwill impairment is September 30, at which date we test our one reporting unit, Qwest. | |
We compare Qwest’s estimated fair value to the carrying value of equity. If the estimated fair value of Qwest is greater than the carrying value, we conclude that no impairment exists. If the estimated fair value of the Qwest is less than the carrying value, a second calculation is required in which the implied fair value of goodwill is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than its carrying value of goodwill, goodwill must be written down to its implied fair value. | |
At September 30, 2013, as a result of changes in our forecasted cash flows since our previous quantitative assessment, we did not have a baseline valuation upon which to perform a qualitative assessment. Therefore, we are in the process of completing our goodwill impairment testing by considering both a market approach and a discounted cash flow method. The market approach method includes the use of comparable multiples of publicly traded companies whose services are comparable to ours. The discounted cash flow method is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows beyond the cash flows from the discrete projection period. | |
Our direct parent, CenturyLink, has not completed its goodwill impairment test as of September 30, 2013, and as a result, we also have not completed our impairment test; however, based on our analysis performed thus far, we do not anticipate an impairment of our goodwill. We expect to complete our impairment analysis prior to reporting our financial results for the fourth quarter of 2013. |
LongTerm_Debt_and_Revolving_Pr
Long-Term Debt and Revolving Promissory Notes | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Long-Term Debt and Revolving Promissory Notes | ' | ||||||||||
Long-Term Debt and Revolving Promissory Notes | |||||||||||
Long-term debt, including unamortized discounts and premiums, is as follows: | |||||||||||
Interest Rates | Maturities | 30-Sep-13 | 31-Dec-12 | ||||||||
(Dollars in millions) | |||||||||||
Qwest Communications International Inc. | |||||||||||
Senior notes | 7.12% | 2018 | $ | 800 | 800 | ||||||
Unamortized premiums | 43 | 49 | |||||||||
Qwest Capital Funding | |||||||||||
Senior notes | 6.500% - 7.750% | 2018 - 2031 | 981 | 981 | |||||||
Unamortized premiums, net | 25 | 27 | |||||||||
Qwest Corporation | |||||||||||
Senior notes | 6.125% - 8.375% | 2014 - 2053 | 7,411 | 7,386 | |||||||
Capital lease and other obligations | Various | Various | 85 | 113 | |||||||
Unamortized premiums, net | 86 | 127 | |||||||||
Qwest Communications Company, LLC | |||||||||||
Capital lease and other obligations | Various | Various | 123 | 145 | |||||||
Total long-term debt | 9,554 | 9,628 | |||||||||
Less current maturities | (98 | ) | (856 | ) | |||||||
Long-term debt, excluding current maturities | $ | 9,456 | 8,772 | ||||||||
New Issuance | |||||||||||
On May 23, 2013, Qwest Corporation ("QC") issued $775 million aggregate principal amount of 6.125% Notes due 2053, including $25 million principal amount that was sold pursuant to an over-allotment option granted to the underwriters for the offering, in exchange for net proceeds, after deducting underwriting discounts and expenses, of approximately $752 million. The Notes are unsecured obligations and may be redeemed, in whole or in part, on or after June 1, 2018 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date. | |||||||||||
Repayment | |||||||||||
On June 17, 2013, QC paid at maturity the $750 million principal amount of its floating rate Notes. | |||||||||||
Revolving Promissory Notes | |||||||||||
QCII has a revolving promissory note with an affiliate of CenturyLink that provides us with a funding commitment with an aggregate principal amount available of $3.0 billion through June 30, 2022, of which $1.958 billion was outstanding as of September 30, 2013. As of September 30, 2013, the weighted average interest rate under this note was 6.783%. This revolving promissory note and accrued interest thereon is reflected on our consolidated balance sheets as a current liability under notes payable—affiliates. | |||||||||||
QC has a revolving promissory note with an affiliate of CenturyLink that provides QC with a funding commitment with an aggregate principal amount available of $1.0 billion through June 30, 2022, of which $741 million was outstanding as of September 30, 2013. As of September 30, 2013, the weighted average interest rate under this note was 6.783%. This revolving promissory note and accrued interest thereon is reflected on our consolidated balance sheets as a current liability under notes payable—affiliates. | |||||||||||
Covenants | |||||||||||
As of September 30, 2013, we believe we were in compliance with the provisions and covenants of our debt agreements. |
Severance_and_Leased_Real_Esta
Severance and Leased Real Estate | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Restructuring and Related Activities [Abstract] | ' | ||||||
Severance and Leased Real Estate | ' | ||||||
Severance and Leased Real Estate | |||||||
Periodically, we have reductions in our workforce and have accrued liabilities for the related severance costs. These workforce reductions resulted primarily from the progression or completion of our integration plans related to CenturyLink's acquisition of us, increased competitive pressures and reduced workload demands due to the loss of access lines. | |||||||
We report severance liabilities within accrued expenses and other liabilities-salaries and benefits in our consolidated balance sheets and report severance expenses in cost of services and products and selling, general and administrative expenses in our consolidated statements of operations. | |||||||
We report the current portion of liabilities for real estate leases that we have ceased using in accrued expenses and other liabilities and report the noncurrent portion in other noncurrent liabilities under deferred credits and other liabilities in our consolidated balance sheets. We report the related expenses in selling, general and administrative expenses in our consolidated statements of operations. At September 30, 2013, the current and noncurrent portions of our leased real estate accrual were $18 million and $99 million, respectively. The remaining lease terms range from 0.3 to 12.3 years, with a weighted average of 8.7 years. | |||||||
Changes in our accrued liabilities for severance expenses and leased real estate were as follows: | |||||||
Severance | Real Estate | ||||||
(Dollars in millions) | |||||||
Balance at December 31, 2012 | $ | 7 | 131 | ||||
Accrued to expense | 6 | — | |||||
Payments, net | (9 | ) | (12 | ) | |||
Reversals and adjustments | — | (2 | ) | ||||
Balance at September 30, 2013 | $ | 4 | 117 | ||||
Employee_Benefits
Employee Benefits | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Employee Benefits | ' | ||||||||||||
Employee Benefits | |||||||||||||
Net periodic pension benefit (income) expense included the following components: | |||||||||||||
Pension Plans | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
Service cost | $ | 13 | 15 | 43 | 44 | ||||||||
Interest cost | 83 | 97 | 250 | 293 | |||||||||
Expected return on plan assets | (149 | ) | (144 | ) | (447 | ) | (432 | ) | |||||
Recognition of actuarial loss | 2 | — | 5 | — | |||||||||
Net periodic pension benefit (income) expense | $ | (51 | ) | (32 | ) | (149 | ) | (95 | ) | ||||
Net periodic post-retirement benefit expense (income) included the following components: | |||||||||||||
Post-Retirement Benefit Plans | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
Service cost | $ | 3 | 2 | 9 | 6 | ||||||||
Interest cost | 30 | 37 | 88 | 110 | |||||||||
Expected return on plan assets | (9 | ) | (10 | ) | (27 | ) | (31 | ) | |||||
Recognition of actuarial loss | 1 | — | 3 | — | |||||||||
Net periodic post-retirement benefit expense (income) | $ | 25 | 29 | 73 | 85 | ||||||||
We report net periodic benefit (income) expense for our qualified pension, non-qualified pension and post-retirement benefit plans in cost of services and products and selling, general and administrative expenses on our consolidated statements of operations. |
Fair_Value_Disclosure
Fair Value Disclosure | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Fair Value Disclosure | ' | ||||||||||||||
Fair Value Disclosure | |||||||||||||||
Our financial instruments consist of cash and cash equivalents, accounts receivable, advances to affiliates, accounts payable, notes payable—affiliates 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 notes payable—affiliates 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 Financial Accounting Standards Board ("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 obligations, as well as the input level used to determine the fair values: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||
Input | Carrying | Fair Value | Carrying | Fair Value | |||||||||||
Level | Amount | Amount | |||||||||||||
(Dollars in millions) | |||||||||||||||
Liabilities—Long-term debt, excluding capital lease obligations | 2 | $ | 9,346 | 9,225 | 9,370 | 9,909 | |||||||||
Products_and_Services_Revenues
Products and Services Revenues | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Products and Services Revenues | ' | ||||||||||||
Products and Services Revenues | |||||||||||||
We are an integrated communications company engaged primarily in providing an array of communications services, including local and long-distance, network access, private line (including special access), broadband, Ethernet, data, managed hosting, colocation, 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 revenues into the following four categories: | |||||||||||||
• | Strategic services, which include primarily private line (including special access), broadband, Multiprotocol Label Switching ("MPLS") (which is a data networking technology that can deliver the quality of service required to support real-time voice and video), Ethernet, hosting, colocation, video (including resold satellite video services), Voice over Internet Protocol ("VoIP") and Verizon Wireless services; | ||||||||||||
• | Legacy services, which include primarily local, long-distance, 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); | ||||||||||||
• | Data integration, which includes the sale of telecommunications equipment located on customers' premises and related professional services, such as network management, installation and maintenance of data equipment and building of proprietary fiber-optic broadband networks for our government and business customers; 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 as well as network support and technical services. | ||||||||||||
Our operating revenues for our products and services consisted of the following categories: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
Strategic services | $ | 1,313 | 1,258 | 3,886 | 3,715 | ||||||||
Legacy services | 1,113 | 1,197 | 3,395 | 3,681 | |||||||||
Data integration | 138 | 137 | 385 | 393 | |||||||||
Affiliates and other services | 284 | 233 | 818 | 711 | |||||||||
Total operating revenues | $ | 2,848 | 2,825 | 8,484 | 8,500 | ||||||||
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. | |||||||||||||
The table below presents the aggregate USF surcharges recognized on a gross basis: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
USF and surcharges included in operating revenues and expenses | $ | 90 | 95 | 278 | 298 | ||||||||
Our operations are integrated into and reported as part of the segments 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 have one reportable segment. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In this Note, when we refer to a class action as "putative" it is because a class has been alleged, but not certified in that matter. Until and unless a class has been certified by the court, it has not been established that the named plaintiffs represent the class of plaintiffs they purport to represent. | |
We have established accrued liabilities for the matters described below where losses are deemed probable and reasonably estimable. | |
We are vigorously defending against all of the matters described below. As a matter of course, we are prepared both to litigate the matters to judgment, as well as to evaluate and consider all settlement opportunities. | |
The terms and conditions of applicable bylaws, certificates or articles of incorporation, agreements or applicable law may obligate us to indemnify our former directors, officers or employees with respect to certain of the matters described below, and we have been advancing legal fees and costs to certain former directors, officers or employees in connection with certain matters described below. | |
Litigation Matters Relating to Qwest | |
On July 16, 2013, Comcast MO Group, Inc. ("Comcast") filed a lawsuit in Colorado state court against Qwest Communications International, Inc. ("Qwest"). Comcast alleges Qwest breached the parties' 1998 tax sharing agreement ("TSA") when it refused to partially indemnify Comcast for a tax liability settlement Comcast reached with the Commonwealth of Massachusetts in a dispute to which we were not a party. Comcast seeks approximately $80 million in damages, excluding interest. Qwest and Comcast are parties to the TSA in their capacities as successors to the TSA's original parties, U S WEST, Inc., a telecommunications company, and MediaOne Group, Inc., a cable television company, respectively. We have not accrued a liability for this matter because we do not believe that liability is probable. | |
KPNQwest Litigation/Investigation | |
On September 29, 2010, the trustees in the Dutch bankruptcy proceeding for KPNQwest, N.V. (of which we were a major shareholder) filed a lawsuit in the District Court of Haarlem, the Netherlands, alleging tort and mismanagement claims under Dutch law. We and Koninklijke KPN N.V. ("KPN") are defendants in this lawsuit along with a number of former KPNQwest supervisory board members and a former officer of KPNQwest, some of whom were formerly affiliated with us. Plaintiffs allege, among other things, that defendants' actions were a cause of the bankruptcy of KPNQwest, and they seek damages for the bankruptcy deficit of KPNQwest, which is claimed to be approximately €4.2 billion (or approximately $5.7 billion based on the exchange rate on September 30, 2013), plus statutory interest. Two lawsuits asserting similar claims were previously filed against Qwest and others in federal courts in New Jersey in 2004 and Colorado in 2009; those courts dismissed the lawsuits without prejudice on the grounds that the claims should not be litigated in the United States. | |
In October 2013 following a confidential mediation, Qwest, KPN, and the trustees reached a tentative oral agreement on the principal financial terms of a potential settlement. The potential settlement terms include Qwest’s payment of €172 million (or approximately $233 million based on the exchange rate on September 30, 2013) to the KPNQwest bankruptcy estate pursuant to its indemnification obligations, discussed below. The tentative settlement is subject to several conditions, including the negotiation and execution of a definitive settlement agreement acceptable to the plaintiffs and various other defendants and the approval of the Dutch bankruptcy court. | |
On September 13, 2006, Cargill Financial Markets, Plc and Citibank, N.A. filed a lawsuit in the District Court of Amsterdam, the Netherlands, against us, KPN, KPN Telecom B.V., and other former officers, employees or supervisory board members of KPNQwest, some of whom were formerly affiliated with us. The lawsuit alleges that defendants misrepresented KPNQwest's financial and business condition in connection with the origination of a credit facility and wrongfully allowed KPNQwest to borrow funds under that facility. Plaintiffs allege damages of approximately €219 million (or approximately $296 million based on the exchange rate on September 30, 2013). The value of this claim will be reduced to the degree plaintiffs receive recovery from the tentative trustee settlement described above. While we expect the plaintiffs would receive proceeds from any such trustee settlement, the amounts of such expected recovery are not yet known. On April 25, 2012, the court issued its judgment denying the claims asserted by Cargill and Citibank in their lawsuit. Cargill and Citibank are appealing that decision. | |
Regarding the 2010 proceeding filed by the trustees, we have accrued a liability in the third quarter of 2013 in the pre-tax amount of €172 millions (or approximately $233 million reflected in other current liabilities in our accompanying consolidated financial statements based on the exchange rate on September 30, 2013), which equals Qwest’s proposed contribution under the terms of the tentative settlement. In the event that a settlement is not finalized, we will continue to defend against the matter vigorously. Regarding the 2006 suit brought by Cargill Financial Markets, Plc and Citibank, N.A, we do not believe that liability is probable and will continue to defend against the matter vigorously. | |
Other Matters | |
Several putative class actions relating to the installation of fiber optic cable in certain rights-of-way were filed against Qwest on behalf of landowners on various dates and in courts located in 34 states in which Qwest has such cable (Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Wisconsin.) For the most part, the complaints challenge our right to install our fiber optic cable in railroad rights-of-way. The complaints allege that the railroads own the right-of-way as an easement that did not include the right to permit us to install our cable in the right-of-way without the plaintiffs' consent. Most of the currently pending actions purport to be brought on behalf of state-wide classes in the named plaintiffs' respective states, although one action pending before the Illinois Court of Appeals purports to be brought on behalf of landowners in Illinois, Iowa, Kentucky, Michigan, Minnesota, Nebraska, Ohio and Wisconsin. In general, the complaints seek damages on theories of trespass and unjust enrichment, as well as punitive damages. After previous attempts to enter into a single nationwide settlement in a single court proved unsuccessful, the parties proceeded to seek court approval of settlements on a state-by-state basis. To date, the parties have received final approval of such settlements in 29 states (Alabama, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia and Wisconsin), have received only preliminary approval of the settlement in one state (Kentucky), and have not yet received either preliminary or final approval in one state where an action is pending (Texas) and three states where actions were at one time, but are not currently, pending (Arizona, Massachusetts and New Mexico). We have accrued an amount that we believe is probable for these matters; however, the amount is not material to our consolidated financial statements. | |
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 rate making, 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 insurance coverage, will have a material adverse effect on our financial position, results of operations or cash flows. | |
CenturyLink is involved in several legal proceedings to which we are not a party that, if resolved against CenturyLink, could have a material adverse effect on its business and financial condition. As a 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. |
Other_Financial_Information
Other Financial Information | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ||||||
Other Financial Information | ' | ||||||
Other Financial Information | |||||||
Other Current Assets | |||||||
Other current assets reflected on our consolidated balance sheets consisted of the following: | |||||||
Other Current Assets | |||||||
30-Sep-13 | 31-Dec-12 | ||||||
(Dollars in millions) | |||||||
Prepaid expenses | $ | 197 | 195 | ||||
Other | 172 | 125 | |||||
Total other current assets | $ | 369 | 320 | ||||
Labor_Union_Contracts
Labor Union Contracts | 9 Months Ended |
Sep. 30, 2013 | |
Labor Union Contracts | ' |
Labor Union Contracts | ' |
Labor Union Contracts | |
Approximately 12,000 or 48% of our employees are members of various bargaining units represented by the Communications Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW") and are subject to collective bargaining agreements that expired October 6, 2012. Since the expirations, we have been negotiating the terms of new agreements. Recently, we reached conditional agreements with CWA District 7 and IBEW Local 206 for a four-year collective bargaining agreement covering approximately 12,000 of our employees. After rejecting the initial agreements, the CWA and IBEW members approved the second agreements and they became effective on October 25, 2013. The new agreements will expire on October 7, 2017. |
Financial_Statements_of_Guaran
Financial Statements of Guarantors | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Financial Statements of Guarantors | ' | |||||||||||||||
Financial Statements of Guarantors | ' | |||||||||||||||
Financial Statements of Guarantors | ||||||||||||||||
QCII and our wholly owned subsidiaries, Qwest Capital Funding, Inc ("QCF") and Qwest Service Company ("QSC"), guarantee the payment of certain of each other's registered debt securities. As of September 30, 2013, each series of QCII's outstanding notes totaling $800 million in aggregate principal amount is guaranteed on a senior unsecured basis by QCF and QSC (the "QCII Guaranteed Notes"). These notes are guaranteed through their respective maturity dates, the latest of which is in April 2018. In addition, each series of QCF's outstanding notes totaling $981 million in aggregate principal amount is guaranteed on a senior unsecured basis by QCII (the "QCF Guaranteed Notes"). These notes are guaranteed through their respective maturity dates, the latest of which is in February 2031. The guarantees described above are full and unconditional and joint and several. A significant amount of QCII's and QSC's income and cash flow are generated by their subsidiaries. As a result, the funds necessary to meet their debt service or guarantee obligations are provided in large part by distributions or advances from their subsidiaries. | ||||||||||||||||
The following information sets forth our condensed consolidating statements of operations, balance sheets and statements of cash flows for the periods indicated. The information for QCII is presented on a stand-alone basis, information for QSC and QCF is presented on a combined basis and information for all of our other non-guarantor subsidiaries is presented on a combined basis. Each entity's investments in its subsidiaries, if any, are presented under the equity method. The consolidating statements of operations and balance sheets include the effects of consolidating adjustments to our subsidiaries' tax provisions and the related income tax assets and liabilities in the QSC and QCII results. Both QSC and QCF are 100% owned by QCII and QCF is a finance subsidiary of QCII. Other than as already described in this note, the accounting principles used to determine the amounts reported in this note are the same as those used in our consolidated financial statements. | ||||||||||||||||
CenturyLink periodically restructures the internal capital structure of its subsidiaries, including QCII and its subsidiaries, based on the needs of its business. | ||||||||||||||||
Allocations among Affiliates | ||||||||||||||||
We allocate the costs of shared services among our affiliates. These services include marketing and advertising, IT, product and technical services as well as general support services. The allocation of these costs is based on estimated market values or fully distributed cost ("FDC"). Most of our affiliate services are priced by applying an FDC methodology. FDC rates are determined using salary rates, which include payroll taxes, employee benefits, facilities and overhead costs. Whenever possible, costs are directly assigned to the affiliate that uses the service. If costs cannot be directly assigned, they are allocated among all affiliates based on various cost usage measures; or if no cost usage measure is available, these costs are allocated based on a general allocator. From time to time, we adjust the basis for allocating the costs of a shared service among our affiliates. Such changes in allocation methodologies are generally billed prospectively. | ||||||||||||||||
Under our tax allocation policy, we treat our subsidiaries as if they were separate taxpayers. The policy requires that each subsidiary pay its tax liabilities in cash or settle its tax liabilities through a change in its general intercompany obligation based on that subsidiary's separate return taxable income. To the extent a subsidiary has taxable losses, the subsidiary does not pay any amount and therefore retains the benefit of the losses, which are subject to valuation allowances to the extent it is not anticipated that the subsidiary will have sufficient future taxable income to utilize the losses. Subsidiaries are also included in the combined state tax returns we file and the same payment and allocation policy applies. | ||||||||||||||||
Eligible employees of our subsidiaries participate in the QCII pension and non-qualified pension plan and may become eligible to participate in our post-retirement health care and life insurance, and other post-employment benefit plans. The amounts contributed by our subsidiaries are not segregated or restricted to pay amounts due to their employees and may be used to provide benefits to our other employees or employees of other subsidiaries. We allocate the cost of pension, non-qualified pension, and post-retirement health care and life insurance benefits and the associated obligations and assets to our subsidiaries and determine the subsidiaries' required contributions. The allocation is based upon demographics of each subsidiary's employees compared to all participants. In determining the allocated amounts, we make numerous assumptions. Changes in any of our assumptions could have a material impact on the expense allocated to our subsidiaries. | ||||||||||||||||
Out-of-Period Adjustment | ||||||||||||||||
In conjunction with finalizing our 2012 Annual Report on Form 10-K, we discovered that certain transactions with affiliates had been presented incorrectly in our consolidating statements of cash flows for the period ended September 30, 2012. Specifically, the settlement of certain intercompany obligations by and between our consolidated affiliates were treated as operating cash flows, which had the effect of understating the operating cash flows for the guarantors and overstating the operating cash flows for the non-guarantors by $671 million, with offsetting effects recorded as investing and financing activities for the nine months ended September 30, 2012. We considered both quantitative and qualitative factors in reaching the conclusion that the correction of the error was immaterial to our previously issued financial statements. Correcting this error affected certain entities included in our consolidating statements of cash flows but did not affect our consolidated statement of cash flows. | ||||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 2,680 | — | 2,680 | ||||||||||
Operating revenues—affiliates | — | (1 | ) | 169 | — | 168 | ||||||||||
Total operating revenues | — | (1 | ) | 2,849 | — | 2,848 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | — | 1,216 | — | 1,216 | |||||||||||
Selling, general and administrative | 220 | — | 408 | (2 | ) | 626 | ||||||||||
Operating expenses—affiliates | — | — | 201 | 2 | 203 | |||||||||||
Depreciation and amortization | 9 | — | 678 | — | 687 | |||||||||||
Total operating expenses | 229 | — | 2,503 | — | 2,732 | |||||||||||
OPERATING (LOSS) INCOME | (229 | ) | (1 | ) | 346 | — | 116 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (12 | ) | (17 | ) | (115 | ) | — | (144 | ) | |||||||
Interest expense—affiliates | (34 | ) | (28 | ) | (37 | ) | 25 | (74 | ) | |||||||
Interest income—affiliates | — | 26 | — | (25 | ) | 1 | ||||||||||
Income from equity investments in subsidiaries | 211 | 46 | — | (257 | ) | — | ||||||||||
Other income | 1 | — | 1 | — | 2 | |||||||||||
Total other income (expense) | 166 | 27 | (151 | ) | (257 | ) | (215 | ) | ||||||||
(LOSS) INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) | (63 | ) | 26 | 195 | (257 | ) | (99 | ) | ||||||||
Income tax benefit (expense) | 2 | 185 | (149 | ) | — | 38 | ||||||||||
NET (LOSS) INCOME | $ | (61 | ) | 211 | 46 | (257 | ) | (61 | ) | |||||||
COMPREHENSIVE (LOSS) INCOME | $ | (59 | ) | 211 | 46 | (257 | ) | (59 | ) | |||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 2,712 | — | 2,712 | ||||||||||
Operating revenues—affiliates | — | — | 113 | — | 113 | |||||||||||
Total operating revenues | — | — | 2,825 | — | 2,825 | |||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | — | 1,227 | — | 1,227 | |||||||||||
Selling, general and administrative | 2 | — | 382 | — | 384 | |||||||||||
Operating expenses—affiliates | — | — | 165 | — | 165 | |||||||||||
Depreciation and amortization | 15 | — | 712 | — | 727 | |||||||||||
Total operating expenses | 17 | — | 2,486 | — | 2,503 | |||||||||||
OPERATING (LOSS) INCOME | (17 | ) | — | 339 | — | 322 | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (21 | ) | (17 | ) | (109 | ) | — | (147 | ) | |||||||
Interest expense—affiliates | (26 | ) | (28 | ) | (11 | ) | 28 | (37 | ) | |||||||
Interest income—affiliates | — | 28 | — | (28 | ) | — | ||||||||||
Income from equity investments in subsidiaries | 144 | 75 | — | (219 | ) | — | ||||||||||
Net gain (loss) on early retirement of debt | 12 | — | (13 | ) | — | (1 | ) | |||||||||
Other income (expense) | (14 | ) | — | 14 | — | — | ||||||||||
Total other income (expense) | 95 | 58 | (119 | ) | (219 | ) | (185 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE) | 78 | 58 | 220 | (219 | ) | 137 | ||||||||||
Income tax benefit (expense) | 5 | 86 | (145 | ) | — | (54 | ) | |||||||||
NET INCOME (LOSS) | $ | 83 | 144 | 75 | (219 | ) | 83 | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 83 | 144 | 75 | (219 | ) | 83 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 8,024 | — | 8,024 | ||||||||||
Operating revenues—affiliates | — | 7 | 461 | (8 | ) | 460 | ||||||||||
Total operating revenues | — | 7 | 8,485 | (8 | ) | 8,484 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | 4 | 3,496 | — | 3,500 | |||||||||||
Selling, general and administrative | 242 | 10 | 1,223 | (2 | ) | 1,473 | ||||||||||
Operating expenses—affiliates | — | — | 577 | (6 | ) | 571 | ||||||||||
Depreciation and amortization | 32 | — | 2,017 | — | 2,049 | |||||||||||
Total operating expenses | 274 | 14 | 7,313 | (8 | ) | 7,593 | ||||||||||
OPERATING (LOSS) INCOME | (274 | ) | (7 | ) | 1,172 | — | 891 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (37 | ) | (52 | ) | (337 | ) | — | (426 | ) | |||||||
Interest expense—affiliates | (105 | ) | (84 | ) | (91 | ) | 78 | (202 | ) | |||||||
Interest income—affiliates | — | 79 | 1 | (78 | ) | 2 | ||||||||||
Income from equity investments in subsidiaries | 597 | 253 | — | (850 | ) | — | ||||||||||
Other income | 5 | — | 1 | — | 6 | |||||||||||
Total other income (expense) | 460 | 196 | (426 | ) | (850 | ) | (620 | ) | ||||||||
INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) | 186 | 189 | 746 | (850 | ) | 271 | ||||||||||
Income tax benefit (expense) | 8 | 408 | (493 | ) | — | (77 | ) | |||||||||
NET INCOME (LOSS) | $ | 194 | 597 | 253 | (850 | ) | 194 | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 199 | 597 | 253 | (850 | ) | 199 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 8,173 | — | 8,173 | ||||||||||
Operating revenues—affiliates | — | 3 | 327 | (3 | ) | 327 | ||||||||||
Total operating revenues | — | 3 | 8,500 | (3 | ) | 8,500 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | — | 3,615 | — | 3,615 | |||||||||||
Selling, general and administrative | 5 | 3 | 1,304 | — | 1,312 | |||||||||||
Operating expenses—affiliates | — | — | 467 | (3 | ) | 464 | ||||||||||
Depreciation and amortization | 49 | — | 2,157 | — | 2,206 | |||||||||||
Total operating expenses | 54 | 3 | 7,543 | (3 | ) | 7,597 | ||||||||||
OPERATING (LOSS) INCOME | (54 | ) | — | 957 | — | 903 | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (85 | ) | (51 | ) | (335 | ) | — | (471 | ) | |||||||
Interest expense—affiliates | (48 | ) | (82 | ) | (22 | ) | 81 | (71 | ) | |||||||
Interest income—affiliates | — | 81 | — | (81 | ) | — | ||||||||||
Income from equity investments in subsidiaries | 361 | 135 | — | (496 | ) | — | ||||||||||
Net gain (loss) on early retirement of debt | 12 | — | (50 | ) | — | (38 | ) | |||||||||
Other income (expense) | (1 | ) | — | 4 | — | 3 | ||||||||||
Total other income (expense) | 239 | 83 | (403 | ) | (496 | ) | (577 | ) | ||||||||
INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) | 185 | 83 | 554 | (496 | ) | 326 | ||||||||||
Income tax benefit (expense) | 12 | 278 | (419 | ) | — | (129 | ) | |||||||||
NET INCOME | $ | 197 | 361 | 135 | (496 | ) | 197 | |||||||||
COMPREHENSIVE INCOME | $ | 197 | 361 | 135 | (496 | ) | 197 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||
SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 2 | 80 | 30 | — | 112 | ||||||||||
Accounts receivable, less allowance | 11 | — | 1,189 | — | 1,200 | |||||||||||
Notes receivable—affiliates | — | 1,413 | — | (1,413 | ) | — | ||||||||||
Advances to affiliates | 188 | 2,180 | — | (161 | ) | 2,207 | ||||||||||
Deferred income taxes, net | — | 439 | 148 | — | 587 | |||||||||||
Other | — | — | 369 | — | 369 | |||||||||||
Total current assets | 201 | 4,112 | 1,736 | (1,574 | ) | 4,475 | ||||||||||
Net property, plant and equipment | — | — | 9,205 | — | 9,205 | |||||||||||
Goodwill | — | — | 10,123 | — | 10,123 | |||||||||||
Customer relationships, net | — | — | 5,132 | — | 5,132 | |||||||||||
Other intangible assets, net | 32 | — | 1,063 | — | 1,095 | |||||||||||
Investments in subsidiaries | 14,619 | 12,781 | — | (27,400 | ) | — | ||||||||||
Deferred income taxes, net | 1,331 | 473 | — | (1,804 | ) | — | ||||||||||
Prepaid pension, post-retirement and other post-employment benefits—affiliate | 1,574 | — | — | (1,570 | ) | 4 | ||||||||||
Other | 37 | 7 | 321 | — | 365 | |||||||||||
TOTAL ASSETS | $ | 17,794 | 17,373 | 27,580 | (32,348 | ) | 30,399 | |||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Current maturities of long-term debt | $ | — | — | 98 | — | 98 | ||||||||||
Notes payable—affiliates | 1,958 | 1,413 | 741 | (1,413 | ) | 2,699 | ||||||||||
Accounts payable | (1 | ) | — | 679 | — | 678 | ||||||||||
Accounts payable—affiliates | — | — | 161 | (161 | ) | — | ||||||||||
Accrued expenses and other liabilities | 442 | 14 | 745 | — | 1,201 | |||||||||||
Advance billings and customers deposits | — | — | 463 | — | 463 | |||||||||||
Total current liabilities | 2,399 | 1,427 | 2,887 | (1,574 | ) | 5,139 | ||||||||||
LONG-TERM DEBT | 843 | 1,007 | 7,606 | — | 9,456 | |||||||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||||||||||
Deferred revenues | — | — | 209 | — | 209 | |||||||||||
Benefit plan obligations, net | 3,573 | — | — | — | 3,573 | |||||||||||
Pension, post-retirement and other post-employment benefits obligations and other—affiliates | — | 290 | 1,280 | (1,570 | ) | — | ||||||||||
Deferred income taxes | — | — | 2,510 | (1,804 | ) | 706 | ||||||||||
Other | 156 | 30 | 307 | — | 493 | |||||||||||
Total deferred credits and other liabilities | 3,729 | 320 | 4,306 | (3,374 | ) | 4,981 | ||||||||||
Stockholder's equity | 10,823 | 14,619 | 12,781 | (27,400 | ) | 10,823 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 17,794 | 17,373 | 27,580 | (32,348 | ) | 30,399 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||
DECEMBER 31, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 11 | 59 | 17 | — | 87 | ||||||||||
Accounts receivable, less allowance | 10 | — | 1,167 | — | 1,177 | |||||||||||
Advances to affiliates | — | 938 | 223 | (661 | ) | 500 | ||||||||||
Notes receivable—affiliates | — | 1,413 | — | (1,413 | ) | — | ||||||||||
Deferred income taxes, net | — | 272 | 201 | — | 473 | |||||||||||
Other | 8 | — | 321 | (9 | ) | 320 | ||||||||||
Total current assets | 29 | 2,682 | 1,929 | (2,083 | ) | 2,557 | ||||||||||
Net property, plant and equipment | — | — | 9,127 | — | 9,127 | |||||||||||
Goodwill | — | — | 10,123 | — | 10,123 | |||||||||||
Customer relationships, net | — | — | 5,822 | — | 5,822 | |||||||||||
Other intangible assets, net | 64 | — | 1,213 | — | 1,277 | |||||||||||
Investments in subsidiaries | 14,322 | 13,478 | — | (27,800 | ) | — | ||||||||||
Deferred income taxes, net | 1,336 | 931 | — | (2,267 | ) | — | ||||||||||
Prepaid pension, post-retirement and other post-employment benefits—affiliate | 1,697 | — | — | (1,693 | ) | 4 | ||||||||||
Other | 37 | 7 | 292 | — | 336 | |||||||||||
TOTAL ASSETS | $ | 17,485 | 17,098 | 28,506 | (33,843 | ) | 29,246 | |||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Current maturities of long-term debt | $ | — | — | 856 | — | 856 | ||||||||||
Notes payable—affiliates | 1,322 | 1,413 | 701 | (1,413 | ) | 2,023 | ||||||||||
Accounts payable | — | 1 | 695 | (9 | ) | 687 | ||||||||||
Accounts payable—affiliates | 661 | — | — | (661 | ) | — | ||||||||||
Accrued expenses and other liabilities | 178 | 57 | 689 | — | 924 | |||||||||||
Advance billings and customers deposits | — | — | 452 | — | 452 | |||||||||||
Total current liabilities | 2,161 | 1,471 | 3,393 | (2,083 | ) | 4,942 | ||||||||||
LONG-TERM DEBT | 849 | 1,008 | 6,915 | — | 8,772 | |||||||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||||||||||
Deferred revenues | — | — | 192 | — | 192 | |||||||||||
Benefit plan obligations, net | 3,699 | — | — | — | 3,699 | |||||||||||
Pension, post-retirement and other post-employment benefits obligations and other—affiliates | — | 270 | 1,423 | (1,693 | ) | — | ||||||||||
Deferred income taxes | — | — | 2,761 | (2,267 | ) | 494 | ||||||||||
Other | 152 | 27 | 344 | — | 523 | |||||||||||
Total deferred credits and other liabilities | 3,851 | 297 | 4,720 | (3,960 | ) | 4,908 | ||||||||||
Stockholder's equity | 10,624 | 14,322 | 13,478 | (27,800 | ) | 10,624 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 17,485 | 17,098 | 28,506 | (33,843 | ) | 29,246 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (106 | ) | 643 | 1,888 | — | 2,425 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Payments for property, plant and equipment and capitalized software | — | — | (1,266 | ) | — | (1,266 | ) | |||||||||
Changes in advances to affiliates | (188 | ) | (1,242 | ) | 223 | (500 | ) | (1,707 | ) | |||||||
Other, net | 300 | 950 | — | (1,250 | ) | — | ||||||||||
Net cash (used in) provided by investing activities | 112 | (292 | ) | (1,043 | ) | (1,750 | ) | (2,973 | ) | |||||||
FINANCING ACTIVITIES | ||||||||||||||||
Net proceeds from issuance of long-term debt | — | — | 752 | — | 752 | |||||||||||
Payments of long-term debt | — | — | (835 | ) | — | (835 | ) | |||||||||
Changes in notes payable—affiliates | 636 | — | 40 | — | 676 | |||||||||||
Changes in advances from affiliates | (651 | ) | (30 | ) | 161 | 500 | (20 | ) | ||||||||
Dividends paid to parent | — | (300 | ) | (950 | ) | 1,250 | — | |||||||||
Net cash provided by (used in) financing activities | (15 | ) | (330 | ) | (832 | ) | 1,750 | 573 | ||||||||
Net (decrease) increase in cash and cash equivalents | (9 | ) | 21 | 13 | — | 25 | ||||||||||
Cash and cash equivalents at beginning of period | 11 | 59 | 17 | — | 87 | |||||||||||
Cash and cash equivalents at end of the period | $ | 2 | 80 | 30 | — | 112 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
QWEST COMMUNICATIONS INTERNATIONAL INC. | ||||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (479 | ) | 502 | 2,007 | (13 | ) | 2,017 | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Payments for property, plant and equipment and capitalized software | — | — | (1,121 | ) | — | (1,121 | ) | |||||||||
Changes in advances to affiliates—notes | 184 | 280 | 278 | (770 | ) | (28 | ) | |||||||||
Changes in advances to affiliates—accounts | — | (734 | ) | (1,061 | ) | 1,795 | — | |||||||||
Dividends received from subsidiaries | 750 | 700 | — | (1,450 | ) | — | ||||||||||
Proceeds from sale of property | — | — | 133 | — | 133 | |||||||||||
Net cash (used in) provided by investing activities | 934 | 246 | (1,771 | ) | (425 | ) | (1,016 | ) | ||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Net proceeds from issuance of long-term debt | — | — | 896 | — | 896 | |||||||||||
Payments of long-term debt | (1,302 | ) | — | (1,459 | ) | — | (2,761 | ) | ||||||||
Early retirement of debt costs | (49 | ) | — | (129 | ) | — | (178 | ) | ||||||||
Dividends paid to parent | (750 | ) | (750 | ) | (700 | ) | 1,450 | (750 | ) | |||||||
Changes in advances from affiliates—notes | 1,178 | — | 685 | 122 | 1,985 | |||||||||||
Changes in advances from affiliates—accounts | 468 | — | 479 | (1,134 | ) | (187 | ) | |||||||||
Net cash (used in) provided by financing activities | (455 | ) | (750 | ) | (228 | ) | 438 | (995 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | — | (2 | ) | 8 | — | 6 | ||||||||||
Cash and cash equivalents at beginning of period | — | 40 | 8 | — | 48 | |||||||||||
Cash and cash equivalents at end of the period | $ | — | 38 | 16 | — | 54 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. |
LongTerm_Debt_and_Revolving_Pr1
Long-Term Debt and Revolving Promissory Notes (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Schedule of long-term debt, including unamortized discounts and premiums | ' | ||||||||||
Long-term debt, including unamortized discounts and premiums, is as follows: | |||||||||||
Interest Rates | Maturities | 30-Sep-13 | 31-Dec-12 | ||||||||
(Dollars in millions) | |||||||||||
Qwest Communications International Inc. | |||||||||||
Senior notes | 7.12% | 2018 | $ | 800 | 800 | ||||||
Unamortized premiums | 43 | 49 | |||||||||
Qwest Capital Funding | |||||||||||
Senior notes | 6.500% - 7.750% | 2018 - 2031 | 981 | 981 | |||||||
Unamortized premiums, net | 25 | 27 | |||||||||
Qwest Corporation | |||||||||||
Senior notes | 6.125% - 8.375% | 2014 - 2053 | 7,411 | 7,386 | |||||||
Capital lease and other obligations | Various | Various | 85 | 113 | |||||||
Unamortized premiums, net | 86 | 127 | |||||||||
Qwest Communications Company, LLC | |||||||||||
Capital lease and other obligations | Various | Various | 123 | 145 | |||||||
Total long-term debt | 9,554 | 9,628 | |||||||||
Less current maturities | (98 | ) | (856 | ) | |||||||
Long-term debt, excluding current maturities | $ | 9,456 | 8,772 | ||||||||
Severance_and_Leased_Real_Esta1
Severance and Leased Real Estate (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Restructuring and Related Activities [Abstract] | ' | ||||||
Schedule of changes in accrued liabilities for severance expenses and leased real estate | ' | ||||||
Changes in our accrued liabilities for severance expenses and leased real estate were as follows: | |||||||
Severance | Real Estate | ||||||
(Dollars in millions) | |||||||
Balance at December 31, 2012 | $ | 7 | 131 | ||||
Accrued to expense | 6 | — | |||||
Payments, net | (9 | ) | (12 | ) | |||
Reversals and adjustments | — | (2 | ) | ||||
Balance at September 30, 2013 | $ | 4 | 117 | ||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Pension Plans | ' | ||||||||||||
Employee Benefits | ' | ||||||||||||
Schedule of components of net periodic pension benefit (income) expense and post-retirement benefit expense (income) | ' | ||||||||||||
Net periodic pension benefit (income) expense included the following components: | |||||||||||||
Pension Plans | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
Service cost | $ | 13 | 15 | 43 | 44 | ||||||||
Interest cost | 83 | 97 | 250 | 293 | |||||||||
Expected return on plan assets | (149 | ) | (144 | ) | (447 | ) | (432 | ) | |||||
Recognition of actuarial loss | 2 | — | 5 | — | |||||||||
Net periodic pension benefit (income) expense | $ | (51 | ) | (32 | ) | (149 | ) | (95 | ) | ||||
Post-Retirement Benefit Plans | ' | ||||||||||||
Employee Benefits | ' | ||||||||||||
Schedule of components of net periodic pension benefit (income) expense and post-retirement benefit expense (income) | ' | ||||||||||||
Net periodic post-retirement benefit expense (income) included the following components: | |||||||||||||
Post-Retirement Benefit Plans | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
Service cost | $ | 3 | 2 | 9 | 6 | ||||||||
Interest cost | 30 | 37 | 88 | 110 | |||||||||
Expected return on plan assets | (9 | ) | (10 | ) | (27 | ) | (31 | ) | |||||
Recognition of actuarial loss | 1 | — | 3 | — | |||||||||
Net periodic post-retirement benefit expense (income) | $ | 25 | 29 | 73 | 85 | ||||||||
Fair_Value_Disclosure_Tables
Fair Value Disclosure (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Schedule of the three input levels in the hierarchy of fair value measurements | ' | ||||||||||||||
The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows: | |||||||||||||||
Input 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 investment securities reported in noncurrent other assets, and long-term debt, excluding capital lease obligations, and input levels to determine fair values | ' | ||||||||||||||
The following table presents the carrying amounts and estimated fair values of our long-term debt, excluding capital lease obligations, as well as the input level used to determine the fair values: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||
Input | Carrying | Fair Value | Carrying | Fair Value | |||||||||||
Level | Amount | Amount | |||||||||||||
(Dollars in millions) | |||||||||||||||
Liabilities—Long-term debt, excluding capital lease obligations | 2 | $ | 9,346 | 9,225 | 9,370 | 9,909 | |||||||||
Products_and_Services_Revenues1
Products and Services Revenues (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of operating revenues by products and services | ' | ||||||||||||
Our operating revenues for our products and services consisted of the following categories: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
Strategic services | $ | 1,313 | 1,258 | 3,886 | 3,715 | ||||||||
Legacy services | 1,113 | 1,197 | 3,395 | 3,681 | |||||||||
Data integration | 138 | 137 | 385 | 393 | |||||||||
Affiliates and other services | 284 | 233 | 818 | 711 | |||||||||
Total operating revenues | $ | 2,848 | 2,825 | 8,484 | 8,500 | ||||||||
Schedule of aggregate USF surcharges recognized on a gross basis | ' | ||||||||||||
The table below presents the aggregate USF surcharges recognized on a gross basis: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||||
USF and surcharges included in operating revenues and expenses | $ | 90 | 95 | 278 | 298 | ||||||||
Other_Financial_Information_Ta
Other Financial Information (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ||||||
Schedule of other current assets | ' | ||||||
Other current assets reflected on our consolidated balance sheets consisted of the following: | |||||||
Other Current Assets | |||||||
30-Sep-13 | 31-Dec-12 | ||||||
(Dollars in millions) | |||||||
Prepaid expenses | $ | 197 | 195 | ||||
Other | 172 | 125 | |||||
Total other current assets | $ | 369 | 320 | ||||
Financial_Statements_of_Guaran1
Financial Statements of Guarantors (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Financial Statements of Guarantors | ' | |||||||||||||||
Schedule of condensed consolidating statements of operations | ' | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 8,024 | — | 8,024 | ||||||||||
Operating revenues—affiliates | — | 7 | 461 | (8 | ) | 460 | ||||||||||
Total operating revenues | — | 7 | 8,485 | (8 | ) | 8,484 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | 4 | 3,496 | — | 3,500 | |||||||||||
Selling, general and administrative | 242 | 10 | 1,223 | (2 | ) | 1,473 | ||||||||||
Operating expenses—affiliates | — | — | 577 | (6 | ) | 571 | ||||||||||
Depreciation and amortization | 32 | — | 2,017 | — | 2,049 | |||||||||||
Total operating expenses | 274 | 14 | 7,313 | (8 | ) | 7,593 | ||||||||||
OPERATING (LOSS) INCOME | (274 | ) | (7 | ) | 1,172 | — | 891 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (37 | ) | (52 | ) | (337 | ) | — | (426 | ) | |||||||
Interest expense—affiliates | (105 | ) | (84 | ) | (91 | ) | 78 | (202 | ) | |||||||
Interest income—affiliates | — | 79 | 1 | (78 | ) | 2 | ||||||||||
Income from equity investments in subsidiaries | 597 | 253 | — | (850 | ) | — | ||||||||||
Other income | 5 | — | 1 | — | 6 | |||||||||||
Total other income (expense) | 460 | 196 | (426 | ) | (850 | ) | (620 | ) | ||||||||
INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) | 186 | 189 | 746 | (850 | ) | 271 | ||||||||||
Income tax benefit (expense) | 8 | 408 | (493 | ) | — | (77 | ) | |||||||||
NET INCOME (LOSS) | $ | 194 | 597 | 253 | (850 | ) | 194 | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 199 | 597 | 253 | (850 | ) | 199 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 2,712 | — | 2,712 | ||||||||||
Operating revenues—affiliates | — | — | 113 | — | 113 | |||||||||||
Total operating revenues | — | — | 2,825 | — | 2,825 | |||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | — | 1,227 | — | 1,227 | |||||||||||
Selling, general and administrative | 2 | — | 382 | — | 384 | |||||||||||
Operating expenses—affiliates | — | — | 165 | — | 165 | |||||||||||
Depreciation and amortization | 15 | — | 712 | — | 727 | |||||||||||
Total operating expenses | 17 | — | 2,486 | — | 2,503 | |||||||||||
OPERATING (LOSS) INCOME | (17 | ) | — | 339 | — | 322 | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (21 | ) | (17 | ) | (109 | ) | — | (147 | ) | |||||||
Interest expense—affiliates | (26 | ) | (28 | ) | (11 | ) | 28 | (37 | ) | |||||||
Interest income—affiliates | — | 28 | — | (28 | ) | — | ||||||||||
Income from equity investments in subsidiaries | 144 | 75 | — | (219 | ) | — | ||||||||||
Net gain (loss) on early retirement of debt | 12 | — | (13 | ) | — | (1 | ) | |||||||||
Other income (expense) | (14 | ) | — | 14 | — | — | ||||||||||
Total other income (expense) | 95 | 58 | (119 | ) | (219 | ) | (185 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE) | 78 | 58 | 220 | (219 | ) | 137 | ||||||||||
Income tax benefit (expense) | 5 | 86 | (145 | ) | — | (54 | ) | |||||||||
NET INCOME (LOSS) | $ | 83 | 144 | 75 | (219 | ) | 83 | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 83 | 144 | 75 | (219 | ) | 83 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 2,680 | — | 2,680 | ||||||||||
Operating revenues—affiliates | — | (1 | ) | 169 | — | 168 | ||||||||||
Total operating revenues | — | (1 | ) | 2,849 | — | 2,848 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | — | 1,216 | — | 1,216 | |||||||||||
Selling, general and administrative | 220 | — | 408 | (2 | ) | 626 | ||||||||||
Operating expenses—affiliates | — | — | 201 | 2 | 203 | |||||||||||
Depreciation and amortization | 9 | — | 678 | — | 687 | |||||||||||
Total operating expenses | 229 | — | 2,503 | — | 2,732 | |||||||||||
OPERATING (LOSS) INCOME | (229 | ) | (1 | ) | 346 | — | 116 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (12 | ) | (17 | ) | (115 | ) | — | (144 | ) | |||||||
Interest expense—affiliates | (34 | ) | (28 | ) | (37 | ) | 25 | (74 | ) | |||||||
Interest income—affiliates | — | 26 | — | (25 | ) | 1 | ||||||||||
Income from equity investments in subsidiaries | 211 | 46 | — | (257 | ) | — | ||||||||||
Other income | 1 | — | 1 | — | 2 | |||||||||||
Total other income (expense) | 166 | 27 | (151 | ) | (257 | ) | (215 | ) | ||||||||
(LOSS) INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) | (63 | ) | 26 | 195 | (257 | ) | (99 | ) | ||||||||
Income tax benefit (expense) | 2 | 185 | (149 | ) | — | 38 | ||||||||||
NET (LOSS) INCOME | $ | (61 | ) | 211 | 46 | (257 | ) | (61 | ) | |||||||
COMPREHENSIVE (LOSS) INCOME | $ | (59 | ) | 211 | 46 | (257 | ) | (59 | ) | |||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Operating revenues | $ | — | — | 8,173 | — | 8,173 | ||||||||||
Operating revenues—affiliates | — | 3 | 327 | (3 | ) | 327 | ||||||||||
Total operating revenues | — | 3 | 8,500 | (3 | ) | 8,500 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of services and products (exclusive of depreciation and amortization) | — | — | 3,615 | — | 3,615 | |||||||||||
Selling, general and administrative | 5 | 3 | 1,304 | — | 1,312 | |||||||||||
Operating expenses—affiliates | — | — | 467 | (3 | ) | 464 | ||||||||||
Depreciation and amortization | 49 | — | 2,157 | — | 2,206 | |||||||||||
Total operating expenses | 54 | 3 | 7,543 | (3 | ) | 7,597 | ||||||||||
OPERATING (LOSS) INCOME | (54 | ) | — | 957 | — | 903 | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (85 | ) | (51 | ) | (335 | ) | — | (471 | ) | |||||||
Interest expense—affiliates | (48 | ) | (82 | ) | (22 | ) | 81 | (71 | ) | |||||||
Interest income—affiliates | — | 81 | — | (81 | ) | — | ||||||||||
Income from equity investments in subsidiaries | 361 | 135 | — | (496 | ) | — | ||||||||||
Net gain (loss) on early retirement of debt | 12 | — | (50 | ) | — | (38 | ) | |||||||||
Other income (expense) | (1 | ) | — | 4 | — | 3 | ||||||||||
Total other income (expense) | 239 | 83 | (403 | ) | (496 | ) | (577 | ) | ||||||||
INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) | 185 | 83 | 554 | (496 | ) | 326 | ||||||||||
Income tax benefit (expense) | 12 | 278 | (419 | ) | — | (129 | ) | |||||||||
NET INCOME | $ | 197 | 361 | 135 | (496 | ) | 197 | |||||||||
COMPREHENSIVE INCOME | $ | 197 | 361 | 135 | (496 | ) | 197 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
Schedule of condensed consolidating balance sheets | ' | |||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||
DECEMBER 31, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 11 | 59 | 17 | — | 87 | ||||||||||
Accounts receivable, less allowance | 10 | — | 1,167 | — | 1,177 | |||||||||||
Advances to affiliates | — | 938 | 223 | (661 | ) | 500 | ||||||||||
Notes receivable—affiliates | — | 1,413 | — | (1,413 | ) | — | ||||||||||
Deferred income taxes, net | — | 272 | 201 | — | 473 | |||||||||||
Other | 8 | — | 321 | (9 | ) | 320 | ||||||||||
Total current assets | 29 | 2,682 | 1,929 | (2,083 | ) | 2,557 | ||||||||||
Net property, plant and equipment | — | — | 9,127 | — | 9,127 | |||||||||||
Goodwill | — | — | 10,123 | — | 10,123 | |||||||||||
Customer relationships, net | — | — | 5,822 | — | 5,822 | |||||||||||
Other intangible assets, net | 64 | — | 1,213 | — | 1,277 | |||||||||||
Investments in subsidiaries | 14,322 | 13,478 | — | (27,800 | ) | — | ||||||||||
Deferred income taxes, net | 1,336 | 931 | — | (2,267 | ) | — | ||||||||||
Prepaid pension, post-retirement and other post-employment benefits—affiliate | 1,697 | — | — | (1,693 | ) | 4 | ||||||||||
Other | 37 | 7 | 292 | — | 336 | |||||||||||
TOTAL ASSETS | $ | 17,485 | 17,098 | 28,506 | (33,843 | ) | 29,246 | |||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Current maturities of long-term debt | $ | — | — | 856 | — | 856 | ||||||||||
Notes payable—affiliates | 1,322 | 1,413 | 701 | (1,413 | ) | 2,023 | ||||||||||
Accounts payable | — | 1 | 695 | (9 | ) | 687 | ||||||||||
Accounts payable—affiliates | 661 | — | — | (661 | ) | — | ||||||||||
Accrued expenses and other liabilities | 178 | 57 | 689 | — | 924 | |||||||||||
Advance billings and customers deposits | — | — | 452 | — | 452 | |||||||||||
Total current liabilities | 2,161 | 1,471 | 3,393 | (2,083 | ) | 4,942 | ||||||||||
LONG-TERM DEBT | 849 | 1,008 | 6,915 | — | 8,772 | |||||||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||||||||||
Deferred revenues | — | — | 192 | — | 192 | |||||||||||
Benefit plan obligations, net | 3,699 | — | — | — | 3,699 | |||||||||||
Pension, post-retirement and other post-employment benefits obligations and other—affiliates | — | 270 | 1,423 | (1,693 | ) | — | ||||||||||
Deferred income taxes | — | — | 2,761 | (2,267 | ) | 494 | ||||||||||
Other | 152 | 27 | 344 | — | 523 | |||||||||||
Total deferred credits and other liabilities | 3,851 | 297 | 4,720 | (3,960 | ) | 4,908 | ||||||||||
Stockholder's equity | 10,624 | 14,322 | 13,478 | (27,800 | ) | 10,624 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 17,485 | 17,098 | 28,506 | (33,843 | ) | 29,246 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||
SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 2 | 80 | 30 | — | 112 | ||||||||||
Accounts receivable, less allowance | 11 | — | 1,189 | — | 1,200 | |||||||||||
Notes receivable—affiliates | — | 1,413 | — | (1,413 | ) | — | ||||||||||
Advances to affiliates | 188 | 2,180 | — | (161 | ) | 2,207 | ||||||||||
Deferred income taxes, net | — | 439 | 148 | — | 587 | |||||||||||
Other | — | — | 369 | — | 369 | |||||||||||
Total current assets | 201 | 4,112 | 1,736 | (1,574 | ) | 4,475 | ||||||||||
Net property, plant and equipment | — | — | 9,205 | — | 9,205 | |||||||||||
Goodwill | — | — | 10,123 | — | 10,123 | |||||||||||
Customer relationships, net | — | — | 5,132 | — | 5,132 | |||||||||||
Other intangible assets, net | 32 | — | 1,063 | — | 1,095 | |||||||||||
Investments in subsidiaries | 14,619 | 12,781 | — | (27,400 | ) | — | ||||||||||
Deferred income taxes, net | 1,331 | 473 | — | (1,804 | ) | — | ||||||||||
Prepaid pension, post-retirement and other post-employment benefits—affiliate | 1,574 | — | — | (1,570 | ) | 4 | ||||||||||
Other | 37 | 7 | 321 | — | 365 | |||||||||||
TOTAL ASSETS | $ | 17,794 | 17,373 | 27,580 | (32,348 | ) | 30,399 | |||||||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Current maturities of long-term debt | $ | — | — | 98 | — | 98 | ||||||||||
Notes payable—affiliates | 1,958 | 1,413 | 741 | (1,413 | ) | 2,699 | ||||||||||
Accounts payable | (1 | ) | — | 679 | — | 678 | ||||||||||
Accounts payable—affiliates | — | — | 161 | (161 | ) | — | ||||||||||
Accrued expenses and other liabilities | 442 | 14 | 745 | — | 1,201 | |||||||||||
Advance billings and customers deposits | — | — | 463 | — | 463 | |||||||||||
Total current liabilities | 2,399 | 1,427 | 2,887 | (1,574 | ) | 5,139 | ||||||||||
LONG-TERM DEBT | 843 | 1,007 | 7,606 | — | 9,456 | |||||||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||||||||||
Deferred revenues | — | — | 209 | — | 209 | |||||||||||
Benefit plan obligations, net | 3,573 | — | — | — | 3,573 | |||||||||||
Pension, post-retirement and other post-employment benefits obligations and other—affiliates | — | 290 | 1,280 | (1,570 | ) | — | ||||||||||
Deferred income taxes | — | — | 2,510 | (1,804 | ) | 706 | ||||||||||
Other | 156 | 30 | 307 | — | 493 | |||||||||||
Total deferred credits and other liabilities | 3,729 | 320 | 4,306 | (3,374 | ) | 4,981 | ||||||||||
Stockholder's equity | 10,823 | 14,619 | 12,781 | (27,400 | ) | 10,823 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 17,794 | 17,373 | 27,580 | (32,348 | ) | 30,399 | |||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
Schedule of condensed consolidating statements of cash flows | ' | |||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (479 | ) | 502 | 2,007 | (13 | ) | 2,017 | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Payments for property, plant and equipment and capitalized software | — | — | (1,121 | ) | — | (1,121 | ) | |||||||||
Changes in advances to affiliates—notes | 184 | 280 | 278 | (770 | ) | (28 | ) | |||||||||
Changes in advances to affiliates—accounts | — | (734 | ) | (1,061 | ) | 1,795 | — | |||||||||
Dividends received from subsidiaries | 750 | 700 | — | (1,450 | ) | — | ||||||||||
Proceeds from sale of property | — | — | 133 | — | 133 | |||||||||||
Net cash (used in) provided by investing activities | 934 | 246 | (1,771 | ) | (425 | ) | (1,016 | ) | ||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Net proceeds from issuance of long-term debt | — | — | 896 | — | 896 | |||||||||||
Payments of long-term debt | (1,302 | ) | — | (1,459 | ) | — | (2,761 | ) | ||||||||
Early retirement of debt costs | (49 | ) | — | (129 | ) | — | (178 | ) | ||||||||
Dividends paid to parent | (750 | ) | (750 | ) | (700 | ) | 1,450 | (750 | ) | |||||||
Changes in advances from affiliates—notes | 1,178 | — | 685 | 122 | 1,985 | |||||||||||
Changes in advances from affiliates—accounts | 468 | — | 479 | (1,134 | ) | (187 | ) | |||||||||
Net cash (used in) provided by financing activities | (455 | ) | (750 | ) | (228 | ) | 438 | (995 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | — | (2 | ) | 8 | — | 6 | ||||||||||
Cash and cash equivalents at beginning of period | — | 40 | 8 | — | 48 | |||||||||||
Cash and cash equivalents at end of the period | $ | — | 38 | 16 | — | 54 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
QCII(1) | QSC(2) & | Subsidiary | Eliminations | QCII | ||||||||||||
QCF(3) | Non- | Consolidated | ||||||||||||||
Guarantors | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (106 | ) | 643 | 1,888 | — | 2,425 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Payments for property, plant and equipment and capitalized software | — | — | (1,266 | ) | — | (1,266 | ) | |||||||||
Changes in advances to affiliates | (188 | ) | (1,242 | ) | 223 | (500 | ) | (1,707 | ) | |||||||
Other, net | 300 | 950 | — | (1,250 | ) | — | ||||||||||
Net cash (used in) provided by investing activities | 112 | (292 | ) | (1,043 | ) | (1,750 | ) | (2,973 | ) | |||||||
FINANCING ACTIVITIES | ||||||||||||||||
Net proceeds from issuance of long-term debt | — | — | 752 | — | 752 | |||||||||||
Payments of long-term debt | — | — | (835 | ) | — | (835 | ) | |||||||||
Changes in notes payable—affiliates | 636 | — | 40 | — | 676 | |||||||||||
Changes in advances from affiliates | (651 | ) | (30 | ) | 161 | 500 | (20 | ) | ||||||||
Dividends paid to parent | — | (300 | ) | (950 | ) | 1,250 | — | |||||||||
Net cash provided by (used in) financing activities | (15 | ) | (330 | ) | (832 | ) | 1,750 | 573 | ||||||||
Net (decrease) increase in cash and cash equivalents | (9 | ) | 21 | 13 | — | 25 | ||||||||||
Cash and cash equivalents at beginning of period | 11 | 59 | 17 | — | 87 | |||||||||||
Cash and cash equivalents at end of the period | $ | 2 | 80 | 30 | — | 112 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||||||||||
(2) | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||||||||||
(3) | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. |
Basis_of_Presentation_Details
Basis of Presentation (Details) | Sep. 30, 2013 |
state | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of states in which service is provided (states) | 14 |
LongTerm_Debt_and_Revolving_Pr2
Long-Term Debt and Revolving Promissory Notes (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 23-May-13 | Jun. 17, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Qwest Communications International Inc. | Qwest Communications International Inc. | Qwest Corporation | Qwest Corporation | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Capital lease and other obligations | Capital lease and other obligations | Capital lease and other obligations | Capital lease and other obligations | 6.125% Notes due 2053 | Floating rate notes due 2013 | Revolving promissory note | Revolving promissory note, two | |||||
Qwest Communications International Inc. | Qwest Communications International Inc. | Qwest Capital Funding | Qwest Capital Funding | Qwest Capital Funding | Qwest Capital Funding | Qwest Corporation | Qwest Corporation | Qwest Corporation | Qwest Corporation | Qwest Corporation | Qwest Corporation | Qwest Communications Company, LLC | Qwest Communications Company, LLC | Qwest Corporation | Qwest Corporation | Qwest Communications International Inc. | Qwest Corporation | |||||||||
Minimum | Maximum | Minimum | Maximum | CenturyLink, Inc. affiliate | CenturyLink, Inc. affiliate | |||||||||||||||||||||
Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest Rates (as a percent) | ' | ' | ' | ' | ' | ' | 7.13% | ' | ' | ' | 6.50% | 7.75% | ' | ' | 6.13% | 8.38% | ' | ' | ' | ' | 6.13% | ' | ' | ' | ||
Amount outstanding | ' | ' | ' | ' | ' | ' | $800,000,000 | $800,000,000 | $981,000,000 | $981,000,000 | ' | ' | $7,411,000,000 | $7,386,000,000 | ' | ' | $85,000,000 | $113,000,000 | $123,000,000 | $145,000,000 | ' | ' | ' | ' | ||
Unamortized premiums, net | ' | ' | ' | ' | -86,000,000 | -127,000,000 | -43,000,000 | -49,000,000 | -25,000,000 | -27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total long-term debt | 9,554,000,000 | 9,628,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Less current maturities | -98,000,000 | -856,000,000 | 0 | [1] | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, excluding current maturities | 9,456,000,000 | 8,772,000,000 | 843,000,000 | [1] | 849,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 775,000,000 | ' | ' | ' | ||
Principal amount of debt that was sold pursuant to an over-allotment option granted to the underwriters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ||
Net proceeds from issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 752,000,000 | ' | ' | ' | ||
Redemption price as a percentage of principal amount of notes plus accrued and unpaid interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ||
Principal amount of notes repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ||
Maximum borrowing capacity available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | 1,000,000,000 | ||
Revolving Promissory Note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,958,000,000 | $741,000,000 | ||
Weighted average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.78% | ' | ||
[1] | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. |
Severance_and_Leased_Real_Esta2
Severance and Leased Real Estate (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Severance | ' |
Changes in the entity's accrued liabilities for severance expenses and leased real estate | ' |
Balance at the beginning of the period | $7 |
Accrued to expense | 6 |
Payments, net | -9 |
Reversals and adjustments | 0 |
Balance at the end of period | 4 |
Acquisition of Qwest | Leased real estate | ' |
Severance and Leased Real Estate | ' |
Current portion of leased real estate accrual | 18 |
Long-term portion of leased real estate accrual | 99 |
Changes in the entity's accrued liabilities for severance expenses and leased real estate | ' |
Balance at the beginning of the period | 131 |
Accrued to expense | 0 |
Payments, net | -12 |
Reversals and adjustments | -2 |
Balance at the end of period | $117 |
Acquisition of Qwest | Ceased-use leased real estate accrual | Leased real estate | Minimum | ' |
Severance and Leased Real Estate | ' |
Remaining lease terms | '3 months 29 days |
Acquisition of Qwest | Ceased-use leased real estate accrual | Leased real estate | Maximum | ' |
Severance and Leased Real Estate | ' |
Remaining lease terms | '12 years 3 months 18 days |
Acquisition of Qwest | Ceased-use leased real estate accrual | Leased real estate | Weighted average | ' |
Severance and Leased Real Estate | ' |
Remaining lease terms | '8 years 8 months 12 days |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans | ' | ' | ' | ' |
Components of net periodic benefit expense (income): | ' | ' | ' | ' |
Service cost | $13 | $15 | $43 | $44 |
Interest cost | 83 | 97 | 250 | 293 |
Expected return on plan assets | -149 | -144 | -447 | -432 |
Recognition of actuarial loss | 2 | 0 | 5 | 0 |
Net periodic benefit (income) expense | -51 | -32 | -149 | -95 |
Post-Retirement Benefit Plans | ' | ' | ' | ' |
Components of net periodic benefit expense (income): | ' | ' | ' | ' |
Service cost | 3 | 2 | 9 | 6 |
Interest cost | 30 | 37 | 88 | 110 |
Expected return on plan assets | -9 | -10 | -27 | -31 |
Recognition of actuarial loss | 1 | 0 | 3 | 0 |
Net periodic benefit (income) expense | $25 | $29 | $73 | $85 |
Fair_Value_Disclosure_Details
Fair Value Disclosure (Details) (Fair Value, Inputs, Level 2 [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosure | ' | ' |
Long-term Debt, Fair Value | $9,225 | $9,909 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Fair Value Disclosure | ' | ' |
Long-term Debt, Fair Value | $9,346 | $9,370 |
Products_and_Services_Revenues2
Products and Services Revenues (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | ||||
category | ||||
Products and Services Revenues | ' | ' | ' | ' |
Number of categories of products and services revenues (categories) | ' | ' | 4 | ' |
Total operating revenues | $2,848 | $2,825 | $8,484 | $8,500 |
USF and surcharges included in operating revenues and expenses | 90 | 95 | 278 | 298 |
Number of reportable segments (segments) | ' | ' | 1 | ' |
Strategic services | ' | ' | ' | ' |
Products and Services Revenues | ' | ' | ' | ' |
Total operating revenues | 1,313 | 1,258 | 3,886 | 3,715 |
Legacy services | ' | ' | ' | ' |
Products and Services Revenues | ' | ' | ' | ' |
Total operating revenues | 1,113 | 1,197 | 3,395 | 3,681 |
Data integration | ' | ' | ' | ' |
Products and Services Revenues | ' | ' | ' | ' |
Total operating revenues | 138 | 137 | 385 | 393 |
Affiliates and other services | ' | ' | ' | ' |
Products and Services Revenues | ' | ' | ' | ' |
Total operating revenues | $284 | $233 | $818 | $711 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jul. 16, 2013 | Sep. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2006 | Sep. 30, 2013 | Sep. 30, 2013 |
Comcast | KPNQwest, N.V. tort and mismanagement claims under Dutch law | KPNQwest, N.V. tort and mismanagement claims under Dutch law | KPNQwest, N.V. tort and mismanagement claims under Dutch law | Cargill Financial Markets, Plc and Citibank, N.A. | Cargill Financial Markets, Plc and Citibank, N.A. | Fiber-optic cable installation | |
USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | USD ($) | state | |
lawsuit | lawsuit | ||||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | ' |
Damages sought by plaintiff | $80 | € 4,200 | $5,700 | ' | € 219 | $296 | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | 233 | 172 | ' | ' | ' |
Loss Contingency, Loss in Period | ' | ' | $233 | € 172 | ' | ' | ' |
Number of lawsuits previously filed and dismissed (lawsuits) | ' | 2 | ' | ' | ' | ' | ' |
Number of states in which several putative class actions relating to the installation of fiber-optic cable were filed against the entity (states) | ' | ' | ' | ' | ' | ' | 34 |
Number of lawsuits previously filed (lawsuits) | ' | ' | ' | ' | ' | ' | 1 |
Number of states in which the entity has received final approval of settlements in connection with several putative class actions (states) | ' | ' | ' | ' | ' | ' | 29 |
Number of states in which preliminary approval of settlements have been received (states) | ' | ' | ' | ' | ' | ' | 1 |
Number of States in which Preliminary or Final Approval of Settlements have not been Received | ' | ' | ' | ' | ' | ' | 1 |
Number of states in which actions are not currently pending (states) | ' | ' | ' | ' | ' | ' | 3 |
Other_Financial_Information_De
Other Financial Information (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Prepaid expenses | $197 | $195 |
Other | 172 | 125 |
Total other current assets | $369 | $320 |
Labor_Union_Contracts_Details
Labor Union Contracts (Details) | 9 Months Ended | 0 Months Ended |
Sep. 30, 2013 | Jul. 30, 2013 | |
Collective bargaining agreements that expired on October 6, 2012 | Employees covered under collective bargaining agreements | |
Employee | Employee | |
Labor Union Contracts | ' | ' |
Number of employees subject to collective bargaining agreements (employees) | 12,000 | 12,000 |
Percentage of concentration risk (percent) | 48.00% | ' |
Period of labor contract | ' | '4 years |
Financial_Statements_of_Guaran2
Financial Statements of Guarantors (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 |
QSC and QCF | ' | ' |
Financial Statements of Guarantors | ' | ' |
Ownership percentage (percent) | ' | 100.00% |
Amount of effect of overstating or understating of operating cash flows | ($671) | ' |
QSC and QCF | Payment guarantees | QCII Guaranteed Notes | ' | ' |
Financial Statements of Guarantors | ' | ' |
Guaranteed principal outstanding debt instrument | ' | 800 |
QCII | Payment guarantees | QCF Guaranteed Notes | ' | ' |
Financial Statements of Guarantors | ' | ' |
Guaranteed principal outstanding debt instrument | ' | 981 |
Non-Guarantors | ' | ' |
Financial Statements of Guarantors | ' | ' |
Amount of effect of overstating or understating of operating cash flows | $671 | ' |
Financial_Statements_of_Guaran3
Financial Statements of Guarantors (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
OPERATING REVENUES | ' | ' | ' | ' | ||||
Operating revenues | $2,680 | $2,712 | $8,024 | $8,173 | ||||
Operating revenues-affiliates | 168 | 113 | 460 | 327 | ||||
Total operating revenues | 2,848 | 2,825 | 8,484 | 8,500 | ||||
OPERATING EXPENSES | ' | ' | ' | ' | ||||
Cost of services and products (exclusive of depreciation and amortization) | 1,216 | 1,227 | 3,500 | 3,615 | ||||
Selling, general and administrative | 626 | 384 | 1,473 | 1,312 | ||||
Operating expenses-affiliates | 203 | 165 | 571 | 464 | ||||
Depreciation and amortization | 687 | 727 | 2,049 | 2,206 | ||||
Total operating expenses | 2,732 | 2,503 | 7,593 | 7,597 | ||||
OPERATING INCOME | 116 | 322 | 891 | 903 | ||||
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ||||
Interest expense | -144 | -147 | -426 | -471 | ||||
Interest expense-affiliates | -74 | -37 | -202 | -71 | ||||
Interest income-affiliates | 1 | 0 | 2 | 0 | ||||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | ||||
Net gain (loss) on early retirement of debt | 0 | -1 | 0 | -38 | ||||
Other income (expense) | 2 | 0 | 6 | 3 | ||||
Total other income (expense) | -215 | -185 | -620 | -577 | ||||
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | -99 | 137 | 271 | 326 | ||||
Income tax (benefit) expense | 38 | -54 | -77 | -129 | ||||
NET (LOSS) INCOME | -61 | 83 | 194 | 197 | ||||
COMPREHENSIVE INCOME (LOSS) | -59 | 83 | 199 | 197 | ||||
QCII | ' | ' | ' | ' | ||||
OPERATING REVENUES | ' | ' | ' | ' | ||||
Operating revenues | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Operating revenues-affiliates | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Total operating revenues | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
OPERATING EXPENSES | ' | ' | ' | ' | ||||
Cost of services and products (exclusive of depreciation and amortization) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Selling, general and administrative | 220 | [1] | 2 | [1] | 242 | [1] | 5 | [1] |
Operating expenses-affiliates | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Depreciation and amortization | 9 | [1] | 15 | [1] | 32 | [1] | 49 | [1] |
Total operating expenses | 229 | [1] | 17 | [1] | 274 | [1] | 54 | [1] |
OPERATING INCOME | -229 | [1] | -17 | [1] | -274 | [1] | -54 | [1] |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ||||
Interest expense | -12 | [1] | -21 | [1] | -37 | [1] | -85 | [1] |
Interest expense-affiliates | -34 | [1] | -26 | [1] | -105 | [1] | -48 | [1] |
Interest income-affiliates | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Income from equity investments in subsidiaries | 211 | [1] | 144 | [1] | 597 | [1] | 361 | [1] |
Net gain (loss) on early retirement of debt | ' | 12 | [1] | ' | 12 | [1] | ||
Other income (expense) | 1 | [1] | -14 | [1] | 5 | [1] | -1 | [1] |
Total other income (expense) | 166 | [1] | 95 | [1] | 460 | [1] | 239 | [1] |
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | -63 | [1] | 78 | [1] | 186 | [1] | 185 | [1] |
Income tax (benefit) expense | 2 | [1] | 5 | [1] | 8 | [1] | 12 | [1] |
NET (LOSS) INCOME | -61 | [1] | 83 | [1] | 194 | [1] | 197 | [1] |
COMPREHENSIVE INCOME (LOSS) | -59 | [1] | 83 | [1] | 199 | [1] | 197 | [1] |
QSC and QCF | ' | ' | ' | ' | ||||
OPERATING REVENUES | ' | ' | ' | ' | ||||
Operating revenues | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] |
Operating revenues-affiliates | -1 | [2],[3] | 0 | [2],[3] | 7 | [2],[3] | 3 | [2],[3] |
Total operating revenues | -1 | [2],[3] | 0 | [2],[3] | 7 | [2],[3] | 3 | [2],[3] |
OPERATING EXPENSES | ' | ' | ' | ' | ||||
Cost of services and products (exclusive of depreciation and amortization) | 0 | [2],[3] | 0 | [2],[3] | 4 | [2],[3] | 0 | [2],[3] |
Selling, general and administrative | 0 | [2],[3] | 0 | [2],[3] | 10 | [2],[3] | 3 | [2],[3] |
Operating expenses-affiliates | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] |
Depreciation and amortization | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] |
Total operating expenses | 0 | [2],[3] | 0 | [2],[3] | 14 | [2],[3] | 3 | [2],[3] |
OPERATING INCOME | -1 | [2],[3] | 0 | [2],[3] | -7 | [2],[3] | 0 | [2],[3] |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ||||
Interest expense | -17 | [2],[3] | -17 | [2],[3] | -52 | [2],[3] | -51 | [2],[3] |
Interest expense-affiliates | -28 | [2],[3] | -28 | [2],[3] | -84 | [2],[3] | -82 | [2],[3] |
Interest income-affiliates | 26 | [2],[3] | 28 | [2],[3] | 79 | [2],[3] | 81 | [2],[3] |
Income from equity investments in subsidiaries | 46 | [2],[3] | 75 | [2],[3] | 253 | [2],[3] | 135 | [2],[3] |
Net gain (loss) on early retirement of debt | ' | 0 | [2],[3] | ' | 0 | [2],[3] | ||
Other income (expense) | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] |
Total other income (expense) | 27 | [2],[3] | 58 | [2],[3] | 196 | [2],[3] | 83 | [2],[3] |
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | 26 | [2],[3] | 58 | [2],[3] | 189 | [2],[3] | 83 | [2],[3] |
Income tax (benefit) expense | 185 | [2],[3] | 86 | [2],[3] | 408 | [2],[3] | 278 | [2],[3] |
NET (LOSS) INCOME | 211 | [2],[3] | 144 | [2],[3] | 597 | [2],[3] | 361 | [2],[3] |
COMPREHENSIVE INCOME (LOSS) | 211 | [2],[3] | 144 | [2],[3] | 597 | [2],[3] | 361 | [2],[3] |
Subsidiaries Non-Guarantors | ' | ' | ' | ' | ||||
OPERATING REVENUES | ' | ' | ' | ' | ||||
Operating revenues | 2,680 | 2,712 | 8,024 | 8,173 | ||||
Operating revenues-affiliates | 169 | 113 | 461 | 327 | ||||
Total operating revenues | 2,849 | 2,825 | 8,485 | 8,500 | ||||
OPERATING EXPENSES | ' | ' | ' | ' | ||||
Cost of services and products (exclusive of depreciation and amortization) | 1,216 | 1,227 | 3,496 | 3,615 | ||||
Selling, general and administrative | 408 | 382 | 1,223 | 1,304 | ||||
Operating expenses-affiliates | 201 | 165 | 577 | 467 | ||||
Depreciation and amortization | 678 | 712 | 2,017 | 2,157 | ||||
Total operating expenses | 2,503 | 2,486 | 7,313 | 7,543 | ||||
OPERATING INCOME | 346 | 339 | 1,172 | 957 | ||||
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ||||
Interest expense | -115 | -109 | -337 | -335 | ||||
Interest expense-affiliates | -37 | -11 | -91 | -22 | ||||
Interest income-affiliates | 0 | 0 | 1 | 0 | ||||
Income from equity investments in subsidiaries | 0 | 0 | 0 | 0 | ||||
Net gain (loss) on early retirement of debt | ' | -13 | ' | -50 | ||||
Other income (expense) | 1 | 14 | 1 | 4 | ||||
Total other income (expense) | -151 | -119 | -426 | -403 | ||||
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | 195 | 220 | 746 | 554 | ||||
Income tax (benefit) expense | -149 | -145 | -493 | -419 | ||||
NET (LOSS) INCOME | 46 | 75 | 253 | 135 | ||||
COMPREHENSIVE INCOME (LOSS) | 46 | 75 | 253 | 135 | ||||
Eliminations | ' | ' | ' | ' | ||||
OPERATING REVENUES | ' | ' | ' | ' | ||||
Operating revenues | 0 | 0 | 0 | 0 | ||||
Operating revenues-affiliates | 0 | 0 | -8 | -3 | ||||
Total operating revenues | 0 | 0 | -8 | -3 | ||||
OPERATING EXPENSES | ' | ' | ' | ' | ||||
Cost of services and products (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative | -2 | 0 | -2 | 0 | ||||
Operating expenses-affiliates | 2 | 0 | -6 | -3 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Total operating expenses | 0 | 0 | -8 | -3 | ||||
OPERATING INCOME | 0 | 0 | 0 | 0 | ||||
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Interest expense-affiliates | 25 | 28 | 78 | 81 | ||||
Interest income-affiliates | -25 | -28 | -78 | -81 | ||||
Income from equity investments in subsidiaries | -257 | -219 | -850 | -496 | ||||
Net gain (loss) on early retirement of debt | ' | 0 | ' | 0 | ||||
Other income (expense) | 0 | 0 | 0 | 0 | ||||
Total other income (expense) | -257 | -219 | -850 | -496 | ||||
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | -257 | -219 | -850 | -496 | ||||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||||
NET (LOSS) INCOME | -257 | -219 | -850 | -496 | ||||
COMPREHENSIVE INCOME (LOSS) | ($257) | ($219) | ($850) | ($496) | ||||
[1] | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||
[2] | QSC is a guarantor of the QCII Guaranteed Notes. | |||||||
[3] | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. |
Financial_Statements_of_Guaran4
Financial Statements of Guarantors (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||
In Millions, unless otherwise specified | ||||||||
CURRENT ASSETS | ' | ' | ' | ' | ||||
Cash and cash equivalents | $112 | $87 | $54 | $48 | ||||
Accounts receivable, less allowance | 1,200 | 1,177 | ' | ' | ||||
Notes receivable - affiliates | 0 | 0 | ' | ' | ||||
Advances to affiliates | 2,207 | 500 | ' | ' | ||||
Deferred income taxes, net | 587 | 473 | ' | ' | ||||
Other | 369 | 320 | ' | ' | ||||
Total current assets | 4,475 | 2,557 | ' | ' | ||||
Net property, plant and equipment | 9,205 | 9,127 | ' | ' | ||||
Goodwill | 10,123 | 10,123 | ' | ' | ||||
Customer relationships, net | 5,132 | 5,822 | ' | ' | ||||
Other intangible assets, net | 1,095 | 1,277 | ' | ' | ||||
Investments in subsidiaries | 0 | 0 | ' | ' | ||||
Deferred income taxes, net | 0 | 0 | ' | ' | ||||
Prepaid pension, post-retirement and other post-employment benefits-affiliate | 4 | 4 | ' | ' | ||||
Other | 365 | 336 | ' | ' | ||||
TOTAL ASSETS | 30,399 | 29,246 | ' | ' | ||||
CURRENT LIABILITIES | ' | ' | ' | ' | ||||
Current maturities of long-term debt | 98 | 856 | ' | ' | ||||
Notes payable-affiliates | 2,699 | 2,023 | ' | ' | ||||
Accounts payable | 678 | 687 | ' | ' | ||||
Accounts payable - affiliates | 0 | 0 | ' | ' | ||||
Accrued expenses and other liabilities | 1,201 | 924 | ' | ' | ||||
Advance billings and customers deposits | 463 | 452 | ' | ' | ||||
Total current liabilities | 5,139 | 4,942 | ' | ' | ||||
LONG-TERM DEBT | 9,456 | 8,772 | ' | ' | ||||
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' | ' | ' | ||||
Deferred revenues | 209 | 192 | ' | ' | ||||
Benefit plan obligations, net | 3,573 | 3,699 | ' | ' | ||||
Pension, post-retirement and other post-employment benefits obligations and other - affiliates | 0 | 0 | ' | ' | ||||
Deferred income taxes | 706 | 494 | ' | ' | ||||
Other | 493 | 523 | ' | ' | ||||
Total deferred credits and other liabilities | 4,981 | 4,908 | ' | ' | ||||
Stockholder's equity | 10,823 | 10,624 | 10,885 | ' | ||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 30,399 | 29,246 | ' | ' | ||||
QCII | ' | ' | ' | ' | ||||
CURRENT ASSETS | ' | ' | ' | ' | ||||
Cash and cash equivalents | 2 | [1] | 11 | [1] | 0 | [1] | 0 | [1] |
Accounts receivable, less allowance | 11 | [1] | 10 | [1] | ' | ' | ||
Notes receivable - affiliates | 0 | [1] | 0 | [1] | ' | ' | ||
Advances to affiliates | 188 | [1] | 0 | [1] | ' | ' | ||
Deferred income taxes, net | 0 | [1] | 0 | [1] | ' | ' | ||
Other | 0 | [1] | 8 | [1] | ' | ' | ||
Total current assets | 201 | [1] | 29 | [1] | ' | ' | ||
Net property, plant and equipment | 0 | [1] | 0 | [1] | ' | ' | ||
Goodwill | 0 | [1] | 0 | [1] | ' | ' | ||
Customer relationships, net | 0 | [1] | 0 | [1] | ' | ' | ||
Other intangible assets, net | 32 | [1] | 64 | [1] | ' | ' | ||
Investments in subsidiaries | 14,619 | [1] | 14,322 | [1] | ' | ' | ||
Deferred income taxes, net | 1,331 | [1] | 1,336 | [1] | ' | ' | ||
Prepaid pension, post-retirement and other post-employment benefits-affiliate | 1,574 | [1] | 1,697 | [1] | ' | ' | ||
Other | 37 | [1] | 37 | [1] | ' | ' | ||
TOTAL ASSETS | 17,794 | [1] | 17,485 | [1] | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||||
Current maturities of long-term debt | 0 | [1] | 0 | [1] | ' | ' | ||
Notes payable-affiliates | 1,958 | [1] | 1,322 | [1] | ' | ' | ||
Accounts payable | -1 | [1] | 0 | [1] | ' | ' | ||
Accounts payable - affiliates | 0 | [1] | 661 | [1] | ' | ' | ||
Accrued expenses and other liabilities | 442 | [1] | 178 | [1] | ' | ' | ||
Advance billings and customers deposits | 0 | [1] | 0 | [1] | ' | ' | ||
Total current liabilities | 2,399 | [1] | 2,161 | [1] | ' | ' | ||
LONG-TERM DEBT | 843 | [1] | 849 | [1] | ' | ' | ||
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' | ' | ' | ||||
Deferred revenues | 0 | [1] | 0 | [1] | ' | ' | ||
Benefit plan obligations, net | 3,573 | [1] | 3,699 | [1] | ' | ' | ||
Pension, post-retirement and other post-employment benefits obligations and other - affiliates | 0 | [1] | 0 | [1] | ' | ' | ||
Deferred income taxes | 0 | [1] | 0 | [1] | ' | ' | ||
Other | 156 | [1] | 152 | [1] | ' | ' | ||
Total deferred credits and other liabilities | 3,729 | [1] | 3,851 | [1] | ' | ' | ||
Stockholder's equity | 10,823 | [1] | 10,624 | [1] | ' | ' | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 17,794 | [1] | 17,485 | [1] | ' | ' | ||
QSC and QCF | ' | ' | ' | ' | ||||
CURRENT ASSETS | ' | ' | ' | ' | ||||
Cash and cash equivalents | 80 | [2],[3] | 59 | [2],[3] | 38 | [2],[3] | 40 | [2],[3] |
Accounts receivable, less allowance | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Notes receivable - affiliates | 1,413 | [2],[3] | 1,413 | [2],[3] | ' | ' | ||
Advances to affiliates | 2,180 | [2],[3] | 938 | [2],[3] | ' | ' | ||
Deferred income taxes, net | 439 | [2],[3] | 272 | [2],[3] | ' | ' | ||
Other | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Total current assets | 4,112 | [2],[3] | 2,682 | [2],[3] | ' | ' | ||
Net property, plant and equipment | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Goodwill | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Customer relationships, net | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Other intangible assets, net | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Investments in subsidiaries | 12,781 | [2],[3] | 13,478 | [2],[3] | ' | ' | ||
Deferred income taxes, net | 473 | [2],[3] | 931 | [2],[3] | ' | ' | ||
Prepaid pension, post-retirement and other post-employment benefits-affiliate | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Other | 7 | [2],[3] | 7 | [2],[3] | ' | ' | ||
TOTAL ASSETS | 17,373 | [2],[3] | 17,098 | [2],[3] | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||||
Current maturities of long-term debt | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Notes payable-affiliates | 1,413 | [2],[3] | 1,413 | [2],[3] | ' | ' | ||
Accounts payable | 0 | [2],[3] | 1 | [2],[3] | ' | ' | ||
Accounts payable - affiliates | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Accrued expenses and other liabilities | 14 | [2],[3] | 57 | [2],[3] | ' | ' | ||
Advance billings and customers deposits | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Total current liabilities | 1,427 | [2],[3] | 1,471 | [2],[3] | ' | ' | ||
LONG-TERM DEBT | 1,007 | [2],[3] | 1,008 | [2],[3] | ' | ' | ||
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' | ' | ' | ||||
Deferred revenues | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Benefit plan obligations, net | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Pension, post-retirement and other post-employment benefits obligations and other - affiliates | 290 | [2],[3] | 270 | [2],[3] | ' | ' | ||
Deferred income taxes | 0 | [2],[3] | 0 | [2],[3] | ' | ' | ||
Other | 30 | [2],[3] | 27 | [2],[3] | ' | ' | ||
Total deferred credits and other liabilities | 320 | [2],[3] | 297 | [2],[3] | ' | ' | ||
Stockholder's equity | 14,619 | [2],[3] | 14,322 | [2],[3] | ' | ' | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 17,373 | [2],[3] | 17,098 | [2],[3] | ' | ' | ||
Subsidiaries Non-Guarantors | ' | ' | ' | ' | ||||
CURRENT ASSETS | ' | ' | ' | ' | ||||
Cash and cash equivalents | 30 | 17 | 16 | 8 | ||||
Accounts receivable, less allowance | 1,189 | 1,167 | ' | ' | ||||
Notes receivable - affiliates | 0 | 0 | ' | ' | ||||
Advances to affiliates | 0 | 223 | ' | ' | ||||
Deferred income taxes, net | 148 | 201 | ' | ' | ||||
Other | 369 | 321 | ' | ' | ||||
Total current assets | 1,736 | 1,929 | ' | ' | ||||
Net property, plant and equipment | 9,205 | 9,127 | ' | ' | ||||
Goodwill | 10,123 | 10,123 | ' | ' | ||||
Customer relationships, net | 5,132 | 5,822 | ' | ' | ||||
Other intangible assets, net | 1,063 | 1,213 | ' | ' | ||||
Investments in subsidiaries | 0 | 0 | ' | ' | ||||
Deferred income taxes, net | 0 | 0 | ' | ' | ||||
Prepaid pension, post-retirement and other post-employment benefits-affiliate | 0 | 0 | ' | ' | ||||
Other | 321 | 292 | ' | ' | ||||
TOTAL ASSETS | 27,580 | 28,506 | ' | ' | ||||
CURRENT LIABILITIES | ' | ' | ' | ' | ||||
Current maturities of long-term debt | 98 | 856 | ' | ' | ||||
Notes payable-affiliates | 741 | 701 | ' | ' | ||||
Accounts payable | 679 | 695 | ' | ' | ||||
Accounts payable - affiliates | 161 | 0 | ' | ' | ||||
Accrued expenses and other liabilities | 745 | 689 | ' | ' | ||||
Advance billings and customers deposits | 463 | 452 | ' | ' | ||||
Total current liabilities | 2,887 | 3,393 | ' | ' | ||||
LONG-TERM DEBT | 7,606 | 6,915 | ' | ' | ||||
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' | ' | ' | ||||
Deferred revenues | 209 | 192 | ' | ' | ||||
Benefit plan obligations, net | 0 | 0 | ' | ' | ||||
Pension, post-retirement and other post-employment benefits obligations and other - affiliates | 1,280 | 1,423 | ' | ' | ||||
Deferred income taxes | 2,510 | 2,761 | ' | ' | ||||
Other | 307 | 344 | ' | ' | ||||
Total deferred credits and other liabilities | 4,306 | 4,720 | ' | ' | ||||
Stockholder's equity | 12,781 | 13,478 | ' | ' | ||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 27,580 | 28,506 | ' | ' | ||||
Eliminations | ' | ' | ' | ' | ||||
CURRENT ASSETS | ' | ' | ' | ' | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||
Accounts receivable, less allowance | 0 | 0 | ' | ' | ||||
Notes receivable - affiliates | -1,413 | -1,413 | ' | ' | ||||
Advances to affiliates | -161 | -661 | ' | ' | ||||
Deferred income taxes, net | 0 | 0 | ' | ' | ||||
Other | 0 | -9 | ' | ' | ||||
Total current assets | -1,574 | -2,083 | ' | ' | ||||
Net property, plant and equipment | 0 | 0 | ' | ' | ||||
Goodwill | 0 | 0 | ' | ' | ||||
Customer relationships, net | 0 | 0 | ' | ' | ||||
Other intangible assets, net | 0 | 0 | ' | ' | ||||
Investments in subsidiaries | -27,400 | -27,800 | ' | ' | ||||
Deferred income taxes, net | -1,804 | -2,267 | ' | ' | ||||
Prepaid pension, post-retirement and other post-employment benefits-affiliate | -1,570 | -1,693 | ' | ' | ||||
Other | 0 | 0 | ' | ' | ||||
TOTAL ASSETS | -32,348 | -33,843 | ' | ' | ||||
CURRENT LIABILITIES | ' | ' | ' | ' | ||||
Current maturities of long-term debt | 0 | 0 | ' | ' | ||||
Notes payable-affiliates | -1,413 | -1,413 | ' | ' | ||||
Accounts payable | 0 | -9 | ' | ' | ||||
Accounts payable - affiliates | -161 | -661 | ' | ' | ||||
Accrued expenses and other liabilities | 0 | 0 | ' | ' | ||||
Advance billings and customers deposits | 0 | 0 | ' | ' | ||||
Total current liabilities | -1,574 | -2,083 | ' | ' | ||||
LONG-TERM DEBT | 0 | 0 | ' | ' | ||||
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' | ' | ' | ||||
Deferred revenues | 0 | 0 | ' | ' | ||||
Benefit plan obligations, net | 0 | 0 | ' | ' | ||||
Pension, post-retirement and other post-employment benefits obligations and other - affiliates | -1,570 | -1,693 | ' | ' | ||||
Deferred income taxes | -1,804 | -2,267 | ' | ' | ||||
Other | 0 | 0 | ' | ' | ||||
Total deferred credits and other liabilities | -3,374 | -3,960 | ' | ' | ||||
Stockholder's equity | -27,400 | -27,800 | ' | ' | ||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | ($32,348) | ($33,843) | ' | ' | ||||
[1] | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||||||
[2] | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||||||
[3] | QSC is a guarantor of the QCII Guaranteed Notes. |
Financial_Statements_of_Guaran5
Financial Statements of Guarantors (Details 4) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Financial Statements of Guarantors | ' | ' | ||
Net cash provided by (used in) operating activities | $2,425 | $2,017 | ||
INVESTING ACTIVITIES | ' | ' | ||
Payments for property, plant and equipment and capitalized software | -1,266 | -1,121 | ||
Changes in advances to affiliates | -1,707 | -28 | ||
Changes in advances to affiliates—notes | ' | 28 | ||
Changes in advances to affiliates—accounts | ' | 0 | ||
Dividends paid to parent | 0 | -750 | ||
Proceeds from Sale of Productive Assets | 0 | 133 | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||
Net cash used in investing activities | -2,973 | -1,016 | ||
FINANCING ACTIVITIES | ' | ' | ||
Net proceeds from issuance of long-term debt | 752 | 896 | ||
Payments of long-term debt | -835 | -2,761 | ||
Early retirement of debt costs | 0 | -178 | ||
Changes in notes payable-affiliates | 676 | 1,985 | ||
Changes in advances from affiliates | -20 | -187 | ||
Net cash provided by (used in) financing activities | 573 | -995 | ||
Net (decrease) increase in cash and cash equivalents | 25 | 6 | ||
Cash and cash equivalents at beginning of period | 87 | 48 | ||
Cash and cash equivalents at end of period | 112 | 54 | ||
QCII | ' | ' | ||
Financial Statements of Guarantors | ' | ' | ||
Net cash provided by (used in) operating activities | -106 | [1] | -479 | [1] |
INVESTING ACTIVITIES | ' | ' | ||
Payments for property, plant and equipment and capitalized software | 0 | [1] | 0 | [1] |
Changes in advances to affiliates | -188 | [1] | ' | |
Changes in advances to affiliates—notes | ' | -184 | [1] | |
Changes in advances to affiliates—accounts | ' | 0 | [1] | |
Dividends paid to parent | 0 | [1] | -750 | [1] |
Proceeds from Sale of Productive Assets | ' | 0 | [1] | |
Payments for (Proceeds from) Other Investing Activities | 300 | [1] | 750 | [1] |
Net cash used in investing activities | 112 | [1] | 934 | [1] |
FINANCING ACTIVITIES | ' | ' | ||
Net proceeds from issuance of long-term debt | 0 | [1] | 0 | [1] |
Payments of long-term debt | 0 | [1] | -1,302 | [1] |
Early retirement of debt costs | ' | -49 | [1] | |
Changes in notes payable-affiliates | 636 | [1] | 1,178 | [1] |
Changes in advances from affiliates | -651 | [1] | 468 | [1] |
Net cash provided by (used in) financing activities | -15 | [1] | -455 | [1] |
Net (decrease) increase in cash and cash equivalents | -9 | [1] | 0 | [1] |
Cash and cash equivalents at beginning of period | 11 | [1] | 0 | [1] |
Cash and cash equivalents at end of period | 2 | [1] | 0 | [1] |
QSC and QCF | ' | ' | ||
Financial Statements of Guarantors | ' | ' | ||
Net cash provided by (used in) operating activities | 643 | [2],[3] | 502 | [2],[3] |
INVESTING ACTIVITIES | ' | ' | ||
Payments for property, plant and equipment and capitalized software | 0 | [2],[3] | 0 | [2],[3] |
Changes in advances to affiliates | -1,242 | [2],[3] | ' | |
Changes in advances to affiliates—notes | ' | -280 | [2],[3] | |
Changes in advances to affiliates—accounts | ' | -734 | [2],[3] | |
Dividends paid to parent | 300 | [2],[3] | -750 | [2],[3] |
Proceeds from Sale of Productive Assets | ' | 0 | [2],[3] | |
Payments for (Proceeds from) Other Investing Activities | 950 | [2],[3] | 700 | [2],[3] |
Net cash used in investing activities | -292 | [2],[3] | 246 | [2],[3] |
FINANCING ACTIVITIES | ' | ' | ||
Net proceeds from issuance of long-term debt | 0 | [2],[3] | 0 | [2],[3] |
Payments of long-term debt | 0 | [2],[3] | 0 | [2],[3] |
Early retirement of debt costs | ' | 0 | [2],[3] | |
Changes in notes payable-affiliates | 0 | [2],[3] | 0 | [2],[3] |
Changes in advances from affiliates | -30 | [2],[3] | 0 | [2],[3] |
Net cash provided by (used in) financing activities | -330 | [2],[3] | -750 | [2],[3] |
Net (decrease) increase in cash and cash equivalents | 21 | [2],[3] | -2 | [2],[3] |
Cash and cash equivalents at beginning of period | 59 | [2],[3] | 40 | [2],[3] |
Cash and cash equivalents at end of period | 80 | [2],[3] | 38 | [2],[3] |
Subsidiaries Non-Guarantors | ' | ' | ||
Financial Statements of Guarantors | ' | ' | ||
Net cash provided by (used in) operating activities | 1,888 | 2,007 | ||
INVESTING ACTIVITIES | ' | ' | ||
Payments for property, plant and equipment and capitalized software | -1,266 | -1,121 | ||
Changes in advances to affiliates | 223 | ' | ||
Changes in advances to affiliates—notes | ' | -278 | ||
Changes in advances to affiliates—accounts | ' | -1,061 | ||
Dividends paid to parent | 950 | -700 | ||
Proceeds from Sale of Productive Assets | ' | 133 | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||
Net cash used in investing activities | -1,043 | -1,771 | ||
FINANCING ACTIVITIES | ' | ' | ||
Net proceeds from issuance of long-term debt | 752 | 896 | ||
Payments of long-term debt | -835 | -1,459 | ||
Early retirement of debt costs | ' | -129 | ||
Changes in notes payable-affiliates | 40 | 685 | ||
Changes in advances from affiliates | 161 | 479 | ||
Net cash provided by (used in) financing activities | -832 | -228 | ||
Net (decrease) increase in cash and cash equivalents | 13 | 8 | ||
Cash and cash equivalents at beginning of period | 17 | 8 | ||
Cash and cash equivalents at end of period | 30 | 16 | ||
Eliminations | ' | ' | ||
Financial Statements of Guarantors | ' | ' | ||
Net cash provided by (used in) operating activities | 0 | -13 | ||
INVESTING ACTIVITIES | ' | ' | ||
Payments for property, plant and equipment and capitalized software | 0 | 0 | ||
Changes in advances to affiliates | -500 | ' | ||
Changes in advances to affiliates—notes | ' | 770 | ||
Changes in advances to affiliates—accounts | ' | 1,795 | ||
Dividends paid to parent | -1,250 | 1,450 | ||
Proceeds from Sale of Productive Assets | ' | 0 | ||
Payments for (Proceeds from) Other Investing Activities | -1,250 | -1,450 | ||
Net cash used in investing activities | -1,750 | -425 | ||
FINANCING ACTIVITIES | ' | ' | ||
Net proceeds from issuance of long-term debt | 0 | 0 | ||
Payments of long-term debt | 0 | 0 | ||
Early retirement of debt costs | ' | 0 | ||
Changes in notes payable-affiliates | 0 | 122 | ||
Changes in advances from affiliates | 500 | -1,134 | ||
Net cash provided by (used in) financing activities | 1,750 | 438 | ||
Net (decrease) increase in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | $0 | $0 | ||
[1] | QCII is the issuer of the QCII Guaranteed Notes and is a guarantor of the QCF Guaranteed Notes. | |||
[2] | QCF is the issuer of the QCF Guaranteed Notes and is a guarantor of the QCII Guaranteed Notes. | |||
[3] | QSC is a guarantor of the QCII Guaranteed Notes. |