Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
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-14 | ' |
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 | ' | 335,961,229 |
Document Fiscal Year Focus | '2014 | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue | $1,629 | $1,569 | $4,863 | $4,711 |
Costs and Expenses: | ' | ' | ' | ' |
Network Access Costs | 607 | 608 | 1,834 | 1,853 |
Network Related Expenses | 307 | 314 | 901 | 916 |
Depreciation and Amortization | 187 | 203 | 558 | 596 |
Selling, General and Administrative Expenses | 266 | 292 | 788 | 899 |
Total Costs and Expenses | 1,367 | 1,417 | 4,081 | 4,264 |
Operating Income | 262 | 152 | 782 | 447 |
Other Income (Expense): | ' | ' | ' | ' |
Interest Income, Other | 1 | 0 | 1 | 0 |
Interest expense | -159 | -165 | -459 | -501 |
Loss on modification and extinguishment of debt, net | 0 | -17 | 0 | -17 |
Other, net | -11 | 23 | -49 | -13 |
Total Other Expense | -169 | -159 | -507 | -531 |
Income (Loss) Before Income Taxes | 93 | -7 | 275 | -84 |
Income Tax Expense | -8 | -14 | -27 | -39 |
Net Income (Loss) | $85 | ($21) | $248 | ($123) |
Earnings Per Share, Basic | $0.36 | ($0.09) | $1.05 | ($0.56) |
Weighted Average Number of Shares Outstanding, Basic | 238,265 | 222,679 | 237,102 | 221,198 |
Earnings Per Share, Diluted | $0.35 | ($0.09) | $1.03 | ($0.56) |
Weighted Average Number of Shares Outstanding, Diluted | 242,464 | 222,679 | 241,458 | 221,198 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Income (Loss) | $85 | ($21) | $248 | ($123) |
Other Comprehensive Income (Loss) Before Income Taxes: | ' | ' | ' | ' |
Foreign Currency Translation Adjustment | -138 | 41 | -120 | -15 |
Other, net | 1 | 1 | 2 | -6 |
Other Comprehensive Income (Loss), Before Income Taxes | -137 | 42 | -118 | -21 |
Income Tax Related to Items of Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Income Taxes | -137 | 42 | -118 | -21 |
Comprehensive Income (Loss) | ($52) | $21 | $130 | ($144) |
Supplementary_Stockholders_Equ
Supplementary Stockholders' Equity Information, Changes in Accumulated Other Comprehensive Income (Loss) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Change In Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance | ($82) | $36 | $5 | $26 |
Balance | ($82) | $36 | $5 | $26 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $729 | $631 |
Restricted cash and securities | 1,020 | 7 |
Receivables, less allowances for doubtful accounts of $34 and $32, respectively | 678 | 673 |
Other | 173 | 143 |
Total Current Assets | 2,600 | 1,454 |
Property, Plant and Equipment, net of accumulated depreciation of $9,488 and $9,089, respectively | 8,268 | 8,240 |
Restricted Cash and Securities | 21 | 23 |
Goodwill | 2,570 | 2,577 |
Other Intangibles, net | 154 | 205 |
Other Assets, net | 370 | 375 |
Total Assets | 13,983 | 12,874 |
Liabilities and Stockholders' Equity: | ' | ' |
Accounts payable | 607 | 625 |
Current portion of long-term debt | 502 | 31 |
Accrued payroll and employee benefits | 165 | 209 |
Accrued interest | 184 | 160 |
Current portion of deferred revenue | 244 | 253 |
Other | 151 | 168 |
Total Current Liabilities | 1,853 | 1,446 |
Long-Term Debt, less current portion | 8,856 | 8,331 |
Deferred Revenue, less current portion | 877 | 906 |
Other Liabilities | 749 | 780 |
Total Liabilities | 12,335 | 11,463 |
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; 238,374,738 issued and outstanding at September 30, 2014 and 234,688,063 issued and outstanding at December 31, 2013 | 2 | 2 |
Additional paid-in capital | 14,446 | 14,339 |
Accumulated other comprehensive income | -82 | 36 |
Accumulated deficit | -12,718 | -12,966 |
Total Stockholdersb Equity | 1,648 | 1,411 |
Total Liabilities and Stockholdersb Equity | $13,983 | $12,874 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $34 | $32 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $9,488 | $9,089 |
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 | 238,374,738 | 234,688,063 |
Common stock, shares outstanding | 238,374,738 | 234,688,063 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net Income (Loss) | $248 | ($123) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 558 | 596 |
Non-cash compensation expense attributable to stock awards | 48 | 115 |
Loss on modification and extinguishment of debt, net | 0 | 17 |
Accretion of debt discount and amortization of debt issuance costs | 27 | 27 |
Accrued interest on long-term debt, net | 24 | -39 |
Non-cash tax adjustments | -9 | 0 |
Deferred income taxes | 2 | 0 |
Gain on sale of property, plant and equipment and other assets | -3 | -1 |
Other, net | -19 | -34 |
Changes in working capital items: | ' | ' |
Receivables | -25 | -34 |
Other current assets | -31 | -34 |
Payables | -35 | -152 |
Deferred revenue | -29 | -18 |
Other current liabilities | 9 | 7 |
Net Cash Provided by Operating Activities | 765 | 327 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -608 | -571 |
(Increase) decrease in restricted cash and securities, net | -10 | 13 |
Proceeds from Sale of Property, Plant, and Equipment and other assets | -3 | -16 |
Other | -2 | -14 |
Net Cash Used in Investing Activities | -617 | -556 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | -1 | 590 |
Payments on and repurchases of long-term debt, including current portion and refinancing costs | -8 | -810 |
Net Cash Provided by (Used in) Financing Activities | -9 | -220 |
Effect of Exchange Rates on Cash and Cash Equivalents | -41 | -23 |
Net Change in Cash and Cash Equivalents | 98 | -472 |
Cash and Cash Equivalents at Beginning of Period | 631 | 979 |
Cash and Cash Equivalents at End of Period | 729 | 507 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Cash interest paid | 408 | 513 |
Income taxes paid, net of refunds | 34 | 24 |
Long-Term Debt Issued and Proceeds Placed into Escrow | 1,000 | 0 |
Capital Lease Obligations Incurred | 2 | 13 |
Notes issued for property | $0 | $12 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies (Notes) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
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 an international 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. 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, 2013, which was derived from audited Consolidated Financial Statements, and the unaudited interim Consolidated Financial Statements as of September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 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, 2013. 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. | ||||||||||||
Property, Plant and Equipment | ||||||||||||
In connection with its periodic review of the estimated useful lives of property, plant and equipment, the Company may determine that the period it expects to use certain assets is longer than the remaining originally estimated useful lives. The Company completed its most recent evaluation in the first quarter 2014 and revised its estimated useful lives for: IP equipment from its historical estimate of four years to a revised estimate of seven years; racks and cabinets from its historical estimate of seven years to a revised estimate of 15 years; and facility equipment from its historical estimate of 10 years to its revised estimate of 15 years. In determining the change in estimated useful lives, the Company, with input from its engineering team, considered its historical usage patterns and retirements, estimates of technological obsolescence and expected usage and maintenance. The change in the estimated useful lives of the Company’s property, plant and equipment was accounted for as a change in accounting estimate on a prospective basis effective January 1, 2014 under the accounting standard related to changes in accounting estimates. | ||||||||||||
The carrying values of assets subject to these revisions were (in millions): | ||||||||||||
1-Jan-14 | ||||||||||||
IP Equipment | $ | 222 | ||||||||||
Racks and Cabinets | 114 | |||||||||||
Facility Equipment | 151 | |||||||||||
$ | 487 | |||||||||||
The change in estimated useful lives of the Company’s property, plant and equipment resulted in less depreciation expense than would have otherwise been recorded and in the following increase in net income and net income per share for the nine months ended September 30, 2014 (in millions, except per share amounts): | ||||||||||||
Net Income | $ | 75 | ||||||||||
Basic Net Income per Share | $ | 0.32 | ||||||||||
Diluted Net Income per Share | $ | 0.31 | ||||||||||
Recently Issued Accounting Pronouncements | ||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued operations criteria. Under the new guidance, a discontinued operation is defined as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The revised guidance will affect the way entities identify and disclose information about disposal transactions and is effective prospectively for fiscal years beginning after December 15, 2014, 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. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2016, and interim periods within those years. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its Consolidated Financial Statements and related disclosures and has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | ||||||||||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which explicitly requires management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The new standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. | ||||||||||||
Disaggregation of Network Related Expenses; Change in Description of Cost of Revenue to Network Access Costs | ||||||||||||
Historically, the Company has included "network related expenses" including facility rent, utilities, maintenance and other costs, each related to the operation of Level 3's communications network, as well as salaries, wages and related benefits (including non-cash stock-based compensation expenses) associated with personnel who are responsible for the delivery of services as well as operation and maintenance of its communications network, and accretion expense on asset retirement obligations, but excluding depreciation and amortization, within the line item "Selling, General and Administrative Expenses" in its Consolidated Statement of Operations. Beginning with the third quarter 2014, these network related expenses will be reported under a separate line item, “Network Related Expenses,” in the Company’s Consolidated Statement of Operations. Beginning with the third quarter 2014, “Selling General and Administrative Expenses” include the salaries, wages and related benefits (including non-cash, stock-based compensation expenses) and the related costs of corporate and sales personnel, travel, insurance, non-network related rent, advertising and other administrative expenses. | ||||||||||||
In addition, the Company has changed the description of “Cost of Revenue” in its Consolidated Statement of Operations to “Network Access Costs.” Network Access Costs include leased capacity costs, right-of-way costs, access charges, satellite transponder lease costs and other third party costs directly attributable to providing access to customer locations from the Level 3 network. Network Access Costs exclude Network Related Expenses, and depreciation and amortization. Network Access Costs do not include any employee expenses or impairment expenses; these expenses are allocated to Network Related Expenses or Selling, General and Administrative Expenses. | ||||||||||||
The changes outlined above do not affect the Company’s previously reported Consolidated Total Costs and Expenses, Operating Income, Net Loss or Loss per Share in the Consolidated Statement of Operations, or any items reported in the Consolidated Balance Sheets, Consolidated Statements of Comprehensive Loss, Cash Flows or Changes in Stockholders’ Equity (Deficit). | ||||||||||||
The following table reflects on an unaudited basis the change of the description of "Cost of Revenue" to "Network Access Costs" and the disaggregation of "Network Related Expenses" from "Selling, General and Administrative Expenses" for the three and nine months ended September 30, 2013 in the Consolidated Statements of Operations, assuming the changes discussed above were in effect for the entire period reported below. | ||||||||||||
(dollars in millions) | As Previously Reported | Adjustment | Revised Reporting (1) | |||||||||
Three Months Ended September 30, 2013 | ||||||||||||
Cost of Revenue | $ | 608 | $ | (608 | ) | $ | — | |||||
Network Access Costs | — | 608 | 608 | |||||||||
Network Related Expenses | — | 314 | 314 | |||||||||
Selling, General and Administrative Expenses | 606 | (314 | ) | 292 | ||||||||
Total Costs and Expenses | 1,417 | — | 1,417 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||
Cost of Revenue | $ | 1,853 | $ | (1,853 | ) | $ | — | |||||
Network Access Costs | — | 1,853 | 1,853 | |||||||||
Network Related Expenses | — | 916 | 916 | |||||||||
Selling, General and Administrative Expenses | 1,815 | (916 | ) | 899 | ||||||||
Total Costs and Expenses | 4,264 | — | 4,264 | |||||||||
(1) The description of "Cost of Revenue" has been changed to "Network Access Costs" and the presentation of "Network Related Expenses" has been disaggregated from "Selling, General and Administrative Expenses" in the Consolidated Statements of Operations for the three and nine months ended September 30, 2013. | ||||||||||||
As a result of the above, the Company also revised the Condensed Consolidating Statements of Operations for the three and nine months ended September 30, 2013 in Note 11 — Condensed Consolidating Financial Information. |
Events_Associated_with_the_Mer
Events Associated with the Merger of tw telecom (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||
Events Associated with the Merger of tw telecom inc. | |||||||||||||||||
On October 31, 2014, the Company and two of its subsidiaries completed the merger with tw telecom inc. (“tw telecom”) and tw telecom became a wholly owned subsidiary of the Company through a tax-free, stock and cash reorganization (the "Merger"). As a result of the Merger, (1) each issued and outstanding share of common stock of tw telecom was exchanged for 0.7 shares of Level 3 common stock and $10 in cash ( together the "merger consideration"); (2) the outstanding stock options were canceled and the holders received the merger consideration, net of aggregate per share exercise price; (3) each restricted stock unit award was canceled and the holders received the merger consideration; and (4) each restricted stock unit was immediately vested and canceled and holders received the merger consideration. | |||||||||||||||||
In connection with the closing of the Merger, Level 3 Financing amended its existing credit agreement to incur an additional $2 billion of borrowings through an additional Tranche (the "Tranche B 2022 Term Loan"). The aggregate net proceeds of Level 3 Financing's Tranche B 2022 Term Loan issued in October 2014 were used to finance the cash portion of the merger consideration payable to tw telecom's stockholders and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of the Merger (see Note 6 — Long-Term Debt for additional information). In addition, the $1.0 billion of proceeds from the issuance of 5.375% Senior Notes due 2022 raised in August 2014 (see Note 6 — Long-Term Debt) by an indirect, wholly owned subsidiary were deposited into an escrow account. On October 31, 2014, following the consummation of the Merger and the satisfaction of certain escrow release conditions, the 5.375% Senior Notes were assumed by Level 3 Financing and the funds were released from the escrow account. The net proceeds from the 5.375% Senior Notes were used to finance the cash portion of the merger consideration payable to tw telecom stockholders and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of the Merger. | |||||||||||||||||
On October 30, 2014, the Company increased the number of authorized shares of common stock by 100,000,000 shares to 433,333,333. As a result of the Merger, the Company issued approximately 96.9 million shares of Level 3 common stock to former holders of tw telecom common shares, stock options, restricted stock awards and restricted stock units. In addition, Level 3 called for redemption and discharged or repaid approximately $1.793 billion of tw telecom's outstanding consolidated debt. The shares of tw telecom common stock, which previously traded under the symbol "TWTC", ceased trading on the NASDAQ Global Select Market ("NASDAQ") at the close of trading on October 31, 2014 and were delisted from NASDAQ as of October 31, 2014. | |||||||||||||||||
Based on the number of Level 3 shares issued, Level 3's closing stock price of $46.91 on October 31, 2014, the cash paid to the former holders of tw telecom common stock and the $1.793 billion of debt of tw telecom called for redemption and discharged or repaid, the aggregate consideration for acquisition accounting, including assumed debt, approximated $8.1 billion. | |||||||||||||||||
The premium paid by Level 3 in this transaction is attributable to strategic benefits, as the transaction further solidifies Level 3's position as a premier global communications provider to the enterprise, government and carrier market, combining tw telecom's extensive local operations and assets in North America with Level 3's global assets and capabilities. tw telecom's business model is directly aligned with Level 3's initiatives for growth, which include building managed solutions to meet customer needs through an advanced IP/optical network. | |||||||||||||||||
The goodwill associated with this transaction is not expected to be deductible for income tax purposes. | |||||||||||||||||
The assets acquired and liabilities assumed of tw telecom will be recognized at their acquisition date fair value, however, based on the acquisition date of October 31, 2014, the summary of assets acquired and liabilities assumed are not available at the time of this filing. The purchase price allocation of acquired assets and assumed liabilities, including the assignment of goodwill to reporting units, will require extensive analysis and is expected to be completed no later than October 31, 2015. A preliminary allocation of the purchase price to intangible assets has been used to determine the adjustment to the pro forma operating results below. The final identification of all intangible assets acquired may be significantly different from the preliminary allocation. | |||||||||||||||||
The following unaudited pro forma financial information presents the combined results of Level 3 and tw telecom as if the completion of the merger had occurred as of January 1, 2013 (dollars in millions, except per share data). | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep-14 | 30-Sep-13 | 30-Sep-14 | 30-Sep-13 | ||||||||||||||
Total Revenue | $ | 2,047 | $ | 1,955 | $ | 6,096 | $ | 5,854 | |||||||||
Net Income (Loss) | $ | 72 | $ | (67 | ) | $ | 199 | $ | (212 | ) | |||||||
Net Income (Loss) per Share - Basic | $ | 0.22 | $ | (0.21 | ) | $ | 0.6 | $ | (0.67 | ) | |||||||
Net Income (Loss) per Share- Diluted | $ | 0.21 | $ | (0.21 | ) | $ | 0.59 | $ | (0.67 | ) | |||||||
These pro forma results include certain adjustments, primarily due to increases in depreciation and amortization expense due to fair value adjustments of tangible and intangible assets, increases in interest expense due to Level 3's issuance of incremental debt to finance cash consideration partially offset by the refinancing of tw telecom debt that had higher interest rates than the incremental financing, and to eliminate historical transactions between Level 3 and tw telecom. The pro forma information is not intended to represent or be indicative of the actual results of operations of Level 3 that would have been reported had the Merger been completed on January 1, 2013, nor is it representative of future operating results of the Company. The pro forma information does not include any operating efficiencies or cost savings that Level 3 may achieve with respect to combining the companies. | |||||||||||||||||
Acquisition related costs include transaction costs such as legal, accounting, valuation and other professional services as well as integration costs such as severance and retention. Acquisition related costs have been recorded in Network Related Expenses and Selling, General and Administrative Expenses in the Company's Consolidated Statements of Operations. Level 3 incurred total acquisition related transaction and integration costs of approximately $11 million through September 30, 2014. Level 3 estimates that total acquisition related transaction costs will be approximately $82 million. In addition, Level 3 expects to incur $170 million of integration related costs in 2014 and 2015. | |||||||||||||||||
Level 3 also adopted an amendment to its existing Stockholder Rights Plan to extend the term of that plan. The plan is designed to protect its U.S. federal net operating losses from certain Internal Revenue Code Section 382 limitations. The plan was designed to deter trading that would result in a change of control (as defined in that Code Section), and thereby protect the Company's ability to use its historical federal net operating loss carryforwards in the future. |
Earnings_Per_Share_Notes
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share | ' |
Per Share | |
The Company computes basic earnings per share by dividing net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income or 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 18 million and 28 million shares issuable pursuant to the various series of convertible notes outstanding at September 30, 2014 and September 30, 2013, respectively, have not been included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive to the computation. The effect of approximately 5 million stock options, outperform stock appreciation rights ("OSOs"), and restricted stock units ("RSUs") outstanding at September 30, 2014 have been included in the computation of diluted earnings per share. The effect of approximately 6 million stock options, OSOs and RSUs outstanding at September 30, 2013 have not been included in the computation of diluted earnings 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, 2014 | ||||||||||||
Acquired Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Acquired Intangible Assets | ' | |||||||||||
Acquired Intangible Assets | ||||||||||||
Identifiable acquisition-related intangible assets as of September 30, 2014 and December 31, 2013 were as follows (dollars in millions): | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | |||||||||||
Amount | ||||||||||||
September 30, 2014 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 785 | $ | (708 | ) | $ | 77 | |||||
Trademarks | 55 | (41 | ) | 14 | ||||||||
Patents and Developed Technology | 158 | (127 | ) | 31 | ||||||||
998 | (876 | ) | 122 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,030 | $ | (876 | ) | $ | 154 | ||||||
December 31, 2013 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 786 | $ | (678 | ) | $ | 108 | |||||
Trademarks | 55 | (31 | ) | 24 | ||||||||
Patents and Developed Technology | 158 | (117 | ) | 41 | ||||||||
999 | (826 | ) | 173 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,031 | $ | (826 | ) | $ | 205 | ||||||
Acquired finite-lived intangible asset amortization expense was $14 million and $50 million for the three and nine months ended September 30, 2014 and $18 million and $54 million for the three and nine months ended September 30, 2013. | ||||||||||||
At September 30, 2014, the weighted average remaining useful lives of the Company's acquired finite-lived intangible assets was 3.3 years for customer contracts and relationships, 2.2 years for trademarks and 1.0 year for patents and developed technology. | ||||||||||||
As of September 30, 2014, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years is as follows (dollars in millions): | ||||||||||||
2014 (remaining 3 months) | $ | 13 | ||||||||||
2015 | 48 | |||||||||||
2016 | 30 | |||||||||||
2017 | 15 | |||||||||||
2018 | 13 | |||||||||||
2019 | 3 | |||||||||||
$ | 122 | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (Notes) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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, 2014 and December 31, 2013. The Company's interest rate swaps, which were extinguished in the first quarter of 2014, had been recorded in the Consolidated Balance Sheets at fair value. | |||||||||||||||||||||||||
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 Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period. There were no transfers within the fair value hierarchy during each of the nine months ended September 30, 2014 and September 30, 2013. | |||||||||||||||||||||||||
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, 2014 and December 31, 2013: | |||||||||||||||||||||||||
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, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Liabilities Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Interest Rate Swap Liabilities (included in other current liabilities) | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | 12 | |||||||||||||
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | 12 | |||||||||||||
Liabilities Not Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Long-term Debt, including the current portion: | |||||||||||||||||||||||||
Term Loans | $ | 2,605 | $ | 2,604 | $ | 2,563 | $ | 2,633 | $ | — | $ | — | |||||||||||||
Senior Notes | 6,200 | 5,198 | 5,531 | 5,673 | — | — | |||||||||||||||||||
Convertible Notes | 475 | 474 | — | — | 818 | 647 | |||||||||||||||||||
Capital Leases and Other | 78 | 86 | — | — | 78 | 86 | |||||||||||||||||||
Total Long-term Debt, including the current portion | $ | 9,358 | $ | 8,362 | $ | 8,094 | $ | 8,306 | $ | 896 | $ | 733 | |||||||||||||
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 was 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, 2014 and December 31, 2013, respectively. The fair value of each loan is based on quoted prices for identical terms and maturities. Each loan tranche is actively traded. | |||||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||
The fair value of the Senior Notes referenced above was approximately $5.5 billion at September 30, 2014 and $5.7 billion at December 31, 2013, 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 Convertible Notes was approximately $818 million and $647 million at September 30, 2014 and December 31, 2013, respectively. The estimated fair value of the Convertible Notes 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, convertible optionality, corporate and security credit ratings, maturity date, 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. | |||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||
The fair value of the Company's capital leases are determined by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. |
LongTerm_Debt_Notes
Long-Term Debt (Notes) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
Long-Term Debt | |||||||||
As of September 30, 2014 and December 31, 2013, long-term debt was as follows: | |||||||||
(dollars in millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Senior Secured Term Loan* | $ | 2,611 | $ | 2,611 | |||||
Floating Rate Senior Notes due 2018 (3.823% as of September 30, 2014 and 3.846% as of December 31, 2013) | 300 | 300 | |||||||
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 | |||||||
6.125% Senior Notes due 2021 | 640 | 640 | |||||||
5.375% Senior Notes due 2022 | 1,000 | — | |||||||
7% Convertible Senior Notes due 2015 | 200 | 200 | |||||||
7% Convertible Senior Notes due 2015 Series B | 275 | 275 | |||||||
Capital Leases | 66 | 73 | |||||||
Other | 12 | 13 | |||||||
Total Debt Obligations | 9,384 | 8,392 | |||||||
Unamortized Discount: | |||||||||
Discount on Senior Secured Term Loan | (6 | ) | (7 | ) | |||||
Discount on 11.875% Senior Notes due 2019 | (7 | ) | (8 | ) | |||||
Discount on 9.375% Senior Notes due 2019 | (7 | ) | (7 | ) | |||||
Discount on 8.125% Senior Notes due 2019 | (6 | ) | (7 | ) | |||||
Discount on 7% Convertible Senior Notes due 2015 | — | (1 | ) | ||||||
Total Unamortized Discount | (26 | ) | (30 | ) | |||||
Carrying Value of Debt | 9,358 | 8,362 | |||||||
Less current portion | (502 | ) | (31 | ) | |||||
Long-term Debt, less current portion | $ | 8,856 | $ | 8,331 | |||||
* The $815 million Tranche B-III 2019 Term Loan due 2019 and the $1.796 billion Tranche B 2020 Term Loan due 2020 each had an interest rate of 4.00% as of September 30, 2014 and December 31, 2013. | |||||||||
2014 Debt Issuances and Registrations | |||||||||
5.375% Senior Notes due 2022 | |||||||||
In August 2014, Level 3 Escrow II, Inc. (“Level 3 Escrow”), an indirect, wholly owned subsidiary of Level 3 Communications, Inc., issued $1.0 billion in aggregate principal amount of its 5.375% Senior Notes due 2022 (the “5.375% Senior Notes”). As a result of certain conditions that could have required Level 3 Escrow to redeem the notes on or before June 15, 2015, discussed further below, the initial term of the 5.375% Senior Notes was deemed to be through June 2015. When the contingency was resolved on October 31, 2014, the Company reclassified these notes into long-term debt in the accompanying Consolidated Balance Sheet as of September 30, 2014. The 5.375% Senior Notes will mature on August 15, 2022. Interest on the 5.375% Senior Notes is payable on May 15 and November 15 of each year, beginning on November 15, 2014. Debt issuance costs of approximately $17 million were capitalized and are amortized over the term of the loan. | |||||||||
The gross proceeds from the offering of the 5.375% Senior Notes were deposited into a segregated escrow account and were to remain in escrow until the date of the satisfaction of certain escrow conditions including, but not limited to, the substantially concurrent consummation of the acquisition by Level 3 of tw telecom pursuant to the Merger and the assumption of the 5.375% Senior Notes by Level 3 Financing, Inc. (the “Notes Assumption”). In conjunction with the completion of the Merger on October 31, 2014 (see Note 2 — Events Associated with the Merger of tw telecom), the escrow conditions were satisfied. Following the Notes Assumption, Level 3 and Level 3 Communications, LLC guaranteed the 5.375% Senior Notes on an unsecured basis. Following the release of the escrowed funds in connection with the Notes Assumption, the escrowed funds were used to finance the cash portion of the merger consideration payable to tw telecom stockholders and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of the Merger. | |||||||||
The 5.375% Senior Notes are subject to redemption at the option of Level 3 Financing, in whole or in part, at any time or from time to time, upon not less than 30 nor more than 60 days’ prior notice, (i) prior to August 15, 2017, at 100% of the principal amount of 5.375% Senior Notes so redeemed plus (A) the applicable make-whole premium set forth in the Indenture, as of the redemption date and (B) accrued and unpaid interest thereon (if any) up to, but not including, the redemption date, and (ii) on and after August 15, 2017, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) up to, but not including the redemption date, if redeemed during the twelve months beginning August 15, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2017 | 102.688 | % | |||||||
2018 | 101.344 | % | |||||||
2019 | 100 | % | |||||||
At any time or from time to time after the Notes Assumption and on or prior to August 15, 2017, Financing may redeem up to 40% of the original aggregate principal amount of the 5.375% Senior Notes at a redemption price equal to 105.375% of the principal amount of the 5.375% Senior Notes so redeemed, plus accrued and unpaid interest thereon (if any) up to, but not including the redemption date, with the net cash proceeds contributed to Financing of one or more private placements to persons other than affiliates of Level 3 or underwritten public offerings of common stock of Level 3 resulting, in each case, in gross proceeds of at least $100 million in the aggregate. However, at least 60% of the original aggregate principal amount of the 5.375% Senior Notes must remain outstanding immediately after giving effect to such redemption. Any such redemption shall be made within 90 days following such private placement or public offering upon not less than 30 nor more than 60 days’ prior notice. | |||||||||
The offering of the 5.375% Senior Notes were not originally registered under the Securities Act of 1933, as amended, and the 5.375% Senior Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The 5.375% Senior Notes were sold to persons reasonably believed to be “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, as amended. The registration rights agreement became effective as of October 31, 2014. | |||||||||
In October 2014, Level 3 Financing, Inc. received commitments from lenders to increase the borrowings under its existing senior secured credit facility through the creation of a new $2 billion Tranche B 2022 Term Loan (the "Tranche B 2022 Term Loan"). The borrowing was completed with the close of the acquisition of tw telecom on October 31, 2014. The Tranche B 2022 Term Loan included an up front payment to the Tranche B 2022 Term Loan lenders of 0.75 percent of par, will pay interest equal to LIBOR plus 3.5 percent with LIBOR set at a minimum of 1.0 percent and mature on January 31, 2022. | |||||||||
Upon closing of the Tranche B 2022 Term Loan, Level 3 Financing, Inc. used the gross proceeds to finance the cash portion of the merger consideration payable to tw telecom's stockholders under the Merger Agreement and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of that acquisition. See Note 2 — Events Associated with the Merger of tw telecom for additional information. | |||||||||
During the fourth quarter of 2014, the Floating Rate Senior Notes due 2018 issued by Level 3 Financing, Inc. in November 2013 were exchanged for a new issue of Floating Rate Senior Notes due 2018 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. The Floating Rate Senior Notes due 2018 are guaranteed by Level 3 Communications, Inc. and Level 3 Communications, LLC. | |||||||||
During the fourth quarter of 2014, the 6.125% Senior Notes due 2021 issued by Level 3 Financing, Inc. in November 2013 were exchanged for a new issue of 6.125% Senior Notes due 2021 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. The 6.125% Senior Notes due 2021 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, 2014 (dollars in millions): | |||||||||
2014 (remaining three months) | $ | 22 | |||||||
2015 | 483 | ||||||||
2016 | 7 | ||||||||
2017 | 6 | ||||||||
2018 | 306 | ||||||||
2019 | 3,426 | ||||||||
Thereafter | 5,134 | ||||||||
$ | 9,384 | ||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Statement of Comprehensive Income [Abstract] | ' | ||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The accumulated balances for each classification of other comprehensive income (loss) were as follows: | |||||||||||||
(dollars in millions) | Net Foreign Currency Translation Adjustment | Defined Benefit Pension Plans | Total | ||||||||||
Balance at December 31, 2012 | $ | 56 | $ | (30 | ) | $ | 26 | ||||||
Other comprehensive (loss) before reclassifications | (15 | ) | (9 | ) | (24 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 3 | 3 | ||||||||||
Balance at September 30, 2013 | $ | 41 | $ | (36 | ) | $ | 5 | ||||||
Balance at December 31, 2013 | $ | 67 | $ | (31 | ) | $ | 36 | ||||||
Other comprehensive (loss) before reclassifications | (120 | ) | (2 | ) | (122 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 4 | 4 | ||||||||||
Balance at September 30, 2014 | $ | (53 | ) | $ | (29 | ) | $ | (82 | ) | ||||
StockBased_Compensation_Notes
Stock-Based Compensation (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Outperform Stock Options | $ | 2 | $ | 2 | $ | 6 | $ | 18 | ||||||||
Restricted Stock Units and Shares | 10 | 10 | 22 | 31 | ||||||||||||
Performance Restricted Stock Units | 4 | — | 7 | — | ||||||||||||
401(k) Match Expense | 6 | 6 | 18 | 19 | ||||||||||||
Restricted Stock Unit Bonus Grant | — | 12 | (5 | ) | 41 | |||||||||||
Management Incentive and Retention Plan | — | 1 | — | 7 | ||||||||||||
22 | 31 | 48 | 116 | |||||||||||||
Capitalized Non-Cash Compensation | — | (1 | ) | — | (1 | ) | ||||||||||
$ | 22 | $ | 30 | $ | 48 | $ | 115 | |||||||||
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, 2014, there were approximately 2 million outperform Stock Options ("OSOs") outstanding. As of September 30, 2014, there were approximately 4 million non-vested restricted stock, restricted stock units ("RSUs") and performance restricted stock units ("PRSUs") outstanding. The Company's Management Incentive and Retention Plan was completed in the first quarter 2014. In addition, as of September 30, 2014, there were approximately 9 thousand non-qualified stock options outstanding. | ||||||||||||||||
Effective April 2014, the Company's Board of Directors approved the Restricted Stock Unit and Performance Restricted Stock Unit Master Award Agreement ("the Agreement"), which provides for the ability to award participants PRSUs instead of the historical award of OSOs. While OSOs that were granted prior to 2014 will remain outstanding until their settlement, no additional OSOs will be granted. PRSUs are designed to provide participants with a long-term stake in the Company’s success with both retention and performance components. Under the Agreement, a participant becomes vested in a number of PRSUs based on the Company's achievement of specified levels of financial performance during the performance period set forth in the applicable award letter issued pursuant to the Agreement, so long as the participant remains continuously employed by the Company until the applicable scheduled vesting date, subject to certain change in control provisions as outlined in the Agreement. The performance objective is based on the Company’s financial performance measures. Participants will be entitled to an award within a range of 50% at a minimum achievement level and 200% at a maximum achievement level. |
Segment_Information_Notes
Segment Information (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting Information [Line Items] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
Operating segments are defined under GAAP as components of an enterprise for which separate financial information is available and evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. The Company's reportable segments consist of 1) North America, 2) Europe, the Middle East and Africa (EMEA), 3) and Latin America. Other separate business interests that are not segments include interest, certain corporate assets and overhead costs, and certain other general and administrative costs that are not allocated to any of the operating segments. | |||||||||||||||||
The CODM measures and evaluates segment performance primarily based upon revenue, revenue growth and Adjusted EBITDA. Adjusted EBITDA, as defined by the Company, is equal to net income (loss) from the Consolidated Statements of Operations before (1) income tax benefit (expense), (2) total other income (expense), (3) non-cash impairment charges included within network related expenses and selling, general and administrative expenses, (4) depreciation and amortization expense, and (5) non-cash stock compensation expense included within network related expenses and selling, general and administrative expenses. | |||||||||||||||||
Adjusted EBITDA is not a measurement under GAAP and may not be used in the same way by other companies. Management believes that Adjusted EBITDA is an important part of the Company's internal reporting and is a key measure used by management to evaluate profitability and operating performance of the Company and to make resource allocation decisions. Management believes such measurement is especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA to compare the Company's performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses. | |||||||||||||||||
Adjusted EBITDA excludes non-cash impairment charges and non-cash stock compensation expense because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income tax benefit (expense) because these items are associated with the Company's capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the effect of capital investments which management believes are better evaluated through cash flow measures. Adjusted EBITDA excludes net other income (expense) because these items are not related to the primary operations of the Company. | |||||||||||||||||
There are limitations to using non-GAAP financial measures such as Adjusted EBITDA, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from the Company's calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income tax benefit (expense), depreciation and amortization expense, non-cash impairment charges, non-cash stock compensation expense, and net other income (expense). Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP. | |||||||||||||||||
Revenue and the related expenses are attributed to regions based on where services are provided. Revenue and costs for services provided in more than one region are allocated ratably between the regions, and the Company does not otherwise charge for services between reportable segments. Therefore, segment results do not include any intercompany revenue. The operating activities of the separate regions along with the activities that are not attributable to a segment are interdependent, and the regional results in the tables below do not include all intercompany charges and allocations that would be necessary to report the regional results on a standalone basis. | |||||||||||||||||
Total revenue consists of: | |||||||||||||||||
• | Core Network Services revenue from colocation and data center services; transport and fiber; IP and data services; and local and enterprise voice services. | ||||||||||||||||
• | Wholesale Voice Services and Other revenue from sales to other carriers of long distance voice services. | ||||||||||||||||
Core Network Services revenue represents higher profit services and Wholesale Voice Services and Other revenue represents lower profit services. Core Network Services revenue requires different levels of investment and focus and provides different contributions to the Company's operating results than Wholesale Voice Services and Other revenue. Management of the Company believes that growth in revenue from its Core Network Services is critical to the long-term success of its business. The Company also believes it must continue to effectively manage the contribution from the Wholesale Voice Services and Other component. The Company believes that trends in its communications business are best gauged by analyzing revenue changes in Core Network Services. | |||||||||||||||||
The following table presents revenue by segment: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Core Network Services Revenue: | |||||||||||||||||
North America | $ | 1,063 | $ | 987 | $ | 3,157 | $ | 2,924 | |||||||||
EMEA | 219 | 222 | 673 | 665 | |||||||||||||
Latin America | 200 | 188 | 588 | 559 | |||||||||||||
Total Core Network Services Revenue | 1,482 | 1,397 | 4,418 | 4,148 | |||||||||||||
Wholesale Voice Services and Other Revenue: | |||||||||||||||||
North America | 128 | 162 | 410 | 530 | |||||||||||||
EMEA | 4 | 8 | 14 | 25 | |||||||||||||
Latin America | 15 | 2 | 21 | 8 | |||||||||||||
Total Wholesale Voice Services and Other Revenue | 147 | 172 | 445 | 563 | |||||||||||||
Total Consolidated Revenue | $ | 1,629 | $ | 1,569 | $ | 4,863 | $ | 4,711 | |||||||||
The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to consolidated net income (loss): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | 30-Sep-14 | 30-Sep-13 | |||||||||||||
Adjusted EBITDA: | |||||||||||||||||
North America | $ | 492 | $ | 447 | $ | 1,460 | $ | 1,309 | |||||||||
EMEA | 57 | 56 | 167 | 171 | |||||||||||||
Latin America | 92 | 77 | 264 | 226 | |||||||||||||
Unallocated Corporate Expenses | (170 | ) | (195 | ) | (503 | ) | (548 | ) | |||||||||
Consolidated Adjusted EBITDA | 471 | 385 | 1,388 | 1,158 | |||||||||||||
Income Tax Expense | (8 | ) | (14 | ) | (27 | ) | (39 | ) | |||||||||
Total Other Expense | (169 | ) | (159 | ) | (507 | ) | (531 | ) | |||||||||
Depreciation and Amortization | (187 | ) | (203 | ) | (558 | ) | (596 | ) | |||||||||
Non-Cash Stock Compensation | (22 | ) | (30 | ) | (48 | ) | (115 | ) | |||||||||
Total Consolidated Net Income (Loss) | $ | 85 | $ | (21 | ) | $ | 248 | $ | (123 | ) | |||||||
The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Capital Expenditures: | |||||||||||||||||
North America | $ | 116 | $ | 105 | $ | 318 | $ | 305 | |||||||||
EMEA | 34 | 33 | 82 | 102 | |||||||||||||
Latin America | 35 | 35 | 106 | 88 | |||||||||||||
Unallocated Corporate Capital Expenditures | 19 | 21 | 102 | 76 | |||||||||||||
Consolidated Capital Expenditures | $ | 204 | $ | 194 | $ | 608 | $ | 571 | |||||||||
The following table presents total consolidated assets by segment: | |||||||||||||||||
(dollars in millions) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Assets: | |||||||||||||||||
North America | $ | 9,321 | $ | 8,133 | |||||||||||||
EMEA | 1,963 | 2,030 | |||||||||||||||
Latin America | 2,437 | 2,445 | |||||||||||||||
Other | 262 | 266 | |||||||||||||||
Total Consolidated Assets | $ | 13,983 | $ | 12,874 | |||||||||||||
Commitments_Contingencies_and_
Commitments, Contingencies and Other Items (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
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 $191 million and are included in “Other” current liabilities and “Other Liabilities” in the Company's Consolidated Balance Sheet at September 30, 2014. 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, 2014. 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, including payments of claims. 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 $57 million at September 30, 2014. | |
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 with the Tribunal Fiscal, the highest level of administrative review, which is not part of the Peru judiciary (the "Tribunal"). The 2001 and 2002 assessed withholding tax assessments were resolved in favor of the Company in separate administrative resolutions; however, the penalties with respect to withholding tax remain at issue in the administrative appeals. | |
In October 2011, the Tribunal issued its administrative resolution with respect to the calendar year 2002 tax period regarding VAT, associated penalties and penalties associated with withholding taxes, deciding 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. The Company appealed the Tribunal's October 2011 administrative resolutions to the judicial court in Peru. In September 2014, the first judicial court rendered a decision largely in the Company’s favor on the central issue underlying the assessments. The Company expects SUNAT to appeal the court’s decision to the next judicial level. | |
During the fourth quarter of 2013, the Company released a reserve of $28 million for tax, penalty and associated interest related to calendar year 2002 due to the expiration of the statute of limitations. In October 2013, the Tribunal notified the Company of its July 2013 administrative resolution with respect to the calendar year 2001 tax period regarding VAT, associated penalties and penalties associated with withholding taxes, determining 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. The Company has appealed the Tribunal's July 2013 administrative resolutions to the judicial court in Peru. | |
In December 2013, SUNAT initiated an audit of calendar year 2001. In June 2014, the Company was served with SUNAT’s assessments of the 2001 amounts declared null by the Tribunal. In July 2014, the Company appealed these assessments with SUNAT. | |
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 $43 million at September 30, 2014. | |
Brazilian Tax Claims | |
In December 2004, March 2009, April 2009 and July 2014, 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, March 2009 and July 2014 assessments) and revenue from the provision of Internet access services (in the case of the April 2009 and July 2014 assessments), by treating such activities as the provision of communications services, to which the ICMS tax applies. During the third quarter of 2014, the Company released a reserve of $6 million for tax, penalty and associated interest corresponding to the ICMS applicable on the provision of Internet access services due to the expiration of the statute of limitations for the January 2008 to June 2009 tax periods. 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 September 2002, December 2004 and March 2009 assessments were rejected by the respective state administrative courts, and the Company has appealed those decisions to the judicial courts. In October 2012 and June 2014, the Company received favorable rulings from the lower court on the December 2004 and March 2009 assessments regarding equipment leasing, but those rulings are subject to appeal by the state. No ruling has been obtained with respect to the September 2002 assessment. The objections to the April and July 2009 and May 2012 assessments are still pending final administrative decisions. The objection to the July 2014 assessment is pending first administrative decision. | |
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 $59 million in excess of the accruals established for these matters as of September 30, 2014. | |
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, 2014 and December 31, 2013, Level 3 had outstanding letters of credit or other similar obligations of approximately $26 million and $29 million, respectively, of which $22 million and $25 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, 2014 | ||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Information (as revised) | ||||||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 781 | $ | 901 | $ | (53 | ) | $ | 1,629 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Network Access Costs | — | — | 291 | 369 | (53 | ) | 607 | |||||||||||||||||
Network Related Expenses | — | — | 195 | 112 | — | 307 | ||||||||||||||||||
Depreciation and Amortization | — | — | 70 | 117 | — | 187 | ||||||||||||||||||
Selling, General and Administrative Expenses | 6 | — | 181 | 79 | — | 266 | ||||||||||||||||||
Total Costs and Expenses | 6 | — | 737 | 677 | (53 | ) | 1,367 | |||||||||||||||||
Operating Income (Loss) | (6 | ) | — | 44 | 224 | — | 262 | |||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (34 | ) | (112 | ) | (1 | ) | (12 | ) | — | (159 | ) | |||||||||||||
Interest income (expense) affiliates, net | 314 | 452 | (730 | ) | (36 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (189 | ) | (528 | ) | 162 | — | 555 | — | ||||||||||||||||
Other, net | — | — | 2 | (13 | ) | — | (11 | ) | ||||||||||||||||
Total Other Income (Expense) | 91 | (188 | ) | (567 | ) | (60 | ) | 555 | (169 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 85 | (188 | ) | (523 | ) | 164 | 555 | 93 | ||||||||||||||||
Income Tax Expense | — | (1 | ) | — | (7 | ) | — | (8 | ) | |||||||||||||||
Net Income (Loss) | 85 | (189 | ) | (523 | ) | 157 | 555 | 85 | ||||||||||||||||
Other Comprehensive Income, Net of Income Taxes | (137 | ) | — | — | (137 | ) | 137 | (137 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | (52 | ) | $ | (189 | ) | $ | (523 | ) | $ | 20 | $ | 692 | $ | (52 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,278 | $ | 2,750 | $ | (165 | ) | $ | 4,863 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Network Access Costs | — | — | 869 | 1,130 | (165 | ) | 1,834 | |||||||||||||||||
Network Related Expenses | — | — | 567 | 334 | — | 901 | ||||||||||||||||||
Depreciation and Amortization | — | — | 209 | 349 | — | 558 | ||||||||||||||||||
Selling, General and Administrative Expenses | 7 | 1 | 505 | 275 | — | 788 | ||||||||||||||||||
Total Costs and Expenses | 7 | 1 | 2,150 | 2,088 | (165 | ) | 4,081 | |||||||||||||||||
Operating Income (Loss) | (7 | ) | (1 | ) | 128 | 662 | — | 782 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (102 | ) | (337 | ) | (1 | ) | (19 | ) | — | (459 | ) | |||||||||||||
Interest income (expense) affiliates, net | 905 | 1,370 | (2,169 | ) | (106 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (548 | ) | (1,577 | ) | 502 | — | 1,623 | — | ||||||||||||||||
Other, net | — | — | 6 | (55 | ) | — | (49 | ) | ||||||||||||||||
Total Other Expense | 255 | (544 | ) | (1,662 | ) | (179 | ) | 1,623 | (507 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 248 | (545 | ) | (1,534 | ) | 483 | 1,623 | 275 | ||||||||||||||||
Income Tax Expense | — | (3 | ) | (1 | ) | (23 | ) | — | (27 | ) | ||||||||||||||
Net Income (Loss) | 248 | (548 | ) | (1,535 | ) | 460 | 1,623 | 248 | ||||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (118 | ) | — | — | (118 | ) | 118 | (118 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | 130 | $ | (548 | ) | $ | (1,535 | ) | $ | 342 | $ | 1,741 | $ | 130 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 (as revised) | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Network Access Costs | 264 | 405 | (61 | ) | 608 | |||||||||||||||||||
Network Related Expenses | — | — | 194 | 120 | — | 314 | ||||||||||||||||||
Depreciation and Amortization | — | — | 73 | 130 | — | 203 | ||||||||||||||||||
Selling, General and Administrative Expenses | 1 | 1 | 191 | 99 | — | 292 | ||||||||||||||||||
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 (as revised) | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Network Access Costs | — | — | 781 | 1,254 | (182 | ) | 1,853 | |||||||||||||||||
Network Related Expenses | — | — | 572 | 344 | — | 916 | ||||||||||||||||||
Depreciation and Amortization | — | — | 215 | 381 | — | 596 | ||||||||||||||||||
Selling, General and Administrative Expenses | 2 | 1 | 606 | 290 | — | 899 | ||||||||||||||||||
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 Income, Net of Income Taxes | (21 | ) | (21 | ) | — | (21 | ) | 42 | (21 | ) | ||||||||||||||
Comprehensive Income (Loss) | $ | (144 | ) | $ | (846 | ) | $ | (1,695 | ) | $ | 357 | $ | 2,184 | $ | (144 | ) | ||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
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 | $ | 7 | $ | 5 | $ | 524 | $ | 193 | $ | — | $ | 729 | ||||||||||||
Restricted cash and securities | — | — | 1 | 1,019 | — | 1,020 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 48 | 630 | — | 678 | ||||||||||||||||||
Due from affiliates | 16,348 | 17,921 | — | — | (34,269 | ) | — | |||||||||||||||||
Other | 3 | 16 | 63 | 91 | — | 173 | ||||||||||||||||||
Total Current Assets | 16,358 | 17,942 | 636 | 1,933 | (34,269 | ) | 2,600 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,112 | 5,156 | — | 8,268 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 16 | 2 | — | 21 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 376 | 2,348 | — | 2,724 | ||||||||||||||||||
Investment in Subsidiaries | 10,127 | 8,794 | 3,731 | — | (22,652 | ) | — | |||||||||||||||||
Other Assets, net | 8 | 100 | 10 | 252 | — | 370 | ||||||||||||||||||
Total Assets | $ | 26,496 | $ | 26,836 | $ | 7,881 | $ | 9,691 | $ | (56,921 | ) | $ | 13,983 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 2 | $ | — | $ | 236 | $ | 369 | $ | — | $ | 607 | ||||||||||||
Current portion of long-term debt | 475 | — | 2 | 25 | — | 502 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 128 | 37 | — | 165 | ||||||||||||||||||
Accrued interest | 46 | 131 | — | 7 | — | 184 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 124 | 120 | — | 244 | ||||||||||||||||||
Due to affiliates | — | — | 33,869 | 400 | (34,269 | ) | — | |||||||||||||||||
Other | — | 1 | 67 | 83 | — | 151 | ||||||||||||||||||
Total Current Liabilities | 523 | 132 | 34,426 | 1,041 | (34,269 | ) | 1,853 | |||||||||||||||||
Long-Term Debt, less current portion | 898 | 6,907 | 17 | 1,034 | — | 8,856 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 570 | 307 | — | 877 | ||||||||||||||||||
Other Liabilities | 15 | 29 | 119 | 586 | — | 749 | ||||||||||||||||||
Commitments and Contingencies | — | — | ||||||||||||||||||||||
Stockholders' Equity (Deficit) | 25,060 | 19,768 | (27,251 | ) | 6,723 | (22,652 | ) | 1,648 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 26,496 | $ | 26,836 | $ | 7,881 | $ | 9,691 | $ | (56,921 | ) | $ | 13,983 | |||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 8 | $ | 6 | $ | 347 | $ | 270 | $ | — | $ | 631 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 79 | 594 | — | 673 | ||||||||||||||||||
Due from affiliates | 15,507 | 16,886 | — | — | (32,393 | ) | — | |||||||||||||||||
Other | 2 | 15 | 47 | 79 | — | 143 | ||||||||||||||||||
Total Current Assets | 15,517 | 16,907 | 474 | 949 | (32,393 | ) | 1,454 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,028 | 5,212 | — | 8,240 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 18 | 2 | — | 23 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 395 | 2,387 | — | 2,782 | ||||||||||||||||||
Investment in Subsidiaries | 10,039 | 27,014 | 3,735 | — | (40,788 | ) | — | |||||||||||||||||
Other Assets, net | 10 | 113 | 11 | 241 | — | 375 | ||||||||||||||||||
Total Assets | $ | 25,569 | $ | 44,034 | $ | 7,661 | $ | 8,791 | $ | (73,181 | ) | $ | 12,874 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 2 | $ | 42 | $ | 581 | $ | — | $ | 625 | ||||||||||||
Current portion of long-term debt | — | — | 3 | 28 | — | 31 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 171 | 38 | — | 209 | ||||||||||||||||||
Accrued interest | 30 | 129 | — | 1 | — | 160 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 131 | 122 | — | 253 | ||||||||||||||||||
Due to affiliates | — | — | 32,165 | 228 | (32,393 | ) | — | |||||||||||||||||
Other | — | 13 | 74 | 81 | — | 168 | ||||||||||||||||||
Total Current Liabilities | 30 | 144 | 32,586 | 1,079 | (32,393 | ) | 1,446 | |||||||||||||||||
Long-Term Debt, less current portion | 1,370 | 6,905 | 17 | 39 | — | 8,331 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 603 | 303 | — | 906 | ||||||||||||||||||
Other Liabilities | 15 | 27 | 135 | 603 | — | 780 | ||||||||||||||||||
Commitments and Contingencies | — | — | — | — | — | — | ||||||||||||||||||
Stockholders' Equity (Deficit) | 24,154 | 36,958 | (25,680 | ) | 6,767 | (40,788 | ) | 1,411 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 25,569 | $ | 44,034 | $ | 7,661 | $ | 8,791 | $ | (73,181 | ) | $ | 12,874 | |||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
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 | $ | (91 | ) | $ | (336 | ) | $ | 443 | $ | 749 | $ | — | $ | 765 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (261 | ) | (347 | ) | — | (608 | ) | |||||||||||||||
Increase in restricted cash and securities, net | — | — | 1 | (11 | ) | — | (10 | ) | ||||||||||||||||
Proceeds from the sale of property, plant and equipment and other assets | — | — | — | 3 | — | 3 | ||||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | — | — | (260 | ) | (357 | ) | — | (617 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Increase (decrease) due from/to affiliates, net | 90 | 335 | (6 | ) | (419 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 90 | 335 | (6 | ) | (428 | ) | — | (9 | ) | |||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (41 | ) | — | (41 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (1 | ) | (1 | ) | 177 | (77 | ) | — | 98 | |||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 8 | 6 | 347 | 270 | — | 631 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 7 | $ | 5 | $ | 524 | $ | 193 | $ | — | $ | 729 | ||||||||||||
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 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 | ||||||||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Event [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
Merger of tw telecom | |
On October 31, 2014, the Company and two of its subsidiaries completed the merger with tw telecom and tw telecom became a wholly owned subsidiary of the Company through a tax-free, stock and cash reorganization. Based on the number of Level 3 shares issued, Level 3's closing stock price of $46.91 on October 31, 2014, the cash paid to the former holders of tw telecom common stock and the $1.793 billion of debt of tw telecom called for redemption and discharged or repaid, the aggregate consideration for acquisition accounting, including assumed debt, approximated $8.1 billion. See Note 2 — Events Associated with the Merger of tw telecom for additional information. | |
Tranche B 2022 Term Loan | |
On October 31, 2014, Level 3 Financing, Inc. increased the borrowings under its existing senior secured credit facility through the creation of a new $2 billion Tranche B 2022 Term Loan (the "Tranche B 2022 Term Loan"). The transaction was completed with the closing of the acquisition of tw telecom. The Tranche B 2022 Term Loan included an up front payment to the Tranche B 2022 Term Loan lenders of 0.75 percent of par, will pay interest equal to LIBOR plus 3.5 percent with LIBOR set at a minimum of 1.0 percent and mature on January 31, 2022. See Note 2 — Events Associated with the Merger of tw telecom for additional information. | |
Upon closing of the Tranche B 2022 Term Loan, Level 3 Financing, Inc. used the gross proceeds to finance the cash portion of the merger consideration payable to tw telecom's stockholders under the Merger Agreement and to refinance certain existing indebtedness of tw telecom, including fees and premiums, in connection with the closing of that acquisition. See Note 2 — Events Associated with the Merger of tw telecom for additional information. | |
Floating Rate Senior Notes due 2018 | |
The Floating Rate Senior Notes due 2018 issued by Level 3 Financing, Inc. in November 2013 were not originally registered under the Securities Act of 1933, as amended. During the fourth quarter of 2014, all of the originally placed notes were exchanged for a new issue of Floating Rate Senior Notes due 2018 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. The Floating Rate Senior Notes due 2018 are guaranteed by Level 3 Communications, Inc. and Level 3 Communications, LLC. | |
6.125% Senior Notes due 2021 | |
The 6.125% Senior Notes due 2021 issued by Level 3 Financing, Inc. in November 2013 were not originally registered under the Securities Act of 1933, as amended. During the fourth quarter of 2014, all of the originally placed notes were exchanged for a new issue of 6.125% Senior Notes due 2021 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. The 6.125% Senior Notes due 2021 are guaranteed by Level 3 Communications, Inc. and Level 3 Communications, LLC. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
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, 2014 | ||||||||||||
Acquired Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of acquisition-related intangible assets | ' | |||||||||||
Identifiable acquisition-related intangible assets as of September 30, 2014 and December 31, 2013 were as follows (dollars in millions): | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | |||||||||||
Amount | ||||||||||||
September 30, 2014 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 785 | $ | (708 | ) | $ | 77 | |||||
Trademarks | 55 | (41 | ) | 14 | ||||||||
Patents and Developed Technology | 158 | (127 | ) | 31 | ||||||||
998 | (876 | ) | 122 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,030 | $ | (876 | ) | $ | 154 | ||||||
December 31, 2013 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 786 | $ | (678 | ) | $ | 108 | |||||
Trademarks | 55 | (31 | ) | 24 | ||||||||
Patents and Developed Technology | 158 | (117 | ) | 41 | ||||||||
999 | (826 | ) | 173 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Vyvx Trade Name | 32 | — | 32 | |||||||||
$ | 1,031 | $ | (826 | ) | $ | 205 | ||||||
Schedule of estimated amortization expense of finite-lived acquisition-related intangible assets | ' | |||||||||||
As of September 30, 2014, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years is as follows (dollars in millions): | ||||||||||||
2014 (remaining 3 months) | $ | 13 | ||||||||||
2015 | 48 | |||||||||||
2016 | 30 | |||||||||||
2017 | 15 | |||||||||||
2018 | 13 | |||||||||||
2019 | 3 | |||||||||||
$ | 122 | |||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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, 2014 and December 31, 2013: | |||||||||||||||||||||||||
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, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Liabilities Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Interest Rate Swap Liabilities (included in other current liabilities) | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | 12 | |||||||||||||
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | 12 | |||||||||||||
Liabilities Not Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Long-term Debt, including the current portion: | |||||||||||||||||||||||||
Term Loans | $ | 2,605 | $ | 2,604 | $ | 2,563 | $ | 2,633 | $ | — | $ | — | |||||||||||||
Senior Notes | 6,200 | 5,198 | 5,531 | 5,673 | — | — | |||||||||||||||||||
Convertible Notes | 475 | 474 | — | — | 818 | 647 | |||||||||||||||||||
Capital Leases and Other | 78 | 86 | — | — | 78 | 86 | |||||||||||||||||||
Total Long-term Debt, including the current portion | $ | 9,358 | $ | 8,362 | $ | 8,094 | $ | 8,306 | $ | 896 | $ | 733 | |||||||||||||
The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3). |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Long-term debt | ' | ||||||||
Schedule of long-term debt | ' | ||||||||
As of September 30, 2014 and December 31, 2013, long-term debt was as follows: | |||||||||
(dollars in millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Senior Secured Term Loan* | $ | 2,611 | $ | 2,611 | |||||
Floating Rate Senior Notes due 2018 (3.823% as of September 30, 2014 and 3.846% as of December 31, 2013) | 300 | 300 | |||||||
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 | |||||||
6.125% Senior Notes due 2021 | 640 | 640 | |||||||
5.375% Senior Notes due 2022 | 1,000 | — | |||||||
7% Convertible Senior Notes due 2015 | 200 | 200 | |||||||
7% Convertible Senior Notes due 2015 Series B | 275 | 275 | |||||||
Capital Leases | 66 | 73 | |||||||
Other | 12 | 13 | |||||||
Total Debt Obligations | 9,384 | 8,392 | |||||||
Unamortized Discount: | |||||||||
Discount on Senior Secured Term Loan | (6 | ) | (7 | ) | |||||
Discount on 11.875% Senior Notes due 2019 | (7 | ) | (8 | ) | |||||
Discount on 9.375% Senior Notes due 2019 | (7 | ) | (7 | ) | |||||
Discount on 8.125% Senior Notes due 2019 | (6 | ) | (7 | ) | |||||
Discount on 7% Convertible Senior Notes due 2015 | — | (1 | ) | ||||||
Total Unamortized Discount | (26 | ) | (30 | ) | |||||
Carrying Value of Debt | 9,358 | 8,362 | |||||||
Less current portion | (502 | ) | (31 | ) | |||||
Long-term Debt, less current portion | $ | 8,856 | $ | 8,331 | |||||
* The $815 million Tranche B-III 2019 Term Loan due 2019 and the $1.796 billion Tranche B 2020 Term Loan due 2020 each had an interest rate of 4.00% as of September 30, 2014 and December 31, 2013. | |||||||||
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, 2014 (dollars in millions): | |||||||||
2014 (remaining three months) | $ | 22 | |||||||
2015 | 483 | ||||||||
2016 | 7 | ||||||||
2017 | 6 | ||||||||
2018 | 306 | ||||||||
2019 | 3,426 | ||||||||
Thereafter | 5,134 | ||||||||
$ | 9,384 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Statement of Comprehensive Income [Abstract] | ' | ||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The accumulated balances for each classification of other comprehensive income (loss) were as follows: | |||||||||||||
(dollars in millions) | Net Foreign Currency Translation Adjustment | Defined Benefit Pension Plans | Total | ||||||||||
Balance at December 31, 2012 | $ | 56 | $ | (30 | ) | $ | 26 | ||||||
Other comprehensive (loss) before reclassifications | (15 | ) | (9 | ) | (24 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 3 | 3 | ||||||||||
Balance at September 30, 2013 | $ | 41 | $ | (36 | ) | $ | 5 | ||||||
Balance at December 31, 2013 | $ | 67 | $ | (31 | ) | $ | 36 | ||||||
Other comprehensive (loss) before reclassifications | (120 | ) | (2 | ) | (122 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 4 | 4 | ||||||||||
Balance at September 30, 2014 | $ | (53 | ) | $ | (29 | ) | $ | (82 | ) | ||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||
The accumulated balances for each classification of other comprehensive income (loss) were as follows: | |||||||||||||
(dollars in millions) | Net Foreign Currency Translation Adjustment | Defined Benefit Pension Plans | Total | ||||||||||
Balance at December 31, 2012 | $ | 56 | $ | (30 | ) | $ | 26 | ||||||
Other comprehensive (loss) before reclassifications | (15 | ) | (9 | ) | (24 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 3 | 3 | ||||||||||
Balance at September 30, 2013 | $ | 41 | $ | (36 | ) | $ | 5 | ||||||
Balance at December 31, 2013 | $ | 67 | $ | (31 | ) | $ | 36 | ||||||
Other comprehensive (loss) before reclassifications | (120 | ) | (2 | ) | (122 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 4 | 4 | ||||||||||
Balance at September 30, 2014 | $ | (53 | ) | $ | (29 | ) | $ | (82 | ) | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, 2014 and 2013 (dollars in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Outperform Stock Options | $ | 2 | $ | 2 | $ | 6 | $ | 18 | ||||||||
Restricted Stock Units and Shares | 10 | 10 | 22 | 31 | ||||||||||||
Performance Restricted Stock Units | 4 | — | 7 | — | ||||||||||||
401(k) Match Expense | 6 | 6 | 18 | 19 | ||||||||||||
Restricted Stock Unit Bonus Grant | — | 12 | (5 | ) | 41 | |||||||||||
Management Incentive and Retention Plan | — | 1 | — | 7 | ||||||||||||
22 | 31 | 48 | 116 | |||||||||||||
Capitalized Non-Cash Compensation | — | (1 | ) | — | (1 | ) | ||||||||||
$ | 22 | $ | 30 | $ | 48 | $ | 115 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting Information [Line Items] | ' | ||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to consolidated net income (loss): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | 30-Sep-14 | 30-Sep-13 | |||||||||||||
Adjusted EBITDA: | |||||||||||||||||
North America | $ | 492 | $ | 447 | $ | 1,460 | $ | 1,309 | |||||||||
EMEA | 57 | 56 | 167 | 171 | |||||||||||||
Latin America | 92 | 77 | 264 | 226 | |||||||||||||
Unallocated Corporate Expenses | (170 | ) | (195 | ) | (503 | ) | (548 | ) | |||||||||
Consolidated Adjusted EBITDA | 471 | 385 | 1,388 | 1,158 | |||||||||||||
Income Tax Expense | (8 | ) | (14 | ) | (27 | ) | (39 | ) | |||||||||
Total Other Expense | (169 | ) | (159 | ) | (507 | ) | (531 | ) | |||||||||
Depreciation and Amortization | (187 | ) | (203 | ) | (558 | ) | (596 | ) | |||||||||
Non-Cash Stock Compensation | (22 | ) | (30 | ) | (48 | ) | (115 | ) | |||||||||
Total Consolidated Net Income (Loss) | $ | 85 | $ | (21 | ) | $ | 248 | $ | (123 | ) | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Capital Expenditures: | |||||||||||||||||
North America | $ | 116 | $ | 105 | $ | 318 | $ | 305 | |||||||||
EMEA | 34 | 33 | 82 | 102 | |||||||||||||
Latin America | 35 | 35 | 106 | 88 | |||||||||||||
Unallocated Corporate Capital Expenditures | 19 | 21 | 102 | 76 | |||||||||||||
Consolidated Capital Expenditures | $ | 204 | $ | 194 | $ | 608 | $ | 571 | |||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
Operating segments are defined under GAAP as components of an enterprise for which separate financial information is available and evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. The Company's reportable segments consist of 1) North America, 2) Europe, the Middle East and Africa (EMEA), 3) and Latin America. Other separate business interests that are not segments include interest, certain corporate assets and overhead costs, and certain other general and administrative costs that are not allocated to any of the operating segments. | |||||||||||||||||
The CODM measures and evaluates segment performance primarily based upon revenue, revenue growth and Adjusted EBITDA. Adjusted EBITDA, as defined by the Company, is equal to net income (loss) from the Consolidated Statements of Operations before (1) income tax benefit (expense), (2) total other income (expense), (3) non-cash impairment charges included within network related expenses and selling, general and administrative expenses, (4) depreciation and amortization expense, and (5) non-cash stock compensation expense included within network related expenses and selling, general and administrative expenses. | |||||||||||||||||
Adjusted EBITDA is not a measurement under GAAP and may not be used in the same way by other companies. Management believes that Adjusted EBITDA is an important part of the Company's internal reporting and is a key measure used by management to evaluate profitability and operating performance of the Company and to make resource allocation decisions. Management believes such measurement is especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA to compare the Company's performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses. | |||||||||||||||||
Adjusted EBITDA excludes non-cash impairment charges and non-cash stock compensation expense because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income tax benefit (expense) because these items are associated with the Company's capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the effect of capital investments which management believes are better evaluated through cash flow measures. Adjusted EBITDA excludes net other income (expense) because these items are not related to the primary operations of the Company. | |||||||||||||||||
There are limitations to using non-GAAP financial measures such as Adjusted EBITDA, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from the Company's calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income tax benefit (expense), depreciation and amortization expense, non-cash impairment charges, non-cash stock compensation expense, and net other income (expense). Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP. | |||||||||||||||||
Revenue and the related expenses are attributed to regions based on where services are provided. Revenue and costs for services provided in more than one region are allocated ratably between the regions, and the Company does not otherwise charge for services between reportable segments. Therefore, segment results do not include any intercompany revenue. The operating activities of the separate regions along with the activities that are not attributable to a segment are interdependent, and the regional results in the tables below do not include all intercompany charges and allocations that would be necessary to report the regional results on a standalone basis. | |||||||||||||||||
Total revenue consists of: | |||||||||||||||||
• | Core Network Services revenue from colocation and data center services; transport and fiber; IP and data services; and local and enterprise voice services. | ||||||||||||||||
• | Wholesale Voice Services and Other revenue from sales to other carriers of long distance voice services. | ||||||||||||||||
Core Network Services revenue represents higher profit services and Wholesale Voice Services and Other revenue represents lower profit services. Core Network Services revenue requires different levels of investment and focus and provides different contributions to the Company's operating results than Wholesale Voice Services and Other revenue. Management of the Company believes that growth in revenue from its Core Network Services is critical to the long-term success of its business. The Company also believes it must continue to effectively manage the contribution from the Wholesale Voice Services and Other component. The Company believes that trends in its communications business are best gauged by analyzing revenue changes in Core Network Services. | |||||||||||||||||
The following table presents revenue by segment: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Core Network Services Revenue: | |||||||||||||||||
North America | $ | 1,063 | $ | 987 | $ | 3,157 | $ | 2,924 | |||||||||
EMEA | 219 | 222 | 673 | 665 | |||||||||||||
Latin America | 200 | 188 | 588 | 559 | |||||||||||||
Total Core Network Services Revenue | 1,482 | 1,397 | 4,418 | 4,148 | |||||||||||||
Wholesale Voice Services and Other Revenue: | |||||||||||||||||
North America | 128 | 162 | 410 | 530 | |||||||||||||
EMEA | 4 | 8 | 14 | 25 | |||||||||||||
Latin America | 15 | 2 | 21 | 8 | |||||||||||||
Total Wholesale Voice Services and Other Revenue | 147 | 172 | 445 | 563 | |||||||||||||
Total Consolidated Revenue | $ | 1,629 | $ | 1,569 | $ | 4,863 | $ | 4,711 | |||||||||
The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to consolidated net income (loss): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | 30-Sep-14 | 30-Sep-13 | |||||||||||||
Adjusted EBITDA: | |||||||||||||||||
North America | $ | 492 | $ | 447 | $ | 1,460 | $ | 1,309 | |||||||||
EMEA | 57 | 56 | 167 | 171 | |||||||||||||
Latin America | 92 | 77 | 264 | 226 | |||||||||||||
Unallocated Corporate Expenses | (170 | ) | (195 | ) | (503 | ) | (548 | ) | |||||||||
Consolidated Adjusted EBITDA | 471 | 385 | 1,388 | 1,158 | |||||||||||||
Income Tax Expense | (8 | ) | (14 | ) | (27 | ) | (39 | ) | |||||||||
Total Other Expense | (169 | ) | (159 | ) | (507 | ) | (531 | ) | |||||||||
Depreciation and Amortization | (187 | ) | (203 | ) | (558 | ) | (596 | ) | |||||||||
Non-Cash Stock Compensation | (22 | ) | (30 | ) | (48 | ) | (115 | ) | |||||||||
Total Consolidated Net Income (Loss) | $ | 85 | $ | (21 | ) | $ | 248 | $ | (123 | ) | |||||||
The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Capital Expenditures: | |||||||||||||||||
North America | $ | 116 | $ | 105 | $ | 318 | $ | 305 | |||||||||
EMEA | 34 | 33 | 82 | 102 | |||||||||||||
Latin America | 35 | 35 | 106 | 88 | |||||||||||||
Unallocated Corporate Capital Expenditures | 19 | 21 | 102 | 76 | |||||||||||||
Consolidated Capital Expenditures | $ | 204 | $ | 194 | $ | 608 | $ | 571 | |||||||||
The following table presents total consolidated assets by segment: | |||||||||||||||||
(dollars in millions) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Assets: | |||||||||||||||||
North America | $ | 9,321 | $ | 8,133 | |||||||||||||
EMEA | 1,963 | 2,030 | |||||||||||||||
Latin America | 2,437 | 2,445 | |||||||||||||||
Other | 262 | 266 | |||||||||||||||
Total Consolidated Assets | $ | 13,983 | $ | 12,874 | |||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
The following table presents revenue by segment: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(dollars in millions) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Core Network Services Revenue: | |||||||||||||||||
North America | $ | 1,063 | $ | 987 | $ | 3,157 | $ | 2,924 | |||||||||
EMEA | 219 | 222 | 673 | 665 | |||||||||||||
Latin America | 200 | 188 | 588 | 559 | |||||||||||||
Total Core Network Services Revenue | 1,482 | 1,397 | 4,418 | 4,148 | |||||||||||||
Wholesale Voice Services and Other Revenue: | |||||||||||||||||
North America | 128 | 162 | 410 | 530 | |||||||||||||
EMEA | 4 | 8 | 14 | 25 | |||||||||||||
Latin America | 15 | 2 | 21 | 8 | |||||||||||||
Total Wholesale Voice Services and Other Revenue | 147 | 172 | 445 | 563 | |||||||||||||
Total Consolidated Revenue | $ | 1,629 | $ | 1,569 | $ | 4,863 | $ | 4,711 | |||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Information (as revised) | ||||||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 781 | $ | 901 | $ | (53 | ) | $ | 1,629 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Network Access Costs | — | — | 291 | 369 | (53 | ) | 607 | |||||||||||||||||
Network Related Expenses | — | — | 195 | 112 | — | 307 | ||||||||||||||||||
Depreciation and Amortization | — | — | 70 | 117 | — | 187 | ||||||||||||||||||
Selling, General and Administrative Expenses | 6 | — | 181 | 79 | — | 266 | ||||||||||||||||||
Total Costs and Expenses | 6 | — | 737 | 677 | (53 | ) | 1,367 | |||||||||||||||||
Operating Income (Loss) | (6 | ) | — | 44 | 224 | — | 262 | |||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (34 | ) | (112 | ) | (1 | ) | (12 | ) | — | (159 | ) | |||||||||||||
Interest income (expense) affiliates, net | 314 | 452 | (730 | ) | (36 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (189 | ) | (528 | ) | 162 | — | 555 | — | ||||||||||||||||
Other, net | — | — | 2 | (13 | ) | — | (11 | ) | ||||||||||||||||
Total Other Income (Expense) | 91 | (188 | ) | (567 | ) | (60 | ) | 555 | (169 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 85 | (188 | ) | (523 | ) | 164 | 555 | 93 | ||||||||||||||||
Income Tax Expense | — | (1 | ) | — | (7 | ) | — | (8 | ) | |||||||||||||||
Net Income (Loss) | 85 | (189 | ) | (523 | ) | 157 | 555 | 85 | ||||||||||||||||
Other Comprehensive Income, Net of Income Taxes | (137 | ) | — | — | (137 | ) | 137 | (137 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | (52 | ) | $ | (189 | ) | $ | (523 | ) | $ | 20 | $ | 692 | $ | (52 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,278 | $ | 2,750 | $ | (165 | ) | $ | 4,863 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Network Access Costs | — | — | 869 | 1,130 | (165 | ) | 1,834 | |||||||||||||||||
Network Related Expenses | — | — | 567 | 334 | — | 901 | ||||||||||||||||||
Depreciation and Amortization | — | — | 209 | 349 | — | 558 | ||||||||||||||||||
Selling, General and Administrative Expenses | 7 | 1 | 505 | 275 | — | 788 | ||||||||||||||||||
Total Costs and Expenses | 7 | 1 | 2,150 | 2,088 | (165 | ) | 4,081 | |||||||||||||||||
Operating Income (Loss) | (7 | ) | (1 | ) | 128 | 662 | — | 782 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (102 | ) | (337 | ) | (1 | ) | (19 | ) | — | (459 | ) | |||||||||||||
Interest income (expense) affiliates, net | 905 | 1,370 | (2,169 | ) | (106 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (548 | ) | (1,577 | ) | 502 | — | 1,623 | — | ||||||||||||||||
Other, net | — | — | 6 | (55 | ) | — | (49 | ) | ||||||||||||||||
Total Other Expense | 255 | (544 | ) | (1,662 | ) | (179 | ) | 1,623 | (507 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 248 | (545 | ) | (1,534 | ) | 483 | 1,623 | 275 | ||||||||||||||||
Income Tax Expense | — | (3 | ) | (1 | ) | (23 | ) | — | (27 | ) | ||||||||||||||
Net Income (Loss) | 248 | (548 | ) | (1,535 | ) | 460 | 1,623 | 248 | ||||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (118 | ) | — | — | (118 | ) | 118 | (118 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | 130 | $ | (548 | ) | $ | (1,535 | ) | $ | 342 | $ | 1,741 | $ | 130 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 (as revised) | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Network Access Costs | 264 | 405 | (61 | ) | 608 | |||||||||||||||||||
Network Related Expenses | — | — | 194 | 120 | — | 314 | ||||||||||||||||||
Depreciation and Amortization | — | — | 73 | 130 | — | 203 | ||||||||||||||||||
Selling, General and Administrative Expenses | 1 | 1 | 191 | 99 | — | 292 | ||||||||||||||||||
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 (as revised) | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Network Access Costs | — | — | 781 | 1,254 | (182 | ) | 1,853 | |||||||||||||||||
Network Related Expenses | — | — | 572 | 344 | — | 916 | ||||||||||||||||||
Depreciation and Amortization | — | — | 215 | 381 | — | 596 | ||||||||||||||||||
Selling, General and Administrative Expenses | 2 | 1 | 606 | 290 | — | 899 | ||||||||||||||||||
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 Income, Net of Income Taxes | (21 | ) | (21 | ) | — | (21 | ) | 42 | (21 | ) | ||||||||||||||
Comprehensive Income (Loss) | $ | (144 | ) | $ | (846 | ) | $ | (1,695 | ) | $ | 357 | $ | 2,184 | $ | (144 | ) | ||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
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 | $ | 7 | $ | 5 | $ | 524 | $ | 193 | $ | — | $ | 729 | ||||||||||||
Restricted cash and securities | — | — | 1 | 1,019 | — | 1,020 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 48 | 630 | — | 678 | ||||||||||||||||||
Due from affiliates | 16,348 | 17,921 | — | — | (34,269 | ) | — | |||||||||||||||||
Other | 3 | 16 | 63 | 91 | — | 173 | ||||||||||||||||||
Total Current Assets | 16,358 | 17,942 | 636 | 1,933 | (34,269 | ) | 2,600 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,112 | 5,156 | — | 8,268 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 16 | 2 | — | 21 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 376 | 2,348 | — | 2,724 | ||||||||||||||||||
Investment in Subsidiaries | 10,127 | 8,794 | 3,731 | — | (22,652 | ) | — | |||||||||||||||||
Other Assets, net | 8 | 100 | 10 | 252 | — | 370 | ||||||||||||||||||
Total Assets | $ | 26,496 | $ | 26,836 | $ | 7,881 | $ | 9,691 | $ | (56,921 | ) | $ | 13,983 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 2 | $ | — | $ | 236 | $ | 369 | $ | — | $ | 607 | ||||||||||||
Current portion of long-term debt | 475 | — | 2 | 25 | — | 502 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 128 | 37 | — | 165 | ||||||||||||||||||
Accrued interest | 46 | 131 | — | 7 | — | 184 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 124 | 120 | — | 244 | ||||||||||||||||||
Due to affiliates | — | — | 33,869 | 400 | (34,269 | ) | — | |||||||||||||||||
Other | — | 1 | 67 | 83 | — | 151 | ||||||||||||||||||
Total Current Liabilities | 523 | 132 | 34,426 | 1,041 | (34,269 | ) | 1,853 | |||||||||||||||||
Long-Term Debt, less current portion | 898 | 6,907 | 17 | 1,034 | — | 8,856 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 570 | 307 | — | 877 | ||||||||||||||||||
Other Liabilities | 15 | 29 | 119 | 586 | — | 749 | ||||||||||||||||||
Commitments and Contingencies | — | — | ||||||||||||||||||||||
Stockholders' Equity (Deficit) | 25,060 | 19,768 | (27,251 | ) | 6,723 | (22,652 | ) | 1,648 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 26,496 | $ | 26,836 | $ | 7,881 | $ | 9,691 | $ | (56,921 | ) | $ | 13,983 | |||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 8 | $ | 6 | $ | 347 | $ | 270 | $ | — | $ | 631 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 79 | 594 | — | 673 | ||||||||||||||||||
Due from affiliates | 15,507 | 16,886 | — | — | (32,393 | ) | — | |||||||||||||||||
Other | 2 | 15 | 47 | 79 | — | 143 | ||||||||||||||||||
Total Current Assets | 15,517 | 16,907 | 474 | 949 | (32,393 | ) | 1,454 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,028 | 5,212 | — | 8,240 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 18 | 2 | — | 23 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 395 | 2,387 | — | 2,782 | ||||||||||||||||||
Investment in Subsidiaries | 10,039 | 27,014 | 3,735 | — | (40,788 | ) | — | |||||||||||||||||
Other Assets, net | 10 | 113 | 11 | 241 | — | 375 | ||||||||||||||||||
Total Assets | $ | 25,569 | $ | 44,034 | $ | 7,661 | $ | 8,791 | $ | (73,181 | ) | $ | 12,874 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 2 | $ | 42 | $ | 581 | $ | — | $ | 625 | ||||||||||||
Current portion of long-term debt | — | — | 3 | 28 | — | 31 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 171 | 38 | — | 209 | ||||||||||||||||||
Accrued interest | 30 | 129 | — | 1 | — | 160 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 131 | 122 | — | 253 | ||||||||||||||||||
Due to affiliates | — | — | 32,165 | 228 | (32,393 | ) | — | |||||||||||||||||
Other | — | 13 | 74 | 81 | — | 168 | ||||||||||||||||||
Total Current Liabilities | 30 | 144 | 32,586 | 1,079 | (32,393 | ) | 1,446 | |||||||||||||||||
Long-Term Debt, less current portion | 1,370 | 6,905 | 17 | 39 | — | 8,331 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 603 | 303 | — | 906 | ||||||||||||||||||
Other Liabilities | 15 | 27 | 135 | 603 | — | 780 | ||||||||||||||||||
Commitments and Contingencies | — | — | — | — | — | — | ||||||||||||||||||
Stockholders' Equity (Deficit) | 24,154 | 36,958 | (25,680 | ) | 6,767 | (40,788 | ) | 1,411 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 25,569 | $ | 44,034 | $ | 7,661 | $ | 8,791 | $ | (73,181 | ) | $ | 12,874 | |||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
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 | $ | (91 | ) | $ | (336 | ) | $ | 443 | $ | 749 | $ | — | $ | 765 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (261 | ) | (347 | ) | — | (608 | ) | |||||||||||||||
Increase in restricted cash and securities, net | — | — | 1 | (11 | ) | — | (10 | ) | ||||||||||||||||
Proceeds from the sale of property, plant and equipment and other assets | — | — | — | 3 | — | 3 | ||||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | — | — | (260 | ) | (357 | ) | — | (617 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Increase (decrease) due from/to affiliates, net | 90 | 335 | (6 | ) | (419 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 90 | 335 | (6 | ) | (428 | ) | — | (9 | ) | |||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (41 | ) | — | (41 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (1 | ) | (1 | ) | 177 | (77 | ) | — | 98 | |||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 8 | 6 | 347 | 270 | — | 631 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 7 | $ | 5 | $ | 524 | $ | 193 | $ | — | $ | 729 | ||||||||||||
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 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 | ||||||||||||
Schedule of Condensed Consolidating Statements of Operations | ' | |||||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 781 | $ | 901 | $ | (53 | ) | $ | 1,629 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Network Access Costs | — | — | 291 | 369 | (53 | ) | 607 | |||||||||||||||||
Network Related Expenses | — | — | 195 | 112 | — | 307 | ||||||||||||||||||
Depreciation and Amortization | — | — | 70 | 117 | — | 187 | ||||||||||||||||||
Selling, General and Administrative Expenses | 6 | — | 181 | 79 | — | 266 | ||||||||||||||||||
Total Costs and Expenses | 6 | — | 737 | 677 | (53 | ) | 1,367 | |||||||||||||||||
Operating Income (Loss) | (6 | ) | — | 44 | 224 | — | 262 | |||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (34 | ) | (112 | ) | (1 | ) | (12 | ) | — | (159 | ) | |||||||||||||
Interest income (expense) affiliates, net | 314 | 452 | (730 | ) | (36 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (189 | ) | (528 | ) | 162 | — | 555 | — | ||||||||||||||||
Other, net | — | — | 2 | (13 | ) | — | (11 | ) | ||||||||||||||||
Total Other Income (Expense) | 91 | (188 | ) | (567 | ) | (60 | ) | 555 | (169 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 85 | (188 | ) | (523 | ) | 164 | 555 | 93 | ||||||||||||||||
Income Tax Expense | — | (1 | ) | — | (7 | ) | — | (8 | ) | |||||||||||||||
Net Income (Loss) | 85 | (189 | ) | (523 | ) | 157 | 555 | 85 | ||||||||||||||||
Other Comprehensive Income, Net of Income Taxes | (137 | ) | — | — | (137 | ) | 137 | (137 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | (52 | ) | $ | (189 | ) | $ | (523 | ) | $ | 20 | $ | 692 | $ | (52 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,278 | $ | 2,750 | $ | (165 | ) | $ | 4,863 | |||||||||||
Costs and Expense: | ||||||||||||||||||||||||
Network Access Costs | — | — | 869 | 1,130 | (165 | ) | 1,834 | |||||||||||||||||
Network Related Expenses | — | — | 567 | 334 | — | 901 | ||||||||||||||||||
Depreciation and Amortization | — | — | 209 | 349 | — | 558 | ||||||||||||||||||
Selling, General and Administrative Expenses | 7 | 1 | 505 | 275 | — | 788 | ||||||||||||||||||
Total Costs and Expenses | 7 | 1 | 2,150 | 2,088 | (165 | ) | 4,081 | |||||||||||||||||
Operating Income (Loss) | (7 | ) | (1 | ) | 128 | 662 | — | 782 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (102 | ) | (337 | ) | (1 | ) | (19 | ) | — | (459 | ) | |||||||||||||
Interest income (expense) affiliates, net | 905 | 1,370 | (2,169 | ) | (106 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (548 | ) | (1,577 | ) | 502 | — | 1,623 | — | ||||||||||||||||
Other, net | — | — | 6 | (55 | ) | — | (49 | ) | ||||||||||||||||
Total Other Expense | 255 | (544 | ) | (1,662 | ) | (179 | ) | 1,623 | (507 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 248 | (545 | ) | (1,534 | ) | 483 | 1,623 | 275 | ||||||||||||||||
Income Tax Expense | — | (3 | ) | (1 | ) | (23 | ) | — | (27 | ) | ||||||||||||||
Net Income (Loss) | 248 | (548 | ) | (1,535 | ) | 460 | 1,623 | 248 | ||||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (118 | ) | — | — | (118 | ) | 118 | (118 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | 130 | $ | (548 | ) | $ | (1,535 | ) | $ | 342 | $ | 1,741 | $ | 130 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 (as revised) | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Network Access Costs | 264 | 405 | (61 | ) | 608 | |||||||||||||||||||
Network Related Expenses | — | — | 194 | 120 | — | 314 | ||||||||||||||||||
Depreciation and Amortization | — | — | 73 | 130 | — | 203 | ||||||||||||||||||
Selling, General and Administrative Expenses | 1 | 1 | 191 | 99 | — | 292 | ||||||||||||||||||
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 (as revised) | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Network Access Costs | — | — | 781 | 1,254 | (182 | ) | 1,853 | |||||||||||||||||
Network Related Expenses | — | — | 572 | 344 | — | 916 | ||||||||||||||||||
Depreciation and Amortization | — | — | 215 | 381 | — | 596 | ||||||||||||||||||
Selling, General and Administrative Expenses | 2 | 1 | 606 | 290 | — | 899 | ||||||||||||||||||
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 Income, Net of Income Taxes | (21 | ) | (21 | ) | — | (21 | ) | 42 | (21 | ) | ||||||||||||||
Comprehensive Income (Loss) | $ | (144 | ) | $ | (846 | ) | $ | (1,695 | ) | $ | 357 | $ | 2,184 | $ | (144 | ) | ||||||||
Schedule of Condensed Consolidating Balance Sheets | ' | |||||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
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 | $ | 7 | $ | 5 | $ | 524 | $ | 193 | $ | — | $ | 729 | ||||||||||||
Restricted cash and securities | — | — | 1 | 1,019 | — | 1,020 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 48 | 630 | — | 678 | ||||||||||||||||||
Due from affiliates | 16,348 | 17,921 | — | — | (34,269 | ) | — | |||||||||||||||||
Other | 3 | 16 | 63 | 91 | — | 173 | ||||||||||||||||||
Total Current Assets | 16,358 | 17,942 | 636 | 1,933 | (34,269 | ) | 2,600 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,112 | 5,156 | — | 8,268 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 16 | 2 | — | 21 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 376 | 2,348 | — | 2,724 | ||||||||||||||||||
Investment in Subsidiaries | 10,127 | 8,794 | 3,731 | — | (22,652 | ) | — | |||||||||||||||||
Other Assets, net | 8 | 100 | 10 | 252 | — | 370 | ||||||||||||||||||
Total Assets | $ | 26,496 | $ | 26,836 | $ | 7,881 | $ | 9,691 | $ | (56,921 | ) | $ | 13,983 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 2 | $ | — | $ | 236 | $ | 369 | $ | — | $ | 607 | ||||||||||||
Current portion of long-term debt | 475 | — | 2 | 25 | — | 502 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 128 | 37 | — | 165 | ||||||||||||||||||
Accrued interest | 46 | 131 | — | 7 | — | 184 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 124 | 120 | — | 244 | ||||||||||||||||||
Due to affiliates | — | — | 33,869 | 400 | (34,269 | ) | — | |||||||||||||||||
Other | — | 1 | 67 | 83 | — | 151 | ||||||||||||||||||
Total Current Liabilities | 523 | 132 | 34,426 | 1,041 | (34,269 | ) | 1,853 | |||||||||||||||||
Long-Term Debt, less current portion | 898 | 6,907 | 17 | 1,034 | — | 8,856 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 570 | 307 | — | 877 | ||||||||||||||||||
Other Liabilities | 15 | 29 | 119 | 586 | — | 749 | ||||||||||||||||||
Commitments and Contingencies | — | — | ||||||||||||||||||||||
Stockholders' Equity (Deficit) | 25,060 | 19,768 | (27,251 | ) | 6,723 | (22,652 | ) | 1,648 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 26,496 | $ | 26,836 | $ | 7,881 | $ | 9,691 | $ | (56,921 | ) | $ | 13,983 | |||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 8 | $ | 6 | $ | 347 | $ | 270 | $ | — | $ | 631 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 79 | 594 | — | 673 | ||||||||||||||||||
Due from affiliates | 15,507 | 16,886 | — | — | (32,393 | ) | — | |||||||||||||||||
Other | 2 | 15 | 47 | 79 | — | 143 | ||||||||||||||||||
Total Current Assets | 15,517 | 16,907 | 474 | 949 | (32,393 | ) | 1,454 | |||||||||||||||||
Property, Plant, and Equipment, net | — | — | 3,028 | 5,212 | — | 8,240 | ||||||||||||||||||
Restricted Cash and Securities | 3 | — | 18 | 2 | — | 23 | ||||||||||||||||||
Goodwill and Other Intangibles, net | — | — | 395 | 2,387 | — | 2,782 | ||||||||||||||||||
Investment in Subsidiaries | 10,039 | 27,014 | 3,735 | — | (40,788 | ) | — | |||||||||||||||||
Other Assets, net | 10 | 113 | 11 | 241 | — | 375 | ||||||||||||||||||
Total Assets | $ | 25,569 | $ | 44,034 | $ | 7,661 | $ | 8,791 | $ | (73,181 | ) | $ | 12,874 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 2 | $ | 42 | $ | 581 | $ | — | $ | 625 | ||||||||||||
Current portion of long-term debt | — | — | 3 | 28 | — | 31 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 171 | 38 | — | 209 | ||||||||||||||||||
Accrued interest | 30 | 129 | — | 1 | — | 160 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 131 | 122 | — | 253 | ||||||||||||||||||
Due to affiliates | — | — | 32,165 | 228 | (32,393 | ) | — | |||||||||||||||||
Other | — | 13 | 74 | 81 | — | 168 | ||||||||||||||||||
Total Current Liabilities | 30 | 144 | 32,586 | 1,079 | (32,393 | ) | 1,446 | |||||||||||||||||
Long-Term Debt, less current portion | 1,370 | 6,905 | 17 | 39 | — | 8,331 | ||||||||||||||||||
Deferred Revenue, less current portion | — | — | 603 | 303 | — | 906 | ||||||||||||||||||
Other Liabilities | 15 | 27 | 135 | 603 | — | 780 | ||||||||||||||||||
Commitments and Contingencies | — | — | — | — | — | — | ||||||||||||||||||
Stockholders' Equity (Deficit) | 24,154 | 36,958 | (25,680 | ) | 6,767 | (40,788 | ) | 1,411 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 25,569 | $ | 44,034 | $ | 7,661 | $ | 8,791 | $ | (73,181 | ) | $ | 12,874 | |||||||||||
Schedule of Condensed Consolidating Statements of Cash Flows | ' | |||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
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 | $ | (91 | ) | $ | (336 | ) | $ | 443 | $ | 749 | $ | — | $ | 765 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures | — | — | (261 | ) | (347 | ) | — | (608 | ) | |||||||||||||||
Increase in restricted cash and securities, net | — | — | 1 | (11 | ) | — | (10 | ) | ||||||||||||||||
Proceeds from the sale of property, plant and equipment and other assets | — | — | — | 3 | — | 3 | ||||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | — | — | (260 | ) | (357 | ) | — | (617 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Increase (decrease) due from/to affiliates, net | 90 | 335 | (6 | ) | (419 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 90 | 335 | (6 | ) | (428 | ) | — | (9 | ) | |||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (41 | ) | — | (41 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (1 | ) | (1 | ) | 177 | (77 | ) | — | 98 | |||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 8 | 6 | 347 | 270 | — | 631 | ||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 7 | $ | 5 | $ | 524 | $ | 193 | $ | — | $ | 729 | ||||||||||||
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 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 | ||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jan. 01, 2014 |
Property, Plant and Equipment [Line Items] | ' | ' |
IP Equipment | ' | $222 |
Net Income | '75 | ' |
Change in Accounting Estimate, Effect of Change on Basic Earnings Per Share | $0.32 | ' |
Change in Accounting Estimate, Effect of Change on Diluted Earnings Per Share | $0.31 | ' |
Racks and Cabinets | ' | 114 |
Facility Equipment | ' | 151 |
Fixtures and Equipment, Gross | ' | $487 |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies Schedule of Changes in Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Changes in Presentation [Line Items] | ' | ' | ' | ' |
Cost of Revenue | $607 | $608 | $1,834 | $1,853 |
Network Access Costs | 607 | 608 | 1,834 | 1,853 |
Network Related Expenses | 307 | 314 | 901 | 916 |
Selling, General and Administrative Expenses | 266 | 292 | 788 | 899 |
Total Costs and Expenses | 1,367 | 1,417 | 4,081 | 4,264 |
Scenario, Previously Reported [Member] | ' | ' | ' | ' |
Schedule of Changes in Presentation [Line Items] | ' | ' | ' | ' |
Cost of Revenue | ' | 608 | ' | 1,853 |
Network Access Costs | ' | 0 | ' | 0 |
Network Related Expenses | ' | 0 | ' | 0 |
Selling, General and Administrative Expenses | ' | 606 | ' | 1,815 |
Total Costs and Expenses | ' | 1,417 | ' | 4,264 |
Restatement Adjustment [Member] | ' | ' | ' | ' |
Schedule of Changes in Presentation [Line Items] | ' | ' | ' | ' |
Cost of Revenue | ' | -608 | ' | -1,853 |
Network Access Costs | ' | 608 | ' | 1,853 |
Network Related Expenses | ' | 314 | ' | 916 |
Selling, General and Administrative Expenses | ' | -314 | ' | -916 |
Total Costs and Expenses | ' | 0 | ' | 0 |
As Restated [Member] | ' | ' | ' | ' |
Schedule of Changes in Presentation [Line Items] | ' | ' | ' | ' |
Cost of Revenue | ' | 0 | ' | 0 |
Network Access Costs | ' | 608 | ' | 1,853 |
Network Related Expenses | ' | 314 | ' | 916 |
Selling, General and Administrative Expenses | ' | 292 | ' | 899 |
Total Costs and Expenses | ' | $1,417 | ' | $4,264 |
Events_Associated_with_the_Mer1
Events Associated with the Merger of tw telecom (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 5 Months Ended | 14 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2015 | Oct. 30, 2014 | Oct. 13, 2014 | |
Level 3 Escrow II, Inc. [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Financing [Member] | ||||||||||
2.0 Billion Senior Secured Debt [Member] | |||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Revenue | $2,047,000,000 | $1,955,000,000 | $6,096,000,000 | $5,854,000,000 | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Net Income (Loss) | 72,000,000 | -67,000,000 | 199,000,000 | -212,000,000 | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $0.22 | ($0.21) | $0.60 | ($0.67) | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $0.21 | ($0.21) | $0.59 | ($0.67) | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | ' | ' | ' | ' | 31-Oct-14 | ' | ' | ' | ' |
Business Combination, Consideration Transferred | ' | ' | ' | ' | ' | ' | 8,100,000,000 | ' | ' | ' | ' |
Business Acquisition, Share Price | ' | ' | ' | ' | ' | ' | ' | $46.91 | ' | ' | ' |
business acquisition, cash consideration per share | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | 2,000,000,000 |
Proceeds from Issuance of Unsecured Debt | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 5.38% | ' | ' | ' | ' | ' |
Authorized Common Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' |
Common Stock, Shares Authorized | 343,333,333 | ' | 343,333,333 | ' | 343,333,333 | ' | ' | ' | ' | 433,333,333 | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | ' | ' | ' | ' | ' | ' | 96,900,000 | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | ' | ' | ' | ' | ' | ' | ' | 1,793,000,000 | ' | ' | ' |
Stock consideration per share | ' | ' | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Integration Related Costs | ' | ' | $11,000,000 | ' | ' | ' | ' | $82,000,000 | $170,000,000 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Convertible Senior Notes | ' | ' |
Earnings per share | ' | ' |
Securities not included in computation of diluted loss per share (in millions of shares) | 18 | 28 |
Stock options, outperform stock appreciation rights (OSOs), restricted stock units and warrants | ' | ' |
Earnings per share | ' | ' |
Securities not included in computation of diluted loss per share (in millions of shares) | 5 | 6 |
Acquired_Intangible_Assets_Det
Acquired Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | $998 | ' | $998 | ' | $999 |
Finite-Lived Intangible Assets, Accumulated Amortization | -876 | ' | -876 | ' | -826 |
Finite-Lived Intangible Assets, Net | 122 | ' | 122 | ' | 173 |
Acquired finite-lived intangible asset amortization expense | 14 | 18 | 50 | 54 | ' |
Indefinite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Total identifiable acquisition-related intangible assets, Gross Carrying Amount | 1,030 | ' | 1,030 | ' | 1,031 |
Total identifiable acquisition-related intangible assets, Net | 154 | ' | 154 | ' | 205 |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
2013 (remaining three months) | 13 | ' | 13 | ' | ' |
2014 | 48 | ' | 48 | ' | ' |
2015 | 30 | ' | 30 | ' | ' |
2016 | 15 | ' | 15 | ' | ' |
2017 | 13 | ' | 13 | ' | ' |
2018 | 3 | ' | 3 | ' | ' |
Finite-Lived Intangible Assets, Net | 122 | ' | 122 | ' | 173 |
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 | 785 | ' | 785 | ' | 786 |
Finite-Lived Intangible Assets, Accumulated Amortization | -708 | ' | -708 | ' | -678 |
Finite-Lived Intangible Assets, Net | 77 | ' | 77 | ' | 108 |
Acquired finite-lived intangible assets weighted average remaining useful lives (in years) | '3 years 3 months 18 days | ' | ' | ' | ' |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | 77 | ' | 77 | ' | 108 |
Trademarks | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | 55 | ' | 55 | ' | 55 |
Finite-Lived Intangible Assets, Accumulated Amortization | -41 | ' | -41 | ' | -31 |
Finite-Lived Intangible Assets, Net | 14 | ' | 14 | ' | 24 |
Acquired finite-lived intangible assets weighted average remaining useful lives (in years) | '2 years 2 months 12 days | ' | ' | ' | ' |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | 14 | ' | 14 | ' | 24 |
Patents and Developed Technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets: | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross Carrying Amount | 158 | ' | 158 | ' | 158 |
Finite-Lived Intangible Assets, Accumulated Amortization | -127 | ' | -127 | ' | -117 |
Finite-Lived Intangible Assets, Net | 31 | ' | 31 | ' | 41 |
Acquired finite-lived intangible assets weighted average remaining useful lives (in years) | '1 year | ' | ' | ' | ' |
Estimated amortization expense of finite-lived acquisition-related intangible assets | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | $31 | ' | $31 | ' | $41 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Liabilities, Recurring (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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) | $0 | $12 |
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | 0 | 12 |
Long-term Debt, including the current portion: | ' | ' |
Term Loans | 2,605 | 2,604 |
Senior Notes | 6,200 | 5,198 |
Convertible Notes | 475 | 474 |
Capital Leases and Other | 78 | 86 |
Total Long-term Debt, including the current portion: | 9,358 | 8,362 |
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 | 2,563 | 2,633 |
Senior Notes | 5,531 | 5,673 |
Convertible Notes | 0 | 0 |
Capital Leases and Other | 0 | 0 |
Total Long-term Debt, including the current portion: | 8,094 | 8,306 |
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) | 0 | 12 |
Total Derivative Liabilities Recorded at Fair Value in the Financial Statements | 0 | 12 |
Long-term Debt, including the current portion: | ' | ' |
Term Loans | 0 | 0 |
Senior Notes | 0 | 0 |
Convertible Notes | 818 | 647 |
Capital Leases and Other | 78 | 86 |
Total Long-term Debt, including the current portion: | $896 | $733 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Long-term debt | ' | ' | ||
Total Debt Obligations | $9,384 | $8,392 | ||
Total Unamortized Discount | -26 | -30 | ||
Carrying Value of Debt | 9,358 | 8,362 | ||
Current portion of long-term debt | -502 | -31 | ||
Long-Term Debt, less current portion | 8,856 | 8,331 | ||
Senior Secured Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 2,611 | [1] | 2,611 | [1] |
Total Unamortized Discount | -6 | -7 | ||
Tranche B-III 2019 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 815 | ' | ||
Tranche B 2020 Term Loan | ' | ' | ||
Long-term debt | ' | ' | ||
Stated interest rate (as a percent) | 4.00% | ' | ||
Total Debt Obligations | 1,796 | ' | ||
Floating Rate Senior Notes due 2018 [Member] | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 300 | 300 | ||
11.875% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 605 | 605 | ||
Total Unamortized Discount | -7 | -8 | ||
9.375% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 500 | 500 | ||
Total Unamortized Discount | -7 | -7 | ||
8.125% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 1,200 | 1,200 | ||
Total Unamortized Discount | -6 | -7 | ||
8.875% Senior Notes due 2019 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 300 | 300 | ||
8.625% Senior Notes due 2020 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 900 | 900 | ||
7.0% Senior Notes due 2020 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 775 | 775 | ||
SeniorNotes6Point125PercentDue2021 [Member] | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 640 | 640 | ||
5.37percent Senior Notes Due 2022 [Member] | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 1,000 | 0 | ||
7.0% Convertible Senior Notes due 2015 | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 200 | 200 | ||
Total Unamortized Discount | 0 | -1 | ||
7.0% Convertible Senior Notes due 2015 Series B | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 275 | 275 | ||
Capital Leases | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | 66 | 73 | ||
Other | ' | ' | ||
Long-term debt | ' | ' | ||
Total Debt Obligations | $12 | $13 | ||
[1] | * The $815 million Tranche B-III 2019 Term Loan due 2019 and the $1.796 billion Tranche B 2020 Term Loan due 2020 each had an interest rate of 4.00% as of SeptemberB 30, 2014 and DecemberB 31, 2013. |
LongTerm_Debt_Textuals_Details
Long-Term Debt - Textuals (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Oct. 13, 2014 | Dec. 31, 2014 | Oct. 06, 2014 |
Tranche B 2020 Term Loan | Tranche B-III 2019 Term Loan | 8.875% Senior Notes due 2019 | 8.875% Senior Notes due 2019 | 7.0% Senior Notes due 2020 | 7.0% Senior Notes due 2020 | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Before August 15, 2017 [Member] | Before August 15, 2017 [Member] | Before August 15, 2017 [Member] | Before August 15, 2017 [Member] | Twelve Months Beginning August 15, 2018 [Member] | Twelve Months Beginning August 15, 2019 [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Level 3 Escrow II, Inc. [Member] | Level 3 Financing, Inc. | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | Senior Notes 5.375percent Due 2022 [Member] | 2.0 Billion Senior Secured Debt [Member] | 2.0 Billion Senior Secured Debt [Member] | 2.0 Billion Senior Secured Debt [Member] | Senior Notes 6.125percent Due 2021 [Member] [Member] | |||||||||||
Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | |||||||||||||
Maximum [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | 5.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.13% |
Debt Instrument Redemption Minimum Gross Proceeds from Private or Public Offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Redemption Price as Percentage of Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105.38% | 40.00% | 60.00% | 102.69% | 101.34% | 100.00% | ' | ' | ' | ' |
Total Debt Obligations | 9,384,000,000 | 8,392,000,000 | 1,796,000,000 | 815,000,000 | 300,000,000 | 300,000,000 | 775,000,000 | 775,000,000 | 1,000,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 (remaining three months) | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 483,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 306,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | 3,426,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 5,134,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000,000 | ' | ' |
Debt Instrument, Upfront Payment as Percentage of Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($82) | $5 | $36 | $26 |
Other comprehensive income before reclassifications | -122 | -24 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 4 | 3 | ' | ' |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -53 | 41 | 67 | 56 |
Other comprehensive income before reclassifications | -120 | -15 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ' | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -29 | -36 | -31 | -30 |
Other comprehensive income before reclassifications | -2 | -9 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | $4 | $3 | ' | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
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 | $22 | $31 | $48 | $116 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 0 | -1 | 0 | 1 |
Non-cash compensation expense and capitalized non-cash compensation | 22 | 30 | 48 | 115 |
Outperform Stock Options | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 2 | 2 | 6 | 18 |
Restricted Stock Units and Shares | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 10 | 10 | 22 | 31 |
Performance Restricted Stock Units [Member] | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 4 | 0 | 7 | 0 |
401(k) Match Expense | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 6 | 6 | 18 | 19 |
Restricted Stock Unit Bonus Grant | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | 0 | 12 | -5 | 41 |
Management Incentive and Retention Plan | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
Stock-based compensation expense | $0 | $1 | $0 | $7 |
Non-qualified stock options | ' | ' | ' | ' |
Non-cash compensation expense and capitalized non-cash compensation | ' | ' | ' | ' |
OSOs outstanding | 9,000 | ' | 9,000 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | $13,983 | ' | $13,983 | ' | $12,874 |
Payments to Acquire Productive Assets | 204 | 194 | 608 | 571 | ' |
Adjusted EBITDA by Segment | 471 | 385 | 1,388 | 1,158 | ' |
Revenue | 1,629 | 1,569 | 4,863 | 4,711 | ' |
Income Tax Expense (Benefit) | -8 | -14 | -27 | -39 | ' |
Other Income | -169 | -159 | -507 | -531 | ' |
Depreciation, Depletion and Amortization | -187 | -203 | -558 | -596 | ' |
Share-based Compensation | -22 | -30 | -48 | -115 | ' |
Net Income (Loss) Available to Common Stockholders, Basic | 85 | -21 | 248 | -123 | ' |
Corporate and Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 262 | ' | 262 | ' | 266 |
Payments to Acquire Productive Assets | 19 | 21 | 102 | 76 | ' |
Adjusted EBITDA by Segment | -170 | -195 | -503 | -548 | ' |
North America [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 9,321 | ' | 9,321 | ' | 8,133 |
Payments to Acquire Productive Assets | 116 | 105 | 318 | 305 | ' |
Adjusted EBITDA by Segment | 492 | 447 | 1,460 | 1,309 | ' |
Europe [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 1,963 | ' | 1,963 | ' | 2,030 |
Payments to Acquire Productive Assets | 34 | 33 | 82 | 102 | ' |
Adjusted EBITDA by Segment | 57 | 56 | 167 | 171 | ' |
Latin America [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 2,437 | ' | 2,437 | ' | 2,445 |
Payments to Acquire Productive Assets | 35 | 35 | 106 | 88 | ' |
Adjusted EBITDA by Segment | 92 | 77 | 264 | 226 | ' |
Core Network Service [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 1,482 | 1,397 | 4,418 | 4,148 | ' |
Core Network Service [Member] | North America [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 1,063 | 987 | 3,157 | 2,924 | ' |
Core Network Service [Member] | Europe [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 219 | 222 | 673 | 665 | ' |
Core Network Service [Member] | Latin America [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 200 | 188 | 588 | 559 | ' |
Wholesale Voice Services and Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 147 | 172 | 445 | 563 | ' |
Wholesale Voice Services and Other [Member] | North America [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 128 | 162 | 410 | 530 | ' |
Wholesale Voice Services and Other [Member] | Europe [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | 4 | 8 | 14 | 25 | ' |
Wholesale Voice Services and Other [Member] | Latin America [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Revenue | $15 | $2 | $21 | $8 | ' |
Commitments_Contingencies_and_1
Commitments, Contingencies and Other Items - Lawsuits (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Peruvian Tax Litigation | Peruvian Tax Litigation | Peruvian Tax Litigation, Before Interest | Peruvian Tax Litigation, Income Tax witholding 2001 and 2002 | Peruvian Tax Litigation, VAT for 2001 and 2002 | Peruvian Tax Litigation, Disallowance of VAT in 2005 | Employee Severance and Contractor Termination Disputes | up to | Brazilian Tax Reserve Release [Member] | |
Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Brazilian Tax Claims | Brazilian Tax Claims | ||
Pending Litigation | Pending Litigation | |||||||||
Loss Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Litigation Liability | $191 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Asserted Claim | ' | ' | 57 | 26 | 3 | 7 | 16 | 43 | ' | ' |
Loss Contingency Accrual, Period Increase (Decrease) | ' | 28 | ' | ' | ' | ' | ' | ' | ' | 6 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | ' | ' | ' | ' | ' | ' | ' | ' | $59 | ' |
Commitments_Contingencies_and_2
Commitments, Contingencies and Other Items - Other Commitments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Amount outstanding under letters of credit or other similar obligations | $26 | $29 |
Collateralized by cash, that is reflected on the consolidated balance sheets as restricted cash | $22 | $25 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | $1,629 | $1,569 | $4,863 | $4,711 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 607 | 608 | 1,834 | 1,853 |
Network Related Expenses | 307 | 314 | 901 | 916 |
Depreciation and Amortization | 187 | 203 | 558 | 596 |
Selling, General and Administrative Expenses | 266 | 292 | 788 | 899 |
Total Costs and Expenses | 1,367 | 1,417 | 4,081 | 4,264 |
Operating Income (Loss) | 262 | 152 | 782 | 447 |
Interest Income, Other | 1 | 0 | 1 | 0 |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | -159 | -165 | -459 | -501 |
Interest income (expense) affiliates, net | 0 | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Other, net | -11 | 6 | -49 | -30 |
Total Other Expense | -169 | -159 | -507 | -531 |
Income (Loss) before Income Taxes | 93 | -7 | 275 | -84 |
Income Tax Expense | -8 | -14 | -27 | -39 |
Net Income (Loss) | 85 | -21 | 248 | -123 |
Other Comprehensive Income (Loss), Net of Income Taxes | -137 | 42 | -118 | -21 |
Comprehensive Income (Loss) | -52 | 21 | 130 | -144 |
Level 3 Communications, Inc. | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 0 | ' | 0 | 0 |
Network Related Expenses | 0 | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Selling, General and Administrative Expenses | 6 | 1 | 7 | 2 |
Total Costs and Expenses | 6 | 1 | 7 | 2 |
Operating Income (Loss) | -6 | -1 | -7 | -2 |
Interest Income, Other | 0 | ' | 0 | ' |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | -34 | -38 | -102 | -114 |
Interest income (expense) affiliates, net | 314 | 274 | 905 | 819 |
Equity in net earnings (losses) of subsidiaries | -189 | -255 | -548 | -825 |
Other, net | 0 | 0 | 0 | 0 |
Total Other Expense | 91 | -19 | 255 | -120 |
Income (Loss) before Income Taxes | 85 | -20 | 248 | -122 |
Income Tax Expense | 0 | -1 | 0 | -1 |
Net Income (Loss) | 85 | -21 | 248 | -123 |
Other Comprehensive Income (Loss), Net of Income Taxes | -137 | 42 | -118 | -21 |
Comprehensive Income (Loss) | -52 | 21 | 130 | -144 |
Level 3 Financing, Inc. | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 0 | ' | 0 | 0 |
Network Related Expenses | 0 | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Selling, General and Administrative Expenses | 0 | 1 | 1 | 1 |
Total Costs and Expenses | 0 | 1 | 1 | 1 |
Operating Income (Loss) | 0 | -1 | -1 | -1 |
Interest Income, Other | 0 | ' | 0 | ' |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | -112 | -123 | -337 | -374 |
Interest income (expense) affiliates, net | 452 | 429 | 1,370 | 1,284 |
Equity in net earnings (losses) of subsidiaries | -528 | -542 | -1,577 | -1,715 |
Other, net | 0 | -18 | 0 | -19 |
Total Other Expense | -188 | -254 | -544 | -824 |
Income (Loss) before Income Taxes | -188 | -255 | -545 | -825 |
Income Tax Expense | -1 | 0 | -3 | 0 |
Net Income (Loss) | -189 | -255 | -548 | -825 |
Other Comprehensive Income (Loss), Net of Income Taxes | 0 | 42 | 0 | -21 |
Comprehensive Income (Loss) | -189 | -213 | -548 | -846 |
Level 3 Communications, LLC | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 781 | 711 | 2,278 | 2,090 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 291 | 264 | 869 | 781 |
Network Related Expenses | 195 | 194 | 567 | 572 |
Depreciation and Amortization | 70 | 73 | 209 | 215 |
Selling, General and Administrative Expenses | 181 | 191 | 505 | 606 |
Total Costs and Expenses | 737 | 722 | 2,150 | 2,174 |
Operating Income (Loss) | 44 | -11 | 128 | -84 |
Interest Income, Other | 0 | ' | 0 | ' |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | -1 | -1 | -1 | -2 |
Interest income (expense) affiliates, net | -730 | -670 | -2,169 | -2,008 |
Equity in net earnings (losses) of subsidiaries | 162 | 122 | 502 | 398 |
Other, net | 2 | 1 | 6 | 3 |
Total Other Expense | -567 | -548 | -1,662 | -1,609 |
Income (Loss) before Income Taxes | -523 | -559 | -1,534 | -1,693 |
Income Tax Expense | 0 | -1 | -1 | -2 |
Net Income (Loss) | -523 | -560 | -1,535 | -1,695 |
Other Comprehensive Income (Loss), Net of Income Taxes | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss) | -523 | -560 | -1,535 | -1,695 |
Other Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | 901 | 919 | 2,750 | 2,803 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | 369 | 405 | 1,130 | 1,254 |
Network Related Expenses | 112 | 120 | 334 | 344 |
Depreciation and Amortization | 117 | 130 | 349 | 381 |
Selling, General and Administrative Expenses | 79 | 99 | 275 | 290 |
Total Costs and Expenses | 677 | 754 | 2,088 | 2,269 |
Operating Income (Loss) | 224 | 165 | 662 | 534 |
Interest Income, Other | 1 | ' | 1 | ' |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | -12 | -3 | -19 | -11 |
Interest income (expense) affiliates, net | -36 | -33 | -106 | -95 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Other, net | -13 | 23 | -55 | -14 |
Total Other Expense | -60 | -13 | -179 | -120 |
Income (Loss) before Income Taxes | 164 | 152 | 483 | 414 |
Income Tax Expense | -7 | -12 | -23 | -36 |
Net Income (Loss) | 157 | 140 | 460 | 378 |
Other Comprehensive Income (Loss), Net of Income Taxes | -137 | 42 | -118 | -21 |
Comprehensive Income (Loss) | 20 | 182 | 342 | 357 |
Eliminations | ' | ' | ' | ' |
Condensed Consolidating Financial Information | ' | ' | ' | ' |
Revenue | -53 | -61 | -165 | -182 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of Revenue | -53 | -61 | -165 | -182 |
Network Related Expenses | 0 | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Selling, General and Administrative Expenses | 0 | 0 | 0 | 0 |
Total Costs and Expenses | -53 | -61 | -165 | -182 |
Operating Income (Loss) | 0 | 0 | 0 | 0 |
Interest Income, Other | 0 | ' | 0 | ' |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | 0 | 0 | 0 | 0 |
Interest income (expense) affiliates, net | 0 | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | 555 | 675 | 1,623 | 2,142 |
Other, net | 0 | 0 | 0 | 0 |
Total Other Expense | 555 | 675 | 1,623 | 2,142 |
Income (Loss) before Income Taxes | 555 | 675 | 1,623 | 2,142 |
Income Tax Expense | 0 | 0 | 0 | 0 |
Net Income (Loss) | 555 | 675 | 1,623 | 2,142 |
Other Comprehensive Income (Loss), Net of Income Taxes | 137 | -84 | 118 | 42 |
Comprehensive Income (Loss) | $692 | $591 | $1,741 | $2,184 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Balance Sheets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $729 | $631 | $507 | $979 |
Restricted cash and securities | 1,020 | 7 | ' | ' |
Receivables, less allowances for doubtful accounts | 678 | 673 | ' | ' |
Due from affiliates | 0 | 0 | ' | ' |
Other | 173 | 143 | ' | ' |
Total Current Assets | 2,600 | 1,454 | ' | ' |
Property, Plant and Equipment, net | 8,268 | 8,240 | ' | ' |
Restricted Cash and Securities | 21 | 23 | ' | ' |
Goodwill and Other Intangibles Assets, net | 2,724 | 2,782 | ' | ' |
Investment in Subsidiaries | 0 | 0 | ' | ' |
Other Assets, net | 370 | 375 | ' | ' |
Total Assets | 13,983 | 12,874 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 607 | 625 | ' | ' |
Current portion of long-term debt | 502 | 31 | ' | ' |
Accrued payroll and employee benefits | 165 | 209 | ' | ' |
Accrued interest | 184 | 160 | ' | ' |
Current portion of deferred revenue | 244 | 253 | ' | ' |
Due to affiliates | 0 | 0 | ' | ' |
Other | 151 | 168 | ' | ' |
Total Current Liabilities | 1,853 | 1,446 | ' | ' |
Long-Term Debt, less current portion | 8,856 | 8,331 | ' | ' |
Deferred Revenue, less current portion | 877 | 906 | ' | ' |
Other Liabilities | 749 | 780 | ' | ' |
Commitments and Contingencies | 0 | 0 | ' | ' |
Stockholders' Equity (Deficit) | 1,648 | 1,411 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 13,983 | 12,874 | ' | ' |
Level 3 Communications, Inc. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 7 | 8 | 9 | 253 |
Restricted cash and securities | 0 | 0 | ' | ' |
Receivables, less allowances for doubtful accounts | 0 | 0 | ' | ' |
Due from affiliates | 16,348 | 15,507 | ' | ' |
Other | 3 | 2 | ' | ' |
Total Current Assets | 16,358 | 15,517 | ' | ' |
Property, Plant and Equipment, net | 0 | 0 | ' | ' |
Restricted Cash and Securities | 3 | 3 | ' | ' |
Goodwill and Other Intangibles Assets, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | 10,127 | 10,039 | ' | ' |
Other Assets, net | 8 | 10 | ' | ' |
Total Assets | 26,496 | 25,569 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 2 | 0 | ' | ' |
Current portion of long-term debt | 475 | 0 | ' | ' |
Accrued payroll and employee benefits | 0 | 0 | ' | ' |
Accrued interest | 46 | 30 | ' | ' |
Current portion of deferred revenue | 0 | 0 | ' | ' |
Due to affiliates | 0 | 0 | ' | ' |
Other | 0 | 0 | ' | ' |
Total Current Liabilities | 523 | 30 | ' | ' |
Long-Term Debt, less current portion | 898 | 1,370 | ' | ' |
Deferred Revenue, less current portion | 0 | 0 | ' | ' |
Other Liabilities | 15 | 15 | ' | ' |
Commitments and Contingencies | ' | ' | ' | ' |
Stockholders' Equity (Deficit) | 25,060 | 24,154 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 26,496 | 25,569 | ' | ' |
Level 3 Financing, Inc. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 5 | 6 | 6 | 5 |
Restricted cash and securities | 0 | 0 | ' | ' |
Receivables, less allowances for doubtful accounts | 0 | 0 | ' | ' |
Due from affiliates | 17,921 | 16,886 | ' | ' |
Other | 16 | 15 | ' | ' |
Total Current Assets | 17,942 | 16,907 | ' | ' |
Property, Plant and Equipment, net | 0 | 0 | ' | ' |
Restricted Cash and Securities | 0 | 0 | ' | ' |
Goodwill and Other Intangibles Assets, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | 8,794 | 27,014 | ' | ' |
Other Assets, net | 100 | 113 | ' | ' |
Total Assets | 26,836 | 44,034 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 0 | 2 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accrued payroll and employee benefits | 0 | 0 | ' | ' |
Accrued interest | 131 | 129 | ' | ' |
Current portion of deferred revenue | 0 | 0 | ' | ' |
Due to affiliates | 0 | 0 | ' | ' |
Other | 1 | 13 | ' | ' |
Total Current Liabilities | 132 | 144 | ' | ' |
Long-Term Debt, less current portion | 6,907 | 6,905 | ' | ' |
Deferred Revenue, less current portion | 0 | 0 | ' | ' |
Other Liabilities | 29 | 27 | ' | ' |
Commitments and Contingencies | ' | ' | ' | ' |
Stockholders' Equity (Deficit) | 19,768 | 36,958 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 26,836 | 44,034 | ' | ' |
Level 3 Communications, LLC | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 524 | 347 | 289 | 386 |
Restricted cash and securities | 1 | 1 | ' | ' |
Receivables, less allowances for doubtful accounts | 48 | 79 | ' | ' |
Due from affiliates | 0 | 0 | ' | ' |
Other | 63 | 47 | ' | ' |
Total Current Assets | 636 | 474 | ' | ' |
Property, Plant and Equipment, net | 3,112 | 3,028 | ' | ' |
Restricted Cash and Securities | 16 | 18 | ' | ' |
Goodwill and Other Intangibles Assets, net | 376 | 395 | ' | ' |
Investment in Subsidiaries | 3,731 | 3,735 | ' | ' |
Other Assets, net | 10 | 11 | ' | ' |
Total Assets | 7,881 | 7,661 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 236 | 42 | ' | ' |
Current portion of long-term debt | 2 | 3 | ' | ' |
Accrued payroll and employee benefits | 128 | 171 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Current portion of deferred revenue | 124 | 131 | ' | ' |
Due to affiliates | 33,869 | 32,165 | ' | ' |
Other | 67 | 74 | ' | ' |
Total Current Liabilities | 34,426 | 32,586 | ' | ' |
Long-Term Debt, less current portion | 17 | 17 | ' | ' |
Deferred Revenue, less current portion | 570 | 603 | ' | ' |
Other Liabilities | 119 | 135 | ' | ' |
Commitments and Contingencies | ' | ' | ' | ' |
Stockholders' Equity (Deficit) | -27,251 | -25,680 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 7,881 | 7,661 | ' | ' |
Other Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 193 | 270 | 203 | 335 |
Restricted cash and securities | 1,019 | 6 | ' | ' |
Receivables, less allowances for doubtful accounts | 630 | 594 | ' | ' |
Due from affiliates | 0 | 0 | ' | ' |
Other | 91 | 79 | ' | ' |
Total Current Assets | 1,933 | 949 | ' | ' |
Property, Plant and Equipment, net | 5,156 | 5,212 | ' | ' |
Restricted Cash and Securities | 2 | 2 | ' | ' |
Goodwill and Other Intangibles Assets, net | 2,348 | 2,387 | ' | ' |
Investment in Subsidiaries | 0 | 0 | ' | ' |
Other Assets, net | 252 | 241 | ' | ' |
Total Assets | 9,691 | 8,791 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Accounts payable | 369 | 581 | ' | ' |
Current portion of long-term debt | 25 | 28 | ' | ' |
Accrued payroll and employee benefits | 37 | 38 | ' | ' |
Accrued interest | 7 | 1 | ' | ' |
Current portion of deferred revenue | 120 | 122 | ' | ' |
Due to affiliates | 400 | 228 | ' | ' |
Other | 83 | 81 | ' | ' |
Total Current Liabilities | 1,041 | 1,079 | ' | ' |
Long-Term Debt, less current portion | 1,034 | 39 | ' | ' |
Deferred Revenue, less current portion | 307 | 303 | ' | ' |
Other Liabilities | 586 | 603 | ' | ' |
Commitments and Contingencies | ' | ' | ' | ' |
Stockholders' Equity (Deficit) | 6,723 | 6,767 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | 9,691 | 8,791 | ' | ' |
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 | -34,269 | -32,393 | ' | ' |
Other | 0 | 0 | ' | ' |
Total Current Assets | -34,269 | -32,393 | ' | ' |
Property, Plant and Equipment, net | 0 | 0 | ' | ' |
Restricted Cash and Securities | 0 | 0 | ' | ' |
Goodwill and Other Intangibles Assets, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | -22,652 | -40,788 | ' | ' |
Other Assets, net | 0 | 0 | ' | ' |
Total Assets | -56,921 | -73,181 | ' | ' |
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 | -34,269 | -32,393 | ' | ' |
Other | 0 | 0 | ' | ' |
Total Current Liabilities | -34,269 | -32,393 | ' | ' |
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) | -22,652 | -40,788 | ' | ' |
Total Liabilities and Stockholdersb Equity (Deficit) | ($56,921) | ($73,181) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Statements of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | $765 | $327 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -608 | -571 |
(Increase) decrease in restricted cash and securities, net | -10 | 13 |
Proceeds from Sale of Property, Plant, and Equipment and other assets | 3 | 16 |
Other | 2 | 14 |
Net Cash Provided by (Used in) Investing Activities | -617 | -556 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | -1 | 590 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -8 | -810 |
Increase (decrease) due from-to affiliates, net | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | -9 | -220 |
Effect of Exchange Rates on Cash and Cash Equivalents | -41 | -23 |
Net Change in Cash and Cash Equivalents | 98 | -472 |
Cash and Cash Equivalents at Beginning of Period | 631 | 979 |
Cash and Cash Equivalents at End of Period | 729 | 507 |
Level 3 Communications, Inc. | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -91 | -105 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | 0 | 0 |
(Increase) decrease in restricted cash and securities, net | 0 | 9 |
Proceeds from Sale of Property, Plant, and Equipment and other assets | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | 0 | 9 |
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 | -172 |
Increase (decrease) due from-to affiliates, net | 90 | 24 |
Net Cash Provided by (Used in) Financing Activities | 90 | -148 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 |
Net Change in Cash and Cash Equivalents | -1 | -244 |
Cash and Cash Equivalents at Beginning of Period | 8 | 253 |
Cash and Cash Equivalents at End of Period | 7 | 9 |
Level 3 Financing, Inc. | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -336 | -441 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | 0 | 0 |
(Increase) decrease in restricted cash and securities, net | 0 | 0 |
Proceeds from 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 | 590 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | 0 | -607 |
Increase (decrease) due from-to affiliates, net | 335 | 459 |
Net Cash Provided by (Used in) Financing Activities | 335 | 442 |
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 | 6 | 5 |
Cash and Cash Equivalents at End of Period | 5 | 6 |
Level 3 Communications, LLC | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 443 | 298 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -261 | -235 |
(Increase) decrease in restricted cash and securities, net | 1 | 0 |
Proceeds from Sale of Property, Plant, and Equipment and other assets | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | -260 | -235 |
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 | -4 |
Increase (decrease) due from-to affiliates, net | -6 | -156 |
Net Cash Provided by (Used in) Financing Activities | -6 | -160 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 |
Net Change in Cash and Cash Equivalents | 177 | -97 |
Cash and Cash Equivalents at Beginning of Period | 347 | 386 |
Cash and Cash Equivalents at End of Period | 524 | 289 |
Other Non-Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 749 | 575 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -347 | -336 |
(Increase) decrease in restricted cash and securities, net | -11 | 4 |
Proceeds from Sale of Property, Plant, and Equipment and other assets | 3 | 16 |
Other | 2 | 14 |
Net Cash Provided by (Used in) Investing Activities | -357 | -330 |
Cash Flows from Financing Activities: | ' | ' |
Long-term debt borrowings, net of issuance costs | -1 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -8 | -27 |
Increase (decrease) due from-to affiliates, net | -419 | -327 |
Net Cash Provided by (Used in) Financing Activities | -428 | -354 |
Effect of Exchange Rates on Cash and Cash Equivalents | -41 | -23 |
Net Change in Cash and Cash Equivalents | -77 | -132 |
Cash and Cash Equivalents at Beginning of Period | 270 | 335 |
Cash and Cash Equivalents at End of Period | 193 | 203 |
Eliminations | ' | ' |
Condensed Consolidating Financial Information | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | 0 | 0 |
(Increase) decrease in restricted cash and securities, net | 0 | 0 |
Proceeds from 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 |
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_Subsequent_E
Subsequent Events Subsequent Events (Details) (Subsequent Event [Member], USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | Oct. 13, 2014 | Oct. 06, 2014 | Dec. 31, 2014 | |
Level 3 Financing [Member] | Level 3 Financing [Member] | Level 3 Financing [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
2.0 Billion Senior Secured Debt [Member] | 2.0 Billion Senior Secured Debt [Member] | Senior Notes 6.125percent Due 2021 [Member] [Member] | Level 3 Financing [Member] | |||
2.0 Billion Senior Secured Debt [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | 31-Oct-14 | ' | ' | ' | ' | ' |
Business Acquisition, Share Price | ' | $46.91 | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | ' | $1,793,000,000 | ' | ' | ' | ' |
Business Combination, Consideration Transferred | 8,100,000,000 | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | $2,000,000,000 | ' | ' |
Debt Instrument, Upfront Payment as Percentage of Principal Amount | ' | ' | 0.75% | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | 'LIBOR |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | 3.50% |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | ' | ' | ' | ' | ' | 1.00% |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | 6.13% | ' |