Sale of Data Centers and Colocation Business (Tables)

9 Months Ended

Sep. 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 on May 1, 2017, including our most current estimates of the impact of failed-sale-leaseback:

	Dollars in millions
Goodwill	$	1,142
Property, plant and equipment	1,051
Other intangible assets	249
Other assets	66
Less assets recorded as part of the failed-sale-leaseback	(526		)
Total net amount of assets derecognized	$	1,982
Capital lease obligations	$	294
Other liabilities	274
Less imputed financing obligations from the failed-sale-leaseback	(628		)
Total net imputed liabilities recognized	$	(60	)

Sale-leaseback transactions

In addition, based on our most current estimates, the failed-sale-leaseback accounting treatment had the following effects on our consolidated results of operations for the three and nine months ended September 30, 2017, respectively:

	Positive (Negative) Impact to Net Income
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
	(Dollars in millions)
Increase in revenue	$	19		31
Decrease in cost of sales	6			9
Decrease (increase) in loss on sale of business included in selling, general and administrative expense	15			(102	)
Increase in depreciation expense (one-time)	—			(44	)
Increase in depreciation expense (ongoing)	(19		)	(29	)
Increase in interest expense	(17		)	(25	)
(Increase) decrease in income tax expense	(3		)	60
Increase (decrease) in net income	$	1		(100	)