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v3.22.2.2

Recently Completed Divestitures of the Latin American and ILEC Businesses (Tables) | 9 Months Ended
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Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Components of Pre-Tax Income and Assets and Liabilities as of the Disposal Date | The principal components of the held for sale assets and liabilities of the ILEC business as of the dates below are as follows:
| September 30, 2022 | December 31, 2021
| ILEC Business |  |
| (Dollars in millions)
Assets held for sale(1) |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | 1 |  |  |
Accounts receivable, less allowance of $19 and $21 | 195 |  |  | 227 |  |  |
Other current assets | 52 |  |  | 45 |  |  |
Property, plant and equipment, net accumulated depreciation of $8,170 and $8,303 | 3,651 |  |  | 3,491 |  |  |
Goodwill(2) | 2,581 |  |  | 2,615 |  |  |
Other intangible assets, net | 158 |  |  | 158 |  |  |
Other non-current assets | 38 |  |  | 38 |  |  |
Total assets held for sale | $ | 6,675 |  |  | 6,575 |  |  |
Liabilities held for sale(1) |  |  |  |  |
Accounts payable | $ | 56 |  |  | 64 |  |  |
Salaries and benefits | 32 |  |  | 25 |  |  |
Income and other taxes | 30 |  |  | 24 |  |  |
Interest | 38 |  |  | 10 |  |  |
Current portion of deferred revenue | 87 |  |  | 90 |  |  |
Other current liabilities | 47 |  |  | 35 |  |  |
Long-term debt, net of discounts(3) | 1,400 |  |  | 1,377 |  |  |
Pension and other post-retirement benefits(4) | 27 |  |  | 56 |  |  |
Other non-current liabilities | 71 |  |  | 141 |  |  |
Total liabilities held for sale | $ | 1,788 |  |  | 1,822 |  |  |
______________________________________________________________________ (1)As a result of the above-described sale of our Latin American business on August 1, 2022, this table excludes $2.2 billion of assets and $435 million of liabilities relating to the Latin American business. The net assets of the Latin American business were classified as held for sale on our accompanying balance sheet as of December 31, 2021. (2)The assignment of goodwill was based on the relative fair value of the applicable reporting units prior to being classified as held for sale. (3)Long-term debt, net of discounts, as of September 30, 2022 and December 31, 2021 includes (i) $1.4 billion aggregate principal amount of 7.995% Embarq senior notes maturing in 2036, (ii) $114 million and $117 million of related unamortized discounts, respectively, and (iii) $76 million and $57 million of long-term finance lease obligations, respectively. (4)Excludes pension obligation of approximately $2.5 billion for the ILEC business as of both September 30, 2022 and December 31, 2021, which we transferred to the purchaser of the ILEC business upon closing. As of January 1, 2022, we spun off a new pension plan (the "Lumen Pension Plan") in anticipation of this transfer. Along with the transfer of the $2.5 billion pension benefit obligation, we allocated $2.2 billion of assets to the new plan in January 2022 and contributed $319 million of additional cash to the new plan's trust in September 2022 to fully fund the pension plan. See Note 8—Employee Benefits for additional information. The pre-tax net income of the ILEC business is estimated to be as follows in the tables below:
| ILEC business pre-tax net income
| 2022 |  | 2021
| (Dollars in millions)
Three Months Ended September 30, | $ | 164 |  |  | 234 |
Nine Months Ended September 30, | $ | 576 |  |  | 528 |

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