2.2.0.25falsefalse10201 - Disclosure - Events Associated with the CenturyLink Acquisitiontruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $Duration_1_1_2011_To_3_31_2011http://www.sec.gov/CIK0001037949duration2011-01-01T00:00:002011-03-31T00:00:00Unit12Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit1Standardhttp://www.xbrl.org/2003/instancesharesxbrli0Unit15Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit14Standardhttp://www.xbrl.org/2003/instancepurexbrli0USDUSD$2true0us-gaap_BusinessAcquisitionEntityAcquiredAndReasonForAcquisitionAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseEvents Associated with the CenturyLink Acquisition3false0us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div> (2) Events Associated with the CenturyLink Acquisition On April 1, 2011, we became a wholly owned subsidiary of CenturyLink in a tax-free, stock-for-stock transaction. The combined company's increased scale and financial strength will enable it to deliver a broader range of communications services to customers. As a result of the acquisition, each share of Qwest stock outstanding at March 31, 2011 was converted into 0.1664 shares of CenturyLink common stock, with cash paid in lieu of fractional shares. The estimated aggregate consideration is approximately $12.282 billion based on:   <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td valign="top" width="3%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> the number of CenturyLink common stock issued to consummate the acquisition of 294 million; </td></tr></table> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td valign="top" width="3%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> the closing stock price of CenturyLink common stock as of March 31, 2011 of $41.55; </td></tr></table> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td valign="top" width="3%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> the estimated pre-combination portion of share-based compensation awards assumed by CenturyLink of $61 million; and </td></tr></table> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td valign="top" width="3%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> cash paid in lieu of the issuance of fractional shares of $5 million. </td></tr></table> The premium paid in this transaction is attributable to strategic benefits, including enhanced financial and operational scale, market diversification and leveraged combined networks that we expect CenturyLink and its consolidated subsidiaries, including us, to realize. Our results of operations will be included in the consolidated results of operations of CenturyLink beginning April 1, 2011. CenturyLink will account for its acquisition of us under the acquisition method of accounting, which will result in the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition, with the excess purchase price being recognized as goodwill. None of the goodwill associated with this transaction is deductible for income tax purposes. The allocation of the purchase price to the assets acquired and liabilities assumed (and the related estimated lives of depreciable tangible and identifiable intangible assets) will require a significant amount of judgment. Such allocation of the purchase price (including the assignment of goodwill to reporting units) will be determined based upon analysis currently being performed, which is expected to be complete no later than April 1, 2012. The recognition of assets and liabilities at fair value will be reflected in our financial statements and therefore will result in a new basis of accounting for the "successor period" beginning on April 1, 2011. This new basis of accounting means that our financial statements for the successor periods will not be comparable to our previously reported financial statements, including the financial statements in this report. We expect cash and cash equivalents, auction rate securities, accounts receivable and accounts payable to equal their current carrying value. For additional information on the fair value of our long-term notes, including current portion, see Note 4 – Fair Value Disclosure.   The following is a preliminary allocation of the purchase price based on currently available information. The final identification of all the intangible assets acquired and the purchase price allocation may be significantly different than that reflected below (dollars in millions).   <table border="0" cellspacing="0" cellpadding="0" width="84%" align="center"> <tr><td width="75%"> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr bgcolor="#bcddf7"><td valign="top"> Current assets</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">$                1,994</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Net property, plant and equipment</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11,665</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#bcddf7"><td valign="top"> Identifiable intangible assets</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Customer relationship</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,200</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#bcddf7"><td valign="top"> Other</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">400</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Other non-current assets</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,240</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#bcddf7"><td valign="top"> Current liabilities, excluding the current portion of long-term debt</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,360)</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Current portion of long-term debt</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,422)</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#bcddf7"><td valign="top"> Long-term debt</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(10,242)</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Other long-term liabilities</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,830)</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#bcddf7"><td valign="top"> Goodwill</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12,637</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: #000000 1px solid;" valign="bottom"> </td> <td style="border-top: #000000 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Total merger consideration</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">$              12,282</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: #000000 3px double;" valign="bottom"> </td> <td style="border-top: #000000 3px double;" valign="bottom"> </td> <td> </td></tr></table> As of March 31, 2011, we had recognized $42 million of expenses associated with our activities surrounding the CenturyLink acquisition, including $3 million incurred during the three months ended March 31, 2011. We have not recognized certain other expenses that were contingent on completion of the acquisition, including $35 million for financial advisory fees and a yet to be determined amount of compensation expense comprised of retention bonuses, severance and share-based compensation for share-based awards that vested in connection with the acquisition. These contingent expenses will be disclosed in the notes to or included in our consolidated financial statements commencing in the second quarter of 2011 as part of goodwill. The final amounts of compensation associated with the CenturyLink acquisition is partially dependent upon personnel decisions that continue to be made as part of the continuing integration. These amounts may be material. CenturyLink has cash management arrangements between certain of its subsidiaries, including us, under which the majority of our cash balance is transferred on a daily basis to CenturyLink. </div>(2) Events Associated with the CenturyLink Acquisition On April 1, 2011, we became a wholly owned subsidiary of CenturyLink in a tax-free,falsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringSchedule of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This schedule does not include leveraged buyouts.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 68 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 52 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51 -Subparagraph a Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph F4 -Subparagraph e -Appendix F falsefalseEvents Associated with the CenturyLink Acquisition12Events Associated with the CenturyLink AcquisitionUnKnownUnKnownUnKnownUnKnownfalsetrue