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 (loss), 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 Parent, LLC. These transactions are eliminated in our consolidated results.



	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		953		1,023		—		1,976
Operating revenue - affiliates	—			—		54		215		(231	)	38
Total operating revenue	—			—		1,007		1,238		(231	)	2,014
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		464		455		—		919
Selling, general and administrative	—			2		393		183		(231	)	347
Operating expenses - affiliates	—			—		65		22		—		87
Depreciation and amortization	—			—		163		226		—		389
Goodwill Impairment						—		—				—
Total operating expenses	—			2		1,085		886		(231	)	1,742
OPERATING (LOSS) INCOME	—			(2	)	(78	)	352		—		272
OTHER INCOME (EXPENSE)
Interest income - affiliate	16			—		—		—		—		16
Interest (expense) income	(8		)	(120	)	3		(5	)	—		(130	)
Interest income (expense) - intercompany, net	948			162		(1,786	)	675		1		—
Equity in net (losses) earnings of subsidiaries	(848		)	(918	)	561		—		1,205		—
Other income (expense), net	6			—		(5	)	2		—		3
Total other income (expense), net	114			(876	)	(1,227	)	672		1,206		(111	)
INCOME (LOSS) BEFORE INCOME TAXES	114			(878	)	(1,305	)	1,024		1,206		161
Income tax expense (benefit)	3			(30	)	(18	)	96		—		51
NET INCOME (LOSS)	111			(848	)	(1,287	)	928		1,206		110
Other comprehensive (loss), net of income taxes	(8		)	—		—		(8	)	8		(8	)
COMPREHENSIVE INCOME (LOSS)	$	103		(848	)	(1,287	)	920		1,214		102



	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		977		1,048		—		2,025
Operating revenue - affiliates	—			—		6		64		(43	)	27
Total operating revenue	—			—		983		1,112		(43	)	2,052
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		600		380		—		980
Selling, general and administrative expenses	—			2		286		143		(43	)	388
Operating expenses - affiliates	—			—		37		18		—		55
Depreciation and amortization	—			—		174		259		—		433
Total operating expenses	—			2		1,097		800		(43	)	1,856
OPERATING (LOSS) INCOME	—			(2	)	(114	)	312		—		196
OTHER INCOME (EXPENSE)
Interest income - affiliate	16			—		—		—		—		16
Interest expense	(8		)	(113	)	—		(4	)	1		(124	)
Interest income (expense) - intercompany, net	348			604		(878	)	(74	)	—		—
Equity in net losses of subsidiaries	(316		)	(832	)	—		—		1,148		—
Other income (expense), net	—			—		3		(6	)	(1	)	(4	)
Total other income (expense), net	40			(341	)	(875	)	(84	)	1,148		(112	)
INCOME (LOSS) BEFORE INCOME TAXES	40			(343	)	(989	)	228		1,148		84
Income tax (benefit) expense	—			(27	)	(13	)	84		—		44
NET INCOME (LOSS)	40			(316	)	(976	)	144		1,148		40
Other comprehensive loss, net of income taxes	(235		)	—		—		(235	)	235		(235	)
COMPREHENSIVE LOSS	$	(195	)	(316	)	(976	)	(91	)	1,383		(195	)



	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		1,908		2,059		—		3,967
Operating revenue - affiliates	—			—		109		417		(433	)	93
Total operating revenue	—			—		2,017		2,476		(433	)	4,060
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		968		918		—		1,886
Selling, general and administrative	—			3		762		343		(433	)	675
Operating expenses - affiliates	—			—		87		46		—		133
Depreciation and amortization	—			—		308		471		—		779
Goodwill Impairment	—			—		1,369		2,339		—		3,708
Total operating expenses	—			3		3,494		4,117		(433	)	7,181
OPERATING (LOSS) INCOME	—			(3	)	(1,477	)	(1,641	)	—		(3,121	)
OTHER (EXPENSE) INCOME
Interest income - affiliate	32			—		—		—		—		32
Interest expense (income)	(16		)	(239	)	3		(9	)	—		(261	)
Interest income (expense) - intercompany, net	1,881			326		(3,546	)	1,338		1		—
Equity in net losses of subsidiaries	(5,367		)	(5,511	)	(1,236	)	—		12,114		—
Other (expense) income, net	(2		)	—		8		9		—		15
Total other (expense) income, net	(3,472		)	(5,424	)	(4,771	)	1,338		12,115		(214	)
(LOSS) INCOME BEFORE INCOME TAXES	(3,472		)	(5,427	)	(6,248	)	(303	)	12,115		(3,335	)
Income tax expense (benefit)	3			(60	)	—		197		—		140
NET (LOSS) INCOME	(3,475		)	(5,367	)	(6,248	)	(500	)	12,115		(3,475	)
Other comprehensive (loss) income, net of income taxes	(5		)	—		—		(5	)	5		(5	)
COMPREHENSIVE (LOSS) INCOME	$	(3,480	)	(5,367	)	(6,248	)	(505	)	12,120		(3,480	)



	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		1,933		2,154		—		4,087
Operating revenue - affiliates	—			—		31		104		(83	)	52
Total operating revenue	—			—		1,964		2,258		(83	)	4,139
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		1,189		789		—		1,978
Selling, general and administrative	—			3		545		267		(83	)	732
Operating expenses - affiliates	—			—		90		18		—		108
Depreciation and amortization	—			—		344		520		—		864
Total operating expenses	—			3		2,168		1,594		(83	)	3,682
OPERATING (LOSS) INCOME	—			(3	)	(204	)	664		—		457
OTHER (EXPENSE) INCOME
Interest income - affiliate	32			—		—		—		—		32
Interest expense	(16		)	(221	)	(1	)	(7	)	1		(244	)
Interest income (expense) - intercompany, net	703			1,212		(1,759	)	(156	)	—		—
Equity in net (losses) earnings of subsidiaries	(631		)	(1,671	)	(1	)	—		2,303		—
Other income (expense), net	—			—		4		—		(1	)	3
Total other income (expense), net	88			(680	)	(1,757	)	(163	)	2,303		(209	)
INCOME (LOSS) BEFORE INCOME TAXES	88			(683	)	(1,961	)	501		2,303		248
Income tax (benefit) expense	(14		)	(52	)	34		178		—		146
NET INCOME (LOSS)	102			(631	)	(1,995	)	323		2,303		102
Other comprehensive loss, net of income taxes	(163		)	—		—		(163	)	163		(163	)
COMPREHENSIVE (LOSS) INCOME	$	(61	)	(631	)	(1,995	)	160		2,466		(61	)



	Level 3 Parent, LLC		Level 3 Financing, Inc.	Level 3 Communications, LLC	Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	3	—	157	68		—		228
Restricted cash	—		—	—	3		—		3
Accounts receivable	—		—	103	668		—		771
Intercompany advances	18,195		24,063	7,783	2,940		(52,981	)	—
Note receivable - affiliate	1,825		—	—	—		—		1,825
Other	—		—	137	174		—		311
Total current assets	20,023		24,063	8,180	3,853		(52,981	)	3,138
Property, plant, and equipment, net	—		—	3,384	6,270		—		9,654
GOODWILL AND OTHER ASSETS
Goodwill	—		—	423	6,985		—		7,408
Operating lease assets	—		—	1,302	414		(533	)	1,183
Restricted cash	12		—	8	2		—		22
Customer relationships, net	—		—	3,546	3,673		—		7,219
Other intangible assets, net	—		—	429	3		—		432
Investment in subsidiaries	10,175		12,404	2,625	—		(25,204	)	—
Other, net	271		1,482	118	146		(1,390	)	627
Total goodwill and other assets	10,458		13,886	8,451	11,223		(27,127	)	16,891
TOTAL ASSETS	$	30,481	37,949	20,015	21,346		(80,108	)	29,683

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	—	—	7		—		7
Accounts payable	—		31	387	359		—		777
Accounts payable - affiliates	80		16	371	(9	)	—		458
Accrued expenses and other liabilities
Salaries and benefits	—		—	160	37		—		197
Income and other taxes	—		6	39	72		—		117
Current operating lease liabilities	—		—	272	90		(93	)	269
Interest	12		75	1	3		—		91



Intercompany payables	—		—	49,046		3,934	(52,980	)	—
Other	—		—	4		63	—		67
Current portion of deferred revenue	—		—	140		157	—		297
Total current liabilities	92		128	50,420		4,713	(53,073	)	2,280
LONG-TERM DEBT	612		10,054	6		148	—		10,820

DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	—		—	1,044		192	—		1,236
Deferred income taxes, net	56		—	817		774	(1,390	)	257
Noncurrent operating lease liabilities	—		—	1,077		325	(440	)	962
Other	—		—	152		144	—		296
Total deferred revenue and other liabilities	56		—	3,090		1,435	(1,830	)	2,751
MEMBER'S EQUITY (DEFICIT)	29,721		27,767	(33,501	)	15,050	(25,205	)	13,832
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	30,481	37,949	20,015		21,346	(80,108	)	29,683



	Level 3 Parent, LLC		Level 3 Financing, Inc.	Level 3 Communications, LLC	Other Non-Guarantor Subsidiaries	Eliminations		Total
	(Dollars in millions)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2	—	164	77	—		243
Restricted cash	—		—	—	4	—		4
Accounts receivable	—		—	70	642	—		712
Intercompany advances	16,852		23,957	7,744	2,707	(51,260	)	—
Note receivable - affiliate	1,825		—	—	—	—		1,825
Other	1		3	97	133	—		234
Total current assets	18,680		23,960	8,075	3,563	(51,260	)	3,018
Property, plant, and equipment, net	—		—	3,136	6,317	—		9,453

GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,665	9,454	—		11,119
Restricted cash	15		—	9	1	—		25
Customer relationships, net	—		—	3,823	3,744	—		7,567
Other intangible assets, net	—		—	409	1	—		410
Investment in subsidiaries	15,541		17,915	3,861	—	(37,317	)	—
Other, net	275		1,421	110	225	(1,332	)	699
Total goodwill and other assets	15,831		19,336	9,877	13,425	(38,649	)	19,820
TOTAL ASSETS	$	34,511	43,296	21,088	23,305	(89,909	)	32,291

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	—	1	5	—		6
Accounts payable	—		—	380	346	—		726
Accounts payable - affiliates	62		11	162	11	—		246
Accrued expenses and other liabilities
Salaries and benefits	—		—	189	44	—		233
Income and other taxes	—		4	72	54	—		130
Interest	11		78	1	5	—		95
Intercompany payables	—		—	45,347	5,913	(51,260	)	—
Other	3		1	8	66	—		78



Current portion of deferred revenue	—		—	168		142	—		310
Total current liabilities	76		94	46,328		6,586	(51,260	)	1,824
LONG-TERM DEBT	613		10,068	7		150	—		10,838
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	—		—	971		210	—		1,181
Deferred income taxes, net	56		—	841		637	(1,332	)	202
Other	—		—	197		172	—		369
Total deferred revenue and other liabilities	56		—	2,009		1,019	(1,332	)	1,752
MEMBER'S EQUITY (DEFICIT)	33,766		33,134	(27,256	)	15,550	(37,317	)	17,877
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	34,511	43,296	21,088		23,305	(89,909	)	32,291



	Level 3 Parent, LLC			Level 3 Financing, Inc.	Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations	Total
	(Dollars in millions)
OPERATING ACTIVITIES
Net cash provided by operating activities	$	(2	)	—	891		234		—	1,123
INVESTING ACTIVITIES
Capital expenditures	—			—	(335	)	(241	)	—	(576	)
Proceeds from sale of property, plant and equipment and other assets	—			—	1		—		—	1
Net cash used in investing activities	—			—	(334	)	(241	)	—	(575	)
FINANCING ACTIVITIES
Distributions	(565		)	—	—		—		—	(565	)
Other	—			—	—		(2	)	—	(2	)
Increase (decrease) due from affiliate, net	565			—	(565	)	—		—	—
Net cash used in financing activities	—			—	(565	)	(2	)	—	(567	)
Net increase (decrease) in cash, cash equivalents and restricted cash	(2		)	—	(8	)	(9	)	—	(19	)
Cash, cash equivalents and restricted cash at beginning of period	17			—	173		82		—	272
Cash, cash equivalents and restricted cash at end of period	$	15		—	165		73		—	253



	Level 3 Parent, LLC			Level 3 Financing, Inc.	Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations	Total
	(Dollars in millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(85	)	—	899		204		—	1,018
INVESTING ACTIVITIES
Capital expenditures	—			—	(289	)	(257	)	—	(546	)
Proceeds from sale of property, plant and equipment and other assets	68			—	—		51		—	119
Net cash provided by (used in) investing activities	68			—	(289	)	(206	)	—	(427	)
FINANCING ACTIVITIES
Distributions	(605		)	—	—		—		—	(605	)
Other	—			—	—		(5	)	—	(5	)
Increase (decrease) due from/to affiliates, net	605			—	(605	)	—		—	—
Net cash used in financing activities	—			—	(605	)	(5	)	—	(610	)
Net (decrease) increase in cash, cash equivalents and restricted cash	(17		)	—	5		(7	)	—	(19	)
Cash, cash equivalents and restricted cash at beginning of period	32			—	186		113		—	331
Cash, cash equivalents and restricted cash at end of period	$	15		—	191		106		—	312