Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of components of the income tax expense from continuing operations

	Successor				Predecessor
	Year Ended December 31, 2012		Nine Months Ended December 31, 2011		Three Months Ended March 31, 2011			Year Ended December 31, 2010
	(Dollars in millions)
Income tax expense:
Current tax provision (benefit):
Federal	$	22		2		(1	)		(14	)
State and local		—		2		1			11
Total current tax (benefit) provision		22		4		—			(3	)
Deferred tax provision:
Federal		155		24		120			470
State and local		19		4		26			38
Total deferred tax expense		174		28		146			508
Income tax expense	$	196		32		146			505

Schedule of effective income tax rate for continuing operations that differs from the statutory tax rate

	Successor						Predecessor
	Year Ended December 31, 2012			Nine Months Ended December 31, 2011			Three Months Ended March 31, 2011		Year Ended December 31, 2010
	(in percent)
Effective income tax rate:
Federal statutory income tax rate		35.0%			35.0%			35.0%		35.0%
State income taxes—net of federal effect and tax expense (benefit) of income (loss) not recognized		2.5			5.3			4.8		9.0
Medicare subsidy, including effect of 2010 Health Care Legislation		(0.1	)		(1.5	)		—		22.8
Loss on embedded option in convertible debt		—			—			—		37.0
Excess compensation		—			—			—		4.3
Merger-related costs		—			—			—		1.7
Uncertain tax position changes		—			(1.1	)		0.2		—
Disallowed meals and entertainment		0.2			4.2			0.2		0.5
Foreign tax expense		0.8			2.5			—		—
Other		0.5			3.7			0.5		1.2
Adjustments related to prior periods		—			—			—		(0.6	)
Changes in valuation allowance		—			15.3			0.1		1.3
Effective income tax rate		38.9%			63.4%			40.8%		112.2%

Schedule of components of the deferred tax assets and liabilities

	Successor
	Year Ended December 31, 2012			Year Ended December 31, 2011
	(Dollars in millions)
Deferred tax assets and liabilities:
Deferred tax assets:
Net operating loss carryforwards	$	1,973			2,437
Post-retirement and pension benefit costs		1,506			1,296
Deferred loss subject to amortization		244			260
Debt related differences		154			258
Other employee benefits		110			97
Other		422			521
Gross deferred tax assets		4,409			4,869
Valuation allowance on deferred tax assets		(260	)		(256	)
Net deferred tax assets		4,149			4,613
Deferred tax liabilities:
Property, plant and equipment and intangible assets		(1,817	)		(1,512	)
Intangibles		(2,163	)		(2,963	)
Other		(190	)		(209	)
Total deferred tax liabilities		(4,170	)		(4,684	)
Net deferred tax (liability) assets	$	(21	)		(71	)

Schedule of reconciliation of the change in gross unrecognized tax benefits (excluding both interest and any related federal benefit)

	Unrecognized Tax Benefits
	Successor
	2012			2011
	(Dollars in millions)
Balance at January 1	$	64			203
Additions for prior year tax positions		—			3
Reductions for prior year tax positions		(34	)		(1	)
Settlements		—			(141	)
Balance at December 31	$	30			64