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Long-Term Debt and Revolving Promissory Note | 12 Months Ended
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Dec. 31, 2015
Debt Disclosure [Abstract] |
Long-Term Debt and Revolving Promissory Note | Long-Term Debt and Revolving Promissory Note Long-term debt, including unamortized premiums and discounts, unamortized debt issuance costs and note payable-affiliate, were as follows:
|  |  |  |  | As of December 31,
| Interest Rates |  | Maturities |  | 2015 |  | 2014
|  |  |  |  | (Dollars in millions)
Senior notes | 6.125% - 8.375% |  | 2016 - 2055 |  | $ | 7,229 |  |  | 7,311 |
Term loan | 2.180% |  | 2025 |  | 100 |  |  | — |
Capital lease and other obligations | Various |  | Various |  | 17 |  |  | 32 |
Unamortized premiums, net |  |  |  |  | 16 |  |  | 36 |
Unamortized debt issuance costs |  |  |  |  | (123 | ) |  | (110 | )
Total long-term debt |  |  |  |  | 7,239 |  |  | 7,269 |
Less current maturities |  |  |  |  | (242 | ) |  | (117 | )
Long-term debt, excluding current maturities |  |  |  |  | $ | 6,997 |  |  | 7,152 |
Note payable-affiliate | 6.758% |  | 2022 |  | $ | 855 |  |  | 796 |
New Issuances 2015 On September 21, 2015, we issued $400 million aggregate principal amount of 6.625% Notes due 2055, in exchange for net proceeds, after deducting underwriting discounts and other expenses, of approximately $386 million. The underwriting agreement included an over-allotment option granting the underwriters for the offering an opportunity to purchase additional 6.625% Notes due 2055. On September 30, 2015, we issued an additional $10 million aggregate principal amount of the 6.625% Notes under this over-allotment option. All of the 6.625% Notes are unsecured obligations and may be redeemed by us, in whole or in part, on or after September 15, 2020, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date. 2014 On September 29, 2014, we issued $500 million aggregate principal amount of 6.875% Notes due 2054, in exchange for net proceeds, after deducting underwriting discounts and other expenses, of $483 million. The Notes are senior unsecured obligations and may be redeemed, in whole or in part, on or after October 1, 2019, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date. Repayments 2015 On October 13, 2015, we redeemed all $250 million of our 7.20% Notes due 2026, which resulted in an immaterial gain, and redeemed $150 million of our 6.875% Notes due 2033, which resulted in an immaterial loss. On June 15, 2015, we paid at maturity the $92 million principal amount of our 7.625% Notes. 2014 On October 1, 2014, we paid at maturity the $600 million principal amount of our 7.50% Notes. Term Loan On February 20, 2015, we entered into a term loan in the amount of $100 million with CoBank, ACB. The outstanding unpaid principal amount of this term loan plus any accrued and unpaid interest is due on February 20, 2025. Interest is paid monthly based upon either the London Interbank Offered Rate (“LIBOR”) or the base rate (as defined in the credit agreement) plus an applicable margin between 1.50% to 2.50% per annum for LIBOR loans and 0.50% to 1.50% per annum for base rate loans depending on our then current senior unsecured long-term debt rating. At December 31, 2015, the outstanding principal balance on this term loan was $100 million. Aggregate Maturities of Long-Term Debt Set forth below is the aggregate principal amount of our long-term debt (excluding unamortized premiums and discounts, net and unamortized debt issuance costs and other and excluding note payable-affiliate) maturing during the following years:
| (Dollars in millions)(1)
2016 | $ | 242 |
2017 | 503 |
2018 | 3 |
2019 | 1 |
2020 | — |
2021 and thereafter | 6,597 |
Total long-term debt | $ | 7,346 |
_______________________________________________________________________________ (1) Actual principal paid in all years may differ due to the possible future refinancing of outstanding debt or the issuance of new debt. Revolving Promissory Note We are currently indebted to an affiliate of our ultimate parent company, 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 $855 million was outstanding as of December 31, 2015. As of December 31, 2015, the weighted average interest rate was 6.758%. As of December 31, 2015 and 2014, this revolving promissory note is reflected on our consolidated balance sheets as a current liability under “Note payable-affiliate”. As of December 31, 2015, $5 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet. In accordance with the note agreement, all accrued and unpaid interest is capitalized to the unpaid principal balance on June 1 and December 1 of each year. Interest Expense Interest expense includes interest on long-term debt. The following table presents the amount of gross interest expense, net of capitalized interest and interest expense-affiliates, net:
| Years Ended December 31,
| 2015 |  | 2014 |  | 2013
| (Dollars in millions)
Interest expense: |  |  |  |  |
Gross interest expense | $ | 491 |  |  | 481 |  |  | 467 |
Capitalized interest | (18 | ) |  | (17 | ) |  | (17 | )
Total interest expense | $ | 473 |  |  | 464 |  |  | 450 |
Interest expense-affiliates, net | $ | 53 |  |  | 40 |  |  | 64 |
Covenants The indentures governing our notes contain certain covenants including, but not limited to: (i) a prohibition on certain liens on our assets; and (ii) a limitation on mergers or sales of all, or substantially all, of our assets, which limitation requires that a successor assume the obligation with regard to these notes. These indentures do not contain any cross-default provisions. Our senior notes were issued under indentures dated April 15, 1990 and October 15, 1999. These indentures restrict our ability to (i) incur, issue or create liens upon our property and (ii) consolidate with or merge into, or transfer or lease all or substantially all of our assets to any other party. At December 31, 2015, we believe we were in compliance with all of the provisions and covenants contained in our debt agreements. Subsequent Event In January 2016, we issued $235 million aggregate principal amount of 7% Notes due 2056, in exchange for net proceeds, after deducting underwriting discounts and other expenses, of approximately $227 million. All of the 7% Notes are unsecured obligations and may be redeemed by us, in whole or in part, on or after February 1, 2021, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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