Sale of Data Centers and Colocation Business (Tables)

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of disposal assets held-for-sale and liabilities attributable to disposal assets held-for-sale

The following table reflects the assets sold to and the liabilities assumed by Cyxtera Technologies on May 1, 2017, including our preliminary estimates of the impact of failed-sale-leaseback:

	Dollars in millions
Goodwill	$	1,141
Property, plant and equipment	1,046
Other intangible assets	249
Other assets	62
Less assets recorded as part of the failed-sale-leaseback	(501		)
Total net amount of assets derecognized	$	1,997
Capital lease obligations	$	294
Other liabilities	273
Less imputed financing obligations from the failed-sale-leaseback	(648		)
Total net imputed liabilities recognized	$	(81	)

Sale-leaseback transactions

In addition, based on our preliminary estimates, the failed-sale-leaseback accounting treatment had the following effects on our consolidated results of operations for the three and six months ended June 30, 2017:

	Positive (Negative) Impact to Net Income
	Dollars in millions
Increase in revenue	$	12
Decrease in cost of sales	3
Increase in loss on sale of business included in selling, general and administrative expense	(117		)
Increase in depreciation expense (one-time)	(44		)
Increase in depreciation expense (ongoing)	(10		)
Increase in interest expense	(8		)
Decrease in income tax expense	63
Decrease in net income	$	(101	)