In conjunction with the registration of certain of the Level 3 Financing, Inc. Senior Notes, we have presented below the accompanying condensed consolidating financial information 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, our 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	$	—		—		995		1,028		—		2,023
Operating revenue - affiliates	—			—		61		179		(199	)	41
Total operating revenue	—			—		1,056		1,207		(199	)	2,064
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		516		444		—		960
Selling, general and administrative	(25		)	2		322		189		(199	)	289
Operating expenses - affiliates	—			—		54		22		—		76
Depreciation and amortization	—			—		169		261		—		430
Total operating expenses	(25		)	2		1,061		916		(199	)	1,755
OPERATING INCOME (LOSS)	25			(2	)	(5	)	291		—		309
OTHER INCOME (EXPENSE)
Interest income - affiliate	15			—		—		—		—		15
Interest (expense) income	(8		)	(115	)	4		(4	)	—		(123	)
Interest income (expense) - intercompany, net	963			161		(1,125	)	2		(1	)	—
Equity in net (losses) earnings of subsidiaries	(860		)	(934	)	188		—		1,606		—
Other (expense) income, net	(17		)	4		2		(2	)	—		(13	)
Total other income (expense), net	93			(884	)	(931	)	(4	)	1,605		(121	)
INCOME (LOSS) BEFORE INCOME TAXES	118			(886	)	(936	)	287		1,605		188
Income tax expense (benefit)	4			(26	)	2		94		—		74
NET INCOME (LOSS)	114			(860	)	(938	)	193		1,605		114
Other comprehensive (loss), net of income taxes	(110		)	—		—		(110	)	110		(110	)
COMPREHENSIVE INCOME (LOSS)	$	4		(860	)	(938	)	83		1,715		4



	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	$	—		—		951		1,033		—		1,984
Operating revenue - affiliates	—			—		50		47		(71	)	26
Total operating revenue	—			—		1,001		1,080		(71	)	2,010
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		538		438		—		976
Selling, general and administrative expenses	—			—		333		49		(71	)	311
Operating expenses - affiliates	—			—		50		15		—		65
Depreciation and amortization	—			—		176		255		—		431
Total operating expenses	—			—		1,097		757		(71	)	1,783
OPERATING (LOSS) INCOME	—			—		(96	)	323		—		227
OTHER INCOME (EXPENSE)
Interest income - affiliate	16			—		—		2		—		18
Interest expense	(8		)	(118	)	(2	)	(8	)	(1	)	(137	)
Interest income (expense) - intercompany, net	771			234		(997	)	(8	)	—		—
Equity in net (losses) earnings of subsidiaries	(690		)	(834	)	452		—		1,072		—
Other income (expense), net	(3		)	—		(1	)	21		1		18
Total other income (expense), net	86			(718	)	(548	)	7		1,072		(101	)
INCOME (LOSS) BEFORE INCOME TAXES	86			(718	)	(644	)	330		1,072		126
Income tax (benefit) expense	(2		)	(28	)	(18	)	86		—		38
NET INCOME (LOSS)	88			(690	)	(626	)	244		1,072		88
Other comprehensive loss, net of income taxes	(1		)	—		—		(1	)	1		(1	)
COMPREHENSIVE INCOME (LOSS)	$	87		(690	)	(626	)	243		1,073		87



	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	$	—		—		2,903		3,087		—		5,990
Operating revenue - affiliates	—			—		170		596		(632	)	134
Total operating revenue	—			—		3,073		3,683		(632	)	6,124
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		1,484		1,362		—		2,846
Selling, general and administrative	(25		)	5		1,084		532		(632	)	964
Operating expenses - affiliates	—			—		141		68		—		209
Depreciation and amortization	—			—		477		732		—		1,209
Goodwill impairment	—			—		1,369		2,339		—		3,708
Total operating expenses	(25		)	5		4,555		5,033		(632	)	8,936
OPERATING INCOME (LOSS)	25			(5	)	(1,482	)	(1,350	)	—		(2,812	)
OTHER (EXPENSE) INCOME
Interest income - affiliate	47			—		—		—		—		47
Interest (expense) income	(24		)	(354	)	7		(13	)	—		(384	)
Interest income (expense) - intercompany, net	2,844			487		(4,671	)	1,340		—		—
Equity in net losses of subsidiaries	(6,227		)	(6,445	)	(1,048	)	—		13,720		—
Other (expense) income, net	(19		)	4		10		7		—		2
Total other (expense) income, net	(3,379		)	(6,308	)	(5,702	)	1,334		13,720		(335	)
(LOSS) INCOME BEFORE INCOME TAXES	(3,354		)	(6,313	)	(7,184	)	(16	)	13,720		(3,147	)
Income tax expense (benefit)	7			(86	)	2		291		—		214
NET (LOSS) INCOME	(3,361		)	(6,227	)	(7,186	)	(307	)	13,720		(3,361	)
Other comprehensive (loss), net of income taxes	(115		)	—		—		(115	)	115		(115	)
COMPREHENSIVE LOSS	$	(3,476	)	(6,227	)	(7,186	)	(422	)	13,835		(3,476	)



	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	$	—		—		2,884		3,187		—		6,071
Operating revenue - affiliates	—			—		81		151		(154	)	78
Total operating revenue	—			—		2,965		3,338		(154	)	6,149
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		1,727		1,227		—		2,954
Selling, general and administrative	—			3		878		234		(72	)	1,043
Operating expenses - affiliates	—			—		140		115		(82	)	173
Depreciation and amortization	—			—		520		775		—		1,295
Total operating expenses	—			3		3,265		2,351		(154	)	5,465
OPERATING (LOSS) INCOME	—			(3	)	(300	)	987		—		684
OTHER (EXPENSE) INCOME
Interest income - affiliate	48			—		—		2		—		50
Interest expense	(24		)	(339	)	(3	)	(15	)	—		(381	)
Interest income (expense) - intercompany, net	1,474			1,446		(2,756	)	(164	)	—		—
Equity in net (losses) earnings of subsidiaries	(1,321		)	(2,505	)	451		—		3,375		—
Other income (expense), net	(3		)	—		3		21		—		21
Total other income (expense), net	174			(1,398	)	(2,305	)	(156	)	3,375		(310	)
INCOME (LOSS) BEFORE INCOME TAXES	174			(1,401	)	(2,605	)	831		3,375		374
Income tax (benefit) expense	(16		)	(80	)	16		264		—		184
NET INCOME (LOSS)	190			(1,321	)	(2,621	)	567		3,375		190
Other comprehensive loss, net of income taxes	(164		)	—		—		(164	)	164		(164	)
COMPREHENSIVE INCOME (LOSS)	$	26		(1,321	)	(2,621	)	403		3,539		26



	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	—	1,156	65	—		1,224
Restricted cash	—		—	—	3	—		3
Accounts receivable	—		—	69	649	—		718
Intercompany advances	19,145		24,656	7,542	3,030	(54,373	)	—
Note receivable - affiliate	1,590		—	—	—	—		1,590
Other	—		—	131	178	(15	)	294
Total current assets	20,738		24,656	8,898	3,925	(54,388	)	3,829
Property, plant, and equipment, net	—		—	3,574	6,145	—		9,719
GOODWILL AND OTHER ASSETS
Goodwill	—		—	382	7,007	—		7,389
Operating lease assets	—		—	1,213	378	(489	)	1,102
Restricted cash	12		—	5	2	—		19
Customer relationships, net	—		—	3,465	3,561	—		7,026
Other intangible assets, net	—		—	434	24	—		458
Investment in subsidiaries	9,314		11,471	2,813	—	(23,598	)	—
Other, net	268		1,508	86	200	(1,512	)	550
Total goodwill and other assets	9,594		12,979	8,398	11,172	(25,599	)	16,544
TOTAL ASSETS	$	30,332	37,635	20,870	21,242	(79,987	)	30,092

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	400	—	7	—		407
Accounts payable	—		2	420	331	—		753
Accounts payable - affiliates	80		16	471	—	(15	)	552
Accrued expenses and other liabilities
Salaries and benefits	—		—	174	42	—		216
Income and other taxes	—		7	67	39	—		113
Current operating lease liabilities	—		—	252	89	(97	)	244
Interest	3		71	1	3	—		78



Intercompany payables	—		—	50,785		3,588	(54,373	)	—
Other	1		1	8		61	—		71
Current portion of deferred revenue	—		—	159		137	—		296
Total current liabilities	84		497	52,337		4,297	(54,485	)	2,730
LONG-TERM DEBT	611		10,231	6		147	—		10,995

DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	—		—	1,055		209	—		1,264
Deferred income taxes, net	56		—	781		900	(1,512	)	225
Noncurrent operating lease liabilities	—		—	989		303	(392	)	900
Other	—		—	141		145	—		286
Total deferred revenue and other liabilities	56		—	2,966		1,557	(1,904	)	2,675
MEMBER'S EQUITY (DEFICIT)	29,581		26,907	(34,439	)	15,241	(23,598	)	13,692
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	30,332	37,635	20,870		21,242	(79,987	)	30,092



	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 (used in) provided by operating activities	$	(262	)	—	1,692		414		—	1,844
INVESTING ACTIVITIES
Capital expenditures	—			—	(558	)	(424	)	—	(982	)
Payments of notes receivable - affiliates	235			—	—		—		—	235
Proceeds from sale of property, plant and equipment and other assets	25			—	1		1		—	27
Other, net	—			—	(25	)	—		—	(25	)
Net cash provided by (used in) investing activities	260			—	(582	)	(423	)	—	(745	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			—	988		—		—	988
Payments of long-term debt	—			—	(401	)	(3	)	—	(404	)
Distributions	(709		)	—	—		—		—	(709	)
Increase (decrease) due from affiliate, net	709			—	(709	)	—		—	—
Net cash used in financing activities	—			—	(122	)	(3	)	—	(125	)
Net (decrease) increase in cash, cash equivalents and restricted cash	(2		)	—	988		(12	)	—	974
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		—	1,161		70		—	1,246



	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	$	(49	)	—	1,420		256		—	1,627
INVESTING ACTIVITIES
Capital expenditures	—			—	(392	)	(334	)	—	(726	)
Proceeds from sale of property, plant and equipment and other assets	68			—	—		51		—	119
Net cash provided by (used in) investing activities	68			—	(392	)	(283	)	—	(607	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(5	)	—	(5	)
Distributions	(1,130		)	—	—		—		—	(1,130	)
Increase (decrease) due from/to affiliates, net	1,130			—	(1,130	)	—		—	—
Net cash used in financing activities	—			—	(1,130	)	(5	)	—	(1,135	)
Net increase (decrease) in cash, cash equivalents and restricted cash	19			—	(102	)	(32	)	—	(115	)
Cash, cash equivalents and restricted cash at beginning of period	32			—	186		113		—	331
Cash, cash equivalents and restricted cash at end of period	$	51		—	84		81		—	216