Level 3 Parent (LVLT) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2018	Nov. 08, 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	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
OPERATING REVENUES
Operating revenues	$ 2,010		$ 6,149
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	976		2,954
Selling, general and administrative	311		1,043
Operating expenses - affiliates	65		173
Depreciation and amortization	431		1,295
Total operating expenses	1,783		5,465
OPERATING INCOME	227		684
OTHER INCOME (EXPENSE)
Interest income	(1)		0
Interest income - affiliate	18		50
Interest expense	(137)		(381)
Loss on modification and extinguishment of debt	0		0
Other income, net	19		21
Total other expense, net	(101)		(310)
INCOME BEFORE INCOME TAX EXPENSE	126		374
Income tax expense	(38)		(184)
NET INCOME	88		190
Predecessor
OPERATING REVENUES
Operating revenues		$ 2,059		$ 6,169
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		1,046		3,132
Selling, general and administrative		354		1,085
Operating expenses - affiliates		0		0
Depreciation and amortization		310		913
Total operating expenses		1,710		5,130
OPERATING INCOME		349		1,039
OTHER INCOME (EXPENSE)
Interest income		6		11
Interest income - affiliate		0		0
Interest expense		(134)		(399)
Loss on modification and extinguishment of debt		0		(44)
Other income, net		12		14
Total other expense, net		(116)		(418)
INCOME BEFORE INCOME TAX EXPENSE		233		621
Income tax expense		(76)		(215)
NET INCOME		157		406
Non-Affiliate Revenue
OPERATING REVENUES
Operating revenues	1,984		6,071
Non-Affiliate Revenue | Predecessor
OPERATING REVENUES
Operating revenues		2,059		6,169
Affiliate Revenues
OPERATING REVENUES
Operating revenues	$ 26		$ 78
Affiliate Revenues | Predecessor
OPERATING REVENUES
Operating revenues		$ 0		$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
NET INCOME	$ 88		$ 190
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments, net of ($1), $29, ($18) and ($55) tax	(1)		(164)
Other comprehensive (loss) income, net of tax	(1)		(164)
COMPREHENSIVE INCOME	$ 87		$ 26
Predecessor
NET INCOME		$ 157		$ 406
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments, net of ($1), $29, ($18) and ($55) tax		44		106
Other comprehensive (loss) income, net of tax		44		106
COMPREHENSIVE INCOME		$ 201		$ 512

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Foreign currency translation adjustments, tax effect	$ (1)		$ 29
Predecessor
Foreign currency translation adjustments, tax effect		$ (18)		$ (55)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 188	$ 297
Restricted cash and securities	3	5
Assets held for sale	15	140
Accounts receivable, less allowance of $10 and $3	715	748
Accounts receivable - affiliate	0	13
Note receivable - affiliate	1,825	1,825
Other	290	117
Total current assets	3,036	3,145
Property, plant and equipment, net of accumulated depreciation of $798 and $143	9,274	9,412
Restricted cash and securities	25	29
GOODWILL AND OTHER ASSETS
Goodwill	11,132	10,837
Deferred tax assets	463	426
Other, net	132	63
Total goodwill and other assets	19,929	20,549
TOTAL ASSETS	32,264	33,135
CURRENT LIABILITIES
Current maturities of long-term debt	6	8
Accounts payable	619	695
Accounts payable - affiliate	88	41
Accrued expenses and other liabilities
Income and other taxes	114	100
Salaries and benefits	233	136
Interest	96	109
Current portion of deferred revenue	288	260
Other	72	57
Total current liabilities	1,516	1,406
LONG-TERM DEBT	10,848	10,882
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	1,181	1,099
Deferred income taxes	189	212
Other	358	264
Total deferred revenue and other liabilities	1,728	1,575
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY
Member's equity	18,312	19,254
Accumulated other comprehensive (loss) income	(140)	18
Total member's equity	18,172	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY	32,264	33,135
Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	7,801	8,845
Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	$ 401	$ 378

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 10	$ 3
Accumulated depreciation	$ 798	$ 143

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
OPERATING ACTIVITIES
NET INCOME	$ 190
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,295
Deferred income taxes	175
Share-based compensation	82
Loss on modification and extinguishment of debt	0
Net long-term debt issuance costs and premium amortization	(23)
Accrued interest on long-term debt, net	(13)
Loss on sale of property, plant and equipment and other assets	1
Other, net	(41)
Changes in current assets and liabilities:
Accounts receivable	51
Accounts payable	(64)
Deferred revenue	37
Other assets and liabilities, net	(118)
Other assets and liabilities, affiliate	(55)
Net cash provided by operating activities	1,627
INVESTING ACTIVITIES
Capital expenditures	(726)
Proceeds from sale of property, plant and equipment and other assets	119
Purchase of marketable securities	0
Maturity of marketable securities	0
Net cash used in investing activities	(607)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	0
Payments of long-term debt	(5)
Distributions	(1,130)
Net cash used in financing activities	(1,135)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(115)
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	216
Supplemental cash flow information
Interest paid	404
Income taxes paid, net	$ 24
Predecessor
OPERATING ACTIVITIES
NET INCOME		$ 406
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		913
Deferred income taxes		189
Share-based compensation		120
Loss on modification and extinguishment of debt		44
Net long-term debt issuance costs and premium amortization		13
Accrued interest on long-term debt, net		(34)
Loss on sale of property, plant and equipment and other assets		6
Other, net		75
Changes in current assets and liabilities:
Accounts receivable		(34)
Accounts payable		(10)
Deferred revenue		134
Other assets and liabilities, net		(31)
Other assets and liabilities, affiliate		0
Net cash provided by operating activities		1,791
INVESTING ACTIVITIES
Capital expenditures		(1,018)
Proceeds from sale of property, plant and equipment and other assets		1
Purchase of marketable securities		(1,127)
Maturity of marketable securities		1,127
Net cash used in investing activities		(1,017)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,917)
Distributions		0
Net cash used in financing activities		(348)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		3
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		429
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		2,286
Supplemental cash flow information
Interest paid		412
Income taxes paid, net		$ 47

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
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				(387)		0
MEMBER'S EQUITY
Net income | Predecessor					$ 406
Balance at end of period (Predecessor) at Jun. 30, 2017				(325)		0
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)
Balance at end of period (Predecessor) at Jun. 30, 2017		4	19,887		(8,251)
Balance at beginning of period (Predecessor) at Dec. 31, 2016				(387)		0
MEMBER'S EQUITY
Net income | Predecessor	$ 406					0
Other comprehensive (loss) income | Predecessor	106			106
Purchase price accounting adjustments | Predecessor						0
Distributions to CenturyLink | Predecessor						0
Balance at end of period (Predecessor) at Sep. 30, 2017				(281)		0
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			27
Share-based compensation | Predecessor			94
Balance at end of period (Predecessor) at Sep. 30, 2017	11,550	4	19,921		(8,094)
Balance at end of period at Sep. 30, 2017				(281)
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 Jun. 30, 2017				(325)		0
MEMBER'S EQUITY
Net income | Predecessor	157				157	0
Other comprehensive (loss) income | Predecessor	44			44
Purchase price accounting adjustments | Predecessor						0
Distributions to CenturyLink | Predecessor						0
Balance at end of period (Predecessor) at Sep. 30, 2017				(281)		0
Balance at beginning of period (Predecessor) at Jun. 30, 2017		4	19,887		(8,251)
STOCKHOLDERS' EQUITY
Common stock issued under employee stock benefit plans and other | Predecessor			8
Share-based compensation | Predecessor			26
Balance at end of period (Predecessor) at Sep. 30, 2017	11,550	4	19,921		(8,094)
Balance at end of period at Sep. 30, 2017				(281)
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				18		19,254
MEMBER'S EQUITY
Net income	190				0	190
Other comprehensive (loss) income	(164)			(164)
Purchase price accounting adjustments						(5)
Distributions to CenturyLink						(1,130)
Balance at end of period at Sep. 30, 2018				(140)		18,312
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 Sep. 30, 2018	18,172	0	0	(140)	0
MEMBER'S EQUITY
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2014-09						0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02				0		0
Balance at beginning of period at Jun. 30, 2018				(139)		18,749
MEMBER'S EQUITY
Net income	88				0	88
Other comprehensive (loss) income	(1)			(1)
Purchase price accounting adjustments						0
Distributions to CenturyLink						(525)
Balance at end of period at Sep. 30, 2018				(140)		$ 18,312
Balance at beginning of period at Jun. 30, 2018		0	0		0
STOCKHOLDERS' EQUITY
Common stock issued under employee stock benefit plans and other			0
Share-based compensation			0
Balance at end of period at Sep. 30, 2018	$ 18,172	$ 0	$ 0	$ (140)	$ 0

Consolidated Statements of Me_2

Consolidated Statements of Member's/Stockholders' Equity Consolidated Statements of Member's/Stockholders' Equity (Parenthetical) $ in Millions	Dec. 31, 2017USD ($)
Member Units | Accounting Standards Update 2014-09
Cumulative effect of new accounting, tax	$ 3

Background

Background	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Background	(1) Background General We are an international facilities-based communications company engaged in providing a broad array of integrated communication 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 Our consolidated balance sheet as of December 31, 2017 , which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission ("SEC"); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. We believe that these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations and cash flows for the first nine months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017 . 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. The factors that led to our conclusions at the end of the third quarter of 2015 continued to exist through the third 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 $70 million from depreciation and amortization to cost of services and products for the predecessor nine months ended September 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 September 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 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. Guidance issued by these bodies to date does not allow us to definitively calculate the tax effects of the Act. 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 remeasurement 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 fourth quarter 2018 statement 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 and the Base-Erosion Anti-Abuse Tax. 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 $195 million in our consolidated statement of operations for the year ended December 31, 2017. During the first nine months of 2018, we increased the tax expense from tax reform by $83 million due to changes in certain purchase accounting adjustments related to CenturyLink’s acquisition of us. During the third 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. Based on current circumstances, we do not expect to experience a material near term reduction in the amount of cash income taxes paid by us from the Act due to utilization of net operating loss carryforwards. 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 of 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 In May 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 (or 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 costs for our customers have average amortization periods of approximately 30 months . These deferred costs are monitored every period to reflect any significant change in assumptions. 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 Act (or portion thereof) is recorded. If an entity elects to reclassify the income tax effects of the 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 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 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 ASU 2016-16, 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 In February 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. 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 transition approach includes a number of optional practical expedients that we may elect to apply. In January 2018, the FASB issued ASU 2018-01, “ Leases: Land Easement Practical Expedient for Transition to ASU 2016-02" . ASU 2018-01 permits 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. In July 2018, the FASB issued ASU 2018-11, " Leases: Targeted Improvements " ("ASU 2018-11"). 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 ASU 2018-11's newly permitted adoption method. We are in the process of implementing a new lease administration and accounting system. We plan to adopt ASU 2016-02 and ASU 2018-01 effective January 1, 2019. The adoption of ASU 2016-02 and ASU 2018-01 will result in our recognition of right of use assets and lease liabilities that we have not previously 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 and ASU 2018-01, we do expect that it will have a material impact on our consolidated financial statements.

CenturyLink Merger

CenturyLink Merger	9 Months Ended
	Sep. 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. Our results of operations have been included in the consolidated results of operations of CenturyLink since November 1, 2017. As of September 30, 2018 , the preliminary estimated amount of aggregate consideration was $19.6 billion . The U.S. Department of Justice approved the acquisition subject to conditions of a consent decree on October 2, 2017, which required 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. 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 continued to be classified as assets held for sale on our consolidated balance sheet as of September 30, 2018 . In October 2018, we sold the Tucson, Arizona assets for its net book value. 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 is 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 along with the related allocation to goodwill. CenturyLink expects to complete its final fair value determinations during the fourth quarter of 2018. CenturyLink is also reviewing its calculations of the estimates of the fair value of Level 3’s deferred tax assets acquired and liabilities assumed and performing related final controls. CenturyLink’s final fair value determinations may be different than those reflected in our consolidated financial statements at September 30, 2018 , however we do not expect that any subsequent modifications to the preliminary purchase price allocation will be material. 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 September 30, 2018 , the aggregate consideration exceeds the aggregate estimated fair value of the acquired assets and assumed liabilities by $11.2 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 September 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 September 30, 2018 (Dollars in millions) Cash, accounts receivable and other current assets (1) $ 3,317 (25 ) 3,292 Property, plant and equipment 9,311 86 9,397 Identifiable intangible assets (2) Customer relationships 8,964 (476 ) 8,488 Other 391 (13 ) 378 Other noncurrent assets 782 203 985 Current liabilities, excluding current maturities of long-term debt (1,461 ) (31 ) (1,492 ) Current maturities of long-term debt (7 ) — (7 ) Long-term debt (10,888 ) — (10,888 ) Deferred revenue and other liabilities (1,613 ) (102 ) (1,715 ) Goodwill 10,837 353 11,190 Total estimated aggregate consideration $ 19,633 (5 ) 19,628 (1) Includes accounts receivable, which had a gross contractual value of $884 million on November 1, 2017 and September 30, 2018. (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 nine months ended September 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 September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in millions) Transaction-related expenses $ — — 7 12 Integration-related expenses 16 94 24 62 Total acquisition-related expenses $ 16 94 31 74

Goodwill, Customer Relationship

Goodwill, Customer Relationships and Other Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and 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: September 30, 2018 December 31, 2017 (Dollars in millions) Goodwill $ 11,132 10,837 Customer relationships, less accumulated amortization of $659 and $126 $ 7,801 8,845 Other intangible assets subject to amortization: Trade names, less accumulated amortization of $24 and $4 106 126 Developed technology, less accumulated amortization of $51 and $9 295 252 Total other intangible assets, net $ 401 378 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 nine months ended September 30, 2018 was $204 million and $595 million , respectively, and the predecessor three and nine months ended September 30, 2017 was $49 million and $153 million , respectively. As of the successor date of September 30, 2018 , the gross carrying amount of goodwill, customer relationships, indefinite-life and other intangible assets was $20.1 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 three months) $ 202 2019 805 2020 805 2021 805 2022 794 The following table shows the rollforward of goodwill from December 31, 2017 through September 30, 2018: (Dollars in millions) As of December 31, 2017 $ 10,837 Purchase accounting and other adjustments 353 Effect of foreign currency rate change (58 ) As of September 30, 2018 $ 11,132

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 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, VPN, Ethernet, data, broadband, private line (including special access), network access, Ethernet, transport, voice, 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 not 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. 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. In most cases, termination fees or other fees on existing contracts that are negotiated in conjunction with new contracts are deferred and recognized over the new contract term. A performance obligation is a promise in a contract with a customer to provide a good or service to the customer. We recognize revenue for services when we satisfy our performance obligation. 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 has not been significant to our results in 2018. 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 as ASC 606 revenue which we recognize ratably over the term of the agreement. Cash consideration received on transfers of dark fiber is accounted for as non-ASC 606 lease revenue, which we also recognize ratably over the term of the agreement. We do not recognize revenue on any contemporaneous exchanges of our optical capacity assets for other non-owned 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 corresponding 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 September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in millions) Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Operating revenues $ 2,010 (4 ) 2,006 6,149 (4 ) 6,145 Cost of services and products (exclusive of depreciation and amortization) 976 — 976 2,954 — 2,954 Selling, general and administrative 311 12 323 1,043 32 1,075 Interest expense 137 (7 ) 130 381 (7 ) 374 Income tax expense 38 (2 ) 36 184 (8 ) 176 Net income 88 (7 ) 81 190 (21 ) 169 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: September 30, 2018 (Dollars in millions) Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Other current assets $ 290 (22 ) 268 Other long-term assets, net 132 (22 ) 110 Deferred revenue 1,469 (3 ) 1,466 Deferred income tax assets, net 274 10 284 Member's equity 18,312 (31 ) 18,281 Disaggregated Revenue by Service Offering The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and nine months ended September 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 September 30, 2018 Nine Months Ended September 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 (1) $ 969 — 969 2,959 — 2,959 Transport & Infrastructure (2) 664 (45 ) 619 2,012 (140 ) 1,872 Voice & Collaboration (3) 349 — 349 1,093 — 1,093 IT and Managed Services (4) 1 — 1 3 — 3 Other revenues (5) 1 (1 ) — 4 (3 ) 1 Affiliate revenues (6) 26 (26 ) — 78 (78 ) — Total revenues $ 2,010 (72 ) 1,938 6,149 (221 ) 5,928 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,938 5,928 Total revenue from contracts with customers $ 1,938 $ 5,928 (1) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (2) Includes primarily broadband and equipment sales and professional services revenues. (3) Includes local, long-distance and other ancillary revenues. (4) Includes IT services and managed services 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 September 30, 2018 and January 1, 2018: Successor September 30, 2018 January 1, 2018 (Dollars in millions) Customer receivables (1) $ 715 748 Contract liabilities 413 353 (1) Gross customer receivables of $725 and $751 , net of allowance for doubtful accounts of $10 and $3 , at September 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 recognizing 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 nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 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) $ 22 135 Performance obligations satisfied in previous periods — — Performance Obligations As of September 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 $6.3 billion . We expect to recognize approximately 67% of this revenue through 2020, 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 nine months ended September 30, 2018 : Successor Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in millions) Acquisition Costs Fulfillment Costs Acquisition Costs Fulfillment Costs Beginning of period balance $ 34 52 13 14 Costs incurred 16 22 42 70 Amortization (5 ) (8 ) (10 ) (18 ) End of period balance $ 45 66 45 66 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 on a straight-line basis to which the assets relate 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 amounts 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. (7) Products and Services Revenues We categorize our products, services and revenues among the following six categories: • IP and data services , which include primarily VPN data networks, Ethernet, IP, video (including our facilities-based video services, CDN services and Vyvx broadcast services) and other ancillary services; • Transport and infrastructure , which include broadband, private line (including business data services), data center facilities and services, including cloud, hosting and application management solutions, wavelength, equipment sales and professional services, network security services, dark fiber 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 September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in millions) IP and data services $ 969 2,959 988 2,947 Transport and infrastructure 664 2,012 677 2,042 Voice and collaboration 349 1,093 392 1,174 IT and managed services 1 3 — — Other 1 4 2 6 Affiliate 26 78 — — Total revenues $ 2,010 6,149 2,059 6,169 We recognize revenues in our consolidated statements of operations for certain USF surcharges and transaction taxes that we bill to our customers. Our consolidated statements of operations also reflect the offsetting expense for the amounts we remit to the government agencies. The total amount of such surcharges and transaction taxes that we included in revenues aggregated $96 million and $97 million for the successor three months ended September 30, 2018 and the predecessor three months ended September 30, 2017 , respectively, and $301 million and $295 million for the successor nine months ended September 30, 2018 and the predecessor nine months ended September 30, 2017 , respectively. These USF surcharges, where we record revenue and transaction taxes, are assigned to the products and services categories based on the underlying revenues. We also act as a collection agent for certain other USF and transaction taxes that we are required by government agencies to bill our customers, for which we do not record any revenue or expense because we only act as a pass-through agent.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Long-term Debt	(5) Long-Term Debt The following table summarizes our long-term debt: Interest Rates Maturities September 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 165 179 Total long-term debt, excluding unamortized premiums 10,691 10,705 Unamortized premiums, net 163 185 Total long-term debt 10,854 10,890 Less current maturities (6 ) (8 ) Long-term debt, excluding current maturities $ 10,848 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 4.432% as of September 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 three months) $ 2 2019 6 2020 6 2021 647 2022 1,609 2023 and thereafter 8,421 Total long-term debt $ 10,691 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. Compliance At September 30, 2018 , we were in compliance with the provisions and financial covenants contained in our respective material debt agreements. Other 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	9 Months Ended
	Sep. 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 15 48 Payments, net (18 ) (5 ) Balance at September 30, 2018 $ 2 47

Products and Services Revenues

Products and Services Revenues	9 Months Ended
	Sep. 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, VPN, Ethernet, data, broadband, private line (including special access), network access, Ethernet, transport, voice, 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 not 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. 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. In most cases, termination fees or other fees on existing contracts that are negotiated in conjunction with new contracts are deferred and recognized over the new contract term. A performance obligation is a promise in a contract with a customer to provide a good or service to the customer. We recognize revenue for services when we satisfy our performance obligation. 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 has not been significant to our results in 2018. 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 as ASC 606 revenue which we recognize ratably over the term of the agreement. Cash consideration received on transfers of dark fiber is accounted for as non-ASC 606 lease revenue, which we also recognize ratably over the term of the agreement. We do not recognize revenue on any contemporaneous exchanges of our optical capacity assets for other non-owned 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 corresponding 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 September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in millions) Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Operating revenues $ 2,010 (4 ) 2,006 6,149 (4 ) 6,145 Cost of services and products (exclusive of depreciation and amortization) 976 — 976 2,954 — 2,954 Selling, general and administrative 311 12 323 1,043 32 1,075 Interest expense 137 (7 ) 130 381 (7 ) 374 Income tax expense 38 (2 ) 36 184 (8 ) 176 Net income 88 (7 ) 81 190 (21 ) 169 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: September 30, 2018 (Dollars in millions) Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Other current assets $ 290 (22 ) 268 Other long-term assets, net 132 (22 ) 110 Deferred revenue 1,469 (3 ) 1,466 Deferred income tax assets, net 274 10 284 Member's equity 18,312 (31 ) 18,281 Disaggregated Revenue by Service Offering The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and nine months ended September 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 September 30, 2018 Nine Months Ended September 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 (1) $ 969 — 969 2,959 — 2,959 Transport & Infrastructure (2) 664 (45 ) 619 2,012 (140 ) 1,872 Voice & Collaboration (3) 349 — 349 1,093 — 1,093 IT and Managed Services (4) 1 — 1 3 — 3 Other revenues (5) 1 (1 ) — 4 (3 ) 1 Affiliate revenues (6) 26 (26 ) — 78 (78 ) — Total revenues $ 2,010 (72 ) 1,938 6,149 (221 ) 5,928 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,938 5,928 Total revenue from contracts with customers $ 1,938 $ 5,928 (1) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (2) Includes primarily broadband and equipment sales and professional services revenues. (3) Includes local, long-distance and other ancillary revenues. (4) Includes IT services and managed services 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 September 30, 2018 and January 1, 2018: Successor September 30, 2018 January 1, 2018 (Dollars in millions) Customer receivables (1) $ 715 748 Contract liabilities 413 353 (1) Gross customer receivables of $725 and $751 , net of allowance for doubtful accounts of $10 and $3 , at September 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 recognizing 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 nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 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) $ 22 135 Performance obligations satisfied in previous periods — — Performance Obligations As of September 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 $6.3 billion . We expect to recognize approximately 67% of this revenue through 2020, 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 nine months ended September 30, 2018 : Successor Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in millions) Acquisition Costs Fulfillment Costs Acquisition Costs Fulfillment Costs Beginning of period balance $ 34 52 13 14 Costs incurred 16 22 42 70 Amortization (5 ) (8 ) (10 ) (18 ) End of period balance $ 45 66 45 66 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 on a straight-line basis to which the assets relate 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 amounts 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. (7) Products and Services Revenues We categorize our products, services and revenues among the following six categories: • IP and data services , which include primarily VPN data networks, Ethernet, IP, video (including our facilities-based video services, CDN services and Vyvx broadcast services) and other ancillary services; • Transport and infrastructure , which include broadband, private line (including business data services), data center facilities and services, including cloud, hosting and application management solutions, wavelength, equipment sales and professional services, network security services, dark fiber 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 September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in millions) IP and data services $ 969 2,959 988 2,947 Transport and infrastructure 664 2,012 677 2,042 Voice and collaboration 349 1,093 392 1,174 IT and managed services 1 3 — — Other 1 4 2 6 Affiliate 26 78 — — Total revenues $ 2,010 6,149 2,059 6,169 We recognize revenues in our consolidated statements of operations for certain USF surcharges and transaction taxes that we bill to our customers. Our consolidated statements of operations also reflect the offsetting expense for the amounts we remit to the government agencies. The total amount of such surcharges and transaction taxes that we included in revenues aggregated $96 million and $97 million for the successor three months ended September 30, 2018 and the predecessor three months ended September 30, 2017 , respectively, and $301 million and $295 million for the successor nine months ended September 30, 2018 and the predecessor nine months ended September 30, 2017 , respectively. These USF surcharges, where we record revenue and transaction taxes, are assigned to the products and services categories based on the underlying revenues. We also act as a collection agent for certain other USF and transaction taxes that we are required by government agencies to bill our customers, for which we do not record any revenue or expense because we only act as a pass-through agent.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 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: September 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 $ 10,689 10,538 10,711 10,528

Commitments, Contingencies and

Commitments, Contingencies and Other Items	9 Months Ended
	Sep. 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, which 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 our litigation contingencies at September 30, 2018 aggregated to approximately $80 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, we believe the total amount of exposure is $13 million at September 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. Oral argument was held before the Supreme Court of Justice in October 2018. A decision on this case 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 September 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 $34 million at September 30, 2018 in excess of the accruals established for these matters. Qui Tam Action We were notified in late 2017 of a qui tam action pending against Level 3 Communications, Inc. 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. Several people, including two former Level 3 employees, were 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. Of the two former employees, one entered a plea agreement, and the other is deceased. 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 September 30, 2018 and December 31, 2017, we had outstanding letters of credit or other similar obligations of approximately $31 million and $36 million , respectively, of which $26 million and $30 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 individually 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 us. __________________________________________________ The matters listed above in this Note do not reflect all of our contingencies. For additional information on our contingencies, see Note 14 - Commitments, Contingencies and Other Items 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. The ultimate outcome of the above-described matters may differ materially from the outcomes anticipated, estimated, projected or implied by us in certain of our statements appearing above in this Note, and proceedings currently viewed as immaterial by us may ultimately materially impact us.

Other Financial Information

Other Financial Information	9 Months Ended
	Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Financial Information	(10) Other Financial Information Other Current Assets The following table presents details of other current assets reflected in our consolidated balance sheets: Successor September 30, 2018 December 31, 2017 (Dollars in millions) Prepaid expenses $ 146 68 Material, supplies and inventory 34 3 Deferred charges 24 17 Deferred commissions 22 — Other 64 29 Total other current assets $ 290 117

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive 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 nine months ended September 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 (164 ) (164 ) 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 (158 ) (158 ) Balance at September 30, 2018 $ (140 ) (140 ) The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the predecessor nine months ended September 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 1 106 107 Amounts reclassified from accumulated other comprehensive loss (1 ) — (1 ) Net other comprehensive income — 106 106 Balance at September 30, 2017 $ (34 ) (247 ) (281 )

Condensed Consolidating Financi

Condensed Consolidating Financial Information	9 Months Ended
	Sep. 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 September 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 $ — — 951 1,033 — 1,984 Operating revenues - affiliate — — 50 47 (71 ) 26 Total operating revenues — — 1,001 1,080 (71 ) 2,010 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 538 438 — 976 Selling, general and administrative — — 333 49 (71 ) 311 Operating expenses - affiliates — — 50 15 — 65 Depreciation and amortization — — 176 255 — 431 Total operating expenses — — 1,097 757 (71 ) 1,783 OPERATING INCOME (LOSS) — — (96 ) 323 — 227 OTHER INCOME (EXPENSE) Interest income — — — (2 ) 1 (1 ) Interest income - affiliate 16 — — 2 — 18 Interest expense (8 ) (118 ) (2 ) (8 ) (1 ) (137 ) Interest income (expense) - intercompany, net 771 234 (997 ) (8 ) — — Equity in net earnings (losses) of subsidiaries (690 ) (834 ) 452 — 1,072 — Other income, net (3 ) — (1 ) 23 — 19 Total other income (expense) 86 (718 ) (548 ) 7 1,072 (101 ) INCOME (LOSS) BEFORE INCOME TAXES 86 (718 ) (644 ) 330 1,072 126 Income tax benefit (expense) 2 28 18 (86 ) — (38 ) NET INCOME (LOSS) 88 (690 ) (626 ) 244 1,072 88 Other comprehensive income (loss), net of income taxes (1 ) — — (1 ) 1 (1 ) COMPREHENSIVE INCOME (LOSS) $ 87 (690 ) (626 ) 243 1,073 87 Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 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 $ — — 2,884 3,187 — 6,071 Operating revenues - affiliate — — 81 151 (154 ) 78 Total operating revenues — — 2,965 3,338 (154 ) 6,149 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 1,727 1,227 — 2,954 Selling, general and administrative — 3 878 234 (72 ) 1,043 Operating expenses - affiliate — — 140 115 (82 ) 173 Depreciation and amortization — — 520 775 — 1,295 Total operating expenses — 3 3,265 2,351 (154 ) 5,465 OPERATING INCOME (LOSS) — (3 ) (300 ) 987 — 684 OTHER INCOME (EXPENSE) Interest income — — 1 (1 ) — — Interest income - affiliate 48 — — 2 — 50 Interest expense (24 ) (339 ) (3 ) (15 ) — (381 ) Interest income (expense) - intercompany, net 1,474 1,446 (2,756 ) (164 ) — — Equity in net earnings (losses) of subsidiaries (1,321 ) (2,505 ) 451 — 3,375 — Other income, net (3 ) — 2 22 — 21 Total other income (expense) 174 (1,398 ) (2,305 ) (156 ) 3,375 (310 ) INCOME (LOSS) BEFORE INCOME TAXES 174 (1,401 ) (2,605 ) 831 3,375 374 Income tax benefit (expense) 16 80 (16 ) (264 ) — (184 ) NET INCOME (LOSS) 190 (1,321 ) (2,621 ) 567 3,375 190 Other comprehensive income (loss), net of income taxes (164 ) — — (164 ) 164 (164 ) COMPREHENSIVE INCOME (LOSS) $ 26 (1,321 ) (2,621 ) 403 3,539 26 Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 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 $ — — 932 1,168 (41 ) 2,059 Operating revenues - affiliate — — — — — — Total operating revenues — — 932 1,168 (41 ) 2,059 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 600 487 (41 ) 1,046 Selling, general and administrative expenses 2 1 272 79 — 354 Operating expenses - affiliate — — — — — — Depreciation and amortization — — 97 213 — 310 Total operating expenses 2 1 969 779 (41 ) 1,710 OPERATING INCOME (LOSS) (2 ) (1 ) (37 ) 389 — 349 OTHER INCOME (EXPENSE) Interest income — — 6 — — 6 Interest income - affiliate — — — — — — Interest expense (9 ) (121 ) — (4 ) — (134 ) Interest income (expense) - intercompany, net 377 562 (868 ) (71 ) — — Equity in net earnings (losses) of subsidiaries (212 ) (614 ) 215 — 611 — Other income, net — — 12 — — 12 Total other income (expense) 156 (173 ) (635 ) (75 ) 611 (116 ) INCOME (LOSS) BEFORE INCOME TAXES 154 (174 ) (672 ) 314 611 233 Income tax benefit (expense) 3 (38 ) (1 ) (40 ) — (76 ) NET INCOME (LOSS) 157 (212 ) (673 ) 274 611 157 Other comprehensive income (loss), net of income taxes 44 — — 44 (44 ) 44 COMPREHENSIVE INCOME (LOSS) $ 201 (212 ) (673 ) 318 567 201 Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 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 $ — — 2,786 3,499 (116 ) 6,169 Operating revenues - affiliate — — — — — — Total operating revenues — — 2,786 3,499 (116 ) 6,169 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 1,785 1,463 (116 ) 3,132 Selling, general and administrative expenses 4 3 843 235 — 1,085 Operating expenses - affiliate — — — — — — Depreciation and amortization — — 276 637 — 913 Total operating expenses 4 3 2,904 2,335 (116 ) 5,130 OPERATING INCOME (LOSS) (4 ) (3 ) (118 ) 1,164 — 1,039 OTHER INCOME (EXPENSE) Interest income — — 11 — — 11 Interest income - affiliate — — — — — — Interest expense (27 ) (358 ) (2 ) (12 ) — (399 ) Interest income (expense) - intercompany, net 1,132 1,703 (2,605 ) (230 ) — — Equity in net earnings (losses) of subsidiaries (703 ) (1,892 ) 618 — 1,977 — Loss on modification and extinguishment of debt — (44 ) — — — (44 ) Other income, net — — 15 (1 ) — 14 Total other income (expense) 402 (591 ) (1,963 ) (243 ) 1,977 (418 ) INCOME (LOSS) BEFORE INCOME TAXES 398 (594 ) (2,081 ) 921 1,977 621 Income tax benefit (expense) 8 (109 ) (3 ) (111 ) — (215 ) NET INCOME (LOSS) 406 (703 ) (2,084 ) 810 1,977 406 Other comprehensive income (loss), net of income taxes 106 — — 106 (106 ) 106 COMPREHENSIVE INCOME (LOSS) $ 512 (703 ) (2,084 ) 916 1,871 512 Condensed Consolidating Balance Sheets September 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 $ 36 — 73 79 — 188 Restricted cash and securities — — 1 2 — 3 Assets held for sale — — 1 14 — 15 Accounts receivable — — 24 691 — 715 Accounts receivable - affiliate — — — — — — Intercompany advances 16,935 23,527 (106 ) 10,478 (50,834 ) — Note receivable - affiliate 1,825 — — — — 1,825 Other — — 122 168 — 290 Total current assets 18,796 23,527 115 11,432 (50,834 ) 3,036 Property, plant, and equipment, net — — 3,137 6,137 — 9,274 Restricted cash and securities 15 — 10 — — 25 GOODWILL AND OTHER ASSETS Goodwill — — 9,576 1,556 — 11,132 Customer relationships, net — — 3,815 3,986 — 7,801 Other intangible assets, net — — 373 28 — 401 Investment in subsidiaries 16,265 18,667 4,057 — (38,989 ) — Deferred tax assets 283 1,902 203 (154 ) (1,771 ) 463 Other, net — — 75 57 — 132 Total goodwill and other assets 16,548 20,569 18,099 5,473 (40,760 ) 19,929 TOTAL ASSETS $ 35,359 44,096 21,361 23,042 (91,594 ) 32,264 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ — — 1 5 — 6 Accounts payable 17 57 215 330 — 619 Accounts payable - affiliate (4 ) (3 ) 93 2 — 88 Income and other taxes 17 3 59 35 — 114 Salaries and benefits — — 196 37 — 233 Interest 3 87 1 5 — 96 Current portion of deferred revenue — — 147 141 — 288 Current portion of deferred revenue, affiliate — — 45,320 5,514 (50,834 ) — Intercompany payables — — — — — — Other — 1 1 70 — 72 Total current liabilities 33 145 46,033 6,139 (50,834 ) 1,516 LONG-TERM DEBT 614 10,075 7 152 — 10,848 DEFERRED REVENUE AND OTHER LIABILITIES Deferred revenues — — 962 219 — 1,181 Deferred income taxes 651 19 837 453 (1,771 ) 189 Other — — 170 188 — 358 Total deferred revenue and other liabilities 651 19 1,969 860 (1,771 ) 1,728 COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY (DEFICIT) 34,061 33,857 (26,648 ) 15,891 (38,989 ) 18,172 TOTAL LIABILITIES AND MEMBER'S EQUITY $ 35,359 44,096 21,361 23,042 (91,594 ) 32,264 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 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 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 Nine Months Ended September 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 $ (49 ) — 1,420 256 — 1,627 INVESTING ACTIVITIES Capital expenditures — — (392 ) (334 ) — (726 ) Proceeds from the sale of property, plant and equipment and other assets 68 — — 51 — 119 Net cash provided by (used in) investing activities 68 — (392 ) (283 ) — (607 ) FINANCING ACTIVITIES Payments of long-term debt — — — (5 ) — (5 ) Distributions (1,130 ) — — — — (1,130 ) Increase (decrease) due from/to affiliates, net 1,130 — (1,130 ) — — — Net cash provided by (used in) financing activities — — (1,130 ) (5 ) — (1,135 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — — — — Net increase (decrease) in cash, cash equivalents and restricted cash and securities 19 — (102 ) (32 ) — (115 ) Cash, cash equivalents and restricted cash and securities at beginning of period 32 — 186 113 — 331 Cash, cash equivalents and restricted cash and securities at end of period $ 51 — 84 81 — 216 Condensed Consolidating Statements of Cash Flows Nine Months Ended September 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 $ (32 ) (378 ) 698 1,503 — 1,791 INVESTING ACTIVITIES Capital expenditures — — (614 ) (404 ) — (1,018 ) Purchase of marketable securities — — (1,127 ) — — (1,127 ) Maturity of marketable securities — — 1,127 — — 1,127 Proceeds from the sale of property, plant, and equipment and other assets — — 1 — — 1 Net cash provided by (used in) investing activities — — (613 ) (404 ) — (1,017 ) FINANCING ACTIVITIES Net proceeds from issuance of long-term debt — 4,569 — — — 4,569 Payments of long-term debt — (4,911 ) 1 (7 ) — (4,917 ) Increase (decrease) due from/to affiliates, net 28 720 356 (1,104 ) — — Net cash provided by (used in) financing activities 28 378 357 (1,111 ) — (348 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — 3 — 3 Net increase (decrease) in cash, cash equivalents and restricted cash and securities (4 ) — 442 (9 ) — 429 Cash, cash equivalents and restricted cash and securities at beginning of period 37 — 1,710 110 — 1,857 Cash, cash equivalents and restricted cash and securities at end of period $ 33 — 2,152 101 — 2,286

Background (Policies)

Background (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our consolidated balance sheet as of December 31, 2017 , which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission ("SEC"); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. We believe that these consolidated financial statements include all normal recurring adjustments necessary to fairly present the results for the interim periods. The consolidated results of operations and cash flows for the first nine months of the year are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017 . 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. The factors that led to our conclusions at the end of the third quarter of 2015 continued to exist through the third 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 $70 million from depreciation and amortization to cost of services and products for the predecessor nine months ended September 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	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.
New Accounting Pronouncements	Recently Adopted Accounting Pronouncements In the first quarter of 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 In May 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 (or 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 costs for our customers have average amortization periods of approximately 30 months . These deferred costs are monitored every period to reflect any significant change in assumptions. 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 Act (or portion thereof) is recorded. If an entity elects to reclassify the income tax effects of the 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 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 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 ASU 2016-16, 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 In February 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. 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 transition approach includes a number of optional practical expedients that we may elect to apply. In January 2018, the FASB issued ASU 2018-01, “ Leases: Land Easement Practical Expedient for Transition to ASU 2016-02" . ASU 2018-01 permits 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. In July 2018, the FASB issued ASU 2018-11, " Leases: Targeted Improvements " ("ASU 2018-11"). 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 ASU 2018-11's newly permitted adoption method. We are in the process of implementing a new lease administration and accounting system. We plan to adopt ASU 2016-02 and ASU 2018-01 effective January 1, 2019. The adoption of ASU 2016-02 and ASU 2018-01 will result in our recognition of right of use assets and lease liabilities that we have not previously 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 and ASU 2018-01, we do expect that it will have a material impact on our consolidated financial statements.

CenturyLink Merger (Tables)

CenturyLink Merger (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	As of September 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 September 30, 2018 (Dollars in millions) Cash, accounts receivable and other current assets (1) $ 3,317 (25 ) 3,292 Property, plant and equipment 9,311 86 9,397 Identifiable intangible assets (2) Customer relationships 8,964 (476 ) 8,488 Other 391 (13 ) 378 Other noncurrent assets 782 203 985 Current liabilities, excluding current maturities of long-term debt (1,461 ) (31 ) (1,492 ) Current maturities of long-term debt (7 ) — (7 ) Long-term debt (10,888 ) — (10,888 ) Deferred revenue and other liabilities (1,613 ) (102 ) (1,715 ) Goodwill 10,837 353 11,190 Total estimated aggregate consideration $ 19,633 (5 ) 19,628 (1) Includes accounts receivable, which had a gross contractual value of $884 million on November 1, 2017 and September 30, 2018. (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 nine months ended September 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 September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in millions) Transaction-related expenses $ — — 7 12 Integration-related expenses 16 94 24 62 Total acquisition-related expenses $ 16 94 31 74

Goodwill, Customer Relationsh_2

Goodwill, Customer Relationships and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of acquisition-related intangible assets	Goodwill, customer relationships and other intangible assets consisted of the following: September 30, 2018 December 31, 2017 (Dollars in millions) Goodwill $ 11,132 10,837 Customer relationships, less accumulated amortization of $659 and $126 $ 7,801 8,845 Other intangible assets subject to amortization: Trade names, less accumulated amortization of $24 and $4 106 126 Developed technology, less accumulated amortization of $51 and $9 295 252 Total other intangible assets, net $ 401 378
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 three months) $ 202 2019 805 2020 805 2021 805 2022 794
Schedule of Goodwill	The following table shows the rollforward of goodwill from December 31, 2017 through September 30, 2018: (Dollars in millions) As of December 31, 2017 $ 10,837 Purchase accounting and other adjustments 353 Effect of foreign currency rate change (58 ) As of September 30, 2018 $ 11,132

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in millions) Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Operating revenues $ 2,010 (4 ) 2,006 6,149 (4 ) 6,145 Cost of services and products (exclusive of depreciation and amortization) 976 — 976 2,954 — 2,954 Selling, general and administrative 311 12 323 1,043 32 1,075 Interest expense 137 (7 ) 130 381 (7 ) 374 Income tax expense 38 (2 ) 36 184 (8 ) 176 Net income 88 (7 ) 81 190 (21 ) 169 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: September 30, 2018 (Dollars in millions) Reported Balances as of September 30, 2018 Impact of ASC 606 ASC 605 Historical Adjusted Balances Other current assets $ 290 (22 ) 268 Other long-term assets, net 132 (22 ) 110 Deferred revenue 1,469 (3 ) 1,466 Deferred income tax assets, net 274 10 284 Member's equity 18,312 (31 ) 18,281
Disaggregation of Revenue	The following table provides disaggregation of revenue from contracts with customers based on service offering for the three and nine months ended September 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 September 30, 2018 Nine Months Ended September 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 (1) $ 969 — 969 2,959 — 2,959 Transport & Infrastructure (2) 664 (45 ) 619 2,012 (140 ) 1,872 Voice & Collaboration (3) 349 — 349 1,093 — 1,093 IT and Managed Services (4) 1 — 1 3 — 3 Other revenues (5) 1 (1 ) — 4 (3 ) 1 Affiliate revenues (6) 26 (26 ) — 78 (78 ) — Total revenues $ 2,010 (72 ) 1,938 6,149 (221 ) 5,928 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,938 5,928 Total revenue from contracts with customers $ 1,938 $ 5,928 (1) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (2) Includes primarily broadband and equipment sales and professional services revenues. (3) Includes local, long-distance and other ancillary revenues. (4) Includes IT services and managed services 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 September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in millions) IP and data services $ 969 2,959 988 2,947 Transport and infrastructure 664 2,012 677 2,042 Voice and collaboration 349 1,093 392 1,174 IT and managed services 1 3 — — Other 1 4 2 6 Affiliate 26 78 — — Total revenues $ 2,010 6,149 2,059 6,169
Contract with Customer, Asset and Liability	The following table provides information about revenues recognized for the three and nine months ended September 30, 2018 : Three Months Ended September 30, 2018 Nine Months Ended September 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) $ 22 135 Performance obligations satisfied in previous periods — — The following table provides balances of customer receivables and contract liabilities as of September 30, 2018 and January 1, 2018: Successor September 30, 2018 January 1, 2018 (Dollars in millions) Customer receivables (1) $ 715 748 Contract liabilities 413 353 (1) Gross customer receivables of $725 and $751 , net of allowance for doubtful accounts of $10 and $3 , at September 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 nine months ended September 30, 2018 : Successor Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (Dollars in millions) Acquisition Costs Fulfillment Costs Acquisition Costs Fulfillment Costs Beginning of period balance $ 34 52 13 14 Costs incurred 16 22 42 70 Amortization (5 ) (8 ) (10 ) (18 ) End of period balance $ 45 66 45 66

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of long-term debt	The following table summarizes our long-term debt: Interest Rates Maturities September 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 165 179 Total long-term debt, excluding unamortized premiums 10,691 10,705 Unamortized premiums, net 163 185 Total long-term debt 10,854 10,890 Less current maturities (6 ) (8 ) Long-term debt, excluding current maturities $ 10,848 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 4.432% as of September 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 three months) $ 2 2019 6 2020 6 2021 647 2022 1,609 2023 and thereafter 8,421 Total long-term debt $ 10,691

Severance and Restructuring C_2

Severance and Restructuring Costs (Tables)	9 Months Ended
	Sep. 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 15 48 Payments, net (18 ) (5 ) Balance at September 30, 2018 $ 2 47

Products and Services Revenues

Products and Services Revenues (Tables)	9 Months Ended
	Sep. 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 nine months ended September 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 September 30, 2018 Nine Months Ended September 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 (1) $ 969 — 969 2,959 — 2,959 Transport & Infrastructure (2) 664 (45 ) 619 2,012 (140 ) 1,872 Voice & Collaboration (3) 349 — 349 1,093 — 1,093 IT and Managed Services (4) 1 — 1 3 — 3 Other revenues (5) 1 (1 ) — 4 (3 ) 1 Affiliate revenues (6) 26 (26 ) — 78 (78 ) — Total revenues $ 2,010 (72 ) 1,938 6,149 (221 ) 5,928 Timing of revenue Goods transferred at a point in time $ — $ — Services performed over time 1,938 5,928 Total revenue from contracts with customers $ 1,938 $ 5,928 (1) Includes primarily VPN data network, Ethernet, IP, video and ancillary revenues. (2) Includes primarily broadband and equipment sales and professional services revenues. (3) Includes local, long-distance and other ancillary revenues. (4) Includes IT services and managed services 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 September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (Dollars in millions) IP and data services $ 969 2,959 988 2,947 Transport and infrastructure 664 2,012 677 2,042 Voice and collaboration 349 1,093 392 1,174 IT and managed services 1 3 — — Other 1 4 2 6 Affiliate 26 78 — — Total revenues $ 2,010 6,149 2,059 6,169

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 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: September 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 $ 10,689 10,538 10,711 10,528

Other Financial Information (Ta

Other Financial Information (Tables)	9 Months Ended
	Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	The following table presents details of other current assets reflected in our consolidated balance sheets: Successor September 30, 2018 December 31, 2017 (Dollars in millions) Prepaid expenses $ 146 68 Material, supplies and inventory 34 3 Deferred charges 24 17 Deferred commissions 22 — Other 64 29 Total other current assets $ 290 117

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 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 nine months ended September 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 (164 ) (164 ) 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 (158 ) (158 ) Balance at September 30, 2018 $ (140 ) (140 ) The table below summarizes changes in accumulated other comprehensive loss recorded on our consolidated balance sheets by component for the predecessor nine months ended September 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 1 106 107 Amounts reclassified from accumulated other comprehensive loss (1 ) — (1 ) Net other comprehensive income — 106 106 Balance at September 30, 2017 $ (34 ) (247 ) (281 )

Condensed Consolidating Finan_2

Condensed Consolidating Financial Information (Tables)	9 Months Ended
	Sep. 30, 2018
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Statements of Comprehensive Income (Loss)	Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 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 $ — — 951 1,033 — 1,984 Operating revenues - affiliate — — 50 47 (71 ) 26 Total operating revenues — — 1,001 1,080 (71 ) 2,010 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 538 438 — 976 Selling, general and administrative — — 333 49 (71 ) 311 Operating expenses - affiliates — — 50 15 — 65 Depreciation and amortization — — 176 255 — 431 Total operating expenses — — 1,097 757 (71 ) 1,783 OPERATING INCOME (LOSS) — — (96 ) 323 — 227 OTHER INCOME (EXPENSE) Interest income — — — (2 ) 1 (1 ) Interest income - affiliate 16 — — 2 — 18 Interest expense (8 ) (118 ) (2 ) (8 ) (1 ) (137 ) Interest income (expense) - intercompany, net 771 234 (997 ) (8 ) — — Equity in net earnings (losses) of subsidiaries (690 ) (834 ) 452 — 1,072 — Other income, net (3 ) — (1 ) 23 — 19 Total other income (expense) 86 (718 ) (548 ) 7 1,072 (101 ) INCOME (LOSS) BEFORE INCOME TAXES 86 (718 ) (644 ) 330 1,072 126 Income tax benefit (expense) 2 28 18 (86 ) — (38 ) NET INCOME (LOSS) 88 (690 ) (626 ) 244 1,072 88 Other comprehensive income (loss), net of income taxes (1 ) — — (1 ) 1 (1 ) COMPREHENSIVE INCOME (LOSS) $ 87 (690 ) (626 ) 243 1,073 87 Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 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 $ — — 2,884 3,187 — 6,071 Operating revenues - affiliate — — 81 151 (154 ) 78 Total operating revenues — — 2,965 3,338 (154 ) 6,149 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 1,727 1,227 — 2,954 Selling, general and administrative — 3 878 234 (72 ) 1,043 Operating expenses - affiliate — — 140 115 (82 ) 173 Depreciation and amortization — — 520 775 — 1,295 Total operating expenses — 3 3,265 2,351 (154 ) 5,465 OPERATING INCOME (LOSS) — (3 ) (300 ) 987 — 684 OTHER INCOME (EXPENSE) Interest income — — 1 (1 ) — — Interest income - affiliate 48 — — 2 — 50 Interest expense (24 ) (339 ) (3 ) (15 ) — (381 ) Interest income (expense) - intercompany, net 1,474 1,446 (2,756 ) (164 ) — — Equity in net earnings (losses) of subsidiaries (1,321 ) (2,505 ) 451 — 3,375 — Other income, net (3 ) — 2 22 — 21 Total other income (expense) 174 (1,398 ) (2,305 ) (156 ) 3,375 (310 ) INCOME (LOSS) BEFORE INCOME TAXES 174 (1,401 ) (2,605 ) 831 3,375 374 Income tax benefit (expense) 16 80 (16 ) (264 ) — (184 ) NET INCOME (LOSS) 190 (1,321 ) (2,621 ) 567 3,375 190 Other comprehensive income (loss), net of income taxes (164 ) — — (164 ) 164 (164 ) COMPREHENSIVE INCOME (LOSS) $ 26 (1,321 ) (2,621 ) 403 3,539 26 Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended September 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 $ — — 932 1,168 (41 ) 2,059 Operating revenues - affiliate — — — — — — Total operating revenues — — 932 1,168 (41 ) 2,059 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 600 487 (41 ) 1,046 Selling, general and administrative expenses 2 1 272 79 — 354 Operating expenses - affiliate — — — — — — Depreciation and amortization — — 97 213 — 310 Total operating expenses 2 1 969 779 (41 ) 1,710 OPERATING INCOME (LOSS) (2 ) (1 ) (37 ) 389 — 349 OTHER INCOME (EXPENSE) Interest income — — 6 — — 6 Interest income - affiliate — — — — — — Interest expense (9 ) (121 ) — (4 ) — (134 ) Interest income (expense) - intercompany, net 377 562 (868 ) (71 ) — — Equity in net earnings (losses) of subsidiaries (212 ) (614 ) 215 — 611 — Other income, net — — 12 — — 12 Total other income (expense) 156 (173 ) (635 ) (75 ) 611 (116 ) INCOME (LOSS) BEFORE INCOME TAXES 154 (174 ) (672 ) 314 611 233 Income tax benefit (expense) 3 (38 ) (1 ) (40 ) — (76 ) NET INCOME (LOSS) 157 (212 ) (673 ) 274 611 157 Other comprehensive income (loss), net of income taxes 44 — — 44 (44 ) 44 COMPREHENSIVE INCOME (LOSS) $ 201 (212 ) (673 ) 318 567 201 Condensed Consolidating Statements of Comprehensive Income (Loss) Nine Months Ended September 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 $ — — 2,786 3,499 (116 ) 6,169 Operating revenues - affiliate — — — — — — Total operating revenues — — 2,786 3,499 (116 ) 6,169 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) — — 1,785 1,463 (116 ) 3,132 Selling, general and administrative expenses 4 3 843 235 — 1,085 Operating expenses - affiliate — — — — — — Depreciation and amortization — — 276 637 — 913 Total operating expenses 4 3 2,904 2,335 (116 ) 5,130 OPERATING INCOME (LOSS) (4 ) (3 ) (118 ) 1,164 — 1,039 OTHER INCOME (EXPENSE) Interest income — — 11 — — 11 Interest income - affiliate — — — — — — Interest expense (27 ) (358 ) (2 ) (12 ) — (399 ) Interest income (expense) - intercompany, net 1,132 1,703 (2,605 ) (230 ) — — Equity in net earnings (losses) of subsidiaries (703 ) (1,892 ) 618 — 1,977 — Loss on modification and extinguishment of debt — (44 ) — — — (44 ) Other income, net — — 15 (1 ) — 14 Total other income (expense) 402 (591 ) (1,963 ) (243 ) 1,977 (418 ) INCOME (LOSS) BEFORE INCOME TAXES 398 (594 ) (2,081 ) 921 1,977 621 Income tax benefit (expense) 8 (109 ) (3 ) (111 ) — (215 ) NET INCOME (LOSS) 406 (703 ) (2,084 ) 810 1,977 406 Other comprehensive income (loss), net of income taxes 106 — — 106 (106 ) 106 COMPREHENSIVE INCOME (LOSS) $ 512 (703 ) (2,084 ) 916 1,871 512
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets September 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 $ 36 — 73 79 — 188 Restricted cash and securities — — 1 2 — 3 Assets held for sale — — 1 14 — 15 Accounts receivable — — 24 691 — 715 Accounts receivable - affiliate — — — — — — Intercompany advances 16,935 23,527 (106 ) 10,478 (50,834 ) — Note receivable - affiliate 1,825 — — — — 1,825 Other — — 122 168 — 290 Total current assets 18,796 23,527 115 11,432 (50,834 ) 3,036 Property, plant, and equipment, net — — 3,137 6,137 — 9,274 Restricted cash and securities 15 — 10 — — 25 GOODWILL AND OTHER ASSETS Goodwill — — 9,576 1,556 — 11,132 Customer relationships, net — — 3,815 3,986 — 7,801 Other intangible assets, net — — 373 28 — 401 Investment in subsidiaries 16,265 18,667 4,057 — (38,989 ) — Deferred tax assets 283 1,902 203 (154 ) (1,771 ) 463 Other, net — — 75 57 — 132 Total goodwill and other assets 16,548 20,569 18,099 5,473 (40,760 ) 19,929 TOTAL ASSETS $ 35,359 44,096 21,361 23,042 (91,594 ) 32,264 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ — — 1 5 — 6 Accounts payable 17 57 215 330 — 619 Accounts payable - affiliate (4 ) (3 ) 93 2 — 88 Income and other taxes 17 3 59 35 — 114 Salaries and benefits — — 196 37 — 233 Interest 3 87 1 5 — 96 Current portion of deferred revenue — — 147 141 — 288 Current portion of deferred revenue, affiliate — — 45,320 5,514 (50,834 ) — Intercompany payables — — — — — — Other — 1 1 70 — 72 Total current liabilities 33 145 46,033 6,139 (50,834 ) 1,516 LONG-TERM DEBT 614 10,075 7 152 — 10,848 DEFERRED REVENUE AND OTHER LIABILITIES Deferred revenues — — 962 219 — 1,181 Deferred income taxes 651 19 837 453 (1,771 ) 189 Other — — 170 188 — 358 Total deferred revenue and other liabilities 651 19 1,969 860 (1,771 ) 1,728 COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY (DEFICIT) 34,061 33,857 (26,648 ) 15,891 (38,989 ) 18,172 TOTAL LIABILITIES AND MEMBER'S EQUITY $ 35,359 44,096 21,361 23,042 (91,594 ) 32,264 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 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 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 Nine Months Ended September 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 $ (49 ) — 1,420 256 — 1,627 INVESTING ACTIVITIES Capital expenditures — — (392 ) (334 ) — (726 ) Proceeds from the sale of property, plant and equipment and other assets 68 — — 51 — 119 Net cash provided by (used in) investing activities 68 — (392 ) (283 ) — (607 ) FINANCING ACTIVITIES Payments of long-term debt — — — (5 ) — (5 ) Distributions (1,130 ) — — — — (1,130 ) Increase (decrease) due from/to affiliates, net 1,130 — (1,130 ) — — — Net cash provided by (used in) financing activities — — (1,130 ) (5 ) — (1,135 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — — — — Net increase (decrease) in cash, cash equivalents and restricted cash and securities 19 — (102 ) (32 ) — (115 ) Cash, cash equivalents and restricted cash and securities at beginning of period 32 — 186 113 — 331 Cash, cash equivalents and restricted cash and securities at end of period $ 51 — 84 81 — 216 Condensed Consolidating Statements of Cash Flows Nine Months Ended September 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 $ (32 ) (378 ) 698 1,503 — 1,791 INVESTING ACTIVITIES Capital expenditures — — (614 ) (404 ) — (1,018 ) Purchase of marketable securities — — (1,127 ) — — (1,127 ) Maturity of marketable securities — — 1,127 — — 1,127 Proceeds from the sale of property, plant, and equipment and other assets — — 1 — — 1 Net cash provided by (used in) investing activities — — (613 ) (404 ) — (1,017 ) FINANCING ACTIVITIES Net proceeds from issuance of long-term debt — 4,569 — — — 4,569 Payments of long-term debt — (4,911 ) 1 (7 ) — (4,917 ) Increase (decrease) due from/to affiliates, net 28 720 356 (1,104 ) — — Net cash provided by (used in) financing activities 28 378 357 (1,111 ) — (348 ) Effect of exchange rates on cash, cash equivalents and restricted cash and securities — — — 3 — 3 Net increase (decrease) in cash, cash equivalents and restricted cash and securities (4 ) — 442 (9 ) — 429 Cash, cash equivalents and restricted cash and securities at beginning of period 37 — 1,710 110 — 1,857 Cash, cash equivalents and restricted cash and securities at end of period $ 33 — 2,152 101 — 2,286

Background (Details)

Background (Details) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
New Accounting Pronouncement, Early Adoption [Line Items]
Number of reportable segments | segment	1
Provisional income tax expense (benefit)			$ 195
Provisional income tax expense (benefit), purchase accounting adjustment	$ 83
Contract Acquisition and Fulfillment Costs
New Accounting Pronouncement, Early Adoption [Line Items]
Amortization period	30 months
Adjustments for New Accounting Pronouncement
New Accounting Pronouncement, Early Adoption [Line Items]
Production and distribution costs		$ 70
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	9 Months Ended
	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Nov. 01, 2017citydark_fiber
Business Acquisition [Line Items]
Goodwill	$ 11,132	$ 10,837
CenturyLink | Level 3 Parent, LLC
Business Acquisition [Line Items]
Consideration transferred	19,600
Number of strands of dark fiber divested | dark_fiber			24
Number of cities connected by dark fiber | city			30
Goodwill	$ 11,190	$ 10,837

CenturyLink Merger - Preliminar

CenturyLink Merger - Preliminary Estimated Aggregate Consideration (Details) - USD ($) $ in Millions	Nov. 01, 2017	Sep. 30, 2018	Dec. 31, 2017
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill		$ 11,132	$ 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		3,292	3,317
Property, plant and equipment		9,397	9,311
Other noncurrent assets		985	782
Current liabilities, excluding current maturities of long-term debt		(1,492)	(1,461)
Current maturities of long-term debt		(7)	(7)
Long-term debt		(10,888)	(10,888)
Deferred revenue and other liabilities		(1,715)	(1,613)
Goodwill		11,190	10,837
Total estimated aggregate consideration		19,628	19,633
Purchase Price Adjustments
Cash, accounts receivable and other current assets		(25)
Property, plant and equipment		86
Other noncurrent assets		203
Current liabilities, excluding current maturities of long-term debt		(31)
Current maturities of long-term debt		0
Long-term debt		0
Deferred revenue and other liabilities		(102)
Goodwill		353
Total estimated aggregate consideration		(5)
Accounts receivable contractual value	$ 884	884
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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Transaction-related expenses	$ 0		$ 0
Integration-related expenses	16		94
Total acquisition-related expenses	$ 16		$ 94
Predecessor
Business Acquisition [Line Items]
Transaction-related expenses		$ 7		$ 12
Integration-related expenses		24		62
Total acquisition-related expenses		$ 31		$ 74

Goodwill, Customer Relationsh_3

Goodwill, Customer Relationships and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 11,132	$ 10,837
Customer Contracts And Relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	7,801	8,845
Accumulated amortization	659	126
Trade Names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	106	126
Accumulated amortization	24	4
Patents and Developed Technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	295	252
Accumulated amortization	51	9
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 401	$ 378

Goodwill, Customer Relationsh_4

Goodwill, Customer Relationships and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Valuation allowance, available to reduce goodwill					$ 16
Acquired finite-lived intangible asset amortization expense	$ 204	$ 49	$ 595	$ 153
Intangible assets, gross, including goodwill	$ 20,100		$ 20,100

Goodwill, Customer Relationsh_5

Goodwill, Customer Relationships and Other Intangible Assets - Amortization Expense (Details) $ in Millions	Sep. 30, 2018USD ($)
Estimated amortization expense of finite-lived acquisition-related intangible assets
2018 (remaining three months)	$ 202
2,019	805
2,020	805
2,021	805
2,022	$ 794

Goodwill, Customer Relationsh_6

Goodwill, Customer Relationships and Other Intangible Assets - Goodwill Activity (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill [Roll Forward]
As of December 31, 2017	$ 10,837
Purchase accounting and other adjustments	353
Effect of foreign currency rate change	(58)
As of September 30, 2018	$ 11,132

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) $ in Billions	9 Months Ended
	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 6.3
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]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	67.00%
Remaining performance obligation, timing of satisfaction	2 years 3 months
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract term	1 year
Average expected contract term	10 years
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract term	7 years
Average expected contract term	20 years

Revenue Recognition - Effects o

Revenue Recognition - Effects of ASC 606 (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 2,010	$ 6,149
Cost of services and products (exclusive of depreciation and amortization)	976	2,954
Selling, general and administrative	311	1,043
Interest expense	137	381
Income tax expense	38	184
Net income	88	190
Other current assets	290	290	$ 117
Other long-term assets, net	132	132	63
Deferred revenue	1,469	1,469
Deferred income tax assets, net	274	274
Member's equity	18,312	18,312	$ 19,254
Impact of 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	(4)	(4)
Cost of services and products (exclusive of depreciation and amortization)	0	0
Selling, general and administrative	12	32
Interest expense	(7)	(7)
Income tax expense	(2)	(8)
Net income	(7)	(21)
Other current assets	(22)	(22)
Other long-term assets, net	(22)	(22)
Deferred revenue	(3)	(3)
Deferred income tax assets, net	10	10
Member's equity	(31)	(31)
ASC 605 Historical Adjusted Balances
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	2,006	6,145
Cost of services and products (exclusive of depreciation and amortization)	976	2,954
Selling, general and administrative	323	1,075
Interest expense	130	374
Income tax expense	36	176
Net income	81	169
Other current assets	268	268
Other long-term assets, net	110	110
Deferred revenue	1,466	1,466
Deferred income tax assets, net	284	284
Member's equity	$ 18,281	$ 18,281

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total Revenues	$ 2,010		$ 6,149
Adjustments	(72)		(221)
Total revenue from contracts with customers	1,938		5,928
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	1,938		5,928
IP & Data Services
Disaggregation of Revenue [Line Items]
Total Revenues	969		2,959
Adjustments	0		0
Total revenue from contracts with customers	969		2,959
Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Total Revenues	664		2,012
Adjustments	(45)		(140)
Total revenue from contracts with customers	619		1,872
Voice & Collaboration
Disaggregation of Revenue [Line Items]
Total Revenues	349		1,093
Adjustments	0		0
Total revenue from contracts with customers	349		1,093
IT & Managed Services
Disaggregation of Revenue [Line Items]
Total Revenues	1	$ 0	3	$ 0
Adjustments	0		0
Total revenue from contracts with customers	1		3
Other
Disaggregation of Revenue [Line Items]
Total Revenues	1	$ 2	4	$ 6
Adjustments	(1)		(3)
Total revenue from contracts with customers	0		1
Affiliate Revenues
Disaggregation of Revenue [Line Items]
Total Revenues	26		78
Adjustments	(26)		(78)
Total revenue from contracts with customers	$ 0		$ 0

Revenue Recognition - Contract

Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Customer receivables	$ 715	$ 748
Contract liabilities	413	353
Accounts receivable, gross	725	751
Allowance for doubtful accounts receivable	$ 10	$ 3

Revenue Recognition - Deferred

Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 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)	$ 22	$ 135
Revenue recognized from performance obligations satisfied in previous periods	$ 0	$ 0

Revenue Recognition - Capitaliz

Revenue Recognition - Capitalized Contract Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Contract Acquisition Costs
Capitalized Contract Cost [Roll Forward]
Beginning of period balance	$ 34	$ 13
Costs incurred	16	42
Amortization	(5)	(10)
End of period balance	45	45
Contract Fulfillment Costs
Capitalized Contract Cost [Roll Forward]
Beginning of period balance	52	14
Costs incurred	22	70
Amortization	(8)	(18)
End of period balance	$ 66	$ 66

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Long-term debt
Total long-term debt, excluding unamortized premiums	$ 10,691	$ 10,705
Unamortized premiums, net	163	185
Total long-term debt	10,854	10,890
Less current maturities	(6)	(8)
Long-term debt, excluding current maturities	$ 10,848	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	4.432%	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	$ 165	$ 179

Long-Term Debt - Debt Maturitie

Long-Term Debt - Debt Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2018 (remaining three months)	$ 2
2,019	6
2,020	6
2,021	647
2,022	1,609
2023 and thereafter	8,421
Total long-term debt	$ 10,691	$ 10,705

Severance and Restructuring C_3

Severance and Restructuring Costs (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Employee Severance
Restructuring Reserve [Roll Forward]
Balance at January 1, 2018	$ 5
Accrued to expense	15
Payments, net	(18)
Balance at September 30, 2018	2
Restructuring Excluding Severance
Restructuring Reserve [Roll Forward]
Balance at January 1, 2018	4
Accrued to expense	48
Payments, net	(5)
Balance at September 30, 2018	$ 47

Products and Services Revenue_2

Products and Services Revenues - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)category	Sep. 30, 2017USD ($)
Disaggregation of Revenue [Line Items]
Number of categories of products and services | category			6
Operating revenues	$ 2,010		$ 6,149
Predecessor
Disaggregation of Revenue [Line Items]
Operating revenues		$ 2,059		$ 6,169
USF Surcharge and Transaction Taxes
Disaggregation of Revenue [Line Items]
Operating revenues	$ 96		$ 301
USF Surcharge and Transaction Taxes | Predecessor
Disaggregation of Revenue [Line Items]
Operating revenues		$ 97		$ 295

Products and Services Revenue_3

Products and Services Revenues - Operating Revenues for Products and Services (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Operating revenues	$ 2,010		$ 6,149
IP & Data Services
Disaggregation of Revenue [Line Items]
Operating revenues	969		2,959
Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Operating revenues	664		2,012
Voice & Collaboration
Disaggregation of Revenue [Line Items]
Operating revenues	349		1,093
IT & Managed Services
Disaggregation of Revenue [Line Items]
Operating revenues	1	$ 0	3	$ 0
Other
Disaggregation of Revenue [Line Items]
Operating revenues	1	2	4	6
Affiliate Revenues
Disaggregation of Revenue [Line Items]
Operating revenues	$ 26		$ 78
Predecessor
Disaggregation of Revenue [Line Items]
Operating revenues		2,059		6,169
Predecessor | IP & Data Services
Disaggregation of Revenue [Line Items]
Operating revenues		988		2,947
Predecessor | Transport & Infrastructure
Disaggregation of Revenue [Line Items]
Operating revenues		677		2,042
Predecessor | Voice & Collaboration
Disaggregation of Revenue [Line Items]
Operating revenues		392		1,174
Predecessor | Affiliate Revenues
Disaggregation of Revenue [Line Items]
Operating revenues		$ 0		$ 0

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Liabilities, Recurring (Details) - Fair Value, Measurements, Recurring - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions	Sep. 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	$ 10,689	$ 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	$ 10,538	$ 10,528

Commitments, Contingencies an_2

Commitments, Contingencies and Other Items - Lawsuits (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)Employeecontract
Loss Contingencies
Estimated litigation liability	$ 80
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	$ 34
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 an_3

Commitments, Contingencies and Other Items - Other Commitments (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Amount outstanding under letters of credit or other similar obligations	$ 31	$ 36
Collateralized by cash, that is reflected on the consolidated balance sheets as restricted cash	$ 26	$ 30

Other Financial Information - O

Other Financial Information - Other Current Assets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 146	$ 68
Material, supplies and inventory	34	3
Deferred charges	24	17
Deferred commissions	22	0
Other	64	29
Total other current assets	$ 290	$ 117

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 19,272
Other comprehensive loss before reclassifications, net of tax	(164)	$ 107
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	(158)	106
Balance at end of period	18,172
Pension Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
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
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	18	(353)
Other comprehensive loss before reclassifications, net of tax	(164)	106
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	(158)	106
Balance at end of period	(140)	(247)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	18	(387)
Balance at end of period	$ (140)	$ (281)

Condensed Consolidating Finan_3

Condensed Consolidating Financial Information - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
OPERATING REVENUES
Operating revenues	$ 2,010		$ 6,149
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	976		2,954
Selling, general and administrative	311		1,043
Operating expenses - affiliates	65		173
Depreciation and amortization	431		1,295
Total operating expenses	1,783		5,465
OPERATING INCOME	227		684
OTHER INCOME (EXPENSE)
Interest income	(1)		0
Interest income - affiliate	18		50
Interest expense	(137)		(381)
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 income, net	19		21
Total other expense, net	(101)		(310)
INCOME BEFORE INCOME TAX EXPENSE	126		374
Income tax expense	(38)		(184)
NET INCOME	88		190
Other comprehensive (loss) income	(1)		(164)
COMPREHENSIVE INCOME	87		26
Eliminations
OPERATING REVENUES
Operating revenues	(71)		(154)
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	0		0
Selling, general and administrative	(71)		(72)
Operating expenses - affiliates	0		(82)
Depreciation and amortization	0		0
Total operating expenses	(71)		(154)
OPERATING INCOME	0		0
OTHER INCOME (EXPENSE)
Interest income	1		0
Interest income - affiliate	0		0
Interest expense	(1)		0
Interest income (expense) - intercompany, net	0		0
Equity in net earnings (losses) of subsidiaries	1,072		3,375
Other income, net	0		0
Total other expense, net	1,072		3,375
INCOME BEFORE INCOME TAX EXPENSE	1,072		3,375
Income tax expense	0		0
NET INCOME	1,072		3,375
Other comprehensive (loss) income	1		164
COMPREHENSIVE INCOME	1,073		3,539
Level 3 Communications, Inc. | Reportable Legal Entities
OPERATING REVENUES
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		48
Interest expense	(8)		(24)
Interest income (expense) - intercompany, net	771		1,474
Equity in net earnings (losses) of subsidiaries	(690)		(1,321)
Other income, net	(3)		(3)
Total other expense, net	86		174
INCOME BEFORE INCOME TAX EXPENSE	86		174
Income tax expense	2		16
NET INCOME	88		190
Other comprehensive (loss) income	(1)		(164)
COMPREHENSIVE INCOME	87		26
Level 3 Financing, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	0		0
Selling, general and administrative	0		3
Operating expenses - affiliates	0		0
Depreciation and amortization	0		0
Total operating expenses	0		3
OPERATING INCOME	0		(3)
OTHER INCOME (EXPENSE)
Interest income	0		0
Interest income - affiliate	0		0
Interest expense	(118)		(339)
Interest income (expense) - intercompany, net	234		1,446
Equity in net earnings (losses) of subsidiaries	(834)		(2,505)
Other income, net	0		0
Total other expense, net	(718)		(1,398)
INCOME BEFORE INCOME TAX EXPENSE	(718)		(1,401)
Income tax expense	28		80
NET INCOME	(690)		(1,321)
Other comprehensive (loss) income	0		0
COMPREHENSIVE INCOME	(690)		(1,321)
Level 3 Communications, LLC | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	1,001		2,965
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	538		1,727
Selling, general and administrative	333		878
Operating expenses - affiliates	50		140
Depreciation and amortization	176		520
Total operating expenses	1,097		3,265
OPERATING INCOME	(96)		(300)
OTHER INCOME (EXPENSE)
Interest income	0		1
Interest income - affiliate	0		0
Interest expense	(2)		(3)
Interest income (expense) - intercompany, net	(997)		(2,756)
Equity in net earnings (losses) of subsidiaries	452		451
Other income, net	(1)		2
Total other expense, net	(548)		(2,305)
INCOME BEFORE INCOME TAX EXPENSE	(644)		(2,605)
Income tax expense	18		(16)
NET INCOME	(626)		(2,621)
Other comprehensive (loss) income	0		0
COMPREHENSIVE INCOME	(626)		(2,621)
Other Non-Guarantor Subsidiaries | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	1,080		3,338
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	438		1,227
Selling, general and administrative	49		234
Operating expenses - affiliates	15		115
Depreciation and amortization	255		775
Total operating expenses	757		2,351
OPERATING INCOME	323		987
OTHER INCOME (EXPENSE)
Interest income	(2)		(1)
Interest income - affiliate	2		2
Interest expense	(8)		(15)
Interest income (expense) - intercompany, net	(8)		(164)
Equity in net earnings (losses) of subsidiaries	0		0
Other income, net	23		22
Total other expense, net	7		(156)
INCOME BEFORE INCOME TAX EXPENSE	330		831
Income tax expense	(86)		(264)
NET INCOME	244		567
Other comprehensive (loss) income	(1)		(164)
COMPREHENSIVE INCOME	243		403
Predecessor
OPERATING REVENUES
Operating revenues		$ 2,059		$ 6,169
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		1,046		3,132
Selling, general and administrative		354		1,085
Operating expenses - affiliates		0		0
Depreciation and amortization		310		913
Total operating expenses		1,710		5,130
OPERATING INCOME		349		1,039
OTHER INCOME (EXPENSE)
Interest income		6		11
Interest income - affiliate		0		0
Interest expense		(134)		(399)
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 income, net		12		14
Total other expense, net		(116)		(418)
INCOME BEFORE INCOME TAX EXPENSE		233		621
Income tax expense		(76)		(215)
NET INCOME		157		406
Other comprehensive (loss) income		44		106
COMPREHENSIVE INCOME		201		512
Predecessor | Eliminations
OPERATING REVENUES
Operating revenues		(41)		(116)
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		(41)		(116)
Selling, general and administrative		0		0
Operating expenses - affiliates		0		0
Depreciation and amortization		0		0
Total operating expenses		(41)		(116)
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		611		1,977
Loss on modification and extinguishment of debt				0
Other income, net		0		0
Total other expense, net		611		1,977
INCOME BEFORE INCOME TAX EXPENSE		611		1,977
Income tax expense		0		0
NET INCOME		611		1,977
Other comprehensive (loss) income		(44)		(106)
COMPREHENSIVE INCOME		567		1,871
Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		0		0
Selling, general and administrative		2		4
Operating expenses - affiliates		0		0
Depreciation and amortization		0		0
Total operating expenses		2		4
OPERATING INCOME		(2)		(4)
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		(9)		(27)
Interest income (expense) - intercompany, net		377		1,132
Equity in net earnings (losses) of subsidiaries		(212)		(703)
Loss on modification and extinguishment of debt				0
Other income, net		0		0
Total other expense, net		156		402
INCOME BEFORE INCOME TAX EXPENSE		154		398
Income tax expense		3		8
NET INCOME		157		406
Other comprehensive (loss) income		44		106
COMPREHENSIVE INCOME		201		512
Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		0		0
Selling, general and administrative		1		3
Operating expenses - affiliates		0		0
Depreciation and amortization		0		0
Total operating expenses		1		3
OPERATING INCOME		(1)		(3)
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		(121)		(358)
Interest income (expense) - intercompany, net		562		1,703
Equity in net earnings (losses) of subsidiaries		(614)		(1,892)
Loss on modification and extinguishment of debt				(44)
Other income, net		0		0
Total other expense, net		(173)		(591)
INCOME BEFORE INCOME TAX EXPENSE		(174)		(594)
Income tax expense		(38)		(109)
NET INCOME		(212)		(703)
Other comprehensive (loss) income		0		0
COMPREHENSIVE INCOME		(212)		(703)
Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		932		2,786
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		600		1,785
Selling, general and administrative		272		843
Operating expenses - affiliates		0		0
Depreciation and amortization		97		276
Total operating expenses		969		2,904
OPERATING INCOME		(37)		(118)
OTHER INCOME (EXPENSE)
Interest income		6		11
Interest income - affiliate		0		0
Interest expense		0		(2)
Interest income (expense) - intercompany, net		(868)		(2,605)
Equity in net earnings (losses) of subsidiaries		215		618
Loss on modification and extinguishment of debt				0
Other income, net		12		15
Total other expense, net		(635)		(1,963)
INCOME BEFORE INCOME TAX EXPENSE		(672)		(2,081)
Income tax expense		(1)		(3)
NET INCOME		(673)		(2,084)
Other comprehensive (loss) income		0		0
COMPREHENSIVE INCOME		(673)		(2,084)
Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		1,168		3,499
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)		487		1,463
Selling, general and administrative		79		235
Operating expenses - affiliates		0		0
Depreciation and amortization		213		637
Total operating expenses		779		2,335
OPERATING INCOME		389		1,164
OTHER INCOME (EXPENSE)
Interest income		0		0
Interest income - affiliate		0		0
Interest expense		(4)		(12)
Interest income (expense) - intercompany, net		(71)		(230)
Equity in net earnings (losses) of subsidiaries		0		0
Loss on modification and extinguishment of debt				0
Other income, net		0		(1)
Total other expense, net		(75)		(243)
INCOME BEFORE INCOME TAX EXPENSE		314		921
Income tax expense		(40)		(111)
NET INCOME		274		810
Other comprehensive (loss) income		44		106
COMPREHENSIVE INCOME		318		916
Non-Affiliate Revenue
OPERATING REVENUES
Operating revenues	1,984		6,071
Non-Affiliate Revenue | Eliminations
OPERATING REVENUES
Operating revenues	0		0
Non-Affiliate Revenue | Level 3 Communications, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	0		0
Non-Affiliate Revenue | Level 3 Financing, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	0		0
Non-Affiliate Revenue | Level 3 Communications, LLC | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	951		2,884
Non-Affiliate Revenue | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	1,033		3,187
Non-Affiliate Revenue | Predecessor
OPERATING REVENUES
Operating revenues		2,059		6,169
Non-Affiliate Revenue | Predecessor | Eliminations
OPERATING REVENUES
Operating revenues		(41)		(116)
Non-Affiliate Revenue | Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
Non-Affiliate Revenue | Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
Non-Affiliate Revenue | Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		932		2,786
Non-Affiliate Revenue | Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		1,168		3,499
Affiliate Revenues
OPERATING REVENUES
Operating revenues	26		78
Affiliate Revenues | Eliminations
OPERATING REVENUES
Operating revenues	(71)		(154)
Affiliate Revenues | Level 3 Communications, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	0		0
Affiliate Revenues | Level 3 Financing, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	0		0
Affiliate Revenues | Level 3 Communications, LLC | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	50		81
Affiliate Revenues | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
OPERATING REVENUES
Operating revenues	$ 47		$ 151
Affiliate Revenues | Predecessor
OPERATING REVENUES
Operating revenues		0		0
Affiliate Revenues | Predecessor | Eliminations
OPERATING REVENUES
Operating revenues		0		0
Affiliate Revenues | Predecessor | Level 3 Communications, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
Affiliate Revenues | Predecessor | Level 3 Financing, Inc. | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
Affiliate Revenues | Predecessor | Level 3 Communications, LLC | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		0		0
Affiliate Revenues | Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
OPERATING REVENUES
Operating revenues		$ 0		$ 0

Condensed Consolidating Finan_4

Condensed Consolidating Financial Information - Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 188	$ 297
Restricted cash and securities	3	5
Assets held for sale	15	140
Accounts receivable	715	748
Accounts receivable - affiliate	0	13
Intercompany advances	0	0
Note receivable - affiliate	1,825	1,825
Other	290	117
Total current assets	3,036	3,145
Property, plant, and equipment, net	9,274	9,412
Restricted cash and securities	25	29
GOODWILL AND OTHER ASSETS
Goodwill	11,132	10,837
Investment in subsidiaries	0	0
Deferred tax assets	463	426
Other, net	132	63
Total goodwill and other assets	19,929	20,549
TOTAL ASSETS	32,264	33,135
CURRENT LIABILITIES
Current maturities of long-term debt	6	8
Accounts payable	619	695
Accounts payable - affiliate	88	41
Income and other taxes	114	100
Salaries and benefits	233	136
Interest	96	109
Current portion of deferred revenue	288	260
Intercompany payables	0	0
Other	72	57
Total current liabilities	1,516	1,406
LONG-TERM DEBT	10,848	10,882
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	1,181	1,099
Deferred income taxes	189	212
Other	358	264
Total deferred revenue and other liabilities	1,728	1,575
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY (DEFICIT)	18,172	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY	32,264	33,135
Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	7,801	8,845
Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	401	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	0	(51)
Intercompany advances	(50,834)	(42,483)
Note receivable - affiliate	0	0
Other	0	0
Total current assets	(50,834)	(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	(38,989)	(38,973)
Deferred tax assets	(1,771)	(1,771)
Other, net	0	0
Total goodwill and other assets	(40,760)	(40,744)
TOTAL ASSETS	(91,594)	(83,278)
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	0	0
Accounts payable - affiliate	0	(51)
Income and other taxes	0	0
Salaries and benefits	0	0
Interest	0	0
Current portion of deferred revenue	0	0
Current portion of deferred revenue, affiliate	(50,834)
Intercompany payables	0	(42,483)
Other	0	0
Total current liabilities	(50,834)	(42,534)
LONG-TERM DEBT	0	0
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	0	0
Deferred income taxes	(1,771)	(1,771)
Other	0	0
Total deferred revenue and other liabilities	(1,771)	(1,771)
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY (DEFICIT)	(38,989)	(38,973)
TOTAL LIABILITIES AND MEMBER'S EQUITY	(91,594)	(83,278)
Eliminations | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	0	0
Eliminations | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	0	0
Level 3 Communications, Inc. | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	36	13
Restricted cash and securities	0	0
Assets held for sale	0	68
Accounts receivable	0	0
Accounts receivable - affiliate	0	0
Intercompany advances	16,935	16,251
Note receivable - affiliate	1,825	1,825
Other	0	0
Total current assets	18,796	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	16,265	16,954
Deferred tax assets	283	280
Other, net	0	0
Total goodwill and other assets	16,548	17,234
TOTAL ASSETS	35,359	35,410
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	17	0
Accounts payable - affiliate	(4)	11
Income and other taxes	17	0
Salaries and benefits	0	0
Interest	3	11
Current portion of deferred revenue	0	0
Current portion of deferred revenue, affiliate	0
Intercompany payables	0	0
Other	0	16
Total current liabilities	33	38
LONG-TERM DEBT	614	616
DEFERRED REVENUE AND OTHER LIABILITIES
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)
MEMBER'S EQUITY (DEFICIT)	34,061	34,107
TOTAL LIABILITIES AND MEMBER'S EQUITY	35,359	35,410
Level 3 Communications, Inc. | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	0	0
Level 3 Communications, Inc. | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, 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	23,527	21,032
Note receivable - affiliate	0	0
Other	0	0
Total current assets	23,527	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	18,667	18,403
Deferred tax assets	1,902	1,795
Other, net	0	0
Total goodwill and other assets	20,569	20,198
TOTAL ASSETS	44,096	41,230
CURRENT LIABILITIES
Current maturities of long-term debt	0	0
Accounts payable	57	1
Accounts payable - affiliate	(3)	0
Income and other taxes	3	0
Salaries and benefits	0	0
Interest	87	91
Current portion of deferred revenue	0	0
Current portion of deferred revenue, affiliate	0
Intercompany payables	0	0
Other	1	0
Total current liabilities	145	92
LONG-TERM DEBT	10,075	10,096
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	0	0
Deferred income taxes	19	0
Other	0	1
Total deferred revenue and other liabilities	19	1
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY (DEFICIT)	33,857	31,041
TOTAL LIABILITIES AND MEMBER'S EQUITY	44,096	41,230
Level 3 Financing, Inc. | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	0	0
Level 3 Financing, Inc. | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	0	0
Level 3 Communications, LLC | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	73	175
Restricted cash and securities	1	1
Assets held for sale	1	5
Accounts receivable	24	26
Accounts receivable - affiliate	0	60
Intercompany advances	(106)	0
Note receivable - affiliate	0	0
Other	122	54
Total current assets	115	321
Property, plant, and equipment, net	3,137	3,237
Restricted cash and securities	10	10
GOODWILL AND OTHER ASSETS
Goodwill	9,576	1,200
Investment in subsidiaries	4,057	3,616
Deferred tax assets	203	0
Other, net	75	32
Total goodwill and other assets	18,099	9,550
TOTAL ASSETS	21,361	13,118
CURRENT LIABILITIES
Current maturities of long-term debt	1	2
Accounts payable	215	323
Accounts payable - affiliate	93	0
Income and other taxes	59	55
Salaries and benefits	196	109
Interest	1	0
Current portion of deferred revenue	147	129
Current portion of deferred revenue, affiliate	45,320
Intercompany payables	0	42,483
Other	1	23
Total current liabilities	46,033	43,124
LONG-TERM DEBT	7	13
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	962	846
Deferred income taxes	837	870
Other	170	98
Total deferred revenue and other liabilities	1,969	1,814
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY (DEFICIT)	(26,648)	(31,833)
TOTAL LIABILITIES AND MEMBER'S EQUITY	21,361	13,118
Level 3 Communications, LLC | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	3,815	4,324
Level 3 Communications, LLC | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	373	378
Other Non-Guarantor Subsidiaries | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	79	109
Restricted cash and securities	2	4
Assets held for sale	14	67
Accounts receivable	691	722
Accounts receivable - affiliate	0	4
Intercompany advances	10,478	5,200
Note receivable - affiliate	0	0
Other	168	63
Total current assets	11,432	6,169
Property, plant, and equipment, net	6,137	6,175
Restricted cash and securities	0	0
GOODWILL AND OTHER ASSETS
Goodwill	1,556	9,637
Investment in subsidiaries	0	0
Deferred tax assets	(154)	122
Other, net	57	31
Total goodwill and other assets	5,473	14,311
TOTAL ASSETS	23,042	26,655
CURRENT LIABILITIES
Current maturities of long-term debt	5	6
Accounts payable	330	371
Accounts payable - affiliate	2	81
Income and other taxes	35	45
Salaries and benefits	37	27
Interest	5	7
Current portion of deferred revenue	141	131
Current portion of deferred revenue, affiliate	5,514
Intercompany payables	0	0
Other	70	18
Total current liabilities	6,139	686
LONG-TERM DEBT	152	157
DEFERRED REVENUE AND OTHER LIABILITIES
Deferred revenue	219	253
Deferred income taxes	453	465
Other	188	164
Total deferred revenue and other liabilities	860	882
COMMITMENTS AND CONTINGENCIES (Note 9)
MEMBER'S EQUITY (DEFICIT)	15,891	24,930
TOTAL LIABILITIES AND MEMBER'S EQUITY	23,042	26,655
Other Non-Guarantor Subsidiaries | Reportable Legal Entities | Customer Contracts And Relationships
GOODWILL AND OTHER ASSETS
Intangible assets, net	3,986	4,521
Other Non-Guarantor Subsidiaries | Reportable Legal Entities | Other Intangible Assets
GOODWILL AND OTHER ASSETS
Intangible assets, net	$ 28	$ 0

Condensed Consolidating Finan_5

Condensed Consolidating Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Condensed Consolidating Financial Information
Net cash provided by operating activities	$ 1,627
INVESTING ACTIVITIES
Capital expenditures	(726)
Purchase of marketable securities	0
Maturity of marketable securities	0
Proceeds from sale of property, plant and equipment and other assets	119
Net cash used in investing activities	(607)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	0
Payments of long-term debt	(5)
Distributions	(1,130)
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	(1,135)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(115)
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	216
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
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) increase 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	(49)
INVESTING ACTIVITIES
Capital expenditures	0
Proceeds from sale of property, plant and equipment and other assets	68
Net cash used in investing activities	68
FINANCING ACTIVITIES
Payments of long-term debt	0
Distributions	(1,130)
Increase (decrease) due from/to affiliates, net	1,130
Net cash used in financing activities	0
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	19
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	51
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
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) increase 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	1,420
INVESTING ACTIVITIES
Capital expenditures	(392)
Proceeds from sale of property, plant and equipment and other assets	0
Net cash used in investing activities	(392)
FINANCING ACTIVITIES
Payments of long-term debt	0
Distributions	0
Increase (decrease) due from/to affiliates, net	(1,130)
Net cash used in financing activities	(1,130)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(102)
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	84
Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities	256
INVESTING ACTIVITIES
Capital expenditures	(334)
Proceeds from sale of property, plant and equipment and other assets	51
Net cash used in investing activities	(283)
FINANCING ACTIVITIES
Payments of long-term debt	(5)
Distributions	0
Increase (decrease) due from/to affiliates, net	0
Net cash used in financing activities	(5)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities	0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities	(32)
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	$ 81
Predecessor
Condensed Consolidating Financial Information
Net cash provided by operating activities		$ 1,791
INVESTING ACTIVITIES
Capital expenditures		(1,018)
Purchase of marketable securities		(1,127)
Maturity of marketable securities		1,127
Proceeds from sale of property, plant and equipment and other assets		1
Net cash used in investing activities		(1,017)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,917)
Distributions		0
Increase (decrease) due from/to affiliates, net		0
Net cash used in financing activities		(348)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		3
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		429
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		2,286
Predecessor | Eliminations
Condensed Consolidating Financial Information
Net cash provided by operating activities		0
INVESTING ACTIVITIES
Capital expenditures		0
Purchase of marketable securities		0
Maturity of marketable securities		0
Proceeds from sale of property, plant and equipment and other assets		0
Net cash used in investing activities		0
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) increase 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		(32)
INVESTING ACTIVITIES
Capital expenditures		0
Purchase of marketable securities		0
Maturity of marketable securities		0
Proceeds from sale of property, plant and equipment and other assets		0
Net cash used in investing activities		0
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		0
Increase (decrease) due from/to affiliates, net		28
Net cash used in financing activities		28
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net (decrease) increase 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		(378)
INVESTING ACTIVITIES
Capital expenditures		0
Purchase of marketable securities		0
Maturity of marketable securities		0
Proceeds from sale of property, plant and equipment and other assets		0
Net cash used in investing activities		0
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		4,569
Payments of long-term debt		(4,911)
Increase (decrease) due from/to affiliates, net		720
Net cash used in financing activities		378
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net (decrease) increase 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		698
INVESTING ACTIVITIES
Capital expenditures		(614)
Purchase of marketable securities		(1,127)
Maturity of marketable securities		1,127
Proceeds from sale of property, plant and equipment and other assets		1
Net cash used in investing activities		(613)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		1
Increase (decrease) due from/to affiliates, net		356
Net cash used in financing activities		357
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		0
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		442
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		2,152
Predecessor | Other Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Consolidating Financial Information
Net cash provided by operating activities		1,503
INVESTING ACTIVITIES
Capital expenditures		(404)
Purchase of marketable securities		0
Maturity of marketable securities		0
Proceeds from sale of property, plant and equipment and other assets		0
Net cash used in investing activities		(404)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt		0
Payments of long-term debt		(7)
Increase (decrease) due from/to affiliates, net		(1,104)
Net cash used in financing activities		(1,111)
Effect of exchange rates on cash, cash equivalents and restricted cash and securities		3
Net (decrease) increase in cash, cash equivalents and restricted cash and securities		(9)
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		$ 101