Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of outstanding interest rate derivatives designated as cash flow hedges

In March 2007, Level 3 Financing, Inc. entered into two interest rate swap agreements to hedge the interest payments on $1 billion notional amount of floating rate debt. The Company had designated these interest rate swap agreements as cash flow hedges. The two interest rate swap agreements are with different counterparties and are for $500 million each. The arrangements began in April 2007 and mature in January 2014. Under the terms of these arrangements, the Company receives interest payments based on rolling three month LIBOR terms and pays interest at the fixed rate of 4.93% under one arrangement and approximately 4.92% under the other.

Interest Rate Derivative	Number of Instruments	Notional (dollars in millions)
Interest rate swaps	Two	$	1,000

Schedule of fair value of derivative financial instruments

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as follows (dollars in millions):

	Liability Derivatives
	December 31, 2012			December 31, 2011
Derivatives designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Cash flow hedging contracts	Other noncurrent liabilities	$	—	Other noncurrent liabilities	$	90
	Liability Derivatives
	December 31, 2012			December 31, 2011
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swap agreements	Other noncurrent liabilities	$	56	Other noncurrent liabilities	$	—

Schedule of the amount of gains (losses) recognized in Other Comprehensive Loss

The amount of gains (losses) recognized in Other Comprehensive Income (Loss) consists of the following (dollars in millions):

	Year Ended December 31,
Derivatives designated as hedging instruments	2012		2011		2010
Cash flow hedging contracts	$	90	$	18	$	(16	)

Schedule of the amount of gains (losses) reclassified from AOCI to Income/Loss

The amount of gains (losses) reclassified from AOCI to Income/Loss (effective portions) consists of the following (dollars in millions):

		Year Ended December 31,
Derivatives designated as hedging instruments	Income Statement Location	2012			2011
Cash flow hedging contracts	Interest Expense	$	(26	)	$	(46	)

Schedule of effect of derivatives not designated as hedging instruments on net loss

The effect of the Company’s derivatives not designated as hedging instruments on net loss is as follows (dollars in millions):

Derivatives not designated as hedging instruments	Location of Gain/Loss recognized in Income/Loss on Derivative
		2012			2011		2010
Embedded equity conversion rights	Other Income (Expense)—Other, net	$	—		$	—	$	10
Interest rate swap agreements	Other Income (Expense)—Other, net	(64		)	—		—