Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the year ended December 31, 2016

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
(dollars in millions)
Revenue	$	—		$	—		$	3,557		$	4,747		$	(132	)	$	8,172
Costs and Expenses:
Network access costs	—			—			1,283			1,574			(132		)	2,725
Network related expenses	—			—			953			393			—			1,346
Depreciation and amortization	—			—			385			865			—			1,250
Selling, general and administrative expenses	16			5			1,024			362			—			1,407
Total costs and expenses	16			5			3,645			3,194			(132		)	6,728
Operating (Loss) Income	(16		)	(5		)	(88		)	1,553			—			1,444
Other Income (Expense):
Interest income	—			—			3			1			—			4
Interest expense	(36		)	(505		)	(2		)	(3		)	—			(546		)
Interest income (expense) affiliates, net	1,385			2,113			(3,215		)	(283		)	—			—
Equity in net earnings (losses) of subsidiaries	(669		)	(2,033		)	757			—			1,945			—
Other, net	(1		)	(39		)	2			(22		)	—			(60		)
Total other expense	679			(464		)	(2,455		)	(307		)	1,945			(602		)
Income (Loss) before Income Taxes	663			(469		)	(2,543		)	1,246			1,945			842
Income Tax (Expense) Benefit	14			(200		)	(2		)	23			—			(165		)
Net Income (Loss)	677			(669		)	(2,545		)	1,269			1,945			677
Other Comprehensive Loss, Net of Income Taxes	(86		)	—			—			(86		)	86			(86		)
Comprehensive Income (Loss)	$	591		$	(669	)	$	(2,545	)	$	1,183		$	2,031		$	591

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the year ended December 31, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
(dollars in millions)
Revenue	$	—		$	—		$	3,325		$	5,077		$	(173	)	$	8,229
Costs and Expenses:
Network access costs	—			—			1,243			1,763			(173		)	2,833
Network related expenses	—			—			947			485			—			1,432
Depreciation and amortization	—			—			309			857			—			1,166
Selling, general and administrative expenses	4			—			1,064			399			—			1,467
Total costs and expenses	4			—			3,563			3,504			(173		)	6,898
Operating (Loss) Income	(4		)	—			(238		)	1,573			—			1,331
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(51		)	(574		)	(3		)	(14		)	—			(642		)
Interest income (expense) affiliates, net	1,310			1,984			(3,041		)	(253		)	—			—
Equity in net earnings (losses) of subsidiaries	2,162			(1,693		)	177			—			(646		)	—
Other, net	(18		)	(200		)	3			(192		)	—			(407		)
Total other expense	3,403			(483		)	(2,864		)	(458		)	(646		)	(1,048		)
Income (Loss) before Income Taxes	3,399			(483		)	(3,102		)	1,115			(646		)	283
Income Tax (Expense) Benefit	34			2,645			(1		)	472			—			3,150
Net Income (Loss)	3,433			2,162			(3,103		)	1,587			(646		)	3,433
Other Comprehensive (Loss) Income, Net of Income Taxes	(154		)	—			—			(154		)	154			(154		)
Comprehensive Income (Loss)	$	3,279		$	2,162		$	(3,103	)	$	1,433		$	(492	)	$	3,279

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the year ended December 31, 2014

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
(dollars in millions)
Revenue	$	—		$	—		$	3,073		$	3,918		$	(214	)	$	6,777
Costs and Expenses:
Network access costs	—			—			1,177			1,566			(214		)	2,529
Network related expenses	—			—			762			484			—			1,246
Depreciation and amortization	—			—			277			531			—			808
Selling, general and administrative expenses	21			2			735			423			—			1,181
Total costs and expenses	21			2			2,951			3,004			(214		)	5,764
Operating (Loss) Income	(21		)	(2		)	122			914			—			1,013
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(143		)	(492		)	(2		)	(17		)	—			(654		)
Interest income (expense) affiliates, net	1,227			1,827			(2,890		)	(164		)	—			—
Equity in net earnings (losses) of subsidiaries	(710		)	(2,047		)	663			—			2,094			—
Other, net	(53		)	—			7			(76		)	—			(122		)
Total other expense	321			(712		)	(2,222		)	(256		)	2,094			(775		)
Income (Loss) before Income Taxes	300			(714		)	(2,100		)	658			2,094			238
Income Tax (Expense) Benefit	14			4			(1		)	59			—			76
Net Income (Loss)	314			(710		)	(2,101		)	717			2,094			314
Other Comprehensive Income (Loss), Net of Income Taxes	(183		)	—			—			(183		)	183			(183		)
Comprehensive Income (Loss)	$	131		$	(710	)	$	(2,101	)	$	534		$	2,277		$	131

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

December 31, 2016

	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	$	15	$	—	$	1,700		$	104	$	—		$	1,819
Restricted cash and securities	—		—		1			6		—			7
Receivables, less allowances for doubtful accounts	—		—		26			686		—			712
Due from affiliates	17,032		21,715		—			2,180		(40,927		)	—
Other	—		—		87			28		—			115
Total Current Assets	17,047		21,715		1,814			3,004		(40,927		)	2,653
Property, Plant, and Equipment, net	—		—		3,869			6,270		—			10,139
Restricted Cash and Securities	22		—		9			—		—			31
Goodwill and Other Intangibles, net	—		—		353			8,291		—			8,644
Investment in Subsidiaries	16,869		17,599		3,674			—		(38,142		)	—
Deferred Tax Assets	51		2,687		—			632		—			3,370
Other Assets, net	—		—		16			35		—			51
Total Assets	$	33,989	$	42,001	$	9,735		$	18,232	$	(79,069	)	$	24,888
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	—	$	307		$	399	$	—		$	706
Current portion of long-term debt	—		—		2			5		—			7
Accrued payroll and employee benefits	—		—		160			35		—			195
Accrued interest	11		110		—			8		—			129
Current portion of deferred revenue	—		—		116			150		—			266
Due to affiliates	—		—		40,927			—		(40,927		)	—
Other	—		—		127			41		—			168
Total Current Liabilities	11		110		41,639			638		(40,927		)	1,471
Long-Term Debt, less current portion	592		10,108		13			164		—			10,877
Deferred Revenue, less current portion	—		—		719			282		—			1,001
Other Liabilities	16		—		155			451		—			622
Commitments and Contingencies
Stockholders' Equity (Deficit)	33,370		31,783		(32,791		)	16,697		(38,142		)	10,917
Total Liabilities and Stockholders' Equity (Deficit)	$	33,989	$	42,001	$	9,735		$	18,232	$	(79,069	)	$	24,888

Condensed Consolidating Balance Sheets

December 31, 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	$	12	$	6	$	727		$	109	$	—		$	854
Restricted cash and securities	—		—		1			7		—			8
Receivables, less allowances for doubtful accounts	—		—		47			710		—			757
Due from affiliates	12,415		22,759		—			2,816		(37,990		)	—
Other	—		—		56			55		—			111
Total Current Assets	12,427		22,765		831			3,697		(37,990		)	1,730
Property, Plant, and Equipment, net	—		—		3,423			6,455		—			9,878
Restricted Cash and Securities	27		—		14			1		—			42
Goodwill and Other Intangibles, net	—		—		363			8,513		—			8,876
Investment in Subsidiaries	16,772		17,714		3,734			—		(38,220		)	—
Deferred Tax Assets	38		2,847		—			556		—			3,441
Other Assets, net	—		—		12			38		—			50
Total Assets	$	29,264	$	43,326	$	8,377		$	19,260	$	(76,210	)	$	24,017
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1	$	195		$	433	$	—		$	629
Current portion of long-term debt	—		—		2			13		—			15
Accrued payroll and employee benefits	—		—		186			32		—			218
Accrued interest	11		90		—			7		—			108
Current portion of deferred revenue	—		—		119			148		—			267
Due to affiliates	—		—		37,990			—		(37,990		)	—
Other	—		—		115			64		—			179
Total Current Liabilities	11		91		38,607			697		(37,990		)	1,416
Long-Term Debt, less current portion	591		10,092		15			168		—			10,866
Deferred Revenue, less current portion	—		—		680			297		—			977
Other Liabilities	15		—		133			484		—			632
Commitments and Contingencies
Stockholders' Equity (Deficit)	28,647		33,143		(31,058		)	17,614		(38,220		)	10,126
Total Liabilities and Stockholders' Equity (Deficit)	$	29,264	$	43,326	$	8,377		$	19,260	$	(76,210	)	$	24,017

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations		Total
(dollars in millions)
Net Cash (Used in) Provided by Operating Activities	$	(49	)	$	(468	)	$	564		$	2,296		$	—	$	2,343
Cash Flows from Investing Activities:
Capital expenditures	—			—			(704		)	(630		)	—		(1,334		)
Change in restricted cash and securities, net	5			—			6			1			—		12
Proceeds from sale of property, plant and equipment and other assets	—			—			1			2			—		3
Net Cash Provided by (Used in) Investing Activities	5			—			(697		)	(627		)	—		(1,319		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			764			—			—			—		764
Payments on and repurchases of long-term debt, including current portion and refinancing costs	—			(806		)	(1		)	(13		)	—		(820		)
Increase (decrease) due from/to affiliates, net	47			504			1,107			(1,658		)	—		—
Net Cash Provided by (Used in) Financing Activities	47			462			1,106			(1,671		)	—		(56		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(3		)	—		(3		)
Net Change in Cash and Cash Equivalents	3			(6		)	973			(5		)	—		965
Cash and Cash Equivalents at Beginning of Year	12			6			727			109			—		854
Cash and Cash Equivalents at End of Year	$	15		$	—		$	1,700		$	104		$	—	$	1,819

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 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	$	(40	)	$	(617	)	$	193		$	2,319		$	—	$	1,855
Cash Flows from Investing Activities:
Capital expenditures	—			—			(453		)	(776		)	—		(1,229		)
Cash related to deconsolidated Venezuela operations	—			—			—			(83		)	—		(83		)
Change in restricted cash and securities, net	(25		)	—			3			—			—		(22		)
Proceeds from sale of property, plant and equipment and other assets	—			—			—			4			—		4
Other	—			—			(14		)	—			—		(14		)
Net Cash Provided by (Used in) Investing Activities	(25		)	—			(464		)	(855		)	—		(1,344		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			4,832			—			—			—		4,832
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(313		)	(4,725		)	(2		)	(11		)	—		(5,051		)
Increase (decrease) due from/to affiliates, net	383			511			693			(1,587		)	—		—
Net Cash Provided by (Used in) Financing Activities	70			618			691			(1,598		)	—		(219		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(18		)	—		(18		)
Net Change in Cash and Cash Equivalents	5			1			420			(152		)	—		274
Cash and Cash Equivalents at Beginning of Year	7			5			307			261			—		580
Cash and Cash Equivalents at End of Year	$	12		$	6		$	727		$	109		$	—	$	854

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 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	$	(178	)	$	(458	)	$	625		$	1,172		$	—	$	1,161
Cash Flows from Investing Activities:
Capital expenditures	—			—			(362		)	(548		)	—		(910		)
Change in restricted cash and securities, net	—			—			2			(12		)	—		(10		)
Proceeds from sale of property, plant and equipment and other assets	—			—			—			3			—		3
Investment in tw telecom, net of cash acquired	(474		)	—			—			307			—		(167		)
Other	—			—			—			(2		)	—		(2		)
Net Cash Provided by (Used in) Investing Activities	(474		)	—			(360		)	(252		)	—		(1,086		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	590			—			—			(1		)	—		589
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(647		)	—			—			(24		)	—		(671		)
Increase (decrease) due from/to affiliates, net	708			457			(305		)	(860		)	—		—
Net Cash Provided by (Used in) Financing Activities	651			457			(305		)	(885		)	—		(82		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(44		)	—		(44		)
Net Change in Cash and Cash Equivalents	(1		)	(1		)	(40		)	(9		)	—		(51		)
Cash and Cash Equivalents at Beginning of Year	8			6			347			270			—		631
Cash and Cash Equivalents at End of Year	$	7		$	5		$	307		$	261		$	—	$	580