Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 14-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'QWEST CORP | ' |
Entity Central Index Key | '0000068622 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Current Reporting Status | 'Yes | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 1 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING REVENUES | ' | ' |
Operating revenues | $1,690 | $1,723 |
Operating revenues-affiliates | 521 | 436 |
Total operating revenues | 2,211 | 2,159 |
OPERATING EXPENSES | ' | ' |
Cost of services and products (exclusive of depreciation and amortization) | 698 | 645 |
Selling, general and administrative | 285 | 269 |
Operating expenses-affiliates | 188 | 162 |
Depreciation and amortization | 498 | 530 |
Total operating expenses | 1,669 | 1,606 |
OPERATING INCOME | 542 | 553 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest expense | -116 | -108 |
Interest expense-affiliate | -13 | -16 |
Other income | 0 | 1 |
Total other income (expense) | -129 | -123 |
INCOME BEFORE INCOME TAX EXPENSE | 413 | 430 |
Income tax expense | 160 | 166 |
NET INCOME | $253 | $264 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $9 | $14 |
Accounts receivable, less allowance of $39 and $43 | 688 | 738 |
Advances to affiliates | 993 | 712 |
Deferred income taxes, net | 159 | 161 |
Other | 153 | 126 |
Total current assets | 2,002 | 1,751 |
NET PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Property, plant and equipment | 10,394 | 10,193 |
Accumulated depreciation | -3,254 | -2,985 |
Net property, plant and equipment | 7,140 | 7,208 |
GOODWILL AND OTHER ASSETS | ' | ' |
Goodwill | 9,354 | 9,354 |
Customer relationships, less accumulated amortization of $2,179 and $2,012 | 3,520 | 3,687 |
Other intangible assets, less accumulated amortization of $1,043 and $994 | 961 | 1,008 |
Other | 207 | 210 |
Total goodwill and other assets | 14,042 | 14,259 |
TOTAL ASSETS | 23,184 | 23,218 |
CURRENT LIABILITIES | ' | ' |
Current maturities of long-term debt | 635 | 637 |
Accounts payable | 506 | 440 |
Note payable-affiliate | 754 | 754 |
Accrued expenses and other liabilities | ' | ' |
Salaries and benefits | 198 | 217 |
Income and other taxes | 246 | 206 |
Other | 180 | 126 |
Advance billings and customer deposits | 323 | 320 |
Total current liabilities | 2,842 | 2,700 |
LONG-TERM DEBT | 6,898 | 6,921 |
DEFERRED CREDITS AND OTHER LIABILITIES | ' | ' |
Deferred revenue | 159 | 161 |
Deferred income taxes, net | 2,384 | 2,473 |
Affiliates obligations, net | 1,250 | 1,263 |
Other | 85 | 87 |
Total deferred credits and other liabilities | 3,878 | 3,984 |
COMMITMENTS AND CONTINGENCIES (Note 5) | ' | ' |
STOCKHOLDER'S EQUITY | ' | ' |
Common stock - one share without par value, owned by Qwest Services Corporation | 10,050 | 10,050 |
Accumulated deficit | -484 | -437 |
Total stockholder's equity | 9,566 | 9,613 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $23,184 | $23,218 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance (dollars) | $39 | $43 |
Customer relationships, accumulated amortization | 2,179 | 2,012 |
Other intangible assets, accumulated amortization | $1,043 | $994 |
Common stock, share outstanding (in shares) | 1 | 1 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $253 | $264 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 498 | 530 |
Deferred income taxes | -87 | -49 |
Provision for uncollectible accounts | 11 | 13 |
Long-term debt premium amortization | -11 | -15 |
Changes in current assets and current liabilities: | ' | ' |
Accounts receivable | 39 | -29 |
Accounts payable | 64 | 49 |
Accrued income and other taxes | 40 | 34 |
Other current assets and other current liabilities, net | 8 | -1 |
Other current assets and other current liabilities - affiliate | -13 | 0 |
Changes in other noncurrent assets and liabilities, net | -1 | -7 |
Changes in affiliates obligations, net | -13 | -41 |
Other, net | 2 | 2 |
Net cash provided by operating activities | 816 | 750 |
INVESTING ACTIVITIES | ' | ' |
Payments for property, plant and equipment and capitalized software | -226 | -262 |
Changes in advances to affiliates | -281 | -177 |
Net cash used in investing activities | -507 | -439 |
FINANCING ACTIVITIES | ' | ' |
Payments of long-term debt | -14 | -24 |
Dividends paid to Qwest Services Corporation | -300 | -300 |
Changes in note payable-affiliate | 0 | 16 |
Net cash used in financing activities | -314 | -308 |
Net (decrease) increase in cash and cash equivalents | -5 | 3 |
Cash and cash equivalents at beginning of period | 14 | 8 |
Cash and cash equivalents at end of period | 9 | 11 |
Supplemental cash flow information: | ' | ' |
Income taxes (paid), net | -248 | -215 |
Interest (paid) (net of capitalized interest of $4 and $4) | ($92) | ($87) |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Interest (paid), capitalized interest | $4 | $4 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (USD $) | Total | COMMON STOCK | ACCUMULATED DEFICIT |
In Millions, unless otherwise specified | |||
Balance at beginning of period at Dec. 31, 2012 | ' | $10,050 | ($76) |
Net income | 264 | ' | 264 |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' |
Dividends declared to Qwest Services Corporation | ' | ' | -300 |
Balance at end of period at Mar. 31, 2013 | 9,938 | 10,050 | -112 |
Balance at beginning of period at Dec. 31, 2013 | 9,613 | 10,050 | -437 |
Net income | 253 | ' | 253 |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' |
Dividends declared to Qwest Services Corporation | ' | ' | -300 |
Balance at end of period at Mar. 31, 2014 | $9,566 | $10,050 | ($484) |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
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, broadband, private line (including special access), network access, Ethernet, information technology, wireless and video services. In certain local and regional markets, we also provide local access and fiber transport services to competitive local exchange carriers. | |
We generate the majority of our revenues from services provided in the 14-state region of Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming. We refer to this region as our local service area. | |
Our consolidated balance sheet as of December 31, 2013, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission ("SEC"); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. We believe that these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations for the first three months of the year are not necessarily indicative of the consolidated results of operations that might be expected for the entire year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
The accompanying consolidated financial statements include our accounts and the accounts of our subsidiaries over which we exercise control. All intercompany amounts and transactions with our consolidated subsidiaries have been eliminated. | |
Effective January 2014, we changed the estimates of the remaining economic lives of certain switch and circuit network equipment. These changes resulted in a net increase in depreciation expense of approximately $5 million during the first quarter of 2014 and are expected to result in a net increase in depreciation expense of approximately $20 million for the year ending December 31, 2014. This net increase in depreciation expense, net of tax, reduced consolidated net income by approximately $3 million for the three months ended March 31, 2014 and is expected to reduce consolidated net income by approximately $12 million for the year ending December 31, 2014. |
LongTerm_Debt_and_Revolving_Pr
Long-Term Debt and Revolving Promissory Note | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Long-Term Debt and Revolving Promissory Note | ' | ||||||||||
Long-Term Debt and Revolving Promissory Note | |||||||||||
As of the following dates indicated, our long-term debt, including unamortized discounts and premiums and note payable-affiliate, was as follows: | |||||||||||
Interest Rates | Maturities | March 31, | 31-Dec-13 | ||||||||
2014 | |||||||||||
(Dollars in millions) | |||||||||||
Senior notes | 6.125% - 8.375% | 2014 - 2053 | $ | 7,411 | 7,411 | ||||||
Capital lease and other obligations | Various | Various | 58 | 72 | |||||||
Unamortized premiums (discounts), net | 64 | 75 | |||||||||
Total long-term debt | 7,533 | 7,558 | |||||||||
Less current maturities | (635 | ) | (637 | ) | |||||||
Long-term debt, excluding current maturities | $ | 6,898 | 6,921 | ||||||||
Note payable-affiliate | 6.62% | 2022 | $ | 754 | 754 | ||||||
Revolving Promissory Note | |||||||||||
We are currently indebted to an affiliate of our ultimate parent company, CenturyLink, Inc. ("CenturyLink"), under a revolving promissory note that provides us with a funding commitment of up to $1.0 billion aggregate principal amount through June 30, 2022, of which $754 million was outstanding as of March 31, 2014. For the three months ended March 31, 2014, the weighted average interest rate was 6.619%. As of March 31, 2014 and 2013, this revolving promissory note is reflected on our consolidated balance sheets as a current liability under note payable-affiliate. As of March 31, 2014, $13 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet. | |||||||||||
Covenants | |||||||||||
As of March 31, 2014, we believe we were in compliance with the provisions and covenants of our debt agreements. |
Fair_Value_Disclosure
Fair Value Disclosure | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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, note payable-affiliate and long-term debt, excluding capital lease obligations. Due to their short-term nature, the carrying amounts of our cash and cash equivalents, accounts receivable, advances to affiliates, accounts payable, and note payable-affiliate approximate their fair values. | |||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent and knowledgeable parties who are willing and able to transact for an asset or liability at the measurement date. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs when determining fair value and then we rank the estimated values based on the reliability of the inputs used following the fair value hierarchy set forth by the 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 as of the following dates: | |||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||
Input | Carrying | Fair | Carrying | Fair | |||||||||||
Level | Amount | Value | Amount | Value | |||||||||||
(Dollars in millions) | |||||||||||||||
Liabilities-Long-term debt, excluding capital lease obligations | 2 | $ | 7,475 | 7,656 | 7,486 | 7,226 | |||||||||
Products_and_Services_Revenues
Products and Services Revenues | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
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, broadband, private line (including special access), network access, Ethernet, information technology, wireless and video services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services. We categorize our products and services related to revenues into the following three categories: | |||||||
• | Strategic services, which include primarily broadband, private line (including special access), Ethernet, video (including resold satellite video services) and Verizon Wireless services; | ||||||
• | Legacy services, which include primarily local, Integrated Services Digital Network ("ISDN") (which uses regular telephone lines to support voice, video and data applications), switched access and traditional wide area network ("WAN") services (which allows a local communications network to link to networks in remote locations); and | ||||||
• | Affiliates and other services, which consist primarily of Universal Service Fund ("USF") revenues and surcharges and services we provide to our non-consolidated affiliates. We provide to our affiliates telecommunication services that we also provide to external customers. In addition, we provide to our affiliates computer system development and support services, network support and technical services. | ||||||
Our operating revenues for our products and services consisted of the following revenue categorization for the three months ended March 31, 2014 and 2013: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
(Dollars in millions) | |||||||
Strategic services | $ | 856 | 829 | ||||
Legacy services | 767 | 825 | |||||
Affiliates and other services | 588 | 505 | |||||
Total operating revenues | $ | 2,211 | 2,159 | ||||
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. | |||||||
USF surcharges and transaction taxes included in billings to our customers are reflected on a gross basis in our statements of operations (included in both operating revenues and expenses) and aggregated approximately $39 million and $40 million for the three months ended March 31, 2014 and 2013, respectively. The USF surcharges are included in affiliates and other services and transaction taxes are included in legacy revenues. | |||||||
Our operations are integrated into and reported as part of the consolidated segment data of CenturyLink. CenturyLink's chief operating decision maker ("CODM") is our CODM, but reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the Securities and Exchange Commission. Consequently, we do not provide our discrete financial information to the CODM on a regular basis. As such, we believe we have one reportable segment. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
From time to time, we are involved in other proceedings incidental to our business, including patent infringement allegations, administrative hearings of state public utility commissions relating primarily to 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 any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows. | |
We are currently defending several patent infringement lawsuits asserted against us by non-practicing entities. These cases have progressed to various stages and one or more may go to trial in the coming 24 months if they are not otherwise resolved. Where applicable, we are seeking full or partial indemnification from our vendors and suppliers. As with all litigation, we are vigorously defending these actions and, as a matter of course, are prepared both to litigate the matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities. | |
We are aware of disputes and litigation within the industry, including disputes involving us, regarding the proper charges to be applied between interexchange and local exchange carriers for certain calls between mobile and wireline devices that are routed through an interexchange carrier. Some carriers are refusing to pay these access charges and some are seeking refunds of past charges paid. As a local exchange carrier, we assess the charges in question. The outcome of these disputes is currently not predictable. If we are required to stop assessing these charges or to pay refunds of any such charges, our financial results could be negatively affected. | |
CenturyLink and its affiliates are involved in several legal proceedings to which we are not a party that, if resolved against them, could have a material adverse effect on their business and financial condition. As an indirect wholly owned subsidiary of CenturyLink, our business and financial condition could be similarly affected. You can find descriptions of these legal proceedings in CenturyLink's quarterly and annual reports filed with the SEC. Because we are not a party to any of these matters, we have not accrued any liabilities for these matters. |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2014 | |
Dividends | ' |
Dividends | ' |
Dividends | |
During the three months ended March 31, 2014, we declared and paid dividends to our direct parent company, Qwest Services Corporation ("QSC"), of $300 million. Dividends paid are reflected on our consolidated statements of cash flows as financing activities. |
Other_Financial_Information
Other Financial Information | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Other Current Assets and Selected Current Liabilities [Abstract] | ' | ||||||
Other Financial Information | ' | ||||||
Other Financial Information | |||||||
Other Current Assets | |||||||
The following table presents details of our other current assets in our consolidated balance sheets as of the following dates: | |||||||
31-Mar-14 | 31-Dec-13 | ||||||
(Dollars in millions) | |||||||
Prepaid expenses | $ | 66 | 47 | ||||
Other | 87 | 79 | |||||
Total other current assets | $ | 153 | 126 | ||||
Selected Current Liabilities | |||||||
Current liabilities reflected in our consolidated balance sheets include accounts payable as of the following dates: | |||||||
31-Mar-14 | 31-Dec-13 | ||||||
(Dollars in millions) | |||||||
Accounts payable | $ | 506 | 440 | ||||
Included in accounts payable at March 31, 2014 and December 31, 2013 were $13 million and $11 million, respectively, associated with capital expenditures. |
LongTerm_Debt_and_Revolving_Pr1
Long-Term Debt and Revolving Promissory Note (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Schedule of long-term debt, including unamortized discounts and premiums | ' | ||||||||||
As of the following dates indicated, our long-term debt, including unamortized discounts and premiums and note payable-affiliate, was as follows: | |||||||||||
Interest Rates | Maturities | March 31, | 31-Dec-13 | ||||||||
2014 | |||||||||||
(Dollars in millions) | |||||||||||
Senior notes | 6.125% - 8.375% | 2014 - 2053 | $ | 7,411 | 7,411 | ||||||
Capital lease and other obligations | Various | Various | 58 | 72 | |||||||
Unamortized premiums (discounts), net | 64 | 75 | |||||||||
Total long-term debt | 7,533 | 7,558 | |||||||||
Less current maturities | (635 | ) | (637 | ) | |||||||
Long-term debt, excluding current maturities | $ | 6,898 | 6,921 | ||||||||
Note payable-affiliate | 6.62% | 2022 | $ | 754 | 754 | ||||||
Fair_Value_Disclosure_Tables
Fair Value Disclosure (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 long-term debt, excluding capital lease obligations, and input level to determine fair values | ' | ||||||||||||||
The following table presents the carrying amounts and estimated fair values of our long-term debt, excluding capital lease obligations, as well as the input level used to determine the fair values as of the following dates: | |||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||
Input | Carrying | Fair | Carrying | Fair | |||||||||||
Level | Amount | Value | Amount | Value | |||||||||||
(Dollars in millions) | |||||||||||||||
Liabilities-Long-term debt, excluding capital lease obligations | 2 | $ | 7,475 | 7,656 | 7,486 | 7,226 | |||||||||
Products_and_Services_Revenues1
Products and Services Revenues (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Segment Reporting [Abstract] | ' | ||||||
Schedule of operating revenues by products and services | ' | ||||||
Our operating revenues for our products and services consisted of the following revenue categorization for the three months ended March 31, 2014 and 2013: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
(Dollars in millions) | |||||||
Strategic services | $ | 856 | 829 | ||||
Legacy services | 767 | 825 | |||||
Affiliates and other services | 588 | 505 | |||||
Total operating revenues | $ | 2,211 | 2,159 | ||||
Other_Financial_Information_Ta
Other Financial Information (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Other Current Assets and Selected Current Liabilities [Abstract] | ' | ||||||
Schedule of other current assets reflected on the entity's balance sheet | ' | ||||||
The following table presents details of our other current assets in our consolidated balance sheets as of the following dates: | |||||||
31-Mar-14 | 31-Dec-13 | ||||||
(Dollars in millions) | |||||||
Prepaid expenses | $ | 66 | 47 | ||||
Other | 87 | 79 | |||||
Total other current assets | $ | 153 | 126 | ||||
Schedule of accounts payable | ' | ||||||
Current liabilities reflected in our consolidated balance sheets include accounts payable as of the following dates: | |||||||
31-Mar-14 | 31-Dec-13 | ||||||
(Dollars in millions) | |||||||
Accounts payable | $ | 506 | 440 | ||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 |
state | Change in Estimates of Economic Lives of Property, Plant and Equipment [Member] | Forecast | ||
Change in Estimates of Economic Lives of Property, Plant and Equipment [Member] | ||||
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' |
Number of states in which entity operates (states) | 14 | ' | ' | ' |
Depreciation | ' | ' | $5 | $20 |
Net Income | ($253) | ($264) | $3 | $12 |
LongTerm_Debt_and_Revolving_Pr2
Long-Term Debt and Revolving Promissory Note (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Long-term debt | ' | ' |
Unamortized premiums (discounts), net | $64,000,000 | $75,000,000 |
Total long-term debt | 7,533,000,000 | 7,558,000,000 |
Less current maturities | -635,000,000 | -637,000,000 |
Long-term debt, excluding current maturities | 6,898,000,000 | 6,921,000,000 |
Senior notes | ' | ' |
Long-term debt | ' | ' |
Long-term debt | 7,411,000,000 | 7,411,000,000 |
Senior notes | Minimum | ' | ' |
Long-term debt | ' | ' |
Interest rate (as a percent) | 6.13% | ' |
Senior notes | Maximum | ' | ' |
Long-term debt | ' | ' |
Interest rate (as a percent) | 8.38% | ' |
Capital lease and other obligations | ' | ' |
Long-term debt | ' | ' |
Long-term debt | 58,000,000 | 72,000,000 |
Revolving promissory note | CenturyLink, Inc. affiliate | ' | ' |
Long-term debt | ' | ' |
Maximum borrowing capacity | 1,000,000,000 | ' |
Weighted average interest rate (as a percent) | 6.62% | ' |
Note payable-affiliate | 754,000,000 | 754,000,000 |
Accrued interest payable on related party note payable | $13,000,000 | ' |
Fair_Value_Disclosure_Details
Fair Value Disclosure (Details) (Input Level 2, Fair Value, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Amount | ' | ' |
Liabilities | ' | ' |
Liabilities-Long-term debt, excluding capital lease obligations | $7,475 | $7,486 |
Fair Value | ' | ' |
Liabilities | ' | ' |
Liabilities-Long-term debt, excluding capital lease obligations | $7,656 | $7,226 |
Products_and_Services_Revenues2
Products and Services Revenues (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
segment | ||
category | ||
Products and Services Revenues | ' | ' |
Number of categories of products and services (categories) | 3 | ' |
Total operating revenues | $2,211 | $2,159 |
USF surcharges and transaction taxes included in operating revenues and expenses | 39 | 40 |
Number of reportable segments (segments) | 1 | ' |
Strategic services | ' | ' |
Products and Services Revenues | ' | ' |
Total operating revenues | 856 | 829 |
Legacy services | ' | ' |
Products and Services Revenues | ' | ' |
Total operating revenues | 767 | 825 |
Affiliates and other services | ' | ' |
Products and Services Revenues | ' | ' |
Total operating revenues | $588 | $505 |
Dividends_Details
Dividends (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Dividends | ' | ' |
Dividends paid to Qwest Services Corporation | $300 | $300 |
Other_Financial_Information_De
Other Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Other Current Assets | ' | ' |
Prepaid expenses | $66 | $47 |
Other | 87 | 79 |
Total other current assets | 153 | 126 |
Selected Current Liabilities | ' | ' |
Accounts payable | 506 | 440 |
Capital expenditures | $13 | $11 |