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v3.22.2

Recently Completed Divestiture of the Latin American Business and Planned Divestiture of ILEC Businesses (Tables) | 6 Months Ended
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Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Components of Pre-Tax Income and Held for Sale Assets and Liabilities | The pre-tax net income of the disposal groups is estimated to be as follows in the tables below:
| Three Months Ended June 30,
| 2022 |  | 2021
| (Dollars in millions)
Latin American business pre-tax net income | $ | 95 |  |  | 47 |
ILEC business pre-tax net income | 168 |  |  | 149 |
Total disposal groups pre-tax net income | $ | 263 |  |  | 196 |
| Six Months Ended June 30,
| 2022 |  | 2021
| (Dollars in millions)
Latin American business pre-tax net income | $ | 178 |  |  | 75 |
ILEC business pre-tax net income | 412 |  |  | 294 |
Total disposal groups pre-tax net income | $ | 590 |  |  | 369 |
The principal components of the held for sale assets and liabilities as of the dates below are as follows:
| June 30, 2022 |  | December 31, 2021
| Latin American Business |  | ILEC Business |  | Total |  | Latin American Business |  | ILEC Business |  | Total
| (Dollars in millions)
Assets held for sale |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 48 |  |  | — |  |  | 48 |  |  | 39 |  |  | 1 |  |  | 40 |
Accounts receivable, less allowance of $2, $17, $19, $3, $21 and $24 | 94 |  |  | 197 |  |  | 291 |  |  | 83 |  |  | 227 |  |  | 310 |
Other current assets | 79 |  |  | 42 |  |  | 121 |  |  | 81 |  |  | 45 |  |  | 126 |
Property, plant and equipment, net accumulated depreciation of $431, $8,251, $8,682, $434, $8,303 and $8,737 | 1,714 |  |  | 3,582 |  |  | 5,296 |  |  | 1,591 |  |  | 3,491 |  |  | 5,082 |
Goodwill(1) | 246 |  |  | 2,581 |  |  | 2,827 |  |  | 239 |  |  | 2,615 |  |  | 2,854 |
Other intangible assets, net | 130 |  |  | 158 |  |  | 288 |  |  | 126 |  |  | 158 |  |  | 284 |
Other non-current assets | 80 |  |  | 45 |  |  | 125 |  |  | 75 |  |  | 38 |  |  | 113 |
Total assets held for sale | $ | 2,391 |  |  | 6,605 |  |  | 8,996 |  |  | 2,234 |  |  | 6,575 |  |  | 8,809 |
Liabilities held for sale |  |  |  |  |  |  |  |  |  |  |
Accounts payable | $ | 110 |  |  | 56 |  |  | 166 |  |  | 101 |  |  | 64 |  |  | 165 |
Salaries and benefits | 21 |  |  | 21 |  |  | 42 |  |  | 23 |  |  | 25 |  |  | 48 |
Income and other taxes | 37 |  |  | 29 |  |  | 66 |  |  | 27 |  |  | 24 |  |  | 51 |
Interest | — |  |  | 10 |  |  | 10 |  |  | — |  |  | 10 |  |  | 10 |
Current portion of deferred revenue | 27 |  |  | 81 |  |  | 108 |  |  | 26 |  |  | 90 |  |  | 116 |
Other current liabilities | 7 |  |  | 26 |  |  | 33 |  |  | 7 |  |  | 35 |  |  | 42 |
Long-term debt, net of discounts(2) | — |  |  | 1,395 |  |  | 1,395 |  |  | — |  |  | 1,377 |  |  | 1,377 |
Deferred income taxes, net | 149 |  |  | — |  |  | 149 |  |  | 129 |  |  | — |  |  | 129 |
Pension and other post-retirement benefits(3) | 3 |  |  | 56 |  |  | 59 |  |  | 2 |  |  | 56 |  |  | 58 |
Other non-current liabilities | 125 |  |  | 94 |  |  | 219 |  |  | 120 |  |  | 141 |  |  | 261 |
Total liabilities held for sale | $ | 479 |  |  | 1,768 |  |  | 2,247 |  |  | 435 |  |  | 1,822 |  |  | 2,257 |
______________________________________________________________________ (1)The assignment of goodwill was based on the relative fair values of the applicable reporting units prior to being reclassified as held for sale. (2)Long-term debt, net of discounts, as of June 30, 2022 and December 31, 2021 includes (i) $1.4 billion of 7.995% Embarq senior notes maturing in 2036, (ii) $115 million and $117 million of related unamortized discounts, respectively, and (iii) $73 million and $57 million of long-term finance lease obligations, respectively. (3)Excludes pension obligation of approximately $2.5 billion for the ILEC business as of both June 30, 2022 and December 31, 2021, which will be transferred to the purchaser of the ILEC business upon closing. As of January 1, 2022, a new pension plan (the "Lumen Pension Plan") was spun off in anticipation of this transfer. Along with the transfer of the $2.5 billion pension benefit obligation, $2.2 billion of assets were allocated to the new plan. The remaining portion of the obligation is expected to be separately funded with cash paid by Lumen at the time of closing. See Note 8—Employee Benefits for additional information.

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