Planned Divestiture of Latin American Business (Tables)

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Components of pre-tax income and held for sale assets and liabilities

The pre-tax net income of the Latin American business is estimated to be as follows in the table below:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
	Low		High	Low	High	Low		High	Low	High
	(Dollars in millions)
Pre-tax net income	$	59	72	36	45	$	131	160	108	131

The principal components of the held for sale assets and liabilities as of September 30, 2021 are as follows:

	September 30, 2021
	(Dollars in millions)
Assets held for sale
Cash and cash equivalents	$	36
Accounts receivable, less allowance of $3	83
Other current assets	75
Property, plant and equipment, net accumulated depreciation of $445	1,545
Goodwill (1)	718
Customer relationships and other intangibles, net	129
Other non-current assets	71
Total assets held for sale	$	2,657
Liabilities held for sale
Accounts payable	$	76
Salaries and benefits	22
Income and other taxes	32
Current portion of deferred revenue	28
Other current liabilities	10
Deferred income taxes, net	116
Other non-current liabilities	128
Total liabilities held for sale	$	412

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(1)    The assignment of goodwill was based on the relative fair value of the disposal group compared to the fair value of the total Company prior to being reclassified as held for sale.