Stockholder's Equity (Deficit)

9 Months Ended

Dec. 31, 2011

Stockholder's Equity (Deficit)

Stockholder's Equity (Deficit)

(14) Stockholder's Equity (Deficit)

Common Stock

        We have one share of common stock (no par value) issued and outstanding, which is owned by QSC.

Other Net Asset Transfers

        During 2010, we recorded a $56 million equity transaction for excess tax deductions, the difference between the acceleration of stock-based compensation expense for both performance and restricted shares and the tax deduction.

        In addition, in the normal course of business, we transfer assets and liabilities to and from QSC and its affiliates, which are recorded through our equity. It is our policy to record these asset transfers based on carrying values.

Dividends

        We declared the following cash and non-cash dividends to QSC:

			Predecessor
	Successor
					Years Ended December 31,
	Nine Months Ended December 31, 2011		Three Months Ended March 31, 2011
					2010		2009
	(Dollars in millions)
Non-cash dividend to QSC(1)	$	28		—		—		—
Cash dividend declared to QSC		600		1,000		2,300		1,700
Cash dividend paid to QSC		900		530		2,260		2,000

(1)

This was a non-cash transaction whereby we transferred assets via dividends to our parent company, QSC.

        The timing of cash payments for declared dividends to QSC is at our discretion in consultation with QSC. We may declare and pay dividends to QSC in excess of our earnings to the extent permitted by applicable law. Our debt covenants do not limit the amount of dividends we can pay to QSC.