Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'LEVEL 3 COMMUNICATIONS INC | ' |
Entity Central Index Key | '0000794323 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 223,605,574 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | $1,569 | $1,590 | $4,711 | $4,762 |
Costs and Expenses Exclusive of Depreciation and Amortization shown separately below: | ' | ' | ' | ' |
Cost of Revenue | 608 | 642 | 1,853 | 1,947 |
Depreciation and Amortization | 203 | 185 | 596 | 563 |
Selling, General and Administrative | 606 | 625 | 1,815 | 1,865 |
Total Costs and Expenses | 1,417 | 1,452 | 4,264 | 4,375 |
Operating Income | 152 | 138 | 447 | 387 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | 0 | 0 | 0 | 2 |
Interest expense | -165 | -188 | -501 | -558 |
Loss on modification and extinguishment of debt, net | -17 | -49 | -17 | -110 |
Other, net | 23 | -54 | -13 | -52 |
Total Other Expense | -159 | -291 | -531 | -718 |
Loss Before Income Taxes | -7 | -153 | -84 | -331 |
Income Tax Expense | -14 | -13 | -39 | -35 |
Net Loss | ($21) | ($166) | ($123) | ($366) |
Net Loss per Share (Basic and Diluted) | ($0.09) | ($0.76) | ($0.56) | ($1.71) |
Shares Used to Compute Basic and Diluted Net Loss per Share (in thousands) | 222,679 | 217,301 | 221,198 | 214,498 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Loss | ($21) | ($166) | ($123) | ($366) |
Other Comprehensive Income (Loss) Before Income Taxes: | ' | ' | ' | ' |
Foreign Currency Translation Adjustment | 41 | 48 | -15 | 16 |
Holding Gain on Interest Rate Swaps | 0 | 74 | 0 | 90 |
Other, net | 1 | 0 | -6 | 2 |
Other Comprehensive Income (Loss), Before Income Taxes | 42 | 122 | -21 | 108 |
Income Tax Related to Items of Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Income Taxes | 42 | 122 | -21 | 108 |
Comprehensive Income (Loss) | $21 | ($44) | ($144) | ($258) |
Supplementary_Stockholders_Equ
Supplementary Stockholders' Equity Information, Changes in Accumulated Other Comprehensive Income (Loss) (USD $) | Total | Net Foreign Currency Translation Adjustment | Defined Benefit Pension Plans |
In Millions, unless otherwise specified | |||
Balance at Dec. 31, 2012 | $26 | $56 | ($30) |
Change In Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Other comprehensive loss before reclassifications | -53 | -44 | -9 |
Amounts reclassified from accumulated other comprehensive loss | 1 | 0 | 1 |
Balance at Mar. 31, 2013 | -26 | 12 | -38 |
Change In Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Other comprehensive loss before reclassifications | -12 | -12 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 1 | 0 | 1 |
Balance at Jun. 30, 2013 | -37 | 0 | -37 |
Change In Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Other comprehensive loss before reclassifications | 41 | 41 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 1 | 0 | 1 |
Balance at Sep. 30, 2013 | $5 | $41 | ($36) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $507 | $979 |
Restricted cash and securities | 7 | 8 |
Receivables, less allowances for doubtful accounts of $33 and $31, respectively | 738 | 714 |
Other | 187 | 141 |
Total Current Assets | 1,439 | 1,842 |
Property, Plant and Equipment, net of accumulated depreciation of $8,894 and $8,359, respectively | 8,230 | 8,199 |
Restricted Cash and Securities | 23 | 35 |
Goodwill | 2,567 | 2,565 |
Other Intangibles, net | 223 | 268 |
Other Assets, net | 370 | 398 |
Total Assets | 12,852 | 13,307 |
Liabilities and Stockholders' Equity: | ' | ' |
Accounts payable | 633 | 779 |
Current portion of long-term debt | 21 | 216 |
Accrued payroll and employee benefits | 212 | 211 |
Accrued interest | 170 | 209 |
Current portion of deferred revenue | 219 | 251 |
Other | 175 | 136 |
Total Current Liabilities | 1,430 | 1,802 |
Long-Term Debt, less current portion | 8,537 | 8,516 |
Deferred Revenue, less current portion | 896 | 887 |
Other Liabilities | 842 | 931 |
Total Liabilities | 11,705 | 12,136 |
Commitments and Contingencies | 0 | 0 |
Stockholdersb Equity: | ' | ' |
Preferred stock, $.01 par value, authorized 10,000,000 shares: no shares issued or outstanding | 0 | 0 |
Common stock, $.01 par value, authorized 343,333,333 shares in both periods; 222,838,992 issued and outstanding at September 30, 2013 and 218,380,070 issued and outstanding at December 31, 2012 | 2 | 2 |
Additional paid-in capital | 14,120 | 14,000 |
Accumulated other comprehensive income | 5 | 26 |
Accumulated deficit | -12,980 | -12,857 |
Total Stockholdersb Equity | 1,147 | 1,171 |
Total Liabilities and Stockholdersb Equity | $12,852 | $13,307 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $33 | $31 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $8,894 | $8,359 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 343,333,333 | 343,333,333 |
Common stock, shares issued | 222,838,992 | 218,380,070 |
Common stock, shares outstanding | 222,838,992 | 218,380,070 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net Loss | ($123) | ($366) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 596 | 563 |
Non-cash compensation expense attributable to stock awards | 115 | 102 |
Loss on modification and extinguishment of debt, net | 17 | 110 |
Loss on interest rate swaps | 0 | 60 |
Accretion of debt discount and amortization of debt issuance costs | 27 | 33 |
Accrued interest on long-term debt, net | -39 | -47 |
Deferred income taxes | 0 | 18 |
Gain on sale of property, plant and equipment and other assets | -1 | 0 |
Other, net | -34 | -16 |
Changes in working capital items: | ' | ' |
Receivables | -34 | -120 |
Other current assets | -34 | -28 |
Payables | -152 | -42 |
Deferred revenue | -18 | -45 |
Other current liabilities | 7 | -44 |
Net Cash Provided by Operating Activities | 327 | 178 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -571 | -545 |
Decrease in restricted cash and securities, net | 13 | 15 |
Proceeds from the sale of property, plant and equipment and other assets | 16 | 5 |
Other | -14 | -13 |
Net Cash Used in Investing Activities | -556 | -538 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 590 | 3,317 |
Payments on and repurchases of long-term debt, including current portion and refinancing costs | -810 | -3,088 |
Proceeds from stock options exercised | 0 | 5 |
Net Cash Provided by (Used in) Financing Activities | -220 | 234 |
Effect of Exchange Rates on Cash and Cash Equivalents | -23 | 1 |
Net Change in Cash and Cash Equivalents | -472 | -125 |
Cash and Cash Equivalents at Beginning of Period | 979 | 918 |
Cash and Cash Equivalents at End of Period | 507 | 793 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Cash interest paid | 513 | 572 |
Income taxes paid, net of refunds | 24 | 25 |
Non-cash Financing Activities: | ' | ' |
Capital lease obligations incurred | 13 | 0 |
Note issued for property | 12 | 0 |
Long-term debt conversion into equity | 0 | 100 |
Premium on long-term debt conversion into equity | 0 | 39 |
Accrued interest conversion into equity | $0 | $2 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Summary of Significant Accounting Policies | ' |
Organization and Summary of Significant Accounting Policies | |
Description of Business | |
Level 3 Communications, Inc. and subsidiaries (the "Company" or "Level 3") is a facilities-based provider (that is, a provider that owns or leases a substantial portion of the plant, property and equipment necessary to provide its services) of a broad range of integrated communications services. The Company created its communications network by constructing its own assets and through a combination of purchasing other companies and purchasing or leasing facilities from others. Level 3's network is an international, facilities-based communications network. The Company designed its network to provide communications services that employ and take advantage of rapidly improving underlying optical, Internet Protocol, computing and storage technologies. | |
Principles of Consolidation and Basis of Presentation | |
The consolidated financial statements include the accounts of Level 3 Communications, Inc. and subsidiaries in which it has a controlling interest. All significant intercompany accounts and transactions have been eliminated. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). | |
As part of its consolidation policy, the Company considers its controlled subsidiaries, investments in businesses in which the Company is not the primary beneficiary or does not have effective control but has the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give the Company rights to economic risks or rewards of a legal entity. The Company does not have variable interests in a variable interest entity. | |
The accompanying consolidated balance sheet as of December 31, 2012, which was derived from audited consolidated financial statements, and the unaudited interim consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for complete financial statements. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2012. In the opinion of the Company’s management, these financial statements contain all adjustments necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the interim periods presented herein. The results of operations for an interim period are not necessarily indicative of the results of operations expected for a full fiscal year. | |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates under different assumptions or conditions and such differences could be material. | |
Reclassifications | |
Certain amounts in the prior period consolidated financial statements and accompanying footnotes have been reclassified to conform to the current year's presentation. | |
Goodwill and Acquired Indefinite-Lived Intangible Assets | |
Accounting guidance prohibits the amortization of goodwill and purchased intangible assets with indefinite useful lives. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. | |
In the second quarter of 2013, the Company changed the date of its annual assessment of goodwill impairment from December 31 to October 1. This was a change in method of applying an accounting principle which management believes is a preferable alternative as the new date of the assessment provides additional time prior to the Company’s year-end to complete the goodwill impairment testing and report the results in the Company's Annual Report on Form 10-K, and is more closely aligned with the Company’s strategic planning process. The change in the assessment date does not delay, accelerate or avoid a potential impairment charge. | |
For a more detailed description of the Company's goodwill impairment assessment process, please see Note 1 of the Company's Form 10-K for the year ended December 31, 2012, filed with the SEC. | |
Recently Issued Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The guidance in this ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. Public companies are required to comply with the requirements of this ASU for all reporting periods (interim and annual) beginning after December 15, 2012. The Company adopted this amendment in the first quarter of 2013. The impact of its adoption was limited to disclosure requirements. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under current GAAP, there is no explicit guidance on the presentation of unrecognized tax benefits when such carryforwards exist, which has led to diversity in practice. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss ("NOL") carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. The ASU is effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. |
Loss_Per_Share_Notes
Loss Per Share (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Loss Per Share | ' |
Loss Per Share | |
The Company computes basic net loss per share by dividing net loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock outstanding during the period and including the dilutive effect of common stock that would be issued assuming conversion or exercise of outstanding convertible notes and stock-based compensation awards. | |
The effect of approximately 28 million and 35 million shares issuable pursuant to the various series of convertible notes outstanding at September 30, 2013 and September 30, 2012, respectively, have not been included in the computation of diluted loss per share because their inclusion would have been anti-dilutive to the computation. In addition, the effect of the approximately 6 million and 7 million stock options, outperform stock appreciation rights ("OSOs"), restricted stock units ("RSUs") and warrants outstanding at September 30, 2013 and September 30, 2012, respectively, have not been included in the computation of diluted loss per share because their inclusion would have been anti-dilutive to the computation. |
Acquired_Intangible_Assets_Not
Acquired Intangible Assets (Notes) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Acquired Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Acquired Intangible Assets | ' | |||||||||||
Acquired Intangible Assets | ||||||||||||
Identifiable acquisition-related intangible assets as of September 30, 2013 and December 31, 2012, were as follows (dollars in millions): | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | |||||||||||
Amount | ||||||||||||
September 30, 2013 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 786 | $ | (666 | ) | $ | 120 | |||||
Trademarks | 55 | (28 | ) | 27 | ||||||||
Patents and Developed Technology | 158 | (114 | ) | 44 | ||||||||
999 | (808 | ) | 191 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,031 | $ | (808 | ) | $ | 223 | ||||||
31-Dec-12 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 776 | $ | (633 | ) | $ | 143 | |||||
Trademarks | 55 | (17 | ) | 38 | ||||||||
Patents and Developed Technology | 158 | (103 | ) | 55 | ||||||||
989 | (753 | ) | 236 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,021 | $ | (753 | ) | $ | 268 | ||||||
Acquired finite-lived intangible asset amortization expense was $18 million and $54 million for the three and nine months ended September 30, 2013 and $21 million and $71 million for the three and nine months ended September 30, 2012. | ||||||||||||
At September 30, 2013, the weighted average remaining useful lives of the Company's acquired finite-lived intangible assets was 2.5 years for customer contracts and relationships, 2 years for trademarks and 3.3 years for patents and developed technology. | ||||||||||||
As of September 30, 2013, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years and thereafter is as follows (dollars in millions): | ||||||||||||
2013 (remaining three months) | $ | 18 | ||||||||||
2014 | 64 | |||||||||||
2015 | 48 | |||||||||||
2016 | 31 | |||||||||||
2017 | 14 | |||||||||||
2018 | 13 | |||||||||||
Thereafter | 3 | |||||||||||
$ | 191 | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (Notes) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
The Company’s financial instruments consist of cash and cash equivalents, restricted cash and securities, accounts receivable, accounts payable, capital leases, other liabilities, interest rate swaps and long-term debt (including the current portion). The carrying values of cash and cash equivalents, restricted cash and securities, accounts receivable, accounts payable, capital leases and other liabilities approximated their fair values at September 30, 2013 and December 31, 2012. The interest rate swaps are recorded in the consolidated balance sheets at fair value (see Note 5 - Derivative Financial Instruments). | |||||||||||||||||||||||||
GAAP defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements and disclosures for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as interest and foreign exchange rates, transfer restrictions, and risk of non-performance. | |||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||
GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value measurement of each class of assets and liabilities is dependent upon its categorization within the fair value hierarchy, based upon the lowest level of input that is significant to the fair value measurement of each class of asset and liability. GAAP establishes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||||||
Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||
Level 2— Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. | |||||||||||||||||||||||||
Level 3— Unobservable inputs for the asset or liability. | |||||||||||||||||||||||||
The table below presents the fair values for the Company’s interest rate swaps and long-term debt as well as the input levels used to determine these fair values as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||
Total Carrying Value in Consolidated Balance Sheets | Unadjusted Quoted Prices in Active | Significant Other Observable Inputs (Level 2) | |||||||||||||||||||||||
Markets for Identical Assets or Liabilities (Level 1) | |||||||||||||||||||||||||
(dollars in millions) | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Liabilities Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Interest Rate Swap Liabilities (included in other current and non-current liabilities) | $ | 23 | $ | 56 | $ | — | $ | — | $ | 23 | $ | 56 | |||||||||||||
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | $ | 23 | $ | 56 | $ | — | $ | — | $ | 23 | $ | 56 | |||||||||||||
Liabilities Not Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Long-term Debt, including the current portion: | |||||||||||||||||||||||||
Term Loans | $ | 2,604 | $ | 2,603 | $ | 2,607 | $ | 2,631 | $ | — | $ | — | |||||||||||||
Senior Notes | 5,188 | 5,185 | 5,609 | 5,712 | — | — | |||||||||||||||||||
Convertible Notes | 675 | 846 | 304 | 286 | 581 | 748 | |||||||||||||||||||
Capital Leases and Other | 91 | 98 | — | — | 91 | 98 | |||||||||||||||||||
Total Long-term Debt, including the current portion: | $ | 8,558 | $ | 8,732 | $ | 8,520 | $ | 8,629 | $ | 672 | $ | 846 | |||||||||||||
The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
The fair value of interest rate swaps is estimated using discounted cash flow techniques that use observable market inputs, such as LIBOR-based forward yield curves, forward rates, non-performance risk adjustment and the specific swap rate stated in each of the swap agreements. | |||||||||||||||||||||||||
Term Loans | |||||||||||||||||||||||||
The fair value of the Term Loans referenced above was approximately $2.6 billion at both September 30, 2013 and December 31, 2012. The fair value of each loan is based on quoted prices for identical terms and maturities. Each loan tranche is actively traded. | |||||||||||||||||||||||||
The Term Loans are secured by a pledge of the equity interests in certain U.S.-based subsidiaries of Level 3 Financing, Inc.; 65% of the equity interests in each of Level 3 Financing, Inc.’s Canadian subsidiary and its Bermuda subsidiary that indirectly owns Global Crossing's non-U.S. subsidiaries; and liens on the assets of Level 3 Communications, Inc. and certain U.S.-based subsidiaries of Level 3 Financing, Inc. In addition, Level 3 Communications, Inc. and certain U.S.-based subsidiaries of Level 3 Financing, Inc. have provided full and unconditional guarantees of the obligations under the Term Loans. | |||||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||
The fair value of the Senior Notes referenced above was approximately $5.6 billion and $5.7 billion at September 30, 2013 and December 31, 2012, respectively, based on quoted prices for identical terms and maturities. Each series of notes is actively traded. | |||||||||||||||||||||||||
The 11.875% Senior Notes due 2019 and the 8.875% Senior Notes due 2019 were issued by Level 3 Communications, Inc. and are not guaranteed by any of the Company's subsidiaries. The remaining Senior Notes are obligations of Level 3 Financing, Inc. and are all fully and unconditionally guaranteed by Level 3 Communications, Inc. and by Level 3 Communications, LLC. | |||||||||||||||||||||||||
Convertible Notes | |||||||||||||||||||||||||
The fair value of the Company’s actively traded 6.5% Convertible Senior Notes due 2016 was approximately $304 million and $286 million at September 30, 2013 and December 31, 2012, respectively. The fair value of the Company’s actively traded Convertible Notes referenced above is based on the trading quotes for identical notes. The fair value of the Company’s Convertible Notes that are not actively traded, which includes the 7% Convertible Senior Notes due 2015, the 7% Convertible Senior Notes due 2015, Series B, and the 15% Convertible Senior Notes due 2013 that were repaid in full at maturity during the quarter ended March 31, 2013, was approximately $581 million and $748 million at September 30, 2013 and December 31, 2012, respectively. The estimated fair value of the Convertible Notes that are not actively traded is based on a Black-Scholes valuation model and an income approach using discounted cash flows. The most significant inputs affecting the valuation are the pricing quotes provided by market participants that incorporate spreads to the Treasury curve, security coupon (ranging from 7% to 15%), convertible optionality, corporate and security credit ratings, maturity date (ranging from 2013 to 2015), liquidity, and other equity option inputs, such as the risk-free rate, underlying stock price, strike price of the embedded derivative, estimated volatility and maturity inputs for the option component and for the bond component, among other security characteristics and relative value at both the borrower entity level and across other securities with similar terms. The fair value of each instrument is obtained by adding together the value derived by discounting the security’s coupon or interest payment using a risk-adjusted discount rate and the value calculated from the embedded equity option based on the estimated volatility of the Company’s stock price, conversion rate of the particular Convertible Note, remaining time to maturity, and risk-free rate. The Convertible Notes are unsecured obligations of Level 3 Communications, Inc. No subsidiary of Level 3 Communications, Inc. has provided a guarantee of the Convertible Notes. |
Derivative_Financial_Instrumen
Derivative Financial Instruments (Notes) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Derivative Financial Instruments | |||||||||||||
The Company has floating rate long-term debt (see Note 6 - Long-Term Debt). Such debt exposes the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense also generally decreases. The Company uses interest rate swaps in an attempt to manage its exposure to fluctuations in interest rate movements. The Company’s primary objective in managing interest rate risk is to decrease the volatility of its earnings and cash flows affected by changes in the underlying rates. The Company does not use derivative financial instruments for speculative purposes. | |||||||||||||
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 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 | Notional | |||||||||||
Instruments | (dollars in millions) | ||||||||||||
Interest rate swaps | Two | $ | 1,000 | ||||||||||
On a quarterly basis through August 6, 2012, the Company evaluated the effectiveness of the hedges by measuring the extent to which the change in the variable portion of the interest rate swaps offset the changes in interest expense paid due to fluctuations in the LIBOR-based interest rate. Prior to August 6, 2012, these derivatives were deemed effective cash flow hedges and hedge ineffectiveness was not material in any periods presented. As a result, the change in the fair value of the interest rate swap agreements was reflected in Accumulated Other Comprehensive Income (Loss) ("AOCI") and was subsequently reclassified into earnings through an interest expense yield adjustment, as interest expense on the hedged debt obligation was incurred. | |||||||||||||
As a result of the refinancing of the Tranche A Term Loan on August 6, 2012, the two interest rate swap agreements maturing in early 2014 that had effectively hedged changes in the interest rate on a portion of the Tranche A Term Loan were deemed "ineffective" under GAAP and cash flow hedge accounting was discontinued. The Company recognized a non-cash loss on these agreements of approximately $60 million (excluding accrued interest) in the third quarter of 2012, which represented the cumulative loss recorded in AOCI at the date the instruments ceased to qualify as hedges. After August 6, 2012, the Company has recorded the change in the fair value of the swaps in Other, net in its Consolidated Statement of Operations until maturity of the swaps in early 2014. The Company recognized a loss of less than $1 million and $2 million for the three and nine months ended September 30, 2013 and a loss of $3 million for both the three and nine months ended September 30, 2012. | |||||||||||||
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets (dollars in millions): | |||||||||||||
Liability Derivatives | |||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||
Derivatives not designated as | Balance Sheet | Fair | Balance Sheet | Fair | |||||||||
hedging instruments | Location | Value | Location | Value | |||||||||
Interest rate swap agreements | Other current liabilities | $ | 23 | Other non-current liabilities | $ | 56 | |||||||
The amount of net gains (losses) recognized in AOCI, including reclassification gains (losses) consists of the following (dollars in millions): | |||||||||||||
Derivatives designated as hedging instruments | 2013 | 2012 | |||||||||||
Cash flow hedging contracts | |||||||||||||
Three Months Ended September 30, | $ | — | $ | 74 | |||||||||
Nine Months Ended September 30, | $ | — | $ | 90 | |||||||||
The amount of gains (losses) reclassified from AOCI to earnings (effective portions) consists of the following (dollars in millions): | |||||||||||||
Derivatives designated as hedging instruments | Statement of Operations Location | 2013 | 2012 | ||||||||||
Cash flow hedging contracts | |||||||||||||
Three Months Ended September 30, | Interest Expense | $ | — | $ | (4 | ) | |||||||
Nine Months Ended September 30, | Interest Expense | $ | — | $ | (26 | ) | |||||||
The Company is exposed to credit related losses in the event of non-performance by counterparties. The counterparties to the financial derivatives the Company has entered into are major institutions with investment grade credit ratings. The Company evaluates counterparty credit risk before entering into any hedge transaction and continues to closely monitor the financial market and the risk that its counterparties will default on their obligations. This credit risk is generally limited to the unrealized gains in such contracts, should any of these counterparties fail to perform as contracted. |
LongTerm_Debt_Notes
Long-Term Debt (Notes) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
Long-Term Debt | |||||||||
As of September 30, 2013 and December 31, 2012, long-term debt was as follows: | |||||||||
(dollars in millions) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Senior Secured Term Loan* | $ | 2,611 | $ | 2,614 | |||||
Floating Rate Senior Notes due 2015 (4.146% as of September 30, 2013 and 4.469% as of December 31, 2012) | 300 | 300 | |||||||
10% Senior Notes due 2018 | 640 | 640 | |||||||
11.875% Senior Notes due 2019 | 605 | 605 | |||||||
9.375% Senior Notes due 2019 | 500 | 500 | |||||||
8.125% Senior Notes due 2019 | 1,200 | 1,200 | |||||||
8.875% Senior Notes due 2019 | 300 | 300 | |||||||
8.625% Senior Notes due 2020 | 900 | 900 | |||||||
7% Senior Notes due 2020 | 775 | 775 | |||||||
15% Convertible Senior Notes due 2013 | — | 172 | |||||||
7% Convertible Senior Notes due 2015 | 200 | 200 | |||||||
7% Convertible Senior Notes due 2015 Series B | 275 | 275 | |||||||
6.5% Convertible Senior Notes due 2016 | 201 | 201 | |||||||
Capital Leases | 78 | 86 | |||||||
Other | 13 | 12 | |||||||
Total Debt Obligations | 8,598 | 8,780 | |||||||
Unamortized Discount: | |||||||||
Discount on Senior Secured Term Loan | (7 | ) | (11 | ) | |||||
Discount on 10% Senior Notes due 2018 | (8 | ) | (10 | ) | |||||
Discount on 11.875% Senior Notes due 2019 | (9 | ) | (9 | ) | |||||
Discount on 9.375% Senior Notes due 2019 | (8 | ) | (8 | ) | |||||
Discount on 8.125% Senior Notes due 2019 | (7 | ) | (8 | ) | |||||
Discount on 7% Convertible Senior Notes due 2015 | (1 | ) | (2 | ) | |||||
Total Unamortized Discount | (40 | ) | (48 | ) | |||||
Carrying Value of Debt | 8,558 | 8,732 | |||||||
Less current portion | (21 | ) | (216 | ) | |||||
Long-term Debt, less current portion | $ | 8,537 | $ | 8,516 | |||||
* The $1.2 billion Tranche B-II 2019 Term Loan due 2019, the $815 million Tranche B-III 2019 Term Loan due 2019 and the $595.5 million Tranche B 2020 Term Loan due 2020 had interest rates of 4.75%, 4.00% and 4.00%, respectively, as of September 30, 2013. The $599 million Tranche B 2016 Term Loan due 2016, the $815 million Tranche B 2019 Term Loan due 2019 and the $1.2 billion Tranche B-II 2019 Term Loan due 2019 had interest rates of 4.75%, 5.25% and 4.75%, respectively, as of December 31, 2012. | |||||||||
2013 Debt Issuances, Redemptions and Registrations | |||||||||
Senior Secured Tranche B 2020 Term Loan due 2020 | |||||||||
On August 16, 2013, Level 3 Financing, Inc. refinanced its existing $595.5 million Tranche B 2016 Term Loan under its existing senior credit facility through the creation of a new term loan in the aggregate principal amount of $595.5 million (the "Tranche B 2020 Term Loan"). The Tranche B 2020 Term Loan was borrowed pursuant to an amended and restated credit agreement. The Tranche B 2020 Term Loan has an interest rate of LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on January 15, 2020. The Tranche B 2020 Term Loan was priced to lenders at par. Debt issuance costs for the Tranche B 2020 Term Loan of approximately $7 million were capitalized and are being amortized as interest expense using the effective interest method over its term. | |||||||||
The $595.5 million Tranche B 2016 Term Loan had an interest rate of LIBOR plus 3.25%, with a minimum LIBOR of 1.50% and matured on August 1, 2016. The Tranche B 2016 Term Loan required repayment of 0.25% of the original $600 million aggregate principal amount on the last day of each March, June, September and December, beginning with December 31, 2012 and ending with such last day to occur prior to maturity. The Company recognized a loss on extinguishment of debt of $8 million as of result of this transaction. | |||||||||
Senior Secured Tranche B-III 2019 Term Loan due 2019 | |||||||||
On August 12, 2013, Level 3 Financing, Inc. refinanced its existing $815 million Tranche B 2019 Term Loan under its existing senior credit facility through the creation of a new term loan in the aggregate principal amount of $815 million (the "Tranche B-III 2019 Term Loan"). The Tranche B-III 2019 Term Loan was borrowed pursuant to an amended and restated credit agreement. The Tranche B-III 2019 Term Loan has an interest rate of LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on August 1, 2019. The Tranche B-III 2019 Term Loan was priced to lenders at par. Debt issuance costs related to the Tranche B 2019 Term Loan of approximately $10 million continue to be amortized as interest expense using the new effective interest rate over its term. | |||||||||
The $815 million Tranche B 2019 Term Loan had an interest rate of LIBOR plus 3.75%, with a minimum LIBOR of 1.50% and matured on August 1, 2019. The Company expensed debt issuance costs of approximately $9 million as of result of this transaction. | |||||||||
Total loss on modification and extinguishment of debt for the three and nine months ended September 30, 2013 was $17 million. | |||||||||
15% Convertible Senior Notes due 2013 | |||||||||
On January 15, 2013, Level 3 Communications, Inc. repaid at maturity approximately $172 million of its 15% Convertible Senior Notes due 2013. | |||||||||
8.875% Senior Notes due 2019 | |||||||||
The 8.875% Senior Notes due 2019 issued by Level 3 Communications, Inc. were not originally registered under the Securities Act of 1933, as amended. During the second quarter of 2013, all of the originally placed notes were exchanged for a new issue of 8.875% Senior Notes due 2019 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
7% Senior Notes due 2020 | |||||||||
The 7% Senior Notes due 2020 issued by Level 3 Financing, Inc. were not originally registered under the Securities Act of 1933, as amended. During the second quarter of 2013, all of the originally placed notes were exchanged for a new issue of 7% Senior Notes due 2020 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. The 7% Senior Notes due 2020 are guaranteed by Level 3 Communications, Inc. and Level 3 Communications, LLC. | |||||||||
Long-Term Debt Maturities | |||||||||
Aggregate future contractual maturities of long-term debt and capital leases (excluding discounts) were as follows as of September 30, 2013 (dollars in millions): | |||||||||
2013 (remaining three months) | $ | 8 | |||||||
2014 | 28 | ||||||||
2015 | 783 | ||||||||
2016 | 208 | ||||||||
2017 | 6 | ||||||||
2018 | 646 | ||||||||
Thereafter | 6,919 | ||||||||
$ | 8,598 | ||||||||
StockBased_Compensation_Notes
Stock-Based Compensation (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement and Compensation Related Costs, Share-based Payments Disclosure [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The following table summarizes non-cash compensation expense and capitalized non-cash compensation for the three and nine months ended September 30, 2013 and 2012 (dollars in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OSO | $ | 2 | $ | 4 | $ | 18 | $ | 10 | ||||||||
Restricted Stock Units and Shares | 10 | 16 | 31 | 29 | ||||||||||||
401(k) Match Expense | 6 | 5 | 19 | 18 | ||||||||||||
Restricted Stock Unit Bonus Grant | 12 | 20 | 41 | 36 | ||||||||||||
Management Incentive and Retention Plan | 1 | 5 | 7 | 10 | ||||||||||||
31 | 50 | 116 | 103 | |||||||||||||
Capitalized Non-Cash Compensation | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||
$ | 30 | $ | 49 | $ | 115 | $ | 102 | |||||||||
The Company capitalizes non-cash compensation for those employees directly involved in the construction of the network, installation of services for customers or the development of business support systems. As of September 30, 2013, there were approximately 2 million OSOs outstanding. As of September 30, 2013, there were approximately 4 million non-vested restricted stock and RSUs outstanding (including those related to the Management Incentive and Retention Plan). In addition, as of September 30, 2013, there were approximately 43 thousand non-qualified stock options outstanding. |
Commitments_Contingencies_and_
Commitments, Contingencies and Other Items (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments, Contingencies and Other Items | ' |
Commitments, Contingencies and Other Items | |
The Company is subject to various legal proceedings and other contingent liabilities that individually or in the aggregate could materially affect its financial condition, future results of operations or cash flows. Amounts accrued for such contingencies aggregate to $248 million and are included in “Other” current liabilities and “Other Liabilities” in the Company's consolidated balance sheet at September 30, 2013. The establishment of an accrual does not mean that actual funds have been set aside to satisfy a given contingency. Thus, the resolution of a particular contingency for the amount accrued may have no effect on the Company's results of operations but could materially adversely affect its cash flows for the affected period. | |
In accordance with the accounting guidance for contingencies, the Company accrues its estimate of a contingent liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Where it is probable that a liability has been incurred and there is a range of expected loss for which no amount in the range is more likely than any other amount, the Company accrues at the low end of the range. The Company reviews its accruals at least quarterly and adjusts them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. | |
Below is a description of material legal proceedings and other contingencies pending at September 30, 2013. Although the Company believes it has accrued for these matters in accordance with the accounting guidance for contingencies, contingencies are inherently unpredictable and it is possible that results of operations or cash flows could be materially and adversely affected in any particular period by unfavorable developments in, or resolution or disposition of, one or more of these matters. For those contingencies in respect of which the Company believes that it is reasonably possible that a loss may result that is materially in excess of the accrual (if any) established for the matter, the Company has either provided an estimate of such possible loss or range of loss or included a statement that such an estimate cannot be made. In addition to the contingencies described below, the Company is party to many other legal proceedings and contingencies the resolution of which is not expected to materially affect its financial condition or future results of operations beyond the amounts accrued. | |
Rights-of-Way Litigation | |
The Company is party to a number of purported class action lawsuits involving its right to install fiber optic cable network in railroad right-of-ways adjacent to plaintiffs' land. In general, the Company obtained the rights to construct its networks from railroads, utilities, and others, and has installed its networks along the rights-of-way so granted. Plaintiffs in the purported class actions assert that they are the owners of lands over which the fiber optic cable networks pass, and that the railroads, utilities, and others who granted the Company the right to construct and maintain its network did not have the legal authority to do so. The complaints seek damages on theories of trespass, unjust enrichment and slander of title and property, as well as punitive damages. The Company has also received, and may in the future receive, claims and demands related to rights-of-way issues similar to the issues in these cases that may be based on similar or different legal theories. The Company has defeated motions for class certification in a number of these actions but expects that, absent settlement of these actions, plaintiffs in the pending lawsuits will continue to seek certification of statewide or multi-state classes. The only lawsuit in which a class was certified against the Company, absent an agreed upon settlement, occurred in Koyle, et. al. v. Level 3 Communications, Inc., et. al., a purported two state class action filed in the United States District Court for the District of Idaho. The Koyle lawsuit has been dismissed pursuant to a settlement reached in November 2010 as described further below. | |
The Company negotiated a series of class settlements affecting all persons who own or owned land next to or near railroad rights of way in which it has installed its fiber optic cable networks. The United States District Court for the District of Massachusetts in Kingsborough v. Sprint Communications Co. L.P. granted preliminary approval of the proposed settlement; however, on September 10, 2009, the court denied a motion for final approval of the settlement on the basis that the court lacked subject matter jurisdiction and dismissed the case. | |
In November 2010, the Company negotiated revised settlement terms for a series of state class settlements affecting all persons who own or owned land next to or near railroad rights of way in which the Company has installed its fiber optic cable networks. The Company is currently pursuing presentment of the settlement in applicable jurisdictions. The settlements, affecting current and former landowners, have received final federal court approval in multiple states and the parties are engaged in the claims process for those states. The settlement has also been presented to federal courts in additional states and approval is pending. | |
Management believes that the Company has substantial defenses to the claims asserted in all of these actions and intends to defend them vigorously if a satisfactory settlement is not ultimately approved for all affected landowners. | |
Peruvian Tax Litigation | |
Beginning in 2005, one of the Company's Peruvian subsidiaries received a number of assessments for tax, penalties and interest for calendar years 2001 and 2002. Peruvian tax authorities ("SUNAT") took the position that the Peruvian subsidiary incorrectly documented its importations resulting in additional income tax withholding and value-added taxes ("VAT"). The total amount of the asserted claims, including potential interest and penalties, was $26 million, consisting of $3 million for income tax withholding in connection with the import of services for calendar years 2001 and 2002, $7 million for VAT in connection with the import of services for calendar years 2001 and 2002, and $16 million in connection with the disallowance of VAT credits for periods beginning in 2005. Due to accrued interest and foreign exchange effects, and taking into account the developments described below, the total amount of exposure has increased to $89 million at September 30, 2013. | |
The Company challenged the tax assessments during 2005 by filing administrative claims before SUNAT. During August 2006 and June 2007, SUNAT rejected the Company's administrative claims, thereby confirming the assessments. Appeals were filed in September 2006 and July 2007 in the Tax Court, which is the highest administrative authority. In October 2011, the Tax Court issued a ruling regarding VAT, associated penalties and penalties associated with withholding taxes, adjudicating the central issue underlying the assessments in the government's favor, while confirming the assessment in part and denying a portion of the assessment on procedural grounds. Other than an immaterial amount, all assessed items dismissed by the Tax Court in this ruling remain open for reassessment by SUNAT. While this Tax Court ruling applies only to 2002, the Company believes the Tax Court will issue a similar ruling with respect to 2001, and all material amounts likely to be waived due to procedural defects similarly remain open for reassessment. | |
In November 2011, the Tax Court issued a ruling with respect to assessed 2001 withholding tax, holding that the statute of limitations had run prior to assessment by SUNAT. The Company believes that this adjudication of the withholding tax issue is likely to be final, and the Company expects to win a similar verdict with respect to assessed 2002 withholding tax. However, penalties with respect to withholding tax are not time-barred, and were confirmed in the Tax Court's October 2011 ruling. | |
The Company has appealed the Tax Court's October 2011 decision to the judicial court in Peru. The Company has not received Tax Court rulings for all periods, but it has received adjudications of each substantive issue for at least one period. As a result, the Company expects decisions for the remaining open periods to be consistent with decisions already rendered. The Company intends to appeal any Tax Court verdict with respect to 2001 to the extent consistent with the October 2011 decision in the government's favor and will protest any reassessment of amounts dismissed by the Tax Court on procedural grounds. | |
Employee Severance and Contractor Termination Disputes | |
A number of former employees and third-party contractors have asserted a variety of claims in litigation against certain Latin American subsidiaries of the Company for separation pay, severance, commissions, pension benefits, unpaid vacation pay, breach of employment contracts, unpaid performance bonuses, property damages, moral damages and related statutory penalties, fines, costs and expenses (including accrued interest, attorneys fees and statutorily mandated inflation adjustments) as a result of their separation from the Company or termination of service relationships. The Company is vigorously defending itself against the asserted claims, which aggregate to approximately $40 million at September 30, 2013. | |
Brazilian Tax Claims | |
In December 2004, March 2009 and April 2009, the São Paulo state tax authorities issued tax assessments against one of the Company's Brazilian subsidiaries for the Tax on Distribution of Goods and Services (“ICMS”) with respect to revenue from leasing movable properties (in the case of the December 2004 and March 2009 assessments) and revenue from the provision of Internet access services (in the case of the April 2009 assessment), by treating such activities as the provision of communications services, to which the ICMS tax applies. In September 2002, July 2009 and May 2012, the Rio de Janeiro state tax authorities issued tax assessments to the same Brazilian subsidiary on similar issues. The Company has filed objections to these assessments, arguing that the lease of assets and the provision of Internet access are not communication services subject to ICMS. The objections to the December 2004 and September 2002 assessments were rejected by the respective state administrative courts, and the Company has appealed those decisions to the judicial courts. In October 2012, the Company received a favorable ruling from the lower court on the December 2004 assessment regarding equipment leasing, but that ruling is subject to appeal by the state. No ruling has been obtained with respect to the September 2002 assessment. The objections to the March, April and July 2009 and May 2012 assessments are still pending final administrative decisions. | |
The Company is vigorously contesting all such assessments in both states, and in particular, views the assessment of ICMS on revenue from leasing movable properties to be without merit. Nevertheless, the Company believes that it is reasonably possible that these assessments could result in a loss of up to $61 million in excess of the accruals established for these matters. | |
Letters of Credit | |
It is customary for Level 3 to use various financial instruments in the normal course of business. These instruments include letters of credit. Letters of credit are conditional commitments issued on behalf of Level 3 in accordance with specified terms and conditions. As of September 30, 2013 and December 31, 2012, Level 3 had outstanding letters of credit or other similar obligations of approximately $28 million and $31 million, respectively, of which $25 million and $29 million are collateralized by cash that is reflected on the consolidated balance sheets as restricted cash. The Company does not believe exposure to loss related to its letters of credit is material. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information (Notes) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
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 September 30, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 711 | $ | 919 | $ | (61 | ) | $ | 1,569 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 264 | 405 | (61 | ) | 608 | |||||||||||||||||
Depreciation and Amortization | — | — | 73 | 130 | — | 203 | ||||||||||||||||||
Selling, General and Administrative | 1 | 1 | 385 | 219 | — | 606 | ||||||||||||||||||
Total Costs and Expenses | 1 | 1 | 722 | 754 | (61 | ) | 1,417 | |||||||||||||||||
Operating Income (Loss) | (1 | ) | (1 | ) | (11 | ) | 165 | — | 152 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (38 | ) | (123 | ) | (1 | ) | (3 | ) | — | (165 | ) | |||||||||||||
Interest income (expense) affiliates, net | 274 | 429 | (670 | ) | (33 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (255 | ) | (542 | ) | 122 | — | 675 | — | ||||||||||||||||
Other, net | — | (18 | ) | 1 | 23 | — | 6 | |||||||||||||||||
Total Other Expense | (19 | ) | (254 | ) | (548 | ) | (13 | ) | 675 | (159 | ) | |||||||||||||
Income (Loss) before Income Taxes | (20 | ) | (255 | ) | (559 | ) | 152 | 675 | (7 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (1 | ) | (12 | ) | — | (14 | ) | ||||||||||||||
Net Income (Loss) | (21 | ) | (255 | ) | (560 | ) | 140 | 675 | (21 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 42 | 42 | — | 42 | (84 | ) | 42 | |||||||||||||||||
Comprehensive Income (Loss) | $ | 21 | $ | (213 | ) | $ | (560 | ) | $ | 182 | $ | 591 | $ | 21 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,090 | $ | 2,803 | $ | (182 | ) | $ | 4,711 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 781 | 1,254 | (182 | ) | 1,853 | |||||||||||||||||
Depreciation and Amortization | — | — | 215 | 381 | — | 596 | ||||||||||||||||||
Selling, General and Administrative | 2 | 1 | 1,178 | 634 | — | 1,815 | ||||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,174 | 2,269 | (182 | ) | 4,264 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (84 | ) | 534 | — | 447 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (114 | ) | (374 | ) | (2 | ) | (11 | ) | — | (501 | ) | |||||||||||||
Interest income (expense) affiliates, net | 819 | 1,284 | (2,008 | ) | (95 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (825 | ) | (1,715 | ) | 398 | — | 2,142 | — | ||||||||||||||||
Other, net | — | (19 | ) | 3 | (14 | ) | — | (30 | ) | |||||||||||||||
Total Other Expense | (120 | ) | (824 | ) | (1,609 | ) | (120 | ) | 2,142 | (531 | ) | |||||||||||||
Income (Loss) before Income Taxes | (122 | ) | (825 | ) | (1,693 | ) | 414 | 2,142 | (84 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (2 | ) | (36 | ) | — | (39 | ) | ||||||||||||||
Net Income (Loss) | (123 | ) | (825 | ) | (1,695 | ) | 378 | 2,142 | (123 | ) | ||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (21 | ) | (21 | ) | — | (21 | ) | 42 | (21 | ) | ||||||||||||||
Comprehensive Income (Loss) | $ | (144 | ) | $ | (846 | ) | $ | (1,695 | ) | $ | 357 | $ | 2,184 | $ | (144 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 672 | $ | 981 | $ | (63 | ) | $ | 1,590 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 256 | 447 | (61 | ) | 642 | |||||||||||||||||
Depreciation and Amortization | — | — | 63 | 122 | — | 185 | ||||||||||||||||||
Selling, General and Administrative | 1 | 1 | 410 | 215 | (2 | ) | 625 | |||||||||||||||||
Total Costs and Expenses | 1 | 1 | 729 | 784 | (63 | ) | 1,452 | |||||||||||||||||
Operating Income (Loss) | (1 | ) | (1 | ) | (57 | ) | 197 | — | 138 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | ||||||||||||||||||
Interest expense | (43 | ) | (137 | ) | (1 | ) | (7 | ) | — | (188 | ) | |||||||||||||
Interest income (expense) affiliates, net | 244 | 400 | (561 | ) | (83 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (365 | ) | (516 | ) | 40 | — | 841 | — | ||||||||||||||||
Other, net | — | (111 | ) | 3 | 5 | — | (103 | ) | ||||||||||||||||
Total Other Expense | (164 | ) | (364 | ) | (519 | ) | (85 | ) | 841 | (291 | ) | |||||||||||||
Income (Loss) before Income Taxes | (165 | ) | (365 | ) | (576 | ) | 112 | 841 | (153 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (1 | ) | (11 | ) | — | (13 | ) | ||||||||||||||
Net Income (Loss) | (166 | ) | (365 | ) | (577 | ) | 101 | 841 | (166 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 122 | 122 | — | 48 | (170 | ) | 122 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (44 | ) | $ | (243 | ) | $ | (577 | ) | $ | 149 | $ | 671 | $ | (44 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,957 | $ | 2,995 | $ | (190 | ) | $ | 4,762 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 736 | 1,393 | (182 | ) | 1,947 | |||||||||||||||||
Depreciation and Amortization | — | — | 196 | 367 | — | 563 | ||||||||||||||||||
Selling, General and Administrative | 2 | 1 | 1,207 | 663 | (8 | ) | 1,865 | |||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,139 | 2,423 | (190 | ) | 4,375 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (182 | ) | 572 | — | 387 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Interest expense | (123 | ) | (410 | ) | (2 | ) | (23 | ) | — | (558 | ) | |||||||||||||
Interest income (expense) affiliates, net | 734 | 1,202 | (1,678 | ) | (258 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (935 | ) | (1,593 | ) | 101 | — | 2,427 | — | ||||||||||||||||
Other, net | (39 | ) | (133 | ) | 6 | 4 | — | (162 | ) | |||||||||||||||
Total Other Expense | (363 | ) | (934 | ) | (1,572 | ) | (276 | ) | 2,427 | (718 | ) | |||||||||||||
Income (Loss) before Income Taxes | (365 | ) | (935 | ) | (1,754 | ) | 296 | 2,427 | (331 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (3 | ) | (31 | ) | — | (35 | ) | ||||||||||||||
Net Income (Loss) | (366 | ) | (935 | ) | (1,757 | ) | 265 | 2,427 | (366 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 108 | 108 | — | 18 | (126 | ) | 108 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (258 | ) | $ | (827 | ) | $ | (1,757 | ) | $ | 283 | $ | 2,301 | $ | (258 | ) | ||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
September 30, 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 | $ | 9 | $ | 6 | $ | 289 | $ | 203 | $ | — | $ | 507 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 107 | 631 | — | 738 | ||||||||||||||||||
Due from affiliates | 15,285 | 16,647 | — | — | (31,932 | ) | — | |||||||||||||||||
Other | 3 | 15 | 64 | 105 | — | 187 | ||||||||||||||||||
Total Current Assets | 15,297 | 16,668 | 461 | 945 | (31,932 | ) | 1,439 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,004 | 5,226 | — | 8,230 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 17 | 3 | — | 23 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 404 | 2,386 | — | 2,790 | ||||||||||||||||||
Investment in Subsidiaries | (12,526 | ) | (22,242 | ) | 3,921 | — | 30,847 | — | ||||||||||||||||
Other Assets, net | 13 | 107 | 11 | 239 | — | 370 | ||||||||||||||||||
Total Assets | $ | 2,787 | $ | (5,467 | ) | $ | 7,818 | $ | 8,799 | $ | (1,085 | ) | $ | 12,852 | ||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 1 | $ | 51 | $ | 581 | $ | — | $ | 633 | ||||||||||||
Current portion of long-term debt | — | — | 2 | 19 | — | 21 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 156 | 56 | — | 212 | ||||||||||||||||||
Accrued interest | 53 | 116 | — | 1 | — | 170 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 104 | 115 | — | 219 | ||||||||||||||||||
Due to affiliates | — | — | 31,511 | 421 | (31,932 | ) | — | |||||||||||||||||
Other | 1 | 24 | 76 | 74 | — | 175 | ||||||||||||||||||
Total Current Liabilities | 54 | 141 | 31,900 | 1,267 | (31,932 | ) | 1,430 | |||||||||||||||||
Long-Term Debt, less current portion | 1,571 | 6,896 | 18 | 52 | — | 8,537 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 584 | 312 | — | 896 | ||||||||||||||||||
Other Liabilities | 15 | 26 | 132 | 669 | — | 842 | ||||||||||||||||||
Commitments and Contingencies | — | — | — | — | — | — | ||||||||||||||||||
Stockholders' Equity (Deficit) | 1,147 | (12,530 | ) | (24,816 | ) | 6,499 | 30,847 | 1,147 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 2,787 | $ | (5,467 | ) | $ | 7,818 | $ | 8,799 | $ | (1,085 | ) | $ | 12,852 | ||||||||||
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 | ||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 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 | $ | (105 | ) | $ | (441 | ) | $ | 298 | $ | 575 | $ | — | $ | 327 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (235 | ) | (336 | ) | — | (571 | ) | |||||||||||||||
Decrease in restricted cash and securities, net | 9 | — | — | 4 | — | 13 | ||||||||||||||||||
Proceeds from the sale of property, plant and equipment and other assets | — | — | — | 16 | — | 16 | ||||||||||||||||||
Other | — | — | — | (14 | ) | — | (14 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 9 | — | (235 | ) | (330 | ) | — | (556 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | 590 | — | — | — | 590 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (172 | ) | (607 | ) | (4 | ) | (27 | ) | — | (810 | ) | |||||||||||||
Increase (decrease) due from/to affiliates, net | 24 | 459 | (156 | ) | (327 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (148 | ) | 442 | (160 | ) | (354 | ) | — | (220 | ) | ||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (23 | ) | — | (23 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (244 | ) | 1 | (97 | ) | (132 | ) | — | (472 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 253 | 5 | 386 | 335 | — | 979 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 9 | $ | 6 | $ | 289 | $ | 203 | $ | — | $ | 507 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 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 | $ | (48 | ) | $ | (442 | ) | $ | 80 | $ | 588 | $ | — | $ | 178 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (199 | ) | (346 | ) | — | (545 | ) | |||||||||||||||
Decrease in restricted cash and securities, net | 3 | — | 1 | 11 | — | 15 | ||||||||||||||||||
Proceeds from sale of property, plant and equipment and other assets | — | — | — | 5 | — | 5 | ||||||||||||||||||
Other | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 3 | — | (198 | ) | (343 | ) | — | (538 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 293 | 3,024 | — | — | — | 3,317 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | (2,960 | ) | — | (128 | ) | — | (3,088 | ) | |||||||||||||||
Proceeds from stock options exercised | 5 | — | — | — | — | 5 | ||||||||||||||||||
Increase (decrease) due from/to affiliates, net | 41 | 377 | (285 | ) | (133 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 339 | 441 | (285 | ) | (261 | ) | — | 234 | ||||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net Change in Cash and Cash Equivalents | 294 | (1 | ) | (403 | ) | (15 | ) | — | (125 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 2 | 6 | 618 | 292 | — | 918 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 296 | $ | 5 | $ | 215 | $ | 277 | $ | — | $ | 793 | ||||||||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On October 4, 2013, Level 3 Financing, Inc. refinanced its existing $1.2 billion Tranche B-II 2019 Term Loan under its existing senior credit facility by increasing the borrowings under the Tranche B 2020 Term Loan by an aggregate principal amount of $1.2 billion. The Tranche B 2020 Term Loan new aggregate principal amount is $1.796 billion. | |
The $1.796 billion Tranche B 2020 Term Loan will continue to bear interest at LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on January 15, 2020. The additional portion of the Tranche B 2020 Term Loan was priced to lenders at par, with the payment to the lenders of an upfront 0.25% fee at closing. The prior Tranche B-II 2019 Term Loan had an interest rate of LIBOR plus 3.25%, with a minimum LIBOR of 1.50% and matured on October 4, 2019. As a result of this transaction, the Company expects to incur a loss on the refinancing of approximately $10 million in the fourth quarter 2013 and additional debt discount costs of $3 million that will be amortized as interest expense using the effective interest method over its term. | |
On October 30, 2013, the Company announced that Level 3 Financing, Inc. has agreed to sell $640 million aggregate principal amount of its 6.125% Senior Notes due 2021 in a private offering to "qualified institutional buyers," as defined in Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States under Regulation S under the Securities Act of 1933. The net proceeds from this offering, together with cash on hand, will be used to redeem or otherwise repay or retire all of Level 3 Financing, Inc.'s outstanding 10% Senior Notes due 2018, including accrued interest and applicable premiums and expenses. The offering is expected to be completed on November 14, 2013, subject to the satisfaction or waiver of customary closing conditions. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation and Basis of Presentation | ' |
Principles of Consolidation and Basis of Presentation | |
The consolidated financial statements include the accounts of Level 3 Communications, Inc. and subsidiaries in which it has a controlling interest. All significant intercompany accounts and transactions have been eliminated. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). | |
As part of its consolidation policy, the Company considers its controlled subsidiaries, investments in businesses in which the Company is not the primary beneficiary or does not have effective control but has the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give the Company rights to economic risks or rewards of a legal entity. The Company does not have variable interests in a variable interest entity. |
Acquired_Intangible_Assets_Tab
Acquired Intangible Assets (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Acquired Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of acquisition-related intangible assets | ' | |||||||||||
Identifiable acquisition-related intangible assets as of September 30, 2013 and December 31, 2012, were as follows (dollars in millions): | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | |||||||||||
Amount | ||||||||||||
September 30, 2013 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 786 | $ | (666 | ) | $ | 120 | |||||
Trademarks | 55 | (28 | ) | 27 | ||||||||
Patents and Developed Technology | 158 | (114 | ) | 44 | ||||||||
999 | (808 | ) | 191 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,031 | $ | (808 | ) | $ | 223 | ||||||
31-Dec-12 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 776 | $ | (633 | ) | $ | 143 | |||||
Trademarks | 55 | (17 | ) | 38 | ||||||||
Patents and Developed Technology | 158 | (103 | ) | 55 | ||||||||
989 | (753 | ) | 236 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,021 | $ | (753 | ) | $ | 268 | ||||||
Schedule of estimated amortization expense of finite-lived acquisition-related intangible assets | ' | |||||||||||
As of September 30, 2013, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years and thereafter is as follows (dollars in millions): | ||||||||||||
2013 (remaining three months) | $ | 18 | ||||||||||
2014 | 64 | |||||||||||
2015 | 48 | |||||||||||
2016 | 31 | |||||||||||
2017 | 14 | |||||||||||
2018 | 13 | |||||||||||
Thereafter | 3 | |||||||||||
$ | 191 | |||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Schedule of fair value of liabilities measured on a recurring basis | ' | ||||||||||||||||||||||||
The table below presents the fair values for the Company’s interest rate swaps and long-term debt as well as the input levels used to determine these fair values as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||
Total Carrying Value in Consolidated Balance Sheets | Unadjusted Quoted Prices in Active | Significant Other Observable Inputs (Level 2) | |||||||||||||||||||||||
Markets for Identical Assets or Liabilities (Level 1) | |||||||||||||||||||||||||
(dollars in millions) | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Liabilities Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Interest Rate Swap Liabilities (included in other current and non-current liabilities) | $ | 23 | $ | 56 | $ | — | $ | — | $ | 23 | $ | 56 | |||||||||||||
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | $ | 23 | $ | 56 | $ | — | $ | — | $ | 23 | $ | 56 | |||||||||||||
Liabilities Not Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Long-term Debt, including the current portion: | |||||||||||||||||||||||||
Term Loans | $ | 2,604 | $ | 2,603 | $ | 2,607 | $ | 2,631 | $ | — | $ | — | |||||||||||||
Senior Notes | 5,188 | 5,185 | 5,609 | 5,712 | — | — | |||||||||||||||||||
Convertible Notes | 675 | 846 | 304 | 286 | 581 | 748 | |||||||||||||||||||
Capital Leases and Other | 91 | 98 | — | — | 91 | 98 | |||||||||||||||||||
Total Long-term Debt, including the current portion: | $ | 8,558 | $ | 8,732 | $ | 8,520 | $ | 8,629 | $ | 672 | $ | 846 | |||||||||||||
The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3). |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
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 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 | Notional | |||||||||||
Instruments | (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 (dollars in millions): | |||||||||||||
Liability Derivatives | |||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||
Derivatives not designated as | Balance Sheet | Fair | Balance Sheet | Fair | |||||||||
hedging instruments | Location | Value | Location | Value | |||||||||
Interest rate swap agreements | Other current liabilities | $ | 23 | Other non-current liabilities | $ | 56 | |||||||
Schedule of the amount of net gains (losses) recognized in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The amount of net gains (losses) recognized in AOCI, including reclassification gains (losses) consists of the following (dollars in millions): | |||||||||||||
Derivatives designated as hedging instruments | 2013 | 2012 | |||||||||||
Cash flow hedging contracts | |||||||||||||
Three Months Ended September 30, | $ | — | $ | 74 | |||||||||
Nine Months Ended September 30, | $ | — | $ | 90 | |||||||||
Schedule of the amount of gains (losses) reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense | ' | ||||||||||||
The amount of gains (losses) reclassified from AOCI to earnings (effective portions) consists of the following (dollars in millions): | |||||||||||||
Derivatives designated as hedging instruments | Statement of Operations Location | 2013 | 2012 | ||||||||||
Cash flow hedging contracts | |||||||||||||
Three Months Ended September 30, | Interest Expense | $ | — | $ | (4 | ) | |||||||
Nine Months Ended September 30, | Interest Expense | $ | — | $ | (26 | ) | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long-term debt | ' | ||||||||
Schedule of long-term debt | ' | ||||||||
As of September 30, 2013 and December 31, 2012, long-term debt was as follows: | |||||||||
(dollars in millions) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Senior Secured Term Loan* | $ | 2,611 | $ | 2,614 | |||||
Floating Rate Senior Notes due 2015 (4.146% as of September 30, 2013 and 4.469% as of December 31, 2012) | 300 | 300 | |||||||
10% Senior Notes due 2018 | 640 | 640 | |||||||
11.875% Senior Notes due 2019 | 605 | 605 | |||||||
9.375% Senior Notes due 2019 | 500 | 500 | |||||||
8.125% Senior Notes due 2019 | 1,200 | 1,200 | |||||||
8.875% Senior Notes due 2019 | 300 | 300 | |||||||
8.625% Senior Notes due 2020 | 900 | 900 | |||||||
7% Senior Notes due 2020 | 775 | 775 | |||||||
15% Convertible Senior Notes due 2013 | — | 172 | |||||||
7% Convertible Senior Notes due 2015 | 200 | 200 | |||||||
7% Convertible Senior Notes due 2015 Series B | 275 | 275 | |||||||
6.5% Convertible Senior Notes due 2016 | 201 | 201 | |||||||
Capital Leases | 78 | 86 | |||||||
Other | 13 | 12 | |||||||
Total Debt Obligations | 8,598 | 8,780 | |||||||
Unamortized Discount: | |||||||||
Discount on Senior Secured Term Loan | (7 | ) | (11 | ) | |||||
Discount on 10% Senior Notes due 2018 | (8 | ) | (10 | ) | |||||
Discount on 11.875% Senior Notes due 2019 | (9 | ) | (9 | ) | |||||
Discount on 9.375% Senior Notes due 2019 | (8 | ) | (8 | ) | |||||
Discount on 8.125% Senior Notes due 2019 | (7 | ) | (8 | ) | |||||
Discount on 7% Convertible Senior Notes due 2015 | (1 | ) | (2 | ) | |||||
Total Unamortized Discount | (40 | ) | (48 | ) | |||||
Carrying Value of Debt | 8,558 | 8,732 | |||||||
Less current portion | (21 | ) | (216 | ) | |||||
Long-term Debt, less current portion | $ | 8,537 | $ | 8,516 | |||||
* The $1.2 billion Tranche B-II 2019 Term Loan due 2019, the $815 million Tranche B-III 2019 Term Loan due 2019 and the $595.5 million Tranche B 2020 Term Loan due 2020 had interest rates of 4.75%, 4.00% and 4.00%, respectively, as of September 30, 2013. The $599 million Tranche B 2016 Term Loan due 2016, the $815 million Tranche B 2019 Term Loan due 2019 and the $1.2 billion Tranche B-II 2019 Term Loan due 2019 had interest rates of 4.75%, 5.25% and 4.75%, respectively, as of December 31, 2012. | |||||||||
Schedule of aggregate future contractual maturities of long-term debt and capital leases (excluding discounts) | ' | ||||||||
Long-Term Debt Maturities | |||||||||
Aggregate future contractual maturities of long-term debt and capital leases (excluding discounts) were as follows as of September 30, 2013 (dollars in millions): | |||||||||
2013 (remaining three months) | $ | 8 | |||||||
2014 | 28 | ||||||||
2015 | 783 | ||||||||
2016 | 208 | ||||||||
2017 | 6 | ||||||||
2018 | 646 | ||||||||
Thereafter | 6,919 | ||||||||
$ | 8,598 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Share-based Compensation | ' | |||||||||||||||
Schedule of non-cash compensation expense and capitalized non-cash compensation | ' | |||||||||||||||
The following table summarizes non-cash compensation expense and capitalized non-cash compensation for the three and nine months ended September 30, 2013 and 2012 (dollars in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OSO | $ | 2 | $ | 4 | $ | 18 | $ | 10 | ||||||||
Restricted Stock Units and Shares | 10 | 16 | 31 | 29 | ||||||||||||
401(k) Match Expense | 6 | 5 | 19 | 18 | ||||||||||||
Restricted Stock Unit Bonus Grant | 12 | 20 | 41 | 36 | ||||||||||||
Management Incentive and Retention Plan | 1 | 5 | 7 | 10 | ||||||||||||
31 | 50 | 116 | 103 | |||||||||||||
Capitalized Non-Cash Compensation | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||
$ | 30 | $ | 49 | $ | 115 | $ | 102 | |||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
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 September 30, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 711 | $ | 919 | $ | (61 | ) | $ | 1,569 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 264 | 405 | (61 | ) | 608 | |||||||||||||||||
Depreciation and Amortization | — | — | 73 | 130 | — | 203 | ||||||||||||||||||
Selling, General and Administrative | 1 | 1 | 385 | 219 | — | 606 | ||||||||||||||||||
Total Costs and Expenses | 1 | 1 | 722 | 754 | (61 | ) | 1,417 | |||||||||||||||||
Operating Income (Loss) | (1 | ) | (1 | ) | (11 | ) | 165 | — | 152 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (38 | ) | (123 | ) | (1 | ) | (3 | ) | — | (165 | ) | |||||||||||||
Interest income (expense) affiliates, net | 274 | 429 | (670 | ) | (33 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (255 | ) | (542 | ) | 122 | — | 675 | — | ||||||||||||||||
Other, net | — | (18 | ) | 1 | 23 | — | 6 | |||||||||||||||||
Total Other Expense | (19 | ) | (254 | ) | (548 | ) | (13 | ) | 675 | (159 | ) | |||||||||||||
Income (Loss) before Income Taxes | (20 | ) | (255 | ) | (559 | ) | 152 | 675 | (7 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (1 | ) | (12 | ) | — | (14 | ) | ||||||||||||||
Net Income (Loss) | (21 | ) | (255 | ) | (560 | ) | 140 | 675 | (21 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 42 | 42 | — | 42 | (84 | ) | 42 | |||||||||||||||||
Comprehensive Income (Loss) | $ | 21 | $ | (213 | ) | $ | (560 | ) | $ | 182 | $ | 591 | $ | 21 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,090 | $ | 2,803 | $ | (182 | ) | $ | 4,711 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 781 | 1,254 | (182 | ) | 1,853 | |||||||||||||||||
Depreciation and Amortization | — | — | 215 | 381 | — | 596 | ||||||||||||||||||
Selling, General and Administrative | 2 | 1 | 1,178 | 634 | — | 1,815 | ||||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,174 | 2,269 | (182 | ) | 4,264 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (84 | ) | 534 | — | 447 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (114 | ) | (374 | ) | (2 | ) | (11 | ) | — | (501 | ) | |||||||||||||
Interest income (expense) affiliates, net | 819 | 1,284 | (2,008 | ) | (95 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (825 | ) | (1,715 | ) | 398 | — | 2,142 | — | ||||||||||||||||
Other, net | — | (19 | ) | 3 | (14 | ) | — | (30 | ) | |||||||||||||||
Total Other Expense | (120 | ) | (824 | ) | (1,609 | ) | (120 | ) | 2,142 | (531 | ) | |||||||||||||
Income (Loss) before Income Taxes | (122 | ) | (825 | ) | (1,693 | ) | 414 | 2,142 | (84 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (2 | ) | (36 | ) | — | (39 | ) | ||||||||||||||
Net Income (Loss) | (123 | ) | (825 | ) | (1,695 | ) | 378 | 2,142 | (123 | ) | ||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (21 | ) | (21 | ) | — | (21 | ) | 42 | (21 | ) | ||||||||||||||
Comprehensive Income (Loss) | $ | (144 | ) | $ | (846 | ) | $ | (1,695 | ) | $ | 357 | $ | 2,184 | $ | (144 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 672 | $ | 981 | $ | (63 | ) | $ | 1,590 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 256 | 447 | (61 | ) | 642 | |||||||||||||||||
Depreciation and Amortization | — | — | 63 | 122 | — | 185 | ||||||||||||||||||
Selling, General and Administrative | 1 | 1 | 410 | 215 | (2 | ) | 625 | |||||||||||||||||
Total Costs and Expenses | 1 | 1 | 729 | 784 | (63 | ) | 1,452 | |||||||||||||||||
Operating Income (Loss) | (1 | ) | (1 | ) | (57 | ) | 197 | — | 138 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | ||||||||||||||||||
Interest expense | (43 | ) | (137 | ) | (1 | ) | (7 | ) | — | (188 | ) | |||||||||||||
Interest income (expense) affiliates, net | 244 | 400 | (561 | ) | (83 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (365 | ) | (516 | ) | 40 | — | 841 | — | ||||||||||||||||
Other, net | — | (111 | ) | 3 | 5 | — | (103 | ) | ||||||||||||||||
Total Other Expense | (164 | ) | (364 | ) | (519 | ) | (85 | ) | 841 | (291 | ) | |||||||||||||
Income (Loss) before Income Taxes | (165 | ) | (365 | ) | (576 | ) | 112 | 841 | (153 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (1 | ) | (11 | ) | — | (13 | ) | ||||||||||||||
Net Income (Loss) | (166 | ) | (365 | ) | (577 | ) | 101 | 841 | (166 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 122 | 122 | — | 48 | (170 | ) | 122 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (44 | ) | $ | (243 | ) | $ | (577 | ) | $ | 149 | $ | 671 | $ | (44 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,957 | $ | 2,995 | $ | (190 | ) | $ | 4,762 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 736 | 1,393 | (182 | ) | 1,947 | |||||||||||||||||
Depreciation and Amortization | — | — | 196 | 367 | — | 563 | ||||||||||||||||||
Selling, General and Administrative | 2 | 1 | 1,207 | 663 | (8 | ) | 1,865 | |||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,139 | 2,423 | (190 | ) | 4,375 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (182 | ) | 572 | — | 387 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Interest expense | (123 | ) | (410 | ) | (2 | ) | (23 | ) | — | (558 | ) | |||||||||||||
Interest income (expense) affiliates, net | 734 | 1,202 | (1,678 | ) | (258 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (935 | ) | (1,593 | ) | 101 | — | 2,427 | — | ||||||||||||||||
Other, net | (39 | ) | (133 | ) | 6 | 4 | — | (162 | ) | |||||||||||||||
Total Other Expense | (363 | ) | (934 | ) | (1,572 | ) | (276 | ) | 2,427 | (718 | ) | |||||||||||||
Income (Loss) before Income Taxes | (365 | ) | (935 | ) | (1,754 | ) | 296 | 2,427 | (331 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (3 | ) | (31 | ) | — | (35 | ) | ||||||||||||||
Net Income (Loss) | (366 | ) | (935 | ) | (1,757 | ) | 265 | 2,427 | (366 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 108 | 108 | — | 18 | (126 | ) | 108 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (258 | ) | $ | (827 | ) | $ | (1,757 | ) | $ | 283 | $ | 2,301 | $ | (258 | ) | ||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
September 30, 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 | $ | 9 | $ | 6 | $ | 289 | $ | 203 | $ | — | $ | 507 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 107 | 631 | — | 738 | ||||||||||||||||||
Due from affiliates | 15,285 | 16,647 | — | — | (31,932 | ) | — | |||||||||||||||||
Other | 3 | 15 | 64 | 105 | — | 187 | ||||||||||||||||||
Total Current Assets | 15,297 | 16,668 | 461 | 945 | (31,932 | ) | 1,439 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,004 | 5,226 | — | 8,230 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 17 | 3 | — | 23 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 404 | 2,386 | — | 2,790 | ||||||||||||||||||
Investment in Subsidiaries | (12,526 | ) | (22,242 | ) | 3,921 | — | 30,847 | — | ||||||||||||||||
Other Assets, net | 13 | 107 | 11 | 239 | — | 370 | ||||||||||||||||||
Total Assets | $ | 2,787 | $ | (5,467 | ) | $ | 7,818 | $ | 8,799 | $ | (1,085 | ) | $ | 12,852 | ||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 1 | $ | 51 | $ | 581 | $ | — | $ | 633 | ||||||||||||
Current portion of long-term debt | — | — | 2 | 19 | — | 21 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 156 | 56 | — | 212 | ||||||||||||||||||
Accrued interest | 53 | 116 | — | 1 | — | 170 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 104 | 115 | — | 219 | ||||||||||||||||||
Due to affiliates | — | — | 31,511 | 421 | (31,932 | ) | — | |||||||||||||||||
Other | 1 | 24 | 76 | 74 | — | 175 | ||||||||||||||||||
Total Current Liabilities | 54 | 141 | 31,900 | 1,267 | (31,932 | ) | 1,430 | |||||||||||||||||
Long-Term Debt, less current portion | 1,571 | 6,896 | 18 | 52 | — | 8,537 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 584 | 312 | — | 896 | ||||||||||||||||||
Other Liabilities | 15 | 26 | 132 | 669 | — | 842 | ||||||||||||||||||
Commitments and Contingencies | — | — | — | — | — | — | ||||||||||||||||||
Stockholders' Equity (Deficit) | 1,147 | (12,530 | ) | (24,816 | ) | 6,499 | 30,847 | 1,147 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 2,787 | $ | (5,467 | ) | $ | 7,818 | $ | 8,799 | $ | (1,085 | ) | $ | 12,852 | ||||||||||
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 | ||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 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 | $ | (105 | ) | $ | (441 | ) | $ | 298 | $ | 575 | $ | — | $ | 327 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (235 | ) | (336 | ) | — | (571 | ) | |||||||||||||||
Decrease in restricted cash and securities, net | 9 | — | — | 4 | — | 13 | ||||||||||||||||||
Proceeds from the sale of property, plant and equipment and other assets | — | — | — | 16 | — | 16 | ||||||||||||||||||
Other | — | — | — | (14 | ) | — | (14 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 9 | — | (235 | ) | (330 | ) | — | (556 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | 590 | — | — | — | 590 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (172 | ) | (607 | ) | (4 | ) | (27 | ) | — | (810 | ) | |||||||||||||
Increase (decrease) due from/to affiliates, net | 24 | 459 | (156 | ) | (327 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (148 | ) | 442 | (160 | ) | (354 | ) | — | (220 | ) | ||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (23 | ) | — | (23 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (244 | ) | 1 | (97 | ) | (132 | ) | — | (472 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 253 | 5 | 386 | 335 | — | 979 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 9 | $ | 6 | $ | 289 | $ | 203 | $ | — | $ | 507 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 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 | $ | (48 | ) | $ | (442 | ) | $ | 80 | $ | 588 | $ | — | $ | 178 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (199 | ) | (346 | ) | — | (545 | ) | |||||||||||||||
Decrease in restricted cash and securities, net | 3 | — | 1 | 11 | — | 15 | ||||||||||||||||||
Proceeds from sale of property, plant and equipment and other assets | — | — | — | 5 | — | 5 | ||||||||||||||||||
Other | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 3 | — | (198 | ) | (343 | ) | — | (538 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 293 | 3,024 | — | — | — | 3,317 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | (2,960 | ) | — | (128 | ) | — | (3,088 | ) | |||||||||||||||
Proceeds from stock options exercised | 5 | — | — | — | — | 5 | ||||||||||||||||||
Increase (decrease) due from/to affiliates, net | 41 | 377 | (285 | ) | (133 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 339 | 441 | (285 | ) | (261 | ) | — | 234 | ||||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net Change in Cash and Cash Equivalents | 294 | (1 | ) | (403 | ) | (15 | ) | — | (125 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 2 | 6 | 618 | 292 | — | 918 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 296 | $ | 5 | $ | 215 | $ | 277 | $ | — | $ | 793 | ||||||||||||
Schedule of Condensed Consolidating Statements of Operations | ' | |||||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 711 | $ | 919 | $ | (61 | ) | $ | 1,569 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 264 | 405 | (61 | ) | 608 | |||||||||||||||||
Depreciation and Amortization | — | — | 73 | 130 | — | 203 | ||||||||||||||||||
Selling, General and Administrative | 1 | 1 | 385 | 219 | — | 606 | ||||||||||||||||||
Total Costs and Expenses | 1 | 1 | 722 | 754 | (61 | ) | 1,417 | |||||||||||||||||
Operating Income (Loss) | (1 | ) | (1 | ) | (11 | ) | 165 | — | 152 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (38 | ) | (123 | ) | (1 | ) | (3 | ) | — | (165 | ) | |||||||||||||
Interest income (expense) affiliates, net | 274 | 429 | (670 | ) | (33 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (255 | ) | (542 | ) | 122 | — | 675 | — | ||||||||||||||||
Other, net | — | (18 | ) | 1 | 23 | — | 6 | |||||||||||||||||
Total Other Expense | (19 | ) | (254 | ) | (548 | ) | (13 | ) | 675 | (159 | ) | |||||||||||||
Income (Loss) before Income Taxes | (20 | ) | (255 | ) | (559 | ) | 152 | 675 | (7 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (1 | ) | (12 | ) | — | (14 | ) | ||||||||||||||
Net Income (Loss) | (21 | ) | (255 | ) | (560 | ) | 140 | 675 | (21 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 42 | 42 | — | 42 | (84 | ) | 42 | |||||||||||||||||
Comprehensive Income (Loss) | $ | 21 | $ | (213 | ) | $ | (560 | ) | $ | 182 | $ | 591 | $ | 21 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,090 | $ | 2,803 | $ | (182 | ) | $ | 4,711 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 781 | 1,254 | (182 | ) | 1,853 | |||||||||||||||||
Depreciation and Amortization | — | — | 215 | 381 | — | 596 | ||||||||||||||||||
Selling, General and Administrative | 2 | 1 | 1,178 | 634 | — | 1,815 | ||||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,174 | 2,269 | (182 | ) | 4,264 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (84 | ) | 534 | — | 447 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (114 | ) | (374 | ) | (2 | ) | (11 | ) | — | (501 | ) | |||||||||||||
Interest income (expense) affiliates, net | 819 | 1,284 | (2,008 | ) | (95 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (825 | ) | (1,715 | ) | 398 | — | 2,142 | — | ||||||||||||||||
Other, net | — | (19 | ) | 3 | (14 | ) | — | (30 | ) | |||||||||||||||
Total Other Expense | (120 | ) | (824 | ) | (1,609 | ) | (120 | ) | 2,142 | (531 | ) | |||||||||||||
Income (Loss) before Income Taxes | (122 | ) | (825 | ) | (1,693 | ) | 414 | 2,142 | (84 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (2 | ) | (36 | ) | — | (39 | ) | ||||||||||||||
Net Income (Loss) | (123 | ) | (825 | ) | (1,695 | ) | 378 | 2,142 | (123 | ) | ||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (21 | ) | (21 | ) | — | (21 | ) | 42 | (21 | ) | ||||||||||||||
Comprehensive Income (Loss) | $ | (144 | ) | $ | (846 | ) | $ | (1,695 | ) | $ | 357 | $ | 2,184 | $ | (144 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 672 | $ | 981 | $ | (63 | ) | $ | 1,590 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 256 | 447 | (61 | ) | 642 | |||||||||||||||||
Depreciation and Amortization | — | — | 63 | 122 | — | 185 | ||||||||||||||||||
Selling, General and Administrative | 1 | 1 | 410 | 215 | (2 | ) | 625 | |||||||||||||||||
Total Costs and Expenses | 1 | 1 | 729 | 784 | (63 | ) | 1,452 | |||||||||||||||||
Operating Income (Loss) | (1 | ) | (1 | ) | (57 | ) | 197 | — | 138 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | ||||||||||||||||||
Interest expense | (43 | ) | (137 | ) | (1 | ) | (7 | ) | — | (188 | ) | |||||||||||||
Interest income (expense) affiliates, net | 244 | 400 | (561 | ) | (83 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (365 | ) | (516 | ) | 40 | — | 841 | — | ||||||||||||||||
Other, net | — | (111 | ) | 3 | 5 | — | (103 | ) | ||||||||||||||||
Total Other Expense | (164 | ) | (364 | ) | (519 | ) | (85 | ) | 841 | (291 | ) | |||||||||||||
Income (Loss) before Income Taxes | (165 | ) | (365 | ) | (576 | ) | 112 | 841 | (153 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (1 | ) | (11 | ) | — | (13 | ) | ||||||||||||||
Net Income (Loss) | (166 | ) | (365 | ) | (577 | ) | 101 | 841 | (166 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 122 | 122 | — | 48 | (170 | ) | 122 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (44 | ) | $ | (243 | ) | $ | (577 | ) | $ | 149 | $ | 671 | $ | (44 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,957 | $ | 2,995 | $ | (190 | ) | $ | 4,762 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Cost of Revenue | — | — | 736 | 1,393 | (182 | ) | 1,947 | |||||||||||||||||
Depreciation and Amortization | — | — | 196 | 367 | — | 563 | ||||||||||||||||||
Selling, General and Administrative | 2 | 1 | 1,207 | 663 | (8 | ) | 1,865 | |||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,139 | 2,423 | (190 | ) | 4,375 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (182 | ) | 572 | — | 387 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Interest expense | (123 | ) | (410 | ) | (2 | ) | (23 | ) | — | (558 | ) | |||||||||||||
Interest income (expense) affiliates, net | 734 | 1,202 | (1,678 | ) | (258 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (935 | ) | (1,593 | ) | 101 | — | 2,427 | — | ||||||||||||||||
Other, net | (39 | ) | (133 | ) | 6 | 4 | — | (162 | ) | |||||||||||||||
Total Other Expense | (363 | ) | (934 | ) | (1,572 | ) | (276 | ) | 2,427 | (718 | ) | |||||||||||||
Income (Loss) before Income Taxes | (365 | ) | (935 | ) | (1,754 | ) | 296 | 2,427 | (331 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (3 | ) | (31 | ) | — | (35 | ) | ||||||||||||||
Net Income (Loss) | (366 | ) | (935 | ) | (1,757 | ) | 265 | 2,427 | (366 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 108 | 108 | — | 18 | (126 | ) | 108 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (258 | ) | $ | (827 | ) | $ | (1,757 | ) | $ | 283 | $ | 2,301 | $ | (258 | ) | ||||||||
Schedule of Condensed Consolidating Balance Sheets | ' | |||||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
September 30, 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 | $ | 9 | $ | 6 | $ | 289 | $ | 203 | $ | — | $ | 507 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 107 | 631 | — | 738 | ||||||||||||||||||
Due from affiliates | 15,285 | 16,647 | — | — | (31,932 | ) | — | |||||||||||||||||
Other | 3 | 15 | 64 | 105 | — | 187 | ||||||||||||||||||
Total Current Assets | 15,297 | 16,668 | 461 | 945 | (31,932 | ) | 1,439 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,004 | 5,226 | — | 8,230 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 17 | 3 | — | 23 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 404 | 2,386 | — | 2,790 | ||||||||||||||||||
Investment in Subsidiaries | (12,526 | ) | (22,242 | ) | 3,921 | — | 30,847 | — | ||||||||||||||||
Other Assets, net | 13 | 107 | 11 | 239 | — | 370 | ||||||||||||||||||
Total Assets | $ | 2,787 | $ | (5,467 | ) | $ | 7,818 | $ | 8,799 | $ | (1,085 | ) | $ | 12,852 | ||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 1 | $ | 51 | $ | 581 | $ | — | $ | 633 | ||||||||||||
Current portion of long-term debt | — | — | 2 | 19 | — | 21 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 156 | 56 | — | 212 | ||||||||||||||||||
Accrued interest | 53 | 116 | — | 1 | — | 170 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 104 | 115 | — | 219 | ||||||||||||||||||
Due to affiliates | — | — | 31,511 | 421 | (31,932 | ) | — | |||||||||||||||||
Other | 1 | 24 | 76 | 74 | — | 175 | ||||||||||||||||||
Total Current Liabilities | 54 | 141 | 31,900 | 1,267 | (31,932 | ) | 1,430 | |||||||||||||||||
Long-Term Debt, less current portion | 1,571 | 6,896 | 18 | 52 | — | 8,537 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 584 | 312 | — | 896 | ||||||||||||||||||
Other Liabilities | 15 | 26 | 132 | 669 | — | 842 | ||||||||||||||||||
Commitments and Contingencies | — | — | — | — | — | — | ||||||||||||||||||
Stockholders' Equity (Deficit) | 1,147 | (12,530 | ) | (24,816 | ) | 6,499 | 30,847 | 1,147 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 2,787 | $ | (5,467 | ) | $ | 7,818 | $ | 8,799 | $ | (1,085 | ) | $ | 12,852 | ||||||||||
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 | ||||||||||||||||||||||||
Nine Months Ended September 30, 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 | $ | (105 | ) | $ | (441 | ) | $ | 298 | $ | 575 | $ | — | $ | 327 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (235 | ) | (336 | ) | — | (571 | ) | |||||||||||||||
Decrease in restricted cash and securities, net | 9 | — | — | 4 | — | 13 | ||||||||||||||||||
Proceeds from the sale of property, plant and equipment and other assets | — | — | — | 16 | — | 16 | ||||||||||||||||||
Other | — | — | — | (14 | ) | — | (14 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 9 | — | (235 | ) | (330 | ) | — | (556 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | 590 | — | — | — | 590 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (172 | ) | (607 | ) | (4 | ) | (27 | ) | — | (810 | ) | |||||||||||||
Increase (decrease) due from/to affiliates, net | 24 | 459 | (156 | ) | (327 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (148 | ) | 442 | (160 | ) | (354 | ) | — | (220 | ) | ||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (23 | ) | — | (23 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (244 | ) | 1 | (97 | ) | (132 | ) | — | (472 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 253 | 5 | 386 | 335 | — | 979 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 9 | $ | 6 | $ | 289 | $ | 203 | $ | — | $ | 507 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 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 | $ | (48 | ) | $ | (442 | ) | $ | 80 | $ | 588 | $ | — | $ | 178 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (199 | ) | (346 | ) | — | (545 | ) | |||||||||||||||
Decrease in restricted cash and securities, net | 3 | — | 1 | 11 | — | 15 | ||||||||||||||||||
Proceeds from sale of property, plant and equipment and other assets | — | — | — | 5 | — | 5 | ||||||||||||||||||
Other | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 3 | — | (198 | ) | (343 | ) | — | (538 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 293 | 3,024 | — | — | — | 3,317 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | (2,960 | ) | — | (128 | ) | — | (3,088 | ) | |||||||||||||||
Proceeds from stock options exercised | 5 | — | — | — | — | 5 | ||||||||||||||||||
Increase (decrease) due from/to affiliates, net | 41 | 377 | (285 | ) | (133 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 339 | 441 | (285 | ) | (261 | ) | — | 234 | ||||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net Change in Cash and Cash Equivalents | 294 | (1 | ) | (403 | ) | (15 | ) | — | (125 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 2 | 6 | 618 | 292 | — | 918 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 296 | $ | 5 | $ | 215 | $ | 277 | $ | — | $ | 793 | ||||||||||||
Loss_Per_Share_Details
Loss Per Share (Details) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Convertible Senior Notes | ' | ' |
Loss per share | ' | ' |
Securities not included in computation of diluted loss per share (in millions of shares) | 28 | 35 |
Stock options, outperform stock appreciation rights (OSOs), restricted stock units and warrants | ' | ' |
Loss per share | ' | ' |
Securities not included in computation of diluted loss per share (in millions of shares) | 6 | 7 |
Acquired_Intangible_Assets_Det
Acquired Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | $999 | ' | $999 | ' | $989 |
Finite-Lived Intangible Assets, Accumulated Amortization | -808 | ' | -808 | ' | -753 |
Finite-Lived Intangible Assets, Net | 191 | ' | 191 | ' | 236 |
Acquired finite-lived intangible asset amortization expense | 18 | 21 | 54 | 71 | ' |
Indefinite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Total identifiable acquisition-related intangible assets, Gross Carrying Amount | 1,031 | ' | 1,031 | ' | 1,021 |
Total identifiable acquisition-related intangible assets, Net | 223 | ' | 223 | ' | 268 |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
2013 (remaining three months) | 18 | ' | 18 | ' | ' |
2014 | 64 | ' | 64 | ' | ' |
2015 | 48 | ' | 48 | ' | ' |
2016 | 31 | ' | 31 | ' | ' |
2017 | 14 | ' | 14 | ' | ' |
2018 | 13 | ' | 13 | ' | ' |
Thereafter | 3 | ' | 3 | ' | ' |
Finite-Lived Intangible Assets, Net | 191 | ' | 191 | ' | 236 |
Vyvx Trade Name | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets | 32 | ' | 32 | ' | 32 |
Customer Contracts And Relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | 786 | ' | 786 | ' | 776 |
Finite-Lived Intangible Assets, Accumulated Amortization | -666 | ' | -666 | ' | -633 |
Finite-Lived Intangible Assets, Net | 120 | ' | 120 | ' | 143 |
Acquired finite-lived intangible assets weighted average remaining useful lives (in years) | '2 years 6 months | ' | ' | ' | ' |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | 120 | ' | 120 | ' | 143 |
Trademarks | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | 55 | ' | 55 | ' | 55 |
Finite-Lived Intangible Assets, Accumulated Amortization | -28 | ' | -28 | ' | -17 |
Finite-Lived Intangible Assets, Net | 27 | ' | 27 | ' | 38 |
Acquired finite-lived intangible assets weighted average remaining useful lives (in years) | '2 years | ' | ' | ' | ' |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | 27 | ' | 27 | ' | 38 |
Patents and Developed Technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | 158 | ' | 158 | ' | 158 |
Finite-Lived Intangible Assets, Accumulated Amortization | -114 | ' | -114 | ' | -103 |
Finite-Lived Intangible Assets, Net | 44 | ' | 44 | ' | 55 |
Acquired finite-lived intangible assets weighted average remaining useful lives (in years) | '3 years 3 months | ' | ' | ' | ' |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | $44 | ' | $44 | ' | $55 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Liabilities, Recurring (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Total Carrying Value in Consolidated Balance Sheet | ' | ' |
Liabilities Recorded at Fair Value in the Financial Statements: | ' | ' |
Interest Rate Swap Liabilities (included in other current and non-current liabilities) | $23 | $56 |
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | 23 | 56 |
Long-term Debt, including the current portion: | ' | ' |
Term Loans | 2,604 | 2,603 |
Senior Notes | 5,188 | 5,185 |
Convertible Notes | 675 | 846 |
Capital Leases and Other | 91 | 98 |
Total Long-term Debt, including the current portion: | 8,558 | 8,732 |
Unadjusted Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ' | ' |
Liabilities Recorded at Fair Value in the Financial Statements: | ' | ' |
Interest Rate Swap Liabilities (included in other current and non-current liabilities) | 0 | 0 |
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | 0 | 0 |
Long-term Debt, including the current portion: | ' | ' |
Term Loans | 2,607 | 2,631 |
Senior Notes | 5,609 | 5,712 |
Convertible Notes | 304 | 286 |
Capital Leases and Other | 0 | 0 |
Total Long-term Debt, including the current portion: | 8,520 | 8,629 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Liabilities Recorded at Fair Value in the Financial Statements: | ' | ' |
Interest Rate Swap Liabilities (included in other current and non-current liabilities) | 23 | 56 |
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | 23 | 56 |
Long-term Debt, including the current portion: | ' | ' |
Term Loans | 0 | 0 |
Senior Notes | 0 | 0 |
Convertible Notes | 581 | 748 |
Capital Leases and Other | 91 | 98 |
Total Long-term Debt, including the current portion: | $672 | $846 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Liabilities, Additional Information (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Term Loans | 11.875% Senior Notes due 2019 | 11.875% Senior Notes due 2019 | 8.875% Senior Notes due 2019 | 8.875% Senior Notes due 2019 | 6.5% Convertible Senior Notes due 2016 | 6.5% Convertible Senior Notes due 2016 | Not actively traded convertible notes | 7.0% Convertible Senior Notes due 2015 | 7.0% Convertible Senior Notes due 2015 | 7.0% Convertible Senior Notes due 2015 Series B | 7.0% Convertible Senior Notes due 2015 Series B | 15.0% Convertible Senior Notes due 2013 | 15.0% Convertible Senior Notes due 2013 | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring |
Term Loans | Term Loans | Actively traded convertible notes | Actively traded convertible notes | Not actively traded convertible notes | Not actively traded convertible notes | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | |||||||||||||||
Senior Notes | Senior Notes | |||||||||||||||||||||
Liabilities measured on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,600 | $2,600 | ' | ' | ' | ' | ' | ' |
Collateral for debt, Equity interest in Level 3 Financing, Inc's Canadian subsidiary (as a percent) | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,600 | 5,700 |
Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $304 | $286 | $581 | $748 | ' | ' |
Stated interest rate (as a percent) | ' | 11.88% | 11.88% | 8.88% | 8.88% | 6.50% | 6.50% | ' | 7.00% | 7.00% | 7.00% | 7.00% | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Security coupon rates used for valuation, lowest interest rate | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Security coupon rates used for valuation, highest interest rate | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2007 | Sep. 30, 2013 | Mar. 31, 2007 | Mar. 31, 2007 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Interest Expense | Interest Expense | Interest Expense | Interest Expense | Other current liabilities | Other non-current liabilities | |||||
derivatives | derivatives | Interest Rate Swap, Agreement One | Interest Rate Swap, Agreement Two | |||||||||||
Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23 | $56 |
Interest rate swaps, number of instruments | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swaps, notional amount | ' | ' | ' | ' | 1,000 | 1,000 | 500 | 500 | ' | ' | ' | ' | ' | ' |
Basis of interest payment | ' | ' | ' | ' | 'three month LIBOR | 'three month LIBOR | 'three month LIBOR | 'three month LIBOR | ' | ' | ' | ' | ' | ' |
Fixed interest rate paid under agreement (as a percent) | ' | ' | ' | ' | ' | ' | 4.93% | 4.92% | ' | ' | ' | ' | ' | ' |
Loss on interest rate swaps | ' | -60 | 0 | -60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedging contracts, net gains (losses) recognized in Accumulated Other Comprehensive Income (Loss) | 0 | 74 | 0 | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedging contracts, amount of gains (losses) reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -4 | 0 | -26 | ' | ' |
Loss on interest rate derivative instruments not designated as hedging instruments recognized in Other, net in the Consolidated Statement of Operations | ($1) | ($3) | ($2) | ($3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Long-term debt | ' | ' | ||
Total Debt Obligations | $8,598 | $8,780 | ||
Total Unamortized Discount | -40 | -48 | ||
Carrying Value of Debt | 8,558 | 8,732 | ||
Less current portion | -21 | -216 | ||
Long-Term Debt, less current portion | 8,537 | 8,516 | ||
Senior Secured Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 2,611 | [1] | 2,614 | [1] |
Total Unamortized Discount | -7 | -11 | ||
Tranche B-II 2019 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 4.75% | 4.75% | ||
Total Debt Obligations | 1,200 | 1,200 | ||
Tranche B-III 2019 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 4.00% | ' | ||
Total Debt Obligations | 815 | ' | ||
Tranche B 2020 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 4.00% | ' | ||
Total Debt Obligations | 595.5 | ' | ||
Tranche B 2016 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | ' | 4.75% | ||
Total Debt Obligations | ' | 599 | ||
Tranche B 2019 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | ' | 5.25% | ||
Total Debt Obligations | ' | 815 | ||
Floating Rate Senior Notes due 2015 (4.146% as of September 30, 2013 and 4.469% as of December 31, 2012) | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 4.15% | 4.47% | ||
Total Debt Obligations | 300 | 300 | ||
10% Senior Notes due 2018 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 10.00% | 10.00% | ||
Total Debt Obligations | 640 | 640 | ||
Total Unamortized Discount | -8 | -10 | ||
11.875% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 11.88% | 11.88% | ||
Total Debt Obligations | 605 | 605 | ||
Total Unamortized Discount | -9 | -9 | ||
9.375% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 9.38% | 9.38% | ||
Total Debt Obligations | 500 | 500 | ||
Total Unamortized Discount | -8 | -8 | ||
8.125% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 8.13% | 8.13% | ||
Total Debt Obligations | 1,200 | 1,200 | ||
Total Unamortized Discount | -7 | -8 | ||
8.875% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 8.88% | 8.88% | ||
Total Debt Obligations | 300 | 300 | ||
8.625% Senior Notes due 2020 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 8.63% | 8.63% | ||
Total Debt Obligations | 900 | 900 | ||
7.0% Senior Notes due 2020 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 7.00% | 7.00% | ||
Total Debt Obligations | 775 | 775 | ||
15.0% Convertible Senior Notes due 2013 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 15.00% | 15.00% | ||
Total Debt Obligations | 0 | 172 | ||
7.0% Convertible Senior Notes due 2015 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 7.00% | 7.00% | ||
Total Debt Obligations | 200 | 200 | ||
Total Unamortized Discount | -1 | -2 | ||
7.0% Convertible Senior Notes due 2015 Series B | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 7.00% | 7.00% | ||
Total Debt Obligations | 275 | 275 | ||
6.5% Convertible Senior Notes due 2016 | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 6.50% | 6.50% | ||
Total Debt Obligations | 201 | 201 | ||
Capital Leases | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 78 | 86 | ||
Other | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | $13 | $12 | ||
[1] | * The $1.2 billion Tranche B-II 2019 Term Loan due 2019, the $815 million Tranche B-III 2019 Term Loan due 2019 and the $595.5 million Tranche B 2020 Term Loan due 2020 had interest rates of 4.75%, 4.00% and 4.00%, respectively, as of SeptemberB 30, 2013. The $599 million Tranche B 2016 Term Loan due 2016, the $815 million Tranche B 2019 Term Loan due 2019 and the $1.2 billion Tranche B-II 2019 Term Loan due 2019 had interest rates of 4.75%, 5.25% and 4.75%, respectively, as of December 31, 2012. |
LongTerm_Debt_Textuals_Details
Long-Term Debt - Textuals (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Aug. 16, 2013 | Aug. 16, 2013 | Aug. 16, 2013 | Sep. 30, 2013 | Aug. 16, 2013 | Aug. 16, 2013 | Aug. 16, 2013 | Dec. 31, 2012 | Aug. 12, 2013 | Aug. 12, 2013 | Aug. 12, 2013 | Sep. 30, 2013 | Aug. 12, 2013 | Aug. 12, 2013 | Aug. 12, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 15, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Tranche B 2016 Term Loan | Tranche B 2016 Term Loan | Tranche B 2016 Term Loan | Tranche B 2016 Term Loan | Tranche B 2020 Term Loan | Tranche B 2020 Term Loan | Tranche B 2020 Term Loan | Tranche B 2020 Term Loan | Tranche B 2019 Term Loan | Tranche B 2019 Term Loan | Tranche B 2019 Term Loan | Tranche B 2019 Term Loan | Tranche B-III 2019 Term Loan | Tranche B-III 2019 Term Loan | Tranche B-III 2019 Term Loan | Tranche B-III 2019 Term Loan | 15.0% Convertible Senior Notes due 2013 | 15.0% Convertible Senior Notes due 2013 | 15.0% Convertible Senior Notes due 2013 | 8.875% Senior Notes due 2019 | 8.875% Senior Notes due 2019 | 8.875% Senior Notes due 2019 | 7.0% Senior Notes due 2020 | 7.0% Senior Notes due 2020 | 7.0% Senior Notes due 2020 | ||||||
Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Communications, Inc. | Level 3 Communications, Inc. | Level 3 Financing, Inc. | ||||||||||||||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||
Minimum | Minimum | Minimum | Minimum | |||||||||||||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | $595.50 | ' | ' | ' | ' | ' | ' | ' | $815 | ' | ' | ' | ' | ' | ' | ' | ' | $172 | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | 600 | ' | ' | ' | 595.5 | ' | ' | ' | ' | ' | ' | ' | 815 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on modification and extinguishment of debt, net | -17 | -49 | -17 | -110 | ' | ' | -8 | ' | ' | ' | ' | ' | ' | ' | -9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tranche B 2016 Term Loan repayment of 0.25% of the original $600 million principal amount | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis (LIBOR) | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' | ' | 3.00% | ' | ' | ' | 3.75% | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | 4.75% | ' | ' | 1.50% | 4.00% | ' | ' | 1.00% | 5.25% | ' | ' | 1.50% | 4.00% | ' | ' | 1.00% | 15.00% | 15.00% | 15.00% | 8.88% | 8.88% | 8.88% | 7.00% | 7.00% | 7.00% |
Total Debt Obligations | 8,598 | ' | 8,598 | ' | 8,780 | 599 | ' | ' | ' | 595.5 | ' | ' | ' | 815 | ' | ' | ' | 815 | ' | ' | ' | 0 | 172 | ' | 300 | 300 | ' | 775 | 775 | ' |
2013 (remaining three months) | 8 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 28 | ' | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 783 | ' | 783 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 208 | ' | 208 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 646 | ' | 646 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $6,919 | ' | $6,919 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Noncas
Stock-Based Compensation - Non-cash compensation expense and capitalized non-cash compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Nonvested restricted stock and restricted stock units (RSUs) | 4,000,000 | ' | 4,000,000 | ' |
OSOs outstanding | 2,000,000 | ' | 2,000,000 | ' |
Stock-based compensation expense | $31 | $50 | $116 | $103 |
Capitalized Non-cash Compensation | -1 | -1 | -1 | -1 |
Non-cash compensation expense and capitalized non-cash compensation | 30 | 49 | 115 | 102 |
Outperform Stock Options | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 2 | 4 | 18 | 10 |
Restricted Stock Units and Shares | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 10 | 16 | 31 | 29 |
401(k) Match Expense | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 6 | 5 | 19 | 18 |
Restricted Stock Unit Bonus Grant | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 12 | 20 | 41 | 36 |
Management Incentive and Retention Plan | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | $1 | $5 | $7 | $10 |
Non-qualified stock options | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
OSOs outstanding | 43,000 | ' | 43,000 | ' |
Commitments_Contingencies_and_1
Commitments, Contingencies and Other Items - Lawsuits (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Loss Contingencies | ' |
Estimated Litigation Liability | $248 |
Peruvian Tax Litigation | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Asserted Claim | 89 |
Peruvian Tax Litigation, Before Interest | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Asserted Claim | 26 |
Peruvian Tax Litigation, Income Tax witholding 2001 and 2002 | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Asserted Claim | 3 |
Peruvian Tax Litigation, VAT for 2001 and 2002 | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Asserted Claim | 7 |
Peruvian Tax Litigation, Disallowance of VAT in 2005 | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Asserted Claim | 16 |
Employee Severance and Contractor Termination Disputes | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Asserted Claim | 40 |
up to | Brazilian Tax Claims | Pending Litigation | ' |
Loss Contingencies | ' |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $61 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Other Items - Other Commitments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Amount outstanding under letters of credit or other similar obligations | $28 | $31 |
Collateralized by cash, that is reflected on the consolidated balance sheets as restricted cash | $25 | $29 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Statements of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | $1,569 | $1,590 | $4,711 | $4,762 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 608 | 642 | 1,853 | 1,947 |
Depreciation and Amortization | 203 | 185 | 596 | 563 |
Selling, General and Administrative | 606 | 625 | 1,815 | 1,865 |
Total Costs and Expenses | 1,417 | 1,452 | 4,264 | 4,375 |
Operating Income (Loss) | 152 | 138 | 447 | 387 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | 0 | 0 | 0 | 2 |
Interest expense | -165 | -188 | -501 | -558 |
Interest income (expense) affiliates, net | 0 | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Other, net | 6 | -103 | -30 | -162 |
Total Other Expense | -159 | -291 | -531 | -718 |
Income (Loss) before Income Taxes | -7 | -153 | -84 | -331 |
Income Tax Expense | -14 | -13 | -39 | -35 |
Net Income (Loss) | -21 | -166 | -123 | -366 |
Other Comprehensive Income (Loss), Net of Income Taxes | 42 | 122 | -21 | 108 |
Comprehensive Income (Loss) | 21 | -44 | -144 | -258 |
Level 3 Communications, Inc. | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 0 | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Selling, General and Administrative | 1 | 1 | 2 | 2 |
Total Costs and Expenses | 1 | 1 | 2 | 2 |
Operating Income (Loss) | -1 | -1 | -2 | -2 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | ' | 0 | ' | 0 |
Interest expense | -38 | -43 | -114 | -123 |
Interest income (expense) affiliates, net | 274 | 244 | 819 | 734 |
Equity in net earnings (losses) of subsidiaries | -255 | -365 | -825 | -935 |
Other, net | 0 | 0 | 0 | -39 |
Total Other Expense | -19 | -164 | -120 | -363 |
Income (Loss) before Income Taxes | -20 | -165 | -122 | -365 |
Income Tax Expense | -1 | -1 | -1 | -1 |
Net Income (Loss) | -21 | -166 | -123 | -366 |
Other Comprehensive Income (Loss), Net of Income Taxes | 42 | 122 | -21 | 108 |
Comprehensive Income (Loss) | 21 | -44 | -144 | -258 |
Level 3 Financing, Inc. | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 0 | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Selling, General and Administrative | 1 | 1 | 1 | 1 |
Total Costs and Expenses | 1 | 1 | 1 | 1 |
Operating Income (Loss) | -1 | -1 | -1 | -1 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | ' | 0 | ' | 0 |
Interest expense | -123 | -137 | -374 | -410 |
Interest income (expense) affiliates, net | 429 | 400 | 1,284 | 1,202 |
Equity in net earnings (losses) of subsidiaries | -542 | -516 | -1,715 | -1,593 |
Other, net | -18 | -111 | -19 | -133 |
Total Other Expense | -254 | -364 | -824 | -934 |
Income (Loss) before Income Taxes | -255 | -365 | -825 | -935 |
Income Tax Expense | 0 | 0 | 0 | 0 |
Net Income (Loss) | -255 | -365 | -825 | -935 |
Other Comprehensive Income (Loss), Net of Income Taxes | 42 | 122 | -21 | 108 |
Comprehensive Income (Loss) | -213 | -243 | -846 | -827 |
Level 3 Communications, LLC | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 711 | 672 | 2,090 | 1,957 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 264 | 256 | 781 | 736 |
Depreciation and Amortization | 73 | 63 | 215 | 196 |
Selling, General and Administrative | 385 | 410 | 1,178 | 1,207 |
Total Costs and Expenses | 722 | 729 | 2,174 | 2,139 |
Operating Income (Loss) | -11 | -57 | -84 | -182 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | ' | 0 | ' | 1 |
Interest expense | -1 | -1 | -2 | -2 |
Interest income (expense) affiliates, net | -670 | -561 | -2,008 | -1,678 |
Equity in net earnings (losses) of subsidiaries | 122 | 40 | 398 | 101 |
Other, net | 1 | 3 | 3 | 6 |
Total Other Expense | -548 | -519 | -1,609 | -1,572 |
Income (Loss) before Income Taxes | -559 | -576 | -1,693 | -1,754 |
Income Tax Expense | -1 | -1 | -2 | -3 |
Net Income (Loss) | -560 | -577 | -1,695 | -1,757 |
Other Comprehensive Income (Loss), Net of Income Taxes | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss) | -560 | -577 | -1,695 | -1,757 |
Other Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 919 | 981 | 2,803 | 2,995 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 405 | 447 | 1,254 | 1,393 |
Depreciation and Amortization | 130 | 122 | 381 | 367 |
Selling, General and Administrative | 219 | 215 | 634 | 663 |
Total Costs and Expenses | 754 | 784 | 2,269 | 2,423 |
Operating Income (Loss) | 165 | 197 | 534 | 572 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | ' | 0 | ' | 1 |
Interest expense | -3 | -7 | -11 | -23 |
Interest income (expense) affiliates, net | -33 | -83 | -95 | -258 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Other, net | 23 | 5 | -14 | 4 |
Total Other Expense | -13 | -85 | -120 | -276 |
Income (Loss) before Income Taxes | 152 | 112 | 414 | 296 |
Income Tax Expense | -12 | -11 | -36 | -31 |
Net Income (Loss) | 140 | 101 | 378 | 265 |
Other Comprehensive Income (Loss), Net of Income Taxes | 42 | 48 | -21 | 18 |
Comprehensive Income (Loss) | 182 | 149 | 357 | 283 |
Eliminations | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | -61 | -63 | -182 | -190 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | -61 | -61 | -182 | -182 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Selling, General and Administrative | 0 | -2 | 0 | -8 |
Total Costs and Expenses | -61 | -63 | -182 | -190 |
Operating Income (Loss) | 0 | 0 | 0 | 0 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | ' | 0 | ' | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Interest income (expense) affiliates, net | 0 | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | 675 | 841 | 2,142 | 2,427 |
Other, net | 0 | 0 | 0 | 0 |
Total Other Expense | 675 | 841 | 2,142 | 2,427 |
Income (Loss) before Income Taxes | 675 | 841 | 2,142 | 2,427 |
Income Tax Expense | 0 | 0 | 0 | 0 |
Net Income (Loss) | 675 | 841 | 2,142 | 2,427 |
Other Comprehensive Income (Loss), Net of Income Taxes | -84 | -170 | 42 | -126 |
Comprehensive Income (Loss) | $591 | $671 | $2,184 | $2,301 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Balance Sheets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $507 | $979 | $793 | $918 |
Restricted cash and securities | 7 | 8 | ' | ' |
Receivables, less allowances for doubtful accounts | 738 | 714 | ' | ' |
Due from affiliates | 0 | 0 | ' | ' |
Other | 187 | 141 | ' | ' |
Total Current Assets | 1,439 | 1,842 | ' | ' |
Property, Plant and Equipment, net | 8,230 | 8,199 | ' | ' |
Restricted Cash and Securities | 23 | 35 | ' | ' |
Goodwill and Other Intangibles Assets, net | 2,790 | 2,833 | ' | ' |
Investment in Subsidiaries | 0 | 0 | ' | ' |
Other Assets, net | 370 | 398 | ' | ' |
Total Assets | 12,852 | 13,307 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 633 | 779 | ' | ' |
Current portion of long-term debt | 21 | 216 | ' | ' |
Accrued payroll and employee benefits | 212 | 211 | ' | ' |
Accrued interest | 170 | 209 | ' | ' |
Current portion of deferred revenue | 219 | 251 | ' | ' |
Due to affiliates | 0 | 0 | ' | ' |
Other | 175 | 136 | ' | ' |
Total Current Liabilities | 1,430 | 1,802 | ' | ' |
Long-Term Debt, less current portion | 8,537 | 8,516 | ' | ' |
Deferred Revenue, less current portion | 896 | 887 | ' | ' |
Other Liabilities | 842 | 931 | ' | ' |
Commitments and Contingencies | 0 | 0 | ' | ' |
Stockholders' Equity (Deficit) | 1,147 | 1,171 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 12,852 | 13,307 | ' | ' |
Level 3 Communications, Inc. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 9 | 253 | 296 | 2 |
Restricted cash and securities | 0 | 0 | ' | ' |
Receivables, less allowances for doubtful accounts | 0 | 0 | ' | ' |
Due from affiliates | 15,285 | 14,446 | ' | ' |
Other | 3 | 3 | ' | ' |
Total Current Assets | 15,297 | 14,702 | ' | ' |
Property, Plant and Equipment, net | 0 | 0 | ' | ' |
Restricted Cash and Securities | 3 | 12 | ' | ' |
Goodwill and Other Intangibles Assets, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | -12,526 | -11,756 | ' | ' |
Other Assets, net | 13 | 16 | ' | ' |
Total Assets | 2,787 | 2,974 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 0 | 1 | ' | ' |
Current portion of long-term debt | 0 | 172 | ' | ' |
Accrued payroll and employee benefits | 0 | 0 | ' | ' |
Accrued interest | 53 | 45 | ' | ' |
Current portion of deferred revenue | 0 | 0 | ' | ' |
Due to affiliates | 0 | 0 | ' | ' |
Other | 1 | 1 | ' | ' |
Total Current Liabilities | 54 | 219 | ' | ' |
Long-Term Debt, less current portion | 1,571 | 1,570 | ' | ' |
Deferred Revenue, less current portion | 0 | 0 | ' | ' |
Other Liabilities | 15 | 14 | ' | ' |
Commitments and Contingencies | 0 | ' | ' | ' |
Stockholders' Equity (Deficit) | 1,147 | 1,171 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 2,787 | 2,974 | ' | ' |
Level 3 Financing, Inc. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 6 | 5 | 5 | 6 |
Restricted cash and securities | 0 | 0 | ' | ' |
Receivables, less allowances for doubtful accounts | 0 | 0 | ' | ' |
Due from affiliates | 16,647 | 15,709 | ' | ' |
Other | 15 | 16 | ' | ' |
Total Current Assets | 16,668 | 15,730 | ' | ' |
Property, Plant and Equipment, net | 0 | 0 | ' | ' |
Restricted Cash and Securities | 0 | 0 | ' | ' |
Goodwill and Other Intangibles Assets, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | -22,242 | -20,470 | ' | ' |
Other Assets, net | 107 | 119 | ' | ' |
Total Assets | -5,467 | -4,621 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 1 | 2 | ' | ' |
Current portion of long-term debt | 0 | 6 | ' | ' |
Accrued payroll and employee benefits | 0 | 0 | ' | ' |
Accrued interest | 116 | 163 | ' | ' |
Current portion of deferred revenue | 0 | 0 | ' | ' |
Due to affiliates | 0 | 0 | ' | ' |
Other | 24 | 1 | ' | ' |
Total Current Liabilities | 141 | 172 | ' | ' |
Long-Term Debt, less current portion | 6,896 | 6,886 | ' | ' |
Deferred Revenue, less current portion | 0 | 0 | ' | ' |
Other Liabilities | 26 | 81 | ' | ' |
Commitments and Contingencies | 0 | ' | ' | ' |
Stockholders' Equity (Deficit) | -12,530 | -11,760 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | -5,467 | -4,621 | ' | ' |
Level 3 Communications, LLC | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 289 | 386 | 215 | 618 |
Restricted cash and securities | 1 | 1 | ' | ' |
Receivables, less allowances for doubtful accounts | 107 | 93 | ' | ' |
Due from affiliates | 0 | 0 | ' | ' |
Other | 64 | 49 | ' | ' |
Total Current Assets | 461 | 529 | ' | ' |
Property, Plant and Equipment, net | 3,004 | 2,926 | ' | ' |
Restricted Cash and Securities | 17 | 17 | ' | ' |
Goodwill and Other Intangibles Assets, net | 404 | 429 | ' | ' |
Investment in Subsidiaries | 3,921 | 3,242 | ' | ' |
Other Assets, net | 11 | 11 | ' | ' |
Total Assets | 7,818 | 7,154 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 51 | 53 | ' | ' |
Current portion of long-term debt | 2 | 6 | ' | ' |
Accrued payroll and employee benefits | 156 | 161 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Current portion of deferred revenue | 104 | 109 | ' | ' |
Due to affiliates | 31,511 | 30,162 | ' | ' |
Other | 76 | 29 | ' | ' |
Total Current Liabilities | 31,900 | 30,520 | ' | ' |
Long-Term Debt, less current portion | 18 | 20 | ' | ' |
Deferred Revenue, less current portion | 584 | 602 | ' | ' |
Other Liabilities | 132 | 75 | ' | ' |
Commitments and Contingencies | 0 | ' | ' | ' |
Stockholders' Equity (Deficit) | -24,816 | -24,063 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 7,818 | 7,154 | ' | ' |
Other Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 203 | 335 | 277 | 292 |
Restricted cash and securities | 6 | 7 | ' | ' |
Receivables, less allowances for doubtful accounts | 631 | 621 | ' | ' |
Due from affiliates | 0 | 7 | ' | ' |
Other | 105 | 73 | ' | ' |
Total Current Assets | 945 | 1,043 | ' | ' |
Property, Plant and Equipment, net | 5,226 | 5,273 | ' | ' |
Restricted Cash and Securities | 3 | 6 | ' | ' |
Goodwill and Other Intangibles Assets, net | 2,386 | 2,404 | ' | ' |
Investment in Subsidiaries | 0 | 0 | ' | ' |
Other Assets, net | 239 | 252 | ' | ' |
Total Assets | 8,799 | 8,978 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 581 | 723 | ' | ' |
Current portion of long-term debt | 19 | 32 | ' | ' |
Accrued payroll and employee benefits | 56 | 50 | ' | ' |
Accrued interest | 1 | 1 | ' | ' |
Current portion of deferred revenue | 115 | 142 | ' | ' |
Due to affiliates | 421 | 0 | ' | ' |
Other | 74 | 105 | ' | ' |
Total Current Liabilities | 1,267 | 1,053 | ' | ' |
Long-Term Debt, less current portion | 52 | 40 | ' | ' |
Deferred Revenue, less current portion | 312 | 285 | ' | ' |
Other Liabilities | 669 | 761 | ' | ' |
Commitments and Contingencies | 0 | ' | ' | ' |
Stockholders' Equity (Deficit) | 6,499 | 6,839 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 8,799 | 8,978 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash and securities | 0 | 0 | ' | ' |
Receivables, less allowances for doubtful accounts | 0 | 0 | ' | ' |
Due from affiliates | -31,932 | -30,162 | ' | ' |
Other | 0 | 0 | ' | ' |
Total Current Assets | -31,932 | -30,162 | ' | ' |
Property, Plant and Equipment, net | 0 | 0 | ' | ' |
Restricted Cash and Securities | 0 | 0 | ' | ' |
Goodwill and Other Intangibles Assets, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | 30,847 | 28,984 | ' | ' |
Other Assets, net | 0 | 0 | ' | ' |
Total Assets | -1,085 | -1,178 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accrued payroll and employee benefits | 0 | 0 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Current portion of deferred revenue | 0 | 0 | ' | ' |
Due to affiliates | -31,932 | -30,162 | ' | ' |
Other | 0 | 0 | ' | ' |
Total Current Liabilities | -31,932 | -30,162 | ' | ' |
Long-Term Debt, less current portion | 0 | 0 | ' | ' |
Deferred Revenue, less current portion | 0 | 0 | ' | ' |
Other Liabilities | 0 | 0 | ' | ' |
Commitments and Contingencies | 0 | ' | ' | ' |
Stockholders' Equity (Deficit) | 30,847 | 28,984 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | ($1,085) | ($1,178) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Statements of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | $327 | $178 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -571 | -545 |
Decrease in restricted cash and securities, net | 13 | 15 |
Proceeds from the sale of property, plant and equipment and other assets | 16 | 5 |
Other | -14 | -13 |
Net Cash Provided by (Used in) Investing Activities | -556 | -538 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 590 | 3,317 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -810 | -3,088 |
Proceeds from stock options exercised | 0 | 5 |
Increase (decrease) due from-to affiliates, net | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | -220 | 234 |
Effect of Exchange Rates on Cash and Cash Equivalents | -23 | 1 |
Net Change in Cash and Cash Equivalents | -472 | -125 |
Cash and Cash Equivalents at Beginning of Period | 979 | 918 |
Cash and Cash Equivalents at End of Period | 507 | 793 |
Level 3 Communications, Inc. | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -105 | -48 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | 0 | 0 |
Decrease in restricted cash and securities, net | 9 | 3 |
Proceeds from the sale of property, plant and equipment and other assets | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | 9 | 3 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 0 | 293 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -172 | 0 |
Proceeds from stock options exercised | ' | 5 |
Increase (decrease) due from-to affiliates, net | 24 | 41 |
Net Cash Provided by (Used in) Financing Activities | -148 | 339 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 |
Net Change in Cash and Cash Equivalents | -244 | 294 |
Cash and Cash Equivalents at Beginning of Period | 253 | 2 |
Cash and Cash Equivalents at End of Period | 9 | 296 |
Level 3 Financing, Inc. | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -441 | -442 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | 0 | 0 |
Decrease in restricted cash and securities, net | 0 | 0 |
Proceeds from the sale of property, plant and equipment and other assets | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | 0 | 0 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 590 | 3,024 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -607 | -2,960 |
Proceeds from stock options exercised | ' | 0 |
Increase (decrease) due from-to affiliates, net | 459 | 377 |
Net Cash Provided by (Used in) Financing Activities | 442 | 441 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 |
Net Change in Cash and Cash Equivalents | 1 | -1 |
Cash and Cash Equivalents at Beginning of Period | 5 | 6 |
Cash and Cash Equivalents at End of Period | 6 | 5 |
Level 3 Communications, LLC | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 298 | 80 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -235 | -199 |
Decrease in restricted cash and securities, net | 0 | 1 |
Proceeds from the sale of property, plant and equipment and other assets | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | -235 | -198 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 0 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -4 | 0 |
Proceeds from stock options exercised | ' | 0 |
Increase (decrease) due from-to affiliates, net | -156 | -285 |
Net Cash Provided by (Used in) Financing Activities | -160 | -285 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 |
Net Change in Cash and Cash Equivalents | -97 | -403 |
Cash and Cash Equivalents at Beginning of Period | 386 | 618 |
Cash and Cash Equivalents at End of Period | 289 | 215 |
Other Non-Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 575 | 588 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -336 | -346 |
Decrease in restricted cash and securities, net | 4 | 11 |
Proceeds from the sale of property, plant and equipment and other assets | 16 | 5 |
Other | -14 | -13 |
Net Cash Provided by (Used in) Investing Activities | -330 | -343 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 0 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -27 | -128 |
Proceeds from stock options exercised | ' | 0 |
Increase (decrease) due from-to affiliates, net | -327 | -133 |
Net Cash Provided by (Used in) Financing Activities | -354 | -261 |
Effect of Exchange Rates on Cash and Cash Equivalents | -23 | 1 |
Net Change in Cash and Cash Equivalents | -132 | -15 |
Cash and Cash Equivalents at Beginning of Period | 335 | 292 |
Cash and Cash Equivalents at End of Period | 203 | 277 |
Eliminations | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | 0 | 0 |
Decrease in restricted cash and securities, net | 0 | 0 |
Proceeds from the sale of property, plant and equipment and other assets | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | 0 | 0 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | 0 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | 0 | 0 |
Proceeds from stock options exercised | ' | 0 |
Increase (decrease) due from-to affiliates, net | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 |
Net Change in Cash and Cash Equivalents | 0 | 0 |
Cash and Cash Equivalents at Beginning of Period | 0 | 0 |
Cash and Cash Equivalents at End of Period | $0 | $0 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 04, 2013 | Oct. 04, 2013 | Oct. 04, 2013 | Oct. 30, 2013 | Oct. 30, 2013 | Oct. 04, 2013 | Oct. 04, 2013 | Oct. 04, 2013 | Oct. 04, 2013 |
Tranche B-II 2019 Term Loan | Tranche B-II 2019 Term Loan | 10% Senior Notes due 2018 | 10% Senior Notes due 2018 | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | |||||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | Level 3 Financing, Inc. | |||||||||
Tranche B-II 2019 Term Loan | Tranche B 2020 Term Loan add-on | Tranche B 2020 Term Loan new aggregate principal amount | 6.125% Senior Notes due 2021 | 10% Senior Notes due 2018 | Subsequent Event | Subsequent Event | Minimum | Minimum | |||||||||
Tranche B-II 2019 Term Loan | Tranche B 2020 Term Loan new aggregate principal amount | Subsequent Event | Subsequent Event | ||||||||||||||
Tranche B-II 2019 Term Loan | Tranche B 2020 Term Loan new aggregate principal amount | ||||||||||||||||
Subsequent Event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Refinanced debt amount | ' | ' | ' | ' | ' | ' | ' | ' | $1,200 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 | 1,796 | 640 | ' | ' | ' | ' | ' |
Basis (LIBOR) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' |
Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.00% | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | 4.75% | 4.75% | 10.00% | 10.00% | ' | ' | ' | 6.13% | 10.00% | ' | ' | 1.50% | 1.00% |
Upfront fee at closing | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' |
Loss on the refinancing | -17 | -49 | -17 | -110 | ' | ' | ' | ' | -10 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional debt discount costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | ' | ' | ' | ' | ' | ' |