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Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

(11) Condensed Consolidating Financial Information

Level 3 Financing, Inc., a wholly owned subsidiary, 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 Level 3 Financing, Inc. 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 our Consolidated Financial Statements are interdependent. The accompanying condensed consolidating financial information presents the statements of comprehensive income, balance sheets and statements of 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 our consolidated results.

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2017



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	933		$	1,174		$	(46	)	$	2,061
Costs and Expense:
Network Access Costs	—			—			339			382			(46		)	675
Network Related Expenses	—			—			246			91			—			337
Depreciation and Amortization	—			—			109			221			—			330
Selling, General and Administrative Expenses	1			1			294			70			—			366
Total Costs and Expenses	1			1			988			764			(46		)	1,708
Operating Income (Loss)	(1		)	(1		)	(55		)	410			—			353
Other Income (Expense):
Interest income	—			—			3			—			—			3
Interest expense	(9		)	(117		)	(1		)	(5		)	—			(132		)
Interest income (expense) affiliates, net	378			567			(868		)	(77		)	—			—
Equity in net earnings (losses) of subsidiaries	(216		)	(632		)	200			—			648			—
Other, net	—			—			(1		)	—			—			(1		)
Total Other Income (Expense)	153			(182		)	(667		)	(82		)	648			(130		)
Income (Loss) before Income Taxes	152			(183		)	(722		)	328			648			223
Income Tax Benefit (Expense)	2			(33		)	(1		)	(37		)	—			(69		)
Net Income (Loss)	154			(216		)	(723		)	291			648			154
Other Comprehensive Income (Loss), Net of Income Taxes	41			—			—			41			(41		)	41
Comprehensive Income (Loss)	$	195		$	(216	)	$	(723	)	$	332		$	607		$	195

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2017



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,853		$	2,331		$	(75	)	$	4,109
Costs and Expense:
Network Access Costs	—			—			662			779			(75		)	1,366
Network Related Expenses	—			—			489			184			—			673
Depreciation and Amortization	—			—			213			437			—			650
Selling, General and Administrative Expenses	2			2			571			155			—			730
Total Costs and Expenses	2			2			1,935			1,555			(75		)	3,419
Operating Income (Loss)	(2		)	(2		)	(82		)	776			—			690
Other Income (Expense):
Interest income	—			—			5			—			—			5
Interest expense	(18		)	(237		)	(2		)	(9		)	—			(266		)
Interest income (expense) affiliates, net	755			1,141			(1,737		)	(159		)	—			—
Equity in net earnings (losses) of subsidiaries	(491		)	(1,278		)	403			—			1,366			—
Other, net	—			(44		)	4			(1		)	—			(41		)
Total Other Income (Expense)	246			(418		)	(1,327		)	(169		)	1,366			(302		)
Income (Loss) before Income Taxes	244			(420		)	(1,409		)	607			1,366			388
Income Tax Benefit (Expense)	5			(71		)	(1		)	(72		)	—			(139		)
Net Income (Loss)	249			(491		)	(1,410		)	535			1,366			249
Other Comprehensive Income (Loss), Net of Income Taxes	62			—			—			62			(62		)	62
Comprehensive Income (Loss)	$	311		$	(491	)	$	(1,410	)	$	597		$	1,304		$	311

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2016



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	879		$	1,211		$	(34	)	$	2,056
Costs and Expense:
Network Access Costs	—			—			315			395			(34		)	676
Network Related Expenses	—			—			237			102			—			339
Depreciation and Amortization	—			—			92			218			—			310
Selling, General and Administrative Expenses	1			2			263			91			—			357
Total Costs and Expenses	1			2			907			806			(34		)	1,682
Operating (Loss) Income	(1		)	(2		)	(28		)	405			—			374
Other Income (Expense):
Interest income	—			—			1			—			—			1
Interest expense	(9		)	(128		)	—			(3		)	—			(140		)
Interest income (expense) affiliates, net	343			528			(802		)	(69		)	—			—
Equity in net earnings (losses) of subsidiaries	(187		)	(489		)	201			—			475			—
Other, net	—			(39		)	1			(7		)	—			(45		)
Total Other Income (Expense)	147			(128		)	(599		)	(79		)	475			(184		)
Income (Loss) before Income Taxes	146			(130		)	(627		)	326			475			190
Income Tax Expense	3			(50		)	(1		)	14			—			(34		)
Net Income (Loss)	149			(180		)	(628		)	340			475			156
Other Comprehensive Income (Loss), Net of Income Taxes	(22		)	—			—			(22		)	22			(22		)
Comprehensive Income (Loss)	$	127		$	(180	)	$	(628	)	$	318		$	497		$	134

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2016



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,745		$	2,430		$	(68	)	$	4,107
Costs and Expense:
Network Access Costs	—			—			635			803			(68		)	1,370
Network Related Expenses	—			—			474			203			—			677
Depreciation and Amortization	—			—			180			431			—			611
Selling, General and Administrative Expenses	2			3			513			195			—			713
Total Costs and Expenses	2			3			1,802			1,632			(68		)	3,371
Operating (Loss) Income	(2		)	(3		)	(57		)	798			—			736
Other Income (Expense):
Interest income	—			—			1			1			—			2
Interest expense	(18		)	(256		)	(1		)	—			—			(275		)
Interest income (expense) affiliates, net	685			1,059			(1,603		)	(141		)	—			—
Equity in net earnings (losses) of subsidiaries	(399		)	(1,030		)	400			—			1,029			—
Other, net	—			(39		)	3			(19		)	—			(55		)
Total Other Income (Expense)	268			(266		)	(1,200		)	(159		)	1,029			(328		)
Income (Loss) before Income Taxes	266			(269		)	(1,257		)	639			1,029			408
Income Tax Expense	7			(119		)	(2		)	(10		)	—			(124		)
Net Income (Loss)	273			(388		)	(1,259		)	629			1,029			284
Other Comprehensive Income (Loss), Net of Income Taxes	23			—			—			23			(23		)	23
Comprehensive Income (Loss)	$	296		$	(388	)	$	(1,259	)	$	652		$	1,006		$	307

Condensed Consolidating Balance Sheets

June 30, 2017



	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	$	14	$	—			$	938		$	104	$	—		$	1,056
Marketable Securities	—		—				1,127			—		—			1,127
Restricted cash and securities	—		—				1			4		—			5
Receivables, less allowances for doubtful accounts	—		—				4			703		—			707
Due from affiliates	17,832		22,581				—			2,824		(43,237		)	—
Other	—		—				116			25		—			141
Total Current Assets	17,846		22,581				2,186			3,660		(43,237		)	3,036
Property, Plant, and Equipment, net	—		—				4,105			6,287		—			10,392
Restricted Cash and Securities	19		—				10			—		—			29
Goodwill and Other Intangibles, net	—		—				352			8,194		—			8,546
Investment in Subsidiaries	16,926		17,664				3,639			—		(38,229		)	—
Deferred Tax Assets	55		2,617				(1		)	564		—			3,235
Other Assets, net	—		—				14			35		—			49
Total Assets	$	34,846	$	42,862			$	10,305		$	18,740	$	(81,466	)	$	25,287

Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1			$	324		$	368	$	—		$	693
Current portion of long-term debt	—		299				2			5		—			306
Accrued payroll and employee benefits	—		—				149			29		—			178
Accrued interest	11		79				—			7		—			97
Current portion of deferred revenue	—		—				111			151		—			262
Due to affiliates	—		—				43,237			—		(43,237		)	—
Other	—		(1		)		130			33		—			162
Total Current Liabilities	11		378				43,953			593		(43,237		)	1,698
Long-Term Debt, less current portion	593		9,816				12			163		—			10,584
Deferred Revenue, less current portion	—		—				781			277		—			1,058
Other Liabilities	16		—				164			452		—			632
Commitments and Contingencies						—
Stockholders' Equity (Deficit)	34,226		32,668				(34,605		)	17,255		(38,229		)	11,315
Total Liabilities and Stockholders' Equity (Deficit)	$	34,846	$	42,862			$	10,305		$	18,740	$	(81,466	)	$	25,287

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 Statements of Cash Flows

Six Months Ended June 30, 2017



	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	$	(14	)	$	(267	)	$	352		$	1,029		$	—	$	1,100
Cash Flows from Investing Activities:
Capital expenditures	—			—			(427		)	(269		)	—		(696		)
Decrease (increase) in restricted cash and securities, net	3			—			(1		)	2			—		4
Purchases of marketable securities	—			—			(1,127		)	—			—		(1,127		)
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			—			—		—
Net Cash Provided by (Used in) Investing Activities	3			—			(1,555		)	(267		)	—		(1,819		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			4,569			—			—			—		4,569
Payments on and repurchases of long-term debt and capital leases	—			(4,611		)	(1		)	(3		)	—		(4,615		)
Increase (decrease) due from/to affiliates, net	10			309			442			(761		)	—		—
Net Cash Provided by (Used in) Financing Activities	10			267			441			(764		)	—		(46		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			2			—		2
Net Change in Cash and Cash Equivalents	(1		)	—			(762		)	—			—		(763		)
Cash and Cash Equivalents at Beginning of Period	15			—			1,700			104			—		1,819
Cash and Cash Equivalents at End of Period	$	14		$	—		$	938		$	104		$	—	$	1,056

Condensed Consolidating Statements of Cash Flows

Six Months Ended June 30, 2016



	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	$	(18	)	$	(225	)	$	274		$	1,110		$	—	$	1,141
Cash Flows from Investing Activities:
Capital expenditures	—			—			(333		)	(331		)	—		(664		)
Decrease in restricted cash and securities, net	5			—			6			—			—		11
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			1			—		1
Net Cash Used in Investing Activities	5			—			(327		)	(330		)	—		(652		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			764			—			—			—		764
Payments on and repurchases of long-term debt and capital leases	—			(806		)	—			(10		)	—		(816		)
Increase (decrease) due from/to affiliates, net	12			267			528			(807		)	—		—
Net Cash Provided by (Used in) Financing Activities	12			225			528			(817		)	—		(52		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			—			—		—
Net Change in Cash and Cash Equivalents	(1		)	—			475			(37		)	—		437
Cash and Cash Equivalents at Beginning of Period	12			6			727			109			—		854
Cash and Cash Equivalents at End of Period	$	11		$	6		$	1,202		$	72		$	—	$	1,291

Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2017



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	933		$	1,174		$	(46	)	$	2,061
Costs and Expense:
Network Access Costs	—			—			339			382			(46		)	675
Network Related Expenses	—			—			246			91			—			337
Depreciation and Amortization	—			—			109			221			—			330
Selling, General and Administrative Expenses	1			1			294			70			—			366
Total Costs and Expenses	1			1			988			764			(46		)	1,708
Operating Income (Loss)	(1		)	(1		)	(55		)	410			—			353
Other Income (Expense):
Interest income	—			—			3			—			—			3
Interest expense	(9		)	(117		)	(1		)	(5		)	—			(132		)
Interest income (expense) affiliates, net	378			567			(868		)	(77		)	—			—
Equity in net earnings (losses) of subsidiaries	(216		)	(632		)	200			—			648			—
Other, net	—			—			(1		)	—			—			(1		)
Total Other Income (Expense)	153			(182		)	(667		)	(82		)	648			(130		)
Income (Loss) before Income Taxes	152			(183		)	(722		)	328			648			223
Income Tax Benefit (Expense)	2			(33		)	(1		)	(37		)	—			(69		)
Net Income (Loss)	154			(216		)	(723		)	291			648			154
Other Comprehensive Income (Loss), Net of Income Taxes	41			—			—			41			(41		)	41
Comprehensive Income (Loss)	$	195		$	(216	)	$	(723	)	$	332		$	607		$	195

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2017



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,853		$	2,331		$	(75	)	$	4,109
Costs and Expense:
Network Access Costs	—			—			662			779			(75		)	1,366
Network Related Expenses	—			—			489			184			—			673
Depreciation and Amortization	—			—			213			437			—			650
Selling, General and Administrative Expenses	2			2			571			155			—			730
Total Costs and Expenses	2			2			1,935			1,555			(75		)	3,419
Operating Income (Loss)	(2		)	(2		)	(82		)	776			—			690
Other Income (Expense):
Interest income	—			—			5			—			—			5
Interest expense	(18		)	(237		)	(2		)	(9		)	—			(266		)
Interest income (expense) affiliates, net	755			1,141			(1,737		)	(159		)	—			—
Equity in net earnings (losses) of subsidiaries	(491		)	(1,278		)	403			—			1,366			—
Other, net	—			(44		)	4			(1		)	—			(41		)
Total Other Income (Expense)	246			(418		)	(1,327		)	(169		)	1,366			(302		)
Income (Loss) before Income Taxes	244			(420		)	(1,409		)	607			1,366			388
Income Tax Benefit (Expense)	5			(71		)	(1		)	(72		)	—			(139		)
Net Income (Loss)	249			(491		)	(1,410		)	535			1,366			249
Other Comprehensive Income (Loss), Net of Income Taxes	62			—			—			62			(62		)	62
Comprehensive Income (Loss)	$	311		$	(491	)	$	(1,410	)	$	597		$	1,304		$	311

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2016



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	879		$	1,211		$	(34	)	$	2,056
Costs and Expense:
Network Access Costs	—			—			315			395			(34		)	676
Network Related Expenses	—			—			237			102			—			339
Depreciation and Amortization	—			—			92			218			—			310
Selling, General and Administrative Expenses	1			2			263			91			—			357
Total Costs and Expenses	1			2			907			806			(34		)	1,682
Operating (Loss) Income	(1		)	(2		)	(28		)	405			—			374
Other Income (Expense):
Interest income	—			—			1			—			—			1
Interest expense	(9		)	(128		)	—			(3		)	—			(140		)
Interest income (expense) affiliates, net	343			528			(802		)	(69		)	—			—
Equity in net earnings (losses) of subsidiaries	(187		)	(489		)	201			—			475			—
Other, net	—			(39		)	1			(7		)	—			(45		)
Total Other Income (Expense)	147			(128		)	(599		)	(79		)	475			(184		)
Income (Loss) before Income Taxes	146			(130		)	(627		)	326			475			190
Income Tax Expense	3			(50		)	(1		)	14			—			(34		)
Net Income (Loss)	149			(180		)	(628		)	340			475			156
Other Comprehensive Income (Loss), Net of Income Taxes	(22		)	—			—			(22		)	22			(22		)
Comprehensive Income (Loss)	$	127		$	(180	)	$	(628	)	$	318		$	497		$	134

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2016



	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,745		$	2,430		$	(68	)	$	4,107
Costs and Expense:
Network Access Costs	—			—			635			803			(68		)	1,370
Network Related Expenses	—			—			474			203			—			677
Depreciation and Amortization	—			—			180			431			—			611
Selling, General and Administrative Expenses	2			3			513			195			—			713
Total Costs and Expenses	2			3			1,802			1,632			(68		)	3,371
Operating (Loss) Income	(2		)	(3		)	(57		)	798			—			736
Other Income (Expense):
Interest income	—			—			1			1			—			2
Interest expense	(18		)	(256		)	(1		)	—			—			(275		)
Interest income (expense) affiliates, net	685			1,059			(1,603		)	(141		)	—			—
Equity in net earnings (losses) of subsidiaries	(399		)	(1,030		)	400			—			1,029			—
Other, net	—			(39		)	3			(19		)	—			(55		)
Total Other Income (Expense)	268			(266		)	(1,200		)	(159		)	1,029			(328		)
Income (Loss) before Income Taxes	266			(269		)	(1,257		)	639			1,029			408
Income Tax Expense	7			(119		)	(2		)	(10		)	—			(124		)
Net Income (Loss)	273			(388		)	(1,259		)	629			1,029			284
Other Comprehensive Income (Loss), Net of Income Taxes	23			—			—			23			(23		)	23
Comprehensive Income (Loss)	$	296		$	(388	)	$	(1,259	)	$	652		$	1,006		$	307

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

June 30, 2017



	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	$	14	$	—			$	938		$	104	$	—		$	1,056
Marketable Securities	—		—				1,127			—		—			1,127
Restricted cash and securities	—		—				1			4		—			5
Receivables, less allowances for doubtful accounts	—		—				4			703		—			707
Due from affiliates	17,832		22,581				—			2,824		(43,237		)	—
Other	—		—				116			25		—			141
Total Current Assets	17,846		22,581				2,186			3,660		(43,237		)	3,036
Property, Plant, and Equipment, net	—		—				4,105			6,287		—			10,392
Restricted Cash and Securities	19		—				10			—		—			29
Goodwill and Other Intangibles, net	—		—				352			8,194		—			8,546
Investment in Subsidiaries	16,926		17,664				3,639			—		(38,229		)	—
Deferred Tax Assets	55		2,617				(1		)	564		—			3,235
Other Assets, net	—		—				14			35		—			49
Total Assets	$	34,846	$	42,862			$	10,305		$	18,740	$	(81,466	)	$	25,287

Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1			$	324		$	368	$	—		$	693
Current portion of long-term debt	—		299				2			5		—			306
Accrued payroll and employee benefits	—		—				149			29		—			178
Accrued interest	11		79				—			7		—			97
Current portion of deferred revenue	—		—				111			151		—			262
Due to affiliates	—		—				43,237			—		(43,237		)	—
Other	—		(1		)		130			33		—			162
Total Current Liabilities	11		378				43,953			593		(43,237		)	1,698
Long-Term Debt, less current portion	593		9,816				12			163		—			10,584
Deferred Revenue, less current portion	—		—				781			277		—			1,058
Other Liabilities	16		—				164			452		—			632
Commitments and Contingencies						—
Stockholders' Equity (Deficit)	34,226		32,668				(34,605		)	17,255		(38,229		)	11,315
Total Liabilities and Stockholders' Equity (Deficit)	$	34,846	$	42,862			$	10,305		$	18,740	$	(81,466	)	$	25,287

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

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Six Months Ended June 30, 2017



	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	$	(14	)	$	(267	)	$	352		$	1,029		$	—	$	1,100
Cash Flows from Investing Activities:
Capital expenditures	—			—			(427		)	(269		)	—		(696		)
Decrease (increase) in restricted cash and securities, net	3			—			(1		)	2			—		4
Purchases of marketable securities	—			—			(1,127		)	—			—		(1,127		)
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			—			—		—
Net Cash Provided by (Used in) Investing Activities	3			—			(1,555		)	(267		)	—		(1,819		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			4,569			—			—			—		4,569
Payments on and repurchases of long-term debt and capital leases	—			(4,611		)	(1		)	(3		)	—		(4,615		)
Increase (decrease) due from/to affiliates, net	10			309			442			(761		)	—		—
Net Cash Provided by (Used in) Financing Activities	10			267			441			(764		)	—		(46		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			2			—		2
Net Change in Cash and Cash Equivalents	(1		)	—			(762		)	—			—		(763		)
Cash and Cash Equivalents at Beginning of Period	15			—			1,700			104			—		1,819
Cash and Cash Equivalents at End of Period	$	14		$	—		$	938		$	104		$	—	$	1,056

Condensed Consolidating Statements of Cash Flows

Six Months Ended June 30, 2016



	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	$	(18	)	$	(225	)	$	274		$	1,110		$	—	$	1,141
Cash Flows from Investing Activities:
Capital expenditures	—			—			(333		)	(331		)	—		(664		)
Decrease in restricted cash and securities, net	5			—			6			—			—		11
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			1			—		1
Net Cash Used in Investing Activities	5			—			(327		)	(330		)	—		(652		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			764			—			—			—		764
Payments on and repurchases of long-term debt and capital leases	—			(806		)	—			(10		)	—		(816		)
Increase (decrease) due from/to affiliates, net	12			267			528			(807		)	—		—
Net Cash Provided by (Used in) Financing Activities	12			225			528			(817		)	—		(52		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			—			—		—
Net Change in Cash and Cash Equivalents	(1		)	—			475			(37		)	—		437
Cash and Cash Equivalents at Beginning of Period	12			6			727			109			—		854
Cash and Cash Equivalents at End of Period	$	11		$	6		$	1,202		$	72		$	—	$	1,291