Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of condensed consolidating statements of operations

	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	$	—		—		3,912		4,093		—		8,005
Operating revenue - affiliates	—			—		226		801		(847	)	180
Total operating revenue	—			—		4,138		4,894		(847	)	8,185
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		1,987		1,812		—		3,799
Selling, general and administrative	(50		)	5		1,438		710		(845	)	1,258
Operating expenses - affiliates	—			—		241		93		—		334
Depreciation and amortization	—			—		652		961		—		1,613
Goodwill impairment	—			—		1,369		2,339		—		3,708
Total operating expenses	(50		)	5		5,687		5,915		(845	)	10,712
OPERATING (LOSS) INCOME	50			(5	)	(1,549	)	(1,021	)	(2	)	(2,527	)
OTHER INCOME (EXPENSE)
Interest income	—			—		7		2		—		9
Interest income (expense) - affiliates, net	3,888			658		(5,829	)	1,343		1		61
Interest expense	(29		)	(468	)	13		(18	)	—		(502	)
Equity in net (losses) earnings of subsidiaries	(7,109		)	(7,352	)	570		—		13,891		—
Gain (loss) on modification and extinguishment of debt	10			(5	)	—		—		—		5
Other (expense) income, net	(8		)	—		8		8		—		8
Total other income (expense), net	(3,248		)	(7,167	)	(5,231	)	1,335		13,892		(419	)
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)	(3,198		)	(7,172	)	(6,780	)	314		13,890		(2,946	)
Income tax benefit (expense)	(3		)	63		30		(345	)	—		(255	)
NET INCOME (LOSS)	(3,201		)	(7,109	)	(6,750	)	(31	)	13,890		(3,201	)
Other comprehensive loss, net of income taxes	(8		)	—		—		(8	)	8		(8	)
COMPREHENSIVE INCOME (LOSS)	$	(3,209	)	(7,109	)	(6,750	)	(39	)	13,898		(3,209	)

	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	$	—		—		3,884		4,229		—		8,113
Operating revenue - affiliates	—			—		130		285		(308	)	107
Total operating revenue	—			—		4,014		4,514		(308	)	8,220
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		2,209		1,728		—		3,937
Selling, general and administrative	12			3		392		1,255		(308	)	1,354
Operating expenses - affiliates	—			—		176		81		—		257
Depreciation and amortization	—			—		688		1,016		—		1,704
Total operating expenses	12			3		3,465		4,080		(308	)	7,252
OPERATING (LOSS) INCOME	(12		)	(3	)	549		434		—		968
OTHER INCOME (EXPENSE)
Interest income	—			—		3		1		—		4
Interest income (expense) - affiliates, net	2,430			1,562		(3,803	)	(126	)	—		63
Interest expense	(33		)	(457	)	(3	)	(16	)	—		(509	)
Equity in net (losses) earnings of subsidiaries	(2,044		)	(3,257	)	254		—		5,047		—
Other (expense) income, net	(9		)	—		1		19		—		11
Total other income (expense), net	344			(2,152	)	(3,548	)	(122	)	5,047		(431	)
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)	332			(2,155	)	(2,999	)	312		5,047		537
Income tax benefit (expense)	10			111		(232	)	(85	)	—		(196	)
NET INCOME (LOSS)	342			(2,044	)	(3,231	)	227		5,047		341
Other comprehensive loss, net of income taxes	(195		)	—		—		(195	)	195		(195	)
COMPREHENSIVE INCOME (LOSS)	$	147		(2,044	)	(3,231	)	32		5,242		146

	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	$	—		—		748		671		(28	)	1,391
Operating revenue - affiliates	—			—		16		—		—		16
Total operating revenue	—			—		764		671		(28	)	1,407
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		418		300		(28	)	690
Selling, general and administrative	1			3		179		70		—		253
Operating expenses - affiliates	—			—		24		—		—		24
Depreciation and amortization	—			—		117		165		—		282
Total operating expenses	1			3		738		535		(28	)	1,249
OPERATING (LOSS) INCOME	(1		)	(3	)	26		136		—		158
OTHER (EXPENSE) INCOME
Interest income	—			—		1		—		—		1
Interest income (expense) affiliates, net	262			368		(578	)	(41	)	—		11
Interest expense	(5		)	(72	)	—		(3	)	—		(80	)
Equity in net (losses) earnings of subsidiaries	(827		)	(15	)	71		—		771		—
Other income	1			—		2		—		—		3
Total other (expense) income, net	(569		)	281		(504	)	(44	)	771		(65	)
(LOSS) INCOME BEFORE INCOME TAX (EXPENSE) BENEFIT	(570		)	278		(478	)	92		771		93
Income tax benefit (expense)	429			(1,105	)	433		9		—		(234	)
NET (LOSS) INCOME	(141		)	(827	)	(45	)	101		771		(141	)
Other comprehensive income, net of income taxes	18			—		—		18		(18	)	18
COMPREHENSIVE (LOSS) INCOME	$	(123	)	(827	)	(45	)	119		753		(123	)

	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	$	—		—		3,108		3,891		(129	)	6,870
Total operating revenue	—			—		3,108		3,891		(129	)	6,870
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		1,942		1,680		(129	)	3,493
Selling, general and administrative	4			3		942		259		—		1,208
Depreciation and amortization	—			—		356		662		—		1,018
Total operating expenses	4			3		3,240		2,601		(129	)	5,719
OPERATING (LOSS) INCOME	(4		)	(3	)	(132	)	1,290		—		1,151
OTHER INCOME (EXPENSE)
Interest income	—			—		12		1		—		13
Interest income (expense) - affiliates, net	1,260			1,890		(2,896	)	(254	)	—		—
Interest expense	(30		)	(397	)	(2	)	(12	)	—		(441	)
Loss on modification and extinguishment of debt	—			(44	)	—		—		—		(44	)
Equity in net (losses) earnings of subsidiaries	(815		)	(2,138	)	692		—		2,261		—
Other (expense) income, net	3			—		15		(4	)	—		14
Total other income (expense), net	418			(689	)	(2,179	)	(269	)	2,261		(458	)
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)	414			(692	)	(2,311	)	1,021		2,261		693
Income tax benefit (expense)	11			(123	)	(2	)	(154	)	—		(268	)
NET INCOME (LOSS)	425			(815	)	(2,313	)	867		2,261		425
Other comprehensive income, net of income taxes	80			—		—		—		—		80
COMPREHENSIVE INCOME (LOSS)	$	505		(815	)	(2,313	)	867		2,261		505

Schedule of condensed consolidating balance sheets

	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	—	231	82	—		316
Restricted cash - current	—		—	—	3	—		3
Accounts receivable	—		—	44	623	—		667
Advances to affiliates	19,302		24,293	7,634	2,830	(54,059	)	—
Note receivable - affiliate	1,590		—	—	—	—		1,590
Other	1		—	105	160	—		266
Total current assets	20,896		24,293	8,014	3,698	(54,059	)	2,842
NET PROPERTY, PLANT AND EQUIPMENT	—		—	3,688	6,248	—		9,936
GOODWILL AND OTHER ASSETS
Goodwill	—		—	252	7,163	—		7,415
Operating lease assets	—		—	1,210	324	(474	)	1,060
Restricted cash	12		—	5	2	—		19
Customer relationships, net	—		—	3,383	3,482	—		6,865
Other intangible assets, net	—		—	447	22	—		469
Investment in subsidiaries	8,432		10,564	4,431	—	(23,427	)	—
Other, net	272		1,485	88	201	(1,554	)	492
Total goodwill and other assets	8,716		12,049	9,816	11,194	(25,455	)	16,320
TOTAL ASSETS	$	29,612	36,342	21,518	21,140	(79,514	)	29,098
LIABILITIES AND MEMBER'S EQUITY (DEFICIT)
CURRENT LIABILITIES
Current maturities of long-term debt	—		—	3	8	—		11
Accounts payable	—		15	350	289	—		654
Accounts payable - affiliates	80		17	569	3	—		669
Accrued expenses and other liabilities
Salaries and benefits	—		—	192	48	—		240
Income and other taxes	—		7	95	50	—		152
Current operating lease liabilities	—		—	254	89	(94	)	249
Interest	—		81	1	3	—		85
Other	1		1	22	53	—		77
Advance billings and customer deposits	—		—	169	140	—		309

Due to affiliates	—		—	50,865		3,194	(54,059	)	—
Total current liabilities	81		121	52,520		3,877	(54,153	)	2,446
LONG-TERM DEBT	—		10,196	15		145	—		10,356
DEFERRED REVENUE AND OTHER LIABILITES
Deferred revenue	—		—	1,137		206	—		1,343
Deferred tax liability	56		—	739		1,000	(1,554	)	241
Noncurrent operating lease liabilities	—		—	986		248	(380	)	854
Other	1		—	154		158	—		313
Total deferred revenue and other liabilities	57		—	3,016		1,612	(1,934	)	2,751
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	29,474		26,025	(34,033	)	15,506	(23,427	)	13,545
TOTAL LIABILITIES AND MEMBER'S EQUITY (DEFICIT)	$	29,612	36,342	21,518		21,140	(79,514	)	29,098

	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 - current	—		—	—	4	—		4
Accounts receivable	—		—	70	642	—		712
Advances to affiliates	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
NET PROPERTY, PLANT AND EQUIPMENT	—		—	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 (DEFICIT)
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
Other	3		1	8		66	—		78
Current portion of deferred revenue	—		—	168		142	—		310
Due to affiliates	—		—	45,347		5,913	(51,260	)	—
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 LIABILITES
Deferred revenue	—		—	971		210	—		1,181
Deferred tax liability	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
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	33,766		33,134	(27,256	)	15,550	(37,317	)	17,877
TOTAL LIABILITIES AND MEMBER'S EQUITY (DEFICIT)	$	34,511	43,296	21,088		23,305	(89,909	)	32,291

Schedule of condensed consolidating statements of cash flows

	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	$	313		(151		)	1,952		569		—		2,683
INVESTING ACTIVITIES
Capital expenditures	—			—			(782	)	(559	)	—		(1,341	)
Proceeds from the sale of property, plant and equipment and other assets	50			—			(23	)	1		—		28
Note receivable - affiliate	235			—			—		—		—		235
Net cash provided by (used in) investing activities	285			—			(805	)	(558	)	—		(1,078	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			2,479			—		—		—		2,479
Payments of long-term debt	(600		)	(2,300		)	—		(6	)	—		(2,906	)
Distributions	(1,084		)	—			—		—		—		(1,084	)
Increase (decrease) due to from affiliates, net	1,084			—			(1,084	)	—		—		—
Other	—			(28		)	—		—		—		(28	)
Net cash used in financing activities	(600		)	151			(1,084	)	(6	)	—		(1,539	)
Net decrease in cash, cash equivalents and restricted cash and securities	(2		)	—			63		5		—		66
Cash, cash equivalents and restricted cash and securities at beginning of period	17			—			173		82		—		272
Cash, cash equivalents and restricted cash and securities at end of period	$	15		$	—		236		87		$	—	338

	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	$	(98	)	—	2,059		436		—	2,397
INVESTING ACTIVITIES
Capital expenditures	—			—	(527	)	(511	)	—	(1,038	)
Proceeds from the sale of property, plant and equipment and other assets	83			—	—		51		—	134
Net cash provided by (used in) investing activities	83			—	(527	)	(460	)	—	(904	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(7	)	—	(7	)
Distributions	(1,545		)	—	—		—		—	(1,545	)
Increase (decrease) due to from affiliates, net	1,545			—	(1,545	)	—		—	—
Net cash used in financing activities	—			—	(1,545	)	(7	)	—	(1,552	)
Net decrease in cash, cash equivalents and restricted cash and securities	(15		)	—	(13	)	(31	)	—	(59	)
Cash, cash equivalents and restricted cash and securities at beginning of period	32			—	186		113		—	331
Cash, cash equivalents and restricted cash and securities at end of period	$	17		—	173		82		—	272

	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	$	(1	)	—	172		137		—	308
INVESTING ACTIVITIES
Capital expenditures	—			—	(110	)	(97	)	—	(207	)
Note receivable - affiliate	—			—	(1,825	)	—		—	(1,825	)
Net cash used in investing activities	—			—	(1,935	)	(97	)	—	(2,032	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(1	)	—	(1	)
Distributions	(250		)	—	—		—		—	(250	)
Increase (decrease) due from/to affiliates, net	250			—	(250	)	—		—	—
Other	—			—	—		(2	)	—	(2	)
Net cash used in financing activities	—			—	(250	)	(3	)	—	(253	)
Net increase (decrease) in cash, cash equivalents, and restricted cash and securities	(1		)	—	(2,013	)	37		—	(1,977	)
Cash, cash equivalents and restricted cash and securities at beginning of period	33			—	2,199		76		—	2,308
Cash, cash equivalents and restricted cash and securities at end of period	$	32		—	186		113		—	331

	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	$	(61	)	(401	)	1,615		761		—	1,914
INVESTING ACTIVITIES
Capital expenditures	—			—		(667	)	(452	)	—	(1,119	)
Purchase of marketable securities	—			—		(1,127	)	—		—	(1,127	)
Maturity of marketable securities	—			—		1,127		—		—	1,127
Proceeds from sale of property, plant and equipment and other assets	—			—		1		—		—	1
Net cash used in investing activities	—			—		(666	)	(452	)	—	(1,118	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			4,569		—		—		—	4,569
Payments of long-term debt	—			(4,911	)	1		(7	)	—	(4,917	)
Increase (decrease) due from/to affiliates, net	57			743		(460	)	(340	)	—	—
Other	—			—		—		3		—	3
Net cash provided by (used in) financing activities	57			401		(459	)	(344	)	—	(345	)
Net (decrease) increase in cash, cash equivalents, and restricted cash and securities	(4		)	—		490		(35	)	—	451
Cash, cash equivalents and restricted cash and securities at beginning of period	37			—		1,710		110		—	1,857
Cash, cash equivalents and restricted cash and securities at end of period	$	33		—		2,200		75		—	2,308