Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of outstanding interest rate derivatives designated as cash flow hedges

In March 2007, Level 3 Financing, Inc. entered into two interest rate swap agreements to hedge the interest payments on $1 billion principal amount of floating rate debt. The Company had designated these interest rate swap agreements as cash flow hedges. The hedge designation was terminated in 2012 in connection with certain refinancing activities, and the instruments were settled upon maturity in 2014. Prior to the redesignation of the hedging relationship in 2012,

Schedule of fair value of derivative financial instruments

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets (dollars in millions):

	Liability Derivatives
	December 31, 2013
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value
Interest rate swap agreements	Other current liabilities	$	12

Schedule of the amount of gains (losses) recognized in Other Comprehensive Loss

The amount of net gains recognized in AOCI, including reclassifications of unrealized losses, consists of the following (dollars in millions):

	Year Ended December 31,
Derivatives designated as hedging instruments	2013		2012
Cash flow hedging contracts	$	—	$	90

Schedule of the amount of gains (losses) reclassified from AOCI to Income/Loss

The amount of losses reclassified from AOCI to earnings (effective portions) consists of the following (dollars in millions):

		Year Ended December 31,
Derivatives designated as hedging instruments	Statement of Operations Location	2013		2012
Cash flow hedging contracts	Interest Expense	$	—	$	(26	)

Schedule of effect of derivatives not designated as hedging instruments on net loss

The effect of the Company’s derivatives not designated as hedging instruments on net loss is as follows (dollars in millions):

		Year Ended December 31,
Derivatives not designated as hedging instruments	Statement of Operations Location	2014		2013			2012
Interest rate swaps	Other Expense - Other, net	$	—	$	(2	)	$	(64	)