Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Dec. 31, 2013

Accounting Policies [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives:

Facility and Leasehold Improvements	15	-	40	years
Network Infrastructure (including fiber and conduit)	25	-	50	years
Operating Equipment	5	-	15	years
Furniture, Fixtures, Office Equipment and Other	3	-	7	years

The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. In connection with its periodic review of the estimated useful lives of property, plant and equipment, the Company may determine that the period it expects to use certain assets is different than the remaining previously estimated useful lives. The Company completed an evaluation in the first quarter 2014 and revised its estimated useful lives for: IP equipment from its historical estimate of four years to a revised estimate of seven years; racks and cabinets from its historical estimate of seven years to a revised estimate of 15 years; and facility equipment from its historical estimate of 10 years to its revised estimate of 15 years. In determining the change in estimated useful lives, the Company, with input from its engineering team, considered its historical usage patterns and retirements, estimates of technological obsolescence and expected usage and maintenance. The change in the estimated useful lives of the Company’s property, plant and equipment was accounted for as a change in accounting estimate on a prospective basis effective January 1, 2014 under the accounting standard related to changes in accounting estimates.

The components of the Company's property, plant and equipment as of December 31, 2015 and 2014 are as follows (dollars in millions):

	Cost		Accumulated Depreciation			Net
December 31, 2015
Land	$	180	$	—		$	180
Land Improvements	76		(53		)	23
Facility and Leasehold Improvements	2,582		(1,352		)	1,230
Network Infrastructure	8,979		(3,669		)	5,310
Operating Equipment	7,988		(5,079		)	2,909
Furniture, Fixtures and Office Equipment	242		(189		)	53
Other	28		(23		)	5
Construction-in-Progress	168		—			168
	$	20,243	$	(10,365	)	$	9,878
December 31, 2014
Land	$	192	$	—		$	192
Land Improvements	73		(50		)	23
Facility and Leasehold Improvements	2,489		(1,265		)	1,224
Network Infrastructure	8,941		(3,447		)	5,494
Operating Equipment	7,217		(4,669		)	2,548
Furniture, Fixtures and Office Equipment	255		(177		)	78
Other	29		(21		)	8
Construction-in-Progress	293		—			293
	$	19,489	$	(9,629	)	$	9,860

Change in Accounting Estimate

The carrying values of assets subject to these revisions were (in millions):

	January 1, 2014
IP Equipment	$	222
Racks and Cabinets	114
Facility Equipment	151
	$	487

The change in estimated useful lives of the Company’s property, plant and equipment resulted in less depreciation expense than would have otherwise been recorded and in the following increase in net income and net income per share for the year ended December 31, 2014 (in millions, except per share amounts):

Net Income	$	90
Basic Net Income per Share	$	0.35
Diluted Net Income per Share	$	0.35