Sale of Data Centers and Colocation Business (Tables)

12 Months Ended

Dec. 31, 2018

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 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 not removed as a result 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, the failed-sale-leaseback accounting treatment had the following effects on our consolidated results of operations for the years ended December 31, 2018 and 2017:

	Positive (Negative) Impact to Net Income
	December 31,
	2018			2017
	(Dollars in millions)
Increase in revenue	$	74		49
Decrease in cost of sales	22			15
Increase in loss on sale of business included in selling, general and administrative expense	—			(102	)
Increase in depreciation expense (one-time)	—			(44	)
Increase in depreciation expense (ongoing)	(69		)	(47	)
Increase in interest expense	(55		)	(39	)
Decrease in income tax expense	7			65
Decrease in net income	$	(21	)	(103	)