CenturyLink 2015 Annual Report Download - page 196
Download and view the complete annual report
Please find page 196 of the 2015 CenturyLink annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186 -
187 -
188 -
189 -
190 -
191 -
192 -
193 -
194 -
195 -
196 -
197 -
198 -
199 -
200 -
201 -
202
 |
 |
rates or services, actions relating to employee claims, various tax issues, environmental law issues, grievance
hearings before labor regulatory agencies, and miscellaneous third party tort actions.
We are currently defending several patent infringement lawsuits asserted against us by non-practicing
entities, many of whom are seeking substantial recoveries. These cases have progressed to various stages and one
or more may go to trial in the coming 24 months if they are not otherwise resolved. Where applicable, we are
seeking full or partial indemnification from our vendors and suppliers. As with all litigation, we are vigorously
defending these actions and, as a matter of course, are prepared to litigate the matters to judgment, as well as to
evaluate and consider all reasonable settlement opportunities.
We are subject to various foreign, federal, state and local environmental protection and health and safety
laws. From time to time, we are subject to judicial and administrative proceedings brought by various
governmental authorities under these laws. Several such proceedings are currently pending, but none is
reasonably expected to exceed $100,000 in fines and penalties.
The outcome of these other proceedings is not predictable. However, based on current circumstances, we do
not believe that the ultimate resolution of these other proceedings, after considering available defenses and any
insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results
of operations or cash flows.
Capital Leases
We lease certain facilities and equipment under various capital lease arrangements. Depreciation of assets
under capital leases is included in depreciation and amortization expense in our consolidated statements of
operations. Payments on capital leases are included in repayments of long-term debt, including current maturities
in our consolidated statements of cash flows.
The tables below summarize our capital lease activity:
Years Ended December 31,
2015 2014 2013
(Dollars in millions)
Assets acquired through capital leases .......... $17 37 12
Depreciation expense ........................ 96 126 136
Cash payments towards capital leases ........... 89 118 119
As of December 31,
2015 2014
(Dollars in millions)
Assets included in property, plant and equipment . . . $722 850
Accumulated depreciation ..................... 352 393
B-88