Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

For the three months ended September 30, 2011

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non- Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	605		$	399		$	(57	)	$	947
Costs and Expenses:
Cost of Revenue	—			—			222			192			(54		)	360
Depreciation and Amortization	—			—			102			102			—			204
Selling, General and Administrative	—			—			328			50			(3		)	375
Total Costs and Expenses	—			—			652			344			(57		)	939
Operating (Loss) Income	—			—			(47		)	55			—			8
Other Income (Expense):
Interest expense	(51		)	(99		)	—			(28		)	—			(178		)
Interest income (expense) affiliates, net	212			350			(514		)	(48		)	—			—
Equity in net earnings (losses) of subsidiaries	(338		)	(589		)	29			—			898			—
Other, net	(30		)	—			2			(3		)	—			(31		)
Other Income (Expense)	(207		)	(338		)	(483		)	(79		)	898			(209		)
(Loss) Income Before Income Taxes	(207		)	(338		)	(530		)	(24		)	898			(201		)
Income Tax Expense	—			—			(1		)	(5		)	—			(6		)
Net (Loss) Income	$	(207	)	$	(338	)	$	(531	)	$	(29	)	$	898		$	(207	)

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2011

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non- Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,741		$	1,236		$	(169	)	$	2,808
Costs and Expenses:
Cost of Revenue	—			—			658			600			(160		)	1,098
Depreciation and Amortization	—			—			309			306			—			615
Selling, General and Administrative	1			—			941			156			(9		)	1,089
Total Costs and Expenses	1			—			1,908			1,062			(169		)	2,802
Operating (Loss) Income	(1		)	—			(167		)	174			—			6
Other Income (Expense):
Interest expense	(163		)	(296		)	(2		)	(34		)	—			(495		)
Interest income (expense) affiliates, net	633			1,069			(1,545		)	(157		)	—			—
Equity in net earnings (losses) of subsidiaries	(1,011		)	(1,761		)	107			—			2,665			—
Other, net	(51		)	(23		)	8			(2		)	—			(68		)
Other Income (Expense)	(592		)	(1,011		)	(1,432		)	(193		)	2,665			(563		)
(Loss) Income Before Income Taxes	(593		)	(1,011		)	(1,599		)	(19		)	2,665			(557		)
Income Tax Expense	—			—			(21		)	(15		)	—			(36		)
Net (Loss) Income	$	(593	)	$	(1,011	)	$	(1,620	)	$	(34	)	$	2,665		$	(593	)

Condensed Consolidating Statements of Operations

For the three months ended September 30, 2010

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non- Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	518		$	454		$	(60	)	$	912
Costs and Expenses:
Cost of Revenue	—			—			207			218			(57		)	368
Depreciation and Amortization	—			—			107			108			—			215
Selling, General and Administrative	1			—			298			49			(3		)	345
Restructuring Charges	—			—			1			—			—			1
Total Costs and Expenses	1			—			613			375			(60		)	929
Operating (Loss) Income	(1		)	—			(95		)	79			—			(17		)
Other Income (Expense):
Interest expense	(47		)	(94		)	(1		)	(2		)	—			(144		)
Interest income (expense) affiliates, net	199			325			(479		)	(45		)	—			—
Equity in net earnings (losses) of subsidiaries	(314		)	(545		)	42			—			817			—
Other, net	—			—			2			(3		)	—			(1		)
Other Income (Expense)	(162		)	(314		)	(436		)	(50		)	817			(145		)
(Loss) Income Before Income Taxes	(163		)	(314		)	(531		)	29			817			(162		)
Income Tax Expense	—			—			(1		)	—			—			(1		)
Net (Loss) Income	$	(163	)	$	(314	)	$	(532	)	$	29		$	817		$	(163	)

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2010

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non- Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,508		$	1,394		$	(172	)	$	2,730
Costs and Expenses:
Cost of Revenue	—			—			603			685			(163		)	1,125
Depreciation and Amortization	—			—			325			338			—			663
Selling, General and Administrative	2			—			886			147			(9		)	1,026
Restructuring Charges	—			—			1			1			—			2
Total Costs and Expenses	2			—			1,815			1,171			(172		)	2,816
Operating (Loss) Income	(2		)	—			(307		)	223			—			(86		)
Other Income (Expense):
Interest expense	(148		)	(282		)	(1		)	(7		)	—			(438		)
Interest income (expense) affiliates, net	597			974			(1,414		)	(157		)	—			—
Equity in net earnings (losses) of subsidiaries	(1,023		)	(1,660		)	129			—			2,554			—
Other, net	6			(55		)	(4		)	9			—			(44		)
Other Income (Expense)	(568		)	(1,023		)	(1,290		)	(155		)	2,554			(482		)
(Loss) Income Before Income Taxes	(570		)	(1,023		)	(1,597		)	68			2,554			(568		)
Income Tax Expense	—			—			(2		)	—			—			(2		)
Net (Loss) Income	$	(570	)	$	(1,023	)	$	(1,599	)	$	68		$	2,554		$	(570	)

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

September 30, 2011

	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	$	44		$	6		$	329		$	82	$	—	$	461
Restricted cash and securities	—			—			1			1,258		—		1,259
Receivables	—			—			95			242		—		337
Due from (to) affiliates	12,635			12,267			(27,304		)	2,402		—		—
Other	4			11			54			35		—		104
Total Current Assets	12,683			12,284			(26,825		)	4,019		—		2,161
Property, Plant and Equipment, net	—			—			2,824			2,293		—		5,117
Restricted Cash and Securities	18			—			22			81		—		121
Goodwill and Other Intangibles, net	—			—			496			1,232		—		1,728
Investment in Subsidiaries	(11,373		)	(18,891		)	3,396			—		26,868		—
Other Assets, net	13			41			7			66		—		127
Total Assets	$	1,341		$	(6,566	)	$	(20,080	)	$	7,691	$	26,868	$	9,254
Liabilities and Stockholders’ Equity (Deficit)
Current Liabilities:
Accounts payable	$	1		$	—		$	39		$	302	$	—	$	342
Current portion of long-term debt	261			—			2			2		—		265
Accrued payroll and employee benefits	—			—			71			6		—		77
Accrued interest	55			102			—			32		—		189
Current portion of deferred revenue	—			—			110			30		—		140
Other	—			1			57			32		—		90
Total Current Liabilities	317			103			279			404		—		1,103
Long-Term Debt, less current portion	1,531			4,609			23			1,257		—		7,420
Deferred Revenue, less current portion	—			—			684			58		—		742
Other Liabilities	16			99			150			247		—		512
Commitments and Contingencies	—			—			—			—		—
Stockholders’ Equity (Deficit)	(523		)	(11,377		)	(21,216		)	5,725		26,868		(523		)
Total Liabilities and Stockholders’ Equity (Deficit)	$	1,341		$	(6,566	)	$	(20,080	)	$	7,691	$	26,868	$	9,254

Condensed Consolidating Balance Sheets

December 31, 2010

	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	$	173		$	7		$	350		$	86	$	—	$	616
Restricted cash and securities	—			—			1			1		—		2
Receivables	—			—			46			218		—		264
Due from (to) affiliates	11,927			11,424			(26,093		)	2,742		—		—
Other	4			10			41			35		—		90
Total Current Assets	12,104			11,441			(25,655		)	3,082		—		972
Property, Plant and Equipment, net	—			—			2,937			2,365		—		5,302
Restricted Cash and Securities	18			—			21			81		—		120
Goodwill and Other Intangibles, net	—			—			543			1,255		—		1,798
Investment in Subsidiaries	(10,437		)	(17,176		)	3,575			—		24,038		—
Other Assets, net	9			65			6			83		—		163
Total Assets	$	1,694		$	(5,670	)	$	(18,573	)	$	6,866	$	24,038	$	8,355
Liabilities and Stockholders’ Equity (Deficit)
Current Liabilities:
Accounts payable	$	1		$	—		$	57		$	271	$	—	$	329
Current portion of long-term debt	176			—			2			2		—		180
Accrued payroll and employee benefits	—			—			78			6		—		84
Accrued interest	47			99			—			—		—		146
Current portion of deferred revenue	—			—			115			36		—		151
Other	—			1			65			—		—		66
Total Current Liabilities	224			100			317			315		—		956
Long-Term Debt, less current portion	1,612			4,564			24			68		—		6,268
Deferred Revenue, less current portion	—			—			673			63		—		736
Other Liabilities	15			107			154			276		—		552
Commitments and Contingencies	—			—			—			—		—		0
Stockholders’ Equity (Deficit)	(157		)	(10,441		)	(19,741		)	6,144		24,038		(157		)
Total Liabilities and Stockholders’ Equity (Deficit)	$	1,694		$	(5,670	)	$	(18,573	)	$	6,866	$	24,038	$	8,355

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2011

	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	$	(129	)	$	(279	)	$	153		$	454		$	—	$	199
Cash Flows from Investing Activities:
Capital expenditures	—			—			(146		)	(204		)	—		(350		)
Increase in restricted cash and securities, net	—			—			—			(63		)	—		(63		)
Proceeds from sale of property, plant and equipment	—			—			1			3			—		4
Net Cash Used in Investing Activities	—			—			(145		)	(264		)	—		(409		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	292			474			—			(1		)	—		765
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(245		)	(463		)	—			(3		)	—		(711		)
Increase (decrease) due from affiliates, net	(47		)	267			(29		)	(191		)	—		—
Net Cash Provided by (Used in) Financing Activities	—			278			(29		)	(195		)	—		54
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			1			—		1
Net Change in Cash and Cash Equivalents	(129		)	(1		)	(21		)	(4		)	—		(155		)
Cash and Cash Equivalents at Beginning of Period	173			7			350			86			—		616
Cash and Cash Equivalents at End of Period	$	44		$	6		$	329		$	82		$	—	$	461

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2010

	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	$	(131	)	$	(277	)	$	(28	)	$	585		$	—	$	149
Cash Flows from Investing Activities:
Capital expenditures	—			—			(117		)	(202		)	—		(319		)
Decrease in restricted cash and securities, net	—			—			3			1			—		4
Proceeds from sale of property, plant, and equipment	—			—			—			1			—		1
Net Cash Used in Investing Activities	—			—			(114		)	(200		)	—		(314		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	170			613			—			—			—		783
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(328		)	(599		)	(1		)	(1		)	—		(929		)
Increase (decrease) due from affiliates, net	224			262			(19		)	(467		)	—		—
Net Cash Provided by (Used in) Financing Activities	66			276			(20		)	(468		)	—		(146		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(7		)	—		(7		)
Net Change in Cash and Cash Equivalents	(65		)	(1		)	(162		)	(90		)	—		(318		)
Cash and Cash Equivalents at Beginning of Period	236			8			431			161			—		836
Cash and Cash Equivalents at End of Period	$	171		$	7		$	269		$	71		$	—	518