Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 26, 2015 | Jun. 30, 2014 |
Entity Information [Line Items] | |||
Entity Registrant Name | LEVEL 3 COMMUNICATIONS INC | ||
Entity Central Index Key | 794323 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $5,814 | ||
Entity Common Stock, Shares Outstanding | 345,534,473 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $6,777 | $6,313 | $6,376 |
Costs and Expenses: | |||
Network Access Costs | 2,529 | 2,471 | 2,602 |
Network Related Expenses | 1,246 | 1,214 | 1,249 |
Depreciation and Amortization | 808 | 800 | 749 |
Selling, General and Administrative Expenses | 1,181 | 1,162 | 1,201 |
Total Costs and Expenses | 5,764 | 5,647 | 5,801 |
Operating Income (Loss) | 1,013 | 666 | 575 |
Other Income (Expense): | |||
Interest income | 1 | 0 | 2 |
Interest expense | -654 | -649 | -733 |
Loss on modification and extinguishment of debt, net | -53 | -84 | -160 |
Other, net | -69 | -4 | -58 |
Total Other Expense | -775 | -737 | -949 |
Income (Loss) Before Income Taxes | 238 | -71 | -374 |
Income Tax Benefit (Expense) | 76 | -38 | -48 |
Net income (loss) | $314 | ($109) | ($422) |
Earnings Per Share, Basic | $1.23 | ($0.49) | ($1.96) |
Weighted Average Number of Shares Outstanding, Basic | 254,428 | 222,368 | 215,356 |
Earnings Per Share, Diluted | $1.21 | ($0.49) | ($1.96) |
Weighted Average Number of Shares Outstanding, Diluted | 258,483 | 222,368 | 215,356 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income (Loss) | $314 | ($109) | ($422) |
Other Comprehensive Income (Loss) Before Income Taxes: | |||
Foreign Currency Translation | -178 | 11 | 17 |
Holding Gain (Loss) on Interest Rate Swaps, including Reclassification Gains (Losses) | 0 | 0 | 25 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | 0 | 65 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | -5 | -1 | -1 |
Other Comprehensive Income (Loss) Before Income Taxes | -183 | 10 | 106 |
Income Tax Related to Items of Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Income Taxes | -183 | 10 | 106 |
Comprehensive Income (Loss) | $131 | ($99) | ($316) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $580 | $631 |
Restricted cash and securities | 7 | 7 |
Receivables, less allowances for doubtful accounts of $30 and $32, respectively | 737 | 673 |
Other | 165 | 143 |
Total Current Assets | 1,489 | 1,454 |
Property, plant and equipment, net of accumulated depreciation of $9,629 and $9,089, respectively | 9,860 | 8,240 |
Restricted Cash and Securities | 20 | 23 |
Goodwill | 7,689 | 2,577 |
Other Intangibles, net | 1,414 | 205 |
Other Assets, net | 475 | 375 |
Total Assets | 20,947 | 12,874 |
Liabilities: | ||
Accounts payable | 664 | 625 |
Current portion of long-term debt | 349 | 31 |
Accrued payroll and employee benefits | 273 | 209 |
Accrued interest | 174 | 160 |
Current portion of deferred revenue | 287 | 253 |
Other | 167 | 168 |
Total Current Liabilities | 1,914 | 1,446 |
Long-Term Debt, less current portion | 10,984 | 8,331 |
Deferred Revenue, less current portion | 921 | 906 |
Other Liabilities | 765 | 780 |
Total Liabilities | 14,584 | 11,463 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Preferred stock, $.01 par value, authorized 10,000,000 shares: no shares issued or outstanding | 0 | 0 |
Common stock, $.01 par value, authorized 433,333,333 shares at December 31, 2014 and 343,333,333 shares at December 31, 2013; 341,361,420 shares issued and outstanding at December 31, 2014 and 234,688,063 shares issued and outstanding at December 31, 2013 | 3 | 2 |
Additional paid-in capital | 19,159 | 14,339 |
Accumulated other comprehensive income (loss) | -147 | 36 |
Accumulated deficit | -12,652 | -12,966 |
Total Stockholders’ Equity | 6,363 | 1,411 |
Total Liabilities and Stockholders’ Equity | $20,947 | $12,874 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $30 | $32 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $9,629 | $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 | 433,333,333 | 343,333,333 |
Common stock, shares issued | 341,361,420 | 234,688,063 |
Common stock, shares outstanding | 341,361,420 | 234,688,063 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $314 | ($109) | ($422) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 808 | 800 | 749 |
Asset retirement obligation adjustment | 0 | 0 | -47 |
Loss on impairment | 18 | 7 | 0 |
Non-cash compensation expense attributable to stock awards | 73 | 151 | 135 |
Loss on modification and extinguishment of debt, net | 53 | 84 | 160 |
Loss on interest rate swaps | 0 | 0 | 60 |
Accretion of debt discount and amortization of debt issuance costs | 36 | 36 | 46 |
Accrued interest on long-term debt, net | 12 | -49 | -5 |
Non-cash tax adjustments | -7 | -42 | -14 |
Deferred income taxes | -116 | -29 | 21 |
Gain on sale of property, plant, and equipment and other assets | -3 | -2 | -1 |
Other, net | -8 | -41 | -23 |
Changes in working capital items: | |||
Receivables | 9 | 30 | -86 |
Other current assets | 2 | 3 | -5 |
Payables | -77 | -162 | 18 |
Deferred revenue | 6 | 28 | -10 |
Other current liabilities | 41 | 8 | 2 |
Net Cash Provided by Operating Activities | 1,161 | 713 | 578 |
Cash Flows from Investing Activities: | |||
Capital expenditures | -910 | -760 | -743 |
Decrease (increase) in restricted cash and securities, net | -10 | 13 | 20 |
Proceeds from sale of property, plant and equipment and other assets | 3 | 0 | 0 |
Investment in tw telecom, net of cash acquired | -167 | 0 | 0 |
Other | -2 | 2 | -2 |
Net Cash Used in Investing Activities | -1,086 | -745 | -725 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | 589 | 1,502 | 4,504 |
Payments on and repurchases of long-term debt, including current portion and refinancing costs | -671 | -1,796 | -4,302 |
Proceeds from Stock Options Exercised | 0 | 0 | 5 |
Net Cash Provided by (Used in) Financing Activities | -82 | -294 | 207 |
Effect of Exchange Rates on Cash and Cash Equivalents | -44 | -22 | 1 |
Net Change in Cash and Cash Equivalents | -51 | -348 | 61 |
Cash and Cash Equivalents at Beginning of Year | 631 | 979 | 918 |
Cash and Cash Equivalents at End of Year | 580 | 631 | 979 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash interest paid | 598 | 674 | 695 |
Income taxes paid, net of refunds | 44 | 33 | 32 |
Non-cash Investing and Financing Activities: | |||
Capital lease obligations incurred | 2 | 13 | 0 |
Notes issued for property | 0 | 12 | 0 |
Long-term debt conversion into equity | 142 | 200 | 100 |
Premium on long-term debt conversion into equity | 0 | 0 | 39 |
Accrued interest conversion into equity | 2 | 3 | 2 |
Long-term debt issued and proceeds placed in escrow | 3,000 | 0 | 0 |
Escrowed Securities used in the acquisition of tw telecom | $3,014 | $0 | $0 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes In Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Millions, except Share data, unless otherwise specified | |||||
Beginning balance at Dec. 31, 2011 | $1,193 | $2 | $13,706 | ($80) | ($12,435) |
Beginning balance (in shares) at Dec. 31, 2011 | 207,913,428 | ||||
Common Stock | |||||
Common stock issued under employee stock benefit plans and other | 88 | 0 | 88 | 0 | 0 |
Common stock issued under employee stock benefit plans and other (in shares) | 5,019,513 | ||||
Stock-based compensation expense | 67 | 0 | 67 | 0 | 0 |
Conversion of debt to equity | 139 | 0 | 139 | 0 | 0 |
Conversion of debt to equity (in shares) | 5,447,129 | ||||
Net Income (Loss) | -422 | 0 | 0 | 0 | -422 |
Other Comprehensive Income (Loss) | 106 | 0 | 0 | 106 | 0 |
Ending balance at Dec. 31, 2012 | 1,171 | 2 | 14,000 | 26 | -12,857 |
Ending balance (in shares) at Dec. 31, 2012 | 218,380,070 | ||||
Common Stock | |||||
Common stock issued under employee stock benefit plans and other | 70 | 0 | 70 | 0 | 0 |
Common stock issued under employee stock benefit plans and other (in shares) | 5,493,729 | ||||
Stock-based compensation expense | 69 | 0 | 69 | 0 | 0 |
Conversion of debt to equity | 200 | 0 | 200 | 0 | 0 |
Conversion of debt to equity (in shares) | 10,814,264 | ||||
Net Income (Loss) | -109 | 0 | 0 | 0 | -109 |
Other Comprehensive Income (Loss) | 10 | 0 | 0 | 10 | 0 |
Ending balance at Dec. 31, 2013 | 1,411 | 2 | 14,339 | 36 | -12,966 |
Ending balance (in shares) at Dec. 31, 2013 | 234,688,063 | 234,688,063 | |||
Common Stock | |||||
Common stock issued under employee stock benefit plans and other | 78 | 0 | 78 | 0 | 0 |
Common stock issued under employee stock benefit plans and other (in shares) | 4,528,559 | ||||
Stock-based compensation expense | 55 | 0 | 55 | 0 | 0 |
tw telecom acquisition equity consideration | 4,544 | 1 | 4,543 | 0 | 0 |
tw telecom acquisition equity consideration (in shares) | 96,868,883 | ||||
Conversion of debt to equity | 144 | 0 | 144 | 0 | 0 |
Conversion of debt to equity (in shares) | 5,275,915 | ||||
Net Income (Loss) | 314 | 0 | 0 | 0 | 314 |
Other Comprehensive Income (Loss) | -183 | 0 | 0 | -183 | 0 |
Ending balance at Dec. 31, 2014 | $6,363 | $3 | $19,159 | ($147) | ($12,652) |
Ending balance (in shares) at Dec. 31, 2014 | 341,361,420 | 341,361,420 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 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 a facilities-based provider (that is, a provider that owns or leases a substantial portion of the plant, property and equipment necessary to provide its services) of a broad range of integrated communications services. The Company created its communications network by constructing its own assets and through a combination of purchasing other companies and purchasing or leasing facilities from others. Level 3's network is an international, facilities-based communications network. The Company designed its network to provide communications services that employ and take advantage of rapidly improving underlying optical, Internet Protocol, computing and storage technologies. | ||||||||||
On October 31, 2014, the Company completed the acquisition of tw telecom inc. (“tw telecom”) and tw telecom became an indirect, wholly owned subsidiary of the Company through a tax-free, stock and cash reorganization (the "Merger"). See Note 2 - Events Associated with the Merger of tw telecom. | ||||||||||
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 where it is required to consolidate the entity as the primary beneficiary or where it has concluded it is not the primary beneficiary. | ||||||||||
Foreign Currency Translation | ||||||||||
Local currencies of foreign subsidiaries are the functional currencies for financial reporting purposes except for certain foreign subsidiaries in Latin America. For operations outside the United States that have functional currencies other than the U.S. dollar, assets and liabilities are translated to U.S. dollars at period-end exchange rates, and revenue, expenses and cash flows are translated using average exchange rates prevailing during the year. A significant portion of the Company's non-United States subsidiaries have either the British pound, the euro or the Brazilian real as the functional currency, each of which experienced significant fluctuations against the U.S. dollar during 2014, 2013 and 2012. Foreign currency translation gains and losses are recognized as a component of accumulated other comprehensive income (loss) in stockholders' equity and in the Consolidated Statements of Comprehensive Income (Loss) in accordance with accounting guidance for foreign currency translation. The Company considers the majority of its investments in its foreign subsidiaries to be long-term in nature. The Company's non-United States exchange transaction gains (losses), including where transactions with its non-United States subsidiaries are not considered to be long-term in nature, are included within other income (expense) in Other, net on the Consolidated Statements of Operations. | ||||||||||
Reclassifications | ||||||||||
Certain amounts in the prior year Consolidated Financial Statements and accompanying footnotes have been reclassified to conform to the current year's presentation. | ||||||||||
Use of Estimates | ||||||||||
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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require management's judgments include revenue recognition, revenue reserves, network access costs, network access cost dispute reserves, determination of the useful lives of long-lived assets, measurement and recognition of stock-based compensation expense, valuation of long-lived assets, goodwill and acquired indefinite-lived intangible assets for purposes of impairment testing, valuation of asset retirement obligations, allowance for doubtful accounts, measurement of the fair value of assets acquired and liabilities assumed in business combinations, accruals for estimated tax and legal liabilities, and valuation allowance for deferred tax assets. Actual results could differ from these estimates under different assumptions or conditions and such differences could be material. | ||||||||||
Revenue | ||||||||||
Revenue is recognized monthly as the services are provided based on contractual amounts expected to be collected. Management establishes appropriate revenue reserves at the time services are rendered based on an analysis of historical credit activity to address, where significant, situations in which collection is not reasonably assured as a result of credit risk, potential billing disputes or other reasons. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material. | ||||||||||
Intercarrier compensation revenue is recognized when an interconnection agreement is in place with another carrier, or if an agreement has expired, when the parties have agreed to continue operating under the previous agreement until a new agreement is negotiated and executed, or at rates mandated by the Federal Communications Commission (the "FCC"). | ||||||||||
For certain sale and long-term indefeasible right of use, or IRU, contracts involving private line, wavelengths and dark fiber services, the Company may receive upfront payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract. | ||||||||||
Termination revenue is recognized when a customer discontinues service prior to the end of the contract period for which Level 3 had previously received consideration and for which revenue recognition was deferred. Termination revenue also is recognized when customers are required to make termination penalty payments to Level 3 to settle contractually committed purchase amounts that the customer no longer expects to meet or when a customer and Level 3 renegotiate a contract under which Level 3 is no longer obligated to provide services for consideration previously received and for which revenue recognition has been deferred. | ||||||||||
The Company is obligated under dark fiber IRUs and other capacity agreements to maintain its network in efficient working order and in accordance with industry standards. Customers are obligated for the term of the agreement to pay for their allocable share of the costs for operating and maintaining the network. The Company recognizes this revenue monthly as services are provided. | ||||||||||
Level 3's customer contracts require the Company to meet certain service level commitments. If Level 3 does not meet the required service levels, it may be obligated to provide credits, usually in the form of free service, for a short period of time. The credits are a reduction to revenue and, to date, have not been material. | ||||||||||
Network Access Costs | ||||||||||
Network Access Costs for the communications business include leased capacity, 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, but excludes 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 Company recognizes the network access costs as they are incurred in accordance with contractual requirements. The Company disputes incorrect billings from its suppliers of network services. The most prevalent types of disputes include disputes for circuits that are not disconnected by the supplier on a timely basis and usage bills with incorrect or inadequate information. Depending on the type and complexity of the issues involved, it may and often does take several quarters to resolve the disputes. The Company establishes appropriate network access costs reserves for disputed supplier billings based on an analysis of historical experience in resolving disputes with its suppliers. | ||||||||||
In determining the amount of the network access costs and related accrued liabilities to reflect in its Consolidated Financial Statements, the Company considers the adequacy of documentation of disconnect notices, compliance with prevailing contractual requirements for submitting these disconnect notices and disputes to the provider of the network services, and compliance with its interconnection agreements with these carriers. Judgment is required in estimating the ultimate outcome of the dispute resolution process, as well as any other amounts that may be incurred to conclude the negotiations or settle any litigation. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material. | ||||||||||
Network Related Expenses | ||||||||||
Network Related Expenses includes certain expenses associated with the delivery of services to customers and the operation and maintenance of the Level 3 network, such as facility rent, utilities, maintenance and other costs, each related to the operation of its 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, operation and maintenance of its communications network, and accretion expense on asset retirement obligations, but excludes depreciation and amortization. | ||||||||||
Selling, General and Administrative Expenses | ||||||||||
Selling, General and Administrative Expenses includes 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. | ||||||||||
USF and Gross Receipts Taxes | ||||||||||
The revenue recognition standards include guidance relating to any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, gross receipts taxes and certain state regulatory fees. The Company records Universal Service Fund ("USF") contributions where the Company is the primary obligor for the taxes assessed in each jurisdiction where it does business on a gross basis in its Consolidated Statements of Operations, but generally records gross receipts taxes and certain state regulatory fees billed to its customers on a net basis in its Consolidated Statements of Operations. Total revenue and network access cost on the Consolidated Statements of Operations includes USF contributions totaling $234 million, $194 million and $191 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
Stock-Based Compensation | ||||||||||
The Company recognizes the estimated fair value of stock-based compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award, which is generally the vesting term or term for restrictions on transfer that lapse, as the case may be. The Company funded a portion of its 2013 and 2012 discretionary bonus in restricted stock unit awards that vested upon issuance. The Company estimates forfeiture rates based on its historical experience for the type of award, adjusted for expected activities as necessary. | ||||||||||
Income Taxes | ||||||||||
The Company recognizes deferred tax assets and liabilities for its domestic and non-U.S. operations, for operating loss and other credit carry forwards and the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. This assessment requires judgment as to the likelihood and amounts of future taxable income by tax jurisdiction. | ||||||||||
Cash and Cash Equivalents | ||||||||||
The Company classifies investments as cash equivalents if they are readily convertible to cash and have original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of highly liquid investments in government and government agency securities and money market funds issued or managed by financial institutions in the U.S., Europe and Latin America and commercial paper depending on liquidity requirements. As of December 31, 2014, 2013 and 2012, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity. | ||||||||||
Restricted Cash and Securities | ||||||||||
Restricted cash and securities consists primarily of cash and investments that serve to collateralize outstanding letters of credit and certain performance and operating obligations of the Company. Restricted cash and securities are recorded as current or non-current assets in the Consolidated Balance Sheets depending on the duration of the restriction and the purpose for which the restriction exists. Restricted cash and securities are stated at cost which approximates fair value as of December 31, 2014 and 2013. | ||||||||||
Allowance for Doubtful Accounts | ||||||||||
Trade accounts receivable are recorded at the invoiced amount and can bear interest. The Company establishes an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. The Company determines the allowance for doubtful accounts based on the aging of its accounts receivable balances, the credit quality of its customers and an analysis of its historical experience of bad debt write-offs. Accounts receivable balances are written off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. The Company recognized bad debt expense, net of recoveries, of approximately $22 million in 2014, $17 million in 2013 and $15 million in 2012. | ||||||||||
Property, Plant and Equipment | ||||||||||
Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives: | ||||||||||
Facility and Leasehold Improvements | 15 | - | 40 | years | ||||||
Network Infrastructure (including fiber and conduit) | 25 | - | 50 | years | ||||||
Operating Equipment | 5 | - | 15 | years | ||||||
Furniture, Fixtures, Office Equipment and Other | 3 | - | 7 | years | ||||||
The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. 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 different than the remaining previously estimated useful lives. The Company completed an 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 year ended December 31, 2014 (in millions, except per share amounts): | ||||||||||
Net Income | $ | 90 | ||||||||
Basic Net Income per Share | $ | 0.35 | ||||||||
Diluted Net Income per Share | $ | 0.35 | ||||||||
Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured. | ||||||||||
The Company capitalizes costs directly associated with expansions and improvements of the Company's communications network and customer installations, including employee-related costs, and generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of 3 to 7 years. | ||||||||||
In addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll-related expenses for employees directly associated with business support systems projects are capitalized. The total cost of the business support system is amortized over an estimated useful life of 3 years. | ||||||||||
Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $187 million, $164 million and $146 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
Asset Retirement Obligations | ||||||||||
The Company recognizes a liability for the estimated fair value of legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset in the period incurred. The fair value of the obligation is also capitalized as property, plant and equipment and then amortized over the estimated remaining useful life of the associated asset. Increases to the asset retirement obligation liability due to the passage of time are recognized as accretion expense and included within network related expenses. Changes in the liability due to revisions to the amount or timing of future cash flows are recognized by increasing or decreasing the liability with the offset adjusting the carrying amount of the related long-lived asset. To the extent that the downward revisions exceed the carrying amount of the related long-lived asset initially recorded when the asset retirement obligation liability was established, the Company records the remaining adjustment as a reduction to depreciation expense, to the extent of historical depreciation of the related long-lived asset, and then to network related expenses. | ||||||||||
Goodwill and Acquired Indefinite-Lived Intangible Assets | ||||||||||
Accounting guidance prohibits the amortization of goodwill and purchased intangible assets with indefinite useful lives. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually as of October 1st and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. | ||||||||||
The Company's goodwill impairment review process considers the fair value of each reporting unit relative to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit's goodwill must be determined and compared to the carrying value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the two step goodwill impairment evaluation. | ||||||||||
At the time of each impairment assessment date in 2014, 2013 and 2012, the Company's reporting units consisted of its three regional operating units in: North America; Europe, the Middle East and Africa ("EMEA"); and Latin America. | ||||||||||
The Company's indefinite-lived intangible assets impairment review process compares the estimated fair value of the indefinite-lived intangible assets to their respective carrying values. If the fair value of the indefinite-lived intangible assets exceeds their carrying values, then the indefinite-lived intangible assets are not impaired. If the carrying value of the indefinite-lived intangible assets exceeds their fair value, then an impairment loss equal to the difference will be recorded. In accordance with applicable accounting guidance, an entity may assess qualitative factors to determine whether it is more likely than not that the fair value exceeds the carrying value prior to performing the two step evaluation. If it is determined that it is unlikely the carrying value exceeds the fair value, then the entity is not required to complete the two step indefinite-lived intangible assets impairment evaluation. | ||||||||||
Long-Lived Assets Including Finite-Lived Purchased Intangible Assets | ||||||||||
The Company amortizes acquired intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 4 to 12 years. | ||||||||||
The Company evaluates long-lived assets, such as property, plant and equipment and acquired intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the asset groups are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the assets plus net proceeds expected from disposition of the assets, if any, are less than the carrying value of the assets. If an asset is deemed to be impaired, the amount of the impairment loss is the excess of the asset's carrying value over its estimated fair value. | ||||||||||
The Company conducted a long-lived asset impairment analysis in 2014, 2013 and 2012 and in each case concluded that its long-lived assets, including finite-lived acquired intangible assets, were not impaired. | ||||||||||
Concentration of Credit Risk | ||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, accounts receivable, restricted cash and securities and derivatives. The Company maintains its cash equivalents, restricted cash and securities and derivatives with various financial institutions. These financial institutions are primarily located in the United States, Europe and Latin America and the Company's policy is to limit exposure with any one institution. As part of its cash and risk management processes, the Company performs periodic evaluations of the relative credit standing of the financial institutions. The Company also has established guidelines relative to financial instrument credit ratings, diversification and maturities that seek to maintain safety and liquidity. The Company's investment strategy generally results in lower yields on investments but reduces the risk to principal in the short term prior to these funds being used in the Company's business. Notwithstanding the devaluation of the Venezuelan bolivar, the Company has not experienced any material losses on financial instruments held at financial institutions. | ||||||||||
The Company provides communications services to a wide range of wholesale and enterprise customers, ranging from well capitalized national carriers to small early stage companies primarily in the United States, Europe, and Latin America. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising Level 3's customer base and their dispersion across many different industries and geographical regions. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers, although letters of credit and deposits are required in certain limited circumstances. The Company has from time to time entered into agreements with value-added resellers and other channel partners to reach consumer and enterprise markets for voice services. The Company has policies and procedures in place | ||||||||||
to evaluate the financial condition of these resellers prior to initiating service to the final customer. The Company maintains an allowance for doubtful accounts based upon the expected collectability of accounts receivable. Due to the Company's credit evaluation and collection process, bad debt expenses have not been significant; however, the Company is not able to predict changes in the financial stability of its customers. Any material change in the financial status of any one or a particular group of customers may cause the Company to adjust its estimate of the recoverability of receivables and could have a material adverse effect on the Company's results of operations. Fair values of accounts receivable approximate carrying amount due to the short period of time to collection. | ||||||||||
A relatively small number of customers account for a significant percentage of the Company's revenue. The Company's top ten customers accounted for approximately 17%, 17% and 17% of Level 3's revenue for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
Recently Issued Accounting Pronouncements | ||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("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. | ||||||||||
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 Statements of Operations. Beginning with the third quarter 2014, these network related expenses have been reported under a separate line item, “Network Related Expenses,” in the Company’s Consolidated Statements 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 Statements 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 Income (Loss) or Income (Loss) per Share in the Consolidated Statements of Operations, or any items reported in the Consolidated Balance Sheets, | ||||||||||
Consolidated Statements of Comprehensive Income (Loss), Cash Flows or Changes in Stockholders’ Equity. | ||||||||||
The following table reflects 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 years ended December 31, 2013 and 2012 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) | |||||||
Year Ended December 31, 2013 | ||||||||||
Cost of Revenue | $ | 2,471 | $ | (2,471 | ) | $ | — | |||
Network Access Costs | — | 2,471 | 2,471 | |||||||
Network Related Expenses | — | 1,214 | 1,214 | |||||||
Selling, General and Administrative Expenses | 2,376 | (1,214 | ) | 1,162 | ||||||
Total Costs and Expenses | 5,647 | — | 5,647 | |||||||
Year Ended December 31, 2012 | ||||||||||
Cost of Revenue | 2,602 | (2,602 | ) | — | ||||||
Network Access Costs | — | 2,602 | 2,602 | |||||||
Network Related Expenses | — | 1,249 | 1,249 | |||||||
Selling, General and Administrative Expenses | 2,450 | (1,249 | ) | 1,201 | ||||||
Total Costs and Expenses | 5,801 | — | 5,801 | |||||||
(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 years ended December 31, 2013 and 2012. | ||||||||||
As a result of the above, the Company also revised the Condensed Consolidating Statements of Operations for the years ended December 31, 2013 and 2012 in Note 17 Condensed Consolidating Financial Information, and the presentation for all periods within 2013 and 2012 included in Note 18 Unaudited Quarterly Financial Data. |
Events_Associated_with_the_Mer
Events Associated with the Merger of tw telecom inc. | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Events Associated with the Amalgamation of Global Crossing | Events Associated with the Merger of tw telecom inc. | |||||||
On October 31, 2014, the Company completed its acquisition of tw telecom and tw telecom became an indirect, 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 of tw telecom were canceled and the holders received the merger consideration, net of aggregate per share exercise price; (3) each restricted stock unit award of tw telecom was immediately vested and canceled and the holders received the merger consideration; and (4) each restricted stock unit of tw telecom was immediately vested and canceled and holders received the merger consideration. | ||||||||
In connection with the closing of the Merger, Level 3 Financing, Inc., a wholly owned subsidiary, 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 the Tranche B 2022 Term Loan 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 11 — Long-Term Debt for additional information). In addition, the net proceeds from the issuance of $1 billion of 5.375% Senior Notes due 2022 raised in August 2014 (see Note 11 — Long-Term Debt) 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 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 including premiums of $154 million. | ||||||||
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 $2.1 billion of debt of tw telecom called for redemption and discharged or repaid, the aggregate consideration for acquisition | ||||||||
accounting, including assumed capital leases of $152 million, 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 except that certain deductible goodwill of tw telecom will continue to be deductible following the Merger. | ||||||||
The combined results of operations of Level 3 and tw telecom are included in the Company's consolidated results of operations beginning in November 2014. Included in the combined financial results is $285 million in revenue attributable to tw telecom since the completion of the Merger. The assets acquired and liabilities assumed of tw telecom were recognized at their acquisition date fair value. 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. The following is a preliminary allocation of purchase price based on information currently available. The final identification of all the intangible assets acquired and determination of the purchase price allocation may be significantly different from the preliminary allocation reflected below. | ||||||||
Initial Purchase Price Allocation | ||||||||
(dollars in millions) | ||||||||
Assets: | ||||||||
Cash, Cash Equivalents and Restricted Cash | $ | 309 | ||||||
Property, Plant and Equipment | 1,555 | |||||||
Goodwill | 5,124 | |||||||
Identifiable Intangible Assets | 1,323 | |||||||
Other Assets | 138 | |||||||
Total Assets | 8,449 | |||||||
Liabilities: | ||||||||
Long-Term Debt | (2,099 | ) | ||||||
Deferred Revenue | (60 | ) | ||||||
Other Liabilities | (279 | ) | ||||||
Total Liabilities | (2,438 | ) | ||||||
Total Consideration to be Allocated | $ | 6,011 | ||||||
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). | ||||||||
Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Total Revenue | $ | 8,123 | $ | 7,825 | ||||
Net Income (Loss) | $ | 141 | $ | (165 | ) | |||
Net Income (Loss) per Share- Basic | $ | 0.42 | $ | (0.52 | ) | |||
Net Income (Loss) per Share - Diluted | $ | 0.42 | $ | (0.52 | ) | |||
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 unaudited 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 $81 million through December 31, 2014. | ||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Loss Per Share | (Loss) Per Share |
The Company computes basic net earnings (loss) 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 net earnings (loss) per share is computed by dividing 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. No such items were included in the computation of diluted earnings per share in the years ended 2013 and 2012 because the Company incurred a loss from continuing operations in each of these periods and the effect of inclusion would have been anti-dilutive. | |
The effect of approximately 17 million, 18 million and 35 million shares issuable pursuant to the various series of convertible notes outstanding at December 31, 2014, 2013 and 2012, respectively, have not been included in the computation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive to the computation. In addition, the effect of the approximately 6 million and 7 million stock options, outperform stock appreciation rights ("OSOs"), restricted stock units ("RSUs") and warrants outstanding at December 31, 2013 and 2012, respectively, have not been included in the computation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive to the computation. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
The components of the Company's property, plant and equipment as of December 31, 2014 and 2013 are as follows (dollars in millions): | |||||||||||||
Cost | Accumulated | Net | |||||||||||
Depreciation | |||||||||||||
December 31, 2014 | |||||||||||||
Land | $ | 192 | $ | — | $ | 192 | |||||||
Land Improvements | 73 | (50 | ) | 23 | |||||||||
Facility and Leasehold Improvements | 2,489 | (1,265 | ) | 1,224 | |||||||||
Network Infrastructure | 8,941 | (3,447 | ) | 5,494 | |||||||||
Operating Equipment | 7,217 | (4,669 | ) | 2,548 | |||||||||
Furniture, Fixtures and Office Equipment | 255 | (177 | ) | 78 | |||||||||
Other | 29 | (21 | ) | 8 | |||||||||
Construction-in-Progress | 293 | — | 293 | ||||||||||
$ | 19,489 | $ | (9,629 | ) | $ | 9,860 | |||||||
December 31, 2013 | |||||||||||||
Land | $ | 193 | $ | — | $ | 193 | |||||||
Land Improvements | 72 | (47 | ) | 25 | |||||||||
Facility and Leasehold Improvements | 2,207 | (1,193 | ) | 1,014 | |||||||||
Network Infrastructure | 8,505 | (3,279 | ) | 5,226 | |||||||||
Operating Equipment | 6,057 | (4,381 | ) | 1,676 | |||||||||
Furniture, Fixtures and Office Equipment | 196 | (168 | ) | 28 | |||||||||
Other | 22 | (21 | ) | 1 | |||||||||
Construction-in-Progress | 77 | — | 77 | ||||||||||
$ | 17,329 | $ | (9,089 | ) | $ | 8,240 | |||||||
Depreciation expense was $713 million in 2014, $727 million in 2013 and $659 million in 2012 |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||
Asset Retirement Obligations | Asset Retirement Obligations | ||||||||
The Company's asset retirement obligations consist of legal requirements to remove certain of its network infrastructure at the expiration of the underlying right-of-way ("ROW") term and restoration requirements for leased facilities. The Company recognizes its estimate of the fair value of its asset retirement obligations in the period incurred in other long-term liabilities. The fair value of the asset retirement obligation is also capitalized as property, plant and equipment and then amortized over the estimated remaining useful life of the associated asset. | |||||||||
As a result of a strategic review of the Company's real estate portfolio in the fourth quarter of 2012, the Company completed an updated analysis and revised its estimated future cash flows of its asset retirement obligations. The analysis required estimating the probability or likelihood that the Company will be required to remove certain of its network infrastructure and restore leased properties, and the timing and amount of eventual costs. The analysis resulted in the downward revision of the Company's asset retirement obligation liability. This change in the estimated cash flows resulted in a non-cash gain of $49 million recorded within network related expenses, and depreciation expense, or $0.23 basic and diluted net loss per share. | |||||||||
In conjunction with its review of the ROW asset retirement obligation, the Company identified an error in its assumptions used to estimate its ROW asset retirement obligation related to the extension of the useful lives of its conduit assets effective October 1, 2011 (See Note 1 - Organization and Summary of Significant Accounting Policies). The Company recorded a non-cash benefit of approximately $21 million within network related expenses, or $0.10 basic and diluted net loss per share during the fourth quarter of 2012 for the change in the ROW term used to estimate its ROW asset retirement obligation. The reduction in the asset retirement obligations liability includes the change in estimate of the ROW term that arose in prior periods, which did not materially affect any of the Company's previously reported results of operations or financial condition, or the current period results of operations or financial condition. | |||||||||
In 2012, as a result of the revisions in estimated amount and timing of cash flows for asset retirement obligations, the Company reduced its asset retirement obligations liability by $73 million with an offsetting reduction to property, plant and equipment of $24 million, network related expenses of $47 million and depreciation and amortization of $2 million. The Company first reduced property, plant and equipment to the extent of the carrying amount of the related asset initially recorded when the asset retirement obligations were established. The amount of the remaining reduction to the asset retirement obligations were recorded as a reduction to depreciation expense to the extent of historical deprecation of the related asset and then to selling, general and administrative expenses. | |||||||||
The following table provides asset retirement obligation activity for the years ended December 31, 2014 and 2013 (dollars in millions): | |||||||||
2014 | 2013 | ||||||||
Asset retirement obligation at January 1 | $ | 56 | $ | 55 | |||||
Accretion expense | 8 | 7 | |||||||
Liabilities assumed in tw telecom acquisition | 22 | — | |||||||
Liabilities settled | (7 | ) | (6 | ) | |||||
Revision in estimated cash flows | 7 | — | |||||||
Effect of foreign currency rate change | (1 | ) | — | ||||||
Asset retirement obligation at December 31 | $ | 85 | $ | 56 | |||||
Goodwill
Goodwill | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill Disclosure [Abstract] | ||||
Goodwill | Goodwill | |||
The changes in the carrying amount of goodwill during the years ended December 31, 2014 and 2013 are as follows (dollars in millions): | ||||
Total | ||||
Balance as of January 1, 2013 | $ | 2,565 | ||
Goodwill adjustments | 12 | |||
Balance as of December 31, 2013 | 2,577 | |||
Goodwill adjustments | (12 | ) | ||
Goodwill acquired in tw telecom acquisition | 5,124 | |||
Balance as of December 31, 2014 | $ | 7,689 | ||
The Company conducted its annual goodwill impairment analysis as of October 1, 2014 and 2013. As a result of the Company's annual assessment, Level 3 concluded that its goodwill was not impaired in 2014 or 2013. |
Acquired_Intangible_Assets
Acquired Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Acquired Intangible Assets Disclosure [Abstract] | ||||||||||||
Acquired Intangible Assets | Acquired Intangible Assets | |||||||||||
Identifiable acquisition-related intangible assets as of December 31, 2014 and 2013 were as follows (dollars in millions): | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | |||||||||||
Amount | ||||||||||||
December 31, 2014 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 1,977 | $ | (741 | ) | $ | 1,236 | |||||
Trademarks | 115 | (47 | ) | 68 | ||||||||
Patents and Developed Technology | 228 | (133 | ) | 95 | ||||||||
2,320 | (921 | ) | 1,399 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Trade Name | 15 | — | 15 | |||||||||
$ | 2,335 | $ | (921 | ) | $ | 1,414 | ||||||
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: | ||||||||||||
Trade Name | 32 | — | 32 | |||||||||
$ | 1,031 | $ | (826 | ) | $ | 205 | ||||||
During the fourth quarter of 2014 and 2013, the Company conducted its long-lived assets and indefinite-lived intangible assets impairment analysis and for 2014 concluded that there was impairment of $17 million in its trade name indefinite-lived intangible asset in 2014 and there was no impairment in 2013. | ||||||||||||
Acquired finite-lived intangible assets amortization expense was $95 million in 2014, $73 million in 2013 and $90 million in 2012. | ||||||||||||
At December 31, 2014, the weighted average remaining useful lives of the Company's acquired finite-lived intangible assets was 6.8 years for customer contracts and relationships, 4.2 years for trademarks and 4.0 years for patents and developed technology. | ||||||||||||
As of December 31, 2014, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years and thereafter is as follows (dollars in millions): | ||||||||||||
2015 | $ | 242 | ||||||||||
2016 | 223 | |||||||||||
2017 | 208 | |||||||||||
2018 | 205 | |||||||||||
2019 | 188 | |||||||||||
Thereafter | 333 | |||||||||||
$ | 1,399 | |||||||||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges |
Employee Separations | |
Changing economic and business conditions as well as organizational structure optimization efforts have caused the Company to initiate from time to time various workforce reductions resulting in involuntary employee terminations. The Company also has initiated workforce reductions resulting from the integration of previously acquired companies. | |
During 2014, as part of the Merger and organizational effectiveness, the Company initiated workforce reductions. During 2013 and 2012, the Company initiated workforce reductions primarily focused on labor cost savings and organizational effectiveness. Restructuring charges totaled $45 million, $47 million and $34 million in 2014, 2013 and 2012, respectively, of which $11 million, $12 million and $8 million in 2014, 2013 and 2012, respectively, were recorded in Network Related Expenses and $34 million, $35 million and $26 million in 2014, 2013 and 2012, respectively, were recorded in Selling, General and Administrative Expenses. | |
As of December 31, 2014 and 2013, the Company had $37 million and $8 million, respectively, of employee termination liabilities. | |
Facility Closings | |
The Company also has accrued contract termination costs of $20 million and $31 million as of December 31, 2014 and 2013, respectively, for facility lease costs that the Company continues to incur without economic benefit. Accrued contract termination costs are recorded in other liabilities (current and non-current) in the Consolidated Balance Sheets. The Company expects to pay the majority of these costs through 2025. The Company recognized a charge of less than $1 million, a charge of approximately $7 million and a benefit of $2 million in 2014, 2013 and 2012, respectively, as a result of facility lease costs. The Company records charges for contract termination costs within Selling, General and Administrative Expenses in the Consolidated Statements of Operations. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013. | |||||||||||||||||||||||||
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 nonperformance. | |||||||||||||||||||||||||
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 as of the end of the reporting period. There were no transfers within the fair value hierarchy during each of the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
The table below presents the fair values for the Company’s long-term debt as well as the input levels used to determine these fair values as of December 31, 2014 and 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) | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Liabilities Not Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Long-term Debt, including the current portion: | |||||||||||||||||||||||||
Term Loans | $ | 4,590 | $ | 2,604 | $ | 4,593 | $ | 2,633 | $ | — | $ | — | |||||||||||||
Senior Notes | 6,203 | 5,198 | 6,481 | 5,673 | — | — | |||||||||||||||||||
Convertible Notes | 333 | 474 | — | — | 868 | 647 | |||||||||||||||||||
Capital Leases and Other | 207 | 86 | — | — | 207 | 86 | |||||||||||||||||||
Total Long-term Debt, including the current portion: | $ | 11,333 | $ | 8,362 | $ | 11,074 | $ | 8,306 | $ | 1,075 | $ | 733 | |||||||||||||
The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||
Term Loans | |||||||||||||||||||||||||
The fair value of the Term Loans referenced above was approximately $4.6 billion and $2.6 billion at December 31, 2014 and 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 $6.5 billion and $5.7 billion at December 31, 2014 and 2013, respectively, based on quoted prices for identical terms and maturities. Each series of notes is actively traded. | |||||||||||||||||||||||||
Convertible Notes | |||||||||||||||||||||||||
The fair value of the Company’s Convertible Notes that are not actively traded, which includes the 7% Convertible Senior Notes due 2015 and the 7% Convertible Senior Notes due 2015, Series B, was approximately $868 million and $647 million at December 31, 2014 and 2013, respectively. In the fourth quarter of 2014, the Company issued approximately 5 million shares of common stock when holders of approximately $142 million in the aggregate of its 7% Convertible Senior Notes due 2015 and 7% convertible Senior Notes due 2015, Series B converted these notes. | |||||||||||||||||||||||||
The estimated fair value of the Convertible Notes that are not actively traded is based on a Black-Scholes valuation model and an income approach using discounted cash flows. The most significant inputs affecting the valuation are the pricing quotes provided by market participants that incorporate spreads to the Treasury curve, security coupon (7%), 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. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||
The Company has floating rate long-term debt (see Note 11 - Long-Term Debt). This type of debt exposes the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense also generally decreases. The Company has used interest rate swaps, in an attempt to manage its exposure to fluctuations in interest rate movements. The Company’s primary objective in managing interest rate risk was to decrease the volatility of its earnings and cash flows affected by changes in the underlying rates. The Company does not use derivative financial instruments for speculative purposes. | |||||||||||||||
In March 2007, Level 3 Financing, Inc. entered into two interest rate swap agreements to hedge the interest payments on $1 billion principal amount of floating rate debt. The Company had designated these interest rate swap agreements as cash flow hedges. The hedge designation was terminated in 2012 in connection with certain refinancing activities, and the instruments were settled upon maturity in 2014. Prior to the redesignation of the hedging relationship in 2012, the change in the fair value of the interest rate swap agreements was reflected in Accumulated Other Comprehensive Income (Loss) ("AOCI") and was subsequently reclassified into earnings through an interest expense yield adjustment, as interest expense on the hedged debt obligation was incurred. | |||||||||||||||
Upon redesignation, the Company recognized a non-cash loss on these agreements of approximately $60 million (excluding accrued interest) in the third quarter of 2012, which represented the cumulative loss recorded in AOCI at the date the instruments ceased to qualify as hedges (see Note 11 - Long-Term Debt). After August 6, 2012, the Company recorded the change in the fair value of the swaps in Other, net in its Consolidated Statement of Operations until maturity of the swaps in early 2014. The Company recognized a loss of zero, $2 million and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets (dollars in millions): | |||||||||||||||
Liability Derivatives | |||||||||||||||
31-Dec-13 | |||||||||||||||
Derivatives not designated as | Balance Sheet | Fair | |||||||||||||
hedging instruments | Location | Value | |||||||||||||
Interest rate swap agreements | Other current liabilities | $ | 12 | ||||||||||||
The amount of net gains recognized in AOCI, including reclassifications of unrealized losses, consists of the following (dollars in millions): | |||||||||||||||
Year Ended December 31, | |||||||||||||||
Derivatives designated as hedging instruments | 2013 | 2012 | |||||||||||||
Cash flow hedging contracts | $ | — | $ | 90 | |||||||||||
The amount of losses reclassified from AOCI to earnings (effective portions) consists of the following (dollars in millions): | |||||||||||||||
Year Ended December 31, | |||||||||||||||
Derivatives designated as hedging instruments | Statement of Operations Location | 2013 | 2012 | ||||||||||||
Cash flow hedging contracts | Interest Expense | $ | — | $ | (26 | ) | |||||||||
The effect of the Company’s derivatives not designated as hedging instruments on net loss is as follows (dollars in millions): | |||||||||||||||
Year Ended December 31, | |||||||||||||||
Derivatives not designated as hedging instruments | Statement of Operations Location | 2014 | 2013 | 2012 | |||||||||||
Interest rate swaps | Other Expense - Other, net | $ | — | $ | (2 | ) | $ | (64 | ) | ||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Long-Term Debt | ||||||||
As of December 31, 2014 and December 31, 2013, long-term debt was as follows: | |||||||||
(dollars in millions) | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Senior Secured Term Loan* | $ | 4,611 | $ | 2,611 | |||||
Floating Rate Senior Notes due 2018 (3.826% as of December 31, 2014) | 300 | 300 | |||||||
11.875% Senior Notes due 2019 | — | 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 | — | |||||||
5.75% Senior Notes due 2022 | 600 | — | |||||||
7% Convertible Senior Notes due 2015 | 58 | 200 | |||||||
7% Convertible Senior Notes due 2015 Series B | 275 | 275 | |||||||
Capital Leases | 207 | 73 | |||||||
Other | — | 13 | |||||||
Total Debt Obligations | 11,366 | 8,392 | |||||||
Unamortized Discount: | |||||||||
Discount on Senior Secured Term Loan | (21 | ) | (7 | ) | |||||
Discount on 11.875% Senior Notes due 2019 | — | (8 | ) | ||||||
Discount on 9.375% Senior Notes due 2019 | (6 | ) | (7 | ) | |||||
Discount on 8.125% Senior Notes due 2019 | (6 | ) | (7 | ) | |||||
Discount on 7% Convertible Senior Notes due 2015 | — | (1 | ) | ||||||
Total Unamortized Discount | (33 | ) | (30 | ) | |||||
Carrying Value of Debt | 11,333 | 8,362 | |||||||
Less current portion | (349 | ) | (31 | ) | |||||
Long-term Debt, less current portion | $ | 10,984 | $ | 8,331 | |||||
*The $2 billion Tranche B Term Loan due 2022 had an interest rate of 4.5% as of December 31, 2014. 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 December 31, 2014. | |||||||||
Senior Secured Term Loans | |||||||||
On March 13, 2007, Level 3 Communications, as guarantor, Level 3 Financing, as borrower, Merrill Lynch Capital Corporation, as administrative agent and collateral agent, and certain other agents and certain lenders entered into a Credit Agreement, pursuant to which the lenders extended a $1.4 billion senior secured term loan to Level 3 Financing. The $1.4 billion senior secured term loan (the "Tranche A Term Loan") had an interest rate of LIBOR plus an applicable margin of 2.25% per annum. In addition, during the second quarter of 2009, Level 3 Financing amended and restated its existing senior secured Credit Agreement to increase the borrowings through the creation of a $280 million Tranche B Term Loan (the "Tranche B Term Loan") and had an interest rate of LIBOR plus 8.50% per annum, with LIBOR set at a minimum of 3.00%. The Tranche A Term Loan and Tranche B Term Loan, which were to mature on March 13, 2014, were prepaid in August 2012 and November 2011, respectively. The $1.4 billion Tranche A Term Loan had an effective interest rate of 2.65% as of December 31, 2011, excluding the effect of the $1 billion notional amount interest rate swaps. | |||||||||
The Company used a portion of the original net proceeds after transaction costs to repay Level 3 Financing's $730 million Senior Secured Term Loan due 2011 under that certain Credit Agreement dated June 27, 2006. In addition, the Company used a portion of the net proceeds to fund the purchase of certain of its existing debt securities. | |||||||||
On October 4, 2011, in connection with the closing of the acquisition of Global Crossing Limited ("Global Crossing") (the "Amalgamation"), Level 3 Financing amended its existing Credit Agreement to incur an additional $650 million of borrowings through an additional tranche. The Company borrowed the Tranche B-II Term Loan from investors at a price of 99% of its principal amount. Debt issuance discount of approximately $7 million was reflected as a reduction in long-term debt. The Tranche B-II Term Loan accrued interest at 4.25% plus LIBOR, with a minimum LIBOR of 1.5%, with interest payments due quarterly. The Tranche B-II Term Loan, which was to mature on September 1, 2018, was prepaid in October 2012. The net proceeds from the Tranche B-II Term Loan were used to refinance certain existing indebtedness of Global Crossing Limited in connection with the consummation of the Amalgamation and for general corporate purposes. | |||||||||
Additionally, on November 10, 2011, Level 3 Financing amended its existing Credit Agreement to incur an additional $550 million of borrowings through an additional tranche. The Company borrowed the Tranche B-III Term Loan from investors at a price of 95% of its principal amount. Debt issuance discount of approximately $28 million was reflected as a reduction in long-term debt. The Tranche B-III Term Loan accrued interest at 4.25% plus LIBOR, with a minimum LIBOR of 1.5%, with interest payments due quarterly. The Tranche B-III Term Loan which was to mature on September 1, 2018, was prepaid in October 2012. The net proceeds from the Tranche B-III Term Loan were used along with cash on hand to prepay the $280 million Tranche B Term Loan that was outstanding under the existing senior secured credit facility and the $274 million aggregate principal amount of Level 3 Communications' 3.5% Convertible Senior Notes due 2012. | |||||||||
On August 6, 2012, Level 3 Financing refinanced its existing $1.4 billion Tranche A Term Loan under its existing senior secured credit facility through the creation of new term loans in the aggregate principal amount of $1.415 billion and cash on hand. The New Term Loans were borrowed pursuant to an amended and restated Credit Agreement. The New Term Loans consist of: (a) $600 million senior secured term loan (the "Tranche B 2016 Term Loan") due February 1, 2016, and (b) $815 million senior secured term loan (the "Tranche B 2019 Term Loan") due August 1, 2019. Both tranches were prepaid in August 2013. The Tranche B 2016 Term Loan required repayment of 0.25% of the aggregate principal amount on the last day of each March, June, September and December, beginning with December 31, 2012 and ending with such last day to occur prior to maturity. The interest rates on the loans were LIBOR plus 3.25% for the Tranche B 2016 Term Loan and LIBOR plus 3.75% for the Tranche B 2019 Term Loan, with LIBOR set at a minimum of 1.5% on both loans. The Tranche B 2016 Term Loan and the Tranche B 2019 Term Loan were priced at 99.5% and 99.0% of par, respectively. Debt issuance discounts of approximately $3 million and $8 million were reflected as a reduction in long-term debt. The Company used the net proceeds from the New Term Loans, along with cash on hand, to prepay Level 3 Financing's $1.4 billion Tranche A Term Loan under the existing Credit Agreement that was to mature in March 2014 and used remaining net proceeds to repay $15 million in principal amount plus premium for existing vendor financing obligations. Debt issuance costs for the Tranche B 2016 Term Loan and the Tranche B 2019 Term Loan of approximately $9 million and $12 million, respectively, were capitalized and amortized over the respective terms of those term loans as interest expense using the effective interest method until prepayment. The Company recognized a loss on extinguishment of debt of $9 million as a result of refinancing the Tranche A Term Loan. In connection with the refinancing of the Tranche A Term Loan, the Company recognized a $60 million non-cash loss on two interest rate swap agreements that had previously hedged changes in the interest rate on $1 billion notional amount of floating rate debt. | |||||||||
On October 4, 2012, Level 3 Financing refinanced its existing $650 million Tranche B-II Term Loan and $550 million Tranche B-III Term Loan under its existing senior secured credit facility through the creation of a new term loan in the aggregate principal amount of $1.2 billion. The Tranche B-II 2019 Term Loan was borrowed pursuant to an amended and restated Credit Agreement. The Tranche B-II 2019 Term Loan consisted of a $1.2 billion senior secured term loan that was to mature on August 1, 2019 and was prepaid in October 2013. The interest rate on the loan was LIBOR plus 3.25%, with LIBOR set at a minimum of 1.5%. The Tranche B-II 2019 Term Loan was priced at par. The Company used the net proceeds from the Tranche B-II 2019 Term Loan, along with cash on hand, to prepay Level 3 Financing's $650 million Tranche B-II Term Loan and $550 million Tranche B-III Term Loan under the existing Credit Agreement which were to mature in September 2018. Debt issuance costs of approximately $13 million were capitalized and amortized over the term of the Tranche B-II 2019 Term Loan as interest expense using the effective interest method until prepayment. The Company recognized a loss on extinguishment of debt of $50 million as a result of refinancing the Tranche B-II and Tranche B-III Term Loans. | |||||||||
On August 12, 2013, Level 3 Financing refinanced its existing $815 million Tranche B 2019 Term Loan under its existing senior credit facility through the creation of a new term loan in the aggregate principal amount of $815 million (the "Tranche B-III 2019 Term Loan"). The Tranche B-III 2019 Term Loan was borrowed pursuant to an amended and restated Credit Agreement. The Tranche B-III 2019 Term Loan has an interest rate of LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on August 1, 2019. The Tranche B-III 2019 Term Loan was priced to lenders at par. Debt issuance costs related to the Tranche B 2019 Term Loan of approximately $10 million were allocated to the Tranche B-III 2019 Term Loan and continue to be amortized as interest expense using the new effective interest rate over its new term. The Company expensed debt issuance costs of approximately $9 million as of result of this transaction. | |||||||||
Additionally on August 16, 2013, Level 3 Financing refinanced its existing $595.5 million Tranche B 2016 Term Loan under its existing senior credit facility through the creation of a new term loan in the aggregate principal amount of $595.5 million (the "Tranche B 2020 Term Loan"). The Tranche B 2020 Term Loan was borrowed pursuant to an amended and restated Credit Agreement. The Tranche B 2020 Term Loan has an interest rate of LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on January 15, 2020. The Tranche B 2020 Term Loan was priced to lenders at par. Debt issuance costs for the Tranche B 2020 Term Loan of approximately $7 million were capitalized and are being amortized as interest expense using the effective interest method over its term. The Company recognized a loss on extinguishment of debt of $8 million as of result of this transaction. | |||||||||
On October 4, 2013, Level 3 Financing refinanced its existing $1.2 billion Tranche B-II 2019 Term Loan under its existing senior credit facility by increasing the borrowings under the Tranche B 2020 Term Loan by an aggregate principal amount of $1.2 billion. The Tranche B 2020 Term Loan new aggregate principal amount is $1.796 billion. The $1.796 billion Tranche B 2020 Term Loan will continue to bear interest at LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on January 15, 2020. The additional portion of the Tranche B 2020 Term Loan was priced to lenders at par, with the payment to the lenders of an upfront 0.25% fee at closing. As a result of this transaction, the Company recognized a loss on the refinancing of approximately $10 million, additional debt discount costs of $3 million that are being amortized as interest expense using the effective interest method over its term and debt issuance costs related to the Tranche B-II 2019 Term Loan of approximately $11 million were assigned to the Tranche B 2020 Term Loan and continue to be amortized as interest expense using the new effective interest rate over its new term. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $8 million and $17 million for the Tranche B-III 2019 and Tranche B 2020 Term Loans, respectively, at December 31, 2014. | |||||||||
On October 31, 2014, Level 3 Financing entered into a ninth amendment agreement to the Existing Credit Agreement to incur $2 billion in aggregate borrowings under the Existing Credit Agreement through the creation of a new Tranche B 2022 Term Loan (the "Tranche B 2022 Term Loan"). The Tranche B 2022 Term Loan included an upfront payment to the lenders of 0.75% of par and will bear interest equal to LIBOR plus 3.50% with LIBOR set at a minimum of 1.00% percent. The Tranche B 2022 Term Loan will mature on January 31, 2022. Debt issuance costs of approximately $27 million were capitalized and are amortized over the term of the Tranche B 2022 Term Loan using the effective interest method. | |||||||||
As of December 31, 2014, the debt issuance discount for the Tranche B 2022 Term Loan remaining was $15 million. As a result of amortization, the capitalized debt issuance costs have been reduced to $26 million at December 31, 2014. | |||||||||
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 in the Merger 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. | |||||||||
Level 3 Financing has the option of electing one, two, three or six month LIBOR at the end of each interest period and may elect different options with respect to different portions of the Senior Secured Term Loan. Interest is payable in cash at the end of each LIBOR period elected in arrears, provided that in the case of a six month interest period, interim interest payments are required at the end of the first three months. | |||||||||
The Senior Secured Term Loan is secured by a pledge of the equity interests in certain U.S.-based subsidiaries of Level 3 Financing, Inc.; 65% of the equity interests in each of Level 3 Financing, Inc.'s Canadian subsidiary and its Bermudan subsidiary that indirectly owns Global Crossing Limited's non-U.S. subsidiaries; and liens on the assets of Level 3 Communications, Inc. and certain U.S.-based subsidiaries of Level 3 Financing, Inc. In addition, Level 3 Communications, Inc. and certain U.S.-based subsidiaries of Level 3 Financing, Inc. have provided full and unconditional guarantees of the obligations under the Senior Secured Term Loan. | |||||||||
The Senior Secured Term Loan includes certain negative covenants which restrict the ability of the Company, Level 3 Financing and any restricted subsidiary to engage in certain activities. The Senior Secured Term Loan also contains certain events of default. It does not require the Company or Level 3 Financing to maintain specific financial ratios or other financial metrics. | |||||||||
Floating Rate Senior Notes due 2018 | |||||||||
On November 26, 2013, Level 3 Financing completed the offering of $300 million aggregate principal amount of its Floating Rate Senior Notes due 2018 (the "2018 Floating Rate Notes"). Debt issuance costs of approximately $5 million were capitalized and are being amortized over the term of the 2018 Floating Rate Notes as interest expense using the effective interest method. The net proceeds from the offering, together with cash on hand, were used to redeem all of Level 3 Financing’s outstanding Floating Rate Senior Notes due 2015, including accrued interest and expenses. The Company recognized a loss on extinguishment of debt of $1 million as a result of this transaction. The 2018 Floating Rate Notes were priced at 100% of their principal amount and will mature on January 15, 2018. Interest on the notes is payable on May 15 and November 15 of each year, beginning on May 15, 2014. The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. | |||||||||
The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $3 million at December 31, 2014. | |||||||||
Prior to May 15, 2015, at the option of Level 3 Financing, the 2018 Floating Rate Notes will be subject to redemption, 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, at 100% of the principal amount of 2018 Floating Rate Notes so redeemed plus (i) the applicable make-whole premium set forth in the Indenture, as of the redemption date and (ii) accrued and unpaid interest thereon (if any) up to, but not including, the redemption date. The 2018 Floating Rate Notes will be redeemable at the option of Level 3 Financing, in whole or in part, on or after May 15, 2015, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as percentages of the principal amount), plus accrued and unpaid interest thereon (if any) up to, but not including, the redemption date, if redeemed during the periods set forth below: | |||||||||
Period | Redemption Price | ||||||||
May 15, 2015 - May 14, 2016 | 102 | % | |||||||
May 15, 2016 - November 14, 2016 | 101 | % | |||||||
November 15, 2016 and thereafter | 100 | % | |||||||
In addition, at any time or from time to time on or prior to May 15, 2015, Level 3 Financing may redeem up to 35% of the original aggregate principal amount of the 2018 Floating Rate Notes at a redemption price equal to 100% of the principal amount of the 2018 Floating Rate Notes so redeemed, plus a premium equal to the interest rate per annum on the 2018 Floating Rate Notes in effect on the date that notice of redemption is given, plus accrued and unpaid interest thereon (if any) up to, but not including the redemption date, with the net cash proceeds contributed to the capital of Level 3 Financing from one or more private placements of common stock 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 65% of the original aggregate principal amount of the 2018 Floating Rate Notes must remain outstanding immediately after giving effect to such redemption. Any such redemption is required to 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 2018 Floating Rate Notes was 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. | |||||||||
11.875% Senior Notes due 2019 | |||||||||
In January 2011, in two separate transactions, Level 3 Communications issued a total of $605 million aggregate principal amount of its 11.875% Senior Notes due 2019. The Company issued its 11.875% Senior Notes due 2019 to investors at a price of 98.173% of their principal amount. Debt issuance costs of approximately $8 million were capitalized and were amortized over the term of the 11.875% Senior Notes as interest expense using the effective interest method. The net proceeds from the issuance of the 11.875% Senior Notes were used to redeem the Company’s 5.25% Convertible Senior Notes due 2011 and exchange the 9% Convertible Senior Discount Notes due 2013 during the first quarter of 2011. Debt issuance discount of approximately $11 million was reflected as a reduction in long-term debt and amortized as interest expense over the term of the 11.875% Senior Notes using the effective interest method. The 11.875% Senior Notes were due to mature on February 1, 2019. | |||||||||
In December 2014, the Company issued $600 million aggregate principal amount of its 5.75% Senior Notes due 2022. The net proceeds from the offering of the notes, together with cash on hand, were used to redeem the $605 million aggregate principal amount outstanding of the Company's 11.875% Senior Notes due 2019. The company recognized a debt extinguishment loss of $53 million associated with this transaction during the fourth quarter 2014. | |||||||||
9.375% Senior Notes due 2019 | |||||||||
On March 4, 2011, Level 3 Financing issued $500 million aggregate principal amount of its 9.375% Senior Notes due 2019 at a price of 98.001% of their principal amount. Debt issuance discount of approximately $10 million was reflected as a reduction in long-term debt and is being amortized as interest expense over the term of the 9.375% Senior Notes using the effective interest method. Debt issuance costs of approximately $11 million were capitalized and are being amortized over the term of the 9.375% Senior Notes as interest expense using the effective interest method. The net proceeds from the offering, were used to redeem a portion of Level 3 Financing’s outstanding 9.25% Senior Notes due 2014 on April 4, 2011. The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. The 9.375% Senior Notes will mature on April 1, 2019. Interest on the Notes is payable on April 1 and October 1 of each year, beginning on October 1, 2011. | |||||||||
As of December 31, 2014, debt issuance discount remaining was $6 million. As a result of amortization, the capitalized debt issuance costs have been reduced to $7 million at December 31, 2014. | |||||||||
The 9.375% Senior Notes Due 2019 are subject to redemption at the option of Level 3 Financing in whole or in part, at any time or from time to time, prior to April 1, 2015, at 100% of the principal amount of 9.375% 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 on or after April 1, 2015 at the redemption prices (expressed as a percentage of principal amount) set forth below, plus accrued and unpaid interest thereon to the redemption date, if redeemed during the twelve months beginning April 1, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2015 | 104.688 | % | |||||||
2016 | 102.344 | % | |||||||
2017 | 100 | % | |||||||
The offering of the 9.375% Senior Notes was not originally registered under the Securities Act of 1933, as amended, and included a registration rights agreement. In July 2011, all of the originally placed notes were exchanged for a new issue of 9.375% Senior Notes due 2019 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
On January 29, 2015, Level 3 Financing issued $500 million aggregate principal amount of its 5.625% Senior Notes due 2023. The 5.625% Senior Notes were priced at par and mature February 1, 2023. The 5.625% Senior Notes will pay interest on June 15 and December 15 of each year beginning on June 15, 2015. | |||||||||
The net proceeds from the offering of the 5.625% Senior Notes, together with cash on hand, will be used to redeem all $500 million aggregate principal amount of Level 3 Financing, Inc.’s 9.375% Senior Notes due 2019. | |||||||||
8.125% Senior Notes due 2019 | |||||||||
On June 9, 2011, Level 3 Escrow, Inc., an indirect, wholly owned subsidiary of Level 3 Communications, issued $600 million in aggregate principal amount of its 8.125% Senior Notes due 2019. Level 3 Escrow, Inc. issued the 8.125% Senior Notes to investors at a price of 99.264% of their principal amount. Debt issuance discount of approximately $4 million was reflected as a reduction in long-term debt and was amortized as interest expense over the beginning initial term of the 8.125% Senior Notes using the effective interest method. The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. The 8.125% Senior Notes will mature on July 1, 2019. Interest on the notes accrues at 8.125% per year and is payable on January 1 and July 1, beginning on January 1, 2012. | |||||||||
On July 28, 2011, Level 3 Escrow, Inc. issued an additional $600 million in aggregate principal amount of its 8.125% Senior Notes due 2019 ("Series B") under the same indenture as the 8.125% Senior Notes issued on June 9, 2011, which are treated under that indenture as a single series of notes. The new 8.125% Senior Notes due 2019 were priced to investors at 98.545% of their principal amount, plus accrued interest from June 9, 2011 when the original notes were issued, and will mature on July 1, 2019. Debt issuance discount of approximately $9 million was reflected as a reduction in long-term debt and is being amortized as interest expense over the beginning initial term of the 8.125% Senior Notes using the effective interest method. | |||||||||
The gross proceeds from the offering of the 8.125% 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 Amalgamation and the assumption of the 8.125% Senior Notes by Level 3 Financing. In conjunction with the completion of the Amalgamation on October 4, 2011, the escrow conditions were satisfied. Debt issuance costs of approximately $32 million were capitalized and are being amortized over the term of the 8.125% Senior Notes using the effective interest method. Level 3 Financing assumed the obligations under the 8.125% Senior Notes and the notes were reclassified to long-term debt in the third quarter of 2011. Following the release of the escrowed funds in connection with the Notes Assumption, the escrowed funds were used to refinance certain existing indebtedness of Global Crossing in connection with the closing of the Amalgamation. | |||||||||
As of December 31, 2014, debt issuance discount remaining was $6 million. As a result of amortization, the capitalized debt issuance costs have been reduced to $22 million at December 31, 2014. | |||||||||
The 8.125% Senior Notes will be 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 July 1, 2015, at 100% of the principal amount of 8.125% 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 on and after July 1, 2015, 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 July 1, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2015 | 104.063 | % | |||||||
2016 | 102.031 | % | |||||||
2017 | 100 | % | |||||||
The offering of the 8.125% Senior Notes was not originally registered under the Securities Act of 1933, as amended, and included a registration rights agreement. In April 2012, all of the originally placed notes were exchanged for a new issue of 8.125% Senior Notes due 2019 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
8.875% Senior Notes due 2019 | |||||||||
On August 1, 2012, Level 3 Communications completed the offering of $300 million aggregate principal amount of its 8.875% Senior Notes due 2019. Debt issuance costs of approximately $7 million were capitalized and are being amortized over the term of the 8.875% Senior Notes as interest expense using the effective interest method. The net proceeds from the offering of the notes was used for general corporate purposes, including the potential repurchase, redemption, repayment or refinancing of the Company's and its subsidiaries' existing indebtedness from time to time. The 8.875% Senior Notes were priced at 100% of their principal amount and will mature on June 1, 2019. Interest on the notes accrues from August 1, 2012 and is payable on June 1 and December 1 of each year, beginning on December 1, 2012. The notes are senior unsecured obligations of Level 3 Communications, ranking equal in right of payment with all other senior unsecured obligations of Level 3. The notes will not be guaranteed by any of the Company's subsidiaries. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $5 million at December 31, 2014. | |||||||||
The 8.875% Senior Notes are subject to redemption at the option of Level 3 in whole or in part, at any time before June 1, 2015 at the redemption price equal to 100% of their principal amount, plus a make-whole premium and accrued and unpaid interest. On and after June 1, 2015, Level 3 may redeem all or part of the 8.875% Senior Notes, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve months beginning June 1, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2015 | 104.438 | % | |||||||
2016 | 102.219 | % | |||||||
2017 | 100 | % | |||||||
In addition, at any time or from time to time on or prior to June 1, 2015, Level 3 may redeem up to 35% of the original aggregate principal amount of the 8.875% Senior Notes (including any additional 8.875% Senior Notes) at a redemption price equal to 108.875% of the principal amount of the 8.875% Senior Notes so redeemed, plus accrued and unpaid interest thereon (if any) to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), with the net cash proceeds contributed to the capital of Level 3 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 aggregate; provided, however, that at least 65% of the original aggregate principal amount of the 8.875% Senior Notes (including any additional 8.875% Senior Notes) would remain outstanding immediately after giving effect to such redemption. Any such redemption shall be made within 90 days of such private placement or public offering upon not less than 30 nor more than 60 days prior notice. | |||||||||
The 8.875% Senior Notes were not originally registered under the Securities Act of 1933, as amended, and included a registration rights agreement. During the second quarter of 2013, all of the originally placed 8.875% Senior Notes due 2019 issued by Level 3 Communications, were exchanged for a new issue of 8.875% Senior Notes due 2019 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
8.625% Senior Notes due 2020 | |||||||||
On January 13, 2012, Level 3 Financing completed the offering of $900 million aggregate principal amount of its 8.625% Senior Notes due 2020. Debt issuance costs of approximately $20 million were capitalized and are being amortized over the term of the 8.625% Senior Notes as interest expense using the effective interest method. In February 2012, a portion of the net proceeds from the offering of the 8.625% Senior Notes were used to redeem all of Level 3 Financing's outstanding 9.25% Senior Notes due 2014 in aggregate principal amount of $807 million. Level 3 Financing redeemed its 9.25% Senior Notes due 2014 at a price of 102.313% of the principal amount and recognized a loss on extinguishment of debt of $22 million during the first quarter of 2012. | |||||||||
The remaining net proceeds constituted purchase money indebtedness under the existing senior secured credit agreement and indentures of the Company and Level 3 Financing and were used solely to fund the cost of construction, installation, acquisition, lease, development or improvement of any Telecommunications/IS assets (as defined in the existing senior secured credit agreement and indentures of Level 3). | |||||||||
The 8.625% Senior Notes will mature on July 15, 2020. Interest on the notes accrues from January 13, 2012 and is payable on January 15 and July 15 of each year, beginning on July 15, 2012. The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $14 million at December 31, 2014. | |||||||||
The 8.625% Senior Notes are subject to redemption at the option of Level 3 Financing in whole or in part, at any time before January 15, 2016 at the redemption price equal to 100% of their principal amount, plus a make-whole premium and accrued and unpaid interest. On and after January 15, 2016, Level 3 Financing may redeem all or part of the 8.625% Senior Notes, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve months beginning January 15, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2016 | 104.313 | % | |||||||
2017 | 102.156 | % | |||||||
2018 | 100 | % | |||||||
During the second quarter of 2012, all of the originally placed notes were exchanged for a new issue of 8.625% Senior Notes due 2020 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
7% Senior Notes due 2020 | |||||||||
On August 6, 2012, Level 3 Financing completed the offering of $775 million aggregate principal amount of its 7% Senior Notes due 2020. Debt issuance costs of approximately $15 million were capitalized and are being amortized over the term of the 7% Senior Notes as interest using the effective interest method. The net proceeds from the offering of the notes, along with cash on hand were used to redeem all of the outstanding 8.75% Senior Notes due 2017 issued by Level 3 Financing, including the payment of accrued interest and applicable premiums, and in connection with that redemption, the indenture relating to the 8.75% Senior Notes due 2017 was discharged. Level 3 Financing redeemed its 8.75% Senior Notes due 2017 at a price of 104.375% of the principal amount and recognized a loss on extinguishment of debt of $40 million. The 7% Senior Notes were priced at 100% of their principal amount and will mature on June 1, 2020. Interest on the notes accrues from August 6, 2012 and is payable on June 1 and December 1 of each year, beginning on December 1, 2012.The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $11 million at December 31, 2014. | |||||||||
The 7% Senior Notes are subject to redemption at the option of Level 3 Financing in whole or in part, at any time before June 1, 2016 at the redemption price equal to 100% of their principal amount, plus a make-whole premium and accrued and unpaid interest. On or after June 1, 2016, Level 3 Financing may redeem all or part of the 7% Senior Notes, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve months beginning June 1, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2016 | 103.5 | % | |||||||
2017 | 101.75 | % | |||||||
2018 | 100 | % | |||||||
In addition, at any time or from time to time on or prior to June 1, 2015, Level 3 Financing may redeem up to 35% of the original aggregate principal amount of the 7% Senior Notes (including any additional 7% Senior Notes) at a redemption price equal to 107% of the principal amount of the 7% Senior Notes so redeemed, plus accrued and unpaid interest thereon (if any) to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), with the net cash proceeds contributed to the capital of Level 3 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 aggregate; provided, however, that at least 65% of the original aggregate principal amount of the 7% Senior Notes (including any additional 7% Senior Notes) would remain outstanding immediately after giving effect to such redemption. Any such redemption shall be made within 90 days of such private placement or public offering upon not less than 30 nor more than 60 days prior notice. | |||||||||
The 7% Senior Notes were not originally registered under the Securities Act of 1933, as amended, and included a registration rights agreement. During the second quarter of 2013, all of the originally placed 7% Senior Notes due 2020 issued by Level 3 Financing, were exchanged for a new issue of 7% Senior Notes due 2020 with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
6.125% Senior Notes due 2021 | |||||||||
On November 14, 2013, Level 3 Financing completed the offering of $640 million aggregate principal amount of its 6.125% Senior Notes due 2021 (the "6.125% Senior Notes"). Debt issuance costs of approximately $12 million were capitalized and are being amortized over the term of the 6.125% Senior Notes as interest using the effective interest method.The net proceeds from the offering, together with cash on hand, were used to redeem all of Level 3 Financing’s outstanding 10% Senior Notes due 2018, including accrued interest, applicable premiums and expenses. The Company recognized a loss on extinguishment of debt of $56 million as a result of this transaction. The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. | |||||||||
The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. The 6.125% Senior Notes were priced at 100% of their principal amount and will mature on January 15, 2021. Interest on the Notes is payable on April 15 and October 15 of each year, beginning on April 15, 2014. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $11 million at December 31, 2014. | |||||||||
Prior to November 15, 2016, at the option of Level 3 Financing, the 6.125% Senior Notes will be subject to redemption, 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, at 100% of the principal amount of 6.125% Senior Notes so redeemed plus (i) the applicable make-whole premium set forth in the Indenture, as of the redemption date and (ii) accrued and unpaid interest thereon (if any) up to, but not including, the redemption date. On and after November 15, 2016, at the option of Level 3 Financing, the 6.125% Senior Notes will be subject to redemption, 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 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. The redemption price for the 6.125% Senior Notes if redeemed during the twelve months beginning November 15, of the years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2016 | 103.063 | % | |||||||
2017 | 101.531 | % | |||||||
2018 | 100 | % | |||||||
In addition, at any time or from time to time on or prior to November 15, 2016, Level 3 Financing may redeem up to 35% of the original aggregate principal amount of the 6.125% Senior Notes at a redemption price equal to 106.125% of the principal amount of the 6.125% 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 the capital of Level 3 Financing from one or more private placements of common stock 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 65% of the original aggregate principal amount of the 6.125% Senior Notes must remain outstanding immediately after giving effect to such redemption. Any such redemption is required to 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 6.125% Senior Notes was 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. | |||||||||
5.375% Senior Notes due 2022 | |||||||||
On August 12, 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”). 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 5.375% Notes as interest expense using the effective interest method. | |||||||||
As a result of amortization, the capitalized debt issuance costs have been reduced to $12 million at December 31, 2014. | |||||||||
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 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 on or prior to August 15, 2017, Level 3 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 Level 3 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 days 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. During the first quarter of 2015, all of the originally placed notes were exchanged for a new issue of 5.375% Senior Notes with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
5.75% Senior Notes due 2022 | |||||||||
On December 1, 2014, Level 3 issued a total of $600 million aggregate principal amount of its 5.75% Senior Notes due 2022 (the “5.75% Senior Notes”). Debt issuance costs of approximately $10 million were capitalized and are being amortized over the term of the 5.75% Senior Notes as interest expense using the effective interest method. The net proceeds from the offering of the notes, together with cash on hand were used to redeem all of the outstanding 11.875% Senior Notes due 2019 issued by Level 3 Financing, including the payment of accrued interest and applicable premiums, and in connection with that redemption, the indenture relating to the 11.875% Senior Notes due 2019 was discharged on December 31, 2014. Level 3 Financing redeemed its 11.875% Senior Notes due 2017 at a price of 106.859% of the principal amount and recognized a loss on extinguishment of debt of $53 million. | |||||||||
The 5.75% Senior Notes will mature on December 1, 2022. Interest on the 5.75% Senior Notes accrues at 5.75% per year and is payable on March 1 and September 1 of each year, beginning on March 1, 2015. | |||||||||
The capitalized debt issuance costs were not reduced significantly as a result of amortization and remain at $10 million at December 31, 2014. | |||||||||
The 5.75% Senior Notes will be subject to redemption at the option of Level 3, 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 December 1, 2017 at 100% of the principal amount of 5.75% 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 December 1, 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. The redemption price for the 5.75% Senior Notes if redeemed during the twelve months beginning December 1, of years indicated below: | |||||||||
Year | Redemption Price | ||||||||
2017 | 102.875 | % | |||||||
2018 | 101.4375 | % | |||||||
2019 and thereafter | 100 | % | |||||||
At any time or from time to time on or prior to December 1, 2017, Level 3 may redeem up to 40% of the original aggregate principal amount of the 5.75% Senior Notes at a redemption price equal to 105.75% of the principal amount of the 5.75% 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 the capital of Level 3 from one or more private placements of Level 3 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 5.75% 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 5.75% Senior Notes was not registered under the Securities Act of 1933, as amended, and the 5.75% Senior Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The 5.75% Senior Notes were sold to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States under Regulation S under the Securities Act of 1933, as amended. The registration rights agreement became effective as of December 1, 2014. During the first quarter of 2015, all of the originally placed notes were exchanged for a new issue of 5.75% Senior Notes with identical terms and conditions, other than those related to registration rights, in a registered exchange offer and are now freely tradeable. | |||||||||
7% Convertible Senior Notes due 2015 | |||||||||
On June 26, 2009, Level 3 Communications issued $200 million aggregate principal amount of 7% Convertible Senior Notes due 2015 under an indenture between Level 3 and The Bank of New York, as trustee. The 7% Convertible Senior Notes due 2015 were issued in conjunction with the exchange of approximately $142 million aggregate principal amount of the Company's 6% Convertible Subordinated Notes due 2010 and approximately $140 million aggregate principal amount of its 2.875% Convertible Senior Notes due 2010. As part of this exchange, Level 3 also paid $78 million in cash, including accrued and unpaid interest for the notes exchanged. | |||||||||
On October 15, 2009, Level 3 issued $275 million aggregate principal amount of 7% Convertible Senior due 2015, Series B under a second supplemental indenture between Level 3 and The Bank of New York, as trustee. The 7% Convertible Senior Notes due 2015, Series B are substantially similar in all respects to the 7% Convertible Senior Notes due 2015. The 7% Convertible Senior Notes due 2015, together with the 7% Convertible Senior Notes due 2015, Series B are referred to as the "7% Convertible Senior Notes due 2015". | |||||||||
The 7% Convertible Senior Notes due 2015 mature on March 15, 2015 and bear interest at a rate of 7% per annum, payable semiannually in arrears on March 15 and September 15. Interest payments commenced for the 7% Convertible Senior Notes due 2015 on September 15, 2009 and on March 15, 2010 for the 7% Convertible Senior Notes due 2015, Series B. The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by the Company and Level 3 Communications, LLC. The notes are unsecured, unsubordinated obligations of Level 3 Financing ranking equal in right of payment with all existing and future unsubordinated indebtedness of Level 3 Financing and are senior in right of payment to all existing and future indebtedness of Level 3 Financing expressly subordinated in right of payment to the notes. | |||||||||
The 7% Convertible Senior Notes due 2015 are convertible into shares of Level 3 common stock, at the option of the holder, at any time prior to maturity, unless previously repurchased or redeemed, or unless Level 3 has caused the conversion rights to expire. The 7% Convertible Senior Notes due 2015 may be converted at the rate of approximately 37 shares of common stock per each $1,000 principal amount of notes, subject to adjustment in certain circumstances. This is equivalent to a conversion price of approximately $27 per share. | |||||||||
Upon the occurrence of a designated event (a change of control or a termination of trading), holders of the 7% Convertible Senior Notes due 2015 will have the right, subject to certain exceptions and conditions, to require Level 3 to repurchase all or any part of the 7% Convertible Senior Notes due 2015 at a repurchase price equal to 100% of the principal amount plus accrued and unpaid interest thereon (if any) to, but excluding, the designated event purchase date. In addition, if an event treated as a change in control of Level 3 occurs, Level 3 will be obligated, subject to certain conditions, to offer to purchase all of the outstanding 7% Convertible Senior Notes due 2015 at a purchase price of 100% of the principal amount, plus a "make-whole" premium, by increasing the conversion rate applicable to such 7% Convertible Senior Notes due 2015. | |||||||||
During the fourth quarter of 2014, certain holders converted approximately $142 million of the 7% Convertible Senior Notes to common equity. Upon conversion, the Company issued an aggregate of approximately 5 million shares of Level 3 common stock, representing the approximately 37 shares per $1,000 note into which the notes were then convertible. | |||||||||
As of December 31, 2014, the debt issuance discount remaining was nil. Debt issuance costs of $4 million were originally capitalized and were being amortized over the term of the 7% Convertible Senior Notes due 2015 as interest expense using the effective interest method. The capitalized unamortized debt issuance costs were also nil at December 31, 2014. | |||||||||
Capital Leases | |||||||||
As of December 31, 2014, the Company had $207 million of capital leases. The Company leases property, equipment, certain dark fiber facilities and metro fiber under non-cancelable IRU agreements that are accounted for as capital leases. Interest rates on these capital leases approximated 6.2% on average as of December 31, 2014. | |||||||||
Other Debt | |||||||||
As of December 31, 2014, the Company had less than $1 million of other debt with an average interest rate of 5.0%. | |||||||||
Covenant Compliance | |||||||||
At December 31, 2014 and 2013, the Company was in compliance with the covenants on all outstanding debt issuances. | |||||||||
Long-Term Debt Maturities | |||||||||
Aggregate future contractual maturities of long-term debt and capital leases (excluding discounts and fair value adjustments) were as follows as of December 31, 2014 (dollars in millions): | |||||||||
2015 | $ | 349 | |||||||
2016 | 9 | ||||||||
2017 | 8 | ||||||||
2018 | 308 | ||||||||
2019 | 2,823 | ||||||||
Thereafter | 7,869 | ||||||||
$ | 11,366 | ||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
The accumulated balances for each classification of other comprehensive income (loss) are as follows: | |||||||||||||||||
(dollars in millions) | Net Foreign Currency Translation Adjustment | Holding Gain (Loss) on Interest Rate Swaps | Defined Benefit Pension Plans | Total | |||||||||||||
Balance at January 1, 2012 | $ | 39 | $ | (90 | ) | $ | (29 | ) | $ | (80 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 17 | 25 | (4 | ) | 38 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 65 | 3 | 68 | |||||||||||||
Balance at December 31, 2012 | 56 | — | (30 | ) | 26 | ||||||||||||
Other comprehensive income (loss) before reclassifications | 11 | — | (3 | ) | 8 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 2 | 2 | |||||||||||||
Balance at December 31, 2013 | 67 | — | (31 | ) | 36 | ||||||||||||
Other comprehensive income (loss) before reclassifications | (178 | ) | — | (9 | ) | (187 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 4 | 4 | |||||||||||||
Balance at December 31, 2014 | $ | (111 | ) | $ | — | $ | (36 | ) | $ | (147 | ) | ||||||
Employee_Benefit_Benefits_and_
Employee Benefit Benefits and Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Compensation and Retirement and Compensation Related Costs, Share-based Payments Disclosure [Abstract] | |||||||||||||||||||||||
Stock-Based Compensation | Employee Benefits and Stock-Based Compensation | ||||||||||||||||||||||
The Company records non-cash compensation expense for its outperform stock appreciation rights, performance restricted stock units, restricted stock units, 401(k) matching contributions, and, prior to 2014, other stock-based compensation expense associated with the Company's discretionary bonus grants. Total non-cash compensation expense related to these equity awards was $73 million in 2014, $151 million in 2013 and $135 million in 2012. | |||||||||||||||||||||||
The following table summarizes non-cash compensation expense and capitalized non-cash compensation for each of the three years ended December 31, 2014, 2013 and 2012 (dollars in millions): | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
OSOs | $ | 8 | $ | 21 | $ | 14 | |||||||||||||||||
Restricted Stock Units | 34 | 38 | 40 | ||||||||||||||||||||
Performance Restricted Stock Units | 14 | — | — | ||||||||||||||||||||
401(k) Match Expense | 23 | 24 | 23 | ||||||||||||||||||||
Restricted Stock Unit Bonus Grant | (5 | ) | 59 | 46 | |||||||||||||||||||
Management Incentive and Retention Plan | — | 10 | 13 | ||||||||||||||||||||
74 | 152 | 136 | |||||||||||||||||||||
Capitalized Non-Cash Compensation | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||
$ | 73 | $ | 151 | $ | 135 | ||||||||||||||||||
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. | |||||||||||||||||||||||
OSO and restricted stock units are granted under the Level 3 Communications, Inc. Stock Plan, as amended (the "Stock Plan"), which term extends through May 20, 2020. The Stock Plan provides for accelerated vesting of stock awards upon retirement if an employee meets certain age and years of service requirements and certain other requirements. Under the Stock Compensation guidance, if an employee meets the age and years of service requirements under the accelerated vesting provision, the award would be expensed at grant or expensed over the period from the grant date to the date the employee meets the requirements, even if the employee has not actually retired. The Company recognized non-cash compensation expense for employees that met the age and years of service requirements for accelerated vesting at retirement of $4 million, $5 million and $9 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
Outperform Stock Options | |||||||||||||||||||||||
OSOs were awarded through the end of 2013, and will continue to be outstanding through 2016. The Company's OSO program was designed so that the Company's stockholders would receive a market return on their investment before OSO holders receive any return on their OSOs. The Company believes that the OSO program directly aligned management's and stockholders' interests by basing stock option value on the Company's ability to outperform the market in general, as measured by the Standard & Poor's ("S&P") 500® Index. Participants in the OSO program do not realize any value from awards unless the Company's common stock price outperforms the S&P 500® Index during the life of the grant. When the stock price gain is greater than the corresponding gain on the S&P 500® Index, the value received for awards under the OSO plan is based on a formula involving a multiplier related to the level by which the Company's common stock outperforms the S&P 500® Index. To the extent that Level 3's common stock outperforms the S&P 500® Index, the value of OSO units to a holder may exceed the value of non-qualified stock options. | |||||||||||||||||||||||
The initial strike price, as determined on the day prior to the OSO grant date, is adjusted over time (the "Adjusted Strike Price"), until the settlement date. The adjustment is an amount equal to the percentage appreciation or depreciation in the value of the S&P 500® Index from the date of grant to the date of exercise. The value of the OSO increased for increasing levels of outperformance. OSO units had a multiplier range from zero to four depending upon the performance of Level 3 common stock relative to the S&P 500® Index as shown in the following table. | |||||||||||||||||||||||
If Level 3 Stock Outperforms the S&P 500® Index by: | Then the Pre-multiplier Gain Multiplied by a Success Multiplier of: | ||||||||||||||||||||||
0% or Less | — | ||||||||||||||||||||||
More than 0% but Less than 11% | Outperformance percentage multiplied by 4/11 | ||||||||||||||||||||||
11% or More | 4 | ||||||||||||||||||||||
The Pre-multiplier Gain is the Level 3 common stock price minus the Adjusted Strike Price on the date of settlement. | |||||||||||||||||||||||
Upon settlement of an OSO, the Company shall deliver or pay to the grantee the difference between the fair market value of a share of Level 3 common stock as of the day prior to the settlement date, less the Adjusted Strike Price (the "Exercise Consideration"). The Exercise Consideration may be paid in cash, Level 3 common stock or any combination of cash or Level 3 common stock at the Company's discretion. The number of shares of Level 3 common stock to be delivered by the Company to the grantee is determined by dividing the Exercise Consideration to be paid in Level 3 common stock by the fair market value of a share of Level 3 common stock as of the date prior to the settlement date. Fair market value was defined in the OSO agreement as the closing price per share of Level 3 common stock on the national securities exchange on which the common stock is traded. Settlement of the OSO units does not require any cash outlay by the employee. | |||||||||||||||||||||||
Beginning with awards made on or after April 1, 2007, OSO units were awarded monthly to employees in mid-management level and higher positions, had a three year life, vested 100% and fully settled on the third anniversary of the date of the award and were valued as of the first day of each month. Recipients have no discretion on the timing to exercise OSO units granted on or after April 1, 2007, thus the expected life of all such OSO units was three years. During the first quarter of 2010, the Company revised the eligibility criteria and grant schedule for its non-cash compensation. Effective April 1, 2010, the Company's OSOs were granted quarterly to certain levels of management. There were no changes to the vesting schedule, or any other aspects of the non-cash compensation plans. | |||||||||||||||||||||||
As of December 31, 2014, there was $7 million of unamortized compensation expense related to granted OSO units. The weighted average period over which this cost will be recognized is 1.26 years. | |||||||||||||||||||||||
The fair value of the OSO units granted was calculated by applying a modified Black-Scholes model with the assumptions identified below. The Company utilized a modified Black-Scholes model due to the additional variables required to calculate the effect of the market conditions and success multiplier of the OSO program. The Company believes that given the relative short life of the OSOs and the other variables used in the model, the modified Black-Scholes model provides a reasonable estimate of the fair value of the OSO units at the time of grant. | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
S&P 500 Expected Dividend Yield Rate | 2.24% | 2.05% | |||||||||||||||||||||
Expected Life | 3 years | 3 years | |||||||||||||||||||||
S&P 500 Expected Volatility Rate | 19% | 23% | |||||||||||||||||||||
Level 3 Common Stock Expected Volatility Rate | 39% | 39% | |||||||||||||||||||||
Expected S&P 500 Correlation Factor | 0.44 | 0.32 | |||||||||||||||||||||
Calculated Theoretical Value | 101% | 110% | |||||||||||||||||||||
Estimated Forfeiture Rate | 15% | 20% | |||||||||||||||||||||
The fair value of each OSO unit equaled the calculated theoretical value multiplied by the Level 3 common stock price on the grant date. | |||||||||||||||||||||||
As described above, recipients have no discretion on the timing to exercise OSO units. Thus the expected life of all such OSO units was three years. The Company estimates the stock price volatility using a combination of historical and implied volatility as Level 3 believes it is consistent with the approach most marketplace participants would consider using all available information to estimate expected volatility. The Company has determined that expected volatility is more reflective of market conditions and provides a more accurate indication of volatility than using solely historical volatility. In reaching this conclusion, the Company has considered many factors including the extent to which its future expectations of volatility over the respective term is likely to differ from historical measures. | |||||||||||||||||||||||
The fair value for OSO units awarded to participants during the years ended December 31, 2013 and 2012 was approximately $17 million and $29 million, respectively. | |||||||||||||||||||||||
Transactions involving OSO units awarded are summarized in the table below. The Option Price Per Unit identified in the table below represents the initial strike price, as determined on the day prior to the OSO grant date for those grants. | |||||||||||||||||||||||
Units | Initial Strike Price Per Unit | Weighted | Aggregate | Weighted | |||||||||||||||||||
Average | Intrinsic | Average | |||||||||||||||||||||
Initial | Value | Remaining | |||||||||||||||||||||
Strike | Contractual | ||||||||||||||||||||||
Price | Term (years) | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance January 1, 2012 | 1,288,712 | $ | 10.5 | - | $ | 36.6 | $ | 20.51 | $ | 1.8 | 1.53 | ||||||||||||
OSOs granted | 1,195,452 | $ | 16.99 | - | $ | 27.53 | $ | 24.65 | |||||||||||||||
OSOs forfeited | (72,335 | ) | $ | 12 | - | $ | 36.6 | $ | 21.8 | ||||||||||||||
OSOs expired | (278,111 | ) | $ | 15 | - | $ | 22.65 | $ | 18.45 | ||||||||||||||
OSOs exercised | (67,299 | ) | $ | 10.5 | - | $ | 13.8 | $ | 12.48 | ||||||||||||||
Balance December 31, 2012 | 2,066,419 | $ | 14.1 | - | $ | 36.6 | $ | 23.4 | $ | 6.6 | 1.73 | ||||||||||||
OSOs granted | 748,481 | $ | 20.29 | - | $ | 26.69 | $ | 22.64 | |||||||||||||||
OSOs forfeited | (271,883 | ) | $ | 14.1 | - | $ | 36.6 | $ | 22.33 | ||||||||||||||
OSOs expired | (286,924 | ) | $ | 16.35 | - | $ | 24.3 | $ | 21.48 | ||||||||||||||
OSOs exercised | (107,228 | ) | $ | 14.1 | - | $ | 14.1 | $ | 14.1 | ||||||||||||||
Balance December 31, 2013 | 2,148,865 | $ | 14.1 | - | $ | 36.6 | $ | 23.99 | $ | 31.6 | 1.46 | ||||||||||||
OSOs granted | — | $ | — | - | $ | — | $ | — | |||||||||||||||
OSOs forfeited | (52,901 | ) | $ | 16.99 | - | $ | 27.53 | $ | 22.99 | ||||||||||||||
OSOs expired | (106,844 | ) | $ | 36.6 | - | $ | 36.6 | $ | 36.6 | ||||||||||||||
OSOs exercised | (771,251 | ) | $ | 14.7 | - | $ | 27.53 | $ | 24.26 | ||||||||||||||
Balance December 31, 2014 | 1,217,869 | $ | 16.99 | - | $ | 27.53 | $ | 22.76 | $ | 88 | 0.9 | ||||||||||||
OSO Units Outstanding | OSO units Exercisable | ||||||||||||||||||||||
at December 31, 2014 | at December 31, 2014 | ||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||
Remaining | Initial | Initial | |||||||||||||||||||||
Life (years) | Strike Price | Strike Price | |||||||||||||||||||||
$ | 16.99 | - | $ | 27.53 | 1,217,869 | 0.9 | $ | 22.76 | — | $ | — | ||||||||||||
In the table above, the weighted average initial strike price represents the values used to calculate the theoretical value of OSO units on the grant date and the intrinsic value represents the value of OSO units that have outperformed the S&P 500® Index as of December 31, 2014, 2013 and 2012, respectively. As noted above, all of the outstanding OSO units granted have an expected life at the grant date of three years. | |||||||||||||||||||||||
The total realized value of OSO units settled was $18.7 million, $1.5 million and $0.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company issued 732,593, 90,879 and zero shares of Level 3 common stock upon the exercise of OSO units for the years ended December 31, 2014, 2013 and 2012, respectively. The Company paid cash in lieu of shares of Level 3 common stock for the realized value of OSO units settled for the year ended December 31, 2012. The number of shares of Level 3 common stock issued upon settlement of an OSO unit varies based upon the relative performance of Level 3 stock price and the S&P 500® Index between the initial grant date and settlement date of the OSO unit. | |||||||||||||||||||||||
Restricted Stock and Units and Performance Restricted Stock Units | |||||||||||||||||||||||
Restricted stock units are annually granted on July 1 to certain eligible recipients, including the Board of Directors, at no cost. Restrictions on transfer lapse over one to four year periods. | |||||||||||||||||||||||
Effective April 2014, the Company's Board of Directors approved the Restricted Stock Unit and | |||||||||||||||||||||||
Performance Restricted Stock Unit ("PRSUs") Master Award Agreement ("the Agreement"), which provides for the ability to award participants PRSUs instead of the historical award of OSOs. 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. | |||||||||||||||||||||||
The fair value of restricted stock units awarded totaled $96 million, $34 million and $69 million for the years ended December 31, 2014, 2013 and 2012, respectively. The fair value of these awards was calculated using the value of Level 3 common stock on the grant date and are being amortized over the periods in which the restrictions lapse. As of December 31, 2014, unamortized compensation cost related to nonvested restricted stock and restricted stock units was $85 million and the weighted average period over which this cost will be recognized is 3.18 years. | |||||||||||||||||||||||
The changes in nonvested restricted stock, restricted stock units and nonvested performance restricted stock units are shown in the following table: | |||||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Nonvested at January 1, 2012 | 2,030,783 | $ | 26.25 | ||||||||||||||||||||
Stock and units granted | 2,869,584 | $ | 24.13 | ||||||||||||||||||||
Lapse of restrictions | (1,048,757 | ) | $ | 26.06 | |||||||||||||||||||
Stock and units forfeited | (214,634 | ) | $ | 24.92 | |||||||||||||||||||
Nonvested at December 31, 2012 | 3,636,976 | $ | 24.71 | ||||||||||||||||||||
Stock and units granted | 1,617,592 | $ | 21.26 | ||||||||||||||||||||
Lapse of restrictions | (1,841,757 | ) | $ | 25.19 | |||||||||||||||||||
Stock and units forfeited | (488,461 | ) | $ | 23.1 | |||||||||||||||||||
Nonvested at December 31, 2013 | 2,924,350 | $ | 22.77 | ||||||||||||||||||||
Stock and units granted | 2,255,883 | $ | 42.36 | ||||||||||||||||||||
Lapse of restrictions | (1,151,830 | ) | $ | 22.94 | |||||||||||||||||||
Stock and units forfeited | (241,785 | ) | $ | 28.9 | |||||||||||||||||||
Nonvested at December 31, 2014 | 3,786,618 | $ | 33.91 | ||||||||||||||||||||
The total fair value of restricted stock and restricted stock units and PRSUs whose restrictions lapsed in the years ended December 31, 2014, 2013 and 2012 was $27 million, $46 million and $27 million, respectively. | |||||||||||||||||||||||
Management Incentive and Retention Plan | |||||||||||||||||||||||
Effective March 2012, the Company adopted a Management Incentive and Retention Plan ("MIRP") as a means of encouraging key management personnel to remain employed with the Company or one of its subsidiaries and to reward the achievement of established performance criteria. The MIRP provided an opportunity to receive two types of awards: a retention award and an incentive award. Participants' retention and incentive awards had a cash component only or a cash component and an equity component. The equity component was granted in the form of restricted stock units under the Stock Plan. The MIRP has terminated pursuant to its terms and there are no remaining unamortized compensation costs related to MIRP. | |||||||||||||||||||||||
A summary of the retention restricted stock units granted under the MIRP is shown in the following table: | |||||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Nonvested at January 1, 2012 | — | $ | — | ||||||||||||||||||||
Stock and units granted | 465,000 | $ | 25.92 | ||||||||||||||||||||
Lapse of restrictions | — | $ | — | ||||||||||||||||||||
Stock and units forfeited | — | $ | — | ||||||||||||||||||||
Nonvested at December 31, 2012 | 465,000 | $ | 25.92 | ||||||||||||||||||||
Stock and units granted | — | $ | — | ||||||||||||||||||||
Lapse of restrictions | (270,000 | ) | $ | 25.92 | |||||||||||||||||||
Stock and units forfeited | — | $ | — | ||||||||||||||||||||
Nonvested at December 31, 2013 | 195,000 | $ | 25.92 | ||||||||||||||||||||
Stock and units granted | — | ||||||||||||||||||||||
Lapse of restrictions | (195,000 | ) | $ | 25.92 | |||||||||||||||||||
Stock and units forfeited | — | ||||||||||||||||||||||
Nonvested at December 31, 2014 | — | ||||||||||||||||||||||
No retention restricted stock units were awarded during the year ended December 31, 2014 under the MIRP, and all prior awards were vested as of December 31, 2014. | |||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
As of December 31, 2012, there were warrants to purchase 45,593 shares of Level 3 common stock outstanding with an exercise price of $73.50, which expired in January 2013. All of the warrants were fully vested and compensation expense had been fully recognized in the Consolidated Statements of Operations. | |||||||||||||||||||||||
Defined Contribution Plans | |||||||||||||||||||||||
The Company sponsors a number of defined contribution plans. The principal defined contribution plans are discussed individually below. Other defined contribution plans are not individually significant and therefore have been summarized in aggregate below. | |||||||||||||||||||||||
The Company and its subsidiaries offer their qualified employees the opportunity to participate in a defined contribution retirement plan qualifying under the provisions of Section 401(k) of the Internal Revenue Code ("401(k) Plan"). Each employee is eligible to contribute, on a tax deferred basis, a portion of annual earnings generally not to exceed $17,500 in 2014 and $18,000 in 2015. Effective January 1, 2012, the Company matches 100% of employee contributions up to 4% of eligible earnings or applicable regulatory limits. | |||||||||||||||||||||||
The Company's matching contributions are made with Level 3 common stock based on the closing stock price on each pay date. The Company's matching contributions are made through units in the Level 3 Stock Fund, which represent shares of Level 3 common stock. The Level 3 Stock Fund is the mechanism that is used for Level 3 to make employer matching and other contributions to employees through the Level 3 401(k) Plan. Employees are not able to purchase units in the Level 3 Stock Fund. Employees are able to diversify the Company's matching contribution as soon as it is made, even if they are not fully vested, subject to insider trading rules and regulations. The Company's matching contributions will vest ratably over the first three years of service or over such shorter period until the employee has completed three years of service at such time the employee is then 100% vested in all Company matching contributions, including future contributions. The Company made 401(k) Plan matching contributions of $23 million, $24 million and $23 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company's matching contributions are recorded as non-cash compensation and included in network related expenses of $4 million, $4 million and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively, and in selling, general and administrative expenses of $19 million, $20 million and $19 million for the years ended December 31, 2014, 2013 and 2012, respectively. Former U.S.-based Global Crossing employees became eligible to participate in the Level 3 401(k) Plan starting January 1, 2012 and former tw telecom employees became eligible to participate in the Level 3 401(k) Plan starting January 1, 2015. | |||||||||||||||||||||||
The tw telecom 401(k) Plan ("tw telecom 401(k) Plan") provided 100% matching cash contributions up to a maximum 5% of eligible compensation. The Company's contributions to the tw telecom 401(k) Plan vest immediately. Expenses recorded by the Company relating to the tw telecom 401(k) Plan for the two months in 2014 subsequent to the completion of the Merger were approximately $2 million. Former tw telecom employees are eligible to participate in the Level 3 401(k) Plan starting January 1, 2015. | |||||||||||||||||||||||
Other defined contribution plans sponsored by the Company are individually not significant. On an aggregate basis the expenses recorded by the Company relating to these plans was approximately $6 million, $5 million and $7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
Defined Benefit Plans | |||||||||||||||||||||||
The Company has certain contributory and non-contributory employee pension plans, which are not significant to the financial position or operating results of the Company. The Company recognizes in its balance sheet the funded status of its defined benefit post-retirement plans, which is measured as the difference between the fair value of the plan assets and the benefit obligation. The Company is also required to recognize changes in the funded status within accumulated other comprehensive income, net of tax to the extent such changes are not recognized in earnings as components of periodic net benefit cost. The fair value of the plan assets was $151 million and $148 million as of December 31, 2014 and 2013, respectively. The total benefit obligation was $176 million and $165 million as of December 31, 2014 and 2013, respectively. Therefore, the total funded status was an obligation of $25 million as of December 31, 2014. The total funded status was an obligation of $17 million as of December 31, 2013. | |||||||||||||||||||||||
Annual Discretionary Bonus Grant | |||||||||||||||||||||||
The Company's annual discretionary bonus program is intended to motivate employees to achieve the Company's financial and business goals. Each participant is provided a target award expressed as a percentage of base salary. Actual awards under the program are based on corporate results as well as achievement of specific individual performance criteria during the bonus plan period, and may be paid in cash, restricted stock units, or a combination of the two, at the sole discretion of the Compensation Committee of the Board of Directors. | |||||||||||||||||||||||
As of December 31, 2014, $167 million had been accrued in current liabilities for this bonus plan, including employer liability for payroll taxes and charges. The Company generally expects to pay out 100% in cash in the first quarter of 2015. | |||||||||||||||||||||||
As of December 31, 2013, $124 million was accrued in current liabilities for this bonus plan, including employer liability for payroll taxes and charges. The Company paid out $57 million cash and 1.4 million immediately-vested restricted stock units in 2014 for this plan. | |||||||||||||||||||||||
As of December 31, 2012, $103 million was accrued in current liabilities for this bonus plan, including employer liability for payroll taxes and charges. The Company paid out $50 million cash and 2.1 million immediately-vested restricted stock units in 2013 for this plan. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The following table summarizes the income tax benefit (provision) attributable to the income (loss) before income taxes for each of the three years ended December 31, 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in millions) | |||||||||||||
Current: | |||||||||||||
United States federal | $ | — | $ | 9 | $ | — | |||||||
State | (1 | ) | (1 | ) | (2 | ) | |||||||
Foreign | (40 | ) | (37 | ) | (36 | ) | |||||||
(41 | ) | (29 | ) | (38 | ) | ||||||||
Deferred, net of changes in valuation allowances: | |||||||||||||
United States federal | 6 | (3 | ) | (3 | ) | ||||||||
State | 15 | — | — | ||||||||||
Foreign | 96 | (6 | ) | (7 | ) | ||||||||
Income tax benefit (provision) | $ | 76 | $ | (38 | ) | $ | (48 | ) | |||||
The United States and Foreign components of income (loss) before income taxes for each of the three years ended December 31, 2014, 2013 and 2012 are as follows (some of the income (loss) is subject to taxation in multiple jurisdictions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in millions) | |||||||||||||
United States | $ | 207 | $ | (122 | ) | $ | (434 | ) | |||||
Foreign | 31 | 51 | 60 | ||||||||||
$ | 238 | $ | (71 | ) | $ | (374 | ) | ||||||
A reconciliation of the actual income tax benefit (provision) and the tax computed by applying the U.S. federal rate (35%) to the income (loss) before income taxes for each of the three years ended December 31, 2014, 2013 and 2012 is shown in the following table: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in millions) | |||||||||||||
Computed tax (provision) benefit at statutory rate | $ | (83 | ) | $ | 25 | $ | 131 | ||||||
Effect of earnings in jurisdictions outside of US | 13 | 12 | 25 | ||||||||||
Change in valuation allowance | 197 | (27 | ) | (145 | ) | ||||||||
Permanent items | (44 | ) | (44 | ) | (48 | ) | |||||||
Indefinite-lived assets | 2 | (3 | ) | (3 | ) | ||||||||
Uncertain tax positions | 3 | 9 | (3 | ) | |||||||||
Changes in tax rates | (7 | ) | (7 | ) | (4 | ) | |||||||
Other, net | (5 | ) | (3 | ) | (1 | ) | |||||||
Income tax benefit (provision) | $ | 76 | $ | (38 | ) | $ | (48 | ) | |||||
The components of the net deferred tax assets (liabilities) as of December 31, 2014 and 2013 are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
(dollars in millions) | |||||||||||||
Deferred Tax Assets: | |||||||||||||
Accrued payroll and related benefits | $ | 113 | $ | 132 | |||||||||
Deferred revenue | 322 | 336 | |||||||||||
Unutilized tax net operating loss carry forwards | 5,218 | 4,791 | |||||||||||
Fixed assets and intangible assets | 90 | 102 | |||||||||||
Intercompany loss | 128 | 139 | |||||||||||
Other | 174 | 144 | |||||||||||
Total Deferred Tax Assets | 6,045 | 5,644 | |||||||||||
Deferred Tax Liabilities: | |||||||||||||
Fixed assets and intangible assets | (1,371 | ) | (790 | ) | |||||||||
Deferred revenue | (73 | ) | (76 | ) | |||||||||
Other | (59 | ) | (33 | ) | |||||||||
Foreign branch income | (130 | ) | (163 | ) | |||||||||
Total Deferred Tax Liabilities | (1,633 | ) | (1,062 | ) | |||||||||
Net Deferred Tax Assets before valuation allowance | 4,412 | 4,582 | |||||||||||
Valuation Allowance | (4,437 | ) | (4,698 | ) | |||||||||
Net Deferred Tax Liability after Valuation Allowance | $ | (25 | ) | $ | (116 | ) | |||||||
Balance sheet classification of deferred taxes: | |||||||||||||
Net current deferred income tax asset | $ | 8 | $ | 9 | |||||||||
Net current deferred income tax liability | — | (2 | ) | ||||||||||
Net non-current deferred income tax asset | 292 | 211 | |||||||||||
Net non-current deferred income tax liability | (325 | ) | (334 | ) | |||||||||
Net Deferred Tax Liability after Valuation Allowance | $ | (25 | ) | $ | (116 | ) | |||||||
On October 31, 2014, the Company completed its acquisition of tw telecom. The Merger qualified as a tax-free reorganization within the meaning of Section 368(a) of the Internal Revenue Code, and therefore the Company assumed the carryover tax basis of the acquired assets and liabilities of tw telecom. As a result, the Company recorded a net deferred tax liability of $15 million as the acquired deferred tax assets, net of valuation allowance, were offset by the deferred tax liabilities created by the additional financial reporting basis of the identifiable intangible assets. Simultaneously, the Company released $15 million of valuation allowance against its deferred tax assets as the acquired deferred tax liabilities serve as a source of taxable income to support such release. The final identification of tw telecom’s deferred taxes and the final determination of the purchase price allocation may be significantly different from the preliminary amounts reflected herein. | |||||||||||||
As of December 31, 2014, the Company had net operating loss carry forwards of approximately $10.3 billion (net of IRC Section 382 limitation) for U.S. federal income tax purposes, including $1 billion from the tw telecom acquisition. Although the tw telecom acquisition triggered an ownership change under Section 382 of the Internal Revenue Code, the Company has determined that its loss carryforwards should not be mathematically limited based on its value at the time of the ownership change and the expiration dates of its net operating losses. | |||||||||||||
The Company’s loss carry forwards expire in future years through 2034 and are subject to examination by the tax authorities until three years after the carry forwards are utilized. The U.S. federal tax loss carry forwards expire as follows (dollars in millions): | |||||||||||||
Expiring December 31, | Amount | ||||||||||||
2022 | $ | 186 | |||||||||||
2023 | 380 | ||||||||||||
2024 | 1,456 | ||||||||||||
2025 | 1,299 | ||||||||||||
2026 | 1,244 | ||||||||||||
2027 | 1,615 | ||||||||||||
2028 | 482 | ||||||||||||
2029 | 694 | ||||||||||||
2030 | 664 | ||||||||||||
2031 | 827 | ||||||||||||
2032 | 730 | ||||||||||||
2033 | 289 | ||||||||||||
2034 | 438 | ||||||||||||
$ | 10,304 | ||||||||||||
Under the rules prescribed by Internal Revenue Code Section 382 and applicable regulations, if certain transactions occur with respect to an entity's capital stock that result in a cumulative ownership shift of more than 50 percentage points by 5% stockholders over a three-year testing period, annual limitations are imposed with respect to the entity's ability to utilize its net operating loss carry forwards and certain current deductions against any taxable income the entity achieves in future periods. Level 3 extended the term of its Stockholder Rights Plan, which was adopted to protect its U.S. federal net operating loss carry forwards from these limitations. This plan was designed to deter trading that would result in a change of control (as defined in Section 382) without the limitations imposed by Section 382, and therefore protect the Company's ability to use its historical U.S. federal net operating loss carry forwards in the future. | |||||||||||||
As of December 31, 2014, the Company had state net operating loss carry forwards of approximately $7.9 billion that are subject to limitations on their utilization and have various expiration periods through 2034. The Company had approximately $6.1 billion of foreign jurisdiction net operating loss carry forwards that are subject to limitations on their utilization. The majority of these foreign jurisdiction tax loss carry forwards have no expiration period. | |||||||||||||
The Company recognizes deferred tax assets and liabilities for its domestic and non-U.S. operations, for operating loss and other credit carry forwards and the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. This assessment requires judgment as to the likelihood and amounts of future taxable income by tax jurisdiction. To date, the Company has provided a valuation allowance to reduce the deferred tax assets of most of its businesses in North America and certain other jurisdictions to the amount that is more likely than not to be realized as it believes the objective evidence of its historical pretax net losses in those jurisdictions outweighs the positive evidence of its forecasted future results. However, in 2014, the Company released approximately $100 million of deferred tax valuation allowance primarily related to its business in the UK due to consolidation of legal entities whereby one UK entity with a full valuation allowance was merged with an entity that had no valuation allowance against its deferred tax assets. As a result, management projects future profitability of that business. Although the Company believes its estimates are reasonable, the ultimate determination of the appropriate amount of valuation allowance involves significant judgment. | |||||||||||||
The Company monitors its cumulative loss position and other evidence each quarter to determine the appropriateness of its valuation allowance. If the Company continues to generate income before taxes in future periods, the conclusion about the appropriateness of the valuation allowance could change in a future period, and the Company could record a substantial benefit in its consolidated statement of operations when that occurs. | |||||||||||||
The valuation allowance for deferred tax assets was approximately $4.4 billion as of December 31, 2014 and $4.7 billion as of December 31, 2013. The change in valuation allowance is primarily due to the income before taxes in the United States and a valuation allowance release in the United Kingdom. In making the determination to release the valuation allowance, the Company analyzed, among other things, the tax-paying entity’s recent history of earnings, its cumulative earnings for the last 12 quarters, and forecasts of future earnings. | |||||||||||||
The Company provides for U.S. income taxes on the undistributed earnings and the other outside basis temporary differences of foreign corporations unless they are considered indefinitely reinvested outside the United States. The amount of temporary differences related to undistributed earnings and other outside basis temporary differences of investments in foreign subsidiaries upon which U.S. income taxes have not been provided was immaterial. | |||||||||||||
The Company's liability for uncertain income tax positions totaled $17 million at December 31, 2014 and $13 million at December 31, 2013. If the remaining balance of unrecognized tax benefits were realized in a future period, it would result in a tax benefit of $14 million ($13 million as of December 31, 2013) and a reduction in the effective tax rate. The Company does not expect that the liability for uncertain tax positions will materially increase or decrease during the twelve months ended December 31, 2015. A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows (dollars in millions): | |||||||||||||
Amount | |||||||||||||
Balance as of January 1, 2012 | $ | 15 | |||||||||||
Gross increases - tax positions of prior years | 4 | ||||||||||||
Gross increases - tax positions during 2012 | 1 | ||||||||||||
Gross decreases - lapse of statute of limitations | (1 | ) | |||||||||||
Gross decreases - settlement with taxing authorities | (1 | ) | |||||||||||
Balance as of December 31, 2012 | 18 | ||||||||||||
Gross increases - tax positions of prior years | — | ||||||||||||
Gross increases - tax positions during 2013 | 1 | ||||||||||||
Gross decreases - lapse of statute of limitations | (6 | ) | |||||||||||
Gross decreases - settlement with taxing authorities | — | ||||||||||||
Balance as of December 31, 2013 | 13 | ||||||||||||
Tax positions of prior years netted against deferred tax assets | 5 | ||||||||||||
Gross increases - tax positions of prior years | 1 | ||||||||||||
Gross increases - tax positions during 2014 | — | ||||||||||||
Gross decreases - lapse of statute of limitations | (2 | ) | |||||||||||
Gross decreases - settlement with taxing authorities | — | ||||||||||||
Balance as of December 31, 2014 | $ | 17 | |||||||||||
The unrecognized tax benefits in the table above do not include accrued interest and penalties of $17 million, $18 million and $22 million as of December 31, 2014, 2013 and 2012, respectively. The Company's policy is to record interest and penalties related to uncertain tax positions in income tax expense. The Company recognized accrued interest and penalties related to uncertain tax positions in income tax expense in its Consolidated Statements of Operations of a benefit of approximately $1 million, a benefit of approximately $4 million and charges of approximately $3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Company, or at least one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2003. The Internal Revenue Service and state and local taxing authorities reserve the right to audit any period where net operating loss carry forwards are available. | |||||||||||||
Income Tax Expense/(Benefit) was ($76) million in 2014 compared to $38 million in 2013 and $48 million in 2012. Income tax (benefit) or expense in all periods is primarily related to taxes in foreign jurisdictions. | |||||||||||||
The Company incurs tax expense attributable to income in various subsidiaries that are required to file state or foreign income tax returns on a separate legal entity basis. The Company also recognizes accrued interest and penalties in income tax expense related to uncertain tax benefits. Our tax rate is volatile and may move up or down with changes in, among other things, the amount and source of income or loss, our ability to utilize foreign tax credits, changes in tax laws, and the movement of liabilities established for uncertain tax positions as statutes of limitations expire or positions are otherwise effectively settled. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | 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 CODM is Jeff K. Storey, President and Chief Executive Officer. Historically, Mr. Storey has monitored performance and allocated resources based on the three separate geographic regions in which the Company operates. Accordingly, the Company's reportable segments have consisted of 1) North America, 2) Europe, the Middle East and Africa (EMEA), 3) and Latin America. As a result of the Merger (see Note 2 - Events Associated with the Merger of tw telecom), Mr. Storey also monitors performance of the former tw telecom business. Therefore, the Company is now comprised of the following four reportable segments for financial reporting purposes until the tw telecom segment can be fully integrated into North America, 1) North America, 2) EMEA, 3) Latin America, 4) and tw telecom, which represents the standalone operations of the former tw telecom business. 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. Historical presentation of segment information has been retrospectively reclassified to conform to the new geographical presentation. | |||||||||||||
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 selling, general and administrative expenses and network related expenses, (4) depreciation and amortization expense, and (5) non-cash stock-based compensation expense included within selling, general and administrative expenses and network related 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-based 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-based 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 equally 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, revenue from managed modem and its related intercarrier compensation services and revenue from the SBC Master Services Agreement, which was obtained through an acquisition in 2005 (managed modem was discontinued after 2012). | ||||||||||||
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 profitability of the Wholesale Voice Services component and the positive cash flows from the Other revenue 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 for each of the years ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Core Network Services Revenue: | |||||||||||||
North America | $ | 4,240 | $ | 3,949 | $ | 3,840 | |||||||
EMEA | 891 | 888 | 911 | ||||||||||
Latin America | 779 | 754 | 712 | ||||||||||
tw telecom | 285 | — | — | ||||||||||
Total Core Network Services Revenue | $ | 6,195 | $ | 5,591 | $ | 5,463 | |||||||
Wholesale Voice Services and Other Revenue: | |||||||||||||
North America | $ | 530 | $ | 681 | $ | 863 | |||||||
EMEA | 19 | 31 | 40 | ||||||||||
Latin America | 33 | 10 | 10 | ||||||||||
Total Wholesale Voice Services and Other Revenue | $ | 582 | $ | 722 | $ | 913 | |||||||
Total Consolidated Revenue | $ | 6,777 | $ | 6,313 | $ | 6,376 | |||||||
The following table presents Adjusted EBITDA by segment and reconciles Adjusted EBITDA to net income (loss) for each of the years ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Adjusted EBITDA: | |||||||||||||
North America | $ | 1,960 | $ | 1,799 | $ | 1,708 | |||||||
EMEA | 214 | 226 | 195 | ||||||||||
Latin America | 348 | 313 | 278 | ||||||||||
tw telecom | 105 | — | — | ||||||||||
Unallocated Corporate Expenses | (732 | ) | (714 | ) | (722 | ) | |||||||
Consolidated Adjusted EBITDA | $ | 1,895 | $ | 1,624 | $ | 1,459 | |||||||
Income Tax Benefit (Expense) | 76 | (38 | ) | (48 | ) | ||||||||
Total Other Expense | (775 | ) | (737 | ) | (949 | ) | |||||||
Depreciation and Amortization | (808 | ) | (800 | ) | (749 | ) | |||||||
Non-Cash Stock Compensation | (73 | ) | (151 | ) | (135 | ) | |||||||
Non-Cash Impairment | (1 | ) | (7 | ) | — | ||||||||
Total Consolidated Net Income (Loss) | $ | 314 | $ | (109 | ) | $ | (422 | ) | |||||
The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures for each of the years ended December 31: | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Capital Expenditures: | |||||||||||||
North America | $ | 432 | $ | 398 | $ | 407 | |||||||
EMEA | 117 | 128 | 115 | ||||||||||
Latin America | 153 | 134 | 122 | ||||||||||
tw telecom | 63 | — | — | ||||||||||
Unallocated Corporate Capital Expenditures | 145 | 100 | 99 | ||||||||||
Consolidated Capital Expenditures | $ | 910 | $ | 760 | $ | 743 | |||||||
The following table presents total assets by segment: | |||||||||||||
As of December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
North America | $ | 8,082 | $ | 8,133 | |||||||||
EMEA | 1,970 | 2,030 | |||||||||||
Latin America | 2,451 | 2,445 | |||||||||||
tw telecom | 8,160 | — | |||||||||||
Other | 284 | 266 | |||||||||||
Total Consolidated Assets | $ | 20,947 | $ | 12,874 | |||||||||
Commitments_Contingencies_and_
Commitments, Contingencies and Other Items | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 aggregate could materially affect its financial condition, future results of operations or cash flows. Amounts accrued for such contingencies aggregate to $171 million and are included in "Other" current liabilities and "Other liabilities" in the Company's Consolidated Balance Sheet at December 31, 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 December 31, 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. 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 is $55 million at December 31, 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. 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 September 2014, the first judicial court rendered a decision largely in the Company’s favor on the central issue underlying the assessments. SUNAT has appealed the court’s decision to the next judicial level. | |||||||||||||||||||||
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 $44 million at December 31, 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 July 2014 assessment was confirmed during the fourth quarter of 2014 at the first administrative level and the Company appealed this decision to the second administrative level. During the fourth quarter of 2014, the Company entered into an amnesty with the Rio de Janeiro state tax authorities with respect to potential ICMS liability for the 2008 tax period. As a result, the Company paid $5 million and released a reserve of $3 million of tax corresponding to the ICMS applicable on the provision of Internet access services. | |||||||||||||||||||||
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 $57 million at December 31, 2014 in excess of the accruals established for these matters. | |||||||||||||||||||||
Letters of Credit | |||||||||||||||||||||
It is customary for the Company 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 the Company in accordance with specified terms and conditions. As of December 31, 2014 and December 31, 2013, the Company had outstanding letters of credit or other similar obligations of approximately $28 million and $29 million, respectively, of which $23 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. | |||||||||||||||||||||
Operating Leases | |||||||||||||||||||||
The Company is leasing rights-of-way, facilities and other assets under various operating leases which, in addition to rental payments, may require payments for insurance, maintenance, property taxes and other executory costs related to the lease. Certain leases provide for adjustments in lease cost based upon adjustments in various price indexes and increases in the landlord's management costs. | |||||||||||||||||||||
The right-of-way agreements have various expiration dates through 2050. Payments under these right-of-way agreements were $173 million in 2014, $161 million in 2013 and $172 million in 2012. | |||||||||||||||||||||
The Company has obligations under non-cancelable operating leases for certain colocation, office facilities and other assets, including lease obligations for which facility related restructuring charges have been recorded. The lease agreements have various expiration dates through 2119. Rent expense, including common area maintenance, under non-cancelable lease agreements was $318 million in 2014, $311 million in 2013 and $308 million in 2012. | |||||||||||||||||||||
Certain non-cancelable right of way agreements provide for automatic renewal on a periodic basis. The Company includes payments due during these automatic renewal periods given the significant cost to relocate the Company's network and other facilities. | |||||||||||||||||||||
Future minimum payments for the next five years and thereafter under network and related right-of-way agreements and non-cancelable operating leases for facilities and other assets consist of the following as of December 31, 2014 (dollars in millions): | |||||||||||||||||||||
Right-of-Way | Facilities and Other Assets | Total | Future Minimum Sublease Receipts | ||||||||||||||||||
Agreements | |||||||||||||||||||||
2015 | $ | 118 | $ | 302 | $ | 420 | $ | 5 | |||||||||||||
2016 | 58 | 244 | 302 | 4 | |||||||||||||||||
2017 | 53 | 207 | 260 | 4 | |||||||||||||||||
2018 | 51 | 174 | 225 | 1 | |||||||||||||||||
2019 | 42 | 142 | 184 | 1 | |||||||||||||||||
Thereafter | 315 | 655 | 970 | — | |||||||||||||||||
$ | 637 | $ | 1,724 | $ | 2,361 | $ | 15 | ||||||||||||||
Certain right-of-way agreements include provisions for increases in payments in future periods based on the rate of inflation as measured by various price indexes. The Company has not included estimates for these increases in future periods in the amounts included above. | |||||||||||||||||||||
Certain other right-of-way agreements are cancelable or can be terminated under certain conditions by the Company. The Company includes the payments under such cancelable right-of-way agreements in the table above for a period of 1 year from January 1, 2015, if the Company does not consider it likely that it will cancel the right of way agreement within the next year. | |||||||||||||||||||||
Cost of Access and Third-Party Maintenance | |||||||||||||||||||||
In addition, the Company has purchase commitments with third-party access vendors that require it to make payments to purchase network services, capacity and telecommunications equipment. Some of these access vendor commitments require the Company to maintain minimum monthly and/or annual billings, in certain cases based on usage. In addition, the Company has purchase commitments with third parties that require it to make payments for maintenance services for certain portions of its network. | |||||||||||||||||||||
The following table summarizes the Company's purchase commitments at December 31, 2014 (dollars in millions): | |||||||||||||||||||||
Total | Less than | 2 - 3 | 4 - 5 | After 5 | |||||||||||||||||
1 Year | Years | Years | Years | ||||||||||||||||||
Cost of Access Services | $ | 710 | $ | 378 | $ | 262 | $ | 51 | $ | 19 | |||||||||||
Third-Party Maintenance Services | 329 | 67 | 55 | 51 | 156 | ||||||||||||||||
$ | 1,039 | $ | 445 | $ | 317 | $ | 102 | $ | 175 | ||||||||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information (as revised) | |||||||||||||||||||||||
Level 3 Financing 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 Level 3 Financing, Inc. 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 statements of operations, balance sheets and statements of 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 Operations | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 3,073 | $ | 3,918 | $ | (214 | ) | $ | 6,777 | |||||||||||
Costs and Expenses: | ||||||||||||||||||||||||
Network Access Costs | — | — | 1,177 | 1,566 | (214 | ) | 2,529 | |||||||||||||||||
Network Related Expenses | — | — | 762 | 484 | — | 1,246 | ||||||||||||||||||
Depreciation and Amortization | — | — | 277 | 531 | — | 808 | ||||||||||||||||||
Selling, General and Administrative Expenses | 21 | 2 | 735 | 423 | — | 1,181 | ||||||||||||||||||
Total Costs and Expenses | 21 | 2 | 2,951 | 3,004 | (214 | ) | 5,764 | |||||||||||||||||
Operating Income (Loss) | (21 | ) | (2 | ) | 122 | 914 | — | 1,013 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (143 | ) | (492 | ) | (2 | ) | (17 | ) | — | (654 | ) | |||||||||||||
Interest income (expense) affiliates, net | 1,227 | 1,827 | (2,890 | ) | (164 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (710 | ) | (2,047 | ) | 663 | — | 2,094 | — | ||||||||||||||||
Other, net | (53 | ) | — | 7 | (76 | ) | — | (122 | ) | |||||||||||||||
Total Other Expense | 321 | (712 | ) | (2,222 | ) | (256 | ) | 2,094 | (775 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 300 | (714 | ) | (2,100 | ) | 658 | 2,094 | 238 | ||||||||||||||||
Income Tax Expense | 14 | 4 | (1 | ) | 59 | — | 76 | |||||||||||||||||
Net Income (Loss) | 314 | (710 | ) | (2,101 | ) | 717 | 2,094 | 314 | ||||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (183 | ) | — | — | (183 | ) | 183 | (183 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | 131 | $ | (710 | ) | $ | (2,101 | ) | $ | 534 | $ | 2,277 | $ | 131 | ||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||
For the year ended December 31, 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 | $ | — | $ | — | $ | 2,825 | $ | 3,734 | $ | (246 | ) | $ | 6,313 | |||||||||||
Costs and Expenses: | ||||||||||||||||||||||||
Network Access Costs | — | — | 1,068 | 1,649 | (246 | ) | 2,471 | |||||||||||||||||
Network Related Expenses | — | — | 753 | 461 | — | 1,214 | ||||||||||||||||||
Depreciation and Amortization | — | — | 289 | 511 | — | 800 | ||||||||||||||||||
Selling, General and Administrative Expenses | 3 | 1 | 791 | 367 | — | 1,162 | ||||||||||||||||||
Total Costs and Expenses | 3 | 1 | 2,901 | 2,988 | (246 | ) | 5,647 | |||||||||||||||||
Operating Income (Loss) | (3 | ) | (1 | ) | (76 | ) | 746 | — | 666 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | ||||||||||||||||||
Interest expense | (151 | ) | (497 | ) | (3 | ) | 2 | — | (649 | ) | ||||||||||||||
Interest income (expense) affiliates, net | 1,091 | 1,706 | (2,679 | ) | (118 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (1,039 | ) | (2,164 | ) | 550 | — | 2,653 | — | ||||||||||||||||
Other, net | — | (85 | ) | 4 | (7 | ) | — | (88 | ) | |||||||||||||||
Total Other Expense | (99 | ) | (1,040 | ) | (2,128 | ) | (123 | ) | 2,653 | (737 | ) | |||||||||||||
Income (Loss) before Income Taxes | (102 | ) | (1,041 | ) | (2,204 | ) | 623 | 2,653 | (71 | ) | ||||||||||||||
Income Tax Expense | (7 | ) | 2 | — | (33 | ) | — | (38 | ) | |||||||||||||||
Net Income (Loss) | (109 | ) | (1,039 | ) | (2,204 | ) | 590 | 2,653 | (109 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 10 | 10 | — | 10 | (20 | ) | 10 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (99 | ) | $ | (1,029 | ) | $ | (2,204 | ) | $ | 600 | $ | 2,633 | $ | (99 | ) | ||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||
For the year ended December 31, 2012 (as revised) | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,657 | $ | 3,975 | $ | (256 | ) | $ | 6,376 | |||||||||||
Costs and Expenses: | ||||||||||||||||||||||||
Network Access Costs | — | — | 996 | 1,854 | (248 | ) | 2,602 | |||||||||||||||||
Network Related Expenses | — | — | 741 | 508 | — | 1,249 | ||||||||||||||||||
Depreciation and Amortization | — | — | 260 | 489 | — | 749 | ||||||||||||||||||
Selling, General and Administrative Expenses | 2 | 1 | 818 | 388 | (8 | ) | 1,201 | |||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,815 | 3,239 | (256 | ) | 5,801 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (158 | ) | 736 | — | 575 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Interest expense | (168 | ) | (535 | ) | (3 | ) | (27 | ) | — | (733 | ) | |||||||||||||
Interest income (expense) affiliates, net | 976 | 1,598 | (2,233 | ) | (341 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (1,188 | ) | (2,066 | ) | 92 | — | 3,162 | — | ||||||||||||||||
Other, net | (39 | ) | (184 | ) | 6 | (1 | ) | — | (218 | ) | ||||||||||||||
Total Other Expense | (419 | ) | (1,187 | ) | (2,137 | ) | (368 | ) | 3,162 | (949 | ) | |||||||||||||
Income (Loss) before Income Taxes | (421 | ) | (1,188 | ) | (2,295 | ) | 368 | 3,162 | (374 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (4 | ) | (43 | ) | — | (48 | ) | ||||||||||||||
Net Income (Loss) | (422 | ) | (1,188 | ) | (2,299 | ) | 325 | 3,162 | (422 | ) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Income Taxes | 106 | 106 | — | 16 | (122 | ) | 106 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (316 | ) | $ | (1,082 | ) | $ | (2,299 | ) | $ | 341 | $ | 3,040 | $ | (316 | ) | ||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
December 31, 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 | $ | 307 | $ | 261 | $ | — | $ | 580 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 34 | 703 | — | 737 | ||||||||||||||||||
Due from affiliates | 14,522 | 21,270 | — | — | (35,792 | ) | — | |||||||||||||||||
Other | 2 | 21 | 45 | 97 | — | 165 | ||||||||||||||||||
Total Current Assets | 14,531 | 21,296 | 387 | 1,067 | (35,792 | ) | 1,489 | |||||||||||||||||
Property, plant, and equipment, net | — | — | 3,152 | 6,708 | — | 9,860 | ||||||||||||||||||
Restricted cash and securities | 3 | — | 16 | 1 | — | 20 | ||||||||||||||||||
Goodwill and other intangibles, net | — | — | 373 | 8,730 | — | 9,103 | ||||||||||||||||||
Investment in subsidiaries | 16,686 | 14,777 | 3,729 | — | (35,192 | ) | — | |||||||||||||||||
Other assets, net | 28 | 129 | 9 | 309 | — | 475 | ||||||||||||||||||
Total Assets | $ | 31,248 | $ | 36,202 | $ | 7,666 | $ | 16,815 | $ | (70,984 | ) | $ | 20,947 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 215 | $ | 449 | $ | — | $ | 664 | ||||||||||||
Current portion of long-term debt | 333 | — | 3 | 13 | — | 349 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 174 | 99 | — | 273 | ||||||||||||||||||
Accrued interest | 12 | 158 | — | 4 | — | 174 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 118 | 169 | — | 287 | ||||||||||||||||||
Due to affiliates | — | — | 34,401 | 1,391 | (35,792 | ) | — | |||||||||||||||||
Other | — | 2 | 62 | 103 | — | 167 | ||||||||||||||||||
Total Current Liabilities | 345 | 160 | 34,973 | 2,228 | (35,792 | ) | 1,914 | |||||||||||||||||
Long-term debt, less current portion | 900 | 9,893 | 16 | 175 | — | 10,984 | ||||||||||||||||||
Deferred revenue, less current portion | — | — | 617 | 304 | — | 921 | ||||||||||||||||||
Other liabilities | 16 | 24 | 125 | 600 | — | 765 | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||
Stockholders' Equity (Deficit) | 29,987 | 26,125 | (28,065 | ) | 13,508 | (35,192 | ) | 6,363 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 31,248 | $ | 36,202 | $ | 7,666 | $ | 16,815 | $ | (70,984 | ) | $ | 20,947 | |||||||||||
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 | ||||||||||||||||||||||||
For the year ended December 31, 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 | $ | (178 | ) | $ | (458 | ) | $ | 625 | $ | 1,172 | $ | — | $ | 1,161 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital expenditures | — | — | (362 | ) | (548 | ) | — | (910 | ) | |||||||||||||||
Change in restricted cash and securities, net | — | — | 2 | (12 | ) | — | (10 | ) | ||||||||||||||||
Proceeds from sale of property, plant and equipment and other assets | — | — | — | 3 | — | 3 | ||||||||||||||||||
Investment in tw telecom, net of cash acquired | (474 | ) | — | — | 307 | — | (167 | ) | ||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | (474 | ) | — | (360 | ) | (252 | ) | — | (1,086 | ) | ||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 590 | — | — | (1 | ) | — | 589 | |||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (647 | ) | — | — | (24 | ) | — | (671 | ) | |||||||||||||||
Increase (decrease) due from/to affiliates, net | 708 | 457 | (305 | ) | (860 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 651 | 457 | (305 | ) | (885 | ) | — | (82 | ) | |||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (44 | ) | — | (44 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (1 | ) | (1 | ) | (40 | ) | (9 | ) | — | (51 | ) | |||||||||||||
Cash and Cash Equivalents at Beginning of Year | 8 | 6 | 347 | 270 | — | 631 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 7 | $ | 5 | $ | 307 | $ | 261 | $ | — | $ | 580 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (169 | ) | $ | (557 | ) | $ | 710 | $ | 729 | $ | — | $ | 713 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital expenditures | — | — | (312 | ) | (448 | ) | — | (760 | ) | |||||||||||||||
Change in restricted cash and securities, net | 9 | — | (1 | ) | 5 | — | 13 | |||||||||||||||||
Other | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 9 | — | (312 | ) | (442 | ) | — | (745 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | 1,502 | — | — | — | 1,502 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (173 | ) | (1,586 | ) | (4 | ) | (33 | ) | — | (1,796 | ) | |||||||||||||
Increase (decrease) due from/to affiliates, net | 88 | 642 | (433 | ) | (297 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (85 | ) | 558 | (437 | ) | (330 | ) | — | (294 | ) | ||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (22 | ) | — | (22 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (245 | ) | 1 | (39 | ) | (65 | ) | — | (348 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 253 | 5 | 386 | 335 | — | 979 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 8 | $ | 6 | $ | 347 | $ | 270 | $ | — | $ | 631 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities of Continuing Operations | $ | (165 | ) | $ | (520 | ) | $ | 140 | $ | 1,123 | $ | — | $ | 578 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital expenditures | — | — | (276 | ) | (467 | ) | — | (743 | ) | |||||||||||||||
Change in restricted cash and securities, net | 6 | — | 2 | 12 | — | 20 | ||||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Used in Investing Activities of Continuing Operations | 6 | — | (274 | ) | (457 | ) | — | (725 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 293 | 4,211 | — | — | — | 4,504 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | (4,161 | ) | — | (141 | ) | — | (4,302 | ) | |||||||||||||||
Proceeds from stock options exercised | 5 | — | — | — | — | 5 | ||||||||||||||||||
Increase (decrease) due from affiliates, net | 112 | 469 | (98 | ) | (483 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities of Continuing Operations | 410 | 519 | (98 | ) | (624 | ) | — | 207 | ||||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net Change in Cash and Cash Equivalents | 251 | (1 | ) | (232 | ) | 43 | — | 61 | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 2 | 6 | 618 | 292 | — | 918 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 253 | $ | 5 | $ | 386 | $ | 335 | $ | — | $ | 979 | ||||||||||||
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data (as revised) | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(as revised) | (as revised) | (as revised) | (as revised) | ||||||||||||||||||||||||||||||
(dollars in millions except per share data) | |||||||||||||||||||||||||||||||||
Revenue | $ | 1,609 | $ | 1,577 | $ | 1,625 | $ | 1,565 | $ | 1,629 | $ | 1,569 | $ | 1,914 | $ | 1,602 | |||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||
Network Access Costs | 614 | 629 | 613 | 616 | 607 | 608 | 695 | 618 | |||||||||||||||||||||||||
Network Related Expenses | 292 | 302 | 302 | 300 | 307 | 314 | 345 | 298 | |||||||||||||||||||||||||
Depreciation and Amortization | 184 | 194 | 187 | 199 | 187 | 203 | 250 | 204 | |||||||||||||||||||||||||
Selling, General and Administrative Expenses | 255 | 297 | 267 | 310 | 266 | 292 | 393 | 263 | |||||||||||||||||||||||||
Total Costs and Expenses | 1,345 | 1,422 | 1,369 | 1,425 | 1,367 | 1,417 | 1,683 | 1,383 | |||||||||||||||||||||||||
Operating Income | 264 | 155 | 256 | 140 | 262 | 152 | 231 | 219 | |||||||||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||||||||||||
Interest Income | — | — | — | — | 1 | — | — | — | |||||||||||||||||||||||||
Interest expense | (151 | ) | (169 | ) | (149 | ) | (167 | ) | (159 | ) | (165 | ) | (195 | ) | (148 | ) | |||||||||||||||||
Gain (Loss) on extinguishments of debt, net | — | — | — | — | — | (17 | ) | (53 | ) | (67 | ) | ||||||||||||||||||||||
Other, net | 6 | (50 | ) | (44 | ) | 14 | (11 | ) | 23 | (20 | ) | 9 | |||||||||||||||||||||
Total Other Expense | (145 | ) | (219 | ) | (193 | ) | (153 | ) | (169 | ) | (159 | ) | (268 | ) | (206 | ) | |||||||||||||||||
Income (Loss) Before Income Taxes | 119 | (64 | ) | 63 | (13 | ) | 93 | (7 | ) | (37 | ) | 13 | |||||||||||||||||||||
Income Tax (Expense) Benefit | (7 | ) | (14 | ) | (12 | ) | (11 | ) | (8 | ) | (14 | ) | 103 | 1 | |||||||||||||||||||
Net Income (Loss) | $ | 112 | $ | (78 | ) | $ | 51 | $ | (24 | ) | $ | 85 | $ | (21 | ) | $ | 66 | $ | 14 | ||||||||||||||
Net Income (Loss) Per Share - Basic | $ | 0.48 | $ | (0.36 | ) | $ | 0.21 | $ | (0.11 | ) | $ | 0.36 | $ | (0.09 | ) | $ | 0.22 | $ | 0.06 | ||||||||||||||
Net Income (Loss) Per Share - Diluted | $ | 0.47 | $ | (0.36 | ) | $ | 0.21 | $ | (0.11 | ) | $ | 0.35 | $ | (0.09 | ) | $ | 0.21 | $ | 0.06 | ||||||||||||||
Net income (loss) per share for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while net income (loss) per share for the year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the income (loss) per share for each of the four quarters may not equal the net income (loss) per share for the year. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company recognized a loss on extinguishment of debt of $53 million, related to the refinancing of the 11.875% Senior Notes due 2019. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company completed its acquisition of tw telecom and therefore the results of operations for the fourth quarter of 2014 include the results of tw telecom for November and December. Additionally, the Company incurred $70 million in expenses related to the acquisition of tw telecom. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company increased its senior secured credit facility by adding a $2 billion Tranche B 2022 Term Loan. The proceeds were used for the tw telecom acquisition. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2014, the Company also recognized a $100 million income tax benefit primarily related to the release of a foreign deferred tax valuation allowance. | |||||||||||||||||||||||||||||||||
During the third quarter of 2014, the Company entered into an indenture totaling $1 billion for 5.375% Senior Notes due 2022. The proceeds were used for the tw telecom acquisition. | |||||||||||||||||||||||||||||||||
During the second quarter of 2014. the Company recognized a loss of approximately $34 million resulting from the devaluation of Venezuelan bolivar denominated monetary assets and liabilities from the official rate of 6.3 to the SICAD 1 rate of 10.6. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2013, the Company recognized a loss on extinguishment of debt of $67 million including $10 million related to the refinancing of the Tranche B-II 2019 Term Loan, $56 million related to the refinancing of the 10% Senior Notes due 2018 and $1 million related to the refinancing of the Floating Rate Senior Notes due 2015. | |||||||||||||||||||||||||||||||||
During the third quarter of 2013, the Company recognized a loss on extinguishment of debt of $17 million, related to the refinancing of the $596 million Tranche B 2016 and the $815 million Tranche B 2019 Term Loans. | |||||||||||||||||||||||||||||||||
During the first quarter of 2013, the Venezuelan government devalued the Venezuelan bolivar by increasing the official rate from 4.30 Venezuelan bolivares to the U.S. dollar to 6.30 Venezuelan bolivares to the U.S. dollar. The devaluation of the Company's net monetary assets resulted in a charge of $22 million. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events |
On January 29, 2015, Level 3 Financing issued $500 million aggregate principal amount of its 5.625% Senior Notes due 2023. The 5.625% Senior Notes were priced at par and mature February 1, 2023. The 5.625% Senior Notes will pay interest on June 15 and December 15 of each year beginning on June 15, 2015. | |
The net proceeds from the offering of the 5.625% Senior Notes due 2023 together with cash on hand, will be used to redeem all $500 million aggregate principal amount of Level 3 Financing, Inc.’s 9.375% Senior Notes due 2019. In the second quarter 2015, the Company expects to recognize a loss of approximately $40 million on the extinguishment of debt associated with this transaction that will be recognized in Other Expense. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Restatement of Previously Issued Financial Statements [Policy Text Block] | ||||||||||
(dollars in millions) | As Previously Reported | Adjustment | Revised Reporting (1) | |||||||
Year Ended December 31, 2013 | ||||||||||
Cost of Revenue | $ | 2,471 | $ | (2,471 | ) | $ | — | |||
Network Access Costs | — | 2,471 | 2,471 | |||||||
Network Related Expenses | — | 1,214 | 1,214 | |||||||
Selling, General and Administrative Expenses | 2,376 | (1,214 | ) | 1,162 | ||||||
Total Costs and Expenses | 5,647 | — | 5,647 | |||||||
Year Ended December 31, 2012 | ||||||||||
Cost of Revenue | 2,602 | (2,602 | ) | — | ||||||
Network Access Costs | — | 2,602 | 2,602 | |||||||
Network Related Expenses | — | 1,249 | 1,249 | |||||||
Selling, General and Administrative Expenses | 2,450 | (1,249 | ) | 1,201 | ||||||
Total Costs and Expenses | 5,801 | — | 5,801 | |||||||
(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 years ended December 31, 2013 and 2012. | ||||||||||
As a result of the above, the Company also revised the Condensed Consolidating Statements of Operations for the years ended December 31, 2013 and 2012 in Note 17 Condensed Consolidating Financial Information, and the presentation for all periods within 2013 and 2012 included in Note 18 Unaudited Quarterly Financial Data. | ||||||||||
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 where it is required to consolidate the entity as the primary beneficiary or where it has concluded it is not the primary beneficiary. | ||||||||||
Foreign Currency Translation | Foreign Currency Translation | |||||||||
Local currencies of foreign subsidiaries are the functional currencies for financial reporting purposes except for certain foreign subsidiaries in Latin America. For operations outside the United States that have functional currencies other than the U.S. dollar, assets and liabilities are translated to U.S. dollars at period-end exchange rates, and revenue, expenses and cash flows are translated using average exchange rates prevailing during the year. A significant portion of the Company's non-United States subsidiaries have either the British pound, the euro or the Brazilian real as the functional currency, each of which experienced significant fluctuations against the U.S. dollar during 2014, 2013 and 2012. Foreign currency translation gains and losses are recognized as a component of accumulated other comprehensive income (loss) in stockholders' equity and in the Consolidated Statements of Comprehensive Income (Loss) in accordance with accounting guidance for foreign currency translation. The Company considers the majority of its investments in its foreign subsidiaries to be long-term in nature. The Company's non-United States exchange transaction gains (losses), including where transactions with its non-United States subsidiaries are not considered to be long-term in nature, are included within other income (expense) in Other, net on the Consolidated Statements of Operations. | ||||||||||
Reclassifications | Reclassifications | |||||||||
Certain amounts in the prior year Consolidated Financial Statements and accompanying footnotes have been reclassified to conform to the current year's presentation. | ||||||||||
Use of Estimates | Use of Estimates | |||||||||
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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The accounting estimates that require management's judgments include revenue recognition, revenue reserves, network access costs, network access cost dispute reserves, determination of the useful lives of long-lived assets, measurement and recognition of stock-based compensation expense, valuation of long-lived assets, goodwill and acquired indefinite-lived intangible assets for purposes of impairment testing, valuation of asset retirement obligations, allowance for doubtful accounts, measurement of the fair value of assets acquired and liabilities assumed in business combinations, accruals for estimated tax and legal liabilities, and valuation allowance for deferred tax assets. Actual results could differ from these estimates under different assumptions or conditions and such differences could be material. | ||||||||||
Revenue and Cost of Revenue for Communications Services | Revenue | |||||||||
Revenue is recognized monthly as the services are provided based on contractual amounts expected to be collected. Management establishes appropriate revenue reserves at the time services are rendered based on an analysis of historical credit activity to address, where significant, situations in which collection is not reasonably assured as a result of credit risk, potential billing disputes or other reasons. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material. | ||||||||||
Intercarrier compensation revenue is recognized when an interconnection agreement is in place with another carrier, or if an agreement has expired, when the parties have agreed to continue operating under the previous agreement until a new agreement is negotiated and executed, or at rates mandated by the Federal Communications Commission (the "FCC"). | ||||||||||
For certain sale and long-term indefeasible right of use, or IRU, contracts involving private line, wavelengths and dark fiber services, the Company may receive upfront payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract. | ||||||||||
Termination revenue is recognized when a customer discontinues service prior to the end of the contract period for which Level 3 had previously received consideration and for which revenue recognition was deferred. Termination revenue also is recognized when customers are required to make termination penalty payments to Level 3 to settle contractually committed purchase amounts that the customer no longer expects to meet or when a customer and Level 3 renegotiate a contract under which Level 3 is no longer obligated to provide services for consideration previously received and for which revenue recognition has been deferred. | ||||||||||
The Company is obligated under dark fiber IRUs and other capacity agreements to maintain its network in efficient working order and in accordance with industry standards. Customers are obligated for the term of the agreement to pay for their allocable share of the costs for operating and maintaining the network. The Company recognizes this revenue monthly as services are provided. | ||||||||||
Level 3's customer contracts require the Company to meet certain service level commitments. If Level 3 does not meet the required service levels, it may be obligated to provide credits, usually in the form of free service, for a short period of time. The credits are a reduction to revenue and, to date, have not been material. | ||||||||||
Network Access Costs | ||||||||||
Network Access Costs for the communications business include leased capacity, 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, but excludes 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 Company recognizes the network access costs as they are incurred in accordance with contractual requirements. The Company disputes incorrect billings from its suppliers of network services. The most prevalent types of disputes include disputes for circuits that are not disconnected by the supplier on a timely basis and usage bills with incorrect or inadequate information. Depending on the type and complexity of the issues involved, it may and often does take several quarters to resolve the disputes. The Company establishes appropriate network access costs reserves for disputed supplier billings based on an analysis of historical experience in resolving disputes with its suppliers. | ||||||||||
In determining the amount of the network access costs and related accrued liabilities to reflect in its Consolidated Financial Statements, the Company considers the adequacy of documentation of disconnect notices, compliance with prevailing contractual requirements for submitting these disconnect notices and disputes to the provider of the network services, and compliance with its interconnection agreements with these carriers. Judgment is required in estimating the ultimate outcome of the dispute resolution process, as well as any other amounts that may be incurred to conclude the negotiations or settle any litigation. Actual results may differ from these estimates under different assumptions or conditions and these differences could be material. | ||||||||||
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Network Related Expenses | |||||||||
Network Related Expenses includes certain expenses associated with the delivery of services to customers and the operation and maintenance of the Level 3 network, such as facility rent, utilities, maintenance and other costs, each related to the operation of its 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, operation and maintenance of its communications network, and accretion expense on asset retirement obligations, but excludes depreciation and amortization. | ||||||||||
Selling, General and Administrative Expenses | ||||||||||
Selling, General and Administrative Expenses | ||||||||||
USF and Gross Receipts Taxes | USF and Gross Receipts Taxes | |||||||||
The revenue recognition standards include guidance relating to any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, gross receipts taxes and certain state regulatory fees. The Company records Universal Service Fund ("USF") contributions where the Company is the primary obligor for the taxes assessed in each jurisdiction where it does business on a gross basis in its Consolidated Statements of Operations, but generally records gross receipts taxes and certain state regulatory fees billed to its customers on a net basis in its Consolidated Statements of Operations. Total revenue and network access cost on the Consolidated Statements of Operations includes USF contributions totaling $234 million, $194 million and $191 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
Share-Based Compensation | Stock-Based Compensation | |||||||||
The Company recognizes the estimated fair value of stock-based compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award, which is generally the vesting term or term for restrictions on transfer that lapse, as the case may be. The Company funded a portion of its 2013 and 2012 discretionary bonus in restricted stock unit awards that vested upon issuance. The Company estimates forfeiture rates based on its historical experience for the type of award, adjusted for expected activities as necessary. | ||||||||||
Income Taxes | Income Taxes | |||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||
The Company classifies investments as cash equivalents if they are readily convertible to cash and have original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of highly liquid investments in government and government agency securities and money market funds issued or managed by financial institutions in the U.S., Europe and Latin America and commercial paper depending on liquidity requirements. As of December 31, 2014, 2013 and 2012, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity. | ||||||||||
Restricted Cash and Securities | Restricted Cash and Securities | |||||||||
Restricted cash and securities consists primarily of cash and investments that serve to collateralize outstanding letters of credit and certain performance and operating obligations of the Company. Restricted cash and securities are recorded as current or non-current assets in the Consolidated Balance Sheets depending on the duration of the restriction and the purpose for which the restriction exists. Restricted cash and securities are stated at cost which approximates fair value as of December 31, 2014 and 2013. | ||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||||||||
Trade accounts receivable are recorded at the invoiced amount and can bear interest. The Company establishes an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. The Company determines the allowance for doubtful accounts based on the aging of its accounts receivable balances, the credit quality of its customers and an analysis of its historical experience of bad debt write-offs. Accounts receivable balances are written off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. The Company recognized bad debt expense, net of recoveries, of approximately $22 million in 2014, $17 million in 2013 and $15 million in 2012 | ||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||
Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives: | ||||||||||
Facility and Leasehold Improvements | 15 | - | 40 | years | ||||||
Network Infrastructure (including fiber and conduit) | 25 | - | 50 | years | ||||||
Operating Equipment | 5 | - | 15 | years | ||||||
Furniture, Fixtures, Office Equipment and Other | 3 | - | 7 | years | ||||||
The Company performs internal reviews to evaluate the depreciable lives of its property, plant and equipment annually, or more frequently if new facts and circumstances arise, that may affect management's original estimates. Due to the rapid changes in technology and the competitive environment, selecting the estimated economic life of telecommunications property, plant, and equipment requires a significant amount of judgment. The Company's internal reviews take into account input from the Company's global engineering and network services personnel, actual usage, the physical condition of the Company's property, plant, and equipment, industry data, and other relevant factors. 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 different than the remaining previously estimated useful lives. The Company completed an 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 year ended December 31, 2014 (in millions, except per share amounts): | ||||||||||
Net Income | $ | 90 | ||||||||
Basic Net Income per Share | $ | 0.35 | ||||||||
Diluted Net Income per Share | $ | 0.35 | ||||||||
Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured. | ||||||||||
The Company capitalizes costs directly associated with expansions and improvements of the Company's communications network and customer installations, including employee-related costs, and generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of 3 to 7 years. | ||||||||||
In addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll-related expenses for employees directly associated with business support systems projects are capitalized. The total cost of the business support system is amortized over an estimated useful life of 3 years. | ||||||||||
Impairment of Finite Lived Intangible Assets and Property Plant and Equipment | Long-Lived Assets Including Finite-Lived Purchased Intangible Assets | |||||||||
The Company amortizes acquired intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 4 to 12 years. | ||||||||||
The Company evaluates long-lived assets, such as property, plant and equipment and acquired intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the asset groups are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the assets plus net proceeds expected from disposition of the assets, if any, are less than the carrying value of the assets. If an asset is deemed to be impaired, the amount of the impairment loss is the excess of the asset's carrying value over its estimated fair value. | ||||||||||
Asset Retirement Obligations | Asset Retirement Obligations | |||||||||
The Company recognizes a liability for the estimated fair value of legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset in the period incurred. The fair value of the obligation is also capitalized as property, plant and equipment and then amortized over the estimated remaining useful life of the associated asset. Increases to the asset retirement obligation liability due to the passage of time are recognized as accretion expense and included within network related expenses. Changes in the liability due to revisions to the amount or timing of future cash flows are recognized by increasing or decreasing the liability with the offset adjusting the carrying amount of the related long-lived asset. To the extent that the downward revisions exceed the carrying amount of the related long-lived asset initially recorded when the asset retirement obligation liability was established, the Company records the remaining adjustment as a reduction to depreciation expense, to the extent of historical depreciation of the related long-lived asset, and then to network related expenses. | ||||||||||
Goodwill and Acquired Indefinite-Lived Intangible Assets | Goodwill and Acquired Indefinite-Lived Intangible Assets | |||||||||
Accounting guidance prohibits the amortization of goodwill and purchased intangible assets with indefinite useful lives. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually as of October 1st and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. | ||||||||||
The Company's goodwill impairment review process considers the fair value of each reporting unit relative to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit's goodwill must be determined and compared to the carrying value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the two step goodwill impairment evaluation. | ||||||||||
At the time of each impairment assessment date in 2014, 2013 and 2012, the Company's reporting units consisted of its three regional operating units in: North America; Europe, the Middle East and Africa ("EMEA"); and Latin America. | ||||||||||
The Company's indefinite-lived intangible assets impairment review process compares the estimated fair value of the indefinite-lived intangible assets to their respective carrying values. If the fair value of the indefinite-lived intangible assets exceeds their carrying values, then the indefinite-lived intangible assets are not impaired. If the carrying value of the indefinite-lived intangible assets exceeds their fair value, then an impairment loss equal to the difference will be recorded. In accordance with applicable accounting guidance, an entity may assess qualitative factors to determine whether it is more likely than not that the fair value exceeds the carrying value prior to performing the two step evaluation. If it is determined that it is unlikely the carrying value exceeds the fair value, then the entity is not required to complete the two step indefinite-lived intangible assets impairment evaluation. | ||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | |||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, accounts receivable, restricted cash and securities and derivatives. The Company maintains its cash equivalents, restricted cash and securities and derivatives with various financial institutions. These financial institutions are primarily located in the United States, Europe and Latin America and the Company's policy is to limit exposure with any one institution. As part of its cash and risk management processes, the Company performs periodic evaluations of the relative credit standing of the financial institutions. The Company also has established guidelines relative to financial instrument credit ratings, diversification and maturities that seek to maintain safety and liquidity. The Company's investment strategy generally results in lower yields on investments but reduces the risk to principal in the short term prior to these funds being used in the Company's business. Notwithstanding the devaluation of the Venezuelan bolivar, the Company has not experienced any material losses on financial instruments held at financial institutions. | ||||||||||
The Company provides communications services to a wide range of wholesale and enterprise customers, ranging from well capitalized national carriers to small early stage companies primarily in the United States, Europe, and Latin America. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising Level 3's customer base and their dispersion across many different industries and geographical regions. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers, although letters of credit and deposits are required in certain limited circumstances. The Company has from time to time entered into agreements with value-added resellers and other channel partners to reach consumer and enterprise markets for voice services. The Company has policies and procedures in place | ||||||||||
to evaluate the financial condition of these resellers prior to initiating service to the final customer. The Company maintains an allowance for doubtful accounts based upon the expected collectability of accounts receivable. Due to the Company's credit evaluation and collection process, bad debt expenses have not been significant; however, the Company is not able to predict changes in the financial stability of its customers. Any material change in the financial status of any one or a particular group of customers may cause the Company to adjust its estimate of the recoverability of receivables and could have a material adverse effect on the Company's results of operations. Fair values of accounts receivable approximate carrying amount due to the short period of time to collection. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2012 | |||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ||||||||||||||||||
(dollars in millions) | As Previously Reported | Adjustment | Revised Reporting (1) | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Cost of Revenue | $ | 2,471 | $ | (2,471 | ) | $ | — | |||||||||||
Network Access Costs | — | 2,471 | 2,471 | |||||||||||||||
Network Related Expenses | — | 1,214 | 1,214 | |||||||||||||||
Selling, General and Administrative Expenses | 2,376 | (1,214 | ) | 1,162 | ||||||||||||||
Total Costs and Expenses | 5,647 | — | 5,647 | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Cost of Revenue | 2,602 | (2,602 | ) | — | ||||||||||||||
Network Access Costs | — | 2,602 | 2,602 | |||||||||||||||
Network Related Expenses | — | 1,249 | 1,249 | |||||||||||||||
Selling, General and Administrative Expenses | 2,450 | (1,249 | ) | 1,201 | ||||||||||||||
Total Costs and Expenses | 5,801 | — | 5,801 | |||||||||||||||
Property, Plant and Equipment | Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives: | |||||||||||||||||
Facility and Leasehold Improvements | 15 | - | 40 | years | ||||||||||||||
Network Infrastructure (including fiber and conduit) | 25 | - | 50 | years | ||||||||||||||
Operating Equipment | 5 | - | 15 | years | ||||||||||||||
Furniture, Fixtures, Office Equipment and Other | 3 | - | 7 | years | ||||||||||||||
The components of the Company's property, plant and equipment as of December 31, 2014 and 2013 are as follows (dollars in millions): | ||||||||||||||||||
Cost | Accumulated | Net | ||||||||||||||||
Depreciation | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||
Land | $ | 192 | $ | — | $ | 192 | ||||||||||||
Land Improvements | 73 | (50 | ) | 23 | ||||||||||||||
Facility and Leasehold Improvements | 2,489 | (1,265 | ) | 1,224 | ||||||||||||||
Network Infrastructure | 8,941 | (3,447 | ) | 5,494 | ||||||||||||||
Operating Equipment | 7,217 | (4,669 | ) | 2,548 | ||||||||||||||
Furniture, Fixtures and Office Equipment | 255 | (177 | ) | 78 | ||||||||||||||
Other | 29 | (21 | ) | 8 | ||||||||||||||
Construction-in-Progress | 293 | — | 293 | |||||||||||||||
$ | 19,489 | $ | (9,629 | ) | $ | 9,860 | ||||||||||||
December 31, 2013 | ||||||||||||||||||
Land | $ | 193 | $ | — | $ | 193 | ||||||||||||
Land Improvements | 72 | (47 | ) | 25 | ||||||||||||||
Facility and Leasehold Improvements | 2,207 | (1,193 | ) | 1,014 | ||||||||||||||
Network Infrastructure | 8,505 | (3,279 | ) | 5,226 | ||||||||||||||
Operating Equipment | 6,057 | (4,381 | ) | 1,676 | ||||||||||||||
Furniture, Fixtures and Office Equipment | 196 | (168 | ) | 28 | ||||||||||||||
Other | 22 | (21 | ) | 1 | ||||||||||||||
Construction-in-Progress | 77 | — | 77 | |||||||||||||||
$ | 17,329 | $ | (9,089 | ) | $ | 8,240 | ||||||||||||
Change in Accounting Estimate | 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 year ended December 31, 2014 (in millions, except per share amounts): | ||||||||||||||||||
Net Income | $ | 90 | ||||||||||||||||
Basic Net Income per Share | $ | 0.35 | ||||||||||||||||
Diluted Net Income per Share | $ | 0.35 | ||||||||||||||||
Events_Associated_with_the_Mer1
Events Associated with the Merger of tw telecom inc. (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Schedule of the Final Purchase Price Allocation | ||||||||
Initial Purchase Price Allocation | ||||||||
(dollars in millions) | ||||||||
Assets: | ||||||||
Cash, Cash Equivalents and Restricted Cash | $ | 309 | ||||||
Property, Plant and Equipment | 1,555 | |||||||
Goodwill | 5,124 | |||||||
Identifiable Intangible Assets | 1,323 | |||||||
Other Assets | 138 | |||||||
Total Assets | 8,449 | |||||||
Liabilities: | ||||||||
Long-Term Debt | (2,099 | ) | ||||||
Deferred Revenue | (60 | ) | ||||||
Other Liabilities | (279 | ) | ||||||
Total Liabilities | (2,438 | ) | ||||||
Total Consideration to be Allocated | $ | 6,011 | ||||||
Schedule of Unaudited Pro Forma Financial Information for the Amalgamation | 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). | |||||||
Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Total Revenue | $ | 8,123 | $ | 7,825 | ||||
Net Income (Loss) | $ | 141 | $ | (165 | ) | |||
Net Income (Loss) per Share- Basic | $ | 0.42 | $ | (0.52 | ) | |||
Net Income (Loss) per Share - Diluted | $ | 0.42 | $ | (0.52 | ) | |||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment | Depreciation and amortization for the Company's property, plant and equipment are computed using the straight-line method based on the following estimated useful lives: | ||||||||||||
Facility and Leasehold Improvements | 15 | - | 40 | years | |||||||||
Network Infrastructure (including fiber and conduit) | 25 | - | 50 | years | |||||||||
Operating Equipment | 5 | - | 15 | years | |||||||||
Furniture, Fixtures, Office Equipment and Other | 3 | - | 7 | years | |||||||||
The components of the Company's property, plant and equipment as of December 31, 2014 and 2013 are as follows (dollars in millions): | |||||||||||||
Cost | Accumulated | Net | |||||||||||
Depreciation | |||||||||||||
December 31, 2014 | |||||||||||||
Land | $ | 192 | $ | — | $ | 192 | |||||||
Land Improvements | 73 | (50 | ) | 23 | |||||||||
Facility and Leasehold Improvements | 2,489 | (1,265 | ) | 1,224 | |||||||||
Network Infrastructure | 8,941 | (3,447 | ) | 5,494 | |||||||||
Operating Equipment | 7,217 | (4,669 | ) | 2,548 | |||||||||
Furniture, Fixtures and Office Equipment | 255 | (177 | ) | 78 | |||||||||
Other | 29 | (21 | ) | 8 | |||||||||
Construction-in-Progress | 293 | — | 293 | ||||||||||
$ | 19,489 | $ | (9,629 | ) | $ | 9,860 | |||||||
December 31, 2013 | |||||||||||||
Land | $ | 193 | $ | — | $ | 193 | |||||||
Land Improvements | 72 | (47 | ) | 25 | |||||||||
Facility and Leasehold Improvements | 2,207 | (1,193 | ) | 1,014 | |||||||||
Network Infrastructure | 8,505 | (3,279 | ) | 5,226 | |||||||||
Operating Equipment | 6,057 | (4,381 | ) | 1,676 | |||||||||
Furniture, Fixtures and Office Equipment | 196 | (168 | ) | 28 | |||||||||
Other | 22 | (21 | ) | 1 | |||||||||
Construction-in-Progress | 77 | — | 77 | ||||||||||
$ | 17,329 | $ | (9,089 | ) | $ | 8,240 | |||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||
Schedule of Asset Retirement Obligations [Table Text Block] | The following table provides asset retirement obligation activity for the years ended December 31, 2014 and 2013 (dollars in millions): | ||||||||
2014 | 2013 | ||||||||
Asset retirement obligation at January 1 | $ | 56 | $ | 55 | |||||
Accretion expense | 8 | 7 | |||||||
Liabilities assumed in tw telecom acquisition | 22 | — | |||||||
Liabilities settled | (7 | ) | (6 | ) | |||||
Revision in estimated cash flows | 7 | — | |||||||
Effect of foreign currency rate change | (1 | ) | — | ||||||
Asset retirement obligation at December 31 | $ | 85 | $ | 56 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill Disclosure [Abstract] | ||||
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill during the years ended December 31, 2014 and 2013 are as follows (dollars in millions): | |||
Total | ||||
Balance as of January 1, 2013 | $ | 2,565 | ||
Goodwill adjustments | 12 | |||
Balance as of December 31, 2013 | 2,577 | |||
Goodwill adjustments | (12 | ) | ||
Goodwill acquired in tw telecom acquisition | 5,124 | |||
Balance as of December 31, 2014 | $ | 7,689 | ||
Acquired_Intangible_Assets_Tab
Acquired Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Acquired Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of acquisition-related intangible assets | Identifiable acquisition-related intangible assets as of December 31, 2014 and 2013 were as follows (dollars in millions): | |||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | |||||||||||
Amount | ||||||||||||
December 31, 2014 | ||||||||||||
Finite-Lived Intangible Assets: | ||||||||||||
Customer Contracts and Relationships | $ | 1,977 | $ | (741 | ) | $ | 1,236 | |||||
Trademarks | 115 | (47 | ) | 68 | ||||||||
Patents and Developed Technology | 228 | (133 | ) | 95 | ||||||||
2,320 | (921 | ) | 1,399 | |||||||||
Indefinite-Lived Intangible Assets: | ||||||||||||
Trade Name | 15 | — | 15 | |||||||||
$ | 2,335 | $ | (921 | ) | $ | 1,414 | ||||||
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: | ||||||||||||
Trade Name | 32 | — | 32 | |||||||||
$ | 1,031 | $ | (826 | ) | $ | 205 | ||||||
Schedule of estimated amortization expense of acquired finite-lived intangible asset | As of December 31, 2014, estimated amortization expense for the Company’s finite-lived acquisition-related intangible assets over the next five years and thereafter is as follows (dollars in millions): | |||||||||||
2015 | $ | 242 | ||||||||||
2016 | 223 | |||||||||||
2017 | 208 | |||||||||||
2018 | 205 | |||||||||||
2019 | 188 | |||||||||||
Thereafter | 333 | |||||||||||
$ | 1,399 | |||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 long-term debt as well as the input levels used to determine these fair values as of December 31, 2014 and 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) | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Liabilities Not Recorded at Fair Value in the Financial Statements: | |||||||||||||||||||||||||
Long-term Debt, including the current portion: | |||||||||||||||||||||||||
Term Loans | $ | 4,590 | $ | 2,604 | $ | 4,593 | $ | 2,633 | $ | — | $ | — | |||||||||||||
Senior Notes | 6,203 | 5,198 | 6,481 | 5,673 | — | — | |||||||||||||||||||
Convertible Notes | 333 | 474 | — | — | 868 | 647 | |||||||||||||||||||
Capital Leases and Other | 207 | 86 | — | — | 207 | 86 | |||||||||||||||||||
Total Long-term Debt, including the current portion: | $ | 11,333 | $ | 8,362 | $ | 11,074 | $ | 8,306 | $ | 1,075 | $ | 733 | |||||||||||||
The Company does not have any assets or liabilities where the fair value is measured using significant unobservable inputs (Level 3). |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Schedule of outstanding interest rate derivatives designated as cash flow hedges | In March 2007, Level 3 Financing, Inc. entered into two interest rate swap agreements to hedge the interest payments on $1 billion principal amount of floating rate debt. The Company had designated these interest rate swap agreements as cash flow hedges. The hedge designation was terminated in 2012 in connection with certain refinancing activities, and the instruments were settled upon maturity in 2014. Prior to the redesignation of the hedging relationship in 2012, | ||||||||||||||
Schedule of fair value of derivative financial instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets (dollars in millions): | ||||||||||||||
Liability Derivatives | |||||||||||||||
31-Dec-13 | |||||||||||||||
Derivatives not designated as | Balance Sheet | Fair | |||||||||||||
hedging instruments | Location | Value | |||||||||||||
Interest rate swap agreements | Other current liabilities | $ | 12 | ||||||||||||
Schedule of the amount of gains (losses) recognized in Other Comprehensive Loss | The amount of net gains recognized in AOCI, including reclassifications of unrealized losses, consists of the following (dollars in millions): | ||||||||||||||
Year Ended December 31, | |||||||||||||||
Derivatives designated as hedging instruments | 2013 | 2012 | |||||||||||||
Cash flow hedging contracts | $ | — | $ | 90 | |||||||||||
Schedule of the amount of gains (losses) reclassified from AOCI to Income/Loss | The amount of losses reclassified from AOCI to earnings (effective portions) consists of the following (dollars in millions): | ||||||||||||||
Year Ended December 31, | |||||||||||||||
Derivatives designated as hedging instruments | Statement of Operations Location | 2013 | 2012 | ||||||||||||
Cash flow hedging contracts | Interest Expense | $ | — | $ | (26 | ) | |||||||||
Schedule of effect of derivatives not designated as hedging instruments on net loss | The effect of the Company’s derivatives not designated as hedging instruments on net loss is as follows (dollars in millions): | ||||||||||||||
Year Ended December 31, | |||||||||||||||
Derivatives not designated as hedging instruments | Statement of Operations Location | 2014 | 2013 | 2012 | |||||||||||
Interest rate swaps | Other Expense - Other, net | $ | — | $ | (2 | ) | $ | (64 | ) | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-term debt | |||||||||
Schedule of long-term debt | As of December 31, 2014 and December 31, 2013, long-term debt was as follows: | ||||||||
(dollars in millions) | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Senior Secured Term Loan* | $ | 4,611 | $ | 2,611 | |||||
Floating Rate Senior Notes due 2018 (3.826% as of December 31, 2014) | 300 | 300 | |||||||
11.875% Senior Notes due 2019 | — | 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 | — | |||||||
5.75% Senior Notes due 2022 | 600 | — | |||||||
7% Convertible Senior Notes due 2015 | 58 | 200 | |||||||
7% Convertible Senior Notes due 2015 Series B | 275 | 275 | |||||||
Capital Leases | 207 | 73 | |||||||
Other | — | 13 | |||||||
Total Debt Obligations | 11,366 | 8,392 | |||||||
Unamortized Discount: | |||||||||
Discount on Senior Secured Term Loan | (21 | ) | (7 | ) | |||||
Discount on 11.875% Senior Notes due 2019 | — | (8 | ) | ||||||
Discount on 9.375% Senior Notes due 2019 | (6 | ) | (7 | ) | |||||
Discount on 8.125% Senior Notes due 2019 | (6 | ) | (7 | ) | |||||
Discount on 7% Convertible Senior Notes due 2015 | — | (1 | ) | ||||||
Total Unamortized Discount | (33 | ) | (30 | ) | |||||
Carrying Value of Debt | 11,333 | 8,362 | |||||||
Less current portion | (349 | ) | (31 | ) | |||||
Long-term Debt, less current portion | $ | 10,984 | $ | 8,331 | |||||
*The $2 billion Tranche B Term Loan due 2022 had an interest rate of 4.5% as of December 31, 2014. 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 December 31, 2014. | |||||||||
Schedule of aggregate future contractual maturities of long-term debt and capital leases (excluding issue discounts and fair value adjustments) | ong-Term Debt Maturities | ||||||||
Aggregate future contractual maturities of long-term debt and capital leases (excluding discounts and fair value adjustments) were as follows as of December 31, 2014 (dollars in millions): | |||||||||
2015 | $ | 349 | |||||||
2016 | 9 | ||||||||
2017 | 8 | ||||||||
2018 | 308 | ||||||||
2019 | 2,823 | ||||||||
Thereafter | 7,869 | ||||||||
$ | 11,366 | ||||||||
Senior Notes 5.375percent Due 2022 [Member] | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | 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 on or prior to August 15, 2017, Level 3 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 Level 3 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 days nor more than 60 days’ prior notice. | |||||||||
Floating Rate Senior Notes due 2018 [Member] | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | Prior to May 15, 2015, at the option of Level 3 Financing, the 2018 Floating Rate Notes will be subject to redemption, 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, at 100% of the principal amount of 2018 Floating Rate Notes so redeemed plus (i) the applicable make-whole premium set forth in the Indenture, as of the redemption date and (ii) accrued and unpaid interest thereon (if any) up to, but not including, the redemption date. The 2018 Floating Rate Notes will be redeemable at the option of Level 3 Financing, in whole or in part, on or after May 15, 2015, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as percentages of the principal amount), plus accrued and unpaid interest thereon (if any) up to, but not including, the redemption date, if redeemed during the periods set forth below: | ||||||||
Period | Redemption Price | ||||||||
May 15, 2015 - May 14, 2016 | 102 | % | |||||||
May 15, 2016 - November 14, 2016 | 101 | % | |||||||
November 15, 2016 and thereafter | 100 | % | |||||||
In addition, at any time or from time to time on or prior to May 15, 2015, Level 3 Financing may redeem up to 35% of the original aggregate principal amount of the 2018 Floating Rate Notes at a redemption price equal to 100% of the principal amount of the 2018 Floating Rate Notes so redeemed, plus a premium equal to the interest rate per annum on the 2018 Floating Rate Notes in effect on the date that notice of redemption is given, plus accrued and unpaid interest thereon (if any) up to, but not including the redemption date, with the net cash proceeds contributed to the capital of Level 3 Financing from one or more private placements of common stock 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 65% of the original aggregate principal amount of the 2018 Floating Rate Notes must remain outstanding immediately after giving effect to such redemption. Any such redemption is required to be made within 90 days following such private placement or public offering upon not less than 30 nor more than 60 days prior notice. | |||||||||
Senior Notes due 2019 (9.375%) | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | The 9.375% Senior Notes Due 2019 are subject to redemption at the option of Level 3 Financing in whole or in part, at any time or from time to time, prior to April 1, 2015, at 100% of the principal amount of 9.375% 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 on or after April 1, 2015 at the redemption prices (expressed as a percentage of principal amount) set forth below, plus accrued and unpaid interest thereon to the redemption date, if redeemed during the twelve months beginning April 1, of the years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2015 | 104.688 | % | |||||||
2016 | 102.344 | % | |||||||
2017 | 100 | % | |||||||
Senior Notes due 2019 (8.125%) | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | The 8.125% Senior Notes will be 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 July 1, 2015, at 100% of the principal amount of 8.125% 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 on and after July 1, 2015, 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 July 1, of the years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2015 | 104.063 | % | |||||||
2016 | 102.031 | % | |||||||
2017 | 100 | % | |||||||
Senior Notes due 2019 (8.875%) | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | The 8.875% Senior Notes are subject to redemption at the option of Level 3 in whole or in part, at any time before June 1, 2015 at the redemption price equal to 100% of their principal amount, plus a make-whole premium and accrued and unpaid interest. On and after June 1, 2015, Level 3 may redeem all or part of the 8.875% Senior Notes, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve months beginning June 1, of the years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2015 | 104.438 | % | |||||||
2016 | 102.219 | % | |||||||
2017 | 100 | % | |||||||
In addition, at any time or from time to time on or prior to June 1, 2015, Level 3 may redeem up to 35% of the original aggregate principal amount of the 8.875% Senior Notes (including any additional 8.875% Senior Notes) at a redemption price equal to 108.875% of the principal amount of the 8.875% Senior Notes so redeemed, plus accrued and unpaid interest thereon (if any) to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), with the net cash proceeds contributed to the capital of Level 3 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 aggregate; provided, however, that at least 65% of the original aggregate principal amount of the 8.875% Senior Notes (including any additional 8.875% Senior Notes) would remain outstanding immediately after giving effect to such redemption. Any such redemption shall be made within 90 days of such private placement or public offering upon not less than 30 nor more than 60 days prior notice. | |||||||||
Senior Notes due 2020 (8.625%) | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | The 8.625% Senior Notes are subject to redemption at the option of Level 3 Financing in whole or in part, at any time before January 15, 2016 at the redemption price equal to 100% of their principal amount, plus a make-whole premium and accrued and unpaid interest. On and after January 15, 2016, Level 3 Financing may redeem all or part of the 8.625% Senior Notes, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve months beginning January 15, of the years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2016 | 104.313 | % | |||||||
2017 | 102.156 | % | |||||||
2018 | 100 | % | |||||||
Senior Notes due 2020 (7.0%) | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | The 7% Senior Notes are subject to redemption at the option of Level 3 Financing in whole or in part, at any time before June 1, 2016 at the redemption price equal to 100% of their principal amount, plus a make-whole premium and accrued and unpaid interest. On or after June 1, 2016, Level 3 Financing may redeem all or part of the 7% Senior Notes, upon not less than 30 nor more than 60 days prior notice, at the redemption prices set forth below (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve months beginning June 1, of the years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2016 | 103.5 | % | |||||||
2017 | 101.75 | % | |||||||
2018 | 100 | % | |||||||
In addition, at any time or from time to time on or prior to June 1, 2015, Level 3 Financing may redeem up to 35% of the original aggregate principal amount of the 7% Senior Notes (including any additional 7% Senior Notes) at a redemption price equal to 107% of the principal amount of the 7% Senior Notes so redeemed, plus accrued and unpaid interest thereon (if any) to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), with the net cash proceeds contributed to the capital of Level 3 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 aggregate; provided, however, that at least 65% of the original aggregate principal amount of the 7% Senior Notes (including any additional 7% Senior Notes) would remain outstanding immediately after giving effect to such redemption. Any such redemption shall be made within 90 days of such private placement or public offering upon not less than 30 nor more than 60 days prior notice. | |||||||||
SeniorNotes6Point125PercentDue2021 [Member] | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | Prior to November 15, 2016, at the option of Level 3 Financing, the 6.125% Senior Notes will be subject to redemption, 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, at 100% of the principal amount of 6.125% Senior Notes so redeemed plus (i) the applicable make-whole premium set forth in the Indenture, as of the redemption date and (ii) accrued and unpaid interest thereon (if any) up to, but not including, the redemption date. On and after November 15, 2016, at the option of Level 3 Financing, the 6.125% Senior Notes will be subject to redemption, 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 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. The redemption price for the 6.125% Senior Notes if redeemed during the twelve months beginning November 15, of the years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2016 | 103.063 | % | |||||||
2017 | 101.531 | % | |||||||
2018 | 100 | % | |||||||
In addition, at any time or from time to time on or prior to November 15, 2016, Level 3 Financing may redeem up to 35% of the original aggregate principal amount of the 6.125% Senior Notes at a redemption price equal to 106.125% of the principal amount of the 6.125% 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 the capital of Level 3 Financing from one or more private placements of common stock 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 65% of the original aggregate principal amount of the 6.125% Senior Notes must remain outstanding immediately after giving effect to such redemption. Any such redemption is required to be made within 90 days following such private placement or public offering upon not less than 30 nor more than 60 days prior notice. | |||||||||
Senior Notes 5point75Percent Due 2022 [Member] | |||||||||
Long-term debt | |||||||||
Schedule of redemption prices of Senior Notes | The 5.75% Senior Notes will be subject to redemption at the option of Level 3, 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 December 1, 2017 at 100% of the principal amount of 5.75% 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 December 1, 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. The redemption price for the 5.75% Senior Notes if redeemed during the twelve months beginning December 1, of years indicated below: | ||||||||
Year | Redemption Price | ||||||||
2017 | 102.875 | % | |||||||
2018 | 101.4375 | % | |||||||
2019 and thereafter | 100 | % | |||||||
At any time or from time to time on or prior to December 1, 2017, Level 3 may redeem up to 40% of the original aggregate principal amount of the 5.75% Senior Notes at a redemption price equal to 105.75% of the principal amount of the 5.75% 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 the capital of Level 3 from one or more private placements of Level 3 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 5.75% 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. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The accumulated balances for each classification of other comprehensive income (loss) are as follows: | ||||||||||||||||
(dollars in millions) | Net Foreign Currency Translation Adjustment | Holding Gain (Loss) on Interest Rate Swaps | Defined Benefit Pension Plans | Total | |||||||||||||
Balance at January 1, 2012 | $ | 39 | $ | (90 | ) | $ | (29 | ) | $ | (80 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 17 | 25 | (4 | ) | 38 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 65 | 3 | 68 | |||||||||||||
Balance at December 31, 2012 | 56 | — | (30 | ) | 26 | ||||||||||||
Other comprehensive income (loss) before reclassifications | 11 | — | (3 | ) | 8 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 2 | 2 | |||||||||||||
Balance at December 31, 2013 | 67 | — | (31 | ) | 36 | ||||||||||||
Other comprehensive income (loss) before reclassifications | (178 | ) | — | (9 | ) | (187 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 4 | 4 | |||||||||||||
Balance at December 31, 2014 | $ | (111 | ) | $ | — | $ | (36 | ) | $ | (147 | ) | ||||||
Employee_Benefit_Benefits_and_1
Employee Benefit Benefits and Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||||||||||||
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 each of the three years ended December 31, 2014, 2013 and 2012 (dollars in millions): | ||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
OSOs | $ | 8 | $ | 21 | $ | 14 | |||||||||||||||||
Restricted Stock Units | 34 | 38 | 40 | ||||||||||||||||||||
Performance Restricted Stock Units | 14 | — | — | ||||||||||||||||||||
401(k) Match Expense | 23 | 24 | 23 | ||||||||||||||||||||
Restricted Stock Unit Bonus Grant | (5 | ) | 59 | 46 | |||||||||||||||||||
Management Incentive and Retention Plan | — | 10 | 13 | ||||||||||||||||||||
74 | 152 | 136 | |||||||||||||||||||||
Capitalized Non-Cash Compensation | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||
$ | 73 | $ | 151 | $ | 135 | ||||||||||||||||||
Schedule of performance benchmark | ility to outperform the market in general, as measured by the Standard & Poor's ("S&P") 500® Index. Participants in the OSO program do not realize any value from awards unless the Company's common stock price outperforms the S&P 500® Index duri | ||||||||||||||||||||||
Schedule of OSO valuation assumptions | The Company believes that given the relative short life of the OSOs and the other variables used in the model, the modified Black-Scholes model provides a reasonable estimate of the fair value of the OSO units at the time of grant. | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
S&P 500 Expected Dividend Yield Rate | 2.24% | 2.05% | |||||||||||||||||||||
Expected Life | 3 years | 3 years | |||||||||||||||||||||
S&P 500 Expected Volatility Rate | 19% | 23% | |||||||||||||||||||||
Level 3 Common Stock Expected Volatility Rate | 39% | 39% | |||||||||||||||||||||
Expected S&P 500 Correlation Factor | 0.44 | 0.32 | |||||||||||||||||||||
Calculated Theoretical Value | 101% | 110% | |||||||||||||||||||||
Estimated Forfeiture Rate | 15% | 20% | |||||||||||||||||||||
Schedule of restricted stock and restricted stock units | The changes in nonvested restricted stock, restricted stock units and nonvested performance restricted stock units are shown in the following table: | ||||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Nonvested at January 1, 2012 | 2,030,783 | $ | 26.25 | ||||||||||||||||||||
Stock and units granted | 2,869,584 | $ | 24.13 | ||||||||||||||||||||
Lapse of restrictions | (1,048,757 | ) | $ | 26.06 | |||||||||||||||||||
Stock and units forfeited | (214,634 | ) | $ | 24.92 | |||||||||||||||||||
Nonvested at December 31, 2012 | 3,636,976 | $ | 24.71 | ||||||||||||||||||||
Stock and units granted | 1,617,592 | $ | 21.26 | ||||||||||||||||||||
Lapse of restrictions | (1,841,757 | ) | $ | 25.19 | |||||||||||||||||||
Stock and units forfeited | (488,461 | ) | $ | 23.1 | |||||||||||||||||||
Nonvested at December 31, 2013 | 2,924,350 | $ | 22.77 | ||||||||||||||||||||
Stock and units granted | 2,255,883 | $ | 42.36 | ||||||||||||||||||||
Lapse of restrictions | (1,151,830 | ) | $ | 22.94 | |||||||||||||||||||
Stock and units forfeited | (241,785 | ) | $ | 28.9 | |||||||||||||||||||
Nonvested at December 31, 2014 | 3,786,618 | $ | 33.91 | ||||||||||||||||||||
Schedule OSO activity | Transactions involving OSO units awarded are summarized in the table below. The Option Price Per Unit identified in the table below represents the initial strike price, as determined on the day prior to the OSO grant date for those grants. | ||||||||||||||||||||||
Units | Initial Strike Price Per Unit | Weighted | Aggregate | Weighted | |||||||||||||||||||
Average | Intrinsic | Average | |||||||||||||||||||||
Initial | Value | Remaining | |||||||||||||||||||||
Strike | Contractual | ||||||||||||||||||||||
Price | Term (years) | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance January 1, 2012 | 1,288,712 | $ | 10.5 | - | $ | 36.6 | $ | 20.51 | $ | 1.8 | 1.53 | ||||||||||||
OSOs granted | 1,195,452 | $ | 16.99 | - | $ | 27.53 | $ | 24.65 | |||||||||||||||
OSOs forfeited | (72,335 | ) | $ | 12 | - | $ | 36.6 | $ | 21.8 | ||||||||||||||
OSOs expired | (278,111 | ) | $ | 15 | - | $ | 22.65 | $ | 18.45 | ||||||||||||||
OSOs exercised | (67,299 | ) | $ | 10.5 | - | $ | 13.8 | $ | 12.48 | ||||||||||||||
Balance December 31, 2012 | 2,066,419 | $ | 14.1 | - | $ | 36.6 | $ | 23.4 | $ | 6.6 | 1.73 | ||||||||||||
OSOs granted | 748,481 | $ | 20.29 | - | $ | 26.69 | $ | 22.64 | |||||||||||||||
OSOs forfeited | (271,883 | ) | $ | 14.1 | - | $ | 36.6 | $ | 22.33 | ||||||||||||||
OSOs expired | (286,924 | ) | $ | 16.35 | - | $ | 24.3 | $ | 21.48 | ||||||||||||||
OSOs exercised | (107,228 | ) | $ | 14.1 | - | $ | 14.1 | $ | 14.1 | ||||||||||||||
Balance December 31, 2013 | 2,148,865 | $ | 14.1 | - | $ | 36.6 | $ | 23.99 | $ | 31.6 | 1.46 | ||||||||||||
OSOs granted | — | $ | — | - | $ | — | $ | — | |||||||||||||||
OSOs forfeited | (52,901 | ) | $ | 16.99 | - | $ | 27.53 | $ | 22.99 | ||||||||||||||
OSOs expired | (106,844 | ) | $ | 36.6 | - | $ | 36.6 | $ | 36.6 | ||||||||||||||
OSOs exercised | (771,251 | ) | $ | 14.7 | - | $ | 27.53 | $ | 24.26 | ||||||||||||||
Balance December 31, 2014 | 1,217,869 | $ | 16.99 | - | $ | 27.53 | $ | 22.76 | $ | 88 | 0.9 | ||||||||||||
Schedule of OSO by exercise price range | |||||||||||||||||||||||
OSO Units Outstanding | OSO units Exercisable | ||||||||||||||||||||||
at December 31, 2014 | at December 31, 2014 | ||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||
Remaining | Initial | Initial | |||||||||||||||||||||
Life (years) | Strike Price | Strike Price | |||||||||||||||||||||
$ | 16.99 | - | $ | 27.53 | 1,217,869 | 0.9 | $ | 22.76 | — | $ | — | ||||||||||||
Management Incentive and Retention Plan | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||||||||||||
Schedule of restricted stock and restricted stock units | A summary of the retention restricted stock units granted under the MIRP is shown in the following table: | ||||||||||||||||||||||
Number | Weighted Average | ||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||
Nonvested at January 1, 2012 | — | $ | — | ||||||||||||||||||||
Stock and units granted | 465,000 | $ | 25.92 | ||||||||||||||||||||
Lapse of restrictions | — | $ | — | ||||||||||||||||||||
Stock and units forfeited | — | $ | — | ||||||||||||||||||||
Nonvested at December 31, 2012 | 465,000 | $ | 25.92 | ||||||||||||||||||||
Stock and units granted | — | $ | — | ||||||||||||||||||||
Lapse of restrictions | (270,000 | ) | $ | 25.92 | |||||||||||||||||||
Stock and units forfeited | — | $ | — | ||||||||||||||||||||
Nonvested at December 31, 2013 | 195,000 | $ | 25.92 | ||||||||||||||||||||
Stock and units granted | — | ||||||||||||||||||||||
Lapse of restrictions | (195,000 | ) | $ | 25.92 | |||||||||||||||||||
Stock and units forfeited | — | ||||||||||||||||||||||
Nonvested at December 31, 2014 | — | ||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of income tax expense (benefit) | The following table summarizes the income tax benefit (provision) attributable to the income (loss) before income taxes for each of the three years ended December 31, 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in millions) | |||||||||||||
Current: | |||||||||||||
United States federal | $ | — | $ | 9 | $ | — | |||||||
State | (1 | ) | (1 | ) | (2 | ) | |||||||
Foreign | (40 | ) | (37 | ) | (36 | ) | |||||||
(41 | ) | (29 | ) | (38 | ) | ||||||||
Deferred, net of changes in valuation allowances: | |||||||||||||
United States federal | 6 | (3 | ) | (3 | ) | ||||||||
State | 15 | — | — | ||||||||||
Foreign | 96 | (6 | ) | (7 | ) | ||||||||
Income tax benefit (provision) | $ | 76 | $ | (38 | ) | $ | (48 | ) | |||||
Schedule of income before income tax, domestic and foreign | The United States and Foreign components of income (loss) before income taxes for each of the three years ended December 31, 2014, 2013 and 2012 are as follows (some of the income (loss) is subject to taxation in multiple jurisdictions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in millions) | |||||||||||||
United States | $ | 207 | $ | (122 | ) | $ | (434 | ) | |||||
Foreign | 31 | 51 | 60 | ||||||||||
$ | 238 | $ | (71 | ) | $ | (374 | ) | ||||||
Schedule of effective income tax rate reconciliation | A reconciliation of the actual income tax benefit (provision) and the tax computed by applying the U.S. federal rate (35%) to the income (loss) before income taxes for each of the three years ended December 31, 2014, 2013 and 2012 is shown in the following table: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in millions) | |||||||||||||
Computed tax (provision) benefit at statutory rate | $ | (83 | ) | $ | 25 | $ | 131 | ||||||
Effect of earnings in jurisdictions outside of US | 13 | 12 | 25 | ||||||||||
Change in valuation allowance | 197 | (27 | ) | (145 | ) | ||||||||
Permanent items | (44 | ) | (44 | ) | (48 | ) | |||||||
Indefinite-lived assets | 2 | (3 | ) | (3 | ) | ||||||||
Uncertain tax positions | 3 | 9 | (3 | ) | |||||||||
Changes in tax rates | (7 | ) | (7 | ) | (4 | ) | |||||||
Other, net | (5 | ) | (3 | ) | (1 | ) | |||||||
Income tax benefit (provision) | $ | 76 | $ | (38 | ) | $ | (48 | ) | |||||
Deferred tax assets and liabilities | The components of the net deferred tax assets (liabilities) as of December 31, 2014 and 2013 are as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
(dollars in millions) | |||||||||||||
Deferred Tax Assets: | |||||||||||||
Accrued payroll and related benefits | $ | 113 | $ | 132 | |||||||||
Deferred revenue | 322 | 336 | |||||||||||
Unutilized tax net operating loss carry forwards | 5,218 | 4,791 | |||||||||||
Fixed assets and intangible assets | 90 | 102 | |||||||||||
Intercompany loss | 128 | 139 | |||||||||||
Other | 174 | 144 | |||||||||||
Total Deferred Tax Assets | 6,045 | 5,644 | |||||||||||
Deferred Tax Liabilities: | |||||||||||||
Fixed assets and intangible assets | (1,371 | ) | (790 | ) | |||||||||
Deferred revenue | (73 | ) | (76 | ) | |||||||||
Other | (59 | ) | (33 | ) | |||||||||
Foreign branch income | (130 | ) | (163 | ) | |||||||||
Total Deferred Tax Liabilities | (1,633 | ) | (1,062 | ) | |||||||||
Net Deferred Tax Assets before valuation allowance | 4,412 | 4,582 | |||||||||||
Valuation Allowance | (4,437 | ) | (4,698 | ) | |||||||||
Net Deferred Tax Liability after Valuation Allowance | $ | (25 | ) | $ | (116 | ) | |||||||
Balance sheet classification of deferred taxes: | |||||||||||||
Net current deferred income tax asset | $ | 8 | $ | 9 | |||||||||
Net current deferred income tax liability | — | (2 | ) | ||||||||||
Net non-current deferred income tax asset | 292 | 211 | |||||||||||
Net non-current deferred income tax liability | (325 | ) | (334 | ) | |||||||||
Net Deferred Tax Liability after Valuation Allowance | $ | (25 | ) | $ | (116 | ) | |||||||
Operating loss carryforwards | As of December 31, 2014, the Company had net operating loss carry forwards of approximately $10.3 billion (net of IRC Section 382 limitation) for U.S. federal income tax purposes, including $1 billion from the tw telecom acquisition. Although the tw telecom acquisition triggered an ownership change under Section 382 of the Internal Revenue Code, the Company has determined that its loss carryforwards should not be mathematically limited based on its value at the time of the ownership change and the expiration dates of its net operating losses. | ||||||||||||
The Company’s loss carry forwards expire in future years through 2034 and are subject to examination by the tax authorities until three years after the carry forwards are utilized. The U.S. federal tax loss carry forwards expire as follows (dollars in millions): | |||||||||||||
Expiring December 31, | Amount | ||||||||||||
2022 | $ | 186 | |||||||||||
2023 | 380 | ||||||||||||
2024 | 1,456 | ||||||||||||
2025 | 1,299 | ||||||||||||
2026 | 1,244 | ||||||||||||
2027 | 1,615 | ||||||||||||
2028 | 482 | ||||||||||||
2029 | 694 | ||||||||||||
2030 | 664 | ||||||||||||
2031 | 827 | ||||||||||||
2032 | 730 | ||||||||||||
2033 | 289 | ||||||||||||
2034 | 438 | ||||||||||||
$ | 10,304 | ||||||||||||
Uncertain tax benefits | A reconciliation of the beginning and ending balance of unrecognized income tax benefits follows (dollars in millions): | ||||||||||||
Amount | |||||||||||||
Balance as of January 1, 2012 | $ | 15 | |||||||||||
Gross increases - tax positions of prior years | 4 | ||||||||||||
Gross increases - tax positions during 2012 | 1 | ||||||||||||
Gross decreases - lapse of statute of limitations | (1 | ) | |||||||||||
Gross decreases - settlement with taxing authorities | (1 | ) | |||||||||||
Balance as of December 31, 2012 | 18 | ||||||||||||
Gross increases - tax positions of prior years | — | ||||||||||||
Gross increases - tax positions during 2013 | 1 | ||||||||||||
Gross decreases - lapse of statute of limitations | (6 | ) | |||||||||||
Gross decreases - settlement with taxing authorities | — | ||||||||||||
Balance as of December 31, 2013 | 13 | ||||||||||||
Tax positions of prior years netted against deferred tax assets | 5 | ||||||||||||
Gross increases - tax positions of prior years | 1 | ||||||||||||
Gross increases - tax positions during 2014 | — | ||||||||||||
Gross decreases - lapse of statute of limitations | (2 | ) | |||||||||||
Gross decreases - settlement with taxing authorities | — | ||||||||||||
Balance as of December 31, 2014 | $ | 17 | |||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The following table presents revenue by segment for each of the years ended December 31, | ||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Core Network Services Revenue: | |||||||||||||
North America | $ | 4,240 | $ | 3,949 | $ | 3,840 | |||||||
EMEA | 891 | 888 | 911 | ||||||||||
Latin America | 779 | 754 | 712 | ||||||||||
tw telecom | 285 | — | — | ||||||||||
Total Core Network Services Revenue | $ | 6,195 | $ | 5,591 | $ | 5,463 | |||||||
Wholesale Voice Services and Other Revenue: | |||||||||||||
North America | $ | 530 | $ | 681 | $ | 863 | |||||||
EMEA | 19 | 31 | 40 | ||||||||||
Latin America | 33 | 10 | 10 | ||||||||||
Total Wholesale Voice Services and Other Revenue | $ | 582 | $ | 722 | $ | 913 | |||||||
Total Consolidated Revenue | $ | 6,777 | $ | 6,313 | $ | 6,376 | |||||||
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 net income (loss) for each of the years ended December 31, | ||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Adjusted EBITDA: | |||||||||||||
North America | $ | 1,960 | $ | 1,799 | $ | 1,708 | |||||||
EMEA | 214 | 226 | 195 | ||||||||||
Latin America | 348 | 313 | 278 | ||||||||||
tw telecom | 105 | — | — | ||||||||||
Unallocated Corporate Expenses | (732 | ) | (714 | ) | (722 | ) | |||||||
Consolidated Adjusted EBITDA | $ | 1,895 | $ | 1,624 | $ | 1,459 | |||||||
Income Tax Benefit (Expense) | 76 | (38 | ) | (48 | ) | ||||||||
Total Other Expense | (775 | ) | (737 | ) | (949 | ) | |||||||
Depreciation and Amortization | (808 | ) | (800 | ) | (749 | ) | |||||||
Non-Cash Stock Compensation | (73 | ) | (151 | ) | (135 | ) | |||||||
Non-Cash Impairment | (1 | ) | (7 | ) | — | ||||||||
Total Consolidated Net Income (Loss) | $ | 314 | $ | (109 | ) | $ | (422 | ) | |||||
Summary of segment information | The following table presents capital expenditures by segment and reconciles capital expenditures to consolidated capital expenditures for each of the years ended December 31: | ||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Capital Expenditures: | |||||||||||||
North America | $ | 432 | $ | 398 | $ | 407 | |||||||
EMEA | 117 | 128 | 115 | ||||||||||
Latin America | 153 | 134 | 122 | ||||||||||
tw telecom | 63 | — | — | ||||||||||
Unallocated Corporate Capital Expenditures | 145 | 100 | 99 | ||||||||||
Consolidated Capital Expenditures | $ | 910 | $ | 760 | $ | 743 | |||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | The following table presents total assets by segment: | ||||||||||||
As of December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
North America | $ | 8,082 | $ | 8,133 | |||||||||
EMEA | 1,970 | 2,030 | |||||||||||
Latin America | 2,451 | 2,445 | |||||||||||
tw telecom | 8,160 | — | |||||||||||
Other | 284 | 266 | |||||||||||
Total Consolidated Assets | $ | 20,947 | $ | 12,874 | |||||||||
Commitments_Contingencies_and_1
Commitments, Contingencies and Other Items (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Operating Leases, Future Minimum Payments Due and Unrecorded Unconditional Purchase Obligation | Future minimum payments for the next five years and thereafter under network and related right-of-way agreements and non-cancelable operating leases for facilities and other assets consist of the following as of December 31, 2014 (dollars in millions): | ||||||||||||||||||||
Right-of-Way | Facilities and Other Assets | Total | Future Minimum Sublease Receipts | ||||||||||||||||||
Agreements | |||||||||||||||||||||
2015 | $ | 118 | $ | 302 | $ | 420 | $ | 5 | |||||||||||||
2016 | 58 | 244 | 302 | 4 | |||||||||||||||||
2017 | 53 | 207 | 260 | 4 | |||||||||||||||||
2018 | 51 | 174 | 225 | 1 | |||||||||||||||||
2019 | 42 | 142 | 184 | 1 | |||||||||||||||||
Thereafter | 315 | 655 | 970 | — | |||||||||||||||||
$ | 637 | $ | 1,724 | $ | 2,361 | $ | 15 | ||||||||||||||
Schedule of long-term purchase commitments | The following table summarizes the Company's purchase commitments at December 31, 2014 (dollars in millions): | ||||||||||||||||||||
Total | Less than | 2 - 3 | 4 - 5 | After 5 | |||||||||||||||||
1 Year | Years | Years | Years | ||||||||||||||||||
Cost of Access Services | $ | 710 | $ | 378 | $ | 262 | $ | 51 | $ | 19 | |||||||||||
Third-Party Maintenance Services | 329 | 67 | 55 | 51 | 156 | ||||||||||||||||
$ | 1,039 | $ | 445 | $ | 317 | $ | 102 | $ | 175 | ||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ||||||||||||||||||||||||
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations | |||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 3,073 | $ | 3,918 | $ | (214 | ) | $ | 6,777 | |||||||||||
Costs and Expenses: | ||||||||||||||||||||||||
Network Access Costs | — | — | 1,177 | 1,566 | (214 | ) | 2,529 | |||||||||||||||||
Network Related Expenses | — | — | 762 | 484 | — | 1,246 | ||||||||||||||||||
Depreciation and Amortization | — | — | 277 | 531 | — | 808 | ||||||||||||||||||
Selling, General and Administrative Expenses | 21 | 2 | 735 | 423 | — | 1,181 | ||||||||||||||||||
Total Costs and Expenses | 21 | 2 | 2,951 | 3,004 | (214 | ) | 5,764 | |||||||||||||||||
Operating Income (Loss) | (21 | ) | (2 | ) | 122 | 914 | — | 1,013 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | 1 | — | 1 | ||||||||||||||||||
Interest expense | (143 | ) | (492 | ) | (2 | ) | (17 | ) | — | (654 | ) | |||||||||||||
Interest income (expense) affiliates, net | 1,227 | 1,827 | (2,890 | ) | (164 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (710 | ) | (2,047 | ) | 663 | — | 2,094 | — | ||||||||||||||||
Other, net | (53 | ) | — | 7 | (76 | ) | — | (122 | ) | |||||||||||||||
Total Other Expense | 321 | (712 | ) | (2,222 | ) | (256 | ) | 2,094 | (775 | ) | ||||||||||||||
Income (Loss) before Income Taxes | 300 | (714 | ) | (2,100 | ) | 658 | 2,094 | 238 | ||||||||||||||||
Income Tax Expense | 14 | 4 | (1 | ) | 59 | — | 76 | |||||||||||||||||
Net Income (Loss) | 314 | (710 | ) | (2,101 | ) | 717 | 2,094 | 314 | ||||||||||||||||
Other Comprehensive Loss, Net of Income Taxes | (183 | ) | — | — | (183 | ) | 183 | (183 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | 131 | $ | (710 | ) | $ | (2,101 | ) | $ | 534 | $ | 2,277 | $ | 131 | ||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||
For the year ended December 31, 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 | $ | — | $ | — | $ | 2,825 | $ | 3,734 | $ | (246 | ) | $ | 6,313 | |||||||||||
Costs and Expenses: | ||||||||||||||||||||||||
Network Access Costs | — | — | 1,068 | 1,649 | (246 | ) | 2,471 | |||||||||||||||||
Network Related Expenses | — | — | 753 | 461 | — | 1,214 | ||||||||||||||||||
Depreciation and Amortization | — | — | 289 | 511 | — | 800 | ||||||||||||||||||
Selling, General and Administrative Expenses | 3 | 1 | 791 | 367 | — | 1,162 | ||||||||||||||||||
Total Costs and Expenses | 3 | 1 | 2,901 | 2,988 | (246 | ) | 5,647 | |||||||||||||||||
Operating Income (Loss) | (3 | ) | (1 | ) | (76 | ) | 746 | — | 666 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | ||||||||||||||||||
Interest expense | (151 | ) | (497 | ) | (3 | ) | 2 | — | (649 | ) | ||||||||||||||
Interest income (expense) affiliates, net | 1,091 | 1,706 | (2,679 | ) | (118 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (1,039 | ) | (2,164 | ) | 550 | — | 2,653 | — | ||||||||||||||||
Other, net | — | (85 | ) | 4 | (7 | ) | — | (88 | ) | |||||||||||||||
Total Other Expense | (99 | ) | (1,040 | ) | (2,128 | ) | (123 | ) | 2,653 | (737 | ) | |||||||||||||
Income (Loss) before Income Taxes | (102 | ) | (1,041 | ) | (2,204 | ) | 623 | 2,653 | (71 | ) | ||||||||||||||
Income Tax Expense | (7 | ) | 2 | — | (33 | ) | — | (38 | ) | |||||||||||||||
Net Income (Loss) | (109 | ) | (1,039 | ) | (2,204 | ) | 590 | 2,653 | (109 | ) | ||||||||||||||
Other Comprehensive Income, Net of Income Taxes | 10 | 10 | — | 10 | (20 | ) | 10 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (99 | ) | $ | (1,029 | ) | $ | (2,204 | ) | $ | 600 | $ | 2,633 | $ | (99 | ) | ||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||
For the year ended December 31, 2012 (as revised) | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,657 | $ | 3,975 | $ | (256 | ) | $ | 6,376 | |||||||||||
Costs and Expenses: | ||||||||||||||||||||||||
Network Access Costs | — | — | 996 | 1,854 | (248 | ) | 2,602 | |||||||||||||||||
Network Related Expenses | — | — | 741 | 508 | — | 1,249 | ||||||||||||||||||
Depreciation and Amortization | — | — | 260 | 489 | — | 749 | ||||||||||||||||||
Selling, General and Administrative Expenses | 2 | 1 | 818 | 388 | (8 | ) | 1,201 | |||||||||||||||||
Total Costs and Expenses | 2 | 1 | 2,815 | 3,239 | (256 | ) | 5,801 | |||||||||||||||||
Operating Income (Loss) | (2 | ) | (1 | ) | (158 | ) | 736 | — | 575 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Interest expense | (168 | ) | (535 | ) | (3 | ) | (27 | ) | — | (733 | ) | |||||||||||||
Interest income (expense) affiliates, net | 976 | 1,598 | (2,233 | ) | (341 | ) | — | — | ||||||||||||||||
Equity in net earnings (losses) of subsidiaries | (1,188 | ) | (2,066 | ) | 92 | — | 3,162 | — | ||||||||||||||||
Other, net | (39 | ) | (184 | ) | 6 | (1 | ) | — | (218 | ) | ||||||||||||||
Total Other Expense | (419 | ) | (1,187 | ) | (2,137 | ) | (368 | ) | 3,162 | (949 | ) | |||||||||||||
Income (Loss) before Income Taxes | (421 | ) | (1,188 | ) | (2,295 | ) | 368 | 3,162 | (374 | ) | ||||||||||||||
Income Tax Expense | (1 | ) | — | (4 | ) | (43 | ) | — | (48 | ) | ||||||||||||||
Net Income (Loss) | (422 | ) | (1,188 | ) | (2,299 | ) | 325 | 3,162 | (422 | ) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Income Taxes | 106 | 106 | — | 16 | (122 | ) | 106 | |||||||||||||||||
Comprehensive Income (Loss) | $ | (316 | ) | $ | (1,082 | ) | $ | (2,299 | ) | $ | 341 | $ | 3,040 | $ | (316 | ) | ||||||||
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
December 31, 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 | $ | 307 | $ | 261 | $ | — | $ | 580 | ||||||||||||
Restricted cash and securities | — | — | 1 | 6 | — | 7 | ||||||||||||||||||
Receivables, less allowances for doubtful accounts | — | — | 34 | 703 | — | 737 | ||||||||||||||||||
Due from affiliates | 14,522 | 21,270 | — | — | (35,792 | ) | — | |||||||||||||||||
Other | 2 | 21 | 45 | 97 | — | 165 | ||||||||||||||||||
Total Current Assets | 14,531 | 21,296 | 387 | 1,067 | (35,792 | ) | 1,489 | |||||||||||||||||
Property, plant, and equipment, net | — | — | 3,152 | 6,708 | — | 9,860 | ||||||||||||||||||
Restricted cash and securities | 3 | — | 16 | 1 | — | 20 | ||||||||||||||||||
Goodwill and other intangibles, net | — | — | 373 | 8,730 | — | 9,103 | ||||||||||||||||||
Investment in subsidiaries | 16,686 | 14,777 | 3,729 | — | (35,192 | ) | — | |||||||||||||||||
Other assets, net | 28 | 129 | 9 | 309 | — | 475 | ||||||||||||||||||
Total Assets | $ | 31,248 | $ | 36,202 | $ | 7,666 | $ | 16,815 | $ | (70,984 | ) | $ | 20,947 | |||||||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 215 | $ | 449 | $ | — | $ | 664 | ||||||||||||
Current portion of long-term debt | 333 | — | 3 | 13 | — | 349 | ||||||||||||||||||
Accrued payroll and employee benefits | — | — | 174 | 99 | — | 273 | ||||||||||||||||||
Accrued interest | 12 | 158 | — | 4 | — | 174 | ||||||||||||||||||
Current portion of deferred revenue | — | — | 118 | 169 | — | 287 | ||||||||||||||||||
Due to affiliates | — | — | 34,401 | 1,391 | (35,792 | ) | — | |||||||||||||||||
Other | — | 2 | 62 | 103 | — | 167 | ||||||||||||||||||
Total Current Liabilities | 345 | 160 | 34,973 | 2,228 | (35,792 | ) | 1,914 | |||||||||||||||||
Long-term debt, less current portion | 900 | 9,893 | 16 | 175 | — | 10,984 | ||||||||||||||||||
Deferred revenue, less current portion | — | — | 617 | 304 | — | 921 | ||||||||||||||||||
Other liabilities | 16 | 24 | 125 | 600 | — | 765 | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||
Stockholders' Equity (Deficit) | 29,987 | 26,125 | (28,065 | ) | 13,508 | (35,192 | ) | 6,363 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 31,248 | $ | 36,202 | $ | 7,666 | $ | 16,815 | $ | (70,984 | ) | $ | 20,947 | |||||||||||
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 | |||||||||||||||||||||||
For the year ended December 31, 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 | $ | (178 | ) | $ | (458 | ) | $ | 625 | $ | 1,172 | $ | — | $ | 1,161 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital expenditures | — | — | (362 | ) | (548 | ) | — | (910 | ) | |||||||||||||||
Change in restricted cash and securities, net | — | — | 2 | (12 | ) | — | (10 | ) | ||||||||||||||||
Proceeds from sale of property, plant and equipment and other assets | — | — | — | 3 | — | 3 | ||||||||||||||||||
Investment in tw telecom, net of cash acquired | (474 | ) | — | — | 307 | — | (167 | ) | ||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | (474 | ) | — | (360 | ) | (252 | ) | — | (1,086 | ) | ||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 590 | — | — | (1 | ) | — | 589 | |||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (647 | ) | — | — | (24 | ) | — | (671 | ) | |||||||||||||||
Increase (decrease) due from/to affiliates, net | 708 | 457 | (305 | ) | (860 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 651 | 457 | (305 | ) | (885 | ) | — | (82 | ) | |||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (44 | ) | — | (44 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (1 | ) | (1 | ) | (40 | ) | (9 | ) | — | (51 | ) | |||||||||||||
Cash and Cash Equivalents at Beginning of Year | 8 | 6 | 347 | 270 | — | 631 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 7 | $ | 5 | $ | 307 | $ | 261 | $ | — | $ | 580 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (169 | ) | $ | (557 | ) | $ | 710 | $ | 729 | $ | — | $ | 713 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital expenditures | — | — | (312 | ) | (448 | ) | — | (760 | ) | |||||||||||||||
Change in restricted cash and securities, net | 9 | — | (1 | ) | 5 | — | 13 | |||||||||||||||||
Other | — | — | 1 | 1 | — | 2 | ||||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 9 | — | (312 | ) | (442 | ) | — | (745 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | — | 1,502 | — | — | — | 1,502 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | (173 | ) | (1,586 | ) | (4 | ) | (33 | ) | — | (1,796 | ) | |||||||||||||
Increase (decrease) due from/to affiliates, net | 88 | 642 | (433 | ) | (297 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (85 | ) | 558 | (437 | ) | (330 | ) | — | (294 | ) | ||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | (22 | ) | — | (22 | ) | ||||||||||||||||
Net Change in Cash and Cash Equivalents | (245 | ) | 1 | (39 | ) | (65 | ) | — | (348 | ) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 253 | 5 | 386 | 335 | — | 979 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 8 | $ | 6 | $ | 347 | $ | 270 | $ | — | $ | 631 | ||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
Level 3 Communications, Inc. | Level 3 Financing, Inc. | Level 3 Communications, LLC | Other Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities of Continuing Operations | $ | (165 | ) | $ | (520 | ) | $ | 140 | $ | 1,123 | $ | — | $ | 578 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital expenditures | — | — | (276 | ) | (467 | ) | — | (743 | ) | |||||||||||||||
Change in restricted cash and securities, net | 6 | — | 2 | 12 | — | 20 | ||||||||||||||||||
Other | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net Cash Used in Investing Activities of Continuing Operations | 6 | — | (274 | ) | (457 | ) | — | (725 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Long-term debt borrowings, net of issuance costs | 293 | 4,211 | — | — | — | 4,504 | ||||||||||||||||||
Payments on and repurchases of long-term debt, including current portion and refinancing costs | — | (4,161 | ) | — | (141 | ) | — | (4,302 | ) | |||||||||||||||
Proceeds from stock options exercised | 5 | — | — | — | — | 5 | ||||||||||||||||||
Increase (decrease) due from affiliates, net | 112 | 469 | (98 | ) | (483 | ) | — | — | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities of Continuing Operations | 410 | 519 | (98 | ) | (624 | ) | — | 207 | ||||||||||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net Change in Cash and Cash Equivalents | 251 | (1 | ) | (232 | ) | 43 | — | 61 | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 2 | 6 | 618 | 292 | — | 918 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 253 | $ | 5 | $ | 386 | $ | 335 | $ | — | $ | 979 | ||||||||||||
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Data | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(as revised) | (as revised) | (as revised) | (as revised) | ||||||||||||||||||||||||||||||
(dollars in millions except per share data) | |||||||||||||||||||||||||||||||||
Revenue | $ | 1,609 | $ | 1,577 | $ | 1,625 | $ | 1,565 | $ | 1,629 | $ | 1,569 | $ | 1,914 | $ | 1,602 | |||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||
Network Access Costs | 614 | 629 | 613 | 616 | 607 | 608 | 695 | 618 | |||||||||||||||||||||||||
Network Related Expenses | 292 | 302 | 302 | 300 | 307 | 314 | 345 | 298 | |||||||||||||||||||||||||
Depreciation and Amortization | 184 | 194 | 187 | 199 | 187 | 203 | 250 | 204 | |||||||||||||||||||||||||
Selling, General and Administrative Expenses | 255 | 297 | 267 | 310 | 266 | 292 | 393 | 263 | |||||||||||||||||||||||||
Total Costs and Expenses | 1,345 | 1,422 | 1,369 | 1,425 | 1,367 | 1,417 | 1,683 | 1,383 | |||||||||||||||||||||||||
Operating Income | 264 | 155 | 256 | 140 | 262 | 152 | 231 | 219 | |||||||||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||||||||||||
Interest Income | — | — | — | — | 1 | — | — | — | |||||||||||||||||||||||||
Interest expense | (151 | ) | (169 | ) | (149 | ) | (167 | ) | (159 | ) | (165 | ) | (195 | ) | (148 | ) | |||||||||||||||||
Gain (Loss) on extinguishments of debt, net | — | — | — | — | — | (17 | ) | (53 | ) | (67 | ) | ||||||||||||||||||||||
Other, net | 6 | (50 | ) | (44 | ) | 14 | (11 | ) | 23 | (20 | ) | 9 | |||||||||||||||||||||
Total Other Expense | (145 | ) | (219 | ) | (193 | ) | (153 | ) | (169 | ) | (159 | ) | (268 | ) | (206 | ) | |||||||||||||||||
Income (Loss) Before Income Taxes | 119 | (64 | ) | 63 | (13 | ) | 93 | (7 | ) | (37 | ) | 13 | |||||||||||||||||||||
Income Tax (Expense) Benefit | (7 | ) | (14 | ) | (12 | ) | (11 | ) | (8 | ) | (14 | ) | 103 | 1 | |||||||||||||||||||
Net Income (Loss) | $ | 112 | $ | (78 | ) | $ | 51 | $ | (24 | ) | $ | 85 | $ | (21 | ) | $ | 66 | $ | 14 | ||||||||||||||
Net Income (Loss) Per Share - Basic | $ | 0.48 | $ | (0.36 | ) | $ | 0.21 | $ | (0.11 | ) | $ | 0.36 | $ | (0.09 | ) | $ | 0.22 | $ | 0.06 | ||||||||||||||
Net Income (Loss) Per Share - Diluted | $ | 0.47 | $ | (0.36 | ) | $ | 0.21 | $ | (0.11 | ) | $ | 0.35 | $ | (0.09 | ) | $ | 0.21 | $ | 0.06 | ||||||||||||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2014 |
Description of Business | ||||||||||||
Business Acquisition, Effective Date of Acquisition | 31-Oct-14 | 31-Oct-14 | ||||||||||
IP Equipment | $222 | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 90 | |||||||||||
Period company may receive up front payments for services to be provided in the future (in years) | 25 | |||||||||||
USF contributions | 234 | 194 | 191 | |||||||||
Bad debt expense | 22 | 17 | 15 | |||||||||
Net Income (Loss) | 66 | 85 | 51 | 112 | 14 | -21 | -24 | -78 | 314 | -109 | -422 | |
Capitalized labor and related costs associated with employee and contract labor working on capital projects | 187 | 164 | 146 | |||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 17 | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | $0.35 | |||||||||||
Network Access Costs | 695 | 607 | 613 | 614 | 618 | 608 | 616 | 629 | 2,529 | 2,471 | 2,602 | |
Network Related Expenses | 345 | 307 | 302 | 292 | 298 | 314 | 300 | 302 | 1,246 | 1,214 | 1,249 | |
Selling, General and Administrative Expenses | 393 | 266 | 267 | 255 | 263 | 292 | 310 | 297 | 1,181 | 1,162 | 1,201 | |
Total Costs and Expenses | 1,683 | 1,367 | 1,369 | 1,345 | 1,383 | 1,417 | 1,425 | 1,422 | 5,764 | 5,647 | 5,801 | |
Racks and Cabinets | 114 | |||||||||||
Facility Equipment | 151 | |||||||||||
Fixtures and Equipment, Gross | 487 | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $0.35 | |||||||||||
Sales Revenue | Customer Concentration Risk | ||||||||||||
Description of Business | ||||||||||||
Percentage of communications revenue from top ten customers | 17.00% | 17.00% | 17.00% | |||||||||
Minimum [Member] | ||||||||||||
Description of Business | ||||||||||||
Finite-lived intangible assets, useful life, minimum (in years) | 4 years | |||||||||||
Minimum [Member] | Facility and Leasehold Improvements | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 15 years | |||||||||||
Minimum [Member] | Network infrastructure (including fiber and conduit) | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 25 years | |||||||||||
Minimum [Member] | Operating Equipment | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 5 years | |||||||||||
Minimum [Member] | Office Equipment [Member] | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 3 years | |||||||||||
Minimum [Member] | Expansion and improvements of communications network and customer installations | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 3 years | |||||||||||
Maximum | ||||||||||||
Description of Business | ||||||||||||
Finite-lived intangible assets, useful life, minimum (in years) | 12 years | |||||||||||
Maximum | Facility and Leasehold Improvements | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 40 years | |||||||||||
Maximum | Network infrastructure (including fiber and conduit) | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 50 years | |||||||||||
Maximum | Operating Equipment | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 15 years | |||||||||||
Maximum | Office Equipment [Member] | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 7 years | |||||||||||
Maximum | Expansion and improvements of communications network and customer installations | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 7 years | |||||||||||
Maximum | Software development | ||||||||||||
Description of Business | ||||||||||||
Property, plant and equipment, useful life, minimum (in years) | 3 years | |||||||||||
Scenario, Previously Reported [Member] | ||||||||||||
Description of Business | ||||||||||||
Cost of Revenue | 2,471 | 2,602 | ||||||||||
Network Access Costs | 0 | 0 | ||||||||||
Network Related Expenses | 0 | 0 | ||||||||||
Selling, General and Administrative Expenses | 2,376 | 2,450 | ||||||||||
Total Costs and Expenses | 5,647 | 5,801 | ||||||||||
Restatement Adjustment [Member] | ||||||||||||
Description of Business | ||||||||||||
Cost of Revenue | -2,471 | -2,602 | ||||||||||
Network Access Costs | 2,471 | 2,602 | ||||||||||
Network Related Expenses | 1,214 | 1,249 | ||||||||||
Selling, General and Administrative Expenses | -1,214 | -1,249 | ||||||||||
Total Costs and Expenses | 0 | 0 | ||||||||||
As Restated [Member] | ||||||||||||
Description of Business | ||||||||||||
Cost of Revenue | 0 | 0 | ||||||||||
Network Access Costs | 2,471 | 2,602 | ||||||||||
Network Related Expenses | 1,214 | 1,249 | ||||||||||
Selling, General and Administrative Expenses | 1,162 | 1,201 | ||||||||||
Total Costs and Expenses | $5,647 | $5,801 |
Events_Associated_with_the_Mer2
Events Associated with the Merger of tw telecom inc. (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Oct. 30, 2014 | Dec. 31, 2011 | Aug. 12, 2014 | ||||||||
Acquisition | ||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 31-Oct-14 | 31-Oct-14 | ||||||||||||||||||||
Stock consideration per share | 0.7 | |||||||||||||||||||||
business acquisition, cash consideration per share | $10 | |||||||||||||||||||||
Long-term Debt, Gross | 11,366,000,000 | 8,392,000,000 | 11,366,000,000 | 8,392,000,000 | ||||||||||||||||||
Revenue | 1,914,000,000 | 1,629,000,000 | 1,625,000,000 | 1,609,000,000 | 1,602,000,000 | 1,569,000,000 | 1,565,000,000 | 1,577,000,000 | 6,777,000,000 | 6,313,000,000 | 6,376,000,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 138,000,000 | |||||||||||||||||||||
Common Stock, Shares Authorized | 433,333,333 | 343,333,333 | 433,333,333 | 343,333,333 | 433,333,333 | |||||||||||||||||
Shares issued in Amalgamation transaction (in shares) | 96,900,000 | |||||||||||||||||||||
Business Acquisition, Debt Assumed | 1,793,000,000 | |||||||||||||||||||||
Estimated total Amalgamation transaction consideration | 6,011,000,000 | |||||||||||||||||||||
Final Purchase Price Allocation [Abstract] | ||||||||||||||||||||||
Initial Purchase Price Allocation | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | $ | 309 | ||||||||||||||||||||
Property, Plant and Equipment | 1,555 | |||||||||||||||||||||
Goodwill | 5,124 | |||||||||||||||||||||
Identifiable Intangible Assets | 1,323 | |||||||||||||||||||||
Other Assets | 138 | |||||||||||||||||||||
Total Assets | 8,449 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||
Long-Term Debt | (2,099 | ) | ||||||||||||||||||||
Deferred Revenue | (60 | ) | ||||||||||||||||||||
Other Liabilities | (279 | ) | ||||||||||||||||||||
Total Liabilities | (2,438 | ) | ||||||||||||||||||||
Total Consideration to be Allocated | $ | 6,011 | ||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 309,000,000 | |||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Property and Equipment | 1,555,000,000 | |||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Goodwill | 7,689,000,000 | 2,577,000,000 | 7,689,000,000 | 2,577,000,000 | 2,565,000,000 | 5,124,000,000 | ||||||||||||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets not Goodwill | 1,323,000,000 | |||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Other Assets Acquired | 8,449,000,000 | |||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | -2,099,000,000 | |||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Noncurrent Liabilities, Deferred Revenue | -60,000,000 | |||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Other Liabilities Assumed | -279,000,000 | |||||||||||||||||||||
Business Acquisition, Purchase Price Allocation, Total Liabilities Assumed | 2,438,000,000 | |||||||||||||||||||||
business combination debt premiums incurred | 154,000,000 | |||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation | 152,000,000 | |||||||||||||||||||||
Business Acquisition, Share Price | $46.91 | |||||||||||||||||||||
Business Combination, Consideration Transferred | 8,100,000,000 | |||||||||||||||||||||
Pro Forma Financial Information [Abstract] | ||||||||||||||||||||||
Total Revenue | 8,123,000,000 | 7,825,000,000 | ||||||||||||||||||||
Net Loss | 141,000,000 | -165,000,000 | ||||||||||||||||||||
Net Loss per share (in dollars per share) | $0.42 | ($0.52) | ||||||||||||||||||||
Business Combination, Integration Related Costs | 70,000,000 | 81,000,000 | ||||||||||||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $0.42 | ($0.52) | ||||||||||||||||||||
TrancheB2022TermLoanTotal [Member] | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Long-term Debt, Gross | 2,000,000,000 | 2,000,000,000 | ||||||||||||||||||||
Term Loans | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Long-term Debt, Gross | 4,611,000,000 | [1] | 2,611,000,000 | [1] | 4,611,000,000 | [1] | 2,611,000,000 | [1] | ||||||||||||||
Senior Notes due 2019 (8.125%) | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Long-term Debt, Gross | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | ||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.13% | 8.13% | 8.13% | |||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Debt Instrument, Face Amount | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.38% | 5.38% | ||||||||||||||||||||
tw telecom [Member] | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Revenue | 285,000,000 | |||||||||||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Revenue | 0 | 0 | 0 | |||||||||||||||||||
Guarantor Subsidiaries [Member] | TrancheB2022TermLoanTotal [Member] | ||||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Long-term Debt, Gross | $2,000,000,000 | $2,000,000,000 | ||||||||||||||||||||
[1] | *The $2 billion Tranche B Term Loan due 2022 had an interest rate of 4.5% as of December 31, 2014. 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 December 31, 2014. |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Convertible Senior Notes | |||
Loss per share | |||
Securities not included in computation of diluted loss per share (in millions of shares) | 17 | 18 | 35 |
Stock options, restricted stock units and warrants | |||
Loss per share | |||
Securities not included in computation of diluted loss per share (in millions of shares) | 6 | 7 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | $19,489 | $17,329 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -9,629 | -9,089 | |
Net | 9,860 | 8,240 | |
Depreciation expense | 713 | 727 | 659 |
Land | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 192 | 193 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 0 | 0 | |
Net | 192 | 193 | |
Land Improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 73 | 72 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -50 | -47 | |
Net | 23 | 25 | |
Facility and Leasehold Improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 2,489 | 2,207 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -1,265 | -1,193 | |
Net | 1,224 | 1,014 | |
Network infrastructure | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 8,941 | 8,505 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -3,447 | -3,279 | |
Net | 5,494 | 5,226 | |
Operating Equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 7,217 | 6,057 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -4,669 | -4,381 | |
Net | 2,548 | 1,676 | |
Furniture, Fixtures and Office Equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 255 | 196 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -177 | -168 | |
Net | 78 | 28 | |
Other | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 29 | 22 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -21 | -21 | |
Net | 8 | 1 | |
Construction-in-Progress | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Gross | 293 | 77 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 0 | 0 | |
Net | $293 | $77 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation, Change in Accounting Estimate | |||||||||||
Property, Plant and Equipment, Gross | ($19,489) | ($17,329) | ($19,489) | ($17,329) | |||||||
Selling, General and Administrative and Depreciation Expense | -1,683 | -1,367 | -1,369 | -1,345 | -1,383 | -1,417 | -1,425 | -1,422 | -5,764 | -5,647 | -5,801 |
Selling, General and Administrative Expenses | -393 | -266 | -267 | -255 | -263 | -292 | -310 | -297 | -1,181 | -1,162 | -1,201 |
Depreciation and Amortization | -250 | -187 | -187 | -184 | -204 | -203 | -199 | -194 | -808 | -800 | -749 |
Network Related Expenses | 345 | 307 | 302 | 292 | 298 | 314 | 300 | 302 | 1,246 | 1,214 | 1,249 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||||||||
Asset retirement obligation, beginning balance | 56 | 55 | 56 | 55 | |||||||
Accretion expense | 8 | 7 | |||||||||
ARO liabilities assumed in acquisition | 22 | 0 | |||||||||
Liabilities settled | -7 | -6 | |||||||||
Effect of foreign currency rate change | -1 | 0 | |||||||||
Asset retirement obligation, ending balance | 85 | 56 | 85 | 56 | 55 | ||||||
Asset Retirement Obligation Change in Estimate | |||||||||||
Asset Retirement Obligation, Change in Accounting Estimate | |||||||||||
Property, Plant and Equipment, Gross | -24 | ||||||||||
Selling, General and Administrative and Depreciation Expense | -49 | ||||||||||
Selling, General and Administrative Expenses | -47 | ||||||||||
Depreciation and Amortization | -2 | ||||||||||
Earnings Per Share, Basic and Diluted Changes in Accounting Estimates | $0.23 | ||||||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||||||||
Asset retirement obligation, beginning balance | 73 | 73 | |||||||||
Asset retirement obligation, ending balance | 73 | ||||||||||
Asset Retirement Obligation, Change in Estimate Right-of-way | |||||||||||
Asset Retirement Obligation, Change in Accounting Estimate | |||||||||||
Earnings Per Share, Basic and Diluted Changes in Accounting Estimates | $0.10 | ||||||||||
Network Related Expenses | $21 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 |
Changes in carrying amount of goodwill | |||
Balance at the beginning of the period | $2,577 | $2,565 | $5,124 |
Goodwill adjustments | -12 | 12 | |
Balance at the end of the period | 7,689 | 2,577 | 5,124 |
Goodwill, Acquired During Period | $5,124 |
Acquired_Intangible_Assets_Det
Acquired Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | $2,320 | $999 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -921 | -826 | |
Finite-Lived Intangible Assets, Net | 1,399 | 173 | |
Impairment of Intangible Assets (Excluding Goodwill) | 17 | ||
Acquired finite-lived intangible asset amortization expense | 95 | 73 | 90 |
Total Acquired Intangible Assets | |||
Total Intangible assets, Gross Carrying Amount | 2,335 | 1,031 | |
Total intangible assets, Net | 1,414 | 205 | |
Estimated amortization expense of acquired finite-lived intangible asset | |||
2013 | 242 | ||
2014 | 223 | ||
2015 | 208 | ||
2016 | 205 | ||
2017 | 188 | ||
Thereafter | 333 | ||
Finite-Lived Intangible Assets, Net | 1,399 | 173 | |
Vyvx Trade Name | |||
Indefinite-Lived Intangible Assets: | |||
Indefinite-Lived Intangible Assets, Net | 15 | 32 | |
Customer Contracts and Relationships | |||
Finite-Lived Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | 1,977 | 786 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -741 | -678 | |
Finite-Lived Intangible Assets, Net | 1,236 | 108 | |
Acquired finite-lived intangible assets, amortization period (in years) | 6 years 9 months 18 days | ||
Estimated amortization expense of acquired finite-lived intangible asset | |||
Finite-Lived Intangible Assets, Net | 1,236 | 108 | |
Trademarks | |||
Finite-Lived Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | 115 | 55 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -47 | -31 | |
Finite-Lived Intangible Assets, Net | 68 | 24 | |
Acquired finite-lived intangible assets, amortization period (in years) | 4 years 2 months 12 days | ||
Estimated amortization expense of acquired finite-lived intangible asset | |||
Finite-Lived Intangible Assets, Net | 68 | 24 | |
Patents and Developed Technology | |||
Finite-Lived Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | 228 | 158 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -133 | -117 | |
Finite-Lived Intangible Assets, Net | 95 | 41 | |
Acquired finite-lived intangible assets, amortization period (in years) | 4 years | ||
Estimated amortization expense of acquired finite-lived intangible asset | |||
Finite-Lived Intangible Assets, Net | $95 | $41 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 12 Months Ended | 144 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2025 |
Employee Separations | ||||
Restructuring charge and reserve | ||||
Restructuring reserve | $37 | $8 | ||
Restructuring charges | 45 | 47 | 34 | |
Facility Closings | ||||
Restructuring charge and reserve | ||||
Restructuring reserve | 20 | 31 | ||
Benefit (loss) recognized as a result of lease modification | 1 | 7 | -2 | |
Network Related Expenses [Member] | Employee Separations | ||||
Restructuring charge and reserve | ||||
Restructuring charges | 11 | 12 | 8 | |
General and Administrative Expense [Member] | Employee Separations | ||||
Restructuring charge and reserve | ||||
Restructuring charges | $34 | $35 | $26 | |
Subsequent Event [Member] | ||||
Restructuring charge and reserve | ||||
Restructuring and Related Activities, Description | 2025 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Liabilities, Recurring (Details) (USD $) | 3 Months Ended | 12 Months Ended | 65 Months Ended | 24 Months Ended | 11 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2011 | Jul. 31, 2012 | Oct. 04, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Aug. 01, 2013 | Oct. 04, 2013 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | |||||||||
Carrying value of long-term debt, including current portion | $11,333 | 11,333 | $8,362 | ||||||
Fair Value, Measurements, Recurring | Total Carrying Value in Consolidated Balance Sheet | |||||||||
Long-term Debt, including the current portion: | |||||||||
Term Loans | 4,590 | 4,590 | 2,604 | ||||||
Senior Notes | 6,203 | 6,203 | 5,198 | ||||||
Convertible Notes | 333 | 333 | 474 | ||||||
Capital Leases and Other | 207 | 207 | 86 | ||||||
Total Long-term Debt, including the current portion: | 11,333 | 11,333 | 8,362 | ||||||
Fair Value, Measurements, Recurring | Unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) | |||||||||
Long-term Debt, including the current portion: | |||||||||
Term Loans | 4,593 | 4,593 | 2,633 | ||||||
Senior Notes | 6,481 | 6,481 | 5,673 | ||||||
Convertible Notes | 0 | 0 | 0 | ||||||
Capital Leases and Other | 0 | 0 | 0 | ||||||
Total Long-term Debt, including the current portion: | 11,074 | 11,074 | 8,306 | ||||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||||||||
Long-term Debt, including the current portion: | |||||||||
Term Loans | 0 | 0 | 0 | ||||||
Senior Notes | 0 | 0 | 0 | ||||||
Convertible Notes | 868 | 868 | 647 | ||||||
Capital Leases and Other | 207 | 207 | 86 | ||||||
Total Long-term Debt, including the current portion: | 1,075 | 1,075 | 733 | ||||||
Convertible Senior Notes 7 Percent Due 2015 [Member] | |||||||||
Long-term Debt, including the current portion: | |||||||||
Debt conversion, shares issued upon conversion (in shares) | 5 | ||||||||
Debt Conversion, Original Debt, Amount | 142 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | 7.00% | ||||||
Term Loans | Estimate of Fair Value Measurement [Member] | |||||||||
Long-term Debt, including the current portion: | |||||||||
Term Loans | 4,600 | 4,600 | 2,600 | ||||||
Tranche A Term Loan [Member] | |||||||||
Liabilities measured on a recurring basis | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||
Tranche B II Term Loan Six Hundred Fifty Million Dollars [Member] | |||||||||
Liabilities measured on a recurring basis | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | ||||||||
Long-term Debt, including the current portion: | |||||||||
Debt Instrument, Basis Floor | 1.50% | ||||||||
Tranche B III Term Loan Five Hundred Fifty Million Dollars [Member] | |||||||||
Liabilities measured on a recurring basis | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | ||||||||
Long-term Debt, including the current portion: | |||||||||
Debt Instrument, Basis Floor | 1.50% | ||||||||
Tranche B 2016 Term Loan [Member] | |||||||||
Liabilities measured on a recurring basis | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||
Long-term Debt, including the current portion: | |||||||||
Debt Instrument, Basis Floor | 1.50% | 1.50% | |||||||
Tranche B 2019 Term Loan [Member] | |||||||||
Liabilities measured on a recurring basis | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||
Long-term Debt, including the current portion: | |||||||||
Debt Instrument, Basis Floor | 1.50% | 1.50% | |||||||
TrancheBII2019TermLoan [Member] | |||||||||
Liabilities measured on a recurring basis | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||
Long-term Debt, including the current portion: | |||||||||
Debt Instrument, Basis Floor | 1.50% | 1.50% | |||||||
Senior Notes | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | |||||||||
Long-term Debt, including the current portion: | |||||||||
Senior Notes | $6,500 | 6,500 | $5,700 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Liabilities, Non Recurring (Details) (USD $) | 12 Months Ended | 11 Months Ended | 24 Months Ended | 65 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Oct. 04, 2013 | Aug. 01, 2013 | Sep. 30, 2012 | Oct. 04, 2013 | Jul. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2013 |
Tranche B-II 2019 Term Loan | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, Interest spread on debt (as percent) | 3.25% | |||||||
Debt instrument, basis floor (as percent) | 1.50% | |||||||
Tranche B 2019 Term Loan | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, Interest spread on debt (as percent) | 3.75% | |||||||
Debt instrument, basis floor (as percent) | 1.50% | |||||||
Tranche B 2016 Term Loan | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, Interest spread on debt (as percent) | 3.25% | |||||||
Debt instrument, basis floor (as percent) | 1.50% | |||||||
Tranche B III Term Loan | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, Interest spread on debt (as percent) | 4.25% | |||||||
Debt instrument, basis floor (as percent) | 1.50% | |||||||
Tranche B II Term Loan | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, Interest spread on debt (as percent) | 4.25% | |||||||
Debt instrument, basis floor (as percent) | 1.50% | |||||||
Tranche A Term Loan | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, Interest spread on debt (as percent) | 2.25% | |||||||
Senior Notes 11 Point 875 Percent Due 2019 [Member] | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, stated interest rate (as a percent) | 11.88% | 11.88% | ||||||
Senior Notes due 2019 (8.875%) | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, stated interest rate (as a percent) | 8.88% | |||||||
Convertible Senior Notes due 2016 (6.5%) | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% | ||||||
Not actively traded convertible notes | ||||||||
Liabilities measured on a recurring basis | ||||||||
Security coupon rates used for valuation, lowest interest rate | 7.00% | |||||||
Convertible Senior Notes 7 Percent Due 2015 [Member] | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | ||||||
Convertible Senior Notes due 2015 Series B (7.0%) | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | ||||||
Convertible Senior Notes due 2013 (15.0%) | ||||||||
Liabilities measured on a recurring basis | ||||||||
Debt instrument, stated interest rate (as a percent) | 15.00% | 15.00% | ||||||
Estimate of Fair Value, Fair Value Disclosure | Term Loans | ||||||||
Liabilities measured on a recurring basis | ||||||||
Term Loans | 4,600 | $2,600 | ||||||
Estimate of Fair Value, Fair Value Disclosure | Not actively traded convertible notes | ||||||||
Liabilities measured on a recurring basis | ||||||||
Convertible Notes | 868 | 647 | ||||||
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Senior Notes | ||||||||
Liabilities measured on a recurring basis | ||||||||
Senior Notes | 6,500 | $5,700 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2007 |
Derivative | ||||
Cash flow hedging contracts, gains (losses) recognized in Other Comprehensive Income (Loss) | $0 | $90 | ||
Gain (Loss) on interest rate swap agreements not designated as hedging instruments | 0 | -2 | -64 | |
Interest Rate Swap | ||||
Derivative | ||||
Loss on Cash Flow Hedge Ineffectiveness | -60 | |||
Gain (Loss) on interest rate swap agreements not designated as hedging instruments | -2 | -4 | ||
Parent Company [Member] | ||||
Derivative | ||||
Interest rate swaps, number of instruments | 2 | |||
Interest rate swaps, notional amount | 1,000 | |||
Basis of interest payment | three month LIBOR | three month LIBOR | ||
Parent Company [Member] | Interest Rate Swap, Agreement One | ||||
Derivative | ||||
Basis of interest payment | three month LIBOR | |||
Parent Company [Member] | Interest Rate Swap, Agreement Two | ||||
Derivative | ||||
Interest rate swaps, notional amount | 500 | |||
Basis of interest payment | three month LIBOR | |||
Interest Expense | ||||
Derivative | ||||
Cash flow hedging contracts, amount of gains (losses) reclassified from AOCI to Interest Expense | 0 | 26 | ||
Other Current Liabilities [Member] | ||||
Derivative | ||||
Interest rate swap agreements - Other noncurrent liabilities | $12 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $) | 0 Months Ended | ||||||
In Millions, unless otherwise specified | Aug. 16, 2013 | Aug. 12, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | ||
Long-term debt | |||||||
Total Debt Obligations | $11,366 | $8,392 | |||||
Total Unamortized (Discount) Premium | -33 | -30 | |||||
Carrying Value of Debt | 11,333 | 8,362 | |||||
Less current portion | -349 | -31 | |||||
Long-Term Debt, less current portion | 10,984 | 8,331 | |||||
Tranche B III 2019 and Tranche B 2020 Term Loans [Member] | |||||||
Long-term debt | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||||||
Term Loans | |||||||
Long-term debt | |||||||
Total Debt Obligations | 4,611 | [1] | 2,611 | [1] | |||
Total Unamortized (Discount) Premium | -21 | -7 | |||||
Floating Rate Senior Notes due 2015 | |||||||
Long-term debt | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | 4.20% | |||||
Senior Notes due 2018 (10.0%) | |||||||
Long-term debt | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | ||||
Floating Rate Senior Notes due 2018 [Member] | |||||||
Long-term debt | |||||||
Total Debt Obligations | 300 | 300 | |||||
Senior Notes 11 Point 875 Percent Due 2019 [Member] | |||||||
Long-term debt | |||||||
Total Debt Obligations | 0 | 605 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 11.88% | 11.88% | |||||
Total Unamortized (Discount) Premium | 0 | -8 | |||||
Senior Notes due 2019 (9.375%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 500 | 500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.38% | 9.38% | |||||
Total Unamortized (Discount) Premium | -6 | -7 | |||||
Senior Notes due 2019 (8.125%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 1,200 | 1,200 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.13% | 8.13% | |||||
Total Unamortized (Discount) Premium | -6 | -7 | |||||
Senior Notes due 2019 (8.875%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 300 | 300 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.88% | ||||||
Senior Notes due 2020 (8.625%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 900 | 900 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.63% | ||||||
Senior Notes due 2020 (7.0%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 775 | 775 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||
Senior Notes due 2021 (6.125%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 640 | 640 | |||||
5point375SeniorNotesdue2022 [Member] | |||||||
Long-term debt | |||||||
Total Debt Obligations | 1,000 | 0 | |||||
Convertible Senior Notes due 2013 (15.0%) | |||||||
Long-term debt | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 15.00% | 15.00% | |||||
Convertible Senior Notes 7 Percent Due 2015 [Member] | |||||||
Long-term debt | |||||||
Total Debt Obligations | 58 | 200 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||
Total Unamortized (Discount) Premium | 0 | -1 | |||||
Convertible Senior Notes due 2015 Series B (7.0%) | |||||||
Long-term debt | |||||||
Total Debt Obligations | 275 | 275 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||
Convertible Senior Notes due 2016 (6.5%) | |||||||
Long-term debt | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||||
Capital Leases | |||||||
Long-term debt | |||||||
Total Debt Obligations | 207 | 73 | |||||
Other | |||||||
Long-term debt | |||||||
Total Debt Obligations | 0 | 13 | |||||
Tranche B 2016 Term Loan [Member] | |||||||
Long-term debt | |||||||
Repayments of Debt | 595.5 | ||||||
Tranche B 2019 Term Loan [Member] | |||||||
Long-term debt | |||||||
Repayments of Debt | 815 | ||||||
Guarantor Subsidiaries [Member] | |||||||
Long-term debt | |||||||
Less current portion | 0 | 0 | |||||
Long-Term Debt, less current portion | 9,893 | 6,905 | |||||
Guarantor Subsidiaries [Member] | TrancheB2020TermLoanTotal [Member] | |||||||
Long-term debt | |||||||
Total Debt Obligations | $1,796 | ||||||
[1] | *The $2 billion Tranche B Term Loan due 2022 had an interest rate of 4.5% as of December 31, 2014. 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 December 31, 2014. |
LongTerm_Debt_Textuals_Details
Long-Term Debt - Textuals (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 65 Months Ended | 3 Months Ended | 28 Months Ended | 24 Months Ended | 11 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 26, 2009 | Nov. 01, 2014 | Nov. 14, 2013 | Aug. 31, 2012 | Jun. 30, 2009 | Jul. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Oct. 04, 2013 | Sep. 30, 2012 | Aug. 16, 2013 | Aug. 01, 2013 | Aug. 12, 2013 | Oct. 04, 2013 | Oct. 04, 2013 | Nov. 26, 2013 | Mar. 31, 2012 | Feb. 28, 2012 | Jan. 31, 2011 | Jul. 31, 2011 | Jun. 30, 2011 | Oct. 15, 2009 | Jun. 30, 2015 | Mar. 31, 2007 | Oct. 31, 2014 | Aug. 06, 2012 | Nov. 10, 2011 | Mar. 13, 2007 | Oct. 04, 2011 | Oct. 04, 2012 | Dec. 01, 2014 | Mar. 04, 2011 | Apr. 10, 2012 | Jun. 09, 2011 | Jan. 13, 2012 | Aug. 12, 2014 | Mar. 31, 2011 | Jan. 29, 2015 | |||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $142,000,000 | $200,000,000 | $100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Net Proceeds | 589,000,000 | 1,502,000,000 | 4,504,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest conversion into equity | 2,000,000 | 3,000,000 | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -53,000,000 | 0 | 0 | 0 | -67,000,000 | -17,000,000 | 0 | 0 | -53,000,000 | -84,000,000 | -160,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 349,000,000 | 349,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 9,000,000 | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 8,000,000 | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 308,000,000 | 308,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2,823,000,000 | 2,823,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | 7,869,000,000 | 7,869,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt Obligations | 11,366,000,000 | 11,366,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 11,366,000,000 | 8,392,000,000 | 11,366,000,000 | 8,392,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Net Proceeds | 590,000,000 | 0 | 293,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 78,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on Cash Flow Hedge Ineffectiveness | 60,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Notional Amount | 1,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Net Proceeds | 0 | 1,502,000,000 | 4,211,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
TrancheB2022TermLoanTotal [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
TrancheB2022TermLoanTotal [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2022 Term Loans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 4.50% | 4.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2022 Term Loans [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | 27,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 15,000,000 | 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 26,000,000 | 26,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B Term Loan 2022 upfront payment percentage | 0.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 640,000,000 | 640,000,000 | 640,000,000 | 640,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 640,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 6.13% | 6.13% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 11,000,000 | 11,000,000 | 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 56,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | Twelve Months Beginning November 15, 2016 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 103.06% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | Twelve Months Beginning November 15, 2017 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 101.53% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | Prior to June 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption with net proceeds from equity offerings of original principal (as percent) | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price with net proceeds from equity offerings of original principal (as percent) | 106.13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, minimum percentage of original principal amount outstanding after redemption from equity offerings (as percent) | 65.00% | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | Prior to June 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | Prior to November 2015 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period maximum following receipt of proceeds from equity offerings (number of days) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SeniorNotes6Point125PercentDue2021 [Member] | Level 3 Financing [Member] | Twelve Months Beginning November 15, 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 775,000,000 | 775,000,000 | 775,000,000 | 775,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 775,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 11,000,000 | 11,000,000 | 15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | Level 3 Financing [Member] | Twelve Months Beginning June 1, 2016 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 103.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | Level 3 Financing [Member] | Twelve Months Beginning June 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 101.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | Level 3 Financing [Member] | Twelve Months Beginning June 1, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | Level 3 Financing [Member] | Prior to June 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption minimum gross proceeds from equity offering ($100 million) | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption with net proceeds from equity offerings of original principal (as percent) | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price with net proceeds from equity offerings of original principal (as percent) | 107.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, minimum percentage of original principal amount outstanding after redemption from equity offerings (as percent) | 65.00% | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period maximum following receipt of proceeds from equity offerings (number of days) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 7 Percent Due 2020 [Member] | Level 3 Financing [Member] | Prior to June 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TrancheB2020TermLoanTotal [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 1,796,000,000 | 1,796,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 4,611,000,000 | [1] | 2,611,000,000 | [1] | 4,611,000,000 | [1] | 2,611,000,000 | [1] | |||||||||||||||||||||||||||||||||||||||||||||
Senior Secured Term Loan 2011 | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 730,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche A Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 2.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche A Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,400,000,000 | 1,400,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 2.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, effective interest rate at end of period (as a percent) | 2.65% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 280,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 8.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 280,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B II Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 4.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B II Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 650,000,000 | 650,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Additional Borrowings | 650,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 4.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 99.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B III Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 4.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B III Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 550,000,000 | 550,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Additional Borrowings | 550,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 4.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 28,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 95.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B II and Tranche B III Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -50,000,000 | -67,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2016 Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | 595,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2016 Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 99.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Trance B 2016 Term Loan annual repayment (as percent) | 0.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2016 Term Loan | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 8,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TrancheB2020TermLoan [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 595,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 17,000,000 | 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2019 Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | 815,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2019 Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 815,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 8,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 99.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2019 Term Loan | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 9,000,000 | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
TrancheBIII2019TermLoan [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 815,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 8,000,000 | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B 2016 Term Loan and Tranche B 2019 Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,415,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B-II 2019 Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | 1.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B-II 2019 Term Loan | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, basis floor (as percent) | 1.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 13,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | 1,200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tranche B-II 2019 Term Loan | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TrancheB2020TermLoanAdd-on [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 0.0025 | 0.0025 | 0.0025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2018 [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 300,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 3,000,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption minimum gross proceeds from equity offering ($100 million) | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2018 [Member] | Guarantor Subsidiaries [Member] | May 2016 through November 2016 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 101.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2018 [Member] | Guarantor Subsidiaries [Member] | May 2015 through May 2016 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2018 [Member] | Guarantor Subsidiaries [Member] | Prior to May 2015 [Member] [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption with net proceeds from equity offerings of original principal (as percent) | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price with net proceeds from equity offerings of original principal (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, minimum percentage of original principal amount outstanding after redemption from equity offerings (as percent) | 65.00% | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period maximum following receipt of proceeds from equity offerings (number of days) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2018 [Member] | Guarantor Subsidiaries [Member] | November 2016 and Thereafter [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2014 (9.25%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -22,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2014 (9.25%) | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.25% | 9.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 807,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.31% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Rate Senior Notes due 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 3.85% | 3.85% | 4.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2017 (8.75%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -40,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2017 (8.75%) | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 104.38% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2018 (10.0%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 56,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 11 Point 875 Percent Due 2019 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 11.88% | 11.88% | 11.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 0 | 605,000,000 | 0 | 605,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 11 Point 875 Percent Due 2019 [Member] | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 605,000,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 11.88% | 11.88% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 106.86% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 8,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -53,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 98.17% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, issuance transactions (number) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (9.375%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.38% | 9.38% | 9.38% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (9.375%) | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.38% | 9.38% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 6,000,000 | 6,000,000 | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 7,000,000 | 7,000,000 | 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument issuance price as a percentage of the principal amount (as a percent) | 98.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (9.375%) | Level 3 Financing [Member] | Twelve Months Beginning April 1, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 104.69% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (9.375%) | Level 3 Financing [Member] | Twelve Months Beginning April 1, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.34% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (9.375%) | Level 3 Financing [Member] | Twelve Months Beginning April 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (9.375%) | Level 3 Financing [Member] | Prior to April 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.13% | 8.13% | 8.13% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.13% | 8.13% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 6,000,000 | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 22,000,000 | 22,000,000 | 32,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | Level 3 Financing [Member] | Twelve Months Beginning July 1, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 104.06% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | Level 3 Financing [Member] | Twelve Months Beginning July 1, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.03% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | Level 3 Financing [Member] | Twelve Months Beginning July 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | Level 3 Financing [Member] | Prior to July 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.125%) | Level 3 Escrow Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Additional Borrowings | 600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 9,000,000 | 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 98.55% | 99.26% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.875%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.88% | 8.88% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.875%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 300,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.88% | 8.88% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 5,000,000 | 5,000,000 | 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.875%) | Level 3 Communications, Inc. | Twelve Months Beginning June 1, 2016 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.22% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.875%) | Level 3 Communications, Inc. | Twelve Months Beginning June 1, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 104.44% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.875%) | Level 3 Communications, Inc. | Twelve Months Beginning June 1, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2019 (8.875%) | Level 3 Communications, Inc. | Prior to June 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption minimum gross proceeds from equity offering ($100 million) | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption with net proceeds from equity offerings of original principal (as percent) | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price with net proceeds from equity offerings of original principal (as percent) | 108.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, minimum percentage of original principal amount outstanding after redemption from equity offerings (as percent) | 65.00% | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period maximum following receipt of proceeds from equity offerings (number of days) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2020 (8.625%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.63% | 8.63% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 900,000,000 | 900,000,000 | 900,000,000 | 900,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2020 (8.625%) | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 900,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.63% | 8.63% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 14,000,000 | 14,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2020 (8.625%) | Level 3 Financing [Member] | Twelve Months Beginning January 15, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 104.31% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2020 (8.625%) | Level 3 Financing [Member] | Twelve Months Beginning January 15, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.16% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2020 (8.625%) | Level 3 Financing [Member] | Twelve Months Beginning January 15, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes due 2020 (8.625%) | Level 3 Financing [Member] | Prior to January 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.38% | 5.38% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.38% | 5.38% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 12,000,000 | 12,000,000 | 17,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Financing [Member] | Twelve Months Beginning August 15, 2017 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.69% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Financing [Member] | Twelve Months Beginning August 15, 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 101.34% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Financing [Member] | Twelve Months Beginning August 15, 2019 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Financing [Member] | Prior To August 15, 2017 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption Minimum Gross Proceeds from Private or Public Offering | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, minimum percentage of original principal amount outstanding after redemption from equity offerings (as percent) | 60.00% | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period maximum following receipt of proceeds from equity offerings (number of days) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Escrow II, Inc. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | Level 3 Escrow II, Inc. [Member] | Prior To August 15, 2017 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption with net proceeds from equity offerings of original principal (as percent) | 40.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price with net proceeds from equity offerings of original principal (as percent) | 105.38% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5point75Percent Due 2022 [Member] | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.75% | 5.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5point75Percent Due 2022 [Member] | Level 3 Communications, Inc. | Twelve Months Beginning June 1, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 102.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5point75Percent Due 2022 [Member] | Level 3 Communications, Inc. | Twelve Months Beginning December 1, 2018 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 101.44% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5point75Percent Due 2022 [Member] | Level 3 Communications, Inc. | Prior To December 1, 2017 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption Minimum Gross Proceeds from Private or Public Offering | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption with net proceeds from equity offerings of original principal (as percent) | 40.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price with net proceeds from equity offerings of original principal (as percent) | 105.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, minimum percentage of original principal amount outstanding after redemption from equity offerings (as percent) | 60.00% | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period maximum following receipt of proceeds from equity offerings (number of days) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice minimum (number of days) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption period notice maximum (number of days) | 60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes 5point75Percent Due 2022 [Member] | Level 3 Communications, Inc. | Twelve Months Beginning December 1, 2019 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2013 (15.0%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 15.00% | 15.00% | 15.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes 7 Percent Due 2015 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | 7.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Original Debt, Amount | 142,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt conversion, shares issued upon conversion (in shares) | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 58,000,000 | 200,000,000 | 58,000,000 | 200,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes 7 Percent Due 2015 [Member] | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Additional Borrowings | 275,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Debt Issuance Costs | 0 | 0 | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Principal amount used for conversion | 1,000 | 1,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, redemption price of principal amount (as percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, convertible, conversion (price per share) | $27 | $27 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, number of shares converted for each $1000 principal amount (in shares) | 37 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2015 Series B (7.0%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | 7.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 275,000,000 | 275,000,000 | 275,000,000 | 275,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2015 Series B (7.0%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2016 (6.5%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% | 6.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Subordinated Notes due 2010 (6.0%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 6.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Principal amount exchanged | 142,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2010 (2.875%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 2.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Principal amount exchanged | 140,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2011 (5.25%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes due 2012 (3.5%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 3.50% | 3.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 274,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Discount Notes due 2013 (9.0%) | Level 3 Communications, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.00% | 9.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage due 2015 (9.86%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.86% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, weighted average interest rate (as percent) | 6.20% | 9.20% | 6.20% | 9.20% | |||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt Obligations | 207,000,000 | 207,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 207,000,000 | 73,000,000 | 207,000,000 | 73,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, weighted average interest rate (as percent) | 5.00% | 4.00% | 5.00% | 4.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
Future contractual maturities of long-term debt and capital leases (excluding issue discounts, premiums and fair value adjustments) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt Obligations | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 0 | 13,000,000 | 0 | 13,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Tranche B 2022 Term Loans [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Tranche B 2022 Term Loans [Member] | Guarantor Subsidiaries [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | TrancheB2020TermLoan [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | TrancheB2020TermLoan [Member] | Guarantor Subsidiaries [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 1.00% | 1.00% | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | TrancheBIII2019TermLoan [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, Interest spread on debt (as percent) | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | TrancheBIII2019TermLoan [Member] | Guarantor Subsidiaries [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | Senior Notes due 2019 (9.375%) | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.38% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 40,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | Senior Notes 5point 625Percent Due 2023 [Member] | Level 3 Financing [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.63% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | *The $2 billion Tranche B Term Loan due 2022 had an interest rate of 4.5% as of December 31, 2014. 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 December 31, 2014. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($147) | $36 | $26 | ($80) |
Other comprehensive income before reclassifications | -187 | 8 | 38 | |
Amounts reclassified from accumulated other comprehensive income | 4 | 2 | 68 | |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -111 | 67 | 56 | 39 |
Other comprehensive income before reclassifications | -178 | 11 | 17 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | -90 |
Other comprehensive income before reclassifications | 0 | 0 | 25 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 65 | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -36 | -31 | -30 | -29 |
Other comprehensive income before reclassifications | -9 | -3 | -4 | |
Amounts reclassified from accumulated other comprehensive income | $4 | $2 | $3 |
Employee_Benefit_Benefits_and_2
Employee Benefit Benefits and Stock-Based Compensation - Non-cash compensation expensed and capitalized (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation expense | |||
Stock- based compensation expense | $74 | $152 | $136 |
Capitalized Noncash Compensation | -1 | -1 | -1 |
Non-cash compensation expense | 73 | 151 | 135 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 4 | 5 | 9 |
Outperform Stock Options | |||
Stock-based compensation expense | |||
Stock- based compensation expense | 8 | 21 | 14 |
Restricted Stock Units and Shares | |||
Stock-based compensation expense | |||
Stock- based compensation expense | 34 | 38 | 40 |
401(k) Match Expense | |||
Stock-based compensation expense | |||
Stock- based compensation expense | 23 | 24 | 23 |
Restricted Stock Unit Bonus Grant | |||
Stock-based compensation expense | |||
Stock- based compensation expense | -5 | 59 | 46 |
Management Incentive and Retention Plan | |||
Stock-based compensation expense | |||
Stock- based compensation expense | $0 | $10 | $13 |
Employee_Benefit_Benefits_and_3
Employee Benefit Benefits and Stock-Based Compensation - Outperform Stock Options (Details) (Outperform Stock Options, USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $18.70 | $1.50 | $0.80 | ||
Unamortized compensation expense | 7 | ||||
Weighted average period over which unamortized compensation cost will be recognized (in years) | 1 year 3 months 4 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||||
Expected Dividend Yield Rate | 2.24% | 2.05% | |||
Expected Life (in years) | 3 years | 3 years | |||
Expected Correlation Factor | 0.44 | 0.32 | |||
Theoretical Value | 101.00% | 110.00% | |||
Estimated Forfeiture Rate | 15.00% | 20.00% | |||
Fair value of OSO units awarded | 17 | 29 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |||||
Options outstanding, beginning (in shares) | 2,148,865 | 2,066,419 | 1,288,712 | ||
Options granted (in shares) | 0 | 748,481 | 1,195,452 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | -52,901 | -271,883 | -72,335 | ||
Options expired (in shares) | -106,844 | -286,924 | -278,111 | ||
Options exercised (in shares) | -771,251 | -107,228 | -67,299 | ||
Options outstanding, ending (in shares) | 1,217,869 | 2,148,865 | 2,066,419 | 1,288,712 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |||||
Options, Beginning, Initial Strike Price Per Unit, Minimum (in dollars per share) | $14.10 | $14.10 | $10.50 | ||
Options, Beginning, Initial Strike Price Per Unit, Maximum (in dollars per share) | $36.60 | $36.60 | $36.60 | ||
Options, Beginning, Weighted Average Initial Strike Price (in dollars per share) | $23.99 | $23.40 | $20.51 | ||
Options, Beginning, Aggregate Intrinsic Value | $31.60 | $6.60 | $1.80 | $88 | |
Options, Beginning, Average Remaining Contractual Term (in years) | 10 months 24 days | 1 year 5 months 15 days | 1 year 8 months 23 days | 1 year 6 months 11 days | |
Options granted, Initial Strike Price Per Unit, Minimum (in dollars per share) | $0 | $20.29 | $16.99 | ||
Options granted, Initial Strike Price Per Unit, Maximum (in dollars per share) | $0 | $26.69 | $27.53 | ||
Options granted, Weighted Average Initial Strike Price (in dollars per share) | $0 | $22.64 | $24.65 | ||
Options forfeited, Initial Strike Price Per Unit, Minimum (in dollars per share) | $16.99 | $14.10 | $12 | ||
Options forfeited, Initial Strike Price Per Unit, Maximum (in dollars per share) | $27.53 | $36.60 | $36.60 | ||
Options forfeited, Weighted Average Initial Strike Price (in dollars per share) | $22.99 | $22.33 | $21.80 | ||
Options expired, Initial Strke Price Per Unit, Minimum (in dollars per share) | $36.60 | $16.35 | $15 | ||
Options expired, Initial Strke Price Per Unit, Maximum (in dollars per share) | $36.60 | $24.30 | $22.65 | ||
Options expired, Weighted Average Initial Strike Price (in dollars per share) | $36.60 | $21.48 | $18.45 | ||
Options exercised, Initial Strike Price Per Unit, Minimum (in dollars per share) | $14.70 | $14.10 | $10.50 | ||
Options exercised, Initial Strike Price Per Unit, Maximum (in dollars per share) | $27.53 | $14.10 | $13.80 | ||
Options exercised, Weighted Average Initial Strike Price (in dollars per share) | $24.26 | $14.10 | $12.48 | ||
Options, Ending, Initial Strike Price Per Unit, Minimum (in dollars per share) | $16.99 | $14.10 | $14.10 | $10.50 | |
Options, Ending, Initial Strike Price Per Unit, Maximum (in dollars per share) | $27.53 | $36.60 | $36.60 | $36.60 | |
Options, Ending, Weighted Average Initial Strike Price (in dollars per share) | $22.76 | $23.99 | $23.40 | $20.51 | |
Options, Ending, Average Remaining Contractual Term (in years) | 10 months 24 days | 1 year 5 months 15 days | 1 year 8 months 23 days | 1 year 6 months 11 days | |
On or After April 1, 2007 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Life of Award | 3 | ||||
Percent vested after three years | 100.00% | ||||
S and P 500 Index | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||||
Expected volatility rate | 19.00% | 23.00% | |||
Level 3 Communications, Inc. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||||
Expected volatility rate | 39.00% | 39.00% | |||
Performance Range 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Maximum | 0.00% | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Success Multiplier of Pre Multiplier Gain | 0 | 0 | |||
Performance Range 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Minimum | 0.00% | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Maximum | 11.00% | 11.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Success Multiplier of Pre Multiplier Gain | 0.36 | 0.36 | |||
Performance Range 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Qualifier to Index, Minimum | 11.00% | 11.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Success Multiplier of Pre Multiplier Gain | 4 | 4 |
Employee_Benefit_Benefits_and_4
Employee Benefit Benefits and Stock-Based Compensation - Range of OSO Exercise Prices (Details) (Outperform Stock Options, USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Outperform Stock Options | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | ||||
Options exercised, Weighted Average Initial Strike Price (in dollars per share) | $24.26 | $14.10 | $12.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,217,869 | 2,148,865 | 2,066,419 | 1,288,712 |
Total realized value of OSO units | $18.70 | $1.50 | $0.80 | |
OSO units Outstanding, Range of Exercise Prices, Minimum (in dollars per share) | $16.99 | $14.10 | $14.10 | $10.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Initial Exercise Price, Maximum | $27.53 | $36.60 | $36.60 | $36.60 |
OSO units Outstanding, Number Outstanding (in shares) | 1,217,869 | |||
OSO units Outstanding, Average Remaining Contractual Term | 10 months 24 days | 1 year 5 months 15 days | 1 year 8 months 23 days | 1 year 6 months 11 days |
OSO units Outstanding, Weighted Average Initial Strike Price (in dollars per share) | $22.76 | $23.99 | $23.40 | $20.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -771,251 | -107,228 | -67,299 | |
OSO units Exercisable, Number Exercisable (in shares) | 0 | |||
OSO units Exercisable, Weighted Average Initial Strike Price (in dollars per share) | $0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | -52,901 | -271,883 | -72,335 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 732,593 | 90,879 | 0 |
Employee_Benefit_Benefits_and_5
Employee Benefit Benefits and Stock-Based Compensation - Restricted Stock and Units (Details) (Restricted Stock Units and Shares, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
year | |||
Restricted Stock Units and Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Restrictions on transfer lapse, minimum (in years) | 1 | ||
Restrictions on transfer lapse, maximum (in years) | 4 | ||
Fair value of units and shares awarded | $96 | $34 | $69 |
Unamortized compensation expense | 85 | ||
Weighted average period over which unamortized compensation cost will be recognized (in years) | 3 years 2 months 5 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Nonvested, Beginning balance (in shares) | 2,924,350 | 3,636,976 | 2,030,783 |
Stock and units granted (in shares) | 2,255,883 | 1,617,592 | 2,869,584 |
Lapse of restrictions (in shares) | -1,151,830 | -1,841,757 | -1,048,757 |
Stock and units forfeited (in shares) | -241,785 | -488,461 | -214,634 |
Nonvested, Ending balance (in shares) | 3,786,618 | 2,924,350 | 3,636,976 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |||
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value (in dollars per share) | $22.77 | $24.71 | $26.25 |
Stock and units granted, Weighted Average Grant Date Fair Value (in dollars per share) | $42.36 | $21.26 | $24.13 |
Lapse of restrictions, Weighted Average Grant Date Fair Value (in dollars per share) | $22.94 | $25.19 | $26.06 |
Stock and units forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $28.90 | $23.10 | $24.92 |
Nonvested, Ending balance, Weighted Average Grant Date Fair Value (in dollars per share) | $33.91 | $22.77 | $24.71 |
Total fair value of restricted stock and restricted stock units whose restriction lapsed | $27 | $46 | $27 |
Employee_Benefit_Benefits_and_6
Employee Benefit Benefits and Stock-Based Compensation - MIRP Stock and Units (Details) (Management Incentive and Retention Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Management Incentive and Retention Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Nonvested, Beginning balance (in shares) | 195,000 | 465,000 | 0 |
Stock and units granted (in shares) | 0 | 0 | 465,000 |
Lapse of restrictions (in shares) | -195,000 | -270,000 | 0 |
Stock and units forfeited (in shares) | 0 | 0 | 0 |
Nonvested, Ending balance (in shares) | 0 | 195,000 | 465,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |||
Nonvested, Beginning balance, Weighted Average Grant Date Fair Value (in dollars per share) | $25.92 | $25.92 | $0 |
Stock and units granted, Weighted Average Grant Date Fair Value (in dollars per share) | $0 | $25.92 | |
Lapse of restrictions, Weighted Average Grant Date Fair Value (in dollars per share) | $25.92 | $25.92 | $0 |
Stock and units forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $0 | $0 | |
Nonvested, Ending balance, Weighted Average Grant Date Fair Value (in dollars per share) | $25.92 | $25.92 |
Employee_Benefit_Benefits_and_7
Employee Benefit Benefits and Stock-Based Compensation - Warrants (Details) (Warrant [Member], USD $) | Dec. 31, 2012 |
Warrant [Member] | |
Class of Warrant or Right | |
Warrants outstanding (in shares) | 45,593 |
Warrants outstanding, exercise price (in dollars per share) | $73.50 |
Employee_Benefit_Benefits_and_8
Employee Benefit Benefits and Stock-Based Compensation - Defined Contribution (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
year | ||||
Schedule of Defined Contribution Plans Disclosures | ||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee | $17,500 | |||
Defined Contribution Plan, Vesting Period (in years) | 3 | |||
Defined Contribution Plan, Vesting Percentage After Vesting Period | 100.00% | |||
Defined Contribution Plan, Cost Recognized | 23,000,000 | 24,000,000 | 23,000,000 | |
After January 1, 2012 | ||||
Schedule of Defined Contribution Plans Disclosures | ||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percentage | 100.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percentage | 4.00% | |||
tw telecom 401(K) Plan [Member] | ||||
Schedule of Defined Contribution Plans Disclosures | ||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percentage | 100.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percentage | 5.00% | |||
Defined Contribution Plan, Cost Recognized | 2,000,000 | |||
All Other Defined Contribution | ||||
Schedule of Defined Contribution Plans Disclosures | ||||
Defined Contribution Plan, Cost Recognized | 6,000,000 | 5,000,000 | 7,000,000 | |
Network Related Expenses [Member] | ||||
Schedule of Defined Contribution Plans Disclosures | ||||
Defined Contribution Plan, Cost Recognized | 4,000,000 | 4,000,000 | 4,000,000 | |
Selling, General and Administrative Expenses [Member] | ||||
Schedule of Defined Contribution Plans Disclosures | ||||
Defined Contribution Plan, Cost Recognized | $19,000,000 | $20,000,000 | $19,000,000 |
Employee_Benefit_Benefits_and_9
Employee Benefit Benefits and Stock-Based Compensation - Defined Benefits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $151 | $148 |
Defined Benefit Plan, Benefit Obligation | 176 | 165 |
Defined Benefit Plan, Funded Status of Plan | $25 | $17 |
Recovered_Sheet1
Employee Benefit Benefits and Stock-Based Compensation - Annual Discretionary Bonus Grant (Details) (USD $) | 12 Months Ended | |||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee | $17,500 | |||
Accrued Bonuses, Current | 167,000,000 | 124,000,000 | 103,000,000 | |
Cash Payments for Employee Bonus | 57,000,000 | 50,000,000 | ||
Expected Percent of Bonus Paid in Cash | 100.00% | |||
Restricted Stock Unit Bonus Grant | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted or Expected to Be Granted in Next Fiscal Period | 1.4 | 2.1 | ||
Subsequent Event [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee | $18,000 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) by Current and Deferred (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||||||||||
United States federal | $0 | ($9) | $0 | ||||||||
State | 1 | 1 | 2 | ||||||||
Foreign | 40 | 37 | 36 | ||||||||
Current income tax provision (benefit) | 41 | 29 | 38 | ||||||||
Deferred, net of changes in valuation allowances: | |||||||||||
United States federal | -6 | 3 | 3 | ||||||||
State | -15 | 0 | 0 | ||||||||
Foreign | -96 | 6 | 7 | ||||||||
Income Tax Benefit (Expense) | $103 | ($8) | ($12) | ($7) | $1 | ($14) | ($11) | ($14) | $76 | ($38) | ($48) |
Income_Taxes_Income_Loss_by_Ge
Income Taxes - Income (Loss) by Geographic Region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $207 | ($122) | ($434) | ||||||||
Foreign | 31 | 51 | 60 | ||||||||
Income (Loss) Before Income Taxes | ($37) | $93 | $63 | $119 | $13 | ($7) | ($13) | ($64) | $238 | ($71) | ($374) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Reconciliation [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | ||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Computed tax benefit at statutory rate | $83 | ($25) | ($131) | ||||||||
Effects of earnings in jurisdictions outside of U.S. | -13 | -12 | -25 | ||||||||
Change in valuation allowance | -197 | 27 | 145 | ||||||||
Permanent Items | 44 | 44 | 48 | ||||||||
Indefinite-lived assets | -2 | 3 | 3 | ||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | 3 | 9 | -3 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | -7 | -7 | -4 | ||||||||
Other, net | 5 | 3 | 1 | ||||||||
Income Tax (Expense) Benefit | ($103) | $8 | $12 | $7 | ($1) | $14 | $11 | $14 | ($76) | $38 | $48 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets (Liabilities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets (Liabilities) [Line Items] | |||
Deferred Tax Liabilities, Intangible Assets | $15 | ||
Deferred Tax Assets: | |||
Accrued payroll and related benefits | 113 | 132 | |
Deferred revenue | 322 | 336 | |
Unutilized tax net operating loss carry forwards | 5,218 | 4,791 | |
Fixed assets and intangible assets | 90 | 102 | |
Intercompany loss | 128 | 139 | |
Other | 174 | 144 | |
Total Deferred Tax Assets | 6,045 | 5,644 | |
Deferred Tax Liabilities: | |||
Fixed assets and intangible assets | -1,371 | -790 | |
Deferred revenue | -73 | -76 | |
Other | -59 | -33 | |
Foreign branch income | -130 | -163 | |
Total Deferred Tax Liabilities | -1,633 | -1,062 | |
Net Deferred Tax Assets before valuation allowance | 4,412 | 4,582 | |
Valuation Allowance | -4,437 | -4,698 | |
Net Deferred Tax (Liability) Asset after Valuation Allowance | 25 | 116 | |
Net current deferred income tax asset | 8 | 9 | |
Net current deferred income tax liability | 0 | -2 | |
Net non-current deferred income tax asset | 292 | 211 | |
Net non-current deferred income tax liability | -325 | -334 | |
Deferred Tax Assets, Net of Valuation Allowance | 15 | ||
U.S. Internal Revenue Service (IRS) | |||
Deferred Tax Assets (Liabilities) [Line Items] | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 100 | ||
Deferred Tax Liabilities: | |||
Valuation Allowance | -4,400 | -4,700 | |
Operating Loss Carryforwards | $10,304 |
Income_Taxes_Operating_Loss_Ca
Income Taxes - Operating Loss Carryforward (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $4,437,000,000 | $4,698,000,000 |
U.S. Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 10,304,000,000 | |
Deferred Tax Assets, Valuation Allowance | 4,400,000,000 | 4,700,000,000 |
U.S. Internal Revenue Service (IRS) | Operating Loss Expiring, 2022 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 186,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2023 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 380,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2024 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 1,456,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2025 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 1,299,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2026 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 1,244,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2027 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 1,615,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2028 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 482,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2029 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 694,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2030 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 664,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2031 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 827,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2032 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 730,000,000 | |
U.S. Internal Revenue Service (IRS) | Expiring, 2033 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 289,000,000 | |
U.S. Internal Revenue Service (IRS) | Operating Loss Expiring, 2034 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 438,000,000 | |
Foreign jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforward, Disregarded for Domestic Country Tax Purposes | 6,100,000,000 | |
State jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 7,900,000,000 | |
tw telecom [Member] | U.S. Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $1,000,000,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits, increase from prior years positions netted against DTA | $5 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 14 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 1 | 0 | 4 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, Beginning balance | 13 | 18 | 15 |
Gross increases - tax positions during 2012 | 0 | -1 | -1 |
Gross decreases - lapse of statue of limitations | -2 | -6 | -1 |
Gross decreases - settlements with taxing authorities | 0 | 0 | -1 |
Unrecognized tax benefits, Ending Balance | 17 | 13 | 18 |
Accrued interest and penalties in the Company's liability for uncertain tax positions | -17 | -18 | -22 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | -1 | ||
Accrued interest and penalties related to uncertain tax positions in income tax expense in its consolidated statements of operation | ($4) | ($3) |
Segment_Information_Summarized
Segment Information Summarized Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information | |||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $314 | ($109) | ($422) | ||||||||
Other Nonoperating Income (Expense) | -775 | -737 | -949 | ||||||||
Adjusted EBITDA by Segment [Line Items] | 1,895 | 1,624 | 1,459 | ||||||||
Income Tax Benefit (Expense) | 103 | -8 | -12 | -7 | 1 | -14 | -11 | -14 | 76 | -38 | -48 |
Revenue | 1,914 | 1,629 | 1,625 | 1,609 | 1,602 | 1,569 | 1,565 | 1,577 | 6,777 | 6,313 | 6,376 |
Capital expenditures | -910 | -760 | -743 | ||||||||
Depreciation and amortization | -250 | -187 | -187 | -184 | -204 | -203 | -199 | -194 | -808 | -800 | -749 |
Total Assets | 20,947 | 12,874 | 20,947 | 12,874 | |||||||
Share-based Compensation | -73 | -151 | -135 | ||||||||
non-cash impairment | -1 | -7 | 0 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Adjusted EBITDA by Segment [Line Items] | -732 | -714 | -722 | ||||||||
Capital expenditures | -145 | -100 | -99 | ||||||||
Total Assets | 284 | 266 | 284 | 266 | |||||||
North America [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Adjusted EBITDA by Segment [Line Items] | 1,960 | 1,799 | 1,708 | ||||||||
Capital expenditures | -432 | -398 | -407 | ||||||||
Total Assets | 8,082 | 8,133 | 8,082 | 8,133 | |||||||
Europe [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Adjusted EBITDA by Segment [Line Items] | 214 | 226 | 195 | ||||||||
Capital expenditures | -117 | -128 | -115 | ||||||||
Total Assets | 1,970 | 2,030 | 1,970 | 2,030 | |||||||
Latin America [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Adjusted EBITDA by Segment [Line Items] | 348 | 313 | 278 | ||||||||
Capital expenditures | -153 | -134 | -122 | ||||||||
Total Assets | 2,451 | 2,445 | 2,451 | 2,445 | |||||||
tw telecom [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | -63 | 0 | |||||||||
Total Assets | $8,160 | $0 | $8,160 | $0 |
Segment_Information_Revenue_Fr
Segment Information Revenue From External Customers (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment information | |||||||||||
Revenue from external customers | $1,914 | $1,629 | $1,625 | $1,609 | $1,602 | $1,569 | $1,565 | $1,577 | $6,777 | $6,313 | $6,376 |
Core Network Service [Member] | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 6,195 | 5,591 | 5,463 | ||||||||
Core Network Service [Member] | North America | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 4,240 | 3,949 | 3,840 | ||||||||
Core Network Service [Member] | Europe | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 891 | 888 | 911 | ||||||||
Core Network Service [Member] | Latin America | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 779 | 754 | 712 | ||||||||
tw telecom [Member] | Latin America | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 285 | 0 | |||||||||
Wholesale Voice Services and Other [Member] | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 582 | 722 | 913 | ||||||||
Wholesale Voice Services and Other [Member] | North America | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 530 | 681 | 863 | ||||||||
Wholesale Voice Services and Other [Member] | Europe | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 19 | 31 | 40 | ||||||||
Wholesale Voice Services and Other [Member] | Latin America | |||||||||||
Segment information | |||||||||||
Revenue from external customers | $33 | $10 | $10 |
Segment_Information_Revenue_By
Segment Information Revenue By Service Offering (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer | |||||||||||
Revenue | $1,914 | $1,629 | $1,625 | $1,609 | $1,602 | $1,569 | $1,565 | $1,577 | $6,777 | $6,313 | $6,376 |
Core Network Service | |||||||||||
Revenue from External Customer | |||||||||||
Revenue | 6,195 | 5,591 | 5,463 | ||||||||
Wholesale Voice Services and Other | |||||||||||
Revenue from External Customer | |||||||||||
Revenue | $582 | $722 | $913 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Other Items - Lawsuits (Details) (USD $) | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 |
Loss Contingencies | |||
Estimated Litigation Liability | $171 | ||
Peruvian Tax Litigation | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Asserted Claim | 55 | ||
Loss Contingency Accrual, Period Increase (Decrease) | 28 | ||
Peruvian Tax Litigation, Before Interest | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Asserted Claim | 26 | ||
Peruvian Tax Litigation, Income Taxwitholding 2001 and 2002 | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Asserted Claim | 3 | ||
Peruvian Tax Litigation, Disallowance of VAT in 2005 | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Asserted Claim | 16 | ||
Peruvian Tax Litigation, Vat for 2001 and 2002 | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Asserted Claim | 7 | ||
Employee Severance and Contractor Termination Disputes | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Asserted Claim | 44 | ||
Maximum | Brazilian Tax Claims | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 57 | ||
Brazilian Tax Reserve Release [Member] | Brazilian Tax Claims | Pending Litigation | |||
Loss Contingencies | |||
Loss Contingency Accrual, Period Increase (Decrease) | 3 | 6 | |
Loss Contingency Accrual, Payments | $5 |
Commitments_Contingencies_and_3
Commitments, Contingencies and Other Items - Other Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
year | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Amount outstanding under letters of credit | $28 | $29 | |
Collateralized Financings | 23 | 25 | |
Payments under these right-of-way agreements | 173 | 161 | 172 |
Rent expense, including common area maintenance, under non-cancelable lease agreements | 318 | 311 | 308 |
Right-of-Way Agreements | |||
Right-of-Way Agreements, 2013 | 118 | ||
Right-of-Way Agreements, 2014 | 58 | ||
Right-of-Way Agreements, 2015 | 53 | ||
Right-of-Way Agreements, 2016 | 51 | ||
Right-of-Way Agreements, 2017 | 42 | ||
Right-of-Way Agreements, Thereafter | 315 | ||
Right-of-Way Agreements, Total | 637 | ||
Facilities | |||
Facilities, 2013 | 302 | ||
Facilities, 2014 | 244 | ||
Facilities, 2015 | 207 | ||
Facilities, 2016 | 174 | ||
Facilities, 2017 | 142 | ||
Facilities, Thereafter | 655 | ||
Facilities, Total | 1,724 | ||
Total | |||
Right-of-Way Agreements and Facilities, 2013 | 420 | ||
Right-of-Way Agreements and Facilities, 2014 | 302 | ||
Right-of-Way Agreements and Facilities, 2015 | 260 | ||
Right-of-Way Agreements and Facilities, 2016 | 225 | ||
Right-of-Way Agreements and Facilities, 2017 | 184 | ||
Right-of-Way Agreements and Facilities, Thereafter | 970 | ||
Right-of-Way Agreements and Facilities, Total | 2,361 | ||
Future Minimum Sublease Receipts | |||
2013 | 5 | ||
2014 | 4 | ||
2015 | 4 | ||
2016 | 1 | ||
2017 | 1 | ||
Thereafter | 0 | ||
Total | $15 | ||
Period of Right-of-Way Agreements with cancelable agreements (in years) | 1 |
Commitments_Contingencies_and_4
Commitments, Contingencies and Other Items - Purchase Commitments (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Long-term Purchase Commitment | |
Total | $1,039 |
Less than 1 Year | 445 |
2 - 3 Years | 317 |
4 - 5 Years | 102 |
After 5 Years | 175 |
Cost of Access Services | |
Long-term Purchase Commitment | |
Total | 710 |
Less than 1 Year | 378 |
2 - 3 Years | 262 |
4 - 5 Years | 51 |
After 5 Years | 19 |
Third Party Maintenance Services | |
Long-term Purchase Commitment | |
Total | 329 |
Less than 1 Year | 67 |
2 - 3 Years | 55 |
4 - 5 Years | 51 |
After 5 Years | $156 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Narrative (Details) (Senior Notes due 2020 (7.0%)) | Dec. 31, 2014 |
Long-term debt | |
Debt instrument, stated interest rate (as a percent) | 7.00% |
Level 3 Financing [Member] | |
Long-term debt | |
Debt instrument, stated interest rate (as a percent) | 7.00% |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Statements of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Financial Information | |||||||||||
Revenue | $1,914 | $1,629 | $1,625 | $1,609 | $1,602 | $1,569 | $1,565 | $1,577 | $6,777 | $6,313 | $6,376 |
Network Access Costs | 695 | 607 | 613 | 614 | 618 | 608 | 616 | 629 | 2,529 | 2,471 | 2,602 |
Network Related Expenses | 345 | 307 | 302 | 292 | 298 | 314 | 300 | 302 | 1,246 | 1,214 | 1,249 |
Costs and Expenses: | |||||||||||
Depreciation and Amortization | 250 | 187 | 187 | 184 | 204 | 203 | 199 | 194 | 808 | 800 | 749 |
Selling, General and Administrative Expenses | 393 | 266 | 267 | 255 | 263 | 292 | 310 | 297 | 1,181 | 1,162 | 1,201 |
Total Costs and Expenses | 1,683 | 1,367 | 1,369 | 1,345 | 1,383 | 1,417 | 1,425 | 1,422 | 5,764 | 5,647 | 5,801 |
Operating Income (Loss) | 231 | 262 | 256 | 264 | 219 | 152 | 140 | 155 | 1,013 | 666 | 575 |
Other Income (Expense): | |||||||||||
Interest Income | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 2 |
Interest expense | -195 | -159 | -149 | -151 | -148 | -165 | -167 | -169 | -654 | -649 | -733 |
Interest income (expense) affiliates, net | 0 | 0 | 0 | ||||||||
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | ||||||||
Other income (expense), net | -122 | -88 | -218 | ||||||||
Total Other Expense | -268 | -169 | -193 | -145 | -206 | -159 | -153 | -219 | -775 | -737 | -949 |
Income (Loss) Before Income Taxes | -37 | 93 | 63 | 119 | 13 | -7 | -13 | -64 | 238 | -71 | -374 |
Income Tax Benefit (Expense) | 103 | -8 | -12 | -7 | 1 | -14 | -11 | -14 | 76 | -38 | -48 |
Net income (loss) | 314 | -109 | -422 | ||||||||
Net Income (Loss) | 66 | 85 | 51 | 112 | 14 | -21 | -24 | -78 | 314 | -109 | -422 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -183 | 10 | 106 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 131 | -99 | -316 | ||||||||
Level 3 Communications, Inc. | |||||||||||
Condensed Consolidating Financial Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Network Access Costs | 0 | 0 | 0 | ||||||||
Network Related Expenses | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Depreciation and Amortization | 0 | 0 | 0 | ||||||||
Selling, General and Administrative Expenses | 21 | 3 | 2 | ||||||||
Total Costs and Expenses | 21 | 3 | 2 | ||||||||
Operating Income (Loss) | -21 | -3 | -2 | ||||||||
Other Income (Expense): | |||||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | -143 | -151 | -168 | ||||||||
Interest income (expense) affiliates, net | 1,227 | 1,091 | 976 | ||||||||
Equity in net earnings (losses) of subsidiaries | -710 | -1,039 | -1,188 | ||||||||
Other income (expense), net | -53 | 0 | -39 | ||||||||
Total Other Expense | 321 | -99 | -419 | ||||||||
Income (Loss) Before Income Taxes | 300 | -102 | -421 | ||||||||
Income Tax Benefit (Expense) | 14 | -7 | -1 | ||||||||
Net income (loss) | -422 | ||||||||||
Net Income (Loss) | 314 | -109 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -183 | 10 | 106 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 131 | -99 | -316 | ||||||||
Level 3 Financing, Inc. | |||||||||||
Condensed Consolidating Financial Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Network Access Costs | 0 | 0 | 0 | ||||||||
Network Related Expenses | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Depreciation and Amortization | 0 | 0 | 0 | ||||||||
Selling, General and Administrative Expenses | 2 | 1 | 1 | ||||||||
Total Costs and Expenses | 2 | 1 | 1 | ||||||||
Operating Income (Loss) | -2 | -1 | -1 | ||||||||
Other Income (Expense): | |||||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | -492 | -497 | -535 | ||||||||
Interest income (expense) affiliates, net | 1,827 | 1,706 | 1,598 | ||||||||
Equity in net earnings (losses) of subsidiaries | -2,047 | -2,164 | -2,066 | ||||||||
Other income (expense), net | 0 | -85 | -184 | ||||||||
Total Other Expense | -712 | -1,040 | -1,187 | ||||||||
Income (Loss) Before Income Taxes | -714 | -1,041 | -1,188 | ||||||||
Income Tax Benefit (Expense) | 4 | 2 | 0 | ||||||||
Net income (loss) | -1,188 | ||||||||||
Net Income (Loss) | -710 | -1,039 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 10 | 106 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -710 | -1,029 | -1,082 | ||||||||
Level 3 Communications, LLC | |||||||||||
Condensed Consolidating Financial Information | |||||||||||
Revenue | 3,073 | 2,825 | 2,657 | ||||||||
Network Access Costs | 1,177 | 1,068 | 996 | ||||||||
Network Related Expenses | 762 | 753 | 741 | ||||||||
Costs and Expenses: | |||||||||||
Depreciation and Amortization | 277 | 289 | 260 | ||||||||
Selling, General and Administrative Expenses | 735 | 791 | 818 | ||||||||
Total Costs and Expenses | 2,951 | 2,901 | 2,815 | ||||||||
Operating Income (Loss) | 122 | -76 | -158 | ||||||||
Other Income (Expense): | |||||||||||
Interest Income | 0 | 0 | 1 | ||||||||
Interest expense | -2 | -3 | -3 | ||||||||
Interest income (expense) affiliates, net | -2,890 | -2,679 | -2,233 | ||||||||
Equity in net earnings (losses) of subsidiaries | 663 | 550 | 92 | ||||||||
Other income (expense), net | 7 | 4 | 6 | ||||||||
Total Other Expense | -2,222 | -2,128 | -2,137 | ||||||||
Income (Loss) Before Income Taxes | -2,100 | -2,204 | -2,295 | ||||||||
Income Tax Benefit (Expense) | -1 | 0 | -4 | ||||||||
Net income (loss) | -2,299 | ||||||||||
Net Income (Loss) | -2,101 | -2,204 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | 0 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -2,101 | -2,204 | -2,299 | ||||||||
Other Non-Guarantor Subsidiaries | |||||||||||
Condensed Consolidating Financial Information | |||||||||||
Revenue | 3,918 | 3,734 | 3,975 | ||||||||
Network Access Costs | 1,566 | 1,649 | 1,854 | ||||||||
Network Related Expenses | 484 | 461 | 508 | ||||||||
Costs and Expenses: | |||||||||||
Depreciation and Amortization | 531 | 511 | 489 | ||||||||
Selling, General and Administrative Expenses | 423 | 367 | 388 | ||||||||
Total Costs and Expenses | 3,004 | 2,988 | 3,239 | ||||||||
Operating Income (Loss) | 914 | 746 | 736 | ||||||||
Other Income (Expense): | |||||||||||
Interest Income | 1 | 0 | 1 | ||||||||
Interest expense | -17 | 2 | -27 | ||||||||
Interest income (expense) affiliates, net | -164 | -118 | -341 | ||||||||
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | ||||||||
Other income (expense), net | -76 | -7 | -1 | ||||||||
Total Other Expense | -256 | -123 | -368 | ||||||||
Income (Loss) Before Income Taxes | 658 | 623 | 368 | ||||||||
Income Tax Benefit (Expense) | 59 | -33 | -43 | ||||||||
Net income (loss) | 325 | ||||||||||
Net Income (Loss) | 717 | 590 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -183 | 10 | 16 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 534 | 600 | 341 | ||||||||
Eliminations | |||||||||||
Condensed Consolidating Financial Information | |||||||||||
Revenue | -214 | -246 | -256 | ||||||||
Network Access Costs | -214 | -246 | -248 | ||||||||
Network Related Expenses | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Depreciation and Amortization | 0 | 0 | 0 | ||||||||
Selling, General and Administrative Expenses | 0 | 0 | -8 | ||||||||
Total Costs and Expenses | -214 | -246 | -256 | ||||||||
Operating Income (Loss) | 0 | 0 | 0 | ||||||||
Other Income (Expense): | |||||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income (expense) affiliates, net | 0 | 0 | 0 | ||||||||
Equity in net earnings (losses) of subsidiaries | 2,094 | 2,653 | 3,162 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Total Other Expense | 2,094 | 2,653 | 3,162 | ||||||||
Income (Loss) Before Income Taxes | 2,094 | 2,653 | 3,162 | ||||||||
Income Tax Benefit (Expense) | 0 | 0 | 0 | ||||||||
Net income (loss) | 3,162 | ||||||||||
Net Income (Loss) | 2,094 | 2,653 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 183 | -20 | -122 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $2,277 | $2,633 | $3,040 |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $580 | $631 | $979 | $918 | $918 | |
Restricted cash and securities | 7 | 7 | ||||
Receivables, less allowances for doubtful accounts | 737 | 673 | ||||
Due from affiliates | 0 | 0 | ||||
Other | 165 | 143 | ||||
Total Current Assets | 1,489 | 1,454 | ||||
Property, Plant and Equipment, net | 9,860 | 8,240 | ||||
Restricted Cash and Securities | 20 | 23 | ||||
Goodwill and Other Intangibles Assets, net | 9,103 | 2,782 | ||||
Investment in Subsidiaries | 0 | 0 | ||||
Other Assets, net | 475 | 375 | ||||
Total Assets | 20,947 | 12,874 | ||||
Liabilities: | ||||||
Accounts payable | 664 | 625 | ||||
Current portion of long-term debt | 349 | 31 | ||||
Accrued payroll and employee benefits | 273 | 209 | ||||
Accrued interest | 174 | 160 | ||||
Current portion of deferred revenue | 287 | 253 | ||||
Due to affiliates | 0 | 0 | ||||
Other | 167 | 168 | ||||
Total Current Liabilities | 1,914 | 1,446 | ||||
Long-Term Debt, less current portion | 10,984 | 8,331 | ||||
Deferred Revenue, less current portion | 921 | 906 | ||||
Other Liabilities | 765 | 780 | ||||
Commitments and Contingencies | 0 | 0 | ||||
Stockholders' Equity (Deficit) | 6,363 | 1,411 | 1,171 | 1,193 | ||
Total Liabilities and Stockholders’ Equity | 20,947 | 12,874 | ||||
Level 3 Communications, Inc. | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 7 | 8 | 253 | 2 | ||
Restricted cash and securities | 0 | 0 | ||||
Receivables, less allowances for doubtful accounts | 0 | 0 | ||||
Due from affiliates | 14,522 | 15,507 | ||||
Other | 2 | 2 | ||||
Total Current Assets | 14,531 | 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 | 16,686 | 10,039 | ||||
Other Assets, net | 28 | 10 | ||||
Total Assets | 31,248 | 25,569 | ||||
Liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Current portion of long-term debt | 333 | 0 | ||||
Accrued payroll and employee benefits | 0 | 0 | ||||
Accrued interest | 12 | 30 | ||||
Current portion of deferred revenue | 0 | 0 | ||||
Due to affiliates | 0 | 0 | ||||
Other | 0 | 0 | ||||
Total Current Liabilities | 345 | 30 | ||||
Long-Term Debt, less current portion | 900 | 1,370 | ||||
Deferred Revenue, less current portion | 0 | 0 | ||||
Other Liabilities | 16 | 15 | ||||
Stockholders' Equity (Deficit) | 29,987 | 24,154 | ||||
Total Liabilities and Stockholders’ Equity | 31,248 | 25,569 | ||||
Level 3 Financing, Inc. | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 5 | 6 | 5 | 6 | ||
Restricted cash and securities | 0 | 0 | ||||
Receivables, less allowances for doubtful accounts | 0 | 0 | ||||
Due from affiliates | 21,270 | 16,886 | ||||
Other | 21 | 15 | ||||
Total Current Assets | 21,296 | 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 | 14,777 | 27,014 | ||||
Other Assets, net | 129 | 113 | ||||
Total Assets | 36,202 | 44,034 | ||||
Liabilities: | ||||||
Accounts payable | 0 | 2 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Accrued payroll and employee benefits | 0 | 0 | ||||
Accrued interest | 158 | 129 | ||||
Current portion of deferred revenue | 0 | 0 | ||||
Due to affiliates | 0 | 0 | ||||
Other | 2 | 13 | ||||
Total Current Liabilities | 160 | 144 | ||||
Long-Term Debt, less current portion | 9,893 | 6,905 | ||||
Deferred Revenue, less current portion | 0 | 0 | ||||
Other Liabilities | 24 | 27 | ||||
Stockholders' Equity (Deficit) | 26,125 | 36,958 | ||||
Total Liabilities and Stockholders’ Equity | 36,202 | 44,034 | ||||
Level 3 Communications, LLC | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 307 | 347 | 386 | 618 | ||
Restricted cash and securities | 1 | 1 | ||||
Receivables, less allowances for doubtful accounts | 34 | 79 | ||||
Due from affiliates | 0 | 0 | ||||
Other | 45 | 47 | ||||
Total Current Assets | 387 | 474 | ||||
Property, Plant and Equipment, net | 3,152 | 3,028 | ||||
Restricted Cash and Securities | 16 | 18 | ||||
Goodwill and Other Intangibles Assets, net | 373 | 395 | ||||
Investment in Subsidiaries | 3,729 | 3,735 | ||||
Other Assets, net | 9 | 11 | ||||
Total Assets | 7,666 | 7,661 | ||||
Liabilities: | ||||||
Accounts payable | 215 | 42 | ||||
Current portion of long-term debt | 3 | 3 | ||||
Accrued payroll and employee benefits | 174 | 171 | ||||
Accrued interest | 0 | 0 | ||||
Current portion of deferred revenue | 118 | 131 | ||||
Due to affiliates | 34,401 | 32,165 | ||||
Other | 62 | 74 | ||||
Total Current Liabilities | 34,973 | 32,586 | ||||
Long-Term Debt, less current portion | 16 | 17 | ||||
Deferred Revenue, less current portion | 617 | 603 | ||||
Other Liabilities | 125 | 135 | ||||
Stockholders' Equity (Deficit) | -28,065 | -25,680 | ||||
Total Liabilities and Stockholders’ Equity | 7,666 | 7,661 | ||||
Other Non-Guarantor Subsidiaries | ||||||
Current Assets: | ||||||
Cash and cash equivalents | 261 | 270 | 335 | 292 | ||
Restricted cash and securities | 6 | 6 | ||||
Receivables, less allowances for doubtful accounts | 703 | 594 | ||||
Due from affiliates | 0 | 0 | ||||
Other | 97 | 79 | ||||
Total Current Assets | 1,067 | 949 | ||||
Property, Plant and Equipment, net | 6,708 | 5,212 | ||||
Restricted Cash and Securities | 1 | 2 | ||||
Goodwill and Other Intangibles Assets, net | 8,730 | 2,387 | ||||
Investment in Subsidiaries | 0 | 0 | ||||
Other Assets, net | 309 | 241 | ||||
Total Assets | 16,815 | 8,791 | ||||
Liabilities: | ||||||
Accounts payable | 449 | 581 | ||||
Current portion of long-term debt | 13 | 28 | ||||
Accrued payroll and employee benefits | 99 | 38 | ||||
Accrued interest | 4 | 1 | ||||
Current portion of deferred revenue | 169 | 122 | ||||
Due to affiliates | 1,391 | 228 | ||||
Other | 103 | 81 | ||||
Total Current Liabilities | 2,228 | 1,079 | ||||
Long-Term Debt, less current portion | 175 | 39 | ||||
Deferred Revenue, less current portion | 304 | 303 | ||||
Other Liabilities | 600 | 603 | ||||
Stockholders' Equity (Deficit) | 13,508 | 6,767 | ||||
Total Liabilities and Stockholders’ Equity | 16,815 | 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 | -35,792 | -32,393 | ||||
Other | 0 | 0 | ||||
Total Current Assets | -35,792 | -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 | -35,192 | -40,788 | ||||
Other Assets, net | 0 | 0 | ||||
Total Assets | -70,984 | -73,181 | ||||
Liabilities: | ||||||
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 | -35,792 | -32,393 | ||||
Other | 0 | 0 | ||||
Total Current Liabilities | -35,792 | -32,393 | ||||
Long-Term Debt, less current portion | 0 | 0 | ||||
Deferred Revenue, less current portion | 0 | 0 | ||||
Other Liabilities | 0 | 0 | ||||
Stockholders' Equity (Deficit) | -35,192 | -40,788 | ||||
Total Liabilities and Stockholders’ Equity | ($70,984) | ($73,181) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Financial Information | |||
Net Cash Provided by (Used in) Operating Activities | $1,161 | $713 | $578 |
Cash Flows from Investing Activities: | |||
Capital expenditures | -910 | -760 | -743 |
Increase (Decrease) in Restricted Cash and Investments | -10 | 13 | 20 |
Proceeds from sale of property, plant and equipment and other assets | 3 | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | -167 | 0 | 0 |
Other | -2 | 2 | -2 |
Net Cash Used in Investing Activities | -1,086 | -745 | -725 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | 589 | 1,502 | 4,504 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -671 | -1,796 | -4,302 |
Proceeds from Stock Options Exercised | 0 | 0 | 5 |
Increase (decrease) due from affiliates, net | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | -82 | -294 | 207 |
Effect of Exchange Rates on Cash and Cash Equivalents | -44 | -22 | 1 |
Net Change in Cash and Cash Equivalents | -51 | -348 | 61 |
Cash and Cash Equivalents at Beginning of Year | 631 | 979 | 918 |
Cash and Cash Equivalents at End of Year | 580 | 631 | 979 |
Level 3 Communications, Inc. | |||
Condensed Consolidating Financial Information | |||
Net Cash Provided by (Used in) Operating Activities | -178 | -169 | -165 |
Cash Flows from Investing Activities: | |||
Capital expenditures | 0 | 0 | 0 |
Increase (Decrease) in Restricted Cash and Investments | 0 | 9 | 6 |
Proceeds from sale of property, plant and equipment and other assets | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | -474 | ||
Other | 0 | 0 | 0 |
Net Cash Used in Investing Activities | -474 | 9 | 6 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | 590 | 0 | 293 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -647 | -173 | 0 |
Proceeds from Stock Options Exercised | 5 | ||
Increase (decrease) due from affiliates, net | 708 | 88 | 112 |
Net Cash Provided by (Used in) Financing Activities | 651 | -85 | 410 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 | 0 |
Net Change in Cash and Cash Equivalents | -1 | -245 | 251 |
Cash and Cash Equivalents at Beginning of Year | 8 | 253 | |
Cash and Cash Equivalents at End of Year | 7 | 8 | 253 |
Level 3 Financing, Inc. | |||
Condensed Consolidating Financial Information | |||
Net Cash Provided by (Used in) Operating Activities | -458 | -557 | -520 |
Cash Flows from Investing Activities: | |||
Capital expenditures | 0 | 0 | 0 |
Increase (Decrease) in Restricted Cash and Investments | 0 | 0 | 0 |
Proceeds from sale of property, plant and equipment and other assets | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Other | 0 | 0 | 0 |
Net Cash Used in Investing Activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | 0 | 1,502 | 4,211 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | 0 | -1,586 | -4,161 |
Proceeds from Stock Options Exercised | 0 | ||
Increase (decrease) due from affiliates, net | 457 | 642 | 469 |
Net Cash Provided by (Used in) Financing Activities | 457 | 558 | 519 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 | 0 |
Net Change in Cash and Cash Equivalents | -1 | 1 | -1 |
Cash and Cash Equivalents at Beginning of Year | 6 | 5 | |
Cash and Cash Equivalents at End of Year | 5 | 6 | 5 |
Level 3 Communications, LLC | |||
Condensed Consolidating Financial Information | |||
Net Cash Provided by (Used in) Operating Activities | 625 | 710 | 140 |
Cash Flows from Investing Activities: | |||
Capital expenditures | -362 | -312 | -276 |
Increase (Decrease) in Restricted Cash and Investments | 2 | -1 | 2 |
Proceeds from sale of property, plant and equipment and other assets | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Other | 0 | 1 | 0 |
Net Cash Used in Investing Activities | -360 | -312 | -274 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | 0 | 0 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | 0 | -4 | 0 |
Proceeds from Stock Options Exercised | 0 | ||
Increase (decrease) due from affiliates, net | -305 | -433 | -98 |
Net Cash Provided by (Used in) Financing Activities | -305 | -437 | -98 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 | 0 |
Net Change in Cash and Cash Equivalents | -40 | -39 | -232 |
Cash and Cash Equivalents at Beginning of Year | 347 | 386 | |
Cash and Cash Equivalents at End of Year | 307 | 347 | 386 |
Other Non-Guarantor Subsidiaries | |||
Condensed Consolidating Financial Information | |||
Net Cash Provided by (Used in) Operating Activities | 1,172 | 729 | 1,123 |
Cash Flows from Investing Activities: | |||
Capital expenditures | -548 | -448 | -467 |
Increase (Decrease) in Restricted Cash and Investments | -12 | 5 | 12 |
Proceeds from sale of property, plant and equipment and other assets | 3 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 307 | ||
Other | -2 | 1 | -2 |
Net Cash Used in Investing Activities | -252 | -442 | -457 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | -1 | 0 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | -24 | -33 | -141 |
Proceeds from Stock Options Exercised | 0 | ||
Increase (decrease) due from affiliates, net | -860 | -297 | -483 |
Net Cash Provided by (Used in) Financing Activities | -885 | -330 | -624 |
Effect of Exchange Rates on Cash and Cash Equivalents | -44 | -22 | 1 |
Net Change in Cash and Cash Equivalents | -9 | -65 | 43 |
Cash and Cash Equivalents at Beginning of Year | 270 | 335 | |
Cash and Cash Equivalents at End of Year | 261 | 270 | 335 |
Eliminations | |||
Condensed Consolidating Financial Information | |||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | 0 |
Cash Flows from Investing Activities: | |||
Capital expenditures | 0 | 0 | 0 |
Increase (Decrease) in Restricted Cash and Investments | 0 | 0 | 0 |
Proceeds from sale of property, plant and equipment and other assets | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Other | 0 | 0 | 0 |
Net Cash Used in Investing Activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Long-term debt borrowings, net of issuance costs | 0 | 0 | 0 |
Payments on and repurchases of long-term debt, including current portions and refinancing costs | 0 | 0 | 0 |
Proceeds from Stock Options Exercised | 0 | ||
Increase (decrease) due from affiliates, net | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | 0 |
Effect of Exchange Rates on Cash and Cash Equivalents | 0 | 0 | 0 |
Net Change in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents at Beginning of Year | 0 | 0 | |
Cash and Cash Equivalents at End of Year | $0 | $0 | $0 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Oct. 04, 2013 | Dec. 31, 2011 | Aug. 12, 2014 |
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Revenue | $1,914 | $1,629 | $1,625 | $1,609 | $1,602 | $1,569 | $1,565 | $1,577 | $6,777 | $6,313 | $6,376 | ||||
Network Access Costs | 695 | 607 | 613 | 614 | 618 | 608 | 616 | 629 | 2,529 | 2,471 | 2,602 | ||||
Network Related Expenses | 345 | 307 | 302 | 292 | 298 | 314 | 300 | 302 | 1,246 | 1,214 | 1,249 | ||||
Operating Income (Loss) | 231 | 262 | 256 | 264 | 219 | 152 | 140 | 155 | 1,013 | 666 | 575 | ||||
Interest Income | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 2 | ||||
Interest Expense | -195 | -159 | -149 | -151 | -148 | -165 | -167 | -169 | -654 | -649 | -733 | ||||
Net Income (Loss) | 66 | 85 | 51 | 112 | 14 | -21 | -24 | -78 | 314 | -109 | -422 | ||||
Earnings Per Share, Basic | $0.22 | $0.36 | $0.21 | $0.48 | $0.06 | ($0.09) | ($0.11) | ($0.36) | $1.23 | ($0.49) | ($1.96) | ||||
Earnings Per Share, Diluted | $0.21 | $0.35 | $0.21 | $0.47 | $0.06 | ($0.09) | ($0.11) | ($0.36) | $1.21 | ($0.49) | ($1.96) | ||||
Selling, General and Administrative Expenses | 393 | 266 | 267 | 255 | 263 | 292 | 310 | 297 | 1,181 | 1,162 | 1,201 | ||||
Total Costs and Expenses | 1,683 | 1,367 | 1,369 | 1,345 | 1,383 | 1,417 | 1,425 | 1,422 | 5,764 | 5,647 | 5,801 | ||||
Depreciation expense | 713 | 727 | 659 | ||||||||||||
Depreciation and Amortization | 250 | 187 | 187 | 184 | 204 | 203 | 199 | 194 | 808 | 800 | 749 | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 17 | ||||||||||||||
Loss on modification and extinguishment of debt, net | -53 | 0 | 0 | 0 | -67 | -17 | 0 | 0 | -53 | -84 | -160 | ||||
Business Combination, Integration Related Costs | 70 | 81 | |||||||||||||
Other, net | -20 | -11 | -44 | 6 | 9 | 23 | 14 | -50 | -69 | -4 | -58 | ||||
Total Other Expense | -268 | -169 | -193 | -145 | -206 | -159 | -153 | -219 | -775 | -737 | -949 | ||||
Income (Loss) Before Income Taxes | -37 | 93 | 63 | 119 | 13 | -7 | -13 | -64 | 238 | -71 | -374 | ||||
Income Tax Expense (Benefit) | -103 | 8 | 12 | 7 | -1 | 14 | 11 | 14 | -76 | 38 | 48 | ||||
Recognized Income Tax Benefit | 100 | ||||||||||||||
Foreign Currency Transaction Gain (Loss), before Tax | 34 | 22 | |||||||||||||
Foreign Currency Exchange Rate, Translation | 6.3 | 6.3 | 4.3 | ||||||||||||
Foreign Currency Exchange Rate, Remeasurement | 10.6 | ||||||||||||||
Property, Plant and Equipment, Gross | 19,489 | 17,329 | 19,489 | 17,329 | |||||||||||
Long-term Debt, Gross | 11,366 | 8,392 | 11,366 | 8,392 | |||||||||||
Asset Retirement Obligation, Revision of Estimate | 7 | 0 | |||||||||||||
Tranche B-II Term Loans and Senior Notes [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | 53 | ||||||||||||||
Senior Notes 11 Point 875 Percent Due 2019 [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Debt instrument, stated interest rate (as a percent) | 11.88% | 11.88% | 11.88% | ||||||||||||
Long-term Debt, Gross | 0 | 605 | 0 | 605 | |||||||||||
TrancheB2022TermLoanTotal [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Long-term Debt, Gross | 2,000 | 2,000 | |||||||||||||
Senior Notes 5.375percent Due 2022 [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 1,000 | 1,000 | 1,000 | ||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.38% | 5.38% | |||||||||||||
TrancheBII2019TermLoan [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | 10 | ||||||||||||||
Senior Notes 10 Point 0 Percent Due 2018 [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | 56 | ||||||||||||||
Debt instrument, stated interest rate (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||||
Floating Rate Senior Notes due 2015 [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | 1 | ||||||||||||||
Debt instrument, stated interest rate (as a percent) | 3.85% | 3.85% | 4.20% | ||||||||||||
Tranche A Term Loan | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | -9 | ||||||||||||||
Tranche B II and Tranche B III Term Loans | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | -50 | -67 | |||||||||||||
Senior Notes due 2017 (8.75%) | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | -40 | ||||||||||||||
Debt instrument, stated interest rate (as a percent) | 8.75% | ||||||||||||||
Convertible Senior Notes due 2013 (15.0%) | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Debt instrument, stated interest rate (as a percent) | 15.00% | 15.00% | 15.00% | ||||||||||||
Senior Notes due 2014 (9.25%) | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | -22 | ||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.25% | ||||||||||||||
Asset Retirement Obligation Change in Estimate | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Selling, General and Administrative Expenses | 47 | ||||||||||||||
Total Costs and Expenses | 49 | ||||||||||||||
Depreciation and Amortization | 2 | ||||||||||||||
Property, Plant and Equipment, Gross | 24 | ||||||||||||||
Level 3 Escrow II, Inc. [Member] | Senior Notes 5.375percent Due 2022 [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 1,000 | ||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Revenue | 0 | 0 | 0 | ||||||||||||
Network Access Costs | 0 | 0 | 0 | ||||||||||||
Network Related Expenses | 0 | 0 | 0 | ||||||||||||
Operating Income (Loss) | -2 | -1 | -1 | ||||||||||||
Interest Income | 0 | 0 | 0 | ||||||||||||
Interest Expense | -492 | -497 | -535 | ||||||||||||
Net Income (Loss) | -710 | -1,039 | |||||||||||||
Selling, General and Administrative Expenses | 2 | 1 | 1 | ||||||||||||
Total Costs and Expenses | 2 | 1 | 1 | ||||||||||||
Depreciation and Amortization | 0 | 0 | 0 | ||||||||||||
Total Other Expense | -712 | -1,040 | -1,187 | ||||||||||||
Income (Loss) Before Income Taxes | -714 | -1,041 | -1,188 | ||||||||||||
Income Tax Expense (Benefit) | -4 | -2 | 0 | ||||||||||||
Guarantor Subsidiaries [Member] | TrancheB2022TermLoanTotal [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Long-term Debt, Gross | 2,000 | 2,000 | |||||||||||||
Guarantor Subsidiaries [Member] | TrancheBII2019TermLoan [Member] | |||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Loss on modification and extinguishment of debt, net | $10 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2015 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 04, 2011 | Jan. 29, 2015 |
Subsequent Events | ||||||||||||||||
Cash and cash equivalents | $580 | $631 | $580 | $631 | $979 | $918 | $918 | |||||||||
Other, net | -20 | -11 | -44 | 6 | 9 | 23 | 14 | -50 | -69 | -4 | -58 | |||||
Loss on modification and extinguishment of debt, net | -53 | 0 | 0 | 0 | -67 | -17 | 0 | 0 | -53 | -84 | -160 | |||||
Convertible Senior Notes due 2013 (15.0%) | ||||||||||||||||
Subsequent Events | ||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||||
Senior Notes due 2019 (9.375%) | ||||||||||||||||
Subsequent Events | ||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.38% | 9.38% | 9.38% | |||||||||||||
Level 3 Financing [Member] | Senior Notes due 2019 (9.375%) | ||||||||||||||||
Subsequent Events | ||||||||||||||||
Debt Instrument, Face Amount | 500 | |||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.38% | 9.38% | ||||||||||||||
Level 3 Financing [Member] | Subsequent Event [Member] | Senior Notes 5point 625Percent Due 2023 [Member] | ||||||||||||||||
Subsequent Events | ||||||||||||||||
Debt Instrument, Face Amount | 500 | |||||||||||||||
Debt instrument, stated interest rate (as a percent) | 5.63% | |||||||||||||||
Level 3 Financing [Member] | Subsequent Event [Member] | Senior Notes due 2019 (9.375%) | ||||||||||||||||
Subsequent Events | ||||||||||||||||
Debt Instrument, Face Amount | 500 | |||||||||||||||
Debt instrument, stated interest rate (as a percent) | 9.38% | |||||||||||||||
Loss on modification and extinguishment of debt, net | 40 | |||||||||||||||
Level 3 Communications, Inc. | ||||||||||||||||
Subsequent Events | ||||||||||||||||
Cash and cash equivalents | $7 | $8 | $7 | $8 | $253 | $2 |