Restructuring Charges

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

Employee Separations

Changing economic and business conditions as well as organizational structure optimization efforts have caused the Company to initiate from time to time various workforce reductions resulting in involuntary employee terminations. The Company also has initiated workforce reductions resulting from the integration of previously acquired companies.

During 2015 and 2014, as part of the Merger and to improve organizational effectiveness, the Company initiated workforce reductions. During 2013, the Company initiated workforce reductions primarily focused on labor cost savings and improving organizational effectiveness. Restructuring charges totaled $24 million, $45 million and $47 million in 2015, 2014 and 2013, respectively, of which $8 million, $11 million and $12 million in 2015, 2014 and 2013, respectively, were recorded in Network Related Expenses and $16 million, $34 million and $35 million in 2015, 2014 and 2013, respectively, were recorded in Selling, General and Administrative Expenses.

As of December 31, 2015 and 2014, the Company had $4 million and $37 million, respectively, of employee termination liabilities.

Facility Closings

The Company also has accrued contract termination costs of $11 millionand$20 million as of December 31, 2015 and 2014, respectively, for facility lease costs that the Company continues to incur without economic benefit. Accrued contract termination costs are recorded in other liabilities (current and non-current) in the Consolidated Balance Sheets. The Company expects to pay the majority of these costs through 2025. The Company recognized a charge of approximately $3 million, a charge of less than $1 million and a charge of $7 million in 2015, 2014 and 2013, respectively, as a result of facility lease costs. The Company records charges for contract termination costs within Selling, General and Administrative Expenses in the Consolidated Statements of Operations.