Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the three months ended March 31, 2013

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	685		$	956		$	(64	)	$	1,577
Costs and Expense:
Cost of Revenue	—			—			261			432			(64		)	629
Depreciation and Amortization	—			—			71			123			—			194
Selling, General and Administrative	1			—			381			217			—			599
Total Costs and Expenses	1			—			713			772			(64		)	1,422
Operating Income (Loss)	(1		)	—			(28		)	184			—			155
Other Income (Expense):
Interest expense	(39		)	(126		)	(1		)	(3		)	—			(169		)
Interest income (expense) affiliates, net	273			430			(669		)	(34		)	—			—
Equity in net earnings (losses) of subsidiaries	(311		)	(614		)	146			—			779			—
Other, net	—			(1		)	1			(50		)	—			(50		)
Total Other Expense	(77		)	(311		)	(523		)	(87		)	779			(219		)
Income (Loss) before Income Taxes	(78		)	(311		)	(551		)	97			779			(64		)
Income Tax Expense	—			—			(1		)	(13		)	—			(14		)
Net Income (Loss)	(78		)	(311		)	(552		)	84			779			(78		)
Other Comprehensive Loss, Net of Income Taxes	(52		)	(52		)	—			(52		)	104			(52		)
Comprehensive Income (Loss)	$	(130	)	$	(363	)	$	(552	)	$	32		$	883		$	(130	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the three months ended March 31, 2012

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	626		$	1,023		$	(63	)	$	1,586
Costs and Expense:
Cost of Revenue	—			—			236			481			(60		)	657
Depreciation and Amortization	—			—			67			120			—			187
Selling, General and Administrative	1			—			401			227			(3		)	626
Total Costs and Expenses	1			—			704			828			(63		)	1,470
Operating Income (Loss)	(1		)	—			(78		)	195			—			116
Other Income (Expense):
Interest income	—			—			1			—			—			1
Interest expense	(42		)	(139		)	—			(8		)	—			(189		)
Interest income (expense) affiliates, net	245			399			(559		)	(85		)	—			—
Equity in net earnings (losses) of subsidiaries	(301		)	(539		)	36			—			804			—
Other, net	(39		)	(22		)	1			8			—			(52		)
Total Other Expense	(137		)	(301		)	(521		)	(85		)	804			(240		)
Income (Loss) before Income Taxes	(138		)	(301		)	(599		)	110			804			(124		)
Income Tax Expense	—			—			(1		)	(13		)	—			(14		)
Net Income (Loss)	(138		)	(301		)	(600		)	97			804			(138		)
Other Comprehensive Income, Net of Income Taxes	42			42			—			35			(77		)	42
Comprehensive Income (Loss)	$	(96	)	$	(259	)	$	(600	)	$	132		$	727		$	(96	)

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

March 31, 2013

	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	$	52		$	5		$	328		$	225	$	—		$	610
Restricted cash and securities	—			—			1			6		—			7
Receivables, less allowances for doubtful accounts	—			—			100			631		—			731
Due from affiliates	14,737			15,986			—			—		(30,723		)	—
Other	4			16			69			78		—			167
Total Current Assets	14,793			16,007			498			940		(30,723		)	1,515
Property, Plant, and Equipment, net	—			—			2,943			5,201		—			8,144
Restricted Cash and Securities	12			—			17			4		—			33
Goodwill and Other Intangibles, net	—			—			420			2,386		—			2,806
Investment in Subsidiaries	(12,072		)	(21,105		)	4,200			—		28,977			—
Other Assets, net	15			114			11			244		—			384
Total Assets	$	2,748		$	(4,984	)	$	8,089		$	8,775	$	(1,746	)	$	12,882
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	1		$	2		$	30		$	697	$	—		$	730
Current portion of long-term debt	—			6			2			30		—			38
Accrued payroll and employee benefits	—			—			79			50		—			129
Accrued interest	53			125			—			1		—			179
Current portion of deferred revenue	—			—			107			129		—			236
Due to affiliates	—			—			30,337			386		(30,723		)	—
Other	1			47			44			84		—			176
Total Current Liabilities	55			180			30,599			1,377		(30,723		)	1,488
Long-Term Debt, less current portion	1,571			6,886			19			32		—			8,508
Deferred Revenue, less current portion	—			—			604			289		—			893
Other Liabilities	14			26			24			821		—			885
Commitments and Contingencies	—			—			—			—		—			—
Stockholders' Equity (Deficit)	1,108			(12,076		)	(23,157		)	6,256		28,977			1,108
Total Liabilities and Stockholders' Equity (Deficit)	$	2,748		$	(4,984	)	$	8,089		$	8,775	$	(1,746	)	$	12,882

Condensed Consolidating Balance Sheets

December 31, 2012

	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	$	253		$	5		$	386		$	335	$	—		$	979
Restricted cash and securities	—			—			1			7		—			8
Receivables, less allowances for doubtful accounts	—			—			93			621		—			714
Due from affiliates	14,446			15,709			—			7		(30,162		)	—
Other	3			16			49			73		—			141
Total Current Assets	14,702			15,730			529			1,043		(30,162		)	1,842
Property, Plant, and Equipment, net	—			—			2,926			5,273		—			8,199
Restricted Cash and Securities	12			—			17			6		—			35
Goodwill and Other Intangibles, net	—			—			429			2,404		—			2,833
Investment in Subsidiaries	(11,756		)	(20,470		)	3,242			—		28,984			—
Other Assets, net	16			119			11			252		—			398
Total Assets	$	2,974		$	(4,621	)	$	7,154		$	8,978	$	(1,178	)	$	13,307
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	1		$	2		$	53		$	723	$	—		$	779
Current portion of long-term debt	172			6			6			32		—			216
Accrued payroll and employee benefits	—			—			161			50		—			211
Accrued interest	45			163			—			1		—			209
Current portion of deferred revenue	—			—			109			142		—			251
Due to affiliates	—			—			30,162			—		(30,162		)	—
Other	1			1			29			105		—			136
Total Current Liabilities	219			172			30,520			1,053		(30,162		)	1,802
Long-Term Debt, less current portion	1,570			6,886			20			40		—			8,516
Deferred Revenue, less current portion	—			—			602			285		—			887
Other Liabilities	14			81			75			761		—			931
Commitments and Contingencies	—			—			—			—		—			—
Stockholders' Equity (Deficit)	1,171			(11,760		)	(24,063		)	6,839		28,984			1,171
Total Liabilities and Stockholders' Equity (Deficit)	$	2,974		$	(4,621	)	$	7,154		$	8,978	$	(1,178	)	$	13,307

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2013

	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	$	(30	)	$	(169	)	$	(15	)	$	221		$	—	$	7
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(74		)	(95		)	—		(169		)
Decrease in restricted cash and securities, net	—			—			—			3			—		3
Net Cash Used in Investing Activities	—			—			(74		)	(92		)	—		(166		)
Cash Flows from Financing Activities:
Payments on and repurchases of long-term debt, including current portion and refinancing costs	(172		)	(2		)	(4		)	(8		)	—		(186		)
Increase (decrease) due from/to affiliates, net	1			171			35			(207		)	—		—
Net Cash Provided by (Used in) Financing Activities	(171		)	169			31			(215		)	—		(186		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(24		)	—		(24		)
Net Change in Cash and Cash Equivalents	(201		)	—			(58		)	(110		)	—		(369		)
Cash and Cash Equivalents at Beginning of Period	253			5			386			335			—		979
Cash and Cash Equivalents at End of Period	$	52		$	5		$	328		$	225		$	—	$	610

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2012

	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	$	(36	)	$	(184	)	$	(74	)	$	219		$	—	$	(75	)
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(61		)	(77		)	—		(138		)
Decrease in restricted cash and securities, net	—			—			1			—			—		1
Proceeds from sale of property, plant, and equipment and other assets	—			—			—			5			—		5
Net Cash Used in Investing Activities	—			—			(60		)	(72		)	—		(132		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			880			—			—			—		880
Payments on and repurchases of long-term debt, including current portion and refinancing costs	—			(825		)	—			(22		)	—		(847		)
Proceeds from stock options exercised	1			—			—			—			—		1
Increase (decrease) due from/to affiliates, net	34			129			(63		)	(100		)	—		—
Net Cash Provided by (Used in) Financing Activities	35			184			(63		)	(122		)	—		34
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			3			—		3
Net Change in Cash and Cash Equivalents	(1		)	—			(197		)	28			—		(170		)
Cash and Cash Equivalents at Beginning of Period	2			6			618			292			—		918
Cash and Cash Equivalents at End of Period	$	1		$	6		$	421		$	320		$	—	$	748