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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We were included in the consolidated federal income tax returns and the combined state income tax returns of QCII until CenturyLink's April 1, 2011 acquisition of QCII and the consolidated federal income tax returns and certain combined state income tax returns of CenturyLink subsequent to the acquisition. Both CenturyLink and QCII treat our consolidated results as if we were a separate taxpayer. The policy requires us to settle our tax liabilities through a change in our general intercompany obligation based upon our separate return taxable income, which is reflected in advances to affiliates on our consolidated balance sheets and the changes in advances to affiliates are reflected as investing activities on our consolidated statements of cash flows. Because we are included in the consolidated federal income tax returns and the combined state income tax returns of CenturyLink (and previously with QCII), any tax audits involving CenturyLink or QCII will also involve us. The IRS previously examined all of QCII's federal income tax returns prior to 2008 because they were included in its coordinated industry case program and now examines all of QCII's federal income tax returns as included in the consolidated federal return of the ultimate parent company, CenturyLink. In years prior to 2011, QCII filed amended federal income tax returns for 2002-2007 to make protective claims with respect to items reserved in our audit settlements and to correct items not addressed in prior audits. The examination of those amended federal income tax returns by the IRS was completed in 2012. In 2012, QCII filed an amended 2008 federal income tax return primarily to report the carryforward impact of prior year settlements and in 2013, QCII filed an amended return for 2009. Such amended filings are subject to adjustment by the IRS. CenturyLink also files combined income tax returns in many states, and these combined returns remain open for adjustments to its federal income tax returns. In addition, certain combined state income tax returns filed by CenturyLink and QCII since 1999 are still open for state specific adjustments. Effective on April 1, 2011 in conjunction with CenturyLink's indirect acquisition of us, we changed our accounting policy to recognize interest expense and penalties related to income taxes as income tax expense. Prior to April 1, 2011, interest expense and penalties related to income taxes were included in the other income (expense) line of our consolidated statements of operations. As of the successor date of December 31, 2013, we had no liability for interest related to uncertain tax positions. As of the successor date of December 31, 2012, we had a recorded liability for interest related to uncertain tax positions in the amounts of $5 million. We did not record a liability for interest related to uncertain tax positions for the successor year ended December 31, 2013. We made no accrual for penalties related to income tax positions. Income Tax Expense The components of the income tax expense from continuing operations are as follows:
| Successor |  |  | Predecessor
| Year Ended December 31, 2013 |  | Year Ended December 31, 2012 |  | Nine Months Ended December 31, 2011 |  |  | Three Months Ended March 31, 2011
| (Dollars in millions)
Income tax expense: |  |  |  |  |  |  |  |
Current tax provision: |  |  |  |  |  |  |  |
Federal and foreign | $ | 653 |  |  | 638 |  |  | 173 |  |  |  | 104 |
State and local | 101 |  |  | 105 |  |  | 26 |  |  |  | 11 |
Total current tax provision | 754 |  |  | 743 |  |  | 199 |  |  |  | 115 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |
Federal and foreign | (125 | ) |  | (175 | ) |  | 128 |  |  |  | 61 |
State and local | (27 | ) |  | (26 | ) |  | 22 |  |  |  | 15 |
Total deferred tax expense (benefit) | (152 | ) |  | (201 | ) |  | 150 |  |  |  | 76 |
Income tax expense | $ | 602 |  |  | 542 |  |  | 349 |  |  |  | 191 |
The effective income tax rate for continuing operations differs from the statutory tax rate as follows:
| Successor |  |  | Predecessor
| Year Ended December 31, 2013 |  | Year Ended December 31, 2012 |  | Nine Months Ended December 31, 2011 |  |  | Three Months Ended March 31, 2011
| (in percent)
Effective income tax rate: |  |  |  |  |  |  |  |
Federal statutory income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | % |  |  | 35.0 | %
State income taxes-net of federal effect | 3.1 |  |  | 3.7 |  |  | 3.5 |  |  |  | 3.4 |
Other | 0.3 |  |  | 0.3 |  |  | 0.6 |  |  |  | 0.6 |
Effective income tax rate | 38.4 | % |  | 39.0 | % |  | 39.1 | % |  |  | 39.0 | %
Deferred Tax Assets and Liabilities The components of the deferred tax assets and liabilities are as follows:
| Successor
| December 31, 2013 |  | December 31, 2012
| (Dollars in millions)
Deferred tax assets and liabilities: |  |  |
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | (1,281 | ) |  | (1,179 | )
Intangibles assets | (1,772 | ) |  | (2,118 | )
Receivable from an affiliate due to pension plan participation | (462 | ) |  | (397 | )
Other | (52 | ) |  | (61 | )
Total deferred tax liabilities | (3,567 | ) |  | (3,755 | )
Deferred tax assets: |  |  |
Payable to affiliate due to post-retirement benefit plan participation | 983 |  |  | 982 |
Debt premiums | 55 |  |  | 67 |
Other | 229 |  |  | 253 |
Total deferred tax assets | 1,267 |  |  | 1,302 |
Valuation allowance on deferred tax assets | (12 | ) |  | (12 | )
Net deferred tax assets | 1,255 |  |  | 1,290 |
Net deferred tax liabilities | $ | (2,312 | ) |  | (2,465 | )
At December 31, 2013, we have established a valuation allowance of $12 million as it is not more likely than not that this amount of deferred tax assets will be realized. Other Income Tax Information We paid $750 million, $607 million, and $211 million to QSC related to income taxes in the successor years ended December 31, 2013, 2012 and 2011, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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