Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2015

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

Level 3 Financing, Inc., a wholly owned subsidiary of the Company, has issued senior notes that are unsecured obligations of Level 3 Financing, Inc.; however, they are also fully and unconditionally and jointly and severally guaranteed on an unsecured senior basis by Level 3 Communications, Inc. and Level 3 Communications, LLC.

In conjunction with the registration of the senior notes, the accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10 “Financial statements of guarantors and affiliates whose securities collateralize an issue registered or being registered.”

The operating activities of the separate legal entities included in the Company’s Consolidated Financial Statements are interdependent. The accompanying condensed consolidating financial information presents the results of operations, financial position and cash flows of each legal entity and, on an aggregate basis, the other non-guarantor subsidiaries based on amounts incurred by such entities, and is not intended to present the operating results of those legal entities on a stand-alone basis. Level 3 Communications, LLC leases equipment and certain facilities from other wholly owned subsidiaries of Level 3 Communications, Inc. These transactions are eliminated in the consolidated results of the Company.

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended September 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	830		$	1,271		$	(39	)	$	2,062
Costs and Expense:
Network Access Costs	—			—			300			445			(39		)	706
Network Related Expenses	—			—			252			117			—			369
Depreciation and Amortization	—			—			78			218			—			296
Selling, General and Administrative Expenses	1			—			274			89			—			364
Total Costs and Expenses	1			—			904			869			(39		)	1,735
Operating Income (Loss)	(1		)	—			(74		)	402			—			327
Other Income (Expense):
Interest expense	(9		)	(135		)	—			(1		)	—			(145		)
Interest income (expense) affiliates, net	320			498			(763		)	(55		)	—			—
Equity in net earnings (losses) of subsidiaries	(309		)	(671		)	—			—			980			—
Other, net	—			—			3			(168		)	—			(165		)
Total Other Income (Expense)	2			(308		)	(760		)	(224		)	980			(310		)
Income (Loss) before Income Taxes	1			(308		)	(834		)	178			980			17
Income Tax Expense	—			(1		)	—			(15		)	—			(16		)
Net Income (Loss)	1			(309		)	(834		)	163			980			1
Other Comprehensive Income (Loss), Net of Income Taxes	(72		)	—			—			72			(72		)	(72		)
Comprehensive Income (Loss)	$	(71	)	$	(309	)	$	(834	)	$	235		$	908		$	(71	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Nine Months Ended September 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	2,478		$	3,834		$	(136	)	$	6,176
Costs and Expense:
Network Access Costs	—			—			919			1,342			(136		)	2,125
Network Related Expenses	—			—			713			375			—			1,088
Depreciation and Amortization	—			—			227			645			—			872
Selling, General and Administrative Expenses	3			—			789			306			—			1,098
Total Costs and Expenses	3			—			2,648			2,668			(136		)	5,183
Operating Income (Loss)	(3		)	—			(170		)	1,166			—			993
Other Income (Expense):
Interest Income	—			—			—			1			—			1
Interest expense	(42		)	(436		)	(2		)	(10		)	—			(490		)
Interest income (expense) affiliates, net	984			1,495			(2,298		)	(181		)	—			—
Equity in net earnings (losses) of subsidiaries	(811		)	(1,723		)	177			—			2,357			—
Other, net	(18		)	(145		)	2			(194		)	—			(355		)
Total Other Income (Expense)	113			(809		)	(2,121		)	(384		)	2,357			(844		)
Income (Loss) before Income Taxes	110			(809		)	(2,291		)	782			2,357			149
Income Tax Expense	—			(2		)	—			(37		)	—			(39		)
Net Income (Loss)	110			(811		)	(2,291		)	745			2,357			110
Other Comprehensive Income (Loss), Net of Income Taxes	(128		)	—			—			128			(128		)	(128		)
Comprehensive Income (Loss)	$	(18	)	$	(811	)	$	(2,291	)	$	873		$	2,229		$	(18	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended September 30, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	781		$	901		$	(53	)	$	1,629
Costs and Expense:
Network Access Costs	—			—			291			369			(53		)	607
Network Related Expenses	—			—			195			112			—			307
Depreciation and Amortization	—			—			70			117			—			187
Selling, General and Administrative Expenses	6			—			181			79			—			266
Total Costs and Expenses	6			—			737			677			(53		)	1,367
Operating Income	(6		)	—			44			224			—			262
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(34		)	(112		)	(1		)	(12		)	—			(159		)
Interest income (expense) affiliates, net	314			452			(730		)	(36		)	—			—
Equity in net earnings (losses) of subsidiaries	(189		)	(528		)	162			—			555			—
Other, net	—			—			2			(13		)	—			(11		)
Total Other Expense	91			(188		)	(567		)	(60		)	555			(169		)
Income (Loss) before Income Taxes	85			(188		)	(523		)	164			555			93
Income Tax Expense	—			(1		)	—			(7		)	—			(8		)
Net Income (Loss)	85			(189		)	(523		)	157			555			85
Other Comprehensive Income (Loss), Net of Income Taxes	(137		)	—			—			(137		)	137			(137		)
Comprehensive Income (Loss)	$	(52	)	$	(189	)	$	(523	)	$	20		$	692		$	(52	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Nine Months Ended September 30, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	2,278		$	2,750		$	(165	)	$	4,863
Costs and Expense:
Network Access Costs	—			—			869			1,130			(165		)	1,834
Network Related Expenses	—			—			567			334			—			901
Depreciation and Amortization	—			—			209			349			—			558
Selling, General and Administrative Expenses	7			1			505			275			—			788
Total Costs and Expenses	7			1			2,150			2,088			(165		)	4,081
Operating Income	(7		)	(1		)	128			662			—			782
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(102		)	(337		)	(1		)	(19		)	—			(459		)
Interest income (expense) affiliates, net	905			1,370			(2,169		)	(106		)	—			—
Equity in net earnings (losses) of subsidiaries	(548		)	(1,577		)	502			—			1,623			—
Other, net	—			—			6			(55		)	—			(49		)
Total Other Expense	255			(544		)	(1,662		)	(179		)	1,623			(507		)
Income (Loss) before Income Taxes	248			(545		)	(1,534		)	483			1,623			275
Income Tax Expense	—			(3		)	(1		)	(23		)	—			(27		)
Net Income (Loss)	248			(548		)	(1,535		)	460			1,623			248
Other Comprehensive Income (Loss), Net of Income Taxes	(118		)	—			—			(118		)	118			(118		)
Comprehensive Income (Loss)	$	130		$	(548	)	$	(1,535	)	$	342		$	1,741		$	130

Condensed Consolidating Balance Sheets

September 30, 2015

	Level 3 Communications, Inc.		Level 3 Financing, Inc.		Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries		Eliminations			Total
	(dollars in millions)
Assets
Current Assets:
Cash and cash equivalents	$	13	$	6	$	559		$	113	$	—		$	691
Restricted cash and securities	—		—		1			6		—			7
Receivables, less allowances for doubtful accounts	—		—		68			742		—			810
Due from affiliates	15,304		22,482		—			—		(37,786		)	—
Other	1		19		67			68		—			155
Total Current Assets	15,318		22,507		695			929		(37,786		)	1,663
Property, Plant, and Equipment, net	—		—		3,320			6,492		—			9,812
Restricted Cash and Securities	27		—		15			2		—			44
Goodwill and Other Intangibles, net	—		—		365			8,570		—			8,935
Investment in Subsidiaries	16,737		14,542		3,737			—		(35,016		)	—
Other Assets, net	20		119		11			279		—			429
Total Assets	$	32,102	$	37,168	$	8,143		$	16,272	$	(72,802	)	$	20,883
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1	$	194		$	435	$	—		$	630
Current portion of long-term debt	—		—		3			13		—			16
Accrued payroll and employee benefits	—		—		198			32		—			230
Accrued interest	3		128		—			6		—			137
Current portion of deferred revenue	—		—		113			160		—			273
Due to affiliates	—		—		36,981			805		(37,786		)	—
Other	—		—		94			90		—			184
Total Current Liabilities	3		129		37,583			1,541		(37,786		)	1,470
Long-Term Debt, less current portion	600		10,209		15			173		—			10,997
Deferred Revenue, less current portion	—		—		648			294		—			942
Other Liabilities	15		27		132			520		—			694
Commitments and Contingencies
Stockholders' Equity (Deficit)	31,484		26,803		(30,235		)	13,744		(35,016		)	6,780
Total Liabilities and Stockholders' Equity (Deficit)	$	32,102	$	37,168	$	8,143		$	16,272	$	(72,802	)	$	20,883

Condensed Consolidating Balance Sheets

December 31, 2014

	Level 3 Communications, Inc.		Level 3 Financing, Inc.		Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries		Eliminations			Total
	(dollars in millions)
Assets
Current Assets:
Cash and cash equivalents	$	7	$	5	$	307		$	261	$	—		$	580
Restricted cash and securities	—		—		1			6		—			7
Receivables, less allowances for doubtful accounts	—		—		34			703		—			737
Due from affiliates	14,522		21,270		—			—		(35,792		)	—
Other	2		21		45			97		—			165
Total Current Assets	14,531		21,296		387			1,067		(35,792		)	1,489
Property, Plant, and Equipment, net	—		—		3,152			6,708		—			9,860
Restricted Cash and Securities	3		—		16			1		—			20
Goodwill and Other Intangibles, net	—		—		373			8,730		—			9,103
Investment in Subsidiaries	16,686		14,777		3,729			—		(35,192		)	—
Other Assets, net	28		129		9			309		—			475
Total Assets	$	31,248	$	36,202	$	7,666		$	16,815	$	(70,984	)	$	20,947
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	—	$	215		$	449	$	—		$	664
Current portion of long-term debt	333		—		3			13		—			349
Accrued payroll and employee benefits	—		—		174			99		—			273
Accrued interest	12		158		—			4		—			174
Current portion of deferred revenue	—		—		118			169		—			287
Due to affiliates	—		—		34,401			1,391		(35,792		)	—
Other	—		2		62			103		—			167
Total Current Liabilities	345		160		34,973			2,228		(35,792		)	1,914
Long-Term Debt, less current portion	900		9,893		16			175		—			10,984
Deferred Revenue, less current portion	—		—		617			304		—			921
Other Liabilities	16		24		125			600		—			765
Commitments and Contingencies
Stockholders' Equity (Deficit)	29,987		26,125		(28,065		)	13,508		(35,192		)	6,363
Total Liabilities and Stockholders' Equity (Deficit)	$	31,248	$	36,202	$	7,666		$	16,815	$	(70,984	)	$	20,947

Condensed Consolidating Statements of Cash Flows

Nine Months EndedSeptember 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations		Total
	(dollars in millions)
Net Cash Provided by (Used in) Operating Activities	$	(39	)	$	(447	)	$	57		$	1,728		$	—	$	1,299
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(307		)	(592		)	—		(899		)
Cash related to deconsolidated Venezuela operations	—			—			—			(83		)			(83		)
(Increase) decrease in restricted cash and securities, net	(25		)	—			1			—			—		(24		)
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			3			—		3
Other	—			—			(14		)	—			—		(14		)
Net Cash Used in Investing Activities	(25		)	—			(320		)	(672		)	—		(1,017		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			3,947			—			—			—		3,947
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(313		)	(3,780		)	(1		)	(8		)	—		(4,102		)
Increase (decrease) due from/to affiliates, net	383			281			516			(1,180		)	—		—
Net Cash Provided by (Used in) Financing Activities	70			448			515			(1,188		)	—		(155		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(16		)	—		(16		)
Net Change in Cash and Cash Equivalents	6			1			252			(148		)	—		111
Cash and Cash Equivalents at Beginning of Period	7			5			307			261			—		580
Cash and Cash Equivalents at End of Period	$	13		$	6		$	559		$	113		$	—	$	691

Condensed Consolidating Statements of Cash Flows

Nine Months EndedSeptember 30, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations		Total
	(dollars in millions)
Net Cash Provided by (Used in) Operating Activities	$	(91	)	$	(336	)	$	443		$	749		$	—	$	765
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(261		)	(347		)	—		(608		)
Decrease in restricted cash and securities, net	—			—			1			(11		)	—		(10		)
Proceeds from sale of property, plant and equipment and other assets	—			—			—			3			—		3
Other	—			—			—			(2		)	—		(2		)
Net Cash Used in Investing Activities	—			—			(260		)	(357		)	—		(617		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			—			—			(1		)	—		(1		)
Payments on and repurchases of long-term debt, including current portion and refinancing costs	—			—			—			(8		)	—		(8		)
Increase (decrease) due from/to affiliates, net	90			335			(6		)	(419		)	—		—
Net Cash Provided by (Used in) Financing Activities	90			335			(6		)	(428		)	—		(9		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(41		)	—		(41		)
Net Change in Cash and Cash Equivalents	(1		)	(1		)	177			(77		)	—		98
Cash and Cash Equivalents at Beginning of Period	8			6			347			270			—		631
Cash and Cash Equivalents at End of Period	$	7		$	5		$	524		$	193		$	—	$	729

Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended September 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	830		$	1,271		$	(39	)	$	2,062
Costs and Expense:
Network Access Costs	—			—			300			445			(39		)	706
Network Related Expenses	—			—			252			117			—			369
Depreciation and Amortization	—			—			78			218			—			296
Selling, General and Administrative Expenses	1			—			274			89			—			364
Total Costs and Expenses	1			—			904			869			(39		)	1,735
Operating Income (Loss)	(1		)	—			(74		)	402			—			327
Other Income (Expense):
Interest expense	(9		)	(135		)	—			(1		)	—			(145		)
Interest income (expense) affiliates, net	320			498			(763		)	(55		)	—			—
Equity in net earnings (losses) of subsidiaries	(309		)	(671		)	—			—			980			—
Other, net	—			—			3			(168		)	—			(165		)
Total Other Income (Expense)	2			(308		)	(760		)	(224		)	980			(310		)
Income (Loss) before Income Taxes	1			(308		)	(834		)	178			980			17
Income Tax Expense	—			(1		)	—			(15		)	—			(16		)
Net Income (Loss)	1			(309		)	(834		)	163			980			1
Other Comprehensive Income (Loss), Net of Income Taxes	(72		)	—			—			72			(72		)	(72		)
Comprehensive Income (Loss)	$	(71	)	$	(309	)	$	(834	)	$	235		$	908		$	(71	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Nine Months Ended September 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	2,478		$	3,834		$	(136	)	$	6,176
Costs and Expense:
Network Access Costs	—			—			919			1,342			(136		)	2,125
Network Related Expenses	—			—			713			375			—			1,088
Depreciation and Amortization	—			—			227			645			—			872
Selling, General and Administrative Expenses	3			—			789			306			—			1,098
Total Costs and Expenses	3			—			2,648			2,668			(136		)	5,183
Operating Income (Loss)	(3		)	—			(170		)	1,166			—			993
Other Income (Expense):
Interest Income	—			—			—			1			—			1
Interest expense	(42		)	(436		)	(2		)	(10		)	—			(490		)
Interest income (expense) affiliates, net	984			1,495			(2,298		)	(181		)	—			—
Equity in net earnings (losses) of subsidiaries	(811		)	(1,723		)	177			—			2,357			—
Other, net	(18		)	(145		)	2			(194		)	—			(355		)
Total Other Income (Expense)	113			(809		)	(2,121		)	(384		)	2,357			(844		)
Income (Loss) before Income Taxes	110			(809		)	(2,291		)	782			2,357			149
Income Tax Expense	—			(2		)	—			(37		)	—			(39		)
Net Income (Loss)	110			(811		)	(2,291		)	745			2,357			110
Other Comprehensive Income (Loss), Net of Income Taxes	(128		)	—			—			128			(128		)	(128		)
Comprehensive Income (Loss)	$	(18	)	$	(811	)	$	(2,291	)	$	873		$	2,229		$	(18	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended September 30, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	781		$	901		$	(53	)	$	1,629
Costs and Expense:
Network Access Costs	—			—			291			369			(53		)	607
Network Related Expenses	—			—			195			112			—			307
Depreciation and Amortization	—			—			70			117			—			187
Selling, General and Administrative Expenses	6			—			181			79			—			266
Total Costs and Expenses	6			—			737			677			(53		)	1,367
Operating Income	(6		)	—			44			224			—			262
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(34		)	(112		)	(1		)	(12		)	—			(159		)
Interest income (expense) affiliates, net	314			452			(730		)	(36		)	—			—
Equity in net earnings (losses) of subsidiaries	(189		)	(528		)	162			—			555			—
Other, net	—			—			2			(13		)	—			(11		)
Total Other Expense	91			(188		)	(567		)	(60		)	555			(169		)
Income (Loss) before Income Taxes	85			(188		)	(523		)	164			555			93
Income Tax Expense	—			(1		)	—			(7		)	—			(8		)
Net Income (Loss)	85			(189		)	(523		)	157			555			85
Other Comprehensive Income (Loss), Net of Income Taxes	(137		)	—			—			(137		)	137			(137		)
Comprehensive Income (Loss)	$	(52	)	$	(189	)	$	(523	)	$	20		$	692		$	(52	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Nine Months Ended September 30, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	2,278		$	2,750		$	(165	)	$	4,863
Costs and Expense:
Network Access Costs	—			—			869			1,130			(165		)	1,834
Network Related Expenses	—			—			567			334			—			901
Depreciation and Amortization	—			—			209			349			—			558
Selling, General and Administrative Expenses	7			1			505			275			—			788
Total Costs and Expenses	7			1			2,150			2,088			(165		)	4,081
Operating Income	(7		)	(1		)	128			662			—			782
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(102		)	(337		)	(1		)	(19		)	—			(459		)
Interest income (expense) affiliates, net	905			1,370			(2,169		)	(106		)	—			—
Equity in net earnings (losses) of subsidiaries	(548		)	(1,577		)	502			—			1,623			—
Other, net	—			—			6			(55		)	—			(49		)
Total Other Expense	255			(544		)	(1,662		)	(179		)	1,623			(507		)
Income (Loss) before Income Taxes	248			(545		)	(1,534		)	483			1,623			275
Income Tax Expense	—			(3		)	(1		)	(23		)	—			(27		)
Net Income (Loss)	248			(548		)	(1,535		)	460			1,623			248
Other Comprehensive Income (Loss), Net of Income Taxes	(118		)	—			—			(118		)	118			(118		)
Comprehensive Income (Loss)	$	130		$	(548	)	$	(1,535	)	$	342		$	1,741		$	130

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

September 30, 2015

	Level 3 Communications, Inc.		Level 3 Financing, Inc.		Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries		Eliminations			Total
	(dollars in millions)
Assets
Current Assets:
Cash and cash equivalents	$	13	$	6	$	559		$	113	$	—		$	691
Restricted cash and securities	—		—		1			6		—			7
Receivables, less allowances for doubtful accounts	—		—		68			742		—			810
Due from affiliates	15,304		22,482		—			—		(37,786		)	—
Other	1		19		67			68		—			155
Total Current Assets	15,318		22,507		695			929		(37,786		)	1,663
Property, Plant, and Equipment, net	—		—		3,320			6,492		—			9,812
Restricted Cash and Securities	27		—		15			2		—			44
Goodwill and Other Intangibles, net	—		—		365			8,570		—			8,935
Investment in Subsidiaries	16,737		14,542		3,737			—		(35,016		)	—
Other Assets, net	20		119		11			279		—			429
Total Assets	$	32,102	$	37,168	$	8,143		$	16,272	$	(72,802	)	$	20,883
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1	$	194		$	435	$	—		$	630
Current portion of long-term debt	—		—		3			13		—			16
Accrued payroll and employee benefits	—		—		198			32		—			230
Accrued interest	3		128		—			6		—			137
Current portion of deferred revenue	—		—		113			160		—			273
Due to affiliates	—		—		36,981			805		(37,786		)	—
Other	—		—		94			90		—			184
Total Current Liabilities	3		129		37,583			1,541		(37,786		)	1,470
Long-Term Debt, less current portion	600		10,209		15			173		—			10,997
Deferred Revenue, less current portion	—		—		648			294		—			942
Other Liabilities	15		27		132			520		—			694
Commitments and Contingencies
Stockholders' Equity (Deficit)	31,484		26,803		(30,235		)	13,744		(35,016		)	6,780
Total Liabilities and Stockholders' Equity (Deficit)	$	32,102	$	37,168	$	8,143		$	16,272	$	(72,802	)	$	20,883

Condensed Consolidating Balance Sheets

December 31, 2014

	Level 3 Communications, Inc.		Level 3 Financing, Inc.		Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries		Eliminations			Total
	(dollars in millions)
Assets
Current Assets:
Cash and cash equivalents	$	7	$	5	$	307		$	261	$	—		$	580
Restricted cash and securities	—		—		1			6		—			7
Receivables, less allowances for doubtful accounts	—		—		34			703		—			737
Due from affiliates	14,522		21,270		—			—		(35,792		)	—
Other	2		21		45			97		—			165
Total Current Assets	14,531		21,296		387			1,067		(35,792		)	1,489
Property, Plant, and Equipment, net	—		—		3,152			6,708		—			9,860
Restricted Cash and Securities	3		—		16			1		—			20
Goodwill and Other Intangibles, net	—		—		373			8,730		—			9,103
Investment in Subsidiaries	16,686		14,777		3,729			—		(35,192		)	—
Other Assets, net	28		129		9			309		—			475
Total Assets	$	31,248	$	36,202	$	7,666		$	16,815	$	(70,984	)	$	20,947
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	—	$	215		$	449	$	—		$	664
Current portion of long-term debt	333		—		3			13		—			349
Accrued payroll and employee benefits	—		—		174			99		—			273
Accrued interest	12		158		—			4		—			174
Current portion of deferred revenue	—		—		118			169		—			287
Due to affiliates	—		—		34,401			1,391		(35,792		)	—
Other	—		2		62			103		—			167
Total Current Liabilities	345		160		34,973			2,228		(35,792		)	1,914
Long-Term Debt, less current portion	900		9,893		16			175		—			10,984
Deferred Revenue, less current portion	—		—		617			304		—			921
Other Liabilities	16		24		125			600		—			765
Commitments and Contingencies
Stockholders' Equity (Deficit)	29,987		26,125		(28,065		)	13,508		(35,192		)	6,363
Total Liabilities and Stockholders' Equity (Deficit)	$	31,248	$	36,202	$	7,666		$	16,815	$	(70,984	)	$	20,947

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Nine Months EndedSeptember 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations		Total
	(dollars in millions)
Net Cash Provided by (Used in) Operating Activities	$	(39	)	$	(447	)	$	57		$	1,728		$	—	$	1,299
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(307		)	(592		)	—		(899		)
Cash related to deconsolidated Venezuela operations	—			—			—			(83		)			(83		)
(Increase) decrease in restricted cash and securities, net	(25		)	—			1			—			—		(24		)
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			3			—		3
Other	—			—			(14		)	—			—		(14		)
Net Cash Used in Investing Activities	(25		)	—			(320		)	(672		)	—		(1,017		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			3,947			—			—			—		3,947
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(313		)	(3,780		)	(1		)	(8		)	—		(4,102		)
Increase (decrease) due from/to affiliates, net	383			281			516			(1,180		)	—		—
Net Cash Provided by (Used in) Financing Activities	70			448			515			(1,188		)	—		(155		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(16		)	—		(16		)
Net Change in Cash and Cash Equivalents	6			1			252			(148		)	—		111
Cash and Cash Equivalents at Beginning of Period	7			5			307			261			—		580
Cash and Cash Equivalents at End of Period	$	13		$	6		$	559		$	113		$	—	$	691

Condensed Consolidating Statements of Cash Flows

Nine Months EndedSeptember 30, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations		Total
	(dollars in millions)
Net Cash Provided by (Used in) Operating Activities	$	(91	)	$	(336	)	$	443		$	749		$	—	$	765
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(261		)	(347		)	—		(608		)
Decrease in restricted cash and securities, net	—			—			1			(11		)	—		(10		)
Proceeds from sale of property, plant and equipment and other assets	—			—			—			3			—		3
Other	—			—			—			(2		)	—		(2		)
Net Cash Used in Investing Activities	—			—			(260		)	(357		)	—		(617		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			—			—			(1		)	—		(1		)
Payments on and repurchases of long-term debt, including current portion and refinancing costs	—			—			—			(8		)	—		(8		)
Increase (decrease) due from/to affiliates, net	90			335			(6		)	(419		)	—		—
Net Cash Provided by (Used in) Financing Activities	90			335			(6		)	(428		)	—		(9		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(41		)	—		(41		)
Net Change in Cash and Cash Equivalents	(1		)	(1		)	177			(77		)	—		98
Cash and Cash Equivalents at Beginning of Period	8			6			347			270			—		631
Cash and Cash Equivalents at End of Period	$	7		$	5		$	524		$	193		$	—	$	729