Level 3 Parent (LVLT) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2018	Aug. 09, 2018
Document and Entity Information
Entity Registrant Name	LEVEL 3 PARENT, LLC
Entity Central Index Key	794,323
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
OPERATING REVENUES
Operating revenues	$ 2,052		$ 4,139
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	980		1,978
Selling, general and administrative	388		732
Operating expenses - affiliates	55		108
Depreciation and amortization	433		864
Total operating expenses	1,856		3,682
OPERATING INCOME	196		457
OTHER INCOME (EXPENSE)
Interest income	0		1
Interest income - affiliate	16		32
Interest expense	(124)		(244)
Loss on modification and extinguishment of debt	0		0
Other (expense) income, net	(4)		2
Total other expense, net	(112)		(209)
INCOME BEFORE INCOME TAX EXPENSE	84		248
Income tax expense	(44)		(146)
NET INCOME	40		102
Predecessor
OPERATING REVENUES
Operating revenues		$ 2,062		$ 4,110
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		1,035		2,086
Selling, general and administrative		367		731
Operating expenses - affiliates		0		0
Depreciation and amortization		307		603
Total operating expenses		1,709		3,420
OPERATING INCOME		353		690
OTHER INCOME (EXPENSE)
Interest income		3		5
Interest income - affiliate		0		0
Interest expense		(131)		(265)
Loss on modification and extinguishment of debt		0		(44)
Other (expense) income, net		(2)		2
Total other expense, net		(130)		(302)
INCOME BEFORE INCOME TAX EXPENSE		223		388
Income tax expense		(69)		(139)
NET INCOME		154		249
Non-Affiliate Revenue
OPERATING REVENUES
Operating revenues	2,025		4,087
Non-Affiliate Revenue | Predecessor
OPERATING REVENUES
Operating revenues		2,062		4,110
Affiliate Revenues
OPERATING REVENUES
Operating revenues	$ 27		$ 52
Affiliate Revenues | Predecessor
OPERATING REVENUES
Operating revenues		$ 0		$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
NET INCOME	$ 40		$ 102
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments, net of $44, $30, ($29) and ($37) tax	(235)		(163)
Defined benefit pension plan adjustments, net of $0, $0, $0 and $0 tax	0		0
Other comprehensive (loss) income, net of tax	(235)		(163)
COMPREHENSIVE (LOSS) INCOME	$ (195)		$ (61)
Predecessor
NET INCOME		$ 154		$ 249
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments, net of $44, $30, ($29) and ($37) tax		42		62
Defined benefit pension plan adjustments, net of $0, $0, $0 and $0 tax		(1)		0
Other comprehensive (loss) income, net of tax		41		62
COMPREHENSIVE (LOSS) INCOME		$ 195		$ 311

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Foreign currency translation adjustments, tax effect	$ 44	$ 30
Defined benefit pension plan adjustments, tax effect	0	0
Predecessor
Foreign currency translation adjustments, tax effect	(29)	(37)
Defined benefit pension plan adjustments, tax effect	$ 0	$ 0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 282	$ 297
Restricted cash and securities	5	5
Assets held for sale	15	140
Accounts receivable, less allowance of $9 and $3	744	748
Accounts receivable - affiliate	4	13
Note receivable - affiliate	1,825	1,825
Other	201	117
Total current assets	3,076	3,145
Property, plant and equipment, net of accumulated depreciation of $609 and $143	9,396	9,412
Restricted cash and securities	25	29
GOODWILL AND OTHER ASSETS
Goodwill	11,078	10,837
Deferred tax assets	483	426
Other, net	108	63
Total goodwill and other assets	20,055	20,549
TOTAL ASSETS	32,552	33,135
CURRENT LIABILITIES
Current maturities of long-term debt	13	8
Accounts payable	581	695
Accounts payable - affiliate	106	41
Accrued expenses and other liabilities
Income and other taxes	81	100
Salaries and benefits	199	136
Interest	94	109
Current portion of deferred revenue	285	260
Other	45	57
Total current liabilities	1,404	1,406
LONG-TERM DEBT	10,857	10,882
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	1,138	1,099
Deferred income taxes	202	212
Other	341	264
Total deferred revenue and other liabilities	1,681	1,575
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY
Member's equity	18,749	19,254
Accumulated other comprehensive (loss) income	(139)	18
Total member's equity	18,610	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY	32,552	33,135
Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	7,990	8,845
Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	$ 396	$ 378

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9	$ 3
Accumulated depreciation	$ 609	$ 143

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities:
NET INCOME	$ 102
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	864
Deferred income taxes	140
Share-based compensation	57
Loss on modification and extinguishment of debt	0
Net long-term debt issuance costs and premium amortization	(22)
Accrued interest on long-term debt, net	(15)
Other, net	6
Changes in current assets and liabilities:
Accounts receivable	(5)
Accounts payable	(100)
Deferred revenue	27
Other assets and liabilities	(53)
Other assets and liabilities, affiliate	17
Net cash provided by operating activities	1,018
INVESTING ACTIVITIES
Capital expenditures	(546)
Proceeds from sale of property, plant and equipment and other assets	119
Purchase of marketable securities	0
Net cash used in investing activities	(427)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	0
Payments of long-term debt	(3)
Distributions	(605)
Net cash used in financing activities	(608)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	(2)
Net decrease in cash, cash equivalents and restricted cash and securities	(19)
Cash, cash equivalents and restricted cash and securities at beginning of period	331
Cash, cash equivalents and restricted cash and securities at end of period	312
Supplemental cash flow information
Interest paid	270
Income taxes paid, net	$ 19
Predecessor
Cash Flows from Operating Activities:
NET INCOME		$ 249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		603
Deferred income taxes		119
Share-based compensation		87
Loss on modification and extinguishment of debt		44
Net long-term debt issuance costs and premium amortization		9
Accrued interest on long-term debt, net		(32)
Other, net		(7)
Changes in current assets and liabilities:
Accounts receivable		16
Accounts payable		(17)
Deferred revenue		50
Other assets and liabilities		(21)
Other assets and liabilities, affiliate		0
Net cash provided by operating activities		1,100
INVESTING ACTIVITIES
Capital expenditures		(696)
Proceeds from sale of property, plant and equipment and other assets		0
Purchase of marketable securities		(1,127)
Net cash used in investing activities		(1,823)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,615)
Distributions		0
Net cash used in financing activities		(46)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		2
Net decrease in cash, cash equivalents and restricted cash and securities		(767)
Cash, cash equivalents and restricted cash and securities at beginning of period		1,857
Cash, cash equivalents and restricted cash and securities at end of period		1,090
Supplemental cash flow information
Interest paid		282
Income taxes paid, net		$ 32

Consolidated Statements of Memb

Consolidated Statements of Member's/Stockholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	AOCI Attributable to Parent	Accumulated Deficit	Member Units	AOCI Attributable to Parent
MEMBER'S EQUITY
Cumulative effect of new accounting principle in period of adoption | Predecessor | Accounting Standards Update 2014-09						$ 0
Cumulative effect of new accounting principle in period of adoption | Predecessor | Accounting Standards Update 2018-02						0	$ 0
Balance at beginning of period (Predecessor) at Dec. 31, 2016						0	(387)
MEMBER'S EQUITY
Net income | Predecessor	$ 249				$ 249	0
Other comprehensive (loss) income | Predecessor	62						62
Purchase price accounting adjustments | Predecessor						0
Distributions to CenturyLink | Predecessor						0
Balance at end of period (Predecessor) at Jun. 30, 2017						0	(325)
Balance at beginning of period (Predecessor) at Dec. 31, 2016		$ 4	$ 19,800		(8,500)
Balance at beginning of period at Dec. 31, 2016				$ (387)
STOCKHOLDERS' EQUITY
Common stock issued under employee stock benefit plans and other | Predecessor			19
Share-based compensation | Predecessor			68
Balance at end of period (Predecessor) at Jun. 30, 2017	11,315	4	19,887		(8,251)
Balance at end of period at Jun. 30, 2017				(325)
MEMBER'S EQUITY
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2014-09					9	9
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02						(6)	6
Balance at beginning of period at Dec. 31, 2017						19,254	18
MEMBER'S EQUITY
Net income	102				0	102
Other comprehensive (loss) income	(163)						(163)
Purchase price accounting adjustments						(5)
Distributions to CenturyLink						(605)
Balance at end of period at Jun. 30, 2018						$ 18,749	$ (139)
Balance at beginning of period at Dec. 31, 2017	19,272	0	0	18	0
STOCKHOLDERS' EQUITY
Common stock issued under employee stock benefit plans and other			0
Share-based compensation			0
Balance at end of period at Jun. 30, 2018	$ 18,610	$ 0	$ 0	$ (139)	$ 0

Background

Background	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Background	(1) Background General We are an international facilities-based communications company engaged in providing of a broad array of integrated communications services to our business customers. We created our communications network by constructing our own assets and through a combination of purchasing other companies and purchasing or leasing facilities from others. We designed our network to provide communications services that employ and take advantage of rapidly improving underlying optical, Internet Protocol, computing and storage technologies. On October 31, 2016, we entered into an agreement and plan of merger (the "Merger Agreement") with CenturyLink, Inc., a Louisiana corporation ("CenturyLink"), Wildcat Merger Sub 1 LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of CenturyLink ("Merger Sub 1"), and WWG Merger Sub LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of CenturyLink ("Merger Sub 2"), pursuant to which, effective November 1, 2017, we were acquired by CenturyLink in a cash and stock transaction, including the assumption of our debt (the "CenturyLink Merger"). See Note 2 - CenturyLink Merger . Basis of Presentation On November 1, 2017, we became a wholly owned subsidiary of CenturyLink. On the date of the acquisition, our assets and liabilities were recognized at CenturyLink's preliminary estimates of fair value. This revaluation has been reflected in our financial statements and, therefore, has resulted in a new basis of accounting for the successor period beginning on November 1, 2017. This new basis of accounting means that our financial statements for the successor periods are not comparable to our previously reported financial statements, including the predecessor period financial statements in this report. The consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. All significant intercompany accounts and transactions have been eliminated. Transactions with our non-consolidated affiliates (CenturyLink and its other subsidiaries, referred to herein as affiliates) have not been eliminated. As part of our consolidation policy, we consider our controlled subsidiaries, investments in businesses in which we are not the primary beneficiary or do not have effective control but have the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give us rights to economic risks or rewards of a legal entity. We do not have variable interests in a variable interest entity where we are required to consolidate the entity as the primary beneficiary. Due to exchange restrictions and other conditions, effective at the end of the third quarter of 2015, we deconsolidated our Venezuelan subsidiary and began accounting for our investment in our Venezuelan subsidiary using the cost method of accounting. The factors that led to our conclusions at the end of the third quarter of 2015 continued to exist through the second quarter of 2018. In conjunction with our acquisition on November 1, 2017, we changed the definitions we use to classify expenses as cost of services and products and selling, general and administrative, and as a result, we reclassified previously reported amounts to conform to the current period presentation. We revised our definitions so that our expense classifications are more consistent with the expense classifications used by our new ultimate parent company, CenturyLink. These revisions resulted in the reclassification of $47 million from depreciation and amortization to cost of services and products for the predecessor six months ended June 30, 2017 . Although we continued as a surviving corporation and legal entity after the acquisition, the accompanying consolidated statements of operations, comprehensive income, member's/stockholders' equity and cash flows are presented for two periods: predecessor and successor, which relates to the period preceding the acquisition and the period succeeding the acquisition. Our current definitions are as follows: • Cost of services and products (exclusive of depreciation and amortization) are expenses incurred in providing products and services to our customers. These expenses include: employee-related expenses directly attributable to operating and maintaining our network (such as salaries, wages, benefits and professional fees); facilities expenses (which are third-party telecommunications expenses we incur for using other carriers' networks to provide services to our customers); rents and utilities expenses; costs for universal service funds ("USF") (which are federal and state funds that are established to promote the availability of telecommunications services to all consumers at reasonable and affordable rates, among other things, and to which we are often required to contribute); taxes (such as property and other taxes); and other expenses directly related to our network. • Selling, general and administrative expenses are expenses incurred in selling products and services to our customers, corporate overhead and other operating expenses. These expenses include: employee-related expenses (such as salaries, wages, internal commissions, benefits and professional fees) directly attributable to selling products or services and employee-related expenses for administrative functions; marketing and advertising; taxes (such as state and local franchise taxes and sales and use taxes) and fees; external commissions; bad debt expense; and other selling, general and administrative expenses. Segments Our operations are integrated into and reported as part of the consolidated segment data of CenturyLink. CenturyLink's chief operating decision maker ("CODM") is our CODM but reviews our financial information on an aggregate basis only in connection with our quarterly and annual reports that we file with the Securities and Exchange Commission. Consequently, we do not provide our discrete financial information to the CODM on a regular basis. As such, we have one reportable segment. Income Taxes As of June 30, 2018 , we had not completed our accounting for the tax effects of the Tax Cuts and Jobs Act (the "Act"). which was signed into law and in late December 2017. In order to complete our accounting for the impact of the Act, we continue to obtain, analyze and interpret additional guidance as such guidance becomes available from the U.S. Treasury Department, the Internal Revenue Service (“IRS”), state taxing jurisdictions, the Financial Accounting Standards Board ("FASB"), and other standard-setting and regulatory bodies. New guidance or interpretations may materially impact our provision for income taxes in future periods. Additional information that is needed to complete the analysis but is currently unavailable includes, but is not limited to, the amount of earnings of foreign subsidiaries, the final determination of certain net deferred tax assets subject to remeasurement due to purchase accounting adjustments and other matters and the tax treatment of such provisions of the Act by various state tax authorities. We have provisionally recognized the tax impacts related to the re-measurement of deferred tax assets and liabilities. The ultimate impact may differ from our current provisional estimate due to additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the Act. The change from our current provisional estimates will be reflected in our future statements of operations and could be material. We expect to complete the accounting in the fourth quarter of 2018. The Act reduced the U.S. corporate income tax rate from a maximum of 35% to 21% for all C corporations, effective January 1, 2018, introduced further limitations on the deductibility of interest expense, made certain changes to capital expenditures and various other items, and imposed a one-time repatriation tax on certain earnings of certain foreign subsidiaries. In addition, the Tax Act introduces additional base-broadening measures, including Global Intangible Low-Taxed Income (“GILTI”) and the Base-Erosion Anti-Abuse Tax (“BEAT”). As a result of the reduction in the U.S. corporate income tax rate from 35% to 21%, we provisionally re-measured our net deferred tax assets at December 31, 2017 and recognized a tax expense of approximately $195 million in our consolidated statement of operations for the year ended December 31, 2017. During the first six months of 2018, we increased the tax expense from tax reform by $76 million due to changes in certain purchase accounting adjustments related to CenturyLink’s acquisition of us. During the second quarter of 2018, we continued to evaluate and analyze the tax impacts of the Act. While we have not finalized our analysis, we do not expect the provisions of the Act, exclusive of the rate reduction, to materially impact us in 2018. However, we cannot provide any assurance that, upon completion of our analysis, the impact will not be material or that there will not be material tax impacts in future years. Accordingly, we have not made any additional adjustments related to the Act in our financial statements. Because of our net operating loss carryforwards, we do not expect to experience a further material immediate reduction in the amount of cash income taxes paid by us. However, we anticipate that the provisions of the Act may reduce our cash income taxes in future years. Recently Adopted Accounting Pronouncements In the first quarter or 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers ”, ASU 2016-16, “ Intra-Entity Transfers of Assets Other Than Inventory ” and ASU 2018-02, “ Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ”. Each of these is described further below. Revenue Recognition On May 28, 2014, the FASB issued ASU 2014-09 which replaces virtually all existing generally accepted accounting principles on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. We adopted the new revenue recognition standard under the modified retrospective transition method. On January 1, 2018, we recorded a cumulative catch-up adjustment that increased our retained earnings by $9 million , net of $3 million of income taxes. Under ASU 2014-09, we are now deferring (i.e. capitalizing) incremental contract acquisition and fulfillment costs and are recognizing (i.e. amortizing) such costs over either the initial contract (plus and anticipated renewal contracts to which the costs relate) or the average customer life. Our deferred contract acquisition and fulfillment costs for our customers have average amortization periods of approximately 12 months to 60 months and are monitored every period to reflect any significant change in assumptions. We have material obligations to our customers in our indefeasible right of use arrangements, including certain long-term prepaid customer capacity arrangements. The majority of our indefeasible right of use arrangements are accounted for as operating leases. See Note 4 - Revenue Recognition for additional information. Comprehensive Income ASU 2018-02 provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. If an entity elects to reclassify the income tax effects of the Tax Cuts and Jobs Act, the amount of that reclassification shall include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income. The effect of the change in the U.S. federal corporate income tax rate on gross valuation allowances that were originally charged to income from continuing operations shall not be included. ASU 2018-02 is effective January 1, 2019, but early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We early adopted ASU 2018-02 in the first quarter of 2018 and applied it in the period of adoption. The adoption of ASU 2018-02 resulted in a $6 million decrease to member's equity and increase to accumulated other comprehensive income. See Note 11 - Accumulated Other Comprehensive Loss for additional information. Income Taxes On October 24, 2016, FASB issued ASU 2016-16, “ Intra-Entity Transfers of Assets Other Than Inventory” ("ASU 2016-16") . ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among our subsidiaries. After adoption of this ASU, the income tax effects associated with these asset transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or over the remaining useful life of the asset. We adopted ASU 2016-16 on January 1, 2018. The adoption of ASU 2016-16 did not have a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements Goodwill Impairment On January 26, 2017, the FASB issued ASU 2017-04, “ Simplifying the Test for Goodwill Impairment ” (“ASU 2017-04”). ASU 2017-04 simplifies the impairment testing for goodwill by changing the measurement for goodwill impairment. Under current rules, we are required to compute the implied fair value of goodwill to measure the impairment amount if the carrying value of a reporting unit exceeds its fair value. Under ASU 2017-04, the goodwill impairment charge will equal the excess of the reporting unit carrying value above its fair value, limited to the amount of goodwill assigned to the reporting unit. We are required to adopt the provisions of ASU 2017-04 for any goodwill impairment tests, including our required annual test, occurring after January 1, 2020, but have the option to early adopt for any impairment test that we are required to perform. We have not determined if we will elect to early adopt the provisions of ASU 2017-04. The provisions of ASU 2017-04 would not have affected our last goodwill impairment assessment, but no assurance can be provided that the simplified testing methodology will not affect our goodwill impairment assessment in the future. Financial Instruments On June 16, 2016, the FASB issued ASU 2016-13, " Measurement of Credit Losses on Financial Instruments " ("ASU 2016-13"). The primary impact of ASU 2016-13 for us is a change in the model for the recognition of credit losses related to our financial instruments from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires our management team to estimate the total credit losses expected on the portfolio of financial instruments. We are currently reviewing the requirements of the standard and evaluating the impact on our consolidated financial statements. We are required to adopt the provisions of ASU 2016-13 effective January 1, 2020 but could elect to early adopt the provisions as of January 1, 2019. We expect to recognize the impacts of adopting ASU 2016-13 through a cumulative adjustment to retained earnings as of the date of adoption. As of the date of this report, we have not yet determined the date we will adopt ASU 2016-13. Leases On February 25, 2016, the FASB issued ASU 2016-02, “ Leases ” (“ASU 2016-02”). The core principle of ASU 2016-02 will require lessees to present right-of-use assets and lease liabilities on their balance sheets for operating leases, which are currently not reflected on their balance sheets. ASU 2016-02 is effective for annual and interim periods beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. Upon adoption of ASU 2016-02, we are required to recognize and measure leases at the beginning of the earliest period presented in our consolidated financial statements using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. On January 25, 2018, the FASB issued ASU 2018-01, “ Leases: Land Easement Practical Expedient for Transition to ASU 2016-02" . ASU 2018-01permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASC 2016-02 and that were not previously accounted for as leases. We plan to adopt ASU 2018-01 at the same time we adopt ASU 2016-02. On July 30, 2018, the FASB issued ASU 2018-11, " Leases: Targeted Improvements ". ("ASU 2018-11") provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We have not yet determined whether we will use the newly permitted adoption method. We are in the process of implementing a new lease administrative and accounting system. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019 and the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded. Although we believe it is premature as of the date of this report to provide any estimate of the impact of adopting ASU 2016-02, we do expect that it will have a material impact on our consolidated financial statements.

CenturyLink Merger

CenturyLink Merger	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
CenturyLink Merger	(2) CenturyLink Merger On November 1, 2017 , CenturyLink acquired us through successive merger transactions, including a merger of Level 3 with and into a merger subsidiary, which survived such merger as CenturyLink's indirect wholly-owned subsidiary under the name of Level 3 Parent, LLC. As of June 30, 2018 , the preliminary estimated amount of aggregate consideration was $19.628 billion . The U.S. Department of Justice approved the acquisition subject to conditions of a consent decree on October 2, 2017, which requires the combined company to divest (i) certain Level 3 metro network assets in the markets located in Albuquerque, New Mexico; Boise, Idaho; and Tucson, Arizona and (ii) 24 strands of dark fiber connecting 30 specified city-pairs across the United States in the form of an indefeasible right of use agreement. On January 22, 2018, we entered into an agreement to sell certain intangible assets for $68 million . During the second quarter of 2018, we sold network assets in Boise, Idaho and Albuquerque, New Mexico that we were required to divest as a condition of the merger. The proceeds from these sales were included in the proceeds from sale of property, plant and equipment in our consolidated statements of cash flows. No gain or loss was recognized with these transactions. All of the metro network assets were classified as assets held for sale on our consolidated balance sheet as of December 31, 2017 . The Tucson, Arizona assets continue to be classified as assets held for sale on our consolidated balance sheet as of June 30, 2018 . Our results of operations have been included in the consolidated results of operations of CenturyLink beginning November 1, 2017. CenturyLink recognized our assets and liabilities based on CenturyLink’s preliminary estimates of the fair value of the acquired tangible and intangible assets and assumed liabilities of us as of November 1, 2017, the consummation date of the acquisition, with the excess aggregate consideration recorded as goodwill. The final determination of the allocation of the aggregate consideration paid by CenturyLink in the combination will be based on the fair value of such assets and liabilities as of the acquisition date with any excess aggregate consideration to be recorded as goodwill. The estimation of such fair values and the estimation of lives of depreciable tangible assets and amortizable intangible assets require significant judgment. CenturyLink is reviewing its valuation analysis and calculations of the estimates of the fair value of our assets acquired and liabilities assumed, along with the related allocation to goodwill. CenturyLink expects to complete the final fair value determinations prior to the anniversary date of the acquisition. CenturyLink’s final fair value determinations may be different than those reflected in our consolidated financial statements at June 30, 2018 . The recognition of assets and liabilities at fair value are reflected in our financial statements and result in a new basis of accounting for the “successor period” beginning on November 1, 2017. This new basis of accounting means that our financial statements for the successor periods will not be comparable to our previously reported financial statements, including the financial statements in this report. Based solely on CenturyLink’s preliminary estimates through June 30, 2018 , the aggregate consideration exceeds the aggregate estimated fair value of the acquired assets and assumed liabilities by $11.143 billion , which we have recognized as goodwill. The goodwill is attributable to strategic benefits, including enhanced financial and operational scale, market diversification and leveraged combined networks that CenturyLink expects to realize. None of the goodwill associated with this acquisition is deductible for income tax purposes. As of June 30, 2018 , the following is our updated assignment of the preliminary estimated aggregate consideration: Adjusted November 1, 2017 Balance as of December 31, 2017 Purchase Price Adjustments (3) Adjusted November 1, 2017 Balance as of June 30, 2018 (Dollars in millions) Cash, accounts receivable and other current assets (1) $ 3,317 (14 ) 3,303 Property, plant and equipment 9,311 113 9,424 Identifiable intangible assets (2) Customer relationships 8,964 (476 ) 8,488 Other 391 (13 ) 378 Other noncurrent assets 782 184 966 Current liabilities, excluding current maturities of long-term debt (1,461 ) (20 ) (1,481 ) Current maturities of long-term debt (7 ) — (7 ) Long-term debt (10,888 ) — (10,888 ) Deferred revenue and other liabilities (1,613 ) (85 ) (1,698 ) Goodwill 10,837 306 11,143 Total estimated aggregate consideration $ 19,633 (5 ) 19,628 (1) Includes a preliminary estimated fair value of $861 million for accounts receivable, which had a gross contractual value of $884 million on November 1, 2017. The $23 million difference between the gross contractual value and the preliminary estimated fair value assigned represents our best estimate as of November 1, 2017 of contractual cash flows that will not be collected. (2) The preliminary estimate of the weighted-average amortization period for the acquired intangible assets is approximately 12.0 years . (3) All purchase price adjustments occurred during the six months ended June 30, 2018 . Acquisition-Related Expenses We have incurred acquisition-related expenses related to our activities surrounding the CenturyLink Merger. The table below summarizes our acquisition-related expenses, which consist of integration-related expenses, including severance and retention compensation expenses, and transaction-related expenses: Successor Predecessor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in millions) Transaction-related expenses $ — — 2 5 Integration-related expenses 59 77 20 38 Total acquisition-related expenses $ 59 77 22 43

Goodwill, Customer Relationship

Goodwill, Customer Relationships and Other Intangible Assets	6 Months Ended
	Jun. 30, 2018
Acquired Intangible Assets Disclosure [Abstract]
Goodwill, Customer Relationships and Other Intangible Assets	(3) Goodwill, Customer Relationships and Other Intangible Assets Goodwill, customer relationships and other intangible assets consisted of the following: June 30, 2018 December 31, 2017 (Dollars in millions) Goodwill $ 11,078 10,837 Customer relationships, less accumulated amortization of $477 and $126 $ 7,990 8,845 Other intangible assets subject to amortization: Trade names, less accumulated amortization of $17 and $4 113 126 Developed technology, less accumulated amortization of $37 and $9 283 252 Total other intangible assets, net $ 396 378 Our goodwill balance at December 31, 2017 includes $16 million of goodwill that was allocated to us from CenturyLink associated with differences in the deferred state income taxes that CenturyLink expects to realize due to its consolidation of our results of operations into its state tax returns. Total amortization expense for intangible assets for the successor three and six months ended June 30, 2018 was $202 million and $396 million , respectively, and the predecessor three and six months ended June 30, 2017 was $52 million and $97 million , respectively. As of the successor date of June 30, 2018 , the gross carrying amount of goodwill, customer relationships, indefinite-life and other intangible assets was $20 billion . We estimate that total amortization expense for intangible assets for the successor years ending December 31, 2018 through 2022 will be as follows: (Dollars in millions) 2018 (remaining six months) $ 402 2019 805 2020 805 2021 805 2022 792 The following table shows the rollforward of goodwill from December 31, 2017 through June 30, 2018: (Dollars in millions) As of December 31, 2017 $ 10,837 Purchase accounting and other adjustments 306 Effect of foreign currency rate change (65 ) As of June 30, 2018 $ 11,078

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	(4) Revenue Recognition We earn most of our consolidated revenue from contracts with customers, primarily through the provision of telecommunications and other services. Revenue from contracts with customers is accounted for under Accounting Standards Codification ("ASC") 606, which we adopted on January 1, 2018 using the modified retrospective approach. We also earn revenues from leasing arrangements (primarily fiber capacity agreements) and governmental subsidy payments, neither of which are accounted for under ASC 606. Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Revenue is recognized based on the following five-step model: • Identification of the contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and, • Recognition of revenue when, or as, we satisfy a performance obligation. We provide an array of communications services, including local voice, broadband, private line (including special access), network access, Ethernet, information technology, video and other ancillary services. We provide these services to a wide range of businesses, including global/international, enterprise, wholesale, government, small and medium business customers. Certain contracts also include the sale of equipment, which is not significant to our business. For access services, we generally bill fixed monthly charges one month in advance to customers and recognize revenue as service is provided over the contract term in alignment with the customer's receipt of service. For usage, installation and other ancillary services, we generally bill in arrears and recognize revenue as usage or delivery occurs. In most cases, the amount invoiced for our service offerings constitutes the price that would be billed on a standalone basis. Under ASC 606, we recognize revenue for services when we provide the applicable service or when control is transferred. Recognition of certain payments received in advance of services being provided is deferred until the service is provided. These advance payments include certain activation and certain installation charges. If the activation and installation charges are separate performance obligations, we recognize them as revenue over the actual or expected contract term using historical experience, which ranges from one year to seven years depending on the service. Promotional or performance-based incentive payments are estimated at contract inception (and updated on a periodic basis as needed) and accounted for as variable consideration. In certain cases, customers may be permitted to modify their contracts without incurring a penalty. We evaluate the change in scope or price to identify whether the modification should be treated as a separate contract, whether the modification is a termination of the existing contract and creation of a new contract, or if it is a change to the existing contract. The impact of contract modifications is not significant to our results. Customer contracts are evaluated to determine whether the performance obligations are separable. If the performance obligations are deemed separable and separate earnings processes exist, the total transaction price that we expect to receive with the customer is allocated to each performance obligation based on its relative standalone selling price. The standalone selling price is the price we sell to similar customers. The revenue associated with each performance obligation is then recognized as earned. The portion of any advance payment allocated to the service based upon its relative selling price is recognized ratably over the contract term. We periodically sell optical capacity on our network. These transactions are structured as indefeasible rights of use, commonly referred to as IRUs, which are the exclusive right to use a specified amount of capacity or fiber for a specified term, typically 10 - 20 years. In most cases, we account for the cash consideration received on transfers of optical capacity and fiber assets and on all of the other elements deliverable under an IRU as non-ASC 606 lease revenue which we recognize ratably over the term of the agreement. We do not recognize revenue on any contemporaneous exchanges of our optical capacity assets for other optical capacity assets. In connection with offering products and services provided to the end user by third-party vendors, we review the relationship between us, the vendor and the end user to assess whether revenue should be reported on a gross or net basis. In assessing whether revenue should be reported on a gross or net basis, we consider whether we act as a principal in the transaction and control the goods and services used to fulfill the performance obligations associated with the transaction. We have service level commitments pursuant to contracts with certain of our customers. To the extent that such service levels are not achieved or are otherwise disputed due to performance or service issues or other service interruptions or conditions, we will estimate the amount of credits to be issued and record a reduction to revenues in the period that the service level commitment was not met. Customer payments are made based on billing schedules included in our customer contracts, which is typically on a monthly basis. For certain products or services and customer types, payment is required before products or services are provided. Comparative Results The following tables present our reported results under ASC 606 and a reconciliation to results using the historical accounting method: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Operating revenues $ 2,052 — 2,052 4,139 — 4,139 Cost of services and products (exclusive of depreciation and amortization) 980 — 980 1,978 — 1,978 Selling, general and administrative 388 7 395 732 20 752 Income tax expense 44 (2 ) 42 146 (5 ) 141 Net income 40 (5 ) 35 102 (15 ) 87 The following table presents a reconciliation of certain consolidated balance sheet captions under ASC 606 to the balance sheet results using the historical accounting method: June 30, 2018 (Dollars in millions) Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Other current assets $ 201 (16 ) 185 Deferred income tax assets, net 281 9 290 Other long-term assets, net 108 (18 ) 90 Member's equity 18,749 (25 ) 18,724 Disaggregated Revenue by Service Offering The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and six months ended June 30, 2018 , respectively. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards. Successor Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) (Dollars in millions) Total Revenues Adjustments (7) Total Revenue from Contracts with Customers Total Revenues Adjustments (7) Total Revenue from Contracts with Customers IP & Data Services (4) $ 987 — 987 1,990 — 1,990 Transport & Infrastructure (3) 673 (52 ) 621 1,348 (94 ) 1,254 Voice & Collaboration (1) 363 — 363 744 — 744 IT and Managed Services (2) 1 — 1 2 — 2 Other revenues (5) 1 (1 ) — 3 (3 ) — Affiliate revenues (6) 27 (27 ) — 52 (52 ) — Total revenues $ 2,052 (80 ) 1,972 4,139 (149 ) 3,990 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,972 3,990 Total revenue from contracts with customers $ 1,972 $ 3,990 (1) Includes local, long-distance and other ancillary revenues. (2) Includes IT services and managed services revenues. (3) Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenues. (4) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (5) Includes sublease rental income. (6) Includes telecommunications and data services we bill to our affiliates. (7) Includes sublease rental income and revenue from fiber capacity lease arrangements which are not within the scope of ASC 606. Customer Receivables and Contract Balances The following table provides balances of customer receivables and contract liabilities as of June 30, 2018 and January 1, 2018: Successor June 30, 2018 January 1, 2018 (Dollars in millions) Customer receivables (1) $ 744 748 Contract liabilities 392 353 (1) Gross customer receivables of $753 and $751 , net of allowance for doubtful accounts of $9 and $3 , at June 30, 2018 and January 1, 2018, respectively. Contract liabilities are consideration we have received from our customers in advance of providing the goods or services promised in the contract. We defer this consideration until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which ranges from one to seven years depending on the service. Contract liabilities are included within deferred revenue in our consolidated balance sheet. The following table provides information about revenues recognized for the three and six months ended June 30, 2018 : Successor Three Months Ended March 31, 2018 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period (January 1, 2018) $ 97 16 113 Performance obligations satisfied in previous periods — — — Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. We recognize revenue for services when we satisfy our performance obligation as services are provided. As of June 30, 2018 , our estimated revenue expected to be recognized in the future related to performance obligations associated with customer contracts (including affiliates) that are unsatisfied (or partially satisfied) is approximately $6.5 billion . We expect to recognize approximately 51% of this revenue through 2019, with the balance recognized thereafter. We do not disclose the amount of unsatisfied performance obligations for contracts under which we are contractually entitled to bill pre-determined amounts for future services (for example, uncommitted usage or non-recurring charges associated with professional or technical services to be completed), or contracts that are classified as leasing arrangements that are not subject to ASC 606. Contract Costs The following table provides changes in our contract acquisition costs and fulfillment costs for the three and six months ended June 30, 2018 : Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Acquisition Costs Fulfillment Costs Acquisition Costs Fulfillment Costs Beginning of period balance $ 26 35 13 14 Costs incurred 11 24 26 47 Amortization (3 ) (7 ) (5 ) (9 ) End of period balance $ 34 52 34 52 Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of telecommunications services to customers, including labor and materials consumed for these activities. Acquisition and fulfillment costs are amortized based on the transfer of services to which the assets relate which typically range from 12 months to 60 months and are included in cost of services and products and selling, general and administrative expenses in our consolidated statement of operations. A portion of these costs are amortized on a portfolio basis using an average expected contract term of 30 months. The amount of these capitalized costs that are anticipated to be amortized in the next twelve months are included in other current assets on our consolidated balance sheets. We recognize incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets is less than one year. Deferred acquisition and fulfillment costs are assessed for impairment on a quarterly basis. Products and Services Revenues We are an integrated communications company engaged primarily in providing an array of communications services, including local voice, broadband, private line (including business data services), Ethernet, network access, information technology and other ancillary services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services. We categorize our products, services and revenues among the following six categories: • IP and data services , which include primarily VPN data networks, Ethernet, IP and other ancillary services; • Transport and infrastructure , which include broadband, private line (including business data services) and other ancillary services; • Voice and collaboration , which includes primarily local voice, including wholesale voice, and other ancillary services; • IT and managed services, which include information technology services and managed services, which may be purchased in conjunction with our other network services; • Other, which includes sublease rental income; and • Affiliates services, we provide to our affiliates, telecommunication services that we also provide to external customers. In addition, we provide to our affiliates computer system development and support services, network support and technical services. From time to time, we may change the categorization of our products and services. Our operating revenues for our products and services consisted of the following categories: Successor Predecessor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in millions) IP and data services $ 987 1,990 986 1,958 Transport and infrastructure 673 1,348 688 1,366 Voice and collaboration 363 744 386 782 IT and managed services 1 2 — — Other 1 3 2 4 Affiliate 27 52 — — Total revenues $ 2,052 4,139 2,062 4,110

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Long-term Debt	(5) Long-Term Debt The following table summarizes our long-term debt: Interest Rates Maturities June 30, 2018 December 31, 2017 (Dollars in millions) Level 3 Parent, LLC Senior notes (1) 5.750% 2022 $ 600 600 Subsidiaries Level 3 Financing, Inc. Senior notes (2) 5.125% - 6.125% 2021 - 2026 5,315 5,315 Term loan (3) LIBOR + 2.25% 2024 4,611 4,611 Capital leases Various Various 174 179 Total long-term debt, excluding unamortized premiums 10,700 10,705 Unamortized premiums, net 170 185 Total long-term debt 10,870 10,890 Less current maturities (13 ) (8 ) Long-term debt, excluding current maturities $ 10,857 10,882 (1) The notes are not guaranteed by any of Level 3 Parent, LLC's subsidiaries. (2) The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by Level 3 Parent, LLC and Level 3 Communications, LLC. (3) The Tranche B 2024 Term Loan is a secured obligation and is guaranteed by Level 3 Parent, LLC and certain other subsidiaries. The Tranche B 2024 Term Loan had an interest rate of 4.334% as of June 30, 2018 and 3.557% as of December 31, 2017 . The interest rate on the Tranche B 2024 Term Loan is set with a minimum London Interbank Offered Rate ("LIBOR ") of zero percent. Long-Term Debt Maturities Set forth below is the aggregate principal amount of our long-term debt and capital leases (excluding unamortized premiums) maturing during the following years: (Dollars in millions) 2018 (remaining six months) $ 7 2019 8 2020 10 2021 651 2022 1,726 2023 and thereafter 8,298 Total long-term debt $ 10,700 Covenants The senior notes of Level 3 Parent, LLC and term loan and senior notes of Level 3 Financing, Inc. contain extensive affirmative and negative covenants. Such covenants include, among other things and subject to certain significant exceptions, restrictions on their ability to declare or pay dividends, repay certain other indebtedness, create liens, incur additional indebtedness, make investments, engage in transactions with their affiliates including CenturyLink and its other subsidiaries, dispose of assets and merge or consolidate with any other person. Also, Level 3 Parent, LLC, as well as Level 3 Financing, Inc., will be required to offer to purchase certain of its long-term debt securities under certain circumstances in connection with a "change of control" of Level 3 Parent, LLC. Certain of CenturyLink's and our debt instruments contain cross acceleration provisions. When present, these provisions could have a wider impact on liquidity than might otherwise arise from a default or acceleration of a single debt instrument. Compliance At June 30, 2018 , we believe we were in compliance with the provisions and financial covenants contained in our respective material debt agreements. For additional information on our long-term debt, see Note 4 — Long-Term Debt to our consolidated financial statements in Item 8 of Part II of our annual report on Form 10-K for the year ended December 31, 2017.

Severance and Restructuring Cos

Severance and Restructuring Costs	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Severance and Restructuring Costs	(6) Severance and Restructuring Costs Changes in our accrued liabilities for severance expenses and restructuring costs were as follows: Successor Severance Restructuring (Dollars in millions) Balance at January 1, 2018 $ 5 4 Accrued to expense 12 46 Payments, net (12 ) (1 ) Balance at June 30, 2018 $ 5 49

Products and Services Revenues

Products and Services Revenues	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Products and Services Revenues	(4) Revenue Recognition We earn most of our consolidated revenue from contracts with customers, primarily through the provision of telecommunications and other services. Revenue from contracts with customers is accounted for under Accounting Standards Codification ("ASC") 606, which we adopted on January 1, 2018 using the modified retrospective approach. We also earn revenues from leasing arrangements (primarily fiber capacity agreements) and governmental subsidy payments, neither of which are accounted for under ASC 606. Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Revenue is recognized based on the following five-step model: • Identification of the contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and, • Recognition of revenue when, or as, we satisfy a performance obligation. We provide an array of communications services, including local voice, broadband, private line (including special access), network access, Ethernet, information technology, video and other ancillary services. We provide these services to a wide range of businesses, including global/international, enterprise, wholesale, government, small and medium business customers. Certain contracts also include the sale of equipment, which is not significant to our business. For access services, we generally bill fixed monthly charges one month in advance to customers and recognize revenue as service is provided over the contract term in alignment with the customer's receipt of service. For usage, installation and other ancillary services, we generally bill in arrears and recognize revenue as usage or delivery occurs. In most cases, the amount invoiced for our service offerings constitutes the price that would be billed on a standalone basis. Under ASC 606, we recognize revenue for services when we provide the applicable service or when control is transferred. Recognition of certain payments received in advance of services being provided is deferred until the service is provided. These advance payments include certain activation and certain installation charges. If the activation and installation charges are separate performance obligations, we recognize them as revenue over the actual or expected contract term using historical experience, which ranges from one year to seven years depending on the service. Promotional or performance-based incentive payments are estimated at contract inception (and updated on a periodic basis as needed) and accounted for as variable consideration. In certain cases, customers may be permitted to modify their contracts without incurring a penalty. We evaluate the change in scope or price to identify whether the modification should be treated as a separate contract, whether the modification is a termination of the existing contract and creation of a new contract, or if it is a change to the existing contract. The impact of contract modifications is not significant to our results. Customer contracts are evaluated to determine whether the performance obligations are separable. If the performance obligations are deemed separable and separate earnings processes exist, the total transaction price that we expect to receive with the customer is allocated to each performance obligation based on its relative standalone selling price. The standalone selling price is the price we sell to similar customers. The revenue associated with each performance obligation is then recognized as earned. The portion of any advance payment allocated to the service based upon its relative selling price is recognized ratably over the contract term. We periodically sell optical capacity on our network. These transactions are structured as indefeasible rights of use, commonly referred to as IRUs, which are the exclusive right to use a specified amount of capacity or fiber for a specified term, typically 10 - 20 years. In most cases, we account for the cash consideration received on transfers of optical capacity and fiber assets and on all of the other elements deliverable under an IRU as non-ASC 606 lease revenue which we recognize ratably over the term of the agreement. We do not recognize revenue on any contemporaneous exchanges of our optical capacity assets for other optical capacity assets. In connection with offering products and services provided to the end user by third-party vendors, we review the relationship between us, the vendor and the end user to assess whether revenue should be reported on a gross or net basis. In assessing whether revenue should be reported on a gross or net basis, we consider whether we act as a principal in the transaction and control the goods and services used to fulfill the performance obligations associated with the transaction. We have service level commitments pursuant to contracts with certain of our customers. To the extent that such service levels are not achieved or are otherwise disputed due to performance or service issues or other service interruptions or conditions, we will estimate the amount of credits to be issued and record a reduction to revenues in the period that the service level commitment was not met. Customer payments are made based on billing schedules included in our customer contracts, which is typically on a monthly basis. For certain products or services and customer types, payment is required before products or services are provided. Comparative Results The following tables present our reported results under ASC 606 and a reconciliation to results using the historical accounting method: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Operating revenues $ 2,052 — 2,052 4,139 — 4,139 Cost of services and products (exclusive of depreciation and amortization) 980 — 980 1,978 — 1,978 Selling, general and administrative 388 7 395 732 20 752 Income tax expense 44 (2 ) 42 146 (5 ) 141 Net income 40 (5 ) 35 102 (15 ) 87 The following table presents a reconciliation of certain consolidated balance sheet captions under ASC 606 to the balance sheet results using the historical accounting method: June 30, 2018 (Dollars in millions) Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Other current assets $ 201 (16 ) 185 Deferred income tax assets, net 281 9 290 Other long-term assets, net 108 (18 ) 90 Member's equity 18,749 (25 ) 18,724 Disaggregated Revenue by Service Offering The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and six months ended June 30, 2018 , respectively. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards. Successor Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) (Dollars in millions) Total Revenues Adjustments (7) Total Revenue from Contracts with Customers Total Revenues Adjustments (7) Total Revenue from Contracts with Customers IP & Data Services (4) $ 987 — 987 1,990 — 1,990 Transport & Infrastructure (3) 673 (52 ) 621 1,348 (94 ) 1,254 Voice & Collaboration (1) 363 — 363 744 — 744 IT and Managed Services (2) 1 — 1 2 — 2 Other revenues (5) 1 (1 ) — 3 (3 ) — Affiliate revenues (6) 27 (27 ) — 52 (52 ) — Total revenues $ 2,052 (80 ) 1,972 4,139 (149 ) 3,990 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,972 3,990 Total revenue from contracts with customers $ 1,972 $ 3,990 (1) Includes local, long-distance and other ancillary revenues. (2) Includes IT services and managed services revenues. (3) Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenues. (4) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (5) Includes sublease rental income. (6) Includes telecommunications and data services we bill to our affiliates. (7) Includes sublease rental income and revenue from fiber capacity lease arrangements which are not within the scope of ASC 606. Customer Receivables and Contract Balances The following table provides balances of customer receivables and contract liabilities as of June 30, 2018 and January 1, 2018: Successor June 30, 2018 January 1, 2018 (Dollars in millions) Customer receivables (1) $ 744 748 Contract liabilities 392 353 (1) Gross customer receivables of $753 and $751 , net of allowance for doubtful accounts of $9 and $3 , at June 30, 2018 and January 1, 2018, respectively. Contract liabilities are consideration we have received from our customers in advance of providing the goods or services promised in the contract. We defer this consideration until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which ranges from one to seven years depending on the service. Contract liabilities are included within deferred revenue in our consolidated balance sheet. The following table provides information about revenues recognized for the three and six months ended June 30, 2018 : Successor Three Months Ended March 31, 2018 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period (January 1, 2018) $ 97 16 113 Performance obligations satisfied in previous periods — — — Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. We recognize revenue for services when we satisfy our performance obligation as services are provided. As of June 30, 2018 , our estimated revenue expected to be recognized in the future related to performance obligations associated with customer contracts (including affiliates) that are unsatisfied (or partially satisfied) is approximately $6.5 billion . We expect to recognize approximately 51% of this revenue through 2019, with the balance recognized thereafter. We do not disclose the amount of unsatisfied performance obligations for contracts under which we are contractually entitled to bill pre-determined amounts for future services (for example, uncommitted usage or non-recurring charges associated with professional or technical services to be completed), or contracts that are classified as leasing arrangements that are not subject to ASC 606. Contract Costs The following table provides changes in our contract acquisition costs and fulfillment costs for the three and six months ended June 30, 2018 : Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Acquisition Costs Fulfillment Costs Acquisition Costs Fulfillment Costs Beginning of period balance $ 26 35 13 14 Costs incurred 11 24 26 47 Amortization (3 ) (7 ) (5 ) (9 ) End of period balance $ 34 52 34 52 Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of telecommunications services to customers, including labor and materials consumed for these activities. Acquisition and fulfillment costs are amortized based on the transfer of services to which the assets relate which typically range from 12 months to 60 months and are included in cost of services and products and selling, general and administrative expenses in our consolidated statement of operations. A portion of these costs are amortized on a portfolio basis using an average expected contract term of 30 months. The amount of these capitalized costs that are anticipated to be amortized in the next twelve months are included in other current assets on our consolidated balance sheets. We recognize incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets is less than one year. Deferred acquisition and fulfillment costs are assessed for impairment on a quarterly basis. Products and Services Revenues We are an integrated communications company engaged primarily in providing an array of communications services, including local voice, broadband, private line (including business data services), Ethernet, network access, information technology and other ancillary services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services. We categorize our products, services and revenues among the following six categories: • IP and data services , which include primarily VPN data networks, Ethernet, IP and other ancillary services; • Transport and infrastructure , which include broadband, private line (including business data services) and other ancillary services; • Voice and collaboration , which includes primarily local voice, including wholesale voice, and other ancillary services; • IT and managed services, which include information technology services and managed services, which may be purchased in conjunction with our other network services; • Other, which includes sublease rental income; and • Affiliates services, we provide to our affiliates, telecommunication services that we also provide to external customers. In addition, we provide to our affiliates computer system development and support services, network support and technical services. From time to time, we may change the categorization of our products and services. Our operating revenues for our products and services consisted of the following categories: Successor Predecessor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in millions) IP and data services $ 987 1,990 986 1,958 Transport and infrastructure 673 1,348 688 1,366 Voice and collaboration 363 744 386 782 IT and managed services 1 2 — — Other 1 3 2 4 Affiliate 27 52 — — Total revenues $ 2,052 4,139 2,062 4,110

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	(8) Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of our long-term debt, excluding capital lease and other obligations, as well as the input level used to determine the fair values indicated below: June 30, 2018 December 31, 2017 Input Level Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in millions) Liabilities-Long-term debt, excluding capital lease and other obligations 2 $ 10,696 10,413 10,711 10,528

Commitments, Contingencies and

Commitments, Contingencies and Other Items	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments, Contingencies and Other Items	(9) Commitments, Contingencies and Other Items We are subject to various claims, legal proceedings and other contingent liabilities, including the matters described below, that individually or in the aggregate could materially affect our financial condition, future results of operations or cash flows. As a matter of course, we are prepared to both litigate these matters to judgment as needed, as well as to evaluate and consider reasonable settlement opportunities. Irrespective of its merits, litigation may be both lengthy and disruptive to our operations and could cause significant expenditure and diversion of management attention. We review our litigation accrual liabilities on a quarterly basis, but in accordance with applicable accounting guidelines only establish accrual liabilities when losses are deemed probable and reasonably estimable and only revise previously-established accrual liabilities when warranted by changes in circumstances, in each case based on then-available information. As such, as of any given date we could have exposure to losses under proceedings as to which no liability has been accrued or as to which the accrued liability is inadequate. Amounts accrued for such contingencies at June 30, 2018 aggregate to approximately $76 million and are included in “Other” current liabilities and “Other Liabilities” in our consolidated balance sheet as of such date. 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 could have no effect on our results of operations but nonetheless could have an adverse effect on our cash flows. In this Note, when we refer to a class action as "putative" it is because a class has been alleged, but not certified in that matter. Peruvian Tax Litigation In 2005, the Peruvian tax authorities ("SUNAT") issued tax assessments against one of our Peruvian subsidiaries asserting $26 million of additional income tax withholding and value-added taxes ("VAT"), penalties and interest for calendar years 2001 and 2002 on the basis that the Peruvian subsidiary incorrectly documented its importations. After taking into account the developments described below, as well as the accrued interest and foreign exchange effects, the total amount of exposure is $13 million at June 30, 2018 . We challenged the assessments via administrative and then judicial review processes. In October 2011, the highest administrative review tribunal (the "Tribunal") decided the central issue underlying the 2002 assessments in SUNAT's favor. We appealed the Tribunal's decision to the first judicial level, which decided the central issue in favor of Level 3. SUNAT and we filed cross-appeals with the court of appeal. In May 2017, the court of appeal issued a decision reversing the first judicial level. In June 2017, we filed an appeal of the decision to the Supreme Court of Justice, the final judicial level. That appeal is pending. In October 2013, the Tribunal decided the central issue underlying the 2001 assessments in SUNAT’s favor. We appealed that decision to the first judicial level in Peru, which decided the central issue in favor of SUNAT. In June 2017, we filed an appeal with the court of appeal. In November 2017, the court of appeals issued a decision affirming the first judicial level and we filed an appeal of the decision to the Supreme Court of Justice. That appeal is pending. 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 of our Latin American subsidiaries 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 us or termination of service relationships. We are vigorously defending ourselves against the asserted claims, which aggregate to approximately $30 million at June 30, 2018 . 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 our Brazilian subsidiaries for the Tax on Distribution of Goods and Services (“ICMS”) with respect to revenue from leasing certain assets (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. 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. We have 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 we have appealed those decisions to the judicial courts. In October 2012 and June 2014, we 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 we appealed this decision to the second administrative level. We are vigorously contesting all such assessments in both states and, in particular, view the assessment of ICMS on revenue from equipment leasing to be without merit. These assessments, if upheld, could result in a loss of up to $35 million at June 30, 2018 in excess of the accruals established for these matters. Other Matters We were notified in late 2017 of a qui tam action pending against Level 3 Communications, Inc., certain former employees and others in the United States District Court for the Eastern District of Virginia, captioned United States of America ex rel., Stephen Bishop v. Level 3 Communications, Inc. et al. The original qui tam complaint was filed under seal on November 26, 2013, and an amended complaint was filed under seal on June 16, 2014. The court unsealed the complaints on October 26, 2017. The amended complaint alleges that we, principally through two former employees, submitted false claims and made false statements to the government in connection with two government contracts. The relator seeks damages in this lawsuit of approximately $50 million , subject to trebling, plus statutory penalties, pre-and-post judgment interest, and attorney’s fees. The case is currently stayed. We are evaluating our defenses to the claims. At this time, we do not believe it is probable we will incur a material loss. If, contrary to our expectations, the plaintiff prevails in this matter and proves damages at or near $50 million , and is successful in having those damages trebled, the outcome could have a material adverse effect on our results of operations in the period in which a liability is recognized and on our cash flows for the period in which any damages are paid. The two former Level 3 employees named in the qui tam amended complaint and others were also indicted in the United States District Court for the Eastern District of Virginia on October 3, 2017, and charged with, among other things, accepting kickbacks from a subcontractor, who was also indicted, for work to be performed under a prime government contract. We are fully cooperating in the government’s investigations in this matter. Letters of Credit It is customary for us to use various financial instruments in the normal course of business. These instruments include letters of credit which are conditional commitments issued on our behalf in accordance with specified terms and conditions. As of both June 30, 2018 , we had outstanding letters of credit or other similar obligations of approximately $32 million , of which $26 million are collateralized by cash that is reflected on the consolidated balance sheets as restricted cash and securities. Other Proceedings, Disputes and Contingencies From time to time, we are involved in other proceedings incidental to our business, including patent infringement allegations, administrative hearings or proceedings of state public utility commissions relating primarily to our rates or services, actions relating to employee claims, various tax issues, environmental law issues, grievance hearings before labor regulatory agencies and miscellaneous third-party tort actions. We are currently defending several patent infringement lawsuits asserted against us by non-practicing entities, many of which are seeking substantial recoveries. These cases have progressed to various stages and one or more may go to trial in the coming 24 months if they are not otherwise resolved. Where applicable, we are seeking full or partial indemnification from our vendors and suppliers. As with all litigation, we are vigorously defending these actions and, as a matter of course, are prepared to litigate these matters to judgment, as well as to evaluate and consider all reasonable settlement opportunities. We are subject to various foreign, federal, state and local environmental protection and health and safety laws. From time to time, we are subject to judicial and administrative proceedings brought by various governmental authorities under these laws. Several such proceedings are currently pending, but none is reasonably expected to exceed $100,000 in fines and penalties. The outcome of these other proceedings is not predictable. However, based on current circumstances, we do not believe that the ultimate resolution of these other proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows. The matters listed above in this Note do not reflect all of our contingencies. For additional information on our contingencies, See Note 14 to the financial statements included in Item 8 of Part II of our annual report on Form 10-K for the year ended December 31, 2017.

Other Financial Information

Other Financial Information	6 Months Ended
	Jun. 30, 2018
Statement of Financial Position [Abstract]
Other Financial Information	(10) Other Financial Information Other Current Assets The following table presents details of other current assets in our consolidated balance sheets: Successor June 30, 2018 December 31, 2017 (Dollars in millions) Prepaid expenses $ 90 68 Material, supplies and inventory 4 3 Deferred activation and installation charges 19 17 Deferred commissions 16 — Other 72 29 Total other current assets $ 201 117 Other Current Liabilities The following table presents details of other current liabilities in our consolidated balance sheets: Successor June 30, 2018 December 31, 2017 (Dollars in millions) Self-insurance $ 12 11 Legal and tax reserves 13 31 Other 20 15 Total other current liabilities $ 45 57

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income Loss	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income Loss	(11) Accumulated Other Comprehensive Loss The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the successor six months ended June 30, 2018 : Foreign Currency Translation Adjustment and Other Total (Dollars in millions) Balance at December 31, 2017 $ 18 18 Other comprehensive loss before reclassifications, net of tax (163 ) (163 ) Cumulative effect of adoption of ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 6 6 Net other comprehensive loss (157 ) (157 ) Balance at June 30, 2018 $ (139 ) (139 ) The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the predecessor six months ended June 30, 2017 : Pension Plans Foreign Currency Translation Adjustment and Other Total (Dollars in millions) Balance at December 31, 2016 $ (34 ) (353 ) (387 ) Other comprehensive income before reclassifications, net of tax 1 62 63 Amounts reclassified from accumulated other comprehensive loss (1 ) — (1 ) Net other comprehensive income — 62 62 Balance at June 30, 2017 $ (34 ) (291 ) (325 )

Condensed Consolidating Financi

Condensed Consolidating Financial Information	6 Months Ended
	Jun. 30, 2018
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Financial Information	(12) Condensed Consolidating Financial Information Level 3 Financing, Inc., a wholly owned subsidiary, 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 Parent, LLC 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 our consolidated financial statements are interdependent. The accompanying condensed consolidating financial information presents the statements of comprehensive income (loss), 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 Parent, LLC. These transactions are eliminated in our consolidated results. Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2018 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING REVENUES Operating revenues $ — — 977 1,091 (43 ) 2,025 Operating revenues - affiliate — — 6 21 — 27 Total operating revenues — — 983 1,112 (43 ) 2,052 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 600 423 (43 ) 980 Selling, general and administrative — 2 286 100 — 388 Operating expenses - affiliates — — 37 18 — 55 Depreciation and amortization — — 174 259 — 433 Total operating expenses — 2 1,097 800 (43 ) 1,856 OPERATING INCOME (LOSS) — (2 ) (114 ) 312 — 196 OTHER INCOME (EXPENSE) Interest income — — 1 — (1 ) — Interest income - affiliate 16 — — — — 16 Interest expense (8 ) (113 ) — (4 ) 1 (124 ) Interest income (expense) - intercompany, net 348 604 (878 ) (74 ) — — Equity in net earnings (losses) of subsidiaries (316 ) (832 ) — — 1,148 — Other income, net — — 2 (6 ) — (4 ) Total other income (expense) 40 (341 ) (875 ) (84 ) 1,148 (112 ) INCOME (LOSS) BEFORE INCOME TAXES 40 (343 ) (989 ) 228 1,148 84 Income tax benefit (expense) — 27 13 (84 ) — (44 ) NET INCOME (LOSS) 40 (316 ) (976 ) 144 1,148 40 Other comprehensive income (loss), net of income taxes (235 ) — — (235 ) 235 (235 ) COMPREHENSIVE INCOME (LOSS) $ (195 ) $ (316 ) $ (976 ) $ (91 ) $ 1,383 $ (195 ) Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2017 (Predecessor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING REVENUES Operating revenues $ — — 934 1,174 (46 ) 2,062 Operating revenues - affiliate — — — — — — Total operating revenues — — 934 1,174 (46 ) 2,062 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 602 479 (46 ) 1,035 Selling, general and administrative expenses 1 1 294 71 — 367 Operating expenses - affiliate — — — — — — Depreciation and amortization — — 92 215 — 307 Total operating expenses 1 1 988 765 (46 ) 1,709 OPERATING INCOME (LOSS) (1 ) (1 ) (54 ) 409 — 353 OTHER INCOME (EXPENSE) Interest income — — 3 — — 3 Interest income - affiliate — — — — — — Interest expense (9 ) (117 ) (1 ) (4 ) — (131 ) Interest income (expense) - intercompany, net 378 567 (868 ) (77 ) — — Equity in net earnings (losses) of subsidiaries (216 ) (632 ) 200 — 648 — Other income, net — — (2 ) — — (2 ) Total other income (expense) 153 (182 ) (668 ) (81 ) 648 (130 ) INCOME (LOSS) BEFORE INCOME TAXES 152 (183 ) (722 ) 328 648 223 Income tax benefit (expense) 2 (33 ) (1 ) (37 ) — (69 ) NET INCOME (LOSS) 154 (216 ) (723 ) 291 648 154 Other comprehensive income (loss), net of income taxes 41 — — 41 (41 ) 41 COMPREHENSIVE INCOME (LOSS) $ 195 (216 ) (723 ) 332 607 195 Condensed Consolidating Balance Sheets June 30, 2018 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 21 — 180 81 — 282 Restricted cash and securities — — 2 3 — 5 Assets held for sale — — 1 14 — 15 Accounts receivable — — 65 679 — 744 Accounts receivable - affiliate — — 4 31 (31 ) 4 Intercompany advances 16,727 23,346 — 4,303 (44,376 ) — Note receivable - affiliate 1,825 — — — — 1,825 Other — 3 101 97 — 201 Total current assets 18,573 23,349 353 5,208 (44,407 ) 3,076 Property, plant, and equipment, net — — 3,147 6,249 — 9,396 Restricted cash and securities 15 — 10 — — 25 GOODWILL AND OTHER ASSETS Goodwill — — 9,423 1,655 — 11,078 Customer relationships, net — — 3,897 4,093 — 7,990 Other intangible assets, net — — 396 — — 396 Investment in subsidiaries 16,955 19,501 3,605 — (40,061 ) — Deferred tax assets 281 1,868 167 — (1,833 ) 483 Other, net — 3 62 43 — 108 Total goodwill and other assets 17,236 21,372 17,550 5,791 (41,894 ) 20,055 TOTAL ASSETS $ 35,824 44,721 21,060 17,248 (86,301 ) 32,552 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ — — 2 11 — 13 Accounts payable — 1 285 295 — 581 Accounts payable - affiliate 48 — 89 — (31 ) 106 Income and other taxes — — 43 38 — 81 Salaries and benefits — — 162 37 — 199 Interest 11 77 — 6 — 94 Current portion of deferred revenue — — 153 132 — 285 Intercompany payables — — 44,376 — (44,376 ) — Other — — 26 19 — 45 Total current liabilities 59 78 45,136 538 (44,407 ) 1,404 LONG-TERM DEBT 615 10,082 13 147 — 10,857 DEFERRED REVENUE AND OTHER LIABILITIES Deferred revenues — — 931 207 — 1,138 Deferred income taxes 651 14 839 531 (1,833 ) 202 Other — — 163 178 — 341 Total deferred revenue and other liabilities 651 14 1,933 916 (1,833 ) 1,681 COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY (DEFICIT) 34,499 34,547 (26,022 ) 15,647 (40,061 ) 18,610 TOTAL LIABILITIES AND MEMBER'S EQUITY $ 35,824 44,721 21,060 17,248 (86,301 ) 32,552 Condensed Consolidating Balance Sheets December 31, 2017 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 13 — 175 109 — 297 Restricted cash and securities — — 1 4 — 5 Assets held for sale 68 — 5 67 — 140 Accounts receivable — — 26 722 — 748 Accounts receivable - affiliate — — 60 4 (51 ) 13 Intercompany advances 16,251 21,032 — 5,200 (42,483 ) — Note receivable - affiliate 1,825 — — — — 1,825 Other — — 54 63 — 117 Total current assets 18,157 21,032 321 6,169 (42,534 ) 3,145 Property, plant, and equipment, net — — 3,237 6,175 — 9,412 Restricted cash and securities 19 — 10 — — 29 GOODWILL AND OTHER ASSETS Goodwill — — 1,200 9,637 — 10,837 Customer relationships, net — — 4,324 4,521 — 8,845 Other intangible assets, net — — 378 — — 378 Investment in subsidiaries 16,954 18,403 3,616 — (38,973 ) — Deferred tax assets 280 1,795 — 122 (1,771 ) 426 Other, net — — 32 31 — 63 Total goodwill and other assets 17,234 20,198 9,550 14,311 (40,744 ) 20,549 TOTAL ASSETS $ 35,410 41,230 13,118 26,655 (83,278 ) 33,135 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ — — 2 6 — 8 Accounts payable — 1 323 371 — 695 Accounts payable - affiliate 11 — — 81 (51 ) 41 Accrued expenses and other liabilities Income and other taxes — — 55 45 — 100 Salaries and benefits — — 109 27 — 136 Interest 11 91 — 7 — 109 Current portion of deferred revenue — — 129 131 — 260 Intercompany payables — — 42,483 — (42,483 ) — Other 16 — 23 18 — 57 Total current liabilities 38 92 43,124 686 (42,534 ) 1,406 LONG-TERM DEBT 616 10,096 13 157 — 10,882 DEFERRED REVENUE AND OTHER LIABILITIES Deferred revenues — — 846 253 — 1,099 Deferred income taxes 648 — 870 465 (1,771 ) 212 Other 1 1 98 164 — 264 Total deferred revenue and other liabilities 649 1 1,814 882 (1,771 ) 1,575 COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY (DEFICIT) 34,107 31,041 (31,833 ) 24,930 (38,973 ) 19,272 TOTAL LIABILITIES AND MEMBER'S EQUITY $ 35,410 41,230 13,118 26,655 (83,278 ) 33,135 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ (85 ) — 899 204 — 1,018 INVESTING ACTIVITIES Capital expenditures — — (289 ) (257 ) — (546 ) Proceeds from the sale of property, plant and equipment and other assets 68 — — 51 — 119 Net cash provided by (used in) investing activities 68 — (289 ) (206 ) — (427 ) FINANCING ACTIVITIES Payments of long-term debt — — — (3 ) — (3 ) Distributions (605 ) — — — — (605 ) Increase (decrease) due from/to affiliates, net 605 — (605 ) — — — Net cash provided by (used in) financing activities — — (605 ) (3 ) — (608 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — (2 ) — (2 ) Net increase (decrease) in cash, cash equivalents and restricted cash and securities (17 ) — 5 (7 ) — (19 ) Cash, cash equivalents and restricted cash and securities and beginning of period 32 — 186 113 — 331 Cash, cash equivalents and restricted cash and securities and end of period $ 15 — 191 106 — 312 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 (Predecessor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING ACTIVITIES Net Cash Provided by (Used in) Operating Activities $ (14 ) (267 ) 352 1,029 — 1,100 INVESTING ACTIVITIES Capital expenditures — — (427 ) (269 ) — (696 ) Purchase of marketable securities — — (1,127 ) — — (1,127 ) Net cash provided by (used in) investing activities — — (1,554 ) (269 ) — (1,823 ) FINANCING ACTIVITIES Net proceeds from issuance of long-term debt — 4,569 — — — 4,569 Payments of long-term debt — (4,611 ) (1 ) (3 ) — (4,615 ) Increase (decrease) due from/to affiliates, net 10 309 442 (761 ) — — Net cash provided by (used in) financing activities 10 267 441 (764 ) — (46 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — 2 — 2 Net increase (decrease) in cash, cash equivalents and restricted cash and securities (4 ) — (761 ) (2 ) — (767 ) Cash, cash equivalents and restricted cash and securities and beginning of period 37 — 1,710 110 — 1,857 Cash, cash equivalents and restricted cash and securities and end of period $ 33 — 949 108 — 1,090

Background (Policies)

Background (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation On November 1, 2017, we became a wholly owned subsidiary of CenturyLink. On the date of the acquisition, our assets and liabilities were recognized at CenturyLink's preliminary estimates of fair value. This revaluation has been reflected in our financial statements and, therefore, has resulted in a new basis of accounting for the successor period beginning on November 1, 2017. This new basis of accounting means that our financial statements for the successor periods are not comparable to our previously reported financial statements, including the predecessor period financial statements in this report. The consolidated financial statements include our accounts and the accounts of our subsidiaries in which we have a controlling interest. All significant intercompany accounts and transactions have been eliminated. Transactions with our non-consolidated affiliates (CenturyLink and its other subsidiaries, referred to herein as affiliates) have not been eliminated. As part of our consolidation policy, we consider our controlled subsidiaries, investments in businesses in which we are not the primary beneficiary or do not have effective control but have the ability to significantly influence operating and financial policies, and variable interests resulting from economic arrangements that give us rights to economic risks or rewards of a legal entity. We do not have variable interests in a variable interest entity where we are required to consolidate the entity as the primary beneficiary. Due to exchange restrictions and other conditions, effective at the end of the third quarter of 2015, we deconsolidated our Venezuelan subsidiary and began accounting for our investment in our Venezuelan subsidiary using the cost method of accounting. The factors that led to our conclusions at the end of the third quarter of 2015 continued to exist through the second quarter of 2018. In conjunction with our acquisition on November 1, 2017, we changed the definitions we use to classify expenses as cost of services and products and selling, general and administrative, and as a result, we reclassified previously reported amounts to conform to the current period presentation. We revised our definitions so that our expense classifications are more consistent with the expense classifications used by our new ultimate parent company, CenturyLink. These revisions resulted in the reclassification of $47 million from depreciation and amortization to cost of services and products for the predecessor six months ended June 30, 2017 . Although we continued as a surviving corporation and legal entity after the acquisition, the accompanying consolidated statements of operations, comprehensive income, member's/stockholders' equity and cash flows are presented for two periods: predecessor and successor, which relates to the period preceding the acquisition and the period succeeding the acquisition. Our current definitions are as follows: • Cost of services and products (exclusive of depreciation and amortization) are expenses incurred in providing products and services to our customers. These expenses include: employee-related expenses directly attributable to operating and maintaining our network (such as salaries, wages, benefits and professional fees); facilities expenses (which are third-party telecommunications expenses we incur for using other carriers' networks to provide services to our customers); rents and utilities expenses; costs for universal service funds ("USF") (which are federal and state funds that are established to promote the availability of telecommunications services to all consumers at reasonable and affordable rates, among other things, and to which we are often required to contribute); taxes (such as property and other taxes); and other expenses directly related to our network. • Selling, general and administrative expenses are expenses incurred in selling products and services to our customers, corporate overhead and other operating expenses. These expenses include: employee-related expenses (such as salaries, wages, internal commissions, benefits and professional fees) directly attributable to selling products or services and employee-related expenses for administrative functions; marketing and advertising; taxes (such as state and local franchise taxes and sales and use taxes) and fees; external commissions; bad debt expense; and other selling, general and administrative expenses.
New Accounting Pronouncements	Recently Adopted Accounting Pronouncements In the first quarter or 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers ”, ASU 2016-16, “ Intra-Entity Transfers of Assets Other Than Inventory ” and ASU 2018-02, “ Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ”. Each of these is described further below. Revenue Recognition On May 28, 2014, the FASB issued ASU 2014-09 which replaces virtually all existing generally accepted accounting principles on revenue recognition and replaces them with a principles-based approach for determining revenue recognition using a new five step model. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. We adopted the new revenue recognition standard under the modified retrospective transition method. On January 1, 2018, we recorded a cumulative catch-up adjustment that increased our retained earnings by $9 million , net of $3 million of income taxes. Under ASU 2014-09, we are now deferring (i.e. capitalizing) incremental contract acquisition and fulfillment costs and are recognizing (i.e. amortizing) such costs over either the initial contract (plus and anticipated renewal contracts to which the costs relate) or the average customer life. Our deferred contract acquisition and fulfillment costs for our customers have average amortization periods of approximately 12 months to 60 months and are monitored every period to reflect any significant change in assumptions. We have material obligations to our customers in our indefeasible right of use arrangements, including certain long-term prepaid customer capacity arrangements. The majority of our indefeasible right of use arrangements are accounted for as operating leases. See Note 4 - Revenue Recognition for additional information. Comprehensive Income ASU 2018-02 provides an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. If an entity elects to reclassify the income tax effects of the Tax Cuts and Jobs Act, the amount of that reclassification shall include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income. The effect of the change in the U.S. federal corporate income tax rate on gross valuation allowances that were originally charged to income from continuing operations shall not be included. ASU 2018-02 is effective January 1, 2019, but early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We early adopted ASU 2018-02 in the first quarter of 2018 and applied it in the period of adoption. The adoption of ASU 2018-02 resulted in a $6 million decrease to member's equity and increase to accumulated other comprehensive income. See Note 11 - Accumulated Other Comprehensive Loss for additional information. Income Taxes On October 24, 2016, FASB issued ASU 2016-16, “ Intra-Entity Transfers of Assets Other Than Inventory” ("ASU 2016-16") . ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among our subsidiaries. After adoption of this ASU, the income tax effects associated with these asset transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or over the remaining useful life of the asset. We adopted ASU 2016-16 on January 1, 2018. The adoption of ASU 2016-16 did not have a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements Goodwill Impairment On January 26, 2017, the FASB issued ASU 2017-04, “ Simplifying the Test for Goodwill Impairment ” (“ASU 2017-04”). ASU 2017-04 simplifies the impairment testing for goodwill by changing the measurement for goodwill impairment. Under current rules, we are required to compute the implied fair value of goodwill to measure the impairment amount if the carrying value of a reporting unit exceeds its fair value. Under ASU 2017-04, the goodwill impairment charge will equal the excess of the reporting unit carrying value above its fair value, limited to the amount of goodwill assigned to the reporting unit. We are required to adopt the provisions of ASU 2017-04 for any goodwill impairment tests, including our required annual test, occurring after January 1, 2020, but have the option to early adopt for any impairment test that we are required to perform. We have not determined if we will elect to early adopt the provisions of ASU 2017-04. The provisions of ASU 2017-04 would not have affected our last goodwill impairment assessment, but no assurance can be provided that the simplified testing methodology will not affect our goodwill impairment assessment in the future. Financial Instruments On June 16, 2016, the FASB issued ASU 2016-13, " Measurement of Credit Losses on Financial Instruments " ("ASU 2016-13"). The primary impact of ASU 2016-13 for us is a change in the model for the recognition of credit losses related to our financial instruments from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires our management team to estimate the total credit losses expected on the portfolio of financial instruments. We are currently reviewing the requirements of the standard and evaluating the impact on our consolidated financial statements. We are required to adopt the provisions of ASU 2016-13 effective January 1, 2020 but could elect to early adopt the provisions as of January 1, 2019. We expect to recognize the impacts of adopting ASU 2016-13 through a cumulative adjustment to retained earnings as of the date of adoption. As of the date of this report, we have not yet determined the date we will adopt ASU 2016-13. Leases On February 25, 2016, the FASB issued ASU 2016-02, “ Leases ” (“ASU 2016-02”). The core principle of ASU 2016-02 will require lessees to present right-of-use assets and lease liabilities on their balance sheets for operating leases, which are currently not reflected on their balance sheets. ASU 2016-02 is effective for annual and interim periods beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. Upon adoption of ASU 2016-02, we are required to recognize and measure leases at the beginning of the earliest period presented in our consolidated financial statements using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. On January 25, 2018, the FASB issued ASU 2018-01, “ Leases: Land Easement Practical Expedient for Transition to ASU 2016-02" . ASU 2018-01permits the election of an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASC 2016-02 and that were not previously accounted for as leases. We plan to adopt ASU 2018-01 at the same time we adopt ASU 2016-02. On July 30, 2018, the FASB issued ASU 2018-11, " Leases: Targeted Improvements ". ("ASU 2018-11") provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We have not yet determined whether we will use the newly permitted adoption method. We are in the process of implementing a new lease administrative and accounting system. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019 and the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded. Although we believe it is premature as of the date of this report to provide any estimate of the impact of adopting ASU 2016-02, we do expect that it will have a material impact on our consolidated financial statements.

CenturyLink Merger (Tables)

CenturyLink Merger (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	As of June 30, 2018 , the following is our updated assignment of the preliminary estimated aggregate consideration: Adjusted November 1, 2017 Balance as of December 31, 2017 Purchase Price Adjustments (3) Adjusted November 1, 2017 Balance as of June 30, 2018 (Dollars in millions) Cash, accounts receivable and other current assets (1) $ 3,317 (14 ) 3,303 Property, plant and equipment 9,311 113 9,424 Identifiable intangible assets (2) Customer relationships 8,964 (476 ) 8,488 Other 391 (13 ) 378 Other noncurrent assets 782 184 966 Current liabilities, excluding current maturities of long-term debt (1,461 ) (20 ) (1,481 ) Current maturities of long-term debt (7 ) — (7 ) Long-term debt (10,888 ) — (10,888 ) Deferred revenue and other liabilities (1,613 ) (85 ) (1,698 ) Goodwill 10,837 306 11,143 Total estimated aggregate consideration $ 19,633 (5 ) 19,628 (1) Includes a preliminary estimated fair value of $861 million for accounts receivable, which had a gross contractual value of $884 million on November 1, 2017. The $23 million difference between the gross contractual value and the preliminary estimated fair value assigned represents our best estimate as of November 1, 2017 of contractual cash flows that will not be collected. (2) The preliminary estimate of the weighted-average amortization period for the acquired intangible assets is approximately 12.0 years . (3) All purchase price adjustments occurred during the six months ended June 30, 2018 .
Summary of Acquisition Related Expenses	The table below summarizes our acquisition-related expenses, which consist of integration-related expenses, including severance and retention compensation expenses, and transaction-related expenses: Successor Predecessor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in millions) Transaction-related expenses $ — — 2 5 Integration-related expenses 59 77 20 38 Total acquisition-related expenses $ 59 77 22 43

Goodwill, Customer Relationsh23

Goodwill, Customer Relationships and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Acquired Intangible Assets Disclosure [Abstract]
Schedule of acquisition-related intangible assets	Goodwill, customer relationships and other intangible assets consisted of the following: June 30, 2018 December 31, 2017 (Dollars in millions) Goodwill $ 11,078 10,837 Customer relationships, less accumulated amortization of $477 and $126 $ 7,990 8,845 Other intangible assets subject to amortization: Trade names, less accumulated amortization of $17 and $4 113 126 Developed technology, less accumulated amortization of $37 and $9 283 252 Total other intangible assets, net $ 396 378
Schedule of estimated amortization expense of finite-lived acquisition-related intangible assets	We estimate that total amortization expense for intangible assets for the successor years ending December 31, 2018 through 2022 will be as follows: (Dollars in millions) 2018 (remaining six months) $ 402 2019 805 2020 805 2021 805 2022 792
Schedule of Goodwill	The following table shows the rollforward of goodwill from December 31, 2017 through June 30, 2018: (Dollars in millions) As of December 31, 2017 $ 10,837 Purchase accounting and other adjustments 306 Effect of foreign currency rate change (65 ) As of June 30, 2018 $ 11,078

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Effects of New Accounting Pronouncement	The following tables present our reported results under ASC 606 and a reconciliation to results using the historical accounting method: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Operating revenues $ 2,052 — 2,052 4,139 — 4,139 Cost of services and products (exclusive of depreciation and amortization) 980 — 980 1,978 — 1,978 Selling, general and administrative 388 7 395 732 20 752 Income tax expense 44 (2 ) 42 146 (5 ) 141 Net income 40 (5 ) 35 102 (15 ) 87 The following table presents a reconciliation of certain consolidated balance sheet captions under ASC 606 to the balance sheet results using the historical accounting method: June 30, 2018 (Dollars in millions) Reported Balances as of June 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Other current assets $ 201 (16 ) 185 Deferred income tax assets, net 281 9 290 Other long-term assets, net 108 (18 ) 90 Member's equity 18,749 (25 ) 18,724
Disaggregation of Revenue	The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and six months ended June 30, 2018 , respectively. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards. Successor Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) (Dollars in millions) Total Revenues Adjustments (7) Total Revenue from Contracts with Customers Total Revenues Adjustments (7) Total Revenue from Contracts with Customers IP & Data Services (4) $ 987 — 987 1,990 — 1,990 Transport & Infrastructure (3) 673 (52 ) 621 1,348 (94 ) 1,254 Voice & Collaboration (1) 363 — 363 744 — 744 IT and Managed Services (2) 1 — 1 2 — 2 Other revenues (5) 1 (1 ) — 3 (3 ) — Affiliate revenues (6) 27 (27 ) — 52 (52 ) — Total revenues $ 2,052 (80 ) 1,972 4,139 (149 ) 3,990 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,972 3,990 Total revenue from contracts with customers $ 1,972 $ 3,990 (1) Includes local, long-distance and other ancillary revenues. (2) Includes IT services and managed services revenues. (3) Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenues. (4) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (5) Includes sublease rental income. (6) Includes telecommunications and data services we bill to our affiliates. (7) Includes sublease rental income and revenue from fiber capacity lease arrangements which are not within the scope of ASC 606. Our operating revenues for our products and services consisted of the following categories: Successor Predecessor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in millions) IP and data services $ 987 1,990 986 1,958 Transport and infrastructure 673 1,348 688 1,366 Voice and collaboration 363 744 386 782 IT and managed services 1 2 — — Other 1 3 2 4 Affiliate 27 52 — — Total revenues $ 2,052 4,139 2,062 4,110
Contract with Customer, Asset and Liability	The following table provides information about revenues recognized for the three and six months ended June 30, 2018 : Successor Three Months Ended March 31, 2018 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period (January 1, 2018) $ 97 16 113 Performance obligations satisfied in previous periods — — — The following table provides balances of customer receivables and contract liabilities as of June 30, 2018 and January 1, 2018: Successor June 30, 2018 January 1, 2018 (Dollars in millions) Customer receivables (1) $ 744 748 Contract liabilities 392 353 (1) Gross customer receivables of $753 and $751 , net of allowance for doubtful accounts of $9 and $3 , at June 30, 2018 and January 1, 2018, respectively.
Capitalized Contract Cost	The following table provides changes in our contract acquisition costs and fulfillment costs for the three and six months ended June 30, 2018 : Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Acquisition Costs Fulfillment Costs Acquisition Costs Fulfillment Costs Beginning of period balance $ 26 35 13 14 Costs incurred 11 24 26 47 Amortization (3 ) (7 ) (5 ) (9 ) End of period balance $ 34 52 34 52

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of long-term debt	The following table summarizes our long-term debt: Interest Rates Maturities June 30, 2018 December 31, 2017 (Dollars in millions) Level 3 Parent, LLC Senior notes (1) 5.750% 2022 $ 600 600 Subsidiaries Level 3 Financing, Inc. Senior notes (2) 5.125% - 6.125% 2021 - 2026 5,315 5,315 Term loan (3) LIBOR + 2.25% 2024 4,611 4,611 Capital leases Various Various 174 179 Total long-term debt, excluding unamortized premiums 10,700 10,705 Unamortized premiums, net 170 185 Total long-term debt 10,870 10,890 Less current maturities (13 ) (8 ) Long-term debt, excluding current maturities $ 10,857 10,882 (1) The notes are not guaranteed by any of Level 3 Parent, LLC's subsidiaries. (2) The notes are fully and unconditionally guaranteed on an unsubordinated unsecured basis by Level 3 Parent, LLC and Level 3 Communications, LLC. (3) The Tranche B 2024 Term Loan is a secured obligation and is guaranteed by Level 3 Parent, LLC and certain other subsidiaries. The Tranche B 2024 Term Loan had an interest rate of 4.334% as of June 30, 2018 and 3.557% as of December 31, 2017 . The interest rate on the Tranche B 2024 Term Loan is set with a minimum London Interbank Offered Rate ("LIBOR ") of zero percent.
Schedule of aggregate future contractual maturities of long-term debt and capital leases (excluding discounts)	Set forth below is the aggregate principal amount of our long-term debt and capital leases (excluding unamortized premiums) maturing during the following years: (Dollars in millions) 2018 (remaining six months) $ 7 2019 8 2020 10 2021 651 2022 1,726 2023 and thereafter 8,298 Total long-term debt $ 10,700

Severance and Restructuring C26

Severance and Restructuring Costs (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Changes in our accrued liabilities for severance expenses and restructuring costs were as follows: Successor Severance Restructuring (Dollars in millions) Balance at January 1, 2018 $ 5 4 Accrued to expense 12 46 Payments, net (12 ) (1 ) Balance at June 30, 2018 $ 5 49

Products and Services Revenues

Products and Services Revenues (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and six months ended June 30, 2018 , respectively. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards. Successor Successor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) (Dollars in millions) Total Revenues Adjustments (7) Total Revenue from Contracts with Customers Total Revenues Adjustments (7) Total Revenue from Contracts with Customers IP & Data Services (4) $ 987 — 987 1,990 — 1,990 Transport & Infrastructure (3) 673 (52 ) 621 1,348 (94 ) 1,254 Voice & Collaboration (1) 363 — 363 744 — 744 IT and Managed Services (2) 1 — 1 2 — 2 Other revenues (5) 1 (1 ) — 3 (3 ) — Affiliate revenues (6) 27 (27 ) — 52 (52 ) — Total revenues $ 2,052 (80 ) 1,972 4,139 (149 ) 3,990 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,972 3,990 Total revenue from contracts with customers $ 1,972 $ 3,990 (1) Includes local, long-distance and other ancillary revenues. (2) Includes IT services and managed services revenues. (3) Includes primarily broadband, private line (including business data services), colocation and data centers, wavelength and ancillary revenues. (4) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (5) Includes sublease rental income. (6) Includes telecommunications and data services we bill to our affiliates. (7) Includes sublease rental income and revenue from fiber capacity lease arrangements which are not within the scope of ASC 606. Our operating revenues for our products and services consisted of the following categories: Successor Predecessor Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in millions) IP and data services $ 987 1,990 986 1,958 Transport and infrastructure 673 1,348 688 1,366 Voice and collaboration 363 744 386 782 IT and managed services 1 2 — — Other 1 3 2 4 Affiliate 27 52 — — Total revenues $ 2,052 4,139 2,062 4,110

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value of liabilities measured on a recurring basis	The following table presents the carrying amounts and estimated fair values of our long-term debt, excluding capital lease and other obligations, as well as the input level used to determine the fair values indicated below: June 30, 2018 December 31, 2017 Input Level Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in millions) Liabilities-Long-term debt, excluding capital lease and other obligations 2 $ 10,696 10,413 10,711 10,528

Other Financial Information (Ta

Other Financial Information (Tables)	6 Months Ended
	Jun. 30, 2018
Statement of Financial Position [Abstract]
Schedule of Other Assets and Other Liabilities	The following table presents details of other current liabilities in our consolidated balance sheets: Successor June 30, 2018 December 31, 2017 (Dollars in millions) Self-insurance $ 12 11 Legal and tax reserves 13 31 Other 20 15 Total other current liabilities $ 45 57 The following table presents details of other current assets in our consolidated balance sheets: Successor June 30, 2018 December 31, 2017 (Dollars in millions) Prepaid expenses $ 90 68 Material, supplies and inventory 4 3 Deferred activation and installation charges 19 17 Deferred commissions 16 — Other 72 29 Total other current assets $ 201 117

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Income Loss (Tables)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The tables below summarize changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the successor six months ended June 30, 2018 : Foreign Currency Translation Adjustment and Other Total (Dollars in millions) Balance at December 31, 2017 $ 18 18 Other comprehensive loss before reclassifications, net of tax (163 ) (163 ) Cumulative effect of adoption of ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 6 6 Net other comprehensive loss (157 ) (157 ) Balance at June 30, 2018 $ (139 ) (139 ) The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the predecessor six months ended June 30, 2017 : Pension Plans Foreign Currency Translation Adjustment and Other Total (Dollars in millions) Balance at December 31, 2016 $ (34 ) (353 ) (387 ) Other comprehensive income before reclassifications, net of tax 1 62 63 Amounts reclassified from accumulated other comprehensive loss (1 ) — (1 ) Net other comprehensive income — 62 62 Balance at June 30, 2017 $ (34 ) (291 ) (325 )

Condensed Consolidating Finan31

Condensed Consolidating Financial Information (Tables)	6 Months Ended
	Jun. 30, 2018
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Statements of Comprehensive Income (Loss)	Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2018 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING REVENUES Operating revenues $ — — 977 1,091 (43 ) 2,025 Operating revenues - affiliate — — 6 21 — 27 Total operating revenues — — 983 1,112 (43 ) 2,052 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 600 423 (43 ) 980 Selling, general and administrative — 2 286 100 — 388 Operating expenses - affiliates — — 37 18 — 55 Depreciation and amortization — — 174 259 — 433 Total operating expenses — 2 1,097 800 (43 ) 1,856 OPERATING INCOME (LOSS) — (2 ) (114 ) 312 — 196 OTHER INCOME (EXPENSE) Interest income — — 1 — (1 ) — Interest income - affiliate 16 — — — — 16 Interest expense (8 ) (113 ) — (4 ) 1 (124 ) Interest income (expense) - intercompany, net 348 604 (878 ) (74 ) — — Equity in net earnings (losses) of subsidiaries (316 ) (832 ) — — 1,148 — Other income, net — — 2 (6 ) — (4 ) Total other income (expense) 40 (341 ) (875 ) (84 ) 1,148 (112 ) INCOME (LOSS) BEFORE INCOME TAXES 40 (343 ) (989 ) 228 1,148 84 Income tax benefit (expense) — 27 13 (84 ) — (44 ) NET INCOME (LOSS) 40 (316 ) (976 ) 144 1,148 40 Other comprehensive income (loss), net of income taxes (235 ) — — (235 ) 235 (235 ) COMPREHENSIVE INCOME (LOSS) $ (195 ) $ (316 ) $ (976 ) $ (91 ) $ 1,383 $ (195 ) Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2017 (Predecessor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING REVENUES Operating revenues $ — — 934 1,174 (46 ) 2,062 Operating revenues - affiliate — — — — — — Total operating revenues — — 934 1,174 (46 ) 2,062 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 602 479 (46 ) 1,035 Selling, general and administrative expenses 1 1 294 71 — 367 Operating expenses - affiliate — — — — — — Depreciation and amortization — — 92 215 — 307 Total operating expenses 1 1 988 765 (46 ) 1,709 OPERATING INCOME (LOSS) (1 ) (1 ) (54 ) 409 — 353 OTHER INCOME (EXPENSE) Interest income — — 3 — — 3 Interest income - affiliate — — — — — — Interest expense (9 ) (117 ) (1 ) (4 ) — (131 ) Interest income (expense) - intercompany, net 378 567 (868 ) (77 ) — — Equity in net earnings (losses) of subsidiaries (216 ) (632 ) 200 — 648 — Other income, net — — (2 ) — — (2 ) Total other income (expense) 153 (182 ) (668 ) (81 ) 648 (130 ) INCOME (LOSS) BEFORE INCOME TAXES 152 (183 ) (722 ) 328 648 223 Income tax benefit (expense) 2 (33 ) (1 ) (37 ) — (69 ) NET INCOME (LOSS) 154 (216 ) (723 ) 291 648 154 Other comprehensive income (loss), net of income taxes 41 — — 41 (41 ) 41 COMPREHENSIVE INCOME (LOSS) $ 195 (216 ) (723 ) 332 607 195
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets June 30, 2018 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 21 — 180 81 — 282 Restricted cash and securities — — 2 3 — 5 Assets held for sale — — 1 14 — 15 Accounts receivable — — 65 679 — 744 Accounts receivable - affiliate — — 4 31 (31 ) 4 Intercompany advances 16,727 23,346 — 4,303 (44,376 ) — Note receivable - affiliate 1,825 — — — — 1,825 Other — 3 101 97 — 201 Total current assets 18,573 23,349 353 5,208 (44,407 ) 3,076 Property, plant, and equipment, net — — 3,147 6,249 — 9,396 Restricted cash and securities 15 — 10 — — 25 GOODWILL AND OTHER ASSETS Goodwill — — 9,423 1,655 — 11,078 Customer relationships, net — — 3,897 4,093 — 7,990 Other intangible assets, net — — 396 — — 396 Investment in subsidiaries 16,955 19,501 3,605 — (40,061 ) — Deferred tax assets 281 1,868 167 — (1,833 ) 483 Other, net — 3 62 43 — 108 Total goodwill and other assets 17,236 21,372 17,550 5,791 (41,894 ) 20,055 TOTAL ASSETS $ 35,824 44,721 21,060 17,248 (86,301 ) 32,552 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ — — 2 11 — 13 Accounts payable — 1 285 295 — 581 Accounts payable - affiliate 48 — 89 — (31 ) 106 Income and other taxes — — 43 38 — 81 Salaries and benefits — — 162 37 — 199 Interest 11 77 — 6 — 94 Current portion of deferred revenue — — 153 132 — 285 Intercompany payables — — 44,376 — (44,376 ) — Other — — 26 19 — 45 Total current liabilities 59 78 45,136 538 (44,407 ) 1,404 LONG-TERM DEBT 615 10,082 13 147 — 10,857 DEFERRED REVENUE AND OTHER LIABILITIES Deferred revenues — — 931 207 — 1,138 Deferred income taxes 651 14 839 531 (1,833 ) 202 Other — — 163 178 — 341 Total deferred revenue and other liabilities 651 14 1,933 916 (1,833 ) 1,681 COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY (DEFICIT) 34,499 34,547 (26,022 ) 15,647 (40,061 ) 18,610 TOTAL LIABILITIES AND MEMBER'S EQUITY $ 35,824 44,721 21,060 17,248 (86,301 ) 32,552 Condensed Consolidating Balance Sheets December 31, 2017 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) ASSETS CURRENT ASSETS Cash and cash equivalents $ 13 — 175 109 — 297 Restricted cash and securities — — 1 4 — 5 Assets held for sale 68 — 5 67 — 140 Accounts receivable — — 26 722 — 748 Accounts receivable - affiliate — — 60 4 (51 ) 13 Intercompany advances 16,251 21,032 — 5,200 (42,483 ) — Note receivable - affiliate 1,825 — — — — 1,825 Other — — 54 63 — 117 Total current assets 18,157 21,032 321 6,169 (42,534 ) 3,145 Property, plant, and equipment, net — — 3,237 6,175 — 9,412 Restricted cash and securities 19 — 10 — — 29 GOODWILL AND OTHER ASSETS Goodwill — — 1,200 9,637 — 10,837 Customer relationships, net — — 4,324 4,521 — 8,845 Other intangible assets, net — — 378 — — 378 Investment in subsidiaries 16,954 18,403 3,616 — (38,973 ) — Deferred tax assets 280 1,795 — 122 (1,771 ) 426 Other, net — — 32 31 — 63 Total goodwill and other assets 17,234 20,198 9,550 14,311 (40,744 ) 20,549 TOTAL ASSETS $ 35,410 41,230 13,118 26,655 (83,278 ) 33,135 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ — — 2 6 — 8 Accounts payable — 1 323 371 — 695 Accounts payable - affiliate 11 — — 81 (51 ) 41 Accrued expenses and other liabilities Income and other taxes — — 55 45 — 100 Salaries and benefits — — 109 27 — 136 Interest 11 91 — 7 — 109 Current portion of deferred revenue — — 129 131 — 260 Intercompany payables — — 42,483 — (42,483 ) — Other 16 — 23 18 — 57 Total current liabilities 38 92 43,124 686 (42,534 ) 1,406 LONG-TERM DEBT 616 10,096 13 157 — 10,882 DEFERRED REVENUE AND OTHER LIABILITIES Deferred revenues — — 846 253 — 1,099 Deferred income taxes 648 — 870 465 (1,771 ) 212 Other 1 1 98 164 — 264 Total deferred revenue and other liabilities 649 1 1,814 882 (1,771 ) 1,575 COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY (DEFICIT) 34,107 31,041 (31,833 ) 24,930 (38,973 ) 19,272 TOTAL LIABILITIES AND MEMBER'S EQUITY $ 35,410 41,230 13,118 26,655 (83,278 ) 33,135
Condensed Consolidating Statements of Cash Flows	Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 (Successor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING ACTIVITIES Net cash provided by (used in) operating activities $ (85 ) — 899 204 — 1,018 INVESTING ACTIVITIES Capital expenditures — — (289 ) (257 ) — (546 ) Proceeds from the sale of property, plant and equipment and other assets 68 — — 51 — 119 Net cash provided by (used in) investing activities 68 — (289 ) (206 ) — (427 ) FINANCING ACTIVITIES Payments of long-term debt — — — (3 ) — (3 ) Distributions (605 ) — — — — (605 ) Increase (decrease) due from/to affiliates, net 605 — (605 ) — — — Net cash provided by (used in) financing activities — — (605 ) (3 ) — (608 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — (2 ) — (2 ) Net increase (decrease) in cash, cash equivalents and restricted cash and securities (17 ) — 5 (7 ) — (19 ) Cash, cash equivalents and restricted cash and securities and beginning of period 32 — 186 113 — 331 Cash, cash equivalents and restricted cash and securities and end of period $ 15 — 191 106 — 312 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 (Predecessor) Level 3 Parent, LLC Level 3 Financing, Inc. Level 3 Communications, LLC Other Non-Guarantor Subsidiaries Eliminations Total (Dollars in millions) OPERATING ACTIVITIES Net Cash Provided by (Used in) Operating Activities $ (14 ) (267 ) 352 1,029 — 1,100 INVESTING ACTIVITIES Capital expenditures — — (427 ) (269 ) — (696 ) Purchase of marketable securities — — (1,127 ) — — (1,127 ) Net cash provided by (used in) investing activities — — (1,554 ) (269 ) — (1,823 ) FINANCING ACTIVITIES Net proceeds from issuance of long-term debt — 4,569 — — — 4,569 Payments of long-term debt — (4,611 ) (1 ) (3 ) — (4,615 ) Increase (decrease) due from/to affiliates, net 10 309 442 (761 ) — — Net cash provided by (used in) financing activities 10 267 441 (764 ) — (46 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — 2 — 2 Net increase (decrease) in cash, cash equivalents and restricted cash and securities (4 ) — (761 ) (2 ) — (767 ) Cash, cash equivalents and restricted cash and securities and beginning of period 37 — 1,710 110 — 1,857 Cash, cash equivalents and restricted cash and securities and end of period $ 33 — 949 108 — 1,090

Background (Details)

Background (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
New Accounting Pronouncement, Early Adoption [Line Items]
Provisional income tax expense (benefit)			$ 195
Provisional income tax expense (benefit), purchase accounting adjustment	$ 76
Minimum
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	12 months
Minimum | Contract Acquisition and Fulfillment Costs
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	12 months
Maximum
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	60 months
Maximum | Contract Acquisition and Fulfillment Costs
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	60 months
Adjustments for New Accounting Pronouncement
New Accounting Pronouncement, Early Adoption [Line Items]
Production and distribution costs		$ 47
Accounting Standards Update 2014-09 | Accumulated Deficit
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect of new accounting principle in period of adoption			9
Cumulative effect of new accounting, tax			$ 3
Accounting Standards Update 2018-02
New Accounting Pronouncement, Early Adoption [Line Items]
Reclassification from AOCI to retained earnings, tax effect	$ 6

CenturyLink Merger - Additional

CenturyLink Merger - Additional Information (Details) $ in Millions	Jan. 22, 2018USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Nov. 01, 2017citydark_fiber
Business Acquisition [Line Items]
Selling price	$ 68
Goodwill		$ 11,078	$ 10,837
CenturyLink | Level 3 Parent, LLC
Business Acquisition [Line Items]
Consideration transferred		19,628
Number of strands of dark fiber divested | dark_fiber				24
Number of cities connected by dark fiber | city				30
Goodwill		$ 11,143	$ 10,837

CenturyLink Merger - Preliminar

CenturyLink Merger - Preliminary Estimated Aggregate Consideration (Details) - USD ($) $ in Millions	Nov. 01, 2017	Jun. 30, 2018	Dec. 31, 2017
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill		$ 11,078	$ 10,837
CenturyLink | Level 3 Parent, LLC
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash, accounts receivable and other current assets		3,303	3,317
Property, plant and equipment		9,424	9,311
Other noncurrent assets		966	782
Current liabilities, excluding current maturities of long-term debt		(1,481)	(1,461)
Current maturities of long-term debt		(7)	(7)
Long-term debt		(10,888)	(10,888)
Deferred revenue and other liabilities		(1,698)	(1,613)
Goodwill		11,143	10,837
Total estimated aggregate consideration		19,628	19,633
Purchase Price Adjustments
Cash, accounts receivable and other current assets		(14)
Property, plant and equipment		113
Other noncurrent assets		184
Current liabilities, excluding current maturities of long-term debt		(20)
Current maturities of long-term debt		0
Long-term debt		0
Deferred revenue and other liabilities		(85)
Goodwill		306
Total estimated aggregate consideration		(5)
Accounts receivable	$ 861
Accounts receivable contractual value	884
Accounts receivable, uncollectible	$ 23
Acquired finite-lived intangible assets weighted average remaining useful lives	12 years
CenturyLink | Customer Relationships | Level 3 Parent, LLC
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Identifiable intangible assets		8,488	8,964
Purchase Price Adjustments
Identifiable intangible assets		(476)
CenturyLink | Other Intangible Assets | Level 3 Parent, LLC
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Identifiable intangible assets		378	$ 391
Purchase Price Adjustments
Identifiable intangible assets		$ (13)

CenturyLink Merger - Acquisitio

CenturyLink Merger - Acquisition Related Expenses (Details) - CenturyLink - Level 3 Parent, LLC - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Transaction-related expenses	$ 0		$ 0
Integration-related expenses	59		77
Total acquisition-related expenses	$ 59		$ 77
Predecessor
Business Acquisition [Line Items]
Transaction-related expenses		$ 2		$ 5
Integration-related expenses		20		38
Total acquisition-related expenses		$ 22		$ 43

Goodwill, Customer Relationsh36

Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 11,078	$ 10,837
Customer Contracts And Relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	7,990	8,845
Accumulated amortization	477	126
Trade Names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	113	126
Accumulated amortization	17	4
Patents and Developed Technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	283	252
Accumulated amortization	37	9
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 396	$ 378

Goodwill, Customer Relationsh37

Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Valuation allowance, available to reduce goodwill					$ 16
Acquired finite-lived intangible asset amortization expense	$ 202	$ 52	$ 396	$ 97
Intangible assets including goodwill, noncurrent	$ 20,055		$ 20,055		$ 20,549

Goodwill, Customer Relationsh38

Goodwill, Customer Relationships and Other Intangible Assets - Amortization Expense (Details) $ in Millions	Jun. 30, 2018USD ($)
Estimated amortization expense of finite-lived acquisition-related intangible assets
2018 (remaining six months)	$ 402
2,019	805
2,020	805
2,021	805
2,022	$ 792

Goodwill, Customer Relationsh39

Goodwill, Customer Relationships and Other Intangible Assets - Goodwill Activity (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill [Roll Forward]
As of December 31, 2017	$ 10,837
Purchase accounting and other adjustments	306
Effect of foreign currency rate change	(65)
As of June 30, 2018	$ 11,078

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) $ in Billions	6 Months Ended
	Jun. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 6.5
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Length of customer life	30 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	51.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, timing of satisfaction	1 year 6 months
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract term	1 year
Average expected contract term	10 years
Amortization period	12 months
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract term	7 years
Average expected contract term	20 years
Amortization period	60 months

Revenue Recognition - Effects o

Revenue Recognition - Effects of ASC 606 (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 2,052	$ 4,139
Cost of services and products (exclusive of depreciation and amortization)	980	1,978
Selling, general and administrative	388	732
Income tax expense	44	146
Net income	40	102
Other current assets	201	201	$ 117
Deferred income taxes	281	281
Other long-term assets, net	108	108	63
Member's equity	18,749	18,749	$ 19,254
Impact of 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	0	0
Cost of services and products (exclusive of depreciation and amortization)	0	0
Selling, general and administrative	7	20
Income tax expense	(2)	(5)
Net income	(5)	(15)
Other current assets	(16)	(16)
Deferred income taxes	9	9
Other long-term assets, net	(18)	(18)
Member's equity	(25)	(25)
ASC 605 Historical Adjusted Balances
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	2,052	4,139
Cost of services and products (exclusive of depreciation and amortization)	980	1,978
Selling, general and administrative	395	752
Income tax expense	42	141
Net income	35	87
Other current assets	185	185
Deferred income taxes	290	290
Other long-term assets, net	90	90
Member's equity	$ 18,724	$ 18,724

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Total Revenues	$ 2,052		$ 4,139
Adjustments	(80)		(149)
Total revenue from contracts with customers	1,972		3,990
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0		0
Transferred over Time
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,972		3,990
IP & Data Services
Disaggregation of Revenue [Line Items]
Total Revenues	987		1,990
Adjustments	0		0
Total revenue from contracts with customers	987		1,990
Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Total Revenues	673		1,348
Adjustments	(52)		(94)
Total revenue from contracts with customers	621		1,254
Voice & Collaboration
Disaggregation of Revenue [Line Items]
Total Revenues	363		744
Adjustments	0		0
Total revenue from contracts with customers	363		744
IT & Managed Services
Disaggregation of Revenue [Line Items]
Total Revenues	1		2
Adjustments	0		0
Total revenue from contracts with customers	1		2
Other
Disaggregation of Revenue [Line Items]
Total Revenues	1	$ 2	3	$ 4
Adjustments	(1)		(3)
Total revenue from contracts with customers	0		0
Affiliate Revenues
Disaggregation of Revenue [Line Items]
Total Revenues	27		52
Adjustments	(27)		(52)
Total revenue from contracts with customers	$ 0		$ 0

Revenue Recognition - Contract

Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Customer receivables	$ 744,000	$ 748,000
Contract liabilities	392,000	353,000
Accounts receivable, gross	753	751
Allowance for doubtful accounts receivable	$ 9	$ 3

Revenue Recognition - Deferred

Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized from amounts included in contract liability at the beginning of the period (January 1, 2018)	$ 16	$ 97	$ 113
Revenue recognized from performance obligations satisfied in previous periods	$ 0	$ 0	$ 0

Revenue Recognition - Capitaliz

Revenue Recognition - Capitalized Contract Cost (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Contract Acquisition Costs
Capitalized Contract Cost [Roll Forward]
Beginning of period balance	$ 26	$ 13
Costs incurred	11	26
Amortization	(3)	(5)
End of period balance	34	34
Contract Fulfillment Costs
Capitalized Contract Cost [Roll Forward]
Beginning of period balance	35	14
Costs incurred	24	47
Amortization	(7)	(9)
End of period balance	$ 52	$ 52

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 10,700	$ 10,705
Unamortized premiums, net	170	185
Total long-term debt	10,870	10,890
Less current maturities	(13)	(8)
Long-term debt, excluding current maturities	$ 10,857	10,882
Senior Notes, 5.75% Due 2022
Long-term debt
Stated interest rate	5.75%
Total long-term debt, excluding unamortized premiums	$ 600	600
Senior Notes with Varied Maturity Date
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 5,315	5,315
Senior Notes with Varied Maturity Date | Minimum
Long-term debt
Stated interest rate	5.125%
Senior Notes with Varied Maturity Date | Maximum
Long-term debt
Stated interest rate	6.125%
Tranche B 2024
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 4,611	$ 4,611
Effective percentage	4.334%	3.557%
Tranche B 2024 | London Interbank Offered Rate (LIBOR)
Long-term debt
Basis spread on variable rate	2.25%
Tranche B 2024 | London Interbank Offered Rate (LIBOR) | Minimum
Long-term debt
Basis spread on variable rate	0.00%
Capital Leases
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 174	$ 179

Long-Term Debt - Debt Maturitie

Long-Term Debt - Debt Maturities (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2018 (remaining nine months)	$ 7
2,019	8
2,020	10
2,021	651
2,022	1,726
2023 and thereafter	8,298
Total long-term debt, excluding unamortized premiums	$ 10,700	$ 10,705

Severance and Restructuring C48

Severance and Restructuring Costs (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Employee Severance
Restructuring Reserve [Roll Forward]
Balance at January 1, 2018	$ 5
Accrued to expense	12
Payments, net	(12)
Balance at June 30, 2018	5
Restructuring Excluding Severance
Restructuring Reserve [Roll Forward]
Balance at January 1, 2018	4
Accrued to expense	46
Payments, net	(1)
Balance at June 30, 2018	$ 49

Products and Services Revenue49

Products and Services Revenues - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)category	Jun. 30, 2017USD ($)
Disaggregation of Revenue [Line Items]
Number of categories of products and services | category			6
Operating revenues	$ 2,052		$ 4,139
Predecessor
Disaggregation of Revenue [Line Items]
Operating revenues		$ 2,062		$ 4,110
USF Surcharge and Transaction Taxes [Member]
Disaggregation of Revenue [Line Items]
Operating revenues	$ 98		$ 205
USF Surcharge and Transaction Taxes [Member] | Predecessor
Disaggregation of Revenue [Line Items]
Operating revenues		$ 100		$ 198

Products and Services Revenue50

Products and Services Revenues - Operating Revenues for Products and Services (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Operating revenues	$ 2,052		$ 4,139
IP & Data Services
Disaggregation of Revenue [Line Items]
Operating revenues	987		1,990
Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Operating revenues	673		1,348
Voice & Collaboration
Disaggregation of Revenue [Line Items]
Operating revenues	363		744
IT & Managed Services
Disaggregation of Revenue [Line Items]
Operating revenues	1		2
Other
Disaggregation of Revenue [Line Items]
Operating revenues	1	$ 2	3	$ 4
Affiliate Revenues
Disaggregation of Revenue [Line Items]
Operating revenues	$ 27		$ 52
Predecessor
Disaggregation of Revenue [Line Items]
Operating revenues		2,062		4,110
Predecessor | IP & Data Services
Disaggregation of Revenue [Line Items]
Operating revenues		986		1,958
Predecessor | Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Operating revenues		688		1,366
Predecessor | Voice & Collaboration
Disaggregation of Revenue [Line Items]
Operating revenues		386		782
Predecessor | IT & Managed Services
Disaggregation of Revenue [Line Items]
Operating revenues		0		0
Predecessor | Affiliate Revenues
Disaggregation of Revenue [Line Items]
Operating revenues		$ 0		$ 0

Fair Value of Financial Instr51

Fair Value of Financial Instruments - Liabilities, Recurring (Details) - Fair Value, Measurements, Recurring - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities-Long-term debt, excluding capital lease and other obligations	$ 10,696	$ 10,711
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities-Long-term debt, excluding capital lease and other obligations	$ 10,413	$ 10,528

Commitments, Contingencies an52

Commitments, Contingencies and Other Items - Lawsuits (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)Employeecontract
Loss Contingencies
Estimated litigation liability	$ 76
Peruvian Tax Litigation, Before Interest | Pending Litigation
Loss Contingencies
Asserted claim	26
Peruvian Tax Litigation | Pending Litigation
Loss Contingencies
Asserted claim	13
Employee Severance and Contractor Termination Disputes | Pending Litigation
Loss Contingencies
Asserted claim	30
Brazilian Tax Claims
Loss Contingencies
Estimate of possible loss	$ 35
United States of America ex rel., Stephen Bishop v. Level 3 Communications, Inc. et al.
Loss Contingencies
Number of former employees names in lawsuit | Employee	2
Number of government contracts in question | contract	2
Damages sought, value	$ 50

Commitments, Contingencies an53

Commitments, Contingencies and Other Items - Other Commitments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Amount outstanding under letters of credit or other similar obligations	$ 32	$ 32
Collateralized by cash, that is reflected on the consolidated balance sheets as restricted cash	$ 26	$ 26

Other Financial Information - O

Other Financial Information - Other Current Assets (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 90	$ 68
Material, supplies and inventory	4	3
Deferred activation and installation charges	19	17
Deferred commissions	16	0
Other	72	29
Total other current assets	$ 201	$ 117

Other Financial Information -55

Other Financial Information - Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Self-insurance	$ 12	$ 11
Legal and tax reserves	13	31
Other	20	15
Total other current liabilities	$ 45	$ 57

Accumulated Other Comprehensi56

Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period	$ 19,272
Other comprehensive loss before reclassifications, net of tax	(163)	$ 63
Cumulative effect of adoption of ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	6	(1)
Net other comprehensive loss	(157)	62
Balance at end of period	18,610
Pension Plans
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period		(34)
Other comprehensive loss before reclassifications, net of tax		1
Cumulative effect of adoption of ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income		(1)
Net other comprehensive loss		0
Balance at end of period		(34)
Foreign Currency Translation Adjustment and Other
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period	18	(353)
Other comprehensive loss before reclassifications, net of tax	(163)	62
Cumulative effect of adoption of ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	6	0
Net other comprehensive loss	(157)	62
Balance at end of period	(139)	(291)
AOCI Attributable to Parent
Accumulated Other Comprehensive Loss [Line Items]
Balance at beginning of period	18	(387)
Balance at end of period	$ (139)	$ (325)

Condensed Consolidating Finan57

Condensed Consolidating Financial Information - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidating Financial Information
Operating revenues	$ 2,052		$ 4,139
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	980		1,978
Selling, general and administrative	388		732
Operating expenses - affiliates	55		108
Depreciation and amortization	433		864
Total operating expenses	1,856		3,682
OPERATING INCOME	196		457
OTHER INCOME (EXPENSE)
Interest income	0		1
Interest income - affiliate	16		32
Interest expense	(124)		(244)
Interest income (expense) - intercompany, net	0		0
Equity in net earnings (losses) of subsidiaries	0		0
Loss on modification and extinguishment of debt	0		0
Other (expense) income, net	(4)		2
Total other expense, net	(112)		(209)
INCOME (LOSS) BEFORE INCOME TAXES	84		248
Income tax expense	(44)		(146)
NET INCOME	40		102
Other comprehensive (loss) income	(235)		(163)
COMPREHENSIVE INCOME (LOSS)	(195)		(61)
Eliminations
Condensed Consolidating Financial Information
Operating revenues	(43)		(83)
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	(43)		(83)
Selling, general and administrative	0		0
Operating expenses - affiliates	0		0
Depreciation and amortization	0		0
Total operating expenses	(43)		(83)
OPERATING INCOME	0		0
OTHER INCOME (EXPENSE)
Interest income	(1)		(1)
Interest income - affiliate	0		0
Interest expense	1		1
Interest income (expense) - intercompany, net	0		0
Equity in net earnings (losses) of subsidiaries	1,148		2,303
Other (expense) income, net	0		0
Total other expense, net	1,148		2,303
INCOME (LOSS) BEFORE INCOME TAXES	1,148		2,303
Income tax expense	0		0
NET INCOME	1,148		2,303
Other comprehensive (loss) income	235		163
COMPREHENSIVE INCOME (LOSS)	1,383		2,466
Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	0		0
Selling, general and administrative	0		0
Operating expenses - affiliates	0		0
Depreciation and amortization	0		0
Total operating expenses	0		0
OPERATING INCOME	0		0
OTHER INCOME (EXPENSE)
Interest income	0		0
Interest income - affiliate	16		32
Interest expense	(8)		(16)
Interest income (expense) - intercompany, net	348		703
Equity in net earnings (losses) of subsidiaries	(316)		(631)
Other (expense) income, net	0		0
Total other expense, net	40		88
INCOME (LOSS) BEFORE INCOME TAXES	40		88
Income tax expense	0		14
NET INCOME	40		102
Other comprehensive (loss) income	(235)		(163)
COMPREHENSIVE INCOME (LOSS)	(195)		(61)
Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	0		0
Selling, general and administrative	2		0
Operating expenses - affiliates	0		3
Depreciation and amortization	0		0
Total operating expenses	2		3
OPERATING INCOME	(2)		(3)
OTHER INCOME (EXPENSE)
Interest income	0		0
Interest income - affiliate	0		0
Interest expense	(113)		(221)
Interest income (expense) - intercompany, net	604		1,212
Equity in net earnings (losses) of subsidiaries	(832)		(1,671)
Other (expense) income, net	0		0
Total other expense, net	(341)		(680)
INCOME (LOSS) BEFORE INCOME TAXES	(343)		(683)
Income tax expense	27		52
NET INCOME	(316)		(631)
Other comprehensive (loss) income	0		0
COMPREHENSIVE INCOME (LOSS)	(316)		(631)
Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	983		1,964
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	600		1,189
Selling, general and administrative	286		344
Operating expenses - affiliates	37		545
Depreciation and amortization	174		90
Total operating expenses	1,097		2,168
OPERATING INCOME	(114)		(204)
OTHER INCOME (EXPENSE)
Interest income	1		1
Interest income - affiliate	0		0
Interest expense	0		(1)
Interest income (expense) - intercompany, net	(878)		(1,759)
Equity in net earnings (losses) of subsidiaries	0		(1)
Other (expense) income, net	2		3
Total other expense, net	(875)		(1,757)
INCOME (LOSS) BEFORE INCOME TAXES	(989)		(1,961)
Income tax expense	13		(34)
NET INCOME	(976)		(1,995)
Other comprehensive (loss) income	0		0
COMPREHENSIVE INCOME (LOSS)	(976)		(1,995)
Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	1,112		2,258
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	423		872
Selling, general and administrative	100		520
Operating expenses - affiliates	18		184
Depreciation and amortization	259		18
Total operating expenses	800		1,594
OPERATING INCOME	312		664
OTHER INCOME (EXPENSE)
Interest income	0		1
Interest income - affiliate	0		0
Interest expense	(4)		(7)
Interest income (expense) - intercompany, net	(74)		(156)
Equity in net earnings (losses) of subsidiaries	0		0
Other (expense) income, net	(6)		(1)
Total other expense, net	(84)		(163)
INCOME (LOSS) BEFORE INCOME TAXES	228		501
Income tax expense	(84)		(178)
NET INCOME	144		323
Other comprehensive (loss) income	(235)		(163)
COMPREHENSIVE INCOME (LOSS)	(91)		160
Predecessor
Condensed Consolidating Financial Information
Operating revenues		$ 2,062		$ 4,110
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		1,035		2,086
Selling, general and administrative		367		731
Operating expenses - affiliates		0		0
Depreciation and amortization		307		603
Total operating expenses		1,709		3,420
OPERATING INCOME		353		690
OTHER INCOME (EXPENSE)
Interest income		3		5
Interest income - affiliate		0		0
Interest expense		(131)		(265)
Interest income (expense) - intercompany, net		0		0
Equity in net earnings (losses) of subsidiaries		0		0
Loss on modification and extinguishment of debt		0		(44)
Other (expense) income, net		(2)		2
Total other expense, net		(130)		(302)
INCOME (LOSS) BEFORE INCOME TAXES		223		388
Income tax expense		(69)		(139)
NET INCOME		154		249
Other comprehensive (loss) income		41		62
COMPREHENSIVE INCOME (LOSS)		195		311
Predecessor | Eliminations
Condensed Consolidating Financial Information
Operating revenues		(46)		(75)
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		(46)		(75)
Selling, general and administrative		0		0
Operating expenses - affiliates		0		0
Depreciation and amortization		0		0
Total operating expenses		(46)		(75)
OPERATING INCOME		0		0
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		0		0
Interest income (expense) - intercompany, net		0		0
Equity in net earnings (losses) of subsidiaries		648		1,366
Loss on modification and extinguishment of debt				0
Other (expense) income, net		0		0
Total other expense, net		648		1,366
INCOME (LOSS) BEFORE INCOME TAXES		648		1,366
Income tax expense		0		0
NET INCOME		648		1,366
Other comprehensive (loss) income		(41)		(62)
COMPREHENSIVE INCOME (LOSS)		607		1,304
Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		0		0
Selling, general and administrative		1		2
Operating expenses - affiliates		0		0
Depreciation and amortization		0		0
Total operating expenses		1		2
OPERATING INCOME		(1)		(2)
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		(9)		(18)
Interest income (expense) - intercompany, net		378		755
Equity in net earnings (losses) of subsidiaries		(216)		(491)
Loss on modification and extinguishment of debt				0
Other (expense) income, net		0		0
Total other expense, net		153		246
INCOME (LOSS) BEFORE INCOME TAXES		152		244
Income tax expense		2		5
NET INCOME		154		249
Other comprehensive (loss) income		41		62
COMPREHENSIVE INCOME (LOSS)		195		311
Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		0		0
Selling, general and administrative		1		2
Operating expenses - affiliates		0		0
Depreciation and amortization		0		0
Total operating expenses		1		2
OPERATING INCOME		(1)		(2)
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		(117)		(237)
Interest income (expense) - intercompany, net		567		1,141
Equity in net earnings (losses) of subsidiaries		(632)		(1,278)
Loss on modification and extinguishment of debt				(44)
Other (expense) income, net		0		0
Total other expense, net		(182)		(418)
INCOME (LOSS) BEFORE INCOME TAXES		(183)		(420)
Income tax expense		(33)		(71)
NET INCOME		(216)		(491)
Other comprehensive (loss) income		0		0
COMPREHENSIVE INCOME (LOSS)		(216)		(491)
Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		934		1,854
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		602		1,185
Selling, general and administrative		294		571
Operating expenses - affiliates		0		0
Depreciation and amortization		92		179
Total operating expenses		988		1,935
OPERATING INCOME		(54)		(81)
OTHER INCOME (EXPENSE)
Interest income		3		5
Interest income - affiliate		0		0
Interest expense		(1)		(2)
Interest income (expense) - intercompany, net		(868)		(1,737)
Equity in net earnings (losses) of subsidiaries		200		403
Loss on modification and extinguishment of debt				0
Other (expense) income, net		(2)		3
Total other expense, net		(668)		(1,328)
INCOME (LOSS) BEFORE INCOME TAXES		(722)		(1,409)
Income tax expense		(1)		(2)
NET INCOME		(723)		(1,411)
Other comprehensive (loss) income		0		0
COMPREHENSIVE INCOME (LOSS)		(723)		(1,411)
Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		1,174		2,331
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		479		976
Selling, general and administrative		71		156
Operating expenses - affiliates		0		0
Depreciation and amortization		215		424
Total operating expenses		765		1,556
OPERATING INCOME		409		775
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		(4)		(8)
Interest income (expense) - intercompany, net		(77)		(159)
Equity in net earnings (losses) of subsidiaries		0		0
Loss on modification and extinguishment of debt				0
Other (expense) income, net		0		(1)
Total other expense, net		(81)		(168)
INCOME (LOSS) BEFORE INCOME TAXES		328		607
Income tax expense		(37)		(71)
NET INCOME		291		536
Other comprehensive (loss) income		41		62
COMPREHENSIVE INCOME (LOSS)		332		598
Non-Affiliate Revenue
Condensed Consolidating Financial Information
Operating revenues	2,025		4,087
Non-Affiliate Revenue | Eliminations
Condensed Consolidating Financial Information
Operating revenues	(43)		(83)
Non-Affiliate Revenue | Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0		0
Non-Affiliate Revenue | Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0		0
Non-Affiliate Revenue | Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	977		1,933
Non-Affiliate Revenue | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	1,091		2,237
Non-Affiliate Revenue | Predecessor
Condensed Consolidating Financial Information
Operating revenues		2,062		4,110
Non-Affiliate Revenue | Predecessor | Eliminations
Condensed Consolidating Financial Information
Operating revenues		(46)		(75)
Non-Affiliate Revenue | Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
Non-Affiliate Revenue | Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
Non-Affiliate Revenue | Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		934		1,854
Non-Affiliate Revenue | Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		1,174		2,331
Affiliate Revenues
Condensed Consolidating Financial Information
Operating revenues	27		52
Affiliate Revenues | Eliminations
Condensed Consolidating Financial Information
Operating revenues	0		0
Affiliate Revenues | Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0		0
Affiliate Revenues | Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	0		0
Affiliate Revenues | Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	6		31
Affiliate Revenues | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues	$ 21		$ 21
Affiliate Revenues | Predecessor
Condensed Consolidating Financial Information
Operating revenues		0		0
Affiliate Revenues | Predecessor | Eliminations
Condensed Consolidating Financial Information
Operating revenues		0		0
Affiliate Revenues | Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
Affiliate Revenues | Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
Affiliate Revenues | Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		0		0
Affiliate Revenues | Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Operating revenues		$ 0		$ 0

Condensed Consolidating Finan58

Condensed Consolidating Financial Information - Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 282	$ 297
Restricted cash and securities	5	5
Assets held for sale	15	140
Accounts receivable	744	748
Accounts receivable - affiliate	4	13
Intercompany advances	0	0
Note receivable - affiliate	1,825	1,825
Other	201	117
Total current assets	3,076	3,145
Property, plant, and equipment, net	9,396	9,412
Restricted cash and securities	25	29
GOODWILL AND OTHER ASSETS
Goodwill	11,078	10,837
Investment in subsidiaries	0	0
Deferred tax assets	483	426
Other, net	108	63
Total goodwill and other assets	20,055	20,549
TOTAL ASSETS	32,552	33,135
CURRENT LIABILITIES
Current maturities of long-term debt	13	8
Accounts payable	581	695
Accounts payable - affiliate	106	41
Income and other taxes	81	100
Salaries and benefits	199	136
Interest	94	109
Current portion of deferred revenue	285	260
Intercompany payables	0	0
Other	45	57
Total current liabilities	1,404	1,406
LONG-TERM DEBT	10,857	10,882
Deferred revenue	1,138	1,099
Deferred income taxes	202	212
Other	341	264
Total deferred revenue and other liabilities	1,681	1,575
COMMITMENTS AND CONTINGENCIES (Note 9)
Total member's equity	18,610	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY	32,552	33,135
Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Customer relationships, net	7,990	8,845
Other Intangible Assets
GOODWILL AND OTHER ASSETS
Customer relationships, net	396	378
Eliminations
CURRENT ASSETS
Cash and cash equivalents	0	0
Restricted cash and securities	0	0
Assets held for sale	0	0
Accounts receivable	0	0
Accounts receivable - affiliate	(31)	(51)
Intercompany advances	(44,376)	(42,483)
Note receivable - affiliate	0	0
Other	0	0
Total current assets	(44,407)	(42,534)
Property, plant, and equipment, net	0	0
Restricted cash and securities	0	0
GOODWILL AND OTHER ASSETS
Goodwill	0	0
Investment in subsidiaries	(40,061)	(38,973)
Deferred tax assets	(1,833)	(1,771)
Other, net	0	0
Total goodwill and other assets	(41,894)	(40,744)
TOTAL ASSETS	(86,301)	(83,278)
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	0	0
Accounts payable - affiliate	(31)	(51)
Income and other taxes	0	0
Salaries and benefits	0	0
Interest	0	0
Current portion of deferred revenue	0	0
Intercompany payables	(44,376)	(42,483)
Other	0	0
Total current liabilities	(44,407)	(42,534)
LONG-TERM DEBT	0	0
Deferred revenue	0	0
Deferred income taxes	(1,833)	(1,771)
Other	0	0
Total deferred revenue and other liabilities	(1,833)	(1,771)
COMMITMENTS AND CONTINGENCIES (Note 9)
Total member's equity	(40,061)	(38,973)
TOTAL LIABILITIES AND MEMBER'S EQUITY	(86,301)	(83,278)
Eliminations | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Customer relationships, net	0	0
Eliminations | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Customer relationships, net	0	0
Level 3 Communications, Inc. | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	21	13
Restricted cash and securities	0	0
Assets held for sale	0	68
Accounts receivable	0	0
Accounts receivable - affiliate	0	0
Intercompany advances	16,727	16,251
Note receivable - affiliate	1,825	1,825
Other	0	0
Total current assets	18,573	18,157
Property, plant, and equipment, net	0	0
Restricted cash and securities	15	19
GOODWILL AND OTHER ASSETS
Goodwill	0	0
Investment in subsidiaries	16,955	16,954
Deferred tax assets	281	280
Other, net	0	0
Total goodwill and other assets	17,236	17,234
TOTAL ASSETS	35,824	35,410
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	0	0
Accounts payable - affiliate	48	11
Income and other taxes	0	0
Salaries and benefits	0	0
Interest	11	11
Current portion of deferred revenue	0	0
Intercompany payables	0	0
Other	0	16
Total current liabilities	59	38
LONG-TERM DEBT	615	616
Deferred revenue	0	0
Deferred income taxes	651	648
Other	0	1
Total deferred revenue and other liabilities	651	649
COMMITMENTS AND CONTINGENCIES (Note 9)
Total member's equity	34,499	34,107
TOTAL LIABILITIES AND MEMBER'S EQUITY	35,824	35,410
Level 3 Communications, Inc. | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Customer relationships, net	0	0
Level 3 Communications, Inc. | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Customer relationships, net	0	0
Level 3 Financing, Inc. | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	0	0
Restricted cash and securities	0	0
Assets held for sale	0	0
Accounts receivable	0	0
Accounts receivable - affiliate	0	0
Intercompany advances	23,346	21,032
Note receivable - affiliate	0	0
Other	3	0
Total current assets	23,349	21,032
Property, plant, and equipment, net	0	0
Restricted cash and securities	0	0
GOODWILL AND OTHER ASSETS
Goodwill	0	0
Investment in subsidiaries	19,501	18,403
Deferred tax assets	1,868	1,795
Other, net	3	0
Total goodwill and other assets	21,372	20,198
TOTAL ASSETS	44,721	41,230
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	1	1
Accounts payable - affiliate	0	0
Income and other taxes	0	0
Salaries and benefits	0	0
Interest	77	91
Current portion of deferred revenue	0	0
Intercompany payables	0	0
Other	0	0
Total current liabilities	78	92
LONG-TERM DEBT	10,082	10,096
Deferred revenue	0	0
Deferred income taxes	14	0
Other	0	1
Total deferred revenue and other liabilities	14	1
COMMITMENTS AND CONTINGENCIES (Note 9)
Total member's equity	34,547	31,041
TOTAL LIABILITIES AND MEMBER'S EQUITY	44,721	41,230
Level 3 Financing, Inc. | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Customer relationships, net	0	0
Level 3 Financing, Inc. | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Customer relationships, net	0	0
Level 3 Communications, LLC | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	180	175
Restricted cash and securities	2	1
Assets held for sale	1	5
Accounts receivable	65	26
Accounts receivable - affiliate	4	60
Intercompany advances	0	0
Note receivable - affiliate	0	0
Other	101	54
Total current assets	353	321
Property, plant, and equipment, net	3,147	3,237
Restricted cash and securities	10	10
GOODWILL AND OTHER ASSETS
Goodwill	9,423	1,200
Investment in subsidiaries	3,605	3,616
Deferred tax assets	167	0
Other, net	62	32
Total goodwill and other assets	17,550	9,550
TOTAL ASSETS	21,060	13,118
CURRENT LIABILITIES
Current maturities of long-term debt	2	2
Accounts payable	285	323
Accounts payable - affiliate	89	0
Income and other taxes	43	55
Salaries and benefits	162	109
Interest	0	0
Current portion of deferred revenue	153	129
Intercompany payables	44,376	42,483
Other	26	23
Total current liabilities	45,136	43,124
LONG-TERM DEBT	13	13
Deferred revenue	931	846
Deferred income taxes	839	870
Other	163	98
Total deferred revenue and other liabilities	1,933	1,814
COMMITMENTS AND CONTINGENCIES (Note 9)
Total member's equity	(26,022)	(31,833)
TOTAL LIABILITIES AND MEMBER'S EQUITY	21,060	13,118
Level 3 Communications, LLC | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Customer relationships, net	3,897	4,324
Level 3 Communications, LLC | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Customer relationships, net	396	378
Other Non-Guarantor Subsidiaries | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	81	109
Restricted cash and securities	3	4
Assets held for sale	14	67
Accounts receivable	679	722
Accounts receivable - affiliate	31	4
Intercompany advances	4,303	5,200
Note receivable - affiliate	0	0
Other	97	63
Total current assets	5,208	6,169
Property, plant, and equipment, net	6,249	6,175
Restricted cash and securities	0	0
GOODWILL AND OTHER ASSETS
Goodwill	1,655	9,637
Investment in subsidiaries	0	0
Deferred tax assets	0	122
Other, net	43	31
Total goodwill and other assets	5,791	14,311
TOTAL ASSETS	17,248	26,655
CURRENT LIABILITIES
Current maturities of long-term debt	11	6
Accounts payable	295	371
Accounts payable - affiliate	0	81
Income and other taxes	38	45
Salaries and benefits	37	27
Interest	6	7
Current portion of deferred revenue	132	131
Intercompany payables	0	0
Other	19	18
Total current liabilities	538	686
LONG-TERM DEBT	147	157
Deferred revenue	207	253
Deferred income taxes	531	465
Other	178	164
Total deferred revenue and other liabilities	916	882
COMMITMENTS AND CONTINGENCIES (Note 9)
Total member's equity	15,647	24,930
TOTAL LIABILITIES AND MEMBER'S EQUITY	17,248	26,655
Other Non-Guarantor Subsidiaries | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Customer relationships, net	4,093	4,521
Other Non-Guarantor Subsidiaries | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Customer relationships, net	$ 0	$ 0

Condensed Consolidating Finan59

Condensed Consolidating Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidating Financial Information
Net cash provided by operating activities	$ 1,018
INVESTING ACTIVITIES
Capital expenditures	(546)
Purchase of marketable securities	0
Proceeds from sale of property, plant and equipment and other assets	119
Net cash used in investing activities	(427)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt	0
Payments of long-term debt	(3)
Distributions	(605)
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	(608)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	(2)
Net decrease in cash, cash equivalents and restricted cash and securities	(19)
Cash, cash equivalents and restricted cash and securities at beginning of period	331
Cash, cash equivalents and restricted cash and securities at end of period	312
Eliminations
Condensed Consolidating Financial Information
Net cash provided by operating activities	0
INVESTING ACTIVITIES
Capital expenditures	0
Proceeds from sale of property, plant and equipment and other assets	0
Net cash used in investing activities	0
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net decrease in cash, cash equivalents and restricted cash and securities	0
Cash, cash equivalents and restricted cash and securities at beginning of period	0
Cash, cash equivalents and restricted cash and securities at end of period	0
Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	(85)
INVESTING ACTIVITIES
Capital expenditures	0
Proceeds from sale of property, plant and equipment and other assets	68
Net cash used in investing activities	68
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	(605)
Increase (decrease) due from/to affiliates, net	605
Net cash used in financing activities	0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net decrease in cash, cash equivalents and restricted cash and securities	(17)
Cash, cash equivalents and restricted cash and securities at beginning of period	32
Cash, cash equivalents and restricted cash and securities at end of period	15
Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	0
INVESTING ACTIVITIES
Capital expenditures	0
Proceeds from sale of property, plant and equipment and other assets	0
Net cash used in investing activities	0
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net decrease in cash, cash equivalents and restricted cash and securities	0
Cash, cash equivalents and restricted cash and securities at beginning of period	0
Cash, cash equivalents and restricted cash and securities at end of period	0
Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	899
INVESTING ACTIVITIES
Capital expenditures	(289)
Proceeds from sale of property, plant and equipment and other assets	0
Net cash used in investing activities	(289)
Cash Flows from Financing Activities:
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	(605)
Net cash used in financing activities	(605)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net decrease in cash, cash equivalents and restricted cash and securities	5
Cash, cash equivalents and restricted cash and securities at beginning of period	186
Cash, cash equivalents and restricted cash and securities at end of period	191
Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	204
INVESTING ACTIVITIES
Capital expenditures	(257)
Proceeds from sale of property, plant and equipment and other assets	51
Net cash used in investing activities	(206)
Cash Flows from Financing Activities:
Payments of long-term debt	(3)
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	(3)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	(2)
Net decrease in cash, cash equivalents and restricted cash and securities	(7)
Cash, cash equivalents and restricted cash and securities at beginning of period	113
Cash, cash equivalents and restricted cash and securities at end of period	$ 106
Predecessor
Condensed Consolidating Financial Information
Net cash provided by operating activities		$ 1,100
INVESTING ACTIVITIES
Capital expenditures		(696)
Purchase of marketable securities		(1,127)
Proceeds from sale of property, plant and equipment and other assets		0
Net cash used in investing activities		(1,823)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,615)
Distributions		0
Increase (decrease) due from/to affiliates, net		0
Net cash used in financing activities		(46)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		2
Net decrease in cash, cash equivalents and restricted cash and securities		(767)
Cash, cash equivalents and restricted cash and securities at beginning of period		1,857
Cash, cash equivalents and restricted cash and securities at end of period		1,090
Predecessor | Eliminations
Condensed Consolidating Financial Information
Net cash provided by operating activities		0
INVESTING ACTIVITIES
Capital expenditures		0
Purchase of marketable securities		0
Net cash used in investing activities		0
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		0
Increase (decrease) due from/to affiliates, net		0
Net cash used in financing activities		0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net decrease in cash, cash equivalents and restricted cash and securities		0
Cash, cash equivalents and restricted cash and securities at beginning of period		0
Cash, cash equivalents and restricted cash and securities at end of period		0
Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		(14)
INVESTING ACTIVITIES
Capital expenditures		0
Purchase of marketable securities		0
Net cash used in investing activities		0
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		0
Increase (decrease) due from/to affiliates, net		10
Net cash used in financing activities		10
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net decrease in cash, cash equivalents and restricted cash and securities		(4)
Cash, cash equivalents and restricted cash and securities at beginning of period		37
Cash, cash equivalents and restricted cash and securities at end of period		33
Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		(267)
INVESTING ACTIVITIES
Capital expenditures		0
Purchase of marketable securities		0
Net cash used in investing activities		0
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,611)
Increase (decrease) due from/to affiliates, net		309
Net cash used in financing activities		267
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net decrease in cash, cash equivalents and restricted cash and securities		0
Cash, cash equivalents and restricted cash and securities at beginning of period		0
Cash, cash equivalents and restricted cash and securities at end of period		0
Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		352
INVESTING ACTIVITIES
Capital expenditures		(427)
Purchase of marketable securities		(1,127)
Net cash used in investing activities		(1,554)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		(1)
Increase (decrease) due from/to affiliates, net		442
Net cash used in financing activities		441
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net decrease in cash, cash equivalents and restricted cash and securities		(761)
Cash, cash equivalents and restricted cash and securities at beginning of period		1,710
Cash, cash equivalents and restricted cash and securities at end of period		949
Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		1,029
INVESTING ACTIVITIES
Capital expenditures		(269)
Purchase of marketable securities		0
Net cash used in investing activities		(269)
Cash Flows from Financing Activities:
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		(3)
Increase (decrease) due from/to affiliates, net		(761)
Net cash used in financing activities		(764)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		2
Net decrease in cash, cash equivalents and restricted cash and securities		(2)
Cash, cash equivalents and restricted cash and securities at beginning of period		110
Cash, cash equivalents and restricted cash and securities at end of period		$ 108