Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Pension Annuitization

On October 19, 2021, we, as sponsor of the Combined Pension Plan, along with the Plan’s independent fiduciary, entered into an agreement committing the Plan to use a portion of its plan assets to purchase an annuity from an insurance company (the "Insurer") to transfer approximately $1.4 billion of the Plan’s pension liabilities. This agreement will irrevocably transfer to the Insurer future Plan benefit obligations for approximately 22,600 U.S. Lumen participants (“Transferred Participants”) effective on December 31, 2021. This annuity transaction will be funded entirely by existing Plan assets.

The Insurer is committed to assume responsibility for administrative and customer service support, including distribution of payments to the Transferred Participants. Transferred Participants’ benefits are not being reduced as a result of this transaction.

The transaction will result in Lumen recognizing a noncash settlement charge in the fourth quarter of 2021 to accelerate recognition of a portion of the actuarial loss included in accumulated other comprehensive loss. We currently estimate that the pension settlement charges recognized in the fourth quarter will be approximately $350 million, dependent upon the completion of the annuity transaction discussed above and the amount of our lump sum pension payments as discussed in Note 10—Employee Benefits. The settlement charge will be recognized in other (expense) income, net in our consolidated statements of operations. The Plan will be remeasured for the annuity and lump sum payments in the fourth quarter of 2021.

For more information on our Combined Pension Plan, see Note 10—Employee Benefits.

Repurchases of Lumen Common Stock

As of October 5, 2021, we completed the August 2021 stock repurchase program, settling 3.5 million shares for $45 million that were previously executed and accrued as of September 30, 2021 and repurchasing an additional 3.6 million shares for $46 million subsequent to the end of the third quarter. Upon completion of the program, we repurchased a total of 80.9 million shares for an average purchase price of $12.36 per share.

For more information, see Note 17—Repurchases of Lumen Common Stock.