Acquisition of Level 3 (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Business Acquisitions, by Acquisition

As of March 31, 2018, the following is our updated assignment of the preliminary estimated aggregate consideration:



	Adjusted November 1, 2017 Balance as of December 31, 2017			Purchase Price Adjustments		Adjusted November 1, 2017 Balance as of March 31, 2018
	(Dollars in millions)
Cash, accounts receivable and other current assets ⁽¹⁾	$	3,317		(3	)	3,314
Property, plant and equipment	9,311			92		9,403
Identifiable intangible assets ⁽²⁾
Customer relationships	8,964			(476	)	8,488
Other	391			(13	)	378
Other noncurrent assets	782			156		938
Current liabilities, excluding current maturities of long-term debt	(1,461		)	—		(1,461	)
Current maturities of long-term debt	(7		)	—		(7	)
Long-term debt	(10,888		)	—		(10,888	)
Deferred revenue and other liabilities	(1,629		)	(65	)	(1,694	)
Goodwill	10,837			304		11,141
Total estimated aggregate consideration	$	19,617		(5	)	19,612

____________________________________________________________________________________________________________


⁽¹⁾	Includes a preliminary estimated fair value of $866 million for accounts receivable, which had a gross contractual value of $884 million on November 1, 2017. The $18 million difference between the gross contractual value and the preliminary estimated fair value assigned represents our best estimate as of November 1, 2017 of contractual cash flows that will not be collected.


⁽²⁾	The preliminary estimate of the weighted-average amortization period for the acquired intangible assets is approximately 12.0 years.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Based upon the changes in the purchase price allocation as of March 31, 2018, our revised estimated amortization expense for intangible assets for the years ending December 31, 2018 through 2022 is as follows:



	(Dollars in millions)
Remainder of 2018	$	1,313
2019	1,677
2020	1,575
2021	1,143
2022	957

Summary of Acquisition Related Expenses

The table below summarizes our acquisition-related expenses, which consist of integration-related expenses, including severance and retention compensation expenses, and transaction-related expenses:



	Three Months Ended March 31,
	2018		2017
	(Dollars in millions)
Transaction-related expenses	$	1	10
Integration-related expenses	70		—
Total acquisition-related expenses	$	71	10

Summary of Pro Forma Information

The following unaudited pro forma financial information presents the combined results of CenturyLink as if the Level 3 acquisition had been consummated as of January 1, 2017.



	Three Months Ended March 31, 2017
Operating revenues	6,194
Net income	172
Basic earnings per common share	0.16
Diluted earnings per common share	0.16