Stockholder's Equity (Deficit)

12 Months Ended

Dec. 31, 2012

Stockholder's Equity (Deficit)

Stockholder's Equity (Deficit)

(14)   Stockholder's Equity (Deficit)

Common Stock

        On April 1, 2011, we became a wholly owned subsidiary of CenturyLink. Each outstanding share of our common stock immediately prior to the acquisition converted into the right to receive 0.1664 shares of CenturyLink common stock, with cash paid in lieu of fractional shares. We had 1.792 billion shares issued and 1.764 billion shares outstanding as of the predecessor date of December 31, 2010.

        As of the successor dates of December 31, 2012 and December 31, 2011, we had one thousand shares of common stock ($0.01 par value) issued and outstanding, which are owned by CenturyLink.

Treasury Stock

• Deferred Compensation—Rabbi Trusts

        Rabbi trusts were established for two of our four deferred compensation plans. As of the successor date of December 31, 2011, the rabbi trusts were dissolved and there was no treasury stock held in the rabbi trust. As of predecessor date of December 31, 2010, the rabbi trusts held approximately 22,000 shares of our common stock with a cost of approximately $1 million. Shares of our common stock held by the rabbi trusts were accounted for as treasury stock, but were considered outstanding for legal purposes.

• Forfeitures of Vested Restricted Stock and Performance Shares

        Under our predecessor period Equity Incentive Plan and equity award agreements, we automatically withheld a portion of vesting restricted stock and common stock underlying vesting performance shares to cover the withholding taxes due upon vesting. As a result of these withholdings, we acquired approximately 18,779,000 shares of treasury stock during the predecessor year of 2010.