Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent EventsOn July 25, 2021, affiliates of Level 3 Parent, LLC, an indirect wholly-owned subsidiary of Lumen Technologies, Inc., entered into a definitive agreement to divest Lumen’s Latin American business to an affiliate of a fund advised by Stonepeak Partners LP in exchange for $2.735 billion cash, subject to certain working capital and other purchase price adjustments. Level 3 Parent, LLC expects to close the transaction in the first half of 2022, upon receipt of all requisite regulatory approvals in the U.S. and certain countries where the Latin American business operates, as well as the satisfaction of other customary conditions. We have not yet determined the final pre-tax gain or loss on the transaction as a result of various allocations which will be required in connection with consummating the transaction and related restructuring transactions. The purchase agreement contains various customary covenants for transactions of this type, including various indemnities.

On August 3, 2021, Lumen and certain of its wholly-owned subsidiaries entered into a definitive agreement to divest their incumbent local exchange business conducted within 20 Midwestern and Southern states to an affiliate of funds advised by Apollo Global Management, Inc. In exchange, Lumen and its subsidiaries would receive $7.5 billion, subject to (i) offsets for assumed indebtedness (expected to be approximately $1.4 billion) and certain of purchaser’s transaction expenses (estimated to be approximately $245 million) and (ii) working capital and other customary purchase price adjustments. Lumen expects to close the transaction in the second half of 2022 upon receipt of all regulatory approvals and the satisfaction of other customary closing conditions. We have not yet determined the final pre-tax gain or loss on the transaction as a result of various allocations which will be required in connection with consummating the transaction and related restructuring transactions. The definitive purchase agreement contains various customary covenants for transactions of this type, including certain limited indemnities.

In August 2021, our Board of Directors authorized a new 24-month program to repurchase up to an aggregate of $1.0 billion of our outstanding common stock. This new stock repurchase program took effect on August 3, 2021, immediately upon the public announcement thereof. As of August 4, 2021, we had not repurchased any shares of common stock under this new program.