XML 68 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Employee Benefits | 12 Months Ended
--- | ---
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract] |
Employee Benefits | Employee Benefits Pension and Post-Retirement Benefits We are required to disclose the amount of our contributions to CenturyLink and QCII relative to the QCII pension plans and CenturyLink post-retirement benefit plans. QCII's post-retirement benefit plans were merged into CenturyLink's post-retirement benefit plans on January 1, 2012. QCII was not required and did not make contributions to the pension plan trust in 2013. Based on current laws and circumstances, (i) QCII will not be required to make a cash contribution to this plan in 2014 and (ii) QCII does not expect it will be required to make a contribution in 2015. The amount of required contributions to the plan in 2015 and beyond will depend on earnings on plan investments, prevailing discount rates, demographic experience, changes in plan benefits and changes in funding laws and regulations. No contributions were made to the post-retirement occupational health care trust in 2013 or 2012 and CenturyLink does not expect to make a contribution in 2014. The unfunded status of QCII's qualified pension plan for accounting purposes was $159 million and $948 million as of the successor dates of December 31, 2013 and 2012, respectively. The unfunded status of CenturyLink's post-retirement benefit plans for accounting purposes was $3.153 billion and $3.448 billion as of the successor dates of December 31, 2013 and 2012, respectively. CenturyLink and QCII allocate income and expenses to us based upon the demographics of our employee and retirees compared to all the remaining participants. We were allocated $178 million and $117 million in pension income during the successor years ended December 31, 2013 and 2012 and $51 million for the successor nine months ended December 31, 2011, as well as $11 million in pension expense for the predecessor three months ended March 31, 2011. Our allocated post-retirement benefit expense for the successor years ended December 31, 2013 and 2012, the successor nine months ended December 31, 2011, and the predecessor three months ended March 31, 2011 was $88 million, $106 million, $84 million, $16 million, respectively. These allocated amounts represent our share of the pension and post-retirement benefit expenses based on the actuarially determined amounts. Our allocated portion of QCII's total pension and CenturyLink's post-retirement benefit income and expenses were 91%, 91%, 96%, and 102% for the successor years ended December 31, 2013 and 2012, the successor nine months ended December 31, 2011, and the predecessor three months ended March 31, 2011, respectively. CenturyLink and QCII allocate the income and expenses of these plans to us and their other affiliates. The allocation of income and expense to us is based upon demographics of our employees compared to all remaining participants. The combined net pension and post-retirement benefits (income) expenses is included in cost of services and products and selling, general and administrative expenses. QCII sponsors a noncontributory qualified defined benefit pension plan (referred to as QCII's pension plan) for substantially all of our employees. In addition to this tax qualified pension plan, QCII also maintains a non-qualified pension plan for certain eligible highly compensated employees. These plans also provide survivor and disability benefits to certain employees. In November 2009, QCII amended the pension plan and the non-qualified pension plans to no longer provide pension benefit accruals for active non-represented employees after December 31, 2009. In addition, non-represented employees hired after January 1, 2009 are not eligible to participate in the plans. Active non-represented employees who participate in these plans retain their accrued pension benefit earned as of December 31, 2009 and certain participants will continue to earn interest credits on their benefit after December 31, 2009. Employees are eligible to receive their vested accrued benefit when they separate from CenturyLink. The plans also provided a death benefit for eligible beneficiaries of certain retirees; however, QCII has eliminated this benefit effective March 1, 2010 for retirees who retired prior to January 1, 2004 and whose deaths occur after February 28, 2010. QCII previously eliminated the death benefit for eligible beneficiaries of certain retirees who retired after December 31, 2003. QCII maintains post-retirement benefit plans that provide health care and life insurance benefits for certain eligible retirees, which were merged into CenturyLink's post-retirement benefit plans on January 1, 2012. The benefit obligation for QCII's occupational health care and life insurance post-retirement plans is estimated based on the terms of QCII's written benefit plans. In calculating this obligation, QCII considers numerous assumptions, estimates and judgments, including but not limited to, discount rates, health care cost trend rates and plan amendments. In October 2013, we renewed a four-year collective bargaining agreement which covers approximately 12,000 of our unionized employees. Effective January 1, 2014, the approximately 12,000 active employees and eligible post-1990 retirees who are former represented employees, have changes to their health and welfare benefits including: (i) changes to align the coverage and benefits for these active employees and non-Medicare eligible post-1990 retirees with the health and welfare coverage and benefits offered to all other CenturyLink employees and other CenturyLink retirees (with some exceptions) (ii) increased out-of-pocket health care costs through plan design changes effective January 1, 2014 and the elimination of Class II dependent coverage and (iii) elimination of the group medical plan coverage and benefits for Medicare-eligible post-1990 retirees and the establishment of a health reimbursement account and assistance to this population with their transition effective May 1, 2014 to their own purchase of individual policies through the Medicare Exchange market place using the health reimbursement account. In order to maintain their eligibility, post-1990 retirees continue to be obligated to contribute to the cost of health care benefits in excess of specified limits on the company-funded portion of retiree health care costs (also referred to as the "caps"), as they have since January 1, 2009. The terms of the post-retirement health care and life insurance plans between QCII and its eligible non-represented employees and its eligible post-1990 non-represented retirees are established by QCII and are subject to change at its discretion. QCII has a practice of sharing some of the cost of providing health care benefits with its non-represented employees and post-1990 non-represented retirees. The benefit obligation for the non-represented post-retirement health care benefits is based on the terms of the current written plan documents and is adjusted for anticipated continued cost sharing with non-represented employees and post-1990 non-represented retirees. However, QCII's contribution under its post-1990 non-represented retirees' health care plan is capped at a specific dollar amount. Effective January 1, 2009, QCII amended its post-1990 non-represented retiree plan to, among other things, (i) require retirees to pay increased out-of-pocket costs and (ii) eliminate the reimbursement of Medicare Part B premiums. Medicare Prescription Drug, Improvement and Modernization Act of 2003 CenturyLink (formerly QCII) sponsors post-retirement health care plans with several benefit options that provide prescription drug benefits that CenturyLink deems actuarially equivalent to or exceeding Medicare Part D. CenturyLink recognizes the impact of the federal subsidy received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 in the calculation of its post-retirement benefit obligation and net periodic post-retirement benefit expense. Other Benefit Plans Health Care and Life Insurance We provide health care and life insurance benefits to essentially all of our active employees. We are largely self-funded for the cost of the health care plan. Our active health care benefit expenses were $223 million, $221 million, $167 million, and $57 million for the successor years ended December 31, 2013 and 2012, the successor nine months ended December 31, 2011 and the predecessor three months ended March 31, 2011, respectively. Represented employee benefits are based on negotiated collective bargaining agreements. Employees are required to partially fund the health care benefits provided by us, in addition to paying their own out-of-pocket costs. Our group life insurance plan is fully insured and the premiums are paid by us. 401(k) Plan CenturyLink sponsors a qualified defined contribution benefit plan covering substantially all of our employees. Under this plan, employees may contribute a percentage of their annual compensation to the plan up to certain maximums, as defined by the plan and by the Internal Revenue Service ("IRS"). Currently, we match a percentage of our employees' contributions in cash. We recognized $49 million, $46 million, $36 million, and $12 million in expense related to this plan for the successor years ended December 31, 2013 and 2012, the successor nine months ended December 31, 2011, and the predecessor three months ended March 31, 2011, respectively. Deferred Compensation Plans QCII sponsored a non-qualified unfunded deferred compensation plan for various groups that include certain of our current and former highly compensated employees. The plan is frozen and participants can no longer defer compensation to the plan. The value of the assets and liabilities related to this plan is not significant.

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration