Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

Level 3 Financing, Inc., a wholly owned subsidiary of the Company, has issued senior notes that are unsecured obligations of Level 3 Financing, Inc.; however, they are also fully and unconditionally and jointly and severally guaranteed on an unsecured senior basis by Level 3 Communications, Inc. and Level 3 Communications, LLC.

In conjunction with the registration of the 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 the Company’s Consolidated Financial Statements are interdependent. The accompanying condensed consolidating financial information presents the results of operations, financial position and 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 Communications, Inc. These transactions are eliminated in the consolidated results of the Company.

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2016

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	879		$	1,211		$	(34	)	$	2,056
Costs and Expense:
Network Access Costs	—			—			315			395			(34		)	676
Network Related Expenses	—			—			237			102			—			339
Depreciation and Amortization	—			—			92			218			—			310
Selling, General and Administrative Expenses	1			2			263			91			—			357
Total Costs and Expenses	1			2			907			806			(34		)	1,682
Operating Income (Loss)	(1		)	(2		)	(28		)	405			—			374
Other Income (Expense):
Interest income	—			—			1			—			—			1
Interest expense	(9		)	(128		)	—			(3		)	—			(140		)
Interest income (expense) affiliates, net	343			528			(802		)	(69		)	—			—
Equity in net earnings (losses) of subsidiaries	(187		)	(489		)	201			—			475			—
Other, net	—			(39		)	1			(7		)	—			(45		)
Total Other Income (Expense)	147			(128		)	(599		)	(79		)	475			(184		)
Income (Loss) before Income Taxes	146			(130		)	(627		)	326			475			190
Income Tax Benefit (Expense)	3			(57		)	(1		)	14			—			(41		)
Net Income (Loss)	149			(187		)	(628		)	340			475			149
Other Comprehensive Income (Loss), Net of Income Taxes	(22		)	—			—			(22		)	22			(22		)
Comprehensive Income (Loss)	$	127		$	(187	)	$	(628	)	$	318		$	497		$	127

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2016

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,745		$	2,430		$	(68	)	$	4,107
Costs and Expense:
Network Access Costs	—			—			635			803			(68		)	1,370
Network Related Expenses	—			—			474			203			—			677
Depreciation and Amortization	—			—			180			431			—			611
Selling, General and Administrative Expenses	2			3			513			195			—			713
Total Costs and Expenses	2			3			1,802			1,632			(68		)	3,371
Operating Income (Loss)	(2		)	(3		)	(57		)	798			—			736
Other Income (Expense):
Interest income	—			—			1			1			—			2
Interest expense	(18		)	(256		)	(1		)	—			—			(275		)
Interest income (expense) affiliates, net	685			1,059			(1,603		)	(141		)	—			—
Equity in net earnings (losses) of subsidiaries	(399		)	(1,030		)	400			—			1,029			—
Other, net	—			(39		)	3			(19		)	—			(55		)
Total Other Income (Expense)	268			(266		)	(1,200		)	(159		)	1,029			(328		)
Income (Loss) before Income Taxes	266			(269		)	(1,257		)	639			1,029			408
Income Tax Benefit (Expense)	7			(130		)	(2		)	(10		)	—			(135		)
Net Income (Loss)	273			(399		)	(1,259		)	629			1,029			273
Other Comprehensive Income (Loss), Net of Income Taxes	23			—			—			23			(23		)	23
Comprehensive Income (Loss)	$	296		$	(399	)	$	(1,259	)	$	652		$	1,006		$	296

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	832		$	1,274		$	(45	)	$	2,061
Costs and Expense:
Network Access Costs	—			—			299			442			(45		)	696
Network Related Expenses	—			—			231			132			—			363
Depreciation and Amortization	—			—			75			213			—			288
Selling, General and Administrative Expenses	1			—			268			95			—			364
Total Costs and Expenses	1			—			873			882			(45		)	1,711
Operating (Loss) Income	(1		)	—			(41		)	392			—			350
Other Income (Expense):
Interest income	—			—			—			—			—			—
Interest expense	(14		)	(146		)	(1		)	(4		)	—			(165		)
Interest income (expense) affiliates, net	331			496			(769		)	(58		)	—			—
Equity in net earnings (losses) of subsidiaries	(311		)	(516		)	183			—			644			—
Other, net	(18		)	(145		)	(3		)	(14		)	—			(180		)
Total Other Income (Expense)	(12		)	(311		)	(590		)	(76		)	644			(345		)
Income (Loss) before Income Taxes	(13		)	(311		)	(631		)	316			644			5
Income Tax Expense	—			—			—			(18		)	—			(18		)
Net Income (Loss)	(13		)	(311		)	(631		)	298			644			(13		)
Other Comprehensive Income (Loss), Net of Income Taxes	85			—			—			85			(85		)	85
Comprehensive Income (Loss)	$	72		$	(311	)	$	(631	)	$	383		$	559		$	72

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,650		$	2,561		$	(97	)	$	4,114
Costs and Expense:
Network Access Costs	—			—			619			897			(97		)	1,419
Network Related Expenses	—			—			461			258			—			719
Depreciation and Amortization	—			—			149			427			—			576
Selling, General and Administrative Expenses	2			—			515			217			—			734
Total Costs and Expenses	2			—			1,744			1,799			(97		)	3,448
Operating (Loss) Income	(2		)	—			(94		)	762			—			666
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(33		)	(301		)	(2		)	(9		)	—			(345		)
Interest income (expense) affiliates, net	664			997			(1,535		)	(126		)	—			—
Equity in net earnings (losses) of subsidiaries	(502		)	(1,052		)	360			—			1,194			—
Other, net	(18		)	(145		)	(1		)	(26		)	—			(190		)
Total Other Income (Expense)	111			(501		)	(1,178		)	(160		)	1,194			(534		)
Income (Loss) before Income Taxes	109			(501		)	(1,272		)	602			1,194			132
Income Tax Expense	—			(1		)	—			(22		)	—			(23		)
Net Income (Loss)	109			(502		)	(1,272		)	580			1,194			109
Other Comprehensive Income (Loss), Net of Income Taxes	(56		)	—			—			(56		)	56			(56		)
Comprehensive Income (Loss)	$	53		$	(502	)	$	(1,272	)	$	524		$	1,250		$	53

Condensed Consolidating Balance Sheets

June 30, 2016

	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	$	11	$	6	$	1,202		$	72	$	—		$	1,291
Restricted cash and securities	—		—		1			7		—			8
Receivables, less allowances for doubtful accounts	—		—		81			758		—			839
Due from affiliates	13,140		23,715		—			2,565		(39,420		)	—
Other	—		—		90			50		—			140
Total Current Assets	13,151		23,721		1,374			3,452		(39,420		)	2,278
Property, Plant, and Equipment, net	—		—		3,645			6,428		—			10,073
Restricted Cash and Securities	22		—		9			—		—			31
Goodwill and Other Intangibles, net	—		—		358			8,401		—			8,759
Investment in Subsidiaries	16,816		17,713		3,730			—		(38,259		)	—
Deferred Tax Assets	44		2,717		—			582		—			3,343
Other Assets, net	—		—		12			38		—			50
Total Assets	$	30,033	$	44,151	$	9,128		$	18,901	$	(77,679	)	$	24,534
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	—	$	360		$	402	$	—		$	762
Current portion of long-term debt	—		—		2			5		—			7
Accrued payroll and employee benefits	—		—		125			35		—			160
Accrued interest	11		112		—			8		—			131
Current portion of deferred revenue	—		—		108			160		—			268
Due to affiliates	—		—		39,420			—		(39,420		)	—
Other	—		—		124			47		—			171
Total Current Liabilities	11		112		40,139			657		(39,420		)	1,499
Long-Term Debt, less current portion	592		10,099		14			166		—			10,871
Deferred Revenue, less current portion	—		—		725			302		—			1,027
Other Liabilities	15		—		140			482		—			637
Commitments and Contingencies
Stockholders' Equity (Deficit)	29,415		33,940		(31,890		)	17,294		(38,259		)	10,500
Total Liabilities and Stockholders' Equity (Deficit)	$	30,033	$	44,151	$	9,128		$	18,901	$	(77,679	)	$	24,534

Condensed Consolidating Balance Sheets

December 31, 2015

	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	$	12	$	6	$	727		$	109	$	—		$	854
Restricted cash and securities	—		—		1			7		—			8
Receivables, less allowances for doubtful accounts	—		—		47			710		—			757
Due from affiliates	12,415		22,759		—			2,816		(37,990		)	—
Other	—		—		56			55		—			111
Total Current Assets	12,427		22,765		831			3,697		(37,990		)	1,730
Property, Plant, and Equipment, net	—		—		3,423			6,455		—			9,878
Restricted Cash and Securities	27		—		14			1		—			42
Goodwill and Other Intangibles, net	—		—		363			8,513		—			8,876
Investment in Subsidiaries	16,772		17,714		3,734			—		(38,220		)	—
Deferred Tax Assets	38		2,847		—			556		—			3,441
Other Assets, net	—		—		12			38		—			50
Total Assets	$	29,264	$	43,326	$	8,377		$	19,260	$	(76,210	)	$	24,017
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1	$	195		$	433	$	—		$	629
Current portion of long-term debt	—		—		2			13		—			15
Accrued payroll and employee benefits	—		—		186			32		—			218
Accrued interest	11		90		—			7		—			108
Current portion of deferred revenue	—		—		119			148		—			267
Due to affiliates	—		—		37,990			—		(37,990		)	—
Other	—		—		115			64		—			179
Total Current Liabilities	11		91		38,607			697		(37,990		)	1,416
Long-Term Debt, less current portion	591		10,092		15			168		—			10,866
Deferred Revenue, less current portion	—		—		680			297		—			977
Other Liabilities	15		—		133			484		—			632
Commitments and Contingencies
Stockholders' Equity (Deficit)	28,647		33,143		(31,058		)	17,614		(38,220		)	10,126
Total Liabilities and Stockholders' Equity (Deficit)	$	29,264	$	43,326	$	8,377		$	19,260	$	(76,210	)	$	24,017

Condensed Consolidating Statements of Cash Flows

Six Months EndedJune 30, 2016

	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	$	(18	)	$	(225	)	$	274		$	1,110		$	—	$	1,141
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(333		)	(331		)	—		(664		)
(Increase) decrease in restricted cash and securities, net	5			—			6			—			—		11
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			1			—		1
Net Cash Provided by (Used in) Investing Activities	5			—			(327		)	(330		)	—		(652		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			764			—			—			—		764
Payments on and repurchases of long-term debt and capital leases	—			(806		)	—			(10		)	—		(816		)
Increase (decrease) due from/to affiliates, net	12			267			528			(807		)	—		—
Net Cash Provided by (Used in) Financing Activities	12			225			528			(817		)	—		(52		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			—			—		—
Net Change in Cash and Cash Equivalents	(1		)	—			475			(37		)	—		437
Cash and Cash Equivalents at Beginning of Period	12			6			727			109			—		854
Cash and Cash Equivalents at End of Period	$	11		$	6		$	1,202		$	72		$	—	$	1,291

Condensed Consolidating Statements of Cash Flows

Six Months EndedJune 30, 2015

	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	$	(21	)	$	(339	)	$	(22	)	$	1,106		$	—	$	724
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(188		)	(383		)	—		(571		)
Decrease in restricted cash and securities, net	(25		)	—			1			—			—		(24		)
Proceeds from sale of property, plant and equipment and other assets	—			—			—			2			—		2
Net Cash Used in Investing Activities	(25		)	—			(187		)	(381		)	—		(593		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			3,948			—			—			—		3,948
Payments on and repurchases of long-term debt and capital leases	(313		)	(3,780		)	—			(5		)	—		(4,098		)
Increase (decrease) due from/to affiliates, net	365			171			191			(727		)	—		—
Net Cash Provided by (Used in) Financing Activities	52			339			191			(732		)	—		(150		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(12		)	—		(12		)
Net Change in Cash and Cash Equivalents	6			—			(18		)	(19		)	—		(31		)
Cash and Cash Equivalents at Beginning of Period	7			5			307			261			—		580
Cash and Cash Equivalents at End of Period	$	13		$	5		$	289		$	242		$	—	$	549

Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2016

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	879		$	1,211		$	(34	)	$	2,056
Costs and Expense:
Network Access Costs	—			—			315			395			(34		)	676
Network Related Expenses	—			—			237			102			—			339
Depreciation and Amortization	—			—			92			218			—			310
Selling, General and Administrative Expenses	1			2			263			91			—			357
Total Costs and Expenses	1			2			907			806			(34		)	1,682
Operating Income (Loss)	(1		)	(2		)	(28		)	405			—			374
Other Income (Expense):
Interest income	—			—			1			—			—			1
Interest expense	(9		)	(128		)	—			(3		)	—			(140		)
Interest income (expense) affiliates, net	343			528			(802		)	(69		)	—			—
Equity in net earnings (losses) of subsidiaries	(187		)	(489		)	201			—			475			—
Other, net	—			(39		)	1			(7		)	—			(45		)
Total Other Income (Expense)	147			(128		)	(599		)	(79		)	475			(184		)
Income (Loss) before Income Taxes	146			(130		)	(627		)	326			475			190
Income Tax Benefit (Expense)	3			(57		)	(1		)	14			—			(41		)
Net Income (Loss)	149			(187		)	(628		)	340			475			149
Other Comprehensive Income (Loss), Net of Income Taxes	(22		)	—			—			(22		)	22			(22		)
Comprehensive Income (Loss)	$	127		$	(187	)	$	(628	)	$	318		$	497		$	127

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2016

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,745		$	2,430		$	(68	)	$	4,107
Costs and Expense:
Network Access Costs	—			—			635			803			(68		)	1,370
Network Related Expenses	—			—			474			203			—			677
Depreciation and Amortization	—			—			180			431			—			611
Selling, General and Administrative Expenses	2			3			513			195			—			713
Total Costs and Expenses	2			3			1,802			1,632			(68		)	3,371
Operating Income (Loss)	(2		)	(3		)	(57		)	798			—			736
Other Income (Expense):
Interest income	—			—			1			1			—			2
Interest expense	(18		)	(256		)	(1		)	—			—			(275		)
Interest income (expense) affiliates, net	685			1,059			(1,603		)	(141		)	—			—
Equity in net earnings (losses) of subsidiaries	(399		)	(1,030		)	400			—			1,029			—
Other, net	—			(39		)	3			(19		)	—			(55		)
Total Other Income (Expense)	268			(266		)	(1,200		)	(159		)	1,029			(328		)
Income (Loss) before Income Taxes	266			(269		)	(1,257		)	639			1,029			408
Income Tax Benefit (Expense)	7			(130		)	(2		)	(10		)	—			(135		)
Net Income (Loss)	273			(399		)	(1,259		)	629			1,029			273
Other Comprehensive Income (Loss), Net of Income Taxes	23			—			—			23			(23		)	23
Comprehensive Income (Loss)	$	296		$	(399	)	$	(1,259	)	$	652		$	1,006		$	296

Condensed Consolidating Statements of Comprehensive Income (Loss)

Three Months Ended June 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	832		$	1,274		$	(45	)	$	2,061
Costs and Expense:
Network Access Costs	—			—			299			442			(45		)	696
Network Related Expenses	—			—			231			132			—			363
Depreciation and Amortization	—			—			75			213			—			288
Selling, General and Administrative Expenses	1			—			268			95			—			364
Total Costs and Expenses	1			—			873			882			(45		)	1,711
Operating (Loss) Income	(1		)	—			(41		)	392			—			350
Other Income (Expense):
Interest income	—			—			—			—			—			—
Interest expense	(14		)	(146		)	(1		)	(4		)	—			(165		)
Interest income (expense) affiliates, net	331			496			(769		)	(58		)	—			—
Equity in net earnings (losses) of subsidiaries	(311		)	(516		)	183			—			644			—
Other, net	(18		)	(145		)	(3		)	(14		)	—			(180		)
Total Other Income (Expense)	(12		)	(311		)	(590		)	(76		)	644			(345		)
Income (Loss) before Income Taxes	(13		)	(311		)	(631		)	316			644			5
Income Tax Expense	—			—			—			(18		)	—			(18		)
Net Income (Loss)	(13		)	(311		)	(631		)	298			644			(13		)
Other Comprehensive Income (Loss), Net of Income Taxes	85			—			—			85			(85		)	85
Comprehensive Income (Loss)	$	72		$	(311	)	$	(631	)	$	383		$	559		$	72

Condensed Consolidating Statements of Comprehensive Income (Loss)

Six Months Ended June 30, 2015

	Level 3 Communications, Inc.			Level 3 Financing, Inc.			Level 3 Communications, LLC			Other Non-Guarantor Subsidiaries			Eliminations			Total
	(dollars in millions)
Revenue	$	—		$	—		$	1,650		$	2,561		$	(97	)	$	4,114
Costs and Expense:
Network Access Costs	—			—			619			897			(97		)	1,419
Network Related Expenses	—			—			461			258			—			719
Depreciation and Amortization	—			—			149			427			—			576
Selling, General and Administrative Expenses	2			—			515			217			—			734
Total Costs and Expenses	2			—			1,744			1,799			(97		)	3,448
Operating (Loss) Income	(2		)	—			(94		)	762			—			666
Other Income (Expense):
Interest income	—			—			—			1			—			1
Interest expense	(33		)	(301		)	(2		)	(9		)	—			(345		)
Interest income (expense) affiliates, net	664			997			(1,535		)	(126		)	—			—
Equity in net earnings (losses) of subsidiaries	(502		)	(1,052		)	360			—			1,194			—
Other, net	(18		)	(145		)	(1		)	(26		)	—			(190		)
Total Other Income (Expense)	111			(501		)	(1,178		)	(160		)	1,194			(534		)
Income (Loss) before Income Taxes	109			(501		)	(1,272		)	602			1,194			132
Income Tax Expense	—			(1		)	—			(22		)	—			(23		)
Net Income (Loss)	109			(502		)	(1,272		)	580			1,194			109
Other Comprehensive Income (Loss), Net of Income Taxes	(56		)	—			—			(56		)	56			(56		)
Comprehensive Income (Loss)	$	53		$	(502	)	$	(1,272	)	$	524		$	1,250		$	53

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

June 30, 2016

	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	$	11	$	6	$	1,202		$	72	$	—		$	1,291
Restricted cash and securities	—		—		1			7		—			8
Receivables, less allowances for doubtful accounts	—		—		81			758		—			839
Due from affiliates	13,140		23,715		—			2,565		(39,420		)	—
Other	—		—		90			50		—			140
Total Current Assets	13,151		23,721		1,374			3,452		(39,420		)	2,278
Property, Plant, and Equipment, net	—		—		3,645			6,428		—			10,073
Restricted Cash and Securities	22		—		9			—		—			31
Goodwill and Other Intangibles, net	—		—		358			8,401		—			8,759
Investment in Subsidiaries	16,816		17,713		3,730			—		(38,259		)	—
Deferred Tax Assets	44		2,717		—			582		—			3,343
Other Assets, net	—		—		12			38		—			50
Total Assets	$	30,033	$	44,151	$	9,128		$	18,901	$	(77,679	)	$	24,534
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	—	$	360		$	402	$	—		$	762
Current portion of long-term debt	—		—		2			5		—			7
Accrued payroll and employee benefits	—		—		125			35		—			160
Accrued interest	11		112		—			8		—			131
Current portion of deferred revenue	—		—		108			160		—			268
Due to affiliates	—		—		39,420			—		(39,420		)	—
Other	—		—		124			47		—			171
Total Current Liabilities	11		112		40,139			657		(39,420		)	1,499
Long-Term Debt, less current portion	592		10,099		14			166		—			10,871
Deferred Revenue, less current portion	—		—		725			302		—			1,027
Other Liabilities	15		—		140			482		—			637
Commitments and Contingencies
Stockholders' Equity (Deficit)	29,415		33,940		(31,890		)	17,294		(38,259		)	10,500
Total Liabilities and Stockholders' Equity (Deficit)	$	30,033	$	44,151	$	9,128		$	18,901	$	(77,679	)	$	24,534

Condensed Consolidating Balance Sheets

December 31, 2015

	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	$	12	$	6	$	727		$	109	$	—		$	854
Restricted cash and securities	—		—		1			7		—			8
Receivables, less allowances for doubtful accounts	—		—		47			710		—			757
Due from affiliates	12,415		22,759		—			2,816		(37,990		)	—
Other	—		—		56			55		—			111
Total Current Assets	12,427		22,765		831			3,697		(37,990		)	1,730
Property, Plant, and Equipment, net	—		—		3,423			6,455		—			9,878
Restricted Cash and Securities	27		—		14			1		—			42
Goodwill and Other Intangibles, net	—		—		363			8,513		—			8,876
Investment in Subsidiaries	16,772		17,714		3,734			—		(38,220		)	—
Deferred Tax Assets	38		2,847		—			556		—			3,441
Other Assets, net	—		—		12			38		—			50
Total Assets	$	29,264	$	43,326	$	8,377		$	19,260	$	(76,210	)	$	24,017
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	—	$	1	$	195		$	433	$	—		$	629
Current portion of long-term debt	—		—		2			13		—			15
Accrued payroll and employee benefits	—		—		186			32		—			218
Accrued interest	11		90		—			7		—			108
Current portion of deferred revenue	—		—		119			148		—			267
Due to affiliates	—		—		37,990			—		(37,990		)	—
Other	—		—		115			64		—			179
Total Current Liabilities	11		91		38,607			697		(37,990		)	1,416
Long-Term Debt, less current portion	591		10,092		15			168		—			10,866
Deferred Revenue, less current portion	—		—		680			297		—			977
Other Liabilities	15		—		133			484		—			632
Commitments and Contingencies
Stockholders' Equity (Deficit)	28,647		33,143		(31,058		)	17,614		(38,220		)	10,126
Total Liabilities and Stockholders' Equity (Deficit)	$	29,264	$	43,326	$	8,377		$	19,260	$	(76,210	)	$	24,017

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Six Months EndedJune 30, 2016

	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	$	(18	)	$	(225	)	$	274		$	1,110		$	—	$	1,141
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(333		)	(331		)	—		(664		)
(Increase) decrease in restricted cash and securities, net	5			—			6			—			—		11
Proceeds from the sale of property, plant and equipment and other assets	—			—			—			1			—		1
Net Cash Provided by (Used in) Investing Activities	5			—			(327		)	(330		)	—		(652		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			764			—			—			—		764
Payments on and repurchases of long-term debt and capital leases	—			(806		)	—			(10		)	—		(816		)
Increase (decrease) due from/to affiliates, net	12			267			528			(807		)	—		—
Net Cash Provided by (Used in) Financing Activities	12			225			528			(817		)	—		(52		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			—			—		—
Net Change in Cash and Cash Equivalents	(1		)	—			475			(37		)	—		437
Cash and Cash Equivalents at Beginning of Period	12			6			727			109			—		854
Cash and Cash Equivalents at End of Period	$	11		$	6		$	1,202		$	72		$	—	$	1,291

Condensed Consolidating Statements of Cash Flows

Six Months EndedJune 30, 2015

	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	$	(21	)	$	(339	)	$	(22	)	$	1,106		$	—	$	724
Cash Flows from Investing Activities:
Capital Expenditures	—			—			(188		)	(383		)	—		(571		)
Decrease in restricted cash and securities, net	(25		)	—			1			—			—		(24		)
Proceeds from sale of property, plant and equipment and other assets	—			—			—			2			—		2
Net Cash Used in Investing Activities	(25		)	—			(187		)	(381		)	—		(593		)
Cash Flows from Financing Activities:
Long-term debt borrowings, net of issuance costs	—			3,948			—			—			—		3,948
Payments on and repurchases of long-term debt and capital leases	(313		)	(3,780		)	—			(5		)	—		(4,098		)
Increase (decrease) due from/to affiliates, net	365			171			191			(727		)	—		—
Net Cash Provided by (Used in) Financing Activities	52			339			191			(732		)	—		(150		)
Effect of Exchange Rates on Cash and Cash Equivalents	—			—			—			(12		)	—		(12		)
Net Change in Cash and Cash Equivalents	6			—			(18		)	(19		)	—		(31		)
Cash and Cash Equivalents at Beginning of Period	7			5			307			261			—		580
Cash and Cash Equivalents at End of Period	$	13		$	5		$	289		$	242		$	—	$	549